Summary Papers - Seminar Labor Economics

INHOUDSOPGAVE

Paper 1: Krueger, Cramer and Cho (2014) .............................................................................................................. 2
Paper 2: Acemouglu and Autor (2011) .................................................................................................................... 5
Paper 3: Autor (2013) .............................................................................................................................................. 9
Paper 4: Card (2017) ............................................................................................................................................. 12
Paper 5: Bolhaar (2019) ....................................................................................................................................... 13
Paper 6: Koning and Lindeboom (2015) ................................................................................................................ 14
Paper 7: Van Sonsbeek and Gradus (2013) ........................................................................................................... 17
Paper 8: de Boer and Jongen (2017) ..................................................................................................................... 19
Paper 9: Clemens and Wither (2019) .................................................................................................................... 21

, PAPER 1: KRUEGER, CRAMER AND CHO (2014)


RQ
Explores the extent to which the long-term unemployed are on the margins of the labor force, and are
therefore possibly exerting little pressure on wage growth or inflation and slowing the process of
matching unemployed workers to the job vacancies.




Hypothesis
The longer workers are unemployed the less they become tied to the job market either because:
1. On the supply side: they grow discouraged and search less intensively
2. On the demand sie. Employers discriminate against them, based on the expectation
that there is a productivity-related reason for that accounts for their long
unemployment period


>> View these two as complementary(rather then competing) explanations which
reinforce each other: E.g. discrimination could lead to discouragement and skill
erosion that accompanies long-term unemployment could induce employers to
discriminate against the long-term unemployed.


Main findings
1. conclude that the long-term unemployed are less connected to the economy than the short-
term unemployed, and that many eventually withdraw from the labor force
2. find that the long-term unemployed are about 60 percent as effective at matching to job
openings as are the short-term unemployed
3. job finding rates are more sensitive to the state of the business cycle for the short-term
unemployed than the long-term unemployed, suggesting that the long-term unemployed are
more insulated from macroeconomic developments.
4. long-term unemployed normally have a higher rate of labor force withdrawal than the short-
term unemployed, although we document that following a recession the labor force withdrawal
rates for all duration groups tend to collapse to a common, lower level




Profile of the Long-term and Short-term unemployed in the US
General unemployed:
• larger shares of the unemployed are younger, unmarried, and less well educated.
Short-term:
• More young and older, less middle-aged
Long-term:
• Compared the ST unemployed: +50 of age, African-American
• Have higher earnings than the STU since they are older and have more work experience
Long-term and short-term unemployed are broadly similar. LT and ST unemployed are qualified for
similar jobs.