Ambar Narayan, Roy Van der Weide, 02 July 2018

Intergenerational mobility is important for both fairness and economic efficiency in a society. This column uses data from a new global study spanning five decades to show that average relative mobility is lower in developing economies, with no sign that the gap with developed countries is getting smaller. In addition, income mobility in several developing economies is much lower than their levels of educational mobility would lead us to expect. Labour market deficiencies appear to be contributing to this gap between mobility in education and income. 

Alessandra Casarico, Giovanni Facchini, Tommaso Frattini, 28 June 2018

European countries have recently experienced an extraordinary inflow of asylum seekers. Using a theoretical framework and US data, this column studies the key economic triggers which prompt policymakers to implement immigration legalisation programmes. It shows that the more restricted the occupational opportunities of undocumented immigrants and the smaller the fiscal leakage to undocumented immigrants via the welfare state, the more desirable an amnesty is. 

Antonio Fatás, 16 June 2018

José Azar, Ioana Marinescu, Marshall Steinbaum, Bledi Taska, 07 June 2018

The effect of increasing product market concentration on the labour market is sometimes overlooked because the labour market is often assumed to be entirely competitive. This column discusses the definition of labour markets and analyses the circumstances in which employers have monopsonist power to set wages, thus contributing to the growing debate over whether market concentration might be one cause of stagnant wages and other labour trends. 

Andrea Bassanini, Federico Cingano, 16 April 2018

Structural reforms can trigger and sustain economic growth, but they can also present transitory costs that policymakers seek to avoid during economic downturns. This column analyses the short-term response of employment levels to product and labour market reforms. While reforms entail non-negligible transitory employment losses on average, the losses are smaller for reforms implemented during economic upswings and in countries with significant labour market dualism.

Grégory Claeys, André Sapir, 11 April 2018

It is only in the last decade that the EU has had an active policy to reintegrate workers who lost their jobs as a result of globalisation, through the European Globalisation Adjustment Fund. This column assesses the performance of the Fund and makes three recommendations to improve its effectiveness. To be more successful, the Fund should improve its monitoring and widen the scope of its usage.

Tolga Aksoy, Paolo Manasse, 23 March 2018

After 2008, labour markets in the euro area responded differently to the recessions and subsequent labour market reforms. This column uses data from 19 countries to show that labour and product market reforms speeded up the recovery from recession, but also reduced the resilience of employment to shocks. Because the resilience effect occurs first, deep reforms risk losing public support.

Benjamin Villena-Roldán, Stefano Banfi, 17 February 2018

Researchers often pick a random or a directed search model based on convenience and theoretical implications, but distinguishing between the two is important as many labour market regulations may be welfare-improving under random search, but not under directed search. This column uses data from Chile to show that job-seekers respond to information posted by employers, suggesting that policy design should consider the prescriptions of directed search models.  However, the evidence also shows that relevant features of these markets are not well captured by existing models.

Ayako Kondo, 21 November 2017

Economists have studied extensively the direct impacts of natural disasters on local labour markets, but less is known about the knock-on consequences for wider markets. This column argues that although supply chain disruptions caused by the Great East Japan Earthquake increased job separation and geographical shifts, the effects on employment status were weak. The long-run impact of the earthquake on the labour markets outside of the directly affected areas appears to be limited, despite public concerns at the time.

David Neumark, 09 October 2017

Studies of the employment effects of minimum wages have been wide-ranging, but a consensus proves elusive. This column summarises the existing literature and proposes some key questions to better inform policy in the context of minimum wages across different states in the US. Future areas for research should include understanding why different approaches yield different answers, as well as a recognition that there is not one minimum wage effect, but several across different contexts.

Hiromi Hara, 19 July 2017

Although the gender wage gap in Japan has been decreasing over the last 15 years, it remains large. This column shows that both the ‘glass ceiling’ and the ‘sticky floor’ exist in the Japanese labour market. The country’s human resource management system and a culture which rewards those who are willing to work outside of regular hours are to blame.

Masayuki Morikawa, 06 July 2017

Given the early stages of diffusion of many AI and robotic technologies, it is too early to measure the impact of these innovations on jobs. This column uses comprehensive survey data from Japan to measure the extent to which workers across different industries, levels of education, and occupations perceive their jobs to be at risk. Workers with adaptable skills acquired through higher education (particularly in science and engineering) or occupation-specific skills (particularly those in human-intensive personal services) are less worried about their jobs being replaced by AI and robotics.

Christian Dippel, Robert Gold, Stephan Heblich, Rodrigo Pinto, 12 April 2017

Finding exogenous variables to establish control mechanisms is difficult outside of randomised control trials. This column shows that under certain circumstances, it is possible to separate out the causal effect of an unknown variable on the observed and unobserved variables. When applied to trade exposure and voter sentiment for populist parties, the model is largely accurate and gives the surprising finding that 170% of the total effect of trade exposure on populist voting is explained by labour markets, meaning that trade exposure’s other effects on voting – those that do not run through labour markets – are politically moderating.

Marco Di Cataldo, Andrés Rodríguez-Pose, 06 April 2017

EU development strategies are aimed at producing growth with “a strong emphasis on job creation and poverty reduction”. But it is unclear whether the economic conditions in EU regions are ideal for the generation of employment and labour market inclusion. This column argues that the quality of public institutions and the endowment of human capital – two key factors behind EU growth strategies – are essential for the reduction of labour market exclusion and the promotion of inclusive employment across Europe.

Yoshio Higuchi, Kozo Kiyota, Toshiyuki Matsuura, 04 December 2016

There is a belief among the general public that employment volatility tends to be greater for firms with higher foreign exposure, but the relationship between the two is ambiguous in theory. This column uses firm-level data for Japan to compare the impact of foreign exposure on employment volatility for multinational, trading, and non-trading firms; for manufacturing and wholesale and retail trade; and for intra-firm and inter-firm trade. In manufacturing, the effect of exports on the volatility of employment varies, depending on the share of intrafirm exports to total sales. In wholesale retail, the effect of exports is generally insignificant. 

Elisa Gamberoni, Katerina Gradeva, Sebastian Weber, 03 December 2016

Employment subsidies have been widely used in OECD countries to counteract the recent job crisis, but their effectiveness is difficult to assess. This column summarises the findings of a recent study analysing a 2012 Spanish employment subsidy given to firms with fewer than 50 employees that make use of a new type of permanent contract. Consistent with other country studies, it fails to find robust evidence for increased employment growth due to the subsidy scheme.

Frank Caliendo, Maria Casanova, Aspen Gorry, Sita Nataraj Slavov, 16 November 2016

Not knowing when you are going to retire can make it hard to plan both savings and consumption in old age. This column examines how much uncertainty people face over their retirement and how costly this is as they attempt to make optimal saving plans. It argues that current structure of the Social Security retirement and disability programmes in the US does not provide much insurance against this uncertainty.

Gilbert Cette, Jimmy Lopez, Jacques Mairesse, 04 November 2016

With structural reforms of labour markets currently being considered in several countries, including in southern Europe, assessing their impact is vital. This column investigates the effects of employment protection legislation on a variety of production factors. Structural reforms that increase labour flexibility – that is, which weaken employment protection legislation – could have a favourable impact on firms’ R&D investment and their hiring of low-skilled workers.

Isamu Yamamoto, 14 October 2016

There is ample empirical evidence showing that poor mental health is increasing, but the impact of this on long-run productivity and its implications for the labour market are not well researched. This column outlines two ways in which labour market research can contribute to the study of the impact on mental health of working conditions. It also identifies several channels related to working conditions that affect mental health, and argues that deteriorating mental health adversely affects corporate performance in the long run.

Enrique Fernández-Macías, Martina Bisello, 25 September 2016

A tasks approach to labour market analysis can contribute to a better understanding of structural change and employment trends. However, its narrow focus on a few specific types of task content and its neglect of the social aspects of production can limit the usefulness of this approach. This column presents a new framework for conceptualising and measuring tasks, and discusses an application to Europe.



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