Labor Market Integration

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David E. Wildasin - One of the best experts on this subject based on the ideXlab platform.

  • economic Integration and Labor Market institutions worker mobility earnings risk and contract structure
    Regional Science and Urban Economics, 2007
    Co-Authors: Ronnie Schob, David E. Wildasin
    Abstract:

    Abstract This paper investigates the effects of Labor Market Integration, in the form of worker mobility, in a model with long-term Labor contracts that lead to wage rigidities and unemployment. Reflecting the interdependence of regional Labor Markets, we develop a framework where the contract structure is simultaneously determined in all regions. It is shown that increased mobility leads to more flexible Labor Market institutions in which firms can more easily vary the level of employment in response to fluctuations in demand. Economic Integration is potentially Pareto-improving but, in the absence of a system of compensation, workers are harmed by greater Labor mobility while the owners of firms benefit from higher profits.

  • economic Integration and Labor Market institutions worker mobility earnings risk and contract structure
    Research Papers in Economics, 2003
    Co-Authors: Ronnie Schob, David E. Wildasin
    Abstract:

    This paper investigates the effects of Labor Market Integration, in the form of worker mobility, in a model with long-term Labor contracts that lead to wage rigidities and unemployment. Reflecting the interdependence of regional Labor Markets, we develop a general-equilibrium framework where the contract structure is simultaneously determined in all regions. It is shown that increased mobility leads to more flexible Labor Market institutions in which firms can more easily vary the level of employment in response to fluctuations in demand. Economic Integration is potentially Pareto-improving but, in the absence of a system of compensation, workers are harmed by greater Labor mobility while the owners of firms benefit from higher profits.

  • Economic Integration and Labor Market Institutions: Worker Mobility, Earnings Risk, and Contract Structure
    Labor and Demography, 2001
    Co-Authors: Ronnie Schoeb, David E. Wildasin
    Abstract:

    This paper investigates the effects of Labor Market Integration, in the form of worker mobility, in a model with long-term Labor contracts that lead to wage rigidities and unemployment. Increased mobility leads to more flexible Labor Market institutions in which firms can more easily vary the level of employment in response to fluctuations in demand. Economic Integration is potentially Pareto-improving but, in the absence of a system of compensation, workers are harmed by greater Labor mobility while the owners of firms benefit from higher profits.

  • Labor Market Integration investment in risky human capital and fiscal competition
    The American Economic Review, 2000
    Co-Authors: David E. Wildasin
    Abstract:

    This paper presents a general-equilibrium model where human capital investment increases specialization and exposes skilled workers to region-specific earnings risk Interjurisdictional mobility of skilled Labor mitigates these risks; state-contingent migration of skilled Labor also improves efficiency. With perfect capital Markets, Labor-Market Integration raises welfare and reduces ex post earnings inequality. If instead human capital investment can only be financed through local taxes, Labor-Market Integration leads to interjurisdictional fiscal competition, shifting the burden of taxation to low-skilled immobile workers. Decentralized public provision of human capital investment creates earnings inequalities and is inefficient.

Antonio Spilimbergo - One of the best experts on this subject based on the ideXlab platform.

  • Labor Market Integration unemployment and transfers
    Review of International Economics, 1999
    Co-Authors: Antonio Spilimbergo
    Abstract:

    Integration of the Labor Markets between a rich country (North) and a poor country (South) often leads to high unemployment in the South and transfers from North to South; for instance: United States versus Puerto Rico, West versus East Germany, Northern versus Southern Italy. This paper presents a general equilibrium model in which workers finance a transfer to the unemployed in the South in order to limit migration. In addition, it extends the framework to consider: the difference in efficiency between natives and immigrants, taxes on fixed factors in the North with internal transfers, and subsidies to the employed in the South.

  • Labor Market Integration unemployment and transfers
    Social Science Research Network, 1998
    Co-Authors: Antonio Spilimbergo
    Abstract:

    Integration of the Labor Markets between a rich country (North) and a poor country (South) often leads to high unemployment in the South and transfers from North to South: for instance, United States vs. Puerto Rico; West vs. East Germany; Northern vs. Southern Italy. We present a general equilibrium model in which workers finance a transfer to the unemployed in the South in order to limit migration. In addition, we extend our framework to consider: difference in efficiency between natives and immigrants, taxes on fixed factors in the North with internal transfers, and subsidies to the employed in the South.

Petrik Runst - One of the best experts on this subject based on the ideXlab platform.

  • The effect of occupational licensing deregulation on migrants in the German skilled crafts sector
    European Journal of Law and Economics, 2018
    Co-Authors: Petrik Runst
    Abstract:

    Occupational licensing on the national level reduces Labor Market prospects of individuals with a low likelihood of fulfilling the licensing requirements. Such regulation has the potential to adversely affect the Labor Market Integration of foreign-born citizens and can be an obstacle to the free movement of Labor toward its most productive uses. Before the backdrop of increased levels of migration into Germany, and the discussion about harmonizing Labor standards in Europe, this paper empirically examines the effects of the deregulation of occupational licensing in the German crafts sector on the proportion of migrants working in this sector. The results suggest that the deregulation has increased the proportion of migrants among self-employed as well as employed craftsmen in the fully deregulated trades.

  • the effect of occupational licensing deregulation on migrants in the german skilled crafts sector
    Research Papers in Economics, 2016
    Co-Authors: Petrik Runst
    Abstract:

    Occupational Licensing may reduce the entry of minorities, such as migrants, into a profession if the likelihood of fulfilling the licensing requirements is lower in this group. While policy makers typically justify occupational licensing on the grounds of quality control it, thus, also has the potential to adversely affect the Labor Market Integration of foreign‐born citizens. Before the backdrop of increased levels of migration into Germany, and the general discussion about the free movement of Labor in Europe, this paper empirically examines the effects of the deregulation of occupational licensing in the German crafts sector on the proportion of migrants working in this sector. The results suggest that the reform has increased the proportion of migrants by about 5 percentage points among self‐employed professionals and 6 percentage points among employed craftsmen.

Yasuhiro Sato - One of the best experts on this subject based on the ideXlab platform.

  • migration skill formation and the wage structure
    Journal of Regional Science, 2011
    Co-Authors: Kristian Behrens, Yasuhiro Sato
    Abstract:

    We analyze the impacts of migration and of Labor Market Integration on the distribution of skills and the wage structure in both the short and the long run. To do so, we develop a framework where workers have heterogeneous skills and where in-migration expands the range of available skills in the economy. In the short run, this expansion leads to productivity gains, which may more than offset the negative endowment effects of a larger Labor supply so that all workers may be better off. In the long run, in-migration impacts wages further by altering the workers' incentives to acquire skills, thereby affecting the wage structure indirectly by changing the economy's skill composition. Since the short and the long-run effects of in-migration on wages may differ, compositional changes may be an important element to take into consideration. A numerical illustration calibrated on U.S. data suggests that the immigration of skilled workers negatively affects the incentives for domestic skill formation, thereby suggesting that endowment effects dominate externalities. We finally extend the model to cope with the simultaneous impacts that migration and skill formation have on the host and the source region, and we show that more migration increases wage disparities and the skill gap across regions.

  • Labor Market Integration and migration: Impacts on skill formation and the wage structure
    SSRN Electronic Journal, 2006
    Co-Authors: Kristian Behrens, Yasuhiro Sato
    Abstract:

    We analyze the impacts of Labor Market Integration and migration on skill formation, wage structures, and per capita GDP of host and source countries. To do so, we propose a model in which heterogeneous agents invest in the acquisition of skills, and in which final good production exhibits increasing returns to scale in the range of available skills. Labor Market Integration, by allowing for migration in response to wage differentials, changes the wage structures and, therefore, the incentives to become skilled in both host and source countries. We show that our model can largely replicate the empirical evidence concerning international migration, the widening international income dispersion, the narrowing national income dispersion, and the divergence in the rates of skill formation in host and source countries.

Matti Sarvimaki - One of the best experts on this subject based on the ideXlab platform.

  • immigration history entry jobs and the Labor Market Market Integration of immigrants
    Journal of Economic Geography, 2021
    Co-Authors: Laura Ansala, Olof Aslund, Matti Sarvimaki
    Abstract:

    We examine how immigrants enter the Labor Market and whether their Integration process varies by host country's immigration history. We focus on two countries - Finland and Sweden - that have similar formal institutions, but differ vastly in their past immigration experience. Nevertheless, in both countries, immigrants tend to find their first jobs in low-paying establishments where the manager and colleagues often share their ethnic background. Time to entry and entry job characteristics vary widely by region of origin. Furthermore, entry job characteristics predict earnings dynamics and job stability. The patterns and associations are remarkably similar in Finland and Sweden. These findings suggest strong regularities in Labor Market Integration and ethnic segregation that are independent of immigration history and ethnic diversity.

  • immigration history entry jobs and the Labor Market Integration of immigrants
    Social Science Research Network, 2020
    Co-Authors: Laura Ansala, Olof Aslund, Matti Sarvimaki
    Abstract:

    This paper studies the relationship between past immigration experiences of the host country and the way new immigrants enter the Labor Market. We focus on two countries—Finland and Sweden—that have similar formal institutions but starkly different immigration histories. In both countries, immigrants tend to find their first jobs in low-paying establishments, where the manager and colleagues share their ethnic background. The associations between background characteristics, time to first job, other entry job characteristics, earnings dynamics and job stability are also remarkably similar. These results are consistent with the hypothesis that the host country's immigration history plays a limited role in shaping the Integration process.

  • immigration history entry jobs and the Labor Market Integration of immigrants
    Research Papers in Economics, 2020
    Co-Authors: Laura Ansala, Olof Aslund, Matti Sarvimaki
    Abstract:

    We examine how immigrants enter the Labor Market and whether their Integration process varies by host country's immigration history. We focus on two countries - Finland and Sweden - that have similar formal institutions, but differ vastly in their past immigration experience. Nevertheless, in both countries, immigrants tend to find their first jobs in low-paying establishments where the manager and colleagues often share their ethnic background. Time to entry and entry job characteristics vary widely by region of origin. Furthermore, entry job characteristics predict earnings dynamics and job stability. The patterns and associations are remarkably similar in Finland and Sweden. These findings suggest strong regularities in Labor Market Integration and ethnic segregation that are independent of immigration history and ethnic diversity.

  • Labor Market Integration of refugees in finland
    Social Science Research Network, 2017
    Co-Authors: Matti Sarvimaki
    Abstract:

    This paper documents Finland’s policy response to the increase in asylum applications in 2015 and the Labor Market performance of earlier immigrants living in Finland. Immigrants born in Afghanistan, Iraq and Somalia had substantially lower employment rates, earned less and received more social benefits than other immigrant groups or natives in 1990–2013. The immigrant-native gaps in employment and earnings decreased over time but remained large. Ten years after arriving in Finland, the average earnings of immigrant men from these countries were only 22–38 percent of the average earnings of native men of the same age. The relative earnings of women were even smaller. Furthermore, the difference in equivalence-scaled social benefits persisted over time despite the narrowing of earnings gaps.