nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2021‒02‒08
25 papers chosen by
Joseph Marchand
University of Alberta

  1. Informed Choices: Gender Gaps in Career Advice By Yana Gallen; Melanie Wasserman
  2. Access to social protection for platform and other non-standard workers: A literature review By Kool, Tamara; Bordon, Giulio; Gassmann, Franziska
  3. The China Syndrome: A Cross-Country Evidence By Mina Taniguchi; Kozo Kiyota; Sawako Maruyama
  4. Home-based work, time endowments, and subjective well-being: Gender differences in the United Kingdom By Gimenez-Nadal, Jose Ignacio; Velilla, Jorge
  5. Labor Dynamics and Actual Telework Use during Covid-19: Skills, Occupations and Industries By Jean-Benoit Eyméoud; Nicolas Petrosky-Nadeau; Raül Santaeulàlia-Llopis; Etienne Wasmer
  6. Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance By Lawrence F. Katz; Jonathan Roth; Richard Hendra; Kelsey Schaberg
  7. Class, Social Mobility, and Voting: Evidence from Historical Voting Records By Torun Dewan; Christopher Kam; Jaakko Meriläinen; Janne Tukiaianen
  8. Beyond Windfall Gains: The Redistribution of Apprenticeship Costs and Vocational Education of Care Workers By Eric Schuss
  9. The Causal Impact of Depression on Cognitive Functioning: Evidence from Europe By Nafilyan, Vahé; Pabon, Mauricio Avendano; de Coulon, Augustin
  10. When Workers Travel: Nursing Supply During COVID-19 Surges By Joshua D. Gottlieb; Avi Zenilman
  11. Quality of life in a dynamic spatial model By Gabriel M. Ahlfeldt; Fabian Bald; Duncan Roth; Tobias Seidel
  12. Language Training and Refugees’ Integration By Jacob Nielsen Arendt; Iben Bolvig; Mette Foged; Linea Hasager; Giovanni Peri
  13. Place-based policies and spatial disparities across European cities By Maximilian v. Ehrlich; Henry G. Overman
  14. Unskilled labour before the Industrial Revolution By Paker, Meredith; Stephenson, Judy; Wallis, Patrick
  15. Child Care over the Business Cycle By Brown, Jessica H.; Herbst, Chris M.
  16. The Effects of Minimum Wage Increases in the Czech Republic By Jakub Grossmann
  17. Do Public Sector Workers Increase Their Outside Savings in Response to Pension Cuts? By Laura D. Quinby; Geoffrey Sanzenbacher
  18. The Stock Market, Labor-Income Risk and Unemployment in the US: Empirical Findings and Policy Implications By Kaan Celebi; Paul J.J. Welfens
  19. When transparency fails: Financial incentives for local banking agents in Indonesia By Erika Deserranno; Gianmarco León-Ciliotta; Firman Witoelar
  20. How can a college's admissions policies help produce future business leaders? By Kenjiro Hirata; Shinpei Sano; Katsuya Takii
  21. Trade and Informality in the Presence of Labor Market Frictions and Regulations By Dix-Carneiro, Rafael; Goldberg, Pinelopi Koujianou; Meghir, Costas; Ulyssea, Gabriel
  22. Growth, development, and structural change at the firm-level: The example of the PR China By Heinrich, Torsten; Yang, Jangho; Dai, Shuanping
  23. Does It Matter Where You Invest? The Impact of FDI on Domestic Job Creation and Destruction By Ni, Bin; Kato, Hayato; Liu, Yang
  24. Long-Term Effects of Equal Sharing: Evidence from Inheritance Rules for Land By Charlotte Bartels; Simon Jäger; Natalie Obergruber
  25. The Globalization of Postsecondary Education: The Role of International Students in the US Higher Education System By John Bound; Breno Braga; Gaurav Khanna; Sarah Turner

  1. By: Yana Gallen (University of Chicago and IZA); Melanie Wasserman (UCLA and CEPR)
    Abstract: This paper estimates gender differences in access to informal information regarding the labor market. We conduct a large-scale field experiment in which real college students seek information from 10,000 working professionals about various career paths, and we randomize whether a professional receives a message from a male or a female student. We focus the experimental design and analysis on two career attributes that prior research has shown to differentially affect the labor market choices of women: the extent to which a career accommodates work/life balance and has a competitive culture. When students ask broadly for information about a career, we find that female students receive substantially more information on work/life balance relative to male students. This gender difference persists when students disclose that they are concerned about work/life balance. In contrast, professionals mention workplace culture to male and female students at similar rates. After the study, female students are more dissuaded from their preferred career path than male students, and this difference is in part explained by professionals’ greater emphasis on work/life balance when responding to female students. Finally, we elicit students’ preferences for professionals and find that gender differences in information provision would remain if students contacted their most preferred professionals.
    Keywords: career information, gender, discrimination, correspondence study
    JEL: C93 J16 J24 J71
    Date: 2021–01
  2. By: Kool, Tamara (UNU-MERIT, Maastricht University); Bordon, Giulio (UNU-MERIT, Maastricht University); Gassmann, Franziska (UNU-MERIT, Maastricht University)
    Abstract: The need to extend social protection to include new forms of employment has progressively been recognised by policymakers in the last decade. Several countries introduced new schemes particularly for this group or made provisions to existing schemes to cover new forms of employment. In order to get a better overview of the different measures applied, this paper systematically reviews the existing literature with a focus on European countries and a subset of OECD countries, by focusing first on how non-standard, and in particular platform workers are classified and legally protected. Secondly, the paper reviews the extent to which platform and other non-standard workers have access to the different forms of social security provisions. While there is a clear conceptualisation of how platform work can be classified, the challenge lies in the legal construct underlying the work activities. Differing practices prevail between countries and only a few have thus far explicitly recognised platform work or crowd work as a form of employment. The lack of statutory and effective social protection coverage of platform workers can be addressed in various ways. These include adjusting existing schemes in terms of eligibility criteria, portability of transfers, incorporating digital innovation, and providing flexible security. Current shifts in policies have the potential to decrease socio-economic differences between different employment statuses. Ultimately, these shifts promote the transferability of individuals' social rights between employment statuses and ease the use of individual social protection accounts.
    Keywords: platform work, platform workers, social security, social protection, non-standard workers, workers rights
    JEL: H55 J20 O33
    Date: 2021–01–19
  3. By: Mina Taniguchi (Department of Economics and MGSE, University of Munich); Kozo Kiyota (Keio Economic Observatory, Keio University); Sawako Maruyama (Faculty of Economics, Kindai University)
    Abstract: While in many advanced countries the increasing import competition from China on employment is a major concern for policymakers and the general public, its impact of Chinese import competition could be different across countries, depending upon the volume and the composition of the products. This paper examines the impact of the China shock on employment in six advanced countries. We find that the import penetration of final goods from China has negative effects on manufacturing employment in these countries, whereas the import penetration of intermediate inputs from and the exports to China could have positive effects. Moreover, such positive effects could offset or even outweigh the negative effects in some countries. These results together suggest that a careful interpretation is needed when evaluating the external validity of the China shock that is obtained in one country.
    Keywords: The China shock, Cross-country comparisons, Final goods and intermediate inputs, Imports and exports
    JEL: F16 J21
    Date: 2021–01–07
  4. By: Gimenez-Nadal, Jose Ignacio; Velilla, Jorge
    Abstract: The confinement caused by Covid-19, and the associated promotion of telework to reduce exposure of workers to the disease, have clear implications for worker daily behaviors and well-being. This paper empirically explores the differences between commuters’ and teleworkers’ time allocations during their workdays, and the instant enjoyment experienced while doing such activities, with a focus on gender differences. Using detailed information from the UK Time Use Survey for the years 2014-2015, the results show a statistically significant cut in female and male paid work time associated with teleworking. On the other hand, teleworkers spend more time than commuters in unpaid work and leisure activities. The results also reveal a cut in women’s experienced enjoyment while doing telework, while male teleworkers enjoy their leisure more than do commuters. These results suggest that confinement policies promoting teleworking may impact not only worker time allocations, but also individual well-being, and such an impact may differ between men and women, leading to intrahousehold imbalances.
    Keywords: Gender difference; telework; time use; subjective well-being; UKTUS
    JEL: D1
    Date: 2020
  5. By: Jean-Benoit Eyméoud; Nicolas Petrosky-Nadeau; Raül Santaeulàlia-Llopis; Etienne Wasmer
    Abstract: We document the dynamics of labor-changes in employment and hours worked -and of actual telework use during the pandemic. We find that employment losses are unrelated to telework use starting in 2020-Q4. This is in stark contrast with the onset of the pandemic that disproportionately affected skills, occupations and industries with low telework use. Our findings are the results of two phenomena. First, labor is dynamically heterogeneous: employment of skill and occupation groups that are most affected by the initial Covid-19 shock recover quickly, catching up with the rest of the economy by October 2020. Second, the use of telework has homogeneously declined within skills, occupations and industries -by 40 percent on average- leaving the relative ranking of telework use across groups unaltered. Finally, there is substantial and persistent cross-industry heterogeneity in labor market outcomes one year into the pandemic that is unrelated to the use of telework.
    Keywords: labor, dynamics, telework, skills, Occupations, industries, COVID-19
    JEL: E01 E22 E25
    Date: 2021–01
  6. By: Lawrence F. Katz; Jonathan Roth; Richard Hendra; Kelsey Schaberg
    Abstract: This paper examines the evidence from randomized evaluations of sector-focused training programs that target low-wage workers and combine upfront screening, occupational and soft skills training, and wraparound services. The programs generate substantial and persistent earnings gains (11 to 40 percent) following training completion. Theoretical mechanisms for program impacts are explored for the WorkAdvance demonstration. Earnings gains are generated by getting participants into higher-wage jobs in higher-earning industries and occupations not just by raising employment. Training in transferable and certifiable skills (likely under-provided from poaching concerns) and reductions of employment barriers to high-wage sectors for non-traditional workers appear to play key roles.
    JEL: J24 J38
    Date: 2020–12
  7. By: Torun Dewan (Department of Government, London School of Economics and Political Science, Houghton Street, London WC2A 2AE, United Kingdom.); Christopher Kam (Department of Political Science, University of British Columbia, Vancouver Campus C425 1866 Main Mall, Vancouver, BC Canada V6T 1Z1); Jaakko Meriläinen (Centro de Investigación Económica and Department of Economics, ITAM, Av. Camino Santa Teresa 930, Col. Héroes de Padierna, Del. Magdalena Contreras, 10700 Ciudad de México, Mexico); Janne Tukiaianen (Department of Economics, Turku School of Economics, Rehtorinpellonkatu 3, FI-20014 University of Turku, Finland; VATT Institute for Economic Research, Arkadiankatu 7, FI-00101, Helsinki, Finland)
    Abstract: We explore the connection between social class, social mobility, and voting behavior in nineteenth-century England. To avoid pitfalls associated with survey or aggregate data on voting behavior, we use administrative longitudinal records preceding secret ballot on voters’ choices and occupation. These data reveal that the landed gentry, farm workers, non-skilled workers and white-collar workers voted, on average, more for the Conservatives, and petty bourgeoisie and skilled workers for the Liberals. The changes in voting behavior within individuals due to social mobility are immediate and mainly consistent with the same cleavage. Our interpretation is that voting was influenced by economic incentives.
    Keywords: Class-based voting, economic voting, social mobility, voting behavior, poll books
    JEL: D72 N33 N93
    Date: 2021–01
  8. By: Eric Schuss
    Abstract: We estimate the causal effect exerted by substantial redistribution of care worker apprenticeship costs on the training supply of care facilities. We exploit the fact that the underlying apprenticeship levy was introduced across the German federal states at different points in time. For ambulatory care, we find a robust positive effect on the probability of hiring new apprentices and on the number of new apprentices in the short and in the longer run. For inpatient care facilities, the probability of providing apprenticeship training is not affected, but positive effects emerge in respect of the number of new apprentices in the medium run.
    Keywords: Apprenticeship training, Care workers, Sectoral training levies, Labor supply shortage, Difference-in-differences
    JEL: J23 J24 I18 C21
    Date: 2021–01
  9. By: Nafilyan, Vahé (London School of Hygiene & Tropical Medicine); Pabon, Mauricio Avendano (King's College London); de Coulon, Augustin (King's College London)
    Abstract: Cognitive skills are important determinants of employment and productivity in older adults. Although cognitive decline is often linked to changes in mental health, the causal nature of the association between mental illness and cognitive performance is not established. In this paper, we analyse the effect of depressive symptoms on cognitive function. Based on longitudinal data for older adults of working age, we use an instrumental variable approach to show that worsening depressive symptoms lead to a decline in cognitive skills. The economic consequences of impaired cognition caused by depressive symptoms may be a large component of mental illness's social costs.
    Keywords: cognitive skills, mental health, longitudinal data
    JEL: J24 I10
    Date: 2021–01
  10. By: Joshua D. Gottlieb; Avi Zenilman
    Abstract: We study how short-term labor markets responded to an extraordinary demand shock during the COVID-19 pandemic. We use traveling nurse jobs - a market hospitals use to fill temporary staffing needs - to examine workers' willingness to move to places with larger demand shocks. We find a dramatic increase in market size during the pandemic, especially for those specialties central to COVID-19 care. The number of jobs increased far more than compensation, suggesting that labor supply to this fringe of the nursing market is quite elastic. To examine workers' willingness to move across different locations, we examine jobs in different locations on the same day, and find an even more elastic supply response. We show that part of this supply responsiveness comes from workers' willingness to travel longer distances for jobs when payment increases, suggesting that an integrated national market facilitates reallocating workers when demand surges. This implies that a simultaneous national demand spike might be harder for the market to accommodate rapidly.
    JEL: I11 J22 J30 J41 J61 R20
    Date: 2020–12
  11. By: Gabriel M. Ahlfeldt; Fabian Bald; Duncan Roth; Tobias Seidel
    Abstract: We develop a dynamic spatial model in which heterogeneous workers are imperfectly mobile and forward-looking and yet all structural fundamentals can be inverted without assuming that the economy is in a stationary spatial equilibrium. Exploiting this novel feature of the model, we show that the canonical spatial equilibrium framework understates spatial quality of-life differentials, the urban quality-of-life premium and the value of local non-marketed goods. Unlike the canonical spatial equilibrium framework, the model quantitatively accounts for local welfare effects that motivate many place-based policies seeking to improve quality of life.
    Keywords: Covid-19, dynamic, housing, migration, rents, pollution, productivity, spatial equilibrium, quality of life, wages, welfare, economic geography, productivity, wages, wellbeing
    JEL: J2 J3 R2 R3 R5
    Date: 2020–12
  12. By: Jacob Nielsen Arendt (The Rockwool Foundation’s Research Unit); Iben Bolvig (The Danish Center for Social Science Research (VIVE)); Mette Foged (University of Copenhagen); Linea Hasager (University of Copenhagen); Giovanni Peri (University of California, Davis)
    Abstract: We evaluate a Danish reform focused on improving Danish language training for those granted refugee status on or after January 1, 1999. Using a Regression Discontinuity Design we find a significant, permanent, positive effect on earnings. This effect emerged after completion of language classes and was accompanied by additional schooling and higher probability of working in communication-intensive jobs, suggesting that language training, rather than other minor aspects of the reform, produced it. We also find evidence of higher completion rates of lower secondary school and lower probability of crime for male children with both parents exposed to the reform.
    Keywords: Refugee Integration, Language Skills, Regression Discontinuity, Second Generation
    JEL: J60 J24 E64 I30
    Date: 2021–01
  13. By: Maximilian v. Ehrlich; Henry G. Overman
    Abstract: Spatial disparities in income levels and worklessness in the European Union are profound, persistent and may be widening. We describe disparities across metropolitan regions and discuss theories and empirical evidence that help us understand what causes these disparities. Increases in the productivity benefits of cities, the clustering of highly educated workers and increases in their wage premium all play a role. Europe has a long-standing tradition of using capital subsidies, enterprise zones, transport investments and other place-based policies to address these disparities. The evidence suggests these policies may have partially offset increasing disparities but are not sufficient to fully offset the economic forces at work.
    Keywords: place based policy, cities, European Union
    JEL: R11 R12 R13
    Date: 2020–10
  14. By: Paker, Meredith; Stephenson, Judy; Wallis, Patrick
    Abstract: The Industrial Revolution is seen as a major turning point in the management of labour, bringing about employment practices that gave structure and stability to the workforce. This paper provides evidence that employers were using hiring and retention strategies to stabilize the unskilled workforce at least a century before industrialization. We exploit the comprehensive employment records that survive from the rebuilding of St. Paul’s Cathedral in London (1672–1748) to reconstruct and analyse the employment history of over one thousand general building labourers, the benchmark category of unskilled workers for economic historians. We show that St. Paul’s was able to stabilize its workforce by establishing a core group of long-standing workers. Tenure was incentivized with more days of work each month on the site, priority in the queue for retention and rehiring in periods of low labour demand, and the opportunity to earn additional income as watchmen. These strategies reduced turnover and may have allowed the Cathedral to retain the most productive workers, reshaping our understanding of when modern employment practices emerged.
    Keywords: labour markets; construction; unskilled labour; churn; job creation; tenure; early modern; construction workers
    JEL: N33 N63 N83 J21 J22 J23
    Date: 2021–01
  15. By: Brown, Jessica H. (University of South Carolina); Herbst, Chris M. (Arizona State University)
    Abstract: We estimate the impact of macroeconomic conditions on the child care market. We find that the industry is substantially more exposed to the business cycle than other low-wage industries and responds more strongly to negative shocks than positive ones. Indeed, child care employment requires more time to recover than the rest of the economy. Although the reduction in supply may pose difficulties for parents, we find evidence that center quality is countercyclical. When unemployment rates are higher, child care workers have on average higher levels of education and experience, turnover rates are lower, and consumer reviews on are higher.
    Keywords: child care, early childhood education, business cycles
    JEL: J13 J21 E32 J24
    Date: 2021–01
  16. By: Jakub Grossmann
    Abstract: This paper analyzes employment effects of four minimum wage increases implemented in the Czech Republic during 2012-2017, which cumulatively increased the national minimum wage by 37 percent. We analyze outcomes at the level of firm-occupation-county-specific job cells and apply an intensity-treatment estimator similar to that of Machin et al. (2003). Our preferred specifications suggest that minimum wage increases led to higher wages for low-paid workers and did not have significant impacts on their employment.
    Keywords: minimum wage; intensity treatment; job cells; Czech Republic;
    JEL: J31 J38 J68
    Date: 2021–01
  17. By: Laura D. Quinby (Center for Retirement Research at Boston College); Geoffrey Sanzenbacher (Boston College)
    Abstract: As state and local policymakers enact benefit cuts to reduce the cost of their pension systems, the life-cycle model suggests that workers will adjust by saving more on their own. But, whether workers actually respond to pension characteristics remains an open question. After all, income received far in the future may not be salient to young workers deciding how much of their earnings to consume in the present. To answer the question, this paper links the Survey of Income and Program Participation to the Public Plans Database and explores whether state and local workers consider the amount of their pension savings, the funded status of their plan, or their Social Security coverage when deciding whether to participate in a supplemental defined contribution (DC) plan.
    Keywords: pension systems, benefits, savings
    JEL: J26 J32 J45
    Date: 2021–01–22
  18. By: Kaan Celebi (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: This study looks into the linkages between rates of return in stock markets - and stock market volatility - and labor income risk and the unemployment rate, respectively, in the United States. After considering basic theoretical links between labor income risk plus unemployment and stock market dynamics, an empirical analysis is conducted which follows two earlier papers by FAMA/FRENCH and FAMA/MACBETH in terms of their empirical approaches. The new approach presented here includes additional variables while interesting results regarding Granger causality analysis are also derived. We find that rate of return development is Granger causal for labor income risk and unemployment in the US. Labor income and unemployment significantly affect the stock market rates of return and the volatility of such returns. There are several key policy conclusions based on the empirical findings presented herein; the results indicate that stocks provide a rather good hedge against labor income declines. Crucial conclusions could be drawn in particular by the US Administration, in particular the new Biden Administration.
    Keywords: Labor income risk, stock markets, labor market, rates of return, volatility, unemployment rate, USA, economic policy reform
    JEL: D53 E24 E44 G10 J08 J20 J30
    Date: 2021–01
  19. By: Erika Deserranno; Gianmarco León-Ciliotta; Firman Witoelar
    Abstract: We study the effect of raising the level and the transparency of financial incentives offered to local agents for acquiring clients of a new banking product on take-up. We find that paying agents higher incentives increases take-up, but only when the incentives are unknown to prospective clients. When disclosed, higher incentives instead have no effect on take-up, despite greater agent effort. This is explained by the financial incentives conveying a negative signal about the reliability and trustworthiness of the product and its providers to potential clients. In contexts with limited information about a new technology, financial incentives can thus affect technology adoption through both a supply-side effect (more agent effort) as well as a demand-side signaling effect (change in demand perceptions). Organizations designing incentive schemes should therefore pay close attention to both the level and the transparency of such incentives.
    Keywords: financial incentives, pay transparency, technology adoption
    JEL: J31 D84 M52 O14 G28
    Date: 2021–01
  20. By: Kenjiro Hirata (Faculty of Economics, Kobe International University); Shinpei Sano (Graduate School of Economics, Kobe University); Katsuya Takii (Osaka School of International Public Policy, Osaka University)
    Abstract: This paper examines the long run impacts of expanding the range of subjects in higher education admission examinations using a historical event, the reform of Japanese entrance examinations in 1979. Our results show that degree programs that are forced to increase the number of subjects increases the probability of graduates being appointed onto the board of directors of publicly traded companies despite reducing the measured average intellectual ability of students in the program. This suggests that by broadening the range of subjects, colleges can select students who can master a wide range of knowledge and transform them into future business leaders.
    Keywords: Admission Policy, Business Leaders, Managerial Human Capital
    JEL: I23 J24 M12
    Date: 2021–03
  21. By: Dix-Carneiro, Rafael (Duke University); Goldberg, Pinelopi Koujianou (Yale University); Meghir, Costas (Yale University); Ulyssea, Gabriel (University College London)
    Abstract: We build an equilibrium model of a small open economy with labor market frictions and imperfectly enforced regulations. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data from Brazil, and use counterfactual simulations to understand how trade affects economic outcomes in the presence of informality. We show that: (1) Trade openness unambiguously decreases informality in the tradable sector, but has ambiguous effects on aggregate informality. (2) The productivity gains from trade are understated when the informal sector is omitted. (3) Trade openness results in large welfare gains even when informality is repressed. (4) Repressing informality increases productivity, but at the expense of employment and welfare. (5) The effects of trade on wage inequality are reversed when the informal sector is incorporated in the analysis. (6) The informal sector works as an "unemployment," but not a "welfare buffer" in the event of negative economic shocks.
    Keywords: regulations, trade, informality, labor market frictions
    JEL: F14 F16 J46 O17
    Date: 2021–01
  22. By: Heinrich, Torsten; Yang, Jangho; Dai, Shuanping
    Abstract: Understanding the microeconomic details of technological catch-up processes offers great potential for informing both innovation economics and development policy. We study the economic transition of the PR China from an agrarian country to a high-tech economy as one example for such a case. It is clear from past literature that rapidly rising productivity levels played a crucial role. However, the distribution of labor productivity in Chinese firms has not been comprehensively investigated and it remains an open question if this can be used to guide economic development. We analyze labor productivity and the dynamic change of labor productivity in firm-level data for the years 1998-2013 from the Chinese Industrial Enterprise Database. We demonstrate that both variables are conveniently modeled as Lévy alpha-stable distributions, provide parameter estimates and analyze dynamic changes to this distribution. We find that the productivity gains were not due to super-star firms, but due to a systematic shift of the entire distribution with otherwise mostly unchanged characteristics. We also found an emerging right-skew in the distribution of labor productivity change. While there are significant differences between the 31 provinces and autonomous regions of the P.R. China, we also show that there are systematic relations between micro-level and province-level variables. We conclude with some implications of these findings for development policy.
    Keywords: structural change; China; labor productivity; heavy-tailed distributions; microdata
    JEL: J24 L11 O10 O3 O53 R12
    Date: 2020–12–27
  23. By: Ni, Bin; Kato, Hayato; Liu, Yang
    Abstract: This study uses unique division-level data of Japanese firms to examine how foreign direct investment (FDI) affects domestic employment. Contrary to most previous studies focusing on the effect on net employment growth, we decompose it into gross job creation and gross job destruction. We find that FDI destination plays an important role: FDI to Asia increases job creation, while FDI to Europe or North America decreases it. A frictional search-and-matching model with heterogeneous jobs can explain the differential effects. The model provides additional predictions on job creation and destruction by job type, which are also empirically confirmed.
    Keywords: Outward FDI, firm-establishment-division-level data, multinational enterprises (MNEs), large-firm search model, high/low-skilled jobs
    JEL: F23 J21 J23
    Date: 2021–01–25
  24. By: Charlotte Bartels; Simon Jäger; Natalie Obergruber
    Abstract: What are the long-term economic effects of a more equal distribution of wealth? We exploit variation in historical inheritance rules for land traversing political, linguistic, geological, and religious borders in Germany. In some German areas, inherited land was to be shared or divided equally among children, while in others land was ruled to be indivisible. Using a geographic regression discontinuity design, we show that equal division of land led to a more equal distribution of land; other potential drivers of growth are smooth at the boundary and equal division areas were not historically more developed. Today, equal division areas feature higher average incomes and a right-shifted skill, income, and wealth distribution. Higher top incomes and top wealth in equal division areas coincide with higher education, and higher labor productivity. We show evidence consistent with the more even distribution of land leading to more innovative industrial by-employment during Germany’s transition from an agrarian to an industrial economy and, in the long-run, more entrepreneurship.
    JEL: E02 H24 J24 J43 N13 N14 N23 N24 N33 N34 N53 N54 N93 N94 O3 P42 R52
    Date: 2020–12
  25. By: John Bound; Breno Braga; Gaurav Khanna; Sarah Turner
    Abstract: In the four decades since 1980, US colleges and universities have seen the number of students from abroad quadruple. This rise in enrollment and degree attainment affects the global supply of highly educated workers, the flow of talent to the US labor market, and the financing of US higher education. Yet, the impacts are far from uniform, with significant differences evident by level of study and type of institution. The determinants of foreign flows to US colleges and universities reflect both changes in student demand from abroad and the variation in market circumstances of colleges and universities, with visa policies serving a mediating role. The consequences of these market mechanisms impact global talent development, the resources of colleges and universities, and labor markets in the United States and countries sending students.
    JEL: I2 J24 J6
    Date: 2021–01

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