nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2020‒02‒24
24 papers chosen by
Joseph Marchand
University of Alberta

  1. Maintaining high employment in Norway By Urban Sila; Philip Hemmings
  2. Do Cash Windfalls Affect Wages? Evidence from R&D Grants to Small Firms By Sabrina T. Howell; J. David Brown
  3. Minimum wage effects on informality across demographic groups in Colombia By Luis E. Arango; Luz A. Flórez; Laura D. Guerrero
  4. Selection into Employment and the Gender Wage Gap across the Distribution and over Time By Patricia Gallego Granados; Katharina Wrohlich
  5. Analysing Tax-Benefit Reforms in the Netherlands: Using Structural Models and Natural Experiments By de Boer, Henk-Wim; Jongen, Egbert L. W.
  6. Effects of the Minimum Wage on Child Health By George Wehby; Robert Kaestner; Wei Lyu; Dhaval M. Dave
  7. Public Employment Redux By Garibaldi, Pietro; Gomes, Pedro Maia; Sopraseuth, Thepthida
  8. Does the Added Worker Effect Matter? By Guner, Nezih; Kulikova, Yuliya; Valladares-Esteban, Arnau
  9. Educational mismatches, technological change and unemployment: evidence from secondary and tertiary educated workers By Esposito, Piero; Scicchitano, Sergio
  10. What Does a Job Candidate's Age Signal to Employers? By Van Borm, Hannah; Burn, Ian; Baert, Stijn
  11. Why Are There More Accidents on Mondays? Economic Incentives, Ergonomics or Externalities By Poland, Michelle; Sin, Isabelle; Stillman, Steven
  12. Harnessing the Power of Social Incentives to Curb Shirking in Teams By Brice Corgnet; Brian Gunia; Roberto Hernán González
  13. Influence in Economics and Aging By Jelnov, Pavel; Weiss, Yoram
  14. Hours and Wages By Alexander Bick; Adam Blandin; Richard Rogerson
  15. Better Integration in the Labor Market by Responding to Work Motives: Lessons from a Field Experiment among Israeli Ultra-Religious Women By Shoshana Neuman; Yael Goldfarb
  16. Selection and Absolute Advantage in Farming and Entrepreneurship By Alvarez-Cuadrado, Francisco; Amodio, Francesco; Poschke, Markus
  17. The Wage Premium of Communist Party Membership: Evidence from China By Wang, Hongjian; Nikolov, Plamen; Acker, Kevin
  18. Adolescent School Bullying Victimisation and Later Life Outcomes By Emma Gorman; Colm Harmon; Silvia Mendolia; Anita Staneva; Ian Walker
  19. The College Admissions Contribution to the Labor Market Beauty Premium By Ong, David; Xie, Man; Zhang, Junsen
  20. The Wage Penalty of Regional Accents By Jeffrey Grogger; Andreas Steinmayr; Joachim Winter
  21. A Noi! Income Inequality and Italian Fascism: Evidence from Labour and Top Income Shares By Giacomo Gabbuti
  22. You Get What You Pay For: Sources and Consequences of the Public Sector Premium in Albania and Sri Lanka By Ricardo Hausmann; Ljubica Nedelkoska; Sehar Noor
  23. Female Labor Force Participation in Turkey: A Synthetic Cohort (Panel) Analysis, 1988-2013 By Tunali, Insan; Kirdar, Murat G.; Dayioglu-Tayfur, Meltem
  24. Robots and the origin of their labour-saving impact By Montobbio, Fabio; Staccioli, Jacopo; Virgillito, Maria Enrica; Vivarelli, Marco

  1. By: Urban Sila; Philip Hemmings
    Abstract: Norway has a well-functioning labour market with high employment and a compressed wage distribution, contributing to low inequality. Norway nevertheless faces challenges from a trend decline in employment rates among the young and prime-age men. Furthermore, immigrants and people with disabilities have significantly poorer labour market outcomes than rest of the population. Norway still faces comparatively high sick-leave absence and the share of the working-age population on disability support remains large. Relatively high school dropout rates are also of concern, in particular as opportunities for workers with low educational attainment are limited in the Norwegian labour market. This paper first describes the labour market and identifies its main strengths and weaknesses and then goes on to discussing policy areas to boost employment and ensure quality jobs for the future. These include reforms to i) sick-leave compensation and disability support, ii) early retirement incentives in old-age pensions; iii) education and skills; and, iv) integration of immigrants.
    Keywords: ageing, disability, education, employment, immigrants, integration, labour market, Norway, pensions, retirement, sick leave, skills
    JEL: H53 H55 I2 J2 J3 J6
    Date: 2020–02–10
  2. By: Sabrina T. Howell; J. David Brown
    Abstract: This paper examines how employee earnings at small firms respond to a cash flow shock in the form of a government R&D grant. We use ranking data on applicant firms, which we link to IRS W2 earnings and other U.S. Census Bureau datasets. In a regression discontinuity design, we find that the grant increases average earnings with a rent-sharing elasticity of 0.07 (0.21) at the employee (firm) level. The beneficiaries are incumbent employees who were present at the firm before the award. Among incumbent employees, the effect increases with worker tenure. The grant also leads to higher employment and revenue, but productivity growth cannot fully explain the immediate effect on earnings. Instead, the data and a grantee survey are consistent with a backloaded wage contract channel, in which employees of financially constrained firms initially accept relatively low wages and are paid more when cash is available.
    JEL: G32 G35 J31 J41
    Date: 2020–01
  3. By: Luis E. Arango (Banco de la República de Colombia); Luz A. Flórez (Banco de la República de Colombia); Laura D. Guerrero
    Abstract: We present evidence of the minimum wage effects on labour informality rates in Colombia. Our identification strategy consists of dividing the working population into sixteen groups depending on their age, gender and educational level to observe how the variations in the minimum wage with respect to the 70th percentile of the distribution of salaries corresponding to the demographic group of each individual, affects the probability of having an informal occupation. The results suggest that the higher the value of the minimum wage ratio the higher will be the probability of being informal. An increase of one percentage point (pp) in the ratio of the minimum wage increases the probability of having an informal job by 0.21 pp. This effect may be greater in cities with higher informality rates and consequently with lower labour productivity of less educated workers. Our results also present evidence of non-linear effects, which suggests that workers whose labour productivity is less than the minimum wage are more likely to have informal jobs. **** RESUMEN: En este documento presentamos evidencia de las implicaciones del salario mínimo en la informalidad laboral. Nuestra estrategia de identificación consiste en dividir la población trabajadora en dieciséis grupos dependiendo de su edad, género y nivel educativo para observar cómo las variaciones del salario mínimo con respecto al percentil 70 de la distribución de salarios correspondiente al grupo demográfico de cada individuo, afecta su probabilidad de tener una ocupación informal. Los resultados sugieren que a mayor valor de la razón del salario mínimo más alta será la probabilidad de ser informal. Un incremento de un punto porcentual (pp) en la razón del salario mínimo incrementa la probabilidad de tener un empleo informal en 0.21 pp. Este efecto puede ser mayor en ciudades con mayor tasa de informalidad y en consecuencia con menor productividad laboral de aquellos trabajadores menos educados. Finalmente, nuestros resultados presentan evidencia de efectos no lineales, lo cual sugiere que aquellos trabajadores cuya productividad laboral es muy baja con respecto al salario mínimo, tienen una mayor probabilidad de tener trabajos informales. Classification-JEL: J21, J30, J46, O17
    Keywords: minimum wage, labour informality, heterogeneity, salario mínimo, informalidad laboral, heterogeneidad
    Date: 2020–02
  4. By: Patricia Gallego Granados; Katharina Wrohlich
    Abstract: Using quantile regression methods, this paper analyses the gender wage gap across the wage distribution and over time (1990-2014), while controlling for changing sample selection into full-time employment. Our findings show that the selection-corrected gender wage gap is much larger than the one observed in the data, which is mainly due to large positive selection of women into full-time employment. However, we show that selection-corrected wages of male and female workers at the lower half of the distribution have moderately converged over time. The reason for this development have been changes in the composition of the male full-time employment force over time, which in spite of the rather constant male full-time employment rate, have given place to a small but rising selection bias in male observed wages. In the upper half of the wage distribution, however, neither the observed nor the selection-corrected gender wage gap has narrowed over time.
    Keywords: gender wage gap, quantile regression, selection into employment
    JEL: J31 J21
    Date: 2020
  5. By: de Boer, Henk-Wim (CPB Netherlands Bureau for Economic Policy Analysis); Jongen, Egbert L. W. (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: We combine the strengths of structural models and natural experiments in the analysis of tax-benefit reforms in the Netherlands. First we estimate structural discrete-choice models for labour supply. Next we simulate key past reforms and compare the predictions of the structural model with the outcomes of quasi-experimental studies. The structural model predicts the treatment effects well. The structural model then allows us to conduct counterfactual policy analysis. Policies targeted at working mothers with young children generate the largest labour supply responses, but generate little additional government revenue. Introducing a at tax, basic income or joint taxation is not effective.
    Keywords: tax-benefit reform, natural experiments, structural models, Netherlands
    JEL: C25 C52 H31 J22
    Date: 2020–01
  6. By: George Wehby; Robert Kaestner; Wei Lyu; Dhaval M. Dave
    Abstract: Effects of the minimum wage on labor market outcomes have been extensively debated and analyzed. Less studied, however, are other consequences of the minimum wage that stem from changes in a household’s income and labor supply. We examine the effects of the minimum wage on child health. We employ data from the National Survey of Children’s Health in conjunction with a difference-in-differences research design. We estimate effects of changes in minimum wage throughout childhood. We find evidence that an increase in the minimum wage throughout childhood is associated with a large improvement in child health. A particularly interesting finding is that much of the benefits of a higher minimum wage are associated with the period between birth and aged 5.
    JEL: I1 I14 I28 J20 J3
    Date: 2020–01
  7. By: Garibaldi, Pietro (University of Turin); Gomes, Pedro Maia (Birkbeck, University of London); Sopraseuth, Thepthida (University of Cergy-Pontoise)
    Abstract: The public sector hires disproportionately more educated workers. Using US microdata, we show that the education bias also holds within industries and in two thirds of 3-digit occupations. To rationalize this finding, we propose a model of private and public employment based on two features. First, alongside a perfectly competitive private sector, a cost-minimizing government acts with a wage schedule that does not equate supply and demand. Second, our economy features heterogeneity across individuals and jobs, and a simple sorting mechanism that generates underemployment – educated workers performing unskilled jobs. The equilibrium model is parsimonious and is calibrated to match key moments of the US public and private sectors. We find that the public-sector wage differential and excess underemployment account for 15 percent of the education bias, with the remaining accounted for by technology. In a counterintuitive fashion, we find that more wage compression in the public sector raises inequality in the private sector. A 1 percent increase in unskilled public wages raises skilled private wages by 0.07 percent and lowers unskilled private wages by 0.06 percent.
    Keywords: public-sector employment, public-sector wages, underemployment, education
    JEL: E24 J20 J24 J31 J45
    Date: 2019–12
  8. By: Guner, Nezih (CEMFI, Madrid); Kulikova, Yuliya (Banco de España); Valladares-Esteban, Arnau (University of St. Gallen)
    Abstract: The added worker effect (AWE) measures the entry of individuals into the labor force due to their partners' job loss. We propose a new method to calculate the AWE, which allows us to estimate its effect on any labor market outcome. We show that the AWE reduces the fraction of households with two non-employed members. The AWE also accounts for why women's employment is less cyclical and more symmetric compared to men. In recessions, while some women lose their employment, others enter the labor market and find jobs. This keeps the female employment relatively stable.
    Keywords: household labor supply, intra-household insurance, female employment, cyclicality, skewness
    JEL: D1 E32 J21 J22
    Date: 2020–01
  9. By: Esposito, Piero; Scicchitano, Sergio
    Abstract: In this article, we investigate the role of several types of educational mismatch in explaining labour market transitions of workers with secondary and higher education. We focus on transitions from employment to unemployment and on job changes, to assess whether mismatch is a temporary or a permanent phenomenon. In the first case, as suggested by matching models, mismatch will be eliminated through job-to-job transitions. In the second case, it might be permanent and caused by employment discontinuity and deskilling processes. By using information from the Italian Survey of Professions (ICP) and the Survey on Labour Participation and Unemployment (PLUS), we calculate three measures of vertical mismatch. This allows comparing the outcomes from self-reported and revealed match measures in order to assess the robustness of the results. In addition, we use a measure of horizontal mismatch and evaluated the effect of Routine Bias Technical change (RBTC) in terms of unemployment risk, through a Routine Task Index (RTI) calculated on Italian data. Results indicate that mismatched workers are at risk of long-term unemployment. More specifically, among workers with higher education, the risk is due to mismatches in the field of studies whereas for secondary educated workers, over-education is the main cause of unemployment risk. The effect of the RTI is often not significant. This adds evidence to the problem of skill gap in Italy, as educational choices are not aligned to market needs. In this respect, both demand side and supply side policies are needed to allow firms to better use this human capital.
    Keywords: higher education,over-education,educational mismatch,routine bias technical change,unemployment,Italy
    JEL: D91 J24 J64 J82
    Date: 2020
  10. By: Van Borm, Hannah (Ghent University); Burn, Ian (University of Liverpool); Baert, Stijn (Ghent University)
    Abstract: Research has shown that hiring discrimination is a barrier for older job candidates in many OECD countries. However, little research has delved into why older job candidates are discriminated against. Therefore, we have conducted an online scenario experiment involving recruiters to empirically investigate 15 potential stigma related to older age drawn from a systematic review of the literature. We found that older age particularly signals to recruiters that the applicant has lower technological skill, flexibility, and trainability levels. Together, these perceptions explain about 41% of the effect of age on the probability of being invited to a job interview. In addition, we found that the negative association between age and invitation probability is smaller when recruiters work for firms with a higher percentage of older employees.
    Keywords: hiring, statistical discrimination, age, stereotypes
    JEL: J71 J14 J24 J23
    Date: 2019–12
  11. By: Poland, Michelle (University of Otago); Sin, Isabelle (Motu Economic and Public Policy Research Trust); Stillman, Steven (Free University of Bozen/Bolzano)
    Abstract: Research consistently finds more workplace injuries occur on Mondays than on other weekdays. One hypothesis is that workers fraudulently claim that off-the-job weekend sprains and strains occurred at work on the Monday in order to receive workers' compensation. We test this using data from New Zealand, where compensation is virtually identical whether or not an injury occurs at work. We still find that work claims, especially sprains and strains, occur disproportionately on Mondays, although less than in other jurisdictions. This suggests fraudulent claims in other countries are just one part of the story. Furthermore, we find work claims remain high on Tuesdays, and that workers' sprains and strains that occur off-the-job also disproportionately fall on Mondays. Sprains and strains treated at hospitals, which are not closed over the weekend, are also elevated on Mondays. However, Monday lost-time injuries are less severe than injuries on other days. Our findings are consistent with a physiological mechanism contributing to elevated Monday injury claims in New Zealand, but do not suggest doctors' offices being closed over the weekend, ergonomic explanations, or work being riskier on Mondays play important roles.
    Keywords: monday effect, workers compensation, accidents, incentives
    JEL: I18 I13 J38
    Date: 2019–12
  12. By: Brice Corgnet (Univ Lyon, emlyon business school, GATE UMR 5824, F-69130 Ecully, France); Brian Gunia (Carey Business School, Johns Hopkins University, 100 International Drive Baltimore, MD 21202, USA); Roberto Hernán González (CEREN EA 7477, Burgundy School of Business, Université Bourgogne Franche-Comté, Dijon, France)
    Abstract: We study several solutions to shirking in teams that trigger social incentives by reshaping the workplace social context. Using an experimental design, we manipulate social pressure at work by varying the type of workplace monitoring and the extent to which employees engage in social interaction. This design allows us to assess the effectiveness as well as the popularity of each solution. Despite similar effectiveness in boosting productivity across solutions, only organizational systems involving social interaction (via chat) were at least as popular as a baseline treatment. This suggests that any solution based on promoting social interaction is more likely to be embraced by workers than monitoring systems alone.
    Keywords: Social Incentives, Social Pressure, Moral Hazard in Teams, Laboratory Experiments
    JEL: C92 D23 D91 M54
    Date: 2020
  13. By: Jelnov, Pavel (Leibniz University of Hannover); Weiss, Yoram (Tel Aviv University)
    Abstract: We study the relationship between age and influence in a closed group of 1,000 leading economists. We consider, as a measurement of influence, monthly RePEc rankings. We find that the rankings are not related to age but are related to experience. The optimal level of experience is 30 years from Ph.D. graduation. Additionally, we observe no robust difference in the effect of age and experience between Nobel laureates and leading non-Nobelists. Finally, we find that labor economists enjoy an especially steep improvement in the rankings before they reach the peak; however, the rankings also peak relatively early in their careers.
    Keywords: aging, citations, influence, Nobel, research productivity
    JEL: J24
    Date: 2020–01
  14. By: Alexander Bick; Adam Blandin; Richard Rogerson
    Abstract: We develop and estimate a static model of labor supply that can account for two robust features of the cross-sectional distribution of usual weekly hours and hourly wages. First, usual weekly hours are heavily concentrated around 40 hours, while at the same time a substantial share of total hours come from individuals who work more than 50 hours. Second, mean hourly wages are non-monotonic across the usual hours distribution, with a peak for those working 50 hours. The novel feature of the model is that earnings are non-linear in hours and the nature of the nonlinearity varies over the hours distribution. We estimate the model on a sample of older males for whom human capital considerations are plausibly not of first order importance. Our estimates imply that an individual who chooses to work either less than 40 hours or more than 40 hours faces a wage penalty. As a consequence, individuals working typically 40 hours are not very responsive to variation in productivity. This has significant implications for the role of labor supply as a mechanism for self-insurance in a standard heterogeneous agent-incomplete markets model and for strategies designed to estimate the intertemporal elasticity of substitution.
    JEL: E24 J22
    Date: 2020–01
  15. By: Shoshana Neuman; Yael Goldfarb
    Abstract: Low employability among specific populations (e.g., religious/traditional women, the elderly, disabled workers, immigrants) has unfavorable consequences on the: unemployed individual, society, and the state economy. The latter include: poverty, a heavy toll on welfare budgets, diminished growth, and an increase in the "dependency ratio". We suggest a rather novel policy (borrowed from the field of Career Psychology) that could lead to successful integration into the labor market of low-employability populations: the design of tailor-made training programs that respond to work motives; coupled with a working environment that caters to special needs/ restrictions; and complemented with counseling and monitoring. The suggested strategy was illustrated and investigated using a case study of Israeli ultra-religious women, who exhibit lower employment rates than other Israeli women. The motives behind their occupational choices were explored based on data collected by a field experiment. Factor Analysis was then employed to sort out the motives behind their occupational choices, and regression analysis was used to associate job satisfaction with work motivation. Policy implications were suggested based on the findings. There is already some evidence on the successful outcomes of the proposed strategy.
    Keywords: low-employability; ultra-Orthodox/religious (Haredi); Israel; occupation; motives; job satisfaction; old-age dependency-ratio
    JEL: D13 D91 I38 J08 J24 Z12
    Date: 2020–02–13
  16. By: Alvarez-Cuadrado, Francisco (McGill University); Amodio, Francesco (McGill University); Poschke, Markus (McGill University)
    Abstract: Output per worker is lower in poor countries than in rich countries, and relatively more so in the agricultural sector. Sorting of heterogeneous workers can contribute to explain this fact if comparative and absolute advantage are aligned in agriculture, implying that average productivity in agriculture increases as the agricultural employment share decreases. We empirically investigate the correlation between comparative and absolute advantage using representative household-level panel data from four Sub-Saharan African countries. Around one third of households engage in both agriculture and non-farming entrepreneurship. We find that more productive farming households are more likely to also engage in non-farm entrepreneurship, allocate more hours to it if they do, and are more likely to enter it if not yet active. All three pieces of evidence imply that comparative and absolute advantage are negatively correlated – misaligned – in agriculture, casting doubt on the importance of selection as a root cause of the agricultural productivity gap.
    Keywords: agricultural productivity gap, selection, entrepreneurship, Africa
    JEL: J24 J31 J43 L26 O11 O13 O40
    Date: 2019–12
  17. By: Wang, Hongjian (State University of New York); Nikolov, Plamen (State University of New York); Acker, Kevin (The Johns Hopkins University School of Advanced International Studies and The Hopkins-Nanjing Center)
    Abstract: Social status and political connections may confer large economic benefits on an individual. Previous studies focused on China have examined the relationship between Communist Party membership and earnings and found a positive correlation. However, the correlation could be partly or totally spurious. Using data from three surveys spanning three decades, we estimate the causal effect of Chinese Communist Party membership on monthly earnings in China. We find that, on average, membership in the Communist Party of China increases monthly earnings and the wage premium has grown in recent years. We explore potential causes and discover evidence that improvements in social networks and social rank, acquisition of job-related qualifications, and greater life satisfaction likely play important roles in increased earnings.
    Keywords: wage premium, political status, China, Communist Party
    JEL: D31 J31 P2
    Date: 2019–12
  18. By: Emma Gorman (University of Westminster & IZA, Bonn); Colm Harmon (University of Edinburgh); Silvia Mendolia (University of Edinburgh & IZA, Bonn); Anita Staneva (Griffith University); Ian Walker (Lancaster University Management School & IZA, Bonn)
    Abstract: We analyse the long-term effects of experiencing bullying victimisation in junior high school, using rich data on a large cohort of English adolescents. The data contain self-reports of five types of bullying and their frequency, for three waves, when the pupils were aged 13 to 16 years. We assess the effects of bullying victimisation on short- and long-term outcomes, including educational achievements, earnings, and mental ill-health at age 25 years using a variety of estimation strategies -- least squares, matching, and inverse probability weighting. We also consider attenuation associated with relying on self-reports. The detailed longitudinal data, linked to administrative data, allows us to control for many of the determinants of child outcomes that have been explored in previous literature, together with comprehensive sensitivity analyses, to assess the potential role of unobserved variables. The pattern of results strongly suggests that there are quantitatively important long run effects on victims -- stronger than correlation analysis would otherwise suggest. In particular, we find that both type of bullying and its intensity matters for long run outcomes such as obtaining a degree, income, and mental health.
    Keywords: bullying, education outcomes, long term outcomes
    JEL: I24 I26 J24
    Date: 2020–02
  19. By: Ong, David; Xie, Man; Zhang, Junsen
    Abstract: Beautiful people earn more. Surprisingly, this premium is larger for men than for women and is independent of the degree of customer contact. Overlooked is the possibility that beauty can influence college admissions. We explore this academic contributor to the labor market beauty earnings premium by sampling 1,800 social media profiles of students from universities ranked from 1 to 200 in China and the US. Chinese universities use only standardized test scores for admissions. In contrast, US universities use also grades and extracurricular activities, which are not necessarily beauty-blind. Consistent with beauty-blind admissions, student’s beauty is uncorrelated with the rank of their college in China. In the US, White men from higher ranked colleges are better-looking. As expected, the correlation is insignificant for White men who attended tech colleges and is highest for those who attended private colleges. We also find that White women and minorities of either gender are not better-looking at higher ranked colleges. Our evidence indicates a college admissions contribution to the labor market beauty premium for US White men, but not for students in China of either gender, White women, or minorities of either gender in the US, or for White men who attended technology colleges.
    Keywords: beauty premium, labor market discrimination, college admissions, college athletics
    JEL: I24 I26 J7
    Date: 2020–01–31
  20. By: Jeffrey Grogger; Andreas Steinmayr; Joachim Winter
    Abstract: Previous work has documented that speaking one’s native language with an accent distinct from the mainstream is associated with lower wages. In this study, we seek to estimate the causal effect of speaking with a distinctive regional accent, disentangling the effect of the accent from that of omitted variables. We collected data on workers’ speech in Germany, a country with wide variation in regional dialects. We use a variety of strategies in estimation, including an instrumental variables strategy in which the instruments are based on research findings from the linguistics of accent acquisition. All of our estimators show that speaking with a distinctive regional accent reduces wages by an amount that is comparable to the gender wage gap. We also find that workers with distinctive regional accents tend to sort away from occupations that demand high levels of face-to-face contact, consistent with various occupational sorting models.
    JEL: J24 J71
    Date: 2020–01
  21. By: Giacomo Gabbuti
    Abstract: A century after Mussolini’s seizure of power, distributive trends during Interwar Italy are only partially known. This paper presents new evidence on inequality, contributing to the ‘classic’ debate on Fascism’s origins and legacy. Labour shares fell dramatically during the Great War, quickly recovered by 1922, and experienced a steady decline during Fascism, reaching a secular minimum in early 1940s. A newly assembled database of fiscal tabulations shows increasing concentration at the top between 1925 and 1936. These findings testify the fundamentally regressive nature of the Fascist regime, revealing significant discontinuity in Italy’s long-run inequality trend.
    JEL: B12 D63 J31 N14 N34
    Date: 2020–02–18
  22. By: Ricardo Hausmann (Center for International Development at Harvard University); Ljubica Nedelkoska (Center for International Development at Harvard University); Sehar Noor
    Abstract: We study the factors behind the public sector premium in Albania and Sri Lanka, the group heterogeneity in the premium, the sources of public sector wage compression, and the impact of this compression on the way individuals self-select between the public and the private sector. Similar to other countries, the public sectors in Albania and Sri Lanka pay higher wages than the private sector, for all but the most valued employees. While half of the premium of Sri Lanka and two-thirds of it in Albania are explained by differences in the occupation-education-experience mix between the sectors, and the level of private sector informality, the unexplained part of the premium is significant enough to affect the preferences of working in the public sector for different groups. We show that the compressed distributions of public sector wages and benefits create incentives for positive sorting into the public sector among most employees, and negative sorting among the most productive ones.
    Keywords: public sector premium, self-selection, Albania, Sri Lanka, wage compression
    JEL: J31 J32 J38
    Date: 2020–02
  23. By: Tunali, Insan (Koc University); Kirdar, Murat G. (Bogazici University); Dayioglu-Tayfur, Meltem (Middle East Technical University)
    Abstract: We study the aggregate labor force participation behavior of women over a 25-year period in Turkey using a synthetic panel approach. In our decomposition of age, year, and cohort effects, we use three APC models that have received close scrutiny of the demography community. We rely on predictions from just-identified models that render different methods comparable. The exercise is carried out by rural/urban status and by education to tease out some key differences in behavior, and to test hypotheses about the course of participation. Our comparative methodology yields remarkably consistent profiles for most subsamples, but not all. Notably all methods reveal an M-shaped age profile attributable to child-bearing related interruptions in rural areas and for low-educated women in urban areas. We also find that younger cohorts among the least-educated women are more likely to participate, contrary to the belief that culture stands in the way. This implies that the recent rise in the aggregate participation rates is not only due to a composition effect arising from increasing education levels. We also show that Turkey has reached the turning point of the U-shaped pattern in female participation. In addition, we dwell on methodological issues and offer explanations for the fragility of the methods. We establish that evolution of the linear trend present in the crosssection age profiles is responsible for the apparent differences in the findings.
    Keywords: female labor force participation, U-hypothesis, synthetic birth cohort analysis, age-participation profiles, cohort effects, M-shaped profile, culture
    JEL: J21 C18
    Date: 2019–12
  24. By: Montobbio, Fabio; Staccioli, Jacopo; Virgillito, Maria Enrica; Vivarelli, Marco
    Abstract: This paper investigates the presence of explicit labour-saving heuristics within robotic patents. It analyses innovative actors engaged in robotic technology and their economic environment (identity, location, industry), and identifies the technological fields particularly exposed to labour-saving innovations. It exploits advanced natural language processing and probabilistic topic modelling techniques on the universe of patent applications at the USPTO between 2009 and 2018, matched with ORBIS (Bureau van Dijk) firm-level dataset. The results show that labour-saving patent holders comprise not only robots producers, but also adopters. Consequently, labour-saving robotic patents appear along the entire supply chain. The paper shows that labour-saving innovations challenge manual activities (e.g. in the logistics sector), activities entailing social intelligence (e.g. in the healthcare sector) and cognitive skills (e.g. learning and predicting).
    Keywords: Robotic Patents,Labour-Saving Technology,Search Heuristics,Probabilistic Topic Models
    JEL: O33 J24 C38
    Date: 2020

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