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on Labour Economics |
| By: | Olivier Godechot (Sciences Po, MaxPo and OSC-CNRS); Claudia Senik (University Paris-Sorbonne and PSE) |
| Abstract: | This paper looks at the association between wage satisfaction and different notions of reference wage, based on a matched employer-employee dataset. It shows that workers’ satisfaction depends on other-people’s income in different ways. Relative income concerns are important, but we also find robust evidence of signal effects. For instance, workers are happier the higher the median wage in their firm, holding their own wage constant. This is true of all employees, whatever their relative position in the firm. This signal effect is stronger for young people and for women. These findings are based on objective measures of earnings as well as subjective declarations about wage satisfaction, awareness of other people’s wage and reported income comparisons. |
| Keywords: | Income comparisons, income distribution, job satisfaction, wage satisfaction, signal effect, matched employer-employee survey data. |
| JEL: | D31 D63 I30 J28 J31 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2013-311&r=lab |
| By: | Susanne Prantl (University of Cologne, Max Planck Institute for Research on Collective Goods, Bonn, and Institute for Fiscal Studies, London); Alexandra Spitz-Oener (Humboldt-University Berlin, IAB, CASE and IZA) |
| Abstract: | Does interacting product and labor market regulation alter the impact of immigration on wages of competing native workers? Focusing on the large, sudden and unanticipated wave of migration from East to West Germany after German reunification and allowing for endogenous immigration, we compare native wage reactions across different segments of the West German labor market: one segment without product and labor market regulation, to which standard immigration models best apply, one segment in which product and labor market regulation interact, and one segment covering intermediate groups of workers. We find that the wages of competing native West Germans respond negatively to the large influx of similar East German workers in the segment with almost free firm entry into product markets and weak worker influence on the decision-making of firms. Competing native workers are insulated from such pressure if firm entry regulation interacts with labor market institutions, implying a strong influence of workers on the decision-making of profit-making firms. |
| Keywords: | Immigration, Product Market Regulation, Labor Market Regulation |
| JEL: | L50 J61 J3 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2013_22&r=lab |
| By: | Barnichon, Regis (Board of Governors of the Federal Reserve System (U.S.)); Figura, Andrew (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | The U.S. labor market witnessed two apparently unrelated secular movements in the last 30 years: a decline in unemployment between the early 1980s and the early 2000s, and a decline in participation since the early 2000s. Using CPS micro data and a stock-flow accounting framework, we show that a substantial, and hitherto unnoticed, factor behind both trends is a decline in the share of nonparticipants who are at the margin of participation. A lower share of marginal nonparticipants implies a lower unemployment rate, because marginal nonparticipants enter the labor force mostly through unemployment, while other nonparticipants enter the labor force mostly through employment. |
| Keywords: | Unemployment rate; labor force participation rate; individuals marginally attached to the labor force |
| JEL: | E24 |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2013-88&r=lab |
| By: | Alberto Behar; Junghwan Mok |
| Abstract: | We quantify the extent to which public-sector employment crowds out private-sector employment using specially assembled datasets for a large cross-section of developing and advanced countries. Regressions of either private-sector employment rates or unemployment rates on two measures of public-sector employment point to full crowding out. This means that high rates of public employment, which incur substantial fiscal costs, have a large negative impact on private employment rates and do not reduce overall unemployment rates. |
| Keywords: | Employment, Crowding out |
| JEL: | J21 J23 J68 H59 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2013-20&r=lab |
| By: | Ratner, David (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | Unemployment insurance experience rating imposes higher payroll tax rates on firms that have laid off more workers in the past. To analyze the effects of UI tax policy on labor market dynamics, this paper develops a search model of unemployment with heterogeneous firms and realistic UI financing. The model predicts that higher experience rating reduces both job creation and job destruction. Using firm-level data from the Quarterly Census of Employment and Wages, the model is tested by comparing job creation and job destruction across states and industries with different UI tax schedules. The empirical analysis shows a strong negative relationship between job flows and experience rating. Consistent with the empirical results, comparative steady state tax experiments show that a 5% increase in experience rating reduces job flows by an average of 1.4%. While the unemployment rate falls on average by .21 percentage points, the effect on tax revenues is ambiguous. The model has implications for UI financing reform currently being considered at the state and national level. Two alternative reforms that close half of the UI financing gap are considered: the reform that increases experience rating is shown to improve labor market outcomes. In a version of the model with aggregate shocks, higher experience rating dampens the response of layoffs and unemployment over the business cycle. Experience rating also induces nonlinear responses of unemployment to proportionally larger shocks as well as asymmetry in response to booms and busts. |
| Keywords: | Unemployment insurance; experience rating |
| Date: | 2014–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2013-86&r=lab |
| By: | B. Ben-Halima (EQUIPPE, University of Lille 1, France); Nathalie Chusseau (EQUIPPE, University of Lille 1, France); Joel Hellier (EQUIPPE, University of Lille 1 and LEMNA, IEMN-IAE, France) |
| Abstract: | In the case of France, we analyse the changes in the wage value of each education level and the impact of parents' education and income upon the education attainment of children, sons and daughters. We find a critical decline in the skill premium of the Baccalaureat (`bac') in relation to the lowest educational level, and an increase in the skill premia of higher education degrees in relation to the bac, which is however not large enough to erase the decrease in all the skill premia relative to the lowest education. We also find a significant rise in the impact of family backgrounds upon education from 1993 to 2003, i.e. a decrease in intergenerational education mobility, which primarily derives from higher impact of parental incomes. Finally, the gender wage gap is particularly large for the lowest and the highest education degrees, and ntergenerational persistence is greater for sons than for daughters. |
| Keywords: | Family backgrounds, intergenerational education mobility, skill premium. |
| JEL: | I2 J24 J31 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2013-313&r=lab |
| By: | Kondo, Illenin O. (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | Using data on trade-induced displacements, this paper documents that locations facing more foreign competition in the U.S. have: higher job destruction rates, lower job creation rates, and thereby lower employment rates. In contrast to standard trade theory, a model with variable markups and heterogeneous segmented labor markets is consistent with these facts. Foreign competition has a correlated effect on job destruction and job creation precisely because the most vulnerable locations also have lower productivity. Following an unexpected trade liberalization with limited mobility, employment sharply falls in the worse hit locations while welfare and employment increase in the aggregate. |
| Keywords: | Foreign competition; nonemployment; job flows; spatial heterogeneity |
| JEL: | F16 |
| Date: | 2013–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1095&r=lab |
| By: | Essers, Dennis |
| Abstract: | This paper studies individual-level labour market transitions and their determinants in South Africa during the zenith and aftermath of the global financial and economic crisis using 2008-2010/11 panel data from the National Income Dynamics Study (NIDS) and matched cross-sections of the Quarterly Labour Force Survey (QLFS) over 2008Q1-2012Q4. We uncover considerable movement in South African labour markets over the crisis period. Chances of continued employment significantly vary along gender, age and education levels and between different sorts of occupations and sectors of employment. Although we do find time variation in the economic significance of some of these explanatory variables, it remains difficult to link this variation directly to the evolution of South Africa’s economy over the course of the crisis. |
| Keywords: | global financial crisis; labour markets; employment; survey data; South Africa |
| JEL: | G01 J64 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iob:wpaper:2013012&r=lab |
| By: | Dedoussopoulos, Apostolos; Aranitou, Valia; Koutentakis, Franciscos; Maropoulou, Marina |
| Keywords: | labour market, employment, unemployment, labour relations, collective bargaining, social dialogue, economic recession, Greece, marché du travail, emploi, chômage, relations de travail, négociation collective, dialogue social, récession économique, Grèce, mercado de trabajo, empleo, desempleo, relaciones laborales, negociación colectiva, diálogo social, recesión económica, Grecia |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:483774&r=lab |
| By: | Patrick M. Kline |
| Abstract: | We derive the limiting distribution of the Oaxaca estimator of average treatment effects studied by Kline (2011). A consistent estimator of the asymptotic variance is proposed that makes use of standard regression routines. It is shown that ignoring uncertainty in group means will tend to lead to an overstatement of the asymptotic standard errors. Monte Carlo experiments examine the finite sample performance of competing approaches to inference. |
| JEL: | C01 J31 J7 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19784&r=lab |
| By: | Papola, Trilok Singh |
| Keywords: | labour market, labour market segmentation, labour flexibility, labour legislation, comment, India, marché du travail, segmentation du marché du travail, flexibilité du travail, législation du travail, commentaire, Inde, mercado de trabajo, segmentación del mercado de trabajo, flexibilidad del trabajo, legislación del trabajo, comentario, India |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:483335&r=lab |
| By: | Ha, Byung-jin; Lee, Sangheon |
| Keywords: | precarious employment, labour market segmentation, small enterprise, Korea R, emploi précaire, segmentation du marché du travail, petite entreprise, Corée R, empleo precario, segmentación del mercado de trabajo, pequeña empresa, Corea R |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:483558&r=lab |
| By: | Reuven S. Avi-Yonah (University of Michigan) |
| Abstract: | A central premise of tax scholarship of the last thirty years has been the greater mobility of capital than labour. Recently, scholars such as Edward Kleinbard have recommended that the US adopt a variant of the “dual income tax” model used by the Scandinavian countries, under which income from capital is subject to significantly lower rates than labour income because of its supposedly greater mobility. This article argues that the premise upon which this argument is built is mistaken, because for individual US taxpayers (as opposed to corporations), there are significant limitations on their ability to avoid tax by moving their capital overseas. Moreover, if we focus on those taxpayers that pay the bulk of the income tax (i.e., the upper middle class and the rich), the data suggest that their ability to legally avoid taxation by expatriation is not significantly lower than their ability to evade it by moving capital, and lower income taxpayers are able to avoid both the income tax and the payroll tax (as well as a VAT) by emigration. The article then develops the policy implications, suggesting that (contrary to recent legislative trends) income from labour and capital should be subject to the same tax rates, but that these rates should be congruent with the price the US population is willing to pay for public services. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:btx:wpaper:1318&r=lab |
| By: | Liemt, Gijsbert van |
| Keywords: | private employment agency, employment service, institutional framework, Netherlands, Spain, Sweden, agence pour l'emploi privée, service de l'emploi, cadre institutionnel, Pays-Bas, Espagne, Suède, agencia de empleo privada, servicio de empleo, organización institucional, Países Bajos, España, Suecia |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:483872&r=lab |
| By: | Budlender, Debbie |
| Keywords: | private employment agency, labour legislation, role of ILO, ILO Convention, comment, South Africa R, agence pour l'emploi privée, législation du travail, rôle de l'OIT, convention de l'OIT, commentaire, Afrique du Sud R, agencia de empleo privada, legislación del trabajo, papel de la OIT, Convenio de la OIT, comentario, República de Sudáfrica |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:483836&r=lab |