Download or read book Mismatch in Local Labor Markets written by Timothy J. Bartik and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the effects on local labor market outcomes (employment rates, real wages, real earnings) of local labor demand shocks to different types of occupations. Occupations are divided into three groups, “high, middle, and low,” with occupations differing in wages paid and education credentials required. Effects are considered on both workers with less than a four-year college degree and workers with a bachelor’s degree or higher. The strongest benefits for labor market outcomes come from demand shocks to “mid jobs.” Mid-job demand shocks particularly benefit less-educated workers. High-job demand shocks often hurt labor market outcomes for less-educated workers, in part because such shocks push up local prices. Low-job demand shocks sometimes improve labor market outcomes for less-educated workers, and sometimes damage labor market outcomes for more-educated workers. Estimated labor demand effects also vary in different types of local labor markets. For example, when baseline local labor market conditions are tight (high baseline employment rate), less-educated workers gain more in real earnings from low-demand shocks, and lose more in real earnings from high-demand shocks.

Download or read book Local Labor Market Size and Qualification Mismatch written by Francesco Berlingieri and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the effect of the size of the local labor market on skill mismatch. Using survey data for Germany, I find that workers in large cities are both less likely to be overqualified for their job and to work in a different field than the one they are trained for. Different empirical strategies are employed to account for the potential sorting of talented workers into more urbanized areas. Results on individuals never moving from the place of childhood and fixed-effects estimates obtaining identification through regional migrants suggest that sorting does not fully explain the existing differences in qualification mismatch across areas. This provides evidence of the existence of agglomeration economies through better matches. However, lower qualification mismatch in larger cities is found to explain only a small part of the urban wage premium.

Download or read book How Effects of Local Labor Demand Shocks Vary with Local Labor Market Conditions written by Timothy J. Bartik and published by . This book was released on 2014 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates how effects of shocks to local labor demand on local labor market outcomes vary with initial local economic conditions. The data are on U.S. metro areas from 1979 to 2011. The paper finds that demand shocks to local job growth have greater effects in reducing local unemployment rates if the local economy is initially depressed than if the local economy is booming. Demand shocks have greater effects on local wage rates if the local unemployment rate is initially low, but lesser effects if local job growth is initially high. These different effects of local demand shocks imply that social benefits of adding jobs are two to three times greater per job in more depressed local labor markets, compared to more booming local labor markets.

Download or read book The Dynamic Effects of Local Labor Market Shocks on Small Firms in The United States written by Mr. Philip Barrett and published by International Monetary Fund. This book was released on 2024-03-22 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use payroll data on over 1 million workers at 80,000 small firms to construct county-month measures of employment, hours, and wages that correct for dynamic changes in sample composition in response to business cycle fluctuations. We use this to estimate the response of small firms' employment, hours and wages following tighter local labor market conditions. We find that employment and hours per worker fall and wages rise. This is consistent with the predictions of the response to a demand shock in the well-known “jobs ladder” model of labor markets. To check this interpretation, we show our results hold when instrumenting for local demand using county-level Department of Defense contract spending. Correction for dynamic sample bias is important -- without it, the hours fall by only one third as much and wages increase by double.

Download or read book Qualitative Mismatches written by Michael Sattinger and published by Now Pub. This book was released on 2012 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Qualitative Mismatches develops the distinction between short run qualitative mismatches for individual workers and employers and long run aggregate qualitative mismatches arising from changes in the quantity demanded or supplied in a category of the labor market. Without the distinction between the two forms, a measurement of one could be mistaken for the other. The methods and data used to examine the two forms of qualitative mismatches also differ. Short run qualitative mismatches arise as a consequence of extensive job and worker variety combined with imperfect information and frictions in the labor market that require workers and employers to engage in search to establish employment. Short run qualitative mismatches are studied by examining how the labor market assigns workers to jobs through search by workers and employers, and how qualitative mismatches arise as a consequence of the strategies of workers and employers in the presence of costly search. In contrast, long run aggregate qualitative mismatches arise when the economy changes in a way that alters the mix of job characteristics, or the incentives for individuals to obtain education and training change in a way that alters the mix of worker characteristics. Long run qualitative mismatches are studied by examining the consequences of trends in economies and societies that generate shifts in demands and supplies, including technology, globalization, organization of work, and educational institutions. Qualitative Mismatches explains that mismatches at a point in time can be regarded as arising from three sources. First, there is a level that arises from the search procedures that workers use to find jobs and employers use to find workers. Second, there is a level of mismatch that arises over the course of a business cycle as a result of workers with high education and skill levels taking jobs at which they are overqualified during high unemployment, or firms hiring workers that do not meet their requirements during low unemployment. Third, there are additional mismatches that could arise if there are imbalances between supplies and demands from long run aggregate qualitative mismatches. It is possible that over-qualification at one level could cancel out some under-qualification at another level, so that the three levels are not simply added together.

Download or read book The Overeducated American written by Richard Barry Freeman and published by New York : Academic Press. This book was released on 1976 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analyzes the 1970s downturn in the labor market for college-educated manpower, considers consequences for educational institutions, and explores policies for alleviating the situation. Bibliogs

Download or read book Labor Markets and Business Cycles written by Robert Shimer and published by Princeton University Press. This book was released on 2010-04-12 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: Labor Markets and Business Cycles integrates search and matching theory with the neoclassical growth model to better understand labor market outcomes. Robert Shimer shows analytically and quantitatively that rigid wages are important for explaining the volatile behavior of the unemployment rate in business cycles. The book focuses on the labor wedge that arises when the marginal rate of substitution between consumption and leisure does not equal the marginal product of labor. According to competitive models of the labor market, the labor wedge should be constant and equal to the labor income tax rate. But in U.S. data, the wedge is strongly countercyclical, making it seem as if recessions are periods when workers are dissuaded from working and firms are dissuaded from hiring because of an increase in the labor income tax rate. When job searches are time consuming and wages are flexible, search frictions--the cost of a job search--act like labor adjustment costs, further exacerbating inconsistencies between the competitive model and data. The book shows that wage rigidities can reconcile the search model with the data, providing a quantitatively more accurate depiction of labor markets, consumption, and investment dynamics. Developing detailed search and matching models, Labor Markets and Business Cycles will be the main reference for those interested in the intersection of labor market dynamics and business cycle research.

Download or read book Essays on the Economics of Local Labor Markets written by Matt Notowidigdo and published by . This book was released on 2010 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis studies the economics of local labor markets. There are three chapters in the thesis, and each chapter studies how economic outcomes are affected by local labor market conditions. The first chapter studies the incidence of local labor demand shocks. This chapter starts from the observation that low-skill workers are comparatively immobile. When labor demand slumps in a city, college-educated workers tend to relocate whereas non college workers are disproportionately likely to remain to face declining wages and employment. A standard explanation of these facts is that mobility is more costly for low-skill workers. This chapter proposes and tests an alternative explanation, which is that the incidence of adverse shocks is borne in large part by (falling) real estate rental prices and (rising) social transfers. These factors reduce the real cost of living differentially for low-income workers and thus compensate them, in part or in full, for declining labor demand. I develop a spatial equilibrium model which, appropriately parameterized, identifies both the magnitude of unobserved mobility costs by skill and the shape of the local housing supply curve. Nonlinear reduced form estimates using U.S. Census data document that positive labor demand shocks increase population more than negative shocks reduce population, that this asymmetry is larger for lows kill workers, and that such an asymmetry is absent for wages, housing values, and rental prices. Estimates of the full model using a nonlinear, simultaneous equations GMM estimator suggest that (1) the asymmetric population response is primarily accounted for by an asymmetric housing supply curve, (2) the differential migration response by skill is primarily accounted for by transfer payments, and (3) estimated mobility costs are at most modest and are comparable for high-skill and low-skill workers, suggesting that the primary explanation for the comparative immobility of low-skilled workers is not higher mobility costs per se, but rather a lower incidence of adverse labor demand shocks. The second chapter, written jointly with Daron Acemoglu and Amy Finkelstein, studies how local area health spending responds to permanent changes in local area income. This chapter is motivated by the fact that health expenditures as a share of GDP have more than tripled over the last half century, and a common conjecture is that this is primarily a consequence of rising real per capita income, which more than doubled over the same period. We investigate this hypothesis empirically by instrumenting for local area income with time-series variation in global oil prices between 1970 and 1990 interacted with cross-sectional variation in the oil reserves across different areas of the Southern United States. This strategy enables us to capture both the partial equilibrium and the local general equilibrium effects of an increase in income on health expenditures. Our central estimate is an income elasticity of 0.7, with an elasticity of 1.1 as the upper end of the 95 percent confidence interval. Point estimates from alternative specifications fall on both sides of our central estimate, but are almost always less than 1. We also present evidence suggesting that there are unlikely to be substantial national or global general equilibrium effects of rising income on health spending, for example through induced innovation. Our overall reading of the evidence is that rising income is unlikely to be a major driver of the rising health share of GDP. The third chapter, written jointly with Kory Kroft, studies theoretically and empirically how optimal Unemployment Insurance (UI) benefits vary with local labor market conditions. Theoretically, we derive the relationship between the moral hazard cost of UI and the unemployment rate in a standard search model. The model motivates our empirical strategy which tests whether the effect of UI benefits on unemployment durations varies with the local unemployment rate. In our preferred specification, a one standard deviation increase in the local unemployment rate reduces the magnitude of the duration elasticity by 32%. Using this estimate to calibrate the optimal level of UI benefits, we find that a one standard deviation increase in the unemployment rate leads to a 6.4 percentage point increase in the optimal replacement rate. JEL classification: J61, 110, J65.

Download or read book Mismatch in the Labor Market written by and published by . This book was released on 2003-01-01 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Employability and Local Labour Markets written by Ronald W. McQuaid and published by Routledge. This book was released on 2013-10-18 with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt: The concept of employability has provided a foundation for much current labour market policy. It has also provided a useful framework for analyzing national and urban labour markets and related policies in a variety of different circumstances both for those in and out of work. The papers in this book help progress the concept of employability, demonstrating the importance of the geographic and spatial context, and showing its flexibility and usefulness as a basis for theory, analysis and policy. The papers are divided into two main sections: understanding the concept of employability lessons for labour market policy in changing labour markets. The chapters also provide general insights into many current labour market policy debates. As employability continues to be the foundation of many labour market policies, this volume considers the economic and geographical dimensions of employability in local labour market analysis and policy. This book was previously published as a special issue of the journal Urban Studies.

Download or read book Skill Mismatch in Labor Markets written by Solomon W. Polachek and published by Emerald Group Publishing. This book was released on 2017-05-15 with total page 476 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume contains original research articles which analyze the linkages between education and skills and the causes and consequences of different types of skill mismatch. The volume yields new insights regarding overeducation, underskilling, graduate jobs, wages returns to skills, aggregate productivity, job complexity and skill development.

Download or read book Wage and Employment Adjustment in Local Labor Markets written by Randall W. Eberts and published by W. E. Upjohn Institute. This book was released on 1992 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mismatch in the Labor Market written by Alicia Sasser Modestino and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mismatch Unemployment written by Aysegul Sahin and published by . This book was released on 2012 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a framework where mismatch between vacancies and job seekers across sectors translates into higher unemployment by lowering the aggregate job-finding rate. We use this framework to measure the contribution of mismatch to the recent rise in U.S. unemployment by exploiting two sources of cross-sectional data on vacancies, JOLTS and HWOL, a new database covering the universe of online U.S. job advertisements. Mismatch across industries and occupations explains at most 1/3 of the total observed increase in the unemployment rate, whereas geographical mismatch plays no apparent role. The share of the rise in unemployment explained by occupational mismatch is increasing in the education level.

Download or read book Local Labor Markets and Higher Education Mismatch written by Elena Arias Ortiz and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze mismatches between local labor markets and higher education enrollments in 22 educational fields across 137 mesoregions in Brazil between 2009 and 2016 using a two-stage regression model. Local labor markets have a significant effect on enrollment rates by field in higher education institutions and need to be considered by educational policies to prevent skill mismatches. Moreover, a large share of public universities, urban population and low unemployment rates are associated with low mismatches. Public universities address skills shortages, particularly in poor regions and natural sciences, better than private universities that contribute to oversupply, e.g. in business or law.

Download or read book Is Labor Market Mismatch a Big Deal in Japan written by Mr.Ippei Shibata and published by International Monetary Fund. This book was released on 2013-09-17 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite its low unemployment rate, the recent shift in the Japanese Beveridge curve indicates increased labor mismatch. This paper quantifies the age, employment-type (full or part-time), and occupational mismatch in the Japanese labor market following Sahin and others (2013). Between April 2000 and April 2013, the age mismatch has steadily declined while the occupational and employmenttype mismatch has shown a countercyclical pattern, showing a sharp increase during the global financial crisis. Occupational mismatch accounted for approximtely 20-40 percent of the recent rise in the unemployment rate in Japan. The magnitude was comparable to that of the U.K. and the U.S.

Download or read book The Effects of Local Labor Demand on Individual Labor Market Outcomes for Different Demographic Groups and the Poor written by Timothy J.. Bartik and published by . This book was released on 1993 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: