Institute for the Study of Labor

Displaying 1-40 of 689 results

  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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...

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  • 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....

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  • 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...

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  • 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...

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  • 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...

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  • White Papers // Jul 2011

    The Effect Of An Acute Health Shock On Work Behavior: Evidence From Different Health Care Regimes

    The authors study how severe acute health shocks affect the probability of not working in the U. S. versus in Denmark. The results not only provide insight into how relative disease risk affects labor force participation at older ages, but also into how different types of health care and health...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Explaining Differences In Job Search Outcomes Between Employed And Unemployed Job Seekers

    The authors use individual data for Great Britain over the period 1992-2009 to compare the probability that employed and unemployed job seekers find a job and the quality of the job they find. The job finding rate of unemployed job seekers is 50 percent higher than that of employed job...

    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

    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...

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  • 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...

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  • 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...

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  • 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...

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  • 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 // Dec 2009

    On The Rise Of Health Spending And Longevity

    The authors use a calibrated stochastic life-cycle model of endogenous health spending, asset accumulation and retirement to investigate the causes behind the increase in health spending and life expectancy over the period 1965-2005. They estimate that technological change along with the increase in the generosity of health insurance may explain...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    The Effect Of An Acute Health Shock On Work Behavior: Evidence From Different Health Care Regimes

    The authors study how severe acute health shocks affect the probability of not working in the U. S. versus in Denmark. The results not only provide insight into how relative disease risk affects labor force participation at older ages, but also into how different types of health care and health...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2009

    Demand Side Analysis Of Microlending Markets In Germany

    In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services...

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  • White Papers // Feb 2010

    Mortgage Finance In Central And Eastern Europe: Opportunity Or Burden?

    Household credit, especially for mortgages, has doubled over the past years in the new European Union member countries, raising concerns about the economic and social consequences of household indebtedness in the event of a macroeconomic crisis. Using household survey data for 2005, 2006, and 2007 for both old and new...

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  • White Papers // May 2011

    The Value Of Business Networks In Emerging Economies: An Analysis Of Firms' External Financing Opportunities

    The paper argues that networked firms are likely to have an advantage in securing external finance in countries with weak legal and judicial institutions since it helps financial institutions to minimize the underlying agency costs of lending. An analysis of recent BEEPS data from fifteen Central and Eastern European (CEE)...

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  • White Papers // Aug 2008

    Management Economics In A Large Retail Organization

    The authors study the impact of and reward to middle management ability using data from 245 stores of a nationwide retailer. The company scores six broad areas of management practice, the most important of which turns out to be "Commercial awareness", where able managers raise labour productivity by 17% compared...

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  • White Papers // Sep 2010

    Risk Management Among The Poor: The Case Of Microfinancial Services

    This paper argues that the level of financial services provision determines the risk management strategies among the poor. The paper estimates the determinants of the household's use of one, two or all three types of microfinancial services applying ordered probit models and additionally probit models for combinations of them. By...

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  • White Papers // May 2009

    Present-Biased Preferences And Credit Card Borrowing

    Some individuals borrow extensively on their credit cards. This paper tests whether present biased time preferences correlate with credit card borrowing. In a field study, the authors elicit individual time preferences with incentivized choice experiments, and match resulting time preference measures to individual credit reports and annual tax returns. The...

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  • White Papers // Mar 2010

    Gambling And The Use Of Credit: An Individual And Household Level Analysis

    The authors explore the relationship between gambling and other forms of risk-taking behaviour, i.e. exposure to debt and the use of credit, at the individual and household level using representative pooled cross-section data drawn from the UK Expenditure and Food Surveys (EFS), 2001 to 2007. Gambling and the use of...

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  • White Papers // Oct 2008

    Are Women More Credit Constrained? Experimental Evidence On Gender And Microenterprise Returns

    In a recent randomized experiment the authors found mean returns to capital of between 5 and 6 percent per month in Sri Lankan microenterprises, much higher than market interest rates. But returns were found to be much higher among men than among women, and indeed were not different from zero...

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  • White Papers // May 2010

    Who Benefits From The Earned Income Tax Credit? Incidence Among Recipients, Coworkers And Firms

    How are hourly wages affected by the Earned Income Tax Credit? Using variation in state EITC supplements, the author finds that a 10 percent increase in the generosity of the EITC is associated with a 5 percent fall in the wages of high school dropouts and a 2 percent fall...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2009

    Reputation And Credit Market Formation: How Relational Incentives And Legal Contract Enforcement Interact

    The evidence suggests that relational contracting and legal rules play an important role in credit markets but on the basis of the prevailing field data it is difficult to pin down their causal impact. Here the authors show experimentally that relational incentives are a powerful causal determinant for the existence...

    Provided By Institute for the Study of Labor

  • White Papers // Dec 2009

    Financial Dependence, Formal Credit, And Informal Jobs: New Evidence From Brazilian Household Data

    This paper examines a much overlooked link between credit markets and formalization: since access to bank credit typically requires compliance with tax and employment legislation, firms are more likely to incur such formalization costs once bank credit is more widely available at lower cost; if so, well-functioning credit markets help...

    Provided By Institute for the Study of Labor

  • White Papers // Sep 2008

    Evaluation Of An In-Work Tax Credit Reform In Sweden: Effects On Labor Supply And Welfare Participation Of Single Mothers

    The purpose of this paper is to evaluate a recent Swedish in-work tax credit reform where the people pay particular attention to labor market exclusion; i.e. individuals in as well as outside the labor force are included in the analysis. To highlight the importance of the joint effects from the...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2011

    Macroeconomic Dynamics In A Model Of Goods, Labor And Credit Market Frictions

    Building a model with three imperfect markets - goods, labor and credit - representing a product's life-cycle, the authors find that goods market frictions drastically change the qualitative and quantitative dynamics of labor market variables. The calibrated model leads to a significant reduction in the gap with the data, both...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Explaining Differences In Job Search Outcomes Between Employed And Unemployed Job Seekers

    The authors use individual data for Great Britain over the period 1992-2009 to compare the probability that employed and unemployed job seekers find a job and the quality of the job they find. The job finding rate of unemployed job seekers is 50 percent higher than that of employed job...

    Provided By Institute for the Study of Labor

  • White Papers // Oct 2010

    Is Social Security Secure With NDC?

    The introduction of NDC public pension scheme in few European countries, such as Latvia, Sweden, Italy, and Poland, in the nineties was motivated, among other things, by the need to ensure the long term financial sustainability of the public pension system by linking pension returns to economic growth; to reduce...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2009

    Financing Social Security: Simulating Different Welfare State Systems For Germany

    In Germany, there is an ongoing debate about how to increase the efficiency of the social security system and especially it's financing. The aim of this paper is to simulate different financing systems for Germany. The introduction of a Liberal British or the Southern Greek financing system increases inequality and...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2010

    Employer Preferences And Social Policy: Business And The Development Of Job Security Regulations In Germany Since World War I

    This paper examines the role of business in the historical development of job security regulations in Germany from their creation in the inter-war period to the dawn of the crisis of the 'German Model' in the 1980s. It contrasts the varieties of capitalism approach, which sees business as protagonists, or...

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  • White Papers // Oct 2008

    Household Access To Microcredit And Children's Food Security In Rural Malawi: A Gender Perspective

    Using data from the 1995 Malawi Financial Markets and Food Security Survey, this study seeks to discover if women's relative control over household resources or intra-household bargaining power in rural Malawi, gauged by their access to microcredit, plays a role in children's food security, measured by anthropometric nutritional Z-scores. Access...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2010

    Automatic Stabilisers And Economic Crisis: US Vs Europe

    This paper analyzes the effectiveness of the tax and transfer systems in the European Union and the US to act as an automatic stabilizer in the current economic crisis. The authors find that automatic stabilizers absorb 38 per cent of a proportional income shock in the EU, compared to 32...

    Provided By Institute for the Study of Labor

  • White Papers // Feb 2009

    The Crux Of The Matter: Ratings And Credit Risk Valuation At The Heart Of The Structured Finance Crisis

    The 2007/2008 global credit crisis was born out of opaque securitization transactions. Introducing structured products risk estimation techniques shows how the most basic investment analysis could not be done without detailed and updated knowledge on the assets of the pool. Access to such details was crucial for investors to perform...

    Provided By Institute for the Study of Labor

  • White Papers // Jan 2011

    Enrolment In Micro Life And Health Insurance: Evidences From Sri Lanka

    Microinsurance is an emerging concept protecting households from the potentially catastrophic expenditures associated with family related shocks. Therefore, this paper presents evidence on the determinants of insurance participation using probit models on household survey data from Sri Lanka, conditional on household's microfinance institution enrolment. Further, the authors employ multivariate probit...

    Provided By Institute for the Study of Labor

  • White Papers // Feb 2010

    Accounting For China's Growth

    China has achieved impressive growth over the last three decades. However, there has been debate over the sources of the growth, and the role of the intensive versus extensive margin. Growth accounting exercises at the aggregate level (Rawski and Perkins, 2008; Bosworth and Collins, 2008) suggest an equal role for...

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  • White Papers // Sep 2008

    Race, Ethnicity And The Dynamics Of Health Insurance Coverage

    Using matched data from the 1996 to 2004 Current Population Survey (CPS), the authors examine racial patterns in annual transitions into and out of health insurance coverage. They first decompose racial differences in static health insurance coverage rates into group differences in transition rates into and out of health insurance...

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  • White Papers // Jan 2009

    Self-employment And The Role Of Health Insurance

    The authors investigate the effect of health insurance on labor market transitions in and out of self-employment as well as on the likelihood of being self-employed. They consider the role of individual health insurance coverage along with that from a spouse. Next, they examine a series of tax deductions granted...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2009

    The Effect Of An Employer Health Insurance Mandate On Health Insurance Coverage And The Demand For Labor: Evidence From Hawaii

    Over the past few decades, policy makers have considered employer mandates as a strategy for stemming the tide of declining health insurance coverage. In this paper, the authors examine the long term effects of the only employer health insurance mandate that has ever been enforced in the United States, Hawaii's...

    Provided By Institute for the Study of Labor

  • White Papers // Jan 2009

    Child Welfare And Old-Age Security In Female Headed Households In Tanzania

    This paper is concerned with patterns of expenditure and child welfare among Female Headed Households (FHH) and Male Headed Households (MHH) in Tanzania as well as with the underlying cause of potentially different patterns. The author estimates semiparametric Engel curves to investigate household expenditure patterns while controlling for household characteristics...

    Provided By Institute for the Study of Labor

  • White Papers // Jun 2009

    Age At Migration And Social Integration

    The paper studies childhood migrants and examines how age at migration affects their ensuing integration at the residential market, the labor market, and the marriage market. The authors use population-wide Swedish data and compare outcomes as adults among siblings arriving at different ages in order to ensure that the results...

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  • White Papers // Mar 2010

    Overconfidence Is A Social Signaling Bias

    Evidence from psychology and economics indicates that many individuals overestimate their ability, both absolutely and relatively. The authors test three different theories about observed relative overconfidence. The first theory notes that simple statistical comparisons (for example, whether the fraction of individuals rating own skill above the median value is larger...

    Provided By Institute for the Study of Labor

  • White Papers // Feb 2011

    Social Networks And Interactions In Cities

    The authors examine how interaction choices depend on the interplay of social and physical distance, and show that agents who are more central in the social network, or are located closer to the geographic center of interaction, choose higher levels of interactions in equilibrium. As a result, the level of...

    Provided By Institute for the Study of Labor

  • White Papers // Mar 2011

    Cigarette Taxes And The Social Market

    Previous researchers have argued that the social market for cigarettes insulates its participants from policies designed to curb youth smoking. Using state Youth Risk Behavior Survey data, the authors examine whether recent changes in state cigarette taxes affected how young smokers obtained their cigarettes. Their estimates suggest that tax increases...

    Provided By Institute for the Study of Labor

  • White Papers // Oct 2009

    Layoff Costs And Efficiency With Asymmetric Information

    In a world where employer-employee matches are characterized by private information, the authors know from Hall and Lazear (1984) that obtaining ex-post efficient trade is fraught with problems. The nature of the relationship creates a bilateral monopoly situation, and asymmetric information implies that some separations may be inefficient, i.e. the...

    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 // Dec 2010

    Globalization And Strategic Research Investments

    The authors develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into basic research to improve their technological potential. These research investments tighten firm selection and raise the average productivity of firms in the market, thereby implying lower consumer prices and higher welfare. In...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2010

    Trends In Economic Research: An International Perspective

    Given the recent efforts in several countries to reorganize the research institutional setting to improve research productivity, the authors' analysis addresses the following questions: to which extent has the recent awareness over international quality standards in economics around the world been reflected in research performance? How have individual countries fared?...

    Provided By Institute for the Study of Labor

  • White Papers // Jan 2010

    Well-Being Inequality And Reference Groups: An Agenda For New Research

    In this paper it is argued that subjective well-being of the individual depends on two types of variables. The first type consists of characteristics of the individual himself, such as age, health, income, etc. The second type of variables consists of the characteristics of the individuals belonging to his reference...

    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