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on Labour Economics |
| By: | Cabo, Francisco; Martín-Román, Ángel L. |
| Abstract: | A dynamic Stackelberg game analyzes collective bargaining between a trade union (leader) and a firm (follower) in a monopoly union model. Frictional effects (FE) for the firm encompass symmetric adjustment costs linked to the number of hired and fired workers, plus a wage-dependent term (assuming wage-dependent hiring costs and wage discrimination against newcomers). The union faces marginally increasing costs in firings and marginally decreasing benefits from hirings. The two-part FE for the firm, the FE for the union, or both jointly considered differently affect employment and wages. Interestingly, standard adjustment costs increase hirings, even while the union reduces wages. |
| Keywords: | dynamic labor demand, collective wage bargaining, monopoly union model, adjustment costs, Stackelberg differential game |
| JEL: | C61 C73 J23 J51 |
| Date: | 2017–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77562&r=lab |
| By: | Konstantinos Angelopoulos; Wei Jiang; James Malley |
| Abstract: | We extend the canonical model of search and matching frictions by including capital-skill complementarity in production, labour markets with skilled and unskilled workers and on-the-job-learning (OJL) within and across skill types. These extensions capture key characteristics of skilled and unskilled labour markets in the data. We find that increases in public spending to enhance unskilled productivity via OJL are beneficial to employed unskilled workers and reduce earnings inequality between employed skilled and unskilled labour. However, unskilled unemployment and labour income inequality within the group of unskilled labour rises. We next find that vacancy subsidies work to increase employment and returns to unskilled workers. However, unemployment for skilled workers rises and skilled wages and labour income fall in the short-run. We finally show that it is possible to increase skilled vacancy subsidies to nullify the negative effects on skilled employment following an increase in unskilled vacancy subsidies. |
| Keywords: | fiscal policy; sectoral labour productivity; earnings inequality; search and matching |
| JEL: | E24 E32 J63 J64 J68 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ukc:ukcedp:1704&r=lab |
| By: | Annette Bergemann; Regina T. Riphahn |
| Abstract: | We study the short, medium, and longer run employment effects of a substantial change in the parental leave benefit program in Germany. In 2007, a means-tested parental leave transfer program that had paid benefits for up to two years was replaced by an earnings related transfer which paid benefits for up to one year. The reform generated winners and losers with heterogeneous response incentives. We find that the reform speeds up the labor market return of both groups of mothers after benefit expiration. The overall time until an average mother with (without) prior claims to benefits returns to the labor force after childbirth declined after the reform by 10 (8) months at the median. We show that likely pathways for this substantial reform effect are changes in social norms and mothers' preferences for economic independence. |
| Keywords: | female labor supply, maternal labor supply, parental leave, parental leave benefit, child-rearing benefit, parents' money |
| JEL: | J13 J21 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp900&r=lab |
| By: | Fabio Berton; Sauro Mocetti; Andrea Presbitero; Matteo Richiardi |
| Abstract: | We analyze the employment effects of financial shocks using a rich data set of job contracts, matched with the universe of firms and their lending banks in one Italian region. To isolate the effect of the financial shock we construct a firm-specific time-varying measure of credit supply. The contraction in credit supply explains one fourth of the reduction in employment. This result is concentrated in more levered and less productive firms. Also, the relatively less educated and less skilled workers with temporary contracts are the most affected. Our results are consistent with the cleansing role of financial shocks. |
| Keywords: | Bank credit;Italy;External shocks;Business enterprises;Employment;Banks;Loans;Labor markets;Bank lending channel; Job contracts; Employment; Financing constraints; Cleansing effect |
| Date: | 2017–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:17/38&r=lab |
| By: | Golsteyn, Bart H.H. (Maastricht University); Stenberg, Anders (SOFI, Stockholm University) |
| Abstract: | Two common hypotheses regarding the relative benefits of vocational versus general education are (1) that vocational skills enhance relative short-term earnings and (2) that general skills enhance relative long-term earnings. Empirical evidence for these hypotheses has remained limited. Based on Swedish registry data of individuals in short (2-year) upper secondary school programs, this study provides a first exploration of individuals' earnings across nearly complete careers. The descriptive earnings patterns indicate support for both hypotheses (1) and (2). The support holds when controlling for GPA and family fixed effects and also when taking into account enrolment in further education and fertility decisions. |
| Keywords: | human capital, vocational education, life cycle, tracking |
| JEL: | J24 J64 J31 I20 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10593&r=lab |
| By: | Miguel Jaramillo-Baanante (Group for the Analysis of Development - GRADE) |
| Abstract: | As in other developing countries, Peru’s demographic transition is well underway. Concurrently, women’s labor market participation and employment rates have substantially increased. In this paper we estimate the causal effect that the reduction in fertility rates has on women’s employment using instrumental variables already tested in developed countries—twins in the first birth and the sex composition of the two oldest children. We also analyze the heterogeneity of the effects along three lines: marriage status of the mother, age of the first (second) child, and mother’s education. We find strong effects of fertility. According to our results, 29 percent of the total increase in women’s rate of employment between 1993 and 2007 can be attributed to the reduction in fertility rates. This is a considerable magnitude, more than four times as large as the estimate for US by Jacobsen et al. (1999). Effects are largest in women with children 2 years old or younger and decline inversely as the first child increases in age, but are still significant when she reaches 10. Effects also vary with the mother’s education level, tending to be stronger as women have more education. Finally, these effects are smaller for married women than for all women. |
| Keywords: | Fertility, labor market decisions, female labor, instrumental variables |
| JEL: | J13 J22 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:2017-090&r=lab |
| By: | Ruist, Joakim (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | This study follows a random sample of 20% of the earliest post-EU-enlargement immigrants during their first decade in Sweden, studying their patterns of outmigration and income assimilation. The results show that outmigration is low: around 80% appear to be still present in Sweden during the full year 2013. Annual outmigration probabilities are near zero among migrants that earned an income that was at least high enough to live on in the previous year. Those leaving Sweden are thus mostly “failed migrants”, who did not manage to provide for themselves. Early income is far higher for male than for female migrants, with most females who live in couples initially earning zero income. Yet after less than one decade the gender gap in income is not larger than that in the total Swedish population of similar ages. Together with female migrants being better educated when migrating, this indicates strong male dominance in the migration decision, yet mostly so in the short term: For migration to happen, the short-term job opportunities of the male partner, and the longer-term prospects of the female, both needed to be favorable. |
| Keywords: | EU enlargement; migration; outmigration; income assimilation; family migration |
| JEL: | F22 J61 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0696&r=lab |
| By: | Ernest MIGUELEZ; Claudia NOUMEDEM TEMGOUA |
| Abstract: | This paper documents the influence of networks of highly-skilled migrants on international knowledge flows. It adds to the growing literature on highly-skilled international migration and its contribution to international knowledge diffusion, in migrants’ home as well as host countries. In particular, it first explores knowledge feedbacks to home countries generated by migrant inventors, a representative category of high-skilled migrants, most of them scientists and engineers. Second, it investigates the knowledge inflows to host countries brought by inventors. We test our hypothesis of a positive relationship between knowledge flows and highly skilled migration in a country-pair gravity model setting, for the period 1990-2010, using patent citations across countries as a measure of international knowledge diffusion. Our results confirm our initial assumption on the positive impact of highly skilled migrants on knowledge flows to their homelands as well as to their host countries. We find doubling the number of inventors of a given nationality at a destination country, leads to an 8.3% increase in knowledge outflows to their home economy from that same host land; while a similar increase in the number of migrant inventors produces a 6% increase in the knowledge inflows to the host economy. |
| Keywords: | migration, brain gain, diaspora, diffusion, inventors, patents, PCT patents |
| JEL: | C8 J61 O31 O33 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2017-07&r=lab |