nep-lab New Economics Papers
on Labour Economics
Issue of 2015‒01‒09
25 papers chosen by
Erik Jonasson
Konjunkturinstitutet

  1. Dual Labour Markets and (Lack of) On-the-Job Training: PIAAC Evidence from Spain and Other EU Countries By Cabrales, Antonio; Dolado, Juan J.; Mora, Ricardo
  2. Labor Market Careers Before and After Incarceration By Kollo, Janos; Czafit, Bence
  3. The Effect of Female Leadership on Establishment and Employee Outcomes: Evidence from Linked Employer-Employee Data By Gagliarducci, Stefano; Paserman, M. Daniele
  4. A Theory of Wage Adjustment under Loss Aversion By Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J.
  5. Employment Adjustment and Part-time Jobs: The US and the UK in the Great Recession By Daniel Borowczyk-Martins; Etienne Lalé
  6. The differential earnings and income effects of involuntary job loss on workers with disabilities By Angelov, Nikolay; Eliason, Marcus
  7. Public-private sector wage differentials by type of contract: evidence from Spain By Raúl Ramos; Esteban Sanromá; Hipólito Simón
  8. Locus of Control and the Labor Market By Cobb-Clark, Deborah A.
  9. Immigrants' Wage Growth and Selective Out-Migration By Bijwaard, Govert; Wahba, Jackline
  10. Transmission of preferences and beliefs about female labor market participation: direct evidence on the role of mothers By Carro, Jesus; Machado, Matilde Pinto; Mora, Ricardo
  11. Intergenerational Mobility of Housework Time in the United Kingdom By Gimenez-Nadal, J. Ignacio; Molina, José Alberto; Zhu, Yu
  12. Employer accommodation and labor supply of disabled workers By Matthew J. Hill; Nicole Maestas; Kathleen J. Mullen
  13. The relationship between earnings and first birth probability among Norwegian men and women 1994-2008 By Rannveig V. Kaldager
  14. Who turns to entrepreneurship later in life? - Push and pull in Finnish rural and urban areas By Hannu Tervo
  15. Cross-border labour mobility: are East-West and East-East cross-border labour flows differ? By TIIU PAAS
  16. A more level playing field? Explaining the decline in earnings inequality in Brazil, 1995-2012 By Francisco H. G. Ferreira; Sergio P. Firpo; Julian Messina
  17. Are Public Sector Jobs Recession-Proof? Were They Ever? By Jason L. Kopelman; Harvey S. Rosen
  18. Geographical labour mobility and cross-border labour movements between neighbouring countries By Tiiu Paas; Mart Kaska
  19. Employment Cyclicality and Firm Quality By Lisa B. Kahn; Erika McEntarfer
  20. Universal Basic Income versus Unemployment Insurance By Fabre, Alice; Pallage, Stéphane; Zimmermann, Christian
  21. THE IMPACT OF THE GERMAN AUTOBAHN NET ON REGIONAL LABOR MARKET PERFORMANCE: A STUDY USING HISTORICAL INSTRUMENT VARIABLES By Joachim Möller; Marcus Zierer
  22. Competitive on-the-job search By Garibaldi, Pietro; Moen, Espen R; Sommervoll, Dag Einar
  23. Reaping the economic and social benefits of labour mobility : ASEAN 2015 By Martin, Philip; Abella, Manolo
  24. Informal employment in transition countries: empirical evidence and research challenges By H. Lehmann
  25. Before-after differences in labor market outcomes for participants in medical rehabilitation in Germany By Sebastian Fischer; Inna Petrunyk; Christian Pfeifer; Anita Wiemer

  1. By: Cabrales, Antonio (University College London); Dolado, Juan J. (European University Institute); Mora, Ricardo (Universidad Carlos III de Madrid)
    Abstract: Using the Spanish micro data from the Programme for the International Assessment of Adult Competencies (PIAAC), we first document how the excessive gap in employment protection between indefinite and temporary workers leads to large differentials in on-the-job training (OTJ) against the latter. Next, we find that that the lower specific training received by temporary workers is correlated with lower literacy and numeracy scores achieved in the PIAAC study. Finally, we provide further PIAAC cross-country evidence showing that OJT gaps are quite lower in those European labour markets where dualism is less entrenched than in those where it is more extended.
    Keywords: dual labour market, on-the-job training, cognitive skills, severance pay
    JEL: C14 C52 D24 J24
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8649&r=lab
  2. By: Kollo, Janos (Hungarian Academy of Sciences); Czafit, Bence (Budapest Institute)
    Abstract: We study the entry to formal employment and earnings of a large sample of convicts released from Hungarian prisons in 2002-2008. We identify the effect of the prison service on post-release careers by exploiting differences in the timing of incarceration, on the one hand, and estimating fixed effects models, on the other. For convicts with a single prison spell, we find initially negative effect on employment that turns positive after about one year while the impact on wages is permanently negative. A comparison with recidivists, for whom the employment effect is negative and the wage effect is weaker, suggests that these results are driven by a drop in the reservation wages of 'converted' criminals rather than the lack of discrimination. This reading is supported by further data showing that the ex-inmates, on average, make increased effort to find legitimate sources of living and support to finding jobs.
    Keywords: incarceration, unemployment, wage loss, discrimination
    JEL: K42 J64 J39
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8644&r=lab
  3. By: Gagliarducci, Stefano (University of Rome Tor Vergata); Paserman, M. Daniele (Boston University)
    Abstract: In this paper we use a large linked employer-employee data set on German establishments between 1993 and 2012 to investigate how the gender composition of the top layer of management affects a variety of establishment and worker outcomes. We use two different measures to identify the gender composition of the top layer based on direct survey data: the fraction of women among top managers, and the fraction of women among working proprietors. We document the following facts: a) There is a strong negative association between the fraction of women in the top layer of management and several establishment outcomes, among them business volume, investment, total wage bill per worker, total employment, and turnover; b) Establishments with a high fraction of women in the top layer of management are more likely to implement female-friendly policies, such as providing childcare facilities or promoting and mentoring female junior staff; c) The fraction of women in the top layer of management is also negatively associated with employment and wages, both male and female, full-time and part-time. However, all of these associations vanish when we include establishment fixed effects and establishment-specific time trends. This reveals a substantial sorting of female managers across establishments: small and less productive establishments that invest less, pay their employees lower wages, but are more female-friendly are more likely to be led by women.
    Keywords: gender, firm performance, employer-employee data
    JEL: D22 J16 J70 M50
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8647&r=lab
  4. By: Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J.
    Abstract: We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers’ perceived utility losses from wage decreases are weighted more heavily than the perceived utility gains from wage increases of equal magnitude. Wage changes are evaluated relative to an endogenous reference wage, which depends on the workers’ rational wage expectations from the recent past. By implication, employment responses are more elastic for wage decreases than for wage increases and thus firms face an upward-sloping labor supply curve that is convexly kinked at the workers’ reference price. Firms adjust wages flexibly in response to variations in labor demand. The resulting theory of wage adjustment is starkly at variance with past theories. In line with the empirical evidence, we find that (1) wages are completely rigid in response to small labor demand shocks, (2) wages are downward rigid but upward flexible for medium sized labor demand shocks, and (3) wages are relatively downward sluggish for large shocks.
    Keywords: downward wage sluggishness; loss aversion
    JEL: D03 D21 E24
    Date: 2014–12
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:10288&r=lab
  5. By: Daniel Borowczyk-Martins (Departement d'Economie de Sciences Po); Etienne Lalé (École Nationale de la Statistique et de l'Administration Économique (ENSAE))
    Abstract: We document a new fact about the cyclical behavior of aggregate hours. Using microdata for the US and the UK, we show that changes in hours per worker are driven by fluctuations in part-time employment, which are in turn explained by the cyclical behavior of transitions between full-time and part-time jobs. This reallocation occurs almost exclusively within firms and entails large changes in employees’ schedules of working hours. These patterns are consistent with the view that employers adjust the hours of their employees in response to shocks, and they partly account for the poor recovery that followed the Great Recession.
    Keywords: Employment; Hours; Part-time Work; Great Recession.
    JEL: E24 E32 J21
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4itbiqg0h38538a71odou3jmkm&r=lab
  6. By: Angelov, Nikolay (IFAU - Institute for Evaluation of Labour Market and Education Policy); Eliason, Marcus (IFAU - Institute for Evaluation of Labour Market and Education Policy)
    Abstract: People with disabilities, both in Sweden and elsewhere, are consistently found to face considerable difficulties on the labour market. In this study we have investigated the differential impact of involuntary job loss, on earnings and income, if being disabled. Our main findings are that earnings of those with and without disabilities began to diverge already several years prior to job loss because of a much larger incidence of longer periods of absence due to either sickness or rehabilitation. The seemingly permanent earnings differential following job loss seems to have been a consequence of much more of the job losers with disabilities not returning to employment but instead becoming disability retirees. Although the earnings differential experienced by the job seekers with disabilities was considerable during the post-job loss period, a majority of the difference was replaced by public social insurances.
    Keywords: Disability; job loss; unemployment
    JEL: J14 J64 J68
    Date: 2014–10–28
    URL: http://d.repec.org/n?u=RePEc:hhs:ifauwp:2014_026&r=lab
  7. By: Raúl Ramos (Universitat de Barcelona & AQR-IREA); Esteban Sanromá (Universitat de Barcelona & IEB); Hipólito Simón (Universidadde Alicante & IEI & IEB)
    Abstract: The article examines public-private sector wage differentials in Spain using microdata from the Structure of Earnings Survey (Encuesta de Estructura Salarial). When applying various decomposition techniques, we find that it is important to distinguish by gender and type of contract. Our results also highlight the presence of a positive wage premium for public sector workers that can be partially explained by their better endowment of characteristics, in particular by the characteristics of the establishment where they work. The wage premium is greater for female and fixed-term employees and falls across the wage distribution, being negative for more highly skilled workers.
    Keywords: Public-private sector wage gap, wage distribution, matched employer-employee data, decomposition methods
    JEL: C2 E3 J3 J4
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2014-32&r=lab
  8. By: Cobb-Clark, Deborah A. (University of Melbourne)
    Abstract: This paper reviews the role of locus of control in the labor market. I begin with a discussion of the conceptual origins of locus of control, including its relationship to related concepts such as self-efficacy, motivation, and self-control. The relationship between locus of control and labor market success is then summarized. In doing so, I pay careful attention to what we know about three potential mechanisms – human capital investments, hiring decisions, and optimal incentive contracts – through which locus of control might operate. Finally, the broader implications of these relationships for public policy and future research are discussed.
    Keywords: locus of control, labor market, behavioral economics
    JEL: J01 J08
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8678&r=lab
  9. By: Bijwaard, Govert (NIDI - Netherlands Interdisciplinary Demographic Institute); Wahba, Jackline (University of Southampton)
    Abstract: This paper examines immigrant wage growth taking into account selective out-migration using administrative data from the Netherlands. We also take into account the potential endogeneity of the immigrants' labor supply and their out-migration decisions on their earning profiles using a correlated competing risk model, but we also use standard estimations as done in previous literature. We distinguish between two types of migrants: labor and family migrants given their different labor market and out-migration behavior. We find that simple models lead to biased estimates of the wage growth of immigrants. Controlling for the selective out-migration and endogeneity of labor supply, we find that labor out-migrants are positively selected but family out-migrants are negatively selected. Furthermore, the findings underscore the importance of taking into account the endogeneity of labor supply and out-migration when estimating immigrants' wage growth.
    Keywords: migration dynamics, labor market transitions, competing risks, immigrant assimilation, income growth
    JEL: F22 J61 C41
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8627&r=lab
  10. By: Carro, Jesus; Machado, Matilde Pinto; Mora, Ricardo
    Abstract: Recently, economists have established that culture defined as a common set of preferences and beliefs—affects economic outcomes, including the levels of female labor force participation. Although this literature has argued that culture is transmitted from parents to children, it has also recognized the difficulty in empirically disentangling the parental transmission of preferences and/or beliefs from other confounding factors, such as technological change or investment in education. Using church registry data from the 18th and 19th centuries, our primary contribution is to interpret the effect of a mother’s labor participation status on that of her daughter as the mother-to-daughter transmission of preferences and/or beliefs that are isolated from confounding effects. Because our data are characterized by abundant non-ignorable missing information, we estimate the participation model and the missing process jointly by maximum likelihood. Our results reveal that the mother’s working status has a large and statistically significant positive effect on the daughter’s probability of working. These findings suggest that intergenerational family transmission of preferences and/or beliefs played a decisive role in the substantial increases in female labor force participation that occurred later.
    Keywords: church registry data; econometric methods for missing data; Female labor market participation; historical family data; intergenerational transmission of preferences and/or beliefs; non-ignorable missingness
    JEL: J12 J16 J22 J24
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:10218&r=lab
  11. By: Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Zhu, Yu (University of Dundee)
    Abstract: This paper analyzes the relationship between parents' time devoted to housework and the time devoted to housework by their children. Using data from the Multinational Time Use Study for the UK, we find positive intergenerational correlations in housework for both parents, indicating that the more time parents devote to housework, the more time their children will devote to housework. However, when endogeneity of the uses of time are considered using the British Household Panel Survey, we find that only fathers' housework time appears to have a statistically significant effect. The IV estimates fully support the FE estimates and suggest that father's housework induced by his partner's non-traditional gender role attitudes towards domestic division of labour and her actual labour supply in the previous wave, has a large and significant effect on children's housework time. Our results contribute to the field of intergenerational mobility of behaviors.
    Keywords: housework, household, intergenerational transfers, Multinational Time Use Study, British Household Panel Survey
    JEL: J16 J22
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8674&r=lab
  12. By: Matthew J. Hill; Nicole Maestas; Kathleen J. Mullen
    Abstract: We use longitudinal data from the Health and Retirement Study to examine what factors influence employer accommodation of newly disabled workers and how effective such accommodations are in retaining workers and discouraging disability insurance applications. We find that only a quarter of newly disabled older workers are accommodated by their employers in some way following onset of a disability. Importantly, we find that few employer characteristics explain which workers are accommodated; rather, employee characteristics, particularly the presence of certain personality traits correlated with assertiveness and open communication, are highly predictive of accommodation. This suggests that policies targeting employer incentives may not be particularly effective at increasing accommodation rates since employers may not even be aware of their employees’ need for accommodation. We also find that if employer accommodation rates can be increased, disabled workers would be significantly more likely to delay labor force exit, at least for two years. However, we do not find significant effects on the disability insurance claiming margin.
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:upf:upfgen:1450&r=lab
  13. By: Rannveig V. Kaldager (Statistics Norway)
    Abstract: I analyze whether the correlation between yearly earnings and the first birth probabilities changed in the period 1994-2008 in Norway, applying discrete-time hazard regressions to highly accurate data from population registers. The results show that the correlation between earnings and fertility has become more positive over time for women but is virtually unchanged for men – rendering the correlation fairly similar across sex at the end of the period. Though the (potential) opportunity cost of fathering increases, there is no evidence of a weaker correlation between earnings and first birth probability for men. I suggest that decreasing opportunity costs of motherhood as well as strategic timing of fertility to reduce wage penalties of motherhood are both plausible explanations of the increasingly positive correlation among women.
    Keywords: Fertility; First births; Earnings
    JEL: J11 J13 J16
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:ssb:dispap:787&r=lab
  14. By: Hannu Tervo
    Abstract: Age is an important factor in entrepreneurship. The paths into entrepreneurship at a later age may be varied. Self-employment in later life may be either a form of partial retirement or a career option. Older individuals may also be pushed into self-employment. The focus of this paper is on the career choices of older individuals and their background motivations in Finland. The purpose is to analyse the factors and motives in terms of the push and pull dichotomy that lead individuals to enter self-employment at older ages in different types of labour markets in Finland, viz., rural and urban areas. Although some studies have focused on transitions to self-employment among older workers, questions about the motives and particularly about the background and circumstances of these people, including the regional environment, still need clarification. A large longitudinal data set is utilised to examine the transitions of individuals aged 55-74 to self-employment. The results suggest that due to a lower level of demand and lower educational capital, self-employment is less tempting in rural than in urban areas. As a result, transitions to self-employment at older ages are less frequent in rural areas than in urban areas, although rural areas have strong traditions of entrepreneurship. Seniors with prior experience are more likely to start a business in urban areas: habitual entrepreneurship is more frequent in urban areas, at least in later life. Older workers without prior experience in self-employment, however, start businesses in rural areas as likely as in urban areas. The results also show that most enter self-employment from paid employment, though a small number do enter from non-employment. The results suggest that a career option is often linked with transitions from wage work, whereas those transitioning from non-employment seek a bridge to full retirement. No sharp division between these two options can be made, however. The results suggest that those who are recognised to possess pull motives are characterised to be more likely male and/or highly educated, whereas those who are recognised to possess push motives are more likely female, unmarried and/or less educated with an orientation of business education. An interesting finding is that both necessity- and opportunity-driven self-employed have prior self-employment experience. Independent of whether entrepreneurship is necessity- or opportunity-driven, it is most likely habitual.
    Keywords: self-employment; third age; rural and urban regions; habitual and novice entrepreneurship; necessity vs. opportunity JEL-codes:
    JEL: J14 J24 J26 M13 R23
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p236&r=lab
  15. By: TIIU PAAS
    Abstract: The aim of this paper is to outline differences in the socio-demographic and employment characteristics of Estonian people who have worked in a neighbouring country ? Finland, Sweden, Latvia or Russia. The empirical part of this paper relies on data from CV Keskus ? an online employment portal bringing together jobseekers and vacant job posts. The results of our analysis show that different destination regions ? the wealthier countries of Finland and Sweden (referred to as East-West mobility) and Latvia and Russia (referred to as East-East mobility) have attracted workers with different personal and job-related characteristics. Ethnicity and higher education are important determinants in explaining differences between East-West and East-East labour flows. Non-Estonians and people with a higher education have been less likely to work in Finland or Sweden (East-West mobility).
    Keywords: international labour mobility; cross-border labour flows; East-West and East-East labour migration; Estonia
    JEL: J61 O57 R P52
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa14p50&r=lab
  16. By: Francisco H. G. Ferreira; Sergio P. Firpo; Julian Messina
    Abstract: The Gini coefficient of labour earnings in Brazil fell by 20% between 1995 and 2012, from 0.5 to 0.4. The decline was even larger by other measures, with the 90-10 percentile ratio falling by almost 40%. Although the conventional explanation of falling returns to education did play a role, a RIF regression-based decomposition analysis suggests that substantial reductions in the gender, race and spatial wage gaps, conditional on human capital and institutional variables, explain the lion’s share of the decline in earnings inequality. Lower male, white, urban and Southeast wage premia, alongside lower formal-informal wage gaps, account for 6.3 of the ten Gini points difference between 1995 and 2012. Although rising minimum wages contributed to the decline during 2004-2012, they had no such effect during 1995-2002.
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:bwp:bwppap:iriba_wp12&r=lab
  17. By: Jason L. Kopelman; Harvey S. Rosen
    Abstract: We use data from the Displaced Worker Survey supplements of the Current Population Survey from 1984 to 2012 to investigate the differences in job loss rates between workers in the public and private sectors. Our focus is on the extent to which recessions affect the differential between job loss rates in the two sectors. Our main findings include the following: First, taking into account differences in characteristics among workers does not eliminate sectoral differences in the likelihood of losing one’s job. After accounting for worker characteristics, during both recessionary and non-recessionary periods, the probability of job loss is higher for private sector workers than for public sector workers at all levels of government. Second, the probability of displacement for private sector workers increased during both the Great Recession and earlier recessions during our sample period. Third, it is less straightforward to characterize the experience of public sector workers during recessions. Job loss rates sometimes increased and sometimes decreased, depending on whether the employer was the federal, state, or local government. The impact of the Great Recession on displacement rates for public sector employees was somewhat different from that in previous recessions. Fourth, the advantage of public sector employment in terms of job loss rates generally increased during recessions for all groups of public sector workers. Thus, the answer to the question posed in the title is that public sector jobs, while not generally recession-proof, do offer more security than private sector jobs, and the advantage widens during recessions. These patterns are present across genders, races, and educational groups.
    JEL: H11 J45
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:20692&r=lab
  18. By: Tiiu Paas (University of Tartu); Mart Kaska (University of Tartu, Estonia)
    Abstract: The paper focuses on examining cross-border labour mobility between the neighbouring countries looking for the answer to the question whether cross-border labour mobility can pursue win-win expectations of increasing international labour movement after the EU eastward enlargement. The aim of the paper is to outline differences in the socio-demographic and employment characteristics of Estonian people who have worked in a neighbouring country – Finland and Sweden (East-West mobility) and Latvia or Russia (East-East mobility). The results of the study show that the possible consequences of cross-border labour mobility are twofold. Cross-border labour mobility can support economic development of both source and target country but also generate some threats of brain waste taking into account the sharp increase of lower-skilled jobs of people who are working in economically well-developed neighbouring countries.
    Keywords: geographic labour mobility, neighbouring countries, cross-country labour flows, East-West and East-East mobility, Estonia
    JEL: J61 O57 R23 P52
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:cst:wpaper:2&r=lab
  19. By: Lisa B. Kahn; Erika McEntarfer
    Abstract: Who fares worse in an economic downturn, low- or high-paying firms? Different answers to this question imply very different consequences for the costs of recessions. Using U.S. employer-employee data, we find that employment growth at low-paying firms is less cyclically sensitive. High-paying firms grow more quickly in booms and shrink more quickly in busts. We show that while during recessions separations fall in both high-paying and low-paying firms, the decline is stronger among low-paying firms. This is particularly true for separations that are likely voluntary. Our findings thus suggest that downturns hinder upward progression of workers toward higher paying firms - the job ladder partially collapses. Workers at the lowest paying firms are 20% less likely to advance in firm quality (as measured by average pay in a firm) in a bust compared to a boom. Furthermore, workers that join firms in busts compared to booms will on average advance only half as far up the job ladder within the first year, due to both an increased likelihood of matching to a lower paying firm and a reduced probability of moving up once matched. Thus our findings can account for some of the lasting negative impacts on workers forced to search for a job in a downturn, such as displaced workers and recent college graduates.
    JEL: E24 E32 J23 J3 J63
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:20698&r=lab
  20. By: Fabre, Alice (Aix-Marseille University); Pallage, Stéphane (University of Québec at Montréal); Zimmermann, Christian (Federal Reserve Bank of St. Louis)
    Abstract: In this paper we compare the welfare effects of unemployment insurance (UI) with a universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should do a better job at protecting the unemployed, it suffers from moral hazard and substantial monitoring costs, which may threaten its usefulness. The universal basic income, which is simpler to manage and immune to moral hazard, may represent an interesting alternative in this context. We work within a dynamic equilibrium model with savings calibrated to the United States for 1990 and 2011, and provide results that show that UI beats UBI for insurance purposes because it is better targeted towards those in need.
    Keywords: universal basic income, idiosyncratic shocks, unemployment insurance, heterogeneous agents, moral hazard
    JEL: E24 D7 J65
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8667&r=lab
  21. By: Joachim Möller (IAB, IZA, University of Regensburg); Marcus Zierer (University of Regensburg)
    JEL: L91 N73 N74 R11 R40 R49
    Date: 2014–11
    URL: http://d.repec.org/n?u=RePEc:lue:wpaper:329&r=lab
  22. By: Garibaldi, Pietro; Moen, Espen R; Sommervoll, Dag Einar
    Abstract: The paper proposes a model of on-the-job search and industry dynamics in which search is directed. Firms permanently differ in productivity levels, their production function features constant returns to scale, and search costs are convex in search intensity. Wages are determined in a competitive manner, as firms advertise wage contracts (expected discounted incomes) so as to balance wage costs and search costs (queue length). An important assumption is that a firm is able to sort out its coordination problems with their employees in such a way that the on-the-job search behavior of workers maximizes the match surplus. Our model has several novel features. First, it is close in spirit to the competitive model, with a tractable and unique equilibrium, and is therefore useful for empirical testing. Second, the resulting equilibrium gives rise to an efficient allocation of resources. Third, the equilibrium is characterized by a job ladder, where unemployed workers apply to low productivity firms offering low wages, and then gradually move on to more productive, higher-paying firms. Finally, the equilibrium offers different implications for the dynamics of job-to-job transitions than existing models of random search.
    Keywords: competitive search equilibrium; directed search; efficiency; firm dynamics
    JEL: C62 J60
    Date: 2014–09
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:10175&r=lab
  23. By: Martin, Philip; Abella, Manolo
    Abstract: The ASEAN Economic Community (AEC) is moving towards closer economic integration among its Member States, including the free mobility of professionals and highly skilled workers. The freer flow of goods and capital will place path dependence, which encourages firms that already hire migrant workers to expand, in competition with wage convergence, which will reduce incentives for international labour migration. Most current AEC migrants are low skilled and most new migrants are likely to be low skilled. Governments need to acknowledge this reality and develop policies to liberalize and regularize the cross-border movements of labour. They cause mutual recognition agreements to promote the movement of professionals, and regulate the recruitment and employment of migrant workers, to ensure that migrant and local workers are treated equally. Demographic and economic realities suggest international labour migration within the AEC will increase making the implementation of the 2007 ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers imperative, to ensure that labour migration promotes cooperation rather than conflict between AEC Member States.
    Keywords: labour market, labour mobility, migrant worker, workers rights, social security, interindustry shift, trade agreement, economic implication, economic integration, regional cooperation, ASEAN countries, marché du travail, mobilité de la main-d'oeuvre, travailleur migrant, droits des travailleurs, sécurité sociale, mutation interindustrielle, accord commercial, conséquences économiques, intégration économique, coopération régionale, pays de l'ANASE, mercado de trabajo, movilidad de la mano de obra, trabajador migrante, derechos de los trabajadores, seguridad social, desplazamiento industrial, convenio comercial, consecuencias económicas, integración económica, cooperación regional, países del ASEAN
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:ilo:ilowps:486521&r=lab
  24. By: H. Lehmann
    Abstract: Even though informal employment is wide-spread in transition economies the literature on this phenomenon in the region is rather scarce. For policy makers it is important to know the incidence and the determinants of informal employment. In the first part of the paper we demonstrate that its incidence and to a lesser degree its determinants depend on the definition used. We then discuss studies that attempt to test for labor market segmentation in transition economies along the formal-informal divide. The presented results are inconclusive and we come to the conclusion that more work needs to be done before we can make definitive statements about whether labor markets are integrated or segmented in transition economies. Last but not least we introduce a new research area that links risk preferences and selection into labor market states. We show that if individuals have a choice, relatively risk loving workers have an increased likelihood to choose informal employment and self-employment.
    JEL: D03 J43 P23
    Date: 2014–12
    URL: http://d.repec.org/n?u=RePEc:bol:bodewp:wp982&r=lab
  25. By: Sebastian Fischer (Leuphana University Lueneburg, Germany); Inna Petrunyk (Leuphana University Lueneburg, Germany); Christian Pfeifer (Leuphana University Lueneburg, Germany); Anita Wiemer (Leuphana University Lueneburg, Germany)
    Abstract: The authors address the issue of effectiveness of medical rehabilitation in terms of labor market outcomes by analyzing a large representative administrative panel data set for Germany. The research design focuses on socio-demographic group differences in before-after differences in days with unemployment benefits, days in employment, and labor income of participants in medical rehabilitation. The mean before-after differences indicate that medical rehabilitation is rather ineffective with respect to labor market outcomes, because the number of days with unemployment benefits is larger and the number of working days and labor income are smaller after the rehabilitation than before. The differences in the before-after differences are however large between socio-demographic groups. For example, older participants perform significantly worse and better educated participants have significant better labor market outcomes after the rehabilitation than before, whereas gender differences are small.
    Keywords: medical rehabilitation, effectiveness, labor market performance
    JEL: I1 J2
    Date: 2014–12
    URL: http://d.repec.org/n?u=RePEc:lue:wpaper:318&r=lab

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