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on Labour Economics |
| By: | van Ophem, Hans (University of Amsterdam); Hartog, Joop (University of Amsterdam); Berkhout, Peter (EIB Amsterdam) |
| Abstract: | We analyse a unique data set that combines reservation wage and actually paid wage for a large sample of Dutch recent higher education graduates. On average, accepted wages are almost 8% higher than reservation wages, but there is no fixed proportionality. We find that the difference between reservation wage and accepted wage is virtually random, as search theory predicts. We also find that most information contained in the accepted wage is included in the reservation wage, as one would predict if individuals are well informed about the wage structure that characterizes their labour market. |
| Keywords: | reservation wages, starting wages, job search |
| JEL: | J31 J69 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5435&r=lab |
| By: | Grün, Carola; Mahringer, Helmut; Rhein, Thomas (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "Does the low wage sector serve as a stepping stone towards integration into better-paid jobs or at least towards integration of jobless people into employment? There is evidence for a 'low-wage trap' and for a high risk of low-wage earners to get unemployed, but this may also be due to sorting effects and not to low-wage work itself. The present paper contributes to this debate analysing employment spells of male low-wage earners who had been unemployed before, with methods of continuous-time event history analysis. The present data have been retrieved from two large administrative micro-data sources: the IAB employment sample (IABS) for Germany, and a combination of social security data from the Austrian Social Insurance Institutions. Two possible exits of low-wage spells are focused on: exits to higher-paid employment (upward mobility vs. persistence), and exits to unemployment ('no pay-low pay cycle'). The results show shorter spell durations in Austria, pointing to a considerably higher fluctuation and labour turnover in the Austrian labour market. The influence of individual and firm-related characteristics and of the individual unemployment history on exit probabilities and the role of duration dependence in both countries is investigated. With regard to upward mobility, no convincing evidence for 'true' duration dependence is found, at least for Germany. As to the risk of falling back into unemployment, the results suggest that even low-wage workers can accumulate job-related human capital favouring employment integration over time." (author's abstract, IAB-Doku) ((en)) |
| Keywords: | Niedriglohngruppe, Niedriglohn, erwerbstätige Männer, arbeitslose Männer, berufliche Integration, Berufsverlauf - internationaler Vergleich, Arbeitslosigkeit, beruflicher Aufstieg, labour turnover, Arbeitslosigkeitsdauer, Beschäftigungsdauer, Österreich, Bundesrepublik Deutschland |
| JEL: | J64 J63 J31 |
| Date: | 2011–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201101&r=lab |
| By: | Hou, Xiaohui |
| Abstract: | This paper analyzes the patterns of and the challenges for youth employment in Pakistan and examines whether these challenges are youth-specific. Using the 2005/2006 Labor Force Survey, the analysis includes determinants of unemployment, determinants of working in the formal sector, rate of return on education, and determinants of working hours. The paper finds that many of the challenges to youth employment in Pakistan are not youth-specific. Policies should thus emphasize broader labor market reforms, even in the context of tackling youth employment issues. Still, some challenges are youth-specific, such as a higher youth unemployment rate and insufficient returns to better-educated youth. To address these challenges, more youth-specific interventions are needed. |
| Keywords: | Labor Markets,Youth and Governance,Adolescent Health,Housing&Human Habitats,Primary Education |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5544&r=lab |
| By: | CAROLEO, Floro Ernesto (Dipartimento di Studi Economici - Università degli Studi di Napoli Parthenope); PASTORE, Francesco (Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate - Seconda Università degli studi di Napoli) |
| Abstract: | The European Employment Strategy stresses the role of human capital accumulation, to increase via reforms of the education system and active labour market policy on a large scale, as the main instruments against unemployment. We argue that these instruments might be more effective than increasing labour market flexibility in reducing long-term youth unemployment. Nonetheless, while spending in training schemes is featured by an apparent institutional and financial poverty, the educational reform needs time to produce its effects. The multinomial logit analysis of labour market participation on YUSE data suggests that educational qualification and work experience are the most important determinants of employability. We detect also the existence of a “training trap”. |
| Keywords: | european employment strategy; youth unemployment; employment policy |
| JEL: | J24 R23 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0083&r=lab |
| By: | John Schmitt; Hye Jin Rho; Nicole Woo |
| Abstract: | Asian Americans and Pacific Islanders (AAPIs) are, with Latinos, the fastest growing ethnic group in the U.S. workforce. In 2009, Asian American and Pacific Islanders were one of every 20 U.S. workers, up from one in 40 only 20 years earlier. AAPIs, again with Latinos, are also the fastest growing ethnic group in organized labor, accounting for just under one-in-20 unionized workers in 2009. Even after controlling for workers’ characteristics including age, education level, industry, and state, unionized AAPI workers earn about 14.3 percent more than non-unionized AAPI workers with similar characteristics. This translates to about $2.50 per hour more for unionized AAPI workers. Unionized AAPI workers are also about 16 percentage points more likely to have health insurance and about 22 percentage points more likely to have a retirement plan than their non-union counterparts. The advantages of unionization are greatest for AAPI workers in the 15 lowest-paying occupations. Unionized AAPI workers in these low-wage occupations earn about 20.1 percent more than AAPI workers with identical characteristics in the same generally low-wage occupations. Unionized AAPI workers in low-wage occupations are also about 23.2 percentage points more likely to have employer- provided health insurance and 26.3 percentage points more likely to have a retirement plan through their job. |
| Keywords: | unions, wages, benefits, pension, health insurance, asian |
| JEL: | J J1 J3 J31 J32 J41 J5 J58 J6 J68 J88 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2011-01&r=lab |
| By: | Lubomira Anastassova |
| Abstract: | This paper is on measuring the gap in returns to education between foreign-born and native workers in France, Germany, and Austria and investigates the extent to which this gap can be explained by a mis-match between the actual and the years of schooling typical for a given occupation. The return to usual years of schooling across different occupations is found to be higher than that for actual years of education. In the case of correctly matched workers who have the ‘typical’ education in a certain occupation, there is no additional reward in earnings for natives compared to foreign workers. Immigrants, however, have significantly lower wage returns in being over-educated than natives but are penalized less for being under-educated. |
| Keywords: | Immigrants; schooling, occupations; earnings; rates of return |
| JEL: | F22 I21 J24 J31 J61 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp406&r=lab |
| By: | Grigoli, Francesco; Sbrana, Giacomo |
| Abstract: | This paper investigates the determinants of primary school enrollment, attendance and child labor in Bolivia from 1999 to 2007. The analysis also aims at identifying the substitution and complementary relationships between schooling and working. Although enrollment rates show a significant improvement, lack of attendance remains an issue. The empirical results reveal that the increase in enrollment is led by indigenous children and those living in urban areas. Moreover, contrary to common belief, being extremely poor and indigenous are the main determinants of school attendance. Although extremely poor children increased their school attendance, they were not able to reduce child labor. However, for indigenous children school attendance and child labor were substitutes, increasing schooling and reducing child labor. |
| Keywords: | Street Children,Primary Education,Education For All,Youth and Governance,Children and Youth |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5534&r=lab |
| By: | Robilliard, Anne-Sophie; Rakotomanana, Faly; Nordman, Christophe J. |
| Abstract: | Dans cet article, nous analysons les différences de genre en matière de performances sur le marché du travail de Madagascar à l’aide d’enquêtes ménages menées au niveau national en 2001 et en 2005. Grâce à ces deux points dans le temps, nous examinons la dynamique des déterminants de l’allocation sectorielle et de l’écart de gains entre sexes. Nos résultats montrent que l’écart salarial moyen entre sexes est relativement faible et stable entre ces deux périodes. L’écart salarial est le plus faible dans le secteur public et le plus élevé dans le secteur informel. Pour les travailleurs indépendants hors- agriculture, l’écart de gains est beaucoup plus élevé et a décliné entre 2001 et 2005, une période de crise économique. A l’aide de décompositions de ces écarts, nous montrons que les différences de localisation sectorielle selon les sexes expliquent une grande part de l’écart de gains pour les deux années. L’estimation de fonctions de gains augmentées de caractéristiques des micro-entreprises des travailleurs indépendants suggère par ailleurs que l’écart de genre dans ce secteur s’explique en grande partie par une répartition inégale entre sexes des attributs des micro-entreprises, en particulier du capital physique. Ce résultat met en évidence une source potentielle de discrimination souvent ignorée dans la littérature, à savoir l’accès au capital physique par les femmes. |
| Abstract: | n this study, we address the issue of gender differences in labour market performances for Madagascar using data from two national household surveys carried out in 2001 and 2005. The data collected in these surveys allow us to measure the gender pay gap at two points in time, and to analyze the determinants of occupational choices across sectors of employment as well as of wages and earnings. Our results show that the average gender wage gap is relatively small and stable over time. Across wage employment sectors, the gender gap appears to be the lowest in the public sector and the highest in the informal sector. In non-farm self-employment, however, the gender earnings gap is much higher and declined between 2001 and 2005. Using full decomposition techniques, we provide evidence that gender specific sectoral location explains a significant share of the gender wage gap in both years. Augmented earnings equations estimates carried out for the non-farm self-employment sector suggest that the gap in this sector is driven by the very unequal distribution of micro-firm attributes between men and women. This results points to a potential source of earnings differential often ignored in the gender gap literature which is access to physical capital by women. |
| Keywords: | écart de genre; participation au marché du travail; allocation sectorielle; équations de gains; écart salarial de genre; gender wage gap; Madagascar; labour force participation; sectoral allocation; earnings equations; |
| JEL: | J31 J24 O12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/4304&r=lab |
| By: | CAROLEO, Floro Ernesto (Dipartimento di Studi Economici - Università degli Studi di Napoli Parthenope); PASTORE, Francesco (Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate - Seconda Università degli studi di Napoli) |
| Abstract: | The aim of this paper is evaluating the impact of training on the employability of young long-term unemployed (18-24) within the EU. The analysis focuses on three countries representing different educational and training systems: Spain and Sweden are examples of a rigid and of a flexible sequential system, respectively; Germany is the best example of a dual educational and training system. Following a new wave in the literature on evaluation of employment policy, the paper attempts a target-oriented approach, as opposed to a programme-oriented approach. The effect of training on the labour market participation of young people is estimated by a multinomial LOGIT model relative to five labour market statuses: unemployment, employment, training, education and inactivity. The impact of the policy is analysed controlling for other important individual determinants, such as human and social capital endowment, the reservation wage and unemployment duration. The estimates provide little evidence in favour of a positive impact of ALMP in Spain and Germany. Only in Sweden the probability to be employed is significantly dependent on participation on training programmes. This result could be also due to the poor targeting of the policy to the weakest groups, especially in Southern European countries. It raises the issue of whether ALMP is a good instrument to fight youth unemployment and suggests a reform of the general education system could be more “effective”. |
| Keywords: | european employment strategy; youth unemployment; active labour market policy; europe; regional unemployment differentials |
| JEL: | H24 J24 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0068&r=lab |
| By: | Lehmann, Hartmut (University of Bologna); Muravyev, Alexander (IZA); Razzolini, Tiziano (University of Siena); Zaiceva, Anzelika (IZA and University of Bologna) |
| Abstract: | This paper is the first to analyze the costs of job loss in Russia, using unique new data from the Russian Longitudinal Monitoring Survey over the years 2003-2008, including a special supplement on displacement that was initiated by us. We employ fixed effects regression models and propensity score matching techniques in order to establish the causal effect of displacement for displaced individuals. The paper is innovative insofar as we investigate as relevant outcomes fringe and in-kind benefits and the propensity to have an informal employment relationship in addition to monthly earnings, hourly wages, employment and hours worked, which are traditionally analyzed. We find that, compared to the control group of non-displaced workers (i.e. stayers and quitters), displaced individuals face a significant income loss following displacement, which is mainly due to the reduction in employment and hours worked. This effect is robust to the definition of displacement. The losses seem to be more pronounced and are especially large for older workers with labor market experience and human capital acquired in Soviet times and for workers with low education. Workers displaced from state firms experience particularly large relative losses in the short run, while such losses for workers laid off from private firms are more persistent. Turning to the additional labor market outcomes, there is a loss in terms of the number of fringe and in-kind benefits for reemployed individuals but not in terms of their value. There is also some evidence of an increased probability of working in informal jobs if displaced. These results point towards the importance of both firm-specific human capital and of obsolete skills obtained under the centrally planned economy as well as to a wider occurrence of job insecurity among displaced workers. |
| Keywords: | costs of job loss, worker displacement, propensity score matching, Russia |
| JEL: | J64 J65 P50 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5415&r=lab |
| By: | Schwerdt, Guido (Ifo Institute for Economic Research); Messer, Dolores (University of Bern); Woessmann, Ludger (Ifo Institute for Economic Research); Wolter, Stefan (University of Bern) |
| Abstract: | Lifelong learning is often promoted in ageing societies, but little is known about its returns or governments' ability to advance it. This paper evaluates the effects of a large-scale randomized field experiment issuing vouchers for adult education in Switzerland. We find no significant average effects of voucher-induced adult education on earnings, employment, and subsequent education one year after treatment. But effects are heterogeneous: Low- education individuals are most likely to profit from adult education, but least likely to use the voucher. The findings cast doubt on the effectiveness of existing untargeted voucher programs in promoting labor market outcomes through adult education. |
| Keywords: | adult education, voucher, field experiment, LATE, Switzerland |
| JEL: | I22 J24 H43 C93 M53 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5431&r=lab |
| By: | CAROLEO, Floro Ernesto (Dipartimento di Studi Economici - Università degli Studi di Napoli Parthenope); PASTORE, Francesco (Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate - Seconda Università degli studi di Napoli) |
| Abstract: | This paper attempts a qualitative and quantitative evaluation of the ability of the Italian Active Labour Market Policy (ALMP) to target long term youth unemployed. The European Employment Strategy (EES) has given a new impulse to ALMP as the main tool to fight long term youth unemployment. It has also stressed the need for continuous monitoring and evaluation of the results obtained. However, while monitoring is now established, little evaluation has been carried out so far. After providing up to date evidence of the size and features of youth unemployment in Italy, we show that the measures implemented include reforms of the education, training and employment systems and direct incentives to employ young workers. This suggests all the evaluation studies based on individual programmes are insufficient and an overall evaluation of the impact of the programmes on the employability of the workers involved is needed. The results of the econometric analysis, based on individual level YUSE data, suggest qualification and work experience are the most important determinants of job finding, especially in flows to employment in the formal sector. However, training and participation on ALMP does not significantly improve the employability of young workers. A number of reasons could explain this apparently surprising result. Especially in Southern regions, micropolicies could be totally ineffective because of the generally negative labour demand conditions. Moreover, expenditure on ALMP is very low (less than 1% of GDP in 1999), compared to the very high unemployment level. Thirdly, a substantial institutional and financial poverty still characterises labour supply policy. Finally, structural reforms, such as those relative to the educational system, require time to be completed and to produce their expected outcomes. In the meanwhile, workers involved in training programmes face the prospect of falling into a sort of “training trap”. |
| Keywords: | european employment strategy; youth unemployment; active labour market policy; Italy; regional unemployment differentials |
| JEL: | H24 J24 J63 R23 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0062&r=lab |
| By: | Giulietti, Corrado (IZA) |
| Abstract: | This paper studies the impact of the minimum wage on immigration. A framework is presented in which inflows of immigrants are a function of the expected wage growth induced by the minimum wage. The analysis focuses on the US minimum wage increase of 1996 and 1997, using data from the Current Population Survey and the census. The estimation strategy consists of using the fraction of affected workers as the instrumental variable for the growth of expected wages. The findings show that States in which the growth of expected wages was relatively large (around 20%) exhibit inflow rate increases that are four to five times larger than States in which average wages grew 10% less. Placebo tests confirm that the policy did not affect the immigration of high wage earners. |
| Keywords: | employment effects, expected wages, immigration, minimum wage, wage effects |
| JEL: | J08 J23 J38 J61 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5410&r=lab |
| By: | Michela Ponzo; Vincenzo Scoppa (Dipartimento di Economia e Statistica, Università della Calabria) |
| Abstract: | Using data for 9, 13 and 15-year-old students from three different datasets (PIRLS-2006, TIMSS-2007 and PISA-2009), we investigate whether the age at school entry affects children school performance at the fourth, eighth and tenth grade levels. Since student’s age in a grade may be endogenous, we use an Instrumental Variable estimation strategy exploiting the exogenous variations in the month of birth coupled with the entry school cut-off date. We find that younger children score substantially lower than older peers at the fourth, the eighth and the tenth grade. The advantage of older students does not dissipate as they grow older. We do not find any significant effect of the relative age of a child with respect to the classmates’ age. Finally, we show that secondary school students are more likely to be tracked in more academic schools rather than in vocational schools if they are born in the early months of the year. |
| Keywords: | school entry age, educational production function, student achievement, choice of track, instrumental variables, Italy, PIRLS, TIMSS, PISA |
| JEL: | I21 I28 J13 J24 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201101&r=lab |
| By: | Julen Esteban-Pretel (National Graduate Institute for Policy Studies); Junichi Fujimoto (Faculty of Economics, University of Tokyo) |
| Abstract: | Unemployment, job nding, and job separation rates exhibit patterns of decline as worker age increases in the U.S. We build and numerically simulate a search and matching model of the labor market that incorporates a life-cycle structure to account for these empirical facts. The model features random match quality, which, with positive probability, is not revealed until production takes place. We show that the model, calibrated to U.S. data, is able to reproduce the empirical patterns of unem- ployment and job transition rates over the entire life-cycle. Both decreasing distance to retirement as a worker ages, and ex ante unknown match quality, are essential in delivering these results. We then explore, both analytically and numerically, the eciency implications of the model. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2010cf783&r=lab |
| By: | MANACORDA, Marco (CEP – London School of Economics); PETRONGOLO, Barbara (CEP – London School of Economics) |
| Abstract: | This paper describes the functioning of a two-region economy characterized by asymmetric wage-setting. Labor market tightness in one region (the leading-region) affects wages in the whole economy. In equilibrium, net labor demand shifts towards the leading region raise unemployment in the rest of the economy and leave regional wages unchanged, causing an increase in aggregate unemployment. This model has some success in explaining the evolution of regional unemployment rates in Italy during the period 1977-1998. Based on SHIW micro data on earnings and ISTAT data on unemployment rates we find strong evidence that wages in Italy only respond to labor market tightness in the North. We estimate that around one third of the increase in aggregate unemployment in Italy can be explained by regional mismatch, mainly due to an excess labor supply growth in the South. |
| Keywords: | regional imbalances; wage curve; unemployment. |
| JEL: | E24 J23 J31 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0090&r=lab |
| By: | Canova, Luciano; Vaglio, Alessandro |
| Abstract: | This paper investigates the role performed by mothers in affecting their childrens' performance at school. The article develops firstly a theoretical model in which household (parent-child pair) is treated as an individual, whose utility depends both on the performance at school of the student and on consumption. The model focuses on the different possibilities through which help of mothers may affect pupil's performance both in terms of time devoted to supervision and spillover effects. Empirical evidence then, using PISA 2006 and focusing on Italian case, shows that education of mothers is an issue when interacted with her occupational status. Highly educated mothers have a positive impact on students' score only when they are highly qualified in the job market. -- |
| Keywords: | education,PISA,quantile regressions,parental help |
| JEL: | J12 J21 J24 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201029&r=lab |
| By: | AUTIERO, Giuseppina (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy); MAZZOTTA, Fernanda (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy) |
| Abstract: | It is well known that the lack of information often leads to the difficulty of decentralised decision units solving coordination problems through market functioning. In labour market the lack of information is often characterised by asymmetric information on heterogeneous labour skills and the related productive capabilities [Spence, 1973] and coordination mainly concerns the matching of vacant jobs with unemployed individuals, which results from a costly and time-consuming process. Coordination involves also the matching between job skills and vacancies requiring specific skills. This process is characterised by the existence of uncertainty as unemployed individuals know the general features of wage distribution in an area but ignore which firms are offering each wage. Accordingly, coordination on the side of unemployed workers involves a searching activity based on the gathering of information on available vacancies, the related wage and skill, whereas on the side of firms the gathering of information on the characteristics of individuals willing to fill the vacancies like their skills. As to unemployed workers, the distinction among search methods plays a significant role in the final result of their job search. |
| Keywords: | labour supply; unemployment; job search |
| JEL: | J22 J64 |
| Date: | 2011–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0058&r=lab |
| By: | Derek Neal |
| Abstract: | This chapter analyzes the design of incentive schemes in education while reviewing empirical studies that evaluate performance pay programs for educators. Several themes emerge. First, it is difficult to use one assessment system to create both educator performance metrics and measures of student achievement. To mitigate incentives for coaching, incentive systems should employ assessments that vary in both format and item content. Separate no-stakes assessments provide more reliable information about student achievement because they create no incentives for educators to take hidden actions that contaminate student test scores. Second, relative performance schemes are rare in education even though they are more difficult to manipulate than systems built around psychometric or subjective performance standards. Third, assessment-based incentive schemes are mechanisms that complement rather than substitute for systems that promote parental choice, e.g. vouchers and charter schools. |
| JEL: | I20 I28 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16710&r=lab |
| By: | Geraint Johnes; Aradhna Aggarwal; Ricardo Freguglia; Gisele Spricigo |
| Abstract: | The impact of education on labour market outcomes is analysed using data from various rounds of the National Sample Survey of India. Occupational destination is examined using both multinomial logit analyses and structural dynamic discrete choice modelling. The latter approach involves the use of a novel approach to constructing a pseudo-panel from repeated cross-section data, and is particularly useful as a means of evaluating policy impacts over time. We find that policy to expand educational provision leads initially to an increased takeup of education, and in the longer term leads to an increased propensity for workers to enter non-manual employment. |
| Keywords: | occupation, education, development |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:007194&r=lab |
| By: | Fernández-Kranz, Daniel (IE Business School, Madrid); Lacuesta, Aitor (Bank of Spain); Rodriguez-Planas, Nuria (Universitat Autònoma de Barcelona) |
| Abstract: | Using rich panel data recently available from Spanish Social Security records, we find that a negative motherhood earnings differential of 2.3 log points remains even after controlling for both individual- and firm-level unobserved heterogeneity. The analysis of the mothers and childless women's earnings trajectories over time reveals that "mothers to be" experience important earnings increases (of up to 6 log points) several years prior to giving birth to their first child. However, this earnings' advantage gets seriously hit right after birth, and it is not until nine years later that mothers' earnings return to their pre-birth (relative) levels. The study finds that heterogeneity matters as most of the motherhood penalty and earnings' dip is driven by mothers working in the primary labor market (with permanent contracts). For these women, much of the earnings losses occur because mothers change employers to work part-time, or (if they stay with their former employer) they take leave of absence. An instrumental variable approach is used to address concerns of selection into type of contract. We exploit variation in the amount, timing and profiling of subsidies offered to firms when hiring permanent workers, a policy that started to be implemented in Spain in 1997. |
| Keywords: | earnings trajectories, individual- and firm-level fixed-effects estimator, permanent and fixed-term contracts, underlying channels |
| JEL: | J13 J16 J21 J22 J31 J62 C23 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5403&r=lab |
| By: | Giuliano, Laura (University of Miami); Ransom, Michael R. (Brigham Young University) |
| Abstract: | Using nine years of personnel records from a regional grocery store chain in the United States, this study examines the effect of manager ethnicity on the ethnic composition of employment at the firm's 73 stores. We estimate separate models with store fixed effects for several departments and job titles at each store. We first compare the rates at which Hispanic employees are hired under Hispanic and non-Hispanic, white managers, and then examine the effects of manager-employee ethnic differences on separations and on transfers between stores. We find significant effects of manager ethnicity on hiring patterns in the four job positions that are in small departments, but not in the two positions in larger departments. Manager-employee ethnic dissimilarity has no significant effects on transfers, and affects rates of employee separations in only one case. |
| Keywords: | ethnicity, segregation, managerial discretion |
| JEL: | J71 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5437&r=lab |
| By: | Marina Murat; Davide Ferrari; Patrizio Frederic; Giulia Pirani |
| Abstract: | Using data from PISA 2006, we examine the performance of immigrant students in different international educational environments. Our results show smaller immigrant gaps – differences in scores with respect to natives - where educational systems are more flexible and students’ mobility between courses and school programs is higher. Unlike previous studies, our analysis reveals no direct relation between these gaps and education models, be they comprehensive or tracking, adopted by countries. |
| Keywords: | international migration; educational systems; PISA |
| JEL: | F22 I21 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:mod:recent:054&r=lab |
| By: | Cahuc, Pierre (Ecole Polytechnique, Paris); Carcillo, Stéphane (University of Paris 1 Panthéon-Sorbonne) |
| Abstract: | Short-time work compensation aims at reducing lay-offs by allowing employers to temporarily reduce hours worked while compensating workers for the induced loss of income. These programs are now widespread in the OECD countries, notably following the 2008-2009 crisis. This paper discusses the efficiency of this type of policy and investigates its impact on unemployment and employment. There is some evidence that short-time compensation programs stabilize permanent employment and reduce unemployment during downturns. All in all, it seems that short-time work programs used in the recent downturn had significant beneficial effects. This suggests that countries which do not have short-time compensation programs could benefit from their introduction. But short-time compensation programs can also induce inefficient reductions in working hours and reduce the prospects of outsiders if used too intensively. Thus, the design of short-time compensation programs should include an experience-rating component. |
| Keywords: | short-time work, unemployment, employment |
| JEL: | E24 J22 J65 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5430&r=lab |
| By: | AUTIERO, Giuseppina (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy); MAZZOTTA, Fernanda (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy) |
| Abstract: | In labour market part of the coordination process involves the matching between job skills and vacancies requiring specific skills. On the side of unemployed workers, the process requires a searching activity based on the gathering of information on available vacancies, the related wages and skills. The distinction among search methods plays a significant role as to the success of individual job search. The factors characterising the methods and the individuals searching for a job influence their choice. The specific aim of this empirical analysis is to understand how individual look for a job and, thus, how they decide to choose the search methods drawn from the set of search actions as specified in the 1993 Bank of Italy Survey. |
| Keywords: | labour supply; unemployment; models and job search |
| JEL: | J22 J64 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0055&r=lab |
| By: | Monaco, Kristen (California State University, Long Beach); Habermalz, Steffen (Northwestern University) |
| Abstract: | Using CPS data for the period 1979-2009, the wage dispersion of truck drivers (and subsets of the truck driving sample) is compared to the trends in wage dispersion of males economy-wide. We find that truckers' wages experienced a decrease in inequality post-deregulation, as expected given the literature on regulation's impact on the labor market. We also find that the wage dispersion for truckers is markedly different from males economy-wide, providing evidence that the wage distribution of truck drivers has been dominated by the changing structure of the occupation post-deregulation and largely immune to the factors that increased inequality for the aggregate labor market. |
| Keywords: | wage differentials, wage inequality, trucking |
| JEL: | J31 L92 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5444&r=lab |
| By: | Bloemen, Hans (VU University Amsterdam); Hochguertel, Stefan (VU University Amsterdam); Lammers, Marloes (VU University Amsterdam) |
| Abstract: | In this paper, we use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness/disability benefits. The reform, becoming effective on January 1st 2004, required the elderly to formally report their job search efforts to the employment office in order to avoid a (temporary) cut in benefits. Before the new law was passed, unemployed were allowed to stop all search activity at the moment they turned 57.5. Estimating various duration models using difference-in-difference and regression discontinuity approaches, we find that for several groups of individuals that were affected by the policy change, the stricter search requirements did significantly increase their entry rate into employment. However, we also find evidence of a higher outflow to sickness/disability insurance schemes, a presumably unwanted side-effect of the policy change. |
| Keywords: | duration analysis, policy evaluation, search effort, substitution |
| JEL: | C31 J26 J64 J68 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5442&r=lab |
| By: | PASTORE, Francesco (Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate - Seconda Università degli studi di Napoli); MARCINKOWSKA, Izabela (CASE-Centrum Analiz Społeczno-Ekonomicznych) |
| Abstract: | This paper provides evidence of the gender wage gap among young people (18-24) in Italy based on the YUSE data set and involves the Oaxaca and Ransom (1994) decomposition of the unconditional gender wage gap into discrimination and productivity components. About 70% of the overall gap is unexplained, a component which is higher than among adults. Almost 11% of the gap is explained by segregation of women in low wage industries. In the Northern Veneto, the explained component of the gap is almost double that in the Southern Campania (36.4%). This is clear evidence of the remarkable discrimination that young women experience especially in Southern regions, similar to the adult women. |
| Keywords: | gender wage gap; returns to education; young people; Italy |
| JEL: | J13 J16 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0082&r=lab |
| By: | Mahuteau, Stéphane (Macquarie University, Sydney); Tani, Massimiliano (Macquarie University, Sydney) |
| Abstract: | This paper studies the educational investment decisions of returning migrants while abroad in the context of their decisions about the choice of activity upon returning and the duration of migration. The theoretical model builds on Dustmann (1999), Dustmann and Kirchkamp (1992) and Mesnard (2004). Using data from the MIREM database we explore whether the type of skills acquired by migrants while abroad is related to the activity chosen upon return and the duration of migration. The results suggest that the type of education plays a significant role in the migration decisions of those returning as wage earners or self-employed. In particular, there is a clear positive relationship between being self-employed and having previously invested in vocational education in the host country. There is also a strong positive relationship between investing in university education abroad and becoming a wage earner. As international migration facilitates skill transfers between developed and developing countries, the economic development of the latter will increasingly depend on migrants' ability to access educational and vocational training in the developed world aside from university education. Returning migrants with vocational and professional training tend to be self-employed after returning home, and by so doing they contribute to reducing poverty in the host country. |
| Keywords: | return migration, human capital, education, duration of migration |
| JEL: | F2 J6 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5441&r=lab |
| By: | Marouani, Mohamed Ali |
| Abstract: | La combinaison de facteurs démographiques et de progrès dans l’éducation a entraîné une hausse significative du chômage des diplômés dans la région MENA. L’article fournit une analyse de type coût-efficacité de politiques alternatives d’mploi à l’aide d’un modèle d’équilibre général dynamique Le modèle permet une détermination endogène du niveau de chômage à l’aide d’un modèle multisectoriel de salaires d’efficience. Le principal résultat est qu’une subvention salariale ciblée su les secteurs intensifs en main-d’œuvre qualifiée est plus efficace que des réductions d’impôts ou des subventions à l’investissement. Cependant ces subventions salariales ne sont pas suffisantes pou réduire significativement le niveau du chômage. D’autres options doivent être considérées. |
| Abstract: | The combination of demographic factors and an increase in education has caused a significant rise of university graduates’ unemployment in the MENA region. The article provides a prospective cost- effectiveness analysis of the impact of alternative labor market policies using a dynamic general equilibrium model. The model allows for an endogenous determination of unemployment through a multisectoral efficiency wage setting mechanism. The main finding is that a wage subsidy targeted at highly skilled intensive sectors is more effective than tax reductions or investment subsidies. However, wage subsidies are not enough to reduce significantly unemployment. Other policy options need to be considered. |
| Keywords: | Tunisie; Tunisia; Afrique du Nord et Moyen Orient; modèle d’équilibre general dynamiques; chômage; main-d’oeuvre qualifiée; politiques de l’emploi; Employment policies; skilled workers; unemployment; dynamic general equilibrium models; Middle East and North Africa; |
| JEL: | J68 J24 C68 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/4310&r=lab |
| By: | Steve Bradley; John Mangan; Colin Green |
| Abstract: | A standard finding in the literature on gender wage gaps is that the public sector exhibits much lower gaps than in the private sector. This finding is generally attributed to the existence of less gender discrimination in the public sector. In this paper we show that this conclusion is flawed because the standard finding for the public sector is biased by the dominating influence of large feminised occupational groups, such as those in nursing and teaching, both of which have relatively flat job hierarchies and hence low overall wage variance. However, when we examine other occupations within the public sector, there is evidence of sizeable wage gaps, much of which cannot be explained by observable or unobservable workplace or worker characteristics. This finding implies that gender discrimination is substantial in some occupations in the public sector. |
| Keywords: | Gender wage gap, public sector, discrimination |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:007191&r=lab |
| By: | Alberto Bisin (New York University); Eleonora Patacchini (La Sapienza University of Rome, Einaudi Institute for Economics and Finance (EIEF) and CEPR); Thierry Verdier (Paris School of Economics (PSE) and CEPR); Yves Zenou (Stockholm University, Research Institute of Industrial Economics (IFN), CEPR, IZA and CREAM) |
| Abstract: | We study the relationship between ethnic identity and labor-market outcomes of non-EU immigrants in Europe. Using the European Social Survey, we find that there is a penalty to be paid for immigrants with a strong identity. Being a first generation immigrant leads to a penalty of about 17 percent while second-generation immigrants have a probability of being employed that is not statistically different from that of natives. However, when they have a strong identity, second-generation immigrants have a lower chance of finding a job than natives. Our analysis also reveals that the relationship between ethnic identity and employment prospects may depend on the type of integration and labor-market policies implemented in the country where the immigrant lives. More flexible labor markets help immigrants to access the labor market but do not protect those who have a strong ethnic identity. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:201103&r=lab |
| By: | Wang, Liang Choon |
| Abstract: | Large classroom variance of student age is prevalent in developing countries, where achievement tends to be low. This paper investigates whether increased classroom age variance adversely affects mathematics and science achievement. Using exogenous variation in the variance of student age in ability-mixing schools, the author finds robust negative effects of classroom age variance on fourth graders'achievement in developing countries. A simulation demonstrates that re-grouping students by age in the sample can improve math and science test scores by roughly 0.1 standard deviations. According to past estimates for the United States, this effect size is similar to that of raising expenditures per student by 26 percent. |
| Keywords: | Tertiary Education,Educational Sciences,Youth and Governance,Secondary Education,Scientific Research&Science Parks |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5527&r=lab |
| By: | Bisin, Alberto (New York University); Patacchini, Eleonora Patacchini (La Sapienza University of Rome, Einaudi Institute for Economics and Finance (EIEF) and CEPR.); Verdier, Thierry Verdier (Paris School of Economics (PSE) and CEPR); Zenou, Yves Zenou5 (Dept. of Economics, Stockholm University) |
| Abstract: | We study the relationship between ethnic identity and labor-market outcomes of non-EU immigrants in Europe. Using the European Social Survey, we find that there is a penalty to be paid for immigrants with a strong identity. Being a first generation immigrant leads to a penalty of about 17 percent while second-generation immigrants have a probability of being employed that is not statistically different from that of natives. However, when they have a strong identity, second-generation immigrants have a lower chance of finding a job than natives. Our analysis also reveals that the relationship between ethnic identity and employment prospects may depend on the type of integration and labor-market policies implemented in the country where the immigrant lives. More flexible labor markets help immigrants to access the labor market but do not protect those who have a strong ethnic identity. |
| Keywords: | First and second-generation immigrants; assimilation; integration policies |
| JEL: | F22 J15 J61 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2011_0002&r=lab |
| By: | Oguzoglu, Umut (University of Manitoba) |
| Abstract: | I use a dynamic mixed multinomial logit model with unobserved heterogeneity to study the impact of work limiting disabilities on disaggregated labour choices. The first seven waves of the Household Income and Labour Dynamics in Australia survey are used to investigate this relationship. Findings point out to strong state dependence in employment choices. Further, the impact of disability on employment outcomes is highly significant. Model simulations suggest that high cross and own state dependence can amplify a one-off disability shock to alter the probability of full time employment and nonparticipation permanently, especially for low skilled individuals. |
| Keywords: | disability, employment, dynamic mixed multinomial logit, panel data, HILDA, simulated maximum likelihood |
| JEL: | J14 J21 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5408&r=lab |
| By: | Tansel, Aysit (Middle East Technical University); Bircan, Fatma (Middle East Technical University) |
| Abstract: | This paper investigates the male wage inequality and its evolution over the 1994-2002 period in Turkey by estimating Mincerian wage equations using OLS and quantile regression techniques. Male wage inequality is high in Turkey. While it declined at the lower end of the wage distribution it increased at the top end of wage distribution. Education contributed to higher wage inequality through both within and between dimensions. The within-groups inequality increased and between-groups inequality decreased over the study period. The latter factor may have dominated the former contributing to the observed decline in the male wage inequality over the 1994-2002. Further results are provided for the wage effects of experience, public sector employment, geographic location, firm size, industry of employment and their contribution to wage inequality. Recent increases in FDI inflows, openness to trade and global technological developments are discussed as contributing factors to the recent rising within-groups wage inequality. |
| Keywords: | wage inequality, returns to education, quantile regression, Turkey |
| JEL: | J31 J23 J24 I21 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5417&r=lab |
| By: | ALTAVILLA, Carlo (Dipartimento di Studi Economici - Università degli Studi di Napoli Parthenope); CAROLEO, Floro Ernesto (Dipartimento di Studi Economici - Università degli Studi di Napoli Parthenope) |
| Abstract: | This paper aims at analyzing whether Active Labour Market rograms (ALMP) could have different effects on unemployment nd employment dynamics according to the particular region here the program is implemented. To this end, the research nalyses alternative theoretical and econometric models hought tocapture the possible effects that active labour market policies might have on labour forces dynamics. The econometric methodologies implemented are the Generalized Method of Moment (GMM) and the Panel Vector Autoregression (P-VAR). The evidence emerging from the GMM models suggests that the effects of ALMP on unemployment are not similar across the Italian regions. It follows that some active programs are likely to exert a greater effect in the South than in the North. The results of the P-VAR estimated models are synthesized in the impulse response analysis and the forecast error variance decomposition. The impulse response analysis suggests that an increase in ALMP lead to: (i) a decrease in the unemployment rate, and (ii)significant increase in labour force participation. More interestingly, results obtained from the error-variance decomposition analysis show that unemployment movements are not driven by shocks in the ALMP and that, especially in the northern regions, atypical contracts shocks account for a substantial portion of unemployment dynamics. |
| Keywords: | ALMP; Beveridge Curve; GMM; P-VAR |
| JEL: | C33 J64 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0084&r=lab |
| By: | Kangni Kpodar (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | This paper analyzes the determinants of labor market performance in Algeria. When the model is estimated with panel data on a sample of MENA and transition countries for 1995–2005, the results suggest that lower growth in labor productivity in Algeria is associated with higher unemployment than the sample average, though recent positive terms of trade shocks have helped Algeria reduce the differential. Labor market rigidities and labor taxation do not seem to explain why unemployment is higher in Algeria than in other countries. The results are robust to various panel econometric methods and instrumental variable estimates. |
| Keywords: | Unemployment;Labor market institutions;Macroeconomic shocks |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00556938&r=lab |
| By: | Muravyev, Alexander (IZA); Talavera, Oleksandr (University of East Anglia) |
| Abstract: | This paper takes advantage of a recent policy experiment in Ukraine's secondary education system to study the effect of stricter requirements for proficiency in the state language on linguistic minority students’ demand for, as well as opportunities to pursue, further studies at the university level. The reform that we consider obligated all minority students, including those studying in public schools with a full cycle of education in minority languages, to take a standardized school exit test (which is also a university entry test) in Ukrainian, the state language, thus denying them previously granted access to translated tests. Using school-level data and employing the difference-in-difference estimator we find evidence that the reform resulted in a decline in the number of subjects taken by minority students at the school exit test. There was also a notable shift in the take-up of particular subjects, with fewer exams taken by minority students in more linguistically-demanding subjects such as History, Biology, and Geography, and more exams taken in foreign languages and Math. Overall, our results suggest some distortions in the accumulation of human capital by linguistic minority students induced by the language policy. |
| Keywords: | language policy, economics of minorities, education, Ukraine |
| JEL: | I28 J15 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5411&r=lab |
| By: | Hanushek, Eric A. (Stanford University); Woessmann, Ludger (Ifo Institute for Economic Research) |
| Abstract: | Existing growth research provides little explanation for the very large differences in long-run growth performance across OECD countries. We show that cognitive skills can account for growth differences within the OECD, whereas a range of economic institutions and quantitative measures of tertiary education cannot. Under the growth model estimates and plausible projection parameters, school improvements falling within currently observed performance levels yield very large gains. The present value of OECD aggregate gains through 2090 could be as much as $275 trillion, or 13.8 percent of the discounted value of future GDP. Extensive sensitivity analyses indicate that, while differences between model frameworks and alternative parameter choices make a difference, the economic impact of improved educational outcomes remains enormous. Interestingly, the quantitative difference between an endogenous and neoclassical model framework – with improved skills affecting the long-run growth rate versus just the steady-state income level – matters less than academic discussions suggest. We close by discussing evidence on which education policy reforms may be able to bring about the simulated improvements in educational outcomes. |
| Keywords: | education, growth, OECD, cognitive skills, projection |
| JEL: | I2 O4 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5401&r=lab |
| By: | Wolthoff, Ronald (University of Toronto) |
| Abstract: | A large part of the literature on frictional matching in the labor market assumes bilateral meetings between workers and firms. This ignores the frictions that arise when workers and firms meet in a multilateral way and cannot coordinate their application and hiring decisions. I analyze the magnitude of these frictions. For this purpose, I present an equilibrium search model of the labor market with an endogenous number of contacts between workers and firms. Workers contact firms by applying to vacancies, whereas firms contact applicants by interviewing them. Sending more applications and interviewing more applicants are both costly activities but increase the probability to match. In equilibrium, contract dispersion arises endogenously and workers spread their applications over the different types of contracts. Estimation of the model on the Employment Opportunities Pilot Projects data set provides values for the fundamental parameters of the model, including the cost of an application, the cost of an interview, and the value of non-market time. These estimates are used to determine the loss in social surplus compared to a Walrasian world. Frictions on the worker and the firm side each cause approximately half of the 4.7% loss. There is a potential role for activating labor market policies, because I show that for the estimated parameter values welfare is improved if unemployed workers increase their search intensity. |
| Keywords: | labor, search, recruitment, frictions, efficiency |
| JEL: | J64 J31 E24 D83 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5416&r=lab |
| By: | Adrian Chadi |
| Abstract: | In the modern welfare state, people who cannot make a living usually receive financial assistance from public funds. Accordingly, the so-called social work norm against living off other people is violated, which may be the reason why the unemployed are so unhappy. If so, however, labour market concepts based on the notion of promoting low-paid jobs that are subsidised if necessary with additional payments would appear far less favourable. It could be that people are employed, but still unhappy. Using German panel data, this paper examines the relevance of the social work norm and finds a significant disutility effect of living off public funds. Although this is true for employed people as well, the results show that the individual is generally better off having a job that requires additional assistance, than having no job at all. On the other hand, such policies as the recent German labour market reforms can trigger undesired side-effects, if policy-makers ignore the issue of the social work norm. |
| Keywords: | Unemployment, Social benefits, Low-wages, Labour market policies, Social norms, Well-being |
| JEL: | I31 J38 J60 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp353&r=lab |
| By: | Roy Thurik; Jolanda Hessels; José Maria Millan; Rafael Aguado |
| Abstract: | Job satisfaction of self-employed and paid-employed workers is analyzed using the European Community Household Panel for the EU-15 covering the years 1994-2001. We distinguish between two types of job satisfaction, i.e. job satisfaction in terms of type of work and job satisfaction in terms of job security. Findings from our generalized ordered logit regressions indicate that self-employed individuals as compared to paid employees are more likely to be satisfied with their present jobs in terms of type of work and less likely to be satisfied in terms of job security. The findings also provide many insights into the determinants of the two types of job satisfaction for both the self-employed and paid employees. |
| Date: | 2011–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201106&r=lab |
| By: | Luc Behaghel (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Didier Blanchet (INSEE-D3E - Département des études économiques d'ensemble - INSEE); Thierry Debrand (IRDES - Institut de recherche et documentation en économie de la santé - IRDES); Muriel Roger (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, INSEE-D3E - Département des études économiques d'ensemble - INSEE) |
| Abstract: | The French pattern of early transitions out of employment is basically explained by the low age at “normal” retirement and by the importance of transitions through unemployment insurance and early-retirement schemes before access to normal retirement. These routes have exempted French workers from massively relying on disability motives for early exits, contrarily to the situation that prevails in some other countries where normal ages are high, unemployment benefits low and early-retirement schemes almost non-existent. Yet the role of disability remains interesting to examine in the French case, at least for prospective reasons in a context of decreasing generosity of other programs. The study of the past reforms of the pension system underlines that disability routes have often acted as a substitute to other retirement routes. Changes in the claiming of invalidity benefits seem to match changes in pension schemes or controls more than changes in such health indicators as the mortality rates. However, our results suggest that increases in average health levels over the past two decades have come along with increased disparities. In that context, less generous pensions may induce an increase in the claiming of invalidity benefits partly because of substitution effects, but also because the share of people with poor health increases. |
| Keywords: | Pensions ; Social Security ; Disability ; Early Retirement ; Unemployment ; Senior |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00556722&r=lab |
| By: | Bocquier, Philippe; Nordman, Christophe J.; Vescovo, Aude |
| Abstract: | This article develops indicators of vulnerability in employment in seven economic capitals of West Africa and studies their links with individual incomes. Quantitative, distributional and qualitative analyses show that vulnerability compensating mechanism is mainly seen in the informal sector, in the upper tail of the earnings distribution and particularly in the circumstance of visible underemployment. Employment vulnerability is not compensated for the poorest workers in the private sector. Long “job queues” and weak institutional protection of workers may have reduced bargaining power in the formal sector. |
| Keywords: | Afrique de l'Ouest; West Africa; secteur informel; revenus; différentiels compensatoires; conditions de travail; vulnérabilité; vulnerability; working conditions; compensating differentials; earnings; informal sector; |
| JEL: | O12 J31 J24 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/4294&r=lab |
| By: | Brunello, Giorgio (University of Padova); Crivellaro, Elena (University of Padova); Rocco, Lorenzo (University of Padova) |
| Abstract: | Using data for 22 economies in Eastern and Western Europe, we find evidence that having studied under communism is relatively penalized in the economies of the late 2000s. This evidence, however, is limited to males and to primary and secondary education, and holds for eight CEE economies but not for the East Germans who have studied in the former German Democratic Republic. We also find that post-secondary education acquired under communism yields higher, not lower, payoffs than similar education in Western Europe. |
| Keywords: | returns to education, Eastern Europe |
| JEL: | J24 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5409&r=lab |
| By: | O'HIGGINS, Shane Niall (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy) |
| Abstract: | This paper discusses the nature and characteristics of the youth labour market in Europe and Central Asia. The central concern is with the policy response to the substantial youth unemployment problem emerging with the transition to the market in Central & Eastern Europe and Central Asia( CEECA). After looking at general trends in youth labour markets, in particular the impact of the recessions and the rapid industrial restructuring which accompanied transition, the paper outlines recent developments in youth employment policy at national and international levels and reviews findings on the contributions of policy to both improving youth employment prospects (education and ALMP) and, potentially, reducing them (minimum wages and employment protection legislation). |
| Keywords: | transition; youth employment; ALMP |
| JEL: | J13 J23 P27 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0085&r=lab |
| By: | Pierre Lefebvre; Philip Merrigan; Francis Roy-Desrosiers |
| Abstract: | More than ten years ago the province of Québec implemented a universal early childhood education and care policy. This paper examines if the two objectives pursued, to increase mothers’ participation in the labour market (balance the needs of workplace and home) and to enhance child development and equality of opportunity for children, were reasonable meet. A non-experimental evaluation framework based on multiple pre- and post-treatment periods is used to estimate the policy effects. First, year after year the number of children and their weekly of hours in childcare have increased. More preschool children are in non-parental childcare at a younger age and the intensity of childcare has increased over the years. Second, the policy has significantly increased the labour force participation and annual weeks worked for mothers with at least a child aged 1 to 4 years compared to mothers in the same situation in the Rest of Canada. Third, the evidence presented show that the policy has not enhanced school readiness or child early literacy skills in general, with negative significant effects on the PPVT scores of children aged 5 and possibly negative for children of age 4. Simulations show the bounds of the public benefits in terms of additional net taxes (income taxes less refundable credits and transfers based on household’s “net” income). Unless one suppose that mothers in the upper part of the earnings distribution are those who returned early to the labour market after giving birth or a maternity leave, and who have worked more weeks, the effect on governments revenues are modest. The main beneficiary of the larger tax base of a higher labour supply of mothers with young children is the federal government which do not support the significant public funding of the program. The policy has some drawbacks in terms of social efficiency and equity. The structure of the program with its very low $7/day fee before taxes creates strong incentives for families to use long hours of daycare for children at a very young age, which may not be the best mechanism for children development. The high transfers in-kind (1.9 billion in 2009) to families using subsidized childcare raise the question of their horizontal and vertical equity. The paper concludes on three modifications to the program that could correct some of its weaknesses. |
| Keywords: | Childcare policy, mother’s labour supply, preschool children and school readiness, treatment effects, natural experiment |
| JEL: | H42 J21 J22 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1101&r=lab |
| By: | ALTAVILLA, Carlo (Dipartimento di Studi economici - Università degli Studi di Napoli Parthenope); GAROFALO, Antonio (Dipartimento di Studi economici - Università degli Studi di Napoli Parthenope); VINCI, Concetto Paolo (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy) |
| Abstract: | How many hours per week should workers in the United States and Germany spend at their paying jobs? The present paper addresses this question by constructing policymakers’ reaction functions capable of modelling the optimal length of working time as a function of the relevant labour market variables. The empirical analysis is based on the optimal control algorithm. Given a policymaker’s loss function and a structural model of the labour market we define alternative specifications of reaction functions where the response coefficients indicate how policymakers should react to any news in the labour market in order to stabilize employment and wages. We also perform a comparative analysis on the ability of the rules to correspond to historical working-time records. The results suggest that simple rules perform quite well and that the advantages obtained from adopting an optimal controlbased rule are not so great. Moreover, the analysis emphasizes the success of the wage-based rule and of the employment-based rule in the US and Germany, respectively. Finally, we propose a policy rule to capture the dynamics of the weekly working hours. According to our rule the length of the workweek is an inverse function of the deviation between the actual and potential employment level. |
| Keywords: | policy rule; working-time; dynamic optimization |
| JEL: | C32 J23 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0091&r=lab |
| By: | Chakraborty, Tanika (DIW Berlin); De, Prabal K. (City College of New York) |
| Abstract: | We construct a new, direct measure of female autonomy in household decision-making by creating an index from the principal components of a variety of household variables on which mother of a child takes decision. We then examine its impacts on her child’s secondary education in Mexico and find that the children of Mexican mothers with greater autonomy in domestic decision making have higher enrolment in and lower probability of dropping out of secondary school. We use the relative proximity of spousal parents as instruments for relative autonomy to ameliorate the potential endogeneity between autonomy and welfare outcomes. We argue that omitted variables that may drive education and autonomy are likely to be uncorrelated with the ones driving location choice of families given the migration patterns in Mexico. However, the positive autonomy effect is weaker and non-existent for older children and for girls suggesting that gender-directed conditional cash transfer policies may not necessarily hasten educational and gender transition in the process of development. |
| Keywords: | female empowerment, principal component, education, instrumental variable |
| JEL: | D1 I2 J1 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5438&r=lab |
| By: | Francesco Bogliacino (European Commission, JRC-IPTS); Marco Vivarelli (Università Cattolica) |
| Abstract: | In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour-friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets. |
| Keywords: | Technological change, corporate R&D, employment, product innovation, GMMSYS |
| JEL: | O33 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/1/doc2010-55&r=lab |
| By: | AUTIERO, Giuseppina (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy); BRUNO, Bruna (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy) |
| Abstract: | The starting point in this paper is based on the strand of the literature on corporatist systems stressing the role of co-operation and consensus in wage bargaining in order to reach better economic performances. In order to model a co-operative regime in the classical framework in which the monopoly union controls wages and the firm controls employment, we introduce social preferences with some degree of other-regarding concern(ORC) such that each agent's objective function is a linear combination of her own welfare and the other's. The results show that under specific conditions concerning the degree of ORC, one may obtain an employment level higher than in the selfish case and wage moderation. |
| Keywords: | wage bargaining; corporatism; cooperation; social preferences |
| JEL: | J50 Z13 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0072&r=lab |
| By: | Anwar, Mumtaz; Faridi, Muhammad Zahir; Chaudhry, Imran Sharif; Majeed, Asma |
| Abstract: | Abstract: The foremost objective of this paper is to investigate the various determinants of self-employment in Pakistan, considering primary source of data at the district level. The sample of 494 workers residing in Bahawalpur district has been interviewed. We have employed Logistic Regression technique to estimate the determinants of self-employment model. The study concludes that experience and age of the workers have positive and significant impact on self-employment. Moreover, educational attainment and good health variables have also significant and positive influence on workers’ decision to be self-employed. Based on the results and discussions, study suggests that government should provide technical and agricultural education at basic and secondary level to the workers. It is also concluded that health facilities should be provided at the massive scale particularly in rural areas. |
| Keywords: | Self-Employment; Logistic Regression; Experience; Health; Educational attainment; Household assets; Bahawalpur; Pakistan |
| JEL: | D10 J23 |
| Date: | 2010–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28196&r=lab |
| By: | Rondinelli C (Bank of Italy); Zizza R (Bank of Italy) |
| Abstract: | The negative association between fertility and female labour supply is complicated by the endogeneity of fertility. We address this problem by using an exogenous varia- tion in family size caused by infertility shocks, related to the fact that nature prevents some women from achieving their desired fertility levels. Despite a widely-documented reduction of female labour supply around childbirth, using the SHIW we nd that this eect dissipates over time, with some signs of penalties relating to job quality and ca- reers. Results are conrmed by exploiting the Birth Survey, with insights of a dierent impact according to the age of the child. |
| Date: | 2011–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2011-04&r=lab |
| By: | Fenglian Du; Xiao-yuan Dong |
| Abstract: | China’s transition from a centrally planned to a market economy has substantially eroded governmental support for childcare. This paper examines the labor force participation and childcare choices of urban Chinese women during the economic transition and explores the distributional implications of childcare reform. The analysis shows that following child care reform, access to informal caregivers became increasingly critical for women’s labor force participation. The rise of women’s dependence on informal caregivers apparently accounted for much of the decline in women’s labor force participation during the period from 1997 to 2006. In effect, child care reform heightened the tensions between income earning and child rearing for women who had no access to informal care providers and also could not afford to use formal care services. |
| JEL: | H31 J13 J16 J22 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:win:winwop:2010-04&r=lab |
| By: | Barrett, Alan; Kelly, Elish |
| Abstract: | In the mid 2000s Ireland experienced a large inflow of immigrants, partly in response to strong economic growth but also in response to its decision to allow full access to its labour market when EU expansion occurred in May 2004. Between 2004 and 2007, the proportion of non-nationals living in Ireland almost doubled, increasing from 7.7 to 13.1 percent. Between 2008 and 2009, Ireland experienced one of the most acute downturns in economic activity in the industrialised world, with a cumulative fall in Gross National Product of close to 14 percent. In this paper, we assess how this downturn has impacted upon the employment outcomes of non-nationals relative to natives. We find huge job losses among immigrants, with an annual rate of job loss of close to 20 percent in 2009, compared to 7 percent for natives. A higher rate of job loss for immigrants is found to remain when we control for factors such as age and education. We also show how an outflow of non-nationals is occurring. The findings have many implications. In particular, the results point to economic vulnerability for immigrants. However, they also point to a potential macroeconomic benefit to Ireland in terms of a flexible labour supply adjustment. |
| Keywords: | immigrants/immigration/Ireland/recession |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp355&r=lab |
| By: | MARZANO, Elisabetta (Dipartimento di Studi Economici - Università degli Studi di Napoli Parthenope) |
| Abstract: | The research deals with the characteristics of the irregular labour. Current literature considers that irregular labour arises because of the heavy tax burden on labour, or because of the existence of regulations which impose too many constraints on the labour market. In Italy the labour market has some effective constraints, for instance, due to firing regulations, minimum wage legislation, or to regulations on multiple job holdings (for instance it is only since last year that retired people can have new jobs legally), whereas, regarding taxation, we think that it is not always a valid explanation of irregular labour. Actually, during past years there were several facilities to new hiring, especially in Southern Italy. We suggest that irregular jobs can originate from different causes, and, consequently, they can have different characteristics, referred to as good and bad irregular match. As to our opinion, dual labour market theories are the main framework for studying this phenomenon. This theory assesses that there are two tiers in the labour market, therefore, two type of jobs: the jobs in the primary sector and those in the secondary sector; the secondary tier of the market is the one where turnover is more accentuated. This hypothesis is supported by some empirical observation about irregular labour. Actually, data available for Italy, (INPS), tells us that irregular workers, in the most of cases, have been employed very recently. The 85% of irregular workers censored by INPS during 2001 had been working for less than 12 months; the same percentage in 2002 was 0.88. Dual labour market approach has been used by Boeri and Garibaldi (2002), who analyzed irregular labour in depressed areas. We use a similar framework, which is mainly adapted from the research of Acemoglu (2001), where dualism arises as endogenous choice caused by the different technology used in two different sectors. |
| Keywords: | bad irregular match; good irregular match |
| JEL: | E26 J31 J42 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0081&r=lab |
| By: | André van Stel; Mirjam van Praag; José Maria Millan; Emilio Congregado; Concepcion Roman |
| Abstract: | Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital is, though, only one of the input factors into the production process of her venture. The value of other input factors, such as (knowledge) capital and labor is likely to be affected by the education level of the possible stakeholders in the entrepreneur's venture. The education distribution of the (local) population may thus shape the supply function of the entrepreneur. Likewise, the demand function faced by the entrepreneur is also likely to be shaped by the taste, sophistication and thus the education level of the population in their role as consumers. In other words, a population with a higher education level may be associated with (i) a working population of higher quality; (ii) more and/or higher quality universities with a positive effect on research and development (R&D) and knowledge spillovers leading to more high tech and innovative ventures; and finally, (iii) a more sophisticated consumer market. Based on this, we formulate the following proposition: The performance of an entrepreneur is not only affected positively by her own education level but in addition, also by the education level of the population. We test this proposition using an eight years (1994-2001) panel of labor market participants in the EU-15 countries from which we select individuals who have been observed as entrepreneurs. We find strong support for a positive relationship between enrolment rates in tertiary education in country j and year t and several measures of the performance of individual entrepreneurs in that same country and year, including survival and the probability that an entrepreneur starts employing personnel and maintains as an employer for a longer period of time. An implication of our novel finding is that entrepreneurship and higher education policies should be considered in tandem with each other. |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201103&r=lab |
| By: | Ferrari, Filippo |
| Abstract: | Job satisfaction is the degree to which people like their jobs. Companies are interested in job satisfaction of their employees, because it is positively correlated with certain desired outcomes and contributes to reduce significantly the rate of absenteeism and job turnover. Job satisfaction needs to be divided into three separate but related components: the overall opinion about the job, affective experience at work, beliefs about the job itself, and can be considered as a global feeling about the job or as a related constellation of attitudes about various aspects or facets of the job. The global approach is used when the overall attitude is of interest, the facet approach is used to find out which parts of job produce satisfaction or dissatisfaction. This article presents and discusses the results of a study carried out using both approaches to get a complete picture of employee job satisfaction on a consistent and significant sample of young workers (less than three years of tenure) belonging to the mechanical sector in a province in the Northeast of Italy. Using an analytical protocol the present study has identified aspects of work related (positively and negatively) to the job satisfaction. |
| Keywords: | Human resources management; Job Satisfaction; Need/Satisfaction Theory; Apprenticeship; |
| JEL: | J28 M54 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27993&r=lab |
| By: | McCoy, Selina; Byrne, Delma; Banks, Joanne |
| Abstract: | It is well established that cultural and economic resources imparted to children vary significantly by social class. Literature on concerted cultivation has highlighted the extent to which out-of-school activities can reproduce social inequalities in the classroom. Within this literature however, little attention has been given to the role of gender in concerted cultivation. In this paper, we use data from the first wave of the Growing Up in Ireland longitudinal study to consider how both social class and gender influence the level and type of out-of-school activities in which children engage. Moreover, we examine how out-of-school activities, class and gender impact on children's school engagement and academic achievement. We find that while childrearing logics tend to operate within social class categories, there is an additional cultural aspect of gender in the uptake of different types of out-of-school activities. Our findings suggest the need to move beyond explanations of concerted cultivation to explain gender differences in maths and reading attainment. |
| Keywords: | social class,concerted cultivation,gender,school engagement,academic achievement,maths performance,reading performance |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp362&r=lab |
| By: | Sircar, Jyotirmoy |
| Abstract: | This paper looks at the issue of “invisibility” of women’s work in the context of the National Sample Surveys and Census in the 1990s. Moreover it critically looks at the System of National Accounts 1993 which is the basis of the National Sample Surveys and Census. It further shows the advantages that Time Use Survey has over the other two in capturing women’s work in a better way and hence recommends its use alongwith National Sample Surveys. Finally it also looks at the trends of the female work force across the 1990s wherein we see a growing concentration of women workers in the lower rungs of the labor market. |
| Keywords: | SNA; Capturing Women's work; Trends in Female Work Force. |
| JEL: | B40 J22 J16 |
| Date: | 2010–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27710&r=lab |
| By: | Davia, Maria A.; McGuinness, Seamus; O'Connell, Philip J. |
| Abstract: | This paper examines the factors determining variations in international rates of overeducation. We find significant effects for a range of factors including labour market structural imbalances, risk, trade-union density and the structure of academic funding. The results suggest that international levels of overeducation are particularly sensitive to variations in higher education funding arrangements. |
| Keywords: | overeducation,international variation,mismatch |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp365&r=lab |
| By: | Biørn, Erik (Dept. of Economics, University of Oslo) |
| Abstract: | When using data from individuals who are in the labour force to disentangle the empirical relevance of cohort, age and time effects for sickness absence, the inference may be biased, affected by sorting-out mechanisms. One reason is unobserved heterogeneity potentially affecting both health status and ability to work, which can bias inference because the individuals entering the data set are conditional on being in the labour force. Can this sample selection be adequately handled by attaching unobserved heterogeneity to non-structured fixed effects? In the paper we examine this issue and discuss the econometric setup for identifying from such data time effects in sickness absence. The inference and interpretation problem is caused, on the one hand, by the occurrence of time, cohort and age effects also in the labour market participation, on the other hand by correlation between unobserved heterogeneity in health status and in ability to work. We show that running panel data regressions, ordinary or logistic, of sickness absence data on certain covariates, when neglecting this sample selection, is likely to obscure the interpretation of the results, except in certain, not particularly realistic, cases. However, the fixed individual effects approach is more robust in this respect than an approach controlling for fixed cohort effects only. |
| Keywords: | Sickness absence; health-labour interaction; cohort-age-time problem; self-selection; latent heterogeneity; bivariate censoring; truncated binormal distribution; panel data |
| JEL: | C23 C25 I38 J22 |
| Date: | 2010–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2010_020&r=lab |
| By: | Alexander Hijzen; Danielle Venn |
| Abstract: | The present paper provides the most comprehensive assessment to date of the impact of short-time work (STW) schemes during the 2008-09 crisis. The analysis covers 19 OECD countries, 11 of which operated a short-time work scheme before the crisis, five countries introduced a new scheme during the crisis period and three countries never had a short-time work scheme. In order to identify the causal effects of short-time work, a difference-in-differences approach is adopted that exploits the variation in labour-adjustment patterns and the intensity with which STW schemes are used across countries and time. The estimates support the conclusion that STW schemes had an economically important impact on preserving jobs during the economic downturn, with the largest impacts of STW on employment in Germany and Japan among the 16 countries considered. However, the positive impact of STW was limited to workers with permanent contracts, thereby further increasing labour market segmentation between workers in regular jobs and workers in temporary and part-time jobs. The estimated jobs impact is smaller than the potential number of jobs saved as implied by the full-time equivalent number of participants in short-time work, suggesting that STW schemes end up supporting some jobs that would have been maintained in the absence of the subsidy. However, the estimated deadweight is less than that usually estimated for other job subsidy measures. As the OECD area is only just starting to emerge from the crisis, it is still too early to assess the impact of STW schemes in the longer term. Indeed, the main concerns about STW schemes relate to their potentially adverse impacts on the vigour of employment growth during the recovery and economic restructuring in the longer run.<BR>Ce document fournit l'évaluation la plus complète à ce jour de l'impact des dispositifs de chômage partiel au cours de la crise de 2008-09. L'analyse couvre 19 pays de l'OCDE, dont 11 disposant d’un dispositif de chômage partiel avant la crise, cinq pays en ayant introduit un nouveau au cours de la période de crise et trois pays n'en ayant jamais eu. Afin d'identifier les effets de causalité du chômage partiel, une approche par différence en différences est adoptée, qui exploite la variation dans les modalités d’ajustement de l’emploi et l'intensité avec laquelle les dispositifs de chômage partiel sont utilisés à travers les pays et le temps. Les estimations viennent étayer la conclusion selon laquelle les systèmes d’indemnisation du chômage partiel ont un impact économique important dans la préservation de l’emploi en phase de ralentissement de l’économie, avec des dispositifs de chômage partiel ayant les plus forts impacts sur l’emploi parmi les 16 pays considérés en Allemagne et au Japon. Toutefois, l’incidence bénéfique du chômage partiel s’est limitée aux effectifs permanents, creusant ainsi encore davantage le fossé avec les travailleurs temporaires et à temps partiel L'impact estimé sur l’emploi est plus faible que le nombre potentiel d'emplois sauvés comme le sous-entend le nombre de participants au chômage partiel en équivalent plein temps, ce qui donne à penser que les dispositifs de chômage partiel soutiennent certains emplois qui auraient été maintenus même sans subvention. Toutefois, l’effet d’aubaine est inférieur à celui qui est généralement estimé pour d’autres types d’aides à l’emploi. La zone OCDE étant tout juste en train de sortir de la crise, il est trop tôt encore pour déterminer l’impact des dispositifs de chômage partiel à plus long terme. En effet, les principales préoccupations concernant les dispositifs de chômage partiel tiennent à leur impact potentiellement négatif sur la vigueur de la croissance de l'emploi pendant la reprise et les restructurations économiques à plus long terme. |
| JEL: | J23 J65 J68 |
| Date: | 2011–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:115-en&r=lab |
| By: | Bryan M (Institute for Social and Economic Research) |
| Abstract: | We use matched employer-employee data to explore the relationship between employeesÂ’ access to flexible working arrangements and the amount of informal care they provide to sick or elderly friends and relatives. Flexitime and the ability to reduce working hours are each associated with about 10% more hours of informal care, with effects concentrated among full-time workers providing small amounts of care. The wider workplace environment beyond formal flexible work also appears to facilitate care. Workplaces do not respond to the presence of carers by providing flexible work, instead there is some underlying selection of carers into flexible workplaces. |
| Date: | 2011–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2011-01&r=lab |
| By: | Cahuc, Pierre (Ecole Polytechnique, Paris); Carcillo, Stéphane (University of Paris 1 Panthéon-Sorbonne) |
| Abstract: | In October 2007 France introduced an exemption on the income tax and social security contributions that applied to wages received for hours worked overtime. The goal of the policy was to increase the number of hours worked. This article shows that this reform has had no significant impact on hours worked. Conversely, it has had a positive impact on the overtime hours declared by highly qualified wage-earners, who have opportunities to manipulate the overtime hours they declare in order to optimize their tax situation, since the hours they work are difficult to verify. |
| Keywords: | tax exemption, overtime hours, working time |
| JEL: | H24 H25 J22 J30 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5439&r=lab |
| By: | Hassink, Wolter (Utrecht University); van den Berg, Bernard (University of York) |
| Abstract: | Patterns of informal care are documented throughout the day with Dutch time use diary data. The diary data enable us to identify a, so far overlooked, source of opportunity costs of informal care, i.e. the necessity to perform particular tasks of informal care at specific moments of the day. Some care tasks are relatively unshiftable, while other tasks are shiftable implying that they can be performed at other moments of the day or even on different days. In particular, household and organization activities seem to be shiftable for employed caregivers, while personal care seems to contain unshiftable activities. This implies an additional opportunity cost of providing personal care tasks. As the care recipient’s need for care may be related to the possibility to shift informal care throughout the day, we conclude that one should be careful with using care need as an instrument of informal care in labour supply equations. |
| Keywords: | use of time, joint production, informal care, paid work, opportunity cost, labor supply |
| JEL: | J2 I3 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5433&r=lab |
| By: | Carlos Bozzoli; Tilman Brück; NIna Wald |
| Abstract: | Many Colombians are confronted with the ongoing conflict that influences their decision making in everyday life, including their behavior in labor markets. This study focuses on the impact of violent conflict on self-employment, enlarging the usual determinants with a set of conflict variables. In order to estimate the effect of conflict on self-employment, we employ fixed effects estimation. Three datasets are combined for estimation: the Familias en Acción dataset delivers information about individuals, a second dataset contains different indicators of the Colombian conflict at the municipality level and the third dataset includes taxes to measure a municipality's economic situation. Our results show that high homicide and displacement rates in the community of origin reduces self-employment, while a high influx of displaced increases the probability of self-employment in the destination municipality. |
| Keywords: | Self-employment, civil conflict, rural labor markets, Colombia |
| JEL: | C23 J16 J24 O10 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1098&r=lab |
| By: | Holzer, Harry J. (Georgetown University) |
| Abstract: | This paper reviews the evidence on the effects of less-skilled immigration to the U.S., and their implications for immigration reform. It begins with a review of the costs of less-skilled immigration, in terms of competition to native-born American workers; and the benefits of such immigration in the form of lower consumer prices, higher employer profits, and greater efficiency for the U.S. economy. Effects of different legal categories of immigrants and of immigrant integration over time are considered. The paper then reviews various reform proposals and other ideas that might raise the net benefits associated with less-skilled immigration to the U.S. |
| Keywords: | immigration, employment, less-educated workers |
| JEL: | J1 J15 J18 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp22&r=lab |
| By: | B. Cesi; Dimitri Paolini |
| Abstract: | We analyze how authorizing a new university affects welfare when the students’ education depends on the peer group effect. Students are horizontally differentiated according to their ability and the distance from the university. Comparing a monopolistic university with a two-universities model we find that allowing a “new” university is welfare improving when the monopolistic university is only attended by able students with less mobility constraints. This occurs when mobility costs are sufficiently high. When mobility costs are low, a negative externality arises and welfare decreases. The negative externality comes through the peer group effect - high ability students that would have gone to the monopolistic university go to the university with the lower average ability. These students end up in a university with students whose ability was not high enough to go to the monopolist. On the other hand, students remaining in the good university benefit from a lower average ability. Thus, a new university is welfare improving only for those with low ability that in the monopolistic scenario would remain unskilled. When, instead, the mobility cost is high, the monopolist leaves out a significative mass of individuals. In this case, no negative externality arises because no student swaps university therefore a "new" university is welfare improving. However, this welfare improvement makes the opportunities for a higher education less equal (according to Romer, 1998) because an "external circumstance" like mobility cost, rather than own ability, becomes the main determinant of the students’ human capital. |
| Keywords: | peer group quality; mobility costs; universities |
| JEL: | I21 I23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201101&r=lab |
| By: | Kelly Labar (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | In this paper, I study the intergenerational mobility of education and income in China. Using the CHNS database which gives information on parental educational attainment and income level, I show that there is a relatively high intergenerational mobility in China, compared to other developed and developing countries. Even if parents' social characteristics influence the child's ones, the transmission of parents' educational and income level remains low. Nevertheless, I stress a growing impact of parents' income on the determination of children educational attainment, what can be an increasing factor of income inequality in the future. Moreover, I emphasize that parents' farming activity plays an important and significant negative role in the child's educational level. |
| Keywords: | cerdi |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00556982&r=lab |
| By: | Graziella Bertocchi; Arcangelo Dimico |
| Abstract: | ABSTRACT We investigate the impact of slavery on the current performances of the US economy. Over a cross section of counties, we find that the legacy of slavery does not affect current income per capita, but does affect current income inequality. In other words, those counties that displayed a higher proportion of slaves are currently not poorer, but more unequal. Moreover, we find that the impact of slavery on current income inequality is determined by racial inequality. We test three alternative channels of transmission between slavery and inequality: a land inequality theory, a racial discrimination theory and a human capital theory. We find support for the third theory, i. e., even after controlling for potential endogeneity, current inequality is primarily influenced by slavery through the unequal educational attainment of blacks and whites. To improve our understanding of the dynamics of racial inequality along the educational dimension, we complete our investigation by analyzing a panel dataset covering the 1940-2000 period at the state level. Consistently with our previous findings, we find that the educational racial gap significantly depends on the initial gap, which was indeed larger in the former slave states. |
| Keywords: | Slavery, development, inequality, institutions, education. |
| JEL: | D02 H52 J15 O11 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:mod:depeco:0634&r=lab |
| By: | Decio Coviello (:Faculty of Economics, University of Rome "Tor Vergata"); Andrea Ichino (University of Bologna); Nicola Persico (Newyork University) |
| Abstract: | We show that task juggling, i.e., the spreading of effort across too many active projects, decreases the performance of workers, raising the chances of low throughput, long duration of projects and exploding backlogs. Individual speed of job completion cannot be explained only in terms of effort, ability and experience: work scheduling is a crucial “input” that cannot be omitted from the production function of individual workers. We provide a simple theoretical model to study the effects of increased task juggling on the duration of projects. Using a sample of Italian judges we show that those who are induced for exogenous reasons to work in a more parallel fashion on many trials at the same time, take longer to complete similar portfolios of cases. The exogenous variation that identifies this causal effect is constructed exploiting the lottery that assigns cases to judges together with the procedural prescription requiring judges to hold the first hearing of a case no later than 60 days from filing. |
| Keywords: | Individual production function, work scheduling, duration of trials |
| JEL: | J0 K0 M5 |
| Date: | 2011–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:185&r=lab |
| By: | Phillip Toner |
| Abstract: | This paper provides an account of the main approaches, debates and evidence in the literature on the role of workforce skills in the innovation process in developed economies. It draws on multiple sources including the innovation studies discipline, neoclassical Human Capital theory, institutionalist labour market studies and the work organisation discipline. Extensive use is also made of official survey data to describe and quantify the diversity of skills and occupations involved in specific types of innovation activities. |
| Date: | 2011–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2011/1-en&r=lab |
| By: | Tamm, Katrin (University of Tartu); Eamets, Raul (University of Tartu); Mõtsmees, Pille (University of Tartu) |
| Abstract: | The growing awareness of the issue of corporate social responsibility (CSR) has raised the questions about how responsible behavior of firms would impact employees’ well-being. This paper investigates the link between corporate social responsibility and job satisfaction, which is a more widely recognized measure to assess well-being at work. Based on the survey of 3637 employees in Estonia, Latvia and Lithuania, measures of internal and external social responsibility are found to be positively associated with job satisfaction. Findings of the study indicate that employees’ assessments on various aspects of their job are noticeably higher in firms that are perceived as more engaged in CSR activities both towards their internal and external stakeholders. A further outcome of the study emphasizes the negative link between firm size and corporate social responsibility thus reflecting that smaller firms tend to show higher assessments regarding CSR. Similar relationships are also found between firm size and job satisfaction. |
| Keywords: | corporate social responsibility, stakeholder view, employee engagement, job satisfaction |
| JEL: | M14 M52 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5407&r=lab |
| By: | Berthoud R (Institute for Social and Economic Research) |
| Abstract: | Survey data can be used to measure the extent of employment disadvantage experienced by disabled people at any point in time. Administrative statistics showed a sharp increase in the number of people claiming incapacity benefits during the 1970s, ‘80s and early ‘90s, though the numbers have levelled off since then. This paper aims to bridge the gap between these two approaches, using survey data to plot trends over time in the prevalence of disability, and in the employment rates of disabled people, in a way which is independent of, but comparable with, benefit statistics. The research is mainly based on General Household Survey data across the period 1974 to 2005. Much of the analysis is based on a loose definition of disability (limiting long-standing illness) but this is effectively complemented by more detailed data on health conditions available in some GHS years. The research confirms that both the prevalence of reported disability, and the extent of economic disadvantage faced by disabled people, increased over the period analysed, but it is difficult to link the timing of the trends to changes in either national unemployment rates or in social security policy. |
| Date: | 2011–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2011-03&r=lab |
| By: | Sáez-Martí, Maria (University of Zurich); Zenou, Yves (Department of Economics, Stockholm University and Research Institute of Industrial Economics) |
| Abstract: | Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process which depends on parents’ investment on the trait and the social environment where children live. We show that, if a high enough proportion of employers have taste-based prejudices against minority workers, their prejudices are always self-fulfilled in steady state. Affirmative Action improves the welfare of minorities whereas integration is beneficial to minority workers but detrimental to workers from the majority group. If Affirmative Action quotas are high enough or integration is strong enough, employers’ negative stereotypes cannot be sustained in steady-state. |
| Keywords: | Ghetto culture; overlapping generations; rational expectations; multiple equilibria; peer effects |
| JEL: | J15 J71 |
| Date: | 2011–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2011_0003&r=lab |
| By: | Börsch-Supan, Axel; Weiss, Matthias (Mannheim Research Institute for the Economics of Aging (MEA)) |
| Abstract: | This paper studies the relation between workers’ age and their productivity in work teams. We explore a unique data set that combines data on errors occurring in the production process of a large car manufacturer with detailed information on the personal characteristics of workers responsible for the errors. We do not find evidence that productivity declines with age. |
| JEL: | J24 J14 D24 |
| Date: | 2011–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:mea:meawpa:07148&r=lab |
| By: | Francesca Francavilla, (Policy Studies Institute at University of Westminster); Gianna Claudia Giannelli (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Gabriela Grotkowska (University of Warsaw); Mieczyslaw W. Socha (University of Warsaw) |
| Abstract: | The study provides a comparison of the size and value of unpaid family care work in two European member States, Italy and Poland. A micro-data analysis is conducted using the Italian and Polish time use surveys. Both the opportunity cost and the market replacement approaches are employed to measure family care work distinguishing between childcare and care of the elderly. The comparison between the two countries reveals that Italians participate somewhat less than Poles in child care, but substantially more in elderly care, because of demographic factors. However, the main explanation of the difference in the value of unpaid family care work, which is higher in Italy, is to be attributed to the discrepancy in hourly earnings, since average earnings of Poles are about one fifth of those of Italians. The value of unpaid family care work is more comparable when computed as percentage of the national GDP. Depending on the approach, it ranges between 3.7 and 4.4 per cent of the Polish GDP and 4.1 and 5 per cent of the Italian GDP. The national values of these activities are discussed and an interpretation of the country differentials in the family caretaking gender gaps is given in terms of differences in culture, economic development and institutions. |
| Keywords: | Time Use, Unpaid Work, Care-giving, Child care, Elderly care, Poland, Italy |
| JEL: | E01 E26 J13 J14 J16 J22 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2011_03.rdf&r=lab |
| By: | Hryshko, Dmytro (University of Alberta, Department of Economics); Luengo-Prado, Maria Jose (Northeastern University); Sorensen, Bent (University of Houston) |
| Abstract: | We study the determinants of individual attitudes towards risk and,in particular,why some individuals exhibit extremely high risk aversion. Using data from the Panel Study of Income Dynamics we find that policy induced increases in high school graduation rates lead to significantly fewer individuals being highly risk averse in the next generation. Other significant determinants of risk aversion are age, sex, and parents' risk aversion. We verify that risk aversion matters for economic behavior in that it predicts individuals' volatility of income. |
| Keywords: | schooling reforms; risk attitudes; intergenerational persistence |
| JEL: | E21 I29 |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2011_002&r=lab |
| By: | DESTEFANIS, Sergio Pietro (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy); FONSECA, Raquel (RAND Corporation) |
| Abstract: | A matching theory approach is utilised to assess the impact on the Italian labour market of the 1997 legge Treu, which considerably eased the regulation of temporary work and favoured its growth in Italy. We re-parameterise the matching function as a Beveridge Curve and estimate it as a production frontier. We find huge differences in matching efficiency between the South and the rest of the country. The legge Treu appears to have reduced unemployment in the more developed regions of the country but did not greatly affect the matching efficiency of the regional labour markets. |
| Keywords: | temporary contracts; matching efficiency; regional disparities |
| JEL: | C24 J64 J69 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0093&r=lab |
| By: | Alcalde, Jose; Romero-Medina, Antonio |
| Abstract: | This paper proposes the notion of E-stability to conciliate Pareto efficiency and fairness. We propose the use of a centralized procedure, the Exchanging Places Mechanism. It endows students a position according with the Gale and Shapley students optimal stable matching as tentative allocation and allows the student to trade their positions. We show that the final allocation is E-stable, i.e. efficient, fair and immune to any justifiable objection that students can formulate. |
| Keywords: | School allocation problem; Pareto efficient matching |
| JEL: | D71 C71 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28206&r=lab |
| By: | Parodi, Giuliana; Sciulli, Dario |
| Abstract: | We apply dynamic probit models allowing for unobserved heterogeneity and endogenous initial conditions to IT-SILC data to investigate the low income persistence of households with disabled members. We find that their probability of being in a low income state is higher when compared with households without disabled members. In both cases household head’s characteristics, as employment status and education, contribute to determine low income positions. Our results also support the hypothesis of endogenous initial conditions. Both unobserved heterogeneity and state dependence are important to determine low income positions. Our findings suggest that a structural intervention geared at lifting households out of low income in future requires to get them out of low income at present. Moreover, preventing rather than rescuing actions are preferable. |
| Keywords: | Income persistence; disability; dynamic probit model; initial conditions. |
| JEL: | J14 C23 I32 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28303&r=lab |
| By: | ANDINI, Corrado (Departamento de Gestão e Economia - Universidade da Madeira) |
| Abstract: | A 1997 report by the Council of Economic Advisers started a large research effort about the effects of the unemployment rate on the welfare participation rate and vice-versa, with special regard to the 1990s in the United States. In this paper the relationship between the US unemployment rate and the welfare participation rate is examined in a structural VAR. It is found that the unemployment rate does not Granger-cause the welfare participation rate, while the converse is true. Moreover, a negative shock to the welfare participation rate predicts a reduction in the unemployment rate. The conclusion is that the decline in the welfare participation rate in the 1990s should be attributed to restrictive welfare reforms, not to the fall in the unemployment rate. Further, the political choice to reduce the welfare participation rate may have inflated the reduction in the unemployment rate, by increasing the number of people willing to accept peripheral jobs, for instance in the Eating and drinking places. |
| Keywords: | welfare; unemployment; structural VAR |
| JEL: | J20 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0080&r=lab |
| By: | Julien Gourdon (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | The relationship between trade liberalization and inequality has received considerable attention in recent years. The primary purpose of this paper is to present new results on the sources of wage inequalities in manufacturing taking into account South-South (S-S) trade. Globalization not only leads to increasing North-South (N-S) trade, but the direction and composition of trade has also changed. More trade is carried out between developing countries. We observe increasing wage inequality is more due to the South-South trade liberalization than to the classical trade liberalization with northern countries. The second purpose is to elucidate the link between the direction of trade and technological change, arguing that it might explain why we obtain different results for South-South trade and North-South trade on wage inequality. A part of this increasing wage inequality due to S-S trade comes from the development of N-S trade relationship in S-S trade which increases wage inequality in middle income developing countries. However the fact that S-S trade is more skill intensive sector oriented increase wage inequality for all developing countries. |
| Keywords: | international trade;Wage Inequality;Skill-biased technical change |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00557113&r=lab |
| By: | Borghans, Lex (Maastricht University); Gielen, Anne C. (IZA); Luttmer, Erzo F.P. (Dartmouth College) |
| Abstract: | This paper examines how a change in the generosity of one social assistance program generates spillovers onto other social assistance programs. We exploit an age discontinuity in the stringency of the 1993 Dutch disability reforms to estimate the causal effect of exit from disability insurance (DI) on participation in other social assistance programs. We find strong evidence of "social support shopping": 43 percent of those induced to leave DI due to the reform receive an alternative form of social assistance two years after the implementation of the reform. As a result, for each Euro saved in DI benefits, the government has to spend an extra 60 cents in other social assistance programs. This crowd-out rate grows from 60% to 69% if we also take into account the response of the partners’ of those affected by the DI reform. The crowd-out effect declines over time, but is still 25% eight years after the reform. |
| Keywords: | crowd-out, spillover effects, social insurance, income assistance, welfare, regression discontinuity, administrative data |
| JEL: | H53 J22 I38 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5412&r=lab |
| By: | James Rockey; Miltiadis Makris |
| Abstract: | The labor share of income varies markedly across the set of democracies. A model of the political process, situated in a simple macroeconomic environment is analyzed in which the cause of this variation is linked to differences in the form of democracy - in particular the adoption of a presidential or parliamentary system. Presidential regimes are associated with lower taxation but lower wages. Robust evidence for the negative impact of a presidential system on the labor share is obtained using a Bayesian Model Averaging approach. Evidence is also provided that this is due to lower taxation. |
| Keywords: | Fertility; Economic growth; Health expenditures |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:11/09&r=lab |
| By: | Helmuth Cremer (Toulouse School of Economics); Catarina Goulão (Toulouse School of Economics) |
| Abstract: | In Europe there are countries whose welfare system is more in the tradition of Beveridge (based on universal flat benefits) and others whose system is mainly Bismarkian (based on benefits related to past contributions).Labor mobility across different countries raises concerns about the sustainability of the most generous and redistributive insurance systems. We address the sustainability of more redistributive insurance systems in a context of labor mobility. In a two/countries seting We find out that a Bismarkian insurance policy is never affected by migration but that the Beveridgean one is. Moreover, our results suggest that the race-to-the-bottom affecting tax rates may be more important under Beveridge-Beveridge competition than under Beveridge-Bismarck competition .Additionally, Bismarkian governments may find it beneficially to adopt a Beveridgean policy. |
| Keywords: | Social insurance, tax competition, mobility, economic integration |
| JEL: | H23 H70 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2010/11/doc2010-53&r=lab |