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on Labour Economics |
| By: | García-Suaza, A; Gallego, J. M.; Mayorga, J. D.; Mondragón-Mayo, A.; Sepúlveda, C.; Sarango, A. |
| Abstract: | The increase in global immigration phenomena has impacted local labor markets. The process of social and economic assimilation is crucial to ensure the well-being of both natives and immigrants. This article analyzes the impacts of immigration from Venezuela to Colombia, differentiating the effects of recent and long-term immigration on natives and immigrants. We find that immigration has decreased employment and hourly wages; and increased informality, while the impact on unemployment is null. These effects are higher among immigrants in comparison with the native population. Our results show that even when adverse effects on labor market outcomes are estimated, there is evidence of adaptability to the immigration shock and that an assimilation process is taking place. |
| Keywords: | Migration, labor market, assimilation, Colombia. |
| JEL: | F22 O15 R23 J61 |
| Date: | 2022–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:020417&r= |
| By: | Diogo G.C. Britto; Alexandre de Andrade Fonseca; Paolo Pinotti; Breno Sampaio; Lucas Warwar |
| Abstract: | We provide the first estimates of intergenerational income mobility for a developing country, namely Brazil. We measure formal income from tax and employment registries, and we train machine learning models on census and survey data to predict informal income. The data reveal a much higher degree of persistence than previous estimates available for developed economies: a 10 percentile increase in parental income rank is associated with a 5.5 percentile increase in child income rank, and persistence is even higher in the top 5%. Children born to parents in the first income quintile face a 46% chance of remaining at the bottom when adults. We validate these estimates using two novel mobility measures that rank children and parents without the need to impute informal income. We document substantial heterogeneity in mobility across individual characteristics - notably gender and race - and across Brazilian regions. Leveraging children who migrate at different ages, we estimate that causal place effects explain 57% of the large spatial variation in mobility. Finally, assortative mating plays a strong role in household income persistence, and parental income is also strongly associated with several key long-term outcomes such as education, teenage pregnancy, occupation, mortality, and victimization. |
| Keywords: | Intergenerational Mobility, Inequality, Brazil, Migration, Place Effects |
| JEL: | J62 D31 I31 R23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp22186&r= |
| By: | Grosch, Kerstin; Häckl, Simone; Kocher, Martin G. |
| Abstract: | We examine individual-level determinants of interest in STEM and analyze whether a digital web application for elementary-school children can increase children’s interest in STEM with a specific focus on narrowing the gender gap. Coupling a randomized-controlled trial with experimental lab and survey data, we analyze the effect of the digital intervention and shed light on the mechanisms. We confirm the hypothesis that girls demonstrate a lower overall interest in STEM than boys. Moreover, girls are less competitive and exhibit less pronounced math confidence than boys at the baseline. Our treatment increases girls’ interest in STEM and decreases the gender gap via an increase in STEM confidence. Our findings suggest that an easy-to-implement digital intervention has the potential to foster gender equality for young children and can potentially contribute to a reduction of gender inequalities in the labor market such as occupational sorting and the gender wage gap later in life. |
| Keywords: | STEM; digital intervention; gender equality; field experiment |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:26023808&r= |
| By: | Rania Gihleb; Osea Giuntella; Luca Stella |
| Abstract: | How does previous exposure to massive immigrant inflows affect concerns about current immigration and the integration of refugees? To answer this question, we investigate attitudes toward newcomers among natives and previous immigrants. In areas that in the 1990s received higher inflows of immigrants of German origin—so-called ethnic Germans—native Germans are more likely to believe that refugees are a resource for the economy and the culture, viewing them as an opportunity rather than a risk. Refugees living in these areas report better health and feel less exposed to xenophobia. |
| JEL: | I0 J15 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30473&r= |
| By: | James Lake; Ding Liu |
| Abstract: | President Bush imposed safeguard tariffs on steel in early 2002. Using US input-output tables and a generalized difference-in-difference methodology, we analyze the local labor market employment effects of these tariffs depending on the local labor market’s reliance on steel as an input and as part of local production. We find the tariffs did not boost local steel employment but substantially depressed local employment in steel-consuming industries for many years after Bush removed the tariffs. These large and persistent negative effects were concentrated in local labor markets that had low human capital or were strongly specialized in steel-consuming industries. |
| Keywords: | Bush steel tariffs, safeguard tariffs, local labor markets, intermediate inputs, downstream, steel-consuming |
| JEL: | F13 F14 F16 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9909&r= |
| By: | Julien Pascal |
| Abstract: | I explore the links between commuting costs and local employment dynamics using a spatial discontinuity introduced by a French reform in September 2015. The reform decreased the cost of public transportation in selected areas of the Paris region, but did not affect other areas. In the baseline regression framework, which only includes units that are geographically close to each other, I find that areas benefiting from the reform experienced a 0:25 percentage point decline in the unemployment rate, a 0.60 percentage point increase in the share of employed workers commuting using public transport, and a 1.4% increase in the price of residential real estate. I extend the regression framework to take into account the heterogeneity of treatment introduced by the reform, which allows me to analyze the mechanisms driving the results. I also show that a calibrated spatial search-and-matching model can rationalize the estimated treatment effects. |
| Keywords: | Local employment, Commuting Costs, Policy, Search-and-Matching |
| JEL: | E24 J68 R13 R23 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp167&r= |
| By: | Elinder, Mikael (Department of Economics, Uppsala University); Erixson, Oscar (Department of Economics, Uppsala University); Hammar, Olle (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We present estimates of the number of refugees expected to flee Ukraine and to which countries they are expected to migrate based on migration preferences data from the Gallup World Poll. This is important in terms of both immediate refugee assistance efforts and long-term integration policies. Our key finding is that as many as twelve million people may want to leave Ukraine permanently and that refugee policies in potential destination countries are likely to have a substantial impact on the distribution of Ukrainian refugees between different countries. More specifically, international solidarity in response to the migration crisis would significantly reduce the refugee flows to EU countries, incur a limited burden on non-EU countries, and, at the same time, better take the preferences of the Ukrainians into account. |
| Keywords: | Ukraine; Refugees; Migration preferences |
| JEL: | F22 J15 O15 |
| Date: | 2022–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1440&r= |
| By: | Arenas, Andreu (University of Barcelona); Calsamiglia, Caterina (IPEG) |
| Abstract: | We investigate the effect of increasing the weight of standardized high-stakes exams at the expense of high school grades for college admissions. Studying a policy change in Spain, we find a negative effect of the reform on female college admission scores, driven by students expected to be at the top. The effect on admission scores does not affect enrolment, but the percentage of female students in the most selective degrees declines, along with their career prospects. Using data on college performance of pre-reform cohorts, we find that female students most likely to lose from the reform tend to do better in college than male students expected to benefit from the reform. The results show that rewarding high-stakes performance in selection processes may come along with gender differences unrelated to the determinants of subsequent performance. |
| Keywords: | college admissions, high-stakes exams, gender gaps |
| JEL: | J16 I23 I24 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15550&r= |
| By: | Kurt Schmidheiny (University of Basel, CEPR and CESifo); Sebastian Siegloch (University of Cologne, CEPR, ZEW, IZA and CESifo) |
| Abstract: | We discuss properties and pitfalls of panel-data event study designs. We derive three main results. First, assuming constant treatment effects before and/or after some event time, also known as binning, is a natural restriction imposed on theoretically infinite effect windows. Binning identifies dynamic treatment effects in the absence of never-treated units and is particularly suitable in case of multiple events. Second, event study designs with binned endpoints and distributed-lag models are numerically identical leading to the same parameter estimates after correct reparametrization. Third, classic dummy variable event study designs can be generalized to models that account for multiple events of different sign and intensity of the treatment, which are common in public and labor economics. We demonstrate the practical relevance of our methodological points in an application studying the effects of unemployment benefit duration on job search effort. |
| Keywords: | event study, distributed-lag, applied microeconomics, credibility revolution |
| JEL: | C23 C51 H00 J08 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:201&r= |
| By: | Holger Görg; Cecília Hornok; Catia Montagna; George E Onwordi |
| Abstract: | Labour market reforms in the direction of ’flexicurity’ have been widely endorsed as a means to increase an economy’s ability to adjust to negative shocks while offering adequate social safety nets. This paper empirically examines how such reforms influence employment’s responsiveness to output fluctuations (employment-output elasticity). To address this question, we employ a single equation error correction model with policy interactions on a panel of OECD countries, which also incorporates the period of the Great Recession, and distinguish between passive and active labour market policy types. Flexicurity is represented by three policy measures: unemployment benefit generosity, the flexibility of hiring and firing rules, and spending on active labour market policies. We find that the effects of any single policy change are shaped by the broader existing policy mix within which it takes place. A hypothetical flexicurity reform towards the policy mix of Denmark, a well-known example of the flexicurity regime, is found to increase or leave unchanged countries’ short-run employment-output elasticities, depending on the initial policy mix. These results are robust to accounting for a large set of additional labour market institutions. |
| Keywords: | employment-output elasticity, labour market policy, welfare state, flexicurity |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:2022-08&r= |
| By: | Drydakis, Nick (Anglia Ruskin University); Paraskevopoulou, Anna (Anglia Ruskin University); Bozani, Vasiliki (University of Cyprus) |
| Abstract: | The study examines whether age intersects with gender and race during the initial stage of the hiring process and affects access to vacancies outcomes and wage sorting. In order to answer the research question the study collects data from four simultaneous field experiments in England. The study compares the labour market outcomes of younger White British men with those of older White British men and women, and with those of older Black British men and women. The study concentrates on low-skilled vacancies in hospitality and sales in the private sector. The results of this study indicate that older White British men and women, as well as older Black British men and women, experience occupational access constraints and are sorted into lower-paid jobs than younger White British men. The level of age discrimination is found to be higher for Black British men and women. In addition, Black British women experience the highest level of age discrimination. These patterns may well be in-line with prejudices against racial minority groups and stereotypical sexist beliefs that the physical strengths and job performance of women decline earlier than they do for men. This research presents for the first-time comparisons of access to vacancies and wage sorting between younger male racial majorities and older male racial majorities, older female racial majorities, older male racial minorities, and older female racial minorities. In addition, the driven mechanism of the assigned differences is explored. Because the study has attempted to minimise the negative employer stereotypes vis-à-vis older employees, with respect to their motivation, productivity, and health, such prejudices against older individuals may be considered Taste-based discrimination. If prejudices against older individuals are present, then anti-discrimination legislation may be the appropriate response, especially for racial minorities and women. Eliminating age discrimination in selection requires firms to adopt inclusive HR policies at the earliest stages of the recruitment process. |
| Keywords: | age discrimination, women, racial minorities, intersectionality, access to occupations, wages |
| JEL: | C93 C9 J14 J1 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15567&r= |
| By: | Merlino, Luca Paolo (Université Libre de Bruxelles); Steinhardt, Max F. (Free University of Berlin); Wren-Lewis, Liam (Paris School of Economics) |
| Abstract: | This paper exploits quasi-random variation in the share of Black students across cohorts within US schools to investigate whether interracial contact in childhood impacts the residential choices of Whites in adulthood. We find that, 20 years after exposure, Whites who had more Black peers of the same gender in their grade go on to live in census tracts with more Black residents. Further investigation suggests that this result is unlikely to be driven by economic opportunities or social networks. Instead, the effect on residential choice appears to come from a change in preferences among Whites. |
| Keywords: | residential segregation, social contact, race |
| JEL: | I29 J15 R23 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15538&r= |
| By: | Javier Olivera (Luxembourg Institute of Socio-Economics Inequality (LISER)); Yadiraah Iparraguirre (Pontificia Universidad Catolica del Peru (PUCP)) |
| Abstract: | This paper studies the gender pension savings gap in a system based on individual retirement accounts (IRA). We exploit randomly selected samples of individual administrative pension fund records in Peru, collected between 2005 and 2019. The results show a gender gap in favor of men at each percentile of the distribution of pension funds. The unconditional gender gap decreases along the percentiles until it reaches a form of “glass ceiling†, and then increases substantially. Older cohorts show larger gender gaps in pension savings because of the capitalization process. Importantly, we find that awareness about pension fund risk management—used as a proxy for financial literacy—increases the dispersion of pension savings over the distribution, therefore increasing inequality and the gender gap. This situation is aggravated by the fact that Peru has very low levels of financial literacy. Our results could be useful to other countries with IRA systems, or countries that are considering increasing the relative importance of these systems in their pension models. These systems are conceived to improve the incentive alignment between individual contributions, labor supply and retirement savings, but one danger is that of exacerbating gender pension gaps. |
| Keywords: | Gender gap, Pension savings, Financial literacy, Unconditional quantile, Peru |
| JEL: | D31 G23 J16 J32 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2022-624&r= |
| By: | Hovhannisyan, Shoghik (World Bank); Montalva-Talledo, Veronica (World Bank); Remick, Tyler (George Washington University); Rodriguez Castelan, Carlos (World Bank); Stamm, Kersten (World Bank) |
| Abstract: | Measuring job quality across countries has been challenging and has relied typically on a single indicator, such as formality or wages. To contribute to this critical policy issue, this paper presents a first global estimate of job quality departing from microdata. It assembles a harmonized global data set of labor force and household surveys to produce a measure of job quality across four dimensions: sufficient income, access to employment benefits, job stability, and adequate working conditions. The results for 40 developing countries show significant variation in job quality across countries, economic sectors, and sociodemographic characteristics, including age, location, and educational attainment. Countries in the Latin America and the Caribbean region have relatively higher levels of job quality, while countries in Sub-Saharan Africa display the lowest levels of job quality. Most workers in the sectors of finance and business services, public administration, and utilities have, on average, better jobs. Higher education matters in securing greater job quality, while the average job quality of wage employment is relatively similar between men and women but with some variation in income and working conditions. |
| Keywords: | job quality, working conditions, wage employment, private sector, global |
| JEL: | J30 J81 I31 O10 O15 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15565&r= |
| By: | Billur Aksoy; Christopher S. Carpenter; Dario Sansone |
| Abstract: | Using a US nationally representative sample and a double list experiment designed to elicit views free from social desirability bias, we find that anti-transgender labor market attitudes are significantly underreported. After correcting for this concealment, we report that 73 percent of people would be comfortable with a transgender manager and 74 percent support employment non-discrimination protection for transgender people. We also show that respondents severely underestimate the population level of support for transgender individuals in the workplace, and we find that labor market support for transgender people is significantly lower than support for gay, lesbian, and bisexual people. Our results provide timely evidence on workplace-related views toward transgender people and help us better understand employment discrimination against them. |
| JEL: | J0 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30483&r= |
| By: | Advani, Arun (University of Warwick, CAGE, the Institute for Fiscal Studies (IFS), and the LSE International Inequalities Institute (III)); Burgherr, David (LSE III.); Summers, Andy (London School of Economics, III, and CAGE) |
| Abstract: | Using administrative data on the globally connected super-rich in the UK, we study the effect of a large tax reform on migration behaviour. Prior to 2017, o shore investment returns for `non-doms' - individuals tax resident in the UK but with connections to other countries - were untaxed. Average off shore investment returns for these individuals exceeded £420,000; even without considering other types of income, this puts them in the top 0.2% of the population. A reform in 2017 brought long-stayers and UK-born non-doms into the standard tax system, reducing their effective net of average tax rate by between 8.8% and 13.0%. We nd that migration responses were limited : our central estimate of the migration elasticity is 0.02, and across a range of specifications we can rule out elasticities larger than 0.5. Using reforms for the UK-born super-rich who were living abroad, we find that migration elasticities are limited even for recent arrivals, for whom our central estimate is 0.18. Assuming similar elasticities for all non-doms, abolition of the preferential regime would increase tax revenue collected from non-doms by £3.2bn (84%). |
| Keywords: | taxation; migration; capital income; inequality; mobility JEL Codes: F22 ; H31 ; J61 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1427&r= |