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Author: Ana Luisa Toledo Piza Pessoa Araujo Publisher: ISBN: Category : Languages : en Pages : 95
Book Description
This dissertation studies the interaction between job stability and labor markets. Chapter 1 studies the impact of firm turnover and job recall on wages. I start this chapter with an empirical contribution. I demonstrate the importance of recall and turnover for employment dynamics and wages using matched employer-employee data from Brazil. First, I document large dispersion of job-destruction rates and recall rates across sectors. Second, I show that after controlling for worker and firm characteristics, sectors with greater job instability (an inverse measure of tenure that controls for recall) pay more. To explain this finding I construct a multi-sector closed economy version of Mortensen and Pissarides (1994) with directed search and heterogeneous recall rates as well as heterogeneous layoff rates across sectors. Once I have estimated the model's parameters using the data, I then conduct the main experiment which is to assess the impact of Brazil's recall restrictions on employment dynamics. The Brazilian government bans recalls within 3 months of the date of firing. I simulate the imposition of this law, and I find that this restriction on recall activity decreases the employment rate significantly in aggregate, but the impact is very heterogeneous across sectors. Chapter 2, studies wage inequality and job stability. I start this chapter with a data motivation where I use matched employer-employee data to establish that separations are disproportionately comprised of layoffs for low wage workers, not separations due to job-to-job transitions. Secondly, I show that existing models such as Burdett and Coles (2003) and Shi (2009) are inconsistent with this fact since they assume that the exogenous component of job destruction is constant across firms, and low wage workers search on-the-job much more intensely than high wage workers. To explain this fact, I develop a new model that takes into account the disproportionate share of layoffs among low wage workers. I show that after correctly matching the wage/layoff relationship, the introduction of a 30% `firing cost' results in nearly twice as much wage inequality as compared to a model with a homogeneous firing rate across firms.
Author: Ana Luisa Toledo Piza Pessoa Araujo Publisher: ISBN: Category : Languages : en Pages : 95
Book Description
This dissertation studies the interaction between job stability and labor markets. Chapter 1 studies the impact of firm turnover and job recall on wages. I start this chapter with an empirical contribution. I demonstrate the importance of recall and turnover for employment dynamics and wages using matched employer-employee data from Brazil. First, I document large dispersion of job-destruction rates and recall rates across sectors. Second, I show that after controlling for worker and firm characteristics, sectors with greater job instability (an inverse measure of tenure that controls for recall) pay more. To explain this finding I construct a multi-sector closed economy version of Mortensen and Pissarides (1994) with directed search and heterogeneous recall rates as well as heterogeneous layoff rates across sectors. Once I have estimated the model's parameters using the data, I then conduct the main experiment which is to assess the impact of Brazil's recall restrictions on employment dynamics. The Brazilian government bans recalls within 3 months of the date of firing. I simulate the imposition of this law, and I find that this restriction on recall activity decreases the employment rate significantly in aggregate, but the impact is very heterogeneous across sectors. Chapter 2, studies wage inequality and job stability. I start this chapter with a data motivation where I use matched employer-employee data to establish that separations are disproportionately comprised of layoffs for low wage workers, not separations due to job-to-job transitions. Secondly, I show that existing models such as Burdett and Coles (2003) and Shi (2009) are inconsistent with this fact since they assume that the exogenous component of job destruction is constant across firms, and low wage workers search on-the-job much more intensely than high wage workers. To explain this fact, I develop a new model that takes into account the disproportionate share of layoffs among low wage workers. I show that after correctly matching the wage/layoff relationship, the introduction of a 30% `firing cost' results in nearly twice as much wage inequality as compared to a model with a homogeneous firing rate across firms.
Author: Benedikt Herz Publisher: ISBN: Category : Languages : en Pages : 108
Book Description
This thesis consists of three essays. In the first essay, I empirically evaluate the importance of wait unemployment. Instead of taking the next best job, a displaced worker has an incentive to stay unemployed and wait for a vacancy that matches his skills. Using a difference-in-difference approach for identification, I find that this mechanism is an important component of aggregate unemployment in the U.S. labor market. In the second essay (co-authored with Thijs van Rens), we propose an accounting framework to decompose mismatch unemployment into different components and analyze its behavior over the business cycle. In the third essay, I reevaluate the evidence for job polarization in the U.S. labor market. I find that existing evidence is biased. What really mattered for changes in the occupation structure since the 1990s was the education-premium.
Author: Christina Hyde Patterson Publisher: ISBN: Category : Languages : en Pages : 287
Book Description
This thesis consists of three chapters on labor market dynamics. In the first chapter, I show empirically that the unequal incidence of recessions is a core channel through which aggregate shocks are amplified. I show that the aggregate marginal propensity to consume (MPC) is larger when income shocks disproportionately hit high-MPC individuals, and I define the Matching Multiplier as the increase in the output multiplier originating from the matching of workers to jobs with different income elasticities - a greater matching multiplier translates into more powerful amplification in a range of business cycle models. Using administrative data from the United States, I document that the earnings of individuals with a higher marginal propensity to consume are more exposed to recessions. I show that this covariance between worker MPCs and the elasticity of their earnings to GDP is large enough to increase shock amplification by 40 percent over a benchmark in which all workers are equally exposed. Using local labor market variation, I validate this amplification mechanism by showing that areas with higher matching multipliers experience larger employment fluctuations over the business cycle. Lastly, I derive a generalization of the matching multiplier in an incomplete markets model and show numerically that this mechanism is quantitatively similar within this structural framework. In the second chapter, joint with David Autor, David Dorn, Lawrence Katz, and John Van Reenen, we explore the well-documented fall of labor's share of GDP in the United States and many other countries. Existing empirical assessments typically rely on industry or macro data, obscuring heterogeneity among firms. In this paper, we analyze micro panel data from the U.S. Economic Census since 1982 and document empirical patterns to assess a new interpretation of the fall in the labor share based on the rise of "superstar firms." If globalization or technological changes advantage the most productive firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar firms. Since these firms have high markups and a low labor share of firm value-added and sales, this depresses the aggregate labor share. We empirically assess seven predictions of this hypothesis: (i) industry sales will increasingly concentrate in a small number of firms; (ii) industries where concentration rises most will have the largest declines in the labor share; (iii) the fall in the labor share will be driven largely by reallocation rather than a fall in the unweighted mean labor share across all firms; (iv) the between-firm reallocation component of the fall in the labor share will be greatest in the sectors with the largest increases in market concentration; (v) the industries that are becoming more concentrated will exhibit faster growth of productivity and innovation; (vi) the aggregate markup will rise more than the unweighted firm markup; and (vii) these patterns should be observed not only in U.S. firms, but also internationally. We find support for all of these predictions. In the third chapter, I explore how the distribution of tasks across industries affects labor market responses to shocks. I present a model in which task-level wages connect industries employing the same tasks, meaning that the distribution of tasks across industries insures some workers against shocks and alters their labor market experiences. Workers trained in more dispersed tasks (e.g. accountants) face less unemployment risk from industry-specific shocks than workers who do tasks that are concentrated in few industries (e.g. petroleum engineers). Using industry and regional data, I show empirical evidence that supports the model's predictions - industries that employ more specialized labor contract less in response to demand shocks than industries with less specialized labor. JEL Classifications: E21, J23, D33
Author: Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation consists of three empirical essays that examine different aspects of wage determination in local labour markets. The first essay investigates whether or not there are human capital externalities or spill-overs from education. I find that the fraction of college graduates in U.S. cities is associated with higher wages in the 1980s but not in the 1990s. To rationalize this pattern, I empirically investigate a model of structural change by Acemoglu (1999) and find considerable support for it in a number of dimensions. Consistent with the notion that there has been a structural change in the labour market, increases in the supply of skilled labour in the 1990s induce a change in the composition of jobs, increase inequality, unemployment, the return to education, and the wages of high-skill workers and harm low-skill workers. The second essay, which is co-authored with Paul Beaudry and David Green, develops a multi-sector search and matching model of the labour market that illustrates a mechanism through which changes in local industrial composition can cause changes in wages in all sectors of the local economy. We empirically test this model using geographical variation in industrial composition across U.S. metropolitan areas from 1970 to 2000 and find that shifts in industrial composition that favor high-paying industries impact wages in other sectors in a manner that is consistent with the model. The third chapter, co-authored with Christopher Bidner, extends the model developed in chapter two to examine the impact of changes in industrial composition on the relative wages of men and women. We find that men lost representation in high-paying industries relative to women and that these losses can account for a substantial portion of the `unexplained' gender pay gap. All three essays use data from the U.S. decennial Censuses and take U.S. metropolitan areas as local labour markets.
Author: Xuetao Huang Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation is a coherent combination of three related essays on the labor market outcome effects of the minimum wage on employment and wages, with an emphasis on low-educated low-wage immigrants. This dissertation is organized as follows. Chapter 1 presents some background of this study. This includes a discussion of coverage of minimum wage policies, both legally and theoretically, and a discussion about mechanisms of immigrants' effects on native workers. These background discussions act as the starting point of market structure of the theoretical models and the connecting part between the theoretical models on immigrants and the empirical work on immigrants and native workers. Chapter 1 also outlines the organization of this dissertation. The first essay is a theoretical model. I build into the model employers' maximization problem of choosing different types of immigrants to maximize profit, facing the tradeoff between the possibility to be caught when hiring unauthorized immigrants and the lower wages to pay for them under the table. Immigrants choose between different locations to maximize their expected wages. The prediction of the model is that the employment of permanent workers who earn a wage below the minimum wage (as in the uncovered sector) would increase first but decrease then with a turning point at around $10/hour. It also predicts that the employment of unauthorized workers in the uncovered sector has a reverse trend, so too high the minimum wage level would pressure employers to hire more unauthorized workers and force the employment of permanent workers to lower down. The second essay is another theoretical piece with alternative model setups. I assume unauthorized workers can also work in the covered sector and I call sectors with unauthorized workers unlawful sectors. There are two of them: unlawful covered sector and unlawful uncovered sector. Again, employers choose which sector they want to be in and how many different immigrants to hire in order to maximize their profits. In addition to that, permanent workers move between sectors in the destination country and unauthorized workers move between destination and originating countries to equalize their expected wages at equilibrium. The model predicts that permanent workers in the unlawful covered and uncovered sectors are two increasing curves of minimum wage and that unauthorized workers in the unlawful sectors are two decreasing curves of minimum wage. It seems that employers in the uncovered sector would prefer to hire permanent workers if both types of immigrants are available in that sector. The third essay is an empirical test for the two previous theoretical models. By using a longitudinal national survey data at person level, we identify the permanent and unauthorized immigrants mainly by their status of permanent residency: we use non-permanent residents to approximate unauthorized immigrants. I used two-way clustering models and two-way clustering Logit models with quadratic terms as the econometric methods. Furthermore, I tested several robustness checks by using different subsets of the longitudinal data. The overall results show that the first theoretical model works better in predicting the curvature of the employment and hourly wages related with minimum wage. These three essays fill the gap of nonlinear effects of the minimum wage on labor market performance in the context of immigrants.
Author: Johanna Posch Publisher: ISBN: Category : Aging Languages : en Pages : 137
Book Description
The elderly are an ever-growing group of the population of western countries. Increasing their low employment rates is one of the greatest challenges we face in labour market policy today and is the subject of the first chapter of this thesis. I evaluate the labour market effects of partial retirement - that is a scheme that subsidises part-time work for older workers. It was introduced as an attempt to extend working lives by incentivising part-time employment after a certain age. I find that this policy had overwhelmingly negative effects on old-age labour supply as most workers substituted full-time work with part-time work in partial retirement without actually extending their active lives. Chapter 2 of this thesis is a re ection on the labour market situation of young workers with parental backgrounds that make it diffcult for them to achieve their potential. When and where they are held back and whether an open labour market can compensate for this disadvantage is the subject of this chapter. I find that after entering the labour force, workers from disadvantaged backgrounds "catch-up" in terms of wages with respect to their privileged peers with the same educational achievement. I explain this phenomenon in a setup of education signalling with noise and subsequent employer learning. In the third chapter my co-authors and I focus on the consequences of national wage setting mechanisms in countries with large geographic differences in labour productivity. We confront Germany with relatively exible wage bargaining mechanisms and Italy with very rigid ones. We find that given the large productivity differences in both countries, Italy's highly centralised bargaining system generates significant inefficiencies and high costs in terms of aggregate earnings and employment particularly in the South.
Author: Publisher: ISBN: Category : Languages : en Pages : 112
Book Description
This dissertation contains three essays on job search and hiring in the labor market. My first essay studies intra-household risk-sharing and job search behaviors over the business cycle. In the Great Recession, the U.S. national unemployment rate rose above 10%. The Unemployment Insurance benefits were extended to as many as 99 weeks in some states. Such measures may be excessive for married people that can share risks with a spouse. I estimate a dynamic model of unitary households in which spouses make joint job search and savings decision. I find that intra-household risk sharing exacerbates the counter-cyclicality of the unemployment rate, but mitigates the welfare costs of aggregate fluctuations. The results suggest the unemployment rate overstates the severity of a labor market recession for married workers. Given that spouses can share risks with one another, little is know about the efficiency of Unemployment Insurance (UI) programs in the household context. In my second essay, I compare the cost-effectiveness of various UI programs. The UI program is more cost-effective if the receipt of benefits is conditional on spousal non-employment or unemployment. In addition, the spousal unemployment requirement rewards intra-household risk sharing. As a result, the UI disproportionally benefit low-wealth households. Finally, I find little evidence that the UI program weakens intra-household coordination of search participation decisions. On the contrary, the spousal unemployment requirement strengthens the coordination between spouses. My third essay explores the mechanisms behind the phenomenon that both wage and the unemployment hazard rate decline with unemployment duration. I focus on two potential causes: skill depreciation and the stigma effects of unemployment duration. The identification of the two mechanisms can be achieved because the duration dependences of wage and hazard rate are affected by the mechanisms differently. I estimate a general equilibrium model with skill depreciation, unobserved worker heterogeneity, and an imperfect screening technology. Results show that less than 15% of the negative duration dependence of hazard rate is due to skill depreciation. In addition, I find that expansions that raise the meeting rate for workers substantially worsen negative duration dependence of unemployment hazard rate.
Author: Ana Luisa Toledo Piza Pessoa Araujo
Author: Ana Luisa Toledo Piza Pessoa Araujo
Author: Richard Barry Freeman
Author: Clark Kerr
Author: Benedikt Herz
Author: Christina Hyde Patterson
Author: 
Author: Manuel E. Toledo
Author: Xuetao Huang
Author: Johanna Posch
Author: