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on Labour Economics |
| By: | Andrea Albanese; Adrián Nieto; Konstantinos Tatsiramos |
| Abstract: | We study the effect of childbirth on local and non-local employment dynamics for both men and women using Belgian social security and geo-location data. Applying an event-study design that accounts for treatment effect heterogeneity, we show that 75 percent of the effect of the birth of a first child on the overall gender gap in employment is accounted for by gender disparities in non-local employment, with mothers being more likely to give up non-local employment compared to fathers. This gender specialisation is mostly driven by opposing job location responses of men and women to individual, household and regional factors. On the one hand, men do not give up non-local employment after childbirth when they are employed in a high-paid job, have a partner who is not participating in the labour market or experience adverse local labour market conditions, suggesting that fathers trade off better employment opportunities with longer commutes. On the other hand, women give up non-local jobs regardless of their earnings level, their partner’s labour market status and local economic conditions, which is consistent with mothers specialising in childcare provision compared to fathers. |
| Keywords: | gender gap, childbirth, job location, cross-border employment, specialisation |
| JEL: | J13 J16 J61 C21 C23 J22 R23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9792&r= |
| By: | Johannes F. Schmieder; Till M. von Wachter; Jörg Heining |
| Abstract: | We document the sources behind the costs of job loss over the business cycle using administrative data from Germany. Losses in annual earnings after displacement are large, persistent, and highly cyclical, nearly doubling in size during downturns. A large part of the long-term earnings losses and their cyclicality is driven by declines in wages. Key to these long-lasting wage declines and their cyclicality are changes in employer characteristics, as displaced workers switch to lower-paying firms. Changes in characteristics of workers or displacing firms explain little of the cyclicality, though non-employment durations correlated with losses in employer effects play a role. |
| JEL: | J0 J2 J31 J60 J63 J64 J65 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30162&r= |
| By: | Gordon Dahl; Matthew M. Knepper |
| Abstract: | We study the labor market effects of permanent 23-50% reductions in unemployment insurance benefits available in seven states. Leveraging linked firm-establishment data, we find that establishments based in reform states experience 1.5-2.4% faster employment growth relative to the same firm's establishments in other states. Using a similar multi-state firm design, starting salaries are 1.8-7.2% lower in reform states and posted salaries for the same job fall by 1.4-5.5%. These labor supply shocks yield an average labor demand elasticity of -1.0. Our results reveal a substantial decline in match quality and worker bargaining power as UI benefits become less generous. |
| JEL: | J38 J64 J65 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30152&r= |
| By: | Donn. L. Feir; Kelly Foley; Maggie E.C. Jones |
| Abstract: | This paper studies the impact of active labour market programs for institutionally distinct Indigenous populations in Canada using administrative data on the universe of participants in the Aboriginal Skills and Employment Training Strategy (ASETS). Within Indigenous population groups, we compare labour market outcomes among individuals who participated in high- relative to low-intensity programs, where high-intensity programs were longer in duration. For Métis and non-Status First Nations groups, we find a large impact of high-intensity participation on earnings two years post-ASETS. The post-program earnings of Status First Nations individuals who participated in high-intensity programs were not statistically different from those in low-intensity programs. We argue that these differences are due to the unique institutional environments affecting different Indigenous populations. |
| JEL: | I26 I38 J15 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30158&r= |
| By: | Brendan M. Price; Melanie Wasserman |
| Abstract: | We provide the first systematic account of summer declines in women’s labor market activity. From May to July, the employment-to-population ratio among prime-age US women declines by 1.1 percentage points, whereas male employment rises; women’s total hours worked fall by 11 percent, twice the decline among men. School closures for summer break−and corresponding lapses in implicit childcare−provide a unifying explanation for these patterns. The summer drop in female employment aligns with cross-state differences in the timing of school closures, is concentrated among mothers with young school-age children, and coincides with increased time spent engaging in childcare. Decomposing the gender gap in summer work interruptions across job types defined by sector and occupation, we find large contributions from both gender differences in job allocation and gender differences within jobs in the propensity to exit employment over the summer. Summer childcare constraints may contribute to gender gaps in career choice and earnings: women−particularly those with young school-age children−disproportionately work in the education sector, which offers greater summer flexibility but lower compensation relative to comparable jobs outside of education. |
| Keywords: | gender gap, seasonality, labor force participation, childcare, time use, school closure |
| JEL: | J13 J16 J22 J24 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9783&r= |
| By: | Joanna Lahey; Roberto M. Mosquera |
| Abstract: | We explore the labor market for Hispanic high school graduates in the United States by age using information from the US Census, American Community Survey, Current Population Survey, and three laboratory experiments. We find, in general, that the differences in outcomes for Hispanic and non-Hispanic high school graduates do not change across the lifecycle. Moving to a laboratory setting, we provided participants with randomized resumes for a clerical position that are on average equivalent except for name and age (as indicated by date of high school graduation). In all three experiments, hypothetical applicants with Hispanic and non-Hispanic names were generally treated the same across the lifecycle by a student population, a population of human resources managers, and a more general population from mTurk. These results stand in contrast to earlier results that find strong differences by age in how resumes with Black and White names are treated. |
| JEL: | C91 J14 J15 J18 J7 M5 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30171&r= |
| By: | Charles Adams (Department of Economics, University of the Western Cape); Derek Yu (Department of Economics, University of the Western Cape) |
| Abstract: | South Africa's high unemployment has long been a key challenge for policymakers. Concerns about the social implications of sustained high unemployment are growing. Using the Quarterly Labour Force Survey data, we present evidence on key labour market trends in 2009-2019 – sometimes referred to as 'the lost decade'. Data suggest that patterns in labour market outcomes evident in the first decade of the 21st century have persisted and, in some ways, further deteriorated over the second decade. The unemployed remained largely black Africans and were concentrated amongst the less educated individuals. They remained out of work for longer and, on average, spent more time seeking employment. In accordance with recent literature, the data indicate the presence of hysteresis in unemployment. Key ameliorating policies in this scenario are skills development and structural reform of the labour market. The former is difficult to achieve, even in the long-term, while the latter is politically challenging. |
| Keywords: | Labour market, employment, unemployment, skills mismatch, South Africa |
| JEL: | J20 J64 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers373&r= |
| By: | Jochen M. Schmittmann; Shinya Kotera |
| Abstract: | This paper investigates labor market dynamics in Japan during the COVID-19 pandemic drawing on macro and micro data. The pandemic and related containment measures had a large negative impact on employment, labor force participation, earnings, and labor market mobility, although policy support through furlough schemes partially mitigated the rise in unemployment. Our results indicate that industry effects were a crucial driver of labor market outcomes for different groups of employees — women, younger age groups, nonregular, self-employed, and low-income workers accounted for a disproportional share of employment in the hardest hit industries. We also find empirical evidence for the need to improve childcare and related support, training and upskilling offerings, and teleworking availability, and the role of skill mismatches in reducing labor market mobility and resource reallocation. |
| Keywords: | Labor Markets; Japan; COVID-19; Unemployment; Earnings; labor market mobility; micro data; labor market outcome; DML result; employment dynamics; job stayer; Employment; Wages; Women; Global |
| Date: | 2022–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/089&r= |
| By: | W. Scott Frame; Ruidi Huang; Erik J. Mayer; Adi Sunderam |
| Abstract: | We study links between the labor market for loan officers and access to mortgage credit. Using novel data matching the (near) universe of mortgage applications to loan officers, we find that minorities are significantly underrepresented among loan officers. Minority borrowers are less likely to complete mortgage applications, have completed applications approved, and to ultimately take-up a loan. These disparities are significantly reduced when minority borrowers work with minority loan officers. Minority borrowers working with minority loan officers also have lower default rates. Our results suggest that minority underrepresentation among loan officers has adverse effects on minority borrowers’ access to credit. |
| Keywords: | mortgages; race; loan officers; approval; default |
| JEL: | G21 G51 J15 |
| Date: | 2022–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:94369&r= |
| By: | Nolan, Brian; Azzollini, Leo; Breen, Richard |
| Abstract: | How does gender equality in the labour market decrease household earnings inequality? Despite being prominent in the research literature on economic inequality, there is no consensus about the mechanisms underlying this relationship. In this paper, we assess the impact that full gender equality in the labour market would have on earnings inequality, and then decompose that impact by closing separately the gender gaps in employment, hours, and pay. We do so by applying a novel approach that combines reweighting and counterfactual analyses to LIS and OECD data for 26 OECD countries, across North America, Europe, and Australia. We find that full equality in earnings and employment between women and men would decrease household earnings inequality considerably. The most substantial decreases come from closing the gender employment gap, as opposed to gender gaps in pay and hours worked. A 10% counterfactual decrease in the gender employment gap (relative to the country baseline) is associated with an average 1.2% decrease in household earnings inequality. This points to reducing the gender employment gap as the pathway through which greater gender equality may most strongly mitigate overall earnings inequality, with the significant implication that two key goals for contemporary societies can be pursued simultaneously. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:amz:wpaper:2022-13&r= |
| By: | Amore, Mario Daniele (Bocconi University); Bennedsen, Morten (University of Copenhagen); Larsen, Birthe (Department of Economics, Copenhagen Business School) |
| Abstract: | The working environment is a key driver of firms’ success. Using unique survey and register data from Denmark, we show that firms led by neighborhood CEOs –defined by physical distance and personal values - exhibit better workplace condi-tions as perceived both by a regulatory authority and firms’ own employees. The e˙ect is stronger when the CEO’s and employees’ children attend the same school, pointing to social interactions as a channel for the result. Finally, we show that CEOs who emphasize neighborhood engagement adopt a management style tilted toward employees’ welfare. |
| Keywords: | CEO; geographic proximity; neighborhood values; working environment; management styles; |
| JEL: | G34 |
| Date: | 2022–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2022_010&r= |
| By: | Andrea Otero-Cortés; Tribín-Uribe, Ana María; Mojica, Tatiana |
| Abstract: | We study the labor market effects of the Venezuelan migration shock on female labor market outcomes in Colombia using a Bartik-instrument approach.For our identification strategy we leverage regional variation from pull factors and time variation from push factors. Our findings show that in the labor market, female immigrants can act as substitutes or complements for native-born women depending on native women’s education level; immigrant workers are substitutes in the labor market for native-born low-educated women as they compete for similar jobs. Hence, the low-educated native women’s labor force participation decreases. At the same time, time spent doing unpaid care increases for low-educated native women, possibly further preventing the job search for this group. On the other hand, we find an increase in labor force participation of 1.6 p.p. for highly educated women with minors at home and a 1 p.p. higher likelihood of becoming entrepreneurs due to the migratory shock, which supports the complementary-skill hypothesis. Finally, we don’t find evidence that the migratory shock induced households to outsource more home-production as a means for high-educated women to spend more time at paid work. **** RESUMEN: En este documento estudiamos los efectos que el choque migratorio venezolano tuvo sobre el mercado laboral y uso del tiempo para las mujeres de Colombia utilizando la metodología de instrumentos tipo Bartik. Para esto, usamos variación regional de un factor de atracción de migración, como lo son las redes migratorias previamente establecidas en cada ciudad receptora, y la variación temporal del IPC venezolano como factor de empuje de la migración para nuestra estrategia de identificación. Los resultados muestran que, en el mercado laboral, las mujeres migrantes pueden actuar como sustitutas o complementarias de las nativas dependiendo de la educación de estas últimas. Las trabajadoras inmigrantes son sustitutas en el mercado laboral de las mujeres nativas con baja escolaridad porque compiten por puestos de trabajo similares. Por lo tanto, la participación laboral disminuye para las mujeres nativas con bajo nivel educativo como consecuencia del choque migratorio y también aumenta el tiempo destinado al trabajo no remunerado, lo que posiblemente impide aún más la búsqueda de empleo para este grupo. De otra parte, encontramos que hay un aumento de la participación laboral de 1,6 p.p. para las mujeres con alta escolaridad y que viven con niños y niñas menores de 5 años en el hogar y una mayor probabilidad de convertirse en emprendedoras, lo que apoya la hipótesis de la complementariedad de las habilidades entre migrantes y nativas con alta escolaridad. Contrario a lo que ocurre en países desarrollados ante choques migratorios, no encontramos evidencia de que los hogares nativos contraten en mayor proporción mujeres migrantes para realizar trabajo domestico para facilitar que las mujeres con nivel alto educación dediquen más horas al trabajo remunerado. |
| Keywords: | Migration; Female labor market outcomes; Care economy; Entrepreneurship; Migración; Mercado laboral femenino; Economía del cuidado; Emprendimiento |
| JEL: | J16 J22 J61 L26 R23 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:region:311&r= |
| By: | Jan K. Brueckner; S. Sayantani |
| Abstract: | This paper summarizes the results from generalizing the simple two-city WFH model of Brueck-ner, Kahn and Lin (2021) through the addition of a group of non-remote workers, who must live in the city where they work. The results show that the main qualitative conclusions of BKL regarding the intercity effects of WFH are unaffected by this modification, with WFH yielding the same aggregate population and employment changes in the two cities and the same house-price and wage effects as in the simpler model. This conclusion is useful because it establishes the robustness of BKL’s highly parsimonious model. |
| Keywords: | work-from-home, remote work, amenities, productivity |
| JEL: | R12 R23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9793&r= |
| By: | Ran Abramitzky; Netanel Ben-Porath; Shahar Lahad; Victor Lavy; Michal Palgi |
| Abstract: | We study the effects of labor market liberalization on political behavior and attitudes towards free-market capitalism and socialism, exploiting a reform whereby the Israeli socialist communities called kibbutzim shifted from equal sharing to market-based wages. Our identification strategy relies on this reform's sharp and staggered implementation in different kibbutzim. We first examine changes in behavior associated with this labor market liberalization and document that the reform led to a shift in electoral voting patterns, resulting in decreased support for left-wing political parties and increased support for the center and right parties in national elections. Using annual survey data on attitudes over 25 years, we show that the reform led to increased support for free-market policies such as full privatization and differential wages. Moreover, it decreased support for socialist policies such as the joint ownership of production means. Yet, the reform increased support for the safety net to support weak members through mutual guarantee. These effects appear to be driven by an increase in living standards and work ethics that resulted from the reform. We conclude that introducing market-based wages led to a shift in attitudes towards a market economy with compassion, revealing a change in members’ support from their traditional democratic socialist model to a social democratic model. |
| JEL: | B14 J5 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30186&r= |
| By: | Wei Fu; Shin-Yi Chou; Li-San Wang |
| Abstract: | In the approaching era of genomic medicine, the underrepresentation of minority populations in human genetics and genomics research has raised growing concerns regarding the distributive justice in the translation of biomedical innovations into human health across populations. Quantitative assessment of public funding policy in addressing the missing diversity is imperative yet lacking. In this paper, we fill this gap by empirically answering two central questions in the context of Genome-Wide Association Studies (GWAS): whether improved funding opportunity facilitates minority health research, and how significant is the scientific value of funding science on underrepresented populations. Our identification draws on an exogenous NIH grant expansion under the American Reinvestment and Recovery Act of 2009, and exploits variations in the share of people with medical conditions among minorities relative to whites. Our main findings are threefold. First, the ARRA-NIH grant expansion contributes to an increase in the inclusion of minority ancestries in GWAS. It also facilitates the engagement of minority scientists in academic activities and promotes their role in scientific collaborations. The grant expansion fosters the discoveries of disease-associated genetic variants within minority populations. This quantitative evidence speaks to the role that public funding policy can play in advancing science. |
| JEL: | I14 J15 O31 O35 O38 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30155&r= |
| By: | Rita Ginja; Julie Riise; Barton Willage; Alexander L.P. Willén |
| Abstract: | We estimate doctor value-added and provide evidence on the distribution of physician quality in an entire country, combining rich population-wide register data with random assignment of patients to general practitioners (GPs). We show that there is substantial variation in the quality of physicians, as measured by patients’ post-assignment mortality, in the primary care sector. Specifically, a one standard deviation increase in doctor quality is associated with a 12.2-percentage point decline in a patient’s two-year mortality risk. While we find evidence of observable doctor characteristics and practice styles influencing a GP’s value-added, a standard decomposition exercise reveals that most of the quality variation is driven by unobserved differences across doctors. Finally, we show that patients are unable to identify who the high-quality doctors are, and that patient-generated GP ratings are uncorrelated with GP value-added. Using a lower bound of the predicted value of an additional life year in Norway ($35,000), our results demonstrate that replacing the worst performing GPs (bottom 5 percent of the VA distribution) with GPs of average quality generates a social benefit of $27,417 per patient, $9.05 million per GP, or $934 million in total. At the same time, our results show that higher-quality GPs are associated with a lower per-patient cost. |
| Keywords: | value-added, health behaviors, mortality rate |
| JEL: | H75 I11 I14 J18 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9788&r= |
| By: | Agrawal, David R.; Stark, Kirk J. |
| Abstract: | The remote work revolution raises the possibility that a much larger segment of the population will be able to sever the geographic linkage between home and work. This new development implicates several foundational questions in the law and economics of U.S. fiscal federalism. What are the taxing rights of states as to nonresident remote workers employed by firms within the state? May a state impose income taxes on nonresident employees only to the extent they are physically working within the state? Does state taxing power extend to all income derived from in-state firms, including wages paid to those who never set foot in the state? How these legal questions are resolved has important implications for the future of state income taxes. Standard sourcing rules attribute wage income to the employee's physical location. In the presence of remote work, however, rigid ad-herence to this physical presence rule could intensify the progressivity-limiting dynamics of federalism by re-ducing the costs to households of exploiting labor income tax differentials across jurisdictions. In this article, we document the rise of remote work, the status of state-level income tax progressivity as well as its evolution over time, and the correlation between work from home trends and progressivity. We consider how alternative legal rules for the sourcing of income can affect telework-induced mobility, but conclude that, regardless of which sourcing regime prevails in coming legal battles, the rise of remote work is likely to limit redistribution via state income taxes. While some sourcing rules may better preserve progressivity in the short term than others, the more fundamental threat to progressive state tax regimes derives from remote work's long-term erosion of the benefits of urban spatial clustering. To the extent that the nation's productive cities lose their allure as centers of agglomeration and the wages of high-skilled workers in these cities fall, the ability of their host states to pursue redistributive tax policies will likely be constrained. Significantly, these deglomeration effects will arise regard-less of how state taxing rights are adapted for the remote work era, and therefore may carry with them implica-tions for income tax progressivity at the federal level as well. |
| Keywords: | income tax,remote work,sourcing rules,progressivity |
| JEL: | H2 H7 J6 K3 R5 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1119&r= |
| By: | Pietrangelo de Biase; Sean Dougherty; Luca Lorenzoni |
| Abstract: | OECD economies are undergoing a seemingly inevitable process of population ageing that has been changing income and consumption patterns. Notably, the demand for health services is expected to increase, while labour forces are projected to shrink. Both factors are projected to negatively impact the sustainability of health systems – the former through an increase in government expenditures on health and the latter through a decrease in government revenues. As health systems and their funding streams tend to be at least partially decentralised in most OECD countries, this fiscal pressure is expected to be asymmetric across levels of government. The objective of this paper is to provide order-of-magnitude estimates of the possible effects of population ageing on government finances across OECD countries, and to discuss reforms to fiscal federalism and intergovernmental relations with the purpose of funding expenditures at all levels of government. |
| Keywords: | demographics, fiscal federalism, intergovernmental relations, revenue bouyancy, tax policy |
| JEL: | H51 H71 J11 |
| Date: | 2022–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ctpaab:38-en&r= |
| By: | Rebekka Rühle |
| Abstract: | This paper studies gender differences in mathematics and science achievement using the most recent Trends in International Mathematics and Science Study (TIMSS) data from 2019. Moreover, since grade repetition and dropouts are very common in South Africa and affect the magnitude of gender gaps, the first part of the analysis studies current gender differences in grade repetition and dropout. The descriptive analysis shows that South African boys are more likely to repeat a grade and to drop out of school compared to South African girls. Furthermore, girls outperform boys on average in mathematics and science, both in Grade 5 and 9, but the pro-girl gap is smaller in Grade 9. This suggests that the pro-girl advantage declines at higher grades. Another focus of the paper is to identify potential sources of the gender gaps besides the South African specific factors. This section finds that part of the pro-girl gap in Grades 5 and 9 can be attributed to the female advantage in school progression. Thus, without controlling for gender differences in over-age and dropouts by creating more comparable groups one would bias gender gaps in achievement. Furthermore, this paper shows that there are significant gender differences in attitudes towards mathematics and school in general and some are correlated with the gender differences in achievement. The multivariate analysis employing an ordinary least squares regression with interaction effects and school fixed effects shows that most considered interaction effects are not statistically significant in Grade 5, but several ones are significant in Grade 9. For example, ninth-grade girls are less affected by weekly bullying than their male peers, but value mathematics less. Although the results are an important step towards understanding the female advantage in mathematics and science, we need more studies that explain why girls are less likely to enrol in STEM degrees and why the pro-girl advantage in education does not result in a female advantage in the labour market. Moreover, the results show clearly that South African girls and boys face different challenges during their school careers, which both need equal attention. |
| Keywords: | gender inequality, STEM, mathematics performance, science performance, school dropout, repetition, attitudes, South Africa |
| JEL: | C21 I20 I21 I24 J16 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers374&r= |