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Open access

Jasmine Boatner

Abstract

Background

Although unemployment rates are at historical lows, there is still a persistent gap between unemployment rates in black and white population. Some have proposed that part of the gap for men can be explained by the higher rate of criminal records in the black population.

Methods

This analysis aims to use negative binomial regressions and the detailed crime data available from the National Longitudinal Survey of Youth 1997 survey to determine if black men with criminal records appear to be the driving force behind the gap.

Results

The author finds that there are significant deviations in labor market outcomes depending on race and ethnicity, even when controlling for a criminal record and premarket skills.

Conclusions

Lowering the disproportionate rate at which black men are incarcerated will not in itself eliminate the unemployment gap between white and black men.

Open access

Duncan McVicar, Andrew Park and Seamus McGuinness

Abstract

This paper examines the impacts of the introduction of the UK National Minimum Wage (NMW) in 1999 and the introduction of the UK National Living Wage (NLW) in 2016 in Northern Ireland (NI) on employment and hours. NI is the only part of the UK with a land border where the NMW and NLW cover those working on one side of the border but not those working on the other side of the border (i.e., Republic of Ireland). This discontinuity in minimum wage coverage enables a research design that estimates the impacts of the NMW and NLW on employment and hours worked using difference-in-differences estimation. We find a small decrease in the employment rate of 22–59/64-year-olds in NI, of up to 2% points, in the year following the introduction of the NMW, but no impact on hours worked. We find no clear evidence that the introduction of the NLW impacted either employment or hours worked in NI.

Open access

Yigit Aydede and Atul Dar

Abstract

A growing wage gap between immigrant and native-born workers is well documented and is a fundamental policy issue in Canada. It is quite possible that wage differences, commonly attributed to the lower quality of foreign credentials or the deficiency in the accreditation of these credentials, merely reflect lower wage offers that immigrant workers receive due to risk aversion among local firms facing an elevated degree of asymmetric information. Using the 2006 and 2011 population censuses, this paper empirically investigates the effects of wage bargaining in labor markets on the wage gap between foreign- and Canadian-educated workers. Our results imply that a significant part of the wage gap between foreign-educated and Canadian-educated immigrant (and native-born) workers is not driven by the employers’ risk aversion but by differences in human capital endowments and occupational matching quality.

Open access

Kathryn Anne Edwards and Jeffrey B. Wenger

Abstract

The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this financial support is accompanied by adjustments to parental consumption, income, or savings behavior. With longitudinal data on mothers and children from the Panel Study of Income Dynamics, we use within-mother variation in behavior to identify the effect of a child’s labor market shock on parent outcomes. We find evidence of a decline in consumption, an increase in labor supply, and a decrease retirement savings, though the results are heterogenous among mothers. Our results point to aggregate inefficiencies and inequities that may result from family risk sharing.

Open access

Nicholas Wilson

Abstract

Standard labor market models predict that the likelihood of employment increases, hours worked increase, and individuals transition from less-skilled and temporary jobs to more skilled and more stable employment as they age. I examine the association between age and transactional sex work using national household surveys from Zambia, one of the few settings with general population surveys asking women about transactional sex and a relatively high documented prevalence of employment in transactional sex. My results indicate that the likelihood of employment in transactional sex sharply falls with age. Increased employment opportunities outside of transactional sex do not appear to explain the transactional sex employment-age profile and marital status appears to explain only a portion of it. These findings are consistent with the hypothesis that clients prefer younger transactional sex workers and suggest that policymakers implement interventions designed to reduce client demand for younger females.

Open access

Aloys Prinz

Abstract

Besides effects on economic well-being, migration of people with distant cultural backgrounds may also have large effects on people’s cultural identity. In this paper, the identity economics of Akerlof and Kranton (2000) is applied to migration. Accordingly, it is assumed that the utility of both the immigrants and the native population encompasses economic well-being and cultural identity. The migration effect on cultural identity depends, among others, on the distance between cultures. In a simple immigration game it is shown that immigrants may prefer to live rather in diaspora communities than to integrate into the host countries’ culture. This subgame-perfect equilibrium choice of immigrants seems the more likely the greater the cultural distance between their country of origin and the destination country is. Among the available policy instruments, restrictions on the freedom of movement and settlement of immigrants may be the most effective way to prevent the setup of large diaspora communities. For young immigrants and later generations of immigrants, integration via compulsory schooling is the most important policy. In general, cultural, religious and social institutions may support integration.

Open access

Lubica Gajanova, Margareta Nadanyiova and Dominika Moravcikova

Abstract

With growing competition, loyal customers have become the key to the company’s success. Brand loyalty has been a central structure for marketing for almost a century, yet this research topic is still modern and up to date. The aim of this contribution is to answer the research question of whether there are different segments of customers based on demographic and psychographic aspects that would differ in the level of brand loyalty in the company. In other words, do certain groups of company’s customers (according to demographic or psychographic segmentation) have a higher degree of loyalty to the company’s brand? To answer the research question, we have identified hypotheses expressing the existence of a statistical dependence between individual segmentation variable and the level of brand loyalty. Based on statistical testing of established hypotheses, we have confirmed the existence of certain company’s segments that have a higher degree of loyalty.