Labour markets

Shannon Ward, Jenny Williams, Jan van Ours, 30 August 2015

Early school leaving and criminal behaviour are important social problems. This column argues that delinquency and arrests both lead to early school leaving. The findings show that the overall reduction in education due to delinquency is at least as large as the reduction due to arrest. Crime prevention efforts thus need to extend beyond youth who come into contact with the justice system.

Paul Gaggl, Greg C. Wright, 20 August 2015

Investments in ICT could affect different types of workers within the firm in a different way. This column shows that firms that invest in ICT reorganise their production processes in a way to raise the productivity of workers who perform complex, cognitive-intensive works. This ICT investment and firm reorganisation has little effect on other types of workers.

Andreas Beerli, Giovanni Peri, 17 August 2015

The case for immigration restrictions is periodically debated in the political arena. This column shows that fully opening the border to neighbouring countries increased immigrants to Switzerland only by 4% of the labour force over eight years. Such an increased inflow did not have significant aggregate effects. Highly educated workers, however, benefited in terms of higher wages, while middle-educated ones experienced employment losses.

Brian McCaig, Nina Pavcnik, 04 August 2015

Finding employment in the formal sector in developing countries is difficult. Countries with an abundance of informal firms suffer from low aggregate productivity. This column suggests that as countries develop, more workers transition from the informal to the formal sector. A ten-year period of rapid growth in Vietnam displayed a decrease in the employment in the informal sector in favour of the formal one. Most of it was due to changing cohorts in the workforce. In addition, this transition leads to gains in aggregate productivity in the formalised sectors.

Steffen Altmann, Armin Falk , Simon Jäger, Florian Zimmermann, 03 August 2015

A key question for policymakers is how long-term unemployment can be effectively reduced. This column presents new evidence from a large-scale field experiment in which job seekers were provided with information and encouragement. The results indicate that targeted information provision can be an effective policy tool, in particular in the combat against long-term unemployment.

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