nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2021‒04‒26
28 papers chosen by
Joseph Marchand
University of Alberta

  1. The Impact of Paid Family Leave on Employers: Evidence from New York By Ann P. Bartel; Maya Rossin-Slater; Christopher J. Ruhm; Meredith Slopen; Jane Waldfogel
  2. The Distributional Consequences of Social Distancing on Poverty and Labour Income Inequality in Latin America and the Caribbean By Delaporte, Isaure; Escobar, Julia; Peña, Werner
  3. Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform By Galassi, Gabriela
  4. “The Impact of Combining Work with Study on the Labour Market Performance of Graduates: the Joint Role of Work Intensity and Job-Field Match” By Antonio Di Paolo; Alessia Matano
  5. The Alpha Beta Gamma of the Labor Market By Victoria Gregory; Guido Menzio; David G. Wiczer
  6. Gender, Selection into Employment, and the Wage Impact of Immigration By Borjas, George J.; Edo, Anthony
  7. Do You Really Want to Share Everything? The Wellbeing of Work-Linked Couples By Juliane Hennecke; Clemens Hetschko
  8. The Changing Distribution of the Male Ethnic Wage Gap in Great Britain By Clark, Ken; Nolan, Steve
  9. Do temperature shocks affect non-agriculture wages in Brazil? Evidence from individual-level panel data By Jaqueline Oliveira; Bruno Palialol, Paula Pereda
  10. Technology and the Task Content of Jobs across the Development Spectrum By Julieta Caunedo; Elisa Keller; Yongseok Shin
  11. Occupational Mobility of Routine Workers By Maczulskij, Terhi
  12. The Dynamics of Working Hours and Wages Under Implicit Contracts By Guerrazzi, Marco; Giribone, Pier Giuseppe
  13. The importance of capital in losing the entrepreneurial gender gap: a longitudinal study of lottery wins By Sarah Flèche; Anthony Lepinteur; Nattavudh Powdthavee
  14. The Impact of Robot Adoption on Global Sourcing By Cilekoglu, Akin A.; Moreno, Rosina; Ramos, Raul
  15. How the Earnings Growth of U.S. Immigrants Was Underestimated By Duleep, Harriet; Liu, Xingfei; Regets, Mark
  16. Who Does the Earned Income Tax Credit Benefit? A Monopsony View By Aida Farmand; Owen Davis
  17. Labour Regulation Shift and Labour Intensive Manufacturing By Nurina Merdikawati; Sarah Xue Dong
  18. Labor Market Effects of the Oxycodone-Heroin Epidemic By ; ; Daniel I. Garcia; Alison E. Weingarden
  19. Diversity and Team Performance in a Kenyan Organization By Benjamin Marx; Vincent Pons; Tavneet Suri
  20. Can Older Workers Be Retrained? Canadian Evidence from Worker-Firm Linked Data By Fang, Tony; Gunderson, Morley; Lee, Byron
  21. Optimal Taxation and Market Power By Jan Eeckhout; Chunyang Fu; Wenjian Li; Xi Weng
  22. The effect of labour demand on women’s intra-household decision power: Evidence from Indonesia By Sarah Xue Dong
  23. Decent Work and The Quality of Work and Employment By Green, Francis
  24. When transparency fails: Financial incentives for local banking agents in Indonesia By Erika Deserranno; Gianmarco León-Ciliotta; Firman Witoelar
  25. The Supply of Hours Worked and Fluctuations between Growth Regimes By Ka-Kit Iong; Andreas Irmen
  26. Discrete Choice Models for Estimating Labor Supply: Working Paper 2021-04 By Naveen Singhal
  27. Parental Skills, Assortative Mating, and the Incidence of Autism Spectrum Disorder By N. Meltem Daysal; Todd E. Elder; Judith K. Hellerstein; Scott A. Imberman; Chiara Orsini
  28. Adoption of digital technologies: Insights from a global survey initiative By James Fudurich; Lena Suchanek; Lise Pichette

  1. By: Ann P. Bartel; Maya Rossin-Slater; Christopher J. Ruhm; Meredith Slopen; Jane Waldfogel
    Abstract: We designed and fielded a survey of New York and Pennsylvania firms to study the impacts of New York's 2018 Paid Family Leave policy on employer outcomes. We match each NY firm to a comparable PA firm and use difference-in-difference models to analyze within-match-pair changes in outcomes. We find that PFL leads to an improvement in employers' rating of their ease of handling long employee absences, concentrated in the first policy year and among firms with 50-99 employees. We also find an increase in employee leave-taking in the second policy year, driven by smaller firms.
    JEL: I38 J21 J22 J23 J32 J38
    Date: 2021–04
  2. By: Delaporte, Isaure; Escobar, Julia; Peña, Werner
    Abstract: This paper estimates the potential distributional consequences of the first phase of the COVID-19 lockdowns on poverty and labour income inequality in 20 Latin American and Caribbean (LAC) countries. We estimate the share of individuals that are potentially able to remain active under the lockdown by taking into account individuals' teleworking capacity but also whether their occupation is affected by legal workplace closures or mobility restrictions. Furthermore, we compare the shares under the formal (de jure) lockdown policies assuming perfect compliance with the shares under de facto lockdowns where there is some degree of non-compliance. We then estimate individuals' potential labour income losses and examine changes in poverty and labour income inequality. We find an increase in poverty and labour income inequality in most of the LAC countries due to social distancing; however, the observed changes are lower under de facto lockdowns, revealing the potential role of non-compliance as a coping strategy during the lockdowns. Social distancing measures have led to an increase in inequality both between and within countries. Lastly, we show that most of the dispersion in the labour income loss across countries is explained by the sectoral/occupational employment structure of the economies.
    Keywords: COVID-19,Social Distancing,Compliance,Employment,Poverty,Labour Income Inequality
    JEL: D33 E24 J21 J31
    Date: 2021
  3. By: Galassi, Gabriela (Bank of Canada)
    Abstract: This paper analyzes how firms respond to changes in tax benefits for low-earning workers and how such policies also affect high-earning workers. I explore establishment outcomes around Germany's 2003 Mini-Job Reform, which expanded tax benefits for low-earning workers. I document that highly exposed establishments–high proportion of low-earning workers–increase their employees relative to non-exposed establishments–low proportion of such workers. This relative expansion is tilted towards high-earning workers, not targeted by the tax benefits. Nonexposed establishments substitute employment towards low-earning workers without expanding at the same pace. My findings are consistent with a model in which employment growth the policy intended is accompanied by a reallocation of employment and production between highly exposed firms and non-exposed firms, resulting in an efficiency loss.
    Keywords: tax benefits, firm decisions, spillovers
    JEL: H20 H24 H32 E24 E64 I38 J23 J38
    Date: 2021–04
  4. By: Antonio Di Paolo (AQR-IREA, University of Barcelona); Alessia Matano (University of Rome “La Sapienza”)
    Abstract: This paper investigates the effects of working during university education on students’ labour market performance. We jointly consider the role of work intensity and the relationship with the field of study in a framework that accounts for self-selection into different types of jobs. The empirical analysis draws on data from three successive cohorts of graduates from the Spanish region of Catalonia. Our results point out that the probability of being employed four years after graduation is significantly higher for students who have worked in jobs well-matched with their degree relative to both full-time students and students who have worked in unrelated jobs. Further, the probability of having a permanent job is generally higher for those who worked before graduation, especially in the case of jobs related to the degree. However, the likelihood of early career job-qualification match is negatively affected by pre-graduation work experiences unrelated to degree’s contents.
    Keywords: University Graduates, Pre-graduation Jobs, Employability, Job Quality, Self-Selection JEL classification: I23, J24, J22
    Date: 2021–04
  5. By: Victoria Gregory; Guido Menzio; David G. Wiczer
    Abstract: Based on patterns of employment transitions, we identify three different types of workers in the US labor market: α's β's and γ's. Workers of type α make up over half of all workers, are most likely to remain on the same job for more than 2 years and, when they become unemployed, typically find a new job within 1 quarter. Workers of type γ comprise less than one-fifth of workers, have a low probability of staying on the same job for more than 2 years and, when they become unemployed, face a high probability of remaining jobless for more than 1 year. Workers of type β are in between αs and γ's. The earnings losses caused by displacement are relatively small and transitory for α-workers, while they are large and persistent for γ-workers. During the Great Recession, excess unemployment for α-workers rose by little and was reabsorbed quickly; unemployment for γ-workers rose by 20 percentage points and was not reabsorbed 4 years after its peak. We use a search-theoretic model of the labor market to rationalize the different patterns of employment transitions across types. The model naturally explains both the variation in the consequences of job displacement across types, and the variation in the dynamics of unemployment during the Great Recession. Our view is that several puzzling micro and macro phenomena about the labor market are driven by the behavior of the small group of γ-workers.
    JEL: E24
    Date: 2021–04
  6. By: Borjas, George J. (Harvard University); Edo, Anthony (CEPII, Paris)
    Abstract: Immigrant supply shocks are typically expected to reduce the wage of comparable workers. Natives may respond to the lower wage by moving to markets that were not directly targeted by immigrants and where presumably the wage did not drop. This paper argues that the wage change observed in the targeted market depends not only on the size of the native response, but also on which natives choose to respond. A non-random response alters the composition of the sample of native workers, mechanically changing the average native wage in affected markets and biasing the estimated wage impact of immigration. We document the importance of this selection bias in the French labor market, where women accounted for a rapidly increasing share of the foreign-born workforce since 1976. The raw correlations suggest that the immigrant supply shock did not change the wage of French women, but led to a sizable decline in their employment rate. In contrast, immigration had little impact on the employment rate of men, but led to a sizable drop in the male wage. We show that the near-zero correlation between immigration and female wages arises partly because the native women who left the labor force had relatively low wages. Adjusting for the selection bias results in a similar wage elasticity for both French men and women (between -0.8 and -1.0).
    Keywords: immigration, wages, selection, labor supply, female employment
    JEL: E24 F22 J21 J23
    Date: 2021–04
  7. By: Juliane Hennecke; Clemens Hetschko
    Abstract: Work as well as family life are crucial sources of human wellbeing, which however often interfere. This is especially so if partners work in the same occupation or industry. At the same time, being work-linked may benefit their career success. Still, surprisingly little is known about the wellbeing of work-linked couples. Our study fills this gap by examining the satisfaction differences between work-linked and non-work-linked partners. Using data from the German Socio-Economic Panel (SOEP, 2019), we estimate the effect of working in the same occupation and/or industry on life satisfaction as well as satisfaction with four areas of life: income, work, family and leisure. In the process, we employ pooled OLS estimations and instrumental variable strategies, for instance based on the gender disparity in industries and occupations. Our results suggest that being work-linked increases satisfaction with life as well as income and job satisfaction. These findings are consistent with positive assortative matching and mutual career support between work-linked partners. Our conclusions concern hiring couples as a means of recruiting exceptional talent.
    Keywords: work-linked couples, wellbeing, assortative matching, relationship quality, work-life balance, copreneurs, occupational gender disparity, dual career support
    JEL: I31 J12 J21 J44 M51
    Date: 2021
  8. By: Clark, Ken (University of Manchester); Nolan, Steve (University of Manchester)
    Abstract: We decompose the ethnic pay gap in Great Britain across the distribution of hourly wages, yielding a detailed insight into differences between groups and how these vary over pay percentiles and through time. While some groups experience reductions in the pay gap consistent with lower discrimination, including relatively well paid Indian workers and relatively poorly paid Bangladeshis, others - specifically Black groups - face an apparent glass ceiling barring access to well paid jobs. The increasing educational attainment of Britain's ethnic groups provides some optimism around narrowing pay differentials, particularly at the top of the distribution, while the introduction and uprating of the National Minimum/Living Wage has contributed to improvements at the lower end.
    Keywords: ethnic pay gap, race discrimination, minimum wages, decomposition
    JEL: D31 J15 J31 J38
    Date: 2021–04
  9. By: Jaqueline Oliveira; Bruno Palialol, Paula Pereda
    Abstract: The relationship between temperature and agriculture outcomes in Brazil has been widely explored, overlooking that most of the country's labor force is employed in nonagriculture sectors. We use monthly individual-level panel data spanning January 2015 to December 2016 to ask whether temperature shocks impact non-agriculture wages in formal labor markets. Our results show that a 1oC shock increases wages where climate are colder, but reduces wages where climate are hotter. We calculate that wages fall 0.42% on average, an income loss equivalent to 0.06% of GDP annually. Assuming future temperatures rise uniformly by 2oC, and that no adaptation occurs, we expect annual income losses five times larger. The heterogeneous effects we find also suggest that weather vulnerability may deepen existing income inequalities.
    Keywords: temperature shocks; labor productivity; nominal wage exibility; non-agriculture sector; formal labor markets
    JEL: C23 J24 Q54
    Date: 2021–04–14
  10. By: Julieta Caunedo; Elisa Keller; Yongseok Shin
    Abstract: Technology is the driver of labor allocation across sectors and occupations. Is the impact of technological change on developing countries similar to its impact on developed countries? Will developing countries follow the same development path that developed economies have taken? Our approach focuses on how technology shifts and reshapes the tasks workers perform on the job, and views occupations as the natural observable stand-in for these tasks. We first take stock of our knowledge on how technological change reallocates labor. We then construct a new measure of occupational task contents for each country and present new evidence on countries' task intensity. In the cross section, developed countries use non-routine analytical and interpersonal tasks more intensively than developing countries, but less intensively use routine-cognitive and routine-manual tasks. Both the occupational employment share and the occupational task contents of a country matter for these relationships. In the time dimension, countries with high initial task intensities experienced a decline in these intensities, suggesting convergence in task intensities across countries. Our results show that occupational task contents ought to be measured for each country for proper analysis. More broadly, we should not simply extrapolate what we know about the impact of technology on the labor market in developed countries to developing countries.
    JEL: J16 J24 O33
    Date: 2021–04
  11. By: Maczulskij, Terhi
    Abstract: Abstract This paper analyzes whether occupational polarization takes place within workers or due to changes in the composition of workers by using comprehensive panel data from Finland. The decomposition analysis shows that the decrease in mid-level routine occupations and the simultaneous increase in high-level abstract occupations is largely a within-worker phenomenon. In contrast, the share of low-skilled nonroutine manual tasks has largely increased through entry dynamics. Data on plant closures are used to identify involuntary separations from routine occupations. These results demonstrate a strong, uneven adjustment pattern, with routine cognitive workers being more able to move to abstract tasks and adjust with smaller wage costs than routine manual workers.
    Keywords: Job market polarization, Routine manual, Routine cognitive, Decomposition, Occupational mobility, Displacement
    JEL: J23 J62
    Date: 2021–04–09
  12. By: Guerrazzi, Marco; Giribone, Pier Giuseppe
    Abstract: In this paper, we explore the dynamics of working hours and wages in a model economy where a firm and its workforce are linked to each other by an implicit contract. Specifically, we develop a deterministic and a stochastic framework in which the firm sets its level of labour utilization by considering that workers' earnings tend to adjust in the direction of a fixed level. Without any uncertainty in firm's profitability, we show that the existence and the properties of stationary solutions rely on factors that usually determine the enforceability of contracts and we provide evidence that wages tend to move countercyclically towards the allocation preferred by the firm. Moreover, we show that adding uncertainty does not overturn the counter-cyclical pattern of wages but is helpful in explaining their dynamic behaviour in response to demand shocks as well as their typical stickiness observed at the macro level.
    Keywords: Implicit contract theory,Consumption smoothing,Out-of-equilibrium dynamics,Stochastic optimal control
    JEL: D86 E24 J41
    Date: 2021
  13. By: Sarah Flèche; Anthony Lepinteur; Nattavudh Powdthavee
    Abstract: Can capital constraints explain why there are more male than female entrepreneurs in most societies? We study this issue by exploiting longitudinal data on lottery winners. Comparing between large to small winners, we find that an increase in lottery win in period t-1 significantly increases the likelihood of becoming self-employed in period t. This windfall effect is statistically the same in magnitude for men and women; a one percent increase in exogenous income increases the probability of female self-employment by 0.6 percentage points, which is approximately 10% of the gender entrepreneurial gap. These results suggest that we can causally reduce the gender entrepreneurial gap by improving women's access to capital that might not be as readily available to the aspiring female entrepreneurs as it is to male entrepreneurs.
    Keywords: gender inequality, self-employment, lottery wins, BHPS
    JEL: J16 J21 J24
    Date: 2021–04
  14. By: Cilekoglu, Akin A. (University of Barcelona); Moreno, Rosina (University of Barcelona); Ramos, Raul (University of Barcelona)
    Abstract: This paper studies the impact of robot adoption on firms' global sourcing activities. Using a rich panel dataset of Spanish manufacturing firms, we show that robot adopting firms increased their intermediate input purchases from foreign and domestic suppliers between 2006 and 2016. The effects of robots differ across sourcing strategies: the highest in foreign outsourcing and the lowest in foreign vertical integration. We find that robot adopters fragment their production further by reducing the concentration of purchases from suppliers and the increase in intermediate input purchases is related to quality upgrading to a certain extent. Marginal treatment effects estimates suggest that responses to adoption are heterogeneous: higher probability of adoption intensifies the effects on outsourcing and weakens the effects on vertical integration. In contrast to rising concerns over reshoring, our findings suggest that robots have yet promoted trade in intermediate inputs.
    Keywords: robots, reshoring, trade, production fragmentation
    JEL: F14 F23 L23
    Date: 2021–04
  15. By: Duleep, Harriet; Liu, Xingfei; Regets, Mark
    Abstract: Two radically different descriptions of immigrant earnings trajectories in the U.S. have emerged. One asserts that immigrant men following the 1965 Immigration and Nationality Act have low initial earnings and high earnings growth. Another asserts that post-1965 immigrants have low initial earnings and low earnings growth. We describe the methodological issues that create this divide and show that low earnings growth becomes high earnings growth when immigrants are followed from their initial years in the U.S., earnings growth is allowed to vary with entry earnings, and-when following cohorts instead of individuals-sample restrictions commonly used by labor economists are avoided.
    Keywords: Sample restrictions,immigrant earning growth,human capital investment,the U.S. census
    JEL: J1 J2 J3 C1
    Date: 2021
  16. By: Aida Farmand; Owen Davis (Schwartz Center for Economic Policy Analysis (SCEPA))
    Abstract: The Earned Income Tax Credit (EITC) targets refundable tax credits to low-income workers, incentivizing labor supply and raising the incomes of tens of millions of Americans. One possible consequence of subsidizing low-wage work, however, is to reduce wage growth. A monopsony model of the EITC is developed in order to analyze its impacts on labor market outcomes, which are identified by exploiting variation in state EITC supplements. A first set of results focused on the food service industry find that the EITC increases employment and reduces turnover among young women. Further results suggest that the EITC reduces wages for workers without college degrees. These findings prompt a reconsideration of the redistributive effects of the EITC, particularly for groups like older low-wage workers who face slower wage growth as a result of the policy but do not receive the same level of benefits on average
    Keywords: Retirement income, Social Security claiming, Older worker labor supply
    JEL: H55 J26 J32
    Date: 2021–03
  17. By: Nurina Merdikawati; Sarah Xue Dong
    Abstract: This paper analyses the relationship between a significant shift to more stringent labour market regulations in Indonesia in the early 2000s and changes in employment patterns in the manufacturing sector. While this regulation shift has been associated with a notable decline in employment in labour intensive production in Indonesian manufacturing in the last two decades, there is little rigorous evidence to support the association. This study compares plants in labour intensive and non-labour intensive manufacturing industries over time, and use difference-in-difference method to analyse different employment trends between these two groups around the time of the labour regulation change. The findings indicate that that employment in plants in labour intensive manufacturing declined by 4 to 14 percent relative to plants in non-labour intensive manufacturing around the time of the labour regulation change. This pattern is robust to using different measures of labour intensity, and to controlling for other policies that can affect different industries differently during the same period including trade liberalisation, China’s ascension to WTO and changes in Multi Fibre Agreement.
    Keywords: : Large and medium manufacturing; labour intensive manufacturing; labour regulations; employment; difference-in-difference
    JEL: D22 J08 J21 L60 O14
    Date: 2021
  18. By: ; ; Daniel I. Garcia; Alison E. Weingarden
    Abstract: We estimate the causal effects of heroin use on labor market outcomes by proxying for heroin use with prior exposure to oxycodone, the largest of the prescription opioids with a well-documented history of abuse. After a nationwide tightening in the supply of oxycodone in 2010, states with greater prior exposure to oxycodone experienced much larger increases in heroin use and mortality. We find increases in heroin use led to declines in employment and labor force participation rates, particularly for white, young, and less educated groups, consistent with the profile of oxycodone misusers. The results show the importance of extending beyond prescriptions when accounting for the labor market effects of the opioid crisis.
    Keywords: Labor force; Participation rate; Opioid crisis
    JEL: I12 I18 J21
    Date: 2021–04–14
  19. By: Benjamin Marx; Vincent Pons; Tavneet Suri
    Abstract: We present the results from a field experiment on team diversity. Individuals working as door-to-door canvassers for a non-profit organization were randomly assigned a teammate, a supervisor, and a list of individuals to canvass. This created random variation within teams in the degree of horizontal diversity (between teammates), vertical diversity (between teammates and their supervisor) and external diversity (between teams and the individuals they canvassed). We observe team-level measures of performance and find that horizontal ethnic diversity decreases performance, while vertical diversity often improves performance, and external diversity has no effect. The data on time use suggests that horizontally homogeneous teams organized tasks in a more efficient way, while vertically homogeneous teams exerted lower effort.
    JEL: D22 J24 L22 M54 O12
    Date: 2021–04
  20. By: Fang, Tony (Memorial University of Newfoundland); Gunderson, Morley (University of Toronto); Lee, Byron (China Europe International Business School)
    Abstract: Based on Statistics Canada's worker-firm matched Workplace and Employee Survey, our econometric analysis indicated that the average probability of receiving training was 9.3 percentage points higher for younger (25-49) compared to older (50+) workers. Slightly more than half of that gap is attributed to older workers having a lower propensity to receive training after controlling for the characteristics that affect training. Their lower propensity to receive training tended to prevail across 54 different training measures. We find that older workers can be trained, but this requires training that is designed for their needs including: slower and self-paced instruction; hands-on practical exercises; modular training components that build in stages; familiarizing them with new equipment; and minimizing required reading and the amount of material covered.
    Keywords: training, older workers, worker-firm matched data, Canada
    JEL: J14 J18 J24
    Date: 2021–04
  21. By: Jan Eeckhout; Chunyang Fu; Wenjian Li; Xi Weng
    Abstract: Should optimal income taxation change when firms have market power? The recent rise of market power has led to an increase in income inequality and a deterioration in efficiency and welfare. We analyze how the planner can optimally set taxes on labor income of workers and on the profits of entrepreneurs to induce a constrained efficient allocation. Our results show that optimal taxation in the presence of market power can substantially increase welfare, but it also highlights the severe constraints that the Planner faces to correct the negative externality from market power, using the income tax as a Pigouvian taxes. Pigouvian taxes compete with Mirrleesian incentive concerns, which generally leads to opposing forces. Overall, we find that due to incentive concerns, market power tends to lower marginal tax rates on workers, whereas it increases the marginal tax rate on entrepreneurs.
    Keywords: optimal taxation, optimal profit tax, market power, market structure, markups
    JEL: D3 D4 J41
    Date: 2021–04
  22. By: Sarah Xue Dong
    Abstract: This study contributes to the literature on household decisions and women’s empowerment by looking at the relationship between labour market opportunities and women’s intra-household decision power in Indonesia. Using Bartik labour demand measures, I estimate the effect of change in local labour demand for women in large and medium manufacturing on women’s intra-household decision power. Household decision power is calculated using direct information on who makes decisions in the household. I find that increase in labour demand for women in large and medium manufacturing increases women’s intra-household decision power by a large magnitude. Increase in labour demand for men decreases women’s household decision power. Consistent with intra-household bargaining theories, increase in labour demand for women increases women’s decision power even for women who do not work. Based on new literature discussing the validity of Bartik instruments, I discuss the validity of my identification strategy and conduct robustness tests.
    Keywords: intra-household decisions, women’s empowerment, labour demand; large and medium manufacturing; shift-share (Bartik) instrument
    JEL: D10 J23 O14
    Date: 2021
  23. By: Green, Francis
    Abstract: This review examines the concept of the quality of work and employment (QWE), including both 'Decent Work' and the narrower concept of 'job quality'. The key axiom is that 'quality' relates to the extent and manner in which working conditions meet people's needs from work. The review emphasises the multi-disciplinary nature of the topic. It discusses the concept's objective character, its relationship with well-being, and its link with productivity. Important measurement issues are considered, including cost, international comparability, the choice of how many indices, the treatment of inequality and the problem of discipline insularity. Some theories of the antecedents of QWE imply universal trends, while others predict differentiation across countries and regions, attributable to labour market institutions and policy. The effects on well-being and health are studied in several disciplines, including a substantial research programme in psychology. Summary trends in Europe and distributions of job quality are presented for context, including gender gaps. This description shows gradual improvement in the physical environment of work and in working time quality over the decade from 2005. Yet the distribution of job quality in several domains is not at all closely related to a country's GDP. The review concludes with a discussion of job quality policy making, and frames the ongoing research agenda.
    Keywords: job quality,well-being,wages,insecurity,working time,work intensity,skills,discretion,social environment,physical working conditions
    JEL: J01 J30 J81
    Date: 2021
  24. 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
  25. By: Ka-Kit Iong; Andreas Irmen
    Abstract: Declining hours of work per worker in conjunction with a growing work force may give rise to fluctuations between growth regimes. This is shown in an overlapping generations model with two-period lived individuals endowed with Boppart-Krusell preferences (Boppart and Krusell (2020)). On the supply side, economic growth is due to the expansion of consumption-good varieties through endogenous research. A sufficiently negative equilibrium elasticity of the individual supply of hours worked to an expansion in the set of consumption-good varieties destabilizes the steady state so that equilibrium trajectories may fluctuate between two growth regimes, one with and the other without an active research sector. Fluctuations affect intergenerational welfare, the evolution of GDP, and the functional income distribution. A stabilization policy can shift the economy onto its steady-state path. Fluctuations arise for empirically reasonable parameter constellations. The economics of fluctuations between growth regimes is linked to the intergenerational trade of shares and their pricing in the asset market.
    Keywords: endogenous fluctuations, growth regimes, endogenous technological change, endogenous labor supply, OLG-model
    JEL: J22 O33 O41
    Date: 2021
  26. By: Naveen Singhal
    Abstract: This paper evaluates discrete choice models as tools for analyzing the effects of tax and transfer policies on labor supply. An advantage of discrete choice models is that they distinguish changes in labor force participation from changes in the hours of work. Such models can also capture the heterogeneity in labor supply response among and within demographic subpopulations. In this paper, two types of discrete choice models are estimated using cross-sectional data from the Current Population Survey: quadratic models and quasi-linear models. The models
    JEL: C35 H31 J22
    Date: 2021–04–15
  27. By: N. Meltem Daysal; Todd E. Elder; Judith K. Hellerstein; Scott A. Imberman; Chiara Orsini
    Abstract: We use rich administrative data from Denmark to assess medical theories that autism spectrum disorder (ASD) is a heritable condition transmitted through underlying parental skills. Positing that occupational choices reflect skills, we create two separate occupation-based skill measures and find that these measures are associated with ASD incidence among children, especially through the father’s side. We also assess the empirical relevance of assortative mating based on skill, concluding that intertemporal changes in assortative mating explain little of the increase in ASD diagnoses in recent decades.
    JEL: I10 J24
    Date: 2021–04
  28. By: James Fudurich; Lena Suchanek; Lise Pichette
    Abstract: Firms are at the forefront of adopting new technology. Using survey data from a global network of central banks, we assess the effects of digitalization on firms’ pricing and employment decisions.
    Keywords: Firm dynamics; Inflation and prices; Labour markets
    JEL: D22 E31 J21 O33

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