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on Labour Economics |
| By: | Mukherjee, Dipa |
| Abstract: | The last decade has witnessed greater participation of women in the labour market, especially in new arenas of economic activity. While opportunities have increased, traditional biases against women still exist, both while accepting women as workers and while wage setting. This paper explores the gender bias in the new economy in India and examines what part of it can be explained by differences in endowments and what part is due to discrimination. The New Economy has been identified in terms of high growth and high share in total employment in recent times. It is observed that women employment is growing faster than that of men, though the virtue of it is questionable because of lower wage payments. For a large part of the new economy a trade-off is observed between women employment expansion and their wage condition. There also exists an established sector where women have traditionally been accepted and are having stable employment and wage condition. In few sunrise sectors of the new economy women are enjoying both expanding employment and improving wage conditions. Though endowment plays a major role in determining absorption of workers, discrimination against women is also substantial leading to entry barrier. Most of the gender differences in wages are due to discrimination and only a small part is attributable to endowment gaps. This prompts for taking appropriate policies in the form of promotion of skill formation and mobilisation of women worker groups for better bargaining power. |
| Keywords: | Gender Disparity; Employment; Wages; Occupational Choice; Decomposition; New Economy |
| JEL: | J31 J21 J24 J7 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12760&r=lab |
| By: | Marco Caliendo; Arne Uhlendorff |
| Abstract: | This paper analyzes the mobility between self-employment, wage employment and non-employment. Using data for men in West Germany, we find strong true state dependence in all three states. Moreover, compared to wage employment, non-employment increases the probability of self-employment significantly, and selfemployment goes along with a higher risk of future non-employment. |
| Keywords: | Self-Employment, State Dependence, Labor Market Dynamics, Unemployment |
| JEL: | J64 L26 C23 C25 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp152&r=lab |
| By: | David Autor; David Dorn |
| Abstract: | High- and low-wage occupations are expanding rapidly relative to middle-wage occupations in both the U.S. and the E.U. We study the reallocation of workers from middle-skill occupations towards the tails of the occupational skill distribution by analyzing changes in age structure within and across occupations. Because occupations typically expand by hiring young workers and contract by curtailing such hiring, we posit that growing occupations will get younger while shrinking occupations will 'get old.' After verifying this proposition, we apply this observation to local labor markets in the U.S. to test whether markets that were specialized in middle-skilled occupations in 1980 saw a differential movement of both older and younger workers into occupations at the tails of the skill distribution over the subsequent 25 years. Consistent with aggregate trends, employment in initially middle-skill-intensive labor markets hollowed-out between 1980 and 2005. Employment losses among non-college workers in the middle of the occupational skill distribution were almost entirely countered by employment growth in lower-tail occupations. For college workers, employment losses at the middle were offset in roughly equal measures by gains in the upper- and lower-tails of the occupational skill distribution. But gains at the upper-tail were almost entirely limited to young college workers. Consequently, older college workers are increasingly found in lower-skill, lower-paying occupations. |
| JEL: | E24 J11 J21 J24 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14652&r=lab |
| By: | Giovanni Peri; Chad Sparber (University of California, Davis and NBER, Colgate University) |
| Abstract: | Economic debate about the consequences of immigration in the US has largely focused on how influxes of foreign-born labor with little educational attainment have affected similarly-educated native-born workers. Surprisingly few studies, however, analyze the effect of immigration within the market for highly-educated labor. We use O*NET data on job characteristics to assess whether native-born workers with graduate degrees respond to the presence of highly-educated foreign-born workers by choosing new occupations with different skill content. We find that immigrants with graduate degrees specialize in occupations demanding quantitative and analytical skills, whereas their native-born counterparts specialize in occupations requiring interactive and communication skills. Native employees leave occupations with a high proportion of highlyeducated immigrants for occupations with less analytical and more communicative content. For completeness, we also assess whether immigration causes highly-educated natives to lose their jobs or move across state boundaries. We no evidence that the former occurs, but mixed evidence for the latter response. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:0813&r=lab |
| By: | Nandi A (Institute for Social and Economic Research) |
| Abstract: | U.S. public policy promotes both marriage and labor market participation as strategies for improving the economic welfare of low-income women and their children. In this essay, I ask which of these mechanisms (marriage or employment) leads to greater economic gains— especially for those women who are predisposed towards poverty. In light of the dramatic rise in cohabitation rates in recent years, I also include cohabitation as a third mechanism for improving well-being. Using data from the 1979 National Longitudinal Survey of Youth, I estimate a fixed-effects model of household income (adjusted for household composition) to assess the within-person gains associated with changes in employment and marital status; I allow the effects of employment on household income to differ for single, cohabiting, and married women. Focusing first on “poor” women (those who ever received welfare), I predict that the log household income of single, nonemployed women increases by 0.80 if they enter a cohabiting union, 1.04 if they marry, 0.76 if they work part-time (1000 hours/year), and 1.16 if they work full-time (2000 hours/year). The finding that the biggest predicted gain is from entering full-time employment (while remaining single) reflects the fact that the expected earnings of these low-wage women exceeds the share of adjusted earnings that they can be expected to gain by marrying a (typically low-wage) man. When I consider transitions of women who are already employed part-time, I find that their expected gains from cohabitation and marriage are virtually identical (0.48 and 0.47, respectively) and that union formation now has a greater expected benefit than moving to full-time employment, which I predict raises log income by 0.40. When I focus on nonpoor women, I find that single, part-time employed women are expected to gain 0.64, 0.56 and 0.54, respectively, when they enter a cohabiting union, marry and move to full-time employment; each of these gains is greater than what I predict for their poor counterparts. This is not surprising given the higher earnings potential of these women as well as that of their spouses and partners. |
| Date: | 2008–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-23&r=lab |
| By: | Antonio Accetturo (Bank of Italy, Milan Branch); Luigi Infante (Bank of Italy, Economic and Financial Statistics Department) |
| Abstract: | The aim of this paper is to assess the relationship between individual skills and labour market performance of immigrants residing in Lombardy during the period 2001-2005. We use a recent dataset collected by the NGO ISMU, which includes information on individual characteristics and the legal status of each immigrant. Our results show that returns on schooling are positive and range from 0.8 per cent to 0.9 per cent, a figure that is much lower than the one estimated for native Italians. This result is robust to a number of specifications and tests. In particular, it is not influenced by the legal status of the alien or by a possible self-selection in the labour supply. Moreover, although more talented immigrants tend to self-select in the Lombardy region compared with the other Italian regions, their return on schooling remains low compared with natives. We also show that a certain heterogeneity exists across educational levels and countries of origin: immigrants from Eastern Europe are better able to exploit their human capital, especially when they hold a university degree, while the school-wage profile of Latin Americans and Asians is basically flat. Finally, there is some evidence of a cohort effect in migration, but this tends to impact on the return on experience rather than on the return on schooling. |
| Keywords: | Immigration, return on schooling, return on experience |
| JEL: | J31 O15 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_695_08&r=lab |
| By: | Andrew Clark; Andreas Knabe; Steffen Rätzel |
| Abstract: | The social norm of unemployment suggests that aggregate unemployment reduces the wellbeing of the employed, but has a far smaller effect on the unemployed. We use German panel data to reproduce this standard result, but then suggest that the appropriate distinction may not be between employment and unemployment, but rather between higher and lower levels of labour-market security. Those with good job prospects, both employed and unemployed, are strongly negatively affected by regional unemployment. However, the insecure employed and the poor-prospect unemployed are less negatively, or even positively, affected. We use our results to analyse labour-market inequality and unemployment hysteresis. |
| Keywords: | Unemployment, Externalities, Job Insecurity, Well-Being |
| JEL: | D84 J60 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp153&r=lab |
| By: | Denis Drechsler |
| Abstract: | Have you ever wondered how many women are in paid employment compared to men? We know they get unequal wages, but just how unequal is their pay? Meanwhile, who are the managers, and what is their gender makeup? Are women and men entering the higher levels of state in equal numbers? |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:devaac:82-en&r=lab |
| By: | Carsten Ochsen (University of Rostock) |
| Abstract: | This paper analyzes how the aging labor force a¤ects the unem- ployment rate at the regional level in Germany. A theoretical model of equilibrium unemployment with spatial labor market interactions is used to study the e¤ects of age-related changes in job creation and job destruction. Using data for 343 districts, we then examine empirically the consequences of an aging labor force for the local labor markets in Germany. We apply di¤erent estimation techniques to a spatial and time dynamic panel data model. According to the estimates, aging causes an increase in job destruction. In addition, aging in the local labor market increases job creation, while the spatial aging e¤ect on job creation in the local district is negative. |
| Keywords: | Regional Unemployment, Vacancies and Separations, Job Creation, Regional Mobility, Spatial Interactions and Matching, Aging of the Labor Force |
| JEL: | J64 J63 J23 J61 R12 J10 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ros:wpaper:102&r=lab |
| By: | Solera C (University of Torino) |
| Abstract: | This paper compares Italy and Great Britain and uses event history data and methods to investigate changes across cohorts in the effect of family responsibilities on womenÂ’s transitions in and out of paid work. My findings show that womenÂ’s attachment to paid work has increased and that education and/or class has marked the divide, as predicted by human capital theory. However, the effects of marriage and motherhood are, ceteris paribus, stronger in a residualist-liberal welfare regime such as the British one. In Italy, where demand for labour is relatively low and gender role norms are quite traditional, reconciliation policies are weak but largely compensated by intergenerational and kinship solidarity, fewer women enter paid work, but when they do so, they interrupt less when becoming wives or mothers. |
| Date: | 2008–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-22&r=lab |
| By: | Bolli, Thomas (Swiss National Bank); Zurlinden, Mathias (Swiss National Bank) |
| Abstract: | This paper presents results on human capital accumulation for the Swiss economy. We find that the index of labour quality has grown at a rate of 0.5% per year from 1991 to 2006. The main sources are the growth in average levels of education and the passing of the baby boom cohort through the age structure of the workforce. Projections over the period 2006-2050 suggest that labour quality growth will slow down with time. We also calculate a quality-adjusted unemployment rate and find that the unemployment rate is reduced by about 0.3 pp when human capital accumulation is taken into account. |
| Keywords: | human capital; labour quality; unemployment rate |
| JEL: | E24 J24 J31 |
| Date: | 2008–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:snbwpa:2008_013&r=lab |
| By: | Garcia-serrano C (Universidad de Alcalá) |
| Abstract: | Using a Spanish survey, this paper investigates the relationship between firm size and working conditions, and whether firm size differences in workersÂ’ job satisfaction can be accounted for by differences in their work environment. The results indicate that: (1) workers in larger firms have a significantly lower level of autonomy and, in general, face worse working conditions; (2) working in large firms has no statistically significant effect on job satisfaction after controlling for working conditions; and (3) no systematic differences exist in worker mobility across firm-size categories. We conclude that observed wage differentials by firm size are utility-equalizing, so they are due to differences in working conditions. |
| Date: | 2008–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-30&r=lab |
| By: | Conti G (Department of Economics, University of Chicago); Pudney S (Institute for Social and Economic Research) |
| Abstract: | Surveys differ in the way they measure satisfaction and happiness, so comparative research findings are vulnerable to distortion by survey design differences. We examine this using the British Household Panel Survey, exploiting its changes in question design and parallel use of different interview modes. We find significant biases in econometric results, particularly for gender differences in attitudes to the wage and hours of work. Results suggest that the common empirical finding that women care less than men about their wage and more about their hours may be an artifact of survey design rather than a real behavioural difference. |
| Date: | 2008–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-39&r=lab |
| By: | Christian Dustmann; Albrecht Glitz; Tommaso Frattini (Centre for Research and Analysis of Migration (CReAM), Department of Economics, UCL, Department of Economics, Universitat Pompeu Fabra) |
| Abstract: | In the first part of this paper, we present a stylised model of the labour market impact of immigration. We then discuss mechanisms through which an economy can adjust to immigration: changes in factor prices, output mix and production technology. In the second part, we explain the problems of empirically estimating how immigration affects labour market outcomes of the resident population and review some strategies to address these. We then summarise some recent empirical studies for the UK and other countries. We conclude with an outlook of what we believe are important avenues for future research. |
| Keywords: | Migration, Labour Market Impact, Wage Distribution |
| JEL: | J24 J31 J61 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:0811&r=lab |
| By: | Kelly, Elish (ESRI); McGuinness, Seamus (ESRI); O'Connell, Philip J. (ESRI) |
| Abstract: | This paper uses data from the 2003 and 2006 National Employment Surveys to analyse the public-private sector wage gap in Ireland. In particular, we investigate the impact of awards implemented under a number of wage setting institutions on the pay differential. These include the pay increases awarded by the Public Service Benchmarking Body in its first report and the increases given to higher-level posts in the public sector by the Review Body on Higher Remuneration in the Public Sector, Reports No. 40 and 41. The pay increases that were awarded under the Social Partnership process in Sustaining Progress and the Mid-term Review of Part Two of Sustaining Progress are also captured in the data used. The results indicate that the public sector pay premium increased dramatically from 7.7 to 23.5 per cent between 2003 and 2006. Furthermore, we found that by 2006 senior public service workers earned approximately 10 per cent more than their private sector counterparts, while those in lower-level grades earned between 24 and 32 per cent more. The public premium results derived in this paper relating to March 2006 predate the payment of the two most recent Social Partnership wage deals, along with the pay increases awarded in the second Benchmarking exercise and by the Review Body on Higher Remuneration in Reports No. 42 and 43. The results presented raise serious questions with respect to the justification for any further boosts to the pay levels of public sector workers. |
| Keywords: | Employer-Employee Linked Data/Ireland/Public-Private Sector Pay Gap/Wage Setting Institutions |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp270&r=lab |
| By: | Garcia-serrano C (Universidad de Alcalá); Hernanz V (Universidad de Alcalá); Toharia L (Universidad de Alcalá) |
| Abstract: | Using data from a Spanish register on work-related accidents, this paper analyses the effect of contract types on two consequences of accidents: the probability of suffering a serious/fatal accident and the number of working days lost after an accident has happened. The focus is on the difference among temporary workers hired through temporary help agencies, direct temporary workers and open-ended workers. We find that workers hired through temporary help agencies are less likely to suffer serious/fatal accidents and the durations of their absences are shorter when they are, compared with workers holding either open-ended contracts or “direct” temporary contracts once personal, job and accident characteristics are controlled for. |
| Date: | 2008–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-28&r=lab |
| By: | Paolo Sestito (Bank of Italy); Eliana Viviano (Bank of Italy) |
| Abstract: | We use the Italian Labour Force Survey and the European Household Panel Survey to analyse the distribution of the reservation wages reported by jobseekers. In Italy, reservation wages appear to be higher in the South - the low income and high unemployment area of the country - than in the North and Centre. A similar, rather counterintuitive, pattern, however, can also be found in Finland, France and Spain. First, we show that the way in which these data are commonly collected generates double selection bias. Second, we show that this bias has a strong effect on the estimation of the geographical pattern of reservation wages in many countries. The size of this bias is substantial in Italy. When controlling for it, reservation wages are 10 per cent higher in the North and Centre than in the South. |
| Keywords: | reservation wages, sample selection, regional differentials |
| JEL: | J64 J22 R23 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_696_08&r=lab |
| By: | Damiani, Mirella; Pompei, Fabrizio |
| Abstract: | The present study examines cross-national and sectoral differences in multifactor productivity growth in sixteen European countries from 1995 to 2005. The main aim is to ascertain the role of flexible employment contracts and collective labour relationships in explaining the ample differentials recorded in the European economy. Research Findings We use the EU KLEMS database for growth accounting and a broad set of indicators of labour regulations, covering two distinct ‘areas’ of labour regulation: employment laws and collective relations laws. This comprehensive approach allow us to consider arrangements that regulate allocation of labour inputs (fixed-term, part-time contracts, hours worked) and of payoff and decision rights of employees. We find that, since 1995, European countries have not followed similar patterns of growth. A large number of variations between European economies are caused by deep differentials in multifactor productivity and part of this heterogeneity is caused by sectoral diversities. We show that, in labour-intensive sectors such as services, fixed-term contracts, which imply shorter-term jobs and lower employment tenures, may discourage investment in skills and have detrimental effects on multifactor productivity increases. We also find that some forms of labour regulation and arrangements that give a ‘voice’ to employees mitigate these perverse effects on efficiency patterns. Employment protection reforms which slacken the rules of fixed-term contracts cause potential drawbacks in terms of low productivity gains. More stringent regulation of these practices, as well as a climate of collective relations, sustain long-term relationships and mitigate these negative effects. |
| Keywords: | productivity; labour regulation; comparative institutions. |
| JEL: | O47 J24 J50 |
| Date: | 2009–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12710&r=lab |
| By: | Martin Kahanec; Klaus F. Zimmermann |
| Abstract: | The 2004 and 2007 enlargements of the European Union were unprecedented in a number of economic and policy aspects. This essay provides a broad and in-depth account of the effects of the post-enlargement migration flows on the receiving as well as sending countries in three broader areas: labour markets, welfare systems, and growth and competitiveness. Our analysis of the available literature and empirical evidence shows that (i) EU enlargement had a significant impact on migration flows from new to old member states, (ii) restrictions applied in some of the countries did not stop migrants from coming but changed the composition of the immigrants, (iii) any negative effects in the labour market on wages or employment are hard to detect, (iv) post-enlargement migration contributes to growth prospects of the EU, (v) these immigrants are strongly attached to the labour market, and (vi) they are quite unlikely to be among welfare recipients. These findings point out the difficulties that restrictions on the free movement of workers bring about. |
| Keywords: | migration, migration effects, EU Eastern enlargement, free movement of workers |
| JEL: | F22 J15 J61 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp849&r=lab |
| By: | Ljubica Nedelkoska (DFG Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University and the Max Planck Institute of Economics, Jena); Florian Noseleit (DFG Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University and the Max Planck Institute of Economics, Jena) |
| Abstract: | The literature on knowledge spillovers offers substantial evidence that workers, as main carriers of knowledge, play a role in the diffusion of knowledge among firms. One of the channels through which knowledge is diffused is the job-to-job mobility of workers. The purpose of this study is to empirically explore the industry-specific factors that influence the level of job-to-job mobility of highly qualified workers (HQWs) within three-digit industrial sectors. We use panel data from the German social security notifications to explore our research question. We find that HQW job-to-job mobility is dependent on technology-specific and industry's evolution-specific factors. The results show a significant and positive effect of the technological regime and the level of job destruction on the level of voluntary and overall HQW mobility. The intra-industry mobility of this group is also affected by establishment-size effects, the inflow of HQWs from other industries, and the type of industry (service or manufacturing). |
| Keywords: | job-to-job mobility of highly qualified workers, technological and organizational change, knowledge transmission |
| JEL: | D83 J44 J62 O33 |
| Date: | 2008–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2008-095&r=lab |
| By: | Thomas Philippon; Ariell Reshef |
| Abstract: | We use detailed information about wages, education and occupations to shed light on the evolution of the U.S. financial sector over the past century. We uncover a set of new, interrelated stylized facts: financial jobs were relatively skill intensive, complex, and highly paid until the 1930s and after the 1980s, but not in the interim period. We investigate the determinants of this evolution and find that financial deregulation and corporate activities linked to IPOs and credit risk increase the demand for skills in financial jobs. Computers and information technology play a more limited role. Our analysis also shows that wages in finance were excessively high around 1930 and from the mid 1990s until 2006. For the recent period we estimate that rents accounted for 30% to 50% of the wage differential between the financial sector and the rest of the private sector. |
| JEL: | G2 J2 J24 J3 O3 O32 O33 O51 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14644&r=lab |
| By: | Thierry Lallemand (Université Libre de Bruxelles, SBS-EM, DULBEA); François Rycx (Université Libre de Bruxelles, SBS-EM, CEB, DULBEA and IZA) |
| Abstract: | This paper investigates the effects of the workforce age structure on the productivity of large Belgian firms. More precisely, it examines different scenarios of changes in the proportion of young (16-29 years), middle-aged (30-49 years) and old (more than 49 years) workers and their expected effects on firm productivity. Using detailed matched employer-employee data, we find that a higher share of young (old) workers within firms is favourable (harmful) for firm value added per capita. Results also show that age structure effects on productivity are stronger in ICT than in non-ICT firms. |
| Keywords: | Firm performance, Workforce age structure, Demographic changes |
| JEL: | J21 J31 L25 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:09-02rs&r=lab |
| By: | Ana Rute Cardoso; Paulo Guimarães; Klaus F. Zimmermann |
| Abstract: | This paper analyzes the early research performance of PhD graduates in labor economics, addressing the following questions: Are there major productivity differences between graduates from American and European institutions? If so, how relevant is the quality of the training received (i.e. ranking of institution and supervisor) and the research environment in the subsequent job placement institution? The population under study consists of labor economics PhD graduates who received their degree in the years 2000 to 2005 in Europe or the USA. Research productivity is evaluated alternatively as the number of publications or the quality-adjusted number of publications of an individual. When restricting the analysis to the number of publications, results suggest a higher productivity by graduates from European universities than from USA universities, but this difference vanishes when accounting for the quality of the publication. The results also indicate that graduates placed at American institutions, in particular top ones, are likely to publish more quality-adjusted articles than their European counterparts. This may be because, when hired, they already have several good acceptances or because of more focused research efforts and clearer career incentives. |
| Keywords: | graduate programs, research productivity |
| JEL: | A23 J44 A11 A14 A10 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp850&r=lab |
| By: | Blekesaune M (Norwegian Social Research) |
| Abstract: | Does unemployment increase the risk of partnership dissolution? This is investigated for 3,586 marital partnerships (marriages or cohabitations) in 15 waves of the British Household Panel Survey. Both short and long term effects are investigated using discrete time hazard regression models. Results indicate that any form of unemployment predicts partnership dissolution. The effect is similar when unemployment hits either a man or a woman. The effect of male unemployment is to a considerable degree mediated by low financial satisfaction among their partners. We find no indications that the unemployment effect can be explained by unobserved heterogeneity. |
| Date: | 2008–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-21&r=lab |
| By: | Polavieja J (Catalan Institution for Research and Advanced Studies (ICREA), Pompeu Fabra University) |
| Abstract: | This paper proposes an explanation of sex-differences in job-allocation and pay. Job-allocation calculations are considered to be related to 1) the distribution of housework and 2) the skill-specialization requirements of jobs. Both elements combined generate a particular incentive structure for each sex. Welfare policies and services can, however, lower the risks of skill-depreciation for women as well as increase their intra-household bargaining power, hence reducing the economic pay-offs of “traditional” sphere-specialization by sex. The implications of this model for earnings are tested using data from the second round of the European Social Survey. Results seem consistent with the model predictions. |
| Date: | 2008–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-33&r=lab |
| By: | Eric A. Hanushek; Ludger Woessmann |
| Abstract: | We provide evidence that the robust association between cognitive skills and economic growth reflects a causal effect of cognitive skills and supports the economic benefits of effective school policy. We develop a new common metric that allows tracking student achievement across countries, over time, and along the within-country distribution. Extensive sensitivity analyses of cross-country growth regressions generate remarkably stable results across specifications, time periods, and country samples. In addressing causality, we find, first, significant growth effects of cognitive skills when instrumented by institutional features of school systems. Second, home-country cognitive-skill levels strongly affect the earnings of immigrants on the U.S. labor market in a difference-in-differences model that compares home-educated to U.S.-educated immigrants from the same country of origin. Third, countries that improved their cognitive skills over time experienced relative increases in their growth paths. From a policy perspective, the shares of basic literates and high performers have independent significant effects on growth that are complementary to each other, and the high-performer effect is larger in poorer countries. |
| JEL: | H4 I2 J3 J61 O1 O4 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14633&r=lab |
| By: | Bruckmeier, Kerstin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Schwengler, Barbara (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "Almost twenty years after German reunification there are still huge income disparities between western and eastern regions in Germany. The main purpose of the paper is to show how social transfer payments reduce these inter-regional disparities. In a first step we examine inequalities in the distribution of gross income from dependent employment and self-employment at the small-area level of 439 NUTS-3 units. Our distributional analysis quantifies regional wage inequalities driven by economic disparities and different patterns of employment. A decomposition analysis reveals that large wage differentials exist not only between eastern and western Germany but also within western regions. Furthermore we estimate the income effects of the German unemployment and pension insurance using different sources of social security data at regional level. The results indicate large regional redistributive effects across areas: the share of social benefits and payments as a percentage of total net income ranges from 11 per cent to 41 per cent. Like other European states, Germany faces several problems concerning its welfare system. Recent reforms of the welfare system in 2004 and 2005 also affected some core principles of social security. Our results show that changing parameters of eligibility, claims and financing will influence the spatial income distribution. Hence further research on this topic is recommended when data for 2005 and later years are available." (author's abstract, IAB-Doku) ((en)) |
| Keywords: | Sozialpolitik, Verteilungseffekte, Einkommenseffekte, regionale Disparität, Einkommenshöhe, Einkommensentwicklung, regionaler Vergleich, Sozialversicherung, Sozialausgaben, Sozialleistungen, Transferleistung, Lohnhöhe, Arbeitslosenversicherung, Rentenversicherung, abhängig Beschäftigte, Selbständige, Einkommensverteilung, Ostdeutschland, Westdeutschland, Bundesrepublik Deutschland |
| JEL: | D30 D63 H55 R12 |
| Date: | 2009–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:200901&r=lab |
| By: | Damiaan Persyn |
| Abstract: | This paper analyses the wage demands of a sector-level monopoly union facing internationally mobile firms. A simple two-country economic geography model is used to describe how firms relocate in function of international dierences in production costs and market size. The union sets wages in function of the firm level labour demand elasticity and the responsiveness of firms to relocate internationally. If countries are suffciently symmetric lower foreign wages and lower trade costs necessarily lead to lower union wage demands. With asymmetric countries these intuitive properties do not always hold. But even for symmetric countries it holds that small increases in market size or trade costs makes union wages more sensitive to the foreign wage level. |
| Keywords: | Unions, globalisation, economic geography |
| JEL: | J50 J31 F16 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:22808&r=lab |
| By: | Christian Dustmann; Stephen Machin; Uta Schönberg (Centre for Research and Analysis of Migration (CReAM), Department of Economics UCL, CEP LSE and CEPR, IAB) |
| Abstract: | This paper analyzes the evolution of the attainment gap between white British born and ethnic minority pupils throughout compulsory schooling, from the age of 5 to 16. At the start of school, pupils from most ethnic groups substantially lag behind White British pupils, but these gaps decline for all groups throughout primary and secondary school. Language is the single most important factor why most ethnic minority pupils improve relative to White British pupils. Although poverty explains part of the differences in levels, it cannot explain why ethnic minority pupils gain relative to or even overtake White British pupils. All ethnic minority groups initially attend worse performing schools than White British pupils. However, more than 20 percent of the subsequent relative improvement can be attributed to ethnic minority pupils moving up to better schools relative to White British pupils. Finally, our results suggest the possibility that the relative improvement of ethnic minority pupils may be related to teacher incentives to concentrate attention on particular pupils, caused by the publication of school league tables at the end of secondary school. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:0812&r=lab |
| By: | Natalia Zinovyeva; Florentino Felgueroso; Pablo Vazquez Vega |
| Abstract: | In this paper we assess the differences between immigrant and native pupils' educational performance in Spain using data from the Programme for International Student Assessment (PISA). We find that immigrant pupils perform substantially worse than native pupils in all domains analyzed by PISA. Around half of this gap can be attributed to the differences in observable parental socio-economic characteristics. Between 4 and 20% of the gap can be explained by schools' fixed effects, which capture mainly the existence of differences in the average parental education of peers across schools. Immigrants tend to perform relatively worse in those areas where segregation is higher. Finally, we observe that immigrants' performance tends to improve the longer they stay in Spain. |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2008-37&r=lab |
| By: | Garcia-serrano C (Universidad de Alcalá); Malo-ocana M (Universidad de Alcalá) |
| Abstract: | Using data from the European Community Household Panel for Spain covering the period 1995-2001, this paper investigates the influence of disability on absenteeism reported by workers. Results show that workers with disabilities are absent more days than workers without disabilities. This finding holds even when individualÂ’s selfreported health, visits to doctors and nights spent in hospitals are included in the estimations. The total effect of disability on absenteeism amounts to a marginal increase of 6-10 days per year. Implications for labour policy are discussed. |
| Date: | 2008–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-29&r=lab |
| By: | Peter Gottschalk (Boston College); Erika McEntarfer (U.S. Department of the Treasury); Robert Moffitt (Johns Hopkins University) |
| Abstract: | We estimate the trend in the transitory variance of male earnings in the U.S. from 1991 to 2005 using an administrative data set of Unemployment Insurance wage reports, the Longitudinal Employer-Employer Dynamics data set (LEHD), and compare the findings to those of Moffitt and Gottschalk (2008) obtained from the Michigan Panel Study of Income Dynamics (PSID). Despite substantial differences between the LEHD and the PSID in the levels of cross- sectional variances of male earnings, the changes over time in transitory variances obtained from estimating two of the models in Moffitt and Gottschalk are quite similar in the two data sets. Specifically, over the 1991-2003 period, transitory variances fell slightly, and then rose slightly, returning in 2003 to the same approximate level they had obtained in 1991. Overall, the analysis of the LEHD data confirms the findings based on the PSID that the transitory variance did not show a trend net of cycle over this period. |
| Date: | 2008–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:696&r=lab |
| By: | Auer, Raphael (Swiss National Bank); Fischer, Andreas M. (Swiss National Bank) |
| Abstract: | This paper develops a new methodology to estimate the effect of low-wage import competition on U.S. producer prices. We first document that when low-wage countries grow, their exports to the United States increase most in labor-intensive sectors. Second, we demonstrate that the temporary and relative component of imports induced by labor intensity and output growth in low-wage countries is orthogonal to U.S. supply and demand shocks and can, therefore, be utilized to identify the causal impact of import competition on prices. In a panel covering 325 manufacturing industries from 1997 to 2006, we find that imports from nine low-wage countries are associated with strong downward pressure on U.S. prices. When these nations capture 1% U.S. market share, producer prices decrease by 3.1%, which is nearly fully accounted by a 2.4% increase in labor productivity and a 0.4% decrease in markups. Overall, we find that imports from the examined countries have decreased U.S. manufacturing PPI inflation by around two percentage points each year. |
| Keywords: | Low-Wage Country Import Competition; Comparative Advantage; Globalization |
| JEL: | F14 F15 F16 |
| Date: | 2008–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:snbwpa:2008_018&r=lab |
| By: | Richard Cooper |
| Abstract: | This review surveys trends in physician supply in the United States from 1980 to the present with particular attention to the participation of International Medical Graduates. It discussed the composition of the physician workforce with regards to the number of family practitioners, specialists, women physicians and the aging of the workforce. Changes in the inflows and outflows of the physician workforce are discussed and, in particular, how international migration, retirement, part-time practice and alternative employment have impacted the physician workforce.<BR>La présente étude consistait à observer l’évolution de l’offre de médecins aux États-Unis de 1980 à nos jours, en accordant une attention particulière aux médecins diplômés étrangers. On y examine la composition du corps médical, dont le nombre de médecins de famille, de spécialistes, de femmes médecins, ainsi que la question de son vieillissement. On y réfléchit sur l’évolution des flux d’entrées et de sorties de médecins en activité et, en particulier, sur la manière dont les migrations internationales, les départs à la retraite, l’exercice à temps partiel et la possibilité d’exercer un autre emploi ont influé sur cette population. |
| Keywords: | absolute poverty |
| JEL: | I19 J61 |
| Date: | 2008–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaad:37-en&r=lab |
| By: | Del bono E (Institute for Social and Economic Research); Ermisch J (Institute for Social and Economic Research); Francesconi M (Department of Economics, University of Essex) |
| Abstract: | This paper estimates a model of dynamic intrahousehold investment behavior which incor- porates family fixed effects and child endowment heterogeneity. This framework is applied to large American and British survey data on birth outcomes, with focus on the effects of antenatal parental smoking and maternal labor supply net of other maternal behavior and child characteristics. We find that maternal smoking during pregnancy reduces birth weight and fetal growth, while paternal smoking has virtually no effect. Mothers' work interruptions of up to two months before birth have a positive effect on birth outcomes, especially among British children. Parental behavior appears to respond to permanent family-specific unobservables and to child idiosyncratic endowments in a way that suggests that parents have equal concerns, rather than efficiency motives, in allocating their prenatal inputs across children. Evidence of equal concerns emerges also from the analysis of breastfeeding decisions, although the effects in this case are weaker. |
| Date: | 2008–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-27&r=lab |
| By: | Torberg Falch; Justina AV Fischer |
| Abstract: | Using a panel of international student test scores, 1980 – 2000, panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of, or decentralization in, educational spending. |
| Keywords: | Fiscal decentralization, Student achievement, federalism, PISA, TIMSS, education, school quality |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:twi:respas:0039&r=lab |
| By: | Hervé Boulhol (Université Paris-Panthéon Sorbonne, OECD); Sabien Dobbelaere (VU University Amsterdam, Ghent University, IZA Bonn); Sara Maioli (Newcastle University Business School) |
| Abstract: | This paper tests the pro-competitive effect of trade in the product and labour markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 9820 firms from twenty manufacturing sectors to simultaneously estimate mark-up and workers’ bargaining power parameters according to sector, firm size and period. We find a significant drop in both the mark-up and the workers’ bargaining power in the mid-nineties. In the second stage, we relate our parameters of interest to trade variables. Our results show that imports from developed countries have significantly contributed to the decrease in both mark-ups and workers’ bargaining power. |
| Keywords: | Workers’ bargaining power; mark-ups; pro-competitive effect |
| JEL: | C23 F16 J51 L13 |
| Date: | 2009–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20090002&r=lab |
| By: | Ana Lamo (European Central Bank); Javier J. Pérez (Bank of Spain); Ludger Schuknecht (European Central Bank) |
| Abstract: | This paper looks at public and private sector wages interactions since the 1960s in the euro area, euro area countries and a number of other OECD countries. It focuses on co-movements and causal relationships. To obtain the most robust results possible, we apply a number of alternative empirical methodologies, and perform the analysis for two data samples and different price deflators. The paper reports, first, a strong positive annual contemporaneous correlation of public and private sector wages over the business cycle; this finding is robust across methods and measures of wages and quite general across countries. Second, we show evidence of long-run relationships between public and private sector wages in all countries. Finally, causality analysis suggests that feedback effects between private and public wages occur in a direct manner and, importantly also via prices. While influences from the private sector appear on the whole to be stronger, there are direct and indirect feedback effects from public wage setting in a number of countries as well. We show how country-specific institutional features of labour and product markets contain helpful information to explain the heterogeneity across countries of our results on public/private wage leadership. |
| Keywords: | government wages; private sector wages; causality; co-movement. |
| JEL: | J30 C32 J51 J52 E62 E63 H50 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:cea:doctra:e2008_14&r=lab |
| By: | Marina Della Giusta (School of Economics, University of Reading); Uma Kambhampati (School of Economics, University of Reading) |
| Abstract: | Our paper contributes to current debates around work-life balance and the efficiency and wellbeing costs associated with different models of work and childcare (Gregory and Connolly, 2008). It also contributes from a gender perspective to the life satisfaction literature by providing a test for the hypothesis that women and men with children attribute different meanings to overall life satisfaction. We begin by presenting a conventional model of life satisfaction for British parents in wave 8 of the British Household Panel Survey which includes childcare arrangements; and move on to discuss the possibility that women and men have a different understanding of what matters in life and what constitutes life satisfaction, and accordingly we explore the role of dimensions of life satisfaction in overall life satisfaction. Finally, we try to account for observed differences between women and men and explain some of the paradoxes encountered in the literature on women and work-life balance, and on policy based on happiness scores. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2008-65&r=lab |
| By: | Andrén, D; Andrén, T |
| Abstract: | This paper analyzes the effects of being on part-time sick leave compared to full-time sick leave on the probability of recovering (i.e., returning to work with full recovery of lost work capacity). Using a discrete choice one-factor model, we estimate mean treatment parameters and distributional treatment parameters from a common set of structural parameters. Our results show that part-time sick leave increases the likelihood of recovering and dominates full-time sick leave for sickness spells of 150 days or longer. For these long spells, the probability of recovering increases by 10 percentage points. |
| Keywords: | part-time sick leave, selection, unobserved heterogeneity, treatment effects |
| JEL: | I12 J21 J28 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:09/01&r=lab |
| By: | Rie Fujisawa; Gaetan Lafortune |
| Abstract: | This paper provides a descriptive analysis of the remuneration of doctors in 14 OECD countries for which reasonably comparable data were available in OECD Health Data 2007 (Austria, Canada, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Iceland, Luxembourg, Netherlands, Switzerland, the United Kingdom and the United States). Data are presented for general practitioners (GPs) and medical specialists separately, comparing remuneration levels across countries both on the basis of a common currency (US dollar, adjusted for purchasing power parity) and in relation to the average wage of all workers in each country.<BR>Ce document de travail présente une analyse descriptive de la rémunération des médecins dans 14 pays de l’OCDE pour lesquels on trouve des données raisonnablement comparables dans Eco-santé OCDE 2007 (Allemagne, Autriche, Canada, Danemark, États-Unis, Finlande, France, Hongrie, Islande, Luxembourg, Pays-Bas, République tchèque, Royaume-Uni et Suisse). Les données sont présentées séparément pour les généralistes (omnipraticiens) et les spécialistes. La comparaison des niveaux de rémunération entre pays est faite sur la base d’une monnaie commune (le dollar américain, ajusté pour la parité des pouvoirs d’achat), ainsi qu’en rapport avec le salaire moyen de l’ensemble des travailleurs dans chacun des pays. |
| Date: | 2008–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaad:41-en&r=lab |
| By: | John Komlos |
| Abstract: | Height trends since World War II are analyzed using the most recent NHANES survey released in 2006. After declining for about a generation, the height of adult white men and women began to increase among the birth cohorts of c. 1975-1986, i.e., those who reached adulthood within the past decade (1995-2006). The increase in their height overcame the prior downturn that lasted between ca. 1965 and 1974. The height gap between white and black men has increased by only 0.43 cm (0.17 in.) during past decade compared to the previous quarter century to reach 1.0 cm (0.39 in.). However, the height of black women has been actually declining absolutely by 1.42 cm (0.56 in.) and relative to that of white women. Black women of the most recent birth cohort are (at 162.3 cm, 63.9 in.) shorter than almost all Western-European women including Spain and Italy. As a consequence, a very considerable wedge has developed between black and white women's height of 1.95 cm (0.77 in.). The decline in their height is most likely related to the obesity epidemic caused by inadequate dietary balance. Black women in the age range 20-39 weigh some 9.5 kg (21.0 lb) more than their white counterparts. It appears that black females are experiencing a double jeopardy in the sense that both their increasing weight and the diminution of their physical stature are both substantial and are both probably associated with negative health consequences. |
| JEL: | I1 I31 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14635&r=lab |
| By: | Rainer H (School of Economics and Finance, University of St Andrews); Siedler T (Institute for Social and Economic Research) |
| Abstract: | This paper empirically examines social network explanations for migration decisions in the context of the German reunification. Using longitudinal data from the German Socio- Economic Panel, we first show that the presence of family and friends in West Germany is an important predictor for the migration hazard rate of East Germans. We then explore whether pre-migration networks have a discernible impact on the economic and social assimilation of East German immigrants in West Germany. We find that East German immigrants are more likely to be employed, and to hold higher-paying jobs, when socially connected to the West prior to emigrating. East Germans immigrants with pre-migration networks also appear to be more integrated into their Western host communities than movers without preexisting social ties. |
| Date: | 2008–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-36&r=lab |
| By: | van Quaquebeke, N.; Zenker, S.; Eckloff, T. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Two large online surveys were conducted among employees in Germany to explore the importance employees and organizations place on aspects of interpersonal respect in relation to other work values. The first study (N = 589) extracted a general ranking of work values, showing that employees rate issues of respect involving supervisors particularly high. The second study (N = 318) replicated the previous value ranking. Additionally, it is shown that the value priorities indicated by employees do not always match their perceptions of actual organizational practices. Particularly interpersonal respect issues that involve employees’ supervisors diverge strongly negative. Consequences and potentials for change in organizations are discussed. |
| Keywords: | work values;interpersonal respect;organizational culture;organizational practices |
| Date: | 2008–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765014311&r=lab |
| By: | Rena, Ravinder |
| Abstract: | The ongoing national reconstruction process of Eritrea is centered on educational reformation. The government of Eritrea placed educational policy on top priority for national development which demands the emergence of new class of trained youth blended with disciplined minds and skills instead of raw graduation. It had established about eight colleges at tertiary level within a short span of time to build human resource required for the present and future. In line with this, it laid down new policies and curricula suit to the immediate national scenario. This article analyzed the strengths and weaknesses of the educational policies, planning and the infrastructure requirements to meet the intended goal. It explored and analyzed Eritrean educational development and its key challenges. It also provided some useful insights for policy development. The data for the study were mainly collected from the reports of Ministry of Education and other colleges in Eritrea. The outcome of the educational reformation is expected to have a profound effect in the development of the country. |
| Keywords: | Education; Eritrea; Human capital and Economic development; Economic growth; Gender inequality. |
| JEL: | A22 I21 I23 I28 I22 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12626&r=lab |
| By: | Robert Bifulco (Center for Policy Research, Maxwell School, Syracuse University, Syracuse, NY 13244-1020); Helen F. Ladd; Stephen Ross |
| Abstract: | Using evidence from Durham, North Carolina, we examine the impact of school choice programs on racial and class-based segregation across schools. Theoretical considerations suggest that how choice programs affect segregation will depend not only on the family preferences emphasized inthe sociology literature but also on the linkages between student composition, school quality and student achievement emphasized in the economics literature. Reasonable assumptions about the distribution of preferences over race, class, and school characteristics suggest that the segregating choices of students from advantaged backgrounds are likely to outweigh any integrating choices by disadvantaged students. The results of our empirical analysis are consistent with these theoretical considerations. Using information on the actual schools students attend and on the schools in their assigned attendance zones, we find that schools in Durham are more segregated by race and class as a result of school choice programs than they would be if all students attended their geographically assigned schools. In addition, we find that the effects of choice on segregation by class are larger than the ffects on segregation by race. |
| Keywords: | Racial segregation, School choice |
| JEL: | H31 I20 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:max:cprwps:109&r=lab |
| By: | Robert Moffitt (Johns Hopkins University); Peter Gottschalk (Boston College) |
| Abstract: | We estimate the trend in the transitory variance of male earnings in the U.S. using the Michigan Panel Study of Income Dynamics from 1970 to 2004. Using both an error components model as well as simpler but more approximate methods, we find that the transitory variance increased substantially in the 1980’s and then remained at this new higher level through 2004 We also find a strong cyclical component to the transitory variance. Its increase accounts for between 30 and 65 percent of the total rise in cross-sectional variance, depending on the time period. The cross-sectional variance has recently increased but this reflects a rise in the variance of the permanent component, not the transitory component. Increases in transitory variance occurred for less educated in the early 1980s and for more educated workers in the later 1980s and early 1990s. |
| Date: | 2008–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:697&r=lab |
| By: | Francesca De Battisti (Department of Economics, Business and Statistics - University of Milan); Giovanna Nicolini (Department of Economics, Business and Statistics - University of Milan); Silvia Salini (Department of Economics, Business and Statistics - University of Milan) |
| Abstract: | We suggest that the "occupational outcome" of graduates should be considered as an additional dimension in the ranking of Academic Institutions and their Faculties. We measure the occupational outcome through the ISTAT graduate employment national survey. We make an exercise on Humanities Faculties showing that we can consider one dimension as occupational outcome or we can split up the latter into two dimensions as "cultural capital" and "social class". We show how the ranking of Italian Universities, made by the Censis-La Repubblica, changes when accounting for this new dimension into the three instances we propose. |
| Keywords: | Education, Employment, Rating, |
| Date: | 2008–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:bep:unimip:1080&r=lab |
| By: | Chris Manning; Alberto Posso |
| Abstract: | This paper seeks to explain different real wage outcomes in two groups of East Asian economies: two New Industrialising Economies (NIEs: Korea and Taiwan), and three Southeast Asian economies (ASEAN-3: Malaysia, Thailand and Indonesia), all of which grew rapidly for several decades prior to the Asian economic crisis. Drawing on international and national data sets, the paper examines dynamic interactions between manufacturing growth and labour market outcomes. It adopts the dualistic Lewis model, which highlights the role of ‘unlimited’ supplies of labour in economic development and the transition towards the turning point, as a heuristic device to inform the empirical analysis. A simple regression model is employed to examine the determinants of real wages over the first two decades of accelerated growth in the two groups of economies. This finds that while both demand and supply factors contributed to real wage growth, the supply variable which proxied surplus labour conditions was especially significant in the NIEs compared with the ASEAN-3. The model did not find any evidence for institutional factors having a significant impact on the different wage outcomes between the NIEs and the ASEAN-3. |
| Keywords: | China, global production sharing, U.S.-China trade imbalance |
| JEL: | F16 J20 O14 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2008-23&r=lab |
| By: | Yuemei JI |
| Abstract: | It is puzzling that socioeconomic background greatly affects educational choice. Distinguished from the explanations based on expected utility theory, this paper attempts to explore the psychological mechanisms of generating educational identity1 and schooling choice. It offers a self-signaling model where (1) it incorporates self-esteem concerns into the agent’s payoff function, (2) the investment in schooling not only signals her cognitive ability but also brings the agent into cognitive dissonance and reduction when the perceptions of ability are time-dependent. Using this model, I show a more discriminating analysis of educational choice which combines multi-dimensional factors including socioeconomic background, cognitive and non-cognitive abilities. I identify the conditions under which the high ability agent fails to invest in education. The quality of school and the preschooling are key variables. The model suggests that public policy can help poor children by improving both the early and later education quality at school. |
| Keywords: | identity, educational choice, poverty |
| JEL: | D81 I30 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces0830&r=lab |
| By: | Reza Oladi (Department of Applied Economics, Utah State University); John Gilbert (Department of Economics and Finance, Utah State University); Hamid Beladi (Department of Economics, University of Texas - San Antonio) |
| Abstract: | Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap between the two under plausible conditions. |
| Keywords: | Real wages, foreign direct investment, non-traded goods |
| JEL: | F10 F11 F21 |
| Date: | 2008–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:uth:wpaper:200804&r=lab |
| By: | Laurie H (Institute for Social and Economic Research); Lynn P (Institute for Social and Economic Research) |
| Abstract: | Incentives in the form of a gift or money are given to survey respondents in the hope that this will increase response rates and possibly also reduce non-response bias. They can also act as a means of thanking respondents for taking part and showing appreciation for the time the respondent has given to the survey. There is a considerable literature devoted to the effects of respondent incentives, though most studies are based on cross-sectional surveys. These studies show that the both the form of the incentive, gift or money, and the way in which the incentive is delivered to the respondent has a measurable impact on response rates. A monetary incentive sent to the respondent in advance of the interview has the greatest effect on increasing response, regardless of the amount of money involved. This type of unconditional incentive is thought to operate through a process of social reciprocity where the respondent perceives that they have received something unconditionally on trust so reciprocate in kind by taking part in the research. Some of the literature suggests an improvement in data quality from respondents who are given an incentive, in terms of reduced item non-response and reduced bias through encouraging certain demographic groups to participate who otherwise might refuse. It is generally felt that incentives are more appropriate the greater the burden to respondents of taking part. Longitudinal surveys certainly constitute high burden surveys, but there is little guidance on how and when incentives should be employed on longitudinal surveys. In this paper, we review the use that is made of incentives on longitudinal surveys, describing common practices and the rationale for these practices. We attempt to identify the features of longitudinal surveys that are unique and the features that they share with cross-sectional surveys in terms of motivations and opportunities for the use of incentives and possible effects of incentives. We then review experimental evidence on the effects of incentives on longitudinal surveys. Finally, we report on two experimental studies carried out in the UK. These both address a particular issue in longitudinal surveys, namely the effect of changing the way that incentives are used part-way through the survey. Each experiment addressed a different type of change. The first experiment was carried out on the British Election Panel Survey, where an incentive was introduced for the first time at wave 6. Three experimental groups were used at both waves 6 and 7, consisting of a zero incentive and two different values of unconditional incentive. The second experiment was carried out on wave 14 (2004) of the British Household Panel Survey (BHPS). BHPS respondents have always received a gift token as an incentive and since wave 6 of the study (1996) this has been offered unconditionally in advance of the interview to the majority of respondents. The wave 14 experiment was designed to assess the effect on response of increasing the level of the incentive offered from £7 to £10 for established panel members, many of whom have co-operated with the survey for thirteen years. |
| Date: | 2008–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-42&r=lab |
| By: | Neeru Paharia (Harvard Business School); Rohit Deshpande (Harvard Business School, Marketing Unit) |
| Abstract: | While many consumers say they care about issues such as sweatshop labor, the existence of a very small market for ethically-produced products does not reflect this sentiment. One explanation for this discrepancy is that consumers are motivated to use moral disengagement strategies to reduce cognitive dissonance when their desire for a product conflicts with their moral standards. In two studies we show levels of moral disengagement can vary based on one's desire for a product when sweatshop labor is present. Furthermore, we present evidence for a mediated moderation where beliefs about sweatshop labor use moderates the impact of desirability on purchase intention, and moral disengagement mediates this process. Motivated mechanisms of moral disengagement are relevant in moral psychology, and have public policy implications. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:09-079&r=lab |
| By: | Heli Koski; Luigi -Mäkinen Marengo |
| Abstract: | ABSTRACT : Our study aims at shedding light on the organizational mechanisms that produce differences in the firms´ innovation performance. We use a survey data collected from 398 Finnish manufacturing firms for the years 2002 and 2005 to empirically explore whether and which organizational factors explain why certain firms produce larger innovative research output than others, and whether the incentives to innovate that certain organizational practices generate differ between the SME’s and large firms, and between those firms that are operating in low-tech and high-tech industries. Our study indicates that one size does not fit all when it comes to the selection of organizational practices creating a business environment that is fruitful for innovation. There are vast differences in the organizational practices leading to more innovation both between the small and large firms, and between the firms that are functioning in high- and low-tech industries. While innovation in the small firms tend to benefit from the practices that enhance employee participation in the decision-making, the large firms that have more decentralized decision-making patterns do not seem to perform better in terms of innovation than those with a more bureaucratic decision-making structure. The most efficient incentive-based compensation means encouraging innovation among the sampled companies seems to be the ownership of a firm’s stocks by the employees and/or managers. Performance based wages also relates positively to innovation, but only when it is combined with a systematic monitoring of the firm´s performance. |
| Keywords: | innovation, firm size, organizational practices, HRM practices |
| JEL: | L25 M54 O31 |
| Date: | 2009–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1176&r=lab |
| By: | Barrett, Alan (ESRI); Rust, Anna (ESRI) |
| Abstract: | Ireland will experience population ageing in the coming years, whereby the percentage of the population aged 65 and over will rise from its current level of 11 percent to over 20 percent in 2035. A number of papers have looked at the implications of this process for the public finances. However, less attention has been paid to the human resource needs that will arise if increased demands are placed on health and social care systems. In this paper, we provide projections of the possible numbers that will be needed to work in the health and social care sectors out to 2035. We also consider what proportion of the extra employees will be migrants. We discuss both practical and ethical issues which arise when foreign health and social care workers are recruited. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp275&r=lab |
| By: | Manuel A. Hidalgo Pérez (Universidad Pablo de Olavide); Jesús Rodríguez López (Universidad Pablo de Olavide); José Mª O.Kean Alonso (Universidad Pablo de Olavide) |
| Abstract: | Utilizando la base de datos EU KLEMS, se contrasta la hipótesis de complementariedad entre habilidad y capital en los distintos sectores productivos en España en el periodo 1980-2005. Se analizan tres tipos de trabajadores clasificados según su nivel de habilidad sea alto, medio o bajo. Los activos de capital se van a clasificar entre activos TIC (tecnologías de la información y la comunicación) y activos no-TIC. La adquisición y el uso de activos TIC son costosos pero ha ido disminuyendo en el periodo en consideración en términos relativos a otros activos y al factor trabajo. El principal resultado que se obtiene es que existe un grado de sustituibilidad entre los trabajadores y los activos TIC a medida que la habilidad del trabajador va aumentando. De hecho, los activos TIC son muy complementarios con los trabajadores de alta habilidad. A lo largo del periodo analizado, la fracción de trabajadores con habilidad media y alta ha crecido un 21% y un 12%, respectivamente, en detrimento de los trabajadores de baja habilidad. Después de descomponer estos cambios, se descubre que existe un ajuste dentro de los sectores más que un ajuste del trabajo entre sectores. |
| Keywords: | capital-skill complementarity, ICT, translog cost function, elasticity of substitution. |
| JEL: | E22 J24 J31 O33 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:cea:doctra:e2008_13&r=lab |
| By: | Antoni Calvó-Armengol; Eleonora Patacchini; Yves Zenou (Universitat Autònoma de Barcelona,Università di Roma “La Sapienza”, Stockholm University, IFN, GAINS, and CREAM) |
| Abstract: | This paper studies whether structural properties of friendship networks affect individual outcomes in education. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight to her distant friends. We then bring the model to the data by using a very detailed dataset of adolescent friendship networks. We show that, after controlling for observable individual characteristics and unobservable network specific factors, the individual’s position in a network (as measured by her Katz-Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Katz- Bonacich centrality increases the pupil school performance by more than 7 percent of one standard deviation. |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:0814&r=lab |
| By: | Ermisch J (Institute for Social and Economic Research); Gambetta D (Nuffield College, Oxfod) |
| Abstract: | We provide direct evidence that people with strong family ties have a lower level of trust in strangers than people with weak family ties, and argue that this association is causal. We also investigate the mechanisms that underlie this effect, and provide evidence that these revolve around the level of outward exposure: factors that limit exposure limit subjects’ experience as well as motivation to deal with strangers. Our findings are based on experimental data derived from a new design of the ‘trust game’ combined with panel survey data, both drawn from a near-representative sample of the British population. |
| Date: | 2008–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-37&r=lab |
| By: | Cappellari L (Department of Economics, Università Cattolica di Milano); Jenkins S (Institute for Social and Economic Research) |
| Abstract: | We model the dynamics of social assistance benefit receipt in Britain using data from the British Household Panel Survey, waves 1–15. First, we discuss definitions of social assistance benefit receipt, and present information about the trends between 1991 and 2005 in the receipt of social assistance benefits, and in annual rates of transition into and out of receipt. Second, we review potential multivariate modelling approaches especially the dynamic random effects probit models that are used in our empirical analysis and, third, discuss sample selection criteria and explanatory variables. Fourth, we present our regression estimation estimates and interpret them. The final section contains a summary of the substantive results, and highlights some lessons concerning application of the analysis for other countries and some methodological issues. |
| Date: | 2008–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-34&r=lab |
| By: | Michael Fritsch (Friedrich Schiller University Jena, School of Economics and Business Administration); Florian Noseleit (Friedrich Schiller University Jena, School of Economics and Business Administration) |
| Abstract: | Recent empirical research has found that the effect of new business formation on employment emerges over a period of about ten years and has identified a 'wave' pattern of these effects. In this study, we decompose the overall contribution of new business formation on employment change into direct and indirect effects. The results indicate that indirect effects of new business formation are quantitatively much more important than the direct effects. Furthermore, we find that regional differences of the employment change generated by new business formation can to a large part be explained by respective differences of the indirect effects. Hence, the interaction of the start-ups with their regional environment plays a great role for explaining their impact on regional development. |
| Keywords: | Entrepreneurship, new business formation, regional development, direct and indirect effects |
| JEL: | L26 M13 O1 O18 R11 |
| Date: | 2009–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-001&r=lab |
| By: | Uma Kambhampati (Department of Economics, University of Reading) |
| Abstract: | This paper analyses whether the amount households spend on education depends upon the returns to education prevalent in the region in which they live. To this end, we estimated rates of return to education separately for boys and girls in 33 states and UTs in India. These rates of return were then included in our education expenditure model. Our results clearly indicated that the rate of return to education was highly significant in increasing the amount spent on education by the household both for boys and girls. However, we find that the impact of this variable is much larger at secondary level and for girls. |
| Keywords: | Education, Returns to education, India, household expenditure. |
| JEL: | I21 I22 R22 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2008-60&r=lab |
| By: | Marina Della Giusta (Department of Economics, University of Reading); Alessandra Faggian (University of Southampton) |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2008-58&r=lab |
| By: | Jean-Christophe Dumont; Pascal Zurn; Jody Church; Christine Le Thi |
| Abstract: | This report examines the role played by immigrant health workers in the Canadian health workforce but also the interactions between migration policies and education and health workforce management policies. Migrant health worker makes a significant contribution to the Canadian health workforce. Around 2005-06, more than 22% of the doctors were foreign-trained and 37% were foreign-born. The corresponding figures for nurses are close to 7.7% and 20%, respectively. Foreign-trained doctors play an important role in rural areas as they contribute to filling the gaps. In most rural areas, on average, 30% of the physicians were foreign-trained in 2004. Over past decades the evolution of the health workforce in Canada has been characterised notably by a sharp decline in the density of nurses and a stable density of doctors, which is in contrast with the trends observed in other OECD countries. This evolution is largely the result of measures were adopted at the end of the 1980s and early 1990s in order to address a perceived health workforce surplus.<BR>Ce rapport examine le rôle joué par la migration de personnel de santé dans les effectifs de santé au Canada mais aussi les interactions entre les politiques migratoires, la formation et les politiques de gestion de ressources humaines. Le personnel de santé recruté à l’étranger contribue de façon significative aux effectifs de santé au Canada. En 2005-06, plus de 22 % des médecins au Canada sont formés à l’étranger et 37 % d’entre eux sont nés à l’étranger. Respectivement pour les infirmières, la part des personnes formées à l’étranger est de 7.7 % et celle des personnes nées à l’étranger de 20%. Les médecins formés à l’étranger jouent un rôle important dans des zones rurales ayant contribué à réduire au manque d’effectif dans les zones rurales. En 2004, dans la plupart des zones rurales, en moyenne 30 % des médecins sont formés à l’étranger. Au cours des dernières décennies, l’évolution des effectifs de santé au Canada a été marquée notamment par un net déclin de la densité des infirmières et par une densité stable des médecins, ce qui contraste avec les tendances observées dans les pays de l’OCDE. Cette évolution est largement due aux mesures adoptées à la fin des années 80 et au début des années 90 afin de répondre au surplus perçu d’effectif de personnel de santé. |
| Date: | 2008–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaad:40-en&r=lab |
| By: | Maes M (Catholic University Louvain) |
| Abstract: | Based upon a longitudinal administrative dataset merged with the Socio-economic Survey of 2001 and the National Register, the majority of the poor elderly in Belgium appear to be persistently poor. The simultaneous estimation of a multiple, spell discrete, time hazard model shows that dependence in poverty is a true phenomenon. It also shows that besides observable characteristics that reduce poverty exit and increase re-entry there are, in addition, unobserved effects that lead to the same kind of poverty persistence. Controlling for unobserved effects and an initial condition problem significantly improved the fit of the model. |
| Date: | 2008–08–08 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-24&r=lab |
| By: | R N Pandey |
| Abstract: | An attempt has been made to discuss various aspects of unpaid household work such as its treatment in the system of National Accounts, and the methodologies of its valuation. With the help relevant data from Indian Time Use Survey, quantification of unpaid work in the Indian economy has been attempted for two states, namely Haryana and Gujarat. [NIpFP Discussion Paper No. 2]. |
| Keywords: | quantification, time use survey, national accounts, Indian economy, Haryana, Gujarat, household work, valuation, states, women's, data, unpaid, contribution |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1836&r=lab |
| By: | Peake, Whitney O.; Marshall, Maria I. |
| Abstract: | This study tests the impact of household and demographic factors on the economic well-being of the farm and nonfarm self-employed using data from the Integrated Public Use Microdata Series. Parametric and nonparametric techniques are used to test for statistical differences in self-employment and household income levels. Further, household and demographic factors are tested for their effect on self-employment income using a censored tobit regression model. The farm self-employed report significantly higher levels of self-employment income. Results reveal that several household and demographic factors significantly impact self-employment income levels for the farm and nonfarm self-employed, with key differences in impacts. |
| Keywords: | self-employment, farm households, Community/Rural/Urban Development, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46304&r=lab |
| By: | Berthoud R (Institute for Social and Economic Research); Hancock R (School of Medicine, Health Policy and Practice, University of East Anglia) |
| Abstract: | The Attendance Allowance (AA) and the Disability Living Allowance care component (DLAc) are paid to elderly and/or disabled people who need help with activities of daily living Together, these benefits cost £9.2 billion per year Since the need for care is the main criterion entitling people to claim, one important question is whether they receive (enough) care. The Wanless review recommended integrating support for care costs from these disability benefits into the care system to improve targeting of resources. This paper discusses the impact of AA/DLAc on the well-being of disabled adults, and assesses the likely advantages, and disadvantages, of a possible reallocation of resources |
| Date: | 2008–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2008-40&r=lab |
| By: | Lunn, Pete (ESRI) |
| Abstract: | In the absence of longitudinal data, recall data is used to examine participation in sport. Techniques of survival analysis are adapted and applied to illuminate the dynamics of sporting life. The likelihood of participation has a distinct pattern across the life-course, rising to a peak at 15 years of age, falling sharply in late teenage years and more gradually during adulthood. Logistic regressions and Cox regressions reveal strong effects on participation of gender, cohort and socioeconomic status, which vary over the life-course and by type of sport. The findings add significantly to previous work and have implications for policymakers wishing to increase physical activity. |
| Keywords: | Sporting participation/Health/Survival analysis/Recall data |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp272&r=lab |
| By: | Shawn Fremstad |
| Abstract: | This issue brief examines the Child Tax Credit (CTC) in its current form and finds that many of the families with children most in need of additional assistance receive no or little benefit from the credit. The paper analyzes a restructuring of the present CTC put forth by the Brookings Institute and goes on to propose amending the CTC to make it both more inclusive and progressive. |
| Keywords: | child tax credit |
| JEL: | I I3 I38 H H2 H24 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2009-02&r=lab |
| By: | James Buchan; Susanna Baldwin; Miranda Munro |
| Abstract: | The UK has a population of 56 million, and most healthcare is delivered through the National Health Service (NHS). The NHS employs more than one million staff. In the late 1990s shortages of skilled staff were a main obstacle to improving services in the NHS. The response by government was to “grow” the NHS workforce. There are four main policy options to “grow” the workforce- increase home based training; improve retention rates of current staff (to reduce need to recruit additional staff); improve “return” of staff currently not practising; and internationally recruit health professionals. International recruitment was used to achieve rapid growth in the NHS workforce. It was facilitated by fast tracking work permits for health professionals, by targeting recruits in specified countries, using specialist recruitment agencies, and by co-ordinating local level recruitment within the NHS (...)<BR>Le Royaume-Uni compte 56 millions d’habitants, et en matière de santé, la plupart des prestations y sont fournies par le biais du National Health Service (NHS). Le NHS emploie plus d’un million d’agents. A la fin des années 90, un des principaux obstacles à l’amélioration du NHS était la pénurie de personnel qualifié. La réponse du gouvernement a consisté à « étoffer » les effectifs du NHS. Pour ce faire, les pouvoirs publics disposent de quatre grands moyens d’action possibles : développer la formation dispensée dans le pays même, améliorer le taux de maintien des agents en poste (ce qui permet de diminuer les besoins en recrutement de nouveaux agents), convaincre les agents ayant cessé d’exercer pour le moment de « reprendre du service », et recruter des professionnels de la santé à l’international. Soucieux d’étoffer rapidement ses effectifs, le NHS a eu recours au recrutement à l’international. L’opération a été facilitée par l’application de la procédure de traitement accéléré des demandes de permis de travail pour les professionnels de la santé, par le ciblage des personnes à recruter dans des pays précis (en faisant appel à des agences de recrutement spécialisées), et par la coordination du recrutement au niveau local au sein du NHS (...) |
| Date: | 2008–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaad:38-en&r=lab |
| By: | James J. Heckman (University of Chicago) |
| Abstract: | This paper discusses (a) the role of cognitive and noncognitive ability in shaping adult outcomes, (b) the early emergence of differentials in abilities between children of advantaged families and children of disadvantaged families, (c) the role of families in creating these abilities, (d) adverse trends in American families, and (e) the effective- ness of early interventions in offsetting these trends. Practical issues in the design and implementation of early childhood programs are discussed. |
| Keywords: | productivity, high school dropout, ability gaps, family influence, noncognitive skills, early interventions |
| Date: | 2008–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:200833&r=lab |
| By: | Milo Bianchi (Paris School of Economics); Paolo Buonanno (Università di Bergamo); Paolo Pinotti (Banca d'Italia) |
| Abstract: | In this paper we examine the empirical relationship between immigration and crime across Italian provinces during the period 1990-2003. Drawing on police data, we first document that the size of the immigrant population is positively correlated with the incidence of property crimes and with the overall crime rate. We then use instrumental variables based on migration towards other European countries to identify the causal impact of exogenous changes in the immigrant population of Italy. According to these estimates, immigration increases only the incidence of robberies and has no effect on all other types of crime. Since robberies represent a very small fraction of all criminal offences, the effect on the overall crime rate is not significantly different from zero. |
| Keywords: | immigration, crime |
| JEL: | F22 J15 K42 R10 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_698_08&r=lab |
| By: | Brian Duncan (Department of Economics, University of Colorado at Denver); Stephen J. Trejo (Department of Economics, University of Texas at Austin, and CReAM) |
| Abstract: | Using microdata from the 2000 U.S. Census and from recent years of the Current Population Survey (CPS), we investigate whether selective intermarriage and endogenous ethnic identification interact to hide some of the intergenerational progress achieved by the Mexican-origin population in the United States. First, using Census data for U.S.-born youth ages 16-17 who have at least one Mexican parent, we estimate how the Mexican identification, high school dropout rates, and English proficiency of these youth depend on whether they are the product of endogamous or exogamous marriages. Second, we analyze the extent and selectivity of ethnic attrition among second-generation Mexican-American adults and among U.S.-born Mexican-American youth. Using CPS data, we directly assess the influence of endogenous ethnicity by comparing an “objective” indicator of Mexican descent (based on the countries of birth of the respondent and his parents and grandparents) with the standard “subjective” measure of Mexican self-identification (based on the respondent’s answer to the Hispanic origin question). For third-generation Mexican-American youth, we show that ethnic attrition is substantial and could produce significant downward bias in standard measures of attainment which rely on ethnic self-identification rather than objective indicators of Mexican ancestry. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:0902&r=lab |
| By: | Mariacristina De Nardi; Eric French; John Bailey Jones |
| Abstract: | Rich people, women, and healthy people live longer. We document that this heterogeneity in life expectancy is large, and we use an estimated structural model to assess its effect on the elderly's saving. We find that the differences in life expectancy related to observable factors such as income, gender, and health have large effects on savings, and that these factors contribute by similar amounts. We also show that the risk of outliving one's expected lifespan has a large effect on the elderly's saving behavior. |
| JEL: | D1 D31 D91 E2 E21 E6 H31 I1 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14653&r=lab |
| By: | Friedrich Poeschel |
| Abstract: | We model signalling in two-sided sequential search with heterogeneous agents and transferable utility. Search via meetings is time-consuming and thereby costly due to discounting. Search via signals is costless, so that agents can avoid almost all search costs if only the signals are truthful. We show that signals will indeed be truthful if the match output function is su ciently super- modular. The unique separating equilibrium is then characterised by perfect positive assortative matching despite the search frictions. In this equilibrium, agents successfully conclude their search after a single meeting, and overall match output is maximised. These results continue to hold when there are also explicit search costs in addition to discounting. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pse:psecon:2008-71&r=lab |
| By: | James J. Heckman (University of Chicago, University College Dublin, and American Bar Foundation); Lance J. Lochner (University of Western Ontario); Petra E. Todd (University of Pennsylvania) |
| Abstract: | The internal rate of return to schooling is a fundamental economic parameter that is often used to assess whether expenditure on education should be increased or decreased. This paper considers alternative approaches to estimating marginal internal rates of return for different schooling levels. We implement a general nonparametric approach to estimate marginal internal rates of return that take into account tuition costs, income taxes and nonlinearities in the earnings-schooling-experience relationship. The returns obtained by the more general method differ substantially from Mincer returns in levels and in their evolution over time. They indicate relatively larger returns to graduating from high school than from graduating from college, although both have been increasing over time. |
| Date: | 2008–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:200831&r=lab |