Individual Labour Market Outcomes Research Articles

Literature review of comparative school-to-work research: how institutional settings shape individual labour market outcomes

Comparative school-to-work research has long emphasised the role of institutions in shaping youth labour market integration. This paper provides an overview of this research stream, consisting of four main sections. The first section introduces a variety of labour market outcomes of young graduates within Europe and identifies country clusters with higher and lower outcomes; this empirical evidence has so far remained limited in the multivariate oriented research stream. The second section links these labour market outcomes to the institutional settings of the education systems prevalent in the country clusters. By considering a wide country sample, it introduces a reliable country classification of transition regimes (along the OLM–ILM continuum), which has so far been partly inconclusive in research. The third section links labour market outcomes in turn to labour market institutions of the country clusters. This section emphasizes why labour market institutions drive only particular individual outcomes. Finally, the fourth section connects the previous three: it describes how certain institutional complementarities affect the youth labour market integration in the identified European country clusters. The review further identifies theoretical inconclusiveness or data-related desiderata, for which recommendations and solutions are proposed. The paper thus aims to assist both familiar and unfamiliar researchers to access the research stream by offering a comprehensive introduction and clear country classifications, linking research streams, and providing solutions to identified issues.

Moving motivated by work or proximity to family and labour market outcomes in the Netherlands

The classical human-capital model of migration posits that internal migration should lead to improved individual labour market outcomes. However, later empirical and theoretical work has emphasised that the outcomes of migration may be positive for some, but negative for others, depending on, for example, gender and the motive for moving. We investigate the labour market outcomes after moves motivated by work, moves motivated by proximity to family, and moves motivated by both work and family at the same time, compared with not moving. We use data from the Netherlands’ Housing Surveys of 2006, 2009, 2012, 2015, and 2018 matched with register data (N ~ 350,000 person-years). We find that men’s and women’s moves for work, and moves for both family and work, are positively associated with outcomes in terms of individual income, employment, and labour supply (hours worked). We do not find such positive associations for moves motivated by family proximity only, but we hardly find negative associations. We do not replicate the finding of previous research for Sweden that moves for family proximity were associated with an increased likelihood of transitions out of unemployment. However, we find some evidence that women’s moves motivated by both work and family proximity are associated with an increase in labour supply.

Impact of the COVID-19 pandemic on employment and inequalities: a systematic review of international evidence and critical appraisal of statistical methods.

To assess the impact of the COVID-19 pandemic on individual labour market outcomes and how these vary over time and between different groups of individuals. Searches were conducted using Medline, Scopus and EconLit. Grey literature searches used Google Scholar and Econpapers. Study quality was assessed using the risk of bias in non-randomised studies of exposure tool (ROBINS-E), accompanied by a directed acyclic graph (DAG) to identify relevant mediators, moderators and confounders. A total of 85 studies (77 peer-reviewed articles, 8 working papers) were included. The ROBINS-E showed that the overall risk of bias varied between studies from low (n = 14), moderate (n = 56) to serious (n = 15). Studies also varied in terms of outcome measures, study designs and the academic disciplines of researchers. Generally, studies using data collected before and during the pandemic showed large negative effects on employment, working hours and income. Studies that assessed moderators (e.g. by industry, occupation, age, gender, race and country of birth) indicated the pandemic has likely worsened pre-existing disparities in health and work. Generally, women, less educated, non-whites and young workers were affected the most, perhaps due to their jobs involving high levels of personal contact (e.g. hospitality, sales and entertainment) and being less amenable to remote working. The DAG highlighted methodological challenges in drawing robust inferences about COVID-19's impact on employment, including the lack of an unexposed control group. The COVID-19 health crisis caused unanticipated and unprecedented changes to employment opportunities around the world, with potential long-term health consequences. Further research should investigate the longer-term impact of COVID-19, with greater attention given to low- and middle-income countries. Our study provides guidance on the design and critical appraisal of future studies.

Affordable Housing and Individual Labor Market Outcomes

Affordable Housing and Individual Labor Market Outcomes

Gender identity, labor market outcomes, and socioeconomic status: Evidence from Chile

This paper provides the first evidence of differential labor market and socioeconomic outcomes for non-cisgender individuals in Latin America using nationally representative data. Very little is known about gender diverse populations in the developing world. Recent population-based data from the 2017 Chilean National Socioeconomic Characterization Survey allows for the identification of over 1800 non-cisgender adults (i.e., individuals whose reported gender identity differs from their sex assigned at birth.) I examine labor market outcomes and socioeconomic status in the context of gender identity, while controlling for relevant individual- and household-level characteristics. I find that non-cisgender individuals who were assigned male at birth are less likely to be employed, and more likely to be living in a household that is multidimensionally poor when compared to otherwise similar cisgender men. Non-cisgender individuals who were assigned female at birth are less likely to be employed, work fewer labor hours, report lower labor incomes, and are more likely to work in the informal sector relative to otherwise similar cisgender men.

Household Liquidity Constraints and Labor Market Outcomes: Evidence from a Danish Mortgage Reform

ABSTRACTWe study the causal effect of liquidity constraints on individual labor market outcomes by exploiting the 1992 mortgage reform in Denmark, which for the first time allowed homeowners to borrow against housing equity for nonhousing purposes. Following the reform, liquidity‐constrained homeowners increased debt levels and had higher earnings growth and lower employment rates. The option to borrow against housing equity enabled liquidity‐constrained individuals to move to high‐wage jobs and invest in valuable human and physical capital. The results imply that relaxing household liquidity constraints during recessions can create better job matches, potentially increasing earnings and output in the longer run.

The consequences of job search monitoring for the long-term unemployed: Disability instead of employment?

We study the effect of job search monitoring (JSM) on individual labor market outcomes of the long-term unemployed. Exploiting the implementation of a JSM program targeted at jobseekers under the age of 49, we set up a regression discontinuity design that credibly identifies the program’s causal effect on unemployment, employment, and disability insurance (DI) participation and participation in other social welfare programs within a three-year period. We find that JSM increases exits from unemployment to DI without affecting transitions into employment or other social welfare programs. We further find that the effect of JSM on DI materializes before any sanction can be imposed and monitored individuals are still 10 percentage points more likely to be on DI three years after the start of monitoring. Ultimately, exploring fiscal implications reveals that the decrease in unemployment transfers as a result of JSM is entirely offset by the increase in DI transfers.

‘No one size fits all’: Diverse impacts of Temporary Protected Status on Haitians and Hondurans

We examine how Temporary Protected Status (TPS) has impacted the individual labor market outcomes and educational attainment of Haitian and Honduran beneficiaries, as well as their households’ earnings, poverty exposure, and food stamp receipt. We find evidence of TPS assisting Haitian migrants in all those respects, but not Honduran migrants. Differences in households’ linguistic assimilation could be partially responsible for the distinct program impact across nationalities.

Impact of COVID on Employment and Earnings of SNAP Employment and Training Participants

ABSTRACT COVID-19 has adversely affected the employment and earnings of many US workers, but little is known about its effects among low-income workers. We use Unemployed Insurance data, SNAP administrative records and longitudinal survey data collected in 10 states before and during the pandemic, along with innovative counterfactual modeling methods, to estimate its effect on labor market outcomes of individuals enrolled in the Supplemental Nutrition Assistance Program Employment and Training program. We find that COVID-19 decreased average quarterly employment by 13% and average quarterly earnings by 33%. We also find differences across subgroups defined by demographic, economic, and geographic characteristics.

Diverse effects of shorter potential unemployment benefit duration on labor market outcomes in Germany

AbstractThis paper explores diverse effects of an unemployment benefit (UB) reform in Germany on labor market outcomes of individuals with health impairment. The reform induced substantial reductions in potential duration of regular UB for older workers, which is exploited in a difference‐in‐differences setting. The results provide evidence for a decrease in days in UB, an increase in days in employment, and an increase in days in unemployment assistance. The effects on UB and employment are smaller and the effects on unemployment assistance are larger for unemployed and non‐employed individuals than for individuals who were employed before medical rehabilitations.

Potential duration of unemployment benefits and labor market outcomes for older workers with health impairments in Germany

AbstractThis research note estimates the causal effects of a cut in the potential duration of regular unemployment benefits for older workers in Germany on the labor market outcomes of individuals with health impairments. The analyzed reform is a natural experiment that allows a difference‐in‐differences strategy with treatment intensity. The results provide evidence for a significant decrease in the number of days in regular unemployment benefits and an increase in the number of days in employment. However, the results also suggest a significant increase in the number of days in unemployment (social) assistance, which are granted upon exhaustion of regular unemployment benefits.

Internal Migration, Living Close to Family, and Individual Labour Market Outcomes in Spain

Migration is often viewed as a way to enhance occupational careers. However, particularly in Mediterranean countries, labour market outcomes may also depend on local family resources. We investigate how men’s and women’s labour market outcomes differ between (1) those who migrated and those who did not; and (2) those who live close to family and those who live farther away. Our main contributions are the investigation of the association between migration and labour market outcomes in a different context than the more commonly studied Northern and Western European countries and the United States, and of the role of living close to family in labour market outcomes. We used a sample of labour market participants from the “Attitudes and Expectations About Mobility” survey, conducted in Spain in 2019. Our results show that the likelihood of being a professional is greater for women who migrated than for those who did not, and that the likelihood of being unemployed or in a temporary job is lower for women who live close to family than for those who do not, but neither association was found for men. The finding for living close to family is in line with the notion that nearby family may protect women in particular from precarious labour market positions. The finding for migration differs from previous findings for Northern and Western Europe and the United States, which indicate that migration is beneficial to men in particular. This difference might be specific to a low-migration context, but data limitations prevent firm conclusions.

New digital technologies and heterogeneous wage and employment dynamics in the United States: Evidence from individual-level data

We analyze heterogeneous effects of new digital technologies on individual-level wage and employment dynamics in the United States from 2011-2018. To this end, we employ four digital technology measures from recent literature: computerization probabilities of occupations, occupational impacts of artificial intelligence, and the suitability of tasks for machine learning and their within-occupation variance. Based on CPS and ASEC panel data, the results indicate that labor-displacing digital technologies are associated with slower wage growth and higher probabilities of switching one's occupation and becoming non-employed. In contrast, labor-reinstating digital technologies improve individual labor market outcomes. Workers with high levels of formal education are most affected by the new generation of digital technologies.

Who takes the hit? Gender differences in employment outcomes after disasters

AbstractWe estimate the individual labor market outcomes in Indonesia using historical data to isolate the plausibly exogenous variation in local labor market conditions due to unexpected natural hazards. We find that men substitute labor away when there are more unanticipated disasters while women work more. These gender differences in employment elasticities are heterogeneous by land ownership and education. Results imply that policies targeting women, including more flexible workplace arrangements and incentives to finishing secondary school, may be necessary to allow women to substitute away from work when the gains from participation are low.

Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans

I present evidence on the relationship between broadband pricing and labor market outcomes for low-income individuals. Specifically, I estimate the effects of a Comcast service providing discounted broadband to qualifying low-income families. I use a triple differences strategy exploiting geographic variation in Comcast coverage, individual variation in eligibility, and temporal variation pre- and postlaunch. Local program availability increased employment rates and earnings of eligible individuals, driven by greater labor force participation and decreased probability of unemployment. Internet use increased substantially where the program was available. (JEL I32, J22, J31, L82, L86)

Individual labor market effects of local public expenditures on sports

By merging administrative data on public finances of all municipalities in Germany with individual data from the German Socio-Economic Panel, we explore whether local public expenditures on sports facilities influences individual labor market outcomes. Our identification strategy follows a selection-on-observables approach and exploits the panel structure of the data covering 12 years between 2001 and 2012. The results of our matching estimations suggest that both women and men exposed to high annual expenditure levels (i.e. €31–€85 per capita) over 5 years, obtain approximately €150 of additional household net income on average. However, this income effect is captured by earning gains for men rather than for women living in the household. Additional analysis suggests, that these gender differences, which can also be observed in terms of working time, hourly wage and employment status, appear plausible since women in the age cohort under consideration are less likely to engage in sports in general, and in any of the publicly funded sports facilities in particular. Moreover, improved well-being and health are possible mechanisms through which the positive labor market effects for men may unfold.

Regional Coronavirus Hotspots During the COVID-19 Outbreak in the Netherlands

We explore the impact of COVID-19 hotspots and regional lockdowns on the Dutch labour market during the outbreak of COVID-19. Using weekly administrative panel microdata for 50 per cent of Dutch employees until the end of March 2020, we study whether individual labour market outcomes, as measured by employment, working hours and hourly wages, were more strongly affected in provinces where COVID-19 confirmed cases, hospitalizations and mortality were relatively high. The evidence suggests that labour market outcomes were negatively affected in all regions and local higher virus case numbers did not reinforce this decline. This suggests that preventive health measures should be at the regional level, isolating hotspots from low-risk areas.

Sick of Your Poor Neighborhood?

Does living in a low-income neighborhood have negative health consequences? We document causal neighborhood effects on health by exploiting a Spatial Dispersal Policy that quasi-randomly resettled refugees across neighborhoods from 1986-1998. The risk of developing a lifestyle related disease before 2018 increased by 5.1 percent for those allocated to the poorest third of neighborhoods compared with those in the richest third of neighborhoods. Our results suggest that interaction with neighbors and the characteristics of the immediate environment are important determinants for health outcomes. Differences in health care access, ethnic networks, and individual labor market outcomes cannot explain our findings.

The Dutch labour market early on in the COVID-19 outbreak: Regional coronavirus hotspots and the national lockdown

We explore the impact of COVID-19 hotspots and regional lockdowns on the Dutch labour market. Using weekly administrative panel microdata for 50 per cent of Dutch employees until the end of March 2020, we study whether individual labour market outcomes, as measured by employment, working hours and hourly wages, were more strongly affected in provinces where COVID-19 confirmed cases, hospitalizations and mortality were relatively high. We do not observe a region-specific impact of COVID-19 on labour market outcomes.The results suggest individual characteristics are more important, including the employee’s age, type of contract and type of job. The evidence suggests that the decline of the labour market was all due to the impacts from the government-enforced lockdown and higher virus case numbers did not reinforce this decline. This suggests that preventive health measures should be at the regional level, isolating hotspots from low-risk areas.

Aerial bombardment and educational attainment

ABSTRACTThis paper provides evidence that the Allied bombing of Vietnam, the longest and heaviest aerial bombardment in history, imposed detrimental ramifications on educational attainment and future labor market outcomes of school-age individuals. By exploiting the plausibly exogenous district-by-cohort variation in bomb destruction under a difference-in-differences framework, we find that an increase in bomb intensity leads to significantly fewer educational years completed and lower future earnings for school-age children exposed to the bombardment. We further show that both the supply-side factors (inadequate school security and the lack of teachers) and the demand-side factors (residential casualties, restricted access to healthcare, damaged properties and increased reliance on welfare assistance) could be potential mechanisms driving the long-term consequences of aerial bombardment. Our findings underline the importance of conflict prevention and post-conflict reconstruction in promoting sustainable development.