The impact of job contact networks on wages of rural–urban migrants in China: a switching regression approach

In nationally representative household data from the 2008 Chinese Rural to Urban Migration Survey, nearly two thirds of rural–urban migrants found their employment through family members, relatives, friends or acquaintances. This paper investigates why the use of social network to find jobs is so prevalent among rural–urban migrants in China, and whether migrants face a wage penalty as a result of adopting this job search method. Using a switch regression approach, we find evidence of positive selection effects of the use of networks on wages. Users of networks tend to be older, to have migrated longer ago and to be less educated. In addition, married workers and those from villages with more out-migrant are more likely to use networks, while those without local residential registration status are less likely. Controlling for selectivity, we find a large negative impact of network use on wages. Using job contacts brings access to urban employment, but at the cost of markedly lower wages

Long-Term Care Responsibility and its Opportunity Costs

This paper analyzes the relationship between long-term care provision and the average individual wage rate. In addition, the effects of the number of hours spent on caregiving on the probability of employment as well as on the number of hours worked are examined. Data from the Survey of Health, Ageing and Retirement (SHARE) of 2004 and 2006 is used to analyze caregiving effects on the European labor market. Descriptive statistics show a positive correlation between hours of care and the wage rate for those working. In the regression analysis, sample-selection models combined with instrumental-variable estimation are used to estimate the causal effects of hours of care on wages. The results illustrate that care for parents has a large negative impact on the individual's wage rate. Test results show that controlling for sample selection is reasonable. Finally, the probability of employment is only decreased in the female sample. Although the hours worked are not significantly affected.Dieses Papier analysiert die Beziehung zwischen Langzeitpflege und dem durchschnittlichen individuellen Lohnsatz potenzieller Pflegepersonen. Außerdem wird der Effekt von pflegestunden auf die Wahrscheinlichkeit, Arbeit anzubieten, sowie auf die Anzahl der Arbeitsstunden untersucht. Daten des Survey of Health, Ageing and Retirement (SHARE) aus den Jahren 2004 und 2006 werden genutzt, um Effekte auf dem europäischen Arbeitsmarkt zu analysieren. Deskriptive Statistiken zeigen eine positive Korrelation zwischen Pflegestunden und Lohnsatz für arbeitende Pflegepersonen. In der Regressionsanalyse werden Selektionsmodelle mit Instrumentenvariablenmethoden kombiniert, um kausale Effekte dazu zu erhalten. Die Ergebnisse veranschaulichen, dass die Pflege von Eltern einen stark signifikant negativen Effekt auf den individuellen Lohnsatz hat. Testergebnisse zeigen, dass es notwendig ist, für Stichprobenselektion zu kontrollieren. Die Wahrscheinlichkeit, Arbeit anzubieten, wird nur in einer Stichprobe aus Frauen gesenkt. Die Arbeitsstunden werden nicht signifikant beeinflusst

Long-Term Care Insurance and Carers' Labor Supply: A Structural Model

In Germany, individuals in need of long-term care receive support through benefits of the long-term care insurance. A central goal of the insurance is to support informal care provided by family members. Care recipients can choose between benefits in kind (formal home care services) and benefits in cash. From a budgetary perspective family care is a cost-saving alternative to formal home care and to stationary nursing care. However, the opportunity costs resulting from reduced labor supply of the carer are often overlooked. We focus on the labor supply decision of family carers and the incentives set by the long-term care insurance. We estimate a structural model of labor supply and the choice of benefits of family carers. We find that benefits in kind have small positive effects on labor supply. Labor supply elasticities of cash benefits are larger and negative. If both types of benefits increase, negative labor supply effects are offset to a large extent

Work and Well-Being of Informal Caregivers in Europe

Informal caregivers provide valuable services to elderly persons with long-term care needs, but the consequences of caregiving on caregivers are not yet fully understood. This paper illustrates the interrelation between caregiving and caregivers' labour force participation, cognitive ability, and health in a simple theoretical model, and estimates the effects of caregiving using panel data from 13 European countries, which allows to analyze the effect of institutions on caregivers' outcomes. The results show that caregiving severely and signicantly reduces caregivers' probability of being employed, but only in countries with few formal care alternatives. Furthermore, caregivers in all countries suffer from worse mental health when caregiving is prompted by poor parental health. The results for the effects of caregiving on physical health and cognitive ability are mixed.Informelle Pflegerinnen und Pfleger leisten einen wertvollen Beitrag zu der Pflege älterer Menschen. Welche Folgen die Erbringung von Pflege auf die pflegende Person hat, ist jedoch noch nicht vollständig bekannt. Diese Studie verdeutlicht den Zusammenhang zwischen Pflegeerbringung, Arbeit, kognitiven Fähigkeiten und Gesundheit in einem theoretischen Modell und schätzt die Auswirkung von Pflegeerbringung anhand von Längsschnittdaten aus 13 europäischen Ländern. Dabei wird insbesondere der Einfluss institutioneller Faktoren auf die Auswirkungen von Pflegeerbringung analysiert. Die Ergebnisse zeigen, dass Pflegeerbringung die Erwerbstätigkeit in Ländern mit einem geringeren professionellen Pflegeangebot stark reduziert. Dagegen leiden in allen Ländern pflegende Personen häufiger an depressiven Symptomen. Die Ergebnisse für kognitive Fähigkeiten und Gesundheit sind gemischt

Informal Home Care and Labor Force Participation of Household Members

In Germany, informal home care is preferred to professional care services in the public discussion as well as in legal care regulations. However, they ascribe only minor importance to the opportunity costs care givers have to face. Therefore, this paper explores the influence home care has on the labor supply of carers who live together with their care recipient. I am using the German Socio-Economic Panel of the years 2001 to 2007 which allows the characteristics of both groups to be merged. Furthermore, I look at female and male care givers separately. The results show that having an individual in need of care in the household does not decrease labor supply to an economically relevant extent. As caring and the labor supply decision might be endogenous, I test for endogeneity by using characteristics of care recipients as instruments and I look at sample attrition. In addition, the panel structure allows to control for unobserved heterogeneity, which is probably strong for care

Entry and Exit Strategies in Migration Dynamics

This work is devoted to study the role of combined entry and exit strategies in the migration process. We develop a real option model in which the community of immigrants in the host country is described as a club and the immigrants benefits is a U-shaped function, depending on the dimension of the district. There exist two threshold levels: the first one triggers the migration choice, while the second triggers the return to the country of origin. The theoretical results show that the phenomenon of hysteresis is amplified by the existence of a community both in the entry case and in the exit case. Furthermore, the community can reduce the minimum wage level required to trigger both exit and entry: this fact could explain why in some cases we observe migration inflows with a low wage differential and also with underunemployment. We show also some possible further extensions of the model: in one case we introduce a possible way to select the entrants skills and in another case we show some theoretical implementations to include possible policy shocks in the migrants choice

Long-Term Care Reform and the Labor Supply of Household Members Evidence from a Quasi-Experiment

Germany introduced a new mandatory insurance for long-term care in 1995. It replaced a system based on means-tested transfers. The new scheme made it easier for households to draw benefits and to organize informal care. We exploit this reform as a natural experiment and examine its effect on the labor supply of caregivers who live in the same household as the care recipient. We find strong negative results for male labor supply but not for women. We conduct a set of robustness tests and our results prove to be stable