nep-lab New Economics Papers
on Labour Economics
Issue of 2023‒10‒23
thirteen papers chosen by
Joseph Marchand, University of Alberta


  1. The Impact of Immigration on the Employment Dynamics of European Regions By Anthony Edo; Cem Özgüzel
  2. Effects of Occupational License Access on Undocumented Immigrants: Evidence from the California Reform By Bobby W. Chung
  3. Can refugees improve native children’s health?: Evidence from Turkey By Cansu Oymak; Jean-François Maystadt
  4. The labor market effects of disability benefit loss By Anikó Bíró; Cecília Hornok; Judit Krekó; Dániel Prinz; Ágota Scharle
  5. On-The-Job Search, Life-cycle Training, and the Role of Transfer Fees By Arnaud Chéron; Anthony Terriau
  6. The social and solidarity economy as a partner along the refugee journey By OECD
  7. Beliefs- and fundamentals-driven job creation By Schnattinger, Philip
  8. Research Similarity and Women in Academia By Piera Bello; Alessandra Casarico; Debora Nozza
  9. Intergenerational Mobility of Daughters and Marital Sorting: New Evidence from Imperial China By Wolfgang Keller; Carol H. Shiue
  10. Parenting with Patience: Parental Incentives and Child Development By Daniela Del Boca; Christopher Flinn; Ewout Verriest; Matthew Wiswall
  11. Taxation and Mobility: Evidence from Tax Decentralization in Italy By Enrico Rubolino; Tommaso Giommoni
  12. The Birth Order Effect: A Modern Phenomenon? By Nuevo-Chiquero, Ana; Vidal-Fernandez, Marian; Lehmann, Jee-Yeon K.
  13. Initial inequality, unequal development: Effects of family movements on child development By Rodrigo Ceni; Maira Colacce; Gonzalo Salas

  1. By: Anthony Edo; Cem Özgüzel
    Abstract: This paper provides the first evidence on the regional impact of immigration on native employment in a cross-country framework. We show that the rise in the share of immigrants across European regions over the 2010-2019 period had a modest impact on the employment-to-population rate of natives. However, the effects are highly uneven across regions and workers, and over time. First, the short-run estimates show adverse employment effects in response to immigration, while these effects disappear in the longer run. Second, low-educated native workers experience employment losses due to immigration, whereas high-educated ones are more likely to experience employment gains. Third, the presence of institutions that provide employment protection and high coverage of collective wage agreements exert a protective effect on native employment. Finally, economically dynamic regions can better absorb immigrant workers, resulting in little or no effect on the native workforce.
    Keywords: Immigration;Employment;Labour Supply;Employment Dynamics
    JEL: F22 J21 J61
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:cii:cepidt:2023-20&r=lab
  2. By: Bobby W. Chung (University of South Florida)
    Abstract: In 2014, California lifted legal work status requirement for dozens of occupational licenses - a major obstacle for undocumented immigrants in the US to access professional jobs. This paper assesses its effects on the employment outcome of undocumented immigrants in California. Analysing likely undocumented immigrants in the American Community Survey, I find that the law increased their employment, particularly in lower-skill or blue-collar licensed occupations, and older or Hispanic workers. I also find the law did not crowd out documented or domestic workers.
    Keywords: Occupational licensing, Undocumented immigrants, Employment
    JEL: J15 J44 K37
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:usf:wpaper:2023-02&r=lab
  3. By: Cansu Oymak (Lancaster University, Economics Department, United Kingdom); Jean-François Maystadt (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: Following the most dramatic migration episode of the 21st century, Turkey hosted the largest number of Syrian refugees in the world. This paper assesses the impact of the arrival of Syrian refugees on the Turkish children’s health, with a focus on height – a standard nutritional outcome. Accounting for the endogenous choice of immigrant location, our results show that Turkish children residing in provinces with a large share of refugees exhibit a significant improvement in their height as compared to those living in provinces with less refugees. Against other potential channels, a refugee-induced increase in maternal unemployment and the associated increase in maternal care seem to explain the observed positive effect on children’s health.
    Keywords: refugees, child health, anthropometric measures, labor market outcomes
    JEL: O15 I15
    Date: 2023–09–12
    URL: http://d.repec.org/n?u=RePEc:ctl:louvir:2023017&r=lab
  4. By: Anikó Bíró (Institute for Fiscal Studies); Cecília Hornok (Institute for Fiscal Studies); Judit Krekó (Institute for Fiscal Studies); Dániel Prinz (Institute for Fiscal Studies); Ágota Scharle (Institute for Fiscal Studies)
    Abstract: Disability benefits provide social insurance against the risk of losing working capacity, as well as an important source of income for individuals with disabilities. They are also costly and tend to reduce labor supply. Although spending can be contained by careful targeting, correcting past flaws in eligibility rules or assessment procedures may entail welfare costs. This paper studies a major reform in Hungary that reassessed the health and working capacity of a large share of beneficiaries. Leveraging age and health cutoffs in the reassessment, the paper estimates employment responses to loss or reduction of benefits. The findings show that among those who left disability insurance due to the reform, 58 percent were employed in the primary labor market, 6 percent participated in public works, and 36 percent were out of work without benefits in the post-reform period. The consequences of leaving disability insurance differed sharply by pre-reform employment status. Among the beneficiaries who were employed in the pre-reform year, 81 percent worked, while only 33 percent of those without pre-reform employment did. The gains of the reform in activating beneficiaries were small and strongly driven by pre-reform employment status. This points to the importance of combining financial incentives with broader labor market programs that increase employability.
    Date: 2023–09–29
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:23/27&r=lab
  5. By: Arnaud Chéron; Anthony Terriau
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:tep:teppwp:wp23-06&r=lab
  6. By: OECD
    Abstract: Produced as part of the OECD Global Action “Promoting Social and Solidarity Economy Ecosystems” funded by the European Union, this paper explores the role of the social and solidarity economy (SSE) in implementing and complementing public systems for refugee protection, reception and integration. In particular, it reviews the different activities SSE entities can deploy in support of forcibly displaced populations, asylum seekers and refugees, along their journey from origin through to destination countries. Finally, it offers some policy considerations on how the SSE can help national and local governments identify win-win solutions for refugee and host communities.
    Keywords: asylum seekers, cooperative, forced displacement, local development, non profit, refugees, social and solidarity economy, social economy, social enterprise, social entrepreneurship, social innovation
    JEL: F22 J15 J61 L33 L31
    Date: 2023–10–04
    URL: http://d.repec.org/n?u=RePEc:oec:cfeaaa:2023/15-en&r=lab
  7. By: Schnattinger, Philip (Bank of England)
    Abstract: This paper studies whether beliefs about future labour productivity independent of fundamentals at any horizon are important drivers of job creation. It develops a model with search frictions in the labour market that accounts for imperfectly observed permanent labour productivity changes. The estimation of the model shows that beliefs are important drivers of job creation in economies with larger search frictions. Beliefs explain 2%, 35%, and 55% of employment fluctuations for the US, the UK and France respectively. Furthermore, exogenous belief changes exert a more powerful influence on job creation during times when unemployment is low.
    Keywords: Labour productivity; information frictions; fundamentals and beliefs; equilibrium unemployment growth model; search and matching; business cycles
    JEL: E24 E32 E37
    Date: 2023–09–22
    URL: http://d.repec.org/n?u=RePEc:boe:boeewp:1040&r=lab
  8. By: Piera Bello; Alessandra Casarico; Debora Nozza
    Abstract: We investigate the extent to which research similarity between senior and junior researchers influences promotion in academia and study its implications in terms of gender diversity among faculty. Using data on the universe of job applications for tenure-track assistant professor positions in economics in Italy and exploiting NLP techniques (i.e., document embeddings) on the abstract of each publication of the scholars in our dataset, we propose a novel measure of research similarity, which can capture closeness in research topics, methodologies or policy relevance between candidates and members of selection committees. We show that the level of similarity is strongly associated with the winning probability. Moreover, while there are no gender differences in average similarity, maximum similarity with members of the selection committee is lower for female candidates. This gender gap disappears when similarity is calculated only focusing on female members of the committee. The results suggest that similarity bias in male-dominated environments can have implications for gender and research diversity.
    Keywords: cosine similarity, document embeddings, academia, economics, gender differences, labour force composition
    JEL: J16 J71 J82
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10657&r=lab
  9. By: Wolfgang Keller; Carol H. Shiue
    Abstract: We study the role of marriage for women's intergenerational mobility during the Ming-Qing (1368-1911) period. Using status information based on the timing of marriage from family histories in Central China, already in the early 1500s it is the case that daughters from rich families attain higher status over their lifetime than daughters from poorer families. This intergenerational status persistence is partly due to marital sorting because daughters from high-status families tend to become the wives of sons who themselves come from rich families. Quantitatively, the correlation of 0.6 between the status of biological and in-law families means that marriage accounts for more than one third of total intergenerational status transmission, while not accounting for marriage overestimates mobility by more than 20 percent. Further underscoring the importance of marriage, typically the status of the in-law family plays a larger role for intergenerational status transmission than the child's biological grandparents. Over the period 1500 to 1900, the degree of marital sorting falls, as does intergenerational persistence. Lower investments in the marriage market to find a good match for a daughter go hand in hand with the fall in the returns to son education due to the decline of China's civil service examination.
    JEL: J62 N3
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31695&r=lab
  10. By: Daniela Del Boca; Christopher Flinn; Ewout Verriest; Matthew Wiswall
    Abstract: We construct a dynamic model of child development where forward-looking parents and children jointly take actions to increase the child’s cognitive and non-cognitive skills within a Markov Perfect Equilibrium framework. In addition to time and money investments in their child, parents also choose whether to use explicit incentives to increase the child’s self-investment, which may reduce the child’s future intrinsic motivation to invest by reducing the child’s discount factor. We use the estimated model parameters to show that the use of extrinsic motivation has large costs in terms of the child’s future incentives to invest in themselves.
    Keywords: time allocation, child development, parenting styles
    JEL: J13 D10
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10641&r=lab
  11. By: Enrico Rubolino; Tommaso Giommoni
    Abstract: We study the impact of taxation on the location choices of individuals and tax bases in Italy. We exploit some recent tax decentralization reforms, which granted regions and municipalities greater power in setting income tax rates across brackets. Combining granular micro-level data on tax residence transfers with tax rate variations both within and across locations, we show that taxation significantly shapes location decisions. The mobility response greatly varies across the income distribution, with higher responsiveness among top incomes. Yet, our estimates imply that revenue losses due to tax-induced mobility are small, making local redistribution feasible at least over the medium-run.
    Keywords: local income taxation, migration, tax decentralization
    JEL: H24 H71 J61
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10655&r=lab
  12. By: Nuevo-Chiquero, Ana (Universidad Autónoma de Madrid); Vidal-Fernandez, Marian (University of Sydney); Lehmann, Jee-Yeon K. (University of Houston)
    Abstract: We provide a historical perspective on the birth order effect by examining differences in adult occupational rank among brothers in 19th and early 20th century Netherlands. Using a rich historical dataset compiling administrative birth and marriage registry records linking family members, we further analyze the role of family composition and socio-economic status in modulating the birth order effect. While consistent with findings in modern developed countries, we find that later-born males hold lower-ranked occupations than their older male siblings, we also find that consistent with modern evidence from emerging economies like India and China, this negative birth order effect is primarily driven by differences between the first- and the last-born and their siblings, and by the number of brothers in the family. Birth order differences – particularly the first-born advantage – are larger among socio-economically advantaged families and in more urbanised areas, while the opposite is true for the last-born effect. Surprisingly, the first-born advantage or son-preference is not driven by inheritance rules or transmission of occupations to children born earlier in the family. Taken together, our findings suggest that birth order effects and quantity-quality tradeoffs in families, are not merely modern phenomena but have been a source of context-dependent intrahousehold inequality throughout the centuries.
    Keywords: birth order, first-born, the Netherlands, historical data
    JEL: J01 N14
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp16450&r=lab
  13. By: Rodrigo Ceni (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Maira Colacce (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Gonzalo Salas (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: The article evaluates the link between family movements and children’s socioemotional development. Using a longitudinal survey, we can track the number and role of household members and measure the children’s development. We identify the movements of household members during the first seven years of a child’s life. Our findings indicate that the entry of a new member into the household has a negative impact of approximately 0.2 to 0.3 standard deviations on externalizing and internalizing problems, particularly among low-educated households. These entries affect household life, undermining housing quality and limiting the mother’s ability to manage her time effectively. The limited access to maternity leave and breastfeeding working conditions do intensify these inequalities. By analyzing specific movements, we observe that the father’s long-lasting absence impacts externalizing problems. These results hold strong across different samples and specifications, and our study gains causal power by employing the Oster methodology. Despite the impacts on high- and low-educated households, their background plays a role in coping with stressful environments. In low-educated households, stabilization is not achievable even after several months, further exacerbating socioemotional problems.
    Keywords: family Instability, panel Data, inequality, socio-emotional development, Uruguay
    JEL: J12 J13 R20
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-07-23&r=lab

This nep-lab issue is ©2023 by Joseph Marchand. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.