Market Orientation and Gender Wage Gaps: An International Study (with Doris Weichselbaumer and Rudolf Winter-Ebmer)
Kyklos, Vol.61(4), 615-635 [link, also available as IZA Discussion Paper No. 2918]
Abstract:
More market orientation may reduce gender wage gaps via its effects on competition in product and labor markets and a generally lower level of regulation in the economy. On the other hand, less regulation and state intervention – which goes along with higher market orientation – may diminish the role of legislature and institutions that influence wage setting and may therefore increase gender wage differentials. In this paper, two very different approaches are used to test the relation between market orientation and gender wage differentials in international data. The first approach employs meta-analysis data and takes advantage of the fact that many studies already exist which use national data sources to the best possible extent. The second approach uses comparable micro data from the International Social Survey Programme (ISSP), which allows calculating internationally consistent gender wage residuals in the first place. By comparing these two very different methods of data collection we get the robust result that higher levels of market orientation as proxied by the Economic Freedom Index lead to lower gender wage gaps across countries and time periods.
Early tracking and the misfortune of being young (with Nicole Schneeweis) [link], submitted
Abstract:
In the Austrian (as well as the German) education system students have to choose between different school tracks at the age of 10. We argue that early tracking creates inefficiencies because the earlier the track choice has to be made, the more it is influenced by factors other than innate ability. Recent evidence suggests that the relative age of a student within a grade is related to his or her achievement, and that this effect is decreasing over grades. Thus, age-related achievement differences probably translate into age-related differences in track choice if track choice has to be made early. In this paper we estimate the effect of observed age on the track choice after grade 4 using register data for a major Austrian city for the period 1984-2006. Since observed age at track choice is endogenous, we exploit the exogenous variation in birth month to identify the causal effect of age. We find a strong and significant positive effect of age on track choice in grades 5--8. Since after grade 8, students again have to make a track choice, we use additional data from PISA 2003 and 2006 to show that the effect is long-lasting in urban areas. Therefore, the education system fails to provide a mechanism that leads to an efficient allocation of students to tracks.
Girls, girls, girls: gender-composition and female school choice (with Nicole Schneeweis) [link], submitted
Abstract:
Gender segregation in the labor market may be explained by women's reluctance to choose technical occupations, although the foundations for career choices are certainly laid earlier, during education. Educational experts claim that female students are doing better in math and science and are more likely to choose those subjects if they are in single-sex classes. Possible explanations are the lack of self-confidence of girls in male-dominated subjects, the dominating behavior of boys in the classroom and unequal treatment by teachers. In this paper, we identify the causal impact of gender composition in coeducational classes on the choice of school type for female students. We propose that girls are less likely to choose a female-dominated school type at the age of 14 after spending the previous years in classes with a higher share of female students. We address the problem of endogenous school choice by using natural variation in gender composition of adjacent cohorts within schools. The results are clear-cut and survive powerful falsification and sensitivity checks: Females are less likely to choose a female-dominated school type and more likely to choose the technical school type if they were exposed to a higher share of girls in previous grades. Our paper contributes to the recent debate about coeducation either in certain subjects or at the school level.
The employment of temporary agency workers in the UK - with or against the trade unions? (with René Böheim) [IZA Discussion Paper No. 4492], submitted
Abstract:
A firm's decision to employ agency workers may be perceived as a replacement of directly employed workers or as way to curb union power, which trade unions would oppose. Alternatively, trade unions may encourage the (temporary) employment of agency workers in a firm, if they manage to bargain higher wages for their members. We estimate the relationship between hiring agency workers and trade union activity at the workplace, in particular, the type of collective bargaining agreements. We use British data from the Workplace Employment Relations Surveys (WERS) of 1998 and 2004. The empirical association between the employment of agency workers and union strength is weak, but positive. Furthermore, workplaces with collective bargaining have lower wages in the presence of agency workers, suggesting that agency workers are hired against the unions.
Job quality and retirement decisions (joint with Nicole Schneeweis, Mario Schnalzenberger and Rudolf Winter-Ebmer)
The Causal Effect of Health on Income: Quasi-Experimental Evidence (joint with Martin Halla)
Occupational accidents, sorting and wages. Evidence from Austrian Register Data (joint with Martin Halla)
Sick leave payments, absenteeism and moral hazard (joint with Martin Halla)