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on Labour Economics |
| By: | Moritz Kuhn; Iourii Manovskii; Xincheng Qiu |
| Abstract: | Spatial differences in labor market performance are large and highly persistent. Using data from the United States, Germany, and the United Kingdom, we document striking similarities across these countries in the spatial differences in unemployment, vacancies, and job filling, finding, and separation rates. The novel facts on the geography of vacancies and job filling are instrumental in guiding and disciplining the development of a theory of local labor market performance. We find that a spatial version of a Diamond-Mortensen-Pissarides model with endogenous separations and on-the-job search quantitatively accounts for all the documented empirical regularities. The model also quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle. |
| Keywords: | Unemployment; Search and matching; Vacancies; Local labor markets |
| JEL: | J64 E24 E32 R13 J63 |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmoi:97900&r=lab |
| By: | Martha Bailey; Tanya Byker; Elena Patel; Shanthi Ramnath; Martha J. Bailey |
| Abstract: | We use administrative tax data to analyze the cumulative, long-run effects of California’s 2004 Paid Family Leave Act (CPFL) on women’s employment, earnings, and childbearing. A regression-discontinuity design exploits the sharp increase in the weeks of paid leave available under the law. We find no evidence that CPFL increased employment, boosted earnings, or encouraged childbearing, suggesting that CPFL had little effect on the gender pay gap or child penalty. For first-time mothers, we find that CPFL reduced employment and earnings roughly a decade after they gave birth. |
| Keywords: | gender wage gap, maternity leave |
| JEL: | J08 J16 J71 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10933&r=lab |
| By: | Ellora Derenoncourt; Chi Hyun Kim; Moritz Kuhn; Moritz Schularick |
| Abstract: | Black Americans face higher cyclical unemployment risk than white Americans: job-finding rates during recessions are lower and the risk of becoming long-term unemployed is higher. Differences in unemployment risk across Black and white Americans imply that Black Americans optimally invest less in risky assets. We show that differences in unemployment risk can explain up to 90% of the gap in the stock market shares of Black and white portfolios, resulting in lower returns on wealth for Black Americans. Through this portfolio channel, adverse labor market conditions for Black Americans translate into lower wealth returns and exacerbate racial wealth inequality. |
| Keywords: | Racial Wealth Inequality, Household Portfolio Choice, Unemployment Risk |
| JEL: | D31 G11 E21 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_508&r=lab |
| By: | Gaurav Chiplunkar; Erin M. Kelley; Gregory V. Lane |
| Abstract: | We study how job-seekers share information about jobs within their social network, and its implications for firms. We randomly increase the amount of competition for a job and find that job-seekers are: (i) less likely to share information about the job with their peers; and (ii) choose to selectively share it with fewer higher ability peers. This lowers the quality of applicants received by firms, subsequent hires made, and performance on the job — suggesting that firms who rely on social networks to disseminate job information may see lower quality applicants than expected for their most competitive positions. While randomly offering higher wages attracts better talent, it is not able to fully overcome these strategic disincentives in information sharing |
| JEL: | L14 M51 O12 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32171&r=lab |
| By: | Fiaschi, Davide (University of Pisa); Tealdi, Cristina (Heriot-Watt University, Edinburgh) |
| Abstract: | In this paper, we evaluate the impact of a reform introduced in Italy in 2018 (Decreto Dignità), which increased the rigidity of employment protection legislation (EPL) of temporary contracts, rolling back previous policies, to reduce job instability. We use longitudinal labour force data from 2016 to 2019 and adopt a time-series technique within a Rubin Casual Model (RCM) framework to estimate the causal effect of the reform. We find that the reform was successful in reducing persistence into temporary employment and increasing the flow from temporary to permanent employment, in particular among women and young workers in the North of Italy, with significant effects on the stocks of permanent employment (+), temporary employment (-) and unemployment (-). However, this positive outcome came at the cost of higher persistence into inactivity, lower outflows from unemployment to temporary employment and higher outflows from unemployment to inactivity among males and low-educated workers. |
| Keywords: | labour market flows, transition probabilities, causal ARIMA methodology, policy evaluation |
| JEL: | C18 C53 E32 E24 J6 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16777&r=lab |
| By: | Lina Lozano; Arno Riedl; Christina Rott |
| Abstract: | We investigate experimentally how the menstrual cycle affects bargaining behavior and bargaining outcomes of women. Female participants negotiate in an unstructured bilateral bargaining game with asymmetric information about the allocation of a surplus (’pie size’). We find that the menstrual cycle affects bargaining behavior and that the effects depend on the information players have. Players who are informed about the pie size are less compromising during ovulation and receive higher payoffs conditional on reaching an agreement. Uninformed players achieve higher final payoffs during ovulation, which is mainly driven by higher agreement rates. |
| Keywords: | bargaining, asymmetric information, menstrual cycle, biological factors |
| JEL: | C78 C91 D87 J16 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10932&r=lab |
| By: | Shishir Shakya; Tulasiram Nepal; Edward Timmons |
| Abstract: | The Maintenance of Certification (MOC) program of the American Board of Medical Specialties (ABMS) requires physicians to pass the MOC exam every ten years to maintain board certification. Proponents argue that MOC enhances patient care and physician competencies. Critics perceive it as an expensive, burdensome, and time-consuming recertification process that may lead to the departure of elderly physicians from the workforce. Notably, some states are adopting Anti-MOC laws. Our analysis, employing a generalized difference-in-difference method and event-study frameworks, demonstrates a statistically significant 3.5-6% increase in actively practicing physicians aged 60 and above in states implementing Anti-MOC laws, with no impact on physicians aged below 60. Our findings have implications for healthcare, offering the potential to improve access to quality care and tackle physician shortages in the United States. Key Words: Scope of Practice, anti-Maintenance of certification, physicians |
| JEL: | J01 J08 J21 J44 J7 K30 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-06&r=lab |
| By: | Alexandre Georgieff |
| Abstract: | Open unemployment and joblessness in Switzerland are low compared to OECD standards. Yet, many working individuals remain weakly attached to the labour market, with unstable jobs, or with limited working hours. As an initial step towards a possible in-depth project, this Faces of Joblessness feasibility study provides insight into the nature and incidence of the structural barriers that are likely to prevent individuals from fully engaging in employment and speculates on their possible links with underutilized employment potential. It shows that lack of recent work experience and substantial non-labour or partner income are two key employment barriers in Switzerland. Partner income can be a barrier for women in particular and might be one of the reasons why many women leave stable employment at childbearing age, alongside low supply and high cost of early childhood education and care programs. Workers over 60 also represent a significant underutilized employment potential, as many have taken early retirement. Non-EU migrant are particularly exposed to potential labour market difficulties at younger age, and many of them have low levels of education, poor professional skills or limited work experience. This study also suggests that many jobless are confronted with complex and inter-related employment obstacles. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2024–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:306-en&r=lab |
| By: | Abe, Yukiko |
| Abstract: | Does the high income of the husband explain the low labor market participation by highly-educated women in Japan? In this paper, I examine the income effect gradient of participation using the Employment Status Survey. Negative income effect –the pattern that a high income of the husband decreases labor market participation by the wife– is present for the employment-to-population ratio for annual income above 4 million yen. Negative income effect becomes much weaker when I separate regular and non-regular employment. When I separate regular and non-regular employment, the income effect and other supply variables explain only a small fraction of the differences between participation rates of college graduates and high school graduates. |
| Keywords: | income effect, female employment, Japan, |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hok:dpaper:372&r=lab |
| By: | Laura Carella (IIE-FCE-UNLP); Cecilia Velázquez (CEDLAS-IIE-FCE-UNLP & CENEP & CINVE); Natalia Porto (IIE-FCE-UNLP); Ana Clara Rucci (IIT-FCE-UNLP) |
| Abstract: | A child’s disability increases childcare demands causing two opposing effects on the mother's labor supply: while some types of disability require additional time spent reducing labor supply, othersrequire additional expenses increasing labor supply. This paper studies the effect of a child's disability on mothers' labor supply using data from the 2019-20 IPUMS MICS of Argentina. Four measures of disability are used: children with a functional disability (based on Washington Group criteria); children with functional difficulties for seeing, hearing, or walking; children with difficulties in the remaining functional domains; and children with a disability certificate or pension. The results suggest that having a child with disability certificate or pension reduces a mother's probability of participating in the labor force. No significant effect is found for mothers of a child with a functional disability. However, this arises from two opposing effects: a negative effect on mother’s labor supply of children with difficulties for seeing, hearing, or walking and a positive effect on mothers of children with difficulties in the remaining functional domains. The evidence also shows heterogeneous effects depending on the mother’s education. The (dis)incentive to participate is present for non-graduated mothers, while the effect is not statistically significant for graduated ones. |
| JEL: | I14 J16 J22 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0327&r=lab |
| By: | Katia Begall; Nicole Hiekel (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | The accelerating fertility decline in the most gender equal countries of the world seemingly contradict the central tenet of macro-level theories that predict high fertility in the presence of gender equality. We offer a comprehensive assessment of the individual behavior from which these trends aggregate. We link attitudes towards gender roles and fertility intentions in three Nordic countries. Using recent data (2020-2022) and a multidimensional instrument on gender equality attitudes from the Generations and Gender Programme for Denmark, Finland and Norway on n=15, 547 women and men, we identify three attitude profiles of which one is situated beyond the “non-egalitarian-egalitarian continuum”. The profiles are clearly associated with fertility intentions for childless individuals. We further provide evidence for two theoretical mechanisms that intervene between gender equality attitudes and fertility intentions. Gender equal societies with a favorable opportunity structure for people to have the children they want, may still face challenges associated with low fertility: Fertility intentions are lowest among egalitarians, i.e., the largest population in these countries. While realizing a satisfying division of household labor with their partner enhances fertility intentions among egalitarians more than in the other groups, they do not necessarily prioritize parenthood as their main life objective. |
| JEL: | J1 Z0 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2024-004&r=lab |