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on Labor Markets - Supply, Demand, and Wages |
| By: | Palmer, Thomas |
| Abstract: | This paper establishes that the rise in employer-provided training due to technological change has dampened the college wage premium. Using unique survey micro-data, I show that hightechnology firms provide more training overall, but the gap in training participation between high- and low-skill workers is smaller within these firms. To understand the aggregate implications of these patterns, I build a quantitative model of the labor market with endogenous technology and training investments. In a counterfactual exercise, I find that the increase in the college wage premium would be 63 percent greater if training costs remained constant between 1980 and the early 2000s. |
| Keywords: | Training, Technological Change, College Wage Premium, Education, Technology |
| JEL: | E24 I24 J24 J31 M53 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:clefwp:300865 |
| By: | Cnossen, Femke; Nikolova, Milena |
| Abstract: | Self-determination theory posits that individuals are motivated at work when their inherent psychological needs for competence, autonomy, and relatedness are satisfied. Drawing on this theory, this paper presents a new conceptual model explaining how work meaningfulness influences effort at work. In our model, motivation decreases the disutility of exerting effort and paves the way for experiencing meaningful work, which, in turn, boosts effort. We find empirical support for our model's propositions using new data from the Dutch LISS panel. Specifically, work meaningfulness is positively associated with effort. We also show that selfdetermination enhances work meaningfulness, especially for individuals experiencing high levels of competence, autonomy, and relatedness. Overall, our findings suggest that satisfying workers' psychological needs from working enhances work meaningfulness, motivation, and effort, providing valuable insights for economic models of effort and productivity. |
| Keywords: | Meaningful work, Motivation, Non-monetary benefits of work, Labor market outcomes, Self-determination theory |
| JEL: | J01 J30 J32 J81 I30 I31 M50 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1476 |
| By: | Teevrat Garg; Maulik Jagnani; Elizabeth Lyons |
| Abstract: | Despite the increasing importance of occupations that rely heavily on interpersonal interaction, the impact of heat on team production relative to individual production remains largely unexplored. Heat can affect team and individual production in distinct ways, potentially increasing aggression, thereby complicating team coordination. Conversely, teams may counteract the productivity effects of heat through mutual support strategies, such as sharing tasks, identifying mistakes, or encouragement. We randomly assign programmers to either pair up in teams of two or work independently on a coding task, under either warm (29◦C) or control (24◦C) conditions. Our findings reveal two key insights: (1) Individuals working on coding tasks in warm environments perform comparably to those in control environments. However, teams working in warm conditions significantly underperform relative to teams in control settings. (2) The adverse effects of heat are particularly pronounced in mixed-gender teams and teams with differences in semester-standing, indicating that heat may intensify issues related to coordination and communication within heterogenous teams. Surveys confirm these patterns, with heterogenous teams in warm settings reporting lower partner assessments and a higher desire to switch partners for future tasks. |
| Keywords: | team production, heat stress, labor productivity |
| JEL: | J24 Q54 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11219 |
| By: | Yosuke Jin; Andrea-Rosalinde Hofer |
| Abstract: | Egypt’s working age population is set to expand substantially, with a rising education level, making for growth opportunities. However, employment ratios have trended down, while informality has become increasingly prevalent, particularly penalising the youth. Such trends should be reversed by creating more and better-quality jobs, thereby better integrating people into the labour market, in particular the youth. Easing rigid market regulations would boost productivity and promote formal job creation. High labour costs should be reduced, which would also bring a larger share of the working age population into formal employment. At the same time, social protection and worker support should be expanded to address labour market insecurity and obstacles to labour force participation. Education is also key to foster productivity growth and formal jobs. Ongoing reforms, notably the National Structural Reform Programme, aim at developing skills, promoting female labour force participation and expanding social benefit programmes. These important initiatives should be complemented by additional policy measures to ensure sufficient job creation and improve job quality, thereby durably raising living standards for all and improving employment prospects especially for younger generations. |
| Keywords: | education, skills, female labour force participation, informality, Job creation, job quality, labour market regulation, social protection, social security system, youth employment |
| JEL: | E24 E26 I20 I30 J30 J60 |
| Date: | 2024–08–09 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1814-en |
| By: | Juergen Jung (Department of Economics, Towson University); Vinish Shrestha (Department of Economics, Towson University) |
| Abstract: | We use an overlapping generations model with labor supply decisions, health risk, and health insurance choices to investigate the impact of proposed work requirements for Medicaid eligibility. Calibrating the model to US data, we simulate counterfactual experiments with a minimum weekly work hours requirement. Our partial and general equilibrium results indicate that Medicaid work requirements increase labor force participation, reduce hours worked, and boost output. However, most scenarios show overall welfare losses, mitigated somewhat by general equilibrium effects. Welfare losses are higher among low-income households, smaller for middle-income households, and result in gains for high-income households. The smallest welfare loss occurs when the reform targets healthy individuals, allowing sicker individuals to remain on Medicaid regardless of their work status. |
| Keywords: | The Patient Protection and Affordable Care Act (ACA), Medicaid expansion, Labor supply, Labor market distortions, Health risk. |
| JEL: | H51 I13 I14 I38 J21 D58 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:tow:wpaper:2024-10 |
| By: | Andres, Raphaela; Niebel, Thomas; Sack, Robin |
| Abstract: | Until today, the question of how digitalisation and, in particular, individual digital technologies affect productivity is still the subject of controversial debate. Using administrative firm-level data provided by the Dutch and the German statistical offices, we investigate the economic importance of data, in particular, the effect of the application of big data analytics (BDA) on labour productivity (LP) at the firm level. We find that a simple binary measure indicating the mere usage of BDA fails to capture the effect of BDA on LP. In contrast, measures of BDA intensity clearly show a positive and statistically significant relationship between BDA and LP, even after controlling for a firm's general digitalisation level. |
| Keywords: | big data analytics, productivity, administrative firm-level data |
| JEL: | L25 O14 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300678 |
| By: | D'Al, Francesco; Santarelli, Enrico; Vivarelli, Marco |
| Abstract: | In this paper we integrate the insights of the Knowledge Spillover Theory of Entrepreneurship and Innovation (KSTE+I) with Schumpeter's idea that innovative entrepreneurs creatively apply available local knowledge, possibly mediated by Marshallian, Jacobian and Porter spillovers. In more detail, in this study we assess the degree of pervasiveness and the level of opportunities brought about by AI technologies by testing the possible correlation between the regional AI knowledge stock and the number of new innovative ventures (that is startups patenting in any technological field in the year of their foundation). Empirically, by focusing on 287 Nuts-2 European regions, we test whether the local AI stock of knowledge exerts an enabling role in fostering innovative entry within AI-related local industries (AI technologies as focused enablers) and within non AI-related local industries, as well (AI technologies as generalised enablers). Results from Negative Binomial fixed-effect and Poisson fixed-effect regressions (controlled for a variety of concurrent drivers of entrepreneurship) reveal that the local AI knowledge stock does promote the spread of innovative startups, so supporting both the KSTE+I approach and the enabling role of AI technologies; however, this relationship is confirmed only with regard to the sole high-tech/AI-related industries. |
| Keywords: | KSTE+I, Artificial Intelligence, innovative entry, enabling technologies |
| JEL: | O33 L26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1473 |
| By: | Bonfim, Diana; Nogueira, Gil |
| Abstract: | We analyze how corporate reorganization and liquidation change labor reallocation during bankruptcy using randomized judge assignments and linked Portuguese employer-employee and firm data. Reorganization reduces the negative effect of bankruptcy on employee earnings, even with most workers leaving reorganized firms. We examine plausible mechanisms and find evidence that the retention of general skills and improved job-match quality contribute meaningfully to this effect. The average cost of labor misallocation caused by reorganization is small. However, for some workers in the least productive filers, this cost can be large, outweighing the effect on earnings. JEL Classification: G33, G38, J24, J63, K39 |
| Keywords: | bankruptcy, corporate reorganization |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242974 |
| By: | Falck, Elisabeth; Röhe, Oke; Strobel, Johannes |
| Abstract: | In recent years, there has been a controversial debate on how the rapid diffusion of digital technologies affects labour productivity in advanced economies. Using a multi-sector dynamic general equilibrium model, we show that cumulative labour productivity growth in the United States, Germany and France over the period from 1996 to 2020 would have been about half as high without the efficiency gains from the sectors producing digital goods - despite their relatively small size in terms of gross value added. This is not only because TFP growth in the digital sectors is exceptionally high, but also because other sectors benefit from these efficiency improvements via production linkages. |
| Keywords: | dynamic general equilibrium model, sectoral linkages, production network, digitalisation |
| JEL: | E17 E23 E24 O33 O41 O47 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:300703 |
| By: | Rosa Sanchis-Guarner; Nikodem Szumilo; Antoine Vernet |
| Abstract: | We study the impact of improved rail access on entrepreneurship rates in England and Wales. We use data from the Census spanning 2001, 2011, and 2021 to analyse self-employment rates in granular geographic areas of around 200 residents. Specifically, we study how they respond to changes in the distance to the nearest train station occurring due to 56 new station openings. We find that all else equal, moving 1 km further away from a station reduces self-employment rates by 0.12 percentage points, with the effect dissipating beyond 7 km. Secondary results suggest that access to rail makes it easier to become self-employed while not making it more attractive compared to employment. Our findings suggest that rail infrastructure improvements can support local entrepreneurship and economic activity, contributing to regional development and reducing economic inequality. |
| Keywords: | entrepreneurship, rail, self-employment |
| JEL: | L26 O18 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11227 |
| By: | Aner Sela (BGU); Ishay Rabi (BGU); Chen Cohen (BGU) |
| Keywords: | Parallel contests; reputation; heterogenous agents, non-linear e ort costs |
| JEL: | D44 D72 D82 J31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bgu:wpaper:2409 |
| By: | Mercedes Campi; Masayasu Asai; Jonathan McFadden; Emilio Pindado; Alicia Rosburg |
| Abstract: | New entrants into agriculture are critical for the transformation of food systems. New entrants in OECD countries are younger, have higher levels of education and entrepreneurial skills, and are more likely to adopt new technologies than those already working in the sector. Yet, negative perceptions of farming, limited access to capital and land, lower access to services and regulatory complexities can all deter the entry to the sector. Digital technologies can make agriculture more attractive by reducing arduous tasks and health risks, enhancing working conditions, and supporting on-farm income diversification. Foresight analysis of macro trends and challenges to a digitalised, sustainable and inclusive future can be a useful tool to help anticipate farmer skills needs and transform mindsets. Governments can facilitate new entrants in agriculture, including by investing in human capital, improving digital infrastructure services, promoting innovation systems and removing barriers to entry. |
| Keywords: | Agricultural entrepreneurs, Agricultural innovation, Barriers to entry, Generational renewal |
| JEL: | O13 Q12 Q15 Q16 O33 |
| Date: | 2024–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:oec:agraaa:209-en |
| By: | Fazio, Andrea; Giaccherini, Matilde |
| Abstract: | Building on social identity theory, we suggest that natives from stereotyped groups tend to value cultural distance more and think that immigrants are not good for the economy and the fiscal system. We draw upon research showing that overweight and obese individuals suffer from social stigma and discrimination and we investigate the relationship between high body mass and attitudes toward immigrants in Europe. We exploit the appointment of the Belgian Minister of Health to provide causal evidence that stigmatization and stereotyping contribute to negative attitudes toward immigrants. Furthermore, a survey experiment shows that individuals with a higher body mass index prioritize cultural factors over economic ones when facing immigrants. |
| Keywords: | Attitudes toward Immigrants, Social Identity Theory, Stigma |
| JEL: | J14 J15 J71 Z1 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1470 |
| By: | Timmermans, Oscar |
| Abstract: | This study examines the risk-taking properties associated with incentive plans that use relative performance evaluation, with a focus on the form of payout, whether in cash or shares. By analyzing determinants and consequences of payout form choice, I find that share-based plans offer risk-averse managers weaker incentives to pursue projects with idiosyncratic risk compared to cash plans. This occurs because share plans—unlike cash plans—expose managers to systematic performance trends, as payout values are linked to stock prices. Additionally, I document that the variation in risk-taking incentives depends on expected relative performance and the strength of the incentives. Overall, this study’s findings suggest that commonly used share-based relative performance plans might not always motivate managers to pursue innovative projects with high idiosyncratic risk when projects with systematic risk are available. |
| Keywords: | idiosyncratic and systematic risk; relative performance evaluation; cash bonuses; payout convexity; executive incentive-compensation |
| JEL: | G30 J33 M12 M41 |
| Date: | 2024–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123696 |