nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2021‒05‒31
24 papers chosen by
Joseph Marchand
University of Alberta

  1. Drivers of Working Hours and Household Income Dynamics during the COVID-19 Pandemic: The Case of the Netherlands By Zimpelmann, Christian; Gaudecker, Hans-Martin von; Holler, Radost; Janys, Lena; Siflinger, Bettina M.
  2. Earnings Inequality and the Minimum Wage: Evidence from Brazil By Niklas Engbom; Christian Moser
  3. Do International Study Programmes Pay off for Local Students? By Wang, Zhiling; Pastore, Francesco; Karreman, Bas; van Oort, Frank
  4. Good Reverberation? Teacher Influence in Music Composition since 1450 By Borowiecki, Karol Jan
  5. Labor Market Power By David W. Berger; Kyle F. Herkenhoff; Simon Mongey
  6. Addressing social desirability bias in child labor measurement : an application to cocoa farms in Côte d’Ivoire By Marine JOUVIN
  7. Tax Progressivity and Self-Employment Dynamics By Arulampalam, Wiji; Papini, Andrea
  8. Direct, Spillover and Welfare Effects of Regional Firm Subsidies By Siegloch, Sebastian; Wehrhöfer, Nils; Etzel, Tobias
  9. Are Temporary Jobs Stepping Stones or Dead Ends? A Meta-Analytical Review of the Literature By Filomena, Mattia; Picchio, Matteo
  10. California's Paid Family Leave Law and the Employment of 45-64 Year Old Adults By Bartel, Ann P.; Kim, Soohyun; Ruhm, Christopher J.; Waldfogel, Jane
  11. Digging into the digital divide: Workers' exposure to digitalization and its consequences for individual employment By Genz, Sabrina; Schnabel, Claus
  12. The Dynamics and Spillovers of Management Interventions: Evidence from the Training Within Industry Program By Nicola Bianchi; Michela Giorcelli
  13. Agglomeration Economies and Race Specific Spillovers By Elizabeth Ananat; Shihe Fu; Stephen Ross
  14. How the COVID-19 Pandemic Affects Job Stress of Rural Teachers By Li, Haizheng; Liu, Qinyi; Ma, Mingyu
  15. The Gender Gap in Income and the COVID-19 Pandemic By Doorley, Karina; O'Donoghue, Cathal; Sologon, Denisa Maria
  16. The Inelastic Demand for Affirmative Action By Getik, Demid; Islam, Marco; Samahita, Margaret
  17. Employees’ Performance Variation over Fixed-Term Contracts - Evidence from the National Hockey League By Furmaco, L.; Longley, N.; Palermo, A.; Rossi, G.
  18. Making Entrepreneurs: Returns to Training Youth in Hard Versus Soft Business Skills By Laura Chioda; David Contreras-Loya; Paul Gertler; Dana Carney
  19. Italy’s parabolas of GDP and subjective well-being: the role of education By Pugno, Maurizio
  20. Barriers to humanitarian migration, victimisation and integration outcomes: evidence from Germany By Freitas-Monteiro, Teresa; Ludolph, Lars
  21. Sexual Exploitation of Trafficked Children: Survey Evidence from Child Sex Workers in Bangladesh By Shoji, Masahiro; Tsubota, Kenmei
  22. Labor Market Power in Developing Countries: Evidence from Colombian Plants By Amodio, Francesco; de Roux, Nicolás
  23. Race and Coaching Hierarchy By Dave Berri; Alex Farnell; Vincent O'Sullivan; Robert Simmons
  24. Social and fiscal impacts of statutory minimum wages in EU countries: A microsimulation analysis with EUROMOD By Klaus Grünberger; Edlira Narazani; Stefano Filauro; Áron Kiss

  1. By: Zimpelmann, Christian (IZA); Gaudecker, Hans-Martin von (University of Bonn); Holler, Radost (Bonn Graduate School of Economics); Janys, Lena (University of Bonn); Siflinger, Bettina M. (Tilburg University)
    Abstract: Using customized panel data spanning the entire year of 2020, we analyze the dynamics of working hours and household income across different stages of the CoVid-19 pandemic. Similar to many other countries, during this period the Netherlands experienced a quick spread of the SARS-CoV-2 virus, adopted a set of fairly strict social distancing measures, gradually reopened, and imposed another lockdown to contain the second wave. We show that socio-economic status is strongly related to changes in working hours, especially when strict economic restrictions are in place. In contrast, household income is equally unaffected for all socio-economic groups. Examining the drivers of these observations, we find that pandemic-specific job characteristics (the ability to work from home and essential worker status) explain most of the socio-economic gradient in total working hours. Furthermore, household income is largely decoupled from shocks to working hours for employees. We provide suggestive evidence that large-scale labor hoarding schemes have helped insure employees against demand shocks to their employees.
    Keywords: essential workers, coronavirus, working from home, labor market, inequality, mitigation policies, COVID-19
    JEL: D31 J21 J22 J24 J33
    Date: 2021–05
  2. By: Niklas Engbom; Christian Moser
    Abstract: We show that a rise in the minimum wage accounts for a large decline in earnings inequality in Brazil since 1994. To this end, we combine rich administrative and survey data with an equilibrium model of the Brazilian labor market. Our results imply that the minimum wage has far-reaching spillover effects on wages higher up in the distribution, accounting for one-third of the 25.9 log point fall in the variance of log earnings in Brazil since 1994. At the same time, the minimum wage’s effects on employment and output are muted by reallocation of workers toward more productive firms.
    JEL: E24 E25 E61 E64 J31 J38
    Date: 2021–05
  3. By: Wang, Zhiling (Erasmus University Rotterdam); Pastore, Francesco (Università della Campania Luigi Vanvitelli); Karreman, Bas (Erasmus University Rotterdam); van Oort, Frank (Erasmus University Rotterdam)
    Abstract: International study programmes are increasing in number worldwide, but little is known about the impact on local students' job prospects, especially in a non-English speaking countries. Using rich administrative data from Statistics Netherlands, we analyse labour market outcomes of native graduates in master programmes of Dutch universities between 2006 to 2014 within 5 years after graduation. A coarsened exact matching analysis within cohort-university-detailed field of study group addresses the self-selection issue by generating a matched sample of students with similar characteristics. We find that graduates from international programmmes obtain a wage premium of 2.3% starting from the 1st year after graduation, ceteris paribus. The wage premium keeps increasing by about 1% every year. We investigate the mechanisms through which the wage premium operates. The wage premia can neither be explained by wage increase via cross-firm mobility, nor by faster upward mobility within a firm. Instead, evidence point towards the differential characteristics of the first job upon graduation. Graduates from international programmes are much more likely to choose large firms that have a higher share of foreign-born employees and have business of trade for the first job. They get a head start in wage level and the initial wage advantages persist in the long-run.
    Keywords: international programme, native students, wage premium, coarsened exact matching
    JEL: I23 J24 F22
    Date: 2021–05
  4. By: Borowiecki, Karol Jan (Department of Business and Economics)
    Abstract: Teachers and mentors in creative fields ranging from scientific research to the arts may shape their students' skills and views of the craft, and in turn the work they produce. How significant is this influence, how long does it last, and are there consequences for the variety and quality of students' inventive output? We study these questions in the context of Western music composition over five centuries, a historically important cultural institution, and in a setting where composers' musical lineage is well-documented, the content of their work can be directly compared, and its lasting value can be measured. We find strong evidence of influence, document when it arises and persists, and evaluate its consequences. The results provide insight into the production of creative or intellectual output, specifically around questions of where ideas come from, why certain ideas get produced as opposed to others, and what the ramifications might be.
    Keywords: Teacher influence; creativity; cultural transmission; transmission of ideas; music history
    JEL: I21 J24 N30 O31 Z11
    Date: 2021–05–25
  5. By: David W. Berger; Kyle F. Herkenhoff; Simon Mongey
    Abstract: To measure labor market power in the US economy, we develop a tractable quantitative, general equilibrium, oligopsony model of the labor market. We estimate key model parameters by matching the firm-level relationship between labor market share and employment size and wage responses to state corporate tax changes. The model quantitatively replicates quasi-experimental evidence on (i) imperfect productivity-wage pass-through, (ii) strategic behavior of dominant employers, and (iii) the local labor market impact of mergers. We then measure welfare losses relative to the efficient allocation. Accounting for transition dynamics, we quantify welfare losses from labor market power relative to the efficient allocation as roughly 6 percent of lifetime consumption. An analytical decomposition attributes equal parts to dead-weight losses and misallocation. Lastly, we find that declining local concentration added 4 ppt to labor's share of income between 1977 and 2013.
    Keywords: Labor markets; Market structure; Oligopsony; Strategic interaction
    JEL: E20 J20 J42
    Date: 2021–05–13
  6. By: Marine JOUVIN
    Abstract: This paper proposes new estimates of the prevalence of child labor in Côte d’Ivoire’s cocoa farms that are certi?ed free of child labor. We rely on list experiments to avoid issues of social desirability bias associated with measuring sensitive issues, that we implement on a sample of 4 458 Ivorian cocoa farmers. We ?nd that 24% of them were helped by a child under 16 for harvesting and breaking the cocoa pods during the past 12 months, 21% for preparing their farm, and 25% employed and paid a child to perform any task on their cocoa farm. These results are twice as high as those declared by farmers when directly questioning them on their child labour use. Last, we show that the prevalence of child labor is higher for farms that are more remote, in line with limited school opportunities for children, lower adult labor supply, and weaker law enforcement capacity related to the reliance on children for farm activities. While child labor has been given considerable attention over recent years by most actors of the cocoa value chain, this paper shows that further progress can still be accomplished, particularly amongst the most remote farming communities.
    Keywords: List experiment, social desirability bias, child labor, certi?cation schemes
    JEL: C83 J23 J43 J81
    Date: 2021
  7. By: Arulampalam, Wiji (University of Warwick); Papini, Andrea (European Commission, Joint Research Centre)
    Abstract: Analysis of the relationship between taxes and self-employment should account for the interplay between responses in self-employment and wage employment. To this end, we estimate a two-state multi-spell duration model which accounts for both observed and unobserved heterogeneity using a large longitudinal administrative dataset for Norway for 1993 to 2011. Our findings confirm theoretical predictions, and are robust to various changes to definitions and sample selections. A policy experiment simulating a flatter tax schedule in the year 2000 is found to encourage self-employment, delivering a net increase of predicted inflow into self-employment from 2.8% to 5.3%.
    Keywords: tax progressivity, income tax, self-employment, duration analysis
    JEL: H24 H25 J24 C41
    Date: 2021–05
  8. By: Siegloch, Sebastian (University of Mannheim); Wehrhöfer, Nils (ZEW Mannheim); Etzel, Tobias (Deutsche Bundesbank)
    Abstract: We analyze the effects of a large place-based policy, subsidizing up to 50% of investment costs of manufacturing firms in East Germany after reunification. We show that a 1-percentage-point decrease in the subsidy rate leads to a 1% decrease in manufacturing employment. We document important spillovers for untreated sectors in treated counties, untreated counties connected via trade and local taxes, whereas we do not find spillovers on counties in the same local labor market. We show that the policy is at least as efficient as cash transfers to the unemployed, but is more effective in curbing regional inequality.
    Keywords: place-based policies, employment, spillovers, administrative microdata
    JEL: H24 J21 J23
    Date: 2021–05
  9. By: Filomena, Mattia (Marche Polytechnic University); Picchio, Matteo (Università Politecnica delle Marche, Ancona)
    Abstract: We present a meta-analysis on the debate about the "stepping stone vs. dead end" hypothesis related to the causal effect of temporary jobs on future labour market performances. We select academic papers published on international peer-reviewed journals from 1990 until 2021. Among 78 observations from 64 articles, 32% support the hypothesis according to which temporary contracts are a port of entry into stable employment positions, 23% report ambiguous or mixed findings, and the remaining 45% provide evidence in favour of the dead end hypothesis. The results from meta-regressions suggest that the stepping stone effect is more likely to emerge when self-selectivity issues are dealt with, especially when using the timing-of-events approach. The studies focusing on temporary work agency jobs and casual/seasonal jobs detect more easily results in favour of the dead end hypothesis. Finally, in more recent years and when the unemployment rate is larger, the dead end hypothesis is more likely to prevail.
    Keywords: meta-analysis, labour market, temporary jobs, stepping stones, dead ends
    JEL: J08 J41 J42 J81
    Date: 2021–05
  10. By: Bartel, Ann P. (Columbia University); Kim, Soohyun (Columbia University); Ruhm, Christopher J. (University of Virginia); Waldfogel, Jane (Columbia University)
    Abstract: Paid family leave allows workers to take time off from work to care for a family member with a serious health condition, with reduced financial risk and increased job continuity. In 2004, California was the first state in the nation to implement a paid family leave program allowing workers to take up to eight weeks off work with partial pay to care for their own or a family member's serious health condition. While the effects of California's law on the labor supply of parents of newborns have been extensively studied, the role of paid family leave in the labor supply of workers who may need to provide care for a spouse has not been studied widely. We examine the effects of California's law on the employment of workers who are aged 45-64 and have a disabled spouse, using the 2001-2008 American Community Survey. Our preferred estimates suggest the paid leave program increased the employment of 45-64 year old women with a disabled spouse in California by around 0.9 percentage points (or 1.4% on a pre-law base rate of 65.9%) in the post-law period compared to their counterparts in other states, with a 2.9 percentage point rise in private sector employment. The employment of men with a disabled spouse in California also increased, but by a smaller amount: 0.7 percentage points (or 0.8% on a pre-law base 86.8%) (with a non-significant 0.4 percentage point decrease in private sector employment).
    Keywords: paid family leave, older workers, employment
    JEL: J01 J20 J22
    Date: 2021–05
  11. By: Genz, Sabrina; Schnabel, Claus
    Abstract: While numerous studies have analyzed the aggregate employment effects of digital technologies, this paper focuses on the employment development of individual workers exposed to digitalization. We use a unique linked employer-employee data set for Germany and a direct measure of the first-time introduction of cutting-edge digitalization technologies in establishments between 2011 and 2016. Applying a matching approach, we compare workers in establishments investing in digital technologies with similar employees in establishments that do not make such an investment. We find that the employment stability of incumbent workers is lower in investing than non-investing establishments, but most displaced workers easily find jobs in other firms, and differences in days in unemployment are small. We also document substantial heterogeneities in the employment effects across skill groups, occupational tasks performed, and gender. Employment reactions to digitalization are most pronounced for both low- and high-skilled workers, for workers with non-routine tasks, and for female workers. Our results underline the importance of tackling the impending digital divide among different groups of workers.
    Keywords: digitalization,employment,separations,skills,tasks
    JEL: J21 J63 O33
    Date: 2021
  12. By: Nicola Bianchi; Michela Giorcelli
    Abstract: This paper examines the long-term and spillover effects of management interventions on firm performance. Under the Training Within Industry (TWI) program, the U.S. government provided management training to firms involved in war production between 1940 and 1945. Using a newly collected panel dataset on all 11,575 U.S. firms that applied to the program, we find that the TWI training had positive and long-lasting effects on firm performance and the adoption of beneficial managerial practices. Moreover, it generated complementarities among different types of training and had positive spillover effects on the supply chain of trained firms.
    JEL: J24 L2 M2 M5 N34 N64 O15 O32 O33
    Date: 2021–05
  13. By: Elizabeth Ananat; Shihe Fu; Stephen Ross
    Abstract: Racial social isolation within and across workplaces may reduce firm productivity. We provide descriptive evidence that African-Americans feel socially isolated from Whites. To test whether isolation affects productivity, we estimate models of Total Factor Productivity for manufacturing firms allowing returns to local area concentrations of economic activity and human capital spillovers to vary with the racial and ethnic composition of both the establishment and the local area employment. Higher own-race exposure for establishment workers to workers at surrounding establishments strengthens the relationship between productivity and both employment density and concentrations of college educated workers. Effects for human capital spillovers are largest for firms with more patents and more research and development spending. Looming demographic changes suggest that this drag on productivity may increase over time.
    JEL: J15 J24 L11 R12 R23 R32
    Date: 2021–05
  14. By: Li, Haizheng (Georgia Tech); Liu, Qinyi (University of International Business and Economics Beijing); Ma, Mingyu (Central University of Finance and Economics Beijing)
    Abstract: This study investigates how the COVID-19 pandemic has affected teachers' job-specific stresses and their enthusiasm for the teaching occupation. We use unique data from China that cover the periods before and after the start of the pandemic and apply difference-in-differences type methods. We find that, among rural young teachers, the pandemic has caused higher teaching stress and career development stress and has reduced passion towards the teaching occupation. We investigate the working channels of the pandemic, including job-related activities and social network. After controlling for possible working channels, the COVID-19 pandemic still shows a strong direct impact on job sentiments.
    Keywords: enthusiasm for occupation, job stress, pandemic, COVID-19
    JEL: I18 J24 J28
    Date: 2021–05
  15. By: Doorley, Karina (Economic and Social Research Institute, Dublin); O'Donoghue, Cathal (National University of Ireland, Galway); Sologon, Denisa Maria (LISER (CEPS/INSTEAD))
    Abstract: The gender income gap is large and well documented for many countries. Recent research shows that it is mainly driven by differences in working patterns between men and women, but also by wage differences. The tax-benefit system cushions the gender income gap by redistributing between men and women. The Covid-19 pandemic has resulted in unprecedented levels of unemployment in 2020 in many countries, with some suggestion that men and women have been differently affected. This research investigates the effect of the Covid-19 pandemic on the gender gap in income in Ireland. Using nowcasting techniques and microsimulation, we model the effect of pandemic induced employment and wage changes on market and disposable income. We show how the pandemic and the associated tax-benefit support can be expected to change the income gap between men and women. Policy conclusions are drawn about future redistribution between men and women.
    Keywords: gender inequality, Ireland, tax-benefit system, COVID-19
    JEL: D31 H23 J16 J31
    Date: 2021–05
  16. By: Getik, Demid (Department of Economics, Lund University); Islam, Marco (Department of Economics, Lund University); Samahita, Margaret (School of Economics, University College Dublin)
    Abstract: We study the origins of support for gender-related affirmative action (AA) in two pre-registered online experiments (N = 1, 700). Participants act as employers who decide whether to use AA in hiring job candidates. We implement three treatments to disentangle the preference for AA stemming from i) perceived gender differences in productivity, ii) beliefs about AA effects on productivity, or iii) other non-material motives. To test i), we provide information to employers that there is no gender gap in productivity. To test ii), we inform the candidates about the hiring rule ex-ante, allowing us to observe how AA is expected to affect productivity. To test iii), we remove the payment to the employers based on the chosen candidates’ productiv- ity, thus making AA cheaper. We do not find significant differences in AA support across treatments, despite successfully altering beliefs about expected productivity differences. Our results suggest that AA choice reflects a more intrinsic and inelastic preference for advancing female candidates.
    Keywords: affirmative action; beliefs; gender; information; institution
    JEL: C91 D02 D83 J38 J71
    Date: 2021–05–12
  17. By: Furmaco, L. (Department of Economics and the Murphy Institute, Tulane University, IZA, GLO); Longley, N. (Department of Business, Nevada State College); Palermo, A. (Institute for Labour Law and Industrial Relations in the European Union); Rossi, G. (University of Birkbeck, London)
    Abstract: We investigate whether employees vary their performance during fixed-term contracts. We follow National Hockey League players’ performance over ten seasons. We use a two-stage least square fixed effect model to address empirical limitations in previous studies. We find that players’ performance varies at the end of the contract depending on ability, tenure, and (geographical) willingness to move. In particular, long-tenure and low-ability short-tenure workers vary their performance, depending on their continent of origin; these results might be due to different willingness to move, at different stages of players’ career.
    Keywords: fixed-term contracts, incentives, shirking behavior, strategic behavior
    JEL: D82 J24 J33 M52 Z22
    Date: 2021–05
  18. By: Laura Chioda; David Contreras-Loya; Paul Gertler; Dana Carney
    Abstract: We study the medium-term impacts of the Skills for Effective Entrepreneurship Development (SEED) program, an innovative in-residence 3-week mini-MBA program for high school students modeled after western business school curricula and adapted to the Ugandan context. The program featured two separate treatments: the hard-skills MBA features a mix of approximately 75% hard skills and 25% soft skills; the soft skills curriculum has the reverse mix. Using data on 4400 youth from a nationally representative sample in a 3-arm field experiment in Uganda, the 3.5 year follow-up demonstrated that training was effective in improving both hard and soft skills, but only soft skills were directly linked to improvements in self-efficacy, persuasion, and negotiation. The skill upgrade was rewarded in substantially higher earnings; 32.1% and 29.8% increases in earnings for those who attended hard- and soft-training, respectively, most of which, was generated through self-mployment. Furthermore, youth in both groups were more likely to start enterprises and more successful in ensuring their businesses' survival. The program led to significantly larger profits (24.2% and 27.2% for hard- and soft- treatment arms respectively) and larger business capital investments (38.4% and 32.6% for SEED hard and SEED soft, respectively). Both SEED curricula were very cost-effective; two months worth of the extra earnings caused by the training alone would exceed the cost of the program. These benefits abstract from the job- and business-creation benefits of the program, which were substantial: relative to the control group, SEED entrepreneurs created 985 additional jobs and 550 new businesses.
    JEL: J24 L26 O1
    Date: 2021–05
  19. By: Pugno, Maurizio
    Abstract: The rise and decline of the Italian economy over the past 60 years form a surprisingly regular parabola, if the main European partner economies are taken as benchmark, so that its vertex equal to 1 means that Italy completely caught-up Europe around the 1990s. This implies that, in order to repeat that experience of catching-up, Italy needs to grow at extraordinary rates, which are not on the horizon. The paper shows that the Italians’ morale is even in worse conditions and explores why. The analysis firstly focuses on subjective well-being (and other subjective indices), thus finding another parabola and with more worrying features than the economic parabola. Then it explores the role of education in shaping the long-run dynamics of both the economy and subjective well-being. As a first result, the paradox of the excess supply of educated workers in Italy becomes clearer. The second result shows how poor education weakened Italians’ ability to fully enjoy their income, in particular after the shocks of the 1990s. An education policy thus becomes urgent to provide both specialized skills for production and general skills for people’s lives, thus definitively reinforcing the recent weak rebound in educational levels.
    Keywords: economic decline, subjective well-being, education, Italy
    JEL: I25 I31 J24 O15 O52
    Date: 2021–05–30
  20. By: Freitas-Monteiro, Teresa; Ludolph, Lars
    Abstract: In this paper, we link the peril of asylum seekers’ migratory journey to economically quantifiable outcomes in the destination country using refugee survey data from Germany collected in the aftermath of the 2015 refugee crisis. We start by showing that, accounting for selection effects, physical victimisation during the journey to Germany is strongly associated with significantly lower mental well-being and general health upon arrival in the destination. The physical victimisation experience severely distorts the human capital investment decision by leading affected refugees to favour joining the labour force and engaging in part-time and marginal employment over pursuing host-country education. We place our findings into both the psychiatric and experimental economic literature, which suggest that experiencing physical trauma in vulnerable situations results in a "loss of future directedness" or "impatience" among the victimised, leading them to discount future payoffs more heavily.
    Keywords: refugees; victimisation; labour market integration; education
    JEL: F22 J15 J21 O15
    Date: 2021–05–01
  21. By: Shoji, Masahiro; Tsubota, Kenmei
    Abstract: Human trafficking is a serious humanitarian problem. Using a nationally representative survey of Bangladeshi child sex workers and an instrumental variable model, we examine the working conditions of trafficked child sex workers and how they differ from those of nontrafficked child sex workers. Existing studies investigating trafficking victimization only used a sample of rescued/escaped victims, and this study is the first to analyze those who are still being exploited. We find that the victims trade sex with 190 percent more clients at a 67.8 percent lower wage and are more exposed to violence, leading to sickness, such as fever and headache. However, the differences in the prevalence of STDs and injury are insignificant presumably because the owners have an incentive to protect the victims from STDs. These findings suggest that evaluating sex workers’ working conditions by the prevalence of STDs alone may underestimate the severity of the exploitation of victims. Furthermore, conducting an empirical analysis without distinguishing between trafficked and nontrafficked workers, as performed in previous studies, leads to misunderstandings regarding the sex industry. We also contribute to the literature concerning the worst form of child labor by providing the first rigorous evidence of the working conditions of child sex workers. Finally, four implications for practitioners are discussed.
    Keywords: human trafficking; worst form of child labor; organized crime; sexual crime; child abuse; sexually transmitted diseases; post-disaster crime
    JEL: I15 J22 J31 J47 K42 O15
    Date: 2021–05
  22. By: Amodio, Francesco (McGill University); de Roux, Nicolás (Universidad de los Andes)
    Abstract: How much can employers in low and middle-income countries suppress wages below marginal productivity? Using plant and customs data from Colombia, we exploit pre- determined variation across plants in sales export destination combined with variation in exchange rates to generate plant-specific shocks to marginal revenue productivity and labor demand. We estimate a firm-level labor supply elasticity of around 2.5, implying that workers produce about 40% more than their wage level. Our results indicate that Colombian and US manufacturers have a comparable degree of labor market power.
    Keywords: labor market power, export, Colombia
    JEL: J42 L10 O14 O54
    Date: 2021–05
  23. By: Dave Berri; Alex Farnell; Vincent O'Sullivan; Robert Simmons
    Abstract: Despite its best efforts, the National Football League (NFL) has long been criticised for its lack of minority leadership amongst its teams. Recent hires (and non-hires) have only served to heighten this criticism. To assess this, we use a new, rich and unique dataset to examine the relationship between race and coaching hierarchy in the NFL. Our results indicate that young, experienced and well performing coordinators are likely to be promoted to Head Coach while older and poorly performing coaches are more likely to be fired. A coach’s race does not seem to play a role in either promotions or firings. In the post Rooney Rule era (post 2003) however, black coordinators are marginally more likely to be promoted than previously. Black Head Coaches on the other hand, are neither more nor less likely to find a job at the same level. The Rooney Rule has been successful to the extent that teams now consider (and ultimately appoint) equally skilled black coordinators to Head Coaching jobs, despite our evidence suggesting that equally skilled black coordinators had always been available.
    Keywords: Racial Discrimination, NFL, Coaches
    JEL: J71 Z21 Z22
    Date: 2021
  24. By: Klaus Grünberger (European Commission - JRC); Edlira Narazani (European Commission - JRC); Stefano Filauro (European Commission - Directorate-General for Employment, Social Affairs and Inclusion); Áron Kiss (European Commission - Directorate-General for Economic and Financial Affairs)
    Abstract: This paper analyses the first-round effects of hypothetical minimum wage increases on social outcomes in 21 EU countries with a statutory national minimum wage based on a microsimulation approach using EUROMOD. The methodological challenges related to the use of available EU household survey data are described, along with the choices made to address these challenges. The paper assesses hypothetical scenarios in which countries with a statutory national minimum wage increase their minimum wage to various reference values, set in relation to the gross national median and average wage. The model simulations suggest that minimum wage increases can significantly reduce in-work poverty, wage inequality and the gender pay gap, while generally improving the public budget balance. The implied wage increases for the beneficiaries are substantial, while the implied increases in the aggregate wage bill and, as a consequence, possible negative employment impacts, are generally modest.
    Keywords: minimum wage, microsimulation, European Union, wage inequality, in-work poverty, gender pay gap.
    JEL: H31 I32 J31
    Date: 2021–05

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