nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2015‒01‒09
eleven papers chosen by
Joseph Marchand
University of Alberta

  1. The Long-Run Effects of Attending an Elite School: Evidence from the UK By Clark, Damon; Del Bono, Emilia
  2. The Relationship between Hours of Domestic Services and Female Earnings: Panel Register Data Evidence from a Reform By Halldén, Karin; Stenberg, Anders
  3. The Effect of Female Leadership on Establishment and Employee Outcomes: Evidence from Linked Employer-Employee Data By Gagliarducci, Stefano; Paserman, M. Daniele
  4. Health Status and the Allocation of Time: Cross-Country Evidence from Europe By Gimenez-Nadal, J. Ignacio; Molina, José Alberto
  5. Intergenerational Mobility of Housework Time in the United Kingdom By Gimenez-Nadal, J. Ignacio; Molina, José Alberto; Zhu, Yu
  6. A new kid in town? Active inclusion in European minimum income schemes By Sarah Marchal; Natascha Van Mechelen
  7. Are Public Sector Jobs Recession-Proof? Were They Ever? By Jason L. Kopelman; Harvey S. Rosen
  8. Immigrants' Wage Growth and Selective Out-Migration By Bijwaard, Govert; Wahba, Jackline
  9. Before-after differences in labor market outcomes for participants in medical rehabilitation in Germany By Sebastian Fischer; Inna Petrunyk; Christian Pfeifer; Anita Wiemer
  10. Women and political change: Evidence from the Egyptian revolution By Nelly EL MALLAKH; Mathilde MAUREL; Biagio SPECIALE
  11. Public-private sector wage differentials by type of contract: evidence from Spain By Raúl Ramos; Esteban Sanromá; Hipólito Simón

  1. By: Clark, Damon (University of California, Irvine); Del Bono, Emilia (ISER, University of Essex)
    Abstract: This paper estimates the impact of elite school attendance on long-run outcomes including completed education, income and fertility. Our data consists of individuals born in the 1950s and educated in a UK district that assigned students to either elite or non-elite secondary schools. Using instrumental variables methods that exploit the school assignment formula, we find that elite school attendance had large impacts on completed education. For women, we find that elite school attendance generated positive effects on labor market outcomes and significant decreases in fertility; for men, we find no elite school impacts on any of these later-life outcomes.
    Keywords: education, school quality, instrumental variables
    JEL: I2 J24 C31 C36
    Date: 2014–11
  2. By: Halldén, Karin (SOFI, Stockholm University); Stenberg, Anders (SOFI, Stockholm University)
    Abstract: In 2007, a tax discount reform in Sweden reduced prices of outsourced domestic services (ODS) by 50 percent. Unlike most previous studies, population register data enable us to directly link a proxy for relaxed time constraints, annual changes in households' tax discounts, to changes in earnings. We find that 60 percent of married women's freed hours are applied to labor market work, which tapers off when ODS corresponds to approximately three weeks of full time work. This is substantially higher than previously reported estimates. A causal interpretation is supported by "placebo tests", and we carefully outline the assumptions required.
    Keywords: household work, outsourcing, female labor supply
    JEL: H2 J13 J22
    Date: 2014–11
  3. By: Gagliarducci, Stefano (University of Rome Tor Vergata); Paserman, M. Daniele (Boston University)
    Abstract: In this paper we use a large linked employer-employee data set on German establishments between 1993 and 2012 to investigate how the gender composition of the top layer of management affects a variety of establishment and worker outcomes. We use two different measures to identify the gender composition of the top layer based on direct survey data: the fraction of women among top managers, and the fraction of women among working proprietors. We document the following facts: a) There is a strong negative association between the fraction of women in the top layer of management and several establishment outcomes, among them business volume, investment, total wage bill per worker, total employment, and turnover; b) Establishments with a high fraction of women in the top layer of management are more likely to implement female-friendly policies, such as providing childcare facilities or promoting and mentoring female junior staff; c) The fraction of women in the top layer of management is also negatively associated with employment and wages, both male and female, full-time and part-time. However, all of these associations vanish when we include establishment fixed effects and establishment-specific time trends. This reveals a substantial sorting of female managers across establishments: small and less productive establishments that invest less, pay their employees lower wages, but are more female-friendly are more likely to be led by women.
    Keywords: gender, firm performance, employer-employee data
    JEL: D22 J16 J70 M50
    Date: 2014–11
  4. By: Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza)
    Abstract: This paper analyzes the relationship between reported health status and time allocation decisions in six European countries. Using the Multinational Time Use Study, we find that a better perception of own health is associated with less time devoted to sleep, personal care, and non-market work, for both men and women, and with less time in leisure for men, while it is associated with more time in market work for both men and women. We also find that the relationship with activities is very similar across countries, and that market work has a relationship of substitution with sleep, personal care, non-market work, and leisure, with mixed evidence for the rest of the uses of time. These findings are consistent with prior results regarding health, market work, and leisure in the US. However, in contrast to the large positive correlation between health and home production in the US, we find a large negative correlation between these activities in the six European countries analyzed. This study represents a first step in understanding cross-country differences in the relationship between health status and time devoted to a range of activities, in contrast with other analyses that have mainly focused only on market work. A better understanding of these cross-country differences may help to identify the effects of public policies on individual uses of time.
    Keywords: health, time allocation, Multinational Time Use Study
    JEL: D13 J16 J22
    Date: 2014–11
  5. By: Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Zhu, Yu (University of Dundee)
    Abstract: This paper analyzes the relationship between parents' time devoted to housework and the time devoted to housework by their children. Using data from the Multinational Time Use Study for the UK, we find positive intergenerational correlations in housework for both parents, indicating that the more time parents devote to housework, the more time their children will devote to housework. However, when endogeneity of the uses of time are considered using the British Household Panel Survey, we find that only fathers' housework time appears to have a statistically significant effect. The IV estimates fully support the FE estimates and suggest that father's housework induced by his partner's non-traditional gender role attitudes towards domestic division of labour and her actual labour supply in the previous wave, has a large and significant effect on children's housework time. Our results contribute to the field of intergenerational mobility of behaviors.
    Keywords: housework, household, intergenerational transfers, Multinational Time Use Study, British Household Panel Survey
    JEL: J16 J22
    Date: 2014–11
  6. By: Sarah Marchal; Natascha Van Mechelen
    Abstract: This paper assesses the current variation in activation strategies directed towards able-bodied persons of working age who rely on a minimum income guarantee in 20 EU Member states. First, we argue that the Active Inclusion notion developed by the European Commission in its 2008 Recommendation on the active inclusion of persons on a large distance of the labour market provides a useful device to categorize current activation strategies towards minimum income protection (MIP) recipients. Next we use this active inclusion concept in a fuzzy set ideal type analysis of purpose-collected institutional data to investigate to what extent current activation strategies reflect the Commission’s concept of active inclusion. We find that there are few countries where the activation discourse has remained a dead letter. Most countries have implemented policy measures that aim to discourage benefit dependency among MIP recipients. Nevertheless, behind the realities of activation strategies towards minimum income recipients seldom lies the notion of active inclusion as defined by the European Commission. Particularly, many countries adopt predominantly negative incentives to increase labour market participation rates, rather than enabling measures. The majority of countries relies heavily on financial and non-financial incentives such as strong reasonable job definitions or severe sanctions for non-compliance with job availability requirements to encourage employment.
    Keywords: activation strategy, fsITA, active inclusion, minimum income schemes, EU social policy
    JEL: I38 J60 J64
    Date: 2014–12
  7. By: Jason L. Kopelman; Harvey S. Rosen
    Abstract: We use data from the Displaced Worker Survey supplements of the Current Population Survey from 1984 to 2012 to investigate the differences in job loss rates between workers in the public and private sectors. Our focus is on the extent to which recessions affect the differential between job loss rates in the two sectors. Our main findings include the following: First, taking into account differences in characteristics among workers does not eliminate sectoral differences in the likelihood of losing one’s job. After accounting for worker characteristics, during both recessionary and non-recessionary periods, the probability of job loss is higher for private sector workers than for public sector workers at all levels of government. Second, the probability of displacement for private sector workers increased during both the Great Recession and earlier recessions during our sample period. Third, it is less straightforward to characterize the experience of public sector workers during recessions. Job loss rates sometimes increased and sometimes decreased, depending on whether the employer was the federal, state, or local government. The impact of the Great Recession on displacement rates for public sector employees was somewhat different from that in previous recessions. Fourth, the advantage of public sector employment in terms of job loss rates generally increased during recessions for all groups of public sector workers. Thus, the answer to the question posed in the title is that public sector jobs, while not generally recession-proof, do offer more security than private sector jobs, and the advantage widens during recessions. These patterns are present across genders, races, and educational groups.
    JEL: H11 J45
    Date: 2014–11
  8. By: Bijwaard, Govert (NIDI - Netherlands Interdisciplinary Demographic Institute); Wahba, Jackline (University of Southampton)
    Abstract: This paper examines immigrant wage growth taking into account selective out-migration using administrative data from the Netherlands. We also take into account the potential endogeneity of the immigrants' labor supply and their out-migration decisions on their earning profiles using a correlated competing risk model, but we also use standard estimations as done in previous literature. We distinguish between two types of migrants: labor and family migrants given their different labor market and out-migration behavior. We find that simple models lead to biased estimates of the wage growth of immigrants. Controlling for the selective out-migration and endogeneity of labor supply, we find that labor out-migrants are positively selected but family out-migrants are negatively selected. Furthermore, the findings underscore the importance of taking into account the endogeneity of labor supply and out-migration when estimating immigrants' wage growth.
    Keywords: migration dynamics, labor market transitions, competing risks, immigrant assimilation, income growth
    JEL: F22 J61 C41
    Date: 2014–11
  9. By: Sebastian Fischer (Leuphana University Lueneburg, Germany); Inna Petrunyk (Leuphana University Lueneburg, Germany); Christian Pfeifer (Leuphana University Lueneburg, Germany); Anita Wiemer (Leuphana University Lueneburg, Germany)
    Abstract: The authors address the issue of effectiveness of medical rehabilitation in terms of labor market outcomes by analyzing a large representative administrative panel data set for Germany. The research design focuses on socio-demographic group differences in before-after differences in days with unemployment benefits, days in employment, and labor income of participants in medical rehabilitation. The mean before-after differences indicate that medical rehabilitation is rather ineffective with respect to labor market outcomes, because the number of days with unemployment benefits is larger and the number of working days and labor income are smaller after the rehabilitation than before. The differences in the before-after differences are however large between socio-demographic groups. For example, older participants perform significantly worse and better educated participants have significant better labor market outcomes after the rehabilitation than before, whereas gender differences are small.
    Keywords: medical rehabilitation, effectiveness, labor market performance
    JEL: I1 J2
    Date: 2014–12
  10. By: Nelly EL MALLAKH (FERDI); Mathilde MAUREL (Centre d'Economie de la Sorbonne CNRS - Université Paris 1); Biagio SPECIALE (FERDI)
    Abstract: We analyze the effects of the 2011 Egyptian revolution on the relative labor market conditions of women and men using panel information from the Egypt Labor Market Panel Survey (ELMPS). We construct our measure of intensity of the revolution – the governorate-level number of martyrs, i.e. demonstrators who died during the protests - using unique information from the Statistical Database of the Egyptian Revolution. We find that the revolution has reduced the gender gap in labor force participation, employment, and probability of working in the private sector, and it has caused an increase in women’s probability of working in the informal sector. The political change has affected mostly the relative labor market outcomes of women in households at the bottom of the pre-revolution income distribution. We link these findings to the literature showing how a relevant temporary shock to the labor division between women and men can have long run consequences on the role of women in society.Online Appendix :
    JEL: J16 J21 J22 J30
    Date: 2014–12
  11. By: Raúl Ramos (Universitat de Barcelona & AQR-IREA); Esteban Sanromá (Universitat de Barcelona & IEB); Hipólito Simón (Universidadde Alicante & IEI & IEB)
    Abstract: The article examines public-private sector wage differentials in Spain using microdata from the Structure of Earnings Survey (Encuesta de Estructura Salarial). When applying various decomposition techniques, we find that it is important to distinguish by gender and type of contract. Our results also highlight the presence of a positive wage premium for public sector workers that can be partially explained by their better endowment of characteristics, in particular by the characteristics of the establishment where they work. The wage premium is greater for female and fixed-term employees and falls across the wage distribution, being negative for more highly skilled workers.
    Keywords: Public-private sector wage gap, wage distribution, matched employer-employee data, decomposition methods
    JEL: C2 E3 J3 J4
    Date: 2014

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