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on Labour Economics |
| By: | Kunze, Astrid (Norwegian School of Economics and Business Administration); Troske, Kenneth (University of Kentucky) |
| Abstract: | We investigate whether women search longer for a job than men and whether these differences change over the life cycle. Our empirical analysis exploits German register data on highly attached displaced workers. We apply duration models to analyze gender differences in job search taking into account observed and unobserved worker heterogeneity and censoring. Simple survival functions show that displaced women take longer to find a new job than comparable men. Disaggregation by age groups reveals that these differences are driven by differential behavior of prime age women. There is no significant difference in job search duration among the very young and older workers. These differential outcomes remain even after we control for differences in human capital, and when time dependence and unobserved heterogeneity are incorporated into the model. |
| Keywords: | gender differences, job search, displaced workers, wage differences, discrimination |
| JEL: | J31 J63 J64 J71 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4656&r=lab |
| By: | Macunovich, Diane (University of Redlands) |
| Abstract: | Older women's patterns of labor supply over the past forty years have differed markedly from those of younger women. Their labor force participation declined sharply during a period of rapid increase for younger women, and then increased significantly while younger women's plateaued and even declined. But there has been an apparent correspondence between the pattern of retirement among women aged 55-69, and the proportion of workers aged 25-34 working part-year and/or part-time. The latter was an effect of overcrowding among the baby boomers as they moved through the labor market. The former is hypothesized here to be a function of the increasing difficulty older women experienced in obtaining "bridge jobs" – part-year and/or part-time – between career and retirement. It has been demonstrated in earlier studies that older women – especially those in lower-wage jobs – often seek such bridge jobs before retirement. And in many cases these bridge jobs are not in the same industry or even occupation as the career job, leading one to suspect that in many cases there might be little transfer of skill or human capital. If this is the case, then the older workers would at least to some extent be in direct competition with younger workers for these jobs. Given difficulty in finding bridge jobs, a higher proportion of older workers might choose to enter retirement directly from career jobs, skipping the bridge jobs. A relative cohort size measure – the number of 25-34 year old women working part-year and/or part-time, relative to the number of older women, at the state level – has been shown here to be highly significant – both statistically and substantively – in explaining changes in older women's annual hours worked, labor force participation, and propensity to retire. In general terms, relative cohort size can be said to have generated between 15-30% of the observed changes in these variables, with the strongest effects being on the propensity to claim Social Security benefits. Somewhat stronger effects were found for older men, in a companion to this study. |
| Keywords: | retirement, women's labor supply, labor force participation, relative cohort size, relative wage, part-time employment, bridge jobs, baby boom |
| JEL: | J14 J21 J22 J26 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4653&r=lab |
| By: | Baker, Michael; Drolet, Marie |
| Abstract: | We construct a new time series on the Canadian female/male pay ratio. The new series is based on wage data rather than the earnings data that has been used in the past. Wages more closely correspond to the price of labour, which is the focus of most theories of labour market discrimination and public policies in this area. Earnings based estimates combine gender differences in wages with gender differences in decisions of how much to work (i.e., hours). Our results reveal significant differences between the wage and earnings based series. Most importantly the wage series reveals that women have continued to make progress in the last fifteen years. In 2006 the wage based ratio is 0.85 while the earnings based ratio is only 0.72. We also find that as the gender wage ratio has risen, the remaining gap in wages is increasingly unexplained in the sense that it cannot be accounted for by gender differences in characteristics that the labour market values. |
| Keywords: | Gender Pay Gap, Wages, Earnings |
| JEL: | J31 |
| Date: | 2009–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:clssrn:clsrn_admin-2009-67&r=lab |
| By: | Chaudhuri, Sanjukta |
| Abstract: | In examining child work and education in rural India, I find that Parental education and hours of non household child work demonstrate a U shaped relationship. I contend this is due to weak labor markets for skilled workers in rural India that creates a “high education trap.” This results in poverty and perpetuation of child work in households with highly educated parents. School attendance is feasible even for child workers, but is conditional on continuity of enrollment. At 30 hours of non household work per week, school enrollment in the previous year ensures that the probability of attendance in the current year is 93 percent. |
| Keywords: | Child work; Child labor; Child education; Rural India; Poverty; Gender discrimination. |
| JEL: | D13 O53 J21 I32 |
| Date: | 2009–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19687&r=lab |
| By: | Macunovich, Diane (University of Redlands) |
| Abstract: | The United States has experienced over the past forty years an apparent correspondence between the pattern of retirement among men aged 55-69, and the proportion of workers aged 25-34 working part-year and/or part-time. The latter was an effect of overcrowding among the baby boomers as they moved through the labor market. The former is hypothesized here to be a function of the increasing difficulty older men experienced in obtaining "bridge jobs" – part-year and/or part-time – between career and retirement. It has been demonstrated in a series of studies that a large proportion (as many as two-thirds) of older men – especially those in lower-wage jobs – seek such bridge jobs before retirement. And in many cases these bridge jobs are not in the same industry or even occupation as the career job, leading one to suspect that in many cases there might be little transfer of skill or human capital. If this is the case, then the older workers would at least to some extent be in direct competition with younger workers for these jobs. Given difficulty in finding bridge jobs, a higher proportion of older workers might choose to enter retirement directly from career jobs, skipping the bridge jobs. A relative cohort size measure – the number of 25-34 year olds working part-year and/or part-time, relative to the number of older men, at the state level – has been shown here to be highly significant – both statistically and substantively – in explaining changes in older men's annual hours worked, labor force participation, and propensity to retire, and propensity to claim Social Security benefits. In general terms, relative cohort size can be said to have generated between 25-40% of the observed changes in these variables, with the strongest effects being on the propensity to claim Social Security benefits. Somewhat weaker effects were found for older women, in a companion to this study. |
| Keywords: | retirement, men's labor supply, labor force participation, relative cohort size, relative wage, part-time employment, bridge jobs, baby boom |
| JEL: | J14 J21 J22 J26 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4652&r=lab |
| By: | Võrk, Andres (Praxis Center for policy Studies) |
| Abstract: | In this paper we give an overview of labour supply incentives present in the Estonian income support system and how changes during the last ten years in the Estonian benefit system have influenced the incentives. As Estonia belongs to the group of EU countries where both taxes and social expenditures are relatively low, they generate high motivation to actively participate in the labour market, in general. Also the gradual introduction of contribution based and earnings related benefits, such as unemployment insurance benefits, parental benefits, a fully funded pension scheme together with earnings-related public pension scheme have all significantly increased rewards from employment and are often associated with increased labour supply as well as a reduction in undeclared work. The increase of the statutory retirement ages for men and women have increased average employment rates of the elderly, but also retirement through alternative schemes, most notably disability pensions and early retirement pensions. In a few cases, the Estonian benefit schemes generate disincentives to seek for a job or increase labour effort, affecting people both with low and high earnings. In case of unemployment benefits and early retirement benefits, even marginal income from labour leads to loss of all benefits, thus discouraging part time work. Also there are very high effective marginal tax rates when increasing work effort when receiving subsistence benefits and parental benefits, in certain cases. These disincentives become even more significant in this economic crisis when people are faced with long-term unemployment and it is vital that they are encouraged to return to the labour market. |
| Keywords: | Labour supply incentives; social security; Estonia |
| JEL: | H53 H55 J08 J21 J26 |
| Date: | 2009–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_031&r=lab |
| By: | Pedro S. Amaral |
| Abstract: | Changes in the fraction of workers experiencing job separations can account for> most of the increase in earnings dispersion that occurred both between, as well as> within educational groups in the United States from the mid-1970s to the mid-> 1980s. This is not true of changes in average earnings losses following job separations.> A search model with exogenous human capital accumulation calibrated> to match some selected moments of the U.S. labor market is used to measure the> effects of changes in the fraction of workers experiencing job separations (extensive> margin) versus changes in average earnings losses following job separations> (intensive margin). While both margins do well in accounting for the increase in> the college premium, only the changes in the extensive margin do well in accounting> for the increases in the variance of both the permanent and transitory> components of earnings. |
| Keywords: | Wages ; Income distribution |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwp:0910&r=lab |
| By: | Livanos, Ilias (University of Warwick); Pouliakas, Konstantinos (University of Aberdeen) |
| Abstract: | This study investigates the extent to which differences in the subject of degree studied by male and female university graduates contributes to the gender pay gap, and the reasons underlying their distinct educational choices. The case of Greece is examined due to the fact that it is an EU country with historically large gender discrepancies in earnings and occupational segregation. Using micro-data from the Greek Labour Force Survey (LFS), the returns to academic disciplines are firstly estimated by gender. It is found that the subjects in which women are relatively over-represented (e.g. Education, Humanities) are also those with the lowest wage returns. Oaxaca-Blinder decompositions subsequently imply that gender differences in the type of degree studied can explain an additional 8.4% of the male-female pay gap. Risk-augmented earnings functions of the Hartog-type also indicate that women seek for less risky educations that consequently command lower wage premiums in the job market. |
| Keywords: | gender wage gap, subject of degree, returns, risk, Greece |
| JEL: | J16 J24 J31 J71 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4636&r=lab |
| By: | Gautier, Pieter A. (VU University Amsterdam); van der Klaauw, Bas (VU University Amsterdam) |
| Abstract: | In this paper we provide a description of the labor market in the Netherlands. Compared to other OECD countries labor force participation is high and the unemployment rate is low (also for young workers). Among the unemployed there are, however, relatively many long-term unemployed workers. Labor force participation of older workers is increasing but still low and Dutch workers have relatively low working hours. Disability is high, particularly among young individuals. We discuss the relevant labor market institutions in the Netherlands and use recent reforms to assess the importance of the different reforms. Where possible we provide an international comparison. We find that inflow into benefits programs responds to (financial) incentives. The outflow is much more difficult to affect, in particular we could not find any evidence of substantial positive effects of active labor market programs (which are frequently offered in the Netherlands). |
| Keywords: | Institution; incentives; labor market reforms; participation; unemployment; disability |
| JEL: | H21 H53 H55 J08 J21 J22 J26 J68 |
| Date: | 2009–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_028&r=lab |
| By: | Brewer, Mike (Institute for Fiscal Studies) |
| Abstract: | This paper reviews how income-support systems affect labour force participation in the UK. The UK’s approach to social insurance is “basic security”, with modest, typically flat-rate, benefits; insurance-based benefits are relatively unimportant. Compared with the EU, the UK has high employment rates, but a high proportion of non-workers say that they are not working through disability. In general, the low generosity of out-of-work benefits means that positive incentives to work exist for almost all benefit recipients, but weak work incentives exist for those receive Housing Benefit, and for primary earners in couples who have low earnings. Recent reforms to strengthen work incentives have altered the in-work tax credits, rather than the benefit system, and recent reforms to the out-of-work benefits have involved toughening and extending job-search requirements. The two main political parties seem to agree that future reforms will involve more conditionality, a greater use of the private sector, and a unification of the different labour market programmes. |
| Keywords: | Institutions; incentives; reforms; labour supply; disability |
| JEL: | H53 H55 I38 J08 J21 J22 J68 |
| Date: | 2009–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_027&r=lab |
| By: | Osikominu, Aderonke (University of Freiburg) |
| Abstract: | This study evaluates and compares the effectiveness of two alternative training schemes for the unemployed: short, job-search oriented training and long, human capital oriented training. We investigate the impact dynamics of these programs considering both unemployment and employment duration. Our analysis uses a rich administrative longitudinal data set for Germany where both programs were implemented at the same time. Our estimation strategy flexibly accounts for dynamic selection on observables and unobservables as well as heterogeneous treatment effects. The results indicate that short-term training schemes can be an effective tool to reduce unemployment in the long run, in particular if participation occurs early during unemployment. Long-term training schemes increase the average duration of employment spells more strongly than short-term training. However, they increase the expected unemployment duration if they are started early during unemployment. This negative short-run impact of long-term training is an important driver of its overall effectiveness. |
| Keywords: | training, program evaluation, duration analysis, dynamic treatment effects, multiple treatments, active labor market policy |
| JEL: | J64 C41 J68 I28 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4638&r=lab |
| By: | Aslund, Olof (IFAU); Hensvik, Lena (IFAU); Nordström Skans, Oskar (IFAU) |
| Abstract: | We show that immigrant managers are substantially more likely to hire immigrants than are native managers. The finding holds when comparing establishments in the same 5-digit industry and location, when comparing different establishments within the same firm, when analyzing establishments that change management over time, and when accounting for within-establishment trends in recruitment patterns. The effects are largest for small and owner-managed establishments in the for-profit sector. Separations are more frequent when workers and managers have dissimilar origin, but only before workers become protected by EPL. We also find that native managers are unbiased in their recruitments of former co-workers, suggesting that information deficiencies are important. We find no effects on entry wages. Our findings suggest that a low frequency of immigrant managers may contribute to the observed disadvantages of immigrant workers. |
| Keywords: | minority workers, labor mobility, workplace segregation |
| JEL: | J15 J21 J62 M51 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4640&r=lab |
| By: | Constant, Amelie F. (DIW DC, George Washington University); Kahanec, Martin (IZA); Rinne, Ulf (IZA); Zimmermann, Klaus F. (IZA, DIW Berlin and Bonn University) |
| Abstract: | This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light on the native-migrant differences in economic outcomes, we investigate the labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Our results indicate that separated migrants have a relatively slow reintegration into the labor market. We explain this finding by arguing that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants. |
| Keywords: | migration, ethnicity, ethnic identity, ethnosizer, unemployment, job search, reservation Wages |
| JEL: | F22 J15 J61 J64 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4660&r=lab |
| By: | Eleftheriou, Konstantinos; Athanasiou, George; Petrakis, Panagiotis |
| Abstract: | The paper develops a model for the screening mechanism for higher education, within an adverse selection framework. Specifically it examines the effect of wage earned by high school graduates on higher education participation. The model pinpoints a positive relation between the “high school” wage and the number of candidates entered in higher education with positive influences on the quality of selection mechanism. An empirical examination is conducted, using U.S. data, in order to investigate the validity of our analytical results. |
| Keywords: | Admissions; High school wage; Higher education; Quality |
| JEL: | J24 I28 J39 |
| Date: | 2009–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19615&r=lab |
| By: | Shintaro Yamaguchi |
| Abstract: | This paper examines how primitive skills associated with occupations are formed and rewarded in the labor market over the careers of men. The objective task complexity measurement from the Dictionary of Occupational Titles enables a more direct look into the primitive skills of workers. I show that the optimal choice of task complexity is a linear function of unobserved skills, worker characteristics, and preference shocks, which implies that the observed task complexity is a noisy signal of underlying skills. Using career histories from the NLSY79, the growth of cognitive and motor skills as well as structural parameters are estimated by the Kalman filter. The results indicate that both cognitive and motor skills account for a considerable amount of cross-sectional wage variation. I also find that cognitive skills grow over careers and are the main source of wage growth; this pattern is particularly pronounced for the highly educated. In contrast, motor skills grow and contribute to wage growth substantially only for high school dropouts. |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd09-088&r=lab |
| By: | Meta Brown; Christopher J. Flinn; Andrew Schotter |
| Abstract: | While widely accepted models of labor market search imply a constant reservation wage policy, the empirical evidence strongly suggests that reservation wages decline in the duration of search. This paper reports the results of the first real-time-search laboratory experiment. The controlled environment that subjects face is stationary, and the payoff-maximizing reservation wage is constant. Nevertheless, subjects' reservation wages decline sharply over time. We investigate two hypotheses to explain this decline: 1) searchers respond to the stock of accruing search costs, and 2) searchers experience nonstationary subjective costs of time spent searching. Our data support the latter hypothesis, and we substantiate this conclusion both experimentally and econometrically. |
| Keywords: | Labor market ; Job hunting ; Wages ; Employment |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:410&r=lab |
| By: | Alcala, Francisco; Hernandez, Pedro J. |
| Abstract: | Recent international trade literature emphasizes two features in characterizing the current patterns of trade: efficiency heterogeneity at the firm level and quality differentiation. This paper explores human capital and wage differences across firms in that context. We build a partial equilibrium model predicting that firms selling in more-remote markets employ higher human capital and pay higher wages to employees within each education group. The channel linking these variables is firms’ endogenous choice of quality. Predictions are tested using Spanish employer-employee matched data that classify firms according to four main destination markets: local, national, European Union, and rest of the World. Employees’ average education is increasing in the remoteness of firm’s main output market. Market–destination wage premia are large, increasing in the remoteness of the market, and increasing in individual education. These results suggest that increasing globalization may play a significant role in raising wage inequality within and across education groups. |
| Keywords: | vertical differentiation; exporters; Alchian-Allen effect; wage inequality; unobservable skills |
| JEL: | F16 J31 J24 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19403&r=lab |
| By: | Martins, Pedro S. (Queen Mary, University of London); Opromolla, Luca David (Banco de Portugal) |
| Abstract: | The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which are also typically treated as a composite good. However, we show in this paper that firm-level imports can actually be a wage determinant as important as exports. Furthermore, we also find significant differences in the relationship between trade and wages across types of products. In particular, firms that increase their exports (imports) of high- (intermediate-) technology products tend to increase their salaries. Our analysis is based on unique data from Portugal, obtained by merging a matched firm-worker panel and a matched firm-transaction panel. Our data set follows the population of manufacturing firms and all their workers from 1995 to 2005 and allows for several control variables, including job-spell fixed effects. |
| Keywords: | transaction data, globalisation and labour, wage differentials |
| JEL: | F16 J31 F15 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4646&r=lab |
| By: | Amelie Constant; Martin Kahanec; Ulf Rinne; Klaus F. Zimmermann |
| Abstract: | This paper is based on recently collected and rich survey data of a representative sample of entrants into unemployment in Germany. Our data include a large number of migration variables, allowing us to adapt a recently developed concept of ethnic identity: the ethnosizer. To shed further light on the native-migrant differences in economic outcomes, we investigate the labor market reintegration, patterns of job search, and reservation wages across unemployed migrants and natives in Germany. Our results indicate that separated migrants have a relatively slow reintegration into the labor market. We explain this finding by arguing that this group exerts a relatively low search effort and that it has reservation wages which are moderate, yet still above the level which would imply similar employment probabilities as other groups of migrants. |
| JEL: | F22 J15 J61 J64 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp963&r=lab |
| By: | Faini, Riccardo (University of Rome Tor Vergata); Strom, Steinar (University of Oslo); Venturini, Alessandra (University of Turin); Villosio, Claudia (Collegio Carlo Alberto) |
| Abstract: | The paper compares the pattern of wage assimilation of foreigners with both native immigrants and local natives in Italy, a country with large internal and international migration. This comparison, not yet exploited, yields understanding of the role played by language and knowledge of social capital. We use the administrative dataset on dependent employment (WHIP), to estimate a fixed effect model of the weekly wages of males aged 18-45 with controls for selection in return migration and unobserved heterogeneity. The three groups of workers start their careers at the same wage level but, as experience increases, the wage profiles of foreigners and natives, both immigrants and locals, diverge. A positive selection in the returns prevails, so that the foreign workers with lower wages are the most likely to stay in Italy. Also an "ethnic" skill differential emerges and a negative status dependence for those entering at low wage level. |
| Keywords: | migration, assimilation, wage differential |
| JEL: | J31 J61 C23 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4639&r=lab |
| By: | Babecky, Jan; Caju, Philip Du; Kosma, Theodora; Lawless, Martina; Messina, Julian; Room, Tairi |
| Abstract: | It has been well established that the wages of individual workers react little, especially downwards, to shocks that hit their employer. This paper presents new evidence from a unique survey of firms across Europe on the prevalence of downward wage rigidity in both real and nominal terms. The authors analyse which firm-level and institutional factors are associated with wage rigidity. The results indicate that it is related to workforce composition at the establishment level in a manner that is consistent with related theoretical models (e.g. efficiency wage theory, insider-outsider theory). The analysis also finds that wage rigidity depends on the labour market institutional environment. Collective bargaining coverage is positively related with downward real wage rigidity, measured on the basis of wage indexation. Downward nominal wage rigidity is positively associated with the extent of permanent contracts and this effect is stronger in countries with stricter employment protection regulations. |
| Keywords: | Labor Policies,Environmental Economics&Policies,Labor Markets,Income,Markets and Market Access |
| Date: | 2009–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5159&r=lab |
| By: | Yann Algan; Christian Dustmann; Albrecht Glitz; Alan Manning |
| Abstract: | A central concern about immigration is the integration into the labour market, not only of the first generation, but also of subsequent generations. Little comparative work exists for Europe's largest economies. France, Germany and the United Kingdom have all become, perhaps unwittingly, countries with large immigrant populations albeit with very different ethnic compositions. Today, the descendants of these immigrants live and work in their parents' destination countries. This paper presents and discusses comparative evidence on the performance of first- and second-generation immigrants in these countries in terms of education, earnings, and employment. |
| Keywords: | Immigration, Earnings, Employment, education, France, Germany, UK |
| JEL: | J30 J61 J64 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0951&r=lab |
| By: | Simonsen, Marianne (University of Aarhus); Skipper, Lars (AKF, Danish Institute of Governmental Research) |
| Abstract: | We shed new light on the effects of having children on hourly wages by exploiting access to data on the entire population of employed same-sex twins in Denmark. Our second contribution is the use of administrative data on absenteeism; the amount of hours off due to holidays and sickness. Our results suggest that childbearing reduces female hourly wages but the principal explanation is in fact mothers' higher levels of absence. We find a positive wage premium for fathers. |
| Keywords: | fertility, wages, twins |
| JEL: | J13 J24 J31 J71 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4650&r=lab |
| By: | Andres Erosa; Luisa Fuster; Diego Restuccia |
| Abstract: | Despite mandatory parental leave policies being a prevalent feature of labor markets in developed countries, their aggregate effects in the economy are not well understood. To assess their quantitative impact, we develop a general equilibrium model of fertility and labor market decisions that builds on the labor matching framework of Mortensen and Pissarides (1994). We find that females gain substantially with generous policies but this benefit occurs at the expense of a reduction in the welfare of males. Leave policies have important effects on fertility, leave taking decisions, and employment. These effects are mainly driven by how the policy affects bargaining -- young females anticipate future states with higher threat points induced by the policy. Because the realization of these states depend on the decisions of females to give birth and take a leave, leave policies effectively subsidize fertility and leave taking. We also find that generous paid parental leaves can be an effective tool to encourage mothers to spend time with their children after giving birth. |
| Keywords: | human capital; labor market equilibrium; parental leave policies; fertility; temporary separations |
| JEL: | E24 E60 J2 J3 |
| Date: | 2009–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-385&r=lab |
| By: | Gregory Gilpin (Department of Agricultural Economics and Economics, Montana State University) |
| Abstract: | Most researchers find that the non-teaching wage has a significant effect on teacher attrition. Surprisingly no study that estimates this effect actually uses former teachers? wages. The use of aggregate wage data can potentially cause upward bias coefficients due to selection issues. Using wages of former teachers in a simultaneous probit-tobit system of equations, the effect is estimated and found to be insignificant. The results indicate that higher teaching wages and student teaching significantly lower attrition while being attacked or threatened during the previous school year and whether the teacher lives in a household with income above $40,000 significantly increase attrition. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2009-022&r=lab |
| By: | Forslund, Anders (IFAU - Institute for Labour Market Policy Evaluation) |
| Abstract: | Comparing Sweden to other EU countries, labour force participation rates of older individuals and females are high. These facts are consistent with the idea that institutional design matters: access to child care, paid parental leave, and a tax system with individual rather than household income taxation, probably explain a significant fraction of the high female participation rate; and the evidence suggests that the design of pension systems has an impact on the labour force participation of the elderly. Active labour market policies may contribute to high labour force participation, but cannot be relied on as a major means of raising employment and participation in the long run. |
| Keywords: | Labour supply; taxes; income support systems |
| JEL: | H55 J21 J26 |
| Date: | 2009–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_030&r=lab |
| By: | Pouliakas, Konstantinos (University of Aberdeen); Roberts, Deborah (University of Aberdeen); Balamou, Eudokia (University of Patras); Psaltopoulos, Demetrios (University of Patras) |
| Abstract: | The paper uses a regional Computable General Equilibrium (CGE) model to analyse the effects of immigration on three small remote EU regions located within Scotland, Greece and Latvia. Two migration scenarios are assessed. In the first, total labour supply is affected. In the second, the importance of migratory flows by differential labour skill types is investigated. The results indicate significant differences in the extent to which regional economies are affected by immigration. They also suggest that remote regions are highly vulnerable to the out-migration of skilled workers ('brain-drain') while the in-migration of unskilled workers leads to widening wage inequality. |
| Keywords: | immigration, CGE, skills, wage inequality, brain-drain, regional economies |
| JEL: | D33 D58 R13 R23 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4648&r=lab |
| By: | Billger, Sherrilyn M. (Illinois State University); Beck, Frank D. (Illinois State University) |
| Abstract: | Facing substantial financial pressure, many districts close schools in order to preserve solvency and improve student outcomes. Using a new longitudinal data set on all non-Cook County Illinois schools, we examine the determinants of high school closure decisions from 1991 through 2005. Our dataset combines information from a wide variety of sources, including the Illinois State Board of Education, the Census Bureau, the Illinois Department of Revenue, and the Bureau of Labor Statistics. Prior studies in this area typically use cross-sectional data, short panels, or case-studies. Schools that close have lower enrollments, are located in more rural areas, and have higher per-pupil expenditures. Enrollments and fiscal resources are indeed the most important determinants of school closures. Neither math and reading test scores nor the sociodemographics of the students have a significant impact on high school closure decisions. |
| Keywords: | economics of education, education finance, human capital, secondary education |
| JEL: | I22 I21 J24 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4641&r=lab |
| By: | Ramos, Raul (University of Barcelona); Surinach, Jordi (University of Barcelona); Artís, Manuel (University of Barcelona) |
| Abstract: | The aim of this work is to assess the effectiveness of active labour market policies carried out by the Catalan Public Employment Services (SOC) during the year 2005. The results obtained from the application of matching techniques show that the probability of finding a job for an individual who participated in any of the analyzed SOC's actions is 5 percentage points higher in relation to those who did not participate. The individual analysis of the different programs has shown the effectiveness of the greater part of the actions carried out. Last, the results have also highlighted the further improvement of the combination of some of the actions. |
| Keywords: | active labour market policies, unemployment, propensity score matching |
| JEL: | C31 J64 J68 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4649&r=lab |
| By: | Olga Shurchkov (Wellesley College) |
| Abstract: | Gender gaps in income and level of position in the workplace are widespread. One explanation for this inequality is that the genders perform differently under competitive conditions, as previous experimental studies have found a significant gender gap in competitive tasks that are perceived to favor men. In this paper, we use a verbal task that is perceived to favor women and find no gender difference under competition per se. We also reject the hypothesis that a .stereotype threat. explains the inability of women to improve performance under competition. We propose an alternative explanation for gender inequality: namely, that women and men respond differently to time pressure. With reduced time pressure, competition in verbal tasks greatly increases the performance of women, such that women significantly outperform men. This effect appears largely due to the fact that extra time in a competition improves the quality of women’s work, leading them to make fewer mistakes. On the other hand, men use this extra time to increase the quantity of work, which results in a greater number of mistakes. |
| Keywords: | Gender Differences, Competition, Effects of Time Pressure |
| JEL: | C9 J16 J71 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.95&r=lab |
| By: | Babecky, Jan; Caju, Philip Du; Kosma, Theodora; Lawless, Martina; Messina, Julian; Room, Tairi |
| Abstract: | Firms have multiple options at the time of adjusting their wage bills. However, previous literature has mainly focused on base wages. This paper broadens the analysis beyond downward rigidity in base wages by investigating the use of other margins of labor cost adjustment at the firm level. Using data from a unique survey, the authors find that firms make frequent use of other, more flexible, components of compensation to adjust the cost of labor. Changes in bonuses and non-pay benefits are some of the potential margins firms use to reduce costs. The paper also shows how the margins of adjustment chosen are affected by firm and worker characteristics. |
| Keywords: | Labor Markets,Labor Policies,Environmental Economics&Policies,Microfinance,Economic Theory&Research |
| Date: | 2009–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5160&r=lab |
| By: | Schirle, Tammy |
| Abstract: | The distribution of income among seniors in Canada has changed substantially over the past decade, reflecting an overall increase in income and an increase in income inequality. In this study I decompose the distribution of income among senior couples to determine the extent to which changes in the labour market activity and retirement experiences of women and men have contributed to this shift in the income distribution. I use data from the Canadian Survey of Labour and Income Dynamics, 1996 and 2006, and the methods of Firpo, Fortin and Lemieux (2007, 2009). Results suggest increases in women's access to pension income and employment have driven increases in income across the distribution with relatively small disequalizing effects. Increases in women's access to public pensions have had important equalizing effects, while most of the increase in senior income inequality can be attributed to increases in senior men's and women's education levels. |
| Keywords: | Income Distribution, Elderly, Seniors, Women's Labour Supply, Pensions |
| JEL: | J14 J26 J32 I32 |
| Date: | 2009–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:clssrn:clsrn_admin-2009-68&r=lab |
| By: | Brugiavini, Agar (University of Venice) |
| Abstract: | This paper looks at welfare reforms in Italy and their effects on labour supply. I focus on social security reforms, which have taken place in the 1990s and on labour market reforms. Old age social security expenditure in Italy is high (14% of GDP) and the system has been very generous on early retirement possibilities: the reforms have tried to tackle these issues with mixed results. The labour market reforms have addressed the rigidity of the labour market by making it easier for firms to hire on a short-term basis. However the UI system is limited to open-ended contracts and coverage is also restricted, so that young workers employed in short-term contracts have very little protection from the welfare state. |
| Keywords: | Social security system; unemployment insurance; labour supply |
| JEL: | H53 H55 I38 J08 J26 J65 |
| Date: | 2009–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_029&r=lab |
| By: | Sonia Oreffice (University of Alicante); Climent Quintana-Domeque (Universitat d’Alacant & FEDEA) |
| Abstract: | We empirically analyze the labor supply choices of married men and women according to their body size (BMI), using data from the Panel Study of Income Dynamics on anthropometric characteristics of both spouses, and unmarried men and women as comparison group. Heavier husbands are found to work significantly more hours and earn more labor income, controlling for both spouses’ demographic and socioeconomic characteristics. Conversely, no such effect is found for either unmarried individuals or for married women. We suggest a marriage market mechanism through which male BMI and earnings are positively related. Heavier married men compensate for their negative physical trait by providing their wives with more disposable income, working more hours and earning more. Heavier women may not able to compensate their spouse through labor supply, as female physical traits are more relevant in the marriage market than the corresponding male traits. |
| Keywords: | Body Size, Labor Supply, Earnings, Marriage |
| JEL: | D1 I1 J1 J22 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.116&r=lab |
| By: | Caliendo, Marco (IZA) |
| Abstract: | In view of the demographic trends, most EU countries face the problem of a declining work force in the future. Understanding the interaction between income support systems (such as unemployment benefits, social assistance, early retirement and pension systems) and total labor supply is of crucial importance to combat problems and ensure economic growth in the future. The German labor market has been plagued by high and persistent unemployment in the last two decades in combination with a relatively low labor force participation of women. This created a situation where labor market reforms were unavoidable. The speed and depth of the reforms are remarkable, mainly aimed at activating people by increasing their incentives to take up work. The aim of this paper is to give a brief overview of the German income support systems and labor market polices, their recent reforms and—where already possible—effects of these reforms. Overall, Germany seems to be on the right track. The recent reforms helped to tackle some labor market problems but also created high political unrest. It remains to be seen how future governments react to worsened economic conditions in light of these experiences. |
| Keywords: | Unemployment; Labor force participation; labor supply; benefit systems; public policy |
| JEL: | J26 J38 J68 |
| Date: | 2009–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_026&r=lab |
| By: | Martin Gustafsson (Department of Economics, University of Stellenbosch); Firoz Patel (System Planning and Monitoring, Department of Education) |
| Abstract: | A review of a few input-output models indicates the importance of teacher ability, which may be independent of years of training, for improving pupil performance. A historical analysis confirms the substantial pay increases experienced by teachers in the mid-1990s, moderate pay increases in real terms since 1996, and a falling ratio of teacher pay to GDP per capita. Analysis of Labour Force Survey data reveals that in 2007 teachers were paid less than other professionals, even if the comparison is made conditional on a number of non-pay variables. Working hours is not used as a conditioning variable, however, and low pupil performance levels suggest that the average productivity of teachers is not high. In 2007 the age-pay slope for teachers was flatter than that for other professionals. The impact of the 2008 changes to the teacher pay system are considered. These changes initiate a gradual closing of the pay gap between teachers and other professionals, and convert a rather flat age-pay slope for teachers into one that compares favourably to that of other professionals, and to those of teachers in other countries. The fact that the new system links progression up the salary scales to the behavioural input characteristics of teachers is line with good practice elsewhere, but the linking of pupil performance to teacher pay is probably best undertaken collectively at the level of the school. The teaching hours put in by teachers compares favourably to those in other countries, yet the utilisation of teacher time in many schools is not optimal, resulting in class sizes that are unacceptably high. |
| Keywords: | Teacher, School, Wage Differentials, Incentive, South Africa |
| JEL: | H52 I28 J31 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers99&r=lab |
| By: | Gunnar Bårdsen (Norges Bank and Norwegian University of Science and Technology); Stan Hurn (Queensland University of Technology); Zoë McHugh (Royal Bank of Scotland) |
| Abstract: | The unemployment rate in Australia is modelled as an assymmetric and non-linear function of aggregate demand, productivity, real wages and unemployment benefits. Negative changes in aggregate demand cause the unemployment rate to rise rapidly, while real wage rigidity contributes its to slow adjustment back towards a lower level of unem- ployment. The model is developed by exploiting recent developments in automated model-selection procedures. |
| Keywords: | unemployment, non-linearity, dynamic modelling, aggregate demand, real wages |
| JEL: | C12 C52 C87 E24 E32 |
| Date: | 2010–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2010-02&r=lab |
| By: | Chaudhuri, Sarbajit |
| Abstract: | The paper is purported to examine the consequences of possible labour market reform in the developing economies on the incidence of child labour and economic well-being of the child labour supplying families. A two-sector, full-employment general equilibrium structure with child labour and imperfection in the market for adult labour has been used for the analytical purpose. Although this policy is likely to lower the incidence of child labour the welfare of the families supplying child labour worsens. The paper, therefore, questions the desirability of a policy designed at mitigating the child labour problem especially when it makes the poor families worse off. |
| Keywords: | Child labour; labour market reform; welfare of poor families; general equilibrium |
| JEL: | J13 J10 F10 I28 |
| Date: | 2009–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19667&r=lab |
| By: | Akay, Alpaslan (IZA) |
| Abstract: | We analyse the dynamics of employment assimilation of first-generation immigrant men in Sweden using a high-quality, register-based panel data set. It is discussed that when there are significant differences between employment status persistence of immigrants and natives, the standard static assimilation model produces biased predictions for the relative labour market outcomes for immigrants. We find significant persistence of employment status which differs between immigrants and natives, and also across immigrant groups. The static assimilation model overestimates (underestimates) the short-run (long-run) marginal assimilation rates. We find 10-15 percentage points lower initial employment probability disadvantage but the years to assimilation are 5-10 years longer compared to the standard static assimilation model. |
| Keywords: | dynamic random-effects probit model, employment assimilation, initial values problem |
| JEL: | C33 J15 J61 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4655&r=lab |
| By: | Mihaela Pintea (Department of Economics, Florida International University) |
| Abstract: | I develop a model with status concerns to analyze how different economic factors affect female participation, average household income and wage, as well as the welfare of both stay-at-home and working wives. Reductions in the price of domestic goods and increases in female wages have positive effects on female participation. Increases in male wages have different effects on female participation depending on whether they affect female wages or not. Events that lead to increases in female participation are usually associated with decreases in the welfare of stay-at-home wives, but are not necessarily associated with increases in welfare of working wives |
| Keywords: | female labor force participation; relative income |
| JEL: | D62 E24 J16 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0915&r=lab |
| By: | Bargain, Olivier (University College Dublin); Doorley, Karina (University College Dublin) |
| Abstract: | In-work transfers are often seen as a good trade-off between redistribution and efficiency, as they alleviate poverty among low-wage households while increasing financial incentives to work. The present study explores the consequences of extending these transfers in Ireland, where support for low-wage households has been of limited scope. The employment and poverty effects of alternative policies are analyzed thanks to counterfactual simulations built using a micro-simulation model, the Living in Ireland Survey 2001 and labour supply estimations. Firstly, we study the effect of recent extensions of the existing scheme, the Family Income Supplement (FIS), and of its replacement by the refundable tax credit in force in the UK. Secondly, little is known about the impact of macro-level changes on the distribution of resources at the household level, which is particularly relevant in a country deeply affected by the current economic downturn. We suggest a preliminary analysis of the capacity of alternative in-work transfer scenarios to cushion the negative impact of earnings losses and cuts in the minimum wage. |
| Keywords: | microsimulation, working poor, welfare, labour supply, take-up |
| JEL: | C25 C52 H31 J22 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4644&r=lab |
| By: | Sologon, Denisa Maria (Maastricht University); O'Donoghue, Cathal (Teagasc Rural Economy Research Centre) |
| Abstract: | Do EU citizens have an increased opportunity to improve their position in the distribution of lifetime earnings? To what extent does earnings mobility work to equalize/disequalize longer-term earnings relative to cross-sectional inequality and how does it differ across the EU? Our basic assumption is that mobility measured over a horizon of 8 years is a good proxy for lifetime mobility. We used the Shorrocks (1978) and the Fields (2008) index. Moreover, we explored the impact of differentials attrition on the two indices. The Fields index is affected to a larger extent by differential attrition than the Shorrocks index, but the overall conclusions are not altered. Based on the Shorrocks (1978) index men across EU have an increasing mobility in the distribution of lifetime earnings as they advance in their career. Based on the Fields index (2008) the equalizing impact of mobility increases over the lifetime in all countries, except Portugal, where it turns negative for long horizons. Thus, Portugal is the only country where mobility acts as a disequalizer of lifetime differentials. The highest lifetime mobility is recorded in Denmark, followed by UK, Belgium, Greece, Ireland, Netherlands, Italy, France, Spain, Germany, and the lowest, Portugal. The highest mobility as equalizer of longer term inequality is recorded in Ireland and Denmark, followed by France and Belgium with similar values, then UK, Greece, Netherlands, Germany, Spain and Italy. |
| Keywords: | panel data, wage distribution, inequality, mobility |
| JEL: | C23 D31 J31 J60 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4642&r=lab |
| By: | Regis Barnichon |
| Abstract: | Shimer (2005) argues that the Mortensen-Pissarides (MP) model of unemployment lacks an amplification mechanism because it generates less than 10 percent of the observed business cycle fluctuations in unemployment given labor productivity shocks of plausible magnitude. This paper argues that part of the problem lies with the identification of productivity shocks. Because of the endogeneity of measured labor productivity, filtering out the trend component as in Shimer (2005) may not correctly identify the shocks driving unemployment. Using a New-Keynesian framework to control for the endogeneity of productivity, this paper estimates that the MP model can account for a third, and possibly as much as 60 percent, of fluctuations in labor market variables. |
| Keywords: | Labor market ; Unemployment ; Labor productivity |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2009-04&r=lab |
| By: | John T. Addison; Lutz Bellman; Alex Bryson; André Pahnke; Paulino Teixeira |
| Abstract: | Industrial relations are in flux in many nations, perhaps most notably in Germany and Britain. That said, comparatively little is known in any detail of the changing pattern of the institutions of collective bargaining and worker representation in Germany and still less in both countries about firm transitions between these institutions over time. The present paper maps changes in the importance of the key institutions, 1998-2004, and explores the correlates of two-way transitions, using successive waves of the German IAB Establishment Panel and both cross-sectional and panel components of the British Workplace Employment Relations Survey. We identify the workplace correlates of the demise of collective bargaining in Britain and the erosion of sectoral bargaining in Germany, and identify the respective roles of behavioral and compositional change. |
| Keywords: | union recognition, union coverage, sectoral and firm-level collective bargaining, works councils, joint consultative committees, changes in collective bargaining/worker representation states, bargaining transitions and their determinants |
| JEL: | J50 J53 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0954&r=lab |
| By: | Nicole Maestas; Julie Zissimopoulos |
| Abstract: | Population aging is not a looming crisis of the futureÑit is already here. The ultimate impact of population aging on our standard of living in the future depends a great deal on how long people choose to work before they retire from the labor force. Here there is reason for optimism. In this paper the authors document the striking shift in the U.S. population age distribution well under way, identify the primary reasons for the historic turnaround in labor force participation, and argue that forces such as changes in the structure of employer-provided pensions and Social Security are likely to propel future increases. They explore the diversity of adaptations already at play in the labor market as older men and women seek to extend their working lives and finally, relate these findings in the U.S. to other OECD countries. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ran:wpaper:728&r=lab |
| By: | Erling Barth; Alex Bryson; Harald Dale-Olsen |
| Abstract: | We explore the effects of management innovations on worker well-being using private sectorlinked employer-employee data for Britain. We find management innovations are associated withlower worker well-being and lower job satisfaction, an effect which becomes more pronouncedwhen we account for the endogeneity of innovation. This is the case for three different countmeasures of innovation - a global measure of innovation and measures for labour innovationsand capital innovations. The effects are ameliorated when workers are covered by a collectivebargaining agreement. |
| Keywords: | innovation, well-being, job satisfaction, trade unions |
| JEL: | J28 J51 J81 L23 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0953&r=lab |
| By: | Ingo Geishecker |
| Abstract: | This paper analyzes the impact of job insecurity perceptions on individual well-being. While previous studies on the subject have used the concept of perceived job insecurity rather arbitrarily, the present analysis explicitly takes into account individual perceptions about both the likelihood and the potential costs of job loss. We demonstrate that any model assessing the impact of perceived job insecurity on individual well-being potentially su®ers from simultaneity bias yielding upward-biased coe±cients. When applying our concept of perceived job insecurity to concrete data from a large household panel survey we ¯nd the true unbiased e®ects of perceived job insecurity to be more than twice the size of estimates that ignore simultaneity. Accordingly, perceived job insecurity ranks as one of the most important factors in employee well-being and paradoxically can be even more harmful than actual job loss with subsequent unemployment. |
| Keywords: | job security, life satisfaction, unemployment |
| JEL: | D84 J63 Z13 |
| Date: | 2009–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:got:cegedp:90&r=lab |
| By: | Rosario Crinò (Institut d’Analisi Economica, CSIC and Centro Studi Luca d’Agliano) |
| Abstract: | This paper studies the e¤ects of service o¤shoring on the level and skill composition of domestic employment, using a rich data set of Italian rms and propensity score matching techniques. The results show that service o¤shoring has no e¤ect on the level of employment but changes its composition in favor of high skilled workers. |
| Keywords: | Service Offshoring; Employment; Skills; Propensity Score Matching; Sensitivity Analysis |
| JEL: | F1 |
| Date: | 2009–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:286&r=lab |
| By: | Paul Gregg; Lindsey Macmillan |
| Abstract: | The relationship between the incomes of the family a child is growing up in and the education level the child obtains has been of great interest to researchers for a number of reasons. Firstly, this gives us a measure of educational inequality in its own right and secondly, because the relationship between family income and education is also one of the key drivers of intergenerational income mobility across time in the UK and gradients in life chances across a range of other domains. This paper explores the evolution of the relationship between family income and education for a group of cohorts from those born in 1958 to those born in 1991/92. The range of educational relationships we can measure obviously depends on the age of the child. For older cohorts, who we observe as finished in education, we can measure the full range of educational outcomes up to degree level and their relationship with family income. For younger cohorts who are in earlier stages of education, we can measure test scores and GCSE results but not later educational outcomes. |
| Keywords: | Intergenerational mobility, children, education |
| JEL: | J62 J13 J31 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:09/223&r=lab |
| By: | Simon Fietze; Elke Holst; Verena Tobsch |
| Abstract: | The female share in management positions is quite low in Germany. The higher the hierarchical level, the fewer women there are in such positions. Men have numerous role models to follow whereas women lack this opportunity: In the executive boards of the top 200 private companies in Germany, only 2.5 percent of members are female. Many studies have focused on the influence of human capital and other "objective" factors on career opportunities. In our study, we go a step further by also looking at the impact of self-reported personality traits on gender differences in career chances. We compare managers and other white-collar employees in Germany's private sector. While bivariate results based on data from the German Socio-Economic Panel (SOEP) in 2005 show that there are significant gender differences in personality traits, multivariate estimations clearly indicate that these differences cannot account for gender differences in career opportunities. Nevertheless, personality traits might indeed play a role, albeit more indirectly: Some of the stronger career effects, such as work experience, long working hours, and labour market segregation, can also reflect differences in personality traits. These might have been influenced at an early stage by a gender-biased environment. Our results strongly stress the need for a gender-neutral environment outside and inside companies in order to enforce equal career opportunities for women and men. |
| Keywords: | personality, gender, career, leadership |
| JEL: | J16 M12 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp250&r=lab |
| By: | Vu Hoang Nam (Faculty of International Economics, Foreign Trade University, Vietnam); Dao Ngoc Tien (Faculty of Economics and International Business, Foreign Trade University, Vietnam); Phan Thi Van (Faculty of Economics and International Business, Foreign Trade University, Vietnam) |
| Abstract: | While village industries are known to play an important role in the development of rural areas in developing countries, little is known about village industries in transition economies. Also, little attention has been paid to the question of how human capital contributes to the choice of jobs and income of workers in these village industries. This paper inquires into the determinants of the workers' choice of jobs and income in two village-based industrial clusters in Northern Vietnam. We found that formal schooling plays an important role in the self-selection of jobs and income of workers in all of the villages. |
| Keywords: | Vietnam; Industrial cluster |
| JEL: | O14 O53 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0710&r=lab |
| By: | Luigi Guiso; Luigi Pistaferri; Fabiano Schivardi |
| Abstract: | We exploit time variation in the degree of development of local credit markets and matched workers-firm data with workers histories to assess the role of the firm as an internal loans market. By tilting the workers wage-tenure profile around their tenure-productivity profile, the firm can generate borrowing flows from workers to the firm (when the earnings profile is steeper than the productivity profile) or vice versa from the firm to the workers (when the earnings profile is fatter), thus compensating for the imperfect functioning of the loans market. We find that firms located in less financially developed areas offer wages that are lower at the beginning of tenure and higher at the end than those offered by firms in more financially developed markets, which helps firms finance their operations by raising funds from workers. This effect does not reflect unobserved local factors that systematically affect wage tenure profiles, since we control for local market effects and only exploit variation time variation in the degree of local financial development induced by effects of exogenous liberalization. The credit generated by implicit lending within the firm is economically important and can be as large as 30% of bank lending. Implicit contracts help more those firms that have a problematic access to the loans market and funds come more from workers with a stronger willingness to lend. Consistent with credit market imperfections opening a trade opportunity within the firm we find that the internal rate of return of implicit loans lies between the rate at which workers savings are remunerated and the rate firms pay on their loans from banks. |
| Keywords: | Implicit contracts, financial frictions, tenure profile, wage setting |
| JEL: | J3 L2 G3 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd09-097&r=lab |
| By: | Admasu Shiferaw (University of Göttingen); Arjun Bedi (International Institute of Social Studies, Erasmus University Rotterdam) |
| Abstract: | This paper analyzes the creation, destruction and reallocation of jobs to better understand the micro-dynamics of aggregate employment change in African manufacturing. The nature and magnitude of gross job flows are examined using a unique panel data of Ethiopian manufacturing establishments over the period 1996-2007. We also assess the relative importance of firm demographics, industry effects and business cycles for job flows. The rates and patterns of job creation and destruction in our sample are comparable to the findings from developed and emerging economies suggesting that African firms adjust their labor force in a manner broadly similar to firms elsewhere and that African labor markets are not uniquely restrictive to undermine job reallocation across firms. We also find, like in many other countries, that job reallocation is relatively higher in industries dominated by small and young establishments. Unlike in other regions, however, job reallocation in our sample is pro-cyclical and its cross-industry variation holds very little similarity with that of developed and emerging economies. Small firms in Africa create jobs mainly at the point of entry to a market with limited contribution to manufacturing employment through post-entry expansion. |
| Keywords: | Job Creation; Job Destruction; Job Reallocation; Firm Dynamics; Sub-Saharan Africa; Ethiopia |
| JEL: | J20 J23 J49 |
| Date: | 2010–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:022&r=lab |
| By: | Sabatini Fabio |
| Abstract: | This paper uses a dataset built by the author on the basis of raw data taken from different national surveys to carry out an investigation into the socio-economic determinants of couples’ childbearing decisions in Italy. Since having children is in most cases a “couple matter”, the analysis accounts for the characteristics of both the aspiring parents. Our results contradict theoretical predictions according to which the increase in the opportunity cost of motherhood connected to higher female labour participation is responsible for the fall in fertility. On the contrary, the instability of the women’s work status (i.e. their being occasional, precarious, and low-paid workers) reveals to be a significant and strong dissuasive deterrent discouraging the decision to have children. Couples with unemployed women are less likely to plan childbearing as well. Other relevant explanatory variables are age, current family size, and the strength of family ties. |
| Keywords: | Fertility, Family planning, Childbearing, Labour market, Female participation, Labour precariousness, Social capital, Italy |
| JEL: | C25 J13 Z1 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:ter:wpaper:0058&r=lab |
| By: | Zeenat Soobedar (Queen Mary, University of London) |
| Abstract: | This paper examines the labour supply disincentives of the Income Support system among single mothers with no qualifications in the UK. It uses a regression discontinuity approach that exploits the age-eligibility rule establishing automatic withdrawal of Income Support for single mothers whose youngest child turns 16. At this cut-off age, barely ineligible mothers experience an 8.5% increase in their probability of working and an increase in hours of work of about 3. This is consistent with pronounced labour supply disincentives of the income support policy. |
| Keywords: | Single mothers, Income Support, Labour supply, Regression discontinuity |
| JEL: | C21 I38 J12 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp656&r=lab |
| By: | Joanna Tyrowicz (National Bank of Poland, Economic Institute; University of Warsaw, Faculty of Economics) |
| Abstract: | This paper reviews the literature on the labour market institutions in European Union Member States in the context of monetary integration. Traditionally, labour markets are a key concept in the optimal currency area theory, playing the role of the only accommodation mechanism of asymmetric shocks after the monetary unification. There are several theoretical frameworks linking the institutional design of the labour market to the potential effectiveness of monetary policy in the context of currency areas. Many empirical studies addressed these issues too, yielding important policy implications for labour market reforms in the process of monetary unification. However, there seem to be "white spots” in this patchwork, which may actually be particularly useful from the perspective of CEECs upon the accession to the euro zone. We suggest these research directions encompassing labour supply and theoretical frameworks of labour market flexibility benchmarking in the context of monetary integration. |
| Keywords: | labour market institutions, monetary integration, labour market reform, CEECs, EMU |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:61&r=lab |
| By: | Junankar, Pramod N. (Raja) (University of Western Sydney) |
| Abstract: | The paper analyses the problem of a "skills shortage" in Australia. It begins with an analysis of the operation of a labour market in terms of stocks and flows of labour services and human capital acquisition. It discusses the definition of a skills shortage, why it persists, and then looks at evidence from Australia, in particular, the resource rich states of Queensland and Western Australia over the past decade. It discusses possible employer responses to a skills shortage. Finally, it discusses whether the government should intervene, and if so what policies may help to relieve a skills shortage. |
| Keywords: | skill shortages, wage adjustments, migrants |
| JEL: | J24 J31 J48 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4651&r=lab |
| By: | Kulsoom, Rafia |
| Abstract: | Child labor is one of the problems that occur as a result of responses to the economic problems faced by vulnerable children. Keeping in view the theoretical background of existence of child labor across the world, the study analyzes the incidence of child labor from Rawalpindi city of Pakistan. It also empirically investigates the household demographics and incidence of child labor. The earning and participation functions were estimated for a sample of 150 children. All the coefficients and overall model was observed to be statistically significant. The major determinant of child labor is poverty. Age of the child has a positive impact on participation decisions: The older the child, the more probable he is to go to work. The ownership of asset has shown a negative impact on participation decisions. The study proposes that several income support measures should be provided to poor households as an instrument for reducing child labor. |
| Keywords: | Child labor; labor supply; hours of work; asset holding |
| JEL: | I30 J01 J22 J20 J11 J80 J31 J10 I38 J0 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19161&r=lab |
| By: | R. Jason Faberman |
| Abstract: | This paper revisits the argument, posed by Rupert, Rogerson, and Wright (2000), that estimates of the intertemporal elasticity of labor supply that do not account for home production are biased downward. The author uses the American Time Use Survey, a richer and more comprehensive data source than those used previously, to replicate their analysis, but he also explores how other factors interact with household and market work hours to affect the elasticity of labor supply. An exact replication of their analysis yields an elasticity of about 0.4, somewhat larger than previously estimated. Once the author accounts for demographics and household characteristics, particularly the number of children in the household, the estimate is essentially zero. This is true even when accommodating extensive-margin labor adjustments. Households' biological inability to smooth childbearing over the life cycle and the resulting income effect on market work hours drive this result. |
| Keywords: | Labor supply ; Hours of labor ; Labor productivity |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:10-3&r=lab |
| By: | Iga Magda; David Marsden; Simone Moriconi |
| Abstract: | Using a large matched employer-employee dataset, the authors investigate the relationship between collectiveagreements, wages and restructuring in transition in three former centrally planned economies (Czech Republic,Hungary and Poland). They adopt a natural experiment approach and capture the restructuring process triggeredby the launch of transition by means of cohort effects among firms founded before or at different stages of thisprocess which enable them to control for the heterogeneity of firms in different cohorts. They find that the wagepremium associated with different levels of collective agreements depends on restructuring and its timing in thetransition. In early-middle transition firms, industry level agreements protect low skilled wages; whereas in latetransition ones, firm level agreements increase medium and especially high skilled wages. Some cross countrydifferences emerge in the structure of the wage premium as a result of country specific features of restructuring. |
| Keywords: | Collective agreements, wages, transition economy, restructuring |
| JEL: | J31 J51 P2 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0959&r=lab |
| By: | Lisa Barrow; Thomas Brock; Lashawn Richburg-Hayes; Cecilia Elena Rouse |
| Abstract: | We evaluate educational outcomes from an experiment which randomly assigned performancebased scholarship eligibility to students on community college campuses. Scholarships were awarded in three payments each semester over the course of two semesters. Payments were tied to students meeting two conditions—enrolling at least half time and maintaining a “C” or better semester grade point average. We find that the program increased the likelihood a student was enrolled at the program institutions in both the first and second semesters after random assignment and increased the total number of credits attempted and earned each semester. One year after random assignment, program group students were more likely to persist at their program institution, and one and two years after random assignment, program group students had completed 3-4 credits more than the control group students. We find little evidence that program eligibility induced students to change the types of courses taken but some evidence that the program may have increased academic performance and effort conditional on enrollment. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:wp-09-13&r=lab |
| By: | Sven Fischer (Max Planck Institute for Research on Collective Goods); Eva-Maria Steiger (Stratigic Interaction Group, Max Planck Institute of Economics, Jena) |
| Abstract: | We experimentally test whether intentional and observable discriminatory pay of symmetric agents in the Winter (2004) game causes low paid agents to reduce effiort. We control for intentionality of wages by either allowing a principal to determine wages or by implementing a random process. Our main observations are that discrimination has no negative effiect on effiorts and principals do not shy away from using discriminatory pay if it is observable. Rather, with experience discrimination enhances efficiency as it facilitates coordination among agents. The only evidence for reciprocity is that subjects receiving a low payment from a principal (discriminatory or not) exert signiï¬cantly less effort. |
| Keywords: | wage discrimination, experimental study, envy, reciprocity, pay secrecy |
| JEL: | C72 C91 D21 J31 |
| Date: | 2009–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-107&r=lab |
| By: | Dante Contreras G.; Tomás Rau B. |
| Abstract: | In this paper we evaluate the introduction of monetary incentives for teachers, based on a school performance tournament in Chile. We evaluate the tournament effect, i.e. the effect of introducing the incentive scheme on all participant schools: winners and losers. We also evaluate the effect of winning the tournament on next period school performance that we call the gift-exchange effect. Matching and Regression Discontinuity techniques are used to identify both treatment effects. The results indicate a positive and significant tournament effect and a positive but nonsignificant gift-exchange effect. |
| JEL: | I21 I28 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp305&r=lab |
| By: | Échevin, Damien |
| Abstract: | This paper assesses the employment and school enrollment gaps between disabled and non-disabled persons using the last Cape Verdean census. The unexplained part of these gaps accounts for most of them, whatever the age group considered. Furthermore, differences in age structures between disabled and non-disabled persons have almost no effect on these gaps. Taking into account potential misclassification errors in the disability variable seems to change only marginally these results. These findings thus suggest that there is scope for programs to better target and promote employment and education of the disabled in Cape Verde. |
| Keywords: | disability; economic and social discrimination; misclassification; Cape Verde; Africa. |
| JEL: | J14 O55 J71 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19497&r=lab |
| By: | Maria Bas; Juan Carluccio |
| Abstract: | Do variations in labor market institutions across countries affect the cross-borderorganization of the firm? Using firm-level data on multinationals located in France, we showthat firms are more likely to outsource the production of intermediate inputs to externalsuppliers when importing from countries with empowered unions. Moreover, this effect isstronger for firms operating in capital-intensive industries. We propose a theoreticalmechanism that rationalizes these findings. The fragmentation of the value chain weakens theunion's bargaining position, by limiting the amount of revenues that are subject to unionextraction. The outsourcing strategy reduces the share of surplus that is appropriated by theunion, which enhances the firm's incentives to invest. Since investment creates relativelymore value in capital-intensive industries, increases in union power are more likely to beconducive to outsourcing in those industries. Overall, our findings suggest that multinationalfirms use their organizational structure strategically when sourcing intermediate inputs fromunionized markets. |
| Keywords: | wage bargaining, trade unions, sourcing, multinational firms |
| JEL: | F10 J52 L22 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0963&r=lab |
| By: | L. Rachel Ngai; Christopher A. Pissarides |
| Abstract: | We examine the distribution of hours of work across industrial sectors in OECD countries.We find large disparities when sectors are divided into three groups: one that produces goodswithout home substitutes and two others that have home substitutes — health and socialwork, and all others. We attribute the disparities to the countries' tax and subsidy policies.High taxation substantially reduces hours in sectors that have close home substitutes but lessso in other sectors. Health and social care subsidies increase hours in that sector. We computethese effects for nineteen OECD countries. |
| Keywords: | hours of work, employment shares, home production, childcare, tax wedge,welfare state, social subsidies |
| JEL: | H53 I18 I38 J22 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0962&r=lab |
| By: | Laszlo Goerke; Markus Pannenberg |
| Abstract: | Severance pay is a vital part of employment protection legislation (EPL). We investigate the incidence and level of severance pay for dismissed employees. Our theoretical model predicts that not only the law and its interpretation by labour courts but also the costs of a suit have an impact. Using West German panel data for 1991-2006, we find that the employees\' costs resulting from a suit and the legal determinants of such transfers affect the incidence of severance payments. In contrast, their level only varies with legal regulations. Our results imply that the strictness of EPL in Germany varies with extra-legal factors like employees\' financial constraints. |
| Keywords: | employment protection legislation, labour law, severance pay, survey data |
| JEL: | J K C C |
| Date: | 2009–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:got:cegedp:87&r=lab |
| By: | Borooah, Vani / K |
| Abstract: | Although methods of analysis based on Bayes’ theorem have had rich applications in Law and in Medicine they have not been much used in Economics. We use Bayes’ theorem to construct two concepts of the “risk” associated with belonging to a particular group in terms of a favourable labour market outcome; this, in the Indian context, is taken as being in “regular employment”. The first concept, the Employment Risk Ratio, measures the odds of a person being in regular employment to being in non-regular employment, given that he belongs to a particular group. The second, the Group Risk Ratio, measures the odds of a person being in regular employment, given that he belongs to one group against belonging to another group. We then apply these concepts of risk to data for four subgroups in India: forward-caste Hindus; Hindus from the Other Backward Classes; Dalits (collectively the Scheduled Castes and Scheduled Tribes); and Muslims. We show that, on both measures of risk, forward caste Hindus do best in the Indian labour market. This is partly due to their superior labour market attributes and partly due to their better access to good jobs. When inter-group differences in attributes are neutralised, the favourable labour market performance of forward caste Hindus is considerably reduced. We conclude that it is the lack of attributes necessary for, rather than lack of access to, regular employment that holds back India’s deprived groups. |
| Keywords: | Labour Market; Risk Ratio; India; Caste; Religion |
| JEL: | J15 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19742&r=lab |
| By: | Forslund, Anders (IFAU - Institute for Labour Market Policy Evaluation); Fredriksson, Peter (IFAU - Institute for Labour Market Policy Evaluation) |
| Abstract: | This paper summarizes a set of expert reports commissioned by the IFAU. The expert reports cover Estonia, Germany, Italy, the Netherlands, Sweden, and the United Kingdom. These countries represent range of welfare states, both in terms of scope and design. And in each country there are interesting experiences from which other countries may learn. The overall objective is to identify policy tools that help generate sustained increases in employment in the long run. Therefore, we focus on policies that improve the incentives for labour force participation and reduce the barriers to participation. |
| Keywords: | Labour force participation; employment; income support; long-run sustainability |
| JEL: | J08 J21 |
| Date: | 2009–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2009_032&r=lab |
| By: | Frank T. Denton; Ross Finnie; Byron G. Spencer |
| Abstract: | We analyse a large longitudinal data file to determine who has retired and to assess how successful they are in maintaining their incomes after retirement. Our main conclusions are as follows. First, in the two years immediately after retirement the aftertax income replacement ratios average about two-thirds when calculated across all ages of retirement. Second, the ratios tend to increase with the age of retirement. Third, the ratios increase with years in retirement, at least in the first few years. Finally, income replacement ratios are highest in the lowest income quartile and generally decline as income increases; within each quartile the replacement ratios are higher for those who retired later than for those retired earlier. |
| Keywords: | income replacement, retirement |
| JEL: | J26 D31 J14 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:sedapp:261&r=lab |
| By: | Urban Sila |
| Abstract: | It has been suggested in the literature that taxes and subsidies play an important role inexplaining the differences in working hours across countries. In this paper I test whetherpublic programmes for family support play a role in explaining this variation. I analyse twotypes of policies: childcare subsidies and family cash benefits. I distinguish between peoplewith children and people without children. Childcare subsidies should increase working hoursin the economy and these effects should differ between people with children and peoplewithout children. Public support to families is also expected to decrease the amount of timepeople spend in childcare at home. I test this using household data for a set of Europeancountries and the US. Empirical analysis, however, does not support the family-policyexplanation. The effects of the policies on working hours are weak and insignificant. Inregressions with time spent caring for children as a dependent variable, the estimates of theeffects contradict the predictions of the theory. Furthermore, I don't find evidence for theexpected differences in effects between parents and nonparents. I conclude that familypolicies are not helpful in explaining the variation in working hours across countries. |
| Keywords: | Working hours, household behavior, taxation, subsidies, fiscal policies, child care,time allocation, labor supply |
| JEL: | D1 H20 H31 I38 J13 J18 J22 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0955&r=lab |
| By: | Ritter, Moritz |
| Abstract: | This paper develops a dynamic general equilibrium model in which workers acquire human capital specific to the task they complete. The dynamic nature of the model allows for differentiation between short and long run effects of offshoring on productivity and labour market outcomes. The welfare effects of increased offshoring are unambiguously positive; their magnitude depends on the difference between autarky and world relative prices, but not on the skill-content of offshored and inshored tasks. For reasonable terms of trade, the steady state welfare gains are found to be between 1.8% and 4% in the calibrated model. The distribution of the gains from trade critically depends on the time horizon: in the short term, workers with human capital specific to the inshored occupations gain, while workers with human capital specific to the offshored occupations lose. In the long run, the gains from trade are equally distributed among ex-ante identical agents. |
| Keywords: | Offshoring; Sectoral Labour Reallocation; Human Capital |
| JEL: | F16 J62 E24 J24 |
| Date: | 2009–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19671&r=lab |
| By: | Giovanni Gallipoli (UBC); Laura Turner (UBC) |
| Abstract: | What are idiosyncratic shocks and how do people respond to them? This paper starts from the observation that idiosyncratic shocks are experienced at the individual level, but responses to shocks can encompass the whole household. Understanding and accurately modeling these responses is essential to the analysis of intra-household allocations, especially labor supply. Using longitudinal data from the Canadian Survey of Labour and Income Dynamics (SLID) we exploit information about disability and health status to develop a life-cycle framework which rationalizes observed responses of household members to idiosyncratic shocks. Two puzzling findings associated to disability onset motivate our work: (1) the almost complete absence of `added worker' effects within households and, (2) the fact that single agents' labor supply responses to disability shocks are larger and more persistent than those of married agents. We show that a first-pass, basic model of the household has predictions about dynamic labor supply responses which are at odds with these facts; despite such failure, we argue that these facts are consistent with optimal household behavior when we account for two simple mechanisms: the first mechanism relates to selection into and out of marriage, while the second hinges on insurance transfers taking place within households. We show that these mechanisms arise naturally when we allow for three features: a linkage between human capital accumulation and life-cycle labor supply, endogenous marriage contracts and the possibility of time transfers between partners. We also report evidence that the extended model with endogenous marriage contracts can fit divorce patterns observed in Canadian data, as well as correlations between disability prevalence and marital status, providing an ideal framework to study intra-household risk-sharing with limited commitment. |
| Keywords: | Idiosyncratic Risk, Disability, Life Cycle Labor Supply, Intrahousehold Insurance |
| JEL: | D13 I10 J12 J22 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.97&r=lab |
| By: | Ostrovsky, Yuri; Schellenberg, Grant |
| Abstract: | Data from the Longitudinal Administrative Data (LAD) base are used to compare the retirement status and earnings replacement rates achieved by individuals who were, and individuals who were not, Registered Pension Plan members in 1991 and/or 1992, when they were in their mid-fifties. Among men in this cohort, the likelihood of being retired at age 70 to 72 was about 4 to 14 percentage points higher among pension plan members than non-members. Data used for the study do not provide information on why RPP non-members tend to retire later than do members. Among retired individuals, earnings replacement rates did not differ significantly between RPP members and non-members. |
| Keywords: | Seniors, Income, pensions, spending and wealth, Pension plans and funds and other retirement income programs |
| Date: | 2009–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3e:2009321e&r=lab |
| By: | Satyajit Chatterjee; Felicia Ionescu |
| Abstract: | Participants in student loan programs must repay loans in full regardless of whether they complete college. But many students who take out a loan do not earn a degree (the dropout rate among college students is between 33 to 50 percent). The authors examine whether insurance against college-failure risk can be offered, taking into account moral hazard and adverse selection. To do so, they developed a model that accounts for college enrollment, dropout, and completion rates among new high school graduates in the US and use that model to study the feasibility and optimality of offering insurance against college-failure risk. The authors find that optimal insurance raises the enrollment rate by 3.5 percent, the fraction acquiring a degree by 3.8 percent and welfare by 2.7 percent. These effects are more pronounced for students with low scholastic ability (the ones with high failure probability). |
| Keywords: | Education, Higher - Economic aspects ; Insurance |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:10-1&r=lab |
| By: | P. Sarfo-Mensah (Kwame Nkrumah University of Science and Technology); M.K. Adjaloo (Kwame Nkrumah University of Science and Technology); P. Donkor (Kwame Nkrumah University of Science and Technology) |
| Abstract: | Ghana, like the rest of West Africa is experiencing tremendous human migration both internally and across international boundaries. Rural-urban migration has assumed uncontrollable dimensions in the sub-region and the social consequences have become major development challenge. In Ghana the mining communities have been at the receiving end for some time now. This study on the Obuasi Municipal Assembly (OMA) in the Ashanti region of Ghana explores the tremendous socioeconomic changes, especially demographic patterns as a result of the inflows of migrants into the Obuasi Township and its catchment area in search of non existing jobs especially in mining. A major outcome is the serious unemployment problem in the township with all the attendant social vices. A three-month socio-economic study of the municipality was carried out to determine the scope of unemployment. The study showed that there is acute unemployment situation in the municipality which is due to the fact that AngloGold Ashanti, a mining giant in Ghana, the major employer, has limited job openings especially for menial workers who flock to the company. Other income generating opportunities are few. Agriculture which has the capacity to employ majority of the unemployed youth does not appeal to them because it is considered not lucrative. The acute unemployment situation has contributed significantly to the high crime rate, prostitution and widespread illegal mining activities with their attendant problems. The study explores options that are feasible for a typical mining setting especially for the youth who are very vulnerable and susceptible to crime and other social vices. Job creation, through the development and implementation of sustainable programmes aimed at training the youth to acquire the necessary employable skills is one of the options considered by the municipal managers and their partners. The study also looks at broader policy implications for the Economic Community of West African States (ECOWAS). |
| Keywords: | Illegal Mining, Unemployment, AngloGold Ashanti, Social Vices, Agriculture, Mining Communities, Migration |
| JEL: | J60 J61 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.122&r=lab |
| By: | Dusseldorp, Marc; Beecroft, Richard; Moniz, António |
| Abstract: | “Theory and Practice” of TA, which is referred to in the title of this journal “TATuP”, is usually addressed as a question of TA research. But science is more than research: the field of teaching requires just as much attention, both practically and theoretically. Therefore, a mere collection of individual teaching experiences and best practice examples does not provide a strong enough basis to discuss questions of TA teaching, these must also be embedded in a theoretical context and discussed in their relation to research. In this special issue, we aim to contribute to a combination of theoretical and practical approaches to the relation of TA and “Bildung”. |
| Keywords: | Technology Assessment; education; teaching; high education |
| JEL: | D81 A23 I21 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19522&r=lab |
| By: | Zeenat Soobedar (Queen Mary, University of London) |
| Abstract: | This paper examines the impact of the age-eligibility rule establishing automatic withdrawal of Income Support for single mothers whose youngest child turns 16 on the disability benefits welfare participation decision of single mothers with no qualifications in the UK. Using the age discontinuity in Income Support program assignment, the study reveals that these single mothers are 4.2 percentage points more likely to claim health benefits as their youngest child turns 16, consistent with a theoretical model of benefits choice. More than a quarter of single mothers who were initially on Income Support apply for sickness and disability benefits, out of which 70% claim non-contributory health benefits. |
| Keywords: | Single mothers, Disability benefits, Regression discontinuity |
| JEL: | J12 I38 C21 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp657&r=lab |
| By: | Yuki, Kazuhiro |
| Abstract: | Economic development is associated with the shift of production from the traditional sector (e.g. traditional agriculture and the urban informal sector) to the modern sector (e.g. modern manufacturing and commercial agriculture). Human capital accumulation, particularly, education and job training of skilled workers, is a crucial factor in the modernization of an economy. Several institutions such as the protection of property rights and the strength of the rule of law also are considered essential. Thus, the government has an important role as the main provider of 'institution-maintaining' services, although it often faces a difficulty in providing adequate amounts of the services due to costly hiring of educated officers and tax avoidance. This paper analyzes interactions among taxation, the provision of the public services, human capital accumulation, and modernization, based on a dynamic dual economy model, which draws on the Becker and Murphy (1992) model of skill and task specialization, and examines conditions for successful development. Distributions of political power and wealth as well as sectoral productivities and the cost of education affect the outcome qualitatively. In particular, the socially desirable distribution of political power is such that educated (uneducated) individuals should have dominant power at an early (late) stage of development. Further, it is shown that several novel or overlooked inefficiencies arise naturally from realistic features of the model and appropriate redistribution can correct the inefficiencies except at a fairly early stage of development. |
| Keywords: | dual economy; government; human capital; inequality; overeducation; redistribution; specialization |
| JEL: | O11 O17 O15 H23 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19760&r=lab |
| By: | Scalera, Domenico |
| Abstract: | The Bhagwati brain drain tax proposal dating back to more than thirty years ago has been criticized from different viewpoints. In particular, recent literature has pointed out that this tax would hamper accumulation of human capital by reducing gains from skilled migration. In this paper, it is argued that when taking into account social externalities of human capital, and optimal policies implemented by a government caring only for left behind residents, a brain drain tax tends rather to foster the investment in human capital and increase residents’ income and welfare. The Bhagwati tax could even be universally welfare improving. In fact, if the tax is paid by migrants in addition to the ordinary income taxation, their larger fiscal burden might be outweighed by a higher human capital and gross income. Alternatively, if the transfer is financed by the destination country, its fiscal losses might be outweighed by the advantage of more skilled immigrants. |
| Keywords: | Skilled migration; education policies; Bhagwati tax |
| JEL: | O15 J24 H52 |
| Date: | 2009–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19643&r=lab |
| By: | Quentin David (CREA, University of Luxembourg) |
| Abstract: | In this paper, we analyze the determinants of the production of research by higher edu- cation institutions in the U.S.. We use the information contained in the Shanghai ranking to estimate their performance in the production of top level academic research. We show that it is important to account for the presence of outliers, in both dimensions (x and y axes), among institutions. It appears that most of the top ranked institutions must be con- sidered as outliers. We also treat the endogeneity issue and test for the possible selection bias. We ?nd that the income, the share of this income devoted to expenses in research and the number of professors very significantly increase the ability of an institution to produce top level academic research. We also show that the relationship between the average quality (salary) of professors and the production of research is U-shaped with a signi?cant share of institutions located on the decreasing part of the curve. |
| JEL: | I23 I2 H52 C21 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:09-16&r=lab |
| By: | Baker, Michael; Benjamin, Dwayne; Fan, Elliot |
| Abstract: | In this paper we document the economic outcomes of elderly immigrants to Canada. Our objective is to describe the extent to which elderly immigrants may have low income (are “in povertyâ€) and their interactions with the Canadian income transfer system. The study has two main parts. First, using a combination of administrative and survey data, we describe the age dimensions of immigration to Canada since 1980, and the evolution of policies directed towards older immigrants (i.e., immigration selection, and eligibility for age-related social security programs). Second, using the SCF and SLID surveys spanning 1981 through 2006, we document the composition and levels of income for immigrants to Canada. We estimate the degree to which older immigrants support themselves, either through working, or living with relatives, as well as the degree that they rely on various income transfer programs, especially OAS, GIS, and Social Assistance (SA). We also summarize their overall living standards, and the extent to which they live in poverty (have “low incomes.â€) Throughout the paper, we also explore the family dimensions to the outcomes of older immigrants: distinguishing between individual and family sources of income, as well as outlining differences in the living arrangements (family structure) of older immigrants, and the implications for measures of their well-being |
| Keywords: | Immigration; Retirement; Public Pensions; Living arrangements and family structure |
| JEL: | J61 J26 |
| Date: | 2009–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:clssrn:clsrn_admin-2009-69&r=lab |