Institute for the Study of Labor

Displaying 1-40 of 687 results

  • White Papers // Aug 2011

    Integrating Personality Psychology Into Economics

    This paper reviews the problems and potential benefits of integrating personality psychology into economics. Economists have much to learn from and contribute to personality psychology. What can economists learn from and contribute to personality psychology? What do we learn from personality psychology? Personality traits predict many behaviors - sometimes with...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Search, Effort, And Locus Of Control

    The authors test the hypothesis that locus of control - one's perception of control over events in life - influences search by affecting beliefs about the efficacy of search effort in a laboratory experiment. They find that reservation offers and effort are increasing in the belief that one's efforts influence...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Teachers~ Salaries In Latin America: How Much Are They (Under Or Over) Paid?

    This paper documents the extent to which teachers are underpaid vis-?-vis workers in other professional and technical occupations in Latin America circa 2007. These labor earnings differences, attributed to observable socio-demographic and job characteristics, are assessed using a matching methodology (?opo, 2008). Teachers' underpayment is found to be stronger than...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Causal Effect Of Education On Health: What Is The Role Of Health Behaviors?

    In this paper, the authors investigate the contribution of health related behaviors to the education gradient, using an empirical approach that addresses the endogeneity of both education and behaviors in the health production function. They apply this approach to a multi-country data set, which includes 12 European countries and has...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Stability Of Big-five Personality Traits

    The authors use a large, nationally-representative sample of working-age adults to demonstrate that personality (as measured by the Big Five) is stable over a four-year period. Average personality changes are small and do not vary substantially across age groups. Intra-individual personality change is generally unrelated to experiencing adverse life events...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Underreporting Of Earnings And The Minimum Wage Spike

    This paper documents a positive correlation within European labor markets between the proportion of full-time employees with earnings on the minimum wage and the extent of underreporting of earnings in the economy. Using a simple model of a competitive labor market, the author shows how this correlation can emerge as...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Effect Of Variable Pay Schemes On Workplace Absenteeism

    The authors estimate the effect of variable pay schemes on workplace absenteeism using two cross sections of British establishments. Private sector establishments that explicitly link pay with individual performance are found to have significantly lower absence rates. This effect is stronger for establishments that offer variable pay schemes to a...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Gender Gaps Across Countries And Skills: Supply, Demand And The Industry Structure

    The gender wage gap varies widely across countries and across skill groups within countries. Interestingly, there is a positive cross-country correlation between the unskilled-to-skilled gender wage gap and the corresponding gap in hours worked. Based on a canonical supply and demand framework, this positive correlation would reveal the presence of...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Social Interactions In The Labor Market

    The authors examine theoretically and empirically social interactions in labor markets and how policy prescriptions can change dramatically when there are social interactions present. Spillover effects increase labor supply and conformity effects make labor supply perfectly inelastic at a reference group average. The demand for a good may also be...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Minimum Wages And Teen Employment: A Spatial Panel Approach

    The authors employ spatial econometrics techniques and Annual Averages data from the U.S. Bureau of Labor Statistics for 1990-2004 to examine how changes in the minimum wage affect teen employment. Spatial econometrics techniques account for the fact that employment is correlated across states. Such correlation may exist if a change...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Trend Over Time Of The Gender Wage Gap In Italy

    The authors analyze gender wage inequalities in Italy in the mid-1990s and in the mid-2000s. In this period important labour market developments occurred: institutional changes have loosened the use of flexible and atypical contracts; the female employment rates and educational levels have substantially increased. They identify the time trends of...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Real Exchange Rate, Foreign Trade And Employment: Evidence From China

    Coordination of macro-economic development and employment is an essential issue for China's social development, which largely depends on economic expansion, as well as integration into the global market to create jobs. Through the literature review and empirical test, this paper analyzes the relationship between macro-economic policy and employment, and discusses...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Taxes, Wages And Working Hours

    This paper presents estimates of individuals' responses in hourly wages to changes in marginal tax rates. Estimates based on register panel data of Swedish households covering the period 1992 to 2007 produce significant but relatively small net-of-tax rate elasticities. The results vary with family type, with the largest elasticities obtained...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Elasticity Of Supply To The Firm And The Business Cycle

    A body of recent empirical work has found strong evidence that the labor elasticity of supply to the firm is finite, implying that firms may have wage setting power. However, these studies capture only snapshots of the parameter. The authors study this parameter over a period that provides substantial variation...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Multidimensional Affluence: Theory And Applications To Germany And The US

    This paper suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. The authors illustrate this by analyzing the role of income and...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Exports, Imports And Firm Survival: First Evidence For Manufacturing Enterprises In Germany

    This paper documents the relationship between firm survival and three types of international trade activities - exports, imports and two-way trade. It uses unique new representative data for manufacturing enterprises from Germany, one of the leading actors on the world market for goods, that merge information from surveys performed by...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Use Of Violence In Illegal Markets: Evidence From Mahogany Trade In The Brazilian Amazon

    Agents operating in illegal markets cannot resort to the justice system to guarantee property rights, to enforce contracts, or to seek protection from competitors' improper behaviors. In these contexts, violence is used to enforce previous agreements and to fight for market share. This relationship plays a major role in the...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Access To Justice And Entrepreneurship: Evidence From Brazil's Special Civil Tribunals

    Entrepreneurship is usually identified as an important determinant of aggregate productivity and long-term growth. The determinants of entrepreneurship, nevertheless, are not entirely understood. A recent literature has linked entrepreneurship to the development of the justice system. This paper contributes to this literature by evaluating the role of access to justice...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    International Trade And Firm Performance: A Survey Of Empirical Studies Since 2006

    The literature on international trade and firm performance grows exponentially. This paper attempts to summarize what we learn from this literature to guide both future empirical and theoretical work in this area, and public debates and policy makers, in an evidence-based way. The focus is on the empirical part of...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Job Re-grading, Real Wages, And The Cycle

    This paper makes use of the British New Earnings Survey Panel Dataset between 1976 and 2010. It consists of individual-level payroll data and comprises a random sample of 1% of the entire male and female labor force. About two-thirds of within- and between-company moves involve job re-grading (measured at 3-digit...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Tax Policy And Income Inequality In The U.S., 1978-2009: A Decomposition Approach

    The authors assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows them to disentangle mechanical effects due to changes in pre-tax incomes from direct effects of policy reforms. While tax reforms implemented under Democrat administrations, in particular the EITC reforms in...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Income Inequality, Mobility, And The Welfare State: A Political Economy Model

    In this paper, the authors set up a three-period stochastic overlapping generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. They model the size of two different public programs under the welfare state. They investigate bidimensional voting on the tax rates...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    R&D And Employment: Some Evidence From European Microdata

    After discussing theory regarding the consequences of technological change on employment and surveying previous microeconometric literature, the authors' aim with this paper is to test the possible job creation effect of business R&D expenditures, using a unique longitudinal database covering 677 European manufacturing and service firms over the period 1990-2008....

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Labor Markets And Labor Market Institutions In Transition Economies

    This paper summarizes the evolution of labor markets and labor market institutions and policies in the countries of Central and Eastern Europe as well as of Central Asia over the last two decades. The main focus is on the evolution of labor market institutions, which are among candidate explanations for...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Enforcement Of Labor Regulation And Informality

    Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. The authors show that, in locations with frequent inspections workers pay for mandated benefits by...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Health And Economic Development: Evidence From The Introduction Of Public Health Care

    This paper investigates the causal effect of changes in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. The authors document...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    How Policy Changes Affect Shareholder Wealth: The Case Of The Fukushima Daiichi Nuclear Disaster

    This paper analyzes how policy changes affect shareholder wealth in the context of environmental regulation. The authors exploit the unique and unexpected German reaction to the Fukushima Daiichi nuclear disaster, which involved the immediate shutdown of almost half of Germany's nuclear reactors while safety checks were carried out, and a...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Economic Conditions At The Time Of Birth And Cognitive Abilities Late In Life: Evidence From Eleven European Countries

    With ageing populations and a stronger reliance on individual financial decision-making concerning asset portfolios, retirement schemes, pensions and insurances, it becomes increasingly important to understand the determinants of cognitive ability among the elderly. Macro-economic recession and boom periods provide a unique opportunity to study the effect of changes in the...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Conflict And Its Impact On Educational Accumulation And Enrollment In Colombia: What We Can Learn From Recent IDPS

    Forty years of low-intensity internal armed conflict has made Colombia home to the world's second largest population of Internally Displaced Persons (IDPs). The effect of being directly impacted by conflict on a child's educational accumulation and enrollment is of particular concern because of the critical role that education plays in...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Does It Pay To Be Productive? The Case Of Age Groups

    Using longitudinal matched employer-employee data for the period 1999-2006, the authors investigate the relationship between age, wage and productivity in the Belgian private sector. More precisely, they examine how changes in the proportions of young (16-29 years), middle-aged (30-49 years) and older (more than 49 years) workers affect the productivity...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Wage Dispersion And Labor Turnover With Adverse Selection

    The authors consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers in...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Teachers' Salaries In Latin America: How Much Are They (Under Or Over) Paid?

    This paper documents the extent to which teachers are underpaid vis-?-vis workers in other professional and technical occupations in Latin America circa 2007. These labor earnings differences, attributed to observable socio-demographic and job characteristics, are assessed using a matching methodology (?opo, 2008). Teachers' underpayment is found to be stronger than...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Parental Job Loss And Children's Health: Ten Years After The Massive Layoff Of The SOEs' Workers In China

    Beginning in the mid 1990s, China sped up its urban labor market reform and drastically restructured its State-Owned Enterprises (SOEs), which resulted in massive layoff of the SOEs' workers and a high unemployment rate. In this paper, the authors investigate the impact of the parents' job loss on the health...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Detecting Mortgage Delinquencies

    Economic hardship is strongly reflected by the housing market. It is the concern of much research, but its analysis is often obstructed by insufficient lagged data. This paper evaluates search intensity for "Hardship letter" from Google Insights to detect ensuing mortgage delinquencies. Such searches locate documents which assist to write...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Role Selection And Team Performance

    Team success relies on assigning team members to the right tasks. The authors use controlled experiments to study how roles are assigned within teams and how this affects team performance. Subjects play the takeover game in pairs consisting of a buyer and a seller. Understanding optimal play is very demanding...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Manipulation Of Choice Behavior

    The authors introduce and study the problem of manipulation of choice behavior. In a class of two-stage models of decision making, with the agent's choices determined by three "Psychological variables," they imagine that a subset of these variables can be selected by a "Manipulator." To what extent does this confer...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Substitution Between Individual And Cultural Capital: Pre-migration Labor Supply, Culture And US Labor Market Outcomes Among Immigrant Woman

    In this paper, the authors use New Immigrant Survey data to investigate the impact of immigrant women's own labor supply prior to migrating and female labor supply in their source country to provide evidence on the role of human capital and culture in affecting their labor supply and wages in...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    China's Emergence In The World Economy And Business Cycles In Latin America

    The international business cycle is very important for Latin America's economic performance as the recent global crisis vividly illustrated. This paper investigates how changes in trade linkages between China, Latin America, and the rest of the world have altered the transmission mechanism of international business cycles to Latin America. Evidence...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Surviving The Crisis: Foreign Multinationals Vs Domestic Firms In Ireland

    Starting from the observation that all firms in Ireland (foreign and domestic in manufacturing and services industries) were hit by the crisis, the paper asks whether there is a difference in the behaviour of foreign and domestic firms. One hypothesis is that foreign multinationals are less linked into the Irish...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    On Input Market Frictions And Estimation Of Factors Demand

    In this paper, the authors explore the impact of imperfectly competitive input markets on production function estimation. First order profit maximizing conditions are altered when frictions in input markets cause the elasticity of input supply to the firm to be finite. A consequence of this is that the standard econometric...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Short-time Work: The German Answer To The Great Recession

    Short-time work was the "German answer" to the economic crisis. The number of short-time workers strongly increased in the recession and peaked at more than 1.5 million. Without the extensive use of short-time work, unemployment would have risen by approximately twice as much as it actually did. Short-time work has...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Wage Rigidity And Disinflation In Emerging Countries

    This paper examines the consequences of rapid disinflation for downward wage rigidities in two emerging countries, Brazil and Uruguay, relying on high quality matched employer-employee administrative data. Downward nominal wage rigidities are more important in Uruguay, while wage indexation is dominant in Brazil. Two regime changes are observed during the...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Referral-based Job Search Networks

    This paper develops a model and derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential job market candidates that they otherwise would not have. Using unique matched employer-employee data that cover the entire workforce in one large metropolitan labor market over...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Mandated Severance Pay And Firing Cost Distortions: A Critical Review Of The Evidence

    Severance pay mandates are an appealing job displacement insurance strategy in developing countries, which have only modest government administrative capacities, but they carry the threat of adverse indirect effects. A critical review of the empirical literature reveals that severance benefit mandates, unaccompanied by other labor regulations, have little apparent impact...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Social Contacts And The Economic Performance Of Immigrants: A Panel Study Of Immigrants In Germany

    Using data from the German Socio-Economic Panel, the authors examined the impact of social contacts on immigrant occupational status and income. In addition to general social contacts, they also analyzed the effects of bonding (i.e., co-ethnic) and bridging (i.e., interethnic) ties on economic outcomes. Results show that general social contacts...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    The Roles Of Incentives And Voluntary Cooperation For Contractual Compliance

    Efficiency under contractual incompleteness often requires voluntary cooperation in situations where self-regarding incentives for contractual compliance are present as well. Here the authors provide a comprehensive experimental analysis based on the gift-exchange game of how explicit and implicit incentives affect cooperation. They first show that there is substantial cooperation under...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    For Benevolence And For Self-interest: Social And Commercial Entrepreneurial Activity Across Nations

    The authors conceptualize social entrepreneurship as a source of social capital which, when present in the environment, enhances commercial entrepreneurship. They also argue that social entrepreneurship should be recognized as a second form of Baumol's (1990) productive entrepreneurship and that it will therefore compete at the individual level for resources...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    The Shadow Economy And Shadow Economy Labor Force: What Do We (Not) Know?

    In this paper the main focus lies on the development and the size of the shadow economy and of undeclared work (or shadow economy labor force) in OECD, developing and transition countries. Besides informal employment in the rural and non-rural sector also other measures of informal employment like the share...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Human Capital And Career Success: Evidence From Linked Employer-Employee Data

    Denmark's registry data provide accurate and complete career history data along with detailed personal characteristics (e.g., education, gender, work experience, tenure and others) for the population of Danish workers longitudinally. By using such data from 1992 to 2002, the authors provide rigorous evidence for the first time for the population...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    The Future Of Retirement And The Pension System: How The Public's Expectations Vary Over Time And Across Socio-economic Groups

    The authors analyze expectations of the Dutch population of ages 25 and older concerning the future generosity state and occupational pensions, the two main pillars of the Dutch pension system. Since the summer of 2006, monthly survey data were collected on the expectations of Dutch households concerning purchasing power of...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    A Steady-state Model Of A Non-Walrasian Economy With Three Imperfect Markets

    Unemployment may depend on equilibrium in other markets than the labor markets. This paper addresses this old idea by introducing search frictions on several markets: in a model of credit and labor market imperfections as in Wasmer and Weil (2004), the author further introduce search on the goods market. The...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Mobility, Taxation And Welfare

    Income mobility is often thought to equalize permanent incomes and thereby to improve social welfare. The welfare analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent incomes. This paper assesses the net welfare benefit of mobility by assuming both a...

    Provided By Institute for the Study of Labor

  • White Papers // May 2011

    Assessing The Long-term Effects Of Conditional Cash Transfers On Human Capital: Evidence From Colombia

    Conditional Cash Transfers (CCT) are programs under which poor families get a stipend provided they keep their children in school and take them for health checks. While there is significant evidence showing that they have positive impacts on school participation, little is known about their long-term impacts on human capital....

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Integrating Personality Psychology Into Economics

    This paper reviews the problems and potential benefits of integrating personality psychology into economics. Economists have much to learn from and contribute to personality psychology. What can economists learn from and contribute to personality psychology? What do we learn from personality psychology? Personality traits predict many behaviors - sometimes with...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Search, Effort, And Locus Of Control

    The authors test the hypothesis that locus of control - one's perception of control over events in life - influences search by affecting beliefs about the efficacy of search effort in a laboratory experiment. They find that reservation offers and effort are increasing in the belief that one's efforts influence...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Teachers~ Salaries In Latin America: How Much Are They (Under Or Over) Paid?

    This paper documents the extent to which teachers are underpaid vis-?-vis workers in other professional and technical occupations in Latin America circa 2007. These labor earnings differences, attributed to observable socio-demographic and job characteristics, are assessed using a matching methodology (?opo, 2008). Teachers' underpayment is found to be stronger than...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Causal Effect Of Education On Health: What Is The Role Of Health Behaviors?

    In this paper, the authors investigate the contribution of health related behaviors to the education gradient, using an empirical approach that addresses the endogeneity of both education and behaviors in the health production function. They apply this approach to a multi-country data set, which includes 12 European countries and has...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Stability Of Big-five Personality Traits

    The authors use a large, nationally-representative sample of working-age adults to demonstrate that personality (as measured by the Big Five) is stable over a four-year period. Average personality changes are small and do not vary substantially across age groups. Intra-individual personality change is generally unrelated to experiencing adverse life events...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Underreporting Of Earnings And The Minimum Wage Spike

    This paper documents a positive correlation within European labor markets between the proportion of full-time employees with earnings on the minimum wage and the extent of underreporting of earnings in the economy. Using a simple model of a competitive labor market, the author shows how this correlation can emerge as...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Effect Of Variable Pay Schemes On Workplace Absenteeism

    The authors estimate the effect of variable pay schemes on workplace absenteeism using two cross sections of British establishments. Private sector establishments that explicitly link pay with individual performance are found to have significantly lower absence rates. This effect is stronger for establishments that offer variable pay schemes to a...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Is Earnings Uncertainty Relevant For Educational Choice? An Empirical Analysis For China

    The authors use the method of Dominitz and Manski (1996) to solicit anticipated wage distributions for continuing to a Master degree or going to work after completing the Bachelor degree. The means of the distributions have an effect on intention to continue as predicted by theory. The dispersions in these...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Labor Disputes And Labor Flows

    About one in four workers challenges her dismissal in front of a labor court in France. Using a data set of individual labor disputes brought to French courts over the years 1996 to 2003, the authors examine the impact of labor court activity on labor market flows. First, they present...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Immigration And Innovation In European Regions

    The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper, the authors measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose,...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Young People And The Great Recession

    This paper reviews the effects of the Great Recession on youth labour markets. The authors argue that young people aged 16-24 have suffered disproportionately during the recession. Using the USA and UK as case studies, they analyze youth unemployment using microdata. They argue that there is convincing evidence that the...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Youth Unemployment In Europe And The United States

    This paper focuses particularly on youth unemployment, why we should be concerned about it, why it is increasing again, how the present difficulties of young people entering the labour market differ from those of the past and what useful lessons have been learned that may guide future policy. The authors...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    The Effect Of Product Market Competition On Job Instability

    This paper assesses the impact of product market competition on job instability as proxied by the use of fixed-term labor contracts. Using both worker data from the Spanish Labor Force Survey and firm data from the Spanish Business Strategies Survey, the author shows that job instability rises with competition. In...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    The Impact Of Worker Effort On Public Sentiment Towards Temporary Migrants

    Temporary and circular migration programs have been devised by many destination countries and supported by the European Commission as a policy to reduce welfare and social costs of immigration in destination countries. In this paper, the authors present an additional reason for proposing temporary migration policies based on the characteristics...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Total Reward In The UK In The Public And Private Sectors

    Recent controversy has surrounded the relative value of public and private sector remuneration. The authors define a comprehensive measure of Total Reward (TR) which includes not just pay, but pensions and other 'Benefits in kind', evaluate it as the present value of the sum of all these payments over the...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Labor Mobility, Social Network Effects, And Innovative Activity

    The authors study the mapping between labor mobility and industrial innovative activity for the population of R&D active Danish firms observed between 1999 and 2004. Their study documents a positive relationship between the number of workers who join a firm and the firm's innovative activity. This relationship is stronger if...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Subject Choice And Earnings Of UK Graduates

    Using a survey of a cohort of UK graduates, linked to administrative data on higher education participation, this paper investigates the labor market attainment of recent graduates by subject of study. The authors document a large heterogeneity in the mean wages of graduates from different subjects and a considerably larger...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    China's Latent Human Capital Investment: Achieving Milestones And Competing For The Top

    In this paper, the authors provide an overview of China's human capital strategy and educational achievements over the last two decades. While every one acknowledges China as an economic superpower, very few are aware of or realize China's notable achievements in education as well as its internationalization of education. Since...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Democratization, Violent Social Conflicts, And Growth

    This paper investigates the empirical role of violent conflicts for the causal effect of democracy on economic growth. Exploiting within-country variation to identify the effect of democratization during the "Third Wave", the authors find evidence that the effect of democratization is weaker than reported previously once one accounts for the...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Optimal Redistributive Taxation With Both Labor Supply And Labor Demand Responses

    This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework with endogenous (voluntary) nonparticipation and (involuntary) unemployment. The optimal employment tax rate is given by an inverse employment elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Worktime Regulations And Spousal Labour Supply

    The authors investigate spillovers in spousal labour supply exploiting independent variation in hours worked generated by the introduction of the shorter workweek in France in the late 1990s. They find that female and male employees treated by the shorter legal workweek reduce their weekly labour supply by about 2 hours,...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Does Female Empowerment Promote Economic Development?

    Empirical evidence suggests that money in the hands of mothers (as opposed to their husbands) benefits children. Does this observation imply that targeting transfers to women is good economic policy? The authors develop a series of noncooperative family bargaining models to understand what kind of frictions can give rise to...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Short-time Work Benefits Revisited: Some Lessons From The Great Recession

    The Great Recession triggered a resurgence of Short-Time Work (STW) throughout the OECD. Several countries introduced from scratch STW or significantly expanded the scope of the programmes already in place. In some countries like Italy, Japan and Germany between 2.5 and 5 per cent of the workforce participated in short-time...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    The Turkish Wage Curve: Evidence From The Household Labor Force Survey

    This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005-2008. When the local unemployment rate is treated as predetermined, there is evidence in favor of the wage curve only for younger and female workers. However,...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    The Effects Of Active Labour Market Policies For Immigrants Receiving Social Assistance In Denmark

    The authors estimate the effect of active labour market programmes on the exit rate to regular employment for non-western immigrants in Denmark who receive social assistance. They use the timing-of-events duration model and rich administrative data. They find large positive post-programme effects, and, surprisingly, even most in-programme effects are positive....

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Two Economists? Musings On The Stability Of Locus Of Control

    Empirical studies of the role of non-cognitive skills in driving economic behavior often rely heavily on the assumption that these skills are stable over the relevant time frame. The authors analyze the change in a specific non-cognitive skill, i.e. locus of control, in order to directly assess the validity of...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2011

    Are Self-employed Really Happier Than Employees? An Approach Modelling Adaptation And Anticipation Effects To Self-employment And General Job Changes

    Empirical analyses using cross-sectional and panel data found significantly higher levels of job satisfaction for self-employed than for employees. The authors argue that those estimates in previous studies might be biased by neglecting anticipation and adaptation effects. For testing they specify several models accounting for anticipation and adaptation to self-employment...

    Provided By Institute for the Study of Labor