Academic Literature

This category contains 452 posts

Vocational vs General Education in Apprenticeship – The life-cycle trade-off

This paper discusses the role of vocational education, and in particular apprenticeship education, in preparing students for the labor market, with a particular focus on a life-cycle perspective in changing economies. The basic idea is that vocational education may facilitate entry into the labor market but hurt em­ployment opportunities later in life because of limited … Continue reading

VET and School-to-Work Transition – Vocationally educated upper-secondary level school-leavers are better prepared to enter the labour market research finds

This article describes and analyses the school-to-work transitions of a 2006 cohort of Dutch school-leavers with upper-secondary general and vocational qualifications (ISCED Level 3). By adopting a longitudinal perspective through the use of SA, we have been able to integrate recent ideas about school-to-work transitions into an analysis of the effect of vocational education on … Continue reading

Gap Years – Delaying college enrollment affects earnings trajectories

In the literature on college enrollment and college choice, a common assumption is that college-intending students begin postsecondary education in the fall after their high school graduation. Yet according to the National Postsecondary Student Aid Study, 37 percent of undergraduate students in the 1992–93 academic year waited a year or more after high school graduation … Continue reading

Immigration and Redistribution in Europe – A lower support for redistribution when the share of immigrants is higher

In almost every European country, the share of immigrants has increased substantially during the past decades. This has sparked a public debate about economic benefits of immigration and perceived threats to social cohesion. In new IZA discussion paper, Alberto Alesina, Elie Murard and Hillel Rapoport provide empirical evidence on attitudinal shifts against redistribution among European-born … Continue reading

Gig-Economy and Entrepreneurial Activity – It reduces lower quality entrepreneurial activity research finds

We examine how the entry of gig-economy platforms influences local entrepreneurial activity. On one hand, such platforms may reduce entrepreneurial activity by offering stable employment for the un- and under-employed. On the other hand, such platforms may enable entrepreneurial activity by offering work flexibility that allows the entrepreneur to re-deploy resources strategically in order to … Continue reading

Minimum Wage In Seattle – Increases labor costs, mildly reduces demand for low-wage jobs, but doesn’t increase prices

In this paper we revisit the question of how businesses respond to the minimum wage using evidence from a large minimum wage hike in Seattle. In 2014 the City of Seattle passed the Minimum Wage Ordinance, which raised the minimum wage to $15 over several years. We examine the minimum wage effect during the first … Continue reading

Autonomous Vehicle in US – How to cope with their effects on workers

How will the introduction and diffusion of autonomous vehicles (AVs) affect U.S. workers? This highly fraught question promises soon to loom large in hometowns and policy realms across the nation. Given Americans’ current reliance on cars and trucks for most of our transportation, the transition to self-driving vehicles will change many lives and livelihoods, likely … Continue reading

Minimum Wages in US – Three conclusions on the impacts

Minimum wages have been studied so extensively that it is rare to find a fresh angle that piques labor economists’ interest. Despite a mountain of literature, advances in empirical methods, and the availability of new data, definitive studies are scarcer than policymakers would hope to find. The empirical challenges researchers of the minimum wage face … Continue reading

Stereotypes and Biases – Do teachers change when they become aware of them ?

Stereotypes are over-generalized representations of characteristics of certain groups. They allow for easier and efficient processing of information, but they may cause biased judgment or even discrimination against particular groups. In addition, discrimination may lead to self-fulfilling prophecies by influencing the behavior of discriminated groups in the direction of the stereotypes. If individuals become aware … Continue reading

Working at Home – Telework increases stress study finds

Homeworking comes with pro and cons. While some describe as an ideal that combines family life and work, others depict it as chaotic and stressful – just imagine your cat sitting on the laptop, your baby crying on the ground, and your dog biting the shoes. According to a recent IZA discussion paper by Younghwan Song … Continue reading

Unemployment and Wage Growth in US – No sharp pickup in wage growth foreseen by FRBSF

The unemployment rate ended 2018 at just under 4%, substantially lower than most estimates of the natural rate. Could such an ostensibly tight labor market lead to a sharp pickup in wage growth from its recent moderate pace, such that the relationship between wage growth and unemployment is not always linear? Investigations using state-level data … Continue reading

Vocational vs General Education – Each country should aim to find the right balance

Vocational skills are job-specific skills that prepare for work in specific occupations. By contrast, the usage of general skills transcends specific occupations. In dynamically changing economies, this difference implies a basic trade-off between vocational and general education programs for labor-market experiences over the life-cycle. Vocational education programs have the advantage of helping young people master … Continue reading

Employment-to-Population Ratio in US – Why the decline ?

For several decades now, the employment rate among prime-age U.S adults has been falling. Less-educated males have experienced the largest drop in employment, but the troubling trends in participation are not limited to this group. Employment rates among women, which had been rising since the late 1960s, have stagnated and in some recent years declined. … Continue reading

Self-Esteem in Childhood and Occupational Achievements – Boys and Girls are different

This study investigates the impact of self-esteem during childhood on men’s and women’s occupational prestige in young adulthood. By combining first-hand information from parents in the Swedish Level-of-Living surveys (LNU) 2000 and their children in the Child-LNU in 2000 and the follow-up study in LNU-2010, we are able to assess how self-esteem during adolescence is … Continue reading

Wheelchair Users in Montreal and Quebec City – Disability reduces callback rates by employers by 50%

Despite wage subsidies and various other government programs that provide incentives for firms to hire workers with disabilities, this group is still disadvantaged in the labor market. An IZA discussion paper by Canadian researchers Charles Bellemare, Marion Goussé, Guy Lacroix and Steeve Marchand investigates the determinants and extent of labor market discrimination toward people with physical … Continue reading

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