IZA - All published DPs

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No. Author(s) Title JEL Class.
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
780 Axel Engellandt
Regina T. Riphahn
Temporary Contracts and Employee Effort
Temporary contracts provide employers with a tool to screen potential new employees and have been shown to provide "stepping stones" into permanent employment for workers. For both reasons workers ...
(published in: Labour Economics, 2005, 12 (3), 281-299)
J24, J41, M50, C25
779 Martin Biewen
Who Are the Chronic Poor? Evidence on the Extent and the Composition of Chronic Poverty in Germany
Based on a multiple spells approach, this paper studies the extent and the composition of chronic poverty in Germany. The results indicate that about one third of cross-sectional poverty in a given ...
(published in: Research on Economic Inequality, 2006, 13 (1), 31-62)
C23, D31, I32
777 Armin Falk
Michael Kosfeld
It's all about Connections: Evidence on Network Formation
We present an economic experiment on network formation, in which subjects can decide to form links to one another. Direct links are costly but being connected is valuable. The gametheoretic basis ...
(published in: Review of Network Economics: 2012, 11 (3), Article 2)
C92, C72, D63, Z13
776 Laura Arranz-Aperte
Almas Heshmati
Determinants of Profit Sharing in the Finnish Corporate Sector
This study investigates the role of factors that determine individual employees’ and firms’ participation in profit sharing schemes. Using a large panel data of Finnish employees for the period ...
(published in: Indian Economic Review, 2004, 39 (1), 55-79)
C23, E24, J30, J41
775 James J. Heckman
Lance John Lochner
Petra E. Todd
Fifty Years of Mincer Earnings Regressions
The Mincer earnings function is the cornerstone of a large literature in empirical economics. This paper discusses the theoretical foundations of the Mincer model and examines the empirical support ...
(updated version published as 'Earnings Functions and Rates of Return' in: Journal of Human Capital, 2008, 2 (1), 1-31 )
C31
774 Amelie F. Constant
Douglas S. Massey
Labor Market Segmentation and the Earnings of German Guestworkers
In this paper we study the occupational progress and earnings attainment of immigrants in Germany over time and compare them to native Germans. Our analysis is guided by the human capital and ...
(published in: Population Research and Policy Review, 2005, 24 (6), 5-30)
J2, J3, J4, J6, J7
773 Axel Heitmueller
Job Mobility in Britain: Are the Scots Different? Evidence from the BHPS
The Scottish extension-sample of the British Household Panel Study (BHPS) is used to shed light on differences in job mobility patterns in England and Scotland for both men and women. Based on ...
(published in: Scottish Journal of Political Economy, 2004, 51(3), 329-358)
J60, J62, C25
772 Eleonora Patacchini
Yves Zenou
Search Intensity, Cost of Living and Local Labor Markets in Britain
A model is considered in which optimal search intensity is a result of a tradeoff between short-run losses due to higher search costs (more interviews, commuting…) and long-run gains due to a ...
(published in: Regional Science and Urban Economics, 2006, 36(2), 227-248)
C23, D83, J64, R1
771 Antoni Calvó-Armengol
Yves Zenou
Job Matching, Social Network and Word-of-Mouth Communication
Workers are embedded within a network of social relationships and can communicate through word-of-mouth. They can find a job either directly or through personal contacts. From this micro scenario, ...
(published in: Journal of Urban Economics, 2005, 57 (3), 500-522)
D83, J64
770 Axel Heitmueller
Coordination Failures in Network Migration
Previous migration facilitates future population moves, a phenomenon called network migration. However, thus far, network migration has been closely linked to network externalities. In contrast, ...
(published in: Manchester School, 2006, 74(6), 701-710)
J60, J61, C70
769 Lennart Flood
Jörgen Hansen
Roger Wahlberg
Household Labor Supply and Welfare Participation in Sweden
In this paper, we formulate and estimate a structural, static model of household labor supply and multiple welfare program participation. Given the complicated nature of both the income tax ...
(published in Journal of Human Resources, 2004, 39 (4), 1008-1032)
J2
768 James J. Heckman
Salvador Navarro
Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models
This paper investigates four topics. (1) It examines the different roles played by the propensity score (probability of selection) in matching, instrumental variable and control functions methods. ...
(published in: Review of Economics and Statistics, 2004, 86(1), 30-57)
C31
767 Pedro Carneiro
Karsten T. Hansen
James J. Heckman
Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice
This paper uses factor models to identify and estimate distributions of counterfactuals. We extend LISREL frameworks to a dynamic treatment effect setting, extending matching to account for ...
(published in: International Economic Review, 2003, 44 (2), 361-422)
C31
765 Wendelin Schnedler
On the Prudence of Rewarding A While Hoping for B
In multiple-task hidden-action models, the (mis-)allocation of effort may play an important role for benefit creation. Signals which capture this benefit and which are used in incentive schemes ...
(improved version available as IZA Discussion Paper No. 2124)
M52, D82, M41
764 Patrick A. Puhani
A Test of the 'Krugman Hypothesis' for the United States, Britain, and Western Germany
Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment (with rather stable wage inequality) have led to a popular view in the ...
(published as 'Transatlantic Differences in Labour Markets: Changes in Wage and Non-Employment Structures in the 1980s and the 1990s' in: German Economic Review, 2008, 9 (3), 312-338)
E24, J21, J31, J64
763 Martin Biewen
Stephen P. Jenkins
Estimation of Generalized Entropy and Atkinson Inequality Indices from Complex Survey Data
Applying a method suggested by Woodruff (1971), we derive the sampling variances of Generalized Entropy and Atkinson inequality indices when estimated from complex survey data. It turns out that ...
(revised version published in: Oxford Bulletin of Economics and Statistics, 2006, 68 (3), 371-383 )
C14, D31
762 Michael Gerfin
Robert E. Leu
The Impact of In-Work Benefits on Poverty and Household Labour Supply: A Simulation Study for Switzerland
Income support for working low income families (the “working poor”) is on top of the political agenda in Switzerland. The current social assistance system is considered inadequate to support ...
(revised version published as ''Evaluationg the Cost-Effectiveness of In-Work Benefits: A Simulation Study for Switzerland' in: German Economic Review, 2007, 8 (4), 447 - 467)
I38, J22, C25
761 Edward Lazear
Output-Based Pay: Incentives, Retention or Sorting?
Variable pay, defined as pay that is tied to some measure of a firm’s output, has become more important for executives of the typical American firm. Variable pay is usually touted as a way to ...
(published in: Research in Labor Economics, 2004, 23, 1-25)
J3
759 Edward Lazear
The Peter Principle: A Theory of Decline
Some have observed that individuals perform worse after being promoted. The Peter Principle, which states that people are promoted to their level of incompetence, suggests that something is ...
(published in: Journal of Political Economy, 2004, 112 (S1), S141-S163)
J00, J6
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