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Ge, Qi, Eun Jung Jordan, Myongjin Kim & Leilei Shen (2020): Returns to job satisfaction in the presence of horizontal mismatch. In: Applied Economics, Jg. 52, H. 27, S. 2913-2930. DOI:10.1080/00036846.2019.1696941

Abstract

"In this paper, we study the relationship among horizontal mismatch, job satisfaction and wages using data from the 2013 Scientists and Engineers Statistical Data System (SESTAT). Estimates from 2SLS indicate that 1) field-occupation match in the highest degree has a positive effect on job satisfaction and wages; and 2) controlling for field-occupation matches, job satisfaction has a positive but diminishing effect on wages with a large heterogeneity across different age groups. In addition, we also distinguish between job satisfaction arising from benefits and job satisfaction that is productivity enhancing and find both to have a positive but nonlinear effect on wages." (Author's abstract, IAB-Doku) ((en))

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Gertler, Mark, Christopher Huckfeldt & Antonella Trigari (2020): Unemployment Fluctuations, Match Quality, and the Wage Cyclicality of New Hires. In: The Review of Economic Studies, Jg. 87, H. 4, S. 1876-1914. DOI:10.1093/restud/rdaa004

Abstract

"We revisit the issue of the high cyclicality of wages of new hires. We show that after controlling for composition effects likely involving procyclical upgrading of job match quality, the wages of new hires are no more cyclical than those of existing workers. The key implication is that the sluggish behaviour of wages for existing workers is a better guide to the cyclicality of the marginal cost of labour than is the high measured cyclicality of new hires wages unadjusted for composition effects. Key to our identification is distinguishing between new hires from unemployment versus those who are job changers. We argue that to a reasonable approximation, the wages of the former provide a composition-free estimate of the wage flexibility, while the same is not true for the latter. We then develop a quantitative general equilibrium model with sticky wages via staggered contracting, on-the-job search, and heterogeneous match quality, and show that it can account for both the panel data evidence and aggregate evidence on labour market volatility." (Author's abstract, IAB-Doku) ((en))

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Granberg, Mark, Niklas Ottosson & Ali Ahmed (2020): Do ethnicity and sex of employers affect applicants’ job interest? An experimental exploration. In: Journal for labour market research, Jg. 54, S. 1-15. DOI:10.1186/s12651-020-00281-x

Abstract

"Starting a business is one way out of unemployment for many people. Having a small pool of job applicants may, however, affect the quality of manpower available to employers. This paper reports the results of an experimental study that examined whether job-seekers discriminate against prospective employers based on those employers’ ethnicity and sex. We conducted an experiment with 889 university students, where we presented 10 hypothetical job vacancies in the restaurant sector to the participants. We then asked participants to state their willingness to apply to each job. The ethnicity and sex of the employers were conveyed through employers’ names by using typical male and female Arabic- and Swedish-sounding names. Overall, our results provided no evidence of ethnic or sex discrimination by job-seekers against employers." (Author's abstract, IAB-Doku) ((en))

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Hetschko, Clemens, Julia Schmidtke, Michael Eid, Mario Lawes, Ronnie Schöb & Gesine Stephan (2020): The German job search panel. (OSF preprints), 2020-04-23. DOI:10.31219/osf.io/7jazr

Abstract

"This report introduces the German Job Search Panel, a longitudinal survey that follows people who register as job seeking over the course of up to two years. The focus of the survey is on job seekers’ well-being and health. An innovative survey app is used to allow for frequent measurement every month and for conducting the experience sampling method. The collected data may be linked to administrative records of the Federal Employment Agency, provided that people give their consent. A subsample of surveyed job seekers took part in hair sampling to measure their cortisol levels. In this report, we describe the sampling procedure, adjustments over the recruitment period and the collected data. We moreover examine selective participation in the panel. It turns out that high-skilled workers, young individuals and women were more likely to sign up. Age increases the probability to take part in the hair sampling. People working in East Germany were more likely to consent to the linkage of survey data and administrative records." (Author's abstract, IAB-Doku) ((en))

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Hoffman, Mitchell & Stephen V. Burks (2020): Worker overconfidence: Field evidence and implications for employee turnover and firm profits. In: Quantitative Economics, Jg. 11, H. 1, S. 315-348. DOI:10.3982/QE834

Abstract

"Combining weekly productivity data with weekly productivity beliefs for a large sample of truckers over 2 years, we show that workers tend to systematically and persistently overpredict their productivity. If workers are overconfident about their own productivity at the current firm relative to their outside option, they should be less likely to quit. Empirically, all else equal, having higher productivity beliefs is associated with an employee being less likely to quit. To study the implications of overconfidence for worker welfare and firm profits, we estimate a structural learning model with biased beliefs that accounts for many key features of the data. While worker overconfidence moderately decreases worker welfare, it also substantially increases firm profits." (Author's abstract, IAB-Doku) ((en))

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Kesternich, Iris, Heiner Schumacher, Stefan Schwarz & Bettina Siflinger (2020): Steigert sinnstiftende Arbeit die Bereitschaft zum Lohnverzicht? In: IAB-Forum H. 08.10.2020 Nürnberg, o. Sz., 2020-10-07.

Abstract

"Dass die meisten Menschen ihre Arbeit auch als sinnstiftend erleben möchten, ist wenig überraschend. Doch welchen Stellenwert hat dieser Wunsch im Vergleich zu anderen Kriterien wie Gehalt oder Arbeitsplatzsicherheit? Sind Menschen bereit, für mehr Sinnhaftigkeit auf einen Teil ihres Gehalts zu verzichten? Und unterscheiden sich Arbeitslose und Beschäftigte in dieser Hinsicht? Zu guter Letzt: Sind Menschen, die einer sinnstiftenden Arbeit nachgehen, produktiver?" (Autorenreferat, IAB-Doku)

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Lichter, Andreas & Amelie Schiprowski (2020): Benefit Duration, Job Search Behavior and Re-Employment. (CESifo working paper 8194), München, 32 S.

Abstract

"This paper studies how the potential duration of unemployment benefits affects individuals’ job search behavior and re-employment outcomes. We exploit an unexpected reform of the German unemployment insurance scheme in 2008, which increased the potential benefit duration from 12 to 15 months for recipients of age 50 to 54. Based on detailed survey data and difference-in-differences techniques, we estimate that one additional month of benefits reduces the number of filed applications by around 10% on average over the first two months of unemployment. Treatment effects on the reservation wage are positive but statistically insignificant. In a complementary analysis, we use social security data to investigate how the reform affected re-employment outcomes. The difference-in-differences estimates yield an elasticity of 0.24 (0.1) additional months in unemployment (nonemployment) per additional month of potential benefits. A cautious back-of-the-envelope calculation reveals substantial returns to early search effort." (Author's abstract, IAB-Doku) ((en))

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Liu, Dong & Mei-Po Kwan (2020): Measuring spatial mismatch and job access inequity based on transit-based job accessibility for poor job seekers. In: Travel behaviour and society, Jg. 19, S. 184-193. DOI:10.1016/j.tbs.2020.01.005

Abstract

"The few spatial mismatch studies that have examined spatial mismatch based on job accessibility consider travel time as the sole travel impedance. However, travel cost (e.g., fuel cost, parking fee and transit fare) is also an important factor in determining job accessibility especially for poor job seekers and needs to be integrated into job accessibility measure, because socially vulnerable people including poor job seekers could be disadvantaged by high travel cost (e.g., poor job seekers discouraged from using transit services for commuting due to high fare). By focusing on transit-based job accessibility, this study seeks to improve the assessment of spatial mismatch based on job accessibility by taking transit fare into account and determine the inequity in job accessibility for poor job seekers by conducting comparisons across areas and races. Based on a study of the Chicago Metropolitan Area, we first determine the demand for each census tract’s jobs based on a gravity model that integrates both transit-based travel time and transit fare of poor job seekers from other census tracts. Then, we measure the job accessibility for each census tract based on a gravity model considering the attraction of low-pay jobs weighted by job demand and the friction of transit-based travel time and transit fare. Finally, we assess spatial mismatch by comparing the job accessibility of central city poor job seekers against their suburban counterparts and determine the job access inequity for poor job seekers by comparing the results before and after including transit fare across different areas and races. The results show that central city poor job seekers, either before or after including transit fare, do not suffer from spatial mismatch and tend to have higher job accessibility compared to their suburban counterparts. However, the results obtained from including transit fare are quite different from those that considered travel time only, especially with respect to the differences between poor job seekers of different races living in different areas. For policymakers to be fully informed about spatial mismatch, it is important to take both travel time and transit fare into account." (Author's abstract, IAB-Doku) ((en))

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Berg, Gerard J. van den & Bas van der Klaauw (2019): Structural empirical evaluation of job search monitoring. In: International Economic Review, Jg. 60, H. 2, S. 879-903. DOI:10.1111/iere.12376

Abstract

"To evaluate search effort monitoring of unemployed workers, it is important to take account of post-unemployment wages and job-to-job mobility. We structurally estimate a model with search channels, using an RCT in which monitoring is randomized. The data include registers and survey data on search behavior. We find that the opportunity to move to better-paid jobs in employment reduces the extent to which monitoring induces substitution towards formal search channels in unemployment. Job mobility compensates for adverse long-run effects of monitoring on wages. We examine counterfactual policies against moral hazard, like reemployment bonuses and changes of the benefits path." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Fu, Jingcheng, Martin Sefton & Richard Upward (2019): Social comparisons in job search. In: Journal of Economic Behavior & Organization, Jg. 168, S. 338-361. DOI:10.1016/j.jebo.2019.10.013

Abstract

Using a laboratory experiment we examine how social comparisons affect behavior in a sequential search task. In a control treatment subjects search in isolation, while in two other treatments subjects get feedback on the search decisions and outcomes of a partner subject. The average level and rate of decline of reservation wages are similar across treatments. Nevertheless, subjects who are able to make social comparisons search differently from those who search in isolation. Within a search task we observe a reference wage effect: when a partner exits, the subject chooses a new reservation wage which is increasing in partner income. We also observe a social comparison effect between search tasks: subjects whose partners in a previous task searched for longer choose a higher reservation wage in the next task. Our findings imply that the provision of social information can change job-seekers search behavior. (Author's Abstract, IAB-Doku)

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Fu, Zhiming, Liang Wu & Ziguan Zhuang (2019): Labor supply, income distribution, and tax progressivity in a search model. In: The B.E. Journal of Macroeconomics, Jg. 19, H. 1, S. 1-18. DOI:10.1515/bejm-2017-0185

Abstract

"We develop a search model with risk-averse households to study the impact of tax progressivity on labor supply and income inequality across education groups. Labor supply responses are considered along both intensive and extensive margins. Our quantitative results are consistent with those of the existing empirical literature. First, we find that a decline in tax progressivity associated with the Tax Reform Act of 1986 has a significant impact on the aggregate labor supply with approximately 61 percent occurred along the extensive margin. Second, households differ in their labor and income responses to tax reform. A decline in tax progressivity changes the income composition of each household by affecting labor supplies and asset holdings. This leads to an increase in income inequality. Therefore, the tax share paid by the most educated group rises due to an increase in capital income after tax reforms are instituted." (Author's abstract, © De Gruyter) ((en))

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Gartner, Hermann, Thomas Rothe & Enzo Weber (2019): The Quality-Weighted Matching Function: Did the German Labour Market Reforms Trade off Efficiency against Job Quality? (IAB-Discussion Paper 24/2019), Nürnberg, 14 S.

Abstract

"Wir analysieren den Zielkonflikt zwischen Umfang und Qualität der Beschäftigung, indem wir eine erweiterte Matching-Funktion schätzen, worin die Zahl der neue Beschäftigungsverhältnisse (Matches) mit deren Qualität gewichtet wird. Diesen Ansatz verwenden wir, um die Auswirkungen der Hartz-Reformen der Jahre 2003 bis 2005 auf den Arbeitsmarkt zu bewerten. In der Tat bestätigt sich, dass ein Teil der zusätzlichen Beschäftigungsverhältnisse durch schlechtere Qualität erkauft war. Auch bei konstanter Qualität der neuen Matches wäre aber gut die Hälfte des positiven Effektes auf die Matchingeffizienz infolge der Hartz-Reformen verblieben." (Autorenreferat, IAB-Doku)

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Hauptmann, Andreas (2019): Endogenous wage regime selection. A general equilibrium model. In: Economics Bulletin, Jg. 39, H. 4, S. 2650-2663., 2019-11-15.

Abstract

"Diese Arbeit analysiert die Rolle von Transaktionskosten im Kontext unvollständiger Tarifabdeckung und endogener Wahl des Lohnregimes. Es wird oft angenommen, dass Unternehmen gegen Gewerkschaften sind, weil sie die Gewinne verringern. In vielen Ländern liegt die Anerkennung der Gewerkschaften jedoch im Ermessen des Arbeitgebers, und gleichzeitig ist der Tarifvertrag eine der wichtigsten Formen der Lohnfindung. Im Gegensatz zur bisherigen Literatur gehe ich davon aus, dass das Verhandeln selbst nicht mehr kostenlos ist, sondern zusätzliche Ressourcen erfordert. Basierend auf einem einfachen theoretischen Modell zeigen die Ergebnisse, dass unterschiedliche Lohnsysteme, gewerkschaftlich und nicht gewerkschaftlich, im allgemeinen Gleichgewicht koexistieren, wenn die Kostenstrukturen zwischen den Lohnsystemen ausreichend unterschiedlich sind." (Autorenreferat, IAB-Doku)

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Herz, Benedikt (2019): Specific human capital and wait unemployment. In: Journal of labor economics, Jg. 37, H. 2, S. 467-508. DOI:10.1086/700190

Abstract

"A displaced worker might rationally prefer to wait through a long spell of unemployment instead of seeking employment at a lower wage in a job he is not trained for. I evaluate this trade-off using micro-data on displaced workers. To achieve identification, I exploit that the more a worker invested in occupation-specific human capital, the more costly it is for him to switch occupations and the higher is therefore his incentive to wait. I find that between 9% and 17% of total unemployment in the United States can be attributed to wait unemployment." (Author's abstract, IAB-Doku) ((en))

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Krug, Gerhard, Katrin Drasch & Monika Jungbauer-Gans (2019): The social stigma of unemployment. Consequences of stigma consciousness on job search attitudes, behaviour and success. In: Journal for labour market research, Jg. 53, S. 1-27., 2019-07-03. DOI:10.1186/s12651-019-0261-4

Abstract

"Studies show that the unemployed face serious disadvantages in the labour market and that the social stigma of unemployment is one explanation. In this paper, we focus on the unemployed's expectations of being stigmatized (stigma consciousness) and the consequences of such negative expectations on job search attitudes and behaviour. Using data from the panel study 'Labour Market and Social Security' (PASS), we find that the unemployed with high stigma consciousness suffer from reduced well-being and health. Regarding job search, the stigmatized unemployed are more likely to expect that their chances of re-employment are low, but in contrast, they are more likely to place a high value on becoming re-employed. Instead of becoming discouraged and passive, we find that stigmatized unemployed individuals increase their job search effort compared to other unemployed individuals. However, despite their higher job search effort, the stigma-conscious unemployed do not have better re-employment chances." (Author's abstract, © Springer-Verlag) ((en))

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L'Horty, Yannick & Florent Sari (2019): The role of spatial and skill mismatches. Explaining long-term unemployment in Paris. In: Regional Studies. Journal of the Regional Studies Association, Jg. 53, H. 2, S. 283-296. DOI:10.1080/00343404.2018.1462480

Abstract

"In the Paris region, one can observe simultaneously the coexistence of a large and dynamic job pool with long-lasting periods of unemployment. This paradox reveals the importance of skill and spatial mismatch mechanisms, which are often used to explain disparities in local labour market outcomes. This paper uses several spatial models to measure the effects of these two mechanisms on unemployment durations in the Paris region. The results show that both problems affect municipalities close to the centre of Paris, while unemployment situations in municipalities on the fringes of the region are mainly affected by a lack of local employment dynamism." (Author's abstract, IAB-Doku) ((en))

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Limnios, Christopher (2019): Housing market and labor market search. In: The B.E. Journal of Macroeconomics, Jg. 19, H. 1, S. 1-23. DOI:10.1515/bejm-2018-0049

Abstract

"Current models fail to concurrently account for several important empirical regularities in the housing and labor markets. I augment the Diamond-Mortensen-Pissarides (DMP) search and matching model of the labor market with a housing market characterized by search and matching frictions, integrating both markets in a coherent macroeconomic model. The model provides a framework to explain how shocks and frictions which originate in the labor market spill over into the housing market and vise versa. The model accounts for procyclical, serially correlated real estate values, rental rates and expected real estate appreciation. Further, it accounts for increases in wages, housing costs and willingness to commute as a result of increases in geographic amenities. The model is also consistent with the empirical relationship between vacancy rates in the housing market and separation rates in the labor market. Simulations demonstrate that certain land-use policies can mitigate permanent shocks to labor productivity and the level of geographic amenities." (Author's abstract, © De Gruyter) ((en))

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Morkuté, Gintaré (2019): Location-specific knowledge in spatial job search and its outcomes. An empirical investigation. In: Papers in regional science, Jg. 98, H. 3, S. 1373-1395. DOI:10.1111/pirs.12418

Abstract

"This paper investigates how working location influences jobseekers' subsequent spatial job search. Further, it is assessed to what extent mobility between working regions is associated with wage growth. The results show that the working region functions as a prominent geographical anchor around which the new job search is focused. The jobseekers that do find a job far away from their old working region receive a small wage premium, but this premium disappears if selectivity is taken into account. It is concluded that employees demonstrate substantial stickiness to their working locations, and that this is motivated by asymmetry in search costs. No evidence was found that mobility between working regions in itself affects wages." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Rose, Damaris & Haya Stier (2019): The skill divide in post-unemployment job quality. In: Social science research, Jg. 82, H. August, S. 105-112. DOI:10.1016/j.ssresearch.2019.04.003

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Somers, Melline A., Sofie J. Cabus, Wim Groot & Henriëtte Maassen van den Brink (2019): Horizontal mismatch between employment and field of education. Evidence from a systematic literature review. In: Journal of Economic Surveys, Jg. 33, H. 2, S. 597-603. DOI:10.1111/joes.12271

Abstract

"This paper provides a systematic review of the growing literature on the poor match between employees' field degree and the job requirements, also referred to as horizontal mismatch. We identify the different definitions used in the literature and find that each measure of horizontal mismatch yields substantially different incidence rates. We discuss the validity of the different measures and conclude that a more uniform definition of horizontal mismatch is needed. The likelihood of horizontal mismatch is among other things determined by the extent to which employees possess general skills as opposed to occupation-specific skills, and, it appears to be more frequently present among older workers. Compared to well-matched employees, horizontally mismatched workers generally incur a wage penalty, are less satisfied with their jobs, and are more likely to regret their study programme. The ensuing findings offer guidance to prevent horizontal mismatch as well as a roadmap for future research." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))