Labour (actually useful) Empirics term 1 Flashcards
Wages on sleep
Biddle and Hamermesh (1990):
w up 20% implies sleep down 34 minutes / week, despite no clear substitutes.
Phasing out of benefits UK
EMTR of roughly 80%! This is the unemployment trap
NIT
Friedman, 1962
NIT empirics
US Gov 1970s (Seattle). Single mothers enter at extensive margin. Husbands / wives drawn into benefits system.
NIT can be welfare max despite drawing in to benefits system effect (Fortin et al 1993)
Manipulate budget constraint
Theoretically impossible to devise a budget constraint (fixed expenditure) which will unambiguously lead to Ls up. (Moffitt, 2003)
Household based system of tax / benefits
Will have effect on incentives of family structure (Alm et al 1999)
Evidenced by Moffitt (2003) on support for single mothers
Work requirement
Blundell and Shephard (2010): Min 24 to 16 UK. Effects both ways (draw diagram). ‘Employability’ must be chosen and tagged by gov (Akerlof 1978). Subjective, continuous, perverse incentives
EITC USA
(since 1975)
Eissa and Liebman 1996: Phase in: DiD of 2.4% on participation rate of single mothers.
Bunching at kinks of a progressive tax system
Saez (2010)
Effect of childcare of child development
Ambiguous: Neg on behaviour? (Baker et al, 2008) / pos on performance in Scandinavia (Black et al, 2011)
Against pooling?
Justifies what models
Redistribution from father to mother: Lundberg, Pollack, Wales 1997.
Weighting with bargaining power (Chiappori et al, 1988)
Economic incentives on fertility
Gans et al (2009): Baby boom following $3,000 bonus if born after July 1, 2004 in Australia
Skill complementarity hypothesis
Low skilled workers are sub for capital, but high skill are complements.
Skill biased tech change?
Acemoglu, 1998
Card, 1990
Mariel boat lift: Influx of 125,000 Cubans to Miami 1980. Suggest caused 1% Ue fall for blacks
