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  1. Frictional spatial equilibrium
    Autor*in: Schmutz, Benoît; Sidibé, Modibo
    Erschienen: [2021]
    Verlag:  Center for Research in Economics and Statistics, Palaiseau, France

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    Sprache: Englisch
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    Schriftenreihe: Working paper series / Center for Research in Economics and Statistics ; no. 2021, 01
    Schlagworte: city size; local labor market; frictions; on-the-job search; migration
    Umfang: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  2. Social optimum in a model with hierarchical firms and endogenous promotion time
    Autor*in: Mitkova, Mariya Valeriy
    Erschienen: September 8, 2020
    Verlag:  Verein für Socialpolitik, [Köln]

    This paper develops a search and matching model with hierarchical firms, human capital accumulation, internal promotions and on-the-job search. At the time of their market entry firms maximize present value of profits with respect to their promotion... mehr

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    This paper develops a search and matching model with hierarchical firms, human capital accumulation, internal promotions and on-the-job search. At the time of their market entry firms maximize present value of profits with respect to their promotion rule. Workers who are eligible for promotion but cannot be promoted because the senior position in the firm is taken start searching on-the-job. The decentralized equilibrium is then compared to the socially optimal one. The welfare analysis is conducted in two steps: in the first one fixed firm entry is assumed, while in the second firm entry is determined by a free-entry condition. Under fixed firm entry, the social planner can induce aprrox. 5% welfare gain by imposing earlier promotion timing compared to the one firms choose in the decentralized equilibrium. The inefficiency of the decentralized equilibrium is caused by strategic complementarity in firms' promotion choices. If a firm delays internal promotions it creates a negative externality on all other firms by reducing the pool of potential candidates to the high productivity senior jobs. However, due to strategic complementarity the competitors respond by also increasing their promotion requirement. Imposing a free-entry condition further reveals that in the decentralized equilibrium firm entry is biased downwards which exacerbates the allocative inefficiency in the economy.

     
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    hdl: 10419/224589
    Schriftenreihe: Jahrestagung 2020 / Verein für Socialpolitik ; 81
    Schlagworte: promotions; on-the-job search; human capital; efficiency
    Umfang: 1 Online-Ressource (circa 43 Seiten), Illustrationen
  3. Present bias in the labor market
    when it pays to be naive
    Autor*in: Fahn, Matthias; Seibel, Regina
    Erschienen: [2022]
    Verlag:  Department of Economics, Johannes Kepler University of Linz, Linz-Auhof, Austria

    We study optimal employment contracts for present-biased employees if firms cannot commit to long-term contracts. Assuming that an employee's effort increases his chances to obtain a future benefit, we show that individuals who are naive about their... mehr

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    We study optimal employment contracts for present-biased employees if firms cannot commit to long-term contracts. Assuming that an employee's effort increases his chances to obtain a future benefit, we show that individuals who are naive about their present bias will actually be better off than sophisticated or time-consistent individuals. Moreover, firms might benefit from being ignorant about the extent of an employee's naivet'e. Our results also indicate that naive employees might be harmed by policies such as employment protection or a minimum wage, whereas sophisticated employees are better of

     
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    hdl: 10419/269913
    Schriftenreihe: Working paper / Department of Economics, Johannes Kepler University of Linz ; no. 2204 (April 2022)
    Schlagworte: Present bias; labor markets; on-the-job search; moral hazard
    Umfang: 1 Online-Ressource (circa 52 Seiten)
  4. Job ladder, human capital, and the cost of job loss
    Autor*in: Audoly, Richard; De Pace, Federica; Fella, Giulio
    Erschienen: [2022]
    Verlag:  Federal Reserve Bank of New York, New York, NY

    High-tenure workers losing their job experience a large and prolonged fall in wages and earnings. The aim of this paper is to understand and quantify the forces behind this empirical regularity. We propose a structural model of the labor market with... mehr

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    High-tenure workers losing their job experience a large and prolonged fall in wages and earnings. The aim of this paper is to understand and quantify the forces behind this empirical regularity. We propose a structural model of the labor market with (i) on-the-job search, (ii) general human capital, and (iii) firmspecific human capital. Jobs are destroyed at an endogenous rate due to idiosyncratic productivity shocks and the skills of workers depreciate during periods of non-employment. The model is estimated on German Social Security data. By jointly matching moments related to workers' mobility and wages, the model can replicate the size and persistence of the losses in earnings and wages observed in the data. We find that the loss of a job with a more productive employer is the primary driver of the cumulative wage losses following displacement (about 50 percent), followed by the loss of firm-specific human capital (about 30 percent).

     
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    Weitere Identifier:
    hdl: 10419/272856
    Schriftenreihe: Staff reports / Federal Reserve Bank of New York ; no. 1043 (December 2022)
    Schlagworte: Kündigung; Verdienstausfall; Qualifikation; Humankapital; Arbeitsuche; Arbeitsmobilität; Arbeitsmarkttheorie; Strukturmodell; Deutschland; job loss; on-the-job search; human capital
    Umfang: 1 Online-Ressource (circa 50 Seiten), Illustrationen
  5. Non-wage job values and implications for inequality
    Autor*in: Lehmann, Tobias
    Erschienen: December 2023
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    I study inequality in job values, both in terms of wages and non-wage values, in Austria over the period 1996 to 2011. I show that differences in non-wage job value between firms are non-parametrically identified from data on worker flows and wage... mehr

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    I study inequality in job values, both in terms of wages and non-wage values, in Austria over the period 1996 to 2011. I show that differences in non-wage job value between firms are non-parametrically identified from data on worker flows and wage differentials. Intuitively, firms with high non-wage value attract workers without paying a wage premium. I study the distribution of job value among workers and find a positive correlation between wage and non-wage value. Inequality in job value is thus considerably greater than wage inequality, reflected in the standard deviation of job value being more than twice as large as the standard deviation of wage. Job value inequality increases between 1996 and 2011, although wage inequality remains constant. An important reason is that, over time, dispersion of rents offered by firms increases, while compensating differentials lose importance.

     
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    hdl: 10419/282790
    Schriftenreihe: Discussion paper series / IZA ; no. 16663
    Schlagworte: inequality; amenities; worker heterogeneity; firm heterogeneity; on-the-job search; wage dispersion; matched employer-employee data
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  6. Matching through search channels
    Autor*in: Carrillo-Tudela, Carlos; Kaas, Leo; Lochner, Benjamin
    Erschienen: November 2023
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    Firms and workers predominately match via job postings, networks of personal contacts or the public employment agency, all of which help to ameliorate labor market frictions. In this paper we investigate the extent to which these search channels have... mehr

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    Firms and workers predominately match via job postings, networks of personal contacts or the public employment agency, all of which help to ameliorate labor market frictions. In this paper we investigate the extent to which these search channels have differential effects on labor market outcomes. Using novel linked survey-administrative data we document that (i) low-wage firms and low-wage workers are more likely to match via networks or the public agency, while high-wage firms and high-wage workers succeed more often via job postings; (ii) job postings help firms the most in poaching and attracting high-wage workers and help workers the most in climbing the job ladder. To evaluate the implications of these findings for employment, wages and labor market sorting, we structurally estimate an equilibrium job ladder model featuring two-sided heterogeneity, multiple search channels and endogenous recruitment effort. The estimation reveals that networks are the most cost-effective channel, allowing firms to hire quickly, yet attracting workers of lower average ability. Job postings are the most costly channel, facilitate hiring workers of higher ability, and matter most for worker-firm sorting. Although the public employment agency provides the lowest hiring probability, its removal has sizeable consequences, with aggregate employment declining by at least 1.4 percent and rising bottom wage inequality.

     
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    hdl: 10419/282710
    Schriftenreihe: Discussion paper series / IZA ; no. 16583
    Schlagworte: search channels; on-the-job search; recruitment effort; sorting; wage dispersion
    Umfang: 1 Online-Ressource (circa 72 Seiten), Illustrationen
  7. Matching through search channels
    Autor*in: Carrillo-Tudela, Carlos; Kaas, Leo; Lochner, Benjamin
    Erschienen: November 2023
    Verlag:  CESifo, Munich, Germany

    Firms and workers predominately match via job postings, networks of personal contacts or the public employment agency, all of which help to ameliorate labor market frictions. In this paper we investigate the extent to which these search channels have... mehr

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    DS 63
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    Firms and workers predominately match via job postings, networks of personal contacts or the public employment agency, all of which help to ameliorate labor market frictions. In this paper we investigate the extent to which these search channels have differential effects on labor market outcomes. Using novel linked survey-administrative data we document that (i) low-wage firms and low-wage workers are more likely to match via networks or the public agency, while high-wage firms and high-wage workers succeed more often via job postings; (ii) job postings help firms the most in poaching and attracting high-wage workers and help workers the most in climbing the job ladder. To evaluate the implications of these findings for employment, wages and labor market sorting, we structurally estimate an equilibrium job ladder model featuring two-sided heterogeneity, multiple search channels and endogenous recruitment effort. The estimation reveals that networks are the most cost-effective channel, allowing firms to hire quickly, yet attracting workers of lower average ability. Job postings are the most costly channel, facilitate hiring workers of higher ability, and matter most for worker-firm sorting. Although the public employment agency provides the lowest hiring probability, its removal has sizeable consequences, with aggregate employment declining by at least 1.4 percent and rising bottom wage inequality.

     
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    Weitere Identifier:
    hdl: 10419/282449
    Schriftenreihe: CESifo working papers ; 10761 (2023)
    Schlagworte: search channels; on-the-job search; recruitment effort; sorting wage dispersion
    Umfang: 1 Online-Ressource (circa 72 Seiten), Illustrationen
  8. On-the-job wage dynamics
    Autor*in: Smith, Eric
    Erschienen: November 2023
    Verlag:  CESifo, Munich, Germany

    This paper assesses wage setting and wage dynamics in a search and matching framework where (i) workers and firms on occasion meet multilaterally; (ii) workers can recall previous encounters with firms; and (iii) firms cannot commit to future wages... mehr

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    This paper assesses wage setting and wage dynamics in a search and matching framework where (i) workers and firms on occasion meet multilaterally; (ii) workers can recall previous encounters with firms; and (iii) firms cannot commit to future wages and workers cannot commit to not searching on the job. The resulting progression of wages (from firms paying just enough to keep their workers) yields a compensation structure consistent with well established but difficult to reconcile observations on pay dynamics within jobs at firms. Along with wage tenure effects, serial correlation in wage changes and wage growth are negatively correlated with initial wages.

     
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    hdl: 10419/282476
    Schriftenreihe: CESifo working papers ; 10788 (2023)
    Schlagworte: wage dynamics; stock-flow matching; on-the-job search; no commitment
    Umfang: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  9. There and back again
    women's marginal commuting costs
    Autor*in: Bergemann, Annette; Brunow, Stephan; Stockton, Isabel
    Erschienen: March 2024
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    We estimate female and male workers' marginal willingness to pay to reduce commuting distance in Germany, using a partial-equilibrium model of job search with non-wage job attributes. Commuting costs have implications not just for congestion policy,... mehr

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    We estimate female and male workers' marginal willingness to pay to reduce commuting distance in Germany, using a partial-equilibrium model of job search with non-wage job attributes. Commuting costs have implications not just for congestion policy, spatial planning and transport infrastructure provision, but are also relevant to our understanding of gender differences in labour market biographies. For estimation, we use a stratified partial likelihood model on a large administrative dataset for West Germany to flexibly account for both unobserved individual heterogeneity and changes dependent on wages and children. We find that an average female childless worker is willing to give up daily €0.27 per kilometre (0.4% of the daily wage) to reduce commuting distance at the margin. The average men's marginal willingness to pay is similar to childless women's over a large range of wages. However, women's marginal willingness to pay more than doubles after the birth of a child contributing substantially to the motherhood wage gap. A married mixed-sex couple's sample indicates that husbands try to avoid commuting shorter distances than their wives.

     
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    hdl: 10419/295913
    Schriftenreihe: Discussion paper series / IZA ; no. 16890
    Schlagworte: commuting; marginal willingness to pay for job attributes; on-the-job search; Cox relative risk model; partial likelihood estimation; gender and parenthood in job search models; heterogeneity in job mobility; gender wage gap
    Umfang: 1 Online-Ressource (circa 69 Seiten), Illustrationen
  10. Job dispersion and compensating wage differentials
    Autor*in: Sullivan, Paul; To, Ted
    Erschienen: 2013

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    Schriftenreihe: BLS working paper ; 469
    Schlagworte: compensating wage differential; theory of equalizing differences; revealed preference; on-the-job search
    Umfang: Online-Ressource (38 S.), graph. Darst.
  11. There and back again
    women's marginal commuting costs
    Autor*in: Bergemann, Annette; Brunow, Stephan; Stockton, Isabel
    Erschienen: [2024]
    Verlag:  Institute for Fiscal Studies, [London]

    We estimate female and male workers' marginal willingness to pay to reduce commuting distance in Germany, using a partial-equilibrium model of job search with non-wage job attributes. Commuting costs have implications not just for congestion policy,... mehr

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    We estimate female and male workers' marginal willingness to pay to reduce commuting distance in Germany, using a partial-equilibrium model of job search with non-wage job attributes. Commuting costs have implications not just for congestion policy, spatial planning and transport infrastructure provision, but are also relevant to our understanding of gender differences in labour market biographies. For estimation, we use a stratified partial likelihood model on a large administrative dataset for West Germany to flexibly account for both unobserved individual heterogeneity and changes dependent on wages and children. We find that an average female childless worker is willing to give up daily e0.27 per kilometre (0.4% of the daily wage) to reduce commuting distance at the margin. The average men's marginal willingness to pay is similar to childless women's over a large range of wages. However, women's marginal willingness to pay more than doubles after the birth of a child contributing substantially to the motherhood wage gap. A married mixed-sex couple's sample indicates that husbands try to avoid commuting shorter distances than their wives.

     
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    Schriftenreihe: Working paper / lnstitute for Fiscal Studies ; 24, 10
    Schlagworte: Commuting; marginal willingness to pay for job attributes; on-the-job search; Cox relative risk model; partial likelihood estimation; gender and parenthood in job search models; heterogeneity in job mobility; gender wage gap
    Umfang: 1 Online-Ressource (circa 68 Seiten), Illustrationen
  12. Employment protection, job insecurity, and job mobility
    Autor*in: Bertoni, Marco; Chinetti, Simone; Nisticò, Roberto
    Erschienen: December 2023
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    This study leverages the Italian Jobs Act reform as a natural experiment to examine the impact of reduced employment protection on job insecurity and job mobility. The reform significantly lowered protection for open-ended contract workers in large... mehr

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    This study leverages the Italian Jobs Act reform as a natural experiment to examine the impact of reduced employment protection on job insecurity and job mobility. The reform significantly lowered protection for open-ended contract workers in large firms hired after March 7, 2015, and introduced a sharp discontinuity in severance pay at 2-year tenure. Treated employees exhibit increased fear of job loss and higher termination rates. The higher job insecurity prompts workers in low-pay sectors and in low-quality firms to actively pursue job mobility, transitioning towards higher-paying positions. Conversely, workers in high-paying sectors respond by intensifying their efforts to secure their existing jobs. Crucially, all effects disappear for workers above the 2-year tenure threshold, when they become entitled to a 50% higher severance pay. These findings emphasize a complex trade-off behind the design of employment protection systems, as addressing early-stage insecurity with tailored social insurance may counteract upward mobility effects.

     
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    hdl: 10419/282774
    Schriftenreihe: Discussion paper series / IZA ; no. 16647
    Schlagworte: employment protection; job insecurity; job mobility; on-the-job search
    Umfang: 1 Online-Ressource (circa 63 Seiten), Illustrationen