paper - Universitat Pompeu Fabra

More documents

Recommendations

Info

Table 3: Employment and Wage Effects (1) (2) (3) (4) (5) (6) Employment Probability Log Wages OLS IV OLS IV Employment rate coworkers 0.073** 0.051 0.753* 0.054** 0.067* 0.174 [0.031] [0.048] [0.387] [0.023] [0.036] [0.264] Log number of coworkers 0.002 0.004 -0.015 0.006 0.008 0.005 [0.005] [0.007] [0.013] [0.004] [0.005] [0.009] Tenure in closing establishment -0.001 -0.001 0.000 0.001 0.001 0.001 [0.002] [0.002] [0.002] [0.001] [0.001] [0.001] No. of years working (last 5 years) 0.043*** 0.040*** 0.050*** 0.009* 0.004 0.006 [0.005] [0.006] [0.008] [0.005] [0.005] [0.007] Average establishment size (last 5 years) 0.000 0.000 0.000 0.000 0.000 0.000 [0.000] [0.000] [0.000] [0.000] [0.000] [0.000] Annual wage growth (last 5 years) -0.000*** -0.000*** -0.000*** -0.082*** -0.062*** -0.064*** [0.000] [0.000] [0.000] [0.019] [0.019] [0.019] Log wage in closing establishment in 1995 0.020 0.024 0.021 0.697*** 0.666*** 0.666*** [0.012] [0.016] [0.016] [0.024] [0.035] [0.035] Average age coworkers -0.002 -0.005 -0.005 0.003 0.021*** 0.020*** [0.010] [0.012] [0.012] [0.006] [0.008] [0.008] Average age coworkers squared 0.000 0.000 0.000 0.000 -0.000*** -0.000** [0.000] [0.000] [0.000] [0.000] [0.000] [0.000] Share coworkers medium education -0.011 0.010 -0.006 0.080*** 0.028 0.025 [0.032] [0.042] [0.043] [0.024] [0.030] [0.030] Share coworkers high education -0.110* -0.137* -0.156* 0.203*** 0.061 0.06 [0.064] [0.080] [0.082] [0.055] [0.063] [0.063] Share female coworkers -0.054* -0.079** -0.074* -0.011 -0.103*** -0.102*** [0.030] [0.037] [0.038] [0.024] [0.029] [0.029] Share immigrant coworkers -0.040 -0.044 0.059 -0.003 -0.041 -0.026 [0.041] [0.059] [0.084] [0.031] [0.039] [0.053] Establishment fixed effects yes yes yes yes Observations 10,916 10,661 10,659 7,789 7,435 7,433 Number of groups 1,559 1,558 1,375 1,374 1st stage statistics employment rate coworkers Share coworkers in mass-layoffs -0.131*** -0.138*** [0.016] [0.021] F-stat 1st stage 65.1 42.7 Note: Additional controls included in all specifications are the displaced worker's potential experience and its square, education level and immigrant status, as well as dummies for the number of different employers and dummies for the main sector of activity during the network building phase. The instrumental variable for the coworker employment rate is the share of working former coworkers who, after separation, worked in a large establishment (>50 employees) and separated from that establishment as part of a mass-layoff. Standard errors are robust and clustered at the closing establishment level. A (*) denotes statistical significance at the 10% level, a (**) at the 5% level, and a (***) at the 1% level.
Table 4: Robustness Checks Employment (1) (2) (3) (4) (5) (6) (7) Establishment/ Education Fixed Effects No Controls Using Masslayoffs in Medium and Large Establishments First Lag of Mass-layoffs Excluded Wage Control Competitors Network Size Control Employment rate coworkers 0.658 0.644* 0.601** 0.419 0.829* 0.677 0.856** [0.402] [0.379] [0.260] [0.462] [0.436] [0.415] [0.417] Log number of coworkers -0.012 -0.008 -0.011 -0.006 -0.007 -0.005 [0.014] [0.015] [0.010] [0.015] [0.011] [0.015] Average log wage coworkers in t -0.070 [0.048] Employment rate two-link away contacts -0.240 [0.452] Log number two-link away contacts -0.005 [0.012] Number of coworkers (in 1,000) -0.101 [0.140] Number of coworkers (in 1,000) squared 0.082 [0.104] Observations 10,007 10,659 10,659 10,652 10,502 10,642 10,659 Number of groups 1,822 1,558 1,558 1,557 1,528 1,555 1,558 F-Stat/Kleibergen-Paap statistic 1st stage 67.1 49.5 142.0 41.1 59.0 26.8 59.1 Note: For a list of the additional control variables included (apart from column (2)), see Table 3, column (3). Apart from columns (3) and (4), the instrumental variable for the coworker employment rate is the share of working former coworkers who, after separation, worked in a large establishment (>50 employees) and separated from that establishment as part of a mass-layoff. In column (1), a full set of establishment/education group fixed effects is included. In column (2), the only control variables included are the network size and a full set of establishment fixed effects. In column (3), the instrument is calculated for mass-layoffs in medium and large establishments (>10 employees). In column (4), masslayoffs that occurred in the year immediately prior to displacement have been excluded from the construction of the instrument. In column (5), the average wage of the coworkers in the network is included as an additional control variable. In column (6), the employment rate and log number of a displaced worker's two-link away contacts are included as additional control variables and the employment rate instrumented with the share of two-link away contacts who worked in a large establishment (>50 employees) and separated from that establishment as part of a mass-layoff. In column (7), actual numbers of coworkers (in 1,000) and their square are used rather than their log to control for the overall network size. Standard errors are robust and clustered at the closing establishment level. A (*) denotes statistical significance at the 10% level, a (**) at the 5% level, and a (***) at the 1% level.
Page 1 and 2: Coworker Networks in the Labour Mar
Page 3 and 4: contrast to most other network defi
Page 5 and 6: hallmates (Marmaros and Sacerdote,
Page 7 and 8: To test these predictions, I estima
Page 9 and 10: skill sets, they can serve as exoge
Page 11 and 12: 3 Data and Descriptives The data us
Page 13 and 14: ers worked in basic manufacturing,
Page 15 and 16: association between the employment
Page 17 and 18: just establishment fixed effects as
Page 19 and 20: to the network building phase. If m
Page 21 and 22: some coworkers are better providers
Page 23 and 24: of a weak network. This is maybe no
Page 25 and 26: References Akerlof, G. A. (1980). A
Page 27 and 28: Duflo, E. and E. Saez (2003). The r
Page 29 and 30: Lalive, R. and P. Parrotta (2011).
Page 31 and 32: Weinberg, B., P. B. Reagan, and J.
Page 33: Table 2: Summary Statistics - Befor
Page 37 and 38: (1) (2) (3) (4) (5) (6) (7) (8) (9)
Page 39 and 40: Table 8: Heterogeneity Across Infor

paper - Universitat Pompeu Fabra

Create successful ePaper yourself

Delete template?

Save as template?