Institute for the Study of Labor

About: Institute for the Study of Labor is a nonprofit organization based out in Bonn, Germany. It is known for research contribution in the topics: Wage & Unemployment. The organization has 2039 authors who have published 13475 publications receiving 439376 citations.

Women on the move: the neglected gender dimension of the brain drain

Abstract: Two trends in international migration flows have attracted much attention recently: (i) the growing feminisation of migration flows; and (ii) the increasing selectivity of migration towards the highly skilled, which in turn has given rise to renewed concerns about the "brain drain" consequences for the sending countries. The two issues have not been considered jointly, however, mainly due to the lack of relevant data. This paper addresses this shortcoming by looking at the gender dimension of the brain drain, based on a new comparable data set that has been collected by the OECD and which allows us to identify people by country of residence, place of birth, gender and level of education. The evidence summarized in this paper shows that female migration to OECD countries has been increasing significantly in recent decades, so that migrant stocks are now more or less gender-balanced. A more surprising result is that this is also true for the highly skilled. Taking into account the fact that women still face an unequal access to tertiary education in many less developed countries, it appears that women are over-represented in the brain drain. This result is reinforced by econometric estimates showing that emigration of highly skilled women is higher, the poorer is their country of origin. This effect is also observed for men but to a lesser extent. It is not observed, however, at lower educational levels, where the traditional migration hump is identifiable. Econometric estimates also report a negative impact of emigration of highly skilled women on three key education and health indicators: infant mortality, under-5 mortality and secondary school enrolment rate by gender. These results raise concerns about a potentially significant negative impact of the female brain drain on the poorest countries.

The Mismatch between Employement and Child Care in Italy: The Impact of Rationing

Abstract: In Italy the participation of women has not increased very much in the last few decades relative to other developed countries and it is still among the lowest in Europe. The female employment rate stands almost 13 percent age points below the EU average and 22 below the Lisbon target. One of the most important reasons is related to the characteristics of child care system. In this paper we analyze the characteristics of the child care system in Italy and its relationship to the labor market participation decision of mothers. We present a simple discrete choice framework in which the two decisions can be jointly considered, which also allows for simple forms of rationing. We go on to estimate a bivariate probit model of the child care and employment decisions and interpret the results within the framework of our model. We find evidence that rationing is an important factor in interpreting price effects on utilization rates and employment decisions.

Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round

Abstract: We discuss liberalising the temporary mobility of workers under Mode 4 of the GATS, particularly the movement of medium and low skilled service providers between developing and developed countries. Such mobility potentially offers huge returns: a flow equivalent to three per cent of developed countries' skilled and unskilled work forces would generate an estimated increase in world welfare of over US $150 billion, shared fairly equally between developing and developed countries. The larger part of this emanates from the less-skilled, essentially because losing higher-skilled workers cuts output in developing countries severely. The mass migration of less skilled workers raises fears in developed countries for cultural identity, problems of assimilation and the drain on the public purse. These fears are hardly relevant to temporary movement, however. The biggest economic concern from temporary mobility is its competitive challenge to local less skilled workers. But as populations age and the average levels of training and education rise, developed countries will face an increasing scarcity of less skilled labour. Temporary mobility thus actually offers a strong communality of interest between developing and developed countries. The remainder of the paper looks at the GATS provisions on Mode 4 and the commitments that have been made under it. The paper reviews several official proposals for the Doha talks, including the very detailed one from India, and considers several countries' existing schemes for the temporary movement of foreign workers. Many countries have long had bilateral foreign worker programs, and some regional agreements provide for liberal and flexible movement. These show what is feasible and how concerns can be overcome. We caution that, to be useful, any WTO agreement must increase mobility, not just bureaucratise it. The paper concludes with some modest and practical proposals. We suggest, inter alia, that licensing firms to arrange the movement of labour is the most promising short-term approach to increasing temporary mobility.

Models of Arbitrator Behavior: Theory and Evidence

Abstract: This paper analyzes and compares arbitrator behavior under conventional and final-offer arbitration. Simple models of arbitrator behavior are developed under each of these alternative mechanisms. These models are estimated and tested using data on the outcomes of both forms of arbitrationin New Jersey, a state in which arbitration is mandatory for unresolved pay disputes involving police officer unions and public employers. The major findings are (1) that the high proportion of union victories under final-offer arbitration were generated by a set of impartial arbitrators applying the same standards used in conventional arbitration, and (2) that union bargainers appear to be considerably more risk averse than employer bargainers, with the wage increases under final-offer arbitration having a lower mean and a lower variance than under conventional arbitration.