nep-lab New Economics Papers
on Labour Economics
Issue of 2024–12–02
twenty-six papers chosen by
Joseph Marchand, University of Alberta


  1. The Labor Market Attainment of Immigrants in the Antebellum United States By Chiswick, Barry R.; Robinson, RaeAnn Halenda
  2. Dividing Housework between Partners: Individual Preferences and Social Norms By Cavapozzi, Danilo; Francesconi, Marco; Nicoletti, Cheti
  3. Caring Dads? Universal Childcare, Paternity Leave and Fathers' Involvement By Huebener, Mathias; Mahlbacher, Malin K.; Schmitz, Sophia
  4. Do Americans Favor Female or Male Politicians? Evidence from Experimental Elections By Poutvaara, Panu; Graefe, Andreas
  5. Short-Time Work Extensions By Brinkmann, Christina; Jäger, Simon; Kuhn, Moritz; Saidi, Farzad; Wolter, Stefanie
  6. The Labor Market Spillovers of Job Destruction By Blank, Michael; Maghzian, Omeed
  7. Can Children's Education Enhance Formal Female Labor Force Participation? By Canavire Bacarreza, Gustavo J.; Yanez, Gunnar Poppe
  8. Do Women Pay for Working from Home? Exploring Gender Gaps in Pay and Wellbeing by Work Location in the UK Cohort Studies By Wielgoszewska, Bożena; Bryson, Alex; Joshi, Heather; Wilkinson, David
  9. Child Penalties in Labour Market Skills By Jessen, Jonas; Kinne, Lavinia; Battisti, Michele
  10. Undergraduate Gender Diversity and the Direction of Scientific Research By Francesca Truffa; Ashley Wong
  11. Intergenerational Spillovers: The Impact of Labor Market Risk on the Housing Market By Leanne Nam
  12. Job Loss and Political Entry By Laura Barros; Aiko Schmei{\ss}er
  13. The Heterogeneous Effects of Active Labour Market Policies in Switzerland By Federica Mascolo; Nora Bearth; Fabian Muny; Michael Lechner; Jana Mareckova
  14. School Closures and Parental Labor Supply: Differential Effects of Anticipated and Unanticipated Closures By Schroeter, Sofia; Lalive, Rafael; Karunanethy, Kalaivani
  15. Social Institutions and Low Birth Rates By Ho, Christine; Wang, Yutao
  16. Job displacement, remarriage and marital sorting By Hanno Foerster; Tim Obermeier; Bastian Schulz
  17. The Rules of the Game: Local Wage Bargaining and the Gender Pay Gap By Olsson, Maria; Nordström Skans, Oskar
  18. The Causal Component in the Intergenerational Transmission of Income By Monique De Haan; Magnus Stubhaug
  19. Work Meaning and the Flexibility Puzzle By Thimo De Schouwer; Iris Kesternich
  20. The China Shock Revisited: Job Reallocation and Industry Switching in U.S. Labor Markets By Nicholas Bloom; Kyle Handley; André Kurmann; Philip A. Luck
  21. Unintended Health Consequences of Decreasing Unemployment Insurance Generosity During an Economic Recession By Manuel Flores; Fernando G. Benavides; Laura Serra-Saurina
  22. Research Excellence Framework (REF), International Research Collaborations and Female Participation By Ajab Khan; Ali Sina Önder; Sercan Ozcan
  23. Okun in the Euro: New Evidence from Structural Okun Law’s Estimates for the Euro Area, 1979-2019 By Nauro F. Campos; Corrado Macchiarelli; Fotios Mitropoulos
  24. Female selection into employment along the earnings distribution By María Eugenia Echeberría
  25. The Geography of Inventors and Local Knowledge Spillovers in R&D By Brian C. Fujiy
  26. Industry and Identity: The Migration Linkage Between Economic and Cultural Change in 19th Century Britain By Vasiliki Fouka; Theo Serlin

  1. By: Chiswick, Barry R. (George Washington University); Robinson, RaeAnn Halenda (George Washington University)
    Abstract: This paper analyzes the occupational status of adult White foreign-born men in the antebellum United States, compared to White native-born men, and among the foreign born by country of origin. Hypotheses are developed regarding the effects on occupational status of human capital, demographic, and immigrant-related variables. The hypotheses are tested using the PUMS data for the 100 percent sample (full count) from the 1850 Census of Population, the first census to ask for the male respondent's occupation, as well as the linked 1850-1860 Census data. Two quantitative measures of occupational status serve as the dependent variables - the Occupational Income Score and the Ducan Socioeconomic Index. The hypotheses are found to be consistent with the data. Moreover, other variables the same, while there is a large gap in occupational status between the foreign and native born just after the former arrive, this gap narrows very quickly and, other variables the same, White male immigrants reached occupational-income parity with their native-born counterparts at about 8.4 years after immigration.
    Keywords: longitudinal analysis (1850-1860), labor market analysis, Antebellum United States, 1850 Census of Population, Duncan Socioeconomic Index, Occupational Income Score, occupational status, immigrants
    JEL: N31 J15 J62
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17382
  2. By: Cavapozzi, Danilo (Università Ca’ Foscari di Venezia); Francesconi, Marco (University of Essex); Nicoletti, Cheti (University of York)
    Abstract: Using UK longitudinal data on dual-earner couples, this paper estimates a model of intrahousehold housework decisions, which combines a randomized experimental framework eliciting counterfactual choices with gender norms differences across ethnicities and cohorts to identify the impacts of individual preferences and gender identity norms. Equal sharing of tasks yields greater utility for both men and women, with women disliking domestic chores as much as men. Although couples would want to use housework arrangements to compensate for differentials in labor market involvement, women end up performing a substantially larger share of housework. This is not due to specialization, rather social norms play a key role. Exposure to more egalitarian gender attitudes significantly increases the probability of choosing an equal share of housework. Were attitudes evened up to the most progressive levels observed in the sample, women doing more housework than their partners would stop to be the norm already among present-day households, except for households with children.
    Keywords: intrahousehold allocation of chores, labor supply, vignettes, gender identity norms, gender gaps
    JEL: C25 C26 D13 J16 J22
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17370
  3. By: Huebener, Mathias (Bundesinstitut für Bevölkerungsforschung (BiB)); Mahlbacher, Malin K. (University of Mainz); Schmitz, Sophia (Federal Institute for Population Research)
    Abstract: Increasing fathers' involvement in childcare is seen as an important strategy to reduce women's child penalties in the labour market. However, very little is known about the extent to which family policies can enhance fathers' engagement in domestic work. This paper examines the impact of the combined availability of universal childcare and paternity leave on fathers' involvement. We exploit quasi-experimental variation in the regional availability of childcare for children under three, resulting from the introduction of a universal childcare entitlement in Germany. We estimate generalised difference-in-differences models and confirm that children enter childcare significantly earlier. Fathers become more likely to take paternity leave with the expectation of mothers entering the labour market sooner. Yet, this leave is mainly taken for the minimum period, together with the mother, and towards the end of the first year. Fathers' subsequent roles as caregivers, as well as their labour market outcomes, remain largely unaffected. Overall, increased childcare availability primarily substitutes maternal care; significant family policy efforts could not immediately alter fathers' caregiving responsibilities within the family.
    Keywords: public childcare, family policies, parental leave, paternal involvement
    JEL: J13 J16 J18 J22 D13
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17422
  4. By: Poutvaara, Panu (University of Munich); Graefe, Andreas (Macromedia University of Applied Sciences)
    Abstract: Women are severely underrepresented in American politics, especially among Republicans. This underrepresentation may result from women being less willing to run for office, from voter bias against women, or from political structures that make it more difficult for women to compete. Here we show how support for female candidates varies by voters' party affiliation and gender. We conducted experimental elections in which participants made their vote choices based solely on politicians' faces. When choosing between female and male candidates, Democrats, and especially Democratic women, preferred female candidates, while Republicans were equally likely to choose female and male candidates. These patterns held after controlling for respondents' education, age, and political knowledge, and for candidates' age, attractiveness, and perceived conservatism. Our findings suggest that voter bias against women cannot explain women's underrepresentation. On the contrary, American voters appear ready to further narrow the gender gap in politics.
    Keywords: gender, elections, gender discrimination, political candidates, redistribution
    JEL: D72 J16 H23
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17376
  5. By: Brinkmann, Christina (University of Bonn); Jäger, Simon (Massachusetts Institute of Technology); Kuhn, Moritz (University of Mannheim); Saidi, Farzad (University of Bonn); Wolter, Stefanie (Institute for Employment Research (IAB), Nuremberg)
    Abstract: Governments use short-time work (STW) schemes to subsidize job preservation during crises. We study the take-up of STW and its effects on worker outcomes and firm behavior using German administrative data from 2009 to 2021. Establishments utilizing STW tend to have higher wages, be larger, and have falling employment even before STW take-up. More adverse selection occurred during the COVID-19 pandemic. Within firms, STW is targeted towards workers likely to stay even in the absence of STW. To study the effects of STW, we examine two dimensions of policy variation: STW eligibility and extensions of potential benefit duration (PBD). Workers above retirement age, ineligible for STW, have identical employment trajectories compared to their slightly younger, eligible peers when their establishment takes up STW. A 2012 reform doubling PBD from 6 to 12 months did not secure employment at treated firms 12 months after take-up, with minimal heterogeneity across worker characteristics. However, treated and control firms experienced substantial and persistent differences in their wage trajectories, with control firms without extensions lowering wages compared to treated firms. Across cells, larger wage effects corresponded with smaller employment effects, consistent with downward wage flexibility preventing layoffs and substituting for the employment protection effects of STW. Our research designs reveal that STW extensions in Germany did not significantly improve short- or long-term employment outcomes.
    Keywords: stabilization policies, short-time work, wage rigidity, labor market institutions, intra-firm insurance
    JEL: J01 J08 J30 J41
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17421
  6. By: Blank, Michael (Stanford U); Maghzian, Omeed (Harvard U)
    Abstract: Should policymakers aim to directly preserve existing jobs during recessions? The answer depends on whether greater job loss exacerbates labor market frictions more than it facilitates productive labor reallocation. This paper provides new evidence on the former by examining the general equilibrium effects of job destruction—establishment-level employment contractions—on labor market conditions following recessionary shocks. To isolate these labor market spillovers from changes in local productivity, we combine administrative data on employment relationships with variation in the idiosyncratic layoff practices of large firms across local labor markets in the United States. Workers who lose their jobs when local job destruction rates are one percentage point higher than average experience a persistent $700 (1.2%) larger reduction in annual earnings, driven by lower employment in the short term and lower-paying positions in the medium term. These spillover effects account for one-third of the increased costs of job loss in recessions compared to expansions and imply that each marginal job loser imposes an annual cost of approximately $17, 000 on other workers in the same labor market. To explore policy implications, we develop a general equilibrium search model featuring heterogeneous firm productivity, endogenous separations, and human capital depreciation in unemployment. To account for the magnitude and persistence of our spillover estimates, the model requires that an increase in job loss reduces the job-finding rate, limiting workers’ human capital growth and their reallocation to more productive firms.
    Date: 2024–11
    URL: https://d.repec.org/n?u=RePEc:ecl:stabus:4222
  7. By: Canavire Bacarreza, Gustavo J. (World Bank); Yanez, Gunnar Poppe (Johns Hopkins University)
    Abstract: Developing countries face significant challenges in increasing women's labor force participation and improving job quality, partly due to the substantial presence of the informal sector. This paper examines the case of Bolivia, which has the highest level of informality in Latin America. We empirically investigate whether the expansion of children's access to education in Bolivia provides an additional explanation for the reduction in female participation in the informal sector, as children attending school would require less parental supervision. Using a structural model in which mothers decide to participate in formal markets at a cost inversely related to the likelihood of their children being enrolled in school, we find that the rise in primary school enrollment in Bolivia explains up to 40% of the decline in female workers under age 40 in informal markets. Our findings contribute to the growing body of evidence on the positive impact of children's access to education on women's labor market outcomes in developing countries.
    Keywords: Bolivia, female labor force participation, structural estimation
    JEL: C62 D13 J12 J13 J16 J21
    Date: 2024–11
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17429
  8. By: Wielgoszewska, Bożena (University College London); Bryson, Alex (University College London); Joshi, Heather (University College London); Wilkinson, David (University College London)
    Abstract: Working from home (wfh) has seen a rise in prevalence, particularly in the wake of the COVID-19 pandemic. Although it is widely believed that wfh enables employees to better combine paid work with domestic duties, potentially enhancing work-life balance, emerging evidence suggests that it may also hinder career advancement and adversely affect mental health, with notable impacts on women. We employ longitudinal data from three British Cohort Studies, collected one year into the COVID-19 pandemic, to investigate the characteristics of those who report working from home and the relationship with gender disparities in hourly wages, mental health, and well-being. Using longitudinal data also allows us to control for cohort members' labour market situation prior to the pandemic, thereby helping to isolate the pandemic's effects. Our findings indicate that individuals who work from home typically receive higher wages compared to those who work from employers' premises, but the gender wage gap is most pronounced among those who work from home. Furthermore, consistent with the flexibility paradox, our analysis reveals that women who work from home - particularly those who work hybrid - experience the most detrimental mental health outcomes.
    Keywords: gender, employment, remote working, working from home, hourly earnings, mental health, COVID-19
    JEL: E51 G21 G28 I2 J16 R51
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17405
  9. By: Jessen, Jonas (WZB - Social Science Research Center Berlin); Kinne, Lavinia (DIW Berlin); Battisti, Michele (University of Glasgow)
    Abstract: Child penalties in labour market outcomes are well- documented: after childbirth, mothers' employment and earnings drop persistently compared to fathers. In addition to gender norms, a potential driver could be the loss in labour market skills due to mothers' longer employment interruptions. This paper estimates child penalties in adult cognitive skills by adapting the pseudo-panel approach to a single cross-section of 29 countries in the PIAAC dataset. We find a persistent drop in numeracy skills after childbirth for both parents between 0.13 (short-run) and 0.16 standard deviations (long-run), but no statistically significant difference between mothers and fathers. Estimates of child penalties in skills strongly depend on controlling for pre-determined characteristics, especially education. Additionally, there is no evidence for worse occupational skill matches for mothers after childbirth. Our findings suggest that changes in general labour market skills cannot explain child penalties in labour market outcomes, and that a cross-sectional estimation of child penalties can be sensitive to characteristics of the outcome variable.
    Keywords: child penalty, cognitive skills, gender inequality, PIAAC
    JEL: I20 J13 J16 J24
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17379
  10. By: Francesca Truffa; Ashley Wong
    Abstract: Can diversity lead to greater research focus on populations underrepresented in science? Between 1960 and 1990, 76 all-male US universities transitioned to coeducation. Using a generalized difference-in-differences design, we find that coeducation led to a 44% increase in gender-related research publications. This increase is driven by research focused on female subjects and gender differences. While coeducation led to a compositional shift with more women and researchers interested in gender topics, much of the increase comes from male incumbent researchers shifting their research focus toward gender-related topics. The results support interaction with more diverse students and peers as key underlying mechanisms.
    Keywords: gender diversity, direction of innovation, scientific research
    JEL: J16 O31 O34
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11294
  11. By: Leanne Nam (University of Bonn)
    Abstract: Unemployment leads to large and persistent income losses for workers. Higher unemployment in the labor market therefore has spillover effects on the housing market. This paper studies such spillover effects from both empirical and theoretical perspectives. Using data from the Current Population Survey (CPS), I show that a 1 percentage point increase in unemployment rate leads to a 1.55% decline in housing prices. Theoretically, I develop an overlapping generations model with a housing market. The calibrated model replicates the empirically observed spillover effect for the U.S. economy. Higher income uncertainty is the main driver of the spillover effect, rather than actual income losses. The spillover effect transmits one-third of the welfare losses of workers due to higher unemployment in the labor market to older, retired households by reducing their housing wealth. Younger workers benefit in part by buying houses at depressed prices. The magnitude of the spillover effect is shaped by the demographic structure of the population and the specific age groups affected by unemployment shocks. I find that increasing the generosity of unemployment insurance stabilizes the housing market, although it only partially mitigates the spillover effect.
    Keywords: Unemployment, Housing demand, Portfolio choice, Overlapping generations
    JEL: G11 R21 E21 E24
    Date: 2024–11
    URL: https://d.repec.org/n?u=RePEc:ajk:ajkdps:344
  12. By: Laura Barros; Aiko Schmei{\ss}er
    Abstract: The supply of politicians affects the quality of democratic institutions. Yet little is known about the economic motivations that drive individuals into politics. This paper examines how experiencing a job loss affects individuals' decisions to enter political life and explores its implications for political selection. Using highly granular administrative data linking individual records of political participation with comprehensive employer-employee data for all formal workers in Brazil, and leveraging mass layoffs for causal identification, we find that job loss significantly increases the likelihood of joining a political party and running for local office. Layoff-induced candidates are positively selected on various competence measures, suggesting that economic shocks may improve the quality of political entrants. Further, we observe that the increase in candidacies is more pronounced among laid-off individuals with greater financial incentives from office holding and higher predicted income losses. Finally, using a regression discontinuity design, we find that eligibility for unemployment benefits increases the likelihood of becoming a party member and running for local office. These results are consistent with the reduction in private-sector opportunity costs and the increased time resources explaining the rise in political entry.
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2410.23705
  13. By: Federica Mascolo; Nora Bearth; Fabian Muny; Michael Lechner; Jana Mareckova
    Abstract: Active labour market policies are widely used by the Swiss government, enrolling more than half of unemployed individuals. This paper analyses whether the Swiss programmes increase future employment and earnings of the unemployed by using causal machine learning methods and leveraging an administrative dataset that captures the population of unemployed and their labour market histories. The findings indicate a small positive average effect on employment and earnings three years after starting a specific Temporary Wage Subsidy programme. In contrast, we find negative effects for Basic Courses, such as job application training, on both outcomes three years after starting the programme. We find no significant effect for Employment Programmes which are conducted outside the regular labour market and Training Courses, such as language and computer courses. The programmes are most effective for individuals with lower education levels and with a migration background from non-EU countries. Last, shallow policy trees provide practical guidance on how the allocation of individuals to programmes could be optimised.
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2410.23322
  14. By: Schroeter, Sofia (University of Lausanne); Lalive, Rafael (University of Lausanne); Karunanethy, Kalaivani (University of Lausanne)
    Abstract: This paper studies the labor supply responses of parents to anticipated school closures due to school holidays and unanticipated school closures due to the COVID-19 pandemic in Switzerland. Using the variation in the timing of school holidays by region, we find that while both fathers and mothers reduce hours worked in response to school holiday closures, fathers reduce theirs much more than mothers. To identify the effects of pandemic school closures, we focus on marginal workers – those in occupations that were resilient to the pandemic labor demand shocks but had limited ability to work remotely and therefore, faced the greatest challenge in meeting increased child care needs. We find that the unanticipated pandemic school closures reduced the hours worked of parents somewhat less than for workers without children. We find almost no negative effects on mothers, while for fathers, we find that their labor supply was affected less than that of men without children. In our heterogeneity analyses, we discover that fathers of older children and/or with greater ability to work remotely were the least affected by these school closures. This suggests that parents were able to successfully accommodate the increased child care needs due to lack of in-person schooling without any negative impact on their labor supply.
    Keywords: COVID-19, school closures, lockdown measures, parental labor supply, gender
    JEL: D13 J16 J22
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17371
  15. By: Ho, Christine (School of Economics, Singapore Management University); Wang, Yutao (School of Economics, Singapore Management University)
    Abstract: We document three cross-sectional stylized facts on labor supply and family formation. First, female labor force participation (FLFP) and total fertility rates (TFRs) are much lower in Eastern societies compared to Western economies. Second, labor hours and the gender pay gap are much higher in the East than in the West. Third, parents invest more on schooling in Eastern societies compared to Western economies. To account for these features, we develop and estimate a rich heterogeneous-agent model with endogenous marriage, fertility, labor supply, and time and money investment in children. Estimates using data from South Korea and the United States highlight the importance of gender norms and long work hours practices in driving down FLFP while child quality mores drive down fertility in South Korea. Our results suggest that a multi-pronged policy approach or reductions in the gender pay gap may help boost both FLFP and fertility in East Asia.
    Keywords: Female labor supply; fertility; child quality; gender norms; long work hours
    JEL: D13 E24 H31 J13 J16 J22
    Date: 2024–10–30
    URL: https://d.repec.org/n?u=RePEc:ris:smuesw:2024_011
  16. By: Hanno Foerster; Tim Obermeier; Bastian Schulz
    Abstract: We investigate how job displacement affects whom men marry and study implications for marriage market matching theory. Leveraging quasi-experimental variation from Danish establishment closures, we show that job displacement leads men to break up if matched with low-earning women and to re-match with higher earning women. We use a general search and matching model of the marriage market to derive several implications of our empirical findings: (i) husbands' and wives' incomes are substitutes rather than complements in the marriage market; (ii) our findings are hard to reconcile with one-dimensional matching, but are consistent with multidimensional matching; (iii) a substantial part of the cross-sectional correlation between spouses' incomes arises spuriously from sorting on unobserved characteristics. We highlight the relevance of our results by simulating how the effect of rising individual-level inequality on between-household inequality is shaped by marital sorting.
    Keywords: marriage market, sorting, search and matching, multidimensional heterogeneity
    Date: 2024–10–28
    URL: https://d.repec.org/n?u=RePEc:cep:cepdps:dp2045
  17. By: Olsson, Maria (Norwegian Business School (BI)); Nordström Skans, Oskar (Uppsala University)
    Abstract: We study how local bargaining institutions affect the within-job gender wage gap among Swedish blue collar workers. Collective agreements with varying degrees of local flexibility tend to cover blue-collar workers across different occupations within the same firm. As a consequence, workers performing the same tasks but in different firms are covered by different agreements. We show that the gender pay gap is substantially reduced in jobs covered by collective agreements that guarantee each worker a minimum pay raise every year. Bargaining constraints have a greater impact on gender equality in settings where females are underrepresented. Effects are smaller in more productive firms as these firms can share rents above the contractual minimum with less constraints, even when formal contracts are rigid. Overall, the results suggest that the specifics of local bargaining institutions can play an important role in shaping gender wage disparities among low-paid workers.
    Keywords: gender equality, collective bargaining, unions
    JEL: J52 J51 J31 J16
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17381
  18. By: Monique De Haan; Magnus Stubhaug
    Abstract: We apply a partial identification analysis using comprehensive Norwegian register data to investigate the causal effect of father’s income on child income. We find a strong association between the incomes of fathers and children. The causal effect, however, equals at least 1% and at most 51% of this observed association. Additionally, we find substantial differences in the intergenerational association and bounds around the causal effect between sons and daughters when considering individual incomes. When examining joint income with their partners, the results are more aligned, indicating that assortative mating plays a key role in intergenerational income transmission, particularly for daughters.
    Keywords: intergenerational income transmission, partial identification, intergenerational mobility, nonparametric bounds
    JEL: J62 C14 D31
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11395
  19. By: Thimo De Schouwer; Iris Kesternich
    Abstract: We study heterogeneity in the prevalence of and preferences for workplace flexibility and work meaning. We show that, internationally, women and parents value flexibility more but do not work more flexible jobs. The gender dimension of this flexibility puzzle is related to differences in meaningful work, which women value higher and sort into, at a significant price corresponding to 20 to 70% less flexibility. The parental dimension is connected to preferences for meaning and flexibility diverging after childbirth. We show through counterfactuals that making meaningful jobs more flexible reduces the gender gap in total compensation by almost a quarter.
    Keywords: work meaning, workplace flexibility, gender, inequality, choice experiment
    JEL: D91 J16 J31
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11300
  20. By: Nicholas Bloom; Kyle Handley; André Kurmann; Philip A. Luck
    Abstract: Using confidential administrative data from the U.S. Census Bureau we revisit how the rise in Chinese import penetration has reshaped U.S. local labor markets. Local labor markets more exposed to the China shock experienced larger reallocation from manufacturing to services jobs. Most of this reallocation occurred within firms that simultaneously contracted manufacturing operations while expanding employment in services. Notably, about 40% of the manufacturing job loss effect is due to continuing establishments switching their primary activity from manufacturing to trade-related services such as research, management, and wholesale. The effects of Chinese import penetration vary by local labor market characteristics. In areas with high human capital, including much of the West Coast and large cities, job reallocation from manufacturing to services has been substantial. In areas with low human capital and a high initial manufacturing share, including much of the Midwest and the South, we find limited job reallocation. We estimate this differential response to the China shock accounts for half of the 1997-2007 job growth gap between these regions.
    JEL: F1 F16
    Date: 2024–11
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33098
  21. By: Manuel Flores (Serra Hunter Fellow, Department of Applied Economics, Universitat Autònoma de Barcelona, 08193 Bellaterra, Barcelona, Spain.); Fernando G. Benavides (Centre d’Investigació en Salut Laboral, Universitat Pompeu Fabra & CIBER of Epidemiology and Public Health); Laura Serra-Saurina (CIBER of Epidemiology and Public Health & Research Group on Statistics, Econometrics and Health (GRECS), University of Girona.)
    Abstract: We exploit an unexpected labor market reform to estimate the effects of a significant decrease in unemployment insurance (UI) generosity during an economic recession. On July 13, 2012, the Spanish Government reduced the replacement rate from 60% to 50% after 180 days of UI benefit receipt for all spells beginning after July 14, 2012. Using rich linked administrative data and a difference-in-differences approach, we show that the decrease in UI generosity resulted in higher sickness absence rates, thereby reducing the previously documented government savings from this reform. Our findings suggest that both financial stress and moral hazard are possible mechanisms.
    Keywords: Unemployment insurance, sickness absence, policy reform, financial stress.
    Date: 2024–11
    URL: https://d.repec.org/n?u=RePEc:uab:wprdea:wpdea2403
  22. By: Ajab Khan (University of Portsmouth); Ali Sina Önder (University of Portsmouth); Sercan Ozcan (University of Portsmouth)
    Abstract: This study investigates the causal effects of the United Kingdom's (UK) Research Excellence Framework (REF) on international research collaborations and female participation in these collaborations in peer-reviewed journal publications in Economics and Business. Using synthetic difference-in-differences and propensity score matching, we analyze data from 98 UK universities (treated) and 116 US universities (control) from 2001 to 2021. Our results show that REF has significantly increased international collaborations by 20.4 percentage points and female participation in these collaborations by 5.6 percentage points across UK universities. Our results also reveal disparities between Russell Group and non-Russell Group universities, with Russell Group universities experiencing a more pronounced effect on fostering female participation in international collaborations. This study contributes to the existing literature by providing causal evidence on the effects of performance-based research funding systems on international collaborations and gender diversity in these collaborations.
    Keywords: Performance-Based Research Funding; International Research Collaborations; Female Participation
    JEL: I23 O38 J16 O32
    Date: 2024–11–08
    URL: https://d.repec.org/n?u=RePEc:pbs:ecofin:2024-08
  23. By: Nauro F. Campos; Corrado Macchiarelli; Fotios Mitropoulos
    Abstract: This paper provides new estimates of Okun’s unemployment-output relationship in euro area countries between 1979 and 2019. We find our structural estimates are stable but substantially lower than the reduced-form estimates that tend to characterise the literature and that the responsiveness of output to unemployment is driven by idiosyncratic factors in both euro core and periphery countries. The results are robust to conditioning on wage bargaining institutional set-ups and, yet, in the euro periphery, we find product market regulation as playing a major role in explaining the significance of Okun’s law estimates across countries.
    Keywords: economic growth, unemployment, Okun’s Law, panel VAR
    JEL: E24 E32 J64 G01
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11314
  24. By: María Eugenia Echeberría (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: n Uruguay, women’s employment rates have increased over recent decades, mostly driven by the increase of labour supply of women in couples. However, a significant gender employment gap remains, which reflects the need of correcting for sample selection in empirical wage gap studies. Recent literature studying gender wage gaps have highlighted the importance of correcting for selection into employment along the earnings distribution. In this study, I estimate the evolution of the gender gap in earnings along the earnings distribution, correcting for selection into employment. Based on the Uruguayan household surveys, Encuesta Continua de Hogares, for the period 2009-2019, I apply the three-step quantile selection model proposed by Arellano and Bonhomme (2017) to estimate the selection-corrected hourly earnings distributions. I use a measure of potential out-of-work income as an instrument to correct for selection into employment. Results show that selection patterns vary across marital statuses. Potential earnings gaps are greater than the uncorrected (raw) earnings gap for individuals in couples in all earnings quantiles, albeit maintaining a decreasing trend over the studied period. The difference between both earning distributions is larger for lower earnings quantiles, suggesting the existence of ’sticky floors’. Lastly, when considering married and cohabiting individuals separately, I find that women’s selection into employment is driven by the selection of married women.
    Keywords: Gender wage gaps, Sticky floors, Sample selection, Quantile regressions, Glass ceiling
    JEL: C21 J16 J31
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:ulr:wpaper:dt-08-24
  25. By: Brian C. Fujiy
    Abstract: I causally estimate local knowledge spillovers in R&D and quantify their importance when implementing R&D policies. Using a new administrative panel on German inventors, I estimate these spillovers by isolating quasi-exogenous variation from the arrival of East German inventors across West Germany after the Reunification of Germany in 1990. Increasing the number of inventors by 1% increases inventor productivity by 0.4%. I build a spatial model of innovation, and show that these spillovers are crucial when reducing migration costs for inventors or implementing R&D subsidies to promote economic activity.
    Keywords: inventors, research and development, innovation, agglomeration, spillovers
    JEL: F16 J61 O4 O31 R12
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:cen:wpaper:24-59
  26. By: Vasiliki Fouka; Theo Serlin
    Abstract: How does economic modernization affect group identity? Modernization theory emphasizes how labor migration led to the adoption of common identities. Yet economic development may reduce incentives to emigrate, preserving local cultures. We study England and Wales during the Second Industrial Revolution, a period characterized by the development of new industries and declines in transportation and communication costs. Using microdata on individuals’ names and migration decisions, we quantify identity change and its variation across space. We develop and estimate a quantitative spatial model in which migration and cultural identities are inter-dependent. Different components of economic modernization had different effects on identity change. Falling migration costs homogenized peripheral regions. In contrast, industrial development led to heterogeneity, increasing the overall prevalence of the culture of London, while also creating local identity holdouts by reducing out-migration from industrializing peripheries. Modernization promotes both national identities and persistent local identities in peripheral regions that industrialize.
    JEL: J6 N0 N33 N63 Z1
    Date: 2024–11
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33114

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