|
on Labour Economics |
| By: | Anna Maria Mayda; Francesc Ortega; Giovanni Peri; Kevin Shih; Chad Sparber |
| Abstract: | The H-1B program allows skilled foreign-born individuals to work in the United States. The annual quota on new H-1B visa issuances fell from 195,000 to 65,000 for employees of most firms in fiscal year 2004. However, this cap did not apply to new employees of colleges, universities, and non-profit research institutions. Additionally, existing H-1B holders seeking to renew their visa were also exempt from the quota. Using a triple difference approach, this paper demonstrates that cap restrictions significantly reduced the employment of new H-1B workers in for-profit firms relative to what would have occurred in an unconstrained environment. Employment of similar native workers in for profit firms did not change, however, consistently with a low degree of substitutability between H1B and native workers. The restriction also redistributed H-1Bs toward computer-related occupations, Indian-born workers, and firms using the H-1B program intensively. |
| JEL: | F22 J61 O33 R10 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23902&r=lab |
| By: | Deborah A. Cobb-Clark (School of Economics, The University of Sydney, ARC Centre of Excellence for Children and Families over the Life Course, and IZA Institute of Labor Economics); Sarah C. Dahmann (School of Economics, The University of Sydney, and ARC Centre of Excellence for Children and Families over the Life Course); Nicolás Salamanca (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne, ARC Centre of Excellence for Children and Families over the Life Course, and IZA Institute of Labor Economics); Anna Zhu (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne, ARC Centre of Excellence for Children and Families over the Life Course, and IZA Institute of Labor Economics) |
| Abstract: | We use variation in the extent of generational persistence across social assistance payments to shed light on the factors leading to intergenerational disadvantage. Our administrative data come from the Australian social security system and provide us with detailed social assistance trajectories – across the entire social safety net – for a birth cohort of young people and their families over an 18-year period. We find that young people are 1.8 times more likely to need social assistance if their parents have a history of receiving social assistance themselves. These young people also receive more intensive support; an additional $12,000 over an 8-year period. The intergenerational correlation is particularly strong in the case of disability payments, payments for those with caring responsibilities, and parenting payments for single parents. Disadvantage stemming from parents’ poor labor market outcomes seems to be easier for young people to overcome. This suggests that parental disadvantage may be more harmful to children’s later life outcomes if it is more strongly driven by circumstances rather than personal choice. |
| Keywords: | Intergenerational correlations, socioeconomic disadvantage, social assistance |
| JEL: | H53 I38 J62 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2017n28&r=lab |
| By: | Marco de Pinto (IAAEU Trier and Trier University); Jochen Michaelis (University of Kassel) |
| Abstract: | Empirical evidence suggests that high-productivity firms face stronger trade unions than low-productivity firms. Then a policy that puts all unions into a better bargaining position is no longer neutral for firm selection as in models with a uniform bargaining strength across firms. Using a Melitz-type model, we show that firm selection becomes less severe. Since more low-productivity firms enter the market, the negative employment effect of unionization is mitigated. Neglecting inter-union differences in bargaining power leads to an overestimation of the negative labor market effects. However, trade liberalization increases unemployment because firms with the least powerful labor unions have to leave the market. |
| Keywords: | Trade Unions, Bargaining Power, Firm Heterogeneity, International Trade, Unemployment |
| JEL: | F1 F16 J5 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201743&r=lab |
| By: | Chen, Yuanyuan (Shanghai University of Finance and Economics); Wang, Le (University of Oklahoma); Zhang, Min (East China Normal University) |
| Abstract: | The use of informal job search method is prevalent in many countries. There is, however, no consensus in the literature on whether it actually matters for wages, and if it does, what are the underlying mechanisms. We empirically examine these issues specifically for rural migrants in urban China, a country where one of the largest domestic migration in human history has occurred over the past decades. We find that there exists a significant wage penalty for those migrant workers who have conducted their search through informal channels, despite their popularity. Our further analysis suggests two potential reasons for the wage penalty: 1) the informal job search sends a negative signal (of workers' inability to successfully find a job in a competitive market) to potential employers, resulting in lower wages; and 2) there exists a trade-off between wages and search efficiency for quicker entry into local labor market. We also find some evidence that the informal job search may lead to low-skilled jobs with lower wages. We do not find strong evidence supporting alternative explanations. |
| Keywords: | social network, rural-urban migrants, wage, search friction, information asymmetry, chinese economy |
| JEL: | J31 J64 P2 P5 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11058&r=lab |
| By: | Asali, Muhammad (ISET, Tbilisi State University); Pignatti, Norberto (ISET, Tbilisi State University); Skhirtladze, Sophiko (ISET, Tbilisi State University) |
| Abstract: | We provide the first experimental evidence about ethnic discrimination in the labor market in Georgia. We randomly assign Georgian and non-Georgian, male and female, names to similar resumes and apply for jobs as advertised in help-wanted web sites in Georgia. We find that gender has no effect on the probability of callback, but a job applicant who is ethnic Georgian is twice more likely to be called for a job interview than an equally skilled ethnic non-Georgian (Azeri or Armenian). The almost 100% gap in callbacks is statistically significant and cannot be abridged by having more experience or education. Both taste-based discrimination and statistical discrimination models are consistent with the evidence provided in this study. Labor market discrimination tends to aggravate in economic busts. |
| Keywords: | employment discrimination, field experiment, former Soviet Union, business cycles |
| JEL: | J15 J71 C93 P23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11056&r=lab |
| By: | Christine de la Maisonneuve (OECD) |
| Abstract: | Growth has become more inclusive in recent years in Colombia. Strong growth and targeted social policies have reduced absolute poverty. Conditional cash transfers and education policies have increased attendance in schools. Universal health care is improving wellbeing of many Colombians. Reductions in non-wage labour costs have increased formal employment and access to social benefits. However, income inequality remains high with large disparities across regions. The causes are many. High informality keeps many workers in low quality jobs without social benefits or access to finance. Inequality is a gender issue as labour force participation rates and wages are lower for women than for men. Inequalities also reflect low social mobility as opportunities for education and jobs are influenced by socio-economic backgrounds. More targeted programmes are necessary to increase education enrolment rates of disadvantaged children in less developed regions. Further reductions in non-wage labour costs can raise formal employment. Better access to labour market programmes, early childhood education and elderly and disability care can boost female labour market participation. More resources are needed for targeted social programmes to achieve stronger outcomes. A comprehensive pension system reform is needed to extend coverage and alleviate old-age poverty. This Working Paper relates to the 2017 OECD Economic Survey of Colombia (www.oecd.org/eco/surveys/economic-surve y-colombia.htm) |
| Keywords: | Education, Health, Inclusive growth, Inequality, Informality, Labour market, Pensions, Regional Development, Social protection |
| JEL: | E24 E26 H20 H50 I0 J0 |
| Date: | 2017–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1423-en&r=lab |
| By: | Álvaro Pina (OECD) |
| Abstract: | Luxembourg’s large foreign-born population is a pillar of the country’s prosperity: they have brought skills and knowledge to many sectors of the economy. They also tend to successfully find jobs, with a higher employment rate than natives. However, not all immigrants have done well. The minority from non-EU origin (about 10% of the country’s population) suffers from high unemployment, large gender gaps in activity and below-average incomes. Refugees are particularly vulnerable. Other integration shortcomings go beyond disadvantaged minorities. Pervasive labour market segmentation is well illustrated by the marked under-representation of the foreign-born in public sector jobs. Political participation of immigrants at local level is modest. At school, their children are often put at a disadvantage by an education system which tends to perpetuate socio-economic inequality. The diversity of Luxembourg’s society contributed by immigrants should be seen as an asset for economic growth and well-being. Initiatives such as the diversity charter can help private and public organisations to reap the benefit of diversity through the inclusion of outsiders and the strengthening of social cohesion. Learning the languages of Luxembourg, developing social capital and having foreign qualifications validated are key preconditions for successful integration. Education requires both general equity-enhancing reforms, starting at early childhood, and targeted support to disadvantaged students, including upgraded vocational studies. Furthermore, job matching and social cohesion would benefit from greater immigrant participation in public sector employment and civic life. Avoiding that asylum seekers undergo protracted inactivity is also a concern. This Working Paper relates to the 2017 OECD Economic Survey of Luxembourg (www.oecd.org/eco/surveys/economic-surve y-luxembourg.htm). |
| Keywords: | asylum seekers, early childhood education and care, equity in education, labour market segmentation, public employment, school tracking |
| JEL: | H52 I24 I28 J15 J45 J48 J61 |
| Date: | 2017–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1418-en&r=lab |
| By: | Merkl, Christian; Stüber, Heiko |
| Abstract: | The paper analyzes the effects of different wage cyclicalities on labor market flow dynamics. We derive a model that allows for heterogeneous wage cyclicalities across firms over the business cycle and confront the theoretical results with the new AWFP dataset. Establishments with more procyclical wage movements over the business cycle have a more countercyclical hires rate. The quantitative responses are in line with the proposed model. |
| JEL: | E24 E32 J64 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168129&r=lab |
| By: | Töpfer, Marina |
| Abstract: | In this paper, we estimate the gender pay gap along the wage distribution using a detailed decomposition approach based on unconditional quantile regressions. Non-randomness of the sample leads to biased and inconsistent estimates of the wage equation as well as of the components of the wage gap. Therefore, the method is extended to account for sample selection problems. The decomposition is conducted by using Italian microdata. Accounting for labor market selection may be particularly relevant for Italy given a comparably low female labor market participation rate. The results suggest not only differences in the income gap along the wage distribution (in particular glass ceiling), but also differences in the contribution of selection effects to the pay gap at different quantiles. |
| Keywords: | Gender Pay Gap,Detailed Decomposition,Unconditional Quantile Regression,Sample Selection |
| JEL: | J7 J13 J31 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:262017&r=lab |
| By: | Andrew D. Foster; Mark R. Rosenzweig |
| Abstract: | This paper seeks to explain the U-shaped relationship between farm productivity and farm scale - the initial fall in productivity as farm size increases from its lowest levels and the continuous upward trajectory as scale increases after a threshold - observed across the world and in low-income countries. We show that the existence of labor-market transaction costs can explain why the smallest farms are most efficient, slightly larger farms least efficient and larger farms as efficient as the smallest farms. We show that to explain the rising upper tail of the U characteristic of high-income countries requires there be economies of scale in the ability of machines to accomplish tasks at lower costs at greater operational scales. Using data from the India ICRISAT VLS panel survey we find evidence consistent with these conditions, suggesting that there are too many farms, at scales insufficient to exploit locally-available equipment-capacity scale-economies. |
| JEL: | O13 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23909&r=lab |
| By: | Gazeley, Ian (University of Sussex); Holmes, Rose (University of Sussex); Newell, Andrew T. (University of Sussex); Reynolds, Kevin (University of Sussex); Gutierrez Rufrancos, Hector (University of Sussex) |
| Abstract: | We estimate calories available to workers' households in the USA, Belgium, Britain, France and Germany in 1890/1. We employ data from the United States Commissioner of Labor survey (see Haines, 1979) of workers in key export industries. We estimate that households in the USA, on average, had about five hundred daily calories per equivalent adult more than their French and German counterparts, with Belgian and British workers closer to the USA levels. We ask if that energy bonus gave the US workers more energy for work, and we conclude that, if stature is taken into account, workers in the US and UK probably had roughly the same level energy available for work, whereas the German and French workers most likely had significantly less. Finally we ask economic migration leads to taller children. To answer that we estimate the influence of children on calorie availability among ethnically British workers in the USA and, separately, among British workers in Britain. We find that US-based British households are at least as generous in terms of the provision of calories to their children as their Britain-based counterparts. Other things equal, this means that US-based British children would grow taller. |
| Keywords: | living standards, nutrition, international comparisons, migration |
| JEL: | J11 J61 N30 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11037&r=lab |
| By: | Jansson, Olle (Department of Economic History, Uppsala University) |
| Abstract: | The role and importance of employee organizations (i.e., unions) on policies concerning international migration have been studied extensively for decades. However, we know very little about the strategies of the organized interests of health care professionals. This paper will contribute to previous research, both internationally and in the Swedish context, on issues concerning the (re-)action of professional organizations towards migration reforms that might endanger the profession's control over their segment of the labor market. Through a study of the associations representing the two largest licensed health care professions in Sweden – physicians and nurses – the study investigates if, and how, they try to limit the competition in the labor market against reforms that are promoting increased mobility and international migration. The conclusions are mixed, suggesting that the long-term goals of professional associations are more important than strategies that might reduce the competition of foreign-educated practitioners in the short run. |
| Keywords: | international migration; regulated occupations; physicians; nurses; professionalism; migration policy; Sweden |
| JEL: | J44 J48 J51 J61 |
| Date: | 2017–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2017_018&r=lab |
| By: | Assaad, Ragui (University of Minnesota); Krafft, Caroline (St. Catherine University); Yassin, Shaimaa (University of Paris 1 Panthéon-Sorbonne) |
| Abstract: | There is potential for measurement problems in both retrospective and panel microdata. In this paper we compare results on basic indicators related to labor markets and their dynamics from retrospective and panel survey data in Egypt, in order to determine the conditions under which results are similar or different. Specifically, we (1) assess the consistency of reporting of time-invariant characteristics in different waves of the panel, (2) compare the retrospective and panel data results on past labor market statuses, (3) assess the consistency of estimates of labor market transition rates across two specific dates by comparing panel and retrospective data, (4) assess the consistency of estimates of the level and trends of annual labor market transition rates across retrospective data from different waves of the survey, and (5) assess whether retrospective data can provide accurate trends of labor market aggregates, such as unemployment rates. We find that it is possible to garner useful information on labor market dynamics from retrospective data, but one must be cautious about which information to trust and at what level of detail. We conclude with a discussion of implications for future research as well as future survey design. |
| Keywords: | panel data, retrospective data, survey data, measurement error, labor markets, Egypt |
| JEL: | C83 C81 J01 J62 J64 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11052&r=lab |
| By: | Su, Yaqin (Hunan University); Tesfazion, Petros (Central College); Zhao, Zhong (Renmin University of China) |
| Abstract: | Using a representative sample of rural migrants in cities, this paper investigates where the migrants in urban China come from, paying close attention to intra-provincial vs. inter-provincial migrants, and examining the differences in their personal attributes. We find that migrants who have come within the province differ significantly from those who have come from outside of the province. Using a nested logit model, we find that overall, higher wage differentials, larger population size, higher GDP per capita, and faster employment growth rate are the attributes of a city that attract migrants from both within and outside province. In addition, moving beyond one's home province has a strong deterrent effect on migration, analogous to the "border effect" identified in international migration studies. We also explore the role of culture, institutional barrier, and dialect in explaining such a pronounced "border effect". |
| Keywords: | rural-urban migration, inter- vs. intra-provincial migration, border effect, China |
| JEL: | J62 O15 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11029&r=lab |
| By: | Mesén Vargas, Juliana (IRES, Université catholique de Louvain); Van der Linden, Bruno (IRES, Université catholique de Louvain) |
| Abstract: | This article analyzes the behavioral effects of unemployment benefits (UB) and it characterizes their optimal level when jobless people only survive if they have access to a minimum or subsistence consumption level in each period. To survive when the level of UB is very low, they carry out a subsistence activity. Our model shows that if the level of UB is very low, increasing its level or providing liquidity to the agent can decrease the duration in unemployment; for higher levels of UB we reencounter the standard properties that increasing UB increases duration and that providing liquidity to the agent increases duration (Chetty, 2008). We also show that the optimal level of UB satisfies the Baily-Chetty formula (Baily, 1978, Chetty, 2006), but contrary to Chetty (2008), in our model the gain from insurance cannot be rewritten using sufficient statistics; we show that such decomposition requires specific modeling assumptions. |
| Keywords: | liquidity effect, scarcity, monetary costs, optimal insurance |
| JEL: | D91 H21 J64 J65 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11034&r=lab |
| By: | Bellmann, Lutz (Institute for Employment Research (IAB), Nuremberg); Caliendo, Marco (University of Potsdam); Tübbicke, Stefan (University of Potsdam) |
| Abstract: | Start-up subsidies for the unemployed have long been an important active labor market policy strategy in Germany. The current subsidy program underwent a major reform in 2011 that changed its key parameters: support was lowered, eligibility criteria were tightened and entitlement was abandoned by granting caseworkers the right to reject applications. Ex-ante predictions on the post-reform effectiveness of the program are ambiguous, and knowledge about the importance of institutional details of such a program is very limited, making a new evaluation necessary. In our descriptive analysis, we compare personal and business characteristics of participants before and after the reform and we find significant differences in terms of gender composition, educational attainment and industry-specific experience. Post-reform participants also perform better in terms of subsequent labor market integration and show signs of higher commitment. These findings give us some indication for interpreting our estimates of causal effects of the post-reform program. We find that for both men and women, employment and income effects of the post-reform program are positive, sizable, and larger than what was estimated for the pre-reform program. All in all, the programs effectiveness seems to have improved through the reform. Potential reasons for this are discussed and include better screening of participants by caseworkers, higher rates of commitment and changes in macroeconomic conditions. |
| Keywords: | start-up subsidies, policy reform, matching, effect heterogeneity |
| JEL: | J68 H43 C14 L26 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11055&r=lab |
| By: | Debra Lynne Shepherd (Department of Economics, Stellenbosch University) |
| Abstract: | Despite improvements over the past decade, South African women continue to be underrepresented in tertiary studies and professional careers in the fields of science, technology, engineering and math. This has implications not only for economic development and growth, but also for social inequality as women continue to have lower access to higher paying employment opportunities. Using data from the Trends in Mathematics and Science Study of 2011, this paper finds that whilst grade 9 girls in the poorest 80% of South African schools experience no difference in domain-specific performance, self-concept and motivation, girls in the wealthiest subset of schools are found to significantly underperform in both subjects, as well as possess lower self-concept and motivation, and higher anxiety. Teacher gender and education are shown to correlate with these results; specifically, female teachers with math backgrounds negatively influence girls’ performances in wealthy schools. This is argued to be in keeping with stereotype threat theory (Steele, 2003) whereby women that are highly identified with math are subject to greater anxiety and concern over their performance. The relative difference in the performance of girls taught by a female versus a male teacher compared to the performance of boys is smaller when exposed to teachers with education training, suggesting that classroom methodology plays a role in the attainment of girls. Student fixed effects estimation reveals that the teacher characteristics mentioned above play important roles for moderating the relationship between student self-concept and performance of boys and girls. |
| Keywords: | gender inequality, STEM, stereotype, performance, self-concept, development |
| JEL: | C21 I21 I24 J16 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers287&r=lab |