Contingent, temporary unemployment insuranceàs impacts on employment and unemployment durations

This paper studies contingent, temporary unemployment insurance (UI) coverage's impacts on employment and unemployment durations using a duration model extended with heaping considerations and a recent Canadian panel data. A unique source of identification here is the Employment Insurance (EI) reform of Canada in the 1996. Based on the estimated coefficients from the duration models, the simulations suggest that UI increases unemployment rates by 2% and 5% in the non-seasonal and seasonal sectors respectively

Gender Discrimination in Job Ads: Theory and Evidence

We study firms' advertised gender preferences in a population of ads on a Chinese internet job board, and interpret these patterns using a simple employer search model. The model allows us to distinguish firms’ underlying gender preferences from firms’ propensities to restrict their search to their preferred gender. The model also predicts that higher job skill requirements should reduce the tendency to gender-target a job ad; this is strongly confirmed in our data. We also find that firms' underlying gender preferences are highly job-specific, with many firms requesting men for some jobs and women for others, and with one third of the variation in gender preferences within firm*occupation cells.discrimination, gender, China, internet, search

Economic Reform, Education Expansion, and Earnings Inequality for Urban Males in China, 1988-2007

In the past 20 years the average real earnings of Chinese urban male workers have increased by 350 per cent. Accompanying this unprecedented growth is a considerable increase in earnings inequality. Between 1988 and 2007 the variance of log earnings increased from 0.27 to 0.48, a 78 per cent increase. Using a unique set of repeated cross-sectional data this paper examines the causes of this increase in earnings inequality. We find that the major changes occurred in the 1990s when the labour market moved from a centrally planned system to a market oriented system. The decomposition exercise conducted in the paper identifies the factor that drives the significant increase in the earnings variance in the 1990s to be an increase in the within-education-experience cell residual variances. Such an increase may be explained mainly by the increase in the price of unobserved skills. When an economy shifts from an administratively determined wage system to a market-oriented one, rewards to both observed and unobserved skills increase. The turn of the century saw a slowing down of the reward to both the observed and unobserved skills, due largely to the college expansion program that occurred at the end of the 1990s.earnings inequality, China

Economic Reform, Education Expansion, and Earnings Inequality for Urban Males in China, 1988-2007

In the past 20 years the average real earnings of Chinese urban male workers have increased by 350 per cent. Accompanying this unprecedented growth is a considerable increase in earnings inequality. Between 1988 and 2007 the variance of log earnings increased from 0.27 to 0.48, a 78 per cent increase. Using a unique set of repeated cross-sectional data this paper examines the causes of this increase in earnings inequality. We find that the major changes occurred in the 1990s when the labour market moved from a centrally planned system to a market oriented system. The decomposition exercise conducted in the paper identifies the factor that drives the significant increase in the earnings variance in the 1990s to be an increase in the within-education-experience cell residual variances. Such an increase may be explained mainly by the increase in the price of unobserved skills. When an economy shifts from an administratively determined wage system to a market-oriented one, rewards to both observed and unobserved skills increase. The turn of the century saw a slowing down of the reward to both the observed and unobserved skills, due largely to the college expansion program that occurred at the end of the 1990s.Earnings inequality, China

Do employers prefer migrant workers? Evidence from a Chinese job board

We study urban, private sector Chinese employers' preferences between workers with and without a local permanent residence permit (hukou) using callback information from an Internet job board. We find that these employers prefer migrant workers to locals who are identically matched to the job's requirements; these preferences are strongest in jobs requiring lower levels of education and offering low pay. While migrant-native payroll tax differentials might account for some of this gap, we argue that the patterns are hard to explain without some role for a migrant productivity advantage in less skilled jobs. Possible sources of this advantage include positive selection of nonlocals into migration, negative selection of local workers into formal search for unskilled private sector jobs, efficiency wage effects related to unskilled migrants' limited access to the urban social safety net, and intertemporal labor and effort substitution by temporary migrants that makes them more desirable workers

Do Employers Prefer Undocumented Workers? Evidence from China's Hukou System

We study urban Chinese employers' preferences between workers with and without a local residence permit (hukou) using callback information from an Internet job board serving private sector employers. We find that employers prefer migrant workers to locals who are identically matched to the job's requirements; these preferences are especially strong at low skill levels. We argue that migrants' higher work hours and effort help to account for employers' preferences, and present evidence that efficiency wage and intertemporal labor substitution effects might explain these hours/effort gaps

Employers’ Preferences for Gender, Age, Height and Beauty: Direct Evidence

We study firms’ advertised preferences for gender, age, height and beauty in a sample of ads from a Chinese internet job board, and interpret these patterns using a simple employer search model. We find that these characteristics are widely and highly valued by Chinese employers, though employers’ valuations are highly specific to detailed jobs and occupations. Consistent with our model, advertised preferences for gender, age, height and beauty all become less prevalent as job skill requirements rise. Cross-sectional patterns suggest some role for customer discrimination, product market competition, and corporate culture. Using the recent collapse of China’s labor market as a natural experiment, we find that firms’ advertised education and experience requirements respond to changing labor market conditions in the direction predicted by our model, while firms’ advertised preferences for age, gender, height and beauty do not.

Do Chinese employers avoid hiring overqualified workers? Evidence from an internet job board

Can having more education than a job requires reduce one's chances of being offered the job? We study this question in a sample of applications to jobs that are posted on an urban Chinese website. We find that being overqualified in this way does not reduce the success rates of university-educated jobseekers applying to college-level jobs, but that it does hurt college-educated workers' chances when applying to jobs requiring technical school, which involves three fewer years of education than college. Our results highlight a difficult situation faced by the recent large cohort of college-educated Chinese workers: They seem to fare poorly in the competition for jobs, both when pitted against more-educated university graduates, and when pitted against less-educated technical school graduates

Gender Discrimination in Job Ads: Theory and Evidence

We study firms' advertised gender preferences in a population of ads on a Chinese internet job board, and interpret these patterns using a simple employer search model. The model allows us to distinguish firms' underlying gender preferences from firms' propensities to restrict their search to their preferred gender. The model also predicts that higher job skill requirements should reduce the tendency to gender-target a job ad; this is strongly confirmed in our data, and suggests that rising skill demands may be a potent deterrent to explicit discrimination of the type we document here. We also find that firms' underlying gender preferences are highly job-specific, with many firms requesting men for some jobs and women for others, and with one third of the variation in gender preferences within firm*occupation cells.

Economic reform, education expansion, and earnings inequality for urban males in China, 1988 - 2007

In the past 20 years the average real earnings of Chinese urban male workers have increased by 350 per cent. Accompanying this unprecedented growth is a considerable increase in earnings inequality. Between 1988 and 2007 the variance of log earnings increased from 0.27 to 0.48, a 78 per cent increase. Using a unique set of repeated cross-sectional data this paper examines the causes of this increase in earnings inequality. We find that the major changes occurred in the 1990s when the labour market moved from a centrally planned system to a market oriented system. The decomposition exercise conducted in the paper identifies the factor that drives the significant increase in the earnings variance in the 1990s to be an increase in the within-education-experience cell residual variances. Such an increase may be explained mainly by the increase in the price of unobserved skills. When an economy shifts from an administratively determined wage system to a market-oriented one, rewards to both observed and unobserved skills increase. The turn of the century saw a slowing down of the reward to both the observed and unobserved skills, due largely to the college expansion program that occurred at the end of the 1990s