nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2013‒08‒10
twelve papers chosen by
Erik Jonasson
National Institute of Economic Research

  1. Robust Estimation of Wage Dispersion with Censored Data: An Application to Occupational Earnings Risk and Risk Attitudes By Daniel Pollmann; Thomas Dohmen; Franz Palm
  2. Public-private sector wage differentials in Spain. An updated picture in the midst of the Great Recession. By Antón, José-Ignacio; Muñoz de Bustillo, Rafael
  3. What do wages add to the health-employment nexus? Evidence from older European workers By Manuel Flores; Adriaan Kalwij
  4. Causal Effects of Educational Mismatch in the Labor Market By Jan Kleibrink
  5. Estimating Gender Differences in Access to Jobs By Laurent Gobillon; Dominique Meurs; Sébastien Roux
  6. Job Satisfaction of Older Workers as a Factor of Promoting Labour Market Participation in the EU: The Case of Slovenia By Aristovnik, Aleksander; Jaklič, Ksenja
  7. Careers of Doctorate Holders: Analysis of Labour Market and Mobility Indicators By Laudeline Auriol; Max Misu; Rebecca Ann Freeman
  8. From occupations to embedded skills : a cross-country comparison By Aedo, Cristian; Hentschel, Jesko; Luque, Javier; Moreno, Martin
  9. Effects of Colombia's social protection system on workers'choice between formal and informal employment By Camacho, Adriana; Conover, Emily; Hoyos, Alejandro
  10. Mineral Mining and Female Employment By Andreas Kotsadam; Anja Tolonen
  11. Young FSU Migrants in Germany: Educational Attainment and Early Labor Market Outcomes By Regina Flake
  12. Labour Market Information for Employers and Economic Immigrants in Canada: A Country Study By Vikram Rai

  1. By: Daniel Pollmann; Thomas Dohmen; Franz Palm
    Abstract: We present a semiparametric method to estimate group-level dispersion, which is particularly effective in the presence of censored data. We apply this procedure to obtain measures of occupation-specific wage dispersion using top-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated with the wage dispersion of an individual’s occupation.
    Keywords: dispersion estimation, earnings risk, censoring, quantile regression, occupational choice, sorting, risk preferences, SOEP, IABS
    JEL: C14 C21 C24 J24 J31 D01 D81
    Date: 2013
  2. By: Antón, José-Ignacio; Muñoz de Bustillo, Rafael
    Abstract: Using the recent Wage Structure Survey 2010, this article examines the public-private sector wage gaps in Spain across the whole earnings distribution and the incidence of the gender gap in both sectors of the economy. Firstly, we find that that there is positive wage premium to public sector employment which is not fully explained by employees’ observable characteristics. Furthermore, this premium concentrates on low-skilled workers, while high-skilled individuals in the public sector suffer a pay penalty. Secondly, the gender gap is substantially larger in the private sector. Lastly, we analyse what happens in some specific activities, Education and Human health and social work, where both public and private sector coexist to a large extent. We discuss several explanations for these findings, coherent with international evidence, and the possible implications of the current process of downsizing of public sector employment associated to austerity measures.
    Keywords: wage gap; public sector; gender gap; quantile regression
    JEL: C21 J16 J31 J45
    Date: 2013–08–06
  3. By: Manuel Flores (University of Santiago de Compostela, IDEGA); Adriaan Kalwij (Utrech University School of Economics)
    Abstract: This paper adds to the empirical literature on health as an important determinant of employment at older ages by exploring the role in the health-employment nexus of the wage rates of 50 to 64-year-old workers. To do so, we use individual-level panel data from the Survey of Health, Ageing and Retirement in Europe to estimate a system of equations for health, wages and employment. Our model also takes into account both the potential for measurement error in the health variable and selectivity issues related to the wage equation. We find that for men (women) a one-unit (one standard deviation) increase in health yields, on average, a 7 (8) percentage higher hourly wage rate, resulting in a 2 (4) percentage point higher employment probability. We also show a direct impact of health on employment: a similar increase in health raises the employment probability of men (women) by 16 (13) percentage points. As regards differences between European countries, our findings suggest that for all country groups, the mediating role of wages in the health-employment nexus is relatively small while the direct impact of health on employment is relatively large and rather similar. Overall, our findings indicate only a minor role for disability income policies likes wage subsidies to encourage the employment of (older) workers with health limitations, but an instrumental role for policy aimed at helping employers accommodate these workers on the job and keep them employed at older ages.
    Keywords: Health, wages, employment
    JEL: D00 I10 J14 J20 J30
    Date: 2013–07
  4. By: Jan Kleibrink
    Abstract: This paper analyzes the effect of educational mismatch on wages in Germany, using data from the German Socio-Economic Panel. Educational mismatch has been discussed extensively, mostly by applying OLS wage regressions which are prone to an unobserved heterogeneity bias. This problem is approached by using FE and IV models. As a stability check, the regressions are rerun using data from the International Adult Literacy Survey, allowing for an explicit control of skills as proxy of abilities. Results show that unobserved heterogeneity does not explain the wage diff erences between actual years of education and years of required education. This rejects the hypothesis that mismatched workers compensate for heterogeneity in innate abilities. The results suggest a structural problem in the German educational system as skill demand and supply are not in long-term equilibrium.
    Keywords: Wages, educational mismatch
    JEL: I14 I21 J31
    Date: 2013
  5. By: Laurent Gobillon (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, INED - Institut National d'Etudes Démographiques Paris - INED, CEPR - Center for Economic Policy Research - CEPR, IZA - Institute for the Study of Labor - IZA); Dominique Meurs (INED - Institut National d'Etudes Démographiques Paris - INED, EconomiX - CNRS : UMR7166 - Université Paris X - Paris Ouest Nanterre La Défense); Sébastien Roux (CREST - Centre de Recherche en Économie et Statistique - INSEE - École Nationale de la Statistique et de l'Administration Économique, DARES - Direction de l'animation de la recherche, des études et des statistiques - Ministère du Travail, de l'Emploi et de la Santé)
    Abstract: This paper proposes a new measure of gender di¤erences 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 di¤erence in the probability of getting a job increases along the wage ladder from 9% to 50%. Females thus have a signi.cantly lower access to high-paid jobs than to low-paid jobs.
    Keywords: Gender ; Discrimination ; Wages ; Quantiles ; Job assignment model ; Glass ceiling
    Date: 2013–07
  6. By: Aristovnik, Aleksander; Jaklič, Ksenja
    Abstract: This paper deals with the study of older workers’ job satisfaction as a factor that, combined with other personal and job-related factors, can significantly influence the decision to postpone retirement when this decision is in the hands of an individual. Starting from the fact that the employment rate of older workers in Slovenia in 2011 was the lowest in the EU, the article aims to establish the level of older workers’ job satisfaction in Slovenia compared to the EU, analyse its dimensions, its specifics related to age, gender, sector of economic activities and type of profession, as well as ascertain what determines it the most. A statistical analysis of the results of the Fifth European Working Conditions Survey of 2010 reveals that Slovenia ranks 15th among the EU member states in terms of older workers’ job satisfaction, thus lagging behind the EU average. While Slovenian older workers, the same as their European counterparts, are most satisfied with doing useful work and the least with their prospects for career advancement, a comparison with other EU member states shows that they are relatively dissatisfied with working conditions, salary and adequacy of the motivation to give one’s best performance, and relatively satisfied with doing useful work and with their colleagues. The analysis also shows that the level of older workers’ job satisfaction in Slovenia is determined most by their satisfaction with the adequacy of the motivation to give one’s best performance.
    Keywords: older workers, job satisfaction, employment, labour market participation, EU, Slovenia
    JEL: J14 J20 J26 J28
    Date: 2013–08–02
  7. By: Laudeline Auriol; Max Misu; Rebecca Ann Freeman
    Abstract: This paper presents an analysis of the labour market and mobility indicators generated by the second large-scale data collection on Careers of Doctorate Holders, a joint project by the OECD, UNESCO Institute for Statistics and Eurostat.<P> There has been a steady increase in the number of doctoral degrees being awarded across the OECD and the evidence points to a sustained labour market premium of doctorate holders relative to other highly qualified individuals in 2009, prior to the potential impact of the economic crisis. Women and younger doctoral graduates, however, fare relatively worse in terms of employment rates, but these results are less marked than for lower degree holders. While temporary positions are increasingly common in academics, coinciding with the rise of postdoctoral positions, they are less so in business. Natural scientists and engineers are those who are more likely to be engaged in research, while social scientists find more opportunities in non-research occupations. Doctorate holders in the medical and health sciences are generally better paid. Earnings are also typically higher in the business sector than in other sectors, but there are exceptions. Job mobility patterns differ markedly across countries, with mobility being more frequent among doctorates not working in research. Oftentimes mobility from the business sector to the higher education sector is higher than the other way around. International mobility, as well as migration of doctoral graduates, have kept increasing over the decade.
    Date: 2013–06–28
  8. By: Aedo, Cristian; Hentschel, Jesko; Luque, Javier; Moreno, Martin
    Abstract: This paper derives the skill content of 30 countries, ranging from low-income to high-income ones, from the occupational structure of their economies. Five different skills are defined.. Cross-country measures of skill content show that the intensity of national production of manual skills declines with per capita income in a monotonic way, while it increases for non-routine cognitive and interpersonal skills. For some countries, the analysis is able to trace the development of skill intensities of aggregate production over time. The paper finds that although the increasing intensity of non-routine skills is uniform across countries, patterns of skill intensities with respect to different forms of routine skills differ markedly.
    Keywords: Labor Markets,Labor Policies,Knowledge for Development,ICT Policy and Strategies,Rural Development Knowledge&Information Systems
    Date: 2013–08–01
  9. By: Camacho, Adriana; Conover, Emily; Hoyos, Alejandro
    Abstract: This paper examines whether the Colombian government's expansion of social programs in the early 1990s, particularly the publicly provided health insurance, discouraged formal employment. Using household survey data and variation across municipalities in the onset of interviews for the SISBEN, the instrument used to identify beneficiaries for public health insurance, it shows robust and consistent estimates of an increase in informal employment of approximately 4 percentage points. Similar results are obtained using an alternative dataset, consisting of a panel of individuals interviewed for the first and second SISBEN. The findings suggest that marginal individuals optimized when deciding whether to participate in the formal sector.
    Keywords: Health Monitoring&Evaluation,Labor Markets,Health Systems Development&Reform,Labor Policies,Population Policies
    Date: 2013–08–01
  10. By: Andreas Kotsadam; Anja Tolonen
    Abstract: We use the rapid expansion of the number of mineral mines in Sub-Saharan Africa to explore changes in local labor markets. Matching over two decades of panel data on industrial mines to survey data for half a million women and exploiting the spatial and temporal variation in the data in a difference-in-difference strategy, we find that opening of an industrial mine induces a structural shift whereby women switch from working in agriculture to services. We also find that the probability to earn cash income increases and women become less likely to work seasonally once a mine opens nearby. The results illustrate that mineral mining creates non-agricultural employment opportunities for women despite their absence frm the mining workforce. T|he spillover effects wear off with distance from mine and the effects on service employment are reversed when a mine closes.
    Keywords: Mineral mining, female employment, Sub-Saharan Africa, local labor markets, women
    JEL: J16 J21 O13 O18
    Date: 2013
  11. By: Regina Flake
    Abstract: This study analyzes the educational attainment and early labor market outcomes of young migrants from the Former Soviet Union (FSU) who arrived in Germany between 1989 and 1994. The results reveal that migrants have lower educational attainments than natives, and that within the group of migrants, Jewish migrants perform better than ethnic German migrants. A decomposition analysis reveals that this competitive edge can, for the most part, be explained by a higher socioeconomic background. In the labor market, migrants cannot compensate for their educational disadvantage and have poorer labor market outcomes than natives. The results of this study stress the importance of an early educational integration of migrants for a successful labor market integration in the long run.
    Keywords: International migration; education; wages; unemployment; intergenerational mobility; integration
    JEL: F22 I20 J30 J60
    Date: 2013–07
  12. By: Vikram Rai
    Abstract: This report draws lessons from the Canadian immigration experience that can contribute to improving the labour market outcomes of immigrants and alleviate barriers related to labour market information issues. Foreign-born workers often lack the necessary information to learn about opportunities in the Canadian labour market, which can prevent highly-skilled workers from finding employment in their field, to the detriment of the Canadian economy. We examine the services provided to immigrants in Canada by federal and provincial governments, and the large role played by the non-profit sector in facilitating the delivery of information and services to immigrants in order to lessen the informational barriers to immigrant employment. We further identify best practices from Canada, which include establishing national standards for the recognition of foreign qualification; simplifying the delivery of services by using one-stop shops or single-points-of-contact; involving local stakeholders in the development of policy and delivery of service; and maintaining a flexible immigration policy. Identifying and addressing the specific needs of newcomers to Canada has had a strong positive impact on their labour market outcomes.
    Date: 2013–05

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