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on Labour Economics |
| By: | Giovanni Sulis |
| Abstract: | This paper provides estimates of the average returns to labour market experience and .rm-speci.c tenure for a sample of young Italian male workers. Using instrumental variables, I take into account endogeneity and selection problems generated by job matching and individual fixed effects. Results indicate that OLS estimates for experience and tenure are downward biased and that white collars workers enjoy higher returns to general and specific skills than blue collars. |
| Keywords: | Wages, Experience, Tenure, Search, Endogeneity, Italy |
| JEL: | J24 J31 J62 |
| Date: | 2009–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:edn:esedps:189&r=lab |
| By: | Bulent Guler; Fatih Guvenen; Giovanni L. Violante |
| Abstract: | Search theory routinely assumes that decisions about the acceptance/rejection of job offers (and, hence, about labor market movements between jobs or across employment states) are made by individuals acting in isolation. In reality, the vast majority of workers are somewhat tied to their partners--in couples and families--and decisions are made jointly. This paper studies, from a theoretical viewpoint, the joint job-search and location problem of a household formed by a couple (e.g., husband and wife) who perfectly pools income. The objective of the exercise, very much in the spirit of standard search theory, is to characterize the reservation wage behavior of the couple and compare it to the single-agent search model in order to understand the ramifications of partnerships for individual labor market outcomes and wage dynamics. We focus on two main cases. First, when couples are risk averse and pool income, joint search yields new opportunities--similar to on-the-job search--relative to the single-agent search. Second, when the two spouses in a couple face job offers from multiple locations and a cost of living apart, joint-search features new frictions and can lead to significantly worse outcomes than single-agent search. |
| JEL: | E24 J61 J64 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15011&r=lab |
| By: | John T. Addison (Department of Economics, University of South Carolina, Queen’s University Belfast, and GEMF, University of Coimbra); Paulino Teixeira (Faculty of Economics/GEMF, University of Coimbra); Thomas Zwick (Munich School of Management, Ludwig-Maximilians University Munich, and Centre for European Economic Research/ZEW, Mannheim) |
| Abstract: | Low-skilled workers enjoy a large wage advantage in German works council establishments. Since job tenure is also longer for these workers, one explanation might be rent-seeking. If the premium is a compensating wage differential (or a return to unmeasured ability), it should not lead to higher tenure; whereas if it is (partly) rent, lower quits should lead to longer tenure at plants with works councils. Our analysis uses the Card and de la Rica (2006) tenure model, and although the association between skill level and the works council tenure gap is positive it fails to achieve statistical significance in a single equation framework. However, running the tenure equation for separate skill quintiles, we find that those with the highest wage premium have the greatest tenure. As a result, although we cannot be certain that the works council wage mark-up of low-skilled workers is necessarily a non-competitive rent, the observed pattern of job tenure across different skill subsamples is not after all inconsistent with rent-seeking behavior. |
| Keywords: | works councils, rent seeking, matched employer-employee data, wages, job tenure. |
| JEL: | J31 J50 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2009-04&r=lab |
| By: | Peter Haan; Victoria Prowse |
| Abstract: | We estimate a dynamic structural life-cycle model of employment, non-employment and retirement that includes endogenous accumulation of human capital and intertemporal non-separabilities in preferences. Additionally, the model accounts for the effect of the tax and transfer system on work incentives. The structural parameter estimates are used to evaluate the effects of a tax reform targeted at low income individuals on employment behavior and retirement decisions. |
| Keywords: | Life-cycle labor supply, income taxation |
| JEL: | C23 C25 J22 J64 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp185&r=lab |
| By: | Janine Leschke (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, ETUI - European Trade Union Institute); Maria Jepsen (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, ETUI - European Trade Union Institute) |
| Abstract: | Much of the gender inequality in the labour market is brought about by women's dual role as worker and (potential) carer. In this regard transitional arrangements can contribute to mitigate the risks associated with parenthood and to distribute risks more equally. This paper looks at these issues in light of the transitional labour market (TLM) concept. The first section discusses various gender-equality models which imply different ways of organising, for example, childcare, parental leave and flexible working time. Sections two and three look at gender inequalities in labour market outcomes and discuss transitional arrangements that can contribute to the achievement of more gender equality in six countries taken as examples. The last section discusses the results of the labour market and institutional analysis in light of the TLM concept. |
| Keywords: | Gender, labour market, transitional labour markets, childcare, parental leave, flexible working time. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00384510_v1&r=lab |
| By: | John Schmitt |
| Abstract: | This report uses national data from the Current Population Survey (CPS) to show that unionization raises the wages of the typical service sector worker by 10.1 percent compared to their non-union peers. The study goes on to show that unionization also increases the likelihood that a service sector worker will have health insurance and a pension. The report also notes that workers with service jobs benefit as much from unionization as workers with manufacturing jobs. |
| Keywords: | unions, service sector, wages, benefits, pension |
| JEL: | J J1 J3 J31 J32 J41 J5 J58 J6 J68 J88 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2009-14&r=lab |
| By: | Almut Balleer (Universität Bonn, D-53012 Bonn, Germany.); Ramon Gomez-Salvador (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Jarkko Turunen (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.) |
| Abstract: | We use a cohort based model to analyse determinants of labour force participation for disaggregated groups of workers in the euro area and the five largest euro area countries. The model captures age and cohort effects as indicators of (unobserved) determinants of participation behaviour. We use these effects and observed determinants to construct trends and projections of labour supply. Our results suggest that age and cohort effects can account for a substantial part of the recent increase in participation. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. There is substantial variation in the estimated age and cohort effects across countries. Looking forward, positive cohort effects for women are not large enough to compensate for the downward impact of population ageing on participation rates in the euro area. JEL Classification: J11, J21. |
| Keywords: | labour force participation, cohort analysis, labour market institutions. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:200901049&r=lab |
| By: | Jody Heymann; Hye Jin Rho; John Schmitt; Alison Earle |
| Abstract: | This report finds that the U.S. is the only country among 22 countries ranked highly in terms of economic and human development that does not guarantee that workers receive paid sick days or paid sick leave. Under current U.S. labor law, employers are not required to provide short-term paid sick days or longer-term paid sick leave. By relying solely on voluntary employer policies to provide paid sick days or leave to employees, tens of millions of U.S. workers are without paid sick days or leave. As a result, each year millions of American workers go to work sick, lowering productivity and potentially spreading illness to their coworkers and customers. |
| Keywords: | paid time off, paid sick leave, productivity |
| JEL: | O O51 O52 O57 I I18 H H5 H51 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2009-18&r=lab |
| By: | Pandey, Manoj K. |
| Abstract: | The paper analyzes the effect of health status on labour force participation for aged Indians. The potential endogeneity in health and labour force participation has been taken care of by using full information maximum likelihood (FIML) and estimation results are compared with alternative two-stage methods. Results show that health has a significant and positive effect on labour force participation of the aged. In order to keep enough supply of elderly in the labour market, sufficient health care is necessary and hence more investment in this sector is imperative. |
| Keywords: | self-reported health status; labour force participation; elderly; endogeneity; exogeneity; simultaneous equation model |
| JEL: | J14 I18 J21 C35 |
| Date: | 2009–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15394&r=lab |
| By: | Manoj K Pandey |
| Abstract: | The paper analyzes the effect of health status on labour force participation for aged Indians. The potential endogeneity in health and labour force participation has been taken care of by using full information maximum likelihood (FIML) and estimation results are compared with alternative two-stage methods. Results show that health has a significant and positive effect on labour force participation of the aged. In order to keep enough supply of elderly in the labour market, sufficient health care is necessary and hence more investment in this sector is imperative.[MPRA Paper No. 15394] |
| Keywords: | self-reported health status; labour force participation; elderly; endogeneity; exogeneity; simultaneous equation model |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1987&r=lab |
| By: | Guido Cozzi; Silvia Galli |
| Abstract: | What is the most innovation-enhancing level of patent protection for the new ideas generated within the framework of multi-stage sequential innovation? How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? What does the common law system imply on the macroeconomic responses to institutional change? We show how the jurisprudential changes in intellectual property rights witnessed in the US after 1980 can be related to the well-known increase in wage inequality and in education attainments. A Schumpeterian general equilibrium approach is followed. |
| Keywords: | Basic and Applied R&D, Sequential Innovation, Skill Premium, Inequality and Education, Research Exemption, Common Law |
| JEL: | O31 O33 O34 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2009_20&r=lab |
| By: | Francesco Furlanetto (Norges Bank (Central Bank of Norway)) |
| Abstract: | In this paper we study the impact of an expansion in public spending in a credit constrained economy with sticky wages. The flexible wage version of the model implies strong expansionary effects on output and consumption but also a counterfactual increase in real wages. The introduction of sticky wages, besides being a realistic addition, solves these problems and preserves the expansionary effects on output and consumption. Moreover, once we introduce segmentation in the labor market, sticky wages are even essential to obtain expansionary effects. |
| Keywords: | Sticky wages, rule-of-thumb consumers, fiscal shocks, financial frictions. |
| JEL: | E32 E62 |
| Date: | 2009–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:bno:worpap:2009_08&r=lab |
| By: | David R. Howell and Miriam Rehm (New School for Social Research, New York, NY) |
| Keywords: | european unemployment; |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:epa:cepawp:2009-9&r=lab |
| By: | Roger E. A. Farmer |
| Abstract: | This paper uses a model with a continuum of equilibrium unemployment rates to explore the effectiveness of fiscal policy. The existence of multiple steady state unemployment rates is explained by the absence of markets for the inputs to a search technology for matching unemployed workers with vacant jobs. I explain the current financial crisis as a shift to a high unemployment equilibrium, induced by the self-fulfilling beliefs of market participants about asset prices. Using this model, I ask two questions. 1) Can fiscal policy help us out of the crisis? 2) Is there an alternative to fiscal policy that is less costly and more effective? The answer to both questions is yes. |
| JEL: | E2 E24 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15021&r=lab |
| By: | Susanne Neckermann; Reto Cueni; Bruno S. Frey |
| Abstract: | Behavioral economics documents the importance of status and self-image concerns in the workplace, but is largely silent about how to instrumentalize them to induce effort. Awards - widespread in the corporate sector and elsewhere - are motivators that derive their value from such social concerns. Panel data from the call center of a large international bank allow us to estimate the impact of receiving an award on effort. The performance of winners proves to be significantly higher than that of comparable nonrecipients after the award has been presented. This increase in work effort is sizeable, robust, and not driven by reverse causation. |
| Keywords: | Awards, motivation, non-monetary compensation, event-study, incentives |
| JEL: | C23 J33 M52 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:411&r=lab |
| By: | Hoyt Bleakley (Graduate School of Business, University of Chicago, NBER, and CReAM); Aimee Chin (Department of Economics, University of Houston, and NBER) |
| Abstract: | Are U.S. immigrants’ English proficiency and social outcomes the result of their cultural preferences, or of more fundamental constraints? Using 2000 Census microdata, we relate immigrants’ marriage, fertility and residential location variables to their age at arrival in the U.S., and in particular whether that age fell within the “critical period” of language acquisition. We interpret the differences between younger and older arrivers as effects of English-language skills and construct an instrumental variable for English-language skills. Two-stage-least-squares estimates suggest that English proficiency increases the likelihood of divorce and intermarriage. It decreases fertility and, for some groups, ethnic enclave residence. |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:200913&r=lab |
| By: | Aurora Galego (Department of Economics, University of Évora); António Caleiro (Department of Economics, University of Évora) |
| Abstract: | A traditional way of looking at the importance of universities assumes that these are sources of many positive effects from the point of view of the inputs, i.e. from a demand side perspective. In accordance to this perspective, the importance of a university can be measured by its multiplier effects, at a regional or national level. This perspective can be complemented with the analysis of the issues associated with the transition to work by their graduates. The paper thus analyses the factors that reveal to be explanatory of the time spent by first degree students of a small university in Portugal, the University of Évora, in order to enter the labour market. In doing so, we employ a sample of 767 students and estimate several specifications of discrete-time duration models. The results show that there are significant differences among the students from the several courses and highlight the importance of the final mark in the course. On the other hand, we did find any significant differences between male and female students. |
| Keywords: | Duration Models; Graduates; Labour Market; Universities |
| JEL: | J64 I23 C41 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:evo:wpecon:06_2009&r=lab |
| By: | Tyrowicz, Joanna; Wojcik, Piotr |
| Abstract: | This paper analyzes convergence of unemployment rates in Poland at NUTS4 level by testing nonlinear convergence, applying the modified KSS-CHLL for each pair of territorial units. The results suggest that actually the convergence is a rare phenomenon and occurs only in 1916 cases out of potential over 70 000 combinations. This paper inquires what systematic reasons contribute to this phenomenon. There are some circumstances under which unemployment convergence should be more awaited than in the others. These include sharing a higher level territorial authority, experiencing similar labour market hardship or sharing the same structural characteristics. For each of these three criteria we analyse the frequency of the dierential nonstationarity within groups (as evidence of convergence) and across groups (as evidence of "catching up"). |
| Keywords: | nonlinear convergence; stochastic convergence; unemployment; transition; Poland |
| JEL: | R58 E24 R23 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15384&r=lab |
| By: | Chris M. Herbst; Erdal Tekin |
| Abstract: | Child care subsidies play a critical role in facilitating the transition of disadvantaged mothers from welfare to work. However, little is known about the influence of these policies on children’s health and well-being. In this paper, we study the impact of subsidy receipt on low-income children’s weight outcomes in the fall and spring of kindergarten. The goals of our empirical analysis are twofold. We first utilize standard OLS and fixed effects methods to explore body mass index as well as measures of overweight and obesity. We then turn to quantile regression to address the possibility that subsidy receipt has heterogeneous effects on children’s weight at different points in the BMI distribution. Results suggest that subsidy receipt is associated with increases in BMI and a greater likelihood of being overweight and obese. We also find substantial variation in subsidy effects across the BMI distribution. In particular, child care subsidies have no effect on BMI at the lower end of the distribution, inconsistent effects in the middle of the distribution, and large effects at the top of the distribution. Our results point to the use of non-parental child care, particularly centerbased services, as the key mechanism through which subsidies influence children’s weight outcomes. |
| JEL: | I12 I18 J13 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15007&r=lab |
| By: | Jeremy Clark (University of Canterbury); Bonggeun Kim |
| Abstract: | We survey the emerging empirical literature that identifies a negative relationship between heterogeneity of race, ethnicity, income etc. at the neighborhood level, and individuals’ likelihood of contributing money or time to public goods or of trusting their neighbors. One problem in this literature is that the “neighborhoods” used are often by necessity overly broad, and arguably not those that individuals experience day to day. We present a simple model showing the effect of neighbourhood definition when measuring the effect of heterogeneity on peoples’ actions or attitudes. The broad definitions commonly used could produce a spurious negative effect of heterogeneity. With these limitations in view, we use panel data from the 1996, 2001 and 2006 censuses in New Zealand to test whether heterogeneity by race/ethnicity, birthplace, income or language negatively affect New Zealander’s probability of volunteering. Using cross sectional analysis, we estimate the effect of each kind of heterogeneity on volunteering at the “meshblock” (tract) and broader “area unit” levels. We control for confounding neighbourhood characteristics such as household income and deprivation, employment and education status, and religious affiliation. We next address the issue of endogenous self-selection to neighbourhood by comparing cross sectional and fixed effects analysis over the three years of the census. In results, we find that the size of neighbourhood unit significantly affects the estimated effects of heterogeneity on volunteering. Second, in cross sectional analysis at the meshblock level, volunteering appears reduced by heterogeneity of race/ethnicity and language, not affected by heterogeneity of birthplace, and increased by heterogeneity of household income. Third, in fixed effects analysis only racial/ethnic heterogeneity retains a direct negative effect on volunteering. |
| Keywords: | heterogeneity; volunteering |
| JEL: | D13 D64 H31 |
| Date: | 2009–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:09/09&r=lab |
| By: | Ankur Sarin |
| Abstract: | Using a survey of 1774 users and non-users in 84 slums in three metropolitan cities (Delhi, Ahmedabad and Kolkata), we try to understand the impact of mobiles on their social and economic lives. Urban slum dwellers spend significant amounts on communications, both for a first time acquisition of handset and SIM (nearly 40% of the average household earnings per month), as well as on going expenditure. However, a majority of respondents believe that the use of mobiles has led to an improvement in their economic situation and that these benefits are greater than ownership and usage costs. Mobile also appears to change how slum residents interact with each other. Despite reducing face-to-face interactions, mobile usage is associated with stronger social relationships. In comparing users and non-users, we find differences between users and non-users in terms of income, education and other social characteristics. We also find evidence of hierarchies within households, with women far more likely than men to be only infrequent mobile users or not to have access at all. While cost of a handset is the primary barrier to owning a mobile, non-owners report difficulty in using a mobile, clarity of charges for call-plans and information dissemination as other barriers to ownership.[W.P. No. 2009-02-05] |
| Keywords: | innovations; communication technologies; social impacts; slum; urban India; Research Design; Sample Design; Self-Employed; Regular Wage Activities; household disparities; Mobiles; cell phones; SIM; Productive Purposes; economic activities |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1984&r=lab |
| By: | Pandey, Manoj K. |
| Abstract: | The paper examines the association between marital status and self-reported health status of Indian men and women of different ages. Estimation results reveal linkages between marital status and health and show that this relationship is sensitive to the age and gender. Based on findings, the paper argues that a specific marital status in a particular stage of life could be an important target group for health policy intervention. |
| Keywords: | Ageing; Self-reported Health Status; Marital Status; Ordered Probit Regression |
| JEL: | J14 J12 C31 J16 I10 |
| Date: | 2008–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15370&r=lab |
| By: | Dean Baker |
| Abstract: | Economists are increasingly coming to the recognition that the current downturn is likely to be longer and more severe than they had expected at the time the last stimulus package was approved in February. As a result, there is likely to be interest in additional stimulus in order to boost the economy and lower the unemployment rate. This paper briefly outlines a method for Congress to quickly boost demand in the economy, while at the same time promoting important public ends: an employer tax credit for paid time off. This paid time off can take the form of paid family leave, paid sick days, paid vacation, or a shorter workweek. This tax credit can both provide short-term stimulus and also provide an incentive to restructure workplaces in ways that are more family friendly. It is possible that many workplaces may leave in place changes made to take advantage of this tax credit even after it has expired. |
| Keywords: | economic stimulus, fiscal stimulus, ARRA, recession, paid time off |
| JEL: | H H2 H25 H3 I I1 I18 E E2 E24 E6 E62 E64 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2009-13&r=lab |
| By: | Carole Brunet (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines) |
| Abstract: | Cette étude évalue à partir des données françaises du Panel Européen des Ménages (1994-2001) l'influence de la propriété immobilière sur la stabilité professionnelle des individus et sur les types d'issues associées en cas de fin d'emploi. Dans le prolongement d'une littérature récente sur les effets du statut résidentiel quant aux trajectoires individuelles sur le marché du travail, on examine si les propriétaires sont caractérisés par un risque de chômage plus élevé que les locataires. Parallèlement, on s'interroge également sur les effets du statut résidentiel au niveau de la mobilité professionnelle, au sens des transitions d'emploi à emploi. Après une revue de la littérature, une présentation générale des données permet un premier examen des liens entre statut résidentiel, mobilité professionnelle et mobilité résidentielle. Une modélisation économétrique des durées d'emploi est ensuite proposée et appliquée à un échantillon d'épisodes d'emploi issu du Panel Européen des Ménages. On apporte ainsi un éclairage sur des questions jusqu'à présent ignorées dans le cas français. Un impact positif du statut de propriétaire sur la durée d'emploi se dégage, en particulier si des contraintes financières liées au logement pèsent sur les individus, ou si un changement d'emploi doit impliquer une mobilité résidentielle. D'autre part, le statut de propriétaire exerce un impact significatif sur la réduction du risque de chômage, que l'on tienne compte ou non du type de contrat de travail. |
| Keywords: | durée d'emploi; transitions professionnelles; risque de chômage; statut résidentiel |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00384562_v1&r=lab |