nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2015‒04‒19
seven papers chosen by
Joseph Marchand
University of Alberta

  1. The Marriage Market, Labor Supply and Education Choice By Pierré-Andre Chiappori; Monica Costa Dias; Costas Meghir
  2. Offshoring and labour market reforms: Modelling the German experience By Beissinger, Thomas; Chusseau, Nathalie; Hellier, Joël
  3. The Minimum Wage and a Non-Competitive Market for Qualifications By Lanot, Gauthier; Sousounis, Panos
  4. Robots: Curse or Blessing? A Basic Framework By Jeffrey D. Sachs; Seth G. Benzell; Guillermo LaGarda
  5. Intra-Household Coping Mechanisms in Hard Times : the Added Worker Effect in the 2001 Argentine Economic Crisis By Laurine Martinoty
  6. Firm-Level Early Intervention Incentives: Which Recent Employers of Disability Program Entrants Would Pay More? By David C. Stapleton; David R. Mann; Jae Song
  7. Nurses’ Motivation and Satisfaction at Work: an exploratory study at the Centro Hospitalar S. João By Fátima Gomes; Teresa Proença

  1. By: Pierré-Andre Chiappori; Monica Costa Dias; Costas Meghir
    Abstract: We develop an equilibrium lifecycle model of education, marriage and labor supply and consumption in a transferable utility context. Individuals start by choosing their investments in education anticipating returns in the marriage market and the labor market. They then match based on the economic value of marriage and on preferences. Equilibrium in the marriage market determines intrahousehold allocation of resources. Following marriage households (married or single) save, supply labor and consume private and public under uncertainty. Marriage thus has the dual role of providing public goods and offering risk sharing. The model is estimated using the British HPS.
    JEL: H31 J12 J16 J22 J24
    Date: 2015–04
  2. By: Beissinger, Thomas; Chusseau, Nathalie; Hellier, Joël
    Abstract: A usual interpretation of the high performance of the German economy since 2005 is that the Hartz labour market reforms have boosted German competitiveness, resulting in higher exports, higher production and lower unemployment. This explanation is at odds with the sequence of observed facts. We propose and model an alternative scenario in which offshoring explains the gains in competitiveness but increases unemployment and inequality, and the subsequent labour market reforms lower unemployment by lessening the reservation wage and expanding the non-tradable sector. The model replicates the developments of the German economy since 1995: 1) Germany offshores more intensively than other advanced countries; 2) The increase in competitiveness and in the exports/production ratio occurs before the implementation of the labour market reform, and this comes with both higher inequality and higher unemployment; 3) The implementation of the reform reduces unemployment, but also decreases the exports/production ratio and increases inequality. The model also predicts that the reduction in unemployment in Germany would have occurred without the Hartz reforms, but later and less intensively. We finally discuss the possible extension of this 'strategy' to other Eurozone countries, and alternative policies that activate similar mechanisms without increasing inequality.
    Keywords: Germany,Inequality,Labour market reform,Offshoring,Unemployment
    JEL: H55 J31 J65
    Date: 2015
  3. By: Lanot, Gauthier (Department of Economics, Umeå School of Business and Economics); Sousounis, Panos (Keele Management School)
    Abstract: In this paper we consider an equilibrium model of demand and supply for several qualifications first in a competitive setting and then in a non-competitive setting. We propose a tractable analytical framework, i.e. when workers choose between qualifications according to a multinomial logit model of choice and when a CES production function describes the substitutions possibilities between the different types of labour. While in the competitive case the effects of the minimum wage are those we expect, in the imperfectly competitive case we find that a minimum wage can create unemployment and we find that the welfare of the population as a function of the minimum wage is not unimodal. We show furthermore that allowing one qualification to be exempted from the minimum wage does not mean that its relative demand is unaffected by changes to the minimum wage.
    Keywords: Minimum wage; wage differentials; segmented labour markets; monopsony
    JEL: J31 J38 J42
    Date: 2015–04–08
  4. By: Jeffrey D. Sachs; Seth G. Benzell; Guillermo LaGarda
    Abstract: Do robots raise or lower economic well-being? On the one hand, they raise output and bring more goods and services into reach. On the other hand, they eliminate jobs, shift investments away from machines that complement labor, lower wages, and immiserize workers who cannot compete. The net effect of these offsetting forces is unclear. This paper seeks to clarify how economic outcomes, positive or negative, depend both on specific parameters of the economy and public policy. We find that a rise in robotic productivity is more likely to lower the welfare of young workers and future generations when the saving rate is low, automatable and non-automatable goods are more substitutable in consumption, and when traditional capital is a more important complement to labor. In some parameterizations the relationship of utility to robotic productivity follows a “noisy U” as large innovations are long-run welfare improving even though small innovations are immiserizing. Policies that redistribute income across generations can ensure that a rise in robotic productivity benefits all generations.
    JEL: E22 E23 E24 E25 H53 J23 O40
    Date: 2015–04
  5. By: Laurine Martinoty (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)
    Abstract: This paper shows that the added worker effect (AWE) plays an important role in coping against aggregate shocks, even in cases where the discouragement effect prevails at a macroeconomic scale. Using an Argentine panel dataset between 2000-2002, we instrument the endogenous variation in the labor market outcomes of household heads using the collapse of the Convertibility era as a natural experiment, and measure its causal impact on their spouses’ labor supply decisions. Within this framework, we show that a woman whose husband experiences the average decline in income is 4.4 percentage points more likely to enter the labor market. Out of four new entrants, three work at least one hour weekly, and one even finds a full time job. Heterogeneous effects are in line with expectations, robustness checks support the validity of our empirical strategy, and our results are robust to various sensitivity tests.
    Keywords: Added worker effect, married women labor market participation, panel data, natural experiment, instrumental variable
    JEL: C33 D13 J22
    Date: 2015
  6. By: David C. Stapleton; David R. Mann; Jae Song
    Keywords: Early Intervention Incentives, Employers, Disability Program Entrants
    JEL: I J
    Date: 2015–03–18
  7. By: Fátima Gomes (Hospital de S. João); Teresa Proença (CEF.UP, Faculdade de Economia, Universidade do Porto)
    Abstract: This study aims to assess nurses’ motivation and satisfaction and measure the impact of socio-demographical and socio-professional variables, namely professional contract. A questionnaire was delivered to a sample consisting of 560 nursing professionals of the second major Hospital in Portugal, Hospital São João (HSJ): 277 nurses on public contract, 173 on open ended contract and 110 on fixed term contract. Results show that the relationship with the patients is the most important factor for nurses’ satisfaction, followed by satisfaction with the job content. Remuneration is the factor in which nurses show the least satisfaction. Nurses with a fixed contract, the most insecure of all, are the ones with greater motivation and satisfaction, contrary to what is expected according to content motivational theories. However, they also have greater expectation that their performance can improve their contract, what may explain the previous results. This paper also suggests that work and the type of contract has an impact on personal life and vice-versa, namely on the intent of leaving the job, on the marital status and the number of children.
    Keywords: motivation, satisfaction, nursing, professional contract
    JEL: J28
    Date: 2015–04

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