nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2018‒09‒10
25 papers chosen by
Joseph Marchand
University of Alberta

  1. The Supply of Skill and Endogenous Technical Change: Evidence from a College Expansion Reform By Carneiro, Pedro; Liu, Kai; Salvanes, Kjell G.
  2. Labour share developments over the past two decades: The role of technological progress, globalisation and “winner-takes-most” dynamics By Cyrille Schwellnus; Mathilde Pak; Pierre-Alain Pionnier; Elena Crivellaro
  3. Earnings outcomes in metropolitan and regional labour markets? A gender-based analysis for New South Wales and Victoria By John Hicks; Girijasankar Mallik; Parikshit Basu
  4. Flexible Work Organization and Employer Provided Training: Evidence from German Linked Employer-Employee Data By Campaner, Annika; Heywood, John S.; Jirjahn, Uwe
  5. Financial Incentives and Earnings of Disability Insurance Recipients: Evidence from a Notch Design By Ruh, Philippe; Staubli, Stefan
  6. Unintended Consequences of China's New Labor Contract Law on Unemployment and Welfare Loss of the Workers By Akee, Randall K. Q.; Zhao, Liqiu; Zhao, Zhong
  7. Gender Wage Gap at the Top, Job Inflexibility and Product Market Competition By Heyman, Fredrik; Norbäck, Pehr-Johan; Persson, Lars
  8. Trouble in the Tails? What We Know about Earnings Nonresponse Thirty Years after Lillard, Smith, and Welch By Bollinger, Christopher R.; Hirsch, Barry; Hokayem, Charles M.; Ziliak, James P.
  9. Intra-Household Wealth and Welfare Inequality in the US: Estimations from a Collective Model of Labor Supply By Molina, José Alberto; Gimenez-Nadal, J. Ignacio; Velilla, Jorge
  10. Has the Economic Crisis Worsened the Work-Related Stress and Mental Health of Temporary Workers in Spain? By Bartoll, Xavier; Gil, Joan; Ramos, Raul
  11. Commuting Time and Sick-Day Absence of US Workers By Gimenez-Nadal, J. Ignacio; Molina, José Alberto; Velilla, Jorge
  12. Oligopoly, Macroeconomic Performance, and Competition Policy By José Azar; Xavier Vives
  13. Place-specific Determinants of Income Gaps: New Sub-National Evidence from Chiapas, Mexico By Carlo Pietrobelli; Miguel Angel Santos; Ricardo Hausmann
  14. Underemployment in the US and Europe By David N.F. Bell; David G. Blanchflower
  15. The Effects of Sexism on American Women: The Role of Norms vs. Discrimination By Kerwin Kofi Charles; Jonathan Guryan; Jessica Pan
  16. How Has the Two-Day Weekend Policy Affected Labour Supply and Household Work in China? By Fang, Tony; Lin, Carl; Tang, Xueli
  17. Trade-Induced Skill Polarization By Gu, Grace; Malik, Samreen; Pozzoli, Dario; Rocha, Vera
  18. The Occupational Structures of Low- and High-Wage Service Sector Establishments By Eliza Forsythe
  19. Human-Capital Externalities in China By Edward L. Glaeser; Ming Lu
  20. An Open and Data-driven Taxonomy of Skills Extracted from Online Job Adverts By Jyldyz Djumalieva1; Cath Sleeman
  21. The Consequences of Academic Match between Students and Colleges By Eleanor Wiske Dillon; Jeffrey Smith
  22. Work Motivation and Teams By Simone Haeckl; Rupert Sausgruber; Jean-Robert Tyran
  23. Supplemental Security Income and Child Outcomes: Evidence from Birth Weight Eligibility Cutoffs By Melanie Guldi; Amelia Hawkins; Jeffrey Hemmeter; Lucie Schmidt
  24. Immigrant Artists: Enrichment or Displacement? By Borowiecki, Karol Jan; Graddy, Kathryn
  25. Organised Decentralisation of Collective Bargaining: Case studies of Germany, Netherlands and Denmark By Christian Lyhne Ibsen; Maarten Keune

  1. By: Carneiro, Pedro (University College London); Liu, Kai (University of Cambridge); Salvanes, Kjell G. (Norwegian School of Economics)
    Abstract: We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several cities in Norway, resulting from the construction of new colleges in the 1970s. We find that skilled wages increased as a response, suggesting that along with an increase in the supply there was also an increase in demand for skill. We also show that college openings led to an increase in the productivity of skilled labor and investments in R&D. Our findings are consistent with models of endogenous technical change where an abundance of skilled workers may encourage firms to adopt skill-complementary technologies, leading to an upward-sloping long-run demand for skill.
    Keywords: endogenous technical change, college reform
    JEL: J23 J24
    Date: 2018–07
  2. By: Cyrille Schwellnus; Mathilde Pak; Pierre-Alain Pionnier; Elena Crivellaro
    Abstract: Over the past two decades, real median wage growth in many OECD countries has decoupled from labour productivity growth, partly reflecting declines in labour income shares. This paper analyses the drivers of labour share developments using a combination of industry- and firm-level data. Technological change in the investment goods-producing sector and greater global value chain participation have compressed labour shares, but the effect of technological change has been significantly less pronounced for high-skilled workers. Countries with falling labour shares have witnessed both a decline at the technological frontier and a reallocation of market shares toward “superstar” firms with low labour shares (“winner-takes-most” dynamics). The decline at the technological frontier mainly reflects the entry of firms with low labour shares into the frontier rather than a decline of labour shares in incumbent frontier firms, suggesting that thus far this process is mainly explained by technological dynamism rather than anti-competitive forces.
    Keywords: global value chains, Labour share, skills, superstar firms
    JEL: D33 J24 L11 O33
    Date: 2018–09–04
  3. By: John Hicks (Charles Sturt University); Girijasankar Mallik (University of Western Sydney); Parikshit Basu (Charles Sturt University)
    Abstract: It is generally accepted that the key characteristics of labour markets in Australian capital cities differ from those of the labour markets in the rest of Australia although labour market policy is typically conducted at the national level without taking regional differences into account. Gender issues have frequently been highlighted in the many analyses of urban Australian labour markets. Other studies have focused on the urban-regional dichotomy of the labour market. However, although studies of labour market features and outcomes in Australia have focused on issues related to location or gender, they rarely address both. This paper seeks to establish if discrimination by gender differs between regional and urban communities in the Australian context. The conceptual framework used in this research is in the tradition of human capital analysis. We first analyse, separately, determinants of hourly wage rates and weekly incomes by gender in Australian metropolitan cities and regional areas. We then utilise the Blinder-Oaxaca procedure, to decompose the mean outcome differences between men and women within a region into that part that is ?explained? by gender differences in endowments and that part which remains unexplained by such differences and which therefore provides a measure of discrimination. The data is drawn from individual level confidentialised unit record files (CURF) data of the 2006 Australian Census. Gender-based analysis is conducted for each region, Sydney, regional NSW, Melbourne and regional Victoria, with a view to discerning if the impact of the determinants vary spacially. The research confirmed that gender plays an important role in influencing labour market outcomes. The research also identified a number of factors that impact on both hourly wages and weekly earnings and assessed how these factors impacted differently for men and women across metropolitan and regional areas. The results indicate that, in general, differences exist between men and women in hourly wage rate and weekly income earned. The determinants of these differences varied between metropolitan cities and regional areas. With respect to issues of gender discrimination in employment, the use of the Blinder-Oaxaca decomposition technique confirmed the presence of discrimination against women in all regions. Wage discrimination is more pronounced in metropolitan areas whilst discrimination in weekly earnings is more important in non-metropolitan areas. The latter discrimination is likely to reflect both fewer job opportunities for women and a lower ownership of income earning assets by women.
    Keywords: Australian labour markets; discrimination against women; rural disadvantage
    JEL: J70
    Date: 2018–07
  4. By: Campaner, Annika (University of Trier); Heywood, John S. (University of Wisconsin, Milwaukee); Jirjahn, Uwe (University of Trier)
    Abstract: We examine the hypothesis that flexible work organization involves greater skill requirements and, hence, an increased likelihood of receiving employer provided training. Using unique linked employer-employee data from Germany, we confirm that employees are more likely to receive training when their jobs are characterized by greater decision-making autonomy and task variety, two essential elements of flexibility. Critically, the training associated with workplace flexibility does not simply reflect technology. Skill-biased organizational change plays its own role. Moreover, we show that the training associated with workplace flexibility is disproportionately oriented toward employees with a greater formal education. Our results also provide modest evidence of an age bias of workplace flexibility. However, the link between workplace flexibility and training does not appear to differ by gender.
    Keywords: delegation, multitasking, skill-biased organizational change, training
    JEL: J24 L00 M53
    Date: 2018–07
  5. By: Ruh, Philippe (University of Zurich); Staubli, Stefan (University of Calgary)
    Abstract: Most countries reduce Disability Insurance (DI) benefits for beneficiaries earning above a specified threshold. Such an earnings threshold generates a discontinuous increase in tax liability – a notch – and creates an incentive to keep earnings below the threshold. Exploiting such a notch in Austria, we provide transparent and credible identification of the effect of financial incentives on DI beneficiaries' earnings. Using rich administrative data, we document large and sharp bunching at the earnings threshold. However, the elasticity driving these responses is small. Our estimate suggests that relaxing the earnings threshold reduces fiscal cost only if program entry is very inelastic.
    Keywords: disability insurance, labor supply, benefit notch, bunching
    JEL: H53 H55 J14 J21
    Date: 2018–07
  6. By: Akee, Randall K. Q. (University of California, Los Angeles); Zhao, Liqiu (Renmin University of China); Zhao, Zhong (Renmin University of China)
    Abstract: China's new Labor Contract Law, which intended to strengthen the labor protection for workers, went into effect on January 1, 2008. The law stipulated that the maximum cumulative duration of successive fixed-term (temporary) labor contracts is 10 years, and employees working for the same employer for more than 10 consecutive years are able to secure an open-ended (permanent) labor contract under the new law, which is highly desirable to employees. However, in order to circumvent the new Labor Contract Law, some employers may have dismissed workers, after the passage of the new law, who had worked in the same firm for more than 10 years. Using data from the 2008 China General Social Survey, we find strong evidence that firms did in fact dismiss their formal-contract employees who have been employed for more than 10 years. Additionally, using a regression discontinuity design based on this exogenous change in unemployment status for this particular group of workers, we show that the dismissed workers suffered significant welfare loss in terms of happiness. Our results are robust to various specifications and placebo tests.
    Keywords: labor contract law, unemployment, happiness, regression discontinuity design, China
    JEL: J41 J64 I31
    Date: 2018–07
  7. By: Heyman, Fredrik; Norbäck, Pehr-Johan; Persson, Lars
    Abstract: Research show that women are disadvantaged in inflexible occupations. We show that this will imply that female managers are on average more skilled than male managers. Due to the higher hurdles faced by women, only the most skilled among them will pursue a management career. This implies that female managers will, on average, be more beneficial for the firm when product market competition is intense. Using detailed matched employee-employer data, we find that (i) more intense product market competition leads to relatively higher wages for female managers and (ii) the share of female managers is higher in firms in more competitive industries.
    Keywords: Career; Competition; Gender wage-gap; Job Inflexibility; Management
    JEL: J7 L2 M5
    Date: 2018–07
  8. By: Bollinger, Christopher R. (University of Kentucky); Hirsch, Barry (Georgia State University); Hokayem, Charles M. (U.S. Census Bureau); Ziliak, James P. (University of Kentucky)
    Abstract: Earnings nonresponse in household surveys is widespread, yet there is limited knowledge of how nonresponse biases earnings measures. We examine the consequences of nonresponse on earnings gaps and inequality using Current Population Survey individual records linked to administrative earnings data. The common assumption that earnings are missing at random is rejected. Nonresponse across the earnings distribution is U-shaped, highest in the left and right tails. Inequality measures differ between household and administrative data due in part to nonresponse. Nonresponse biases earnings differentials by race, gender, and education, particularly in the tails. Flexible copula-based models can account for nonrandom nonresponse.
    Keywords: CPS ASEC, nonresponse bias, copula, measurement error, hot deck imputation, proxy reports, earnings inequality
    JEL: J31 C8 D31
    Date: 2018–07
  9. By: Molina, José Alberto (University of Zaragoza); Gimenez-Nadal, J. Ignacio (University of Zaragoza); Velilla, Jorge (University of Zaragoza)
    Abstract: This paper analyzes the intra-household distribution of wealth and welfare in the United States, within a theoretical framework based on a collective model of labor supply, where household decisions are Pareto efficient, and spouses negotiate a sharing rule for non-labor income. Using the American Time Use Survey for the years 2003 to 2015, estimates show a positive correlation between individual wages and labor supply, while cross-wages go in the opposite direction. Additionally, we find that wives tend to be more altruistic in comparison to their husbands regarding the intra-household allocation of income, which leads to wealth inequalities. However, the intra-household processes appear to be efficient in terms of welfare, as increases in any source of household income are associated with decreases in intra-household inequality, as measured by the spouses' estimated indirect utility. Our results shed light on the spouses' wealth shares and the sharing rule guiding the individual allocations, which may be important in the design of policies aimed at alleviating poverty.
    Keywords: collective model, labor supply, sharing rule, intra-household inequality, welfare, American Time Use Survey
    JEL: J22
    Date: 2018–07
  10. By: Bartoll, Xavier (University of Barcelona); Gil, Joan (University of Barcelona); Ramos, Raul (University of Barcelona)
    Abstract: This paper analyses the causal effects of temporary employment on work-related stress and mental health before (2006/07) and during the economic crisis (2011/12) and examines whether the economic recession worsened these two health outcomes. To control for selection bias, propensity scores (PS) are computed separately for men and women using microdata from two cross-sectional surveys, considering temporary (treatment group) versus permanent employment (control group). Next, we use difference-in-differences estimators stratifying by age, education level, and regional unemployment differences using PS as weights. Our results indicate that a male salaried worker with a temporary labour contract tends to have lower levels of work-related stress in the pre-crisis period, but not for women. The stratification analysis shows lower work-related stress levels among older male adults, workers with a high education level, and employees in regions with high unemployment rates. The economic crisis is responsible for increasing stress only among older temporary workers and male university graduates, without affecting women. We also see evidence of a positive link between temporary employment and poor mental health in both periods, although only for men. We neither find significant impacts for our sample of men or women, nor for most of our population subgroups with the exception of male workers with a university degree.
    Keywords: temporary employment, economic crisis, work-related stress, mental health, propensity score weighting
    JEL: I10 J41 J28
    Date: 2018–07
  11. By: Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Velilla, Jorge (University of Zaragoza)
    Abstract: This paper analyzes the relationship between commuting time and sick-day absence of US workers. Using data from the Panel Study of Income Dynamics for the years 2011, 2013, and 2015, we find that a 1% increase in the daily commute of male workers is associated with an increase of around 0.018% in sick-day absences per year. In the case of women, the relationship is not significant. These results hold after controlling for individual fixed effects and socio-demographic characteristics, changes in jobs and places of residence, and differences in the self-reported health status of workers. By determining how commuting time is related to sickness absenteeism, we shed light on the relationship between commuting behavior and workers' health-related outcomes, measured by their labour supply.
    Keywords: commuting time, sickness absence, health-related outcomes, labour supply
    JEL: I10 J22 R2 R40
    Date: 2018–07
  12. By: José Azar; Xavier Vives
    Abstract: We develop a macroeconomic framework in which firms are large and have market power with respect to both products and labor. Each firm maximizes a share-weighted average of shareholder utilities, which makes the equilibrium independent of price normalization. In a one-sector economy, if returns to scale are non-increasing, then an increase in “effective” market concentration (which accounts for overlapping ownership) leads to declines in employment, real wages, and the labor share. Moreover, if the goal is to foster employment then (i) controlling common ownership and reducing concentration are complements and (ii) government jobs are a substitute for either policy. Yet when there are multiple sectors, due to an intersectoral pecuniary externality, an increase in common ownership can stimulate the economy when the elasticity of labor supply is high relative to the elasticity of substitution in product markets. We find that neither the monopolistically competitive limit of Dixit and Stiglitz nor the oligopolistic one of Neary (when firms become small relative to the economy) are attained unless there is incomplete portfolio diversification with no intra-industry common ownership.
    Keywords: ownership, portfolio diversification, labor share, market power, oligopsony, antitrust policy
    JEL: L13 L21 L41 G11 E60 D63
    Date: 2018
  13. By: Carlo Pietrobelli; Miguel Angel Santos (Center for International Development at Harvard University); Ricardo Hausmann (Center for International Development at Harvard University)
    Abstract: The literature on income gaps between Chiapas and the rest of Mexico revolves around individual factors, such as education and ethnicity. Yet, twenty years after the Zapatista rebellion, the schooling gap between Chiapas and the other Mexican entities has shrunk while the income gap has widened, and we find no evidence indicating that Chiapas indigenes are worse-off than their likes elsewhere in Mexico. We explore a different hypothesis. Based on census data, we calculate the economic complexity index, a measure of the knowledge agglomeration embedded in the economic activities at a municipal level in Mexico. Economic complexity explains a larger fraction of the income gap than any individual factor. Our results suggest that chiapanecos are not the problem, the problem is Chiapas. These results hold when we extend our analysis to Mexico’s thirty-one federal entities, suggesting that place-specific determinants that have been overlooked in both the literature and policy, have a key role in the determination of income gaps.
    Keywords: Chiapas, Mexico, economic complexity, development policy, public-private dialogue, internal migrations
    JEL: A11 B41 O10 O12 O20 R00
    Date: 2018–07
  14. By: David N.F. Bell; David G. Blanchflower
    Abstract: Large numbers of part-time workers around the world, both those who choose to be part-time and those who are there involuntarily and would prefer a full-time job report they want more hours. Full-timers who say they want to change their hours mostly say they want to reduce them. When recession hit in most countries the number of hours of those who said they wanted more hours, rose sharply and there was a fall in the number of hours that full-timers wanted their hours reduced by. Even though the unemployment rate has returned to its pre-recession levels in many advanced countries, underemployment in most has not. We produce estimates for a new, and better, underemployment rate for twenty-five European countries. In most underemployment remains elevated. We provide evidence for the UK and the US as well as some international evidence that underemployment rather than unemployment lowers pay in the years after the Great Recession. We also find evidence for the US that falls in the home ownership rate have helped to keep wage pressure in check. Underemployment replaces unemployment as the main influence on wages in the years since the Great Recession.
    JEL: J21 J3
    Date: 2018–08
  15. By: Kerwin Kofi Charles; Jonathan Guryan; Jessica Pan
    Abstract: We study how reported sexism in the population affects American women. Fixed-effects and TSLS estimates show that higher prevailing sexism where she was born (background sexism) and where she currently lives (residential sexism) both lower a woman's wages, labor force participation and ages of marriage and childbearing. We argue that background sexism affects outcomes through the influence of previously-encountered norms, and that estimated associations regarding specific percentiles and male versus female sexism suggest that residential sexism affects labor market outcomes through prejudice-based discrimination by men, and non-labor market outcomes through the influence of current norms of other women.
    JEL: J12 J13 J16 J22 J31 J7 Z10
    Date: 2018–08
  16. By: Fang, Tony (Memorial University of Newfoundland); Lin, Carl (Bucknell University); Tang, Xueli (Deakin University)
    Abstract: This paper examines the effects of working time reduction policy on labour supply (hours of work and whether an individual takes a second job) and household production, by exploiting the Chinese Two-Day Weekend Policy, which effectively reduced weekly working days from six to five in May 1995, as a natural experiment. We construct a theoretical model that predicts a decline in labour supply in both private and public sectors as work hours were reduced. In theory, the time spent on household production may increase or decrease or the time spent on the second job may increase or decrease depending on how much agents care about household production or the income from a second job. Using the China Health and Nutrition Survey, we adopt a difference-in-differences strategy to estimate the policy effects on work hours of wage earners in both public and private sectors. Relative to the control group deemed unaffected by the policy change, our estimates show that the Two-Day Weekend Policy significantly reduced the working hours of wage earners by 4 percent and the public sector by 5 percent while increasing the probability of having a second job by 3 percent and reducing the time spent on household work by 98-107 minutes per week. The results are robust to different specifications and a propensity score matching technique.
    Keywords: labour supply, time allocation, work hours, household production, second job, China
    JEL: J22 J28
    Date: 2018–07
  17. By: Gu, Grace; Malik, Samreen; Pozzoli, Dario (Department of Economics, Copenhagen Business School); Rocha, Vera (Department of Innovation, Copenhagen Business School)
    Abstract: We study how the skill distribution in an economy responds to changes in wage gaps induced by trade integration. Using administrative data for Denmark (1993-2012), we conduct a two-step empirical analysis. In the first step, we predict changes in wage gaps that are triggered by exogenous trade shocks. In the second step, we estimate the impact of such changes on the skill distribution. The main results for Denmark show that both the average and the standard deviation of skills increase as a result of trade integration. We then extend our analysis to Portugal, using its administrative data (1993-2012), to shed light on the potential role the labor market and education policy may play in establishing the feedback effect of trade on the skill distribution. Finally, we provide a theoretical intuition to rationalize both sets of results.
    Keywords: skill polarization; skill upgrading; trade integration and labor market frictions
    JEL: F16 J24
    Date: 2018–07–09
  18. By: Eliza Forsythe (University of Illinois at Urbana-Champaign)
    Abstract: The occupational structure of an establishment provides a description of its production process by detailing the distribution and relative intensity of tasks performed. In this paper, I investigate whether there are substantive differences in the occupational structures of low- and high-wage service sector establishments. I show that low-wage establishments organize production to use less labor in professional occupations compared to high-wage establishments operating in the same local-labor market and industry. In addition, low-wage establishments employ fewer individuals in information technology occupations, employ fewer managers, and have substantially wider supervisory spans of control. These results indicate that, despite operating in the same narrowly defined labor and product markets, low-wage establishments organize production to less intensively use labor in skilled occupations.
    Keywords: Occupations, Wage Inequality, Organization of Production, Service Industry
    JEL: J23 J31 L23
    Date: 2018–08
  19. By: Edward L. Glaeser; Ming Lu
    Abstract: This paper provides evidences of heterogeneous human-capital externality using CHIP 2002, 2007 and 2013 data from urban China. After instrumenting city-level education using the number of relocated university departments across cities in the 1950s, one year more city-level education increases individual hourly wage by 22.0 percent, more than twice the OLS estimate. Human-capital externality is found to be greater for all groups of urban residents in the instrumental variable estimation.
    JEL: E02 H23 J0 J24 P20 R11 R19 R39
    Date: 2018–08
  20. By: Jyldyz Djumalieva1; Cath Sleeman
    Abstract: In this work we offer an open and data-driven skills taxonomy, which is independent of ESCO and O*NET, two popular available taxonomies that are expert-derived. Since the taxonomy is created in an algorithmic way without expert elicitation, it can be quickly updated to reflect changes in labour demand and provide timely insights to support labour market decision-making. Our proposed taxonomy also captures links between skills, aggregated job titles, and the salaries mentioned in the millions of UK job adverts used in this analysis. To generate the taxonomy, we employ machine learning methods, such as word embeddings, network community detection algorithms and consensus clustering. We model skills as a graph with individual skills as vertices and their co-occurrences in job adverts as edges. The strength of the relationships between the skills is measured using both the frequency of actual co-occurrences of skills in the same advert as well as their shared context, based on a trained word embeddings model. Once skills are represented as a network, we hierarchically group them into clusters. To ensure the stability of the resulting clusters, we introduce bootstrapping and consensus clustering stages into the methodology. While we share initial results and describe the skill clusters, the main purpose of this paper is to outline the methodology for building the taxonomy.
    Keywords: Skills, Skills taxonomy, Labour demand, Online job adverts, Big data, Machine learning, Word embeddings
    JEL: C18 C38 J23 J24
    Date: 2018–08
  21. By: Eleanor Wiske Dillon (Amherst College); Jeffrey Smith (University of Wisconsin-Madison)
    Abstract: We consider the effects of student ability, college quality, and the interaction between the two on academic outcomes and earnings using data on two cohorts of college enrollees. Student ability and college quality strongly improve degree completion and earnings for all students. We find evidence of meaningful complementarity between student ability and college quality in degree completion at four years and long-term earnings, but not in degree completion at six years or STEM degree completion. This complementarity implies some tradeoff between equity and efficiency for policies that move lower ability students to higher quality colleges.
    Keywords: college education, college students, academic performance
    JEL: J24 D19 C78
    Date: 2018–08
  22. By: Simone Haeckl (Department of Economics, Vienna University of Economics and Business); Rupert Sausgruber (Department of Economics, Vienna University of Economics and Business); Jean-Robert Tyran (Department of Economics, University of Copenhagen)
    Abstract: We provide a new measure of work motivation and show that motivation shapes the effects of team incentives and observation by peers on performance. In particular, we measure motivation to work hard as the deviation from the money-maximizing benchmark in a real-effort experiment. While we find that average output increases in response to team incentives and observation, we find that highly motivated workers do not respond. The reason is that highly motivated workers already work hard and increasing effort even further is very costly to them.
    Keywords: real-effort experiment, cooperation, team, intrinsic motivation, labors
    JEL: C91 J33 L20
    Date: 2018–08–23
  23. By: Melanie Guldi; Amelia Hawkins; Jeffrey Hemmeter; Lucie Schmidt
    Abstract: Low birth weight infants born to mothers with low educational attainment have a double hurdle to overcome in the production of human capital. We examine whether income transfers in the form of Supplemental Security Income (SSI) payments for children with disabilities can help close the gap in outcomes due to this initial health and environmental disadvantage. We exploit a discontinuity in SSI eligibility at 1200 grams and use a regression discontinuity approach to produce causal estimates of the effects of SSI eligibility. We find that eligibility increases disability benefit participation, improves child outcomes and parenting behaviors, and shifts maternal labor supply from full to part time.
    JEL: H51 H53 I38 J21
    Date: 2018–08
  24. By: Borowiecki, Karol Jan; Graddy, Kathryn
    Abstract: In order to investigate the role of immigrant artists on the development of artistic clusters in U.S. cities, we use the US Census and American Community Survey, collected every 10 years since 1850. We identify artists and art teachers, authors, musicians and music teachers, actors and actresses, architects, and journalists, their geographical location and their status as a native or an immigrant. We look at the relative growth rate of the immigrant population in these occupations over a ten year period and how it affects the relative growth rate of native-born individuals in these artistic occupations. We find that cities that experienced immigrant artist inflows also see a greater inflow of native artists.
    Keywords: artistic occupations; artists; Immigration
    JEL: J4 J6 N3 N9 Z1
    Date: 2018–07
  25. By: Christian Lyhne Ibsen; Maarten Keune
    Abstract: This paper investigates different varieties of so called organised decentralisation of collective bargaining in Germany, the Netherlands and Denmark. Organised decentralisation occurs within the framework of sector agreements, which explicitly allow determination of terms and conditions at company level, and often set certain (minimum) level standards as well as procedure that have to be respected. German decentralisation is based on its dual-channel system and extensive use of opening clauses, which make workplace derogation from sector-level agreements possible. Dutch decentralisation is based on the dual-channel system and on framework agreements that allow company level bargaining as long as minimum stipulations are observed. Finally, Denmark combines a single-channel system with framework agreements setting minimum levels. Germany stands out as the least organised of the three. Opening and derogation clauses mean that terms and conditions in multi-employer agreements can be undercut. Vertical control over these derogations has suffered from the dual-channel representation in which works councils have a new role. The Netherlands exhibit some, very limited, elements of disorganisation and stable bargaining coverage. Decentralisation has mainly happened through framework agreements setting minimum levels or through the organised transfer of competencies to works councils. The Danish system leaves a lot of scope for local bargaining, the minimum levels are generally observed and bargaining coverage has not suffered. Based on these findings, we draw the conclusion that organised decentralisation requires articulation that preserves a regulatory function of multi-employer agreements. Preservation of multi-employer agreements in turn requires high bargaining coverage.
    JEL: J3 J52 J81
    Date: 2018–09–04

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