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result(s) for
"LABOR SUPPLY"
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Good Jobs, Bad Jobs
2011
Good Jobs, Bad Jobs provides an insightful analysis of how and why precarious employment is gaining ground in the labor market and the role these developments have played in the decline of the middle class. Kalleberg shows that by the 1970s, government deregulation, global competition, and the rise of the service sector gained traction, while institutional protections for workers—such as unions and minimum-wage legislation—weakened. Together, these forces marked the end of postwar security for American workers. The composition of the labor force also changed significantly; the number of dual-earner families increased, as did the share of the workforce comprised of women, non-white, and immigrant workers. Of these groups, blacks, Latinos, and immigrants remain concentrated in the most precarious and low-quality jobs, with educational attainment being the leading indicator of who will earn the highest wages and experience the most job security and highest levels of autonomy and control over their jobs and schedules. Kalleberg demonstrates, however, that building a better safety net—increasing government responsibility for worker health care and retirement, as well as strengthening unions—can go a long way toward redressing the effects of today’s volatile labor market. There is every reason to expect that the growth of precarious jobs—which already make up a significant share of the American job market—will continue. Good Jobs, Bad Jobs deftly shows that the decline in U.S. job quality is not the result of fluctuations in the business cycle, but rather the result of economic restructuring and the disappearance of institutional protections for workers. Only government, employers and labor working together on long-term strategies—including an expanded safety net, strengthened legal protections, and better training opportunities—can help reverse this trend.
Using Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on Earnings
2013
We estimate the impacts of the Earned Income Tax Credit on labor supply using local variation in knowledge about the EITC schedule. We proxy for EITC knowledge in a Zip code with the fraction of individuals who manipulate reported self-employment income to maximize their EITC refund. This measure varies significantly across areas. We exploit changes in EITC eligibility at the birth of a child to estimate labor supply effects. Individuals in high-knowledge areas change wage earnings sharply to obtain larger EITC refunds relative to those in low-knowledge areas. These responses come primarily from intensive-margin earnings increases in the phase-in region.
Journal Article
MONOPSONY IN LABOR MARKETS
2021
When jobs offered by different employers are not perfect substitutes, employers gain wage-setting power; the extent of this power can be captured by the elasticity of labor supply to the firm. The authors collect 1,320 estimates of this parameter from 53 studies. Findings show a prominent discrepancy between estimates of direct elasticity of labor supply to changes in wage (smaller) and the estimates converted from inverse elasticities (larger), suggesting that labor market institutions may rein in a substantial amount of firm wage-setting power. This gap remains after they control for 22 additional variables and use Bayesian Model Averaging and LASSO to address model uncertainty; however, it is less pronounced for studies employing an identification strategy. Furthermore, the authors find strong evidence that implies the literature on direct estimates is prone to selective reporting: Negative estimates of the elasticity of labor supply to the firm tend to be discarded, leading to upward bias in the mean reported estimate. Additionally, they point out several socioeconomic factors that seem to affect the degree of monopsony power.
Journal Article
Global mobility of highly skilled people : multidisciplinary perspectives on self-initiated expatriation
This volume examines self-initiated expatriates (SIEs), the category of highly skilled people whose movement from one country to another is by choice. Although they are not forced to relocate due to work, conflict or natural disaster, their migration pattern is every bit as complex. The book challenges previous theoretical approaches that take for granted a more simplistic view of this population, and advances that mobility of SIEs relates to the expatriates themselves, their conditions and the different structures intervening in their career life course. With their visible increase worldwide, this book positions itself as a nexus for this on-going discussion, while linking self-initiated expatriation to the theoretical landscape of international skilled migration and mobility. Major interests that catch attention are transnational practices, work-related experiences and personal life course, including forms of inequalities in their migration experiences. The book identifies forms and drivers of migratory behaviour and provides an argument concerning the broader processes of mobility and integration. As such, this book constitutes a departure point for future research in terms of theoretical underpinnings and empirical rigor on global highly skilled mobility of SIEs. The collection of empirical case studies offers an insightful analysis for policy makers, concerned stakeholders and organizations to better cope with this form of migration.
Bartik Instruments
2020
The Bartik instrument is formed by interacting local industry shares and national industry growth rates. We show that the typical use of a Bartik instrument assumes a pooled exposure research design, where the shares measure differential exposure to common shocks, and identification is based on exogeneity of the shares. Next, we show how the Bartik instrument weights each of the exposure designs. Finally, we discuss how to assess the plausibility of the research design. We illustrate our results through two applications: estimating the elasticity of labor supply, and estimating the elasticity of substitution between immigrants and natives.
Journal Article
The rise of the robots : technology and the threat of mass unemployment
Intelligent algorithms are already well on their way to making white collar jobs obsolete: travel agents, data-analysts, and paralegals are currently in the firing line. In the near future, doctors, taxi-drivers and ironically even computer programmers are poised to be replaced by 'robots'. Without a radical reassessment of our economic and political structures, we risk the very implosion of the capitalist economy itself ... In The Rise of the Robots, technology expert Martin Ford systematically outlines the achievements of artificial intelligence and uses a wealth of economic data to illustrate the terrifying societal implications. From health and education to finance and technology, his warning is stark-all jobs that are on some level routine are likely to eventually be automated, resulting in the death of traditional careers and a hollowed-out middle class. The robots are coming and we have to decide-now-whether the future will bring prosperity or catastrophe.
Why Are There Still So Many Jobs? The History and Future of Workplace Automation
2015
In this essay, I begin by identifying the reasons that automation has not wiped out a majority of jobs over the decades and centuries. Automation does indeed substitute for labor—as it is typically intended to do. However, automation also complements labor, raises output in ways that leads to higher demand for labor, and interacts with adjustments in labor supply. Journalists and even expert commentators tend to overstate the extent of machine substitution for human labor and ignore the strong complementarities between automation and labor that increase productivity, raise earnings, and augment demand for labor. Changes in technology do alter the types of jobs available and what those jobs pay. In the last few decades, one noticeable change has been a “polarization” of the labor market, in which wage gains went disproportionately to those at the top and at the bottom of the income and skill distribution, not to those in the middle; however, I also argue, this polarization and is unlikely to continue very far into future. The final section of this paper reflects on how recent and future advances in artificial intelligence and robotics should shape our thinking about the likely trajectory of occupational change and employment growth. I argue that the interplay between machine and human comparative advantage allows computers to substitute for workers in performing routine, codifiable tasks while amplifying the comparative advantage of workers in supplying problem-solving skills, adaptability, and creativity.
Journal Article