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Articles 1 - 30 of 87
Full-Text Articles in Labor Economics
Navigating Unemployment Without Unemployment Insurance: Evidence From Singapore, Kim, Lanjie Wang
Navigating Unemployment Without Unemployment Insurance: Evidence From Singapore, Kim, Lanjie Wang
Research Collection School Of Economics
This study investigates the short-term impacts of unemployment among older workers (aged 50–62) in Singapore, a setting with-out public unemployment insurance. Using monthly panel data from the Singapore Life Panel, we analyse dynamic effects onmajor life outcomes such as income, spending, health, and subjective wellbeing over 2 years post-unemployment. Our findingsreveal substantial initial earnings losses with incomplete recovery: income remains 50.7% below pre-unemployment levels after24 months. Despite this persistent income gap, total household expenditure declines by 9.8% on average over 2 years (rangingfrom 7% to 16% across months). The implied two-year marginal propensity to consume is about 0.182, smaller than …
The Unintended Consequences Of International Student Shortage: Evidence From South Korea, Chung-Yoon Choi, Syngjoo Choi, Seonghoon Kim, Jongkwan Lee
The Unintended Consequences Of International Student Shortage: Evidence From South Korea, Chung-Yoon Choi, Syngjoo Choi, Seonghoon Kim, Jongkwan Lee
Research Collection School Of Economics
We study the role of international students in the higher education sector and the local economy by exploiting a policy reform in South Korea that restricted the admission of foreign students to local universities. By comparing the pre- and post-reform differences across universities with different pre-reform shares of international student enrollment, we show that an international student shortage resulting from this policy reform significantly worsened the financial outcomes of universities and consequently led to reduced investment in their students. We also document that a reduction in the number of international students in local areas decreased native employment, mainly in low-skilled …
Occupation Ladders Over The Business Cycle, Ismail Baydur, Toshihiko Mukoyama
Occupation Ladders Over The Business Cycle, Ismail Baydur, Toshihiko Mukoyama
Research Collection School Of Economics
This paper studies occupational mobility over the business cycle. We divide occupations into two broad groups, “attractive” and “nonattractive”, where we label an occupation attractive if the total net inflow into this occupation through job-to-job transition is positive. We measure total net inflows into both occupation groups. We measure these inflows separately for job-to-job transitions and transitions from unemployment to employment. We find that the net inflow from nonattractive to attractive occupations through job-to-job transitions slows during recessions. The net inflow through transitions from unemployment has a similar cyclicality. This finding suggests a novel cost of recession: during recessions, workers …
The Impact Of A Vocational Training ‘Plus’ Programme On Employment And Income, Abu S. Shonchoy, Tomoki Fujii, Selim. Raihan
The Impact Of A Vocational Training ‘Plus’ Programme On Employment And Income, Abu S. Shonchoy, Tomoki Fujii, Selim. Raihan
Research Collection School Of Economics
Following a Randomised Controlled Trial in Northern Bangladesh, this study explores the barriers to rural youth migration to urban employment hubs. By implementing a vocational training “plus” programme facilitating apparel sector employment, the study revealed significant and persistent effects of the programme on income and employment, primarily due to the addition of a stipend and on-the-job training components. Treated participants experienced significant income and remittance increases, alongside reduced income poverty, attributed to the lower job search costs and job–fit risks. Notably, the on-the-job paid apprenticeship offered a benefit–cost ratio of 8.85, demonstrating its cost-effectiveness for programme scalability.
Technifying Ventures, Yoshiki Ando, Emin Dinlersoz, Jeremy Greenwood, Ruben Piazzesi
Technifying Ventures, Yoshiki Ando, Emin Dinlersoz, Jeremy Greenwood, Ruben Piazzesi
Research Collection School Of Economics
How do advanced technology adoption and venture capital (VC) funding impact employment and growth? An analysis of data from the US Census Bureau suggests that while both advanced technology use and VC funding matter on their own for firm outcomes, their joint presence is most strongly correlated with higher employment levels. VC presence is linked with a high increase in employment, though primarily among a limited subset of firms. In contrast, technology adoption is associated with a smaller rise in employment, yet it influences a considerably larger number of firms. A model of startups is created, focusing on decisions to …
Do Government Benefit Programs Reduce Child Labor?: Causal Evidence From The Midday Meal Scheme In India, Vardaan Chawla, Tomoki Fujii, Arpita Khanna, Ray Rohan
Do Government Benefit Programs Reduce Child Labor?: Causal Evidence From The Midday Meal Scheme In India, Vardaan Chawla, Tomoki Fujii, Arpita Khanna, Ray Rohan
Research Collection School Of Economics
This study evaluates the impact of the midday meal program in India on the prevalence of child labor for upper primary school going children. The staggered implementation of the largest school feeding program in the world across states provides exogenous variation in exposure. Using the nationally representative National Sample Survey Office (NSSO) data, we find that exposure to the program reduced prevalence of child labor by 47 percent relative to children in never-treated states, with no significant difference in impact between boys and girls. The effects were primarily driven by a decline in household labor supply, especially performance of household …
Young Women In Cities: Urbanization And Gender-Biased Migration, Yumi Koh, Li Jing, Yifan Wu, Junjian Yi, Hanzhe Zhang
Young Women In Cities: Urbanization And Gender-Biased Migration, Yumi Koh, Li Jing, Yifan Wu, Junjian Yi, Hanzhe Zhang
Research Collection School Of Economics
Young women outnumber young men in cities in many countries during periods of economic growth and urbanization. This gender imbalance among young urbanites is more pronounced in larger cities. We use the gradual rollout of Special Economic Zones across China as a quasi-experiment to establish the causal impact of urbanization on gender-differentiated incentives to migrate. We highlight the role of the marriage market in increasing rural women’s chance of marrying and marrying up in urban areas during rapid urbanization.
Social Institutions And Low Birth Rates, Christine Ho, Yutao Wang
Social Institutions And Low Birth Rates, Christine Ho, Yutao Wang
Research Collection School Of Economics
We document three cross-sectional stylized facts on labor supply and family formation. First, female labor force participation (FLFP) and total fertility rates (TFRs) are much lower in Eastern societies compared to Western economies. Second, labor hours and the gender pay gap are much higher in the East than in the West. Third, parents invest more in schooling in Eastern societies compared to Western economies. To account for these features, we develop and estimate a rich heterogeneous-agent model with endogenous marriage, fertility, labor supply, and time and money investment in children. Estimates using data from South Korea and the United States …
Tackling Misperceptions About Immigrants With Fact-Checking Interventions: A Randomized Survey Experiment, Syngjoo Choi, Chung-Yoon Choi, Kim
Tackling Misperceptions About Immigrants With Fact-Checking Interventions: A Randomized Survey Experiment, Syngjoo Choi, Chung-Yoon Choi, Kim
Research Collection School Of Economics
We conduct a randomized online survey experiment to study the impact of fact-checking offers and financial incentives on misperceptions about immigrants. We find that natives overestimate the number of immigrants and the social and economic costs of immigration. Offering a free check of the factual information about immigrants reduces these misperceptions; it becomes more effective when combined with financial incentives. However, more than half of the participants never took up offers to check factual information. Using a model of information search with limited attention, we identify the presence of non-negligible costs of information search and processing, which limits the effectiveness …
Investment And The Long Swings Of Unemployment, Hian Teck Hoon, Margarita Katsimi, Gylfi Zoega
Investment And The Long Swings Of Unemployment, Hian Teck Hoon, Margarita Katsimi, Gylfi Zoega
Research Collection School Of Economics
We estimate the medium-term relationship between investment and unemployment over the period 1960–2017 in 20 OECD countries, a period that includes the years of the Great Recession. While neoclassical growth theory typically assumes full employment—with no effect of investment on unemployment—and New-Keynesian models assume that such a relationship only exists in the short term at business cycle frequencies, we find that over our sample period covering more than 5 decades, a statistically significant negative relationship does exist: in decades when investment fell, unemployment increased. Panel estimation, using a measure of stock market volatility as an instrument for investment, confirms the …
Young Women In Cities, Yumi Koh, Li Jing, Yifan Wu, Junjian Yi, Hanzhe Zhang
Young Women In Cities, Yumi Koh, Li Jing, Yifan Wu, Junjian Yi, Hanzhe Zhang
Research Collection School Of Economics
Young women outnumber young men in cities in many countries during periods of economic growth and urbanization. This gender imbalance among young urbanites is more pronounced in larger cities. We use the gradual rollout of special economic zones across China as a quasi-experiment to establish the causes of this gender imbalance. Our analysis suggests that a key contributor is gender-differential incentives to migrate due to rural women’s higher likelihood of marrying and marrying up in cities when urbanization creates more economic opportunities and an abundance of high-income marriage-age men.
Labor Market Institutions And The Incidence Of Payroll Taxation, Jinyoung Kim, Seonghoon Kim, Kanghyock Koh
Labor Market Institutions And The Incidence Of Payroll Taxation, Jinyoung Kim, Seonghoon Kim, Kanghyock Koh
Research Collection School Of Economics
Despite the unambiguous predictions of the canonical model of a competitive labor market, empirical studies of the labor market effects of payroll taxation provide conflicting evidence. We estimate the labor market impacts of payroll taxation in Singapore, the country with the most competitive and flexible labor market among the countries investigated in the literature. By exploiting the sharp reduction in payroll tax rate when workers turn 60, we find that the reduced payroll tax rate in Singapore has a large effect on wages without changes in employment. Our meta-analysis shows consistent evidence that varying degrees of labor market competitiveness across …
Rethinking The Role Of Employment Barriers In Active Labor Market Policy: Evidence From A Fixed Effects Analysis, Jian Qi Tan, Irene Y. H. Ng, Kong Weng Ho
Rethinking The Role Of Employment Barriers In Active Labor Market Policy: Evidence From A Fixed Effects Analysis, Jian Qi Tan, Irene Y. H. Ng, Kong Weng Ho
Research Collection School Of Economics
Using a panel dataset from a five-wave survey of participants in Singapore’s Work Support Programme (WSP) from 2010 to 2016, we quantify the cumulative negative impact of facing multiple employment barriers and demonstrate the association between the individual stressors and labor market indicators. Using a fixed effects model to reduce the confounding effects of unobservables, we find that a one standard deviation increase in the number of employment barriers brings about a 2.7 to 3.5 percentage point increase in the probability of being unemployed and a 58 SGD to 78 SGD decrease in individual earnings.
The Role Of Career And Wage Incentives In Labor Productivity: Evidence From A Two-Stage Field Experiment In Malawi, Hyuncheol Kim, Seonghoon Kim, Thomas Kim
The Role Of Career And Wage Incentives In Labor Productivity: Evidence From A Two-Stage Field Experiment In Malawi, Hyuncheol Kim, Seonghoon Kim, Thomas Kim
Research Collection School Of Economics
We study how career and wage incentives affect labor productivity through self-selection and incentive effect channels using a two-stage field experiment in Malawi. First, recent secondary school graduates were hired with either career or wage incentives. After employment, a half of workers with career incentives randomly received wage incentives, and a half of workers with wage incentives randomly received career incentives. Career incentives attract higher-performing workers than wage incentives, but do not increase productivity conditional on selection. Wage incentives increase productivity for those recruited through career incentives. Observable characteristics are limited in explaining selection effects of entry-level workers.
Wage-Vacancy Contracts And Multiplicity Of Equilibria In A Directed Search Model Of The Labor Market, Nicolas L. Jacquet, John Kennes, Serene Tan
Wage-Vacancy Contracts And Multiplicity Of Equilibria In A Directed Search Model Of The Labor Market, Nicolas L. Jacquet, John Kennes, Serene Tan
Research Collection School Of Economics
This paper studies a directed search model of the labour market, which is standard in all aspects except two. First, we allow firms to post wage–vacancy contracts advertising the number of workers they would pay as well as the payment all will receive. Second, we consider two cases: one where workers are risk neutral and one where workers are risk averse, both in finite and large economies. Our paper shows that when firms post wage–vacancy contracts, whether workers are modelled as risk neutral or risk averse matters: the types of symmetric equilibria and the nature of multiplicity of equilibria are …
Regional Prevalence Of Health Worker Absenteeism In Tanzania, Tomoki Fujii
Regional Prevalence Of Health Worker Absenteeism In Tanzania, Tomoki Fujii
Research Collection School Of Economics
Absenteeism of health workers in developing countries is common and can severely undermine the reliability of the health system. Therefore, it is important to understand where the prevalence of absenteeism is high. We develop a simple imputation method that combines a Service Delivery Indicators survey and a Service Provision Assessment survey to estimate the prevalence of absenteeism of health workers at the level of regions in Tanzania. The resulting estimates allow one to identify the regions in which the prevalence of absenteeism is significantly higher or lower than the national average and help policymakers determine priority areas for intervention.
Labour Research Conference 2018: Upskilling Of Mature Workers, Stephen Hoskins, Luca Facchinello
Labour Research Conference 2018: Upskilling Of Mature Workers, Stephen Hoskins, Luca Facchinello
Research Collection School Of Economics
Many developed countries are approaching an era of ageing population due to an increase in longevity and decrease in fertility rates. Singapore is no exception, having one of the fastest ageing populations in Asia, which is driven by low fertility rates and the third longest life expectancy in the world. The number of elderly citizens, defined as those aged 65 and above, is expected to triple to 900,000 by 2030, making up about 28% of the total population in Singapore (Population SG, 2016). This changing population age profile, combined with a competitive labour market, means it makes business sense to …
Regional Prevalence Of Health Worker Absenteeism In Tanzania, Tomoki Fujii
Regional Prevalence Of Health Worker Absenteeism In Tanzania, Tomoki Fujii
Research Collection School Of Economics
Absenteeism of health workers in developing countries is common and can severely undermine the reliability of health system. Therefore, it is important to understand where the prevalence of absenteeism is high. We develop a simple imputation method that combines a Service Delivery Indicators survey and a Service Provision Assessment survey to estimate the prevalence of absenteeism of health workers at the level of regions in Tanzania. The resulting estimates allow one to identify the regions in which the prevalence of absenteeism is significantly higher or lower than the national average and help policymakers determine the priority areas for intervention.
The Heterogeneous Effects Of The Minimum Wage On Employment Across States, Wuyi Wang, Peter C. B. Phillips, Liangjun Su
The Heterogeneous Effects Of The Minimum Wage On Employment Across States, Wuyi Wang, Peter C. B. Phillips, Liangjun Su
Research Collection School Of Economics
This paper studies the relationship between the minimum wage and the employment rate in the US using the framework of a panel structure model. The approach allows the minimum wage, along with some other controls, to have heterogeneous effects on employment across states which are classified into a group structure. The effects on employment are the same within each group but differ across different groups. The number of groups and the group membership of each state are both unknown a priori. The approach employs the C-Lasso technique, a recently developed classification method that consistently estimates group structure and leads to …
Occupational Shortage And Labor Market Adjustments: A Theory Of Islands, Joanne Tan, Riccardo Zago
Occupational Shortage And Labor Market Adjustments: A Theory Of Islands, Joanne Tan, Riccardo Zago
Research Collection School Of Economics
Human Resources officers report occupational shortage to be the main cause of unfilled vacancies. Yet, it is not clear whether these are empty complaints or actually lead to effective wage and employment adjustments over time. By crossing data from the UK Employer Skill Survey with the UK Labor Force Survey, we show that shortage only leads to wage and employment adjustments for non-routine occupations in England, while no such adjustment occurs for routine occupations. This result is robust to several empirical specifications and varying levels of aggregation. Moreover, firms facing routine occupation shortage are more likely to outsource these vacancies, …
The Effect Of Non-Contributory Pensions On Labour Supply And Private Income Transfers: Evidence From Singapore, Yanying Chen, Yi Jin Tan
The Effect Of Non-Contributory Pensions On Labour Supply And Private Income Transfers: Evidence From Singapore, Yanying Chen, Yi Jin Tan
Research Collection School Of Economics
Non-contributory pensions are becoming increasingly prevalent worldwide. As their effects are likely to be context-dependent, evaluating their effects in a wide range of settings is important for establishing the external validity of the non-contributory pension literature. We use a new monthly panel dataset and a difference-in-differences strategy to study the effect of a new non-contributory pension in Singapore (the Silver Support Scheme or SSS) on labour supply, work expectations, private cash transfers, and expenditure, 1 year after its implementation. We find no evidence that receiving SSS payouts led to a fall in labour supply, work expectations, or the receipt of …
Investment And The Long Swings Of Unemployment, Hian Teck Hoon, Katsimi Margarita, Gylfi Zoega
Investment And The Long Swings Of Unemployment, Hian Teck Hoon, Katsimi Margarita, Gylfi Zoega
Research Collection School Of Economics
We estimate the relationship between investment and unemployment over the time period 1960-2015 in 20 OECD countries. While neoclassical growth theory typically assumes full employment – with no effect of investment on unemployment – we find that over our sample period covering more than five decades, a statistically significant negative relationship does exist: when investment fell, unemployment increased. When the time period is broken down into two sub-periods to take account of the Great Recession, we find that the estimated coefficient of investment is slightly smaller when the period 2001-2015 is added to the 1960-2000 period. We also find a …
Barriers To Labor Migration For The Rural Poor: Experimental Evidence From A Vocational Training Program In Bangladesh, Abu S. Shonchoy, Tomoki Fujii, Selim Raihan
Barriers To Labor Migration For The Rural Poor: Experimental Evidence From A Vocational Training Program In Bangladesh, Abu S. Shonchoy, Tomoki Fujii, Selim Raihan
Research Collection School Of Economics
Vocational training programs aimed at rapidly growing sectors have the potential to reduce skill gaps as well as improve income and employment possibilities. Such programs have often been unsuccessful because they are not driven by industry demand and market linkages. Also, they do not tackle other barriers faced by trainees, such as savings and credit constraints and the uncertainty of migration. We introduced a training "plus'' program for the apparel sector jobs offered to the poor, rural households in northern Bangladesh, where we relaxed some of these constraints in a rigorous Randomized Control Trial (RCT) setting. Analyzing the program uptake …
The Selection And Causal Effects Of Work Incentives On Labor Productivity: Evidence From A Two Stage Randomized Controlled Trial In Malawi, Hyuncheol Bryant Kim, Seonghoon Kim, Thomas T. Kim
The Selection And Causal Effects Of Work Incentives On Labor Productivity: Evidence From A Two Stage Randomized Controlled Trial In Malawi, Hyuncheol Bryant Kim, Seonghoon Kim, Thomas T. Kim
Research Collection School Of Economics
Incentives are essential to promote labor productivity. We implemented a two-stage field experiment to measure effects of career and wage incentives on productivity through self-selection and causal effect channels. First, workers were hired with either career or wage incentives. After employment, a random half of workers with career incentives received wage incentives and a random half of workers with wage incentives received career incentives. We find that career incentives attract higher-performing workers than wage incentives but do not increase productivity for existing workers. Instead, wage incentives increase productivity for existing workers. Observable characteristics are limited in explaining the selection effect.
Retirement Adequacy Of Mature Workers In Singapore, Rhema Vaithianathan, Stephen Hoskins
Retirement Adequacy Of Mature Workers In Singapore, Rhema Vaithianathan, Stephen Hoskins
Research Collection School Of Economics
In the last decade, the Singapore resident population has grown older with more elderly and fewer younger people. As Singapore Department of Statistics noted, the proportion of residents aged 65 years and over has increased from 9% to 13% over the past ten years. There are now fewer working-age adults to support each resident aged 65 years and over as indicated by the falling resident old-age support ratio from 7.7 in 2007 to 5.1 in 2017. The support ratio is expected to halve to 2.5 by 2030. As Singaporeans are both living and working longer, it is vital for the …
Worker Selection, Hiring, And Vacancies, Ismail Baydur
Worker Selection, Hiring, And Vacancies, Ismail Baydur
Research Collection School Of Economics
The ratio of hirings to vacancies in the U.S. has the following establishment level properties: (i) it steeply rises with employment growth rate; (ii) falls with establishment size; and (iii) rises with worker turnover rate. The standard Diamond-Mortensen Pissarides (DMP) matching model is not compatible with these observations. This paper augments selection of workers prior to hiring into a random matching model with multi-worker firms. In the calibrated model, worker selection accounts for about 30% of the variation in the hiring-vacancy ratio observed in the data. Compared to the standard model, the worker selection model has both qualitative and quantitative …
Endogenous Quality Choice, Signaling, And Welfare, Gea M. Lee, Seung Han Yoo
Endogenous Quality Choice, Signaling, And Welfare, Gea M. Lee, Seung Han Yoo
Research Collection School Of Economics
We consider a model in which each worker endogenously selects his own type through aprivate investment decision and selects a public signal in the labor market. Signaling thencontributes to social welfare through its influence on the quality choice. We offer a rationalefor the argument that there are too many high-type workers from a welfare perspective,identifying circumstances under which separating equilibrium generates too many high-typeworkers while having to use the incentive-compatible signal and treat high-type workersdifferently in the market. The inefficiency can then be reduced in pooling equilibrium.
New Skills At Work: Managing Skills Challenges In Asean-5, Kim Song Tan, James T. H. Tang
New Skills At Work: Managing Skills Challenges In Asean-5, Kim Song Tan, James T. H. Tang
Research Collection School Of Economics
The dynamic economies of Singapore, Malaysia, Thailand, Indonesia and the Philippines (ASEAN-5) boasts a growth rate of close to 5% a year despite the sluggish global economy. However, whether ASEAN-5 can grow to be significant players in the global economy will depend critically on their abilities to train workers with relevant job skills required by growth-driving industries. This challenge requires governments and employers to work together and develop coherent policies and targeted incentive structures for workers to acquire general and job-specific skills. The report Managing Skills Challenges in ASEAN-5 provides insights and recommendations on how the ASEAN-5 countries can respond …
Tackling Technology Disruption In The Financial Sector: Are The Current Singapore Government Incentives And Labour Force Preparations Adequate?, Swee Liang Tan
Tackling Technology Disruption In The Financial Sector: Are The Current Singapore Government Incentives And Labour Force Preparations Adequate?, Swee Liang Tan
Research Collection School Of Economics
No abstract provided.
Grandchild Care, Intergenerational Transfers, And Grandparents’ Labor Supply, Christine Ho
Grandchild Care, Intergenerational Transfers, And Grandparents’ Labor Supply, Christine Ho
Research Collection School Of Economics
One-fifth of children aged below five with employed mothers benefit from grandparent provided child care as their main source of daycare in the US. Using data from the health and retirement study, we investigate how grandchild care needs relate to intergenerational transfers of time and money and grandparents’ labor supply behavior. We find that grandparents with a new born grandchild are more likely to provide grandchild care while married grandparents are also more likely to be employed and provide financial help. Grandparents with grandchildren living close by provided higher time transfers while married grandmothers with resident grandchildren also worked longer …