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on Labour Economics |
| By: | Joseph G. Altonji; Disa M. Hynsjo; Ivan Vidangos |
| Abstract: | We examine what determines the family income that men and women experience over their adult lives. To this end, we estimate a dynamic model of earnings, nonlabor income, fertility, marriage, and divorce. We use the model to address a number of important questions in labor and family economics, including the effects of education and unobserved permanent characteristics on marital status and on spouse characteristics conditional on marriage. We estimate the dynamic response of wage rates, work hours, earnings, marriage and spouse characteristics and family income to various shocks. Marital status has a much larger effect on family income for women than men, while labor market shocks to men are more important than shocks to women. Marital sorting plays a major role in the return to education and permanent wages, especially for women. We use the model to provide gender-specific estimates of the contribution of education, permanent wages, labor market shocks, spouse characteristics, and marital histories to the variance of family income at a given age and over a lifetime. |
| JEL: | D1 D31 J01 J10 J12 J16 J31 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28400&r=all |
| By: | Guinnane, Timothy; Streb, Jochen |
| Abstract: | Economists have long argued that introducing social insurance will reduce fertility. The hypothesis relies on standard models: if children are desirable in part because they provide security in case of disability or old age, then State programs that provide insurance against these events should induce couples to substitute away from children in the allocation of wealth. We test this claim using the introduction of social insurance in Germany in the period 1881-1910. Bismarck's social-insurance scheme had three pillars: health insurance, workplace accident insurance, and an old age pension. Earlier studies typically focus on the pension alone; we consider all three pillars. We find that Bismarck's social insurance system affected fertility overall only via its effects on the incentive to marry. The old age insurance by itself tended to reduce marriages, but the health and accident-insurance components had the opposite effect. For people exposed to all three pillars of social insurance, the two effects cancelled each other and the aggregate effect on fertility was muted. |
| Keywords: | Social insurance,pensions,fertility transition,marriage,Bismarck,Prussia |
| JEL: | H55 I13 J11 N13 N33 N43 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:901&r=all |
| By: | Ilse Lindenlaub; Fabien Postel-Vinay |
| Abstract: | The worker-job surplus — the sum of the worker's and the employer's net values of an employment relationship — is the object that drives decisions in most matching models of the labor market. In this paper, we develop a theory-based empirical method to determine which of the observable worker and job characteristics impact the worker-job surplus in the data. To do so, we exploit the mobility choices of employed workers. Our method further indicates whether workers sort along those surplus-relevant attributes when searching for jobs. It also provides a test of the commonly used single-index assumption, according to which worker and job heterogeneity can each be summarized by scalar indices. We implement our method on US data using the Survey of Income and Program Participation and the O*NET. The results suggest that a relatively sparse model underlies the data. On the job side, a cognitive and an interpersonal skill requirement impact the surplus along with the (dis)amenity of work duration as well as the workplace size. On the worker side, we find that most of the relevant characteristics are symmetric to the selected job requirements. We reject the existence of a single-index representation of these relevant multi-dimensional worker and job attributes. We then use our results in a new approach to defining the economy's labor submarkets, highlighting a potentially important application of our methodology. |
| JEL: | E24 J0 J20 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28402&r=all |
| By: | ; Fabian Eckert |
| Abstract: | Children's education and economic opportunities differ substantially across US neighborhoods. This paper develops and estimates a spatial equilibrium model that links children's education outcomes to their childhood location. Two endogenous factors determine education choices in each location: local education quality and local labor market access. We estimate the model with US county-level data and study the effects of a school funding equalization on education outcomes and social mobility. The reform's direct effects improve education outcomes among children from low-skill families. However, the effects are weaker in spatial general equilibrium because average returns to education decline and residential and educational choices of low-skill families shift them toward locations with lower education quality. |
| Keywords: | Intergenerational mobility; Equality of opportunity; School access; Education reform; Regional labor markets; Economic geography; Spatial economics |
| JEL: | E24 E62 R12 R23 I24 I28 |
| Date: | 2021–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmoi:90368&r=all |
| By: | Harriet Duleep (William & Mary, IZA, and GLO); David A. Jaeger (University of St. Andrews, CReAM, IZA, and CEPR); Peter McHenry (William & Mary and GLO) |
| Abstract: | We present a novel theory that immigrants facilitate innovation and entrepreneurship by being willing and able to invest in new skills. Immigrants whose human capital is not immediately transferable to the host country face lower opportunity costs of investing in new skills or methods and will be more exible in their human capital investments than observationally equivalent natives. Areas with large numbers of immigrants may therefore lead to more entrepreneurship and innovation, even among natives. We provide empirical evidence from the United States that is consistent with the theory's predictions. |
| Keywords: | immigration, innovation, entrepreneurship, human capital |
| JEL: | J15 J24 J39 J61 L26 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:2108&r=all |
| By: | Ann L. Owen; Judit Temesvary; Andrew Wei |
| Abstract: | We examine the effect of the social networks of bank directors on board gender diversity and compensation using a unique, newly compiled dataset over the 1999-2018 period. We find that within-board social networks are extensive, but there are significant differences in the size and gender composition of social networks of male vs female bank directors. We also find that samegender networks play an important role in determining the gender composition of bank boards. Finally, we show that those connected to male directors receive higher compensation, but we find no evidence that connections to female directors are influential in determining pay and bonuses. |
| Keywords: | Bank boards; Social networks; Gender; Gender diversity |
| JEL: | G21 G34 J16 |
| Date: | 2021–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2021-21&r=all |
| By: | Titan Alon (University of California San Diego); Sena Coskun (University of Mannheim); Matthias Doepke (Northwestern University); David Koll (European University Institute); Michèle Tertilt (Universität Mannheim) |
| Abstract: | We examine the impact of the global recession triggered by the Covid-19 pandemic on women’s versus men’s employment. Whereas recent recessions in advanced economies usually had a disproportionate impact on men’s employment, giving rise to the moniker “mancessions,” we show that the pandemic recession of 2020 was a “shecession” in most countries with larger employment declines among women. We examine the causes behind this pattern using micro data from several national labor force surveys, and show that both the composition of women’s employment across industries and occupations as well as increased childcare needs during closures of schools and daycare centers made important contributions. While many countries exhibit similar patterns, we also emphasize how policy choices such as furloughing policies and the extent of school closures shape the pandemic’s impact on the labor market. Another notable finding is the central role of telecommuting: gender gaps in the employment impact of the pandemic arise almost entirely among workers who are unable to work from home. Nevertheless, among telecommuters a different kind of gender gap arises: women working from home during the pandemic spent more work time also doing childcare and experienced greater productivity reductions than men. We discuss what our findings imply for gender equality in a post-pandemic labor market that will likely continue to be characterized by pervasive telecommuting. |
| Keywords: | COVID-19, unemployment, Gender unemployment gap, childcare |
| JEL: | J16 J21 J68 I10 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2021-013&r=all |
| By: | Bellemare, Charles (Université Laval); Kyui, Natalia (Bank of Canada); Lacroix, Guy (Université Laval) |
| Abstract: | We show that survey and administrative data-based estimates of a panel data model of earnings, employment, and outmigration yield very different qualitative and quantitative predictions. Survey-based estimates substantially overpredict outmigration, in particular for lower performing immigrants. Consequently, employment and earnings of immigrants who remain in the country are overpredicted relative to model predictions from administrative data. Importantly, estimates from both data sources find opposite self-selection mechanisms into outmigration. Differences hold despite using the same cohort, survey period, and observable characteristics. Differences in predictions are driven by difficulties of properly separating non-random sample attrition from selective outmigration in survey data. |
| Keywords: | sample attrition, outmigration, measurement errors, employment and earnings |
| JEL: | C33 J31 J15 J61 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14217&r=all |
| By: | Rafael Dix-Carneiro; Joao Paulo Pessoa; Ricardo Reyes-Heroles; Sharon Traiberman |
| Abstract: | We study the role of global trade imbalances in shaping the adjustment dynamics in response to trade shocks. We build and estimate a general equilibrium, multi-country, multi-sector model of trade with two key ingredients: (a) Consumption-saving decisions in each country commanded by representative households, leading to endogenous trade imbalances; (b) labor market frictions across and within sectors, leading to unemployment dynamics and sluggish transitions to shocks. We use the estimated model to study the behavior of labor markets in response to globalization shocks, including shocks to technology, trade costs, and inter-temporal preferences (savings gluts). We find that modeling trade imbalances changes both qualitatively and quantitatively the short- and long-run implications of globalization shocks for labor reallocation and unemployment dynamics. In a series of empirical applications, we study the labor market effects of shocks accrued to the global economy, their implications for the gains from trade, and we revisit the "China Shock" through the lens of our model. We show that the US enjoys a 2.2% gain in response to globalization shocks. These gains would have been 73% larger in the absence of the global savings glut, but they would have been 40% smaller in a balanced-trade world. |
| Keywords: | global trade imbalances, labor market disruption |
| JEL: | F16 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1754&r=all |
| By: | Gaurav Khanna; Wenquan Liang; Ahmed Mushfiq Mobarak; Ran Song |
| Abstract: | Migration and pollution are two defining features of China's impressive growth performance over the last 30 years. In this paper we study the migration response to pollution in Chinese cities, and its consequences for productivity and welfare. We document a robust pattern in which skilled workers emigrate more in response to pollution than the unskilled. Their greater sensitivity to air quality holds up in cross-sectional variation across cities, panel variation with individual fixed-effects, and when instrumenting for pollution using distant power-plants upwind of cities, or thermal inversions that trap pollution. Pollution therefore changes the spatial distribution of skilled and unskilled workers, which results in higher returns to skill in cities that the educated migrate away from. We quantify the loss in aggregate productivity due to this re-sorting by estimating a model of demand and supply of skilled and unskilled workers across Chinese cities. Counterfactual simulations from the estimated model show that reducing pollution would increase productivity through spatial re-sorting by approximately as much as the direct health benefits of clean air. Physical and institutional restrictions on mobility exacerbate welfare losses. People's dislike of pollution explains a substantial portion of the wage gap between cities. |
| JEL: | E24 J61 O18 Q52 R12 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28401&r=all |
| By: | Julia Heinzel; Rebecca Heller; Natalie Tawil |
| Abstract: | The Congressional Budget Office recently adapted a methodology to estimate, on an annual basis, the total number of people in the United States without legal status and to assign legal status to the foreign-born population in survey data to match those annual totals. This paper describes CBO’s methodology, the analytical choices made in developing that methodology, and the sensitivity of the outcomes to alternative choices. |
| JEL: | J15 J21 J60 |
| Date: | 2021–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:wpaper:57022&r=all |
| By: | Benjamin Lochner (University of Erlangen-Nuremberg and Institute for Employment Research (IAB)); Bastian Schulz (Department of Economics and Business Economics, the Dale T. Mortensen Centre, Aarhus University and CESifo) |
| Abstract: | We study the link between firms’ productivity and the wages firms pay. Guided by labor market sorting theory, we infer firm productivity from estimating firm-level production functions, taking into account that worker ability and firm productivity may interact at the match level. Using German data, we find that high wages are not necessarily a reflection of high firm productivity. Observed worker transitions towards higher wages are sometimes directed downwards on the firm-productivity ladder. Worker sorting into high-productivity firms is thus less pronounced than sorting into high-wage firms. Consequently, an implication of increasing wage sorting could be decreasing allocative efficiency. |
| Keywords: | Assortative Matching, Labor Market Sorting, Wage Inequality, Job Mobility, Unobserved Heterogeneity, Firm Productivity, Production Function Estimation |
| JEL: | J24 J31 J40 J62 J64 L25 |
| Date: | 2021–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2021-04&r=all |
| By: | Brigitte Hochmuth; Britta Kohlbrecher; Christian Merkl; Hermann Gartner |
| Abstract: | This paper proposes a new approach to evaluate the macroeconomic effects of the “Hartz IV” reform, which reduced the generosity of long-term unemployment benefits. We propose a model with different unemployment durations, where the reform initiates both a partial effect and an equilibrium effect. We estimate the relative importance of these two effects and the size of the partial effect based on the IAB Job Vacancy Survey. Our approach does not hinge on an external source for the decline in the replacement rate for long-term unemployed. We find that Hartz IV was a major driver for the decline of Germany’s steady state unemployment and that partial and equilibrium effect were nearly of equal importance. In addition, we provide direct empirical evidence on labor selection, one potential dimension of recruiting intensity. |
| Keywords: | unemployment benefits reform, search and matching, Hartz reforms |
| JEL: | E24 E00 E60 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8933&r=all |
| By: | Reuschke, Darja (University of St. Andrews); Henley, Andrew (Cardiff University); Daniel, Elizabeth (The Open University); Price, Victoria (University of Southampton) |
| Abstract: | This paper investigates whether the female self-employed are more affected by the COVID-19 crisis than the male self-employed using longitudinal data four months following the first 'lockdown' in the UK. We specifically test the role of family/social, economic and psychological factors on gendered differential impact. We find that self-employment exits are not gendered but women are more likely to experience reductions in hours worked and earnings. This greater adverse impact on women's working hours and earnings is despite family responsibilities and home-schooling, industrial gender segregation and women's greater propensity to run a non-employing business and to work part-time. However, lower attitude to risk in women is associated with lower risk of reduction in earnings. Policy needs to look beyond business exits when considering crisis support for the self-employed. |
| Keywords: | entrepreneurship, self-employment, COVID-19, gender, labour supply |
| JEL: | J16 J22 L26 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14216&r=all |
| By: | Emilia Barili (University of Genoa); Veronica Grembi (University of Milan); Anna Rosso (University of Milan) |
| Abstract: | Relying on a survey of more than 4,000 female respondents, we investigate the main determinants of women's mental distress during the first wave of the COVID-19 pandemic in Italy. We focus on two groups of variables to capture both the health and the economic emergency: present concerns and future expectations. Our results show that the main predictors of mental health are future expectations, such as the fear of losing a job, which is more relevant than concerns related to the spread of the virus. Younger women (less than 35), those lacking a high school degree, and those working in education or in remote work with school-aged children are in most distress. Using a panel fixed effects model that includes respondents to a re-call run in February 2021, we show that there was no adjustment to the new normal. Finally, using data on gender norms, we show that where the role of women is conceived in a more traditional way, the level of mental distress as driven by future employment is lower, suggesting that women's expectations for their role in society do play a relevant role in self-assessed well-being. |
| Keywords: | Mental health, COVID-19, Expectations, Gender Stereotypes |
| JEL: | I1 I12 J16 |
| Date: | 2021–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:470&r=all |
| By: | Mattia Filomena (Dipartimento di Scienze Economiche e Sociali - Universita' Politecnica delle Marche) |
| Abstract: | This article reviews the empirical literature on unemployment scarring effects. Our goal is twofold: on the one hand, to present an overview of empirical evidence relating to the impact of unemployment spells on subsequent labour market career; on the other hand, to provide a review of the econometric strategies mainly adopted to estimate the causal impact of such unemployment episodes. Focusing on a final sample of 63 papers, the empirical evidence appears homogeneous in highlighting significant and persistent wage losses and strong state dependence. |
| Keywords: | Unemployment scarring effects; state dependence; wage penalties; causal inference; literature review |
| JEL: | J08 J31 J64 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:453&r=all |
| By: | Kyyrä, Tomi |
| Abstract: | Many countries have a two-tiered unemployment compensation system which provides earnings-related unemployment insurance for a limited period of time and less generous unemployment assistance thereafter. This study evaluates the effects of a reform in Finland that increased the level of unemployment assistance by 22%. The reform led to a drop of 9% in the unemployment exit hazard, which can be attributed to fewer exits to both employment and inactivity. The implied elasticities suggest that a 10% increase in unemployment assistance reduces the unemployment exit hazard by 4% and the job finding hazard by 6%. These effects are relatively small compared to the existing evidence on the effects of unemployment insurance benefits. |
| Keywords: | unemployment assistance, labor market subsidy, hazard rate, unemployment duration, Social security, taxation and inequality, Labour markets and education, J64, J68, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:143&r=all |
| By: | Lopez-Acevedo, Gladys (World Bank); Devoto, Florencia (World Bank); Morales, Matias (World Bank); Roche Rodriguez, Jaime (World Bank) |
| Abstract: | The U-shape theory argues that at early stages of development, countries experience a reduction in the female labor force participation, eventually followed by a recovery. In Morocco, female labor force participation is now lower than it was two decades ago due to several factors that are discussed in the paper. There is also a persistent 50-percentage-points gender gap in labor force participation rates, despite improvements typically related to development and female inclusion—such as a higher gross domestic product per capita, lower fertility rates, and better access to education. At the same time, urban job creation has not been able to offset rural job destruction nor the increase in the working age population for both genders. Using data from the Moroccan Labor Force Survey, the World Values Survey, and the Arab Barometer, probit models and a multinomial logit are estimated to explore the challenges affecting female insertion into the labor market. The findings show that higher educational attainment increases the probability of female participation, but this relationship has decreased over time, not being enough to offset other obstacles caused by other individual and household characteristics. Being married and the presence of other inactive women are found to decrease female participation. The educational level of the head of household (typically men) increases female inactivity, suggesting that potentially gender roles may drive women out of the labor market and slow the recovery in women's participation. |
| Keywords: | Morocco, female, labor force participation |
| JEL: | J16 J21 O54 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14218&r=all |
| By: | Jung, Philip (TU Dortmund); Korfmann, Philipp (TU Dortmund); Preugschat, Edgar |
| Abstract: | We document large and persistent spatial dispersion in unemployment rates, vacancies, labor market tightness, labor market flows, and wages for Germany on a granular regional level. We show that in the 1990s differences in inflows from employment to unemployment were the key driver of regional dispersion in unemployment rates while in the 2000s outflows became more important. To account for the documented regional dispersion we develop a spatial search and matching model with risk-averse agents, endogenous separations and unobservable search effort that leads to moral hazard and quantify the relative importance of 4 potential structural driving forces: dispersion in productivity, in the bargaining strength of workers, in idiosyncratic risk components and in regional matching efficiency. Based on region-specific estimates of these factors we then study the resulting policy trade-off between insurance, regional redistribution and efficiency. We design (optimal) region-specific labor market policies that can be implemented using hiring subsidies, layoff taxes, unemployment insurance benefits and transfers financed by social insurance contributions. We find that a move towards an optimal tax system that explicitly conditions on regional characteristics could lead to sizable welfare and employment gains. |
| Keywords: | optimal labor market policies, regional unemployment |
| JEL: | J50 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14204&r=all |
| By: | Wataru Kureishi; Hannah Paule-Paludkiewicz; Hitoshi Tsujiyama; Midori Wakabayashi |
| Abstract: | Most economic models assume that time preferences are stable over time, but the evidence on their long-term stability is lacking. We study whether and how time preferences change over the life cycle, exploiting representative long-term panel data. We provide new evidence that discount rates decrease with age and the decline is remarkably linear over the life cycle. Decreasing discounting helps a canonical life-cycle model to explain the household saving puzzles of undersaving when young and oversaving after retirement. Relative to the model with constant discounting, the model’s fit to consumption and asset data profiles improves by 40% and 30%, respectively. |
| Keywords: | time preferences, preference stability, discount rates, household saving puzzles |
| JEL: | D15 D91 E21 J10 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8935&r=all |
| By: | Jarkko Harju; Simon Jäger; Benjamin Schoefer |
| Abstract: | We estimate the effects of worker voice on job quality and separations. We leverage the 1991 introduction of worker representation on boards of Finnish firms with at least 150 employees. In contrast to exit-voice theory, our difference-in-differences design reveals no effects on voluntary job separations, and at most small positive effects on other measures of job quality (job security, health, subjective job quality, and wages). Worker voice slightly raised firm survival, productivity, and capital intensity. A 2008 introduction of shop-floor representation had similarly limited effects. Interviews and surveys indicate that worker representation facilitates information sharing rather than boosting labor’s power. |
| Keywords: | worker representation, job separation, job quality, wages, firm survival, productivity, capital intensity |
| JEL: | G30 J30 J50 J63 L22 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8936&r=all |
| By: | Ayşegül Şahin; Murat Tasci; Jin Yan |
| Abstract: | This paper presents a flow-based methodology for real-time unemployment rate projections and shows that this approach performed considerably better at the onset of the COVID-19 recession in the spring 2020 in predicting the peak unemployment rate as well as its rapid decline over the year. It presents an alternative scenario analysis for 2021 based on this methodology and argues that the unemployment rate is likely to decline to 5.4 percent by the end of 2021. The predictive power of the methodology comes from its combined use of real-time data with the flow approach. |
| JEL: | E24 E32 J6 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28445&r=all |
| By: | Lee, Hyun-Jung; Yoshikawa, Katsuhhiko; Harzing, Anne-Wil |
| Abstract: | lthough the country-of-origin effect on staffing practices of multinational corporations (MNCs) is well-known, its underlying mechanisms are under-theorized. Drawing on the cross-cultural management and comparative institutionalism literatures, we propose an overarching, theory-based framework with two mechanisms, dispositional and contextual, that might explain country-of-origin effects in MNCs’ use of parent-country nationals (PCNs) in their foreign subsidiaries’ top management teams. The tendency of MNCs from some home countries to staff these positions with PCNs is typically labeled as “ethnocentric”, a word imbued with negative intentions referring mainly to the dispositional rationale behind this staffing choice. However, fuzzy set qualitative comparative analysis (fsQCA) of staffing practices of MNCs from ten home countries shows that both mechanisms – dispositional and contextual – have considerable explanatory power. Our methodological approach enables us to analyze conceptually distinct, yet empirically intertwined, societal-level explanations as a pattern, and thus offers a viable solution to integrate different perspectives in international and comparative research. |
| Keywords: | ethnocentrism; country-of-origin effect; global staffing; multinational corporations (MNCs); fuzzy-set qualitative comparative analysis (fsQCA); SAGE |
| JEL: | R14 J01 |
| Date: | 2021–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:109011&r=all |
| By: | Giuntella, Osea (University of Pittsburgh); Rotunno, Lorenzo (Aix-Marseille University); Stella, Luca (Catholic University Milan) |
| Abstract: | Using longitudinal data from the German Socio-Economic Panel, we analyze the effects of exposure to trade on the fertility and marital behavior of German workers. We find that individuals working in sectors that were more affected by import competition from Eastern Europe and suffered worse labor market outcomes were less likely to have children. In contrast, workers in sectors that benefited from increased exports had better employment prospects and higher fertility. These effects are driven by low-educated and married men, and reflect changes in the likelihood of having any child (extensive margin). While among workers exposed to import competition there is evidence of some fertility postponement, we find a significant reduction of completed fertility. There is instead little evidence of any significant effect on marital behavior. |
| Keywords: | international trade, labor market outcomes, fertility, marriage |
| JEL: | F14 F16 J13 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14224&r=all |
| By: | Monroy-Gómez-Franco, Luis; Vélez-Grajales, Roberto; Yalonetzky, Gastón |
| Abstract: | We document the contribution of skin colour toward quantifying inequality of opportunity over a proxy indicator of wealth. Our Ferreira-Gignoux estimates of inequality of opportunity as a share of total wealth inequality show that once parental wealth is included as a circumstance variable, the share of inequality of opportunity rises above 40 per cent, overall and for every age cohort. By contrast, the contribution of skin tone to total inequality of opportunity remains minor throughout. |
| Keywords: | Inequality of opportunity, wealth index, ethnicity, Mexico. |
| JEL: | D30 D31 J15 O15 O54 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106605&r=all |
| By: | de la Croix, David (IRES/LIDAM, UCLouvain & CEPR, London); Goñi, Marc (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | We argue that the waning of nepotism in academia bolstered scientific production in pre-industrial Europe. We build a database of families of scholars (1088–1800), measure their scientific output, and develop a general method to disentangle nepotism from inherited human capital—two determinants of occupational persistence. This requires jointly addressing measurement error in human capital proxies and sample selection bias arising from nepotism. Our method exploits multi-generation correlations together with parent-child distributional differences to identify the structural parameters of a first-order Markov process of human capital transmission with nepotism. We find an intergenerational human capital elasticity of 0.59, higher than that suggested by parent-child elasticities, yet lower than multi-generation estimates ignoring nepotism. In early academia, 40 percent of scholars’ sons achieved their position because of nepotism. Nepotism was lower in science than in law and in Protestant than in Catholic institutions, and declined substantially during the Scientific Revolution and the Enlightenment—two periods of buoyant scientific advancement. |
| Keywords: | Intergenerational mobility; human capital transmission; nepotism; upper-tail human capital; pre-industrial Europe; simulated method of moments |
| JEL: | C31 E24 J10 |
| Date: | 2021–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2021_009&r=all |
| By: | Isil R. Yavuz (Bryant University); Berrak Bahadir (Department of Economics, Florida International University) |
| Abstract: | This paper examines the moderating influence of home country ethnic diversity in the relationship between migrant remittances and new business creation in developing countries. By employing the theories of transaction cost, social network, social identity, and trust, we argue that ethnic diversity is negatively associated with new business creation; nevertheless, it strengthens the positive association between migrant remittances and new business creation in developing countries. We test our hypotheses on 64 developing countries over an 11-year period (2006-2016). This paper contributes to entrepreneurship literature by emphasizing the importance of home country ethnic diversity in channeling migrants’ remittances to new business creation in developing countries. |
| Keywords: | Migrant Remittances, New Business Creation, Ethnic Diversity, Developing Countries |
| JEL: | L26 M13 J15 F24 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:2110&r=all |
| By: | Cunningham, Jamein (University of Memphis); Feir, Donna (University of Victoria); Gillezeau, Rob (University of Victoria) |
| Abstract: | Do collective bargaining rights for law enforcement result in more civilian deaths at the hands of the police? Using an event-study design, we find that the introduction of duty to bargain requirements with police unions has led to a significant increase in non-white civilian deaths at the hands of police during the late twentieth century. We find no impact on various crime rate measures and suggestive evidence of a decline in police employment, consistent with increasing compensation. Our results indicate that the adoption of collective bargaining rights for law enforcement can explain approximately 10 percent of the total non-white civilian deaths at the hands of law enforcement between 1959 and 1988. This effect is robust to a contiguous county approach, accounting for heterogeneity in treatment timing, and numerous other specifications. While the relationship between police unions and violence against civilians is not clear ex-ante, our results show that the popular notion that police unions exacerbate police violence is empirically grounded. |
| Keywords: | police unions, policing, deaths by legal intervention, collective bargaining, discrimination |
| JEL: | J15 K42 J45 J58 N3 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14208&r=all |