nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2015‒05‒02
twelve papers chosen by
Joseph Marchand
University of Alberta

  1. Wage Returns to Mid-Career Investments in Job Training through Employer-Supported Course Enrollment: Evidence for Canada By Ci, Wen; Galdo, Jose C.; Voia, Marcel; Worswick, Christopher
  2. Has Performance Pay Increased Wage Inequality in Britain? By Bryan, Mark L.; Bryson, Alex
  3. Green Skills By Francesco Vona; Giovanni Marin; Davide Consoli; David Popp
  4. Adjusted State Teacher Salaries and the Decision to Teach By Rickman, Dan S.; Wang, Hongbo; Winters, John V.
  5. Conspicuous Work: Peer Working Time, Labour Supply and Happiness for Male Workers By Collewet, Marion; de Grip, Andries; de Koning, Jaap
  6. Coming to Work While Sick: An Economic Theory of Presenteeism with an Application to German Data By Hirsch, Boris; Lechmann, Daniel S. J.; Schnabel, Claus
  7. Is Self-employment a Way to Escape from Skill Mismatches? By Albiol Sanchez, Judit; Diaz-Serrano, Luis; Teruel, Graciela
  8. The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists By Enrico Moretti; Daniel Wilson
  9. Integrating Mobile Phone Technologies into Labor-Market Intermediation: A Multi-Treatment Experimental Design By Dammert, Ana C.; Galdo, Jose C.; Galdo, Virgilio
  10. Does Labour Mobility Foster Innovation? Evidence from Sweden By Braunerhjelm, Pontus; Ding, Ding; Thulin, Per
  11. Uncovering the Gender Participation Gap in the Crime Market By Gavrilova, Evelina; Campaniello, Nadia
  12. Charters Without Lotteries: Testing Takeovers in New Orleans and Boston By Abdulkadiroğlu, Atila; Angrist, Joshua; Hull, Peter D.; Pathak, Parag A.

  1. By: Ci, Wen (Carleton University); Galdo, Jose C. (Carleton University); Voia, Marcel (Carleton University); Worswick, Christopher (Carleton University)
    Abstract: Using longitudinal data for Canada, we analyze the incidence and wage returns to employer supported course enrollment for men and women. Availability of confidential data, along with a relatively rich set of observable covariates, lead us to the estimation of difference-in-differences matching models of the effect of employer supported course enrolment on wages. The estimated average treatment effects on the treated range from 5.5 to 7.2 percent for men and 7.1 to 9.0 for women. While high-skilled workers show disproportionally higher rates of participation in employer-supported training, we observe no wage premiums for these types of workers. Statistically significant positive wage returns are found, on the other hand, for low-skilled workers.
    Keywords: return to adult training, employer supported course enrollment, difference-in-differences model, propensity score matching, Canada
    JEL: C14 I20 J24 J31 M53
    Date: 2015–04
  2. By: Bryan, Mark L. (University of Essex); Bryson, Alex (National Institute of Economic and Social Research (NIESR))
    Abstract: Using data from the British Household Panel Survey (BHPS) we show performance pay (PP) increased earnings dispersion among men and women, and to a lesser extent among full-time working women, in the decade of economic growth which ended with the recession of 2008. PP was also associated with some compression in the lower half of the wage distribution for women. The effects were predominantly associated with a broad measure of PP that included bonuses. However, these effects were modest and there is no indication that PP became increasingly prevalent, as some had predicted, over the decade prior to recession.
    Keywords: wages, wage inequality, performance pay, bonuses
    JEL: J31 J33
    Date: 2015–04
  3. By: Francesco Vona; Giovanni Marin; Davide Consoli; David Popp
    Abstract: The catchword ‘green skills’ has been common parlance in policy circles for a while, yet there is little systematic empirical research to guide public intervention for meeting the demand for skills that will be needed to operate and develop green technology. The present paper proposes a data-driven methodology to identify green skills and to gauge the ways in which the demand for these competences responds to environmental regulation. Accordingly, we find that green skills are high-level analytical and technical know-how related to the design, production, management and monitoring of technology. The empirical analysis reveals that environmental regulation triggers technological and organizational changes that increase the demand for hard technical, engineering and scientific skills. Our analysis suggests also that this is not just a compositional change in skill demand due to job losses in sectors highly exposed to trade and regulation.
    JEL: J24 Q52
    Date: 2015–04
  4. By: Rickman, Dan S. (Oklahoma State University); Wang, Hongbo (Oklahoma State University); Winters, John V. (Oklahoma State University)
    Abstract: Using the 3-year sample of the American Community Survey (ACS) for 2009 to 2011, we compute public school teacher salaries for comparison across U.S. states. Teacher salaries are adjusted for state differences in teacher characteristics, cost of living, household amenity attractiveness and federal tax rates. Salaries of non-teaching college graduates, defined as those with occupations outside of education, are used to adjust for state household amenity attractiveness. We then find that state differences in federal tax-adjusted teacher salaries relative those of other college graduates significantly affects the share of education majors that are employed as teachers at the time of the survey.
    Keywords: teachers, teacher salaries, teaching profession, teacher retention
    JEL: H75 I20 I28 J24 J31 R23
    Date: 2015–04
  5. By: Collewet, Marion (Maastricht University); de Grip, Andries (ROA, Maastricht University); de Koning, Jaap (Erasmus University Rotterdam)
    Abstract: This paper uncovers 'conspicuous work' as a new form of status seeking that can explain social interactions in labour supply. We analyse how peer working time relates to both labour supply and happiness for Dutch male workers. Using a unique measure of peer weekly working time, we find that men's working time increases with that of their peers and that peer working time is negatively related to men's happiness. These findings are consistent with a 'conspicuous work' model, in which individuals derive status from working time.
    Keywords: well-being, social norms, working hours
    JEL: J22 I31 D62
    Date: 2015–04
  6. By: Hirsch, Boris (University of Erlangen-Nuremberg); Lechmann, Daniel S. J. (University of Erlangen-Nuremberg); Schnabel, Claus (University of Erlangen-Nuremberg)
    Abstract: Presenteeism, i.e. attending work while sick, is widespread and associated with significant costs. Still, economic analyses of this phenomenon are rare. In a theoretical model, we show that presenteeism arises due to differences between workers in (health-related) disutility from workplace attendance. As these differences are unobservable by employers, they set wages that incentivise sick workers to attend work. Using a large representative German data set, we test several hypotheses derived from our model. In line with our predictions, we find that bad health status and stressful working conditions are positively related to presenteeism. Better dismissal protection, captured by higher tenure, is associated with slightly fewer presenteeism days, whereas the role of productivity and skills is inconclusive.
    Keywords: presenteeism, absenteeism, sick leave, Germany
    JEL: I19 J22
    Date: 2015–04
  7. By: Albiol Sanchez, Judit (Universitat Rovira i Virgili); Diaz-Serrano, Luis (Universitat Rovira i Virgili); Teruel, Graciela (National Council for the Evaluation of Social Development Policy (CONEVAL))
    Abstract: During the last two decades, skill mismatches have become one of the most important issues of policy concern in the EU (European Commission, 2008). Hence, the literature has stressed the necessity to reduce skill mismatches. We contribute to this literature by analyzing the impact of the transition from salaried employment to self-employment on self-reported skill mismatches. To do so, we resort to the European Community Household Panel (ECHP) covering the period 1994-2001. Using panel data, we track individuals over time and measure their self-reported skill mismatch before and after the transition. Our empirical findings indicate not only that the average self-employee is less likely to declare being skill-mismatched but also that those individuals who transit from salaried employment to self-employment reduce their probability of skill mismatches after the transition.
    Keywords: self-employment, skill mismatches, salaried employment
    JEL: L26 J24 B23
    Date: 2015–04
  8. By: Enrico Moretti; Daniel Wilson
    Abstract: Using data on the universe of U.S. patents filed between 1976 and 2010, we quantify how sensitive is migration by star scientist to changes in personal and business tax differentials across states. We uncover large, stable, and precisely estimated effects of personal and corporate taxes on star scientists’ migration patterns. The long run elasticity of mobility relative to taxes is 1.6 for personal income taxes, 2.3 for state corporate income tax and -2.6 for the investment tax credit. The effect on mobility is small in the short run, and tends to grow over time. We find no evidence of pre-trends: Changes in mobility follow changes in taxes and do not to precede them. Consistent with their high income, star scientists migratory flows are sensitive to changes in the 99th percentile marginal tax rate, but are insensitive to changes in taxes for the median income. As expected, the effect of corporate income taxes is concentrated among private sector inventors: no effect is found on academic and government researchers. Moreover, corporate taxes only matter in states where the wage bill enters the state’s formula for apportioning multi-state income. No effect is found in states that apportion income based only on sales (in which case labor’s location has little or no effect on the tax bill). We also find no evidence that changes in state taxes are correlated with changes in the fortunes of local firms in the innovation sector in the years leading up to the tax change. Overall, we conclude that state taxes have significant effect of the geographical location of star scientists and possibly other highly skilled workers. While there are many other factors that drive when innovative individual and innovative companies decide to locate, there are enough firms and workers on the margin that relative taxes matter.
    JEL: H71 J01 J08 J18 J23 R0
    Date: 2015–04
  9. By: Dammert, Ana C. (Carleton University); Galdo, Jose C. (Carleton University); Galdo, Virgilio (World Bank)
    Abstract: This study investigates the causal impacts of integrating mobile phone technologies into traditional public labor-market intermediation services on employment outcomes. By providing faster, cheaper and up-to-date information on job vacancies via SMS, mobile phone technologies might affect the rate at which offers arrive as well as the probability of receiving a job offer. We implement a social experiment with multiple treatments that allows us to investigate both the role of information channels (digital versus non-digital) and information sets (restricted [public] versus unrestricted [public/private]). The results show positive and significant short-term effects on employment for public labor-market intermediation. While the impacts from traditional labor-market intermediation are not large enough to be statistically significant, the unrestricted digital treatment group shows statistically significant short-term employment effects. As for potential matching efficiency gains, the results suggest no statistically significant effects associated with either information channels or information sets.
    Keywords: mobile phones, labor-market intermediation, ICT, field experiments, Peru
    JEL: I3 J2
    Date: 2015–04
  10. By: Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Ding, Ding (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Thulin, Per (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: By utilising a Swedish unique, matched employer-employee dataset that has been pooled with firm-level patent application data, we provide new evidence that knowledge workers’ mobility has a positive and strongly significant impact on firm innovation output, as measured by firm patent applications. The effect is particularly strong for knowledge workers that have previously worked in a patenting firm (the learning-by-hiring effect), but firms losing a knowledge worker are also shown to benefit (the diaspora effect), albeit more weakly. Finally, the effect is more pronounced when the joining worker originates in another region.
    Keywords: Labour mobility; knowledge diffusion; innovation; social networks
    JEL: J24 O31 R23
    Date: 2015–04–24
  11. By: Gavrilova, Evelina (Norwegian School of Economics); Campaniello, Nadia (University of Essex)
    Abstract: Using data from the U.S. National Incident Based Reporting System we document a gender gap in the number of crimes committed in the property crime market: only 30% of the crimes are committed by women. Starting from the classical Becker's model on crime we investigate some potential reasons for the participation gap looking at the differential incentives, measured in terms of earnings and probability of arrest. We observe that women obtain on average 32% less criminal earnings and face a 10% higher probability of arrest with respect to males. Once we account for type of crime and the attributes of offending, such as weapons, we find that the earnings gap is zero on average, while females still face a 1% higher probability of arrest than males. We also observe that females sort into offense types, characterized by a lower variation in the earnings risk, which reveals that females in the crime market are more risk averse than males. Furthermore, we analyze the participation gap by looking at the perceived incentives. We estimate the elasticities of crime with respect to the expected earnings and to the expected probability of not being arrested for both genders. We find that males respond to both these incentives, while females respond less to the incentive for higher earnings than males and they do not respond to the probability of arrest. Finally, we use a Blinder-Oaxaca type decomposition technique to measure crime differentials between females and males that arise due to different responses to incentives. We find that, in a counter factual scenario where the female elasticities increase to the level of the male ones, women would commit 40% more crimes than they actually do, reducing the male-female participation gap by almost 50%.
    Keywords: participation gap, gender discrimination, crime
    JEL: J71 J16 K42
    Date: 2015–04
  12. By: Abdulkadiroğlu, Atila (Duke University); Angrist, Joshua (MIT); Hull, Peter D. (Massachusetts Institute of Technology); Pathak, Parag A. (MIT)
    Abstract: Lottery estimates suggest oversubscribed urban charter schools boost student achievement markedly. But these estimates needn't capture treatment effects for students who haven't applied to charter schools or for students attending charters for which demand is weak. This paper reports estimates of the effects of charter school attendance on middle-schoolers in charter takeovers in New Orleans and Boston. Takeovers are traditional public schools that close and then re-open as charter schools. Students enrolled in schools designated for closure are eligible for "grandfathering" into the new schools; that is, they are guaranteed seats. We use this fact to construct instrumental variables estimates of the effects of passive charter attendance: the grandfathering instrument compares students at schools designated for takeover with students who appear similar at baseline and who were attending similar schools not yet closed, while adjusting for possible violations of the exclusion restriction in such comparisons. Estimates for a large sample of takeover schools in the New Orleans Recovery School District show substantial gains from takeover enrollment. In Boston, where we can compare grandfathering and lottery estimates for a middle school, grandfathered students see achievement gains at least as large as the gains for students assigned seats in lotteries. A non-charter Boston turnaround intervention that had much in common with the charter treatment generates gains as large as those seen for takeovers, but other more modest turnaround interventions produce much smaller effects.
    Keywords: education production, education reform, instrumental variables, compliers
    JEL: I21 I28 J24 C26 C36
    Date: 2015–04

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