An extra time duration model with application to unemployment duration under benefits in Spain

This paper postulates that the effect of unemployment benefits on the hazard rates changes considerably using a traditional duration model that uses only unemployment insurance (UI) data, or deals with unemployment assistance (UA) as a mere extension of UI, instead of an extra time duration model that accounts separately for transition rates to work of the unemployed who receive UI and UA. For UI recipients the hazard rate rises dramatically when UI benefits lapse approaches. On the contrary, for UA recipients the hazard rate remains flat or even has a slight fall nearby the UA lapse. Finally, there is a group of unemployed qualified for UA that quit UI due to the income fall that they will experience when they pass from UI to UA.unemployment benefits mixed proportional hazard model, unobserved heterogeneity

Dual Farrell measures of efficiency

This paper is a revised version of an old 1982 paper by the author, partially published in Spanish as Muro and Vera (1983) and cited for example in Fare (1985). The usual disclaimer appliesThis paper provides several definitions of efficiency measures in the price space. Economic and scale aspects of inefficiency are considered to give empirical content to the measurement of efficiency when the production technology is described by cost functions models. It shows, in the Hanoch’s symmetric duality approach, how the new definitions preserve the ranking of efficiency, are formally dually symmetric to the ones defined in the input space, and both are established with respect to different descriptions of the same technology. In addition, graphical procedures are utilized to make an insight into the achievement of polar technologies from primal ones and into the relationship between Shephard’s lemma and Roy’s identity

Homotheticity, duality and efficiency measures

This paper is a version of an old 1983 paper presented at IV Encuentro hispano-francés de economistas teóricos, Bilbao (1983). All remaining errors are our ownAs a result of the duality of cost and distance functions the efficiency of cost-minimizing behavior can be compared to shadow-prizing behaviour, and conversely. In this framework we outline the form that dual efficiency measures, Muro (1982), Muro and Vera (1983), adopt for homothetic and linearly homogeneous technologies. To illustrate the subject we provide a numerical example for a technology described by a translog cost functio

Diploma earning differences by gender in Colombia

This paper discusses the existence of diploma earnings differences by gender in Colombia with a model of sheepskin effects based on pseudo panel data for the period 1996-2000. Our results show a significant and distinctive effect of high school and university degrees among men and women. Thus, additional earnings associated with a high school degree are higher for women than for men, while additional earnings associated with a university degree are higher for men compared to women in Colombia in the period under consideration

On the size of sheepskin effects : a meta-analysis

We use information gathered from 122 studies on the effects of high school degrees on wages in different countries worldwide to carry out a meta-analysis that shows high school degrees have a statistically significant effect on wages of nearly 8%. This effect varies either when the review is made in countries away from the tropics or when factors such as sex, race, and continent are taken into account. Our results also reveal the existence of a publication bias that tends to increase the magnitude of the sheepskin effect. Nevertheless, when the former is included into the analysis the later remains statistically significant

A cohort-based analysis of the influence of minimum wage levels on labour force participation in the informal sector : quantitative and substitution effects

The authors are thankful for the valuable suggestions of Ximena Dueñas and Luisa Fernanda Bernat at Icesi University, and those who attended the IARIW and CLADEA Conferences. Jhon James Mora acknowledges Icesi University and The National Institute of Science and Technology in Colombia (COLCIENCIAS) for their financial assistance. All remaining errors are ownThis paper discuses the effect of the minimum wage level on the decision to join the informal job sector. We estimate a pseudo panel of the engagement in the informal sector using an IV-probit. The findings show that an increase in the minimum wage level leads to a substitution effect between young and older workers. This results show that the standards effects over the labor market in the WGM segmented model are moderate because an increase of the minimum wage level does not imply total mobility between sectors

Homotheticity, duality and efficiency measures

This paper is a version of an old 1983 paper presented at IV Encuentro hispano-francés de economistas teóricos, Bilbao (1983). All remaining errors are our ownAs a result of the duality of cost and distance functions the efficiency of cost-minimizing behavior can be compared to shadow-prizing behaviour, and conversely. In this framework we outline the form that dual efficiency measures, Muro (1982), Muro and Vera (1983), adopt for homothetic and linearly homogeneous technologies. To illustrate the subject we provide a numerical example for a technology described by a translog cost functio

The Long Run Wage-Employment Elasticity: Evidence from Colombia

Hace algunos años, un conjunto de artículos mostró que la relación entre incrementos salariales y subida del desempleo no es clara en USA. Esta evidencia procedente de USA fue relevante para que Stiglitz opinara que la subida de un 22% del salario mínimo en España no provocaría una reducción del empleo en el año 2018. En nuestra opinión, la evidencia en USA es insuficiente para considerar que esta recomendación puede aplicarse sin más a todos los países, cualesquiera que sean sus circunstancias, Diferencias en regulaciones, instituciones y sistemas de bienestar -en especial en el seguro de desempleo-, entre otras, pueden producir alrededor del mundo diferentes resultados a los evidenciados en USA. Colombia como país en desarrollo, con instituciones que difieren de las de USA tanto en diseño como en su práctica cotidiana, es un buen ejemplo para apreciar los posibles contrastes existentes. En este artículo, analizamos los efectos sobre la demanda de empleo de una elevación de los salarios a partir de información de Colombia. Nuestro meta-análisis muestra que a largo plazo la subida de los salarios en un 1% causa una caída del 0.11% del empleo. Estos resultados son robustos aun cuando se tienen en cuenta los posibles sesgos de publicación.Several years ago, many articles showed that the relationship between wage increases and unemployment rise is not clear in the USA. This USA evidence was important to determine the recommendation of Stiglitz that a 22% increase of the minimum wage in Spain will not reduce the employment in 2018. To our view, the USA evidence is insufficient to consider that this advice can be extended to all countries. Differences in regulations, institutions and welfare systems –mainly unemployment insurance-, among others, may produce around the world different results to the expected outcome in the USA that an increase of the real wages does not provoke an unemployment rise. Colombia as a developing country, with institutions that differ in design and practice from those of the USA, could be a good testing example. In this paper, we analyse the effect of a rise in wages on the demand for employment using Colombian data. Our meta-analysis shows that a 1% real wage increment causes an 0,11% employment fall in the long run. These results stand despite publication biases

A cohort-based analysis of the influence of minimum wage levels on labour force participation in the informal sector : quantitative and substitution effects

The authors are thankful for the valuable suggestions of Ximena Dueñas and Luisa Fernanda Bernat at Icesi University, and those who attended the IARIW and CLADEA Conferences. Jhon James Mora acknowledges Icesi University and The National Institute of Science and Technology in Colombia (COLCIENCIAS) for their financial assistance. All remaining errors are ownThis paper discuses the effect of the minimum wage level on the decision to join the informal job sector. We estimate a pseudo panel of the engagement in the informal sector using an IV-probit. The findings show that an increase in the minimum wage level leads to a substitution effect between young and older workers. This results show that the standards effects over the labor market in the WGM segmented model are moderate because an increase of the minimum wage level does not imply total mobility between sectors

Diploma earning differences by gender in Colombia

This paper discusses the existence of diploma earnings differences by gender in Colombia with a model of sheepskin effects based on pseudo panel data for the period 1996-2000. Our results show a significant and distinctive effect of high school and university degrees among men and women. Thus, additional earnings associated with a high school degree are higher for women than for men, while additional earnings associated with a university degree are higher for men compared to women in Colombia in the period under consideration