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on Labour Economics |
| By: | Olivier Thévenon (INED) |
| Abstract: | This paper analyses the response of female labour force participation to changes in labour markets and policies supporting the reconciliation of work and family life, with country-level data from the early 1980s for 18 OECD countries. It includes an original analysis of interactions and complementarity between different policy measures, as well as of potential variations in the influence of policies across different family policy regimes. The results highlight that while employment rates react to changes in tax rates and in leave policies, increased provision of formal childcare services to working parents with children below three years old is a key policy driver of female labour force participation. The coverage of childcare services is found to have a greater effect on women's labour market participation in countries with relatively high levels of employment protection, longer paid leave, and with other measures supporting working mothers. In all, it suggests that policy measures securing the labour market participation of women with young children interact with each other to maximise their overall effect on employment rates. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:idg:wpaper:201&r=lab |
| By: | Grossbard, Shoshana (San Diego State University, California); Vernon, Victoria (Empire State College) |
| Abstract: | Does availability of common law marriage (CLM henceforth) in the U.S help explain variation in the labor force participation, hours of work and hours of household production of men and women over time and across states? As CLM offers more legal protection to household producers at the margin between single status and marriage, we expect it to discourage labor supply and encourage household production on the part of household producers who are married or cohabit. In the context of traditional gender roles this implies a negative association between availability of CLM and the labor supply of women who are either married or cohabit. Also assuming traditional gender roles, men are then expected to work more in the labor force when CLM is available. We analyze micro data from CPS-iPums for the period 1995-2011 to investigate labor outcomes and from the ATUS for the period 2003-11 to study effects on household production and total hours of work. Labor supply effects of CLM availability are almost always negative for cohabiting and married women, and sometimes also for single women. The effects of CLM on men's labor supply tend to be negative when samples include all men aged 18-35. However, for the groups that we identified as most likely to be affected by CLM availability – the youngest white men w/o college education – we find positive effects. Married non-black men and women and work less in home production under CLM. |
| Keywords: | labor supply, marriage, law and economics, household production |
| JEL: | J12 J16 J22 K36 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7937&r=lab |
| By: | Sato, Yasuhiro (Osaka University); Zenou, Yves (Stockholm University) |
| Abstract: | We develop a model where the unemployed workers in the city can find a job either directly or through weak or strong ties. We show that, in denser areas, individuals choose to interact with more people and meet more random encounters (weak ties) than in sparsely populated areas. We also demonstrate that, for a low urbanization level, there is a unique steady-state equilibrium where workers do not interact with weak ties, while, for a high level of urbanization, there is a unique steady-state equilibrium with full social interactions. We show that these equilibria are usually not socially efficient when the urban population has an intermediate size because there are too few social interactions compared to the social optimum. Finally, even when social interactions are optimal, we show that there is over-urbanization in equilibrium. |
| Keywords: | weak ties, strong ties, social interactions, urban economics, labor market |
| JEL: | J61 R14 R23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7914&r=lab |
| By: | Blundell, Richard (University College London); Graber, Michael (University College London); Mogstad, Magne (University College London) |
| Abstract: | What do labor income dynamics look like over the life-cycle? What is the relative importance of persistent shocks, transitory shocks and heterogeneous profiles? To what extent do taxes, transfers and the family attenuate these various factors in the evolution of life-cycle inequality? In this paper, we use rich Norwegian data to answer these important questions. We let individuals with different education levels have a separate income process; and within each skill group, we allow for non-stationarity in age and time, heterogeneous experience profiles, and shocks of varying persistence. We find that the income processes differ systematically by age, skill level and their interaction. To accurately describe labor income dynamics over the life-cycle, it is necessary to allow for heterogeneity by education levels and account for non-stationarity in age and time. Our findings suggest that the progressive nature of the Norwegian tax-transfer system plays a key role in attenuating the magnitude and persistence of income shocks, especially among the low skilled. By comparison, spouse's income matters less for the dynamics of inequality over the life-cycle. |
| Keywords: | income dynamics, insurance, life cycle inequality |
| JEL: | C33 D3 D91 J31 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7916&r=lab |
| By: | Jauer, Julia (OECD); Liebig, Thomas (OECD); Martin, John P. (OECD); Puhani, Patrick A. (University of Hannover) |
| Abstract: | The question of whether migration can be an equilibrating force in the labour market is an important criterion for an optimal currency area. It is of particular interest currently in the context of high and rising levels of labour market disparities, in particular within the Eurozone where there is no exchange-rate mechanism available to play this role. We shed some new light on this question by comparing pre- and post-crisis migration movements at the regional level in both Europe and the United States, and their association with asymmetric labour market shocks. We find that recent migration flows have reacted quite significantly to the EU enlargements in 2004 and 2007 and to changes in labour market conditions, particularly in Europe. Indeed, in contrast to the pre-crisis situation and the findings of previous empirical studies, there is tentative evidence that the migration response to the crisis has been considerable in Europe, in contrast to the United States where the crisis and subsequent sluggish recovery were not accompanied by greater interregional labour mobility in reaction to labour market shocks. Our estimates suggest that, if all measured population changes in Europe were due to migration for employment purposes – i.e. an upper-bound estimate – up to about a quarter of the asymmetric labour market shock would be absorbed by migration within a year. However, in the Eurozone the reaction mainly stems from migration of third-country nationals. Even within the group of Eurozone nationals, a significant part of the free mobility stems from immigrants from third countries who have taken on the nationality of their Eurozone host country. |
| Keywords: | free mobility, migration, economic crisis, labour market adjustment, Eurozone, Europe, United States |
| JEL: | F15 F16 F22 J61 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7921&r=lab |
| By: | Vanessa Mertins (Institute for Labour Law and Industrial Relations in the EU, University of Trier); Wolfgang Hoffeld (Institute for Labour Law and Industrial Relations in the EU, University of Trier) |
| Abstract: | The tendency to underestimate others’ relative performance compared to one’s own is widespread among individuals in all work environments. We examine the relationship between, and the driving forces behind, individual overconfidence and voluntary cooperation in team production. Our experimental data suggest an indirect and gender-specific link: Overconfident men hold more optimistic beliefs about coworkers’ cooperativeness than men who lack confidence, and are accordingly significantly more cooperative, whereas overconfidence, beliefs, and cooperativeness are not correlated in women. |
| Keywords: | team production, public good, experiment, real effort, cooperation, gender, overconfidence, belief |
| JEL: | M52 J33 J16 J24 C91 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iaa:dpaper:201313&r=lab |
| By: | Olivier Thévenon (INED); Anne Solaz (INED) |
| Abstract: | Paid parental leave has gained greater salience in the past few decades with the growing participation of mothers in the workforce. Indeed, the average number of weeks of paid leave to mothers among OECD countries increased from 17 in 1980 to 48 weeks by 2011, but with very large cross-country variations. We investigate how increases in periods of paid leave after a birth affect prime-age labour market outcomes for men and women in 30 OECD countries from 1970 to 2010. We also examine gender differences in outcomes. We find that extensions of paid leave have a positive, albeit small, influence on female employment rates and on the gender ratio of employment, as long as the total period of paid leave does not exceed two years. Weeks of paid leave also raise the average number of hours worked by women relative to men, up to a certain limit. By contrast, the provision of paid leave widens the earnings gender gap among full-time employees. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:idg:wpaper:199&r=lab |
| By: | Maibom Pedersen, Jonas (Aarhus University); Rosholm, Michael (Aarhus University); Svarer, Michael (Aarhus University) |
| Abstract: | Active labour market policies (ALMPs) may play an important role in preventing an increase in long-term unemployment following the Great Recession. We consider this issue for Denmark, a country relying extensively on this instrument. We present evidence on the effectiveness of ALMPs as a way of fighting youth unemployment using results from a randomised controlled trial (RCT) that intensified the use of ALMPs. The intervention was conducted after the onset of the financial crisis, and the findings are relatively unfavourable in the sense that further intensification of an already quite intensive effort for youth did not increase employment. In addition, the intensification of ALMPs seems to have in-creased transitions into sickness benefits. |
| Keywords: | youth unemployment, activation, random controlled experiments |
| JEL: | J0 J64 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7912&r=lab |
| By: | Del Carpio, Ximena (World Bank); Messina, Julián (World Bank); Sanz-de-Galdeano, Anna (Universitat Autònoma de Barcelona) |
| Abstract: | We study the causal impact of the minimum wage on employment and welfare in Thailand using a difference-in-difference approach that relies on exogenous policy variation in minimum wages across provinces. We find that minimum-wage increases have small disemployment effects on female, elderly, and less-educated workers and large positive effects on the wages of prime-age male workers. As such, increases in the minimum wage are associated with increases in household consumption per capita in general, but the consumption increase is greatest among those households around the median of the distribution. In fact, rises in the minimum wage increased inequality in consumption per capita within the bottom half of the distribution. |
| Keywords: | minimum wage, household consumption, poverty, employment, uncovered sector |
| JEL: | J31 D31 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7911&r=lab |
| By: | Godøy, Anna (Institute for Social Research, Oslo); Røed, Knut (Ragnar Frisch Centre for Economic Research) |
| Abstract: | Should unemployment insurance (UI) systems provide coverage for underemployed job seekers? Based on a statistical analysis of Norwegian unemployment spells, we conclude that the answer to this question is yes. Allowing insured job seekers to retain partial UI benefits during periods of insufficient part-time work not only reduces UI expenditures during the part-time work period; it also unambiguously reduces the time until a regular self-supporting job is found. Probable explanations are that even small temporary part-time jobs provide access to useful vacancy-information and that such jobs are used by employers as a screening device when hiring from the unemployment pool. |
| Keywords: | unemployment insurance, part-time work, duration analysis |
| JEL: | C41 J65 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7913&r=lab |
| By: | Damiani, Mirella; Pompei, Fabrizio; Ricci, Andrea |
| Abstract: | The authors analyzed the role of Performance Related Pay (PRP) in a sample of Italian manufacturing and service firms and presented standard quantile estimates to investigate heterogeneity in pay-performance impacts on labor productivity and wages. In a second stage, the endogeneity of PRP was taken into account by using instrumental variable quantile regression techniques. They find considerable heterogeneity across the distribution of labor productivity and wages, with the highest role of PRP obtained at the lowest and highest quantiles. However, for all quantiles, the comparison of productivity and wage estimates suggests that PRP might not only be rent-sharing devices, but also incentive schemes that substantially lead to efficiency enhancements. These findings are confirmed for firms under union governance and suggest that well designed policies, that circumvent the limited implementation of PRP practices, would guarantee productivity improvement. |
| Keywords: | Efficiency, Wages, Performance–related pay, unions |
| JEL: | D24 J31 J33 J51 |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53341&r=lab |
| By: | Hospido, Laura (Bank of Spain); Zamarro, Gema (University of Southern California) |
| Abstract: | In this paper we study the retirement patterns of couples in a multi-country setting using data from the Survey of Health, Aging and Retirement in Europe. In particular we test whether women's (men's) transitions out of the labor force are directly related to the actual realization of their husbands' (wives') transition, using the institutional variation in country-specific early and full statutory retirement ages to instrument the latter. Exploiting the discontinuities in retirement behavior across countries, we find a significative joint retirement effect for women of 21 percentage points. For men, the estimated effect is insignificant. Our empirical strategy allows us to give a causal interpretation to the effect we estimate. In addition, this effect has important implications for policy analysis. |
| Keywords: | joint retirement, social security incentives |
| JEL: | J26 D10 C21 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7926&r=lab |
| By: | Pablo Lavado (Departamento de Economía, Universidad del Pacífico); Gustavo Yamada (Departamento de Economía, Universidad del Pacífico) |
| Abstract: | Many studies have been conducted to analyze the effect of stricter Employment Protection Legislation (EPL). However, almost all of them has focused on an ex-post impact; leaving aside a second but equally important channel: expectations. This paper aims to analyze the role of expectations on peruvian formal and informal labor market; using news as our identification variable. We use the monthly number of news related to the approval of the General Labor Law (GLL), a proposal entailing future stronger labor rigidities, from January 2001 to May 2012. Using the Permanent Employment Survey (EPE), we find a negative relation between expectations towards a stricter labor market and both employment and average income. News mainly affect formal occupied EAP, arousing a substitution effect from formal to informal employment. We also discover that the effect of expectations differs in periods with higher versus lower GDP growth. Finally, we find some evidence supporting news having a cumulative effect: the larger the previous stock of news, the weaker the effect. |
| Keywords: | Fear, Labor, Rigidities, Role, Expectations, Employment, Growth, Peru , Perú, News, EAP |
| JEL: | D22 D24 D81 D82 D84 D92 E24 E26 J0 J20 J22 J23 J28 J38 J64 J68 J80 J81 J83 J88 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:pai:wpaper:13-17&r=lab |
| By: | Pouliakas, Konstantinos (European Centre for the Development of Vocational Training (Cedefop)) |
| Abstract: | This paper provides an evidence-based assessment of the current situation prevailing in the Greek market for skills and jobs. The synthesis of available skills intelligence for Greece, the country most severely affected by the global economic crisis of 2008, is crucial as it is currently faced with tough decisions regarding the allocation of limited resources in the face of economic austerity. The paper engages in a comparative overview of Greece's performance on flagship Europe 2020 indicators on education and employment in relation to the EU. An empirical analysis of the incidence and determinants of skill mismatches in the Greek and EU job markets is also undertaken, using data from several European data sources. It is argued that a stronger vocational education and training pillar may constitute a valuable option for strengthening the links between the initial educational system and the labour market in Greece. But tackling skill mismatch requires skill development and skill utilization policies in the workplace. A stronger commitment to enhancing the skill content of jobs by employers via the adoption of high performance workplace practices, investment in continuous training, less reliance on casual labour and policies to support small and medium-sized enterprises in the war for talent are necessary if Greece is to make the most of its rich skills reserves. |
| Keywords: | skills, skill mismatch, Greece, vocational education and training, overeducation, shortages |
| JEL: | C25 I29 J11 J20 J24 J69 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7915&r=lab |
| By: | Charlotte Senftleben-König; ; ; |
| Abstract: | This paper investigates the short- and medium-term effects of the deregulation of shopopening hours legislation on retail employment in Germany. In 2006, the legislative competence was shifted from the federal to the state level, leading to a gradual deregulation of shop opening restrictions in most of Germany’s sixteen federal states. The paper exploits regional variation in the legislation in order to identify the effect product market deregulation has on retail employment. We find robust evidence that the deregulation of shop closing legislation had negative effects on retail employment, with considerable heterogeneity in terms of the type of employment as well as establishment size. That is, the employment losses are most pronounced for small retail stores and are almost exclusively borne by full-time employees. |
| Keywords: | Product market regulation, Employment, Retail trade |
| JEL: | J21 L51 L81 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2014-013&r=lab |
| By: | Kaiser, Lutz C. (North Rhine-Westphalia University of Applied Sciences) |
| Abstract: | Based on a unique case study-dataset, the paper analyses job satisfaction and public service motivation in Germany. A special issue of the investigation is related to the evaluation of performance pay scales that were introduced some years ago to German public employees within the frame of fostering New Public Management. The findings display a general dominance of intrinsic motivators. Additionally, this kind of motivators plays an important role with regard to building up and keeping job satisfaction in the public sector. Further results display the transferability of competences, autonomy, regular appraisal interviews and productivity feedback as factors incorporating a positive significance in terms of job satisfaction. |
| Keywords: | job satisfaction, public service motivation, performance pay scales, HR-management |
| JEL: | J28 J45 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7935&r=lab |
| By: | Fairlie, Robert |
| Abstract: | Estimates from the Panel Study of Income Dynamics (PSID) indicate that African-American men are one-third as likely to be self-employed as white men. The large discrepancy is due to a black transition rate into self-employment that is approximately one half the white rate and a black transition rate out of self-employment that is twice the white rate. Using a new variation of the Blinder-Oaxaca decomposition technique, I find that racial differences in asset levels and probabilities of having self-employed fathers explain a large part of the black/white gap in the entry rate, but almost none of the gap in the exit rate. |
| Keywords: | Business, Social and Behavioral Sciences, entrepreneurship; inequality, race, minorities, business ownership, labor |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucscec:qt49c4n0fg&r=lab |
| By: | Doerrenberg, Philipp (University of Cologne); Duncan, Denvil (Indiana University); Zeppenfeld, Christopher (University of Cologne) |
| Abstract: | This paper examines whether risk-taking in a lottery depends on the opportunity to respond to the lottery outcome through additional labor effort and/or tax evasion. Previous empirical attempts to answer this question face identification issues due to self-selection into jobs that facilitate tax evasion and labor effort flexibility. We address these identification issues using a laboratory experiment (N = 180). Subjects have the opportunity to invest earned income in a lottery and, depending on randomly assigned treatment states, have the opportunity to respond to the lottery outcome through evasion and/or extra labor effort. We find strong evidence that ex-post access to labor opportunities reduces ex-ante risk willingness while access to tax evasion has no effect on risk behavior. We discuss possible explanations for this result based on the existing literature. |
| Keywords: | tax evasion, labor supply, risk behavior, lab experiment |
| JEL: | G11 H21 H24 H26 J22 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7917&r=lab |
| By: | Bender, Keith A. (University of Aberdeen); Mavromaras, Kostas G. (NILS, Flinders University); Theodossiou, Ioannis (University of Aberdeen); Wei, Zhang (NILS, Flinders University) |
| Abstract: | This paper estimates the propensity to retire and the persistence of remaining retired once the decision to retire has been made in the US labour market, using a dynamic panel probit model. The estimated income effect of higher housing wealth is virtually zero and that of financial assets wealth is positive, increasing the retirement probability. The substitution effect of earned income is negative, thus decreasing the retirement probability. The retirement decision is strongly state persistent for up to three years after the initial retirement decision and the state persistence of retirement is reinforced by wealth and earned income. |
| Keywords: | retirement decision, retirement dynamics, dynamic panel estimation, income and wealth |
| JEL: | J14 J26 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7927&r=lab |
| By: | Consoli,Davide; Vona,Francesco; Rentocchini,Francesco |
| Abstract: | We analyze changes in the skill content of occupations in US four-digit manufacturing industries between 1999 and 2010. Following a ‘task-based’ approach, we elaborate a measure of Non-Routine skill intensity that captures the effects of industry exposure to both technology and international trade. The paper adds to previous literature by focusing on both the determinants of demand for Non-Routine skills and their effects on industry productivity and wages. The key finding is that import competition from low-wage countries has been a strong driver of demand for Non-Routine skills during the 2000s. Both technology and imports from low-wage countries are associated with mild cross-industry convergence in skill intensity while imports from high and medium wage countries are at root of persistent heterogeneity across occupational groups. We also find that higher Non-Routine skill intensity has had at best a modest effect on productivity and wages, except for high-skill occupations. |
| Keywords: | Skills, Tasks, Routinization, Trade, technology |
| JEL: | F16 J21 J23 O33 |
| Date: | 2014–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201306&r=lab |
| By: | Jo Blanden; Lindsey Macmillan |
| Abstract: | Evidence on intergenerational income mobility in the UK is dated. This paper seeks to update our knowledge by introducing new estimates of mobility for later measures of earnings in the 1958 and 1970 birth cohorts. Given poor or non-existent data on more recent cohorts we adopt an indirect approach to assessing more recent mobility trends. This exploits the close link between income persistence across generations and the gap in educational achievement by family background (referred to as educational inequality). We gather a comprehensive set of data which measures educational inequality for different cohorts at different points in the education system. We conclude that educational inequality has declined for cohorts born after 1980, and this is associated with rising average educational achievement. In contrast, evidence on high attainment does not reveal that educational inequality has declined; this suggests that policy seeking to promote equality of opportunity should encourage students to aim high. |
| Keywords: | intergenerational income mobility |
| JEL: | J31 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticas:/179&r=lab |
| By: | Bertranou, Fabio |
| Abstract: | The paper identifies and assesses the mechanisms used to formulate and to implement the employment policy in Argentina. Specifically, it investigates the range of factors that have had a direct or indirect effect on determining the institutional organization surrounding such policies, as well as the context in which the mechanisms of employment policy have been developed. It also reviews the structure of employment policy and how it functions, as well as the main challenges to its consolidation as a component of a development strategy. The following factors are identified and described: a) mechanisms for tripartite coordination and coordination across jurisdictions and sectors; b) pillars essential to supporting employment policy, such as inspection, vocational education and training, and public employment services, as well as information, management and assessment systems; and c) accountability mechanisms. |
| Keywords: | employment policy, labor institutions, coordination mechanisms |
| JEL: | J5 J8 J88 P41 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53342&r=lab |
| By: | John Jerrim (Department of Quantitative Social Science, Institute of Education, University of London) |
| Abstract: | The link between family background and labour market outcomes is an issue of great academic, social and political concern. It is frequently claimed that such intergenerational associations are stronger in Britain than other countries. But is this really true? I investigate this issue by estimating the link between parental education and later lifetime income, using three cross-nationally comparable datasets covering more than 30 countries. My results suggest that the UK is broadly in the middle of the cross-country rankings, with intergenerational associations notably stronger than in Scandinavia but weaker than in Eastern Europe. Overall, I find only limited support for claims that family background is a greater barrier to economic success in Britain than other parts of the developed world. |
| Keywords: | intergenerational mobility, parental education, income, PIAAC, EU-SILC |
| JEL: | J62 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1402&r=lab |