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Multiple job holding, local labor markets, and the business cycle

Multiple job holding, local labor markets, and the business cycle

Our analysis can be differentiated from prior literature in several ways. We use an unusually large US micro data set covering a lengthy time period (1998 – 2013), enabling us to obtain precise estimates of the effects of labor market con- ditions on MJH. Because only one-in-twenty workers hold multiple jobs, sample size matters. Our large sample enables us to examine differences in MJH respon- siveness to business conditions for different worker groups based on gender, marital status, foreign born, and hourly versus salaried workers. And we are able to examine whether MJH responsiveness to business conditions changed during the Great Recession (and over time more generally). A key contribution of the paper is our focus on local labor markets (MSAs), distinguishing between esti- mates of MJH cyclicality that rely on cross-labor market differences versus within labor market changes in business conditions. We examine differences in how MJH is related to the two business cycle measures used in prior literature, the unemployment rate and employment growth. We find that the two measures are weakly correlated across MSAs and have largely independent effects on MJH. Finally, we utilize measures of occupational job attributes, which enable us to construct occupational skill and working condition indices for the primary and secondary jobs.
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Local labor markets and taste-based discrimination

Local labor markets and taste-based discrimination

where t is the commutating cost (see Fig. 1). The introduction of distance to job is equivalent to introducing heterogeneity in worker preferences. This is a physi- cal distance but it can also be interpreted as a non-wage job characteristic offered by the firms (type of contract, full or part-time, etc.), firm characteristics them- selves (size, environmental, or social policies, etc.), or informational frictions. This implies that different jobs are not perfect substitutes for each other. Consequently, labor supply does not react to small movements in wages: the wage elasticity of labor supply is small. This heterogeneity leads to market power in the firms’ favor, which latter can set wages and enjoy an oligopsony position in the labor mar- ket. This is consistent with Manning and Petrongolo (2011), who show that a large number of local labor markets compose British labor market because of a rela- tively high cost of distance. Brueckner et al. (2002) point out the importance of urban location in the presence of monopsony and how wages are affected by this market power.
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The disutility of commuting? The effect of gender and local labor markets

The disutility of commuting? The effect of gender and local labor markets

Standard economic theory postulates that commuting is a choice behavior undertaken when compensated through either lower rents or greater amenities in the housing market or through higher wages in the labor market. By exploiting exogenous shocks to commuting time, this paper investigates the impact on well-being of increased commuting. Ceteris paribus, exogenous increases in commuting time are expected to lower well- being. We find this holds for women but not men. This phenomenon can be explained, in part, by the different labor markets in which women operate. Where local labor markets are thin, women report significantly lower well-being when faced with an increased commute. This does not hold for tight local labor markets. Further our findings reveal that it is full-time working women in the managerial and professional tier of the occupational hierarchy who are most affected. These results suggest that the policy solution for reducing the adverse effects of commuting may require changes to labor market institutions rather than changes to transport policy.
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Local labor markets and the persistence of population shocks

Local labor markets and the persistence of population shocks

In addition to this variation within local labor markets, there was also sizeable variation in expellee inflow rates between local labor markets. Figure 3c illustrates this between component of the total variation in expellee inflow rates for West Germany. The between component varies between 0.029 and 0.738, with a mean of 0.257 and a standard deviation of 0.162. The figure shows that much of the variation in the between component came from the stark difference between local labor markets in the north and east of the country and those in the west and south-west. As noted before, this east-west divide was mostly the result of the largely undirected flight to the most accessible West German regions at the end of World War II; and it was reinforced by the French refusal to allow any expellees into their occupation zone in the south-west of Germany. Importantly, however, Figure 3d, which zooms in to the state of Baden-W¨urttemberg, shows that the sharp discontinuity of expellee inflow rates at the French occupation zone largely disappears when inflow rates are calculated at the level of local labor markets. This is mainly because some labor markets spanned counties from both sides of the occupation zone border. Moreover, the low inflow rate into Stuttgart counter-balanced the high inflow rates of counties in its hinterland, including those at the occupation zone border.
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International Trade and Local Labor Markets: Do Foreign and Domestic Shocks Affect Regions Differently?

International Trade and Local Labor Markets: Do Foreign and Domestic Shocks Affect Regions Differently?

employment embedded in imports (or exports) of industry j in year t. The underlying assumption is that, within each industry, the labor-intensity of goods that are exported, or domestically produced goods that are also imported, is similar to the national average. One possible problem that could plague our trade measures is that it may be expected that imports are more labor intensive than the national average for their respective industry and exports are less labor intensive. Of course, such a problem would also occur for other studies trying to assess trade’s impact (e.g., Autor et al., 2013) because we do not know exactly which domestic firms are directly affected. Yet, as long as the differences in labor intensity that are affected by trade in a given industry are not systematically different across regions, all this would do is affect the scaling of the regression coefficients—e.g., if a higher than average numbers of workers are being displaced by imports, then the import regression coefficient in an employment model will be larger in magnitude.
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International Trade and Local Labor Markets: Are Foreign and Domestic Shocks Created Differently?

International Trade and Local Labor Markets: Are Foreign and Domestic Shocks Created Differently?

Therefore, in this paper we assess the regional effects of increased U.S. international trade from 1990 to 2010, including both the effects relative to equivalent-sized domestic demand shocks, and their total effects after controlling for domestic demand shocks. In contrast to previous studies of the U.S., we examine trade between the U.S. and all other countries and consider both exports and imports. We construct regional measures of exposure to international trade shocks based on regional employment-intensiveness in sectors experiencing changes in national exports and imports. Also different from other similar studies (e.g., Leichenko and Silva, 2004; Autor et al., 2013), we convert changes in national exports and imports into the associated changes in employment. The resulting regional trade measures represent the changes in regional employment that would occur if employment in each of the region’s industries changed at the rate predicted nationally because of changes in exports and imports. Controlling for domestic labor demand shocks provides both an assessment of their influence and eliminates bias that would otherwise occur if the trade and domestic shocks are correlated.
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A note on industrial adjustment and regional labor markets in Russia

A note on industrial adjustment and regional labor markets in Russia

How does the impact of the transition on industrial structure in Russia influence local labor markets, regional labor markets, and employment in small and large firms?. Local Labor Marke[r]

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Labor supply and the business cycle: The “Bandwagon Worker Effect”

Labor supply and the business cycle: The “Bandwagon Worker Effect”

The relationship between the labor force participation and the business cycle has become a topic in the economic literature. However, few studies have considered whether the cyclical sensitivity of the labor force participation is influenced by “social effects”. In this paper, we construct a theoretical model to develop the “Added Worker Effect” and the “Discouraged Worker Effect”, and we integrate the “social effects”, coining a new concept, the Bandwagon Worker Effect (BWE). To estimate the cyclical sensitivity of the labor force participation, we employ a panel dataset of fifty Spanish provinces for the period 1977– 2015. Finally, we use spatial econometrics techniques to test the existence of the BWE in the local labor markets in Spain. Our results reveal that there exists a positive spatial dependence in the cyclical sensitivity of the labor force participation that decreases as we fix a laxer neighborhood criterion, which verifies the existence of the BWE. From the perspective of economic policy, our work confirms that “social effects” play a key role at the time of determining the economic dynamics of the territories.
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Labor market reforms in Europe: towards more flexicure labor markets?

Labor market reforms in Europe: towards more flexicure labor markets?

To summarize, on the face of it, there have been some important changes in the field of legislation on employ- ment protection, an institution that was considered highly path-dependent before the crisis. Overall, there is a trend in some of the most segmented countries towards lower dismissal costs for permanent workers in com- bination with a moderate (and sometimes ambiguous) re-regulation of temporary contracts. Overall, this tends to narrow the regulatory gap between permanent and temporary contracts at least to some extent. Nonethe- less, have these changes contributed to reducing segmen- tation? Given that many of the reforms have only been implemented in the past three to 5 years—in a situation with limited labor demand in most of the countries—it might still be too early to evaluate their impact on hir- ing practices with currently available data. However, revisiting Fig. 1 casts some doubt on their effectiveness, showing that the share of temporary contracts has even increased in the countries that deregulated EPL during the crisis. Between 2010 and 2014, the share of workers aged 15–29 increased by roughly seven percentage points in Italy and Spain, three in France and Portugal and one in Greece. Of course, we do not have a counterfactual situation, thus making it difficult to assess the exact influ- ence of the reforms.
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Report : local authority forum on farmers' markets, 16th January 2008, Dublin

Report : local authority forum on farmers' markets, 16th January 2008, Dublin

In summary, the International Food Policy Research Institute report cites three main reasons for the shortages that are pushing up food prices. The first is rising consumption as the appetite of fast-growing nations, such as China, is rising as economic booms cause a surge in demand for meat and dairy products. The second is competition from bio-fuels as the cars of the rich are now rivalling the bellies of the poor for corn, cane and edible oils. The third is climate change as global warming is putting pressure on water needed to irrigate crops. The world has been consuming more than it produces for the past five years and the globalised food industry cannot satisfy global demand. Local food growing and food marketing economies need to be developed to provide more staple foods for consumers and easily accessible markets for producers.
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Austrian economics and the analysis of labor markets

Austrian economics and the analysis of labor markets

The kind of theory Hayek eventually uses does not involve rational agents maximising a set of objectives under a constraint, does not involve functional relations so basic devices like supply and demand functions have no place, and does not use any notion of equilibrium. The kind of theory he does use, by contrast, involves non-rational agents following tacit social rules of conduct, operating in a world of radical uncertainty and even ignorance with this process generating an order. The kind of method Hayek eventually uses does not involve mathematics or statistics, does not employ the deductive method (or any of its variants), does not involve regressions and hypothesis testing, and does not make use of unrealistic or (knowingly) false axioms and assumptions. The kind of method he does use, by contrast, is close to what I call causal- explanatory, and is close to critical realism. Furthermore, Hayek’s eventual method recognises a realist social ontology where the world is structured and transformational. Let is weave together a Hayekian/critical realist understanding of markets.
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A real options analysis of dual labor markets and the single labor contract

A real options analysis of dual labor markets and the single labor contract

With aggregate unemployment rates reaching double digits in many countries, labor market reforms are at the center of the economic policy debate. This is especially the case in southern European countries characterized by "dual labor markets". A concept that describes labor regulations with two main types of contracts: on one side, permanent contracts protected with high …ring costs; on the other side, temporary contracts with low …ring costs that must be upgraded to permanent when worker’s seniority at the job reaches a certain threshold. 1 These

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The “task approach” to labor markets: an overview

The “task approach” to labor markets: an overview

Diese Restriktionen leiten sich aus der Tatsache ab, dass die gängige Produktionsfunktion implizit zwei verschiedene Aspekte der Produktion gleichsetzt. Ein Aspekt ist, welche Faktoren als Input eingesetzt werden, z.B. Kapital, hoch- qualifizierte Arbeit, gering-qualifizierte Arbeit. Der andere ist, welchen Nutzen diese Faktoren stiften. Nach dem gängi- gen Ansatz sind die Faktor-Identität und seine Rolle in der Produktionsfunktion synonym. In der Realität jedoch ist die Grenze zwischen „Arbeitsfunktionen“ (labor tasks) und „Kapitalfunktionen“ (capital tasks) in der Produktion durchlässig und veränderlich. Wir beobachten unzählige Beispiele, wo bei bestimmten Tätigkeiten Arbeit aufgrund des technischen Fortschritts durch Kapital ersetzt wird – zum Beispiel bei der Ausgabe von Flugtickets und von Sitz- plätzen an Check-in-Schaltern in Flughäfen – während gle- ichzeitig bei anderen Aufgaben und Tätigkeiten ein komple- mentäres Verhältnis zwischen Arbeit und Kapital entsteht, etwa indem das Flughafenpersonal durch die Technik in die Lage versetzt wird, rasch Alternativflüge zu finden und neue Tickets auszustellen. Diese fortschreitende Zweiteilung der Arbeit hat eine klare ökonomische Logik: Neuartige Auf- gaben – wie sie neue Produkte, Technologien oder Di- enstleistungen erfordern – werden oftmals zuerst Arbeit- nehmern zugeteilt, da Menschen flexibel und anpassungs- fähig sind. Sobald sie stärker formalisiert und kodifiziert sind, sind sie reif für die Automatisierung, da Maschi- nen bei routinemäßiger Ausführung sich wiederholender Tätigkeiten typischerweise Kostenvorteile gegenüber men- schlicher Arbeit haben.
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Analysis of the Main Employment Trends at EU and Romanian Levels

Analysis of the Main Employment Trends at EU and Romanian Levels

and 87.9% (RO). In 2017, the employment rate among tertiary education graduates was much higher than the total average with 11.8 pp. in EU28 and 19.1 p.p. in Romanian. Only a little over half of those who have reached primary or secondary education have been employed - 54.9% (EU28); 54.4% (AE19); 63.6% (MB) and 54.7% (RO). The employment rate for people with medium education was between the two mentioned levels. The rise of the proportion of highly educated people is very important for increase overall participation rate on the labor market (Gros, 2019) and reducing in-work poverty (Ghenta, 2017). Raising the level of education and endowing people with skills for the knowledge-based society is a major concern of European employment policies that address the core objectives of the Europe 2020 strategy on employment and education.
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The impact of Syrian refugees on natives’ labor market outcomes in Turkey: evidence from a quasi-experimental design

The impact of Syrian refugees on natives’ labor market outcomes in Turkey: evidence from a quasi-experimental design

Finally, it should be noted that there are important conceptual differences between “immigrants” and “refugees,” which can potentially affect the interpretation of our esti- mates. Tumen (2015) argues that the estimates obtained from refugee data can be generalized to the immigration literature to the extent that data on refugees accurately represent data on general immigrants. 20 However, this condition is not immediately sat- isfied most of the time. Syrian refugees in Turkey were the residents of Northern Syria and their main motivation in moving to Turkey was the search for immediate security. A typical immigrant, on the other hand, moves to (labor market) opportunity; that is, immigration is driven by selectivity and it does not involve a “forced” movement. In this sense, immigrants are more likely to complement natives, while refugees tend to substi- tute them out. Which segments of native workers are substituted out by refugees depends on the characteristics of the refugees and natives. There is also a broad controversy in the related literature as a number of studies document a “refugee gap” in labor market out- comes suggesting that refugees have a more disadvantaged position in the labor market than normal immigrants, while other studies say that refugees earn even more than immi- grants. Whether the refugee-immigrant differences require treating them differently in econometric analysis is not clear and should be kept in mind when interpreting the empir- ical results. It is clear, however, that the refugee data offers an obvious advantage in the sense that it allows for constructing quasi-experimental econometric designs, while the immigrant data do not allow for straightforward quasi-experiments and more difficult to obtain causal estimates.
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Macrostabilization of the Migration Phenomenon

Macrostabilization of the Migration Phenomenon

Abstract: Labour migration is a present phenomenon in the European Union. This phenomenon takes over the entire European continent, but especially in the EU countries. The labor market in Europe is increasingly affected by population aging. Economic differences between European countries make workforce in developing countries to move to developed countries where they find it easier to work and receive higher remuneration than in their home countries. This article tracks labor migration from/to EU, employment in Romania and Romanian migration towards the countries of Western Europe. It also presents statistics on labor migration in the EU and its impact on the labor market.
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Oligopsony and monopsonistic competition in labor markets

Oligopsony and monopsonistic competition in labor markets

We begin with an empirical example that is difficult to explain using a competitive model. One key prediction of perfectly competitive labor markets is the “law of one wage,” which holds that there should be a single market wage for a given quality of worker. Even in goods markets with identical products, prices often vary. The existence of substantial wage dispersion among workers of very similar quality suggests that labor market imperfections are important and inevitably give employ- ers some oligopsony power. A large empirical literature, dating back to the 1940s, finds evidence of substantial wage dispersion among workers that do the same job in the same city. The classic references are the case studies of Lester (1946), Reynolds (1951) and Slichter (1950). Although the data in these studies are now 50 years old, their conclusions probably remain valid today.
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Essays In Asset Pricing And Labor Markets

Essays In Asset Pricing And Labor Markets

tions of the changing labor demographics in the U.S. for business cycle volatility. Jaimovich, Pruitt, and Siu (2013) focus on the differential fluctuations of hours experienced by young and old employees, and argue for capital-experience complementarity. I use this insight to model the differential role of young and old employees in production. Acemoglu, Akcigit, and Celik (2014) find that firms that plan to intensively engage in innovative activity tend to hire younger managers. While I focus on the entire skilled workforce, and a broader def- inition of technological progress and investment, the causal chain in this paper that young employees sort to firms that have future expectations of high-technology investments is in line with their findings. These papers focus on the role of young and old employees in production like the present paper, but do not study asset pricing implications. Gˆ arleanu, Kogan, and Panageas (2012) study the implications of displacement risk induced by inno- vation that experienced agents face for the value premium. In their model, growth firms and future generations are beneficiaries of innovation, and innovation constitutes a negative shock to existing agents’ human capital. Therefore, growth firms become a hedge against existing agents’ income risk. In this paper, I view young and old employees as differential factors of production rather than focusing on their portfolio choice, and consider the firm hiring decisions that depend on the growth opportunities they face.
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Risk and Unraveling in Labor Markets

Risk and Unraveling in Labor Markets

Periodic markets – and participants in markets – might suffer for unraveling. This has to do with the purpose of the market institution itself. By providing a well-specified time and location – not necessarily in terms of geographical space – in which buyers and sellers can interact, a market coordinates supply and demand, reduces search and transaction costs and increases the information available to the participants. Since unraveling moves a significant proportion of the transactions outside of the market, it impedes this coordinating function and, in extreme cases, may lead to its dissolution. Another problem arises when unraveling causes trades being executed before all information becomes known. If information is revealed over time, ex-post efficiency requires that agents wait as long as possible before they trade. Early trades therefore cannot be ex-post efficient. In general, observers and participants in markets agree on this, and attempts are often made to reverse the trend and implement bind- ing transactions dates. In some cases these are adhered to, in others, however, the incentive to contract early seems to be too large. Indeed, risk aversion and uncertainty, for example on the potential output, provide incentives to agents on early contracting. Unraveling can be seen as an insurance phenomenon and a risk sharing attitude. The desirability of unraveling is ambiguous and the role of information seems to be a crucial component. At the same time, Roth and Xing (1994) observe, unraveling is not a universal phenomenon. Indeed, there are many markets where the contract procedures and dates are stable and market participants seem to have no interest in moving early. It is thus reasonable to ask how market institutions or the (behavioral) characteristics of the participants in a market affect the timing decision.
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Micro-Unit 4 - Factor Markets.pdf

Micro-Unit 4 - Factor Markets.pdf

The Effects of Unions on Wages and Employment in Competitive and Monopsonistic Labor Markets... The Effects of Unions on Wages and Employment in Competitive and Monopsonistic Labor Mar[r]

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