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on Labour Economics |
| By: | Aepli, Manuel (Swiss Federal Institute for Vocational Education and Training); Kuhn, Andreas (Swiss Federal Institute for Vocational Education and Training) |
| Abstract: | In this paper, we study whether Swiss employers substitute between training apprentices and hiring cross-border workers. Because both training apprentices and hiring skilled workers are costly for firms, we hypothesize that (easier) access to cross-border workers will lead some employers to substitute away from training their own workers. We account for potential endogeneity issues by instrumenting a firm’s share of cross-border workers using a firm’s distance to the national border and therefore its possibility to fall back on cross-border workers to satisfy its labor demand. We find that both OLS and 2SLS estimates are negative across a wide range of alternative specifications, suggesting that firms substitute between training and hiring workers when the supply of skilled workers is higher. Our preferred 2SLS estimate implies that the increase in firms’ share of crossborder workers within our observation period, from 1995 to 2008, led to about 3,500 fewer apprenticeship positions (equal to about 2% of the total number of apprentice positions). |
| Keywords: | immigration, cross-border workers, firm behaviour, labor demand, substitution effects, apprenticeship training |
| JEL: | D22 J23 J61 M53 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12479&r=all |
| By: | Margaryan, Shushanik (University of Hamburg); Saniter, Nils (Federal Ministry for Economic Affairs and Energy (BMWi)); Schumann, Mathias (University of Hamburg); Siedler, Thomas (University of Hamburg) |
| Abstract: | This paper studies the causal effect of student internship experience in firms on earnings later in life. We use mandatory firm internships at German universities as an instrument for doing a firm internship while attending university. Employing longitudinal data from graduate surveys, we find positive and significant earnings returns of about 6% in both OLS and IV regressions. The positive returns are particularly pronounced for individuals and areas of study that are characterized by a weak labor market orientation. The empirical findings show that graduates who completed a firm internship face a lower risk of unemployment during the first year of their careers, suggesting a smoother transition to the labor market. |
| Keywords: | internships, skill development, higher education, labor market returns, instrumental variable |
| JEL: | I23 J01 J31 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12478&r=all |
| By: | Alacevich, Caterina (Pompeu Fabra University); Nicodemo, Catia (University of Oxford) |
| Abstract: | There is growing evidence that foreign-born workers are over represented in physically demanding and dangerous jobs with relatively higher injury hazard rates. Given this pattern, do increasing inflows of foreign-born workers alleviate native workers' exposure to injuries? This paper provides evidence of the effects of immigration on the incidence and severity of workrelated accidents. We combine administrative data on work-place accidents in Italy with the Labour Force Survey from 2009 to 2017. Our approach exploits spatial and temporal variation in the distribution of foreign-born residents across provinces. Using province fixed-effects and an instrumental variable specification based on historical settlements of immigrants, we show that inflows of foreign-born residents drive reductions in the injury rate, paid sick leave, and severity of impairment for natives. Next, we investigate potential underlying mechanisms that could drive this effect, such as increased unemployment and selection of the workforce, and the sorting of native workers into less physically demanding jobs. Our results rule out that decreased injuries are driven by higher native unemployment. We find that employment rates are positively associated with immigration, in particular for workers with higher education. While not statistically significant at conventional levels, we also find that average occupational physical intensity for natives is lower in provinces that receive larger foreign-born inflows. |
| Keywords: | immigration, labour-market flexibility, work-related injuries, health |
| JEL: | J61 J28 I1 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12510&r=all |
| By: | Eichhorst, Werner (IZA); Kalleberg, Arne (University of North Carolina, Chapel Hill); Portela de Souza, André (Sao Paulo School of Economics); Visser, Jelle (University of Amsterdam) |
| Abstract: | The world of work is in constant change. Demographic shifts, technological innovation, institutional reforms and global economic integration affect the way people work. Technological innovations have a major impact on occupations and industries, changing the ways economies in different world regions, in both developed and developing countries, work along with new division of labour that are facilitated by global economic integration. This paper is based on the joint work within the International Panel on Social Progress. It highlights three main areas of attention: a) skill formation, d) the challenges to collective bargaining, and e) social protection and labour market policies. Based on an assessment of the existing evidence, the paper suggests some policy principles and concrete policy options that might further those objectives, not ignoring some tensions that might exist between flexibility and security in the different labour markets. The ultimate direction of reforms in line with an idea of social progress lies in institutional arrangements that facilitate the reconciliation of flexibility and productivity with access to decent jobs and social protection. We argue that distinct policy options are available that can be implemented more globally in order to achieve these goals simultaneously. |
| Keywords: | future of work, industrial relations, skill formation, social protection, non-standard work |
| JEL: | J21 J24 J52 J81 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12482&r=all |
| By: | Choudhury, Agnitra Roy (Auburn University); Polachek, Solomon (Binghamton University, New York) |
| Abstract: | Raising a new-born child involves not only financial resources, but also time investment from the parents. A time constraint can affect important decisions made by parents at the early stages of an infant's life. One form of investment that is particularly important is vaccinating an infant. We analyze the impact of time constraints on immunization of infants on time. To establish a causal relationship, we exploit California's implementation of Paid Parental Leave Program as a natural experiment. Using a nationally representative dataset from the National Immunization Survey, we find evidence that the policy reduced late vaccinations for children born to parents in California after the policy was implemented. We test for heterogeneous effects of the policy on different subgroups in the population. We find the policy had a stronger impact on families that are below the poverty line. We conduct a series of falsification tests and robustness checks to test the validity of the results. In addition, our results are robust to several placebo tests. |
| Keywords: | vaccination, paid parental leave, difference-in-difference, synthetic control method |
| JEL: | D04 I12 I18 J18 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12483&r=all |
| By: | Stephan Klasen |
| Abstract: | This survey argues that after decades of continuous progress in reducing gender inequality in developing and developed countries, since about 2000, there has been an unexpected stagnation and regress in many dimensions of gender inequality in many parts of the world. This is most visible in labor markets, but also visible across a range of dimensions of gender inequality. After documenting these developments, the paper suggests causes for this change before suggesting policies to tackle remaining gender inequalities more effectively. |
| Keywords: | gender inequality, health, education, labor markets, developing countries. |
| JEL: | J16 J71 O15 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:263&r=all |
| By: | Simpson, Nicole B. (Colgate University); Sparber, Chad (Colgate University) |
| Abstract: | The U.S. is the largest source country of remittances with an outflow of more than $70 billion estimated for 2016 (according to data from the World Bank). This paper is the first to use Current Population Survey (CPS) data to estimate the determinants of remittances originating from the United States for a diverse set of approximately 3,800 households with at least one foreign-born worker. We employ a gravity model examining the role of various push, pull, and distance factors. Most notably, higher household earnings push monetary transfers abroad: We estimate an average earnings elasticity in the range of 0.20-0.30. Remittances are more responsive to earnings in households with more adult women relative to men. |
| Keywords: | immigration, remittances |
| JEL: | F24 J61 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12480&r=all |
| By: | Dolan, Paul (London School of Economics); Lordan, Grace (London School of Economics) |
| Abstract: | We examine how intergenerational mobility affects subjective wellbeing (SWB) using data from the British Cohort Study. Our SWB measures encapsulates both life satisfaction and mental health, and we consider both relative and absolute movements in income. We find that relative income mobility is a significant predictor of life satisfaction and mental health, whether people move upward or downward. For absolute income, mobility is only a consistent predictor of SWB and mental health outcomes if the person moves downwards, and in this case the impact is far larger than relative mobility. For both relative and income mobility downward movements affect SWB to a greater extent than upward movements, consistent with notions of loss aversion. Notably, we find that social class mobility does not affect SWB. We present evidence that the significant relative and absolute mobility effects we find operate partially through financial perceptions and consumption changes which can occur because of income mobility. |
| Keywords: | income mobility, relative income, social class mobility, loss aversion, intergenerational mobility, life satisfaction, SWB, subjective wellbeing, mental health |
| JEL: | D31 D63 I1 J60 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12519&r=all |
| By: | Fos, Vyacheslav; Hamdi, Naser; Kalda, Ankit; Nickerson, Jordan |
| Abstract: | This paper shows that the introduction of the "gig-economy" changes the way employees respond to job loss. Using a comprehensive set of Uber product launch dates and employee-level data on job separations, we show that laid-off employees with access to Uber are less likely to apply for UI benefits, rely less on household debt, and experience fewer delinquencies. Our empirical strategy is based on a triple difference-in-difference empirical model, comparing the difference in outcome variables 1) pre- and post-layoff, 2) before and after Uber enters a market, and 3) between workers with and without the ability to participate on the ride-sharing platform (car-owners inferred from auto credit histories). In support of our identification strategy, we find no apparent pre-existing difference in outcomes in the months leading up to Uber's entry into a market. Moreover, the effects are severely attenuated for workers with an auto lease, for whom the viability of participating on the ride-sharing platform is significantly reduced. Overall, our findings show that the introduction Uber had a profound effect on labor markets. |
| Keywords: | credit delinquencies; gig-economy; Household Debt; labor markets; Unemployment insurance |
| JEL: | D10 E24 H53 J23 J65 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13885&r=all |
| By: | Tommaso Ciarli (SPRU, Science Policy Research Unit, University of Sussex. UK); Mattia Di Ubaldo (Department of Economics, University of Sussex, UK); Maria Savona (SPRU, Science Policy Research Unit, University of Sussex, UK) |
| Abstract: | The paper adds to the literature on innovation and employment by looking at the relationship between R&D investments and the rise of alternative work arrangements, particularly selfemployment (SE). A literature review on the determinants of the emergence of non-standard work, alternative work arrangements and self-employment if offered first. The contributions that have looked at SE in relation to innovation strategies is surprisingly limited. General trends of SE in Europe are considered. The empirical contribution is focused on the analysis of local labour markets in the UK (Travel-To-Work-Areas, TTWAs), where their initial concentration of routinized and non-routinized jobs is considered. The probability that an individual shifts from paid employment to either unemployment or self-employment over the period 2001-13, as linked to changes in R&D investments in the TTWA is empirically accounted for. Results show that overall R&D has negligible effects on the probability of workers to become selfemployed. R&D increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinised and nonroutinised workers. Also, a non-negligible increase in the probability that a routinized worker becomes SE as a result of R&D increase is found in low routinised local labour markets, but not in highly routinised areas. The paper sheds new lights on the effect of R&D on employment and self-employment in areas with different degrees of routinization, and adds to the discussion on the more general raise of alternative work arrangements in Europe by disentangling the characteristics of self-employment as resulting from R&D investments. |
| Keywords: | R&D, employment, unemployment, self-employment, routinized local labour markets |
| JEL: | J6 O3 O32 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2019-17&r=all |
| By: | Daniel Baumgarten; Sybille Lehwald |
| Abstract: | We analyze the effect of the increase in trade exposure induced by the rise of China and the transformation of Eastern Europe on collective bargaining coverage of German plants in the period 1996–2008. We exploit cross-industry variation in trade exposure and use trade flows of other high-income countries as instruments for German trade exposure. We find that increased import exposure has led to an increase in the probability of German plants leaving industry-wide bargaining agreements, accounting for about one fifth of the overall decline in the German manufacturing sector. The effect is most pronounced for small and medium-sized plants. |
| Keywords: | international trade, import competition, collective bargaining |
| JEL: | F16 J51 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7754&r=all |
| By: | BOUSSELIN Audrey |
| Abstract: | In most OECD countries, subsidised childcare is a key instrument to support maternal employment. Using a large reform implemented in Luxembourg in 2009, I study the effect of expanding access to subsidised childcare on childcare and employment decisions of women in a context where childcare is universal and heavily subsidised, but bound by capacity constraints. The identification relies on temporal variation across child age groups. The results show that, in response to the reform, the employment rate of mothers increased by 4-7 percentage points and their hours of work by around 3 hours per week. Studying heterogeneous effects reveals a differential impact of the reform for more vulnerable mothers. Parents whose youngest child is under the age of 3 are found to use more daycare services, for longer hours, while the use of informal care remains unchanged. These results suggest that there is no crowding out effect of the new policy. |
| Keywords: | Childcare; family policy; maternal employment |
| JEL: | J13 J18 J22 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2019-11&r=all |
| By: | John T. Addison; Paulino Teixeira; Philipp Grunau; Lutz Bellmann |
| Abstract: | Using subjective information provided by manager respondents on the stance taken by the works council in company decision making, this paper investigates the association between a measure of works council dissonance or disaffection and plant closings in Germany, 2006-2015. The potential effects of worker representation on plant survivability have been little examined in the firm performance literature because of inadequate information on plant closings on the one hand and having to assume homogeneity of what are undoubtedly heterogeneous worker representation agencies on the other. Our use of two datasets serves to identify failed establishments, while the critical issue of heterogeneity is tackled via manager perceptions of works council disaffection or otherwise. The heterogeneity issue is also addressed by considering the wider collective bargaining framework within which works councils are embedded, and also by allowing for works council learning. It is reported that works council dissonance is positively associated with plant closings, although this association is not found for establishments that are covered by sectoral agreements. Taken in conjunction, both findings are consistent with the literature on the mitigation of rent seeking behavior. Less consistent with the recent empirical literature, however, is the association between plant closings and dissonance over time, that is, from the point at which works council dissonance is first observed. Although the coefficient estimate for dissonance is declining with the length of the observation window, it remains stubbornly positive and highly statistically significant. Finally, there is evidence that establishments with dissonant works councils are associated with a much higher probability of transitioning from no collective bargaining to sectoral bargaining coverage over the sample period than their counterparts with more consensual works councils. |
| Keywords: | dissonance, works councils, plant closings, collective bargaining regime, rent seeking, learning |
| JEL: | J51 J53 J65 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7722&r=all |
| By: | Ruder, Alexander (Federal Reserve Bank of Atlanta) |
| Abstract: | Workforce development policymakers have access to a growing catalog of training programs evaluated with rigorous randomized controlled trials. This evidence base identifies programs that work in specific geographic and temporal contexts but may not necessarily work in other contexts or at a scale sufficient to meet regional workforce needs. The author examines a sample of recent randomized controlled trials of workforce development programs and reports to what extent this body of evidence informs policymakers about what works at scale. The author finds that most programs are implemented at a small scale, use nonrandom samples from the population of interest, and are concentrated in the most populous urban areas and U.S. states. The author then discusses a method to help state and local policymakers, technical colleges, training providers, and other workforce development organizations adopt evidence-based policies in their local contexts and at scale. The two-step method includes a check on the assumptions in a program’s theory of change and an assessment of the sensitivity of projected results to violations in assumptions such as program completion rates. The author provides an example of the method applied to a hypothetical metropolitan area that seeks to adopt an evidence-based training program for youth with barriers to employment. |
| Keywords: | workforce development; human capital; skills; provision and effects of welfare programs |
| JEL: | I38 J08 J24 |
| Date: | 2019–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedacd:2019-01&r=all |
| By: | Huang, Mian (Southwestern University of Economics and Finance); Xing, Chunbing (Beijing Normal University); Cui, Xiaoyong (Peking University) |
| Abstract: | Based on a representative survey of new college graduates in China, we examine the impact of college location on their location choice upon graduation. We use a discrete choice model and the BLP method to solve the endogeneity problem of housing cost and to estimate the unobservable location features. Furthermore, we allow for different distributions of city preference for graduates studying in different regions to address the self-selection problem of college location. Empirical results show that the graduates are significantly more likely to stay in where they attended college, to return to their hometown, and to avoid cities with high housing costs. Simulation exercise shows that the impact of college location on migration varies considerably across cities, and there is significant heterogeneity for students from universities of different tiers and from rural vs. urban areas. Reduced form evidence suggests that internship in the local labor market plays an important role in raising the probability of staying. College education increased the students' interaction with the local economy and reduced the costs of job search. |
| Keywords: | higher education, regional development, location choice, human capital |
| JEL: | J13 J16 J61 J24 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12462&r=all |
| By: | Dhammika Dharmapala; Richard H. McAdams; John Rappaport |
| Abstract: | Growing controversy surrounds the impact of labor unions on law enforcement behavior. Critics argue that unions impede organizational reform and insulate officers from discipline for misconduct. Yet collective bargaining tends to increase wages, which could improve officer behavior. We provide quasi-experimental empirical evidence on the effects of collective bargaining rights on violent incidents of misconduct. Our empirical strategy exploits a 2003 Florida Supreme Court decision (Williams), which conferred collective bargaining rights on sheriffs’ deputies, resulting in a substantial increase in unionization among these officers. Using a Florida state administrative database of “moral character” violations reported by local agencies between 1996 and 2015, we implement a difference-in-difference approach in which police departments (which were unaffected by Williams) serve as a control group for sheriffs’ offices (SOs). Our estimates imply that collective bargaining rights led to a substantial increase in violent incidents of misconduct among SOs, relative to police departments. The effect of collective bargaining rights is concentrated among SOs that subsequently adopted collective bargaining agreements, and the timing of the adoption of these agreements is associated with increases in violent misconduct. There is also some evidence consistent with a “bargaining in the shadow” effect among SOs that did not unionize. |
| Keywords: | collective bargaining rights, police unions, police misconduct, law enforcement |
| JEL: | J45 J50 K42 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7718&r=all |
| By: | Eric Brunner (University of Connecticut); Shaun Dougherty (Vanderbilt University); Stephen Ross (University of Connecticut) |
| Abstract: | We examine the effect of admission to 16 stand-alone technical high schools within the Connecticut Technical High School System (CTHSS) on student educational and labor market outcomes. To identify the causal effect of admission on student outcomes, we exploit the fact that CTHSS utilizes a score-based admissions system and identify the effect of admission using a regression discontinuity approach. We find that male students attending one of the technical high schools are approximately 10 percentage points more likely to graduate from high school and 8 percentage points less likely to attend college, although there is some evidence that the negative effects on college attendance fade over time. We also find that male students attending a technical high school have quarterly earnings that are approximately 31% higher. Analyses of potential mechanisms behind these results reveal that male students that attend a technical high school have higher 9th grade attendance rates and higher 10th grade test scores. We find little evidence that attending a technical high school affects the educational or labor outcomes of women. These effects appear relatively broad based across different types of students in that we find little evidence of heterogeneity in these effects over student attributes like race and ethnicity, free lunch eligibility or residence in a poor, central city school district. However, when distinguishing between students based on the Career and Technical Education (CTE) offerings of the high school that these students likely would have attended, we find that the effects of admission to a CTHSS school are noticeably larger when the counterfactual high school has less CTE offerings. |
| Keywords: | high school education, impact of education, test scores |
| JEL: | I21 J16 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2019-047&r=all |
| By: | Hanno Förster |
| Abstract: | In many countries divorce law mandates post-marital maintenance payments (child support and alimony) to insure the lower earner in married couples against financial losses upon divorce. This paper studies how maintenance payments affect couples’ intertemporal decisions and welfare. I develop a dynamic model of family labor supply, housework, savings and divorce and estimate it using Danish register data. The model captures the policy trade off between providing insurance to the lower earner and enabling couples to specialize efficiently, on the one hand, and maintaining labor supply incentives for divorcees, on the other hand. I use the estimated model to analyze counterfactual policy scenarios in which child support and alimony payments are changed. The welfare maximizing maintenance policy is to triple child support payments and reduce alimony by 12.5% relative to the Danish status quo. Switching to the welfare maximizing policy makes men worse off, but comparisons to a first best scenario reveal that Pareto improvements are feasible, highlighting the limitations of maintenance policies. |
| Keywords: | marriage and divorce, child support, alimony, household behavior, labor supply, limited commitment |
| JEL: | D10 D91 J18 J12 J22 K36 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2019_115&r=all |
| By: | André, Pierre (University of Cergy-Pontoise, THEMA); Dupraz, Yannick (University of Warwick, CAGE) |
| Abstract: | We take advantage of a wave of school constructions in Cameroon after World War II and us evariations in school supply at the village level to estimate labor and marriage market returns to education in the 1976 population census. Education increases the likelihood to be in a polygamous union for men and for women, as well as the overall socioeconomic status of the spouse. We argue that education increases polygamy for women because it allows them to marry more educated and richer men, who are more likely to be polygamists. To show this, we estimate a structural model of marriage with polygamy. The positive affinity between a man’s polygamy and a woman’s education is mostly explained by the affinity of education. |
| Keywords: | polygamy ; education ; marriage ; matching models |
| JEL: | J12 I20 O12 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1219&r=all |
| By: | Fetzer, Thiemo (University of Warwick) |
| Abstract: | Can public interventions persistently reduce conflict? Adverse weather shocks, through their impact on incomes, have been identified as robust drivers of conflict in many contexts. An effective social insurance system moderates the impact of adverse shocks on house hold incomes, and hence,could attenuate the link between these shocks and conflict. This paper shows that a public employment program in India, by providing an alternative source of income through a guarantee of 100 days of employment at minimum wages, effectively provides insurance. This has an indirect pacifying effect. By weakening the link between productivity shocks and incomes, the program uncouples productivity shocks from conflict, leading persistently lower conflict levels |
| Keywords: | social insurance ; civil conflict ; India ; NREGA ; insurgency |
| JEL: | D74 H56 J65 Q34 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1220&r=all |
| By: | Bettinger, Eric; Kremer, Michael; Kugler, Maurice; Medina-Durango, Carlos Alberto; Posso-Suárez, Christian Manuel; Saavedra, Juan Esteban |
| Abstract: | We provide evidence on the long-run impact of vouchers for private secondary schools, evidence collected twenty years after students applied for the vouchers. Prior to the voucher lottery, students applied to either an academic or vocational secondary school, an important mediating factor in the vouchers’ impacts. We find strong tertiary education and labor market effects for those students who applied to vocational schools with almost no impact on those who applied to academic schools. The labor market gains for vocational students are strongest at the top of the distribution and null at the bottom of the distribution. We find additional long-run impacts on consumption, and teen-age fertility. The expected net present value of benefits to participants and to taxpayers was large and positive implying that the program was welfare improving unless net externalities were large and negative. |
| Keywords: | School choice, Scholarships, Formal earnings, Access to higher education, Access to consumer credit, Fertility |
| JEL: | E51 H24 I22 I23 J13 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:rie:riecdt:14&r=all |
| By: | Ellis Scharfenaker, Markus P.A. Schneider |
| Abstract: | In this paper, we present new findings that validate earlier literature on the apparent segmentation of the US earnings distribution. Previous contributions posited that the observed distribution of earnings combined two or three distinct signals and was thus appropriately modeled as a finite mixture of distributions. Furthermore, each component in the mixture appeared to have distinct distributional features hinting at qualitatively distinct generating mechanisms behind each component, providing strong evidence for some form of labor market segmentation. This paper presents new findings that support these earlier conclusions using internal CPS ASEC data spanning a much longer study period from 1974 to 2016. The restricted-access internal data is not subject to the same level of top-coding as the public-use data that earlier contributions to the literature were based on. The evolution of the mixture components provides new insights about changes in the earnings distribution including earnings inequality. In addition, we correlate component membership with worker type to provide a tacit link to various theoretical explanations for labor market segmentation, while solving the problem of assigning observations to labor market segments a priori. |
| Keywords: | Inequality, Income Distribution, Mixture Model JEL Classification:C16, D32, J01 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:uta:papers:2019_08&r=all |