IZA - All published DPs

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No. Author(s) Title JEL Class.
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
757 Jennifer Hunt
Teen Births Keep American Crime High
The United States has a teenage birth rate that is high relative to that of other developed countries, and falling more slowly. Children of teenagers may experience difficult childhoods and hence ...
(published in: Journal of Law and Economics, 2006, 49 (2), 533-566)
J12, K42
756 Nabanita Datta Gupta
Ronald L. Oaxaca
Nina Smith
Swimming Upstream, Floating Downstream: Comparing Women's Relative Wage Positions in the U.S. and Denmark
We compare how U.S. and Danish gender wage gaps have developed between 1983 and 1995 using U.S. PSID and Danish Longitudinal Sample data. Using a new decomposition method, we show that changes in ...
(published in: Industrial and Labor Relations Review, 2006, 59 (2), 243-266)
J7
755 Thomas Dohmen
In Support of the Supporters? Do Social Forces Shape Decisions of the Impartial?
Analyzing the neutrality of referees during nine German premier league (1. Bundesliga) soccer seasons, this paper documents evidence that social forces influence agents' preferences and decisions. ...
(revised version published as IZA DP 1595)
J00, M50
753 Simon Burgess
Hélène Turon
Unemployment Equilibrium and On-the-Job Search
This paper uses the search and matching framework to explore the impact of employed job search on the labour market. The specific features of our model are endogenous employed job search, flows in ...
(published as 'Worker Flows, Job Flows and Unemployment in a Matching Model' in: European Economic Review, 2010, 54 (3), 393-408)
J64
752 Nikolaj Malchow-Møller
Jan Rose Skaksen
Skill-Biased Technological Change in Denmark: A Disaggregate Perspective
In this paper, we provide an industry-level analysis of skill-biased technological change (SBTC) in Denmark over the last two decades. The analysis shows that SBTC has varied considerably across ...
(published as 'Changes in Demand for Skilled Labour in Denmark - A Disaggregate Perspective' in: Nationaløkonomisk Tidsskrift / Danish Journal of Economics, 2004, 142 (1), 67 - 80)
J24, J31, L6
751 Lex Borghans
Bas ter Weel
Are Computer Skills the New Basic Skills? The Returns to Computer, Writing and Math Skills in Britain
The large increase in computer use has raised the question whether people have to be taught computer skills before entering the labour market. Using data from the 1997 Skills Survey of the Employed ...
(published in: Labour Economics, 2004, 11 (1), 85-98)
J30, J31
750 Reinhard Hujer
Marco Caliendo
Stephan L. Thomsen
New Evidence on the Effects of Job Creation Schemes in Germany - A Matching Approach with Threefold Heterogeneity
This paper evaluates the effects of job creation schemes on the participating individuals in Germany. Since previous empirical studies of these measures have been based on relatively small datasets ...
(published in: Research in Economics, 2004, 58(4), 257-302 )
H43, J64, J68, C13, C40
749 Vibeke Jakobsen
Nina Smith
The Educational Attainment of the Children of the Danish ‘Guest Worker’ Immigrants
This paper analyses the educational attainment of young first generation immigrants in Denmark who are children of the ‘guest workers’ who immigrated from Turkey, Pakistan and Ex-Yugoslavia in the ...
(published in: Danish Economic Journal, 2006, 144 (2), 18-42)
J61, J24
748 Michael P. Pflüger
Economic Integration, Wage Policies and Social Policies
This paper uses a two country trade and geography model of monopolistic competition to study the effects of wage policies and social policies on the location of industry. It is first shown that a ...
(published in: Oxford Economic Papers, 2004, 56 (1), 135-150)
F12, F15, F16, F21, F22, R12
747 Julián Messina
Sectoral Structure and Entry Regulations
The sectoral allocation of labor differs considerably across developed economies, even in the presence of similar patterns of structural change. A general equilibrium model that captures the ...
(revised version published as 'The role of product market regulations in the process of structural change' in: European Economic Review, 2006, 50 (7), 1863-1890)
O11, O41, L5
746 Andreas Ammermüller
Hans Heijke
Ludger Woessmann
Schooling Quality in Eastern Europe: Educational Production During Transition
We estimate educational production functions for seven Eastern European transition countries, using student-level TIMSS data for lower secondary education. The results show substantial effects of ...
(published in: Economics of Education Review, 2005, 24 (5), 579-599)
I21, P36
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