nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2017‒11‒19
ten papers chosen by
Joseph Marchand
University of Alberta

  1. The effect of peer gender on major choice By Ulf Zölitz; Jan Feld
  2. The Lifecycle Wage Growth of Men and Women: Explaining Gender Differences in Wage Trajectories By Mary Ann Bronson; Peter Skogman Thoursie
  3. Skilled-Unskilled Wage Asymmetries as an Outcome of Skewed International Trade Patterns in the South By Mamoon, Dawood
  4. Active labour market programmes in Latin America and the Caribbean: Evicence from a meta analysis By Escudero, Verónica; Kluve, Jochen; López Mourelo, Elva; Pignatti, Clemente
  5. The Effect of Paid Vacation on Health: Evidence from Sweden By Hofmarcher, Thomas
  6. Interactions of Public Paratransit and Vocational Rehabilitation By Christopher M Clapp; Steven Stern; Steven Dan Yu
  7. Pay, Rank and Job Satisfaction amongst Academic Economists in the UK. By Karen Mumford; Cristina Sechel
  8. Analyzing the Influence of Occupational Licensing Duration and Grandfathering on Labor Market Outcomes By Kleiner, Morris M.; Han, Suyoun
  9. Gender wage discrimination and trade openness. Prejudiced employers in an open industry By Yahmed, Sarra Ben
  10. Trade exposure of Western Europe to China and Eastern Europe: A spatial econometric analysis of the effects on regional manufacturing employment from 1991-2011 By Badinger, Harald; Reuter, Wolf Heinrich

  1. By: Ulf Zölitz; Jan Feld
    Abstract: This paper investigates how the peer gender composition in university affects students' major choices and labor market outcomes. Women who are randomly assigned to more female peers become less likely to choose male-dominated majors, they end up in jobs where they work fewer hours and their wage grows at a slower rate. Men become more likely to choose male-dominated majors after having had more female peers, although their labor market outcomes are not affected. Our results suggest that the increasing female university enrolment over recent decades has paradoxically contributed to the occupational segregation among university graduates that persists in today’s labor market.
    Keywords: Peer effects, major choice, gender composition
    JEL: I21 I24 J24
    Date: 2017–11
  2. By: Mary Ann Bronson (Department of Economics, Georgetown University); Peter Skogman Thoursie (Department of Economics, Stockholm University)
    Abstract: Why do women's wages grow more slowly than men's? Theory indicates that wages grow over the lifecycle as workers progress up an internal "career ladder," and as they switch firms and move up the "job ladder" to higher-paying firms. In this paper, we use employer-employee linked data from Sweden to decompose cumulative wage growth of men and women at each age into wage gains associated with (1) firm changes, (2) large discrete wage gains relative to one's co-workers -- which we call promotions -- and (3) interim (non-promotion) growth. While women switch firms at almost identical rates as men over the lifecycle, they have substantially lower promotion rates at all ages. Though relatively rare, promotions are the largest driver of wage growth by 45 for both men and women. Gender differences in promotion-related growth account for around 73 to 83% of the differences in lifecycle wage growth of college-educated men and women from ages 25 to 45. Differences in wage growth associated with firm changes account for 28%, while interim, non-promotion growth is slightly higher for women. Gender differences in sorting across firms with steeper vs. flatter wage structures explain only about 10% of differences in promotion probability. Lastly, we study hours worked and the evolution of the promotion gap with time to first birth. We use our findings to explain why childbirth penalties for women are so large, immediate and persistent; why gender wage differentials vary across professions; and what contributes to gender differences in estimated firm wage premiums.
    Keywords: Gender Wage Differentials, Job Ladders, Career Ladders, Promotions.
    JEL: J16 J31
    Date: 2017–10–06
  3. By: Mamoon, Dawood
    Abstract: The paper tries to find out the impact of trade liberalization on income inequality. The literature suggests that trade favors one segment of the society over other and cause uneven development. For example, one possible way through which inequality is suspected to seep into the economy through processes of liberalization is by increasing the relative wages of skilled labor as compared to the unskilled ones. Empirical evidence is provided to this effect by employing Theil Wage inequality Index and up to 28 different concepts of openness/ trade policy. OLS as well as 2SLS regressions with numerous specifications were run. It is found out that openness not only causes wage inequality but the relationship is significant for the developing countries. Additionally, the study also suggests that human capital, which is accrued from liberalization processes, is responsible for amplifying wage inequality.
    Keywords: International Trade, Education, Labor Markets
    JEL: F16 J23
    Date: 2017–11–06
  4. By: Escudero, Verónica; Kluve, Jochen; López Mourelo, Elva; Pignatti, Clemente
    Abstract: We present a systematic collection and assessment of impact evaluations of active labour market programmes (ALMP) in Latin America and the Caribbean (LAC). The paper delineates the strategy to compile a novel meta database and provides a narrative review of 51 studies. Based on these studies, the quantitative analysis extracts a sample of 296 impact estimates, and uses meta regression models to analyse systematic patterns in the data. In addition to analysing earnings and employment outcomes as in previous meta analyses, we also code and investigate measures of job quality, such as the effects on hours worked and formality. We find that ALMPs in LAC are particularly effective in increasing the probability of having a formal job, compared to other outcomes. Our results also show that training programmes are slightly more effective than other types of interventions. Moreover, when looking at the sample of training programmes alone, we observe that formal employment is also the outcome category that is most likely to be impacted positively by these programmes. In terms of targeting, we find that ALMPs in the region work better for women than for men, and for youth compared to prime-age workers. Finally, medium-run estimates are not more likely to be positive than short-run estimates, while programmes of short duration (4 months or less) are significantly less likely to produce positive effects compared to longer interventions.
    Keywords: active labour market program,Latin America and the Caribbean,employment,informality,impact evaluation,meta analysis
    JEL: J08 J24 O54
    Date: 2017
  5. By: Hofmarcher, Thomas (Department of Economics, Lund University)
    Abstract: This study estimates the causal effect of receiving additional paid vacation days on health. Using register data on the universe of central government employees in Sweden, I exploit an age-based rule stipulated in the collective agreement covering these employees. Identification is achieved by combining a regression discontinuity with a difference-in-differences design to control for time-invariant differences between consecutive birth cohorts and isolate the true effect at two separate discontinuities at ages 30 and 40. The main results indicate no statistically significant changes in health (as proxied by specialized outpatient care visits, inpatient care admissions, and long-term sick leaves) induced by an extension of three paid vacation days at age 30 and four days at age 40. There is no evidence of significant effects by sex, being a (lone) parent, education level, or broad group of diagnoses. These findings challenge the historically grown health argument for additional paid vacation days.
    Keywords: vacation; holiday; working time; health
    JEL: I18 J22 J81 M52
    Date: 2017–11–07
  6. By: Christopher M Clapp; Steven Stern; Steven Dan Yu
    Abstract: Federal and state governments spend over $3 billion annually on public-sector Vocational Rehabilitation (VR) programs, yet almost a third of people with disabilities report having inadequate access to the transportation necessary to commute to a job, potentially negating the positive e¤ects of these interventions. We examine this previously understudied connection by assessing the impact access to public paratransit has on measures of VR program e¤ectiveness. To do so, we use the data and estimates from three previously estimated structural models of VR service receipt and labor market outcomes that contain limited information about mobility. We spatially link the generalized residuals from these models to di¤erent measures of the availability and effciency of local paratransit systems to determine whether paratransit explains any of the residual variation in the short- or long-run labor market outcomes of individuals receiving VR services. Results show that access to paratransit is an important determinant of the e¢ cacy of VR services, but that effects are heterogeneous across disability groups. We discuss the policy implications of our findings for VR programs.
    Date: 2017
  7. By: Karen Mumford; Cristina Sechel
    Abstract: We use new data to explore the determinants of pay, rank, and job satisfaction for academic economists in the UK. After allowing for a broad range of characteristics, including measures of individual productivity and workplace features, we find a raw (unconditional) gender salary difference of 15 log percentage points (lpp) and a conditional gender pay gap of 9 lpp. This aggregate pay gap is strongly influenced by the relative concentration of men in higher paid job ranks where there are also within-rank gender pay gaps. Nevertheless, the majority of academic economists (male and female) are satisfied with their job.
    Keywords: economics, gender, pay, satisfaction, gaps, academia.
    JEL: A1 A11 A2 I3 J01 J31 J7
    Date: 2017–11
  8. By: Kleiner, Morris M. (Federal Reserve Bank of Minneapolis); Han, Suyoun (Federal Reserve Bank of Minneapolis)
    Abstract: The length of time from the implementation of an occupational licensing statute (i.e., licensing duration) may matter in influencing labor market outcomes. Adding to or raising the entry barriers are likely easier once an occupation is established and has gained influence in a political jurisdiction. States often enact grandfather clauses and ratchet up requirements that protect existing workers and increase entry costs to new entrants. We analyze the labor market influence of the duration of occupational licensing statutes for 13 major universally licensed occupations over a 75-year period. These occupations comprise the vast majority of workers in these regulated occupations in the United States. We provide among the first estimates of potential economic rents to grandfathering. We find that duration years of occupational licensure are positively associated with wages for continuing and grandfathered workers. The estimates show a positive relationship of duration with hours worked, but we find moderately negative results for participation in the labor market. The universally licensed occupations, however, exhibit heterogeneity in outcomes. Consequently, unlike some other labor market public policies, such as minimum wages or direct unemployment insurance benefits, occupational licensing would likely influence labor market outcomes when measured over a longer period of time.
    Keywords: Occupational licensing; Duration and grandfathering effects on wage determination; Hours worked; Work force participation; Labor market regulation
    JEL: J38 K20 L12
    Date: 2017–10–23
  9. By: Yahmed, Sarra Ben
    Abstract: I introduce taste-based discrimination in a trade model with imperfect competition and provide an explanation for the heterogeneous effects of international trade on the gender wage gap within sectors. Firms operate in an oligopoly where prejudiced employers can use their rents to pay men a premium in line with Becker's theory. On one hand, import competition reduces local rents and with them the average gender wage gap in sectors that were sheltered from competition prior to trade liberalization. On the other hand, easier access to foreign markets can increase domestic firms' profits and enable discriminatory firms to maintain wage gaps. Evidence from the Uruguayan trade liberalisation supports the empirical relevance of the taste-based discrimination mechanism at the sectoral level.
    Keywords: gender wage gap,employer taste-based discrimination,international trade,imperfect competition
    JEL: F16 J31 J7 L13
    Date: 2017
  10. By: Badinger, Harald; Reuter, Wolf Heinrich
    Abstract: This study analyzes the effects of increased trade with China and Eastern Europe on manufacturing employment in 1,146 NUTS-3 regions of 17 Western European countries from 1991 to 2011. Building on Autor et al. (2013) we aim at identifying the causal effects of an increase in import and export exposure on regional manufacturing employment, thereby, explicitly accounting for labor and product market spillovers. Overall, our results support previous findings of a negative effect of increased import exposure from China for our sample of Western European countries, whereas spatial spillover effects turn out to be positive, slightly mitigating the quantitative impact without changing results quantitatively. Moreover, our cross-country study highlights the pronounced heterogeneity of the estimated effects of trade exposure on manufacturing employment across countries with respect to the trade balance.
    Keywords: International Trade,Globalization,Western Europe,China,Eastern Europe,Employment
    JEL: F16 J31 R11
    Date: 2017

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