Managers of China's state-owned firms work in a closed pyramidal managerial labor market. They enjoy non-transferable benefits if they choose to stay within this system. The higher up are they in ...this labor market hierarchy (their political ranks), the fewer are their outside employment opportunities. Due to career and wealth concerns, they are cautious and risk-averse when managing firms. We examine the effect of managers' political ranks on firms' stock price crash risk and find a negative association. This association mainly exists in firms with younger managers and managers with shorter tenure. Further, this effect is only significant in regions with weak market forces, in firms without foreign investors, without political connections, and during periods with no local government leaders' or managers' political promotions. We conclude that the political ranking system reduces the stock price crash risk.
Understanding whether labor market discrimination explains inferior labor market outcomes for many groups has drawn the attention of labor economists for decades—at least since the publication of ...Gary Becker’s The Economics of Discrimination in 1957. The decades of research on discrimination in labor markets began with a regression-based “decomposition” approach, asking whether raw wage or earnings differences between groups—which might constitute prima facie evidence of discrimination—were in fact attributable to other productivity-related factors. Subsequent research—responding in large part to limitations of the regression-based approach—moved on to other approaches, such as using firm-level data to estimate both marginal productivity and wage differentials. In recent years, however, there has been substantial growth in experimental research on labor market discrimination—although the earliest experiments were done decades ago. Some experimental research on labor market discrimination takes place in the lab. But far more of it is done in the field, which makes this particular area of experimental research unique relative to the explosion of experimental economic research more generally. This paper surveys the full range of experimental literature on labor market discrimination, places it in the context of the broader research literature on labor market discrimination, discusses the experimental literature from many different perspectives (empirical, theoretical, and policy), and reviews both what this literature has taught us thus far, and what remains to be done.
I examine the role of geography in the market for CEOs and find that firms hire locally five times more often than expected if geography were irrelevant to the matching process. This local matching ...bias is widespread and exists even among the largest U.S. firms. Tests reveal that both labor supply and demand influence local matching. Compensation and unforced turnover are lower for local than for nonlocal CEOs, and the compensation of local CEOs depends on local labor market factors, unlike that of nonlocal CEOs. These findings suggest the presence of market segmentation and contrast with much of the prior literature, which explicitly or implicitly assumes a single national market.
This paper was accepted by Lauren Cohen, finance
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In this essay, I begin by identifying the reasons that automation has not wiped out a majority of jobs over the decades and centuries. Automation does indeed substitute for labor--as it is typically ...intended to do. However, automation also complements labor, raises output in ways that leads to higher demand for labor, and interacts with adjustments in labor supply. Journalists and even expert commentators tend to overstate the extent of machine substitution for human labor and ignore the strong complementarities between automation and labor that increase productivity, raise earnings, and augment demand for labor. Changes in technology do alter the types of jobs available and what those jobs pay. In the last few decades, one noticeable change has been a "polarization" of the labor market, in which wage gains went disproportionately to those at the top and at the bottom of the income and skill distribution, not to those in the middle; however, I also argue, this polarization and is unlikely to continue very far into future. The final section of this paper reflects on how recent and future advances in artificial intelligence and robotics should shape our thinking about the likely trajectory of occupational change and employment growth. I argue that the interplay between machine and human comparative advantage allows computers to substitute for workers in performing routine, codifiable tasks while amplifying the comparative advantage of workers in supplying problem-solving skills, adaptability, and creativity.
Farmers throughout the United States report a shortage of workers. At the same time, there are proposals to strengthen the enforcement of existing immigration laws. In this paper, we develop an ...equilibrium approach to examine the impact of removing undocumented workers from the California agricultural labor market, and to infer whether there is evidence of shortages using individual-worker data. We find evidence that is consistent with a persistent shortage in some sub-sectors of the California farm labor market. Further, we conduct counter-factual policy simulations over a range of possible policy alternatives, and find that removing 50% all undocumented farm workers from the state would lead to an increase in wages of over 22%.
Immigration controls are often presented by government as a means of ensuring 'British jobs for British workers' and protecting migrants from exploitation. However, in practice they can undermine ...labour protections. As well as a tap regulating the flow of labour, immigration controls function as a mould, helping to form types of labour with particular relations to employers and the labour market. In particular, the construction of institutionalised uncertainty, together with less formalised migratory processes, help produce 'precarious workers' over whom employers and labour users have particular mechanisms of control.
We develop a specific-factors model of regional economies that includes two types of workers, skilled and unskilled. The model delivers a simple equation relating trade-induced local shocks to ...changes in local skill premia. We apply the methodology to Brazil's early 1990s trade liberalization and find statistically significant but modest effects of liberalization on the evolution of the skill premium between 1991 and 2010. The methodology uses widely available household survey data and can easily be applied to other countries and liberalization episodes.
This paper contributes to the continuing debates on the mechanisms driving labor market informality in developing countries by proposing an innovative way to discriminate between segmented and ...competitive markets. An empirical analysis is applied to Egyptian paid employment in the highly dynamic context of 1998–2006.
The study is based on recent nonparametric methods applied to estimate the model with essential heterogeneity. The model is extended to decomposing the treatment effects into unobserved and observed components.
The results show triple heterogeneity of workers on the Egyptian labor market, offering support to both segmented and competitive views on informal labor.
Uber, the ride-sharing company launched in 2010, has grown at an exponential rate. Using both survey and administrative data, the authors provide the first comprehensive analysis of the labor market ...for Uber’s driver-partners. Drivers appear to be attracted to the Uber platform largely because of the flexibility it offers, the level of compensation, and the fact that earnings per hour do not vary much based on the number of hours worked. Uber’s driver-partners are more similar in terms of their age and education to the general workforce than to taxi drivers and chauffeurs. Most of Uber’s driver-partners had full- or part-time employment before joining Uber, and many continue in those positions after starting to drive with the Uber platform, which makes the flexibility to set their own hours especially valuable. Drivers often cite the desire to smooth fluctuations in their income as one of their reasons for partnering with Uber.
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