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on Labor Markets - Supply, Demand, and Wages |
| By: | Gholami, Mahdi; Muehlemann, Samuel |
| JEL: | I26 J23 J24 J31 M51 M53 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302349 |
| By: | Guo, Yuchen Mo; Falck, Oliver; Langer, Christina; Lindlacher, Valentin; Wiederhold, Simon |
| JEL: | J24 J31 J61 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302366 |
| By: | Bachmann, Ronald (RWI, Heinrich-Heine-Universität Düsseldorf, IZA); Janser, Markus (Institute for Employment Research (IAB), Nuremberg, Germany); Lehmer, Florian (Institute for Employment Research (IAB), Nuremberg, Germany); Vonnahme, Christina (RWI) |
| Abstract: | "Using a text-mining approach applied to task descriptions of occupations together with worker-level administrative data, we explore the growth in the greenness of employment in Germany between 2012 and 2022. We first demonstrate that the greening of the labour market occurs both through an increase of green tasks and a decrease of brown tasks. Furthermore, the greening of occupations over time (“within-effect”) is at least as important for the overall greening of employment as shifting occupational employment shares (“between-effect”). Second, we show which occupations and which task types (brown or green) contribute most to the within-effect, and which worker flows are mainly responsible for the between-effect. Third, we investigate individual-level consequences of the greening of employment. We find that the employment prospects of foreign and of low-skilled workers are most at risk from the green transition, which may therefore increase existing labour-market inequalities." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Beschäftigtenhistorik |
| JEL: | J23 J24 O33 Q55 R23 |
| Date: | 2024–09–17 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabdpa:202412 |
| By: | Schilter, Claudio (University of Bern); Lüthi, Samuel (Swiss Co-ordination Center for Research in Education); Wolter, Stefan C. (University of Bern) |
| Abstract: | We merge experimental data on competitiveness of a large sample of students with their complete educational history for up to ten years after the initial assessment. Exploiting quasi-random class assignments, we find that having competitive peers as classmates makes students choose and secure positions in higher-paying occupations. These occupations are also more challenging and more popular. On the cost side, competitive peers do not lead to a lower probability of graduating from the subsequent job-specific education, but they significantly increase the probability of requiring extra time to do so. |
| Keywords: | peer effects, competitiveness, occupational choice |
| JEL: | C93 D91 J24 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17289 |
| By: | Pham, Tho (University of York); Schaefer, Daniel (Johannes Kepler University Linz); Singleton, Carl (University of Stirling) |
| Abstract: | National payroll earnings data reveal that men are generally paid more than women when they enter firms. Although this hiring wage gap has narrowed over the past two decades, it still accounts for over half of the overall gender pay gap in Great Britain. Even when firms hire men and women into the same specific occupation at roughly the same time, and accounting for previous work experience, there remains an unexplained hiring wage gap within jobs that favours men by 2.6%. These findings suggest that gender pay gap reporting laws that focus exclusively on the overall gaps within employers miss an important margin. Mandating employers to additionally disclose their wage gaps among newly hired workers could be highly informative. |
| Keywords: | gender segregation, occupation-specific wages, employer-employee data |
| JEL: | J16 J31 J70 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17285 |
| By: | Sebastian Becker; Annica Gehlen; Johannes Geyer; Peter Haan |
| 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: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:bdp:dpaper:0050 |
| By: | McNamara, Cici (Georgia Institute of Technology); Pineda-Torres, Mayra (Georgia Institute of Technology) |
| Abstract: | We quantify the impact of federal subsidies for graduate medical education on primary care physician (PCP) supply by examining the impact of Section 5503 of the Affordable Care Act, which increased the number of residents that teaching hospitals in rural and high-need areas could receive subsidies for training. Instrumenting for selection into the program using its eligibility and allocation criteria, we find that the provision increased both the recruitment of residents into primary care and time spent at teaching hospitals in high-need areas, resulting in an increase in PCP supply in treated counties of 5.2 percent. |
| Keywords: | Medicare, Affordable Care Act, primary care |
| JEL: | I18 I28 J24 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17263 |
| By: | Lutz Hendricks; Tatyana Koreshkova; Oksana Leukhina |
| Abstract: | This paper studies how college admissions preferences for low income students affect intergenerational earnings mobility. We develop a quantitative model of college choice with quality differentiated colleges. We find that admissions preferences substantially increase low income enrollment in top quality colleges and intergenerational earnings mobility. The associated losses of aggregate earnings are very small. |
| Keywords: | college quality; human capital; intergenerational mobility; income-based admissions |
| JEL: | J24 J31 I23 I26 |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:98881 |
| By: | Mario Lackner; Hendrik Sonnabend |
| Abstract: | This paper examines the impairing effect of heat stress on cognitive abilities in a high-stakes setting. Building on rich play-by-play data from the National Football League (NFL) linked to variations in game-time temperature, we find that players are about 25% more likely to be sanctioned for infractions associated with mental errors in games with temperatures above 85°F (29.4°C) compared to games with lower temperatures. Furthermore, we identify situations with (i) little room to adapt to heat stress and (ii) high work intensities, as well as the players’ physical constitution as channels that can explain the heat-induced decline in mental performance. |
| Keywords: | heat stress, mental performance, football |
| JEL: | Q51 J24 J81 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:jku:econwp:2024-11 |
| By: | Forsberg, Erika (IFAU - Institute for Evaluation of Labour Market and Education Policy); Khan, Akib (Department of Economics at Uppsala University); Rosenqvist, Olof (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | Family background shapes individual outcomes throughout life. While the existing literature documents how the importance of family background, typically measured by the degree of sibling correlation in socioeconomic outcomes, varies across countries, less is known about heterogeneities across social groups within a country. Using Swedish register data, we compare sibling correlations in skills, schooling, and earnings across fine-grained groups defined byparental socioeconomic status (SES). We find that sibling correlations generally decline in parental SES. This pattern holds for skills, schooling, and earnings, and is robust to alternative definitions of parental SES. These results align with theories suggesting that parental investments reinforce disparities, although other mechanisms such as complementarities between parental investments and child ability could also be at play. While the exact mechanisms behind the observed socioeconomic gradient in sibling similarity are hard to identify, the results suggest that life is more formed by individual endowments and considerations for children from high SES backgrounds as compared to their low SES counterparts. |
| Keywords: | sibling correlations; education; earnings; skills; parental socioeconomic status |
| JEL: | I24 J24 J62 |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2024_014 |
| By: | Anastasiia Pustovalova; Priit Vahter |
| Abstract: | This paper explores the complementarity of automation with social and problem-solving skills, focusing on the wage effects. The results based on detailed firm- and individual-level data from Estonia show that in manufacturing firms which recently adopted automation tools, there is additional wage premium for employees’ social skills. This effect is even more pronounced for the low-skilled workers, emphasizing both the importance of soft skills on low-wage jobs and how innovation at firms can have significant positive effects on some sub-groups of the low-skilled. The role of skills is different depending on how persistent the automation investments are at the firm. First-time automating firms start valuing the social skills first, while persistently automating firms reward the problem-solving skills instead. |
| Keywords: | automation, technological change, social skills, problem-solving skills, wage differentials |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:mtk:febawb:146 |
| By: | Damelang, Andreas (FAU); Rückel, Ann-Katrin (FAU); Stops, Michael (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "This study presents patterns of gender stereotyping in job ads in the German labor market and examines its association with the unequal distribution of men and women across occupations. Using a large dataset of job ads from the "BA-Jobbörse", one of the largest online job portals in Germany, we apply a machine learning algorithm to identify the explicitly verbalized job descriptions. We then use a dictionary of agentic (male-associated) and communal (female-associated) signal words to measure gender stereotyping in the job descriptions. We collect information for 710 different occupations. Our first result shows that more jobs are female-stereotyped than male-stereotyped. We then take the example of two occupational groups that reveal clear differences in tasks contents and are highly relevant regarding important megatrends like digitalization and the demographic change: On the one hand, Science, Technology, Engineering, and Mathematics (STEM) and, on the other hand, Health and Social Services occupations. Additionally, we investigate the hierarchical aspect of occupational gender segregation. We distinguish jobs according to their required skill level and whether or not they are supervisory and leadership positions. In contrast to our first result, we find within STEM occupations as well as in supervisory and leadership positions that the majority of jobs is male-stereotyped. Our findings indicate a positive association between gender stereotyping and occupational gender segregation, suggesting that gender stereotyping in job ads might contribute to the underrepresentation of women in certain occupations and occupational positions." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| JEL: | J71 |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabdpa:202413 |
| By: | OECD |
| Abstract: | The global productivity slowdown, characterised by a widespread deceleration in aggregate productivity growth rates, is a prevailing concern for policy makers and academics. In this context, this report summarises evidence on productivity growth and business dynamics, highlighting long-term trends and their drivers, as well as insights specific to the COVID-19 period, with relevant implications for future productivity and innovation. It underscores the role of productivity for employment and wages, and discusses challenges related to the digitalisation of the economy and the green transition. Additionally, it considers how the resurgence of industrial policies necessitates additional analysis to measure and coordinate government action. |
| Keywords: | Artificial intelligence, Business dynamism, COVID-19, Diffusion, Employment, Industrial policy, Innovation, Labour share, Productivity, Technological change |
| JEL: | J30 L10 O25 O30 O33 L52 |
| Date: | 2024–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaaa:2024/7-en |
| By: | Lisa Barrow; Bea Rivera; Diane Whitmore Schanzenbach |
| Abstract: | Understanding the evolving interactions between employment, social benefits, and families' well-being is key to designing better policies to both protect families and foster economic growth. Employment both overall and among those living in low-income families has been on a downward trajectory across the last three decades. One notable exception is that low-income women with children were increasingly likely to work between 1992 and 1999 in the aftermath of large changes to social safety net programs to provide more incentives and rewards for work. Since then, low-income women with children have been more likely to be employed than childless women. Over time, payments from social benefits programs have made up a larger share of income among low-income families with children and relatively higher earnings. Among low-income families without children, social benefits have not changed much over time. |
| Keywords: | employment; labor supply; low-income workers; social benefits; maternal employment; Earned Income Tax Credit |
| JEL: | H31 J2 I38 |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedcwq:98950 |
| By: | Naomi-Rose Alexander; Mauro Cazzaniga; Ms. Stefania Fabrizio; Ms. Florence Jaumotte; Longji Li; Dr. Jorge Mondragon; Sahar Priano; Ms. Marina Mendes Tavares |
| Abstract: | The transition to a sustainable and green economy requires workers to move out of carbon-intensive jobs and workers to move into green jobs. The pace and effectiveness of the transition hinge not only on climate policies but also on the skills and adaptability of workers. Evidence suggests that economies with a robust supply of STEM-educated workers and a more equal treatment of women are better placed to transition faster and at a lower cost to a green economy, even after controlling for other country characteristics, because these economies generate more green innovation and face lower bottlenecks in expanding the green workforce. Altogether, climate policies, particularly energy taxes, in these economies are associated with emission reductions that are 2 to 4 percentage points larger than in economies with a less inclusive and educated workforce. While green jobs have been growing worldwide, men currently hold close to two-thirds of these positions and women only one-third. Green jobs are associated with a 7 percent premium for men and an even higher premium of 12 percent for women, suggesting that men’s and women’s labor supply may not meet demand. These findings highlight the critical need for educational and labor policies that promote skill enhancement and gender inclusivity, to ensure a sufficient supply of workers for the green economy and that all workers can benefit from the green transition. Finally, AI could be beneficial for workers in green jobs. |
| Keywords: | Labor Market Transition; Climate Change; Employment; Gender Equality; gender green employment gap decomposition; employment share; green wage premium; worker occupation; women employment; green jobs workers' characteristic; Gender inequality; Women; Labor markets; Global |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfsdn:2024/003 |
| By: | Elton Beqiraj; Stefano Di Bucchianico; Mario Di Serio; Michele Raitano |
| Abstract: | This study examines the impact of monetary policy on wage inequality in Italy from 1999m1 to 2018m12, using a newly assembled dataset based on high-frequency administrative data on private-sector employees from the Italian Social Security Institute (INPS). By applying the Smooth Local Projection (SLP) method, we derive the impulse responses to exogenous monetary policy shocks of average wages and of the Gini index of wage inequality and other indicators of the wage distribution. Our findings show that expansionary monetary policy significantly reduces wage inequality while stimulating economic activity. Furthermore, distinguishing workers’ subgroups according to sector of activity, occupation and firm’s size, we find that expansionary monetary policy decreases wage inequality both 'between' and 'within' subgroups |
| Keywords: | Monetary policy shocks, Wage inequality, Italian data, Earnings heterogeneity, Labour market |
| JEL: | D63 E50 E52 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:912 |
| By: | Timothy DeStefano; Nick Johnstone; Richard Kneller; Jonathan Timmis |
| Abstract: | The arrival of cloud computing provides firms a new way to access digital technologies as digital services. Yet, capital incentive policies present in every OECD country are still targeted towards investments in information technology (IT) capital. If cloud services are partial substitutes for IT investments, the presence of capital incentive policies may unintentionally discourage the adoption of cloud and technologies that rely on the cloud, such as artificial intelligence (AI) and big data analytics. This paper exploits a tax incentive in the UK for capital investment as a quasi-natural experiment to examine the impact on firm adoption of cloud computing, big data analytics and AI. The empirical results find that the policy increased investment in IT capital as would be expected; but it slowed firm adoption of cloud, big data and AI. Matched employer-employee data shows that the policy also led firms to reduce their demand for workers that perform data analytics, but not other types of workers. |
| Keywords: | Capital incentives, Firms, Cloud computing, Artificial Intelligence |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:not:notgep:2024-04 |
| By: | Maria Aristizabal-Ramirez; Cezar Santos; Alejandra Torres |
| Abstract: | This paper examines labor markets across Latin American countries, revealing substantial differences in unemployment, informality, and worker transitions. Using surveys from eight countries, we construct comparable statistics on employment stocks and mobility patterns. Notable cross-country differences emerge, with economies mostly clustered into high unemployment-low informality or low unemployment-high informality groups. Transition probabilities and directional flows also vary significantly. We highlight the importance of using country-specific parameters when simulating labor market and aggregate outcomes. Finally, we compare our main results with those by sex and education groups. |
| Keywords: | Latin America; Labor markets; Informality; Unemployment; Transitions |
| JEL: | E24 E26 J46 O54 |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1396 |
| By: | Nollenberger, Jeremiah |
| Abstract: | The economic literature has remarked on the stability of the German labor market, despite the severe impact of the pandemic induced recession. So, what factors contributed to this stability? The literature stresses the use of internal flexibility on firm level - reducing working hours and productivity - as key to understand safeguarding of employment. This use of internal flexibility was, in addition, strongly aided by state policies, such as short-time work. In complementarity to these arguments, the family business literature contends that family firms offer higher job security from economic shocks (implicit labor contracts). Family corporate governance is thus argued to lead to more extensive use of internal flexibility measures. To assess this argument, we analyze the German Bundesbank-Online-Panel-Firms survey (BOP-F). The data show that family firms did indeed offer higher job security. The propensity-score-matched regression estimates show family firms reacted around 50-60% less to changes in sales in terms of employment than their nonfamily firm counterparts. Looking at the use of financial instruments and government support programs, we find that family firms were more likely to use private financial instruments, such as retained earnings and private loans, whereas they were just as likely to receive government aid. Zooming out, these findings speak to family firms playing a pivotal role in preserving highly asset-specific labor market matches in times of crisis deemed essential for coordinated market economies. They do this by managing private capital differently, while not showing greater independence from the state as commonly conceived. |
| Keywords: | family firms, implicit labor contracts, Corona Crisis, employment |
| JEL: | D22 G32 J21 J50 M51 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:303516 |