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on Labour Economics |
| By: | Tushar Bharati (Business School, The University of Western Australia); Wina Yoman (Bain & Company) |
| Abstract: | We study the labor market effects of domestic migration in Indonesia on the employment outcomes of the natives and the migrants. To address the endogeneity of migrants’ settlement decisions, we use the information on the historical migration patterns from the Indonesian censuses to construct an internal migration version of the Bartik shift-share instrument. The instrument, used widely in the study of international migration, is based on the observation that even within countries, migrants tend to move to regions with a large migrant population from their region of origin. However, if the migration patterns are unchanged over time, past migration may affect current labor market outcomes directly, violating the exclusion restriction. To overcome this, we use a multi-instrument approach that lets us account for the long-term effects of migration separately. We find that internal migration is associated with an increase in migrant employment and a decrease in native employment. Less-educated natives in loweducation regencies are most-affected. The findings suggest that policies aiming to minimize the adverse effects of internal migration should aim at improving the human capital of natives. |
| Keywords: | shift-share instrument, internal migration, employment, natives |
| JEL: | C36 E24 J61 O15 R23 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:21-05&r=all |
| By: | Morgan Raux (Department of Economics and Management, Université du Luxembourg) |
| Abstract: | In this paper, I investigate how cultural differences affect the labor-market performance of immigrant workers in Germany. I document a negative relationship between hourly wages and the cultural distance between immigrants' countries of origin and Germany. This result is robust across the three main indicators used in the gravity literature: linguistic, religious, and genetic distances. This cultural wage penalty disappears after five to ten years spent in Germany. Controlling for language proficiency as well as for selective in- and out-migration, these results highlight the cultural integration of immigrant workers. I finally provide evidence suggesting that lower wage progression may be explained by fewer job-to-job transitions. |
| Keywords: | Cultural distance, Immigrant Workers. |
| JEL: | J61 Z10 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:21-02&r=all |
| By: | Joshua Weitz (Brown University); William Lazonick (University of Massachusetts Lowell); Philip Moss (University of Massachusetts Lowell) |
| Abstract: | As the Covid-19 pandemic takes its disproportionate toll on African Americans, the historical perspective in this working paper provides insight into the socioeconomic conditions under which President-elect Joe Biden’s campaign promise to “build back better” might actually begin to deliver the equal employment opportunity that was promised by Title VII of the Civil Rights Act of 1964. Far from becoming the Great Society that President Lyndon Johnson promised, the United States has devolved into a greedy society in which economic inequality has run rampant, leaving most African Americans behind. In this installment of our 'Fifty Years After' project, we sketch a long-term historical perspective on the Black employment experience from the last decades of the nineteenth century into the 1970s. We follow the transition from the cotton economy of the post-slavery South to the migration that accelerated during World War I as large numbers of Blacks sought employment in mass-production industries in Northern cities such as Detroit, Pittsburgh, and Chicago. For the interwar decades, we focus in particular on the Black employment experience in the Detroit automobile industry. During World War II, especially under pressure from President Roosevelt’s Fair Employment Practices Committee, Blacks experienced tangible upward employment mobility, only to see much of it disappear with demobilization. In the 1960s and into the 1970s, however, supported by the Civil Rights Act and the Equal Employment Opportunity Commission, Blacks made significant advances in employment opportunity, especially by moving up the blue-collar occupational hierarchy into semiskilled and skilled unionized jobs. These employment gains for Blacks occurred within a specific historical context that included a) strong demand for blue-collar and clerical labor in the U.S. mass-production industries, which still dominated in global competition; b) the unquestioned employment norm within major U.S. business corporations of a career with one company, supported at the blue-collar level by mass-production unions that had become accepted institutions in the U.S. business system; c) the upward intergenerational mobility of white households from blue-collar employment requiring no more than a high-school education to white-collar employment requiring a higher education, creating space for Blacks to fill the blue-collar void; and d) a relative absence of an influx of immigrants as labor-market competition to Black employment. As we will document in the remaining papers in this series, from the 1980s these conditions changed dramatically, resulting in erosion of the blue-collar gains that Blacks had achieved in the 1960s and 1970s as the Great Society promise of equal employment opportunity for all Americans disappeared. |
| Keywords: | African American, employment relations, equal employment opportunity, unions, blue-collar, employment mobility, The Great Migration, New Deal, government employment |
| JEL: | D2 D3 G3 J0 L2 L6 N8 O3 P1 |
| Date: | 2021–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp143&r=all |
| By: | René Böheim; Michael Christl |
| Abstract: | During the last decade, the Beveridge curve in Austria shifted outwards. Using data on vacancies and registered unemployed, we test whether this shift was primarily caused by increased mismatch unemployment or by a labor supply shock. We find that the Beveridge curve shifted primarily because mismatch increased substantially. The increase is due to a substantial increase of mismatch unemployment for manual routine tasks. |
| Keywords: | Beveridge curve, unemployment, matching efficiency |
| JEL: | J21 J64 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2021-06&r=all |
| By: | Dahlberg, Matz (IFAU - Institute for Evaluation of Labour Market and Education Policy); Martén, Linna (Uppsala University); Öckert, Björn (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | A well-functioning labor market is characterized by job reallocations, but the individual costs can be vast. We examine if individual’s ability to cope with such adjustments depends on their cognitive and non-cognitive skills (measured by population-wide enlistment tests). Since selection into unemployment is a function of skills, we address the endogeneity of a job loss by exploiting the exogenous labor market shock provided by the military base closures in Sweden following the end of the Cold War. We find that labor earnings decrease and unemployment and social insurance benefits increase for displaced workers. In particular, individuals with high cognitive and, especially, non-cognitive skills face shorter unemployment spells than the individuals with low skills. |
| Keywords: | Cognitive and Non-cognitive skills; Displaced workers; Unemployment; Plant closure; Defense draw down |
| JEL: | H56 J63 J65 |
| Date: | 2021–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2021_002&r=all |
| By: | Bertocchi, Graziella (University of Modena and Reggio Emilia); Dimico, Arcangelo (Queen's University Belfast) |
| Abstract: | The mounting evidence on the demographics of COVID-19 fatalities points to an overrepresentation of minorities and an underrepresentation of women. Using individual-level, race-disaggregated, and georeferenced death data collected by the Cook County Medical Examiner, we jointly investigate the racial and gendered impact of COVID-19, its timing, and its determinants. Through an event study approach we establish that Blacks individuals are affected earlier and more harshly and that the effect is driven by Black women. Rather than comorbidity or aging, the Black female bias is associated with poverty and channeled by occupational segregation in the health care and transportation sectors and by commuting on public transport. Living arrangements and lack of health insurance are instead found uninfluential. The Black female bias is spatially concentrated in neighborhoods that were subject to historical redlining. |
| Keywords: | COVID-19, deaths, race, gender, occupations, transport, redlining, Cook County, Chicago |
| JEL: | I14 J15 J16 J21 R38 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14238&r=all |
| By: | Schubert, Torben (CIRCLE, Lund University) |
| Abstract: | The effects of establishing foreign-based subsidiaries on firm performance have long been debated, where empirical evidence hints at gains in terms of costs reductions, productivity or growth. Yet, little is known about the effects on innovative capabilities at the home base. Using a matched-employer-employee panel dataset of the Swedish Community Innovation Surveys (CIS) between 2008 and 2014, we estimate whether the employee share at subsidiaries abroad affects product innovation performance at home. Our results show the effects are positive on average. However, there is also evidence of detrimental effects of having employees abroad on innovation. In particular, for excessive shares of employees at foreign location, we provide evidence of an inverted u-shape between the probability to introduce product innovations and the share of foreign employment. Moreover, we show that the benefits of foreign employment are larger for firms with a more nationally diverse workforce at the home base. Our results are robust to a wide variety of robustness checks. |
| Keywords: | Internationalization; Innovation; Diversity |
| JEL: | M14 M16 O32 |
| Date: | 2021–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2021_003&r=all |
| By: | Mobarak, Ahmed Mushfiq (Yale University); Sharif, Iffath (World Bank); Shrestha, Maheshwor (World Bank) |
| Abstract: | We follow 3,512 (of 1.4 million) applicants to a government lottery that randomly allocated visas to Bangladeshis for low-skilled, temporary labor contracts in Malaysia. Most lottery winners migrate, and their remittance substantially raises their family's standard of living in Bangladesh. The migrant's absence pauses demographic changes (marriage, childbirth, household formation), and shifts decision-making power towards females. Migration removes enterprising individuals, lowering household entrepreneurship, but does not crowd out other family members' labor supply. One group of applicants were offered deferred migration that never materialized. Improved migration prospects induce pre-migration investments in skills that generate no returns in the domestic market. |
| Keywords: | government-intermediated international migration |
| JEL: | F22 O12 O15 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14232&r=all |
| By: | Daysal, N. Meltem (University of Copenhagen); Elder, Todd E. (Michigan State University); Hellerstein, Judith K. (University of Maryland); Imberman, Scott A. (Michigan State University); Orsini, Chiara (London School of Economics) |
| Abstract: | We use rich administrative data from Denmark to assess medical theories that autism spectrum disorder (ASD) is a heritable condition transmitted through underlying parental skills. Positing that occupational choices reflect skills, we create two separate occupation-based skill measures and find that these measures are associated with ASD incidence among children, especially through the father's side. We also assess the empirical relevance of assortative mating based on skill, concluding that intertemporal changes in assortative mating explain little of the increase in ASD diagnoses in recent decades. |
| Keywords: | parental skills, autism |
| JEL: | I1 J1 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14227&r=all |
| By: | Justus A. Baron; Bernhard Ganglmair; Nicola Persico; Timothy Simcoe; Emanuele Tarantino |
| Abstract: | Representation of women and minorities in a “selectorate”—the group that chooses an organization's leaders—is a key mechanism for promoting diversity. We show that representation, on its own, is not sufficient for selecting gender diversity: a supportive organizational culture is also required. In the case of the Internet Engineering Task Force, a random increase in female representation in its selection committee caused an increase in female appointments only after cultural norms supporting diversity and inclusion became more salient. |
| JEL: | D02 J16 J17 M14 O32 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28649&r=all |
| By: | van den Berg, Gerard J. (IFAU - Institute for Evaluation of Labour Market and Education Policy); Hofmann, Barbara (FEA Nuremberg); Stephan, Gesine (IAB Nuremberg); Uhlendorff, Arne (IAB Nuremberg) |
| Abstract: | Integration Agreement (IA) are contracts between the employment agency and the unemployed, nudging the latter to comply with rules on search behavior. We designed and implemented an RCT involving thousands of newly unemployed workers, randomizing at the individual level both the timing of the IA and whether it is announced in advance. Administrative registers provide outcomes. Novel theoretical and methodological analyses provide tools to detect anticipation and suggest estimation by individual baseline employability. A small positive effect on entering employment is driven by individuals with adverse prospects. For them, early IA increase re-employment within a year from 45% to 53%. |
| Keywords: | unemployment; monitoring; job search; active labor market policy; nudge; anticipation; randomized controlled trial |
| JEL: | C93 J64 J68 |
| Date: | 2021–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2021_004&r=all |
| By: | Anaïs A Périlleux; Ariane Szafarz |
| Abstract: | This paper argues that role modeling can explain the impact of boardroom gender diversity on corporate performance. It theorizes that female workers are boosted by female leadership, gain increased motivation, and achieve greater productivity, thereby making their female directors more effective. We test this bottom-up approach to the trickle-down hypothesis on data hand-collected among local cooperatives providing microcredit in Senegal. All the organizations surveyed are similar and small, which allows us to use a homogenous performance metric. All of them outsource their human resource management to the same third party, which mitigates the risk of endogeneity. The data cover over 100,000 triads composed of: gender dominance on the board, gender of CEO, and gender of credit officer. A better financial performance is achieved when the triad is gender-uniform—be it male or female—confirming the importance of role modeling and suggesting that the performance of female board members depends on the gender composition of the workforce. |
| Keywords: | Gender; Board; Trickle-Down Effect; CEO; Performance; Leadership |
| JEL: | M14 J82 M54 J54 O15 |
| Date: | 2021–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/320685&r=all |