Academic literature on the topic 'Labor economics'

In this dissertation, I present three essays on matching and assignment in labor economics. The first chapter presents an integrated model of occupation choice, spouse choice, family labor supply, and fertility. Two key features of the model are that occupations differ both in wages and in an amenity termed flexibility, and that children require a nontrivial amount of parental time that has no market substitute. I show that occupations with more costly flexibility, modeled as a nonlinearity in wages, have a lower fraction of women, less positive assortative mating on earnings, and lower fertility among dual-career couples. Costly flexibility may induce high-earning couples to share home production, which rewards husbands who are simultaneously high-earning and productive in child care. Empirical evidence broadly supports the main theoretical predictions with respect to the tradeoffs between marriage market and career outcomes. In the second chapter, I use the University of Michigan Law School Alumni Survey to investigate the interaction between assortative mating and the career and family outcomes of high-ability women. Women with higher earnings potential at the time of law school graduation have higher-earning spouses and more children 15 years after graduation. As the earnings penalty from reduced labor supply decreased over the sample, women with higher-earning spouses and more children reported shorter work weeks and were less likely to be in the labor force. Decreasing the career cost of non-work may have the unintended result of reducing the labor supply of the highest-ability women, as their high-earning spouses give them the option to temporarily exit the labor force. The third chapter addresses specification choice in empirical peer effects models. Predicting the impact of altering composition on student outcomes has proven an unexpected challenge in the experimental literature. I use the experimental data of Duflo et al. (2011) to evaluate the out-of-sample predictive accuracy of popular reduced form peer effects specifications. I find that predictions of the impact of ability tracking on outcomes are highly sensitive to the choice of peer group summary statistics and functional form assumptions. Standard model selection criteria provide some guidance in selecting among peer effect specifications.

Aquesta tesi persegueix els objectius següents. En primer lloc, estudia els factors que impulsen el creixement constant tant en la participació de la mà d'obra com en les hores per treballador de persones majors, persones majors de 62 anys, als Estats Units des de mitjan anys vuitanta. Utilitzem dades del Health and Retirement Study (HRS) per estimar un model de cicle de vida de l'oferta laboral, la jubilació i l'acumulació de riqueses per contrastar el comportament de l'oferta laboral de dues cohorts als EUA: persones nascudes després de la Primera Guerra Mundial ("The Great Depression Kids"), i els nascuts després de la Segona Guerra Mundial ("The Baby Boomers"). Ens centrem en les diferències entre aquestes dues cohorts en l'obtenció i la dinàmica de la salut, així com les polítiques a què s'enfronten, un augment gradual de l'Edat de jubilació normal i l'eliminació de la prova de guanys l'any 2000, com a possibles fonts de canvi. Els resultats demostren que els efectes de les polítiques i els factors no relacionats amb la política tenen una magnitud similar. L'eliminació de la prova de guanys va tenir el major impacte de totes les polítiques. De forma conjunta, l'augment de les despeses mèdiques de butxaca i l'augment de l'esperança de vida són els factors dominants entre els no relacionats amb les polítiques. En segon lloc, utilitzem el Panell Socioeconòmic Alemany (SOEP) per estudiar com la introducció d'un salari mínim federal a Alemanya l'1 de gener de 2015 afecta els salaris de les reserves individuals. Trobem que la reforma estava associada amb un augment dels salaris de reserva d'aproximadament el 4 per cent en el final més baix de la distribució. A més, els canvis en els salaris de reserva i els salaris observats a causa de la reforma salarial mínima són comparables en la seva magnitud. També mostrem que els ciutadans alemanys ajusten els seus salaris de reserva més que els immigrants. En tercer lloc, torneu a utilitzar les dades SOEP per estimar l'efecte de la reforma salarial mínima alemanya sobre la durada de l'atur. Trobem una associació molt forta de la reforma amb un augment de la durada de l'atur entre homes joves. Aquest efecte és especialment fort en les regions amb alt grau de reforma.
This dissertation pursues the following objectives. First, it studies the factors driving the steady growth in both labor force participation and hours per worker of seniors, individuals above age 62, in the US since the mid 1980s. We use data from the Health and Retirement Study (HRS) to estimate a life-cycle model of labor supply, retirement, and wealth accumulation in order to contrast the labor supply behavior of two cohorts in the US: individuals born after World War I ("The Great Depression Kids"), and those born after the World War II ("The Baby Boomers"). We focus on the differences between these two cohorts in earning and health dynamics as well as policies that they face, a gradual increase in Normal Retirement Age and the elimination of the earnings test in 2000, as potential sources of change. The results demonstrate that the effects of policies and policy-unrelated factors are of similar magnitude. The elimination of the Earnings Test had the biggest impact of all policies. Jointly, the rise in out-of-pocket medical expenditures and the increase in life expectancy are the dominant factors among non policy-related ones. Second, we use the German Socio-Economic Panel (SOEP) to study the how the introduction of a federal minimum wage in Germany on January 1, 2015, affected individual reservations wages. We find that the reform was associated with an increase in reservation wages of approximately 4 percent at the low end of the distribution. Furthermore, the shifts in reservation wages and observed wages due to the minimum wage reform are comparable in their magnitude. We also show that German citizens adjust their reservation wages more than immigrants do. Third, use again the SOEP data to estimate the effect of the German minimum wage reform on unemployment duration. We find a very strong association of the reform with an increase in unemployment durations across young men. This effect is especially strong in the regions with high reform bite.

This thesis consists of three chapters. The first chapter studies the effects of an integration of local labor markets between France and Switzerland. It shows that removing barriers to worker mobility can improve the labor market outcomes of workers, even of those that do not move. The reason is that the option to work at a larger number of employers decreases a single firm’s wagesetting power. The second chapter estimates the elasticity of labor supply to individual firms in Switzerland with a discrete choice model where workers have correlated preferences across firms. The results show that allowing for correlated worker preferences across firms in the model increases the estimated degree of competition in the labor market. The last chapter studies the role of childbearing for gender differences in the careers of PhD scientists in the United States. It finds that one third of the gender gap in earnings after twenty years cannot be explained by the presence of children.
Esta tesis consta de tres capítulos. El primer capítulo estudia los efectos de una integración de los mercados laborales locales entre Francia y Suiza. El análisis demuestra que eliminar barreras a la movilidad de los trabajadores puede aumentar el empleo y los salarios, incluso de la gente que no se desplaza. Esto se debe a que la opción de trabajar para un mayor número de empleadores disminuye el poder de fijación de salarios de una sola empresa. El segundo capítulo estima la elasticidad de la oferta de mano de obra a las empresas en Suiza. Se aplica un modelo de elección discreta en el que los trabajadores tienen preferencias correlacionadas entre las empresas. Los resultados muestran que tener en cuenta las preferencias correlacionadas de los trabajadores aumenta el grado estimado de competencia en el mercado laboral. El último capítulo estudia cómo la presencia de niños impacta las diferencias entre los géneros en las carreras de los científicos de doctorado e nEstados Unidos. El análisis en cuentra que un tercio de la diferencia en los ingresos entre los géneros después de veinte años no puede explicarse por la presencia de niños.

En aquesta tesi, analitzo les causes i conseqüències del desajust entre les habilitats de treballadors i les habilitats requerides per la seva ocupació. També investigo els factors que determinen l’èxit de fertilització in vitro, els quals posseeixen importants implicacions sobre l’elecció professional i la fertilitat de les dones. En el primer capítol, calculo noves mesures de desajust d’habilitats per habilitats alfabetitzadores i numèriques. Les mesures existents de desajust d’habilitats basades en les dades de l’Avaluació Internacional de Competències d’Adults (PIAAC) només utilitzen informació de la part del treballador i ignoren el tipus de treball que aquests realitzen. Per a 13 dels països de l’OCDE, mesuro les habilitats dels treballadors utilitzant la puntuació en exàmens individuals i les habilitats requerides per les seves professions amb dades de requisits ocupacionals de la Xarxa d’Informació Ocupacional. Mesuro 1) la correlació entre les habilitats i els requisits ocupacionals a cada país i 2) el percentatge de treballadors el desajust dels quals és superior a 50. Mostro que les mesures de desajust que proposo tenen una correlació negativa amb la productivitat laboral agregada superior a les mesures existents. En el segon capítol, col·laborant amb en Andrii Parkhomenko, estudiem la relació entre les prestacions d’atur i el canvi d’ocupació. Pot afectar el nivell de les prestacions d’atur al tipus de treball posterior a l’atur? Utilitzant dues bases de dades d’Estats Units, el SIPP i el NLSY79, documentem nous resultats envers la relació entre les prestacions d’atur i el canvi d’ocupació. Primerament, els aturats que tenen dret a prestacions més altes canvien d’ocupació en menor freqüència. En segon lloc, entre els que si canvien d’ocupació, les prestacions més altes tenen una correlació positiva amb el requisit d’habilitats en la nova ocupació. Finalment, el primer resultat és més pronunciat per a treballadors que tenen una permanència més llarga a la seva antiga ocupació i, en canvi, en el segon resultat, es més pronunciat entre els que tenen una permanència més curta. Proposem un model d’agents i llocs de treball heterogenis per estudiar l’efecte de les prestacions d’atur en els sous i el tipus d’ocupacions de treballadors que han estat a l’atur. El model estimat ens permet mostrar que, proporcionant prestacions més altes a treballadors amb menys experiència, el resultat és de sous mitjans més alts. En el tercer capítol, col·laborant amb la Fane Groes, la Daniela Iorio, la Mallory Leung i el Raul Santaeulalia-Llopis, estudiem els factors que determinen l’èxit de la fertilització in vitro (FIV), utilitzant dades administratives de Dinamarca (1995-2009). Trobem que l’educació materna afecta de manera significativa a l’èxit de FIV (nascut viu). Comparant les fertilitzades que no van acabar l’educació secundària envers les que tenen un diploma universitari o de secundària, tenen un 21% i un 13% més de probabilitat d’aconseguir un nascut viu a través de FIV, respectivament. Argumentem que el gradient d’educació reflexa diferències en productivitat en FIV (com de bé les dones segueixen les instruccions del tractament de FIV) i en factors psicològics (com les afecta assumir el tractament). Desenvolupem un model dinàmic de dones utilitzant la tecnologia de FIV, on les dones tenen productivitats diferents en FIV i nivells diferents d’estrès psicològic associat al tractament. En el model, les dones equilibren la probabilitat positiva d’obtenir un fill i el cost psicològic del tractament. El model estimat demostra que el 95% del gradient es pot explicar amb les diferencies en la productivitat en FIV.
En esta tesis analizo las causas y consecuencias del desajuste entre las habilidades de trabajadores y las habilidades requeridas por su ocupación. Estudio cómo medir este desajuste y cómo se ve afectado por el nivel de prestaciones de desempleo mediante su efecto en el cambio de ocupación. También investigo los factores que determinan el éxito de la fertilización in vitro, los cuales tienen implicaciones importantes sobre la elección profesional y de fertilidad de las mujeres. En el primer capítulo, calculo nuevas medidas de desajuste de habilidades para habilidades alfabetizadoras y numéricas. Las medidas existentes de desajuste de habilidades basadas en los datos de la Evaluación Internacional de Competencias de Adultos (PIAAC) usan información solo de la parte del trabajador e ignoran el tipo de trabajos que estos realizan. Para 13 de los países de la OCDE, mido las habilidades de los trabajadores usando la puntuación obtenida en exámenes individuales y las habilidades requeridas por sus profesiones con datos de requisitos ocupacionales de la Red de Información Ocupacional. Mido 1) la correlación entre las habilidades y los requisitos ocupacionales en cada país y 2) el porcentaje de trabajadores para los que el desajuste es mayor de 50. Muestro que las medidas de desajuste que propongo tienen una correlación negativa con la productividad laboral agregada más alta que las medidas existentes. En el segundo capítulo, en colaboración con Andrii Parkhomenko, estudio la relación entre las prestaciones de desempleo y el cambio de ocupación. ¿Puede afectar el nivel de las prestaciones de desempleo al tipo de trabajos posteriores al desempleo? Usando dos bases de datos de Estados Unidos, el SIPP y el NLSY79, documentamos nuevos resultados sobre la relación entre las prestaciones de desempleo y el cambio de ocupación. Primero, los desempleados que tienen derecho a prestaciones más altas cambian de ocupación menos frecuentemente. Segundo, entre los que sí cambian de ocupación, las prestaciones más altas tienen una correlación positiva con el requisito de habilidades en la nueva ocupación. Por último, el primer resultado es más pronunciado para trabajadores que tienen una permanencia más larga en su antigua ocupación, mientras que el segundo resultado es más pronunciado entre quienes tienen una permanencia más corta. Proponemos un modelo de agentes y trabajos heterogéneos para estudiar el efecto de las prestaciones de desempleo en los salarios y el tipo de ocupaciones de trabajadores que pasan por el desempleo. El modelo estimado nos permite mostrar que proporcionando prestaciones más altas a trabajadores con menos experiencia, los salarios medios son más altos. En el tercer capítulo, en colaboración con Fane Groes, Daniela Iorio, Mallory Leung and Raul Santaeulalia-Llopis, estudio los factores que determinan el éxito de la fertilización in vitro (FIV), usando datos administrativos de Dinamarca (1995-2009). Determinamos que la educación materna afecta de manera significativa al éxito de FIV (nacido vivo). Comparado con las fertilizadas que no acabaron la secundaria, quienes tienen diploma universitario o de secundaria tienen un 21% o un 13%, respectivamente, más probabilidades de lograr un nacido vivo mediante FIV. Argumentamos que el gradiente de educación refleja diferencias en productividad en FIV (cómo de bien las mujeres siguen las instrucciones del tratamiento de FIV) y en factores psicológicos (cómo les afecta asumir el tratamiento). Desarrollamos un modelo dinámico de mujeres usando la tecnología de FIV, donde las mujeres tienen distintas productividades en FIV y distintos niveles de estrés psicológico asociado con el tratamiento. En el modelo, las mujeres equilibran la probabilidad positiva de obtener un hijo y el coste psicológico del tratamiento. El modelo estimado demuestra que el 95% del gradiente se puede explicar con las diferencias en la productividad en FIV.
In this dissertation, I analyze the determinants and consequences of a mismatch between the skills of workers and the skills required by the occupation they work in. I study how skills mismatch can be measured and how it is affected by unemployment insurance policy through occupational switching. I also investigate the determinants of in vitro fertilization success, which has important implications for women's career and fertility choices. In Chapter 1, I compute new measures of skills mismatch for literacy and numeracy based on how well workers sort to jobs. Existing measures of skills mismatch based on the Programme for the International Assessment of Adult Competencies (PIAAC) use information only on the worker's side and ignore jobs that workers perform or the sorting between workers and jobs. For 13 OECD countries from the PIAAC, I measure workers' skills by their individual test scores and the skill requirements of their jobs by the occupational requirements from the Occupational Information Network. I then look at 1) the correlation between the skills and skill requirements in each country and 2) the percentage of workers for whom the absolute difference between the percentile rank of their skills and the skill requirements of their jobs is larger than 50. I show that across countries the new measures of mismatch correlate negatively with measures of aggregate labor productivity, and the correlation is stronger than the existing measures. In Chapter 2, joint with Andrii Parkhomenko, we study the relationship between unemployment benefits and occupational switching. Do unemployment benefits only provide income support for workers during their unemployment spells, or do they also affect post-unemployment outcomes? Using two US data sets, the SIPP and the NLSY79, we document three new facts on the relationship between unemployment benefits and occupational switching. First, unemployed individuals who are eligible for higher unemployment benefits are less likely to switch occupations. Second, conditional on switching, having higher unemployment benefits correlates positively with the cognitive skills requirements of the new occupation. Finally, while the first fact is stronger for workers with longer occupational tenure, the second fact is stronger for workers with shorter occupational tenure. We then build a search model with heterogeneous individuals and jobs to study how unemployment benefits affect skill requirements and wages for workers who experience employment-unemployment-employment transitions. Using the estimated model we find that providing larger benefits to workers with shorter labor market experience results in higher average wages. In Chapter 3, joint with Fane Groes, Daniela Iorio, Mallory Leung and Raul Santaeulalia-Llopis, we study the determinants of in vitro fertilization (IVF) success using administrative data from Denmark (1995-2009). We find that maternal education significantly determines IVF success (live birth). Compared with high school dropouts, patients with a college (high school) degree have a 21% (13%) higher chance of attaining a live birth through IVF. We argue that the education gradient in IVF reflects educational disparities in IVF productivity (how well women follow the IVF procedure) and the psychological factors (how they are affected by undertaking the treatments). We develop a dynamic model of women using IVF technology in which women differ in IVF productivity and the psychological stress associated with undergoing the treatment. In the model, women face a trade-off between a positive probability of succeeding in getting a child through IVF and the psychological cost associated to undergoing the treatment. The estimated model sheds light on the importance of each of the factors in explaining the IVF educational gradient. In particular, we find that differences in average IVF productivity across education groups account for more than 95% of the observed gradient.

This thesis examines two topics in labor economics and policy evaluation. Chapter 1 provides an introduction. Chapter 2 addresses the estimation of the effects of the minimum wage on labor market outcomes in developing countries. The main finding is that, even in the absence of policy variation, that is, when the same level of the minimum wage holds for all the workers in the data, it is still possible to recover the effects of this policy under particular assumptions of a dual economy model. Using this result, the effects of the minimum wage in Brazil from 2001 to 2009 are estimated. It is shown that the minimum wage has considerably increased average wages and reduced wage inequality. However, these effects are accompanied by higher unemployment and an increase in the size of the informal sector. Overall, the loss of tax revenues from the outflow of workers to the informal sector and unemployment more than offsets the increase in wages. Thus, this minimum wage policy contributes to a decrease in the labor tax revenues collected by the government. Chapter 3 also considers estimation of the effects of the minimum wage on labor market outcomes in developing countries. However, this chapter explores the use of less restrictive assumptions regarding the joint distribution of sectors and wages. To ease the estimation of the model parameters, a parametric approach (maximum likelihood) is used. The results validate the conclusions obtained in the previous chapter. Chapter 4 investigates the estimation of policy effects in partially randomized designs. It is shown that when randomization is implemented in a stratified way, the usual tests of balance of characteristics between treatment and control groups can suffer from size distortions, lack of power, or both. A solution to this problem is proposed, and its performance is compared with the baseline estimators in a simulation. It is shown that the proposed test possesses the desirable characteristics of correct nominal size and consistency. Finally, to illustrate the use of these techniques, a stratified, randomized job training program is analyzed.
Arts, Faculty of
Vancouver School of Economics
Graduate

I model a hiring process in which a candidate is evaluated sequentially by two agents of a firm. Each agent observes an independent signal of the candidate's productivity. I show that if the second agent values a non-productive attribute of a given candidate, that candidate may be less likely to be hired than a candidate lacking the preferred non-productive attribute due to the first agent adjusting their own quality threshold to compensate. I go on to empirically explore the behavior of prisoners in Oregon based on exogenous shocks to the status quo. These shocks include changes in the generosity of sentence reductions available to certain prisoners and the implementation of a variety of policies that have made it less costly for prisoners to communicate with the outside world. I find that prisoners respond to behavioral reviews with improved behavior on the days immediately before and after a review, but increasing available sentence reductions awarded for good behavior does not reduce misconduct rates among inmates. Furthermore, I find that increasing the ability of prisoners to communicate with friends and family using technology has not led to the decrease in in-person visitation that many have predicted. Instead, total communication seems to have increased in Oregon prisons. Given the extensive literature that suggests increased communication with the outside world reduces a prisoner's likelihood of recidivating, this result may indicate that introducing communication technology and making it more affordable may be a cost effective policy to prevent future crimes. This dissertation includes unpublished co-authored material.

In Chapter 1, we estimate the causal effect of homeownership on employment using a regression discontinuity design that exploits an arbitrary threshold arising from a homeownership program that assigns a house to low-income families in Chile. We establish that homeownership decreases employment by between 3.95 and 5.60 percentage points. These results contrast with previous non-experimental literature, which has often found positive effects. Our findings seem to be driven by children of the heads of households not entering the labor market, rather than workers being motivated to leave their job. We also find that residential stability and neighbourhood quality are unlikely to drive the effects, contrary to what has been proposed by previous theoretical papers. Chapter 2 studies the effect of homeownership on the academic achievements of children in the household, using a regression discontinuity design that exploits an arbitrary threshold arising from a voucher-based homeownership assistance program in Chile. Despite the fact that the homeownership program substantially increases the quality of the homes in which students live, I do not find that it affects their test scores. In a subgroup analysis, I find that homeownership decreases the test scores of elementary school students by 0.16 to 0.18 standard deviations. These effects may be due to the fact that, when receiving a voucher, many families cease to live with a hosting family, who are often close relatives (e.g. grandparents), and begin living in their own house. This seems to suggest that students experience a decrease in learning support that was previously provided to them by those close relatives. My results contrast with previous studies, which have often found positive effects of homeownership on students' academic achievements. In Chapter 3, I exploit a plausibly exogenous variation in the characteristics of principals to explore their effectiveness in improving school outcomes. Using a difference-in-differences approach, I find that principals appointed under the reform tend to be younger, less experienced, and more highly educated. Drawing from a panel dataset of teacher responses, I observe that the new principals improve the general climate in their schools by decreasing violence and expanding community engagement. On the other hand, they do not improve teacher-monitoring practices, teachers' pedagogical methods, or students' test results. A plausible explanation for these results is the lack of positive or negative incentives given to principals based on the performance of employees in their schools. Evidence in this paper suggests that, in certain institutional settings, school principals do not seem to be as relevant as is often assumed.

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Economics, 2011.
Cataloged from PDF version of thesis.
Includes bibliographical references.
This dissertation consists of three chapters on topics in labor economics. In the first chapter, I present a model in which firms under-invest in hiring novice workers because they don't receive the full benefit of discovering novice talent. A firm must pay a cost to hire a novice worker. When it does, it obtains both labor services and information about the worker's productivity. This information has option value as a productive novice can be rehired. However, if competing firms also observe the novice's productivity, the option value of hiring accrues to the worker, not the employer. Firms will accordingly under-invest in discovering novice talent unless they can claim the benefit from doing so. I test this model's relevance in an online labor market by hiring 952 workers at random from an applicant pool of 3,767 for a 10-hour data entry job. In this market, worker performance is publicly observable. Consistent with the model's prediction, novice workers hired at random obtained significantly more employment and had higher earnings than the control group, following the initial hiring spell. A second treatment confirms that this causal effect is likely explained by information revelation rather than skills acquisition. Providing the market with more detailed information about the performance of a subset of the randomly-hired workers raised earnings of high-productivity workers and decreased earnings of low-productivity workers. Due to its scale, the experiment significantly increased the supply of workers recognized as high-ability in the market. This outward supply shift raised subsequent total employment and decreased average wages in occupations affected by the experiment (relative to non-treated occupations), implying that it also increased the sum of worker and employer surplus. Under plausible assumptions, this additional total surplus exceeds the social cost of the experiment. In the second chapter, I estimate the sensitivity of students' college application decisions to a small change in the cost of sending standardized test scores to colleges. In 1997, the ACT increased the number of free score reports it provided to students from three to four, maintaining a $6 marginal cost for each additional report. In response to this $6 cost change, ACT-takers sent more score reports and applications, while SAT-takers did not. ACT-takers also widened the range of colleges to which they sent scores. I show that students' response to the cost change is inconsistent with optimal decision-making but instead suggests that students use rules of thumb to make college application decisions. Sending additional score reports could, based on my estimates, substantially increase low-income students' future earnings. In the third chapter, I analyze the effects of the Tennessee Education Lottery Scholarships, a broad-based merit scholarship program that rewards students for their high school achievement with college financial aid. Since 1991, over a dozen states, comprising approximately a quarter of the nation's high school seniors, have implemented similar merit scholarship programs. Using individual-level data from the ACT exams, I find that the program did not achieve one of its stated goals, inducing more students to prefer to stay in Tennessee for college, but it did induce large increases in performance on the ACT. This suggests that policies that reward students for performance affect behavior and may be an effective way to improve high school achievement.
by Amanda Dawn Pallais.
Ph.D.

Economics is the art of providing unlimited human needs with scarce resources as it comes to teaching. Very few of these resources have been used in such a way that they are ready in nature. Almost all of the goods and services that can meet the needs are obtained by the application of human labor (labor force) and capital to commodity. In recent years, labor capital and commodity factors were first added to entrepreneurs and then technology. Thus, the system we call the production process emerges. This study based on the information economy, the information economics indicator with Turkey's latest data is intended to demonstrate the performance. First of all, after the conceptual framework of the information economics, its distinctive qualities and development process, the effects of these developments on societies and economies will be evaluated. For the intended purpose, indicators such as R&D activities and R&D personnel employment, patent application and registration numbers, number of scientific publications and access to information were examined in Turkish economy. Finally, Turkey made the comparison with developed countries in economic terms and has been observed that the desired level of the Turkish economy in terms of the information economics.

Starting from the mid-1970s, there has been a significant disbalance in labor markets in almost all world economies. The postulates of classical economics that the causality between labor productivity and workers' compensation is positive, and that the increase in marginal labor productivity is followed by a directly proportional increase in workers' compensation, no longer stand on solid foundations. In the last few decades, there has been a significant distortion of the functional distribution of income, especially between labor and capital. The widely held thesis that "a rising tide will lift all boats," implying that increased labor productivity will be equally distributed among workers, is becoming less relevant. The world, especially EU economies notice a significant disruption in the relationship between productivity growth and labor compensation. In the paper, an attempt is made to analyze the state of the labor market in the Republic of North Macedonia, through the prism of productivity and labor compensation. Given the fact that there are significant differences in the degree of efficiency and productivity in individual sectors, this analysis focuses on the relationship between the distribution of productivity and labor compensation in different industries. Based on the results of the study, the Republic of North Macedonia exhibits the phenomenon of Reverse Decoupling, where the trend of labor productivity lags behind the trend of workers' compensation. In contrast, productivity and workers' compensation show significant differences by different sectors.

A growing number of applications involve settings where, in order to infer heterogeneous effects, a researcher compares various units. Examples of research designs include children moving between different neighborhoods, workers moving between firms, patients migrating from one city to another, and banks offering loans to different firms. We present a unified framework for these settings, based on a linear model with normal random coefficients and normal errors. Using the model, we discuss how to recover the mean and dispersion of effects, other features of their distribution, and how to construct predictors of the effects. We provide moment conditions on the model’s parameters, and outline various estimation strategies. One of the main objectives of the paper is to clarify some of the underlying assumptions by highlighting their economic content, and to discuss and inform some of the key practical choices.