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on Labour Economics |
| By: | Bart K. de Koning; Paul Muller; Michèle Belot; Yvonne Engels; Didier Fouarge; Mario Keer; Philipp Kircher; Sandra Phlippen |
| Abstract: | We design an online platform to connect unemployed job seekers with ‘buddies’: former job seekers who recently found employment. We focus on job seekers who search in occupations with poor prospects and buddies who successfully switched occupations. In a randomized controlled trial, we evaluate the impact of access to the platform on labor market outcomes. We find sizable effects. Thirteen to 18 months after getting access, initially unemployed job seekers are 6 percentage points (11%) more likely to be employed and earn e 226 more per month than those without access. The positive impact is concentrated among the long-term unemployed. |
| JEL: | C93 J62 J64 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34912 |
| By: | Tallås Alhzén, Malin (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | This paper studies how parental leave quotas may foster a more gender-equal division of parental responsibilities by increasing fathers’ uptake of leave beyond the reserved amount. Specifically, the paper examines whether the introduction and expansion of 30-days parental leave quotas in Sweden generated spillover effects on male coworkers’ leave-taking behavior. Using rich population register data and a regression discontinuity design, I find no evidence that the first quota introduced in 1995 affected male coworkers’ uptake of parental leave. In contrast, the 2002 expansion of the quota led to a statistically significant increase of almost nine additional days of parental leave taken by male coworkers. The increase primarily occurred early in the child’s life. As such, the increased uptake can be expected to contribute to a more equal division of parental responsibilities also in the long run. The absence of spillovers following the initial reform is consistent with the first quota being more distorting in nature and offering limited information about longer parental leave spells. The findings underscore the importance of societal context and policy design in shaping behavioral responses to parental leave reforms. |
| Keywords: | Peer effects; Parental leave; Quotas; Co-workers |
| JEL: | J13 J16 J18 Z13 |
| Date: | 2026–03–03 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2026_005 |
| By: | Brenøe, Anne (University of Zurich); Rutnam, Daphne (University of Zurich) |
| Abstract: | We study how adolescents’ second-order beliefs about their parents’ occupational preferences shape gendered career aspirations. In a consequential early-career choice setting, we combine a parental choice experiment with a randomized salience intervention among students. Parents give gendered recommendations, but students substantially overestimate fathers' preference for boys to choose male-dominated occupations as well as mothers' preference for girls to choose female-dominated occupations. Making the same-gender parent salient raises aspirations for gender-congruent occupations, while highlighting the opposite-gender parent and both parents has no effect. Salience does not shift perceived occupational fit, suggesting that identity-based second-order beliefs can reinforce occupational gender segregation. |
| Keywords: | gender norms, second-order beliefs, occupational aspirations, parental beliefs, identity and career choice, early-career choices, choice experiment, field experiment |
| JEL: | J16 J24 I21 C93 D91 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18431 |
| By: | El Haj, Morien (Ghent University); Moens, Eline (Ghent University); Verhofstadt, Elsy (Ghent University); Van Ootegem, Luc (Ghent University); Baert, Stijn (Ghent University) |
| Abstract: | In tight labour markets, where employers compete not only on wages but also on amenities such as job family friendliness, employer-provided childcare arrangements serve as a powerful tool to attract and retain working parents. Yet little causal evidence exists on how employees evaluate such benefits. Therefore, this study uses a scenario experiment among working parents of young children to examine how job attractiveness is shaped by variations in employer-provided childcare arrangements – in terms of location, opening hours, and price – along with the possibility of teleworking. Our results show that all forms of employer-provided childcare increase job attractiveness, with childcare facilities operating on schedules explicitly aligned with employees’ working hours having the strongest effects. Working parents are willing to forego a 20% wage increase in a new job to obtain this latter amenity. They expect such amenity to improve their job satisfaction, performance, stress management, and work–family balance. Our results imply that the policy offers mutual gains for both employees and employers. |
| Keywords: | childcare, telework, job attractiveness, willingness to pay, factorial survey experiment |
| JEL: | C91 J13 J16 J24 J81 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18430 |
| By: | Faberman, Jason (Federal Reserve Bank of Chicago); Mueller, Andreas (University of Zurich); Sahin, Aysegül (Princeton University) |
| Abstract: | This paper studies gender gaps in labor-market outcomes, with a focus on job ladder dynamics. We show that women experience substantially lower wage growth conditional on prior wages despite nearly identical job-to-job transition rates for men and women. To reconcile these observations, we document gender differences in the valuation of nonwage job amenities and in job search behavior, and develop a multi-dimensional job-ladder model with endogenous search effort where workers value both wages and amenities. The model allows for gender heterogeneity in separation rates, search effort, the value of nonemployment, amenity valuations, and bargaining power, enabling a joint analysis of gender wage and employment gaps. A quantitative decomposition shows that differences in preferences for nonwage amenities account for nearly 40 percent of the gender pay gap. Differences in the value of nonemployment and bargaining power explain most of the remainder, with only a limited role for differences in separation rates and search behavior. Finally, we show that increases in job amenities — such as the expansion of remote work — raise the gender wage gap while reducing gender differences in employment. |
| Keywords: | gender wage gap, job search, job amenities, on-the-job search |
| JEL: | J16 J60 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18418 |
| By: | Jongkwan Lee; Seoyoung Kwon; Joan Monràs |
| Abstract: | High-skilled migration programs exist around the world in the hope that immigrants complement native workers, allow firms to grow, and boost innovation. We study the effect of one such program by exploiting the 2016 extension of the Optional Practical Training (OPT) program, which significantly prolonged the work authorization period for international STEM graduates. Using a synthetic difference-in-differences approach, we find that the policy successfully increased the local supply of high-skilled immigrants in exposed Commuting Zones. This local inflow stimulated firm creation and the demand for native high-skilled workers. The program might have also boosted innovation in certain sectors and startup investment, especially in Commuting Zones hosting top-ranked universities, where, overall, the effects tend to be larger. |
| Keywords: | firm dynamics, high-skilled migration, immigration, Labor demand |
| JEL: | F22 J31 J61 R11 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1564 |
| By: | Maré, David (Motu Economic and Public Policy Research Trust); Alimi, Omoniyi (University of Waikato and World Bank) |
| Abstract: | We estimate intergenerational earnings persistence for 6 ethnic groups using linked administrative data for approximately 288, 000 individuals in New Zealand born between 1986 and 1992. Linking data from administrative datasets, censuses, and surveys, we focus on 198, 000 parent-child pairs actively participating in the labour market. Our preferred IV rankrank slope which adjusts for earnings measurement error is 0.27, suggesting that children inherit roughly one-quarter of parental earnings advantage or disadvantage. We analyse relative and absolute persistence, variations by ethnicity and gender, and explore the role of observable characteristics. Finally, we discuss underlying factors influencing persistence, including the potential role of discrimination and racism in labour markets and broader society. |
| Keywords: | intergenerational earnings persistence, ethnicity, Aotearoa New Zealand |
| JEL: | J62 J70 J15 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18422 |
| By: | Jongkwan Lee; Giovanni Peri; Hee-Seung Yang |
| Abstract: | As workforces in high-income countries age and shrink, immigrants increasingly fill entry-level, low-skilled jobs. We examine what happens when this labor supply is abruptly reduced, exploiting South Korea’s sudden suspension of its low-skilled guest worker program following the 2020 COVID-19 border closure. Using policy-driven variation in firms’ pre-pandemic reliance on immigrant labor, we show that the collapse in inflows led to a significant increase in firm exit. Among surviving firms, greater pre-pandemic dependence on immigrant workers resulted in production disruptions and operational delays. Firms did not respond by expanding domestic hiring to replace missing guest workers. Instead, they adjusted by reallocating incumbent Korean employees toward lower-skilled tasks, contributing to occupational downgrading and significant wage declines. These findings suggest that low-skilled immigrant workers were not easily substitutable in the short run and that tighter immigration constraints can impose substantial adjustment costs on both firms and native workers. |
| JEL: | J60 J68 L25 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34927 |
| By: | Aydemir, Abdurrahman (Sabanci University); Girisken, Ahmet (Stockholm School of Economics) |
| Abstract: | This paper studies the causal impact of language skills on human capital accumulation, labor market outcomes, and job characteristics of childhood immigrants across European countries. Using PIAAC data, we adopt an instrumental variable strategy based on the critical age hypothesis and linguistic distance. Our IV results show that higher language proficiency boosts human capital accumulation through formal schooling and actual labor market experience, resulting in improved labor market outcomes in terms of earnings and hours of work. Language proficiency also affects job tasks, increasing employment of reading and abstract tasks while decreasing physical work, and reduces education-job mismatch. These results indicate that language proficiency plays a significant role in enhancing productivity of immigrants in the European context. |
| Keywords: | immigration, language proficiency, labor market, job tasks, PIAAC |
| JEL: | F22 J15 J24 J31 J32 J61 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18421 |
| By: | Atabay, Zeynep (Uppsala University and UCLS); Åslund, Olof (Uppsala University, IFAU, RF Berlin) |
| Abstract: | We examine the wage returns to host-country work experience among immigrants by reconstructing full employment histories using Swedish pension records and longitudinal matched employer–employee data. Our findings show that: (i) returns to experience are sizable and concave, consistent with standard models, and vary by gender, education, and region of origin; (ii) returns for immigrant workers have risen since the early 2000s; (iii) returns differ across industries and occupations, with experience in high-skill and high-wage workplaces being especially valuable; (iv) returns are generally greater for natives than for immigrants; and (v) potential experience serves as a reasonable proxy at lower experience levels but tends to overstate returns for more experienced workers. |
| Keywords: | experience; wages; immigrants |
| JEL: | J31 J61 |
| Date: | 2026–03–09 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2026_006 |
| By: | Howard, Greg (University of Illinois at Urbana-Champaign); Oh, Namgyoon (University of Illinois at Urbana-Champaign); Weinstein, Russell (University of Illinois at Urbana-Champaign) |
| Abstract: | We investigate the effects of 4-year public historically black colleges and universities (HBCUs) on social mobility of nearby Black and White children. To identify a causal effect, we use the historical fact that many HBCUs began as normal schools to train Black teachers, and we argue that the site selection was similar for insane asylums for Black individuals (as well as all asylums). We find that in recent years Black children from Black normal school counties are 7 percentage points more likely to graduate from college and move up 2 percentiles in the income rankings relative to Black children from control insane asylum counties. We do not see these effects for White children. |
| Keywords: | HBCUs, economic mobility, college access |
| JEL: | I23 I24 J15 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18402 |
| By: | Tuda, Dora (Economic and Social Research Institute); Doorley, Karina (Economic and Social Research Institute, Dublin); Sandorova, Simona (Maastricht University) |
| Abstract: | We examine the labour market, welfare receipt and health effects of a reform to the Irish State Pension system which increased the age at which some workers could claim a State Pension. We use longitudinal data on ageing in Ireland and a causal identification strategy based on the random date of birth threshold around which workers with adequate contributions are differently affected by the reform. We find that the reform does not increase the employment probability of those affected. However, we find an increased probability of disability payment receipt for those affected by the reform (+12-13 pp). This effect is robust to extensive sensitivity analysis, multiple hypothesis testing and alternative identification methods. We also find an increase in the probability of receiving unemployment benefit. We find little evidence of worsening mental health outcomes and no effect on subjective or objective physical health outcomes for those affected by the reform. |
| Keywords: | pension age, labour supply, welfare, health |
| JEL: | I10 J14 J18 J26 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18411 |
| By: | Preeya P. Mbekeani; John P. Papay; Ann Mantil; Richard J. Murnane |
| Abstract: | Improving education and labor market outcomes for low-income students is critical for advancing socioeconomic mobility in the United States. We use longitudinal data on five cohorts of 9th grade students to explore how Massachusetts public high schools affect the longer-term outcomes of students, with a special focus on students from low-income families. Using detailed administrative and student survey data, we estimate school value-added impacts on college outcomes and earnings. Observationally similar students who attend a school at the 80th percentile of the value-added distribution instead of a school at the 20th percentile are 11% more likely to enroll in college, are 31% more likely to graduate from a four-year college, and earn 25% (or $10, 500) more annually at age 30. On average, schools that improve students’ longer-run outcomes the most are those that improve their 10th grade test scores and increase their college plans the most. |
| JEL: | I21 I24 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34913 |
| By: | Karbownik, Krzysztof (Emory University); Svaleryd, Helena (Uppsala University); Vlachos, Jonas (Stockholm University); Wang, Xuemeng (Uppsala University) |
| Abstract: | Work-related burnout and stress-related sickness absence have become increasingly prevalent, but evidence on which workplace features shape workers’ mental health remains limited. Using population-level Swedish register data covering all lower- and upper-secondary teachers from 2006–2024, we show that schools serving more disadvantaged students exhibit substantially higher rates of sickness absence, particularly for stress-related diagnoses. Exploiting within-teacher variation across student cohorts, we separate sorting from exposure and find that a one standard deviation increase in student disadvantage raises overall and stress-related sick leave by 3.6% and 8.7%, respectively. Survey evidence indicates that these effects operate through classroom conditions rather than workload or organizational differences. The findings establish client composition as a distinct and policy-relevant determinant of worker health in contact-intensive occupations. |
| Keywords: | student composition, mental health, contact-intensive occupations |
| JEL: | I10 I21 J63 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18404 |
| By: | Frederiksen, Anders (Aarhus University); Junker-Jensen, Louis (Aarhus University) |
| Abstract: | We study the part-time penalty. Using Danish register data, the Danish Labor Force Survey, and hospital personnel records, we show that the pay gap between part-time and full-time workers is sizable and increases over the career because the two groups accumulate different levels of human capital over time. Our best estimates of the part-time penalty are for nurses. The penalty is 14 percent at the beginning of the career and increases by 0.5 percent each year. This pay gap is closely related to the development of nurses' competence level, highlighting the persistent effects that part-time work has on lifetime earnings. |
| Keywords: | part-time penalty, career, gender, pay gap |
| JEL: | M5 J3 J16 J22 J24 J31 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18401 |