nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2017‒05‒28
six papers chosen by
Maximo Rossi
Universidad de la República

  1. Born to Lead? The Effect of Birth Order on Non-Cognitive Abilities By Sandra E. Black; Erik Grönqvist; Björn Öckert
  2. Gender Differences in the Benefits of an Influential Early Childhood Program By García, Jorge Luis; Heckman, James J.; Ziff, Anna
  3. Correlations of Brothers' Earnings and Intergenerational Transmission By Bingley, Paul; Cappellari, Lorenzo
  4. Female Suicide and the Concept of the Midlife Crisis By Oswald, Andrew J.; Tohamy, Ahmed
  5. The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships By Albanese, Andrea; Cappellari, Lorenzo; Leonardi, Marco
  6. The Fall of the Labor Share and the Rise of Superstar Firms By Autor, David; Dorn, David; Katz, Lawrence; Patterson, Christina; Van Reenen, John

  1. By: Sandra E. Black; Erik Grönqvist; Björn Öckert
    Abstract: We study the effect of birth order on personality traits among men using population data on enlistment records and occupations for Sweden. We find that earlier born men are more emotionally stable, persistent, socially outgoing, willing to assume responsibility, and able to take initiative than later-borns. In addition, we find that birth order affects occupational sorting; first-born children are more likely to be managers, while later-born children are more likely to be self-employed. We also find that earlier born children are more likely to be in occupations that require leadership ability, social ability and the Big Five personality traits. Finally, we find a significant role of sex composition within the family. Later-born boys suffer an additional penalty the larger the share of boys among the older siblings. When we investigate possible mechanisms, we find that the negative effects of birth order are driven by post-natal environmental factors. We also find evidence of lower parental human capital investments in later-born children.
    JEL: J13 J24
    Date: 2017–05
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23393&r=ltv
  2. By: García, Jorge Luis (University of Chicago); Heckman, James J. (University of Chicago); Ziff, Anna (University of Chicago)
    Abstract: This paper estimates gender differences in life-cycle impacts across multiple domains of an influential enriched early childhood program targeted toward disadvantaged children that was evaluated by the method of random assignment. We assess the impacts of the program on promoting or alleviating population differences in outcomes by gender. For many outcomes, boys benefit relatively more from high-quality center childcare programs compared to low-quality programs. For them, home care, even in disadvantaged environments, is more beneficial than lower-quality center childcare for many outcomes. This phenomenon is not found for girls. We investigate the sources of the gender differentials in impacts.
    Keywords: gender differences, childcare, early childhood education, health, randomized trials, substitution bias
    JEL: J13 I28 C93
    Date: 2017–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp10758&r=ltv
  3. By: Bingley, Paul (Danish National Centre for Social Research (SFI)); Cappellari, Lorenzo (Università Cattolica del Sacro Cuore)
    Abstract: Correlations between parent and child earnings reflect intergenerational mobility and, more broadly, correlations between siblings' earnings reflect shared community and family background. These earnings relationships capture important aspects of relations in socioeconomic status more generally. We estimate intergenerational transmission and sibling correlations of life-cycle earnings jointly within a unified framework that nests previous models. Using data on the Danish population of father/first-son/second-son triads we find that intergenerational effects account for on average 72 percent of sibling correlations. This share is higher than all previous studies because we allow for heterogeneous intergenerational transmission between families. Sibling correlations exhibit a U-shape over the working life, consistent with differences in human capital investments between families.
    Keywords: sibling correlations, intergenerational transmission, life-cycle earnings
    JEL: D31 J62
    Date: 2017–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp10761&r=ltv
  4. By: Oswald, Andrew J. (University of Warwick); Tohamy, Ahmed (University of Warwick)
    Abstract: The idea that humans – especially females – are prone to some form of 'midlife crisis' has typically been viewed with extreme skepticism by social scientists. We point out the potential equivalence between an age U-shape in a new well-being literature and a matching hill-shape in especially female suicide risk (evident in 28 countries and visible in the United States even 30 years ago). This concordance between two currently separate kinds of evidence, including a result on non-human primates, is apparently not known to many researchers or public commentators. It may be necessary to reconsider traditional thinking on the midlife crisis.
    Keywords: happiness, aging, suicide, well-being, GHQ, mental-health, depression, life-course
    JEL: I12 I31
    Date: 2017–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp10759&r=ltv
  5. By: Albanese, Andrea (Ghent University); Cappellari, Lorenzo (Università Cattolica del Sacro Cuore); Leonardi, Marco (University of Milan)
    Abstract: This paper estimates the causal effects of the 2003 reform of the Italian apprenticeship contract which aimed at introducing the "dual system" in Italy by allowing on-the-job training. The reform also increased the age eligibility of the apprenticeship contract and introduced a minimum floor to apprentices' wages. Using administrative data and balancing techniques we find that five years after hiring, the new contract improves the chances of moving to a permanent job in the same firm, yet this happens mostly in large firms. There are also sizeable long-run wage effects of the reform, well beyond the legal duration of apprenticeships, compatible with increased human capital accumulation probably due to the training provisions of the reform.
    Keywords: apprenticeship, permanent work, youth employment, covariate balancing, propensity score
    JEL: J24 J41 C21
    Date: 2017–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp10766&r=ltv
  6. By: Autor, David (MIT); Dorn, David (University of Zurich); Katz, Lawrence (Harvard University); Patterson, Christina (Massachusetts Institute of Technology); Van Reenen, John (MIT Sloan School of Management)
    Abstract: The fall of labor's share of GDP in the United States and many other countries in recent decades is well documented but its causes remain uncertain. Existing empirical assessments of trends in labor's share typically have relied on industry or macro data, obscuring heterogeneity among firms. In this paper, we analyze micro panel data from the U.S. Economic Census since 1982 and international sources and document empirical patterns to assess a new interpretation of the fall in the labor share based on the rise of "superstar firms." If globalization or technological changes advantage the most productive firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar firms with high profits and a low share of labor in firm value-added and sales. As the importance of superstar firms increases, the aggregate labor share will tend to fall. Our hypothesis offers several testable predictions: industry sales will increasingly concentrate in a small number of firms; industries where concentration rises most will have the largest declines in the labor share; the fall in the labor share will be driven largely by between-firm reallocation rather than (primarily) a fall in the unweighted mean labor share within firms; the between-firm reallocation component of the fall in the labor share will be greatest in the sectors with the largest increases in market concentration; and finally, such patterns will be observed not only in U.S. firms, but also internationally. We find support for all of these predictions.
    Keywords: labor share, sales concentration, firms
    JEL: E24 J31 L11
    Date: 2017–05
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp10756&r=ltv

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