Improve Labor Market Outcomes Research Articles

Who Demands Technical and Vocational Education in Pakistan? A PSLM Analysis of Socio-Economic Determinants

Purpose: The present study investigates the influence of demographic factors on the demand for Technical and Vocational Education and Training (TVET) in Pakistan. The government of Pakistan has implemented various skill enhancement programs to harness the demographic dividend. However, only a small portion of the workforce receives any form of TVET, contributing to a shortage of skilled workers in the country. Many industries, particularly in manufacturing and mining, face deficits in the skilled labour. Consequently, this study aims to examine the role of demographic factors in shaping the demand for TVET within the Pakistani context. Methods: For the TVET demand's estimation, this study employed the Pakistan Social and Living Standard Measurement (PSLM) dataset of 2018–19 by using binary logistic regression analysis (BLRA). The demographic variables include the household's income, household head's education, household size, male proportion of the target age group, household head's age, and region of the household. Findings: The findings indicate that households in the higher income category do not demand TVET. Moreover, if the head of the household is highly educated, then the household is less likely to participate in TEVT. So, the higher the socio-economic status, the lower the probability of demand for TVET from the better-off students. Further, this study also indicates that boys are more likely to participate in TVET-related degrees, while females are less likely to participate in TVET due to the non-availability of institutes and hostel facilities, poor transportation, the limited number of trades available for females, and security issues. Conclusion: The findings provide insightful evidence to support the idea that the higher the socio-economic status of households, the lower the probability of demand for a TVET degree or diploma. Similarly, children of parents with university education are less likely to pursue TVET-related degrees. The reason is likely attributed to the perception that TVET-associated degrees and diplomas are considered inferior due to their lower standing and prestige as compared to general or professional degrees. This study suggests that the attractiveness of TVET can be enhanced by improving the quality of TVET, improving labour market outcomes, and creating a pathway to general education. Overall, this study not only contributes to empirical analyses of socio-economic determinants in TVET demand but also suggests that its findings can be applied not only to South Asian countries but also to other comparable nations with similar cultural ties and affinities.

A Time Series Analysis of the Total Program Expenditures to Support the Supplemental Nutrition Assistance Program in the United States

The Supplemental Nutrition Assistance Program (SNAP, also known as food stamps) offers tens of millions of American beneficiaries a crucial lifeline. This welfare benefit has been associated with better nutritional outcomes and has been linked to an efficient tool to fight hunger, improve labour market outcomes for the beneficiaries, achieve higher birth weight for children born to the beneficiary mothers, improve height and health outcomes for the beneficiaries. SNAP has been found to be an essential tool to ensure the availability of vital resources during times of need, etc. Despite the program’s numerous advantages, serious doubts exist about its viability and stability of the program especially, given the steep rise in program costs over the years. Over the past 50 years, SNAP has experienced tremendous growth both in terms of the number of beneficiaries and amount of spending. From over $1.82 billion in 1969 to over $113 billion in 2022, the total cost of the SNAP initiative has increased over 62 times in 53 years. This research uses data from the US Department of Agriculture to investigate the time series properties in the rise in the total expenditure devoted to the SNAP between 1969 and 2022. With and without trends, Augmented Dickey-Fuller tests are run with carefully chosen lag lengths. The existence of a unit root cannot be rejected in all specifications pointing to the possibility that the program might have grown in an unstable manner over time. An overwhelming amount of evidence points to an unstable and unstable growth in the overall amount spent on SNAP recipients. This unchecked growth may present substantial difficulties for policymakers especially since the program competes with other welfare programs in an environment of rapidly rising national debt and persistent budget deficits. The report does not attempt to estimate program fraud or abuse which may partially contribute to higher expenditures.

Degrees of difference: Do college credentials earned behind bars improve labor market outcomes?

Degrees of difference: Do college credentials earned behind bars improve labor market outcomes?

Impact evaluation of a new counselling and support programme for unemployed with multiple placement obstacles

AbstractWe analysed a new counselling and support programme for people with low employment prospects in Austria. The Austrian Public Employment Service introduced regional pilots to investigate whether a new counselling strategy could improve labour market outcomes for this group. Eligible unemployed individuals could opt for third‐party counselling and support, access a wide range of low‐threshold services, and focus on personal stability rather than job placement. The goal was to achieve similar or even better labour market outcomes at lower cost. By comparing pilot and control regions, we found that introducing the offer resulted in higher costs without improving labour market outcomes.

Randomized Controlled Trial of Counseling Approach for Long-Term Welfare Recipients in Switzerland

Purpose This study examines the impact of “Change in Direction,” a counseling approach for long-term social assistance recipients in Switzerland. Method The results of the study are based on a randomized controlled trial ( n intervention group = 31/32, n comparison group = 50/48). Outcome measures were obtained from a two-wave survey and administrative data. Results The intervention increased clients’ mastery (= experience of competence, β = .46, p = .038) and vitality (= one aspect of well-being, β = .61, p = .008), reducing the gap with the general Swiss working age population by 35% and 54%, respectively. However, the intervention did not increase clients’ general life satisfaction or earnings, nor did it reduce health expenditures or cash transfer receipt. Discussion Findings show that goal-oriented counseling can improve feelings of competence and well-being among long-term welfare recipients but that it cannot improve labor market outcomes and financial self-sufficiency.

The long-run impacts of adolescent drinking: Evidence from Zero Tolerance Laws

This paper provides the first long-run assessment of adolescent alcohol control policies on later-life health and labor market outcomes. Our analysis exploits cross-state variation in the rollout of “Zero Tolerance” (ZT) Laws, which set strict alcohol limits for drivers under age 21 and led to sharp reductions in youth binge drinking. We adopt a difference-in-differences approach that combines information on state and year of birth to identify individuals exposed to the laws during adolescence and tracks the evolving impacts into middle age. We find that ZT Laws led to significant improvements in later-life health. Individuals exposed to the laws during adolescence were substantially less likely to suffer from cognitive and physical limitations in their 40s. The health effects are mirrored by improved labor market outcomes. These patterns cannot be attributed to changes in educational attainment or marriage. Instead, we find that affected cohorts were significantly less likely to drink heavily by middle age, suggesting an important role for adolescent initiation and habit-formation in affecting long-term substance use.

Degrees of difference: Do college credentials earned behind bars improve labor market outcomes?

AbstractIt is widely held that providing postsecondary education programs to incarcerated individuals will improve postrelease labor market outcomes. Little research evidence exists, however, to support this view. To test the effect of postsecondary carceral education credentials on employer perceptions of hireability, the current study uses a factorial design to survey a sample of employers nationwide (N = 2,538). Employers were presented with résumés of fictional applicants applying to a job as a customer service representative at a large call center. The résumés randomized education credentials earned while incarcerated. Results indicate that employers were significantly more willing to interview applicants with postsecondary education credentials relative to applicants with only a General Educational Development (GED) diploma. Although Black applicants who had earned a sub‐baccalaureate certificate saw improvements in hireability relative to GED holders, Black applicants who had earned a bachelor's degree did not. In contrast, White applicants benefited both from sub‐baccalaureate certificates and bachelor's degrees. Results from a mediation analysis suggest that these credentials signal important information to employers about applicant attributes and that improved perceptions of applicant ability and likelihood to reoffend drive the overall effect. Implications for future research and policy are explored.

Does access to assistive technologies enhance labour force participation amongst the disabled population? Evidence from India

PurposePersons with disabilities (PwD) are generally less likely to be employed than the general population. The paper aims to investigate whether access to assistive technologies (AT) impacts labour force participation in the disabled population.Design/methodology/approachThe study utilises the nationally representative survey on disability in India conducted in 2018 through multi-stage sampling by the Ministry of Statistics and Programme Implementation (MOSPI), Government of India. The instrumental variable (IV) approach has been employed to infer causality between AT and labour market participation.FindingsThe study found that the labour force participation rate (LFPR) in India amongst the disabled population was 29% in the age group of 15–65 years in 2017–2018, as compared to 52% in the general population. Around two-thirds of the PwD respondents who were advised to acquire aid appliances acquired them, implying limited access to AT. The probability of LFPR in disabled population increases by 26.6% with access to AT particularly in urban areas.Practical implicationsPersistent issues such as lack of adequate amenities, poor literacy and a lack of vocational skills need to be addressed to improve labour market outcomes for the disabled population in rural areas.Originality/valueDespite its role in promoting distributive justice and inclusive development, research on equity gaps in access to AT and its impact on labour market outcomes is scant. This is the first paper that provides empirical evidence on the impact of access to AT on LFPR in the context of low- and middle-income countries.

Do subways improve labor market outcomes for low-skilled workers?

Do subways improve labor market outcomes for low-skilled workers?

Job Opportunities and Labour Market Participation: A Case Study of Jammu City, India

The study explores the scope of job opportunities and labour market participation of youth in Jammu City, India. In recent years, India has observed significant changes in its economic conditions and the study provides an understanding of different aspects of job opportunities and labour market participation at the regional level and helps in framing informed policy decisions. The study uses a mixed-method approach, combining quantitative data analysis to find the relationship between the variables and qualitative interviews with local respondents. Quantitative analysis examines employment trends in various occupational sectors and the impact of education and gender on labour market participation. Qualitative interviews provide insights into the challenges and opportunities faced by respondents for labour market participation in Jammu City. The paper discusses educational attainment, the relationship between labour market participation and insufficient job opportunities, transition patterns, educational and working status. The study reveals that Jammu City's labour market is diverse, in both general and vocational educational respondents and factors such as education, job opportunities, gender and geographic location influence labour market participation. Moreover, the study reveals large participation of respondents in informal jobs and self-employment due to the lack of government jobs and the worse political situation of the state. The study draws implications for policymakers to promote inclusive economic growth and improve labour market outcomes in this region. Furthermore, research and policy measures also address the complexities of job opportunities and labour market participation in Jammu City which ultimately enhances the overall socio-economic well-being of the study area.

Changing the mindsets? Education and the intergenerational spread of tolerance for physical violence against women in Zimbabwe

We investigate the relationship between childhood exposure to interparental violence and adult tolerance for violent beliefs against women. For individuals who have witnessed parental violence in childhood, our analysis suggests a 14.3–15.2 percentage point (pp) increase in tolerance, highlighting the transmission of violent beliefs across generations. Leveraging Zimbabwe’s 1980 education reform as a natural experiment through a regression discontinuity design, we explore the potential of increased education to disrupt this intergenerational transmission. The reform led to an approximately two-year increase in female education, with a more pronounced impact in rural areas. This educational boost is associated with an estimated 4.1–7.9 pp reduction in tolerance for violence, especially among those who witnessed parental violence in childhood. We identify four primary mechanisms contributing to this reduction in tolerance: enhanced access to information, increased help-seeking behaviours, improved labour market outcomes, and higher educational levels among partners. Our findings underscore the effectiveness of educational policies in reducing tolerance for violence against women within low-income contexts such as Zimbabwe, thereby disrupting its intergenerational transmission. Moreover, these results emphasise the potential of education-based interventions in addressing the broader issue of violence against women in low-income countries.

Does geographical exposure to language learning centres affect language skills and labour market outcomes in a bilingual city?

In this paper, we investigate the effects of geographical exposure to local language training centres in a bilingual urban labour market, the Metropolitan Area of Barcelona, exploiting the implementation of a language policy that provided publicly subsidized language courses for adults. Our variable of interest consists in a measure of spatial availability of language schools that captures potential exposure and its expansion over time. First, we focus on the formation of local language skills, adopting a reduced-form approach. Our results indicate that exposure to language learning opportunities has a positive but quantitatively modest effect on local language skills, since individuals residing in neighbourhoods with a higher supply of language centres are more likely to be able to speak and write in Catalan. The effect is very robust to falsification exercises and several sensitivity checks and is driven by younger individuals, and especially by those who were born in Catalonia. Second, we analyse whether accessibility to language centres also affects employment, working hours, employment sector, and occupation. Our results indicate that, although skills in Catalan are positively and significantly associated with improved labour market outcomes, spatial accessibility to language centres is not directly related to any of them. This lack of effect is possibly due to the fact that the impact of geographical exposure on language skills is too small in size to improve performance in the local labour market.

The impact of education on improving labour market outcomes in developing countries – evidence from Kosova

ABSTRACT In recent decades, there has been a growing interest in studying the relationship between education and its impacts on the labour market. While the relationship between education and wages has been extensively researched, the empirical evidence regarding employment opportunities remains poor. In this article, we examine the impact of education in improving labour market outcomes of working-age individuals in Kosova, emphasizing its role in the probability of employment. Our analysis is based on an extensive dataset compiled from Kosova Labour Force Survey for 2015, 2016 and 2017, which includes more than 75 thousand observations. Using the probit model, we analyse the impact of education on the probability of employment and labour force participation in Kosova. Our findings show that, relative to those with no formal education, the likelihood of being employed increases by 26.9% for individuals with primary education, while for those with secondary and tertiary education, the likelihood increases by 55 and 76.6%, respectively. We see these significant changes in employment opportunities due to education as significant returns to investment in education that have driven the increasing trends in educational enrolment in recent years.

The association between obesity, health service use, and work productivity in Australia: a cross-sectional quantile regression analysis

The burden of disease attributable to obesity is rapidly increasing and becoming a public health challenge globally. Using a nationally representative sample in Australia, this study aims to examine the association of obesity with healthcare service use and work productivity across outcome distributions. We used Household, Income and Labour Dynamics Australia (HILDA) Wave 17 (2017–2018), including 11,211 participants aged between 20 and 65 years. Two-part models using multivariable logistic regressions and quantile regressions were employed to understand variations in the association between obesity levels and the outcomes. The prevalence of overweight and obesity was 35.0% and 27.6%, respectively. After adjusting for socio-demographic factors, low socioeconomic status was associated with a higher probability of overweight and obesity (Obese III: OR = 3.79; 95% CI 2.53–5.68) while high education group was associated with a lower likelihood of being high level of obesity (Obese III OR = 0.42, 95% CI 0.29–0.59). Higher levels of obesity were associated with higher probability of health service use (GP visit Obese, III: OR = 1.42 95% CI 1.04–1.93,) and work productivity loss (number of paid sick leave days, Obese III: OR = 2.40 95% CI 1.94–2.96), compared with normal weight. The impacts of obesity on health service use and work productivity were larger for those with higher percentiles compared to lower percentiles. Overweight and obesity are associated with greater healthcare utilisation, and loss in work productivity in Australia. Australia’s healthcare system should prioritise interventions to prevent overweight and obesity to reduce the cost on individuals and improve labour market outcomes.

Are ethnic employment penalties mitigated in deprived neighbourhoods and in ethnically dense neighbourhoods?

AbstractExisting research has extensively documented that those living in the most deprived neighbourhoods and individuals from some ethnic minority groups have low rates of labour market participation in the United Kingdom. This paper brings together these two established areas of research to ask whether ethnic minority groups have better employment participation when living in more deprived neighbourhoods. We hypothesise that this could be due to different socialisation processes enabling ethnic minorities to secure employment more easily in deprived neighbourhoods as well as in neighbourhoods where there is greater ethnic density. Data from the United Kingdom Household Longitudinal Study in England are linked to the Index of Multiple Deprivation 2014 and the 2011 Census to model unemployment and economic inactivity between 2009 and 2019 separately for women and men. The results show that some ethnic minority groups face disadvantage in the labour market, especially Pakistani and Bangladeshi women. There is little support to suggest that these penalties are lessened in more deprived neighbourhoods or in more ethnically dense neighbourhoods. There is some suggestion that groups who do not face ethnic penalties compared with the White British group have lower rates of unemployment and economic inactivity in more deprived neighbourhoods. We suggest policies aimed at improving labour market outcomes for disadvantaged ethnic minorities should target them wherever they live.

The Effects of High School Career and Technical Education on Employment, Wages, and Educational Attainment

I investigate the effects of high school career and technical education (CTE) on later-life outcomes by constructing a dynamic structural model that instruments for curricula choice using variation in CTE opportunities and local labor market controls. Estimates derived from national longitudinal data suggest that trade CTE, relative to general education and business CTE, improves wages and employment opportunities while increasing high school graduation but decreasing university graduation propensities. Policy simulations suggest that incorporating vocational certification into CTE would improve labor market outcomes. Simulations also suggest that strict high school tracking would increase the dropout rate but improve outcomes for graduates at the expense of their high school utility.

Labor Market Outcomes of Vocational High Schools (SMK) and General High Schools (SMA) during the COVID-19 Pandemic

The fourth Sustainable Development Goals (SDGs) adopts a lifelong learning approach to education and introduces vocational and tertiary education into the global agenda. While Vocational Education and Training (VET) was almost absent in previous international development frameworks, the agenda 2030 and its SDGs highlight greater importance to it. Consequently, many governments in developing countries promote vocational secondary education to improve labor market outcomes. This study aimed to determine the development of return on investment for Vocational High Schools (SMK) and Senior High Schools (SMA) in 2020. The data used the August 2020 National Labor Force Survey (SAKERNAS) data with Two-Step Heckman and the Mincer Revenue Function. As a result, in 2020, the return on investment in vocational education was 16.82% higher than the rate of return on investment in high school education. However, observed by the age group, the results show that SMK only provides an initial wage advantage for men, which then declines with age. Although male SMK graduates experienced poorer results, female SMK graduates did not experience the same decline.

10.Q. Workshop: Imbalance in use and impact of public psychotherapy – A Finnish working-age population register study

Abstract Mental disorders are globally among the leading causes of disability in the working-age population. Psychotherapies have proven to be effective in the improvement of mental health. The current evidence on the benefits of psychotherapies is mainly based on randomized control trials and patient-reported outcomes, whereas the potential impact of long-term psychological therapy on work disability and income is not so well known. This emphasizes the need for longitudinal studies on the effects of psychological therapies in a ‘real-world study setting’, and on the distribution of the availability and the use of psychological therapies in different populations. In Finland, rehabilitative psychotherapy is the major single form of publicly provided psychological therapy. It is targeted at those aged 16 to 67 who are at risk of disability or not being able to study because of mental health problems. It is granted an annual period (maximum three years), a maximum of 80 sessions per year and 200 sessions per 3 years. From 2011 on this psychotherapy has been statutorily granted to all at risk of work disability due mental health disorders. The number of annual users has increased from 15 757 (2010) to 56 682 (2020). This workshop presents the results from a research project investigating the use and real-world effects of long-term psychotherapy in the Finnish working-age population in the 2010s. It shows 1) whether the use of psychotherapy is associated with subsequent work disability and labour market outcomes (income, employment), 2) how the use of long-term psychotherapy differed between socio-demographic groups in the 2010s in Finland, and 3) the extent to which state-subsidized psychotherapy is linked to the distinctive profiles of mental health problems in the population. The five presentations offer new results from the Rise of Mental Vulnerability in Work Life Study drawn from the national registers. The presentations are mostly based on three randomly selected population cohorts which each included 33% of the 18-64-year-old permanent Finnish residents at the baseline. These data were sampled (sampling years: 2010, 2013, 2016) by and derived from the Population Register maintained by Statistics Finland and included information on various socio-demographic characteristics (e.g., gender, occupation class, region, income). These were linked to the national health registers. Information on reimbursed psychotherapy and mental health indicators (sickness absence, psychotropic drugs, disability benefits) were obtained from the Social Insurance Institution of Finland and complemented by the disability pension data from the Finnish Centre for Pensions. The data provide a unique opportunity to observe how the use of state-subsidized long-term psychotherapy was distributed across population groups in the 2010s, and to the extent to which disability trajectories and economic outcomes have developed in different groups during and after psychotherapeutic treatment. Key messages • Psychotherapy is likely to decrease the risk of work disability and improve labour market outcomes. • The provision of long-term psychotherapy is related to social inequality in the working population.

Health, crime, and the labor market: Theory and policy analysis

Better health improves labor market outcomes, and better labor market outcomes discourage individuals from engaging in criminal behavior. Therefore, health insurance policies would affect labor market outcomes and criminal behavior. To explain the mechanism and the impact, we build an equilibrium search model of health, crime, and the labor market. We then use the model to conduct policy experiments and quantify their impacts on the economy. The calibrated model shows that the Medicare-for-all and the Employer Mandate under the Affordable Care Act would increase the aggregate output by more than 10%. However, while Medicare-for-all reduces the crime rate and inequality, the Employer Mandate increases both. Furthermore, policy effects vary by individual’s skill and health status.

Effect of the age of visual impairment onset on employment outcomes in South Korea: analysis of the national survey on persons with disabilities data

BackgroundOpportunities for paid employment provide meaningful ways for those with disabilities to participate in society and achieve financial independence. Although the onset age of disabilities can alter individuals’ attitudes toward accepting their disabilities and their desire for work, the lack of data limits relevant empirical research. The purpose of this study is to examine the effect of the onset age on employment, job security (permanent vs. temporary), and wage level among visually impaired adults in South Korea.MethodsWe used three years of the National Survey on Persons with Disabilities data, 2011, 2014, and 2017, and included 583 participants in this study. We used a logistic regression model for the employment status and a multinomial logistic regression model for job security. We analyzed log monthly wage by a multivariate linear regression model, which subdivided the age groups, with 20–49 years old denoting prime-aged (n = 245) and 50–64 years old denoting late-middle-aged (n = 338). For each age group, we conducted a sub-analysis by sex.ResultsFor prime-aged adults, the employment probability decreased as the age of visual impartment onset increased, and women in particular experienced a lower employment rate for both permanent and temporary jobs when their disability onset age was above 25. However, among permanent employees, monthly wages were higher if the onset age was 25 + compared to when the onset age was 0–5 years old. In late middle-aged adults, adult onset disabilities were associated with higher odds of employment and higher wages for temporary jobs, implying these individuals worked unskilled or manual jobs.ConclusionsIn prime-aged adults, higher monthly wages among permanent employees showed that they were more likely to continue their original work, whereas in late-middle-aged adults, adult-onset disabilities were associated with a higher employment rate and higher wages for temporary jobs, suggesting the need for further investigation into job quality. These findings indicate a need for differentiated policy approaches considering the onset age of visual impairment to improve labor market outcomes throughout individuals’ lifespans.