The NEP-LTV Blog

September 27, 2010

This blog is an experiment to explore the feasibility of scientific discussion on an Economics blog. NEP-LTV disseminates every week new working papers in the field of Unemployment, Inequality & Poverty. Among them, the NEP-LTV editor selects one to be discussed. Everyone is invited to comment. Try to stay civil, or your comments will be removed. And encourage others to read or join in the discussion.

Tony Atkinson and his Legacy

August 11, 2017
By: A Brandolini ; Stephen P Jenkins ; John Micklewright
Tony Atkinson is universally celebrated for his outstanding contributions to the measurement and analysis of inequality, but he never saw the study of inequality as a separate branch of economics. He was an economist in the classical sense, rejecting any sub-field labelling of his interests and expertise, and he made contributions right across economics. His death on 1 January 2017 deprived the world of both an intellectual giant and a deeply committed public servant in the broadest sense of the term. This collective tribute highlights the range, depth and importance of Tony’s enormous legacy, the product of over fifty years’ work.
Keywords: Atkinson

The Difficult School-to-Work Transition of High School Dropouts: Evidence from a field experiment

August 11, 2017
By: Cahuc, Pierre ; Carcillo, Stéphane ; Minea, Andreea
This paper investigates the effects of the labor market experience of high school dropouts four years after leaving school by sending fictitious resumes to real job postings in France. Compared to those who have stayed unemployed since leaving school, the callback rate is not raised for those with employment experience, whether it is subsidized or non-subsidized, in the market or non-market sector, if there is no training accompanied by skill certification. In particular, we find no stigma effect associated with subsidized or non-market sector work experience. Moreover, training accompanied by skill certification improves youth prospects only when the local unemployment rate is sufficiently low, which occurs in one fifth of the commuting zones only.
Keywords: Job subsidies; Training; youth unemployment
JEL: J60 J68

Populism and the Economics of Globalization

August 11, 2017
By: Rodrik, Dani
Populism may seem like it has come out of nowhere, but it has been on the rise for a while. I argue that economic history and economic theory both provide ample grounds for anticipating that advanced stages of economic globalization would produce a political backlash. While the backlash may have been predictable, the specific form it took was less so. I distinguish between left-wing and right-wing variants of populism, which differ with respect to the societal cleavages that populist politicians highlight. The first has been predominant in Latin America, and the second in Europe. I argue that these different reactions are related to the relative salience of different types of globalization shocks.
Keywords: Globalization; populism
JEL: G02

Economics of a good night’s sleep

August 11, 2017
By: Joan Costa-i-Font ; Sarah Flèche
Parents whose sleep quality is reduced by young children waking them in the night are less likely to work, work shorter hours and/or earn less than otherwise similar people who enjoy a good night’s sleep. The negative labour market effects of sleep disruption caused by children are particularly strong for low-skilled mothers. These are among the findings of research by Joan Costa-i-Font and Sarah Flèche, which uses data on 14,000 families in and around the city of Bristol in the UK to investigate the link between mothers’ employment outcomes and their quality of sleep, measured by how much they are woken by their children at night. The researchers note that before now, the effects of sleep deprivation on economic activity have received surprisingly scant attention.
Keywords: child sleep, sleep, maternal employment, working hours, job satisfaction
JEL: J13 J22 I18 J28

Firms and Labor Market Inequality: Evidence and Some Theory

August 11, 2017
By: David Card ; Ana Rute Cardoso ; Jörg Heining ; Patrick Kline
We synthesize two related literatures on firm-level drivers of wage inequality. Studies of rent sharing that use matched worker-firm data find elasticities of wages with respect to value added per worker in the range of 0.05 to 0.15. Studies of wage determination with worker and firm fixed effects typically find that firm-specific premiums explain 20% of overall wage variation. To interpret these findings we develop a model of wage setting in which workers have idiosyncratic tastes for different workplaces. Simple versions of this model can rationalize standard fixed effects specifications and also match the typical rent-sharing elasticities in the literature.
Keywords: Rent sharing, two-way fixed effects, Monopsony
JEL: D22 J31 J42

Big Data and Unemployment Analysis

August 11, 2017
By: Simionescu, Mihaela ; Zimmermann, Klaus F.
Internet or “big” data are increasingly measuring the relevant activities of individuals, households, firms and public agents in a timely way. The information set involves large numbers of observations and embraces flexible conceptual forms and experimental settings. Therefore, internet data are extremely useful to study a wide variety of human resource issues including forecasting, nowcasting, detecting health issues and well-being, capturing the matching process in various parts of individual life, and measuring complex processes where traditional data have known deficits. We focus here on the analysis of unemployment by means of internet activity data, a literature starting with the seminal article of Askitas and Zimmermann (2009a). The article provides insights and a brief overview of the current state of research.
Keywords: big data,unemployment,internet,Google,internet penetration rate
JEL: C22 C82 E17 E24 E37

Why Are Some Immigrant Groups More Successful than Others?

August 11, 2017
By: Edward P. Lazear
Success, measured by earnings or education, of immigrants in the US varies dramatically by country of origin. For example, average educational attainment among immigrants ranges from 9 to 16 years, depending on source country. Perhaps surprisingly, immigrants from Algeria have higher educational attainment than those from Israel or Japan. Also true is that there is a strong inverse relation of attainment to number of immigrants from that country. These patterns result because in the US, immigrant slots are rationed. Selection from the top of the source country’s ability distribution is assumed and modeled. The main implications are that average immigrant attainment is inversely related to the number admitted from a source country and positively related to the population of that source country. The results are unequivocally supported by results from the American Community Survey. Additionally, a structural model that is more explicit in the assumptions and predictions fits the data well.
JEL: F22 J01 J15 J61 M5