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Institution

Institute for the Study of Labor

NonprofitBonn, Germany
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.
Topics: Wage, Unemployment, Earnings, Population, Productivity


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Posted Content
TL;DR: The authors analyzed data from Project STAR, an experiment in which 11,600 Tennessee kindergarten students and teachers were randomly assigned to one of three types of classes beginning in the 1985-86 school year: small classes (13-17 students), regular-size classes (22-25 students), and teacher's aide.
Abstract: This paper analyzes data from Project STAR, an experiment in which 11,600 Tennessee kindergarten students and teachers were randomly assigned to one of three types of classes beginning in the 1985-86 school year: small classes (13-17 students), regular-size classes (22-25 students) teacher's aide. According to the original design, students were to remain in their initial class type through the third grade. In practice, however, students in regular-size classes were randomly re-assigned at the end of kindergarten, and about 10 percent of students moved between class types in second and third grade. Attrition was also common. Several statistical methods are used to investigate the impact of these limitations. The main conclusions are: (1) on average, performance on standardized tests increases by about 4 percentile points the first year students are assigned to a small class, irrespective of the grade in which the student first attends a small class; (2) after initial assignment to a small class, student performance increases by about one percentile point per year relative to those in regular-size classes; (3) teacher aides have little effect on student achievement; (4) class size has a larger effect on test scores for minority students and for those on free lunch; (5) the beneficial effect of smaller classes does not appear to result from Hawthorne effects.

300 citations

Posted Content
TL;DR: There is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wage, but the oft-stated assertion that recent research fails to support the traditional view that the minimum Wage reduces the employment of low- Wage workers is clearly incorrect.
Abstract: We review the burgeoning literature on the employment effects of minimum wages - in the United States and other countries - that was spurred by the new minimum wage research beginning in the early 1990s. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wage. However, the oft-stated assertion that recent research fails to support the traditional view that the minimum wage reduces the employment of low-wage workers is clearly incorrect. A sizable majority of the studies surveyed in this monograph give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects, both for the United States as well as for many other countries. Two other important conclusions emerge from our review. First, we see very few - if any - studies that provide convincing evidence of positive employment effects of minimum wages, especially from those studies that focus on the broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups.

300 citations

BookDOI
TL;DR: For example, Maloney et al. as discussed by the authors used panel employment data from Colombia, where minimum wages seem high and binding, to quantify the minimum wage's effects on wages and on the probability of becoming unemployed.
Abstract: Simple numerical measures of the minimum wage may offer deceptive indications of its impact. Alternative measures, such as kernel density or cumulative distribution plots, are more reliable, and highlight influences higher in the wage distribution or on the informal sector. Panel employment data from Colombia - where minimum wages seem high and binding - show that the minimum wage can have important impacts on wages and unemployment across the wage distribution. Maloney, Nunez, and colleagues provide an overview of minimum wage levels in Latin America and their true impact on the distribution of wages, using both numerical measures and kernel density plots for eight countries (Argentina, Bolivia, Brazil, Chile, Colombia, Honduras, Mexico, and Uruguay). They especially try to identify "numeraire" effects - where the minimum is used as a reference higher in the wage distribution - and "lighthouse" effects - where it influences wage setting in the unregulated or "informal" sector. Their main findings: First, statutory minimum wages are often misleading, and graphical methods may be more reliable. Second, the minimum wage's effect on wage setting extends far beyond what is usually considered and probably beyond the effect in industrial countries. Using panel employment data from Colombia, where minimum wages seem high and binding, the authors quantify the minimum wage's effects on wages and on the probability of becoming unemployed. The Colombian case confirms the evidence offered by kernel density estimates: The minimum wage can have an important impact on wage distribution in the neighborhood of the minimum wage. The effects echo up the wage distribution in a clear demonstration of the "numeraire" effect. That this effect is stronger in Latin America than in the United States suggests that the minimum wage induces further-reaching rigidities in the labor market. The tradeoff between any possible effect on poverty and reduced flexibility is likely to be more severe in countries where this is the case. The effects on employment, and unemployment, are substantial. Informal salaried wages are also affected, confirming the graphical evidence of strong lighthouse effects. Self-employment earnings are not, however, confirming that the minimum wage is not simply serving as a measure of inflationary expectations. This paper - a product of the Poverty Sector Unit and the Office of the Chief Economist, Latin America and the Caribbean Region - is part of a larger effort in the region to measure and understand the impact of labor market rigidities on employment and poverty.

298 citations

Journal ArticleDOI
TL;DR: Wang et al. as discussed by the authors found that many of the determinants of life satisfaction in urban China appear comparable to those for people in other countries, such as, inter alia, unemployment, income, marriage, sex, health and age.

297 citations

Posted Content
TL;DR: This paper explored the theoretical issues and the empirical literature regarding the selectivity of migrants for labor market success and found that the favorable selectivity is more intense the greater the out-of-pocket (direct) costs of migration and return migration, and the smaller the relative skill differentials in the lower-wage origin relative to the higher-wage destination.
Abstract: This paper explores the theoretical issues and the empirical literature regarding the selectivity of migrants. Although the primary focus is on international migration, reference is made to internal migration and return migration. The theoretical analysis indicates a tendency toward the favorable self-selection (supply) of migrants for labor market success. The favorable selectivity is more intense the greater the out-of-pocket (direct) costs of migration and return migration, the greater the effect of the higher level of ability on lowering the costs of migration, and the smaller the relative skill differentials in the lower-wage origin relative to the higher-wage destination. Favorable selectivity for labor market success can be expected to be less intense for non-economic migrants, such as refugees, tied movers and ideological migrants, and for sojourners (short-term migrants) and illegal aliens. Among countries for whom entry restrictions are binding, the criteria for rationing immigration visas (demand) will influence the favorable selectivity of those who actually immigrate. Selection criteria can ration visas on one or more characteristics that enhance labor market earnings (e.g., education), or on characteristics that are seemingly independent of skill level (e.g., kinship ties). Under either criteria there will be a tendency for immigrants to be favorably selected, although this is less intense under the later criteria. The overall favorable selectivity of immigrants, therefore, depends on the favorable selectivity of the supply of immigrants and the criteria used to ration admissions.

297 citations


Authors

Showing all 2136 results

NameH-indexPapersCitations
Michael Marmot1931147170338
James J. Heckman175766156816
Anders Björklund16576984268
Jean Tirole134439103279
Ernst Fehr131486108454
Matthew Jones125116196909
Alan B. Krueger11740275442
Eric A. Hanushek10944959705
David Card10743355797
M. Hashem Pesaran10236188826
Richard B. Freeman10086046932
Richard Blundell9348761730
John Haltiwanger9139338803
John A. List9158336962
Joshua D. Angrist8930459505
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Performance
Metrics
No. of papers from the Institution in previous years
YearPapers
202332
202283
2021146
2020259
2019191
2018229