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on Labour Economics |
| By: | Marco Pecoraro; Anita Manatschal; Eva G. T. Green; Philippe Wanner |
| Abstract: | The marked increase of asylum seekers arriving in Western Europe after 2014 has renewed debates on the policy measures countries should put into place to support their integration. Yet, knowledge about the links between integration policy and broader labour market, sociocultural or psychological adjustment in destination countries is still limited. Exploiting a comprehensive integration policy reform in Switzerland, and using survey data from the Health Monitoring of the Swiss Migrant Population, our difference-in-difference analyses reveal substantial policy effects. Provisionally admitted Sri Lankans benefiting from the reform enjoy a higher employment probability (plus 30 percentage points), increased income levels (plus 60 per cent), better language skills and feel less lonely or without a homeland relative to comparable Sri Lankan asylum seekers who did not benefit from the reform. Robustness checks using register data confirm the beneficial policy effect on labour market participation for the whole population of provisionally admitted individuals. |
| Keywords: | Asylum, Integration Policy, Labour Market, Sociocultural adaptation, Psychological Wellbeing, Difference-in-Differences |
| JEL: | F22 J24 J61 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:19-08&r=all |
| By: | Gerard J. Van den Berg; Iris Kesternich; Gerrit Müller; Bettina Siflinger |
| Abstract: | We investigate how negatively reciprocal traits of unemployed individuals interact with “sticks” policies imposing constraints on individual job search effort in the context of the German welfare system. For this we merge survey data of long-term unemployed individuals, containing indicators of reciprocity as a personality trait, to a unique set of register data on all unemployed coached by the same team of caseworkers and their treatments. We find that the combination of a higher negative reciprocity and a stricter regime have a negative interaction effect on search effort exerted by the unemployed. The results are stronger for males than for females. Stricter regimes may therefore drive long-term unemployed males with certain types of social preferences further away from the labor market. |
| Keywords: | behavioral response, active labor market policy, monitoring, welfare, job search |
| JEL: | D90 J16 J24 J64 N44 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7947&r=all |
| By: | Zhang, Hanzhe (Michigan State University, Department of Economics) |
| Abstract: | I build an equilibrium investment-and-marriage model with differential fecundity to explain stylized facts about education, income, and marriage for Americans born in the twentieth century that had not been explained in a unified way. The most novel finding is an explanation for why women attend college at a higher rate and earn a lower average income than men. Differential fecundity and an equilibrium marriage market form the basis of my explanation. The model also accounts for gender-specific relationships between age at marriage and income, and the evolving relationship between age at marriage and spousal income for women. I provide evidence to support my theory and calibrate the model to conduct counterfactual analyses. |
| Keywords: | college gender gap; earnings gender gap; marriage age; nonassortative matching |
| JEL: | C78 D01 J11 |
| Date: | 2019–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:msuecw:2019_011&r=all |
| By: | Kölling, Arnd; Schnabel, Claus |
| Abstract: | Using data from the representative IAB Establishment Panel in Germany and estimating a panel probit model with fixed effects, this paper finds a negative relationship between the existence of owner-management in an establishment and the probabilities of having a works council or a collective bargaining agreement. We show that family firms which are solely, partially or not managed by the owners significantly differ in the presence of works councils and collective bargaining agreements. The probabilities of having works councils and collective agreements increase substantially if just some of the managers do not belong to the owner family. We argue that these differences cannot simply be attributed to an aversion of the owners against co-determination and unions but require taking account of the notion of socio-emotional wealth prevalent in family firms. In addition, our results support the idea that external managers mainly act as agents rather than stewards in family firms. |
| Keywords: | industrial relations,co-determination,works council,collective agreement,family firm,Germany |
| JEL: | J53 M54 G32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:102019&r=all |
| By: | David C. Maré (Motu Economic and Public Policy Research); Jacques Poot (Vrije Universiteit) |
| Abstract: | Does commuting increase workers' exposure to difference and diversity? The uneven spatial distribution of different population subgroups within cities is well documented. Individual neighbourhoods are generally less diverse than cities as a whole. Auckland is New Zealand's most diverse city, but the impacts of diversity are likely to be less if interactions between different groups are limited by spatial separation. Studies of spatial sociodemographic diversity generally measure the diversity of local areas based on who lives in them. In this study, we examine measures of exposure to local cultural diversity based on where people work as well as where they live. Our measure of cultural diversity is based on country of birth, with ethnicity breakdowns for the New Zealand (NZ) born. The study also examines whether the relationship between commuting and exposure to diversity differs between workers with different skills or types of job. The study focuses on diversity and commuting patterns within Auckland, using 2013 census microdata, and using local diversity measures calculated for each census area unit. We find that commuters who self-identify as NZ-born Europeans and residents born in England (together accounting for close to half of all commuters) are, of all cultural groups, the least exposed to diversity in the neighbourhoods where they live. Overall, commuting to the workplace raises exposure to cultural diversity, and to the greatest extent for these two groups. |
| Keywords: | Cultural diversity; exposure to difference; exposure to diversity; residential segregation; commuting; Auckland |
| JEL: | J15 R23 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:19_20&r=all |
| By: | Eliasson, Kent (Swedish Agency for Growth Policy Analysis, Östersund, Sweden. Umeå School of Business, Economics and Statistics, Umeå University, Sweden.); Haapanen, Mika (School of Business and Economics, University of Jyväskylä, Finland); Westerlund, Olle (Department of Economics, Umeå University) |
| Abstract: | In this paper, we analyse long-term changes in the regional distribution and migration flows of university graduates in Finland and Sweden. The study is based on detailed longitudinal population register data, including information on high school grades and parental background. We find a distinct pattern of skill divergence across regions in both countries over the last three decades. The uneven distribution of human capital has been reinforced by the mobility patterns among university graduates, for whom regional sorting by high school grades and parental background is evident. Our findings indicate that traditional measures of human capital concentration most likely underscore actual regional differences in productive skills. |
| Keywords: | Human capital; university graduates; migration; school grades; parental education; local labour market areas |
| JEL: | J24 J61 R10 R12 R23 |
| Date: | 2019–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0966&r=all |
| By: | Jie Bai (Center for International Development at Harvard University); Panle Barwick; Shengmao Cao; Shanjun Li |
| Abstract: | Are quid pro quo (technology for market access) policies effective in facilitating knowledge spillover to developing countries? We study this question in the context of the Chinese automobile industry where foreign firms are required to set up joint ventures with domestic firms in return for market access. Using a unique dataset of detailed quality measures along multiple dimensions of vehicle performance, we document empirical patterns consistent with knowledge spillovers through both ownership affiliation and geographical proximity: joint ventures and Chinese domestic firms with ownership or location linkage tend to specialize in similar quality dimensions. The identification primarily relies on within-product variation across quality dimensions and the results are robust to a variety of specifications. The pattern is not driven by endogenous joint-venture network formation, overlapping customer base, or learning by doing considerations. Leveraging additional micro datasets on part suppliers and worker flow, we document that supplier network and labor mobility are important channels in mediating knowledge spillovers. However, these channels are not tied to ownership affiliations. Finally, we calibrate a simple learning model and conduct policy counterfactuals to examine the role of quid pro quo. Our findings show that ownership affiliation facilitates learning but quality improvement is primarily driven by the other mechanisms. |
| Keywords: | Knowledge spillover |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:cid:wpfacu:368&r=all |
| By: | Massimo Filippini (Center of Economic Research (CER-ETH), ETH Zurich, Switzerland and Universita della Svizzera Italiana (USI), Switzerland); Suchita Srinivasan (Center of Economic Research (CER-ETH), ETH Zurich, Switzerland) |
| Abstract: | The health and safety of workers are important determinants of their productivity. In manufacturing industries, occupational health and safety (OHS) measures are critical workplace practices for employers to ensure better working conditions for employees, particularly in industries with rampant indoor pollution. This paper studies the impact of investments undertaken by small and medium enterprises in Vietnam in worker health and safety (including in air quality improvements, heat and noise protection as well as in lighting measures) on labor productivity using a production function approach and panel data from 2011-2015. We find that the amount invested by the firm per worker has a significant positive effect on labor productivity. Moreover, our results hold true for both small and large firms, and for firms belonging to different subgroups of industries. Given historically poor working conditions in Vietnam, policy implications relate to the importance of OHS measures and pollution abatement in influencing economic outcomes such as productivity. |
| Keywords: | Investments in health, Indoor pollution, Labor productivity, Small and medium enterprises, Vietnam |
| JEL: | D83 Q18 Q54 C23 C26 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:19-326&r=all |
| By: | Jan van Ours (Erasmus University Rotterdam); Matteo Picchio (March Polytechnic University) |
| Abstract: | We study the retirement effects on mental health using a fuzzy regression discontinuity design based on the eligibility age to the state pension in the Netherlands. We find that the mental effects are heterogeneous by gender and marital status. Retirement of partnered men positively affects mental health of both themselves and their partners. Single men retiring experience a drop in mental health. Female retirement has hardly any effect on their own mental health or the mental health of their partners. Part of the effects seem to be driven by loneliness after retirement. |
| Keywords: | Retirement, health, regression discontinuity design |
| JEL: | J26 H55 J14 |
| Date: | 2019–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20190081&r=all |
| By: | Michael A. Zabek |
| Abstract: | If someone lives in an economically depressed place, they were probably born there. The presence of people with local ties - a preference to live in their birthplace - leads to smaller migration responses. Smaller migration responses to wage declines lead to lower real incomes and make real incomes more sensitive to subsequent demand shocks, a form of hysteresis. Local ties can persist for generations. Place-based policies, like tax subsidies, targeting depressed places cause smaller distortions since few people want to move to depressed places. Place-based policies targeting productive places increase aggregate productivity, since they lead to more migration. |
| Keywords: | Migration ; Decline ; Economic development, technological change, and growth ; Labor and demographic economics ; Local labor markets |
| JEL: | J61 R23 E62 R58 H31 D61 J11 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2019-80&r=all |
| By: | Stefan Jestl (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Sebastian Leitner (The Vienna Institute for International Economic Studies, wiiw); Barbara Wanek-Zajic |
| Abstract: | This paper analyses labour market integration in Austria of non-European refugees originating from middle and low income countries for the period 2009-2018. We assess their probability of being employed in comparison to non-humanitarian migrants, European third country immigrants and natives. We draw on a register based panel dataset covering the complete labour market careers of all individuals residing in Austria. We control for macro level explanatory variables (e.g. the labour market situation at the time and the place of settlement) and individual characteristics. The analysis shows that initial refugee employment gaps are large in the first years when labour market access is difficult. After a period of seven years the unconditional gap between refugees and natives declines to 30 percentage points, similar to the one of non-humanitarian migrants, but the gap is still further decreasing. After controlling for a set of additional explanatory variables, the conditional gap amounts to only 10 percentage points at the same time. Moreover, our analysis provides insights into differences between employment gaps across population subgroups of immigrant groups and natives by gender, age and education level. Disclaimer Research for this paper was financed by the Anniversary Fund of the Oesterreichische Nationalbank (Project No. 17166). Support provided by Oesterreichische Nationalbank for this research is gratefully acknowledged. |
| Keywords: | Refugees; Migrants; labour market participation; longitudinal research |
| JEL: | J61 J15 F22 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:167&r=all |
| By: | Sabrina T. Howell; Ramana Nanda |
| Abstract: | Exploiting random variation in the number of venture capitalist (VC) judges assigned to panels at Harvard Business School’s New Venture Competition (NVC) between 2000 and 2015, we find that exposure to more VC judges increases male participants’ chances of founding a VC-backed startup after HBS much more than this exposure increases female participants’ chances. A survey suggests this is in part because male participants more often proactively reach out to VC judges after the NVC. Our results suggest that networking frictions are an important reason men benefit more than women from exposure to VCs. Such frictions can help explain part of the gender gap in entrepreneurship, and also have implications for how to design networking opportunities to facilitate financing of the best (rather than just the best networked) ideas. |
| JEL: | D83 D85 G24 J16 L26 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26449&r=all |
| By: | Kohlbrecher, Britta |
| Abstract: | Real wage rigidity is known to create a substantial trade-off between inflation and employment stabilization for monetary policy in New Keynesian models with search frictions on the labor market. This paper shows that, quantitatively, this finding hinges very much on the assumption of constant returns to scale in production. With decreasing returns to scale, monetary policy with a single focus on inflation stabilization is close to optimal. The reason is twofold: Firms cushion the impact of rigid real wages on marginal costs by adjusting the marginal product of labor over the cycle. In addition, given employment fluctuations have a smaller effect on consumption volatility. Decreasing returns to scale thus remove the need for active monetary policy even if wages are rigid. Importantly, this contrasts with the implications of combining real wage rigidity and decreasing returns to scale for other policy instruments. |
| Keywords: | optimal monetary policy,Ramsey policy,search and matching,real wage rigidity |
| JEL: | E24 E32 E52 J64 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:072019&r=all |
| By: | Marco Caliendo (University of Potsdam, IZA Bonn, DIW Berlin, IAB Nuremberg); Stefan Tübbicke (University of Potsdam) |
| Abstract: | We estimate the long-term effects of start-up subsidies (SUS) for the unemployed on subjective outcome indicators of well-being, as measured by the participants’ satisfaction in different domains. This extends previous analyses of the current German SUS program (“Gründungszuschuss”) that focused on objective outcomes – such as employment and income – and allows us to make a more complete judgment about the overall effects of SUS at the individual level. This is especially important because subsidizing the transition into self-employment may have unintended adverse effects on participants’ well-being due to its risky nature and lower social security protection, especially in the long run. Having access to linked administrative-survey data providing us with rich information on pre-treatment characteristics, we base our analysis on the conditional independence assumption and use propensity score matching to estimate causal effects within the potential outcomes framework. We find long-term positive effects on job satisfaction but negative effects on individuals’ satisfaction with their social security situation. Further findings suggest that the negative effect on satisfaction with social security may be driven by negative effects on unemployment and retirement insurance coverage. Our heterogeneity analysis reveals substantial variation in effects across gender, age groups and skill levels. The sensitivity analyses show that these findings are highly robust. |
| Keywords: | Start-Up Subsidies, Propensity Score Matching, Counterfactual Analysis, Well-Being |
| JEL: | C14 L26 H43 I31 J68 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:14&r=all |
| By: | Francesco Bripi (Bank of Italy) |
| Abstract: | Business travels are a key driver of growth as they contribute to knowledge diffusion and innovation. They are also a relevant component of services trade. This paper analyzes the determinants of business travels expenditure in Italy, where this phenomenon is relevant and it is concentrated in few Italian regions. Using a “unilateral” gravity approach, I find significant correlations between trade flows, FDI stocks and business travel expenditures. Identification is addressed using inverse measures of offshorable and of routinary tasks, instrumental variables and selection methods. The analysis highlights that the pattern of business travels expenditure is shaped to some extent by the business cycle of partner countries relative to that of Italian regions. Moreover, the pattern is determined to a greater extent by activities that are least intensive in offshorable or routinary tasks. This second result suggests that remote controls systems substituted only more standardized activities. Indeed, broadband diffusion in the partner countries reduced business travels expenditure only in more routinary sectors. Overall this evidence is consistent with the view that business travels have been affected by the recent developments in ICT. |
| Keywords: | services trade, travel, FDI, knowledge diffusion |
| JEL: | F14 F20 J61 O33 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_523_19&r=all |
| By: | Hardoy, Inés (Institute of Social Research); Zhang, Tao (Ragnar Frisch Centre for economic research) |
| Abstract: | Large waves of refugees have arrived in Europe on a regular basis in recent decades. We know little about the impact of labour market policies intended to improve the labour market integration of refugees and their reunited family members. Using rich longitudinal data from Norway of the past 30 years, we study the impact of different labour market programs for refugees and their reunited families. We find no lock-in effects while the program is in process. On the contrary, program participation seems to function as a springboard to working life. Work practice seems to be particularly suitable for refugees to enhance employability while training enhances ordinary education. Wage subsidies do not seem to have the desired impact and can be an indication that it may have been used too early in the integration process. |
| Keywords: | refugees; labour market programs; effect evaluation; time-of-event analysis |
| JEL: | C41 J22 J61 J68 |
| Date: | 2019–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2019_008&r=all |
| By: | Galina L. Volkova (National Research University Higher School of Economics); Egor A. Nikishin (National Research University Higher School of Economics) |
| Abstract: | Mobility of highly qualified personnel between countries and regions is closely related to the issue of the effective distribution of human resources and the prospects for the innovative development of the state. The focus of this study is the interregional mobility of Russian researchers: the geographical movements of scientists between different regions (subjects of the Russian Federation). The empirical base of the study is the data obtained in 2016-2017 during the questionnaire survey of 1880 Russian researchers. Two main aspects are analyzed: already accomplished movements of researchers (moving for the educational or working purposes) and the “attitude to mobility” - readiness to move in the future. The features of researchers depending on their mobility pattern are analyzed. Among the most researchers who had the experience of moving in the past (both for education and work purposes) develops the “attitude to mobility”. In the future, they are more willing to consider various options for moving both “for interest” (to participate in an important large-scale project), and “for money” (to get the job with acceptable level of remuneration). There exists a category of Russian researchers who are ready to move “anywhere”: both abroad and within Russia, to large and to small cities. Researchers who are not ready to move to the place that they consider as a small town in a remote region, are concerned about the prospects for professional growth, difficulties for the family, a different lifestyle, change of professional and personal social circle. These aspects should be taken into account in the development of various programs and measures aimed to stimulate internal academic mobility in Russia. |
| Keywords: | academic mobility, human capital, researchers, scientific career, mobility patterns, readiness to move |
| JEL: | I23 J61 O15 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:103sti2019&r=all |