Labour markets

Davide Consoli, Giovanni Marin, David Popp, Francesco Vona, 22 May 2015

The greening of the economy brings with it changes in the demand for certain skills in the labour market. Understanding these changes has important implications for policy aiming to support sustainable industry. This column uses US data to identify key green jobs and the skills of import for them. Environmental sustainability regulations are shown to affect the demand for green skills in the labour market. Labour market policies should target labour supply, for instance through education, to avoid potential skill gaps down the line.

Esther Ann Bøler, Beata Javorcik, Karen-Helene Ulltveit-Moe, 18 May 2015

The gender wage gap persists even in gender equal societies such as the Nordic countries. This column suggests that globalisation may play a role in that. The authors show that exporting firms have higher gender wage gaps although the effect is only present among college graduates. The heightened competition faced by exporters requires greater commitment and flexibility on the part of the workers, which leads to statistical gender discrimination.

Toby Nangle, 09 May 2015

The recent remarkably low interest rates have puzzled economists. The standard explanation rests on the extraordinary manoeuvres of the world’s largest central banks. This column argues, however, that it is due to economic developments, specifically globalisation and the collapse in labour power in the west.

Tomohiko Inui, Makiko Nakamuro, Kazuma Edamura, Junko Ozawa, 02 May 2015

In order to achieve sustainable growth, Japan should make an efficient use of its labour force. However, female labour force participation and the share of women in leading positions in Japan remain low. This column investigates the impact of board diversity on firms’ innovative activity using Japanese firm-level data. The findings suggest that board diversity is associated with innovation only for firms that have already acquired diverse management skills.

Fatih Guvenen, Fatih Karahan, Serdar Ozkan, Jae Song, 29 April 2015

Many policy design issues depend crucially on the nature of the idiosyncratic risks to labour income. The earning dynamics literature has typically relied on an implicit or explicit assumption that earnings shocks are log-normally distributed. This column challenges conventional knowledge by bringing in new evidence from a very large administrative dataset on US workers. It presents evidence suggesting income shocks exhibit substantial deviations from log-normality, and that shock persistence depends on income levels as well as the size and sign of the shock.

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