nep-lma New Economics Papers
on Labor Markets - Supply, Demand, and Wages
Issue of 2025–04–28
twenty papers chosen by
Joseph Marchand, University of Alberta


  1. Workers’ exposure to AI across development By Piotr Lewandowski; Karol Madoń; Albert Park
  2. Who Works Longer Hours in Smart Cities? By Cai, Zhengyu
  3. Effects of backward GVC participation on labor market: Micro-level evidence from India By Deepali Gupta; C. Veeramani
  4. City size, employer concentration, and wage income inequality By Halvarsson, Daniel; Korpi, Martin
  5. Adaption of Digital Technologies: the Case of Latvian Firms By Konstantins Benkovskis; Styliani Christodoulopoulou; Olegs Tkacevs
  6. In Europe, Arduous Jobs Fall On First-Generation Migrants. But Later Generations Benefit From Improved Opportunities By Vandenberghe, Vincent
  7. Organized labor versus robots? Evidence from microdata By Findeisen, Sebastian; Dauth, Wolfgang; Schlenker, Oliver
  8. Let's get green: understanding green skills and jobs through online job advertisements By Emilio Colombo; Alessia De Santo; Francesco Trentini
  9. Bargaining and Inequality in the Labor Market By Sydnee Caldwell; Ingrid Haegele; J?rg Heining
  10. "Essential" Migrants: Evidence from the 2020 H-2B Visa Lottery By Parag Mahajan
  11. Estimating interaction effects with panel data By Muris, Chris; Wacker, Konstantin M.
  12. Predictive AI and productivity growth dynamics: evidence from French firms By Luca Fontanelli; Mattia Guerini; Raffaele Miniaci; Angelo Secchi
  13. Gritty peers By Adamopoulou, Effrosyni; Cao, Yaming; Kaya, Ezgi
  14. Early- and later-life stimulation: How retirement shapes the effect of education on old-age cognitive abilities By Schmitz, Hendrik; Westphal, Matthias
  15. Heterogeneity and spatial dependence in Okun's law: a global view By Maridueña-Larrea, Ángel; Martín-Román, Ángel; Porras-Arena, Sylvina
  16. Lobbying, Growth and Inequality: A Directed Technical Change model with gametheoretic microfoundations By Pedro Lima; Tiago Neves Sequeira; Óscar Afonso
  17. Shocking a CEO: Economic disintegration and executive compensation in manufacturing and services firm By Merchán, Federico; Görg, Holger
  18. A Historical Note on the Assimilation Rates of Foreign-Born Men and Women in the U.S. By Duleep, Harriet; Dowhan, Dan; Liu, Xingfei; Regets, Mark; Gesumaria, Robert
  19. Formalizing employment in Africa's small firms: Experimental evidence from Côte D'Ivoire By Fietz, Katharina; Lakemann, Tabea; Beber, Bernd; Priebe, Jan; Lay, Jann
  20. Human Capital: “Travel Broadens the Mind” By Kheng, Veasna; Pan, Lei; Fan, Xiaodong

  1. By: Piotr Lewandowski; Karol Madoń; Albert Park
    Abstract: This paper develops a task-adjusted, country-specific measure of workers’ exposure to artificial intelligence (AI) across 103 countries, covering approximately 86% of global employment. Building on the AI Occupational Exposure index by Felten et al. (2021), we map AI-related abilities to worker-level tasks using survey data from PIAAC, STEP, and CULS. We then predict occupational AI exposure in countries lacking survey data using a regression-based approach. Our findings show that accounting for within-occupation task differences significantly amplifies the development gradient in AI exposure. About 47% of cross-country variation is explained by differences in task content, particularly among high-skilled occupations. We attribute these differences primarily to cross-country differences in ICT use intensity, followed by human capital and globalisation-related firm characteristics. We also document rising AI exposure over the past decade, driven largely by changes in task composition. Our results highlight the central role of digital infrastructure and skill use in shaping global AI exposure.
    Keywords: tasks, AI, labor, technology, skills
    JEL: J21 J23 J24
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:ibt:wpaper:wp022025
  2. By: Cai, Zhengyu
    Abstract: This paper investigates how human capital concentration in cities is associated with working hours across different worker groups, an important but understudied dimension of urban agglomeration effects. Using microdata from the American Community Survey covering 240 metropolitan statistical areas in 2018, the study finds significant heterogeneous effects: a one percentage point increase in college graduate share is associated with a 0.043% increase in working hours for college graduates but a 0.023% decrease for non-college workers. The effects vary between employment types: college-educated paid workers work 0.054% more hours while the self-employed work 0.071% fewer hours in cities with higher human capital stocks. Through a two-step two-stage least squares approach, the study reveals that these effects operate primarily through income changes rather than non-income channels. Alternative measures of human capital stock and various robustness checks confirm the main findings. These heterogeneous labor supply responses suggest that the welfare impact of place-based development initiatives depends not only on productivity gains but also on workers' capacity to capture these benefits through skill development, highlighting the importance of complementing talent attraction policies with workforce development programs.
    Keywords: hours worked, human capital externalities, income, STEM, Heckman procedure
    JEL: J22 J24 R23
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1593
  3. By: Deepali Gupta (Indira Gandhi Institute of Development Research); C. Veeramani (Centre for Development Studies)
    Abstract: Several studies show that countries increasingly participate in Global Value Chains (GVC) by specialising in intermediate goods. Theoretical fragmentation models sug gest that backward GVC participation has a double advantage for a low-skilled, labour abundant country like India. It increases employment, and it reduces wage inequality. This paper assesses the impact of backward GVC participation on employment, wages, and labour productivity of workers engaged in Indian organised manufacturing indus tries. We use plant-level data provided by the Annual Survey of Industries (ASI) for 2008-09 till 2019-20. We find that GVC plants employ more workers and pay higher wages but find no significant differences in labour productivity. The share of female and contractual workers is not significantly different from non-GVC plants, but the share of production workers is slightly higher in GVC plants. We also find a lower wage gap between male and female workers; and contractual and non-contractual workers but a higher wage gap between production and non-production workers for GVC plants.
    Keywords: Global value chains, Backward GVC participation, Employment, Wage Inequality, India
    JEL: F14 F16 F66 J24 J31
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:ind:igiwpp:2025-005
  4. By: Halvarsson, Daniel (Ratio Institute); Korpi, Martin (Ratio Institute & EHFF, Stockholm School of Economics)
    Abstract: This study investigates the relationship between the urban wage premium and employer concentration using Swedish full population employer-employee data. Departing from an AKM modeling framework to distinguish worker from firm specific heterogeneity – a measure of rent-sharing – we then measure the urban wage premium using differences in the estimated firm fixed effects at the level of local industries, nested within local labor markets. Our results suggest that labor market employer concentration, as calculated using the Hirschman-Herfindahl index and a leave-one-out instrumental variable design, can account for a significant share of the estimated urban wage premium (UWP). Addressing city-level wage income inequality by applying our model to different segments of the local labor market income distribution, we find that while the UWP pertains to all income segments, it is largest for top-income levels (above the 90th percentile), and within this segment employer concentration also has the largest explanatory power. Thus, while being an important explanatory factor for all percentiles of the local income distribution, a relatively lower employer concentration within larger cities, and vice versa, higher concentration within smaller cities, primarily help explain the variance of top wages within these cities/labor markets.
    Keywords: wage distribution; rent sharing; monopsony; linked employer-employee data; local labor markets
    JEL: D22 J31 J42 R12
    Date: 2025–04–23
    URL: https://d.repec.org/n?u=RePEc:hhs:ifauwp:2025_004
  5. By: Konstantins Benkovskis (Latvijas Banka); Styliani Christodoulopoulou (European Central Bank); Olegs Tkacevs (Latvijas Banka)
    Abstract: This study examines the adoption of digital technologies by Latvian firms, focusing on the factors influencing adoption decisions and the impact of these technologies on firm performance. Using firm-level responses to the digitalisation survey, the paper covers four technologies: broadband internet, webpages, web sales, and EDI sales. The results suggest that larger firms, exporters, and those employing ICT specialists along with a higher-skilled workforce, are more inlined to adopt digital technologies. The provision of relevant training programmes for both ICT and non-ICT staff is essential for fostering technology adoption, particularly for more complex systems like web sales. To assess the impact of digitalisation on firm performance, the study employs a difference- in-differences approach, finding that webpage adoption positively affects turnover and employment, particularly in the manufacturing sector. EDI sales also enhance firm performance, boosting turnover and employment. The study emphasises the need for complementary investments in workforce skills, ICT training, and organisational re-structuring to fully realise the benefits of digital transformation.
    Keywords: digital technologies, e-commerce, firm performance
    JEL: D22 O14 O33 L25 J23 J24 F14
    Date: 2025–04–11
    URL: https://d.repec.org/n?u=RePEc:ltv:dpaper:202501
  6. By: Vandenberghe, Vincent
    Abstract: This paper contributes to the literature on migrants' labour-market disadvantages by considering one dimension that has received limited attention in Europe: their occupations' (relative) physical arduousness. To quantify their arduousness gap, the paper combines i) data from the European Labour Force Survey (LFS) informing on occupation and immigration status with ii) information on occupational arduousness from the U.S. O*NET database, categorized at the ISCO 3-digit level. The findings reveal that first-generation migrants, particularly women and/or non-EU migrants, are disproportionately concentrated in arduous jobs, experiencing a significant disadvantage in working conditions. However, this disadvantage slowly diminishes over time, with the accumulation of residency in the host country leading to improved occupational outcomes. Notably, second-generation migrants close this gap and even experience a slight advantage in work arduousness compared to native workers, pointing to complete convergence.
    Keywords: Work Arduousness, Migrant-Native Arduousness Gap, Working Conditions, Convergence
    JEL: J81 J62 J71 O15 J24
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1595
  7. By: Findeisen, Sebastian; Dauth, Wolfgang; Schlenker, Oliver
    Abstract: New technologies drive productivity growth, yet the distribution of gains may be unequal. We study how labor market institutions - specifically shop-floor worker representation - mediate the impact of automation. Combining German individual-level administrative records with plant-level data on industrial robot adoption, we find that works councils reduce the separation risk for incumbent workers during automation events. When labor markets are tight and replacement costs are high, incumbent workers become more valuable from the firm's perspective. Consequently, we document that the moderating effects of works councils diminish. Older workers, who face greater challenges reallocating to new employers, benefit the most from organized labor in terms of wages and employment. Finally, we observe that works councils do not hinder robot adoption; rather, they spur the use of higher-quality robots, encourage more worker training during robot adoption, and foster higher productivity growth thereafter.
    Keywords: automation, organized labor, work councils, labor market tightness, worker re-training
    JEL: J20 J30 J53 O33
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:315741
  8. By: Emilio Colombo; Alessia De Santo; Francesco Trentini
    Abstract: Green jobs and skills are pivotal to global and European efforts toward an environmentally sustainable economy and climate neutrality. Understanding their characteristics is vital for designing policies that address workforce challenges during this transition. Existing literature often analyzes green jobs using occupations as a proxy, either categorizing entire occupations as green or assigning greenness scores based on tasks. This study extends the analysis by focusing on green skills, leveraging data from Eurostat’s Web Intelligence Hub on Online Job Advertisements (OJA). This dataset allows us to observe skill requirements at the job advertisement level, revealing heterogeneity within occupations. We analyze green OJAs—ads featuring at least one green skill—at the ISCO IV-digit level across 26 European countries (2019–2023). We find that green OJAs are linked to higher education requirements, higher wages, and lower experience demands. Additionally, introducing an occupation greenness score, we find that green OJAs in brown occupations (jobs with zero greenness) also command a wage premium. The granularity of our data allows us to provide evidence on the specificity of skill bundles for green occupations, differences in skill demand at the extensive and intensive margin, and complementarities between green skills and other skill types. More specifically green OJAs emphasize social, communication, and management skills. They also rely more on distinctive, specialized cognitive and manual skills.
    JEL: J21 J24 J63
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:dis:wpaper:dis2503
  9. By: Sydnee Caldwell (University of California-Berkeley and NBER); Ingrid Haegele (LMU and IAB); J?rg Heining (IAB)
    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 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.
    Keywords: wage bargaining, employer-employee, Germany, wage inequality, gender wage gap
    JEL: D83 J31 J41 J53 L21
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:upj:weupjo:25-413
  10. By: Parag Mahajan (University of Delaware)
    Abstract: I study how access to foreign-born workers impacts firms and local economics in times of acute crisis. The 2020 H-2B visa lottery randomly gave some U.S. firms the chance to hire low-wage, migrant workers during the height of the COVID-19 pandemic. Using administrative data across three government agencies, I find that access to H-2B workers led to decreased business closures, increased revenues, increased payroll, and increased employment in 2020. I also find suggestive evidence that these effects spilled over to non-participant firms within the same county.
    Keywords: migrant workers, H-2B visa, COVID-19 pandemic, firm dynamics
    JEL: J23 F22 J61
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:upj:weupjo:25-414
  11. By: Muris, Chris; Wacker, Konstantin M.
    Abstract: This paper analyzes how interaction effects can be consistently estimated un- der economically plausible assumptions in linear panel models with a fixed T - dimension. We advocate for a correlated interaction term estimator (CITE) and show that it is consistent under conditions that are not sufficient for consistency of the interaction term estimator that is most common in applied econometric work. Our paper discusses the empirical content of these conditions, shows that standard inference procedures can be applied to CITE, and analyzes consistency, relative efficiency, inference, and their finite sample properties in a simulation study. In an empirical application, we test whether labor displacement effects of robots are stronger in countries at higher income levels. The results are in line with our theoretical and simulation results and indicate that standard interaction term estimation underestimates the importance of a country's income level in the relationship between robots and employment and may prematurely reject a null hypothesis about interaction effects in the presence of misspecification.
    Keywords: panel data, interaction effects, correlated random coefficients, robots
    JEL: C13 C23 C33 J23 O30
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1583
  12. By: Luca Fontanelli (University of Brescia, Department of Economics and Management, CMCC Foundation – Euro-Mediterranean Center on Climate Change); Mattia Guerini (University of Brescia, Deparment of Economics and Management and Fondazione Eni Enrico Mattei); Raffaele Miniaci (University of Brescia, Department of Economics and Management); Angelo Secchi (PSE – University Paris 1 Pantheon-Sorbonne, CMCC Foundation – Euro-Mediterranean Center on Climate Change)
    Abstract: While artificial intelligence (AI) adoption holds the potential to enhance business operations through improved forecasting and automation, its relation with average productivity growth remain highly heterogeneous across firms. This paper shifts the focus and investigates the impact of predictive artificial intelligence (AI) on the volatility of firms’ productivity growth rates. Using firm-level data from the 2019 French ICT survey, we provide robust evidence that AI use is associated with increased volatility. This relationship persists across multiple robustness checks, including analyses addressing causality concerns. To propose a possible mechanisms underlying this effect, we compare firms that purchase AI from external providers (“AI buyers†) and those that develop AI in-house (“AI developers†). Our results show that heightened volatility is concentrated among AI buyers, whereas firms that develop AI internally experience no such effect. Finally, we find that AI-induced volatility among “AI buyers†is mitigated in firms with a higher share of ICT engineers and technicians, suggesting that AI’s successful integration requires complementary human capital.
    Keywords: Artificial intelligence, productivity growth volatility, coarsened exact matching
    JEL: D20 J24 O14 O33
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:fem:femwpa:2025.11
  13. By: Adamopoulou, Effrosyni; Cao, Yaming; Kaya, Ezgi
    Abstract: We use the National Longitudinal Study of Adolescent to Adult Health to explore how high school peers' grit, a personality trait characterized by perseverance and passion, influences long-term outcomes approximately 15 years after high school. Exploiting random variation within schools across cohorts and the longitudinal nature of our data, we find t hat p eer g rit s ignificantly in creases fu ture earnings, especially for students from disadvantaged backgrounds. This implies that peer grit may help bridge socioeconomic gaps. We identify two key mechanisms: an increased likelihood of employment in jobs aligned with career goals and an increased resilience to difficulties. Additionally, peer grit leads to higher job satisfaction and asset accumulation. Thus, peer grit's effects extend beyond short-term educational performance and persist into adulthood.
    Keywords: grit, peer effects, long-term outcomes, Add Health
    JEL: I24 J13 J24
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:312578
  14. By: Schmitz, Hendrik; Westphal, Matthias
    Abstract: We study the interaction of education in adolescence and labor force participation around retirement age and its effect on cognitive abilities for individuals in Europe. Besides a direct long-run effect of education, indirect ones may arise, specifically through labor force participation. We suggest an estimator for causal mediation analysis that accommodates endogeneity and heterogeneous treatment effects and use it to identify indirect effects within the education effect. We find that education raises cognitive abilities by about 8 percent. Among the more educated, labor force participation accounts for 36 percent of the total effect, emphasizing important complementarities between education and labor force participation.
    Abstract: Wir untersuchen die Wechselwirkung zwischen der Bildung in der Jugend und der Beteiligung am Erwerbsleben im Rentenalter und ihre Auswirkungen auf die kognitiven Fähigkeiten von Personen in Europa. Neben einem direkten langfristigen Effekt der Bildung können indirekte Effekte auftreten, insbesondere durch die Erwerbsbeteiligung. Wir schlagen einen Schätzer für die kausale Mediationsanalyse vor, der Endogenität und heterogene Behandlungseffekte berücksichtigt und verwenden ihn zur Identifizierung indirekter Effekte innerhalb des Bildungseffekts. Es stellt sich heraus, dass Bildung die kognitiven Fähigkeiten um etwa 8 Prozent erhöht. Bei den höher Gebildeten ist die Erwerbsbeteiligung für 36 Prozent des Gesamteffekts verantwortlich. Dies unterstreicht die wichtigen Komplementaritäten zwischen Bildung und Erwerbsbeteiligung.
    Keywords: Cognitive abilities, causal mediation analysis, marginal treatment effects, education
    JEL: C31 J14 J24
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:rwirep:315483
  15. By: Maridueña-Larrea, Ángel; Martín-Román, Ángel; Porras-Arena, Sylvina
    Abstract: This study analyses the relationship between unemployment and economic growth at the international level, addressing the nature and decomposition of the Okun coefficient. Using World Bank data from 173 countries between 1991 and 2019, econometric techniques including decompositions and spatial dependence analysis are applied. First, the validity of Okun's law is confirmed, noting the heterogeneity of the coefficient across countries, suggesting the need for context-specific approaches to improve labour dynamics. Second, the evidence underlines the importance of labour productivity over labour supply as a key determinant of the unemployment-output relationship. Finally, the identification of spatial patterns highlights the interdependence between neighbouring economies, justifying coordinated strategies at the regional level to boost employment. These results provide valuable guidelines for the design of more effective public policies, adapted to the productive and labour realities of each country and capable of exploiting of the synergies arising from economic integration.
    Keywords: Okun's Law, Economic growth, Unemployment, Labour productivity, Labour supply, Spatial dependence, Economic integration
    JEL: C21 C32 E32 J21 R23
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1597
  16. By: Pedro Lima (University of Coimbra, CeBER and Faculty of Economics); Tiago Neves Sequeira (University of Coimbra, CeBER and Faculty of Economics); Óscar Afonso (CEF-UP, CEFAGE-UBI and Faculty of Economics of University of Porto)
    Abstract: We analyze the effects of lobbying on growth and inequality in a novel directed technical change model, where firms producing different technologies can engage in either demand-seeking lobbying-aimed at increasing demand or rent-seeking lobbying-focused on extracting economic rents. Demand-seeking lobbying promotes economic growth and, when goods are gross substitutes, also increases inequality. In contrast, rent-seeking lobbying has the opposite effects. We also develop a microfounded theoretical game that models generalized lobbying decisions. In this framework, firms from different sectors can either compete or collaborate in their lobbying efforts. The model reveals that lobbying incentives are stronger when fixed costs are low and when shared sources of lobbying efficiency outweigh sector-specific ones. Given our results, it is essential for policy to distinguish between rent-seeking and demand-seeking lobbying practices, and to design targeted incentives for each in order to effectively influence growth and inequality.
    Keywords: Lobbying; economic growth; wage inequality
    JEL: J31 P16 O30 O41
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:gmf:papers:2025-01
  17. By: Merchán, Federico; Görg, Holger
    Abstract: This paper uses the Brexit referendum in 2016 as a quasi-natural experiment to estimate the effect of an exogenous negative shock to globalization on executive compensation for German companies listed in the DAX and MDAX stock indices. We show that it matters whether they work for firms exporting goods or services. The main results indicate that executive compensation in firms operating in sectors that export services was negatively affected, in particular through lower variable compensation. On the contrary, executives of firms that operate in sectors exporting goods were not negatively affected overall, though they experienced a compositional change (from bonuses to equity payments). Sectoral regressions suggest that manufacturing firms redirected successfully exports from the UK to other relevant trade partners, while this was not the case in the service sector.
    Keywords: Brexit, executive compensation, dividend, services
    JEL: F14 F16 E24 J33 G35
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:ifwkwp:315468
  18. By: Duleep, Harriet; Dowhan, Dan; Liu, Xingfei; Regets, Mark; Gesumaria, Robert
    Abstract: The 1924 Immigration Act excluded immigrants from economically developing countries to the point of their near total exclusion. Forty years later, the 1965 Immigration and Nationality Act eliminated most discriminatory county-of-origin barriers. America's doors opened and immigration from economically developing countries soared. Fueling debates about the "quality" of immigrants from economically developing countries, empirical studies based on a wellrespected methodology conclude that post-1965 immigrant men have low initial earnings and sluggish earnings growth. This methodology is based on flawed assumptions (Duleep, Liu, and Regets, 2022). Removing these assumptions reveals high earnings growth for post-1965 immigrant men in accordance with the Immigrant Human Capital Investment Model (Duleep and Regets, 1999). A similar story emerges for immigrant women, contradicting the Family Investment Hypothesis first put forth by Long (1980) and Duleep and Sanders (1993). It appears a pre- 1965/post-1965 transition occurred in the earnings profiles of U.S. immigrants, from earnings resembling those of U.S. natives to low initial earnings but much higher earnings growth than their U.S.-born statistical twins. The transition underlies the overtime success story of immigrant families from economically developing countries (Duleep, Regets, Sanders, and Wunnava, 2021); the high earnings growth reflects human capital investment that invigorates the economy (Duleep, Jaeger, and McHenry, 2018; Green, 1999, Green and Worswick, 2012).
    Keywords: Immigrant earning growth, human capital investment, skill transferability, immigrant quality, sample restrictions, family investment hypothesis, nonparametric estimation
    JEL: J15 J16 J24 J31 C1
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1596
  19. By: Fietz, Katharina; Lakemann, Tabea; Beber, Bernd; Priebe, Jan; Lay, Jann
    Abstract: Informal, low-quality employment in micro, small, and medium enterprises (MSMEs) remains a significant challenge in low- and middle-income countries. We present evidence from an impact evaluation of a light-touch business consulting program with a focus on employment formalization in Côte d'Ivoire. Using a randomized controlled trial with 448 MSMEs and a unique employer-employee dataset, we find that the intervention led to employment formalization, driven by greater reported minimum wage compliance and an increase in written contract provision. We show suggestive evidence that these improvements were driven by selective formalization and increased awareness of regulation. The intervention's financial implications were moderate, with findings indicating that firms partially formalized previously informal payment streams, without a significant increase in total labor costs.
    Abstract: Informelle, niedrigqualitative Beschäftigung in Mikro-, kleinen und mittleren Unternehmen (MSMEs) bleibt eine bedeutende Herausforderung in Ländern mit niedrigem und mittlerem Einkommen. Wir zeigen Evidenz aus einer Wirkungsevaluierung eines niedrigschwelligen Unternehmensberatungsprogramms mit Fokus auf die Formalisierung von Beschäftigung in Côte d'Ivoire. Mithilfe einer randomisierten kontrollierten Studie mit 448 MSMEs und einem innovativen Arbeitgeber-Arbeitnehmer-Datensatz stellen wir fest, dass die Intervention zur Formalisierung von Beschäftigung führte, angetrieben durch eine stärkere Einhaltung des Mindestlohns und eine Zunahme der Bereitstellung schriftlicher Verträge. Hinweise deuten darauf hin, dass diese Verbesserungen durch selektive Formalisierung und ein erhöhtes Bewusstsein für Regulierung bedingt waren. Die finanziellen Auswirkungen der Intervention waren moderat. Die Ergebnisse legen nahe, dass Unternehmen zuvor informelle Zahlungsströme teilweise formalisierten, ohne dass es zu einem signifikanten Anstieg der Gesamtarbeitskosten kam.
    Keywords: Employment formalization, business consulting, micro, small and medium enterprises(MSMEs), randomized controlled trial (RCT), Côte d'Ivoire
    JEL: O12 O17 J46 J81
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:rwirep:315486
  20. By: Kheng, Veasna; Pan, Lei; Fan, Xiaodong
    Abstract: This paper adopts an economic framework to examine the impact of interna- tional travel on human capital development. Using a fixed-effects instrumental variable estimator as the primary analytical approach, the study investigates a panel dataset covering 64 countries from 1995 to 2019. The findings reveal that international travel, measured through tourism openness, has a significant positive effect on human capital. These results underscore the importance of global human mobility—encompassing migration, international educational exchange, and tourism—in fostering the development and dissemination of knowledge, culture, and technology.
    Keywords: travel; human capital development; economic growth and development
    JEL: C23 J24 O40
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124156

This nep-lma issue is ©2025 by Joseph Marchand. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.