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  • 1
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    Essen: Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
    Publication Date: 2019-03-13
    Description: Using an innovative dataset for ICT use for five countries in Europe,we examine the impact and association of ICT on socio-economic exclusion.Using OLS regression we find significant wage premiums for PC and internet usage at the workplace.Following Dinardo/Fortin/Lemieux (1997),we examine the impact of ICT on the distribution of wages.We find that the risk of economic exclusion increases markedly for those not having ICT at the workplace,with the largest effects being found in Britain.To examine the impact of ICT on social exclusion,we create a multi-dimensional index of social exclusion,and also following DFL97,examine the change in the distribution of the exclusion index.Not being able to afford or knowing how to operate a home PC in Britain and Israel is associated with a large increase in the risk of social exclusion.
    Keywords: I31 ; J31 ; I32 ; ddc:330 ; Exclusion ; Wage Differentials ; Training ; Lohnstruktur ; Computergestütztes Verfahren ; Informationstechnik ; Internet ; Soziale Isolation ; Schätzung ; Großbritannien ; Italien ; Deutschland ; Norwegen ; Israel
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 2
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: We here consider the effect of the level of income that individuals consider to be fair for the job they do, which we take as measure of comparison income, on both subjective well-being and objective future job quitting. In six waves of German Socio-Economic Panel data, the extent to which own labour income is perceived to be unfair is significantly negatively correlated with subjective well-being, both in terms of cognitive evaluations (life and job satisfaction) and affect (the frequency of feeling happy, sad and angry). Perceived unfairness also translates into objective labour-market behaviour, with current unfair income predicting future job quits.
    Keywords: D63 ; J28 ; J31 ; ddc:330 ; fair income ; subjective well-being ; quits ; SOEP
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 3
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    Seville: European Commission, Joint Research Centre (JRC)
    Publication Date: 2019-08-28
    Description: The markets for talent often produce large income inequality and therefore raise political attention. While such inequality can be due to superstar dynamics or factor complementarities, Terviö ("Superstars and Mediocrities: Market Failure in The Discovery of Talent", the Review of Economic Studies, 2009) first proposed a market failure that was previously unknown to the literature, pointing to long-term contracts as a solution. I extend the model in Terviö (2009) to include personal income tax policy reforms and demonstrate that tax design can be employed as a solution to the market failure when long-term contracts are unfeasible. With small enough entry payments that novice workers would sustain to compensate employers for the cost of learning, both a progressive tax and a tax incentive on entry wages are found effective. The tax incentive on entry wages, though, can be used even with very large deductible entry payments and with overall negative net entry wages.
    Keywords: H21 ; H24 ; J31 ; J6 ; ddc:330 ; superstars ; personal income tax ; entry wage ; talent ; learning
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 4
    Publication Date: 2019-09-04
    Description: This article presents the eqregsel command for implementing the estimation and bootstrap inference of sample selection models via extremal quantile regression. The command estimates a semiparametric sample selection model without instrument or large support regressor, and outputs the point estimates of the homogenous linear coefficients, their bootstrap standard errors, as well as the p-value for a specification test.
    Keywords: C21 ; C24 ; C87 ; J31 ; ddc:330 ; extremal quantile regressions ; sample selection models ; eqregsel
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 5
    Publication Date: 2019-03-01
    Description: We adopt a general equilibrium approach in order to measure the effects of recent immigration on the Western German labor market, looking at both wage and employment effects. Using the Regional File of the IAB Employment Subsample for the period 1987-2001, we find that the substantial immigration of the 1990's had no adverse effects on native wages and employment levels. It had instead adverse employment and wage effects on previous waves of immigrants. This stems from the fact that, after controlling for education and experience levels, native and migrant workers appear to be imperfect substitutes whereas new and old immigrants exhibit perfect substitutability. Our analysis suggests that if the German labor market were as 'flexible' as the UK labor market, it would be more efficient in dealing with the effects of immigration.
    Keywords: E24 ; F22 ; J61 ; J31 ; ddc:330 ; Immigration ; Skill Complementarities ; Employment ; Wages
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 6
    Publication Date: 2015-05-22
    Description: We consider the estimation of a semiparametric location-scale model subject to endogenous selection, in the absence of an instrument or a large support regressor. Identification relies on the independence between the covariates and selection, for arbitrarily large values of the outcome. In this context, we propose a simple estimator, which combines extremal quantile regressions with minimum distance. We establish the asymptotic normality of this estimator by extending previous results on extremal quantile regressions to allow for selection. Finally, we apply our method to estimate the black-white wage gap among males from the NLSY79 and NLSY97. We find that premarket factors such as AFQT and family background characteristics play a key role in explaining the level and evolution of the black-white wage gap.
    Keywords: C21 ; C24 ; J31 ; ddc:330 ; sample selection models ; extremal quantile regressions ; black-white wage gap
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 7
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    Munich: Center for Economic Studies and Ifo Institute (CESifo)
    Publication Date: 2018-04-12
    Description: The growing finance wage premium is related to a modest net reallocation of skilled workers from non-finance sectors into finance in a broad sample of 24 countries over 35 years. The reallocation is higher when the finance wage premium grows faster than the contribution of the financial sector to the economy, which we proxy with the relative value added of finance. More innovative sectors and sectors exhibiting lower labor-transition costs face a higher reallocation of skilled workers. Yet, the growing finance wage premium is unrelated to sectoral or aggregate growth, to countries’ innovative capacity, to student enrollment in STEM degrees, and to the riskiness, efficiency, and competitiveness of banking sectors. Overall, the reallocation of skilled labor implied by a growing finance wage premium appears too modest to materially affect economic growth.
    Keywords: D72 ; G20 ; J23 ; J31 ; N20 ; ddc:330 ; finance wage premium ; skilled labor ; misallocation ; growth ; innovation ; banking sector.
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 8
    Publication Date: 2018-06-28
    Description: In this paper we analyze the impact of immigrants on the type and quantity of native jobs. We use data on fifteen Western European countries during the 1996-2010 period. We find that immigrants, by taking manual-routine type of occupations pushed natives towards more complex (abstract and communication) jobs. Such positive reallocation occurred while the total number of jobs held by natives was unaffected. This job upgrade was associated in the short run to a 0.6% increase in native wages for a doubling of the immigrants' share. These results are robust to the use of two alternative IV strategies based on past settlement of immigrants across European countries measured alternatively with Census or Labor Force data. The job upgrade slowed, but did not come to a halt, during the Great Recession. We also document the labor market flows behind it: the complexity of jobs offered to new native hires was higher relative to the complexity of lost jobs. Finally, we find evidence that such reallocation was significantly larger in countries with more flexible labor laws and that his tendency was particularly strong for less educated workers.
    Keywords: J24 ; J31 ; J61 ; ddc:330 ; Immigration ; Jobs ; Task specialization ; Employment Protection Laws ; Europe
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 9
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    Louvain-la-Neuve: European Regional Science Association (ERSA)
    Publication Date: 2017-08-03
    Description: The urban economics literature provides ample evidence of an urban wage premium: wages are higher in larger urban areas. This paper addresses three central issues of the urban wage premium about which the field has not yet reached a consensus. First, the extent to which sorting of high ability individuals into urban areas explains the urban wage premium. Second, which of the major agglomeration economies might generate this premium. Third, whether workers receive this wage premium immediately, or through faster wage growth over time. In order to consider these issues we use worker-level data from a large panel of British workers for the period 1998 to 2009. We first document the existence of an urban wage premium and more specifically a city size premium for Britain which persists when we control for both observed and unobserved time-invariant characteristics of workers. We also provide evidence of a city size premium on wage growth, but show that this is driven purely by the increase in wage that occurs in the first year that a worker moves to a larger location. When we exclude move years, we find no evidence of an urban wage growth premium. If as Glaeser and Maré (2001) argue, an urban wage growth premium is evidence of faster learning in cities then either this mechanism is not at work for Britain or faster learning is not reflected in wage growth. Wheeler (2006) suggests that the role of learning and matching in the urban wage growth premium might be particularly important for younger workers. Again, in the British context, we find little evidence to support this. We next examine whether living in an urban area affects the extent to which wage growth occurs on the job or as a result of changing jobs. Once we control for unobservable characteristics of workers we find no evidence that working in a larger urban area has any effect on either of these two components of wage growth. This result is also in contrast with the conclusions made in the US literature in favour of the role of learning and matching in cities. City living does have some impact on wage growth, however. Specifically, we show that workers who have at some point lived in a city experience faster wage growth than those who have never lived in a city.
    Keywords: R23 ; J31 ; ddc:330 ; urban wage premium ; agglomeration ; cities ; wage growth ; worker mobility
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 10
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    Kiel, Hamburg: ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
    Publication Date: 2017-10-02
    Description: Manpower constraints are the pervasive lack of specialized high- and low-skill workers, irrespective of the wage firms might offer.
    Keywords: J21 ; J31 ; J61 ; G31 ; G32 ; ddc:330
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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