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on Labour Economics |
| By: | Claudio Michelacci (EIEF); Joseph Pijoan-Mas (CEMFI and CEPR) |
| Abstract: | We consider a competitive equilibrium growth model where technological progress is embodied into new jobs which are assigned to workers of different skills. In every period workers decide whether to actively participate in the labor market and if so how many hours to work on the job. Balanced growth requires that the job technology is complementary with the worker's total labor input in the job, which is jointly determined by his skill and his working hours. Since lower skilled workers can supply longer hours, we show that the equilibrium features positive assortative matching (higher skilled workers are assigned to better jobs) only if differences in consumption are small relative to differences in worker skills. When the pace of technological progress accelerates, wage inequality increases and workers participate less often in the labor market but supply longer hours on the job. This mechanism can explain why, as male wage inequality has increased in the US, labor force participation of male workers of different skills has fallen while their working hours have increased. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:eie:wpaper:1410&r=lab |
| By: | Uwe Jirjahn |
| Abstract: | A model by Huebler and Jirjahn (2003) suggests that rent-seeking activities of works councils are more limited in establishments covered by collective bargaining. The model predicts that works councils should have a stronger productivity effect and a weaker wage effect in covered than in uncovered establishments. While empirical studies have provided supporting evidence for the predicted productivity effects, the results on the wage effects of works councils in covered and uncovered establishments are very mixed. This article extends Huebler and Jirjahn’s model to reconcile the empirical findings. The extended model takes into account that collective bargaining coverage not only limits the opportunities for rent-seeking activities but also strengthens the effectiveness of performance-enhancing work practices negotiated between employers and works councils. The latter influence of collective bargaining coverage can result in a higher wage effect of works councils in covered establishments. |
| Keywords: | Works Council, Collective Bargaining Coverage, Productivity, Wages |
| JEL: | J24 J31 J51 J53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:trr:wpaper:201413&r=lab |
| By: | Brahim Boualam |
| Abstract: | This paper evaluates the influence of urban density on the quality of the match between workers' field of education and their first occupation. Using survey data on young individuals that entered the French labor market in 2004, I propose an original measure of skill matching and find that the quality of the match increases with urban density. I also show that a better skill match is associated with higher wages and that this matching premium comes in addition to the urban wage premium. |
| Keywords: | agglomeration, skills, labor matching, urban wage premium. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:gen:geneem:14094&r=lab |
| By: | Arseneau, David M. (Board of Governors of the Federal Reserve System (U.S.)); Epstein, Brendan (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | We study the role of labor market mismatch in the adjustment to a trade liberalization that results in the offshoring of high-tech production. Our model features two-sided heterogeneity in the labor market: high- and low-skilled workers are matched in a frictional labor market with high- and low-tech firms. Mismatch employment occurs when high-skilled workers choose to accept a less desirable job in the low-tech industry. The main result is that--perhaps counter-intuitively--this type of job displacement is actually beneficial for the labor market in the country doing the offshoring. Mismatch allows the economy to reallocate domestic high-skilled labor across both high- and low-tech industries. In doing so, mismatch dampens both the increase in the aggregate unemployment rate and the decline in aggregate wages that come as a consequence of shifting domestic production abroad. |
| Keywords: | Labor market frictions; globalization; trade liberalization; heterogeneous workers; search and matching |
| Date: | 2014–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1118&r=lab |
| By: | Kleiner, Morris M. (Federal Reserve Bank of Minneapolis); Gittleman, Maury (Bureau of Labor Statistics); Klee, Mark (Census Bureau) |
| Abstract: | Recent assessments of occupational licensing have shown varying effects of the institution on labor market outcomes. This study revisits the relationship between occupational licensing and labor market outcomes by analyzing a new topical module to the Survey of Income and Program Participation (SIPP). Relative to previously available data, the topical module offers more detailed information on occupational licensing from government, with a larger sample size and access to a richer set of person-level characteristics. We exploit this larger and more detailed data set to examine the labor market outcomes of occupational licensing and how workers obtain these licenses from government. More specifically, we analyze whether there is evidence of a licensing wage premium, and how this premium varies with aspects of the regulatory regime such as the requirements to obtain a license or certification and the level of government oversight. After controlling for observable heterogeneity, including occupational status, we find that those with a license earn higher pay, are more likely to be employed, and have a higher probability of retirement and pension plan offers. |
| Keywords: | Occupational licensing; Wages; Non-wage benefits |
| JEL: | J30 J44 L50 |
| Date: | 2014–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmsr:504&r=lab |
| By: | John K. Dagsvik; Zhiyang Jia (Statistics Norway) |
| Abstract: | This paper discusses aspects of a framework for modeling labor supply where the notion of job choice is fundamental. In this framework, workers are assumed to have preferences over latent job opportunities belonging to worker-specific choice sets from which they choose their preferred job. The observed hours of work and wage is interpreted as the job-specific hours and wage of the chosen job. The main contribution of this paper is an analysis of the identification problem of this framework under various conditions, when conventional cross-section micro-data are applied. The modeling framework is applied to analyze labor supply behavior for married/cohabiting couples using Norwegian micro data. Specifically, we estimate two model versions with in the general framework. Based on the empirical results, we discuss further qualitative properties of the model versions. Finally, we apply the preferred model version to conduct a simulation experiment of a counterfactual policy reforms. |
| Keywords: | labor supply; non-pecuniary job attributes; latent choice sets; random utility models; identification |
| JEL: | J22 C51 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:786&r=lab |
| By: | Aleksandra Parteka (Gdansk University of Technology, Gdansk, Poland); Joanna Wolszczak-Derlacz (Gdansk University of Technology, Gdansk, Poland) |
| Abstract: | This paper assesses the impact of international outsourcing/offshoring practices on the process of wage equalization across manufacturing sectors in a sample of EU27 economies (1995-2009). We discriminate between heterogeneous wage effects on different skill categories of workers (low, medium and high skill). The main focus is on the labour market outcomes of vertical integration, so we augment a model of conditional wage convergence through the inclusion of sector-specific broad and narrow outsourcing/offshoring indices based on input-output data (World Input Output Database, April 2012 release). Two-way relations between trade and wages are addressed through the use of a gravity-based sector-level instrument. We find no evidence supporting unconditional skill-specific wage convergence in EU sectors. In a conditional setting, (slow) wage convergence takes place, but international outsourcing plays a negligible role in wage equalization. Moreover, even though regression results indicate that offshoring reduces the wage growth of domestic medium- and low-skilled workers, we show that this negative effect is economically small. |
| Keywords: | wage, convergence, international outsourcing, offshoring, input-output |
| JEL: | F14 F16 C67 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:gdk:wpaper:24&r=lab |
| By: | Schnitzlein, Daniel D. |
| Abstract: | Motivated by contradictory evidence on intergenerational mobility in Germany, I present a cross-country comparison of Germany and the US, reassessing the question of whether intergenerational mobility is higher in Germany than the US. I can reproduce the standard result from the literature, which states that the German intergenerational elasticity estimates are lower than those for the US. However, based on highly comparable data, even a reasonable degree of variation in the sampling rules leads to similar estimates in both countries. I find no evidence for nonlinearities along the fathers’ earnings distribution. In contrast, the analysis shows that mobility is higher for the sons at the lowest quartile of the sons’ earnings distribution in both countries. In Germany this result is mainly driven by a high downward mobility of sons with fathers in the upper middle part of the earnings distribution. The corresponding pattern is clearly less pronounced in the US. |
| Keywords: | intergenerational mobility, SOEP, CNEF, Germany, US |
| JEL: | J62 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:han:dpaper:dp-538&r=lab |
| By: | Alzbeta Mullerova |
| Abstract: | Czech conciliation policies, i.e. social, family and employment policies affecting households’ fertility and employment choices, have gone through dramatic changes since the 1989 transition to market economy. After a brief presentation of conciliation policies and practices before and after the transition, we focus on the 1995 Czech Parental Benefit reform and we evaluate its impact on mothers’ labour supply. The payment of parental benefits was extended to 4 years instead of 3 without an equivalent extension of the job protected parental leave, leaving to mothers the choice of either guaranteed employment or additional twelve months of benefits. We use difference-in-differences strategy of identification to assess the net effect of this reform on mother’s labour market participation. We find a sizeable and negative impact on mothers’ probability of return to work at the end of the parental leave. |
| Keywords: | Female Labour Supply, Parental Leave and Benefit, Policy Evaluation |
| JEL: | J13 J16 J18 P30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2014-50&r=lab |
| By: | Aurélie BONEIN (CREM UMR CNRS 6211, University of Rennes 1, France) |
| Abstract: | Whether and how the observability of a coworker’s effort influences an employer’s wage decisions and workers’ effort decisions is a central issue for labor organizations. We conduct an experiment using a three-person gift-exchange game to investigate this matter in the context of wage transparency and heterogeneous abilities. We find that showing a coworker’s effort increases both wages and the difference in wages between two heterogeneously skilled workers when the more able worker is observed. The knowledge of a coworker’s effort increases the level of reciprocity exhibited by observed workers (peer effects), whereas it reduces that exhibited by workers who are observers. Overall, displaying coworker’s effort has a beneficial effect on reciprocity. Regardless of their ability, workers exert levels of effort that are positively related to those of their coworkers. This strategic complementarity of efforts is partially explained by inequity aversion. |
| Keywords: | Heterogeneous ability, Gift-exchange game, Social comparison, Peer effect, Reciprocity |
| JEL: | C91 D03 J24 J31 J82 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201411&r=lab |
| By: | Guido Cozzi; Giammario Impullitti |
| Abstract: | The US labour market has experienced a remarkable polarization in the 1980s and 1990s. Moreover, recent empirical work has documented a sharp increase in the wealth to income ratio in that period. Contemporary to these inequality trends, the US faced a fast technological catch-up as European countries and especially Japan drastically improved their global innovation and patenting activity. Is foreign technological convergence an important source of the recent evolution of the US wage and employment structure? Can it contribute shaping the dynamics of wealth-to-income ratio? To answer these questions, we set up a Schumpeterian model of endogenous technological progress with two asymmetric countries, heterogeneous workers, and endogenous skill formation. High ability people acquire education and become skilled, those with intermediate abilities work as unskilled workers in production jobs, and those at the bottom of the ability distribution work in service occupations. Service workers provide personal services allowing their employers to save working time. In equilibrium, only skilled workers buy personal services. Fiercer foreign competition triggered by technological catching up shifts production jobs abroad and forces domestic Â…rms to innovate more. Hence, the employment share of production workers shrinks, while the demand for both high skilled and service sector workers rises, thus increasing polarization. Calibrating the model to match key facts of the US economy, we Â…nd that foreign technological catching-up observed between the late 1970s and early 1990s reproduces a non-negligible part of US wage polarization and substantial part of the increase in the wealth-to-income ratio in that period. |
| Keywords: | wage polarization, heterogeneous workers, wealth-income ratio, endogenous technical change, international technology competition, personal service sector. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:not:notcfc:14/13&r=lab |
| By: | Daniel Arnold; Tobias Brändle; Laszlo Goerke |
| Abstract: | Using both household and linked employer-employee data for Germany, we assess the effects of non-union representation in the form of works councils on (1) individual sickness absence rates and (2) a subjective measure of personnel problems due to sickness absence as perceived by a firm's management. We find that the existence of a works council is positively correlated with the incidence and the annual duration of absence. We observe a more pronounced correlation in western Germany which can also be interpreted causally. Further, personnel problems due to absence are more likely to occur in plants with a works council. |
| Keywords: | Absenteeism, LIAB, personnel problems, sickness absence, SOEP, works councils |
| JEL: | J53 I18 M54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp691&r=lab |
| By: | Dewenter, Ralf (Helmut Schmidt University, Hamburg); Giessing, Leonie (DICE, University of Düsseldorf) |
| Abstract: | This paper analyses the income effect of the participation in elite sports. To quantify the average difference in the monthly net income of former elite athletes and non-athletes we estimate sample average treatment effect scores (SATT) by using covariate nearest-neighbour matching (CVM). While our treatment group consists of formerly funded top-level athletes, the control group of non-athletes is drawn from the SOEP database. Matching takes place by socio-demographic variables as well as measures of personal qualities and attitudes. On average, former athletes receive higher incomes than similar non-athletes. The income premium for former team sports and male athletes is even higher. Comparing the income of former female athletes with male non-athletes, we find that the participation in elite sports closes the gender-wage gap. Our results are robust to variations in the specification and statistically as well economically significant. |
| Keywords: | funding of elite sports; nearest-neighbour matching; job success; gender-wage gap |
| JEL: | C49 J30 L83 |
| Date: | 2014–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:vhsuwp:2014_152&r=lab |
| By: | Erling Barth; Alex Bryson; James C. Davis; Richard Freeman |
| Abstract: | This paper links data on establishments and individuals to analyze the role of establishments in the increase in inequality that has become a central topic in economic analysis and policy debate. It decomposes changes in the variance of ln earnings among individuals into the part due to changes in earnings among establishments and the part due to changes in earnings within-establishments and finds that much of the 1970s-2010s increase in earnings inequality results from increased dispersion of the earnings among the establishments where individuals work. It also shows that the divergence of establishment earnings occurred within and across industries and was associated with increased variance of revenues per worker. Our results direct attention to the fundamental role of establishment-level pay setting and economic adjustments in earnings inequality. |
| Keywords: | earnings; earnings inequality; productivity |
| JEL: | J3 J31 D3 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-33&r=lab |
| By: | Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland); Lucas van der Velde (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | This paper employs a new rich source of data on worker reallocation in transition economies and provides a decomposition of the aggregate changes into those attributable to sectoral reallocation, those attributable to transition per se and those attributable to demographics. Aghion and Blanchard (1994) provide a theoretical framework that allows to conceptualize a reallocation from an (implicitly inefficient) public sector to a (more efficient) private sector, which is extremely useful in the analyses of economic transition. However, transition processes are not isolated from global trends such as a shift from industry to services, which is more explicitly tackled in the sectoral reallocation models of Caballero and Hammour (1996, 2001). Finally, there are also demographic processes, which exhibit in labor market exits by people with outdated or no longer necessary skills and in labor market entries by people with possibly better matched competences. The aggregate changes in transition economies are a combination of these three mechanisms. We thus test the validity of Aghion and Blanchard (1994) as well as Caballero and Hammour (1996, 2001) in the context of 26 transition economies over the period 1989-2006. We find that demographics and education can accommodate a fair share of shift from public to private and from manufacturing to services - as opposed to the actual worker flows between jobs. Whether or not this results in reduced employment at the end of the transition process stems not from the wage setting mechanism (such as collective bargaining, indexation, etc.) but rather seems to be related to the policies able to keep older cohorts in employment. |
| Keywords: | optimal speed of transition, reallocation, Aghion and Balnchard, Caballero and Hammour, demographic changes, transition economies, labour market. |
| JEL: | P31 P52 J21 J23 J11 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2014-28&r=lab |
| By: | Rijkers, Bob; Arouri, Hassen; Freund, Caroline; Nucifora, Antonio |
| Abstract: | This paper examines private sector job creation in Tunisia over the period 1996-2010 using a unique database containing information on all registered private enterprises, including self-employment. In spite of stable growth of gross domestic product, overall net job creation was disappointing and firm dynamics were sluggish. The firm size distribution has remained skewed toward small firms, because of stagnation of incumbents and entrants starting small, typically as one-person firms (self-employment). Churning is limited, especially among large firms, and few firms manage to grow. Post-entry, small firms are the worst performers for job creation, even if they survive. Moreover, the association between productivity, profitability, and job creation is feeble, pointing towards weaknesses in the re-allocative process. Weak net job creation thus appears to be due to insufficient firm dynamism rather than excessive job destruction. |
| Keywords: | Labor Markets,Microfinance,Small Scale Enterprise,Labor Policies,Science Education |
| Date: | 2014–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7068&r=lab |
| By: | Hervé Boulhol |
| Abstract: | Poor labour-market outcomes remain one of Poland’s major structural weaknesses, impeding firms’ competitiveness and the nation’s potential output. Boosting employment prospects is also critical, as the country will soon be ageing at a fast pace. Despite long working hours, labour utilisation is only average due to structurally low employment rates, particularly at both ends of the age spectrum, with some marked regional differences. The female employment rate is especially low, in part due to poorly designed family and pension policies. Insufficient product-market competition and obstacles to internal mobility induce significant resource misallocation. Employment protection is not particularly stringent, but the labour market is nonetheless heavily segmented. This is likely to weigh on economic performance by limiting investment in human capital and making some specific groups bear a large share of adjustment costs. Public employment services suffer from a lack of resources and function inefficiently. Local labour offices have limited incentives to adopt best practices; the government plans to start benchmarking them. There is ample scope to tighten jobseeker obligations and reform social and tax policies to make work pay. This Working Paper relates to the 2014 OECD Economic Survey of Poland (www.oecd.org/eco/surveys/economic-survey-poland.htm). Améliorer le fonctionnement du marché du travail en Pologne Les résultats médiocres obtenus sur le front de l'emploi restent une des principales faiblesses structurelles de la Pologne, entravant la compétitivité des entreprises et la production potentielle du pays. Il est également crucial d'améliorer les perspectives d'emploi dans la mesure où la population va bientôt vieillir rapidement. Malgré le nombre élevé d'heures travaillées, le niveau d'utilisation de la main-d'oeuvre est seulement moyen en raison de la faiblesse structurelle des taux d'emploi, en particulier aux deux extrémités de l'échelle des âges, avec des différences régionales marquées. Le taux d'emploi des femmes est particulièrement bas, ce qui tient en partie aux défauts de conception des politiques familiales et du système de retraite. L'insuffisance de la concurrence sur les marchés de produits et les obstacles à la mobilité interne se traduisent par des problèmes importants d'affectation des ressources. La protection de l'emploi n'est pas particulièrement rigoureuse, mais le marché du travail n'en demeure pas moins fortement segmenté. Cela pèse probablement sur les performances de l'économie, en limitant l'investissement dans le capital humain et en faisant assumer à certains groupes une part importante des coûts d'ajustement aux chocs économiques. Les services publics de l'emploi pâtissent d'un manque de ressources et fonctionnent de manière inefficace. Les agences locales de l'emploi ne sont guère incitées à adopter les meilleures pratiques ; le gouvernement projette de commencer à les soumettre à des évaluations comparatives. Les autorités disposent d'amples marges de manoeuvre pour durcir les obligations imposées aux demandeurs d'emploi et réformer les politiques sociales et fiscales de manière à valoriser le travail. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Pologne 2014 (www.oecd.org/fr/eco/etudes/etude-econom ique-pologne.htm). |
| Keywords: | unemployment, education, employment, employment service, labour market policies, labour market, employment protection, pensions, emploi, services de l'emploi, marchés du travail, pensions, protection de l'emploi, politique du marché du travail, éducation, chômage |
| JEL: | J1 J13 J21 J24 J26 J31 J65 J8 |
| Date: | 2014–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1124-en&r=lab |
| By: | Ana Maria Bonomi Barufi |
| Abstract: | This paper aims to discuss how agglomerations economies are present in the equilibrium outcomes of the Brazilian formal labor market. There has been a wide discussion on how to correctly identify agglomeration economies given all the different types of endogeneity found in the labor market relationships, as well as taking into account all the relevant aspects that may affect the results. We make use of an individual-firm panel database from the Ministry of Labor (RAIS - Annual Report on Social Information) with information for six years (2003, 2004, 2005, 2008, 2009 and 2012). With the panel data setting, it is not only possible to account for individual unobserved characteristics constant in time, but also for sector and area effects. Moreover, by identifying skills according to the occupational position of the individuals in each firm, it is possible to control for the proximity to different skill levels (in the sector and municipality) to account for different levels of production knowledge externalities. Individual fixed effects control the potential endogeneity of the labor quality. In the case of labor quantity endogeneity, even if there is no consensus of how to best control for it, instruments based on long time lags are considered. The results show that there is a positive and significant effect of density over wages (Urban Economics literature), even when controlling for other relevant characteristics. Moreover, a measure of market potential, related to the New Economic Geography literature, does not capture this positive relationship with wages in the same way, changing sign in a specific setting. Finally, considering a quantile regression approach, there is an indication that agglomeration economies reinforce wage inequality, with a higher effect for the upper part of the wage distribution. |
| Keywords: | agglomeration economies; regional labor markets; wage equation |
| JEL: | R23 E24 R30 |
| Date: | 2014–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2014wpecon18&r=lab |
| By: | Justin van de Ven (Melbourne Institute of Applied Economic and Social Research); Sarah Voitchovsky (Melbourne Institute of Applied Economic and Social Research); Hielke Buddelmeyer (Melbourne Institute of Applied Economic and Social Research) |
| Abstract: | Although many countries are now using skilled migration to offset declining fertility and increased longevity, there is thin empirical evidence concerning the effects of alternative approaches to managing the skilled migrant intake. This study focusses on the effects on migrant labour market outcomes of Australia’s recent shift from a points-based “supply driven” model that favoured independent General Skilled Migrants, to a “hybrid model” that balances supply driven migration against Employer Sponsored “demand driven” migration. We find that the shift to a hybrid model of skilled migration resulted in substantively improved rates of employment amongst skilled migrants without an accompanying deterioration in the average distribution of occupational outcomes. |
| Keywords: | Skilled migration, Australia, migrant employment outcomes, Difference-in-Differences |
| JEL: | J15 J61 J24 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2014n21&r=lab |
| By: | Cortes, Patricia (Boston University); Pan, Jessica (National University of Singapore) |
| Abstract: | Importing foreign nurses has been used as a strategy to ease nursing shortages in the United States. The effectiveness of this policy critically depends on the long-run response of native-born nurses. We examine how the immigration of foreign-born registered nurses (RNs) affects the occupational choice and long-run employment decisions of native RNs. Using a variety of empirical strategies that exploit the geographical distribution of immigrant nurses across U.S. cities, we find evidence of large displacement effects—over a 10-year period, for every foreign nurse that migrates to a city, between one and two fewer native nurses are employed in that city. We find similar results at the state level using data on individuals taking the nursing board exam—an increase in the flow of foreign nurses significantly reduces the number of natives sitting for licensure exams in the states that are more dependent on foreign-born nurses compared to those states that are less dependent on foreign nurses. Using data on self-reported workplace satisfaction among a sample of California nurses, we find evidence suggesting that some of the displacement effects could be driven by a decline in the perceived quality of the workplace environment. |
| JEL: | J44 J61 |
| Date: | 2014–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:14-7&r=lab |
| By: | Cooper, Daniel H. (Federal Reserve Bank of Boston); Luengo-Prado, Maria Jose (Federal Reserve Bank of Boston) |
| Abstract: | The U.S. labor force participation rate has declined sharply since 2007—far faster than can be explained by demographic shifts in the population. This brief analyzes the re-entry probability for individuals who exit the labor force as well as the financial demographic, and employment characteristics of these individuals. The vast majority of individuals under 45 years of age re-enter the labor market within four years of exiting; however, the re-entry rate drops substantially for 50–54 year-olds and 55–59 year-olds. Those individuals who exit the labor market appear more marginally attached to the labor force, and they have less financial resources to sustain themselves during long periods of being out of work. There is also some evidence that intra-household labor market substitution occurs when the household head exits the labor market first/first exits the labor market. |
| JEL: | J21 |
| Date: | 2014–09–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbcq:2014_002&r=lab |