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on Labor Markets - Supply, Demand, and Wages |
| By: | Picchio, Matteo (Marche Polytechnic University); van Ours, Jan C. (Erasmus School of Economics) |
| Abstract: | High temperatures can have a negative effect on workplace safety for a variety of reasons. Discomfort and reduced concentration caused by heat can lead to workers making mistakes and injuring themselves. Discomfort can also be an incentive for workers to report an injury that they would not have reported in the absence of heat. We investigate how temperature affects injuries of professional tennis players in outdoor singles matches. We find that for men injury rates increase with ambient temperatures. For women, there is no effect of high temperatures on injuries. Among male tennis players, there is some heterogeneity in the temperature effects, which seem to be influenced by incentives. Specifically, when a male player is losing at the beginning of a crucial (second) fourth set in (best-of-three) best-of-five matches, the temperature effect is much larger than when he is winning. In best-offive matches, which are more exhausting, this effect is age-dependent and stronger for older players. |
| Keywords: | climate change, temperatures, tennis, injuries, health |
| JEL: | J24 J81 Q51 Q54 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17272 |
| By: | Antoni, Manfred; Gerner, Hans-Dieter; Jäckle, Robert; Schwarz, Stefan |
| Abstract: | Internships are an important and often mandatory part of academic education. They offer valuable insights into the labor market but can also expose students to negative aspects of the working world, such as gender pay disparities. Our paper provides first evidence of a gender pay gap in mandatory internships, with women earning up to 7% less per hour than men. Notably, this gap is not due to women choosing higher-quality internships over higher pay. Further analyses show that the internship pay gap is similar in magnitude to the labor market entry wage gap among graduates. We discuss potential mechanisms by which the internship pay gap may contribute to the graduation wage gap and present empirical evidence to support this. |
| Keywords: | Gender Pay Gap, Internship, Higher Education |
| JEL: | I23 J24 J31 J71 |
| Date: | 2024–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122018 |
| By: | Ghasemi, Parisa (University of Coimbra); Teixeira, Paulino (University of Coimbra); Carreira, Carlos (University of Coimbra) |
| Abstract: | In this study, we investigate the impact of the share of the foreign labor force on the wage of native workers in Portugal between 2010 and 2019 using linked employer-employee data from Quadros de Pessoal. By leveraging job characteristics from the O*NET skill taxonomy, we create more homogeneous skill groups, enabling a precise analysis of immigration's impact on specific skill sets. The empirical analysis, focusing on occupation-experience groups, reveals a positive association between native wages and immigrant shares. In contrast, when groups are based on education-experience, the relationship appears negative. These contradictory findings suggest that the impact of immigration on native wages varies significantly depending on how labor markets are segmented. Furthermore, our analysis demonstrates a positive and statistically significant effect on native wages in high-skilled occupations, while native wages in low-skilled occupations are negatively affected due to increased competition. Our findings highlight the importance of considering occupation classification over simple education levels and suggest that diverse results in existing literature may be due to sample averaging. |
| Keywords: | immigration, native wages, native-immigrants' complementarities |
| JEL: | J24 J31 J61 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17266 |
| By: | Maida, Agata (Università degli Studi di Milano); Pezone, Vincenzo (Tilburg University) |
| Abstract: | We analyze the effect of CEO pay disclosure on wage distribution by exploiting a 1998 reform requiring Italian publicly listed companies to disclose top executives' compensation. In firms where CEOs disclose high total compensation, the top 5 percent and 1 percent of the within-firm wage distribution rise substantially. Instead, the effect on average wages is small and only marginally significant. As a result, wage inequality increases. These effects are stronger for workers with low experience or located in the main region of the firm's operations. Moreover, they are driven by changes in workers' bargaining power, rather than by sorting. |
| Keywords: | CEO compensation, wage disclosure, income inequality, wage bargaining |
| JEL: | J31 D63 D9 M12 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17243 |
| By: | Carter, Charles (University of Bath); Delaney, Judith M. (University of Bath); Papps, Kerry L. (University of Bradford) |
| Abstract: | We exploit a spatial discontinuity in the wages paid by the United Kingdom's National Health Service to examine how wages affect the duration of time a vacancy is advertised. NHS workers in inner London are mandated by law to be paid an extra 4.3% more than those who work in outer London. We use a regression discontinuity design and estimate an elasticity of duration with respect to wages of -6.3. This number is larger than reported by previous studies and suggests that firms can fill worker shortages faster by raising wages. This also highlights the importance this margin of worker recruitment when analysing firm search and job match. Our results are robust to various checks including a placebo test using fictitious borders and are robust to changes in the bandwidth and the duration measure. The estimates are similar across all occupational groups in the NHS and are not limited to jobs that require specific skills such as nurses and therapists. Our results provide evidence for policy makers which suggests that increasing the wages paid to NHS workers may lead to increased cost savings by reducing the need to hire expensive agency staff and may also lead to better health outcomes of the population through reduced staff shortages. |
| Keywords: | vacancy duration, wages, employer search |
| JEL: | J22 J23 J31 J38 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17273 |
| By: | Francesco D'Alessandro (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy); Enrico Santarelli (, Department of Economics, University of Bologna, Italy - Global Labor Organization (GLO), Essen, Germany); Marco Vivarelli (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy – UNU-MERIT, Maastricht, The Netherlands – IZA, Bonn, Germany) |
| 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: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0039 |
| By: | Arindrajit Dube; Attila S. Lindner |
| Abstract: | This chapter surveys the literature on the impact of minimum wages on low-wage labor markets. We describe and critically review the empirical methods in the new minimum wage literature, particularly those leveraging quasi-experimental variation. We provide a quantitative overview of the most recent evidence on the employment and wage effects of the policy, while also exploring emerging research on its impact on other margins, including amenities, other inputs (such as capital and high-skilled workers), firm entry and exit, output prices and demand, profits, and productivity. This approach allows us to present a comprehensive picture of how minimum wage policies affect firms, workers, and labor markets. We also review the evidence on the policy’s impact on wage inequality and income distribution. Finally, we discuss how these effects can vary depending on the economic context and the level of a country’s development. |
| JEL: | J20 J30 J8 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32878 |
| By: | David J. Deming; Mikko I. Silliman |
| Abstract: | This paper synthesizes the economics literature on skills and human capital, with a particular focus on higher-order capacities like social and decision-making skills. We review the empirical evidence on returns to human capital from both a micro and macro perspective, as well as the evidence on returns to human capital investment over the life-cycle. We highlight two key limitations of human capital theory as currently implemented. First, prior work mostly assumes that human capital is one-dimensional and can be measured by education or test scores alone. Second, human capital is typically modeled as augmenting the marginal product of labor with workers being treated as factors of production, just like physical capital. We argue for a new approach that treats workers as agents who decide how to allocate their labor over job tasks. Traditional cognitive skills make workers more productive in any task, while higher-order skills govern workers’ choices of which tasks to perform and whether to work alone or in a team. We illustrate the value of this approach with stylized models that incorporate teamwork and decision-making skills and generate predictions about how returns to skills vary across contexts. |
| JEL: | J24 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32908 |
| By: | Becker, Sebastian (Federal Ministry of Labor and Social Affairs (BMAS), Germany); Gehlen, Annica (DIW Berlin); Geyer, Johannes (DIW Berlin); Haan, Peter (DIW Berlin) |
| Abstract: | We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy variation using an RD design to estimate the effect of increasing disability benefits on employment, earnings, labor market transitions, and mortality outcomes using administrative data on the universe of new disability benefit recipients. Contrary to previous literature, our analysis reveals no significant impact on the employment and earnings of DI recipients due to the increased benefits. However, we find a sizable effect of the probability of returning to the labor market. We find no effects on recipient mortality six years after benefit award, but estimates imply a notable reduction in poverty risk, highlighting meaningful welfare implications of increased generosity. |
| Keywords: | disability insurance, pension reform, wealth effect, labor supply, mortality, RDD |
| JEL: | H55 I12 J22 J26 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17298 |
| By: | Campos, Nicolás (Inter-American Development Bank); Chalup, Miguel (Arizona State University); Mitnik, Oscar A. (Inter-American Development Bank); Urquidi, Manuel (Inter-American Development Bank) |
| Abstract: | We provide quasi-experimental estimates of the impact of reforming public training programs offered in Paraguay on formal employment. The Programa de Apoyo a la Inserción Laboral (PAIL) revamped training program design in the country by offering courses aligned with the needs of the private sector, enhancing non-cognitive skills, and combining practical work within companies with classroom training. We combine administrative records—which contain detailed information on the employment history and characteristics of all formal workers in Paraguay—with an empirical strategy based on extensions of difference-in-differences models and synthetic difference-in-differences. We find that the probability of obtaining formal employment for women and men increases by 11 percentage points. Even two years after participating, the program has a lasting impact on women, an aspect not observed for men. Additionally, the program's impact is positive only in the metropolitan area of Asunción; the program is less effective in areas far from the urban center, especially for men. The observed results suggest that supply-side interventions are ineffective if no formal jobs are available for the beneficiaries. |
| Keywords: | public training programs, active labor market policies, formal employment |
| JEL: | J24 J38 J68 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17254 |
| By: | Antinyan, Armenak (Thames Water); Burn, Ian (University of Liverpool); Jones, Melanie K. (Cardiff University) |
| Abstract: | While hiring discrimination against disabled candidates is widely documented, the reasons for such discrimination and the mechanisms designed to reduce it are not well understood. This study aims to tackle these questions through a large-scale correspondence study. Fictitious job applications were sent to about 4, 000 job vacancies for accountants and financial accounts assistants in the UK. Consistent with discrimination, we find a 5.6 percentage point (15%) gap in the employer callback rate associated with mobility impairment indicated by the use of a wheelchair, but substantial occupational heterogeneity. Productivity signals designed to reduce statistical discrimination, including the offer of a positive reference from a previous employer and, enhanced education and technical skills, do not reduce, and actually widen, the disability gap in callbacks. Our findings are suggestive of taste-based discrimination being a significant barrier to employment for disabled people that requires policy attention. |
| Keywords: | disability, discrimination, correspondence studies, productivity signals |
| JEL: | J14 J71 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17290 |
| By: | David Neumark; Emma Wohl |
| Abstract: | One of the arguments increasingly made to support large minimum wage increases is that they decrease wage or earnings gaps for minorities or women (e.g., Derenoncourt and Montialoux, 2021). The argument is often made with particular reference to higher tipped minimum wages for restaurant workers, because of discrimination in tipping that is immune to equal pay policy requirements. Of course, even if higher tipped minimum wages reduce hourly pay differences between groups, increases in tipped minimum wages can reduce employment or hours among restaurant workers (Neumark and Yen, 2023), and these effects could differ by race and gender, so implications for hourly earnings do not necessarily extend to overall earnings. We estimate the impact of variation in tipped minimum wages – or, equivalently, tip credits – on earnings of restaurant workers (which ignores employment variation but incorporates hours variation). We find that tipped minimum wages raise hourly earnings of women, but not of Blacks or Hispanics. But tipped minimum wages generally do not raise weekly earnings for these groups (because of hours declines for women). In contrast, regular minimum wages boost hourly and weekly earnings of all three groups of restaurant workers, with the effects arising from non-tipped workers. |
| JEL: | J23 J38 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32964 |
| By: | Bašić, Zvonimir (University of Glasgow); Bortolotti, Stefania (University of Bologna); Salicath, Daniel (NAV Norwegian Labour and Welfare Administration); Schmidt, Stefan (Max Planck Institute for Research on Collective Goods); Schneider, Sebastian O. (Max Planck Institute for Research on Collective Goods); Sutter, Matthias (Max Planck Institute for Research on Collective Goods) |
| Abstract: | Incentives are supposed to increase effort, yet individuals react differently to incentives. We examine this heterogeneity by investigating how personal characteristics, preferences, and socio-economic background relate to incentives and performance in a real effort task. We analyze the performance of 1, 933 high-school students under a Fixed, Variable, or Tournament payment. Productivity and beliefs about relative performance, but hardly any personal characteristics, play a decisive role for performance when payment schemes are exogenously imposed. Only when given the choice to select the payment scheme, personality traits, economic preferences and socioeconomic background matter. Algorithmic assignment of payment schemes could improve performance, earnings, and utility, as we show. |
| Keywords: | effort, productivity, incentives, personality traits, preferences, socio-economic background, ability, heterogeneity, sorting, algorithm, lab-in-the-field experiment |
| JEL: | C93 D91 J24 J41 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17287 |
| By: | Buchheim, Lukas (TU Dortmund); Link, Sebastian (Ifo Institute for Economic Research); Möhrle, Sascha (Ifo Institute for Economic Research) |
| Abstract: | We study the link between expected inflation and wages using novel panel data from German firms and employees. We find that pass-through—the percentage point change in wage growth given a one percentage point change in expected inflation—is small: 0.11–0.17 for firms and 0.03–0.07 for employees. Utilizing variation in the coverage length of collective agreements, we estimate that passthrough at the intensive margin is 1.4-2 times larger than average pass-through, highlighting the importance of wage rigidities for pass-through. Pass-through also rises with the bargaining power of employees. At the extensive margin, expected inflation has little effect on additional wage negotiations. |
| Keywords: | wage expectations, inflation, pass-through, wage-price spirals, bargaining, firms, employees, survey data |
| JEL: | E24 E31 D84 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17269 |
| By: | Anisha Sharma; Manisha Shah; Beata Łuczywek |
| Abstract: | Approximately 27.5 million individuals fell victim to forced labor in 2021. The Indian construction industry is particularly vulnerable to forced labor as workers experience excessive work hours, required work on rest days, and unpaid wages. Micro-contractors (MCs), who oversee worker environments, frequently struggle with their own financial constraints due to limited access to working capital. This study investigates whether alleviating MC liquidity constraints improves labor conditions for their workers in Bengaluru and Delhi by offering randomly selected MCs access to low-cost loans. Our findings reveal this intervention does not improve working conditions overall; in fact, some outcomes slightly worsen. However, workers employed by more educated and non-migrant treatment MCs experience significantly better labor conditions, underscoring important heterogeneity among MCs. This research offers new causal insights into efforts to combat forced labor. |
| JEL: | J21 J28 J81 O12 O15 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32912 |
| By: | Javier Espinosa; William N. Evans; David C. Phillips; Tim Spilde |
| Abstract: | A new wave of social service programs aims to build a pathway out of poverty by helping clients define their own goals and then supporting them flexibly and intensively over multiple years to meet those goals. We conduct a randomized controlled trial of one such program. Participants randomly assigned to intensive, holistic, wrap-around services have 10 percentage points higher employment rates after one year compared with a control group offered only help with an immediate need. Most of this effect appears to persist after programming ends. However, we find limited evidence that intensive, holistic services affect areas beyond employment, even when other areas of life are participants’ primary goals. We find some evidence that the program works by increasing hopefulness and agency among participants, which may be more useful in supporting labor force participation than in meeting other goals. |
| JEL: | D91 I38 J22 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32911 |
| By: | Alexander Bick; Adam Blandin; David Deming |
| Abstract: | Generative Artificial Intelligence (AI) is a potentially important new technology, but its impact on the economy depends on the speed and intensity of adoption. This paper reports results from the first nationally representative U.S. survey of generative AI adoption at work and at home. In August 2024, 39 percent of the U.S. population age 18-64 used generative AI. More than 24 percent of workers used it at least once in the week prior to being surveyed, and nearly one in nine used it every workday. Historical data on usage and mass-market product launches suggest that U.S. adoption of generative AI has been faster than adoption of the personal computer and the internet. Generative AI is a general purpose technology, in the sense that it is used in a wide range of occupations and job tasks at work and at home. |
| Keywords: | generative artificial intelligence (AI); technology adoption; employment |
| JEL: | J24 O33 |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:98805 |
| By: | Piotr Lewandowski; Wojciech Szymczak |
| Abstract: | We study the effect of the adoption of automation technologies – industrial robots and software and databases – on the incidence of atypical employment in 13 E.U. countries between 2006 and 2018. We combine survey microdata with sectoral information on technology use and exploit the variation at the demographic group level. Using instrumental variables estimation, we find that industrial robots significantly increase atypical employment share, mostly through involuntary part-time and involuntary fixed-term work. We find no robust effect of software and databases. We also show that the higher trade union coverage mitigates the robots’ impact on atypical employment, while employment protection legislation appears to play no role. Using historical decompositions, we attribute about 1-2 percentage points of atypical employment shares to rising robot exposure, especially in Central and Eastern European countries with low unionisation. |
| Keywords: | robots, automation, atypical employment, trade unions |
| JEL: | J23 J51 O33 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ibt:wpaper:wp022024 |
| By: | Görlitz, Katja (Hochschule der Bundesagentur für Arbeit (HdBA)); Heß, Pascal (Institute for Employment Research (IAB), Nuremberg); Tamm, Marcus (Hochschule der Bundesagentur für Arbeit (HdBA)) |
| Abstract: | This study provides a policy evaluation of laws allowing early school enrollment of children, i.e., enrollment before the official school starting age. It investigates the effects of early enrollment on educational attainment, wages and employment. While the school starting age is usually determined by children's date of birth and legal cutoffs, some German states allowed early enrollment in some years. Exploiting state and cohort variation, the results show that male early enrollees attain fewer years of schooling, enter the labor market earlier and have a larger labor market attachment at around age 16. Positive wage effects persist until approximately age 35. Results for women roughly resemble those for men but they are less convincingly estimated. |
| Keywords: | early enrollment policy, early school entry, wages, employment, school starting age |
| JEL: | I28 J21 J24 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17303 |
| By: | Joel Bowman (NSW Treasury); Jonathan Hambur (Reserve Bank of Australia); Nathan Markovski (NSW Treasury) |
| Abstract: | Occupational entry regulations (OER) are legal requirements that people need to meet to enter certain professions. They are intended to protect consumers by ensuring providers are of sufficient quality – but they can also create costs by making it harder for new workers to enter a profession or for new firms to open and grow. In this paper we construct a database of OER stringency across three states and a number of occupations to better understand these potential costs. We find that for services provided to consumers (businesses), OER tend to be more (less) stringent in Australia compared with the average OECD country. In most occupations OER are more stringent in Australia compared to the least stringent OECD country. We find that more stringent OER are associated with lower business entry and exit rates, and a slower flow of workers from less to more productive firms, both of which may have negative implications for productivity. We also find some tentative evidence that OER tend to be associated with skill shortages. These results do not necessarily suggest that OER should be less stringent. But they fill a gap in our understanding of the effects of OER, which can help policymakers going forward. |
| Keywords: | productivity; dynamism; occupational regulations |
| JEL: | E24 J24 K23 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:rba:rbardp:rdp2024-06 |
| By: | Forth, John (City University London); Bryson, Alex (University College London); Phan, Van (University of the West of England, Bristol); Ritchie, Felix (University of the West of England, Bristol); Singleton, Carl (University of Stirling); Stokes, Lucy (Competition and Markets Authority); Whittard, Damian (University of the West of England, Bristol) |
| Abstract: | We gratefully acknowledge funding from ADR UK (Administrative Data Research UK) and the Economic and Social Research Council (Grant No. ES/T013877/1). The work is based on analysis of the research-ready datasets from the Annual Survey of Hours and Earnings (ASHE) (ONS, 2024a), Business Structure Database (ONS, 2024b) and Annual Population Survey (ONS, 2023a), accessed through the ONS Secure Research Service. The use of the ONS data in this work does not imply the endorsement of the ONS or data owners in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. National Statistics follow consistent statistical conventions over time and cannot be compared to these findings. We thank Susan Purdon, Eduin Latimer, and participants at the 2023 Work and Pensions Economics Group Conference, 2023 Low Pay Commission Research Symposium, and 2024 Annual Conference of the Economic Statistics Centre of Excellence (ESCoE) for valuable comments. |
| Keywords: | low pay, survey weighting, attrition, non-response bias, earnings, national living wage |
| JEL: | C81 C83 J31 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17291 |
| By: | Cesar Barreto; Jonas Fluchtmann; Alexander Hijzen; Stefano Lombardi; Patrick Bennett; Antoine Bertheau; Winnie Chan; Andrei Gorshkov; Jonathan Hambur; Nick Johnstone; Benjamin Lochner; Jordy Meekes; Tahsin Mehdi; Balázs Muraközy; Gulnara Nolan; Kjell Salvanes; Oskar Nordström Skans; Rune Vejlin |
| Abstract: | This paper provides a comprehensive analysis of the costs of job displacement in energy-intensive industries in selected OECD countries. Based on harmonised linked employer-employee data from 14 OECD countries, we estimate the effect of job displacement in three energy-intensive industries, namely energy supply, heavy manufacturing and transport, compared to other industries. We find that workers displaced from the energy supply and heavy manufacturing, experience larger earnings losses compared with workers in non-energy-intensive and transport sectors. Larger earnings losses mainly result from weaker re-employment outcomes in terms of wages and job instability but also challenges with finding another job. They reflect significant differences in the composition of workers and firms in energy supply and heavy manufacturing and the rest of the economy. Displaced workers in these sectors tend to be older, are less skilled and more likely to be previously employed in high-wage firms. |
| Keywords: | dismissal, just transition, linked employer-employee data |
| JEL: | J31 J63 Q43 |
| Date: | 2024–09–27 |
| URL: | https://d.repec.org/n?u=RePEc:oec:elsaab:310-en |
| By: | Claude DIEBOLT; Magali Jaoul-Grammare |
| Abstract: | School choice factors play a different role according to gender. According to the literature, women have “adaptative exceptations” whereas men have so called “static exceptations”. Men and women adopt also different attitudes to expected payoffs, to risk or towards their level of aspiration. Finally, women generally associate their career plans with their life plans, which influences their choice of studies. But, what about social prestige, i.e. does the prestige of profession play an identical role in the demand for education among men and women? More specifically and over the long term, is the phenomenon of substitutability between prestigious career paths equally true for men and women? Finally, does the medical sphere regulate the male and female education systems equally? The ambition of this contribution is to contribute to the discussion using an unpublished historical dataset for France in the long 20th century. |
| Keywords: | Study choice, Gender, Prestige of professions, France. |
| JEL: | I21 J24 N34 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-37 |
| By: | Engel, Julia F.; Nüß, Patrick; Rudolph, Meike; Schwarz, Julia |
| Abstract: | We conduct a computational replication of Atanasov et al. (2023). In total, our analysis covers three variations: we use the cleaned dataset provided in the replication package, we clean the original data ourselves, and finally we extend the dataset to encompass an additional three years of data using the webscraper provided by the authors. The additional data boosts the final observation count by approximately one-quarter. We find that the results are robust; the data in the replication package results in nearly the same estimates and an extension of the data and specifications reduces the effect size and statistical significance, but does not change the conclusions. We further conduct a wide range of robustness checks. While some estimates have smaller effect sizes and lower statistical significance, all results support the original findings. |
| Keywords: | Replication, Analysis of Collective Decision-Making, Wages, Compensation, and Labor Costs, Gender Discrimination |
| JEL: | D7 J3 J7 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:151 |
| By: | Manuel Arellano; Orazio Attanasio; Samuel Crossman; Víctor Sancibrián |
| Abstract: | We develop a methodology for modeling household income processes when subjective probabilistic assessments of future income are available. This allows us to flexibly estimate conditional cdfs directly using elicited individual subjective probabilities, and to obtain empirical measurements of subjective risk and persistence. We then use two longitudinal surveys collected in rural India and rural Colombia to explore the nature of income dynamics in those contexts. Our results suggest linear income processes are rejected in favor of more flexible versions in both cases; subjective income distributions feature heteroskedasticity, conditional skewness and nonlinear persistence. |
| JEL: | C1 C42 J3 O12 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32922 |
| By: | Ronak Jain |
| Abstract: | Street vending is an important source of self-employment for the urban poor. I combine observational, survey, and experimental data from Delhi to study this market. Partnering with vendors to randomize prices and passersby they solicit, I find that even with identical goods, child vendors are 97% more likely to make a sale and earn 2x more than adult vendors. Despite no differences in valuations, couples and women are 90% and 28% more likely to buy than men and they are targeted more often and quoted higher prices. I show that sellers strategically leverage insights about social preferences to influence buyer decision-making. |
| Keywords: | Social preferences, child labor, price discrimination, consumer behavior |
| JEL: | C93 D91 J46 L10 O17 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:zur:econwp:451 |
| By: | Busso, Matias (Inter-American Development Bank); Montaño, Sebastián (University of Maryland); Muñoz-Morales, Juan S. (IÉSEG School of Management); Pope, Nolan G. (University of Maryland) |
| Abstract: | Teacher quality is a key factor in improving student academic achievement. As such, educational policymakers strive to design systems to hire the most effective teachers. This paper examines the effects of a national policy reform in Colombia that established a merit-based teacher-hiring system intended to enhance teacher quality and improve student learning. Implemented in 2005 for all public schools, the policy ties teacher-hiring decisions to candidates' performance on an exam evaluating subject-specific knowledge and teaching aptitude. The implementation of the policy led to many experienced contract teachers being replaced by high exam-performing novice teachers. We find that though the policy sharply increased pre-college test scores of teachers, it also decreased the overall stock of teacher experience and led to sharp decreases in students' exam performance and educational attainment. Using a difference-in-differences strategy to compare the outcomes of students from public and private schools over two decades, we show that the hiring reform decreased students' performance on high school exit exams by 8 percent of a standard deviation, and reduced the likelihood that students enroll in and graduate from college by more than 10 percent. The results underscore that relying exclusively on specific ex ante measures of teacher quality to screen candidates, particularly at the expense of teacher experience, may unintentionally reduce students' learning gains. |
| Keywords: | teachers, teaching experience, teacher screening, Colombia, test scores, college enrollment |
| JEL: | I25 I28 J24 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17294 |
| By: | Paliński, Michał (University of Warsaw); Aşık, Gunes A. (TOBB University of Economy and Technology); Gajderowicz, Tomasz (University of Warsaw); Jakubowski, Maciej (University of Warsaw); Nas Özen, Efşan (World Bank); Raju, Dhushyanth (World Bank) |
| Abstract: | This study expands the inventory of green job titles by incorporating a global perspective and using contemporary sources. It leverages natural language processing, specifically a retrieval-augmented generation model, to identify green job titles. The process began with a search of academic literature published after 2008 using the official APIs of Scopus and Web of Science. The search yielded 1, 067 articles, from which 695 unique potential green job titles were identified. The retrieval-augmented generation model used the advanced text analysis capabilities of Generative Pre-trained Transformer 4, providing a reproducible method to categorize jobs within various green economy sectors. The research clustered these job titles into 25 distinct sectors. This categorization aligns closely with established frameworks, such as the U.S. Department of Labor's Occupational Information Network, and suggests potential new categories like green human resources. The findings demonstrate the efficacy of advanced natural language processing models in identifying emerging green job roles, contributing significantly to the ongoing discourse on the green economy transition. |
| Keywords: | AI, text mining, occupational classification, green jobs, green economy |
| JEL: | J23 Q52 O14 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17286 |
| By: | Bohren, Noah (University of Lausanne); Hakimov, Rustamdjan (University of Lausanne); Lalive, Rafael (University of Lausanne) |
| Abstract: | Generative artificial intelligence (AI) has made substantial progress, but some capabilities of AI are not well understood. This study compares the ability of AI to a representative population of US adults in creative and strategic tasks. The creative ideas produced by AI chatbots are rated more creative than those created by humans. Moreover, ChatGPT is substantially more creative than humans, while Bard lags behind. Augmenting humans with AI improves human creativity, albeit not as much as ideas created by ChatGPT alone. Competition from AI does not significantly reduce the creativity of men, but it decreases the creativity of women. Humans who rate the text cannot discriminate well between ideas created by AI or other humans but assign lower scores to the responses they believe to be AI-generated. As for strategic capabilities, while ChatGPT shows a clear ability to adjust its moves in a strategic game to the play of the opponent, humans are, on average, more successful in this adaptation. |
| Keywords: | artificial intelligence, ChatGPT, Bard, creativity, experiment |
| JEL: | I24 J24 D91 C90 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17302 |