Entropy Balancing Autor's (2003) Data on the US Labor Markets
Roto, Ville (2015)
2015
Taloustiede - Economics
Johtamiskorkeakoulu - School of Management
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Hyväksymispäivämäärä
2015-04-24
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:uta-201504301382
https://urn.fi/URN:NBN:fi:uta-201504301382
Tiivistelmä
This thesis studies the impact of employment protection legislature on employment outsourcing via temporary help services. Given the recent trend of companies shifting away from traditional employment contracts to short term contracts one should study whether this is caused by more stringent introductions to employment protection legislation. As the usage of temporary hiring services over the course of the study has continued to increase David Autor attempts to disentangle implied contract's shock from other causes.
We evaluate David Autor's empirical study on exceptions to the employment at-will doctrine and how given exceptions affect the US labor markets from the standpoint of temporary help services. Autor makes use of a state-level time series aggregate data that follows the employment level and employment characteristics from 1979 to 1995. Autor finds that the implied contract exception to the employment at-will doctrine shows an incremental increase in the usage of temporary hiring services in states that adopt the implied contract exception to their legislature.
Using a smaller sample of data and entropy balancing method we make iterative changes to Autor's regressions to study whether his results can be validated with adjusted data. Entropy balancing is a data pre-processing method that balances control and treatment groups' independent variables prior to regressions. Given that states that adopt and the states that do not adopt the implied contract exception are characteristically very different, entropy balancing could validate Autor's results in a setting where control and treatment states are more comparable. Using entropy balancing and a smaller sample size do not uniformly confirm Autor's hypothesis that implied contract exception cause anz` increase in the usage of temporary hiring services.
We evaluate David Autor's empirical study on exceptions to the employment at-will doctrine and how given exceptions affect the US labor markets from the standpoint of temporary help services. Autor makes use of a state-level time series aggregate data that follows the employment level and employment characteristics from 1979 to 1995. Autor finds that the implied contract exception to the employment at-will doctrine shows an incremental increase in the usage of temporary hiring services in states that adopt the implied contract exception to their legislature.
Using a smaller sample of data and entropy balancing method we make iterative changes to Autor's regressions to study whether his results can be validated with adjusted data. Entropy balancing is a data pre-processing method that balances control and treatment groups' independent variables prior to regressions. Given that states that adopt and the states that do not adopt the implied contract exception are characteristically very different, entropy balancing could validate Autor's results in a setting where control and treatment states are more comparable. Using entropy balancing and a smaller sample size do not uniformly confirm Autor's hypothesis that implied contract exception cause anz` increase in the usage of temporary hiring services.