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Full-Text Articles in Labor Economics

Tax Credits For Child Care Increase Take Up And May Help More Mothers Work, Gabrielle Pepin Aug 2020

Tax Credits For Child Care Increase Take Up And May Help More Mothers Work, Gabrielle Pepin

Upjohn Institute Policy and Research Briefs

No abstract provided.


The Effects Of Child Care Subsidies On Paid Child Care Participation And Labor Market Outcomes: Evidence From The Child And Dependent Care Credit, Gabrielle Pepin Aug 2020

The Effects Of Child Care Subsidies On Paid Child Care Participation And Labor Market Outcomes: Evidence From The Child And Dependent Care Credit, Gabrielle Pepin

Upjohn Institute Working Papers

The Child and Dependent Care Credit (CDCC), a tax credit based on taxpayers’ income and child care expenses, reduces families’ child care costs. The nonrefundable federal CDCC is available to working families with children younger than 13 years old in all states, and nearly half of states supplement the federal credit with their own child care credits. The Economic Growth and Tax Relief Reconciliation Act expanded the federal CDCC in 2003, which led to differential increases in CDCC generosity across states and family sizes. I document CDCC eligibility and expenditures over time and across income and demographic groups. Using data …


The Aftermath Of The Pandemic Recession: The Role Of Economic Development Policy, Timothy J. Bartik Jul 2020

The Aftermath Of The Pandemic Recession: The Role Of Economic Development Policy, Timothy J. Bartik

Presentations

No abstract provided.


The Enduring Local Harm From Recessions, Brad J. Hershbein, Bryan A. Stuart Jul 2020

The Enduring Local Harm From Recessions, Brad J. Hershbein, Bryan A. Stuart

Employment Research Newsletter

No abstract provided.


Job Search And Hiring With Two-Sided Limited Information About Workseekers’ Skills, Eliana Carranza, Robert Garlick, Kate Orkin, Neil Rankin Jun 2020

Job Search And Hiring With Two-Sided Limited Information About Workseekers’ Skills, Eliana Carranza, Robert Garlick, Kate Orkin, Neil Rankin

Upjohn Institute Working Papers

We present field experimental evidence that limited information about workseekers’ skills distorts both firm and workseeker behavior. Assessing workseekers’ skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers’ employment and earnings. It also aligns their beliefs and search strategies more closely with their skills. Giving assessment results only to workseekers has similar effects on beliefs and search, but smaller effects on employment and earnings. Giving assessment results only to firms increases callbacks. These patterns are consistent with two-sided information frictions, a new finding that can inform design of information-provision mechanisms.


The Heterogeneous Labor Market Impacts Of The Covid-19 Pandemic, Guido Matias Cortes, Eliza C. Forsythe May 2020

The Heterogeneous Labor Market Impacts Of The Covid-19 Pandemic, Guido Matias Cortes, Eliza C. Forsythe

Upjohn Institute Working Papers

We study the distributional consequences of the Covid-19 pandemic’s impacts on employment. Using CPS data on stocks and flows, we show that the pandemic has exacerbated pre-existing inequalities. Although employment losses have been widespread, they have been substantially larger in lower-paying occupations and industries. Individuals from disadvantaged groups, such as Hispanics, younger workers, those with lower levels of education, and women, have suffered both larger increases in job losses and larger decreases in hiring rates. Occupational and industry affiliation can explain only part of the increased job losses among these groups.


What Can We Learn From The 1918 Pandemic? Careful Economics And Policy Lessons From Influenza, Brian J. Asquith May 2020

What Can We Learn From The 1918 Pandemic? Careful Economics And Policy Lessons From Influenza, Brian J. Asquith

Upjohn Institute Policy Papers

Economists and policymakers have turned to the 1918 Spanish flu for guidance on the COVID-19 crisis, and some have been cheered by the example of its sharp post-pandemic economic recovery. Policymakers have also been encouraged to use lockdowns and school closures (called non-pharmaceutical interventions, or NPIs) in part by research showing that 1918’s NPIs saved lives while aiding the subsequent economic recovery. I review a wide range of research to caution that our own recovery will likely be harder and slower because of how the economy has evolved. I conclude by discussing pro-recovery policy that account for post-1918 economic changes.


Do Stronger Employment Discrimination Protections Decrease Reliance On Social Security Disability Insurance? Evidence From The U.S. Social Security Reforms, Patrick Button, Mashfiqur R. Khan May 2020

Do Stronger Employment Discrimination Protections Decrease Reliance On Social Security Disability Insurance? Evidence From The U.S. Social Security Reforms, Patrick Button, Mashfiqur R. Khan

Upjohn Institute Working Papers

The United States Social Security Amendments of 1983 (SSA1983) increased the full retirement age (FRA) and increased penalties for retiring before the FRA. This cut to retirement benefits caused spillover effects on Social Security Disability Insurance (SSDI) applications and receipt by making SSDI relatively more generous. We explore if stronger disability and age discrimination laws moderated these spillovers, using variation whereby many state laws are broader or stronger than federal law. We estimate the effects of these laws on SSDI applications and receipt using a difference-in-differences approach, comparing cohorts affected by SSA1983 to similarly aged unaffected cohorts, across states. We …


Place-Based Policy: An Essay In Two Parts, Timothy J. Bartik May 2020

Place-Based Policy: An Essay In Two Parts, Timothy J. Bartik

Upjohn Institute Policy Papers

Place-based policies that increase jobs in local labor markets can have large benefits, but current policies need reforms. Local job growth can have large benefits by increasing local employment-to-population ratios (employment rates). These employment rate benefits are larger if jobs are created in local labor markets that are distressed, or if new jobs are matched to the local nonemployed. Current place-based policies are mostly business tax incentives, provided by state and local governments. These incentives are costly per job actually created by the incentive. More cost-effective job creation are public services to businesses, such as customized job training or business …


The Enduring Local Harm From Recessions, Brad J. Hershbein, Bryan A. Stuart May 2020

The Enduring Local Harm From Recessions, Brad J. Hershbein, Bryan A. Stuart

Upjohn Institute Policy and Research Briefs

No abstract provided.


The Evolution Of Local Labor Markets After Recessions, Brad J. Hershbein, Bryan A. Stuart May 2020

The Evolution Of Local Labor Markets After Recessions, Brad J. Hershbein, Bryan A. Stuart

Upjohn Institute Working Papers

This paper studies how U.S. local labor markets respond to employment losses that occur during recessions. Following recessions from 1973 through 2009, we find that areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly, these local labor markets also experience persistent decreases in the employment-population ratio, earnings per capita, and earnings per worker. Our results imply that limited population responses result in longer-lasting consequences for local labor markets than previously thought, and that recessions are followed by persistent reallocation of employment across space.


Most Self-Employed Workers Are Independent Contractors, Katharine G. Abraham, Brad J. Hershbein, Susan N. Houseman Apr 2020

Most Self-Employed Workers Are Independent Contractors, Katharine G. Abraham, Brad J. Hershbein, Susan N. Houseman

Upjohn Institute Policy and Research Briefs

No abstract provided.


Coronavirus And The Economy: Repurposing Production, Helping The Needy, Saving Businesses, And Encouraging Job Preservation, Timothy J. Bartik, Brad J. Hershbein Apr 2020

Coronavirus And The Economy: Repurposing Production, Helping The Needy, Saving Businesses, And Encouraging Job Preservation, Timothy J. Bartik, Brad J. Hershbein

Employment Research Newsletter

No abstract provided.


Contract Work At Older Ages, Katharine G. Abraham, Brad J. Hershbein, Susan N. Houseman Mar 2020

Contract Work At Older Ages, Katharine G. Abraham, Brad J. Hershbein, Susan N. Houseman

Upjohn Institute Working Papers

The share of workers who are self-employed rises markedly with age. Given policy concerns about inadequate retirement savings, especially among those with lower education, and the resulting interest in encouraging employment at older ages, it is important to understand the role that self-employment arrangements play in facilitating work among seniors. New data from a survey module fielded on a Gallup telephone survey distinguish independent contractor work from other self-employment and provide information on informal and online platform work. The Gallup data show that, especially after accounting for individuals who are miscoded as employees, self-employment is even more prevalent at older …


The Political Economy Of Inequality: U.S. And Global Dimensions, Sisay Asefa Editor, Wei-Chiao Huang Editor Mar 2020

The Political Economy Of Inequality: U.S. And Global Dimensions, Sisay Asefa Editor, Wei-Chiao Huang Editor

Upjohn Press

The contributors to this book discuss a variety of forms of social inequality which include large gaps in accumulated assets, discrepancies in access to quality education, unstable family life, lack of access to banking services, poor employment prospects, lack of health care services, and underrepresentation for political and legal matters. Together, they show how these forms of inequality are interrelated with income inequality and that, taken together, they pose the risk for societal and political unrest should they be left unresolved.


Variability In U.S. Labor Markets: A Presentation To The Workers’ Compensation Research Institute, Michael Horrigan Mar 2020

Variability In U.S. Labor Markets: A Presentation To The Workers’ Compensation Research Institute, Michael Horrigan

Presentations

No abstract provided.


The Long-Term Effects Of Labor Market Entry In A Recession: Evidence From The Asian Financial Crisis, Eleanor Jawon Choi, Jaewoo Choi, Hyelim Son Feb 2020

The Long-Term Effects Of Labor Market Entry In A Recession: Evidence From The Asian Financial Crisis, Eleanor Jawon Choi, Jaewoo Choi, Hyelim Son

Upjohn Institute Working Papers

This paper investigates the long-term effects of initial labor market conditions by comparing cohorts who graduated from college before, during, and after the 1997–1998 Asian financial crisis in South Korea. We measure the overall welfare effect by examining their labor market activities, family formation, and household finances. Using data from 20 waves of the Korean Labor and Income Panel Study, we find a substantial and persistent reduction in employment, earnings, marriage, fertility, and asset building among men who graduated during a recession. For women, limited job opportunities at graduation result in an increase in childbearing. Our results suggest that labor …


Should Place-Based Jobs Policies Be Used To Help Distressed Communities? Yes, But Current Policies Need Reforms, Timothy J. Bartik Dec 2019

Should Place-Based Jobs Policies Be Used To Help Distressed Communities? Yes, But Current Policies Need Reforms, Timothy J. Bartik

Presentations

No abstract provided.


The Importance Of Informal Work In Supplementing Household Income, Katharine G. Abraham, Susan N. Houseman Nov 2019

The Importance Of Informal Work In Supplementing Household Income, Katharine G. Abraham, Susan N. Houseman

Upjohn Institute Policy and Research Briefs

No abstract provided.


The Importance Of Informal Work In Supplementing Household Income, Katharine G. Abraham, Susan N. Houseman Oct 2019

The Importance Of Informal Work In Supplementing Household Income, Katharine G. Abraham, Susan N. Houseman

Employment Research Newsletter

No abstract provided.


Immigrants And The U.S. Wage Distribution, Vasil I. Yasenov Oct 2019

Immigrants And The U.S. Wage Distribution, Vasil I. Yasenov

Upjohn Institute Working Papers

A large body of literature estimates the relative wage impacts of immigration on low- and high-skill natives, but it is unclear how these effects map onto changes of the wage distribution. I document the movement of foreign-born workers in the U.S. wage distribution, showing that, since 1980, they have become increasingly overrepresented in the bottom. Downgrading of education and experience obtained abroad partially drives this pattern. I then undertake two empirical approaches to deepen our understanding of the way foreign-born workers shape the wage structure. First, I estimate a standard theoretical model featuring constant elasticity of substitution technology and skill …


Evaluation Of Per Scholas As An Employee Recruiting Tool For Businesses, Lee Adams, Jing Cai, Janelle Grant, Brad J. Hershbein, Bridget F. Timmeney Sep 2019

Evaluation Of Per Scholas As An Employee Recruiting Tool For Businesses, Lee Adams, Jing Cai, Janelle Grant, Brad J. Hershbein, Bridget F. Timmeney

Reports

No abstract provided.


Does The Healthcare Educational Market Respond To Short-Run Local Demand?, Marcus Dillender, Andrew Friedson, Cong Gian, Kosali Simon Sep 2019

Does The Healthcare Educational Market Respond To Short-Run Local Demand?, Marcus Dillender, Andrew Friedson, Cong Gian, Kosali Simon

Upjohn Institute Policy and Research Briefs

No abstract provided.


Does The Healthcare Educational Market Respond To Short-Run Local Demand?, Marcus Dillender, Andrew Friedson, Cong Gian, Kosali Simon Aug 2019

Does The Healthcare Educational Market Respond To Short-Run Local Demand?, Marcus Dillender, Andrew Friedson, Cong Gian, Kosali Simon

Upjohn Institute Working Papers

The Patient Protection and Affordable Care Act (ACA) increased demand for healthcare across the U.S., but it is unclear if or how the supply side has responded to meet this demand. In this paper, we take advantage of plausibly exogenous geographical heterogeneity in the ACA in order to examine the response of the healthcare education sector to increased demand for healthcare services. We look across educational fields, types of degrees, and types of institutions; we pay particular attention to settings where our conceptual model predicts heightened responses. We find no statistically significant evidence of increases in graduates and can rule …


Should Place-Based Jobs Policies Be Used To Help Distressed Communities?, Timothy J. Bartik Aug 2019

Should Place-Based Jobs Policies Be Used To Help Distressed Communities?, Timothy J. Bartik

Upjohn Institute Working Papers

Should policymakers seek to increase jobs in particular local labor markets? Yes, but only if these policies are well targeted and designed. Encouraging job growth in distressed places can cause persistent gains in employment-to-population ratios. But our current place-based jobs policies, under which state and local governments provide long-term tax incentives to megacorporations, are poorly targeted and designed. Such incentives are as large in nondistressed areas as in distressed areas, and they are excessively costly. What reforms are needed? First, job growth policies should target distressed areas. Second, tax incentives should be focused on high-multiplier businesses, such as high-tech firms. …


Computerization Of White Collar Jobs, Marcus Dillender, Eliza C. Forsythe Aug 2019

Computerization Of White Collar Jobs, Marcus Dillender, Eliza C. Forsythe

Upjohn Institute Working Papers

We investigate the impact of computerization of white-collar jobs on wages and employment. Using online job postings from 2007 and 2010-2016 for office and administrative support (OAS) jobs, we show that when firms adopt new software at the job-title level they increase the skills required of job applicants. Furthermore, firms change the task content of such jobs, broadening them to include tasks associated with higher-skill office functions. We aggregate these patterns to the local labor-market level, instrumenting for technology adoption with national measures. We find that a 1 standard deviation increase in OAS technology usages reduces employment in OAS occupations …


Bias And Productivity In Humans And Machines, Bo Cowgill Aug 2019

Bias And Productivity In Humans And Machines, Bo Cowgill

Upjohn Institute Working Papers

Where should better learning technology (such as machine learning or AI) improve decisions? I develop a model of decision-making in which better learning technology is complementary with experimentation. Noisy, inconsistent decision-making introduces quasi-experimental variation into training datasets, which complements learning. The model makes heterogeneous predictions about when machine learning algorithms can improve human biases. These algorithms can remove human biases exhibited in historical training data, but only if the human training decisions are sufficiently noisy; otherwise, the algorithms will codify or exacerbate existing biases. Algorithms need only a small amount of noise to correct biases that cause large productivity distortions. …


Should We Target Jobs At Distressed Places, And If So, How?, Timothy J. Bartik Jul 2019

Should We Target Jobs At Distressed Places, And If So, How?, Timothy J. Bartik

Upjohn Institute Policy and Research Briefs

No abstract provided.


Medical Innovation And The Employment Of Cancer Patients, R. Vincent Pohl Jul 2019

Medical Innovation And The Employment Of Cancer Patients, R. Vincent Pohl

Employment Research Newsletter

No abstract provided.


Search And Multiple Jobholding, Etienne Lalé Jun 2019

Search And Multiple Jobholding, Etienne Lalé

Upjohn Institute Working Papers

A search-theoretic model of the labor market with idiosyncratic fluctuations in hours worked, search both off- and on-the-job, and multiple jobholding is developed. Taking on a second job entails a commitment to hold onto the primary employer, enabling the worker to use the primary job as her outside option to bargain with the secondary employer. The model performs well at explaining multiple jobholding inflows and outflows, and it is informative for understanding the secular decline in multiple jobholding. While some worry that this decline heralds a less-flexible labor market, the model reveals that it has contributed to reducing search frictions.