Labor Markets

Working Paper
Goldin C. How Japan and the US Can Reduce the Stress of Aging. Working Paper.Abstract

The Japanese are becoming older. Americans are also becoming older. Demographic stress in Japan, measured by the dependency ratio (DR), is currently about 0.64. In the immediate pre-WWII era it was even higher because Japan’s total fertility rate (TFR) was in the 4 to 5 range. As the TFR began to decline in the post-WWII era, the DR fell and hit a nadir of 0.44 in 1990. But further declining fertility and rising life expectancy caused the DR to shoot up after 1995.

In this short note I simulate the DR under various conditions and make comparisons with the US. Japan has experienced a large increase in its DR because its fertility rate is low, its people are long lived and it has little immigration. Fertility is the largest of the contributors in Japan. If there are no demographic changes in Japan, the DR will be 0.88 by 2050. I also assess the role of the “baby boom” of the late 1940s and show that it was compensatory, unlike that in the US. The good news is that healthier older longer-lived people will continue to be employed for many more years than previously and that is one way to reduce demographic stress.

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2020
Autor D, Goldin C, Katz LF. Extending the Race between Education and Technology. American Economic Review, Papers and Proceedings. 2020;110 (May) :347-51. Publisher's VersionAbstract
The race between education and technology provides a canonical framework that does a remarkable job of explaining US wage structure changes across the twentieth century. The framework involves secular increases in the demand for more-educated workers from skill-biased technological change, combined with variations in the supply of skills from changes in educational access. We expand the analysis backward and forward. The framework helps explain rising skill differentials in the nineteenth and twenty-first centuries but needs to be augmented to illuminate the recent convexification of education returns and implied slowdown in the growth of the relative demand for college workers.
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Goldin C, Kerr SP, Olivetti C. Why Firms Offer Paid Parental Leave: An Exploratory Study. In: Paid Leave for Caregiving: Issues and Answers. Washington, D.C. Brookings Institution ; 2020. pp. 66-92. Publisher's VersionAbstract

Why do competitive firms in the US provide paid parental leave (PPL)? Which firms do and to what extent? We use several firm- and individual-level data sets to answer these questions. These include the BLS-Employee Benefit Survey (EBS) for 2010 to 2018 and an extensive firm-level data collection that we compiled. Our work is undergirded by a two-period model with competitive firms whose workers vary by their optimal firm-specific training and the probability that each will remain on the job after PPL is taken. We find that firm-provided PPL has greatly increased in the last two decades and generally covers new fathers. The levels of provision differ greatly by the industry, firm size, and the degree of firm-specific training. But even the top-of-the-line firm in the US provides fewer fully paid parental weeks than does the median OECD nation.

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2019
Alsan M, Goldin C. Watersheds in Child Mortality: The Role of Effective Water and Sewerage Infrastructure, 1880 to 1920. Journal of Political Economy. 2019;127 (2) :586-638.Abstract

We explore the first period of sustained decline in child mortality in the U.S. and provide estimates of the independent and combined effects of clean water and effective sewerage systems on under-five mortality. Our case is Massachusetts, 1880 to 1920, when authorities developed a sewerage and water district in the Boston area. We find the two interventions were complementary and together account for approximately one-third of the decline in log child mortality during the 41 years. Our findings are relevant to the developing world and suggest that a piecemeal approach to infrastructure investments is unlikely to significantly improve child health.

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2018
Goldin C, Katz LF. Women Working Longer: Facts and Some Explanations. In: Women Working Longer: Increased Employment at Older Ages. Chicago: University of Chicago Press ; 2018. pp. 11-54.Abstract

American women are working more, through their sixties and even into their seventies. Their increased participation at older ages started in the late 1980s before the turnaround in older men’s labor force participation and the economic downturns of the 2000s. The higher labor force participation of older women consists disproportionately of those working at full-time jobs. Increased labor force participation of women in their older ages is part of the general increase in cohort labor force participation. Cohort effects, in turn, are mainly a function of educational advances and greater prior work experience. But labor force participation rates of the most recent cohorts in their forties are less than those for previous cohorts. These factors may suggest that employment at older ages will stagnate or even decrease. But several other factors will be operating in an opposing direction and leads us to conclude that women are likely to continue to work even longer.

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Women Working Longer: Increased Employment at Older Ages
Goldin C, Katz LF. Women Working Longer: Increased Employment at Older Ages. Chicago, IL: University of Chicago Press; 2018. Publisher's VersionAbstract
Today, more American women than ever before stay in the workforce into their sixties and seventies. This trend emerged in the 1980s, and has persisted during the past three decades, despite substantial changes in macroeconomic conditions. Why is this so? Today’s older American women work full-time jobs at greater rates than women in other developed countries.
            In Women Working Longer, editors Claudia Goldin and Lawrence F. Katz assemble new research that presents fresh insights on the phenomenon of working longer. Their findings suggest that education and work experience earlier in life are connected to women’s later-in-life work.  Other contributors to the volume investigate additional factors that may play a role in late-life labor supply, such as marital disruption, household finances, and access to retirement benefits.  A pioneering study of recent trends in older women’s labor force participation, this collection offers insights valuable to a wide array of social scientists, employers, and policy makers.
2017
Goldin C, Kerr SP, Olivetti C, Barth E. The Expanding Gender Earnings Gap: Evidence from the LEHD-2000 Census. American Economic Review: Papers and Proceedings. 2017;107 (5) :110-114.Abstract
The gender earnings gap is an expanding statistic over the lifecycle. We use the LEHD Census 2000 to understand the roles of industry, occupation, and establishment 14 years after leaving school. The gap for college graduates 26 to 39 years old expands by 34 log points, most occurring in the first 7 years. About 44 percent is due to disproportionate shifts by men into higher-earning positions, industries, and firms and about 56 percent to differential advances by gender within firms. Widening is greater for married individuals and for those in certain sectors. Non-college graduates experience less widening but with similar patterns.
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Goldin C, Mitchell J. The New Lifecycle of Women’s Employment: Disappearing Humps, Sagging Middles, Expanding Tops. Journal of Economic Perspectives. 2017;31 (1) :161-182. PDF