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on Labour Economics |
| By: | Rupert, Peter (University of California, Santa Barbara); Zanella, Giulio (University of Bologna) |
| Abstract: | Working-age grandparents supply large amounts of child care, an observation that raises the question of how having grandchildren affects grandparents' own labor supply. Exploiting the unique genealogical design of the PSID and the random variation in the timing when the parents of first-born boys and girls become grandparents, we estimate a structural labor supply model and find a negative effect on employed grandmother's hours of work of about 30% that is concentrated near the bottom of the hours distribution, i.e., among women less attached to the labor market. Implications for the evaluation of child care and parental leave policies are discussed. |
| Keywords: | labor supply, grandparents, child care |
| JEL: | D19 J13 J14 J22 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11235&r=lab |
| By: | Luigi Minale (Universidad Carlos III de Madrid) |
| Abstract: | This paper analyses the way households in rural China use rural-urban migration and off-farm work as a response to negative productivity shocks in agriculture. I employ various waves of a longitudinal survey to construct a panel of individual migration and labour supply histories, and match them to detailed weather information, which I use to instrument agricultural productivity. For identification, I exploit the year-by-county variation in growing season rainfalls to explain within-individual changes in labor allocation. Data on days of work supplied to each sector allow to study the responses to weather shocks along both the participation and the intensive margin. Results suggest that farming activity decreases by 4.5% while migration increases by about 5% in response to a 1-standard deviation negative rainfall shock. Increment in rural-urban migration derives from both longer spells in the city as well as raise in the likelihood to participate in the urban sector. I find interesting heterogeneous responses across generations driven by age-specific migration costs and changes in the relative productivity of sectors. Finally, land tenure insecurity seems to partially prevent households from freely reallocating labor away from farming in bad times. |
| Keywords: | Agricultural productivity, Labor supply, Rural-urban migration, China |
| JEL: | J22 R23 J61 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1804&r=lab |
| By: | Joan Monras (CEMFI and CEPR); Javier Vázquez-Grenno (Universitat de Barcelona and IEB); Ferran Elias (University of Copenhagen) |
| Abstract: | This paper investigates the consequences of the legalization of around 600,000 immigrants by the unexpectedly elected Spanish government of Zapatero following the terrorist attacks of March 2004 (Garcia-Montalvo, 2011). Using detailed data from payroll-tax revenues, we estimate that each newly legalized immigrant increased local payroll-tax revenues by 4,189 euros on average. This estimate is only 55 percent of what we would have expected from the size of the influx of newly documented immigrants, which suggests that newly legalized immigrants probably earned lower wages than other workers and maybe affected the labor-market outcomes of those other workers. We estimate that the policy change deteriorated the labor-market outcomes of some low-skilled natives and immigrants and improved the outcomes of high-skilled natives and immigrants. This led some low-skilled immigrants to move away from high-immigrant locations. Correcting for internal migration and selection, we obtain that each newly legalized immigrant increased payroll-tax revenues by 4,801 euros, or 15 percent more than the estimates from local raw payroll-tax revenue data. This shows the importance of looking both at public revenue data and the labor market to understand the consequences of amnesty programs fully. |
| Keywords: | Immigration, undocumented immigrants, public policy evaluation |
| JEL: | F22 J31 J61 R11 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:18-283&r=lab |
| By: | Cahuc, Pierre (Ecole Polytechnique, Paris); Carcillo, Stéphane (OECD); Le Barbanchon, Thomas (Bocconi University) |
| Abstract: | This paper analyzes the effectiveness of hiring credits. Using comprehensive administrative data, we show that the French hiring credit, implemented during the Great Recession, had significant positive employment effects and no effects on wages. Relying on the quasi-experimental variation in labor cost triggered by the hiring credit, we estimate a structural search and matching model. Simulations of counterfactual policies show that the effectiveness of the hiring credit relied to a large extent on three features: it was non-anticipated, temporary and targeted at jobs with rigid wages. We estimate that the cost per job created by permanent hiring credits, either countercyclical or time-invariant, in an environment with flexible wages would have been much higher. |
| Keywords: | hiring credit, labor demand, search and matching model |
| JEL: | C31 C93 J6 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11248&r=lab |
| By: | Petrunyk, Inna (Leuphana University Lüneburg); Pfeifer, Christian (Leuphana University Lüneburg) |
| Abstract: | This paper explores the effects of a major reform of unemployment benefits in Germany on the labor market outcomes of individuals with some health impairment. The reform induced a substantial reduction in the potential duration of regular unemployment benefits for older workers. This work analyzes the reform in a wider framework of institutional interactions, which allows us to distinguish between its intended and unintended effects. Our results provide causal evidence for a significant decrease in the number of days in unemployment benefits and increase in the number of days in employment. However, they also suggest a significant increase in the number of days in unemployment assistance, granted upon exhaustion of unemployment benefits. Transitions to unemployment assistance represent an unintended effect, limiting the success of a policy change that aims to increase labor supply via reductions in the generosity of the unemployment insurance system. |
| Keywords: | policy evaluation, labor market reform, unemployment insurance, difference-in-differences |
| JEL: | I1 J2 J65 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11300&r=lab |
| By: | Özgören, Ayşe Abbasoğlu (Hacettepe University); Ergöçmen, Banu (Hacettepe University); Tansel, Aysit (Middle East Technical University) |
| Abstract: | The relationship between fertility and employment among women is a challenging topic that requires further exploration, especially for developing countries where the micro and macro evidence fails to paint a clear picture. This study analyzes the two-way relationship between women's employment and fertility in Turkey using a hazard approach with piece-wise constant exponential modelling, using data from the 2008 Turkey Demographic and Health Survey. To the best of the authors' knowledge, this is the first study that makes use of an event history analysis to analyze this relationship within a developing country context. Specifically, a separate analysis is made of the association between the employment statuses of women in their first, second, third, and fourth and higher order conceptions, and the association of fertility and its various dimensions with entry and exit from employment. The findings suggest that a two-way negative association exists between fertility and employment among women in Turkey, with increasing intensities identified among some groups of women. Our findings also cast light on how contextual changes related to the incompatibility of the roles of worker and mother have transformed the fertility-employment relationship in Turkey, in line with propositions of the role incompatibility hypothesis. |
| Keywords: | fertility, employment, women, event history analysis, Turkey |
| JEL: | C41 J13 J16 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11238&r=lab |
| By: | KAWAGUCHI Daiji; TORIYABE Takahiro |
| Abstract: | Most developed countries adopt parental leave policies to promote women's labor force participation without sacrificing family formation. Studies find that short-term parental leaves for women increase the time spent at home and promote their return to the labor force after childbearing, but some studies point out that long-term parental leaves hinder the career advancement of high-skilled women. This paper analyzes heterogeneous impacts of parental leave policies on women's skill-use intensity by skill level, drawing on rich information on individual skill and skill-use intensity available from the micro data of the Programme for the International Assessment of Adult Competencies (PIAAC), which covers 30 countries. The results show that longer parental leaves narrow the gender gap in skill-use intensity among low-skilled workers but widen it among high-skilled workers. This finding is robust after controlling for international differences in gender norms and labor market institutions and allowing for country fixed effects. The findings corroborate with the claim that a longer parental leave period suppresses the career advancement of high-skilled women. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:18003&r=lab |
| By: | Bredtmann, Julia; Höckel, Lisa Sofie; Otten, Sebastian |
| Abstract: | The recent literature on intergenerational mobility has shown that attitudes and preferences are an important pathway for the intergenerational transmission of economic outcomes. We contribute to this literature by documenting that intergenerationally transmitted gender role attitudes also explain economic outcomes of individuals other than immediate relatives. Focusing on daughters-in-law, we examine whether the gender role attitudes of foreign-born mothers-in-law affect the fertility and labor supply decisions of native US women. Our results reveal that women's labor market participation is significantly positively related to the gender role attitudes in her mother-in-law's country of origin. Employing a new identification strategy, we show that this finding is due to the intergenerational transmission of gender roles rather than other unobservable characteristics of the mother-in-law's country of origin. These results suggest that the cultural values held in their source country do not only influence the behavior of immigrants and their descendants, but can also affect the labor force participation of native women. We do, however, not find any evidence that intergenerationally transmitted gender role attitudes affect the fertility behavior of native women. |
| Keywords: | intergenerational transmission,gender role attitudes,culture,immigration,fertility,female labor force participation |
| JEL: | J13 J15 J22 D1 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:735&r=lab |
| By: | Schaffner, Sandra; Siebert-Meyerhoff, Andrea |
| Abstract: | Fertility rates decline in most developed countries. This is especially true for Germany. Fertility is highly correlated with the skill level of women. The age at school enrolment and therefore the age at graduation depends on the month of birth. Children born before the cut-off date start school earlier than children born after the cut-off date. Therefore, there are also age differences at graduation. These differences can have an effect on the age at first birth and therefore the number of children. We analyze the effects of age at school enrolment on fertility in Germany. Our results suggest that women that are older at graduation are somewhat older at the age of first birth but do not have less children than younger women. Although, the effects on fertility are small we observe negative life-time earning effects of late enrolment for women in East-Germany. |
| Keywords: | fertility,education,regression discontinuity |
| JEL: | I21 J13 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:741&r=lab |
| By: | Axel H. Börsch-Supan; Klaus Härtl; Duarte N. Leite |
| Abstract: | In response to the challenges of increasing longevity, an obvious policy response is to gradually increase the statutory eligibility age for public pension benefits and to shut down pathways to early retirement such as special rules for women. This is, however, very unpopular. As an alternative, many countries have introduced “flexibility reforms” which allow combining part-time work and partial retirement. A key measure of these reforms is the abolishment of earnings tests. It is claimed that these reforms increase labor supply and therefore, also the sustainability of pension systems. We show that these claims may not be true in the circumstances of most European countries. To this end, we employ a life-cycle model of consumption and labor supply where the choices of labor force exit and benefit claiming age are endogenous and potentially separate. Earnings tests force workers to exit the labor market when claiming a pension. After abolishing the earnings test, workers can claim their benefits and can keep on working, potentially increasing labor supply. Our key result is that the difference between exit and claiming age strongly depends on the actuarial neutrality of the pension system and can become very large. Abolishing an earnings test as part of a “flexibility reform” may therefore create more labor supply but at the same time, reduce the average claiming age when adjustments remain less than actuarial, thereby worsening rather than improving the sustainability of public pension systems. |
| JEL: | D91 E17 E21 H55 J11 J22 J26 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24294&r=lab |
| By: | David A. Jaeger; Joakim Ruist; Jan Stuhler |
| Abstract: | A large literature exploits geographic variation in the concentration of immigrants to identify their impact on a variety of outcomes. To address the endogeneity of immigrants' location choices, the most commonly-used instrument interacts national inflows by country of origin with immigrants' past geographic distribution. We present evidence that estimates based on this "shift-share" instrument conflate the short- and long-run responses to immigration shocks. If the spatial distribution of immigrant inflows is stable over time, the instrument is likely to be correlated with ongoing responses to previous supply shocks. Estimates based on the conventional shift-share instrument are therefore unlikely to identify the short-run causal effect. We propose a "multiple instrumentation" procedure that isolates the spatial variation arising from changes in the country-of-origin composition at the national level and permits us to estimate separately the short- and long-run effects. Our results are a cautionary tale for a large body of empirical work, not just on immigration, that rely on shift-share instruments for causal inference. |
| JEL: | C36 J15 J21 J61 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24285&r=lab |
| By: | Daniele Vignoli (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Letizia Mencarini (Dondena Centre for Research on Social Dynamics and Public Policy, Università Commerciale Luigi Bocconi); Giammarco Alderotti (Sapenza, Università di Roma) |
| Abstract: | This article combines two apparently distinct strands of contemporary research on fertility: the literature on employment uncertainty and fertility and the literature on subjective well-being and fertility. We advance the hypothesis that the impact of term-limited work contracts and precarious jobs on fertility intentions is channeled by an individual’s level of subjective well-being. To test this hypothesis, we adopt a formal framework for causal inference and apply techniques of mediation analysis to data from two rounds of the European Social Survey (ESS 2004 and 2010). Our analysis clearly suggested that the impact of employment uncertainty on fertility intentions depended on the level of subjective well-being: the negative effect was found only when subjective well-being was relatively low (i.e. life satisfaction levels equal or below 6). Detailed results show that parents and younger individuals reduced their fertility intentions more than the childless and older individuals when experiencing employment uncertainty and facing low subjective well-being. We also found that in 2010 – while the economic crisis was underway – it was especially the deterioration in men’s position in the labor market that inhibited fertility planning. |
| Keywords: | Economic Uncertainty; Subjective Well-being; Fertility Intentions; Europe; Mediation Analysis; Causal Inference; Great Recession |
| JEL: | J13 J00 J21 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:fir:econom:wp2018_04&r=lab |
| By: | Osuna, Victoria |
| Abstract: | Over the last three decades, Spanish female labor force participation (LFP) has tremendously increased, particularly, that of married women. At the same time, the income tax structure, the fiscal treatment of families, policies to reconcile family and work, and the education distribution of married couples have substantially changed. By contrast, the gender wage gap has remained quite stable. In this paper the author investigates the relevance of these factors in accounting for the growth in Spanish married women labor force participation from 1994 to 2008. For that purpose, she uses Kaygusuz (Taxes and female labor supply, 2010) model of household labor market participation, and data from Eurostat to calibrate the model and evaluate its performance. The model successfully accounts for the rise in aggregate female labor force participation, and matches hours worked by males and females. The model is also able to replicate the pattern of female labor force participation by age and education. From this analysis we can conclude that changes in tax rates and in the education distribution are the main factors behind the increase in female LFP during the late nineties, while changes in child care costs and earning profiles are mainly responsible for the subsequent growth in the 2000s. |
| Keywords: | female labor force participation,gender wage gap,income tax,educational distribution,wage profiles,child care costs |
| JEL: | J11 J12 J13 J22 J31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:20186&r=lab |
| By: | Fackler, Daniel; Müller, Steffen; Stegmaier, Jens |
| Abstract: | Why does job displacement, e.g., following import competition, technological change, or economic downturns, result in permanent wage losses? The job displacement literature is silent on whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We therefore estimate losses in wages and firm wage premiums. Premiums are measured as firm effects from a two-way fixed-effects approach, as described in Abowd, Kramarz, and Margolis (1999). Using German administrative data, we find that wage losses are, on average, fully explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses in wages and premiums are minor for workers displaced from small plants and strongly increase with pre-displacement firm size, which provides an explanation for the large and persistent wage losses that have been found in previous studies mostly focusing on displacement from large employers. |
| Keywords: | job displacement,wages,firm size,firm rents |
| JEL: | J31 J63 J65 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:322017&r=lab |
| By: | Hamish Low (University Cambridge); Costas Meghir (Cowles Foundation, Yale University); Luigi Pistaferri (Stanford University, NBER, CEPR and SIEPR); Alessandra Voena (University of Chicago, NBER, CEPR and BREAD) |
| Abstract: | The 1996 PRWORA reform introduced time limits on the receipt of welfare in the United States. We use variation by state and across demographic groups to provide reduced form evidence showing that such limits led to a fall in welfare claims (partly due to \banking” benefits for future use), a rise in employment, and a decline in divorce rates. We then specify and estimate a life-cycle model of marriage, labor supply and divorce under limited commitment to better understand the mechanisms behind these behavioral responses, carry out counterfactual analysis with longer run impacts and evaluate the welfare effects of the program. Based on the model, which reproduces the reduced form estimates, we show that among low educated women, instead of relying on TANF, single mothers work more, more mothers remain married, some move to relying only on food stamps and, in ex-ante welfare terms, women are worse off. |
| Keywords: | Time limits, Welfare reform, Life-cycle, Marriage and divorce |
| JEL: | D91 H53 J12 J21 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:3021&r=lab |
| By: | Kofol, Chiara (ZEF, University of Bonn); Naghsh Nejad, Maryam (IZA) |
| Abstract: | The impact of hosting refugees on child labor in host countries is unclear. This paper estimates both the short and the long term consequences of hosting refugees fleeing from the genocides of Rwanda and Burundi in the Kagera region of Tanzania between 1991 and 2004. The study uses longitudinal data from the Kagera Health and Development Survey. Using the exogenous nature of refugee settlement in Kagera due to geographic and logistical reasons, we find the causal impact of hosting refugees on child labor and children's schooling outcomes. The results suggest that the impact of hosting refugees on children living in Kagera decreases child labor in the short run (between 1991 and 1994), but increases it in the longer run (1991–2004). The results are heterogeneous across gender and age. The study aims at understanding the mechanisms behind the variation in child labor outcome due to the forced migration shock exploring various channels. |
| Keywords: | forced migration, child labor, school attendance, human capital |
| JEL: | J13 O15 R23 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11242&r=lab |
| By: | Facchini, Giovanni (University of Nottingham); Liu, Maggie Y. (Smith College); Mayda, Anna Maria (Georgetown University); Zhou, Minghai (University of Nottingham) |
| Abstract: | We analyze the effect of China's integration into the world economy on workers in the country and show that one important channel of impact has been internal migration. Specifically, we study the changes in internal migration rates triggered by the reduction in trade policy uncertainty faced by Chinese exporters in the U.S. This reduction is characterized by plausibly exogenous variation across sectors, which we use to construct a local measure of treatment, at the level of a Chinese prefecture, following Bartik (1991). This allows us to estimate a difference-in-difference empirical specification based on variation across Chinese prefectures before and after 2001. We find that prefectures facing the average decline in trade policy uncertainty experience an 18 percent increase in their internal in-migration rate – this result is driven by migrants who are "non-hukou", skilled, and in their prime working age. Finally, in those prefectures, working hours of "native" unskilled workers significantly increase – while the employment rates of neither native workers nor internal migrants change. |
| Keywords: | hukou, immigration, internal migration, trade policy uncertainty |
| JEL: | F22 J61 O15 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11279&r=lab |
| By: | Antman, Francisca M. (University of Colorado, Boulder) |
| Abstract: | While scholars have long studied the economics of migration, increasing waves of international and regional migration around the world have placed greater focus on the varied impacts of migration in recent years. Critical to this line of research is an examination of the important role that women play in both sending and destination areas. This chapter addresses various aspects of the relationship between women and migration, including key ways in which non-migrant women are affected by migration, as well as how female migrants affect families and labor markets in both source and destination communities. Selection factors and determinants of female migration, as well as the gendered impacts of migrant networks, are also discussed. |
| Keywords: | migrant selection, women, left behind, gender, migration, networks |
| JEL: | F22 O15 R23 J16 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11282&r=lab |
| By: | Backes-Gellner, Uschi; Herz, Holger; Kosfeld, Michael; Oswald, Yvonne |
| Abstract: | Evidence suggests that acquiring human capital is related to better life outcomes, yet young peoples' decisions to invest in or stop acquiring human capital are still poorly understood. We investigate the role of time and reference-dependent preferences in such decisions. Using a data set that is unique in its combination of real-world observations on student outcomes and experimental data on economic preferences, we find that a low degree of long-run patience is a key determinant of dropping out of upper-secondary education. Further, for students who finish education we show that one month before termination of their program, present-biased students are less likely to have concrete continuation plans while loss averse students are more likely to have a definite job offer already. Our findings provide fresh evidence on students' decision-making about human capital acquisition and labor market transition with important implications for education and labor market policy. |
| Keywords: | dropout; economic preferences; education; Human Capital; job search |
| JEL: | D01 D03 D91 I21 J64 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12609&r=lab |
| By: | Alexei Abrahams (Princeton University) |
| Abstract: | To alleviate urban unemployment, the urban labor literature advocates facilitating labor flow from residential neighborhoods to commercial centers. This supply-side solution reflects the literature's pervasive assumption of robust labor demand. There are many contexts, however, particularly in the developing world, where labor demand is deficient. Local improvements to connectivity, we argue, will then struggle to stimulate employment. Conversely, local adverse shocks to connectivity will not exacerbate unemployment, since the preexisting stock of unemployed laborers will absorb the shocks distributionally. We demonstrate this latter claim with geospatial data from the West Bank, where the overall political milieu plausibly inhibits labor demand. We ï¬ nd the deployment of Israeli army checkpoints and roadblocks obstructed peri-urban Palestinian commuters from accessing commercial centers, causing employment losses that were offset by employment gains among their more centrally located competitors. The ï¬ nding casts doubt on the efficacy of connectivity initiatives to mitigate urban unemployment absent concomitant efforts to unshackle demand. |
| Keywords: | West Bank, Palestine, Israel, Urban unemployment, connectivity, MENA, distributional impacts |
| JEL: | O18 R40 J61 |
| URL: | http://d.repec.org/n?u=RePEc:pri:esocpu:8&r=lab |
| By: | Tyrowicz, Joanna (University of Warsaw); Van der Velde, Lucas (Warsaw University) |
| Abstract: | We explore data from all transition economies over nearly two decades, providing insights on the mechanisms behind labor force reallocation. We show that worker flows between jobs in different industries are rare relative to the demographic flows of youth entry and elderly exit. The same applies to the flows between state-owned enterprises and private firms. In fact, evidence suggest that changes in the demand for labor were accommodated mostly through demographic flows, with a smaller role left for job transitions. We also show that the speed of changing the ownership structure in the economy has driven exits to retirement, in particular the early exits. |
| Keywords: | hirings, separations, transition, worker flows, unemployment, retirement |
| JEL: | P2 P5 D2 J6 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11249&r=lab |
| By: | Carlsson, Magnus (Linnaeus University); Abrar Reshid, Abdulaziz (Linnaeus University); Rooth, Dan-Olof (Stockholm University) |
| Abstract: | The question of whether and how living in a deprived neighborhood affects the labor market outcomes of its residents has been a subject of great interest for both policy makers and researchers. Despite this interest, empirical evidence of causal neighborhood effects on labor market outcomes is scant, and causal evidence on the mechanisms involved is even more scant. The mechanism that this study investigates is neighborhood signaling effects. Specifically, we ask whether there is unequal treatment in hiring depending on whether a job applicant signals living in a bad (deprived) neighborhood or in a good (affluent) neighborhood. To this end, we conducted a field experiment where fictitious job applications were sent to employers with an advertised vacancy. Each job application was randomly assigned a residential address in either a bad or a good neighborhood. The measured outcome is the fraction of invitations for a job interview (the callback rate). We find no evidence of general neighborhood signaling effects. However, job applicants with a foreign background have callback rates that are 42 percent lower if they signal living in a bad neighborhood rather than in a good neighborhood. In addition, we find that applicants with commuting times longer than 90 minutes have lower callback rates, and this is unrelated to the neighborhood signaling effect. Apparently, employers view information about residential addresses as important for employment decisions. |
| Keywords: | neighborhood signaling effects, neighborhood stigma, commuting time, discrimination, field experiment, correspondence study |
| JEL: | C93 J15 J21 J71 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11284&r=lab |
| By: | Zeltzer, Dan (Tel Aviv University) |
| Abstract: | In this paper, I assess the extent to which the gender gap in physician earnings may be driven by physicians' preference for working with specialists of the same gender. By analyzing administrative data on 100 million Medicare patient referrals, I provide robust evidence that doctors refer more to specialists of their same gender, a tendency known as homophily. I propose a new measure of homophily that is invariant to differences between the genders in the propensity to refer or receive referrals. I show that biased referrals are predominantly driven by physicians' decisions rather than by endogenous sorting of physicians or patients or by gender differences in the labor supply. As 75% of doctors are men, estimates suggest biased referrals generate a 5% lower demand for female relative to male specialists, pointing to a positive externality for increased female participation in medicine. |
| Keywords: | networks, referrals, gender, physician markets |
| JEL: | I11 J16 L14 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11230&r=lab |
| By: | Grund, Christian (RWTH Aachen University); Minten, Axel (RWTH Aachen University); Toporova, Nevena (Technische Universität München) |
| Abstract: | We are investigating the relationship between individual and job-related characteristics and the motivation of temporary agency workers. To do so, we are using a unique dataset from one of Germany's largest temporary work agencies. For 3,000 temporary agency workers, a subjective motivation appraisal is provided by the respective direct manager within the hiring company. It is possible to observe a positive relationship between the decision on transition to regular employment and the motivation of temporary agency workers. Women in temporary agency work demonstrate a higher degree of motivation than men. However, in the case of men a clearer correlation can be observed between project duration and motivation. A change of hiring company with follow-up projects has a negative effect on the temporary agency worker's motivation. |
| Keywords: | temporary agency work, atypical employment relation, empirical study, motivation, work morale |
| JEL: | J5 J81 M5 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11229&r=lab |
| By: | Danzer, Alexander M. (Catholic University of Eichstätt-Ingolstadt); Dietz, Barbara (Institute for East and Southeast European Studies, Regensburg) |
| Abstract: | This paper investigates the economic and social determinants affecting the well-being of temporary migrants before, during and after the financial crisis. Exploiting unique panel data which cover migration spells from Tajikistan between 2001 and 2011, we find that migrants earn less but stay longer in the destination during the crisis; at the same time, they become more exposed to illegal work relations, harassment and deportation through the Russian authorities. Especially illegal employment has negative second order effects on wages. Despite the similarities in the demographics and jobs of migrant workers, we find substantial heterogeneity in how the financial crisis affects their well-being. Migrants who experience wage losses during the crisis rationally stop migrating. |
| Keywords: | migration, informal employment, deportation, harassment, financial crisis, well-being, Russia |
| JEL: | J15 I31 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11272&r=lab |
| By: | Giulia Faggio; Teresa Schlüter; Philipp vom Berge |
| Abstract: | We use the German government move from Bonn to Berlin in 1999 to test competing views about the impact of public employment on private sector activity in a local labor market. A relocated public sector job might create new jobs in an area as it increases demand for locally-produced goods and services, or crowd out existing jobs due to upward pressure on housing rents. Using employment data from a panel of a 50% sample of establishments across 190 Berlin postcodes, we apply a treatment intensity approach which takes the possibility of spillovers into account. Results indicate that the arrival of 100 public sector jobs into an area generates 55 additional jobs in the private sector. There is evidence of spillovers: relocations up to a distance of 1km from a postcode boundary increases employment in the private sector by 36 jobs. These effects are coming through job gains in the service sector, while manufacturing employment is not influenced by the relocation. |
| Keywords: | regional government policy, regional labor markets, job displacement, economic development |
| JEL: | R58 R23 J61 O1 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0229&r=lab |
| By: | Gordon B. Dahl; Anne C. Gielen |
| Abstract: | Does participation in a social assistance program by parents have spillovers on their children's own participation, future labor market attachment, and human capital investments? While intergenerational concerns have figured prominently in policy debates for decades, causal evidence is scarce due to nonrandom participation and data limitations. In this paper we exploit a 1993 policy reform in the Netherlands which tightened disability insurance (DI) criteria for existing claimants, and use rich panel data to link parents to children's long-run outcomes. The key to our regression discontinuity design is that the reform applied to younger cohorts, while older cohorts were exempted from the new rules. We find that children of parents who were pushed out of DI or had their benefits reduced are 11% less likely to participate in DI themselves, do not alter their use of other government safety net programs, and earn 2% more in the labor market as adults. The combination of reduced government transfers and increased tax revenue results in a fiscal gain of 5,900 euros per treated parent due to child spillovers by 2014. Moreover, children of treated parents complete an extra 0.12 years of schooling on average, an investment consistent with an anticipated future with less reliance on DI. Our findings have important implications for the evaluation of this and other policy reforms: ignoring parent-to-child spillovers understates the long-run cost savings of the Dutch reform by between 21 and 40% in present discounted value terms. |
| JEL: | H53 I38 J62 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24296&r=lab |