|
on Labor Markets - Supply, Demand, and Wages |
| By: | Pouliakas, Konstantinos (European Centre for the Development of Vocational Training (Cedefop)); Santangelo, Giulia (European Centre for the Development of Vocational Training (Cedefop)) |
| Abstract: | Understanding the labour market impact of new, autonomous digital technologies, particularly generative or other forms of artificial intelligence (AI), is currently at the top of the research and policy agenda. Many initial studies, though not all, have shown that there is a wage premium to AI skills in labour markets. Such evidence tends to draw on data from web-based sources and typically deploys a keyword approach for identifying AI skills. This paper utilises representative adult workforce data from 29 European countries, the second European skills and jobs survey, to examine wage differentials of the AI developer workforce. The latter is uniquely identified as part of the workforce that writes programs using AI algorithms. The analysis shows that, on average, AI developers enjoy a significant wage premium relative to a comparably educated or skilled workforce, such as programmers who do not yet write code using AI at work. Wage decomposition analysis further illustrates that there is a large unexplained component of such wage differential. Part of AI programmers' larger wage variability can be attributed to a greater performance-based component in their wage schedules and higher job-skill requirements. |
| Keywords: | artificial intelligence, skills, wage differentials, performance-based pay |
| JEL: | J24 J31 J71 M52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17607 |
| By: | Zoe B. Cullen; Bobak Pakzad-Hurson; Ricardo Perez-Truglia |
| Abstract: | We estimate the value employees place on remote work using revealed preferences in a high-stakes, real-world context, focusing on U.S. tech workers. On average, employees are willing to accept a 25% pay cut for partly or fully remote roles. Our estimates are three to five times that of previous studies. We attribute this discrepancy partly to methodological differences, suggesting that existing methods may understate preferences for remote work. Because of the strong preference for remote work, we expected to find a compensating wage differential, with remote positions offering lower compensation than otherwise identical in-person positions. However, using novel data on salaries for tech jobs, we reject that hypothesis. We propose potential explanations for this puzzle, including optimization frictions and worker sorting. |
| JEL: | J24 J31 M54 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33383 |
| By: | Julien Albertini (University Lumière Lyon 2, CNRS, Université Jean Monnet Saint-Etienne, emlyon business school, GATE, 69007, Lyon, France); Arthur Poirier (LEDa, Paris Dauphine University); Anthony Terriau (GAINS, Le Mans University) |
| Abstract: | Introduced in France in the 1990s to reduce the cost of low-skilled labor, payroll tax reductions on low wages were later expanded and extended to higher wages. This study evaluates the impact of the current payroll tax schedule on employment, fiscal surplus, and welfare. We develop a life-cycle matching model in which workers are heterogeneous in terms of age, education, human capital, family status, hours worked and idiosyncratic productivity, and where search effort, hiring and separations are endogenous. Accounting for interactions with the socio-fiscal system, we demonstrate that reducing payroll tax cuts for low wages would result in declines in both employment and fiscal surplus. Furthermore, we show that increasing the minimum wage would significantly reduce employment and fiscal surplus, with the magnitude of the effect depending on whether the payroll tax schedule and other socio-fiscal measures are indexed to the minimum wage. Lastly, we identify the optimal payroll tax schedule, revealing that employment, fiscal surplus, and welfare can all be improved by increasing payroll tax reductions for wages near the minimum wage while reducing them for wages exceeding twice the minimum wage. |
| Keywords: | Payroll Tax Reductions; Minimum Wage; Search and Matching; Life Cycle |
| JEL: | J23 J31 J32 J38 J64 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gat:wpaper:2501 |
| By: | Bertoni, Marco (University of Padova); Meli, Francesca (University of Padova); Rocco, Lorenzo (University of Padova) |
| Abstract: | We estimate the effect of sleep on labor productivity addressing the two main challenges in time use research: the unavoidable substitutions among activities implied by the time budget constraint and the endogeneity of the allocation of time. We use complete time diary data to identify the relative effect of sleep vs. non-work activities among employees working the same number of hours, and account for the endogeneity of time use choices by leveraging longitudinal information on productivity in a value-added specification. We show that, when work hours are held constant, substituting sleep with other non-work activities does not affect labor productivity. |
| Keywords: | sleep, time use, productivity |
| JEL: | J22 J24 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17618 |
| By: | Sydnee Caldwell; Ingrid Haegele; Jörg Heining |
| Abstract: | We use novel surveys of firms and workers, linked to administrative employer-employee data, to study the prevalence and importance of individual bargaining in wage determination. We show that simple survey questions accurately elicit firms’ bargaining strategies. Using the elicited strategies for 772 German firms, we document that the majority of firms are willing to engage in individual wage bargaining. Labor market factors predict firms’ strategies better than firm characteristics. Survey responses from nearly 10, 000 full-time workers indicate that most worker-firm interactions begin with the worker providing their salary expectations. Most interactions end with the worker rejecting the offer and remaining at the incumbent firm. There is substantial heterogeneity in workers’ bargaining behavior, which translates into within-firm wage inequality. Firms that set pay via individual bargaining have a 3 percentage point higher gender wage gap. |
| JEL: | J30 J31 J42 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33396 |
| By: | José Alberto Fuinhas (Faculty of Economics, and Centre for Business and Economics Research (CeBER), University of Coimbra); Asif Javed (School of Advanced Studies, University of G. D'Annunzio Chieti-Pescara); Dario Sciulli (Department of Economic Studies, University of G. D'Annunzio Chieti-Pescara); Edilio Valentini (Department of Economic Studies, University of G. D'Annunzio Chieti-Pescara) |
| Abstract: | Governments across the globe are implementing stricter environmental policies to combat climate change and promote sustainability. This study contributes to the growing literature exploring the influence of environmental policy on skill-biased employment across various occupations. Specifically, we examine the causal effect of the revised version of Environmental Policy Stringency Index (EPS) and its components on skill-biased employment, focusing on occupations such as managers, professionals, technicians, and manual workers across 21 European economies from 2008 to 2020. Using the Method of Moments Quantile Regression (MMQR), the findings reveal that stringent environmental policies affect employment shares across different occupational categories. Skilled workers tend to benefit more from such policies, with a notable increase in the employment of professionals across all policy measures and a more differentiated impact among technicians and managers. In contrast, manual workers are generally adversely affected by environmental policies. These asymmetric effects on occupations exacerbate labour market inequalities, including disparities in employment levels and potential earnings. This research highlights the importance of designing tailored policies to mitigate adverse labour market outcomes while facilitating a transition to sustainable economic practices. |
| Keywords: | Environmental policy stringency, Skilled workers, Employment, Method of Moments Quantile Regression |
| JEL: | Q58 J24 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.02 |
| By: | Hennecke, Juliane (Otto-von-Guericke University Magdeburg); Knabe, Andreas (Otto-von-Guericke University Magdeburg) |
| Abstract: | This paper examines the relationship between flexible working arrangements (FWA) and workers' affective well-being (AWB), using data from the American Time-Use Survey (ATUS) and the Occupational Information Network (O*NET). We analyze differences in workers' emotional experiences during paid work, unpaid work, and leisure depending on the general availability of FWA within their occupation. Our findings reveal a significant negative association between teleworkability and AWB during labor activities for women, resulting in reduced day-average emotional well-being if jobs are also time-flexible. In contrast, we do not find significant associations between FWA and AWB during paid work for men. Additionally, we find no evidence of systematic spillovers to the AWB in non-labor activities for both men and women. Further nuanced findings regarding parents and the role of time flexibility underscore potential gender differences in the impact of FWA on well-being. |
| Keywords: | flexible working arrangements, affective well-being, telework, working from home, work and family, work-life balance, gender differences |
| JEL: | J22 J81 D91 I31 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17634 |
| By: | Francisco Cabrera-Hernandez (Department of Economics, CIDE); Mateo Hoyos (Department of Economics, CIDE); Emmanuel Chavez (Department of Economics, CIDE) |
| Abstract: | This paper examines the impact of import competition on educational attainment in Mexico, emphasizing its effects through labor market dynamics. Using China's entry into global trade markets as a source of exogenous variation, we implement a shift-share approach to measure regional exposure to Chinese imports and employ a staggered difference-in-differences estimation strategy—marking a novel contribution to the China Shock literature. Our analysis reveals that import competition negatively affected educational outcomes, increasing dropout rates and the proportion of students falling behind their normative grade. These outcomes were accompanied by sustained wage declines, particularly in the secondary and tertiary sectors. We identify a significant decline in the returns to schooling as the primary mechanism explaining the adverse educational effects. Our findings offer novel empirical evidence linking import competition to reduced returns to schooling. |
| Keywords: | China Shock, import competition, educational attainment, returns to schooling |
| JEL: | F14 F16 I25 I26 J24 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte645 |
| By: | Lance Lochner; Youngmin Park; Youngki Shin |
| Abstract: | Economists disagree about the factors driving the substantial increase in residual wage inequality in the US over the past few decades. To identify changes in the returns to unobserved skills, we make a novel assumption about the dynamics of skills rather than about the stability of skill distributions across cohorts, as is standard. We show that our assumption is supported by data on test score dynamics for older workers in the HRS. Using survey data from the PSID and administrative data from the IRS and SSA, we estimate that the returns to unobserved skills $declined$ substantially in the late-1980s and 1990s despite an increase in residual inequality. Accounting for firm-specific pay differences yields similar results. Extending our framework to consider occupational differences in returns to skill and multiple unobserved skills, we further show that skill returns display similar patterns for workers employed in each of cognitive, routine, and social occupations. Finally, our results suggest that increasing skill dispersion, driven by rising skill volatility, explains most of the growth in residual wage inequality since the 1980s. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.09917 |
| By: | Kambayashi, Ryo (Musashi University); Kawaguchi, Kohei (Hong Kong University of Science & Technology); Otani, Suguru (University of Tokyo) |
| Abstract: | This study estimates and decomposes recruitment elasticity, a key measure of employer market power, across job-matching stages using data from Japan's largest job-matching intermediary. On average, recruitment elasticity is negative but not statistically significantly different from zero. However, this masks heterogeneity across stages. The negative elasticity arises from lower-wage workers avoiding higher-wage vacancies during inquiry. Posted wages positively influence application, interview attendance, and offer acceptance decisions, with elasticity decreasing in that order. Other important patterns are also examined. |
| Keywords: | market power of employers, monopsony, job matching intermediary, recruitment elasticity, inquiry, application, interview, offer, control function approach |
| JEL: | J20 J30 J42 J64 L13 L40 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17613 |
| By: | Joanne S. McLaughlin; David Neumark |
| Abstract: | We present new and rich evidence on intersectional discrimination in labor markets, focusing on wages in the traditional residual wage differential approach to discrimination. We interpret “intersectional discrimination” in the framework of interactions, in which discrimination along two intersecting dimensions leads to discrimination that exceeds the sum of its parts. We make three contributions. First, we resolve puzzling contradictory findings on intersectional discrimination in existing research – with studies using similar data and methods reaching diametrically opposite conclusions. Second, we extend the analysis of potential intersectional discrimination to more dimensions than have typically been considered in past research. Third, we explore issues of bias in the wage equations we estimate from selection on employment. Our overall conclusion from these different types of evidence is that there is little or no evidence consistent with intersectional discrimination in wage differentials among the large set of groups (and combinations of groups) we study, and indeed most evidence points in the opposite direction. |
| JEL: | J7 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33388 |
| By: | Leila Bengali; Robert G. Valletta; Cindy Zhao |
| Abstract: | After growing substantially during the 1980s through the early 2000s, the college wage premium more recently has been largely unchanged, or stagnant. We extend the canonical production-function model of skill premiums to assess supply and demand contributions to the slowdown in the college wage premium, using annual CPS ASEC data from the early 1960s through 2023. To account for the rising importance of women in the college educated workforce, we estimate a hybrid model that incorporates components that are disaggregated by age and gender. We also allow for non-linearities and changes over time in the parameters of the aggregate production function. Our results suggest that the recent stagnation of the college wage premium primarily reflects demand factors, specifically a slowdown in the pace of skill-biased technological change. |
| Keywords: | college wage premium; educational attainment; labor supply; education; substitution |
| JEL: | I2 J2 J38 |
| Date: | 2025–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedfwp:99485 |
| By: | Sockin, Jason (Cornell University); Sockin, Michael (University of Texas at Austin) |
| Abstract: | Firms differ in the extent to which they use variable pay. Using U.S. employeeemployer matched data on variable pay from Glassdoor, we document such dispersion and find workers are exposed to firm-level shocks through variable pay. Credit rating downgrades from investment to speculative grade, negative shocks to financial or operational performance, and greater exposure to a financial crisis, as proxied for by the collapse of Lehman Brothers, induce firms to shift compensation toward base pay. Increased use of variable pay is associated with greater earnings variance for workers but less volatile growth for firms. We rationalize these findings in a model of risk sharing between a risk-averse firm and workers with limited commitment. |
| Keywords: | risk sharing, bonuses, firm-specific shocks, employment volatility, layoffs |
| JEL: | J33 E24 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17644 |
| By: | Eliana Coschignano; Robin Jessen |
| Abstract: | Men at the bottom quintile of the German male earnings distribution had lower average earnings in 2019 than in 2001. In contrast, female earnings have increased throughout the distribution. What explains these diverging trends and how did they translate into changes in net income? Data from the Socio-Economic Panel (SOEP) reveal that the drop in bottom male earnings is mostly due to a decrease in work hours, while hours worked of females with low earnings have increased. Changes in socio-demographic characteristics explain little of the evolution of income inequality. Households and the welfare state have cushioned much of low-earning men’s income drop, while disposable incomes of women have increased by less than their earnings. Finally, earnings poverty is persistent: About half of individuals in the bottom quintile are still in the bottom quintile after five years. |
| Keywords: | income inequality, earnings inequality, working hours, decomposition |
| JEL: | D31 I38 J3 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1217 |
| By: | Yang, Tianli (Renmin University of China); Zhao, Zhong (Renmin University of China) |
| Abstract: | The Chinese government announced the pilot of public long-term care insurance (LTCI) policy in 2016. While most studies focus on LTCI's effects on labor supply and retirement behavior, its effect on retirement intentions, which offer certain advantages over actual behavior, remains unclear. This study applies the difference-in-differences design to estimate the effect of LTCI on urban workers' retirement intentions based on the Chinese Longitudinal Healthy Longevity Survey. The results indicate that LTCI significantly increases the probability of intentions to delay retirement and intended retirement age, especially for the LTCI providing both service and cash benefits. Moreover, the effects are larger and more significant among subgroups, including women, self-employed workers and workers' family members with LTCI eligibility, as these sub-samples are more likely to be caregivers and caregivers' effect is larger. Mechanism analysis reveals that LTCI reduces time support within the family and improves mental health, both of which contribute to delayed retirement intentions. The negative effect of mitigating precautionary saving motives caused by LTCI also exists but subtler. Overall, these empirical evidences support that LTCI helps shape workers' retirement intentions. |
| Keywords: | long-term care insurance, retirement intentions, difference-in-differences, China |
| JEL: | H55 I28 J14 J26 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17642 |
| By: | Herbert Schuetze (Department of Economics, University of Victoria); Brianna Perry |
| Abstract: | Technological advancements are expanding self-employment opportunities, but recent economic shocks have highlighted the risks and consequences of failure on the self-employed. Despite this, few studies have studied the income or labour market consequences of business failure in Canada. Using longitudinal data from the Canadian Survey on Labour and Income Dynamics (SLID) for 2005 to 2010, we examine the short-term labour market consequences and immediate income effects of business failure compared to similar wage employees who involuntarily lose their jobs. Perhaps due to financial pressures, own account (do not employ paid workers) unincorporated self-employed job losers are more likely to be employed one year post job loss, but less likely to work full-time, relative to wage employed job losers. Moreover, self-employment spells ending in failure are still a major predictor of working outside wage employment one year post job loss compared to similar wage employed job losers. We find that, relative to wage employed job losers, self-employed job losers experience larger reductions in weekly income immediately following job loss. Full-time own account unincorporated self-employed workers are especially at risk of income disruption due to business failure relative to similar full-time wage employed job losers. JEL Classification: J21, J22, J38, J48 |
| Keywords: | Self-employment, business failure, job loss, earnings, employment outcome |
| Date: | 2024–12–19 |
| URL: | https://d.repec.org/n?u=RePEc:vic:vicddp:2407 |
| By: | Aparicio Fenoll, Ainoa (University of Turin); Fernandez-Baldor Laporta, Pablo (University of Geneva); Vall Castello, Judit (University of Barcelona) |
| Abstract: | Dual labor markets are characterized by a group of workers with permanent jobs and a stable income source and another group with short-term contracts who suffer from income uncertainty and employment volatility. These differences in job security translate into several spheres of these workers' lives, with potential implications for families' well-being. This paper analyzes the causal effect of parental job security on children's health. To address endogeneity, we exploit a reform that incentivized secure labor contracts for young (under 30) and female workers in Spain by reducing payroll taxes paid by employers. Using data from several waves of the Spanish National Health Survey and combining Instrumental Variables and Differences-in-Differences methods, we find that having a secure labor contract increases the probability that children are in good or very good health by 20%. We also document some mechanisms, such as reductions in children's accidents, increases in the frequency of physical activity, and a more protein-intense diet. |
| Keywords: | job security, children's health |
| JEL: | I14 I12 J41 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17625 |
| By: | Allan, Corey; Maré, David C. (Motu Economic and Public Policy Research Trust); Hyslop, Dean R. (Motu Economic and Public Policy Research Trust) |
| Abstract: | We examine employer monopsony power in the New Zealand private sector labour market. New Zealand has a small, geographically dispersed population, meaning that outside employment options for workers may be limited. However, New Zealand is generally considered to have a flexible labour market with large gross labour market flows. Using firm and individual level microdata from StatsNZ's Longitudinal Business Database (LBD) and Integrated Data Infrastructure (IDI), we estimate monopsony power based on separation elasticities, on the estimated marginal product-wage wedge, and by direct estimation of firm-level labour supply elasticities. Estimates based on separation elasticities and the marginal product-wage wedge are reasonably consistent, with an implied wage markdown of at most 25%, on average. Direct estimates of labour supply elasticities are sensitive to small changes in specification, highlighting the identification difficulties. Our estimates based on separation elasticities and marginal product-wage wedges are broadly consistent with recent international evidence. These results suggest the presence of employer monopsony power in New Zealand's private sector, although the extent of that power may be limited. |
| Keywords: | monopsony, wage setting, worker mobility |
| JEL: | J42 J63 M50 D20 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17614 |
| By: | Kaludia Rzepnicka; Emma Sharland; Marta Rossa; Ted Dolby; Ekaterina Oparina; Rob Saunders; Daniel Ayoubkhani; Vahe Nifilyan |
| Abstract: | People suffering from common mental disorders (CMD) such as depression and anxiety are more likely to be economically inactive. Psychological therapies are highly effective at treating CMDs but less is known about their impact on long-term labour market outcomes. Using national treatment programme data in England, NHS Talking Therapies (NHSTT), with unique linkage to administration data on employment and census records, we estimated the causal effects of NHSTT on employment and earnings. Overall, completing treatment led to a maximum average increase of £17 in monthly earnings (year two) and likelihood of paid employment by 1.5 percentage points (year seven). Those 'Not working, seeking work' saw a maximum average increase in pay of £63 per month (year seven) and likelihood of paid employment by 3.1 percentage points (year four). Our findings demonstrate the economic benefits of treating CMDs, and how investing in mental health can impact labour market participation. |
| Keywords: | mental health, employment, earnings, policy evaluation, psychological therapies |
| Date: | 2025–01–28 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2070 |
| By: | Mogstad, Magne (Dept. of Economics, University of Chicago); Salvanes, Kjell G. (Dept. of Economics, Norwegian School of Economics and Business Administration); Torsvik, Gaute (Dept. of Economics, University of Oslo) |
| Abstract: | Policymakers, public commentators, and researchers often cite the Nordic countries as examples of a social and economic model that successfully combines low income inequality with prosperity and growth. This article aims to critically assess this claim by integrating theoretical perspectives and empirical evidence to illustrate how the Nordic model functions and why these countries experience low inequality. Our analysis suggests that income equality in the Nordics is primarily driven by a significant compression of hourly wages, reducing the returns to labor market skills and education. This appears to be achieved through a wage bargaining system characterized by strong coordination both within and across industries. This finding contrasts with other commonly cited explanations for Nordic income equality, such as redistribution through the taxtransfer system, public spending on goods that complement employment, and public policies aimed at equalizing skills and human capital distribution. We consider the potential lessons for other economies that seek to reduce income equality. We conclude by discussing several underexplored or unresolved questions and issues. |
| Keywords: | Policymakers; Low income inequality; Nordic countries; Public policies; Human capital distribution |
| JEL: | H24 H26 H41 |
| Date: | 2025–02–06 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2025_003 |
| By: | Majid Ahmadi; Gwen-Jirō Clochard; Jeff Lachman; John A. List |
| Abstract: | When multiple forces potentially underlie discriminatory behavior, pinning down the precise sources becomes a challenge, making proposed policy solutions speculative. This study introduces an empirical approach, tightly linked to theory, to dissect two specific channels of discrimination: customer bias and managerial bias. To illustrate our framework, we integrate proprietary data with several publicly available datasets to uncover channels of discrimination within the Major League Baseball draft. Our analysis reveals that customer preferences significantly influence the drafting of players at the top end of the draft—those likely to gain immediate public attention and eventually play for the club. Conversely, we observe managerial homophily in the latter parts of the draft, where players who attract little attention and have minimal chances of playing for the club are selected. The observed preferential bias at both ends of the draft incurs a substantial opportunity cost. However, bias at the top end unduly affects competitiveness. Our findings provide significant implications for future research on measuring discrimination and addressing the challenge of multiple channels. |
| JEL: | J70 J71 M51 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33391 |
| By: | Guillaume Bazot (Aix Marseille University, CNRS, AMSE); David Guerreiro (LED, University Paris 8) |
| Keywords: | labor share, task displacement, automation, labor rents, capital rents, markup, rate of return on capital, productivity |
| JEL: | E2 E4 J3 N12 O4 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:aim:wpaimx:2503 |
| By: | Casas, Pablo; Christou, Tryfonas; García Rodríguez, Abián; Lazarou, Nicholas Joseph; Salotti, Simone |
| Abstract: | We provide a macroeconomic evaluation of the impact of the 2014-2020 European Social Fund, the Youth Employment Initiative and the labour market interventions of the REACT-EU programme, using data updated to the end of 2023. We use the spatial dynamic general equilibrium model RHOMOLO, modified to include endogenous labour force participation, to analyse the impact of nearly €110 billion in total, showing how GDP, employment, wages and various measures of inequality respond to the policies. The results suggest that the European labour market policy has a substantial positive impact on the regional economies of the Union and on the labour force, with long-lasting positive effects on GDP and employment, and a reduction in regional disparities and macroeconomic educational mismatches. |
| Keywords: | European Social Fund, regional labour markets, general equilibrium modelling. |
| JEL: | C68 J20 J30 R13 |
| Date: | 2025–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123410 |
| By: | Bayari, Celal |
| Abstract: | Japan’s national hospital system, which consists of a combination of private, national, prefectural and metropolitan hospitals, is the largest employers of the of the doctors. The article provides details on the women doctors’ discontinuous workforce participation in the Japanese hospital system, the dominance of part-time work patterns, and the nature of inflexibility in the work structures that disallow the maintenance of separate work and life spheres. This paper further discusses the effects of the COVID 19 pandemic on Japanese healthcare provision structures in hospitals and the extensive inhibitions that the pandemic placed on the careers of women doctors. The article details the nature of the chronic doctor shortage in Japan, and professional burnout incidences among the women doctors, and how the COVID 19 pandemic intensified these two factors. The analysis herein raises the policy issues at government and workplace level. The article argues that the establishment of free and universal childcare facilities, and family caregiving mechanisms via government fiscal restructuring would assist in the dissolution of gendered work patterns. |
| Keywords: | Burnout, gender gap, Japan, women doctors, workforce participation |
| JEL: | D13 D31 D6 D63 H5 H51 H52 H53 H55 I11 I13 I15 I18 J3 J31 J4 J41 J44 J45 J53 J58 J7 J71 K1 K12 P16 P43 P46 R1 R12 R13 Z13 |
| Date: | 2025–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123405 |
| By: | Efi Adamopoulou; Anne Hannusch; Karen Kopecky; Tim Obermeier |
| Abstract: | Why do U.S. college-educated couples with children marry at higher rates than those without a college degree? We argue that investing in children is more valuable for college-educated couples, who are more likely to send their children to college. Marriage, which entails lower separation risk and more equal asset division if separation does occur, provides insurance to the lower-earning spouse, which facilitates child investment. Using an OLG model of marriage, cohabitation, wealth accumulation, and educational investments where college completion is risky, we find that insurance through marriage is particularly important when investing in children is costly and college costs are high. |
| Keywords: | cohabitation, marriage, child development, time and money investments, human capital accumulation, college costs |
| JEL: | D15 E24 J12 J22 J24 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_628 |
| By: | Do Won Kwak; Jong-Wha Lee |
| Abstract: | Increasing life expectancy poses significant challenges to the employment and quality of life of older adults. This study examines the impact of retirement and re-employment on the health of older adults in Korea, utilizing longitudinal data from 2008 to 2020. We employ the instrumental variables method to estimate causal effects by leveraging variations in pension eligibility age and benefit amounts. The results reveal that retirement leads to a significant deterioration in health outcomes, including self-rated health, chronic diseases, and depression among older individuals. Conversely, re-employment after retirement is associated with a notable improvement in overall health. We find that retirement and re-employment influenced retirees’ health by changing their engagement in physical and social activities. These results suggest that policies encouraging late retirement or facilitating new employment opportunities and social activities post-retirement may mitigate or delay adverse health outcomes among older adults. |
| Keywords: | aging, depression, health, retirement, re-employment |
| JEL: | I12 J14 J26 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-08 |
| By: | Carina Neisser (University of Cologne & IZA); Nils Wehrhöfer (Deutsche Bundesbank) |
| Abstract: | Public disclosure laws on politicians’ outside income aim to enhance electoral accountability, but their effects remain unclear and may backfire. Using a German disclosure reform, administrative tax data, and a difference-in-difference design, we show that MPs increased their outside income after public disclosure. We find suggestive evidence that the effect is driven by right-leaning MPs. A survey among voters shows that perceptions of outside income differ by party alignment: right-leaning voters view it as a sign of competence, while left-leaning voters associate it with weaker voter representation. These findings highlight the complex interplay between transparency, voter perception, and political behavior. |
| Keywords: | Tax data, outside income, politicians, income disclosure |
| JEL: | D72 D83 J45 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:354 |
| By: | Zong, Xiaoxue; Huang, Kaixing; Ji, Xi |
| Abstract: | Land use policy is crucial for food security and ecological protection. This study explores the impact of the world’s largest Grain for Green Program, which subsidizes more than 100 million farmers to convert sloped cropland to forests and grasslands, on crop productivity in China. By combining detailed county-level crop production data with remote sensing data, our difference-in-differences estimates suggest that while the program significantly reduced total cropland area, it led to an increase in total crop yield. The unexpected yield impact can be explained by the fact that the program significantly increased labor input and multiple cropping in the remaining cropland. More importantly, we find that the program substantially reduced the damage of drought and extreme heat on crop yield. Our findings suggest the possibility of adopting land use policy to protect the ecology without compromising food security in a developing country. |
| Keywords: | land use, food security, ecological protection, climate shocks, Grain for Green |
| JEL: | J43 Q15 Q18 Q54 |
| Date: | 2025–01–26 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123478 |