{"title":"Occupation Growth, Skill Prices, and Wage Inequality","authors":"Michael J. Böhm, H. Gaudecker, Felix Schran","doi":"10.2139/ssrn.3468012","DOIUrl":"https://doi.org/10.2139/ssrn.3468012","url":null,"abstract":"This paper studies the relationship between changes in occupational employment, occupational wages, and rising overall wage inequality. Using long-running administrative panel data with detailed occupation codes, we first document that in all occupations, entrants and leavers earn lower wages than stayers. This empirical fact suggests substantial skill selection effects that are negative for growing occupations and positive for shrinking ones. We develop and estimate a model for prices paid per unit of skill in occupations, which incorporates occupation-specific skill accumulation over the career and endogenous switching across many occupations. Our results shed light on two important puzzles in prior literature. First, consistent with leading explanations for occupational employment changes, price and employment growth are positively related. Strong counteracting skill changes along the lines of our new empirical fact explain why occupational wages are unrelated to employment growth. Second, skill prices establish a long-suspected quantitative connection between occupational changes and the surge in wage inequality.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134370182","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Unemployment Duration and Re-employment Wages","authors":"M. Lopes","doi":"10.2139/ssrn.3928238","DOIUrl":"https://doi.org/10.2139/ssrn.3928238","url":null,"abstract":"I take a control function approach to overcome the difficulty raised by the simultaneity issue in the estimation of the impact of unemployment duration on re-employment wages. I consider three alternative instruments, which are based on the rules of the potential duration of unemployment benefits around 2007 in Portugal. The results show that each additional month in unemployment duration is expected to decrease the re-employment wage by around 0.5%. Results are robust when I account for selectivity, either by considering the conventional Heckman two-step approach or the augmented inverse probability of censoring weighted estimation.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123419493","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of Uncertainty on Two-Tiered Labor Markets","authors":"Shutao Cao, Enchuan Shao, Pedro Silos","doi":"10.2139/ssrn.3919062","DOIUrl":"https://doi.org/10.2139/ssrn.3919062","url":null,"abstract":"This paper studies the impact of an increase in uncertainty on labor markets where jobs with strong employment protection coexist with temporary contracts. We develop a search and matching model where firms and workers choose the type of contract. The model allows for endogenous separations and job-to-job transitions. We show that in the data, times of heightened uncertainty correlate with a higher share of temporary workers, a lower wage inequality between permanent and temporary jobs, and a slight increase in unemployment. Our model is consistent with these facts. The main mechanism works through the higher relative value of temporary contracts as a result of the higher uncertainty. The change in relative value interacts with the endogenous hiring and firing decisions under both types of contracts.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129088218","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does the COVID-19 Pandemic Shock Change the Reservation Wage?","authors":"Sachiko Kazekami","doi":"10.2139/ssrn.3913856","DOIUrl":"https://doi.org/10.2139/ssrn.3913856","url":null,"abstract":"The COVID-19 pandemic can change the reservation wage because of changes in people’s preferences due to the risk of infection, the rapid rise of work at home, or a worsened household economy. Furthermore, the changing reservation wage changes the decision to work, especially for the second wage earner. This study examines the effect of the pandemic shock on the reservation wage using the difference-in-differences method and Japanese data about job seekers’ desired wage. We find that after the first wave of the pandemic, the reservation wages for part-time (full-time) job increase (decrease) in urban prefectures. Especially, the reservation wages for part-time managerial (construction and mining) occupations increase (decrease). These managerial jobs include managing shops like restaurants and bars, where it is difficult to maintain sales during pandemic and a high risk of infection exists. People may not prefer these aspects. In contrast, the pandemic shock worsened the household economy. This may decrease the reservation wage in jobs where money is received instantly, such as part-time construction and mining jobs. Finally, contrary to our expectation, the reservation wage of professional jobs that seem to be familiar with work at home does not decrease. Furthermore, the decrease in reservation wages in the prior period increases the labor market participation rate.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125194930","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Joann F. de Zegher, Boyu Liu, Lisa Rende Taylor, Mark Taylor
{"title":"Low-Skilled Labor Shortages Contribute to Forced Labor — Evidence From Myanmar and Thailand","authors":"Joann F. de Zegher, Boyu Liu, Lisa Rende Taylor, Mark Taylor","doi":"10.2139/ssrn.3899489","DOIUrl":"https://doi.org/10.2139/ssrn.3899489","url":null,"abstract":"Over 25 million people are victims of forced labor globally; the vast majority are low-skilled migrant workers who migrated from a different country or region. Evidence so far indicates that much of labor exploitation has roots in the recruitment process. This motivates the question of whether there are characteristics common to low-skilled labor recruitment that can serve as reliable indicators of forced labor risk in the workplace. Leveraging unique data sets from the Myanmar Government and the Issara Institute on weekly demand for Burmese migrant workers in Thailand by Thai companies, and on worker voice hot-line data from 2018-2020, we find that unexpected labor shortages in the workplace significantly increase migrant worker abuse. Using an Instrumental Variable (IV) approach, we find that an increase of one standard deviation in low-skilled labor shortages in the workplace leads to a 34.5% or higher increase in worker-reported labor abuse in the two to four weeks that follow. Shocks of such magnitude occur about 10% of the time. We also find a visible correlation between provinces whose labor markets are more stressed on average and the frequency of unexpected labor shortages in a province, suggesting that stressed labor markets are also more prone to unexpected shortages and abuse. Overall, this research suggests that inefficiencies in matching supply and demand for low-skilled labor play an important role in determining labor abuse outcomes, and that reducing these inefficiencies in the labor recruitment process could help mitigate labor abuse.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123723399","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Multinational Corporations and Labour Supply in Africa","authors":"M. Mendola, G. Prarolo, T. Sonno","doi":"10.2139/ssrn.3898678","DOIUrl":"https://doi.org/10.2139/ssrn.3898678","url":null,"abstract":"Do multinational enterprises impact locals’ labor opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals’ affiliates spanning Sub-Saharan Africa. Having a multinational’s affiliate within walking distance correlates with an average boost in employment (+4.3%), in comparison to those without. Multinationals’ activity is correlated with higher o –farm (+13%) and lower on-farm (-7%) employment, a result particularly driven by affiliates from foreign companies. Average job quality increases around affiliates, but only when part of foreign groups.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122986099","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bruce C. Fallick, J. Haltiwanger, Erika McEntarfer, Matthew Staiger
{"title":"Job Displacement and Job Mobility: The Role of Joblessness","authors":"Bruce C. Fallick, J. Haltiwanger, Erika McEntarfer, Matthew Staiger","doi":"10.2139/ssrn.3503543","DOIUrl":"https://doi.org/10.2139/ssrn.3503543","url":null,"abstract":"Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127673343","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Graduate Employment Prospects Post COVID Pandemic Lockdown","authors":"Varun Shenoy","doi":"10.2139/ssrn.3896808","DOIUrl":"https://doi.org/10.2139/ssrn.3896808","url":null,"abstract":"The unprecedented outbreak of corona virus has left a very bleak impact on the graduate job markets. With Employers themselves fighting for survival, any new manpower addition at these times especially greenhorns in any forms are unlikely or have witnessed drastic reduction. Futuristic Analysis applied in this research is an art of contemplating future by using data mining methodologies on huge current available information and systematic interpretation of probabilistic real future through data elements. Graduates generally need to find work to support themselves and contribute to economy. Currently, incertitude has made room in student graduates’ minds regarding work as what is been in educated in their institutions till the lockdown and new things they heard during lockdown and how to adjust to the new normal of work post lockdown. Hence, this paper explores what will be the nature, mode and choice of work for graduate greenhorns beginning their career path post lockdown.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125981246","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jonas Cederlöf, P. Fredriksson, Arash Nekoei, D. Seim
{"title":"Mandatory Advance Notice of Layoff: Evidence and Efficiency Considerations","authors":"Jonas Cederlöf, P. Fredriksson, Arash Nekoei, D. Seim","doi":"10.2139/ssrn.3888276","DOIUrl":"https://doi.org/10.2139/ssrn.3888276","url":null,"abstract":"We investigate a prevalent, but understudied, employment protection policy: mandatory advance notice (MN), requiring employers to notify employees of forthcoming layoffs. MN increases future production, as notified workers search on the job, but reduces current production as they supply less effort. Our theoretical model captures this trade-off and predicts that MN improves production efficiency by increasing information sharing, whereas large production losses can be avoided by worker-firm agreements on side-payments – severance pay – in lieu of MN. We provide evidence of such severance increases in response to an extension of MN using novel Swedish administrative data. We then estimate the production gain of MN: extending the MN period leads to shorter non-employment duration and higher reemployment wages, plausibly driven by on-the-job search. Using variation in notice duration across firms, we estimate the productivity loss of notice. The estimates of benefits and costs suggest that MN has a positive net impact on production, offering an empirically-grounded efficiency argument for mandating notice.","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"213 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115942884","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Migration Networks and Location Decisions: Evidence from U.S. Mass Migration","authors":"B. Stuart, E. Taylor","doi":"10.1257/APP.20180294","DOIUrl":"https://doi.org/10.1257/APP.20180294","url":null,"abstract":"This paper studies how birth town migration networks affected long-run location decisions during historical US migration episodes. We develop a new method to estimate the strength of migration networks for each receiving and sending location. Our estimates imply that when one randomly chosen African American moved from a Southern birth town to a destination county, then 1.9 additional Black migrants made the same move on average. For White migrants from the Great Plains, the average is only 0.4. Networks were particularly important in connecting Black migrants with attractive employment opportunities and played a larger role in less costly moves. (JEL J15, J61, N32, N92, R23, Z13)","PeriodicalId":221250,"journal":{"name":"Labor: Supply & Demand eJournal","volume":"256 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132842972","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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