nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2012‒12‒06
fourteen papers chosen by
Erik Jonasson
Lund University

  1. Movin' on Up: Hierarchical Occupational Segmentation and Gender Wage Gaps By Shatnawi, Dina; Oaxaca, Ronald L.; Ransom, Michael R.
  2. Is there monopsonistic discrimination against immigrants? First evidence from linked employer-employee data By Hirsch, Boris; Jahn, Elke J.
  3. Social Networks and Labor Market Inequality between Ethnicities and Races By Ott Toomet; Marco van der Leij; Meredith Rolfe
  4. Selection, Heterogeneity and the Gender Wage Gap By Machado, Cecilia
  5. Estimating the wage premium of collective wage contracts: Evidence from longitudinal linked employer-employee data By Guertzgen, Nicole
  6. Mobility, wages and gender across Europe By Contreras, Dulce/D; Sánchez, Rosario/R; Soria, Delfina/D
  7. Declining returns to skill and the distribution of wages : Spain 1995-2006 By Raquel Carrasco; Juan F. Jimeno; A. Carolina Ortega
  8. The Intergenerational Transmission of Occupational Preferences, Segregation, and Wage Inequality: Empirical Evidence from Three Countries By Veronika V. Eberharter
  9. Self-employed individuals, time use, and earnings By Konietzko, Thorsten
  10. Culture, Intermarriage, and Immigrant Women's - Labor Supply By Z. Eylem Gevrek; Deniz Gevrek; Sonam Gupta
  11. Workplace heterogeneity and the rise of West German wage inequality By Card, David; Heining, Jörg; Kline, Patrick
  12. Spouses' Retirement and Hours of Work Outcomes : Evidence from Twofold Regression Discontinuity. By Elena Stancanelli
  13. Labor Supply Heterogeneity and Demand for Child Care of Mothers with Young Children By Apps, Patricia; Kabatek, Jan; Rees, Ray; van Soest, Arthur
  14. How relevant is job mismatch for German graduates? By Berlingieri, Francesco; Erdsiek, Daniel

  1. By: Shatnawi, Dina (Naval Postgraduate School); Oaxaca, Ronald L. (University of Arizona); Ransom, Michael R. (Brigham Young University)
    Abstract: Our study evaluates and extends existing wage decomposition methodologies that seek to measure the contributions of endowments, pure wage discrimination, and job segregation. Of particular interest is the model of hierarchical segregation in Baldwin, Butler, and Johnson (2001). We employ data from a regional supermarket that faced a Title VII class-action lawsuit to examine how standard wage specifications integrated with a model of hierarchical segregation might perform in wage decompositions. Our results show that a common misspecification of the wage structure leads to false inferences about the presence of pure wage discrimination. We demonstrate the generalizability of our methodology using CPS data.
    Keywords: gender discrimination, job segregation, wage decompositions
    JEL: J71
    Date: 2012–11
  2. By: Hirsch, Boris; Jahn, Elke J.
    Abstract: This paper investigates immigrants' and natives' labour supply to the firm within a semi-structural approach based on a dynamic monopsony framework. Applying duration models to a large administrative employer-employee data set for Germany, we find that once accounting for unobserved worker heterogeneity immi-grants supply labour less elastically to firms than natives. Under monopsonistic wage setting the estimated elasticity differential predicts a 4.7 log points wage penalty for immigrants thereby accounting for almost the entire unexplained native-immigrant wage differential of 2.9-5.9 log points. Our results imply that employers profit from discriminating against immigrants. -- Mithilfe eines semistrukturellen Schätzansatzes, der auf ei-nem dynamischen Monopsonmodell beruht, untersuchen wir das Arbeitsangebot von Immigranten und Einheimischen auf Firmenebene. Unter Verwendung von Verweil-dauermodellen und eines großen administrativen Firmen-Beschäftigten-Datensatzes für Deutschland finden wir, dass Immigranten eine geringere Arbeitsangebotselasti-zität auf Firmenebene aufweisen als Einheimische, sofern für unbeobachtete Personenheterogenität kontrolliert wird. Wird monopsonistische Lohnsetzung unter-stellt, so folgt aus den gefundenen Elastizitätsunterschieden ein Lohnabschlag für Immigranten von 4.7 Logpunkten. Dies entspricht nahezu dem gesamten unerklärten Lohndifferential zwischen Immigranten und Einheimischen in Höhe von 2.9-5.9 Log-punkten. Unsere Ergebnisse implizieren, dass Arbeitgeber von Lohndiskriminierung gegen Immigranten profitieren.
    Keywords: monopsony,native-immigrant wage differential,discrimination,Germany
    JEL: J42 J61 J71
    Date: 2012
  3. By: Ott Toomet (Tartu University); Marco van der Leij (University of Amsterdam); Meredith Rolfe (London School of Economics)
    Abstract: This paper analyzes the relationship between unexplained racial/ethnic wage differentials on the one hand and social network segregation, as measured by inbreeding homophily, on the other hand. Our analysis is based on both U.S. and Estonian surveys, supplemented with Estonian telephone communication data. In case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the U.S. case we consider the regional variation in black-white differentials. Our analysis finds a strong relationship between the size of the differential and network segregation: regions with more segregated social networks exhibit larger unexplained wage gaps.
    Keywords: social networks; wage differential; homophily; segregation; race; minorities
    JEL: J71 J31 Z13
    Date: 2012–11–13
  4. By: Machado, Cecilia (Fundação Getúlio Vargas)
    Abstract: Selection correction methods usually make assumptions about selection itself. In the case of gender wage gap estimation, those assumptions are specially tenuous because of high female non-participation and because selection could be different in different parts of the labor market. This paper proposes an estimator for the wage gap that allows for arbitrary heterogeneity in selection. It applies to the subpopulation of "always employed" women, which is similar to men in labor force attachment. Using CPS data from 1976 to 2005, I show that the gap has narrowed substantially from a -.521 to a -.263 log wage points differential for this population.
    Keywords: selection, gender wage gap
    JEL: J31 J16 J24
    Date: 2012–11
  5. By: Guertzgen, Nicole
    Abstract: Using a large-scale linked-employer-employee data set from western Germany, this paper presents new evidence on the wage premium of collective bargaining contracts. In contrast to previous studies, we seek to assess the extent to which differences in wages between workers in covered and uncovered firms arise from the non-random selection of workers and firms into collective bargaining coverage. By measuring the relative wage changes of workers employed in firms that change contract status, we obtain estimates that depart considerably from previous results relying on cross-sectional data. Results from analysing separate transitions show that leaving industry-level contracts is associated with subsequent wage losses. However, the results from a trendadjusted difference-in-difference approach indicate that the particularly the transitions to no-coverage appear to be associated with negative shocks. Overall, our findings provide no evidence of a 'true' wage effect of leaving wage bargaining, once differences in pre-transition wage growth are accounted for. --
    Keywords: Union Wage Premium,Collective Bargaining Coverage
    JEL: J31 J51
    Date: 2012
  6. By: Contreras, Dulce/D; Sánchez, Rosario/R; Soria, Delfina/D
    Abstract: In this paper, the socioeconomic and individual characteristics that favor mobility are analyzed. The stochastic frontier technique is used as an instrument of analysis to measure the differences that arise between the potential wage and the one that should be obtained for an individual with particular socioeconomic characteristics given his/her investment in human capital. A data panel of young workers who have been working at least for seven consecutive years is used for this analysis. The data set comes from the European Community Household Panel for the period 1995-2001. The results show that Spanish and Italian women have the higher changing probability; this high probability has a negative effect on the potential wage because it increases the gap between the potential and the observed wage.
    Keywords: Wage differentials; mobility; Europe; labor economic
    JEL: J31 J71
    Date: 2012–12–02
  7. By: Raquel Carrasco; Juan F. Jimeno; A. Carolina Ortega
    Abstract: In contrast to the pattern observed in other developed countries, Spanish wage inequality did not increase during the period from 1995-2006. In this paper we analyse the relative role of supply and demand factors when accounting for this “atypical” fact. Because noticeable changes in both labour supply and labour demand - such as educational upgrading of the labour force, huge immigration flows, and a boom in the construction sector - took place during these years, we start by decomposing observed wage changes into changes in the composition of the labour force and changes in the prices of workers’ and jobs’ characteristics. The results indicate that the compression of the wage distribution is largely explained by a decrease in the returns to education. We also provide some evidence of the relative impact of labour supply and labour demand factors on the changes of these returns, showing that both the increase in the supply of high-skilled workers and the increasing weight of low-skilled occupations are related to the decreasing trend in the skill premium over this period.
    Keywords: Wage structure, Quantile regressions, Composition effects, Polarization
    JEL: J31 J21
    Date: 2012–11
  8. By: Veronika V. Eberharter
    Abstract: Based on longitudinal data (CNEF 1980-2010) the paper analyzes the structuring effects of individual and family background characteristics on occupational preferences, and the influence of occupational segregation on gender wage differentials in Germany, Great Britain, and the United States. Notwithstanding the country differences concerning welfare state regimes, institutional settings of the labor markets, and family role patterns, the results confirm the hypotheses of the intergenerational transmission of occupational status, and occupational segregation. The decomposition analysis shows that gender wage differentials are mainly determined by structural differences in the occupational distribution.
    Keywords: occupational segregation, occupational choice, intergenerational occupational mobility, wage differentials
    JEL: J24 J31 J62
    Date: 2012
  9. By: Konietzko, Thorsten
    Abstract: This paper analyzes the time allocation of self-employed men and women compared to men and women in paid employment and the impact of house-work on earnings of self-employed individuals using data from two German datasets. Self-employed women spend more time on housework activities and self-employed men spend more time on market work than their paid counterparts. While descriptive statistics and pooled OLS earnings regressions show a negative impact of time spent on housework on earnings, fixed-effects earnings regressions show only a negative impact on monthly earnings of self-employed men. This impact disappears after controlling for potential endogeneity via instrumental variable estimators. -- Auf Grundlage zweier deutscher Datensätze untersucht diese Studie die Zeitallokation von selbständigen Frauen und Männern im Vergleich zu abhängig beschäftigten Frauen und Männern sowie den Einfluss der Hausarbeits-zeit auf die Verdienste der Selbständigen. Im Gegensatz zu abhängig Beschäftigten verwenden selbständige Frauen mehr Zeit für Hausarbeit, während selbständige Männer mehr Zeit für Marktarbeit aufwenden. Sowohl die deskriptiven Analysen als auch gepoolte OLS Einkommensregressionen zeigen einen negativen Einfluss der Hausarbeitszeit auf die Einkommen der Selbständigen auf. Im Gegensatz dazu wird in den Fixed-Effekts-Einkommensschätzungen nur beim Monatslohn selbständiger Männer ein negativer Zusammenhang gefunden. Dieser Effekt verschwindet nach einer Kontrolle auf potentielle Endogenität mittels Instrumentenvariablen.
    Keywords: self-employment,time use,earnings,gender pay gap,Germany
    JEL: J16 J31 J22
    Date: 2012
  10. By: Z. Eylem Gevrek (Department of Economics, University of Konstanz, Germany); Deniz Gevrek (Texas A&M University, Corpus Christi, Texas); Sonam Gupta (Food and Resource Economics Department, University of Florida, Gainesville, USA)
    Abstract: We examine the impact of culture on the work behavior of second-generation immigrant women in Canada. We contribute to the current literature by analyzing the role of intermarriage in intergenerational transmission of culture and its subsequent effect on labor market outcomes. Using relative female labor force participation and total fertility rates in the country of ancestry as cultural proxies, we find that culture matters for the female labor supply. Cultural proxies are significant in explaining number of hours worked by second-generation women with immigrant parents. Our results provide evidence that the impact of cultural proxies is significantly larger for women with immigrant parents who share same ethnic background than for those with intermarried parents. The fact that the effect of culture is weaker for women who were raised in intermarried families stresses the importance of intermarriage in assimilation process. Our findings imply that government policies targeting labor supply of women may have differential effect on labor market behavior of immigrant women of different ancestries.
    Keywords: culture, immigrant women, intermarriage, labor supply, immigrant assimilation
    JEL: J12 J15 J22 J61
    Date: 2012–11–21
  11. By: Card, David; Heining, Jörg (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Kline, Patrick
    Abstract: "We study the role of establishment-specific wage premiums in generating recent increases in West German wage inequality. Models with additive fixed effects for workers and establishments are fit in four distinct time intervals spanning the period 1985-2009. Unlike standard wage models, specifications with both worker and plant-level heterogeneity components can explain the vast majority of the rise in wage inequality. Our estimates suggest that the increasing variability of West German wages results from a combination of rising heterogeneity between workers, rising variability in the wage premiums at different establishments, and increasing assortativeness in the matching of workers to plants. We use the models to decompose changes in wage gaps between different education levels, occupations, and industries, and in all three cases find a growing contribution of plant heterogeneity and rising assortativeness between workers and establishments." (Author's abstract, IAB-Doku) ((en))
    Keywords: Lohnunterschied - Ursache, Betrieb, Lohnstruktur, Lohnhöhe, Lohnzulage, Lohnentwicklung, Beschäftigtenstruktur, Heterogenität, matching - Qualität, Lohnfindung, Integrierte Erwerbsbiografien, erwerbstätige Männer, Lohnunterschied - Entwicklung, Lohndifferenzierung, Qualifikationsniveau, Berufsgruppe, Wirtschaftszweige, Tarifbindung, Gewinnbeteiligung, Westdeutschland
    JEL: J01 J3 J4
    Date: 2012–11–13
  12. By: Elena Stancanelli (Centre d'Economie de la Sorbonne, OFCE SciencesPo and IZA)
    Abstract: Earlier studies conclude that spouses time their retirement closely together. Here, we exploit early retirement age legislation to identify the effect of own and spousal retirement on spouses' hours of work. The sample for the analysis includes over 85000 French couples. We conclude that hours of work fall significantly upon own and partner's retirement, for both spouses. The own effect is dramatically large and equal to a drop in hours worked of 65 to 77 per cent while the cross effects are small, suggesting an average reduction of one or two hours per week upon spousal retirement.
    Keywords: Ageing, retirement, regression discontinuity, policy evaluation.
    JEL: J14 C1 C36 D04
    Date: 2012–11
  13. By: Apps, Patricia (University of Sydney); Kabatek, Jan (Tilburg University); Rees, Ray (University of Munich); van Soest, Arthur (Tilburg University)
    Abstract: This paper introduces a static structural model of hours of market labor supply, time spent on child care and other domestic work, and bought in child care for married or cohabiting mothers with pre-school age children. The father's behavior is taken as given. The main goal is to analyze the sensitivity of hours of market work, parental child care, other household production and formal child care to the wage rate, the price of child care, taxes, benefits and child care subsidies. To account for the non-convex nature of the budget sets and, possibly, the household technology, a discrete choice model is used. The model is estimated using the HILDA dataset, a rich household survey of the Australian population, which contains detailed information on time use, child care demands and the corresponding prices. Simulations based on the estimates show that the time allocations of women with pre-school children are highly sensitive to changes in wages and the costs of child care. A policy simulation suggests that labor force participation and hours of market work would increase substantially in a fiscal system based solely on individual rather than joint taxation.
    Keywords: time use, income tax, child care subsidies
    JEL: J22 J13 H24
    Date: 2012–11
  14. By: Berlingieri, Francesco; Erdsiek, Daniel
    Abstract: In this study, we examine the incidence and direct consequences of job mismatch for German graduates. Beyond measuring job mismatch by the comparison of qualification obtained by employees and required for a job, we employ self-reported skill mismatch variables concerning overall skills and more detailed information about the surplus or deficit in specific competences. The results indicate that a substantial share of graduates underutilizes own skills in the job. The rate of overqualification and skill mismatch is found to differ strongly between fields of study, type of university and gender. In addition, we investigate to what extent jobs of matched graduates differ from jobs held by mismatched graduates. Jobs of the latter are found to exhibit lower complexity and creativity requirements but to be more monotone than matching jobs. Furthermore, we provide a conceptual underpinning of the possible explanations of job-worker mismatch and its implication for different actors in the economy. --
    Keywords: job mismatch,overqualification,skill mismatch
    JEL: J24 I2
    Date: 2012

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