Many school-leavers enter the labour market via temporary employment. In this paper we investigate the impact of a temporary employment spell at the start of the career on the transition rate into permanent employment. We compare the case of temporary employment to the hypothetical case of a direct transition from unemployment to permanent employment. In order to control for selective participation in temporary employment we include a large set of explanatory variables which have been especially collected to study school-leavers. We apply the AIC-information criterion to select the appropriate specification for unobserved heterogeneity. Based on the information criteria we conclude that given our data, there is no support for a model with selection in unobserved characteristics. Simulation exercises provide insights into the development of the effect of temporary employment over time. For a sample of unemployed Flemish school-leavers we find that in the short run temporary employment delays the school leaver’s transition to permanent employment. However, in the long run temporary employment acts as a stepping stone and decreases the duration until permanent employment.
{"title":"Is Temporary Employment a Stepping Stone for Unemployed School Leavers?","authors":"Christian Goebel, E. Verhofstadt","doi":"10.2139/ssrn.1314247","DOIUrl":"https://doi.org/10.2139/ssrn.1314247","url":null,"abstract":"Many school-leavers enter the labour market via temporary employment. In this paper we investigate the impact of a temporary employment spell at the start of the career on the transition rate into permanent employment. We compare the case of temporary employment to the hypothetical case of a direct transition from unemployment to permanent employment. In order to control for selective participation in temporary employment we include a large set of explanatory variables which have been especially collected to study school-leavers. We apply the AIC-information criterion to select the appropriate specification for unobserved heterogeneity. Based on the information criteria we conclude that given our data, there is no support for a model with selection in unobserved characteristics. Simulation exercises provide insights into the development of the effect of temporary employment over time. For a sample of unemployed Flemish school-leavers we find that in the short run temporary employment delays the school leaver’s transition to permanent employment. However, in the long run temporary employment acts as a stepping stone and decreases the duration until permanent employment.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133121886","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 : 2008-11-01DOI: 10.1111/j.1467-9396.2008.00764.x
S. Marjit, A. Mukherjee
We show that international outsourcing and R&D by the outsourced firm may be either substitutes or complements. Outsourcing increases the R&D investment in small markets and in highly competitive product markets, whereas it decreases the R&D investment in large markets. If the outsourced firm can be technologically very efficient under exporting, outsourcing can make the consumers worse off by reducing the R&D investment. If there is skill differential in the production process and outsourcing occurs only in the unskilled activities, R&D-reducing outsourcing occurs in a relatively low-skilled industry. If outsourcing of the unskilled jobs reduces the effective cost of the skilled workers by increasing the productivities of the skilled workers, outsourcing provides further disincentive for R&D compared to the situation where outsourcing of the unskilled jobs does not affect the effective cost of the skilled workers.
{"title":"International Outsourcing and R&D: Long-Run Implications for Consumers","authors":"S. Marjit, A. Mukherjee","doi":"10.1111/j.1467-9396.2008.00764.x","DOIUrl":"https://doi.org/10.1111/j.1467-9396.2008.00764.x","url":null,"abstract":"We show that international outsourcing and R&D by the outsourced firm may be either substitutes or complements. Outsourcing increases the R&D investment in small markets and in highly competitive product markets, whereas it decreases the R&D investment in large markets. If the outsourced firm can be technologically very efficient under exporting, outsourcing can make the consumers worse off by reducing the R&D investment. If there is skill differential in the production process and outsourcing occurs only in the unskilled activities, R&D-reducing outsourcing occurs in a relatively low-skilled industry. If outsourcing of the unskilled jobs reduces the effective cost of the skilled workers by increasing the productivities of the skilled workers, outsourcing provides further disincentive for R&D compared to the situation where outsourcing of the unskilled jobs does not affect the effective cost of the skilled workers.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130681195","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 exploits biological fertility shocks as instrumental variables to estimate the causal effect of motherhood delay on the cognitive ability of the next generation. Using detailed panel data on women in the NLSY79 and their first-born children aged 5 to 14, we find that a year of delay leads to significant increases in math and reading scores: a 7 year delay produces gains on par with the black-white score difference. These results reveal a potential weakness of pro-natalist policies that promote early motherhood. While such policies may succeed at increasing total period fertility rates, they will be less effective at increasing total human capital.
{"title":"Motherhood Delay and the Human Capital of the Next Generation","authors":"Amalia R. Miller","doi":"10.2139/ssrn.1079832","DOIUrl":"https://doi.org/10.2139/ssrn.1079832","url":null,"abstract":"This paper exploits biological fertility shocks as instrumental variables to estimate the causal effect of motherhood delay on the cognitive ability of the next generation. Using detailed panel data on women in the NLSY79 and their first-born children aged 5 to 14, we find that a year of delay leads to significant increases in math and reading scores: a 7 year delay produces gains on par with the black-white score difference. These results reveal a potential weakness of pro-natalist policies that promote early motherhood. While such policies may succeed at increasing total period fertility rates, they will be less effective at increasing total human capital.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132560753","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}
With the advancement of medical sciences, knowledge transfer will become easier and cheaper. It may alter the way we traditionally think about relative wages. In this paper, we formalize this process with a labor model in which the cost of knowledge transfer and preferences over occupation are parameters. We find that in the extreme of zero cost of knowledge transfer, "high skill" occupations might be paid less than "low skill" occupations in equilibrium.
{"title":"Wages and Knowledge Transfer","authors":"Ludwig B. Chincarini, Daehwan Kim","doi":"10.2139/ssrn.417062","DOIUrl":"https://doi.org/10.2139/ssrn.417062","url":null,"abstract":"With the advancement of medical sciences, knowledge transfer will become easier and cheaper. It may alter the way we traditionally think about relative wages. In this paper, we formalize this process with a labor model in which the cost of knowledge transfer and preferences over occupation are parameters. We find that in the extreme of zero cost of knowledge transfer, \"high skill\" occupations might be paid less than \"low skill\" occupations in equilibrium.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129593835","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 research examines theoretically and empirically the economic origins of ethnolinguistic diversity. The empirical analysis constructs detailed data on the distribution of land qualtiy and elevation across contiguous regions, virtual and real countries, and shows that variation in elevation and land quality has contributed significantly to the emergence and persistence of ethnic fractionalization. The empirical and historical evidence support the theoretical analysis, according to which heterogenous land endowments generated region specific human capital, liminting population mobility and leading to the formation of localized ethnicities and languages. The research contributes to the understanding of the emergence of ethnicities and languages. The research contributes to the understanding of the emergence of ethnicities and their spatial distribution and offers a distinction between the natural, georgraphically driven, versus the artificial, man-made, components of contemporary ethnic diversity.
{"title":"The Origins of Ethnolinguistic Diversity: Theory and Evidence","authors":"S. Michalopoulos","doi":"10.2139/ssrn.1286893","DOIUrl":"https://doi.org/10.2139/ssrn.1286893","url":null,"abstract":"This research examines theoretically and empirically the economic origins of ethnolinguistic diversity. The empirical analysis constructs detailed data on the distribution of land qualtiy and elevation across contiguous regions, virtual and real countries, and shows that variation in elevation and land quality has contributed significantly to the emergence and persistence of ethnic fractionalization. The empirical and historical evidence support the theoretical analysis, according to which heterogenous land endowments generated region specific human capital, liminting population mobility and leading to the formation of localized ethnicities and languages. The research contributes to the understanding of the emergence of ethnicities and languages. The research contributes to the understanding of the emergence of ethnicities and their spatial distribution and offers a distinction between the natural, georgraphically driven, versus the artificial, man-made, components of contemporary ethnic diversity.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125105217","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 : 2008-10-16DOI: 10.1111/j.1467-9957.2008.01085.x
Ali M. Ahmed
A model is presented where identical firms announce vacancies and wages and workers apply to the firm. Workers are of two types, b and g, but identical in productivity. Firms do not prefer a particular type of worker over another; however, a common belief among all workers is that type b workers are discriminated against. This causes type b workers to avoid applying for jobs that offer wages perceived to be too high. In equilibrium some firms announce high wages thereby attracting only type g workers, while others announce low wages thereby attracting only type b workers.
{"title":"If You Believe that Discrimination Exists, it Will","authors":"Ali M. Ahmed","doi":"10.1111/j.1467-9957.2008.01085.x","DOIUrl":"https://doi.org/10.1111/j.1467-9957.2008.01085.x","url":null,"abstract":"A model is presented where identical firms announce vacancies and wages and workers apply to the firm. Workers are of two types, b and g, but identical in productivity. Firms do not prefer a particular type of worker over another; however, a common belief among all workers is that type b workers are discriminated against. This causes type b workers to avoid applying for jobs that offer wages perceived to be too high. In equilibrium some firms announce high wages thereby attracting only type g workers, while others announce low wages thereby attracting only type b workers.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"79 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130656703","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}
Kevin J. Davis, James E. Parco, D. Levy, Steve P. Fraser
In a modern era where military professionals, like their civilian counterparts, routinely find themselves facing significant ambiguity, we recognize a vital need to prepare junior officers for the challenges that await them. In our capacity as faculty members (past and present) in the Department of Management at the United States Air Force Academy, we have developed a course over the past twelve years aimed at fostering intellectual curiosity, critical thinking skill and the ability to frame and resolve ill-defined problems. This paper uses various aspects of the course's framework to demonstrate how students are taken on a journey which allows them to experience the dramatic differences made possible by changing one's perspective. Students are pushed into a realm of ambiguity, from which they generally realize that their prior models of a number of systems are fragile and inadequate; further, they come to see that answers, models, and frameworks are enactments which can always be improved upon. Results from the Watson-Glaser Critical Thinking Appraisal indicate that the course improves students' critical thinking abilities. However, the course was not designed to teach students to think critically, but rather to lead them on a journey of self-discovery, forcing them to enact new realities.
在现代，军事专业人员和文职人员一样，经常发现自己面临着重大的不确定性，我们认识到，迫切需要为等待他们的挑战做好准备。作为美国空军学院(United States Air Force Academy)管理学院(Department of Management)过去和现在的教员，我们在过去12年里开设了一门课程，旨在培养学生的求知欲、批判性思维技能以及构建和解决不明确问题的能力。本文使用课程框架的各个方面来展示学生如何踏上一段旅程，使他们能够通过改变一个人的视角来体验可能产生的巨大差异。学生们被推入一个模棱两可的领域，从中他们通常意识到他们之前的一些系统模型是脆弱和不充分的;此外，他们会看到答案、模型和框架都是可以不断改进的制定。Watson-Glaser批判性思维评估结果表明，该课程提高了学生的批判性思维能力。然而，这门课程的目的不是教学生批判性地思考，而是引导他们踏上自我发现的旅程，迫使他们制定新的现实。
{"title":"Embracing Ambiguity: Creating Portals to Enactment and Inquiry","authors":"Kevin J. Davis, James E. Parco, D. Levy, Steve P. Fraser","doi":"10.2139/ssrn.1018457","DOIUrl":"https://doi.org/10.2139/ssrn.1018457","url":null,"abstract":"In a modern era where military professionals, like their civilian counterparts, routinely find themselves facing significant ambiguity, we recognize a vital need to prepare junior officers for the challenges that await them. In our capacity as faculty members (past and present) in the Department of Management at the United States Air Force Academy, we have developed a course over the past twelve years aimed at fostering intellectual curiosity, critical thinking skill and the ability to frame and resolve ill-defined problems. This paper uses various aspects of the course's framework to demonstrate how students are taken on a journey which allows them to experience the dramatic differences made possible by changing one's perspective. Students are pushed into a realm of ambiguity, from which they generally realize that their prior models of a number of systems are fragile and inadequate; further, they come to see that answers, models, and frameworks are enactments which can always be improved upon. Results from the Watson-Glaser Critical Thinking Appraisal indicate that the course improves students' critical thinking abilities. However, the course was not designed to teach students to think critically, but rather to lead them on a journey of self-discovery, forcing them to enact new realities.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"111 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129414948","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 light of the Virginia Tech shootings, this Note argues that both FERPA and the common law contain internal tensions regarding safety and privacy that neither Congress nor the courts have adequately reconciled, and that important discrepancies regarding information sharing exist between IHEs' practices, the common law's demands, and FERPA's limitations. Part I provides background on FERPA and argues that FERPA's emergency exception is too narrow and confusing, so that IHEs default to the nondisclosure option rather than disclosing information to third parties, such as parents, when students threaten to harm themselves or others. At the same time, FERPA's tax dependent exception operates as an overly broad bright-line rule that, coupled with FERPA's lax enforcement mechanism, fails to adequately protect the privacy of students' education records. Thus, FERPA's emergency exception fails to ensure safety, while the tax dependent exception eviscerates the statute's privacy protection. Part II points out that, at the common law, courts have traditionally relied upon three competing strands of tort doctrines, each of which emphasizes either safety or privacy to the exclusion of the other. Thus, while the "duty" strand of premises liability uses safety as a sword and emphasizes foreseeability, the "no duty" strand of custodial relations and in loco parentis uses privacy as a liability shield. In the past, as the common law shifted from using safety as a sword to using privacy as a shield, FERPA responded. For example, as societal attitudes and the common law changed regarding alcohol use, Congress created a tailored exception allowing IHEs to notify parents when students violate laws or policies regarding the possession or use of controlled substances. Currently, another such shift is occurring, and courts are beginning to develop a concept of "duty-based-on-the-facts" as part of the special relationship between IHEs and students. As IHEs adopt public health models to address mental health issues on campuses, courts are using the safety sword to impose a duty on IHEs to use reasonable care to prevent foreseeable acts of harm to and by students, including suicide. However, FERPA has yet to respond to these increasing demands that the common law places on IHEs to share and disclose information about students' mental health. Part III proposes ways to resolve the tensions within the common law and FERPA regarding safety and privacy, as well as ways to align the duties the common law imposes on IHEs with the limits on disclosure that FERPA requires of IHEs. In reference to the common law, this Note argues that courts should create a coherent foreseeability framework specific to the mental health and IHE context, acknowledging the limits of foreseeability-especially for college and university personnel who are not mental health professionals-while balancing safety and privacy concerns. Part III also argues that Congress should amend FERPA to appropriately b
{"title":"Institutes of Higher Education, Safety Swords, and Privacy Shields: Reconciling FERPA and the Common Law","authors":"Stephanie Humphries","doi":"10.2139/SSRN.1324432","DOIUrl":"https://doi.org/10.2139/SSRN.1324432","url":null,"abstract":"In light of the Virginia Tech shootings, this Note argues that both FERPA and the common law contain internal tensions regarding safety and privacy that neither Congress nor the courts have adequately reconciled, and that important discrepancies regarding information sharing exist between IHEs' practices, the common law's demands, and FERPA's limitations. Part I provides background on FERPA and argues that FERPA's emergency exception is too narrow and confusing, so that IHEs default to the nondisclosure option rather than disclosing information to third parties, such as parents, when students threaten to harm themselves or others. At the same time, FERPA's tax dependent exception operates as an overly broad bright-line rule that, coupled with FERPA's lax enforcement mechanism, fails to adequately protect the privacy of students' education records. Thus, FERPA's emergency exception fails to ensure safety, while the tax dependent exception eviscerates the statute's privacy protection. Part II points out that, at the common law, courts have traditionally relied upon three competing strands of tort doctrines, each of which emphasizes either safety or privacy to the exclusion of the other. Thus, while the \"duty\" strand of premises liability uses safety as a sword and emphasizes foreseeability, the \"no duty\" strand of custodial relations and in loco parentis uses privacy as a liability shield. In the past, as the common law shifted from using safety as a sword to using privacy as a shield, FERPA responded. For example, as societal attitudes and the common law changed regarding alcohol use, Congress created a tailored exception allowing IHEs to notify parents when students violate laws or policies regarding the possession or use of controlled substances. Currently, another such shift is occurring, and courts are beginning to develop a concept of \"duty-based-on-the-facts\" as part of the special relationship between IHEs and students. As IHEs adopt public health models to address mental health issues on campuses, courts are using the safety sword to impose a duty on IHEs to use reasonable care to prevent foreseeable acts of harm to and by students, including suicide. However, FERPA has yet to respond to these increasing demands that the common law places on IHEs to share and disclose information about students' mental health. Part III proposes ways to resolve the tensions within the common law and FERPA regarding safety and privacy, as well as ways to align the duties the common law imposes on IHEs with the limits on disclosure that FERPA requires of IHEs. In reference to the common law, this Note argues that courts should create a coherent foreseeability framework specific to the mental health and IHE context, acknowledging the limits of foreseeability-especially for college and university personnel who are not mental health professionals-while balancing safety and privacy concerns. Part III also argues that Congress should amend FERPA to appropriately b","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"13 10","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"113964489","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 examines the problem of relaxing the exclusion restriction for the evaluation of causal effects in randomized experiments with imperfect compliance. Exclusion restriction is a relevant assumption for identifying causal effects by the nonparametric instrumental variables technique, in which the template of a randomized experiment with imperfect compliance represents a natural parametric extension. However, the full relaxation of the exclusion restriction yields likelihood functions characterized by the presence of mixtures of distributions. This complicates a likelihood-based analysis because it implies partially identified models and more than one maximum likelihood point. We consider the model identifiability when the outcome distributions of various compliance states are in the same parametric class. A two-step estimation procedure based on detecting the root closest to the method of moments estimate of the parameter vector is proposed and analyzed in detail under normally distributed outcomes. An economic example with real data on return to schooling concludes the paper.
{"title":"A Likelihood-Based Analysis for Relaxing the Exclusion Restriction in Randomized Experiments with Imperfect Compliance","authors":"Andrea Mercatanti","doi":"10.2139/SSRN.1290514","DOIUrl":"https://doi.org/10.2139/SSRN.1290514","url":null,"abstract":"This paper examines the problem of relaxing the exclusion restriction for the evaluation of causal effects in randomized experiments with imperfect compliance. Exclusion restriction is a relevant assumption for identifying causal effects by the nonparametric instrumental variables technique, in which the template of a randomized experiment with imperfect compliance represents a natural parametric extension. However, the full relaxation of the exclusion restriction yields likelihood functions characterized by the presence of mixtures of distributions. This complicates a likelihood-based analysis because it implies partially identified models and more than one maximum likelihood point. We consider the model identifiability when the outcome distributions of various compliance states are in the same parametric class. A two-step estimation procedure based on detecting the root closest to the method of moments estimate of the parameter vector is proposed and analyzed in detail under normally distributed outcomes. An economic example with real data on return to schooling concludes the paper.","PeriodicalId":142467,"journal":{"name":"Labor: Human Capital","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131775468","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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