Download or read book Essays on Models of the Labour Market with On the job Search written by Axel Gottfries and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Macroeconomics of the Labor Market written by Ioannis Kospentaris and published by . This book was released on 2018 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, I build macroeconomic models to answer questions of empirical relevance for the study of labor markets. The dissertation consists of an introductory overview and three research essays. The first essay is devoted to duration dependence in unemployment, namely the fact that recently unemployed workers have a signicantly better chance of finding a job than the long-term unemployed. I build a directed search model to quantify the importance of three common explanations for this fact: (i) unobserved worker differences, (ii) skill loss, and (iii) job-search effort decline. Two novel results emerge: first, the bulk of the effect of unobserved heterogeneity is concentrated in the first six months of the unemployment spell; the drop in job-finding rates observed at longer spells is mostly a result of skill loss and lower search effort. Second, skill loss has a vastly greater impact on job-finding than the decline in search effort. These results have two clear implications for labor market policy: (i) the impact of active labor market programs is expected to be larger for the long-term unemployed; (ii) job-training programs are expected to be more effective than job-search assistance policies at reducing long-term unemployment. In the second essay I study how information obtained by a worker while trying to find a job affects her job-search effort. Specically, I analyze how a worker, who is uncertain about her labor market traits and learns about them while looking for a job, allocates her search effort over the unemployment spell. The main result is that search effort is increasing over time when the worker is optimistic about her traits but decreasing when the worker is pessimistic about her traits. This result can explain discrepant empirical findings from previous literature on search effort. The final essay is devoted to job-search effort as an insurance channel. I build a model in which workers face substantial risk in the labor market but they have two means of self-insurance against this risk: increase their savings and their search effort. The main result is that when labor market risk becomes more severe workers increase both their savings and search effort but the increase in savings is twice as large as the increase in search effort. That is, workers make use of search effort as an insurance channel but much less than the savings channel.

Download or read book Essays on Job Search and Hiring in the Labor Market written by and published by . This book was released on 2015 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three essays on job search and hiring in the labor market. My first essay studies intra-household risk-sharing and job search behaviors over the business cycle. In the Great Recession, the U.S. national unemployment rate rose above 10%. The Unemployment Insurance benefits were extended to as many as 99 weeks in some states. Such measures may be excessive for married people that can share risks with a spouse. I estimate a dynamic model of unitary households in which spouses make joint job search and savings decision. I find that intra-household risk sharing exacerbates the counter-cyclicality of the unemployment rate, but mitigates the welfare costs of aggregate fluctuations. The results suggest the unemployment rate overstates the severity of a labor market recession for married workers. Given that spouses can share risks with one another, little is know about the efficiency of Unemployment Insurance (UI) programs in the household context. In my second essay, I compare the cost-effectiveness of various UI programs. The UI program is more cost-effective if the receipt of benefits is conditional on spousal non-employment or unemployment. In addition, the spousal unemployment requirement rewards intra-household risk sharing. As a result, the UI disproportionally benefit low-wealth households. Finally, I find little evidence that the UI program weakens intra-household coordination of search participation decisions. On the contrary, the spousal unemployment requirement strengthens the coordination between spouses. My third essay explores the mechanisms behind the phenomenon that both wage and the unemployment hazard rate decline with unemployment duration. I focus on two potential causes: skill depreciation and the stigma effects of unemployment duration. The identification of the two mechanisms can be achieved because the duration dependences of wage and hazard rate are affected by the mechanisms differently. I estimate a general equilibrium model with skill depreciation, unobserved worker heterogeneity, and an imperfect screening technology. Results show that less than 15% of the negative duration dependence of hazard rate is due to skill depreciation. In addition, I find that expansions that raise the meeting rate for workers substantially worsen negative duration dependence of unemployment hazard rate.

Download or read book Current Issues in Labour Economics written by David Sapsford and published by . This book was released on 1990 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume of essays attempts to examine and analyze recent developments in economic analysis. The essays cover implicit contract theory, job search model, bargaining theory, profit sharing models, institutionalist perspectives and other relevant issues.

Download or read book Essays on Macroeconomics and Labor Markets written by Ahmet Yusuf Mercan and published by . This book was released on 2018 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Job mobility – the rate at which employed workers change their jobs without experiencing unemployment in between – plays a significant role in shaping individual level economic outcomes as well aggregate labor market dynamics. At the micro level, workers climb up the job ladder and receive wage increases by changing employers. Experimentation by way of switching jobs leads young workers into their right career paths. At the aggregate level, job mobility might improve the allocative efficiency of the labor market by facilitating the match of productive workers and firms. This dissertation sheds light on two issues pertaining to job mobility in the U.S. Chapter 1 studies the observed decline in employer-to-employer transitions in the U.S. during the last two decades, and proposes an explanation for this downward trend. Chapter 2 proposes a framework for analyzing the excess unemployment risk following a job- to-job transition and lays the groundwork for a broader future research agenda. Chapter 1 starts from the observation that employer-to-employer (E-E) transi- tions have declined in the United States during the last 20 years from a monthly rate of 2.7 percent in 1996 to 1.7 percent in 2016. In this chapter, I study the factors behind this observed decline. I document that most of the decrease in E-E transitions is accounted for by declines in matches with less than 12 months of job tenure. I attribute this decline to an increase in information about the quality of job opportunities. I then develop a search model with heterogenous matches and on-the-job search with learning about match quality. I show that the information channel can be identified from the change in the wage growth of job switchers. I estimate my model and find that workers in recent years have substantially more in- formation about matches before they are formed, turning jobs into inspection goods rather than experience goods. I find that this increase in information explains 50 to 60 percent of the decline in job mobility over the last two decades. Chapter 2 starts from the empirical finding that the risk of job loss is concen- trated in the early months of the job; after the initially high levels of unemployment risk, jobs become stable. This chapter argues that this initial excess exposure to un- employment risk renders job-to-job transitions risky. It formalizes this mechanism in a search and matching model in which job offers are “lotteries”, placing probabilities on job qualities, which are revealed early on in the new job. Workers know the prob- ability weights, and lotteries are heterogeneous in those weights. A set of job quality realizations lead workers to prefer quitting into unemployment. In this model, job mobility is affected by the value of unemployment, which represents the downside risk of accepting a job lottery. This consideration constitutes a mobility friction for employed workers. It explores all these properties and predictions in a calibrated version of the model. The chapter also highlights a new role of unemployment in- surance (UI): In the model, UI insures the downside risk of job-to-job transitions, and thereby subsidizes job mobility of workers already employed, and tilts the job composition to ex-ante riskier jobs. Chapter 2 closes by discussing potential implica- tions of this new view of unemployment insurance. The study therefore sheds light on how labor market policies affect the behavior of employed job seekers through a novel “experimentation subsidy” channel.

Download or read book Essays on Frictional Labor Market written by Eunbi Ko and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation develops two models of frictional labor market which provide tools to understand some important phenomena of the US labor market.The first chapter models labor market choices of workers depending primarily on his/her marital status and the partner's labor market outcome if the worker is married. In the household of a married couple, an increase in the husband's wage leads to a rise in the number of days his wife remains out of the labor force. If only one of the couple is employed, a wage increase for the employed partner lengthens the spouse's unemployment duration. Moreover, if both are employed, their wages move in the same direction. To explain these stylized facts, I construct an equilibrium model of the labor market in which a married couple jointly chooses market participation and search for and separation from a job. Calibration shows that the model can correctly account for the facts. The unified framework with endogenous market participation and frictional search is necessary to correctly predict the correlations in spouses' labor market outcomes. Using the benchmark model, I do the policy experiments of unemployment insurance (UI) and the earned income tax credit (EITC). I show that generous UI can increase the employment-population ratio by mitigating married females' disincentive to participate in the market. I also show that the EITC increases the employment of single parents but it decreases the employment of workers who belong to other types of households. In the sense of welfare, the EITC enhances welfare for all single parents, but it reduces welfare of some married parents by reducing the value of working wives.In the second chapter, I construct a directed search model of the labor market with two types of workers and two types of firms to show that an asymmetric positive productivity shock could cause a recent upward shift of the US Beveridge curve. The model possesses an equilibrium in which unskilled workers apply to both high-tech and low-tech firms and skilled workers apply only to high-tech firms. The productivity difference between sectors affects unskilled workers' application strategy: the larger the productivity gap is, the more unskilled workers apply to high-tech firms. The calibration suggests that the productivity difference between sectors has become greater after the recession than before. This makes unskilled workers apply to a high-tech firm with a greater probability than before, which results in the lower average job-finding rate and an upward shift of the Beveridge curve.

Download or read book Four Essays on the Social Structure of Urban Labor Markets written by Theodore Dirk Mouw and published by . This book was released on 1999 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Empirical Search Models of the Labor Market written by James Mabli and published by . This book was released on 2006 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Essay on Labor Market Dynamics written by William Franklin Shughart and published by . This book was released on 1978 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Employment Service and Employers Recruitment Behaviour written by Lars Behrenz and published by . This book was released on 1998 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Networks and Labor Market Mobility written by Ian Schmutte and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation applies the tools of network analysis to study job mobility. Job mobility is a complex phenomenon, and network theory provides a novel and practical framework for dealing with this complexity in understanding how individuals move from job to job. My first essay measures the effect of job referral networks on search outcomes. The key contribution of this essay is providing evidence of one mechanism by which social interactions affect earnings. An on-the-job search model extended to include social transmission of job information yields an empirical specification in which ones current job offer depends on the average offer of his social contacts. Using block level variation in the quality of jobs held by ones residential neighbors, I find that when changing jobs an individual with better local network contacts will obtain a higher quality job. In addition to the main result, this paper provides new evidence on the spatial structure of the wage distribution within urban areas. In the second essay I apply network algorithms to detect groups of workers and employers with relatively homogeneous patterns of job mobility. Workers with interchangeable skills should have similar patterns of mobility across employers that use those skills in roughly the same way. Grouping workers and jobs solely on the basis of similar mobility patterns reveals labor market sectors with distinct compensation structures. My final essay, joint with John Abowd, uses network models to facilitate identification of employer-specific wage premia in a decomposition of log earnings from matched employer-employee data.

Download or read book Essays in Macroeconomics and Labor Markets written by Lawrence F. Warren and published by . This book was released on 2016 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contributes to the current understanding of labor markets, focusing on the use of micro level data and computational modeling to study the interaction of unemployment with various aspects of the macroeconomy. I address the fact that frictions in the labor market carry over into other dimensions of firms' and workers' decisions, such as a firm's incentive to utilize its current labor force, workers' participation in the labor market, and the decision to acquire or discharge debt. In Chapter 1, I study involuntary part-time employment over the business cycle. I document that the population at work part-time for economic reasons ($PTE$) is countercyclical, volatile, and transitory. Workers in $PTE$ are nearly three times more likely than the unemployed to return to full-time work in a given month, and seven times more likely than full-time workers to become unemployed. Using household survey data, I demonstrate that cyclical fluctuations in $PTE$ come from changes in the transition rates between full-time and part-time employment rather than between part-time and unemployment. Moreover, these movements are primarily due to within-job changes in hours. Accordingly, I model part-time work focusing on a firm's decision to hire, fire, or partially utilize its labor force. Firms in the model are heterogeneous in size and productivity, and are subject to search frictions. The model produces firm-level utilization of part-time employment which is consistent with observed worker flows, and varies across the size and age distributions of firms. Over the business cycle, the model matches the observed relative volatility of unemployment and $PTE$. Part-time labor utilization by firms increases the volatility of vacancies and unemployment in the model relative to the case with only an extensive margin. Chapter 2 studies the interaction of a participation margin in a labor market search model.

Download or read book Essays on Labor Market with Heterogeneous Workers written by Eunsun Gil and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays in my dissertation examine how economic downturn and job composition affect heterogeneous workers in the labor market. In Chapter 1, I assert that slow recovery in aggregate employment compared to aggregate output in the United States consist of jobless growth in manufacturing and information industries. I observe the industrial transition of unemployed workers to demonstrate labor reallocation triggered by a decline of middle-wage jobs. I simulate the jobless growth and vertical reallocation in general equilibrium model with sorting and optimal submarket choices. In Chapter 2, I quantify recession effect on annual labor income for heterogeneous workers. I find that low-wage workers earn less annually mostly because of lower working hours through unemployment, whereas high-wage workers lose their annual earnings primarily due to lower hourly rates of job-to-job transition. I explain decreasing layoff risk (extensive margin) and increasing wage-cut risk (intensive margin) to previous wage rate in an on-the-job search model with real business cycles. In Chapter 3, I reassess transitional dynamics of unemployment and vacancy rate in a homogeneous agents search model, by allowing sunk entry costs and discrete productivity process. The entry costs allow a positive outside option for a vacant firm so that an outside firm and vacant firm make different labor market participation and hiring choices. When economy transit between two steady-state equilibria, the vacancy rate is no more a jump variable, and an outward (inward) shift is expected before reaching a low (high) productivity equilibrium.

Download or read book Essays on Labor Market with Heterogeneous Workers written by Eunsun Gil and published by . This book was released on 2018 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays in my dissertation examine how economic downturn and job composition affect heterogeneous workers in the labor market. In Chapter 1, I assert that slow recovery in aggregate employment compared to aggregate output in the United States consist of jobless growth in manufacturing and information industries. I observe the industrial transition of unemployed workers to demonstrate labor reallocation triggered by a decline of middle-wage jobs. I simulate the jobless growth and vertical reallocation in general equilibrium model with sorting and optimal submarket choices. In Chapter 2, I quantify recession effect on annual labor income for heterogeneous workers. I find that low-wage workers earn less annually mostly because of lower working hours through unemployment, whereas high-wage workers lose their annual earnings primarily due to lower hourly rates of job-to-job transition. I explain decreasing layoff risk (extensive margin) and increasing wage-cut risk (intensive margin) to previous wage rate in an on-the-job search model with real business cycles. In Chapter 3, I reassess transitional dynamics of unemployment and vacancy rate in a homogeneous agents search model, by allowing sunk entry costs and discrete productivity process. The entry costs allow a positive outside option for a vacant firm so that an outside firm and vacant firm make different labor market participation and hiring choices. When economy transit between two steady-state equilibria, the vacancy rate is no more a jump variable, and an outward (inward) shift is expected before reaching a low (high) productivity equilibrium.

Download or read book Essays on the Macroeconomics of Labor Market Institutions written by and published by . This book was released on 2014 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis contributes to furthering the understanding of the macroeconomic impact of two types of labor market institutions: temporary help service agencies and temporary contracts. In the first chapter, I depart from the observation that employment in the temporary help service industry in the United States has seen a secular rise in recent decades. The chapter provides a theory of the temporary help service industry within the steady state version of a random search model of the labor market with endogenous job destruction and a second sector in which employment relationships are intermediated. In this framework temporary jobs are endogenously of short duration and recruitment is fast. Conditions are provided under which intermediated employment relationships exist in equilibrium. The implications of the model for two possible explanations of the secular rise of employment in the temporary help service industry, technological progress and a rise in firm-level uncertainty, are such that technological progress as an explanation is favored. In the second chapter, I investigate the impact of uncertainty shocks on a dual labor market using the Spanish economy as a case study. In an empirical analysis, I find that, given my identification strategy, fluctuations in uncertainty cause a significant drop in temporary employment, a non-significant reaction in permanent employment and a significant decline in GDP. Since in the data the responses to a second-moment shock are similar to the responses to a first-moment shock, a quantitative labor demand model of the Spanish labor market is built and calibrated. I use this model to generate simulated response functions to a (pure) second-moment, a (pure) first-moment and a combined first- and second moment shock. I find that the empirical impulse responses can only partially be rationalized by the model when considering a (pure) second-moment shock. A (pure) first moment shock in the model generates impulse response functions similar to the empirical ones. A combined first- and second moment shock cannot improve on the first-moment shock in replicating the data.

Download or read book Essays on Job Referrals in the Labor Market written by Ji Woong Moon and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three chapters. The first chapter empirically studies the effects of job referrals in the labor market, and the second chapter provides a theoretical explanation on the empirical findings. The third chapter explores the aggregate implications of job referrals quantitatively. In the U.S labor market, a majority of workers use referrals when searching for a job, but relatively little is known about how the quality of information transmitted through referrals is determined. In the first chapter, using recent survey data, I document that the effects of referrals are different between the currently employed searchers and the unemployed. Job referrals increase wages and job-finding probability for the employed searchers, but have statistically insignificant effects for the unemployed. In the second chapter of my dissertation, I build an equilibrium model of on-the-job search and referrals to capture these patterns and use it to understand how referrals affect the aggregate labor market. A novel feature of the model is that the extent of information transmission through referrals is endogenously determined by a strategic game. In equilibrium, referrals are endogenously more informative when the match surplus for firms is low. Consequently, the employed searchers benefit more from referrals as they search for high wage jobs, and the quality of information transmitted through referrals improves during recessions. In the third chapter, I calibrate the model and quantify the effects of job referrals on the aggregate labor market. The results show that referrals increase steady-state welfare substantially about 3-5% through better match quality. Referrals increase inequality, but mostly by benefiting workers who can use social connections.

Download or read book Essays on Labor Market Mechanisms written by Ana Luisa Toledo Piza Pessoa Araujo and published by . This book was released on 2015 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies the interaction between job stability and labor markets. Chapter 1 studies the impact of firm turnover and job recall on wages. I start this chapter with an empirical contribution. I demonstrate the importance of recall and turnover for employment dynamics and wages using matched employer-employee data from Brazil. First, I document large dispersion of job-destruction rates and recall rates across sectors. Second, I show that after controlling for worker and firm characteristics, sectors with greater job instability (an inverse measure of tenure that controls for recall) pay more. To explain this finding I construct a multi-sector closed economy version of Mortensen and Pissarides (1994) with directed search and heterogeneous recall rates as well as heterogeneous layoff rates across sectors. Once I have estimated the model's parameters using the data, I then conduct the main experiment which is to assess the impact of Brazil's recall restrictions on employment dynamics. The Brazilian government bans recalls within 3 months of the date of firing. I simulate the imposition of this law, and I find that this restriction on recall activity decreases the employment rate significantly in aggregate, but the impact is very heterogeneous across sectors. Chapter 2, studies wage inequality and job stability. I start this chapter with a data motivation where I use matched employer-employee data to establish that separations are disproportionately comprised of layoffs for low wage workers, not separations due to job-to-job transitions. Secondly, I show that existing models such as Burdett and Coles (2003) and Shi (2009) are inconsistent with this fact since they assume that the exogenous component of job destruction is constant across firms, and low wage workers search on-the-job much more intensely than high wage workers. To explain this fact, I develop a new model that takes into account the disproportionate share of layoffs among low wage workers. I show that after correctly matching the wage/layoff relationship, the introduction of a 30% `firing cost' results in nearly twice as much wage inequality as compared to a model with a homogeneous firing rate across firms.