nep-lab New Economics Papers
on Labour Economics
Issue of 2005‒08‒13
43 papers chosen by
Stephanie Lluis
University of Minesota

  1. The Dynamics of the National Minimum Wage: Transitions Between Different Labour Market States By Melanie K. Jones; Richard J. Jones; Philip D. Murphy; Peter J. Sloane
  2. Layoffs, Lemons, Race and Gender By Luojia Hu; Christopher Taber
  3. Job changes, hours changes and labour market flexibility: panel data evidence for Britain By Richard Blundell; Mike Brewer; Marco Francesconi
  4. The Establishment-Size Wage Premium: Evidence from European Countries By Thierry Lallemand; Robert Plasman; François Rycx
  5. Minimum Wage Effects on Wages, Employment and Prices: Implications for Poverty Alleviation in Brazil By Sara Lemos
  6. Inter-industry Wage Differentials and the Gender Wage Gap : Evidence from European Countries By Brenda Gannon; Robert Plasman; Ilan Tojerow; François Rycx
  7. Low-wage employment in Portugal: a mixed logit approach By Carlos Barros; Isabel Proenca; Jose Cabral Vieira
  8. A Structural Non-Stationary Model of Job Search: Stigmatization of the Unemployed by Job Offers or Wage Offers? By Lollivier, Stefan; Rioux, Laurence
  9. Comparing apples with oranges. Revisiting the gender wage gap in an international perspective By Robert Plasman; Salimata Sissoko
  10. Do Benefit Hikes Damage Job Finding? Evidence from Swedish Unemployment Insurance Reforms By Helge Bennmarker; Kenneth Carling; Bertil Holmlund
  11. The Effect of Government-Mandated Family Leave on Employer Family Leave Policies By Charles L. Baum
  12. Work and Leisure in the US and Europe: Why So Different? By Alesina, Alberto F; Glaeser, Edward L; Sacerdote, Bruce
  13. On the Post-Unification Development of Public and Private Pay in Germany By Axel Heitmueller; Kostas Mavromaras
  14. How Do Marital Status, Wage Rates, and Work Commitment Interact? By Avner Ahituv; Robert I. Lerman
  15. Do Job Search Rules and Reemployment Services Reduce Insured Unemployment? By Christopher J. O'Leary; Stephen A. Wandner
  16. Gender and Assimilation Among Mexican Americans By Francine D. Blau; Lawrence M. Kahn
  17. The Macroeconomic Consequences of Reciprocity in Labor Relations By Jean-Pierre Danthine; André Kurmann
  18. The Choice of Institutions: The Role of Risk and Risk-Aversion By Diana Weinhold; Paul J. Zak
  19. Technical Change and the Wage Structure During the Second Industrial Revolution: Evidence from the Merchant Marine, 1865-1912 By Aimee Chin; Chinhui Juhn; Peter Thompson
  20. Turning a Blind Eye: Costly Enforcement, Credible Commitment and Minimum Wage Laws By Basu, Arnab K; Chau, Nancy H; Kanbur, Ravi
  21. The Public Sector Pay Gap in Pakistan: A Quantile Regression Analysis By Asma Hyder; Barry Reilly
  22. The Unemployment Inflation Trade-Off in the Euro Area By Tobias Linzert
  23. Childbearing and psycho-social work life conditions in Sweden 1991-2000 By Ström, Sara
  24. On-The-Job Search and Sorting By Pieter A. Gautier; Coen N. Teulings; Aico van Vuuren
  25. Swedish parental leave and gender equality - Achievements and reform challenges in a European perspective By Duvander, Ann-Zofie; Ferrarini, Tommy; Thalberg, Sara
  26. “Body Size, Activity, Employment and Wages in Europe: A First Approach” By Jaume Garcia; Climent Quintana- Domeque
  27. Making Sense of Bolkestein-Bashing: Trade Liberalization Under Segmented Labour Markets By Saint-Paul, Gilles
  28. Migration and Integration of Immigrants in Denmark By Martin Jorgensen; Deborah Roseveare
  29. Women-Led Firms and the Gender Gap in Top Executive Jobs By Linda A. Bell
  30. Does Obesity Hurt Your Wages More in Dublin than in Madrid? Evidence from ECHP By Béatrice d’Hombres; Giorgio Brunello
  31. Adverse selection in disability insurance: empirical evidence for Dutch firms By Anja Deelen
  32. The Gender Pay Gap and Trade Liberalisation: Evidence for India By Barry Reilly; Puja Vasudeva Dutta
  33. The Cyclical Behaviour of Shadow and Regular Employment By Maurizio Bovi
  34. Wage structure and firm productivity in Belgium By Thierry Lallemand; Robert Plasman; François Rycx
  35. The Influence of Student Achievement on Teacher Turnover By Torberg Falch; Marte Rønning
  36. Busyness as the Badge of Honour for the New Superordinate Working Class By Jonathan Gershuny
  37. Making A Difference By Francois, Patrick
  38. The Effects of Employment while Pregnant on Health at Birth By Charles L. Baum
  39. Family relations, children and interregional mobility, 1970 to 2000 By Jans, Ann-Christin
  40. Evaluating Labor Market Reforms: A General Equilibrium Approach By César Alonso-Borrego; Jesús Fernández-Villaverde; José E. Galdón-Sánchez
  41. Competitive Work Environments and Social Preferences: Field Experimental Evidence from a Japanese Fishing Community By Jeffrey Carpenter; Erika Seki
  42. CEO-Firm Match and Principal-Agent Problem By Li, Fei; Ueda, Masako
  43. OECD — CHINA GOVERNANCE PROJECT: Measuring Atypical Jobs: Levels and Changes By Francesca Ceccato; Eleonora Cimino; Leonello Tronti

  1. By: Melanie K. Jones (WELMERC, University of Wales Swansea); Richard J. Jones (WELMERC, University of Wales Swansea); Philip D. Murphy (WELMERC, University of Wales Swansea); Peter J. Sloane (WELMERC, University of Wales Swansea and IZA Bonn)
    Abstract: An important policy issue is whether the National Minimum Wage (NMW) introduced in Britain in April 1999, is a stepping stone to higher wages or traps workers in a low-wage – nowage cycle. In this paper we utilise the longitudinal element of the Labour Force Survey over the period 1999 to 2003 to model transitions between different labour market states – payment at or below the NMW, above the NMW, unemployment and inactivity, using a multinomial logit approach. It appears that for many workers payment at or below the NMW is of relatively short duration and a substantial number move into higher paid jobs.
    Keywords: national minimum wage, transitions, steady state distributions
    JEL: J0 J3 J6
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1690&r=lab
  2. By: Luojia Hu (Northwestern University and IZA Bonn); Christopher Taber (Northwestern University)
    Abstract: This paper expands on Gibbons and Katz (1991) by looking at how the difference in wage losses across plant closing and layoff varies with race and gender. We find that the differences between white males and the other groups are striking and complex. The lemons effect of layoff holds for white males as in Gibbons and Katz model, but not for the other three demographic groups (white females, black females, and black males). These three all experience a greater decline in earnings at plant closings than at layoffs. This results from two reinforcing effects. First, plant closings have substantially more negative effects on minorities than on whites. Second, layoffs seem to have more negative consequences for white men than the other groups. We also find that the relative wage losses of blacks following layoffs increased after the Civil Rights Act of 1991 which we take as suggestive of an informational effect of layoff as in Gibbons and Katz. The results are suggestive that the large losses that African Americans experience at plant closing could result from heterogeneity in taste discrimination across firms.
    Keywords: asymmetric information, displaced workers, racial and gender wage gap, discrimination, heterogenous human capital
    JEL: J6 J7
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1702&r=lab
  3. By: Richard Blundell (Institute for Fiscal Studies and University College London); Mike Brewer (Institute for Fiscal Studies); Marco Francesconi (Institute for Fiscal Studies and ISER, Essex University)
    Abstract: This study uses the first twelve waves of the British Household Panel Survey covering the period 1991-2002 to investigate the extent of constraints on desired hours of work within jobs and the degree of flexibility of the labour market for a sample of women. Our main findings are as follows. First, the largest movements in hours worked are observed for workers who change their jobs. Second, about 40 percent of the women in the sample are not putting in the hours they would like. Most of them (mainly full-timers) would like to work fewer hours at the prevailing hourly wage. Again, women who change job experience the greatest hours changes, especially if they are over- or under-employed. Third, there is evidence of hours constraints. The hours movements among quitters are up to 5 hours greater than the movements among stayers. Fourth, we do not detect systematic time trends in the relationship between hours changes and job changes. But there is some evidence that overemployed women find it increasingly more difficult to move towards their desired hours even after changing job. Fifth, the evidence on a flexible labour market is mixed. We find only partial support for the hypothesis that overemployed or underemployed quitters receive compensating wage differentials if the new job does not satisfy their hours preferences, as well as for the hypothesis that quitters get a wage premium when they end up moving to jobs that constraint their desired hours.
    Keywords: Job mobility; Hours constraints; Labour supply preferences; Hours-wage trade-off; Part-time employment.
    JEL: C23 H31 I38 J12 J13 J22
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:05/12&r=lab
  4. By: Thierry Lallemand (DULBEA, Université libre de Bruxelles, Brussels); Robert Plasman (DULBEA, Université libre de Bruxelles, Brussels); François Rycx (DULBEA, Université libre de Bruxelles, Brussels)
    Abstract: This study examines the magnitude and determinants of the establishment-size wage premium in five European countries using a unique harmonised matched employer-employee data set. Findings show the existence of a significant positive wage premium in all countries, even when controlling for labour quality, working conditions, monitoring, sectoral and regional effects, bargaining institutions, job stability, and concentration of skilled workers. In crossnational perspective, results support the existence of an inverse relationship between the size wage gap and the degree of corporatism. Final results indicate that the size wage premium is generally larger in the manufacturing sector and for blue-collar workers.
    Keywords: Establishment-size and wages, matched employer-employee data, Europe.
    JEL: J31
    Date: 2005–02
    URL: http://d.repec.org/n?u=RePEc:dul:wpaper:05-07rs&r=lab
  5. By: Sara Lemos
    Abstract: This paper presents new evidence on the effects of the minimum wage using Brazilian monthly household and firm panel data between 1982 and 2000. By examining the effects on wages, employment and prices together we are able to provide an explanation for the small employment effects prevalent in the literature. Our principal finding is that increasing the minimum wage raises wages and prices with small adverse employment effects. This suggests a general wage-price inflationary spiral, where persistent inflation offsets some of the wage gains. The main policy implication deriving from these results is that the potential of the minimum wage to help the poor is bigger under low inflation. Under high inflation, the resulting wage-price spiral makes the minimum wage increase - as well as its antipoverty policy potential - short lived. In this case, the wage effects are volatile and the permanent scars are lower employment and higher inflation in Brazil.
    Keywords: minimum wages; employment; labor costs; cost shock; Brazil
    JEL: J38
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:lec:leecon:05/15&r=lab
  6. By: Brenda Gannon (Economic and Social Research Institute, Dublin); Robert Plasman (DULBEA, Université libre de Bruxelles, Brussels); Ilan Tojerow (DULBEA, Université libre de Bruxelles, Brussels); François Rycx (DULBEA, Université libre de Bruxelles, Brussels)
    Abstract: This study analyses the interaction between inter-industry wage differentials and the gender wage gap in six European countries using a unique harmonised matched employer-employee data set, the 1995 European Structure of Earnings Survey. Findings show the existence of significant inter-industry wage differentials in all countries for both sexes. While their structure is quite similar for men and women and across countries, their dispersion is significantly larger in countries with decentralised bargaining. These differentials are significantly and positively correlated with industry profitability. The magnitude of this correlation, however, is lower in countries with centralised and coordinated collective bargaining. Further results show that in all countries more than 80% of the gender wage gaps within industries are statistically significant. Yet, industries having the highest and the lowest gender wage gaps vary substantially across European countries. Finally, results indicate that industry effects explain between 0 and 29% of the overall gender wage gap.
    Keywords: gender wage gap, sectors, Europe
    JEL: J16 J31
    Date: 2005–02
    URL: http://d.repec.org/n?u=RePEc:dul:wpaper:05-01rs&r=lab
  7. By: Carlos Barros (ISEG-UTL); Isabel Proenca (ISEG-UTL); Jose Cabral Vieira (University of Azores)
    Abstract: In this paper, we examine the determinants of low-wage employment in Portugal. For this purpose, we use a data file of the European Community Household Panel (ECHP) for the years 1998 and 1999. In order to take into account unobserved heterogeneity in the data, a random-parameter logit model is used to analyse the probability of a worker receiving a low wage. The results indicate that the consideration that the effects of the explanatory variables are the same across all individuals, such as is assumed in most of the literature may be misleading. From the policy perspective, this implies that the use of a single instrument in order to combat low-wage employment is inappropriate to satisfy the whole population. In view of this, policies tailored by clusters would be more appropriate.
    Keywords: low-wage employment, random-parameter logit model, public policy.
    JEL: C25 J31 J38
    Date: 2005–08–05
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpla:0508001&r=lab
  8. By: Lollivier, Stefan; Rioux, Laurence
    Abstract: We develop a structural non-stationary model of job search in the fashion of van den Berg (1990). Non-stationarity comes from the duration-dependence in benefits, in the arrival rate of job offers, and in wage offers. The model is then estimated using the French sample of the ECHP Survey (1994-2000). This data set provides the variables required to identify the model (reservation wages, job offers arrival rate, accepted wages and rejected wages) and allows us to reconstruct the ‘true’ monthly sequence of benefits for each unemployed worker. We find that duration-dependence in job offers is quite limited: the arrival rate of job offers is exactly the same after two years of unemployment than at the beginning of the spell. Duration dependence in wage offers is slightly more pronounced: wages are decreasing during the first two years of unemployment. Nevertheless the most important fall is observed at the beginning of the spell. We also find that the former employed in temporary jobs are more sensitive to duration than the other unemployed. Then we simulate the effects, on the expected duration of unemployment, of different reforms of the unemployment compensation system. The expected duration of unemployment goes from 14.01 months to 14.35 months (i.e. +2.42%) when the level of UI benefit is raised by 14% (reform A). Replacing a declining time sequence by a flat profile (reform B) lengthens the spell of unemployment by 1.39 months (+9.92%). The impact is dramatic on the subset of former high-wage workers, whose unemployment duration is raised by 3.92 months (+24.48%). Compared with reform B, the imposition of sanctions shortens substantially unemployment duration, which goes from 15.4 months to 13.15 months (-14.61%). Once more, the effect is stronger on the subset of former high-wage workers, whose unemployment duration is decreased by 6.15 months (-30.85%). Finally, a 3-month increase in the maximum duration of UI entitlement has a quite limited impact on unemployment duration.
    Keywords: insurance; job search; reservation wages; unemployment duration
    JEL: J64 J65
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5108&r=lab
  9. By: Robert Plasman (DULBEA, Université libre de Bruxelles, Brussels); Salimata Sissoko (DULBEA, Université libre de Bruxelles, Brussels)
    Abstract: Using a rich and comparable micro-data set, we analyse international differences in gender pay gaps in the private sector for a sample of five European economies: Belgium, Denmark, Ireland, Italy and Spain. Using different methods, we examine how wage structure, differences in the distribution of measured characteristics, occupational segregation contribute to explain the pattern of international differences. Furthermore, we take into account indirect discrimination influencing female occupational distributions. We find significant impacts of those latter factors on gender differentials. However, the magnitude of their effects varies across countries.
    Keywords: gender wage gap, wage structure, occupational segregation, discrimination
    JEL: J16 J31 J71
    Date: 2005–04
    URL: http://d.repec.org/n?u=RePEc:dul:wpaper:05-12rs&r=lab
  10. By: Helge Bennmarker; Kenneth Carling; Bertil Holmlund
    Abstract: In 2001 and 2002, Sweden introduced several unemployment insurance reforms. A major innovation in the first reform was the introduction of a two-tiered benefit structure for some unemployed individuals. This system involved supplementary compensation during the first 20 weeks of unemployment. The 2002 reform retained the two-tiered benefit structure but involved also substantial benefit hikes for spells exceeding 20 weeks. This paper examines how these reforms affected transitions from unemployment to employment. We take advantage of the fact that the reforms had quasi-experimental features where the “treatments” differed considerably among unemployed individuals. We find that the reforms had strikingly different effects on job finding among men and women. The two reforms in conjunction are estimated to have increased the expected duration of unemployment among men but to have decreased the duration of unemployment among women. The overall effect on the duration of unemployment is not statistically different from zero. However, the reforms reduced job finding among males who remained unemployed for more than 20 weeks.
    Keywords: unemployment duration, unemployment benefits
    JEL: J64 J65
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_1460&r=lab
  11. By: Charles L. Baum
    Abstract: The 1993 Family and Medical Leave Act (FMLA) guarantees employees 12 weeks of unpaid leave to address family issues. Twelve states and the District of Columbia passed similar legislation antedating the FMLA. However, studies in the economics literature find either small or insignificant effects of the legislation on employment, leave-taking, work, and wages. Perhaps employees are unable to use the mandated leave because it is unpaid and/or they do not need family leave because they already have the option of taking off work via vacation, sick leave, and disability leave policies. If so, then family leave legislation may have increased employer-provided family leave without corresponding effects on employment-related outcomes. This paper examines family leave legislation’s effects on employers’ family leave policies, finding significant positive effects.
    Keywords: Labor Supply; Maternity Leave; Family and Medical Leave Act; FMLA
    JEL: J1 J2 J3
    Date: 2004–09
    URL: http://d.repec.org/n?u=RePEc:mts:wpaper:200407&r=lab
  12. By: Alesina, Alberto F; Glaeser, Edward L; Sacerdote, Bruce
    Abstract: Americans average 25.1 working hours per person in working age per week, but the Germans average 18.6 hours. The average American works 46.2 weeks per year, while the French average 40 weeks per year. Why do western Europeans work so much less than Americans? Recent work argues that these differences result from higher European tax rates, but the vast empirical labour supply literature suggests that tax rates can explain only a small amount of the differences in hours between the US and Europe. Another popular view is that these differences are explained by long-standing European ‘culture’, but Europeans worked more than Americans as late as the 1960s. In this paper, we argue that European labour market regulations, advocated by unions in declining European industries who argued ‘work less, work all’ explain the bulk of the difference between the US and Europe. These policies do not seem to have increased employment, but they may have had a more society-wide influence on leisure patterns because of a social multiplier where the returns to leisure increase as more people are taking longer vacations.
    Keywords: europe; hours worked; labour unions; taxation
    JEL: E00 J30
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5140&r=lab
  13. By: Axel Heitmueller (London Business School and IZA Bonn); Kostas Mavromaras (University of Aberdeen and IZA Bonn)
    Abstract: German post-unification in the 1990s is a period that was marked by substantial economic change, part of which was East German wages building towards the much higher West German levels. This paper studies the public-private pay gap in the fast changing economic and political environment of the 1990s using panel estimation techniques which control for unobserved individual heterogeneity. It shows that, while the overall pay gap between public and private sector stayed remarkably constant in the West, earnings differences in the East increased threefold in the late 1990s resulting in a substantial wage premium in the public sector. It is suggested that this premium is a result of the politically induced gap between pay and actual productivity. Furthermore, results vary greatly by gender indicating significantly larger female earnings differentials. Several institutional and political arguments are presented to explain this phenomenon.
    Keywords: public-private sector pay differential, decomposition, Germany
    JEL: J78 J31
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1696&r=lab
  14. By: Avner Ahituv (University of Haifa); Robert I. Lerman (American University, Urban Institute and IZA Bonn)
    Abstract: How marriage interacts with men’s earnings is an important public policy issue, given debates over programs to directly encourage healthy marriages. This paper generates new findings about the earnings-marriage relationship by estimating the linkages between marriage, work commitment, and wage rates. Unlike other studies of the marital wage premium for men, we examine how marital status and marital transitions affect hours worked as well as wage rates, take account of the feedback effect on wage rates and earnings associated with marriage effects on hours worked, estimate marriage effects on black and low skill men, control for several dimensions of selection, and follow men from age 17-40. We find that marriage increases men’s earnings by about 20 percent and also find a rise in wage rates and hours worked increases marriage. These findings suggest that both marriageenhancing and earnings-enhancing policies can set off a virtuous circle, in which marriage and earnings reinforce each other over time. Unmarried men who appear unable to support a family because of low current earnings are likely to become more adequate breadwinners once they marry. Thus, if proposed programs are able to increase the utility from and appreciation of marriage, they are likely to generate earnings gains for men as an important side effect.
    Keywords: labor supply, wage determinants, marriage, marital dissolution
    JEL: C23 J12 J15 J22 J31 J88
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1688&r=lab
  15. By: Christopher J. O'Leary (W.E. Upjohn Institute); Stephen A. Wandner (U.S. Department of Labor)
    Abstract: This paper summarizes state unemployment insurance job search policies based on a recent survey of states by the National Association of State Workforce Agencies. It then reviews research results on the effects of reemployment services on durations of insured unemployment. The paper documents how state administrative practices have changed and questions whether these changes may have affected monitoring of claimant compliance with work search requirements. Since state policies on job search and service referral can affect insured durations of unemployment, these policies can also affect the measured total unemployment rate. This paper reflects the opinions of the authors and does not necessarily reflect the positions or viewpoints of the W.E. Upjohn Institute for Employment Research or the U.S. Department of Labor.
    Keywords: unemployment insurance, work test, job search assistance, reemployment, public employment service
    JEL: I18 J68 H43
    Date: 2005–05
    URL: http://d.repec.org/n?u=RePEc:upj:weupjo:05-112&r=lab
  16. By: Francine D. Blau; Lawrence M. Kahn
    Abstract: Using 1994-2003 CPS data, we study gender and assimilation of Mexican Americans. Source country patterns, particularly the more traditional gender division of labor in the family in Mexico, strongly influence the outcomes and behavior of Mexican immigrants. On arrival in the United States, immigrant women have a higher incidence of marriage (spouse present), higher fertility, and much lower labor supply than comparable white natives; wage differences are smaller than labor supply differences, and smaller than comparable wage gaps for men. Immigrant women's labor supply assimilates dramatically: the ceteris paribus immigrant shortfall is virtually eliminated after twenty years. While men experience moderate wage assimilation, evidence is mixed for women. Rising education in the second generation considerably reduces raw labor supply (especially for women) and wage gaps with nonhispanic whites. Female immigrants' high marriage rates assimilate towards comparable natives', but immigrant women and men remain more likely to be married even after long residence. The remaining ceteris paribus marriage gap is eliminated in the second generation. Immigrants' higher fertility does not assimilate toward the native level, and, while the size of the Mexican American- white native fertility differential declines across generations, it is not eliminated.
    JEL: J1 J2 J3 J6
    Date: 2005–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:11512&r=lab
  17. By: Jean-Pierre Danthine; André Kurmann
    Abstract: We develop and analyze a structural model of effciency wages founded on reciprocity. Workers are assumed to face an explicit trade-off between the disutility of providing effort and the psychological benefit of reciprocating the gift of a wage offer above some reference level. The model provides a rationale for rent sharing - a feature that is very much present in the data but absent from previous formulations of the effciency wage hypothesis. This firm-internal perspective on effciency wages has important macroeconomic consequences: rent-sharing considerations promote wage rigidity, internal amplification and asymmetric responses to technology and demand shocks.
    Keywords: reciprocity; rent-sharing; effciency wages; wage rigidity
    JEL: E24 E32 J50
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:lau:crdeep:05.08&r=lab
  18. By: Diana Weinhold (London School of Economics); Paul J. Zak (Claremont Graduate University)
    Abstract: Institutions can affect individual behavior both via their efficiency impact and via their risk reducing mechanisms. However there has been little study of the relative importance of these two channels in how individuals choose between simultaneously extant institutions. This paper presents a simple model of institutional choice in a labor market when there is a risk/reward trade-off, and tests the predictions of the theory. Using a novel empirical approach that adapts an ARCH-in-mean to cross-sectional survey data from China, we find that risk and risk aversion are strongly related to the choice of a labor market institution. Further, risk and risk aversion are quantitatively more important than the sectoral wage differential in explaining employment institution choices. Specifically, we find that wage risk has two orders of magnitude greater impact on labor market institutional choice than the wage difference, with a one standard deviation increase in earnings risk reducing the number of workers choosing jobs in the private (risky) sector by 22%.
    Keywords: Institutions, Risk, Labor Market, Risk Aversion
    JEL: P3 J21 J40
    Date: 2005–08–06
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpot:0508004&r=lab
  19. By: Aimee Chin (Department of Economics, University of Houston); Chinhui Juhn (Department of Economics, University of Houston); Peter Thompson (Department of Economics, Florida International University)
    Abstract: Using a large, individual-level wage data set, we examine the impact of a major technological innovation — the development of powerful and economical steam engines — on skill demand and the wage structure among the merchant marine. Our data reveal a complex range of responses to the new technology. The new technology created a new demand for skilled workers, the engineers, while destroying other skills relevant only to sail. There were also contradictory effects among the less skilled. On the one hand, technological innovation may have been deskilling for production work since many experienced able-bodied seamen were replaced by laborers in the engine room. On the other hand, able-bodied seamen employed on steam earned a premium relative to their counterparts on sail. Our data allow us to identify this steam premium as a skill premium rather than a compensating differential. At the managerial level, we identify a skill premium on steam for mates, whose job became more complex on the larger vessels, but not for bosuns whose job did not. In aggregate, there is little change traditional measures of the skill premium, but such measures are too crude to illuminate the rich wage dynamics induced by a major technical innovation.
    Keywords: steam power, wage inequality, skill premium, technical change, merchant marine, Canada
    JEL: J31 N71
    Date: 2004–06
    URL: http://d.repec.org/n?u=RePEc:fiu:wpaper:0410&r=lab
  20. By: Basu, Arnab K; Chau, Nancy H; Kanbur, Ravi
    Abstract: In many countries, the authorities turn a blind eye to minimum wage laws that they have themselves passed. But if they are not going to enforce a minimum wage, why have one? Or if a high minimum wage is not going to be enforced one hundred percent, why not have a lower one in the first place? Can economists make sense of such phenomena? This paper argues that we can, if a high official minimum wage acts as a credible signal of commitment to stronger enforcement of minimum wage laws. We demonstrate this as an equilibrium phenomenon in a model of a monopsonistic labour market in which enforcement is costly, and the government cannot pre-commit to enforcement intensity. In this setting we also demonstrate the paradoxical result that a government whose objective function gives greater weight to efficiency relative to distributional concerns may end up with an outcome that is less efficient. We conclude by suggesting that the explanations offered in this paper may apply to a broad range of phenomena where regulations are imperfectly enforced.
    Keywords: dynamic consistency; equity and efficiency; minimum wage; non-complience
    JEL: D60 E61 J38
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5107&r=lab
  21. By: Asma Hyder (National Institute of Management Sciences, National University of Science & Technology, Pakistan); Barry Reilly (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)
    Abstract: This paper examines the magnitude of public/private wage differentials in Pakistan using data drawn from the 2001/02 Labour Force Survey. As in many other countries, public sector workers in Pakistan tend both to have higher average pay and education levels compared to their private sector counterparts. In addition, the public sector in Pakistan has both a more compressed wage distribution and a smaller gender pay gap than that prevailing in the private sector. Our empirical analysis suggests that about two-fifths of the raw differential in average hourly wages between the two sectors is accounted by differentials in average characteristics. The estimated ceteris paribus public sector ‘mark-up’ is of the order of 49% and is substantial by the standards of developed economies. The quantile regression estimates suggest that the ‘mark-up’ was found to decline monotonically with movement up the conditional wage distribution. In particular, the premium at the 10th percentile was estimated at 92% compared to a more modest 20% at the 90th percentile.
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:pru:wpaper:33&r=lab
  22. By: Tobias Linzert (European Central Bank and IZA Bonn)
    Abstract: This paper analyzes the relationship between unemployment and wage inflation for 10 of the euro area countries. The combination of low wage inflation and high unemployment in Europe is usually attributed to a rise in the natural rate of unemployment. Using a panel data approach, this paper models directly the specific structural determinants of the natural rate of unemployment that may account for a changing pattern in the unemployment inflation tradeoff. Moreover, it analyzes whether the responsiveness of wages crucially depends on the level of inflation and the level of unemployment. This allows to detect possible downward rigidity of wages and grease or sand effects of positive levels of inflation.
    Keywords: Phillips Curve, unemployment, panel analysis
    JEL: E24 E31 J64 C23
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1699&r=lab
  23. By: Ström, Sara (Institute for Futures Studies)
    Abstract: In Sweden, a dramatic fall in fertility coincided with recession and high unemployment during the 1990s. Recent research has shown that the precarious labor market has been one factor contributing to women postponing family formation. Studies have also shown that during the 1990s, the degree of negative psycho-social stress in work life increased in certain trades (care and education, and commerce) which are dominated by female employees. In the present paper, I focus on the interaction between psycho-social work conditions as defined by Robert Karasek and the likelihood of childbearing. As data material, the Swedish Level of Living Surveys of 1991 and 2000 are used. The research questions are: (1) Does job strain affect the likelihood of having the first, second and third child? Are there any differences between women and men? (2) Are there any differences in the likelihood of having children between individuals employed in trades characterized by high levels of jobs strain vs low levels of job strain? Are there any differences between men and women? The results indicate that women working in high-strain jobs have a lower likelihood of having the first child compared with women working in low-strain jobs, even when several important factors are controlled for. No significant associations between job strain and the timing of the second and third child are found for women. For men, no significant associations between job strain and the births of children are found, at least not when relevant controls are made. Analyses of childbearing and trade indicate that women working in commerce are more likely to have their first child compared with women working in manufacturing. For men, the results indicated that those working in public service are more likely to enter fatherhood compared with men working in manufacturing.
    Keywords: childbearing; psycho-social work life conditions; fertility - recession
    JEL: J13
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:hhs:ifswps:2005_013&r=lab
  24. By: Pieter A. Gautier (Free University of Amsterdam, Tinbergen Institute and IZA Bonn); Coen N. Teulings (SEO, University of Amsterdam, Tinbergen Institute, CEPR and IZA Bonn); Aico van Vuuren (Free University of Amsterdam)
    Abstract: We characterize the equilibrium of a search model with a continuum of job and worker types, wage bargaining, free entry of vacancies and on-the-job search. The decentralized economy with monopsonistic wage setting yields too many vacancies and hence too low unemployment compared to first best. This is due to a business-stealing externality. Raising workers’ bargaining power resolves this inefficiency. Unemployment benefits are a second best alternative to this policy. We establish simple relations between the losses in production due to search frictions and wage differentials on the one hand and unemployment on the other hand. Both can be used for empirical testing.
    Keywords: assignment, on-the-job search, search frictions, efficiency, optimal UI benefits
    JEL: J3 J6
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1687&r=lab
  25. By: Duvander, Ann-Zofie (Institute for Futures Studies); Ferrarini, Tommy (Stockholm University); Thalberg, Sara (Stockholm University)
    Abstract: Sweden was the first country to introduce paid parental leave also to fathers in 1974, and this legislation has since then continuously been reformed in order to bring about a more equal parenthood. This study sets out to discuss the Swedish parental leave system and identify achievements, policy dilemmas and reform alternatives in a European perspective. The structure of parental insurance legislation, with earnings-related benefits and a long leave period, is often seen as a main explanation why Sweden has been able to combine relatively high fertility levels with high female labour force participation rates and low child poverty. In the perspective of changing demographic structures in Europe, with declining fertility levels and a growing number of elderly, the strengthening of dual earner family policies, including parental insurance legislation, may mitigate macro-economic and demographic problems by increasing gender equality and decreasing the work-family conflict. Despite the positive consequences, unresolved questions exist in the present parental leave legislation. The flexibility of the Swedish system, which still has extensive transferable leave rights, has the consequence that the lion’s share of parental leave days is still taken by mothers, among other things making it difficult for women to compete on equal terms with men in the labour market. Consequently, the gender-based division of parental leave may contribute to a preservation of traditional gender roles and inequalities. Another problem in the Swedish system is the work requirement for eligibility that excludes students and others with weak labour market attachment from the earnings-related benefits, possibly inflicting on the postponement of parenthood. Raising the minimum benefit could be one solution to enable childbearing among persons with weak labour market attachment, but this would also affect the economic incentives for paid work, and thus weaken the dual earner model.
    Keywords: Parental leave; gender equality; reform challenges
    JEL: J13
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:hhs:ifswps:2005_011&r=lab
  26. By: Jaume Garcia (Universitat Pompeu Fabra); Climent Quintana- Domeque (Princeton University)
    Abstract: In this article we present the first empirical analysis on the associations between body size, activity, employment and wages for several European countries. The main advantage of the present work with respect to the previous literature is offered by the comparability of the data and its large geographical coverage. According to our results, for Spanish women, being obese is associated with both a 9% lower probability of being employed and wage, while for Swedish and Danish, obesity is associated with a 12% lower probability of being employed and a 10% lower wage respectively. In Belgium, obesity is associated with a 16% lower probability of being employed for men. These robust estimates are strongly informative and may be used as a simple statistical rule of thumb to decide the countries in which lab and field experiments should be run.
    Keywords: BMI; Employment; Physical Discrimination; Obesity; Wages.
    JEL: J
    Date: 2005–08–06
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpla:0508002&r=lab
  27. By: Saint-Paul, Gilles
    Abstract: Trade liberalization is often met with sharp opposition. Recent examples include the so-called ‘Bolkestein’ directive, which allows service providers from a given EU member to temporarily work in another member country. One way to view such a reform is that it simply widens the range of goods that are tradable. This kind of reform is analysed in a two-country Dornbusch-Fischer-Samuelson style model, where labour cannot relocate to another sector upon a non-expected increase in the range of goods that can be traded. The effect of liberalization on the terms of trade tend to favour the poorer country (the ‘East’), if (as assumed) the most sophisticated goods are tradable before reform. Second, under ex-post liberalization, there exists a class of workers in the West who are harmed because they face competition from Eastern workers and cannot relocate to other activities. But if the East’s economy is relatively small, their wage losses are not very large. Things are different, however, if there exist asymmetries in labour market institutions, such that upon reform, labour can relocate in the East but not in the West. Some workers in the West can then experience very large wage losses. Thus, rigid labour markets in the West magnify opposition to reform there.
    Keywords: bolkestein directive; comparative advantage; european integration; labour market institutions; labour mobility; terms of trade; trade liberalization
    JEL: F11 F13 F16
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5100&r=lab
  28. By: Martin Jorgensen; Deborah Roseveare
    Abstract: <P>Immigration could offer one way for Denmark to expand its labour supply, thereby lowering the dependency ratio, at least for some time, and easing the task of ensuring fiscal sustainability. However, these beneficial effects are obtained only if immigrants are in work. Yet a significant proportion of immigrants have found it quite difficult to get work in Denmark, while the country has been relatively unattractive to high-skilled foreigners. Furthermore, the structure of the economy not only makes it difficult for low-skilled foreigners to gain a foothold in the labour market, but also provides generous social benefits that have caught many of the least skilled immigrants in a benefit trap. A heightened appreciation of these problems, including a tighter focus on the economic situation of the immigrants already present, have underpinned the main changes in policies on immigration in recent years ...</P> <P>L’immigration pourrait être, pour le Danemark, un moyen d’accroître son offre de main-d’œuvre. Cela ferait baisser le taux de dépendance, pour quelque temps du moins, et serait propice à la viabilité budgétaire. Toutefois, ces effets bénéfiques ne se font sentir que si les immigrants sont pourvus d’un emploi. Or, un pourcentage non négligeable de cette population a eu de graves difficultés à trouver du travail dans ce pays qui, par ailleurs, n’attire que relativement peu de travailleurs hautement qualifiés. De surcroît, non seulement la structure de l’économie danoise permet difficilement aux étrangers faiblement qualifiés de s’insérer sur le marché du travail, mais le pays est généreux en matière d’octroi de prestations sociales, ce qui fait que beaucoup d’immigrants les moins qualifiés se sont trouvés pris au piège de l’assistance. Ces dernières années, les principaux changements apportés aux mesures concernant l’immigration ont été inspirés par une perception plus aigue de ces ...</P>
    Keywords: Denmark, Danemark, fiscal sustainability, immigration patterns, demographic projections, participation rates, integration policies, language skills, wage compression, benefit traps, tendances des flux d’immigration, perspectives demographiques, taux de participation, politiques d’intégration, compétences linguistiques, compression des salaries, piège des prestations socials, viabilité budgétaire
    JEL: H53 H6 I38 J11 J15 J21 J61
    Date: 2004–04–30
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:368-en&r=lab
  29. By: Linda A. Bell (Haverford College and IZA Bonn)
    Abstract: Using data on Executive Compensation from Standard and Poor's ExecuComp, this paper explores the gender gap in top executive jobs and the effect of women CEOs, Chairs, and Directors on the pay of other women executives. The results show a narrowing of the uncorrected gender pay gap from the mid-1990s. Women top executives earn between 8% to 25% less than male executives after controlling for differences in company size, occupational title, and industry. The magnitude of the gender pay gap is statistically related to the gender of the Chief Executive and Corporate Board Chair. Women CEO and Board Chairs bring more top women and at higher pay than is found in non-women-led firms. Specifically, female executives in women-led firms earn between 10-20% more than comparable executive women in male-led firms and are between 3-18% more likely to be among the highest five paid executives in these firms as well. The paper thereby provides strong empirical evidence that women leaders are associated with positive outcomes for women executives in substantive and important ways.
    Keywords: executive compensation, gender discrimination, labor market institutions
    JEL: J11 J16 J33 J70 J71 J78
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1689&r=lab
  30. By: Béatrice d’Hombres (University of Padova); Giorgio Brunello (University of Padova, CESifo and IZA Bonn)
    Abstract: We use data from the European Community Household Panel to investigate the impact of obesity on wages in 9 European countries, ranging from Ireland to Spain. We find that the common impact of obesity on wages is negative and statistically significant, independently of gender. Given the nature of European labor markets, however, we believe that a common impact is overly restrictive. When we allow this impact to vary across countries, we find a negative relationship between the BMI and wages in the countries of the European "olive belt" and a positive relationship in the countries of the "beer belt". We speculate that such difference could be driven by the interaction between the weather, BMI and individual (unobserved) productivity.
    Keywords: wages, body mass index, Europe
    JEL: I12 J3
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1704&r=lab
  31. By: Anja Deelen
    Abstract: In this paper, we analyse the employers' decision to opt out of the public disability insurance (DI) system. For the empirical analysis we use an extensive panel of Dutch employers for the period 2000-2002. We find that cross-subsidies employers pay or receive under the current public insurance system of experience rating contribute to the opting out decision. Since cross-subsidies are risk related, this is an indication for the presence of adverse selection: high risk (cross-subsidised) firms tend to remain publicly insured, while low risk (cross subsidising) firms tend to opt out. This finding is supported by the fact that risk related characteristics such as the sector of industry and the composition of the work force by age and gender contribute to the explanation of the opting-out decision. Adverse selection could be diminished by setting public premiums in such a way that they are more actuarial fair in the long run. As a result, the risk profile of firms opting out will become more similar to that of firms not opting out.
    Keywords: adverse selection; cross-subsidies; disability insurance; premium differentiation
    URL: http://d.repec.org/n?u=RePEc:cpb:discus:46&r=lab
  32. By: Barry Reilly (Poverty Research Unit at Sussex, Department of Economics, University of Sussex); Puja Vasudeva Dutta (National Council of Applied Economic Research, New Delhi)
    Abstract: This paper uses nationally representative employment surveys to examine the magnitude of the gender pay gap in India and its relationship to a set of trade liberalisation measures. Separate wage equations, corrected for selection bias, are estimated for men and women in wage employment. Conventional index number procedures are used to decompose the gender pay gap into ‘endowment’ and ‘treatment’ components. The ‘treatment’ components comprise about one-third of the overall wage gap – a result in comport with the existing evidence for India. There is some evidence that the ‘treatment’ or residual components are declining over time but the point estimates for the differentials in these components between the initial and terminal years of our analysis are found to be imprecisely determined. A methodology suggested by Horrace and Oaxaca (2001) is used to compute industry specific gender pay gaps and their relationship with selected trade-related measures (e.g., tariff rates and trade ratios) is then examined econometrically within a GLS framework. We find little evidence that the trade-related measures are important determinants of the industry-level gender pay gap and appear to have exerted a relatively benign influence on the evolution of the industry gender pay gap in India over the last two decades.
    Keywords: gender pay gap, trade liberalisation, India
    JEL: J71 F16
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:pru:wpaper:32&r=lab
  33. By: Maurizio Bovi (Institute for Studies & Economic Analyses ISAE)
    Abstract: Using the Hodrick-Prescott filter, this paper examines the cyclical properties of the Italian labour market. Its main contribution is the empirical analysis of three different labour inputs - regular employees, regular self-employed and underground workers. Results from VAR models support the widespread view that the shadow employment functions as an improper tool for increasing the flexibility of the labour market. While the contemporaneous correlation between shadow labour and output is significant, as time passes their association looses momentum. The opposite is found for regular employees, which show significant positive correlations only with lagged output gaps. Somewhat puzzling, self- employment seems to be the less sensitive to the course of business cycles. The skewness of input distributions suggests that hiring employees is easier than firing them, while this can not be said for the other two labour gaps. Disaggregate data tell different stories. For instance, in the manufacturing sector the hidden employment is not correlated with the output, while in the trade sector the acyclical input turns out to be the recorded employees. In the transport industry, where no labour input follow the cycle, regular employees are more fired than hired.
    Keywords: Underground economy; VAR models; Labour Flexibility, Business Cycle.
    JEL: C32 C53 H26 J30
    Date: 2005–07–28
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpla:0507011&r=lab
  34. By: Thierry Lallemand (DULBEA, Université libre de Bruxelles, Brussels); Robert Plasman (DULBEA, Université libre de Bruxelles, Brussels); François Rycx (DULBEA, Université libre de Bruxelles, Brussels)
    Abstract: The objective of this paper is twofold. First, we analyse the structure of wages within and between Belgian firms. Next, we examine how the productivity of these firms is influenced by their internal wage dispersion. To do so, we use a large matched employer-employee data set (i.e., a combination of the 1995 ‘Structure of Earnings’ and ‘Structure of Business’ Surveys). On the basis of the methodology developed by Winter-Ebmer and Zweimüller (1999), we find that within-firm wage dispersion has a positive and significant effect on firm productivity. This result is robust to controls for individual and firm characteristics as well as to instrumenting the wage inequality variable. Findings also suggest that the intensity of this effect is stronger within firms with: i) a majority of blue-collar workers, and ii) a high degree of monitoring. These results are more in line with the ‘tournament’ models than with the ‘fairness, morale and cohesiveness’ models.
    Keywords: Wage structure, Personnel economics, Matched employer-employee data.
    JEL: J24 J31 J41
    Date: 2005–05
    URL: http://d.repec.org/n?u=RePEc:dul:wpaper:05-14rs&r=lab
  35. By: Torberg Falch; Marte Rønning
    Abstract: Evidence on teacher behavior is essential for the understanding of the performance of school systems. In this paper we utilize rich data to study the teachers’ quit decision in Norway. We distinguish between decisions to move between public schools within school districts, to another school district in the same labor market region, across labor market regions, and whether to leave public schools. The results indicate that the quit propensity to all four destinations is negatively related to student performance. The result is qualitatively independent of whether student performance is measured by exam results or teacher graduation.
    Keywords: teacher turnover, student achievement, family status, non-pecuniary factors
    JEL: H42 I29 J44
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_1469&r=lab
  36. By: Jonathan Gershuny (Institute for Social and Economic Research)
    Abstract: There is a paradoxical relationship between, on one hand, the observation that, in general, people feel busier now than they did previously, and on the other, the evidence (from time diary data) that societies have somewhat less, or at least overall, no more work than they had previously. But the connections between amounts of work and feelings of busyness are in fact neither direct nor simple. In what follows, a line of theoretical argument from Thorsten Veblen, and dating from the end of the 19th century, concerning the social construction of leisure, is redeployed, in the context of the changed economic circumstances at the start of the 21st century, to the construction of feelings of busyness. Work, not leisure, is now the signifier of dominant social status. Evidence from three UK time diary studies (1961, 1983/4 and 2001) shows that over this period the Veblen-type negative relationship between social status (as indicated by human capital) and work time is reversed—high human capital is now associated with longer hours of work. This is consistent with the Veblen-derived theoretical line; however a complete demonstration of the theoretical position would require historical evidence on both time allocation and feelings of busyness for the same individuals, which is not available for the UK.
    Keywords: changes in time-use, family, leisure, social differentiation, social status
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:ese:iserwp:2005-09&r=lab
  37. By: Francois, Patrick
    Abstract: Despite the potential for free-riding, workers motivated by ‘making a difference’ to the mission or output of an establishment may donate labour to it. When the establishment uses performance related compensation (PRC), these labour donations closely resemble a standard private provision of public goods problem, and are not rational in large labour pools. Without PRC, however, the problem differs significantly from a standard private provision of public goods situation. Specifically, in equilibrium: there need not be free-riding, decisions are non-monotonic in valuations, and contribution incentives are significant even in large populations. When PRC is not used, the establishment tends to favour setting low wages which help to select a labour force driven by concern for the firm’s output. Expected output can actually fall with the wage in this situation. For sufficiently high levels of risk aversion, performance related pay can yield less expected output than when compensation is output independent.
    Keywords: incentive schemes; privately provided public goods; public sector employment; voluntarism
    JEL: H11 H41 H83 J45
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5158&r=lab
  38. By: Charles L. Baum
    Abstract: Today, many pregnant women take a brief period of time off from work to give birth. In this paper, I identify the effects of pregnancy employment on health at birth. My initial results show that pregnancy employment has beneficial effects. However, these effects often become statistically insignificant when I control for earnings from pregnancy employment, when I exclusively examine women employed prior to the pregnancy, and when I examine siblings in fixed effects models. I conclude that beneficial effects of pregnancy employment are partially due to increased family income via earnings during the pregnancy and partially due to unobserved heterogeneity. There is no evidence that increased female labor force participation adversely affects health at birth.
    Keywords: Labor Supply; Pregnancy Employment; Health at Birth
    JEL: J1 J2 J3
    Date: 2004–09
    URL: http://d.repec.org/n?u=RePEc:mts:wpaper:200408&r=lab
  39. By: Jans, Ann-Christin (Institute for Futures Studies)
    Abstract: During the last three decades, there has been a rapid increase in female labor force participation rates. This increase has gradually changed the family concept. Today, women and men both work and contribute to family earnings so that dual-earner households has become the rule rather the single-earner households. A popular view is that the growth in female labor supply has reduced the incentives to migrate for families were both spouses work. With both spouses working migration decisions becomes a rather complicated process. In particular if both spouses are to find new jobs, regions has to be diversified enough to offer career opportunities for both spouses. Children are generally supposed to trigger local migration, but to decrease long distance migration. <p> The objective of this paper is to examine how family formation, the arrival of children and family dissolution has influenced migration rates during the period 1970-2000. Determinants of migration are analyzed using Cox proportional hazard regressions. The empirical analysis is based on the longitudinal database LINDA expanded with information on births for children and when geographical moves took place in time. <p> According to the results family formation, the presence of children and family dissolutions has all been important for the interregional migration patterns in Sweden during the last three decades. The presence of family ties thereby seems to be of vital importance for the decision to migrate. The findings indicate that family formation and presence of children lowers the propensity for migration while family dissolution seems to trigger migration. Furthermore, the estimations indicate that migration propensities have decreased over the three last decades. This finding might be related to the rapid increase in female labor force participation rates during the observed period.
    Keywords: Family relations; migration rates 1970-2000
    JEL: J00 J12 J60
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:hhs:ifswps:2005_012&r=lab
  40. By: César Alonso-Borrego; Jesús Fernández-Villaverde; José E. Galdón-Sánchez
    Abstract: Job security provisions are commonly invoked to explain the high and persistent European unemployment rates. This belief has led several countries to reform their labor markets and liberalize the use of fixed-term contracts. Despite how common such contracts have become after deregulation, there is a lack of quantitative analysis of their impact on the economy. To fill this gap, we build a general equilibrium model with heterogeneous agents and firing costs in the tradition of Hopenhayn and Rogerson (1993). We calibrate our model to Spanish data, choosing in part parameters estimated with firm-level longitudinal data. Spain is particularly interesting, since its labor regulations are among the most protective in the OECD, and both its unemployment and its share of fixed-term employment are the highest. We find that fixed-term contracts increase unemployment, reduce output, and raise productivity. The welfare effects are ambiguous.
    JEL: E24 C68 J30
    Date: 2005–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:11519&r=lab
  41. By: Jeffrey Carpenter (Middlebury College and IZA Bonn); Erika Seki (University of Aberdeen)
    Abstract: Models of job tournaments and competitive workplaces more generally predict that while individual effort may increase as competition intensifies between workers, the incentive for workers to cooperate with each other diminishes. We report on a field experiment conducted with workers from a fishing community in Toyama Bay, Japan. Our participants are employed in three different aspects of fishing. The first group are fishermen, the second group are fish wholesalers (or traders), and the third group are staff at the local fishing coop. Although our participants have much in common (e.g., their common relationship to the local fishery and the fact that they all live in the same community), we argue that they are exposed to different amounts of competition on-the-job and that these differences explain differences in cooperation in our experiment. Specifically, fishermen and traders, who interact in more competitive environments are significantly less cooperative than the coop staff who face little competition on the job. Further, after accounting for the possibility of personality-based selection, perceptions of competition faced on-the-job and the treatment effect of job incentives explain these differences in cooperation to a large extent.
    Keywords: field experiment, cooperation, social disapproval, social preference, competition, Japan, fishing
    JEL: C90 C93 H41 M54 Z13
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp1691&r=lab
  42. By: Li, Fei; Ueda, Masako
    Abstract: We study the implication of the standard principal-agent theory developed by Holmstrom and Milgrom (1987) on the endogenous matching of CEO and firm. We show that a CEO with low disutility of effort, low risk aversion, or both should manage a safer firm in the matching equilibrium, and that a CEO in a safer firm should receive a higher compensation than average. Nevertheless, these predictions are not supported by data; proxies for low disutility such as educational achievement and experience are either not related to firm risks or significantly related but in the direction opposite to that predicted by the theory. CEOs of safer firms are paid less than average, again contrary to the standard principal-agent theory.
    Keywords: Principal-Agent problem; sorting
    JEL: G39
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5119&r=lab
  43. By: Francesca Ceccato; Eleonora Cimino; Leonello Tronti
    Abstract: <P>Over the past years, non-standard, flexible employment contracts have gained in importance in many OECD countries. This has made it difficult for statisticians to apply standard classifications of working arrangements to measure and analyse labour market developments. This paper presents a new classification of atypical working arrangements, developed by Istat, the Italian Statistical Institute. The paper also uses this classification to quantify the level of atypical jobs and their development between 1996 and 2002 ... </P> <P>Au cours des dernières années, les contrats de travail flexibles, non standards, ont pris de l’importance dans beaucoup des pays de l’OCDE. Cela rend difficile aux statisticiens l’utilisation des classifications standard des organisations de travail pour la mesure et l’analyse des développements du marché du travail. Cette étude présente une nouvelle classification des différentes organisations de travail atypiques, développée par Istat, l’Institut Statistique Italien. L’étude utilise aussi cette classification afin de quantifier le nombre de contrats de travail atypiques et leur développement entre 1996 et 2002 ...</P>
    Date: 2004–12–02
    URL: http://d.repec.org/n?u=RePEc:oec:stdaaa:2004/1-en&r=lab

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