Research in Labor Economics, Volume 28

RESEARCH IN LABOR ECONOMICS......Page 1
sdarticle_001.pdf......Page 2
sdarticle_002.pdf......Page 3
LIST OF CONTRIBUTORS......Page 4
Preface......Page 7
Introduction......Page 13
Conceptual framework and econometric model......Page 16
Social Interactions Variables......Page 17
Identifying Social Interactions......Page 18
Sample......Page 20
Reference Group and Economic Distance......Page 21
Econometric results: labor supply with social interactions......Page 22
Selecting the Reference Group......Page 23
Social Interactions Effects......Page 25
Additional Econometric Validity Checks of the Reference Group......Page 27
Interpreting the Importance of the Estimated Social Interactions Effect......Page 28
Implications for Tax Policy Calculations......Page 29
Conclusion......Page 30
Notes......Page 31
References......Page 32
Descriptive statistics......Page 35
Introduction......Page 36
The theoretical model......Page 38
Data......Page 42
The empirical model specification......Page 46
Budget constraints and model specifications......Page 47
The Hausman Model......Page 51
Alternative Model Specifications......Page 53
Labor supply responses to tax reforms......Page 56
Conclusion......Page 59
Notes......Page 60
References......Page 62
The Likelihood Function......Page 64
Introduction......Page 67
Data and overall patterns of transitions between labour market states......Page 69
A model of transitions between labour market states......Page 71
Correlations between Unobserved Individual Components, and Tests for Endogenous Selection......Page 78
Employment Transition Probabilities......Page 79
The Probabilities of Low-Paid Employment......Page 82
Predicted Transition Rates and State Dependence......Page 86
Concluding remarks......Page 87
Notes......Page 88
References......Page 89
Why Europeans work part-time? A cross-country panel analysis......Page 90
Introduction......Page 91
Some theory: the factors influencing part-time employment......Page 93
Business Cycles......Page 94
Labour Market Institutions......Page 96
Other Structural Variables......Page 98
Estimation Strategy......Page 100
Data......Page 103
The effect of the business cycle on part-time employment in the short-to-medium run......Page 104
Using a Panel of OECD Countries with General Labour Market Institutions......Page 107
Employing a Panel of EU Countries with Additional Institutional and Structural Variables......Page 108
The Relative Importance of the Business Cycle and Institutional and Structural Variables: A Contribution Analysis......Page 110
Conclusion......Page 112
Notes......Page 113
Acknowledgements......Page 117
References......Page 118
Trends in part-time work in EU-15 countries......Page 120
Part-Time Employment......Page 124
Business Cycle Indicators......Page 125
The Wage Differential between Part-Time and Full-Time Employment......Page 126
Econometric results......Page 131
Projecting behavioral responses to the next generation of retirement policies......Page 149
Utility......Page 153
Heterogeneous Elements of Utility......Page 154
Estimation......Page 155
Parameter Estimates......Page 159
Comparison of Observed and Predicted Outcomes......Page 160
Overview of the Earnings Test Issue......Page 165
Simulations of the Effects of Abolishing the Retirement Earnings Test between 62 and Full-Retirement Age......Page 166
Implications for Retirement Outcomes......Page 167
Implications for the Percent Collecting Social Security Benefits by Age and the Flow of Social Security Benefits and Taxes......Page 168
Implications for Retirement Outcomes......Page 170
Implications for Benefit Claiming......Page 171
Implications for the Flow of Taxes and Benefits......Page 172
Effects of changing minimum hours constraints......Page 173
How do provisions of voluntary personal accounts affect retirement?......Page 176
Structure of Baseline Voluntary Personal Accounts......Page 177
Voluntary Personal Accounts and Retirement Outcomes......Page 178
The Choice between Lump Sum Payments and Annuitized Benefits......Page 181
Benefits by Age......Page 185
Taxes and Benefits under Personal Accounts......Page 186
Conclusions......Page 187
Abolishing the Retirement Earnings Test versus Increasing the Early Entitlement Age......Page 188
Policies to Relax Minimum Hours Constraints......Page 189
In Summary......Page 190
Notes......Page 191
References......Page 196
Appendix......Page 199
Introduction......Page 204
The Employer’s Decision......Page 207
The Illegal Immigrants’ Decision......Page 210
Optimal policy......Page 213
The Optimal Enforcement Budget......Page 216
Comparative Statics......Page 218
Conclusion......Page 222
Notes......Page 223
References......Page 225
Introduction......Page 232
Theory......Page 235
Data......Page 236
Earnings Profiles......Page 242
Earnings Equations......Page 244
Displacement Costs......Page 247
Conclusion......Page 253
Notes......Page 254
References......Page 256
Introduction......Page 258
Theoretical framework......Page 260
Purpose......Page 262
The Empirical Model......Page 263
Sample Description......Page 264
Failure Equation......Page 266
Wage Equation......Page 269
Estimation Procedure......Page 270
Identifiability Issues......Page 271
Main Results......Page 272
Robustness Checks: Alternative Specifications......Page 276
Conclusions......Page 277
Notes......Page 278
References......Page 279
Minimum wage legislation......Page 281
How are fixed-term contracts used by firms? An analysis using gross job and worker flows......Page 284
Introduction......Page 285
Literature review and hypotheses to be tested......Page 286
Institutional background......Page 289
Data......Page 292
Gross Job and Worker Flows by Contract Type......Page 293
Net Employment Expectations and Gross Job and Worker Flows by Contract Type......Page 295
Empirical methodology......Page 299
Net Employment Expectations and Temporary to Permanent Job and Worker Flows......Page 300
Net Employment Expectations and Temporary to Permanent Contract Conversions......Page 304
Conclusions......Page 306
Notes......Page 307
Acknowledgments......Page 308
References......Page 309
Modeling the signaling value of the GED with an application to an exogenous passing standard increase in Texas......Page 312
Introduction......Page 313
The GED and the earnings of dropouts......Page 314
A simple signaling model......Page 318
The Signaling Value of the GED - Before and after the Passing Standard Increase......Page 320
Data......Page 324
Descriptive statistics......Page 325
Natural Experiment......Page 330
Fixed-Effects Specification......Page 333
Regression Discontinuity Specification......Page 334
Empirical results......Page 335
Natural Experiment Results......Page 340
Robustness Checks......Page 346
Reconciling Differences......Page 353
Conclusions......Page 356
Notes......Page 357
References......Page 359
Occupational gender composition and the gender wage gap in Sweden......Page 360
Introduction......Page 361
Data......Page 363
Econometric specification......Page 364
Empirical results......Page 365
Decomposing the gender wage gap......Page 370
Public versus private sector......Page 371
Conclusions......Page 373
Notes......Page 374
References......Page 375
Earnings functions and the measurement of the determinants of wage dispersion: extending the Blinder-Oaxaca approach......Page 377
Introduction......Page 378
The Determinants of Wage Inequality......Page 379
The Analysis of Wage Differences between Natives and Immigrants......Page 381
Implications for the Analysis of the Link between Immigration and Wage Dispersion in Israel......Page 382
The Decomposition of the Mean Difference of the Logarithms of Incomes by Population Subgroups......Page 384
Computing the Contribution of Each Population Group to the Various Components of the Breakdown......Page 386
Estimating the Contributions of the Variables, Their Coefficients in the Regressions, and the Unobservable Characteristics to the Overall Wage Dispersion......Page 387
Male Earnings Functions in Israel in 1982, 1990, and 1998......Page 392
The Components of the Overall Wage Dispersion......Page 394
The Relative Importance of the Between- and Within-Groups Dispersion and the Contribution of the Overlapping Component......Page 395
The Contribution of the Explanatory Variables and Their Coefficients and of the Unobserved Characteristics to the Wage Dispersion......Page 396
The decomposition of the change over time in the wage dispersion: methodology and empirical illustration......Page 399
The Determinants of the Change over Time in the Between-Groups Dispersion......Page 403
The Determinants of the Change over Time in the Value of the Overlapping Component......Page 404
The Contribution of Different Population Subgroups to the Various Components of the Change in the Overall Wage Dispersion......Page 405
Concluding comments......Page 408
Notes......Page 409
References......Page 410
Decomposing the Change over Time in the Within-Groups Dispersion......Page 417
Decomposing the Change over Time in the Between-Groups Dispersion......Page 420
Decomposing the Change over Time in the Overlapping Component......Page 426
Salary or benefits?......Page 434
Introduction......Page 435
A model of employer-provided benefits......Page 438
Data......Page 445
Employer-Provided Meals......Page 447
Child Care......Page 451
Dental and Health Insurance......Page 453
Benefits Packages......Page 457
Benefits at Government and Nonprofit Organizations......Page 459
Alternative Hypotheses and Historical Trends......Page 463
Conclusions and further research......Page 467
Notes......Page 468
References......Page 470