Research in Labor Economics

Published by Emerald Group Publishing Limited in association with IZA

Newsletter November 2011


Contents:

  1. New Editorial Advisory Board
  2. Thompson Reuters Book Citation Index
  3. Call for Papers
  4. Synopsis of Research in Labor Economics, Volume 33 , 2011
  5. Contents of Volume 33
  6. Abstracts of Volume 33
  7. About Research in Labor Economics
  8. Editorial Team

For additional information (e.g. instructions for authors, information about previous volumes) please visit our homepage.


  1. Editorial Advisory Board

    The editors of RLE are very pleased to announce the appointment of an Editorial Advisory Board.

    Board members are:

    Orley C. Ashenfelter
    Francine D. Blau
    Richard Blundell
    David Card
    Ronald G.Ehrenberg
    Richard B. Freeman
    Daniel S. Hamermesh
    James J. Heckman
    Alan B. Krueger
    Edward P. Lazear
    Christopher A. Pissarides
    Klaus F. Zimmermann


  2. Thomson Reuters Book Citation Index

    We are very pleased to announce that Research in Labor Economics has been included in the newly launced Thomson Reuters Book Citation Index. The Book Citation Index is a product within the Thomson Web of Science. Web of Science includes citation databases such as the Social Sciences Citation Index (SSCI) and the Conference Proceedings Citation Index .

    The Book Citation Index will connect each RLE article to a powerful new discovery tool, giving scholars the means to identify and access RLE’s articles. In conjunction with the Web of Science, RLE articles will be able to be searched worldwide, enabling a wider dissemination of research reported in each volume. In addition, RLE authors will be able to analyze their own citations within the wider scholarly research environment to determine their work’s impact on the profession.



  3. Call for Papers

    Research in Labor Economics invites all academics and researchers in the field of labor economics to submit their work for consideration in the series. Online submission can be done through the IZA’s website. Submissions for special issues and symposia are also considered.



  4. Synopsis of Volume 33

    This volume contains ten original innovative chapters on worker well-being. Three chapters are on time allocated to work and human capital acquisition, three on aspects of risk in the earnings process, two on migration, and finally two on the role of public policies and institutions on employment and earnings. Questions answered include: Are more educated women now opting out of work with a higher probability than in the past? Under what circumstances do young adults allocate non-school time to educational pursuits? How do macroeconomic shocks affect labor force participation rates? Can tax policies alleviate poverty? Are workers compensated adequately for taking risks? Do differences in private and public sector earnings affect mobility between the two sectors? Do migrant parents affect educational decisions of their offspring? Why is the service sector growing less quickly in Europe than the US?


  5. Contents of Volume 33

    PREFACE
    Solomon W. Polachek and Konstantinos Tatsiramos

    HOW DO ADOLESCENTS SPELL TIME USE? AN ALTERNATIVE METHODOLOGICAL APPROACH FOR ANALYZING TIME DIARY DATA
    Charlene M. Kalenkoski, David C. Ribar, and Leslie S. Stratton

    THE OPT-OUT REVOLUTION: RECENT TRENDS IN FEMALE LABOR SUPPLY
    Heather Antecol

    FEMALE LABOR PARTICIPATION AND OCCUPATION DECISIONS IN POST-NAFTA MEXICO
    Rafael E. De Hoyos

    A RISK AUGMENTED MINCER EARNINGS EQUATION? TAKING STOCK
    Joop Hartog

    WORKERS' MOBILITY AND THE RETURN TO EDUCATION, EVIDENCE FROM PUBLIC AND PRIVATE SECTORS
    Yuval Mazar

    FORGONE EARNINGS FROM SMOKING: EVIDENCE FOR A DEVELOPING COUNTRY
    Michael Lokshin and Kathleen Beegle

    EXERTED EFFORT AND PUBLIC POLICY TOWARDS CONTRACTED TEMPORARY MIGRATION
    Gil S. Epstein and Alessandra Venturini

    MIGRANT NETWORKS, MIGRANT SELECTION, AND HIGH SCHOOL GRADUATION IN MEXICO
    Alfonso Miranda

    IN-WORK TRANSFERS IN GOOD TIMES AND BAD: SIMULATIONS FOR IRELAND
    Olivier Bargain and Karina Doorley

    EXPLORING THE DETERMINANTS OF EMPLOYMENT IN EUROPE: THE ROLE OF SERVICES
    Roberta Serafini and Melanie Ward


  6. Abstracts of Volume 33

    HOW DO ADOLESCENTS SPELL TIME USE? AN ALTERNATIVE METHODOLOGICAL APPROACH FOR ANALYZING TIME DIARY DATA

    Charlene M. Kalenkoski
    Ohio University

    David C. Ribar
    University of North Carolina at Greensboro

    Leslie S. Stratton
    Virginia Commonwealth University

    Abstract. We investigate how household disadvantage affects the time use of 15-18 year olds using 2003-2006 data from the American Time Use Survey. Applying competing-risk hazard models, we distinguish between the incidence and duration of activities and incorporate the daily time constraint. We find that teens living in disadvantaged households spend less time in nonclassroom educational activities than other teens. Girls spend some of this time in work activities, suggesting that they are taking on adult roles. However, we find more evidence of substitution into unsupervised activities, suggesting that it may be less-structured environments that reduce educational investment.


    THE OPT-OUT REVOLUTION: RECENT TRENDS IN FEMALE LABOR SUPPLY

    Heather Antecol
    Claremont McKenna College

    Abstract. Using data from the U.S. Census in conjunction with data from the Current Population Survey (1980-2009), I find little support for the opt-out revolution - highly educated women, relative to their lesseducated counterparts, are exiting the labor force to care for their families at higher rates today than in earlier time periods - if one focuses solely on the decision to work a positive number of hours irrespective of marital status or race. If one, however, focuses on both the decision to work a positive number of hours and the decision to adjust annual hours of work (conditional on working), I find some evidence of the opt-out revolution, particularly among white college educated married women in male-dominated occupations.


    FEMALE LABOR PARTICIPATION AND OCCUPATION DECISIONS IN POST-NAFTA MEXICO

    Rafael E. De Hoyos
    Government of Mexico

    Abstract. The objective of this chapter is to estimate the parameters defining female labor participation and occupation decisions in mexico. Based on a theoretical framework, we use micro data to estimate the wage-participation elasticity in urban Mexico. Consistency between the selectivity-adjusted wages and the multinomial participation equations is achieved via a two-step estimation procedure following Lee (1983). We use the results of our model to test and quantify three hypotheses explaining recent increases in female labor participation in urban mexico. Our results show that the observed 12 percent increase in female labor participation in mexico between 1994 and 2000 is explained by the combination of a negative income shock caused by the 1994-1995 participation; wage differentiaeso crisis, the increase in expected wages taking place in the manufacturing sector during the post- North American Free Trade Agreement (NAFTA) period, and a reduction in female reservation wage.


    A RISK AUGMENTED MINCER EARNINGS EQUATION? TAKING STOCK

    Joop Hartog
    University of Amsterdam

    Abstract. We survey the literature on the Risk Augmented Mincer equation that seeks to estimate the compensation for uncertainty in the future wage to be earned after completing an education. There is wide empirical support for the predicted positive effect of wage variance and the negative effect of wage skew. We discuss robustness of the findings across specifications, potential bias from unobserved heterogeneity and selectivity and consider the core issue of students’ information on benefits from education.


    WORKERS' MOBILITY AND THE RETURN TO EDUCATION, EVIDENCE FROM PUBLIC AND PRIVATE SECTORS

    Yuval Mazar
    Bank of Israel

    Abstract. This chapter examines whether changes in return to education affect workers’ mobility between jobs. Employee panel data are used to study staff movement from the public sector to the private sector or vice versa from 1995 to 2005. It is found that in line with the situation in other advanced economies, the wage structure in the public sector in Israel is more compressed than that in the private sector, for employees with similar characteristics and in general, and that the difference widened during the period reviewed. Hence, the findings support the contention that the public sector compensates employees less for their skills than does the private sector. In addition, it is found that during that period the return to education increased in the private sector by about 1 percentage point more than in the public sector. In an analysis of those who switched from one sector to the other, our findings imply that if the return to education changed at the same rate in both sectors, the probability of highly educated workers moving from the public sector to the private sector would be 5 percent lower, and the probability of highly educated workers moving from the private sector to the public sector would be 2 percent higher.


    FORGONE EARNINGS FROM SMOKING: EVIDENCE FOR A DEVELOPING COUNTRY

    Michael Lokshin
    World Bank

    Kathleen Beegle
    World Bank

    Abstract. This chapter estimates the negative effect of smoking on earnings in the context of a developing country. Using data from the 2005 Albania Living Standards Measurement Survey, models are estimated by parametric and semi-parametric methods to account for the effect of observable and unobservable characteristics that could affect individual smoking decisions and earnings. Information on the smoking behaviour of parents is used to address the endogeneity of the smoking decision. The results show that, after controlling for observed individual characteristics and parental education and taking into account unobserved heterogeneity in personal characteristics, smoking is found to have a substantial negative impact on earnings. The main results are robust to a range of alternative specifications.On average, smokers’ earnings are 19-23 percent lower than the earnings of similar non-smokers.


    EXERTED EFFORT AND PUBLIC POLICY TOWARDS CONTRACTED TEMPORARY MIGRATION

    Gil S. Epstein
    Bar-Ian University

    Alessandra Venturini
    University of Turin

    Abstract. Temporary and circular migration programs have been devised by many destination countries and supported by the European Commission as a policy to reduce welfare and social costs of immigration in destination countries. In this chapter, we present an additional reason for proposing temporary migration policies based on the characteristics of the foreign labor-effort supply. The level of effort exerted by migrants, which decreases over their duration in the host country, positively affects production, real wages, and capital owners’ profits. We show that the acceptance of job offers by migrants results in the displacement in employment of national workers. However, it increases the workers’ exertion, decreases prices, and thus can counter anti-immigrant voter sentiment. Therefore, the favorable sentiment of the capital owners and the local population toward migrants may rise when temporary migration policies are adopted.


    MIGRANT NETWORKS, MIGRANT SELECTION, AND HIGH SCHOOL GRADUATION IN MEXICO

    Alfonso Miranda
    Institute of Education, University of London

    Abstract. This chapter enquires whether family migration experience affects the probability of high school graduation of children once unobserved heterogeneity is properly accounted for. Bivariate dynamic random effects probit models for cluster data are estimated to control for the potential endogeneity of education and migration outcomes of elder members of a family in a regression for the education and migration of younger children. Correlation of unobservables across migration and education decisions as well as within groups of individuals such as the family are explicitly modeled. Results show that children from households headed by a migrant are less likely to graduate from high school than children from households headed by a non-migrant. However, as the number of migrants in the family increase, a larger number of migrants in the family is associated with a higher probability of graduation from high school in Mexico. Negative migrant selection in unobservables is detected.


    IN-WORK TRANSFERS IN GOOD TIMES AND BAD: SIMULATIONS FOR IRELAND

    Olivier Bargain
    University College Dublin

    Karina Doorley
    University College Dublin

    Abstract. In-work transfers are often seen as a good trade-off between redistribution and efficiency as they alleviate poverty among low-wage households, while increasing financial incentives to work. In the context of the recent economic downturn, they have been advocated to offset the disincentive effect of wage cuts and to cushion the negative redistributive impact of earnings losses and cuts in the minimum wage. We study this double effect for Ireland, a country deeply affected by the economic crisis, and for which existing in-work support policies are of limited scope. The employment and poverty effects of alternative policies are analysed thanks to counterfactual simulations built using a micro-simulation model, the Living in Ireland Survey 2001 and labour supply estimations. We focus on an extension of the existing scheme, the Family Income Supplement and its replacement by the refundable tax credit in force in the United Kingdom.


    EXPLORING THE DETERMINANTS OF EMPLOYMENT IN EUROPE: THE ROLE OF SERVICES

    Roberta Serafini
    European Central Bank

    Melanie Ward
    European Central Bank

    Abstract. Over recent decades both Europe and the United States have experienced an increase in the share of service-related jobs in total employment. Although narrowing in all European countries, a significant gap in the share of service jobs relative to the United States still persists. The aim of the chapter is to identify the main drivers of the service sector employment share in the EU-15 as well as its gap relative to the United States. The analysis is carried out for the aggregate service sector, 4 sub-sectors and 12 service sector branches over the period 1970-2003. We find some evidence to support the hypothesis that a number of labour market regulations - such as union density and the degree of centralisation of wage bargaining - together with the mismatch between workers’ skills and job vacancies, have affected Europe’s ability to adjust efficiently to the reallocation of labour from manufacturing into services. Furthermore, we find significant heterogeneity in the relative weight of the various determinants of the employment share across sub-sectors and branches.


  7. About Research in Labor Economics

    The series Research in Labor Economics began in 1977 by Ronald Ehrenberg and JAI Press. Solomon Polachek has been editor since 1995. Since 2006, the series has benefited from affiliating with the Institute for the Study of Labor (IZA) and has extended to two volumes per year. The first volume remains in the tradition of the series with empirical and theoretical papers in labor economics. The second volume, which is edited by the Institute of the Study of Labor (IZA) is more policy-oriented, in the spirit of IZA's focus on policy aspects of labor economics. The series is published by Emerald Group Publishing Limited.

    Each volume in this book series consists of a collection of refereed research papers written by top economists in the field of labor economics.
    Recent volumes have hosted papers by D. Acemoglu, J. D. Angrist, D. Card, H.Farber, A. Krueger, E. Lazear, G. Field, and J. Mincer, among others.

    Editorial Objectives:
    Research in Labor Economics presents important new research in labor economics related particularly to worker well-being covering themes such as work and worker welfare, earnings distribution, skills, training, public policy, discrimination and migration.

    Key Benefits:
    Research in Labor Economics is one of the major references for all academics and researchers in labor economics and is important reading for government policy makers and think-tanks.

    The series:

    Key Audiences:
    Research in Labor Economics invites all academics and researchers in the field of labor economics to submit their work for consideration in the series. An online submission form is now available. Submissions for special issues and symposia are also considered.

    Coverage:
    The series encourages full length articles in all aspects of labor economics. Coverage includes, but it is not restricted to:


  8. The Editorial Team

    The Series Editor: Solomon Polachek See IZA's web page: http://www.iza.org/home/polachek

    Co-Editor: Konstantinos Tatsiramos See IZA's web page: http://www.iza.org/home/tatsiramos

    Commissioning Editor: Emma Whitfield ewhitfield@emeraldinsight.com

    Assistant Commissioning Editor: Gareth Bell gbell@emeraldinsight.com

    Published by: Emerald Group Publishing Limited
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