Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-11-18DOI: 10.1016/j.labeco.2025.102824
Tong Wang
{"title":"Labour market outcomes of minimum wage changes: A behavioural perspective","authors":"Tong Wang","doi":"10.1016/j.labeco.2025.102824","DOIUrl":"10.1016/j.labeco.2025.102824","url":null,"abstract":"<div><div>The minimum wage has long been central to labour market policy debates. This paper develops a unified theoretical framework to assess the multifaceted effects of minimum wage hikes on employment, wages, effort, labour productivity, and firms’ profits. The model introduces two key channels: a conventional wage channel, where increased compensation for unskilled workers reduces labour demand, and a novel effort channel, where higher effort and productivity in response to perceived employer generosity mitigate job loss. In equilibrium, firms offer wage premiums above the minimum wage to incentivise effort, with spillovers to higher wages through workers’ fairness considerations. The own-wage employment elasticity for unskilled workers is about <span><math><mrow><mo>−</mo><mn>0</mn><mo>.</mo><mn>026</mn></mrow></math></span>, indicating mild disemployment effects. Moreover, this elasticity shows weak dependence on the business cycle. The framework highlights critical interactions across multiple margins, offering comprehensive insights into the broader impacts of minimum wage policy.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102824"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145623331","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-10-30DOI: 10.1016/j.labeco.2025.102819
Dongmin Kong , Yifan Jin , Shasha Liu
{"title":"Labor costs and domestic value added: Evidence based on the China’s new Labor Contract law","authors":"Dongmin Kong , Yifan Jin , Shasha Liu","doi":"10.1016/j.labeco.2025.102819","DOIUrl":"10.1016/j.labeco.2025.102819","url":null,"abstract":"<div><div>This paper investigates the impact of labor costs on the domestic value added (DVA) at the firm-level. To establish causality, we use the quasi-natural experiment of the implementation of China’s new <em>Labor Contract law</em>, which leads to a sudden increase in labor costs, to conduct a difference-in-differences (DID) estimation. We find that an increase in labor costs significantly and persistently increases firms’ DVA. Mechanism analyses suggest that these effects are mainly driven by improvement of management efficiency, changes in firms’ trading patterns (from processing trades to ordinary trades), progress in process innovation, and further increased product market power. Moreover, our results are stronger for upstream firms far from final consumption, firms with low product quality, non-state-owned firms, and firms located in areas with low market competition or less legal environmental protection. Overall, this paper investigates a determinant of DVA and adds evidence to the economic implications of China’s new Labor Contract law.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102819"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145519856","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-07-24DOI: 10.1016/j.labeco.2025.102765
Marianna Kudlyak , Murat Tasci , Didem Tüzemen
{"title":"Minimum wage increases and vacancies","authors":"Marianna Kudlyak , Murat Tasci , Didem Tüzemen","doi":"10.1016/j.labeco.2025.102765","DOIUrl":"10.1016/j.labeco.2025.102765","url":null,"abstract":"<div><div>We use a unique data set and a novel identification strategy to estimate the effect of minimum wage increases on vacancy postings. Utilizing occupation-specific county-level vacancy data from the Conference Board’s Help Wanted Online for 2005-18, we find that state-level minimum wage increases lead to substantial declines in existing and new vacancy postings in occupations with a larger share of workers earning close to the effective minimum wage. We estimate that a 10 percent increase in the state-level effective minimum wage reduces vacancies in these occupations relative to the rest by 2.4 percent in the same quarter, and the cumulative effect is as large as 4.5 percent a year later. Focusing on vacancies rather than employment allows us to highlight changes in firms’ hiring intentions in response to minimum wage increases. Coupled with the earlier U.S. evidence showing reductions in separations following minimum wage hikes, our finding of declining vacancies contributes to the broader empirical literature suggesting negligible effects of minimum wage increases on net employment.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102765"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145005315","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Deconstructing job search behavior","authors":"Stefano Banfi , Sekyu Choi , Benjamín Villena-Roldán","doi":"10.1016/j.labeco.2025.102822","DOIUrl":"10.1016/j.labeco.2025.102822","url":null,"abstract":"<div><div>Using online job board data, we study the key factors driving application decisions for unemployed and employed job seekers. We identify relevant job consideration sets using a network approach based on co-application patterns. We document how demographics and ad timing affect applications, finding evidence consistent with stock–flow matching for the unemployed. Furthermore, we show seekers respond strongly to misalignment in education, experience, wages, and location, generally applying where observable alignment is good, although employed seekers seem more ambitious, showing greater tolerance for underqualification in education and a tendency to apply for jobs above their declared wage expectations. Methodologically, we propose this network approach for defining consideration sets, helping address potential biases in standard market definitions. This evidence contributes to understanding search behavior and differences between seeker types.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102822"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145578763","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-09-16DOI: 10.1016/j.labeco.2025.102801
Giuseppe Moscelli, Osea Giuntella, Nicolas R. Ziebarth
{"title":"Recent evidence on the “Economics of the Healthcare Workforce”: Preface to the Labour Economics Special Issue","authors":"Giuseppe Moscelli, Osea Giuntella, Nicolas R. Ziebarth","doi":"10.1016/j.labeco.2025.102801","DOIUrl":"10.1016/j.labeco.2025.102801","url":null,"abstract":"","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102801"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145690581","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Gender differences in preferences for flexible work hours: Experimental evidence from an online freelancing platform","authors":"Rakesh Banerjee , Tushar Bharati , Adnan M.S. Fakir , Yiwei Qian , Naveen Sunder","doi":"10.1016/j.labeco.2025.102813","DOIUrl":"10.1016/j.labeco.2025.102813","url":null,"abstract":"<div><div>We conducted an experiment on a major international online freelancing platform to examine how increased flexibility in daily work hours affects female participation. We post identical job advertisements (for 320 jobs) covering a wide range of tasks (80 distinct tasks) that differ only in flexibility and the wage offered. Comparing the numbers of applicants for these jobs, we find that, while both men and women prefer flexibility, the elasticity of response for women is twice that for men. Flexible jobs attracted 24% more women and 12% more men than inflexible ones. Importantly, these increases did not compromise the quality of the applications. In contrast, there is suggestive evidence that flexible jobs attracted higher-quality female candidates. Our findings have significant implications for understanding gender disparities in labor market outcomes and for shaping equity-focused policies of organizations.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102813"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145578762","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-09-22DOI: 10.1016/j.labeco.2025.102809
Johannes Berens , Leandro Henao , Kerstin Schneider
{"title":"Tuition fees and academic (in)activity","authors":"Johannes Berens , Leandro Henao , Kerstin Schneider","doi":"10.1016/j.labeco.2025.102809","DOIUrl":"10.1016/j.labeco.2025.102809","url":null,"abstract":"<div><div>We examine the effects of abolishing moderate tuition fees (EUR 500 per semester) in Germany on higher education outcomes. Using administrative panel data from a state university, we find that tuition-free students reduced their academic effort: active students postponed graduation, while low-activity students became more inactive by withdrawing from registered exams. Leveraging detailed student-level data, we analyze the ghost student phenomenon, in which enrolled students show no academic activity. This pattern emerges from strong enrollment incentives combined with a lack of performance standards. After the reform, the share of ghost students increased, reducing the efficiency of public spending on higher education.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102809"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145220501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-11-06DOI: 10.1016/j.labeco.2025.102820
Agar Brugiavini , Marco Di Cataldo , Giulia Romani
{"title":"Knowledge economy, internal migration, and local labour markets","authors":"Agar Brugiavini , Marco Di Cataldo , Giulia Romani","doi":"10.1016/j.labeco.2025.102820","DOIUrl":"10.1016/j.labeco.2025.102820","url":null,"abstract":"<div><div>The spatial concentration of knowledge-intensive activities can generate multiplicative effects at the local level. This paper examines how employment growth in knowledge-intensive and tradable sectors affects wage, days worked, and internal migration of non-tradable workers in Italy. We leverage matched employer-employee data (2005–2019) to track individuals across jobs and locations. Our empirical strategy combines a two-step estimation with a shift-share instrument to disentangle the roles of worker sorting and local spillovers. We find that knowledge sector expansion increases the number of days worked locally and attracts non-tradable workers. It also raises nominal wages, but only when sorting is not accounted for, suggesting selective inflows of more productive workers into knowledge hubs. However, rising local living costs offset nominal wage gains, leading to lower real wages.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102820"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145465495","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-09-27DOI: 10.1016/j.labeco.2025.102805
Steven F. Lehrer , Louis-Pierre Lepage , Nuno Sousa Pereira
{"title":"Breaking barriers: The impacts of employer exposure to immigrants","authors":"Steven F. Lehrer , Louis-Pierre Lepage , Nuno Sousa Pereira","doi":"10.1016/j.labeco.2025.102805","DOIUrl":"10.1016/j.labeco.2025.102805","url":null,"abstract":"<div><div>We study how exposure of employers to immigrants, both at the market and at the individual firm level, mitigates immigrant–native disparities. We use administrative employee–employer matched data from Portugal, which provides a unique setting given that it experienced almost no immigration until the early 2000s followed by substantial immigration waves. Focusing on the evolution of market wages across successive immigration cohorts, we find that increased employer exposure to immigrant groups contributed substantially to the wage convergence between immigrants and natives over the last two decades. We also document that individual-level exposure of firms to immigrants appears to play an important role, influencing future hiring and remuneration of immigrants. Our results provide new insights into how barriers to hiring different worker groups shape economic inequality, with novel implications for integration policies.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102805"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145690593","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labour EconomicsPub Date : 2025-12-01Epub Date: 2025-10-11DOI: 10.1016/j.labeco.2025.102812
Brock M. Wilson
{"title":"Retirement, retention, recruitment: Evidence from a federal pension policy","authors":"Brock M. Wilson","doi":"10.1016/j.labeco.2025.102812","DOIUrl":"10.1016/j.labeco.2025.102812","url":null,"abstract":"<div><div>I exploit a policy change for U.S. federal workers’ pension benefits to estimate the effect of pension generosity on worker retirement, retention and recruitment. The policy increased pensions by 16%–25%. I find there is a 30.3% decrease in job quits for permanent workers. However, there is little evidence that pension generosity has an effect on new hires. This suggests salience may play a role in how workers value pensions. Additionally, I find a large heterogeneous labor supply response to pension generosity. Altogether, this shows that pension generosity is effective in retaining workers and may have important implications for workforce planning.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102812"},"PeriodicalIF":2.6,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145362298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}