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Papers by Josef Zweimueller

Research paper thumbnail of Unequal assignment and unequal promotion in job ladders

Research paper thumbnail of Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations

SSRN Electronic Journal, 2018

Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research pu... more Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

Research paper thumbnail of Wages and the Value of Nonemployment

Nonemployment is often posited as a worker's outside option in wage setting models such as bargai... more Nonemployment is often posited as a worker's outside option in wage setting models such as bargaining and wage posting. The value of this state is therefore a fundamental determinant of wages and, in turn, labor supply and job creation. We measure the effect of changes in the value of nonemployment on wages in existing jobs and among job switchers. Our quasi-experimental variation in nonemployment values arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit levels: point estimates imply a wage response of less than 0.01per0.01 per 0.01per1.00 UI benefit increase, and we can reject sensitivities larger than 0.03. In contrast, a calibrated Nash bargaining model predicts a sensitivity of 0.39-more than ten times larger. The empirical insensitivity holds even among workers with a priori low bargaining power, with low labor force attachment, with high predicted unemployment duration, among job switchers and recently unemployed workers, in areas of high unemployment, in firms with flexible pay policies, and when considering firm-level bargaining. The insensitivity of wages to the nonemployment value we document presents a puzzle to widely used wage setting protocols, and implies that nonemployment may not constitute workers' relevant threat point. Our evidence supports wage-setting mechanisms that insulate wages from the value of nonemployment.

Research paper thumbnail of Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data

SSRN Electronic Journal

This paper explores the relationship between the duration of a vacancy and the starting wage of a... more This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies, and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions.

Research paper thumbnail of Learning for Employment, Innovating for Growth

We present a model in which workers must be educated to get a good job and firms must innovate in... more We present a model in which workers must be educated to get a good job and firms must innovate in order to increase productivity. Education as well as innovation and production require skilled labor as inputs. This, together with the fact that learning opportunities differ across workers, determine simultaneously the long-run level of skilled employment and the long-run rate of growth. We study the impact of changes in the factors which affect the education of workers and the incentives to innovate, and discuss the growth and employment effects of labor market policy measures.

Research paper thumbnail of The Impact of Active Labor Market Programs on the Duration of Unemployment

... A formal proof of this is given in Abbring and Van den Berg (2000).2 We discuss identificatio... more ... A formal proof of this is given in Abbring and Van den Berg (2000).2 We discuss identification issues of the timing-of-events method in more detail below. The ... (1997) and Van den Berg et al. (1998) who study the effect of benefit sanctions on the transition rate ...

Research paper thumbnail of Heterogeneous Consumers, Vertical Product Differentiation and the Rate of Innovation

The Institute for Advanced Studies in Vienna is an independent center of postgraduate training an... more The Institute for Advanced Studies in Vienna is an independent center of postgraduate training and research in the social sciences. The Economics Series presents research done at the Economics Department of the Institute for Advanced Studies. Department members, guests, visitors, and other researchers are invited to contribute and to submit manuscripts to the editors. All papers are subjected to an internal refereeing process.

Research paper thumbnail of Learning for Employment, Innovating for Growth

We present a model in which workers must be educated to get a good job and firms must innovate in... more We present a model in which workers must be educated to get a good job and firms must innovate in order to increase productivity. Education as well as innovation and production require skilled labor as inputs. This, together with the fact that learning opportunities differ across workers, determine simultaneously the long-run level of skilled employment and the long-run rate of growth. We study the impact of changes in the factors which affect the education of workers and the incentives to innovate, and discuss the growth and employment effects of labor market policy measures.

Research paper thumbnail of Inequality, market power, and product diversity

Research paper thumbnail of Inequality, Redistribution, and Economic Growth

SSRN Electronic Journal, 2000

This paper provides a critical review of the recent literature on inequality and growth. After di... more This paper provides a critical review of the recent literature on inequality and growth. After discussing historical and more recent distributional trends as well as empirical evidence on the relationship between inequality and growth, I focus on recent explanations of the inequality-growth puzzle. I consider both the impact of the functional and the personal distribution on long-run growth rates. A final section discusses a rather neglected issue in the recent literature: the impact of expected demand for innovation decisions.

Research paper thumbnail of Unequal assignment and unequal promotion in job ladders

Research paper thumbnail of Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations

SSRN Electronic Journal, 2018

Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research pu... more Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

Research paper thumbnail of Wages and the Value of Nonemployment

Nonemployment is often posited as a worker's outside option in wage setting models such as bargai... more Nonemployment is often posited as a worker's outside option in wage setting models such as bargaining and wage posting. The value of this state is therefore a fundamental determinant of wages and, in turn, labor supply and job creation. We measure the effect of changes in the value of nonemployment on wages in existing jobs and among job switchers. Our quasi-experimental variation in nonemployment values arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit levels: point estimates imply a wage response of less than 0.01per0.01 per 0.01per1.00 UI benefit increase, and we can reject sensitivities larger than 0.03. In contrast, a calibrated Nash bargaining model predicts a sensitivity of 0.39-more than ten times larger. The empirical insensitivity holds even among workers with a priori low bargaining power, with low labor force attachment, with high predicted unemployment duration, among job switchers and recently unemployed workers, in areas of high unemployment, in firms with flexible pay policies, and when considering firm-level bargaining. The insensitivity of wages to the nonemployment value we document presents a puzzle to widely used wage setting protocols, and implies that nonemployment may not constitute workers' relevant threat point. Our evidence supports wage-setting mechanisms that insulate wages from the value of nonemployment.

Research paper thumbnail of Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data

SSRN Electronic Journal

This paper explores the relationship between the duration of a vacancy and the starting wage of a... more This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies, and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions.

Research paper thumbnail of Learning for Employment, Innovating for Growth

We present a model in which workers must be educated to get a good job and firms must innovate in... more We present a model in which workers must be educated to get a good job and firms must innovate in order to increase productivity. Education as well as innovation and production require skilled labor as inputs. This, together with the fact that learning opportunities differ across workers, determine simultaneously the long-run level of skilled employment and the long-run rate of growth. We study the impact of changes in the factors which affect the education of workers and the incentives to innovate, and discuss the growth and employment effects of labor market policy measures.

Research paper thumbnail of The Impact of Active Labor Market Programs on the Duration of Unemployment

... A formal proof of this is given in Abbring and Van den Berg (2000).2 We discuss identificatio... more ... A formal proof of this is given in Abbring and Van den Berg (2000).2 We discuss identification issues of the timing-of-events method in more detail below. The ... (1997) and Van den Berg et al. (1998) who study the effect of benefit sanctions on the transition rate ...

Research paper thumbnail of Heterogeneous Consumers, Vertical Product Differentiation and the Rate of Innovation

The Institute for Advanced Studies in Vienna is an independent center of postgraduate training an... more The Institute for Advanced Studies in Vienna is an independent center of postgraduate training and research in the social sciences. The Economics Series presents research done at the Economics Department of the Institute for Advanced Studies. Department members, guests, visitors, and other researchers are invited to contribute and to submit manuscripts to the editors. All papers are subjected to an internal refereeing process.

Research paper thumbnail of Learning for Employment, Innovating for Growth

We present a model in which workers must be educated to get a good job and firms must innovate in... more We present a model in which workers must be educated to get a good job and firms must innovate in order to increase productivity. Education as well as innovation and production require skilled labor as inputs. This, together with the fact that learning opportunities differ across workers, determine simultaneously the long-run level of skilled employment and the long-run rate of growth. We study the impact of changes in the factors which affect the education of workers and the incentives to innovate, and discuss the growth and employment effects of labor market policy measures.

Research paper thumbnail of Inequality, market power, and product diversity

Research paper thumbnail of Inequality, Redistribution, and Economic Growth

SSRN Electronic Journal, 2000

This paper provides a critical review of the recent literature on inequality and growth. After di... more This paper provides a critical review of the recent literature on inequality and growth. After discussing historical and more recent distributional trends as well as empirical evidence on the relationship between inequality and growth, I focus on recent explanations of the inequality-growth puzzle. I consider both the impact of the functional and the personal distribution on long-run growth rates. A final section discusses a rather neglected issue in the recent literature: the impact of expected demand for innovation decisions.