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12. Monopsony, Efficiency, and the Regularization of Undocumented Immigrants
- Author:
- George J. Borjas and Anthony Edo
- Publication Date:
- 07-2023
- Content Type:
- Working Paper
- Institution:
- Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
- Abstract:
- In May 1981, President François Mitterrand regularized the status of undocumented immigrant workers in France. The newly legalized immigrants represented 12 percent of the non-French workforce and about 1 percent of all workers. Employers have monopsony power over undocumented workers because the undocumented may find it costly to participate in the open labor market and have restricted economic opportunities. By alleviating this labor market imperfection, a regularization program can move the market closer to the efficient competitive equilibrium and potentially increase employment and wages for both the newly legalized and the authorized workforce. Our empirical analysis reveals that the Mitterrand regularization program particularly increased employment and wages for low-skill native and immigrant men, and raised French GDP by over 1 percent.
- Topic:
- Immigrants, Labor Market, Undocumented Population, Monopsony, and Regularization
- Political Geography:
- Europe, France, and Global Focus
13. The online gig economy’s impact is not as big as many thought
- Author:
- Lee G. Branstetter
- Publication Date:
- 07-2022
- Content Type:
- Policy Brief
- Institution:
- Peterson Institute for International Economics (PIIE)
- Abstract:
- The explosive global growth of online ride-hailing platforms raised concern (and, in some quarters, optimism) that similar growth in other platforms could rapidly disrupt traditional labor arrangements on a large scale in advanced economies. But the evidence to date suggests no significant changes in the overall importance of “gig” work in the US labor market nor a significant decline in the importance of traditional employment relationships. Online platforms may play a growing role (relative to traditional “brick-and-mortar” intermediaries) in connecting gig workers to their customers, but that alone does not guarantee a large increase in the importance of gig work. Branstetter reviews this evidence, noting the gaps in labor market data series that make the measurement of this phenomenon so difficult. Even if traditional employment relationships are not likely to decline significantly in the near future, the rise of online gig work nevertheless highlights longstanding inadequacies of labor market regulations, which recognize employees and truly independent contractors but struggle with the intermediate kinds of worker-firm relationships the online platforms enable. Branstetter summarizes proposals for regulating gig economy work and the lessons policymakers in South Korea and other economies can learn from the literature he reviews in this Policy Brief.
- Topic:
- Economics, Employment, Labor Market, and Gig Economy
- Political Geography:
- Global Focus
14. Employer power and employment in developing countries
- Author:
- Nancy H. Chau, Ravi Kanbur, and Vidhya Soundararajan
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- The issue of employer power is underemphasized in the development literature. The default model is usually one of competitive labour markets. This assumption matters for analysis and policy prescription. There is growing evidence that the competitive labour markets assumption is not valid for employment in developing countries. Our objective in this paper is to review this evidence, to present theoretical and policy perspectives that follow from it, and to highlight areas for further research.
- Topic:
- Development, Employment, and Labor Market
- Political Geography:
- Global Focus
15. Is the workforce ready for the jobs of the future? Data-informed skills and training foresight
- Author:
- Fabian Stephany and Rosemary Luckin
- Publication Date:
- 05-2022
- Content Type:
- Working Paper
- Institution:
- Bruegel
- Abstract:
- For many newly emerging jobs, labour-market mismatches prevail as workers and firms are unable to apply precise occupation taxonomies and training lags behind workforce needs. We report on how data can enable useful foresight about skill requirements and training needs, even when that data has not been collected for this express purpose. First, we show how online generated freelance data can help monitor labour-market developments in the short run. Second, in the long run, we illustrate how data can shed light on development of workplace-ready aptitudes among students, even when these are not the direct focus of instruction. This combination of data-intensive activities can inform the immediate and long-term needs for education and training in order to help individuals develop the ability to learn, train and retrain as often and as much as needed.
- Topic:
- Business, Training, Data, Labor Market, Workforce, and Skills
- Political Geography:
- Europe and Global Focus
16. Does ethnic heterogeneity decrease workers’ effort in the presence of income redistribution? An experimental analysis
- Author:
- Christoph Schütt, David Pipke, Lena Detlefsen, and Gianluca Grimalda
- Publication Date:
- 07-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- Ethnic discrimination is ubiquitous, and it has been shown to exert adverse effects on income redistribution. The reason is that a country’s ethnic majority, if richer than the average, may be unwilling to transfer resources to the country’s ethnic minorities if poorer than the average. A yet untested mechanism is that a country’s ethnic majority may reduce their work effort knowing that their income will finance redistribution to ethnic minorities. We test for this mechanism experimentally in triadic interactions. A German citizen acting as a worker is randomly matched with a recipient who can be another German, an economic migrant, or an asylum seeker in Germany. Workers know that another German citizen may transfer part of their earnings to the recipient. The recipient does not exert any work effort. Even if the recipient’s identity does not affect effort in the aggregate, social identity strongly moderates this relationship. Participants with a strong German identity, i.e., who report feeling close to other Germans, exert significantly less effort than other participants if the recipient is an asylum seeker. They also exert more effort when matched with a German recipient than an asylum seeker, while participants with a less strong German identity do the opposite. Moreover, participants with a strong German identity exert slightly more effort when matched with economic migrants than with asylum seekers, while others tend to do the opposite, albeit statistically insignificantly. Workers’ beliefs over the third party’s redistribution rate do not mediate such results and are generally inaccurate.
- Topic:
- Economics, Discrimination, Tax Systems, Labor Market, Redistribution, and Welfare State
- Political Geography:
- Global Focus
17. Picture This: Social Distance and the Mistreatment of Migrant Workers
- Author:
- Toman Barsbai, Vojtech Bartos, Victoria Licuanan, Andreas Steinmayr, Erwin Tiongson, and Dean Yang
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- We experimentally study an intervention to reduce mistreatment of Filipino over?seas domestic workers (DWs) by their employers. Encouraging DWs to show their employers a family photo while providing a small gift when starting employment reduced DW mistreatment, increased their job satisfaction, and increased the likeli?hood of contract extension. While generally unaware of the intervention, DWs’ fam?ilies staying behind become more positive about international labor migration. An online experiment with potential employers suggests that the effect operates through a reduction in employers’ perceived social distance from their employees.
- Topic:
- Migration, Labor Issues, Labor Market, Migrant Workers, and Contracts
- Political Geography:
- Philippines and Global Focus
18. Breaking Through the Digital Ceiling: ICT Skills and Labour Market Opportunities
- Author:
- David Pichler and Robert Stehrer
- Publication Date:
- 02-2021
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- This paper analyses the impact of ICT-skills on individuals’ labour market mobility patterns, in particular job-to-job, employment- to-unemployment and unemployment-to-employment transitions. Based on the OECD’s Programme for the International Assessment of Adult Competencies (PIAAC) and longitudinal EU-SILC data, individuals’ labour market outcomes are examined over the period 2011-2017 in nine EU countries and the UK. Our results indicate that individuals with strong ICT skills have better opportunities and are therefore not only more likely to change jobs more frequently but are also less likely to face unemployment. Furthermore, ICT skills support unemployment exit towards medium and high digital occupations. A certain minimum level of ICT skills also supports unemployment exit towards low digital occupations but seems to make employment in such occupations less likely once this threshold is crossed. Overall, ICT skills have less predictive power for transition towards medium digital occupations. Thus, while ICT skills appear to improve labour market opportunities significantly, it seems that there are still jobs that require relatively few ICT skills.
- Topic:
- Economics, International Political Economy, Science and Technology, Digital Economy, Labor Market, Information Technology, and Skilled Labor
- Political Geography:
- Global Focus
19. On the Non-Inflationary effects of Long-Term Unemployment Reductions
- Author:
- Walter Paternesi Meloni, Davide Romaniello, and Antonella Stirati
- Publication Date:
- 04-2021
- Content Type:
- Working Paper
- Institution:
- Institute for New Economic Thinking (INET)
- Abstract:
- The paper critically examines the New Keynesian explanation of hysteresis based on the role of long-term unemployment. We first examine its analytical foundations, according to which rehiring long-term unemployed individuals would not be possible without accelerating inflation. Then we empirically assess its validity along two lines of inquiry. First, we investigate the reversibility of long-term unemployment. Then we focus on episodes of sustained long-term unemployment reductions to check for inflationary effects. Specifically, in a panel of 25 OECD countries (from 1983 to 2016), we verify by means of local projections whether they are associated with inflationary pressures in a subsequent five-year window. Two main results emerge: i) the evolution of the long-term unemployment rate is almost completely synchronous with the dynamics of the total unemployment rate, both during downswings and upswings; ii) we do not find indications of accelerating or persistently higher inflation during and after episodes of strong declines in the longterm unemployment rate, even when they occur in country-years in which the actual unemployment rate was estimated to be below a conventionally estimated Non-Accelerating Inflation Rate of Unemployment (NAIRU). Our results call into question the role of long-term unemployment in causing hysteresis and provide support to policy implications that are at variance with the conventional wisdom that regards the NAIRU as an inflationary barrier.
- Topic:
- Inflation, Macroeconomics, Unemployment, and Labor Market
- Political Geography:
- Global Focus
20. Ethical Recruitment of Health Workers: Using Bilateral Cooperation to Fulfill the World Health Organization’s Global Code of Practice
- Author:
- Michael Clemens and Helen Dempster
- Publication Date:
- 05-2021
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- In a bid to better manage the increasing migration of health workers, in 2010 the World Health Organization (WHO) adopted its Global Code of Practice on the International Recruitment of Health Personnel. The Code has been misinterpreted by many as banning all recruitment from the 57 countries it deemed to have a “critical shortage” of health workers. But that is neither what the WHO intended, nor what the Code says. Recruitment from these countries was always allowed, even encouraged, as long as it was conducted under a mutually beneficial government-to-government agreement. In this policy paper, we outline how the WHO defined a “critical shortage” of health workers, both for the original Code and for its newly published Health Workforce Support and Safeguards List. The paper then goes onto explore how countries of migrant destination and origin can (and should) design ethical and sustainable health worker migration partnerships that fulfil the requirements of the Code.
- Topic:
- International Cooperation, Health Care Policy, Ethics, and Labor Market
- Political Geography:
- Global Focus
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