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on Labour Economics |
| By: | Liu, Kai (Norwegian School of Economics) |
| Abstract: | This paper shows that job mobility is a valuable channel which employed workers use to mitigate bad labor market shocks. I construct and estimate a model of wage dynamics jointly with a dynamic model of job mobility. The key feature of the model is the specification of wage shocks at the worker- firm match level, for workers can respond to these shocks by changing jobs. The model is estimated using a sample of young male workers from the 1996 panel of Survey of Income and Program Participation. The first result is that the variance of match-level shocks is large, and the consequent value of job mobility is substantial. The second result is that true wage risk is almost three times as large as the wage variance observed after job mobility, which is what other papers in the literature have called wage risk. This suggests a very different picture of the risks facing employed workers in the labor market. |
| Keywords: | job mobility, wage dynamics, wage risk, employment |
| JEL: | D91 J31 J62 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9256&r=lab |
| By: | Raposo, Pedro (Universidade Catolica Portuguesa, Lisbon); Portugal, Pedro (Banco de Portugal); Carneiro, Anabela (University of Porto) |
| Abstract: | Using an unusually rich matched employer-employee-job title data set for Portugal, this paper evaluates the sources of wage losses of workers displaced due to firm closure based on the comparison of workers' wages differentials before and after displacement. Potential wage losses of displaced workers can be related to firm, job title, and match heterogeneity in the pre- and post-displacement jobs. In this vein, we estimate a three-way high-dimensional fixed effects regression model that enables us to decompose the sources of the wage losses into the contribution of firm, job title, and match fixed effects. The worker-firm match plays a very sizable role. We found that the allocation of workers into poorer matches accounts for 38 percent of the total average wage loss. Sorting among firms accounts for 36 percent. Job downgrading also plays a significant role in explaining the wage loss of displaced workers, accounting for the remaining 26 percent. |
| Keywords: | match effects, job title, high-dimensional fixed effects, displaced, wage losses |
| JEL: | J31 J63 J65 E24 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9220&r=lab |
| By: | Farré, Lídia (University of Barcelona); Fasani, Francesco (Queen Mary, University of London); Mueller, Hannes (IAE Barcelona (CSIC)) |
| 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 centre 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: | mental health, great recession, unemployment, Spain |
| JEL: | I10 J60 C26 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9235&r=lab |
| By: | Manuel Flores (OECD, France); Pilar Garcia-Gomez (Erasmus University Rotterdam, the Netherlands); Adriaan Kalwij (Utrecht University, the Netherlands) |
| Abstract: | We investigate how early life circumstances—childhood health and socioeconomic status (SES)—are associated with labor market outcomes over an individual’s entire life cycle. A life cycle approach provides insights not only into which labor market outcomes are associated with adverse childhood events but also into whether these associations show up early or only later in working life, and whether they vanish or persist over the life cycle. The analysis is conducted using the Survey of Health, Aging and Retirement in Europe, which contains retrospective information on early life circumstances and full work histories for over 20,000 individuals in thirteen European countries. We find that the associations between early life circumstances and (accumulated) labor market outcomes vary over an individual’s life cycle. For men and women, the effect of childhood SES on lifetime earnings accumulates over the life cycle through the associations with both working years and annual earnings. Moreover, for men this association with lifetime earnings reverses sign from negative to positive over their working life. We also find a smaller, positive long-term association between childhood health and lifetime earnings operating mainly through annual earnings and only to a lesser extent through working years, and which is not present at the beginning of the working life for women. Most of these life cycle profiles differ between European country-groups. Finally, for women we find a so-called buffering effect, i.e. that a higher parental SES reduces the negative impact of poor health during childhood on accumulated earnings over the life cycle. |
| Keywords: | Early life circumstances; lifetime earnings; life cycle; SHARE |
| JEL: | D10 I14 J14 J24 J31 O15 |
| Date: | 2015–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20150094&r=lab |
| By: | Günalp, Burak; Cilasun, Seyit Mümin; Acar, Elif Öznur |
| Abstract: | A gender differential in wages is considered to be discriminatory if the differential cannot be explained by gender differences in productivity. Numerous studies have been performed to measure the extent of gender wage discrimination in countries across the world, and most report a substantial amount of wage differential after adjusting for productivity differences. This differential has been attributed to labor market discrimination against women. Using data from 2003 and 2010 Household Budget Surveys conducted by Turkish Statistical Institute, this study examines the male-female earnings differentials and measures the extent of pay discrimination in Turkey. To analyze the components of the earnings gap, two methodologies are employed: The standard Oaxaca-Blinder decomposition method and the Juhn-Murphy-Pierce decomposition method. The results of the study indicate that in both years, a significant portion of the observed wage differential is attributable to wage discrimination which records a rise over the period. |
| Keywords: | male-female earnings differentials,gender wage discrimination,Oaxaca-Blinder decomposition,Juhn-Murphy-Pierce decomposition |
| JEL: | J16 J31 J70 J71 O15 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201556&r=lab |
| By: | Pesliakaite, Jurgita |
| Abstract: | The view that an institutional structure causes rigidities of the labour market is broadly accepted by policy makers. This assessment is conventionally based on unemployment theories that establish a linkage between labour market institutions and unemployment in the long run. Empirical research engages in investigation if the theoretical link between unemployment and labour market institutions could be proved to prevail. This paper provides an econometric analysis of determinants of unemployment in the long run in a set of Central and Eastern European countries for the period of 2002–2012. The evidence that institutional structure cause rigidities of the labour market and have direct effects on unemployment rate in these economies is found in this study. A set of non-structural indicators, accounted by macroeconomic shocks, also prove to have effects on the labour market outcomes. From a policy making perspective such implications suggest that structural labour market reforms and increases in the overall labour market flexibility in these economies is required to bring unemployment rates down. |
| Keywords: | unemployment, labour market institutions, Central and Eastern European economies |
| JEL: | E02 J60 |
| Date: | 2015–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:66041&r=lab |
| By: | Barbara A. Butrica; Nadia S. Karamcheva |
| Abstract: | Automatic enrollment has been widely embraced for raising employee participation in 401(k) plans. However, the empirical evidence is based on data with limitations that, up until now, have prevented researchers from extrapolating the effects of automatic enrollment to the broader population of workers. This paper reexamines the determinants of 401(k) participation and contributions in the presence of automatic enrollment using nationally representative data from the Health and Retirement Study (HRS) for 2006 through 2012. The results confirm previous findings that automatic enrollment is associated with a higher proportion of workers included in DC plans; however, automatically enrolled workers are less likely to contribute to their DC plans than voluntarily enrolled workers. Auto enrollment is also associated with lower employee contribution amounts and rates. However, the employers of auto-enrolled workers are more likely to contribute to their employees’ accounts than are the employers of voluntarily enrolled workers. Additionally, employer contribution amounts and rates are higher among workers who are automatically enrolled. Even so, the combined effect is that the retirement accounts of automatically enrolled older workers receive, on average, $900 less in combined annual contributions and have contribution rates that are 1.6 percentage points lower than those of voluntarily enrolled workers. The paper found that: - Automatic enrollment is associated with a higher probability of being included in a DC plan. - On average, workers who are automatically enrolled in a DC plan tend to be less likely to contribute positive amounts than those who opt in. - However, the employers of automatically enrolled workers are more likely to make contributions and to contribute, on average, higher amounts and a higher percentage of their employees’ earnings. - The correlation between automatic enrollment and combined (employer and employee) contribution amounts and contribution rates, however, is still negative, despite controlling for a range of factors. The policy implications of the findings are: - Auto enrollment could do a better job of boosting overall contribution levels among participants. - Possible ways to achieve this might be by offering a more generous employer match and by using auto escalation. - More research and better data are needed to assess the potential impact on retirement plan contributions of implementing automatic enrollment features in DC plans on a national scale. |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2015-14&r=lab |
| By: | d'Albis, Hippolyte; Boubtane, Ekrame |
| Abstract: | In this article, administrative data on residence permits are used to compute permanent and legal migration flows of non-European foreigners. Entree and exist flows are computed yearly for the period 1998-2013. All methodological choices are extensively discussed. |
| Keywords: | Immigration ; Entree and exit flows ; France ; Residence permits. |
| JEL: | J61 |
| Date: | 2015–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65959&r=lab |