
Evidence-based Policy Making in Labor Economics
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Alexander Kritikos is Professor of Economics at the DIW Berlin, University of Potsdam, and IZA, Germany Olga Nottmeyer is Editor of the IZA World of Labor Project
Content
- cover
- Contents
- Acknowledgments
- Competing interests
- About IZA
- Editorial board
- INTRODUCTION
- SECTION I: Program evaluation
- The effects of wage subsidies for older workers
- Wage subsidies to encourage employers to hire older workers are often ineffective
- Bernhard Boockmann
- Can hiring subsidies benefit the unemployed?
- Hiring subsidies can be a very cost-effective way of helping the unemployed, but only when they are carefully targeted
- Alessio J. G. Brown
- Is unconditional basic income a viable alternative to other social welfare measures?
- Countries give basic education and health care to everyone, and for good reasons-why not basic income?
- Ugo Colombino
- Who benefits from firm-sponsored training?
- Firm-sponsored training benefits both workers and firms through higher wages, increased productivity, and innovation
- Benoit Dostie
- Does vocational training help young people find a (good) job?
- Systems combining structured learning on the job with classroom training can ease youth unemployment
- Werner Eichhorst
- Should unemployment insurance cover partial unemployment?
- Time-limited benefits may yield significant welfare gains and help underemployed part-time workers move to full-time employment
- Susanne Ek Spector
- Should severance pay be consistent for all workers?
- Single, open-ended contracts with severance pay smoothly rising with seniority can decrease both unemployment and job losses
- J. Ignacio García Pérez
- Is training effective for older workers?
- Training programs that meet the learning needs of older workers can improve their employability
- Matteo Picchio
- Active labor market policies and crime
- Unemployment increases crime among youth, while active labor market policies can mitigate the problem
- Torben Tranaes
- SECTION II: Behavioral and personnel economics
- High involvement management and employee well-being
- Giving employees more discretion at work can boost their satisfaction and well-being
- Petri Böckerman
- What makes a good job? Job quality and job satisfaction
- Job satisfaction is important to well-being, but intervention may be needed only if markets are impeded from improving job quality
- Andrew E. Clark
- Market competition and executive pay
- Increased competition affects the pay incentives firms provide to their managers and may also affect overall pay structures
- Priscila Ferreira
- Goal setting and worker motivation
- Individual work goals can increase a worker's performance, but they need to be chosen wisely
- Sebastian J. Goerg
- Performance-related pay and labor productivity
- Do pay incentives and financial participation schemes have an effect on a firm's performance?
- Claudio Lucifora
- Happiness as a guide to labor market policy
- Happiness is key to a productive economy, and a job is key to individual happiness
- Jo Ritzen
- Are workers motivated by the greater good?
- Workers care about employers' social causes, but the public sector does not attract particularly motivated employees
- Mirco Tonin
- SECTION III: Migration
- Language and culture as drivers of migration
- Linguistic and cultural barriers affect international migration flows
- Alícia Adserà
- Can immigrants ever earn as much as native workers?
- Immigrants initially earn less than natives
- the wage gap falls over time, but for many immigrant groups it never closes
- Kathryn H. Anderson
- Consequences of the obesity epidemic for immigrants
- When migrants move to countries with high obesity rates, does assimilation lead to labor market penalties and higher health care costs?
- Laura Argys
- Does return migration influence fertility at home?
- Migrants encounter different fertility norms while abroad, which they can bring back upon returning home
- Simone Bertoli
- Income of immigrants and their return
- Both low- and high-income immigrants stay for a relatively short time
- Govert E. Bijwaard
- Ethnic minority self-employment
- Poor paid employment prospects push minority workers into working for themselves, often in low-reward work
- Ken Clark
- Smart policy toward high-skill emigrants
- Many proposed policies on skilled migration do little to improve skill stocks or development outcomes, but promising options exist
- Michael A. Clemens
- Migration and families left behind
- Families that stay behind when a member migrates do not clearly benefit
- Sylvie Démurger
- Does emigration increase the wages of non-emigrants in sending countries?
- Emigration can increase the wages of non-emigrants, but may eventually lead to lower productivity and wage losses
- Benjamin Elsner
- Migrants and educational achievement gaps
- Avoiding segregation and compensating for parental disadvantage can reduce migrants' educational achievement gaps
- Horst Entorf
- Are married immigrant women secondary workers?
- Patterns of labor market assimilation for married immigrant women are similar to those for men
- Ana Ferrer
- Immigrant labor and work-family decisions of native-born women
- As immigration lowers childcare and housework costs, native-born women alter their work and fertility decisions
- Delia Furtado
- Naturalization and citizenship: Who benefits?
- Liberalizing access to citizenship has labor market benefits for immigrants and can improve their assimilation
- Christina Gathmann
- Do minimum wages induce immigration?
- The minimum wage affects international migration flows and the internal relocation of immigrants
- Corrado Giulietti
- The value of language skills
- A common language facilitates communication and economic efficiency, but linguistic diversity has economic and cultural value too
- Gilles Grenier
- Setting policy on asylum: Has the EU got it right?
- Harmonizing asylum policies, a noble goal, does not produce the best outcomes for refugees or host country populations
- Tim Hatton
- What drives the language proficiency of immigrants?
- Immigrants differ in their language proficiency along a range of characteristics
- Ingo E. Isphording
- Impact of remittances on fertility
- Remittances are closely linked to household fertility choices with consequences at the community and country level
- George S. Naufal
- Intermarriage and the economic success of immigrants
- Who is the driving factor-the native spouses or the immigrants themselves?
- Olga K. Nottmeyer
- Occupational choice of return migrants
- Migrant-sending countries can significantly benefit from the type of occupation chosen by return migrants
- Matloob Piracha
- Cross-border migration and travel: A virtuous relationship
- International migration boosts travel and vice versa, bringing economic benefits but challenging public policy
- Jacques Poot
- Does corruption promote emigration?
- Corruption is a driving force of emigration, especially for high-skilled workers, but also for other workers
- Friedrich Schneider
- Retiree migration and intergenerational conflict
- Retiree migration can have economic benefits but can also lead to intergenerational conflict in education spending
- Mehmet S. Tosun
- Who benefits from return migration to developing countries?
- Despite returnees being a potential resource, not all developing countries benefit from their return
- Jackline Wahba
- Should countries auction immigrant visas?
- Selling the right to immigrate to the highest bidders would allocate visas efficiently but might raise ethical concerns
- Madeline Zavodny
- SECTION IV: Institutions
- A flexicurity labor market during recession
- Long-term unemployment did not rise under the flexicurity model during the great recession, despite the large drop in GDP
- Torben M. Andersen
- Knowledge spillovers and future jobs
- In the future, jobs will be created by those bold enough to transform new ideas and knowledge into innovations
- David B. Audretsch
- Perverse effects of two-tier wage bargaining structures
- Two-tier wage bargaining fails to link wages more closely to productivity and increases allocative inefficiencies
- Tito Boeri
- The minimum wage versus the earned income tax credit for reducing poverty
- Enhancing the earned income tax credit would do more to reduce poverty, at less cost, than increasing the minimum wage
- Richard V. Burkhauser
- How are minimum wages set?
- Countries set minimum wages in different ways, and some countries set different wages for different groups of workers
- Richard Dickens
- The shadow economy in industrial countries
- Reducing the size of the shadow economy requires reducing its attractiveness while improving official institutions
- Dominik H. Enste
- Who owns the robots rules the world
- Workers can benefit from technology that substitutes robots or other machines for their work by owning part of the capital that replaces them
- Richard Freeman
- Should the earned income tax credit rise for childless adults?
- The earned income tax credit raises income and work incentives among low-income parents but little goes to adults without children
- Harry J. Holzer
- Do works councils raise or lower firm productivity?
- Works councils can have a positive impact on firm productivity, but only when specific conditions are in place
- Olaf Hübler
- The decline in job-to-job flows
- An aging workforce and declining entrepreneurship explain the decline in job-to-job flows only partially
- Henry R. Hyatt
- Wage compression and the gender pay gap
- Wage-setting institutions narrow the gender pay gap but may reduce employment for some women
- Lawrence M. Kahn
- Offshoring and the migration of jobs
- Offshoring has little net effect on domestic employment, while pushing domestic workers toward more complex jobs
- Gianmarco Ottaviano
- Does it pay to be a public-sector employee?
- Contrary to common belief, the long-term public-private pay gap is negligible in many countries
- Fabien Postel-Vinay
- Do minimum wages stimulate productivity and growth?
- Minimum wage increases fail to stimulate growth and can have a negative impact on vulnerable workers during recessions
- Joseph J. Sabia
- Employment effects of longer working hours
- Extending work hours may reduce employment in the short term but may increase it in the long term if hourly pay remains constant
- Thorsten Schank
- Institutional long-term care and government regulation
- Focus on family and portable allowances to lower the costs of institutional long-term care while monitoring its quality
- Elena Stancanelli
- Unions and investment in intangible capital
- When workers and firms cannot commit to long-term contracts and capital investments are sunk, union power can reduce investment
- Giovanni Sulis
- Employment and wage effects of extending collective bargaining agreements
- Extending provisions of collective contracts to all workers in an industry or region may lead to employment losses
- Ernesto Villanueva
- Innovation and employment
- Technological unemployment is not inevitable-some innovation creates jobs, and some job destruction can be avoided
- Marco Vivarelli
- SECTION V: Transition and emerging economies
- Latent entrepreneurship in transition economies
- Some entrepreneurs and would-be entrepreneurs face financial and bureaucratic barriers to starting a business
- Hilal Atasoy
- New firms entry, labor reallocation, and institutions in transition economies
- In transition economies, better property rights protection and rule of law enforcement can boost job creation and growth
- Randolph L. Bruno
- Skill mismatch and overeducation in transition economies
- Substantial skill shortages coexist with overeducation, affecting both young and old workers
- Olga Kupets
- Migrant well-being after leaving transition economies
- Evidence is mixed on whether quality of life improves for migrants from post-socialist economies
- Milena Nikolova
- Alcoholism and mortality in Eastern Europe
- Excessive drinking is the main cause of high male mortality rates, but the problem can be addressed
- Evgeny Yakovlev
- SECTION VI: Development
- Entrepreneurship for the poor in developing countries
- Well-designed entrepreneurship programs show promise for improving earnings and livelihoods of poor workers
- Yoonyoung Cho
- Trade, foreign investment, and wage inequality in developing countries
- Exposure to foreign trade raises the skill premium in countries with a large stock of educated workers and reduces it in others
- Alessandro Cigno
- The welfare impact of rising food prices
- The welfare impact of rising food prices differs for net food consumers and net producers
- Ralitza Dimova
- Are social security programs progressive?
- Whether social security programs reduce inequality is not related to the amount they redistribute
- Alvaro Forteza
- Policies to support women's paid work
- Policies in developing countries to improve women's access to paid work should also consider child welfare
- Gianna Claudia Giannelli
- Collective bargaining in developing countries
- Negotiating work rules at the firm level instead of the industry level could lead to productivity gains
- Carlos Lamarche
- Pensions, informality, and the emerging middle class
- Getting the incentives right for firms and workers should be the priority in the labor formalization agenda
- Angel Melguizo
- SECTION VII: Environment
- Environmental regulations and business decisions
- Environmental regulations impose costs on firms, affecting productivity and location but providing significant health benefits
- Wayne B. Gray
- SECTION VIII: Education and human capital
- Slavery, racial inequality, and education
- Historical slavery may be a driver of human capital and its unequal racial distribution, with implications for education and income inequalities
- Graziella Bertocchi
- The promises and pitfalls of universal early education
- Universal early education can be beneficial, and more so for the poor, but quality matters
- Elizabeth U. Cascio
- Impact of bilingual education on student achievement
- Language development programs should focus on quality rather than the language in which instruction is provided
- Aimee Chin
- Early-life medical care and human capital accumulation
- Medical care and public health interventions in early childhood may improve human capital accumulation as well as child health
- N. Meltem Daysal
- The importance of informal learning at work
- On-the-job learning is more important for workers' human capital development than formal training
- Andries de Grip
- How effective are financial incentives for teachers?
- Linking teacher pay to student performance has become popular, but evidence on its effectiveness is mixed
- Scott A. Imberman
- Immigrants in the classroom and effects on native children
- Having immigrant children in the classroom may sometimes, but not always, harm educational outcomes of native children
- Peter Jensen
- Class size: Does it matter for student achievement?
- Smaller classes are often associated with increased achievement, but the evidence is far from universal
- Christopher Jepsen
- Sports, exercise, and labor market outcomes
- Increasing participation in sports and exercise can boost productivity and earnings
- Michael Lechner
- Youth sports and the accumulation of human capital
- Positive contributions to cognitive and non-cognitive skills justify public support of youth sports
- Michael A. Leeds
- University dropouts and labor market success
- Dropping out of university can be more advantageous than not having enrolled in university at all
- Sylke V. Schnepf
- The educational effects of school start times
- Delaying secondary school start times can be a cost-effective policy to improve students' grades and test scores
- Teny Maghakian Shapiro
- The impacts of shortening secondary school duration
- Shortening secondary school duration may increase the skilled workforce in aging societies
- Stephan L. Thomsen
- The role of preschool in reducing inequality
- Preschool improves child outcomes, especially for disadvantaged children
- Jane Waldfogel
- Do higher levels of education and skills in an area benefit wider society?
- Education benefits individuals, but the societal benefits are likely even greater
- John V. Winters
- The boom in university graduates and the risk of underemployment
- Better information on university quality may reduce underemployment and overeducation in developing countries
- Gustavo A. Yamada
- SECTION IX: Demography, family, and gender
- Intergenerational income persistence
- Measures of intergenerational persistence can be indicative of equality of opportunity, but the relationship is not clear cut
- Jo Blanden
- Fertility postponement and labor market outcomes
- Postponed childbearing increases women's labor market attachment but may reduce overall fertility
- Massimiliano Bratti
- Relative deprivation and individual well-being
- Low status and a feeling of relative deprivation are detrimental to health and happiness
- Xi Chen
- Childcare choices and child development
- Generous parental leave and affordable, high-quality childcare can foster children's abilities
- Daniela Del Boca
- Health effects of job insecurity
- Job insecurity adversely affects health, but fair workplace practices and employee participation can mitigate the effects
- Francis Green
- Do joint custody laws improve family well-being?
- Joint child custody laws affect not only divorced families but intact families as well
- Martin Halla
- Sexual harassment in the workplace
- Despite being illegal, costly, and an affront to dignity, sexual harassment is pervasive and challenging to eliminate
- Joni Hersch
- Pension reform and couples' joint retirement decisions
- The success of policies raising the retirement age depends on people's responsiveness to changes in pension eligibility
- Laura Hospido
- Beauty pays but does investment in beauty?
- Despite the large returns from an attractive appearance, the cost-effectiveness of investment in beauty is ambiguous
- Soohyung Lee
- The quantity-quality fertility-education trade-off
- Policies to reduce fertility in developing countries generally boost education levels, but only slightly
- Haoming Liu
- Trade liberalization and gender inequality
- Can free-trade policies help to reduce gender inequalities in employment and wages?
- Janneke Pieters
- Does it pay to be beautiful?
- Physically attractive people can earn more, particularly in customer-facing jobs, and the rewards for men are higher than for women
- Eva Sierminska
- The determinants of housework time
- Boosting the efficiency of household production could have large economic effects
- Leslie S. Stratton
- SECTION X: Data and methods
- Google search activity data and breaking trends
- Google search activity data are an unconventional survey full of unbiased, revealed answers in need of the right question
- Nikolaos Askitas
- Matching as a regression estimator
- Matching avoids making assumptions about the functional form of the regression equation, making analysis more reliable
- Dan A. Black
- Measuring the cost of children
- Knowing the real cost of children is important for crafting better economic policy
- Olivier Donni
- Evaluating the efficiency of public services
- Differences in efficiency in public services can offer clues about good practice
- Geraint Johnes
- The challenges of linking survey and administrative data
- Combining survey and administrative data is growing in popularity, even though data access is still highly restricted
- Steffen Künn
- The use of natural experiments in migration research
- Data on rapid, unexpected refugee flows can credibly identify the impact of migration on native workers' labor market outcomes
- Semih Tumen
- Measuring disincentives to formal work
- Does formal work pay? Synthetic measurements of taxes and benefits can help identify incentives and disincentives to formal work
- Michael Weber
- Counting on count data models
- Quantitative policy evaluation can benefit from a rich set of econometric methods for analyzing count data
- Rainer Winkelmann
- AUTHOR INDEX
- SUBJECT INDEX
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