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on Labour Economics |
| By: | Regina T. Riphahn; Salwan Saif |
| Abstract: | Naturalization may be a relevant policy instrument affecting immigrant integration in host-country labor markets. We study the effect of naturalization on labor market outcomes of immigrants in Germany. We apply recent survey data and exploit a reform of naturalization rules in an instrumental variable estimation. In our sample of recent immigrants, linear regression yields positive correlations between naturalization and beneficial labor market outcomes. Once we account for the endogeneity of naturalization most coefficients decline in magnitude and lose statistical significance: male immigrants' labor market outcomes do not benefit significantly from naturalization. Naturalization reduces the risks of unemployment and welfare dependence for female immigrants. For males and females, the propensity to hold a permanent contract increase as a consequence of naturalization. The results are robust to modifications of samples and the instrument. |
| Keywords: | citizenship, migration, naturalization, labor market outcomes, instrumental variables |
| JEL: | J61 J15 C26 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7217&r=lab |
| By: | John J. Conlon (Harvard University); Laura Pilossoph (Federal Reserve Bank of New York); Matthew Wiswall (Arizona State University); Basit Zafar (Federal Reserve Bank of New York) |
| Abstract: | We investigate the role of information frictions in the US labor market using a new nationally representative panel dataset on individuals’ labor market expectations and real- izations. We find that expectations about future job offers are, on average, highly predictive of actual outcomes. Despite their predictive power, however, deviations of ex post realizations from ex ante expectations are often sizable. The panel aspect of the data allows us to study how individuals update their labor market expectations in response to such shocks. We find a strong response: an individual who receives a job offer one dollar above her expectation subsequently adjusts her expectations upward by $0.47. The updating patterns we document are, on the whole, inconsistent with Bayesian updating. We embed the empirical evidence on expectations and learning into a model of search on- and off- the job with learning, and show that it is far better able to fit the data on reservation wages relative to a model that assumes complete information. The estimated model indicates that workers would have lower employment transition responses to changes in the value of unemployment through higher unemployment benefits than in a complete information model, suggesting that assuming workers have complete information can bias estimates of the predictions of government interventions. We use the framework to gauge the welfare costs of information frictions which arise because individuals make uninformed job acceptance decisions and find that the costs due to information frictions are sizable, but are largely mitigated by the presence of learning. |
| Keywords: | expectations, learning, labor search, optimism |
| JEL: | D83 D84 J64 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2018-068&r=lab |
| By: | Andrew Phiri (Department of Economics, Nelson Mandela University) |
| Abstract: | The purpose of this study is to examine whether we can identify a Philips curve fit for the Kingdom of Swaziland as a low middle income Sub-Saharan Africa monarchy using data collected between 1991 and 2016. In our approach we rely on the recently introduced nonlinear autoregressive distributive lag (N-ARDL) model to a variety of Phillips curve specifications. For robustness sake, we further employ three filters (one-sided HP, two-sided HP and Corbae-Oularis filters) to extract the gap variables necessary for empirical analysis. Our findings point to a linear, short-run traditional Philips curve whereas we find strong support for concave shaped unemployment-gap and output –gap based Phillips curve specifications. Given the specific form of concavity discovered in the Phillips curves, the low inflation rate experienced over the last couple of decades can be attributed to a worsening labour and goods markets. Moreover, our evidence also cautions Swazi policymakers of ‘overheating’ of the economy during economic booms in which stabilization tools are required to implemented in such instances. Given the overall absence of empirical studies establishing the Philips curve for the Swazi economy our study makes a valid contribution to the literature. |
| Keywords: | Inflation, Unemployment, Phillips curve, Central Bank of Swaziland (CBS), Hodrick-Prescott (HP) filter, Corbae-Oularis (C-O) filter, Emerging Economies. |
| JEL: | C22 C32 C52 E24 E31 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:mnd:wpaper:1832&r=lab |
| By: | Boer Cui; Genevieve Boisjoly; Ahmed El-Geneidy,; David Levinson (TransportLab, School of Civil Engineering, University of Sydney) |
| Abstract: | Inequality in transport provision is an area of growing concern among transport professionals, as it results in low-income individuals travelling at lower speeds while covering smaller distances. Accessibility, the ease of reaching destinations, may hold the key in correcting these inequalities through providing a means to evaluate land use and transport interventions. This article examines the relationship between accessibility and commuting duration for low-income individuals, compared to the general population, in three major Canadian metropolitan regions, Toronto, Montreal, and Vancouver using multilevel mixed effects statistical models for car and public transport commuters separately. Accessibility measures are generated for jobs and workers both at the origin (home) and the destination (place of work) to account for the impact of competing labor and firms. Our models show that the impacts of accessibility on commuting duration are present and stronger for low-income individuals than for the general population, and the differences in impact are more visible for public transport commuters. The results suggest that low-income individuals have more to gain (in terms of reduced commute time) from increased accessibility to low-income jobs at the origin and to workers at the destination. Similarly, they also have more to lose from increased accessibility to low-income workers at the origin and to low- income jobs at the destination, which are proxies for increased competition. Policies targeting improvements in accessibility to jobs, especially low-income ones, by car and public transport while managing the presence of competition can serve to bridge the inequality gap that exists in commuting behavior. |
| Keywords: | accessibility, journey-to-work, equity |
| JEL: | R40 R20 D63 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:accessequityjourneytowork&r=lab |
| By: | Paul Pelzl (Vrije Universiteit Amsterdam); Steven (S.) Poelhekke (Vrije Universiteit Amsterdam, De Nederlandsche Bank) |
| Abstract: | We analyse the local effect of exogenous shocks to the value of mineral deposits at the district level in Indonesia using a panel of manufacturing plants. To the best of our knowledge, we are the first to model and estimate the effect of heterogeneity in natural resource extraction methods. We find that in areas where mineral extraction is relatively capital-intensive, mining booms cause virtually no upward pressure on manufacturing earnings per worker, and both producers of traded and local goods benefit from mining booms in terms of employment. In contrast, labour-intensive mining booms drive up local manufacturing wages such that producers of traded goods reduce employment. This source of heterogeneity helps to explain the mixed evidence for `Dutch disease' effects in the literature. In addition, we find no evidence that fiscal revenue sharing between sub-national districts leads to any spillovers. |
| Keywords: | Dutch disease; natural resources; mining; labour intensity; Indonesia |
| JEL: | L16 L72 O12 O13 Q30 |
| Date: | 2018–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20180073&r=lab |
| By: | Anna Rosso (University of Milan and Centro Studi Luca d'Agliano) |
| Abstract: | In this paper, I use a unique individual-level pre-migration labour market dataset for Poland, which provides also emigrant final destination, to examine emigrant selection into two major destination countries, the United Kingdom and Germany. Specifically, within a simple theoretical framework, I compare pre-migration observable and unobservable characteristics of emigrants with those of non-emigrants in Poland and test for selection by estimating skill price differences between Poland and the destination based on detailed labour market data for all three countries. I contribute to the migrant selection literature by providing additional evidence on how migrants react to both labour market differences and different migration policies across countries. |
| Keywords: | International migration, selection, skill prices, EU enlargement, inequality |
| JEL: | F22 J61 O15 D33 |
| Date: | 2018–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:440&r=lab |
| By: | Cici, Gjergji; Kempf, Alexander; Peitzmeier, Claudia |
| Abstract: | Firms' competitive advantages are unsustainable when competitors poach their employees away to learn about their organization processes. We document inter-firm knowledge spillovers through such personnel moves in the mutual fund industry. Almost two thirds of the competitive advantage of the originating fund family spills over to the recipient family. This effect intensifies when the switching manager has amassed more organizational knowledge at the originating family. Performance deterioration at the originating family suggests erosion of its competitive advantage, which intensifies when more money chases the newly-transferred knowledge at the recipient family. This implies wealth transfers across investors in respective families. |
| Keywords: | organization capital,knowledge spillovers,mutual funds,learning-by-hiring |
| JEL: | D86 G23 K12 K31 M5 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfrwps:1804&r=lab |
| By: | Chakraborty, Kamalika; Chakraborty, Bidisha |
| Abstract: | This paper builds an overlapping generations household economy model where child labour is present. We argue that the degree of parental altruism is determined by the level of schooling of the parent. A more educated parent has more willingness to invest in human capital formation of child. These differences in preferences of parent towards offspring’s schooling bear significant effects on the long run dynamics of schooling. In this context, we study the efficacy of child labour ban vis-a-vis education subsidy in enhancing schooling and reducing child labour. In an extension of the basic model, we also study the dynamics of schooling in the presence of learning by doing effect in unskilled work. |
| Keywords: | child labour, schooling, human capital, child labour ban, education subsidy |
| JEL: | I21 J22 J24 J82 |
| Date: | 2018–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89229&r=lab |
| By: | Drivas, Kyriakos; Economidou, Claire; Karamanis, Dimitris; Sanders, Mark |
| Abstract: | This paper studies the drivers of highly skilled migrants across space as well as their impact on local innovation activity. We focus on patent inventors, a specific typology of skilled and innovative individuals who are deeply involved in the production of innovation and are important vehicle of knowledge circulation. Employing patent data to track their moves, we use a gravity model to examine whether geographic, technological and cultural proximities between countries and country level factors and policies shape the flows of these talented individuals. As a comparison, in the same framework, we also analyze the flows of non-inventor migrants. Our evidence shows that proximity matters for migration. Gravity emerges everywhere; in the mobility of inventor and non-inventor migrant workers; the former, however, are less geographically restricted. Similarity in technological production structure between countries is the main driver of inventor moves - especially for inventors from the most innovative countries, whereas cultural proximity matters more for non-inventor migrants. Attractive country features are the quality of institutions and job opportunities at the destination as well as trade linkages between origin and destination country. Finally, the knowledge and skills that move with the inventors have an important positive impact on local innovation production. |
| Keywords: | inventor mobility, patents, migration, gravity, proximity |
| JEL: | J61 O31 O33 O52 |
| Date: | 2018–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88883&r=lab |
| By: | Katz, Ori |
| Abstract: | This paper estimates the impact of railroads in the United States between 1850 and 1910 on economic development, fertility, and human capital. A novel identification strategy, which relies on a dynamic instrument, allows me to control for unobservables using county fixed effects. I find that railroads shifted the distribution of occupations and industries, had a large positive effect on human capital levels, and a large negative effect on fertility rates. Further analysis suggests that the impact of railroads was larger in counties that were initially more developed. I examine possible mechanisms that drive the effects and lead to this heterogeneity. |
| Keywords: | Railroads, Fertility, Human Capital, Industrialization, Development, Transportation, Economic Growth, Great Divergence, Demographic Transition |
| JEL: | J11 N11 N71 O1 O14 O18 |
| Date: | 2018–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88869&r=lab |