scholarly journals An empirical exploration of geographic heterogeneities in labor markets informality and minimum wage effects

2021 ◽  
pp. 194-226
Author(s):  
Lucas Ferrero ◽  
Matías Hisgen
Keyword(s):  
Labor Markets ◽  
Minimum Wage ◽  
Educational Levels ◽  
Labor Contract ◽  
Potential Source ◽  
Heterogeneous Effects ◽  
Dual Labor Markets ◽  
Wage Effects ◽  
Sectoral Differences ◽  
The Relationship

Dual labor markets, defined by the existence or not of a formal labor contract, are a widespread feature in developing countries. Part of this duality results from marked asymmetries between relevant groups and categories, given one-size-fits-all regulation. This article proposes an exploration of the relationship between informality and the minimum wage as a potential source of variation for the identification heterogeneous effects between regions in Argentina. The results obtained support the existence of heterogeneities in policy effects between the central and peripheral regions. The distribution of wages and the level of compliance with the associated minimum wage regulations are the main variables of interest; both exhibit differential effects across regions, stronger northern agglomerations. These are robust to various specifications and controls associated with interregional differences (educational levels, size of companies, sectoral differences, among others). Results have important implications given persistent regional backwardness, and heterogeneities in terms of the workings of both markets and related policies.

scholarly journals Minimum Wages in Monopsonistic Labor Markets

2020 ◽  
Author(s):  
Luis Felipe Munguia Corella
Keyword(s):  
Labor Markets ◽  
Minimum Wage ◽  
Minimum Wages ◽  
Perfect Competition ◽  
External Shocks ◽  
Omitted Variables ◽  
Heterogeneous Effects ◽  
Wage Effects ◽  
Teenage Employment ◽  
The U.S

Over the last 30 years, researchers have disputed the mixed evidence of the effect of the minimum wage on teenage employment in the U.S. Whenever the minimum wage has positive or no effects on employment, they appeal to monopsony models to explain their results. However, very few of these studies have empirically tested whether their results are due to monopsonistic characteristics in the labor markets. In this paper, I estimate the effects of the minimum wage for the U.S. under concentrated labor markets and low-mobility jobs (two variables that measure monopsony), identify heterogeneous effects among different scenarios derived from the monopsony model, and provide a plausible explanation of the mixed results about the minimum wage effects in the literature. My main findings indicate that minimum wages have an elasticity to teenage employment of -0.418 under perfect competition, which is, as expected, much higher than the usual results in the literature. If the monopsony variable is one standard deviation higher than the baseline, it implies a positive change in elasticity between of 0.05. The minimum wage has a positive insignificant effect between 0.04 and 0.29 under full monopsonistic labor markets. The results are consistent among different specifications and controlling for possible external shocks to the monopsony and omitted variables.

Concentration in the Labor Market for Public School Teachers

ILR Review ◽  
1986 ◽  
Vol 39 (4) ◽  
pp. 573-584 ◽  
Author(s):  
James Luizer ◽  
Robert Thornton
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Bachelor's Degree ◽  
Public School Teachers ◽  
Teacher Labor Market ◽  
Teacher Labor Markets ◽  
Wage Effects ◽  
Monopsony Power ◽  
The Relationship ◽  
Teacher Labor

Recent studies that have investigated the relationship between the monopsony power of school districts and teachers' salaries have reached conflicting conclusions. The authors of this paper argue that the discrepancies among previous studies may be due to the arbitrary demarcation of the boundaries of teacher labor markets and the use of faulty measures of monopsony. Using a new procedure for defining teacher labor market boundaries and several alternative indices of concentration, this study finds evidence of monopsonistic activity in local teacher labor markets in Pennsylvania. The monopsony wage effects are small, however, and are present mainly at the mid-to-upper ranges of the bachelor's degree salary scale.

scholarly journals Minimum wages in monopsonistic labor markets

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Luis F. Munguía Corella
Keyword(s):  
United States ◽  
Labor Markets ◽  
Minimum Wage ◽  
The United States ◽  
Minimum Wages ◽  
Perfect Competition ◽  
External Shocks ◽  
Omitted Variables ◽  
Heterogeneous Effects ◽  
Teenage Employment

AbstractOver the last 30 years, researchers have disputed the mixed evidence of the effect of the minimum wage on teenage employment in the United States. Whenever the minimum wage has positive or no effects on employment, they appeal to monopsony models to explain their results. However, very few of these studies have empirically tested whether their results are due to monopsonistic characteristics in the labor markets. In this article, I estimate the effects of the minimum wage for the United States under concentrated labor markets and low-mobility jobs (two variables that measure monopsony), identify heterogeneous effects among different scenarios derived from the monopsony model, and provide a plausible explanation of the mixed results about the minimum wage effects in the literature. My main findings indicate that minimum wages have an elasticity to teenage employment of −0.418 under perfect competition, which is, as expected, much higher than the usual results in the literature. If the monopsony variable is one standard deviation higher than the baseline, it implies a positive change in elasticity of 0.05. The minimum wage has a positive insignificant effect between 0.04 and 0.29 under full monopsonistic labor markets. The results are consistent among different specifications and in controlling for possible external shocks and omitted variables.

Minimum Wage Effects Under Weak Compliance with Labor Regulations: The Case of Bolivia

2017 ◽  
Author(s):  
Marcelo Claure ◽  
Jorge DDvalos ◽  
Alejandra Leyton ◽  
Vanessa SSnchez ◽  
Christian Valencia
Keyword(s):  
Minimum Wage ◽  
Labor Regulations ◽  
Wage Effects

Higher education, gender, and foreign direct investment: Evidence from OECD countries

2021 ◽  
pp. 095042222199727
Author(s):  
George Pantelopoulos
Keyword(s):  
Higher Education ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Tertiary Education ◽  
Labour Force ◽  
Oecd Countries ◽  
Educational Levels ◽  
Education Statistics ◽  
Level Of Significance ◽  
The Relationship

The objective of this study was to explore and empirically investigate the relationship between the labour force across educational levels and foreign direct investment (FDI), and to facilitate comparisons of education statistics and indicators across countries based on uniform and internationally agreed definitions. The analysis focuses on OECD countries. The empirical findings suggest that an educated labour force positively affects inward FDI. However, different educational levels do not have the same level of significance; tertiary education appears to have the greatest influence. As far as gender is concerned, the level of female participation in the workforce seems to be crucial in attracting FDI, and governments should therefore adopt policies to promote women’s empowerment.

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