Working time in Great Britain, 1975–1994: evidence from the New Earnings Survey panel data

Using individual-based panel data from the New Earnings Survey, this paper provides a detailed analysis of the working time behaviour of British full-time male and female workers as well as part-time female workers. We investigate the following: male–female differences in basic and overtime working patterns; extensive overtime working; age-related patterns of weekly basic and overtime hours; the effects of collective bargaining on hours of work; industrial, public–private sector and occupational breakdowns of basic and total hours. The results for the last three topics are based on estimates from fixed effect regressions with time-varying parameters.     

Seasonal Extraction in the Presence of Feedback

Time series seasonal extraction techniques are quite often applied in the context of a policy aimed at controlling the nonseasonal components of a time series. Monetary policies targeting the nonseasonal components of monetary aggregates are an example. Such policies can be studied as a quadratic optimal control model in which observations are contaminated by seasonal noise. Optimal extraction filters in such models do not correspond to univariate time series seasonal extraction filters. The linear quadratic control model components are nonorthogonal due to the presence of control feedback. This article presents the Kalman filter as a conceptual and computational device used to extract seasonal noise in the presence of feedback.     

Gender differences in the earnings produced by a middle range education: The case of Canadian ‘colleges’

In this paper we use data on consecutive cohorts of recent graduates from community colleges or community college-like institutions to address the following questions about the gender earnings gap: i) What was the trend in the gender earnings gap for these recent graduates? ii) What role in the observed trends in the gender earnings gap was played by occupational demand? iii) How and to what extent did the domestic division of labour contribute to the gender earnings gap in this young sample? We find that the gap fell then rose, that occupational demand played a role in these shifts, and that the domestic division of labour did indeed contribute to the gap in this young sample. Furthermore, our results point to a process of cumulation of factors that increase the earnings gap which has both substantive and methodological implications.     

Wagner’s law vs. Keynes’ hypothesis in very different countries (Armenia and Spain)

There is considerable controversy in the economic literature concerning whether particular government expenditures have an impact on economic growth. This study analyzes the macroeconomic magnitude of government expenditures in Armenia and Spain and evaluates whether there exists a causal relationship between government expenditures and economic growth, and vice versa (Keynes’ hypothesis and Wagner’s law). The study employs the VAR methodology to analyze annual data for the years 1996–2014. By utilizing Granger causality tests, the study reveals whether the government expenditures are a significant factor in economic growth in short-term perspective. Finally, IRF and FEVD tests are applied to estimate the effects of a change in particular government expenditures on GDP for twelve year time horizon. This study validates the hypothesis that, irrespective of size and nature of the economy (Armenia vs. Spain), some public expenditures (e.g. healthcare) positively contribute to the growth of the economy, while social protection in both countries is negatively related to GDP.     

The economic benefits of volunteering and social class

A theory that the economic benefits of volunteering are contingent on social class (as defined by similarities in labour market situation) is tested using seven waves of longitudinal data from the British Household Panel Study gathered between 1996 and 2008 and fixed-effects models. Volunteering has a positive effect on earnings, but it is confined to people in professional and managerial occupations. Employees in white and blue collar jobs do not benefit. The study suggests that inconsistent results from previous studies might be due to failure to consider occupational heterogeneity among volunteers.     

A longitudinal evaluation of government-sponsored job skills training and basic employment services among U.S. baby boomers with economic disadvantages

Job skills training is a cost-effective strategy for improving employment among individuals who have low income and employment barriers, but few U.S. government-sponsored employment program participants have received such training. To better understand long-term gains from job skills training, this study compared employment and earnings trajectories between program participants who received job skills training and those who received basic services only. Using data from the National Longitudinal Survey of Youth 1979, we estimated 33-year employment and earnings trajectories among U.S. baby-boomer cohorts while accounting for baseline group heterogeneity using inverse propensity score weighting. We found increases in employment rates over the life course, especially among Black women. Job skills training also increased earnings by up to 69.6 % compared to basic services only. Despite the long-term gains in employment and earnings, job skills training participation is not sufficient to address gender as well as racial and ethnic gaps in full-time employment. Findings reinforce the importance of incorporating job skills training as an essential service element of government-sponsored employment programs to improve long-term labor market outcomes among Americans with economic disadvantages.     

Globalization, labor market transformation, and metropolitan earnings inequality

Numerous studies have noted the increasing levels of inequality in American society, but relatively few have linked this inequality to the dynamics of the global economy. In this study, we examine the impact of five measures of globalization (global capital, foreign direct investment, exports, foreign born non-citizens, and foreign born citizens) and six measures of labor market transformation (deindustrialization, corporate restructuring, bureaucratic burden, casualization, bad jobs, and multiple job holding) on metropolitan-level earnings inequality of full-time, full-year workers 16 years and older. Our study makes several major contributions to the literature. First, we update and extend the long line of studies on metropolitan earnings inequality. Second, we show that these various dimensions of globalization and labor market transformation exert independent and mainly polarizing effects on the earnings distributions of metropolitan areas, net of controls for labor market structure and sociodemographic variables. Third, we demonstrate the benefits of looking at the causes of inequality in the upper and lower tails of the earnings distribution. Finally, we develop a procedure to estimate counterfactual values of earnings inequality for all major metropolitan areas in the US in 2000. In the process, the paper provides a comprehensive accounting of the impact of globalization and labor market transformation on metropolitan earnings inequality.     

Self-selection in migration and returns to unobservables

We build a model of migration that considers both observable and unobservable individual characteristics and their returns across locations. We focus on the interprovincial migration patterns of Canadian physicians, in part, because physicians are paid on a fee-for-service basis. Because fees are exogenous, we can estimate a mixed conditional-logit model to determine the effects of individual- and destination-specific characteristics (particularly earnings differentials) on physician location decisions. We find, among other things, that individuals with greater earnings potential based on unobservables are more likely to migrate to provinces where the returns to such unobservables are greater.      

Immigrant assimilation pre and post labour market entry: evidence from the UK Labour Force Survey

We estimate models of employment an earnings for a sample of white and non-white male immigrants drawn from the Labour Force Survey between 1993 and 2004. Immigrants who arrived to enter the labour market (labour market entrants) are distinguished from those who arrived to complete their education (education entrants). Diverse patterns of labour market assimilation are found depending on ethnicity and immigrant type. Amongst labour market entrants, whites do better than non-whites, whilst amongst education entrants, highly qualified prime-age non-whites perform as well as their white counterparts. Relative to white natives, labour market outcomes for all immigrant groups have a tendency to decline with age.