scholarly journals Increasing the Cost of Informal Workers: Evidence from Mexico

Author(s):  
Brenda Samaniego de la Parra ◽  
León Fernández Bujanda

This paper estimates the effects of increasing the cost of informal jobs on formal firms' and workers' outcomes. We create novel datasets combining administrative records and household surveys data, and exploit exogenous variation in this cost generated by over 480,000 random work-site inspections in Mexico. Increasing the cost of informal jobs at formal firms leads to lower employment growth, lower formal job creation, and higher formal and informal job destruction. For informal workers, inspections increase the probability of being formalized at the inspected firm, but also increase the probability of dissolving the informal match. Transitioning to a formal job due to an inspection increases the probability of being poached to a new, formal job.

Author(s):  
Daniel Crown ◽  
Timothy Wojan ◽  
Anil Rupasingha

Abstract This article estimates the employment spillover effect of high-growth businesses on establishment-level employment growth. We assess whether the impact depends on the rurality of the region, and whether nearby establishments are high-growth businesses themselves. We also estimate the within-industry impact of high-growth establishments (HGEs). The findings show no impact of HGEs on net employment growth, due to equal gross job creation and job destruction on average. However, we find that within the same industry, HGEs contribute to positive net employment growth, with large and nearly equal impacts on existing HGEs across both Metropolitan Statistical Areas regions and non-metro counties.


2016 ◽  
Vol 24 (1) ◽  
pp. 87-103 ◽  
Author(s):  
Rikard H Eriksson ◽  
Emelie Hane-Weijman

Using Swedish longitudinal micro-data, the aim of this paper is to analyse how regional economies respond to crises. This is made possible by linking gross employment flows to the notion of regional resilience. Our findings indicate that despite a steady national employment growth, only the three metropolitan regions have fully recovered from the recession of 1990. Further, we show evidence of high levels of job creation and destruction in both declining and expanding regions and sectors, and that the creation of jobs is mainly attributable to employment growth in incumbent firms, while job destruction is primarily due to exits and micro-plants. Although the geography of resistance to crises and the ability of adaptability in the aftermath vary, our findings suggest that cohesive (i.e., with many skill-related industries) and diverse (i.e., with a high degree of unrelated variety) regions are more resilient over time. We also find that resistance to future shocks (e.g., the 2008 recession) is highly dependent on the resistance to previous crises. In all, this suggests that the long-term evolution of regional economies also influences their future resilience.


ILR Review ◽  
1996 ◽  
Vol 50 (1) ◽  
pp. 17-38 ◽  
Author(s):  
David G. Blanchflower ◽  
Simon M. Burgess

Using data from the Workplace Industrial Relations Surveys of 1980, 1984, and 1990, the authors investigate processes of job creation and job destruction in Britain. They find that rates of employment growth, job creation, and job destruction were higher at the end of the 1980s than at the beginning. Both job creation and job destruction were extremely concentrated: about 50% of each was accounted for by just 4% of continuing establishments. Employment growth was apparently more variable in manufacturing plants than in private service sector workplaces. Some variables negatively related to employment growth were unionization, establishment size, establishment age, and location in the private manufacturing sector (versus private service sector).


ILR Review ◽  
2016 ◽  
Vol 70 (5) ◽  
pp. 1111-1145 ◽  
Author(s):  
David Neumark ◽  
Diego Grijalva

State and federal policymakers grappling with the aftermath of the Great Recession sought ways to spur job creation, in many cases adopting hiring credits to encourage employers to create new jobs. Virtually no evidence is available, however, on the effects of these kinds of counter-recessionary hiring credits, with the only evidence coming from much earlier studies of the federal New Jobs Tax Credit in the 1970s. This article provides evidence on the effects of state hiring credits on job growth. Some specific types of hiring credits—including those targeting the unemployed, those that allow states to recapture credits when job creation goals are not met, and refundable hiring credits—appear to have succeeded in boosting job growth, particularly during the Great Recession period and perhaps also during recessions in general. At the same time, some evidence suggests that these credits can generate much more hiring than net employment growth, consistent with the credits encouraging churning of employees that raises the cost of producing jobs through hiring credits.


2002 ◽  
Author(s):  
Carlos Henrique Leite Corseuil ◽  
Eduardo P. Ribeiro ◽  
Daniel Santos ◽  
Rodrigo Fernando Dias
Keyword(s):  

Author(s):  
Laura Anselmi ◽  
Yiu-Shing Lau ◽  
Matt Sutton ◽  
Anna Everton ◽  
Rob Shaw ◽  
...  

AbstractRisk-adjustment models are used to predict the cost of care for patients based on their observable characteristics, and to derive efficient and equitable budgets based on weighted capitation. Markers based on past care contacts can improve model fit, but their coefficients may be affected by provider variations in diagnostic, treatment and reporting quality. This is problematic when distinguishing need and supply influences on costs is required.We examine the extent of this bias in the national formula for mental health care using administrative records for 43.7 million adults registered with 7746 GP practices in England in 2015. We also illustrate a method to control for provider effects.A linear regression containing a rich set of individual, GP practice and area characteristics, and fixed effects for local health organisations, had goodness-of-fit equal to R2 = 0.007 at person level and R2 = 0.720 at GP practice level. The addition of past care markers changed substantially the coefficients on the other variables and increased the goodness-of-fit to R2 = 0.275 at person level and R2 = 0.815 at GP practice level. The further inclusion of provider effects affected the coefficients on GP practice and area variables and on local health organisation fixed effects, increasing goodness-of-fit at GP practice level to R2 = 0.848.With adequate supply controls, it is possible to estimate coefficients on past care markers that are stable and unbiased. Nonetheless, inconsistent reporting may affect need predictions and penalise populations served by underreporting providers.


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