nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2012‒10‒27
sixteen papers chosen by
Erik Jonasson
Lund University

  1. Aging and Productivity: Evidence from Piece Rates By Pekkarinen, Tuomas; Uusitalo, Roope
  2. Analyzing the Composition of the Female Workforce - A Semiparametric Copula Approach By Schwiebert, Jörg
  3. The impact of Greek labour market regulation on temporary and family employment - Evidence from a new survey By Achilleas Anagnostopoulos; Stanley Siebert
  4. Estimating Gender Differences in Access to Jobs By Gobillon, Laurent; Meurs, Dominique; Roux, Sébastien
  5. Do firm size and firm age affect employee remuneration in Dutch SMEs? By Jan de Kok
  6. For Some Mothers More Than Others: How Children Matter for Labour Market Outcomes When Both Fertility and Female Employment Are Low By Karbownik, Krzysztof; Myck, Michal
  7. Wages and On-the-Job Training in Tunisia By Christophe Muller; Christophe J. Nordman
  8. Wages, Amenities and Negative Attitudes By Waisman, Gisela; Larsen, Birthe
  9. Economic Analysis of Earnings in Pakistan: A Case of Sargodha District By Safana, Shaheen; Masood, Sarwar; Muhammad, Waqas; Amir , Aslam
  10. Are Aging Baby Boomers Squeezing Young Workers Out of Jobs? By Alicia H. Munnell; Rebecca April Yanyuan Wu
  11. Son Preference and Children's Housework: The Case of India By Lin, Tin-chi; Adsera, Alicia
  12. Bridge Jobs in Europe By Brunello, Giorgio; Langella, Monica
  13. Revisiting the Composition of the Female Workforce - A Heckman Selection Model with Endogeneity By Schwiebert, Jörg
  14. Hours and Employment in the Cross-Section and Over the Cycle By Sun-Bin Kim; Richard Rogerson; Yongsung Chang
  15. Does Cultural Heritage Affect Job Satisfaction: The Divide between EU and Eastern Economies By Mojsoska-Blazevski, Nikica; Petreski, Marjan
  16. Immigrants' Time Use: A Survey of Methods and Evidence By Ribar, David C.

  1. By: Pekkarinen, Tuomas (Aalto University); Uusitalo, Roope (HECER)
    Abstract: We evaluate the effects of aging on productivity using piece-rate earnings as a proxy for worker output. Our data contain the population of Finnish blue collar workers in 61 different industries during 1990-2002. A unique feature of the data is that we can observe the exact hours worked on piece rates and on fixed time rates as well as earnings under both performance schemes. We account for the selection into piece rates by using firm-level changes in pay systems as instruments for the probability of working on piece rates. A subset of workers also receive both piece rates and time rates within the same quarter. For these workers, we can directly compare the age profile of hourly earnings under piece rates and fixed rates. The results indicate that productivity increases with age until age 40 after which it stays roughly constant. Wage growth is faster than productivity growth for young workers but after age 40 both wages and productivity grow approximately at the same rate.
    Keywords: piece rates, productivity, aging
    JEL: J1 J24 J33
    Date: 2012–10
  2. By: Schwiebert, Jörg
    Abstract: We provide a semiparametric copula approach for estimating a "classical" sample selection model. We impose that the joint distribution function of unobservables can be characterized by a specifc copula, but the marginal distribution functions are estimated semiparametrically. In contrast to existing semiparametric estimators for sample selection models, our approach provides a measure of dependence between unobservables in main and selection equation which can be used to analyze the composition of, say, the female workforce. We apply our estimation procedure to a female labor supply data set and show that those women with the best skills participate in the labor market; moreover, we find evidence for the existence of an ability threshold which involves that women with high ability are to some extent advantaged and, therefore, have also obtained the best skills.
    Keywords: Sample selection model, semiparametric estimation, copula approach, composition of the female workforce, female labor force participation
    JEL: C21 C24 J21 J31
    Date: 2012–10
  3. By: Achilleas Anagnostopoulos; Stanley Siebert
    Abstract: This paper uses an original dataset for 206 workplaces in Thessaly (Greece), to study consequences of Greece’s employment protection law (EPL) and national wage minimum for temporary employment. We find higher temporary employment rates especially among a “grey” market group of workplaces that pay low wages and avoid the national wage minimum. A similar factor boosts family employment. We also find that EPL “matters”, in particular, managers who prefer temporary contracts because temps are less protected definitely employ more temps. We discuss whether temporary and family work is a form of escape from regulation for less prosperous firms.
    Keywords: Employment protection; Greece; National wage agreements; Temporary work.
    Date: 2012–09
  4. By: Gobillon, Laurent (INED, France); Meurs, Dominique (University Paris Ouest-Nanterre); Roux, Sébastien (DARES French Ministry of Labour)
    Abstract: This paper proposes a new measure of gender differences in access to jobs based on a job assignment model. This measure is the probability ratio of getting a job for females and males at each rank of the wage ladder. We derive a non-parametric estimator of this access measure and estimate it for French full-time executives aged 40-45 in the private sector. Our results show that the gender difference in the probability of getting a job increases along the wage ladder from 9% to 50%. Females thus have a significantly lower access to high-paid jobs than to low-paid jobs.
    Keywords: gender, discrimination, wages, quantiles, job assignment model, glass ceiling
    JEL: J16 J31 J71
    Date: 2012–10
  5. By: Jan de Kok
    Abstract: Various studies have indicated the presence of firm size wage gaps and firm age wage gaps in the remuneration of employees. This study shows that a firm size wage gap also exists in the population of Dutch Enterprises with 1 – 100 employees, but that there is no sign of a firm age wage gap. The firm size wage gap can be partially explained by the age and educational level of the employee, as well as by the educational level of the entrepreneur. The usage of performance-related pay also varies with firm size (and not with firm age). This firm size effect can be explained fully by employee tenure (rather than age and education).
    Date: 2012–10–16
  6. By: Karbownik, Krzysztof (Uppsala University); Myck, Michal (Centre for Economic Analysis, CenEA)
    Abstract: We estimate the causal relationship between family size and labour market outcomes for families in low fertility and low female employment regime. Family size is instrumented using twinning and gender composition of the first two children. Among families with at least one child we identify the average causal effect of an additional child on mother's employment to be -7.1 percentage points. However, we find no effect of additional children on female employment among families with two or more kids. Heterogeneity analysis suggests no causal effects of fertility on female employment among mothers with less than college education and older mothers (born before 1978). Furthermore, we find evidence for the interaction of family size with maternal education and age. An unintuitive feature of our finding is that we identify a positive bias of OLS estimates for highly educated mothers and for mothers born after 1977.
    Keywords: labour supply, family size, female employment
    JEL: J13 J22
    Date: 2012–10
  7. By: Christophe Muller (Aix-Marseille Université); Christophe J. Nordman (IRD, DIAL and IZA)
    Abstract: In this paper, we conduct an econometric analysis of the links of on-the-job training (OJT) and worker remuneration in the area of Tunis using a case study data based on eight firms. We pay particular attention to the way the OJT cost may be shared between firms and workers. This is done through analysing the sign of various OJT variables and different wage information. This is important because training costs may be a major obstacle to intra-firm human capital accumulation in Tunisia. However, in this emerging economic context where severe tensions are present on the labour market, firms may be tempted to extract most of the labour relation surplus by having workers implicitly paying for their within-firm training. Our estimates show that: (1) The duration of former OJT negatively influences starting wages, while there is no anticipated effect of future training on wages at the firm entry; (2) Current wages are positively affected by former OJT but negatively affected by ongoing OJT; (3) Trend factors seem too much affect the influence of OJT on wages growth; (4) OJT main determinants are education, gender, family situation and firm characteristics, but neither experience nor tenure. Overall, our estimation results are consistent with popular human capital theory and broader OJT cost sharing theories. They suggest that firms bear much of the cost of OJT, which may jeopardize their profitability. Public subsidies for OJT programmes may be an appropriate policy response. However, the latter are sustainable only if they are supported by adequate public education systems, allowing efficient OJT within firms.
    Keywords: wage, on-the-job training, matched worker-firm data, Tunisia.
    JEL: J24 J31 O12
    Date: 2012–08
  8. By: Waisman, Gisela (Stockholm University); Larsen, Birthe (Department of Economics, Copenhagen Business School)
    Abstract: We exploit the regional variation in negative attitudes towards immigrants to Sweden in order to analyse the consequences of the attitudes on immigrants welfare. We find that attitudes towards immigrants are of importance: they both affect their labour market outcomes and their quality of life. We interpret the negative effect on wages as evidence of labour market discrimination. We estimate the welfare effects of negative attitudes, through their wage and local amenities, for immigrants with different levels of skills, origin, gender and age.
    Keywords: Attitudes towards immigration; Geographical Mobility; Wages; Amenities
    JEL: J15 J31 J61 J71
    Date: 2012–01–25
  9. By: Safana, Shaheen; Masood, Sarwar; Muhammad, Waqas; Amir , Aslam
    Abstract: This paper investigates human capital and socio-economic factors in order to find out the personal earnings of workers in Sargodha District. The Multiple Indicator Cluster Survey data 2007-08 of Punjab has been used. Education and age are used as variables for human capital whereas, gender, age, age square, different classes of age, marital status, area, different education level, employment status, and tehsil dummies are used to investigate the determinants of personal earnings of the workers of Sargodha district. Ordinary least square results explore that education and age plays an important role in the determination of personal wage. Moreover, as the level of education increases the returns to each year of education also increases. Male workers earn more than female which indicates gender discrimination in the labour market. The most productive age is 40-45 years. The individual belongs to rural areas earn more than urban counterparts. When we analyzed the earning pattern in the context of different occupational classes the magnitude of agricultural sector is high. Hence, these facts highlight the importance of a district level growth/economic strategy because the dynamics and geography of each district is different from the other and the earning pattern of a particular district is closely aligned with its demographic conditions.
    Keywords: Human Capital; New Growth Strategy; Sargodha; Earnings
    JEL: J41 J24 R11
    Date: 2012–10–11
  10. By: Alicia H. Munnell; Rebecca April Yanyuan Wu
    Abstract: As life expectancy increases and the retirement income system contracts, households face an enormous challenge in ensuring a secure retirement. Working longer is often hailed as the best way to increase retirement incomes. But some suggest that more work by older persons reduces the job opportunities for younger persons. This contention, known as the “lump of labor” theory, is widely accepted in many European countries and has provided an economic rationale for early retirement programs. However, economists in the United States generally reject this theory, arguing that the labor market is dynamic and the economy can adapt to labor force changes. Nevertheless, “crowding out” has received increased media attention in the wake of the Great Recession and, if generally accepted, could impede the trend towards working longer. This brief investigates whether any empirical support exists for the lump of labor theory. The report proceeds as follows. The first section introduces the lump of labor theory and summarizes the existing evidence. The second section describes the data and basic methodology used in the analysis. The third section presents the baseline results, followed by the results of numerous tests of the strength of the findings. The fourth section describes the results of a separate test for the Great Recession. The fifth section identifies the causal relationship between the labor force activity of the old and the young. The final section concludes that there is no evidence that increasing the employment of older persons reduces the job opportunities or wage rates of younger persons.
    Date: 2012–10
  11. By: Lin, Tin-chi (Princeton University); Adsera, Alicia (Princeton University)
    Abstract: Son preference in countries like India results in higher female infant mortality rates and differentially lower access to health care and education for girls than for boys. We use a nationally representative survey of Indian households (NFHS-3) to conduct the first study that analyzes whether son preference is associated with girls bearing a larger burden of housework than boys. Housework is a non-negligible part of child labor in which around 60% of children in our sample are engaged. The preference for male offspring is measured by a mother's ideal proportion of sons among her offspring. We show that when the ideal proportion increases from 0 to 1, the gap in the time spent on weekly housework for an average girl compared to that of boy increases by 2.5 hours. We conduct several robustness analyses. First, we estimate the main model separately by caste, religion and family size. Second, we use a two-stage model to look at participation into housework (as well as other types of work) in addition to hours. Third, we use mother's fertility intentions as an alternative measure of son preference. The analysis confirms that stated differences in male-preference translate in de facto differences in girl's treatment.
    Keywords: son preference, child labor, housework, India, National Family Health Survey
    JEL: J13 J22 O15 J16
    Date: 2012–10
  12. By: Brunello, Giorgio (University of Padova); Langella, Monica (University of Padova)
    Abstract: We study the transitions from career to bridge jobs and to permanent retirement by European males aged 55 to 70 at the time of the interview in the late 2000s. We find that only 10.54 percent of the workers in our sample who were in a career job at age 50 have moved to a bridge job by the time of the interview, much less than what usually found in the United States. We also show that the exogenous increases in minimum retirement age that occurred during the past twenty years have had different effects in Central / Northern Europe (Austria, Switzerland, The Netherlands and Sweden) and in Mediterranean Europe (Italy and Spain). In the North, transitions into bridge jobs have increased, with no significant effect on transitions into retirement. In the South, transitions into permanent retirement have decreased, with no significant effect on transitions into bridge jobs.
    Keywords: ageing, retirement, Europe
    JEL: J26
    Date: 2012–10
  13. By: Schwiebert, Jörg
    Abstract: In this paper, we revisit the Mulligan and Rubinstein (2008: Selection, investment and women's relative wages over time. The Quarterly Journal of Economics, 123(3):1061-1110) analysis about the composition of the female workforce in the United States. Using a Heckman selection model, these authors found that the selection of women into the female workforce changed from negative to positive over time. However, the authors assumed the exogeneity of covariates, which is sometimes appropriate but not for a variable like education. We revisit the issue of the Mulligan and Rubinstein (2008) paper by developing and applying a Heckman selection model which also controls for the potential endogeneity of education. Applying this estimator to U.S. Census and American Community Survey data, we find that selection has become more positive over time (like in Mulligan and Rubinstein), but that selection has never been negative. We rather find an interesting puzzle concerning the correlation pattern of the unobservables in our model which requires further investigation.
    Keywords: Sample selection model, endogenous covariates, gender wage gap, composition of the female workforce, female labor force participation
    JEL: C21 C24 C26 J21 J31
    Date: 2012–10
  14. By: Sun-Bin Kim (Yonsei University); Richard Rogerson (Princeton University); Yongsung Chang (University of Rochester / Yonsei Univ.)
    Abstract: We develop a heterogeneous-agent general equilibrium model that incorporates both intensive and extensive margins of labor supply. A nonconvexity in the mapping between time devoted to work and labor services distinguishes between extensive and intensive margins. We consider calibrated versions of this model that differ in the value of a key preference parameter for labor supply and the extent of heterogeneity. The model is able to capture the key features of the empirical hours worked distribution, including how individuals transit within this distribution. We then study how the various specifications influence labor supply responses to temporary shocks and permanent tax changes, with a particular focus on the intensive and extensive margin elasticities in response to these changes. A key finding is that these two elasticities are jointly determined and cannot be thought of as two independent properties of aggregate labor supply.
    Date: 2012
  15. By: Mojsoska-Blazevski, Nikica; Petreski, Marjan
    Abstract: The objective of this paper is to examine the factors influencing worker’s job satisfaction aside the conventional factors (personal background, individual labour market characteristics, organisational culture, and so on) and introduce the basic cultural values and beliefs, and then to put this into a comparative perspective for the South-East European (SEE) countries and for Macedonia, in particular. Cultural values have been grouped into traditional vs. secular-rational values and survival vs. self-expression values. The main result from the study is that cultural heritage exerts considerable effect on job satisfaction in SEE with some determinants – like the importance of work, religion and family – exerting stronger influence in SEE than in CEE and in Western Europe. The impact of cultural values on job satisfaction in Macedonia has been found to be only limited. Mainly the traditional cultural values have been found important, while only trust from the ‘survival’ group likely affects job satisfaction and likely with the effect being stronger than in the case of SEE, CEE and Western Europe.
    Keywords: job satisfaction; cultural values
    JEL: M54
    Date: 2011
  16. By: Ribar, David C. (University of North Carolina, Greensboro)
    Abstract: This paper discusses research questions related to immigrants' time use, reviews conceptual and methodological approaches to examining time allocations, and reviews evidence from previous studies. It provides new descriptive evidence, using time-diary data from the American Time Use Survey. Although results vary with the country of origin, immigrant men in the U.S. tend to devote more time to market work and sleeping but less time to housework, community activities, and leisure than native men. Immigrant women tend to devote more time to housework, caregiving and sleep but less time to market work, community activities, and leisure than native women.
    Keywords: time use, immigrants
    JEL: J22 J61
    Date: 2012–10

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