Unequal pay or unequal employment? What drives the skill-composition of labor flows in Germany?

This paper examines the determinants of gross labour flows in a context where modeling the migration decision as a wage-maximizing process may be inadequate due to regional wage rigidities that result from central wage bargaining. In such a context, the framework that has been developed by Borjas et al. (1992) on the selectivity of internal migrants with respect to skills has to be extended to allow migrants to move to regions that best reward their skills in terms of both wages and employment. The extended framework predicts skilled workers to be disproportionately attracted to regions with higher mean wages and employment rates as well as higher regional wage and employment inequalities. Estimates from a labour flow fixed effects model and a GMM estimator show that these predictions hold, but only the effects for mean employment rates and employment inequality are robust and significant. The paper may thus be able to explain why earlier attempts to explain skill selectivity in Europe within a pure wage-based approach failed to replicate the US results. --gross migration,selectivity,wage inequality,employment inequality

Oral History Interview: Gregory Terry

This interview is one of a series conducted concerning the history of Marshall University. This interview deals with the student politics at Marshall from 1965 to 1969, during which Greg Terry was active in student government, and the debate over student protests and recognition for the Students of a Democratic Society at Marshall. Mr. Terry also discusses: his background; President of Marshall University Dr. Stewart Smith; other people such as Paul Warren and Presidents of Marshall Dr. Nelson (Roland Nelson?) Dr. Smith, and also several newspapers.https://mds.marshall.edu/oral_history/1248/thumbnail.jp

When the minimum wage bites back : quantile treatment effects of a sectoral minimum wage in Germany

In this study we investigate the minimum wage (MW) effects for a German sub-construction sector where the MW bites extraordinary hard by international standards. Within a quasiexperiment we estimate the Quantile Treatment Effects of the MW on the conditional and unconditional distribution of earnings. For Eastern Germany, the results indicate significant real (nominal) wage increases that ripple up to about the 0.6th quantile. However, the MW also led to declining real wages (stagnating nominal wages) among upper-decile workers, thus reducing the average pay reward for high-skilled labour in the sector. We provide evidence that a rising labour cost burden for firms together with an increased bargaining power of employers over workers still employed in the sector led to wage moderation at the upper decile, particularly among smaller East German firms. Overall this paper demonstrates how a MW geared towards the lower rank may render unexpected side effects for other workers located higher up in the wage distribution and who are mostly assumed to be unaffected by such policy interventions

Unequal Pay or Unequal Employment? What Drives the Self-Selection of Internal Migrants in Germany?

This paper examines the determinants of internal migration in a context where wages tend to be rather inflexible at a regional scale so that regional labor demand shocks have a prolonged impact on employment rates. Regional income differentials, then, reflect both regional pay and employment differentials. In such a context, migrants tend to move to regions that best reward their skills in terms of both of these dimensions. As an extension to the Borjas framework, the paper thus hypothesizes that regions with a low employment inequality attract more unskilled workers compared to regions with unequal employment chances. By estimating a migration model for the average skill level of gross labor flows between 27 German regions, we find evidence in favor of this hypothesis. While rising employment inequality in a region raises the average skill level of an in-migrant, higher pay inequality in a region does not have a significant impact on the average skill level of its in-migrants. A higher employment inequality in Eastern as compared to Western Germany may, thus, be the missing link to explain the fact that East-West migrants tend to be rather unskilled.

What old stagers could teach us : examining age complementarities in regional innovation systems

Concerns have been raised that demographic ageing may weaken the competitiveness of knowledge-based economies and increase regional disparities. The age-creativity link is however far from clear at the aggregate level. Contributing to this debate, we estimate the causal effect of the workforce age structure on patenting activities for local labour markets in Germany using a flexible knowledge production function and accounting for potential endogeneity of the regional workforce structure. Overall, our results suggest that younger workers boost regional innovations, but this effect partly hinges on the presence of older workers as younger and older workers turn out to be complements in the production of knowledge. With demographic aging mainly increasing the older workforce and shrinking the younger one, our results imply that innovation levels in ageing societies may drop in the future. Moreover, differences in the regional age structure currently explain around a sixth of the innovation gap across German regions

Unequal Pay or Unequal Employment? What Drives the Self-Selection of Internal Migrants in Germany?

This paper examines the determinants of internal migration in a context where wages tend to be rather inflexible at a regional scale so that regional labor demand shocks have a prolonged impact on employment rates. Regional income differentials, then, reflect both regional pay and employment differentials. In such a context, migrants tend to move to regions that best reward their skills in terms of both of these dimensions. As an extension to the Borjas framework, the paper thus hypothesizes that regions with a low employment inequality attract more unskilled workers compared to regions with unequal employment chances. By estimating a migration model for the average skill level of gross labor flows between 27 German regions, we find evidence in favor of this hypothesis. While rising employment inequality in a region raises the average skill level of an in-migrant, higher pay inequality in a region does not have a significant impact on the average skill level of its in-migrants. A higher employment inequality in Eastern as compared to Western Germany may, thus, be the missing link to explain the fact that East-West migrants tend to be rather unskilled

ELS issues in robotics and steps to consider them. Part 1: Robotics and employment. Consequences of robotics and technological change for the structure and level of employment

Recent advances in the field of digitization and robotics, such as driverless cars, largely autonomous smart factories, service robots or 3D printing, give rise to public fears that technology may substitute for labor on a grand scale. Against this background, the report reviews the existing literature on the employment effects of technological change to derive policy implications and to identify open research questions. We highlight that past technological change has mostly affected the structure of employment, but had only little or even positive effects on the level of employment. In particular, the recent computerization was associated with a declining share of routine-task-intensive middle-skill jobs, while, on net, it has led to an increase of labor demand. The scientific evidence further suggests that technological change in the foreseeable future will continue to mostly affect the structure of labor demand without necessarily changing total employment much. As we argue, the main challenge for the future of work lies in coping with rising inequality, as technological change creates both winners and losers. Policy makers should focus on the qualifications of the workers to ensure that workers' skills match future skill requirements. However, we highlight that there remain many open research questions regarding the need for policy responses, the effectiveness of alternative measures, as well as which skills will be required in the near future.This report has been produced for the Partnership for Robotics SPARC in Europe via RockEU: Robotics Coordination Action for Europe, a Coordination and Support Action (CSA) project that has received funding by under the EU FP7 research and innovation programme (grant agreement 611247). - RockEU: Robotics Coordination Action for Europe. Grant Agreement Number: 611247. 17.01.2013 - 16.07.2016. Instrument: Coordination and Support Action. Deliverable D3.4.1. - part 1

Unequal pay or unequal employment? : What drives the skill-composition of labor flows in Germany?

This paper examines the determinants of gross labour flows in a context where modeling the migration decision as a wage-maximizing process may be inadequate due to regional wage rigidities that result from central wage bargaining. In such a context, the framework that has been developed by Borjas et al. (1992) on the selectivity of internal migrants with respect to skills has to be extended to allow migrants to move to regions that best reward their skills in terms of both wages and employment. The extended framework predicts skilled workers to be disproportionately attracted to regions with higher mean wages and employment rates as well as higher regional wage and employment inequalities. Estimates from a labour flow fixed effects model and a GMM estimator show that these predictions hold, but only the effects for mean employment rates and employment inequality are robust and significant. The paper may thus be able to explain why earlier attempts to explain skill selectivity in Europe within a pure wage-based approach failed to replicate the US results

The minimum wage affects them all: evidence on employment spillovers in the roofing sector

This paper contributes to the sparse literature on employment spillovers on minimum wages by exploiting the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution

An Infrared Study of the Circumstellar Material Associated with the Carbon Star R Sculptoris

The asymptotic giant branch (AGB) star R Sculptoris (R Scl) is one of the most extensively studied stars on the AGB. R Scl is a carbon star with a massive circumstellar shell ($M_{shell}\sim 7.3\times10^{-3}~M_{\odot}$) which is thought to have been produced during a thermal pulse event $\sim2200$ years ago. To study the thermal dust emission associated with its circumstellar material, observations were taken with the Faint Object InfraRed CAMera for the SOFIA Telescope (FORCAST) at 19.7, 25.2, 31.5, 34.8, and 37.1 $\mu$m. Maps of the infrared emission at these wavelengths were used to study the morphology and temperature structure of the spatially extended dust emission. Using the radiative transfer code DUSTY and fitting the spatial profile of the emission, we find that a geometrically thin dust shell cannot reproduce the observed spatially resolved emission. Instead, a second dust component in addition to the shell is needed to reproduce the observed emission. This component, which lies interior to the dust shell, traces the circumstellar envelope of R Scl. It is best fit by a density profile with $n \propto r^{\alpha}$ where $\alpha=0.75^{+0.45}_{-0.25}$ and dust mass of $M_d=9.0^{+2.3}_{-4.1}\times10^{-6}~M_{\odot}$. The strong departure from an $r^{-2}$ law indicates that the mass-loss rate of R Scl has not been constant. This result is consistent with a slow decline in the post-pulse mass-loss which has been inferred from observations of the molecular gas.Comment: 10 pages, 10 figures, accepted to Ap