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on Labour Economics |
| By: | Anna BATYRA (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Henri SNEESSENS (CREA, UniversitŽ du Luxembourg, IRES, UniversitŽ catholique de Louvain, and IZA, Bonn) |
| Abstract: | We use a calibrated general equilibrium model with heterogeneous labor and search to evaluate the quantitative effects of various labor tax cut scenarios. The focus is on skill heterogeneity combined with downward wage rigidities at the low end of the skill ladder. Workers can take jobs for which they are overeducated. We compare targeted and non-targeted tax cuts, both with or without over-education effects. Introducing over-education changes substantially the employment, productivity and welfare effects of a tax cut, although tax cuts targeted on the least skilled workers always have larger effects. |
| Keywords: | Minimum Wage, Job Creation, Job Destruction, Job Competition, Search Unemployment, Taxation, Computable General Equilibrium Models |
| JEL: | C68 E24 J64 |
| Date: | 2010–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2010021&r=lab |
| By: | Matthew Brzozowski; Thomas F. Crossley |
| Abstract: | We use an unusually rich Canadian survey to examine how post-job-loss behaviour and outcomes vary with age of the job loser. We find that older job losers experience greater postdisplacement joblessness, and are less likely to return quickly to satisfactory employment. We show that this apparent age effect is not a job tenure effect or wealth effect. We also find that older job losers, compared to mid-career job losers, are as likely to report searching for work, but that they search less intensely (reporting fewer hours of search, and lower out of pocket expenditures on search). They are also less likely to retrain, less likely to undertake a geographic move, and less likely to switch occupations. Thus, the data suggest older job losers are less likely to make career investments after job loss. This may be a rational response to a shorter time horizon, or to more limited labour market opportunities. |
| Keywords: | job loss, job search, older workers |
| JEL: | J60 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:sedapp:264&r=lab |
| By: | Severnini, Edson; Firpo, Sergio |
| Abstract: | School violence has recently become a central concern among teachers, students, students' parents andpolicymakers. Violence can induce behaviors on educational agents that go against the goals ofimproving the quality of education and increasing school attendance. In fact, there is evidence thatschool environmental characteristics and student performance and behavior at school are related.Although school violence may have a direct impact on students’ performance, such impact has not yetbeen quantified. In this paper, we investigate this issue using Brazilian data and show that, on average,students who attended more violent schools had worse proficiency on a centralized test carried out bythe Brazilian Ministry of Education, even when we controlled for school, class, teachers and studentcharacteristics. We also show that school violence affects more the students from the bottom of theproficiency distribution. Furthermore, we find out that besides the direct effect on student proficiency,it seems that school violence has an indirect effect on it operating through teacher turnover. Indeed, weshow that the occurrence of violent episodes in a school decreases the probability of a class in thatschool having only one teacher during the academic year, and increases the probability of that classhaving more than one teacher (teacher turnover). |
| Date: | 2010–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:eesptd:236&r=lab |
| By: | Yamamura, Eiji; Mano, Yukichi |
| Abstract: | We analyze the effect of a wife’s human capital on her husband’s earnings, using individual-level data for Japan in the period 2000?2003. We find a positive association between a wife’s education and her husband’s earnings, which can be attributed to the assortative mating effect as well as the positive effect of an educated wife on her husband’s productivity. We divide the sample into those couples with non-working wives and those with working wives, and also employ an estimation strategy proposed by Jepsen (2005), attempting to control for the assortative mating effect. Our regression analysis provides suggestive evidence that educated wives increase their husbands’ productivity and earnings only when they are non-workers and have sufficient time to support their husbands. (120 words) |
| Keywords: | earnings, human capital, marriage, the family, assortative mating, cross-productivity effect within marriage. |
| JEL: | J24 J12 |
| Date: | 2010–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23609&r=lab |
| By: | Margaret Denton; Jennifer Plenderleith; James Chowhan |
| Abstract: | While some retirement is welcomed and on-time, other retirements are involuntary or forced due to the loss of a job, an early retirement incentive, a health problem, mandatory retirement, lack of control with too many job strains, or to provide care to a family member. An analysis of the 2002 Canadian General Social Survey reveals that 27% of retirees retired involuntarily. This research focuses on the disabled population in Canada and considers factors that influence voluntary and involuntary retirement. Further, consideration is given to the economic consequences of retiring involuntarily. This research will examine issues surrounding retirement and disability through statistical analysis of the Canadian Participation and Activity Limitations Survey (PALS) 2006 data. Methods include the use of descriptive statistics and logistic regression analysis to determine the characteristics associated with involuntary retirement. This study found that those who retired involuntarily were more likely to have the following socio-demographic and socio-economic characteristics: age 55 or less, less than high school education, live in Quebec, rent their home, and have relatively low income. They were also more likely to be worse off financially after retirement and to be receiving social assistance or a disability benefit. In terms of disability, the likelihood of retiring involuntarily was greater for those with poor health at retirement, the age of onset was over 55, higher level of severity, and multiple types of disability. For the discussion, a social inequalities framework is used, where health selection into involuntary retirement depends on social location defined by age and education. Policy initiatives that reduce the effects of disability, and allow individuals to remain in or return to the labour force such as workplace accommodations are discussed. |
| Keywords: | Retirement, Disabled, Health, Labour Force |
| JEL: | J14 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:qseprr:439&r=lab |
| By: | David Marsden |
| Abstract: | In recent years, British labour markets have been characterised by a decline of institutionalregulation of entry routes into many occupations and internal labour markets. This paperexamines this change by comparing occupational labour markets for selected occupations inwhich institutional regulation has remained largely intact with those in which entry hasbecome more fluid. It argues that in the latter case, structured entry paths, which werecharacterised by competition at the ports of entry, have given way to extended entrytournaments in which competition is spread over a much longer time period. Using data fromthe New Earnings Survey panel for 1975-2001, it relates the comparatively greater growth inearnings inequality in these occupations to the emergence of extended entry tournaments. Aspay at the top has risen, greater competition for entry at the bottom has held down pay anddepressed conditions. It argues that many of the aspirant members of these occupationscompete for entry for too long, and then become trapped as it is too late to changeoccupation. |
| Keywords: | Wage Level and Structure, Wage Differentials by Skill, Training, Professional Labor Markets and Occupations |
| JEL: | J31 J44 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0989&r=lab |
| By: | David Johnson (wilfrid Laurier University) |
| Abstract: | This study compares student outcomes at British Columbia elementary schools where students come from similar socio-economic backgrounds, thus revealing "good" schools where principals, teachers and staff are making a positive difference to student performance. This alternative means of identifying the best schools in the province shows that there are both public and independent schools among the top performers. The resulting school ratings by percentile are useful not only to parents, but also to teachers, school board administrators and education officials who wish to identify schools whose practices deserve imitation. |
| Keywords: | Education Papers, British Columbia elementary schools, socio-economic and education environments, Foundation Skills Assessment (FSA) |
| JEL: | I21 L33 H44 I28 H75 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:100&r=lab |
| By: | Møen, Jarle (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration); Tjelta, Martin (Finance and Management Department, University of Stavanger) |
| Abstract: | Grades are important for admission of students in most higher education programmes. Analysing admission and student performance data at a major Norwegian business school, we find that the grading practice of teachers at regional colleges sending students to the school is affected by the average performance of the students being graded. Teachers at colleges recruiting good students from upper secondary school tend to be strict in their grading practice, while teachers at colleges recruiting less good students tend to follow a lenient practice. This has implications for the interpretation of grades and hence for optimal admission procedures. We develop a methodology to assess the consequences of differential grading standards. Approximately ten percent of the students in our data are admitted at the expense of more competent students. We demonstrate costs for the school admitting wrong students and in particular for the rejected students. |
| Keywords: | Grading practices; Differential grading standards; Admission policy |
| JEL: | A20 I21 |
| Date: | 2010–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2010_005&r=lab |
| By: | Tomas Cvrcek |
| Abstract: | The growing education and employment of women are usually cited as crucial forces behind the decline of marriage since 1960. However, both trends were already present between 1900 and 1960, during which time marriage became increasingly widespread. This early period differed from the post-1960 decades due to two factors primarily affecting men, one economic and one demographic. First, men’s improving labor market prospects made them more attractive as marriage partners to women. Second, immigration had a dynamic effect on partner search costs. Its short-run effect was to fragment the marriage market, making it harder to find a partner of one’s preferred ethnic and cultural background. The high search costs led to less marriage and later marriage in the 1890s and 1900s. As immigration declined, the long-run effect was for immigrants and their descendants to gradually integrate with American society. This reduced search costs and increased the marriage rate. The immigration primarily affected the whites’ marriage market which is why the changes in marital behavior are much more pronounced among this group than among blacks. |
| JEL: | J12 J62 N3 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16161&r=lab |
| By: | Panos Sousounis (Department of Economics, University of the West of England) |
| Abstract: | Using data from the British Household Panel Survey for the years 1998-2005, this study estimates the impact of work-related training on earnings levels. Different measures for general and specific training are constructed from available information. The analysis diverges from the standard fixed effects framework for earnings determination modelling and presents evidence in support of the predictions of the standard human capital theory with regards to training sponsoring using a random effects formulation for the earnings equation suggested by Nijman and Verbeek (1992) for controlling for attrition bias in unbalanced panels. |
| Keywords: | work-related training, human capital, earnings |
| JEL: | J24 J31 C23 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:0919&r=lab |
| By: | Margaret Denton; Jennifer Plenderleith |
| Abstract: | The purpose of this research paper is to contribute to knowledge regarding employer pension plan (EPP) inequality in Canada. Information on EPP coverage and value is analyzed using the 1999 and 2005 Surveys of Financial Security. The results indicate that women, persons who may live alone, landed immigrants, and language minorities are at a disadvantage in their EPP coverage and accrued value. In addition, age, educational attainment, occupation, industry of employment, union membership, total personal income, province, and size of urban residence figure importantly in EPP coverage. Furthermore, age, educational attainment, industry of employment, total personal income, province and size of urban residence are all-important determinants of the termination value of EPPs. To identify inequalities in EPP coverage among the sub-populations, the researchers use multivariate analysis. This allows an identification of inequalities that are not a direct result of differences in age, gender, level of education, location, or position in the labour market. Findings indicate that differences in EPP coverage for women, persons who may live alone, landed immigrants and language minorities are primarily due to differences in these other characteristics. However, the lower EPP value witnessed by these subpopulations cannot be explained by individual or labour market characteristics. |
| Keywords: | Employer Pension Plans, Registered Pension Plans, coverage, value, inequality, seniors, landed immigrants, gender differences, minority language |
| JEL: | J14 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:qseprr:438&r=lab |
| By: | John Micklewright (Depatment of Quantitative Social Science - Institute of Education, University of London.); Sylke V. Schnepf (School of Social Sciences, University of Southampton, UK.); Pedro N. Silva (Instituto Brasileiro de Geografia e Estatistica and Southampton Statistical Sciences Research Institute, University of Southampton.) |
| Abstract: | Investigation of peer effects on achievement with sample survey data on schools may mean that only a random sample of peers is observed for each individual. This generates classical measurement error in peer variables, resulting in the estimated peer group effects in a regression model being biased towards zero under OLS model fitting. We investigate the problem using survey data for England from the Programme for International Student Assessment (PISA) linked to administrative microdata recording information for each PISA sample member's entire year cohort. We calculate a peer group measure based on these complete data and compare its use with a variable based on peers in just the PISA sample. The estimated attenuation bias in peer effect estimates based on the PISA data alone is substantial. |
| Keywords: | peer effects, measurement error, school surveys, sampling variation |
| JEL: | C21 C81 I21 |
| Date: | 2010–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1013&r=lab |
| By: | Panos Sousounis (Department of Economics, University of the West of England) |
| Abstract: | Despite the extensive empirical literature documenting the determinants of training participation and a broad consensus on the influence of previous educational attainment on the training participation decision, there is hardly any reference in the applied literature to the role of past experience of training on future participation. This paper presents evidence on the influence of serial persistence in the work-related training participation decision of British employees. Training participation is modelled as a dynamic random effects probit model and estimated using three different approaches proposed in the literature for tackling the initial conditions problem by Heckman (1981), Wooldrgidge (2005) and Orme (2001). The estimates are then compared with those from a dynamic limited probability model using GMM techniques, namely the estimators proposed by Arellano and Bond (1991) and Blundell and Bond (1998). The results suggest a strong state dependence effect, which is robust across estimation methods, rendering previous experience as an important determining factor in employees’ work-related training decision. |
| Keywords: | state dependence; unobserved heterogeneity; training; dynamic panel data models; generalised method of moments |
| JEL: | C23 C25 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:0920&r=lab |
| By: | Leonardo Becchetti (University of Rome “Tor Vergata”); Pierluigi Conzo (University of Rome “Tor Vergata”) |
| Abstract: | Two crucial problems when research agencies or donors need to asses empirically the microfinance/children education nexus on already operating organizations are lack of availability of panel data and selection bias. We propose an original approach which tackles these problems by combining retrospective panel data, fixed effects and comparison between pre and post-treatment trends. The relative advantage of our approach vis-à-vis standard cross-sectional estimates (and even panels with just two observations repeated in time) is that it allows to analyse the progressive effects of microfinance on borrowers. With this respect our paper gives an answer to the widespread demand of impact methodologies required by regulators or by funding agencies which need to evaluate the current and past performance of existing institutions. We apply our approach to a sample of microfinance borrowers coming from two districts of Buenos Aires with different average income levels. By controlling for survivorship bias and heterogeneity in time invariant and time varying characteristics of respondents we find that years of credit history have a positive and significant effect on child schooling conditional to the borrower’s standard of living and distance from school. |
| Keywords: | child schooling, microfinance, retrospective data, impact evaluation. |
| JEL: | D13 G20 I21 J22 J24 O12 O16 O18 O54 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2010-173&r=lab |
| By: | Paolo Brunori (University of Bari and CORE Louvain-la-Neuve); Vito Peragine (University of Bari); Laura Serlenga (University of Bari) |
| Abstract: | In 2001 the Italian tertiary education system embarked in a broad process of reform. The main novelty brought by the reform was a reduction of the length of study to get a first level degree together with the introduction of a 2-years, second level, master degree. This paper aims at studying the effects of the reform in terms of fairness in educational opportunity. In order to do so we first define fairness criteria following a well-developed responsibility sensitive egalitarian literature, we then discuss existing inequality of opportunity measures consistent with these criteria, we show their relationship, and we adapt them to the educational framework. We finally employ this set of measures to show the evolution of fairness in the access to university in Italy before and after the reform. |
| Keywords: | Equality of opportunity, higher education. |
| JEL: | D31 D63 C14 I2 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2010-175&r=lab |
| By: | Vincent A. Hildebrand; Philippe Van Kerm |
| Abstract: | Evidence of the association between wages and body size –typically measured by the body mass index– appears to be sensitive to estimation methods and samples, and varies across gender and ethnic groups. One factor that may contribute to this sensitivity is the non-linearity of the relationship. This paper analyzes data from the European Community Household Panel survey and uses semi-parametric techniques to avoid functional form assumptions and assess the relevance of standard models. If a linear model for women and a quadratic model for men fit the data relatively well, they are not entirely satisfactory and are statistically rejected in favour of semiparametric models which identify patterns that none of the parametric specifications capture. Furthermore, when we use height and weight in the models directly, rather than equating body size with the body mass index, the semi-parametric models reveal a more complex picture with height having additional effects on wages. We interpret our results as consistent with the existence of a wage premium for physical attractiveness rather than a penalty for unhealthy weight. |
| Keywords: | Body Mass Index; obesity; wages; partial linear models; ECHP |
| JEL: | C14 J31 J71 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:sedapp:269&r=lab |
| By: | Courtney Harold Van Houtven; Norma B. Coe |
| Abstract: | A long and still growing strand of the retirement literature examines the role financial incentives play in the timing of the retirement decision. A more recent second strand of work has focused on the role of health shocks in the retirement decision. This paper combines these two components of the literature in order to measure the marginal impact of current wealth (including pension accrual), forward-looking financial incentives (peak-value pension wealth), and health shocks on married individuals’ retirement decision. This paper helps to clarify whether previously omitted forward-looking financial incentives can explain the strong role attributed to health shocks in the retirement decisions of coupled individuals. We find that financial incentives are the most important determinant of retirement behavior empirically. A husband is about half as responsive to his wife’s financial incentives as he is to his own. Interestingly, we find that married men are responsive to their wives’ health shocks, on both the intensive and extensive margin, but find wives’ decisions concerning work are largely unaffected by their husbands’ health shocks. |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2010-6&r=lab |
| By: | Fabian Waldinger |
| Abstract: | I investigate the effect of faculty quality on Ph.D. student outcomes. To address theendogeneity of faculty quality I use exogenous variation provided by the expulsion ofmathematics professors in Nazi Germany. I find that faculty quality is a very importantdeterminant of short and long run Ph.D. student outcomes. A one standard deviation increasein faculty quality increases the probability of publishing the dissertation in a top journal by 13percentage points, the probability of becoming full professor by 10 percentage points, theprobability of having positive lifetime citations by 16 percentage points, and the number oflifetime citations by 6.3. |
| Keywords: | PhD students, university quality, faculty quality, Nazi Germany, dismissal of professors |
| JEL: | I2 I21 J24 N34 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0985&r=lab |
| By: | Cormac Ó Gráda (University College Dublin) |
| Abstract: | This paper complements a much larger study of school attendance in pre-famine Ireland by FitzGerald (2010). It exploits some of the data generated by that study to analyze further some of the determinants of schooling and literacy in the 1820s and 1840s. |
| Keywords: | Ireland, economic history, literacy, human capital |
| Date: | 2010–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:201022&r=lab |