IZA - All published DPs

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No. Author(s) Title JEL Class.
845 Gerda Dewit
Holger Görg
Catia Montagna
Should I Stay or Should I Go? A Note on Employment Protection, Domestic Anchorage, and FDI
This paper examines how employment protection legislation affects location decisions of multinationals. Based on a simple theoretical framework, we estimate an empirical model, using OECD-data on ...
(published as 'Should I stay or should I go? Foreign direct investment, employment protection and domestic anchorage' in: Review of World Economics, 145 (1), 2009, 93-110 )
D80, F23, J80
844 Dirk Sliwka
On the Hidden Costs of Incentive Schemes
By enriching a principal-agent model it is shown that the introduction of monetary incentives may reduce an agent’s motivation. In a first step, we allow for the possibility that some agents stick ...
(revised version published as IZA DP 2293 and in: American Economic Review, 2007, 97 (3), 999 - 1012)
M52, J33, D23
843 James J. Heckman
Rosa Matzkin
Lars Nesheim
Simulation and Estimation of Hedonic Models
Making use of restrictions imposed by equilibrium, theoretical progress has been made on the nonparametric and semiparametric estimation and identification of scalar additive hedonic models ...
(published in: T. Kehoe, T.N. Srinivasan, and J. Whalley (eds.)- Frontiers in Applied General Equilibrium, Cambridge, 2005, 277 - 340)
C31
842 Michael Svarer
Michael Rosholm
Jakob R. Munch
Rent Control and Unemployment Duration
In this paper we investigate whether rent control affects the functioning of the labour market. Particularly, we focus on the effect of rent control on the length of individual ...
(published in: Journal of Public Economics, 2005, 89 (11-12), 2165-2181)
C41, J61, J64, D45, L51
841 Badi H. Baltagi
Daniel P. Rich
Skill-Biased Technical Change in U.S. Manufacturing: A General Index Approach
This article applies recent advances in productivity and efficiency measurement to the evaluation of skillbiased technical change. Using the general index approach we are able to establish an ...
(published in: Journal of Econometrics, 2005, 126 (2), 549-570)
J23, C33, O33
840 Erkki Koskela
Rune Stenbacka
Equilibrium Unemployment Under Negotiated Profit Sharing
We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base wages and profit shares are determined through negotiations. The negotiated ...
(published in: Journal of Economics, 87(2), 2006, 159-180)
J51, J41, G32
839 Andrea Bassanini
Giorgio Brunello
Is Training More Frequent When Wage Compression is Higher? Evidence from the European Community Household Panel
When labor markets are imperfectly competitive, firms may be willing to finance general training if the wage structure is compressed, that is, if the increase of productivity after training is ...
(revised version published as 'Is training more frequent when the wage premium is smaller? Evidence from the European Community Household Panel' in: Labour Economics, 2008, 15(2), 272-290)
J24, J31, J41
838 Sourafel Girma
Holger Görg
Eric Strobl
Government Grants, Plant Survival and Employment Growth: A Micro-Econometric Analysis
In this paper we analyse the impact of governmental grant provision on plant performance. To this end we utilise rich information derived from three data sources for the manufacturing sector in ...
(revised version published as 'The effect of government grants on plant survival: A micro-econometric analysis' in: International Journal of Industrial Organization, 2007, 25(4), 701-720 )
J2, L2, H2
837 Wendelin Schnedler
What You Always Wanted to Know About Censoring But Never Dared to Ask – Parameter Estimation for Censored Random Vectors
This article considers a wide class of censoring problems and presents a construction rule for an objective function. This objective function generalises the ordinary likelihood as well ...
(published in: Econometric Reviews, 2005, 24 (2), 195-217)
C13, C24
836 Myeong-Su Yun
A Simple Solution to the Identification Problem in Detailed Wage Decompositions
Oaxaca and Ransom (1999) show that a detailed decomposition of the coefficients effect is destined to suffer from an identification problem since the detailed coefficients effect attributed to a ...
(published in: Economic Inquiry, 2005, 43 (4), 766-772)
C20, J70
835 Gilles Joseph
Olivier Pierrard
Henri R. Sneessens
Job Turnover, Unemployment and Labor Market Institutions
This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with ...
(published in: Labour Economics, 2004, 11 (4), 451-468)
E24, J38, J63, J65
833 Hans Gersbach
Structural Reforms and the Macroeconomy: The Role of General Equilibrium Effects
We examine the macroeconomic consequences of industry wage bargaining and product market reforms. We suggest that general equilibrium effects may be important for the evaluation of ...
(published in: R. Solow (ed.), Macroeconomics and Structural Reform, Palgrave 2004)
D58, E24, J50, L50, O33
831 Jaap H. Abbring
Gerard J. van den Berg
Analyzing the Effect of Dynamically Assigned Treatments Using Duration Models, Binary Treatment Models, and Panel Data Models
Often, the moment of a treatment and the moment at which the outcome of interest occurs are realizations of stochastic processes with dependent unobserved determinants. Notably, both treatment and ...
(published in: Empirical Economics, 2004, 29 (1), 5-20)
C14, C31, C41
830 Timothy J. Hatton
Emigration from the UK, 1870-1913 and 1950-1998
The international labour market has not been ‘globalised’ to the same degree over the last 40 years as have international markets for goods and capital. Immigration policies in developed economies ...
(published in: European Review of Economic History, 2004, 8 (2), 149-171)
F2, J6, N3
829 James J. Heckman
Xuesong Li
Selection Bias, Comparative Advantage and Heterogeneous Returns to Education: Evidence from China in 2000
This paper uses newly available Chinese micro data to estimate the return to college education for late 20th century China when allowing for heterogeneous returns among individuals selecting into ...
(published in: Pacific Economic Review, 2004, 9(3), 155-171)
C31
828 Daniele Checchi
Tullio Jappelli
School Choice and Quality
The 1993 Survey of Household Income and Wealth, a representative survey of the Italian population covering 24,000 individuals, reports detailed information on children attendance of public and ...
(published as "The Impact of Perceived Public-School Quality on Private-School Choice in Italy" in: L. Woessmann and P. Petersen (eds.), Schools and the Equal Opportunity Problem, MIT 2007, 293-310)
I21, I22
826 Karsten T. Hansen
James J. Heckman
Kathleen Mullen
The Effect of Schooling and Ability on Achievement Test Scores
This paper develops two methods for estimating the effect of schooling on achievement test scores that control for the endogeneity of schooling by postulating that both schooling and test scores ...
(published in: Journal of Econometrics, 2004, 121 (1-2), 39-98)
C35, C15, I21
825 Antonio Filippin
Andrea Ichino
Gender Wage Gap in Expectations and Realizations
This paper explores the extent to which the gender wage gap is anticipated by workers' expectations. Data collected among second year students of Bocconi University convey information about their ...
(published in: Labour Economics, 2005, 12 (1), 125-145)
J3, J7
822 Doris Weichselbaumer
Rudolf Winter-Ebmer
The Effects of Competition and Equal Treatment Laws on the Gender Wage Differential
This paper evaluates the impact of economic and legal variables on wage differentials between men and women. Since Becker (1957) economists have argued that competitive markets eliminate ...
(published in: Economic Policy, 2007, 22 (50), 235-287)
J16, J31, J71
821 Pedro Carneiro
James J. Heckman
Human Capital Policy
This paper considers alternative policies for promoting skill formation that are targeted to different stages of the life cycle. We demonstrate the importance of both cognitive and noncognitive ...
(published in: J. Heckman and A. Krueger, Inequality in America: What Role for Human Capital Policy?, MIT Press, 2003)
J31
819 Michel Beine
Frédéric Docquier
Hillel Rapoport
Brain Drain and LDCs' Growth: Winners and Losers
We present an empirical evaluation of the growth effects of the brain drain for the source countries of migrants. Using recent US data on migration rates by education levels (Carrington and ...
(new version entitled "Brain drain and human capital formation in developing countries: winners and losers" published in: Economic Journal, 2008, 118 (528), 515-843 )
F22, J24, O15
818 John H. Pencavel
The Surprising Retreat of Union Britain
After expanding in the 1970s, unionism in Britain contracted substantially over the next two decades. This paper argues that the statutory reforms in the 1980s and 1990s were of less consequence in ...
(published in: David Card, Richard Blundell, and Richard B. Freeman (eds.), Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, University of Chicago Press, Chicago and London, 2004, 181-232)
J5
817 Torben M. Andersen
Tryggvi Thor Herbertsson
Measuring Globalization
The multivariate technique of factor analysis is used to combine several indicators of economic integration and international transactions into a single measure or index of globalization. The index ...
(published as 'Quantifying Globalization' in: Applied Economics, 37 (10), 2005, 1089 - 1098 )
F02, C82
815 Arild Aakvik
Kjell G. Salvanes
Kjell Vaage
Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms
The decision to take more education is complex, and is influenced by individual ability, financial constraints, family background, preferences, etc. Such factors, normally unobserved by the ...
(published in: European Economic Review, 2010, 54 (4), 483-500)
C3, I2
814 Geert Ridder
Gerard J. van den Berg
Measuring Labor Market Frictions: A Cross-Country Comparison
In this paper we define and estimate measures of labor market frictions using data on job durations. We compare different estimation methods and different types of data. We propose and apply an ...
(published in: Journal of the European Economic Association, 2003, 1 (1), 224-244 )
J6, J3, C4, C5
813 Edward Lazear
Firm-Specific Human Capital: A Skill-Weights Approach
One problem with the theory of firm-specific human capital is that it is difficult to generate convincing examples of investment that could generate the sometimes observed large and continuing ...
(Journal of Political Economy, 2009, 117 (5), 914 - 940)
M5, J24
812 John T. Addison
Thorsten Schank
Claus Schnabel
Joachim Wagner
German Works Councils in the Production Process
In a sharp break with past German research, some recent estimates have suggested that plants with work councils have 25 to 30 per cent higher productivity than their works-councilfree counterparts. ...
(published in: Schmollers Jahrbuch: Zeitschrift für Wirtschafts- und Sozialwissenschaften/Journal of Applied Social Science Studies, 2006, 126 (2), 251-283)
J50
811 Miles Corak
Wen-Hao Chen
Firms, Industries, and Unemployment Insurance: An Analysis Using Employer-Employee Data
Administrative data on the universe of employees, firms, and unemployment insurance (UI) recipients in Canada over an 11 year period are used to examine the operation of UI using the firm as the ...
(published in: Research in Labor Economics, 2007, 26, 299-336)
J65, H25
809 Simon Commander
Mari Kangasniemi
L. Alan Winters
The Brain Drain: Curse or Boon?
The migration of skilled individuals from developing countries has typically been considered to be costly for the sending country, due to lost investments in education, high fiscal costs and labour ...
(published in: R. Baldwin and L. A. Winters (eds.), Challenges to Globalisation. NBER and University of Chicago Press, 2004)
J6, F2, O1
808 Frédéric Docquier
Hillel Rapoport
Remittances and Inequality: A Dynamic Migration Model
We develop a model of the interdependencies between migration, remittances and inequality, and investigate how migration and subsequent remittances affect inter-household inequality in the origin ...
(new version published in: Journal of Economic Inequality, 2010, 8 (2), 187-200)
O11, O15, J61, D31
806 Gerard J. van den Berg
Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies
It is often argued that a mandatory minimum wage is binding only if the wage density displays a spike at it. In this paper we analyze a model with search frictions and heterogeneous production ...
(published in: International Economic Review, 2003, 44 (4), 1337-1357)
J3, D83, J42, J6, C72
805 Gerard J. van den Berg
Aico van Vuuren
The Effect of Search Frictions on Wages
Labor market theories allowing for search frictions make marked predictions on the effect of the degree of frictions on wages. Often, the effect is predicted to be negative. Despite the popularity ...
(published in: Labour Economics, 2010, 17 (6), 875-885)
J3, J6, J4, C5
802 Heather Antecol
Peter J. Kuhn
Stephen J. Trejo
Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States
How do international differences in labor market institutions affect the nature of immigrant earnings assimilation? Using 1980/81 and 1990/91 cross-sections of census data from Australia, Canada, ...
(published in: Journal of Human Resources, 2006, 41 (4), 821-840)
J38, J64
800 Thomas Beissinger
Christoph Knoppik
Sind Nominallöhne starr? Neuere Evidenz und wirtschaftspolitische Implikationen
Bei Vorliegen nach unten starrer Nominallöhne erschwert niedrige Inflation Reallohnanpassungen und führt so möglicherweise zu erhöhter gleichgewichtiger Arbeitslosigkeit. Dieser Aufsatz analysiert ...
(published in: Perspektiven der Wirtschaftspolitik, 2005, 6 (2), 171-188)
J30, E24, E31, E52
799 Robert A. Hart
General Human Capital and Employment Adjustment in the Great Depression: Apprentices and Journeymen in UK Engineering
The relationship between training and firm-level employment adjustment given an unanticipated fall in product demand has been central to human capital theory. The most cataclysmic negative output ...
(published in: Oxford Economic Papers, 2005, 57 (1), 169-189)
E24, J24, N34
798 James J. Heckman
Jeffrey A. Smith
The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program
This paper decomposes the participation process of a prototypical program into eligibility, awareness, application, acceptance and enrollment. With this decomposition, we determine the sources of ...
(published in: Journal of Labor Economics, 2004, 22 (2), 243-298)
J24
797 Espen Bratberg
Øivind Anti Nilsen
Kjell Vaage
Assessing Changes in Intergenerational Earnings Mobility
Previous research on changes in intergenerational mobility suggests that mobility is decreasing over time. One explanation for this pattern is increased cross-sectional income inequality. In ...
(published as 'Intergenerational Earnings Mobility in Norway: Levels and Trends' in: Scandinavian Journal of Economics, 2005, 107(3), 419-435)
J62, C23
795 Barry Hirsch
Reconsidering Union Wage Effects: Surveying New Evidence on an Old Topic
I examine evidence on private sector union wage gaps in the U.S. The consensus opinion among labor economists of an average union premium of roughly 15 percent is called into question. Two forms of ...
(published in: Journal of Labor Research, 2004, 25 (2), 233-266)
J3, J5, C81
794 Paul Frijters
Michael A. Shields
Stephen Wheatley Price
Investigating the Quitting Decision of Nurses: Panel Data Evidence from the British National Health Service
There is currently a worldwide shortage of registered nurses, driven by large shifts in both the demand for and supply of nurses. Consequently, various policies to increase the recruitment and ...
(published in: Health Economics, 2007, 16 (1), 57-74)
J45, J63, I18
793 Tapio K. Palokangas
Foreign Direct Investment, Labour Market Regulation and Self-Interested Governments
This document examines foreign direct investment (FDI) when multinationals and labour unions bargain over labour contracts and lobby the self-interested government for taxation and labour market ...
(revised version published as "Investment, Expropriation and Unionization" in: Economics of Governance, 2009, 10 (1), 27-42)
F21, F23, J51, D78
792 Lex Borghans
Bas ter Weel
What Happens When Agent T Gets a Computer? The Labor Market Impact of Cost Efficient Computer Adoption
This paper offers a model to explain how computer technology has changed the labor market. It demonstrates that wage differentials between computer users and non-users are consistent with the fact ...
(published in: Journal of Economic Behavior and Organization, 2004, 54 (2), 137-151)
J30, J31, O33
790 Alessandro Cigno
Annalisa Luporini
Anna Pettini
Hidden Information Problems in the Design of Family Allowances
We consider a case where some of the parents have higher ability to raise children than others. First-best policy gives both types of parents the same level of utility. If parental actions are not ...
(published in: Journal of Population Economics, 2004, 17 (4), 645-655)
D13, D82, H31, J13, J24
789 José António Cabral Vieira
Ana Rute Cardoso
Miguel Portela
Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal
This paper aims at quantifying the trend in worker segregation at the establishment level and its impact on wages in Portugal over a fifteen year period. We concentrate on the gender dimension, to ...
(published as 'Gender segregation and the wage gap in Portugal: An analysis at the establishment level' in: Journal of Economic Inequality, 2005, 3 (2), 145-168)
J31, D21, J7
788 Felix Büchel
Joachim R. Frick
Immigrants in the UK and in West Germany – Relative Income Position, Income Portfolio, and Redistribution Effects
Based on data from the BHPS and the GSOEP, we analyse the economic performance of various ethnic groups in the UK and West Germany, as well as the effects of income redistribution on these ...
(published in: Journal of Population Economics, 2004, 17 (3), 553–581)
J15, J18, D31
787 Pietro Garibaldi
Lia Pacelli
Andrea Borgarello
Employment Protection Legislation and the Size of Firms
The existing literature ignores the fact that in most European countries the strictness of Employment Protection Legislation (EPL) varies across the firm size distribution. In Italy firms are ...
(published in: Giornale degli Economisti e Annali di Economia, 2004, 33 (1), 33 - 68)
J4
786 Peter R. Mueser
Kenneth Troske
Alexey Gorislavsky
Using State Administrative Data to Measure Program Performance
This paper uses administrative data from Missouri to examine the sensitivity of job training program impact estimates based on alternative nonexperimental methods. In addition to simple regression ...
(published in: Review of Economics and Statistics, 2007, 89 (4), 761–783.)
J2, J6, C1
785 Rita K. Almeida
The Effects of Foreign Owned Firms on the Labor Market
Cross sectional evidence shows that foreign firms have a more educated workforce and pay higher wages than domestic firms. These results do not necessarily imply that foreign direct investment ...
(published in: Journal of International Economics, 2007, 72 (1), 75-96)
C31, F23, J31
784 Olivier Pierrard
Henri R. Sneessens
Low-Skilled Unemployment, Biased Technological Shocks and Job Competition
The unemployment rise in EU countries has been particularly strong for low-skilled workers. This observation has often been explained in terms of biased technical change and relative wage ...
(revised version published as "Biased Technological Shocks, Relative Wage Rigidities and Low-Skilled Unemployment”in Scottish Journal of Political Economy, 2008, 55(3), 330-352)
E24, J21, J23
783 Barry Hirsch
Edward J. Schumacher
Match Bias in Wage Gap Estimates Due to Earnings Imputation
About 30% of workers in the CPS have earnings imputed. Wage gap estimates are biased toward zero when the attribute being studied (e.g., union status) is not a criterion used to match donors to ...
(published in: Journal of Labor Economics, 2004, 22 (3), 689-722)
J3, J5, C81
782 Maia Güell
Barbara Petrongolo
How Binding Are Legal Limits? Transitions from Temporary to Permanent Work in Spain
In the mid-1980s, several European countries, characterized by high levels of employment protection, introduced fixed-term contracts. Since then most accessions to employment have been through ...
(published in: Labour Economics, 2007, 14 (2), 153-183 )
C41, J41, J60
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