The labor market effects of national health insurance: evidence from Taiwan

This paper investigates the impacts of national health insurance on the labor market, by considering the case of Taiwan, which implemented national health insurance in March 1995. Taiwan’s national health insurance is financed by premiums, which are proportional to an employee’s salary. These premiums may introduce distortions to the labor market. Based on repeated cross-sections of individual data we find that, on average, private sector employees’ work hours declined relative to their public sector counterparts, whereas their relative wage rates were almost unchanged with the introduction of national health insurance. The results suggest that neither private sector employers nor their employees were able to shift their premium burden to each other.      

三元劳动力市场分割与“新失业群体”失业——基于辽宁的调查

本文主要从辽宁省基本社会特质入手,从制度的角度展开“新失业群体”存在的根源分析。主要是从东北老工业基地特有的三元劳动力市场分割的视角来分析“新失业群体”何以在辽宁省特别突出。即由于劳动力市场三元分割,使得“新失业群体”在不同劳动力市场之间的职业流动发生障碍,导致了“新失业群体”的失业。     

Kids or courses? Gender differences in the effects of active labor market policies

We investigate active labor market programs in Austria. We find only small effects, if any, for most of the programs. However, the programs may have unintended consequences for women. In particular for younger women, a key effect of the programs and one reason for the male–female effect differential that is observed in the literature is to reduce or postpone pregnancies and to increase their attachment to the labor force. Furthermore, the variables capturing pregnancies and times of parental leave play a key role in removing selection bias.     

Immigration,skills and the labor market: International evidence

Using the 1994–1998 International Adult Literacy Survey, this paper compares cognitive skills and employment of immigrants in Canada, New Zealand, Switzerland, and the United States. Immigrants had lower cognitive test scores than natives in each country, with the largest gaps in the US, and small gaps in Canada and New Zealand. Male immigrants in the US were no less likely to work than natives, while in the other countries, male immigrants were less likely to be employed. Female immigrants were less likely in each country to be employed than natives, with an especially large gap for the US.The author thanks Francine D. Blau and two anonymous referees for helpful comments and suggestions and Katsuhide Yamashita for excellent research assistance. Responsible editor: Christoph M. Schmidt.     

The substitutability of labor between immigrants and natives in the Canadian labor market: circa 1995

This paper examines the substitutability or complementarity between Canadian-born and immigrant workers. These are examined by estimating a set of wage equations using a generalized Leontief production function. The paper finds that, in general, there is no displacement of Canadian-born workers by immigrants. Recent immigrants affect the native-born positively, while older immigrants are neither substitute nor complement for natives. However, the effects differ across industries. Overall, the evidence that immigrants harm the opportunities of native-born workers is scant.

On the ranking uncertainty of labor market wage gaps

Using a log-wage model, Horrace and Oaxaca (2001) propose estimators of the gender wage gap across industry classifications. One estimator involves the maximum over sample estimates of population parameters, and inference on this estimator follows with the implicit assumption that the sample maximum equals the population maximum. This paper proposes inference procedures for this estimator that relax this assumption. Specifically, multiple comparisons with the best methods are used to construct simultaneous confidence intervals for industry wage gaps. Using data on fourteen industry classifications, inference experiments indicate that differences in gender wage gaps across industries are insignificant at the 95% level.I would like to thank Dan Hamermesh, Dan Houser, Jason Hsu, Tom Kniesner, Ron Oaxaca, and Peter Schmidt for comments. All errors are mine. The generous support of the Office of the Vice Chancellor of Syracuse University is gratefully acknowledged. Responsible editor: Daniel S. Hamermesh.     

The performance of immigrants in the Norwegian labor market

This paper tests the assimilation hypothesis with Norwegian data. Using both cross-section and cohort analyses, the results show that the 1970–1979 immigrant cohort experienced an earnings growth of about 11% between 1980 and 1990, when their earnings profile was compared to that of natives. This is lower than the 19% assimilation rate predicted by the cross-section method. On the contrary, the results reveal a rapid earnings divergence across cohorts, and between the 1960–1969 cohort and natives. It is also shown that the „quality” of successive immigrant waves has declined over time, thus biasing the cross-section estimates of assimilation. Received: 8 August 1995 / Accepted: 7 January 1997     

Simulating bias in the estimator of labor market discrimination

In this study, the statistical bias in the most widely used estimator of labor market discrimination is investigated. An algebraic expression for the bias is derived and then simulated for a selected set of explanatory variables and model parameters. The results for a large national dataset seem to indicate that when the variables years of schooling and labor market experience are used in earnings functions, the estimator tends to underestimate the actual or true amount of labor market discrimination.     

The H-1B visa: Free market solutions for business and labor

The H-1B visa program opened the US information technology labor market to temporary, skilled immigrant labor. But the immigrant worker was bound to a specific employer for the duration of the visa. The non-portability of the H-1B visa has benefitted the employer at the expense of immigrant and domestic workers. Much of the political debate surrounding the H-1B program has focused on raising the annual visa cap based on inconclusive evidence of a domestic IT labor shortage. The labor shortage question has obscured the more importantissue of reforming the H-1B program to level the playing field between business and labor.     

The effect of immigration on the labor market performance of native-born workers: some evidence for Spain

This paper provides an approximation to the labor market effects of immigrants in Spain, a country where labor market institutions and immigration policy exhibit some peculiarities, during the second half of the 1990s, the period in which immigration flows accelerated. By using alternative data sets, we estimate both the impact of legal and total immigration flows on the employment rates and wages of native workers, accounting for the possible occupational and geographical mobility of immigrants and native-born workers. Using different samples and estimation procedures, we have not found a significant negative effect of immigration on either the employment rates or wages of native workers.

Male-female differences in labor market outcomes during the early transition to market: The cases of Estonia and Slovenia

Changes in women's relative wages and employment are analyzed, using social security data from Slovenia (1987–1992) and a retrospective labor force survey in Estonia (1989–1994). Estonia adopted liberal labor market policies. Slovenia took an interventionist approach. Nevertheless, relative wages for women rose in both countries. Factors favoring women included: returns to human capital rose in transition, benefiting women; relative labor demand shifted toward predominantly female sectors; low-wage women had a disproportionate incentive to exit the labor market, especially in Estonia. However, women were less mobile across jobs in both countries, so men disproportionately filled new jobs in expanding sectors. Received: 27 November 1997/Accepted: 20 December 1998     

Personnel policies and the age structure of an occupation: the case of the academic labor market

Population projection techniques are used to project the size and age structure of the academic labor force. Age specific coverage data from Teachers Insurance and Annuity Association are used to proxy academic employment. Hiring, quit, retirement and death rates are calculated for 1981 and 1982. Projections of the future academic labor force are made holding these rates constant. The results show the importance of these entry and exit rates and also indicate how these rates can fluctuate from year to year.Estimates of the future demand for teachers are used to determine a target rate of growth of the academic labor force. Alternative personnel policies are incorporated into the projections. This analysis indicates that the personnel policies chosen to meet the desired labor force size have substantially different effects on the age structure of the labor force.The authors wish to acknowledge the cooperation of the Teachers Insurance and Annuity Association in providing the data used in this study and specifically Francis King for his assistance and encouragement. Helpful comments on this paper were provided by John Dutton, Ronald Schrimper, Jack Wilson, and Bryan Boulier.     

Public policy and the labor market adjustment of new immigrants to Australia

Two separate cohorts of immigrants to Australia are compared in order to assess the potential role of immigrant selection criteria, labor market conditions, and income-support policy in facilitating the labor market adjustment of new arrivals. Although these two cohorts entered Australia only five years apart, their initial labor market outcomes varied dramatically. The results indicate that changes in immigration policy may have led to increased human capital endowments that in turn resulted in higher participation rates and reduced unemployment. At the same time, improvement in Australian labor market conditions and changes in income-support policy over the 1990s – which most likely altered the returns to human capital – were probably instrumental in reinforcing the effects of tighter immigrant selection criteria. As much as half of the fall in unemployment rates among women and one third the decline among men appears to have occurred as the result of changes in the returns to demographic and human capital characteristics. Responsible editor:Christoph M. Schmidt     

Is the German apprenticeship system a panacea for the U.S. labor market?

This paper explores the structure of incentives undergirding the German system of apprenticeship training. We first describe characteristics of the German labor market which may lead firms to accept part of the cost of general training, even in the face of worker turnover. We then compare labor market outcomes for apprentices in Germany and high school graduates in the United States. Apprentices in Germany occupy a similar position within the German wage structure as held by high school graduates in the United States labor market. Finally, we provide evidence that – in both countries – the problem of forming labor market bonds is particularly acute for minority youth. JEL classification: J24, J31, J60 Received: July 4, 1996 / Accepted February 4, 1997     

Occupational language requirements and the value of English in the US labor market

This paper is concerned with the English-language requirements of occupations in the USA, as measured by the O*NET database. These scores are linked to employed native and foreign-born men in the 2000 Census. Earnings increase with the respondent’s proficiency in English, with the English proficiency required for the occupation, and when those with high levels of proficiency work in jobs requiring English-language skills (interaction effect). There is a strong economic incentive for the matching of worker’s English skills and the occupation’s requirements, and this matching tends to occur in the labor market.     

Comparative labor market performance of visaed and non-visaed migrants: Pacific islanders in Sydney

Using survey data for Tongan and Samoan migrants in Sydney the effects of visa restrictions on labor market performance of migrants are assessed. Univariate analysis suggests a positive association between unemployment and the unrestricted entry of Samoan step-migrants from New Zealand. A probit model of the determinants of unemployment is estimated with controls for human capital and demographic variables. While human capital endowments are important, visa restrictions do not have a significant effect on either group‘s employability. Implications for policy are discussed highlighting the complementarities between host country immigration policies and foreign aid programs. Received: 13 August 1997 / Accepted: 5 March 1998     

The fortunes of one's birth: Relative cohort size and the youth labor market in the United States

Using two different measures of relative cohort size – one indicating the size and placement of an individual's own birth cohort, and the other, the ratio of young to prime age adults in the United States in that year – it has been possible to isolate strong effects of the population age structure on wages in the United States over the past thirty-three years. These effects have been strong enough that virtually all of the observed change in the experience premium, and a substantial proportion of the changes in the college wage premium, can be explained by the relative cohort size variables alone. Even changes in the amount of within-group variance in wages appear to be largely a function of changing age structure, and absolute wage levels have been strongly affected by these demographic changes, suggesting that population growth can have positive effects on the economy. Received: 27 January 1998/Accepted: 6 June 1998     

Education,health and family size as determinants of labor market activity for the poor and nonpoor

The effect of head’s and wife’s educational attainment, health and the number of the head’s dependents under 18 on the amount of time spent in the labor force by white and black male heads of both poor and nonpoor families is investigated in this paper. The technique employed is multivariate regression analysis using disaggregated data from the 1967 Survey of Economic Opportunity. While educational attainment has a positive effect on the supply of labor of nonpoor heads, it has an insignificant effect on the black poor and a nonlinear effect on white poor heads. The health of head and wife has a very important effect on the ability of the poor to supply labor services while for the nonpoor the health effect is insignificant. For both the poor and nonpoor, there is a positive relationship between family size and the supply of labor. Evidence is also presented to indicate that the black husband’s and wife’s labor market activity are substitutes while they are complementary within white families.