WORKING PAPERS

 

1.      LONGER-TERM IMPACTS OF MENTORING, EDUCATIONAL SERVICES, AND INCENTIVES TO LEARN: EVIDENCE FROM A RANDOMIZED TRIAL IN THE US.  January 2010.  

           Currently submitted and waiting for editor’s decision.

            Working paper

 

Abstract

This paper is the first to use a randomized trial in the US to analyze the short- and long-term educational and employment impacts of an after-school program that offered disadvantaged high-school youth: mentoring, educational services, and financial rewards with the objective to improve high-school graduation and post-secondary schooling enrollment.  Average impacts reveal that the hefty beneficial educational outcomes quickly faded away.  Heterogeneity matters.  While encouraging results are found for the younger youth; detrimental long-lived outcomes for males suggest that extrinsic rewards may be crowding out intrinsic motivation.  Evidence by sites’ funding source, which led to implementation differences, supports this hypothesis.

 

 

2.      THE PART-TIME PAY PENALTY IN A SEGMENTED LABOR MARKET

(joint work with Daniel Fernández Kranz).  August, 2009. 

          Revise and Resubmit.

          IZA discussion paper No. 4342, August 2009. (updated version of the paper)

  Press coverage: El Economista, November 7th, 2009; El País, December 5th, 2010  

 

Abstract

While much of the literature that investigates the part-time (PT) / full-time (FT) hourly wage differential and its causes focuses on average effects, very few studies analyze the heterogeneous effects of PT work across different subgroups, despite the policy relevance of understanding channels behind the (raw) PT penalty in different labor markets.  This paper is the first to examine the implications of switching to PT work for women’s subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixed-term.  Using a 21-year unbalanced Social Security records panel of over 76,000 prime-aged women strongly attached to the Spanish labor market, we find that PT work aggravates the segmentation of the labor market insofar there is a PT pay penalty and this penalty is larger and more persistent in the case of women with fixed-term contracts.  The paper discusses problems arising in empirical estimation, and how to address them.  It concludes with policy implications relevant for Continental Europe and its dual structure of employment protection. 

 

 

3.      IMMIGRANTS’ ASSIMILATION PROCESS IN A SEGMENTED LABOR MARKET

(joint with Miguel Angel Alcobendas).  September 2009.

            Currently submitted and waiting for editor’s decision. (updated version of the paper)

 

Abstract

While much of the literature on immigrants’ assimilation has focused on countries with a large tradition of receiving immigrants and with flexible labor markets, very little is known on how immigrants adjust to other types of host economies.  With its severe dual labor market, and an unprecedented immigration boom, Spain presents a perfect natural experiment to analyze immigrations’ assimilation process.  Using data from the 2000 to 2008 Spanish Labor Force Survey, we find that immigrants are more occupationally mobile than natives, and that much of this greater flexibility is explained by immigrants’ assimilation process soon after arrival.  However, we find little evidence of convergence, especially among women and high skilled immigrants.  This suggests that instead of integrating, immigrants are occupationally segregating, implying that there is both imperfect substitutability and underutilization of immigrants’ human capital.

 

 

8.  DISPLACEMENT, SIGNALING, AND RECALL EXPECTATIONS: THEORY AND EVIDENCE

       January 2010.

       Currently submitted and waiting for editor’s decision. (updated version of the paper)

 

Abstract

This paper is the first to present empirical evidence consistent with models of signaling through unemployment and to uncover a new stylized fact using the 1988-2006 DWS, namely that, among white-collar workers, post-displacement earnings fall less rapidly with unemployment spells for layoffs than for plant closings.  Because high-productivity workers are more likely to be recalled than low-productivity ones, they may choose to signal their productivity though unemployment, in which case the duration of unemployment may be positively related to post-displacement wages.  Identification is done using workers whose plant closed as they cannot be recalled, and no incentives to signal arise.

 

 

   9.  DISTRIBUTIONAL EFFECTS OF THE MINIMUM WAGE INCREASE: EVIDENCE FROM CALIFORNIA. July 1998.  http://pareto.uab.es/nrodriguez/minwg.rtf

 

 

WORK IN PROGRESS

 

10.  IMMIGRANTS’ ASSIMILATION AND WELFARE PARTICIPATION IN A MEDITERRANEAN WELFARE STATE:  THE CASE OF SPAIN

While much of the literature on immigrants’ cash-welfare benefits use has focused on countries with a large tradition of receiving immigrants and with well established Welfare states, very little is known on how immigrants adjust to other types of host economies.  With a Welfare state heavily reliable on conditioned access to pensions and with a small level of social assistance, and an unprecedented immigration boom, Spain presents a quite unique experience to analyze differences in welfare utilization between immigrants and natives.  Using data from the 1999 to 2009 Labor Force Survey, we find that immigrants are less likely to use welfare than natives, and that this residual welfare gap remains, even after accounting for socio-demographic characteristics.  In terms of assimilation into welfare, we find that immigrants assimilate in terms of unemployment benefits receipt, but no assimilation is observed among all other social programs.  These results suggest that most immigrants have come to Spain to work, but that they are also the ones in the most vulnerable positions and thus the ones more likely to be hit by the recent recession and to use unemployment benefits once they have accumulated the right to do so.  Their precarious situation and reduced access to the scarce social assistance offered in Spain raises policy concerns on their risk of social exclusion.

 

11.  CAN AN INTENSIVE HELP PROGRAM FOR AT-RISK YOUGH HELP PREVENT RISKY BEHAVIOURS? EVIDENCE FROM A RANDOMIZED TRIAL

Using evidence from a randomized trial, this paper estimates the impact on risky behaviors from a five-year after-school program, the Quantum Opportunity Program (QOP hereafter) that offered disadvantaged high-school youth intense case-management and mentoring, educational services, and financial incentives to attend program activities and complete major program activities.  Risky behaviors include substance abuse, crime, and teenage childbearing.  Impacts were estimated by comparing outcomes for two statistically equivalent groups created by random assignment—a QOP group and a control group.  Outcomes were measured at three different points in time, 1 year, 4 years and 6 years after the end of the program.  Overall the program was unsuccessful at reducing risky behaviors.  Thorough analysis on how the program was implemented and of the program’s differential effects across different subgroups will provide information on why such and intensive after-school program had such little success at reducing risky behaviors and what are the lessons learned.

 

12.  MOTHERS’ QUEST FOR JOB PROTECTION: BUILDING THE NEST OR BREAKING THE GLASS CEILING? EVIDENCE USING SPANISH LONGITUDINAL DATA. Joint with Daniel Fernández Kranz and Aitor Lacuesta.  Previous research has found that temporary contracts delay marriage and fertility in Spain. Using newly released administrative data we study the motivations behind the fertility delay that is associated with job protection. We find that during the five years after the birth of the first child mothers in protected jobs promote less and their wages grow less (16 per cent) compared to mothers that had a fixed-term contract at the time of childbirth. The poor after-birth outcomes of mothers in protected jobs contrasts with their better performance before birth, with wages growing more rapidly than those of other women and other mothers. We provide evidence that a permanent contract acts as insurance against the negative wage effects of motherhood, but at the price of less wage growth. We also find that mothers that had a permanent contract at childbirth reduce their working time more, forgo opportunities of promotion outside the firm and have a lower return to each additional year of experience compared to mothers with a temporary contract. Our interpretation of these results is that job protection helps mothers conciliate work and family responsibilities rather than to achieve professional success.      

 

      13.  CHILDCARE POLICY, FERTILITY AND LABOR SUPPLY OF MOTHERS WITH SMALL YOUNG CHILDREN: A NATURAL EXPERIMENT FROM SPAIN.  Spain has record-low fertility and female labor force participation rates. These population trends may jeopardize economic growth in the absence of offsetting changes in employment rates and productivity, and may require structural adaptations with important implications for public pensions, health expenditures, and welfare. This paper uses the variation over time and across regions in an education policy change in Spain to assess the effect of a reduction in childcare costs in fertility and female labor force participation. Implications of the policy are evaluated using data from the Encuesta de Poblacion Activa (EPA) and differences-in-differences quasi-experimental methodology.

 

      14.  UNIVERSAL CHILDCARE AND CHILDREN’S COGNITIVE DEVELOPMENT: A NATURAL EXPERIMENT FROM SPAIN. Joint with Christine Felfe.   This paper uses the variation over time and across regions in an education policy change in Spain to assess the effect of a reduction in childcare costs in children’s cognitive development. Implications of the policy are evaluated using data from PISA and differences-in-differences quasi-experimental methodology.

 

15.  NEW TECHNOLOGIES AND SKILL MIX IN SPAIN (joint work with Isabel Busom Piquer).  Since the transition to democracy, Spain has experienced the following two processes.  On the one hand, industries have invested greatly in the use of  automation.  On the other, there has been a notorious improvement of human capital, with its implications on the mix of skilled versus unskilled labor available to entrepreneurs.  This project uses plant-level data to analyze the link between automation and skill mix in the last two decades in Spain.  More specifically, the project will use panel data from “la Encuesta Tecnológica en las Empresas” to identify the direction of the causality between the use of new technologies in the production and the human capital improvements.