nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2014‒01‒10
seven papers chosen by
Joseph Marchand
University of Alberta

  1. Skill premia and intergenerational education mobility: The French case By B. Ben-Halima; Nathalie Chusseau; Joel Hellier
  2. Interacting Product and Labor Market Regulation and the Impact of Immigration on Native Wages By Susanne Prantl; Alexandra Spitz-Oener
  3. Sabotage vs Discouragement: Which Dominates Post Promotion Tournament Behavior? By David Johnson; Timothy Salmon
  4. Connect: Children with School and Workers with Wages in Bagladesh By PAUNIĆ, ALIDA
  5. Great expectations, but how to achieve them? Explaining patterns of inequality in childcare use across 31 developed countries By Wim Van Lancker; Joris Ghysels
  6. Human Trafficking and Regulating Prostitution By Lee, Samuel; Persson, Petra
  7. A Note on Variance Estimation for the Oaxaca Estimator of Average Treatment Effects By Patrick M. Kline

  1. By: B. Ben-Halima (EQUIPPE, University of Lille 1, France); Nathalie Chusseau (EQUIPPE, University of Lille 1, France); Joel Hellier (EQUIPPE, University of Lille 1 and LEMNA, IEMN-IAE, France)
    Abstract: In the case of France, we analyse the changes in the wage value of each education level and the impact of parents' education and income upon the education attainment of children, sons and daughters. We find a critical decline in the skill premium of the Baccalaureat (`bac') in relation to the lowest educational level, and an increase in the skill premia of higher education degrees in relation to the bac, which is however not large enough to erase the decrease in all the skill premia relative to the lowest education. We also find a significant rise in the impact of family backgrounds upon education from 1993 to 2003, i.e. a decrease in intergenerational education mobility, which primarily derives from higher impact of parental incomes. Finally, the gender wage gap is particularly large for the lowest and the highest education degrees, and ntergenerational persistence is greater for sons than for daughters.
    Keywords: Family backgrounds, intergenerational education mobility, skill premium.
    JEL: I2 J24 J31
    Date: 2013–11
  2. By: Susanne Prantl (University of Cologne, Max Planck Institute for Research on Collective Goods, Bonn, and Institute for Fiscal Studies, London); Alexandra Spitz-Oener (Humboldt-University Berlin, IAB, CASE and IZA)
    Abstract: Does interacting product and labor market regulation alter the impact of immigration on wages of competing native workers? Focusing on the large, sudden and unanticipated wave of migration from East to West Germany after German reunification and allowing for endogenous immigration, we compare native wage reactions across different segments of the West German labor market: one segment without product and labor market regulation, to which standard immigration models best apply, one segment in which product and labor market regulation interact, and one segment covering intermediate groups of workers. We find that the wages of competing native West Germans respond negatively to the large influx of similar East German workers in the segment with almost free firm entry into product markets and weak worker influence on the decision-making of firms. Competing native workers are insulated from such pressure if firm entry regulation interacts with labor market institutions, implying a strong influence of workers on the decision-making of profit-making firms.
    Keywords: Immigration, Product Market Regulation, Labor Market Regulation
    JEL: L50 J61 J3
    Date: 2013–12
  3. By: David Johnson (University of Calgary); Timothy Salmon
    Abstract: We explore the behavior of losers of promotional tournaments after the tournament is concluded. We do so through the use of an experiment in which we vary the design of the promotion tournament to determine how tournament design affects effort. We provide a theoretical model demonstrating two possible effects from the tournaments which are strategic sabotage and the possibility that a worker becomes discouraged by the tournament outcome. We examine behavior after the tournament and Â…find evidence suggesting that bad tournament design can lead to workers being discouraged. This discouragement expect is strong for low ability workers but not for high ability workers. On the other hand we do Â…find evidence that some high ability workers engage in strategic sabotage but the incidence does not vary with the design of the promotion tournament.
    Keywords: Sabotage, Experiment, Tournament Design
    JEL: C90 C91 D03 J32 J33
    Date: 2013–12–05
    Abstract: Recent attempts of wage rise , problems of security at work place as well as many findings about child labor in Bangladesh were primary cause of writing this paper. But problems have deep roots: from world separation of capital and labor, profit increasing scenarios with labor inputs, human rights to work and get paid to environmental problems connected to increased production in the region. How to induce pay rise to average world level, forbid child labor, induce regional cooperation, are just a few questions that are tried to answer in paper
    Keywords: Wages, Labor,Taxes, Planning,Development
    JEL: J3 O2
    Date: 2014–01–05
  5. By: Wim Van Lancker; Joris Ghysels
    Abstract: Childcare services are increasingly regarded as a major policy lever to mitigate social inequalities. Such services are believed to be effective in reducing poverty and increasing employment rates by allowing both parents to engage in paid employment, as well as to benefit the cognitive and non-cognitive development of young children. This holds in particular for young children from disadvantaged backgrounds, enhancing their future success in education and in the labour market. However, recent studies have shown that the use of formal childcare services is socially stratified, i.e. higher-income families or families with a high-educated mother use childcare services to a much larger extent than lower-income families or families with a low-skilled mother. Due to this social gap in childcare use, government investment in childcare could fail to live up to its inequality-reducing potential or, worse still, may actually exacerbate rather than mitigate social inequalities. Drawing on the comparative social policy literature, this article explores, for the first time, the determinants of inequalities in childcare coverage for a broad set of countries. Our results contribute to a proper understanding of the mechanisms driving inequality in childcare service use, which is crucial to the future of childcare services as an effective policy instrument to mitigate social inequalities in early life.
    Keywords: childcare, comparative, ECEC, Education, inequality, welfare state
    JEL: I24 I3 H53 J13 J24
    Date: 2013–12
  6. By: Lee, Samuel (New York University); Persson, Petra (Research Institute of Industrial Economics (IFN))
    Abstract: We study sex trafficking in a marriage market model of prostitution. When traffickers can coerce women to sell sex, trafficked prostitutes constitute a non-zero share of supply in any unregulated market for sex. We ask if regulation can eradicate trafficking and restore the equilibrium that would arise in an unregulated market without traffickers. While all existing approaches – criminalization of prostitutes (“the traditional model”), licensed prostitution (“the Dutch model”), and criminalization of johns (“the Swedish model”) – fail to accomplish this goal, we show that there exists an alternative regulatory model that does. Political support for regulation hinges on the level of gender income inequality.
    Keywords: Prostitution; Trafficking; Contemporary slavery; Marriage; Illegal goods
    JEL: D10 J16 J47 J49 K14 K23
    Date: 2013–12–13
  7. By: Patrick M. Kline
    Abstract: We derive the limiting distribution of the Oaxaca estimator of average treatment effects studied by Kline (2011). A consistent estimator of the asymptotic variance is proposed that makes use of standard regression routines. It is shown that ignoring uncertainty in group means will tend to lead to an overstatement of the asymptotic standard errors. Monte Carlo experiments examine the finite sample performance of competing approaches to inference.
    JEL: C01 J31 J7
    Date: 2014–01

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