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  • 1
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-02-07
    Description: In this article, we investigate the role of several types of educational mismatch in explaining labour market transitions of workers with secondary and higher education. We focus on transitions from employment to unemployment and on job changes, to assess whether mismatch is a temporary or a permanent phenomenon. In the first case, as suggested by matching models, mismatch will be eliminated through job-to-job transitions. In the second case, it might be permanent and caused by employment discontinuity and deskilling processes. By using information from the Italian Survey of Professions (ICP) and the Survey on Labour Participation and Unemployment (PLUS), we calculate three measures of vertical mismatch. This allows comparing the outcomes from self-reported and revealed match measures in order to assess the robustness of the results. In addition, we use a measure of horizontal mismatch and evaluated the effect of Routine Bias Technical change (RBTC) in terms of unemployment risk, through a Routine Task Index (RTI) calculated on Italian data. Results indicate that mismatched workers are at risk of long-term unemployment. More specifically, among workers with higher education, the risk is due to mismatches in the field of studies whereas for secondary educated workers, over-education is the main cause of unemployment risk. The effect of the RTI is often not significant. This adds evidence to the problem of skill gap in Italy, as educational choices are not aligned to market needs. In this respect, both demand side and supply side policies are needed to allow firms to better use this human capital.
    Keywords: D91 ; J24 ; J64 ; J82 ; ddc:330 ; higher education ; over-education ; educational mismatch ; routine bias technical change ; unemployment ; Italy
    Language: English
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  • 2
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2020-02-08
    Description: Paid parental leave schemes have been shown to increase women's employment rates but decrease their wages in case of extended leave durations. In view of these potential trade-offs, many countries are discussing the optimal design of parental leave policies. We analyze the impact of a major parental leave reform on mothers' long-term earnings. The 2007 German parental leave reform replaced a means-tested benefit with a more generous earnings-related benefit that is granted for a shorter period of time. Additionally, a "daddy quota" of two months was introduced. To identify the causal effect of this policy on long-run earnings of mothers, we use a difference-in-difference approach that compares labor market outcomes of mothers who gave birth just before and right after the reform and nets out seasonal effects by including the year before. Using administrative social security data, we confirm previous findings and show that the average duration of employment interruptions increased for high-income mothers. Nevertheless, we find a positive long-run effect on earnings for mothers in this group. This effect cannot be explained by changes in working hours, observed characteristics, changes in employer stability or fertility patterns. Descriptive evidence suggests that the stronger involvement of fathers, incentivized by the "daddy months", could have facilitated mothers' re-entry into the labor market and thereby increased earnings. For mothers with low prior-to-birth earnings, however, we do not find any beneficial labor market effects of this parental leave reform.
    Keywords: H31 ; J13 ; J22 ; J24 ; J31 ; ddc:330 ; parental leave ; wages ; labor supply
    Language: English
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  • 3
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-02-12
    Description: This paper investigates the presence of explicit labour-saving heuristics within robotic patents. It analyses innovative actors engaged in robotic technology and their economic environment (identity, location, industry), and identifies the technological fields particularly exposed to labour-saving innovations. It exploits advanced natural language processing and probabilistic topic modelling techniques on the universe of patent applications at the USPTO between 2009 and 2018, matched with ORBIS (Bureau van Dijk) firm-level dataset. The results show that labour-saving patent holders comprise not only robots producers, but also adopters. Consequently, labour-saving robotic patents appear along the entire supply chain. The paper shows that labour-saving innovations challenge manual activities (e.g. in the logistics sector), activities entailing social intelligence (e.g. in the healthcare sector) and cognitive skills (e.g. learning and predicting).
    Keywords: O33 ; J24 ; C38 ; ddc:330 ; Robotic Patents ; Labour-Saving Technology ; Search Heuristics ; Probabilistic Topic Models
    Language: English
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  • 4
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-02-15
    Description: This study aims to fill the gap in our understanding about exposure to particulate matters with diameter less than 2.5 μm (PM2.5) and attributable risks and economic costs of mental disorders (MDs). We identify the relationship between PM2.5 and risk of hospital admissions (HAs) for MDs in Beijing and measure the attributable risk and economic cost. We apply a generalized additive model (GAM) with controls for time trend, meteorological conditions, holidays and day of the week. Stratified analyses are performed by age, gender and season. We further estimate health and economic burden of HAs for MDs attributable to PM2.5. A total of 17,252 HAs for MDs are collected. We show that PM2.5 accounts for substantial morbidity and economic burden of MDs. Specifically, a 10 μg/m3 daily increase in PM2.5 is associated with a 3.55% increase in the risk of HAs for MDs, and the effect is more pronounced for older males in colder weather. According to the WHO's air quality guidelines, 15.12 percent of HAs and 16.19 percent of related medical expenses for MDs are respectively attributable to PM2.5.
    Keywords: Q51 ; Q53 ; I24 ; I31 ; G11 ; G41 ; J24 ; ddc:330 ; Attributable risk ; Economic cost ; Hospital admissions ; Mental disorders ; PM2.5
    Language: English
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  • 5
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2020-02-27
    Description: We analyze self-selection of refugees and irregular migrants and test our theory in the context of the European refugee crisis. Using unique datasets from the International Organization for Migration and Gallup World Polls, we provide the first large-scale evidence on reasons to emigrate, and the self-selection and sorting of refugees and irregular migrants. Refugees and female irregular migrants are positively self-selected with respect to human capital, while male irregular migrants are negatively self-selected. These patterns are similar when analyzing individually stated main reason to emigrate, country-level conflict intensity, and sub-regional conflict intensity. Migrants respond to economic incentives and border policies.
    Keywords: F22 ; J15 ; J16 ; J24 ; O15 ; ddc:330 ; international migration ; refugees ; irregular migrants ; self-selection ; human capital ; gender differences in migration
    Language: English
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  • 6
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-04
    Description: Purpose – The purpose of this paper is to identify and discuss the on-the-job resilience strategies of mismatched workers. We empirically focus on Egyptian workers.Design/Methodology/Approach – This study relies on a primary micro-data collection based on design and implementation of a self-administered questionnaire survey and on the conduction of a series of semi-structured interviews. Findings – The results are fourfold: first, the combination of over-qualification and under-skilling is the most frequent in our sample; second, resilience strategies adopted by over-skilled workers mainly depend on mobility and entry to entrepreneurship; third, under-skilled workers do not enter entrepreneurship, but tend to rely on informal on-the-job learning and training opportunities. Fourth, religion and spirituality play a transversal role to cope with adversity for all of our interviewed workers. Originality/value – This study is unique as it draws our attention on factors of resilience for mismatched workers in a developing country, Egypt.
    Keywords: J24 ; E24 ; C81 ; ddc:330 ; resilience strategies ; skill mismatches ; qualification mismatches ; Egypt
    Language: English
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  • 7
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-06
    Description: Purpose - The purpose of this paper is to explore the mechanisms underlying hiring discrimination against transgender men. Design/methodology/approach - The authors conduct a scenario experiment with final-year business students in which fictitious hiring decisions are made about transgender or cisgender male job candidates. More importantly, these candidates are scored on statements related to theoretical reasons for hiring discrimination given in the literature. The resulting data are analysed using a bivariate analysis. Additionally, a multiple mediation model is run. Findings - Suggestive evidence is found for co-worker and customer taste-based discrimination, but not for employer taste-based discrimination. In addition, results show that transgender men are perceived as being in worse health, being more autonomous and assertive, and have a lower probability to go on parental leave, compared with cisgender men, revealing evidence for (positive and negative) statistical discrimination. Social implications - Targeted policy measures are needed given the substantial labour market discrimination against transgender individuals measured in former studies. However, to combat this discrimination effectively, one needs to understand its underlying mechanisms. This study provides the first comprehensive exploration of these mechanisms. Originality/value - This study innovates in being one of the first to explore the relative empirical importance of dominant (theoretical) explanations for hiring discrimination against transgender men. Thereby, the authors take the logical next step in the literature on labour market discrimination against transgender individuals.
    Keywords: J15 ; J71 ; J16 ; J24 ; J23 ; ddc:330 ; Transgender men ; fictitious hiring decisions ; theories of discrimination ; signalling ; scenario experiment ; risk aversion
    Language: English
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  • 8
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-05
    Description: In recent years, there has been an escalation of concern revolving around the effect that automation will have on the future of work. This anxiety has fueled the public and academic debate, fearing that soon this technology will displace jobs at a large scale. Numerous studies have begun to investigate automation's impact on labor markets, although all have focused on industrialized nations, which consist of more service and skilled occupations. Utilizing the World Bank's STEP Skills Measurement Program Database, we examine automation's effect on 10 developing countries throughout Latin America, Africa, and Asia. To address the heterogeneity of occupations across the country, we apply a task-based approach and re-calibrate the effect of automation on labor market while analyzing the task structure across countries. Modeling off previous studies, we created an expectation-maximization algorithm to predict the percentage of tasks that are likely to be automated. Jobs whose task automation output was 70% or higher were then considered to be highly automatable. Our results suggest that these developing countries have higher levels of predicted automation risk. Countries range in their level of highly automatable jobs from the lowest being Yunnan -a Chinese province- with 7.7% to the highest of Ghana with 42.4%. We find that occupations containing relatively more routine tasks are more likely to be automated, while workers with a higher level of education reduce their risks. This is the first paper to estimate automation risk rates for developing nations.
    Keywords: J23 ; J24 ; O33 ; ddc:330 ; Automation ; Developing economies ; digitalization ; technological change ; labor demand
    Language: English
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  • 9
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    Mannheim: ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
    Publication Date: 2020-03-05
    Description: Skilled labor is a key input to the innovation process. A shortage in supply of skilled labor may hence impede innovation activities, resulting in lower productivity gains. While governments are concerned about these likely negative impacts, there is only limited empirical evidence whether and to what extent labor shortage affects innovation activities. The paper addresses this question using panel data from three waves (2017 to 2019) of the German innovation survey. We measure labor shortage by job openings that could not be filled at all, not with the required skills or only with significant delay, distinguishing different skill levels. We analyze whether labor shortage resulted in stopping or abandoning of innovation projects. Endogeneity issues are tackled by instrumental variable estimation techniques. Our results show that innovative firms are more likely to be subject to skill shortage, whereas skill shortage induces the cancelation of innovation projects. Effects are stronger for labor shortage related to professional occupations and less for academic qualifications.
    Keywords: J23 ; J24 ; O31 ; C26 ; ddc:330 ; community Innovation Survey ; labor shortage ; innovation ; probit instrumental variable estimation
    Language: English
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  • 10
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-05
    Description: This paper provides a comprehensive quantitative assessment of the employment performance of first- and second-generation immigrants in Belgium compared to that of natives. Using detailed quarterly data for the period 2008-2014, we find not only that first-generation immigrants face a substantial employment penalty (up to -36% points) vis-à-vis their native counterparts, but also that their descendants continue to face serious difficulties in accessing the labour market. The social elevator appears to be broken for descendants of two non-EU-born immigrants. Immigrant women are also found to be particularly affected. Among the key drivers of access to employment, we find: i) education for the descendants of non-EU-born immigrants, and ii) proficiency in the host country language, citizenship acquisition, and (to a lesser extent) duration of residence for first-generation immigrants. Finally, estimates suggest that around a decade is needed for the employment gap between refugees and other foreign-born workers to be (largely) suppressed.
    Keywords: J15 ; J16 ; J21 ; J24 ; J61 ; ddc:330 ; First- and second-generation immigrants ; employment ; moderating factors
    Language: English
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  • 11
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-12
    Description: Identifying the determinants of intergenerational mobility is an important aim in the development literature. In this article, intergenerational transmission is examined for 6 neglected Latin American Economies (Brazil, Costa Rica, Ecuador, Mexico, Panama and Puerto Rico). We use a multinomial logit model of the determinants of choosing a white-collar job for a child of a father working in farming as compared to a child whose father had a blue- or a white-collar job. Our findings show that, in the studied countries, intergenerational occupation transmission is mainly linked to low skilled jobs. Our analysis confirms the low degree of social mobility typical of Latin America, contributing, in turn, to explain their low growth rate. Our findings help identifying specific target groups - talented young women coming from the agricultural sector - to develop in them soft skills while at primary or low secondary school and work-related skills while at the high secondary school or at the university.
    Keywords: D60 ; I30 ; J24 ; J6 ; J62 ; ddc:330 ; Intergenerational occupational mobility ; Intergenerational mobility ; Latin American countries
    Language: English
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  • 12
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-12
    Description: As work changes, firm-provided training may become more relevant for good economic and social outcomes. However, so far there is little or no causal evidence about the effects of training on firms. This paper studies a large training grants programme in Portugal, contrasting successful firms that received the grants and unsuccessful firms that did not. Combining several rich data sets, we compare a large number of potential outcomes of these firms, while following them over long periods of time before and after the grant decision. Our difference-in-differences models estimate significant positive effects on take up (training hours and expenditure), with limited deadweight; and that such additional training led to increased sales, value added, employment, productivity, and exports. These effects tend to be of at least 5% and, in some cases, 10% or more.
    Keywords: J24 ; H43 ; M53 ; ddc:330 ; Training subsidies ; Productivity ; Counterfactual evaluation
    Language: English
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  • 13
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2020-03-17
    Description: As China's firms upgrade their position in the quality ladder, vocational education may become more important. In this paper, we study returns to secondary vocational education in China paying attention to individual heterogeneity. We use instrumental variables based on geographical and longitudinal changes in enrolment to address the selection between the two types of education. We find that vocational education provides a wage premium vis-à-vis academic education of over 30% but which applies only for individuals at the middle of the conditional wage distribution.
    Keywords: I26 ; I25 ; J24 ; J31 ; C36 ; ddc:330 ; Human capital ; vocational education ; quantile treatment effects
    Language: English
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  • 14
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    Munich: Center for Economic Studies and Ifo Institute (CESifo)
    Publication Date: 2020-03-25
    Description: This article reviews the recent literature in economics on small-scale entrepreneurship ("microentrepreneurship") in low-income countries. Major themes in the literature include the determinants and consequences of joining the formal sector; the impacts of access to credit and other financial services; the impacts of business training; barriers to hiring; and the distinction between self-employment by necessity and self-employment as a calling. The article devotes special attention to unique issues that arise with female entrepreneurship.
    Keywords: L26 ; J16 ; J24 ; ddc:330
    Language: English
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  • 15
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    Munich: Center for Economic Studies and Ifo Institute (CESifo)
    Publication Date: 2020-03-25
    Description: We analyze inequality and mobility across generations in a dynastic economy. Nurture, in terms of bequests and the schooling investment into the next generation, is observable but the draw of nature in terms of ability is hidden, stochastic and persistent across generations. We calibrate the model to U.S. data to illustrate mechanisms through which nurture and nature affect mobility and the transmission of income inequality across generations, thus complementing the vast empirical literature. To provide a benchmark for the observed status quo, we solve for the social optimum in which the planner weighs dynasties equally and chooses optimal tax schedules subject to incentive compatibility. Analyzing the transition from the calibrated steady state to this social optimum, we find that insurance against intergenerational ability risk increases on the transition path by making welfare of family dynasties more dependent on nurture relative to nature. The insurance comes at the cost of less social mobility. We compare welfare in the social optimum and economies with a simple history-independent tax and subsidy system.
    Keywords: E24 ; H21 ; I24 ; J24 ; J62 ; ddc:330 ; human capital ; schooling ; bequests ; asymmetric information ; intergenerational mobility ; inequality
    Language: English
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  • 16
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This research establishes the influence of linguistic traits on human behavior. Exploiting variations in the languages spoken by children of migrants with identical ancestral countries of origin, the analysis indicates that the presence of periphrastic future tense, and its association with long-term orientation has a significant positive impact on educational attainment, whereas the presence of sex-based grammatical gender, and its association with gender bias, has a significant adverse impact on female educational attainment.
    Keywords: D91 ; I25 ; J16 ; J24 ; Z10 ; Z13 ; ddc:330 ; human capital ; long-term orientation ; gender bias ; periphrastic future tense ; sex-based grammatical gender ; culture ; language
    Language: English
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  • 17
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This paper investigates the presence of explicit labour-saving heuristics within robotic patents. It analyses innovative actors engaged in robotic technology and their economic environment (identity, location, industry), and identifies the technological fields particularly exposed to labour-saving innovations. It exploits advanced natural language processing and probabilistic topic modelling techniques on the universe of patent applications at the USPTO between 2009 and 2018, matched with ORBIS (Bureau van Dijk) firm-level dataset. The results show that labour-saving patent holders comprise not only robots producers, but also adopters. Consequently, labour-saving robotic patents appear along the entire supply chain. The paper shows that labour-saving innovations challenge manual activities (e.g. in the logistics sector), activities entailing social intelligence (e.g. in the healthcare sector) and cognitive skills (e.g. learning and predicting).
    Keywords: O33 ; J24 ; C38 ; ddc:330 ; robotic patents ; labour-saving technology ; search heuristics ; probabilistic topic models
    Language: English
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  • 18
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: We propose a simple theory of under- and over-employment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low-type workers can perform skilled jobs. People have different non-pecuniary values over these jobs, akin to a Roy model. We calibrate two versions of the model to match moments of 17 OECD economies, considering separately education and skills mismatch. The cost of mismatch is 3% of output on average but varies between -1% to 9% across countries. The key variable that explains the output cost of mismatch is not the percentage of mismatched workers but their wage relative to well-matched workers.
    Keywords: E24 ; J24 ; ddc:330 ; education mismatch ; skill mismatch
    Language: English
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  • 19
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: Rising inequality in the United States has raised concerns about potentially widening gaps in educational achievement by socio-economic status (SES). Using assessments from LTT-NAEP, Main-NAEP, TIMSS, and PISA that are psychometrically linked over time, we trace trends in achievement for U.S. student cohorts born between 1954 and 2001. Achievement gaps between the top and bottom quartiles of the SES distribution have been large and remarkably constant for a near half century. These unwavering gaps have not been offset by improved achievement levels, which have risen at age 14 but have remained unchanged at age 17 for the past quarter century.
    Keywords: H4 ; I24 ; J24 ; ddc:330 ; student achievement ; inequality ; socio-economic status ; United States ; NAEP ; TIMSS ; PISA
    Language: English
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  • 20
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: In this paper we examine the education and occupation mismatch for Hispanics in the US using a novel objective continuous mismatch index and explore the role of immigrants' social networks on this mismatch. We explore whether having a larger social network helps Hispanics in finding jobs that better match with their skill and education levels or whether living in areas with larger concentration of Hispanics leads to more competition for the same jobs in the labor market. Given that the legal status of immigrants influence how the social networks are leveraged and their impact on labor market outcomes, we focus on the citizenship status for Hispanics. The quality of match between Hispanic's college degree major and occupation is measured using one of the continuous indices proposed in Rios-Avila and Saavedra-Caballero (2019) and calculated using pooled data for all college graduates in the US from 2010 to 2017. The Hispanic networks measures are constructed as the share of Hispanic population who are 25 years or older with respect to the total population of the same age and the second measure only includes Hispanics with at least a bachelor's degree using the weighted pooled data from 2010 to 2015. We find that networks have a positive impact on the job-match quality, but mostly for Hispanic citizens and this effect is stronger when the networks constitutes of at least a college degree. This shows that Hispanic citizens living in higher concentration of Hispanic college graduates are better able to leverage their networks or their networks are better able to match them with jobs closer to their field of specialization and skill set.
    Keywords: J15 ; J24 ; J61 ; ddc:330 ; education-occupation mismatch ; horizontal mismatch ; social networks ; hispanics ; citizenship
    Language: English
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  • 21
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: We study the relationship between age and influence in a closed group of 1,000 leading economists. We consider, as a measurement of influence, monthly RePEc rankings. We find that the rankings are not related to age but are related to experience. The optimal level of experience is 30 years from Ph.D. graduation. Additionally, we observe no robust difference in the effect of age and experience between Nobel laureates and leading non-Nobelists. Finally, we find that labor economists enjoy an especially steep improvement in the rankings before they reach the peak; however, the rankings also peak relatively early in their careers.
    Keywords: J24 ; ddc:330 ; aging ; citations ; influence ; Nobel ; research productivity
    Language: English
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  • 22
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: Modern women often face an uneasy choice: dedicating their time to reproductive household work, or joining the workforce and spending time away from home and household duties. Both choices are associated with benefits, as well as non-trivial costs, and necessarily involve some trade-offs, influencing the general feeling of happiness women experience given their decision. The trade-offs are especially pronounced in traditional developing countries, where both the pressure for women to stay at home and the need to earn additional income are strong, making the choice even more controversial. To understand the implications of this choice on the happiness of women in these types of countries we compare housewives and working women of the South Caucasus region. The rich data collected annually by the Caucasus Research Resource Center allows us to match working women with their housewife counterparts and to compare the level of happiness across the two groups – separately for each country as well as for Armenian and Azerbaijani minorities residing in Georgia. We find a significant negative happiness gap for working women in Armenia and in Azerbaijan, but not in Georgia. The absence of such a gap among the Armenian and Azerbaijani minorities of Georgia indicates that the gap is mostly a country- rather than an ethnicity-specific effect.
    Keywords: I31 ; J16 ; J21 ; J24 ; ddc:330 ; female employment ; reproductive housework ; life satisfaction and happiness ; propensity score matching
    Language: English
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  • 23
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: Paid parental leave schemes have been shown to increase women's employment rates but decrease their wages in case of extended leave durations. In view of these potential trade-offs, many countries are discussing the optimal design of parental leave policies. We analyze the impact of a major parental leave reform on mothers' long-term earnings. The 2007 German parental leave reform replaced a means-tested benefit with a more generous earnings-related benefit that is granted for a shorter period of time. Additionally, a "daddy quota" of two months was introduced. To identify the causal effect of this policy on long-run earnings of mothers, we use a difference-in-difference approach that compares labor market outcomes of mothers who gave birth just before and right after the reform and nets out seasonal effects by including the year before. Using administrative social security data, we confirm previous findings and show that the average duration of employment interruptions increased for high-income mothers. Nevertheless, we find a positive long-run effect on earnings for mothers in this group. This effect cannot be explained by changes in working hours, observed characteristics, changes in employer stability or fertility patterns. Descriptive evidence suggests that the stronger involvement of fathers, incentivized by the "daddy months", could have facilitated mothers' re-entry into the labor market and thereby increased earnings. For mothers with low prior-to-birth earnings, however, we do not find any beneficial labor market effects of this parental leave reform.
    Keywords: H31 ; J13 ; J22 ; J24 ; J31 ; ddc:330 ; parental leave ; wages ; labor supply
    Language: English
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  • 24
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This report looks at employer–provided training in Europe. We start with a brief outline of the economic theory of training. We then look at the recent facts, by combining data from two employer surveys, the European Investment Bank's Investment Survey (EIBIS) and Eurostat's Continuous Vocational Training Survey (CVTS). We review the recent empirical literature on the relationship between economic institutions and training and between training and productivity and consider whether financing constraints hamper the training provision by firms. The paper concludes by discussing policy implications.
    Keywords: J24 ; ddc:330 ; employer provided training ; Europe
    Language: English
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  • 25
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This study aims to fill the gap in our understanding about exposure to particulate matters with diameter less than 2.5 μm (PM2.5) and attributable risks and economic costs of mental disorders (MDs). We identify the relationship between PM2.5 and risk of hospital admissions (HAs) for MDs in Beijing and measure the attributable risk and economic cost. We apply a generalized additive model (GAM) with controls for time trend, meteorological conditions, holidays and day of the week. Stratified analyses are performed by age, gender and season. We further estimate health and economic burden of HAs for MDs attributable to PM2.5. A total of 17,252 HAs for MDs are collected. We show that PM2.5 accounts for substantial morbidity and economic burden of MDs. Specifically, a 10 μg/m3 daily increase in PM2.5 is associated with a 3.55% increase in the risk of HAs for MDs, and the effect is more pronounced for older males in colder weather. According to the WHO's air quality guidelines, 15.12 percent of HAs and 16.19 percent of related medical expenses for MDs are respectively attributable to PM2.5.
    Keywords: Q51 ; Q53 ; I24 ; I31 ; G11 ; G41 ; J24 ; ddc:330 ; attributable risk ; economic cost ; hospital admissions ; mental disorders ; PM2.5
    Language: English
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  • 26
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: While vocational education is meant to provide occupational-specific skills that are directly employable, their returns may be limited in fast-changing economies. Conversely, general education should provide learning skills, but these may have little value at low levels of education. This paper sheds light on this debate by exploiting a recent Spanish reform that postpones students' choice between these two educational pathways from age 14 to 16. To identify exogenous changes in its staggered implementation, we instrument this with the pre-reform across-province variation in the share of students in general education. Results indicate that, by shifting educational investment from vocational to general education after age 16, the reform improves occupational outcomes, and results in a significant rise in monthly wages. The effects are larger after the financial crisis, but are concentrated among middle to high-skilled individuals. In contrast, those who acquire only basic general education have worse long-term employment prospects than vocationally-trained individuals.
    Keywords: I26 ; I28 ; J24 ; ddc:330 ; general versus vocational education ; heterogeneous returns ; financial crisis
    Language: English
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  • 27
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    Munich: Center for Economic Studies and Ifo Institute (CESifo)
    Publication Date: 2020-03-25
    Description: The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning framework of Farber and Gibbons [1996] and Altonji and Pierret [2001]. What an instrumental variable identifies depends crucially on whether the instrument is hidden from, or observed by, the employers. If the instrument is hidden then it identifies the private returns to education, but if the instrument is observed by employers then it identifies the social returns to education. Interestingly, however, among experienced workers the instrument identifies the social returns to education, regardless of whether or not it is hidden. We operationalize this approach using local variation in compulsory schooling laws across multiple cohorts in Norway. Our preferred estimates indicate that the social return to an additional year of education is 5%, and the private internal rate of return, aggregating the returns over the life-cycle, is 7.2%. Thus, 70% of the private returns to education can be attributed to education raising productivity and 30% to education signaling workers' ability.
    Keywords: J24 ; J31 ; D83 ; ddc:330 ; signaling ; human capital ; employer learning ; instruments
    Language: English
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  • 28
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This paper presents a life-cycle model with human capital investment during working life through training and provides a novel empirical test of human capital theory. We exploit a sizable pension reform across adjacent cohorts in a regression discontinuity setting and find that an increase in working life increases training. We discuss and test further predictions regarding the relation between initial schooling, training, and the reform effect, showing that only individuals with a college degree increase human capital investment. Our results speak to a large class of human capital models as well as policies extending or shortening working life.
    Keywords: J24 ; J26 ; H21 ; ddc:330 ; human capital ; retirement policies ; RDD
    Language: English
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  • 29
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: Low employability among specific populations (e.g., religious/traditional women, the elderly, disabled workers, immigrants) has unfavorable consequences on the: unemployed individual, society, and the state economy. The latter include: poverty, a heavy toll on welfare budgets, diminished growth, and an increase in the "dependency ratio". We suggest a rather novel policy (borrowed from the field of Career Psychology) that could lead to successful integration into the labor market of low-employability populations: the design of tailor-made training programs that respond to work motives; coupled with a working environment that caters to special needs/restrictions; and complemented with counseling and monitoring. The suggested strategy was illustrated and investigated using a case study of Israeli ultra-religious women, who exhibit lower employment rates than other Israeli women. The motives behind their occupational choices were explored based on data collected by a field experiment. Factor Analysis was then employed to sort out the motives behind their occupational choices, and regression analysis was used to associate job satisfaction with work motivation. Policy implications were suggested based on the findings. There is already some evidence on the successful outcomes of the proposed strategy.
    Keywords: D13 ; D91 ; I38 ; J08 ; J24 ; Z12 ; ddc:330 ; low-employability ; ultra-Orthodox/religious (Haredi) ; Israel ; occupation ; motives ; job satisfaction ; old-age dependency-ratio
    Language: English
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  • 30
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: Background: Home visiting programs constitute an important policy to support vulnerable families with young children. They mainly aim to improve infant-parent relationships, however evidence on their effectiveness based on observational measures is relatively scarce. The present study provides the rare opportunity to directly examine the effects of a home visiting program, the Pro Kind, on mother-child interactions in a randomized controlled trial (RCT). Methods: A sample of 109 mother-child dyads was videotaped during a 3-min typical play situation at the participants' homes when the child was aged 25 months. We use a novel micro-coding system which allows us to examine how the intervention affected the dynamic feedback responses of both mothers and children in three key measures of behavior: orientation, positive contingency, and negative/lack of contingency. The study is registered in the German Clinical Trial Register (trial ID: DRKS00007554, date of registration: 11 June 2015). Results: The intervention significantly improved the interactions between girls and their mothers, both in strongly stable and partly unstable situations. Mixed impacts were detected for boys. Conclusions: These results have important implications for the analysis of mother-child interactions data and the design of home visiting programs.
    Keywords: I14 ; J13 ; J24 ; ddc:330 ; home visiting ; mother-child interactions ; randomized controlled trial
    Language: English
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  • 31
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: The growing gender gap in educational attainment between men and women has raised concerns that the skill development of boys may be more sensitive to family disadvantage than that of girls. Using the National Longitudinal Study of Adolescent to Adult Health (Add Health) data we find, as do previous studies, that boys are more likely to experience increased problems in school relative to girls, including suspensions and reduced educational aspirations, when they are in poor quality schools, less-educated neighborhoods, and father-absent households. Following these cohorts into young adulthood, however, we find no evidence that adolescent disadvantage has stronger negative impacts on long-run economic outcomes such as college graduation, employment, or income for men, relative to women. We do find that father absence is more strongly associated with men's marriage and childbearing and weak support for greater male vulnerability to disadvantage in rates of high school graduation. An investigation of adult outcomes for another recent cohort from the National Longitudinal Survey of Youth, 1997 produces a similar pattern of results. We conclude that focusing on gender differences in behavior in school may not lead to valid inferences about the effects of disadvantage on adult skills.
    Keywords: J24 ; J12 ; J16 ; ddc:330 ; gender ; education ; employment ; earnings ; family structure ; father absence ; school quality ; neighborhood effect
    Language: English
    Type: doc-type:workingPaper
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  • 32
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This paper provides a rationale for the revival of protectionism, based on the rise of the educated class. In a trade model with heterogeneous workers and entrepreneurs, globalization generates aggregate gains but has distributional effects, which can be attenuated through taxation. By playing a two-stage political game, citizens decide on trade openness and the extent of redistribution. In this setting, trade liberalization is politically viable as long as the losers from trade are compensated through the redistributive mechanism. When skilled workers account for a large share of the population, however, there may be limited political support for redistribution, and those who are left behind by globalization – namely unskilled workers and importing-sector entrepreneurs – can form a coalition to impose protectionist measures. We then build a dynamic version of the model, where human capital accumulation is driven by public education. Our analysis suggests that globalization – by favoring the ascent of the educated class and thus eroding the political support for redistribution – may ultimately breed its own decline.
    Keywords: D72 ; F68 ; I24 ; J24 ; O40 ; ddc:330 ; trade ; redistribution ; political economy ; human capital accumulation
    Language: English
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  • 33
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: The U.S. economy has experienced a significant drop in the fraction of the population employed in middle wage, "routine task-intensive" occupations. Applying machine learning techniques, we identify characteristics of those who used to be employed in such occupations and show they are now less likely to work in routine occupations. Instead, they are either non-participants in the labor force or working at occupations that tend to occupy the bottom of the wage distribution. We then develop a quantitative, heterogeneous agent, general equilibrium model of labor force participation, occupational choice, and capital investment. This allows us to quantify the role of advancement in automation technology in accounting for these labor market changes. We then use this framework as a laboratory to evaluate various public policies aimed at addressing the disappearance of routine employment and its consequent impacts on inequality.
    Keywords: E22 ; E24 ; J23 ; J24 ; ddc:330 ; polarization ; automation ; routine employment ; labor force participation ; universal basic income ; unemployment insurance ; retraining
    Language: English
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  • 34
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: This article reviews the recent literature in economics on small-scale entrepreneurship ("microentrepreneurship") in low-income countries. Major themes in the literature include the determinants and consequences of joining the formal sector; the impacts of access to credit and other financial services; the impacts of business training; barriers to hiring; and the distinction between self-employment by necessity and self-employment as a calling. The article devotes special attention to unique issues that arise with female entrepreneurship.
    Keywords: L26 ; J16 ; J24 ; ddc:330 ; small businesses ; female entrepreneurship ; self-employment ; informal sector
    Language: English
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  • 35
    facet.materialart.
    Unknown
    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning framework of Farber and Gibbons [1996] and Altonji and Pierret [2001]. What an instrumental variable identifies depends crucially on whether the instrument is hidden from, or observed by, the employers. If the instrument is hidden then it identifies the private returns to education, but if the instrument is observed by employers then it identifies the social returns to education. Interestingly, however, among experienced workers the instrument identifies the social returns to education, regardless of whether or not it is hidden. We operationalize this approach using local variation in compulsory schooling laws across multiple cohorts in Norway. Our preferred estimates indicate that the social return to an additional year of education is 5%, and the private internal rate of return, aggregating the returns over the life-cycle, is 7.2%. Thus, 70% of the private returns to education can be attributed to education raising productivity and 30% to education signaling workers' ability.
    Keywords: J24 ; J31 ; D83 ; ddc:330 ; signaling ; human capital ; employer learning ; instruments
    Language: English
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  • 36
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2020-03-25
    Description: I study the long-term effects of landing a first job at a large firm versus a small one using Spanish social security data. Size could be a relevant employer attribute for inexperienced workers since large firms are associated with greater training, higher wages, and enhanced productivity. The key empirical challenge is selection into first jobs – for instance, more able people may land jobs at large firms. I address this challenge developing an instrumental-variables approach that, while keeping business-cycle conditions fixed, leverages variation in the composition of labor demand that labor-market entrants face. I find that initially matching with a larger firm substantially improves long-term outcomes such as lifetime income, and that these benefits persist through subsequent jobs. Additional results point to mechanisms related to search frictions and better skill-development at large firms. Together, these findings shed light on how heterogeneous firms persistently impact young workers' trajectories.
    Keywords: E24 ; J23 ; J24 ; J31 ; J62 ; ddc:330 ; first job ; employer size ; firm heterogeneity ; young workers ; lifetime income ; on-the-job skills
    Language: English
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  • 37
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    Pisa: Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
    Publication Date: 2019-09-06
    Description: A growing body of research has contributed to understanding the labor market and political effects of globalization. This paper explores an overlooked aspect of trade-induced adjustments in the labor market: the institutional aspect. We take advantage of the two-tier collective bargaining structure of the Italian labor market, whereby the first tier entails setting minimum wages at the contract level. Using an instrumental variable strategy and exploiting variations in contract-level exposure to trade, we find for the 1995-2003 period that on average, the surge in imports decreased contractual minimum wages by 1.5%. This impact increased with the increase in the share of unskilled workers employed in the contract. This negative institutional effect contrasts with a nonsignificant effect of trade on total wages, with the latter becoming positive and large only for highly skilled workers.
    Keywords: J50 ; F16 ; J31 ; J24 ; ddc:330 ; Bargained minimum wages ; import competition ; labor market institutions ; skills
    Language: English
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  • 38
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    Pisa: Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
    Publication Date: 2019-09-06
    Description: This paper explores the relation between the digitalization and of labour processes, the level of routineness of tasks and changes in employment. The levels of digitalization and routineness of occupations in 796 5-digit ISCO professional groups are measured using data from a unique Italian profession-level survey on skill, task and work contents - the INAPP-ISTAT Survey on Italian Occupations (ICP), an O*NET-type dataset. We develop three novel digitalization indices: a digital use index measuring the use of digital devices and technologies in the workplace, a digital skills index assessing the familiarity and skill in using digital technologies, and a digital tasks index capturing the frequency and importance of selected digital tasks. Using the same data-source the Autor and Dorn routine task intensity index is also computed. This allows us to explore, based on robust indicators on routinization and digitalization, the existence and the strength of a 'routinized biased technological change' specifically associated to the use of digital technologies. Results show the multifaceted nature of both digitalization and routineness processes, both characterized by strong sectoral specificities and by being strongly associated with the skill content of labour professions. Professions characterized by higher digital skills are those showing the best employment performances (although this holds only in manufacturing sector). Both the descriptive and econometric evidences show a negative employment dynamics among professions combining high level of digitalization and routineness.
    Keywords: O33 ; J23 ; J24 ; ddc:330 ; Digitalization ; employment ; task ; skills
    Language: English
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  • 39
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2019-09-06
    Description: Many children worldwide are left behind by parents who are migrating for work. While previous literature has studied the effect of parental migration on children's educational outcomes and cognitive achievements, this study focuses on how parental migration affects children's non-cognitive development. We use longitudinal data of children in rural China and adopt labor market conditions in destination provinces as instrumental variables for parental endogenous migration choice. We find that parental migration has a significant negative effect on children's non-cognitive development. Differentiating inter- and intra-provincial migrations suggests that the negative effect of parental migration is mainly driven by inter-provincial migrations. We test four different mechanisms of how parental migration affects child development including parental financial inputs, parental time inputs, household bargaining, and children's own time input. Our results provide insights into the relative importance of different mechanisms in determining the effect of parental migration on children's non-cognitive skill formation.
    Keywords: J12 ; J13 ; J24 ; J61 ; R23 ; ddc:330 ; Left-behind Children ; Parental Migration ; Parental Input ; Non-cognitive Development ; China
    Language: English
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  • 40
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    Essen: RWI - Leibniz-Institut für Wirtschaftsforschung
    Publication Date: 2019-09-13
    Description: We estimate the effect of language training on subsequent employment and wages of immigrants under essential heterogeneity. The identifying variation is based on regional differences in language training availability that we use to instrument endogenous participation. Estimating marginal treatment effects along the distribution of observables and unobservables that drive individual participation decisions, we find that immigrants with higher gains are more likely to select into language training than immigrants with lower gains. We document up to 15% higher employment rates and 13% wage gains for immigrants with a high desire to participate but the positive returns vanish with increasing resistance to treatment. This pattern of selection on gains correlates with unobserved ability and motivation, promoting investments in education and job-specific skills that yield higher returns when complemented by language capital in the host country.
    Description: Die Studie untersucht den Effekt von Sprachkursen auf Beschäftigung und Löhne von Immigranten. Zur Identifikation wird exogene Variation der regionalen Verfügbarkeit von Sprachkursen genutzt. Anhand dieses Instruments werden marginale Treatment-Effekte (MTE) entlang der Verteilung beobachtbarer und unbeobachtbarer Variablen geschätzt. Die Ergebnisse zeigen, dass Immigranten mit höherem Arbeitsmarkterfolg durch Sprachkursteilnahme sich wahrscheinlicher in Sprachkurse selektieren als Immigranten mit geringeren Erträgen. Immigranten mit hoher Teilnahmepräferenz weisen eine um 15% höhere Beschäftigungsquote und bis zu 13% höhere Löhne auf, allerdings verschwinden die positiven Effekte mit abnehmender Teilnahmewahrscheinlichkeit. Die Selektion nach Arbeitsmarkterfolg korreliert mit unbeobachtbaren Eigenschaften wie Motivation und Talent, die mit höheren Investitionen in Bildung und berufsspezifischen Qualifikationen einhergehen und zu einem höheren Arbeitsmarkterfolg führen, wenn sie durch Sprachkenntnisse des Gastlandes komplementiert werden.
    Keywords: F22 ; J24 ; J61 ; J68 ; O15 ; ddc:330 ; language training ; heterogeneous returns ; marginal treatment effects ; continuous instrument
    Language: English
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  • 41
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    Göttingen: University of Göttingen, Center for European, Governance and Economic Development Research (cege)
    Publication Date: 2019-09-17
    Description: This paper investigates several channels through which automation affects an emerging economy. Building on a Ricardian model of trade with sectoral linkages and a two-stage production technology, in which robots replace labor in certain tasks, it is shown that domestic and foreign automation have differential effects on labor markets. Based on this model, the impact of automation on local labor markets in Brazil are estimated using a shift-share approach. Local labor market exposures to industry-level stocks of robots are derived from their initial industry-employment composition. Foreign automation is found to decrease manufacturing employment through the channel of final goods exports, while it increases employment in the mining sector through the channel of input exports. This may stimulate what has been called "premature deindustrialization" in emerging economies. To account for possible endogeneity in adopting robots domestically, robot uptake in other emerging economies is used as an instrumental variable. Domestic automation is found to directly decrease the ratio of unskilled industry workers and increase the ratio of skilled workers. Also, the wage gap between the two groups widens as a consequence of domestic automation, reinforcing income inequality.
    Keywords: J23 ; J24 ; F16 ; O33 ; ddc:330 ; automation ; trade ; deindustrialization ; employment ; wages
    Language: English
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  • 42
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    Jena: Friedrich Schiller University Jena
    Publication Date: 2019-10-18
    Description: Countries compete for young talents to alleviate skilled-labor shortage. International students, who stay after graduation, allow host countries to overcome those challenges. This study investigates the factors associated with international students' intention to stay or to go after graduation. In contrast to the existing literature, this analysis employs survey data collected at the beginning of the studies. This assures that the analysis is not distorted by attrition and provides policymakers with more time for interventions. At the same time, it requires to deal with uncertainty as the actual migration decision will only be due in a few years. This study introduces a set of uncertainty models to the migration context to account for this. It finds that the results are largely robust across the different models: lower economic growth in the home country, a stay in the host country before the studies and being enrolled in a Bachelor program instead of a Master program are significantly associated with the intention to stay with certainty. Furthermore, Master students are found to be more uncertain than Bachelor students.
    Keywords: F22 ; J24 ; I23 ; ddc:330 ; Stay intention ; International students ; Uncertainty ; Labor shortage
    Language: English
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  • 43
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    Nürnberg: Institut für Arbeitsmarkt- und Berufsforschung (IAB)
    Publication Date: 2019-10-24
    Description: In Germany, the labour force is ageing rapidly. At the same time, age heterogeneity within companies is rising. The literature on diversity argues that heterogeneity can have a positive as well as a detrimental effect on team outputs. Our paper sheds light on the impact of age diversity on the likelihood of a company to create product or process innovations. Based on our analysis of the Linked Employer-Employee-Data from the Institute for Employment Research (IAB) over the 2009-2013 period, we focus on different indicators of age diversity within a company's workforce (variety, separation and disparity). We find that a rise in the average age of a company's workforce has a negative impact on innovation, but age diversity measured by the standard deviation of age or the average age gap increases the probability of a company to create innovations. In addition, the uniformity of the age distribution does not affect innovativeness. Different results for age and tenure diversity suggest a higher importance of generalised human capital for creativity processes compared to company-specific knowledge gained during employment within a company.
    Description: Die Erwerbsbevölkerung in Deutschland altert rasant, gleichzeitig nimmt aber auch die Altersheterogenität in den Belegschaften zu. In der Literatur finden sich sowohl Hinweise auf einen positiven wie auch einen negativen Einfluss der Altersheterogenität auf den Teamerfolg. Die vorliegende Studie untersucht, inwieweit die Altersheterogenität die Wahrscheinlichkeit eines Betriebs beeinflusst, Produkt- oder Verfahrensinnovationen hervorzubringen. Auf Basis von Linked Employer-Employee-Daten des Instituts für Arbeitsmarkt- und Berufsforschung (IAB) der Jahre 2009 bis 2013 werden verschiedene Indikatoren zur Messung der Altersheterogenität in der Belegschaft verwendet (Varietät, Separation, Disparität). Im Ergebnis findet sich ein negativer Effekt des Durchschnittsalters auf die Innovationsfähigkeit, allerdings erhöhen die Standardabweichung des Alters und die durchschnittliche Alterslücke die Wahrscheinlichkeit eines Betriebs, Innovationen hervorzubringen. Eine Gleichverteilung der Altersstruktur zeigt hingegen keinen Zusammenhang zur betrieblichen Innovationsfähigkeit. Die unterschiedlichen Ergebnisse zur Heterogenität des Alters und der Betriebszugehörigkeitsdauer weisen zudem auf eine höhere Bedeutung des allgemeinen Humankapitals für kreative Prozesse hin - im Vergleich zum Humankapital, welches betriebsspezifisch erworben wird.
    Keywords: J14 ; J24 ; M14 ; ddc:330 ; Age Diversity ; Company Innovativeness ; Linked Employee-Employer-Data
    Language: English
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  • 44
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    Nürnberg: Institut für Arbeitsmarkt- und Berufsforschung (IAB)
    Publication Date: 2019-10-24
    Description: Immigration policy in most high-income countries is designed to promote qualified migration while maintaining high requirements on characteristics such as education and language skills. We rely on a standard self-selection model with heterogeneous migration costs to discuss the effect of access to language learning services in the country of origin on the skill composition of immigrants in Germany. Using individual-level survey data on immigrants from different cohorts over the period 2000 - 2014, combined with unique data on the presence of Goethe Institutes - a German association promoting German language and culture worldwide - in origin countries, the results of our empirical analysis show that the acquisition of the German language is fostered by the availability of language courses abroad. Moreover, we find that language services abroad induce a positive (self-)selection of migrants along several dimensions, such as education, experience, and the probability of holding a job offer at arrival. These characteristics are in turn highly relevant for long- term integration in Germany. To disentangle transmission channels, we perform a causal mediation analysis. We find that 25 % of the total effect of language services abroad on language skills at immigration trace back directly to migrants' participation in language courses, revealing important spillover effects.
    Description: Die Einwanderungspolitik in den meisten einkommensstarken Ländern zielt darauf ab, qualifizierte Migration bei gleichzeitiger Beibehaltung hoher Anforderungen an Bildung und Sprachkenntnisse zu fördern. Wir verwenden ein etabliertes theoretisches Modell zur Selbstselektion von Migrantinnen und Migranten mit heterogenen Migrationskosten, um die Auswirkungen des Zugangs zu Sprachlernangeboten im Herkunftsland auf verschiedene Qualifikationen von Migrantinnen und Migranten in Deutschland zu untersuchen. Ausgehend von individuellen Befragungsdaten von Zugewanderten aus Kohorten zwischen 2000 und 2014, kombiniert mit neu vorliegenden Daten über die Präsenz von Goethe Instituten in den Herkunftsländern, zeigen unsere Ergebnisse, dass der Erwerb der deutschen Sprache durch die Verfügbarkeit von Sprachkursen im Ausland gefördert wird. Darüber hinaus stellen wir fest, dass Sprachlernangebote im Ausland eine positive (Selbst-)Selektion von Migrantinnen und Migranten entlang mehrerer Dimensionen bewirken, wie z.B. Bildung, Erwerbserfahrung und die Wahrscheinlichkeit eines Stellenangebots bei Einreise. Diese Eigenschaften sind wiederum für die langfristige Integration in Deutschland von großer Bedeutung. Zur Identifikation von Wirkungskanälen, führen wir eine kausale Mediationsanalyse durch. Es zeigt sich, dass 25 % des gesamten Effekts durch angebotene Sprachkurse im Ausland auf die Sprachkenntnisse zum Zeitpunkt der Einwanderung direkt auf die Teilnahme von Migrantinnen und Migranten an Sprachkursen zurückzuführen sind. Dies deutet auf substantielle Spillover-Effekte hin.
    Keywords: F22 ; J18 ; J24 ; J61 ; Z13 ; ddc:330 ; International Migration ; Public Policy ; Human Capital - Skills ; Immigrant Workers
    Language: English
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  • 45
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    Amsterdam and Rotterdam: Tinbergen Institute
    Publication Date: 2019-10-31
    Description: This paper explores how a conditional cash transfer program influences students’ schooling decisions when program payments stop in the middle of the school career. To that end, I examine Mexico’s Progresa, which covered students only until the end of middle school (at age 15) in its early years. The experimental setup permits to study the program’s impact on the probability to continue with high school after middle school. Despite initial randomization, the program itself has likely rendered the respective samples of middle school graduates in the treatment and the control group incomparable. To account for this, I employ a newly developed semiparametric technique that uses a combination of machine learning methods in conjunction with doubly-robust estimation. I find that exposure to Progresa during middle school reduced the probability to transfer to high school by 10 to 14 percentage points. Possible explanations for this effect include parents’ loss aversion, motivation crowding, anchoring, and classroom peer effects.
    Keywords: I22 ; I25 ; O15 ; J24 ; D04 ; D91 ; C52 ; ddc:330 ; education ; conditional cash transfer ; Progresa ; machine learning ; doubly-robust estimation ; loss aversion ; motivation crowding ; anchoring ; classroom peer effects ; Mexico
    Language: English
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  • 46
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    Kiel, Hamburg: ZBW – Leibniz Information Centre for Economics
    Publication Date: 2019-11-05
    Description: In most multi-cultural Anglo-Saxon countries, children of Asian immigrants have higher academic achievement than children of native-born parents. Yet, little is known about their relative non-cognitive performance. This study is the first to compare the non-cognitive skills of children of Asian immigrants and children of native-born Australian parents and seek to understand the evolution of non-cognitive skills. We find large differences in non-cognitive skill development between children of Asian immigrants and children of parents from other ethnicity groups. Furthermore, the nativity gaps in non-cognitive skills vary significantly by informants of non-cognitive skills, types of non-cognitive skills and children’s ages. According to teacher ratings, children of Asian immigrants are found to excel in almost all non-cognitive attributes, particularly after school entry ages. By contrast, Asian immigrant parents rated their children lower in some selected non-cognitive attributes and at early ages. Adopting a cumulative value-added regression model and an Oaxaca-Blinder decomposition method, this paper shows differences in initial child non-cognitive abilities, parenting styles and children’s time allocations are the most important factors explaining the ethnic non-cognitive skill gap. Moreover, ethnic differences in parenting styles and children’s time allocations both contribute to reducing the ethnic gap in non-cognitive skills. By contrast, differences in other child or household characteristics explain very little of the ethnic non-cognitive skill gap.
    Keywords: J13 ; J15 ; J22 ; J24 ; ddc:330 ; Migration ; Non-cognitive skills ; Time Use Diary ; Second-generation Immigrants ; Australia
    Language: English
    Type: doc-type:preprint
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    Warsaw: De Gruyter Open
    Publication Date: 2019-11-07
    Description: In light of globalization and modern business, companies are typically exposed to challenges caused by unpredictable and complex competitive environments. The business environment, with global trends and stringent competition in the world market, now faces significant changes that companies should introduce into their current business operations. Among them, the human resource management of knowledge employees has become extremely important. The main aim of this article is to establish the impact of components of knowledge management on work engagement of employees in Slovenian companies. In the empirical part of the research, a sample of 112 Slovenian companies was obtained. Senior managers of companies and their employees were surveyed, using the questionnaire developed based on existing measurement scales. The results will help us to better understand the importance of knowledge management in Slovenian companies and its importance as a business strategy that must be fully integrated within all of the employees' related processes of the company.
    Keywords: J24 ; C38 ; ddc:330 ; knowledge management ; knowledge management components ; employees
    Language: English
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  • 48
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-11-14
    Description: Economists have long believed that firms will not pay to develop occupational skills that workers could use in other, often competing, firms. Researchers now recognize that firms that invest in apprenticeship training generally reap good returns. Evidence indicates that financial returns to firms vary. Some recoup their investment within the apprenticeship period, while others see their investment pay off only after accounting for reduced turnover, recruitment, and initial training costs. Generally, the first year of apprenticeships involves significant costs, but subsequently, the apprentice's contributions exceed his/her wages and supervisory costs. Most participating firms view apprenticeships as offering certainty that all workers have the same high level of expertise and ensuring an adequate supply of well-trained workers to cover sudden increases in demand and to fill leadership positions.
    Keywords: J24 ; J44 ; I21 ; ddc:330 ; training ; skills ; apprenticeship
    Language: English
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  • 49
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-11-14
    Description: Conventional wisdom and prevailing economic theory hold that the new owners of a privatized firm will cut jobs and wages. But this ignores the possibility that new owners will expand the firm's scale, with potentially positive effects on employment, wages, and productivity. Evidence generally shows these forces to be offsetting, usually resulting in small employment and earnings effects and sometimes in large, positive effects on productivity and scale. Foreign ownership usually has positive effects, and the effects of domestic privatization tend to be larger in countries with a more competitive business environment.
    Keywords: E24 ; J21 ; J24 ; ddc:330 ; privatization ; employment ; wages ; earnings ; productivity ; output
    Language: English
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  • 50
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2019-11-16
    Description: The literature on workplace learning in secondary education has mainly focussed on vocational education programmes. In this study, we examine the impact of internship experience in secondary education on a student’s schooling and early labour market outcomes, by analysing unique, longitudinal data from Belgium. To control for unobserved heterogeneity, we model sequential outcomes by means of a dynamic discrete choice model. In line with the literature on vocational education programmes, we find that internship experience has a positive effect on labour market outcomes that diminishes over time, although within the time window of our study, we find no evidence for a null or negative effect over time.
    Keywords: I21 ; I26 ; J21 ; J24 ; ddc:330 ; internship ; transitions in youth ; education ; labour
    Language: English
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  • 51
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    Kiel, Hamburg: ZBW - Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2019-10-24
    Keywords: J24 ; ddc:330
    Language: English
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  • 52
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    Amsterdam and Rotterdam: Tinbergen Institute
    Publication Date: 2019-10-31
    Description: This paper develops new measures of the task content of occupations that are based on the International Standard Classification of Occupations 2008 (ISCO-08). Using a detailed set of 3,264 occupation-specific tasks, we construct five measures of non-routine analytic, non-routine interactive, routine cognitive, routine manual and non-routine manual tasks for 427 four-digit occupations. To generate these measures, first we assign each of the 3,264 tasks to one or more of the five task categories. The decision to classify tasks as routine or non-routine, and as cognitive or manual, depends on whether the tasks can be replaced by computer-controlled technology and whether the performance of the tasks requires cognitive or manual skills. We judge the automation potential of tasks on a case-by-case basis and classify tasks to one or more of the five task categories. Because the classification of 3,264 tasks can be prone to errors, we devote substantial attention to the possibility of misclassifying tasks. We discuss three particular types of task misclassifications and provide examples of tasks that could be potentially misclassified. In line with the previous literature, we find that non-routine analytic and interactive tasks are most prevalent in the work of Managers and Professionals, routine cognitive tasks are mainly concentrated in the work of Clerical Support Workers, and routine and non-routine manual tasks are most common in the work of Plant and Machine Operators and Assemblers and Elementary Occupations, respectively. We compare the newly developed task measures with three previous studies (Acemoglu and Autor, 2011; Dengler, Matthes and Paulus, 2014; Frey and Osborne, 2017) and demonstrate that our measures are moderately to strongly positively correlated with the previous papers’ indexes. Based on our task content measures, we provide an end of the envelop estimation of the number of occupations that might be at risk of automation. We find that approximately 16 percent of the 427 ISCO-08 occupations fall into the so-called high risk of automation category – they contain 70 percent or more routine tasks. The 16 percent of automatable occupations correspond roughly to 11 percent of total employment in the Netherlands.
    Keywords: O33 ; J24 ; J62 ; ddc:330 ; Technological change ; Computerization ; Occupations ; Routine and non-routine tasks ; International Standard Classification of Occupations 2008 (ISCO-08)
    Language: English
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  • 53
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-11-28
    Description: Holzer and Baum's recent book, 'Making College Work: Pathways to Success for Disadvantaged Students,' provides an excellent up-to-date review of higher education. My review first summarizes its key themes: 1) who gains from college and why? 2) mismatch and the need for more structure; 3) problems with remediation; 4) financial barriers and 5) the promise of comprehensive support. I then critique the book's proposed solutions using some of my own qualitative and quantitative data. Some recommendations are worth considering, while others are too expensive or unlikely to make a meaningful difference without addressing the underlying lack of preparedness and motivation of college students. I argue that making mandatory some existing services, such as application assistance and advice, proactive tutoring and advising, and greater career transition support, has the most immediate potential.
    Keywords: I2 ; J24 ; ddc:330 ; college student achievement ; returns to college ; higher education policy ; signaling
    Language: English
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  • 54
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2019-12-03
    Description: I use data from the World Input-Output Database and show that trade in information technologies (IT) has a significant contribution to the growth in foreign intermediate goods in 2001-2014 period. China has become one of the major foreign suppliers of IT and has strongly contributed to the rise in trade in IT. The growth in IT imports from China is associated with lower IT prices in sample European countries. The fall in IT prices has increased the demand for high wage occupations and reduced the demand for low wage occupations. From 20 to 95 percent of the variation in the demand for occupations stemming from the fall in IT prices can be attributed to the trade with China.
    Keywords: F16 ; J23 ; J24 ; O33 ; L63 ; ddc:330 ; Trade ; Information Technologies ; China ; Demand for Occupations
    Language: English
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  • 55
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    Hamburg: Hamburgisches WeltWirtschaftsInstitut (HWWI)
    Publication Date: 2019-12-09
    Description: This study provides the first comprehensive analysis of sanction effects on post-welfare employment quality in Europe using the outcome variables daily wage, yearly income, and covering job stability with the durations of three employment states: employed, unemployed, and supplementary benefit receipt. Applying PSM, we estimate the treatment effects (ATT) of UB-II-sanctions in Germany based on a rich administrative data set. Novelties of this study are the analysis of postwelfare sanction effects also for employed welfare recipients ("Aufstocker") and for indirectly affected employable household members. Our analyses reveal highly significant and strongly negative effects of benefit sanctions on the quality of post-welfare employment in the short and long run. In terms of income and employment stability we find a catch-up process which is by far not strong enough to compensate the loss within two years. For employed welfare recipients the negative effects on income and job stability even exceed the effects for unemployed. Particularly striking are the remarkably strong and highly significant negative effects on indirectly affected unemployed household members.
    Keywords: I38 ; J24 ; J48 ; J64 ; J65 ; J68 ; ddc:330 ; benefit sanctions ; sanction effects ; post-unemployment employment quality ; employment stability ; long-term effects ; catch-up process ; unemployment benefit policy ; welfare policy
    Language: English
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  • 56
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    Munich: Center for Economic Studies and Ifo Institute (CESifo)
    Publication Date: 2019-12-04
    Description: We study the effects of a voluntary skill certification scheme in an online freelancing labour market. We show that obtaining skill certificates increases freelancers’ earnings. This effect is not driven by increased freelancer productivity but by decreased employer uncertainty. The increase in freelancer earnings is mostly realised through an increase in the value of the projects won rather than an increase in the number of projects won. Moreover, we find evidence for negative selection to completing skill certificates, which suggests that the freelancers who complete more skill certificates are in a more disadvantaged position in the labour market.
    Keywords: J21 ; J23 ; J24 ; J31 ; I20 ; ddc:330 ; signaling ; human capital ; skill validation ; skill certificates ; micro-credentials ; online freelancing ; platforms ; gig economy ; computer-based assessment
    Language: English
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  • 57
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-12-04
    Description: In a previous paper, we have shown that academic rank is largely unrelated to tutorial teaching effectiveness. In this paper, we further explore the effectiveness of the lowest-ranked instructors: students. We confirm that students are almost as effective as senior instructors, and we produce results informative on the effects of expanding the use of student instructors. We conclude that hiring moderately more student instructors would not harm students, but exclusively using them will likely negatively affect student outcomes. Given how inexpensive student instructors are, however, such a policy might still be worth it.
    Keywords: I21 ; I24 ; J24 ; ddc:330 ; student instructors ; university ; teacher performance
    Language: English
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  • 58
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-12-04
    Description: Job training is one of the most important aspects of skill formation and human capital accumulation. In this study we use longitudinal Canadian linked employer-employee data to examine whether white/visible minority immigrants and Canadian-borns experience different opportunities in two well-defined measures of firm-sponsored training: on-the-job training and classroom training. While we find no differences in on-the-job training between different groups, our results suggest that visible minority immigrants are significantly less likely to receive classroom training, and receive fewer and shorter classroom training courses, an experience that is not shared by white immigrants. For male visible minority immigrants, these gaps are entirely driven by their differential sorting into workplaces with less training opportunities. For their female counterparts however, they are mainly driven by differences that emerge within workplaces. We find no evidence that years spent in Canada or education level can appreciably reduce these gaps. Accounting for potential differences in career paths and hierarchical level also fails to explain these differences. We find however that these gaps are only experienced by visible minority immigrants who work in the for-profit sector, with those in the non-profit sector experiencing positive or no gaps in training. Finally, we show that other poor labor market outcomes of visible minority immigrants, including their wages and promotion opportunities, stem in part from these training gaps.
    Keywords: J24 ; L22 ; M53 ; ddc:330 ; immigrants ; wages ; firm-sponsored training ; linked employer-employee data
    Language: English
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  • 59
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-12-04
    Description: Entrepreneurship in most advanced economies is in decline. This comes as a surprise: many scholars have expected an upsurge in entrepreneurship. What are the reasons for the decline? In this paper I first document the extent of the decline in terms of entrepreneurial entry rates; the share of young and small firms; and in terms of labor market mobility and in innovativeness. I then critically discuss the explanations that have been offered in the literature, which variously ascribes the decline to either the slowing of population growth, and/or growing market concentration, zombie-firm congestion, slower diffusion of knowledge, and burdensome business regulations. While having merit, these explanations tend to take a supply-side view and moreover fail to explain why the decline in entrepreneurship is largely confined to economies with high levels of economic complexity. I argue that we need to consider the potential of negative scale effects and evolutionary pressures from rising complexity, as well as long-run changes in aggregate demand and energy costs. Whether the decline in entrepreneurship and the ossification of the economy is undesirable, is a point for debate, calling for more research and more attention to entrepreneurship in growth theories.
    Keywords: O47 ; O33 ; J24 ; E21 ; E25 ; ddc:330 ; development ; start-ups ; entrepreneurship ; economic complexity ; growth theory
    Language: English
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  • 60
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2019-12-04
    Description: We study the importance of linguistic diversity in the workplace for workplace productivity. While cultural diversity might improve productivity through new ideas and innovation, linguistic diversity might increase communication costs and thereby reduce productivity. We apply a new measure of languages' linguistic proximity to Norwegian linked employer-employee Manufacturing data from 2003-12, and find that higher workforce linguistic diversity decreases productivity. We find a negative effect also when we take into account the impact of cultural diversity. As expected proficiency in Norwegian of foreign workers improves since their time of arrival in Norway, the detrimental impact disappears.
    Keywords: J15 ; D24 ; J24 ; ddc:330 ; productivity ; diversity ; language diversity ; GMM