Three essays on labor economics

This dissertation addresses labor market issues. The first two chapters deal with employment issues during the great recession using nationally representative data from the Survey of Income and Program Participation. The first chapter looks at the added worker effect in the great recession, the wife's labor market response to a husband loss of job. The second chapter investigates the impact of a wife's labor market participation on family poverty. The third chapter examines employment opportunities in the economics discipline using journal publication records from IDEAS/RePEc. It looks at the effect of new journal entry on the distribution of publicati

Unemployment and labor force participation in Italy

PurposeOur main purpose is to test the unemployment invariance hypothesis in Italy.Design/methodology/approachThis paper provides an empirical investigation of the unemployment and labor force participation in Italy.FindingsCointegration analysis results strongly suggest a clear long-run relationship between unemployment and labor force participation revealing a persistent and general added worker effect.Originality/valueOur results seem to confute the unemployment invariance hypothesis.

The Changing Nature of Gender Selection into Employment over the Great Recession

The Great Recession has strongly influenced employment patterns across skill and gender groups in EU countries. We analyze how these changes in workforce composition might distort comparisons of conventional measures of gender wage gaps via non-random selection of workers into EU labour markets. We document that male selection (traditionally disregarded) has become positive during the recession, particularly in Southern Europe. As for female selection (traditionally positive), our findings are twofold. Following an increase in the LFP of less-skilled women, due to an added-worker effect, these biases declined in some countries where new female entrants were able to find jobs, whereas they went up in other countries which suffered large female employment losses. Finally, we document that most of these changes in selection patterns were reversed during the subsequent recovery phase, confirming their cyclical nature.

Cross-spousal influences on mature-aged Australians’ transitions in and out of employment 2001–2017

This article uses data from the longitudinal Household, Income, and Labour Dynamics in Australia survey to examine cross-spousal influences on workforce transitions by men ( n = 4667) and women ( n = 5051) aged 50–69. We assess how gender patterns in employment (full- and part-time work) and non-employment activity (unemployment, non-employment and homemaking) changed among this age group over the period 2001–2017, which included the Global Financial Crisis (GFC) of 2008. Notwithstanding that more men than women were in full-time work, and more women than men were employed part time or were homemakers, over the period there was an overall rise in employment for both genders, which following the GFC continued most strongly for women. Random effects logistic regression on partnered men and women showed that prior to the GFC one spouse transitioning out of the labour market was associated with significantly higher odds of the other spouse also doing so. This implies coordination, for example spouses retiring together. In contrast, following the GFC, one spouse leaving paid employment was associated with higher odds of the other taking up work or increasing their hours, suggesting that the economic slowdown encouraged an added worker effect in those households, with one spouse compensating for the job loss of the other. The finding was apparent for both men and women.

Family job search and wealth: The added worker effect revisited

We propose and estimate a model of family job search and wealth accumulation with data from the Survey of Income and Program Participation (SIPP). This dataset reveals a very asymmetric labor market for household members who share that their job finding is stimulated by their partners' job separation. We uncover a job search‐theoretic basis for this added worker effect, which occurs mainly during economic downturns, but also by increased nonemployment transfers. Thus, our analysis shows that the policy goal of increasing nonemployment transfers to support a worker's job search is partially offset by the spouse's cross effect of decreased nonemployment and wages. The added worker effect is robust to having more children and more education in the household and does not just result as a composition of heterogeneous individuals. We also show that the interdependency between household members is understated if wealth and savings are not considered. Finally, we show that gender equality in the labor market not only improves women's labor market performance, but it also increases men's accepted wages and nonemployment rates.