nep-lab New Economics Papers
on Labour Economics
Issue of 2019‒09‒23
twenty-two papers chosen by
Joseph Marchand
University of Alberta

  1. The gendered impacts of delayed parenthood on educational and labor market outcomes: a dynamic analysis of population-level effects over young adulthood By Jessica Nisén; Maarten J. Bijlsma; Pekka Martikainen; Ben Wilson; Mikko Myrskylä
  2. Did Timing Matter? Life Cycle Differences in Effects of Exposure to the Great Recession By Kevin Rinz
  3. Labour market reform in Japan to cope with a shrinking and ageing population By Randall S. Jones; Haruki Seitani
  4. Offshoring and Skill-Biased Technical Change in the Context of US Protectionism By Agnese, Pablo; Hromcová, Jana
  5. Labour Market Flows: Accounting for the Public Sector By Fontaine, Idriss; Galvez-Iniesta, Ismael; Gomes, Pedro Maia; Vila-Martin, Diego
  6. More Power to the People: Electricity Adoption, Technological Change and Social Conflict By Molinder, Jakob; Karlsson, Tobias; Enflo, Kerstin
  7. Job Vacancies, the Beveridge Curve, and Supply Shocks: The Frequency and Content of Help-Wanted Ads in Pre- and Post-Mariel Miami By Anastasopoulos, Jason; Borjas, George J.; Cook, Gavin G.; Lachanski, Michael
  8. Macro Recruiting Intensity from Micro Data By Simon Mongey; Giovanni L. Violante
  9. Gender Differences in Wage Expectations: Sorting, Children, and Negotiation Styles By Lukas Kiessling; Pia Pinger; Philipp Seegers; Jan Bergerhoff
  10. California Paid Family Leave and Parental Time Use By Samantha Trajkovski
  11. Are asylum seekers more likely to work with more inclusive labor market access regulations? By Slotwinski, Michaela; Stutzer, Alois; Uhlig, Roman
  12. Effects of Minimum Wage on Automation and Innovation in a Schumpeterian Economy By Chu, Angus C.; Cozzi, Guido; Furukawa, Yuichi; Liao, Chih-Hsing
  13. On Her Own Account: How Strengthening Women’s Financial Control Impacts Labor Supply and Gender Norms By Erica Field; Rohini Pande; Natalia Rigol; Simone Schaner; Charity Troyer Moore
  14. Working from Home and Commuting: Heterogeneity over Time, Space, and Occupations By de Vos, Duco; van Ham, Maarten; Meijers, Evert J.
  15. Can a Deportation Policy Backfire? By Stark, Oded; Byra, Lukasz
  16. Socialist Legacies and Human Resource Management in European Transition Economies : An Analytical Survey By Horie, Norio; Kumo, Kazuhiro
  17. Granular Search, Market Structure, and Wages By Gregor Jarosch; Jan Sebastian Nimczik; Isaac Sorkin
  18. Improving Regulatory Effectiveness through Better Targeting: Evidence from OSHA By Johnson, Matthew S; Levine, David I; Toffel, Michael W
  19. No country for old men? Increasing the retirement age in the Armed Forces By Hanson, Torbjørn; Lindgren, Petter Y.
  20. The Impact of Post-Marital Maintenance on Dynamic Decisions and Welfare of Couples By Hanno Foerster
  21. GVC INVOLVEMENT AND THE GENDER WAGE GAP: MICRO - EVIDENCE FOR EUROPEAN COUNTRIES By Dagmara Nikulin; Joanna Wolszczak-Derlacz
  22. Does Integration Policy Integrate? The Employment Effects of Sweden's 2010 Reform of the Introduction Program By Qi, Haodong; Irastorza, Nahikari; Emilsson, Henrik; Bevelander, Pieter

  1. By: Jessica Nisén (Max Planck Institute for Demographic Research, Rostock, Germany); Maarten J. Bijlsma (Max Planck Institute for Demographic Research, Rostock, Germany); Pekka Martikainen (Max Planck Institute for Demographic Research, Rostock, Germany); Ben Wilson; Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Later parenthood is often beneficial for women, but less is known about its impact on men. As first births continue to occur later in life, it is important to understand whether this delay influences the educational and labor market outcomes of women and men differently, and how it changes the socioeconomic characteristics of children’s parents at birth. However, education, employment, and fertility are linked, implying that complex models are required in order to analyze the time-varying impacts of delayed parenthood. We use dynamic longitudinal models and Finnish data to analyze how, and through which socioeconomic mechanisms, a material delay in parenthood is likely to influence educational and labor market outcomes over young adulthood. A three-year delay in young-adult parenthood for all women increases educational enrollment in their early 20s, employment in their late 20s, and partly due to higher education income in their 30s. The impact of the same delay for men is more modest, and almost negligible for their employment, suggesting that later parenthood exacerbates the educational advantage of women and attenuates the income advantage of men. However, it strengthens the socioeconomic standing of both men and women when they become parents, essentially due to the accumulation of effects.
    Keywords: Finland, education, gender, labor market, longitudinal analysis, parenthood
    JEL: J1 Z0
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2019-017&r=all
  2. By: Kevin Rinz
    Abstract: Exposure to a recession can have persistent, negative consequences, but does the severity of those consequences depend on when in the life cycle a person is exposed? I estimate the effects of exposure to the Great Recession on employment and earnings outcomes for groups defined by year of birth over the ten years following the beginning of the recession. With the exception of the oldest workers, all groups experience reductions in earnings and employment due to local unemployment rate shocks during the recession. Younger workers experience the largest earnings losses in percent terms (up to 13 percent), in part because recession exposure makes them persistently less likely to work for high-paying employers even as their overall employment recovers more quickly than older workers’. Younger workers also experience reductions in earnings and employment due to changes in local labor market structure associated with the recession. These effects are substantially smaller in magnitude but more persistent than the effects of unemployment rate increases.
    Keywords: Great Recession, unemployment, earnings, labor market concentration
    JEL: J30 J60
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:19-25&r=all
  3. By: Randall S. Jones; Haruki Seitani
    Abstract: Fundamental reform of traditional Japanese labour market practices is essential to cope with rapid population ageing and the era of 100-year lives. A shift to more flexible employment and wage systems based on performance rather than age would enable Japan to better utilise its human capital. Abolishing the right of firms to set mandatory retirement – typically at age 60 – would enable employees to extend their careers and reduce the link between wages and seniority. It would also facilitate a further increase in the pension eligibility age above 65, thereby helping to reduce poverty among the elderly. Life-long learning is another key element to extending careers. It is also crucial to address a range of issues that discourage the employment of women, namely the lack of work-life balance and shortages of high quality and affordable childcare and long-term care for the elderly. Fighting discrimination and gender stereotypes is also important to allow women to assume greater leadership roles. Coping with population decline also requires pursuing recent efforts to increase the role of foreign workers in Japan. Breaking down labour market dualism is crucial to expand employment opportunities for women and older people, while reducing income inequality and relative poverty.This Working Paper relates to the 2019 OECD Economic Survey of Japan(http://www.oecd.org/economy/japan- economic-snapshot/)
    Keywords: childcare, dualism, female employment, foreign workers, Japanese economy, labour force participation, labour market, labour shortages, lifelong learning, mandatory retirement, non-regular workers, older workers, pension eligibility age, population ageing, womenomics, work-life balance
    JEL: J2 J3 J7 J8
    Date: 2019–09–18
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:1568-en&r=all
  4. By: Agnese, Pablo (UIC Barcelona); Hromcová, Jana (ESSCA School of Management)
    Abstract: We discuss the effects of offshoring on the labor market in a matching model with endogenous adjustment of educational skills. We carry out a comparative statics analysis and show that offshoring leads to a restructuring of the economy through skill-biased technical change (SBTC) where overall welfare is improved. In a policy exercise we show that, if offshoring were to be opposed by a protectionist agenda, labor market flexibility can bring about the same welfare gain. In addition, we offer an empirical analysis aimed at verifying the correlation be- tween offshoring and SBTC in US manufacturing industries in recent years. Our results show that different offshoring strategies affect SBTC differently. In particular, the evidence suggests that while high-skill offshoring strategies open the skill gap, low-skill offshoring strategies tend to work in the opposite direction.
    Keywords: offshoring, skills, skill-biased technical change
    JEL: J64 F16 F17
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12593&r=all
  5. By: Fontaine, Idriss (Université de la Réunion); Galvez-Iniesta, Ismael (Universidad Carlos III de Madrid); Gomes, Pedro Maia (Birkbeck, University of London); Vila-Martin, Diego (University of Amsterdam)
    Abstract: For the period between 2003 and 2018, we document a number of facts about worker gross flows in France, the United Kingdom, Spain and the United States, focussing on the role of the public sector. Using the French, Spanish and UK Labour Force Survey and the US Current Population Survey data, we examine the size and cyclicality of the flows and transition probabilities between private and public employment, unemployment and inactivity. We examine the stocks and flows by gender, age and education. We decompose contributions of private and public job-finding and job-separation rates to fluctuations in the unemployment rate. Public-sector employment contributes 20 percent to fluctuations in the unemployment rate in the UK, 15 percent in France and 10 percent in Spain and the US. Private-sector workers would forgo 0.5 to 2.9 percent of their wage to have the same job security as public-sector workers.
    Keywords: worker gross flows, job-finding rate, job-separation rate, public sector, public-sector employment
    JEL: E24 E32 J21 J45 J60
    Date: 2019–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12579&r=all
  6. By: Molinder, Jakob (Department of Economic History, Uppsala University); Karlsson, Tobias (Department of Economic History, Lund University); Enflo, Kerstin (Department of Economic History, Lund University)
    Abstract: There is a wide-spread concern that technical change may spur social conflicts, especially if workers are replaced with machines. To empirically analyze whether job destruction drives protests, we study a historical example of a revolutionary new technology: the adoption of electricity. Focusing on the gradual roll-out of the Swedish electricity grid between 1900 and 1920 enables us to analyze 2,487 Swedish parishes in a difference-in-differences framework. Proximity to large-scale water-powered electricity plants is used to instrument for electricity adoption. Our results confirm that the labor saving nature of electricity was followed by an increase of local conflicts in the form of strikes. But displaced workers were not likely to initiate conflicts. Instead, strikes were most common in sectors with employment growth. Similarly,we find that the strikes were of an offensive rather than a defensive nature. Thus, electrification did not result in rebellions driven by technological anxiety. It rather provided workers with a stronger bargaining position from which they could voice their claims through strikes.
    Keywords: technological change; electrification; labor demand; labor conflicts; strikes; infrastructure investments
    JEL: N14 N34 N74 O14
    Date: 2019–09–19
    URL: http://d.repec.org/n?u=RePEc:hhs:luekhi:0206&r=all
  7. By: Anastasopoulos, Jason (University of Georgia); Borjas, George J. (Harvard University); Cook, Gavin G. (Princeton University); Lachanski, Michael (Princeton University)
    Abstract: Beginning in 1951, the Conference Board constructed a monthly job vacancy index by counting the number of help-wanted ads published in local newspapers in 51 metropolitan areas. We use the Help-Wanted Index (HWI) to document how immigration changes the number of job vacancies in the affected labor markets. Our analysis revisits the Mariel episode. The data reveal a marked drop in Miami's HWI relative to many alternative control groups in the first 4 or 5 years after Mariel, followed by recovery afterwards. The Miami evidence is consistent with the observed relation between immigration and the HWI across all metropolitan areas in the 1970- 2000 period: these spatial correlations suggest that more immigration reduces the number of job vacancies. We also explore some of the macro implications of the Mariel supply shock and show that Miami's Beveridge curve shifted inwards by the mid-1980s, suggesting a more efficient labor market, in contrast to the outward nationwide shift coincident with the onset of the 1980- 1982 recession. Finally, we examine the text of the help-wanted ads published in a number of newspapers and document a statistically and economically significant post-Mariel decline in the relative number of low-skill vacancies advertised in the Miami Herald.
    Keywords: job vacancies, immigration, Beveridge Curve
    JEL: J23 J6
    Date: 2019–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12581&r=all
  8. By: Simon Mongey; Giovanni L. Violante
    Abstract: We merge QCEW and JOLTS microdata to study the recruiting intensity of firms in the cross-section and over time. Vast establishment-level heterogeneity in vacancy filling rates is entirely explained by differences in gross hiring rates. Through the lens of standard theory, we aggregate firm-level decisions into an measure of aggregate recruiting intensity (ARI). Procyclicality of ARI is primarily due to cutting recruiting effort in slack labor markets. Given this we provide an ARI index easily computable from publicly available macroeconomic data. Declining ARI in the Great Recession accounted for much of the increase in unemployment, but little of its persistence.
    JEL: E24 E32
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:26231&r=all
  9. By: Lukas Kiessling; Pia Pinger; Philipp Seegers; Jan Bergerhoff
    Abstract: This paper presents evidence from a large-scale study on gender differences in expected wages before labor market entry. Based on data for over 15,000 students, we document a significant and large gender gap in wage expectations that closely resembles actual wage differences, prevails across subgroups, and along the entire distribution. To understand the underlying causes and determinants, we relate expected wages to sorting into majors, industries, and occupations, child-rearing plans, perceived and actual ability, personality, perceived discrimination, and negotiation styles. Our findings indicate that sorting and negotiation styles affect the gender gap in wage expectations much more than prospective child-related labor force interruptions. Given the importance of wage expectations for labor market decisions, household bargaining, and wage setting, our results provide an explanation for persistent gender inequalities.
    Keywords: subjective wage expectations, gender gap, negotiation styles
    JEL: D81 D84 I21 I23 J13 J30
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_7827&r=all
  10. By: Samantha Trajkovski (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244)
    Abstract: Paid family leave policies are intended to help working parents fulfill their work and child care responsibilities by providing them with paid time off from work after the birth of a child. While other research has shown that paid leave policies increase leave-taking among parents, little is known about how parents of infants spend their time while they are on leave and shortly after returning to work. Using the American Heritage Time Use Study and taking a difference-in-differences approach, this paper shows that the California Paid Family Leave policy led to an additional six hours per week mothers spend on child care activities, four additional hours in basic care and two in educational or recreational care. Notably, the availability of paid leave resulted in increases in time mothers spend with children even after they return to work. The increases in maternal time investments also appear to persist beyond infancy, until children reach age three. While fathers are also eligible for paid leave under the California policy, the policy did not induce a change in the total amount of time fathers spend on child care but did result in slightly more time spent playing with children and less time on basic care activities. Given the large literature showing that parental time investments, especially those made early in a child’s life, play a strong role in child cognitive skill development, the findings in this paper are important for policymakers considering enacting paid leave policies.
    Keywords: Paid Family Leave, Parental Time Use
    JEL: J13 J18 J10
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:max:cprwps:217&r=all
  11. By: Slotwinski, Michaela; Stutzer, Alois; Uhlig, Roman
    Abstract: In the face of recent refugee migration, early integration of asylum seekers into the labor market has been proposed as an important mechanism for easing their economic and social lot in the short as well as in the long term. However, little is known about the policies that foster or hamper their participation in the labor market, in particular during the important initial period of their stay in the host country. In order to evaluate whether inclusive labor market policies increase the labor market participation of asylum seekers, we exploit the variation in asylum policies in Swiss cantons to which asylum seekers are as good as randomly allocated. During our study period from 2011 to 2014, the employment rate among asylum seekers varied between 0% and 30.2% across cantons. Our results indicate that labor market access regulations are responsible for a substantial proportion of these differences, in which an inclusive regime increases participation by 11 percentage points. The marginal effects are larger for asylum seekers who speak a language that is linguistically close to the one in their host canton.
    Keywords: Asylum policy,asylum seekers,economic integration,employment ban,labor market access regulation
    JEL: F22 J61 J15
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:zbw:glodps:396&r=all
  12. By: Chu, Angus C.; Cozzi, Guido; Furukawa, Yuichi; Liao, Chih-Hsing
    Abstract: This study explores the effects of minimum wage on automation and innovation in a Schumpeterian growth model. We find that raising the minimum wage decreases the employment of low-skill workers and has ambiguous effects on innovation and automation. Specifically, if the elasticity of substitution between low-skill workers and high-skill workers in production is less (greater) than unity, then raising the minimum wage leads to an increase (a decrease) in automation and innovation. We also calibrate the model to aggregate data to quantify the effects of minimum wage on the macroeconomy.
    Keywords: minimum wage, unemployment, innovation, automation
    JEL: E24 O3 O4
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:95824&r=all
  13. By: Erica Field (Duke University); Rohini Pande (Cowles Foundation, Yale University); Natalia Rigol (Harvard University); Simone Schaner (University of Southern California); Charity Troyer Moore (MacMillan Center, Yale University)
    Abstract: Can greater control over earned income incentivize women to work and influence gender norms? In collaboration with Indian government partners, we provided rural women with individual bank accounts and randomly varied whether their wages from a public workfare program were directly deposited into these accounts or into the male household head’s account (the status quo). Women in a random subset of villages were also trained on account use. In the short run, relative to women just offered bank accounts, those who also received direct deposit and training increased their labor supply in the public and private sectors. In the long run, gender norms liberalized: women who received direct deposit and training became more accepting of female work, and their husbands perceived fewer social costs to having a wife who works. These effects were concentrated in households with otherwise lower levels of, and stronger norms against, female work. Women in these households also worked more in the long run and became more empowered. These patterns are consistent with models of household decisionmaking in which increases in bargaining power from greater control over income interact with, and influence, gender norms.
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:cwl:cwldpp:2201&r=all
  14. By: de Vos, Duco (Delft University of Technology); van Ham, Maarten (Delft University of Technology); Meijers, Evert J. (Delft University of Technology)
    Abstract: Teleworking may increase the willingness to accept a longer commute. This paper presents new evidence of the effect of teleworking on the length of commutes. We use novel panel data from the Netherlands, for the years 2008-2018, and find stronger effects compared to studies that use older data. Between 2008 and 2018 however, the effect was remarkably stable: workers that started teleworking increased their commutes by 12 percent on average. We analyse heterogeneity in the effect of teleworking on commuting across different levels of urbanization and across occupations. This study stresses the effects of teleworking on the geographical scale of labour markets, and provides important inputs for policymakers that aim to promote teleworking.
    Keywords: telecommuting, commuting time, information technology, fixed effects
    JEL: R11 R41 O18
    Date: 2019–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12578&r=all
  15. By: Stark, Oded (University of Bonn); Byra, Lukasz (University of Warsaw)
    Abstract: Drawing on a model in which utility is derived from consumption and effort (labor supply), we ask how the deportation of a number of undocumented migrants influences the decisions regarding labor supply, consumption, and savings of the remaining undocumented migrants. We assume that the intensity of deportation serves as an indicator to the remaining undocumented migrants when they assess the probability of being deported. We find that a higher rate of deportation induces undocumented migrants to work harder, consume less and, as a result of those responses, to save more. Assuming that the purpose of deportation policy is to reduce the aggregate labor supply of undocumented migrants in order to raise the wages of low-skilled native workers, we conclude that the policy can backfire: an increase in the labor supply of the remaining undocumented migrants can more than offset the reduction in the labor supply arising from the deportation of some undocumented migrants. Simulation shows that if the number of deportations in relation to the size of the undocumented migrant workforce is small, then the combined effect of the reduction in the labor supply of the deportees and the increase in the labor supply of the remaining undocumented migrants can be that the aggregate labor supply of undocumented migrants will increase. It follows that an effective deportation policy has to involve the expulsion of a substantial proportion of the total number of undocumented migrants in the workforce.
    Keywords: consumption of undocumented migrants, labor supply of undocumented migrants, savings of undocumented migrants, aggregate labor supply of undocumented migrants, efficacy of a deportation policy of a number of undocumented migrants
    JEL: D81 E21 F22 J61 J78
    Date: 2019–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12583&r=all
  16. By: Horie, Norio; Kumo, Kazuhiro
    Abstract: This paper takes up the human resource management studies targeting European transition economies (ETEs) in the context of transition economies and empirically examines the relationship between the existing studies, which discuss the institutional and cultural legacies of their socialist period, and the attributes of the literature. This analytical survey clarifies that the major studies in human resource management in ETEs still keep focus on the old socialist legacies, particularly in traditional industries, and that the socialist institutional legacies are actively and continuously discussed in ETEs to understand the diversity of European HRM, though there is a possibility that the divergence theory based on cultural legacies may become inapplicable in accordance with their deepening integration with the EU economy.
    Keywords: European transition economies, human resource management, socialist legacy
    JEL: J50 M12 M54 P31
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:hit:hitcei:2019-7&r=all
  17. By: Gregor Jarosch; Jan Sebastian Nimczik; Isaac Sorkin
    Abstract: We build a model where firm size is a source of labor market power. The key mechanism is that a granular employer can eliminate its own vacancies from a worker's outside option in the wage bargain. Hence, a granular employer does not compete with itself. We show how wages depend on employment concentration and then use the model to quantify the effects of granular market power. In Austrian micro-data, we find that granular market power depresses wages by about ten percent and can explain 40 percent of the observed decline in the labor share from 1997 to 2015. Mergers decrease competition for workers and reduce wages even at non-merging firms.
    JEL: E2 J01
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:26239&r=all
  18. By: Johnson, Matthew S; Levine, David I; Toffel, Michael W
    Abstract: We study how a regulator can best allocate its limited inspection resources. We direct our analysis to a US Occupational Safety and Health Administration (OSHA) inspection program that targeted dangerous establishments and allocated some inspections via random assignment. We find that inspections reduced serious injuries by an average of 9% over the following five years. We use new machine learning methods to estimate the effects of counterfactual targeting rules OSHA could have deployed. OSHA could have averted over twice as many injuries if its inspections had targeted the establishments where we predict inspections would avert the most injuries. The agency could have averted nearly as many additional injuries by targeting the establishments predicted to have the most injuries. Both of these targeting regimes would have generated over $1 billion in social value over the decade we examine. Our results demonstrate the promise, and limitations, of using machine learning to improve resource allocation. JEL Classifications: I18; L51; J38; J8
    Keywords: Social and Behavioral Sciences, Public Policy
    Date: 2019–09–01
    URL: http://d.repec.org/n?u=RePEc:cdl:indrel:qt1gq7z4j3&r=all
  19. By: Hanson, Torbjørn; Lindgren, Petter Y.
    Abstract: An ageing workforce due to low fertility rates and higher life expectancies challenges modern industrialized economies. To secure economic welfare and the balance of public budgets, governments worldwide implement reforms to increase the retirement age. This trend towards higher retirement age confronts a defense sector that for centuries has been in search of an age structure characterized by ‘youth and vigor’. We study the economic gains to society from increasing the special retirement age for military personnel in the Norwegian Armed Forces. By combining the literatures on pension, personnel, and military economics, we identify mechanisms crucial to the outcome of a special retirement age reform. Monte Carlo simulation is applied to illustrate the potential impact on the economic net gains of uncertain variables. We find that an increase in the retirement age provides substantial net benefits to society, even under fairly negative assumptions about the consequences for retention, motivation and efforts, and the value of elderly personnel in the Armed Forces.
    Keywords: Cost-benefit analysis, retirement age, military personnel, productivity, labor economics, human resources
    JEL: D61 H55 J08 M50
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:95917&r=all
  20. By: Hanno Foerster (Boston College)
    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: 2019–09–13
    URL: http://d.repec.org/n?u=RePEc:boc:bocoec:982&r=all
  21. By: Dagmara Nikulin (Gdansk University of Technology, Gdansk, Poland); Joanna Wolszczak-Derlacz (Gdansk University of Technology, Gdansk, Poland)
    Abstract: In this paper we examine the linkages between involvement into global value chains (GVCs) and the gender wage inequalities. We use merged wide-ranging Structure of Earning (SES) and World Input Output Database (WIOD) for the years 2002, 2006, 2010 and 2014, covering manufacturing industries of 18 European countries. We employ a wealth of information on employees’ personal and company characteristics as well as sectoral variable reflecting the involvement in GVC measured by foreign value added embodied in exports (FVA/Exp.) We augment the Mincerian regression with GVC variable and report gender wage discrimination among European employees. The results indicate that wages of workers employed in sectors more involved in GVC are lower. However, the relationship between GVC and wages differs in respect to gender; women are more affected by the negative impact of greater trade involvement in comparison to men. There is some education/skill/occupation heterogeneity with workers with middle education level and middle skills being most affected. Finally, our results show the different patters across concentrated and competitive industries: the wage drop due GVC intensification is observed for the former ones.
    Keywords: gender wage gap, gender inequalities, micro data, European countries
    JEL: J16 J31 F16
    Date: 2019–08
    URL: http://d.repec.org/n?u=RePEc:gdk:wpaper:57&r=all
  22. By: Qi, Haodong (Malmö University); Irastorza, Nahikari (Malmö University); Emilsson, Henrik (Malmö University); Bevelander, Pieter (Malmö University)
    Abstract: Sweden, like many other European countries, has seen a surge in refugee immigrants over recent years, which raises a concern about the labour market integration of these newcomers. This paper investigates whether integration policy may improve refugees' labour market performance. Specifically, we examine the employment effects of the 2010 reform of the introduction program (known as IP), and how the effects vary depending on refugees' educational attainment. Given that the eligibility for the new IP was exogenously determined by whether the refugee status was granted before or after December 1, 2010, we identify the employment effects by comparing those who participated in the new IP (treatment group), with those who participated in the old IP (control group). Using a triple difference method, we find positive employment effects of the new IP that exacerbate over time. The effects are significant and identical for male refugees, regardless of educational attainment; in contrast, the effects of program participation for refugee women vary by education level, and are greater for high-educated women than that for the low-educated counterparts.
    Keywords: labour market policy, employment, refugees
    JEL: J62 J68
    Date: 2019–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12594&r=all

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