Matching in thin labour markets: panel data evidence from Finland, 1991-2002

The matching function that postulates a relationship between the flow of new matches and stock of job seekers and vacancies has attracted considerable attention, both theoretical and empirical during the last decade. In this paper the properties of a matching function are examined by using a large panel data set from Finland. The data has a high frequency and it is highly disaggregated, comprising monthly data on 174 work-to-travel areas from a 12-year period between January 1991 and August 2002. We test for density effects, i.e. the importance of the size of markets on matching efficiency. The robustness and importance of our empirical findings are guaranteed by the quality of data. First the data allows us to model matching functions for two different measures of endogenous variables, namely total matches and total outflow from unemployment. Second, we can measure job seekers by their origin, i.e. whether they are unemployed, employed or outside of the labour force. We can thus construct matching models where the measure of job matches and the pool of job searchers are consistent with each other. Third, the data includes information on the composition of the registered job seekers, including age, sex and the share of short- and long-term unemployment. These controls provide interesting information on possible differences in matching rates by these groups.

MINIMALNA PLAĆA I UDIO RADA U PROIZVODNJI: DOKAZI IZ SJEVERNE MAKEDONIJE

The objective of the paper is to understand whether the minimum wage plays a role in the labor share in the manufacturing sector in North Macedonia. We decompose the movements of the labor share into those along a share-capital curve, shifts of this locus, and deviations from it. We use the capital-output ratio, total factor productivity and input prices to capture these factors, while the minimum wage is introduced as an element that shifts the curve. We estimate a panel of 20 manufacturing branches over the period 2012-2019 with FE, IV and system-GMM estimators. We find that the role of the minimum wage for the labor share is industry-specific. In labor-intensive and low-paid industries, it increases workers’ labor share, which corresponds to a complementarity between capital and labor. For capital-intensive branches, it reduces labor share, likely through the job loss channel and along a substitutability between labor and capital. This applies to both branches where foreign investment and heavy industry are integrated.Cilj je članka analizirati ima li minimalna plaća ulogu u udjelu rada u proizvodnom sektoru u Sjevernoj Makedoniji. Kretanja udjela rada rastavljamo na ona duž krivulje dioničkog kapitala, pomake te krivulje i odstupanja od nje. Koristimo se omjerom kapitalnog koeficijenta, ukupnom faktorskom produktivnošću i cijenama ulaznih parametara kako bismo obuhvatili te faktore, dok je minimalna plaća uvedena kao element koji pomiče krivulju. Procjenjujemo popis 20 proizvodnih industrija u razdoblju 2012. – 2019. koristeći se FE, IV i sistemskim GMM procjeniteljima. Smatramo da je uloga minimalne plaće u udjelu rada specifična za industriju. U radno intenzivnim i slabo plaćenim djelatnostima povećava se udio rada zaposlenih, što odgovara komplementarnosti između kapitala i rada. U kapitalno intenzivnim industrijama smanjuje se udio rada, vjerojatno na temelju gubitka radnih mjesta i uz zamjenjivost rada i kapitala. To se odnosi na oba sektora u kojima su integrirana strana ulaganja i teška industrija

Regional Matching Frictions and Aggregate Unemployment

The study shows that a stochastic frontier approach applied to regional level data offers a convenient and interesting method to examine how regional differences in matching efficiency and structural factors contribute to aggregate unemployment. The study finds notable and time-wise stable differences in the matching efficiency across travel-to-work areas in Finland. If all areas were as efficient as the most efficient one, the number of hires would increase about 40 per cent. This would decrease the aggregate unemployment rate from the current 8.5 percent level to 6.0 per cent. If all the areas shared the same structural characteristics as the most favourable area, the aggregate unemployment rate would drop to 7.1 per cent.

Valistuneita arvauksia: talousennusteiden osuvuus 1997-2001

Talousennusteiden tarkkuus ei juuri imartele ennusteita tekeviä tutkimuslaitoksia. Maailmassa, jossa kansantalouksien toimintaan vaikuttavat tapahtumat välittyvät nopeasti yhdestä taloudesta toiseen, tulevaisuuteen vaikuttavien tekijöiden kartoitus ja muutosten ennakointi on tärkeää. Kun ei tiedetä, on varauduttava. Todennäköisin tulema on huomioitava samalla varautuen vaihtoehtoisiin tilanteisiin ja kehityskulkuihin. Jos markkinat toimivat tehokkaasti, niin ennuste, joka sisältää etukäteen tunnetun suhdannekäänteen, on sisäisesti ristiriitainen. Suhdannekäänteiden ennustaminen on siten mahdotonta

Public Sector Pay in Finland

This study analyses the forces determining public and private sector pay in Finland. The data used is a 7 per cent sample taken from the Finnish 2001 census. It contains information on 42 680 male workers, of which 8 759 are employed in public and 33 921 in the private sector. The study documents and describes data by education, occupation and industry. We estimate earnings equations for the whole sample as well as for four industries (construction, real estate, transportation and health) that provide an adequate mix of both public and sector workers. The results suggest that the private-public sector pay gap of about one per cent can be accounted for by differences in observable characteristics between the sectors (3.4 per cent) and lower returns from these characteristics (-2.3 per cent). However, the industry-level analysis indicates that the earnings gaps vary across industries, and are negative in some cases. These inter-industry differences in public-private gaps persist even when the usual controls are introduced. This suggests that public sector wage setters need greater local flexibility, which should result in less uniform wages within the public sector

Young Lads and Old Tars : Changing Age Structure of the Nordic Sailors, 1750s-1930s

This article analyzes the changing age structure of Swedish and Finnish sailors for almost 200 years. We show that the proportion of the youngest men increased during the age of sail (i.e., the older technology). The average age increased significantly during the early twentieth century as steam (i.e., the newer technology) replaced sail in Nordic shipping. Thus, a technological revolution did not displace the older workers, but rather diminished the demand for the younger ones. This study shows, however, that technological changes were not the only drivers of changes in the age structure of Nordic sailors. Institutional and societal changes also played an important role, though they were at least partly coevolving with the technological changes. This study also shows that the maritime industry experienced professionalization especially during the latter part of the period.Peer reviewe

Biomarkers and long-term labour market outcomes: the case of creatine

Using the Young Finns Study (YFS) combined with the Finnish Linked Employer-Employee Data (FLEED) we show that quantities of creatine measured in 1980 prior to labour market entry affect labour market outcomes over the period 1990-2010. Those with higher levels of creatine (proxied by urine creatinine) prior to labour market entry spend more time in the labour market in the subsequent two decades and earn more. Creatine is not associated with high educational attainment. The associations between creatine and labour market outcomes are robust to controlling for other biomarkers, educational attainment and parental background. Creatine is a naturally occurring nitrogenous organic acid which supplies energy to body cells, including muscles. Our findings are consistent with high energy levels, induced by creatine, leading to productivity-enhancing traits such as a high propensity for effort, perseverance, and high-commitment.</div

Schizophrenia polygenic risk score and long-term success in the labour market : A cohort study

Publisher Copyright: © 2022 The AuthorsEmployment is rare among people with a schizophrenia diagnosis. Meanwhile, a genetic liability for schizophrenia may hinder labour market performance. We studied how the polygenic risk score (PGS) for schizophrenia related to education and labour market outcomes. We found that a higher PGS was linked to lower educational levels and weaker labour market outcomes as well as a higher likelihood of receiving social income transfers, particularly among men. Assuming that the link is causal, our results indicate that individuals with schizophrenia or schizophrenia-related traits have a weakened ability to fully participate in the labour market, potentially reinforcing social exclusion.Peer reviewe

Creatine and entrepreneurship

Creatine is a nitrogenous organic acid which supplies energy to body cells and enhances physical performance. Using the Young Finns Study combined with the Finnish Linked employer-employee data we show that quantities of creatine measured in 1980 prior to labour market entry affect entrepreneurial success as measured by capital income accumulation over the period 1993–2010 (in particular for females). However, we do not find evidence that creatine affects the propensity to become an entrepreneur. Our study contributes to the emerging literature on biomarkers and entrepreneurship

Does higher education protect against obesity? Evidence using Mendelian randomization

Objectives. The aim of this explorative study was to examine the effect of education on obesity using Mendelian randomization. Methods. Participants (N = 2011) were from the on- going nationally representative Young Finns Study (YFS) that began in 1980 when six cohorts (aged 30, 33, 36, 39, 42 and 45 in 2007) were recruited. The average value of BMI (kg/m(2)) measurements in 2007 and 2011 and genetic information were linked to comprehensive register based information on the years of education in 2007. We first used a linear regression (Ordinary Least Squares, OLS) to estimate the relationship between education and BMI. To identify a causal relationship, we exploited Mendelian randomization and used a genetic score as an instrument for education. The genetic score was based on 74 genetic variants that genome- wide association studies (GWASs) have found to be associated with the years of education. Because the genotypes are randomly assigned at conception, the instrument causes exogenous variation in the years of education and thus enables identification of causal effects. Results. The years of education in 2007 were associated with lower BMI in 2007/2011 (regression coefficient (b) = -0.22; 95% Confidence Intervals [CI] = -0.29,-0.14) according to the linear regression results. The results based on Mendelian randomization suggests that there may be a negative causal effect of education on BMI (b = -0.84; 95% CI = -1.77, 0.09). Conclusion. The findings indicate that education could be a protective factor against obesity in advanced countries. (C) 2017 Elsevier Inc. All rights reserved.Peer reviewe