scholarly journals Family job search and wealth: The added worker effect revisited

2020 ◽  
Vol 11 (4) ◽  
pp. 1431-1459 ◽  
Author(s):  
J. Ignacio García-Pérez ◽  
Sílvio Rendon

We propose and estimate a model of family job search and wealth accumulation with data from the Survey of Income and Program Participation (SIPP). This dataset reveals a very asymmetric labor market for household members who share that their job finding is stimulated by their partners' job separation. We uncover a job search‐theoretic basis for this added worker effect, which occurs mainly during economic downturns, but also by increased nonemployment transfers. Thus, our analysis shows that the policy goal of increasing nonemployment transfers to support a worker's job search is partially offset by the spouse's cross effect of decreased nonemployment and wages. The added worker effect is robust to having more children and more education in the household and does not just result as a composition of heterogeneous individuals. We also show that the interdependency between household members is understated if wealth and savings are not considered. Finally, we show that gender equality in the labor market not only improves women's labor market performance, but it also increases men's accepted wages and nonemployment rates.

2021 ◽  
Author(s):  
◽  
Tapas Paul

This dissertation addresses labor market issues. The first two chapters deal with employment issues during the great recession using nationally representative data from the Survey of Income and Program Participation. The first chapter looks at the added worker effect in the great recession, the wife's labor market response to a husband loss of job. The second chapter investigates the impact of a wife's labor market participation on family poverty. The third chapter examines employment opportunities in the economics discipline using journal publication records from IDEAS/RePEc. It looks at the effect of new journal entry on the distribution of publicati


2019 ◽  
Vol 20 (4) ◽  
pp. e436-e468
Author(s):  
Bernhard Boockmann ◽  
Tobias Brändle

Abstract Intensified counseling, job search assistance and related policies have been found to be effective for labor market integration of the unemployed by a large number of studies, but the evidence for older and hard-to-place unemployed is more mixed. In this paper, we present key results for a large-scale active labor market program directed at the older unemployed in Germany. To identify the treatment effects, we exploit regional variation in program participation. We use a combination of different evaluation estimators to check the sensitivity of the results to selection, substitution and local labor market effects. We find positive effects of the program in the range of 5-10 percentage points on integration into unsubsidized employment. However, there are also substantial lock-in effects, such that program participants have a higher probability of remaining on public welfare benefit receipt for up to 1 year after commencing the program.


2017 ◽  
Vol 107 (12) ◽  
pp. 3875-3916 ◽  
Author(s):  
Shigeru Fujita ◽  
Giuseppe Moscarini

We document in the Survey of Income and Program Participation covering the period 1990–2013 that a surprisingly large share of workers return to their previous employer after a jobless spell, and experience very different unemployment and employment outcomes than job switchers. The probability of recall is much less procyclical and volatile than the probability of finding a new employer. We add to a quantitative, and otherwise canonical, search-and-matching model of the labor market a recall option, which can be activated freely following aggregate and job-specific productivity shocks. Recall and search effort significantly amplify the cyclical volatility of new job-finding and separation probabilities. (JEL E24, E32, J63, J64)


Author(s):  
Murat Tasci ◽  
Saeed Zaman

The past recession has hit the labor market especially hard, and economists are wondering whether some fundamentals of the market have changed because of that blow. Many are suggesting that the natural rate of long-term unemployment— the level of unemployment an economy can’t go below—-has shifted permanently higher. We use a new measure that is based on the rates at which workers are finding and losing jobs and which provides a more accurate assessment of the natural rate. We find that the natural rate of unemployment has indeed shifted higher—but much less so than has been suggested. Surprising trends in both the job-finding and job-separation rates explain much about the current state of the unemployment rate.


2021 ◽  
Vol 10 (5) ◽  
pp. 148
Author(s):  
Rosario Undurraga ◽  
Jóna Gunnarsson

How are the work trajectories of Chilean women? This qualitative study analyzes the female work trajectories through interviews and biograms in a sample of 50 Chilean women, professionals and non-professionals, between the ages of 24 and 88. The article proposes an original typology of female work trajectories and relates type of work trajectory with Piore’s theory of labor market segmentation. The paper discusses the challenges and weaknesses of the Chilean women’s labor outcome and presents recent data to extrapolate the impact of the COVID-19 pandemic on vulnerable work trajectories. It considers the type of State and possible actions to achieve greater welfare and social development regarding gender equality.


2019 ◽  
Vol 84 (6) ◽  
pp. 983-1012 ◽  
Author(s):  
David S. Pedulla ◽  
Devah Pager

Racial disparities persist throughout the employment process, with African Americans experiencing significant barriers compared to whites. This article advances the understanding of racial labor market stratification by bringing new theoretical insights and original data to bear on the ways social networks shape racial disparities in employment opportunities. We develop and articulate two pathways through which networks may perpetuate racial inequality in the labor market: network access and network returns. In the first case, African American job seekers may receive fewer job leads through their social networks than white job seekers, limiting their access to employment opportunities. In the second case, black and white job seekers may utilize their social networks at similar rates, but their networks may differ in effectiveness. Our data, with detailed information about both job applications and job offers, provide the unique ability to adjudicate between these processes. We find evidence that black and white job seekers utilize their networks at similar rates, but network-based methods are less likely to lead to job offers for African Americans. We then theoretically develop and empirically test two mechanisms that may explain these differential returns: network placement and network mobilization. We conclude by discussing the implications of these findings for scholarship on racial stratification and social networks in the job search process.


2018 ◽  
Vol 39 (4) ◽  
pp. 600-620 ◽  
Author(s):  
Vojtech Bartoš ◽  
Barbara Pertold-Gebicka

Purpose The purpose of this paper is to identify the role of employers in creating employment gaps among women returning to the labor market after parental leaves of different durations. Design/methodology/approach The authors use a controlled correspondence field experiment that orthogonally manipulates parental leave length and the quality of fictitious female job candidates. The experiment is complemented with a survey among human resource managers. Findings High-quality candidates receive more interview invitations when applying after a short parental leave, while low-quality (LQ) candidates receive more interview invitations when applying after a typical three years long parental leave. Survey results suggest that the difference in invitations between short and typical leave treatments is driven by a social norm that mothers should stay home with children younger than three. Productivity gains from employing a LQ job applicant with a shorter career break might not be high enough to outweigh the adverse social norm effect. Social implications The presented results point toward the strong effect of prevailing social norms on job search prospects of women returning to the labor market after parental leave. Originality/value A correspondence experiment has not been used before to study the relationship between time spent on leave and the labor market prospects of mothers. It also extends research on social norms to the domain of hiring decisions.


2016 ◽  
Vol 106 (5) ◽  
pp. 208-213 ◽  
Author(s):  
Giuseppe Moscarini ◽  
Fabien Postel-Vinay

The canonical model of job search and wage posting (Burdett and Mortensen, 1998) establishes a natural connection between the average wage growth in the economy and the pace of Employer-to-Employer (EE) transitions, predicting wage growth to be positively related to the pace of EE reallocation for all workers, but especially for stayers. We verify this empirically both with aggregate time series and with longitudinal micro data from the Survey of Income and Program Participation (SIPP). We argue that monetary authorities concerned with inflationary wage pressure should pay more attention directly to EE reallocation and less to the unemployment rate.


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