nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2022‒09‒19
25 papers chosen by
Joseph Marchand
University of Alberta

  1. Labor Market Power, Self-Employment, and Development By Amodio, Francesco; Medina, Pamela; Morlacco, Monica
  2. Does Performance Pay Influence Hours of Work? By Green, Colin P.; Heywood, John S.
  3. Employment and distributional effects of Greece’s national minimum wage By Roupakias, Stelios
  4. How Worker Productivity and Wages Grow with Tenure and Experience: The Firm Perspective By Andrew Caplin; Minjoon Lee; Søren Leth-Petersen; Johan Saeverud; Matthew D. Shapiro
  5. Does the Minimum Wage Affect Wage Inequality? A Study for the Six Largest Latin American Economies By Carlo Lombardo; Lucía Ramirez-Veira; Leonardo Gasparini
  6. Finance and the Reallocation of Scientific, Engineering and Mathematical Talent By Giovanni Marin; Francesco Vona
  7. The effects of sleep duration on child health and development By Nguyen, Ha Trong; Zubrick, Stephen R.; Mitrou, Francis
  8. Labor Supply Responsiveness to Tax Reforms By Hans Schytte Sigaard
  9. Personality Traits, Remote Work and Productivity By Gavoille, Nicolas; Hazans, Mihails
  10. Education expansion, college choice and labour market success By Federica Braccioli; Paolo Ghinetti; Simone Moriconi; Michele Pellizzari; Costanza Naguib
  11. Lifetime Consequences of Lost Instructional Time in the Classroom: Evidence from Shortened School Years By Kamila Cygan-Rehm
  12. Migration and Firm-Level Productivity By Fabling, Richard; Maré, David C.; Stevens, Philip
  13. Discrimination in a Rank Order Contest. Evidence from the NFL Draft By Gregory-Smith, Ian; Bryson, Alex; Gomez, Rafael
  14. Income Taxes, Gross Hourly Wages, and the Anatomy of Behavioral Responses: Evidence from a Danish tax reform By SUMIYA Kazuhiko; Jesper BAGGER
  15. Bringing Them In or Pushing Them Out? The Labor Market Effects of Pro-cyclical Unemployment Assistance Changes By Gerard Domènech-Arumí; Silvia Vannutelli
  16. Do Non-monetary Interventions Improve Staff Retention? Evidence from English NHS Hospitals By Sayli, Melisa; Moscelli, Giuseppe; Blanden, Jo; Bojke, Chris; Mello, Marco
  17. Intergenerational Spillover Effects of Language Training for Refugees By Mette Foged; Linea Hasager; Giovanni Peri; Jacob N. Arendt; Iben Bolvig
  18. Genetic Endowments, Income Dynamics, and Wealth Accumulation Over the Lifecycle By Daniel Barth; Nicholas W. Papageorge; Kevin Thom; Mateo Velásquez-Giraldo
  19. The impact of the JUNTOS conditional cash transfer programme on foundational cognitive skills: Does age of enrollment matter? By Douglas Scott; Jennifer Lopez; Alan Sánchez; Jere Behrman
  20. The Next Wave of Energy Innovation: Which Technologies? Which Skills? By David Popp; Francesco Vona; Myriam Gregoire-Zawilski; Giovanni Marin
  21. Gendered Ageism and Disablism and Employment of Older Workers By Joanne S. McLaughlin; David Neumark
  22. Regional diversification and intra-regional wage inequality in the Netherlands By Nicola Cortinovis; Dongmiao Zhang; Ron Boschma
  23. Staff engagement, coworkers’ complementarity and employee retention: Evidence from English NHS hospitals By Moscelli, G.;; Sayli, M.;; Mello, M.;
  24. Evaluating the Impacts of Minigrid Electrification in Sub-Saharan Africa By Ayhan, Sinem H.; Falchetta, Giacomo; Steckel, Jan C.
  25. Asymmetric Globalization and Top Performers Income By Joël Hellier

  1. By: Amodio, Francesco (McGill University); Medina, Pamela (University of Toronto); Morlacco, Monica (University of Southern California)
    Abstract: This paper shows that self-employment opportunities shape the market power of employers in low-income countries, with implications for industrial development. Using data from Peru, we document substantial employer concentration and high self-employment rates across manufacturing local labor markets. Where employer concentration is higher, wages are lower, and self-employment is more prevalent but less remunerative. To interpret these facts, we build a general equilibrium model where labor market power in each market arises from (i) strategic interactions among employers and (ii) sorting of heterogeneous workers across wage work and self-employment. We structurally estimate the model and quantify the relevance of these mechanisms for rent-sharing between workers and firms and for the effect of policies promoting manufacturing wage employment. We show that changes in concentration magnify the pass-through of productivity and profitability shocks to wages, but worker sorting across wage and self-employment mitigates these effects. We find that policies that increase firm productivity are more effective in expanding wage employment and increasing workers' earnings than other interventions that improve workers' skills or decrease firm entry cost.
    Keywords: labor market power, monopsony, self-employment, sorting, development
    JEL: J2 J3 J42 L10 O14 O54
    Date: 2022–08
  2. By: Green, Colin P. (Norwegian University of Science and Technology (NTNU)); Heywood, John S. (University of Wisconsin, Milwaukee)
    Abstract: A large body of research links performance pay to poorer worker health. The exact mechanism generating this link remains in doubt. We examine a common suspect, that performance pay causes employees to work longer hours in pursuit of higher pay. Using representative data for the UK, we demonstrate that performance pay is associated with more work hours and a higher probability of working long hours. Yet approximately two thirds of these differences reflect worker sorting rather than behavioral change. The remaining influence appears too small to generate the differences in health except for blue-collar occupations that we isolate.
    Keywords: performance related pay, working hours
    JEL: J22 J33
    Date: 2022–08
  3. By: Roupakias, Stelios
    Abstract: This paper provides explores the short-run effects of minimum wage policies on the distribution of earnings and employment. We exploit the variation in the ‘bite’ of the minimum wage across region-industry cells, employing data from the Greek Labour Force Survey over the period 2016-2020. Using a Difference-in-Differences strategy, we estimate unconditional quantile regressions that yield economically important effects up to the 40th quantile of the earnings distribution. Importantly, we find that this does not come at the expense of disemployment effects, either at the extensive or at the intensive margin. Interestingly, there is some evidence that an increase in the minimum wage intensity is correlated with higher female employment. We attribute this finding to the fact that female labour markets are usually less competitive
    Keywords: Minimum wage, Earnings, Employment
    JEL: J2 J21 J31 J40
    Date: 2022–08–18
  4. By: Andrew Caplin; Minjoon Lee; Søren Leth-Petersen; Johan Saeverud; Matthew D. Shapiro
    Abstract: How worker productivity evolves with tenure and experience is central to economics, shaping, for example, life-cycle earnings and the losses from involuntary job separation. Yet, worker-level productivity is hard to identify from observational data. This paper introduces direct measurement of worker productivity in a firm survey designed to separate the role of on-the-job tenure from total experience in determining productivity growth. Several findings emerge concerning the initial period on the job. (1) On-the-job productivity growth exceeds wage growth, consistent with wages not being allocative period-by-period. (2) Previous experience is a substitute, but a far less than perfect one, for on-the-job tenure. (3) There is substantial heterogeneity across jobs in the extent to which previous experience substitutes for tenure. The survey makes use of administrative data to construct a representative sample of firms, check for selective non-response, validate survey measures with administrative measures, and calibrate parameters not measured in the survey.
    JEL: J24 J30
    Date: 2022–08
  5. By: Carlo Lombardo (CEDLAS-IIE-FCE-UNLP & CONICET); Lucía Ramirez-Veira (CEDLAS-IIE-FCE-UNLP & CONICET); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP & CONICET)
    Abstract: Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in the bite of the national minimum wage across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an equalizing effect also on the wage distribution of informal workers.
    JEL: J22 J31 J38 K31
    Date: 2022–09
  6. By: Giovanni Marin (University of Urbino ‘Carlo Bo’, SEEDS, Ferrara); Francesco Vona (University of Milan, Fondazione Eni Enrico Mattei, and OFCE)
    Abstract: The US financial sector has become a magnet for the brightest graduates in the science, technology, engineering and mathematical fields (STEM). We provide quantitative bases for this anecdotal fact for the US, over the period 1980-2019 and with a specific focus on the last decade where information on major fields of study is available. First, we show that long-run educational upgrading of finance was biased towards STEM graduates, especially for postgraduates, and accelerated in the last decade. Second, the STEM upgrading also occurs within finance and business occupations, matching a task reorientation towards mathematics in those occupations. Third, STEM reallocation towards finance is more pronounced among experienced workers peaking at prime age. Fourth, the reallocation of STEM is associated with large wage premia in finance, which are heterogeneous across occupations, age groups, degrees and along the wage distribution. Returns to STEMs are higher than returns to other degrees in finance and become very high in finance and managerial occupations at the top of the distribution, especially for postgraduates.
    Keywords: Finance industry, finance occupations, STEM labour markets, reallocation, technological change
    JEL: E24 G28 I26 J24 J31
    Date: 2022–07
  7. By: Nguyen, Ha Trong; Zubrick, Stephen R.; Mitrou, Francis
    Abstract: This paper studies the extent to which sleep duration causally affects health, cognitive and noncognitive development in children and adolescents. Using over 50 thousand time use diaries from two cohorts of Australian children spanning over 16 years, we first document that children sleep significantly less on days with longer daylight duration, partly by going to sleep later and waking up earlier. We then exploit variations in local daily daylight duration measured on predetermined diary dates across the same individuals through time as an instrument in an individual fixed effects regression model to draw causal estimates of sleep duration on a comprehensive set of child development indicators. Our results show that sleeping longer improves selected general developmental, behavioural and health outcomes in children and adolescents. By contrast, sleeping more statistically significantly increases their BMI scores, mainly by increasing the risk of being overweight. Moreover, while the impact of sleep duration on general and behavioural outcomes is more pronounced for females or older individuals, the effect on BMI is largely driven by males. The results indicate a null or relatively small positive impact of sleeping longer on cognitive skills.
    Keywords: Sleep,Time Allocation,Circadian Rhythms,Human Capital,Child Development
    JEL: I00 I12 J22 J24
    Date: 2022
  8. By: Hans Schytte Sigaard (Department of Economics and Business Economics, Aarhus University)
    Abstract: Labor supply responses constitute real responses to taxation and are central for policy analysis. This paper estimates the elasticity of labor supply at the intensive margin by applying conventional estimation strategies from the elasticity of taxable income (ETI) literature to administrative register data on performed hours of work. The elasticity is estimated to be 0.08, significant, and can be attributed to individuals changing main and secondary employment, a general increase in contract hours, and a reduction in paid absence. By also estimating ETI, which captures all responses to taxation, I show that a large part of total responses can be attributed to individuals adjusting work hours, capturing inherent labor responses, and I thereby provide a link between the labor and public finance literatures. These findings suggest that contextual factors such as labor market fluidity and flexibility are important to facilitate real responses to taxation and that labor supply responses are core underlying drivers of total responses to taxation.
    Keywords: Elasticity of labor supply, marginal tax rates, tax reforms, behavioral responses, public economics
    JEL: H21 H24 H30 J22 J24 J62
    Date: 2022–08–31
  9. By: Gavoille, Nicolas (Stockholm School of Economics, Riga); Hazans, Mihails (University of Latvia)
    Abstract: The future of teleworking ultimately depends on its impact on workers' productivity and wellbeing, yet the effect of remote working on productivity is not well understood. This paper investigates the link between personality traits and workers' productivity when working from home. We exploit a survey providing measures of the "Big Five" personality traits for more than 1700 recent teleworkers. We document strong links between personality, productivity, and willingness to work from home post-pandemic. Ceteris paribus, Conscientiousness and Openness to Experience are positively associated with a higher productivity from home, especially for females. On the other hand, the link between Extraversion and preference for teleworking is negative. These results suggest that a one-size-fits-all policy is unlikely to maximize neither firms' productivity nor workers' satisfaction.
    Keywords: personality traits, teleworking, work from home, productivity, COVID-19
    JEL: J24 J32 J81
    Date: 2022–08
  10. By: Federica Braccioli; Paolo Ghinetti; Simone Moriconi; Michele Pellizzari; Costanza Naguib
    Abstract: We apply the unordered monotonicity setting of Heckman and Pinto (2018) to estimate the distribution of response types and the counterfactual outcomes associated with the choice of a STEM or non-STEM college. Instrumental variation is induced by the proximity to universities offering STEM and/or non-STEM degrees. The empirical analysis uses confidential survey data for Italy, combined with administrative information about the founding dates of all Italian universities and faculties. We find that about 2.4% of individuals in our sample would choose a STEM college if there was one in their province of residence. The corresponding share of non-STEM switchers is 1.1%. We simulate the effects on a number of labour market outcomes of various reforms improving the geographical distribution of colleges and we find sizeable impacts, particularly for women
    Keywords: Monotonicity, Returns to Education, Human Capital
    JEL: I23 I26 I28 J24 J31
    Date: 2022–08
  11. By: Kamila Cygan-Rehm
    Abstract: This study estimates the lifetime effects of lost instructional time in the classroom on labor market performance. For identification, I use historical shifts in the school year schedule in Germany, which substantially shortened the duration of the affected school years with no adjustments in the core curriculum. The lost in-school instruction was mainly compensated for by assigning additional homework. Applying a difference-in-differences design to social security records, I find adverse effects of the policy on earnings and employment over nearly the entire occupational career. Unfavorable impacts on human capital are a plausible mechanism behind the deteriorated labor market outcomes. The earnings losses are driven by men, for whom the policy also elevated income inequality due to larger harm occurring at the bottom of the income distribution.
    Keywords: instructional time, education, earnings, skills, Germany
    JEL: I21 I26 J24 J17
    Date: 2022
  12. By: Fabling, Richard (Independent Researcher); Maré, David C. (Motu Economic and Public Policy Research Trust); Stevens, Philip
    Abstract: We use linked employer-employee microdata for New Zealand to examine the relationship between firm-level productivity, wages and workforce composition. Jointly estimating production functions and firm- level wage bill equations, we compare migrant workers with NZ-born workers, through the lens of a derived "productivity-wage gap" that captures the difference in relative contribution to output and the wage bill. Whether we look at all industries using a common production function, or separately estimate results for the five largest sectors, we find that skilled and long-term migrants make contributions to output that exceed moderately-skilled NZ-born workers, with that higher contribution likely being due to a mix of skill differences and/or effort which is largely reflected in higher wages. Conversely, migrants that are not on skilled visas are associated with lower output and lower wages than moderately-skilled NZ-born, also consistent with a skills/effort narrative. The share of employment for long-term migrants has grown over time (from 2005 to 2019) and we show that their relative contribution to output appears to be increasing over the same period. Finally, we present tentative evidence that high-skilled NZ-born workers make a stronger contribution to output when they work in firms with higher migrant shares, which is suggestive of complementarities between the two groups or, at least, positive mutual sorting of these groups into higher productivity firms.
    Keywords: migrant labour, firm productivity, worker sorting, wage determinants, quality-adjusted labour input
    JEL: D24 J15 J31
    Date: 2022–08
  13. By: Gregory-Smith, Ian (University of Sheffield); Bryson, Alex (University College London); Gomez, Rafael (University of Toronto)
    Abstract: This paper examines discrimination in the NFL draft. The NFL is a favourable empirical setting to examine the role of skin colour because franchise selectors are required to make rank-order judgements of players based on noisy signals of future productivity. Since wages are tightly related to the rank-order of the draft for the first four years of a player's career, even if discrimination plays only a marginal role in selection, there could be a large discriminatory impact. We observe large unadjusted racial differences in drafting. However, much of the variation is explained by Black and White players selecting into different playing positions. Conditional upon a large set of control variables, including athletic performance at a marque selection event (the NFL combine), we do not find robust evidence of racial discrimination in NFL drafting between 2000 and 2018.
    Keywords: discrimination, race, NFL
    JEL: J15 J24
    Date: 2022–08
  14. By: SUMIYA Kazuhiko; Jesper BAGGER
    Abstract: This paper provides quasi-experimental evidence on the effects of income taxes on gross hourly wages by utilizing administrative data and a tax reform in Denmark. The reform introduced joint taxation to a middle tax bracket, bringing large changes to the tax system facing married couples. Using variation in spousal income for identification, we present non-parametric graphical evidence based on a difference-in-differences design among working married males. First, we find heterogeneous effects across income levels. For low-income workers, taxes have negative and dynamic effects on wages. Their elasticity of wages (with respect to net-of-marginal-tax rates) is close to one. For higher-income workers, the effects are small and static, with an elasticity of approximately 0.2. Second, wages respond to taxes through human capital accumulation and job changes. Finally, with smaller magnitudes than wages, daily hours worked also respond negatively to taxes, which contrasts with the prediction from a standard labor supply-and-demand model.
    Date: 2022–08
  15. By: Gerard Domènech-Arumí; Silvia Vannutelli
    Abstract: We exploit an unanticipated labor market reform in 2012 Spain to estimate the effects of pro-cyclical changes in long-term unemployment assistance (UA). The reform raised the minimum age to receive unlimited-duration UA from 52 to 55. Using a dfference-in-differences design, we document that shorter benefits caused (i) shorter non-employment duration, especially among younger workers; (ii) higher labor force exit and other programs' take-up, especially among older workers; (iii) lower reemployment wages. The reform induced moderate government savings. Our results highlight how considering the interplay with labor market conditions is crucial when designing long-term beneffit schedules affecting workers close to retirement.
    Keywords: Unemployment, Unemployment Insurance, Wages
    Date: 2022–07
  16. By: Sayli, Melisa (University of Surrey); Moscelli, Giuseppe (University of Surrey); Blanden, Jo (University of Surrey); Bojke, Chris (University of Leeds); Mello, Marco (University of Surrey)
    Abstract: Excessive turnover reduces the stock of an organization's human capital. In the public sector, where wage increases are often constrained, managers need to leverage non-monetary working conditions to retain their workers. We investigate whether workers are responsive to improvements in non-wage aspects of their job by evaluating the impact on nurse retention of a programme that encouraged public hospitals to increase staff retention through data monitoring and improving the non-pecuniary aspects of nursing jobs. Employing rich employee-level administrative data from the universe of English NHS hospitals, and a staggered difference-in-difference design, we find that the programme has improved nursing retention within hospitals and decreased exits from the public hospital sector. Our results indicate that a light-touch intervention can shift management behavior and improve hospital workforce turnover. These findings are important in sectors affected by labor supply shortages, and they are especially policy-relevant in the health care context, where such shortages have potentially negative effects on patient outcomes.
    Keywords: labor supply, workforce retention, non-monetary incentives, hospital care, staggered difference-in-differences
    JEL: J32 J38 J45 J63 I11 C22
    Date: 2022–08
  17. By: Mette Foged; Linea Hasager; Giovanni Peri; Jacob N. Arendt; Iben Bolvig
    Abstract: Children of refugees are among the most economically disadvantaged youth in several European countries. They are more likely to drop out of school and to commit crime. We show that a reform in Denmark in 1999, that expanded language training for adult refugees and improved their economic integration, had significant intergenerational spillover effects in terms of higher completion rates from lower secondary school and lower juvenile crime rates. The effects on crime are driven by boys who were below school-starting age when their parents were treated.
    JEL: I21 J24 J30 J6
    Date: 2022–08
  18. By: Daniel Barth; Nicholas W. Papageorge; Kevin Thom; Mateo Velásquez-Giraldo
    Abstract: We develop and estimate a life-cycle consumption savings model in which observed genetic variation is allowed to affect wealth accumulation through several distinct channels. We focus on genetic markers that predict educational attainment, aggregated into a predictive index called a polygenic score. Based on substantial descriptive evidence, we allow variation in these endowments to affect earnings, the disutility of labor, stock market participation costs, and idiosyncratic rates of return on risky investments. The model also incorporates endogenous retirement and a realistic social security system. Parameter estimates suggest that, in addition to earnings, genetic differences are significantly associated with risky asset returns, both of which contribute to wealth inequality. Counterfactual policy exercises indicate that two ways to lower costs of an aging population (extending the age of retirement or cutting social security benefits) have similar magnitudes and distributions of welfare costs even though the latter policy appears to reduce wealth differences between agents with different genetic endowments. This illustrates the importance of welfare calculations when evaluating how genes interact with policy, which is possible to do if we incorporate genetic data into structural models.
    JEL: D14 D15 D31 D63 G50 H31 H55 I38 J24 J26
    Date: 2022–08
  19. By: Douglas Scott (University of Oxford); Jennifer Lopez (Grupo de Análisis para el Desarrollo (GRADE)); Alan Sánchez (Grupo de Análisis para el Desarrollo (GRADE)); Jere Behrman (University of Pennsylvania)
    Abstract: This paper studies the relationship between the age of enrolment in Peru’s conditional cash transfer programme, JUNTOS, and the foundational cognitive skills of a sample of children aged between 5 and 12 years old. Using a difference-in-differences approach and exploiting within-household variation, we show that younger siblings in recipient households display significantly higher levels of inhibitory control than their older counterparts (0.11 standard deviations), having benefited from the programme for the first time at a relatively earlier age. In high-income countries, this behavioural trait has been linked to later-life outcomes such as job success, physical health, and even reduced risk of criminality. Conversely, we find little evidence that enrolment age is associated with long-term memory, working memory, or implicit learning. Employing a threshold estimator, we show that relative gains in inhibitory control are most clearly defined where a child benefits from the programme before they reach 80 months of age (6.7 years). In an extension to our main results, we then conduct mediation analysis, demonstrating that a small but meaningful proportion of this benefit (6.5%) operates through changes in the probability of the child’s timely entry into primary school.
    Keywords: Cognitive skills; JUNTOS; conditional cash transfer; Peru; inhibitory control
    JEL: J24 I24
    Date: 2022–09–06
  20. By: David Popp; Francesco Vona; Myriam Gregoire-Zawilski; Giovanni Marin
    Abstract: The costs of low-carbon energy fell dramatically over the past decade, leading to rapid growth in its deployment. However, many challenges remain to deploy low-carbon energy at a scale necessary to meet net zero carbon emission targets. If net zero goals are to be met, developing complementary technologies and skills will be a necessary part of the next wave of low-carbon energy innovation. These include both improvements in physical capital, such as smart grids to aid integration of intermittent renewables, and human capital, to develop the skills workers need for a low-carbon economy. We document recent trends in energy innovation and discuss the lessons learnt for policy. We then discuss the potential role for complementary innovation in both physical capital—using smart grids as an example of how policy can help—and human capital, where we show how a task approach to labor informs policy and research on the worker skills needed for the energy transition.
    JEL: J24 O31 O38 Q42 Q55
    Date: 2022–08
  21. By: Joanne S. McLaughlin; David Neumark
    Abstract: Gendered discrimination based on age and disability is a pressing issue, because this discrimination can interfere with the goal of lengthening work lives, especially for older women. In the United States, the Age Discrimination in Employment Act and the Americans with Disabilities Act prohibit age and disability discrimination in employment, while Title VII of the Civil Rights Act bars discrimination against women. However, because gender and age (and disability) discrimination fall under different statutes, these laws may be inadequate to protect against discrimination based on gendered ageism and disablism. Legal rulings in the United States generally do not recognize intersecting claims – discrimination based on two or more protected characteristics – when those characteristics are covered by separate statutes. This may help explain the evidence that age discrimination is worse for women than for men. We discuss the theory and methods we can use to analyze these issues, and the relevant laws and their failure to protect women from gendered ageism. We review evidence on gendered age discrimination, and evidence on the effects of discrimination laws and how well they protect from intersectional discrimination. Finally, we discuss potential changes in policies that could better protect against gendered age discrimination.
    JEL: J14 J7
    Date: 2022–08
  22. By: Nicola Cortinovis; Dongmiao Zhang; Ron Boschma
    Abstract: The literature has drawn little attention to the relationship between industrial dynamics (i.e. the rise and fall of industries) and intra-regional wage inequality. This explorative study examines the relationship between industry dynamics and wage inequality in NUTS-3 regions in the Netherlands in the period 2010-2019. While the literature has shown that related diversification in more complex industries enhances economic growth in regions but also inequality between regions, our study shows that related diversification in less complex industries tends to reduce wage inequality within a region. This implies it remains a policy challenge to combine smart and inclusive growth in regions. Our study also showed that there is no significant relationship between exit of industries and regional inequality, with one exception: unrelated low-complex exits tend to increase intra-regional wage inequality. Overall, these findings suggest that related diversification in less complex industries tends to bring benefits in terms of inclusive growth, while unrelated exits in less complex industries tend to do the opposite.
    Keywords: intra-regional inequality, regional inequality, relatedness, structural change, inclusive growth
    JEL: O18 O31 O33 R11
    Date: 2022–08
  23. By: Moscelli, G.;; Sayli, M.;; Mello, M.;
    Abstract: Retention of skilled workers is essential for labour-intensive organisations like hospitals, where an excessive turnover of doctors and nurses can reduce the quality and quantity of services to patients. In the public sector, where salaries are often not negotiable at individual level, workers increasingly care about the non-pecuniary aspects of their jobs. We empirically investigate the role played by two such aspects, staff engagement and the retention of complementary coworkers, in affecting employee retention within the public hospital sector. We exploit a unique and rich panel dataset based on employee-level payroll and staff survey records from the universe of English NHS hospitals, and estimate dynamic panel data models to deal with the bias due to reverse causality. We find that nurses’ retention is positively associated with their engagement, whereas doctors’ retention is positively associated with nurses’ retention. This heterogeneous response of employee retention can be explained by the hierarchy of workers’ professional roles within the organisation.
    Keywords: employee retention; staff engagement; job complementarities; coworkers; hospitals; endogeneity;
    JEL: C33 C36 I11 J22 J28 J63
    Date: 2022–08
  24. By: Ayhan, Sinem H. (Institute for East and Southeast European Studies, Regensburg); Falchetta, Giacomo (IIASA - International Institute for Applied Systems Analysis); Steckel, Jan C. (Mercator Research Institute on Global Commons and Climate Change (MCC))
    Abstract: A large share of the population of sub-Saharan Africa (SSA) lacks access to modern energy services. To bridge the electricity access gap, distributed power generation systems such as minigrids and stand-alone photovoltaic systems emerge as attractive options in the power supply solution space. In this study, we analyze the impact of minigrid electrification on household welfare and agricultural development across SSA countries. The empirical analysis makes use of a novel geocoded database covering 1,888 minigrid projects from 27 SSA countries, which is merged with various data sources including satellite-based nighttime light data, vegetation health index, and Demographic and Health Surveys. Our results indicate that minigrid electrification is positively associated with households’ electricity uptake, ownership of low-power home appliances, and agricultural employment and productivity, while being effective in changing neither overall labor market outcomes nor the choice of cooking fuels.
    Keywords: electricity access, minigrids, household welfare, agriculture, sub-Saharan Africa
    JEL: O13 J43 Q01 Q42 N57
    Date: 2022–07
  25. By: Joël Hellier
    Abstract: This paper proposes a new explanation for the rise in top performers income based on an asymmetry in globalization, with one country producing globalized non-rivalrous performances (music, films, series, entertainment programmes etc.) whereas other countries produce purely domestic ones. In the country with globalized performances, the globalization dynamics (growing number of countries involved in the global market) entails an increase in the number and incomes of performers and an increase in inequality by the top. The higher the performer’s talent, the higher the globalization-driven increase in income. In countries with purely national performances, the participation in the global economy reduces the number and incomes of performers and lessens inequality by the top. In contrast, when globalization is symmetric (all countries producing globalized performances), there is no change in the number and incomes of performers in all countries compared to autarky. These results are in line with several characteristics observed in activities directly impacted by the cultural supremacy of American and English speaking countries in the global economy: 1) the share of Anglo-Saxon countries in the top 100 richest is substantially higher for actresses, actors, singers and TV show and film producers than for other occupations (CEOs, businessmen etc.), 2) the increase in the share of top incomes is significantly higher in Anglo-Saxon countries, and 3) the increase in inequality is greater in those countries.
    Keywords: GAsymmetry; Globalization; Inequality; Superstars
    JEL: F66 J31 J44 L82
    Date: 2022–08

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