nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2017‒03‒05
nine papers chosen by
Joseph Marchand
University of Alberta

  1. The Impact of Syrian Refugees on Natives' Labor Market Outcomes in Turkey: Evidence from a Quasi-Experimental Design By Evren Ceritoglu; Hatice Burcu Gurcihan Yunculer; Huzeyfe Torun; Semih Tumen
  2. Parental sleep and employment: evidence from a British cohort study By Joan Costa-Font; Sarah Flèche
  3. Family Economics Writ Large By Jeremy Greenwood; Nezih Guner; Guillaume Vandenbroucke
  4. Agricultural Diversity, Structural Change and Long-run Development: Evidence from the U.S. By Martin Fiszbein
  5. The shale revolution and entrepreneurship: an assessment of the relationship between energy sector expansion and small business entrepreneurship in US counties By Tsvetkova, Alexandra; Partridge, Mark
  6. Mother’s Time Allocation, Child Care and Child Cognitive Development By Brilli, Ylenia
  7. Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees By Dauth, Christine
  8. The Characteristics and Performance of Family Firms: Exploiting information on ownership, governance and kinship using total population data By Andersson, Fredrik; Johansson, Dan; Karlsson, Johan; Lodefalk, Magnus; Poldahl, Andreas
  9. State Health Insurance Mandates and Labor Market Outcomes: New Evidence on Old Questions By Yaa Akosa Antwi; Johanna Catherine Maclean

  1. By: Evren Ceritoglu; Hatice Burcu Gurcihan Yunculer; Huzeyfe Torun; Semih Tumen
    Abstract: Civil conflict in Syria, started in March 2011, led to a massive wave of forced immigration from the Northern Syria to the Southeastern regions of Turkey, which later had serious economic/political repercussions on the MENA region and most of the Europe. This paper exploits this natural experiment to estimate the impact of Syrian refugees on the labor market outcomes of natives in Turkey. Using a difference-in-differences strategy, we find that immigration has somewhat affected the employment outcomes of natives, while its impact on wage outcomes has been negligible. We document some employment losses among informal workers as a consequence of refugee inflows. Formal employment increased slightly potentially due to increased social services in the region. The majority of those who lost their informal jobs have either left the labor force or remained unemployed. Formal employment and unemployment rates have increased, while labor force participation, informal employment, and job finding rates have declined among natives. Disadvantaged groups – i.e., women, younger workers, and less-educated workers – have been affected the most. The prevalence of informal employment in the Turkish labor markets has amplified the negative impact of Syrian refugee inflows on natives’ labor market outcomes. Overall, the impact of Syrian refugee inflows on the Turkish labor markets has been limited, which suggests that the potential costs on the European and other affected labor markets might also be limited.
    Keywords: Syrian civil conflict, Immigration, Turkey, Labor market, Informality, Difference in differences
    JEL: J15 J21 J46 J61 C21
    Date: 2017
  2. By: Joan Costa-Font; Sarah Flèche
    Abstract: We show that sleep deprivation exerts a strong negative effect on labour market performance. We exploit variations in child sleep quality to instrument for parental sleep quality. A one-hour reduction in sleep duration significantly decreases labour force participation, the number of hour’s worked and household income. In addition, we find that low-skilled mothers are more likely to opt out of the labour market and work less hours than high-skilled mothers when exposed to sleep deprivation. We argue that sleep is a major determinant of employment outcomes that needs more attention in designing economic models of time allocation and employment policies.
    Keywords: child sleep; sleep; maternal employment; working hours; job satisfaction; ALSPAC
    JEL: I18 J13 J22 J28
    Date: 2017–02
  3. By: Jeremy Greenwood (University of Pennsylvania); Nezih Guner (CEMFI, Centro de Estudios Monetarios y Financieros); Guillaume Vandenbroucke (Federal Reserve Bank of St. Louis)
    Abstract: Powerful currents have reshaped the structure of families over the last century. There has been (i) a dramatic drop in fertility and greater parental investment in children; (ii) a rise in married female labor-force participation; (iii) a significant decline in marriage and a rise in divorce; (iv) a higher degree of positive assortative mating; (v) more children living with a single mother; (vi) shifts in social norms governing premarital sex and married women's roles in the workplace. Macroeconomic models explaining these aggregate trends are surveyed. The relentless flow of technological progress and its role in shaping family life are stressed.
    Keywords: Assortative mating, baby boom, baby bust, family economics, female labor supply, fertility, household income inequality, household production, human capital, macroeconomics, marriage and divorce, quality-quantity tradeoff, premarital sex, quantitative theory, single mothers, social change, survey paper, technological progress, women's rights.
    JEL: D58 E1 E13 J1 J2 J12 J13 J22 N30 O3 O11 O15
    Date: 2017–01
  4. By: Martin Fiszbein
    Abstract: This paper examines the role of agricultural diversity in the process of development. Using data from U.S. counties and exploiting climate-induced variation in agricultural production patterns, I show that mid-19th century agricultural diversity had positive long-run effects on population density and income per capita. Examining the effects on development outcomes over time, I find that early agricultural diversity fostered structural change during the Second Industrial Revolution. Besides stimulating industrialization, agricultural diversity boosted manufacturing diversification, patent activity, and new labor skills, as well as knowledge- and skill-intensive industries. These results are consistent with the hypothesis that diversity spurs the acquisition of new ideas and new skills because of the presence of cross-sector spillovers and complementarities.
    JEL: N11 N12 N51 O13 O14
    Date: 2017–02
  5. By: Tsvetkova, Alexandra; Partridge, Mark
    Abstract: economic growth and overall regional socioeconomic wellbeing. Entrepreneurship is particularly important for economic health of rural and remote areas. The recent shale boom brought growth to many communities creating new jobs; however, it is unclear how these effects are distributed across self-employed and wage and salary segments of local economies. The resource curse literature suggests that a booming energy sector may crowd out entrepreneurship. Given the self-reinforcing nature of local self-employment and entrepreneurship in general, such a negative impact of expanding energy sector, if present, is likely to suppress future growth prospects in regions that experience the shale revolution. Using SUR and IV approaches and a differencing strategy, this paper estimates the effects of the growth in oil and gas extraction industry on self-employment growth in metropolitan and rural US counties during the 2001-2013 period. The results suggest that after three years, oil and gas sector expansion tends to crowd out self-employment. In contrast, energy sector expansion promotes wage and salary employment growth in nonmetro counties but has crowding out effects in metro counties. Overall, we find that the expanding energy sector suppresses self-employment, especially in rural communities, in line with one mechanism of the resource curse.
    Keywords: Entrepreneurship; Oil and Gas Extraction; economic development; regional economics
    JEL: L26 O1 O13 P25
    Date: 2017–02–23
  6. By: Brilli, Ylenia (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: This paper analyzes the effects of maternal employment and non-parental child care on child cognitive development, taking into account the mother's time allocation between leisure and child-care time. I estimate a behavioral model, in which maternal labor supply, non-parental child care and time allocation decisions are considered to be endogenous choices of the mother, and the child cognitive development depends on maternal and non-parental child care. The results show that the mother's child-care time is more productive than non-parental child care, at any age of the child. This implies that a reduction in a mother's child-care time, induced by a higher labor supply, may not be compensated for by the increase in non-parental child care use, and, hence, may lead to a negative effect on the child's cognitive ability. The estimation of a counterfactual model where a mother can only allocate her time between child care and work shows that neglecting the mother's time allocation choice between child care and leisure overestimates the productivity of a mother's time with the child.
    Keywords: mother employment; mother time allocation; non-parental child care; child development; structural estimation
    JEL: C15 D13 J13 J22
    Date: 2017–02–28
  7. By: Dauth, Christine (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "I analyze the effects of further training subsidies for low-skilled employees on individual labor market outcomes in Germany for the period from 2007 to 2012. Using detailed administrative data, I exploit cross-regional variation in the conditional policy styles of local employment agencies and use this fuzzy discontinuity as an instrument for program participation. I find that subsidies significantly increase cumulative employment duration and earnings for the subgroup of compliers. These gains are particularly pronounced for workers who are women, younger than 35 years old, non-German citizens and participated before the economic crisis of 2009." (Author's abstract, IAB-Doku) ((en))
    Keywords: Weiterbildung, Teilnehmer, Niedrigqualifizierte, Arbeitsmarktchancen, Weiterbildungsförderung, regionale Disparität, Einkommenseffekte
    JEL: J18 J24 J31 I21
    Date: 2017–02–27
  8. By: Andersson, Fredrik (Statistics Sweden); Johansson, Dan (Örebro University School of Business); Karlsson, Johan (Örebro University School of Business); Lodefalk, Magnus (Örebro University School of Business); Poldahl, Andreas (Statistics Sweden)
    Abstract: Family firms are often considered characteristically different from non-family firms, and the economic implications of these differences have generated significant academic debate. However, our understanding of family firms suffers from an inability to identify them in total population data, as this requires information on owners, their kinship and involvement in firm governance, which is rarely available. We present a method for identifying domiciled family firms using register data that offers greater accuracy than previous methods. We then apply it to data from Statistics Sweden concerning firm ownership, governance and kinship over the years 2004-2010. Next, we use Swedish data to estimate these firms’ economic contribution to total employment and gross domestic product (GDP) and compare them to private domiciled non-family firms in terms of their characteristics and economic performance. We find that the family firm is the prevalent organizational form, contributing to over one-third of all employment and GDP. Family firms are common across industries and sizes, ranging from the smallest producers to the largest multinational firms. However, their characteristics differ across sizes and legal forms, thereby indicating that the seemingly contradictory findings among previous studies on family firms may be due to unobserved heterogeneity. We furthermore find that they are smaller than private non-family firms in employment and sales and carry higher solidity, although they are more profitable. These differences diminish with firm size, however. We conclude that the term ‘family firm’ contains great diversity and call for increased attention to their heterogeneity.
    Keywords: entrepreneur; family firms; employment; GDP; register data
    JEL: D22 G32 J21
    Date: 2017–02–21
  9. By: Yaa Akosa Antwi; Johanna Catherine Maclean
    Abstract: In this study we re-visit the relationship between private health insurance mandates, access to employer-sponsored health insurance, and labor market outcomes. Specifically, we model employer-sponsored health insurance access and labor market outcomes across the lifecycle as a function of the number of high cost mandates in place at labor market entrance. Our analysis draws on a long panel of workers from the National Longitudinal Survey of Youth 1979 and exploits variation in five high cost state mandates between 1972 and 1989. Four principal findings emerge from our analysis. First, we find no strong evidence that high cost state health insurance mandates discourage employers from offering insurance to employees. Second, employers adjust both wages and labor demand to offset mandate costs, suggesting that employees place some value on the mandated benefits. Third, the effects are persistent, but not permanent. Fourth, the effects are heterogeneous across worker types. These findings have implications for thinking through the full labor market effects of health insurance expansions.
    JEL: H2 I13 J3
    Date: 2017–02

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