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on Labour Economics |
| By: | Koskela, Erkki (University of Helsinki); König, Jan (Free University of Berlin) |
| Abstract: | We combine profit sharing for high-skilled workers and outsourcing of low-skilled tasks in partly imperfect dual domestic labour markets, when the wage rate for low-skilled worker is set by a labor union, to analyze how the implementation of profit sharing influence flexible outsourcing and low-skilled labour market outcome. Profit sharing has a positive effect on the low-skilled wage and thus an outsourcing enhancing character. Profit sharing for high-skilled workers increases the low-skilled wage and helps to decrease the wage dispersion. Concerning the employment effects there is an employment reducing effect due to higher low-skilled wage, which can be offset by the employment increasing effect of higher effort of the high-skilled worker. Therefore, the employment effects of profit sharing are ambiguous. |
| Keywords: | flexible outsourcing, profit sharing, dual labour market, employee effort |
| JEL: | J31 J33 J51 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5798&r=lab |
| By: | Bosio, Giulio (University of Milan); Leonardi, Marco (University of Milan) |
| Abstract: | The Bologna process inspired the Italian 3+2 reform of the university system which constitutes a big increase in the supply of college graduates. This paper is a preliminary attempt to identify the effects of the reform on (i) the relative probability (relative to non-graduates) of employment of college graduates in the age range 25-34; (ii) their quality of employment measured with the relative probability of being employed with a temporary contract; (iii) the college wage premium. Using administrative data to identify the gradual introduction of the reform in different universities, we find that the reform increases significantly the relative employment of graduates except for women in the South where the rapid increase of female post-reform graduates has not been absorbed by the weak labour market. Finally we find that post-reform college graduates have a significantly lower college premium with respect to high school graduates than pre-reform graduates. |
| Keywords: | university reforms, college attainment, college wage premium |
| JEL: | I23 I28 J24 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5789&r=lab |
| By: | Caliendo, Marco (IZA); Lee, Wang-Sheng (RMIT University) |
| Abstract: | This paper focuses on estimating the magnitude of any potential weight discrimination by examining whether obese job applicants in Germany get treated or behave differently from non-obese applicants. Based on two waves of rich survey data from the IZA Evaluation dataset, which includes measures that control for education, demographic characteristics, labor market history, psychological factors and health, we estimate differences in job search behavior and labor market outcomes between obese/overweight and healthy weight individuals. Unlike other observational studies which are generally based on obese and non-obese individuals who might already be at different points in the job ladder (e.g., household surveys), in our data, individuals are newly unemployed and all start from the same point. The only subgroup we find in our data experiencing any possible form of labor market discrimination is obese women. Despite making more job applications and engaging more in job training programs, we find some indications that they experienced worse (or at best similar) employment outcomes than healthy weight women. Obese women who found a job also had significantly lower wages than healthy weight women. |
| Keywords: | obesity, discrimination, employment, labor demand |
| JEL: | I10 I12 J23 J70 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5795&r=lab |
| By: | Anghel, Brindusa; de la Rica, Sara.; Dolado, Juan José |
| Abstract: | This paper addresses the role played by Public Sector (PS) employment across different OECD labour markets in explaining: (i) gender differences regarding choices to work in either PS or private sector, and (ii) subsequent changes in female labour market outcomes. To do so, we provide some empirical evidence about cross-country gender differences in choice of employment in the PS vs. the private sector, using the European Community Household Panel (ECHP), in the light of different theories on gender behaviour in the labour market. We also analyze the main determinants of the hourly wage gaps across these two sectors for males and females separately. Finally, we document the main stylized facts about labour market transitions by male and female workers among inactivity, unemployment, working in the PS and working in the private sector. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2011-08&r=lab |
| By: | József Sákovic |
| Abstract: | We model a market for highly skilled workers, such as the academic job market. The outputs of ?rm-worker matches are heterogeneous and common knowledge. Wage setting is synchronous with search: ?rms simultaneously make one personalized offer each to the worker of their choice. With large frictions (delay costs), efficient coordination is not possible, but for small frictions efficient matching with Diamond-type monopsony wages is an equilibrium. |
| Date: | 2011–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:edn:esedps:207&r=lab |
| By: | Lalive, Rafael (University of Lausanne); Schlosser, Analia (Tel Aviv University); Steinhauer, Andreas (University of Zurich); Zweimüller, Josef (University of Zurich) |
| Abstract: | Parental leave regulations in most OECD countries have two key policy instruments: job protection and cash benefits. This paper studies how mothers' return to work behavior and labor market outcomes are affected by alternative mixes of these key policy parameters. Exploiting a series of major parental leave policy changes in Austria, we find that longer cash benefits lead to a significant delay in return to work and that the magnitude of this effect depends on the relative length of job protection and cash benefits. However, despite their impact on time on leave, we do not find a significant effect on mothers' labor market outcomes in the medium run, neither of benefit duration nor of job-protection duration. To understand the relative importance (and interaction) of the two policy instruments in shaping mothers' return to work behavior, we set up a non-stationary job search model in which cash benefits and job protection determine decisions of when to return to work and whether or not to return to the pre-birth employer. Despite its lean structure, the model does surprisingly well in matching empirically observed return to work profiles. The simulation of alternative counterfactual regimes shows that a policy that combines both job protection and benefits payments succeeds to induce mothers to spend some time with the child after birth without jeopardizing their medium run labor market attachment. |
| Keywords: | parental leave, family and work obligations, return to work, labor supply, earnings, family earnings gap |
| JEL: | J13 J18 J22 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5792&r=lab |
| By: | Mahy, Benoît (University of Mons-Hainaut); Rycx, Francois (Free University of Brussels); Volral, Mélanie (University of Mons-Hainaut) |
| Abstract: | This article puts the relationship between wage dispersion and firm productivity to an updated test, taking advantage of access to detailed Belgian linked employer-employee panel data. Controlling for simultaneity issues, time-invariant workplace characteristics and dynamics in the adjustment process of productivity, empirical results reveal the existence of a positive impact from conditional intra-firm wage dispersion to firm productivity (measured by the average value added per hour worked), which however decreases for higher dispersion levels. Findings thus suggest that the incentive effect of wage dispersion, predicted for instance by the 'tournament' model, dominates 'fairness' and/or 'sabotage' considerations. Further results reveal that the influence of wage dispersion on firm productivity is stronger among firms with a larger proportion of highly skilled workers but does not depend on whether wages are collectively renegotiated at the firm level. |
| Keywords: | labour productivity, matched employer-employee panel data, personnel economics, wage dispersion |
| JEL: | J31 J24 M5 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5791&r=lab |
| By: | Benítez-Silva, Hugo.; García Pérez, Jose Ignacio; Jiménez Martín, Sergi |
| Abstract: | Unemployment rates in developed countries have recently reached levels not seen in a generation, and workers of all ages are facing increasing probabilities of losing their jobs and considerable losses in accumulated assets. These events likely increase the reliance that most older workers will have on public social insurance programs, exactly at a time that public finances are suffering from a large drop in contributions. Our paper explicitly accounts for employment uncertainty and unexpected wealth shocks, something that has been relatively overlooked in the literature, but that has grown in importance in recent years. Using administrative and household level data we empirically characterize a life-cycle model of retirement and claiming decisions in terms of the employment, wage, health, and mortality uncertainty faced by individuals. Our benchmark model explains with great accuracy the strikingly high proportion of individuals who claim benefits exactly at the Early Retirement Age, while still explaining the increased claiming hazard at the Normal Retirement Age. We also discuss some policy experiments and their interplay with employment uncertainty. Additionally, we analyze the effects of negative wealth shocks on the labor supply and claiming decisions of older Americans. Our results can explain why early claiming has remained very high in the last years even as the early retirement penalties have increased substantially compared with previous periods, and why labor force participation has remained quite high for older workers even in the midst of the worse employment crisis in decades. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2011-09&r=lab |
| By: | Gustave Goldmann (University of Ottawa); Arthur Sweetman (McMaster University); Casey Warman (Queen's University) |
| Abstract: | The implications of human capital portability -- including interactions between education, language skills and pre- and post-immigration occupational matching -- for earnings are explored for new immigrants to Canada. Given the importance of occupation-specific skills, as a precursor we also investigate occupational mobility and observe convergence toward the occupational skill distribution of the domestic population, although four years after landing immigrants remain less likely have a high skilled job. Immigrants who are able to match their source and host country occupations obtain higher earnings. However, surprisingly, neither matching nor language skills have any impact on the return to pre-immigration work experience, which is observed to be statistically significantly negative. Crucially, English language skills are found to have an appreciable direct impact on earnings, and to mediate the return to pre-immigration education but not labour market experience. |
| Keywords: | Immigration, human capital portability, occupation, education, language |
| JEL: | J24 J61 J62 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1271&r=lab |
| By: | Dean Baker |
| Abstract: | This paper outlines a proposal for a system of work sharing that would give employers an incentive to maintain workers on their payroll at reduced hours as an alternative to laying them off. The system would be attached to the existing system of unemployment compensation, with shorttime compensation as an alternative to unemployment compensation. This means that work sharing would require no new government bureaucracy. In fact, 21 states (including California and New York) already have short-time compensation as an option under their unemployment insurance system. In these states a governmental structure already exists to support work sharing, although there would have to be changes to make the system more user friendly so as to increase take-up rates. |
| Keywords: | work sharing, unemployment, employment, recession, Germany, United States |
| JEL: | E E2 E24 E6 E66 H J J6 J65 J68 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2011-15&r=lab |
| By: | Rebekka Christopoulou (Cornell University); Theodora Kosma (Bank of Greece) |
| Abstract: | This paper examines changes in the Greek wage distribution over 1995-2002 and the role of skills in these changes using a matched employer-employee data set. This data set enables us to account for firm heterogeneity and obtain a more refined picture of the impact of skills. The methodology adopted is the Machado-Mata decomposition technique, which separates the part of wage changes that is due to changes in the job/employer and employee characteristics from the part due to changes in the returns to these characteristics. Our results indicate that the role of skills has been decisive. The skill return effects in combination with the composition effects of tenure, which are arguably responsive to economic developments and market conditions, have had an important contribution to the changes in the Greek wage distribution. On the other hand, the impact of predetermined demographic changes, as those captured by the age and education composition effects, has been relatively milder. |
| Keywords: | Returns to skill; Wage inequality; Quantile regression |
| JEL: | J31 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:bog:wpaper:123&r=lab |
| By: | Carneiro, Pedro (University College London); Loken, Katrine V. (University of Bergen); Salvanes, Kjell G. (Norwegian School of Economics and Business Administration) |
| Abstract: | We study the impact on children of increasing maternity leave benefits using a reform that increased paid and unpaid maternity leave in Norway in July 1977. Mothers giving birth before this date were eligible only for 12 weeks of unpaid leave, while those giving birth after were entitled to 4 months of paid leave and 12 months of unpaid leave. This increased time with the child led to a 2.7 percentage points decline in high school dropout and a 5% increase in wages at age 30. For mothers with low education we find a 5.2 percentage points decline in high school dropout and an 8% increase in wages at age 30. The effect is especially large for children of those mothers who, prior to the reform, would take very low levels of unpaid leave. |
| Keywords: | maternity leave, children's outcomes |
| JEL: | J13 J18 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5793&r=lab |
| By: | Andrea Pescatori; Murat Tasci |
| Abstract: | This paper shows that labor market search frictions do not explain fluctuations in the labor wedge per se. However, the introduction of extensive and intensive margin clarifies that measuring the MRS in terms of total hours artificially introduces procyclicality in the MRS. When the MRS is correctly measured in terms of hours per worker, the labor wedge obtained is less variable than the one of the competitive model. Finally, we show that it is possible to measure a strongly procyclical labor wedge when the actual data generating process is a search model that allows for movements in both margins. |
| Keywords: | Accounting , Business cycles , Economic models , Employment , Labor markets , Unemployment , |
| Date: | 2011–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/117&r=lab |
| By: | Kriechel, Ben (ROA, Maastricht University); Pfann, Gerard A. (Maastricht University) |
| Abstract: | In this paper we study the joint decision process of changing the structure of jobs and laying off individual workers in a firm that downsizes its workforce. A hierarchical decision model is proposed and estimated using personnel data from a firm in demise comparing the characteristics of the individual workers and the structure of the firm's labour force before and after its reorganization. Our results show that workers in jobs in the top levels of each skill group's hierarchy are better protected against downsizing due to larger productivity shocks and larger firing costs. |
| Keywords: | hierarchies, restructuring, control span, job displacement |
| JEL: | J63 J65 L23 L60 L93 M51 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5794&r=lab |
| By: | Macit, Fatih |
| Abstract: | In this paper I investigate how the labor productivity growth is affected from various institutions of the labor market using the empirical evidence from a panel data of OECD countries. I find that benefit replacement rate, benefit duration index, and the tax wedge appear to be significant labor market institutions affecting the labor productivity growth. A higher benefit replacement rate, a longer duration of unemployment benefits, and a higher tax wedge are expected to generate a lower labor productivity growth. |
| Keywords: | Labor Market Institutions; Labor Productivity Growth |
| JEL: | J01 J24 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31727&r=lab |
| By: | Matthew J. Notowidigdo |
| Abstract: | Low-skill workers are comparatively immobile: when labor demand slumps in a city, low-skill workers are disproportionately likely to remain to face declining wages and employment. This paper estimates the extent to which (falling) housing prices and (rising) social transfers can account for this fact using a spatial equilibrium model. Nonlinear reduced form estimates of the model using U.S. Census data document that positive labor demand shocks increase population more than negative shocks reduce population, this asymmetry is larger for low-skill workers, and such an asymmetry is absent for wages, housing values, and rental prices. GMM estimates of the full model suggest that the comparative immobility of low-skill workers is not due to higher mobility costs per se, but rather a lower incidence of adverse labor demand shocks. |
| JEL: | H53 J01 R31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17167&r=lab |
| By: | Stacy Dale; Alan B. Krueger |
| Abstract: | We estimate the monetary return to attending a highly selective college using the College and Beyond (C&B) Survey linked to Detailed Earnings Records from the Social Security Administration (SSA). This paper extends earlier work by Dale and Krueger (2002) that examined the relationship between the college that students attended in 1976 and the earnings they self-reported reported in 1995 on the C&B follow-up survey. In this analysis, we use administrative earnings data to estimate the return to various measures of college selectivity for a more recent cohort of students: those who entered college in 1989. We also estimate the return to college selectivity for the 1976 cohort of students, but over a longer time horizon (from 1983 through 2007) using administrative data. We find that the return to college selectivity is sizeable for both cohorts in regression models that control for variables commonly observed by researchers, such as student high school GPA and SAT scores. However, when we adjust for unobserved student ability by controlling for the average SAT score of the colleges that students applied to, our estimates of the return to college selectivity fall substantially and are generally indistinguishable from zero. There were notable exceptions for certain subgroups. For black and Hispanic students and for students who come from less-educated families (in terms of their parents’ education), the estimates of the return to college selectivity remain large, even in models that adjust for unobserved student characteristics. |
| JEL: | I21 J31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17159&r=lab |
| By: | Gill Wyness |
| Abstract: | With the UK's cap on tuition fees due to rise to £9,000, Gill Wyness looks at the impact of past fee increases on young people's decisions to go to university. |
| Keywords: | wage differentials, returns to education |
| JEL: | I22 I23 I29 J24 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:343&r=lab |
| By: | Barbara Petrongolo; John Van Reenen |
| Abstract: | The rise in joblessness among young people began long before the recession - Barbara Petrongolo and John Van Reenen consider potential explanations. |
| Keywords: | unemployment compensation, job search, youth, recession |
| JEL: | J31 J64 J65 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:338&r=lab |
| By: | Martina Cioni; Marco savioli |
| Abstract: | The 2007 Italian Labour Force Survey contains employee-level data that allow us to analyse the determinants of work safety. Among the most significant determinants of accidents and illnesses occurring at work we find bad working conditions, not being in the first job, dissatisfaction with the current job, gender, and a latent proneness observed with occurrence of accident on the way to work. In line with the majority of economic literature, we do not find having a fixed-term contract significant. Other important findings point out that work accidents and work illnesses are two deeply correlated phenomena, and that there is a structural break after three years of tenure to be taken into account. |
| Keywords: | Work safety, Work accidents, Work illnesses, Fixed-term contracts, Working Conditions. |
| JEL: | J24 J28 J41 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:608&r=lab |
| By: | Carlos Vieira (Departamento de Economia, CEFAGE-UE, Universidade de Évora); Isabel Vieira (Departamento de Economia, CEFAGE-UE, Universidade de Évora) |
| Abstract: | This paper formulates a model of demand for higher education in Portugal considering a wide range of demographic, economic, social and institutional explanatory variables. The estimation results suggest that the number of applicants reacts positively to demographic trends, graduation rates at secondary education, female participation, compulsory schooling and the recent Bologna process. Demand reacts negatively to the existence of tuition fees and to unemployment rates. Within an adverse demographic and economic context, forecasts of demand for the next two decades suggest the need to increase participation rates, to avoid funding problems in the higher education system and increase long-term economic development prospects. |
| Keywords: | Demand for higher education; determinants of university participation; applications forecasting. |
| JEL: | I20 I22 I28 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2011_15&r=lab |
| By: | Figari, Francesco |
| Abstract: | The paper analyses the incentive and the redistributive effects of introducing either a family based or an individual in-work benefit in Italy. The reforms are financed through the abolition of the existing tax credit targeted at inactive people. In-work benefits are means-tested transfers given to individuals conditional on their employment status. The results show an increase in the labour supply of both women in couples (with larger responses to the individual in-work benefit than the family based benefit) and lone mothers. Most of the behavioural changes take place among the poorest individuals with important redistributive effects. |
| Date: | 2011–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2011-15&r=lab |
| By: | Bick, Alexander |
| Abstract: | Consistent with facts for a cross-section of OECD countries, I document that the labor force participation rate of West German mothers with children aged zero to two exceeds the corresponding child care enrollment rate whereas the opposite is true for mothers with children aged three to mandatory school age. I develop a life-cycle model that explicitly accounts for this age-dependent relationship through various types of non-paid and paid child care. The calibrated version of the model is used to evaluate two policy reforms concerning the supply of subsidized child care for children aged zero to two. These counterfactual policy experiments suggest that the lack of subsidized child care constitutes indeed for some females a barrier to participate in the labor market and depresses fertility. |
| Keywords: | Child Care; Fertility; Life-cycle Female Labor Supply |
| JEL: | J13 J22 D10 |
| Date: | 2011–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31713&r=lab |
| By: | Moon, Weh-Sol |
| Abstract: | This paper examines a dynamic stochastic general equilibrium (DSGE) model containing exible prices, search frictions and nominal wage contracts. It is assumed that the nominal hourly wage rate and the hours of work are jointly determined, so-called efficient bargaining, for each period. The frictional labor markets reasonably reflect the volatility of real variables and the fact that productivity is no longer countercyclical. As contract length increases, the volatilities of the unemployment rate and the vacancy rate increase sharply, but those of output and total hours worked do not appreciably change. |
| Keywords: | Business Cycles; Labor Market Frictions; Nominal Wage Contracts |
| JEL: | E32 E24 J41 J64 |
| Date: | 2011–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31716&r=lab |
| By: | Awan, Masood Sarwar; Malik, Nouman; Sarwar, Haroon; Waqas, Muhammad |
| Abstract: | Poverty is a stumbling block in the way of achieving economic development. Cognizant of the essence of Millennium Development Goals (MDGs) and ‘Education for All’ program, education is promulgated as the primary weapon against poverty prevalence. Hence it is important to seek out the effect of different levels of education upon poverty in Pakistan. This study evaluates the effect of different levels of education, experience and gender of the employed individuals (employers, self-employed, wage earners and unpaid family workers) as the determinants of poverty. The data for this task comes from the Household Integrated Economic Survey (HIES) for the years 1998-99 and 2001-02. A logistic regression model is estimated based on this data, with the probability of an individual being poor as the dependent variable and a set of educational levels, experience and gender as explanatory variables. It is found that experience and educational achievement is negatively related with the poverty incidence in both years. Also as we go for the higher levels of education the chances of a person being non-poor increases. Moreover, being a male person provides an advantage in retaining a position above poverty level. |
| Keywords: | Poverty; Education; Pakistan |
| JEL: | H75 I3 I21 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31826&r=lab |
| By: | Andrea Colciago (Department of Economics, University of Milano Bicocca); Lorenza Rossi (Department of Economics and Quantitative Methods, University of Pavia) |
| Abstract: | We propose a flexible prices model where endogenous market structures and search and matching frictions in the labor market interact endogenously. The interplay between firms endogenous entry, strategic interactions among producers and labor market frictions represents a strong amplification channel of technology shocks on labor market variables, and helps addressing the unemployment-volatility puzzle. Consistently with U.S. evidence, new firms create a large fraction of new jobs and grow faster than more mature firms, net firms’ entry is procyclical and the price mark up is countercyclical. |
| Keywords: | Endogenous Market Structures, Firms’ Entry, Search and Matching Frictions |
| JEL: | E24 E32 L11 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:pav:wpaper:262&r=lab |
| By: | Drasch, Katrin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "Cross-sectional studies show that in West Germany women with different levels of educational attainment participate differently in the labor market. In this paper, I examine one potential underlying mechanism: the re-entry of mothers in the labor market after a period of inactivity. I argue that besides societal changes the reforms of parental leave legislation could be responsible for the educational divide in mothers' employment. Hypotheses are derived from human capital theory and labor supply theory assuming a rational behavior of women. Using retrospective life-course data from the IAB study ALWA, I find evidence that women with different levels of educational attainment have different re-entry patterns also when taking the educational attainment of the partner into account. Furthermore, parental leave schemes play a crucial role for re-entries. Some evidence of an educational polarization of re-entry behavior is found after the year 2000." (author's abstract, IAB-Doku) ((en)) |
| Keywords: | erwerbstätige Frauen, Mütter, berufliche Reintegration, Berufsrückkehrerinnen, Erwerbsunterbrechung, IAB-Datensatz Arbeiten und Lernen, Bildungsniveau, Erziehungsurlaub, Erwerbsverhalten, Mutterschaftsurlaub, Westdeutschland, Bundesrepublik Deutschland |
| JEL: | C41 J18 J24 |
| Date: | 2011–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201113&r=lab |
| By: | Carolina Castagnetti (Department of Economics and Quantitative Methods, University of Pavia); Silvia Dal Bianco (Department of Economics and Quantitative Methods, University of Pavia); Luisa Rosti (Department of Economics and Quantitative Methods, University of Pavia) |
| Abstract: | Italian university system was reformed in 2001. This paper tests the screening role of degree scores for 2004-Italian graduates. We find support of the strong screening hypothesis for prereform type degrees, while we do not find any evidence of signalling effects for post-reform 3-years degrees. We gauge that the shutting down of the signal can be partially ascribed to the poor quality of students who obtained a 3-years degree without taking any further education. |
| Keywords: | Screening, Italy, Higher Education |
| JEL: | I23 J08 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:pav:wpaper:269&r=lab |
| By: | Joyce Burnette |
| Abstract: | This paper examines the hypothesis that wage discrimination emerged at the beginning of the twentieth century. I test for wage discrimination by estimating the female-male productivity ratio from samples of manufacturing firms in the northeast, and then comparing the estimated productivity ratio to the wage ratio. I find that women did not face wage discrimination in manufacturing during the nineteenth century. In 1900 there was wage discrimination against women in white-collar jobs, but not in blue-collar jobs. Wage discrimination persisted, and in 2002 the female-male wage ratio was less than the productivity ratio. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:11-18&r=lab |
| By: | Bhuller, Manudeep (Statistics Norway); Mogstad, Magne (Statistics Norway); Salvanes, Kjell G. (Norwegian School of Economics and Business Administration) |
| Abstract: | This paper uses a unique data set with nearly career-long earnings histories to provide evidence on the returns to schooling in current and lifetime earnings. We use these results to assess the importance of life-cycle bias in earnings regressions using current earnings as a proxy for lifetime earnings. To account for the endogeneity of schooling, we apply three commonly used identification strategies. Our estimates demonstrate a strong life-cycle bias, often exceeding the bias from assuming that schooling is exogenous. We further explore the problems caused by life-cycle bias in research on the economic returns to schooling, and discuss possible remedies. |
| Keywords: | returns to schooling, life-cycle bias, lifetime earnings, current earnings, errors-in-variables model |
| JEL: | J24 J31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5788&r=lab |
| By: | Awan, Masood Sarwar; Waqas, Muhammad; Aslam, Muhammad Amir |
| Abstract: | Since few decades ago, the issue of child labour has detained the global attention. This study highlights the supply side determinants of child labor in case of Punjab, Pakistan. Multiple indicator cluster survey 2007-08 for Punjab was used. Probit model was used to capture the objectives of this research. Results shows that the absence of mother’s education, household head’s education, large family size, low level of family income, less education of child etc. were the factors that pushed the children into work that is often damaging to their development. |
| Keywords: | Child labour; MICS; Pakistan |
| JEL: | P36 N3 J21 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31830&r=lab |
| By: | Fernandez, Manuel; Ibanez, Ana Maria; Pena, Ximena |
| Abstract: | This paper studies the use of labor markets to mitigate the impact of violent shocks on households in rural areas in Colombia. It examines changes in the labor supply from on-farm to off-farm labor as a means of coping with the violent shock and the ensuing redistribution of time within households. It identifies the heterogeneous response by gender. Because the incidence of violent shocks is not exogenous, the analysis uses instrumental variables that capture several dimensions of the cost of exercising terror. As a response to the violent shocks, households decrease the time spent on on-farm work and increase their supply of labor to off-farm activities (non-agricultural ones). Men carry the bulk of the adjustment in the use of time inasmuch as they supply the most hours to off-farm non-agricultural work and formal labor markets. Labor markets do not fully absorb the additional labor supply. Women in particular are unable to find jobs in formal labor markets and men have increased time dedicated to leisure and household chores. Additional off-farm supply does not fully cover the decrease in consumption. The results suggest that in rural Colombia, labor markets are a limited alternative for coping with violent shocks. Thus, policies in conflict-affected countries should go beyond short-term relief and aim at preventing labor markets from collapsing and at supporting the recovery of agricultural production. |
| Keywords: | Labor Policies,Rural Poverty Reduction,Housing&Human Habitats,Labor Markets,Regional Economic Development |
| Date: | 2011–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5684&r=lab |
| By: | Chumacero, Rómulo; Paredes, Ricardo |
| Abstract: | We study school choice within the family, analyzing how birth order, gender, innate talent, and family financial restrictions impact the parents´ decision to prioritize the education of one or more of the children over the rest. We find that parents, particularly from lower income homes, are more likely to select more prestigious, higher cost schools for their eldest child, male children and the most talented children. This behavior may explain part of the positive “male bias” in learning and may have a relevant impact on income distribution among family members. |
| Keywords: | School Choice; Siblings; Chile |
| JEL: | D13 C25 |
| Date: | 2011–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31838&r=lab |
| By: | Richard Akresh; Eric V. Edmonds |
| Abstract: | We consider the influence of household-based production on human capital investment. In data from rural Burkina Faso, we document a positive correlation between the presence of girls and enrollment that disappears in households that are able to send out or receive in children. We argue that the connection between education and the sex composition of co-resident children in households that are constrained in their ability to adjust child labor owes to residential rivalry, the idea that having a greater share of resident children with an advantage in household based production increases education by reducing the within-household equilibrium value of child time. |
| JEL: | O15 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17165&r=lab |
| By: | John P. Papay; Richard J. Murnane; John B. Willett |
| Abstract: | Students receive abundant information about their educational performance, but how this information affects future educational-investment decisions is not well understood. Increasingly common sources of information are state-mandated standardized tests. On these tests, students receive a score and a label that summarizes their performance. Using a regression-discontinuity design, we find persistent effects of earning a more positive label on the college-going decisions of urban, low-income students. Consistent with a Bayesian-updating model, these effects are concentrated among students with weaker priors, specifically those who report before taking the test that they do not plan to attend a four-year college. |
| JEL: | I20 I21 J24 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17120&r=lab |
| By: | James Bessen (Research on Innovation, Boston University School of Law, Berkman Center for Internet and Society (Harvard)) |
| Abstract: | Did nineteenth century technology reduce demand for skilled workers in contrast to modern technology? I obtain direct evidence on human capital investments and the returns to skill by using micro-data on individual weavers and an engineering production function. Weavers learned substantially on the job. While mechanization eliminated some tasks and the associated skills, it increased returns to skill on the remaining tasks. Technical change was task-biased, much as with computer technology. As more tasks were automated, weavers’ human capital increased substantially. Although technology increased the demand for skill like today, weavers’ wages eventually increased and inequality decreased, contrary to current trends. |
| Keywords: | skill-biased technical change, technology, mechanization, human capital, wage inequality, learning-by-doing |
| JEL: | J31 N31 O33 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:roi:wpaper:1101&r=lab |
| By: | Karanassou, Marika (University of London); Sala, Hector (Universitat Autònoma de Barcelona) |
| Abstract: | This paper aims at identifying the labour share (wage-productivity gap) as a major factor in the evolution of inequality and employment. To this end, we use annual data for the US, UK and Sweden over the past forty years and estimate country-specific systems of labour demand and Gini coefficient equations. Further to the statistical significance of our models, we validate their economic significance through counterfactual simulations. In particular, we evaluate the contributions of the labour share to the trajectories of inequality and employment during specific time intervals in the post-1990 years. We find that during the nineties the cost of a one percent increase in employment was in the range of 0.7%-0.9% higher inequality in all three countries. However, in the 2000s, whereas the inequality-employment sensitivity ratio slightly fell in the US, it exceeded unity in the countries on the other side of the Atlantic. It obtained its highest value in the UK, where a 1% growth in employment was achieved at the expense of 1.3% worsening in income inequality. In the light of the significant influence of the time-varying labour share on the inequality and employment time paths documented in our sample, the evolution of the wage-productivity gap deserves the attention of policy makers. |
| Keywords: | income inequality, labour income share, employment |
| JEL: | D30 E25 E24 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5796&r=lab |
| By: | Marika Karanassou (Queen Mary, University of London and IZA); Hector Sala (Universitat Autònoma de Barcelona and IZA) |
| Abstract: | This paper aims at identifying the labour share (wage-productivity gap) as a major factor in the evolution of inequality and employment. To this end, we use annual data for the US, UK and Sweden over the past forty years and estimate country-specific systems of labour demand and Gini coefficient equations. Further to the statistical significance of our models, we validate their economic significance through counterfactual simulations. In particular, we evaluate the contributions of the labour share to the trajectories of inequality and employment during specific time intervals in the post-1990 years. We find that during the nineties the cost of a one percent increase in employment was in the range of 0.7%-0.9% higher inequality in all three countries. However, in the 2000s, whereas the inequality-employment sensitivity ratio slightly fell in the US, it exceeded unity in the countries on the other side of the Atlantic. It obtained its highest value in the UK, where a 1% growth in employment was achieved at the expense of 1.3% worsening in income inequality. In the light of the significant influence of the time-varying labour share on the inequality and employment time paths documented in our sample, the evolution of the wage-productivity gap deserves the attention of policy makers. |
| Keywords: | Income inequality, Labour income share, Employment |
| JEL: | D30 E25 E24 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp680&r=lab |
| By: | Alex Bryson; Rafael Gomez; Kerry L. Papps |
| Abstract: | Alex Bryson and colleagues use US baseball data to investigate whether performance suffers if there is too wide a gap between the skills of a team's stars and the rest. |
| Keywords: | skill dispersion, baseball, firm performance |
| JEL: | L23 L25 L83 M51 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:344&r=lab |
| By: | Karl Aiginger (WIFO); Gerard Thomas Horvath (WIFO); Helmut Mahringer (WIFO) |
| Abstract: | This paper investigates the performance of labour markets during the recent crisis. While the crisis had started rather simultaneously across regions and countries, the length and deepness finally proved very heterogeneous. Some countries still have not rebounded, in others inflationary pressure has become a severe problem after output had surpassed pre-crisis level by far. The same holds for labour markets: In some countries employment is now above its pre-crisis peak and unemployment stable or falling, in others the unemployment rate is persistently near or above 10 percent. This paper investigates to which extent labour market performance during the crisis depended on 1. macroeconomic conditions prevailing at the start of the crisis, 2. structural characteristics of the economies, and 3. labour market institutions and policy. Labour Market Performance is analysed against these determinants alone and relative to output performance. Specific emphasis is given to cases in which cross country differentials in labour market performance do not go in parallel to output performance. The growth performance in the USA was better than average, the labour market was deeply affected and has still not rebounded. On the other side Germany experienced a steeper output loss, but had a better labour market performance. Output performance as well as labour market performance is measured by a composite indicator summarising several output and labour indicators. It was derived by Principal Component analyses. |
| Keywords: | financial crisis, cross country performance differences, predictors for crises |
| Date: | 2011–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2011:i:396&r=lab |
| By: | Zinzhu Chen; Prakash Kannan; Prakash Loungani; Bharat Trehan |
| Abstract: | We provide cross-country evidence on the relative importance of cyclical and structural factors in explaining unemployment, including the sharp rise in U.S. long-term unemployment during the Great Recession of 2007-09. About 75% of the forecast error variance of unemployment is accounted for by cyclical factors—real GDP changes (“Okun’s Law”), monetary and fiscal policies, and the uncertainty effects emphasized by Bloom (2009). Structural factors, which we measure using the dispersion of industry-level stock returns, account for the remaining 25 percent. For U.S. long-term unemployment the split between cyclical and structural factors is closer to 60-40, including during the Great Recession. |
| Keywords: | Unemployment |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2011-17&r=lab |
| By: | Siddhartha Bandyopadhyay; Samrat Bhattacharya; Rudra Sensarma |
| Abstract: | We examine how socio-economic and police enforcement variables affect property and violent crimes at different points of the crime distribution in England and Wales over the period 1992-2007. By using data from 43 police force areas, we examine how the effect of real earnings, unemployment, crime detection rate, income inequality and proportion of young people varies across high and low crime areas. Six crime categories are examined - burglarly, theft and handling, fraud and forgery, violence against the person, robbery, and sexual assault. Using a quantile regression model, we find that there are statistically significant differences in the impact of explanatory variables on various crime rates for low and high crime areas. For example, not only does unemployment increase crime but it does so more in high crime areas. Higher detection rates reduce crime rates and the effect is stronger in low crime areas. There are also differences in distributional impact on crime rates for real earnings, income inequality and proportion of young people. Thus, our work points to the need to look beyond the usual mean effects of policing and socio-economic factors on crime and consider their impact on the entire distribution of crime rates. This will enable us to tailor policies that are particularly effective at different points in the crime distribution. Further, given the differential impact of earnings and unemployment across high and low crime areas this provides insight into why paradoxically recessions may have no impact on crime or even lower it. |
| Keywords: | Crime, Quantile Regression |
| JEL: | K42 C23 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:11-12&r=lab |
| By: | Basu, Parantap; Bhattarai, Keshab |
| Abstract: | A surprising cross country stylized fact is that a higher public spending on education tends to lower the long run per capita growth rate and schooling returns. This is contrary to the conventional wisdom that education is a major driver of growth. In this paper, we revisit this issue and try to understand these puzzling facts in terms of an endogenous growth model. Our cross country calibration of the growth model predicts that countries with a greater government involvement in education experience lower schooling efforts and lower growth. |
| Keywords: | endogenous growth; public spending on education |
| JEL: | E62 N10 |
| Date: | 2011–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31791&r=lab |
| By: | Maria De Paola; Vincenzo Scoppa (Dipartimento di Economia e Statistica, Università della Calabria) |
| Abstract: | Relying on a natural experiment consisting in 130 competitions for promotion to associate and full professor in the Italian University, we analyze whether gender discrimination is affected by the gender of evaluators. Taking advantage of the random assignment of evaluators to each competition, we examine the probability of success of each candidate in relation to the committee gender composition, controlling for candidates’ scientific productivity and a number of individual characteristics. We find that female candidates are less likely to be promoted when the committee is composed exclusively by males, while the gender gap disappears when the candidates are evaluated by a mixed sex committee. Results are qualitatively similar across fields and type of competitions. The analysis of candidates’ decisions to withdraw from competition highlights that gender differences in preferences for competition play only a minor role in explaining gender discrimination. It also emerges that withdrawal decisions are not affected by the committee gender composition and therefore the gender discrimination is not related to self-fulfilling expectations. |
| Keywords: | Gender Discrimination, Evaluators’ Gender, Affirmative Actions, Academic Promotion |
| JEL: | D72 D78 J45 J71 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201106&r=lab |
| By: | Domenico Buccella |
| Abstract: | This paper investigates the coordination of bargaining activities among labor unions in a Multinational Enterprise (MNE) with plants in different countries. Making use of a threestage game where the parties sequentially decide whether o coordinate negotiations, it derives the bargaining regimes arising as sub-game perfect equilibria. In presence of workers perfect substitutes in production and symmetry in the plants’ efficiency, it is shown that unions’ transaction costs may attenuate the conflict of interests among the parties as regards the level of coordination at which negotiations should take place. |
| Keywords: | bargaining, Multinational Enterprises, labor unions |
| JEL: | C78 F23 J51 D60 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2011:i:061&r=lab |
| By: | Laporte, Christine; Schellenberg, Grant |
| Abstract: | In this study, the income management strategies of Canadian couples are examined using data from the 2007 General Social Survey. The extent to which "older" couples, in which at least one spouse or partner is aged 45 or older, employ an allocative, pooled, or separate strategy is explored. Results show that the income management strategies used by these couples are correlated with relationship characteristics, such as common-law status, duration of relationship, and the presence of children. As well, the likelihood of using a separate approach is positively correlated with levels of educational attainment and with the amount of income received by wives or female partners. |
| Keywords: | Labour, Income, pensions, spending and wealth, Seniors, Wages, salaries and other earnings, Household, family and personal income, Income, pensions and wealth |
| Date: | 2011–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3e:2011335e&r=lab |
| By: | Veerle Miranda |
| Abstract: | Household production constitutes an important aspect of economic activity and ignoring it may lead to incorrect inferences about levels and changes in well-being. This paper sheds light on the importance of unpaid work by making use of detailed time-use surveys for 25 OECD member countries and 3 emerging economies. The calculations suggest that between one-third and half of all valuable economic activity in the countries under consideration is not accounted for in the traditional measures of well-being, such as GDP per capita. In all countries, women do more of such work than men, although to some degree balanced – by an amount varying across countries – by the fact that they do less market work. While unpaid work – and especially the gender division of unpaid work – is to some extent related to a country’s development level, country cross-sectional data suggest that demographic factors and public policies tend to exercise a much larger impact. The regular collection of time-use data can thus be of tremendous value for government agencies to monitor and design public policies, and give a more balanced view of well-being across different societies.<BR>La production des ménages constitue un aspect important de l’activité économique et sa non prise en compte risquerait d’aboutir à des conclusions erronées concernant les niveaux de bien-être et leurs variations. Ce document met en lumière l’importance du travail non rémunéré en utilisant des enquêtes détaillées sur l’utilisation du temps dans 25 pays membres de l’OCDE et 3 économies émergentes. Les calculs montrent qu’une part comprise entre le tiers et la moitié de la totalité de l’activité économique utile dans les pays examinés n’est pas prise en compte dans les indicateurs traditionnels du bien-être tels que le PIB par tête. Dans tous les pays, les femmes effectuent davantage de travaux de cette nature que les hommes, bien que ce fait soit compensé dans une certaine mesure – dans des proportions qui varient selon les pays – par le fait qu’elles offrent moins de services marchands. Bien que les travaux non rémunérés – et plus particulièrement la répartition de ces travaux entre les deux sexes – soient liés dans une certaine mesure au niveau de développement, des données transversales portant sur les différents pays montrent que les facteurs démographiques et les politiques publiques ont en général une incidence beaucoup plus importante. La collecte périodique de données concernant l’utilisation du temps peut donc présenter un intérêt considérable pour les organismes publics en leur permettant d’assurer le suivi et la conception des politiques publiques et en donnant une image plus équilibrée du bien-être dans les différentes sociétés. |
| JEL: | D13 D63 J13 J16 J22 |
| Date: | 2011–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:116-en&r=lab |
| By: | Mirjam van Praag (University of Amsterdam); Andre van Stel (EIM Business and Policy Research, Zoetermeer) |
| Abstract: | Policy in developed countries is often based on the assumption that higher business ownership rates induce economic value. Recent microeconomic empirical evidence casts doubts on the validity of this assumption or, at least, leads to a more nuanced view: Especially the top performing business owners are responsible for the value creation of business owners. Other labor market participants would contribute more to economic value creation as an employee than a business owner. The implied existence of an 'optimal' business ownership rate would thus replace the dictum of 'the more business owners, the merrier'. We attempt to establish whether there is such an optimal level, while investigating the role of tertiary education. Two findings stand out. First, by estimating extended versions of traditional Cobb Douglas production functions on a sample of 19 OECD countries over the period 1981-2006, we find indeed robust evidence of an optimal business ownership rate (at around 12.5%, on average). Second, the relation between business ownership and macroeconomic productivity is steeper for countries with higher participation rates in tertiary education. Thus, the optimal business ownership rate tends to decrease with tertiary education levels. This is consistent with microeconomic theory and evidence showing that entrepreneurs with superior levels of human capital run larger firms. |
| Keywords: | entrepreneurship; business ownership; human capital; (returns to) education; cross-country comparison; production function |
| JEL: | E23 J24 L26 O40 O57 |
| Date: | 2011–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110067&r=lab |
| By: | Cray, Adam; Nguyen, Tram; Pranka, Carol; Schildt, Christine; Scheu, Julie; Rincon Whitcomb, Erika |
| Keywords: | Public Affairs, Public Policy and Public Administration |
| Date: | 2011–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:2068520&r=lab |
| By: | Holzmann, Robert; Koettl, Johannes |
| Abstract: | Portability of social benefits across professions and countries is an increasing concern for individuals and policy makers. Lacking or incomplete transfers of acquired social rights are feared to negatively impact individual labor market decisions as well as capacity to address social risks with consequences for economic and social outcomes. The paper gives a fresh and provocative look on the international perspective of the topic that has so far been dominated by social policy lawyers working within the framework of bilateral agreements; the input by economists has been very limited. It offers an analytical framework for portability analysis that suggests separating the risk pooling, (implicit or actual) pre-funding and redistributive elements in the benefit designand explores the proposed alternative approach for pensions and health care benefits. This promising approach may serve both as a substitute and complement to bi- and multilateral agreements. |
| Keywords: | Gender and Law,Health Monitoring&Evaluation,Population Policies,Pensions&Retirement Systems,Debt Markets |
| Date: | 2011–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:hdnspu:62725&r=lab |
| By: | Andrea Bassanini (OECD); Giorgio Brunello (University of Padova) |
| Abstract: | We study the impact of regulatory barriers to entry on workplace training. We develop a model of training in imperfectly competitive product and labour markets. The model indicates that there are two contrasting effects of deregulation on training. As stressed in the literature, with a given number of firms, deregulation reduces the size of rents per unit of output that firms can reap by training their employees. Yet, the number of firms increases following deregulation, thereby raising output and profit gains from training and improving investment incentives. The latter effect prevails. In line with the predictions of the theoretical model, we find that the substantial deregulation in the 1990s of heavily regulated European industries (energy, transport and communication) increased training incidence. |
| Keywords: | training, product market competition, regulatory reform, Europe. |
| JEL: | J24 L11 O43 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0137&r=lab |
| By: | Laporte, Christine; Schellenberg, Grant |
| Abstract: | Dans la présente étude, on examine les stratégies de gestion du revenu des couples canadiens dont au moins un des conjoints ou partenaires est âgé de 45 ans et plus à l'aide des données de l'Enquête sociale générale de 2007. On tâche de déterminer dans quelle mesure les couples optent pour l'allocation, la mise en commun ou la séparation des revenus. Les résultats révèlent que les stratégies de gestion du revenu adoptées par les couples sont liées aux caractéristiques de la relation, dont l'union libre, la durée de la relation et la présence d'enfants. En outre, la probabilité de séparer les revenus est liée positivement au niveau de scolarité et au montant du revenu de la femme. |
| Keywords: | Travail, Revenu, pensions, dépenses et richesse, Aînés, Salaires, traitements et autres gains, Revenu du ménage, revenu familial et personnel, Revenu, pension et patrimoine |
| Date: | 2011–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3f:2011335f&r=lab |
| By: | Awan, Masood Sarwar; Iqbal, Nasir; Muhammad , Waqas |
| Abstract: | The positive relationship between human capital and income/wages has been supported by empirical research. Millennium Development Goals (MDGs) and the Poverty Reduction Strategy Paper (PRSP) enormously emphasize on human capital for curbing poverty. The economic development in East Asian countries is also linked with investment in education for the development of human capital. This study is designed to investigate the relationship of different levels of education and experience upon urban poverty at medium sized city in Pakistan such as Sargodha. A survey-based analysis was carried out on a sample of 330 households. Poverty status of the individual is defined by using adjusted official poverty line. Results show that education and experience is negatively related with the poverty status of individuals and this fact sustains even in separate gender estimates as well. This implies education of poor is necessary in breaking the vicious circle of poverty. Combined effort by public, private, community participation and NGO’s with special focus on elementary (Primary and middle) education is suggested for reducing poverty by increasing the productivity of the poor through education. |
| Keywords: | Human Capital; Urban Poverty; Sargodha; Pakistan |
| JEL: | E24 I3 J24 I32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31829&r=lab |