nep-lma New Economics Papers
on All new papers
Issue of 2014‒09‒08
six papers chosen by
Joseph Marchand
University of Alberta

  1. The Effects of Paid Family Leave in California on Labor Market Outcomes By Baum, Charles L.; Ruhm, Christopher J.
  2. Labour market effects of retraining for the unemployed : the role of occupations By Kruppe, Thomas; Lang, Julia
  3. The 2009 recovery act: stimulus at the extensive and intensive labor margins By Dupor, William D.; Mehkari, M. Saif
  4. The Effect of Rehabilitative Punishments on Juvenile Crime and Labor Market Outcomes By Huttunen, Kristiina; Kerr, Sari Pekkala; Mälkönen, Ville
  5. Effects of the timing of births on women's earnings - evidence from a natural experiment By Karimi, Arizo
  6. Job search behavior over the business cycle By Mukoyama, Toshihiko; Patterson, Christina; Sahin, Aysegul

  1. By: Baum, Charles L. (Middle Tennessee State University); Ruhm, Christopher J. (University of Virginia)
    Abstract: Using data from the 1997 cohort of the National Longitudinal Survey of Youth (NLSY-97), we examine the effects of California's paid family leave program (CA-PFL) on mothers' and fathers' use of leave during the period surrounding child birth, and on the timing of mothers' return to work, the probability of eventually returning to pre-childbirth jobs, and subsequent labor market outcomes. Our results show that CA-PFL raised leave-taking by around three weeks for the average mother and approximately one week for the average father. The timing of the increased leave use – immediately after birth for men and around the time that temporary disability insurance benefits are exhausted for women – is consistent with causal effects of CA-PFL. Rights to paid leave are also associated with higher work and employment probabilities for mothers nine to twelve months after birth, possibly because they increase job continuity among those with relatively weak labor force attachments. We also find positive effects of California's program on hours and weeks of work during their child's second year of life and possibly also on wages.
    Keywords: parental leave, paid leave, family leave, employment, wages, leave-taking, return-to-work decisions
    JEL: J1 J2 J3 J13 J18
    Date: 2014–08
  2. By: Kruppe, Thomas (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Lang, Julia (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "We analyse the impact of retraining for the unemployed on future labour market success, and estimate effects separately for different target occupations. We use German registry data and apply statistical matching methods. The results show that on average, after a period with strong lock-in effects, retraining increases the employment probability of women by more than 20 percentage points. Effects for male participants are somewhat weaker. Although we find differences in the effectiveness of retraining by target occupations, these differences cannot completely explain the observed gender differences. Healthcare occupations, which are the most important target occupations especially of female participants, are among those with the strongest effects. Despite differences between occupational fields, retraining in most of the considered occupations positively affects employment prospects of participants. Finally, sorting into different occupations seems to be present, as participants with different target professions also differ in their observable characteristics." (Author's abstract, IAB-Doku) ((en))
    Keywords: Umschulung, Arbeitslose, Zielberuf, Arbeitsmarktchancen, arbeitslose Frauen, arbeitslose Männer, Integrierte Erwerbsbiografien, arbeitsmarktpolitische Maßnahme, Wirkungsforschung
    JEL: J24 J68 C14
    Date: 2014–08–25
  3. By: Dupor, William D. (Federal Reserve Bank of St. Louis); Mehkari, M. Saif (University of Richmond)
    Abstract: This paper (i) estimates the local effects of government stimulus spending on labor market outcomes and (ii) shows how these effects can be obtained from a firm's optimal policy in the presence of costs to hiring workers. We analyze the American Recovery and Reinvestment Act of 2009 (Recovery Act) using instrumental variables at the county-level. We find that $1 million of government spending increased employment locally by 5.5 persons and also increased wage payments to existing workers by $178,000. Next, we build a model in which a firm meets new government demand with a combination of new hiring and increasing the number of hours for existing workers. Faced with hiring costs and an overtime premium, the firm responds by increasing hours along both margins. Our analysis also provides insight into how government spending policy should be structured to lower the cost of generating new jobs. Finally, we catalog survey evidence from Recovery Act fund recipients that reinforces the importance of the intensive labor margin.
    Keywords: fiscal policy; intensive and extensive labor margins; the 2009 Recovery Act.
    JEL: D21 D24 E52 E62
    Date: 2014–08–11
  4. By: Huttunen, Kristiina (Aalto University); Kerr, Sari Pekkala (Wellesley College); Mälkönen, Ville (Nordic Investment Bank)
    Abstract: This paper estimates the effect of a rehabilitative punishment on the post-release outcomes of juvenile criminals using a unique Finnish data set on sentences and punishments merged with the longitudinal population census for 1990-2007. The rehabilitative program was aimed at improving the social skills and labor market attachment of young offenders aged 15 to 17. A variety of research designs are used to isolate the effect of the juvenile punishment and to control for observable characteristics of the young offenders. The juvenile punishment experiment was initially conducted in certain criminal courts only and was applicable for youths aged under 18, giving rise to a differences-in-differences and triple differences setup. The juvenile punishment reduced reoffending during the year immediately after sentencing, but had no long-term effect on reoffending nor on labor market outcomes.
    Keywords: juvenile crime, punishments, rehabilitation, recidivism, earnings, employment
    JEL: K14 K42 J29
    Date: 2014–08
  5. By: Karimi, Arizo (IFAU - Institute for Evaluation of Labour Market and Education Policy)
    Abstract: This paper studies the causal effect of the timing of first birth on highly educated women’s career outcomes using exogenous variation in first birth timing induced by the occurrence of pregnancy loss before first birth. Contrasting previous findings, my results suggest that a one-year delay has a significantly negative effect on both income and wages. The negative effects might partly be explained by child spacing; motherhood delay induces women to have the second child more closely spaced (but not fewer or more Children altogether), and consequently to have a potentially longer consecutive parental leave, or more frequent transitions in and out of the labor market. The same findings hold true when I employ an individual-fixed effects estimator based on panel data, from which the results suggest a larger slope decline in the wage profile post birth for “late” mothers. The hypothesis that short birth intervals may be detrimental for career outcomes is then tested by analyzing the impact of spacing births, using miscarriages between the first and second births as an instrument for birth spacing. The results suggest that a longer birth spacing indeed has positive long-run effects on income and wage rates.
    Keywords: First-birth timing; child spacing; female wages; lifetime earnings
    JEL: J13 J31
    Date: 2014–08–05
  6. By: Mukoyama, Toshihiko; Patterson, Christina; Sahin, Aysegul (Federal Reserve Bank of New York)
    Abstract: We create a novel measure of job search effort starting in 1994 by exploiting the overlap between the Current Population Survey and the American Time Use Survey. We examine the cyclical behavior of aggregate job search effort using time series and cross-state variation and find that it is countercyclical. About half of the countercyclical movement is explained by a cyclical shift in the observable characteristics of the unemployed. Individual responses to labor market conditions and drops in wealth are important in explaining the remaining variation.
    Keywords: job search; time; use; business cycles
    JEL: E24 E32 J22 J64
    Date: 2014–08–01

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