<abstract xmlns="http://www.w3.org/1999/xhtml">The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this financial support is accompanied by adjustments to parental consumption, income, or savings behavior. With longitudinal data on mothers and children from the Panel Study of Income Dynamics, we use within-mother variation in behavior to identify the effect of a child’s labor market shock on parent outcomes. We find evidence of a decline in consumption, an increase in labor supply, and a decrease retirement savings, though the results are heterogenous among mothers. Our results point to aggregate inefficiencies and inequities that may result from family risk sharing.</abstract>

Parents with an Unemployed Adult Child: Consumption, Income, and Savings Effects

<abstract xmlns="http://www.w3.org/1999/xhtml">This paper examines the impacts of the introduction of the UK National Minimum Wage (NMW) in 1999 and the introduction of the UK National Living Wage (NLW) in 2016 in Northern Ireland (NI) on employment and hours. NI is the only part of the UK with a land border where the NMW and NLW cover those working on one side of the border but not those working on the other side of the border (i.e., Republic of Ireland). This discontinuity in minimum wage coverage enables a research design that estimates the impacts of the NMW and NLW on employment and hours worked using difference-in-differences estimation. We find a small decrease in the employment rate of 22–59/64-year-olds in NI, of up to 2% points, in the year following the introduction of the NMW, but no impact on hours worked. We find no clear evidence that the introduction of the NLW impacted either employment or hours worked in NI.</abstract>

Exploiting the Irish Border to Estimate Minimum Wage Impacts in Northern Ireland

<abstract xmlns="http://www.w3.org/1999/xhtml">Aggregate wages display little cyclicality compared to what a standard model would predict. Wage rigidities are an obvious candidate, but the existing literature has emphasized the need to take into account the growing importance of worker composition effects, especially during downturns. This paper seeks to understand the role of firm heterogeneity for aggregate wage dynamics with reference to the Italian case. Using a newly available dataset based on social security records covering the universe of Italian employers between 1990 and 2015, we document that firm composition effects increasingly matter in explaining aggregate wage growth and largely reflect shifts of labor from low-paying to high-paying firms, especially in the most recent years. We find that changes in reallocation of workers across firms accounted for approximately one-fourth of aggregate wage growth during the crisis.</abstract>

Reallocation and the Role of Firm Composition Effects on Aggregate Wage Dynamics

<abstract xmlns="http://www.w3.org/1999/xhtml">This paper studies the relationship between a vacancy population obtained from web crawling and vacancies in the economy inferred by a National Statistics Office (NSO) using a traditional method. We compare the time series properties of samples obtained between 2007 and 2014 by Statistics Netherlands and by a web scraping company. We find that the web and NSO vacancy data present similar time series properties, suggesting that both time series are generated by the same underlying phenomenon: the real number of new vacancies in the economy. We conclude that, in our case study, web-sourced data are able to capture aggregate economic activity in the labor market.</abstract>

Survey vs Scraped Data: Comparing Time Series Properties of Web and Survey Vacancy Data

<abstract xmlns="http://www.w3.org/1999/xhtml">This article analyzes the behavioral effects of cash transfer programs when jobless people need to have access to a minimum consumption level. Our model reconciles recent evidence about negligible or favorable effects of cash transfers on job-finding rates and the more standard view of negative effects. When unemployment compensation, if any, is low enough, we argue that cash transfer programs can raise the hiring probability. Our framework is flexible enough to generate the standard conclusion as well. Looking specifically at unemployment compensation, its optimal level is generally higher than when a lower bound on consumption is ignored.</abstract>

Why Cash Transfer Programs Can Both Stimulate and Slow Down Job Finding

AHEAD OF PRINT

Volume 12 (2023): Issue 1 (January 2023)

Volume 11 (2022): Issue 1 (January 2022)

Volume 10 (2021): Issue 1 (January 2021)

Volume 9 (2020): Issue 1 (March 2020)

Volume 8 (2019): Issue 1 (June 2019)

IZA Journal of Labor Economics

Please note that the IZA Journal of Labor Economics will be discontinued in 2023.  We do no longer accept new submissions.  Published volumes will remain fully accessible.  If you have any questions or concerns please contact us atjournals@iza.org. View our back issues (2012–March 2019) Welcome to the IZA Journal of Labor Economics. The IZA Journal of Labor Economics publishes scientific articles in all areas of labor economics. This refers to original high-quality theoretical and applied contributions on both microeconomic and macroeconomic labor-related topics.  In particular, the IZA Journal of Labor Economics encourages submissions in subject areas that are closely linked to the various IZA Program Areas, ranging from education, family and environment to mobility, behavioral and personnel economics, and labor market institutions, among others.  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