nep-lab New Economics Papers
on Labour Economics
Issue of 2013‒06‒24
28 papers chosen by
Erik Jonasson
National Institute of Economic Research

  1. Do immigrants take or create residents’ jobs? Quasi-experimental evidence from Switzerland By Christoph Basten; Michael Siegenthaler
  2. Multitasking and Wages By Snower, Dennis J.; Goerlich, Dennis
  3. New firms and labor market entrants: Is there a wage penalty for employment in new firms? By Nyström, Kristina; Elvung, Gulzat Zhetibaeva
  4. Are You Unhappy Having Minority Co-Workers? By Haile, Getinet Astatike
  5. Does Part-Time Employment Widen the Gender Wage Gap? Evidence from Twelve European Countries By Eleonora Matteazzi; Ariane Pailhé; Anne Solaz
  6. Salient Gender Difference in the Wage Elasticity of General Practitioners' Labour Supply By Chunzhou Mu; Shiko Maruyama
  7. Bullying at School and Labour Market Outcomes By Drydakis, Nick
  8. Efficient Learning and Job Turnover in the Labor Market By Fei Li
  9. Stature and Life-Time Labor Market Outcomes: Accounting for Unobserved Differences By Böckerman, Petri; Vainiomäki, Jari
  10. National minimum wage and employment of young workers in the UK By Jan Fidrmuc; J. D. Tena
  11. Constrained vs Unconstrained Labor Supply: The Economics of Dual Job Holding By RENNA Francesco; OAXACA Ronald L.; CHOE Chung
  12. Gender complementarities in the labor market By Giacomo De Giorgi; Marco Paccagnella; Michele Pellizzari
  13. Educational Attainment and Labour Market Outcomes in South Africa, 1994-2010 By Nicola Branson; Murray Leibbrandt
  14. The Shadow Value of Legal Status--A Hedonic Analysis of the Earnings of U.S. Farm Workers By Wang, Sun Ling; Carroll, Daniel; Nehring, Richard; McGath, Christopher
  15. Trade Liberalization and Skill Premium in Chile By Yoshimichi Murakami
  16. Determinants of labor market gender inequalities in Cameroon, Senegal and Mali: the role of human capital and the fertility burden By KUEPIE Mathias; DZOSSA Anaclet Désiré; KELODJOUE Samuel
  17. Labour Market and Social Policies to Foster More Inclusive Growth in Sweden By Stéphanie Jamet; Thomas Chalaux; Vincent Koen
  18. Benefits of Education at the Intensive Margin: Childhood Academic Performance and Adult Outcomes among American Immigrants By Deniz Gevrek; Z. Eylem Gevrek; Cahit Guven
  19. Socioeconomic background, human capital and youth employment: the case of a medium-sized Cameroonian city (Bafia) By KUEPIE Mathias; NOUETAGNI Samuel
  20. Returns to Investment in Education in Urban China: Are there gender differences? By Wang, Donghui
  21. A Model of Worker Investment in Safety and Its Effects on Accidents and Wages By Guardado, José R.; Ziebarth, Nicolas R.
  22. Entrepreneurship Dynamics: Entry Routes, Business-Owner's Persistence and Exit Modes By Vera Rocha; Anabela Carneiro; Celeste Amorim Varum
  23. Market Openness and Culture as Factors that Shape the Gender Gap: a Comparative Study of Urban Latin America and East Asia (1960-2000) By Enriqueta Camps
  24. Education Quality and Labour Market Outcomes in South Africa By Nicola Branson; Murray Leibbrandt
  25. Earnings Growth of Mexican Immigrants: New versus Traditional Destinations By Kaushal, Neeraj; Shang, Ce
  26. What can wages and employment tell us about the UK's productivity puzzle? By Richard Blundell; Claire Crawford; Wenchao (Michelle) Jin
  27. Moving Towards a Single Labour Contract: Pros, Cons and Mixed Feelings By Nicolas Lepage-Saucier; Juliette Schleich; Etienne Wasmer
  28. Poaching and firm-sponsored training: First clean evidence By Mohrenweiser, Jens; Zwick, Thomas; Backes-Gellner, Uschi

  1. By: Christoph Basten (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Michael Siegenthaler (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: We estimate the causal effect of immigration on the labor market outcomes of resident employees in Switzerland, whose foreign labor force has increased by 32.8% in the last decade. To address endogeneity of immigration into different labor market cells, we develop new variants of the shift-share instrument, tailored for small-open economies, that exploit only that part in the variation of immigration which can be explained by migration push-factors in the source countries. We find that immigration has reduced unemployment of residents and has enabled them to fill more demanding jobs, while it had no adverse effect on wages and employment.
    Keywords: Immigration, native employment, labor shortage, shift-share instrument
    JEL: F22 J21 J61
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:kof:wpskof:13-335&r=lab
  2. By: Snower, Dennis J. (Kiel Institute for the World Economy); Goerlich, Dennis (Kiel Institute for the World Economy)
    Abstract: This paper sheds light on how changes in the organization of work can help to understand increasing wage inequality. We present a theoretical model in which workers with a wider span of competence (higher level of multitasking) earn a wage premium. Since abilities and opportunities to expand the span of competence are distributed unequally among workers across and within education groups, our theory helps to explain (1) rising wage inequality between groups, and (2) rising wage inequality within groups. Under certain assumptions, it also helps to explain (3) the polarization of the income distribution. Using a rich German data set covering a 20-year period from 1986 to 2006, we provide empirical support for our model.
    Keywords: wage inequality, multitasking, tasks, organizational change
    JEL: J31 J24 L23
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7426&r=lab
  3. By: Nyström, Kristina (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Elvung, Gulzat Zhetibaeva (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: In this paper, we explore the role of new firms as an entry point to the labor market. Because the vast majority of new firms are short-lived, it is a risky decision to accept employment in a new venture. It can be argued that individuals with little (or no) labor market experience are more willing to accept the high risks associated with employment in new firms. Hence, new firms may work as an entry point to the labor market. Nevertheless, some research concludes that one disadvantage of employment in a new firm is that new firms pay less (Shane, 2009). However, this empirical conclusion is primarily based on literature on the wage penalty of small firms. In this paper, we study whether the wage penalty of employment in a new firm persists if we focus solely on labor market entrants. In the empirical analysis, we employ an employer-employee matched dataset that covers the Swedish population during the period from 1998-2008. We use the Propensity Score Matching (PSM) method to study the wage differences between labor market entrants employed in new and incumbent firms. We find an average wage penalty of 2.9 percent for labor market entrants employed in new firms over the studied period.
    Keywords: new firms; labor market entrants; wage penalty; propensity score matching; average treatment effect
    JEL: C21 J21 J31 M13
    Date: 2013–06–14
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0319&r=lab
  4. By: Haile, Getinet Astatike (University of Nottingham)
    Abstract: This paper attempts to establish empirically whether natives' job satisfaction is adversely affected by having minority co-worker(s). The paper uses nationally representative linked employer-employee data and eight different facets of job satisfaction. Measuring minority co-worker status at the workplace- and occupation-level and employing alternative econometric estimators; the paper finds that on average natives' experience a reduction in job satisfaction due to having minority co-worker(s). The effect found is larger if the co-worker-ship is at the occupation-level.
    Keywords: discrimination, job-related well-being, linked employer-employee data, Britain
    JEL: J7 J15 J82 I31
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7423&r=lab
  5. By: Eleonora Matteazzi (University of Verona); Ariane Pailhé (INED); Anne Solaz (INED)
    Abstract: One of five workers work part-time in Europe, mainly women. This article examines the extent to which the overrepresentation of women in part-time employment explains the gender hourly earnings gap in twelve European countries. Using the EU-SILC 2009 data, a double decomposition of the gender wage gap is implemented: between men and women employed full-time and between full-time and part-time working women. The high prevalence of part-time employment plays only a minor role. The nature of part-time employment and labor market segregation are much more important factors. A large share of the gender wage gap still remains unexplained, however.
    Keywords: labor force participation, working hours, wage gap, decomposition, segregation, part-time
    JEL: C31 C49 J21 J22 J24 J31 J71
    Date: 2013–03
    URL: http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2013-293&r=lab
  6. By: Chunzhou Mu (School of Economics, the University of New South Wales and Centre for Health Economics Research and Evaluation, University of Technology Sydney); Shiko Maruyama (ARC Centre of Excellence in Population Ageing Research, the University of New South Wales)
    Abstract: Recent years have witnessed a growing proportion of female general practitioners (GPs) worldwide. Because female GPs tend to work fewer hours than male GPs, this continuing trend may accelerate the shortage of GPs. This paper investigates the gender difference in the wage elasticity of Australian GPs by maximum likelihood estimation of labour supply and wage equations. Quantitative information regarding the labour supply responses of GPs is vital in designing eective policies. The results show salient gender difference. An increase in hourly wage increases the labour supply of male GPs and reduces the labour supply of female GPs, resulting in an enlarged gender dierence in labour supply. The results also suggest that family factors still remain a key driving force of the reduced labour supply of Australian female GPs.
    Keywords: General Practitioners; female labour supply; gender gap; wage elasticity; income effect
    JEL: I11 J31
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:swe:wpaper:2013-16&r=lab
  7. By: Drydakis, Nick (Anglia Ruskin University)
    Abstract: This study examines the long-term correlates of bullying in school with aspects of functioning in adult employment outcomes. Bullying is considered and evaluated as a proxy for unmeasured productivity, and a framework is provided that outlines why bullying might affect employment outcomes through differences in skills and traits. Using Bivariate and Heckit models we employ a variety of specifications and find several interesting patterns. The regression outcomes suggest that labour force participation, employment rate and hourly wages are negatively affected by bullying. In addition, men, homosexuals, immigrants, unmarried people, those having higher negative mental health symptoms, and those having lower human capital are more negatively affected by bullying in terms of labour force participation, employment probability, and hourly wages. Moreover, Oaxaca-Blinder decompositions suggest that labour force participation gaps, employment gaps and hourly wage gaps between minority and majority groups, especially for gay men and the disabled, can be explained by bullying incidents. It seems likely that having been a victim of bullying also has economic implications later in life due to withdrawal from the labour market and lower wages.
    Keywords: bullying, personality traits and processes, human capital, labour force, employment, wages
    JEL: E24 J21 J24
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7432&r=lab
  8. By: Fei Li (Department of Economics, University of Pennsylvania)
    Abstract: This paper studies the dynamics of workers. on-the-job search behavior and its consequences in an equilibrium labor market. In a model with both directed search and learning about the match quality of firm-worker pairs, I highlight the job search target effect of learning: as a worker updates the evaluation of his current job, he adjusts his on-the-job search target, which results in a different job finding rate. This model generates a non-monotonic relation between the employment-to-employment transition rate and tenure, which provides a new explanation of the hump-shaped separation rate-tenure profile
    Keywords: Learning, Directed Search, Job Turnover, On-the-job Search, Employment-to-employment Transition
    JEL: D83 J31
    Date: 2013–04–19
    URL: http://d.repec.org/n?u=RePEc:pen:papers:13-023&r=lab
  9. By: Böckerman, Petri (Labour Institute for Economic Research); Vainiomäki, Jari (University of Tampere)
    Abstract: We use twin data matched to register-based individual information on earnings and employment to examine the effect of height on life-time labor market outcomes. The use of twin data allows us to remove otherwise unobserved ability and other differences. The twin pair difference estimates from instrumental variables estimation for genetically identical twins reveal a significant height-wage premium for women but not for men. This result implies that cognitive ability explains the effect of height on life-time earnings for men. Additional findings using capital income as the outcome variable suggest that discrimination against short persons may play a role for women.
    Keywords: height, weight, BMI, height premium, earnings, employment
    JEL: I10 J23 J31
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7424&r=lab
  10. By: Jan Fidrmuc; J. D. Tena
    Abstract: We analyze the impact of the UK national minimum wage (NMW) on the employment of young workers. The previous literature found little evidence of an adverse impact of the NMW on the UK labor market. We focus on the age-related increases in the NMW at 18 and 22 years of age. Using regression discontinuity design, we fail to find any effect of turning 22. However, we find a significant and negative employment effect for male workers at 21, which we believe to be an anticipation effect. We also find a negative effect for both genders upon turning 18. The age-related NMW increases may have an adverse effect on employment of young workers, with this effect possibly occurring already well in advance of reaching the threshold age.
    Keywords: minimum wage, employment, young workers, regression discontinuity design
    JEL: J21 J31
    Date: 2013–06–18
    URL: http://d.repec.org/n?u=RePEc:cel:dpaper:12&r=lab
  11. By: RENNA Francesco; OAXACA Ronald L.; CHOE Chung
    Abstract: This paper develops a uni?ed model of dual and unitary job holding based on a Stone-Geary utility function. The model incorporates both constrained and unconstrained labor supply. Panel data methods are adapted to accommodate multinomial selection into 6 mutually exclusive labor supply regimes. We derive and estimate the associated Slutsky equation wage and income elasticities using data from the British Household Panel Survey 1991- 2008. Our study ?nds that the income and wage elasticities are much larger for labor supply to job 2 compared with job 1.
    Keywords: dual job; labor supply; Stone-Geary
    JEL: J22
    Date: 2013–03
    URL: http://d.repec.org/n?u=RePEc:irs:cepswp:2013-03&r=lab
  12. By: Giacomo De Giorgi (Stanford University, BREAD, CEPR and NBER); Marco Paccagnella (Bank of Italy and fRDB); Michele Pellizzari (OECD, University of Geneva and IZA)
    Abstract: In this paper we estimate the short-run elasticity of substitution between male and female workers, using data on employment and wages from Italian provinces from 1993-2006. We adopt a production function approach similar to that of Card and Lemieux (2001a) and Acemoglu, Autor and Lyle (2004). Our identification strategy relies on a natural experiment. In 2000 the Italian parliament passed a law to abolish compulsory military service; the reform was implemented through a gradual reduction in the number of draftees, and compulsory drafting was definitively terminated in 2004. We use data on the (planned) maximum number of draftees at the national level (as stated in the annual budgetary law), interacted with sex-ratios at birth at the provincial level, as instruments for (relative) female labor supply. Our results suggest that young males and females are imperfect substitutes, with an elasticity of substitution ranging between 1.1 and 1.6. Our results have implications for the evaluation of policies aimed at increasing female labor market participation, suggesting that they do not necessarily displace male employment.
    Keywords: gender complementarities, elasticity of substitution, employment, wages
    JEL: J21 J31 J16
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:bdi:opques:qef_183_13&r=lab
  13. By: Nicola Branson; Murray Leibbrandt
    Abstract: In this paper we document the impact of education levels on labour market outcomes from 1994 to 2010 using national household survey data. We show that higher levels of education are strongly rewarded in the labour market in terms of earnings and that a tertiary qualification improves an individual’s prospects of employment. While the premium for matric and incomplete secondary has fallen marginally over the period, the premium to tertiary has risen, especially for women. Differences in the reward to education level are evident for Africans versus the overall population, between urban and rural areas and for younger versus older workers. In particular, the premium to tertiary education has increased at a higher rate for Africans than for the overall population.<P>L'éducation et son rendement sur le marché du travail en Afrique du Sud, 1994-2010<BR>Dans cette étude nous examinons les rendements de l’éducation sur le marché du travail entre 1994 et 2010 à l’aide d’enquêtes-ménages nationales. Nous montrons que le rendement de l’éducation supérieure en termes de salaire est très élevé et qu’un diplôme du supérieur augmente également la probabilité d’être employé. Alors qu’un niveau d’éducation secondaire a eu des rendements en légère baisse au cours de la période, le rendement de l’éducation tertiaire a augmenté, surtout pour les femmes. A niveau éducatif donné, des différences de rendement sont observées entre les Africains et la population totale, les zones rurales et urbaines et entre les jeunes et les séniors. En particulier, les rendements de l’éducation tertiaire a augmenté plus rapidement pour les Africains que pour la population totale.
    Keywords: education, employment, earnings, South Africa, national household survey data, emploi, éducation, salaires, Afrique du Sud, enquête ménage nationale
    JEL: I24 J21 J31
    Date: 2013–02–19
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1022-en&r=lab
  14. By: Wang, Sun Ling; Carroll, Daniel; Nehring, Richard; McGath, Christopher
    Abstract: The purpose of this study is to estimate the shadow price of the legal status of farm workers. A hedonic function in terms of farm work experience, gender, education level, language skill, and legal status is estimated with control variables for employer type, farm work type, as well as other geographical and time variables. The data is drawn from the National Agricultural Workers Survey (NAWS). The preliminary results show that while legal status did contribute significantly to the wage differences it is not the major factor. After taking account of the composition shift in demographic characteristics, the quality adjusted labor prices still doubled in the past two decades.
    Keywords: Farm worker, U.S. agriculture, undocumented labor, legal status, hedonic analysis, Agricultural and Food Policy, Labor and Human Capital, J31, J43,
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:ags:aaea13:149866&r=lab
  15. By: Yoshimichi Murakami (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)
    Abstract: This study empirically analyzes whether trade liberalization increases wage inequality between skilled and unskilled workers in Chile during 1974–2007. The findings show that tariff reductions contributed to increases in wage inequality by causing price reductions of unskilled labor-intensive goods protected with the highest tariffs prior to trade liberalization. In contrast, we found no evidence that new technologies embodied in capital and intermediate goods caused skill-biased technological change. In addition, this study shows that an increase in the relative supply of college equivalents did not contribute to wage equalization, while an increase in the minimum wages contributed to wage equalization during the period of the democratic governments.
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:kob:dpaper:dp2013-19&r=lab
  16. By: KUEPIE Mathias; DZOSSA Anaclet Désiré; KELODJOUE Samuel
    Abstract: The purpose of this study is to measure the impact of human capital and the fertility burden on labor market inequalities between men and women, in particular as regards access to the most highly paid jobs. The study covers Cameroon, Mali and Senegal, three countries in sub-Saharan Africa with similar socioeconomic characteristics. The findings show that, even with the same level of education as men, women still stand less of a chance of getting into the top job segment, because education is less efficient for them. This result provides evidence of gender discrimination in all three countries. A fertility burden in terms of a large family is another obstacle to female access to high quality jobs. It has a direct negative impact in the two Sahelian countries (Mali and Senegal) and an indirect negative impact via its interaction with education in Cameroon and Senegal. In these two countries, the more children a woman has, the lower her marginal return to education. These findings combine to show that a woman?s labor market situation improves in all three countries when fertility declines, either directly through greater access to top jobs or indirectly via better human capital efficiency.
    Keywords: Female labor; Gender inequality; Labor market; Education return; Fertility
    JEL: J13 J22 J24
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:irs:cepswp:2013-08&r=lab
  17. By: Stéphanie Jamet; Thomas Chalaux; Vincent Koen
    Abstract: Sweden is a very egalitarian country but inequalities have risen and some groups are poorly integrated into the labour market. For growth to become more inclusive, the gap between the cost of labour and productivity for some groups needs to be reduced, transitions from education to work should be facilitated, incentives to take a job ought to be strengthened and the non-employed need to be protected against the risk of falling into unemployment or inactivity traps. This calls for lowering minimum wages relative to the average wage for groups at risk of becoming unemployed, improving vocational education and training, and extending the coverage of the unemployment insurance while strengthening obligations for the unemployed. To address labour market duality risks, the gap in job protection between temporary and permanent contracts needs to be reduced. Women’s employment is high but the gender wage gap could be narrowed further by enhancing their employment opportunities.<P>Des politiques sociales et du marché du travail au service d'une croissance plus solidaire en Suède<BR>Bien qu’elle soit un pays très égalitaire, la Suède accuse aujourd’hui un creusement des inégalités, et certaines catégories de sa population restent en marge du marché du travail. Pour favoriser une croissance plus solidaire, il est nécessaire de réduire l’écart entre le coût du travail et la productivité de certaines catégories de main-d’oeuvre, de faciliter le passage de l’école à la vie professionnelle, de renforcer les incitations au travail et de protéger les sans-emploi contre le piège du chômage ou de l’inactivité. Pour y parvenir, il faudra abaisser les minima salariaux par rapport au salaire moyen pour les groupes risquant de se retrouver au chômage, améliorer l’enseignement et la formation professionnelle et élargir la couverture de l’assurance-chômage, tout en renforçant les obligations des chômeurs. Pour faire face au risque de dualisme du marché du travail, les disparités dans la protection de l’emploi entre contrats temporaires et contrats permanents devront être réduites. Le taux d’emploi des femmes est certes élevé, mais l’écart salarial par rapport aux hommes pourrait être encore réduit en améliorant les perspectives d’emploi des femmes.
    Keywords: Sweden, employment protection legislation, labour costs, unemployment insurance, public employment services, minimum wage, vocational training, labour market dualism, vocational education, inclusive growth, inequality, gender equality, Suède, assurance chômage, salaire minimum, coût du travail, service public de l'emploi, dualisme du marché du travail, croissance inclusive, inégalités, législation pour la protection de l’emploi, apprentissage et formation professionnelle, égalité des genres
    JEL: I14 I28 I3 J08 J16 J3 J51 J65
    Date: 2013–02–18
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1023-en&r=lab
  18. By: Deniz Gevrek (Texas A&M University, Corpus Christi, 6300 Ocean Drive, Corpus Christi, TX 78412 and IZA, Bonn, Germany); Z. Eylem Gevrek (Department of Economics, University of Konstanz, Germany); Cahit Guven (Deakin University, Victoria 125, Australia)
    Abstract: Using the Children of the Immigrants Longitudinal Study from the United States, this paper examines the association between schooling at the intensive margin and adult outcomes among first- and second-generation American immigrants. Schooling at the intensive margin is measured by reading and math scores in middle school and by GPA scores in both middle and high school. We find that measures of academic performance predict pecuniary and nonpecuniary adult outcomes. We also find that academic performance in high school relative to middle school is important in explaining adult socioeconomic outcomes. Immigrants with higher GPAs in high school compared to middle school have more schooling, are in better health, are less likely to commit crime, and have higher expectations regarding future job prestige and schooling. On the other hand, a decline in GPAs is associated with lower satisfaction with income and occupation. Moreover, our results indicate that infant mortality rate, which is used as a proxy for unfavorable health conditions in the country of birth, has a negative impact on academic performance during childhood and on personal earnings and income satisfaction during adulthood.
    Keywords: Economics of Education, Human Capital, School Performance, Immigrants
    JEL: I21 I25 J15 J24
    Date: 2013–06–08
    URL: http://d.repec.org/n?u=RePEc:knz:dpteco:1311&r=lab
  19. By: KUEPIE Mathias; NOUETAGNI Samuel
    Abstract: Previous studies suggest that in addition to human capital, other factors not directly related to individual productivity play an important role in labor market integration. Our aim is to assess the impact of these factors, especially those concerning family background. To this end, we use a biographical database on individual trajectories. Analyses show that young people with privileged backgrounds are more likely to swiftly enter the wage sector than their peers from disadvantaged backgrounds. This result is found even when young people have the same level of education, suggesting considerable inequalities in the labor market, which need to be corrected
    Keywords: Labor market; Family background; Inequality of opportunity; Education efficiency
    JEL: J24 J62 J63
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:irs:cepswp:2013-09&r=lab
  20. By: Wang, Donghui
    Abstract: This study investigates the rate of returns to private investment in education in urban China, focusing on gender differences. It shows that in general females have higher rates of returns to schooling than males after taking account of sample selection bias and the endogeneity of schooling, despite the fact that females usually have less schooling and lower income. However, the advances of females become less prominent after controlling for occupational choices. Furthermore, the sub samples of rural-to-urban migrant workers and urban-resident workers display different patterns: for urban residents, females have slightly higher rates of returns to schooling, while migrant workers show an opposite hierarchy of gender differences in returns to schooling, in the sense that males have higher returns to schooling than females.
    Keywords: Labor and Human Capital, Public Economics,
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:ags:umapmt:150764&r=lab
  21. By: Guardado, José R. (American Medical Association); Ziebarth, Nicolas R. (Cornell University)
    Abstract: In this paper, we develop a theoretical model of worker investment in safety. Standard theory assumes that injury risk is exogenous. It predicts that riskier jobs are associated with higher wages. In contrast, in our model, workers make individual safety investments that reduce the risk of injury. This results in a negative association between individual injury risk and wages. We test the model's predictions using obesity as a proxy for worker disinvestments in human capital and safety. In line with our model predictions, we find a significant positive compensating wage differential (CWD) for nonfatal risk at the occupational level. At the same time, however, there exists an underlying significant negative association between individual accident risk and wages, but only in high risk occupations. The latter relationship may downward bias or mask CWD estimates.
    Keywords: worker investment, safety, nonfatal risk, compensating wage differential, obesity
    JEL: I10 I12 J24 J31 J62 J71
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7428&r=lab
  22. By: Vera Rocha (Universidade do Porto, cef.up and CIPES); Anabela Carneiro (Universidade do Porto and cef.up); Celeste Amorim Varum (Universidade de Aveiro, DEGEI and GOVCOPP)
    Abstract: This paper conducts a comprehensive study on entrepreneurship dynamics using a large longitudinal matched employer-employee dataset. We identify the transition of over 200,000 nascent business-owners and follow their survival patterns in the respective businesses using discrete time competing risks models. Different profiles of new business-owners are identified, taking into account their entry routes and how such entry choices impact on their persistence in the firm. Exits by dissolution are distinguished from exits by ownership transfer. We also analyze how previous labor market experiences and macroeconomic environment shape the individuals' decision to become and persist as business-owners. Controlling for a set of individual and previous job characteristics, we found that those experiencing a recent displacement are more likely to become entrepreneurs and to persist longer in the business. Concerning macroeconomic conditions, nascent entrepreneurs entering via start-up enter counter-cyclically, while all other nascent business-owners behave in line with the "prosperity-pull" hypothesis. Business-owners' entry choices significantly affect their post-entry persistence and exit modes. Particular experiences in the labor market while paid employees are also found to significantly influence the way individuals enter into and exit from entrepreneurship.
    Keywords: Entrepreneurship, Business Ownership, Entry, Exit
    JEL: J24 L26 M13
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:por:cetedp:1310&r=lab
  23. By: Enriqueta Camps
    Abstract: In this paper we present: 1. The available data on comparative gender inequality at the macroeconomic level and 2. Gender inequality measures at the microeconomic and case study level. We see that market openness has a significant effect on the narrowing of the human capital gender gap. Globalization and market openness stand as factors that improve both the human capital endowments of women and their economic position. But we also see that the effects of culture and religious beliefs are very different. While Catholicism has a statistically significant influence on the improvement of the human capital gender gap, Muslim and Buddhist religious beliefs have the opposite effect and increase human capital gender differences. In the second global era, some Catholic Latin American countries benefited from market openness in terms of the human capital and income gender gap, whereas we find the opposite impact in Buddhist and Muslim countries like China and South Korea where women’s economic position has worsened both in terms of human capital and wage inequality.
    Keywords: wage inequality, gender gap, market openness, human capital, religion, culture
    JEL: J22 J13 J16 N3
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:bge:wpaper:694&r=lab
  24. By: Nicola Branson; Murray Leibbrandt
    Abstract: In this paper we include measures of school quality in regressions determining the labour market premiums to education level. We use the matric exemption score and the pupil/teacher ratio of the respondents’ closest school during childhood as proxies for education quality. We find that the employment and earnings premiums to education level are robust to the inclusion of these quality measures. Moreover, there is a significant direct relationship between our quality measures and earnings, controlling for education level. Increasing the matric exemption score by 10 percentage points increases earnings, on average, by 8% and decreasing the pupil/teacher ratio by one learner is associated with a 1% increase in earnings. No significant relationship is found between the school quality measures and employment.<P>This Working Paper relates to the 2013 OECD Economic Survey of South Africa, www.oecd.org/eco/surveys/listofeconomicsurveysofsouthafrica.htm.<P>Qualité de l'éducation et rendement sur le marché du travail en Afrique du Sud<BR>Dans cette étude nous incluons des variables de qualité de l’éducation dans les régressions déterminant le rendement sur le marché du travail des niveaux d’éducation atteints. En guise de mesure de la qualité, nous utilisons le taux de réussite au diplôme final d’études secondaires ainsi que le ratio élève/enseignant de l’école la plus proche du lieu de résidence de l’individu sondé durant sa jeunesse. Nous trouvons que les effets des niveaux éducatifs sur les salaires et les probabilités d’avoir un emploi sont robustes à l’inclusion de ces variables de qualité de l’éducation. De plus, il y a une relation directe significative entre nos variables de qualité et les salaires après contrôle pour le niveau éducatif atteint. Augmenter le taux de réussite de l’école de 10 points de pourcentage augmente les salaires d’en moyenne 8%, tandis que diminuer le ratio élève-enseignant d’un élève augmente les salaires de 1%. Aucune relation robuste n’est exhibée entre les mesures de qualité de l’éducation et l’emploi.<P> Ce Document de travail se rapporte à l’Étude économique de l’OCDE de l’Afrique du Sud, www.oecd.org/fr/eco/etudeseconomiquespar pays/listofeconomicsurveysofsouthafrica. htm.
    Keywords: education, employment, earnings, South Africa, education quality, emploi, éducation, salaires, Afrique du Sud, qualité de l'éducation
    JEL: I24 J21 J31
    Date: 2013–02–18
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1021-en&r=lab
  25. By: Kaushal, Neeraj (Columbia University); Shang, Ce (University of Illinois at Chicago)
    Abstract: We study the earnings of Mexican immigrants in their traditional and newer destinations in the US. Analysis based on longitudinal data suggests that during 2001-2009, the real wage of Mexican immigrants increased 1-2% a year at the traditional destinations, but remained mostly statistically insignificant at the newer destinations. Mexicans at the traditional destinations exhibited greater residential stability: internal migration, non-follow up in the longitudinal data, and predicted return migration were higher among immigrants at the newer destinations than among immigrants at the traditional destinations. Predicted return migration was found to be selective on past earnings among men, but not among women. For men, a 10 percentage point increase in predicted probability of return migration was associated with a 0.3-0.5% lower wage in the year prior to return.
    Keywords: Mexican immigrants, selection, earning assimilation, geographic dispersion, return migration
    JEL: J61 J15
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7427&r=lab
  26. By: Richard Blundell (Institute for Fiscal Studies and University College London); Claire Crawford (Institute for Fiscal Studies); Wenchao (Michelle) Jin (Institute for Fiscal Studies)
    Abstract: This paper uses individual data on employment and wages to shed light on the UK’s productivity puzzle. It finds that workforce composition cannot explain the reduction in wages and hence productivity that we observe; instead, real wages have fallen significantly within jobs. Why? One possibility we investigate is higher labour supply in this recession than in the past. Another is lower trade union membership. Alternatively, it might be driven by a fall in productivity as a result of a lower capital-labour ratio. We cannot tell whether productivity is driving wages or vice versa, but understanding why wages have fallen within jobs is at the heart of the UK's productivity puzzle.
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:13/11&r=lab
  27. By: Nicolas Lepage-Saucier; Juliette Schleich; Etienne Wasmer
    Abstract: This paper discusses the pros and cons of a single labour contract. After reviewing the current state of dualism in labour markets and the recent labour reforms in Europe, we discuss the various proposals to eliminate dualism. Next, we emphasise the costs of dualism and discuss whether they would be addressed by introducing a single labour contract. We notably introduce a distinction between reforms based on introducing a single contract with progressive seniority rights (CPSR) or a single contract with long probation periods (CLPP).We argue that their gains and costs are very different, especially with regards to the stigma effects and dualism. We also consider alternative reforms: the introduction of a single labour contract as such, and alternative reforms independent of the labour contract but addressing the issue of dualism (training, access to housing and to credit) and compare their costs and benefits.<P> We then build a simple model where both temporary and permanent contracts are available to firms. We use it to describe the demand for temporary contracts and the potential consequences of removing them and reach the following conclusions. First, employment protection has a moderate negative impact on employment, which can be mitigated when temporary contracts are available. Second, the elimination of temporary contracts decreases total employment (by 7 percentage points according to our calculations). Offsetting this effect would require an ambitious reform of employment protection laws of permanent contracts (in this specific setup, amounting to a cut in layoff costs by two thirds). Finally, the coexistence of temporary and permanent contracts may also have negative effects on social norms within the firm and workers' motivation and eliminating temporary contracts could therefore enhance productivity in this context.<P> We conclude that while there are costs to dualism, these are not as obvious and well established as the ones triggered by employment protection itself. Further, the single employment contract may partly be a qui pro quo (misunderstanding) Instead, more clarity on the objectives of a labour reform is needed.<P>Vers un contrat unique, vraiment ? : Les avantages et les inconvénients<BR>Ce texte discute des avantages et des inconvénients du contrat de travail unique. Après une discussion du dualisme et des réformes récentes du marché du travail en Europe, nous décrivons les différentes propositions visant à éliminer le dualisme. Nous soulignons ensuite les coûts du dualisme et tentons de comprendre si la création d'un contrat unique les supprimerait. Nous introduisons notamment une distinction entre les réformes basées sur un contrat unique à droits progressifs (CUDP, ou CPSR pour l'acronyme anglais), ou sur un contrat avec une période d'essai allongée (CPEA ou CLPP pour l'acronyme en anglais). Les gains et les coûts sont très différents selon l'hypothèse retenue, en particulier par rapport aux effets de stigmatisation des travailleurs et par rapport à la persistence du dualisme. Nous envisageons aussi d'autres réformes: outre celle de l'introduction d'un contrat unique, nous discutons de différentes réformes indépendantes du contrat de travail mais modifiant les conséquences du dualisme du marché du travail (accès à la formation, au marché du crédit, au logement) et en comparons les coûts et avantages.<P> Nous élaborons ensuite un simple modèle où les contrats permanents et temporaires sont tous deux à disposition des entreprises et coexistent en leur sein. Nous utilisons cette structure théorique pour décrire la demande de contrats temporaires et les conséquences potentielles d'en supprimer l'usage. Nous en concluons: premièrement, que la protection de l'emploi a un impact négatif mais modéré sur l'emploi total, qui est précisément atténué par l'existence de contrats temporaires; deuxièmement, que l'élimination des contrats temporaires diminue l'emploi total (de 7 points de pourcentage selon notre modèle); pour anihiler cet eet négatif, il faudrait une réforme radicale des contrats permanents (qui dans le cas d'espèce diminuerait des deux tiers les coûts des licenciements associés aux contrats permanents); enn, la coexistence de contrats temporaires et permanents peut aussi avoir des conséquences négatives au niveau des normes sociales au sein de l'entreprise et sur la motivation des salariés; éliminer les contrats temporaires serait alors une amélioration de la productivité des entreprises.<P> Nous concluons sur le fait que si les coûts du dualisme sont réels, ils sont moins évidents et moins bien démontrés que ceux engendrés par la protection de l'emploi elle-même. De plus, le contrat unique pourrait être en partie un qui pro quo. Il serait au contraire utile de clarifier les objectifs fondamentaux des réformes du marché du travail.
    Keywords: unemployment, dualism, labour market reform, employment contracts, single labour contract, chômage, dualisme, réforme du marché du travail, contrats de travail, contrat unique
    JEL: J41 J42 J80
    Date: 2013–02–21
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1026-en&r=lab
  28. By: Mohrenweiser, Jens; Zwick, Thomas; Backes-Gellner, Uschi
    Abstract: A series of seminal theoretical papers argues that poaching of employees may hamper company-sponsored general training. However, the extent of poaching, its determinants and consequences, remains an open empirical question. We provide a novel empirical identification strategy for poaching and investigate its causes and consequences. We find that only a small number of training firms in Germany are poaching victims. Firms are more likely to poach employees during an economic downturn. Training firms respond to poaching by lowering the share of new apprentice intakes in the following years. --
    Keywords: poaching,company sponsored training,recruiting,apprenticeship
    JEL: J24 M51 M53
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13037&r=lab

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