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Displaying Results 1 - 25 of 29 on page 1 of 2
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A good time to stay out? Strikes and the business cycle
(2008)
Devereux, Paul J.; Hart, Robert A.
A good time to stay out? Strikes and the business cycle
(2008)
Devereux, Paul J.; Hart, Robert A.
Abstract:
In this paper, we compile a unique historical dataset that records strike activity in the British engineering industry from 1920 to 1970. These data have the advantage of containing a fairly homogenous set of companies and workers, covering a long period with varying labour market conditions, including information that enables the addition of union and company fixed effects, and providing geographical detail that allows a district-level analysis that controls for year and seasonal effects. We study the cyclicality of strike durations, strike incidence, and strike outcomes and distinguish between pay and non-pay strikes. Like the previous literature, we find evidence that strikes over pay have countercyclical durations. However, in the post-war period, the magnitude of this effect is much reduced when union and firm fixed effects are included. These findings suggest that it is important when studying strike durations to take account of differences in the composition of companies and ...
http://hdl.handle.net/10197/736
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Can education compensate for low ability? Evidence from British data (version 3.0)
(2008)
Denny, Kevin; O'Sullivan, Vincent
Can education compensate for low ability? Evidence from British data (version 3.0)
(2008)
Denny, Kevin; O'Sullivan, Vincent
Abstract:
This paper uses cross section data to investigate whether education and ability are substitutes or complements in the determination of earnings. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for unobserved ability.
http://hdl.handle.net/10197/170
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Can education compensate for low ability? Evidence from British data (version 3.1)
(2009)
Denny, Kevin; O'Sullivan, Vincent
Can education compensate for low ability? Evidence from British data (version 3.1)
(2009)
Denny, Kevin; O'Sullivan, Vincent
Abstract:
This paper uses cross section data to investigate whether education and ability are substitutes or complements in the determination of earnings. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for unobserved ability. This paper forms part of the Policy Evaluation Program at the Institute for the Study of Social Change (ISSC) at UCD.
http://hdl.handle.net/10197/942
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Can education compensate for low ability? Evidence from British data (version 3.2)
(2009)
Denny, Kevin; O'Sullivan, Vincent
Can education compensate for low ability? Evidence from British data (version 3.2)
(2009)
Denny, Kevin; O'Sullivan, Vincent
Abstract:
This paper uses cross section data to investigate whether the returns to education vary with the level of ability. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for unobserved ability. This paper forms part of the Policy Evaluation Program at the Institute for the Study of Social Change (ISSC) at UCD.
http://hdl.handle.net/10197/943
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Competition, trade and wages
(2009)
Neary, J. Peter
Competition, trade and wages
(2009)
Neary, J. Peter
Abstract:
I briefly review the empirical evidence in the trade and wages debate, which overwhelmingly rejects the Heckscher-Ohlin explanation for recent increases in OECD skill premia. I then argue that the same evidence is also difficult to reconcile in general equilibrium with the view that exogenous skill-biased technological progress is the sole culprit. Finally, I present a model of oligopolistic competition which is more consistent with the evidence. Removing quantitative import constraints (a metaphor for increased foreign competition) encourages both home and foreign firms to invest more aggressively, raising their demand for skilled labour even at unchanged relative wages.
The Economic and Social Research Council (ESRC)
http://hdl.handle.net/10197/1277
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Dispersion in the economic return to schooling
(2009)
Harmon, Colm; Hogan, Vincent (Vincent Peter); Walker, Ian
Dispersion in the economic return to schooling
(2009)
Harmon, Colm; Hogan, Vincent (Vincent Peter); Walker, Ian
Abstract:
We extend the standard human capital earnings function to include dispersion in the return to schooling by treating the return as a random coefficient. If the rapid expansion in participation in higher education has been brought about by dipping further into the ability distribution, we should observe a rise in the variance of returns. Alternatively, if the expansion has come about through relaxing credit constraints then we might expect to see an increase in both the mean and variance of returns. Our estimates suggest that the variance in returns has not risen over time.
http://hdl.handle.net/10197/1101
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Dispersion in the economic return to schooling
(2009)
Harmon, Colm; Hogan, Vincent (Vincent Peter); Walker, Ian
Dispersion in the economic return to schooling
(2009)
Harmon, Colm; Hogan, Vincent (Vincent Peter); Walker, Ian
Abstract:
In this paper we extend the standard human capital earnings function to include dispersion in the rate of return to schooling by treating the return as a random coefficient. One motivation is that if the increase in supply of skilled workers has been brought about by dipping further into the ability distribution. Alternatively if the expansion in post-compulsory education comes about through relaxed credit constraints then we might expect this to increase average ability in the pool of educated workers. Either event might lead to a rise in the variance in returns. Based on a sample of data from the United Kingdom our estimates suggest that neither the mean nor the dispersion in returns to schooling has altered significantly over time. This is consistent with educational expansion not leading to a disproportionate inflow of low ability individuals into the system.
http://hdl.handle.net/10197/929
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Earnings inequality and transition : a regional analysis of Poland
(2009)
Sibley, Christopher W.; Walsh, Patrick P.
Earnings inequality and transition : a regional analysis of Poland
(2009)
Sibley, Christopher W.; Walsh, Patrick P.
Abstract:
In this paper we estimate the impact of transition on earnings inequality using data across Polish regions 1994-1997. Our central result is that earnings inequality is higher in regions that are more advanced in restructuring (higher labour productivity/job reallocation rates), controlling for unobservable regional fixed effects. At the national level rapid growth does not seem to be associated with earnings inequality. This aggregate relationship is shown to be misleading. The positive relationship between earnings inequality and the stage of transition across regions remains when we apply an infrastructure-deficit based instrumental variable approach to allow for reverse causality.
http://hdl.handle.net/10197/990
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Estimates of the economic return to schooling for the United Kingdom
(2008)
Walker, Ian; Harmon, Colm
Estimates of the economic return to schooling for the United Kingdom
(2008)
Walker, Ian; Harmon, Colm
http://hdl.handle.net/10197/647
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Estimating the return to college in Britain using regression and propensity score matching
(2011)
Fan, Wen
Estimating the return to college in Britain using regression and propensity score matching
(2011)
Fan, Wen
Abstract:
College graduates tend to earn more than non-graduates but it is difficult to ascertain how much of this empirical association between wages and college degree is due to the causal effect of a college degree and how much is due to unobserved factors that influence both wages and education (e.g. ability). In this paper, I use the 1970 British Cohort Study to examine the college premium for people who have a similar ability level by using a restricted sample of people who are all college eligible but some never attend. Compared to using the full sample, restricting the sample to college-eligible reduces the return to college significantly using both regression and propensity score matching (PSM) estimates. The finding suggests the importance of comparing individuals of similar ability levels when estimating the return to college.
Not applicable
ti,ke,-SB.16/09/2011
http://hdl.handle.net/10197/3234
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Foreign competition and wage inequality
(2009)
Neary, J. Peter
Foreign competition and wage inequality
(2009)
Neary, J. Peter
Abstract:
I argue that increased foreign competition can affect technical choice and skill differentials even when actual imports do not rise significantly. I present a model of General Oligopolistic Equilibrium ("GOLE") in which a reduction in import barriers (whethe technological or policy-imposed) encourages more strategic investment by incumbent firms. The predictions accord with many of the stylised facts: higher skill premia; higher ratios of skilled to unskilled workers employed in all sectors and throughout the economy; little change in import volumes or prices; and rapid technological progress with rather little change in total factor productivity. (Presidential address to the International Economics and Finance Society, presented at the AEA/ASSA meetings, New Orleans, January 2001.)
The Economic and Social Research Council (ESRC)
http://hdl.handle.net/10197/1270
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Is informality bad? Evidence from Brazil, Mexico and South Africa
(2010)
Bargain, Olivier; Kwenda, Prudence
Is informality bad? Evidence from Brazil, Mexico and South Africa
(2010)
Bargain, Olivier; Kwenda, Prudence
Abstract:
The informal sector plays an important role in the functioning of labor markets in emerging economies. To characterize better this highly heterogeneous sector, we conduct a distributional analysis of the earnings gap between informal and formal employment in Brazil, Mexico and South Africa, distinguishing between dependent and independent workers. For each country, we use rich panel data to estimate fi xed effects quantile regressions to control for (time-invariant) unobserved heterogeneity. The dual nature of the informal sector emerges from our results. In the high-tier segment, self-employed workers receive a signi cant earnings premium that may compensate the bene fits obtained in formal jobs. In the lower end of the earnings distribution, both informal wage earners and independent (own account) workers face signi cant earnings penalties vis-à-vis the formal sector. Yet the dual structure is not balanced in the same way in all three countries. Most of the self-employment carries...
http://hdl.handle.net/10197/2633
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Is there an informal employment wage penalty? Evidence from South Africa
(2008)
Walsh, Frank; Badaoui, Eliane; Strobl, Eric
Is there an informal employment wage penalty? Evidence from South Africa
(2008)
Walsh, Frank; Badaoui, Eliane; Strobl, Eric
Abstract:
We estimate the wage penalty associated with working in the South African informal sector. To this end we use a rich data set on non-self employed males that allows one to accurately distinguish workers employed in the informal sector from those employed in the formal sector and link individuals over time. Implementing various econometric approaches we find that there is a gross wage penalty of a little over 18 per cent for working in the informal sector. However, once we reduce our sample to a group for which we can reasonably calculate earnings net of taxes and control for time invariant unobservables the wage penalty disappears.
http://hdl.handle.net/10197/182
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Labour Market Discrimination on the Basis of Health: An Application to UK Data
(2015)
Madden, David (David Patrick)
Labour Market Discrimination on the Basis of Health: An Application to UK Data
(2015)
Madden, David (David Patrick)
Abstract:
This paper carries out an analysis of wage discrimination on the basis of health on UK data with a number of important modifications. First we control for selection into health status. Second the direct effect of health upon productivity is accounted for and third, we examine discrimination with regard to participation as well as wages. The question of selection into health status is found to be of little empirical importance but taking account of the direct impact of health upon productivity leads to a fall in measured discrimination. The paper finds similar results with regard to participation. We also examine whether these effects differ across age and also test for the statistical significance of discrimination.
http://hdl.handle.net/10197/6827
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Monotonicity and the Roy model
(2010)
Chevalier, Arnaud; Lanot, Gauthier
Monotonicity and the Roy model
(2010)
Chevalier, Arnaud; Lanot, Gauthier
Abstract:
In this note we study the implications on a bivariate normal Roy Model of two sets of monotonicity hypotheses proposed recently by Manski and Pepper (2000). In that simple context, we show that these hypotheses imply strong restrictions on the correlations structure between the decision and the rewards.
http://hdl.handle.net/10197/1858
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On the Firms’ Decision to Hire Academic Scientists
(2018)
Martínez, Catalina; Parlane, Sarah
On the Firms’ Decision to Hire Academic Scientists
(2018)
Martínez, Catalina; Parlane, Sarah
Abstract:
Firms hire scientists to increase their absorptive capacity and generate new knowledge and innovations. In this paper, we analyse a firm’s optimal contracting decisions when scientists have differing tastes for science. The contracted scientist engages in multitasking following her own academic agenda and the firm’s agenda and each task delivers distinct outcomes. Our setting disentangles the productivity and absorptive capacity effects for the firm as well as the preference and opportunity costeffects for the scientists. The productivity effect refers to a scientist’s contribution to profits by improving efficiency or by developing new products. The absorptive capacity effect relates to the ability of the hired scientist to assimilate the knowledge produced elsewhere for the benefit of the firm. The preference effect reflects the fact that scientists, unlike other knowledge workers, have a taste for science and accept lower wages when allowed to pursue a personal academic agenda. T...
http://hdl.handle.net/10197/9186
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Real wage cyclicality of job stayers, within-company job movers, and between-company job movers
(2008)
Devereux, Paul J.; Hart, Robert A.
Real wage cyclicality of job stayers, within-company job movers, and between-company job movers
(2008)
Devereux, Paul J.; Hart, Robert A.
Abstract:
Using the British New Earnings Survey Panel Data (NESPD) for the period 1975 to 2001 we estimate the wage cyclicality of job stayers (those remaining within single jobs in a given company), within company job movers, and between company job movers. We also examine how the proportion of internal and external job moves varies over the business cycle. We find that the wages of internal movers are slightly more procyclical and wages of external movers considerably more procyclical than those of stayers. Notwithstanding, a decomposition shows that in Britain, wage cyclicality arises almost entirely from the procyclicality of wages for job stayers, with across- and within-firm mobility playing a lesser role. Thus, there is little evidence for rigid wage models that imply that employers use changes in job titles as a means of adjusting wages to the business cycle. We also show that the distinctions between private and public sectors and between workers covered and uncovered by collective a...
http://hdl.handle.net/10197/745
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Returns to basic skills in Central & Eastern Europe : a semi parametric approach
(2008)
Denny, Kevin; Doyle, Orla
Returns to basic skills in Central & Eastern Europe : a semi parametric approach
(2008)
Denny, Kevin; Doyle, Orla
Abstract:
This paper uses semi-parametric econometric techniques to investigate the relationship between basic skills and earning in three post-communist countries: the Czech Republic, Hungary and Slovenia using the IALS dataset. While the large increases in the returns to education in the new market economies has been well documented in the literature, no study to date has examined the impact of basic skills and schooling on income. Estimating a Mincer human capital model we find that including a measure of basic skills reduces the returns to education. In addition, using a partial linear model in which log earnings is linear in schooling, but is an arbitrary function of basic skills, we find that this relationship is not well described by the common assumption of linearity at the tails of the distribution.
http://hdl.handle.net/10197/97
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The formal sector wage premium and firm size
(2016)
El Badaoui, Eliane; Strobl, Eric; Walsh, Frank
The formal sector wage premium and firm size
(2016)
El Badaoui, Eliane; Strobl, Eric; Walsh, Frank
Abstract:
We show theoretically that when larger firms pay higher wages and are more likely to be caught defaulting on labor taxes, then large-high wage firms will be in the formal and small-low wage firms will be in the informal sector. The formal sector wage premium is thus just a firm size wage differential. Using data from Ecuador we illustrate that firm size is indeed the key variable determining whether a formal sector premium exists.
http://hdl.handle.net/10197/8052
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The formal sector wage premium and firm size for self-employed workers
(2012)
Bargain, Olivier; Badaoui, Eliane; Kwenda, Prudence; Strobl, Eric; Walsh, Frank
The formal sector wage premium and firm size for self-employed workers
(2012)
Bargain, Olivier; Badaoui, Eliane; Kwenda, Prudence; Strobl, Eric; Walsh, Frank
Abstract:
We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in self-employment only when they cannot find a salaried job. For these workers self-employment is a secondary/informal form of employment. The Burdett and Mortensen (1998) equilibrium search model is used for illustration as a special case of our more general framework. Empirical evidence from Mexico is provided and demonstrates that firm size wage effects for employees and self-employed workers are broadly consistent with the model.
Not applicable
ab - TS 27.03.12
http://hdl.handle.net/10197/3719
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The impacts of education and training on the labour market experiences of young adults
(2008)
Denny, Kevin; Harmon, Colm
The impacts of education and training on the labour market experiences of young adults
(2008)
Denny, Kevin; Harmon, Colm
Abstract:
This paper uses pooled cross-section data on recent school leavers in Ireland to model the determinants of labour market status and wages for young adults. Firstly we use a multinomial logit model to analyze whether individuals exit school to employment, unemployment or higher education. Family background is an important predictor for participation in higher education reflecting the degree of rationing in the system. The level of educational attainment influences the probability of entering higher education or employment. The estimates for earnings functions show large differences across gender with males being rewarded significantly higher. The returns to training are positive though biased upwards by sample selection particularly for females.
European Commission, TSER programme PL980182; University College Dublin. Faculty of Commerce
http://hdl.handle.net/10197/731
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The informal sector wage gap : new evidence using quantile estimations on panel data
(2010)
Bargain, Olivier; Kwenda, Prudence
The informal sector wage gap : new evidence using quantile estimations on panel data
(2010)
Bargain, Olivier; Kwenda, Prudence
Abstract:
This paper provides new evidence on the wage gap between informal and formal salary workers in South Africa, Brazil and Mexico. We use rich datasets that allow us to de fine informality in a relatively comparable fashion across countries. We compute precise wage differentials by accounting for taxes paid in the formal sector. For each country, we analyze how the sectoral wage gap varies within groups, between groups and over time. To account for unobserved heterogeneity, we use large (unbalanced) panels to estimate fixed effects models at the mean and at different points of the wage distribution. We fi nd that unobserved heterogeneity explains a large part of the (conditional) wage gap. The remaining informal sector wage penalty is large in the lower part of the distribution but almost disappears at the top. The penalty primarily concerns young workers and is found to be procyclical. We carefully investigate the robustness of these results and discuss their policy implications as w...
http://hdl.handle.net/10197/2601
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The informal sector wage gap : new evidence using quantile estimations on panel data
(2010)
Bargain, Olivier; Kwenda, Prudence
The informal sector wage gap : new evidence using quantile estimations on panel data
(2010)
Bargain, Olivier; Kwenda, Prudence
Abstract:
This paper provides new evidence on the wage gap between informal and formal salary workers in South Africa, Brazil and Mexico. We use rich datasets that allow us to define informality in a relatively comparable fashion across countries. We compute precise wage differentials by accounting for taxes paid in the formal sector. For each country, we analyze how the sector wage gap varies within groups, between groups and over time. To account for unobserved heterogeneity, we use large (unbalanced) panels to estimate fixed effects models at the mean and at different quantiles of the wage distribution. We find that unobserved heterogeneity explains a large part of the (conditional) wage gap. The remaining informal sector wage penalty is large in the lower part of the distribution but almost disappears at the top. The penalty primarily concerns young workers and is found to be procyclical. We carefully investigate the robustness of these results and discuss their policy implications as wel...
http://hdl.handle.net/10197/2673
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The marginal and average returns to schooling
(2010)
Harmon, Colm; Walker, Ian
The marginal and average returns to schooling
(2010)
Harmon, Colm; Walker, Ian
Abstract:
The existing literature now features many examples where log wages are linear in years of schooling and which effectively attempt to correct for least squares bias using instruments based essentially on a single variable. Two recent developments, taken together, cast some doubt on the downward bias in least squares estimates of the return to schooling that have been an important feature of the recent literature. The first is the realization that instrumental variable (IV) only estimate the effects of some treatment if the effect is the same for everyone. The second is that IV may only estimate the effect of the treatment on the individuals whose choices are affected by the instrument in question [extract]
A hard copy is available in UCD Library at GEN 330.08 IR/UNI
http://hdl.handle.net/10197/1785
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The returns to observable and unobservable skills over time : evidence from a panel of the population of Danish twins
(2010)
Bingley, Paul; Christensen, Kaare; Walker, Ian
The returns to observable and unobservable skills over time : evidence from a panel of the population of Danish twins
(2010)
Bingley, Paul; Christensen, Kaare; Walker, Ian
Abstract:
This paper provides estimates of the private financial return to education based on large samples of monozygotic (MZ) and dizygotic (DZ) twins which we obtain from Danish population registers. Our estimation exploits the fact that our data is a long panel. We show that the rising inequality, which we observe in the raw data, is due to rising returns to observable skills. Indeed, our results suggest that the inequality associated with unobservable skills appears to have fallen since the late 1980's. The fact that we have both MZs and DZs allows us to separate the rising residual variance into changes in returns to unobservables and changes in the variance in unobservables across successive cohorts. Measurement error has been a concern in the twins literature since the usual methodology is based on within-twin differences. We exploit two instruments that provide additional measures of the within twin schooling difference: differences in when the twins first join the labour force ...
http://hdl.handle.net/10197/1835
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