nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2011‒08‒09
twenty-two papers chosen by
Erik Jonasson
Lund University

  1. Temporary Contracts and Monopsony Power in the UK Labour Market By Tabasso, Domenico
  2. Informal Workers across Europe: Evidence from 30 Countries By Hazans, Mihails
  3. What Explains Prevalence of Informal Employment in European Countries: The Role of Labor Institutions, Governance, Immigrants, and Growth By Hazans, Mihails
  4. And I Will Try to Fix You: A Study of Heterogeneity in Job Satisfaction with Implications for Flexible Employment Contracts By Chongvilaivan, Aekapol; Powdthavee, Nattavudh
  5. Why does the productivity of education vary across individuals in Egypt ? firm size, gender, and access to technology as sources of heterogeneity in returns to education By Herrera, Santiago; Badr, Karim
  6. The labor market, education and armed conflict in Tajikistan By Shemyakina, Olga N.
  7. Why training older employees is less effective By Zwick, Thomas
  8. Visibility of social security contributions and employment By Iñigo Iturbe-Ormaetxe Kortajarene
  9. Measuring Minimum Award Wage Reliance in Australia: The HILDA Survey Experience By Roger Wilkins; Mark Wooden
  10. War and women's work : evidence from the conflict in Nepal By Menon, Nidhiya; Rodgers, Yana van der Meulen
  11. Informal Caring and Labour Market Outcomes Within England and Wales By Drinkwater, Stephen
  12. Retirement Choice Simulation in Household Settings with Heterogeneous Pension Plans By Li, Jinjing; O'Donoghue, Cathal
  13. Immigration and the Occupational Choice of Natives: a Factor Proportions Approach By Ortega, J.; Verdugo, G.
  14. Severance Pay Mandates: Firing Costs, Hiring Costs, and Firm Avoidance Behaviors By Parsons, Donald O.
  15. Estimating Labor Supply Responses and Welfare Participation: Using a Natural Experiment to Validate a Structural Labor Supply Model By Jörgen Hansen; Xingfei Liu
  16. Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects By Nicolas Hérault; Rezida Zakirova
  17. The Effect of Disability Pension Incentives on Early Retirement Decisions By Barbara Hanel
  18. The Impact of Fertility on Mothers' Labour Supply in Australia: Evidence from Exogenous Variation in Family Size By Julie Moschion
  19. Incentives of Retirement Transition for Elderly Workers: An Analysis of Actual and Simulated Replacement Rates in Ireland By Li, Jinjing; O'Donoghue, Cathal
  20. Are the Labour Market Benefits to Schooling Different for Aboriginal and Non-Aboriginal People By Frenette, Marc
  21. Typology of early professional careers and perceived discrimination for young people of foreign origin By Olivier Joseph; Séverine Lemière; Laurence Lizé; Patrick Rousset
  22. Overconfidence Increases Productivity By Yusuke Kinari; Noriko Mizutani; Fumio Ohtake; Hiroko Okudaira

  1. By: Tabasso, Domenico (Melbourne Institute of Applied Economic and Social Research)
    Abstract: This paper addresses the applicability of the theory of equalizing differences (Rosen, 1987) in a market in which temporary and permanent workers co-exist. The assumption of perfect competition in the labour market is directly questioned and a model is developed in which the labour market is described as a duopsony and the relation between wage and non-monetary job characteristics is studied for workers with different contract lengths. The empirical analysis, based on several waves of the UK Labour Force Data, confirms several of the hypotheses suggested by the model and emphasizes how in the short run workers who have experienced a change in their employer can expect a career trajectory in line with the theory on compensating differentials. In particular, while the wage dynamic related to workers shifting from a temporary contract to another temporary position cannot be exactly predicted, shifts from temporary to permanent contracts tend to be linked to a reduction in wages and a simultaneous increase in travel-to-work distance. Nonetheless, when unobserved characteristics are accounted for in the selection process into temporary contracts, these results lose significance and only a positive relation between wage and commuting time persists, irrespective of the type of contract.
    Keywords: atypical contracts, oligopsony, compensating differentials, commuting time
    JEL: J22 J31 J41 J42 L13
    Date: 2011–07
  2. By: Hazans, Mihails (University of Latvia)
    Abstract: The European Social Survey data are used to analyze informal employment at the main job in 30 countries. Overall, informality decreases from South to West to East to North. However, dependent work without contract is more prevalent in Eastern Europe than in the West, except for Ireland, the UK and Austria. Between 2004 and 2009, no cases found when unemployment and dependent informality rates in a country went up together, suggesting that work without contract is pro-cyclical in Europe. Dependent informality rate is inversely related to skills (measured by either schooling or occupation). The low-educated, the young (especially students), the elderly, and persons with disabilities are more likely to work informally, other things equal. In Southern and Western Europe, immigrants from CEE and FSU feature the highest dependent informality rate, whilst in Eastern Europe this group is second after minorities without immigrant background. In Eastern, Southern and part of Western Europe, immigrants not covered by EU free mobility provisions are more likely to work without contracts than otherwise similar natives. We provide evidence that exclusion and discrimination play important role in pushing employees into informality, whilst this seems not to be the case for informal self-employed. Both on average and after controlling for a rich set of individual characteristics, informal employees in all parts of Europe are having the largest financial difficulties among all categories of employed population (yet they fare much better than the unemployed and discouraged), whilst informal self-employed are at least as well off as formal employees.
    Keywords: informal employment, human capital, discrimination, minorities, immigrants
    JEL: J21 J24 J61 J71 O17 O52
    Date: 2011–07
  3. By: Hazans, Mihails (University of Latvia)
    Abstract: European Social Survey data on 30 countries, covering years 2004-2009, are used to look into joint institutional [and other macro] determinants of the rates of dependent employment without a contract, informal self-employment, and unemployment (secondary jobs are not accounted for). Consistently with theoretical predictions, quality of business environment has a significant negative impact on prevalence of both types of informal employment. The share of non-contracted employees is negatively affected by perceived quality of public services and is positively related to economic growth. GDP per capita has a positive impact on informality in Europe at large and within Eastern and Southern Europe. Other things equal, the share of non-contracted employees in the labor force across all European countries increases with the minimum-to-average wage ratio, with union density, with the share of first and second generation immigrants, and with income inequality, but falls with stricter employment protection legislation (EPL) and higher tax wedge on labor. Thus it appears that in Europe at large, labor cost effects of EPL and taxes are weaker than their impact via perceptions of job security and law enforcement, along with tax morale and the income effect. Yet the EPL effect on informality is positive (i.e., cost-related) when either Eastern and Southern Europe or Western and Northern Europe are considered separately. Furthermore, within Western and Northern Europe, the minimum wage effect is negative, whilst within Eastern and Southern Europe, the union effect is negative. Various panel data methods are used to confirm the robustness of the results.
    Keywords: labor market institutions, informal employment, immigrants, ethnic minorities
    JEL: J08 J21 J51 J61 K31
    Date: 2011–07
  4. By: Chongvilaivan, Aekapol (Institute of Southeast Asian Studies); Powdthavee, Nattavudh (Nanyang Technological University, Singapore)
    Abstract: This paper is an empirical study of slope heterogeneity in job satisfaction. It provides evidence from the generalized ordered probit models that different job characteristics tend to have different distributional impacts on the overall job satisfaction. For instance, standard models tend to significantly underestimate the effects of monthly salary and hours worked at generating the "highly" satisfied workers, whilst lowering the incidence of the "very dissatisfied" workers. Although our results should be viewed as illustrative, we provide discussions of their potential implications for employers and they could help with the design of employment contracts.
    Keywords: generalized ordered probit, employment contract, heterogeneity, job satisfaction, salary, work-life balance
    JEL: J53 D61
    Date: 2011–07
  5. By: Herrera, Santiago; Badr, Karim
    Abstract: The paper estimates the rates of return to investment in education in Egypt, allowing for multiple sources of heterogeneity across individuals. The paper finds that, in the period 1998-2006, returns to education increased for workers with higher education, but fell for workers with intermediate education levels; the relative wage of illiterate workers also fell in the period. This change can be explained by supply and demand factors. On the supply side, the number workers with intermediate education, as well as illiterate ones, outpaced the growth of other categories joining the labor force during the decade. From the labor demand side, the Egyptian economy experienced a structural transformation by which sectors demanding higher-skilled labor, such as financial intermediation and communications, gained importance to the detriment of agriculture and construction, which demand lower-skilled workers. In Egypt, individuals are sorted into different educational tracks, creating the first source of heterogeneity: those that are sorted into the general secondary-university track have higher returns than those sorted into vocational training. Second, the paper finds that large-firm workers earn higher returns than small-firm workers. Third, females have larger returns to education. Female government workers earn similar wages as private sector female workers, while male workers in the private sector earn a premium of about 20 percent on average. This could lead to higher female reservation wages, which could explain why female unemployment rates are significantly higher than male unemployment rates. Formal workers earn higher rates of return to education than those in the informal sector, which did not happen a decade earlier. And finally, those individuals with access to technology (as proxied by personal computer ownership) have higher returns.
    Keywords: Access&Equity in Basic Education,Teaching and Learning,Education For All,Primary Education,Labor Markets
    Date: 2011–07–01
  6. By: Shemyakina, Olga N.
    Abstract: Shortly following its independence in 1991, Tajikistan suffered a violent civil war. This study explores the effect of this conflict on education and labor market outcomes for men and women. The results are based on the data from the 2003 and 2007 Tajik Living Standards Measurement Surveys that were separated from the 1992-1998 Tajik civil war by five and nine years, respectively. The regression analysis that controls for the cohort and regional-level exposure points toward a persistent and lasting gap in the educational attainment by women who were of school age during the war and lived in the more conflict-affected regions as compared with women the same age who lived in the lesser affected regions and also to the older generation. These empirical results support the anecdotal and observational evidence about the decline in female educational attainment in Tajikistan. Interestingly, this group of young women is more likely to hold a job as compared with the rest of the analytical sample. Conditional on being employed, men and women in the more conflict-affected areas do not receive wages that are significantly different from wages received by men and women in the lesser affected areas.
    Keywords: Population Policies,Labor Markets,Gender and Development,Labor Policies,Population&Development
    Date: 2011–07–01
  7. By: Zwick, Thomas
    Abstract: This paper shows that training of older employees is less effective. Training effectiveness is measured with respect to key dimensions such as career development, earnings, adoption of new skills, flexibility or job security. Older employees also pursue less ambitious goals with their training participation. An important reason for these differences during the life cycle might be that firms do not offer the 'right' training forms and contents. Older employees get higher returns from informal and directly relevant training and from training contents that can be mainly tackled by crystallised abilities. Training incidence in the more effective training forms is however not higher for older employees. Given that other decisive variables on effectiveness such as training duration, financing and initiative are not sensitive to age, the wrong allocation of training contents and training forms therefore is critical for the lower effectiveness of training. --
    Keywords: Training,Older Employees,Linked-Employer-Employee Data
    JEL: J10 J24 J28
    Date: 2011
  8. By: Iñigo Iturbe-Ormaetxe Kortajarene (Universidad de Alicante)
    Abstract: Social security contributions in most countries are split between employers and employees. According to standard incidence analysis, social security contributions affect employment negatively, but it is irrelevant how they are divided between employers and employees. This paper considers the possibility that: (i) workers perceive a linkage between current contributions and future benefits and, (ii) they discount employers contributions more heavily, as they are less “visible”. Under these assumptions, I find that employer contributions have a stronger (negative) effect on employment than employee contributions. Furthermore, a change in how contributions are divided that reduces the share of employers is beneficial for employment. Finally, making employers contributions more visible to workers also has a positive effect on employment.
    Keywords: Payroll tax, social security, tax incidence, tax visibility
    JEL: H22 H55 J08
    Date: 2011–07
  9. By: Roger Wilkins (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Mark Wooden (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: An important group of interest for industrial tribunals in Australia is those workers who are reliant on awards for their pay and other employment conditions. Research on award reliance and its consequences, however, has long been hampered by the lack of good quality microdata. Most obviously, there are relatively few data sets in Australia that identify the method by which pay is set and also provide detailed information about individuals and the households in which they live. The HILDA Survey, however, is an exception to this, with information about award reliance, and methods of pay setting more generally, being collected for the first time in its 8th survey wave (in 2008). This paper reviews the quality of the data on award reliance that is being collected from this source. It then provides two examples of how these data can inform policy-relevant research questions: (i) to what extent are award-reliant workers found living in income-poor households; and (ii) what role does award reliance play in contributing to the gender pay gap? The results confirm that award-reliant workers are not especially concentrated in poor households, and that for award-reliant workers there is no evidence of any gender-based pay gap.
    Keywords: Award reliance, Australia, gender pay equity, HILDA Survey, income distribution, minimum wages
    JEL: J31 J50 D31
    Date: 2011–05
  10. By: Menon, Nidhiya; Rodgers, Yana van der Meulen
    Abstract: This paper examines how Nepal's 1996-2006 civil conflict affected women's decisions to engage in employment. Using three waves of the Nepal Demographic and Health Survey, the authors employ a difference-in-difference approach to identify the impact of war on women's employment decisions. The results indicate that as a result of the Maoist-led insurgency, women's employment probabilities were substantially higher in 2001 and 2006 relative to the outbreak of war in 1996. These employment results also hold for self-employment decisions, and they hold for smaller sub-samples that condition on husband's migration status and women's status as widows or household heads. Numerous robustness checks of the difference-in-difference estimates based on alternative empirical methods provide compelling evidence that women's likelihood of employment increased as a consequence of the conflict.
    Keywords: Population Policies,Rural Poverty Reduction,Labor Markets,Regional Economic Development,Gender and Law
    Date: 2011–08–01
  11. By: Drinkwater, Stephen (Swansea University)
    Abstract: This paper focuses on the links between informal care provision and labour market activity at the sub-national level. Within-country analysis of this issue has been very limited to date despite the wide regional variations in informal care provision that often exist. This issue is important in the context of policy decisions in Wales and other parts of the UK because of relatively high levels of informal caring in certain areas, especially in the South Wales Valleys. In particular, given that these areas typically have the lowest economic activity and employment rates, labour market differences can be exacerbated by the provision of informal caring by people of working age. Despite the wide variations in informal care provision, it is found that labour market outcomes do not differ markedly by different care categories across spatial areas within England and Wales. However, the analysis reveals that labour market outcomes for males as well as females are heavily influenced for those who provide high levels of caring, especially in the South Wales Valleys. For example, the largest impact of caring on the probability of not working for males and for part-time work for females is seen in this area.
    Keywords: informal care provision, labour market outcomes, area variations
    JEL: J22 R23
    Date: 2011–07
  12. By: Li, Jinjing (Maastricht University); O'Donoghue, Cathal (Teagasc Rural Economy Research Centre)
    Abstract: This paper estimates a structured life cycle model of family retirement decision using a unique historical dataset back simulated from Living in Ireland survey. Our model takes the advantages of the dataset and models retirement decisions in terms of monetary and leisure incentives, which reflect the complex welfare system in Ireland. The household extension version of the model adapts a collective modelling approach, where the intra-household bargaining is considered. We further incorporate complimentary leisure, which allows us to analyse the interactions of spouses' retirement timing. This methodology enables us to capture the dynamics of retirement and tax-benefit policies and can be used to simulate the effect of policy reform on household retirement behaviours. The paper, in addition, applies the model to assess individual budgetary implications and the labour market impact of rising the minimum retirement age. Our simulation shows that increasing the minimum age for state pension entitlement to 70 would only delay the retirement by less than 2 years according to the individual based model. When we consider the intra-household bargaining and the higher preference of leisure found in the dual career households, the effect of postponing retirement further declines. The result suggests barely postponing the minimum retirement age for state pension without redefining the occupation and private pension rules will only have limited impact for household retirement behaviour in Ireland.
    Keywords: retirement, choice modelling, microsimulation
    JEL: J14 J26
    Date: 2011–07
  13. By: Ortega, J.; Verdugo, G.
    Abstract: This paper evaluates the impact of immigration on the labor market outcomes of natives in France over the period 1962-1999. Combining large (up to 25%) extracts from six censuses and data from Labor Force Surveys, we exploit the variation in the immigrant share across education/experience cells and over time to identify the impact of immigration. In the Borjas (2003) specification, we find that a 10% increase in immigration increases native wages by 3%. However, as the number of immigrants and the number of natives are positively and strongly correlated across cells, the immigrant share may not be a good measure of the immigration shock. When the log of natives and the log of immigrants are used as regressors instead, the impact of immigration on natives’ wages is still positive but much smaller, and natives’ wages are negatively related to the number of natives. To understand this asymmetry and the positive impact of immigration on wages, we explore the link between immigration and the occupational distribution of natives within education/experience cells. Our results suggest that immigration leads to the reallocation of natives to better-paid occupations within education/experience cells.
    Keywords: Immigration, Impact, France.
    JEL: J15 J31
    Date: 2011
  14. By: Parsons, Donald O. (George Washington University)
    Abstract: The potentially adverse labor market effects of severance pay mandates are a continuing source of policy concern. In a seminal study, Lazear (1990) found that contract avoidance of severance pay firing costs was theoretically simple – a bonding scheme would do – but that empirically the labor market distortions were large. Subsequent empirical work resolved the apparent paradox – firing cost effects are modest even without firm avoidance activities. To explore why that should be so, formal measures of severance-induced firing costs and hiring costs are derived. Firing costs are, it turns out, systematically less than benefit generosity alone would imply. Moreover their interrelationship with hiring costs, often employed in empirical studies as a substitute measure, is complex, with co-movements varying in sign and magnitude across policy parameters and the economic environment. Although the analysis assumes a fixed benefit mandate, the cost measures are easily extended to assess the impact of service-linked severance benefits on age-specific employment levels. The model permits design of a cohort-neutral severance mandate – which is not a flat rate structure.
    Keywords: severance pay, firing costs, hiring costs, layoff, employment, insurance, savings, moral hazard
    JEL: J65 J41 J33
    Date: 2011–07
  15. By: Jörgen Hansen; Xingfei Liu
    Abstract: In this paper, we formulate and estimate an economic model of labor supply and welfare participation. The model is estimated on data on single men from Quebec drawn from the 1986 Canadian Census. Budget sets for each work-welfare combination - accounting for income taxes, tax credits and welfare benefit rules - are derived using a microsimulation model. We validate our model by comparing reactions to a welfare reform that implied a dramatic increase in welfare benefits predicted by our model to those obtained by using a regression discontinuity approach. The results show that our model is capable of recovering actual changes in labor supply and welfare participation. We also show the advantage of having estimated a structural model by illustrating how labor supply and welfare participation change when benefit levels change. <P>
    Keywords: labor supply, welfare participation, unobserved heterogeneity, natural experiment, regression discontinuity, microsimulation,
    Date: 2011–07–01
  16. By: Nicolas Hérault (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Rezida Zakirova (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper contributes to the literature by separately analysing the signalling (or sheepskin) effects of the enrolment in and the completion of vocational education and training as well as higher education. Moreover, we investigate the persistence of these sheepskin effects over time. We take advantage of the Longitudinal Surveys of Australian Youth, which contains comprehensive information about completed and uncompleted courses and subsequent labour market outcomes. We find that signalling effects form a substantial part of the total return to education but that they vary by type of course. In addition, we show that both course attendance and course completion contribute to the overall signalling effects.
    Keywords: Return to education, signalling effects, post-secondary education
    JEL: I20 J31
    Date: 2011–03
  17. By: Barbara Hanel (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; and Institute for the Study of Labor (IZA))
    Abstract: I investigate the incentive effects of disability pensions on the labour supply decision. The implicit tax rate on further work is included as a forward looking incentive measure in order to investigate the effect of disability benefits on disability retirement entry as a special type of early retirement. A substantial change of the disability pension legislation caused exogenous variation in disability benefits in Germany in 2001 and is used to obtain estimates of individual’s responses to financial incentives. Benefit levels appear to have no effect on the labour market behaviour. At the same time, there is a sizable and significant disincentive effect of implicit taxes on labour market income, indicating that alleviating such disincentives would likely increase labour force participation. Since the response to financial incentives occurs mainly among those in good health, such a policy might on the other hand imperil the aim of providing insurance against a health induced loss of ones working capacity.
    Keywords: Disability pensions, labour force exit
    JEL: I12 J26
    Date: 2011–03
  18. By: Julie Moschion (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper estimates the impact of fertility on mothers’ labour supply in Australia, using exogenous variation in family size generated by twin births and the gender mix of siblings. Results show that having more than one child decreases labour market participation by 15.5 percentage points and hours worked by around 6 hours per week. Having more than two children reduces labour market participation by between 12 and 20 percentage points and hours worked by between 3 and 8 hours a week, depending on the instrument used. Interestingly, fathers also reduce both their labour market participation (by 10 percentage points) and their number of hours worked per week (by 4 hours) when having more than one child. Compared with the results obtained with the same methodology for other countries, the effects for Australia are large, which partly reflects the constraints on public childcare and the lack of a national paid parental leave scheme prior to 2011.
    Keywords: Fertility, labour market participation, Australia, family policies
    JEL: J13 J22
    Date: 2011–06
  19. By: Li, Jinjing (Maastricht University); O'Donoghue, Cathal (Teagasc Rural Economy Research Centre)
    Abstract: Retirement behaviours and elderly poverty issues have been the subject of much attention and discussion in recent years as most countries are facing a rapidly ageing society. Ireland enjoys a relatively young population compared with other European countries, but is also struggling with increasing fiscal pressures. This paper analyses the retirement pattern and the replacement rate observed in Ireland using the Living in Ireland panel dataset. Since traditional empirical estimations may have selection bias issues as people with low replacement rates may not choose to retire, the paper adopts a combined method with both synthetic household simulation and empirical estimates. The study reveals the social economic attributes patterns associated with the replacement rates and retirement behaviours, and explores the heterogeneities of replacement rates among retirees.
    Keywords: retirement, replacement rates, microsimulation
    JEL: J14
    Date: 2011–07
  20. By: Frenette, Marc
    Abstract: It is well documented that Aboriginal people generally have lower levels of educational attainment than other groups in Canada, but little is known about the reasons behind this gap. This study is the first of two by the same author investigating the issue in detail. This initial paper focuses on one potential reason for differences in educational attainment between Aboriginal and non-Aboriginal individuals: the possibility that Aboriginal individuals reap fewer labour market benefits from additional schooling than do their non-Aboriginal counterparts. The results of this analysis, which is based on the 2006 Census of Population, show that additional schooling is generally associated with a larger decline in the probability of being unemployed for Aboriginal people compared to non-Aboriginal people. In terms of wages and salaries, additional schooling generally yields about the same benefits for both groups. The results hold whether Aboriginal people live off-reserve, on-reserve, or in northern communities. There is also no evidence that Aboriginal people who eventually choose to pursue further education following high school are a more select group than their non-Aboriginal counterparts in terms of academic performance; this suggests that the results in this study are not likely to be explained by self-selection. Furthermore, there is little evidence that perceptions of the benefits to schooling are any different for Aboriginal youth than for non-Aboriginal youth. These findings suggest that the labour market benefits to schooling are not likely to be a factor behind the lower levels of educational attainment among Aboriginal people.
    Keywords: Educational attainment, Labour market outcomes, Aboriginal
    JEL: J15
    Date: 2011–07–27
  21. By: Olivier Joseph (CEREQ - Centre d'études et de recherches sur les qualifications - Ministère de l'Education nationale, de l'Enseignement supérieur et de la Recherche - ministère de l'Emploi, cohésion sociale et logement); Séverine Lemière (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, IUT Paris Descartes - IUT Paris Descartes); Laurence Lizé (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Patrick Rousset (CEREQ - Centre d'études et de recherches sur les qualifications - Ministère de l'Education nationale, de l'Enseignement supérieur et de la Recherche - ministère de l'Emploi, cohésion sociale et logement)
    Abstract: This research focuses on individuals who consider they have been victims of discrimination. The aim is to look at the feeling of discrimination and to assess its effects on career paths seven years after leaving school. Taking data from the Class of 98 (Génération 98) survey by the Céreq, we used the method for grouping self-organising maps (Kohonen's algorithm), supplemented by an econometric analysis to distinguish eight major classes of career paths. In parallel, an interview survey was conducted. The results show a segmentation of career paths at two levels. On the one hand, young people of foreign origin who experienced discrimination are over-represented in certain paths, characterised by unemployment, temping or precarious work (inter- class segmentation). On the other hand, strong inequalities exist within those paths which provide rapid access to stabe employment, as persons obtain lower-quality jobs (intra-class segmentation).
    Keywords: Labor economics, segmentation, discrimination, youth, France.
    Date: 2011–07
  22. By: Yusuke Kinari; Noriko Mizutani; Fumio Ohtake; Hiroko Okudaira
    Abstract: Recent studies report that productivity increases under tournament reward structures than under piece rate reward structures. We conduct maze-solving experiments under both reward structures and reveal that overconfidence is a significant factor in increasing productivity. Specifically, subjects exhibiting progressively higher degrees of overconfidence solve more mazes. This result shows a positive aspect of overconfidence, which usually has been examined in its negative aspect as an expectation bias.
    Date: 2011–08–01

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