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on Labor Markets - Supply, Demand, and Wages |
| By: | Cortes, Guido Matias; Dabed, Diego; Oliveira, Ana; Salomons, Anna |
| Abstract: | We consider how firms' organization of production relates to workers' wages. Using matched employer-employee data from Portugal, we document that firms differ starkly in their occupational employment concentration, even within detailed industries, with some firms employing workers across a broad range of occupations and others being much more specialized. These differences are robustly predictive of wages: a worker employed in a specialized, i.e. "fissured" firm, earns less than that same worker employed in a less specialized firm. This wage penalty for working in a fissured firm is observed across occupations of all skill levels. Firm specialization helps account for the role of firms in inequality, as specialization is strongly negatively related to estimated AKM firm fixed effects. Around two-thirds of the wage penalty from fissuring is explained by differences in firm productivity. Fissured firms also engage in lower rates of rent-sharing conditional on productivity, accounting for around one-quarter of the difference in wage premia between high- and low-specialization firms. Finally, we show that being employed in a specialized firm is also associated with worse longer-term career outcomes for workers. |
| Keywords: | Occupational Segregation, Between-Firm Wage Inequality, Firm Productivity, Rent-Sharing |
| JEL: | J24 J31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:clefwp:307595 |
| By: | Christos A. Makridis; Jason Schloetzer |
| Abstract: | We use a survey of nearly 360, 000 workers conducted from May 2020 through December 2023 to characterize shifts in remote work across time, industry, occupation, and geography, and examine the evolving relationship between remote work and employee engagement. We find remarkable stability in the incidence of remote work since mid-2021 with roughly one-half of workers reporting always working remotely or in a hybrid arrangement. While remote work arrangements across industries remain broad-based, at the occupation level, they are conspicuously concentrated in certain job classifications. Remote work continues to evolve across the U.S., with 13 (14) states experiencing reported increases (decreases) in remote work rates since 2022 with the most populous states experiencing remote working rates exceeding 40% of workers. Empirical evidence shows that while working remotely correlates with higher job satisfaction and lower intentions to quit, these correlations disappear when other workplace characteristics such as pay practices, human resources policies, and managerial relationships are considered. If remote work remains the norm, our results suggest it may not directly influence employee engagement—the workplace still matters. |
| JEL: | J2 J28 M12 M54 O33 R23 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33315 |
| By: | E. Glenn Dutcher; Krista J. Saral |
| Abstract: | Remote work policies remain controversial because of the perceived opportunity for increased shirking outside of the traditional office; a problem that is potentially exacerbated if employees work in a revenue-sharing team environment. Using a controlled experiment, where individuals are randomized to different work locations (remote or an office-like setting), we examine how remote work impacts effort choices under individual pay schemes and in revenue sharing teams. Treatments vary the number of remote workers on a team. Our results suggest that work location alone does not lead to productivity differences. However, the location of partners does impact an individual’s effort levels in revenue-sharing teams. Non-remote workers reduce effort as the number of remote partners increases, and remote workers increase effort as the number of remote workers increases. These results are driven predominantly by those who are relatively less productive as individuals. Post-experiment incentivized survey evidence points to expectations of partner productivity as a contributing factor. |
| JEL: | C9 J21 J24 J28 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33321 |
| By: | Bastani, Spencer (IFAU - Institute for Evaluation of Labour Market and Education Policy); Giebe, Thomas (Department of Economics and Statistics, School of Business and Economics, Linnaeus University); Guertler, Oliver (Department of Economics, University of Cologne) |
| Abstract: | Gender differences in overconfidence are well documented in the empirical literature, but their impact on labor market outcomes remains underexplored. We provide new insights into how behavioral biases interact with career dynamics by presenting a theoretical analysis of how men’s relatively higher overconfidence shapes gender differences in the labor market. Using a promotion-signaling model with competitive work incentives in which wages are endogenously determined, we show that overconfident workers exert more effort, are more likely to be promoted, and ultimately earn higher wages across job levels despite having lower expected ability conditional on promotion. The higher effort not only increases their chances of promotion, but also contributes to human capital accumulation through learning-by-doing, leading to higher productivity. However, overconfidence can be a double-edged sword: while it can lead to higher promotions and wages (serving as a “self-serving bias”), it also imposes higher effort costs and discourages peers, which can make it self-defeating in certain contexts. |
| Keywords: | overconfidence; promotion; competition; gender gap; tournament; theory |
| JEL: | C72 D91 J16 J24 M51 M52 |
| Date: | 2024–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2024_021 |
| By: | Ludger Woessmann (LMU Munich and ifo Institute Munich) |
| Abstract: | The multitude of tasks performed in the labor market requires skills in many dimensions. Traditionally, human capital has been proxied primarily by educational attainment. However, an expanding body of literature highlights the importance of various skill dimensions for success in the labor market. This paper examines the returns to cognitive, personality, and social skills as three important dimensions of basic skills. Recent advances in text analysis of online job postings and professional networking platforms offer novel methods for assessing a wider range of applied skill dimensions and their labor market relevance. A synthesis and integration of the evidence on the relationship between multidimensional skills and earnings, including the matching of skill supply and demand, will enhance our understanding of the role of human capital in the labor market. |
| Keywords: | skills; human capital; education; labor market; earnings; tasks; cognitive skills; personality; social skills; multidimensional skills; |
| JEL: | J24 I26 |
| Date: | 2024–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:rco:dpaper:514 |
| By: | Silke Anger; Jacopo Bassetto; Malte Sandner |
| Abstract: | While Western countries worry about labor shortages, their institutional barriers to skill transferability prevent immigrants from fully utilizing foreign qualifications. Combining administrative and survey data in a difference-in-differences design, we show that a German reform, which lifted these barriers for non-EU immigrants, led to a 15 percent increase in the share of immigrants with a recognized foreign qualification. Consequently, non-EU immigrants' employment and wages in licensed occupations (e.g., doctors) increased respectively by 18.6 and 4 percent, narrowing the gaps with EU immigrants. Despite the inflow of non-EU immigrants in these occupations, we find no evidence of crowding out or downward wage pressure for natives. |
| Keywords: | Skill Transferability, Occupational Recognition, Immigrant Integration |
| JEL: | J24 J31 J62 F22 |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:498 |
| By: | José L. Casco; León Fernández Bujanda; Laura Kurczyn |
| Abstract: | This paper investigates the impact of Mexico's labor outsourcing partial ban on formal workers' labor market outcomes. Using longitudinal administrative data and an event-study framework, we analyze the evolution of employment and wages before and after the reform. The findings show that post-reform, regularized workers were more likely to retain their positions in the private formal job sector compared to a counterfactual scenario without the reform. Moreover, due to the reform, wages for workers directly affected increased by 3-4%, with significant variation across gender, age, industry, firm size, and region, indicating a heterogeneous response to the reform. These findings underscore the varied impacts of outsourcing restrictions on different segments of the labor market, providing valuable insights into the implications of labor market regulations on employment stability and wage growth. |
| Keywords: | Outsourcing;Formal Workers;Labor Market;Employment;Wages |
| JEL: | J31 J38 J46 J81 K31 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2024-20 |
| By: | Ericson, Thomas (Department of Economics and Statistics); Sjöstrand, Glenn (Department of Social Studies, Linnaeus University, Sweden) |
| Abstract: | The existence of skills shortages in labour markets is a widespread phenomenon observed in various economies and employment sectors. This study explores the relationship between companies' skills shortages and their HR policies and practices targeting older workers, which constitute a part of their overall age management strategy. The study addresses the following key questions: How do skills shortages affect personnel policies and practices for older workers? What are the plausible explanations for the presence or absence of a dependency between skills shortages and HRM strategies tailored for older workers? This study uses data that originates from a web-survey in 2015 among 6 000 establishments in Sweden with at least 10 employees. The survey included questions about the characteristic of the surveyed firms/establishments and HRM policies towards older employees. We perform regression analysis where the outcome variable is coded as a dichotomous variable (logit regression), which allows us to estimate the probability that an employer use a certain age-management measure as a response to the presence of skill shortage, when controlling for the possible effect of the control variables (firm size and industry). We find that skills shortages in combination with an expected firm growth in terms of number of employees increases the probability of measures that aim to delay retirement, by asking workers to delay retirement and/or to restricting early retirement and part-time retirement. When firms do not expect to grow, skills shortages increases the probability of reduced workload for older workers and reduces duties and salary, but this effect is restricted to firms that report a high level of skills among their employees. Other HRM policies are also increasing with skills shortages, such as age limits for irregular working hours, flexible working hours, but in this case only in firms that report a low level of skills among their employees. The results highlight that skills shortages affect firms’ age-management, and that measures are sensitive to firms’ growth-expectations and skill level. The study illuminates the nuanced relationship between skills shortages and specific HR approaches, providing valuable insights into the considerations that shape professional practices within the realm of HR management. |
| Keywords: | Skills shortages; HR policy; Older workers; Retirement |
| JEL: | J24 J26 J53 |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:vxesta:2024_015 |
| By: | Sabrina Lucia Di Addario; Zhexin Feng; Michel Serafinelli |
| Abstract: | This paper presents direct evidence on how firms' innovation is affected by access to knowledgeable labor through co-worker network connections. We use a unique dataset that matches patent data to administrative employer-employee records from "Third Italy"-a region with many successful industrial clusters. Establishment closures displacing inventors generate supply shocks of knowledgeable labor to firms that employ the inventors' previous co-workers. We estimate event-study models where the treatment is the displacement of a "connected" inventor (i.e., a previous coworker of a current employee of the focal firm). We show that the displacement of a connected inventor significantly increases connected inventors' hiring. Moreover, the improved access to knowledgeable workers raises firms innovative activity. We provide evidence supporting the main hypothesized channel of knowledge transfer through firm-to-firm labor mobility by estimating IV specifications where we use the displacement of a connected inventor as an instrument to hire a connected inventor. Overall, estimates indicate that firms exploit displacements to recruit connected inventors and the improved capacity to employ knowledgeable labor within the network increases innovation. |
| Keywords: | social connections, firm-to-firm labor mobility, patents, establishment closure |
| JEL: | J60 O30 J23 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:497 |
| By: | Fabling Richard (Motu Economic and Public Policy Research); David Maré (Motu Economic and Public Policy Research) |
| Abstract: | This study examines whether working in a M?ori-led firm contributes to the earnings of M?ori employees. It uses administrative data for 2005-2020 to identify M?ori-led firms, based on the ethnicity and descent of working proprietors, and using an improved method of measuring descent. Almost 8% of M?ori employees work in M?ori-led firms. Controlling for firm and worker characteristics, we find that M?ori-led firms have slightly lower than average multi-factor productivity and wage levels. The wage effects for M?ori of working in a M?ori-led firm are small but there is some evidence to suggest that moving between M?ori-led firms contributes to wage growth for w?hine M?ori, and that in M?ori-led firms there is stronger pass-through of firm performance to earnings levels for t?ne M?ori. |
| Keywords: | earnings; productivity; M?ori; ethnicity |
| JEL: | J30 J15 J71 J42 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:mtu:wpaper:24_05 |
| By: | Zvonimir Bašić (Adam Smith Business School, University of Glasgow, UK); Stefania Bortolotti (University of Bologna); Daniel Salicath (Norwegian Labour and Welfare Administration); Stefan Schmidt (Max Planck Institute for Research on Collective Goods, Bonn); Sebastian Schneider (Max Planck Institute for Research on Collective Goods, Bonn); Matthias Sutter (Max Planck Institute for Research on Collective Goods, Bonn, University of Cologne, Germany, University of Innsbruck, Austria, IZA Bonn, Germany, and CESifo Munich) |
| Abstract: | Incentives are supposed to increase effort, yet individuals react differently to incentives. We examine this heterogeneity by investigating how personal characteristics, preferences, and socio-economic background relate to incentives and performance in a real effort task. We analyze the performance of 1, 933 high-school students under a Fixed, Variable, or Tournament payment. Productivity and beliefs about relative performance, but hardly any personal characteristics, play a decisive role for performance when payment schemes are exogenously imposed. Only when given the choice to select the payment scheme, personality traits, economic preferences and socioeconomic background matter. Algorithmic assignment of payment schemes could improve performance, earnings, and utility, as we show. |
| Keywords: | Effort, productivity, incentives, personality traits, preferences, socio-economic background, ability, heterogeneity, sorting, algorithm, lab-in-the-field experiment |
| JEL: | C93 D91 J24 J41 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:mpg:wpaper:2024_13 |
| By: | Gustavo de Souza; Jacob S. Herbstman; Jack Mannion |
| Abstract: | We study how the demand for programming skills has impacted inequality. We create a new dataset with information on wages, employment, and software of Brazilian programmers, covering the period from the birth of information technology (IT) to the rise of artificial intelligence (AI). High-ability, high-wage, and highly educated individuals in key technology hubs are more likely to become programmers. Creating software boosts both wages and career prospects of programmers, especially for those with specialized skills in AI and cybersecurity. These wage gains are concentrated among top programmers, increasing inequality within the profession. Therefore, increased demand for specialized skills in programming has contributed to wage inequality both within the programming field and between programmers and other occupations. |
| Keywords: | technological progress; AI; software |
| JEL: | J23 J24 O33 |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedhwp:99304 |
| By: | Campbell, Romaine A. (Cornell University); Gershenson, Seth (American University); Lindsay, Constance A. (University of North Carolina, Chapel Hill); Papageorge, Nicholas W. (Johns Hopkins University); Rendon, Jessica H. (American University) |
| Abstract: | Workers learn on the job from both repetition and peers. Less understood is how specific types of experience and peer characteristics affect on-the-job learning. This likely differs by context (e.g., occupation, tasks, or roles). Absent such knowledge, it is unclear how to optimally assign workers to tasks and peers. We examine on-the-job learning among elementary school teachers. We focus on white teachers' productivity teaching Black students. We examine specific types of experience and specific types of peers that could lead to rapid productivity gains for white teachers: experience teaching Black students and having Black colleagues. Both lead to significant productivity gains over and above those associated with total teaching experience and access to generally productive peers. This is due to learning, as peer effects are persistent and driven by more effective Black peers. These findings offer insights to improving Black students' educational outcomes when facing a disproportionately white teaching force. More generally, they underscore the importance of understanding whether and how nuanced types of experiences and peers enter the production function and drive on-the-job human capital accumulation. |
| Keywords: | peer effects, knowledge spillovers, teacher effectiveness, teacher diversity, achievement gaps, education production function, learning-by-doing, human capital |
| JEL: | I2 J24 D2 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17576 |
| By: | Summerfield, Fraser |
| Abstract: | We document the long-run labor market consequences of youth bully victimization using NLSY97 data. Career outcomes measured at ages 19-40 account for life cycle bias. Victims exhibit lower earnings, lower job satisfaction and hold less-complex occupations. Fewer hours worked and shorter job tenure contribute to cumulative experience gaps that widen with age. Female respondents and adolescent victims are most significantly affected. A decomposition exercise shows that concurrent life-cycle health and education penalties explain half of the observed career penalties. Using household fixed-effects models and rich early-life covariates we show that selection into bullying on these dimensions cannot explain earnings penalties. Our results suggest a role for programs and policies that reduce health and human capital disparities of those bullied during youth. |
| Keywords: | Bullying, Life-cycle outcomes, Earnings, Non-cognitive skills, Human Capital |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:clefwp:306847 |
| By: | Huanan Xu; Joseph R. Blasi; Douglas L. Kruse; Richard B. Freeman |
| Abstract: | To what extent, if at all, did employee-owned (EO) firms maintain jobs for workers compared to non-EO firms in the spring 2020 Covid-19 shock to the US economy? Did EO firms shift jobs from workplaces to work-from-home locations in the pandemic more or less than other firms? This paper uses a unique survey of nearly 750 firms that differ in the Employee Stock Ownership Plan (ESOP) mode of employee ownership to answer these questions. The analysis finds that in the Covid crisis ESOPs with majority ownership of their firm maintained proportionately more jobs and shifted work to workers’ homes more than other firms and that these differences scale with the ESOP percentage of firm ownership. The findings are consistent with a model of firm decision-making in which ESOP firms weigh the well-being of employee-owners as workers in the firm in a job crisis while non-ESOP firms view workers solely as a costly input in production in maximizing the income of their (non-employee) owners. |
| JEL: | D2 D7 J2 J3 J4 L2 M5 P13 P5 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33310 |
| By: | Lorenzo Aldeco Leo; Alejandrina Salcedo |
| Abstract: | We show that in Mexico larger shares of potential remote work at the municipality level are related to lower post-pandemic employment in high-proximity consumer services, a relatively large sector that mainly employs low-income workers. We use a triple difference event study design where we compare employment in high and low proximity sectors across municipalities with different levels of remote work potential, before and after the pandemic. Our results contribute to explain the relatively weak recovery in high proximity employment in the central region of the country, where at the start of the pandemic a larger proportion of high-proximity services located where remote work potential was high, relative to other regions. The analysis highlights that with the pandemic the sectoral distribution of employment has changed, and that the effects on workers depend on their capacity to adjust to the new labor market. |
| Keywords: | Remote work;Consumer services;Middle-income;Triple-differences |
| JEL: | O33 R11 J20 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2024-17 |
| By: | Mehic, Adrian (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This paper examines the long-term effects of early sports selection using a regression discontinuity design. I show that Swedish track and field athletes who qualified for a one-time appearance with the junior national team at age 17 are less likely to quit sports and more likely to improve their performance. Several years later, although few make a living from sports, selected athletes have earned more college credits and are more successful on the marriage market. I show that early sports selection fosters grit and resilience, leading to lower dropout rates and positive spillovers in other areas of life. |
| Keywords: | Sports; Skills; Human capital formation; Academic outcomes; Marriage market |
| JEL: | I12 J24 L83 Z13 Z22 |
| Date: | 2024–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1513 |
| By: | Youngsoon Kwon (Bank of Korea); Myungkyu Shim (Yonsei University); Hee-Seung Yang (Yonsei University) |
| Abstract: | Does the COVID-19 crisis accelerate automation? We investigate this question by analyzing employment trends based on occupational COVID-19 exposure and automation potential, key factors influencing post-pandemic automation. Using micro-level data from South Korea (2016–2022), we find a persistent decline in employment for occupations with high exposure and high automatability since the pandemic outbreak. In contrast, other occupations have largely recovered to pre-pandemic employment levels after an initial decline. These findings suggest that the pandemic has incentivized firms to adopt labor-replacing technologies to mitigate the business risks associated with viral transmission. |
| Keywords: | Automation, COVID-19, Employment, Technology adoption, South Korea |
| JEL: | E24 I15 J21 O33 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:yon:wpaper:2024rwp-236 |
| By: | Maaß, Christina Heike |
| Abstract: | With economists suggesting to increase labor market participation to counter demographic changes and skills shortages, contrary to the recently increased awareness of work-life balance, the question arises as to how much of the previously unexploited labor supply can actually be activated and pushed into full-time positions. In this paper, we empirically analyze the intentions of the underemployed and inactive individuals based on a sound theoretical analysis. By firstly exploring responses to the EU Labor Force Survey and the German microcensus, we find changes in labor supply behavior over time. The results are corroborated and extended by novel search data from Google Trends, which provide further details on the increasing preferences for fewer working hours and part-time work implicitly expressed via the search engine. We identify the overestimation of the labor force potential in Germany to be substantial and realistically assume a limited potential to activate the unexploited workforce. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:uhhwps:307611 |
| By: | Michel Beine; Giovanni Peri; Morgan Raux |
| Abstract: | In this paper, we estimate the effect of increasing the share of foreign-born Master graduates on the creation of innovative start-ups in the US. We combine information on international students graduating from Master's programs by university cohort with data on start-ups created in the US between 1999 and 2020 by graduates of those cohorts. To establish a causal link, we use idiosyncratic variation in out-of-state relative to in-state fees charged by universities across Master's cohorts, resulting in differential foreign students' enrollment. We also use changes in the share of foreign students predicted by a shift-share instrument, based on university-level past networks, as an additional identification strategy. For each additional ten percentage points of foreign students graduating in a Master's cohort, we find 0.4 additional start-ups in that cohort. Then, using a name-based attribution of the origin of creators of start-ups, we find that between 30 and 45% of the total start-up creation effect is attributable to a positive spillover of foreign-born on start-up founders of US origin. |
| JEL: | F22 M13 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33314 |
| By: | Enrico Fornasiero (Ca’ Foscari University of Venice) |
| Abstract: | This research studies the role of the Non-Governmental Sector on household economic outcomes by analysing the impact of receiving support from Non-Governmental Organisations (NGOs) on children's food security and time-use in Ethiopia. I exploit the implementation timing of a restrictive NGO law to solve the potential endogeneity concerns by defining a two-stage model. I find evidence that receiving NGO support increases children's time spent on income-generating activities, reducing the number of hours dedicated to household chores. These effects are mainly due to children who either live in the poorest households, in rural communities, or in a family in which the primary occupation of the household head is agriculture. Notably, receiving support from an NGO increases the time children spend in education only for female-headed households. |
| Keywords: | Non-Governmental Organisation, Children, Food Security, Time Use, Ethiopia |
| JEL: | I25 I31 J13 J24 L31 O12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2024:18 |
| By: | Kauhanen, Antti; Maczulskij, Terhi; Riukula, Krista; Ropponen, Olli |
| Abstract: | Abstract This report deals with foreign talent in Finland. The report begins by discussing Finland’s attractiveness from the perspective of foreign talent and considering what Finland’s strengths are and what needs to be developed in Finland to make Finland more attractive. After this, foreign experts are studied in Finland and it is determined what kind of tasks they work in, how long they stay in Finland and how their careers develop. The potential discrimination of foreign workers is also examined in connection with mass layoffs. Various special tax solutions have been used to attract foreign talent, and the report also describes these solutions and considers how the Key Employee Act could be developed in Finland. Finland has sought to improve the chances of successful international recruitment by speeding up permit processes and increasing recruitment activities in certain focus countries. We will also consider these policy measures in the light of statistics. |
| Keywords: | Immigration, Foreign professionals |
| JEL: | J61 J31 D24 |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:154 |
| By: | Gajderowicz, Tomasz (University of Warsaw); Jakubowski, Maciej (University of Warsaw); Kennedy, Alec (International Association for the Evaluation of Educational Achievement); Christrup, Christian (Aarhus University); Patrinos, Harry Anthony (University of Arkansas, Fayetteville); Strietholt, Rolf (International Association for the Evaluation of Educational Achievement) |
| Abstract: | The COVID-19 pandemic caused widespread disruptions to education, with school closures affecting over one billion children. These closures, aimed at reducing virus transmission, resulted in significant learning losses, particularly in mathematics and science. Using data from TIMSS 2023, which assesses fourth and eighth-grade achievements across 71 education systems, this study analyzes the impact of school closure duration on learning outcomes. Mixed-effect models estimate deviations from pre-pandemic trends, adjusting for demographic factors. Results show a global average decline of 0.11 standard deviations (SD) in student achievement, with longer closures linked to more severe losses. The effects on low performers, girls, and linguistic minorities show effect sizes up to 0.22 SD. These findings highlight the lasting impact of school closures and emphasize the need for targeted recovery strategies and international cooperation to promote equitable educational outcomes post-pandemic. |
| Keywords: | pandemics, human capital, returns to education, labor markets, COVID-19 |
| JEL: | E24 J11 J17 J31 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17550 |