nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2023‒05‒08
twenty-two papers chosen by
Joseph Marchand
University of Alberta

  1. Mismatch in Preferences for Working from Home – Evidence from Discrete Choice Experiments with Workers and Employers By Lewandowski, Piotr; Lipowska, Katarzyna; Smoter, Mateusz
  2. The Impact of a Minimum Wage Increase on Hours Worked: Heterogeneous Effects by Gender and Sector By Redmond, Paul; McGuinness, Seamus
  3. Occupations Shape Retirement across Countries By Philip Sauré; Arthur Seibold; Elizaveta Smorodenkova; Hosny Zoabi
  4. Can Workers Still Climb the Social Ladder as Middling Jobs Become Scarce? Evidence from Two British Cohorts By Cecilia Garcia-Peñalosa; Fabien Petit; Tanguy van Ypersele
  5. Transitory Earnings Opportunities and Educational Scarring of Men By Sigurdsson, Jósef
  6. Overconfidence and Gender Equality in the Labor Market By Spencer Bastani; Thomas Giebe; Oliver Gürtler
  7. Bringing Them In or Pushing Them Out? The Labor Market Effects of Pro-cyclical Unemployment Assistance Changes By Gerard Domènech-Arumí; Silvia Vannutelli
  8. LOCAL LABOUR TASKS AND PATENTING IN US COMMUTING ZONES By Marialuisa Divella; Alessia Lo Turco; Alessandro Sterlacchini
  9. Measuring skill gaps in firms: the PIAAC Employer Module By Glenda Quintini; Luca Marcolin
  10. Where Have All the "Creative Talents" Gone? Employment Dynamics of US Inventors By Ufuk Akcigit; Nathan Goldschlag
  11. Working from Home, COVID-19 and Job Satisfaction By Laß, Inga; Vera-Toscano, Esperanza; Wooden, Mark
  12. The Decline of Routine Tasks, Education Investments, and Intergenerational Mobility By Patrick Bennett; Kai Liu; Kjell Salvanes
  13. Local and National Concentration Trends in Jobs and Sales: The Role of Structural Transformation By David Autor; Christina Patterson; John Van Reenen
  14. Robots at work: new evidence with recent data By Almeida, Derick; Sequeira, Tiago
  15. The Independent Contractor Workforce: New Evidence on Its Size and Composition and Ways to Improve Its Measurement in Household Surveys By Katharine G. Abraham; Brad Hershbein; Susan N. Houseman; Beth C. Truesdale
  16. The Economic Effect of Gaining a New Qualification Later in Life By Finn Lattimore; Daniel M. Steinberg; Anna Zhu
  17. Estimating Vacancy Stocks from Aggregated Data on Hires: A Methodology to Study Frictions in the Labor Market By Leonardo Fabio Morales; Eleonora Dávalos; Raquel Zapata
  18. The Evolution of Inequality of Opportunity in Europe By Stefano Filauro; Flaviana Palmisano; Vito Peragine
  19. Africa's Industrialization Prospects: A Fresh Look By Naudé, Wim; Tregenna, Fiona
  20. Ready for School? Effects on School Starters of Establishing School Psychology Offices in Norway By Martin Flatø; Bernt Bratsberg; Andreas Kotsadam; Fartein Ask Torvik; Ole Røgeberg; Camilla Stoltenberg
  21. Living wages in context: A comparative analysis for OECD countries By Carlotta Balestra; Donald Hirsch; Daniel Vaughan
  22. Impact of Retirement on Health: Evidence from 35 Countries By Koryu Sato; Haruko Noguchi

  1. By: Lewandowski, Piotr (Institute for Structural Research (IBS)); Lipowska, Katarzyna (Institute for Structural Research (IBS)); Smoter, Mateusz (Institute for Structural Research (IBS))
    Abstract: We study workers' and employers' preferences for remote work, estimating the willingness to pay for working from home (WFH) using discrete choice experiments with more than 10, 000 workers and more than 1, 500 employers in Poland. We selected occupations that can be done remotely and randomised wage differences between otherwise identical home- and office-based jobs, and between otherwise identical job candidates, respectively. We find that demand for remote work was substantially higher among workers than among employers. On average, workers would sacrifice 2.9% of their earnings for the option of remote work, especially hybrid WFH for 2-3 days a week (5.1%) rather than five days a week (0.6%). However, employers, on average, expect a wage cut of 21.0% from candidates who want to work remotely. This 18 pp gap in the valuations of WFH reflects employers' assessments of productivity loss associated with WFH (14 pp), and the additional effort required to manage remote workers (4 pp). Employers' and workers' valuations of WFH align only in 25-36% of firms with managers who think that WFH is as productive as on-site work.
    Keywords: working from home, remote work, discrete choice experiment, willingness to pay
    JEL: J21 J31 J81
    Date: 2023–03
  2. By: Redmond, Paul (ESRI, Dublin); McGuinness, Seamus (Economic and Social Research Institute, Dublin)
    Abstract: A minimum wage increase could lead to adverse employment effects for certain sub-groups of minimum wage workers, while leaving others unaffected. This heterogeneity could be overlooked in studies that examine the overall population of minimum wage workers. In this paper, we test for heterogeneous effects of a minimum wage increase on the hours worked of minimum wage employees in Ireland. For all minimum wage workers, we find that a ten percent increase in the minimum wage leads to a one-hour reduction in weekly hours worked, equating to an hours elasticity of approximately -0.3. However, for industry workers and those in the accommodation and food sector, the impact is larger, with an elasticity of -0.8. We also find a negative impact on the hours worked among men on minimum wage, with no significant effect for women. In line with suggestions from the recent literature, our study uses administrative wage data to accurately identify those in receipt of minimum wage, while also studying the dynamic impact on hours worked over multiple time periods using a fully flexible difference-in-differences estimator.
    Keywords: minimum wages, heterogeneous effects, flexible difference-in-difference
    JEL: E24 J22 J23 J31 J42
    Date: 2023–03
  3. By: Philip Sauré; Arthur Seibold; Elizaveta Smorodenkova; Hosny Zoabi
    Abstract: We study how occupations shape individual and aggregate retirement behavior. First, we document large differences in individual retirement ages across occupations in U.S. data. We then show that retirement behavior among European workers is strongly correlated with U.S. occupational retirement ages, indicating an inherent association between occupations and retirement that is present across institutional settings. Finally, we find that occupational composition is highly predictive of aggregate retirement behavior across 45 countries. Our findings suggest that events affecting occupational structure, such as skill-biased technological change or international trade, have consequences for aggregate retirement behavior and social security systems.
    Keywords: retirement, occupational distribution, cross-country analysis
    JEL: E24 H55 J14 J24 J26 J82
    Date: 2023
  4. By: Cecilia Garcia-Peñalosa; Fabien Petit; Tanguy van Ypersele
    Abstract: The increase in employment polarization observed in several high-income economies has coincided with a reduction in inter-generational mobility. This paper argues that the disappearance of middling jobs can drive changes in mobility, notably by removing a stepping stone towards high-paying occupations for those from less well-off family backgrounds. Using data from two British cohorts who entered the labour market at two points in time with very different degrees of employment polarization, we examine how parental income affects both entry occupations and occupational upgrading over careers. We find that transitions across occupations are key to mobility and that the impact of parental income has grown over time. At regional level, using a shift-share IV-strategy, we show that the impact of parental income has increased the most in regions experiencing the greatest increase in polarisation. This indicates that the disappearance of middling jobs played a role in the observed decline in mobility.
    Keywords: British cohort, inter-generational mobility, job polarization, parental income, occupational transition
    JEL: J21 J24 J62 O33 R23
    Date: 2023
  5. By: Sigurdsson, Jósef (Stockholm University)
    Abstract: Men have fallen behind women in education in developed countries. Why? I study the impact of a transitory increase in the opportunity cost of schooling on men's and women's educational attainment. I exploit a reform in Iceland that lowered income taxes to zero for one year and compare teenagers above and below the compulsory schooling age. This earnings opportunity increased the dropout rate and led to a permanent loss in years of education for young men, but had no effect on the education of women. Male dropouts suffer substantial losses in lifetime earnings, slow career progression, and reduced marriage and fertility outcomes. The results cannot be explained by negative selection of dropouts or low returns to education but can be reconciled by gender differences in nonpecuniary costs of school attendance, myopia, or perceived returns to education. The findings suggest that due to these gender differences, economic booms misallocate young men away from school, entrenching the gender gap in education.
    Keywords: educational attainment, opportunity cost, gender gap, labor supply, tax reform
    JEL: H24 I21 I26 J16 J24
    Date: 2023–03
  6. By: Spencer Bastani; Thomas Giebe; Oliver Gürtler
    Abstract: Gender differences in overconfidence have been extensively documented in the empirical literature, but the implications for labor market outcomes are not well understood. In this paper, we analyze how men’s relatively higher overconfidence, combined with competitive job incentives, affects gender equality in the labor market and discuss policy implications. The vehicle of analysis is a promotion-signaling model in which wages are realistically determined by market forces. We find that overconfident workers exert more effort to be promoted, and even though they have lower expected ability conditional on promotion, they are more likely to be promoted and experience superior wage growth. Because overconfident workers compete fiercely, they incur higher effort costs and discourage their peers, and we find that overconfidence can be either self-serving or self-defeating.
    Keywords: overconfidence, promotion, competition, gender gap, tournament, theory
    JEL: C72 D91 J16 J24 M51 M52
    Date: 2023
  7. By: Gerard Domènech-Arumí; Silvia Vannutelli
    Abstract: We exploit an unanticipated labor market reform to estimate the effects of procyclical changes in long-term unemployment assistance (UA). In July 2012, Spain raised the minimum age to receive unlimited-duration UA from 52 to 55. Using a difference-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 wages upon re-employment. The reform induced moderate government savings. Our resultshighlight the importance of considering the interplay with labor market conditions when designing long-term beneffit schedules that affect workers close to retirement.
    Date: 2023–04
  8. By: Marialuisa Divella (Department of Political Sciences, Universita' degli Studi di Bari); Alessia Lo Turco (Department of Economics and Social Sciences, Universita' Politecnica delle Marche (UNIVPM)); Alessandro Sterlacchini (Department of Economics and Social Sciences, Universita' Politecnica delle Marche (UNIVPM))
    Abstract: In this paper we adopt a task approach to measure the local pool of capabilities which can more effectively spur innovation. By focusing on the core activities that workers undertake in their jobs, we build an abstract task intensity measure of occupations to proxy the ability in analysing and solving complex problems, as well as in coordinating and integrating people with different knowledge endowments, that should be especially relevant for the process of invention and innovation. We thus estimate the relationship between the local abstract intensity and the inventive performance, proxied by granted patents, of US Commuting Zones during the period 2000-2015. The evidence provided, robust to a wide array of sensitivity checks, points to the extent of workers’ engagement in abstract tasks across Commuting Zones as a crucial determinant of the local inventive activity.
    Keywords: human capital, labour tasks, local abstract intensity, patents, US Commuting Zones
    JEL: R10 R12 O31 O33
    Date: 2023–04
  9. By: Glenda Quintini; Luca Marcolin
    Abstract: This paper introduces the Employer Module of the OECD Survey of Adult Skills (PIAAC), a new OECD survey designed to measure the imbalance between the supply of and demand for the skills needed in the workplace (skill gaps), and how this relates to companies’ business strategy and hiring, training and human resource practices. The document first describes the added value of collecting such data, and the different streams of economic research it can contribute to. It then shows how the Module can complement worker-level information on skill imbalances collected in the OECD Survey of Adult Skills. Lastly, it presents the key technical features of the survey, including the questionnaire’s conceptual development, the units of observation and coverage, the mode of administration, and the requirements for data cleaning and validation.
    JEL: C81 C83 J24 L23 M5
    Date: 2023–04–24
  10. By: Ufuk Akcigit; Nathan Goldschlag
    Abstract: How are inventors allocated in the US economy and does that allocation affect innovative capacity? To answer these questions, we first build a model of creative destruction where an inventor with a new idea has the possibility to work for an entrant or incumbent firm. If the inventor works for the entrant the innovation is implemented and the entrant displaces the incumbent firm. Strategic considerations encourage the incumbent to hire the inventor, offering higher wages, and then not implement the inventor's idea. To test this prediction, we combine data on the employment history of over 760 thousand U.S. inventors with information on jobs from the Longitudinal Employer-Household Dynamics (LEHD) Program at the U.S. Census Bureau. Our results show that (i) inventors are increasingly concentrated in large incumbents, less likely to work for young firms, and less likely to become entrepreneurs, and (ii) when an inventor is hired by an incumbent, compared to a young firm, their earnings increases by 12.6 percent and their innovative output declines by 6 to 11 percent. We also show that these patterns are robust and not driven by life cycle effects or occupational composition effects.
    JEL: O3 O4
    Date: 2023–03
  11. By: Laß, Inga (Bundesinstitut für Bevölkerungsforschung (BiB)); Vera-Toscano, Esperanza (University of Melbourne); Wooden, Mark (Melbourne Institute of Applied Economic and Social Research)
    Abstract: This paper examines the impact of the growth in the incidence of working from home during the COVID-19 pandemic on workers' job satisfaction. Using longitudinal data collected in 2019 and 2021 as part of the Household, Income and Labour Dynamics in Australia (HILDA) Survey, fixed-effects models of job satisfaction are estimated. Changes in the share of total weekly work hours usually worked from home are not found to have any significant association with changes in job satisfaction for men. In contrast, a strong significant positive (but non-linear) association is found for women, and this relationship is concentrated on women with children. These findings suggest the main benefit of working from home for workers arises from the improved ability to combine work and family responsibilities, something that matters more to women given they continue to shoulder most of the responsibility for house and care work.
    Keywords: working from home, telework, job satisfaction, COVID-19, HILDA Survey, gender, work-family balance
    JEL: J22 J28
    Date: 2023–03
  12. By: Patrick Bennett (University of Liverpool); Kai Liu (University of Cambridge); Kjell Salvanes (Norwegian School of Economics)
    Abstract: How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in education investments of high school students, where they invest less in vocational-trades education and increasingly invest in college education. Our results highlight that labor demand changes impact inequality in the next generation. Low-ability and low-SES students are most responsive to task-biased demand changes and, as a result, intergenerational mobility in college education increases.
    Keywords: Local labor markets, routine tasks, task-biased demand change, human capital, college, intergenerational mobility
    JEL: I24 J23 J24 J62
    Date: 2023–03
  13. By: David Autor; Christina Patterson; John Van Reenen
    Abstract: National industrial concentration in the U.S. has risen sharply since the early 1980s, but there remains dispute over whether local geographic concentration has followed a similar trend. Using near population data from the Economic Censuses, we confirm and extend existing evidence on national U.S. industrial concentration while providing novel evidence on local concentration. We document that the Herfindhahl index of local employment concentration, measured at the county-by-NAICS six-digit-industry cell level, fell between 1992 and 2017 even as local sales concentration rose. The divergence between national and local employment concentration trends is attributable to the structural transformation of U.S. economic activity: both sales and employment concentration rose within industry-by-county cells; but reallocation of sales and employment from relatively concentrated Manufacturing industries (e.g., steel mills) towards relatively un-concentrated Service industries (e.g. hair salons) reduced local concentration. A stronger between-sector shift in employment relative to sales drove the net fall in local employment concentration. Holding industry employment shares at their 1992 level, average local employment concentration would have risen by about 9% by 2017. Instead, it fell by 5%. Falling local employment concentration may intensify competition for recent market entrants. Simultaneously, rising within industry-by-geography concentration may weaken competition for incumbent workers who have limited sectoral mobility. To facilitate analysis, we have made data on these trends available for download.
    JEL: E23 J42 L10 L11 L22 R11 R12
    Date: 2023–04
  14. By: Almeida, Derick; Sequeira, Tiago
    Abstract: We reassess the relationship between robotization and the growth in labor productivity with more recent data. We discover that the effect of robot density in the growth productivity substantially decreased in the post-2008 period. In this period, the lower positive effect of robot density in the growth of labor productivity is less dependent on the increase in value added. The data analysis dismisses any positive effect of robotization on hours worked. Results are confirmed by several robustness checks, cross-sectional (and panel-data) IV and quantile regression analysis. By means of the quantile regression analysis, we 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 felt significantly throughout the distribution. This highlights one of the possible sources of stagnation in the era of robotization and have implication both for labor market and R&D policies.
    Keywords: New General Purpose Technologies, Robotization, Labor Productivity, Productivity Growth, Stagnation
    JEL: E23 J23 O30
    Date: 2023
  15. By: Katharine G. Abraham (University of Maryland); Brad Hershbein (W.E. Upjohn Institute for Employment Research); Susan N. Houseman (W.E. Upjohn Institute for Employment Research); Beth C. Truesdale (W.E. Upjohn Institute for Employment Research)
    Abstract: Good data on the size and composition of the independent contractor workforce are elusive, with household survey and administrative tax data often disagreeing on levels and trends. We carried out a series of focus groups to learn how self-employed independent contractors speak about their work. Based on these findings, we designed and fielded a large-scale telephone survey to elicit more accurate and complete information on independent contractors, including those who may be coded incorrectly as employees in conventional household survey data and those who are independent contractors in a secondary work activity. We find that, upon probing, roughly one in 10 workers who initially reports working for an employer on one or more jobs (and thus is coded as an employee) is in fact an independent contractor on at least one of those jobs. Incorporating these miscoded workers into estimates of work arrangement on the main job nearly doubles the share who are independent contractors, to about 15 percent of all workers. Young workers, less-educated workers, workers of color, multiple-job holders, and those with low hours are more likely to be miscoded. Taking these workers into account substantively changes the demographic profile of the independent contractor workforce. Our research indicates that probing in household surveys to clarify a worker’s employment arrangement and identify all low-hours work is critical for accurately measuring independent contractor work.
    Keywords: independent contractor, self-employment, work arrangements, survey design, miscoding, secondary work
    JEL: C83 J41 J46 L24 M55
    Date: 2023–02
  16. By: Finn Lattimore; Daniel M. Steinberg; Anna Zhu
    Abstract: Pursuing educational qualifications later in life is an increasingly common phenomenon within OECD countries since technological change and automation continues to drive the evolution of skills needed in many professions. We focus on the causal impacts to economic returns of degrees completed later in life, where motivations and capabilities to acquire additional education may be distinct from education in early years. We find that completing and additional degree leads to more than \$3000 (AUD, 2019) per year compared to those who do not complete additional study. For outcomes, treatment and controls we use the extremely rich and nationally representative longitudinal data from the Household Income and Labour Dynamics Australia survey is used for this work. To take full advantage of the complexity and richness of this data we use a Machine Learning (ML) based methodology to estimate the causal effect. We are also able to use ML to discover sources of heterogeneity in the effects of gaining additional qualifications, for example those younger than 45 years of age when obtaining additional qualifications tend to reap more benefits (as much as \$50 per week more) than others.
    Date: 2023–04
  17. By: Leonardo Fabio Morales; Eleonora Dávalos; Raquel Zapata
    Abstract: We develop a methodology that recovers an estimate of the average stock of vacancies using the information on aggregated hires. We show that our prediction of the vacancy stock is unbiased, and it captures well the level and the dynamics of the United States job opening positions reported in the Job Openings and Labor Turnover Survey. We use the methodology to predict vacancies in Colombia for formal and informal salaried workers; together with unemployment, we estimate Beveridge curves and matching functions by occupations, which allows us to study the nature of the efficiency, frictions, and mismatches for different occupations. We find that the formal labor market of technicians is the most inefficient of them all; this inefficiency comes from the mismatch between the abilities of the workers and the requirement of the vacancies. Reducing friction in this occupation will require education and job-oriented training policies. In contrast, the frictions in the market for unskilled workers come from informational lacks. The reductions of friction, in this case, will come from better intermediation and active search policies. **** RESUMEN: Este trabajo desarrolla una metodología de estimación del stock vacantes a partir de información de contrataciones agregadas. Mostramos que nuestra predicción es consistente en la medida que captura el nivel y la dinámica de las vacantes recolectadas en la Encuesta de Vacantes y Rotación Laboral (JOLTS) en los Estados Unidos. Como una aplicación de la metodología, el trabajo predice las vacantes en Colombia para trabajadores asalariados formales e informales. Posteriormente se estiman curvas de Beveridge y funciones de emparejamiento por ocupaciones, lo que permite estudiar la naturaleza de la eficiencia, las fricciones y los desajustes para los sub-mercados laborales de diferentes ocupaciones. Se encuentra que el mercado laboral formal de técnicos es el más ineficiente de todos; esta ineficiencia proviene del desajuste entre las capacidades de los trabajadores y el requerimiento de las vacantes. Reducir la fricción en esta ocupación requerirá políticas de educación y formación orientadas al trabajo. En cambio, las fricciones en el mercado de trabajadores no calificados provienen de carencias de información. Las reducciones de fricciones, en este caso, vendrán de mejores políticas de intermediación y búsqueda activa.
    Keywords: Vacantes, demanda laboral, fricciones, Vacancies, labor demand, labor market frictions
    JEL: J60 J63 J23
    Date: 2023–04
  18. By: Stefano Filauro (Bocconi University); Flaviana Palmisano (Sapienza University of Rome); Vito Peragine (University of Bari)
    Abstract: This paper analyses the effect of inherited individual circumstances such as gender, family background, birth location on individual earnings in Europe. By using three waves of the EU Statistics on Income and Living Conditions (2005, 2011, 2019) we study the extent, the evolution, and the sources of inequality of opportunity in labour income in 27 European countries. We provide both country-specific estimates and a novel, pan-European analysis, in which the European Union is treated as a single entity and the country of birth is used as additional individual circumstance. The cross-country analysis reveals that on average about 40 per cent of earnings inequality is explained by pre-determined circumstances, although the data reveal some degree of heterogeneity, both in terms of levels and trends. Gender and parental education emerge as the most relevant circumstances in most countries. Pan-European inequality of opportunity, estimated through a multilevel model, appears much higher than any other country specific estimates: in the last wave about 60 per cent of total earnings inequality is explained by circumstances, although there has been a clear decreasing trend in the last 15 years, showing a sharp process of convergence within Europe.
    Keywords: inequality, equality of opportunity, earnings, labour market, Europe
    JEL: D31 D63 J31 O15
    Date: 2023–04
  19. By: Naudé, Wim (RWTH Aachen University); Tregenna, Fiona (University of Johannesburg)
    Abstract: This paper identifies the determinants of industrialization in 18 African countries, 1965 to 2018, using various estimators and applying a battery of robustness checks. Industrialization in Africa is driven by historical legacies such as colonialism; geographical factors such as rainfall and distance from international markets; economic factors such competition from China, market size and urbanization; and technological factors such as digital technology adoption. An inverse U-shape relationship between industrialization and GDP per capita is consistent with (premature) de-industrialization. Technological change and adoption of digital technologies are found to have an ambiguous relationship with industrialisation in Africa. The establishment of the AfCFTA is timely, but its benefits will only be realised if countries also improve infrastructure to overcome the negative consequences of adverse geography, improve trade facilitation to exploit learning-by-exporting from intra-African trade, and facilitate urbanization.
    Keywords: industrialization, development, employment, technology, trade, Africa
    JEL: O47 O33 J24 E21 E25
    Date: 2023–03
  20. By: Martin Flatø; Bernt Bratsberg; Andreas Kotsadam; Fartein Ask Torvik; Ole Røgeberg; Camilla Stoltenberg
    Abstract: We consider long-term impacts of establishing school psychology offices in Norway, which introduced ‘maturity testing’ to advice parents and school boards on school starting age. In the early reform period, children born close to the normative age cut-off who reached school-starting age after the establishment were more likely to finish compulsory schooling late, and experienced higher earnings as adults. When offices were instead able to block delayed school entry after a legislative change, having an office in operation led to a reduction in the likelihood of late graduation for the youngest children in each cohort, and no long-term benefits.
    Keywords: school psychology, maturity, school readiness, redshirting, school starting age, Norway
    JEL: I21 I24 I26 I28 J24 N34
    Date: 2023
  21. By: Carlotta Balestra; Donald Hirsch; Daniel Vaughan
    Abstract: At a time of rising cost of living, wide wage inequalities and widespread in-work poverty, the demand for a living wage has heightened. The concept of a “living wage” has some limitations, including that it is operationalised in a variety of ways. This variety may serve the purpose of making it a more relevant instrument, typically by providing information on the cost of living that firms and social partners may embed in their wage-setting processes; however, the variety can also increase a lack of transparency. The paper reviews some of the most common methodologies, by identifying points of convergence and divergence. Living wage estimates produced by the Fair Wage Network are then put into context by benchmarking them against internationally comparable wage metrics and poverty lines. Finally, the paper presents a number of critical steps to strengthen the concept of a living wage. This paper does not assess the economic cost or feasibility of living wages, not at the firm level or at the broader industry and economy level. This paper advises using the living wage as one of the pieces of information that – when properly contextualised – could inform wage negotiations and wage policies set in consultation with social partners.
    Keywords: living wages, minimum wages, poverty lines, wage levels
    JEL: E21 E31 J31 I32
    Date: 2023–04–24
  22. By: Koryu Sato (Department of Social Epidemiology, Graduate School of Medicine and School of Public Health, Kyoto University); Haruko Noguchi (Graduate School of Economics, Waseda University)
    Abstract: This study aimed to explore the impact of retirement on health through the application of a fixed effects instrumental variable model to harmonized longitudinal data obtained from 35 countries. Women exhibited improved cognitive function, physical independence, and self-rated health after retirement. Consistently, retirement was associated with reduced physical inactivity and smoking among women, which was not observed among men. Sex differences in post-retirement health behaviors may induce heterogeneous effects on health. Given the current global trend of increasing state pension age, the promotion of healthy behaviors could mitigate potential adverse effects of delayed retirement on health.
    JEL: I10 J26 C26
    Date: 2023–04

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