The underrepresentation of women in leadership roles has motivated the creation of mentoring programs and microenvironments in universities. Still, evidence on the causal effect of learning environments on managerial careers is limited. By applying a rigorous quasi-experimental method, we estimate the effect of class composition in college on women's job promotion nearly ten years after they enter it. Our data combine administrative records from a flagship university in Brazil and employment register. In most programs, this university splits first-year students into two groups based on admission scores. In a regression discontinuity design, we compare the last student who joins the high-score group (the "first class") and the first student left out, who joins the "second class." Results show that the first-class student faces higher relative disadvantage early in the classroom and is less likely to attain a management position right after graduation. We provide suggestive evidence that the low rank in the first class outweighs the benefits of having better peers. While the effect is persistent for women, low-rank men tend to close the managerial gap with their counterparts in the long-run. This gender difference is not explained by professional experience, maternity, or lack of grit. Our findings are consistent with the behavioral evidence that relative ranks affect students' self-concept and reactions to momentary setbacks vary by gender.
{"title":"Do Relative Disadvantages in College Hinder Female Leadership?","authors":"Rafael P. Ribas, B. Sampaio, Giuseppe Trevisan","doi":"10.2139/ssrn.3547450","DOIUrl":"https://doi.org/10.2139/ssrn.3547450","url":null,"abstract":"The underrepresentation of women in leadership roles has motivated the creation of mentoring programs and microenvironments in universities. Still, evidence on the causal effect of learning environments on managerial careers is limited. By applying a rigorous quasi-experimental method, we estimate the effect of class composition in college on women's job promotion nearly ten years after they enter it. Our data combine administrative records from a flagship university in Brazil and employment register. In most programs, this university splits first-year students into two groups based on admission scores. In a regression discontinuity design, we compare the last student who joins the high-score group (the \"first class\") and the first student left out, who joins the \"second class.\" Results show that the first-class student faces higher relative disadvantage early in the classroom and is less likely to attain a management position right after graduation. We provide suggestive evidence that the low rank in the first class outweighs the benefits of having better peers. While the effect is persistent for women, low-rank men tend to close the managerial gap with their counterparts in the long-run. This gender difference is not explained by professional experience, maternity, or lack of grit. Our findings are consistent with the behavioral evidence that relative ranks affect students' self-concept and reactions to momentary setbacks vary by gender.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130457904","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-03DOI: 10.32721/ctj.2021.69.2.pf.freedman
J. Freedman
The COVID-19 pandemic has strained tax and social security systems. Cracks that have existed for some time have been opened up further and are unlikely to close without structural repair. New insights into the shifting nature of work, combined with the development of technologies that can provide modern, practical solutions to old problems, offer the opportunity to rethink the way we tax gig workers and other non-standard providers of labour. This article argues that we need to free ourselves from the employment status classifications developed in other areas of law, for other purposes, when we consider the design of tax and social security provisions. We should aim to harmonize the tax and social security treatment of all those who provide labour as far as is practically possible in order to increase equity and remove distortions. Where that cannot be achieved, despite the benefits of new technologies, dividing lines should be dictated by tax and benefits policy objectives rather than linkages to case law that has evolved in other areas.
{"title":"Policy Forum: Tax, Social Security, and Employment Status - Removing the Distortions in the United Kingdom","authors":"J. Freedman","doi":"10.32721/ctj.2021.69.2.pf.freedman","DOIUrl":"https://doi.org/10.32721/ctj.2021.69.2.pf.freedman","url":null,"abstract":"The COVID-19 pandemic has strained tax and social security systems. Cracks that have existed for some time have been opened up further and are unlikely to close without structural repair. New insights into the shifting nature of work, combined with the development of technologies that can provide modern, practical solutions to old problems, offer the opportunity to rethink the way we tax gig workers and other non-standard providers of labour. This article argues that we need to free ourselves from the employment status classifications developed in other areas of law, for other purposes, when we consider the design of tax and social security provisions. We should aim to harmonize the tax and social security treatment of all those who provide labour as far as is practically possible in order to increase equity and remove distortions. Where that cannot be achieved, despite the benefits of new technologies, dividing lines should be dictated by tax and benefits policy objectives rather than linkages to case law that has evolved in other areas.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129141455","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I study the effect of noncompete agreements on low-earning workers using a noncompete ban in Austria. The ban increased treated workers’ annual job-to-job transition rate by 0.3 percentage points (a two percent increase). This effect was driven by within-industry job transitions. The reform also disproportionately increased transitions to higher-quality firms and transitions accompanied by earnings gains. However, I do not find that the ban increased treated workers' overall earnings growth rates. This evidence shows that noncompetes in Austria restricted low-earning workers’ job mobility but that their impact was not large enough to affect overall mobility or earnings trends.
{"title":"Noncompete Clauses, Job Mobility, and Job Quality: Evidence from a Low-Earning Noncompete Ban in Austria","authors":"Samuel G. Young","doi":"10.2139/ssrn.3811459","DOIUrl":"https://doi.org/10.2139/ssrn.3811459","url":null,"abstract":"I study the effect of noncompete agreements on low-earning workers using a noncompete ban in Austria. The ban increased treated workers’ annual job-to-job transition rate by 0.3 percentage points (a two percent increase). This effect was driven by within-industry job transitions. The reform also disproportionately increased transitions to higher-quality firms and transitions accompanied by earnings gains. However, I do not find that the ban increased treated workers' overall earnings growth rates. This evidence shows that noncompetes in Austria restricted low-earning workers’ job mobility but that their impact was not large enough to affect overall mobility or earnings trends.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"438 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114582623","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Xavier Giroud, Simone Lenzu, Quinn Maingi, Holger M. Mueller
This paper shows that local productivity spillovers propagate throughout the economy through the plant-level networks of multi-region firms. Using confidential Census plant-level data, we show that large manufacturing plant openings not only raise the productivity of local plants but also of distant plants hundreds of miles away, which belong to multi-region firms that are exposed to the local productivity spillover through one of their plants. To quantify the significance of plant-level networks for the propagation and amplification of local productivity shocks, we develop and estimate a quantitative spatial model in which plants of multi-region firms are linked through shared knowledge. Our model features heterogeneous regions, which interact through goods trade and labor markets, as well as within-location, across-plant heterogeneity in productivity, wages, and employment. Counterfactual exercises show that while knowledge sharing through plant-level networks amplifies the aggregate effects of local productivity shocks, it widens economic disparities between individual workers and regions in the economy.
{"title":"Propagation and Amplification of Local Productivity Spillovers","authors":"Xavier Giroud, Simone Lenzu, Quinn Maingi, Holger M. Mueller","doi":"10.2139/ssrn.3892413","DOIUrl":"https://doi.org/10.2139/ssrn.3892413","url":null,"abstract":"This paper shows that local productivity spillovers propagate throughout the economy through the plant-level networks of multi-region firms. Using confidential Census plant-level data, we show that large manufacturing plant openings not only raise the productivity of local plants but also of distant plants hundreds of miles away, which belong to multi-region firms that are exposed to the local productivity spillover through one of their plants. To quantify the significance of plant-level networks for the propagation and amplification of local productivity shocks, we develop and estimate a quantitative spatial model in which plants of multi-region firms are linked through shared knowledge. Our model features heterogeneous regions, which interact through goods trade and labor markets, as well as within-location, across-plant heterogeneity in productivity, wages, and employment. Counterfactual exercises show that while knowledge sharing through plant-level networks amplifies the aggregate effects of local productivity shocks, it widens economic disparities between individual workers and regions in the economy.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"154 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121256198","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We present a theory in which the interaction between limited sharing of idiosyncratic labor income risk and labor adjustment costs (that endogenously arise through search frictions) determines interest rate dynamics. In the general equilibrium, the interaction of these two ingredients relates bond risk premia, cross-sectional skewness of income growth, and labor market tightness. Our model rationalizes an upward sloping average yield curve and makes two predictions: (1) a flatter real yield curve in economies with lower job-finding rates, and (2) a negative relation between labor market tightness and bond risk premia. We provide evidence for our theory's mechanism and predictions.
{"title":"A Theory of the Term Structure of Interest Rates under Limited Household Risk Sharing","authors":"Indrajit Mitra, Yu Xu","doi":"10.2139/ssrn.3324765","DOIUrl":"https://doi.org/10.2139/ssrn.3324765","url":null,"abstract":"We present a theory in which the interaction between limited sharing of idiosyncratic labor income risk and labor adjustment costs (that endogenously arise through search frictions) determines interest rate dynamics. In the general equilibrium, the interaction of these two ingredients relates bond risk premia, cross-sectional skewness of income growth, and labor market tightness. Our model rationalizes an upward sloping average yield curve and makes two predictions: (1) a flatter real yield curve in economies with lower job-finding rates, and (2) a negative relation between labor market tightness and bond risk premia. We provide evidence for our theory's mechanism and predictions.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116861081","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper attempts to offer an empirical assessment of the main macroeconomic and institutional driver of income inequality in Africa. We use a Kuznets curve framework, which emphasises the role of income per capita in explaining the time path of inequality. In contrast to much of the literature, we explicitly examine the possibility of the existence of multiple income steady states. Using the concept of clubs of convergence, we show that per capita income is divergent and identify four steady states to which groups of economies converge (i.e. high income to low income economies) Using panel data models and a data set encompassing 52 African countries spanning the years 1980-2017, we show that once these multiple steady states are accounted for, the Kuznets’ curve relationship becomes unstable. Our findings suggest that inequality may be increasing in high income countries in Africa, while decreasing in low income or the least developed economies. In addition, the role of macroeconomic and institutional factors in explaining income inequality is limited and differ across convergence clubs. For example, evidence suggest the importance of fiscal, employment and monetary policies and the rule of law to tackle inequality in high income economies, while have no statistically significant role in low income economies’ income inequality.
{"title":"The Macroeconomic and Institutional Effects on Income Inequality in Africa","authors":"Michael Enowbi Batuo, G. Kararach, Issam Malki","doi":"10.2139/ssrn.3855517","DOIUrl":"https://doi.org/10.2139/ssrn.3855517","url":null,"abstract":"<br>This paper attempts to offer an empirical assessment of the main macroeconomic and institutional driver of income inequality in Africa. We use a Kuznets curve framework, which emphasises the role of income per capita in explaining the time path of inequality. In contrast to much of the literature, we explicitly examine the possibility of the existence of multiple income steady states. Using the concept of clubs of convergence, we show that per capita income is divergent and identify four steady states to which groups of economies converge (i.e. high income to low income economies) Using panel data models and a data set encompassing 52 African countries spanning the years 1980-2017, we show that once these multiple steady states are accounted for, the Kuznets’ curve relationship becomes unstable. Our findings suggest that inequality may be increasing in high income countries in Africa, while decreasing in low income or the least developed economies. In addition, the role of macroeconomic and institutional factors in explaining income inequality is limited and differ across convergence clubs. For example, evidence suggest the importance of fiscal, employment and monetary policies and the rule of law to tackle inequality in high income economies, while have no statistically significant role in low income economies’ income inequality.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116625633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper studies the real effects of foreign real estate capital inflows. Using transaction-level data, we document (i) a “China shock” in the U.S. housing market characterized by surging foreign Chinese housing purchases after 2008, and (ii) “home bias” in these purchases, as they concentrate in neighborhoods historically populated by ethnic Chinese. Exploiting their temporal and spatial variation, we find that these capital inflows raise local employment, with the effect transmitted through a housing net worth channel. However, they displace local lower-income residents. Our results show that real estate capital inflows can both stimulate the real economy and induce gentrification.
{"title":"Local Effects of Global Capital Flows: A China Shock in the U.S. Housing Market","authors":"Zhimin Li, Leslie Sheng Shen, Calvin Zhang","doi":"10.2139/ssrn.3795914","DOIUrl":"https://doi.org/10.2139/ssrn.3795914","url":null,"abstract":"\u0000 This paper studies the real effects of foreign real estate capital inflows. Using transaction-level data, we document (i) a “China shock” in the U.S. housing market characterized by surging foreign Chinese housing purchases after 2008, and (ii) “home bias” in these purchases, as they concentrate in neighborhoods historically populated by ethnic Chinese. Exploiting their temporal and spatial variation, we find that these capital inflows raise local employment, with the effect transmitted through a housing net worth channel. However, they displace local lower-income residents. Our results show that real estate capital inflows can both stimulate the real economy and induce gentrification.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124093438","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Applying the Impact-Weighted Accounts Initiative’s employment impact methodology, on eight leading companies, we document wide variability in employment impacts as a percentage of salaries paid, ranging between 59 and 80 percent. We identify opportunities for improvement and discuss transition plans for companies to create more positive employment impact. We conclude with a call for disclosure of Equal Employment Opportunity Commission EEO-1 reports, paid leave, childcare and healthcare benefits, which would greatly facilitate the comparable and reliable measurement of employment impact in the future.
{"title":"Measuring Employment Impact: Applications and Cases","authors":"Katie Panella, George Serafeim","doi":"10.2139/ssrn.3775838","DOIUrl":"https://doi.org/10.2139/ssrn.3775838","url":null,"abstract":"Applying the Impact-Weighted Accounts Initiative’s employment impact methodology, on eight leading companies, we document wide variability in employment impacts as a percentage of salaries paid, ranging between 59 and 80 percent. We identify opportunities for improvement and discuss transition plans for companies to create more positive employment impact. We conclude with a call for disclosure of Equal Employment Opportunity Commission EEO-1 reports, paid leave, childcare and healthcare benefits, which would greatly facilitate the comparable and reliable measurement of employment impact in the future.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"69 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127266644","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the data, entrepreneurship contributes to the micro and macro-level patterns of gross labor market flows and the selection into that occupation is highly responsive to labor market policy changes. Using an occupational choice model of employment, unemployment, and entrepreneurship, we show that search frictions over all three occupations and a technology letting entrepreneurs produce with their own labor, business capital, or both, are pivotal in rationalizing observed aggregate gross flows and behaviors along the wealth and ability dimensions. The responsiveness of our model flows to variations in unemployment insurance generosity is consistent with US empirical estimates. Changes in the relative riskiness of occupations drive this responsiveness. In turn, beyond the direct effects on unemployment, large reallocations between entrepreneurship and employment appear, shaping aggregate occupational shares. Using our framework, we show that the successive unemployment insurance extensions during the Great Recession have decreased the entrepreneurship rate by 0.4pp.
{"title":"Gross Labor Market Flows and Entrepreneurship","authors":"Alexandre Gaillard, Sumudu Kankanamge","doi":"10.2139/ssrn.3902165","DOIUrl":"https://doi.org/10.2139/ssrn.3902165","url":null,"abstract":"In the data, entrepreneurship contributes to the micro and macro-level patterns of gross labor market flows and the selection into that occupation is highly responsive to labor market policy changes. Using an occupational choice model of employment, unemployment, and entrepreneurship, we show that search frictions over all three occupations and a technology letting entrepreneurs produce with their own labor, business capital, or both, are pivotal in rationalizing observed aggregate gross flows and behaviors along the wealth and ability dimensions. The responsiveness of our model flows to variations in unemployment insurance generosity is consistent with US empirical estimates. Changes in the relative riskiness of occupations drive this responsiveness. In turn, beyond the direct effects on unemployment, large reallocations between entrepreneurship and employment appear, shaping aggregate occupational shares. Using our framework, we show that the successive unemployment insurance extensions during the Great Recession have decreased the entrepreneurship rate by 0.4pp.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116029800","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The existence of involuntary unemployment advocated by J. M. Keynes is a very important problem of the modern economic theory. Using a three-generations overlapping generations model, we show that the existence of involuntary unemployment is due to the instability of the economy. Instability of the economy is the instability of the difference equation about the equilibrium price around the full-employment equilibrium, which means that a fall in the nominal wage rate caused by the presence of involuntary unemployment further reduces employment. This instability is due to the negative real balance effect that occurs when consumers’ net savings (the difference between savings and pensions) are smaller than their debt multiplied by the marginal propensity to consume from childhood consumption.
{"title":"Involuntary Unemployment in Overlapping Generations Model Due to Instability of the Economy and Fiscal Policy","authors":"Yasuhito Tanaka","doi":"10.2139/ssrn.3824219","DOIUrl":"https://doi.org/10.2139/ssrn.3824219","url":null,"abstract":"The existence of involuntary unemployment advocated by J. M. Keynes is a very important problem of the modern economic theory. Using a three-generations overlapping generations model, we show that the existence of involuntary unemployment is due to the instability of the economy. Instability of the economy is the instability of the difference equation about the equilibrium price around the full-employment equilibrium, which means that a fall in the nominal wage rate caused by the presence of involuntary unemployment further reduces employment. This instability is due to the negative real balance effect that occurs when consumers’ net savings (the difference between savings and pensions) are smaller than their debt multiplied by the marginal propensity to consume from childhood consumption.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115518513","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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