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on Labour Economics |
| By: | Stephanie Lluis (Department of Economics, University of Waterloo); Brian McCall (University of Michigan) |
| Abstract: | We apply a difference-in-differences estimation approach to analyze the effect of four Employment Insurance program initiatives which took place between 2004 and 2009 in a subset of Canadian Employment Insurance regions. The pilots increased the generosity of the EI system regarding EI eligibility, benefit amount, benefit duration and the allowable earning criteria. These pilots were run in about 50% of the EI regions until August 2008 providing a quasi-experimental setting to analyze the impact of increased generosity of EI on labour market outcomes. We use the Labour Force Survey data to study the aggregate impact of the four pilots on monthly labour force transitions into employment, unemployment and nonemployment as well as job search behaviour. |
| JEL: | J62 J65 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:1701&r=lab |
| By: | Hie Joo Ahn; Ling Shao |
| Abstract: | This paper provides new evidence for cyclicality in the job-search effort of employed workers, on-the-job search (OJS) intensity, in the United States using American Time Use Survey and various cyclical indicators. We find that OJS intensity is countercyclical along both the extensive and intensive margins, with the countercyclicality of extensive margin stronger than the other. An increase in the layoffs rate and the deterioration in expectations about future personal financial situation are the primary factors that raise OJS intensity. Our findings suggest that the precautionary motive in the job search is a crucial driver of the countercyclicality in OJS intensity. |
| Keywords: | On-the-job search ; Business cycles ; Labor flows ; Time use |
| JEL: | E24 E32 J22 J63 |
| Date: | 2017–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2017-25&r=lab |
| By: | Julie Beugnot (Université Bourgogne Franche-Comté, CRESE); Guy Lacroix (Université Laval, CRREP, CIRANO); Olivier Charlot (Université de Cergy Ponthoise, THEMA) |
| Abstract: | In this paper we analyze the link between homeownership and various aggregate and individual labour market outcomes. Our aim is to investigate the likely consequences of public policies that promote homeownership. To this end, we develop a circular firm-worker matching model with Nash wage bargaining and free market entry. Homeowners are assumed to be less mobile than tenants due to higher mobility costs mainly induced by housing market frictions. Through extensive numerical simulations, we show that: (1) Higher homeownership rates need not lead to higher unemployment rates, contrary to the so-called Oswald’s hypothesis, but depends crucially on the importance of mobility costs mainly driven by housing market regulation; (2) while increased homeownership may prove harmful to some macroeconomic labour market indicators, it is always beneficial to individuals’ labour market performances. |
| Keywords: | Stochastic job matching, Homeownership, Unemployment, Mobility |
| JEL: | H31 J61 J64 R23 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:crb:wpaper:2017-05&r=lab |
| By: | Gay, Victor; Boehnke, Jörn |
| Abstract: | We explore the effect of military fatalities from World War I on female labor participation in post-war France. We build a unique dataset containing individual level information for all 1.3 million fallen soldiers, and find that the tightness of the marriage market along with negative income shocks generated by the scarcity of men induced many young single women and older widows to enter the labor force permanently after the war, especially in the industrial sector. These findings are robust to alternative empirical strategies, including an instrumental variables strategy based on idiosyncrasies generated by the recruitment process of the army. |
| Keywords: | female labor, labor supply, sex ratio, marriage market |
| JEL: | J12 J16 J22 N34 |
| Date: | 2017–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77560&r=lab |
| By: | Christoph E. Boehm; Aaron Flaaen; Nitya Pandalai-Nayar |
| Abstract: | We provide three new stylized facts that characterize the role of multinationals in the U.S. manufacturing employment decline, using a novel microdata panel from 1993-2011 that augments U.S. Census data with firm ownership information and transaction-level trade. First, over this period, U.S. multinationals accounted for 41% of the aggregate manufacturing decline, disproportionate to their employment share in the sector. Second, U.S. multinational-owned establishments had lower employment growth rates than a narrowly-defined control group. Third, establishments that became part of a multinational experienced job losses, accompanied by increased foreign sourcing of intermediates by the parent firm. To establish whether imported intermediates are substitutes or complements for U.S. employment, we develop a model of input sourcing and show that the employment impact of foreign sourcing depends on a key elasticity of firm size to production efficiency. Structural estimation of this elasticity finds that imported intermediates substitute for U.S. employment. In general equilibrium, our estimates imply a sizable manufacturing employment decline of 13%. |
| Keywords: | Multinational Firms, Offshoring, Outsourcing, Manufacturing Employment |
| JEL: | F14 F16 F23 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-22&r=lab |
| By: | Byeongwoo KANG (Institute of Innovation Research, Hitotsubashi University); Yukihito Sato (Inter-disciplinary Studies Center, Institute of Developing Economies (IDE-JETRO)); Yasushi UEKI (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | Attracting highly skilled workers is a major element in the economic development of many countries, especially developing ones. However, workers generally move from developing countries to developed ones. Historical evidence indicates that Korean and Taiwanese firms scout for highly skilled (retired or soon-to-retire) Japanese workers to accrue, and catch up on, knowledge. Therefore, this paper investigates how these firms scout for highly skilled Japanese workers. Aiming to produce evidence rather than testing hypotheses, this paper gives practical information on firms in developing countries in attracting highly skilled workers to drive future growth. In addition, this paper provides insights into the international mobility of highly skilled workers from a developed country to developing countries, which has not been examined in the previous literature. |
| Keywords: | Highly skilled, Mobility, Japan, Republic of Korea, Taiwan |
| JEL: | F22 J61 O15 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2016-31&r=lab |
| By: | Eleni Iliopulos (University of Evry and CEPREMAP); François Langot (University of Le Mans (GAINS-TEPP & IRA), Paris School of Economics and IZA); Thepthida Sopraseuth (University of Cergy Pontoise (THEMA) and CEPREMAP) |
| Abstract: | We study the welfare costs of business cycles in a search and matching model with financial frictions à la Kiyotaki & Moore (1997). We investigate the mechanisms that allow the model to replicate the volatility on labor and financial markets. Business cycle costs are sizable and asymmetric. This result is not trivial because the introduction of financial frictions does not per se always dampen welfare. Indeed, when credit costs are counter-cyclical and very responsive to productivity shocks, firms could benefit so much from the fall in hiring costs that the average job finding rate lies above its steady state value. |
| Keywords: | Welfare, business cycle, financial friction, labor market search |
| JEL: | E32 J64 G21 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:eve:wpaper:17-02&r=lab |