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on Labour Economics |
| By: | Kai-Uwe Müller; Michael Neumann; Katharina Wrohlich |
| Abstract: | The paper extends a static discrete-choice labor supply model by adding participation and hours constraints. We identify restrictions by survey information on the eligibility and search activities of individuals as well as actual and desired hours. This provides for a more robust identification of preferences and constraints. Both, preferences and restrictions are allowed to vary by and are related through observed and unobserved characteristics. We distinguish various restrictions mechanisms: labor demand rationing, working hours norms varying across occupations, and insufficient public childcare on the supply side of the market. The effect of these mechanisms is simulated by relaxing different constraints at a time. We apply the empirical frame- work to evaluate an in-work benefit for low-paid parents in the German institutional context. The benefit is supposed to increase work incentives for secondary earners. Based on the structural model we are able to disentangle behavioral reactions into the pure incentive effect and the limiting impact of constraints at the intensive and extensive margin. We find that the in-work benefit for parents substantially increases working hours of mothers of young children, especially when they have a low education. Simulating the effects of restrictions shows their substantial impact on employment of mothers with young children. |
| Keywords: | Labor supply, hours restrictions, involuntary unemployment, gender |
| JEL: | J22 J23 J16 J64 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1758&r=lab |
| By: | Bradley, Jake (University of Nottingham); Gottfries, Axel (University of Edinburgh) |
| Abstract: | We set up a model with on-the-job search in which firms infrequently post vacancies for which workers occasionally apply. The model nests the standard job ladder and stock-flow models as special cases while remaining analytically tractable and easy to estimate from standard panel data sets. Structurally estimating the model, the parameters are significantly different from the stock-flow or the job ladder model. Further, the estimated parameters governing workers search behavior are found to be consistent with recent survey evidence documented in Faberman et al. (2016). The search behavior implied by the standard job ladder model significantly understates the search option associated with employment (and thus underestimates the replacement ratio). Finally, the standard model is unable to generate the decline in the job finding rate and starting wage with duration of unemployment, both of which are present in our data. |
| Keywords: | on-the-job search, wage dispersion, wage posting, stock-flow |
| JEL: | J31 J64 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11767&r=lab |
| By: | Bijwaard, Govert (NIDI - Netherlands Interdisciplinary Demographic Institute); Schluter, Christian (University of Southampton) |
| Abstract: | Consider the duration of stay of migrants in a host country. We propose a statistical model of locally interdependent return hazards in order to examine whet- her interactions at the level of the neighbourhood are present and lead to social multipliers. To estimate this model we develop and study two complementary estimation strategies, demonstrate their good performance while standard non-spatial estimators are shown to be heavily biased. Using a unique large administrative panel dataset for the population of recent labour immigrants to the Netherlands, we quantify the local social multipliers in several factual and counterfactual experiments, and demonstrate that these are substantial. |
| Keywords: | interdependent hazards, local interaction, social multipliers, return migration |
| JEL: | C41 C10 C31 J61 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11780&r=lab |
| By: | Arni, Patrick (University of Bristol); Schiprowski, Amelie (IZA) |
| Abstract: | How effective are effort targets? This paper provides novel evidence on the effects of job search requirements on effort provision and labor market outcomes. Based on large-scale register data, we estimate the returns to required job search effort, instrumenting individual requirements with caseworker stringency. Identification is ensured by the conditional random assignment of job seekers to caseworkers. We find that the duration of un- and non- employment both decrease by 3% if the requirement increases by one monthly application. When instrumenting actual applications with caseworker stringency, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find that the effect of required effort decreases in the individual's voluntary effort. Finally, the requirement level causes small negative effects on job stability, reducing the duration of re- employment spells by 0.3% per required application. We find a zero effect on re-employment wages. |
| Keywords: | effort targets, job search behavior, unemployment insurance, incentives |
| JEL: | J64 J65 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11765&r=lab |
| By: | Pedro S. Martins |
| Abstract: | Employee representatives in firms are a potentially key but not yet studied source of the impact of unions and works councils. Their actions can shape multiple drivers of firm performance, including collective bargaining, strikes, and training. This paper examines the impact of union rep mandates by exploiting legal membership thresholds present in Portugal: for instance, while firms employing up to 49 union members are required to have one union rep, this increases to two (three) union reps for firms with 50 to 99 (100-199) union members. Drawing on matched employer-employee data on the unionised sector and regression discontinuity methods, we find that a one percentage point increase in the legal union rep/members ratio leads to an increase in firm performance of at least 7%. This result holds across multiple dimensions of firm performance and appears to be driven by increased training. However, we find no effects of union reps on firm-level wages, given the predominance of sectoral collective bargaining. |
| Keywords: | Firm Performance, Union Delegates, Collective Bargaining. |
| JEL: | J51 J31 L25 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:93&r=lab |
| By: | Bütikofer, Aline (Dept. of Economics, Norwegian School of Economics and Business Administration); Dalla-Zuanna, Antonio (Dept. of Economics, Norwegian School of Economics and Business Administration); Salvanes, Kjell G. (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | Do large economic shocks increase intergenerational earnings mobility through creating new economic opportunities? Alternatively, do they reduce mobility by reinforcing the links between generations? In this paper, we estimate how the Norwegian oil boom starting in the 1970s affected intergenerational mobility. We find that this resource shock increased intergenerational mobility for cohorts entering the labor market at the beginning of the oil boom in those labor markets most affected by the growing oil industry. In particular, we show that individuals born to poor families in oil-affected regions were more likely to move to the top of their cohort's earnings distribution. Importantly, we reveal that preexisting local differences in intergenerational mobility did not drive these findings. Instead, we show that changes in the returns to education offer the best explanation for geographic differences in intergenerational mobility following the oil boom. In addition, we find that intergenerational mobility was significantly higher in oil-affected labor markets across three generations and that the oil boom broke the earnings link between grandfathers and their grandsons. |
| Keywords: | Natural Resource Booms; International mobility |
| JEL: | J62 |
| Date: | 2018–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2018_019&r=lab |
| By: | Edo, Anthony (CEPII, Paris); Rapoport, Hillel (Paris School of Economics) |
| Abstract: | This paper exploits the non-linearity in the level of minimum wages across U.S. States created by the coexistence of federal and state regulations to investigate the labor market effects of immigration. We find that the impact of immigration on the wages and employment of native workers within a given state-skill cell is more negative in States with low minimum wages and for workers with low education and experience. That is, the minimum wage tends to protect native workers from competition induced by low-skill immigration. The results are robust to instrumenting immigration and state effective minimum wages, and to implementing a difference-in-differences approach comparing States where effective minimum wages are fully determined by the federal minimum wage to States where this is never the case. |
| Keywords: | immigration, minimum wages, labor markets |
| JEL: | F22 J61 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11778&r=lab |
| By: | Priyanka Chakraborty (Southern Methodist University); Danila Serra (Southern Methodist University) |
| Abstract: | Top leadership positions involve the necessity of making decisions, like promotions, demotions and dismissals, which please some employees and upset others. We examine whether gender differences in aversion to the possibility of worker backlash may contribute to the gender leadership gap. We address this question through a novel laboratory experiment that simulates corporate decision-making. We find that: 1) women are significantly less likely to self-select into a managerial position when facing the possibility of receiving angry messages from employees; 2) once in a leadership position, women perform no differently than men; 3) male and female managers have different leadership styles; and 4) female managers receive significantly more angry messages from employees. |
| Keywords: | Gender differences, leadership, experiment. |
| JEL: | C92 D91 J16 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:smu:ecowpa:1807&r=lab |
| By: | Andrea Morrison; Sergio Petralia; Dario Diodato |
| Abstract: | More than 30 million people migrated to the US between the 1850s and 1920s. In the order of thousands became inventors and patentees. Drawing on an original dataset of immigrant inventors to the US, we assess the city-level impact of immigrants patenting and their potential crowding out effects on US native inventors. Our study contributes to the different strands of literature in economics, innovation studies and economic geography on the role of immigrants as carriers of knowledge. Our results show that immigrants? patenting is positively associated with total patenting. We find also that immigrant inventors crowd-in US inventors. The growth in US inventors? productivity can be explained also in terms of knowledge spill-overs generate by immigrants. Our findings are robust to several checks and to the implementation of an instrumental variable strategy. |
| Keywords: | immigration, innovation, knowledge spill-over, patent, age of mass migration, US |
| JEL: | F22 J61 O31 R3 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1835&r=lab |
| By: | Cords, Dario; Prettner, Klaus |
| Abstract: | Will low-skilled workers be replaced by automation? To answer this question, we set up a search and matching model that features two skill types of workers and includes automation capital as an additional production factor. Automation capital is a perfect substitute for low-skilled workers and an imperfect substitute for high-skilled workers. Using this type of model, we show that the accumulation of automation capital decreases the labor market tightness in the low-skilled labor market and increases the labor market tightness in the high-skilled labor market. This leads to a rising unemployment rate of low-skilled workers and a falling unemployment rate of high-skilled workers. In addition, automation leads to falling wages of low-skilled workers and rising wages of high-skilled workers. |
| Keywords: | unemployment,automation,search and matching model,technological progress,inequality,skill premium |
| JEL: | C78 J63 J64 O33 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:192018&r=lab |
| By: | Elizabeth Caucutt (Western University Canada); Nezih Guner (CEMFI); Christopher Rauh (University of Cambridge, INET Institute) |
| Abstract: | The black-white differences in marriages in the US are striking. While 83% of white women between ages 25 and 54 were ever married in 2006, only 56% of black women were: a gap of 27 percentage points. Wilson (1987) suggests that the lack of marriageable black men due to incarceration and unemployment is responsible for low marriage rates among the black population. In this paper, we take a dynamic look at the Wilson Hypothesis. We argue that the current incarceration policies and labor market prospects make black men riskier spouses than white men. They are not only more likely to be, but also to become, unemployed or incarcerated than their white counterparts. We develop an equilibrium search model of marriage, divorce and labor supply that takes into account the transitions between employment, unemployment and prison for individuals by race, education, and gender. We estimate model parameters to be consistent with key statistics of the US economy. We then investigate how much of the racial divide in marriage is due to differences in the riskiness of potential spouses. We find that differences in incarceration and employment dynamics between black and white men can account for half of the existing black-white marriage gap in the data. |
| Keywords: | Marriage, race, incarceration, Inequality, unemployment |
| JEL: | J12 J21 J64 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2018-074&r=lab |
| By: | Paul Pelz; Steven Poelhekke |
| Abstract: | We analyse the local e ect 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: | L1 L72 O12 O13 Q30 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:214&r=lab |
| By: | Kyeongkuk Kim (University of Hawaii at Manoa Ministry of Strategy and Finance, Republic of Korea); Sang-Hyop Lee (University of Hawaii at Manoa); Timothy J Halliday (University of Hawaii at Manoa and IZA) |
| Abstract: | We investigate the effects of health shocks on labor supply among Korean married couples. Consistent with previous work, we find that own health shocks have substantial effects on own labor supply at the extensive margin. We also find evidence that spousal health shocks affect own labor supply, particularly, for wives. Specifically, we find that the onset of chronic illness for the husband reduces the probability of the wife exiting the labor force by 9.2 percentage points. This is the added worker effect (AWE). We find larger effects of spousal health shocks for chronic conditions than for acute conditions and accidents possibly because chronic conditions are associated with a smaller need for home care than acute conditions. Finally, we find stronger evidence of the AWE for households with co-residing adult children and for poorer household. |
| Keywords: | health, labor supply, couples |
| JEL: | I1 J14 J22 J26 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201812&r=lab |
| By: | Pikos, Anna Katharina |
| Abstract: | This paper analyzes the relationship between work-related mental health of the German working population and unemployment on the occupation-region level measured one year before the outcome. Rising unemployment is significantly associated with a higher risk for emotional strain, emotional exhaustion, absenteeism, and presenteeism among employed individuals. Occupation specific unemployment drives this relationship, while the regional dimension is less important. The relationship is driven by individuals with own past unemployment experience. |
| Keywords: | work-related mental health; unemployment; emotional exhaustion; emotional strain |
| JEL: | I10 J64 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:han:dpaper:dp-639&r=lab |
| By: | Isabelle CHORT; Philippe DE VREYER; Thomas ZUBER |
| Abstract: | This study explores internal migration patterns of men and women using individual panel data from a nationally representative survey collected in two waves, in 2006-2007 and 2010-2012, in Senegal. The data used are unique in that they contain the GPS coordinates of individuals' location in both waves. We are thus able to precisely calculate distances and map individual moves, avoiding limitations and constraints of migration definitions based on administrative units. Our results reveal major differences across gender. Women are found to be more likely to migrate than men. However, they move less far and are more likely to migrate to rural areas, especially when originating from rural areas. Education is found to increase the likelihood of migration to urban destinations, especially for women. An analysis of the motives for migrating confirms the existence of gendered migration patterns, as female mobility is mostly linked to marriage while labor mobility is frequently observed for men. |
| Keywords: | Internal Migration ; Gender Inequalities ; Rural-Urban Migration ; Senegal |
| JEL: | J16 O15 O18 R23 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:tac:wpaper:2018-2019_1&r=lab |
| By: | Janice Compton (University of Manitoba); Robert A. Pollak (Washington University in St. Louis) |
| Abstract: | Individual life expectancies are easy to calculate from individual mortality rates and provide useful summary measures for individuals making retirement decisions and for policy makers. For couples, analogous measures are the expected years both spouses will be alive (joint life expectancy) and the expected years the surviving spouse will spend as a widow or widower (survivor life expectancy). Using individual life expectancies to calculate summary measures for couples yields substantially misleading results because the mortality distribution of husbands and wives overlap substantially. To illustrate, consider a wife aged 60 whose husband is 62. In 2010, the wife's life expectancy was 24.5 years and her husband's 20.2 years. The couple's joint life expectancy, however, is only 17.7 years. Although her life expectancy is four years longer than his, if she is widowed (probability: .62), her survivor life expectancy is 12.5 years; if the husband is a widower (probability: .38), his survivor life expectancy is 9.5 years. We calculate trends and patterns in joint and survivor life expectancy in each census year from 1930 to 2010. Using 2010 data, we also investigate differences in joint and survivor life expectancy by race and ethnicity and by education. |
| Keywords: | mortality, retirement |
| JEL: | J10 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2018-072&r=lab |
| By: | Mertens, Matthias |
| Abstract: | This article examines how trade shocks shape labour market imperfections that create market power in labour markets and prevent an efficient allocation of labour. I develop a framework for measuring such labour market distortions in monetary terms and document large degrees of those distortions in Germany's manufacturing sector. Import competition can only exert labour market disciplining effects when firms rather than workers have labour market power. Otherwise, export demand and import competition shocks tend to fortify existing distortions by amplifying labour market power structures. This diminishes the gains from trade compared to a model with perfectly competitive labour markets. |
| Keywords: | international trade,market power,labour markets,allocative efficiency |
| JEL: | D24 F14 F16 J50 L13 L60 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:182018&r=lab |