The school-to-work transition of 2<Superscript>nd</Superscript> generation immigrants in Denmark

2^nd generation immigrants from less developed countries have less education and a lower employment frequency compared to the native Danish youth. We analyse the school-to-work transition of these groups using panel data for the years 1985–1997. The educational gap between 2^nd generation immigrants and the Danish youth is to some extent explained by age structure, while age does not explain the native-immigrant gap concerning the duration of waiting time until first job and the duration of first employment spell. Instead parental capital and neighbourhood effects seem to play a major role. We find large gender differences among 2^nd generation immigrants in the school-to-work transition.All Correspondence to Nina Smith. Thanks to Thomas Haugaard Jensen, Anne-Sofie Reng Rasmussen and Mette Skak-Nielsen who have done part of the computational work. We also want to thank two anynomous referees and participants in the ESF-conference on Migration and Development in Naples 2000 and the ESPE conference in Athens 2001 for many valuable comments. The project has been financed by the Danish Social Science Research Council (FREJA), the Danish Ministry of Labour and TSER. Furthermore, Helena Skyt Nielsen has been supported financially by the Danish Social Science Research Council (SSF), while this work was undertaken. Responsible editors: David Card and Christopher M. Schmidt.     

Immigrant earnings: Language skills, linguistic concentrations and the business cycle

This study of the determinants of earnings among adult foreign-born men using the 1990 Census of Population focuses on the effects of the respondent's own English language skills, the effects of living in a linguistic concentration area, and the effects of the stage of the business cycle at entry into the U.S. labor market. The analysis demonstrates the importance of English language fluency among the foreign born from non-English speaking countries. There is also strong evidence for the complementarity between language skills and other forms of human capital. Furthermore, there is strong evidence using selectivity correction techniques for the endogeneity between language and earnings. Received: 30 November 1999/Accepted: 6 February 2001     

Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States

The correlation in economic status among siblings is a useful “omnibus measure” of the overall impact of family and community factors on adult economic status. In this study we compare brother correlations in long-run (permanent) earnings between the United States, on one hand, and the Nordic countries (Denmark, Finland, Norway and Sweden) on the other. Our base case results, based on very similar sample criteria and definitions for all countries, show that this correlation is above 0.40 in the United States and in the range 0.14–0.26 in the Nordic countries. Even though these results turn out to be somewhat sensitive to some assumptions that have to be made, we conclude that the family and community factors are more important determinants of long-run earnings in the United States than in the Nordic countries. Received: 27 July 2000/Accepted: 7 March 2001 All correspondence to: Anders Bj?rklund. Comments from two referees, conference participants at ESPE2000 and the Canadian Employment Research Forum, seminar participants in Aarhus, Uppsala, Bonn, and Stockholm are gratefully acknowledged. We thank NOS-S for financial support. The Swedish data collection was also supported by HSFR and SFR. The Finnish data were obtained with support from the Yrj? Jahnsson Foundation. We thank Tom Erik Aab? for preparing the Norwegian data, and Esben Agerbo for computational assistance with the Danish data. Responsible editor: John F. Ermisch.     

Health effects of child work: Evidence from rural Vietnam

We test whether work in childhood impacts on health. We focus on agricultural work, the dominant form of child work worldwide. Data are from the Vietnam Living Standards Survey, 1992–93 and 1997–98. We correct for both unobservable heterogeneity and simultaneity biases. Instruments are land holdings and commune labour market and school quality indicators. We examine three indicators of health: weight-for-age Z-score; reported illness; and, height growth. There is clear evidence of a healthy worker selection effect. We find little evidence of a contemporaneous negative impact of child work on health but, particularly for females, work undertaken during childhood raises the risk of illness up to five years later. For boys, the risk is increasing with the period of time in work. There is no evidence that work impedes the growth of the child. This work was undertaken as part of the Understanding Children's Work project, an inter-agency program between the International Labour Organisation, UNICEF and the World Bank. The views expressed are those of the authors alone and do not reflect positions of the sponsoring organisations. We are grateful to the Government of Vietnam for permission to use the data. We thank two referees for very helpful comments. Responsible editor: Alessandro Cigno.     

Immigrant and native responses to welfare reform

We investigate the effect of welfare reform in the US on the employment and hours of work of low-educated foreign-born and native-born women. For foreign-born women, we investigate whether the effect of welfare reform differed by year of immigration. We also examine whether the immigrant provisions of welfare reform had a chilling effect on those who remained eligible for benefits. Results suggest that welfare reform induced low-educated women to increase their labor market attachment; reform had larger effects on the least educated native-born women and among foreign-born, larger effects on more recent arrivals. The chilling hypothesis is not supported.All correspondence to Robert Kaestner. The authors thank Lynn Karoly, Christoph Schmidt, seminar participants at the University of Illinois and New School University, and several anonymous referees for comments on a previous draft of this paper. Robert Kaestner is grateful to the Luce Foundation for partial support for this research. Responsible editor: Christoph M. Schmidt.     

Evaluating correctional health care. The lessons of New York City.

New York City's correctional health care system is a complicated one, with many component parts. Correspondingly, the task of developing an evaluation process to assess this system turned out to be complex as well. The major responsibility for developing such a process and for keeping it in motion lies with the Contract Evaluation Unit of the Department of Health. Our experiences in meeting these challenges, as well as the historical and institutional factors that have influenced our efforts, should be of interest to professional groups facing similar tasks in other localities and to readers curious about how particular health service evaluation approaches take form. This article describes our method, how it emerged, and that it entails, with an eye toward identifying what might usefully be applied to the study of other correctional health care services and settings.     

DEALER INTERMEDIATION BETWEEN MARKETS

We develop a dynamic model of dealer intermediation between a monopolistic customer–dealer market and a competitive interdealer limit order market. Dealers face inventory constraints and adverse selection. We characterize the optimal quote setting and inventory management behavior for both markets in closed form and reveal how price setting in one market segment influences quote behavior in the other. The framework is used to explore market stability issues of the two‐tier market structure and delivers testable predictions about how the dispersion of retail prices is related to the state of the interdealer limit order book. Data from the European sovereign bond market is used to test for inventory related retail price dispersion.     

Gender Differences in Lifelong Learning: An Empirical Analysis of the Impact of Marriage and Children

We use recent advances in the statistical analysis of Oaxaca–Blinder decompositions for non‐linear models to analyse the contribution of individual variables to total gender differences in training participation and duration. Results suggest that effects stemming from the intra‐household division of labour contribute significantly to gender differences, but that segregation of the labour market as well as differences in the access to training by tenure, age, occupation, profession and sectors are more important.     

Price Effects of the Minimum Wage: A Survey Data Analysis for the German Construction Sector

Utilizing the link between employment and price changes as a result of minimum wages, we use firm‐level data to evaluate the effect of minimum wage introduction in the German construction sector. In East Germany we find significant positive price effects that exclude the possibility of rising employment. Rather, the results indicate the existence of a competitive sector‐specific labour market, and thus declining employment. In contrast, we cannot find any significant price reaction for West Germany. This suggests that the implemented minimum wage in West Germany is too low in comparison to the predominantly paid wages and is hence not binding.