Improve Labor Market Research Articles

¿Alcanza la educación para salir de la pobreza? Análisis del proceso de estratificación ocupacional de jóvenes rurales en México1

The article examines the occupational stratification process of youths from rural households who have been beneficiaries of the Oportunidades program for up to ten years. With Oportunidades the Mexican government has tried to reduce intergenerational transmission of poverty through the promotion of human capital as a means of improving labor market insertion of the descendants of families living in extreme poverty. Based on statistical data and path analysis models, the relationship among assigned and meritocratic factors in the process of occupational achievement is analyzed. The study concludes that education is the most influential factor in the work market status of these youths, but that factors related with their social background on the whole have a similarly significant effect. Furthermore, differences by sex and migratory condition are found to highlight the weight of contextual characteristics and those of labor markets. The study’s findings support that education is a key element for the promotion of intergenerational mobility of this sector, a stress should be thus given to educational policies that guarantee access to quality education at all levels for population living in poverty. Nevertheless, this alone would be insufficient. Policy activities are also required in other fields in order to reduce the link between social origin and social destiny of Mexicans.

The Nordic Labor Market and Migration

The large influx of migrants to Nordic countries in recent years is challenging the adoptability of Nordic labor market institutions while also adding to potential growth. This paper examines the trends, economic drivers, and labor market implications of migration to Nordic countries with a particular focus on economic migration as distinct from the recent large flows of asylum seekers. Our analysis finds that migration inflows to the Nordics are influenced by both cyclical and structural factors. Although migration helpfully dampens overheating pressures during periods of strong demand, and over the longer term will cushion the decline in labor supply from population aging, in the near-term unemployment can rise, especially among the young and lower-skilled. The analysis highlights the need to adapt Nordic labor market institutions in a manner that better facilitates the integration of migrants into employment. In particular, greater wage flexibility at the firm level and continued strong active labor market measures will help improve labor market outcomes among immigrants.

The Nordic Labor Market and Migration

The large influx of migrants to Nordic countries in recent years is challenging the adoptability of Nordic labor market institutions while also adding to potential growth. This paper examines the trends, economic drivers, and labor market implications of migration to Nordic countries with a particular focus on economic migration as distinct from the recent large flows of asylum seekers. Our analysis finds that migration inflows to the Nordics are influenced by both cyclical and structural factors. Although migration helpfully dampens overheating pressures during periods of strong demand, and over the longer term will cushion the decline in labor supply from population aging, in the near-term unemployment can rise, especially among the young and lower-skilled. The analysis highlights the need to adapt Nordic labor market institutions in a manner that better facilitates the integration of migrants into employment. In particular, greater wage flexibility at the firm level and continued strong active labor market measures will help improve labor market outcomes among immigrants.

Learning to adapt: does returning to education improve labour market outcomes?

The transition into a post-industrial economy changed the nature of the Australian labour market extinguishing jobs in traditional industries and creating jobs in new industries. Workers displaced from the manufacturing sector and women seeking to re-enter the labour market after taking time out for family reasons need to retrain in order to secure full-time employment in new industries. Consequently, returning to education is a relatively common occurrence in Australia as adults adapt to the changing demands of the labour market. Using the first 12 waves of the Household Income and Labour Dynamics in Australia data, this paper examines the characteristics of those who return to education and gain new educational qualifications. The effect of upgrading educational qualifications on employment outcomes is also examined. The results show that those with higher levels of education were more likely than those with low levels of education to complete new qualifications after the age of 25 and that employment outcomes vary according to level of qualification completed.

Effects of public employment services on labor transitions: an analysis for the Spanish case

Purpose – The purpose of this paper is to evaluate the influence of public employment services (PES) on transitions from unemployment. Design/methodology/approach – The likelihood of exit from unemployment is explained by a multinomial logit model which takes into account the target state of the transition (unemployment, employment or inactivity). In order to analyze the unobserved heterogeneity, the model has been estimated using a Generalized Linear Latent and Mixed Models. Findings – The analysis suggests that the contribution of PES to improving labor market outcomes is low in the case of transitions to employment. Nevertheless, PES play an important role in workforce dropout prevention. Practical implications – The results suggest that redesign and modernization are needed to improve PES performance. More intensive job counselling should be provided so that PES get beyond workforce dropout prevention and start having clear positive effects on placement. Target groups should be defined more clearly so as to ensure sustainable transitions for individuals at risk of exclusion. PES should focus on the most disadvantaged jobseekers and those who need more help to get jobs. Originality/value – First, the results highlight the role PES play in reducing inactivity rates. Second, this is the first study in Spain that uses Labor Force Survey (LFS) data to evaluate PES in a dynamic framework. The LFS is the only data source which allows us to relate people registered unemployed to people considered unemployed by international standards.

TRADE UNIONS AND ECONOMIC REFORM IN AUSTRALIA, 1983–2013

Many of the key reforms of the past three decades that helped to strengthen the Australian economy were implemented during the operation of the Accord that existed between Australian Labor Party governments and the union movement. In order to address structural economic problems, unions agreed to moderate wage outcomes and to facilitate the transition to workplace bargaining in return for social welfare gains for workers, which successive governments have maintained. These reforms helped to improve labor market efficiency and allowed firms to integrate successfully into international markets, without substantially compromising the interests of workers and their families, which thereby allowed economic dislocation and social unrest to be contained. In contrast to the assertions of certain Australian employer groups, research has consistently shown that union involvement in workplace bargaining has a benign impact on business productivity. However, declining membership presents a significant challenge to the capacity of Australian unions to influence economic outcomes at the national and workplace levels in the future.

The Effect of Fear of Crime and Crime Victimization on Subjective Well-Being in Africa

A relatively limited number of studies have examined the effect of fear of crime and crime victimization on subjective well-being. This paper examines how fear of crime and crime victimization affect the well-being of people in Africa using data from the Round 4 of the Afrobarometer Surveys conducted in 20 countries. Consistent with the findings of previous studies, results from ordered probit and OLS regressions indicate that, each of fear of crime, theft victimization, and physical assault negatively influences well-being. In addition, the paper compares men and women on the basis of these effects, and finds that while fear of crime and theft victimization are significantly correlated with the well-being of women, neither has an effect on the well-being of men. However, physical assault significantly diminishes well-being for both men and women. The paper recommends that African governments pursue public policies that would improve labor market conditions, as lower unemployment could reduce crime, and increase well-being.

Perspectives on Higher Education and the Labor Market Outcomes in Nigeria

This study examines the role of higher education in improving labor market outcomes with a particular focus on public policy considerations in Nigeria. One important institution the labor market relies on for the production of high level manpower is the university. This is so because of the link between higher education knowledge and business practice. The study found that government policies need to be seen within a broader macroeconomic context if higher education is to contribute to national economic growth. The study also found that policies aimed at improving the skills of the workforce will have limited impact on the national economy unless there is a place in the labor market that demands those skills. This study recommends among others, agriculture, infrastructure construction for both rural and urban geography, manufacturing, international partnership for employment creation for higher education graduates in the labor market. DOI: 10.5901/jesr.2014.v4n3p125

Regional Effect Heterogeneity of Start-up Subsidies for the Unemployed

Caliendo M. and Künn S. Regional effect heterogeneity of start-up subsidies for the unemployed, Regional Studies. Evaluation studies have shown the high effectiveness of start-up subsidies for unemployed individuals to improve labour market outcomes of participants. What has not been examined yet are the potentially heterogeneous effects of start-up programmes across regional labour markets. Labour demand-side restrictions in deprived areas generally increase entries into start-up programmes as job offers are limited. However, the survival of firms in these areas is also lower, such that the overall effect remains unclear. Based on German data, it is found that the founding process, development of businesses and programme effectiveness are influenced by prevailing economic conditions at start-up.

Unemployment Insurance Experience Rating and Labor Market Dynamics

Unemployment insurance experience rating imposes higher payroll tax rates on firms that have laid off more workers in the past. To analyze the effects of UI tax policy on labor market dynamics, this paper develops a search model of unemployment with heterogeneous firms and realistic UI financing. The model predicts that higher experience rating reduces both job creation and job destruction. Using firm-level data from the Quarterly Census of Employment and Wages, the model is tested by comparing job creation and job destruction across states and industries with different UI tax schedules. The empirical analysis shows a strong negative relationship between job flows and experience rating. Consistent with the empirical results, comparative steady state tax experiments show that a 5% increase in experience rating reduces job flows by an average of 1.4%. While the unemployment rate falls on average by .21 percentage points, the effect on tax revenues is ambiguous. The model has implications for UI financing reform currently being considered at the state and national level. Two alternative reforms that close half of the UI financing gap are considered: the reform that increases experience rating is shown to improve labor market outcomes. In a version of the model with aggregate shocks, higher experience rating dampens the response of layoffs and unemployment over the business cycle. Experience rating also induces nonlinear responses of unemployment to proportionally larger shocks as well as asymmetry in response to booms and busts.

Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden

This paper analyses if privatisation of vocational rehabilitation can improve labour market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Public Employment Service and the Social Insurance Agency in Sweden during 2008–2010, in which over 4000 participants were randomly offered private and public rehabilitation. We find no differences in employment rates following rehabilitation between individuals who received rehabilitation by private and public providers. Also the average cost of rehabilitation was essentially equal for the two types of providers. This suggests that there are no large efficiency gains from privatising vocational rehabilitation.

A Study on Internal Labor Movement and Policy Multiplier in Thailand

The main objective of this paper is trying to measure the effectiveness of selected supply side and demand side policies on Thai economy by using Computable General Equilibrium (CGE)model. We found that there is a special characteristic of the unskilled labor movement among agricultural sector and other sectors in Thailand and this characteristic can represented by Harris-Todaro expected wage equation. Therefore, we developed the CGE model incorporating Harris-Todaro expected wage equilibrium for the labor market. The simulation result shows that, for selected supply side policy, the reduction of switching cost, increasing labor productivity (which are selected supply side policy), increasing in government spending and export promotion (which are selected demand side policy) can contribute positive impacts to Thai economy. Interestingly, we found that if both the reduction of switching cost and the increasing labor productivity are implemented together, they will generate even more positive impacts to Thai economy than separately implemented. This finding suggests policy maker should implement both the reduction of switching cost and the increasing labor productivity together in order to gain more benefit to Thai economy. These two policies are supply side policy and related to labor market, thus improving labor market is a great choice for Thailand. Lastly, we found that all policies have the similar non-linear characteristic.

Making the Case for an Aboriginal Labour Market Intermediary: A Community Based Solution to Improve Labour Market Outcomes for Aboriginal People in Manitoba

Making the Case for an Aboriginal Labour Market Intermediary: A Community Based Solution to Improve Labour Market Outcomes for Aboriginal People in Manitoba

Designing labor market regulations in developing countries

Governments regulate employment to protect workers and to improve labor market efficiency. However, employment regulations can be controversial, often complicated by opposing ideological views. Thus, it is important for policymakers in developing countries to base decisions on empirical evidence of the impacts of these regulations. The majority of the evidence suggests that most countries have set their regulations in the appropriate range. But it can be costly when countries either overregulate or underregulate their labor market.

Empowering Women: The Effect of Schooling on Young Women's Knowledge and Use of Contraception

Large differences in fertility between women with high and low levels of education suggest that schooling may have a direct impact on knowledge and use of contraception. We investigate this issue using information on women in Mexico. In order to identify the causal effect of schooling, we exploit temporal and geographic variation in the number of lower secondary schools built following the extension of compulsory education in Mexico from 6th to 9th grade in 1993. We show that raising females' schooling beyond 6th grade increases their knowledge of contraception during their reproductive years and increases their propensity to use contraception at sexual debut. This indicates that the impact of schooling on women's wellbeing extends beyond improved labour market outcomes and includes greater autonomy over their fertility.

What’s the Value of Social Capital?A Within-Person Job Offer and Choice Test

Whether and how social capital derived through social ties creates value has animated substantial research in sociology, economics, and political science. Amongst the most active lines of research on the matter considers whether social ties improve labor market outcomes. Two primary analytical approaches have been employed to this end. One considers whether social ties help individuals find work. A second approach considers whether social ties lead to jobs with better attributes (e.g., pay), contingent on finding work. Sociologists are generally inclined to believe that social ties have a causal impact on labor market outcomes—that is, it is “who you know that counts” to some degree. However, the evidence informing this belief is circumstantial and often inconsistent. This is particularly true with respect to the second approach concerning whether the use of social ties leads to jobs with more favorable characteristics. In this research we propose and test a model that addresses prior criticisms of the latter approach by leveraging unique data on contemporaneous job search with detailed information about job search channels and offer characteristics. Contrary to conventional wisdom, we find that search through social networks typically results in job offers with lower total compensation. However, net of compensation, job offers derived through alumni contacts (weak ties) as well as thorough family and friends are more likely accepted.

Signs of Improving Labor Market Conditions

Data revisions suggest that job growth has been much stronger than initially reported the past two years.

PROTOCOL: Interventions to Improve Labour Market Outcomes of Youth: A Systematic Review of Active Labour Market Programmes

PROTOCOL: Interventions to Improve Labour Market Outcomes of Youth: A Systematic Review of Active Labour Market Programmes

The Role of Workfare in Striking a Balance between Incentives and Insurance in the Labour Market

Unemployment insurance tends to distort incentives in the labour market, affecting job search and wage formation adversely. We show in a search‐matching model that this moral hazard problem can be reduced by attaching a workfare requirement to the eligibility conditions for claiming unemployment benefits. Even when workfare has no effects on human capital or productivity, it is possible to improve labour market performance to create more jobs and lower unemployment by the introduction of workfare, and also to improve welfare. Hence the incentive structure in the labour market can be improved by workfare policies rather than benefit reductions.

Evaluating labor market reforms: A normative analysis

This paper shows that a reform aimed at improving labor market flexibility is not necessarily welfare-enhancing. We adopt a New-Keynesian model enriched with search and matching frictions. We investigate the effects of institutional labor market reforms, described by a permanent change in firing costs and unemployment benefits. Improving labor market flexibility by cutting unemployment benefits is welfare-enhancing for households. On the contrary, cutting firing costs reduces welfare. We argue that real wage dynamics play a crucial role in the results. Furthermore, welfare effects tend to zero when the reform is pre-announced.