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on Labour Economics |
| By: | Lídia Farré; Francesco Fasani; Hannes Mueller |
| Abstract: | This article documents a strong connection between unemployment and mental disorders using data from the Spanish Health Survey. We exploit the collapse of the construction sector to identify the causal effect of job loss. Our results suggest that an increase of the unemployment rate by 10 percent due to collapse of the sector raised mental disorders in the affected population by 3 percent. We argue that the large size of this effect responds to the fact that the construction sector was at the center of the macroeconomic shock. As a result, workers exposed to the negative employment shock faced very low chances of re-entering employment. We show that this led to long unemployment spells, hopelessness and feelings of uselessness. |
| Keywords: | unemployment, mental health, great recession, Spain, construction, suicide |
| JEL: | C26 J60 I10 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:838&r=lab |
| By: | Anna Kosior; Michał Rubaszek; Kamil Wierus |
| Abstract: | The paper investigates whether differences in the popularity of fixed term contacts on the labour market can be a source of divergent dynamics of unemployment among European Monetary Union economies. For that purpose we construct a database of labor market institutions for a group of eleven euro area countries and years 1995-2013 to conduct a series of dynamic panel regressions. We find a robust and significant impact of duality on unemployment dynamics: high duality rate amplifies its responsiveness to output shocks and lowers its persistence. The heterogeneous unemployment developments, in turn, are a challenge for the conduct of common monetary policy. We conclude that improved stability at both the euro area and country level may be obtained by a coordinated shift to ‘single-contract’ that closes the disproportion between temporary and regular contracts. |
| Keywords: | Dual labour market, Monetary Union, Panel Data |
| JEL: | C23 F02 J68 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:207&r=lab |
| By: | Chie Hanaoka; Hitoshi Shigeoka; Yasutora Watanabe |
| Abstract: | We investigate whether individuals’ risk preferences change after experiencing a natural disaster— specifically, the Great East Japan Earthquake in 2011. The novelty of our study is that we use panels of nationally representative surveys, and thus, we can track the changes in risk preferences of the same individuals. We find that people who experienced greater intensity of the Earthquake become more risk tolerant. Interestingly, all the results are driven by men. Furthermore, these men gamble and drink more. Finally, we compare the estimates from cross-sectional and panel specifications, demonstrating that the cross-sectional estimate may be biased due to unobserved heterogeneity. |
| JEL: | C23 D81 J16 Q54 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21400&r=lab |
| By: | Sandra E. Black; Paul J. Devereux; Petter Lundborg; Kaveh Majlesi |
| Abstract: | Wealth is highly correlated between parents and their children; however, little is known about the extent to which these relationships are genetic or determined by environmental factors. We use administrative data on the net wealth of a large sample of Swedish adoptees merged with similar information for their biological and adoptive parents. Comparing the relationship between the wealth of adopted and biological parents and that of the adopted child, we find that, even prior to any inheritance, there is a substantial role for environment and a much smaller role for genetics. We also examine the role played by bequests and find that, when they are taken into account, the role of adoptive parental wealth becomes much stronger. Our findings suggest that wealth transmission is not primarily because children from wealthier families are inherently more talented or more able but that, even in relatively egalitarian Sweden, wealth begets wealth. |
| JEL: | G0 G11 J13 J62 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21409&r=lab |
| By: | Don Drummond; Evan Capeluck |
| Abstract: | This report presents long-term fiscal and economic projections for Canada, the provinces and the territories for the 2014-2038 period, and discusses their implications for budgetary balance at the provincial/territorial level. In particular, it examines whether economic growth and hence revenue growth (assuming no major changes in tax policy) will be sufficient to fund likely spending pressures. Economic growth is generally projected to be slower over the next 24 years than since 2000. As a result, all, or almost all, provinces and territories, depending upon the economic assumptions, will not be able to meet the test of balancing revenue growth with growth in public spending. Hence, without tax rate increases or action to curtail spending growth, there will be pressure for progressively larger deficits. |
| Keywords: | Projection, Ageing, Fiscal Sustainability, Demographics, Canada, Budget, Provinces, Revenue Growth, Taxes, Economic Growth |
| JEL: | E17 E27 E37 E47 E60 E62 E66 H20 H50 H51 H60 H61 H62 H68 H70 H71 H72 J10 O40 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:sls:resrep:1508&r=lab |