nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2018‒02‒05
six papers chosen by
Maximo Rossi
Universidad de la República

  1. Parents, Siblings and Schoolmates: The Effects of Family-School Interactions on Educational Achievement and Long-Term Labor Market Outcomes By Bertoni, Marco; Brunello, Giorgio; Cappellari, Lorenzo
  2. When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving By Rey-Biel, Pedro; Sheremeta, Roman; Uler, Neslihan
  3. Skills, Signals, and Employability: An Experimental Investigation By Piopiunik, Marc; Schwerdt, Guido; Simon, Lisa; Woessmann, Ludger
  4. The Effectiveness of Hiring Credits By Cahuc, Pierre; Carcillo, St�phane; Le Barbanchon, Thomas
  5. Positional goods and legal orderings By Ugo Pagano; Massimiliano Vatiero
  6. Does upward mobility harm trust? By Rémi Suchon; Marie Claire Villeval

  1. By: Bertoni, Marco (University of Padova); Brunello, Giorgio (University of Padova); Cappellari, Lorenzo (Università Cattolica del Sacro Cuore)
    Abstract: We use Danish register data to investigate whether the effects of schoolmates' gender and average parental education on individual educational achievement, employment and earnings vary with individual family characteristics such as the gender of siblings and own parental education. We find that boys with sisters have worse employment prospects than boys with no sisters when exposed to a higher share of girls at school. The opposite is true for girls who have sisters. We also show that the benefits from exposure to "privileged" peers accrue mainly to "disadvantaged" students. These benefits decline when the dispersion of parental education increases. Overall, the size of the estimated effects is small.
    Keywords: education peer effects, gender, parental background, human capital production, long term outcomes
    JEL: I21 J16 J24
    Date: 2017–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp11200&r=ltv
  2. By: Rey-Biel, Pedro; Sheremeta, Roman; Uler, Neslihan
    Abstract: We study how giving depends on income and luck, and how culture and information about the determinants of others’ income affect this relationship. Our data come from an experiment conducted in two countries, the US and Spain – each of which have different beliefs about how income inequality arises. We find that when individuals are informed about the determinants of income, there are no cross-cultural differences in giving. When uninformed, however, Americans give less than the Spanish. This difference persists even after controlling for beliefs, personal characteristics, and values.
    Keywords: individual giving; information; culture; beliefs; laboratory experiment
    JEL: C91 D64 D83
    Date: 2018–01–15
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:83940&r=ltv
  3. By: Piopiunik, Marc (ifo Institute at the University of Munich); Schwerdt, Guido (University of Konstanz); Simon, Lisa (ifo Institute at the University of Munich); Woessmann, Ludger (ifo and LMU Munich)
    Abstract: As skills of labor-market entrants are usually not directly observed by employers, individuals acquire skill signals. To study which signals are valued by employers, we simultaneously and independently randomize a broad range of skill signals on pairs of resumes of fictitious applicants among which we ask a large representative sample of German human-resource managers to choose. We find that signals in all three studied domains - cognitive skills, social skills, and maturity - have a significant effect on being invited for a job interview. Consistent with the relevance, expectedness, and credibility of different signals, the specific signal that is effective in each domain differs between apprenticeship applicants and college graduates. While GPAs and social skills are significant for both genders, males are particularly rewarded for maturity and females for IT and language skills. Older HR managers value school grades less and other signals more, whereas HR managers in larger firms value college grades more.
    Keywords: signals; cognitive skills; social skills; resume; hiring; labor market;
    JEL: J24 J21
    Date: 2018–01–15
    URL: http://d.repec.org/n?u=RePEc:rco:dpaper:63&r=ltv
  4. By: Cahuc, Pierre; Carcillo, St�phane; Le Barbanchon, Thomas
    Abstract: This paper analyzes the effectiveness of hiring credits. Using comprehensive administrative data, we show that the French hiring credit, implemented during the Great Recession, had significant positive employment effects and no effects on wages. Relying on the quasi-experimental variation in labor cost triggered by the hiring credit, we estimate a structural search and matching model. Simulations of counterfactual policies show that the effectiveness of the hiring credit relied to a large extent on three features: it was non-anticipated, temporary and targeted at jobs with rigid wages. We estimate that the cost per job created by permanent hiring credits, either countercyclical or time-invariant, in an environment with flexible wages would have been much higher.
    Keywords: Hiring credit; labor demand; search and matching model
    JEL: C31 C93 J6
    Date: 2017–12
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:12537&r=ltv
  5. By: Ugo Pagano; Massimiliano Vatiero
    Abstract: People consume because others consume, maintained Veblen in 1899. More recently, theoretical, empirical and experimental articles have argued that people constantly compare themselves to their environments and care greatly about their relative positions. Given that competition for positions may produce social costs, we adopt a Law and Economics approach (i) to suggest legal remedies for positional competition, and (ii) to argue that, because legal relations are characterized in turn by positional characteristics, such legal remedies do not represent ‘free lunches’
    JEL: B41 D01 D62 K00
    Date: 2017–01
    URL: http://d.repec.org/n?u=RePEc:usi:wpaper:773&r=ltv
  6. By: Rémi Suchon (Univ Lyon, CNRS, GATE L-SE UMR 5824, F-69131 Ecully, France); Marie Claire Villeval (Univ Lyon, CNRS, GATE L-SE UMR 5824, F-69131 Ecully, France)
    Abstract: While considered as appealing for positive and normative reasons, anecdotal evidence suggests that upward social mobility may harm interpersonal interactions. We report on an experiment testing the effect of upward social mobility on interpersonal trust. Individuals are characterized both by a natural group identity and by a status awarded by means of relative performance in a task in which natural identities strongly predict performance. Upward mobility is characterized by the access to the high status of individuals belonging to the natural group associated with a lower expected performance. We find that socially mobile individuals trust less than those who are not socially mobile, especially when the trustee belongs to the same natural group. In contrast, upward mobility does not affect trustworthiness. We find no evidence that interacting with an upwardly mobile individual impacts trust or trustworthiness.
    Keywords: Trust, trustworthiness, social mobility, social identity, experiment
    JEL: C92 J62
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:gat:wpaper:1801&r=ltv

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