Sholeh A. Maani

WHAT IS THE EFFECT OF HOUSEWORK ON THE MARKET WAGE, AND CAN IT EXPLAIN THE GENDER WAGE GAP?

Does housework reduce the market wage, and if so, does it have a similar impact for males and females? In this paper, we survey and evaluate the recent and growing empirical literature on the linkages between housework and the wage rate. The review is motivated by unexplained gender wage gaps across studies, which consider personal and market-related factors. We focus on this less-studied aspect of wage determination. We consider the required modelling framework, and provide standardized estimated effects of housework on the hourly wage across studies. We evaluate how this literature has addressed potential estimation problems, in particular, the endogeneity of housework, concavity of the housework-wage function, threshold effects and work effort effects. We conclude that the evidence across ordinary least squares, instrumental variable, fixed effects and two-stage least squares results casts serious doubt on the idea that the negative female housework-wage relationship is only driven by endogeneity bias or individual-specific characteristics. Yet, much more needs to be done to address modelling and data requirements, and we point out likely and promising future research directions. Copyright

Parental Income and the Choice of Participation in University, Polytechnic or Employment at Age 18: A Longitudinal Study

This paper examines the link between parental income during adolescent years and higher education choices of the offspring at age 18. This study is the first to use a recent longitudinal data set from New Zealand (Christchurch health and development Surveys, CHDS), in the higher education context. The paper examines the impact of family income and other resources throughout adolescent years on later decisions to participate in higher education and the choice of type of tertiary education at age 18. A binary choice model of participation in education, and a multinomial choice model of the broader set of choices faced at age 18, of employment, university, or polytechnic participation are estimated. Among the features of the study are that it incorporates a number of variables, from birth to age 18, which allow us to control further than most earlier studies for ability heterogeneity, academic performance in secondary school, in addition to parental resources (e.g., childhood IQ, nationally comparable high school academic performance, peer effects, family size and family financial information over time). The results highlight useful features of intergenerational participation in higher education, and the effect of parental income on university education, in particular.

Post‐unemployment wages, the probability of re‐employment, and the unemployment benefit

This paper presents empirical evidence on the effect of the unemployment benefit on post‐unemployment wages, the likelihood of re‐employment and reservation wages of unemployed job seekers in New Zealand. A specially designed survey and the resulting panel data utilised in the study, allow the first test of unemployment job matching hypotheses with New Zealand data. The question of the effect of the unemployment benefit on job search outcome remains generally unresolved in the empirical job search literature. The New Zealand case studied alleviates some measurement problems in earlier studies, especially those employing U.S. data (as noted in Welch, 1977; and Feldstein, 1978) in that the benefit level is not tied to a job seekers previous wage, and that it is not experience rated, presenting favourable measurement conditions. The results indicate that a higher unemployment benefit replacement ratio was associated with a lower probability of re‐employment, but a higher post‐unemployment wage, mainly throu...

The unemployment benefit, unemployment duration and wage requirements of job seekers in New Zealand∗

Abstract This study provides the first empirical estimation of reservation wages in New Zealand, employing a specially designed survey of unemployed job seekers conducted in 1986. The study examines the responsiveness of reservation wages to unemployment duration by estimating a model of the reservation wage and unemployment duration. The N.Z case studied presents a test of reservation wage determination where there is the potential for the unemployment benefit to be collected indefinitely. In addition, since the benefit level in N.Z. is not tied to the job seekers previous wage, it alleviates some measurement problems in earlier studies (especially those employing U.S. data). The results indicate that reservation wages were not responsive to unemployment duration, a result different from most studies with exhaustible unemployment benefits. The results further indicate that reservation wages were positively influenced by the benefit, and they in turn had a modest effect on duration.

The effect of fees on participation in higher education: A survey of OECD countries

Prior to 1990, students paid nominal flat fees for tertiary education in New Zealand which was practically fully financed by public funds. Following a review of funding tertiary education, universities receive a subsidy per full‐time student and are free to determine their own fees. A range of fees, and the prospects of decreased government subsidies and rising fees, have prompted interest in the empirical evidence on the effect of fees and corresponding student support systems on the demand for higher education by different income groups. This paper provides a survey of the relevant issues and it examines evidence from the OECD countries, in particular from the US, Australia and the UK, on the effect of fees, income and socio‐economic background on participation in higher education. Cross section, time series and rate of return studies are examined. The survey further examines the extent to which participation in higher education is influenced by policies on access to education: grants, loans and quotas....

Educational Mismatches and Earnings in the New Zealand Labor Market

ABSTRACT Mismatch of educational skills in the labour market is an emerging topic in the field of labour economics, partly due to its link to labour productivity. In this paper, we examine the incidence of educational mismatch and its earnings effects in the New Zealand labour market. Using micro-data drawn from the Household Labour Force Survey and the New Zealand Income Supplement (HLFS/NZIS) for the years 2004–2007, we find a noteworthy incidence of both over- and under-education in New Zealand – approximately half of workers in some occupations were well matched to their jobs. We also find that earnings returns to required years of education exceeded the returns with over- and under-education, with a greater earnings penalty associated with under-education. We test hypotheses on three alternative models of educational mismatch. Our results imply that public spending on education is not wasteful. However, better allocation of workers to jobs may be needed to increase overall labour productivity.

Job Mismatches and Career Mobility

ABSTRACT Does over-education assist or hinder occupational advancement? Career mobility theory hypothesizes that over-education leads to a higher level of occupational advancement and wage growth over time, with mixed international empirical evidence. This paper re-tests career mobility theory directly using a rich Australian longitudinal data set. A dynamic random effects probit model is employed to examine upward occupational mobility, considering two-digit occupational rank advancement and wage growth over three-year intervals. The ‘Household, Income and Labour Dynamics in Australia’ data across nine years are employed, and a Mundlak correction model is adopted to adjust for unobserved heterogeneity effects and potential endogeneity, both of which are important to over-education analysis. Contrary to career theory, the results point to job mismatch as an economic concern rather than a passing phase, regardless of whether or not workers are skill-matched. Results further show the importance of adjusting for endogeneity.