Is there an informal employment wage premium? Evidence from Tajikistan

This paper defines informal sector employment and decomposes the difference in earnings distributions between formal and informal sector employees in Tajikistan for 2007. Using the quantile regression decomposition technique proposed by Machado and Mata (2005), we find a significant informal employment wage premium across the whole earnings distribution. This contrast with earlier studies and casts doubt on the recent literature showing that the informal sector is poorly rewarded. It seems to be the case that the informal employment in Tajikistan is the main source of income

Returns to education in Russia: Where there is risky sexual behaviour there is also an instrument

Finding an instrument that is orthogonal to the disturbance term in the wage equation has been a topic of great deal of debate. Recently, Chesson et al. (2006) proposed that higher discount rates are significantly associated with a range of sexual behaviours, including having sex before age of 16 years. Following their paper, we use unprotected sexual behaviour and earlier age of sexual intercourse as alternative instrumental variables to account for endogeneity in schooling. The Bound et al. (1995) F-test indicates that our instruments are strongly correlated with schooling. We fail to reject the test of over-identifying restrictions, which demonstrates that the proposed instruments are valid and not correlated with the current earnings. In line with previous studies, our results suggest that the IV estimates of the returns to schooling are higher than the OLS estimates. In addition to the conditional mean, the proposed instruments are applied over the wage distribution using Chernozhukov and Hansen (2008) instrumental variable quantile approach

Work-Related Health in Europe: Are Older Workers More at Risk?

This paper uses the fourth European Working Conditions Survey (2005) to address the impact of age on work-related self-reported health outcomes. More specifically, the paper examines whether older workers differ significantly from younger workers regarding their job-related health risk perception, mental and physical health, sickness absence, probability of reporting injury and fatigue. Accounting for the 'healthy worker effect', or sample selection – in so far as unhealthy workers are likely to exit the labour force – we find that as a group, those aged 55-65 years are more 'vulnerable' than younger workers: they are more likely to perceive work-related health and safety risks, and to report mental, physical and fatigue health problems. As previously shown, older workers are more likely to report work-related absence.endogeneity, fatigue, absence, physical health, mental health, healthy worker selection effect

Is there an informal employment wage premium? Evidence from Tajikistan

This paper defines informal sector employment and decomposes the difference in earnings between formal and informal sector employees in Tajikistan for 2007. Using quantile regression decomposition technique proposed by JAE, 20:445-465, 2005and considering self-selection of individuals into different employment types, we find a significant informal employment wage premium across the whole earnings distribution. Taking advantage of RES, 90:290-299, 2008matching approach and considering the possibility of misleading results due to different observed characteristics of formal and informal workers, we still find a wage gap in favour of informal sector workers

Work-related health in Europe: Are older workers more at risk?

This paper uses the fourth European Working Conditions Survey (2005) to address the impact of age on work-related self-reported health outcomes. More specifically, the paper examines whether older workers differ significantly from younger workers regarding their job-related health risk perception, mental and physical health, sickness absence, probability of reporting injury and fatigue. Accounting for the 'healthy worker effect', or sample selection in so far as unhealthy workers are likely to exit the labour force we find that as a group, those aged 55-65 years are more 'vulnerable' than younger workers: they are more likely to perceive work-related health and safety risks, and to report mental, physical and fatigue health problems. As previously shown, older workers are more likely to report work-related absence

Work-related health risks in Europe: Are older workers more vulnerable?

Recent policy reforms in a number of countries are extending working lives and deferring the statutory retirement age. Yet such changes may have profound implications for the well-being of older workers if such individuals are more likely to suffer work-related health problems. Using international data from the European Working Conditions Survey for 2005, we test whether older workers (aged 55–65 years) differ significantly from younger workers across a range of self-reported job-related indicators including health risk perception, mental and physical health, sickness absence, injury and fatigue. We estimate discrete choice (probit) models of the outcomes above for a sample comprising 17,459 individuals in 23 countries, and control for personal, job and work characteristics including exposure to physical, ergonomic and psychosocial risk factors. Our results show that failure to account for both endogeneity and the ‘healthy worker effect’ (sample selection) can lead to misleading inferences. The latter is especially important: only after controlling for selection bias (using a re-weighting approach) do we find older workers are more ‘vulnerable’ than their younger counterparts in the sense of being significantly more likely to perceive each of the various adverse health outcomes above, with the exception of injury. For the remaining indicators, our estimates suggest the magnitude of this difference is substantial: between 5 and 11 percentage points compared with prime age workers, and 8 and 14 points relative to workers aged 15–35, depending on the measure under consideration

NILS Working paper no 169. Work-related health in Europe: are older workers more at risk?

This paper uses the fourth European Working Conditions Survey (2005) to address the impact of age on work-related self-reported health outcomes. More specifically, the paper examines whether older workers differ significantly from younger workers regarding their job-related health risk perception, mental and physical health, sickness absence, probability of reporting injury and fatigue. Accounting for the healthy worker effect, or sample selection, in so far as unhealthy workers are likely to exit the labour force, we find that as a group, those aged 55-65 years are more vulnerable than younger workers: they are more likely to perceive work-related health and safety risks, and to report mental, physical and fatigue health problems. As previously shown, older workers are more likely to report work-related absence