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on Labour Economics |
| By: | Benjamin Bridgman (Bureau of Economic Analysis) |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:bea:wpaper:0114&r=lab |
| By: | Anja Deelen; Marloes de Graaf-Zijl; Wiljan van den Berge |
| Abstract: | This paper studies the effect of firm closures for prime-age and older workers. Administrative data on the Dutch labour force are used to follow a sample of Dutch workers who lost their jobs due to firm closures in the period 2000 - 2009. Applying difference-in-difference techniques and using a control group created by exact matching, we find that involuntary job loss has a severe impact on older workers' labour market prospects. Finding a new job is relatively difficult, and wage cuts are more substantial once they find a new job. The differences between prime-age and older workers are partly mediated by tenure and industry effects. Not only do older workers on average have longer job tenures than prime-age workers, older workers with longer job tenures experience more negative effects of displacement as well. For prime-age workers tenure in the job before displacement makes less of a difference for their outcomes after displacement. Likewise, displaced older workers are more sensitive to the situation in the local labour market in the industry from which they are displaced. Moreover, older workers experience stronger negative effects of changing industries after displacement on their post-displacement wages. |
| JEL: | J14 J63 J65 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:285&r=lab |
| By: | Gabriele Mazzolini (Università Cattolica del Sacro Cuore; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore) |
| Abstract: | This paper investigates the economic consequences of workplace accidents in the British labour market. For the empirical analysis, I use data on employment and earnings from the British Household Panel Survey and exploit fixed effects estimators to control for time-invariant unobserved workers’ characteristics. I provide evidence that accidents at work negatively affect both job opportunities and workers’ earnings. First, employment probabilities following a state of injury are significantly lower. This effect persists over time and is stronger in those regions where the macroeconomic conditions are worse. Second, a serious workplace accident also results in significant delayed wage penalties, which increase with the accident’s seriousness. The effect is lower in the public sector and unionized firms, where job and earnings protection is higher and physically demanding working conditions are not widespread, or if the worker moves to a new job which suits his/her post-injury abilities better. |
| Keywords: | accident at work, employment, earnings losses, BHPS |
| JEL: | J28 J71 J17 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie1:def15&r=lab |
| By: | Hotchkiss, Julie L. (Federal Reserve Bank of Atlanta) |
| Abstract: | As a measure of labor market strength, the raw employment-to-population ratio (EPOP) confounds employment outcomes with labor supply behavior. Movement in the EPOP depends on the relative movements of the employment rate (one minus the unemployment rate) and the labor force participation rate. This paper proposes an adjustment to the calculation of the EPOP using individual microdata to account for both individual characteristics and the probability of labor force participation, which can used to assess the strength of the labor market. |
| Keywords: | EPOP; employment-to-population ratio; labor force participation; unemployment rate; employment rate; structural versus cyclical |
| JEL: | J11 J21 J64 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:2014-08&r=lab |
| By: | Elisabet Motellón (Faculty of Economics, University of Barcelona); Enrique López-Bazo (Faculty of Economics, University of Barcelona) |
| Keywords: | Immigration, Job Loss, Crisis, Labour Market Segregation, Spain JEL classification: I24, J24, J61 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201427&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 firms 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 find 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. JEL Classification: F16; J31; O33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:14/10&r=lab |
| By: | Seeun Jung (Université de Cergy-Pontoise, THEMA) |
| Abstract: | This paper investigates a new way to estimate the gender wage gap with the introduction of individual risk attitudes using representative Korean data. We es- timate the wage gap with correction for the selection bias, which latter results in the overestimation of this wage gap. Female workers are more risk averse. They hence prefer working in the public sector, where wages are generally lower than in the private sector. It goes on to explain the reduced gender wage gap by develop- ing an appropriate sample-selection model, with wage decompositions corrected for selectivity. Self-selection based on risk attitudes therefore explains, in part, what is popularly perceived as gender discrimination. |
| Keywords: | Occupational Choice; Gender Wage Gap; Risk Preference; Selection Bias |
| JEL: | J24 J31 D81 C52 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2014-25&r=lab |
| By: | Cory Koedel (Department of Economics, University of Missouri-Columbia); Rajeev Darolia; Paco Martorell; Katie Wilson; Francisco Perez-Arce |
| Abstract: | We sent nearly 9,000 fictitious resumes to advertisements for job openings in seven major cities in the United States across six occupational categories. We randomly assigned names to the resumes that convey race and gender but for which a strong socioeconomic connotation is not implicated. We find little evidence of systematic employer preferences for applicants from particular race and gender groups |
| Keywords: | Employment, Discrimination, Race/Ethnicity, Gender, Field Experiment |
| JEL: | J71 C93 |
| Date: | 2014–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:1419&r=lab |
| By: | Sandra Rodríguez (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | Based on the “task approach” to labor markets this research seeks to analyze the contribution of technology content of tasks as another explanation factor to the distribution of men wages in Uruguay during the nineties and the first decade of the 2000s. We use unconditional quantile regressions (UQR) and a decomposition method based on the recentered influence function (RIF) regression approach. Our estimates suggest that technological task content of occupations contributes to explain changes in the distribution of men wages in Uruguay, but these effects are better capture by the information content of task rather than the automation content, therefore we cannot confirm Autor, Levy and Murnane’s routinization hypothesis. |
| Keywords: | wage inequality, RIF regressions, technology, occupational tasks |
| JEL: | J3 J5 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-15-14&r=lab |
| By: | Nyström, Kristina (The Ratio Institute and The Royal Institute of Technology); Viklund Ros, Ingrid (The Royal Institute of Technology) |
| Abstract: | Every year there is a substantial turbulence in an economy with respect to new firm formation and business closures. Each year, according to Tillväxtanalys (2009), about 100 000 Swedish employees lose their job due to a business closure. However, the share of firm closures vary substantially across Swedish regions (Nyström, 2007; 2009) and consequently the number of workers affected by the firm closure can be expected to vary across regions. In this paper we explore the patterns of regional displacements and to what extent there are differences in the regional capacity to re-employ displaced workers within one year. We use individual-firm level data to identify all establishment closures and re-employments in Sweden during the period 2001-2009. On average the share of displaced workers is 1.22 percent, but the regional variation is substantial. We find that the regional share of re-employments within the region where the displaced worker was employed varies between 15 and 85 percent. We do not find any correlation between the share of displacements and the capacity to absorb displaced workers. |
| Keywords: | Displacements; exit. Labor mobility; regional development |
| JEL: | J00 R10 |
| Date: | 2014–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0235&r=lab |
| By: | Luisa Gagliardi |
| Abstract: | This paper investigates the impact of technological change on local labour market outcomes in Britain. Using a newly assembled panel database for the period 2000-2007 and a directly observed measure of technological change based on patent records, the analysis suggests that employment levels are relatively lower in places that are more exposed to technological shocks depending on their existing industrial specialization. Results also suggest that the magnitude of the impact varies across locations and typologies of workers. The negative impact on employment is particularly evident in areas characterized by weaker agglomeration economies and specialization in mature industries and for intermediate skilled individuals employed in "routinary" activities |
| Keywords: | Local labour market, employment, technological change, skills |
| JEL: | R12 R23 R21 O33 J24 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0165&r=lab |
| By: | Vikman, Johan (Uppsala Center for Labor Studies) |
| Abstract: | This paper considers treatment evaluation in a discrete time setting in which treatment could start at any point in time. A typical application is an active labor market policy program which could start after any elapsed unemployment duration. It is shown that various average effects on survival time are identified under unconfoundedness and no-anticipation and inverse probability weighting (IPW) estimators are provided for these effects. The estimators are applied to a Swedish work practice program. The IPW estimator is compared with related estimators. One conclusion is that the matching estimator proposed by Fredriksson and Johansson (2008)1 overlooks a selective censoring problem. |
| Keywords: | Treatment effects; dynamic treatment assignment; program evaluation; work practice |
| JEL: | C14 C40 |
| Date: | 2014–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uulswp:2014_008&r=lab |
| By: | Naoko Hara (Bank of Japan); Munechika Katayama (Kyoto University); Ryo Kato (Bank of Japan) |
| Abstract: | Empirical studies report a marked dispersion in skill-premium changes across economies over the past few decades. Structural models in early studies successfully replicate the increases in skill premiums in many economies, while some other cases with a decline in the skill premium are yet to be explained. To this end, we develop a two-sector (i.e., manufacturing and non-manufacturing) general equilibrium model with skilled and unskilled labor, in which degrees of capital-skill complementarity differ across sectors. Based on the estimated structural parameters, we show that a decline in capital-skill complementarity in the non-manufacturing sector can provide a consistent explanation for the following aspects of the Japanese data at both the aggregate and industry levels: (i) a decline in the skill premium, (ii) widening of the sectoral wage gap due to a rise in manufacturing wages and decline in non-manufacturing wages, and (iii) an increase in the unskilled labor share in the non-manufacturing sector. We interpret that this change reflects compositional effects and uneven technology adoption of firms within non-manufacturing. |
| Keywords: | Capital-skill Complementarity; Skill Premium; Two-sector DSGE Model; Bayesian Estimation |
| JEL: | E22 E24 J31 |
| Date: | 2014–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp14e09&r=lab |
| By: | MORIKAWA Masayuki |
| Abstract: | This paper compares the wage structure between the public and private sectors in Japan by using a large microdata set covering public and private sector employees. Rather than comparing overall wage levels, we examine the differences in relative wages by gender, age, education, and region. According to the estimation of wage functions, wage gaps by gender and educational attainment are smaller in the public sector than in private companies. The public sector's age-wage profile is steeper than that of the private sector. Public sector wages are more compressed; the wages are relatively higher at the lower end of the wage distribution and relatively lower at the higher end. The regional wage differential is smaller in the public sector. As a result, the wage level of public sector workers is relatively higher in rural regions and relatively lower in large metropolitan regions. To ensure the efficient provision of public services, it is inappropriate to compare only average wages. We should carefully observe the differences in wage structure by individual characteristics and by region. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14060&r=lab |
| By: | S. Mahendra Dev (Indira Gandhi Institute of Development Research; Institute of Economic Growth) |
| Abstract: | Several countries in the Asia-Pacific region are experiencing demographic changes. Over 60 per cent of the world's youth live in Asia and the Pacific, which translates into more than 750 million young women and men aged 15 to 24 years. They represent a key asset for the countries of this region. Young people are a major human resource for development, key agents for social change and driving force for economic development and technological innovation. But harnessing these resources is a major challenge. The youth challenge is considered as the most critical of the 21st century's economic development challenge. In this context, this paper examines the labour market characteristics for adults and the entire population. Then it analyses challenges and opportunities in labour market for youth. Next, the paper discusses the existing and needed policies for taking care of the challenges in overall and youth labour markets. It also provides conclusions and recommendations. We also highlight the gender issues in the paper. The recommendations include direct policies such as active lbour market policies, social protection programmes, fair migration and indirect policies like pro employment macro policies. There are significant links between creating employment opportunities for the youth and enhancement of human development. Employment and livelihoods particularly productive youth employment has impact on most of the indicators of Sustainable Development Goals (SDGs). They can reduce poverty, under nutrition, improve the education, health and gender equality. |
| Keywords: | Youth employment, unemployment, active labour market policies, social protection, maternity benefits, employment injury, disability benefits, migration, skill development, pro employment macro policies |
| JEL: | J21 J23 J24 J28 J30 J61 J83 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2014-041&r=lab |
| By: | Martin Wittenberg (DataFirst, University of Cape Town) |
| Abstract: | We analyse the long-term trends in wages in South Africa, using the data from the October Household Surveys, Labour Force Surveys and Quarterly Labour Force Surveys. We show that outliers and missing data need to be taken into consideration when working with these data. Our results show that overall mean real earnings among employees has risen over this period. Median real earnings, by contrast, have lagged. We show that the top end of the earnings distribution has moved away from the median, while there seems to have been a relative compression of the distribution right at the bottom. |
| Keywords: | South Africa, Inequality, Earnings, Data Quality, Multiple Imputation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:135&r=lab |
| By: | Michael Lim |
| Abstract: | Empirical data suggests that the relative price of goods and services may play a role in individual labor supply decisions. Data shows that individuals spend a significant amount of their time at home engaged in activities such as child care, education, and elderly care, among others, which are substitutible with relatively expensive market services. From 2000 and onward, the relative price of services and the labor participation rate have shown a negative relationship. In this paper, the role of relative prices in a frictional, two sector labor market is examined. Adapting the labor search model presented in Garibaldi and Wasmer (2005) to incorporate relative price effects, we show that the introduction of relative prices has both partial and general equilibrium effects on entry and exit margins, which tend to reduce labor market participation. The model is then calibrated and taken to US data from the 2000s (to be done). |
| URL: | http://d.repec.org/n?u=RePEc:cmu:gsiawp:222365889&r=lab |
| By: | Kunze, Astrid (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | This study investigates whether and when during the life cycle women fall behind in terms of career progression because of children. We use 1987-1997 Norwegian panel data that contain information on individuals’ position in their career hierarchy as well as a direct measure of their promotions. We measure overall promotions as increases in rank within the same establishment as well as in combination with an establishment change. Women with children are 1.6 percentage points less likely promoted than women without children; this is what we refer to as the family gap in climbing the career. We find that mothers tend to enter on lower ranks than non-mothers. 37 percent of the gap can be explained by rank fixed effects and human capital characteristics. A large part remains unexplained. Graphical analyses show that part of the difference already evolves during the early career. Part of this seems related to the relatively low starting ranks. |
| Keywords: | Promotion; women; family gap; human capital; organizational hierarchy; decomposition. |
| JEL: | J10 J60 M50 |
| Date: | 2014–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2014_029&r=lab |
| By: | Mathieu Bunel; Yannick L'Horty; Pascale Petit |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tep:teppwp:wp14-11&r=lab |
| By: | Stephan Brunow (IAB); Uwe Blien (IAB) |
| Abstract: | Urbanization and localization effects are known to boost the regional economy and its growth potential. The emergence of these effects is due to localized knowledge flows, the closeness to markets, but also due to the diversity of services and industries. All these effects have the potential to increase the productivity (and profitability) of firms. Whereas many studies have been conducted at the industry or the regional level, this paper adds to the existing literature by starting at the level of establishments and taking the interaction with the surrounding regions into account. This is possible by exploiting an exceptionally large establishment panel study and the employment statistics for Germany. The empirical analyses are carried out in two steps regressions in order to separate the characteristics of establishments from regional influences. |
| Keywords: | Region, labor productivity, agglomeration effects, MAR-, Jacobs-effects |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2014006&r=lab |
| By: | Warda, Peter (Jönköping International Business School (JIBS), and Centre of Excellence for Science and Innovation Studies (CESIS), Sweden.) |
| Abstract: | My purpose in this paper is to analyze how offshoring of intermediate goods affects different occupational groups in Swedish manufacturing firms using data for the period 2001-2008. Advances in ICT, along with improved infrastructure and lower cost of transportation have boosted the contracting and networking of firms in the global markets. A hot trend among firms is to scan the global economy for cost advantages in their domestic production of final goods. Such cost advantages can come in the form of offshoring, where imported inputs either substitute or complement specific job tasks in the domestic production. Occupations are distinguished by job tasks as cognitive (knowledge handling), management (information handling), social (service handling), and motoric (goods handling). The empirical results are in line with the stated hypotheses and show that more high-technology offshoring increases the cost share of employees with cognitive occupations. More low-technology offshoring positively influences the cost share of employees with motoric occupations. |
| Keywords: | Offshoring; occupations; job tasks; Sweden; manufacturing |
| JEL: | F14 J21 J23 |
| Date: | 2014–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0375&r=lab |