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on Labour Economics |
| By: | Sencer Karademir; Jean-William P. Laliberté; Stefan Staubli |
| Abstract: | This paper examines the multigenerational impact of children and whether the public provision of formal childcare lessens the earnings and employment impacts of children. We find that the arrival of a firstborn reduces employment and earnings of mothers and employment of grandmothers. Studying a universal childcare program in Quebec, we find formal childcare increases the employment rates of mothers, as well as that of grandmothers to a lesser extent. Examining heterogeneity of the program's impact across Census Divisions, we find a negative correlation between the positive effects on mothers' employment and the pre-policy supply of informal childcare by grandmothers. |
| JEL: | H31 J08 J13 J16 J18 J22 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32204&r=lab |
| By: | Zantomio, Francesca (Ca' Foscari University of Venice); Belloni, Michele (University of Torino); Carrieri, Vincenzo (University of Calabria); Farina, Elena (ASL TO3 Grugliasco); Simonetti, Irene (Ca' Foscari University of Venice) |
| Abstract: | We investigate behavioral responses to the generosity of Disability Insurance (DI) within the context of work compatibility. Exploiting an institutional discontinuity leading to exogenous variation in replacement rates, we use rich administrative data on the work and health histories of Italian private sector workers and focus on individuals impacted by acute CVD shocks leading to unplanned hospitalizations. Using a Regression Discontinuity strategy, we identify a substantial DI response to benefit generosity, suggesting an elasticity of DI participation of 1.26. Additionally, we observe a smaller employment response, with an estimated elasticity of -0.15. Our findings indicate that the receipt of DI is widely perceived as a complement to labour income within a framework of work compatibility. These results carry significant implications for the design of labour-inclusive DI scheme. |
| Keywords: | disability insurance, elasticity, replacement rate, labour supply, regression discontinuity |
| JEL: | I38 J14 J22 H55 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16819&r=lab |
| By: | Canavire Bacarreza, Gustavo J. (World Bank); Cueva, Ronald A. (University of Illinois at Urbana-Champaign); Dávalos, María E. (World Bank) |
| Abstract: | Job quality can impact workers' productivity and contribute to societal well-being. To analyze the evolution of job quality in Bolivia, this paper employs Bolivian household survey data spanning 2007 to 2021 to construct a synthetic job quality index. The index incorporates a broad definition of a good job, encompassing six dimensions: adherence to regulations, working conditions, establishment of an appropriate wage-job linkage, productive usage and adaptability of skills, availability of career opportunities, and employment resilience. The findings indicate that job quality in Bolivia has mostly remained incessant, exhibiting limited change even during periods of high growth in economic output. However, this result masks heterogeneities, with significant variation in job quality associated with workers' demographic and job-specific characteristics and across regions. |
| Keywords: | labor market, principal component analysis, job quality, Bolivia |
| JEL: | J21 J26 J28 J81 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16806&r=lab |
| By: | García-Suaza, Andrés (Facultad de Economía Universidad del Rosario); Mondragón-Mayo, Angie (Facultad de Economía Universidad del Rosario); Sarango-Iturralde, Alexander (Université Paris1 Panthéon-Sorbonne) |
| Abstract: | Immigration policies prioritize labor market integration, aiming for high employment rates and leveraging migrant skills to enhance host country productivity. However, migrants often face entry barriers and human capital misallocation. This article examines the occupational downgrading of Venezuelan migrants in Colombia and assesses the impact of work permit policies on mitigating this trend. Our empirical findings highlight significant occupation downgrading, prompting an exploration of the role of work permits. The analysis indicates that permits have expanded employment prospects for migrants who were previously unemployed or engaged in blue-collar jobs, mainly for females and the youngest population. While permits do not significantly reduce occupation downgrading they are associated with more formal job search mechanisms. Moreover, our findings show no significant impact of work permits on the intensity of routinization; instead, there is an increase in the intensity of non-routine analytic and interactive tasks among the youngest workers. This suggests that permits could be complemented with additional instruments to enhance migrant matching in the labor market. |
| Keywords: | Migration; occupational downgrading; labor mobility; work permits |
| JEL: | F22 J24 J61 O15 |
| Date: | 2024–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:021028&r=lab |
| By: | Reljic, Jelena; Zezza, Francesco |
| Abstract: | We contribute to the long-standing debate on the Italian North-South divide by assessing the impact of public spending on social infrastructure - including education, healthcare, childcare and social assistance - on the gender employment gap over the last two decades, using a PSVAR analysis. These investments, while not explicitly targeting women, may increase both their labour supply - by reducing the unpaid care work burden - and pro-women labour demand through job creation in care sectors that predominantly employ women. Our research reveals a positive and long-lasting impact of social infrastructure expenditure on private investment, GDP and employment in all areas of the country. However, the reduction of the gender employment gap is detected only in the South and among high-skilled women. These results stress the need for targeted policies to fill the investment gaps in social infrastructure, aiming for a more inclusive labour market, particularly in Southern regions, which suffer from chronic underinvestment and structural challenges. |
| Keywords: | Social infrastructure, Gender inequality, Fiscal Policy, Panel SVAR, Italian regions |
| JEL: | C33 E24 H30 J16 J18 J21 R58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1407&r=lab |
| By: | Corinth, Kevin (American Enterprise Institute for Public Policy Research); Larrimore, Jeff (Federal Reserve Board) |
| Abstract: | We find that each of the past four generations of Americans was better off than the previous one, using a post-tax, post-transfer income measure constructed annually from 1963-2022 based on the Current Population Survey Annual Social and Economic Supplement. At age 36-40, Millennials had a real median household income that was 18 percent higher than that of the previous generation at the same age. This rate of intergenerational progress was slower than that experienced by the Silent Generation (34 percent) and Baby Boomers (27 percent), but similar to that experienced by Generation X (16 percent). Slower progress for Generation X and Millennials is due to their stalled growth in work hours - holding work hours constant, they experienced a greater intergenerational increase in real market income than Baby Boomers. Intergenerational progress for Millennials under age 30 has remained robust as well, although their income growth largely results from higher reliance on their parents. We also find that the higher educational costs incurred by younger generations is far outweighed by their lifetime income gains. |
| Keywords: | full income, growth, generations, mobility, Millennials |
| JEL: | D31 E24 H24 J3 J62 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16807&r=lab |
| By: | Knutsson, Daniel (Orebro University School of Business, Research institute of Industrial Economics, and Center for Health Economics Research, Uppsala University); Tyrefors, Björn (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We evaluate a non-targeted summer youth employment program (SYEP) for high school students aged 16-19 in Stockholm, Sweden, where public sector job offers were as good as randomly assigned. In contrast to previous studies evaluating SYEP that targeted groups with lower socioeconomic status, we find substantial labor market effects but no effects on education, crime, or health outcomes. However, income is negatively affected except during the program year. The penalty increases in absolute terms but does not change much in relative terms over time. The penalty is consistently statistically significant and large just after high school graduation but there are indications that the penalty attenuates at ages 24. The adverse effects are the largest for applicants not enrolled in an academic track, who are males, and with less educated mothers. Interestingly, the extensive margin (having a job) is not the critical factor. Instead, a SYEP job offer affects the probability of obtaining more qualified and fulltime employment after high school graduation. We argue that receiving a program job leads to less private-sector labor market experience, provides a negative signal, and disrupts (private) labor market connections, which is vital for those seeking a job just after high school. |
| Keywords: | Labor market programs; Youth unemployment; Summer employment; Randomlist; SYEP |
| JEL: | J13 J21 J38 J45 |
| Date: | 2024–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2024_005&r=lab |
| By: | OECD |
| Abstract: | Despite women’s increased participation in the labour market significantly contributing to past economic growth, persistent gender gaps across OECD labour markets hinder full realization of the potential gains of women’s economic participation. This paper analyses the economic implications of these gaps and evaluates the potential for future growth through greater gender equality in labour market outcomes. Utilising two methodological frameworks, the paper first employs growth accounting to measure the contribution of women's employment to past economic growth. The paper then uses a simplified version of the OECD Long-Term Model in conjunction with projections on future labour force dynamics to estimate the impact of greater gender equality on the labour market. These analyses provide insight into the potentially significant economic benefits of closing persistent gender gaps across OECD countries. |
| JEL: | J16 J21 O47 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:304-en&r=lab |
| By: | Mourelatos, Evangelos; Zervas, Panagiotis; Lagios, Dimitris; Tzimas, Giannis |
| Abstract: | This paper employs an online real-effort experiment to investigate gender disparities in the selection of individuals into competitive working environments when assisted by artificial intelligence (AI). In contrast to previous research suggesting greater competitiveness among men, our findings reveal that both genders are equally likely to compete in the presence of AI assistance. Surprisingly, the introduction of AI eliminates an 11-percentage-point gender gap, between men and women in our competitive scenario. We also discuss how the gender gap in tournament entry appears to be contingent on ChatGPT selection rather than being omnipresent. Notably, 47% of female participants independently chose to utilize ChatGPT, while 55% of males did the same. However, when ChatGPT was offered by the experimenter-employer, more than 53% of female participants opted for AI assistance, compared to 57% of males, in a gender-neutral online task. This shift prompts a reevaluation of gender gap trends in competition entry rates, particularly as women increasingly embrace generative AI tools, resulting in a boost in their confidence. We rule out differences in risk aversion. The discussion suggests that these behavioral patterns may have significant policy implications, as the introduction of generative AI tools in the workplace can be leveraged to rectify gender disparities. |
| Keywords: | Gender differences, ChatGPT, Competition, Economic experiments |
| JEL: | C90 J16 J71 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1404&r=lab |
| By: | Ernst, Ekkehard; Merola, Rossana; Reljic, Jelena |
| Abstract: | This study provides a critical assessment of various fiscal policy instruments - including direct public job creation, active labour market and care policies, social protection measures and tax reforms - and their effectiveness in supporting the most vulnerable groups in the labour market. Although much of the literature has focused on the quantitative effects of fiscal policy, this article concentrates on the qualitative aspects and examines the role of fiscal instruments in achieving a more inclusive and fair labour market. Our review shows that the empirical literature tends to overemphasise the capacity of individual policies to mitigate inequalities, neglecting the complex interdependencies among various mechanisms and policies in place. We argue, instead, that a systematic approach is necessary to ensure equitable access to good jobs and to address the disparities between different labour market groups. We also identify significant research gaps, such as the need for longitudinal studies on the long-term policy impacts, an exploration of the regional disparities within the policy-inequality nexus and the sector-specific effects of fiscal measures, especially relevant in the context of the green and digital transition. |
| Keywords: | fiscal policy, policy coordination, policy implementation, labour market outcomes, inclusive labour markets, social protection |
| JEL: | E6 H2 H3 H5 J1 J2 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1406&r=lab |
| By: | Cipollina, Maria; De Benedictis, Luca; Scibè, Elisa |
| Abstract: | The article provides cross-sectional evidence of domestic and international human migration associated with environmental shocks, with a specific emphasis on genderspecific heterogeneity and geographical distance. Both sudden and gradual environmental changes may influence the decision to migrate. However, the response is conditional to the cost and opportunity to move, which can vary based on gender and the distance between the location affected by the environmental shock and the hosting destination, within the country or internationally. Using the 5-year estimates of internal and international domestic migration flow disaggregated by sex, representative of the period 2005-2010, we estimate a structural gravity model and we find that migration can be influenced by environmental risks, as people may seek safer or more stable environments when their home regions are prone to disasters, albeit differently for each gender, both within a country and across borders. |
| Keywords: | Migration; Climate change; Natural disasters; Gender; Structural Gravity model. |
| JEL: | C13 F22 J61 Q51 Q54 Q56 |
| Date: | 2024–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:mol:ecsdps:esdp24093&r=lab |
| By: | Anna Bárdits (HUN-REN Centre for Economic and Regional Studies); Gábor Kertesi (HUN-REN Centre for Economic and Regional Studies) |
| Abstract: | This paper investigates how the type of home environment – family foster care or residential care – affects the adult outcomes of individuals who were raised in state care during adolescence. While it is established in the literature that living in residential care is detrimental for babies, the effect of living in different types of care as an older child is underexplored. We use Hungarian individual-level administrative panel data and follow the children from age 13 until age 19. We show that the adult outcomes of adolescents who grew up in a foster family are substantially better even after controlling for a rich set of variables, including indicators of cognitive and non-cognitive skills, and mental problems observed at age 13. Young adults who grew up in family foster care are 8 percentage points more likely to complete secondary education, and 11 percentage points less likely to spend at least 6 months without either working or studying at age 19, than comparable peers raised in residential care. Using mental health medication is 5 percentage points less likely. For girls, the probability of teenage birth and abortion are smaller by 12 percentage points each. IV estimations using local foster mother capacity as an instrument reinforce the beneficial effect of family foster care.. |
| Keywords: | Keywords: foster care, residential care, institutional care, state care |
| JEL: | J12 J13 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2403&r=lab |
| By: | Rangel, Marcos; Marotta, Luana; van der Werf, Cynthia; Duryea, Suzanne; Drouet Arias, Marcelo; Rodríguez Guillén, Lucina |
| Abstract: | We investigate the assimilation of immigrant youth in Ecuador. Focusing on formal schooling and employing administrative data from high schools, we document subtle ways by which assessment biases against students with an immigrant background play a significant role in this assimilation process. We find that, after holding constant performance on blindly scored proficiency tests, teacher-assigned grades in Mathematics and Spanish are consistently lower for students from immigrant families. We show that these results are robust with respect to the omission of socio-emotional and behavioral traits that are likely valued by teachers. These differentials are larger for male students and those attending urban schools. While these grading differentials have direct impact over high school graduation rates, they may also discourage future human capital investments, potentially leading to lower college attendance, distorted choice of major, and sub-optimal labor market outcomes, which are all well know elements for the economic assimilation of immigrants. |
| Keywords: | Immigration assimilation;human capital;teacher discrimination;grading bias |
| JEL: | I24 J15 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13434&r=lab |
| By: | Riedel, Lukas |
| Abstract: | This paper assesses the impact of a large expansion of public childcare in Germany on wage inequality. Exploiting regional variation in childcare supply over the 1990s, I show that in regions with stronger increases in childcare, wage inequality among women increased less strongly compared to regions with smaller increases. This is primarily driven by the lower half of the wage distribution and qualitatively similar for full- and part-time workers. Larger expansions in childcare, however, do not contribute to a further closing of the gender wage gap. |
| Keywords: | wage inequality, childcare, gender wage gap |
| JEL: | J13 J16 J31 J82 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283614&r=lab |
| By: | Javad Shamsi |
| Abstract: | This paper examines how immigration reshapes political landscapes, centring on the influx of immigrants from the EU's 2004 enlargement and its implications for the UK. I use a new variation in exposure to immigration based on migrant flows across various industries coupled with the employment structure in each region. Addressing potential concerns of endogeneity, I introduce a novel shift-share IV design, harnessing the industry-specific flow of migrants to regions outside the UK within the pre-2004 EU. The findings reveal a significant impact on support for the right-wing UK Independence Party and the Brexit Leave campaign, accompanied by a decline in Labour Party support. Moreover, the research indicates that voters' social attitudes toward immigration become more adverse in response to immigration. Political parties, particularly Conservatives, are also observed to increasingly engage with the topic of immigration in constituencies most affected by immigration, typically marked by negative rhetoric. The paper reconciles these findings by highlighting how immigration shocks entrench immigration cleavage, realigning political conflict from traditional economic lines to new cultural dimensions. |
| Keywords: | immigration, political realignment, industry-specific migration, EU enlargement |
| Date: | 2024–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1983&r=lab |
| By: | Corrado Di Guilmi; Georgia K. Rylah |
| Abstract: | This paper examines the Japanese Beveridge curve in order to identify a possible structural break prior to the COVID-19 pandemic. We utilize two levels of analysis to detect a break in the relationship between unemployment and vacancies and determine its timing and potential causes. First, the relationship for the period January 2000 - June 2023 is estimated by means of a Vector Error Correction Model. We detect a structural break in November 2019 and find evidence of change in the relationship between unemployment and vacancies as early as 2018. Second, we use disaggregated vacancy and unemployment data to analyze the Beverdige curves for sub-groups at the occupational, industrial, and contractual levels and carry on an extensive mismatch analysis. We find that services-related industries and occupations contributed to a relatively larger extent to the break in the curve. Counterfactual experiments suggest that the decline in vacancies and the increase in unemployment recorded during the pandemic period were amplified by the break. |
| Keywords: | Beveridge curve, Vector Error Correction Model, labor market mismatch |
| JEL: | C32 E24 J01 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2024-20&r=lab |
| By: | Kan Nakajima; Yoko Shirasu; Eiji Kodera |
| Abstract: | This study examines the existence of tokenism in Japanese companies after the implementation of corporate governance reforms. We focus on the appointment of female outside directors. The existence of tokenism in corporate boards is an important issue for companies worldwide because it deals with gender diversity in the appointment of board members. Following the Abenomics policy of empowering women, Japan introduced ``Japan's Corporate Governance Code'' (the Code), which included board reforms such as appointing at least two outside directors. Using a quasi-natural experiment, we examine whether tokenism occurs in Japan, a country with a low female participation level in business. Empirical analysis reveals the occurrence of tokenism at the start of the Code¡Çs introduction. Companies appoint two outside directors to meet the formal requirements of the Code. They appoint a male outside director first and a female director later as a token. However, tokenism is not observed when busy female directors with a lot of experience are appointed to the board because they presumably have the expertise and skill. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e201&r=lab |
| By: | Lena Abou El-Komboz; Moritz Goldbeck |
| Abstract: | Are national borders an impediment to online collaboration in the knowledge economy? Unlike in goods trade, knowledge workers can collaborate fully virtually, such that border effects might be eliminated. Here we study collaboration patterns of some 144, 000 European developers on the largest online code repository platform, GitHub. To assess the presence of border effects we deploy a gravity model that explains developers’ inter-regional collaboration networks. We fnd a sizable border effect of –16.4%, which is, however, fve to six times smaller than in trade. The border effect is entirely explained by cultural factors such as common language, shared interests, and historical ties. The international border effect in Europe is much larger than the state border effect in the US, where cross-border cultural differences are much less pronounced, further strengthening our conjecture that culture is a main driver of the border effect in virtual collaboration. |
| Keywords: | digitization, software development, knowledge work, culture, language |
| JEL: | F66 J61 O31 O33 O36 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_407&r=lab |