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on Labour Economics |
| By: | Damiani, Mirella; Pompei, Fabrizio; Ricci, Andrea |
| Abstract: | This article analyses the role of deviations from higher level collective agreements adopted in firm-level bargaining to regain higher labour mobility, net positive employment effects and a resurgence of labour productivity. Using Italian firm level data, after performing preliminary pooled ordinary least squares and fixed effects estimates, we adopt a difference-in-difference approach combined with a propensity score matching. All the estimations show that opting out clauses notably increases both hiring and separations, but without significant variations in terms of net employment. In addition, no significant labour productivity gains are obtained. The only significant change concerns the increase in the share of temporary workers. |
| Keywords: | Opting Out, Collective Bargaining, Labour Flexibility, Difference in Difference |
| JEL: | J5 J51 J53 J63 J81 J82 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97426&r=all |
| By: | John Haltiwanger (University of Maryland; National Bureau of Economic Research; Johns Hopkins University; Forschungsinstitut zur Zukunft der Arbeit; Institute for the Study of Labor (IZA)); Erika McEntarfer; Bruce C. Fallick; Matthew Staiger (University of Maryland, US Census Bureau) |
| Abstract: | A substantial empirical literature documents large and persistent average earnings losses following job displacement. Our paper extends the literature on displaced workers by providing a comprehensive picture of earnings and employment outcomes for all workers who separate. We show that for workers not recalled to their previous employer, earnings losses follow separations in general, as opposed to displacements in particular. The key predictor of earnings losses is not displacement but the length of the nonemployment spell following job separation. Moreover, displaced workers are no more likely to experience a substantial spell of nonemployment than are other non-recalled separators. Our results suggest that future research on the consequences of job loss should work to disentangle the strong association between nonemployment and earnings losses, as opposed to focusing specifically on displaced workers. |
| JEL: | J63 J64 |
| Date: | 2019–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:86642&r=all |
| By: | Luisito Bertinelli; Olivier Cardi; Romain Restout |
| Abstract: | Motivated by recent evidence pointing at an increasing contribution of asymmetric shocks across sectors to economic fluctuations, we explore the sectoral composition effects of technology shocks biased toward the traded sector. Using a panel of seventeen OECD countries over the period 1970-2013, our VAR evidence reveals that a permanent increase in traded relative to non-traded TFP lowers the traded hours worked share by shifting labor toward the non-traded sector, and has an expansionary effect on the labor income share in both sectors. Our quantitative analysis shows that the open economy version of the neoclassical model can reproduce the reallocation and redistributive effects we document empirically once we allow for technological change biased toward labor together with additional specific elements. Calibrating the model to country-specific data, the model can account for the cross-country dispersion in the reallocation and redistributive effects we document empirically once we let factor-biased technological change vary across sectors and between countries. Finally, we document evidence which supports our hypothesis of factor-biased technological change as we find empirically that countries where capital-intensive industries contribute more to the increase in traded TFP are those where capital relative to labor efficiency increases. |
| Keywords: | Sectoral technology shocks, factor-augmenting efficiency, Open economy, Labor reallocation across sectors, CES production function, Labor income share |
| JEL: | E22 F11 F41 F43 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:283847880&r=all |
| By: | Dimitrios Exadactylos (IMT School for advanced studies); Massimo Riccaboni (IMT School for advanced studies); Armando Rungi (IMT School for advanced studies) |
| Abstract: | In this paper, we test the contribution of foreign management on firms competitiveness. We use a novel dataset on the careers of 165,084 managers employed by 13,106 companies in the United Kingdom in the period 2009-2017. We find that a domestic manufacturing firm becomes on average between 9% and 12% more productive after hiring at least one foreign manager. Interestingly, productivity gains by domestic firms after recruiting foreign managers are similar in magnitude to gains after foreign acquisitions as from previous literature. Eventually, we do not find significant gains by foreign-owned firms hiring foreign managers. Our identification strategy combines difference-in-difference and matching techniques to challenge reverse causality. We proxy firms competitiveness either by total factor productivity or by technical efficiency derived from stochastic frontier analyses. Eventually, we argue that limits to the circulation of talents, as for example in case of a Brexit event, may hamper the allocation of labor productive resources. |
| Keywords: | managers; productivity; job mobility; spillovers; multinational enterprises; migration |
| JEL: | F22 F23 L23 L25 J61 M11 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:1/2019&r=all |
| By: | Benito Arruñada |
| Abstract: | Experience is a major source of knowledge. Could institutions be improved by eliciting the additional knowledge held by experienced individuals? I show here that in several areas of the law experienced individuals are more critical of institutional quality than inexperienced individuals. Moreover, performance indexes built with experienced subsamples substantially alter country rankings. Assuming no unmeasured confounders, more knowledge arguably leads experienced individuals to revise the more benign view held by the general population, composed mostly of inexperienced individuals. Moreover, experience is a stronger driver than alternative sources of knowledge, including education, which might therefore be reinforcing milder and, arguably, incorrect assessments of institutional quality. After observing how this “experience effect” varies systematically across countries, I conclude by proposing that evaluations of institutional quality pay greater attention to experienced individuals and cautioning against basing inferences on assessments made by the general population. |
| Keywords: | Institutions, experience, knowledge, perception, rule of law, measurement |
| JEL: | D02 D71 D83 K12 K14 K31 K32 K41 K42 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1683&r=all |
| By: | Vega, Alejandro (Department of Economics, Umeå University) |
| Abstract: | The purpose of this study is to analyze the labour force participation response to major health shocks, such as new cancer diagnoses, heart attacks and strokes, in middle- aged to elderly Mexican couples. The data originate from the Mexican Health and Aging Study (MHAS), and provides information on how couples coordinate their labour market activities in response to major health shocks. I find that female labour force participation is negatively affected by a major health shock to her spouse. In contrast, there is not a significant effect of a female negative health shock on her spouse’s labour force participation. I find the same result when the labour force participation is split between part-time work and full-time work. |
| Keywords: | health shock; labour force participation; household model; labour supply; elderly couples |
| JEL: | I10 J01 |
| Date: | 2019–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0967&r=all |
| By: | Elena Derby (Department of Economics, Georgetown University ; Joint Committee on Taxation) |
| Abstract: | This paper investigates the effects of the Low Income Housing Tax Credit (LIHTC) on residents of buildings qualifying for the credit. Specifically, it analyzes whether individuals who grow up in LIHTC housing are more likely to enroll in post-secondary education programs and have higher earnings as adults. Using administrative tax records, I find that each additional year spent in LIHTC housing as a kid is associated with a 3.5 percent increase in the likelihood of attending a higher education program for four years or more, and a 3.2 percent increase in future earnings. Furthermore, I find that there are heterogeneous effects when comparing individuals who live in LIHTC housing located in neighborhoods with different characteristics, and among families that have varying levels of housing security prior to entering a LIHTC building. Based on this analysis, I conclude that the driving mechanism behind the positive estimated LIHTC effect is likely that the housing subsidy provides families with a more stable living situation. |
| Keywords: | Low Income Housing, Tax Policy, Poverty and Welfare |
| JEL: | H20 I31 H53 |
| Date: | 2019–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~19-19-07&r=all |
| By: | Janardhanan, Niranjan S.; Lewis, Kyle; Reger, Rhonda K.; Stevens, Cynthia K. |
| Abstract: | Many contemporary organizations depend on team-based organizing to achieve high performance, innovate services and products, and adapt to environmental turbulence. Significant research focuses on understanding how teams develop, assimilate, and apply diverse information; yet organizational practices have evolved in new ways that are not fully explored in the teams literature. Individuals with diverse motivations, knowledge and perspectives are often assigned to teams, creating burdens for members to develop effective ways to work together, to learn from each other, and to achieve goals amid the complexity of today’s organizational contexts. In this paper we examine a multilevel model of how team goal orientation affects cross-understanding—the extent to which team members understand the other members’ mental models—which in turn affects team and individual performance. We examine these effects using 160 teams of 859 participants who completed a semester-long business simulation. Findings show that the more team members are motivated by learning goals, the greater a team’s cross-understanding and subsequent team and individual performance. These effects are dampened when members are motivated by performance goals—to avoid mistakes or prove competence. This study expands the cross-understanding literature, revealing motivational antecedents that explain why some teams develop higher cross-understanding than others. We also contribute to the goal orientation literature by demonstrating that team goal orientation influences members’ learning about other members, and in so doing, also affects team and individual performance. As team motivation can be influenced by organizational practices, our findings also contribute practical insights for organizational leaders. Key words: Team cognition, cross-understanding, team goal orientation, team performance, individual performance |
| Keywords: | Team cognition; cross-understanding; team goal orientation; team performance; individual performance |
| JEL: | J50 |
| Date: | 2019–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:101239&r=all |
| By: | Ruesga Benito, Santos; Heredero de Pablos, María Isabel; Da Silva Bichara, Julimar; Pérez Ortiz, Laura; Viñas Apaolaza, Ana |
| Abstract: | The paper's main objective is to analyze the collective bargaining response in terms of internal flexibility during the Great Recession (GR) in five EU countries (Spain, Germany, France, Italy, United Kingdom), and three economic sectors (industry, commerce and hospitality, and financial services and real estate), at the establishment level (ECS2013 database). The theoretical frame-work used is linked to the varieties of unionism. Using a descriptive statistical analysis and a probit model, this paper presents new evidences. However, the responses were heterogeneous between countries and sectors, the use of internal functional flexibility has been more intense than the numerical and salary internal flexibility. Moreover, it is related to the intensity of GR. These results, in general, while requiring a more detailed analysis of the effects of the GR on internal flexibility in the EU countries, contribute to introducing a new perspective in the socioeconomic literature about the collective bargaining and internal flexibility. |
| Keywords: | China,collective bargaining,internal flexibility,Great Recession,establishment level |
| JEL: | J51 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201961&r=all |
| By: | Roth, Anja |
| Abstract: | Do childcare institutions affect gender norms of individuals? I examine the introduction of childcare services and their impact on voters' support of policies promoting maternal employment. I address the inherent endogeneity between institutions and attitudes by exploiting regional variation in the regulations and provision of childcare for school children outside of regular school hours. My results show that the expansion of childcare for school children increases voters' support of policies promoting maternal employment. This indicates a direct effect of local institutions on voters' attitudes. I additionally show that as public costs of the new facilities increase, support of additional policies promoting maternal employment decreases. |
| Keywords: | Childcare ; gender norms ; maternal employment ; policy evaluation |
| JEL: | H23 H31 J13 |
| Date: | 2019–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2019/22&r=all |