Despite the recent increase in educational investment, Spain still ranks towards the bottom of the OECD country list for the level of its human capital stock and the new inflow of high school graduates. We address this issue by investigating the impact of family characteristics and local labor market conditions on the demand for post-compulsory education. We find clear evidence of a positive ef...

Economic Integration and Labor Market Institutions: Worker Mobility, Earnings Risk, and Contract Structure This paper investigates the effects of labor market integration, in the form of worker mobility, in a model with long-term labor contracts that lead to wage rigidities and unemployment. Reflecting the interdependence of regional labor markets, we develop a general-equilibrium framework whe...

Little is known about the magnitude of China’s SOE labor redundancy and the patterns and determinants of job creation. Such knowledge gap makes it difficult for decision-makers to provide prescriptions for China’s labor problems. This paper uses a panel data of Chinese provinces between 1986 to 1996 to estimate China’s SOE labor redundancy, and patterns and determinants of job creation in China...

It is hypothesized that labor availability and related low levels of demand for women in agricultural work explain the high incidence of nuclear family formation in some Caribbean slave societies, as well as occasional high birth rates. Three paired comparisons, reflecting differing levels of labor supply, are examined: The Leewards and the Bahamas; Martinique and Barbados; and Cuba and Jamaica...

This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation (labor supply) respon...

This paper examines the causal impact of labor force participation on informal caregiving. To address the endogeneity of labor force participation, we exploit local business cycles and instrument for individual labor force participation with state unemployment rates. Using data from the Survey of Income and Program Participation (SIPP), we find that labor force participation significantly reduc...