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on Labour Economics |
| By: | Altmann, Steffen (University of Duisburg-Essen); Mahlstedt, Robert (University of Copenhagen); Rattenborg, Malte Jacob (University of Copenhagen); Sebald, Alexander (Copenhagen Business School) |
| Abstract: | Our study investigates the occupational job search strategies of more than 60, 000 unemployed workers in Denmark. We find substantial heterogeneity in how job seekers allocate their search activities across dierent occupations, and this heterogeneity persists throughout the duration of their unemployment spell. Notably, a considerable proportion of unemployed workers (approximately 30%) search in occupations where they lack relevant experiences. Those aiming for jobs unrelated to their prior experience tend to exhibit the lowest levels of employment and earnings, despite the fact that they target occupations with generally favorable conditions. |
| Keywords: | job search, unemployment, occupational mobility, job finding |
| JEL: | J24 J62 J64 D83 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16696&r=lab |
| By: | Maré, David C. (Motu Economic and Public Policy Research Trust); Fabling, Richard (Independent Researcher); Hyslop, Dean (Motu Economic and Public Policy Research Trust) |
| Abstract: | Past research finds evidence that workers' labour market outcomes are enhanced if they live in areas with greater job opportunities and employment density. Using two alternative measures of the employment density and job opportunities faced by workers in the local labour market in which they were displaced, this paper analyses their effects on the subsequent migration decisions and labour market outcomes of workers who involuntarily lose their jobs as part of a firm closure or mass layoff event. Our analysis finds only limited support for the spatial mismatch hypothesis. The results imply that workers displaced from jobs in areas with greater employment density or job opportunities are more likely to emigrate, are less likely to be re-employed following layoff and have lower subsequent earnings, although earnings are higher conditional on being employed. However, if employed, workers displaced in areas with more opportunities are less likely to have moved area, but more likely to have changed industry, and have a more similar job to that from which they were displaced. |
| Keywords: | displaced workers, unemployment duration, local labour markets |
| JEL: | J62 J64 R23 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16685&r=lab |
| By: | Jimena Villanueva Kiser (Brigham Young University); Riley Wilson (Brigham Young University) |
| Abstract: | Exploiting variation created by Deferred Action for Childhood Arrivals (DACA), we document the effects of immigrant legalization on immigrant mobility investments and economic outcomes. We provide new evidence that DACA increased both geographic and job mobility of young immigrants, often leading them to high-paying labor markets and licensed occupations. We then examine whether these gains to immigrants spill over and affect labor market outcomes of U.S.-born workers. Exploiting immigrant enclaves and source-country flows of DACA-eligible immigrants to isolate plausibly exogenous variation in the concentration of DACA recipients, we show that in labor markets where more of the working-age population can access legal protection through DACA, U.S.-born workers see little-to-no change in employment rates and actually observe increases in wage earnings after DACA’s implementation. These gains are concentrated among older and more educated workers, suggesting immigrant workers complement U.S.-born workers and immigrant legalization generates broader local labor market benefits. |
| Keywords: | Legal states, DACA, immigration, geographic mobility, job mobility, occupational licensing, local labor markets |
| JEL: | J15 K37 R23 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:24-395&r=lab |
| By: | Richard Audoly |
| Abstract: | I study the labor market risks associated with being self-employed. I document that the self-employed are subject to larger earnings fluctuations than employees and that they frequently transition into unemployment. Given that the self-employed are not eligible to unemployment insurance, I analyze the provision of benefits targeted at these risks using a calibrated search model with (i) precautionary savings, (ii) work opportunities in paid and self-employment, and (iii) skill heterogeneity. This exercise suggests that extending the current U.S. unemployment insurance scheme to the self-employed comes with a clear increase in the transition rate from self-employment to unemployment and an unequal benefits-to-contributions ratio across skill groups. At the calibrated parameters, the self-employed in the middle of the skill distribution lose welfare. |
| Keywords: | self-employment; unemployment insurance; earnings dynamics |
| JEL: | J40 J64 J65 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:97625&r=lab |
| By: | Forsythe, Eliza (University of Illinois at Urbana-Champaign) |
| Abstract: | I present four facts about occupational mobility: (1) most movements occur within firms, (2) downward moves are frequent, (3) wage growth reflects the direction and distance of mobility, and (4) relative occupational wages before mobility predict the direction of mobility, except for non-displaced movers between firms. I show these facts are consistent with models of vertical sorting. I show that non-displaced movements between firms obscure the positive selection of upward occupational movers, likely reflecting moves up a firm-wage job ladder. Displaced workers show similar predisplacement selection to internal movers, with pre-displacement occupational wage rank predicting the direction of occupational mobility. |
| Keywords: | job mobility, job ladders, displaced workers |
| JEL: | J31 J62 J63 M51 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16682&r=lab |
| By: | René Böheim (WIFO); Rainer Eppel (WIFO); Helmut Mahringer (WIFO) |
| Abstract: | We analysed a new counselling and support programme for people with low employment prospects in Austria. The Austrian Public Employment Service introduced regional pilots to investigate whether a new counselling strategy could improve labour market outcomes for this group. Eligible unemployed individuals could opt for third-party counselling and support, access a wide range of low-threshold services, and focus on personal stability rather than job placement. The goal was to achieve similar or even better labour market outcomes at lower cost. By comparing pilot and control regions, we found that introducing the offer resulted in higher costs without improving labour market outcomes. |
| Keywords: | Long-Term Unemployment, Active Labour Market Policy, Public employment service, Counselling, Job placement |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2024:i:672&r=lab |
| By: | Cortes, Patricia (Boston University); Feng, Ying (National University of Singapore); Guida-Johnson, Nicolás (Pontificia Universidad Javeriana); Pan, Jessica (National University of Singapore) |
| Abstract: | We examine the differential effects of automation on the labor market and educational outcomes of women relative to men over the past four decades. Although women were disproportionately employed in occupations with a high risk of automation in 1980, they were more likely to shift to high-skill, high-wage occupations than men in over time. We provide a causal link by exploiting variation in local labor market exposure to automation attributable to historical differences in local industry structure. For a given change in the exposure to automation across commuting zones, women were more likely than men to shift out of routine task-intensive occupations to high-skill, high wage occupations over the subsequent decade. The net effect is that initially routine-intensive local labor markets experienced greater occupational gender integration. College attainment among younger workers, particularly women, also rose signicantly more in areas more exposed to automation. We propose a model of occupational choice with endogenous skill investments, where social skills and routine tasks are q-complements, and women have a comparative advantage in social skills, to explain the observed patterns. Supporting the model mechanisms, areas with greater exposure to automation experienced a greater movement of women into occupations with high social skill (and high cognitive) requirements than men. |
| Keywords: | automation, gender, occupational segregation, gender skill gap |
| JEL: | J16 J24 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16695&r=lab |
| By: | Sébastien Fontanay; Libertad González |
| Abstract: | We investigate the impact of paternity leave policies on gender role attitudes in the next generation. We measure gender-stereotypical attitudes using an Implicit Association Test with 3, 000 online respondents in six countries. Using an RD design, we observe a significant reduction (-0.20 SD) in gender-stereotypical attitudes among men born post-paternity leave implementation. This shift influences career choices, as men whose fathers were affected by the reform are more inclined to pursue counter-stereotypical jobs, particularly in high-skilled occupations like healthcare and education. Our findings highlight how paternity leave fosters egalitarian gender norms and affects the occupational choices of the next generation. |
| Keywords: | gender norms, paternity leave, female-dominated occupations, regression discontinuity |
| JEL: | J08 J13 J16 J18 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1422&r=lab |
| By: | Cai, Shu; Zimmermann, Klaus F. |
| Abstract: | Previous research on internal mobility has neglected the role of local identity contrary to studies analyzing international migration. Examining social identity and labor market outcomes in China, the country with the largest internal mobility in the world, closes the gap. Instrumental variable estimation and careful robustness checks suggest that identifying as local associates with higher migrants' hourly wages and lower hours worked, although monthly earnings seem to remain largely unchanged. Migrants with strong local identity are more likely to use local networks in job search, and to obtain jobs with higher average wages and lower average hours worked, suggesting the value of integration policies. |
| Keywords: | assimilation, social identity, labor market, migration, internal mobility, China's Great Migration |
| JEL: | J22 J31 J61 Z13 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:716pre&r=lab |
| By: | Rainer Eppel (WIFO); Ulrike Huemer (WIFO); Helmut Mahringer (WIFO); Lukas Schmoigl (WIFO) |
| Abstract: | There is still a lack of knowledge on how to effectively help the long-term unemployed into employment. We evaluate a wide range of active labour market policies for this target group, using a dynamic matching approach. Measures vary considerably in the extent to which they improve labour market prospects. Human capital-intensive training programmes that substantially enhance vocational skills and employment programmes are most effective, short activating job search training the least. Our results suggest that not only wage subsidies in the private sector, but also direct job creation in the public and non-profit sector can work, if properly designed. |
| Keywords: | Long-term unemployment, Active Labour Market Policy, Public Employment Service, Training, Wage subsidies, Direct job creation |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2024:i:671&r=lab |
| By: | Averett, Susan L. (Lafayette College); Bansak, Cynthia (St. Lawrence University); Condon, Grace (The Boston Consulting Group); Dziadula, Eva (University of Notre Dame) |
| Abstract: | Since 2001, about half of U.S. states have extended in-state college tuition benefits to undocumented immigrants. Some states have also offered financial aid, while others became more restrictive. Building on previous research, we exploit these additional policies, control for Deferred Action for Childhood Arrivals (DACA), and estimate the impact of in-state tuition on college enrollment, college graduation, employment, and self-employment. In our pooled sample of likely undocumented Hispanic youth, we corroborate the most recent work by also finding no effect of in-state tuition policies on enrollment. However, unlike previous studies, we allow for heterogeneity by gender and marital status and we demonstrate that there are gendered impacts. Women do not respond to in-state tuition. In contrast, men do enroll in college at higher rates regardless of financial aid opportunities. In-state tuition access results in higher graduation rates for women, driven by single women, but not for men. In terms of labor market attachment for undocumented youth, we find single women are more likely to work and single men to be self-employed when eligible for in-state tuition. Thus, the in-state policy motivates single women to complete their degrees and work. If policymakers intend to have a broader impact and target a more inclusive group of undocumented youth, including men, they should consider enhancing their opportunities in formal labor markets after college graduation. In support of this argument, we document a higher graduation and employment rates, along with lower self-employment rates, among DACA-eligible youth who have legal access to formal employment. |
| Keywords: | in-state tuition, undocumented immigrants |
| JEL: | J15 I22 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16698&r=lab |
| By: | Ahrens, Achim; Beerli, Andreas; Hangartner, Dominik; Kurer, Selina; Siegenthaler, Michael |
| Abstract: | This paper investigates whether employment restrictions contribute to refugees having poorer labor market outcomes than citizens. Utilizing linked register data from Switzerland and within-canton policy variation between 1999-2015, we find substantial negative effects on employment and earnings when refugees are barred from working upon arrival, excluded from specific sectors or regions, or face resident prioritization. Removing 10% of refugees' outside options reduces job-to-job mobility by 7.5% and wages by 3.0%, widening the wage gap to citizens in similar jobs. The restrictions depress refugees' labor market outcomes even after they apply, but do not spur emigration nor benefit other immigrants. |
| Date: | 2024–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:bqjn2&r=lab |
| By: | Briskar, Juraj (LSE); di Porto, Edoardo (University of Naples Federico II); Rodriguez Mora, José V. (University of Edinburgh); Tealdi, Cristina (Heriot-Watt University, Edinburgh) |
| Abstract: | We analyse thirty years of Italian private sector employment data (1985-2018) to study the dynamics of rising earnings inequality. The total variance surged by 10 log points, with 55% occurring between industries, particularly in a few low-paid service sectors. Workers with low earnings ability showed increased likelihood of working in industries with low average firm premium (sorting) together with other low-earning workers (segregation). Strikingly, parallels with the US emerge. In both, inequality increased predominantly between industries and concentrated within a small number of sectors. Italy's increase primarily stems from low-paying sectors, diverging from the more balanced growth observed in the US across high-paying and low-paying industries. Our findings suggest that despite institutional differences similar underlying forces are at work. |
| Keywords: | earnings inequality, industries, sorting, segregation |
| JEL: | E02 E25 J01 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16693&r=lab |
| By: | Akcigit, Ufuk (Halle Institute for Economic Research (IWH) ; University of Chicago); Alp, Harun (Federal Reserve Board); Diegmann, André (Institute for Employment Research (IAB), Nuremberg, Germany ; Halle Institute for Economic Research (IWH) ; Center for European Economic Research (ZEW)); Serrano-Velarde, Nicolas (Bocconi University ; IGIER ? Innocenzo & Gasparini Institute for Economic) |
| Abstract: | "We develop a labor demand model that encompasses pre-match hiring cost arising from tight labor markets. Through the lens of the model, we study the effect of labor market tightness on firms’ labor demand by applying novel Bartik instruments to the universe of administrative employment data on Germany. In line with theory, the IV results suggest that a 10 percent increase in labor market tightness reduces firms’ employment by 0.5 percent. When accounting for search externalities, we find that the individual-firm wage elasticity of labor demand reduces from -0.7 to -0.5 at the aggregate level. For the 2015 minimum wage introduction, the elasticities imply only modest disemployment effects mirroring empirical ex-post evaluations. Moreover, the doubling of tightness between 2012 and 2019 led to a significant slowdown in employment growth by 1.1 million jobs." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Bundesrepublik Deutschland ; Ostdeutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; Beschäftigtenzahl ; Beschäftigungseffekte ; Beschäftigungsentwicklung ; Betriebsstilllegung ; Industriepolitik ; Personalpolitik ; Privatisierung ; Produktivitätseffekte ; Produktivitätsentwicklung ; staatlicher Zusammenschluss ; Treuhandanstalt ; Unternehmensentwicklung ; Unternehmensziel ; Arbeitsplatzsicherung ; 1990-2000 |
| JEL: | D24 L25 D22 J08 |
| Date: | 2024–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:202401&r=lab |
| By: | Anastasia Litina (University of Macedonia); Luca J. Uberti (University of Milano-Bicocca,); Skerdilajda Zanaj (DEM, Université du Luxembourg) |
| Abstract: | In an era where gender norms vary widely and quite frequently hint to gender inequality in the labor market, previous studies have shown that higher gender diversity is associated with better economic outcomes. Using a novel dataset that provides granular data at the firm level, we test this hypothesis in the context of gold mining companies. We concentrate on a relatively overlooked aspect, namely cost efficiency, and study whether a larger number of women directors is associated with more efficient use of a company’s resources. We use a stochastic frontier methodology to estimate the cost-efficiency of gold mines for a representative sample of global mining companies. Using fixed-effects and instrumental-variable regressions, we find that an increase in female representation on the parent company’s board translates into significant efficiency gains for the mining operations controlled by the parent company. Specifically, a one standard-deviation increase in the share of female directors increases cost-efficiency by 12 percent of a standard deviation of our main efficiency index. This finding is robust to using alternative instruments for female representation, alternative stochastic-frontier methodologies, and different specifications of the main estimating equation. Interestingly, the efficiency gains induced by female directors do not necessarily improve the overall performance of the company as measured by accounting profitability. Yet, cost efficiency is associated with higher cost-sustainability and long-term viability of a firm, thereby rendering it more resilient. This hints that the underlying mechanism is consistent with evidence that suggests that women directors exert a higher monitoring and audit effort than their male counterparts. Our results provide additional evidence of a distinctly female style in corporate leadership and shed light to different aspects of a firm’s productivity. Understanding differences in styles of leadership, allows policy makers to implement more inclusive policies in the labor market and firms to endorse diversity in leadership. This ultimately can lead to more inclusive norms in the labor market. |
| Keywords: | Gender; Boards of directors; Cost efficiency; Stochastic Frontier Analysis; Mining. |
| JEL: | L2 L25 M14 Z1 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:23-18&r=lab |
| By: | Alrababah, Ala; Beerli, Andreas; Hangartner, Dominik; Ward, Dalston |
| Abstract: | The main theories explaining electoral backlash against immigration give centrality to citizens' cultural, economic, and security concerns. We test these predictions in Switzerland, which opened its labor market to neighboring countries in the 2000s. Using a difference-in-differences design, we document that immigration to Swiss border municipalities increased substantially after the borders opened, followed by a more than six percentage point (29%) increase in support for anti-immigrant parties. However, we find no adverse effects on citizens' employment and wages nor on their subjective perceptions of economic, cultural, or security threats. Instead, we describe how far-right parties introduced novel threats to increase hostility toward immigrants. Our evidence demonstrates how elite rhetoric targeted border municipalities and had the greatest effects on voters vulnerable to political persuasion. Together, these findings emphasize the role that elites may play in driving anti-immigrant votes. |
| Date: | 2024–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:hgczq&r=lab |
| By: | Gadi Barlevy; R. Jason Faberman; Salil Gadgil; Bart Hobijn; Aysegul Sahin |
| Abstract: | We discuss how the relative importance of factors that contribute to movements of the U.S. Beveridge curve has changed from 1960 to 2023. We review these factors in the context of a simple flow analogy used to capture the main insights of search and matching theories of the labor market. Changes in inflow rates, related to demographics, accounted for Beveridge curve shifts between 1960 and 2000. A reduction in matching efficiency, that depressed unemployment outflows, shifted the curve outwards in the wake of the Great Recession. In contrast, the most recent shifts in the Beveridge curve appear driven by changes in the eagerness of workers to switch jobs. We argue that, while the Beveridge curve is a useful tool for relating unemployment and vacancies to inflation, the link between these labor market indicators and inflation depends on whether and why the Beveridge curve shifted. Therefore, a careful examination of the factors underlying movements in the Beveridge curve is essential for drawing policy conclusions from the joint behavior of unemployment and job openings. |
| Keywords: | Beveridge curve; Inflation; Job openings; Unemployment |
| JEL: | E52 J6 J20 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:97659&r=lab |
| By: | Meccheri, Nicola; Vergari, Cecilia |
| Abstract: | This paper investigates the issue of how alternative unionization structures in labour markets affect the choice of product quality differentiation by firms in product markets, and how this determines relative welfare outcomes of different union structures. In the presence of decentralized wage bargaining (firm-specific or coordinated unionization), increasing product differentiation not only reduces competition between firms but it also affects wage setting. Instead, when wage setting is centralized, wages do not depend on product quality differentiation in the product market but when the bargained wage is sufficiently high, the high-quality firm monopolizes the market. In turn, union wage setting does affect the endogenous choices by firms of the quality level of their products: especially when unionization is decentralized and unions have high relative bargaining power, the average product quality in the product market increases remarkably. However, as unionization reduces output, consumer surplus and overall welfare are always lower with respect to the case in which labour market is perfectly competitive, and decentralized unionization is generally welfare enhancing with respect to centralized unionization. |
| Keywords: | unionization structures, vertical differentiation, welfare |
| JEL: | J51 L13 L15 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1377&r=lab |
| By: | Randazzo, Teresa (University of Naples Parthenope); Piracha, Matloob (University of Kent) |
| Abstract: | We study the role of immigrant children's ethnic identity in their educational performance and preferences/aspirations in Italy. We find that students with a weak sense of Italian belonging show a low performance in reading and mathematics and higher probability of grade retention. Moreover, children in middle secondary school with a weak sense of Italian identity have a low preference towards academically-oriented high secondary track which normally increases the likelihood of pursuing a university degree. We also find that the intention of immigrant children in high secondary schools to enrol at university decreases if they have a weak Italian identity. We exploit gender heterogeneity finding that females are more adversely affected in their educational aspirations when they have not built a strong sense of Italian identity. Immigrant children will soon form a very important component of the Italian labour force and shedding light on their educational outcomes will help us understand their performance in the Italian labour market better. |
| Keywords: | ethnic identity, educational performance, educational preferences |
| JEL: | F22 J15 I2 Z13 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16739&r=lab |
| By: | Codrina Rada (Department of Economics, University of Utah, USA); Ansel Shiavone (Department of Economics, St. John's University, USA); Rudiger von Arnim (Department of Economics, University of Utah, USA) |
| Abstract: | Neo-Goodwinian theory builds on and extends the classical growth cycle (Goodwin, 1967). It facilitates investigation of short run business cycles and long run economic growth in a unified framework. This paper makes two contributions. First, we summarize recent research on a Keynesian distributive cycle in income-capital ratio, employment rate and labor share. This model generates the Goodwin pattern (short run counter-clockwise cycles in activity-labor share planes) with the Goodwin mechanism (profit-led activity and profit squeeze distribution). Further, the natural rate of growth is wage-led through a positive effect of the labor share on labor productivity growth. The connection of short run profit-led cycles and long run wage-led growth allows for a nuanced discussion of relevant constraints and trade-offs. Second, we respond to renewed criticism that the Goodwin pattern is an artefact of pro-cyclical labor productivity. To clarify this debate, we demonstrate that a two-dimensional model in income-capital ratio and labor share with pro-cyclical labor productivity cannot generate the Goodwin pattern, unless it also features a sufficiently strong Goodwin mechanism. Extending the baseline three-dimensional Keynesian distributive cycle with pro-cyclical labor productivity does not alter key conclusions concerning short run profit led cycles and long run wage led growth. |
| Keywords: | Neo-Goodwinian theory, cyclical growth, labor productivity, secular stagnation |
| JEL: | E12 E25 E32 J50 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:2403&r=lab |
| By: | Jirjahn, Uwe |
| Abstract: | This chapter reviews research on the linkages between corporate globalization and worker representation. Studies have identified various transmission channels through which the activities of foreign multinational companies (MNCs) affect host-country institutions of union and non-union representation. First, countries compete for inbound foreign direct investment (FDI) and the ability to attract FDI depends among others on a country's industrial relations system. Second, once foreign MNCs have invested in a host country, they exert an influence on the country's institutions of worker representation through how their affiliates adapt to those institutions or tend to avoid them. Third, the affiliates of foreign MNCs affect the bargaining power of host-country worker organizations. Fourth, foreign affiliates have an impact on labor conflicts and the quality of industrial relations. Altogether, the available evidence provides indications that the activities of foreign MNCs can be a challenge for worker representation within host countries. |
| Keywords: | Multinational Company, Foreign Direct Investment, Union Avoidance, Bargaining Power, Labor Conflict, Centralized Bargaining, Works Council |
| JEL: | F23 F66 J51 J52 J53 J83 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1369&r=lab |
| By: | Tuuli Paukkeri (VATT Institute for Economic Research and Finnish Centre of Excellence in Tax Systems Research (FIT)); Terhi Ravaska (Tampere University, VATT Institute for Economic Research, Finnish Centre of Excellence in Tax Systems Research (FIT) and CESifo) |
| Abstract: | We study whether disability insurance (DI) recipients increase their labour supply after the introduction of an automatic reinstatement policy, i.e. a programme mitigating the risk of losing eligibility for DI benefits due to a trial period of substantially increased work. We use Finnish administrative data and identify the effect of the policy on partial DI recipients by using partial DI applicants whose application was rejected as a control group. Partial DI recipients by definition have substantial remaining work capacity and are therefore potentially more responsive to programmes affecting work incentives than full DI benefit recipients. The rejected individuals have similar work histories, health impairments and remaining work capacity to those who are allowed benefits, enabling us to estimate the effects of automatic reinstatement on labour supply with a credible control group. Based on our estimation results, automatic reinstatement of benefits increases annual earnings modestly, but for those with mental disorders the effect is larger. |
| Keywords: | disability insurance, labour supply, automatic reinstatement |
| JEL: | J14 H55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fit:wpaper:20&r=lab |
| By: | Congdon Fors, Heather (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | The focus of this report is on child labour, which is a main component of Sustainable Development Goal (SDG) 8.7. After providing a brief background on child labour, this report provides an overview of the factors that research has identified as main contributors to child labor, categorized broadly as either microeconomic factors, macroeconomic factors, or other household factors. Microeconomic factors include household poverty, market imperfections, and the role of education in shaping outcomes while macroeconomic factors include economic growth and globalization. Other relevant parental and household factors are also discussed, such as altruism and cultural norms. The report next provides an overview of policies aimed at combating child labor, including policies related to the legal framework, poverty reduction initiatives, and access to education. A critical evaluation of the indicator used to measure child labor is conducted, focusing on standardization, measurement accuracy, conceptualization, and areas for potential improvement. Finally, the report identifies major challenges faced in eradicating child labor. |
| Keywords: | child labour; policy; sustainable development goals |
| JEL: | D13 J13 J22 O12 |
| Date: | 2024–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0840&r=lab |