{"title":"Beans for Breakfast? How Exportable is the British Workfare Model?","authors":"Kristian Orsini, O. Bargain","doi":"10.1016/S0147-9121(06)25007-6","DOIUrl":"https://doi.org/10.1016/S0147-9121(06)25007-6","url":null,"abstract":"","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"200 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116150011","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":"Ethnic Specialization and Earnings Inequality: Why Being a Minority Hurts But Being a Big Minority Hurts More","authors":"M. Kahanec","doi":"10.2139/ssrn.894867","DOIUrl":"https://doi.org/10.2139/ssrn.894867","url":null,"abstract":"Social interaction is an important vehicle of human capital acquisition and its efficiency decreases in social distance. In this paper I establish that these two premises, given the socio-cultural differences between ethnic groups, explain the puzzling evidence that (i) minorities typically earn less than majorities and (ii) this earnings gap is increasing in the relative size of a minority in a given region. In particular, I argue that inter-ethnic social distance disadvantages smaller ethnic groups in human capital acquisition and that these efficiency differentials systematically expose minority and majority individuals to different incentives as concerns their choice of skills. As a result, minority and majority individuals tend to acquire different (combinations of) skills and the textbook substitution effect drives an efficiency unit of minority labor to sell at a relatively lower wage in a region with higher percentage of minority people. The conditions under which the efficiency disadvantage of the minority in social interaction and the substitution effect explain the abovementioned empirical findings are established. In addition, this study offers an answer why some minorities earn more than majorities, why minority individuals tend to spend more time socializing in families than in schools, and why integration may harm minorities.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115528322","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":"Performance Pay and Multi-Dimensional Sorting: Productivity, Preferences and Gender","authors":"Thomas Dohmen, A. Falk","doi":"10.1257/AER.101.2.556","DOIUrl":"https://doi.org/10.1257/AER.101.2.556","url":null,"abstract":"This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. Subjects face the choice between a fixed and a variable payment scheme. Depending on the treatment, the variable payment is a piece rate, a tournament or a revenue-sharing scheme. We find that output is higher in the variable pay schemes (piece rate, tournament, and revenue sharing) compared to the fixed payment scheme. This difference is largely driven by productivity sorting. In addition personal attitudes such as willingness to take risks and relative self-assessment as well as gender affect the sorting decision in a systematic way. Moreover, self-reported effort is significantly higher in all variable pay conditions than in the fixed wage condition. Our lab findings are supported by an additional analysis using data from a large and representative sample. In sum, our findings underline the importance of multi-dimensional sorting, i.e., the tendency for different incentive schemes to systematically attract people with different individual characteristics.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121048585","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":"Social Class and Undergraduate Degree Subject in the UK","authors":"M. Bratti","doi":"10.2139/ssrn.885348","DOIUrl":"https://doi.org/10.2139/ssrn.885348","url":null,"abstract":"Although past research has established the existence of strong social class effects on the decision to undertake higher education in the UK, there is only sparse empirical work investigating social class influences on the choice of degree subject at the undergraduate level. We estimate trinomial probit models of undergraduate degree subject enrolled for the period 1981-1991 using Universities’ Statistical Record data and generally find no social class effect. This finding is robust to different ways to aggregate degree subjects and the use of alternative econometric models. Our analysis suggests that in a period pre-dating the mass expansion of higher education, the replacement of student grants with student loans and the introduction of undergraduate student tuition fees, the UK university system granted equal opportunities to students from different social classes in terms of the degree subject enrolled.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129296696","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 Quality of Industrial Relations Matter for the Macro Economy? A Cross-Country Analysis Using Strikes Data","authors":"J. Addison, Paulino Teixeira","doi":"10.2139/ssrn.882826","DOIUrl":"https://doi.org/10.2139/ssrn.882826","url":null,"abstract":"Using international data, we investigate whether the quality of industrial relations matters for the macro economy. We measure industrial relations inversely by strikes – which proxy we cross-check with an industrial relations reputation indicator – and our macro performance outcome is the unemployment rate. Independent of the role of other institutions, good industrial relations do seem to matter: greater strike volume is associated with higher unemployment. Holding country effects constant, however, the sign of the variable is reversed. This fixed-effects result likely picks up a direct effect of strikes, namely, their tendency to rise when striking becomes more attractive to the union.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130693099","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 Economics of Dual Job Holding: A Job Portfolio Model of Labor Supply","authors":"F. Renna, R. Oaxaca","doi":"10.2139/ssrn.877897","DOIUrl":"https://doi.org/10.2139/ssrn.877897","url":null,"abstract":"In this paper we develop a job portfolio model of dual job holding based on a Stone-Geary utility function. We derive the associated Slutsky equation components. Because the job portfolio model applies only to unconstrained dual jobholders, we separate individuals who moonlight because of an hours constraint from dual jobholders who work on two job for reasons different from an hours constraint. Income and wage elasticities are estimated for workers without hours constraints using data from the May 1991 supplement to the Current Population Survey. Our study finds that the income and compensated wage elasticities are much larger for labor supply to job 2 compared with job 1.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124483844","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":"Labour Force Participation of the Elderly in Europe: The Importance of Being Healthy","authors":"A. Kalwij, Frederic Vermeulen","doi":"10.2139/ssrn.875383","DOIUrl":"https://doi.org/10.2139/ssrn.875383","url":null,"abstract":"In this paper we study labour force participation behaviour of individuals aged 50-64 in 11 European countries. The data are drawn from the new Survey of Health, Ageing and Retirement in Europe (SHARE). The empirical analysis shows that health is multi-dimensional, in the sense that different health indicators have their own significant impact on individuals' participation decisions. Health effects differ markedly between countries. A counterfactual exercise shows that improved health conditions may yield over 10 percentage points higher participation rates for men in countries like Austria, Germany and Spain, and for females in the Netherlands and Sweden. Moreover, we show that the declining health condition with age accounts considerably for the decline in participation rates with age.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127142852","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":"Do Emotions Improve Labor Market Outcomes?","authors":"L. Goette, David Huffman","doi":"10.2139/ssrn.875404","DOIUrl":"https://doi.org/10.2139/ssrn.875404","url":null,"abstract":"Traditionally, models of economic decision-making assume that individuals are rational and emotionless. This chapter argues that the neglect of emotion in economic models explains their inability to predict important aspects of the labor market. We focus on one example: the scarcity of nominal wage cuts. Firms frequently cut real wages of workers, by increasing nominal wages by less than the inflation rate, but seldom cut nominal wages, in contrast to the predictions of the standard, rational model. This pattern suggests that workers exhibit a special resistance to nominal wage cuts, which is hard to explain if they are purely rational. We argue that strong resistance to nominal wage cuts is best understood in terms of a model where, consistent with evidence from psychology and neuroscience, salient features of a situation trigger emotional responses and sway judgment of the entire situation. Since a cut in the wage is a very salient feature, we argue that cutting the nominal wage leads to a reaction that is mainly dominated by emotions. On the other hand, we hypothesize that an increase in the nominal wage produces a more deliberative evaluation, because there is no immediately salient feature: the individual needs to compare the inflation rate to the wage change before it becomes clear whether the change increases or decreases utility, thus producing a more measured response. We present evidence from experiments that supports this argument: self-reported emotions such as anger and surprise respond strongly to nominal wage cuts, but not to decreases in the real wage achieved through increasing the nominal wage by less than the inflation rate. Although emotions may benefit individual workers, by strengthening their bargaining position and preventing wage cuts, we argue that overall impact on labor market outcomes is ambiguous, because a survey of the evidence suggests that higher wages tend to lead to higher unemployment.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126966771","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":"Regional Disparities and Inequality of Opportunity: The Case of Italy","authors":"D. Checchi, Vito Peragine","doi":"10.2139/ssrn.869006","DOIUrl":"https://doi.org/10.2139/ssrn.869006","url":null,"abstract":"In this paper we provide a new methodology to measure opportunity inequality and to decompose overall inequality in an \"ethically offensive\" and an \"ethically acceptable\" part. Moreover, we provide some empirical applications of these new evaluation tools: in the first exercise, we compare the income distributions of South and North of Italy on the basis of a measure of opportunity inequality. Then, we repeat the exercise using the cognitive abilities in a sample of 15-year old students. In both circumstances we find that the less developed regions in the South are characterized by greater incidence of inequality of opportunity.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131345749","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":"Preferences, Gender Segregation and Affirmative Action","authors":"P. Sloane, S. Grazier, Richard J. Jones","doi":"10.2139/ssrn.870289","DOIUrl":"https://doi.org/10.2139/ssrn.870289","url":null,"abstract":"In the UK concern has been expressed over the degree of gender occupational segregation. Though there are no general provisions for affirmative action, it does apply in limited areas and pro-active measures have been suggested. In this paper we focus on gender differences in work preferences in relation to job satisfaction, risk aversion and self employment, and question the rationale for affirmative action.","PeriodicalId":261871,"journal":{"name":"IZA: General Labor Economics (Topic)","volume":"68 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2005-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131552952","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}