Long-Term Labor Market Consequences of Costly Signaling: Evidence from a Natural Experiment

2021 ◽  
pp. 000-000
Author(s):  
Somdeep Chatterjee ◽  
Jai Kamal
Keyword(s):  
Labor Market ◽  
Natural Experiment ◽  
Costly Signaling ◽  
Market Consequences ◽  
Term Labor

Intergenerational Earnings Mobility in Italy

2007 ◽  
Vol 7 (2) ◽  
Author(s):  
Sauro Mocetti
Keyword(s):  
Labor Market ◽  
Least Squares ◽  
Household Income ◽  
Intergenerational Mobility ◽  
Least Squares Method ◽  
Developed Countries ◽  
Data Set ◽  
Labor Market Success ◽  
Term Labor

Abstract This paper contributes to the growing number of studies on intergenerational mobility by providing a measure of earnings elasticity for Italy. The absence of an appropriate data set is overcome by adopting the two-sample two-stage least squares method. The analysis, based on the Survey of Household Income and Wealth, shows that intergenerational mobility is lower in Italy than it is in other developed countries. We also examine the reasons why the long-term labor market success of children is related to that of their fathers.

scholarly journals Stature and long-term labor market outcomes: Evidence using Mendelian randomization

2017 ◽  
Vol 24 ◽  
pp. 18-29 ◽  
Author(s):  
Petri Böckerman ◽  
Jutta Viinikainen ◽  
Jari Vainiomäki ◽  
Mirka Hintsanen ◽  
Niina Pitkänen ◽  
...  
Keyword(s):  
Labor Market ◽  
Mendelian Randomization ◽  
Labor Market Outcomes ◽  
Market Outcomes ◽  
Term Labor

scholarly journals Long-term labor market returns to upper secondary school track choice: Leveraging idiosyncratic variation in peers’ choices

2020 ◽  
Author(s):  
Jesper Fels Birkelund ◽  
Herman Gerbert van de Werfhorst
Keyword(s):  
Labor Market ◽  
Safety Net ◽  
Vocational Education And Training ◽  
Market Returns ◽  
Variable Approach ◽  
Upper Secondary ◽  
Labor Market Returns ◽  
Term Labor

Vocational education and training (VET) is theorized to play a dual role for inequality of labor market outcomes: the role of a safety net and the role of socioeconomic diversion. In this paper, we test these hypotheses by examining the long-term labor market returns to track choice in upper secondary education in Denmark using an instrumental variable approach that relies on random variation in school peers’ educational decisions. We report two main findings. First, VET diverts students on the margin to the academic track away from higher-status but not higher-paying occupations. Second, VET protects students on the margin to leaving school from risks of non-employment and unskilled work, also leading to higher earnings. These results suggest that in countries with a highly compressed wage structure, a strong VET system benefits students unlikely to continue to college, while causing few adverse consequences for students on the margin to choosing academic education.

scholarly journals When a Door Closes, a Window Opens? Long-Term Labor Market Effects of Involuntary Separations

2017 ◽  
Vol 18 (1) ◽  
pp. 1-21 ◽  
Author(s):  
Simone Balestra ◽  
Uschi Backes-Gellner
Keyword(s):  
Labor Market ◽  
Fixed Effects ◽  
Market Effects ◽  
Reliable Source ◽  
Pseudo Maximum Likelihood ◽  
First Time ◽  
Poisson Estimator ◽  
Source Of Information ◽  
Term Labor

Abstract This study estimates the earning losses of workers experiencing an involuntary job separation. We employ, for the first time in the earning losses literature, a Poisson pseudo-maximum-likelihood estimator with fixed effects that has several advantages with respect to conventional fixed effects models. The Poisson estimator allows considering the full set of involuntary separations, including those with zero labor market earnings because of unemployment. By including individuals with zero earnings and by using our new method, the loss in the year of separation becomes larger than in previous studies. The loss starts with roughly 30% and, although it quickly shrinks, it remains at around 15% in the following years. In addition, we find that compared to other reasons for separation, the earning loss pattern is unique for involuntary separations, because no other type of separation implies such permanent scarring. This latter finding makes us confident that the self-reported involuntariness of a separation is a reliable source of information.

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