Guestworker programs: Evidence from Europe and the United States and some implications for U.S. policy

Mounting concern in the United States over increased illegal migration from Mexico during the past decade has generated a heated policy debate and led to a number of proposals as to how the U.S. government should deal with the problem. Among these has been a call for a temporary worker program similar to the U.S.-sponsored Bracero Program (1942–1964) in which over 4 million Mexican workers were recruited to perform temporary agricultural labor in the southwestern United States. This article considers the implications of such a program by examining the social and economic effects of previous guestworker programs in the United States and western Europe from the perspective of both sending and receiving societies. Particular attention is paid to the efficacy of these programs in promoting temporary as opposed to long-term immigration of foreign workers as well as their developmental impact on sending countries.Now at 2405 Rayburn House Office Building, U.S. House of Representatives, Washington DC 20515.     

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.     

The Discouraged Worker and Suicide in the United States

This paper empirically analyses whether worker discouragement is linked to suicide in the United States. This paper argues that discouraged workers might translate their frustration into alcohol or drug consumption rather than committing suicide directly. Based on the linear Granger causality test, this study finds that changes in the number female unemployed workers help to predict changes in female suicide patterns. A 1 % increase in growth in the male unemployment rate with age (45–54) will lead to a 2.8 % increase in the growth of male alcohol-induced deaths. This study finds a nonlinear causality from the female unemployment with age (25–34, 45–54, 50 and over) to drug-induced deaths. These findings suggest the importance of providing treatment for the jobless to reduce the risk for excessive alcohol consumption, drug misuse and suicidal behavior.     

From new entries to retirement: The changing age composition of the U.S. male labor force by industry

The process whereby the age composition of an industry is formed appears to be largely a function of past rates of growth in employment; the social (or institutional) framework sets limits and affects the ensuing age composition but relatively little. The following types will illustrate this process. 1. Consider an industry which has increased considerably more rapidly in employment over several decades than has the total labor force. The rapid growth brings in a disproportionately large share of youth who are first entering the labor market; other younger workers move from slowly growing (or declining) industries. These movements add many more younger workers. On the other hand, there is little, if any, unemployment in the industry so that there are few pressures being exerted on the older workers to retire, and relatively few will retire. Under these circumstances the age composition will be younger than tliat of the entire male working force. 2. Consider an industry which has grown slowly, if at all, for some time. There will be comparatively fewer (in comparison with the first example) new entries and less mobility from other industries. The men already engaged in this industry will continue to work there; they gradually become older and are not counterbalanced by increasing numbers of young workers. Unemployment is likely to be higher, leading to a higher retirement rate. There are also likely to be large numbers of men a decade or two under the retirement age-the heritage of an "ancient" period when the industry had experienced significant increases in employment; these add pressure on the older men and more retire. The age composition of such an industry gradually veers toward the older side; it is considerably older than that of the entire male working force. At any given moment of time most industries will reflect variable past growth rates. For example, one industry may have a very large proportion of young workers because it grew very rapidly in employment only during the decade prior to the time of study (i.e., the time of a decennial census); another may have a large proportion in the middle ages reflecting very rapid growth two or three decades earlier, followed by very slow growth in the decade prior to the time of study; and so forth.In light of the foregoing analysis, it appears that technological change, as measured by average annual changes in output per worker, has little bearing on the age composition of an industry. Conversely, the latter probably does not affect changes in output per worker.     

How Durable Are Ethnoracial Segregation and Spatial Disadvantage? Intergenerational Contextual Mobility in France

Building on emerging research into intergenerational contextual mobility, I use longitudinal data from France (1990–2008) to investigate the extent to which second-generation immigrants and the French majority continue to live in similar neighborhood environments during childhood and adulthood. To explore the persistence of ethnoracial segregation and spatial disadvantage, I draw on two measures of neighborhood composition: the immigrant share and the unemployment rate. The analysis explores the individual and contextual factors underpinning intergenerational contextual mobility and variation across immigrant-origin groups. The results document a strong stability of neighborhood environments from childhood to adulthood, especially with regard to the ethnoracial composition of the neighborhood. Individual-level factors are quite weak in accounting for these patterns compared with the characteristics of the city of origin. Moreover, the degree of contextual mobility between childhood and adulthood varies across groups. I find that neighborhood environments are more stable over time for non-European second-generation immigrants. The findings offer important new empirical contributions to the French literature on the residential segregation of immigrants and will more broadly be of interest to scholars of intergenerational spatial and social mobility.     

Selective migration and health in the USA, 1984-93

Using data from the Panel Study of Income Dynamics, we investigated the impact of health on domestic migration within the USA. We find that, for men below 60 years of age, a move from the middle to the bottom of the health distribution reduces mobility by 32-40 per cent. Non-random attrition from the panel implies that these are lower bounds. By contrast, we find evidence that, among older men, there is higher mobility at the top and bottom of the health distribution than there is in the middle. For women, we find no evidence of a relationship between their own health and mobility, although spouse's health does affect the mobility of married women.     

Home Ownership and Job Satisfaction

This paper investigates the link between job satisfaction and home ownership. We explicitly focus on the effect of a transition from non-ownership to ownership on the self-reported job satisfaction scores. In other words, we concentrate on the change in job satisfaction response for individuals observed right before and after the transition. Utilizing the panel feature of the British Household Panel Survey, we find that transition to ownership reduces job satisfaction within a year following the purchase—controlling for observed variation and unobserved heterogeneity. The reduction in job satisfaction is sharper when the purchase is financed through a mortgage. We also test if this pattern persists over years. We show that the initial reduction in job satisfaction is more than doubled within 3 years after the transition for both categories of ownership. We conclude that home ownership may be a constraint for the career prospects of the employed workers, since it reduces mobility and forces them to become more dependent on the local labor market conditions. These concerns are deeper in case of a debt-financed ownership.     

Legal and illegal immigrants: an analysis of optimal saving behavior

Savings of guest workers as well as of undocumented migrants represent important inflows of foreign exchange for some developing countries. This paper compares the saving behavior of these two types of migrants, assuming that the former are authorized to work abroad for a specific period of time, while the latter can stay until apprehended and deported by the immigration authorities. Due to the risk of deportation, the saving rate of an illegal immigrant is found to be initially above that of a documented migrant. This precautionary saving phenomenon is, however, short-lived. A key finding of the paper is that the total repatriated assets of an illegal migrant are always lower than those of a documented worker, provided that their duration of stay abroad is identical. This is because the undocumented migrant’s saving rate falls over time as her expected lifetime earnings are adjusted upwards every day that she avoids apprehension.     

劳动力市场“去管制化”与“知识失业”

文章从劳动力市场"去管制化"出发,提出对中国"知识失业"现象的解释。理论模型发现,随着劳动力流动和工资"去管制化",受教育人口不断增加,与之伴随的则是"知识失业"的出现和增加。但当劳动力市场进一步"去管制化",知识失业率在增加到一定程度后开始下降。因此,"知识失业"是劳动力市场"去管制化"的结果,"知识失业"的出现在一定程度上是暂时的、阶段性的,继续推进劳动力市场改革,"知识失业"现象就会减少甚至消弭。微观数据实证分析证实,劳动力流动"去管制化"和工资"去管制化"都是2002年样本劳动力市场出现"知识失业"的原因,2009年样本劳动力流动"去管制化"仍是"知识失业"出现的重要原因,但工资"去管制化"效应不再显著。     

Fringe benefits and income inequality

In this paper, we analyze the distribution of fringe benefits among workers and underline its implications for income inequality. To this end, we develop a positional approach to inequality based on the concept of rent as a potential link between positions and their rewards. We hypothesize that workers extract rent in the form of benefits in industries with worker leverage (in the form of unioniziation, internal labor market, and public employment) or share rent with firms in highly profitable industries that endure for efficiency wage reasons. On the basis of a unique dataset from Israel, we test these hypotheses by estimating the probabilities of obtaining benefits according to industries’ structural features while controlling for cross-industrial differences in workers’ demographic and human capital characteristics. The analyses reveal that benefits are determined by structural factors, representing a separate dimension of the rewards attached to positions, different from earnings. We further stress the importance of incorporating fringe benefits into inequality research, given that benefits together with earnings stratify workers and evidently signify structured positions in the economy.     

Are black workers missing the connection? The effect of spatial distance and employee referrals on interfirm racial segregation

I use data on the hiring practices and spatial location of firms in four cities to model the process of interfirm racial segregation. When I control for the spatial location of the firm, the use of employee referrals reduced the probability of hiring a black worker by 75% in firms that are less than 10% black. Among all firms, the results suggest that employee referrals are just as important as the geographic location of the firm in generating employment segregation: both increase the predicted level of interfirm racial segregation among blue-collar workers in the cities studied by about 10%.     

当前我国城市职业流动的障碍分析

本文通过经验调查研究发现我国的职业流动率偏低 ,且大量劳动者有流动意愿却没有流动行为 ,这些都说明我国的职业流动存在着障碍。本文将这些障碍分为个人障碍和制度障碍、进入障碍和退出障碍等 ,并根据经验社会调查所得数据对此进行了检验。我们认为 ,消除这些流动障碍的关键在于加快改革开放步伐 ,建立完善的社会主义市场经济制度     

农民工就业与就业促进问题实证研究——以北京市为例

随着中国城市化进程的加快,大量的农民从农村来到城市,从事着各种各样的劳动。在中国的产业大军中,农民工数量在迅速增长,农民工日益成为不可或缺的重要力量。由于户籍等原因,作为就业弱势群体的农民工比城镇劳动力面临着更大的失业风险和保障缺失。他们的就业状况究竟如何、他们参加失业保险以及受到就业培训的状况如何,如何促进农民工的就业是值得全社会高度关注的重大问题。本文以北京市为例,就农民工的就业与就业促进问题进行一些分析和探讨。     

Business Cycles,Medicaid Generosity,and Birth Outcomes

Birth outcomes influence many aspects of later life health and wellbeing, making healthcare access during pregnancy a policy priority. Low-income mothers often depend on Medicaid, for which eligibility is determined by their income relative to state eligibility thresholds. The prevalence of adverse birth outcomes is known to exhibit cyclical variation, due in part to changes in the composition of women giving birth in response to changing economic conditions. However, cyclical variation in adverse birth outcomes also varies with respect to Medicaid eligibility thresholds. Our analysis uses birth-records data for 2000 through 2013, aggregated into 173,936 county-by-quarter observations and linked to county-level unemployment rates and state-level parental Medicaid thresholds. Using fixed-effects negative binomial models, we examine the role of Medicaid generosity in influencing birth outcomes across business cycles. We test for interactions between Medicaid and unemployment, hypothesizing that the negative effects of recessions are worse where Medicaid thresholds are more restrictive. We find that higher Medicaid generosity dampens the negative effects of recessions on birth outcomes. The extent to which Medicaid interacts with unemployment also varies according to the age and race composition of mothers; in particular, Black mothers are both most affected by unemployment and most responsive to Medicaid generosity. Given current concerns about racial gaps in both infant and maternal mortality, our findings suggest that Medicaid may be an important feature of a strategy to close gaps in the prevalence of adverse birth outcomes across racial groups, especially during bust years.     

Internet Use and Well-Being Before and During the Crisis in Europe

The debate about whether Internet use increases or decreases subjective well-being is growing. However, previous studies rarely explore either this association at the time of financial crisis or the mechanisms by which contextual factors affect well-being. Using the four waves of the European Social Survey 2004–2010, this study examines the association between Internet use and well-being before and during the financial crisis in Europe which started in 2007. To understand how contextual factors explain individual well-being, we use multilevel model. We find that before the crisis, Internet use is not associated with well-being, in contrast with during the period of crisis. Beyond documenting the associations between Internet use and well-being, we find that using the Internet to respond to a situation of unemployment may help individuals for improved well-being. We also find that the density of Internet users in regions across Europe has positive and significant association with well-being. The results suggest that Internet use by individuals and the provision of the Internet access may be beneficial for maintaining well-being especially during the crisis.     

Unskilled labor and wage determination: an empirical investigation for Germany

This article contributes to the ongoing debate on native wage impacts of immigration. I propose a mobile-fixed factor distinction as a framework in which to think about the differential impact of immigration on various labor market groups. Skilled workers are treated as a fixed factor of production since the strong reliance on skill certification in Germany inhibits mobility and shelters from competition. Unskilled workers, in contrast, receive competitive wages. Using data from the German Socio-Economic Panel for 1984–1989 I estimate panel wage regressions for groups of workers separated by skill certification. I find that university graduates‘ wages increase, and the wages of workers without postsecondary degree decrease, as the industry share of unskilled workers increases. The effect for apprentices is ambiguous. JEL classification: F22, J31 Received January 19, 1995 / Accepted August 14, 1995     

Quality of life for students with disabilities in transition from school to adulthood

This paper examines quality-of-life concerns that pertain to secondary level students with disabilities who participate in high school programs in the United States. More specifically, we examine issues and programs that pertain to the “transition period” during which students leave school and begin to assume adult roles in their communities. The paper begins with an overview of major programs that have addressed this area over the past 25 years. We then present some contrasting definitions of quality of life, in order to provide a theoretical context for examining issues and concerns, ending with our recommendations for a taxonomy that can be used for operationally defining quality of life. Research findings from this perspective are presented next, followed by a discussion of ways in which quality-of-life information can beused to influence program and policy and policy decisions at both personal and institutional levels of discourse. We cite and describe several examples of such usage from our own experiences. The paper closes with some recommendations concerning what we must do in the future to improve quality of life for this population.     

Employment transitions in the Netherlands, 1980–2004: Are low educated men subject to structural or cyclical crowding out?

This article addresses whether low educated men are displaced from their jobs by higher educated workers in the Netherlands in the period 1980–2004. In particular, we test whether structural or cyclical crowding out is predominant in the Dutch labor market. In order to do so, we try to explain the observed trends in education-specific transition rates to entry into first employment from education, exit from employment into unemployment or inactivity, and re-entry into employment from unemployment or inactivity for men by both business cycle effects (that is, changes in aggregate unemployment rates) and structural effects (that is, changes in labor supply–demand ratios for high educated). Discrete-time event history models are estimated using the OSA Labor Supply Panel 1985–2004. Retrospective information enables to study trends from 1980 onwards, so that structural effects can be distinguished from cyclical effects. The results show that structural crowding out exists at both the worker in- and outflow. First of all, it was observed that a growth in the oversupply of high educated increases the employment exit risk of low educated workers more so than that of higher educated ones. In addition, it was shown that an increase in the oversupply of high educated especially reduces the re-employment chances of low educated unemployed men. There is no evidence found for cyclical crowding out among low educated workers in the Dutch labor market.     

Youth unemployment and government policy

Young people of working age tend to be particularly prone to labor market inefficiencies that keep their wages excessively high and their employment excessively low. These inefficiencies are usually magnified through unemployment benefit systems. This paper examines how these problems can be tackled through “employment vouchers,” i.e. hiring subsidies or tax breaks for the unemployed. It examines how vouchers to the young unemployed should differ from those to the adult unemployed. The employment vouchers considered here reduce unemployment and impose no cost on the government, since they are financed by the induced fall in government expenditures on unemployment benefits. Among other things, we find that young workers should receive lower vouchers as displacement of the old rises and as deadweight from providing vouchers to the old increases.     

Skilled temporary and permanent immigrants in the United States

The US temporary migration system is closely intertwined with the permanent system. First, this paper defines the various temporary and permanent admission categories. It presents available statistics on the occupations of temporary migrants upon admission and upon adjustment to permanent residency, especially since the Immigration Act of 1990 went into effect in 1992. There has been a sizable increase in the number of temporary workers over the past few years and those who adjust from specialty workers (H-1B) and intracompany transferee (L) have increased the overall skill composition of permanent immigrants. Secondly, the paper reviews the literature on the labor market impact of temporary migrants in academics and in the private sector. While there are marked concentrations of foreign-born workers among the college educated and especially Ph.D.s, the literature raises concerns but does not establish adverse effects (wage differentials, unemployment, etc.). There is, however, reason for some concern given trends in the postdoctoral labor market and for employersin `job shops' who undercut US workers with temporary workers.