Labor Market Constraints Research Articles

INDEPENDENT DIRECTORS AND FIRM VALUE: NEW EVIDENCE FROM THE 2023 REGULATORY REFORM IN CHINA

This paper explores the “Measures for the Management of Independent Directors of Listed Companies” announced on August 4, 2023, for Chinese listed firms. We find that firms failing to meet the criteria in the Measures suffer losses in the stock market. The 2023 Measures exogenously increase the demand for qualified independent directors and incur high search costs for firms facing more labor market constraints.

Exploring the agency of skilled refugees in the British labour market

AbstractDrawing on the analytical distinction between agency and social structure, I provide insights into four strategies used by skilled refugees to navigate labour market constraints: pre‐empting, to avoid present labour market constraints; circumventing present constraints, to realise future benefits; persisting in the search for skilled jobs via mobilising longstanding patterns of thought and action; and exercising voice to drive future system improvements that benefit similar others. It is striking how these strategies harmonised self‐interest and others' interests. I highlight the interplay between social structure and agency in labour market strategies to depict skilled refugees as reflexive agents of change. I highlight gender‐based nuances in skilled refugees' labour market moves and conclude by outlining the implications of my findings for HRM practice.

Families on the space–time continuum: Conceptualizing and measuring temporal and spatial dimensions

AbstractObjectiveIn this article, I propose a new approach to study the opportunities and challenges for low‐income families through a focus on two key dimensions of family life: time and space. I show how the interaction of these two dimensions produces a range of scenarios for different types of social support to emerge.BackgroundThe space–time continuum (STC) is a theoretical framework in physics that removes the distinction between time and space and, instead, treats them as part of a seamless continuum. Similar to its adaptation in psychology, I use it to develop a model of family dynamics to better understand the correlates of kinship support.MethodDrawing on data drawn from a longitudinal project in Nairobi, Kenya, the spatial dimension is operationalized as the proportion of kin who live in close proximity and the temporal pertains to the duration of time in which family members maintain particular arrangements. Multinomial logit regression models are used to analyze the relationship between STC exposure and the odds of having each type of support composition.ResultsThe receipt of specific types of support from kin does vary across the STC quadrants though not entirely consistent with expectations. Moreover, the role of non‐kin was found to be surprisingly low across all waves of data collection, underscoring the continued importance of kin‐based relationships.ConclusionThe space–time continuum approach offers a way to connect macro level factors such as labor market constraints to micro level adaptation, agency, change and continuity in family structure and function. In doing so, I also make a case for the critical role that research in the African context can play in the development of theory and methodological innovation in family sociology.

What makes entrepreneurship counter-cyclical? Evidence from a shutdown of start-up subsidies in Denmark

ABSTRACT This paper examines how the presence of startup subsidies to the unemployed influences the relationship between business cycle and entrepreneurial activity, and the implications on individuals’ long-term earnings. We propose that on one hand, this measure fosters entrepreneurship, especially during recessions, by attracting individuals facing labour market constraints. On the other hand, the policy may unintentionally penalize counter-cyclical founders back to paid jobs if employers perceive them as less committed or of lower quality. Exploiting a change in Danish policy that abolishes a startup subsidy scheme for the unemployed, we compare the entrepreneurial population in two extended periods. Our findings indicate that entrepreneurship tends to be counter-cyclical during the subsidy period (1988–1996), while pro-cyclical in the post-reform period (1998–2006). Moreover, the results highlight an unintended consequence of the policy, i.e. a persistent and large (post-exit) wage gap between counter-cyclical and pro-cyclical founders, particularly pronounced for individuals with lower education, unobserved ability, and part-time job experience prior to transition.

Investigating PhDs’ early career occupational outcomes in Italy: individual motivations, role of supervisor and gender differences

The paper examines how individual motivations, the role of the supervisor and gender influence the early career path of doctorate holders. We investigate PhD graduates’ occupational outcomes beyond academia in the framework of current literature on the oversupply of PhD holders and labor market constraints. Our analysis relies on two unique datasets. The first, at the national level, includes microdata from the Italian National Institute of Statistics regarding about 41,000 graduates who account for over 70% of the population of 6 cohorts surveyed for the period 2004–2014. The other dataset is from a single university, and resulted from an original survey of 760 PhD holders who earned their doctorates from the University of Turin in 2007–2017. We find that PhD holders’ motivation towards science is associated with their subsequent employment in academia or in other research and non-research jobs. Sponsoring support in early career and the supervisor’s propensity for basic research also play a role in the future academic career path. Gender differences in type of occupation, however, continue to persist even taking motivations and the supervisor’s role into account.

The Life Course of Unemployment: The Timing and Relative Degree of Risk

We use the National Longitudinal Survey of Youth 1979 to identify group-based trajectories of unemployment risk as workers age in the United States. Our novel methodological approach reveals 73% of full-time workers spend much of their 20, 30, and 40 s with a relatively low risk of unemployment. The remaining sizable minority varies in the timing and relative degree of their unemployment risk. Eighteen percent experience early career unemployment risk into their early thirties, well after the transition to adulthood. Chronic unemployment characterizes the labor market experiences of the remaining 9%. When expanding the sample to all workers, we find two key differences: the overall prevalence of unemployment is greater each year for all groups and the distribution of respondents across groups differs, with fewer workers experiencing Lower unemployment and more workers experiencing Early Career or Higher unemployment. Unemployment risk is shaped by experiences of long-term unemployment in young adulthood and early labor market constraints. Moreover, while men and women appear equally at risk of Early career unemployment, men are particularly at risk of Higher unemployment. Black workers were significantly more likely to be at risk of Higher unemployment, but only slightly more likely to be at risk of Early career unemployment. Since Early career unemployment risk gives way to steadier work for most, this suggests that some men and some Black workers face disproportionately high levels of employment precarity. Our findings point to the importance of a life course approach for understanding the relationship between unemployment and labor market precarity.

Economic Determinants of Applicant Screening Practices: Analysis of the Korean Human Capital Corporate Panel

This study reviews employers’ existing recruiting practices and the environment in which these aredeployed, and estimates their effect on the employers’ and workers’ outcomes. The Korean Human Capital Corporate Panel spanning years 2005–2013 is used totake stock ofemployers’ screening of applicants’ personal characteristics, and regressions with fixed effects link the screening practicesto firms’ skill needs, skill supply and labor-market constraints. Institutional and market constraints on employers’ conduct are found to affect screening practices morethan firms’skill needs. The existence of HR departments, worker unionization, and applicant pool size have systematiceffects.Employers’ skill needsand screening practices, in turn, affectthe female share amongnewhires. HR departments, personnel committees on boards,andforeign management put a constraint onfirms’hiring discrimination, effectively supportingwomen’s cause.

Worker Mobility in Practice: Is Quitting a Right, or a Luxury?

Worker mobility—the ability to find and take another job—is at the core of worker power, and, conversely, worker immobility is at the core of employer power. This paper presents evidence of barriers to worker mobility in terms of labor market constraints (can a worker find another job?) and financial constraints (can a worker afford to transition to another job?). The theoretical context of these findings is dynamic monopsony: the harder it is for a worker to leave, the more power an employer has over that worker’s wages.

Who are long distance commuters in Italy? Profiling LDC in Milan Urban Region

This research focuses on long-distance commuters (LDC) in Italy, defined as people who travel long distances for work-related reasons, mainly to avoid residential mobility. These mobility practices, which are still quantitatively insignificant compared to daily commuting flows, can be correlated to socio-economic and lifestyle transformations, resulting from the combined effects of changes in the labour market, family and personal attitudes and constraints, and the supply of transport and communication networks. This paper frames long-distance commuting on a national level to describe the relevance and the geography of this phenomenon in Italy, offering an in-depth analysis of long-distance work-related travel in the Milan Urban Region (North of Italy) to understand the profiles of LDCs, the factors influencing this mobility practice, and its evolution over time. To address these concerns, a series of quantitative analyses are combined with complementary qualitative survey data acquired from interviews with a sample of LDCs. This approach puts in evidence emerging needs, times, and conditions of this practice and helps to define some key LDC profiles that may orient more inclusive and sustainable mobility policies.

Foreign minors and forced labour in contemporary Italy

The labour of foreign minors living in Italy fits into a double scenario: on the one hand, it evokes aspects or lifestyles typical of their original culture and therefore represents an experience of continuity with it; on the other hand, it is placed in the context of the host country, where young migrants are often employed in low-skilled jobs or are forced to enter the job market as a means to support themselves and their family. This is an entirely transversal problem in the country, concerning both the more industrialised areas of the North and the more agricultural areas of the South. The sectors where the labour of minors is more widespread are commerce, catering, agriculture, and services. Case studies relating to the experiences of young Chinese migrants and children of Moroccan descent living in Italy are presented in this article. The concluding section suggests that there is no single causal factor responsible for child labour. Indeed, subsistence poverty, inequalities in accessing the labour market and parental choices or constraints may influence the decision to coerce a minor to work.

COVID‐19 and the Canadian cattle/beef sector: A second look

After a year of adjusting to the shocks associated with COVID‐19 the Canadian cattle and beef sector faces a relatively optimistic future. This note examines the past year for this supply chain from the perspective of the consumer up to the cow‐calf producer by considering consumer reactions, labor market constraints, and supply responses. In the second quarter of 2020, the sector faced a significant challenge with continent wide shutdowns of beef packers reducing the U.S. beef supply by one‐third and Canadian beef slaughter by almost 60%. These shutdowns resulted in a sharp divergence between wholesale beef prices, which more than doubled, and fed steer prices, which declined by one third. Despite these dramatic shocks, the sector has returned to near normal conditions with prices and production levels similar to those observed prior to the pandemic. The near term prospects for 2021 are very similar to the current market situation.

Caregiving Dads, Breadwinning Mums: Pathways to the Division of Family Roles Among Role-Reversed and Traditional Parents

This study aimed to explore the circumstances and considerations that lead to the allocation of family roles among male carer/female breadwinner families in comparison to traditional parents. A sample of 236 parents with children from birth to 5 years old completed extensive questionnaires about their daily routines and perceptions of their division of responsibilities. Economic considerations or labor market constraints were mentioned as main reasons by parents in both traditional and role-reversed arrangements, however, parents in traditional roles were more likely to mention suitability for the role as a key consideration. The results further showed that main caregivers—fathers and mothers alike—had a higher perception of choice over the allocation of roles and were significantly more satisfied with their division than main breadwinners. The majority of breadwinners wished they could work fewer hours, and breadwinning mothers, more than fathers, wished their partner could work more hours. The findings also shed light on the relationship between perception of choice, satisfaction with the current arrangement and preference for a change in the future.

COVID‐19 and the Canadian cattle/beef sector: Some preliminary analysis

Canada's cattle/beef sector has already weathered a shock after a 2003 case of BSE resulted in closed borders and industry restructuring. Now, the sector has to adjust to similar shocks due to COVID‐19. This paper examines the supply chain from the consumer up to the cow–calf producer by considering consumer reactions, labor market constraints, and supply response. A quarterly market model of North American cattle and beef markets is used to examine price and revenue impacts associated with the market disruptions. Depending on the scenario, there is considerable price and revenue suppression at all levels of the market.

Family Welfare and the Great Recession

The analysis in this paper provides estimates of family welfare losses generated by wage and nonlabor income declines experienced across the Great Recession and by labor market constraints existing postrecession. Welfare losses are greater as families (both married and single) move up the income distribution. Total static welfare losses are estimated to amount to roughly $190 billion, comparing family welfare between 2007 and 2011.

When leaving is normal and staying is novel: Men's labor migration and women's employment in rural Mozambique.

Considerable cross-national research has examined the impact of international labor migration on livelihoods in sending households and communities. Although findings vary across contexts, the general underlying assumption of this research is that migration represents a novel income-generating alternative to local employment. While engaging with this assumption, we also argue that in many sending communities where labor migration has been going on for generations, it is the decision not to migrate and instead to pursue local livelihood opportunities that might constitute a true departure from the expected behavior. Importantly, both the decisions to migrate and not to migrate are part of a household strategy shaped by gendered negotiation and bargaining. Building on these propositions, we use rich survey data from rural Mozambique, a typical setting of long-established large-scale international male labor out-migration, to examine married women's gainful employment outside subsistence agriculture as it relates to their husbands' migration or local work. We find a somewhat lower likelihood of employment among migrants' wives, compared with nonmigrants' wives, and this pattern strengthens with increased duration of migration. However, we also find substantial differences among nonmigrants' wives: women married to locally employed men have themselves by far the highest probability of employment, while wives of nonemployed men are no different from migrants' wives, net of other factors. These findings are discussed in light of interconnected gendered complexities of both migration-related and local labor market constraints and choices.

Population ageing and a lack of semi-skilled workers in Switzerland

Purpose The question being discussed in this paper is how can refugees be integrated into a host country’s labour market with Switzerland serving as a case example experiencing specific local challenges, such as an aging society and gaps in the labour market, particularly relating to semi-skilled jobs in the public sector. The paper aims to discuss this issue. Design/methodology/approach This paper examines Switzerland’s intake of refugees and analyses existing refugee and labour market policies and how the integration process is being managed by the authorities and responded to by Swiss citizens. Findings The analysis shows that refugees can potentially find jobs in all three segments of the Swiss labour market (highly skilled, semi-skilled and low-skilled labour) and provide mutually beneficial solutions for all parties concerned that include: for refugees seeking employment and asylum; for the aging population requiring care delivered by low- and semi-skilled workforce; and for public and private sector enterprises in need of qualified and motivated labour force. Originality/value This paper examines the interplay between refugees seeking work and demonstrates the importance of relating job entry by refuges with actual labour market constraints and opportunities of the host country, Switzerland.

Identity Exploration or Labor Market Reaction: Social Class Differences in College Student Participation in Peace Corps, Teach for America, and Other Service Programs

Service programs and other short-term work experiences have become much more common for young adults after college graduation. Emerging adulthood has become a widespread explanation for this phenomenon, namely that a new life stage has arisen between adolescence and young adulthood in which emerging adults prioritize identity exploration. However, using in-depth interviews with juniors and seniors at an elite university, I find that this explanation overlooks two critical social constraints that young adults face during this time period that are shaped by their social class: work values and labor market conditions. Rather than all students seeking to participate in service programs in order to engage in identity exploration, I find four orientations towards service programs, shaped by social class background, current sense of financial stability, and work values: 1) participating as a backup plan to boost resumes, 2) seeking meaningful short-term work during an unsettled stage of life, 3) seeking opportunities to enact identity projects around helping others, and 4) using the programs to facilitate long-term career entry. Thus, I argue that the rise of short-term work experiences after college graduation should not be viewed as young adults engaging in a distinct life course phase prior to entry into full adulthood. Instead, the rise of these programs should be seen as a response to students’ social class backgrounds and the various labor market constraints each group faces.

The Impact of Gender Quota Laws on Board Composition, Risk Taking and Performance of Banks: International Evidence

Using a sample of 469 banks from 39 countries between 2008 and 2017 and a generalized difference-in-differences methodology, we show that board gender quota laws lead to increased female board representation. We find an increase in risk taking and systemic risk and worse long-run operating performance post quota law for banks most impacted by the reforms, and those located in countries with a smaller pool of qualified women executives. Results suggest that the addition of younger and less experienced female board members to important board committees due labor market constraints drive the risk taking and performance outcomes.

Unequal Laws and the Disempowerment of Women in the Labour Market: Evidence from Firm-Level Data

Institutions are defined as the set of rules that govern human interactions. When these rules are discriminatory, they may disempower segments of a population in the economic spheres of activity. In this study, we explore whether laws that discriminate against women influence their engagement in the economy. We adopt a holistic approach where we explore an overall measure of unequal laws also known as legal gender disparities and relate it to several labour market outcomes for women. Using data for over 59,000 firms across 94 economies, we find that unequal laws not only discourage women’s participation in the private sector workforce, but also their likelihood to become top managers and owners of firms. Suggestive evidence indicates that access to finance, property ownership, business registration, and labour market constraints are pathways by which legal gender disparities disempower women in the private sector.

Labour market integration of immigrants in Portugal in times of austerity: resilience, in situ responses and re-emigration

ABSTRACTThe austerity regime implemented in Portugal to face the financial and economic crisis caused readjustments in the country’s productive structure and labour market with an impact on immigrants’ lifeworlds. This article aims at analysing the consequences of the crisis in the lives of third-country nationals living in Portugal, reflecting particularly on the impact on their integration process, understood as economic incorporation, in a context of increasing work precariousness. Special attention will be given to the resilience of immigrants visible in their responses to the labour market constraints, namely through their choices of geographic (im)mobility and also the implementation of strategies to ‘normalise’ their lives. Starting with a brief reference to the meaning of integration in Portugal in a context of crisis, we draw on data from two research projects, arguing that despite the increased hardship, the resilience of foreign workers is considerable and they still think it is worth coming to Portugal. The strategies adopted may be either in situ or implying onward migration, resulting from the combination of context opportunities and individual agency. Factors like legal status, education and having relatives abroad play a moderate role in this process.