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on Labour Economics |
| By: | Herbert Brücker (University of Bamberg, IAB Nürnberg, and IZA Bonn); Elke Jahn (IAB Nürnberg, Arhus University, and IZA Bonn); Richard Upward (University of Nottingham) |
| Abstract: | We investigate the labor market effects of immigration in Denmark, Germany and the UK, three countries which are characterized by considerable differences in labor market institutions and welfare states. Institutions such as collective bargaining, minimum wages, employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks, and, hence, the labor market effects of immigration. We employ a wage-setting approach which assumes that wages decline with the unemployment rate, albeit imperfectly. We find that wage flexibility is substantially higher in the UK compared to Germany and, in particular, Denmark. As a consequence, immigration has a much larger effect on the unemployment rate in Germany and Denmark, while the wage effects are larger in the UK. Moreover, the elasticity of substitution between natives and foreign workers is high in the UK and particularly low in Germany. Thus, the preexisting foreign labor force suffers more from further immigration in Germany than in the UK. |
| Keywords: | immigration, unemployment, wages, labor markets, panel data, comparative studies. |
| JEL: | F22 J31 J61 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2012020&r=lab |
| By: | Marco PECORARO (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and SFM, Université de Neuchâtel) |
| Abstract: | This paper proposes an improved concept of educational mismatch that combines a statistical measure of over- and undereducation with the worker’s self-assessment of skill utilization. In that way, we account for worker heterogeneity in skills whose omission may generate biased estimates of the incidence and wage effects of over- and undereducation. Using cross-sectional data from the Swiss Household Panel survey, the empirical analyses provide the following results: (a) at least two third of the statistically defined overeducated workers perceive their skills as adequate for the job they hold and are then apparently overeducated; (b) among the overeducated with a given schooling level, the wage return to education is lower for those who are mismatched in skills than for those who are not; (c) apparently overeducated workers have similar wage returns compared to others with the same schooling level but who are statistically matched. These findings confirm that most of those overeducated according to the statistical measure have unobserved skills that allow them to work in a job for which they are well-matched. |
| Keywords: | Educational mismatch, skill utilization, wages |
| Date: | 2012–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2012014&r=lab |
| By: | Fredriksson, Peter (Stockholm University, IZA, IFAU, and UCLS); Öckert, Björn (Institute for Evaluation of Labour Market and Education Policy (IFAU), Uppsala University and UCLS); Oosterbeek, Hessel (University of Amsterdam) |
| Abstract: | This paper evaluates the long-term effects of class size in primary school. We use rich data from Sweden and exploit variation in class size created by a maximum class size rule. Smaller classes in the last three years of primary school (age 10 to 13) are beneficial for cognitive and non-cognitive ability at age 13, and improve achievement at age 16. Most importantly, we find that smaller classes have positive effects on completed education, wages, and earnings at age 27 to 42. The estimated wage effect is much larger than any imputed estimate of the wage effect, and is large enough to pass a cost-benefit test. |
| Keywords: | Class size; regression discontinuity; cognitive skills; non-cognitive skills; educational attainment; earnings |
| JEL: | C31 I21 I28 J24 |
| Date: | 2012–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2012_0008&r=lab |
| By: | Chin, Aimee (University of Houston); Daysal, N. Meltem (Tilburg University); Imberman, Scott A. (Michigan State University) |
| Abstract: | Texas requires a school district to offer bilingual education when its enrollment of limited English proficient (LEP) students in a particular elementary grade and language is twenty or higher. Using school panel data, we find a significant increase in the probability that a district offers bilingual education above this 20-student cutoff. Using this discontinuity as an instrument for district bilingual education provision, we find that bilingual education programs do not significantly impact the standardized test scores of students with Spanish as their home language (comprised primarily of ever-LEP students). However, there are significant positive spillover effects to their non-LEP peers. |
| Keywords: | bilingual education |
| JEL: | I21 J24 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6694&r=lab |
| By: | Stijn BAERT (Ghent University, Department of Social Economics); Bart COCKX (Ghent University (Department of Social Economics), Université catholique de Louvain (IRES), CESIfo and IZA); Dieter VERHAEST (Hogeschool-Universiteit Brussel (Human Relations Research Group) and Ghent University (Department of Social Economics)) |
| Abstract: | This study investigates whether young unemployed graduates who accept a job below their level of education accelerate or delay the transition into a job that matches their level of education. We adopt the Timing of Events approach to identify this dynamic treatment effect using monthly calendar data from a representative sample of Flemish (Belgian) youth who started searching for a job right after leaving formal education. We find that overeducation is a trap. This trap is especially important early in the unemployment spell. Our results are robust across various specifications and for two overeducation measures. |
| Keywords: | overqualification, underemployment, school-to-work transitions, duration analysis, dynamic treatment |
| JEL: | C21 C41 I21 J24 J64 |
| Date: | 2012–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2012012&r=lab |
| By: | Mumford, Karen A. (University of York); Smith, Peter N. (University of York) |
| Abstract: | We explore the relationship between reported job satisfaction and own wage, relative wage and average comparison group wage; allowing for asymmetry in these responses across genders. We find that the choice of relevant comparison group is affected by gender in Britain; men display behaviour characteristic of competitiveness whilst women do not. |
| Keywords: | job satisfaction, earnings, gender, segregation, workplace |
| JEL: | J3 J7 J28 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6673&r=lab |
| By: | Duleep, Harriet (College of William and Mary) |
| Abstract: | This paper presents and tests a model that may partially explain why the demand for labor adapts to the availability of labor. In particular, I postulate that the cost of hiring declines with increases in the amount of labor available. The cost of hiring would decrease with a growth in available labor for two reasons: (1) individuals seeking employment would be coming to employers instead of the latter seeking them out and (2) the larger set of potential employees would increase the probability of employers finding individuals suitable for unfilled jobs. Moreover, individuals seeking employment may engender employers to think of new ways in which labor can be used. An increase in the number of entrants to the labor force would lower the cost of hiring and increase employment demand at any given wage rate. Hence, a change in the labor force – such as the addition of women or immigrants – does not increase unemployment as much as is predicted for current workers because demand for labor increases as the cost of hiring decreases. The paper may provide some insight into the relationship between the size of the labor force and employment demand as recently highlighted by Stock and Watson in their examination of the 2007-2009 recession. |
| Keywords: | labor demand, labor supply, cost of hiring |
| JEL: | J23 J21 J11 J32 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6686&r=lab |
| By: | Marianna Kudlyak; Felipe Schwartzman |
| Abstract: | We conduct an accounting exercise of the role of worker flows between unemployment, employment, and labor force nonparticipation in the dynamics of the aggregate unemployment rate across four recent recessions: 1982-1983, 1990-1991, 2001, and 2007-2009 (the "Great Recession"). We show that, whereas during earlier recessions it was sufficient to examine the flows between employment and unemployment to account for the dynamics of the unemployment rate, this was not true in the Great Recession. The increased importance of the flows between nonparticipation and unemployment is documented across all age and gender groups. |
| Keywords: | Business cycles ; Unemployment ; Labor market |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:12-04&r=lab |
| By: | Chletsos, Michael; Roupakias, Stelios |
| Abstract: | Abstract: This paper applies the Blinder-Oaxaca methodology in order to decompose the average earnings differentials between Greek workers and different groups of immigrants. We use information about 8,429 individuals of which 1,185 are immigrants. The data are drawn from the Greek Labor Force Survey (2009). The main objective is to explore how much of the differential is explained by differences in observed characteristics. We also investigate the effect that assimilation has on the immigrants’ earnings. Our results provide empirical evidence that the part of the wage gap due to differences in the coefficients is largest for immigrants originating from non-EU countries and negative for those immigrants who terminated education in Greece. |
| Keywords: | immigration; discrimination; assimilation |
| JEL: | J71 J61 |
| Date: | 2012–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39862&r=lab |
| By: | Doorley, Karina (University College Dublin); Sierminska, Eva (CEPS/INSTEAD) |
| Abstract: | We apply an innovative technique to allow for differential effects of physical appearance and self-confidence across the wage distribution, as traditional methods can confound opposing effects at either end of the wage distribution. Comparing the effects of beauty and confidence measures in two countries (Germany and Luxembourg), we find that wages are more driven by looks than self-esteem. Counterfactual wage distributions, constructed using distribution regression, show a beauty premium for women at the bottom of the wage distribution. However, most of this is explained by the fact that attractive women have better labor market attributes than their unattractive counterparts. We find a large wage premium for attractive men throughout the wage distribution which is largely unexplained by labor market attributes. There is a small wage penalty for self-confident individuals, particularly men, although their labor market characteristics are generally better than their less confident counterparts. We show that the difference in characteristics between beautiful and plain people contributes to the beauty premium identified using traditional models, particularly for women. Isolating the characteristic effect from the unexplained effect of beauty on wages leads to smaller beauty premium for women. |
| Keywords: | wages, distribution, physical appearance, discrimination |
| JEL: | D31 J24 J30 J70 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6674&r=lab |
| By: | Machin Stephen; Marie Olivier; Vujić Sunčica (ROA rm) |
| Abstract: | We present new evidence on the causal impact of education on crime, by consideringa large expansion of the UK post-compulsory education system that occurred in thelate 1980s and early 1990s. The education expansion raised education levels acrossthe whole education distribution and, in particular for our analysis, at the bottom endenabling us to develop an instrumental variable strategy to study the crime-educationrelationship. At the same time as the education expansion, youth crime fell, revealinga significant cross-cohort relationship between crime and education. The causalcrime reducing effect of education is estimated to be negative and significant, andconsiderably bigger in (absolute) magnitude than ordinary least squares estimates.The education boost also significantly impacted other productivity related economicvariables (qualification attainment and wages), demonstrating that the incapacitationeffect of additional time spent in school is not the sole driver of the results. |
| Keywords: | labour market entry and occupational careers; |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umaror:2012009&r=lab |
| By: | Cristobal Huneeus; Silvia Leiva; Alejandro Micco |
| Abstract: | Unemployment is a pressing problem in many countries in Latin America. Financial crises and increased globalization increase job turnover and therefore the risk of unemployment. To protect workers, Chile implemented an innovative unemployment insurance (UI) system. UI protects workers but creates moral hazard and self-selection issues. Using administrative data for the period 2007 to 2010, the effect of the 2009 reform of UI on job search behavior was studied. The results revealed different job search behavior between workers who use unemployment benefits and those who do not. Search efforts were found to fall as long as unemployment benefits are in place. There is strong evidence that workers who decide not to take UI despite having the right to do so have a higher probability of finding a new job. |
| JEL: | E24 J64 J65 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4784&r=lab |
| By: | Marianna Kudlyak; Damba Lkhagvasuren; Roman Sysuyev |
| Abstract: | We use novel high-frequency panel data on individuals' job applications from an online job posting engine to study (1) whether at the beginning of search job seekers with different levels of education (skill) apply to different jobs, and (2) how search behavior changes as search continues. First, we find that there is sorting by skill at the beginning of search. Second, as search continues, job seekers apply to different types of jobs than at the beginning of search. In particular, assuming that sorting at the beginning of search is positive, as search continues there is less sorting by education and job seekers, on average, apply to lower quality jobs. |
| Keywords: | Business cycles ; Monetary policy ; Labor market |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:12-03&r=lab |
| By: | Hasan Tekguc (Mardin Artuklu Univeristy; Izmir University of Economics) |
| Abstract: | This paper examines the importance of gender on different job mobility patterns using an extensive household survey data from İzmir, third largest city in Turkey. The determinants of job-to-job and job-to-non-employment transitions are analyzed with the help of a multinomial logit estimation method. The results indicate that there is a distinction regarding the probability of job mobility patterns based on gender. It is more likely for women to be engaged in job-to-non-employment transition, whereas men tend to switch jobs more often. Although gender plays a significant role regarding job mobility patterns, traditionally imposed social constraints associated with childcare and household duties provide us with mixed results considering the behavior of women in the job market. On the other hand, having high-paid and secure jobs decreases the probability of both patterns of job mobility. |
| Keywords: | job-mobility, Turkey, gender |
| JEL: | J62 J16 J60 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:mrd:martwp:2012-01&r=lab |
| By: | Chletsos, Michael; Roupakias, Stelios |
| Abstract: | This paper applies the “spatial correlations” methodology in order to investigate the impact of immigrants on the labor market performance of natives. We use information on 13 local labor markets for the period 1988-2008. The data are drawn from the Greek Labor Force Survey. We address the endogeneity of immigrants’ location choices by using an instrumental variables methodology. Our results provide empirical evidence that immigrants do not displace the indigenous workers. Also, there is evidence that: (i) medium skilled unemployment declines with immigration and (ii) labor force participation rises due to immigration. |
| Keywords: | immigration; unemployment; participation |
| JEL: | E24 J61 |
| Date: | 2012–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39872&r=lab |
| By: | Krause, Annabelle (IZA); Rinne, Ulf (IZA); Schüller, Simone (IZA) |
| Abstract: | We investigate second generation migrants and native children at several stages in the German education system to analyze the determinants of the persistent native-migrant gap. One part of the gap can be attributed to differences in socioeconomic background and another part remains unexplained. Faced with this decomposition problem, we apply linear and matching decomposition methods. Accounting for differences in socioeconomic background, we find that migrant pupils are just as likely to receive recommendations for or to enroll at any secondary school type as native children. Comparable natives, in terms of family background, thus face similar difficulties as migrant children. Our results point at more general inequalities in secondary schooling in Germany which are not migrant-specific. |
| Keywords: | migration, education, human capital, Germany, tracking |
| JEL: | J15 J24 I21 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6696&r=lab |
| By: | Thomas BAUDIN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Université de Lille 3); David de la CROIX (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et sociale (IRES) and Center for Operations Research and Econometrics (CORE)); Paula GOBBI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | Among possible lifestyles, the DINKs (“double income no kids”) are couples choosing to be childless, while the DEWKs (“dually employed with kids”) are couples with children. We develop a theory of marriage and parenthood decisions, where we distinguish the choice to have children from the choice of the number of children. The deep parameters of the model are identified from the 1990 US Census. The quantitative model allows us to measure voluntary and involuntary childlessness from the data, and to understand (1) why single women are more likely to be childless than married women but, when mothers, their fertility is close to that of married mothers; (2) why childlessness exhibits a U-shaped relationship with education for both single and married women; and (3) why there is a hump-shaped relationship between marriage rates and education levels. We show how family patterns have been shaped over time by the rise in education levels and wage inequality, and by the shrinking gender wage gap. |
| Keywords: | Fertility, Childlessness, Marriage, Education, Structural Estimation |
| JEL: | J11 O11 O40 |
| Date: | 2012–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2012013&r=lab |
| By: | Machin Stephen; Marie Olivier; Vujić Sunčica (METEOR) |
| Abstract: | We present new evidence on the causal impact of education on crime, by considering a largeexpansion of the UK post-compulsory education system that occurred in the late 1980s and early1990s. The education expansion raised education levels across the whole education distributionand, in particular for our analysis, at the bottom end enabling us to develop an instrumentalvariable strategy to study the crime-education relationship. At the same time as the educationexpansion, youth crime fell, revealing a significant cross-cohort relationship between crime andeducation. The causal crime reducing effect of education is estimated to be negative andsignificant, and considerably bigger in (absolute) magnitude than ordinary least squaresestimates. The education boost also significantly impacted other productivity related economicvariables (qualification attainment and wages), demonstrating that the incapacitation effect ofadditional time spent in school is not the sole driver of the results. |
| Keywords: | public economics ; |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamet:2012037&r=lab |
| By: | Böhlmark, Anders (SOFI, Stockholm University); Lindahl, Mikael (Uppsala University) |
| Abstract: | This paper evaluates average educational performance effects of an expanding independent-school sector at the compulsory level by assessing a radical voucher reform that was implemented in Sweden in 1992. Starting from a situation where all public schools were essentially local monopolists, the degree of independent schools has developed very differently across municipalities over time as a result of this reform. We regress the change in educational performance outcomes on the increase in the share of independent-school students between Swedish municipalities. We find that an increase in the share of independent-school students improves average performance at the end of compulsory school as well as long-run educational outcomes. We show that these effects are very robust with respect to a number of potential issues, such as grade inflation and pre-reform trends. However, for most outcomes, we do not detect positive and statistically significant effects until approximately a decade after the reform. This is notable, but not surprising given that it took time for independent schools to become more than a marginal phenomenon in Sweden. We do not find positive effects on school expenditures. Hence, the educational performance effects are interpretable as positive effects on school productivity. We further find that the average effects primarily are due to external effects (e.g., school competition), and not that independent-school students gain significantly more than public-school students. |
| Keywords: | school choice, independent schools, educational performance, external effects |
| JEL: | I2 H4 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6683&r=lab |
| By: | Pothier, David |
| Abstract: | We study a model of occupational choice where workers must rely on their social contacts to acquire job vacancy information. Contrary to the existing literature, we allow for worker heterogeneity in terms of their idiosyncratic skill-types. In this case, the allocation of talent (the matching of skills to tasks) becomes a welfare-relevant consideration. A worker’s skill-type determines both his relative cost of specialising in different occupations and his productivity on the job. The model shows that relying on word-of-mouth communication for job search generates both positive externalities (due to improved labour market matching) and negative externalities (due to a poor allocation of talent). Which effect dominates depends on the prop- erties of the job search and productivity functions. Taking into account worker heterogeneity shows that the degree of occupational segregation in competitive labour markets is generally not efficient. |
| Keywords: | Labour Markets; Social Networks |
| JEL: | J01 Z13 J70 |
| Date: | 2012–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39895&r=lab |
| By: | Marianna Cervena (National Bank of Slovakia, Research Department) |
| Abstract: | Building on a unique survey of how Slovak firms adjust wages and prices, this paper studies the extent to which Slovak wages are rigid and the determinants for both nominal and real wage rigidity. Compared to other countries included in the survey, Slovakia has nominal base wage rigidity that is one of the highest and real base wage rigidity that is also relatively high. Apart from looking at the anecdotal evidence, I run multinomial logit regressions to capture the relationship between real wage rigidity, nominal wage rigidity, flexible wages and a number of firm-specific and institutional characteristics. Regression results suggest that the prevalent skill-level of the workforce matters: firms with mainly low-skilled blue-collar workers face lower probabilities of wage rigidities than firms with white-collar workers. Collective bargaining coverage is also a significant determinant. Firms covered by firm-level unions face higher probabilities of both types of wage rigidities compared to firms not covered by any level of collective bargaining. On the other hand, firms facing sectoral level unions have more flexible wages than those without any collective bargaining. |
| Keywords: | nominal and real wage rigidity, survey evidence |
| JEL: | J30 J50 E24 C81 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:svk:wpaper:1018&r=lab |
| By: | Usui, Emiko |
| Abstract: | This paper develops an equilibrium search model to explain gender asymmetry in occupational distribution. Workers’ utility depends on salary and working hours, and women have a greater aversion to market hours than men. Simulations indicate that women crowd into shorter-hour, lower-paying jobs than men. If employers discriminate against women, offers are tailored more toward men’s preferences; employers require longer working hours, and fewer women work at these jobs. Similarly, if women have a disutility factor in their utility toward positions with a higher proportion of men, fewer women work at these jobs. In both cases, gender segregation is reinforced |
| Keywords: | Equilibrium Search, Gender preferences, Employer discrimination, Employee discrimination |
| JEL: | E24 J16 J64 J71 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:560&r=lab |
| By: | Stéphane Bonhomme (CEMFI); Laura Hospido (Banco de España) |
| Abstract: | We use detailed information on labor earnings and employment from Social Security records to document earnings inequality in Spain from 1988 to 2010. Male earnings inequality was strongly countercyclical: it increased around the 1993 recession, showed a substantial decrease during the 1997-2007 expansion and then a sharp increase during the recent recession. These developments were partly driven by the cyclicality of employment and earnings in the lower-middle part of the distribution. We emphasize the importance of the housing boom and subsequent housing bust, and show that demand shocks in the construction sector significantly impacted aggregate labor market outcomes |
| Keywords: | Earnings inequality, social security data, unemployment, business cycle |
| JEL: | D31 J21 J31 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1225&r=lab |
| By: | Marianna Cervena (Building on a unique survey of how Slovak firms adjust wages and prices, this paper studies the reduction of labour costs in two forms: base wage cuts and alternative margins for labour cost reduction. Anecdotal evidence suggests that wage-cutting by firms occurs more frequently in Slovakia than in any other country and that the use of alternative margins for labour cost reduction is also quite prevalent in Slovakia. Regression results support the strong relationship between the use of alternative margins and wage rigidities. I find that the use of any alternative margin is on average 30% more likely in firms facing nominal wage rigidity that in firms with flexible wages.) |
| Keywords: | nominal and real wage rigidity, alternative margins for labour cost cutting, survey evidence |
| JEL: | J30 J50 E24 C81 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:svk:wpaper:1019&r=lab |
| By: | Johnston, David W. (Monash University); Lee, Wang-Sheng (Deakin University) |
| Abstract: | Promotions ordinarily involve higher wages and greater privileges; but they also often involve increased responsibility, accountability and work hours. Therefore, whether promotions are good for workers' wellbeing is an empirical question. Using high-quality panel data we estimate pre- and post-promotion effects on job attributes, physical health, mental health and life satisfaction, in an attempt at answering this question. We find that promotions substantially improve job security, pay perceptions and overall job satisfaction in the short term, and that promotions have short and longer term effects on job control, job stress, income and hours worked. However, despite these large effects on job attributes, we find that promotions have negligible effects on workers' health and happiness. Only mental health seems affected, with estimates suggesting significant deterioration two years after receiving a promotion. Thus, it seems the additional stress involved with promotions eventually outweighs the additional status, at least for the average worker. |
| Keywords: | promotion, status, stress, job satisfaction |
| JEL: | I0 I31 J62 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6675&r=lab |
| By: | Ritzen, Jo (IZA and Maastricht University) |
| Abstract: | Higher education is in the position to save Europe by rendering a substantial contribution to sustainable economic growth. For that purpose higher education must strengthen its innovative power in entrepreneurship education and by focusing research more on societal problems, while being better empowered and enabled by Governments. Universities must show leadership in resolving or channeling the major societal questions. More European competition between universities in education and research would be helpful. Universities can contribute to recreating hope and optimism through more innovation in the economy. |
| Keywords: | hope, attitudes, Europe, economic growth, higher education, labor market, innovation, competition |
| JEL: | D31 F55 I22 I23 I24 I25 I28 J24 O31 O47 O52 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp44&r=lab |
| By: | Cid, Alejandro |
| Abstract: | Most discussion of after-school programs in shanty towns has focused on estimating their average effects. The results of these programs are inconclusive and the explanation may be that the effects are heterogeneous. In this paper, we study the influence of how heterogeneity in the type of parents involved in the program affects the performance of their children at school. We measure performance at school according to academic achievement, behavior and grade retention. In line with previous literature, we employ the number of books at home as a proxy for parent type. By using random assignment to evaluate an after-school program in a developing-country shanty town, we find that it is effective in raising children’s school achievement for those with a committed parent type. Thus, this paper provides evidence that the knowledge of the distribution of effects is crucial to guiding public policy and it is not enough just to change the environment in which young people spend their after school hours, increasing time in safe, supervised settings, it is also necessary to take parenting type into account. |
| Keywords: | after-school; education; impact evaluation; randomized experiment |
| JEL: | I21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39918&r=lab |
| By: | Wrede, Matthias |
| Abstract: | Combining a spatial equilibrium model with a search-matching unemployment model, this paper analyzes the willingness to pay for regional amenities and the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. The results are compared with those obtained from the Rosen-Roback approach. Furthermore, the paper shows that the wage curve is negatively sloped for quasi-linear utility. Specifically, the wage rate increases and the unemployment ratio decreases in response to an increase in the amenity level if the amenity is marginally more beneficial to producers than to consumers. As an illustration of the unemployment-adjusted quality-of-life measure, the quality of life in West German counties is estimated. -- |
| Keywords: | quality of life,residential mobility,unemployment,job search,matching |
| JEL: | R12 R13 R14 H73 J61 J64 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:012012r&r=lab |
| By: | Eriksson, Stefan (Uppsala University); Johansson, Per (IFAU); Langenskiöld, Sophie (IFAU) |
| Abstract: | We study the recruitment behavior of Swedish employers using data from a stated choice experiment. In the experiment, the employers are first asked to describe an employee who recently and voluntarily left the firm, and then to choose between two hypothetical applicants to invite to a job interview or to hire as a replacement for their previous employee. The two applicants differ with respect to characteristics such as gender, age, education, experience, ethnicity, religious beliefs, family situation, weight, and health. Our results show that employers discriminate against applicants who are old, non-European, Muslim, Jewish, obese, have several children, or have a history of sickness absence. Moreover, increasing the firms' cost of uncertainty in hiring – through more firm co-payment in the sickness benefit system – may reduce hiring, but does not affect the degree of discrimination. Also, there are only small differences in the degree of discrimination between different types of recruiters and firms. Overall, our results suggest that the discrimination, at least partially, should reflect statistical discrimination. |
| Keywords: | stated choice experiment, discrimination, gender, age, ethnicity, obesity, sickness absence |
| JEL: | J71 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6691&r=lab |
| By: | Andersson Joona, Pernilla (SOFI, Stockholm University); Datta Gupta, Nabanita (University of Aarhus); Wadensjö, Eskil (Stockholm University) |
| Abstract: | The utilization and reward of the human capital of immigrants in the labor market of the host country has been studied extensively. In the Swedish context this question is of great policy relevance due to the high levels of refugee migration and inflow of tied movers. Using Swedish register data covering the period 2001-2008, we analyze the incidence and wage effects of overeducation among non-Western immigrants. We also analyze whether there is state-dependence in overeducation and extend the immigrant educational mismatch literature by investigating whether this is a more severe problem among immigrants than among natives. In line with previous research we find that the incidence of overeducation is higher among immigrants and the return to overeducation is lower indicating that immigrants lose more from being overeducated. We find a high degree of state-dependence in overeducation both among natives and immigrants, but to a higher extent among immigrants. |
| Keywords: | educational mismatch, immigrants, wages, state-dependence |
| JEL: | J61 I21 J24 J31 F22 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6695&r=lab |
| By: | Mansour, Hani (University of Colorado Denver); McKinnish, Terra (University of Colorado, Boulder) |
| Abstract: | In direct contrast to conventional wisdom and most economic models of gender differences in age of marriage, we present robust evidence that men and women who are married to differently-aged spouses are negatively selected. Earnings analysis of married couples in the 1960, 1970, 1980, 1990 and 2000 Decennial Censuses finds that male earnings decrease with within-couple age difference, regardless of whether the man is older or younger than his wife. In contrast, female earnings increase with within-couple age difference, but this is due to the fact that women with differently-aged spouses work more hours not because they command higher wages. We test for negative selection into differently-aged couples using three measures: average earnings per hour in occupation using Census data, cognitive skills assessments from the National Longitudinal Survey of Youth 1979 cohort (NLSY79), and measures of physical appearance from the National Longitudinal Study of Adolescent Health (Add Health). The point estimates indicate negative selection on all of these characteristics, although statistical significance varies by outcome and sample. |
| Keywords: | marriage markets, age difference, selection |
| JEL: | J12 J16 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6678&r=lab |
| By: | Cid, Alejandro; Stokes, Charles |
| Abstract: | As the developed world has experienced a shift away from the traditional two-biological parent family, scholars have sought to understand how children are faring in non-traditional homes. Debate has arisen over assertions that children from non-traditional families do less well in school. Concerns about selection issues as well as a paucity of cross-cultural evidence, have led some scholars to question the influence of family structure on educational attainment. Using data from the 2006 Uruguayan household survey, we evaluate the relationship of family structure with children’s education using two different methods to deal with selection problems, an instrumental variables approach and propensity score matching. Both approaches yield evidence that growing up in non-traditional family structures seems to be negative related with the schooling of Uruguayan boys, with more muted results for girls. Interestingly, Uruguay is a developing country with two peculiarities, that is, a culture that experienced fairly rapid modernization in terms of institutions –including family transition-, especially compared with other South American nations, and meanwhile an intriguing high level of school drop-out, unusually high for Uruguay’s overall level of development. |
| Keywords: | academic achievement; family structure; instrumental variables; propensity score; selection effects |
| JEL: | J12 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39914&r=lab |
| By: | Jeanne Lafortune |
| Abstract: | This paper explores how a rise in a gender’s scarcity may impact educational investments using exogenous variation in the marriage market of second generation Americans in early 20th century. Theoretically, one may expect this to occur through two potential channels: a change in matching possibilities or in post-match bargaining. Empirically, I find that worse marriage market conditions spurs higher pre-marital investments: the effect for males is significant (0.2 years of education for one standard deviation in the sex ratio) while for females, it is only observed in highly endogamous groups. When faced with an exogenously larger number of males per females, males’ marriages appear to be less stable and more likely to involve natives and more educated spouses while women are less likely to work and, for those in high endogamous groups, marry more immigrants. |
| Keywords: | Pre-marital investments, Sex ratios, Marriage market |
| JEL: | J12 J24 J61 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:422&r=lab |
| By: | Cid, Alejandro; Balsa, Ana |
| Abstract: | Using a randomized trial, we evaluate the impact of a free privately-managed middle school in a poor neighborhood. The research compares over time adolescents randomly selected to enter Liceo-Jubilar and those that were not drawn in the lottery. Besides positive impacts on expectations, we find better educational outcomes in the treatment group relative to control subjects. The features of Liceo-Jubilar -autonomy of management, capacity for innovation, and adaptation to the context- contrast with the Uruguayan highly centralized and inflexible public education system. Our results shed light on new approaches to education that may contribute to improve opportunities for disadvantaged adolescents in developing countries. Unlike the experiences of charter schools in developed countries, Liceo-Jubilar does not have autonomy regarding the formal school curricula nor depends on public funding by any means. |
| Keywords: | Education; Field Experiment; Poverty; Impact Evaluation |
| JEL: | I21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39913&r=lab |
| By: | Stancanelli, Elena G. F. (CNRS); van Soest, Arthur (Tilburg University) |
| Abstract: | In the scant literature on partners' joint retirement decisions one of the explanations for joint retirement is externalities in leisure. In this study, we investigate how retirement affects the hours of leisure together of individuals in a couple. Exploiting the law on retirement age in France, we use a regression discontinuity approach to identify the causal effect of retirement on hours of leisure separate and together of individuals in a couple. We find that the retirement probability increases significantly at age 60 for both partners, supporting our identification strategy. We conclude that retirement of the husband significantly increases own hours of leisure of the husband but it does not increase joint leisure hours of the couple. Retirement of the wife increases joint leisure. This asymmetry in responses is well in line with recent literature on joint retirement and suggests that leisure complementarities may not be the main engine of joint retirement. |
| Keywords: | leisure, ageing, retirement, regression discontinuity |
| JEL: | D13 J22 J14 C1 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6698&r=lab |
| By: | Kar-Fai Gee; Andrew Sharpe |
| Abstract: | The objective of this report is to examine Aboriginal labour market performance in Canada from 2007 to 2011 using data from the Labour Force Survey, which excludes people living on-reserve or in the territories. This is performed by first providing an overview of how the recession affected the Canadian labour market, followed by a Canada-wide portrait of the Aboriginal labour market in 2011. The Aboriginal labour market performance from 2007 to 2011 is then compared to the rest of the labour force on a national level, before being broken down by province and main heritage group. Using this information, the report then discusses the implications of future labour market developments for Aboriginal Canadians and for the labour market policies and programs that support their labour market performance. |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:sls:resrep:1204&r=lab |
| By: | Drydakis, Nick (University of Patras) |
| Abstract: | Sexual orientation and employment bias is examined in Cyprus (Republic of Cyprus: Nicosia, Limassol, Larnaca, Paphos) by implementing an experiment for the period 2010-2011. The design is aimed at answering three main questions: Do gay and lesbian people face occupational access constraints and entry wage bias than comparable heterosexuals? Do gay and lesbian people benefit from providing more job-related information? Does the differential treatment between gay/lesbian and heterosexual applicants disappear as the information of the applicants increases? Methodologically, we sent applications to advertised vacancies and we experimented with two information sets the 'sexual orientation' and 'information' of the potential applicants. The estimations suggest that gay and lesbian applicants face significant bias than heterosexual applicants. Moreover, both heterosexual and gay/lesbian applicants gain by providing more job-related information. However, the estimations suggest that the informational premium for sexual orientation minorities could not reduce the discriminatory patterns. The current results indicate that discrimination against sexual orientation minorities in the Cypriot labour market is a matter of preference, not the result of limited information. One strategy the Cypriot government may employ is to try to affect public opinion and people's attitudes towards sexual orientation minorities. This is the first nationwide field experiment in the Cypriot labour market and contributes to the literature as it is the first field study on sexual orientation which tries to disentangle statistical from taste-based discrimination in the labour market. |
| Keywords: | sexual orientation, hiring discrimination, entry wage offers, taste theory of discrimination, statistical theory of discrimination |
| JEL: | C93 J7 J82 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6684&r=lab |
| By: | Dauth, Wolfgang (Institute for Employment Research (IAB), Nuremberg); Findeisen, Sebastian (University of Zurich); Suedekum, Jens (University of Duisburg-Essen) |
| Abstract: | We analyze the effects of the unprecedented rise in trade between Germany and "the East" – China and Eastern Europe – in the period 1988–2008 on German local labor markets. Using detailed administrative data, we exploit the cross-regional variation in initial industry structures and use trade flows of other high-income countries as instruments for regional import and export exposure. We find that the rise of "the East" in the world economy caused substantial job losses in German regions specialized in import-competing industries, both in manufacturing and beyond. Regions specialized in export-oriented industries, however, experienced even stronger employment gains and lower unemployment. In the aggregate, we estimate that this trade integration has caused some 493,000 additional jobs in the economy and contributed to retaining the manufacturing sector in Germany. We also conduct our analysis at the individual worker level, and find that trade had a stabilizing overall effect on employment relationships. |
| Keywords: | international trade, import competition, export opportunities, local labor markets, employment, China, Eastern Europe, Germany |
| JEL: | F16 J31 R11 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6685&r=lab |
| By: | Wagstaff, Adam; Manachotphong, Wanwiphang |
| Abstract: | This paper explores the possibility that universal health coverage may inadvertently result in distorted labor market choices, with workers preferring informal employment over formal employment, leading to negative effects on investment and growth, as well as reduced protection against non-health risks and the income risks associated with ill health. It explores this hypothesis in the context of the Thai universal coverage scheme, which was rolled out in four waves over a 12-month period starting in April 2001. It identifies the effects of universal coverage through the staggered rollout, and gains statistical power by using no less than 68 consecutive labor force surveys, each containing an average of 62,000 respondents. The analysis finds that universal coverage appears to have encouraged employment especially among married women, to have reduced formal-sector employment among married men but not among other groups, and to have increased informal-sector employment especially among married women. The largest positive informal-sector employment effects are found in the agricultural sector. |
| Keywords: | Health Monitoring&Evaluation,Labor Markets,Population Policies,Labor Policies,Access to Finance |
| Date: | 2012–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6116&r=lab |
| By: | Antonio Falato; Dan Li; Todd Milbourn |
| Abstract: | Competitive sorting models of the CEO labor market (e.g., Edmans, Gabaix and Landier (2009)) predict that differences in CEO productive abilities, or "talent", should be an important determinant of CEO pay. However, measuring CEO talent empirically represents a major challenge. In this paper, we document reliable evidence of pay for CEO credentials and argue that the evidence is consistent with models of the CEO labor market. Our main finding is that boards' compensation decisions reward several reputational, career, and educational credentials of CEOs, with newly-appointed CEOs earning a 5 percent ($280,000) total pay premium for each decile improvement in the distribution of these credentials. Consistent with boards using credentials as publicly-observable signals of CEO abilities, we show that pay for credentials displays key cross-sectional features predicted by theory, such as convexity in credentials and complementarity with firm size. Our main finding is robust to a battery of identification tests that address selectivity and endogeneity concerns, including instrumental variables estimates and controlling for firm and CEO fixed effects. We also show that credentials capture variation in CEO human capital that is different from lifetime work experience, and are positively related to long-term firm performance and board monitoring, which helps to distinguish our results from alternative stories based on CEO general human capital, hype, and entrenchment. Overall, our findings suggest that sorting considerations in the CEO labor market are an important determinant of CEO pay. Our results also suggest that the rise in CEO pay over the last decades may owe at least in part to a rise in the CEO talent premium. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2012-39&r=lab |
| By: | Nicola Branson (SALDRU, School of Economics, University of Cape Town); David Lam (University of Michigan); Linda Zuze |
| Abstract: | Education is a major focus of attention in the National Income Dynamics Study (NIDS). With the release of Wave 2 NIDS provides the first longitudinal data ever collected on education in a national household survey in South Africa. This makes it possible to study transitions in and out of school and transitions across grades in ways that have never before been possible. This report analyzes NIDS Wave 1 and 2 data corresponding to the sections of the questionnaires that are most specifically related to education –Module C of the child questionnaire, Module H of the adult questionnaire, and Module E of the proxy questionnaire. While many of the questions in these modules are similar to questions on other national surveys, tracking the same individuals across time allows us to identify changes over time while controlling for individual level characteristics. NIDS collects schooling information at each wave and for intermediate years. As such, by wave 2 there is information on the respondent's grade and enrolment status for each year 2007 (the year before Wave 1) through 2010 (the year of Wave 2). In addition, the outcome for each year 2007 through 2009 is collected. |
| Keywords: | Nids Data |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:81&r=lab |
| By: | Paul Cichello; Murray Leibbrandt (SALDRU, School of Economics, University of Cape Town); Ingrid Woolard (SALDRU, School of Economics, University of Cape Town) |
| Abstract: | This paper provides a brief summary of key labour market outcomes in Wave 2 of NIDS and also examines labour market transitions that occurred between Wave 1 and Wave 2. This corresponds approximately to changes between 2008 and 2010. The primary purpose of this paper is to spur discussion of these initial findings and to encourage more detailed analytical work on the labour market using the NIDS data. |
| Keywords: | Nids Data |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:78&r=lab |
| By: | Cid, Alejandro; Cabrera, José María |
| Abstract: | We evaluate the impact of joint-liability incentives in the classroom using a randomized field experiment. The instructor design groups of three students in the classroom and provides a premium to their homework's grade only if all three members of the group accomplish some requirements. To isolate the joint liability effect from selfish motivations, we design also an individual incentives treatment. We find that joint-liability incentives impact positively on the grades accomplished in homework and midterm exams both in the experimental courses and in the other courses taken by the students in the semester. Though the positive average effect seems to disappear in the final exams, the overall impact of joint-liability incentives on the academic achievements in the semester is still positive. A drawback of this program is a decrease in the satisfaction with classmates. The significant effectiveness of the peer monitoring developed by the joint liability of group incentives provides novel implications for the design of the grading policies in the classroom and for other social settings where incentives may be based in peer monitoring or joint liability. |
| Keywords: | field experiment; randomization; education; joint liability; student incentives |
| JEL: | I20 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39907&r=lab |
| By: | Jaime Andres Sarmiento Espinel (El Colegio de México) |
| Abstract: | The collective model of household behavior is extended to consider the existence of public consumption, like expenditures on children, together with the possibility of non-participation in the labor market of one partner of the adult couple. This model argues that structural elements of the decision process, such as individual preferences and the intra-household distribution rule of non-public expenditure, can be identified by observing labor supply of each individual and total expenditures on the public good. The identification rests on the existence of a variable that affects household behavior only through its impact on the decision process, i.e. a distribution factor, and the existence and uniqueness of a reservation wage for each household member at which both members are indifferent to whether a member participates or not. This setting provides a conceptual framework for addressing issues related to the impact of the potential wage of a non-participating member on household allocations and the targeting of specific benefits or taxes. |
| Keywords: | collective household models, children, labor supply, non-participation |
| JEL: | D11 J13 J22 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:emx:ceedoc:2012-14&r=lab |
| By: | Tine Louise Mundbjerg Eriksen (Department of Economics and Business, Aarhus University, Denmark); Helena Skyt Nielsen (Department of Economics and Business, Aarhus University, Denmark); Marianne Simonsen (Department of Economics and Business, Aarhus University, Denmark) |
| Abstract: | Bullying is a widespread social phenomenon. We show that both children who are being bullied and children who bully suffer in terms of long-term outcomes. We rely on rich survey and register-based data for children born in a region of Denmark during 1990-1992, which allows us to carefully consider possible confounders. Evidence from a number of identification strategies suggests that the relationship is causal. Besides the direct effect bullying may have on the child in the longer run, we show that an additional mechanism can arise through teacher perceptions of short-run abilities and behavior. |
| Keywords: | Victim, Perpetrator, Antisocial Behavior, Crime, Education, Mental Health |
| JEL: | I14 I21 |
| Date: | 2012–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2012-16&r=lab |
| By: | Miquel Pellicer (SALDRU, School of Economics, University of Cape Town); Vimal Ranchhod (SALDRU, School of Economics, University of Cape Town) |
| Abstract: | We consider the interaction between human capital accumulation and inequality in South Africa. We start by discussing three alternative theoretical frameworks that relate inequality and investment decisions in post-secondary education; namely the 'perfect credit markets hypothesis', the 'imperfect credit markets hypothesis' and the 'social externalities hypothesis'. Each of these suggests different policy implications. We then consider which of these seems to have the most validity in the South African context, by presenting some original analysis as well as considering some of the related literature. Our findings suggest that South Africa is indeed in an 'inequality trap' situation and that credit markets do not work well. There is some evidence that social externalities compound the effects of the imperfect credit markets. We conclude with a discussion of possible policy directions. These include information on eligibility to tertiary institutes of education, awareness campaigns regarding public financing options, subsidization of application and registration fees and efforts to improve school quality at the primary and secondary levels. |
| Keywords: | Nids Data |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:86&r=lab |
| By: | Orrenius, Pia M. (Federal Reserve Bank of Dallas); Zavodny, Madeline (Agnes Scott College) |
| Abstract: | This chapter reviews the economics literature on immigrant-native differentials in occupational risk. It begins by briefly explaining the theory of compensating wage differentials. It then provides a more detailed discussion of the empirical evidence on the subject, which reaches several conclusions. First, immigrants are overrepresented in occupations and industries with higher injury and fatality rates. Second, immigrants have higher work-related injury and fatality rates in some advanced economies, but not all. Finally, most, but not all, immigrants appear to earn risk premiums similar to natives for working in risky jobs. The chapter closes with a discussion of areas where additional research is needed. |
| Keywords: | immigrants, risky jobs, compensating differentials |
| JEL: | J15 J61 J81 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6693&r=lab |
| By: | Donna E. Wood |
| Abstract: | Human resources and skills are becoming increasingly important to economic development. In the context of the economic downturn, challenges such as high youth unemployment call for a collaborative approach between local employment officials, educational institutions and wider social and economic partners. But do local labour market offices have sufficient flexibility in the implementation of their policies and programmes to contribute effectively to local strategies? If local labour market offices are to be given more flexibility, how can this be reconciled with the need for accountability and the achievement of national policy goals?<p>The Canada case study for the Building Flexibility and Accountability into Local Employment Services project explores the level of local accountability and flexibility within labour market policy in Canada, focusing in particular on the provinces of Alberta and New Brunswick. This report is one of four country reports, with the other participating countries being Belgium, Denmark and the Netherlands. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2010/17-en&r=lab |
| By: | Kronenberg, Kristin (Maastricht University) |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ner:maastr:urn:nbn:nl:ui:27-29510&r=lab |
| By: | James J. Heckman; Tim D. Kautz |
| Abstract: | This paper summarizes recent evidence on what achievement tests measure; how achievement tests relate to other measures of "cognitive ability" like IQ and grades; the important skills that achievement tests miss or mismeasure, and how much these skills matter in life. Achievement tests miss, or perhaps more accurately, do not adequately capture, soft skills—personality traits, goals, motivations, and preferences—that are valued in the labor market, in school, and in many other domains. The larger message of this paper is that soft skills predict success in life, that they causally produce that success, and that programs that enhance soft skills have an important place in an effective portfolio of public policies. |
| JEL: | D01 I20 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18121&r=lab |
| By: | Okumura, Tsunao; Usui, Emiko |
| Abstract: | Using the Japanese Study of Aging and Retirement (JSTAR), a new Japanese panel survey of people age 50 or older, we find that many Japanese in their early 50s - compared with those in their late 50s and early 60s - expect their level of public pension benefits to decline. We find that recent pension reform, which raised the pensionable age, affected people by increasing the age when they expect to claim their benefits by almost the exact same amount for all. The reform decreases their expectations for public pension benefits, although this effect is not necessarily significant. We also find evidence that individuals’ anxiety about the public pension program’s future induces an increase in their private savings. |
| Keywords: | subjective expectations, pension reform, uncertainty, savings |
| JEL: | E21 H55 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:559&r=lab |
| By: | Braun, Sebastian (Kiel Institute for the World Economy); Kvasnicka, Michael (RWI) |
| Abstract: | Does immigration accelerate sectoral change towards high-productivity sectors? This paper uses the mass displacement of ethnic Germans from Eastern Europe to West Germany after World War II as a natural experiment to study this question. A simple two-sector model of the economy, in which moving costs prevent the marginal product of labor to be equalized across sectors, predicts that immigration boosts output per worker by expanding the high-productivity sector, but decreases output per worker within a sector. Using German district-level data from before and after the war, we find strong empirical support for these predictions. |
| Keywords: | immigration, sectoral change, output growth, post-war Germany |
| JEL: | J61 J21 C36 N34 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6690&r=lab |
| By: | Aristovnik, Aleksander |
| Abstract: | The purpose of the paper is to review some previous researches examining ICT efficiency and the impact of ICT on educational output/outcome as well as different conceptual and methodological issues related to performance measurement. Moreover, a definition, measurements and the empirical application of a model measuring the efficiency of ICT use and its impact at national levels will be considered. For this purpose, the Data Envelopment Analysis (DEA) technique is presented and then applied to selected EU-27 and OECD countries. The empirical results show that the efficiency of ICT, when taking educational outputs/outcomes into consideration, differs significantly across the great majority of EU and OECD countries. The analysis of the varying levels of (output-oriented) efficiency (under the VRSTE framework) shows that Finland, Norway, Belgium and Korea are the most efficient countries in terms of their ICT sectors. Finally, the analysis finds evidence that most of the countries under consideration hold great potential for increased efficiency in ICT and for improving their educational outputs and outcomes. |
| Keywords: | Information and Communication Technology (ICT); education; performance; efficiency; DEA; EU; OECD |
| JEL: | I2 L8 O57 H5 O3 |
| Date: | 2012–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39805&r=lab |
| By: | Gabriel Bruneau; Kevin Moran |
| Abstract: | We estimate the impact of exchange rate fluctuations and other external factors on hours worked and employment in Canada’s manufacturing industries. The analysis is based on a dynamic model of labour demand and the econometric strategy employs a dynamic OLS approach for cointegrating regressions. Our data is drawn from a panel of 20 manufacturing industries, from Statistics Canada’s KLEMS database, and covers a long sample that includes two full cycles of appreciation and depreciation in the value of the Canadian dollar. We find that exchange rate fluctuations have economically and statistically significant effects on the labour choices of Canada’s manufacturing employers, and that these effects are stronger for industries more exposed to trade. In addition, we find that the enactment of NAFTA in 1994 has had a negative impact on labour in manufacturing industries. Finally, we report that employment reacts faster than total hours worked, suggesting that hours worked per employee react in a countercyclical fashion to exchange rate fluctuations. |
| Keywords: | exchange rate fluctuations, manufacturing employment, panel data estimation, cointegration regression |
| JEL: | E24 F16 F31 J23 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1227&r=lab |
| By: | Lynn McDonald |
| Abstract: | Questions that people ask, when they hear that mandatory retirement has been repealing include: will people be forced to toil longer to stay financially healthy? Will they change careers later in life to keep their interest in a subject or explore new interests? How will working longer affect their health? How will much older people affect the ambitions and working styles of younger colleagues? Will companies have to change their health and benefit plans to accommodate older people? This chapter discusses implications for both individuals and companies about hiring/retaining workers beyond the mandatory retirement age including differences in power relationships that place older workers who love and want to stay in their job in a compromised position. Issues related to international political economy will be addressed. |
| Keywords: | Cultural economics, economic sociology, economic anthropology |
| JEL: | Z10 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:sedapp:292&r=lab |
| By: | Nitin Gupta |
| Abstract: | This paper primarily investigates the issue of labour welfare in Indian industries, and seeks to make a contribution to the debate on labour reforms currently underway in India. It investigates the relative importance of technical change, elasticities of substitution, and labour regulations for labour welfare, proxied by the income shares of skilled and unskilled labour in total costs. Three primary conclusions arise. First, pure technical change has no discernible impact on income shares. Second, there is a clear pattern between the magnitudes of and changes in elasticities of substitution and associated incomes shares. Elasticity changes have tended to favour skilled labour and hurt unskilled labour. Finally, pro-worker labour regulations have a somewhat positive impact on unskilled labour shares, by mitigating the negative impact of substitution elasticities, but not completely reversing them. Pro-employer regulations, by contrast, do not have a good record of safeguarding labour interests. Based on these conclusions, the paper makes the case that a clear articulation of the goals for labour reforms should precede their designing. |
| Keywords: | Labour force & employment, labour policy, manufacturing, production structure, technological change |
| JEL: | J21 J78 L6 L11 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2012-10&r=lab |
| By: | Nelen, Annemarie Cornelia (Maastricht University) |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ner:maastr:urn:nbn:nl:ui:27-29520&r=lab |