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on Labour Economics |
| By: | Oreffice, Sonia (University of Surrey) |
| Abstract: | This study investigates how spouses' cultural backgrounds mediate the role of intra-household bargaining in the labor supply decisions of foreign-born and US-born couples, in a collective-household framework. Using data from the 2000 US Census, I show that the hours worked by US-born couples, and by those foreign-born coming from countries with gender roles similar to the US, are significantly related to common bargaining power forces such as differences between spouses in age and non-labor income, controlling for both spouses' demographic and socioeconomic characteristics. Households whose culture of origin supports strict and unequal gender roles do not exhibit any association of these power factors with their labor supply decisions. This cultural asymmetry suggests that spousal attributes are assessed differently across couples within the US, and that how spouses make use of their outside opportunities and economic and institutional environment may depend on their ethnicities. |
| Keywords: | culture, gender roles, household bargaining power, labor supply |
| JEL: | D1 J15 J22 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7997&r=lab |
| By: | Michael Kuklik (Long Island University); Nikita Céspedes (Central Bank of Peru) |
| Abstract: | The optimal capital income tax rate is 36 percent as reported by Conesa, Kitao, and Krueger (2009). This result is mainly driven by the market incompleteness as well as the endogenous labor supply in a life-cycle framework. We show that this model fails to account for the basic life-cycle features of the labor supply observed in the U.S. data. In this paper, we introduce into this model non-linear wages and inter-vivos transfers into this model in order to account for the life-cycle features of labor supply. The former makes hours of work highly persistent and helps to account for labor choices at the extensive margin over the life cycle. The latter allows us to account for labor choices early in life. The suggested model delivers an optimal capital income tax rate of 7.4 percent, which is significantly lower than what Conesa, Kitao, and Krueger (2009) found. |
| Keywords: | Labor supply, optimal taxation, capital taxation, non-linear wage, inter-vivos transfer |
| JEL: | E13 H21 H24 H25 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:2014-008&r=lab |
| By: | Justin R. Pierce; Peter K. Schott |
| Abstract: | This paper finds a link between the sharp drop in U.S. manufacturing employment beginning in 2001 and a change in U.S. trade policy that eliminated potential tariff increases on Chinese imports. Industries where the threat of tariff hikes declines the most experience more severe employment losses along with larger increases in the value of imports from China and the number of firms engaged in China-U.S. trade. These results are robust to other potential explanations of the employment loss, and we show that the U.S. employment trends differ from those in the EU, where there was no change in policy. |
| Keywords: | manufacturing, trade policy, uncertainty, offshoring, supply chains, employment, China, World Trade Organizations, PNTR |
| JEL: | F13 F16 J23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4563&r=lab |
| By: | Tano, Sofia (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | The present paper estimates the relationship between migration across labour-market regions and the subsequent changes in earnings in Sweden by using the individual’s grade point average (GPA) from the final year of comprehensive school as a proxy for ability. This measure aims to capture heterogeneity in the effects of mobility on earnings for individuals conditional on educational attainment and other observed traits. Register data from Sweden, including two whole cohorts of individuals, is used. A difference-in-difference propensity score matching estimator is applied to estimate the relationship between income and migration up to seven years after migrating. The results show variation between different ability groups with respect to the return to regional migration. There are indications of larger gains for individuals holding top grades, while the bottom half seems to benefit less, or have slightly negative returns. The difference in return to migration across GPA quartiles is larger for women than for men. |
| Keywords: | Human capital; income; internal migration; propensity score matching |
| JEL: | J24 J31 J61 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0880&r=lab |
| By: | Sari Pekkala Kerr; William R. Kerr; William F. Lincoln |
| Abstract: | We study the impact of skilled immigrants on the employment structures of U.S. firms using matched employer-employee data. Unlike most previous work, we use the firm as the lens of analysis to account for a greater level of heterogeneity and the fact that many skilled immigrant admissions are driven by fi rms themselves (e.g., the H-1B visa). OLS and IV speci cations find rising overall employment of skilled workers with increased skilled immigrant employment by firm. Employment expansion is greater for younger natives than their older counterparts, and departure rates for older workers appear higher for those in STEM occupations compared to younger worker. |
| Keywords: | Immigration, Employment, Firms, Age, Scientists, Engineers, Inventors, H-1B. |
| JEL: | F15 F22 J44 J61 O31 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2014-1071&r=lab |
| By: | Marco Caliendo; Markus Gehrsitz |
| Abstract: | This paper applies semiparametric regression models to shed light on the relation-ship between body weight and labor market outcomes in Germany. We find conclusive evidence that these relationships are poorly described by linear or quadratic OLS specifications, which have been the main approaches in previous studies. Women's wages and employment probabilities do not follow a linear relationship and are highest at a body weight far below the clinical threshold of obesity. This indicates that looks, rather than health, is the driving force behind the adverse labor market outcomes to which overweight women are subject. Further support is lent to this notion by the fact that wage penalties for overweight and obese women are only observable in white-collar occupations. On the other hand, bigger appears to be better in the case of men, for whom employment prospects increase with weight, albeit with diminishing returns. However, underweight men in blue-collar jobs earn lower wages because they lack the muscular strength required in such occupations. |
| Keywords: | Obesity, wages, employment, semiparametric regression, gender differences |
| JEL: | J31 J71 C14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp631&r=lab |
| By: | Prantl, Susanne; Spitz-Oener, Alexandra (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| 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." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Gütermarkt, Arbeitsmarkt, Regulierung, Binnenwanderung, Arbeitsmigration, institutionelle Faktoren, staatlicher Zusammenschluss, Handwerk, Handwerksordnung, Betriebsrat, Betriebsverfassungsgesetz, Arbeitsmarktentwicklung, regionaler Arbeitsmarkt, Einwanderung - Auswirkungen, Einkommenseffekte, Inländer, Westdeutschland, Ostdeutschland |
| JEL: | J61 L50 J3 |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201404&r=lab |
| By: | Ashwini Deshpande (Department of Economics, Delhi School of Economics, Delhi, India); Smriti Sharma (Department of Economics, Delhi School of Economics, Delhi, India) |
| Abstract: | Using the India Human Development Survey data for 2004-05, we employ two methodologies to estimate the earnings structure of household nonfarm businesses owned by Scheduled Castes and Tribes (SCSTs) and non-SCSTs: OLS estimation of mean earnings, and quantile regressions. Correspondingly, we use two decomposition methods: the conventional Blinder-Oaxaca decomposition and Melly's (2006) refinement of the Machado and Mata (2005) decomposition of quantile gaps. We find clear differences in characteristics between SCST-owned and non-SCST owned businesses. The Blinder-Oaxaca decomposition reveals that depending on the specification of explanatory variables, as much as 70 percent of the earnings gap could be attributed to the "unexplained" or the discriminatory component. Quantile regressions reveal that gaps are higher at lower deciles than the higher ones (both raw gaps, as well as after controlling for characteristics), and the decompositions show that the unexplained component is higher at the lower deciles than higher, suggesting that SCST-owned businesses at the lower end of the conditional distribution face greater discrimination, as compared to those at the higher end. Thus, we find strong evidence of a "sticky floor", a phenomenon observed for gender wage gaps in developing countries (incontrast to a "glass ceiling" in developed countries). |
| Keywords: | Caste, discrimination, household nonfarm business, earning gaps, quantile regressions, earnings decomposition. |
| JEL: | J31 J71 C21 O15 O17 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:236&r=lab |
| By: | Venke Furre Haaland; Mari Rege; Kjetil Telle; Mark Votruba (Statistics Norway) |
| Abstract: | Despite well-documented convergence during the later years of the 20th century, labor market attachment remains markedly higher for men than for women. The current paper employs rich longitudinal registry data to investigate the intergenerational transfer of the gender gap in employment. We explore the extent that family- and community-level characteristics, measured in childhood, differentially predict employment for adult Norwegian men and women. Drawing on theories pertaining to the importance of information, skills and gender norms transfer, our empirical analysis demonstrates that a parsimonious set of family- and community-level characteristics can explain a substantial part of the gender gap. These results suggest that female employment continues to be influenced by the intergenerational transfer of beliefs and expectations about family and work. |
| Keywords: | Gender gap; Employment; Labor force particiaption; Intergenerational transfer |
| JEL: | J16 J21 D13 N30 Z13 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:767&r=lab |
| By: | Peter Paz (ITAM); Carlos Urrutia (ITAM) |
| Abstract: | In the last two decades, the Peruvian economy exhibited rapid growth. Moreover, the composition of the labor force improved in terms of education and experience, two variables which are typically associated to higher human capital. The average worker in 2012 had a higher level of education and was one and a half years older than in 1998, reflecting the impact of the demographic transition. However, the average real wage was roughly constant. We show that a decline in the wage premium for education, and to a minor extent for experience, is responsible for the lack of growth in the average real wage. Had these two premia remained constant throughout the period of analysis, average labor earnings would have increased by about 2.6 percent per year, of which 0.7 percentage points are accounted for the changes in the composition of the labor force in terms of age and education. We explore the role of the relative supply of workers with different levels of human capital as an explanation for the decline in the wage premium for education. Finally, we analyze the implications of these findings for some macroeconomic variables, as earnings and wage inequality, the labor share and total factor productivity. |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:2014-005&r=lab |
| By: | Josef Montag |
| Abstract: | Gender differences in productivity, if any, that are unobserved to researchers may produce an omitted variable bias in gender gap studies. Finding a subpopulation with less acute differences in unobserved characteristics would allow this concern to be addressed. This paper argues that gays and lesbians are one such interesting group—for the intra-household division of labor and its effects on market productivity cannot be sex-determined in this subpopulation. Indeed, there are substantial intra-household variations in labor market outcomes and other characteristics; the patterns and magnitudes are similar to different-sex households. Simultaneously, the gender wage gap between gays and lesbians is much smaller than in the heterosexual population; in specifications that control for geographic location it is near zero. These findings suggest that the intra-household division of labor is an important factor driving gender differences in labor market outcomes. Such an interpretation is consistent with recent studies that control for productivity. |
| Keywords: | gender gap; sexual division of labor; discrimination, specialization; |
| JEL: | J16 D10 J22 J24 J70 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp505&r=lab |
| By: | Kapelyuk Sergey |
| Abstract: | To the best of our knowledge, the influence of the minimum wage on poverty in Russia has never before been investigated. Russian data provide a unique opportunity for studying the poverty effects related to the minimum wage due to the significant increases of the minimum wage in recent years, almost complete coverage, and a high representation of full-time workers in poor households. This paper examines the effect of the minimum wage in Russia on the incidence of poverty and transitions into and out of poverty using data from the Russia Longitudinal Monitoring Survey of Higher School of Economics (RLMS-HSE) for the years 2006 to 2011. The results indicate slight poverty-reducing effects of the minimum wage in Russia. |
| JEL: | J31 J38 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:eer:wpalle:14/03e&r=lab |
| By: | Roberto Antonietti (Department of Economics and Management “Marco Fanno”, Italy) |
| Abstract: | The aim of this paper is to provide firm-level evidence on the short-run link between outsourcing and labor productivity using an original dataset of Italian manufacturing firms, and applying a two-stage probit least squares estimator. We find a positive effect on productivity from outsourcing only if firms provide training for the workforce. This indirect impact on productivity is independent of the type of activity outsourced and is bigger in the case of service outsourcing. This can be explained by the different feedback effect of labor productivity on training and by the different type of training provided. While production outsourcing induces an organizational change which stimulates off-the-job training for plant operators, service outsourcing induces firms to train a broader range of occupational profiles - both off and on the job. Similar results emerge for the case of joint outsourcing of both production and service activities. Therefore, we find that outsourcing generates positive productivity effects only if it is part of a broader knowledge management strategy that involves upgrading of workers’ skills. |
| Keywords: | Outsourcing, Productivity, Training, Two-Stage Probit Least Squares |
| JEL: | J24 L24 L25 L60 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.12&r=lab |
| By: | Daysal, N. Meltem (University of Southern Denmark); Orsini, Chiara (London School of Economics) |
| Abstract: | In an aging society, determining which factors contribute to the employment of older individuals is increasingly important. We examine the impact of medical innovations on the employment of middle-aged women focusing on the specific case of Hormone Replacement Therapy (HRT), a common treatment for the alleviation of negative menopausal symptoms. HRT medications were among the most popular prescriptions in the United States until 2002 when the Women's Health Initiative Study – the largest randomized control trial on women ever undertaken – documented the health risks associated with their long term use. We exploit the release of these findings within a Fixed Effect Instrumental Variable framework to address the endogeneity in HRT use. Our results indicate substantial benefits of HRT use to the short-term employment of middle-aged women. |
| Keywords: | employment, pharmaceutical treatments, Hormone Replacement Therapy |
| JEL: | I1 H8 J2 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7993&r=lab |
| By: | Mariana Pereira-López (Postdoctoral Fellow Universidad Iberoamericana) |
| Abstract: | This paper analyzes the effects of localized labor demand shocks in the tradable sector, such as the establishment of a large tradable firm in a municipality, over nontradable formal and informal jobs in the case of Mexico. Results indicate that locations that experienced this shock have between 8 and 13 thousand more jobs than other municipalities over a ten--year period. Indirect job creation is similar in both the formal and the informal sectors, but informality appears to be more vulnerable to negative shocks. Furthermore, the effects of shocks are symmetric in the formal sector but not in the informal, where negative shocks have greater effects over nontradable employment. |
| JEL: | J23 R11 R12 R23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0153&r=lab |
| By: | Martina Grunow (University of Augsburg, Department of Economics) |
| Abstract: | Several contributions to the literature have shown that the perception of the individual employment status depends on the surrounding unemployment rate. We argue that expectations are a possible link between unemployment rates and the individual employment status regarding changes in mental well-being. Theoretical foundation comes from models for reference-dependent preferences with endogenous reference points. We provide a simple theoretical model to motivate and structure the empirical analysis. Using data from the German Socio-Economic Panel, we estimate a pairwise interacted model for employment status and expectations over two time periods. Life satisfaction is used as a proxy for mental well-being. To identify a causal effect of unemployment, expectations and their interactions on mental well-being, the analysis relies on fixed effects and exogenous entries into unemployment due to plant closures. We confirm the standard result that unemployment has a negative effect on mental well-being. Furthermore, the results deliver empirical evidence for reference-dependent effects of unemployment on mental well-being. We find that becoming unemployed unexpectedly is more severe as if the unemployment was expected. Therefore, this paper contributes to the understanding of how mental well-being is affected by unemployment and delivers empirical support for the theoretical models of reference-dependent preference wit endogenous reference points determined by expectations. |
| Keywords: | Subjective Well-Being, Unemployment, Reference-Dependence, Reference Points |
| JEL: | C23 D03 D84 I10 I18 J01 J60 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:aug:augsbe:0323&r=lab |
| By: | Berck, Peter (Department of Agricultural and Resource Economics and Policy); Tano, Sofia (Department of Economics, Umeå School of Business and Economics); Westerlund, Olle (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | Migration rates are highest among young adults, especially students, and their location choices affect the regional distribution of human capital, growth and local public sector budgets. Using Swedish register data on young adults, the choice of whether to enroll in education and the choice of location are estimated jointly. The results indicate a systematic selection into investment in further education based on school grades and associated preferences for locations with higher per capita tax bases. For students, the estimates indicate lower preferences for locations with higher shares of older people. The importance of family networks for the choice of location is confirmed. |
| Keywords: | Agglomeration; human capital; local public sector; location choice |
| JEL: | J24 J61 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0878&r=lab |
| By: | Rod Cross (Department of Economics, University of Strathclyde) |
| Abstract: | This paper argues that the natural rate of unemployment hypothesis, in which equilibrium unemployment is determined by “structural†variables alone, is wrong: it is both implausible and inconsistent with the evidence. Instead, equilibrium unemployment is haunted by hysteresis. The curious history of the natural rate hypothesis is considered, curious because the authors of the hypothesis thought hysteresis to be relevant. The various methods that have been used to model hysteresis in economic systems are outlined, including the Preisach model with its selective, erasable memory properties. The evidence regarding hysteresis effects on output and unemployment is then reviewed. The implications for macroeconomic policy, and for the macroeconomics profession, are discussed. |
| Keywords: | Unemployment, Natural Rate Hypothesis, Hysteresis |
| JEL: | B22 C60 E12 E24 E31 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:1402&r=lab |