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on Labour Economics |
| By: | Geoffrey Tate; Liu Yang |
| Abstract: | Internal labor markets facilitate cross-industry worker reallocation and collaboration, and the resulting benefits are largest when the markets include industries that utilize similar worker skills. We construct a matrix of industry pair-wise human capital transferability using information obtained from more than 11 million job changes. We show that diversifying acquisitions occur more frequently among industry pairs with higher human capital transferability. Such acquisitions result in larger labor productivity gains and are less often undone in subsequent divestitures. Moreover, acquirers retain more high skill workers and they exploit the real option to move workers from the target firm to jobs in other industries inside the merged firm. Overall, our results identify human capital as a source of value from corporate diversification and provide an explanation for seemingly unrelated acquisitions. |
| Keywords: | Corporate Diversification, Mergers and Acquisitions, Internal Labor Markets, Worker Mobility, Human Capital Transferability |
| JEL: | G34 J24 J62 M51 M54 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:15-31&r=all |
| By: | Larsen, Mona (Danish National Centre for Social Research (SFI)); Pedersen, Peder J. (Aarhus University) |
| Abstract: | In most OECD member countries labor force attachment has increased in recent years in the 60+ group. Focus in the paper is on the development in this area in Denmark, Norway and Sweden since the 1990s. The development in the same period in the German labor market is included as a frame of reference. Main emphasis is given to the development in two distinct age groups, i.e. people in the first half of the 60s of which many are eligible for early retirement programs and people older than 65 mostly eligible for social security retirement programs. For these two age groups the actual development in labor force participation is described based on register data and on labor force surveys along with indicators of cohort relevant changes in education and health. Focus in the paper includes also the gender aspect to accommodate stronger cohort effects for women than for men. The impact on labor force participation from individual education and from self-assessed health is analyzed based on available micro data. Policy reforms and changes in the retirement area have been enacted since the mid-1990s in the included countries and more sweeping reforms are enacted or under review for the years ahead. We include a brief survey of policy changes in the Scandinavian countries and Germany as other determinants of labor force participation in the 60 and older group. |
| Keywords: | employment, older workers, health, education, program changes |
| JEL: | I15 I25 J14 J26 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9393&r=all |
| By: | Nagore Garcia, Amparo (Tilburg University, School of Economics and Management) |
| Abstract: | This thesis addresses relevant questions related to labour market transitions in Spain. Using administrative records data from Spanish Social Security and applying correlated competing risks models, the impact of the current recession on unemployment and employment transitions and gender differences in labour market outcomes are studied. The Spanish labour market is characterized by high labour turnover (particularly, to other jobs in the expansion period and to unemployment in the recession), occupational segregation by gender and different returns to the characteristics by gender. During the current recession, both the unemployment duration and the inflows into unemployment have increased and the wages have declined, especially for men (reducing the gender gaps), young and older workers, immigrants and those with low level of qualification. High level of qualification, working in larger firms and high technology sector are associated with lower unemployment and better job quality. As a consequence, the Spanish labour market requires important reforms to attain the objectives of Europe 2020. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:ba0cb100-38a2-4964-bdcd-96ae12b5ad12&r=all |
| By: | Rehwald, Kai (Aarhus University); Rosholm, Michael (Aarhus University); Svarer, Michael (Aarhus University) |
| Abstract: | This paper compares the effectiveness of public and private providers of employment services. Reporting from a randomized field experiment conducted in Denmark we assess empirically the case for contracting out employment services for a well-defined group of highly educated job-seekers (unemployed holding a university degree). Our findings suggest, first, that private providers deliver more intense, employment-oriented, and earlier services. Second, public and private provision of employment services are equally effective regarding subsequent labour market outcomes. And third, the two competing service delivery systems appear to be equally costly from a public spending perspective. |
| Keywords: | active labour market policies, job-search assistance, contracting out, private provision of employment services, treatment effect evaluation, randomized trial, cost-analysis |
| JEL: | J64 J68 H41 H43 H44 L33 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9365&r=all |
| By: | Bridgman, Benjamin; Dürnecker, Georg; Herrendorf, Berthold |
| Abstract: | We provide evidence on household and market production in 36 countries since 1960. On average the household sector accounts for almost half of total hours worked. As GDP per capita increases, the employment share of household production in total hours worked initially declines and then hardly changes while the employment shares of market goods and services decrease and increase. Estimating the value added of household production yields similar patterns. Labor productivity of household production is lower than and positively correlated with that in the market. These findings can be used as an input into quantitative work involving household production. |
| Keywords: | household production ; marketization ; structural transformation |
| JEL: | O3 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:mnh:wpaper:39679&r=all |
| By: | Francesca Carta (Bank of Italy); Lucia Rizzica (Bank of Italy) |
| Abstract: | We theoretically show that when mothers need to buy childcare services not only if they work but also if they want to search actively for a job, a reduction in the price of childcare will increase their likelihood of searching but may decrease their willingness to accept a job offer and therefore lower employment. We test these predictions empirically by means of a Regression Discontinuity design and find that the introduction in Italy of pre-kindergarten, a much cheaper alternative to day care for 2-year-old children, increased both participation in the labour market and employment of mothers of eligible children. This effect was driven largely by a significant decrease in the stated reservation wage. |
| Keywords: | childcare, female labour supply, public services |
| JEL: | J13 J16 H41 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1030_15&r=all |
| By: | Spiros Bougheas (University of Nottingham); Carl Davidson (Michigan State University); Richard Upward (University of Nottingham); Peter Wright (University of Sheffield) |
| Abstract: | We develop a dynamic, stochastic, multi-sectoral, equilibrium model that allows for worker turnover, job turnover and career mobility. This serves to bridge the literatures on job reallocation and career progression. Our model makes a number of predictions: a positive correlation between job turnover rates and promotion rates; a positive correlation across sectors between mean real income and their corresponding variance; an inverse relationship between sector profitability and both the job turnover rate and income inequality. These predictions are supported empirically. |
| Keywords: | Worker turnover, job turnover, career mobility |
| JEL: | J62 J63 J24 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:cst:wpaper:14&r=all |
| By: | Hersch, Joni (Vanderbilt University); Xiao, Jean (Vanderbilt University) |
| Abstract: | There has been a considerable amount of work focusing on job satisfaction and sex, generally finding that women are more satisfied than men despite having objectively worse job conditions. But there is little evidence on whether job satisfaction differs by race or ethnicity. We use data from the 2010 National Survey of College Graduates to examine the relation between job satisfaction and race and ethnicity among Asian, black, Hispanic/Latino, and white workers. Overall job satisfaction does not differ by sex among college graduates. Relative to white workers of the same sex, Asian and black workers are far less satisfied. The lower satisfaction of Asian and black workers relative to white workers is not explained by immigrant status, job match, or other individual or job characteristics. |
| Keywords: | job satisfaction, gender, race and ethnicity, immigrants, college graduates, discrimination |
| JEL: | J15 J16 J28 J71 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9355&r=all |
| By: | Guisinger, Amy Y. (George Washington University); Hernandez-Murillo, Ruben (Federal Reserve Bank of Cleveland); Owyang, Michael T. (Federal Reserve Bank of St. Louis); Sinclair, Tara M. (George Washington University) |
| Abstract: | Okun's law is an empirical relationship that measures the correlation between the deviation of the unemployment rate from its natural rate and the deviation of output growth from its potential. In this paper, we estimate Okun's coefficients for each U.S. state and examine the potential factors that explain the heterogeneity of the estimated Okun relationships. We find that indicators of more flexible labor markets (higher levels of education achievement in the population, lower rate of unionization, and a higher share of non-manufacturing employment) are important determinants of the differences in Okun's coefficient across states. Finally, we show that Okun's relationship is not stable across specifications, which can lead to inaccurate estimates of the potential determinants of Okun's coefficient. |
| Keywords: | Correlated unobserved components; potential output; natural rate of unemployment |
| JEL: | C32 E32 R11 |
| Date: | 2015–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2015-029&r=all |
| By: | D'Adamo, Gaetano (Universidad de Valencia); Rovelli, Riccardo (University of Bologna) |
| Abstract: | Adopting a simple Phillips curve framework, we show that different labour market institutions across EU countries are associated with significant differences in the response of inflation to unemployment and exchange rate shocks. More wage coordination and higher union density flatten the Phillips curve and increase the response to the real exchange rate, i.e. the exchange rate pass-through. In addition, using a new approach to the classification of goods and services as "traded" or "non-traded", we show that both these institutional effects are significantly stronger for the more exposed (traded) sector. |
| Keywords: | labour market institutions, inflation determinants, sectoral inflation differentials, EU 27 |
| JEL: | E31 J50 J60 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9389&r=all |
| By: | Asako OHINATA (University of Leicester, UK, Department of Economics); Matteo PICCHIO (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali) |
| Keywords: | Long-term elderly care, ageing, difference-in-difference, means tested financial support, saving, wealth |
| JEL: | C21 D14 I18 J14 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:411&r=all |
| By: | Katrin Huber |
| Abstract: | Can moving to an earnings-related parental leave system influence children’s wellbeing and are heterogeneous effects on parents carried over to the entire family, making special groups of children worse off than others? To answer this question, this study exploits a large and unanticipated parental leave reform in Germany as a natural experiment. By replacing a means-tested by an earnings-related system the reform affected different groups of families to a variable extent. I detect significant negative effects on the personality of newborns whose families are subject to a nonpositive change in the overall benefit amount compared to the pre-reform situation. 2-3-year-old children belonging to the reform’s winners, however, improve their basic life skills and language skills |
| Keywords: | Children’s Well-Being, Parental Leave, Heterogeneous Effects |
| JEL: | J13 J18 J22 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp791&r=all |
| By: | Carrillo-Tudela, Carlos (University of Essex); Kaas, Leo (University of Konstanz) |
| Abstract: | We analyze the effects of adverse selection on worker turnover and wage dynamics in a frictional labor market. We consider a model of on-the-job search where firms offer promotion wage contracts to workers of different abilities, which is unknown to firms at the hiring stage. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers in equilibrium, whereas high-wage firms offer pooling contracts, promoting high-ability workers only. Low-ability workers have higher turnover rates and are more often employed in low-wage firms. The model replicates the negative relationship between job-to-job transitions and wages observed in the U.S. labor market. |
| Keywords: | adverse selection, on-the-job search, worker mobility, wage dynamics |
| JEL: | D82 J63 J64 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9367&r=all |
| By: | Christopher Goetz; Henry Hyatt; Erika McEntarfer; Kristin Sandusky |
| Abstract: | In this paper, we highlight the potential for linked employer-employee data to be used in entrepreneurship research, describing new data on business start-ups, their founders and early employees, and providing examples of how they can be used in entrepreneurship research. Linked employer-employee data provides a unique perspective on new business creation by combining information on the business, workforce, and individual. By combining data on both workers and firms, linked data can investigate many questions that owner-level or firm-level data cannot easily answer alone - such as composition of the workforce at start-ups and their role in explaining business dynamics, the flow of workers across new and established firms, and the employment paths of the business owners themselves. |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:15-29&r=all |
| By: | Linda N. Edwards (Ph.D. Program in Economics, Graduate Center, CUNY); Takuya Hasebe (Sophia University, Tokyo, Japan); Tadashi Sakai (Hosei University, Tokyo, Japan) |
| Abstract: | Prompted by concordant upward trends in both the university advancement rate and the unmarried rate for Japanese women, this paper investigates whether the Equal Employment Opportunity Act (EEOA), which was passed in 1985, affected women•s marriage decisions either directly or via their decisions to pursue university education. To this end, we estimate a model that treats education and marriage decisions as jointly determined using longitudinal data for Japanese women. We find little evidence that the passage of EEOA increased the proportion of women who advance to university, but strong support for the proposition that it increased the deterrent effect of university education on marriage. |
| Keywords: | Equal Employment Opportunity Act, marriage, university education |
| JEL: | J12 J24 I21 K31 |
| Date: | 2015–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cgc:wpaper:007&r=all |