nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2022‒10‒17
23 papers chosen by
Joseph Marchand
University of Alberta

  1. Using Distribution Regression Difference-In-Differences to Evaluate the Effects of a Minimum Wage Introduction on the Distribution of Hourly Wages and Hours Worked By Biewen, Martin; Fitzenberger, Bernd; Rümmele, Marian
  2. The Rise of Age-Friendly Jobs By Daron Acemoglu; Nicolaj Søndergaard Mühlbach; Andrew J. Scott
  3. Blurred Boundaries: A Day in the Life of a Teacher By Gibney, Victoria Hunter; West, Kristine L.; Gershenson, Seth
  4. Technological Change and the Finance Wage Premium By Ata Can Bertay; Jose Gabo Carreno; Harry Huizinga; Burak Uras; Nathanael Vellekoop
  5. How Do Age-Related Policy Reforms Promote Employment among Older Adults in Singapore? By Sun, Jessica Ya; Usui, Emiko
  6. Mismatch in preferences for working from home - evidence from discrete choice experiments By Piotr Lewandowski; Katarzyna Lipowska; Mateusz Smoter
  7. Labour supply responses to income tax changes in Spain. By Antonio Cutanda; Juan A. Sanchis
  8. Child Labour Consequences on Education and Health: A Review of Evidence and Knowledge Gaps By Delphine BOUTIN; Marine JOUVIN
  9. Quantifying and Explaining the Decline in Public-School Teacher Retirement Benefits By Nino Abashidze; Robert L. Clark; Lee A. Craig
  10. Gender, motivation, and self-selection into teaching By Barigozzi, Francesca; Parasnis, Jaai; Tani, Massimiliano
  11. Racial and Ethnic Disparities in Retirement Outcomes: Impacts of Outreach By Angelino Viceisza; Amaia Calhoun; Gabriella J.O. Lee
  12. Life-cycle labour supply with human capital: Evidence for Spain By Antonio Cutanda; Juan A. Sanchis Llopis
  13. Understanding Labor Market Discrimination against Transgender People: Evidence from a Double List Experiment and a Survey By Aksoy, Billur; Carpenter, Christopher S.; Sansone, Dario
  14. Improving skills and employment opportunities in Tunisia By Robert Grundke; Steven Cassimon
  15. Working from Home Around the World By Aksoy, Cevat Giray; Barrero, Jose Maria; Bloom, Nicholas; Davis, Steven J.; Dolls, Mathias; Zarate, Pablo
  16. Import competition and domestic transport costs By Michiel Gerritse; Andrea Caragliu
  17. Informal Institution Meets Child Development: Clan Culture and Child Labor in China By Tang, Can; Zhao, Zhong
  18. Multitasking By Zaiceva-Razzolini, Anzelika
  19. City Size, Family Migration, and Gender Wage Gap: Evidence from Rural-Urban Migrants in China By Xing, Chunbing; Yuan, Xiaoyan; Zhang, Junfu
  20. Child Care in the United States: Markets, Policy, and Evidence By Herbst, Chris M.
  21. Robots at work: recent evidence with new data By Derick Almeida; Tiago Miguel Guterres Neves Sequeira
  22. Novel Shift-Share Instruments and Their Applications By Benjamin Ferri
  23. Teachers' Desired Mobility to Disadvantaged Schools: Do Financial Incentives Matter? By Julien Silhol; Lionel Wilner

  1. By: Biewen, Martin (University of Tuebingen); Fitzenberger, Bernd (Institute for Employment Research (IAB), Nuremberg); Rümmele, Marian (University of Tübingen)
    Abstract: This paper evaluates the effects of the newly introduced German minimum wage on the distribution of hourly wages and hours worked. The study is based on the German Structure of Earnings Survey (GSES), the only large scale data set for Germany that includes information on hourly wages and hours worked. We provide a full distributional analysis based on counterfactual distributions that would have prevailed, had the minimum wage not been introduced. Our results suggest that its introduction almost eliminated wage rates below its threshold and, depending on the specification considered, led to spill-over effects up to 20 percent above it. We show that inequality in hourly wages fell between 2014 and 2018, but that the long-term trend of rising inequality would already have been stopped after 2014 without the minimum wage. We demonstrate that the existence of pre-trends leads to an upward bias for the estimation of the minimum wage effect. We do not find any significant shifts in the distribution of weekly working hours. As a methodological contribution, we provide a transparent treatment of distribution regression difference-in-differences (DR DiD) based on bite measures.
    Keywords: minimum wage, distribution regression, difference-in-differences, inequality
    JEL: D31 J31 J38
    Date: 2022–09
  2. By: Daron Acemoglu; Nicolaj Søndergaard Mühlbach; Andrew J. Scott
    Abstract: In 1990, one in five U.S. workers were aged over 50 years whereas today it is one in three. One possible explanation for this is that occupations have become more accommodating to the preferences of older workers. We explore this by constructing an “age-friendliness” index for occupations. We use Natural Language Processing to measure the degree of overlap between textual descriptions of occupations and characteristics which define age friendliness. Our index provides an approximation to rankings produced by survey participants and has predictive power for the occupational share of older workers. We find that between 1990 and 2020 around three quarters of occupations have seen their age-friendliness increase and employment in above-average age-friendly occupations has risen by 49 million. However, older workers have not benefited disproportionately from this rise, with substantial gains going to younger females and college graduates and with male non-college educated workers losing out the most. These findings point to the need to frame the rise of age-friendly jobs in the context of other labour market trends and imperfections. Purely age-based policies are insufficient given both heterogeneity amongst older workers as well as similarities between groups of older and younger workers. The latter is especially apparent in the overlapping appeal of specific occupational characteristics.
    JEL: E24 J11 J24 J62
    Date: 2022–09
  3. By: Gibney, Victoria Hunter (American University); West, Kristine L. (St. Catherine University); Gershenson, Seth (American University)
    Abstract: The burnout, stress, and work-life balance challenges faced by teachers have received renewed interest due to the myriad disruptions and changes to K-12 schooling brought about by the COVID-19 pandemic. However, even prior to the pandemic relatively little was known about teachers' time use outside of the classroom, the blurring of work and home boundaries, and how teachers compare to similar professionals in these regards. We use daily time-diary data from the American Time Use Survey (ATUS) for 3,227 teachers and 1,947 professionals in similarly prosocial occupations from 2003 to 2019 to examine occupational differences in time use. Compared to observationally similar non-teachers, teachers spend significantly more time volunteering at their workplace and completing work outside the workplace. On average, teachers spend 12 more minutes working outside of the workplace on weekdays than observably similar non-teachers, and 39 more minutes on weekends. The weekend disparity is particularly large among secondary school teachers. This suggests that before the widespread switch to online and hybrid learning necessitated by the COVID pandemic, teachers were already navigating blurrier work-life boundaries than their counterparts in similar professions. This has important implications for teacher turnover and for the effectiveness and wellness of teachers who remain in the profession.
    Keywords: teacher labor supply, time use
    JEL: I2 J22
    Date: 2022–09
  4. By: Ata Can Bertay; Jose Gabo Carreno; Harry Huizinga; Burak Uras; Nathanael Vellekoop
    Abstract: This paper utilizes a comprehensive worker-firm panel for the Netherlands to quantify the impact of ICT capital-skill complementarity on the finance wage premium after the Global Financial Crisis. We apply additive worker and firm fixed-effect models to account for unobserved worker- and firm-heterogeneity and show that firm fixed-effects correct for a downward bias in the estimated finance wage premium. Our results indicate a sizable finance wage premium for both fixed- and full-hourly wages. The complementarity between ICT capital spending and the share of high skill workers at the firm-level reduces the full-wage premium considerably and the fixed-wage premium almost entirely.
    Keywords: finance wage premium, worker-firm panels, skill-biased technological change
    JEL: G20 J24 J31 O33
    Date: 2022–10–01
  5. By: Sun, Jessica Ya (Huazhong University); Usui, Emiko (Hitotsubashi University)
    Abstract: This study uses data from the Singapore Life Panel to investigate the effects of age-related policy reforms on older adult labor supply behaviors in Singapore. We first evaluate the impact of the Retirement and Re-employment Act (RRA) reform in 2017, which raised the maximum re-employment age from 65 to 67 years for those who were able to claim pension benefits at age 64. We find that the RRA reform reduced the probability of unemployment among people aged 66 years by 5.8 percentage points and increased the probability to continue working in the longest-held job during the lifetime by 11.4 percentage points. Second, we examine the impact of the pension-eligibility age reform of 2018, which raised the pension-eligibility age from 64 to 65 years for those who were protected by the mandatory labor protection and re-employment policy up to the age of 67 years. This rise in the pension-eligibility age increased the probability of full-time employment by 8.2 percentage points and reduced the probability of part-time employment by 5.7 percentage points among people aged 64 years. These two reforms promoted employment among older adults in different ways. Specifically, enhanced employment protection at age 66 increased the older adults' labor supply in the extensive margin, resulting in a welfare improvement for older adults since those who had been underemployed were less likely to be so after the reform. Still, their ineligibility to claim their pension at age 64 lowered their economic well-being because it increased their labor supply in the intensive margin to supplement the delay in pension benefits.
    Keywords: pension reform, retirement, older adult, Singapore
    JEL: H55 J22 J26
    Date: 2022–09
  6. By: Piotr Lewandowski; Katarzyna Lipowska; Mateusz Smoter
    Abstract: Working from home became widespread during the COVID-19 pandemic, but workers’ and employers’ preferences towards it may diverge when the world of work “returns to normal†. We study workers’ and employers’ willingness to pay for working from home using discrete choice experiments with more than 10,000 workers and more than 1,500 employers in Poland. We randomised wage differences between otherwise identical home- and office-based jobs and between otherwise identical job candidates. We found that demand for working from home was substantially higher among workers than among employers. Most workers would prefer to work from home if offered the same wage for a home-based job as for an office-based job, while most employers would prefer to hire an office-based worker. On average, workers would sacrifice 5.1% of their earnings for the option to work from home, especially for 2-3 days a week (7.3%) rather than five days a week (2.8%). On average, employers expect a wage cut of 40.7% from candidates who want to work from home. This gap in the valuations of WfH reflects mainly the additional effort required from managers, followed by their assessments of productivity loss resulting from WfH, and the discrepancy between employers’ and workers’ valuations of benefits that WfH offers workers. Only among the minority of employers who find that working from home brings productivity gains, managers’ valuation of working from home aligns with workers' willingness to pay for it.
    Keywords: working from home, willingness to pay, discrete choice experiment
    JEL: J21 J44
    Date: 2022–09
  7. By: Antonio Cutanda (Universidad de Valencia, Valencia, Spain. ORCID number: 0000-0003-2066-4632); Juan A. Sanchis (Universidad de Valencia and ERICES, Valencia, Spain. ORCID number: 0000-0001-9664-4668)
    Abstract: This paper simulates the response of the Spanish labour supply to income tax changes using estimates for the intertemporal elasticity of substitution of leisure. These elasticities are calculated using a pseudo-panel built combining information of the EPA and of the ECPF, from 1987 to 1997. Our findings suggest that income tax changes can have an impact on Spanish labour supply, though the effects would be minor. We also uncover that this labour response differs across men and women, as well as between permanent and fixed-term contract workers. And that the responses differ depending on the age of the worker.
    Keywords: Labour Supply; Labour Income Tax; Intertemporal Elasticity of Substitution of Leisure; Simulations
    JEL: E62 H24 H31 J22
    Date: 2022–09
  8. By: Delphine BOUTIN; Marine JOUVIN
    Abstract: Understanding and quantifying the consequences of child labour on children’s short- and longterm development is an important step in designing appropriate policies and programs to improve children’s well-being. We provide an updated review of the literature on the impact of child labour on children’s education and health. Specifically, this paper first explain the mechanisms by which child labour impacts children's education, physical health, and mental health, both in the short and long term. Second, we synthesize the available knowledge on the causal effect of child labour on education and health. We reviewed studies focusing on developing countries that investigate the consequences of child labour on education (25 studies selected), physical health (11 studies) and mental health (4 studies). Empirical evidence leaves no doubt about the negative impact of child labour on their physical and mental health. Although the consequences of child labour on education are mostly negative, working children could also benefit from learning additional skills. Finally, we highlight the methodological limitations and gaps of the current evidence, indicating that the empirical results reported are more an indication of potential effects than an actual quantification of the impacts of child labour.
    Keywords: Child Labour, Education, Physical Health, Mental Health
    JEL: I15 I25 J24
    Date: 2022
  9. By: Nino Abashidze; Robert L. Clark; Lee A. Craig
    Abstract: In recent decades, many states have reduced future retirement benefits for newly hired teachers. We estimate that in 2020 the average initial monthly retirement benefit, for teachers retiring with 30 years of service, is 11.2 percent lower than that of teachers retiring in the same plan with the provisions that were in place in 2000, implying a lower annual benefit of over $3,000. We examine why state plans that cover only teachers, along with plans in which teachers are not included in Social Security, have made smaller reductions in the generosity of their pension benefits in recent decades.
    JEL: H55 J26 J32 J45 N31
    Date: 2022–09
  10. By: Barigozzi, Francesca (University of Bologna); Parasnis, Jaai (Monash University); Tani, Massimiliano (University of New South Wales)
    Abstract: This paper investigates the role of intrinsic and extrinsic motivation in choosing a teaching career using data from the Household Income and Labour Dynamics in Australia. We find that the opportunity costs of becoming a teacher vary by gender: women enjoy a small wage premium, whilst males suffer a large wage penalty. We also find that non-monetary aspects and job amenities (such as motivation for the job, job security, and work/family life balance) have a different influence on teaching careers by gender, which can influence the sorting of male and female teachers across government and private schools. Notwithstanding evidence of positive selection into teaching in terms of cognitive ability and motivation for the job, the asymmetries in opportunity costs and non-monetary aspects reveal that introducing differentiated contracts tailored to gender preferences may influence teachers' recruitment by gender. However, we caution that such prospective initiatives need to balance the trade-off between attracting talented and motivated individuals into teaching and promoting gender equality, which arises from the data.
    Keywords: teacher, incentives, Australia, decomposition
    JEL: I21 J16 J24 J31 M52
    Date: 2022–09
  11. By: Angelino Viceisza; Amaia Calhoun; Gabriella J.O. Lee
    Abstract: We review select literature on racial and ethnic disparities in retirement outcomes and the impact of outreach on such outcomes. First, there are significant disparities in retirement outcomes, reflecting a long history of racism and structural barriers. Second, there is comparatively little work on the differential impact of retirement outreach across race and ethnicity. Future work should consider designing interventions that cater to the needs of specific demographic groups, for example, by embracing the fact that Blacks, Hispanics, and Whites acquire retirement information from different sources. Future work should also innovate on methodologies for data collection, linking, and analysis.
    JEL: D83 J15 J26 J32 Z13
    Date: 2022–09
  12. By: Antonio Cutanda (Universidad de Valencia, Valencia, Spain ORCID number: 0000-0003-2066-4632); Juan A. Sanchis Llopis (Universidad de Valencia and ERICES, Valencia, Spain ORCID number: 0000-0001-9664-4668)
    Abstract: In this paper we provide the first estimate of the intertemporal substitution for leisure in Spain, accounting for the impact of human capital accumulation. This would allow uncovering whether the intertemporal labour supply of Spanish workers is affected by human capital. Our empirical strategy consists of estimating the equation for the intertemporal substitution of leisure with and without accounting for human capital, what allows to detect hypothetical estimation biases associated to omitting the impact of human capital. To that end, we build a pseudo-panel data set combining the Spanish Family Expenditure Survey and the Labour Survey over the period 1987-1997. While the model that ignores human capital accumulation provides an estimate of the intertemporal elasticity of substitution for leisure about 0.25, comparable to previously available estimates for Spain and other economies, the model with human capital provides an estimate about 0.5, what confirms the existence of a bias in the former estimates. Finally, this bias is larger for the younger cohorts than for the older ones.
    Keywords: Euler equation, Instrumental variables, Intertemporal Substitution for leisure, Panel data
    JEL: C33 C36 E24 J22
    Date: 2022–09
  13. By: Aksoy, Billur (Rensselaer Polytechnic Institute); Carpenter, Christopher S. (Vanderbilt University); Sansone, Dario (University of Exeter)
    Abstract: Using a US nationally representative sample and a double list experiment designed to elicit views free from social desirability bias, we find that anti-transgender labor market attitudes are significantly underreported. After correcting for this concealment, we report that 73 percent of people would be comfortable with a transgender manager and 74 percent support employment non-discrimination protection for transgender people. We also show that respondents severely underestimate the population level of support for transgender individuals in the workplace, and we find that labor market support for transgender people is significantly lower than support for gay, lesbian, and bisexual people. Our results provide timely evidence on workplace-related views toward transgender people and help us better understand employment discrimination against them.
    Keywords: labor market discrimination, transgender people, double list experiment
    JEL: C90 J15 J71 K31
    Date: 2022–09
  14. By: Robert Grundke; Steven Cassimon
    Abstract: Unemployment rates have been persistently high, particularly for young labour market entrants. Rising access to education has increased the supply of high-skilled labour, but the private sector has mainly created jobs in low-skill intensive and low-productivity activities, leading to high unemployment rates among tertiary graduates and particularly for women. Moreover, education and professional training systems operate in isolation from labour market needs and do not equip workers with the skills demanded by firms. Labour market policies and regulations discourage formal job creation and complicate the matching process in the labour market. To foster business dynamism and innovation and create more and better jobs, it is crucial to lower regulatory barriers to market entry and entrepreneurship, raise the international integration of domestic firms and adjust labour taxes. The quality of education and professional training needs to improve, and more cooperation with the private sector is necessary to better prepare youth and young adults for the labour market. Better targeting of active labour market policies and reducing barriers to labour mobility are key to improve labour market matching.
    Keywords: business environment, education, labour demand, Labour market, skill mismatch, training, Tunisia
    JEL: I25 J08 J23 J24 J48 I28
    Date: 2022–10–10
  15. By: Aksoy, Cevat Giray (European Bank for Reconstruction and Development); Barrero, Jose Maria (Instituto Tecnológico Autónomo de México Business School); Bloom, Nicholas (Stanford University); Davis, Steven J. (University of Chicago); Dolls, Mathias (Ifo Institute for Economic Research); Zarate, Pablo (Princeton University)
    Abstract: The pandemic triggered a large, lasting shift to work from home (WFH). To study this shift, we survey full-time workers who finished primary school in 27 countries as of mid 2021 and early 2022. Our cross-country comparisons control for age, gender, education, and industry and treat the U.S. mean as the baseline. We find, first, that WFH averages 1.5 days per week in our sample, ranging widely across countries. Second, employers plan an average of 0.7 WFH days per week after the pandemic, but workers want 1.7 days. Third, employees value the option to WFH 2-3 days per week at 5 percent of pay, on average, with higher valuations for women, people with children and those with longer commutes. Fourth, most employees were favorably surprised by their WFH productivity during the pandemic. Fifth, looking across individuals, employer plans for WFH levels after the pandemic rise strongly with WFH productivity surprises during the pandemic. Sixth, looking across countries, planned WFH levels rise with the cumulative stringency of government-mandated lockdowns during the pandemic. We draw on these results to explain the big shift to WFH and to consider some implications for workers, organization, cities, and the pace of innovation.
    Keywords: work from home, preferences over working arrangements, commute times, COVID-19, productivity surprises, government lockdown effects, innovation, cities
    JEL: J2 D22 E24 L23
    Date: 2022–09
  16. By: Michiel Gerritse (Erasmus University Rotterdam); Andrea Caragliu (Politecnico di Milano)
    Abstract: With China’s 2001 WTO accession, trade costs between the US and China fell sharply, but the transport costs of Chinese imports within the US remained sizable. We argue that domestic transport costs shield local labor markets from globalization. Using a shift-share design for industry-level Chinese imports across 42 ports of entry, we show that US job losses from competing imports occurred near the ports where they arrived. Once accounting for domestic transport costs, import competition affects coastal areas more than inland areas; shows larger impacts in housing markets and indirectly affected jobs; and explains voting, mortality and family formation
    Keywords: import competition, local labor markets, trade infrastructure, China syndrome, transport costs
    JEL: E24 F14 F16 R23 J23 J31 L60 O47 R12
    Date: 2022–09–29
  17. By: Tang, Can; Zhao, Zhong
    Abstract: Using a national representative sample, the China Family Panel Studies, this paper explores the influences of clan culture, a hallmark of Chinese cultural history, on the prevalence of child labor in China. We find that clan culture significantly reduces the incidence of child labor and working hours of child laborer. The results exhibit strong boy bias, and are driven by boys rather than girls, which reflects the patrilineal nature of Chinese clan culture. Moreover, the impact is greater on boys from households with lower socioeconomic status, and in rural areas. Clan culture acts as a supplement to formal institutions: reduces the incidence of child labor through risk sharing and easing credit constraints, and helps form social norms to promote human capital investment. We also employ an instrument variable approach and carry out a series of robustness checks to further confirm the findings.
    Keywords: Informal institution,Clan culture,Child labor,China
    JEL: J22 J81 O15
    Date: 2022
  18. By: Zaiceva-Razzolini, Anzelika
    Abstract: This chapter reviews economic studies on multitasking in household production. Whereas multitasking or task juggling in the workplace has been analyzed more widely, economic literature on multitasking in a household is relatively scarce. The chapter first provides relevant measures of such multitasking activities, discusses time diary data, and presents some empirical facts employing Harmonized European Time Use Survey data. It then reviews theoretical and empirical contributions to this topic, focusing on childcare, food consumption, and remote work. It also reviews the determinants of multitasking and identifies the factors that are more likely to affect these activities. In addition, it discusses multitasking by certain groups, such as ethnic minorities and children. Finally, it offers policy implications and suggestions for future research.
    Keywords: household production,multitasking,simultaneous activities,time use
    JEL: D13 J22 J16
    Date: 2022
  19. By: Xing, Chunbing (Renmin University of China); Yuan, Xiaoyan (Shanghai University); Zhang, Junfu (Clark University)
    Abstract: Finding suitable employment in a city is more challenging for married than unmarried migrants. This paper provides empirical evidence that the denser and more diversified labor markets in large cities help alleviate the colocation problem of married couples. Using data from China, we show that the gender wage gap among married migrants is significantly smaller in larger cities, and this is mainly because large cities have higher employer and population densities. Large cities make married women more likely to be employed and to secure suitable jobs after family migration. We find no evidence for alternative explanations for the correlation between city size and married women's relative wages.
    Keywords: city size, family migration, colocation choice, gender gap
    JEL: J31 R12 R23 O15
    Date: 2022–09
  20. By: Herbst, Chris M. (Arizona State University)
    Abstract: Participation in non-parental child care arrangements is now the norm for preschool-age children in the U.S. However, child care services are becoming increasingly expensive for many families, and quality is highly uneven across providers and sectors, raising questions about the impact of child care costs and quality on parental employment and child development. The U.S. policy landscape is dominated by three policies that subsidize costs for low-income families or attempt to improve the safety and quality of providers: Child Care and Development Fund, regulations, and quality rating and improvement systems. In this paper, I provide a thorough review of the evidence on each policy, focusing on how they influence a wide range of family and provider outcomes. The paper begins with a detailed description of the structure and functioning of the child care market, using the most up-to-date data on families' utilization of care services and provider characteristics. I then draw on a diverse set of studies across multiple fields to summarize the evidence on the impact of child care policy. In the final section of the paper, I offer recommendations for future research in each policy area.
    Keywords: child care, subsidies, regulations, maternal employment, child development
    JEL: H75 I24 I38 J24
    Date: 2022–09
  21. By: Derick Almeida (Ph.D. Student at Faculty of Economics, University of Coimbra); Tiago Miguel Guterres Neves Sequeira (University of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics)
    Abstract: We reassess the relationship between robotization and the growth in productivity in the light of new data and methods. We discover that the effect of robot density in the growth productivity substantially decreased in the post- 2008 crisis period. Moreover, in this more recent period, the less strong positive effect of robot density in the growth of productivity is mostly derived from negative effect of hours worked in productivity, showing that robots lost part of their capacity to increase productivity through value-added. By means of quantile regression, we also learn that the effect of robots on labor productivity is stronger for low productivity sectors and that in the most recent period, the effect of robotization in all sectors, felt significantly throughout the distribution, with special emphasis in the most productive sectors. This highlights one of the possible sources of the secular stagnation in the era of robotization and artificial intelligence technologies.
    Keywords: Robots, Robotization, Labor Productivity, Productivity Growth, Stagnation.
    JEL: E23 J23
    Date: 2022–07
  22. By: Benjamin Ferri (Boston College)
    Abstract: Shift-Share (Bartik) instruments are among the most important tools for causal identification in economics. In this paper, I crystallize main ideas underlying Shift-Share instruments - their core structure, distinctive claim to validity as instruments, history, uses, and wealth of varieties. I argue that the essence of the Shift-Share approach is to decompose the endogenous explanatory variable into an accounting identity with multiple component parts; preserve that which is most exogenous in the accounting identity, and neutralize that which is most endogenous. Following this framework, I show clearly how several variants in the literature are related. I then develop formulas for several new variants. Particularly, I show how to develop Shift-Share instruments for distribution summaries beyond the mean - the variance, skew, absolute deviation around a central point, and Gini coefficient. As an empirical application that highlights the themes of the paper, I measure the effect of earnings inequality on rates of single parenting in the U.S., comparing results using each of various alternative instruments for the Gini coefficient.
    Keywords: shift-share, bartik, instrumental variables, panel data, labor demand and supply, earnings inequality, single parenting
    JEL: C23 C26 D31 J20 R12 R23
    Date: 2022–09–27
  23. By: Julien Silhol; Lionel Wilner
    Abstract: This paper exploits a 2018 reform of teachers’ financial incentives to work in some French disadvantaged schools. Based on this quasi-natural experiment, it evaluates the impact of those incentives on teachers’ stated preferences to move to such schools. Using data from the internal human resource management of some educational authority, we find that most responsive teachers have less experience and work already in those areas. Counterfactual simulations suggest that the policy has not hurt other disadvantaged schools, but rather induced some teachers not to remain in their current school or to opt less for regular schools.
    Keywords: teacher mobility, financial incentives, stated preferences, rank-ordered choices, disadvantaged schools
    JEL: I21 I22 J45
    Date: 2022

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