nep-lab New Economics Papers
on Labour Economics
Issue of 2021‒09‒27
twenty-two papers chosen by
Joseph Marchand
University of Alberta

  1. The Geography of Unemployment By Adrien Bilal
  2. The Gender Gap in Earnings Losses after Job Displacement By Hannah Illing; Johannes F. Schmieder; Simon Trenkle
  3. How effective are hiring subsidies to reduce long-term unemployment among prime-aged jobseekers? Evidence from Belgium By Sam Desiere; Bart Cockx
  4. Institutions, Holdup and Automation By Presidente, Giorgio
  5. A Second Chance? The Labor Market Outcomes of Reforming Access to Adult Education By Patrick Bennett; Richard Blundell; Kjell G. Salvanes
  6. Robots and Labor Regulation: A Cross-Country/Cross-Industry Analysis By Silvio Traverso; Massimiliano Vatiero; Enrico Zaninotto
  7. Does the Gender Mix Influence Collective Bargaining on Gender Equality? Evidence from France By Anne‐sophie Bruno; Nathalie Greenan; Jeremy Tanguy
  8. Gender identity and quality of employment By Estefanía Galván
  9. Maximum Employment and the Participation Cycle By Bart Hobijn; Ayşegül Şahin
  10. The Consequences of Chronic Pain in Mid-Life: Evidence from the National Child Development Survey By David G. Blanchflower; Alex Bryson
  11. At a Crossroads: The impact of abortion access on future economic outcomes By Kelly Jones
  12. Population growth and automation density: theory and cross-country evidence By Ana Lucia Abeliansky; Klaus Prettner
  13. Interactions amongst gender norms: Evidence from US couples By Estefanía Galván; Cecilia García-Peñalosa
  14. Gendered Language By Pamela Jakiela; Owen Ozier
  15. The Effect of Recent Technological Change on US Immigration Policy By Björn Brey
  16. Short- and Medium-term Effects of Parental Separation on Children’s Well-being. Evidence from Uruguay By Marisa Bucheli; Andrea Vigorito
  17. Longing for Which Home: Evidence from Global Aspirations to Stay, Return or Migrate Onwards By Els Bekaert; Amelie F. Constant; Killian Foubert; Ilse Ruyssen
  18. Perceptions of Racial Gaps, their Causes, and Ways to Reduce Them By Alberto Alesina; Matteo F. Ferroni; Stefanie Stantcheva
  19. Does Education Prevent Job Loss During Downturns? Evidence from Exogenous School Assignments and COVID-19 in Barbados By Diether W. Beuermann; Nicolas L. Bottan; Bridget Hoffmann; C. Kirabo Jackson; Diego A. Vera Cossio
  20. Intergenerational Mobility in American History: Accounting for Race and Measurement Error By Zachary Ward
  21. Methodology for Modelling Distributional Impacts of Emissions Budgets on Employment in New Zealand. By Lynn Riggs; Livvy Mitchell
  22. Australian age, period, cohort effects in the gender wage gap - 2001 to 2018 By Kamal, Mustafa; Blacklow, Paul

  1. By: Adrien Bilal
    Abstract: Unemployment rates differ widely across local labor markets. I offer new empirical evidence that high local unemployment emerges because of elevated local job losing rates. Local employers, rather than local workers, account for most of spatial gaps in job stability. I then propose a theory in which spatial differences in job loss arise endogenously, due to the spatial sorting of heterogeneous employers across local labor markets. Labor market frictions induce productive employers to over-value locating close to each other. The optimal policy incentivizes them to relocate to areas with high job losing rates, providing a rationale for commonly used place-based policies. I estimate the model using French administrative data. The estimated model accounts for over three fourths of the cross-sectional dispersion in unemployment rates, as well as for the respective contributions of job losing and job finding rates. Employers' inefficient location choices amplify spatial unemployment differentials five-fold. Both real-world and optimal place-based policies can yield sizable local and aggregate welfare gains.
    JEL: E20 E24 E60 F16 H21 J42 J61 J63 J64 R13 R23
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29269&r=
  2. By: Hannah Illing; Johannes F. Schmieder; Simon Trenkle
    Abstract: Existing research has shown that job displacement leads to large and persistent earnings losses for men, but evidence for women is scarce. Using administrative data from Germany, we apply an event study design in combination with propensity score matching and a reweighting technique to directly compare men and women who are displaced from similar jobs and firms. Our results show that after a mass layoff, women’s earnings losses are about 35% higher than men’s, with the gap persisting five years after job displacement. This is partly explained by a higher propensity of women to take up part-time or marginal employment following job loss, but even full-time wage losses are almost 50% (or 5 percentage points) higher for women than for men. We then show that on the household level there is no evidence of an added worker effect, independent of the gender of the job loser. Finally, we document that parenthood magnifies the gender gap sharply: while fathers of young children have smaller earnings losses than men in general, mothers of young children have much larger earnings losses than other women.
    JEL: J0 J16 J3 J63 J64 J65
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29251&r=
  3. By: Sam Desiere; Bart Cockx (-)
    Abstract: Hiring subsidies are widely used to create (stable) employment for the long-term unemployed. This paper exploits the abolition of a hiring subsidy targeted at long-term unemployed jobseekers over 45 years of age in Belgium to evaluate its effectiveness in the short and medium run. Based on a triple difference methodology the hiring subsidy is shown to increase the job finding rate by 13% without any evidence of spill-over effects. This effect is driven by a positive effect on individuals with at least a bachelor’s degree. However, the hiring subsidy mainly created temporary short-lived employment: eligible jobseekers were not more likely to find employment that lasted at least twelve consecutive months than ineligible jobseekers.
    Keywords: hiring subsidies, long-term unemployment, prime-aged jobseekers, triple difference, temporary help agencies
    JEL: H22 J08 J18 J23 J38 J64 J65 J68
    Date: 2021–08
    URL: http://d.repec.org/n?u=RePEc:rug:rugwps:21/1025&r=
  4. By: Presidente, Giorgio
    Abstract: What drives investment in automation technologies? This paper documents a positive relationship between labor-friendly institutions and investment in industrial robots in a sample of developing and advanced economies. Institutions explain a substantial share of cross-country variation in automation. The relationship between institutions and robots is stronger in sunk cost-intensive industries, where producers are vulnerable to holdup. The result suggests that one reason for producers to invest in automation is to thwart rent appropriation by labor. As a consequence, policies aimed at supporting workers’ welfare by increasing their bargaining power might actually reduce their employment opportunities.
    Keywords: Robots,Institutions,automation,holdup,unions,sunk costs,appropriability,bargaining,frictions,rents,technology adoption
    JEL: O32 O33 L16 J50 O57
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:esprep:242475&r=
  5. By: Patrick Bennett; Richard Blundell; Kjell G. Salvanes
    Abstract: Developing effective tools to address prime-aged high school dropouts is a key policy question. We leverage high quality Norwegian register data to examine the labour market outcomes of expanding access to adult workers and exploit a large policy reform which greatly enabled access to high school education for adults. Our focus is on women and the results show a large and significant increase in education investments with a strong rise in the rate of college completion, leading to higher earnings, increased employment, and decreased fertility. They also point to an effective policy to reduce the gender earnings gap.
    Keywords: adult education, returns to education, fertility, gender inequality
    JEL: I26 I28 J13
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9306&r=
  6. By: Silvio Traverso; Massimiliano Vatiero; Enrico Zaninotto
    Abstract: This work discusses and empirically investigates the relationship between labor regulation and robotization. In particular, the empirical analysis focuses on the relationship between the discipline of workers’ dismissal and the adoption of indus- trial robots in nineteen Western countries over the 2006–2016 period. We find that high levels of statutory employment protection have been negatively associated with robot adoption, suggesting that labor-friendly national legislations, by increasing adjustment costs (such as firing costs), and thus making investment riskier, provide less favorable environments for firms to invest in industrial robots. We also find, however, that the correlation is positively mediated by the sectoral levels of capital intensity, a hint that firms do resort to industrial robots as potential substitutes for workers to reduce employees’ bargaining power and to limit their hold-up opportu- nities, which tend to be larger in sectors characterized by high levels of operating leverage.
    Keywords: Robot adoption, Labor regulation, Hold-up
    JEL: K31 O31
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:trn:utwprg:2021/12&r=
  7. By: Anne‐sophie Bruno (CHS - Centre d'histoire sociale des mondes contemporains - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Nathalie Greenan (TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique, CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM]); Jeremy Tanguy (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Gender equality at work has become in recent years a priority for governments. In France, collective bargaining is the main lever to achieve progress on gender equality issues. In a two-tier bargaining framework, industries and firms are required by law to negotiate on the reduction of gender inequalities. Using firmlevel survey data on labor relations issues combined with administrative data, this paper seeks to better understand the dynamics of collective bargaining on gender equality at the firm level by questioning the role played by the gender mix. We find that gender diversity favors gender equality bargaining at the firm level. Underrepresentation and overrepresentation of women reduce the probability of firms negotiating an agreement on gender equality. The introduction of sanctions in the recent period has prompted low-feminized firms to negotiate more on gender equality but had little impact on highly feminized firms.
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03345516&r=
  8. By: Estefanía Galván (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: Studies for high-income countries have shown that the prescription that a man should earn more than his wife holds back women’s performance in the labour market, evidencing the importance of gender identity norms in explaining persistent gender gaps. Using data on couples in Uruguay for the period 1986-2016, this paper analyses behavioural responses to the male breadwinner norm, investigating the role of job informality as an additional mechanism of response to gender norms. My results show that the higher the probability that the wife earns more than her husband, the less likely she is to engage in a formal job, providing evidence that gender norms affect not only the quantity of labour supply (i.e. labour force participation and hours of work), but also the quality of jobs in which women are employed. Moreover, I also identify meaningful effects of the norm on men: those with lower potential earnings than their wives react to the norm by self-selecting into better-paid formal jobs. Not considering these effects would lead to underestimate the consequences of gender norms on labour market inequalities in the context of developing countries.
    Keywords: gender identity, social norms, informality, labour supply, housework.
    JEL: D13 J16 J22
    Date: 2021–08
    URL: http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-14-21&r=
  9. By: Bart Hobijn; Ayşegül Şahin
    Abstract: We investigate the source, magnitude, and unevenness of the procyclical forces that shape labor force participation, i.e., the participation cycle, which are important for the implementation of the maximum employment mandate. We show that these forces can be analyzed in real time using a flow decomposition of the changes in the labor force participation rate. The decomposition reveals that the source of the participation cycle is fluctuations in job-loss and job-finding rates, rather than cyclical movements in labor force entry and exit rates. The magnitude of the participation cycle is large. Cyclical downward pressures on employment from participation are two-thirds that of unemployment. Moreover, the participation cycle delays the recovery in employment because it lags the unemployment cycle. It also amplifies the unevenness of the impact of recessions. Groups that see large increases in their unemployment rates also experience more pronounced participation cycles. Despite differences in their magnitudes, the source of the participation cycle is the same for all groups. Application of our method to the COVID-19 Recession suggests that, as of June 2021, the bulk of the drop in the participation rate since the onset of the pandemic is cyclical and that the cyclical recovery in participation likely will trail that of the unemployment rate.
    JEL: J20 J6
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29222&r=
  10. By: David G. Blanchflower; Alex Bryson
    Abstract: Using data from all those born in a single week in 1958 in Britain we track the consequences of short pain and chronic pain in mid-life (age 44) on health, wellbeing and labor market outcomes in later life. We examine data taken at age 50 in 2008, when the Great Recession hit and then five years later at age 55 in 2013. We find those suffering both short-term and chronic pain at age 44 continue to report pain and poor general health in their 50s. However, the associations are much stronger for those with chronic pain. Furthermore, chronic pain at age 44 is associated with a range of poor mental health outcomes, pessimism about the future and joblessness at age 55 whereas short-duration pain at age 44 is not. Uniquely, we also show that pain experienced in childhood, at ages 11 and 16, reported by a parent and a teacher respectively, collected decades earlier, predicts pain in mid-life, indicating just how persistent pain can be over the life-course.
    JEL: I12 I31
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29278&r=
  11. By: Kelly Jones
    Abstract: An unintended birth at an early age has the potential to interrupt a woman’s education, with implications for her future career and earnings. This paper investigates the impact of abortion access on women’s economic outcomes later in life. I corroborate earlier findings that abortion access during adolescence and early adulthood reduces early births. I then offer updated evidence that, controlling for contraception access, abortion access increases educa¬tional attainment, career outcomes and earnings of black women and reduces their poverty and reliance on public assistance. Findings suggest that fertility is a significant pathway by which abortion access affects work status and family income, but that other pathways such as expectations and investment in human capital are more relevant for occupational choice and personal earnings.
    Keywords: fertility, family planning, abortion, economics of gender
    JEL: J13 I2 J24 J16 N32
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:amu:wpaper:2021-02&r=
  12. By: Ana Lucia Abeliansky (Department of Economics, Vienna University of Economics and Business); Klaus Prettner (Department of Economics, Vienna University of Economics and Business)
    Abstract: We analyze the effects of declining population growth on automation. Theoretical considerations imply that countries with lower population growth introduce automation technologies faster. We test the theoretical implication on panel data for 60 countries over the time span 1993-2013. Regression estimates support the theoretical implication, suggesting that a 1% increase in population growth is associated with an approximately 2% reduction in the growth rate of robot density. Our results are robust to the inclusion of standard control variables, different estimation methods, dynamic specifications, and changes with respect to the measurement of the stock of robots.
    Keywords: Automation, Industrial Robots, Demographic Change, Declining Fertility
    JEL: J11 O33 O40
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp315&r=
  13. By: Estefanía Galván (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Cecilia García-Peñalosa (Aix-Marseille Université (Francia).CNRS, EHESS, AMSE, CEPR & CESifo)
    Abstract: Gendered norms have major implications for women’s labor market outcomes. Notably, a recent literature finds that child-rearing norms and the prescription that the husband should be the main breadwinner lead to behavioral changes affecting women's labor supply. Motherhood reduces participation and hours of market work, while women who earn more than their husbands have been shown to react in ways that reverse that gap. In this paper we use panel data for the US to examine to what extent these two different norms interact. We start by asking whether child-rearing norms affect women who are the main breadwinner and those who are not in the same way, and then turn to how mothers and childless women react when breaking the male-as-the-breadwinner norm. Our results show that the breadwinner norm has an effect only on mothers, suggesting that the salience of gender norms may depend on the household's context. Concerning child-rearing, we find that although the labor supply of women who earn more than their husbands initially responds to motherhood less than that of secondary earners, the two groups converge after 10 years. Moreover, women in the former category exhibit a disproportionately large increases in the share of housework they perform after becoming mothers. These results indicate that norms still prevail over considerations of comparative advantage, and that the presence of children pushes women to seek to compensate breaking a norm by adhering to another one.
    Keywords: gender identity norms, female labor supply, motherhood, relative income
    JEL: D10 J16 J22
    Date: 2021–08
    URL: http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-15-21&r=
  14. By: Pamela Jakiela (Williams College); Owen Ozier (Williams College)
    Abstract: Languages use different systems for classifying nouns. Gender languages assign nouns to distinct sex-based categories, masculine and feminine. We construct a new data set, documenting the presence or absence of grammatical gender in more than 4,000 languages which together account for more than 99% of the world’s population. We find a robust negative relationship between prevalence of gender languages and women’s labor force participation and educational attainment both across and within countries. We also demonstrate that grammatical gender is associated with both weaker legal support for women’s equality and reduced female bargaining power within the household.
    Keywords: grammatical gender, language, gender, linguistic determinism, labor force participation, gender gaps
    JEL: J16 Z10 Z13
    Date: 2021–07–31
    URL: http://d.repec.org/n?u=RePEc:wil:wileco:2021-13&r=
  15. By: Björn Brey
    Abstract: Did recent technological change, in the form of automation, affect immigration policy in the United States? I argue that as automation shifted employment from routine to manual occupations at the bottom end of the skill distribution, it increased competition between natives and immigrants, consequently leading to increased support for restricting low-skill immigration. I formalise this hypothesis theoretically in a partial equilibrium model with constant elasticity of substitution in which technology leads to employment polarization, and policy makers can vote on immigration legislation. I empirically evaluate these predictions by analysing voting on low-skill immigration bills in the House of Representatives during the period 1973-2014. First, I find evidence that policy makers who represent congressional districts with a higher share of manual employment are more likely to support restricting low-skill immigration. Second, I provide empirical evidence that representatives of districts which experienced more manual-biased technological change are more likely to support restricting low-skill immigration. Finally, I provide evidence that this did not affect trade policy, which is in line with automation having increased employment in occupations exposed to low-skill immigration, but not those exposed to international trade.
    Keywords: political economy, voting, immigration policy, technological change
    JEL: F22 J61 K37 O30
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9302&r=
  16. By: Marisa Bucheli (Universidad de la República (Uruguay). Facultad de Ciencias Sociales, Departamento de Economía.); Andrea Vigorito (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: There is limited quantitative research on the effect of parental union dissolution on children’s well-being in developing countries. Based on three waves of a longitudinal study that follows up a cohort of Uruguayan children from age 6 to 19, we study the short- and medium-term effects of parental separation on school attendance, grade repetition, completed years of schooling, socio-emotional status, time devoted to a wide set of activities, and labour force participation. We carry out a fixed effect estimation comparing children from married or cohabiting couples that remained together versus a similar group that split after 2004. We find evidence that union dissolution worsens child educational outcomes in the short and medium term. Meanwhile, at age 19, socio-emotional well-being, labour force participation and worked hours remain unchanged. Although effects by gender and timing of the divorce (childhood or adolescence) are similar in the short term, at age 19 girls’ educational outcomes are almost unaffected. We do not find robust differences related to child support payments and contact with co-resident fathers. We also explore a set of potential moderators, such as household income, maternal employment, access to durable goods and public transfers, which suggest that worsened educational outcomes are closely connected to post-separation economic hardship.
    Keywords: union dissolution; child support; education; socio-emotional well-being; Uruguay; panel data
    JEL: J12 J13 I30
    Date: 2021–07
    URL: http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-09-21&r=
  17. By: Els Bekaert; Amelie F. Constant; Killian Foubert; Ilse Ruyssen
    Abstract: Aspirations provide the underlying dynamics of the behavior of individuals whether they are realized or not. Knowledge about the characteristics and motives of those who aspire to leave the host country is key for both host and home countries to formulate appropriate and effective policies in order to keep their valued immigrants or citizens and foster their (re-)integration. Based on unique individual-level Gallup World Polls data, a random utility model, and a multinomial logit we model the aspirations or stated preferences of immigrants across 138 countries worldwide. Our analysis reveals selection in characteristics, a strong role for soft factors like social ties and sociocultural integration, and a faint role for economic factors. Changes in circumstances in the home and host countries are also important determinants of aspirations. Results differ by the host countries’ level of economic development.
    Keywords: economics of immigrants, geographic labor mobility, public policy, microeconomic behaviour, underlying principles, international migration, large data sets, modelling and analysis
    JEL: J15 J61 J68 D01 F22 C55
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9301&r=
  18. By: Alberto Alesina; Matteo F. Ferroni; Stefanie Stantcheva
    Abstract: Using new large-scale survey and experimental data, we investigate how respondents perceive racial inequities between Black and white Americans, what they believe causes them, and what interventions, if any, they think should be implemented to reduce them. We intentionally oversample Black respondents, cover many cities in the US, and survey both adults and very young people aged 13 to 17. In the experimental parts, we consider the causal impact of information on racial inequities (such as the evolution of the Black-white earnings gap or the differences in mobility for Black and white children) and explanations for these inequities (i.e., the deep-seated roots and long-lasting consequences of systemic racism) on respondents' views. Although there is heterogeneity in how respondents perceive the magnitude of current racial gaps in economic conditions and opportunities, the biggest discrepancies are in how they explain them. There is a stark partisan gap among white respondents, particularly in the perceived causes of racial inequities and what should be done about them. White Democrats and Black respondents are much more likely to attribute racial inequities to adverse past and present circumstances and want to act on them with race-targeted and general redistribution policies. At the same time, white Republicans are more likely to attribute racial gaps to individual actions. These views are already deeply entrenched in teenagers based on their race and their parents' political affiliation. A policy decomposition shows that the perceived causes of racial inequities correlate most strongly with support for race-targeted or general redistribution policies, a finding confirmed by the experimental results.
    JEL: D31 D72 H23 H24 H41 J15 P16
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29245&r=
  19. By: Diether W. Beuermann; Nicolas L. Bottan; Bridget Hoffmann; C. Kirabo Jackson; Diego A. Vera Cossio
    Abstract: Canonical human capital theories posit that education, by enhancing worker skills, reduces the likelihood that a worker will be laid-off during times of economic change. Yet, this has not been demonstrated causally. We link administrative education records from 1987 through 2002 to nationally representative surveys conducted before and after COVID-19 onset in Barbados to explore the causal impact of improved education on job loss during this period. Using a regression discontinuity (RD) design, Beuermann and Jackson (2020) show that females (but not males) who score just above the admission threshold for more selective schools in Barbados attain more years of education than those that scored just below (essentially holding initial ability fixed). Here, in follow-up data, we show that these same females (but not males) are much less likely to have lost a job after the onset of COVID-19. We show that these effects are not driven by sectoral changes, or changes in labor supply. Because employers observe incumbent worker productivity, these patterns are inconsistent with pure education signalling, and suggest that education enhances worker skill.
    JEL: H0 I2 J0
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29231&r=
  20. By: Zachary Ward
    Abstract: A large body of evidence finds that relative mobility in the US has declined over the past 150 years. However, long-run mobility estimates are usually based on white samples and therefore do not account for the limited opportunities available for non-white families. Moreover, historical data measure the father’s status with error, which biases estimates toward greater mobility. Using linked census data from 1850-1940, I show that accounting for race and measurement error can double estimates of intergenerational persistence. Updated estimates imply that there is greater equality of opportunity today than in the past, mostly because opportunity was never that equal.
    JEL: J62 N31 N32
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29256&r=
  21. By: Lynn Riggs (Motu Economic and Public Policy Research); Livvy Mitchell (Motu Economic and Public Policy Research)
    Abstract: Efforts to reduce emissions to counter climate change are expected to have both costs and benefits, and these effects are likely to be unevenly distributed across the population. Hence, we developed the Distributional Impacts Microsimulation for Employment (DIM-E) to examine the potential distributional employment impacts for different mitigation options to reduce greenhouse gas emissions. DIM-E is comprised of two main components: the first component estimates industry-level employment effects, and the second simulates the characteristics of impacted workers and jobs. We based DIM-E on results from a computable general equilibrium (CGE) model, C-PLAN, and applied them to more detailed employment information in order to better understand the extent to which industries, jobs and workers are likely to be impacted by the different pathways. It is possible, however, for DIM-E to be used to analyse any policy scenario and its baseline using employment indices and similar employment information. In this paper, we describe DIM-E in the context of the initial case for which it was developed – to analyse emissions budgets for greenhouse gasses to be set by the New Zealand government for three time periods (2022-2025, 2026-2030, and 2031-2035). We also provide a sampling of results from this initial case in order to put the methodology into context. Hence, we show that DIM-E can be used to examine changes in employment trends due to policy changes as well as the different types of workers that are most likely to be affected by the reallocation of employment across industries. We found that the DIM-E results produced for the initial case were in line with previous research in this area – the overall net industry employment effects were predicted to be relatively small, though some industries will be more affected than others especially in the short- and medium-term. Moreover, very few worker groups would be negatively affected (in terms of the number of jobs) by any of the proposed mitigation options especially over the long term.
    Keywords: Environmental Economics, Climate Change Mitigation, Distributional Impacts of Employment
    JEL: J01 Q52 R11
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:mtu:wpaper:21_14&r=
  22. By: Kamal, Mustafa (Tasmanian School of Business & Economics, University of Tasmania); Blacklow, Paul (Tasmanian School of Business & Economics, University of Tasmania)
    Abstract: This paper simultaneously examines the effects of age, period and birth cohort on the evolution of the Australian gender wage gap from 2001-18. It employs the proxy variable approach within the Mincerian earnings function to overcome the Age-Period-Cohort (APC) identification problem while also controlling for employment selection and individual human capital accumulation. The paper corroborates previous evidence of a widening gender wage gap with age. It also provides new evidence of period effects suppressing female wage rates compared to male rates. However, as opposed to expectations, the study finds no significant influence of birth cohort effects on the Australian gender wage gap. The results also suggest that the failure to control for period effects can lead to significant cohort effects or substantial overestimation of age or cohort effects on wages. The findings of the paper have implications for a range of studies that employ Mincer-type earnings functions in addition to policy implications.
    Keywords: gender, wage gap, age, period, cohort, Australia
    JEL: C33 J16 J31
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:tas:wpaper:37327&r=

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