15,347 results on '"UNEMPLOYMENT"'
Search Results
2. Is labour force participation independent of unemployment? A panel analysis for high-income countries
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Paternesi Meloni, Walter
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- 2024
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3. Social contacts, neighborhoods and individual unemployment risk
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Poggi, Ambra
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- 2024
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4. Robots and unions: The moderating effect of organized labour on technological unemployment.
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Haapanala, Henri, Marx, Ive, and Parolin, Zachary
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TECHNOLOGICAL unemployment ,INDUSTRIAL robots ,LABOR market ,TECHNOLOGICAL innovations ,YOUNG workers ,UNEMPLOYMENT ,UNEMPLOYMENT statistics - Abstract
This study analyses the moderating effect of union density on industrial employment and unemployment in advanced economies facing exposure to industrial robots. Applying random effects within-between regression models to a pseudo-panel of observations from 27 European countries and the United States over 1998–2019, the study finds that higher union density is associated with a greater decline in industry-sector employment for younger workers and workers with lower secondary education when robot exposure increases. It is also found that the unemployment rate declines more strongly in countries with low union density when robot exposure increases. These findings suggest that exposure to industrial robots promotes labour market dualization in strongly unionized countries, whereas workers with tertiary education and labour market tenure are the main beneficiaries from technological change. [ABSTRACT FROM AUTHOR]
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- 2023
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5. Unemployment and its scarring effect on wages in Germany: evidence from linked employer-employee data
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Jost, Oskar
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- 2022
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6. COVID-19 impact on job losses in Portugal: who are the hardest-hit?
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Lopes, Ana Sofia and Carreira, Pedro
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- 2022
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7. Essays in contract and search theory
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Starmans, Jan and Edmans, Alex
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Labour economics ,Pay incentives ,Unemployment - Abstract
The three chapters in my thesis study employee incentive compensation. While the contracting literature studies optimal incentive compensation, it largely bypasses the question of which agent a firm should hire in the first place. In the first chapter of my thesis, I develop a joint theory of incentive compensation and hiring decisions in a setting where different agents generate different probability distributions of output under effort, which capture differences in employee characteristics such as education and experience. I show how contractual frictions such as limited liability can bias hiring decisions. The results imply a novel link between incentives and hiring, which I further explore in the second and third chapter in the context of a frictional labor market. The second chapter develops a theory of contract and rent dispersion in a frictional labor market, and studies the implications of the incentive and compensation problem for a principal's search and hiring decisions. In the third chapter, I use these insights to build a theory of search unemployment with dispersion in incentive pay.
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- 2018
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8. The promise and peril of youth entrepreneurship in the Middle East and North Africa
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Krafft, Caroline and Rizk, Reham
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- 2021
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9. Life satisfaction of employees, labour market tightness and matching efficiency
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de Pedraza, Pablo, Guzi, Martin, and Tijdens, Kea
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- 2021
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10. Tackling Graduate Unemployment.
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ALVİ, Imran Uddin
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EMPLOYMENT statistics , *UNEMPLOYMENT , *ISLAMIC literature , *UNEMPLOYMENT statistics , *ACHIEVEMENT gains (Education) , *CONCEPTUAL models , *WELL-being ,ISLAMIC countries - Abstract
Youth unemployment is a growing, global issue with regions of the Muslim world being particularly exposed to the problem. This paper examines a sub-set of this issue; graduate unemployment. In particular, it seeks to understand the role of student aspirations, knowledge, and motivation in tackling this issue. The paper draws on the Islamic literature to develop a theoretical framework of ‘Uluww-al-himmah, high-aiming aspirations, and Rajaa, true hope. These concepts are studied with the aim of improving not only graduate employment rates but also the well-being of graduates who do not find employment. The theoretical framework provides a more holistic approach through which policy-makers may address the issue of graduate unemployment by delineating four interrelated axes that impact graduate employment, namely, Reach, Purity of Purpose, Knowledge and Strength of Intention. By doing so, the framework facilitates the appraisal of educational spending by intervention type, thus highlighting underserved priority areas; allows policy interventions to be evaluated through the tracking of student progress against each axis; and allows policy interventions to be customized at the individual student level to reflect the heterogeneity present between students. The paper therefore provides a fresh perspective for policy-makers and institutional leaders to pursue. [ABSTRACT FROM AUTHOR]
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- 2022
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11. Automation, Unemployment, and Taxation.
- Author
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Parr, Tom
- Subjects
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TECHNOLOGICAL unemployment , *UNEMPLOYMENT , *AUTOMATION , *TECHNOLOGICAL risk assessment , *TAXATION - Abstract
Automation can bring the risk of technological unemployment, as employees are replaced by machines that can carry out the same or similar work at a fraction of the cost. Some believe that the appropriate response is to tax automation. In this paper, I explore the justifiability of view, maintaining that we can embrace automation so long as we compensate those employees whose livelihoods are destroyed by this process by creating new opportunities for employment. My contribution in this paper is important not only because I develop a theoretical framework that we can use to resolve this urgent policy dispute--a dispute that has been discussed extensively by labour economists, tax lawyers, and policymakers, but largely neglected by political philosophers--but also because my analysis sheds lights on a wider range of controversies relating to the moral and political importance of unemployment. [ABSTRACT FROM AUTHOR]
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- 2022
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12. Richard Layard (1934–)
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Jackman, Richard and Cord, Robert A., editor
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- 2019
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13. A tool to systematise discrimination in labour market integration : An application to ageism
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Naegele, Laura, De Tavernier, Wouter, Hess, Moritz, and Frerichs, Frerich
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- 2020
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14. Wage Curve
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Blanchflower, David G., Oswald, Andrew J., and Macmillan Publishers Ltd
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- 2018
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15. Labour Economics
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Freeman, Richard B. and Macmillan Publishers Ltd
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- 2018
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16. The Effects of State Business Taxes on Plant Closures: Evidence from Unemployment Insurance Taxation and Multiestablishment Firms
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Audrey Guo
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Economics and Econometrics ,Labour economics ,State (polity) ,media_common.quotation_subject ,Unemployment ,Economics ,Social Sciences (miscellaneous) ,media_common - Abstract
This paper investigates the extent to which state-level differences in business taxes influence the location decisions of multiestablishment firms. Each state in the United States administers their own unemployment insurance program, and cross-state variation leads to significant tax differences across state lines. This decentralized administration creates opposing employment incentives on the intensive and extensive margins depending on the economic conditions. Studying the locations of multistate manufacturing firms, I find that firms are more likely to exit from high-tax states during economic downturns, but high-tax plants experience more stable employment during nonrecession years.
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- 2023
17. Unemployment invariance hypothesis, added and discouraged worker effects in Canada
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Tansel, Aysit and Ozdemir, Zeynel Abidin
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- 2018
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18. Unemployment persistence : theoretical and empirical developments
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Knights, Stephen J. R., Bond, S. R., and Gregory, M.
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331.130941 ,Economics ,Econometrics ,Labour economics ,unemployment persistence ,unemployment ,state dependence ,persistence ,heterogeneity ,screening - Abstract
This thesis presents three chapters on the subject of unemployment persistence. Two of the chapters are empirically focussed and the other is a purely theoretic work. Unemployment persistence is defined as the existence of serial correlation in individual employment outcomes. The first chapter finds evidence for unemployment persistence among men and women in the Australian youth labour market. Individual labour market dynamics are analysed using the Australian Longitudinal Survey. The analytic framework used is a Random Effects Probit model, incorporating lagged employment status as an explanatory variable status. Results support a “scarring” effect of unemployment upon individuals’ future employment prospects. The second chapter provides decision-theoretic foundations for unemployment persistence, based upon heterogeneous intrinsic productivity among workers. A representative firm is assumed to receive an imperfectly precise signal of worker ability every period, and re-forms its beliefs every period using a Bayesian updating method. A model of the dynamic behaviour of optimal employment decisions by the firm is constructed. It is shown that under certain circumstances workers of all productivities may be “scarred” in the eyes of the firm by past unemployment, due to the firm’s being unwilling to hire from an unemployment pool of dubious quality. The third chapter presents a detailed investigation into how to measure unemployment persistence within the UK. The chapter presents several modelling strategies capable of being used to analyse panel data of a binary nature, and discusses how to decide which methods are most appropriate in particular environments. Panel data on men from the British Household Panel Survey are used to estimate a structural state dependence equation in employment status, where lagged employment status is used as an explanatory variable. Particular attention is given to controlling for unobserved heterogeneity between individuals. The empirical results indicate strong evidence of unemployment persistence.
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- 2011
19. Size of training firms – the role of firms, luck, and ability in young workers’ careers
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Müller, Steffen and Neubaeumer, Renate
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- 2018
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20. Does marital status affect how firms interpret job applicants’ un/employment histories?
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Maurer-Fazio, Margaret and Wang, Sili
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- 2018
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21. How does labour market history influence the access to hiring interviews?
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Duguet, Emmanuel, Le Gall, Rémi, L’Horty, Yannick, and Petit, Pascale
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- 2018
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22. Labor markets, academic performance and school dropout risk: evidence for Spain
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Guio, Juan, Choi, Álvaro, and Escardíbul, Josep-Oriol
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- 2018
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23. Hiring discrimination, ethnic origin and employment status
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Pierné, Guillaume
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- 2018
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24. Labour market fluctuations in GIPS – shocks vs adjustments
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Antosiewicz, Marek and Lewandowski, Piotr
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- 2017
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25. Unemployment insurance and labour productivity over the business cycle
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W. Similan Rujiwattanapong
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Economics and Econometrics ,Labour economics ,Matching (statistics) ,Great Moderation ,General equilibrium theory ,media_common.quotation_subject ,HC Economic History and Conditions ,Recession ,HD Industries. Land use. Labor ,Variable (computer science) ,Unemployment ,Economics ,Business cycle ,Productivity ,media_common - Abstract
This paper quantifies the effects of the increasing maximum unemployment insurance (UI) duration during recessions on the drop in the correlation between output and labour productivity in the U.S. since the early 1980’s - the so-called productivity puzzle. Using a general equilibrium search and matching model with stochastic UI duration, heterogeneous match quality, variable search intensity and on-the-job search, I demonstrate that the model can explain over 40 percent of the drop in this correlation (28 percent when the Great Moderation is taken into account). More generous UI extensions during recent recessions cause workers to be more selective with job offers and lower job search effort. The former channel raises the overall productivity in bad times. The latter prolongs UI extensions since in the U.S. they are triggered by high unemployment.
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- 2022
26. Learning on the Job and the Cost of Business Cycles
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Andreas Westermark and Karl Walentin
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Stabilization policy ,Labour economics ,Matching (statistics) ,Incentive ,media_common.quotation_subject ,Unemployment ,Economics ,Business cycle ,Average level ,Human capital ,Welfare ,General Economics, Econometrics and Finance ,media_common - Abstract
We show that business cycles reduce welfare through a decrease in the average level of employment in a labor market search model with learning on the job and skill loss during unemployment. Empirically, unemployment and the job-finding rate are negatively correlated. Since new jobs are the product of these two from the employment transition equation, business cycles imply fewer new jobs. Learning on the job implies that the resulting decrease in employment reduces aggregate human capital. This reduces incentives to post vacancies, further decreasing employment and human capital. We quantify this mechanism and find large output and welfare costs of business cycles. (JEL D83, E23, E24, E32, J24, J63)
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- 2022
27. Inflation expectations, labour markets and EMU
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Curto Millet, Fabien and Muellbauer, John
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332.4 ,Economics ,Economic history ,Labour economics ,Macro and international economics ,Econometrics ,inflation ,inflation expectations ,expectations ,inflation perceptions ,perceptions ,survey data ,quantification ,wage equations ,labour markets ,labor markets ,euro ,flexibility ,competitiveness ,labour market institutions ,institutions ,rationality ,Phillips curve ,consumers ,expert forecasts ,expectations distribution ,distribution ,inflation targeting ,prices ,deflation ,wages ,productivity ,unemployment ,wage level ,wage differentials ,compensation ,benefits ,labor costs ,nonwage labor costs ,public policy ,unions ,trade unions ,collective bargaining ,monetary policy ,central banks ,macroeconomics ,policy design ,applied econometrics ,policy coordination ,credibility ,exchange rate mechanism ,forecasting ,equilibrium correction models ,time series ,survey methods ,econometric modeling ,Europe ,European Union ,European Monetary Union - Abstract
This thesis examines the measurement, applications and properties of consumer inflation expectations in the context of eight European Union countries: France, Germany, the UK, Spain, Italy, Belgium, the Netherlands and Sweden. The data proceed mainly from the European Commission's Consumer Survey and are qualitative in nature, therefore requiring quantification prior to use. This study first seeks to determine the optimal quantification methodology among a set of approaches spanning three traditions, associated with Carlson-Parkin (1975), Pesaran (1984) and Seitz (1988). The success of a quantification methodology is assessed on the basis of its ability to match quantitative expectations data and on its behaviour in an important economic application, namely the modelling of wages for our sample countries. The wage equation developed here draws on the theoretical background of the staggered contracts and the wage bargaining literature, and controls carefully for inflation expectations and institutional variables. The Carlson-Parkin variation proposed in Curto Millet (2004) was found to be the most satisfactory. This being established, the wage equations are used to test the hypothesis that the advent of EMU generated an increase in labour market flexibility, which would be reflected in structural breaks. The hypothesis is essentially rejected. Finally, the properties of inflation expectations and perceptions themselves are examined, especially in the context of EMU. Both the rational expectations and rational perceptions hypotheses are rejected. Popular expectations mechanisms, such as the "rule-of-thumb" model or Akerlof et al.'s (2000) "near-rationality hypothesis" are similarly unsupported. On the other hand, evidence is found for the transmission of expert forecasts to consumer expectations in the case of the UK, as in Carroll's (2003) model. The distribution of consumer expectations and perceptions is also considered, showing a tendency for gradual (as in Mankiw and Reis, 2002) but non-rational adjustment. Expectations formation is further shown to have important qualitative features.
- Published
- 2007
28. Fast Rises, Slow Declines: Asymmetric Unemployment Dynamics with Matching Frictions
- Author
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Domenico Ferraro
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Counterfactual thinking ,Matching (statistics) ,Labour economics ,Economics and Econometrics ,media_common.quotation_subject ,Wage ,Cyclical asymmetry ,Convexity ,Skewness ,Accounting ,Unemployment ,Econometrics ,Economics ,Positive skewness ,Finance ,media_common - Abstract
This paper argues that the canonical search-and-matching model cannot generate the observed cyclical asymmetry of the unemployment rate. In the United States, the unemployment rate raises quickly and abruptly at the onset of contractions and declines slowly and gradually during expansions. This pattern produces positive skewness in the distribution of unemployment rate changes, while the model produces a counterfactually negative skewness. The key feature of the model responsible for this counterfactual prediction is the convexity of hiring costs in aggregate employment, which leads to excessive responsiveness of job vacancies to positive shocks in periods of high unemployment. I argue that the inability of the model to replicate the cyclical asymmetry in the data stands regardless of its ability to generate realistic fluctuations in unemployment. Furthermore, high replacement rates and real wage rigidity (both fixed and downward rigid wages) - commonly used to enhance amplification of shocks - do not resolve the puzzle, rather they make it worse.
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- 2022
29. To claim or to retire : The social security claiming decision of employed and unemployed workers
- Author
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Fawaz, Yarine
- Published
- 2017
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30. Scar on my heart: effects of unemployment experiences on coronary heart disease
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Ardito, Chiara, Leombruni, Roberto, Mosca, Michele, Giraudo, Massimiliano, and d’Errico, Angelo
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- 2017
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31. Entrepreneurial efforts and opportunity costs: evidence from twitch streamers
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Philip Wollborn, David Dornekott, and Ulrike Holder
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History ,Labour economics ,Entrepreneurship ,Opportunity cost ,Polymers and Plastics ,Exploit ,media_common.quotation_subject ,Context (language use) ,Industrial and Manufacturing Engineering ,Management Information Systems ,Work (electrical) ,Service (economics) ,Management of Technology and Innovation ,Unemployment ,Business ,Business and International Management ,Self-employment ,media_common - Abstract
With the rise of digital platforms, individuals’ possibilities to generate income have increased drastically. In this context, we present digital content creation as a form of (digital) entrepreneurship that is characterized by potentially high but also uncertain revenues. As the cost structure of content creation mostly depends on opportunity costs, it stands in contrast to other popular platform-work options. We demonstrate how a stark and unexpected reduction in opportunity costs affects the actual decision to produce digital content. Exploiting the first wave of the COVID-19 pandemic, we measure how individuals (streamers) who operate on a live streaming platform, respond to a sudden change in external factors while accounting for individual differences in initial conditions. We observe intensified efforts across the spectrum of streamers and find particularly strong reactions from newcomer streamers. We further show that only the most successful newcomers sustain their increased efforts even when opportunity costs start to rise again. Our results are consistent with the initial assumption that an individual’s decision on taking up or intensifying entrepreneurial efforts on digital platforms is strongly affected by their opportunity costs. The results further imply that there is a large potential in individuals who might be willing to become entrepreneurs but are restricted by external conditions. As platform-based digital entrepreneurship offers high flexibility and very low entry barriers, measures for lowering opportunity costs could therefore help to unleash this potential. To maintain a steady influx of new talents, content platforms should increase their support for smaller creators and policymakers should provide easily accessible platforms to ease the way into entrepreneurship for these individuals.
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- 2023
32. Added worker effect during the Great Recession: evidence from Italy
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Ghignoni, Emanuela and Verashchagina, Alina
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- 2016
- Full Text
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33. Automation, Bargaining Power, and Labor Market Fluctuations
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Zheng Liu and Sylvain Leduc
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Labour economics ,Bargaining power ,Incentive ,media_common.quotation_subject ,Unemployment ,Business cycle ,Economics ,Wage ,Position (finance) ,Real wages ,Productivity ,media_common - Abstract
We study the implications of automation for labor market fluctuations in a Diamond-Mortensen-Pissarides (DMP) framework that is generalized to incorporate automation decisions. If a job opening is not filled with a worker, a firm can choose to automate that position and use a robot instead of a worker to produce output. The threat of automation strengthens the firm's bargaining power against job seekers in wage negotiations, depressing equilibrium real wages in a business cycle boom. The option of automation also increases the value of a vacancy, raising the incentive for job creation, and thereby amplifying fluctuations in vacancies and unemployment relative to the standard DMP framework. Since automation improves labor productivity while muting wage increases, it implies a countercyclical labor income share, as observed in the data.
- Published
- 2022
34. Investigating the Effects of Minimum Wages on Employment, Unemployment and Labour Participation in Java: A Dynamic Spatial Panel Approach
- Author
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Tifani Husna Siregar
- Subjects
Economics and Econometrics ,Labour economics ,Employment/unemployment ,ComputingMilieux_THECOMPUTINGPROFESSION ,Informal sector ,Java ,050204 development studies ,media_common.quotation_subject ,05 social sciences ,ComputerApplications_COMPUTERSINOTHERSYSTEMS ,Development ,0502 economics and business ,Unemployment ,Economics ,Spatial econometrics ,050207 economics ,computer ,media_common ,computer.programming_language ,District level - Abstract
Using district level data for urban areas in Java, we reassess the impacts of minimum wages on formal and informal sector employment, unemployment and labour participation. We employ the spatial Du...
- Published
- 2022
35. The Employment Effects of Lump-Sum and Contingent Job Insurance Policies: Evidence from Brazil
- Author
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Diogo G. C. Britto and Britto, D
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Economics and Econometrics ,Labour economics ,media_common.quotation_subject ,Developing country ,Context (language use) ,UNEMPLOYMENT INSURANCE ,UNEMPLOYMENT INSURANCE, SEVERANCE PAY, LABOR INFORMALITY ,Insurance policy ,SEVERANCE PAY ,Unemployment ,Economics ,Displacement (orthopedic surgery) ,LABOR INFORMALITY ,Lump sum ,Social Sciences (miscellaneous) ,media_common ,Severance - Abstract
Lump-sum job displacement policies (e.g., severance pay) are often presented as a better alternative to contingent policies (e.g., unemployment insurance) in the context of developing countries, under the rationale that the former are less harmful to formal employment as they do not incentivize substitution from formal to informal jobs. First, this paper provides original evidence on the employment effects of lump-sum income in the context of a developing country with high labor informality. A regression discontinuity (RD) design, using Brazilian data, shows that a transfer equivalent to fifteen days of earnings (a) increases the duration out of a formal job by 1.9 weeks, (b) reduces monthly earnings in the next job by 1.6%, and (c) reduces total earnings in the formal labor market by 3.6% over a three-year period. Second, the paper studies the impact of a one-month extension in unemployment insurance (UI) on a comparable sample of displaced workers. UI is shown to have a stronger impact on the duration out of a formal job compared with a lump-sum transfer. In addition, a novel exercise matching administrative and survey data shows that 57% of the decrease in formal employment caused by UI is compensated by an increase in the incidence of informal employment. However, workers receiving the UI extension partially recover the initial employment loss over time in such a way that the adverse impact on employment over a three-year period is similar compared with the lump-sum transfer. Moreover, UI is found to be less harmful to reemployment wages, possibly because it improves workers' bargaining power as it offers insurance against the duration of joblessness. Overall, the UI extension is less detrimental to total earnings in the formal labor market over a three-year period. Hence, although these findings indicate that contingent job insurance policies have a stronger impact on the initial duration out of a formal job and indeed incentivize informal employment, they do not support the notion that lump-sum policies are less harmful to formal employment and earnings in the medium term.
- Published
- 2022
36. Automation and inequality with taxes and transfers
- Author
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Yixiao Zhou and Rod Tyers
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Real income ,education.field_of_study ,Labour economics ,Economics and Econometrics ,General equilibrium theory ,Sociology and Political Science ,media_common.quotation_subject ,Population ,Capital good ,Income distribution ,Earned income tax credit ,Unemployment ,Economics ,education ,Total factor productivity ,media_common - Abstract
The dependence of real income and inequality on changes in factor abundance, total factor productivity, factor bias, the relative cost of capital goods and the progressivity of the tax system are quantified using an elemental general equilibrium model with three households. Observed declines in low-skill labour shares are shown to have been generic in the OECD and to have been responsible for most of the increase in US inequality between 1990 and 2016. The widely anticipated future twist away from low-skill labour toward capital is then examined, in combination with expected changes in population and its skill composition. With downward rigidity of low-skill wages the potential is identified for unemployment to rise to extraordinarily high levels. Productivity growth at twice the pace since 1990 is shown to limit this, though it does not slow the concentration of income. The superior policy response is shown to be a generalization of the US “earned income tax credit” system, with financing from taxes on consumption, rather than capital income.
- Published
- 2022
37. Involuntary Unemployment Under Ongoing Nominal Wage Rate Decline in Overlapping Generations Model
- Author
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Yasuhito Tanaka
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Monopolistic competition ,Labour economics ,Deficit spending ,Returns to scale ,media_common.quotation_subject ,Profit maximization ,Unemployment ,Economics ,General Medicine ,Overlapping generations model ,Involuntary unemployment ,Deflation ,media_common - Abstract
We analyze involuntary unemployment based on consumers’ utility maximization and firms’ profit maximization behavior with ongoing nominal wage rate decline. We consider a three-periods overlapping generations (OLG) model with a childhood period as well as younger and older periods under monopolistic competition with increasing, decreasing or constant returns to scale technology. When there exists involuntary unemploymnet, the nominal wage rate may decline. We examine the existenbce of involuntary unemployment in that model with ongoing mominal wage rate decline (or deflation). Even if the nominal wage rate declines, we have a steady state with involuntary unemployment and constant output and employment. We need budget deficit or budget surplus to maintain the steady state depending on whether real balance effect is positive or negative. Also we examine the possibility to achieve full-employment by fiscal policy.
- Published
- 2022
38. Timing Law School
- Author
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Michael Simkovic and Frank McIntyre
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Class size ,Labour economics ,History ,Earnings ,Polymers and Plastics ,media_common.quotation_subject ,Recession ,Industrial and Manufacturing Engineering ,Cohort effect ,Law ,Unemployment ,Cohort ,Economics ,Business and International Management ,Legal profession ,media_common ,Graduation - Abstract
We investigate whether economic conditions at labor market entry predict long-term differences in law graduate earnings. We find that unemployment levels at graduation continue to predict law earnings premiums within 4 years after graduation for earners at the high end and middle of the distribution. However, the relation fades as law graduates gain experience and the difference in lifetime earnings is moderate. This suggests that earnings figures from After the JD II and III -- which track law graduates who passed the bar exam in 2000 -- are likely generalizable to other law cohorts because these studies are outside the window when graduation conditions predict differences in subsequent earnings.Outcomes data available prior to matriculation do not predict unemployment or starting salaries at graduation. Earnings premiums are not predicted by BLS projected job openings. While changes in cohort size predict changes in the percent of law graduates practicing law, we find little evidence that changes in cohort size predict changes in earnings. This suggests that law graduates who switch to other occupations when law cohort sizes increase are not hurt financially by larger cohorts. For medium to high earning graduates, successfully timing law school predicts a higher value of a law degree ex-post, but simulations show that no strategy for ex-ante timing is readily available.This article has been accepted for publication in the Journal of Empirical Legal Studies.A powerpoint presentation of an earlier version of this article is available at: http://ssrn.com/abstract=2612634.
- Published
- 2023
39. Economic complexity and jobs: an empirical analysis
- Author
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Antonis Adam, Antonios Garas, Marina-Selini Katsaiti, and Athanasios Lapatinas
- Subjects
Job creation ,unemployment ,Labour economics ,Index (economics) ,Economic complexity ,media_common.quotation_subject ,05 social sciences ,Developing country ,product sophistication ,Oecd countries ,employment ,Product (business) ,Management of Technology and Innovation ,0502 economics and business ,Unemployment ,Economics ,050207 economics ,General Economics, Econometrics and Finance ,Sophistication ,050203 business & management ,media_common - Abstract
This paper analyses the impact of economic complexity on the labour market using annual data on OECD countries for the period 1985-2008 and averaged data over the period 1990-2010 for 70 developed and developing countries with a large number of controls. We show that moving to higher levels of economic sophistication of exported goods leads to less unemployment and more employment, revealing that economic complexity does not induce job loss. Our findings remain robust across alternative econometric specifications. Furthermore, we place the spotlight on the link between products' embodied knowledge (sophistication) and labour market outcomes at the micro-level. We build a product-level index that attaches a product to the average level of unemployment (or employment) in the countries that export it. With this index, we illustrate how the development of sophisticated products is associated with changes in the labour market and show that the economic sophistication of exported goods captures information about the economy's job creation and destruction., Economics of Innovation and New Technology, 32 (1), ISSN:1043-8599, ISSN:1476-8364
- Published
- 2023
40. Beyond the marginalization thesis : Evaluating the participation of the formally employed in the shadow economy in the European Union
- Author
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Colin C Williams and Ioana Alexandra Horodnic
- Published
- 2016
- Full Text
- View/download PDF
41. No Free Lunch After All: Corporate Political Connections and Firms’ Location Choices
- Author
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Bo Zhao, Jiangyong Lu, Wei Zheng, and Nan Jia
- Subjects
Organizational Behavior and Human Resource Management ,Politics ,Labour economics ,Management of Technology and Innovation ,Strategy and Management ,media_common.quotation_subject ,Unemployment ,Economics ,No free lunch in search and optimization ,China ,media_common - Abstract
We examine how the presence of a firm’s political connections in a candidate location affects the firm’s likelihood of choosing that location over unconnected but otherwise comparable ones to establish a new subsidiary. First, because of various benefits that political connections can generate for firms, all else equal, firms are more likely to choose the locations in which they have connections with local political leaders. Second, this effect is dampened when local economic conditions may drive local politicians to demand that connected firms engage in economically inefficient but politically desirable tasks, such as hiring superfluous labor. As a result, firms are less likely to choose a politically connected location that also suffers from higher unemployment. Moreover, this dampening effect exists (and becomes stronger) when the connected politicians hold political positions that shoulder greater responsibility for resolving local unemployment issues. Using data on all new subsidiaries established by Chinese listed firms from 2003 to 2009, we obtain empirical evidence that corroborates the hypotheses. Therefore, whether and how firms use their political connections in making location choice is strategic in that it is highly dependent on the economic and political context.
- Published
- 2022
42. Is this time really different? How the impact of the COVID‐19 crisis on labour markets contrasts with that of the global financial crisis of 2008–09
- Author
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Sher Verick, Sangheon Lee, and Dorothea Schmidt-Klau
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Organizational Behavior and Human Resource Management ,Labour economics ,2019-20 coronavirus outbreak ,Coronavirus disease 2019 (COVID-19) ,business.industry ,Strategy and Management ,Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) ,media_common.quotation_subject ,Developing country ,Management of Technology and Innovation ,Unemployment ,Financial crisis ,Economics ,Food service ,business ,Accommodation ,media_common - Abstract
The COVID-19 pandemic has resulted in a more severe labour market crisis in 2020 than witnessed during the 2009 global financial crisis. Reflecting the effects of lockdown measures, which has been the main cause of damage to labour markets, the deepest impacts have been found in middle-income economies, while certain sectors, such as accommodation and food services, and groups, especially young women, have been more negatively affected over 2020. Contrary to the adjustment process during previous shocks, the COVID-19 crisis has resulted in a greater rise in inactivity than unemployment. Policy support needs to be maintained to avoid an unequal recovery.
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- 2022
43. Short-time work: a bridge to employment security or a springboard to unemployment?
- Author
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Katja Chkalova, Dimitris Pavlopoulos, Sociology, and Social Inequality and the Life Course (SILC)
- Subjects
Organizational Behavior and Human Resource Management ,Labour economics ,unemployment ,short-time work ,Strategy and Management ,media_common.quotation_subject ,05 social sciences ,050209 industrial relations ,Labour market flexibility ,SDG 8 - Decent Work and Economic Growth ,General Business, Management and Accounting ,Bridge (interpersonal) ,Great recession ,labour market flexibility ,Work (electrical) ,Management of Technology and Innovation ,8. Economic growth ,0502 economics and business ,Unemployment ,Economics ,050207 economics ,media_common - Abstract
This article investigates the employment effect of short-time work in the Netherlands during the Great Recession (2009–2011). Short-time work was introduced during the period as a special arrangement with the aim of reducing unemployment hikes by offering firms the possibility of adjusting the working time of specialised workers rather than adjust the size of their workforce. The authors focus on the effect of short-time work at the individual level of the worker and study whether short-time programme participants in surviving firms had a lower job turnover rate and transition rate to unemployment compared to workers who did not participate in the programme. Furthermore, the authors study whether the flexibility policies of the firm had a substantial influence on the effectiveness of short-time work in protecting workers from unemployment. Specifically, they investigate whether the effect of short-time work is related to the intensiveness of its use by the firm and the extensiveness of the use of external flexibility arrangements – i.e. temporary contracts and temporary agency workers – by the firm. For this purpose, the authors apply a discrete-time survival model using a unique dataset with monthly register data from Statistics Netherlands. Participants in the short-time work programme are compared with non-participant workers from firms that used short-time work and workers from firms that did not make use of the programme. The findings indicate that, in surviving firms, short-time work had a positive effect: the risk of unemployment and job separation is, in most cases, lower for short-time work participants than non-participants. Short-time work is most effective in protecting workers from unemployment in firms that extended the use of the programme to many workers and for a relatively small number of hours, and that made either moderate use of temporary agency workers or extensive use of fixed-term contracts.
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- 2022
44. Some Recent Developments in Labour Economics.
- Author
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Dolton, Peter J.
- Subjects
ECONOMIC development ,ECONOMIC policy ,LABOR market ,ECONOMETRICS ,UNEMPLOYMENT - Abstract
This article takes a short personal ‘helicopter ride’ over the main policy issues in the UK labour market, putting them into the context of the developments which have taken place in applied econometrics. We overview NIESR's role in the study of labour economics in postwar Britain and review some recent advances of importance in the current Institute research agenda. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
45. Starting Business Out of Unemployment: How Do Supported Self-employed Individuals Perform?
- Author
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Ondřej Dvouletý
- Subjects
Entrepreneurship ,Labour economics ,Strategy and Management ,media_common.quotation_subject ,05 social sciences ,Management of Technology and Innovation ,0502 economics and business ,Unemployment ,Economics ,Self employed ,050207 economics ,Business and International Management ,Business management ,050203 business & management ,Self-employment ,media_common - Abstract
The study empirically contributes to the discussion on the effects of start-up subsidies for unemployed individuals as a part of the active labour market policy. The article provides insights into the survival and performance of the subsidized businesses in the Czech Republic. The study follows up cohorts of self-employed individuals that were supported during years 2009–2017. The obtained findings show that a vast majority of the supported businesses were still officially active 2 years after the allocation of the start-up subsidy, and even later. The firm-level data further relieve that most of the individuals starting a business out of unemployment stay solo (only less than four per cent of self-employed individuals employ besides themselves at least one employee) and the economic outcomes of the subsidized businesses, measured as annual turnover, are rather modest. The empirical results further showed that higher intensity of public support is negatively associated with business closure and positively with employment and turnover categories. The study concludes that the start-up subsidy for unemployed succeeded in activating unemployed individuals to pursue an economic activity, although further research concerning other outcome variables such as personal income, job satisfaction and well-being is needed.
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- 2022
46. The cyclicality of labor force participation flows: The role of labor supply elasticities and wage rigidity
- Author
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Isabel Cairo, Camilo Morales-Jimenez, and Shigeru Fujita
- Subjects
Economics and Econometrics ,Labour economics ,Matching (statistics) ,Incentive ,Rigidity (electromagnetism) ,Margin (finance) ,media_common.quotation_subject ,Unemployment ,Value (economics) ,Wage ,Economics ,Price elasticity of supply ,media_common - Abstract
Using a representative-household search and matching model with endogenous labor force participation, we study the cyclicality of labor market transition rates between employment, unemployment, and nonparticipation. When interpreted through the lens of the model, the cyclical behavior of transition rates implies that the participation margin is strongly countercyclical: the household's incentive to send the workers to the labor force falls in expansions. We identify two key channels through which the model delivers this result: (i) procyclical values of non-market activities and (ii) wage rigidity. The smaller the value of the extensive-margin labor supply elasticity is, the stronger the first channel is. Wage rigidity helps because it mitigates increases in the return to market work during expansions. Our estimated model replicates well the behavior of transition rates between the three labor market states and thus the stocks, once both features are in place.
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- 2022
47. Does public sector employment buffer the minimum wage effects?
- Author
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Lucas Navarro and Mauricio Tejada
- Subjects
Counterfactual thinking ,Economics and Econometrics ,Labour economics ,Matching (statistics) ,business.industry ,media_common.quotation_subject ,05 social sciences ,Public sector ,Human capital ,0502 economics and business ,Unemployment ,Economics ,050207 economics ,Minimum wage ,business ,Welfare ,050205 econometrics ,media_common - Abstract
This paper studies the impact of a minimum wage policy in a labor market with a private and a public sector. We develop a two-sector search and matching model with minimum wage and heterogeneous workers in their human capital. We structurally estimate the model using data for Chile, a country with a large fraction of employment in the public sector and a binding minimum wage. Counterfactual analysis shows that institutional features of public sector employment reduce labor market frictions and mitigate the negative effect of the minimum wage on unemployment and welfare.
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- 2022
48. The Cyclical Behavior of Unemployment and Wages under Information Frictions
- Author
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Camilo Morales-Jimenez
- Subjects
Labour economics ,Incentive ,Opportunity cost ,media_common.quotation_subject ,0502 economics and business ,05 social sciences ,Unemployment ,Economics ,050207 economics ,Volatility (finance) ,General Economics, Econometrics and Finance ,050205 econometrics ,media_common - Abstract
I propose a new mechanism for sluggish wages based on workers' noisy information about the state of the economy. Wages do not respond immediately to a positive aggregate shock because workers do not (yet) have enough information to demand higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment: flexibility of wages for new hires and pro-cyclicality of the opportunity cost of employment. Calibrated to U.S. data, the model explains 70% of unemployment volatility.
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- 2022
49. Temporary layoffs, short-time work and COVID-19: the case of a dual labour market
- Author
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Victoria Osuna and José Ignacio García Pérez
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Labour economics ,Macroeconomic model ,Payroll ,media_common.quotation_subject ,Unemployment ,Workforce ,Economics ,Context (language use) ,Dual labour market ,General Economics, Econometrics and Finance ,Human capital ,Welfare ,media_common - Abstract
Purpose This paper aims to study the type of short-time work (STW) schemes implemented in Spain to preserve jobs and workers’ incomes during the COVID-19 crisis and the corresponding labour market outcomes. Design/methodology/approach A dynamic macroeconomic model of job creation and destruction of the search and matching type in a dual labour market. Findings The model shows that the availability of STW schemes does not necessarily prevent a large increase in unemployment and job destruction. The quantitative effects depend on the degree of subsidization of payroll taxes and on the design of the policy. A scenario with a moderate degree of subsidization and where the subsidy is independent of the reduction in hours worked is the least harmful for both welfare and fiscal deficit. The cost of such a strategy is a higher unemployment rate. Concerning heterogeneous effects, the unemployed are the ones who experience the strongest distributional changes. Originality/value The effectiveness of STW schemes in dual labour markets using a search and matching model in the context of the COVID-19 crisis has not been analysed elsewhere. The literature has emphasized the importance of dynamics, labour market institutions and workers’ heterogeneity to understand workforce adjustment decisions in the face of temporary shocks to de- mand especially when firms’ human capital is relevant. These elements are present in the model. In addition, this paper computes welfare and distributional effects and the cost of these policies.
- Published
- 2021
50. The billion pound drop
- Author
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Hans R.A. Koster, Gerard Dericks, Spatial Economics, and Tinbergen Institute
- Subjects
Economics and Econometrics ,Labour economics ,media_common.quotation_subject ,Geography, Planning and Development ,Pound (mass) ,Globalization ,Global city ,Rlab ,0502 economics and business ,Economics ,Revenue ,050207 economics ,050205 econometrics ,media_common ,computer.programming_language ,Economies of agglomeration ,05 social sciences ,Economic rent ,R14 ,regulation ,R38 ,R33 ,SDG 11 - Sustainable Cities and Communities ,Unemployment ,office rents ,Redevelopment ,computer ,agglomeration economies - Abstract
This paper exploits locally exogenous variation in the location of bombs dropped during the Blitz to quantify the effect of density restrictions on agglomeration economies in London: an elite global city. Employing microgeographic data on office rents and employment, this analysis points to effects for London several multiples larger than the existing literature which primarily derives its results from secondary cities. In particular, doubling employment density raises rents by 25%. Consequently if the Blitz had not taken place, the resulting loss in agglomeration economies to present day London would cause total annual office rent revenues to fall by $4:5 billion {equivalent to 1:2% of London's annual GDP. These results illuminate the substantial impact of land-use regulations in one of the world's largest and most productive cities.
- Published
- 2021
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