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This paper investigates the effects of the workforce age structure on the productivity of large Belgian firms. More precisely, it examines different scenarios of changes in the proportion of young (16-29 years), middle-aged (30-49 years) and old (more than 49 years) workers and their expected effects on firm productivity. Using detailed matched employer-employee data, we find that a higher share of young (old) workers within firms is favourable (harmful) for firm value added per capita. Results also show that age structure effects on productivity are stronger in ICT than in non-ICT firms.

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One problem with the theory of firm-specific human capital is that it is difficult to generate convincing examples of investment that could generate the sometimes observed large and continuing effects on earnings. Another approach, called the ‘skill-weights’ view, allows all skills to be general in that there are other firms that use each of the skills. But firms use them in different combinations and with different weights attached to them. The skill-weights view not only has aesthetic appeal, but is consistent with the frequently observed large tenure effects. All of the implications of the traditional view are produced by this approach, and there are a number of other implications that distinguish the new view from the traditional one. The empirical evidence already contains some support for the skill-weights view.

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This paper uses two large multi-country datasets on educational scores - [Programme for International Student Assessment] PISA and [Trends in International Mathematics and Science Study] TIMSS - to examine the performance of Russia in comparative light as well as the factors associated with differences in educational outcomes in Russia. Despite the perception of a positive educational legacy, Russian scores are not stellar and have mostly deteriorated. Using an education production function, we distinguish between individual and family background factors and those relating to the school and institutional environment. We use pooled data, as well as cross sectional evidence, to look at the variation across countries before looking at within-country variation in Russia. We find - both in the cross-country estimates as also those using just Russia data - that a number of individual and family variables in particular, such as parental educational levels, are robustly associated with better educational outcomes. Institutional variables also matter - notably student-teacher ratios and indicators of school autonomy - but there are also some clear particularities in the Russian case.

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This report presents the findings from an evaluation of the first phase of the London European Social Fund (ESF) Youth Programme 2014-2020 (the Programme), with delivery occurring between April 2016 and March 2019. This report was written in late 2018, while some projects were still underway. It presents a snapshot of the results achieved and lessons learnt to that point. The Programme was designed to support young Londoners, aged 15-24 who were either not in education, employment or training (NEET), or at risk of becoming NEET, into sustainable employment, education or training (EET). The Programme involves seven strands of activity, aimed at different cohorts of young people and working with employers and schools. Five of the programme strands are intended to work together, with providers referring young people between strands in order to access targeted support. Key findings include: (1) the programme has been successful so far in supporting most participants (53 per cent) into EET; (2) despite the collaborative design of the programme, providers made fewer referrals than anticipated; (3) despite some reservations, the payment by results approach was generally viewed as the best payment model for this type of programme, incentivising the intended outcomes for providers; (4) providers had different ways of working but in terms of good delivery practice, the most effective approach they have found is to use skilled advisors, have strong local partnerships and to work flexibly with the young person; and (5) participants typically enjoyed the programme and found it helpful in improving their confidence, skills, prospects of getting a job, knowledge of options available to them, and motivation to take next steps.

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Over the last several decades, two of the most significant developments in the US labor market have been: (1) rising inequality; and (2) growth in both the size and the diversity of immigration flows. Because a large share of new immigrants arrive with very low levels of schooling, English proficiency, and other skills that have become increasingly important determinants of success in the US labor market, an obvious concern is that such immigrants are a poor fit for the restructured American economy. In this chapter, we evaluate this concern by discussing evidence for the United States on three relevant topics: the labor market integration of immigrants, the socioeconomic attainment of the US-born descendants of immigrants, and the impact of immigration on the wages and employment opportunities of native workers. We show that low-skilled immigrants have little trouble finding paid employment and that the wages they earn are commensurate with their skills. Overall, the US-born second generation has achieved economic parity with mainstream society; for some Hispanic groups, however, this is not the case. Finally, we survey the pertinent academic literature and conclude that, on the whole, immigration to the United States has not had large adverse consequences for the labor market opportunities of native workers.

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We develop a simple search equilibrium model of workplace training and education based on two features. First, investment in education improves job-related learning skills and reduces training costs burdened by firms. Second, firms with vacant skilled job slots can choose between recruitment from the market and training. Compared to Germany and Japan, the US [United States] has both a higher inflow rate into unemployment and a higher efficiency of the matching process. While the combined effort of these differences on the share of educated labour is ambiguous, the effect on the percentage of firms undertaking workplace training is to unambiguously reduce it.

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Thurow’s job-competition model implies that overeducation is contingent upon the differing skill endowments of employees. As yet, only rudimentary evidence has been furnished to confirm this relationship. In the present paper, we test the theory in a more sophisticated manner, by means of a more differentiated survey of the skill endowments of workers. Our analyses are based on the German Life History Study (GLHS), in which longitudinal biographical data was gathered for the West German cohorts born in 1964 and 1971 up until the year of the survey (1998). These data are analysed using a trivariate probit model which takes into account the selective acquisition of school qualifications, and the selective choice of vocational training with varying levels of quality.

Our findings confirm that type and grade of school leaving certificate both have a strong effect on the later risk of overeducation. The quality of vocational training chosen only impacts on the overeducation risk when the strong selectivity effects in certain types of schools and types of vocational training are not taken into account. In line with existing literature, we find that the risk of overeducation decreases with increasing traditional skill measures such as experience, tenure, on-the-job-training, and further education. In sum, our results clearly confirm the capacity of the job-competition model to explain the persistence of overeducation in the labour market.

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This paper analyses the effects of work-related training on worker productivity. To identify the causal effects from training, we combine a field experiment that randomly assigns workers to treatment and control groups with panel data on individual worker performance before and after training. We find that participation in the training programme leads to a 10 per cent increase in performance. Moreover, we provide experimental evidence for externalities from treated workers on their untreated teammates: An increase of 10 percentage points in the share of treated peers leads to a performance increase of 0.51 per cent. We provide evidence that the estimated effects are causal and not the result of employee selection into and out of training. Furthermore, we find that the performance increase is not due to lower quality provided by the worker.

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The tertiary-secondary (college-high school) wage premium has been increasing in India over the past decade, but the increase differs across age groups. The increase in wage premium has been driven mostly by younger age groups, while older age groups have not experienced any significant increase. This paper uses the demand and supply model with imperfect substitution across age groups developed in Card and Lemieux (2001) to explain the uneven increase in the wage premium across age groups in India. The findings of this paper are that the increase in the wage premium has come mostly from demand shifts in favor of workers with a tertiary education. More importantly, the demand shifts occurred in both the 1980s and 1990s. Relative supply has played an important role not only determining the extent of increase in wage premium, but also its timing. The increase in relative supply of tertiary workers during 1983-1993 offset the demand shift, limiting the wage premium increase. But during 1993-1999, the growth rate of the relative supply of tertiary workers decelerated, while relative supply was virtually stagnant during 1999-2004. Both of these periods saw an increase in the wage premium as the countervailing supply shift was weak.

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The paper studies the dynamic change of the migrant labor market in China from 2002 to 2007 using two comparable data sets. Our focus is on the rural-urban migration decision, the wage structure of migrants, the urban labor market segmentation between migrants and urban natives, and the changes of these aspects from 2002 to 2007. We find that prior migration experience is a key factor for the migration decision of rural household members, and its importance keeps increasing from 2002 to 2007. Our results show that there is a significant increase in wages among both migrants and urban natives over this five-year period, but migrants have enjoyed faster wage growth, and most of the increase of wages among migrants can be attributed to the increase of returns to their characteristics. We also find evidence suggesting convergence of urban labor markets for migrants and for urban natives during this five-year period.

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