nep-lab New Economics Papers
on Labour Economics
Issue of 2017‒01‒15
seven papers chosen by
Joseph Marchand
University of Alberta

  1. Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior By Verena Lauber; Johanna Storck
  2. "The Great Recession and Racial Inequality: Evidence from Measures of Economic Well-Being" By Thomas Masterson; Ajit Zacharias; Fernando Rios-Avila; Edward N. Wolff
  3. IT outsourcing and firm productivity: Eliminating bias from selective missingness in the dependent variable By Breunig, Christoph; Kummer, Michael; Ohnemus, Jorg; Viete, Steffen
  4. Labor Drops: Experimental Evidence on the Return to Additional Labor in Microenterprises By Suresh De Mel; David McKenzie; Christopher Woodruff
  5. Forecasting labour supply and population: an integrated stochastic model By Fuchs, Johann; Söhnlein, Doris; Weber, Brigitte; Weber, Enzo
  6. The Life-cycle Benefits of an Influential Early Childhood Program By Jorge Luis García; James J. Heckman; Duncan Ermini Leaf; María José Prados
  7. How do entrepreneurial bosses influence their employees' future entrepreneurship choices? By Rocha, Vera; van Praag, Mirjam

  1. By: Verena Lauber; Johanna Storck
    Abstract: Despite political efforts, balancing work and family life is still challenging. This paper provides novel evidence on the effect of firm level interventions that seek to reduce the work-life conflict. The focus is on how a specific workplace policy, namely childcare support, affects the well-being, working time, and caring behavior of mothers with young children. We exploit the fact that since the mid 2000s an increasing number of employers have become proactive and implemented more family-friendly workplaces. These changes over time allow us to identify causal effects of childcare support using a difference-in-differences approach combined with matching. Based on a large panel dataset on families with children in Germany (FiD), we find evidence pointing to welfare enhancing effects of childcare support, as it strongly increases both childcare satisfaction and job satisfaction. In particular mothers who worked limited hours before the introduction, possibly due to constraints, increase their working time and use formal care more intensively. Satisfaction levels are also more strongly affected if mothers are career-orientated. In comparison, flexible work schedules, another family-friendly policy, only affect job satisfaction. Paternal well-being and behavior is not affected by the workplace policy.
    Keywords: family-friendly workplace policies, well-being, work-life balance, difference-in-differences, matching
    JEL: I31 J13 J22 J28
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp883&r=lab
  2. By: Thomas Masterson; Ajit Zacharias; Fernando Rios-Avila; Edward N. Wolff
    Abstract: The Great Recession had a tremendous impact on low-income Americans, in particular black and Latino Americans. The losses in terms of employment and earnings are matched only by the losses in terms of real wealth. In many ways, however, these losses are merely a continuation of trends that have been unfolding for more than two decades. We examine the changes in overall economic well-being and inequality as well as changes in racial economic inequality over the Great Recession, using the period from 1989 to 2007 for historical context. We find that while racial inequality increased from 1989 to 2010, during the Great Recession racial inequality in terms of the Levy Institute Measure of Economic Well-Being (LIMEW) decreased. We find that changes in base income, taxes, and income from nonhome wealth during the Great Recession produced declines in overall inequality, while only taxes reduced between-group racial inequality.
    Keywords: LIMEW; United States; Great Recession; Race; Distribution of Wealth; Distribution of Income
    JEL: D31 D63 I31 J15
    Date: 2017–01
    URL: http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_880&r=lab
  3. By: Breunig, Christoph; Kummer, Michael; Ohnemus, Jorg; Viete, Steffen
    Abstract: Missing values are a major problem in all econometric applications based on survey data. A standard approach assumes data are missing-at-random and uses imputation methods, or even listwise deletion. This approach is justified if item non-response does not depend on the potentially missing variables' realization. However, assuming missing-at-random may introduce bias if non-response is, in fact, selective. Relevant applications range from financial or strategic firm-level data to individual-level data on income or privacy-sensitive behaviors. In this paper, we propose a novel approach to deal with selective item nonresponse in the model's dependent variable. Our approach is based on instrumental variables that affect selection only through potential outcomes. In addition, we allow for endogenous regressors. We establish identification of the structural parameter and propose a simple two-step estimation procedure for it. Our estimator is consistent and robust against biases that would prevail when assuming missingness at random. We implement the estimation procedure using firm-level survey data and a binary instrumental variable to estimate the effect of outsourcing on productivity.
    Keywords: endogenous selection,IV-estimation,inverse probability weighting,missing data,productivity,outsourcing,semiparametric estimation
    JEL: C14 C36 D24 L24
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:16092&r=lab
  4. By: Suresh De Mel; David McKenzie; Christopher Woodruff
    Abstract: The majority of enterprises in developing countries have no paid workers. Is this optimal, or the result of frictions in labor markets? We conduct an experiment providing wage subsidies to randomly chosen microenterprises in Sri Lanka. In the presence of frictions, a short-term subsidy could have a lasting impact on employment. We find the subsidy induced firms to hire, but there was no lasting impact on employment, profitability, or sales. Analysis rules out several theoretical mechanisms that could result in sub-optimally low employment. We conclude that labor market frictions are not the reason own-account workers do not become employers.
    JEL: C93 D22 L26 O12 O17
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23005&r=lab
  5. By: Fuchs, Johann (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Söhnlein, Doris (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Weber, Brigitte (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Weber, Enzo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "This paper presents a stochastic integrated model to forecast the German population and labour supply until 2060. Within a cohort-component approach, the population forecast applies principal components to birth, mortality, emigration and immigration rates. The labour force participation rates are estimated by means of an econometric time series approach. All time series are forecast by bootstrapping. This allows fully integrated simulations and the possibility to illustrate the uncertainties in the form of confidence intervals. Our new forecast confirms the results from former studies. We conclude that even rising birth rates and high levels of immigration cannot break the basic demographic trend in the long run." (Author's abstract, IAB-Doku) ((en))
    JEL: C38 J11 J20 J21 J22
    Date: 2017–01–03
    URL: http://d.repec.org/n?u=RePEc:iab:iabdpa:201701&r=lab
  6. By: Jorge Luis García; James J. Heckman; Duncan Ermini Leaf; María José Prados
    Abstract: This paper estimates the long-term benefits from an influential early childhood program targeting disadvantaged families. The program was evaluated by random assignment and followed participants through their mid-30s. It has substantial beneficial impacts on health, children's future labor incomes, crime, education, and mothers' labor incomes, with greater monetized benefits for males. Lifetime returns are estimated by pooling multiple data sets using testable economic models. The overall rate of return is 13.7% per annum, and the benefit/cost ratio is 7.3. These estimates are robust to numerous sensitivity analyses.
    JEL: C93 I28 J13
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:22993&r=lab
  7. By: Rocha, Vera; van Praag, Mirjam
    Abstract: We adopt a process-based approach to investigate the influence of entrepreneurial bosses on the two main decisions of employees towards becoming entrepreneurs: exit from the current firm and entry into entrepreneurship. In other words, we study the push and pull mechanisms possibly underlying the influence of entrepreneurial bosses. We do so by employing an identification strategy based on comparisons of same-gender matches of bosses and employees, using rich register data for Denmark. We show that same-gender entrepreneurial bosses have a great impact on employees' future entrepreneurship choices, especially among women. We do not find any evidence that female bosses push female employees out of the workplace, by creating a discriminatory environment that forces them to search for alternative career paths. Instead, our analysis finds consistent support for pull mechanisms, with role modeling being the main explanation for the positive influence of female entrepreneurial bosses on female employees' transition into entrepreneurship. We show that the female boss effect is greater than other social interactions identified in prior research. We conclude that entrepreneurial bosses can be role models and female entrepreneurial bosses may thus act as a lever to reducing gender gaps in entrepreneurship rates.
    Keywords: entrepreneurship; female leadership; gender gaps; role models
    JEL: J16 J24 L26 M12 M13
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:11715&r=lab

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