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on Labor Markets - Supply, Demand, and Wages |
| By: | Teo Firpo (Humboldt-Universität zu Berlin); Lukas Niemann (Tanso Technologies); Anastasia Danilov (Humboldt-Universität zu Berlin) |
| Abstract: | As firms increasingly adopt Artificial Intelligence (AI) technologies, how they adjust hiring practices for skilled workers remains unclear. This paper investigates whether AI-related skills are rewarded in talent recruitment by conducting a large-scale correspondence study in the United Kingdom. We submit 1, 185 résumés to vacancies across a range of occupations, randomly assigning the presence or absence of advanced AI-related qualifications. These AI qualifications are added to résumés as voluntary signals and not explicitly requested in the job postings. We find no statistically significant effect of listing AI qualifications in résumés on interview callback rates. However, a heterogeneity analysis reveals some positive and significant effects for positions in Engineering and Marketing. These results are robust to controlling for the total number of skills listed in job ads, the degree of match between résumés and job descriptions, and the level of expertise required. In an exploratory analysis, we find stronger employer responses to AI-related skills in industries with lower exposure to AI technologies. These findings suggest that the labor market valuation of AI-related qualifications is context-dependent and shaped by sectoral innovation dynamics. |
| Keywords: | return to skills; technological change; labor market; hiring; signaling; human capital; field experiment; ai-related skills; |
| JEL: | O33 J23 J24 I26 |
| Date: | 2025–11–17 |
| URL: | https://d.repec.org/n?u=RePEc:rco:dpaper:552 |
| By: | Alexander Bertermann (ifo Institute, University of Munich); Wolfgang Dauth (Institute for Employment Research (IAB), University of Bamberg); Jens Suedekum (DICE, Heinrich-Heine-Universität Düsseldorf); Ludger Woessmann (University of Munich, ifo Institute) |
| Abstract: | How do firms and workers adjust to trade and technology shocks? We analyze two mechanisms that have received little attention: training that upgrades skills and early retirement that shifts adjustment costs to public pension systems. We combine novel data on training participation and early retirement in German local labor markets with established measures of exposure to trade competition and robot adoption. Results indicate that negative trade shocks reduce training—particularly in manufacturing—while robot exposure increases training—particularly in indirectly affected services. Both shocks raise early retirement among manufacturing workers. Structural change thus induces both productivity-enhancing and productivity-reducing responses, challenging simple narratives of labor market adaptation and highlighting the scope for policy to promote adjustment mechanisms conducive to aggregate productivity. |
| Keywords: | training; retirement; trade; technological change; automation; robots; firms; workers; labor market; |
| JEL: | J24 J26 O33 F16 R11 |
| Date: | 2025–11–11 |
| URL: | https://d.repec.org/n?u=RePEc:rco:dpaper:551 |
| By: | Brüll, Eduard; Mäurer, Samuel; Rostam-Afschar, Davud |
| Abstract: | We provide experimental evidence on how employers adjust expectations to automation risk in high-skill, white-collar work. Using a randomized information intervention among tax advisors in Germany, we show that firms systematically underestimate automatability. Information provision raises risk perceptions, especially for routine-intensive roles. Yet, it leaves short-run hiring plans unchanged. Instead, updated beliefs increase productivity and financial expectations with minor wage adjustments, implying within-firm inequality like limited rent-sharing. Employers also anticipate new tasks in legal tech, compliance, and AI interaction, and report higher training and adoption intentions. |
| Keywords: | Artificial Intelligence, Automation, Technological Change, Innovation, Technology Adoption, Firm Expectations, Belief Updating, Expertise, Labor Demand, White Collar Jobs, Training |
| JEL: | J23 J24 D22 D84 O33 C93 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:333393 |
| By: | Stanislav Avdeev |
| Abstract: | This paper provides the first evidence on the impact of exposure to international students on the long-term outcomes of native students. I combine unique survey and administrative data from the Netherlands covering one million students across three decades and employ an across-cohort design. I find that exposure to international students leads natives to (i) form social ties with non-natives, (ii) hold more positive attitudes towards migration and learning about other cultures, and (iii) seek opportunities abroad. Notably, I find precisely estimated zero effects on employment, income, entrepreneurship, and the share of international co-workers up to 25 years after university entry. |
| Keywords: | contact hypothesis, domestic students, foreign students, higher education, labor market, mobility, networks, peer effects, emigration |
| JEL: | F22 I23 J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12283 |
| By: | Daniel Fershtman; Kfir Eliaz; Alexander Frug |
| Abstract: | We study optimal dynamic scheduling of workers to tasks when task completion is privately observed —so that workers can delay the release of finished tasks — and idle time is the only available incentive instrument. We characterize a scheduling rule, and its induced equilibrium, that maximizes expected discounted output. Unless workers are inherently slow, production alternates between efficient phases and delays. Our analysis reveals a trade-off between the quality and the size of the workforce. We also present several extensions, illustrating the versatility of the framework. |
| Keywords: | moral hazard , strategic servers , non-monetary incentives , optimal scheduling , idle time , multi-server systems |
| JEL: | D82 J24 C73 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:upf:upfgen:1928 |
| By: | Sturm, Patrick |
| Abstract: | This paper studies firm adjustments in response to a working life extension of older female employees. Specifically, I exploit the German 1999 pension reform that eliminated an early retirement pathway for women, causing an increase in their early retirement age by three years for those born after January 1, 1952. Using high-quality linked employer-employee data and a difference-in-differences event study design, I show that firms that employed affected women substantially increased their number of retained female employees aged 60-62. However, this retention resulted in a significant reduction in the number of new hires and in a modest decline in the number of wage increases among incumbent employees. Further analyses suggest that the magnitude and type of firm adjustment largely depend on the firm-specific human capital required for the respective occupation. |
| Keywords: | firm adjustments, pension reform, internal labor markets, substitution effects |
| JEL: | D22 H55 J26 M51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wuewep:333395 |
| By: | Lewandowski, Piotr; Madoń, Karol; Park, Albert |
| Abstract: | This paper develops a task-adjusted, country-specific measure of workers' exposure to Artificial Intelligence (AI) across 108 countries. Building on Felten et al. (2021), we adapt the Artificial Intelligence Occupational Exposure (AIOE) index to worker-level PIAAC data and extend it globally using comparable surveys and regression-based predictions, covering about 89% of global employment. Accounting for country-specific task structures reveals substantial cross-country heterogeneity: workers in low-income countries exhibit AI exposure levels roughly 0.8 U.S. standard deviations below those in high-income countries, largely due to differences in within-occupation task content. Regression decompositions attribute most cross-country variation to ICT intensity and human capital. High-income countries employ the majority of workers in highly AI-exposed occupations, while lowincome countries concentrate in less exposed ones. Using two PIAAC cycles, we document rising AI exposure in high-income countries, driven by shifts in within-occupation tasks rather than employment structure. |
| Abstract: | In diesem Beitrag wird ein länderspezifischer, aufgabenangepasster Maßstab für die Exposition von Arbeitnehmern gegenüber künstlicher Intelligenz (KI) in 108 Ländern entwickelt. Aufbauend auf Felten et al. (2021) passen wir den Index für die berufliche Exposition gegenüber KI (AIOE) an die PIAAC-Daten auf Arbeitnehmerebene an. Unter Verwendung vergleichbarer Umfragen und regressionsbasierter Prognosen, die etwa 89 % der weltweiten Beschäftigung abdecken, erweitern wir ihn weltweit. Die Berücksichtigung länderspezifischer Aufgabenstrukturen zeigt erhebliche Unterschiede zwischen den Ländern. So weisen Arbeitnehmer in Ländern mit niedrigem Einkommen ein AI-Expositionsniveau auf, das etwa 0, 8 Standardabweichungen unter dem von Ländern mit hohem Einkommen liegt. Dies ist hauptsächlich auf Unterschiede in den Aufgabeninhalten innerhalb eines Berufs zurückzuführen. Regressionszerlegungen führen die meisten Unterschiede zwischen den Ländern auf die IKT-Intensität und das Humankapital zurück. Hochlohnländer beschäftigen die Mehrheit der Arbeitnehmer in Berufen mit hoher KI-Exposition, während sich Niedriglohnländer auf Berufe mit geringerer Exposition konzentrieren. Anhand von zwei PIAAC-Zyklen dokumentieren wir eine steigende KI-Exposition in Hochlohnländern. Diese ist eher auf Veränderungen innerhalb der Aufgabenbereiche als auf Veränderungen in der Beschäftigungsstruktur zurückzuführen. |
| Keywords: | job tasks, occupations, AI, technology, skills |
| JEL: | J21 J23 J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:331883 |
| By: | Goodman, Joshua (Boston University); Winkelmann, Joseph (Harvard University) |
| Abstract: | Declining U.S. college enrollments over the past 15 years have triggered questions about the health of the postsecondary sector. Using college-level data, we make four points. First, such declines are driven not by the 4-year sector but by 2-year community colleges, which have apparently shrunk by over 30% since the Great Recession's peak. Second, one-third of this apparent decline is an artifact of some community colleges being reclassified as offering 4-year degrees. Third, pre-Great Recession data shows a 1 percentage point increase in local unemployment rates increases first-time community college enrollment by 2%, suggesting many students are on the margin between community college and job opportunities. For-profit college enrollments are also countercyclical, while 4-year college enrollments are acyclical. Our estimates suggest strengthening labor markets explain 60% of the post-Great Recession decline in first-time community college enrollment. Fourth, students whose enrollment decisions are most sensitive to labor market conditions are unlikely to have completed degrees. Though declining enrollments are a challenge for community colleges, it is unclear whether they are problematic for students on the margin of enrollment. |
| Keywords: | community college, labor market conditions, unemployment rate |
| JEL: | I23 J24 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18285 |
| By: | Nano Barahona; Cauê Dobbin; Sebastián Otero |
| Abstract: | We study the rapid expansion of Brazil's private online higher-education sector and its effects on market structure and college enrollment. Exploiting regional and field-specific variation in online education penetration, we find that online programs expand access for older students but divert younger students from higher-quality in-person programs. Greater competition lowers tuition prices but also reduces the supply of in-person degrees. Using an equilibrium model of college education, we show that in the absence of online programs, total enrollment would be 14 percent lower, while in-person enrollment would rise by 33 percent. On net, aggregate labor-market value added declines by 1.4 percent. Online education raises value added for older students, who benefit from increased access, but lowers it for younger students, who shift toward lower-return online options. Counterfactual policies that restrict online enrollment to older cohorts could increase value added for younger students without reducing gains for older cohorts. |
| JEL: | I23 I24 I26 J24 L11 L13 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34522 |
| By: | Afridi, Farzana (Indian Statistical Institute); Gupta, Tanu (University of Southampton); Heath, Rachel (University of Washington); Mahajan, Kanika (Ashoka University) |
| Abstract: | We study how the design of vocational skill training programs impacts labor market outcomes, including occupational choice. Women applicants to skill training centres in India are randomized into either a vocational training (VT) program that combines sector-specific hard skills with on-the-job training, or VT plus Project-Based Experiential Learning that incorporates digital skills (VTP), or a control group which is not enrolled into any skill training. Almost a year after the start of the intervention, the nature of employment shifts towards the women's preferred sector, leading to higher self-employed work and earnings therein. These positive effects are observed only for the VTP group, whose usage of social media for business purposes increases due to the intervention. At the same time, satisfaction levels of women assigned to VTP training rise on multiple dimensions. Our findings highlight the role of complementary sector-specific skills in enhancing the impact of vocational training. |
| Keywords: | on-the-job training, digital skills, vocational skilling, self-employment, women, India |
| JEL: | J24 J44 J62 I31 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18272 |
| By: | Maré, David C. (Motu Economic and Public Policy Research Trust); Benison, Thomas (Motu Economic and Public Policy Research Trust) |
| Abstract: | Ethnic wage gaps are a substantial and persistent issue in New Zealand. Understanding the drivers of such gaps is key to understanding the economic, social, and institutional factors that contribute to labour market inequality and to identifying measures to reduce gaps. Using household survey data from 2009 to 2023, this study implements a version of the Oaxaca-Blinder decomposition method to examine the sources of ethnic wage gaps in New Zealand. Our results confirm the pattern of disadvantage previously documented for non-European ethnic groups. Differences in demographic, educational, and job characteristics account for substantial portions of the wage gaps for M?ori, Pacific, and European groups. After accounting for differences in mean characteristics, sizeable wage gaps remain, providing insight into the degree of ethnic labour market disadvantage that is due to unobservable characteristics or broader systemic factors. |
| Keywords: | decomposition, wages, ethnicity, Aotearoa New Zealand |
| JEL: | J15 J30 J71 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18275 |
| By: | Josep Pijoan-Mas (CEMFI and CEPR); Pau Roldan-Blanco (UAB and BSE) |
| Abstract: | We study how the co-existence of fixed-term (FT) and open-ended (OE) contracts shapes firm dynamics, firm selection, worker allocation, aggregate productivity, and output. Using rich Spanish administrative data, we document that the use of fixedterm contracts is very heterogeneous across firms within narrowly defined sectors. Particularly, the relationship between the share of temporary workers and firm size is positive within firm but negative between firms. To explain these facts, we write a model of firm dynamics with technology heterogeneity, search-and-matching frictions, and a two-tier labor market structure. Our model emphasizes a key trade-off between contracts, namely, that while FT contracts give flexibility to firms, they also create more worker turnover, which is costly through the need to hire new workers and through the loss of firm-specific human capital. We find that limiting the use of FT contracts decreases the share of temporary employment and increases aggregate productivity —as better firm selection offsets increased misallocation of workers— but it also increases unemployment, output, and welfare. |
| Keywords: | Dual Labor Markets, Temporary Contracts, Firm Dynamics, Unemployment. |
| JEL: | D83 E24 J41 L11 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:cmf:wpaper:wp2025_2530 |
| By: | Bohacek, Radim (CERGE-EI); Myck, Michal (Centre for Economic Analysis, CenEA) |
| Abstract: | We examine the consequences of political persecution under the communist regime on labor market outcomes using life history data from the Czech sample of the Survey of Health, Ageing and Retirement in Europe. The risk of persecution is instrumented using unique administrative data on the intensity of political oppression. We find strong evidence of career degradation as a consequence of persecution-driven job losses. Our estimates suggest that earnings in jobs following such a loss carried a penalty of over 60 percent that accumulated over time to substantially lower retirement benefits. We document the gravity of economic consequences for ordinary citizens persecuted by the authoritarian regime as well as effective compensating schemes implemented by democratic governments after 1989. |
| Keywords: | communist regimes, political persecution, discrimination, wage differentials, life histories |
| JEL: | J70 J31 N34 C21 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18282 |
| By: | Robert Ainsworth; Rajeev H. Dehejia; Andrei Munteanu; Cristian Pop-Eleches; Miguel Urquiola |
| Abstract: | We examine the impacts of assignment to STEM vs. humanities-focused curricula in Romania’s high school system. We apply a regression discontinuity design to administrative and survey data to estimate effects on educational pathways, desired careers, and non-cognitive outcomes. An overarching theme of our findings is the malleability of students to what they study. Assignment to STEM increases STEM college enrollment and technology or engineering career intentions by 25 pp. Exploring mechanisms, we find that STEM assignment changes students’ self-perceived academic abilities and their preferences over academic subjects and job tasks. STEM assignment is risky for low-achieving students, reducing their chances of passing a high school exit exam and enrolling in college. A final finding is that STEM makes boys more conservative, while shifting some of girls' views to the left. Our results identify a strategy for promoting STEM higher education and careers, but also highlight potential tradeoffs. |
| JEL: | I2 J24 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34502 |
| By: | Akan, Mert (Stanford University); Barrero, José María (Instituto Tecnológico Autónomo de México Business School); Bloom, Nicholas (Stanford University); Bowen, Tom; Buckman, Shelby Rae (Stanford University); Davis, Steven J. (Hoover Institution); Kim, Hyoseul (Stanford University) |
| Abstract: | We study where Americans live in relation to their employer’s worksite using matched employer-employee data, and how that relationship changes with the rise of work from home (WFH). Mean distance from home to employer’s worksite rose more than 70% between 2019 and 2024 in our dataset. Twelve percent of employees hired after March 2020 reside fifty or more miles from their employer by 2024, triple the pre-pandemic share. Distance to employer rose most for those in their 30s and 40s, among highly paid employees, and in Finance, Information, and Professional Services. Especially for the affluent, the pandemic-instigated rise in WFH initiated a multi-year pattern of net migration to areas with cheaper housing and states with lower tax rates. Finally, we show that distant employees exhibit more sensitivity to firm-level adjustments on hiring and separation margins. These developments have implications for residential location, state-level tax revenues, labor markets, and household welfare. |
| Keywords: | worker migration, housing costs and relocation, taxes and relocation, hires and separations, distance to employer, remote jobs, work from home, geographic extent of labor markets |
| JEL: | J2 J3 R1 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18278 |
| By: | Sascha O. Becker; Hartmut Egger; Michael Koch; Marc-Andreas Muendler |
| Abstract: | This paper links globalization, worker efficiency, and wage inequality within plants to internal labor market organization. Using German plant–worker data and information on the task content of occupations, we document that larger plants (i) use more occupations, (ii) assign fewer tasks per occupation, and (iii) exhibit greater wage dispersion. We develop a model where plants endogenously bundle tasks into occupations, improving worker-task matching at the cost of higher fixed span-of-control costs. Embedding this into a Melitz framework, we show that trade increases worker efficiency and wage inequality in exporting plants, whereas non-exporting plants experience the opposite effects. Structural estimation and simulations confirm the model’s predictions and point to non-monotonic economy-wide effects. |
| Keywords: | tasks, specialization, international trade, firm-internal labor allocation |
| JEL: | F12 F16 J3 L23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12284 |
| By: | Eduardo M. Azevedo; Florian Scheuer; Kent Smetters; Min Yang |
| Abstract: | Recent proposals to tax unrealized capital gains or wealth have sparked a debate about their impact on entrepreneurship. We show that accrual-based taxation creates two opposing effects: successful founders face greater dilution from advance tax payments, whereas unsuccessful founders receive tax credits that effectively provide insurance. Using comprehensive new data on U.S. venture capital deals, we find that founder returns remain extremely skewed, with 84% receiving zero exit value while the top 2% capture 80% of total value. Moving from current realization-based to accrual-based taxation would reduce founder ownership at exit by 25% on average but would also increase the fraction receiving positive payoffs from 16% to 47% when tax credits are refunded. Embedding these distributions in a dynamic career choice model, we find that founders with no or moderate risk aversion prefer the current realization-based tax system, while more risk-averse founders prefer accrual-based taxation. We estimate that a 2% annual wealth tax has a similar impact on dilution as taxing unrealized capital gains but produces no risk-sharing benefits due to the absence of tax credits in case of down rounds. |
| JEL: | D86 H2 H3 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34512 |
| By: | Inga Laß (Melbourne Institute of Applied Economic and Social Research); Mark Wooden (Melbourne Institute of Applied Economic and Social Research) |
| Abstract: | The COVID-19 pandemic triggered a significant and long-lasting increase in the proportion of employees working from home (WFH). However, relatively little is known about the specific groups of workers that are most likely to work from home post-pandemic. This paper investigates the characteristics of employees and their employers who are WFH in post-pandemic Australia. We run logistic regression analyses based on the 2023 round of the Household, Income and Labour Dynamics in Australia (HILDA) Survey, which contains novel information on the number of full workdays worked from home. Sixteen hypotheses are proposed and tested. The results confirm strong and powerful associations between WFH full days and both occupation and industry. However, contrary to expectations, WFH is not positively associated with caring responsibilities or the presence of long-term health conditions or disabilities, and nor is WFH more common among the oldest workers. This latter set of findings is striking given the National Employment Standards identify these employee characteristics as deserving priority when employers consider requests to work from home. Overall, while worker preferences are relevant, the results suggest that it is the nature of jobs that is the main factor determining who has the option to work from home. |
| Keywords: | Working from home, flexible work, hybrid work, remote work, HILDA Survey |
| JEL: | J21 M54 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:iae:iaewps:wp2025n18 |
| By: | Hammarstedt, Mats (Linnaeus University, and) |
| Abstract: | We present results from research on different dimensions of immigrant self-employment in Sweden. There are variations in self-employment rates between different groups of immigrants and the native population. Self-employment rates have increased markedly among certain groups of immigrants since the 1990s. Immigrants from certain countries in the Middle East are over-represented in self-employment, while self-employment rates among immigrants from countries in Africa are relatively low. Immigrants from countries outside Europe are often self-employed in branches with low entry barriers. Exit rates from self-employment are generally higher, and earnings are lower among self-employed non-European immigrants than among self-employed natives and European immigrants. Research regarding explanations for why immigrants opt for self-employment is presented. Results indicate that immigrants are pushed into self-employment due to low earnings in wage-employment. As regards the effects of ethnic enclaves, networks, and traditions from their home countries, the results are inconclusive. Family traditions and parental role models increase self-employment propensities more for immigrants than for natives. Non-European immigrants report that they encounter other difficulties and obstacles in their business activities than natives and European immigrants. They consider lack of access to financial capital and discrimination from banks, customers, and suppliers as obstacles for successful self-employment. Finally, results show that immigrants who are successful in their business activities may play an important role for labor market integration since they create employment opportunities also for other immigrants. |
| Keywords: | Self-employment; Immigrants; Sweden |
| JEL: | J15 J24 L26 |
| Date: | 2025–11–24 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1544 |
| By: | Roberto Basile (Department of Legal and Economic Studies, Sapienza University of Rome); Francesca Licari (Italian National Institute of Statistics (ISTAT)); Francesca Centofanti (University of Rome "Tor Vergata"); Cinzia Castagnaro (Italian National Institute of Statistics (ISTAT)); Elena Ambrosetti (Department of Methods and Models for Economics, Territory and Finance, Sapienza University of Rome) |
| Abstract: | This paper provides new evidence on the brain drain in Italy. Building on the framework proposed by Becker, Ichino, and Peri (2004), we measure brain drain through a comprehensive set of indicators. Unlike previous studies, we account for return migration — not just emigration — of Italians and assess brain drain as the net loss of human capital. We also explore the interplay between international and internal migration, with particular attention to the outflow of high-skilled workers from Southern to Northern Italy. The findings show that, over the period 2013–2023, the migration of highly qualified youth from the South to the North more than offset the international brain drain affecting the North, while significantly deepening the human capital depletion in the South. Finally, we exploit new data on the educational attainment of foreign immigrants, assessing their contribution to the dynamics of human capital at both national and regional level. |
| Keywords: | Brain drain; Italian migration; Mezzogiorno; internal migration; human capital |
| JEL: | J24 F22 R23 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:gfe:pfrp00:00076 |
| By: | Choi, Kyuhan; Shi, Ying (Syracuse University); Zhu, Maria (Syracuse University) |
| Abstract: | This paper examines how exposure to disruptive students affects teacher retention using linked teacher-student administrative records from North Carolina. To address non-random classroom assignment, we instrument for classroom exposure using the school-by-grade share of disruptive students based on prior-year disciplinary infractions. A one standard deviation increase in the share of disruptive students raises the probability of a teacher leaving the school in the following year by 1.6 percentage points. We do not find differential effects by teacher characteristics. However, working in a school environment with supportive leadership and greater teacher input into decision-making mitigates the impact of student disruptions. |
| Keywords: | student behavior, teacher turnover |
| JEL: | I29 J45 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18271 |
| By: | Barbora Livorova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic & Czech National Bank); Adam Gersl (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | This paper contributes to studying the impacts of monetary policy on labour income inequality in the euro area using subnational regional data on compensation per employee. The dataset covers 932 NUTS3 regions from 16 countries over the period 2000 - 2022 at a yearly frequency. Using sub-sample analysis combined with local projections, the results show that monetary policy rate changes have heterogeneous effects on the growth of real compensation per employee (deflated by the GDP deflator) at both the bottom and upper ends of the regional distribution within individual countries. From the whole euro area perspective, monetary policy tightening has a heterogeneous effect on labour incomes between regions - in times of monetary policy easing, shortening the gap between average low- and high-income regions. |
| Keywords: | Monetary Policy, Regional Inequality, Compensation of employees, Local Projections |
| JEL: | E52 J31 R10 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_27 |