Using the merged Labour Force Survey for the months of March and September from 2006 through 2018, a variety of techniques are employed to address the pay gap for males and females between four definitions of the public sector and the private sector, as well as the gender pay gap within each of these five sectors. It is found that females tend to have higher public sector wage premiums than their male counterparts when comparing within each gender. The gender wage gap within each sector is positive and favours males, most notably in the private sector. Estimates of any wage premiums at the mean cloud differences along the wage distribution.
{"title":"The Gender Pay Gap in the Public Sector: Evidence from the Canadian Labour Force Survey","authors":"Richard E. Mueller","doi":"10.2139/ssrn.3477612","DOIUrl":"https://doi.org/10.2139/ssrn.3477612","url":null,"abstract":"Using the merged Labour Force Survey for the months of March and September from 2006 through 2018, a variety of techniques are employed to address the pay gap for males and females between four definitions of the public sector and the private sector, as well as the gender pay gap within each of these five sectors. It is found that females tend to have higher public sector wage premiums than their male counterparts when comparing within each gender. The gender wage gap within each sector is positive and favours males, most notably in the private sector. Estimates of any wage premiums at the mean cloud differences along the wage distribution.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"97 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122589168","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 document gender differences in reactions to failure in the National College Entrance Exam, an extremely high-stakes exam that solely determines college admission outcomes for almost all teenagers in China. Using unique administrative data in Ningxia Province and a regression-discontinuity design, we find that students who score just below the tier-2 university cutoff have an eight percentage point higher probability of retaking the exam in the next year, and that retaking improves exam performance substantially. However, the increase in retake probability when confronting the failure of scoring just below the cutoff is more pronounced for men than for women (11 percentage points vs. 5.5 percentage points). The gender disparity in the tendency to retake has important implications for exam performance, college enrollment, and labor market outcomes.
{"title":"Gender Differences in Reactions to Failure in High-Stakes Competition: Evidence from the National College Entrance Exam Retakes","authors":"L. Kang, Ziteng Lei, Yang Song, Peng Zhang","doi":"10.2139/ssrn.3861378","DOIUrl":"https://doi.org/10.2139/ssrn.3861378","url":null,"abstract":"We document gender differences in reactions to failure in the National College Entrance Exam, an extremely high-stakes exam that solely determines college admission outcomes for almost all teenagers in China. Using unique administrative data in Ningxia Province and a regression-discontinuity design, we find that students who score just below the tier-2 university cutoff have an eight percentage point higher probability of retaking the exam in the next year, and that retaking improves exam performance substantially. However, the increase in retake probability when confronting the failure of scoring just below the cutoff is more pronounced for men than for women (11 percentage points vs. 5.5 percentage points). The gender disparity in the tendency to retake has important implications for exam performance, college enrollment, and labor market outcomes.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115873133","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 propose a model to study non-compete agreements and evaluate their quantitative effects. We explore an exogenous policy change that removed non-compete clauses for Brazilian footballers, the Pele Act of 1998. The Act raised players' lifetime income but changed the wage profile in a heterogeneous way, reducing young players' salaries. We structurally estimate the model's parameters by matching wages and turnover profiles in the post Act period. By changing the parameter capturing the non-compete friction, we match the changes in the age-earnings profile. The bulk of income gains is due to distributional forces, with efficiency gains playing a minor role.
{"title":"Non-compete Agreements, Wages and Efficiency: Theory and Evidence from Brazilian Football","authors":"Bernardo Guimaraes, J. Pessoa, V. Ponczek","doi":"10.2139/ssrn.3942192","DOIUrl":"https://doi.org/10.2139/ssrn.3942192","url":null,"abstract":"We propose a model to study non-compete agreements and evaluate their quantitative effects. We explore an exogenous policy change that removed non-compete clauses for Brazilian footballers, the Pele Act of 1998. The Act raised players' lifetime income but changed the wage profile in a heterogeneous way, reducing young players' salaries. We structurally estimate the model's parameters by matching wages and turnover profiles in the post Act period. By changing the parameter capturing the non-compete friction, we match the changes in the age-earnings profile. The bulk of income gains is due to distributional forces, with efficiency gains playing a minor role.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"68 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115009618","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 documents the existence of a significant wage finance premium in academia, and investigates its underlying mechanism. By exploiting an extensive dataset covering wages, publications and socio-demographics for 60,000 public-university faculty from all fields, we first document a wage premium that amounts to close to 50% for finance professors. We then show that finance-faculty wages are significantly more sensitive to students' future compensation than in other fields, which suggests that the academic premium results from a spillover from the industry. Non-exclusive channels for such spillover supported by the data are an imbalance between student demand for finance majors and the supply of finance PhD graduates, more donations originating from this industry, and the importance of student wages in business school rankings, all resulting in higher university revenues per finance faculty. By contrast to the industry, we find no evidence of higher returns to talent compared to the other fields.
{"title":"What Drives the Finance Academia Wage Premium?","authors":"Claire Célérier, B. Vallée, A. Vasilenko","doi":"10.2139/ssrn.3933193","DOIUrl":"https://doi.org/10.2139/ssrn.3933193","url":null,"abstract":"This paper documents the existence of a significant wage finance premium in academia, and investigates its underlying mechanism. By exploiting an extensive dataset covering wages, publications and socio-demographics for 60,000 public-university faculty from all fields, we first document a wage premium that amounts to close to 50% for finance professors. We then show that finance-faculty wages are significantly more sensitive to students' future compensation than in other fields, which suggests that the academic premium results from a spillover from the industry. Non-exclusive channels for such spillover supported by the data are an imbalance between student demand for finance majors and the supply of finance PhD graduates, more donations originating from this industry, and the importance of student wages in business school rankings, all resulting in higher university revenues per finance faculty. By contrast to the industry, we find no evidence of higher returns to talent compared to the other fields.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"268 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132469718","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 study investigates worker productivity in a multiple-task environment. We consider workers with the same education level while their suitability patterns for tasks differ. Under no change in tasks for which they are responsible for, there is no difference in their productivity. If responsible tasks decrease as a result of technical change, then worker productivity is diverse among them. Whether the average level of their productivity rises or declines depends on the functional form of productivity. The creation of new tasks may not decrease the variance of their productivity.
{"title":"How Does Technical Change Affect Worker Productivity in a Multiple-Task Environment?","authors":"Hideki Nakamura","doi":"10.2139/ssrn.3926441","DOIUrl":"https://doi.org/10.2139/ssrn.3926441","url":null,"abstract":"This study investigates worker productivity in a multiple-task environment. We consider workers with the same education level while their suitability patterns for tasks differ. Under no change in tasks for which they are responsible for, there is no difference in their productivity. If responsible tasks decrease as a result of technical change, then worker productivity is diverse among them. Whether the average level of their productivity rises or declines depends on the functional form of productivity. The creation of new tasks may not decrease the variance of their productivity.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129138915","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}
How new jobs requiring high skill can be notably beneficial for the overall employment of a local economy has been a long discussed topic in economic literature. Nevertheless, given the post COVID-19 breakout trend for increasing remote work, especially in the case of high-skilled workers, the beneficial effects may not be the same. This paper presents a two-sector spatial equilibrium search model that explains skill premium differences together with the pre and post COVID-19 unemployment rate patterns for high and low population density locations. This is accomplished through an idea exchange environment that draws highly paid workers, who, as their wage increases, consume more of the local goods and services, together. Post COVID-19, this situation changes to a degree, explaining the pattern reversal in unemployment rate, namely that unemployment is now greater in high population density locations.
{"title":"Population Density and Its Impact on Local Economy Pre and Post COVID-19","authors":"Despoina Balouktsi","doi":"10.2139/ssrn.3921319","DOIUrl":"https://doi.org/10.2139/ssrn.3921319","url":null,"abstract":"How new jobs requiring high skill can be notably beneficial for the overall employment of a local economy has been a long discussed topic in economic literature. Nevertheless, given the post COVID-19 breakout trend for increasing remote work, especially in the case of high-skilled workers, the beneficial effects may not be the same. This paper presents a two-sector spatial equilibrium search model that explains skill premium differences together with the pre and post COVID-19 unemployment rate patterns for high and low population density locations. This is accomplished through an idea exchange environment that draws highly paid workers, who, as their wage increases, consume more of the local goods and services, together. Post COVID-19, this situation changes to a degree, explaining the pattern reversal in unemployment rate, namely that unemployment is now greater in high population density locations.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"112 39","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131914407","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}
Our future employability and survivability will depend on our ability to competitively coexist with AI-embedded machines in the job market. We have to be smarter than AI machines. The alternative is working in the gig economy or finding a rare benevolent benefactor. Darwin’s theory of evolution says our existence depends on how Nature selectively weeds out the unfit in a given environment. Progressively we have thus arrived at a stage where survival dominantly favors those with superior intelligence and the ability to create new knowledge. At every stage of human evolution—hunter-gatherer, agriculturist, industrialist—survival demanded progressively greater intellectual contributions and competitively productive skills from individuals for success and a dignified place in society. The time has now come when survival will demand even greater intellectual contributions from individuals which rote education cannot provide because it is mechanizable in terms of artificial intelligence. Our future adversaries in the job market will be intelligent machines, other egotistical intelligent Homo sapiens, and combinations of them. The heart of AI is algorithmic computation. Computation is all about addition, subtraction, multiplication, division, and comparison of numbers, and problem solving is all about attaching meaning to numbers.
{"title":"Knowledge and Employability: The Futility of Rote Education","authors":"R. Bera","doi":"10.2139/ssrn.3908420","DOIUrl":"https://doi.org/10.2139/ssrn.3908420","url":null,"abstract":"Our future employability and survivability will depend on our ability to competitively coexist with AI-embedded machines in the job market. We have to be smarter than AI machines. The alternative is working in the gig economy or finding a rare benevolent benefactor. Darwin’s theory of evolution says our existence depends on how Nature selectively weeds out the unfit in a given environment. Progressively we have thus arrived at a stage where survival dominantly favors those with superior intelligence and the ability to create new knowledge. At every stage of human evolution—hunter-gatherer, agriculturist, industrialist—survival demanded progressively greater intellectual contributions and competitively productive skills from individuals for success and a dignified place in society. The time has now come when survival will demand even greater intellectual contributions from individuals which rote education cannot provide because it is mechanizable in terms of artificial intelligence. Our future adversaries in the job market will be intelligent machines, other egotistical intelligent Homo sapiens, and combinations of them. The heart of AI is algorithmic computation. Computation is all about addition, subtraction, multiplication, division, and comparison of numbers, and problem solving is all about attaching meaning to numbers.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122878260","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}
J. Bos, Akib Khan, Saravana Ravindran, A. Shonchoy
Can governments leverage existing service-delivery platforms to scale early childhood development (ECD) programs? We experimentally study a large-scale home-visiting intervention providing materials and counseling --- integrated into Bangladesh's national nutrition program without extra financial incentives for the service providers (SPs). We find SPs partially substituted away from nutritional to ECD counseling. Intent-to-treat estimates show the program improved child's cognitive (0.17 SD), language (0.23 SD), and socio-emotional developments (0.12-0.14 SD). Wasting and underweight rates also declined. Improved maternal agency, complementary parental investments, and higher take-up of the pre-existing nutrition program were important mechanisms. We estimate a sizeable internal rate-of-return of 19.6
{"title":"Early Childhood Human Capital Formation at Scale","authors":"J. Bos, Akib Khan, Saravana Ravindran, A. Shonchoy","doi":"10.2139/ssrn.3906697","DOIUrl":"https://doi.org/10.2139/ssrn.3906697","url":null,"abstract":"Can governments leverage existing service-delivery platforms to scale early childhood development (ECD) programs? We experimentally study a large-scale home-visiting intervention providing materials and counseling --- integrated into Bangladesh's national nutrition program without extra financial incentives for the service providers (SPs). We find SPs partially substituted away from nutritional to ECD counseling. Intent-to-treat estimates show the program improved child's cognitive (0.17 SD), language (0.23 SD), and socio-emotional developments (0.12-0.14 SD). Wasting and underweight rates also declined. Improved maternal agency, complementary parental investments, and higher take-up of the pre-existing nutrition program were important mechanisms. We estimate a sizeable internal rate-of-return of 19.6","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121464645","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 effects of changing from Pre-exam to Post-exam rank order lists submission on matching outcomes in Turkish college admissions. A conceptual framework illustrates that such reform in the constrained Deferred Acceptance mechanism improves matching stability in two ways: (i) fewer programs with empty seats, (ii) more precise stratification among programs. Results from a difference-in-differences strategy show that the reform led to less wastefulness and an increase in rank ranges for programs previously with empty seats. For programs that were previously filled, Post-exam submission resulted in more precise cutoff stratification and a decrease in their rank ranges.
{"title":"Preference Submission Timing and College Admission Outcomes: Evidence from Turkey","authors":"H. A. Arslan, Yang Song, Tong Wang","doi":"10.2139/ssrn.3757012","DOIUrl":"https://doi.org/10.2139/ssrn.3757012","url":null,"abstract":"This paper studies the effects of changing from Pre-exam to Post-exam rank order lists submission on matching outcomes in Turkish college admissions. A conceptual framework illustrates that such reform in the constrained Deferred Acceptance mechanism improves matching stability in two ways: (i) fewer programs with empty seats, (ii) more precise stratification among programs. Results from a difference-in-differences strategy show that the reform led to less wastefulness and an increase in rank ranges for programs previously with empty seats. For programs that were previously filled, Post-exam submission resulted in more precise cutoff stratification and a decrease in their rank ranges.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"108 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127939748","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}
Does offering remote work allow startup firms to attract more experienced and more diverse (gender and race) talent? We examine job listings and job applicant behavior on a leading platform in this space, AngelList Talent, amid the COVID-19 pandemic-induced shutdowns. We first characterize the jobs and organizations offering remote work before the shutdowns. We then leverage the context to help address the empirical confound of job design (including offering remote jobs) as co-determined with unobserved job and firm characteristics. By doing so, we estimate the change in applicant characteristics to job postings which are (exogenously) shifted to being remote. This design is a window into evaluating a managerial choice (offering remote work) which will likely become more salient in post-pandemic job design. We find that offering remote-eligible work attracts more experienced and diverse job applicants.
{"title":"Startup Labor Markets and Remote Work: Evidence from Job Applications","authors":"David H. Hsu, Prasanna Tambe","doi":"10.2139/ssrn.3894404","DOIUrl":"https://doi.org/10.2139/ssrn.3894404","url":null,"abstract":"Does offering remote work allow startup firms to attract more experienced and more diverse (gender and race) talent? We examine job listings and job applicant behavior on a leading platform in this space, AngelList Talent, amid the COVID-19 pandemic-induced shutdowns. We first characterize the jobs and organizations offering remote work before the shutdowns. We then leverage the context to help address the empirical confound of job design (including offering remote jobs) as co-determined with unobserved job and firm characteristics. By doing so, we estimate the change in applicant characteristics to job postings which are (exogenously) shifted to being remote. This design is a window into evaluating a managerial choice (offering remote work) which will likely become more salient in post-pandemic job design. We find that offering remote-eligible work attracts more experienced and diverse job applicants.","PeriodicalId":210669,"journal":{"name":"Labor: Human Capital eJournal","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122376144","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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