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- Bingley, Paul, et al.
(author)
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Brothers in Arms Spillovers from a Draft Lottery
- 2021
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In: Journal of Human Resources. - 0022-166X. ; 56:1, s. 225-268
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Journal article (peer-reviewed)abstract
- While family members tend to have similar labor market outcomes, measuring the contribution of behavioral spillovers is difficult. To identify spillovers between brothers, we exploit Denmark's largest random assignment of young men—to eight months of military service, where service status of brothers is correlated, but draft lottery numbers are not. We find average spillovers of elder brother service on younger brother service of 7 percent, and as high as 55 percent for closely spaced brothers without sisters. Elder brother's military service affects his own occupational choice and his younger brother's service by discouraging any refusal to serve.
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3. |
- Bingley, Paul, et al.
(author)
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Employer Pay Policies, Public Transfers and the Retirement Decisions of Men and Women in Denmark
- 2004
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In: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 48:1, s. 181-200
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Journal article (peer-reviewed)abstract
- The empirical retirement literature measures individual responses to variations in income flows due to public transfers, private individual or employer-provided pensions. We estimate a model accounting for the incentive effects from these sources. A dynamic structural model is extended to allow both individual and employer heterogeneity. This is applied to a Danish matched panel of workers and establishments, spanning a period of reforms to a public early retirement programme. Employer-specific compensation is found to be an important determinant of work and retirement income flows. Employer effects on retirement age are only found among sub-samples where access to public transfers is limited.
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4. |
- Bingley, Paul, et al.
(author)
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Measurement error in income and schooling, and the bias of linear estimators
- 2017
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In: Journal Labor Economics. - : University of Chicago Press. - 0734-306X .- 1537-5307. ; , s. 1117-1148
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Journal article (peer-reviewed)abstract
- We propose a general framework for determining the extent of measurement error bias in OLS and IV estimators of linear models, while allowing for measurement error in the validation source. We apply this method by validating Survey of Health, Ageing and Retirement in Europe (SHARE) data with Danish administrative registers.Contrary to most validation studies, we find measurement error in income is classical, once we account for imperfect validation data. We find non-classical measurement error in schooling, causing a 38 percent amplification bias in IV estimators of the returns, with important implications for the program evaluation literature.
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5. |
- Bingley, Paul, et al.
(author)
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Public pension programmes and the retirement of married couples in Denmark
- 2007
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In: Journal of Public Economics. - : Elsevier. - 0047-2727 .- 1879-2316. ; 91:10, s. 1878-1901
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Journal article (peer-reviewed)abstract
- In this paper we study the economic determinants of the joint retirement process of married couples. We propose a tractable dynamic discrete choice model for retirement decisions which allows for non-trivial saving behaviour. We estimate the model on a 1% sample of Danish couples of potential retirement age drawn from a population-based administrative register. The introduction and subsequent reforms of a publicly financed early retirement programme provide us with variation in the data to insure identification of the parameters of interest: the elasticities of participation/retirement with respect to income flows. Our estimates imply a significant asymmetry in the sensitivity of retirement behaviour of men and women with respect to variation in their own, or their spouse's, income flows.
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6. |
- Bingley, Paul, et al.
(author)
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The Effects of Schooling on Wealth Accumulation Approaching Retirement
- 2017
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Other publication (other academic/artistic)abstract
- Education and wealth are positively correlated for individuals approaching retirement, but the direction of the causal relationship is ambiguous in theory and has not been identified in practice. We combine administrative data on individual total wealth with a reform expanding access to lower secondary school in Denmark in the 1950s, finding that schooling increases pension annuity claims but reduces the non-pension wealth of men in their 50's. These effects grow stronger as normal retirement age approaches. Labour market mechanisms are key, with schooling increasing job mobility, reducing housing equity, increasing leverage, and improving occupational pension benefits.
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7. |
- Bingley, Paul, et al.
(author)
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The Incidence of Income Tax on Wages and Labour Supply
- 2002
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In: Journal of Public Economics. - : Elsevier. - 0047-2727 .- 1879-2316. ; 83:2, s. 173-194
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Journal article (peer-reviewed)abstract
- In the simple framework of a static model for equilibrium wages and labour supplies, we show that the incidence of income tax on equilibrium wages can be measured independently from the individual labour supply elasticity. This extends recent work by [Journal of Labour Economics, 15(3) (1997) S72-S101] and [Journal of Public Economics, 65 (1997) 119-145], who estimate tax incidence on earnings, and [Econometrica, 66(4) (1998) 827-861] and [NBER Working Paper 5023 (1995)], who estimate labour supply elasticities, Our measurements are based on a large multi-level longitudinal data set of Danish private sector establishments and workers. We show that, allowing for labour supply response, there is strong evidence for partial shifting of the burden of income tax from worker to employer. Higher marginal tax rates are associated with increases in gross wages and earnings
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8. |
- Bingley, Paul, et al.
(author)
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The Opportunity Costs of Mandatory Military Service : Evidence from a Draft Lottery
- 2020
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In: Journal of Labor Economics. - : University of Chicago Press. - 1537-5307 .- 0734-306X. ; 38:1, s. 39-66
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Journal article (peer-reviewed)abstract
- Conscription forces young men to serve in the military, irrespective of their opportunity costs. Using random assignment in the Danish draft lottery, we find a negative average effect of peacetime military service on earnings, an effect varying by ability, with high-ability men facing a $23,000 lifetime earnings penalty but with low-ability men facing none. This gradient is robust to different measures of labor market prospects. Educational disruption is an important mechanism, while service has little effect on health or criminal activity. The opportunity costs of conscription are borne by men with the best labor market prospects.
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9. |
- Bäckström, Peter, 1985-
(author)
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Empirical essays on military service and the labour market
- 2023
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Doctoral thesis (other academic/artistic)abstract
- This thesis consists of an introductory part and four self-contained papers that study empirical questions related to military service and the labour market.Paper [I] studies the relationship between civilian labour market conditions and the number of people who volunteer for military service in Sweden. I use panel data on Swedish counties for the years 2011 through 2015 and study the effect of civilian unemployment on the rate of applications from individuals aged 18 to 25 to initiate basic military training. The results indicate a positive and statistically significant relationship between the unemployment rate and the application rate, and suggest that the civilian labour market environment can give rise to non-trivial fluctuations in the supply of volunteers to the Swedish military.Paper [II] studies how local labour market conditions influence the quality composition of those who volunteer for military service in Sweden. I estimate a fixed-effects regression model on a panel data set containing cognitive ability test scores for those who applied for military basic training across Swedish municipalities during the period 2010 to 2016. The main finding is that if civilian employment rates at the local level go up, the average test score of those who volunteer for military service goes down. The results suggest that, due to the way in which different types of individuals select themselves into the military, the negative impact of a strong civilian economy on recruitment volumes is reinforced by a deterioration in recruit quality.Paper [III] studies the effect of peacekeeping on post-deployment earnings for military veterans. Using Swedish administrative data, we follow a sample of more than 11,000 veterans who were deployed for the first time during the period 1993-2010 for up to nine years after returning home. To deal with selection bias, we use difference-in-differences propensity score matching based on a rich set of covariates, including measures of individual ability, health and pre-deployment labour market attachment. We find that, overall, veterans’ post-deployment earnings are largely unaffected by their service. Even though Swedish veterans in the studied period tend to outperform their birth-cohort peers who did not serve, we show that this advantage in earnings disappears once we adjust for non-random selection into service. Paper [IV] studies the relationship between military deployment to Bosnia in the 1990s and adverse outcomes on the labour market. The analysis is based on longitudinal administrative data for a sample of 2275 young Swedish veterans who served as peacekeepers in Bosnia at some point during the years 1993–1999. I follow these veterans for up to 20 years after deployment. Using propensity score matching based on a rich set of covariates, I estimate the effects of deployment on three broad measures of labour market marginalisation: long-term unemployment, work disability, and social-welfare assistance. I find no indication of long-term labour market marginalisation of the veterans. Even though the veterans experienced an increase in the risk of unemployment in the years immediately following return from service, in the long run their attachment to the labour market is not affected negatively by their service.
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10. |
- Lanot, Gauthier, et al.
(author)
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Pension benefit reform and the substitution of older for younger workers
- 2014
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Conference paper (peer-reviewed)abstract
- Early pension benefits encourage workers to retire before normal pensionable age. The age structure ofemployment reflects the relative prices of retaining workers of different ages. We use a recent reform to pension benefits in Denmark to analyze the relationship between the wages and employment of workers ofdifferent ages at the firm level. We find that the reform changed retirement ages of unskilled workers – the group with lowest wages and largest replacement rate changes due to the reform. This provides instrumental variables by which to identify parameters of a CES production function. For this group of unskilled workers we are able to estimate the elasticity of substitution between old and young at the firm level to be unity – they are perfect substitutes.
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