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1. Employment in Child Care and Early Education in the U.S. 2000-2021

Author:
Aritra Basu and Nancy Folbre
Publication Date:
02-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Accurate assessment of trends in the availability and affordability of childcare services in the U.S. hinges on accurate assessment of a paid labor force that is difficult to precisely measure, because it spans a wide range of informal and formal institutional arrangements. This paper calls attention to these measurement problems and traces significant changes in the composition of child care and early education employment from 2000 to 2021 based on data from the American Community Survey (ACS). It shows that employment in the Child Day Care Services industry has become an increasingly poor measure of the number of those employed in Child Care and Preschool/Kindergarten occupations, due to increased provision in both Private Household Services and Elementary and Secondary Education industries. Comparisons of worker characteristics and median annual earnings across occupations and industries highlight the effects of institutional context, including differences in the composition of demand for paid care services. Consideration of these issues points to the need for specific improvements in labor force survey design.
Topic:
Labor Issues, Employment, Survey, and Child Care
Political Geography:
North America and United States of America

2. Do alternative households improve paid employment outcomes? A comparative analysis of same-sex partnerships in Brazil

Author:
Cicero Braga and James Heintz
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper explores the labor market implications of household formation among same-sex married couples in Brazil, comparing them with different-sex married couples and unpartnered individuals. Using data from the Pesquisa Nacional por Amostra de Domicílios Contínua (PNADC) from 2016 to 2019, the study provides a descriptive overview of same-sex households and analyzes patterns of partnership formation, racial and educational endogamy/homogamy, and paid employment outcomes. Despite data limitations, findings suggest that same-sex couples may benefit from household formation by adopting alternatives to traditional patriarchal dynamics. Women in same-sex partnerships exhibit greater labor market participation and earnings, while men may experience reduced pressure to conform to traditional breadwinner roles. All married/partnered individuals earn a wage premium, relative to unpartnered individuals, but this premium varies by type of couple, sex, and the partner’s education and employment status. The paper highlights the importance of recognizing diverse household structures to fully understand economic well-being and inequities. Further research on the broader spectrum of "families of choice" is necessary to better capture the economic experiences of the LGBTI community in Brazil.
Topic:
Employment, LGBT+, Economic Inequality, Labor Market, Household, and Gender Roles
Political Geography:
Brazil and South America

3. Intersecting constraints: exploring labour market barriers for urban women in Sub-Sahara Africa

Author:
Alexander Stöcker
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This study examines the determinants of female labour force participation (FLFP) and female wage employment (FWE) of urban women in four SSA countries: Benin, Senegal, Uganda and Zambia. Using extensive micro-level data and a unified empirical framework, we investigate the multitude of constraints women face in both these dimensions. The methodology tries to bridge the drawbacks of typical macro-level cross-country studies and detailed country case studies, enabling direct comparisons over time and across countries. Key findings highlight substantial cross-country heterogeneity in barriers to female employment, including education, household wealth, motherhood, and male breadwinner norms. While higher education consistently enhances FLFP and FWE, motherhood negatively affects wage employment more persistently than labour force participation. Interaction effects between barriers, such as motherhood and male breadwinner norms, underscore their compounded impact. Additionally, local labour market conditions, namely the variety of occupations available, moderate these barriers, amplifying disadvantages for women in labour markets with higher levels of occupational variety. The study emphasises the importance of context-specific policy interventions. Recommendations include vocational training in Benin, advocacy for shifting restrictive norms in Senegal, targeted support for labour market transitions in Uganda, and addressing male breadwinner norms in Zambia. Future research should delve deeper into how labour market transitions influence female employment and how negative consequences can be remedied.
Topic:
Women, Employment, Labor Market, and Wages
Political Geography:
Uganda, Africa, Senegal, Zambia, Benin, and Sub-Saharan Africa

4. Reducing the Motherhood Penalty in Greece: Lessons from Norway

Author:
Manos Matsaganis, Tone Fløtten, Chrysa Papalexatou, Daphne Nicolitsas, and Bjorn Dapi
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This Working paper draws on the emerging literature that has established that the employment rates and the earnings of men and women start to diverge once they have children, with women’s labour market performance deteriorating, while that of men’s left unaffected or even improving. This phenomenon has been dubbed the motherhood penalty (or the child penalty). The size of the penalty is affected by the choices parents make as regards employment and childcare, which in turn are affected by gender norms, instilled in women and men early in life, but also by public policies aiming to establish a better work-life balance and help working mothers and fathers combine bringing up a child with pursuing a career. The paper reviews cultural norms and institutional arrangements as potential determinants of mothers’ employment in two polar cases: Greece (where female employment is low, and child penalties large) compared to Norway (where female employment is high, and child penalties are virtually non-existent). The paper concludes with a list of policy recommendations, inspired by our understanding of the gradual emergence of family-friendly work-life policies in Norway, and informed by our awareness of constraints facing policy makers in Greece.
Topic:
Employment, Economy, Public Policy, Parenting, and Motherhood
Political Geography:
Europe and Greece

5. Carbon taxation and firm behaviour in emerging economies: Evidence from South Africa

Author:
Johannes Gallé, Rodrigo Oliveira, Daniel Overbeck, Nadine Riedel, and Edson Severnini
Publication Date:
05-2025
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper provides the first comprehensive analysis of how firms in emerging economies respond to carbon taxation, leveraging detailed administrative data from South Africa—a potential trailblazer for other developing countries with limited state capacity amid the growing global push for carbon pricing. We examine the dynamic impacts of the carbon tax on firm-level outcomes—such as profits, sales, capital, and labour inputs—across manufacturing and mining firms, which are key sectors in the context of the carbon tax. Contrary to concerns that carbon taxes may hinder economic growth or reduce employment, our findings show no evidence of negative average impacts on firm performance or jobs. However, this overall result masks significant heterogeneity in the tax’s effects across sectors, driven by the sector-specific design elements of the South African carbon tax. Firms expecting higher effective tax rates may have intensified their use of emission-intensive machinery and depreciated capital in anticipation of the tax. This behaviour appears to stem from firms resolving regulatory uncertainty or seeking to recover costs from stranded assets.
Topic:
Employment, Economic Growth, Carbon Tax, and Emerging Economies
Political Geography:
Africa and South Africa

6. Gender diversity and economic growth

Author:
Jonathan Ostry
Publication Date:
02-2025
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Most macroeconomic and growth accounting models assume that male and female workers are perfectly substitutable in the aggregate production function. Whether this assumption is valid is an empirical question that this paper aims to answer by estimating the elasticity of substitution between female and male labour. We apply linear and non-linear techniques to firm-level data, cross-country sectoral data and cross-country aggregate data. We find that women and men are far from being perfect substitutes in production, a result that is consistent with much microeconomic evidence, but has not permeated to macroeconomics. The failure to account for imperfect gender substitutability has far-reaching implications. In particular, standard growth accounting exercises are likely to attribute to technological progress gains that are more properly attributable to the impact of greater gender inclusiveness in the labour force over time. Put differently, the gains from gender inclusiveness are likely to be much larger than standard economic models estimate.
Topic:
Governance, Women, Employment, Inequality, Economic Growth, and Macroeconomics
Political Geography:
Global Focus

7. Good Intentions, Better Outcomes: Shifting the Debate About Social Protection and Informality

Author:
James Heintz and Jayati Ghosh
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The introduction of social protections for individuals engaged in paid employment frequently comes up against arguments that such measures would have an adverse impact on employment, reduce access to formal jobs, and result in greater informality. The argument is that, while well intentioned, such policies distort labor markets and generate significant economic costs that either leave some workers worse off than they would have been in the absence of such protection, or the interventions become a drag on overall economic performance, encumbering the process of development. In what follows we critically evaluate such arguments and provide responses to the claim that social protections lead to higher informality. We also consider the challenges involved in providing social protection to different types of workers, including not only those employed by others but specifically the self-employed and unpaid workers.
Topic:
Economics, Employment, Labor Market, Informal Economy, and Protection
Political Geography:
Global Focus

8. Freedom of Association as a Key Aspect of Human Capital Management

Author:
Lenore Palladino
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Employee freedom of association— the right of workers to form and join organizations of their own choosing— is a fundamental human right that has been consistently disrespected by large U.S. employers (Economic Policy Institute 2019; International Labour Organization 2022). Freedom of association requires employers to refrain from discouraging employees’ right to organize but is routinely violated without meaningful penalty. In over forty percent of union election campaigns, employers face charges for violating employees’ right to organize—which does not include cases where no charges are filed (Economic Policy Institute 2019). The recent wave of well-known companies like Amazon and Starbucks blatantly engaging in practices to discourage their workers from forming unions has seen new challenges from the Biden National Labor Relations Board, but labor law in the United States does not adequately protect the right to freedom of association, and a change in political leadership could give companies carte blanche to override workers' rights (Clean Slate 2022). Companies can choose to establish corporate policies to respect employee freedom of association rights and can engage in behavior demonstrating their commitment to respecting this fundamental human right as part of their approach to Human Capital Management. This article focuses on two aspects of freedom of association as an aspect of Human Capital Management. The first is to examine what kinds of corporate policies exist to clarify corporate standards of conduct when employees are engaged in organizing activity. What kinds of policies focus on compliance with the minimal standards in U.S. labor law, and what policies comply with international norms as enshrined in ILO Conventions 87 and 98? The second prong of the article looks at negative ramifications for corporate value when companies do not respect workers' freedom of association and such behavior becomes public. What is the effect on customer attitudes, how is management behavior becoming increasingly visible, and what ramifications might this have for institutional investors?
Topic:
Political Economy, Employment, Human Capital, Labor Rights, Business Management, and Freedom of Association
Political Geography:
North America and United States of America

9. Watts happening to work? The labour market effects of South Africa’s electricity crisis

Author:
Haroon Bhorat and Timothy Köhler
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Frequent electricity outages threaten to impede the benefits of expanded access achieved by many developing countries in recent decades. A large literature documents these negative effects, however almost none consider labour market effects. This paper merges labour force survey microdata with high-frequency electricity supply and demand data to provide the first estimates of the relationships between outages and labour market outcomes in South Africa, a country characterized by frequent, severe outages referred to as load shedding. Exploiting temporal variation in outage incidence and intensity, we find that load shedding is associated with significantly lower employment rates, working hours, and earnings on average. Employment appears more sensitive relative to intensive margin outcomes, threatening job creation and preservation efforts. These negative relationships, however, are not evident for low levels of load shedding, but their strength markedly increases with load shedding intensity. We document further heterogeneity by firm size and industry, highlighting the vulnerability of jobs in manufacturing. Overall, our findings suggest that the South African labour market is largely insensitive to relatively low levels of load shedding; however, high levels appear especially costly.
Topic:
Employment, Economy, Electricity, and Labor Market
Political Geography:
Africa and South Africa

10. Labour market inequality in two Asian giants Indonesia and India compared

Author:
Kunal Sen
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We examine the nature of labour market inequality in Indonesia and India, using a common conceptual approach drawing from the job ladder framework. In the framework, we differentiate between self-employment and wage-informal and between formal, upper tier informal, and lower tier informal jobs. We find that both countries have a large proportion of workers in lower tier jobs, though the importance of wage-employment is larger in Indonesia. There are more workers in formal wage-employment in Indonesia than India. There are also sharp disparities in the earnings of workers in different tiers of the labour market in Indonesia and India, and there is limited evidence of convergence of the earnings of the lower tier informal workers to that of formal workers, at least for Indonesia. We also find that gender and educational level are important correlates of work status in both countries. Females and less educated workers occupy the lower tiers of the labour markets in the two countries.
Topic:
Employment, Inequality, Economy, Labor Market, and Informal Economy
Political Geography:
South Asia, Indonesia, India, and Asia