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on Labour Economics |
| By: | Pekkarinen, Tuomas (Aalto University) |
| Abstract: | This paper surveys the trends in gender gaps in education, their causes and potential policy implications. I show that female educational attainment has surpassed, or is about to surpass, male educational attainment in most industrialized countries. These gaps reflect male overrepresentation among secondary school drop-outs and female overrepresentation among tertiary education students and graduates. Existing evidence suggests that this pattern is a result of a combination of increasing returns to education and lower female effort costs of education. Widening gender gap in education combined with recent wage and employment polarization will likely lead to widening inequalities and is linked to declining male labor force participation. The paper discusses evidence on educational policies that both widen and reduce gender gaps in educational outcomes. |
| Keywords: | gender differences, test scores, education |
| JEL: | I20 J16 J24 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6390&r=lab |
| By: | D. VERHAEST; E. OMEY |
| Abstract: | We analyse the relationship between formal education and on-the-job skill acquisition (SA) for a sample of Flemish school-leavers. SA is measured directly through subjective assessments. Formal education is found to reinforce labour market inequality because additional years of education enhance the probability of all types of SA. With respect to general SA, this impact is higher for generally-educated compared to vocationally-educated individuals. This is predominantly explained by between-occupation effects; jobs that require more years of formal education also require more additional SA. Within occupations, we find some limited evidence on both dominant complementary and substitution effects. Under-educated workers have lower overall SA probabilities than adequately educated workers in similar occupations; over-educated workers with a vocational degree acquire less transferable or general skills than their adequately educated colleagues. Because over-educated workers work in jobs with less additional SA requirements, they also acquire less additional skills than adequately educated workers with similar educational backgrounds. |
| Keywords: | OJT, vocational education, overeducation, overqualification, underemployment |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:12/768&r=lab |
| By: | Kjell Erik Lommerud (Department of Economics, University of Bergen, Norway); Odd Rune Straume (Universidade do Minho - NIPE and University of Bergen (Health Economics Bergen, Department of Economics), Norway); Steinar Vagstad (Department of Economics, University of Bergen, Norway) |
| Abstract: | We analyse the effects of different labour market policies - employment protection, unemployment benefits and payroll taxes - on job creation and technology choices in a model where firms are randomly matched with workers of different productivity and wages are determined by ex-post bargaining. In this setting, unemployment benefits are unambiguously detrimental both to job creation and technology adoption while the effects of employment protection are mixed, as higher firing costs stifle job creation but stimulate technology investments. This suggests that a 'flexicurity' policy, with low employment protection and high unemployment benefits, might have the adverse effect of slowing down technological progress and job growth. Indeed, our analysis of the optimal policy solution suggests that flexicurity is often not optimal, and may be optimal only in conjunction with payroll subsidies. |
| Keywords: | Technology adoption; job creation; employment protection; unemployment insurance. |
| JEL: | H21 J38 J65 O31 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:03/2012&r=lab |
| By: | Catherine Pollak (IRDES institut for research and information in health economics) |
| Abstract: | European countries with high senior employment rates have the highest levels of job satisfaction despite an older and more physically limited workforce. In this paper, we argue that this paradox can be explained by heterogeneous levels of job quality: better working conditions may enable older workers with disabilities to remain satisfied and employed. Using panel data from the Survey of Health, Ageing and Retirement in Europe, we find that health status, job satisfaction, but also working conditions, are major individual determinants of early labour market exits. We also show that high intrinsic and extrinsic rewards can mitigate the selective effects of disability. Finally,the comparative analysis reveals that older workers with disabilities are more likely to be employed in countries where they receive higher rewards. The findings therefore indicate that improved job quality is a major factor of successful active ageing strategies. |
| Keywords: | Job satisfaction, Working conditions, Occupational health, Ageing labour supply. |
| JEL: | J28 J22 I19 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:irh:wpaper:dt45&r=lab |
| By: | Bennett, John (Brunel University); Rablen, Matthew D. (Brunel University) |
| Abstract: | We construct a simple model incorporating various urban labour market phenomena obtaining in developing economies. Our initial formulation assumes an integrated labour market and allows for entrepreneurship, self-employment and wage employment. We then introduce labour market segmentation. In equilibrium voluntary and involuntary self-employment, formal and informal wage employment, and formal and informal entrepreneurship may all coexist. We illustrate the model by an example calibrated on Latin American data, examining individual labour market transitions and implications of education/training and labour market policies. To diminish informality, cutting the costs of formality is more effective than raising those of informality. |
| Keywords: | self-employment, wage employment, informality |
| JEL: | O17 J23 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6406&r=lab |
| By: | Laura Cepeda Emiliani; Juan D. Barón |
| Abstract: | In this paper we show the importance of subject of degree in explaining the gender wage gap in Colombia. In order to minimize the influence of gender differences in experience, promotions, and job changes on the wage gap, we focus on college graduates who have a formal job and who have been in the labor market at most one year. Using unique, administrative datasets with detailed subjects of degree, we find that the wage gap against women is on average 11% and that 40% of it can be explained by differences in subject of degree. Using a distributional decomposition, we find an increasing gender wage gap across the distribution of wages (from 2% at the bottom to 15% at the top), although subject of degree explains a lower 30% of the gap at the top. Policies designed to reduce the gender wage gap need to address the differing gender educational choices and the factors that influence them. These policies would be more effective in reducing the gap for median wage earners. |
| Date: | 2012–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:col:000094:009382&r=lab |
| By: | Mussida, C.; Picchio, M. (Tilburg University, Center for Economic Research) |
| Abstract: | Abstract: This paper studies the gender wage gap by educational attainment in Italy using the 1994–2001 ECHP data. We estimate wage distributions in the presence of covariates and sample selection separately for highly and low educated men and women. Then, we decompose the gender wage gap across all the wage distribution and isolate the part due to gender differences in the remunerations of the similar characteristics. We find that women are penalized especially if low educated. When we control for sample selection induced by unobservables, the penalties for low educated women become even larger, above all at the bottom of the wage distribution. |
| Keywords: | gender wage gap;education;counterfactual distributions;decompositions;hazard function. |
| JEL: | C21 C41 J16 J31 J71 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2012021&r=lab |
| By: | Klasen, Stephan (University of Göttingen); Pieters, Janneke (IZA) |
| Abstract: | In the past twenty years, India's economy has grown at increasing rates and now belongs to the fastest-growing economies in the world. This paper examines drivers of female labor force participation in urban India between 1987 and 2004, showing a much more nuanced picture of female labor force participation than one might expect. Recent trends in employment and earnings suggest that at lower levels of education, female labor force participation is driven by necessity rather than economic opportunities. Unit level estimation results confirm that participation of poorly educated women is mainly determined by economic push factors and social status effects. Only at the highest education levels do we see evidence of pull factors drawing women into the labor force at attractive employment and pay conditions. This affects, by 2004, only a small minority of India's women. So despite India's economic boom, it appears that for all but the very well educated, labor market conditions for women have not improved. |
| Keywords: | female labor force participation, education, India |
| JEL: | J21 J22 O12 O15 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6395&r=lab |
| By: | Gathmann, Christina (University of Heidelberg); Jürges, Hendrik (University of Mannheim); Reinhold, Steffen (MEA, University of Mannheim) |
| Abstract: | Education yields substantial non-monetary benefits, but the size of these gains is still debated. Previous studies, for example, report contradictory effects of education and compulsory schooling on mortality – ranging from zero to large mortality reductions. Using data from 19 compulsory schooling reforms implemented in Europe during the twentieth century, we quantify the mean mortality effect and explore its dispersion across gender, time and countries. We find that men benefit from compulsory education both in the shorter and longer run. In contrast, compulsory schooling reforms have little or no effect on mortality for women. |
| Keywords: | compulsory schooling, education, mortality, Europe |
| JEL: | I12 I21 I28 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6403&r=lab |
| By: | Hernæs, Erik (Frisch Centre for Economic Research); Jia, Zhiyang (Statistics Norway,) |
| Abstract: | Norwegian administrative data are used to evaluate the impact of a doubling of the threshold in the retirement earnings test. We find almost no impact on the extensive margin, but a positive effect on the intensive margin. This positive effect is uneven over the earnings distribution, and concentrated on workers around the threshold, increasing with exposure to the reform and leading to a decrease in earnings inequality. Individuals who remain active until retirement age respond more to the reform. Conditional on pre-reform earnings, we find little evidence that individual characteristics such as working histories influence the responsiveness to the reform |
| Keywords: | retirement earnings test; benefit entitlement; labour supply behaviour; heterogeneity |
| JEL: | H55 J14 |
| Date: | 2012–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2012_001&r=lab |
| By: | Rodolfo E. Manuelli; Ananth Seshadri; Yongseok Shin |
| Abstract: | We develop a model of retirement and human capital investment to study the effects of tax and retirement policies. Workers choose the supply of raw labor (career length) and also the human capital embodied in their labor. Our model explains a significant fraction of the US-Europe difference in schooling and retirement. The model predicts that reforms of the European retirement policies modeled after the US can deliver 15–35 percent gains in per-worker output in the long run. Increased human capital investment in and out of school accounts for most of the gains, with relatively small changes in career length. |
| Keywords: | Human capital ; Labor supply ; Retirement |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2012-004&r=lab |
| By: | Dronkers, Jaap; van der Velden, Rolf; Dunne, Allison |
| Abstract: | The main research question of this paper is the combined estimation of the effects of educational systems, school composition, track level, and country of origin on the educational achievement of 15-year-old migrant students. We focus specifically on the effects of socioeconomic and ethnic background on achievement scores and the extent to which these effects are affected by characteristics of the school, track, or educational system in which these students are enrolled. In doing so, we examine the ‘sorting’ mechanisms of schools and tracks in highly stratified, moderately stratified, and comprehensive education systems. We use data from the 2006 Programme for International Student Assessment (PISA) wave. Compared with previous research in this area, the paper’s main contribution is that we explicitly include the tracks-within-school level as a separate unit of analyses, which leads to less biased results concerning the effects of educational system characteristics. The results highlight the importance of including factors of track level and school composition in the debate surrounding educational inequality of opportunity for students in different education contexts. The findings clearly indicate that the effects of educational system characteristics are flawed if the analysis only uses a country- and a student level and ignores the tracks-within-school level characteristics. From a policy perspective, the most important finding is that educational systems are neither uniformly ‘good’ nor ‘bad’, but they can result in different consequences for different migrant groups. Some migrant groups are better off in comprehensive systems, while others are better off in moderately stratified systems. |
| Keywords: | migrants; educational performance; educational systems; schools; destination country; origin country; cross-national; PISA |
| JEL: | F22 O1 O15 I21 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37261&r=lab |
| By: | Katja Görlitz; Marcus Tamm |
| Abstract: | This paper addresses the question to which extent the complementarity between education and training can be attributed to differences in observable characteristics, i.e. to individual, job and firm specific characteristics. The novelty of this paper is to analyze previously unconsidered characteristics, in particular, personality traits and tasks performed at work which are taken into account in addition to the standard individual specific determinants. Results show that tasks performed at work are strong predictors of training participation while personality traits are not. Once working tasks and other job related characteristics are controlled for, the skill gap in training participation drops considerably for off-the-job training and vanishes for on-the-job training. |
| Keywords: | Training; personality traits; working tasks; Oaxaca decomposition |
| JEL: | I21 J24 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0307&r=lab |
| By: | Bhaumik, Sumon K. (Aston University); Dimova, Ralitza (University of Manchester) |
| Abstract: | The stylized literature on foreign direct investment suggests that developing countries should invest in the human capital of their labour force in order to attract foreign direct investment. However, if educational quality in developing country is uncertain such that formal education is a noisy signal of human capital, it might be rational for multinational enterprises to focus more on job-specific training than on formal education of the labour force. Using cross-country data from the textiles and garments industry, we demonstrate that training indeed has greater impact on firm efficiency in developing countries than formal education of the work force. |
| Keywords: | human capital, training, firm-level efficiency, multinational enterprises |
| JEL: | F23 I25 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6382&r=lab |
| By: | Katja Görlitz; Barbara S. Grave |
| Abstract: | Using data on German university graduates, this paper analyzes wage differentials by field of study at labor market entry and five to six years later. At both points in time, graduates from Arts and Humanities have lower average monthly wages compared to other fields of study. Blinder-Oaxaca decompositions show that these wage differentials are generated largely by different job and firm characteristics of graduates rather than individual or study-related characteristics. We also find evidence that the less favorable job and firm characteristics of Arts and Humanities graduates at labor market entry persist for (at least) the next five to six years. |
| Keywords: | Wage decomposition; university graduates; field of study |
| JEL: | I23 J24 J31 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0316&r=lab |
| By: | Dostie, Benoit (HEC Montreal); Kromann, Lene (CEBR, Copenhagen) |
| Abstract: | In this paper, we estimate income- and substitution- labour supply and participation elasticities for Canadian married women using data from the Survey of Labour and Income Dynamics 1996-2005. We use the Canadian Tax and Credit Simulator (CTaCS) and detailed information on the structure of income at the household level to compute the marginal tax rates faced by each individual. We then use these marginal tax rates to compute net own-wage, spouse-wage, and non-labour income. We show how the magnitude of the estimated elasticities varies depending on whether net or gross wages and income are used in the estimation procedure, and quantify biases caused by using average instead of marginal tax rates. Finally, because marginal tax rates vary significantly over the sample, we use quantile regressions to compare elasticities at different points of the hours distribution. Overall, our results show that public policies now have, on average, less scope for influencing hours of work than 10 years ago. However, the quantile results show that wives working fewer hours per week are more sensitive to changes in their own or spouses' wages. |
| Keywords: | labour supply, elasticities, labour force participation, taxes, Canada |
| JEL: | C25 H31 J22 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6392&r=lab |
| By: | Filatriau Olivier; Frédéric Reynès (IVM Faculty of Earth and Life Sciences, VU University Amsterdam) |
| Abstract: | This article proposes a new approach to estimate the effect of the unemployment rate on the labor participation ratio by sex and age. OECD labor participation ratios are estimated within an unobservable component model with the Kalman filter. This allows for treating the trend of the participation rate as a stochastic time varying parameter. This improves the quality of the econometric results by allowing for a better identification of changes in the trend than the most common alternatives using determinist and logistic trends. Moreover the use of cross-section OECD circumvents the problem of the lack of long time series data. We find that OECD labor participation ratio are sensitive to the labor market situation in all sex and age categories and that the discouraged worker effect dominates the additional worker effect although the latter is clearly present for women. |
| Keywords: | labor force participation; unemployment;flexion effects; additional/discouraged worker effect; OECD; cross-section estimation; Kalman filter |
| JEL: | J21 C13 C31 C32 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1209&r=lab |
| By: | Verdugo, G.; Fraisse, H.; Horny, G. |
| Abstract: | This paper investigates the recent changes in the French wage structure from 1990 to 2008. To do so, we disentangle the impact of changes in employment probability, changes in the levels of education and experience and changes in the price of labor. Unlike other developped countries, we find that upper and lower tail inequality decline between the first and the last decile for male and female. The recent period thus could be described as a period of “great compression” of wages between the first and the last decile. As a result, the decline in education and experience returns has produced one of the most egalitarian wage structure ever observed in France since the 1960s. |
| Keywords: | Wage Inequality, France. |
| JEL: | J3 D3 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:370&r=lab |
| By: | Laun, Tobias (Dept. of Economics, Stockholm School of Economics); Wallenius, Johanna (Dept. of Economics, Stockholm School of Economics) |
| Abstract: | In this paper we develop a life cycle model of labor supply and retirement to study the interactions between health and the labor supply behavior of older workers, in particular disability insurance and pension claiming. In our framework, individuals choose when to stop working and, given eligibility criteria, when/if to apply for disability and pension benefits. Individuals care about their health and can partially insure against health shocks by investing in health. We use the model to study the labor supply implications of the recent Swedish pension reform. We find that the new pension system creates big incentives for the continued employment of older workers. In particular, the model predicts an increase in the average retirement age of more than two years. |
| Keywords: | life cycle; retirement; pension reform; disability insurance; health |
| JEL: | E24 J22 J26 |
| Date: | 2012–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hastef:0741&r=lab |
| By: | Robert G. Valletta; K. Jody Hoff; Jane S. Lopus |
| Abstract: | Using data on 24 teachers and 982 students from a 2006 survey of California high school economics classes, we assess the effects of student and teacher characteristics on student achievement. We estimate value-added models of outcomes on multiple choice and essay exams, with matched classroom pairs for each teacher enabling random effects and fixed-effects estimation. Students’ own and peer GPAs and their attitudes towards economics have the largest effects on value-added scores. We also find a substantial impact of specialized teacher experience and college-level coursework in economics, although the effects of the latter are positive for the multiple choice test and negative for the essay test. |
| Keywords: | Education |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2012-03&r=lab |
| By: | Jan Peter aus dem Moore; Alexandra Spitz-Oener |
| Abstract: | What is the impact of a local negative demand shock on local labor markets? We exploit the unique natural experiment provided by the drawdown of U.S. military forces in West Germany after the end of the Cold War to investigate this question. We find persistent negative effects of the reduction in the U.S. forces on private sector employment, with con- siderable heterogeneity in terms of age and education groups, and sectors. In addition, the U.S. forces reduction resulted in a rise in local unemployment, whereas migration patterns and wages were not affected. |
| Keywords: | Labor demand shock, Base closure, Employment, Wages |
| JEL: | J23 R23 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2012-024&r=lab |
| By: | Ronald Bachmann; Mathias Sinning |
| Abstract: | This paper analyzes the contribution of the socioeconomic and demographic composition of the pool of employed and unemployed individuals to the dynamics of the labor market in different phases of the business cycle. Using individual level data from the Current Population Survey (CPS), we decompose differences in employment status transition rates between economic upswings and downturns into composition effects and behavioral effects. We find that overall composition effects play a minor role for the cyclicality of the unemployment outflow rate, although the contribution of the duration of unemployment is significant. In contrast, composition effects dampen the cyclicality of the unemployment inflow rate considerably. We further observe that the initially positive contribution of composition effects to a higher unemployment outflow rate turns negative over the course of the recession. |
| Keywords: | Gross worker flows; unemployment duration; decomposition analysis; Blinder-Oaxaca |
| JEL: | J63 J64 J21 E24 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0305&r=lab |
| By: | Jerome Adda; Christian Dustmann; Katrien Stevens |
| Abstract: | This paper analyzes the life-cycle career costs associated with child rearing and decomposes their effects into unearned wages (as women drop out of the labor market), loss of human capital, and selection into more child-friendly occupations. We estimate a dynamic life-cycle model of fertility, occupational choice, and labor supply using detailed survey and administrative data for Germany for numerous birth cohorts across different regions. We use this model to analyze both the male-female wage gap as it evolves from labor market entry onward and the effect of pro-fertility policies. We show that a substantial portion of the gender wage gap is explainable by realized and expected fertility and that the long-run effect of policies encouraging fertility are considerably lower than the short-run effects typically estimated in the literature. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2012/01&r=lab |
| By: | Benoit Dostie (IEA, HEC Montréal) |
| Abstract: | In this paper, we estimate income- and substitution- labour supply and participation elasticities for Canadian married women using data from the Survey of Labour and Income Dynamics 1996-2005. We use the Canadian Tax and Credit Simulator (CTaCS) and detailed information on the structure of income at the household level to compute the marginal tax rates faced by each individual. We then use these marginal tax rates to compute net own-wage, spouse-wage, and non-labour income. We show how the magnitude of the estimated elasticities varies depending on whether net or gross wages and income are used in the estimation procedure, and quantify biases caused by using average instead of marginal tax rates. Finally, because marginal tax rates vary significantly over the sample, we use quantile regressions to compare elasticities at different points of the hours distribution. Overall, our results show that public policies now have, on average, less scope for influencing hours of work than 10 years ago. However, the quantile results show that wives working fewer hours per week are more sensitive to changes in their own or spouses’ wages. |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iea:carech:1202&r=lab |
| By: | Valletta, Rob (Federal Reserve Bank of San Francisco); Hoff, K. Jody (Federal Reserve Bank of San Francisco); Lopus, Jane S. (California State University, East Bay) |
| Abstract: | Using data on 24 teachers and 982 students from a 2006 survey of California high school economics classes, we assess the effects of student and teacher characteristics on student achievement. We estimate value-added models of outcomes on multiple choice and essay exams, with matched classroom pairs for each teacher enabling random effects and fixed-effects estimation. Students' own and peer GPAs and their attitudes towards economics have the largest effects on value-added scores. We also find a substantial impact of specialized teacher experience and college-level coursework in economics, although the effects of the latter are positive for the multiple choice test and negative for the essay test. |
| Keywords: | high school economics, teacher training |
| JEL: | A21 I21 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6402&r=lab |
| By: | Esther Pérez; Yao Yao |
| Abstract: | We read search theory’s unemployment equilibrium condition as an Iso-Unemployment Curve(IUC).The IUC is the locus of job destruction rates and expected unemployment durations rendering the same unemployment level. A country’s position along the curve reveals its preferences over the destruction-duration mix, while its distance from the origin indicates the unemployment level at which such preferences are satisfied Using a panel of 20 OECD countries over 1985-2008, we find employment protection legislation to have opposing efects on destructions and durations, while the effects of the remaining key institutional factors on both variables tend to reinforce each other. Implementing the right reforms could reduce job destruction rates by about 0.05 to 0.25 percentage points and shorten unemployment spells by around 10 to 60 days. Consistent with this, unemployment rates would decline by between 0.75 and 5.5 percentage points, depending on a country’s starting position. |
| Keywords: | Cross country analysis , Economic models , Labor market policy , Labor market reforms , OECD , Unemployment , |
| Date: | 2012–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/54&r=lab |
| By: | Ogndal, Tone (Dept. of Economics, University of Oslo) |
| Abstract: | Why do not people evade more taxes when their gain from evasion is higher than the expected penalties? Why does only a small minority evade when a large majority is willing to? These tax evasion puzzles are explained in a labour market framework where employees may combine reported work in firms with self-employed shadow work. On the margin, time spent on self-employed work reduces labour productivity in reported work. This creates an equilibrium where small, low-productive firms offer jobs with low wage rates but time for self-employed shadow work, while larger, more efficient firms offer jobs with higher reported wage rates but no time for shadow work. Improving the tax morale may not reduce evasion but only sort the honest people into jobs with no time for shadow work. Shadow work leads to an inefficient allocation of employees since it has the effect of a subsidy to low productive firms. Both lower taxes and minimum wages reduce evasion and improve labour allocation but harms low productive firms. |
| Keywords: | Shadow work; Tax evasion; Labour market |
| JEL: | H26 J29 K34 |
| Date: | 2012–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2012_005&r=lab |
| By: | Vanessa Hartlaub; Thorsten Schneider |
| Abstract: | According to sociological theories on educational choice, risk aversion is the main driving force for class-specific educational decisions. Families from upper social classes have to opt for the academically most demanding, long-lasting courses to avoid an intergenerational status loss. Families from lower social classes by contrast, tend instead to opt for shorter tracks to reduce the risk of failing in a long-lasting and costly education and, as a consequence, entering the labor market without a degree. This argument is deeply rooted in the social structure. Yet, the importance of individual risk preferences for educational choice has been neglected in sociology of education. We discuss these different forms of risk in the context of social inequalities in educational decision-making and demonstrate how they influence the intentions for further education of students attending the most demanding, academically orientated secondary school type in Germany. According to our argument, children from upper social classes are structurally almost compelled to opt for the academically most demanding educational courses, virtually without having a choice in the matter. In contrast, working class children do have to make an active decision and, thus, individual risk aversion comes into play for these students.<br /> For our empirical analyses, we rely on data from the youth questionnaire of the German Socio-Economic Panel Study (SOEP) collected in the years 2003 to 2010, and estimate multinomial logit models. Our empirical findings underline the importance of the structural risk aversion. Students with a higher social background are not only less sensitive to their school performance, but individual risk aversion is also completely irrelevant to their educational plans. The opposite applies to students with a lower social background: the more risk-averse they are, the more likely they are to opt for a double qualification rather than just a purely academic university degree course. |
| Keywords: | Educational inequality, educational decision-making, risk aversion, tertiary education, vocational training |
| JEL: | I24 D81 Z13 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp433&r=lab |
| By: | Davide Furceri; Lorenzo E. Bernal-Verdugo; Dominique M. Guillaume |
| Abstract: | The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using a panel of 97 countries from 1985 to 2008, the results of the paper suggest that improvements in labor market flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing regulations and hiring costs are found to have the strongest effect. |
| Keywords: | Cross country analysis , Labor markets , OECD , Unemployment , |
| Date: | 2012–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/64&r=lab |
| By: | Martin Foureaux Koppensteiner |
| Abstract: | Students in Brazil are typically assigned to classes based on their age ranking in their school grade. I exploit this rule to estimate the effects on maths achievement of being in a class with older peers for students in fifth grade of primary school. Because grade repetition is widespread in Brazil, the distribution of age is skewed to the right and hence age heterogeneity is typically higher in older classes. I provide evidence that heterogeneity in age is the driving factor behind the large negative estimated effect of being in an older class. Information on teaching practices and student behaviour sheds light on how class heterogeneity harms learning. |
| Keywords: | Peer effects; regression discontinuity; educational production; group heterogeneity. |
| JEL: | I20 I21 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:12/03&r=lab |
| By: | Brunello, Giorgio (University of Padova); Weber, Guglielmo (University of Padova); Weiss, Christoph T. (University of Padova) |
| Abstract: | In this paper we estimate the effect of education on lifetime earnings in Europe, by distinguishing between individuals who lived in rural or urban areas during childhood and between individuals who had access to many or few books at age ten. We instrument years of education using reforms of compulsory education in nine different countries, and find that individuals in rural areas were most affected by the reforms while individuals with many books at home mostly benefited from education. Our main result is that books at home at age ten have had long-lasting beneficial effects on the individuals who were pushed by the reforms to increase their years of education. |
| Keywords: | education, lifetime income, early conditions, Europe |
| JEL: | J24 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6386&r=lab |
| By: | Elisabetta Olivieri (Banca d'Italia) |
| Abstract: | In the last 15 years the Italian employment structure has undergone some radical changes. As a result, the proportion of high-skilled jobs (managers and professionals) has increased at the expense of medium-skilled jobs (clerks). Differently from the US, in Italy (and in many other European countries) there has been no increase in the share of low-skilled employment. Thus, we do not observe a polarization pattern in the employment structure, but a massive occupational upgrading towards high-skilled jobs. Furthermore, there is a positive correlation between changes in the employment and wage structures. This evidence is a signal of a demand-side shock which has hit the labour market in recent decades. In particular, according to the recent literature, technological change and outsourcing may have deeply affected labour demand in terms of skill level. |
| Keywords: | opportunities, employment, qualification |
| JEL: | D3 O3 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_117_12&r=lab |
| By: | Pia S. Schober |
| Abstract: | This research explores how different parental leave reforms in West Germany impacted on the time mothers and fathers in couples spent on child care. I investigate indirect effects through mothers' labor market return decisions more in detail than previous studies and also examine potential direct associations of reforms of the leave period and benefits with maternal and paternal care time. The analysis uses multilevel multiprocess models for 1299 couples with a first or second birth based on data from the German Socio-Economic Panel (1984-2009). I estimate simultaneously the timing and extent of mothers' labor market return, selection into childbearing, and maternal and paternal child care time over the years following a first or second birth. The findings suggest that the extensions of the maximum period of low-paid or unpaid leave between 1986 and 1992 and the introduction of shorter well-paid leave and two 'daddy months' in 2007 indirectly affected maternal and paternal child care through changes in mothers' work return decisions. Even after controlling for these indirect effects and fathers' take-up of leave, the parental leave extensions were directly associated with longer maternal care time on weekdays, whereas father involvement in child care increased after the 2007 reform. |
| Keywords: | Child care, gender division of unpaid work, maternal employment, parental leave policy, parenting |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp434&r=lab |
| By: | Fletcher, Jason M (Yale University) |
| Abstract: | While large literatures have shown that cognitive ability and schooling increases employment and wages, an emerging literature examines the importance of so-called "non-cognitive skills" in producing labor market outcomes. However, this smaller literature has not typically used causal methods in estimating the results. One source of heterogeneity that may play an important role in producing both personality and other non-cognitive skills and labor market outcomes is family background, including genetic endowments. This paper is the first to use sibling differences to estimate the effects of personality on employment and wages and is also able to control for many other sources of heterogeneity, including attractiveness, cognitive ability, schooling, occupation, and other factors. Overall, the findings suggest that personality measures are important determinants of labor market outcomes in adulthood and that the results vary considerably by demographic group. The findings also highlight the potential role of extraversion in leading to favorable labor market outcomes, which has not been documented in many other studies. |
| Keywords: | personality, wages, sibling fixed effects |
| JEL: | J24 J31 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6391&r=lab |
| By: | Kornstad, Tom (Statistics Norway); Nymoen, Ragnar (Dept. of Economics, University of Oslo); Skjerpen, Terje (Statistics Norway) |
| Abstract: | Macroeconomic theories take polar views on the importance of choice versus chance. At the micro level, it seems realistic to assume that both dimensions play a role for individual employment outcomes, although it might be difficult to separate these two effects. Nevertheless the choice and chance dimension are seldom treated symmetrically in models that use micro data. We estimate a logistic model of the probability of being employed among married or cohabitating women that are in the labor force. Besides variables that measure individual characteristics (choice), we allow a full set of indicator variables for observation periods that represent potential effects of aggregate shocks (chance) on job probabilities. To reduce the number of redundant indicator variables as far as possible and in a systematic way, an automatic model selection is used, and we assess the economic interpretation of the statistically significant indicator variables with reference to a theoretical framework that allows for friction in the Norwegian labor market. In addition, we also estimate models that use the aggregate female and male unemployment rates as ‘sufficient’ variables for the chance element in individual employment outcomes. Data are for Norway and span the period 1988q22008q4. |
| Keywords: | Job probability; Automatic model selection; Random utility modeling |
| JEL: | C21 J21 J64 |
| Date: | 2012–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2012_003&r=lab |
| By: | Posadas, Josefina (World Bank); Vidal-Fernández, Marian (University of New South Wales) |
| Abstract: | In the U.S., grandparents look after one in five preschool children of employed women. Does this source of informal childcare increase female labor force participation and if so, up to what extent? The main challenge to answer this question is that a positive relationship between grandparents’ childcare and female labor force participation might not be causal. We use the maternal grandmother’s death as an instrument of grandparents’ childcare to measure the effect of grandparents’ childcare on maternal labor force participation (MLFP). We compare OLS and IV estimates and find that grandparents’ childcare increases MLFP by 15 percentage points on average. We argue that most of the effect is driven by families from socio-economically disadvantaged backgrounds. |
| Keywords: | maternal labor force participation, grandparents, childcare, NLSY |
| JEL: | J2 I3 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6398&r=lab |
| By: | Zhang, Chuanchuan |
| Abstract: | Retirement system reforms such as postponing retirement age in law are needed in China because of its rapid population aging. The overquick aging will result in both shortage of labor force supply and incubus of the social security system. The Chinese government acknowledged the negative influences of population aging, but finally decided to maintain the retirement age in law unchanged. The reason, as claimed by the policy makers and many socio-economic scholars, is postponing retirement age in law in China will crowd out youth employment. Unfortunately, no empirical evidences are provided, although the claim is critical to the potential retirement system reform. In this paper, we firstly address the validity of this claim. Using micro data from China’s 1990 and 2000 census and the 2005 1% population sample survey, we provide the first piece of evidence on the relationship between elderly employment and youth employment in China. Our OLS estimation results suggest that employment rates of younger persons are positively rather than negatively associated with employment rate of older persons. We further tried to identify a causal relationship by using two-way fixed effects and TSLS estimation strategies and found results consistent with our OLS estimation. Finally, we examine whether employment of older persons hurts the youth at the intensive margin by estimating the impact of elderly employment on younger workers’ monthly wage and still found a positive rather than negative effect. In short, the claim that postponing the retirement age will hurt the youth cannot be supported by empirical evidence. Although our empirical results are tentative, we view this paper as an important try to provide the first piece of evidence on the potential impact of retirement reform on youth employment and as suggesting further empirical studies on the claim that postponing retirement age will hurt the youth. |
| Keywords: | Retirement Reform; Elderly Employment; Youth Employment |
| JEL: | H5 J1 J2 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37221&r=lab |
| By: | Tímea Ladányi; Rafal Kierzenkowski |
| Abstract: | Reducing the extent of inactivity and promoting labour supply is essential to foster labour market outcomes in Hungary in the medium term. Notwithstanding specific factors linked to education, the pension system or family and disability policies, financial disincentives play an important role in this regard. This paper describes the impact of recent reforms of the tax and benefit system in Hungary on some indicators of financial incentives to enter the labour market derived from OECD tax and benefit models. While personal income taxes were cut and the system of tax allowances for families became more generous other welfare benefits were reduced or phased out, which causes significant changes in the incentives for workers, inactive or unemployed people. Between 2010 and 2012, the average tax wedge dropped for high-income earners and/or families with two children, but increased mainly for individuals without children and income below the 80th percentile, which was partly mitigated by the implementation of compensation schemes. However, there is still a large gap in the average tax wedge with the OECD average and regional peers, notably driven by high social security contributions. The implicit tax on returning to work from unemployment remains relatively high and increased below the average wage for most family types. However, it was cut above that level. The absolute level of the implicit tax on returning to work from inactivity is significantly lower notably following across-the-board cuts for lone parents and one-earner married couples with two children, somewhat offset by increases below the average wage for families without children.<P>Les incitations au travail et les récentes réformes du système de prélèvements et de prestations en Hongrie<BR>La réduction du taux d’inactivité et l’augmentation de l’offre de travail sont deux éléments essentiels pour promouvoir de meilleurs résultats en termes d’emploi à moyen terme en Hongrie. Outre des facteurs spécifiques liés à l’éducation, au système de retraite, ou aux politiques en faveur de la famille ou des handicapés, les contre-incitations financières jouent un rôle important à cet égard. Cet article décrit l’impact des réformes récentes du système de prélèvements et de prestations hongrois sur certains indicateurs d’incitations au retour à l’emploi issus de modèles de prélèvements et de prestations élaborés par l’OCDE. Parallèlement à la baisse de l’impôt sur le revenu des personnes physiques et à des allègements fiscaux plus généreux accordés aux familles, d’autres prestations sociales ont été réduites ou progressivement supprimées, modifiant dans une large mesure les incitations pour les travailleurs, les inactifs ou les chômeurs. Entre 2010 et 2012, le coin fiscal moyen a baissé pour hauts salaires et/ou les familles avec deux enfants, mais s’est accentué essentiellement pour les personnes sans enfants et les salaires inférieurs au 80e centile, ce qui a été atténué par la mise en oeuvre d’un système d’indemnisation. Le coin fiscal moyen reste toutefois largement supérieur à la moyenne de l’OCDE et des pays de la région, notamment en raison du niveau élevé des contributions à la sécurité sociale. Le taux implicite d’imposition sur la reprise d’une activité professionnelle à l’issue d’une période de chômage reste relativement élevé et a augmenté pour les revenus inférieurs à la moyenne pour la plupart des catégories de ménages. Il a toutefois été réduit pour les salaires supérieurs à ce niveau. En valeur absolue, le taux implicite d’imposition sur le retour à l’emploi des inactifs est nettement inférieur, notamment à la suite des réductions globales en faveur des parents isolés et des ménages à revenu unique avec deux enfants, même s’il a augmenté pour les ménages à bas revenu sans enfants. |
| Keywords: | Hungary, labour supply, tax wedge, benefit system, implicit tax, effective tax rate, replacement rate, Hongrie, taux de remplacement, offre de travail, coin fiscal, système de prestations, taux implicite d’imposition, taux d’imposition effectif |
| JEL: | D63 H23 H24 J22 J38 J65 |
| Date: | 2012–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:944-en&r=lab |
| By: | Kocher, Martin G.; Luhan, Wolfgang J.; Sutter, Matthias |
| Abstract: | Empirical work on Akerlof’s theory of gift exchange in labor markets has concentrated on the fair wage-effort hypothesis. In fact, however, the theory also contains a social component that stipulates that homogenous agents that are employed for the same wage level will exert more effort, resulting in higher rents and higher market efficiency, than agents that receive different wages. We present the first test of this component, which we call the fair uniform-wage hypothesis. In our laboratory experiment, we establish the existence of a significant efficiency premium of uniform wages. However, it is not the consequence of a stronger level of reciprocity by agents, but of the retrenchment of sanctioning options on the side of principals with uniform wages. Hence, implementing limitations to contractual freedom can have efficiency-enhancing effects. |
| Keywords: | gift exchange; multiple agents; uniform contracts; collective wage; experiment |
| JEL: | C72 C91 C92 D21 J31 J50 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:12816&r=lab |
| By: | Martin G. Kocher; Wolfgang J. Luhan; Matthias Sutter |
| Abstract: | Empirical work on Akerlof’s theory of gift exchange in labor markets has concentrated on the fair wage-effort hypothesis. In fact, however, the theory also contains a social component that stipulates that homogenous agents that are employed for the same wage level will exert more effort, resulting in higher rents and higher market efficiency, than agents that receive different wages. We present the first test of this component, which we call the fair uniform-wage hypothesis. In our laboratory experiment, we establish the existence of a significant efficiency premium of uniform wages. However, it is not the consequence of a stronger level of reciprocity by agents, but of the retrenchment of sanctioning options on the side of principals with uniform wages. Hence, implementing limitations to contractual freedom can have efficiency-enhancing effects. |
| Keywords: | gift exchange, multiple agents, uniform contracts, collective wage, experiment |
| JEL: | C72 C91 C92 D21 J31 J50 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2012-02&r=lab |
| By: | Giles, John; Park, Albert; Cai, Fang; Du, Yang |
| Abstract: | Evidence from a range of different sources suggests that Chinese workers lost 20-36 million jobs because of the global financial crisis. Most of these layoffs affected migrant workers, who have typically lacked employment protection, tend to be concentrated in export-oriented sectors, and were among the easiest to dismiss when the crisis hit. Although it was severe, the employment shock was short-lived. By mid-2009, the macroeconomic stimulus and other interventions had succeeded in boosting demand for migrant labor. By early 2010, abundant evidence pointed to scarcity in China's labor market, as labor demand was once again leading to brisk growth in wages.The paper reviews different available sources of evidence for the effectsof the crisis, and notes the biases associated with alternative ex post efforts to measure the employment effects of the crisis. In particular, the paper highlights the usefulness of household surveys with employment histories relative to surveys based on sampling through firms. |
| Keywords: | Labor Markets,Labor Policies,Population Policies,Labor Standards,Tertiary Education |
| Date: | 2012–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5984&r=lab |
| By: | Claudia Burgard |
| Abstract: | Using the Socio-Economic Panel (SOEP), this paper investigates the determinants of training participation in Germany, distinguishing between self-initiated and employer-initiated training. Self-initiated training is considered as being a decision within households rather than purely individual. Therefore, in addition to standard training determinants, information on one’s own and partner’s time use as well as on the partner’s personal background and his job are taken into account. The results indicate that there are hardly significant gender differences in the determinants of self-initiated training while employer-initiated training of women and men appears to be determined by different factors. A decomposition analysis identifies time use variables, besides job characteristics, as important factors determining the gender gap in employer-provided training participation. |
| Keywords: | Training; time use; partner characteristics; gender differences |
| JEL: | I29 J16 J24 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0320&r=lab |
| By: | S Bradley; Jim Taylor; G Migali |
| Abstract: | We evaluate the effect on test scores of a UK education reform which has increased <br/>funding of schools and encouraged their specialisation in particular subject areas, enhancing pupil choice and competition between schools. Using several data sets, we apply cross-sectional and difference-in-differences matching models, to confront issues of the choice of an appropriate control group and different forms of selection bias. We demonstrate a statistically significant causal effect of the specialist schools policy on test score outcomes. The duration of specialisation matters, and we consistently find that the longer a school has been specialist the larger is the impact on test scores. We finally disentangle the funding effect from a specialisation effect, and the latter occurs yielding relatively large improvements in test scores in particular subjects. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:964&r=lab |
| By: | S Bradley; Jim Taylor |
| Abstract: | This paper investigates the extent to which exam performance at the end of compulsory education has been affected by three major education reforms: the introduction of a quasi-market following the Education Reform Act (1988); the specialist schools initiative introduced in 1994; and the Excellence in Cities programme introduced in 1999. We use data for all state-funded secondary schools in England over the period 1992-2006. The empirical analysis, which is based on the application of panel data methods, indicates that the government and its agencies have substantially overestimated the benefits flowing from these three major reforms. Only about one-third of the improvement in GCSE exam scores during 1992-2006 is directly attributable to the combined effect of the education reforms. The distributional consequences of the policy, however, are estimated to have been favourable, with the greatest gains being achieved by schools with the highest proportion of pupils from poor families. But there is evidence that resources have not been allocated efficiently. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:972&r=lab |
| By: | Aylitt Tina Romm |
| Abstract: | This paper uses seven waves of data from the US Health and Retirement Study to investigate the impact of expectations regarding the timing of retirement on pre-retirement wealth accumulation. More specifically, we analyze the effect of the individual's subjective belief that he will work full time after age 62 on his current level of wealth. We use the individual's perception of the usual retirement age on the job as an instrument for his subjective belief that he will work full time after age 62. We look at single women, single men and married individuals separately. On a whole, the point estimates suggest that the responsiveness of individuals saving behaviour to retirement dates expectations is large. A ten percent-age point increase in the subjective probability of working past age 62 results in a decrease in household wealth well in excess of 20% for most demographic groups. In addition, we find that, in the case of married couples in particular, there is a threshold effect in this response |
| Keywords: | Retirement timing; Subjective beliefs; Wealth |
| JEL: | E21 J26 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:266&r=lab |
| By: | Jim Taylor |
| Abstract: | This paper challenges the view held by the UK Government that the introduction of the English Baccalaureate will lead to an improvement in educational outcomes in secondary education. Evidence is presented to show that this new qualification is biased against disadvantaged pupils from low-income families, pupils with special needs, and pupils who have little inclination to study a foreign language. Furthermore, the English Baccalaureate is deeply flawed when used as a school performance indicator and should not be included in the School Performance Tables. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:963&r=lab |
| By: | Davide Furceri; Lorenzo E. Bernal-Verdugo; Dominique M. Guillaume |
| Abstract: | Using a sample of 97 countries spanning the period 1980–2008, we estimate that financial crises have a large negative impact on unemployment in the short term, but that this effect rapidly disappears in the medium term in countries with flexible labor market institutions, whereas the impact of financial crises is less pronounced but more persistent in countries with more rigid labor market institutions. These effects are even larger for youth unemployment in the short term and long-term unemployment in the medium term. Conversely, large upfront, or gradual but significant, comprehensive labor market policies have a positive impact on unemployment, albeit only in the medium term. |
| Date: | 2012–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/65&r=lab |
| By: | Ellguth, Peter (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Gerner, Hans-Dieter (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Stegmaier, Jens (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "German employment relations are characterized by a distinct dual system: First, working conditions and wages are determined by industry level collective bargaining agreements. Second, on the establishment level the works council is responsible for employer-employee negotiations. But since the mid-1980s more and more areas of regulation were transferred from the industry to the establishment level using so called opening-clauses. Our analysis relies on rich German establishment data and reveals new insights in the institutional machinery of wage bargaining: While the existence of such clauses is related to higher wages (11 %), their application results in wages cuts of roughly the same size. Regarding works councils our results suggest that they are able to prevent negative wage effects of opening clauses on average." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Tarifverhandlungen, Tarifvertrag, Betriebsrat, Lohnfindung, Öffnungsklausel, IAB-Betriebspanel |
| JEL: | J53 J31 |
| Date: | 2012–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201205&r=lab |
| By: | Pfeifer, Christian (Leuphana University Lüneburg); Wagner, Joachim (Leuphana University Lüneburg) |
| Abstract: | This empirical paper documents the relationship between composition of a firm's workforce (with a special focus on age and gender) and its performance (productivity and profitability) for a large representative sample of enterprises from manufacturing industries in Germany. We use unique newly available data that for the first time combine information from the statistics of employees covered by social security that is aggregated at the enterprise level and information from enterprise level surveys performed by the Statistical Offices. Our micro-econometric analysis confirms previous findings of concave age-productivity profiles, which are consistent with human capital theory, and adds a new finding of a rather negative effect of age on firms' profitability, which is consistent with deferred compensation considerations. Moreover, our analysis reveals for the first time that the ceteris paribus lower level of productivity in firms with a higher share of female employees does not go hand in hand with a lower level of profitability in these firms. If anything, profitability is (slightly) higher in firms with a larger share of female employees. This finding might indicate that lower productivity of women is (over)compensated by lower wage costs for women, which might be driven by general labor market discrimination against women. |
| Keywords: | ageing, firm performance, gender, productivity, profitability, Germany |
| JEL: | D22 D24 J21 J24 L25 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6381&r=lab |
| By: | Ronald Bachmann; Daniel Baumgarten |
| Abstract: | Using harmonized micro data, this paper investigates the job search methods of the unemployed in Europe. The analysis focuses on the importance of individual and household characteristics in this context, as well as on cross-country differences in Europe. Our findings suggest that both individual and household characteristics play an important role, with the latter being more decisive for women. However, even when controlling for these factors, remarkable differences remain between countries, which are associated with institutional characteristics at the country level. |
| Keywords: | Job search; search channels |
| JEL: | J20 J64 C38 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0312&r=lab |
| By: | Mano, Yukichi; Yamamura, Eiji |
| Abstract: | Japanese household-level data describing a husband's earnings, his wife's working status, and their schooling levels are used to test the implications of a model proposing a time-consuming process of human capital accumulation within marriages, in which an educated wife is more productive. The empirical results support the model’s predictions: in particular (i) a non-working wife's schooling has a greater positive effect on her husband's earnings than a working wife’s schooling; and (ii) the effect of a non-working wife's schooling increases with the length of marriage, whereas the effect of a working wife’s schooling does not change over the course of marriage. |
| Keywords: | Human capital; wife's working status |
| JEL: | D13 J24 |
| Date: | 2012–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37247&r=lab |
| By: | Keisuke Kondo (Graduate School of Economics, Kobe University); Toshihiro Okubo (Faculty of Economics, Keio University) |
| Abstract: | This paper empirically tests relationships among interregional labour migration, wage, and real market potential (RMP) based on a multi-region economic geography model, which describes bilateral migration flows. We estimate a nonlinear gravity model using manufacturing workers' migration flows across the 47 Japanese prefectures. Estimates of structural parameters enable us to compute key variables of the model: price index, RMP, and real wage. We show that higher RMP regions can offer higher nominal wages. Furthermore, we find that an increase in the relative real wage of a region brings about a net increase in workers into the region. |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:kei:dpaper:2011-040&r=lab |
| By: | Kohei Daido (School of Economics, Kwansei Gakuin University); Ken Tabata (School of Economics, Kwansei Gakuin University) |
| Abstract: | We build a general equilibrium model of monopolistic competition with moral hazard contracting to examine the interactions among skill-biased technological change (SBTC), organizational changes, and skill premium and within-group wage inequality. While the existing literature finds that the increase in the skilled labor ratio induces SBTC and raises the skill premium, we show that SBTC leads to organizational change toward decentralization by delegating authority within firms, which inuences the reward schedule for delegated skilled managers. This organizational change results in the following: (1) the further increase in the skill premium and (2) the rapid expansion of wage inequality among skilled individuals (between skilled workers and skilled managers). Moreover, we find that there are multiple equilibria where the centralized and decentralized organizational modes simultaneously emerge at the intermediate values of the skilled labor ratio. |
| Keywords: | Decentralization, Moral Hazard, Skill-Biased Technological Change, Skill Premium, Within-Group Wage Inequality |
| JEL: | D86 J31 L16 L22 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:84&r=lab |
| By: | Philipp an de Meulen |
| Abstract: | Following the notion of skill-biased FDI flows from developed to less developed regions, high-skilled workers are likely to benefit from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional conflict that might turn into heterogeneous attitudes toward FDI inflows in line with skill. In this paper I study the effect of less developed countries’ skill compositions on the risk of expropriation. Not surprisingly, it turns out that the risk of expropriation decreases with a larger employment share of high-skilled workers. However, in a theoretical model, the effect is diminishing and even turns negative in the empirical investigation - if the relative supply of high-skilled labor is too large, the skilled wage premium turns negative despite the skill-bias of FDI. Then, high-skilled workers’ positive attitudes toward FDI vanish. |
| Keywords: | International investment; political economy; labor productivity |
| JEL: | F21 D78 J24 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0298&r=lab |
| By: | Godo, Yoshihisa |
| Abstract: | This paper provides long-term detailed estimates for Taiwan’s education stock. The average number of years of schooling per person by gender, age group, and level and type of education are estimated for 1888-1940 and 1947-2000. This is the first extension of Godo’s (2011) dataset, which contains nearly 100-year annual estimates on education stock for Japan, Korea, and the US. The definition and methodology in this paper follow those of Godo (2011). |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2011-12&r=lab |
| By: | William Walker |
| Abstract: | New environmental regulations lead to a rearrangement of production away from polluting industries, and workers in those industries are adversely affected. This paper uses linked worker-firm data in the United States to estimate the transitional costs associated with reallocating workers from newly regulated industries to other sectors of the economy. The focus on workers rather than industries as the unit of analysis allows me to examine previously unobserved economic outcomes such as non-employment and long run earnings losses from job transitions, both of which are critical to understanding the reallocative costs associated with these policies. Using panel variation induced by the 1990 Clean Air Act Amendments (CAAA), I find that the reallocative costs of environmental policy are significant. Workers in newly regulated plants experienced, in aggregate, more than $9 billion inforegone earnings for the years after the change in policy. Most of these costs are driven by non-employment and lower earnings in future employment, while earnings of workers who remain with their firm change little. Relative to the estimated benefits of the 1990 CAAA, these one-time transitional costs are small. However, the estimated costs far exceed the workforce compensation policies designed to mitigate some of these earnings losses. |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:12-02&r=lab |
| By: | Godo, Yoshihisa |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:hit:primdp:20&r=lab |
| By: | Campos, Raymundo; Lustig, Nora |
| Abstract: | Inequality in Mexico rose between 1989 and 1994 and declined between 1994 and 2010. We examine the role of market forces (demand and supply of labour by skill), institutional factors (minimum wages and unionization rate), and public policy (cash transfers) in explaining changes in inequality. We apply the â..re-centred influence functionâ.. method to decompose changes in hourly wages into characteristics and returns. The main driver is changes in returns. Returns rose (1989-94) due to institutional factors and labour demand. Returns declined (1994-2006) due to changes in supply and, to a lesser extent, in demand; institutional factors were not relevant. Government transfers contributed to the decline in inequality, especially after 2000. |
| Keywords: | inequality, wages, disposable income, labour markets, Mexico |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2012-10&r=lab |
| By: | Jens Mohrenweiser (Zentrum für Europäische Wirtschaftsforschung Mannheim (ZEW) (Centre for European Economic Research)) |
| Abstract: | This paper describes the recruitment of switching apprenticeship graduates and investigates differences between training and non-training firms. Training firms are more likely to hire apprenticeship graduates trained elsewhere than non-training firms, and if they hire them, they hire a larger proportion of them. 85.5 per cent of firms that hire switching apprenticeship graduates train themselves. This result holds for all types of switching apprenticeship graduates (immediate movers, occupational changers, switchers with an unemployment spell). In total, only four per cent of apprenticeship graduates find their first job in non-training firms. |
| Keywords: | recruiting, apprenticeship, company-sponsored training, training participation |
| JEL: | J24 J62 M51 M53 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0073&r=lab |
| By: | Siew Yean Tham (Asian Development Bank Institute (ADBI)) |
| Abstract: | Private higher education institutions (PrHEIs) are utilized to complement public provision due to financial constraints faced in public provision. However, increasing private provision has raised interesting questions as to who gets educated in these PrHEIs. Is increasing private supply enlarging the circle of opportunity to reach those who might otherwise have been unable to enter university or college? In other words, has the explosion in private supply translated into greater inclusion or increased exclusion? This paper explores the access and equity issues in Malaysia’s private higher education system. Malaysia is an interesting case study due to the significant presence of PrHEIs in the country and their contribution toward student enrolment. The findings show that the Malaysian government has provided considerable financial support for the development of PrHEIs, through the provision of incentives, subsidized loans, and scholarships. Quality assurance efforts further enhance the development of private provision, as student loans and scholarships are only provided for students on accredited programs. Therefore, PrHEIs have widened access and equity, with the help of government support. Despite this, Malaysia’s model of providing access and equity through private provision may be unsustainable, due to the poor repayment record of student loans and the economic need to reduce the fiscal deficit of the government. |
| Keywords: | Private Higher Education, Malaysia, private supply of education |
| JEL: | H44 H52 I23 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:23256&r=lab |
| By: | Siew Yean Tham (Asian Development Bank Institute (ADBI)) |
| Abstract: | Private higher education institutions (PrHEIs) are utilized to complement public provision due to financial constraints faced in public provision. However, increasing private provision has raised interesting questions as to who gets educated in these PrHEIs. Is increasing private supply enlarging the circle of opportunity to reach those who might otherwise have been unable to enter university or college? In other words, has the explosion in private supply translated into greater inclusion or increased exclusion? This paper explores the access and equity issues in Malaysia’s private higher education system. Malaysia is an interesting case study due to the significant presence of PrHEIs in the country and their contribution toward student enrolment. The findings show that the Malaysian government has provided considerable financial support for the development of PrHEIs, through the provision of incentives, subsidized loans, and scholarships. Quality assurance efforts further enhance the development of private provision, as student loans and scholarships are only provided for students on accredited programs. Therefore, PrHEIs have widened access and equity, with the help of government support. Despite this, Malaysia’s model of providing access and equity through private provision may be unsustainable, due to the poor repayment record of student loans and the economic need to reduce the fiscal deficit of the government. |
| Keywords: | Private Higher Education, Malaysia, private supply of education |
| JEL: | H44 H52 I23 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:eab:develo:23256&r=lab |
| By: | Christopher J. O’Leary; Randall W. Eberts; Brian M. Pittelko |
| Abstract: | The signing of the North American Free Trade Agreement (NAFTA) was a contentious event in United States (US) politics, in particular with respect to public views about the possible labour market effects. This paper is structured as follows. First, we provide background on the political debate in the United States at the time of the signing of NAFTA. We then outline the dynamics of trade and employment among the NAFTA partners over the last 20 years. The third section provides a literature review that summarises estimates of NAFTA’s employment impact, both shortly before its implementation and afterwards. Against this background, we provide an overview and assessment of US employment policy responses aimed at facilitating labour-market adjustment and support of trade-displaced workers. |
| Date: | 2012–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:131-en&r=lab |
| By: | Cristia, Julián P. (Inter-American Development Bank); Ibarrarán, Pablo (Inter-American Development Bank); Cueto, Santiago (GRADE); Santiago, Ana (Inter-American Development Bank); Severín, Eugenio (Inter-American Development Bank) |
| Abstract: | Although many countries are aggressively implementing the One Laptop per Child (OLPC) program, there is a lack of empirical evidence on its effects. This paper presents the impact of the first large-scale randomized evaluation of the OLPC program, using data collected after 15 months of implementation in 319 primary schools in rural Peru. The results indicate that the program increased the ratio of computers per student from 0.12 to 1.18 in treatment schools. This expansion in access translated into substantial increases in use both at school and at home. No evidence is found of effects on enrollment and test scores in Math and Language. Some positive effects are found, however, in general cognitive skills as measured by Raven's Progressive Matrices, a verbal fluency test and a Coding test. |
| Keywords: | education, technology, experiments |
| JEL: | C93 I21 I28 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6401&r=lab |
| By: | Thomas Breda (CEP - Centre for Economic Performance - LSE); Son Thierry Ly (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | Stereotypes, role models played by teachers and social norms are known to push girls to choose humanities rather than science. Do professors directly contribute to this strong selection by discriminating more against girls in more scientific subjects? Using the entrance exam of a French higher education institution (the Ecole Normale Supérieure) as a natural experiment, we show the opposite: discrimination goes in favor of females in more male-connoted subjects (e.g. math, philosophy) and in favor of males in more female-connoted subjects (e.g. literature, biology), inducing a rebalancing of sex ratios between science and humanities majors. We identify discrimination by systematic differences in students' scores between oral tests (non-blind toward gender) and anonymous written tests (blind toward gender). By making comparisons of these oral/written scores differences between different subjects for a given student, we are able to control both for a student's ability in each subject and for her overall ability at oral exams. The mechanisms likely to drive this positive discrimination toward the minority gender are also discussed. |
| Keywords: | Discrimination ; Gender Stereotypes ; Natural Experiment ; Sex and Science |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00677438&r=lab |
| By: | Pedro Silos; Eric Smith |
| Abstract: | This paper assesses the trade-off between acquiring specialized skills targeted for a particular occupation and acquiring a package of skills that diversifies risk across occupations. Individual-level data on college credits across subjects and labor-market dynamics reveal that diversification generates higher income growth for individuals who switch occupations whereas specialization benefits those who stick with one type of job. A human capital portfolio choice problem featuring skills, abilities, and uncertain labor outcomes replicates this general pattern and generate a sizable amount of inequality. Policy experiments illustrate that forced specialization generates lower average income growth and lower turnover, but also lower inequality. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:2012-03&r=lab |
| By: | Michele Campolieti (Department of Management, University of Toronto Scarborough); Deborah Gefang (Department of Economics, Lancaster University) |
| Abstract: | VAR methods have been used to model the inter-relationships between infl‡ows and outfl‡ows into unemployment and vacancies using tools such as impulse response analysis. In order to investigate whether such impulse responses change over the course of the business cycle or over time, this paper uses TVP-VARs for US and Canadian data. For the US, we …find interesting differences between the most recent recession and earlier recessions and expansions. In particular, we …find the immediate effect of a negative shock on both infl‡ow and outfl‡ow hazards to be larger in 2008 than in earlier times. Furthermore, the effect of this shock takes longer to decay. For Canada, we …find less evidence of time-variation in impulse responses. |
| Keywords: | unemployment hazards, labor market dynamics, time-varying parameter VAR, sign-restricted impulse responses |
| JEL: | J64 J63 C32 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:1138&r=lab |
| By: | Stéphan Vincent-Lancrin; Sebastian Pfotenhauer |
| Abstract: | The Guidelines for Quality Provision in Cross-border Higher Education were developed and adopted to support and encourage international cooperation and enhance the understanding of the importance of quality provision in cross-border higher education. The purposes of the Guidelines are to protect students and other stakeholders from low-quality provision and disreputable providers (that is, degree and accreditation mills) as well as to encourage the development of quality cross-border higher education that meets human, social, economic and cultural needs. Based on a survey about the main recommendations of the Guidelines, this report monitors the extent to which OECD countries and a few non-member partners complied with its recommendations in 2011. Twenty-three responses were obtained from 22 Members. |
| Date: | 2012–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaab:70-en&r=lab |
| By: | Fitzenberger, Bernd (University of Freiburg); Leuschner, Ute (University of Freiburg) |
| Abstract: | Academic careers in Germany have been under debate for a while. We conduct a survey among postdocs in Germany, to analyze the perceptions and attitudes of postdocs regarding their research incentives, their working conditions, and their career prospects. We conceptualize the career prospects of a postdoc in a life-cycle perspective of transitions from academic training to academic or non-academic jobs. Only about half of the postdocs sees strong incentives for academic research, but there is quite a strong confidence to succeed in an academic career. Furthermore, postdocs who attended a PhD program show better career prospects and higher research incentives compared to others. Academic career prospects and motivation are strongest for assistant professors. Apart from this small group, however, postdocs report only a small impact of the university reforms of the last decade. Female postdocs show significantly higher research incentives but otherwise we find little gender differences. Finally, good prospects in non-academic jobs are not associated with a reduction in the motivation for research. |
| Keywords: | postdocs, academic career prospects, research incentives, university reforms |
| JEL: | A11 A29 I21 I23 J24 J49 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6407&r=lab |
| By: | Bowen, Alex |
| Abstract: | The term'green jobs'can refer to employment in a narrowly defined set of industries providing environmental services. But it is more useful for the policy-maker to focus on the broader issue of the employment consequences of policies to correct environmental externalities such as anthropogenic climate change. Most of the literature focuses on direct employment created, with more cursory treatment of indirect and induced job creation, especially that arising from macroeconomic effects of policies. The potential adverse impacts of green growth policies on labor productivity and the costs of employment tend to be overlooked. More attention also needs to be paid in this literature to how labor markets work in different types of economy. There may be wedges between the shadow wage and the actual wage, particularly in developing countries with segmented labor markets and after adverse aggregate demand shocks, warranting a bigger and longer-lasting boost to green projects with high labor content. In these circumstances, the transition to green growth and job creation can go hand in hand. But there are challenges, especially for countries that have built their industrial development strategies around cheap carbon-based energy. Induced structural change, green or otherwise, should be accompanied by active labor market policies. |
| Keywords: | Environmental Economics&Policies,Climate Change Mitigation and Green House Gases,Labor Markets,Climate Change Economics,Labor Policies |
| Date: | 2012–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5990&r=lab |
| By: | Charisse A. Gulosin (Columbia University); Elif Sisli-Ciamarra (International Business School, Brandeis University) |
| Abstract: | This study uses a hand-collected dataset for charter school boards in Massachusetts between 2001 and 2009 to examine the relationship between financial performance and the presence of founders and financially affiliated directors. School-level financial performance suggests that founder presence on a board has a negative effect on both financial and academic performance of a charter school. On the other hand, the presence of financially affiliated directors on the charter school governing board is positively related to financial performance, but unrelated to academic achievement. The results are consistent with the literature on corporate and nonprofit boards that have attributed financially affiliated directors with greater incentives to monitor financial targets, while founders are less likely to achieve performance expectations. |
| Keywords: | Charter schools, Board governance, Financial performance, Achievement |
| JEL: | H75 I20 L29 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:brd:wpaper:42&r=lab |
| By: | Naci Mocan; Duha T. Altindag |
| Abstract: | Using data from NLSY97 we analyze the impact of education on health behavior. Controlling for health knowledge does not influence the impact of education on health behavior, supporting the productive efficiency hypothesis. Although cognition, as measured by test scores, appears to have an effect on the relationship between education and health behavior, this effect disappears once the models control for family fixed effects. Similarly, the impact of education on health behavior is the same between those with and without a learning disability, suggesting that cognition is not likely to be a significant factor in explaining the impact of education on health behavior. |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:abn:wpaper:auwp2012-01&r=lab |
| By: | Jaison R. Abel; Todd M. Gabe; Kevin Stolarick |
| Abstract: | This paper examines differences in the skill content of work throughout the United States, ranging from densely populated city centers to isolated and sparsely populated rural areas. To do so, we classify detailed geographic areas into categories along the entire urban-rural hierarchy. An occupation-based cluster analysis is then used to measure the types of skills available in the regional workforce, which allows for a broader measure of human capital than is captured by conventional measures. We find that the occupation clusters most prevalent in urban areas—scientists, engineers, and executives—are characterized by high levels of social and resource-management skills, as well as the ability to generate ideas and solve complex problems. By contrast, the occupation clusters that are most prevalent in rural areas—machinists, makers, and laborers—are among the lowest in terms of required skills. These differences in the skill content of work shed light on the pattern of earnings observed across the urban-rural hierarchy. |
| Keywords: | Demography ; Labor supply ; Population ; Human capital ; Wages ; Rural areas ; Urban economics |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:552&r=lab |
| By: | J. David Brown; Julie L. Hotchkiss; Myriam Quispe-Agnoli |
| Abstract: | Using administrative data from the state of Georgia, this paper finds that on average, among all firms, employing undocumented workers reduces a firm's hazard of exit by 19 percent. However, the impact varies greatly across sectors. In addition, a firm is at a distinct disadvantage if it does not employ undocumented workers but its rivals do. The advantage to employing undocumented workers increases as more firms in the industry do so. In addition, the advantage to a firm from employing undocumented workers decreases with the skill level of the firm's workers, increases with the breadth of a firm's market, and increases with the labor intensity of the firm's production process. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:2012-02&r=lab |
| By: | Jahn, Elke J. (Institute for Employment Research (IAB), Nuremberg); Rosholm, Michael |
| Abstract: | We investigate whether agency employment is a bridge into regular employment for immigrants to Denmark using the timing-of-events approach. We provide evidence of large positive in-treatment effects, particularly for non-western immigrants and immigrants arriving during childhood. Post-treatment effects are fairly high for male non-western immigrants and immigrants from Eastern Europe. |
| Keywords: | immigrants, temporary agency employment, stepping stone |
| JEL: | J61 J64 J68 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6405&r=lab |
| By: | Sébastien Massoni (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon Sorbonne); Jean-Christophe Vergnaud (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon Sorbonne) |
| Abstract: | The Action Lecture program is an innovative teaching method run in some nursery and primary schools in Paris and designed to improve pupils' literacy. We report the results of an evaluation of this program. We describe the experimental protocol that was built to estimate the program's impact on several types of indicators. Data were processed following a Differences-in-Differences (DID) method. Then we use the estimation of the impact on academic achievement to conduct a cost-effectiveness analysis and take a reduction of the class size program as a benchmark. The results are positive for the Action Lecture program. |
| Keywords: | Costs; Educational economics; Efficiency; Resource allocation |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-00676515&r=lab |
| By: | José Alcalde Pérez (Universidad de Alicante); Begoña Subiza Martínez (Universidad de Alicante) |
| Abstract: | This paper proposes a reform for school allocation procedures in order to help integration policies reach their objective. For this purpose, we suggest the use of a natural two-step mechanism. The (stable) first step is introduced as an adaptation of the deferred-acceptance algorithm designed by Gale and Shapley (1962), when students are divided into two groups. The (efficient) second step captures the idea of exchanging places inherent to Gale’s Top Trading Cycle. This latter step could be useful for Municipal School Boards when implementing some integration policies. |
| Keywords: | Integration Policy, School Allocation, Affirmative Action |
| JEL: | C72 I28 J18 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2012-06&r=lab |
| By: | Aloña Martiarena |
| Abstract: | This paper examines and tests how the composition of human capital that workers acquire on-the-job determines the decision to found spinoffs and the know-how that entrepreneurs exploit in the new firm. I argue that given the different degree of specialisation in small and large firms, entrepreneurs emerging from small firms transfer knowledge from more diverse aspects of the business and create spinoffs more related to the main activity of the incumbent firm. Workers in large firms, however, benefit from higher returns to human capital that increase their opportunity costs to switch to an occupation that requires a different combination of skills. Since becoming an entrepreneur implies performing multiple tasks and makes part of their specialised skills unutilised, the minimum quality of the business idea at which they are willing to reveal the discovery is higher and, therefore, entrepreneurs emerging from large firms are of highest quality. |
| Keywords: | Spinoffs ; enrepreneurship ; human caital ; on-the-job learning ; firm performance |
| JEL: | L25 L26 J31 J33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:12-04&r=lab |