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on Labour Economics |
| By: | Nekoei, Arash (IIES, Stockholm University); Weber, Andrea (University of Mannheim) |
| Abstract: | Contrary to standard search model predictions, prior studies failed to estimate a positive effect of unemployment insurance (UI) on reemployment wages. This paper estimates a positive UI wage effect exploiting an age-based regression discontinuity in Austrian administrative data. A search model incorporating duration dependence determines the UI wage effect as the balance between two offsetting forces: UI causes agents to seek higher-wage jobs, but also reduces wages by lengthening unemployment. This implies a negative relationship between the UI unemployment duration and wage effects, which holds empirically both in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firms' quality and attenuating wage drops. |
| Keywords: | unemployment insurance, job-search, wages |
| JEL: | H5 J3 J6 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9034&r=lab |
| By: | Claudia Foroni (Norges Bank (Central Bank of Norway)); Francesco Furlanetto (Norges Bank (Central Bank of Norway)); Antoine Lepetit (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | We propose a new VAR identfication scheme that enables us to disentangle labor supply shocks from wage bargaining shocks. Identification is achieved by imposing robust signrestrictions that are derived from a New Keynesian model with endogenous labor force participation. According to our analysis on US data over the period 1985-2014, labor supply shocks and wage bargaining shocks are important drivers of output and unemployment both in the short run and in the long run. These results suggest that identification strategies used in estimated New Keynesian models to disentangle labor market shocks may be misguided. We also analyze the behavior of the labor force participation rate through the lenses of our model. We find that labor supply shocks are the main drivers of the participation rate and account for about half of its decline in the aftermath of the Great Recession. |
| Keywords: | labor supply shocks, wage mark-up shocks, identification, VAR, labor force participation |
| JEL: | C11 C32 E32 |
| Date: | 2015–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:bno:worpap:2015_07&r=lab |
| By: | Leo Kaas (Department of Economics, University of Konstanz, Germany); Philipp Kircher (Department of Economics, University of Edinburgh, United Kingdom) |
| Abstract: | We develop and analyze a labor market model in which heterogeneous firms operate under decreasing returns and compete for labor by posting long-term contracts. Firms achieve faster growth by offering higher lifetime wages, which allows them to fill vacancies with higher probability, consistent with recent empirical findings. The model also captures several other regularities about firm size, job flows and pay, and generates sluggish aggregate dynamics of labor market variables. In contrast to existing bargaining models with large firms, efficiency obtains and the model allows a tractable characterization over the business cycle |
| Keywords: | Labor market search, multi-worker firms, job creation and job destruction |
| JEL: | E24 J64 L11 |
| Date: | 2015–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:knz:dpteco:1509&r=lab |
| By: | Jousten, Alain (University of Liège); Lefèbvre, Mathieu (Université de Strasbourg) |
| Abstract: | We explore the link between health indicators and employment rates of the population aged 55 or more. Our focus lies on work capacity as a key determinant of employment. Using cohort mortality information as a proxy for overall health outcomes, we establish a substantial untapped work capacity in the population 55+. Similar results are obtained when relying on individual-level objective and subjective health and socioeconomic parameters as predictors. |
| Keywords: | employment, retirement, work capacity |
| JEL: | J14 J21 J26 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9032&r=lab |
| By: | B. Biagi; MG. Ladu |
| Abstract: | When productivity growth accelerates job destruction and job creation occurs simultaneously. However the results for the whole economy depend on which effect eventually dominates. We investigate what occurs in Italy during the time span 1977-2003, when some waves of labor market reforms have been introduced towards more flexibility. We also investigate if there are any systematic regional differences in the employment/productivity dynamics and whether these dynamics experience any sort of spatial externalities. Findings suggest that overall in Italy job destruction effect prevails and that the labor market reforms have a negative impact on employment. |
| JEL: | J01 J20 O30 R11 R23 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201505&r=lab |
| By: | Muge Adalet McGowan; Dan Andrews |
| Abstract: | This paper explores the relationship between skill mismatch and public policies using micro data for 22 OECD countries from the recent OECD Survey of Adult Skills (PIAAC). Results suggest that differences in skill mismatch across countries are related to differences in public policies. After controlling for individual and job characteristics, well-designed product and labour markets and bankruptcy laws that do not overly penalise business failure are associated with lower skill mismatch. Given the negative relationship between skill mismatch and labour productivity, reducing skill mismatch emerges as a new channel through which well-designed framework policies can boost labour productivity. Skill mismatch is also lower in countries with housing policies that do not impede residential mobility (e.g. transaction costs on buying property and stringent planning regulations). Greater flexibility in wage negotiations and higher participation in lifelong learning as well higher managerial quality are also associated with a better matching of skills to jobs.<P>Inadéquation des compétences et action des pouvoirs publics dans les pays de l'OCDE<BR>Ce Document de travail analyse la relation entre inadéquation des compétences et politiques publiques, à l’aide de micro-données recueillies pour 22 pays de l’OCDE à partir de la récente enquête PIAAC (Programme de l’OCDE pour l'évaluation internationale des compétences des adultes). Les résultats donnent à penser que les différences d’inadéquation des compétences d’un pays à l’autre sont le fruit de différences dans l’action des pouvoirs publics. Une fois isolé l’effet des caractéristiques des individus et des emplois, on observe qu’une réglementation des marchés de produits et du travail bien conçue et une législation sur la faillite pas trop pénalisante pour les défaillances d’entreprises vont de pair avec un moindre niveau d’inadéquation des compétences. Compte tenu de la corrélation négative entre l’inadéquation des compétences et la productivité de la main-d’oeuvre, la lutte contre ce phénomène s’offre comme une nouvelle voie par laquelle des politiques publiques bien pensées peuvent susciter des gains de productivité. De même, l’inadéquation des compétences est moindre dans les pays où la politique du logement n’est pas un frein à la mobilité résidentielle (par les coûts de transaction sur les acquisitions immobilières ou la sévérité des règlements d’urbanisme). Enfin, une plus grande marge de manoeuvre dans les négociations salariales, une participation plus forte à l’éducation et la formation tout au long de la vie et une meilleure qualité de la gestion d’entreprise vont également de pair avec une meilleure correspondance entre compétences et emplois. |
| Keywords: | education, human capital, labour mobility, skills mismatch, allocation of talent, framework policies, politiques-cadres, mobilité de la main-d’oeuvre, distribution des compétences, inadéquation des compétences, éducation, capital humain |
| JEL: | I20 J20 J24 J61 |
| Date: | 2015–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1210-en&r=lab |
| By: | Sónia Araújo; Petr Maleček |
| Abstract: | The Czech labour market has undergone significant changes as a consequence of economic restructuring. This paper analyses these changes, highlighting both the impact of the recent economic crisis and some of the longer-run determinants of the Czech labour market. The higher share of tertiary education graduates has increased the supply of skills. Simultaneously, the development of services and the integration into global value chains have changed the composition of employment, away from construction and agriculture, and with significant shifts within the manufacturing sector. Although at an aggregate level the labour market performs well, a deeper analysis reveals several weaknesses. In particular, long-term and youth unemployment are persistent and especially affect the lower-skilled. Skill and occupational mismatches of vocational education graduates show that the education system fails to provide the qualifications required by the labour market. At the same time, regional differences in labour market performance have grown. Raising the low employment rate of women with young children would mitigate labour force ageing and prevent skill deterioration of a highly educated labour force. Over time, the labour market has been responding faster to output shocks and output growth consistent with constant unemployment has dropped significantly. Young people are more vulnerable to fluctuations in economic output than the rest of the labour force. The volume of labour market flows increased substantially during the recent years, both for short- and long-term unemployment.<P>Le marché de travail Tchèque : documentation du changement structurel et des defis restants<BR>Le marché du travail tchèque a subi des changements importants dans un contexte de restructuration économique. Ce document analyse ces changements, et notamment l'impact de la crise économique récente ainsi que certains des déterminants à plus long terme du marché du travail tchèque. Le taux plus élevé de diplômés de l'enseignement supérieur a augmenté l'offre de compétences. Dans le même temps, le développement des services et l'intégration dans les chaînes de valeur mondiales ont changé la composition de l'emploi, avec une diminution de la part dans la construction et l'agriculture, et des changements importants dans le secteur manufacturier. Bien qu’au niveau agrégé la performance du marché du travail est bonne, une analyse plus fine révèle certaine faiblesses. En particulier, le chômage de long terme et celui des jeunes sont une caractéristique persistante, affectant surtout ceux ayant des compétences faibles. L'inadéquation des compétences et des occupations des diplômés de la formation professionnelle met en évidence une difficulté du système d'éducation à offrir les qualifications demandées par le marché du travail. En même temps, les différences régionales dans la performance du marché du travail se sont accentuées. Augmenter le faible taux d'emploi des femmes avec de jeunes enfants permettrait de contrecarrer le vieillissement de la main-d'oeuvre et de prévenir la détérioration des compétences d'une main-d'oeuvre hautement qualifiée. Au fil du temps, le marché du travail est devenu plus réactif aux chocs et la croissance de la production compatible avec un chômage constant a baissé de manière significative. Les jeunes sont plus vulnérables aux fluctuations de la production économique que le reste de la population active. Le volume des flux du marché du travail ont augmenté considérablement au cours des dernières années, tant pour le chômage de courte que de longue durée. |
| Keywords: | labour market dynamics, female labour market participation, vocational education and training, unemployment, Czech Republic, skills, labour market, youth unemployment, chômage des jeunes, chômage, enseignement et formation professionnelle, dynamique du marché du travail, participation au marché du travail des femmes, marché du travail, République tchèque, compétences |
| JEL: | J16 J21 J24 J31 J60 |
| Date: | 2015–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1213-en&r=lab |
| By: | Lilas Demmou; Martin Haluš; Gabriel Machlica; Fusako Menkyna |
| Abstract: | Regional inequality in Slovakia is among the highest in the OECD and is increasing. The main reason for regional disparity is the combination of low economic growth and job creation in the eastern and central part of the country and insufficient labour mobility to the west, in particular by low-skilled workers. As a result, jobs shortage and lack of technological capacities in the central and eastern regions persist alongside skills shortages in the Bratislava regions. Boosting convergence requires a multi-pronged approach involving innovation, labour market and educational policies. Completing the transport infrastructure network in Slovakia will be both important for removing expansion bottlenecks in the Bratislava region and reducing obstacles for job creation in the central and eastern regions.<P>Stimuler la croissance dans les régions les moins dynamiques en République Slovaque<BR>Les inégalités entre régions slovaques figurent parmi les plus fortes de la zone OCDE et s'accentuent. Ces disparités régionales s'expliquent principalement par la conjonction d'une croissance économique atone, de faibles créations d'emplois dans l'est et le centre du pays et d'une mobilité insuffisante de la main-d'oeuvre vers l'ouest, en particulier pour les travailleurs peu qualifiés. En conséquence, une pénurie d'emplois et un manque de capacités technologiques perdurent dans les régions du centre et de l'est, parallèlement à des pénuries de qualifications dans la région de Bratislava. Le renforcement de la convergence entre régions passe par une approche pluridimensionnelle, axée sur l'innovation, le marché du travail et les politiques d'éducation. Il importe de compléter le réseau d'infrastructures de transport en Slovaquie à la fois pour supprimer les goulets d'étranglement qui limitent l'expansion économique dans la région de Bratislava, et pour réduire les obstacles à la création d'emplois dans les régions du centre et de l'est. |
| Keywords: | unemployment, active labour market policies, innovation, education, Roma, transport infrastructure, EU funds, life-long learning, VET, employment services, regional inequality, infrastructures de transport, politiques actives du marché du travail, population Rome, fonds Européens, service public de l’emploi, enseignement et formation professionnelle, inégalité, formation, formation continue, chômage, éducation |
| JEL: | I2 I3 J21 J24 J31 J61 O3 R3 R4 |
| Date: | 2015–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1211-en&r=lab |
| By: | Chang-Tai Hsieh; Enrico Moretti |
| Abstract: | We study how growth of cities determines the growth of nations. Using a spatial equilibrium model and data on 220 US metropolitan areas from 1964 to 2009, we first estimate the contribution of each U.S. city to national GDP growth. We show that the contribution of a city to aggregate growth can differ significantly from what one might naively infer from the growth of the city’s GDP. Despite some of the strongest rate of local growth, New York, San Francisco and San Jose were only responsible for a small fraction of U.S. growth in this period. By contrast, almost half of aggregate US growth was driven by growth of cities in the South. We then provide a normative analysis of potential growth. We show that the dispersion of the conditional average nominal wage across US cities doubled, indicating that worker productivity is increasingly different across cities. We calculate that this increased wage dispersion lowered aggregate U.S. GDP by 13.5%. Most of the loss was likely caused by increased constraints to housing supply in high productivity cities like New York, San Francisco and San Jose. Lowering regulatory constraints in these cities to the level of the median city would expand their work force and increase U.S. GDP by 9.5%. We conclude that the aggregate gains in output and welfare from spatial reallocation of labor are likely to be substantial in the U.S., and that a major impediment to a more efficient spatial allocation of labor are housing supply constraints. These constraints limit the number of US workers who have access to the most productive of American cities. In general equilibrium, this lowers income and welfare of all US workers. |
| JEL: | E24 J01 R0 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21154&r=lab |