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Full-Text Articles in Labor Economics

How Employers Shape The Earnings Gap Between Mothers And Fathers, Rebecca Jack, Daniel Tannenbaum, Brendan Timpe May 2025

How Employers Shape The Earnings Gap Between Mothers And Fathers, Rebecca Jack, Daniel Tannenbaum, Brendan Timpe

Employment Research Newsletter

No abstract provided.


Do Older Workers Change Their Labor Supply In Response To Housing Wealth Shocks?, Brian J. Asquith Apr 2025

Do Older Workers Change Their Labor Supply In Response To Housing Wealth Shocks?, Brian J. Asquith

Upjohn Institute Working Papers

Do older workers change their labor supply in response to unexpected housing wealth losses (or gains)? Housing wealth is the largest component in most older Americans’ portfolios, and they may seek to recoup losses by working longer to help smooth consumption in retirement. Despite its importance, prior studies have not arrived at a consensus answer. I perform three different analyses to re-approach this question using Health and Retirement Study (HRS) data: a descriptive analysis, two separate differences-in-differences-indifferences analyses exploiting the China Shock and the Great Recession, and an analysis employing autoregressive models for estimating unexpected shocks to housing price appreciation. …


How New Mass Transit Affects Labor Markets: The Honolulu Skyline, Justin Tyndall Apr 2025

How New Mass Transit Affects Labor Markets: The Honolulu Skyline, Justin Tyndall

Upjohn Institute Policy and Research Briefs

No abstract provided.


How The H-2b Visa Lottery Helped Businesses During Covid, Parag Mahajan Apr 2025

How The H-2b Visa Lottery Helped Businesses During Covid, Parag Mahajan

Upjohn Institute Policy and Research Briefs

No abstract provided.


“Essential” Migrants: Evidence From The 2020 H-2b Visa Lottery, Parag Mahajan Apr 2025

“Essential” Migrants: Evidence From The 2020 H-2b Visa Lottery, Parag Mahajan

Upjohn Institute Working Papers

I study how access to foreign-born workers impacts firms and local economics in times of acute crisis. The 2020 H-2B visa lottery randomly gave some U.S. firms the chance to hire low-wage, migrant workers during the height of the COVID-19 pandemic. Using administrative data across three government agencies, I find that access to H-2B workers led to decreased business closures, increased revenues, increased payroll, and increased employment in 2020. I also find suggestive evidence that these effects spilled over to non-participant firms within the same county.


How Do Workers And Firms Bargain Over Wages?, Sydnee Caldwell, Ingrid Haegele, Jӧrg Heining Mar 2025

How Do Workers And Firms Bargain Over Wages?, Sydnee Caldwell, Ingrid Haegele, Jӧrg Heining

Upjohn Institute Policy and Research Briefs

No abstract provided.


Bargaining And Inequality In The Labor Market, Sydnee Caldwell, Ingrid Haegele, Jӧrg Heining Mar 2025

Bargaining And Inequality In The Labor Market, Sydnee Caldwell, Ingrid Haegele, Jӧrg Heining

Upjohn Institute Working Papers

We use novel surveys of firms and workers, linked to administrative employer-employee data, to study the prevalence and importance of individual bargaining in wage determination. We show that simple survey questions accurately elicit firms’ bargaining strategies. Using the elicited strategies for 772 German firms, we document that the majority of firms are willing to engage in individual wage bargaining. Labor market factors predict firms’ strategies better than firm characteristics. Survey responses from nearly 10,000 full-time workers indicate that most worker-firm interactions begin with the worker rejecting the offer and remaining at the incumbent firm. There is substantial heterogeneity in workers’ …


How Government-Funded Factories Helped A Generation Access The Middle Class, Andrew Garin, Jonathan Rothbaum Mar 2025

How Government-Funded Factories Helped A Generation Access The Middle Class, Andrew Garin, Jonathan Rothbaum

Upjohn Institute Policy and Research Briefs

No abstract provided.


How Employers Shape The Earnings Gap Between Mothers And Fathers, Rebecca Jack, Daniel Tannenbaum, Brenden Timpe Mar 2025

How Employers Shape The Earnings Gap Between Mothers And Fathers, Rebecca Jack, Daniel Tannenbaum, Brenden Timpe

Upjohn Institute Policy and Research Briefs

No abstract provided.


Short-Run Economic Effects Of Michigan's State-Funded Preschool Programs, Timothy J. Bartik Feb 2025

Short-Run Economic Effects Of Michigan's State-Funded Preschool Programs, Timothy J. Bartik

Upjohn Institute Policy Papers

This policy paper estimates the short-run economic effects of the Great Start Readiness Program (GSRP), Michigan’s state-funded preschool program for 4-year-olds. The paper considers 15year effects on state residents’ per capita incomes due to impacts on employment rates and real wages, as well as cost-savings from free preschool and fiscal benefits due to tax base expansion. These 15-year effects ignore the program’s outcomes for child participants and focus on how the Michigan economy is affected by GSRP’s direct impacts on parents and preschool teachers. The estimates use a regional econometric model of a state’s economy, developed originally to evaluate economic …


The Parenthood Gap: Firms And Earnings Inequality After Kids, Rebecca Jack, Daniel Tannenbaum, Brenden Timpe Feb 2025

The Parenthood Gap: Firms And Earnings Inequality After Kids, Rebecca Jack, Daniel Tannenbaum, Brenden Timpe

Upjohn Institute Working Papers

We document the dynamics of career paths around parenthood, capturing worker advancement within firms and across firms with differing pay rates. Using a new linkage between administrative data on U.S. workers’ fertility and labor market histories, we show that the parental earnings gap is partly explained by mothers transitioning to lower-paying firms. Firm downgrading is driven by parents who take an extended absence from the labor force. Mothers who move to lower-paying firms see improved job amenities but less generous fringe benefits. The firm’s contribution to the parental earnings gap rises over time and reaches one-third by the child’s 11th …


The Past, Present, And Future Of Long-Run Local Population Decline, Brian J. Asquith, Evan Mast Jan 2025

The Past, Present, And Future Of Long-Run Local Population Decline, Brian J. Asquith, Evan Mast

Employment Research Newsletter

No abstract provided.


What Is The Value Of The Child And Dependent Care Credit?, Gabrielle Pepin Dec 2024

What Is The Value Of The Child And Dependent Care Credit?, Gabrielle Pepin

Upjohn Institute Working Papers

The Child and Dependent Care Credit (CDCC) subsidizes child care costs for working families. In response to the Covid-19 pandemic, the American Rescue Plan Act of 2021 increased the CDCC’s generosity during 2021 only. I find that while the CDCC is of relatively little value in its current form, increases in eligibility rates and conditional benefits under the pandemic expansion increased the credit’s value dramatically. Conditional on CDCC eligibility, higher-income households experienced the largest increases in benefit levels under the expanded CDCC, but lower-income households benefited disproportionately when measuring benefits as a share of income or child care spending.


New Employer Payroll Taxes And Entrepreneurship, Audrey Guo, Melanie Wallskog Dec 2024

New Employer Payroll Taxes And Entrepreneurship, Audrey Guo, Melanie Wallskog

Upjohn Institute Working Papers

How costly are taxes for young firms? In this paper, we demonstrate that even small payroll taxes significantly distort entry, growth, and hiring decisions. First, leveraging cross-sectional variation in the taxes faced by new employers, we find that higher taxes discourage new firms from hiring their first workers, with an elasticity of the number of new employers to taxes of −0.1. Second, studying changes in taxes after entry, we find that higher taxes lead more firms to exit, while also reducing employment for those who survive and leading some firms to avoid taxes by using non-taxable contract labor.


Predicting Rail Transit Impacts With Endogenous Worker Choice: Evidence From Oahu, Justin Tyndall Nov 2024

Predicting Rail Transit Impacts With Endogenous Worker Choice: Evidence From Oahu, Justin Tyndall

Upjohn Institute Working Papers

The provision of public transportation can improve the accessibility of work opportunities. However, predicting the labor market effects of new transit infrastructure is difficult because of endogenous worker decisions. I examine a large public-transit rail project on the island of Oahu, Hawaii. Using block-level commuter-flow and travel-time estimates, I propose and estimate a quantitative spatial model of location and mode choice for workers. I estimate that the new rail system increases public-transit-mode share and the employment rate but does not reduce the average commute duration, because of endogenous worker sorting. Low-income workers on Oahu capture a significant share of transit’s …


Introducing Slms: Spillover-Based Local Labor Markets, Timothy J. Bartik Nov 2024

Introducing Slms: Spillover-Based Local Labor Markets, Timothy J. Bartik

Presentations

No abstract provided.


Economic Vitality Index: Mapping Michigan’S 83 Counties, Sevrin Williams, Iryna V. Lendel Nov 2024

Economic Vitality Index: Mapping Michigan’S 83 Counties, Sevrin Williams, Iryna V. Lendel

Reports

No abstract provided.


Occupational Projections For Skilled Trades In Kalamazoo County, 2023-2032, Sevrin Williams, Michael Horrigan, Iryna V. Lendel Oct 2024

Occupational Projections For Skilled Trades In Kalamazoo County, 2023-2032, Sevrin Williams, Michael Horrigan, Iryna V. Lendel

Upjohn Institute Technical Reports

No abstract provided.


“Just Right” Definitions Of Local Labor Markets: Introducing Slms, Timothy J. Bartik Oct 2024

“Just Right” Definitions Of Local Labor Markets: Introducing Slms, Timothy J. Bartik

Upjohn Institute Policy and Research Briefs

No abstract provided.


Reduced School Tracking Increased Educational Attainment And Fertility In France, Serena Canaan Oct 2024

Reduced School Tracking Increased Educational Attainment And Fertility In France, Serena Canaan

Employment Research Newsletter

No abstract provided.


“Just Right” Definitions Of Local Labor Markets: Introducing Slms, Timothy J. Bartik Oct 2024

“Just Right” Definitions Of Local Labor Markets: Introducing Slms, Timothy J. Bartik

Employment Research Newsletter

No abstract provided.


Aaron Sojourner’S Beginner’S Guide To Bluesky, Aaron Sojourner Oct 2024

Aaron Sojourner’S Beginner’S Guide To Bluesky, Aaron Sojourner

Employment Research Newsletter

No abstract provided.


Local Labor Markets Should Be Redefined: New Definitions Based On Estimated Demand-Shock Spillovers, Timothy J. Bartik Oct 2024

Local Labor Markets Should Be Redefined: New Definitions Based On Estimated Demand-Shock Spillovers, Timothy J. Bartik

Upjohn Institute Working Papers

This paper provides estimates that lead to better U.S. labor market definitions. Current U.S. labor market definitions—for example, metropolitan areas and commuting zones—are unsatisfactory because they are ad hoc and usually do not correspond to commonly used local planning areas. This paper proposes basing U.S. labor market definitions on how a job shock to a county affects nearby counties’ employment rates. New estimates of county spillovers are presented. Using these estimated spillovers, new multicounty labor market definitions are based on maximizing a weighted sum of total spillovers captured, versus taking the average size of within-market effects. These new “spillover-defined local …


The Past, Present, And Future Of Long-Run Local Population Decline, Brian J. Asquith, Evan Mast Oct 2024

The Past, Present, And Future Of Long-Run Local Population Decline, Brian J. Asquith, Evan Mast

Upjohn Institute Policy and Research Briefs

No abstract provided.


Broadly Shared Local Economic Success: New Measures And New Lessons For Communities, Timothy J. Bartik Oct 2024

Broadly Shared Local Economic Success: New Measures And New Lessons For Communities, Timothy J. Bartik

Presentations

No abstract provided.


Birth Dearth And Local Population Decline, Brian J. Asquith, Evan Mast Oct 2024

Birth Dearth And Local Population Decline, Brian J. Asquith, Evan Mast

Upjohn Institute Working Papers

Local population decline has spread rapidly since 1970, with half of counties losing population between 2010 and 2020. The workhorse economic models point to net out-migration, likely driven by changing local economies and amenities, as the cause of this trend. However, we show that the share of counties with high net out-migration has not increased. Instead, falling fertility has caused migration rates that used to generate growth to instead result in decline. When we simulate county populations from 1970 to the present holding fertility at its initial level, only 10 percent of counties decline during the 2010s.


Race And The Manufacturing Workforce: Opportunities To Expand Growth And Equity In A Rebounding Industry Sector, Benjamin Armstrong, Matthew D. Wilson, Nichola J. Lowe Sep 2024

Race And The Manufacturing Workforce: Opportunities To Expand Growth And Equity In A Rebounding Industry Sector, Benjamin Armstrong, Matthew D. Wilson, Nichola J. Lowe

Upjohn Institute Policy Papers

This paper provides an overview of the manufacturing work experience of different racial groups. Our goal is to lend support to “middle-out” policy responses that seek to promote greater economic opportunity across the country through targeted sector growth, including manufacturing, while also bringing together people of all races in support of manufacturing regeneration. By pinpointing persistent inequities in U.S. manufacturing, we hope to embolden policy responses that ensure that as the manufacturing sector rebounds and continues to evolve, its high-paying, good-quality jobs are also more inclusive of workers of color.


The Effect Of Franchise No-Poaching Restrictions On Worker Earnings, Brian Callaci, Matthew Gibson, Sérgio Pinto, Marshall Steinbaum, Matt Walsh Sep 2024

The Effect Of Franchise No-Poaching Restrictions On Worker Earnings, Brian Callaci, Matthew Gibson, Sérgio Pinto, Marshall Steinbaum, Matt Walsh

Upjohn Institute Working Papers

We evaluate the nationwide impact of the Washington State attorney general’s 2018-2020 enforcement campaign against no-poach clauses in franchising contracts, which prohibited worker movement across locations within a chain. Implementing a staggered difference-in-differences research design using Burning Glass Technologies job vacancies and Glassdoor salary reports from numerous industries, we estimate a 6 percent increase in posted annual earnings from the job vacancy data and a 4 percent increase in worker-reported earnings.


Reduced School Tracking Increased Educational Attainment And Fertility In France, Serena Canaan Aug 2024

Reduced School Tracking Increased Educational Attainment And Fertility In France, Serena Canaan

Upjohn Institute Policy and Research Briefs

No abstract provided.


The Impact Of Delaying Early School Tracking On Fertility And Marriage Outcomes, Serena Canaan Aug 2024

The Impact Of Delaying Early School Tracking On Fertility And Marriage Outcomes, Serena Canaan

Upjohn Institute Working Papers

This paper studies how the type of education pursued at an early age affects family formation. I focus on a French reform that delayed the age of which students were tracked into either general or vocational education from age 11 to age 13. For the most part, tracking was replaced with grouping students into classrooms based on ability, but within a common general education curriculum. Using a regression discontinuity design, I show that the reform increased the likelihood of attaining a technical rather than a vocational degree, especially for individuals from low socioeconomic backgrounds. This indicates that the reform led …