|
on Labour Economics |
| By: | Pia Heckl; Elisabeth Wurm |
| Abstract: | This paper investigates the impact of workplace breastfeeding laws on the labor supply of mothers. We exploit a unique setting, when throughout 1998-2009 states in the US introduced laws requiring employers to provide break time and a private room for women to express milk or breastfeed. Our results show an increase in breastfeeding initiation and the probability that a child was breastfed at three and six months after birth. We find that workplace breastfeeding significantly increase maternal employment by 4% when children are in breastfeeding age. |
| Keywords: | female labor supply, breastfeeding, workplace policies |
| JEL: | J08 J13 J16 J18 J22 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11248 |
| By: | Naoki Aizawa; Hanming Fang; Katsuhiro Komatsu |
| Abstract: | The United States has experienced a significant decline in labor unions over the past half-century. We examine the aggregate labor market impact of labor unions, the causes of their decline, and their welfare and distributional consequences, accounting for unions’ effects on wages and employers’ insurance provisions. We first provide descriptive evidence that social insurance expansions contribute to the union’s decline. We then develop and estimate an equilibrium labor search model where unionization, wages, employers’ insurance provisions, and job security are endogenously determined. We find that, while skill-biased technological changes and Right-to-Work laws respectively explain 32% and 7% of the union decline from 1955 to 2019, social insurance expansions account for 15%. Our analysis also indicates that social insurance expansion can affect inequality through (de)unionization, and inequality may increase or decrease depending on how social insurance is targeted. Subsidizing unions lowers overall social welfare but increases the welfare of low-skilled workers. |
| JEL: | I13 J42 J51 J52 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32793 |
| By: | Katharine G. Abraham; John C. Haltiwanger; Claire Y. Hou; Kristin Sandusky; James Spletzer |
| Abstract: | Using rich administrative tax data, we explore the effects of the introduction of online ridesharing platforms on entry, employment and earnings in the Taxi and Limousine Services industry. Ridesharing dramatically increased the pace of entry of workers into the industry. New entrants were more likely to be young, female, White and U.S. born, and to combine earnings from ridesharing with wage and salary earnings. Displaced workers have found ridesharing to be a substantially more attractive fallback option than driving a taxi. Ridesharing also affected the incumbent taxi driver workforce. The exit rates of low-earning taxi drivers increased following the introduction of ridesharing in their city; exit rates of high-earning taxi drivers were little affected. In cities without regulations limiting the size of the taxi fleet, both groups of drivers experienced earnings losses following the introduction of ridesharing. These losses were ameliorated or absent in more heavily regulated markets. |
| JEL: | J20 J30 J40 J62 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32766 |
| By: | Francisca M. Antman; Brian Duncan; Michael F. Lovenheim |
| Abstract: | This paper estimates the long-run impacts of banning affirmative action on men and women from under-represented minority (URM) racial and ethnic groups in the United States. Using data from the US Census and American Community Survey, we use a difference-in-differences framework to compare the college degree completion, graduate degree completion, earnings, and employment of URM individuals to non-URM individuals before and after affirmative action bans went into effect across several US states. We also employ event study analyses and alternative estimators to confirm the validity of our approach and discuss the generalizability of the findings. Results suggest that banning affirmative action results in a decline in URM women’s college degree completion, earnings, and employment relative to non-Hispanic White women, driven largely by impacts on Hispanic women. Thus, affirmative action bans resulted in an increase in racial/ethnic disparities in both college degree completion and earnings among women. Effects on URM men are more ambiguous and indicate significant heterogeneity across states, with some estimates pointing to a possible positive impact on labor market outcomes of Black men. These results suggest that the relative magnitude of college quality versus mismatch effects vary for URM men and women and highlight the importance of disaggregating results by gender, race, and ethnicity. We conclude by discussing how our results compare with others in the literature and directions for future research. |
| JEL: | I23 J15 J18 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32778 |
| By: | Oh, Joonseok; Picco, Anna Rogantini |
| Abstract: | Households' income heterogeneity is important to explain consumption dynamics in response to aggregate macro uncertainty: an increase in uncertainty generates a consumption drop that is stronger for income poorer households. At the same time, labor markets are strongly responsive to macro uncertainty as the unemployment rate and the job separation rate rise, while the job finding rate falls. A heterogeneous agent New Keynesian model with search and matching frictions in the labor market can account for these empirical findings. The mechanism at play is a feedback loop between income poorer households who, being subject to higher unemployment risk, contract consumption more in response to heightened uncertainty, and firms that post fewer vacancies following a drop in demand. JEL Classification: E12, E31, E32, J64 |
| Keywords: | HANK and SaM, households' income heterogeneity, precautionary savings |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242971 |
| By: | Alexander Ahammer; Analisa Packham |
| Abstract: | Despite the fact that 30 percent of opioid overdoses also involve a benzodiazepine, there is little policy guidance on how to curb concurrent misuse and even less evidence on how changes to co-prescribing practices can affect patients' economic trajectories. In 2012, Austria restricted access to flunitrazepam, one of the most potent, and most heavily misused, benzodiazepines. We use linked individual-level data to identify opioid users and estimate the reform's impact on their health and labor market outcomes relative to a randomly selected comparison group of non-opioid users. Estimates indicate a 12.7 percent drop in employment, a 13.1 percent increase in unemployment insurance claims, and a 26.5 percent increase in overall healthcare expenditures. We provide suggestive evidence that these effects are due to incapacitating withdrawal symptoms, rather than substitution to other drugs, including heroin or alcohol. |
| JEL: | I18 I38 J18 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32804 |
| By: | Francine D. Blau; Lisa M. Lynch |
| Abstract: | This paper provides an overview of what has happened over the past fifty years for women as they worked to break through professional barriers in economics, policy, and institutional leadership. We chart the progress of women in higher education at the college level and beyond and then go on to examine women’s representation at the upper levels of academia, government, law, medicine, and management. We begin our description of trends in 1972 when Title IX was enacted, prohibiting sex-based discrimination in federally funded educational programs. The data paint a picture of considerable progress but also persistent inequities. We then go on to consider possible explanations for the continuing gender differences and some of the empirical evidence on the factors identified. |
| JEL: | J0 J01 J10 J16 J2 J21 J24 J7 J70 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32820 |
| By: | Francesco Capozza |
| Abstract: | This paper investigates beliefs concerning the gender gap in salary negotiations (GGSN) in a sample of 4, 300 women, 1, 000 men, and 105 HR managers residing in the U.S. The respondents believe in the existence of the GGSN, yet they misperceive its magnitude. Providing respondents with accurate information changes their beliefs about it. However, this does not lead to either an increased demand to join a salary negotiation course or a higher willingness-to-pay to get salary information. The analysis of the competing mental models that women hold reveals that the likely mechanism is the perceived backlash that they may experience from employers if they engage in salary negotiations. Finally, a survey of HR managers suggests that they view negotiating women as facing worse consequences in the workplace than negotiating men. |
| Keywords: | beliefs, mental models, perceived backlash, negotiation, gender |
| JEL: | C93 D83 D91 J16 M52 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11228 |
| By: | Strauß, Susanne; Brüggemann, Ole Jakob; Lang, Julia |
| Abstract: | Previous research has shown that gender pay gaps are perceived as fair or justified, not only by men but also by women. In this paper we analyse whether this gender bias in the evaluation of fair wages still persists and whether the organizational context has an impact on fairness perceptions. We use unique data from a vignette study that was part of a representative online survey of 5, 556 employees in 532 larger firms (> 100 employees) in Germany which are merged to administrative data. This allows us to consider different contextual factors at both the workgroup level and the firm level. In contrast to older studies we find that women tend to evaluate wages of female workers as unfairly too low. Moreover, the perception of (un)fair wages depends on the organizational context. Female supervisors and collective bargaining agreements in firms increase women's awareness for other women's unfairly too low wages, whereas an exchange about wages with co-workers affects the fairness perceptions of both male and female workers. |
| Keywords: | Gender inequality, wages, fairness, organizational context, Germany |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cexwps:300835 |
| By: | Larissa Fuchs (University of Cologne); Matthias Heinz (University of Cologne); Pia Pinger (University of Cologne); Max Thon (University of Cologne) |
| Abstract: | Job advertisements are a key instrument for companies to attract talent. We conduct a field experiment in which we randomize the content of job advertisements for STEM jobs in one of the largest European technology firms. Specifically, we study how highlighting job flexibility and career advancement in job advertisements causally affects the firm’s pool of applicants. We find large treatment effects of entry-, but not for senior-level positions in the firm: highlighting job flexibility increases the total number of female and male applicants, while emphasizing career advancement only raises applications by men. Both effects are entirely driven by applicants residing outside of the federal state in which the firm is located. In a survey experiment among STEM students, we find that the content of job advertisements shapes young professionals’ beliefs about the work environment at the firm. Most importantly, we find that students expect better career benefits, but lower work-life balance when career advancement are highlighted. Our study highlights how job advertisements affect the total number of applications as well as applicants’ quality, diversity, region of residence and beliefs. |
| Keywords: | beliefs, hiring, field experiments, survey experiment, job advertisements, gender |
| JEL: | M51 M52 D22 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:332 |
| By: | Sylvain Dessy; Francesca Marchetta; Roland Pongou; Luca Tiberti |
| Abstract: | The unified growth theory (Galor and Weil, 1996) suggests that a high gender gap in earning power increases fertility rates. This paper presents the first microfounded test of this hypothesis, focusing on the critical age interval where this theory binds. Using household data from rural Madagascar—where restrictive gender norms and reliance on rainfed agriculture are prevalent—we exploit temporal and spatial variations in rainfall deficits at the grid-cell level during the growing season to measure women’s relative economic opportunities. Our analysis, controlling for grid-cell and year-of-birth fixed effects and accounting for the spatial correlation of drought episodes, reveals that drought significantly increases completed fertility only when experienced during adolescence. We show that school dropout among adolescent girls and the widening gender gap in economic opportunities drive this increase. Moreover, drought exposure raises adolescent girls’ marriage hazards and the likelihood of having multiple sex partners, triggering early childbearing, especially in agricultural households without irrigation. This study supports the unified growth theory by linking negative climate shocks to women’s relative earning power and fertility decisions, highlighting the need for policies addressing gender disparities and environmental vulnerabilities. |
| Keywords: | Drought; rainfed Agriculture; Women’s earning power; Completed fertility. |
| JEL: | C12 C13 C14 J12 J13 J16 O12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_14.rdf |
| By: | Gregory Casey; Gregory P. Casey |
| Abstract: | I construct and analyze a growth model in which technical change can increase unemployment. I first analyze the forces that deliver a constant steady state unemployment rate in this setting. Labor-saving technical change increases unemployment, which lowers wages and creates incentives for future investment in labor-using technologies. In the long run, this interaction generates a balanced growth path that is observationally equivalent to that of the standard neoclassical growth model, except that it also incorporates a positive steady state level of unemployment and a falling relative price of investment. I also study the effects of a permanent increase in the ability of R&D to improve labor-saving technologies. In the long run, this change leads to faster growth in output per worker and wages, but it also yields higher unemployment and a lower labor share of income. In the short run, this change exacerbates existing inefficiencies and slows economic growth. |
| Keywords: | growth, unemployment, directed technical change |
| JEL: | E24 O33 O40 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11214 |
| By: | Kosyakova, Yuliya (Institute for Employment Research (IAB), Nuremberg, Germany ; Universität Bamberg); Gatskova, Kseniia (Institute for Employment Research (IAB), Nuremberg, Germany); Koch, Theresa (Institute for Employment Research (IAB), Nuremberg, Germany); Adunts, Davit (Institute for Employment Research (IAB), Nuremberg, Germany); Braunfels, Joseph (Institute for Employment Research (IAB), Nuremberg, Germany); Goßner, Laura (Institute for Employment Research (IAB), Nuremberg, Germany); Konle-Seidl, Regina (Institute for Employment Research (IAB), Nuremberg, Germany); Schwanhäuser, Silvia (Institute for Employment Research (IAB), Nuremberg, Germany); Vandenhirtz, Marie (IAB) |
| Abstract: | "This research report investigates the labor market integration of Ukrainian refugees across various European countries, including many EU member states as well as the UK, Switzerland, and Norway, in the period from Q4 2022 to Q1 2024. Comparing the employment rates of Ukrainian refugees across different countries presents challenges due to the absence of a uniform database, such as the European Labor Force Survey (LFS). To address this, we constructed a comprehensive database that harmonizes employment data from comparable time points and employs consistent definitions for calculating rates. Employment data were obtained from administrative records in countries where available, and from various surveys conducted at different times in other nations. Additionally, this study compiles indicators currently recognized in research as having an influence on labor market integration, using comparable data and definitions to enhance the robustness of the analysis. From the end of 2022 to early 2024, the employment rates of Ukrainian refugees in Europe showed significant variation. By the first quarter of 2024, Germany's employment rate had reached nearly 27 percent, placing it in the European midfield. At the end of 2022, countries such as the UK, the Netherlands, and Lithuania had employment rates exceeding 50 percent, while Croatia, Norway, Romania, Slovenia, Switzerland, and Spain reported rates below 15 percent. Germany also reported a mid-field rate of 20 percent at the end of 2022. Throughout 2023, Denmark, Austria, France, Poland, and Lithuania saw modest increases in employment rates. However, this upward trend did not persist; some countries experienced stagnation, while others, including Romania, saw declines. Conversely, Slovenia, Switzerland, Finland, Spain, and Estonia witnessed slight increases. The UK consistently maintained its high employment rate across the period. In Germany, beyond the influence of seasonal fluctuations, there was a steady annual increase in employment rates, culminating in 27 percent by early 2024. To investigate the reasons behind the varying employment rates of Ukrainian refugees across different European countries, this report delves into the relationships between employment rates and various socio-demographic, institutional, and economic factors. Our objective is to achieve a preliminary, yet more comprehensive understanding of the factors that drive labor market integration of refugees and to assess the impact of these factors. It is important to note that the analyses conducted are descriptive in nature, not causal. They are intended to provide an initial insight into the correlations, helping to identify potential areas for more in-depth, causal research in the future. Multivariate analyses underscore the crucial impact of the demographic composition of newcomers and the institutional and economic conditions in the destination countries on the labor market integration of Ukrainian refugees. Countries with a higher demand for low-skilled labor – measured by the size of the low-status labor market segment or employees in low-skilled occupations – tend to have higher employment rates for these individuals. This may be attributed to the fact that such jobs often have fewer language requirements and other qualifications, allowing for quicker job placements. Additionally, there is a negative correlation between strict labor market regulations, such as enhanced job security measures, and the likelihood of Ukrainian refugees finding employment. Furthermore, a negative correlation exists between the growth rate of unemployment and the employment of Ukrainian refugees, suggesting that newcomers are less likely to secure jobs in countries with increasing unemployment. Social infrastructure significantly impacts the labor market integration of Ukrainian refugees, many of whom are women with children. Consequently, our regression analysis shows that the availability of childcare is correlated with employment rate of refugees. Countries with better childcare facilities tend to see higher employment rates among refugees, as this infrastructure supports the ability of parents, particularly mothers, to enter the workforce. Similarly, comprehensive access to health services also correlates with higher employment rates, as it ensures that refugees are physically and mentally able to work. Interestingly, the relationship between social transfer payments, measured by the ratio of costs for caring for Ukrainian refugee per capita to the gross domestic product per capita of the respective host country, and employment rates is small and statistically insignificant. While it is often assumed that transfer payments play a central role in employment, this hypothesis is not confirmed in our analysis. However, social networks play a critical role in the employment integration of refugees. Countries with a larger Ukrainian community often report higher employment rates among Ukrainian refugees. Additionally, a strong command of English within the destination-country population positively corelates with employment rates, probably because it facilitates better communication and with that integration into the labor market. The integration policy strategies across EU member states and other European countries vary significantly. Some nations adopt a "work first" approach, prioritizing immediate employment without initial preparatory measures such as language courses or qualification measures. This strategy aims at quick job placement but often overlooks the need for the development of comprehensive skill. In contrast, other countries focus on the long-term, sustainable integration into the labor market. These nations implement comprehensive language programs, qualification measures, and targeted job placements that align more closely with the refugees' qualifications. Although this approach may result in so-called "lock-in" effects, where refugees might experience a delayed entry into the labor market, it is more likely to lead to stable employment relationships, jobs that match the refugees' skills, and higher earnings over time. Scandinavian studies underscore these differences in outcomes. Countries that emphasize the "work first" model tend to show higher employment rates for refugees in the short term. However, nations that invest in education and language acquisition demonstrate better integration results in the medium and long term. This success extends beyond mere employment rates and earnings to include broader aspects of social inclusion and quality of life for refugees. Such findings highlight the importance of tailored integration policies that consider both immediate employment needs and long-term societal benefits. The multivariate analyses further confirm the significant impact of demographic factors, particularly family constellation, on labor market integration. There is a statistically significant negative correlation between employment rates and older age and having more children per working-age woman. Finally, the data reveals a positive time trend: employment rates for all demographic groups tend to increase with the length of their residence. This suggests that many of the initial barriers to employment faced by refugees diminish over time, indicating that with longer stays, refugees are more likely to overcome these initial challenges and secure employment. Overall, this report underscores that Germany, with its comprehensive long-term integration strategies, is well-positioned to significantly enhance the employment rates of Ukrainian refugees over the medium to long term. Insights from refugees who arrived between 2013 and 2019 validate this potential, with employment rates reaching 68 percent eight years after arrival. These findings emphasize the necessity of continually reassessing and refining integration strategies to effectively promote the integration of refugees. Such adjustments are crucial not only for improving the immediate economic prospects of refugees but also for contributing to the broader economy, ultimately yielding substantial long-term benefits." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| Date: | 2024–08–02 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabfob:202416(en) |
| By: | Bíró, A.;; Elek, P.; |
| Abstract: | We provide evidence on the impact of firm productivity on the health maintenance of employees. Using linked employer-employee administrative panel data supplemented with healthcare records from Hungary, we analyze the dynamics of healthcare use before and after moving to a new firm. We show that moving to a more productive firm leads to higher consumption of drugs for cardiovascular conditions and more physician visits, without evidence of deteriorating physical health, and, among older workers, to lower consumption of medications for mental health conditions. The results suggest that more productive firms have a beneficial effect on the detection of previously undiagnosed chronic illnesses and on the mental health of their employees. Plausible mechanisms include the higher quality of occupational health check-ups and less stressful job conditions. |
| Keywords: | firm productivity; healthcare use; mover identification; preventive care; |
| JEL: | I10 J32 J62 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:yor:hectdg:24/13 |
| By: | Gerardo Juárez (Banco de México); Emmanuel Chávez (Division of Economics, CIDE); Irvin Rojas (Division of Economics, CIDE) |
| Abstract: | We investigate the effects of the 2014 international oil price bust on economic activity and fiscal outcomes in local oil-producing economies in Mexico. Using synthetic control estimators, we find that the 2014 price bust leads to a substantial decline in economic activity. We estimate an average gap in economic activity of 19.5% in the post-shock period between the realized outcome and the counterfactual scenario with no price shock. The largest estimated effect occurs in the southeastern state of Tabasco (21.6% decrease in economic activity). A collapse in local labor markets and government revenues follows. Fiscal transfers from the federal government do not act as a buffer, leaving local oil-producing states highly vulnerable to price fluctuations. |
| Keywords: | Oil price shock, subnational economies, fiscal policy, synthetic control |
| JEL: | E62 H71 H72 Q35 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte635 |