Drawing on Holmstrom & Tirole (2011) and Ellul & Pagano (2015) we explore the impact of firm's demand for liquidity on employment decisions. The theory is based on a firm's trade-off between liquid and illiquid investments in labor. Solvency and liquidity concerns may lower a firm's investment in less flexible workers, such as permanent and highly specialized workers. We test the impact of firms' liquidity on employment differentiated by casual and part-time status using Australian firm level data. We find support for the hypothesis that firms' balance sheets impact employment decisions and they do so differently for different types of employment. This is especially true if the firm is small or financially constrained. Macro conditions that lead to widespread financial stress also exhibit a similar impact. Our results suggest a possible role for employment policies that target firms directly besides conventional stimulus.
{"title":"Firms' Demand for Liquidity and Employment Decisions: Evidence from Australia","authors":"Sasan Bakhtiari, L. Magnani","doi":"10.2139/ssrn.3421792","DOIUrl":"https://doi.org/10.2139/ssrn.3421792","url":null,"abstract":"Drawing on Holmstrom & Tirole (2011) and Ellul & Pagano (2015) we explore the impact of firm's demand for liquidity on employment decisions. The theory is based on a firm's trade-off between liquid and illiquid investments in labor. Solvency and liquidity concerns may lower a firm's investment in less flexible workers, such as permanent and highly specialized workers. We test the impact of firms' liquidity on employment differentiated by casual and part-time status using Australian firm level data. We find support for the hypothesis that firms' balance sheets impact employment decisions and they do so differently for different types of employment. This is especially true if the firm is small or financially constrained. Macro conditions that lead to widespread financial stress also exhibit a similar impact. Our results suggest a possible role for employment policies that target firms directly besides conventional stimulus.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131314344","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 United States, both taxes and old age Social Security benefits depend on one's marital status and tend to discourage the labor supply of the secondary earner. To what extent are these provisions holding back female labor supply? We estimate a rich life cycle model of labor supply and savings for couples and singles using the method of simulated moments (MSM) on the 1945 and 1955 birth-year cohorts and use it to evaluate what would happen without these provisions. Our model matches well the life cycle profiles of labor market participation, hours, and savings for married and single people and generates plausible elasticities of labor supply. Eliminating marriage-related provisions drastically increases the participation of married women over their entire life cycle, reduces the participation of married men after age 60, and increases the savings of couples in both cohorts, including the later one, which has similar participation to that of more recent generations. If the resulting government surplus were used to lower income taxation, there would be large welfare gains for the vast majority of the population.
{"title":"Are Marriage-Related Taxes and Social Security Benefits Holding Back Female Labor Supply?","authors":"M. Borella, Mariacristina De Nardi, Fang Yang","doi":"10.3386/W26097","DOIUrl":"https://doi.org/10.3386/W26097","url":null,"abstract":"In the United States, both taxes and old age Social Security benefits depend on one's marital status and tend to discourage the labor supply of the secondary earner. To what extent are these provisions holding back female labor supply? We estimate a rich life cycle model of labor supply and savings for couples and singles using the method of simulated moments (MSM) on the 1945 and 1955 birth-year cohorts and use it to evaluate what would happen without these provisions. Our model matches well the life cycle profiles of labor market participation, hours, and savings for married and single people and generates plausible elasticities of labor supply. Eliminating marriage-related provisions drastically increases the participation of married women over their entire life cycle, reduces the participation of married men after age 60, and increases the savings of couples in both cohorts, including the later one, which has similar participation to that of more recent generations. If the resulting government surplus were used to lower income taxation, there would be large welfare gains for the vast majority of the population.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"21 1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116638248","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}
Contrary to assumptions in the unemployment insurance (UI) literature, this paper argues that unemployed workers do not always lose uncollected UI benefits when they start a new job. Instead, they may postpone the collection of leftover benefits to future unemployment spells. Further, using cross-time and cross-state variations in UI policies, the paper finds empirical evidence that allowing unemployed workers to delay the collection of benefits increases their incentives to find a job during recessions when wages are low, job separation rates are high, and UI benefits are extended. I quantify the effects of the policy of allowing delayed collection of benefits on aggregate unemployment by introducing endogenous search effort, benefit eligibility, and wage indexed benefits into a standard search-and-matching framework. The model demonstrates how the policy increases the future value of employment even though more generous UI benefits in general reduce the net value of employment. Using a calibrated model,I find that allowing delayed benefit collection raises the proportion of unemployed workers receiving benefits and reduces the unemployment rate during 2009–2012.
{"title":"Delayed Collection of Unemployment Insurance in Recessions","authors":"Zoe Xie","doi":"10.29338/wp2019-14","DOIUrl":"https://doi.org/10.29338/wp2019-14","url":null,"abstract":"Contrary to assumptions in the unemployment insurance (UI) literature, this paper argues that unemployed workers do not always lose uncollected UI benefits when they start a new job. Instead, they may postpone the collection of leftover benefits to future unemployment spells. Further, using cross-time and cross-state variations in UI policies, the paper finds empirical evidence that allowing unemployed workers to delay the collection of benefits increases their incentives to find a job during recessions when wages are low, job separation rates are high, and UI benefits are extended. I quantify the effects of the policy of allowing delayed collection of benefits on aggregate unemployment by introducing endogenous search effort, benefit eligibility, and wage indexed benefits into a standard search-and-matching framework. The model demonstrates how the policy increases the future value of employment even though more generous UI benefits in general reduce the net value of employment. Using a calibrated model,I find that allowing delayed benefit collection raises the proportion of unemployed workers receiving benefits and reduces the unemployment rate during 2009–2012.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123917663","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 retraces the evolution of Canadian women's labour force participation and of the gender earnings ratio across the generations to understand better the prospects for gender convergence in pay. Using data from the public use Labour Force Surveys (LFS) and administrative annual earnings data from the Longitudinal Worker Files (LWF), the paper assesses the role of increasing top earnings inequality in the persistence of the gender pay gap. Having identified a growing role for the under-representation of women among top earners, the paper then performs an evaluation and critical analysis of existing gender equality policies, centred on horizontal occupational gender segregation, and discusses alternative policies for the future.
{"title":"Increasing Earnings Inequality and the Gender Pay Gap in Canada: Prospects for Convergence","authors":"N. Fortin","doi":"10.1111/caje.12386","DOIUrl":"https://doi.org/10.1111/caje.12386","url":null,"abstract":"This paper retraces the evolution of Canadian women's labour force participation and of the gender earnings ratio across the generations to understand better the prospects for gender convergence in pay. Using data from the public use Labour Force Surveys (LFS) and administrative annual earnings data from the Longitudinal Worker Files (LWF), the paper assesses the role of increasing top earnings inequality in the persistence of the gender pay gap. Having identified a growing role for the under-representation of women among top earners, the paper then performs an evaluation and critical analysis of existing gender equality policies, centred on horizontal occupational gender segregation, and discusses alternative policies for the future.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116786979","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}
Michael Baker, Yosh Halberstam, Kory Kroft, Alexandre Mas, Derek Messacar
We examine the impact of public sector salary disclosure laws on university faculty salaries in Canada. The laws, which enable public access to the salaries of individual faculty if they exceed specified thresholds, were introduced in different provinces at different times. Using detailed administrative data covering the majority of faculty in Canada, and an event-study research design that exploits within-province variation in exposure to the policy across institutions and academic departments, we find robust evidence that the laws reduced the gender pay gap between men and women by approximately 20–40 percent. (JEL I23, J16, J31, J44, K31)
{"title":"Pay Transparency and the Gender Gap","authors":"Michael Baker, Yosh Halberstam, Kory Kroft, Alexandre Mas, Derek Messacar","doi":"10.3386/W25834","DOIUrl":"https://doi.org/10.3386/W25834","url":null,"abstract":"We examine the impact of public sector salary disclosure laws on university faculty salaries in Canada. The laws, which enable public access to the salaries of individual faculty if they exceed specified thresholds, were introduced in different provinces at different times. Using detailed administrative data covering the majority of faculty in Canada, and an event-study research design that exploits within-province variation in exposure to the policy across institutions and academic departments, we find robust evidence that the laws reduced the gender pay gap between men and women by approximately 20–40 percent. (JEL I23, J16, J31, J44, K31)","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"357 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123547353","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}
Keynes’s revolution in macroeconomic theory is based on his application in the General Theory of his Inexact measurement approach from the A Treatise on Probability. This involves the use of interval valued probability and interval valued outcomes. Keynes called this approach approximation. It entails nonadditive (sub and super) probabilities, imprecise probabilities, indefinite and indeterminate probabilities,to which Keynes added interval valued outcomes in the General Theory. Except in special cases, Keynes rejected both Exact measurement,which involved the use of precise, definite, determinate, additive, linear probabilities, which imply that the decision maker knows an exact probability distribution.
Keynes developed Boole's original logical theory of probability by developing an alternative method of solving Boole’s problems. Like Boole, Keynes’s approach involved solving systems of equations, the constraints, using linear and non linear, mathematical programming techniques. Keynes uses special aggregation assumptions in order to use and present an exact mathematical analysis in his D-Z model of chapter 20, which is the foundation for his IS-LM(LP) model of chapter 21. The D-Z model deals with expectations and uncertainty that results in a specific Y value. That Y value is an actual value that is certain, quantitative, and deterministic. Keynes then combines Y with r, the nominal, long run rate of interest, to derive the IS and LM(LP) curves on pp.298-299 of the General Theory.
The General Theory has, unfortunately, attracted two completely different types of interpreters, both of which conflict directly with Keynes’s use of inexact measurement.
The first type of interpreter essentially follows the views of Hicks(1937), Tinbergen(1940), Modigliani(1944) and Klein(1947), for example, in asserting that Keynes's approach in the General Theory was, in fact, a purely verbal, literary, prose approach, with no mathematical or statistical foundation whatsoever, that needed to be reworked in order to present it in mathematical form.
The second approach follows the Joan Robinson and G LS Shackle nihilist approach in asserting that Keynes argued that no mathematical, technical, analytic or quantitative approaches involving mathematical modeling or equations could ever be possible in macroeconomics because of the existence of what they called unknowledge or fundamental uncertainty, which meant that no decision maker has any knowledge whatsoever of anything that can occur in the future, be it the near future or the distant future, be it one day in the future, one month in the future, one year in the future, five years in the future, ten years in the future, twenty years in the future, etc. The best that could be done was to assume that decision makers could sometimes make use of a weak, ordinal probability approach. Both approaches have no support whatsoever in anything actually written by Keynes in his lifetime. The nihili
凯恩斯在宏观经济理论中的革命是基于他在《概率论》中的不精确测量方法在《通论》中的应用。这涉及到区间值概率和区间值结果的使用。凯恩斯称这种方法为近似。它包含非加性(次和超)概率、不精确概率、不确定和不确定概率，凯恩斯在《通论》中添加了区间值结果。除了在特殊情况下，凯恩斯拒绝了精确测量，这涉及到使用精确的，确定的，确定的，附加的，线性的概率，这意味着决策者知道一个精确的概率分布。凯恩斯通过发展一种解决布尔问题的替代方法，发展了布尔的原始概率逻辑理论。和布尔一样，凯恩斯的方法涉及求解方程组、约束，使用线性和非线性的数学规划技术。凯恩斯使用了特殊的聚合假设，以便在第20章的D-Z模型中使用和呈现精确的数学分析，这是第21章的is - lm (LP)模型的基础。D-Z模型处理导致特定Y值的期望和不确定性。Y值是一个确定的、定量的、确定的实际值。然后，凯恩斯将Y与名义长期利率r结合起来，在《通论》第298-299页推导出IS和LM(LP)曲线。不幸的是，《通论》吸引了两种完全不同类型的解释，这两种解释都与凯恩斯使用不精确测量的观点直接冲突。第一种解释者基本上遵循希克斯(1937)、丁伯根(1940)、莫迪利亚尼(1944)和克莱因(1947)的观点，例如，他们认为凯恩斯在《通论》中的方法实际上是一种纯粹的口头、文学、散文方法，没有任何数学或统计基础，需要重新设计，以便以数学形式呈现。第二种方法遵循琼·罗宾逊和G·LS·沙克尔的虚无主义方法，凯恩斯认为，在宏观经济学中，没有数学的，技术的，分析的或定量的方法涉及数学模型或方程是可能的，因为他们所谓的不知识或基本不确定性的存在，这意味着没有决策者对未来可能发生的任何事情都有任何了解，不管是不久的将来还是遥远的将来，是将来的一天，将来的一个月，将来的一年，将来的五年，将来的十年，将来的二十年，等等。最好的情况是假设决策者有时可以使用弱的顺序概率方法。这两种方法在凯恩斯生前的著作中都没有得到任何支持。凯恩斯原教旨主义者(Moggridge, Skidelsky, Meeks, O 'Donnell, Carabelli, Fitzgibbons, Runde, Davis, Winslow等)的虚无主义方法是基于对《概率论》(a Treatise on Probability)第39页图表的严重误解。一旦这个错误得到纠正，很明显，凯恩斯在研究高低概率的方法中使用了一种涉及非线性和非加性分析的数学方法，而Tinbergen、Modigliani和Klein只是因为不熟悉区间值概率的概念而忽略了这一点。凯恩斯的不精确方法得到了发展，可以在Hailperin(1986)和Walley(1991)的工作中进行研究。没有一个宏观经济学家熟悉这项工作。凯恩斯描述了他的pp.298-299模型在GT使用以下单词或短语的总结:•一个人可以计算一个定量的答案•该模型由三个元素组成a)， b)，和c)•它提供了一个分析，是有价值的引入秩序和方法的查询•它是一组联立方程•它提供了一个确定的答案或结果。•这个结果是一个均衡——凯恩斯在《通论》中描述了他的is - lm (LP)模型。
{"title":"J.M. Keynes’s Revolution in the General Theory in Macroeconomics is Based on a Foundation of His Inexact Measurement Approach in Parts II and V of the a Treatise on Probability","authors":"M. E. Brady","doi":"10.2139/ssrn.3371740","DOIUrl":"https://doi.org/10.2139/ssrn.3371740","url":null,"abstract":"Keynes’s revolution in macroeconomic theory is based on his application in the General Theory of his Inexact measurement approach from the A Treatise on Probability. This involves the use of interval valued probability and interval valued outcomes. Keynes called this approach approximation. It entails nonadditive (sub and super) probabilities, imprecise probabilities, indefinite and indeterminate probabilities,to which Keynes added interval valued outcomes in the General Theory. Except in special cases, Keynes rejected both Exact measurement,which involved the use of precise, definite, determinate, additive, linear probabilities, which imply that the decision maker knows an exact probability distribution.<br><br>Keynes developed Boole's original logical theory of probability by developing an alternative method of solving Boole’s problems. Like Boole, Keynes’s approach involved solving systems of equations, the constraints, using linear and non linear, mathematical programming techniques. Keynes uses special aggregation assumptions in order to use and present an exact mathematical analysis in his D-Z model of chapter 20, which is the foundation for his IS-LM(LP) model of chapter 21. The D-Z model deals with expectations and uncertainty that results in a specific Y value. That Y value is an actual value that is certain, quantitative, and deterministic. Keynes then combines Y with r, the nominal, long run rate of interest, to derive the IS and LM(LP) curves on pp.298-299 of the General Theory.<br><br>The General Theory has, unfortunately, attracted two completely different types of interpreters, both of which conflict directly with Keynes’s use of inexact measurement. <br><br>The first type of interpreter essentially follows the views of Hicks(1937), Tinbergen(1940), Modigliani(1944) and Klein(1947), for example, in asserting that Keynes's approach in the General Theory was, in fact, a purely verbal, literary, prose approach, with no mathematical or statistical foundation whatsoever, that needed to be reworked in order to present it in mathematical form. <br><br>The second approach follows the Joan Robinson and G LS Shackle nihilist approach in asserting that Keynes argued that no mathematical, technical, analytic or quantitative approaches involving mathematical modeling or equations could ever be possible in macroeconomics because of the existence of what they called unknowledge or fundamental uncertainty, which meant that no decision maker has any knowledge whatsoever of anything that can occur in the future, be it the near future or the distant future, be it one day in the future, one month in the future, one year in the future, five years in the future, ten years in the future, twenty years in the future, etc. The best that could be done was to assume that decision makers could sometimes make use of a weak, ordinal probability approach. Both approaches have no support whatsoever in anything actually written by Keynes in his lifetime. The nihili","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127761403","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 examine how the services sector could provide decent and gainful employment in developing Asia. Using living wages as a reference point, we report that a significant portion of the workforce in developing Asian economies, the majority of which are employed in the agricultural sector, are not living wage earners. On the other hand, manufacturing, and to a larger extent, services, are able to provide their workforce with good jobs. Economies that are more successful at moving workers from low- to high-productivity sectors have done better on job creation accompanied with improved productivity, higher wages, and large reductions in poverty. Recent developments of information and communication technology industries, as in the case of India and the Philippines, is a striking example of how developing economies can open up business opportunities through global outsourcing of tradable labor. We highlight the importance of improving human capital through education and upskilling, as well as physical and digital infrastructure, to address the large supply of low-productivity and informal sector workers in developing Asia, and to provide new and gainful employment opportunities.
{"title":"Prospects for Decent Work in Services","authors":"Sameer Khatiwada, J. P. Flaminiano","doi":"10.2139/ssrn.3470041","DOIUrl":"https://doi.org/10.2139/ssrn.3470041","url":null,"abstract":"We examine how the services sector could provide decent and gainful employment in developing Asia. Using living wages as a reference point, we report that a significant portion of the workforce in developing Asian economies, the majority of which are employed in the agricultural sector, are not living wage earners. On the other hand, manufacturing, and to a larger extent, services, are able to provide their workforce with good jobs. Economies that are more successful at moving workers from low- to high-productivity sectors have done better on job creation accompanied with improved productivity, higher wages, and large reductions in poverty. Recent developments of information and communication technology industries, as in the case of India and the Philippines, is a striking example of how developing economies can open up business opportunities through global outsourcing of tradable labor. We highlight the importance of improving human capital through education and upskilling, as well as physical and digital infrastructure, to address the large supply of low-productivity and informal sector workers in developing Asia, and to provide new and gainful employment opportunities.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132608520","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 document a disparity in the cyclicality of the allocative wage-the labor costs considered when deciding to form or dissolve an employment relationship-across levels of educational attainment. Specifically, workers with a bachelors degree or more exhibit an allocative wage that is highly pro-cyclical while high school dropouts exhibit no statistically discernible cyclical pattern. I also assess the response to monetary policy shocks of both employment and allocative wages across education groups. The less educated respond to monetary policy shocks on the employment margin while the more educated respond on the wage margin. An important takeaway is that conventional monetary policy easing reduces employment inequality but increases wage inequality. I embed these findings in a New Keynesian framework that includes price and heterogeneous wage rigidity and show that heterogeneity results in welfare losses due to fluctuations that exceed those of the output-gap and p rice-level equivalent representative agent economy. The excess welfare loss is borne by the least educated.
{"title":"Do Greasy Wheels Curb Inequality?","authors":"Cynthia L. Doniger","doi":"10.17016/FEDS.2019.021","DOIUrl":"https://doi.org/10.17016/FEDS.2019.021","url":null,"abstract":"I document a disparity in the cyclicality of the allocative wage-the labor costs considered when deciding to form or dissolve an employment relationship-across levels of educational attainment. Specifically, workers with a bachelors degree or more exhibit an allocative wage that is highly pro-cyclical while high school dropouts exhibit no statistically discernible cyclical pattern. I also assess the response to monetary policy shocks of both employment and allocative wages across education groups. The less educated respond to monetary policy shocks on the employment margin while the more educated respond on the wage margin. An important takeaway is that conventional monetary policy easing reduces employment inequality but increases wage inequality. I embed these findings in a New Keynesian framework that includes price and heterogeneous wage rigidity and show that heterogeneity results in welfare losses due to fluctuations that exceed those of the output-gap and p rice-level equivalent representative agent economy. The excess welfare loss is borne by the least educated.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130394688","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 : 2019-03-01DOI: 10.5089/9781498302784.001
Antonio C. David, Frederic J. Lambert, F. Toscani
We analyze the performance of labor markets in Latin America since the late 1990s. Strong GDP growth during the commodity boom period led to important gains in employment and a fall in the unemployment rate as labor demand outpaced an increasing labor supply. We emphasize the role of informality in the dynamics of labor markets in Latin America. A re-examination of Okun's law shows that informality dampens changes in unemployment accompanying output fluctuations. Moreover, we present some evidence that countries with higher redundancy costs and cumbersome dismissal regulations, exhibit 'excess' informality over and above what would be expected based on their income and educational levels. Labor market reforms could thus contribute to reducing informality and increasing the responsiveness of labor markets to output growth. However, looking at selected case studies of reforms using the synthetic control method, we find mixed results in terms of labor market outcomes.
{"title":"More Work to Do? Taking Stock of Latin American Labor Markets","authors":"Antonio C. David, Frederic J. Lambert, F. Toscani","doi":"10.5089/9781498302784.001","DOIUrl":"https://doi.org/10.5089/9781498302784.001","url":null,"abstract":"We analyze the performance of labor markets in Latin America since the late 1990s. Strong GDP growth during the commodity boom period led to important gains in employment and a fall in the unemployment rate as labor demand outpaced an increasing labor supply. We emphasize the role of informality in the dynamics of labor markets in Latin America. A re-examination of Okun's law shows that informality dampens changes in unemployment accompanying output fluctuations. Moreover, we present some evidence that countries with higher redundancy costs and cumbersome dismissal regulations, exhibit 'excess' informality over and above what would be expected based on their income and educational levels. Labor market reforms could thus contribute to reducing informality and increasing the responsiveness of labor markets to output growth. However, looking at selected case studies of reforms using the synthetic control method, we find mixed results in terms of labor market outcomes.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"3 2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123427308","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 United States structure and equipment capital are eectively taxed at dierent rates. Recently, President Obama joined the group of policy makers and economists who propose to eliminate these dierentials. This paper analyzes the consequences of such a reform using an incomplete markets model with equipment-skill complementarity. We nd that the reform increases average welfare by 0.1%. Importantly, we nd that the reform does not involve the usual eciency vs. equality trade-o: it improves both. JEL classication: E62, H21.
{"title":"On the Consequences of Eliminating Capital Tax Differentials","authors":"Ctirad Slav́ık, Hakkı Yazıcı","doi":"10.1111/caje.12370","DOIUrl":"https://doi.org/10.1111/caje.12370","url":null,"abstract":"In the United States structure and equipment capital are eectively taxed at dierent rates. Recently, President Obama joined the group of policy makers and economists who propose to eliminate these dierentials. This paper analyzes the consequences of such a reform using an incomplete markets model with equipment-skill complementarity. We nd that the reform increases average welfare by 0.1%. Importantly, we nd that the reform does not involve the usual eciency vs. equality trade-o: it improves both. JEL classication: E62, H21.","PeriodicalId":125977,"journal":{"name":"ERN: Other Macroeconomics: Employment","volume":"160 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121789300","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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