Addison, John T.
Addison, John T.; Barrett, Richard C.; Siebert, W. Stanley
The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers’ insurance, and may also redistribute in favour of more ‘deserving’ workers. The risk is that it may also reduce output. The more diverse are free market contracts—separating the various worker types—the more likely it is that such output effects will on balance serve to reduce welfare. It is shown that adverse effects can be reduced by restricting mandates to larger firms. An alternative to a mandate is direct government provision. We demonstrate that direct government provision has...
Bauer, Philipp; Riphahn, Regina T.
This study compares the intergenerational transmission of educational attainment across immigrant groups using the Swiss Census 2000. Determinants of educational outcome and educational mobility are examined. A child’s educational opportunity depends on its parental background. Not only the effect of parental human capital but also other determinants of child educational attainment vary depending on the child’s nationality. Overall educational upward mobility is more pronounced among second generation immigrants than among natives. Children of Turkish, Portuguese and former Yugoslavian origin appear to be most disadvantaged in the process of human capital formation.
Imbens, Guido W.; Lynch, Lisa M.
Using a Cox proportional hazard model that allows for a flexible time dependence in order to incorporate business cycle effects, we analyze the determinants of re-employment probabilities of young workers in the USA from
1978–1989. We find considerable changes in the chances of young workers finding
jobs over the business cycle despite the fact that personal characteristics of those starting jobless spells do not vary much over time. Therefore, government programs that target specific demographic groups may change individuals’ positions within the queue of job seekers, but may only have a more limited impact on average re- employment probabilities. Living in an...
Kriechel, Ben; Pfann, Gerard A.
We combine post-displacement survey data with information from personnel files of a displacing firm in order to reveal sources of worker heterogeneity in search time and wage losses. The Fokker Personnel Files and Survey are described in detail. We develop a dynamic reservation wage with updating. The method of updating is based on the simple idea that job seekers are informed about successful matches of their former colleagues similar to them. The data off er empirical support for the updating model.
Machin, Stephen; Marie, Olivier
In this paper we look at the relationship between crime and economic incentives in a different way to other work in the economics of crime field. We look at empirical models where a toughening of the unemployment benefit regime can be used to study how people on the margins of crime may react to changes in economic incentives. We present three sets of complementary evidence, all of which show that toughening the benefit regime can have an unintended consequence, namely increases in crime. The first approach presents quasi-experimental evidence, looking at crime rates in areas of England and Wales before...
Margolis, David N.
This paper considers the role of mergers and acquisitions on employment. First, it considers the importance of different aspects of compensation policy and human resource management practices for distinguishing acquired and acquiring firms. Second, it examines which individuals from which firms remain with the newly created entity after the takeover. Using a unique employer–employee linked data set for France, we find that very few observable workforce or compensation characteristics distinguish acquired from acquiring firms ex-ante. Nevertheless, the human resources department seems to be quite active in the post-takeover period, with employees of the acquired firm having a lower probability of...