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.

Workplace Training in Europe

Abstract: This paper reviews the existing evidence on workplace training in Europe in different data sources - the CVTS, OECD data and the European Community Household Panel. We outline the differences in training incidence and relate these differences to the private costs and benefits of training, and to institutional factors such as unions, employment protection and product market competition. We ask whether there is a case for under-provision of training in Europe and examine alternative policies aiming both at raising training incidence and at reducing inequalities in the provision of skills.

Broken Windows: New Evidence from New York City and a Five-City Social Experiment

Abstract: In 1982, James Q. Wilson and George Kelling suggested in an influential article in the Atlantic Monthly that targeting minor disorder could help reduce more serious crime. More than 20 years later, the three most populous cities in the U.S. - New York, Chicago and, most recently, Los Angeles - have all adopted at least some aspect of Wilson and Kelling's theory, primarily through more aggressive enforcement of minor misdemeanor laws. Remarkably little, though, is currently known about the effect of broken windows policing on crime. According to a recent National Research Council report, existing research does not provide strong support for the broken windows hypothesis - with the possible exception of a 2001 study of crime trends in New York City by George Kelling and William Sousa. In this paper, we re-examine the Kelling and Sousa 2001 study and independently analyze the crime data from New York City for the period 1989-98. In addition, we present results from an important social experiment known as Moving to Opportunity (MTO) underway in five cities, including New York, Chicago and Los Angeles as well as Baltimore and Boston, which provides what is arguably the first truly rigorous test of the broken windows hypothesis. Under this program, approximately 4,800 low-income families living in high-crime public housing communities characterized by high rates of social disorder were randomly assigned housing vouchers to move to less disadvantaged and disorderly communities. The MTO program thus provides the ideal test of the broken windows theory. Taken together, the evidence from New York City and from the five-city social experiment provides no support for a simple first-order disorder-crime relationship as hypothesized by Wilson and Kelling, nor that broken windows policing is the optimal use of scarce law enforcement resources.

Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries

Abstract: As in the U.S. and Canada, migration is a controversial issue in Europe. This paper explores the possibility that immigration policy may affect the labor market assimilation of immigrants and hence natives' sentiments towards immigrants. It first reviews the assimilation literature in economics and the policy approaches taken in Europe and among the traditional immigration countries. Second, a new analysis of individual data from the OECD countries studies sentiments concerning immigration and the determinants of these sentiments is presented. Natives in countries that receive predominantly refugee migrants are relatively more concerned with immigrations impact on social issues such as crime than on the employment effects. Natives in countries with mostly economic migrants are relatively more concerned about loosing jobs to immigrants. However, the results also suggest that natives may view immigration more favorably if immigrants are selected according to the needs of the labor markets. Possible benefits of such a policy are that it may moderate social tensions in regards to migration and contribute to a better economic performance of the respective countries.

Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry

Abstract: Are product market and entry regulation key sources of low employment growth in many European countries? We investigate this question in the context of the French retail industry. Since 1974, approval by regional zoning boards has been required for the creation or extension of any large retail store in France. We exploit a unique database that provides time and region specific variation in boards' approval decisions. We show that stronger deterrence of entry by the boards, and the increase in large retail chains' concentration it induced, slowed down employment growth in France.

Do Population Control Policies Induce More Human Capital Investment? Twins, Birthweight, and China's 'One Child' Policy

Abstract: In this paper we use a new data set describing households with and without twin children in China to quantify the trade-off between the quality and quantity of children using the incidence of twins that for the first time takes into account effects associated with the lower birthweight and closer-spacing of twins compared to singleton births. We show that examining the effects of twinning by birth order, net of the effects stemming from the birthweight deficit of twins, can provide upper and lower bounds on the trade-off between family size and average child quality. Our estimates indicate that, at least in one area of China, an extra child at parity one or at parity two, net of birthweight effects, significantly decreases the schooling progress, the expected college enrollment, grades in school and the assessed health of all children in the family. We also show that estimates of the effects of twinning at higher parities on the outcomes of older children in prior studies do not identify family size effects but are confounded by inter-child allocation effects because of the birthweight deficit of twins. Despite the evident significant trade-off between number of children and child quality in China, however, the findings suggest that the contribution of the one-child policy in China to the development of its human capital was modest.