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on Labour Economics |
| By: | Bedaso, Fenet Jima; Jirjahn, Uwe; Goerke, Laszlo |
| Abstract: | We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less effective. Using data from the Socio-Economic Panel, our empirical analysis confirms a unionization gap for first-generation immigrants in Germany. Importantly, the analysis shows that the immigrant-native gap in union membership indeed depends on immigrants' integration into the workplace and society. The gap is smaller for immigrants working in firms with a works council and having social contacts with Germans. Our analysis also confirms that the gap is decreasing in the years since arrival in Germany. |
| Keywords: | Union membership,migration,works council,social contacts with natives,years since arrival |
| JEL: | J15 J52 J61 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1169&r= |
| By: | Albanese, Andrea; Cockx, Bart; Dejemeppe, Muriel |
| Abstract: | We use (donut) regression discontinuity design and difference-in-differences estimators to estimate the impact of a one-shot hiring subsidy targeted at low-educated unemployed youths during the Great Recession recovery in Belgium. The subsidy increases job-finding in the private sector by 10 percentage points within one year of unemployment. Six years later, high school graduates accumulated 2.8 quarters more private employment. However, because they substitute private for public and self-employment, overall employment does not increase but is still better paid. For high school dropouts, no persistent gains emerge. Moreover, the neighboring attraction pole of Luxembourg induces a complete deadweight near the border. |
| Keywords: | Hiring subsidies,youth unemployment,cross-border employment,regression discontinuity design,difference-in-differences,spillover effects,displacement |
| JEL: | C21 J08 J23 J24 J64 J68 J61 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1168&r= |
| By: | Juan-Pablo Rud (University of London); Michael Simmons (Umeå University); Gerhard Toews (Orléans University); Fernando Aragon (Simon Fraser University) |
| Abstract: | The reduction of carbon emissions will require a rapid phasing out of coal and the displacement of millions of coal miners. How much could this energy transition cost mining workers? We use the dramatic collapse of the UK coal industry to estimate the long-term impact on displaced miners. We find evidence of substantial losses: wages fell by 40% and earnings fell by 80% to 90% one year after job loss. These losses are persistent and remain significantly depressed fifteen years later, amounting to present discounted value earnings losses of between four and six times the miners pre-displacement earnings |
| JEL: | J30 J63 J64 O4 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:184&r= |
| By: | Garcia-Clemente, Javier; Rubino, Nicola; Congregado, Emilio |
| Abstract: | This paper presents an average treatment effect analysis of the Spain’s furlough program during the onset of the COVID-19 pandemic, using propensity score matching techniques. Merging 2020 labor force quarterly microdata, we find that the probability to be re-employed after treatment was significantly higher among the treated (furlough granted group) than in the control group (comparable non-furloughed individuals who lost their job). These results seem to be robust across models, having tested a wide range of matching specifications. Furthermore, we also explore if the Spanish furlough scheme had an uniform impact across regions with different industrial structures, concluding that the furlough participation was positively related to the probability of re�employment across any region and economic activity. Nevertheless, a different time arrangement did affect the magnitude of the effect, suggesting that it may decrease with the furlough duration. This finding advises against long lasting schemes under persistent recessions, notwithstanding, short time work schemes still stand as useful strategies to face essentially transitory adverse shocks. |
| Keywords: | Furlough, short-time work, ERTE, propensity score matching, Covid-19, Spain. |
| JEL: | J08 J38 J65 J68 |
| Date: | 2022–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114504&r= |
| By: | Aparajita Dasgupta (Ashoka University); Anahita Karandikar (University of British Columbia); Devvrat Raghav (Ashoka University) |
| Abstract: | Expansion in access to public infrastructure can have varied, micro-level impacts. In this paper, we use quasi-random access to rural paved roads through a large-scale road-construction program in India to study how road access impacts fertility decisions and investments in child health. We find that increased access to paved roads at the district-level leads to a rise in fertility, improved investments in children—measured through breastfeeding duration and immunization—and lower infant mortality. We also investigate the potential labor market mechanisms that drive these effects, and heterogeneity in the impacts by plausibly exogenous variation in levels of female labor force participation (FLFP). We find that in districts with erstwhile lower levels of FLFP, the effects on fertility and child health are driven by paved road access causing women to drop out of the labour force, while men shift from unpaid work to paid work. On the other hand, in districts with higher FLFP due to women’s involvement in agriculture, we find that the increase in fertility can be explained by women substituting away from (paid) employment towards full-time domestic work. |
| Keywords: | Healthcare; Fertility; mortality; Gender norms; Infrastructure; Labour markets |
| Date: | 2022–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:ash:wpaper:86&r= |
| By: | Marczak, Martyna; Beissinger, Thomas; Brall, Franziska |
| Abstract: | We propose a novel framework that integrates the "task approach" for a more precise production modeling into the search-and-matching model with low- and high-skilled workers, and wage setting by labor unions. We establish the relationship between task reallocation and changes in wage pressure, and examine how skill- biased technical change (SBTC) affects the task composition, wages of both skill groups, and unemployment. In contrast to the canonical model with a fixed task allocation, low-skilled workers may be harmed in terms of either lower wages or higher unemployment depending on the relative task-related productivity profile of both worker types. We calibrate the model to the US and German data for the periods 1995-2005 and 2010-2017. The simulated effects of SBTC on low-skilled unemployment are largely consistent with observed developments. For example, US low-skilled unemployment increases due to SBTC in the earlier period and decreases after 2010. |
| Keywords: | task approach,search and matching,labor unions,skill-biased technical change,labor demand,wage setting |
| JEL: | J64 J51 E23 E24 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1177&r= |
| By: | Jessica Nisén (Max Planck Institute for Demographic Research, Rostock, Germany); Johanna Tassot (Max Planck Institute for Demographic Research, Rostock, Germany); Francesco Iacoella; Peter Eibich (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | An extensive body of research shows that motherhood has substantial impacts on women’s earnings, but there is less evidence on the effect of the timing of motherhood, particularly in the long term and from contexts other than the US. This study analyses data from the 1970 British Cohort Study (BCS70) to examine whether the timing of motherhood affects women’s midlife earnings, as well as the role of potential mediators (tertiary education, years in paid work, and number of children). We make use of the occurrence and timing of biological fertility shocks as a source of exogenous variation in the age at first birth. We find evidence for that avoidance of early motherhood may have a positive effect on women’s earnings in midlife in the UK. This effect is likely to be mediated by years in paid work and number of children. These findings call for policies that support early mothers’ employment careers. |
| Keywords: | United Kingdom, contraception, education, female employment, fertility, income, labor market |
| JEL: | J1 Z0 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2022-021&r= |
| By: | Cordova, Karla (Pomona College); Grabka, Markus M. (DIW Berlin); Sierminska, Eva (LISER (CEPS/INSTEAD)) |
| Abstract: | We examine the gender wealth gap with a focus on pension wealth and statutory pension rights. By taking into account employment characteristics of women and men, we are able to identify the extent to which the redistributive effect of pension rights reduces the gender wealth gap. The data for our analysis come from the German Socio-Economic Panel (SOEP), one of the few surveys collecting information on wealth and pension entitlements at the individual level. Pension wealth data are available in the SOEP for 2012 only. While the relative raw gender wealth gap is about 35% (or 31,000 euros) when analysing the standard measure of net worth, it shrinks to 28% when pension wealth is added. This reduction is due to redistributive elements such as caregiver credits provided through the statutory pension scheme. Results of a recentered influence functions (RIF) decomposition show that pension wealth reduces the gap substantially in the lower half of the distribution. At the 90th percentile, the gender wealth gap in net worth and in augmented wealth remains more stable at roughly 27-30%. |
| Keywords: | gender wealth gap, pension entitlements, Germany, redistribution, SOEP |
| JEL: | H55 D31 J16 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15563&r= |
| By: | Drydakis, Nick; Paraskevopoulou, Anna; Bozani, Vasiliki |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1170&r= |
| By: | Eliason, Marcus (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | Schizophrenia spectrum, bipolar, and major depressive disorders are severe mental illnesses (SMIs) that not only entail great suffering for those affected but also major societal costs. In this study, I use administrative register data to provide a detailed picture of the economic situation of people with SMI in Sweden during a period of 10 years around first-time in-patient diagnosis. First-time in-patient diagnosis was associated with a considerable drop in earnings, which was largely compensated for by social transfers: mainly sickness and disability insurance. However, there were also large and increasing pre-diagnosis earnings gaps, relative to matched comparison groups, especially among those with schizophrenia spectrum disorders. This gap was to lesser extent compensated for by social transfers. Consequently, there was a permanent and increasing – due to lost earnings growth – income differential. Hence, findings in previous studies are confirmed: even in an advanced welfare state, people with SMI – especially those with schizophrenia – have an extremely weak position on the labour market and an equally difficult financial situation. |
| Keywords: | Schizophrenia spectrum disorder; bipolar disorder; major depressive disorder; social insurances; labour market situation |
| JEL: | I13 I14 J14 J65 |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2022_019&r= |
| By: | Julia Hellstrand (Max Planck Institute for Demographic Research, Rostock, Germany); Jessica Nisén (Max Planck Institute for Demographic Research, Rostock, Germany); Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Fertility declined sharply and unexpectedly in Finland in the 2010s. Using detailed Finnish register data, we calculated total fertility rates (TFRs) and the proportion of women expected to have a first birth (TFRp1) in 2010–2019 for 153 fields of education and estimated how the characteristics of each field predicted its fertility decline. As educational field predicts factors related to economic uncertainty, heterogeneity in fertility decline across fields could shed light on the role of economic uncertainty behind the recent fertility decline. In general, women with the highest initial fertility levels (health, welfare, and education) and women in agriculture experienced weaker fertility declines (around -20% or less), while women with the lowest initial fertility levels (ICT, arts and humanities) experienced stronger fertility declines (around -40% or more). The extent of the fertility decline increased with higher unemployment and lower income levels of the field, and with a lower share employed in the public sector. These uncertainty measures together explained one-fourth of the decline in TFR and two-fifths of the decline in first births. The results imply that groups characterized by stable job prospects escaped very strong fertility declines and that objective economic uncertainty fueled the fertility decline in Finland. |
| Keywords: | Finland, fertility decline |
| JEL: | J1 Z0 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2022-022&r= |
| By: | Cali,Massimiliano; Johnson,Hillary C.; Perova,Elizaveta; Ryandiansyah,Nabil Rizky |
| Abstract: | Childcare services enable women who were previously unable to work due to taking care of theirchildren to join the labor market. If some women are more productive in market work, rather than unpaid householdwork, the availability of childcare can potentially improve the allocation of talent across different occupations,triggering an increase in productivity. This paper tests this hypothesis using a survey of manufacturing plants anddata on preschool expansion in Indonesia. The analysisrelies on a triple difference estimation comparing plants in sectors with different degrees of female labor at baseline.The results suggest that between 2002 and 2014, when a rapid preschool expansion took place in Indonesia, an additionalpreschool per 1,000 children increased the total factor productivity of manufacturing plants by 11 percent forplants with an average fraction of female workers. The paper provides suggestive evidence that these effects were drivenby better labor market matching, enabled by the expansion of female labor supply, and greater job stability for femaleemployees. The results unveil a novel short-term economic impact of childcare services, which complements thelong-term growth impact through human capital accumulation. |
| Date: | 2022–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10193&r= |
| By: | Contreras Gonzalez,Ivette Maria; Siwatu,Gbemisola Oseni; Palacios-Lopez,Amparo; Pieters,Janneke; Weber,Michael |
| Abstract: | This paper uses high-frequency phone survey data from Ethiopia, Malawi, Nigeria, and Uganda toanalyze the impacts of the COVID-19 crisis on work (including wage employment, self-employment, and farm work)and income, as well as heterogeneity by gender, family composition, education, age, pre-COVID19 industry of work,and between the rural and urban sectors. The paper links phone survey data collected throughout the pandemic topre-COVID-19 face-to-face survey data to track the employment of respondents who were working before thepandemic and analyze individual-level indicators of job loss and re-employment. Finally, it analyzes both immediateimpacts, during the first few months of the pandemic, as well as longer run impacts through February/March 2021. Thefindings show that in the early phase of the pandemic, women, young, and urban workers were significantly morelikely to lose their jobs. A year after the onset of the pandemic, these inequalities disappeared and educationbecame the main predictor of joblessness. The analysis finds significant rural/urban, age, and education gradients inhousehold-level income loss. Households with income fromnonfarm enterprises were the most likely to report income loss, in the short run as well as the longer run. |
| Date: | 2022–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10143&r= |
| By: | Bhalotra, Sonia (Department of Economics, University of Warwick, CAGE, CEPR, and IZA.); Clarke, Damian (Department of Economics, University of Chile, MIPP, CAGE and IZA) |
| Abstract: | The occurrence of twin births has been widely used as a natural experiment. With a focus upon the use of twin births for identification of causal effects in economics, this chapter provides a critical review of methods and results. |
| Keywords: | Twins ; identification ; fertility ; birth spacing ; child development ; women’s labour market outcomes ; child penalty. JEL Codes: D10 ; I26 ; J13, J24 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1428&r= |
| By: | Sara Lowes |
| Abstract: | Kinship structure – how extended families are organized – varies across societies and may have implications for outcomes within the household. A key source of variation in kinship structure is whether lineage and inheritance are traced through women, as in matrilineal kinship systems, or men, as in patrilineal kinship systems. Anthropologists hypothesized that matrilineal kinship systems benefit women because they have greater support from their kin and husbands have less authority over their wives. However, they believed these same factors may also reduce spousal cooperation. I test these hypotheses using OLS and a geographic regression discontinuity design along the matrilineal belt in Africa. Using over 50 DHS survey-waves, I find that matrilineal women experience less domestic violence and have greater autonomy in decision making. Additionally, matrilineal kinship closes the education gap between male and female children, and matrilineal children experience health benefits. To better understand the specific mechanisms behind these effects, I collect original survey and experimental data from along the matrilineal belt. Men and women from matrilineal ethnic groups cooperate less with their spouses in a lab experiment. This is particularly the case for matrilineal women when they have the opportunity to hide income from their spouse. The results highlight how broader social structures shape key outcomes within the domestic sphere. |
| JEL: | D13 J16 N47 P5 Z13 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30509&r= |
| By: | Carranza,Eliana; Donald,Aletheia Amalia; Grosset,Florian; Kaur,Supreet |
| Abstract: | In low-income communities, pressure to share income with others may disincentivize work,distorting labor supply. This paper documents that across countries, social groups that undertake more interpersonaltransfers work fewer hours. Using a field experiment, the study enabled piece-rate factory workers in Côted'Ivoire to shield income using blocked savings accounts over 3-9 months. Workers could only depositearnings increases, relative to baseline, mitigating income effects on labor supply. The study varied whether theoffered account was private or known to the worker's network, altering the likelihood of transfer requestsagainst saved income. When accounts were private, take-up was substantively higher (60% vs. 14%). Offering privateaccounts sharply increased labor supply—raising work attendance by 10% and earnings by 11%. Outgoing transfersdid not decline, indicating no loss in redistribution. The estimates imply a 9–14% social tax rate. The welfarebenefits of informal redistribution may come at a cost, depressing labor supply and productivity. |
| Date: | 2022–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10155&r= |
| By: | Sepahvand, Mohammad H. (Department of Economics, Lund University) |
| Abstract: | This study analyzes how risk attitudes influence the agricultural productivity of men and women in a sub-Saharan African country, Burkina Faso. By using a large representative panel survey of farmers, the results show that as female farmers increase risk taking, the productivity of female-owned plots goes down. The study controls for various socio-economic factors and explores how the diversity of the regions of the country affects gender differences. Findings show that agricultural policy interventions in Burkina Faso need to be gender sensitized when addressing issues related to credit constraints, improved inputs, and policies that support increase in productivity. |
| Keywords: | Risk attitudes; Gender differences; Agriculture; Productivity; Sub-Saharan Africa; Burkina Faso |
| JEL: | D13 D81 J16 O13 Q12 Q18 |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2022_019&r= |
| By: | Stefanie Stantcheva |
| Abstract: | Surveys are an essential approach for eliciting otherwise invisible factors such as perceptions, knowledge and beliefs, attitudes, and reasoning. These factors are critical determinants of social, economic, and political outcomes. Surveys are not merely a research tool. They are also not only a way of collecting data. Instead, they involve creating the process that will generate the data. This allows the researcher to create their own identifying and controlled variation. Thanks to the rise of mobile technologies and platforms, surveys offer valuable opportunities to study either broadly representative samples or focus on specific groups. This paper offers guidance on the complete survey process, from the design of the questions and experiments to the recruitment of respondents and the collection of data to the analysis of survey responses. It covers issues related to the sampling process, selection and attrition, attention and carelessness, survey question design and measurement, response biases, and survey experiments. |
| JEL: | D9 H0 J0 P20 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30527&r= |
| By: | Jörn Block (Trier-University, Erasmus-University Rotterdam, The Netherlands, University Witten/Herdecke); Alexander S. Kritikos (DIW Berlin, University of Potsdam, IZA Bonn, IAB Nuremberg); Maximilian Priem (DIW Econ Berlin); Caroline Stiel (DIW Berlin) |
| Abstract: | The self-employed faced strong income losses during the Covid-19 pandemic. Many governments introduced programs to financially support the self-employed during the pandemic, including Germany. The German Ministry for Economic Affairs announced a €50bn emergency-aid program in March 2020, offering one-off lump-sum payments of up to €15,000 to those facing substantial revenue declines. By reassuring the self- employed that the government ‘would not let them down’ during the crisis, the program had also the important aim of motivating the self-employed to get through the crisis. We investigate whether the program affected the confidence of the self-employed to survive the crisis using real-time online-survey data comprising more than 20,000 observations. We employ propensity score matching, making use of a rich set of variables that influence the subjective survival probability as main outcome measure. We observe that this program had significant effects, with the subjective survival probability of the self- employed being moderately increased. We reveal important effect heterogeneities with respect to education, industries, and speed of payment. Notably, positive effects only occur among those self-employed whose application was processed quickly. This suggests stress-induced waiting costs due to the uncertainty associated with the administrative processing and the overall pandemic situation. Our findings have policy implications for the design of support programs, while also contributing to the literature on the instruments and effects of entrepreneurship policy interventions in crisis situations. |
| Keywords: | self-employment, emergency-aid, treatment effects, Covid-19, entrepreneurship policy, subjective survival probability |
| JEL: | C21 H43 L25 L26 J68 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:55&r= |
| By: | Lopez, Claude (Milken Institute); Roh, Hyeongyul (Milken Institute); Switek, Maggie (Milken Institute) |
| Abstract: | The Community Explorer provides new insights and data on the characteristics and diversity of the US population. Using machine learning methods, it synthesizes the information of 751 variables across 3,142 counties from the US Census Bureau's American Community Survey into 17 communities. Each one of these communities has a distinctive profile that combines demographic, socio-economic, and cultural behavioral determinants while not being geographically bounded. We encourage policy makers and researchers to make use of the results of our analysis. The Community Explorer dashboard provides the location of these profiles, allowing for targeted deployment of community interventions and, more broadly, increasing the understanding of socioeconomic gaps withing the US. |
| Keywords: | diversity, communities, development, economic well-being |
| JEL: | D31 J08 J10 R10 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp190&r= |