nep-lab New Economics Papers
on Labour Economics
Issue of 2014‒08‒25
28 papers chosen by
Erik Jonasson
Konjunkturinstitutet

  1. Explaining Cross-country Differences in Labor Market Gaps between Immigrants and Natives in the OECD By Bergh, Andreas
  2. Does Higher Education Quality Matter in the UK? By Chevalier, Arnaud
  3. Does job insecurity deteriorate health? A causal approach for Europe By Caroli, Eve; Godard, Mathilde
  4. Same-Occupation Spouses: Preferences and Search Costs By Mansour, Hani; McKinnish, Terra
  5. Global Engagement and the Occupational Structure of Firms By Davidson, Carl; Heyman, Fredrik; Matusz, Steven; Sjöholm, Fredrik; Zhu, Susan Chun
  6. Employment and Wage Insurance within firms - Worldwide Evidence By Andrew Ellul; Marco Pagano; Fabiano Schivardi
  7. Determinants of Urban Labour Earnings in Tanzania, 2000/01-06 By Vincent Leyaro; Priscilla Twumasi Baffour; Oliver Morrissey; Trudy Owens
  8. Unemployment and Endogenous Reallocation over the Business Cycle. By Carlos Carrillo-Tudela (University of Essex, CESifo and IZA) and Ludo Visschers (The University of Edinburgh & Universidad Carlos III, Madrid)
  9. Immigration, Diversity and the Labour Market Outcomes of Native Workers: Some Recent Developments By Gianmarco I. P. Ottaviano
  10. Adverse Effects of Competition and Rents on Collective Bargaining Status – Evidence from Germany By Finn Martensen
  11. Search Frictions, Financial Frictions and Labour Market Fluctuations in Emerging Markets By Sumru Altug; Serdar Kabaca
  12. Birthplace diversity and productivity spill-overs in firms By René Böheim; Thomas Horvath; Karin Mayr
  13. The levelling effect of product market competition on gender wage discrimination By Hirsch, Boris; Oberfichtner, Michael; Schnabel, Claus
  14. Relative Pay and its Underlying Determinants for Domestic Eldercare Workers in Urban China By Xiao-yuan Dong; Jin Feng; Yangyang Yu
  15. Land Market Restrictions, Women's Labor Force Participation and Wages By Emran, M. Shahe; Shilpi, Forhad
  16. Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain By José I. García Pérez; Ioana Marinescu; Judit Vall Castello
  17. Optimal Wage Redistribution in the Presence of Adverse Selection in the Labor Market By Bastani, Spencer; Blumkin, Tomer; Micheletto, Luca
  18. The Volatility of Earnings: Evidence from High-Frequency Firm-Level Data By Andreas Georgiadis; Alan Manning
  19. Indirect Job Creation and the Informal Sector in Mexico By Mariana Pereira-López
  20. Employment Industry and Occupational Continuity in Germany: From the Nazi Regime to the Post-War Economic Miracle By Puhani, Patrick A.
  21. Immigration, Skill Heterogeneity and Qualification Mismatch By Liu, Xiangbo; Palivos, Theodore; Zhang, Xiaomeng
  22. Actuarial Adjustments, Retirement Behaviour and Worker Heterogeneity By Matthias Giesecke
  23. Competitive Search with Moving Costs By KAWATA Keisuke; NAKAJIMA Kentaro; SATO Yasuhiro
  24. Personality Characteristics, Educational Attainment and Wages: An Economic Analysis Using the British Cohort Study By Pamela Lenton
  25. Flying the nest: How the home department shapes researchers' career paths By Hottenrott, Hanna; Lawson, Cornelia
  26. Employers' Preference for Discrimination By Sue H. Mialon; Seung Han Yoo
  27. Labour Market Integration, Human Capital Formation, and Mobility By Alexander Haupt; Silke Übelmesser
  28. Works councils in family businesses in Germany: Why are there so few? By Schlömer-Laufen, Nadine; Kay, Rosemarie; Holz, Michael

  1. By: Bergh, Andreas (Research Institute of Industrial Economics (IFN))
    Abstract: In most OECD-countries, immigrants have lower employment and higher unemployment than natives. This paper compares nine potential explanations of these gaps. Results are obtained for 21–28 countries using bivariate correlations, OLS-regressions and Bayesian model averaging over all 512 theoretically possible model specifications. Two robust patterns are found. The unemployment gap is bigger in countries where collective bargaining agreements cover a larger share of the labor market. The employment gap is bigger in countries with more generous social safety nets. Five variables have explanatory value in some specifications: Xenophobia, employment protection laws, social expenditure, asylum applications, and the share of immigrants in the population. The education of immigrants and migrant integration policies have no explanatory value. A trade-off seems to exist such that countries with smaller labor market gaps have higher income inequality.
    Keywords: Labor market segregation; Immigration; Insider-outside hypothesis
    JEL: E24 J51 J60 J71
    Date: 2014–08–12
    URL: http://d.repec.org/n?u=RePEc:hhs:iuiwop:1036&r=lab
  2. By: Chevalier, Arnaud (Royal Holloway, University of London)
    Abstract: This paper estimates the financial returns to higher education quality in the UK. To account for the selectivity of students to institution, we rely on a selection on observable assumptions. We use several estimates including the Generalised Propensity Score of Hirano and Imbens, which relies on a continuous measure of institutional quality. This highlights that the returns to quality are heterogenous, and mostly driven by high quality institutions. Moving from an institution in the 3rd quality quartile to a top quality institution is associated with a 7% increase in earnings.
    Keywords: college quality, returns to education, generalised propensity score
    JEL: I22 J31
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8363&r=lab
  3. By: Caroli, Eve; Godard, Mathilde
    Abstract: This paper estimates the causal effect of perceived job insecurity – i.e. the fear of involuntary job loss – on health in a sample of men from 22 European countries. We rely on an original instrumental variable approach based on the idea that workers perceive greater job security in countries where employment is strongly protected by the law, and relatively more so if employed in industries where employment protection legislation is more binding, i.e. in industries with a higher natural rate of dismissals. Using cross-country data from the 2010 European Working Conditions Survey, we show that when the potential endogeneity of job insecurity is not accounted for, the latter appears to deteriorate almost all health outcomes. When tackling the endogeneity issue by estimating an IV model and dealing with potential weak-instrument issues, the health-damaging effect of job insecurity is confirmed for a limited subgroup of health outcomes, namely suffering from headaches or eyestrain and skin problems. As for other health variables, the impact of job insecurity appears to be insignificant at conventional levels.
    Keywords: job insecurity; health; instrumental variables
    Date: 2014–07
    URL: http://d.repec.org/n?u=RePEc:cpm:docweb:1410&r=lab
  4. By: Mansour, Hani (University of Colorado Denver); McKinnish, Terra (University of Colorado, Boulder)
    Abstract: Married individuals match with spouses who share their occupation more frequently than predicted by chance, suggesting either a preference for same-occupation matches or lower search costs within occupation. To distinguish between these explanations, we use a differences-in-differences strategy that compares the difference in wages between same-occupation husbands and different-occupation husbands across occupations with different percent male workers. Under the preferences mechanism, the difference should be decreasing in percent male. Under the search cost mechanism, the difference should be increasing in percent male. Our results are consistent with the search cost explanation, especially in occupations with greater degree of workplace communication.
    Keywords: marital sorting, occupation, sex ratio, search frictions
    JEL: J12 J24
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8370&r=lab
  5. By: Davidson, Carl (Michigan State University); Heyman, Fredrik (Research Institute of Industrial Economics); Matusz, Steven (Michigan State University); Sjöholm, Fredrik (Department of Economics, Lund University); Zhu, Susan Chun (Michigan State University)
    Abstract: Engagement in foreign markets can have an impact on firm organization and on the type of occupations that a firm needs. We examine the effect of globalization on the occupational mix using detailed Swedish data that cover all firms and a representative sample of the labor force for 1997-2005. We find a robust relationship between a firm’s degree of international integration and its occupational mix. Multinationals, which are the most globally engaged firms, have a distribution of occupations skewed toward the more skilled. Non-multinational exporters have a distribution of occupations less skewed toward skilled compared to multinationals, but more skewed toward skilled occupations compared to Swedish non-exporters (which are the least globally engaged). Moreover, firms tend to have an even more skill intensive distribution of occupations when they mainly export to far away markets, or when they export differentiated goods. Our results are little changed (1) when we control for firm size, productivity, capital intensity, and firm age, (2) when we control for offshoring and R&D expenditures; (3) when we use alternative methods to rank occupations, or (4) when we conduct alternative robustness tests. In addition, the results are very similar for manufacturing and non-manufacturing, and for foreign and Swedish multinationals. We interpret our results using a decomposition motivated by recent theoretical models of selection into exporting and FDI.
    Keywords: Occupational mix; Globalization; Multinational Enterprises; Export; Firms
    JEL: F14 F16 J20
    Date: 2014–06–02
    URL: http://d.repec.org/n?u=RePEc:hhs:lunewp:2014_022&r=lab
  6. By: Andrew Ellul (Kelley School of Business, Indiana University, CSEF and ECGI); Marco Pagano (University of Naples "Federico II", CSEF, EIEF, CEPR and ECGI); Fabiano Schivardi (LUISS, EIEF and CEPR)
    Abstract: We investigate the determinants of firms’ implicit employment and wage insurance to employees against industry-level and idiosyncratic shocks. We rely on differences between family and nonfamily firms to identify the supply of insurance, and between national public insurance programs to gauge workers’ demand for insurance. Using firm-level data from 41 countries, we find that family firms provide greater employment protection but less wage stability. Employment protection comes at a price: family firms pay 5 percent lower wages, controlling for country, industry and time effects. The additional protection afforded by family firms is greater, and the wage discount larger, the less generous the public unemployment insurance program, indicating that firm and government employment insurance are substitutes. The cross-country evidence is broadly confirmed by Italian employee-employer matched data, which also show that in family firms the adjustment to shocks occurs mostly through the hiring margin, while separations are not responsive to shocks.
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:eie:wpaper:1402&r=lab
  7. By: Vincent Leyaro; Priscilla Twumasi Baffour; Oliver Morrissey; Trudy Owens
    Abstract: This paper presents analysis of urban areas in the Tanzania Integrated Labour Force Survey (ILFS) for 2000/01 and 2006 and the Urban Household Worker Survey (UHWS) for 2004, 2005 and 2006. The main aims are to estimate returns to education and to identify, conditioned on education and labour market experience, earnings differentials by gender and across sectors (public, private and informal). We confirm the general pattern that returns to education are increasing in level and years of education but note differences across sector of employment and the earnings distribution. Public sector workers (who tend to be more educated with longer tenure) and the self-employed with employees (small and micro enterprises) have the highest earnings whereas informal sector (self-employed without employees) and private sector wage earners have similar earnings on average (except for wage earners in large firms who have considerably higher earnings). Post-primary education is important in determining selection into wage employment, especially for the public sector. Allowing for selection, education has no additional effect on public sector wages, returns to education are concave for the self-employed but non-concave for the private wage sector. Quantile regressions reveal differential returns to education across the earnings distribution: primary and secondary education are inequality-reducing (more beneficial to those on lower earnings) whereas tertiary education is inequality-increasing. JEL No.:J6, J62, J69
    Keywords: Labour Earnings, Returns to Education, Urban Labour, Tanzania
    URL: http://d.repec.org/n?u=RePEc:not:notcre:14/03&r=lab
  8. By: Carlos Carrillo-Tudela (University of Essex, CESifo and IZA) and Ludo Visschers (The University of Edinburgh & Universidad Carlos III, Madrid)
    Abstract: This paper studies unemployed workers’ decisions to change occupations, and their impact on fluctuations in aggregate unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and reallocation unemployment. We document new evidence on unemployed workers’ gross occupational mobility and use it to calibrate the model. We show that rest unemployment is the main driver of unemployment fluctuations over the business cycle and causes cyclical unemployment to be highly volatile. The resulting unemployment duration distribution generated by the model responds realistically to the business cycle, creating substantial longer-term unemployment in downturns. Finally, rest unemployment also makes our model simultaneously consistent with procyclical occupational mobility of the unemployed, countercyclical job separations into unemployment and a negatively-sloped Beveridge curve.
    Keywords: Unemployment, Business Cycle, Rest, Search, Occupational Mobility.
    JEL: E24 E30 J62 J63 J64
    Date: 2014–05–01
    URL: http://d.repec.org/n?u=RePEc:edn:esedps:241&r=lab
  9. By: Gianmarco I. P. Ottaviano
    Abstract: This brief essay provides a selective discussion of how in recent years economists in the neoclassical tradition have addressed the questions whether and how immigration affects native workers' labour market outcomes. In particular, it discusses: the distinction between the displacement, productivity and amenity effects of immigration; the issues that arise in using wage changes to identify those effects; and the problem of assessing a causal link from immigration to natives' labour market outcomes.
    Keywords: Immigration, wages, productivity, cultural diversity
    JEL: F22 J31 J61
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1292&r=lab
  10. By: Finn Martensen (Department of Economics, University of Konstanz, Germany)
    Abstract: Why do firms and workers bargain individually or collectively? I test the effect of product market competition and rents with German establishment data. Against intuition, competition and rents have opposite effects. Competition has a u-shaped effect on the probability of collective bargaining. This contradicts the existing theory (Ebell and Haefke 2006; Boeri and Burda 2009). By contrast, firms with higher rents are more prone to collective bargaining. For both competition and rents, the effect is stronger for sector-level than for firm-level collective bargaining. Indicators of higher productivity also matter: A higher export share drives firms into individual wage bargaining, while a higher share of workers with higher education drives firms into firm-level bargaining. Thus, the interplay between productivity, competition, and the wage setting regime is much more subtle than suggested by the existing theory.
    Keywords: Collective bargaining, Wage determinations, Productivity, Product market competition, Establishment data
    JEL: J24 J52 J64 C25
    Date: 2014–08–07
    URL: http://d.repec.org/n?u=RePEc:knz:dpteco:1415&r=lab
  11. By: Sumru Altug; Serdar Kabaca
    Abstract: This paper examines the role of the extensive and intensive margins of labour input in the context of a business cycle model with a financial friction. We document significant variation in the hours worked per worker for many emerging-market economies. Both employment and hours worked per worker are positively correlated with each other and with output. We show that a search-theoretic context in a small open-economy model requires a small income effect to explain these regularities at the expense of a smaller wage response. On the other hand, introducing a financial friction in the form of a working capital requirement can explain the observed movements of labour market variables such as employment and hours worked per worker, as well as other distinguishable business cycle characteristics of emerging economies. These include highly volatile and cyclical real wages, labour share, and consumption.
    Keywords: Business fluctuations and cycles; Labour markets; Development economics; International topics; Interest rates
    JEL: F41 E44 J40
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:bca:bocawp:14-35&r=lab
  12. By: René Böheim; Thomas Horvath; Karin Mayr
    Abstract: We determine workforce composition and wages in rms in the presence of productivity spill-overs between co-workers. In equilibrium, workers' wages depend on the production struc- ture of rms, own group size, and aggregate workforce composition in the rm. We estimate the wage eects of workforce diversity and own group size by birthplace and the implied pro- duction structure in Austrian rms using a comprehensive matched employer-employee data set. In our data, we identify a positive eect of workforce diversity and a negative eect of own group size on wages, which suggest that workers of dierent birthplaces are complements in production on average.
    JEL: D21 D22 F22 J31
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:vie:viennp:1403&r=lab
  13. By: Hirsch, Boris; Oberfichtner, Michael; Schnabel, Claus
    Abstract: Using linked employer-employee panel data for West Germany that include direct information on the competition faced by plants, we investigate the effect of product market competition on the gender pay gap. Controlling for match fixed effects we find that intensified competition significantly lowers the unexplained gap in plants with neither collective agreements nor a works council. Conversely, there is no effect in plants with these types of worker codetermination, which are unlikely to have enough discretion to adjust wages in the short run. We also document a larger competition effect in plants with few females in their workforces. Our findings are in line with Beckerian taste-based employer wage discrimination that is limited by competitive forces. -- Diese Studie nutzt verknüpfte Arbeitgeber-Arbeitnehmer-Paneldaten für Westdeutschland, welche ein direktes Maß des betrieblichen Wettbewerbsdrucks enthalten, um den Effekt von Wettbewerbsdruck auf Gütermärkten auf das geschlechtsspezifische Lohndifferential zu untersuchen. Bei Kontrolle für matchfixe Effekte finden wir, dass intensiverer Wettbewerb das unerklärte Geschlechterlohndifferential in Betrieben, die weder einen Betriebsrat haben noch tarifgebunden sind, signifikant reduziert. Im Gegensatz dazu zeigt sich kein Effekt in Betrieben mit einer dieser Mitbestimmungsformen, die vermutlich nicht genug Spielraum haben, um Löhne kurzfristig anzupassen. Wir zeigen außerdem, dass der Effekt von Wettbewerbsdruck in Betrieben mit einem geringen Frauenanteil in der Belegschaft stärker ausfällt. Unsere Ergebnisse sind mit Beckers Theorie präferenzbasierter Diskriminierung seitens der Arbeitgeber vereinbar, die durch Wettbewerbsdruck in Schranken gehalten wird.
    Keywords: gender pay gap,discrimination,product market competition
    JEL: J16 J31 J71
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:zbw:faulre:94&r=lab
  14. By: Xiao-yuan Dong; Jin Feng; Yangyang Yu
    Abstract: The market of domestic services in China has grown rapidly since the country embarked on market transition in the late 1970s. Domestic workers for eldercare are in especially high demand as a result of the aging population and the changing family structure. This paper examines the relative pay of domestic workers for eldercare and its underlying determinants. The estimates show that holding constant the observable individual characteristics, domestic workers for eldercare earn 24 percent less than do other types of workers in the service sector in Shanghai. The analysis attributes the low wage of eldercare workers to the fact that domestic work is culturally devaluated, that eldercare is performed by workers from the most marginalized segment of the labour force in the cities, and that the users of eldercare are relatively poor among the users of paid domestic services.
    Date: 2014–07
    URL: http://d.repec.org/n?u=RePEc:win:winwop:2014-01&r=lab
  15. By: Emran, M. Shahe; Shilpi, Forhad
    Abstract: We analyze the effects of land market restrictions on the rural labor market outcomes for women. The land restrictions can have a gender and age bias because of an ex-post asymmetry in migration costs arising from older women's comparative advantage in home goods production. For identification, we exploit a natural experiment in Sri Lanka where historical malaria played a unique role in land policy. We provide robust evidence of a positive effect of land restrictions on women's labor force participation, and negative effects on female wages. The empirical results suggest that the burden of land market restrictions falls disproportionately on older women.
    Keywords: Land Market Restrictions, Labor Market, Women's Labor Force Participation, Wage, Sri Lanka, Historical Malaria
    JEL: J3 J4 O1
    Date: 2014–08–17
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:57989&r=lab
  16. By: José I. García Pérez; Ioana Marinescu; Judit Vall Castello
    Abstract: Fixed-term contracts have low firing costs and can thus help low skilled youth find a first job faster. But do these workers get a more rewarding career? Using Spanish social security data, we compare the careers of native male high-school dropouts who entered the labor market just before and just after a large liberalization in the use of fixed-term contracts in 1984. Using a cohort regression discontinuity design we find that the reform raised the likelihood of working before age 20. However, by substantially increasing the number of employment spells it reduced workers' accumulated employment up to 2006 by almost 200 days and accumulated wages by 22%. These effects are concentrated during the first 5-10 years of these young workers' career. We conclude that widespread fixed-term contracts have harmed the careers of low-skilled workers.
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:fda:fdaddt:2014-08&r=lab
  17. By: Bastani, Spencer (Uppsala Center for Fiscal Studies); Blumkin, Tomer (Department of Economics, Ben Gurion University, Israel;); Micheletto, Luca (Uppsala Center for Fiscal Studies)
    Abstract: In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection in the labor market due to asymmetric information between workers and firms. We show that an appropriate choice of the tax schedule enables the government to affect the wage distribution by controlling the transmission of information in the labor market. This represents an additional channel through which the government can foster the pursuit of its redistributive goals.
    Keywords: adverse selection; labor market; optimal taxation; pooling; redistribution
    JEL: D82 H21 J31
    Date: 2014–07–23
    URL: http://d.repec.org/n?u=RePEc:hhs:uufswp:2014_008&r=lab
  18. By: Andreas Georgiadis; Alan Manning
    Abstract: The first contribution of this paper is to use UK monthly firm-level data to show that there is a large amount of transitory volatility in firm-level average earnings from month to month. We conclude that this cannot all be explained away as the consequence of measurement error, composition effects or variation in remunerated hours i.e. we suggest this volatility is real. The second contribution of the paper is to argue that this volatility cannot be interpreted as high flexibility in the shadow cost of labour to employers because of sizeable frictions in the labour market. Indeed we point out that it is the existence of frictions that allow the volatility to exist. Consequently we argue that this volatility would be expected to have only small allocational consequences and that measures of base wages are more useful in drawing conclusions about wage flexibility.
    Keywords: Wages, wage flexibility
    JEL: E24 J30
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1290&r=lab
  19. By: Mariana Pereira-López (Universidad Iberoamericana, Ciudad de México)
    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: 2014–08–20
    URL: http://d.repec.org/n?u=RePEc:smx:wpaper:2014001&r=lab
  20. By: Puhani, Patrick A. (Leibniz University of Hannover)
    Abstract: Using retrospective survey data that covers 1939, 1950, 1960, and 1971, I compare individual-level changes in employment industry and occupational status in Germany from the beginning of World War II to the post-war reconstruction era dubbed the Economic Miracle (Wirtschaftswunder). This comparison reveals that, with only a few exceptions, labor allocation developments remained relatively stable even in the face of huge political and macroeconomic change.
    Keywords: employment, evolution, regime change, revolution, Germany, Arab Spring, Iraq
    JEL: N34 J01
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8372&r=lab
  21. By: Liu, Xiangbo; Palivos, Theodore; Zhang, Xiaomeng
    Abstract: We investigate the effects of US immigration on native workers in a search and matching environment that allows for skill heterogeneity, differential search cost, cross-skill matching and imperfect transferability of human capital across borders. We find that cross-skill matching benefits the unskilled and hurts the skilled native workers. Similarly, new unskilled immigration benefits the low-skilled native workers and hurts the high-skilled. On the other hand, new skilled immigration benefits both skilled and unskilled natives. Moreover, when we simulate the effects of the actual US immigration influx that took place between the years 2000 and 2009, we find that both skilled and unskilled native workers gain. We also find that initially an improvement in the transferability of human capital benefits the high-skilled natives at the expense of the low-skilled. Nevertheless, below a certain overeducation ratio, further improvements in the transferability of human capital make both types of native workers worse off.
    Keywords: Immigration, Search and Matching, Skill Heterogeneity, Occupational Mismatch, Overeducation, Transferability of Human Capital
    JEL: F22 J61 J64
    Date: 2014–08–16
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:57981&r=lab
  22. By: Matthias Giesecke
    Abstract: The behavioural response with respect to actuarial adjustments in the German public pension system is analysed. The introduction of actuarial adjustments serves as a source of exogenous variation to estimate discrete time transition rates into retirement. The analysis is conducted on administrative data from social security records and on survey data in a comparative scenario. Probability mass points that occur for institutional reasons and due to social norms are controlled for. Moreover, worker heterogeneity is taken into account, which has not been addressed in the previous literature. The results show that on average retirement is postponed by five months due to financial incentives via actuarial adjustments. However, this response is about 40 per cent lower for manual workers compared to non-manual workers which indicates that their retirement income may deteriorate.
    Keywords: Natural experiment; actuarial adjustments; retirement; worker heterogeneity
    JEL: C41 H55 J26
    Date: 2014–06
    URL: http://d.repec.org/n?u=RePEc:rwi:repape:0490&r=lab
  23. By: KAWATA Keisuke; NAKAJIMA Kentaro; SATO Yasuhiro
    Abstract: We developed a competitive search model involving multiple regions, geographically mobile workers, and moving costs. Equilibrium mobility patterns were analyzed and characterized, and the results indicate that shocks to a particular region, such as a productivity shock, can propagate to other regions through workers' mobility. Moreover, equilibrium mobility patterns are not efficient because of the existence of moving costs, implying that they affect social welfare because not only are they costs but also they distort equilibrium allocation. By calibrating our framework to Japanese regional data, we demonstrate the extent to which changes in moving costs affect unemployment and social welfare.
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:eti:dpaper:14052&r=lab
  24. By: Pamela Lenton (Department of Economics, University of Sheffield, UK)
    Abstract: We look at the influence of personality traits and cognitive ability on both educational attainment and on the wages of individuals in the UK labour market at age 33 using the British Cohort Study. We control for a new cluster of nine personality characteristics, some of which we consider likely to influence labour market outcomes. We find that some personality characteristics have significant influence on the acquisition of educational qualifications, in particular internal and external locus of control, conscientiousness and extroversion. Our findings on the extrovert-introvert dimension of personality are paradoxical: we find that males with extrovert personalities have a significantly reduced probability of gaining degree level education, but within the labour market males are rewarded for this characteristic.
    Keywords: educational attainment; human capital; personality characteristics
    JEL: J24
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:shf:wpaper:2014011&r=lab
  25. By: Hottenrott, Hanna; Lawson, Cornelia
    Abstract: Academic researchers face mobility related decisions throughout their careers. We study the importance of team and organisational characteristics of the home departments for career choices of departing researchers in the fields of science and engineering at higher education institutions in Germany. We find that the organisational environments - the nests - shape career paths. Research funding, research performance in terms of patents and publications as well as the industry ties of department heads shape job choices. In particular, public research grants increase the probability that departing researchers take a research job at a university or public research centre, while grants from industry increase the likelihood that they take a job in industry. Publication performance of the department head relates to R&D jobs in public, but not in industry and patents predict the probability that departing researchers will move to small and medium-sized firms. For these firms seeking technological knowledge from former university employees may be particularly crucial. Academic start-ups are more likely to be a job destination for departing researchers from technical universities, from departments with higher publication output and with a research focus on experimental development. --
    Keywords: R&D,Researcher Mobility,Research Funding,Science-Industry Technology Transfer,Academic Entrepreneurship,Academic Careers
    JEL: I23 J24 O3
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:zbw:dicedp:153&r=lab
  26. By: Sue H. Mialon; Seung Han Yoo
    Abstract: This paper models employers' preference for discrimination toward ex ante identical groups of workers when the workers must compete for limited positions. Employers benefit from discrimination against minority workers because it can reduce the overall risk from workers' noisy signals as it increases the expected quality of "majority" workers' signals and their chance to win the competition for the limited positions. We show that employers can influence the selection of a discriminatory equilibrium by choosing the set of finalists in competition primarily from a majority group. We discuss the implications of Equal Opportunity Laws in this context.
    Date: 2014–05
    URL: http://d.repec.org/n?u=RePEc:emo:wp2003:1402&r=lab
  27. By: Alexander Haupt (Plymouth University and CESifo); Silke Übelmesser (School of Economics and Business Administration, Friedrich-Schiller-University Jena, and CESifo)
    Abstract: In this paper, we analyse the implications of labour market integration in a two-region model with local human capital externalities and congestion eects. We show that integration can be a double-edged sword. Integration and the ensuing agglomeration of skilled labour can reduce 'real' income in both regions. Even if there is a 'winning' region, human capital and real income in the two regions together might decline (but need not). However, integration can increase total real income even if it depresses human capital formation. We further explore how the degree of labour mobility and the strength of the congestion eects shape the impact of integration on human capital and income.
    Keywords: Human capital, migration, labour market integration, agglomeration
    JEL: F22 R23 J24 R12
    Date: 2014–08–19
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-020&r=lab
  28. By: Schlömer-Laufen, Nadine; Kay, Rosemarie; Holz, Michael
    Abstract: Works councils are an inherent part of the German economic and social system. An analysis of the prevalence of works councils in Germany reveals that they are not uniformly distributed across all types of businesses. Works councils occur less frequently in owner-managed businesses - regardless of their size - than in companies run by employed managers. The reasons for this low prevalence are still largely unknown as there has been practically no discussion of this phenomenon in the literature so far. This paper delivers first answers to this question by conducting an exploratory study. Based on a literature analysis and an empirical analysis of a secondary dataset, we found some explanations why works councils are so rarely established in family businesses. These explanations refer to special characteristics of the owner-manager (i. e. eagerness for independence) as well as to special characteristics of family businesses as a whole (i. e. performance and organizational changes). -- Betriebsräte sind ein inhärenter Bestandteil des deutschen Wirtschafts- und Sozialsystems. Sie sind allerdings nicht gleichermaßen über alle Unternehmenstypen verbreitet. So sind sie - unabhängig von ihrer Größe - seltener in eigentümergeführten Unternehmen vorzufinden als in managementgeführten. Die Gründe für diesen geringeren Verbreitungsgrad müssen als weitgehend unbekannt gelten, da sich weder die Familienunternehmen- noch die Mitbestimmungsforschung nennenswert damit befasst hat. Die vorliegende, explorative Studie liefert auf Basis einer Literatur- und einer Sekundärdatenanalyse erste Erklärungen. So scheinen besondere Charakteristika des Eigentümer-Unternehmers wie z. B. Unabhängigkeitsstreben und besondere Charakteristika des Familienunternehmens wie z. B. Unternehmenserfolg oder organisationale Veränderungen die Etablierung eines Betriebsrates zu beeinflussen.
    Keywords: works councils,family business,exploratory study
    JEL: G32 J53 L20 M54
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:zbw:ifmwps:0314&r=lab

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