Pub Date : 2025-09-22DOI: 10.1016/j.labeco.2025.102809
Johannes Berens , Leandro Henao , Kerstin Schneider
We examine the effects of abolishing moderate tuition fees (EUR 500 per semester) in Germany on higher education outcomes. Using administrative panel data from a state university, we find that tuition-free students reduced their academic effort: active students postponed graduation, while low-activity students became more inactive by withdrawing from registered exams. Leveraging detailed student-level data, we analyze the ghost student phenomenon, in which enrolled students show no academic activity. This pattern emerges from strong enrollment incentives combined with a lack of performance standards. After the reform, the share of ghost students increased, reducing the efficiency of public spending on higher education.
{"title":"Tuition fees and academic (in)activity","authors":"Johannes Berens , Leandro Henao , Kerstin Schneider","doi":"10.1016/j.labeco.2025.102809","DOIUrl":"10.1016/j.labeco.2025.102809","url":null,"abstract":"<div><div>We examine the effects of abolishing moderate tuition fees (EUR 500 per semester) in Germany on higher education outcomes. Using administrative panel data from a state university, we find that tuition-free students reduced their academic effort: active students postponed graduation, while low-activity students became more inactive by withdrawing from registered exams. Leveraging detailed student-level data, we analyze the ghost student phenomenon, in which enrolled students show no academic activity. This pattern emerges from strong enrollment incentives combined with a lack of performance standards. After the reform, the share of ghost students increased, reducing the efficiency of public spending on higher education.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102809"},"PeriodicalIF":2.6,"publicationDate":"2025-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145220501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-18DOI: 10.1016/j.labeco.2025.102770
Radine Rafols
I study how early gender beliefs shape the labor market consequences of parenthood. Drawing on panel data from the NLSY79, I document sharp and persistent gender gaps in wages, hours, employment, and earnings following childbirth. Mothers with egalitarian norms exhibit stronger labor force attachment and suffer smaller penalties across all outcomes. To understand mechanisms, I demonstrate that gender norms affect decisions that typically correlate with labor market success. A causal mediation analysis reveals that the indirect effect of norm beliefs on fertility explain a sizable share of the gap between modern and traditional mothers, while education, marriage timing, and occupational sorting play more limited roles.
{"title":"Gender norms and child penalties","authors":"Radine Rafols","doi":"10.1016/j.labeco.2025.102770","DOIUrl":"10.1016/j.labeco.2025.102770","url":null,"abstract":"<div><div>I study how early gender beliefs shape the labor market consequences of parenthood. Drawing on panel data from the NLSY79, I document sharp and persistent gender gaps in wages, hours, employment, and earnings following childbirth. Mothers with egalitarian norms exhibit stronger labor force attachment and suffer smaller penalties across all outcomes. To understand mechanisms, I demonstrate that gender norms affect decisions that typically correlate with labor market success. A causal mediation analysis reveals that the indirect effect of norm beliefs on fertility explain a sizable share of the gap between modern and traditional mothers, while education, marriage timing, and occupational sorting play more limited roles.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102770"},"PeriodicalIF":2.6,"publicationDate":"2025-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145118903","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-17DOI: 10.1016/j.labeco.2025.102807
Salvador Valdés-Prieto , Samuel Leyton
We examine how gaps in contributions to social insurance vary across the earnings distribution. These gaps have multiple short-term effects on workers in addition to reducing contributory pensions. Using a 14-year panel from Chile, we find that earners in the two lowest wage deciles experience substantially higher gaps, a result that persists after controlling for extensive covariates, individual fixed effects and applying instrumental variables. The remaining incidence of the wage decile on earner gaps is a collective attribute of each wage decile that may help guide policy. We also analyze total gaps—which include periods of inactivity—using a 35-year administrative panel. Total gap frequency declines from 91–90% in the lowest decile to 26% in the highest, a larger inequality than in other estimates. We further measure the dispersion of cumulative total gaps over a 20-year horizon, starting from different initial earnings deciles. Finally, we review reasons for weak political incentives to reduce earner gaps through closing statutory exemptions and increasing enforcement budgets.
{"title":"Inequality in pension contribution gaps1","authors":"Salvador Valdés-Prieto , Samuel Leyton","doi":"10.1016/j.labeco.2025.102807","DOIUrl":"10.1016/j.labeco.2025.102807","url":null,"abstract":"<div><div>We examine how gaps in contributions to social insurance vary across the earnings distribution. These gaps have multiple short-term effects on workers in addition to reducing contributory pensions. Using a 14-year panel from Chile, we find that earners in the two lowest wage deciles experience substantially higher gaps, a result that persists after controlling for extensive covariates, individual fixed effects and applying instrumental variables. The remaining incidence of the wage decile on earner gaps is a collective attribute of each wage decile that may help guide policy. We also analyze total gaps—which include periods of inactivity—using a 35-year administrative panel. Total gap frequency declines from 91–90% in the lowest decile to 26% in the highest, a larger inequality than in other estimates. We further measure the dispersion of cumulative total gaps over a 20-year horizon, starting from different initial earnings deciles. Finally, we review reasons for weak political incentives to reduce earner gaps through closing statutory exemptions and increasing enforcement budgets.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102807"},"PeriodicalIF":2.6,"publicationDate":"2025-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145267338","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-12DOI: 10.1016/j.labeco.2025.102768
Michael S. Kofoed , Todd R. Jones
Higher education policymakers are concerned about the success of first-generation college students. In this study, we investigate one potential factor that may influence the outcomes of first-generation students: their peers. We leverage the assignment of roommates at The United States Military Academy (West Point) to study the effect of being exposed to a roommate(s) with a one standard deviation higher SAT score on first-semester math and English grades for first-generation students. In our main specifications, we fail to detect statistically significant effects, though we can rule out effects larger than around 0.05 to 0.07 standard deviations in final course grades.
{"title":"First generation college students and peer effects","authors":"Michael S. Kofoed , Todd R. Jones","doi":"10.1016/j.labeco.2025.102768","DOIUrl":"10.1016/j.labeco.2025.102768","url":null,"abstract":"<div><div>Higher education policymakers are concerned about the success of first-generation college students. In this study, we investigate one potential factor that may influence the outcomes of first-generation students: their peers. We leverage the assignment of roommates at The United States Military Academy (West Point) to study the effect of being exposed to a roommate(s) with a one standard deviation higher SAT score on first-semester math and English grades for first-generation students. In our main specifications, we fail to detect statistically significant effects, though we can rule out effects larger than around 0.05 to 0.07 standard deviations in final course grades.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102768"},"PeriodicalIF":2.6,"publicationDate":"2025-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145106233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-11DOI: 10.1016/j.labeco.2025.102800
Lena Abou El-Komboz, Moritz Goldbeck
Why do developers contribute to open-source software (OSS), a public good? We study OSS activity of some 22,900 developers on the largest online code repository platform, GitHub, and find evidence in favor of career concerns as a motivation. Our difference-in-differences model leverages temporal variation in signaling incentives to identify OSS activity driven by career concerns. We find that OSS activity of users who move for a job is significantly elevated in the job search period. This effect is driven by projects increasing external visibility and written in programming languages highly valued in the labor market, but with a lower direct use-value for the community.
{"title":"Career concerns as public good: The role of signaling for open source software development","authors":"Lena Abou El-Komboz, Moritz Goldbeck","doi":"10.1016/j.labeco.2025.102800","DOIUrl":"10.1016/j.labeco.2025.102800","url":null,"abstract":"<div><div>Why do developers contribute to open-source software (OSS), a public good? We study OSS activity of some 22,900 developers on the largest online code repository platform, <em>GitHub</em>, and find evidence in favor of career concerns as a motivation. Our difference-in-differences model leverages temporal variation in signaling incentives to identify OSS activity driven by career concerns. We find that OSS activity of users who move for a job is significantly elevated in the job search period. This effect is driven by projects increasing external visibility and written in programming languages highly valued in the labor market, but with a lower direct use-value for the community.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102800"},"PeriodicalIF":2.6,"publicationDate":"2025-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145050112","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-09DOI: 10.1016/j.labeco.2025.102787
Bernt Bratsberg , Selma Walther
Leveraging the first Covid-19 lockdown in Norway as a laboratory for an increase in work flexibility, we uncover a significant and persistent 10% increase in births. Using the Goldin (2014) measure of work flexibility based on occupation characteristics, we show that fertility increases were concentrated among women in “greedy jobs” with lower flexibility prior to lockdown. We formalize this intuition in a theoretical model where a rise in flexibility increases a woman’s time budget and boosts the fertility of higher earning women. The increase in work flexibility under Covid-19 lockdown allowed high-earning women in inflexible jobs to alleviate the career-family trade-off.
{"title":"The impact of flexibility at work on fertility","authors":"Bernt Bratsberg , Selma Walther","doi":"10.1016/j.labeco.2025.102787","DOIUrl":"10.1016/j.labeco.2025.102787","url":null,"abstract":"<div><div>Leveraging the first Covid-19 lockdown in Norway as a laboratory for an increase in work flexibility, we uncover a significant and persistent 10% increase in births. Using the Goldin (2014) measure of work flexibility based on occupation characteristics, we show that fertility increases were concentrated among women in “greedy jobs” with lower flexibility prior to lockdown. We formalize this intuition in a theoretical model where a rise in flexibility increases a woman’s time budget and boosts the fertility of higher earning women. The increase in work flexibility under Covid-19 lockdown allowed high-earning women in inflexible jobs to alleviate the career-family trade-off.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102787"},"PeriodicalIF":2.6,"publicationDate":"2025-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145109024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-09-03DOI: 10.1016/j.labeco.2025.102778
Dominik Boddin , Thilo Kroeger
This paper analyzes three key labor market trends – structural change, servitization, and skill-biased change – using German data from 1975 to 2017. Through a decomposition analysis, we discern their individual impacts on employment shifts, revealing their distinct roles in the German labor market’s evolution. Servitization and skill-biased change significantly influence employment growth alongside structural change. Surprisingly, for instance, structural change accounted for only two-thirds of job losses in the manufacturing sector. Further analysis uncovers more detailed patterns across tasks, firm types, and regions.
{"title":"Disentangling structural change, servitization, and skill-biased change","authors":"Dominik Boddin , Thilo Kroeger","doi":"10.1016/j.labeco.2025.102778","DOIUrl":"10.1016/j.labeco.2025.102778","url":null,"abstract":"<div><div>This paper analyzes three key labor market trends – structural change, servitization, and skill-biased change – using German data from 1975 to 2017. Through a decomposition analysis, we discern their individual impacts on employment shifts, revealing their distinct roles in the German labor market’s evolution. Servitization and skill-biased change significantly influence employment growth alongside structural change. Surprisingly, for instance, structural change accounted for only two-thirds of job losses in the manufacturing sector. Further analysis uncovers more detailed patterns across tasks, firm types, and regions.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102778"},"PeriodicalIF":2.6,"publicationDate":"2025-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145106232","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-08-29DOI: 10.1016/j.labeco.2025.102769
Victor Hernandez Martinez , Hans A. Holter , Roberto Pinheiro
This paper studies the impact of knowledge specialization on earnings losses following displacement. We develop a novel measure of human capital specialization based on the share of knowledge areas that are irrelevant for an occupation. Combining our measure with individual labor histories from the NLSY, we show that workers with human capital specialization one standard deviation larger than average suffer earnings losses 4.8 percentage points larger than average per year following exogenous displacement. A longer average duration of non-employment spells and occupational downgrading are the two mechanisms that explain the negative effect of specialization on post-displacement earnings.
{"title":"The Hedgehog’s curse: Knowledge specialization and displacement loss","authors":"Victor Hernandez Martinez , Hans A. Holter , Roberto Pinheiro","doi":"10.1016/j.labeco.2025.102769","DOIUrl":"10.1016/j.labeco.2025.102769","url":null,"abstract":"<div><div>This paper studies the impact of knowledge specialization on earnings losses following displacement. We develop a novel measure of human capital specialization based on the share of knowledge areas that are irrelevant for an occupation. Combining our measure with individual labor histories from the NLSY, we show that workers with human capital specialization one standard deviation larger than average suffer earnings losses 4.8 percentage points larger than average per year following exogenous displacement. A longer average duration of non-employment spells and occupational downgrading are the two mechanisms that explain the negative effect of specialization on post-displacement earnings.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102769"},"PeriodicalIF":2.6,"publicationDate":"2025-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145049958","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-08-29DOI: 10.1016/j.labeco.2025.102767
Guangli Zhang , Jeffrey Cross
That customers respond to tip suggestions is well-documented, but less is known about how changing tip suggestions impacts service quality. Leveraging the unique setting of New York City taxicabs, we document that increasing tip suggestions improves driver efficiency (e.g., shorter distance) only when total fares are fixed. Findings from this paper thus provide novel evidence that changes in tip suggestions can impact supply-side behavior, such as service efficiency. Our results show, however, that the effect will likely vary based on the market setting, particularly the pricing mechanisms and the opportunity cost of slower service.
{"title":"Tip suggestions and service efficiency","authors":"Guangli Zhang , Jeffrey Cross","doi":"10.1016/j.labeco.2025.102767","DOIUrl":"10.1016/j.labeco.2025.102767","url":null,"abstract":"<div><div>That customers respond to tip suggestions is well-documented, but less is known about how changing tip suggestions impacts service quality. Leveraging the unique setting of New York City taxicabs, we document that increasing tip suggestions improves driver efficiency (e.g., shorter distance) only when total fares are fixed. Findings from this paper thus provide novel evidence that changes in tip suggestions can impact supply-side behavior, such as service efficiency. Our results show, however, that the effect will likely vary based on the market setting, particularly the pricing mechanisms and the opportunity cost of slower service.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102767"},"PeriodicalIF":2.6,"publicationDate":"2025-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144988708","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-08-25DOI: 10.1016/j.labeco.2025.102771
Erik Hernæs , Zhiyang Jia , John Piggott , Trond Christian Vigtel
Many consider that reducing the eligibility age for pension benefits will discourage labour supply among mature workers. This paper analyses a recent Norwegian pension reform that effectively lowered the eligibility age for retirement for some workers from 67 to 62, and we find that the above proposition might not be true. For these workers, the option of flexibly claiming from age 62 is introduced while the expected present value of benefits is held constant through actuarial adjustment of the periodic pension payments. This reform provides us with a unique opportunity to isolate the impact of increased flexibility on labour supply. We employ an event-study difference-in-difference approach to study the labour supply response (measured by number of weekly working hours as well as labour earnings) on the intensive and extensive margin. For those aged from 62 to 66, the reform leads to an increase in the labour supply at the extensive margin of 1.3 percentage points with a reduction in inflow to disability, and a decrease in the intensive margin of labour supply as measured by weekly working hours. In addition, a shift in the distribution of labour earnings further supports the finding that there is a decrease in the intensive margin of labour supply. Our findings thus suggest that increased pension flexibility could promote a gradual exit from the labour market, allowing for greater individual choice and positive welfare effects. This flexibility could also be an important component of broader pension reform.
{"title":"Work less but stay longer — Mature worker responses to a flexibility reform","authors":"Erik Hernæs , Zhiyang Jia , John Piggott , Trond Christian Vigtel","doi":"10.1016/j.labeco.2025.102771","DOIUrl":"10.1016/j.labeco.2025.102771","url":null,"abstract":"<div><div>Many consider that reducing the eligibility age for pension benefits will discourage labour supply among mature workers. This paper analyses a recent Norwegian pension reform that effectively lowered the eligibility age for retirement for some workers from 67 to 62, and we find that the above proposition might not be true. For these workers, the option of flexibly claiming from age 62 is introduced while the expected present value of benefits is held constant through actuarial adjustment of the periodic pension payments. This reform provides us with a unique opportunity to isolate the impact of increased flexibility on labour supply. We employ an event-study difference-in-difference approach to study the labour supply response (measured by number of weekly working hours as well as labour earnings) on the intensive and extensive margin. For those aged from 62 to 66, the reform leads to an increase in the labour supply at the extensive margin of 1.3 percentage points with a reduction in inflow to disability, and a decrease in the intensive margin of labour supply as measured by weekly working hours. In addition, a shift in the distribution of labour earnings further supports the finding that there is a decrease in the intensive margin of labour supply. Our findings thus suggest that increased pension flexibility could promote a gradual exit from the labour market, allowing for greater individual choice and positive welfare effects. This flexibility could also be an important component of broader pension reform.</div></div>","PeriodicalId":48153,"journal":{"name":"Labour Economics","volume":"97 ","pages":"Article 102771"},"PeriodicalIF":2.6,"publicationDate":"2025-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144925893","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}