Search results

"An important component of the debate surrounding climate legislation in the United States is its potential impact on labor markets. Theoretically the connection is ambiguous and depends on the sign of cross-elasticity of labor demand with respect to energy prices, which is a priori unknown. This paper provides some new evidence on this question by estimating the relationship between real electricity prices and indicators of labor market activity using data for 1976-2007. A key contribution of this analysis is that it relies on within-state variation in electricity prices to identify the models and considers all sectors of the U.S. economy rather than focusing only on the manufacturing sector. The main finding is that employment rates are weakly related to electricity prices with implied cross elasticity of full-time equivalent (FTE) employment with respect to electricity prices ranging from -0.16% to -0.10%. I conclude by interpreting these empirical estimates in the context of increases in electricity prices consistent with H.R. 2454, the American Clean Energy and Security Act of 2009. The preferred estimates in this paper suggest that in the short-run, an increase in electricity price of 4% would lead to a reduction in aggregate FTE employment of about 460,000 or 0.6%"--National Bureau of Economic Research web site

The types of workers recruited into teaching and their allocation across classrooms can greatly influence a country's stock of human capital. This paper considers how markets and non-market institutions determine the quantity, wages, skills, and spatial distribution of teachers in developing countries. Schools are a major source of employment in developing countries, particularly for women and professionals. Teacher compensation is also a large share of public budgets. Teacher labor markets in developing countries are likely to grow further as teacher quality becomes a greater focus of education policy, including under the United Nations Sustainable Development Goals. Theoretical approaches to teacher labor markets have emphasized the role of non-market institutions, such as government and unions, and other frictions in teacher employment and wages. The evidence supports the existence and importance of such frictions in how teacher labor markets function. In many countries, large gaps in pay and quality exist between teachers and other professionals; teachers in public and private schools; teachers on permanent and temporary contracts; and teachers in urban and rural areas. Teacher supply increases with wages, though teacher quality does not necessarily increase. However, most evidence comes from studies of short-term effects among existing teachers. Evidence on effects in the long-term, on the supply of new teachers, or on changes in non-pecuniary compensation is scarcer.

In Europe, about one in eight people of working age report having a disability; that is, a long-term limiting health condition. Despite the introduction of a range of legislative and policy initiatives designed to eliminate discrimination and facilitate retention of and entry into work, disability is associated with substantial and enduring labor market disadvantage in many countries. Identifying the reasons for this is complex, but critical to determine effective policy solutions that reduce the extent, and social and economic costs, of disability-related disadvantage.

Regulating the labor market to increase job security is just one possible way of addressing workers demands for income protection against labor market risks. By acknowledging that other policies can be used to address the same political demand, this paper develops a simple framework to understand rms preferences towards labor market regulation vis a vis a system of unemployment bene ts, which can be understood as a political substitute. Two key empirical implications of the theoretical argument are tested and corroborated with data on ring costs and the generosity of the unemployment insurance system from OECD countries and the rest of the world. First, there seems to be a relation of substitution between the cost of ring and the generosity of unemployment subsidies across countries. And second, countries with more volatile economic conditions seem to prefer the latter policy to the former. ; Peer reviewed

According to Mexico's Constitution and labor laws, the dismissal of a worker without "just cause" requires employers to make a one-time compensation payment based on the worker's length of service. Search and job offer models are used to show that this de facto unemployment compensation system introduces inefficiencies into the labor market. Therefore, changes in the labor laws are likely in near future. An alternative unemployment compensation mechanism, based on the Brazilian "fundo de garantia", is presented. It would correct the inefficiencies of the current system, yet it is similar enough to overcome organized labor's reluctance to give up current limited benefits. (Lat Am Stud/DÜI)

This paper investigates the effects of fiscal policy on economic activity, welfare, income distribution, and public finances in a dynamic general equilibrium model with a unionized labor market. The paper shows that increases to public employment, wages of public sector employees, unemployment benefits, and labor taxes put pressure on unions' wage claims, leading to higher private sector wages, lower employment and output. The paper also suggests that capitalists benefit from fiscal adjustments, while workers are hurt, especially during the stabilization and in its immediate aftermath. However, both capitalists and workers are better off when the adjustment is achieved by cutting welfare spending and the government wage bill. These types of fiscal consolidations are also the most effective in reducing the primary deficit and public debt.