labor market

Abstract

About 3% of GNP is spent on government labor market programs
in Sweden, compared to 2% in Germany and less than 0.5% in the
U.S. In Sweden these programs include extensive job training,
public sector relief work, recruitment subsidies, youth programs,
mobility bonuses, and unemployment benefits. Using county-level
data, we provide new evidence that public relief workers displace
other workers, especially in the construction sector. Our review
of the previous literature suggests that job training programs
have small effects on wages and re—employment in Sweden, but
precise inferences are difficult because of small sample sizes.
We also investigate alternative reasons for the stability of the
Beveridge Curve in Sweden, and compare regional evolutions of
employment and unemployment in Sweden and the U.S. Lastly, we
present cross-country analysis for 1993 which, contrary to
studies that use earlier data, shows that the extent of a
country's active labor market programs is positively associated
with the national unemployment rate.

Year of Publication
1994
Number
332
Date Published
07/1994
Publication Language
eng
Citation Key
In Richard Freeman, Brigitta Swedenborg and Robert Topel (eds.), The Welfare State in Transition (Chicago:University of Chicago Press, 1996)
Forslund, A., & Krueger, A. (1994). An Evaluation of the Swedish Active Labor Market Policy: New and Received Wisdom. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01rj430453h (Original work published July 1994)
Working Papers
Abstract

A central issue in agricultural taxation and pricing policy analysis is the
degree to which the rural labor market can be characterized by a
competitive supply and demand framework, and if so, what is the magnitude
of the elasticity of demand for labor. The primary focus of this paper is
to determine the degree to which farm household behavior is consistent with
a competitive, clearing external labor market. In order to implement this
program, the old observation that in the absence of labor markets,
household composition is an important determinant of farm labor use, is
formalized by incorporating household structure into the general framework
of agricultural household models. The conditions under which specific
market distortions, such as off—farm employment rationing, will lead to
household demographic composition affecting farm labor demand are derived.
After completing this theoretical discussion, an empirical model is
developed which tests the proposition that household labor demand is
independent of family composition. This model is estimated on a detailed
household / farm data set from rural Java. Several statistical issues,
including measurement error and endogeneity of the market wage are
addressed through the use of appropriate instrumental variable techniques.
I cannot reject the null hypothesis that farm labor allocation decisions
are taken independently of household structure. In addition, farm labor
demand has a well determined negative wage elasticity in the range -0.3 to
-0.5. The results of the research indicate for the case of Java, farm
household behavior is consistent with a clearing, competitive external
labor market.

Year of Publication
1988
Number
244
Date Published
11/1988
Publication Language
eng
Citation Key
Econometrica , Vol. 60, No. 2, March 1992.
Benjamin, D. (1988). Household Composition and Labor Demand: A Test of Rural Labor Market Efficiency. Retrieved from http://arks.princeton.edu/ark:/88435/dsp016969z077s (Original work published November 1988)
Working Papers
Author
Abstract

I examine changes in the incidence of long-term employment in the United
States using data from mobility supplements and pension and benefit supplements to the
Current Population Survey (CPS) from 1979 through 1996. After controlling for demo-
graphic characteristics, the fraction of workers reporting more than ten and more than
twenty years of tenure fell substantially after 1993 to its lowest level since 1979. This
decline was concentrated among men, while long-term employment relationships became
slightly more common among women. The decline in the incidence of long-term employ-
ment relationships for all workers was not mirrored in an increase in incidence on lost jobs
(jobs from which workers were laid off Thus, the evidence is not consistent with the view
that the decline in long-term employment relationships is the result of employers targeting
long-term employees for layoff. In fact, it was found that the share of displaced men who
are displaced from long-term employment relationships has declined since 1979. In the
end, long-term employment relationships remain an important feature of the U.S. labor
market, and women are represented more fully in these relationships than in the past.

Year of Publication
1997
Number
384
Date Published
07/1997
Publication Language
eng
Citation Key
8232
Farber, H. (1997). Trends in Long Term Employment in the United States, 1979-96. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01g158bh309 (Original work published July 1997)
Working Papers
Keywords
Abstract

A common feature to most aggregative studies of the labor market is a marginal productivity expression in which the quantity of labor appears on
the left hand side of the equation, and the right hand side includes the real
wage and output. A number of researchers have cautioned that if the output
variable is treated as exogenous, serious econometric difficulties may
result. However, the assumption that output is exogenous has not been
tested. In this paper, we estimate an equilibrium model of the labor market,
and use it to test the assumption of output exogeneity. We find that the
assumption that output is exogenous cannot be rejected by the data.

Year of Publication
1988
Number
245
Date Published
11/1988
Publication Language
eng
Citation Key
Review of Economics and Statistics, August, 1980.
Rosen, H., & Quandt, R. (1988). Endogenous Output in an Aggregate Model of the Labor Market. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01c534fn945 (Original work published November 1988)
Working Papers