IZA - All published DPs

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No. Author(s) Title JEL Class.
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
745 Ludger Woessmann
Educational Production in East Asia: The Impact of Family Background and Schooling Policies on Student Performance
East Asian students regularly take top positions in international league tables of educational performance. Using internationally comparable student-level data, I estimate how family background and ...
(published in: German Economic Review, 2005, 6 (3), 331-353)
O15, I20, H52
744 Martin R. West
Ludger Woessmann
Which School Systems Sort Weaker Students into Smaller Classes? International Evidence
We examine whether the sorting of differently achieving students into differently sized classes results in a regressive or compensatory pattern of class sizes for a sample of national school ...
(published in: European Journal of Political Economy, 2006, 22 (4), 944-968)
I28, H52, D73
742 Richard A. Easterlin
Building a Better Theory of Well-Being
What do social surveys of life cycle experience tell us about the determinants of subjective well-being? First, that the psychologists’ setpoint model is wrong. Life events in the nonpecuniary ...
(published in: Luigino Bruni and Pierluigi Porta (eds.), Economics and Happiness: Framing the Analysis, Oxford University Press, 2006)
D60, I10, I31, J12, Z13
741 Barry Hirsch
David A. Macpherson
Wages, Sorting on Skill, and the Racial Composition of Jobs
Wages for black and white workers are substantially lower in occupations with a high density of black employees, following standard controls. Such correlations can exist absent discrimination or as ...
(published in: Journal of Labor Economics, 2004, 22 (1), 189-210)
J3, J7
740 Barry Hirsch
Stephen L. Mehay
Evaluating the Labor Market Performance of Veterans Using a Matched Comparison Group Design
A key concern in estimating the effect of military service on civilian earnings is bias from unmeasured differences between military veterans and nonveterans. The effects of activeduty service are ...
(published in: Journal of Human Resources, 2003, 38 (3), 673-700)
J3
738 Volker Grossmann
Managerial Job Assignment and Imperfect Competition in Asymmetric Equilibrium
This paper develops a model with multiple market locations in which the quality of intangible assets of firms, provided by management, determines the firms’ performance. Despite an ex ante symmetry ...
(published as "Firm Size, Productivity, and Manager Wages: A Job Assignment Approach" in: B.E. Journal of Theoretical Economics: Advances in Theoretical Economics, 2007, 7 (1), Article 8)
D40, J31, L16
737 Alison L. Booth
Marco Francesconi
Gylfi Zoega
Unions, Work-Related Training, and Wages: Evidence for British Men
Using data from the British Household Panel Survey from 1991 to 1996, the authors investigate the impact of union coverage on work-related training and how the union-training link affects wages and ...
(published in: Industrial and Labor Relations Review, 2003, 57 (1), 68-91 )
J24, J31, J41
735 Raphaël Desmet
Alain Jousten
Sergio Perelman
Pierre Pestieau
Micro-Simulation of Social Security Reforms in Belgium
The present paper analyzes the budgetary impact of various Social Security reforms in the Belgian institutional setting. Our approach relies on parameters that were derived in Dellis et alii (2002) ...
(published in: J. Gruber and D. Wise, (eds.), “Social Security Programs and Retirement around the World: Fiscal Implications of Reform”, 2007, University of Chicago Press and NBER)
J0, I3, H3
734 Stefan C. Wolter
Sibling Rivalry: A Six Country Comparison
In this paper we analyse with the PISA data on literacy achievement of fifteen-year-old pupils in six member countries of the OECD, whether the fact of having many siblings affects the individual ...
(published together with Maja Coradi Vellacott as 'Sibling Rivalry for Parental Resources: A Problem for Equity in Education? A Six-Country Comparison with PISA Data' in: Schweizerische Zeitschrift für Soziologie / Swiss Journal of Sociology /Revue suisse de sociologie , 2003, 29 (3), 377-398)
D1, I2, J2
733 Stefan C. Wolter
Stefan Denzler
Wage Elasticity of the Teacher Supply in Switzerland
In order to learn more about the wage elasticity of the teacher supply in Switzerland, this paper estimates wages for teachers and non-teachers. The data used are ten surveys of graduates of all ...
(published in: Brussels Economic Review / Cahiers Economiques de Bruxelles, 2004, 47 (3), 387-408)
I2, J24, J45
732 Armin Falk
Andrea Ichino
Clean Evidence on Peer Pressure
While confounding factors typically jeopardize the possibility to use observational data to measure peer effects, field experiments offer the possibility to obtain clean evidence. In this paper we ...
(published in: Journal of Labor Economics, 2006, 24 (1), 39-57)
D2, J2, K4
731 Barry R. Chiswick
Noyna DebBurman
Educational Attainment: Analysis by Immigrant Generation
This paper presents a theoretical and empirical analysis of the largely ignored issue of the determinants of the educational attainment of adults by immigrant generation. Using Current Population ...
(published in: Economics of Education Review, 2004, 23 (4), 361-379)
I21, J24, J61
730 Mariacristina Piva
Marco Vivarelli
Innovation and Employment: Evidence from Italian Microdata
The microeconomic empirical literature devoted to the link between innovation and employment tends to suggest that technological change has a positive effect on jobs, at least at the level of the ...
(published in: Journal of Economics, 2005, 86(1), 65-83)
O33
728 Michael Lechner
Jeffrey A. Smith
What is the Value Added by Caseworkers?
We investigate the allocation of unemployed individuals to different subprograms within Swiss active labour market policy by the caseworkers at local employment offices in Switzerland in 1998. We ...
(published in: Labour Economics, 2007, 14 (2), 135-151)
J68, H00
727 Martin Raiser
Mark E Schaffer
Johannes Schuchhardt
Benchmarking Structural Change in Transition
The transition to market-based economic systems in the countries of Central and Eastern Europe and the former Soviet Union involves fundamental shifts in the allocation of resources and deep ...
(published in: Structural Change and Economic Dynamics, 2004, 15 (1), 47-81)
O14, O40, P20
726 Steffen Habermalz
Job Matching and the Returns to Educational Signals
This paper develops a multi-period model, in which workers are matched with jobs according to imperfect educational signals and in which their subsequent productivities depend on both their ...
(published as 'More Detail on the Pattern of Returns to Educational Signals' in: Southern Economic Journal, 2006, 73 (1), 125–135)
I20, J41, D8
724 John T. Addison
Ralph Bailey
W. Stanley Siebert
The Impact of Deunionisation on Earnings Dispersion Revisited
This paper examines the effects of union decline in Britain on changes in earnings dispersion between 1983 and 1995. As part and parcel of the exercise, the effects of changes in the wage gap and ...
(published in: Research in Labor Economics, 2007, 26, 337-363)
D3, J31, J51
723 Melvyn Coles
Barbara Petrongolo
A Test between Unemployment Theories Using Matching Data
This paper tests whether aggregate matching is consistent with unemployment being mainly due to search frictions or due to job queues. Using U.K. data and correcting for temporal aggregation bias, ...
(published in: International Economic Review, 2008, 49 (4), 1113-1141 )
E24, J41, J63, J64
722 C. Katharina Spieß
Felix Büchel
Gert G. Wagner
Children's School Placement in Germany: Does Kindergarten Attendance Matter?
The positive effects of early childhood programs on children's school success have been demonstrated in the literature. However, most studies were completed in the U.S.A., where early childhood ...
(published in: Early Childhood Research Quarterly, 2003, 18 (2), 255-270)
I21, I28
721 Harminder Battu
McDonald Mwale
Yves Zenou
Do Oppositional Identities Reduce Employment for Ethnic Minorities?
We develop a model in which non-white individuals are defined with respect to their social environment (family, friends, neighbors) and their attachments to their culture of origin (religion, ...
(published as 'Oppositional identities and the labor market' in: Journal of Population Economics, 2007, 20 (3), 643-667)
J15
720 Tapio K. Palokangas
Labour Market Regulation, Productivity-Improving R&D and Endogenous Growth
We present a growth model in which R&D increases productivity, union-firm bargaining determines the distribution of rents and the government can support unions by labour market regulation. We show ...
(published as "Union-Firm Bargaining, Productivity Improvement and Endogenous Growth" in: Labour, 2004, 18 (2), 191-205)
O40, J50
719 James Albrecht
Pieter A. Gautier
Susan Vroman
Equilibrium Directed Search with Multiple Applications
We analyze a model of directed search in which unemployed job seekers observe all posted wages. We allow for the possibility of multiple applications by workers and ex post competition among ...
(published in: Review of Economic Studies, 2006, 73 (4), 869-891)
J64, D83, J41
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