Product market deregulation and the U.S. employment miracle

We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matchingmodel with monopolistic competition in the goods market and individual wage bargaining.Product market competition affects unemployment by two channels: the output expansion effect and a countervailing effect due to a hiring externality. Competition is then linked to barriers to entry. We calibrate the model to US data and perform a policy experiment to assess whether the decrease in trend unemployment during the 1980 s and 1990 s could be attributed to product market deregulation. Our quantitative analysis suggests that under individual bargaining, a decrease of less than two tenths of a percentage point of unemployment rates can be attributed to product market deregulation, a surprisingly small amount.

Body size, activity, employment and wages in Europe: A first approach

This paper examines the associations between obesity, employment status and wages for several European countries. Our results provide weak evidence that obese workers are more likely to be unemployed or tend to be more segregated in self-employment jobs than their non-obese counterparts. We also find difficult to detect statistically significant relationships between obesity and wages. As previously reported in the literature, the association between obesity, unemployment and wages seems to be different for men and women. Moreover, heterogeneity is also found across countries. Such heterogeneity can be somewhat explained by some labor market institutions, such as the collective bargaining coverage and the employer-provided health insurance.

Educational opportunity and the college premium

Since World War II, the United States government has made improved accessto higher education a priority. This e¤ort has substantially increasedthe number of people who complete college. We show that by reducing theeffective interest rate on borrowing for education, such policies canactually increase the gap in wages between those with a college educationand those without. The mechanism that drives our results is the signaling role of education first explored by Spence (1973). We argue that financialconstraints on education reduce the value of education as a signal. Wesolve for the reduced form relationship between the interest rate and thewage premium in the steady state of a dynamic asymmetric information model.In addition, we discuss evidence of decreases in borrowing costs for educationfinancing in the U.S.

Organizational capital and employment fluctuations

In this paper I present a model in which production requires two types of labor inputs: regular productive tasks and organizational capital, which is accumulated by workers performing organizational tasks. By allocating more workers from organizational to productive tasks, firms can temporarily increase production without hiring. The availability of this intensive margin of labor adjustment, in combination with adjustment costs along the extensive margin (search frictions, firing costs, training costs), makes it optimal to delay employment adjustments. Simulations indicate that this mechanism is quantitatively important even if only a small fraction of workers perform organizational tasks, and explains why the hiring rate is persistent and why employment is slow to recover after the end of a recession.

Effects of employment protection and product market regulations on the Italian labor market

Labor market regulations have often being blamed for high and persistentunemployment in Europe, but evidence on their impact remains mixed. Morerecently, attention has turned to the impact of product market regulationson employment growth. This paper analyzes how labor and product marketregulations interact to affect turnover and employment. We present a matchingmodel which illustrates how barriers to entry in the product market mitigatethe impact of labor market deregulation. We, then, use the Italian SocialSecurity employer-employee panel to study the interaction between barriersto entry and dismissal costs. We exploit the fact that costs for unjustdismissals in Italy increased for firms below 15 employees relative to biggerfirms after 1990. We find that the increase in dismissal costs after 1990decreased accessions and separations in small relative to big firms,especially for women. Moreover, consistent with our model, we find evidencethat the increase in dismissal costs had smaller effects on turnover for womenin sectors faced with strict product market regulations.

The political economy of employment protection

This paper develops a model of job creation and job destruction in agrowing economy with embodied technical progress, that we use toanalyze the political support for employment protection legislationssuch as the ones that are observed in most European countries.We analyze the possibility of Condorcet cycles due to the fact thatworkers about to become unemployed prefer both an increase and areduction in firing costs over the status quo. Despite this problem, we show the existence of local, and sometimes global majority winners.In voting in favour of employment protection, incumbent employeestrade off lower living standards (because employment protectionmaintains workers in less productive activities) against longer job duration. We show that the gains from, and consequently the politicalsupport for employment protection (as defined by maximunjob tenure) are larger, the lower the rate of creative destruction and the largerthe worker's bargaining power. Numerical simulations suggest a hump-shaped response of firing costs to these variables, as well as negative impact of exogeneous turnover on employment protection.

Financing constraints and fixed-term employment contracts

This paper studies the interactions between financing constraints and theemployment decisions of firms when both fixed-term and permanent employmentcontracts are available. We first develop a dynamic model that shows theeffects of financing constraints and firing costs on employment decisions. Oncecalibrated, the model shows that financially constrained firms tend to use moreintensely fixed term workers, and to make them absorb a larger fraction of thetotal employment volatility than financially unconstrained firms do. We testand confirm the predictions of the model on a unique panel data of Italian manufacturingfirms with detailed information about the type of workers employedby the firms and about firm financing constraints.

Modelling state dependence and feedback effects between poverty, employment and parental home emancipation among European youth

Youth is one of the phases in the life-cycle when some of the most decisivelife transitions take place. Entering the labour market or leaving parentalhome are events with important consequences for the economic well-beingof young adults. In this paper, the interrelationship between employment,residential emancipation and poverty dynamics is studied for eight Europeancountries by means of an econometric model with feedback effects. Resultsshow that youth poverty genuine state dependence is positive and highly significant.Evidence proves there is a strong causal effect between poverty andleaving home in Scandinavian countries, however, time in economic hardshipdoes not last long. In Southern Europe, instead, youth tend to leave theirparental home much later in order to avoid falling into a poverty state that ismore persistent. Past poverty has negative consequences on the likelihood ofemployment.

Rain and the democratic window of opportunity

According to the economic approach to politicaltransitions, transitory negative economic shocks can open a windowof opportunity for democratic improvement. Testing the theoryrequires a source of transitory shocks to the aggregate economy. Weuse rainfall shocks in Sub-Saharan African countries and find thatnegative rainfall shocks are followed by significant improvement indemocratic institutions. Instrumental variables estimates indicate thatfollowing a transitory negative income shock of 1 percent,democracy scores improve by 0.9 percentage points and theprobability of a democratic transition increases by 1.3 percentagepoints.

Employment protection, international specialization and innovation

We develop a model to analyse the implications of firing costs on incentivesfor R&D and international specialization. The Key idea is paying the firingcost, the country with a rigid labor market will tend to produce relativelysecure goods, at a late stage of their product life cycle.Under international trade, an international product cycle emerges where,roughly, new goods are first produced in the low firing cost country willspecialize in 'secondary innovations', that is, improvements in existinggoods, while the low firing cost country will more specialize in 'primaryinnovation', that is, invention of new goods.

Intangible Capital: An opportunity for PhD students and junior researchers

El objetivo de esta editorial es exponer los hitos más importantes acontecidos durante el año 2008, en el que se publicó el volumen 4, los datos de visibilidad y por primera vez los resultados de una encuesta de satisfacción realizada a los autores que han enviado durante 2008 alguna publicación a evaluación. Además, en el anexo se expone la relación de revisores y miembros del Editorial Board que han hecho posible el cuarto volumen de Intangible Capital. También se informa sobre los aspectos que indican el principio de una consolidación de la revista, y la importancia de mantener los principios básicos que dieron origen a esta publicación. Concluimos la editorial animando a directores de tesis, estudiantes de doctorado y autores noveles a enviar sus primeros trabajos a evaluación.The aim of this editorial is to present the most important Intangible Capital milestones of 2008. During the last year, the intangible Capital published its 4th volume, together with information regarding the journal’s visibility and the first results of a satisfaction survey conducted among the authors, who submitted a paper for evaluation. In addition, the annex presents the list of reviewers and the Editorial Board members who have enabled the publication of the fourth volume of the Intangible Capital. This editorial also provides information regarding the aspects that indicate the beginning of the journal’s consolidation, and the importance of maintaining the basic principles that gave rise to this publication. The editorial concludes by encouraging PhD advisors, doctoral students and junior researchers the Intangible Capital a potential outlet for their work.

Guía Managgend: Indicadores de gestión y de género para la completividad y crecimiento de los sectores públicos y privado de Cataluña en una sociedad del conocimiento compleja

La actual crisis económica, del modelo de producción y de las gravesconsecuencias que está teniendo en el tejido industrial, productivo,económico, de consumo, de diferentes sectores, así como la pérdidade competitividad y el descenso de nuestra productividad como casi lamás baja de Europa, nos lleva a buscar soluciones y alternativas en lagestión empresarial y en la dirección de las organizaciones públicas yprivadas, como uno de los factores estratégicos que podrían ayudar a colaborar a la salida de la crisis.

Dones a la ciència i a la universitat: la construcció de la identitat docent i investigadora en contextos de desigualtat

[cat] Aquest treball recull el procés i els resultats de la recerca "Dones a la Ciència i a la Universitat: la contribució de la identitat docent i investigadora en contextos de desigualtat" (2007 RDG 00001)finançada per l'Agència de Gestió d'Ajuts Universitaris i de Recerca (AGAUR) en la convocatòria d'ajuts per a l'estudi de desigualtats originades per motius de gènere en l'àmbit científic i universitari (RDG) per l'any 2007. La finalitat d'aquest projecte ha estat explorar i reconstruirl'experiència personal i professional de tres generacions de dones en el procés de construcció de la seva identitat com a docents, investigadores i gestores. La forma d'assolir aquesta finalitat ha estatl'elaboració de 8 històries de vida professional per tal de comprendre la relació entre les seves trajectòries i les condicions de la seva feina i esbrinar com es van convertir en la mena de donesprofessores, investigadores o gestores que ara són; així com les relacions entre les experiències personals i el desenvolupament de les seves trajectòries professionals. En aquest procés s'han posat en evidència les estratègies d'adaptació, resistència i creació que les dones desenvolupen enla seva interacció amb el context de la docència, la recerca i la gestió, les formes de violència simbòlica que experimenten, i els canvis que s'han produït al centres de recerca i les universitats catalanes des de la perspectiva de gènere en els darrers trenta anys.

Guia Managgend: Indicadors de gestió i de gènere per a la competitivitat i creixement dels sectors públic i privat de Catalunya en una societat del coneixement complexa.

L'actual crisi econòmica, del model de producció i les greus conseqüències que està tenint en el teixit industrial, productiu, econòmic, de consum, de diferents sectors, així com la pèrdua de competitivitat i el descens de la nostra productivitat com quasi la més baixa d'Europa, ens porta a cercar solucions i alternatives en la gestió empresarial i a la direcció de les organitzacions públiques i privades,com un dels factors estratègics que podrien ajudar a col·laborar a la sortida de la crisi.

Dones a la ciència i a la universitat: la construcció de la identitat docent i investigadora en contextos de desigualtat

[cat] Aquest treball recull el procés i els resultats de la recerca "Dones a la Ciència i a la Universitat: la contribució de la identitat docent i investigadora en contextos de desigualtat" (2007 RDG 00001)finançada per l'Agència de Gestió d'Ajuts Universitaris i de Recerca (AGAUR) en la convocatòria d'ajuts per a l'estudi de desigualtats originades per motius de gènere en l'àmbit científic i universitari (RDG) per l'any 2007. La finalitat d'aquest projecte ha estat explorar i reconstruirl'experiència personal i professional de tres generacions de dones en el procés de construcció de la seva identitat com a docents, investigadores i gestores. La forma d'assolir aquesta finalitat ha estatl'elaboració de 8 històries de vida professional per tal de comprendre la relació entre les seves trajectòries i les condicions de la seva feina i esbrinar com es van convertir en la mena de donesprofessores, investigadores o gestores que ara són; així com les relacions entre les experiències personals i el desenvolupament de les seves trajectòries professionals. En aquest procés s'han posat en evidència les estratègies d'adaptació, resistència i creació que les dones desenvolupen enla seva interacció amb el context de la docència, la recerca i la gestió, les formes de violència simbòlica que experimenten, i els canvis que s'han produït al centres de recerca i les universitats catalanes des de la perspectiva de gènere en els darrers trenta anys.