Girls born in 2000 are aspiring to do jobs that are paid 31 percent lower than males, according to a new IZA discussion paper by LSE researchers Warn N. Lekfuangfu and Grace Lordan. Boys born in 2000, on the other hand, have higher aspirations than previous male generations in terms of income, to the point … Continue reading
This paper analyses the effect of training participation on employees’ retention in the training company. It for the first time empirically combines the human capital and the monopsony theory by jointly controlling for the portability, visibility, and credibility of training. Based on an extensive German linked-employer-employee data set with detailed information on training history (WeLL-ADIAB), … Continue reading
Since the 1990s, there has been a growing interest in ALMPs. Today, expenditure in ALMPs is sizeable in most advanced economies and continues to increase. Between 2004 and 2009, ALMP expenditure grew continuously at an average annual rate of 5.8%, reaching an accumulated growth of 32.5% and a total spending of US$176.5 billion (PPP) in … Continue reading
This paper performs a cross-country level analysis on the impact of the level of specific youth minimum wages on the labor market performance of young individuals. We use information on the use and level of youth minimum wages, as compared to the level of adult minimum wages as well as to the median wage (i.e., … Continue reading
Researchers at Northwestern University investigated the possible relationship between having a criminal record and job performance by evaluating data from employees in sales or customer service jobs in call centers in the US. They found employees with a criminal record stayed in their roles on average 19 days longer than those who did not have … Continue reading
Using administrative employment data from the state of Washington, we use short-duration longitudinal panels to study the impact of Seattle’s minimum wage ordinance on individuals employed in low-wage jobs immediately before a wage increase. We draw counterfactual observations using nearest-neighbor matching and derive effect estimates by comparing the “treated” cohort to a placebo cohort drawn … Continue reading
Approximately all public school teachers are paid according to a salary schedule that dif- ferentiates pay by experience, seniority, and credentials, but not generally by observed performance. Education reformers have long viewed this as problematic for two reasons. First, the classroom environment presents a classic case of moral hazard: it is difficult for a principal … Continue reading
Programs designed to help disadvantaged workers improve their labor-market prospects may have effects beyond improvements in employment rates and income. One possible supplementary effect is improvements in subjective well-being, or how participants feel about their current life situations. Subjective well-being is important because there are social costs related to lower levels of well-being, and because … Continue reading
We present evidence suggesting that the so-called “fourth industrial revolution”, characterized by machine learning, big data, mobile robotics and cloud computing, may be skill-biased not only with respect to skills acquired through education, as available theoretical models and empirical evidence abundantly suggest, but also with respect to facets of noncognitive skills. Measuring the future direction … Continue reading
This paper provides an analysis of the labor market performance of immigrants in Germany. While immigrants make substantial contributions to the economy, this paper shows that they face more obstacles in the labor market than native workers, and that these obstacles are overcome only gradually and never fully. Some of the findings in this paper … Continue reading
The occupational structure of an establishment provides a description of its production process by detailing the distribution and relative intensity of tasks performed. In this paper, I investigate whether there are substantive differences in the occupational structures of low- and high-wage service sector establishments. I show that low-wage establishments organize production to use less labor … Continue reading
How does immigration of poor people affect the lives of natives? This old policy question has recently gained extra attention in countries with large immigrant and refugee inflows. One recurring concern in the public debate is that generous welfare states attract low-skilled immigrants who supposedly benefit from public spending while contributing little in taxes. Consequently, … Continue reading
More than one third of college-educated workers have a license that provides the right to practice a particular occupation. In contrast to certificates, these licenses—serving either as a productivity signal or acting as a restrictive practice—are associated with significantly higher earnings. Thus, it is possible that some part of the returns to college are in … Continue reading
Workers may want to change jobs for any number of reasons, which are not always related to poor working conditions. The criteria used to determine what defines a “better job” differs from one person to another, and evolves through different stages of life. For young parents, for example, their job search could be largely motivated … Continue reading
Increased globalization places competitive pressures on firms heavily involved in international trade. To be successful, firms must be innovative and productive—two attributes that rely greatly on a skilled workforce. Key in the toolbox of productive workers are science, technology, engineering and mathematics (STEM) skills. However, STEM skills are often not enough to generate significant productivity … Continue reading