Growth in euro area labour quality

Composition of the euro area workforce evolves over time and in response to changing labour market conditions. We construct an estimate of growth in euro area labour quality over the period 1983-2004 and show that labour quality has grown on average by 0.6% year-on-year over this time period. Labour quality growth was significantly higher in the early 1990s than in the 1980s. This strong increase was driven by an increase in the share of those with tertiary education and workers in prime age. Growth in labour quality moderated again towards the end of the 1990’s, possibly reflecting the impact of robust employment growth resulting in the entry of workers with lower human capital. Labour quality growth has on average accounted for nearly one third of euro area labour productivity growth. The results point to a significant decline in the contribution of total factor productivity to euro area growth. JEL Classification: E24, J24, O47growth accounting, Human capital, labour quality, total factor productivity

Migration Background and Educational Tracking: Is there a Double Disadvantage for Second-Generation Immigrants?

Research on immigrants’ educational disadvantages largely focuses on differences in student achievement tests. Exploiting data from the German PIRLS extension, we find that second-generation immigrants face additional disadvantages with respect to grades and teacher recommendations for secondary school tracks that cannot be explained by differences in student achievement tests and general intelligence. Second-generation immigrations are disproportionately affected by prevailing social inequalities at the transition to secondary school tracks due to their generally less favorable socio-economic background. We additionally provide new evidence suggesting that these inequalities might be related to the failing economic assimilation of immigrants.immigration, educational inequalities, educational tracking, Germany

Labor Quality Growth in Germany

Extending the common baseline model in various dimensions does not fundamentally change the low contribution of labor quality to productivity growth in Germany. Labor quality growth is low owing to a small increase in the share of workers with higher education, a negative contribution from a higher share of females and declines in relative returns. The contribution of actual labor market experience is lower than suggested by an age proxy.Human capital, labour quality, productivity growth

The Impact of Alternative Grade Configurations on Student Outcomes through Middle and High School

We use statewide administrative data from Florida to estimate the impact of attending public schools with different grade configurations on student achievement through grade 10. Based on an instrumental variable estimation strategy, we find that students moving from elementary to middle school suffer a sharp drop in student achievement in the transition year. These achievement drops persist through grade 10. We also find that middle school entry increases student absences and is associated with higher grade 10 dropout rates. Transitions to high school in grade nine cause a smaller one-time drop in achievement but do not alter students' performance trajectories.educational production, public schools, grade configuration, middle schools, high schools

Is Traditional Teaching really all that Bad? A Within-Student Between-Subject Approach

Recent studies conclude that teachers are important for student learning but it remains uncertain what actually determines effective teaching. This study directly peers into the black box of educational production by investigating the relationship between lecture style teaching and student achievement. Based on matched student-teacher data for the US, the estimation strategy exploits between-subject variation to control for unobserved student traits. Results indicate that traditional lecture style teaching is associated with significantly higher student achievement. No support for detrimental effects of lecture style teaching can be found even when evaluating possible selection biases due to unobservable teacher characteristics.teaching practices, educational production, TIMSS, between-subject variation

The Impact of Alternative Grade Configurations on Student Outcomes through Middle and High School

We use statewide administrative data from Florida to estimate the impact of attending public schools with different grade configurations on student achievement through grade 10. To identify the causal effect of structural school transitions, we use student fixed effects and instrument for middle and high school attendance based on the terminal grade of the school attended in grades 3 and 6, respectively. Consistent with recent evidence from other settings, we find that students moving from elementary to middle school in grade 6 or 7 suffer a sharp drop in student achievement in the transition year. We confirm that these achievement drops occur in nonurban areas and persist through grade 10, by which time most students have transitioned into high school. We also find that middle school entry increases student absences and is associated with higher grade 10 dropout rates. Transitions to high school in grade nine cause a smaller one-time drop in achievement but do not alter students’ performance trajectories.educational production, public schools, grade configuration, middle schools, high schools

Four Essays in Applied Microeconometrics.

no abstract availableMicroeconomics;

Labor Turnover before Plant Closure:'Leaving the sinking ship' vs. 'Captain throwing ballast overboard'

Involuntary job loss in administrative data is commonly identified by focusing on mass-layoffs or plant closures. However, such events usually do not happen without prior knowledge, which potentially leads to selection in the labor turnover of distressed firms. We find that workers separating from closing plants up to 2 quarters before closure are associated with significantly lower displacement costs and on average significantly higher pre-closure earnings levels as opposed to ultimately displaced workers. Furthermore, our results indicate that displaced workers with high pre-closure earnings experience significantly lower reductions in future employment probabilities. These findings suggest that compositional differences cause estimated displacement costs to differ between early leavers and ultimately displaced workers. Focusing exclusively on the latter group would lead to an overestimation of displacement costs.plant closure, labor turnover, exact-matching, employer-employee data

Econometric Methods for Causal Evaluation of Education Policies and Practices: A Non-Technical Guide

Education policy-makers and practitioners want to know which policies and practices can best achieve their goals. But research that can inform evidence-based policy often requires complex methods to distinguish causation from accidental association. Avoiding econometric jargon and technical detail, this paper explains the main idea and intuition of leading empirical strategies devised to identify causal impacts and illustrates their use with real-world examples. It covers six evaluation methods: controlled experiments, lotteries of oversubscribed programs, instrumental variables, regression discontinuities, differences-indifferences, and panel-data techniques. Illustrating applications include evaluations of early-childhood interventions, voucher lotteries, funding programs for disadvantaged, and compulsory-school and tracking reforms.causal effects, education, policy evaluation, non-technical guide

Econometric Methods for Causal Evaluation of Education Policies and Practices: A Non-Technical Guide

Education policy-makers and practitioners want to know which policies and practices can best achieve their goals. But research that can inform evidence-based policy often requires complex methods to distinguish causation from accidental association. Avoiding econometric jargon and technical detail, this paper explains the main idea and intuition of leading empirical strategies devised to identify causal impacts and illustrates their use with real-world examples. It covers six evaluation methods: controlled experiments, lotteries of oversubscribed programs, instrumental variables, regression discontinuities, differences-in-differences, and panel-data techniques. Illustrating applications include evaluations of early-childhood interventions, voucher lotteries, funding programs for disadvantaged, and compulsory-school and tracking reforms.policy evaluation, education, causal effects, non-technical guide