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Is Parental Leave Costly for Firms and Coworkers?

Journal of Labor Economics 2024 42(4), 1135-1174
We estimate the effect of a female employee giving birth and taking parental leave on small firms and coworkers in Denmark using a dynamic difference-in-differences design. We find little evidence that parental leave take-up has negative effects on firms and coworkers overall. This is because most firms are very effective in compensating for the worker on leave by hiring temporary workers and by increasing other employees’ hours. In contrast, we do find evidence that parental leave has negative effects on a small subsample of firms that are less able to use their existing employees to compensate for absent workers.

Career Consequences of Firm Heterogeneity for Young Workers: First Job and Firm Size

Journal of Labor Economics 2024 42(2), 549-589
I study the long-term effects of landing a first job at a large firm versus a small one using Spanish administrative data. Size could be a relevant employer attribute for inexperienced workers since large firms are associated with greater productivity, wages, and training. The key empirical challenge is selection into first jobs based on unobserved worker characteristics. I develop an instrumental variable approach that, keeping business cycle conditions fixed, leverages variation in the composition of labor demand that labor market entrants face. Initially matching with a larger firm persistently improves long-term outcomes, even through subsequent jobs. Mechanisms suggest better skill development at large firms.

Comparing the Effects of Policies for the Labor Market Integration of Refugees

Journal of Labor Economics 2024 42(S1), S335-S377 open access
This paper reviews, reanalyzes, and extends to the long run the estimated effects of integration polices on the employment probability and earnings of refugees in Denmark. We first describe the dynamics of labor market outcomes of refugees in Denmark. We then find that increased language training and initial placement in strong labor markets improved refugees’ long-run labor market outcomes, while cutting initial welfare payments and placing refugees near other refugees did not improve them. Policies focused on matching refugees with occupations experiencing shortages have positive short-run effects, but we cannot yet assess their long-run effects

Geographic Variation in Cesarean Sections in the United States: Trends, Correlates, and Other Interesting Facts

Journal of Labor Economics 2024 42(S1), S219-S259 open access
Analyzing data spanning three decades covering the near universe of births, we study county-level differences in Cesarean section (C-section) rates among first-time mothers of singleton births. Our research reveals persistent geographic variation in C-section rates for both low- and high-risk groups. Counties with elevated C-section rates consistently perform more C-sections across mothers at all levels of appropriateness for the procedure. These elevated rates of C-section in high C-section counties are associated with reduced maternal and infant morbidity. We also find that C-section decisions are less responsive to underlying risks for Black mothers relative to white mothers, suggesting potential welfare-reducing disparities.

Pricing the Biological Clock: The Marriage Market Costs of Aging to Women

Journal of Labor Economics 2024 42(2), 395-426
This paper quantifies the causal negative impact of age on women’s marriage market appeal using an experiment where real online daters rate hypothetical profiles with randomly assigned ages. Truthfulness is incentivized through the experiment’s compensation: participants receive professional dating advice customized according to their ratings. The experiment shows that for every year a woman ages, she must earn $7, 000 more annually to remain equally attractive to potential partners. This preference appears driven by women’s asymmetric fertility decline with age, as it is present only for men without children and who have accurate knowledge of the age-fertility trade-off

Caregiving and Labor Supply: New Evidence from Administrative Data

Journal of Labor Economics 2024 42(S1), S183-S218
A significant share of the rapidly growing demand for long-term care is met by family members, many of whom also work, and family caregiving has been shown to affect labor market outcomes. We use survey responses about family caregiving roles linked to administrative earnings records to estimate the employment trajectories of family caregivers over a 25-year period around the reported start of a caregiving episode. These trajectories vary significantly by gender. Relative to a matched comparison group, caregiving precipitates a drop in both earnings and employment for women, while men enter caregiving only after experiencing significant labor supply disruptions

Men, Women, and Capital: Estimating Substitution Patterns Using a Size and Gender-Dependent Childcare Policy in Chile

Journal of Labor Economics 2024
This paper uses a policy implemented in Chile that obliges firms to fully fund childcare costs for their female employees, but only if they hire more than 19 women. Using plant level data from manufacturing firms, we first show that this policy has had a substantially detrimental impact on the hiring of women above that threshold, in particular since the policy has become more binding, in industrial sectors that hire fewer women and in larger firms. We then use the response of firms to study whether women workers are more or less complementary to capital than men. We find that firms that avoid the legislation by having just below 20 female workers are significantly more capital intensive than firms just above the threshold. This suggests that firms that want to avoid being subject to the regulation replace women with capital but in such a way that the capital to men ratio increases. We use our estimates to calibrate a production function and find that our results are consistent with a framework where women are weakly substitutes with capital (while men are complementary) in this emerging economy’s manufacturing sector. This does not seem to be driven by a change in skill composition of the workforce. We also find some evidence of other changes: average wages and total workforce are lower for firms who hire 20 women than those who hire just below that threshold but labor productivity is unaltered. PRELIMINARY, PLEASE DO NOT CITE ∗We thank comments from seminar participants at IADB, PUC Chile and Toronto. All remaining errors are our own. †Pontificia Universidad Catolica de Chile ‡Pontificia Universidad Catolica de Chile. §Pontificia Universidad Catolica de Chile and FinanceUC