scispace - formally typeset
Search or ask a question

Showing papers by "Institute for the Study of Labor published in 2018"


Journal ArticleDOI
TL;DR: This article synthesize two related literatures on firm-level drivers of wage inequality and develop a model of wage setting in which workers have idiosyncratic tastes for different workplaces, which can rationalize standard fixed effects specifications and also match the typical rent-sharing elasticities in the literature.
Abstract: We synthesize two related literatures on firm-level drivers of wage inequality. Studies of rent sharing that use matched worker-firm data find elasticities of wages with respect to value added per worker in the range of 0.05–0.15. Studies of wage determination with worker and firm fixed effects typically find that firm-specific premiums explain 20% of overall wage variation. To interpret these findings, we develop a model of wage setting in which workers have idiosyncratic tastes for different workplaces. Simple versions of this model can rationalize standard fixed effects specifications and also match the typical rent-sharing elasticities in the literature.

473 citations


Journal ArticleDOI
TL;DR: In this article, the authors identify patterns in how households adapt to increased sea/freshwater flooding and soil salinity, and analyze nationally representative socioeconomic and migration data against a suite of environmental variables constructed at the sub-district level.
Abstract: Climate change is not only altering weather patterns but also accelerating sea-level rise, leading to increased inundation and saline contamination of soils. Given projected sea-level rise, it is imperative to examine the extent to which farmers in coastal Bangladesh can adapt by diversifying economic activities before resorting to migration within and across borders. Here, to identify patterns in how households adapt to increased sea/freshwater flooding and soil salinity, we analyse nationally representative socioeconomic and migration data against a suite of environmental variables constructed at the sub-district level. Our results show that inundation alone has negligible effects on migration and agricultural production. However, gradual increases in soil salinity correspond to increasing diversification into aquaculture and internal migration of household members. Salinity is also found to have direct effects on internal and international migration even after controlling for income losses, with mobility restricted to certain locations within Bangladesh. Our study suggests that migration is driven, in part, by the adverse consequences of salinity on crop production. Projected sea-level rise and increased flooding threaten coastal agriculture. Gradual increases in soil salinity, but not inundation alone, are shown to correspond to increasing diversification into aquaculture and higher levels of internal migration.

187 citations


Journal ArticleDOI
TL;DR: In this article, the authors apply the synthetic control method to reexamine the labor market effects of the Mariel Boatlift, first studied by David Card (1990), and find no significant difference in the wages of workers in Miami relative to its control after 1980.
Abstract: We apply the synthetic control method to reexamine the labor market effects of the Mariel Boatlift, first studied by David Card (1990). This method improves on previous studies by choosing a control group of cities that best matches Miami's labor market trends pre-Boatlift and providing more reliable inference. Using a sample of non-Cuban high school dropouts we find no significant difference in the wages of workers in Miami relative to its control after 1980. We also show that by focusing on small subsamples and matching the control group on a short pre-1979 series, as done in Borjas (2017), one can find large wage differences between Miami and the control because of large measurement error. [ABSTRACT FROM AUTHOR]

121 citations


Journal ArticleDOI
01 Feb 2018-Kyklos
TL;DR: In this paper, the authors combine community-level outcomes of 27 votes about immigration issues in Switzerland with census data to estimate the effect of immigration on natives' attitudes towards immigration, and they find that the share of culturally different immigrants is a significant and sizable determinant of anti-immigration votes, while the presence of culturally similar immigrants does not affect natives' voting behavior at all.
Abstract: We combine community-level outcomes of 27 votes about immigration issues in Switzerland with census data to estimate the effect of immigration on natives' attitudes towards immigration. We apply an instrumental variable approach to take potentially endogenous locational choices into account, and we categorize immigrants into two groups according to the cultural values and beliefs of their source country to understand how the cultural distance between natives and immigrants affects this relationship.We find that the share of culturally different immigrants is a significant and sizable determinant of anti-immigration votes, while the presence of culturally similar immigrants does not affect natives' voting behavior at all in most specifications. The cultural distance between immigrant and native residents thus appears crucial in explaining the causal effect of immigration on natives' attitudes towards immigration, and we argue that the differential impact is mainly driven by natives' concerns about compositional amenities. We finally show that the elasticity of the share of right-wing votes in favor of the Swiss People's Party is much more elastic with respect to the share of culturally different immigrants than natives' attitudes themselves, suggesting that the party has disproportionally gained from changes in attitudes caused by immigrant inflows.

77 citations


Journal ArticleDOI
TL;DR: In this paper, the authors review the evidence on social incentives, namely on how social interactions with colleagues, subordinates, bosses, customers, and others shape agents' effort choices in organizations.
Abstract: We review the evidence on social incentives, namely on how social interactions with colleagues, subordinates, bosses, customers, and others shape agents’ effort choices in organizations. We propose...

76 citations


Journal ArticleDOI
TL;DR: This article found that people who are told the actual share of immigrants in their country become less likely to state that there are too many of them and donate more money to a pro-immigration charity.
Abstract: Many people in the U.S. and in Europe have biased beliefs about immigrants. In this paper, we examine whether providing information about immigrants affects people’s attitude towards them. We first use a large representative cross-country survey experiment with more than 19,000 participants to show that people who are told the actual share of immigrants in their country become less likely to state that there are too many of them. We also conduct an online experiment in the U.S., where we provide information about immigration to half of the participants, before measuring their attitude towards immigrants with self-reported and behavioral outcomes. We find that participants in the treatment group update their beliefs about immigrants, and they donate more money to a pro-immigrant charity. However, their self-reported policy preferences remain broadly unchanged, and they do not become more willing to sign a petition in favor of immigration reform. Interestingly, Republicans and people who are worried about immigration respond more strongly to the information treatment, both in terms of their views on immigrants and their policy preferences. Finally, we also measure people’s self-reported policy preferences, attitudes, and beliefs in a four week follow-up, and we show that the treatment effects persist

65 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined the health trajectories of immigrants within the context of selection and migration policies and found that immigrants who move to Israel have compromised health and are significantly less healthy than comparable natives.
Abstract: Previous literature on a variety of countries has documented a "healthy immigrant effect" (HIE). Accordingly, immigrants arriving in the host country are, on average, healthier than comparable natives. However, their health status dissipates with additional years in the country. HIE is explained through the positive self-selection of healthy immigrants as well as the positive selection, screening and discrimination applied by host countries. In this article we study the health trajectories of immigrants within the context of selection and migration policies. Using SHARE data we examine the HIE, comparing Israel and 16 European countries that have fundamentally different migration policies. Israel has virtually unrestricted open gates for Jewish people around the world, who in turn have ideological rather than economic considerations to move. European countries have selective policies with regards to the health, education and wealth of migrants, who also self-select themselves. Our results provide evidence that (1) immigrants who move to Israel have compromised health and are significantly less healthy than comparable natives. Their health disadvantage persists for up to 20 years of living in Israel, after which they become similar to natives; (2) immigrants who move to Europe have significantly better health than comparable natives. Their health advantage remains positive for many years. Even though during some time lapses they are not significantly different from natives, their health status never becomes worse than that of natives. Our results are important for migration policy and relevant for domestic health policy.

64 citations


Journal ArticleDOI
TL;DR: In this article, the authors analyzed the changes in the task content of jobs in 24 European countries between 1998 and 2015, and found that the intensity of non-routine cognitive tasks grew in all countries, while manual tasks declined.
Abstract: We analyze the changes in the task content of jobs in 24 European countries between 1998 and 2015. We link the O*NET occupational data with the European Union Labour Force Survey (EU†LFS), and use the methodology of Acemoglu and Autor (). We find that the intensity of non†routine cognitive tasks grew in all countries, while the intensity of manual tasks declined. Workforce upskilling was the major factor contributing to these developments. The intensity of routine cognitive tasks grew in most Central and Eastern European countries, but it declined in Western European countries. This difference is attributed to the contrasting patterns of structural changes in these groups of countries.

60 citations


Journal ArticleDOI
TL;DR: It is demonstrated that the initial decline is followed by a partial rebound in births over the next few months, implying that populations mitigate some of the fertility cost by shifting conception month, which helps explain the observed peak in late-summer births in the United States.
Abstract: We estimate the effects of temperature shocks on birth rates in the United States between 1931 and 2010. We find that days with a mean temperature above 80°F cause a large decline in birth rates 8 to 10 months later. Unlike prior studies, we demonstrate that the initial decline is followed by a partial rebound in births over the next few months, implying that populations mitigate some of the fertility cost by shifting conception month. This shift helps explain the observed peak in late-summer births in the United States. We also present new evidence that hot weather most likely harms fertility via reproductive health as opposed to sexual activity. Historical evidence suggests that air conditioning could be used to substantially offset the fertility costs of high temperatures.

60 citations


Journal ArticleDOI
TL;DR: The authors used matched employer-employee data from 2013-14 and found that the women-don't-ask account is incorrect and women do ask for more hours of work than men.
Abstract: Women typically earn less than men. The reasons are not fully understood. Previous studies argue that this may be because (i) women ‘don’t ask’ and (ii) the reason they fail to ask is out of concern for the quality of their relationships at work. This account is difficult to assess with standard labor-economics data sets. Hence we examine direct survey evidence. Using matched employer-employee data from 2013-14, the paper finds that the women-don’t-ask account is incorrect. Once an hours-of-work variable is included in ‘asking’ equations, hypotheses (i) and (ii) can be rejected. Women do ask. However, women do not get.

55 citations


Journal ArticleDOI
TL;DR: In this article, the authors used variation in the details and timing of state and local BTB policies to test BTB's effects on employment for various demographic groups, and found that when an applicant's criminal history is unavailable, employers statistically discriminate against demographic groups that include more ex-offenders.
Abstract: Jurisdictions across the United States have adopted “ban the box” (BTB) policies preventing employers from conducting criminal background checks until late in the job application process. Their goal is to improve employment outcomes for those with criminal records, with a secondary goal of reducing racial disparities in employment. However, removing information about job applicants’ criminal histories could lead employers who don’t want to hire ex-offenders to guess who the ex-offenders are, and avoid interviewing them. In particular, employers might avoid interviewing young, low-skilled, black and Hispanic men when criminal records are not observable, guessing that these applicants are more likely to be ex-offenders. This would exacerbate racial disparities in employment. In this paper, we use variation in the details and timing of state and local BTB policies to test BTB’s effects on employment for various demographic groups. We find that BTB policies decrease the probability of being employed by 3.4 percentage points (5.1%) for young, low-skilled black men, and by 2.3 percentage points (2.9%) for young, low-skilled Hispanic men. These findings support the hypothesis that when an applicant’s criminal history is unavailable, employers statistically discriminate against demographic groups that include more ex-offenders.

Journal ArticleDOI
TL;DR: In this paper, the effects of personality traits and IQ on lifetime earnings of the men and women of the Terman study, a high-IQ U.S. sample, were investigated.

Posted Content
TL;DR: Results show that travel costs constitute an important friction to collaboration: after a low-cost airline enters, the number of collaborations increases between 0.3 and 1.1 times, a result that is robust to multiple falsification tests and causal in nature.
Abstract: We develop a simple theoretical framework for thinking about how geographic frictions, and in particular travel costs, shape scientists' collaboration decisions and the types of projects that are developed locally versus over distance. We then take advantage of a quasi-experiment — the introduction of new routes by a low-cost airline — to test the predictions of the theory. Results show that travel costs constitute an important friction to collaboration: after a low-cost airline enters, the number of collaborations increases between 0.3 and 1.1 times, a result that is robust to multiple falsification tests and causal in nature. The reduction in geographic frictions is particularly beneficial for high quality scientists that are otherwise embedded in worse local environments. Consistent with the theory, lower travel costs also endogenously change the types of projects scientists engage in at different levels of distance. After the shock, we observe an increase in higher quality and novel projects, as well as projects that take advantage of complementary knowledge and skills between sub-fields, and that rely on specialized equipment. We test the generalizability of our findings from chemistry to a broader dataset of scientific publications, and to a different field where specialized equipment is less likely to be relevant, mathematics. Last, we discuss implications for the formation of collaborative R&D teams over distance.

BookDOI
TL;DR: In this paper, the authors examined both the determinants and the effects of changes in the rigidity of labor market legislation across countries over time, and found that changes in rigidity do not systematically affect economic growth but do lower income inequality.
Abstract: This paper examines both the determinants and the effects of changes in the rigidity of labor market legislation across countries over time. Recent research identifies the origin of the legal system as being a major determinant of the cross-country variation in the rigidity of employment protection legislation. However, the supporting evidence is largely confined to levels of regulation and is almost exclusively based on international cross-section data for the post-1995 period. This paper introduces a new index capturing the rigidity of employment protection legislation (LAMRIG) for an unbalanced panel of more than 140 countries over time starting in 1960. Although the importance of legal origins in explaining the level of rigidity of labor regulations across countries is replicated using LAMRIG, their explanatory power is much weakened for changes over time (1960-2004.) More important as determinants of such changes are the level of development and other reforms such as trade liberalization. With respect to the effects of changes in the rigidity of labor regulations on growth and inequality, which have been very controversial in the literature, results with LAMRIG support Freeman’s conjecture that changes in rigidity do not systematically affect economic growth but do lower income inequality.

ReportDOI
TL;DR: In this article, the role played by the matching of workers to firms in explaining geographical wage differences was investigated and it was shown that high quality workers are significantly more likely to be matched to high-quality plants.
Abstract: In most countries, average wages tend to be higher in larger cities. In this paper, we focus on the role played by the matching of workers to firms in explaining geographical wage differences. Using rich administrative German data for 1985-2014, we show that wages in large cities are higher not only because large cities attract more high-quality workers, but also because high quality workers are significantly more likely to be matched to high-quality plants. In particular, we find that assortative matching-measured by the correlation of worker fixed effects and plant fixed effects-is significantly stronger in large cities. The elasticity of assortative matching with respect to population has increased by around 75%in the last 30 years. We estimate that in a hypothetical scenario in which we keep the quality and location of German workers and plants unchanged, and equalize within-city assortative matching geographical wage inequality in Germany would decrease significantly. Overall, assortative matching magnifies wage differences caused by worker sorting and is a key factor in explaining the growth of wage disparities between communities over the last three decades. If high-quality workers and firms are complements in production, moreover, increased assortative matching will increase aggregate earnings. We estimate that the increase in within-city assortative matching observed between 1985 and 2014 increased aggregate labor earnings in Germany by 2.1%, or 31.32 billion euros. We conclude that assortative matching increases earnings inequality across communities, but it also generates important efficiency gains for the German economy as a whole.

Journal ArticleDOI
TL;DR: In this paper, the UK's pioneering "SPI adjustment" method was used to address the problem of survey under-coverage of top incomes, which leads to bias in survey-based estimates of overall income inequality.
Abstract: Survey under-coverage of top incomes leads to bias in survey-based estimates of overall income inequality. Using income tax record data in combination with survey data is a potential approach to address the problem; we consider here the UK’s pioneering ‘SPI adjustment’ method that implements this idea. Since 1992, the principal income distribution series (reported annually in Households Below Average Income) has been based on household survey data in which the incomes of a small number of ‘very rich’ individuals are adjusted using information from ‘very rich’ individuals in personal income tax return data. We explain what the procedure involves, reveal the extent to which it addresses survey under-coverage of top incomes, and show how it affects estimates of overall income inequality. More generally, we assess whether the SPI adjustment is fit for purpose and consider whether variants of it could be employed by other countries.

Journal ArticleDOI
TL;DR: The mediating role of sleep debt and daytime sleepiness in the relationship between sleep and mental health symptoms in young adults, a particularly vulnerable population, is explored.
Abstract: Background Sleep duration and chronotype (i.e., morningness-eveningness) are associated with increased depression and anxiety risk, but differences in individual sleep need and lifestyle may mean these sleep parameters do not present the same risk across all individuals. This study explored the mediating role of sleep debt and daytime sleepiness in the relationship between sleep and mental health symptoms in young adults, a particularly vulnerable population. Methods Young adult university students (n = 2,218) and young adults from the general population in the United States (n = 992) provided estimates of actual and optimal sleep duration, and completed validated measures of sleepiness, chronotype, and depression and anxiety risk. Mediation models examining sleepiness and sleep debt (i.e., difference between optimal and actual sleep) as parallel mediators were tested. Results Sleepiness and sleep debt mediated the relationship between short sleep and depression and anxiety risk in the university sample, while sleepiness mediated these relationships in the general population sample. Sleepiness and sleep debt also mediated the impact of evening-type preferences on depression and anxiety risk in university students, but no mediation of this effect was found in young adults from the general population. Conclusions This study reports potential mediating mechanisms related to the increased mental health risk conferred by short sleep and evening chronotype. These results have implications for how primary care physicians assess psychopathology risk, arguing for a focus on the assessment of daytime sleepiness and sleep debt in university populations, while for young adults in the general population, these factors may be less important.

ReportDOI
TL;DR: In this paper, the authors provide evidence for the UK and US as well as some international evidence that underemployment rather than unemployment lowers pay in the years after the Great Recession.
Abstract: Large numbers of part-time workers around the world, both those who choose to be part-time and those who are there involuntarily and would prefer a full-time job report they want more hours. Full-timers who say they want to change their hours mostly say they want to reduce them. When recession hit in most countries the number of hours of those who said they wanted more hours, rose sharply and there was a fall in the number of hours that full-timers wanted their hours reduced by. Even though the unemployment rate has returned to its pre-recession levels in many advanced countries, underemployment in most has not.We produce estimates for a new, and better, underemployment rate for twenty-five European countries. In most underemployment remains elevated. We provide evidence for the UK and the US as well as some international evidence that underemployment rather than unemployment lowers pay in the years after the Great Recession. We also find evidence for the US that falls in the home ownership rate have helped to keep wage pressure in check. Underemployment replaces unemployment as the main influence on wages in the years since the Great Recession.

Journal ArticleDOI
TL;DR: In this article, the gender-specific effects of trade liberalization on participation in market work, domestic duties, and marriage rates in Indonesia were analyzed, showing that female work participation increased and participation in domestic duties declined in regions that were more exposed to input tariff reductions.
Abstract: We analyze the gender-specific effects of trade liberalization on participation in market work, domestic duties, and marriage rates in Indonesia. We show that female work participation increased and participation in domestic duties declined in regions that were more exposed to input tariff reductions. The effects of output tariff reductions were much less pronounced, and we find little impacts on men. Among the potential channels, we find that reductions in input tariffs led to a relative expansion of more female-intensive sectors as well as a decrease in sectoral gender segregation, especially among the low skilled. Liberalization also led to delayed marriage among both sexes and reduced fertility among less educated women.

Journal ArticleDOI
TL;DR: In this article, the authors estimate how the Norwegian oil boom starting in the 1970s affected intergenerational mobility and find that individuals born to poor families in oil-affected regions were more likely to move to the top of their cohort's earnings distribution.
Abstract: Do large economic shocks increase intergenerational earnings mobility through creating new economic opportunities? Alternatively, do they reduce mobility by reinforcing the links between generations? In this paper, we estimate how the Norwegian oil boom starting in the 1970s affected intergenerational mobility. We find that this resource shock increased intergenerational mobility for cohorts entering the labor market at the beginning of the oil boom in those labor markets most affected by the growing oil industry. In particular, we show that individuals born to poor families in oil-affected regions were more likely to move to the top of their cohort's earnings distribution. Importantly, we reveal that preexisting local differences in intergenerational mobility did not drive these findings. Instead, we show that changes in the returns to education offer the best explanation for geographic differences in intergenerational mobility following the oil boom. In addition, we find that intergenerational mobility was significantly higher in oil-affected labor markets across three generations and that the oil boom broke the earnings link between grandfathers and their grandsons.

Journal ArticleDOI
TL;DR: In this paper, the authors studied the impact of the extension of compulsory schooling in Turkey from 5 to 8 years on the marriage and fertility behavior of teenage women in Turkey using the 2008 Turkish Demographic and Health Survey and found that the new education policy reduced the probability of marriage and giving birth for teenage women substantially.
Abstract: This paper estimates the impact of the extension of compulsory schooling in Turkey from 5 to 8 years on the marriage and fertility behavior of teenage women in Turkey using the 2008 Turkish Demographic and Health Survey. We find that the new education policy reduces the probability of marriage and giving birth for teenage women substantially: the probability of marriage by age 16 is reduced by 44 percent and the probability of giving birth by age 17 falls by 36 percent. The effects of the education policy on the time until marriage and first-birth persist beyond the completion of compulsory schooling. In addition, we find that the delay in the time until first-birth is driven by the delay in the time until marriage. After a woman is married, the rise in compulsory schooling years does not have an effect on the duration until her first-birth. Finally, we find that the education policy was more effective in reducing early marriage than a change in the Civil Code aimed for this purpose.

Journal ArticleDOI
TL;DR: In this paper, the causal effect of legal status on the employment outcomes of undocumented immigrants is estimated, and the identification strategy exploits a natural experiment provided by the United States Citizenship and Immigration Services.
Abstract: This article estimates the causal effect of the prospect of legal status on the employment outcomes of undocumented immigrants. The identification strategy exploits a natural experiment provided by...

Posted Content
TL;DR: The authors showed that almost 25% of claims of marginally significant results in IV papers are misleading and that selective publication and p-hacking is a substantial problem in research employing DID and (in particular) IV.
Abstract: The economics 'credibility revolution' has promoted the identification of causal relationships using difference-in-differences (DID), instrumental variables (IV), randomized control trials (RCT) and regression discontinuity design (RDD) methods. The extent to which a reader should trust claims about the statistical significance of results proves very sensitive to method. Applying multiple methods to 13,440 hypothesis tests reported in 25 top economics journals in 2015, we show that selective publication and p-hacking is a substantial problem in research employing DID and (in particular) IV. RCT and RDD are much less problematic. Almost 25% of claims of marginally significant results in IV papers are misleading.

Journal ArticleDOI
08 Nov 2018-PLOS ONE
TL;DR: An estimate of the effect of refugees’ length of waiting time in the Danish asylum system on their subsequent employment using administrative data is provided and it is found that an additional year of waitingTime decreases subsequent employment by 3.2 percentage points on average.
Abstract: We provide an estimate of the effect of refugees' length of waiting time in the Danish asylum system on their subsequent employment using administrative data. In contrast to previous studies, we take into account that refugees' labor market integration is delayed since their labor market access is restricted during the asylum-seeking phase. We find that an additional year of waiting time decreases subsequent employment by 3.2 percentage points on average. This effect is mostly driven by the delay in the labor market engagement among refugees. Waiting time may have an effect on subsequent employment that is additional to the delay effect, and this could be either positive or negative depending on the nature of the conditions under which asylum seekers live while waiting for their cases to be processed. We find that this additional effect is positive and statistically significant until observable individual characteristics are included, at which point it becomes small in magnitude and no longer significant.

Journal ArticleDOI
TL;DR: The authors used a difference-in-differences model to show that non-participants in the experiment regions find jobs more slowly after the introduction of the program than workers and found that nonparticipants found jobs more quickly after the program.
Abstract: Identifying policy-relevant treatment effects from randomized experiments requires the absence of spillovers between participants and nonparticipants (SUTVA) or variation in observed treatment levels. We find that SUTVA is violated for a Danish activation program for unemployed workers. Using a difference-in-differences model, we show that nonparticipants in the experiment regions find jobs more slowly after the introduction of the program than workers.

Journal ArticleDOI
TL;DR: The authors exploit rules of class formation to identify the causal effect of increasing the number of immigrants in a classroom on natives' test scores, keeping class size and quality of the two types of immigrants unchanged.
Abstract: We exploit rules of class formation to identify the causal effect of increasing the number of immigrants in a classroom on natives’ test scores, keeping class size and quality of the two types of s...

Journal ArticleDOI
TL;DR: In this article, the authors developed an information theory-based framework about cross-border acquisitions in the financial intermediation industry and showed that the relationship between the amount of customer information embedded in an incumbent bank and the likelihood of its acquisition by a multinational bank is modified by the institutional distance between the home and host countries of the MNB.

Journal ArticleDOI
TL;DR: For example, this paper found that the enforcement of medical marijuana laws is associated with a 2 to 3 percent reduction in hourly earnings for young adult males and that the effect is particularly pronounced when examining MMLs that include a collective cultivation provision.
Abstract: A number of recent studies have found that medical marijuana laws (MMLs) are associated with increased marijuana use among adults, in part due to spillover effects into the recreational market. This study is the first to explore the labor market consequences of MMLs. Using repeated cross-sections of the Current Population Survey from January 1990 to December 2014, we find that the enforcement of MMLs is associated with a 2 to 3 percent reduction in hourly earnings for young adult males. The effect is particularly pronounced when examining MMLs that include a collective cultivation provision. For women and older males, there is little evidence of adverse labor market effects of MMLs. We conclude that the health effects of MMLs may adversely affect labor market productivity of young males.

Journal ArticleDOI
TL;DR: In this paper, the effect of workplace unionization and product market volatility on firms' propensity to use temporary employment was investigated using Italian firm-level data, and it was shown that temporary employment is correlated with worker unionization.
Abstract: This article investigates the effect of workplace unionization and product market volatility on firms’ propensity to use temporary employment. Using Italian firm-level data, the authors show that v...

Journal ArticleDOI
TL;DR: In this article, the authors exploit a regression kink design to estimate the elasticity of the duration of health absence with respect to replacement rate, and find a statistically significant statistically significant increase in elasticity in the order of one.
Abstract: We exploit a regression kink design to estimate the elasticity of the duration of sickness absence with respect to replacement rate. Elasticity is a central parameter in defining the optimal social insurance scheme compensating for lost earnings due to sickness. We use comprehensive administrative data and a kink in the policy rule near the median earnings. We find a statistically significant estimate of the elasticity of the order of one.