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Bonn : IZA, 2017
Abstract: Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries such as Italy, Latvia, Norway, Poland, and Sweden. The NDC approach features the lifelong contribution-benefit link of a financial defined contribution (FDC) personal account scheme, but is based on the pay-as-you-go format. At its start-up, the pay-as-you go commitments of the preceding defined benefit (DB) system are converted into individua ...; [Read more...]
Bonn : IZA, 2018
Abstract: As concerns over growing levels of student loan debt continue to mount for both students and taxpayers, many have called for an improved accountability system in the U.S. higher education system. In this policy brief, I discuss the many flaws in our current system, and outline how a system known as “risk-sharing” could drastically improve incentives and outcomes. I present a framework for how risk-sharing could be structured, and illustrate the distributional impacts (both positive and ...; [Read more...]
Bonn : IZA, 2012
Abstract: Higher education is in the position to save Europe by rendering a substantial contribution to sustainable economic growth. For that purpose higher education must strengthen its innovative power in entrepreneurship education and by focusing research more on societal problems, while being better empowered and enabled by Governments. Universities must show leadership in resolving or channeling the major societal questions. More European competition between universities in education and re ...; [Read more...]
Bonn : IZA, 2019
Abstract: The paper examines recent policy reforms in Italy focusing on the impact of the 2012 Fornero reforms of employment protection legislation as well as the initial impact of the EU-wide Youth Guarantee scheme introduced in Italy in March 2014. The paper then examines how these two policy reforms interacted. The analysis first confirms the finding that the Fornero reform increased permanent hires particularly amongst the very youngest workers; it then goes on to find that the YG was indeed ...; [Read more...]
Bonn : IZA, 2019
Abstract: TA common feature of public sector labor markets is the use of pay scales. This paper examines how the removal of pay scales impacts productivity, by exploiting a reform that compelled all schools in England to replace pay scales with school-designed performance related pay schemes. We find that schools in labor markets with better outside options for teachers saw relatively higher increases in teacher pay. Schools in these areas relatively increase their spending on teachers, have hig ...; [Read more...]
Bonn : IZA, 2013
Abstract: In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: while the rule-based component of short-time work is a cost-efficient job saver, the discretionary component appears to be completely ineffective. In a case study for Germany, we use the rich data available to combine micro- ...; [Read more...]
Bonn : IZA, 2020
Abstract: The added worker effect (AWE) measures the entry of individuals into the labor force due to their partners' job loss. We propose a new method to calculate the AWE, which allows us to estimate its effect on any labor market outcome. We show that the AWE reduces the fraction of households with two non-employed members. The AWE also accounts for why women's employment is less cyclical and more symmetric compared to men. In recessions, while some women lose their employment, others enter t ...; [Read more...]
Bonn : IZA, 2020
Abstract: The paper presents findings from a novel survey of Italian, British, and American families in lockdown during the COVID-19 pandemic of spring 2020. A high percentage report disruptions in the patterns of family life, manifesting in new work patterns, chore allocations and household tensions. Though men have taken a greater share of childcare and grocery shopping duties, reallocations are not nearly as stark as disruptions to work patterns might suggest, and families having to reallocat ...; [Read more...]
Bonn : IZA, 2013
Abstract: Women are on average more absent from work for health reasons than men. At the same time, they live longer. This conflicting pattern suggests that part of the gender difference in health-related absenteeism arises from differences between the genders unrelated to actual health. An overlooked explanation could be that men and women's preferences for absenteeism differ, for example because of gender differences in risk preferences. These differences may originate from the utility-maximiz ...; [Read more...]
Bonn : IZA, 2017
Abstract: Programs that increase the economic capacity of poor women can have cascading effects on children's participation in school and work that are theoretically undetermined. The research presents a simple model to describe the possible channels through which these programs may affect children's activities. Based on a cluster-randomized trial, we examine how a program providing capital and training to women in poor rural communities in Nicaragua affected children. Children in beneficiary ho ...; [Read more...]
Bonn : IZA, 2017
Abstract: Maternity and family leave policies enable mothers to take time off work to prepare for and recover from childbirth and to care for their new children. While there is substantial variation in the details of these policies around the world, the existing research yields the following general conclusions. First, despite important barriers to the take-up of leave, both the implementation of new programs and extensions of existing ones increase leavetaking rates among new parents. Second, l ...; [Read more...]
Bonn : IZA, 2017
Abstract: The research draw lessons from existing work and analysis on the effects of parental leave and other interventions aimed at aiding families. The outcomes of interest are female employment, gender gaps in earnings and fertility. The authors begin with a discussion of the historical introduction of family policies ever since the end of the nineteenth century and then turn to the details regarding family policies currently in effect across high-income nations. Then they sketch a framework ...; [Read more...]
Bonn : IZA, 2011
Abstract: The Bologna process inspired the Italian 3+2 reform of the university system which constitutes a big increase in the supply of college graduates. This paper is a preliminary attempt to identify the effects of the reform on the probability (relative to non-graduates) of employment of college graduates in the age range 25-34; their quality of employment measured with the relative probability of being employed with a temporary contract; the college wage premium. Using administrative data ...; [Read more...]
Bonn : IZA, 2020
Abstract: This study examines the initial impact of COVID-19 shutdowns on the employment and hours of unincorporated self-employed workers using data from the Current Population Survey. Although the shutdowns decreased employment and hours for all groups, differential effects by gender, couple status, and parental status exist. Coupled women were less likely to be working than coupled men, while single women were more likely to be working than single men. However, fathers of school-age children ...; [Read more...]
Bonn : IZA, 2020
Abstract: Italy has probably been one of the first ships to cross the storm of the pandemic, soon after Wuhan in China, and one of the worst performers with a GDP fall of -10% in 2020. The reason is that the pandemic recession has drawn on old structural problems, which already before the pandemic made the country one of the worst performers in terms of growth rates in Europe in the last 20 years. The evils of Italy are well known. It is the second biggest manufacturer in Europe, but also among ...; [Read more...]
Bonn : IZA, 2020
Abstract: This paper analyzes the role of networks in the spatial diffusion of local economic shocks in Africa. We show that road and ethnic connectivity are particularly important factors for diffusing economic spillovers over longer distances. We then determine the key players, i.e., which districts are key in propagating local economic shocks across Africa. Using these results, we conduct counterfactual policy exercises to evaluate the potential gains from policies that increase economic acti ...; [Read more...]
Bonn : IZA, 2020
Abstract: Home office at full pay is not an option for all employees hit by the coronavirus crisis. To analyze changes in work arrangements during the pandemic, a team of economists from the University of Bonn, IZA and the University of Tilburg surveyed around 5,500 individuals in the Netherlands from March 20-31. The results show that high-skilled workers spend more time in the home office, while less-skilled workers are more likely to work reduced hours or lose their jobs. Education plays a ke ...; [Read more...]
Bonn : IZA, 2021
Abstract: As the pandemic continues and countries experience a massive second wave, labor markets continue to be heavily affected. At the same time, countries have started to extend, but also adjust stabilization measures initially introduced at the outset of the crisis. As of today, three main elements of crisis response require particular attention: the further development of short-time work schemes, ad hoc income protection for the self-employed, and the specific difficulties labor markets ar ...; [Read more...]
Bonn : IZA, 2013
Abstract: Female labor supply can insure households against shocks to paternal employment. The paper estimates whether the female labor supply response to a paternal employment shock differs by eligibility to maternity employment protection. We exploit time-state variation in the implementation of unpaid maternity leave through the Family and Medical Leave Act (FMLA) in the US which increased employment protection from 0 to 12 weeks. We find that mothers eligible for FMLA speed up their return t ...; [Read more...]
Bonn : IZA, 2018
Abstract: This paper addresses the directions to follow when designing new educational systems and school-to-work transition regimes to adhere to the needs of Industry 4.0. Although a high level of general education will be important for its training content to develop adaptability, it is not the only component to develop. What will be more and more important are work related skills, both the general ones and the ones which are job-specific and need, therefore, on-the-job training to develop. Th ...; [Read more...]
Bonn : IZA, 2012
Abstract: To improve the employment rates and earnings of Americans workers, we need to create more coherent and effective education and workforce development systems, focusing primarily (though not exclusively) on disadvantaged youth and adults, and with education and training more clearly targeted towards firms and sectors providing good-paying jobs. This paper proposes a new set of competitive grants from the federal government to states that would fund training partnerships between employers ...; [Read more...]
Bonn : IZA, 2012
Abstract: With young people among the big losers of the recent financial crisis, vocational education and training (VET) is often seen as the silver bullet to the problem of youth joblessness. This paper provides a better understanding of VET around the world, dealing with three types of vocational systems: school-based education, a dual system in which school-based education is combined with firm-based training, and informal training. We first explore the motivation for these different types of ...; [Read more...]
Bonn : IZA, 2011
Abstract: Short-time work was the "German answer" to the economic crisis. The number of short-time workers strongly increased in the recession and peaked at more than 1.5 million. Without the extensive use of short-time work, unemployment would have risen by approximately twice as much as it actually did. Short-time work has certainly contributed to the mild response of the German labor market to the crisis, but this is likely due to the country-specific context. Although the crisis has been ove ...; [Read more...]
Bonn : IZA, 2020
Abstract: The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning framework of Farber and Gibbons [1996] and Altonji and Pierret [2001]. What an instrumental variable identifies depends crucially on whether the instrument is hidden from, or observed by, the empl ...; [Read more...]
Bonn : IZA, 2012
Abstract: This summary presents the results of a study conducted by Martin Kahanec under the World Bank ASEAN Labor Markets program funded by AusAid. The primary objective of this study is to evaluate the European Union experience of the mobility of skilled labor migrants and to draw lessons from this experience for the integration of Association of Southeast Asian Nations (ASEAN) members. The EU experience of free mobility is evaluated in two specific contexts: intra-EU migration after the 2004 ...; [Read more...]
Bonn : IZA, 2012
Abstract: What are the migration policy lessons that can be learned from the Spanish case? Unlike countries with a large tradition of receiving immigrants, in Spain having a high-school degree does not give immigrants an advantage in terms of wage or occupational assimilation (relative to their native counterparts). This paper discusses the potential explanations behind this result and analyzes the consequences of this result in terms of migration policy recommendations.
Bonn : IZA, 2012
Abstract: Higher education contributes to economic innovation. This study measures and compares the extent to which national governments’ policies foster this contribution across Europe. The study stresses the relevance of policies which are ‘empowering’ for higher education institutions, or in other words provide them with appropriate resources and regulatory environments. The assessment relies on quantitative scores, based on the contribution of policies regarding funding and autonomy to highe ...; [Read more...]
Bonn : IZA, 2012
Abstract: This study provides the European Commission with an expert assessment of the main trends in the situation of migrants with regard to social assistance and access to social services, an in-depth analysis of the main determinants of these trends, and a comprehensive account of the mutual interaction of migration policies and broadly defined social assistance policies. Based on the existing evidence we conclude that there is no a priori evidence that migration would pose a burden on welfa ...; [Read more...]
Bonn : IZA, 2011
Abstract: This policy analysis paper explores the implications for the host country population of alternative immigration policies. The two immigration options considered are a policy based on admitting primarily high-skilled workers and another that has the effect of admitting primarily low-skilled workers. The implications for the native-born population for their aggregate level of income, the distribution of their income by skill level, and the size of the income redistribution system are con ...; [Read more...]
Bonn : IZA, 2011
Abstract: The main question addressed by this article is whether and how gender inequalities in wages have changed in Italy in the face of the important labour market developments of the last years. Specifically, the paper addresses gender wage inequalities in Italy in the mid-1990s and in the mid-2000s. In this period important labour market developments occurred: institutional changes have loosened the use of flexible and atypical contracts; the female employment rates and educational levels h ...; [Read more...]