Labor Markets I

October, Thursday 27th | 16-18 hs

Contributed Session CS8

Room 69

 
Chair: Sara Lemos, University of Leicester
 
 

 

 Political Variables as Instruments for the Minimum Wage

 

  

 

Session: Labor Markets I

 

  

Presenter

 Sara Lemos, University of Leicester

 

  

Author(s)

Sara Lemos, University of Leicester

 

  

Sponsor

The American University of Paris Scholarship

 

  

 

 

Explanations for small minimum wage employment effects range from theoretical to empirical identification and data issues. An explanation not yet sufficiently explored is bias resulting from the simultaneous determination of the minimum wage and employment. We use a number of political variables as instruments to control for this source of endogeneity. Robust results indicate that an increase in the minimum wage has no adverse effects on employment in Brazil.

 

 

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 Following the High Road or Not: What Does It Imply for Firms as to WTR Implementation?

 

  

 

Session: Labor Markets I

 

  

Presenter

 Fabrice Gilles, EPEE, Université d’Evry

 

  

Author(s)

Fabrice Gilles, EPEE, Université d’Evry

 

  

 

 

This paper tries to evaluate in what extend the strategy of firms helps them or not in adopting a working time reduction within the special framework of the French 35 hours work week. Implementing local polynomial matching estimators, we show that Low Road firms, which employ workers with smaller wages, would have implemented later a WTR. High Road companies would have committed more often on job creations, but less often on a 10 percent WTR.

 

 

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 Loss Aversion in Wage Setting During Disinflation: Evidence from the US

 

  

 

Session: Labor Markets I

 

  

Presenter

 André Lunardelli, Universidade Federal de Goiás

 

  

Author(s)

André Lunardelli, Universidade Federal de Goiás

 

  

Sponsor

The Tinker Foundation Scholarship

 

  

 

 

Threshold models explaining wage readjustments under moderate inflation in the US show that (i) this state constitutes a regime distinct from periods of low inflation; (ii) disinflations constitute a regime distinct from non-disinflation; (iii) the concept of Ball and Moffitt (2002) of aspirated real wage readjustment is important in determining nominal wage readjustments during moderate inflation but, due to loss aversion, is insignificant during disinflation.

 

 

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 Worker Mobility in Bolivia: On-the-job search behavior

 

  

 

Session: Labor Markets I

 

  

Presenter

 Lykke Andersen, Grupo Integral, La Paz, Bolivia

 

  

Author(s)

Lykke Andersen, Grupo Integral, La Paz, Bolivia

Bent Jesper Christensen, University of Aarhus, Denmark

 

  

Sponsor

The American University of Paris Scholarship

 

  

 

 

The paper estimates structural parameters of two job separation models in order to understand constraints in the Bolivian labor market. The quit rate among skilled employees in the private sector is much higher than the one in the public sector, confirming that the private sector has difficulties maintaining its skilled labor. The results indicate that the public sector in Bolivia, inflated by high levels of foreign aid, may be detracting scarce human resources from local productive sectors.

 

 

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 The Impact of Unemployment Insurance on the Job Match Quality : A Quantile Regression Approach

 

  

 

Session: Labor Markets I

 

  

Presenter

 Alvaro A. Novo, Banco de Portugal and ISEGI-Universidade NOVA, Lisbon

 

  

Author(s)

Alvaro A. Novo, Banco de Portugal and ISEGI-Universidade NOVA, Lisbon

Mario Centeno, Banco de Portugal and ISEG-Universidade Tecnica de Lisboa

 

  

 

 

This paper investigates the positive impact of Unemployment Insurance (UI) generosity on the distribution of the match starting wage and tenure. We show evidence of a shift in the location (mean) and scale (variance) of both variables: more generous UI increases expected starting wage and tenure, and this impact is greater at the highest quantiles. These results can be seen as favorable evidence of match quality gains from UI generosity.

 

 

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 Estimating the Selection Bias of the Regression Discontinuity Design Using a Tie-Breaking Experiment

 

  

 

Session: Labor Markets I

 

  

Presenter

Jose Galdo, Syracuse University

 

  

Author(s)

Jose Galdo, Syracuse University

Jeffrey Smith, University of Maryland

Dan Black, Syracuse University

 

  

 

 

We use a tie-breaking experiment to investigate selection bias in the regression-discontinuity approach. The treatment (reemployment services) is assigned as a discontinuous function of the probability of exhausting unemployment benefits, which identifies experimental and non-experimental samples. We deal with a discontinuity frontier rather than a discontinuity point allowing the identification of marginal treatment effects over a wide range of the support of the discontinuous variable.

 

 

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