Life expectancy and labor supply of the elderly

Most of the 20th century saw a progressive reduction in the labor market participation of older workers, but in the 1990s, there was a turning point in this trend across the developed world. Incentives to retire early have gradually been removed and, even, substituted by benefits for workers who remain active. This study shows that these reforms will find less and less opposition from workers as a consequence of the growth in their life expectancy, as long as it has a greater positive effect on the productivity of the elderly than on the value of leisure.     

Parental transfers and the labor supply of children

To finance their personal consumption, children may rely on transfers in the form of pocket money made by their parents and on personal resources earned from labor market activities. In this paper that focuses on the interaction between these two sources of income, we consider a model of parental transfer where the child can choose his own income through labor supply. The parent commits to a transfer amount that the child takes as given. For our empirical analysis, we use a cross-sectional French survey that includes detailed information about pocket money from parents to schoolchildren. Using a maximum-likelihood method, we estimate a simultaneous-equations model and find that parental transfers do not significantly influence the child's labor supply.     

Links between labor supply and unemployment: theory and empirics

A flow model of labor market participation is used to describe how various exogenous variations jointly affect unemployment and participation and provides short-run identification restrictions of a structural VAR. In some countries, fast rising female participation may have had a moderate short- and medium-run impact on unemployment rates. A variance decomposition exercise indicates that, in Continental Europe, participation is driven in the short run by unemployment shocks, whereas in the USA, it is driven by participation shocks (demography, immigration). Unemployment in Europe is driven by participation shocks, whereas in the USA, it is driven by unemployment shocks.      

四川省经济增长与人口就业的实证分析

进入90年代以来,我国出现了经济增长与就业不同步现象,本文运用静态和动态分析方法对四川省经济增长与就业之间的关系进行实证分析,试从中国西部一个人口大省的角度,找出经济增长与就业之间出现悖论的问题本质。     

The labor supply of Latinas in the USA: Comparing labor force participation, wages, and hours worked with Anglo and Black women

This study explores the determinants of labor supply patterns among Latinas in the USA. We use recent microeconomic data from the Panel Study on Income Dynamics/Latino National Political Survey (PSID-LNPS) to estimate models of labor force participation, wages, and hours worked for a sample of Cuban, Mexican, and Puerto Rican women. We estimate the same models for Anglo and Black women in order to explore ethnic differences in the impact of characteristics affecting both the reservation and the market wage. We find that differences exist in the return to characteristics, such as education, but that there are also substantial differences in the levels of those characteristics across ethnic groups. The low wage rates and labor market activity of Latinas relative to Anglo and Black women are thus likely to be the combined result of lower investments in human capital and larger family size, the greater negative impact of macroeconomic conditions, and a stronger responsiveness to wages. Among Latinas, we find that there are differences in labor market outcomes between national origin and nativity groups. We also find that age at arrival and years in the USA play a role in labor supply, and that this is particularly true for Puerto Rican women.     

The sectoral labor supply of married couples in Brazil: Testing the unitary model of household behavior

An assumption of the unitary model of household decision-making is that household members maximize one household utility function. This assumption implies that households pool their income and, therefore, the ownership of nonwage income has no effect on household demand. In this paper, this implication is tested by estimating multi-sector labor supply equations for men and women in Brazil. The results indicate that the unitary model is rejected in the informal and self-employment sectors for men and the formal and informal sectors for women; in these cases own nonwage income has a significantly negative effect on labor supply while spousal nonwage income has no significant effect. Received: 29 December 1997/Accepted: 9 December 1998     

Parental transfers, student achievement, and the labor supply of college students

Using nationally representative data from the NLSY97 and a simultaneous equations model, this paper analyzes the financial motivations for and the effects of employment on U.S. college students’ academic performance. The data confirm the predictions of the theoretical model that lower parental transfers and greater costs of attending college increase the number of hours students work while in school, although students are not very responsive to these financial motivations. They also provide some evidence that greater hours of work lead to lower grade point averages (GPAs).     

Demographic change, endogenous labor supply and the political feasibility of pension reform

Options for reforming unfunded public pension schemes that are now being discussed all share the feature that the burden induced by demographic change would be shifted towards presently living and away from unborn generations. Existing models of the political economy of pension reform can not explain why such reform options are being discussed at all. We present an alternative model in which the possibility of evasion of workers from payment of social security taxes is taken into account by modelling a labor supply function. It turns out that the burden of demographic change may fall completely or at least predominantly on the pensioners. Thus this type of model can much better explain recent trends in legislature on unfunded public pension systems in industrial democracies. Received: 7 January 1999/Accepted: 20 December 1999     

The impact of employer-sponsored child care on female labor supply behavior: Evidence from the nursing profession

This paper studies the effects of employer-sponsored child care on two dimensions of the labor supply behavior of women with young children: annual hours worked and attachment to the employer. Data from the 1988 Biennial Survey of Illinois Registered Nurses are used in the empirical analysis. The provision of employer-sponsored child care is found to have significant positive effects on both aspects of labor supply.     

The impact of labor market entry conditions on initial job assignment and wages

We estimate the effects of labor market entry conditions on wages for male individuals first entering the Austrian labor market between 1978 and 2000. We find a large negative effect of unfavorable entry conditions on starting wages and a sizable negative long-run effect. Our preferred estimates imply a decrease in starting wages by about 0.9 % and a lifetime loss in wages of about 1.3 % for an increase in the initial local unemployment rate by one percentage point. We show that poor entry conditions are associated with lower quality of a worker’s first employer and that the quality of workers’ first employer explains as much as three-quarters of the observed long-run wage effects resulting from poor entry conditions. Moreover, wage effects are much more persistent for blue-collar workers because some of them appear to be permanently locked in into low-paying jobs/tasks.     

Welfare programs and labor supply in developing countries: experimental evidence from Latin America

This study looks at the effect of welfare programs on work incentives and the adult labor supply in developing countries. The analysis builds on the experimental evaluations of three programs implemented in rural areas: Mexico’s Programa Nacional de Educación, Salud y Alimentación (PROGRESA), Nicaragua’s Red de Protección Social, and Honduras’ Programa de Asignación Familiar. Comparable results for the three countries indicate that the effects that the programs have had on the labor supply of participating adults have been mostly negative but are nonetheless small and not statistically significant. However, the evidence does point to the presence of other effects on labor markets. In the case of PROGRESA, there is a small positive effect on the number of hours worked by female beneficiaries and a sizeable increase in wages among male beneficiaries and a resulting increase in household labor income. Moreover, PROGRESA seems to have reduced female labor-force participation in ineligible households. These results imply that large-scale interventions may have broader equilibrium effects.     

Child care demand and labor supply of young mothers over time

This paper uses panel data from the National Longitudinal Survey of Youth (NLSY) to analyze jointly fertility, employment, and child care decisions of young women over time. As these young women age (from 21 to 25 years on average) they become increasingly likely to have young children, to be employed, and to use non-relative forms of child care. A multivariate analysis reveals that rising wage rates and changes in household structure are important determinants of these upward trends. Further analysis reveals a considerable amount of movement each year among states defined by the presence of young children, employment, and child care arrangement. Overall the young women in the NLSY can be characterized as being in a volatile stage of their lives, when many economic and demographic factors are changing. They appear to respond to these changes by altering their labor supply and child care behavior.     

Separate taxation and married women's labor supply: a comparison of West Germany and Sweden

This paper uses Swedish and German micro data on wages, hours of work and human capital related variables for German and Swedish couples. When separate taxation was introduced in Sweden in 1971, incentives for married women to supply more labor to the market, was an important argument. A comparison with the behavior of German women, who are confronted with the high marginal taxes of split taxation, is a way of evaluating this policy. Effects of the specific tax systems are incorporated in logit analysis or married women's labor force participation. German and Swedish regressions differ significantly. Children are for example a major detering factor for German women's labor force participation but not for Swedish women.I have received helpful comments on earlier versions of the paper from Wim Groot, Christof Helberger, Notburga Ott, Robert J. Willis, participants at the European Society for Population Economics Conference and referees of the Journal of Population Economics, as well as participants of seminars at the Universities of Amsterdam, Aarhus, Frankfurt and Chicago.     

Monkey bars and ladders: The importance of lateral and vertical job mobility in internal labor market careers

This paper compares results from the empirical literature on internal labor markets with outcomes from analyzing personnel data of the Dutch aircraft manufacturer Fokker. It sheds light on differences in the functioning of internal labor markets between periods of workforce growth and decline. Despite substantial variation in individual wages, careers are important as wages are strongly related to job levels. Promotion rates fall and demotion rates rise when the firm enters the stage of demise. Vertical and lateral job mobility are important in internal labor market careers as they stimulate wage growth and reduce the lay-off risk.     

The impact of “parent care” on female labor supply decisions

Data from the 1986–1988 Survey of Income and Program Participation panels were used to analyze how informal-caregiving of disabled elderly parents affected female labor supply. Instrumental variables analyses suggested that coresidence with a disabled parent leads to a large, significant reduction in work hours, due primarily to withdrawal from the labor force. Although the impact of nonhousehold member caregiving was insignificant, evidence of an effect was stronger when commitment of caregiving time was greater. Projections of female labor force participation rates should account for potential increases in caregiving demand due to the aging of the U.S. population.     

我国劳动力供需增长的城乡构成

转型时期以来 ,我国劳动力供需增长重心都已明显地转移到城镇地区 ,但也不可忽视全国劳动力存量重心仍在农村。不论从存量还是从增量看 ,城乡都存在供过于求的矛盾 ,必须在加快城市化发展进程中努力扩增城市就业容量 ,充分发挥城市化对城乡就业压力的双向疏降作用。     

Indigenous labor supply,sustenance organization,and population redistribution in nonmetropolitan america: An extension of the ecological theory of migration

The ecological theory of migration asserts that change in sustenance organization, to the extent that it produces changes in the opportunities for living, necessitates a change in population size. Migration may thus be viewed as a demographic response to the population’s need to reestablish a balance between its size and sustenance organization, thus attaining its best possible living standard. However, the levels of net in- or out-migration needed to restore the balance should be affected by the degree of positive or negative growth of the indigenous labor force population. We thus test the hypothesis that changes in opportunities for living will be balanced by net changes in the number of persons in the labor force, where this is a function of both indigenous labor supply and net migration.     

The causal relationship between female labor supply and fertility in the USA: updated evidence via a time series multi-horizon approach

The purpose of this paper is to investigate the causality between female labor supply and fertility in the presence of auxiliary variables such as education, female wages, and male relative cohort size. We employ annual time series data spanning the period 1948 to 2007 for both an aggregate and an age-specific group. Our econometric specification follows closely the concepts and procedures proposed by Dufour and Renault (Econometrica 66(5):1099–1125, 1998) and Dufour et al. (J Econom 132:337–362, 2006) in that we conduct multi-horizon causality tests that allow for direct and indirect effects to take place. The sign and economic importance of our results is assessed via the estimation of impulse response functions. Our results establish bidirectional indirect causality between female labor supply and fertility and suggest interesting causal chains among the system variables. Causality effects are stronger for the age-specific group.     

The effects of job displacement on job quality: Findings from the Wisconsin Longitudinal Study

This study examines the extent to which job displacement divides the career experiences for a cohort of workers. Previous studies of job displacement find nontrivial economic losses for displaced workers, but the effects of displacement on “non-economic” properties of jobs have been largely overlooked. Results using the Wisconsin Longitudinal Study indicate that workers who were displaced have lower levels of occupational status, job authority, and employer-offered pension and health insurance than they would have had had they not been displaced. Difference-in-differences estimates, which control for temporally-invariant unobserved heterogeneity, are generally larger than cross-sectional estimates; still, there is a close correspondence of estimates across a range of methodological approaches attesting to the robustness of the estimates in the face of various technical assumptions and model specifications. Effects of displacement on job quality also exhibit conditioning by gender, education, occupation, and industry: while less educated, blue collar and manufacturing workers experience significant losses for employer-offered benefits, more educated, upper white collar and non-manufacturing workers experience significant losses for occupational status, job autonomy, and job authority.     

The perceived impact of child care costs on women’s labor supply and fertility

In a sample of Detroit-area mothers of preschool-aged children interviewed in 1986, one-third reported that child care problems had constrained their employment. Such reports were relatively prevalent among poor women, those without relatives nearby, and those willing to entrust the care of their children to nonfamily members. Only one-tenth of the sample reported a similar child care constraint on fertility, a phenomenon unrelated to income but relatively prevalent among women with strong labor force attachment. The results suggest that policies to increase the supply of child care or to lower its cost could increase female labor supply by a substantial fraction, with an even greater rise among women most at risk of poverty and reliance on public assistance, but probably would not raise fertility significantly.