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on Labour Economics |
| By: | Glocker, Daniela; Steiner, Viktor |
| Abstract: | Incentives to invest in higher education are affected by both the direct wage effect of human capital investments and the indirect wage effect resulting from lower unemployment risks and shorter spells in unemployment associated with higher educated. We analyse the returns to education in Austria, Germany, Italy, Sweden and the United Kingdom, countries which differ significantly regarding both their education systems and labour market structure. We estimate augmented Mincerian wage equations accounting for the effects of unemployment on individual wages using EU-SILC data. Across countries we find a high variation of the effect of education on unemployment duration. Overall, the returns to education are estimated to be the highest in the UK, and the lowest for Sweden. A wage decrease due to time spent in unemployment results in a decline in the hourly wages in Austria, Germany and Italy. -- |
| Keywords: | Returns to education,unemployment,EU-SILC |
| JEL: | I21 J31 H42 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201115&r=lab |
| By: | Schöb, Ronnie; Thum, Marcel |
| Abstract: | Individual labour productivities are often unobservable for firms when hiring new workers. Job protection may prevent firms ex post from using information about labour productivities. We show that a binding minimum wage introduced in the presence of job protection will lead to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and full information. -- |
| Keywords: | Minimum wages,unemployment,hidden information,labour market regulation |
| JEL: | J2 J3 H5 L5 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201114&r=lab |
| By: | Salma Ahmed |
| Abstract: | The paper examines whether there is any trade-off between child labour hours and child schooling outcomes. By drawing on Bangladesh National Child Labour Survey data, we find that children’s work, even in limited amounts, does adversely affect child human capital. This is reflected in reduced school attendance and age-adjusted school attendance rates. We find that parents do not have identical preferences towards boys’ and girls’ schooling decisions. While both, educated mother and father shifts the trade-off towards girls’ schooling as opposed to market work, the differential impact of mother’s education on girls is significantly larger. These conclusions persist even after allowing for sample selection into child’s work. Our results intensify the call for better enforcement of compulsory schooling for children. |
| Keywords: | Child labour, education, Bangladesh |
| JEL: | J13 J22 J24 O12 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2011-21&r=lab |
| By: | Salma Ahmed; Pushkar Maitra |
| Abstract: | This paper decomposes the gender wage gap along the entire wage distribution into an endowment effect and a discrimination effect, taking into account possible selection into full-time employment. Applying a new decomposition approach to the Bangladesh Labour Force Survey (LFS) data we find that women are paid less than men every where on the wage distribution and the gap is higher at the lower end of the distribution. Discrimination against women is the primary determinant of the wage gap. We also find that the gap has widened over the period 1999 - 2005. Our results intensify the call for better enforcement of gender based affirmative action policies. |
| Keywords: | Gender wage Gap, Discrimination Effect, Selection, Unconditional Quantile Regression, Bangladesh |
| JEL: | C21 J16 J24 J31 J71 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2011-20&r=lab |
| By: | Bárcena-Martín, Elena; Budría, Santiago; Moro-Egido, Ana I. |
| Abstract: | This paper uses comparable international data to examine the extent and wage effects of skill mismatches among European university graduates. The results show that the mismatched earn on average 11.7% less than their well-matched counterparts. This effect, however, cannot be regarded as constant across the conditional earnings distribution: workers with lower unobserved earnings capacity tend to be exposed to greater wage loses when they end up in mismatched jobs. |
| Keywords: | skill mismatch; pay-penalty; inequality |
| JEL: | C29 J31 I21 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33673&r=lab |
| By: | Adermon, Adrian (Department of Economics); Gustavsson, Magnus (Department of Economics) |
| Abstract: | This paper investigates the connection between the Swedish wage profile of net job creation and Autor, Levy, and Murnane’s (2003) proposed substitutability between routine tasks and technology. We first show that between 1975 and 2005, Sweden exhibited a pattern of job polarization with expansions of the highest and lowest paid jobs compared to middle-wage jobs. We then use cross-sectional and longitudinal analyses of job-specific employment to map out the importance of routine versus nonroutine tasks for these changes. Results are consistent with substitutability between routine tasks and technology as an important explanation for the observed job polarization during the 1990s and 2000s, but not during the 1970s and 1980s. In particular, the overrepresentation of routine tasks in middle-wage jobs can potentially explain 44 percent of the growth of low-wage jobs relative to middle-wage jobs after 1990 but largely lacks explanatory power in earlier years. |
| Keywords: | Inequality; Job Mobility; Skill Demand; Skill-Biased Technological Change |
| JEL: | E24 J21 J23 J62 O33 |
| Date: | 2011–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uunewp:2011_015&r=lab |
| By: | Maria E. Canon |
| Abstract: | Do parents alter their investment in their child’s human capital in response to changes in school inputs? If they do, then ignoring this effect will bias the estimates of school and parental inputs in educational production functions. This paper tries to answer this question by studying out-of-school suspensions and their effect on parental involvement in children’s education. The use of out-of- school suspensions is the novelty of this paper. Out-of-school suspensions are chosen by the teacher or the principal of the school and not by parents, but they are a consequence of student misbehavior. To account for the nature of these out-of-school suspensions, they are instrumented with measures of “principal’s preference toward discipline.” The estimates show that, without controlling for selection, the level of parental involvement is negatively correlated with the number of out-of-school suspensions. Once selection is accounted for, the effect disappears—that is, out-of-school suspensions do not affect parental involvement in children’s education. |
| Keywords: | Education ; School choice |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2011-022&r=lab |
| By: | Francesco D'Amuri (Bank of Italy and ISER, University of Essex); Giovanni Peri (University of California, Davis and NBER) |
| Abstract: | In this paper we analyze the effect of immigrants on natives' job specialization in Western Europe. We test whether the inflow of immigrants changes employment rates or the chosen occupation of natives with similar education and age. We find no evidence of the first and strong evidence of the second: immigrants take more manual-routine type of occupations and push natives towards more abstract-complex jobs, for a given set of observable skills. We also find some evidence that this occupation reallocation is larger in countries with more flexible labor laws. As abstract-complex tasks pay a premium over manual-routine ones, we can evaluate the positive effect of such reallocation on the wages of native workers. Accounting for the total change in Complex/Non Complex task supply from natives and immigrants we find that immigration does not change much the relative compensation of the two types of tasks but it promotes the specialization of natives into the first type. |
| Keywords: | immigration, task specialization, European labor markets |
| JEL: | J24 J31 J61 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1026&r=lab |
| By: | Christian Dustmann (University College London); Albrecht Glitz (Universitat Pompeu Fabra and Barcelona GSE); Uta Schönberg (University College London and Institute for Employment Research (IAB)) |
| Abstract: | This paper develops a model and derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential job market candidates that they otherwise would not have. Using unique matched employeremployee data that cover the entire workforce in one large metropolitan labor market over a 20 year period, we find strong support for the predictions of our model. We first show that firms are more likely to hire minority workers from a particular group if the existing share of workers from that group employed in the firm is higher. We then provide evidence that workers earn higher wages, and are less likely to leave their firms, if they were hired by a firm with a larger share of minority workers from their own group and are therefore more likely to have obtained the job through a referral. The effects are particularly strong at the beginning of the employment relationship and decline with tenure in the firm. These findings have important implications in suggesting that job search networks help to reduce informational deficiencies in the labor market and lead to productivity gains for workers and firms. |
| Keywords: | Networks, Referrals, Uncertainty |
| JEL: | J61 J63 J31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1114&r=lab |
| By: | Roland G. Fryer, Jr; Devah Pager; Jörg L. Spenkuch |
| Abstract: | The extent to which discrimination can explain racial wage gaps is one of the most divisive subjects in the social sciences. Using a newly available dataset, this paper develops a simple empirical test which, under plausible conditions, provides a lower bound on the extent of discrimination in the labor market. Taken at face value, our estimates imply that differential treatment accounts for at least one third of the black-white wage gap. We argue that the patterns in our data are consistent with a search-matching model in which employers statistically discriminate on the basis of race when hiring unemployed workers, but learn about their marginal product over time. However, we cannot rule out other forms of discrimination. |
| JEL: | J01 J15 J71 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17462&r=lab |
| By: | Rita Almeida; Pedro Carneiro (Institute for Fiscal Studies and University College London) |
| Abstract: | <p>Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. We show that, in locations with frequent inspections workers pay for mandated benefits by receiving lower wages. Wage rigidity prevents downward adjustment at the bottom of the wage distribution. As a result, lower paid formal sector jobs become attractive to some informal workers, inducing them to want to move to the formal sector.</p> |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:29/11&r=lab |
| By: | Stephan K. S. Kampelmann; François Rycx |
| Abstract: | This paper examines the relationship between institutions and the remuneration of different jobs by comparing the German and Belgian labour markets with respect to a typology of institutions (social representations, norms, conventions, legislation, and organisations). The observed institutional differences between the two countries lead to the hypotheses of (I) higher overall pay inequality in Germany; (II) higher pay inequalities between employees and workers in Belgium; and (III) higher (lower) impact of educational credentials (work-post tenure) on earnings in Germany. We provide survey-based empirical evidence supporting hypotheses I and III, but find no evidence for hypothesis II. These results underline the importance of institutional details: although Germany and Belgium belong to the same "variety of capitalism", we provide evidence that small institutional disparities within Continental-European capitalism account for distinct structures of pay. |
| Keywords: | Labour market institutions; wage inequality; rules; collective bargaining. |
| JEL: | J31 J51 J52 J53 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/98284&r=lab |
| By: | Paulo Aguiar do Monte; Hilton Martins de Brito Ramalho; Ignácio Tavares de Araújo Júnior |
| Abstract: | This paper analyses the relationship between unemployment and its respective duration on subsequent salary. Despite of being a topic of intense debate in the labour market literature, there is little empirical evidence to support this perspective in the Brazilian labour market. Drawing on data from the Monthly Employment Survey (2008, 2009) and following the methodology proposed by Tunali (1986), plus an analysis of wage differential, the findings go in the same direction of earlier studies (e.g. Keltzer, 1998; Burda and Mertens, 2001; Arulampalam 2001; Arranz et al., 2010) by highlighting that unemployment duration generates a cost to employees represented in a subsequent wage loss. In other words, it seems that workers who have recently experienced unemployment spell have disadvantages in terms of wages compared to those who remained employed throughout the period under inquiry. |
| Keywords: | Unemployment,Wages,Bivariate Probit |
| JEL: | J20 J30 J64 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ppg:ppgewp:2&r=lab |
| By: | Zenou, Yves |
| Abstract: | The aim of this paper is to provide a new mechanism based on social interactions explaining why minority workers have worse labor-market outcomes than majority workers. Building on Granovetter's idea that weak ties are superior to strong ties for providing support in getting a job, we develop a social interaction model where workers can obtain a job through either their strong or weak ties. In this model, it is better to meet weak ties because a strong tie does not help in the state where all best friends are unemployed. But a weak tie can help leaving unemployment in any state because that person might be employed. So there is an asymmetry that is key to the model and that explains why some workers (blacks) may be stuck in poverty traps having little contact with weak ties (whites) that can help them escape unemployment. |
| Keywords: | labor market; social networks; Weak ties |
| JEL: | A14 J15 Z13 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8582&r=lab |
| By: | Shigeru Fujita |
| Abstract: | The purpose of this paper is to identify possible sources of the secular decline in the aggregate job separation rate over the last three decades. The author first shows that aging of the labor force alone cannot account for the entire decline. To explore other sources, he uses a simple labor matching model with two types of workers, experienced and inexperienced, where the former type faces a risk of skill obsolescence during unemployment. When the skill depreciation occurs, the worker is required to restart his career and thus suffers a drop in earnings. The author shows that a higher skill depreciation risk results in a lower aggregate separation rate and a smaller earnings loss. The key mechanisms are that the experienced workers accept lower wages in exchange for keeping the job and that the reluctance to separate from the job produces a larger mass of low-quality matches. He also presents empirical evidence consistent with these predictions. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:11-44&r=lab |
| By: | Alarudeen Aminu |
| Abstract: | The study investigated the impact Nigeria’s government wage review of 1998 had on the differential in pay for public and private sector workers of the same educational qualifications and ages. Empirical analysis based on the Mincerian human capital model was carried out for urban male employees only (as they constitute a homogeneous group) in the public and private sectors. The results obtained show that before the wage review of 1998, public sector workers suffered a pay disadvantage of 6.78% while about one year after the review, public sector workers enjoyed a premium of 35.07%. In the absence of any wage reduction in the private sector, this result suggests that the implementation of the 1998 wage review succeeded in making public sector workers better remunerated than their private sector counterparts and it can be concluded that the wage increase in the public sector achieved its disguised goal of redressing the age-long poor pay in the sector. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_223&r=lab |
| By: | McGuinness, Seamus; O'Connell, Philip J.; Kelly, Elish |
| Abstract: | In the extensive literature on the employment impact of public-sponsored training programmes for the unemployed, insufficient attention has been paid to the differential impact of different types of programmes and training duration. This paper uses a unique dataset, which tracks the labour market position of a cohort of unemployment benefit claimants for almost two years, to evaluate the impact of a range of government-sponsored training courses in Ireland. Overall, we found that those who participated in training were less likely to be unemployed at the end of the two-year study period. However, the average effect of training varied by the type and duration of training received. In general, we found strong positive effects for job-search skills training and medium-to high-level skills courses, a more modest positive effect for general vocational skills programmes (which are not strongly linked to demand in the labour market) and less consistent effects with respect to low-level skills training. We also found that training episodes with lower duration had a more positive impact, with the exception of high-level skills training programmes where longer training durations appear more effective. The results suggest that, in the Irish context, there are potentially substantial benefits to re-orientating unemployment training provision away from standard classroom vocational training towards the medium to high-level skill end of the market and demonstrate that, in most cases, training durations can be reduced without lowering the effectiveness of the interventions. |
| Keywords: | employment/Ireland/labour market/unemployment/skills/vocational training |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp410&r=lab |
| By: | LAURENT, THIERRY; MIHOUBI, FERHAT |
| Abstract: | This article is the first study to present an econometric evaluation of wage discrimination based on sexual orientation in the French labor market. Having identified same-sex couples using the French Employment Survey, we estimate the wage gap related to sexual orientation in the private and public sectors, in order to analyze whether or not lesbians and gays suffer a wage penalty. The results obtained show the existence of a wage penalty for homosexual male workers, as compared with their heterosexual counterparts, in both the private and public sectors; the magnitude of this discrimination varies from about -6.5% in the private sector, to -5.5% in the public sector. In the private sector, the wage penalty suffered by gay employees is higher for skilled workers than for the unskilled, and – in both sectors – the wage penalty is higher for older workers than for younger ones. Discrimination is also lower in Paris than in the rest of France. As with many other countries, we do not find any evidence of the existence of a wage discrimination against lesbians. |
| Keywords: | Wage discrimination; Sexual orientation; Gay and Lesbians |
| JEL: | J7 |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33723&r=lab |
| By: | M. Grazia Pittau (Sapienza Universita' di Roma); Shlomo Yitzhaki (The Hebrew University of Jerusalem and Central Bureau of Statistics); Roberto Zelli (Sapienza Universita' di Roma) |
| Abstract: | In this paper we illustrate the potential use of an old/new methodology which combines the use of concentration curves in order to investigate the components that make up a regression coefficient. The illustration is based on examining gender differences in the effect of age on labor market participation in Italy. Women participation rate is substantially lower than men, but their age profile is similar. The most striking difference is in terms of hours of work: while Italian men increase their work effort until the age of 35, Italian women reduce it until the age of 39. These results do not differ substantially when we split the working population into employed and self-employed. Earnings increase with age for both men and women, however the local regression coefficient is negative for Italian women in the age of 38–42. This evidence is accentuated when we focus on the employees. |
| Keywords: | Gini, OLS, Concentration curves, Regression decomposition, Italian labor market. |
| JEL: | C30 J16 J21 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:sas:wpaper:20113&r=lab |
| By: | Konstantin M. Wacker (Georg-August-University Göttingen); Krishna Chaitanya Vadlamannati (University of Heidelberg) |
| Abstract: | This paper investigates the effects of multinational corporations on labor standards. We argue that the previous literature has failed to distinguish the different motives that encourage firms to become multinational. Therefore, we build a stylized model of segmented labor markets with equilibrium unemployment where parts of the labor force are willing to accept reductions in their labor standards to attract job-creating horizontal foreign direct investment. By disentangling US FDI data for 34 advanced host countries throughout the period 1997 to 2002 into vertically and horizontally motivated FDI, we show that this disaggregation provides much more significant results. Concretely, we find a statistically significant and economically considerable negative impact of horizontal US FDI on labor right practices in industrialized host countries by using a static OLS model and qualitatively similar results with dynamic GMM estimation. Our results do not imply that this effect leads to a decrease in welfare in the host economy but that in the welfare optimization process employment, income and job-quality serve as substitutes with an elasticity positively depending on equilibrium unemployment. |
| Keywords: | Multinationals; FDI; Labor Rights; Labor Markets |
| JEL: | F2 J81 C23 M14 |
| Date: | 2011–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:098&r=lab |
| By: | Engelmann, Sabine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "The aim of this paper is to formalise a two-country model of trade liberalisation and technical change with heterogenous firms and search-and-matching frictions in the labour market. By considering different sectors and factors of production we allow for comparative advantages and study the trade and technology effects within and between sectors on wages and employment of skilled and low-skilled workers. Technical change together with inter-sectoral trade has distributional consequences across the labour force, favouring the skilled against the low-skilled workers. Intra-sectoral trade counteracts as it increases the demand for low-skilled workers, too. The overall effects on wages and employment of skilled and low-skilled workers depend on the extent of technical change, inter-sectoral trade and intra-sectoral trade." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Handel, technischer Fortschritt, ökonomische Theorie, Hochqualifizierte, Niedrigqualifizierte, Lohnelastizität, Beschäftigungseffekte |
| JEL: | F12 F16 J64 O33 |
| Date: | 2011–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201119&r=lab |
| By: | Christian Dustmann (CReAM, University College London); Albrecht Glitz (CReAM, Universitat Pompeu Fabra) |
| Abstract: | Sjaastad (1962) viewed migration in the same way as education: as an investment in the human agent. Migration and education are decisions that are indeed intertwined in many dimensions. Education and skill acquisition play an important role at many stages of an individual's migration. Differential returns to skills in origin- and destination country are a main driver of migration. The economic success of the immigrant in the destination country is to a large extent determined by her educational background, how transferable these skills are to the host country labour market, and how much she invests into further skills after arrival. The desire to acquire skills in the host country that have a high return in the country of origin may also be an important reason for a migration. From an intertemporal point of view, the possibility of a later migration may also affect educational decisions in the home country long before a migration is realised. In addition, the decisions of migrants regarding their own educational investment, and their expectations about future migration plans may also affect the educational attainment of their children. But migration and education are not only related for those who migrate or their descendants. Migrations of some individuals may have consequences for educational decisions of those who do not migrate, both in the home and in the host country. By easing credit constraints through remittances, migration of some may help others to go to school. By changing the skill base of the receiving country, migration may change incentives to invest in certain types of human capital. Migrants and their children may create externalities that influence educational outcomes of non-migrants in the destination country. This chapter will discuss some of the key areas that connect migration and education. |
| Keywords: | Migration, Education, Human Capital, Return Migration, Immigrant Selection, Second-generation |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1105&r=lab |
| By: | Mary Burke; Tim R. Sass |
| Abstract: | In this paper we analyze the impact of classroom peers' ability on individual student achievement with a unique longitudinal data set covering all Florida public school students in grades 3-10 over a five-year period. Unlike many data sets used to study peer effects in education, ours identifies each member of a student's classroom peer group in elementary, middle, and high school as well as the classroom teacher responsible for instruction. As a result, we can control for student fixed effects simultaneously with teacher fixed effects, thereby alleviating biases due to endogenous assignment of both peers and teachers, including some dynamic aspects of assignment. Our estimation strategy, which measures the influence on individual test scores of peers' fixed characteristics (including unobserved components), also alleviates potential bias due to measurement error in peer ability. Under linear-in-means specifications, estimated peer effects are small to nonexistent, but we find sizable and significant peer effects in nonlinear models. We find that peer effects depend on an individual student's own ability and on the relative ability level of peers, results suggesting that some degree of tracking by ability may raise aggregate achievement. Estimated peer effects tend to be smaller when teacher fixed effects are included than when they are omitted, a result that emphasizes the importance of controlling for teacher inputs. We also find that classroom peers exert a greater influence on individual achievement than the broader group of grade-level peers at the same school. |
| Keywords: | Achievement tests |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbpp:11-5&r=lab |
| By: | Bernt Bratsberg (Ragnar Frisch Centre for Economic Research); Oddbjørn Raaum (Ragnar Frisch Centre for Economic Research); Marianne Røed (Institute for Social Research); Pål Schøne (Institute for Social Research) |
| Abstract: | We estimate the direct partial wage effect for native workers of an immigrant-induced increase in labor supply, using longitudinal records drawn from Norwegian registers and the national skill cell approach of Borjas (2003). Our results show overall negative wage impacts for both men and women. Focusing on differential wage impacts by immigrant origin, we find that immigrant inflows from the neighboring Nordic countries have more negative wage effects than inflows from developing countries. The pattern is consistent with factor demand theory if natives and other Nordic citizens are close substitutes. We also find that impact estimates, particularly for inflows from nearby countries, are sensitive to accounting for selective native attrition and within-skill group variation in demand and supply conditions. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1030&r=lab |
| By: | Chan, Winnie<br/> Morissette, René<br/> Frenette, Marc |
| Abstract: | Over the last three decades, Canada has experienced three recessions: one that started during the early 1980s; a second that began during the early 1990s; and the most recent one, which led to employment declines starting in October 2008. For each recession, this study: a) examines which workers were laid-off; b) quantifies layoff rates; and c) assesses the proportion of workers that found a job shortly after being laid-off. The layoff concept used includes temporary layoffs as well as permanent layoffs. |
| Keywords: | Labour, Employment and unemployment |
| Date: | 2011–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3e:2011337e&r=lab |
| By: | Christopher Otrok (Department of Economics, University of Missouri-Columbia); Panayiotis M. Pourpourides |
| Abstract: | In this paper we investigate the cyclicality of real wages. The approach we take is to search for the largest possible common cyclical component in a statistical sense. This contrasts with the existing literature which uses observable variables to proxy for a common cycle. We do so by using a Bayesian dynamic latent factor model and longitudinal microdata. We find that the comovement of real wages can be related to a common factor that exhibits a significant but far from perfect correlation with the national unemployment rate. Our findings indicate that (i) the common factor explains, on average, no more than 9% of wage variation, (ii) the common factor accounts for 20% or less of the wage variability for 88% of the workers in the sample and (iii) roughly half of the wages move procyclically while half move countercyclically. These facts are inconsistent with claims of a strong systematic relationship between real wages and the business cycle. We show that these results are inconsistent with models of Walrasian labor markets typically used in DSGE models. We also confirm findings of previous studies in which skilled and unskilled wages exhibit roughly the same degree of cyclical variation. |
| Keywords: | Wages, Wage Di¤erentials, Business Cycles, Bayesian Analysis |
| JEL: | C11 C13 C22 C23 C81 C82 J31 |
| Date: | 2011–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:1116&r=lab |
| By: | Dreber, Anna (Institute for Financial Research (SIFR), Stockholm); von Essen, Emma (Dept. of Economics, Stockholm University); Ranehill, Eva (Stockholm School of Economics) |
| Abstract: | Education has important short and long run implications for individual outcomes. In this paper we explore the association between age at pubertal onset and educational outcomes in a sample of Swedish girls. Previous research suggests that girls that mature earlier perform worse in school compared to girls that mature later. To test if this is also true among Swedish girls, we investigate the association between pubertal development and grades, educational aspirations and educational choice. We also investigate whether changes in risk attitudes, time preferences and priorities concerning school versus friends mediate this potential correlation. We confirm that earlier maturing girls have lower grades and lower educational aspirations, but find that they make educational choices similar to those of later maturing girls. Furthermore, we do not find that these differences in grades and aspirations are mediated by risk attitudes, time preferences or priorities. |
| Keywords: | educational outcomes; puberty; pubertal timing; grades |
| JEL: | I00 J10 J16 |
| Date: | 2011–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2011_0026&r=lab |
| By: | McGuinness, Seamus; O'Connell, Philip J.; Kelly, Elish |
| Abstract: | This paper uses a high quality longitudinal dataset to assess the impact of an active labour market intervention consisting of referral for interview plus Job Search Assistance (JSA) with the public employment service in Ireland during a period when both job search monitoring and sanctions were virtually non-existent. The results indicate that, relative to a control group with no intervention, unemployed individuals that were exposed to the interview letter and participated in JSA were 16 per cent less likely to have exited to employment prior to 12 months. The negative effects of the intervention approximately doubled when those that received a referral letter but did not attend a JSA interview were removed from the data. The results held when tested against the underlying assumptions of the model, and the influences of both sample selection and unobserved heterogeneity bias. The negative treatment impact is attributed to individuals lowering their job search intensity on learning, through the JSA activation interview, of the lax nature of the activation process. The research, which is unusual in the international literature in allowing the assessment of the impact of job search assistance in the virtual absence of monitoring and sanctions, highlights the need for effective monitoring and sanctions as integral components of labour market activation programmes. |
| Keywords: | impacts/labour market/employment/Ireland/Individuals/data |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp409&r=lab |
| By: | Herbst, Mikolaj; Rok, Jakub |
| Abstract: | The transformation of Polish economy toward a free market system and related changes on the Polish labour market released the demand for higher education, held for decades at an artificially low level. The impressive increase in enrolment was possible because the Polish government allowed the private sector to establish higher education institutions. This paper demonstrates how the probability of enrolment in tertiary schools evolves for different social groups in Poland over the period of educational boom. It also investigates how the socio-economic status influences the choices between full-time and part-time studies (the latter being of relatively low quality), and the probability of admission to subsidized, free programs versus programs requiring tuition. Between 1994 and 2008 Poland has undoubtedly improved the participation of students with low socio-economic status in the university education. However, if we look at the change in the ratios of enrolment probabilities for different layers of the social strata, we find that the improvement refers to those with low family educational background and living in small settlements, but not to individuals suffering from the low income. Further investigation shows that the policy makers should focus not only on ensuring equal access to tertiary education for the whole social strata, but on allowing the unprivileged groups access to education of acceptable quality. |
| Keywords: | Higher education; equity; participation; transformation; Poland |
| JEL: | A22 D63 A23 H52 I22 |
| Date: | 2011–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33795&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:1103&r=lab |
| By: | Thomas K. Bauer; Michael Fertig; Matthias Vorell |
| Abstract: | Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment propects. The panel setup and richness of the data allows us to overcome some of the identifi cation problems which are present in this strand of literature. The empirical results indicate that there is a signifi cant negative impact of neighborhood unemployment on the individual employment probability. |
| Keywords: | Social interactions; unemployment; neighborhood characteristics |
| JEL: | J65 R23 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0285&r=lab |
| By: | Thomas A. Lubik |
| Abstract: | I specify a simple search and matching model of the labor market and estimate it on unemployment and vacancy data for Hong Kong over the period 2000-2010 using Bayesian methods. The model fits the data remarkably well. The estimation shows that the main driver of fluctuations in the labor market are productivity shocks, with cyclical movements in the separation rate playing only a subordinate role. The parameter estimates are broadly consistent with those found in the literature. In order to replicate the volatility of unemployment and vacancies the model estimates require a high replacement ratio and a low bargaining power for workers in addition to two extraneous sources of uncertainty. The estimates are robust to a relaxation of the prior information and small changes in the underlying model specification, which suggests that the data are informative and that the model is well specified. Overall, the Hong Kong labor market can be characterised by having a low degree of churning in normal times, but rapid firings and hirings in recessions and expansions. |
| Keywords: | Labor market ; Unemployment |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:11-02&r=lab |
| By: | René Böheim (Department of Economics, Johannes Kepler University Linz, Austria); Thomas Leoni (Österreichisches Institut für Wirtschaftsforschung (WIFO) (Austrian Institute of Economic Research)) |
| Abstract: | Sick workers in many countries receive sick pay during their illness- related absences from the workplace. In several countries, the social security system insures firms against their workers’ sickness absences. However, this insurance may create moral hazard problems for firms, leading to the inefficient monitoring of absences or to an underinvestment in their prevention. In the present paper, we investigate firms’ moral hazard problems in sickness absences by analyzing a legislative change that took place in Austria in 2000. In September 2000, an insurance fund that refunded firms for the costs of their blue-collar workers’ sickness absences was abolished (firms did not receive a similar refund for their white-collar workers’ sickness absences). Before that time, small firms were fully refunded for the wage costs of blue- collar workers’ sickness absences. Large firms, by contrast, were refunded only 70% of the wages paid to sick blue-collar workers. Using a difference-in-differences-in-differences approach, we estimate the causal impact of refunding firms for their workers’ sickness absences. Our results indicate that the incidences of blue-collar workers’ sicknesses dropped by approximately 8% and sickness absences were almost 11% shorter following the removal of the refund. Several robustness checks confirm these results. |
| Keywords: | absenteeism, moral hazard, sickness insurance |
| JEL: | J22 I38 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2011_13&r=lab |
| By: | Roberto Bande (University of Santiago and IDEGA); Marika Karanassou (Queen Mary, University of London and IZA) |
| Abstract: | On both theoretical and empirical grounds, this paper provides evidence that refutes the natural rate of unemployment (NRU) hypothesis as an explanation of the evolution of regional disparities in the unemployment rate. We first present our analytical framework, which follows the chain reaction theory (CRT) of unemployment and argues that (i) a system of interactive labour market equations, rather than a single-equation unemployment rate model, is better equipped to accommodate unemployment dynamics, and (ii) due to the interplay of frictions and growth in labour markets, the NRU ceases to be an attractor of the unemployment rate time path. We then provide evidence that the Spanish ecoomy is characterised by large and persistent disparities in the regional unemployment rates. Through standard kernel density tecnhiques, we demonstrate the existence of marked differences between two groups of high and low unemployment regions that remain stable in their composition through time. Finally, we review our empirical labour market model for each group of regions and evaluate the corresponding natural rates. Our findings confirm that the evolution of regional disparities cannot be attributed to disparities in the natural rates, given that these, although different, do not act as an attractor of unemployment. Thus, the NRUs offer little help in the formulation of labour market policies. |
| Keywords: | regional unemployment, disparities, kernel, natural rate, frictional growth |
| JEL: | R23 J64 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:edg:anecon:0043&r=lab |
| By: | Harminder Battu (Department of Economics and Centre for European Labour Market Research (CELMR)); Paul Seaman (Department of Economic Studies, University of Dundee); Yves Zenou (Stockholm University, IFN, and CREAM) |
| Abstract: | Using data from the UK Quarterly Labour Force Survey, this paper examines the job finding methods of different ethnic groups in the UK. Our empirical findings suggest that, though personal networks are a popular method of finding a job for the ethnic minorities, the foreign born and those who identify themselves as non-British, they are not necessarily the most effective either in terms of gaining employment or in terms of the level of job achieved. However, there are some important differences across ethnic groups with some groups losing out disproportionately from using personal networks. |
| Keywords: | Job search, networks, social capital, ethnic disadvantage |
| JEL: | J15 J64 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1028&r=lab |
| By: | Francesca Cornaglia; Naomi E. Feldman |
| Abstract: | The effect of marriage on productivity and, consequently, wages has been long debated in economics. A primary explanation for the impact of marriage on wages has been through its impact on productivity, however, there has been no direct evidence for this. In this paper, we aim to fill this gap by directly measuring the impact of marriage on productivity using a sample of professional baseball players from 1871 - 2007. Our results show that only lower ability men see an increase in productivity, though this result is sensitive to the empirical specification and weakly significant. In addition, despite the lack of any effect on productivity, high ability married players earn roughly 16 - 20 percent more than their single counterparts. We discuss possible reasons why employers may favor married men. |
| Keywords: | Productivity, wage gap, marriage, and baseball |
| JEL: | J31 J44 J70 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1081&r=lab |
| By: | David Neumark; Joanne Song |
| Abstract: | Supply-side Social Security reforms to increase employment and delay benefit claiming among older individuals may be frustrated by age discrimination. We test for policy complementarities between supply-side Social Security reforms and demand-side efforts to deter age discrimination, specifically studying whether stronger state-level age discrimination protections enhanced the impact of the increases in the Social Security Full Retirement Age (FRA) that occurred in the past decade. The evidence indicates that, for older individuals who were “caught” by the increase in the FRA, benefit claiming reductions and employment increases were sharper in states with stronger age discrimination protections. |
| JEL: | H55 J14 J71 J78 K31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17467&r=lab |
| By: | George J. Borjas; Jeffrey Grogger; Gordon H. Hanson |
| Abstract: | The wage impact of immigration depends crucially on the elasticity of substitution between similarly skilled immigrants and natives and the elasticity of substitution between high school dropouts and graduates. This paper revisits the estimation of these elasticities. The U.S. data indicate that equally skilled immigrants and natives are perfect substitutes. The value of the second elasticity depends on how one controls for changes in demand that have differentially affected high school dropouts and graduates. The groups are imperfect substitutes under standard trend assumptions, but even slight deviations from these assumptions can lead to an outright rejection of the CES framework. |
| JEL: | J61 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17461&r=lab |
| By: | Stephen B. DeLoach (Department of Economics, Elon University); Mark Kurt (Department of Economics, Elon University) |
| Abstract: | Discouraged and marginally attached workers have received increased attention from policy makers over the past several years. Theoretically, periods of recessions and high unemployment should directly influence individualÕs decisions whether or not to search for employment, creating more discouraged workers. Since 2003, there have been a number of large macroeconomic shocks (e.g. housing bubble, credit crunch, mass layoffs, etc.) which should affect job search intensity. To date, the relative magnitude of these shocks on the search intensity of the unemployed (but currently undiscouraged workers) has not been established in the literature. Using daily time use dairies from the American Time Use Survey 2003-2009 allow us to proxy search intensity directly by aggregating time spent in minutes on several job search activities: time spent sending out resumes, contacting employers, interviewing, reading ads on the internet and so forth. Results from Tobit estimation indicate the existence of significant negative wealth effects on search intensity through changes in the stock market and housing values that help explain the apparent acyclicality of search intensity observed in the data. |
| Keywords: | search intensity, macroeconomic shocks, discouraged workers, business cycles |
| JEL: | J2 J6 J1 E24 E32 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:elo:wpaper:2011-01&r=lab |
| By: | Pia Orrenius; Madeline Zavodny |
| Abstract: | Since the 1970s, the poverty rate has remained largely unchanged among Hispanics but has declined among non-Hispanic whites and blacks, particularly before the onset of the recent recession. The influx of large numbers of immigrants partially explains why poverty rates have not fallen over time among Hispanics> ; In 2009, Hispanics were more than twice as likely to be poor than non-Hispanic whites. Lower average English ability, low levels of educational attainment, part-time employment, the youthfulness of Hispanic household heads, and the 2007–09 recession are important factors that have pushed up the Hispanic poverty rate relative to non-Hispanic whites. In addition, income inequality is greater among Hispanics than among non- Hispanic whites, although lower than among non-Hispanic blacks. Income inequality is lower among foreign-born Hispanics than among Hispanic natives. |
| Keywords: | Immigrants ; Education ; Employment ; Income |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:1109&r=lab |
| By: | Cyrus Farsian |
| Abstract: | Composition bias in aggregate wages is often a scapegoat for the apparent unresponsiveness of wages over the cycle. Since Bils (1985) and in particular Solon et al. (1994), who find that that real wages are highly pro-cyclical a general consensus has emerged that the observed ‘mild’ cyclicality in real wages is due to composition effects which cause counter-cyclical biases because low wage jobs are the first to be destroyed during recessions (Pissarides, 2009). In this paper, it is argued that the results of Solon et al. (1994) and other papers using similar techniques cannot possibly disentangle the true effect of composition bias. This is because the assignment of fixed weights used to keep the composition of the work force constant is arbitrary and imposes a particular direction to the bias. Thus, rather than determining the bias it only serves to show the possible magnitude once having assumed the way the bias works. As in Blundell et al. (2003) we can unravel the bias into three interpretable parts. That is biases due to individual movement in and out of work, changes in the variation of hours worked and changes in the variance of wages over the cycle. The findings show that aggregate real wages become cyclically less responsive over the cycle and no evidence of ‘counter-cyclical’ composition bias. |
| Keywords: | Aggregate Real Wage Index; Endogenous Selection; Composition Bias; Wage Dispersion |
| JEL: | C34 E24 J31 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:ukc:ukcedp:1116&r=lab |
| By: | Julia Bredtmann; Carsten J. Crede; Sebastian Otten |
| Abstract: | This paper evaluates the eff ectiveness of the introduction of a Writing Center at a university. The center has the purpose to provide subject-specifi c courses that aim to improve students‘ abilities of scientifi c writing. In order to deal with presumed selfperceptional biases of students in feedback surveys, we use diff erent quantitative evaluation methods and compare the results to corresponding qualitative student surveys. Based on this evaluation, we present and discuss the validity of the approaches to evaluate educational programs. Although almost all students reported the writing courses to be helpful, we fi nd no signifi cant eff ect of course participation on students‘ grades. We attribute the diff erence in the results between quantitative methods and qualitative surveys to the inappropriateness of student course evaluations for assessing the eff ectiveness of educational measures. |
| Keywords: | Performance evaluation; educational programs; student evaluation; empirical methods |
| JEL: | I20 I21 C81 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0275&r=lab |
| By: | Damiano Fiorillo; Nunzia Nappo (-) |
| Abstract: | This paper investigates the determinants of job satisfaction in Italy with particular emphasis on social relations. Our econometric analysis is based on four waves (1993, 1995, 1998 and 2000) of the Multipurpose Household Survey conducted annually by the Italian Central Statistics Office. The results of ordered probit regressions and robustness tests show that volunteering and meetings with friends are significantly and positively correlated with job satisfaction, with religious participation playing the biggest role. Our findings also show that meetings with friends increase job satisfaction through self-perceived health. |
| Keywords: | Job satisfaction; Social relations; Social capital; Health; Statistical matching; Italy. |
| JEL: | C31 J28 Z1 |
| Date: | 2011–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:prt:dpaper:5_2011&r=lab |
| By: | Atamanov, Aziz (Maastricht Graduate School of Governance, Maastricht University); Berg, Marrit van den (Wageningen University, The Netherlands) |
| Abstract: | This paper addresses the issue of self-selection of individuals in international labour migration, non-agricultural and agricultural employment in Tajikistan and its link to earnings from these activities. Unlike most empirical studies, we could attribute selection bias on unobservable characteristics to the allocation of individuals to alternative employment sectors and analyse its impact on earnings abroad and at home. We have found positive selection in migration against local non-agricultural activities and positive selection in local non-agricultural activities against local agricultural activities. This indicates that the most capable individuals with regards to unobservable characteristics choose to migrate, while the somewhat less able choose non-agricultural activities, and individuals with the worst capabilities stay in poorly-paid agricultural activities. Controlling for self-selection, labour income returns to education of migrants and individuals in non-agricultural activities are slightly lower than those from Ordinary Least Squares (OLS). |
| Keywords: | international migration, self-selection, earnings, Tajikistan |
| JEL: | J24 J31 F22 O15 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2011047&r=lab |
| By: | Enrico Marelli (Department of Economics, Faculty of Economics, University of Brescia, Italy); Roberto Patuelli (Department of Economics, Faculty of Economics-Rimini, University of Bologna, Italy; The Rimini Centre for Economic Analysis (RCEA), Italy); Marcello Signorelli (Department of Economics, Finance and Statistics, Faculty of Political Sciences, University of Perugia, Italy) |
| Abstract: | In this paper we empirically assess the evolution for the EU regions of both employment and unemployment before and after the Global Crisis. After a review of the literature on the theories and key determinants of regional unemployment, we shall overview the main findings concerning the labour market impact of the Global Crisis. The empirical analysis will initially be carried out at the national level including all EU countries; subsequently, we shall focus on the EU regions (at the NUTS-2 level), in order to detect possible changes in the dispersion of regional unemployment rates after the crisis. Our econometric investigations aim to assess the effect, on labour market performance, of previous developments in regional labour markets time series, as well as the importance of structural characteristics of the labour markets, in terms of the sectoral specialization of the regional economies. In fact, the local industry mix may have played a crucial role in shaping labour market performance in response to the crisis. In addition, we consider further characteristics of the regional labour markets, by including indicators of the level of precarization of labour and of the share of long-term unemployed, as indicators of the efficiency of the local labour markets. From a methodological viewpoint, we exploit eigenvector decomposition-based spatial filtering techniques, which allow us to greatly reduce unobserved variable bias – a significant problem in cross-sectional models – by including indicators of latent unobserved spatial patterns. Finally, we render a geographical description of the heterogeneity influence of past labour market performance over the crisis period, showing that the past performance has a differentiated impact on recent labour market developments. |
| Keywords: | crisis, employment, unemployment, European Union, NUTS-2, spatial filtering, sectoral composition, spatially heterogeneous parameters |
| JEL: | C21 R12 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:39_11&r=lab |
| By: | Christian Dustmann (University College London and CReAM); Tommaso Frattini (Università degli Studi di Milano, CReAM, IZA and LdA); Gianandrea Lanzara (University College London and CReAM) |
| Abstract: | This paper investigates the educational achievements of second generation immigrants in several OECD countries in a comparative perspective. We first show that the educational achievement (measured as test scores in PISA achievement tests) of children of immigrants is quite heterogeneous across countries, and strongly related to achievements of the parent generation. The disadvantage considerably reduces, and even disappears for some countries, once we condition on parental background characteristics. Second, we provide novel analysis of cross-country comparisons of test scores of children from the same country of origin, and compare (conditional) achievement scores in home and host countries. The focus is on Turkish immigrants, whom we observe in several destination countries. We investigate both mathematics and reading test scores, and show that the results vary according to the type of skills tested. For mathematics, in most countries and even if the test scores achievement of the children of Turkish immigrants is lower than that of their native peers, it is still higher than that of children of their cohort in the home country - conditional and unconditional on parental background characteristics. The analysis suggests that higher school quality relative to that in the home country is important to explain immigrant children's educational advantage. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1116&r=lab |
| By: | Jessica W. Reyes |
| Abstract: | It is now widely accepted that childhood exposure to even low levels of lead can adversely affect neurodevelopment, behavior, and cognitive performance. Using individual-level data on childhood lead levels and test scores in Massachusetts, this paper investigates the link between lead levels in early childhood in the 1990s and student test scores in elementary school in the 2000s. Elevated levels of blood lead in early childhood are shown to adversely impact standardized test performance, even when controlling for community and school characteristics. Accordingly, public health policy that reduced childhood lead levels in the 1990s was responsible for modest but statistically significant improvements in test performance in the 2000s, with particular benefits for children in low-income communities. |
| Keywords: | Achievement tests |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbcw:11-3&r=lab |
| By: | Olanrewaju Olaniyan |
| Abstract: | This study explores the determinants of child schooling in Nigeria and takes current enrolment and delayed entry into schools as measures of schooling outcome. The study utilized reduced form relationships for male and female children within urban and rural households. Using data from the 1999 Multiple Indicator Cluster Survey (MICS) of Nigeria, the study found that socioeconomic backgrounds of children are significant determinants of schooling with education of parents being the most important determinant. Educated parents desire more schooling for their children. Our decomposition analysis revealed that the way a household treats boys and girls in urban areas contracts the gender gap in enrolment, while it widens the gap in rural areas. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_217&r=lab |
| By: | Olivier LHARIDON, University of Rennes 1 - CREM-CNRS; Franck MALHERBET, Ecole Polytechnique; Sébastien PEREZ-DUARTE, BCE. |
| Abstract: | In this article, we use a stylized model of the labor market to investigate the effects of three alternative and well-known bargaining solutions. We apply the Nash, the Egalitarian and the Kalai-Smorodinsky bargaining solutions in the small firm’s matching model of unemployment. We first show that the Egalitarian and the Kalai-Smorodinsky solutions are easily implementable within search-matching economies. Second, we show that the differences between the three solution are weaker than expected. This contrasts with some of the main results obtained by the recent literature. |
| Keywords: | appariement, négociations, jeux coopératifs. |
| JEL: | C71 C78 J20 J60 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201116&r=lab |
| By: | Mohammad Alauddinh (School of Economics, The University of Queensland); Adrian Ashman (School of Education, The University of Queensland) |
| Abstract: | The diversity of students in higher education in Australia and elsewhere has changed significantly over the past two decades. The existing literature has provided limited clarity in terms of their effects on teaching and learning or on the way in which social and cultural changes shape what university students think about the teaching and learning process. Employing a large data set of survey responses from a leading Australian university, this paper provides an analysis of student perceptions of the teaching and learning process, in regard to their study philosophy, beliefs, and attitudes. Survey data were analysed in two stages. First, factor analysis was used to explore themes (or dimensions) within the survey. Multivariate analysis of variance was then undertaken using students’ factor scores as dependent variables, and age, sex, ethnicity, study discipline, study level, academic performance, and sex-ethnicity interaction as grouping variables. Three factors (Deep Learning, Expediency, and Responsibility) appeared to reflect students’ study philosophy, beliefs, and attitude toward teaching and learning. Students’ response on the three factors varied according to age, sex, ethnicity, study discipline, and academic performance, and sex-ethnicity effects. Students in business-related disciplines appeared to display greater expediency than peers in other disciplines, treating university education like any other commodity. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:437&r=lab |
| By: | Larry Howard (California State University, Fullerton); Nishith Prakash (Cornell University, CReAM, and IZA) |
| Abstract: | This article examines the effects of school lunch subsidies provided through the meanstested component of the National School Lunch Program on the dietary patterns of children age 10- to 13 yr in the USA. Analyzing data on 5,140 public school children in 5th grade during spring 2004, we find significant increases in the number of servings of fruit, green salad, carrots, other vegetables, and 100 percent fruit juice consumed in one week for subsidized children relative to unsubsidized children. The effects on fruit and other vegetable consumption are stronger among the children receiving a full subsidy, as opposed to only a partial subsidy, and indicate the size of the subsidy is an important policy lever underlying the program's effectiveness. Overall, the findings provide the strongest empirical evidence to date that the means-tested school lunch subsidies increase children's consumption over a time period longer than one school day. |
| Keywords: | National School Lunch Program, Dietary Patterns, Means-Tested Subsidies |
| JEL: | H51 I12 I38 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1101&r=lab |
| By: | Waka Cheung; Yew-Kwang Ng |
| Abstract: | According to the principle of comparative advantage, the gender division of labor is utility enhancing during marriage. However, in the long term it decreases the earning power of the party who specializes in housework. Once the marriage is dissolved she/he will be the losing party and hence should be compensated by the other party, who specializes in paid work which usually involves higher degree in the accumulation of human capital. As an effective means of compensation, it is shown formally that alimony may promote the gender division of labor and improve Pareto efficiency. The rule of remarriage termination of alimony is doubly inefficient by reducing gender division of labor and by discouraging efficient remarriages. |
| Keywords: | Gender; division of labor; alimony; spousal support; marriage; specialization. |
| JEL: | D13 C7 D8 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2011-17&r=lab |
| By: | Ben E. Aigbokhan |
| Abstract: | The Nigerian labour market, like other sectors of the economy, witnessed dramatic changes following the introduction of the structural adjustment programmes (SAPs) in mid 1986. The labour market has a central role to play in the attainment of SAP objectives such as employment, income growth, and poverty reduction. In 1998 and 2000 the Federal Government implemented two jumbo salary increases which raised minimum salaries in the public sector. This had further implications for wages and employment in the formal sector of the economy. It then becomes necessary to understand the labour market process in the country. This study, focusing on the wage determination process, particularly in the manufacturing sector seeks to do this. Through this, it is possible to answer to the question: “Why would wages not adjust to equate labour supply to labour demand?” Drawing inspiration from the efficiency wage and related literature, the study uses data from an annual survey of manufacturing establishments conducted by the United Nations Industrial Development Organization in collaboration with the Centre for the Study of African Economies, Oxford, to analyse wage determination process in the manufacturing sector in Nigeria. Production and earning function approaches were used in the analysis. The ordinary least squares and instrumental two-stage least squares techniques were used in the analysis. Results from the production function analysis show that there is a positive and statistically significant relation between relative wage and productivity, consistent with prediction of the efficiency wage model. Estimation of further augmented production function suggests that some rent-sharing variables such as unionization are also relevant. Results from analysis of the earnings function show that earnings differentials seem to be explained mainly by human capital, as predicted by the competitive models. Efficiency wage and rent-sharing models both provide additional explanations. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_222&r=lab |
| By: | Sachs, Andreas |
| Abstract: | Isolated effects of labor and product market institutions as well as the interaction between both aforementioned categories on unemployment have been extensively discussed in the empirical literature. However, interaction effects between individual labor market institutions have been widely neglected, mainly due to the infeasibility to correctly specify the model. In this paper, a model averaging approach is adopted to show that considering institutional interactions can improve the explanatory power of macroeconomic models explaining unemployment. The approach permits to tackle model specification problems directly related to the inclusion of a large number of interactions. Using a panel data set for 17 OECD countries from 1982 to 2005, 22 robust and significant interactions can be identified. Furthermore, country-specific marginal effects of institutional changes are calculated and their economic significance is analyzed for selected countries. -- |
| Keywords: | Unemployment,Institutions,Labor and Product Markets,Model Averaging,Institutional Interactions,Institutional Design |
| JEL: | C33 E24 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11057&r=lab |
| By: | Matthew Wiswall; Basit Zafar |
| Abstract: | We investigate how college students form and update their beliefs about future earnings using a unique “information” experiment. We provide college students true information about the population distribution of earnings and observe how this information causes respondents to update their beliefs about their own future earnings. We show that college students are substantially misinformed about population earnings and logically revise their self-beliefs in response to the information we provide, with larger revisions when the information is more specific and is good news. We classify the updating behaviors observed and find that the majority of students are non-Bayesian updaters. |
| Keywords: | Prediction (Psychology) ; Wages ; Universities and colleges ; Demography ; Uncertainty ; Bayesian statistical decision theory |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:516&r=lab |
| By: | Mohammad Alauddinh (School of Economics, The University of Queensland); Adrian Ashman (School of Education, The University of Queensland) |
| Abstract: | A plethora of studies document the profound contextual changes leading amongst other things to diversity of the student population in the higher education sector in the developed world in the last two decades. However, the existing literature is less clear about (a) patterns of students’ study practices, and (b) how the factors underpinning diversity of the student population shape their study practices. This paper seeks to fill this gap. Employing a large data set of survey responses from a leading Australian university, this paper provides a quantitative analysis of students’ perceptions about their study practices in the teaching and learning process. Analysis of the survey data entailed two stages. First, factor analysis explored themes (or dimensions) within the survey. Multivariate analysis of variance was then undertaken using students’ factor scores as dependent variables, with their age, sex, ethnicity, study discipline, study level, and academic performance as grouping variables. Four factors, (Concordance and Engagement; Disconnection and Disengagement; Reflection and Realisation; and Learning Impediments) reflected students’ study practices. The core difference between students in their study practices was influenced by age, ethnicity, academic performance, and sex-ethnicity interaction. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:439&r=lab |
| By: | Gil Epstein (Bar-Ian University, Israel, CReAM, IZA); Alessandra Venturini (University of Turin, CARIM, IZA) |
| Abstract: | Temporary and circular migration programs have been devised by many destination countries and supported by the European Commission as a policy to reduce welfare and social costs of immigration in destination countries. In this paper we present an additional reason for proposing temporary migration policies based on the characteristics of the foreign labor-effort supply. The level of effort exerted by migrants, which decreases over their duration in the host country, positively affects production, real wages and capital owners' profits. We show that the acceptance of job offers by migrants result in the displacement in employment of national workers. However it increases the workers' exertion, decreases prices and thus can counter anti-immigrant voter sentiment. Therefore, the favorable sentiment of the capital owners and the local population towards migrants may rise when temporary migration policies are adopted. |
| Keywords: | Migration, Exertion of effort, Contracted Temporary Migration |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1109&r=lab |
| By: | Wübker, Ansgar |
| Abstract: | On the basis of the Survey of Health, Ageing, and Retirement (SHARE), we analyse the determinants of who engages in mammography screening focusing on European women aged 50-69 years. A special emphasis is put on the measurement error of subjective life expectancy and on the measurement and impact of physician quality. Our main findings are that physician quality, better education, having a partner, younger age and better health are associated with higher rates of receipt. The impact of subjective life-expectancy on screening decision substantially increases after taking measurement error into account. In light of the enormous differences in mammography screening rates between the European countries that can be detected even if several individual characteristics are taken into account, we explore in a second step the causes of these screening differences using newly available data from the SHARELIFE. The results reveal that in countries with low screening rates (e.g. Denmark, Greece and Poland) many reasons (financial restrictions, time costs, access barriers, lack of information, not usual and low perceived benefits of screening) are significant predictors of not receiving a mammogram. In contrast in countries with high screening rates such as the Netherlands only beliefs regarding the benefits of mammograms (Not considered to be necessary) and the cause Not usual to get this type of care seem to be important screening barriers. -- |
| JEL: | I11 I18 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:uwhdps:152011&r=lab |
| By: | Mohammad Alauddinh (School of Economics, The University of Queensland); Adrian Ashman (School of Education, The University of Queensland) |
| Abstract: | This paper provides a quantitative analysis of student perceptions in regard to their views and expectations about the purpose of university study. Over 800 survey responses from students attending a leading Australian university forms the empirical basis. Factor analysis was used to explore themes (or dimensions) based on data collected via a paper-and-pencil survey. Multivariate analysis of variance was then undertaken using students’ factor scores as dependent variables, and age, sex, ethnicity, study discipline, study level, and academic performance as grouping variables. Four factors (Approach to Teaching, Active Participation, Communication and Feedback, and Clarity of Focus and Purpose) reflected students’ views and expectations about the university teaching and learning process. These labels typified behaviour that reflected students’ keen interest in the lecturer’s teaching approach, active participation in the teaching and learning process, and the lecturers’ responsiveness to students’ needs. In turn, students’ perceived views about and expectations were affected by their sex, ethnicity, study discipline, level of study, sex-ethnicity interaction. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:438&r=lab |
| By: | Humphreys, Brad (University of Alberta, Department of Economics); Paul, Rodney (Syracure University); Weinbach, Andrew (Coastal Carolina University) |
| Abstract: | Previous research on CEO turnover indicates that a number of factors, including age, firm performance, and expected firm performance affect CEO turnover. Measurement of expected performance in these studies is typically based on investment analysts’ forecasts of earnings; these expectations potentially suffer from a number of problems, including the tendency for CEOs to “manage” analysts’ expectations. We examine the relationship between performance expectations and CEO turnover using data from NCAA Division I-A college football using a market-determined measure of expected performance, winning percentage against point spreads; this expected performance measure does not suffer from many of the problems that plague analysts’ earnings forecasts. We find that performance expectations, actual expectations, and tenure affect CEO turnover in NCAA Division I-A college football, based on performance data from 102 Division I-A football programs over the period 1980-2004. |
| Keywords: | CEO turnover; performance expectations; betting markets |
| JEL: | D84 J44 J63 |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2011_014&r=lab |
| By: | Andrea Diem (Swiss Coordination Centre for Research in Education (SCCRE), Aarau); Stefan C. Wolter (Swiss Coordination Centre for Research in Education (SCCRE), Aarau, and University of Bern, CESifo and IZA) |
| Abstract: | This paper uses bibliometric data to investigate the research performance of Swiss professors in the field of education sciences. The analyses are based on two separate databases: Web of Science and Google Scholar. A comparison of the various indicators used to measure research performance (quantity of publications and citation impact) from the two data sources indicates highly positive correlations between all of them, to a greater or lesser degree. At the same time, there is evidence that significant individual factors that would serve to explain the great variance in research performance can be identified only if the Web of Science is used as a benchmark of research performance. However, the Web of Science inclusion policy is associated with certain issues that put some research authors at a disadvantage. Therefore, problems currently exist in regard to both citation databases when used to benchmark individual research performance: Web of Science adopts a selective approach, but some of the criteria employed are problematic. Google Scholar on the other hand is so inclusive that it is virtually impossible to identify explanatory variables for the existing major individual differences in research performance. |
| Keywords: | bibliometrics, education sciences, research performance, scientometric methods, science research |
| JEL: | I23 I29 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0066&r=lab |
| By: | Alberto Chong (Institute for International Economic Policy, George Washington University); Pascal Restrepo (Massachusetts Institute of Technology) |
| Abstract: | We provide evidence of the Peltzman effect by tracking the professional path of each hockey player that ended up in the National Hockey League from 2001 to 2006. We take advantage of the fact that visor use has not always been compulsory throughout a player's career, which allows us to compare the change in behavior of users and non-users of visors when they are forced to use them. We find that whereas the average penalty minutes per game is 0.8, visors cause a substantial increase of 0.2 penalty minutes per game. Players become more aggressive when forced to wear a visor, partially offsetting its protective effect and creating potential spillover effects to other players. |
| Keywords: | Peltzman Effect, Ice Hockey, Compensating Behavior |
| JEL: | K32 K23 H40 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2011-12&r=lab |
| By: | Ann P. Bartel; Ciaran S. Phibbs; Nancy Beaulieu; Patricia Stone |
| Abstract: | This paper contributes to the literature on the relationship between human capital and organizational performance. We use detailed longitudinal monthly data on nursing units in the Veterans Administration hospital system to identify how the human capital (general, hospital-specific and unit or team-specific) of the nursing team on the unit affects patients' outcomes. Since we use monthly, not annual, data, we are able to avoid the omitted variable bias and endogeneity bias that could result when annual data are used. Nurse staffing levels, general human capital, and unit-specific human capital have positive and significant effects on patient outcomes while the use of contract nurses, who have less specific capital than regular staff nurses, negatively impacts patient outcomes. Policies that would increase the specific human capital of the nursing staff are found to be cost-effective. |
| JEL: | I11 I12 J24 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17474&r=lab |
| By: | Regina Flake |
| Abstract: | This study analyzes gender diff erences in the intergenerational earnings mobility of second-generation migrants in Germany. The analysis takes into account potential infl uences like assortative mating in the form of ethnic marriages and the parental integration measured by parents’ years since migration. First, intergenerational earnings elasticities are estimated at the mean and along the earnings distribution. The results do not reveal large diff erences in the intergenerational mobility – neither between natives and migrants nor between men and women. Second, intergenerational changes in the relative earnings position are analyzed. The results show that migrants are less likely than natives to worsen their relative earnings position while they have the same probability as natives to improve their earnings position. In summary, migrants are mostly as (im)mobile as the native population. |
| Keywords: | International migration; second-generation migrants; intergenerational mobility; marriage |
| JEL: | F22 J12 J30 J62 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0283&r=lab |
| By: | Matti Sarvimäki (Aalto University School of Economics, Government Institute for Economic Research and London School of Economics); Kari Hämäläinen (Government Institute for Economic Research) |
| Abstract: | Immigration policy design is an important and controversial topic in most developed countries. We inform this debate by evaluating the effects of an integration program for immigrants to Finland. The program consists of an individualized sequence of training and subsidized employment. Non-compliance is sanctioned by reductions in welfare benefits. Our empirical strategy exploits a discontinuity that made participation obligatory in May 1999 only for those who had entered the population register after May 1997. The results suggest that the program strongly increased the employment and earnings of immigrants and reduced their dependency on social benefits. |
| Keywords: | Immigrants, assimilation, integration programs, regression-discontinuity |
| JEL: | J61 J68 H53 I38 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2011015&r=lab |
| By: | Ketcham, Jonathan D.; Lucarelli, Claudio; Miravete, Eugenio J; Roebuck, M Christopher |
| Abstract: | Under Medicare Part D, senior citizens choose prescription drug insurance offred by numerous private insurers. We examine non-poor enrollees' actions in 2006 and 2007 using panel data. Our sample reduced overspending by $298 on average, with gains by 81% of them. The greatest improvements were by those who overspent most in 2006 and by those who switched plans. Decisions to switch depended on individuals' overspending in 2006 and on individual-specific effects of changes in their current plans. The oldest consumers and those initiating medications for Alzheimer's disease improved by more than average, suggesting that real-world institutions help overcome cognitive limitations. |
| Keywords: | Insurance Plan Switching; Overspending; Prescription Drugs |
| JEL: | D01 D8 H51 I10 I11 I18 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8585&r=lab |
| By: | Portner, Claus C; Beegle, Kathleen; Christiaensen, Luc |
| Abstract: | Although reproductive health advocates consider family planning programs the intervention of choice to reduce fertility, there remains a great deal of skepticism among economists as to their effectiveness, despite little rigorous evidence to support either position. This study explores the effects of family planning in Ethiopia using a novel set of instruments to control for potential non-random program placement. The instruments are based on ordinal rankings of area characteristics, motivated by competition between areas for resources. Access to family planning is found to reduce completed fertility by more than one child among women without education. No effect is found among women with some formal schooling, suggesting that family planning and formal education act as substitutes, at least in this low-income, low-growth setting. This provides support to the notion that increasing access to family planning can provide an important, complementary entry point to kick-start the process of fertility reduction. |
| Keywords: | Population Policies,Health Monitoring&Evaluation,Adolescent Health,Reproductive Health,Rural Development Knowledge&Information Systems |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5812&r=lab |
| By: | Martinho, Vítor João Pereira Domingues |
| Abstract: | We built a model identifying the determinants that affect the mobility of labor. The empirical part of the work will be performed for the NUTS II of Portugal, from 1996 to 2002. As main conclusion it can be said, for the NUTS II (1996-2002), which is confirmed the existence of some labor mobility in Portugal and that regional mobility is mainly influenced positively by the output growth and negatively by the unemployment rates and by the weight of the agricultural sector (1)(Martinho, 2011). |
| Keywords: | net migration; Portuguese regions; panel estimations; linear models |
| JEL: | C20 C50 O15 R23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33717&r=lab |
| By: | Divya Anantharaman |
| Abstract: | I examine the determinants and consequences of corporate pension plan investments in hedge funds and private equity, commonly referred to as ‘alternative assets’. I find that highly leveraged firms with low market-to-book ratios and volatile earnings performance are more likely to invest in alternative assets, indicating that financially constrained firms choose alternative investments to increase asset returns and minimize pension contributions. I also find a nonlinear relationship between plan funding status and alternative investing – very underfunded and well-funded plans are less likely to make alternative investments compared to moderately underfunded plans, suggesting that such plan sponsors may avoid these investments to minimize contribution volatility. I find that plans with alternative investments earn higher returns in the pre-crisis period, but also perform more poorly during the crisis period, suggesting that the potential diversification benefits from investing in this asset category may be overstated. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2011-13&r=lab |