Labour Market Participation Research Articles

Home work: Exploring the labor market effects of subsidizing domestic services

This paper analyzes subsidies for the domestic services sector, an increasingly popular policy to create employment opportunities for low-skilled workers. Using Belgian administrative data, a differences-in-differences approach, and a shift-share instrumental variable, we estimate the local effects of the policy in targeted industries as well as overall effects on the labor market. We find that domestic service subsidies can increase female employment in the subsidized industries as well as the overall employment rate. This increase in employment is primarily driven by an increase in (formal) labor market participation and, to a lesser extent, a reduction in the rate of participation in unemployment insurance and in other social welfare programs. We also find that these subsidies can lead to an increase in the rate of work incapacity, likely due to the fact they broaden the population that can access the social safety net.

Parental allowance increase and labor supply: Evidence from a Czech reform

We study the effect of a substantial increase (36%) in parental allowance, a universal basic income-type benefit, on the labor supply of parents of young children in the Czech Republic. Parental allowance does not preclude labor market activity, which allows us to estimate the income effect. We find that the reform resulted in a 4.8 percentage point (11%) decrease in labor market participation of mothers of young children. Mothers with only one child (7.8 p.p., 20%) and university-educated mothers (17 p.p., 32%) reacted particularly strongly. The percentage reduction in hours worked was virtually identical to that in labor force participation. We argue that the sizeable labor supply reduction was driven by the option to extend the parental allowance period, which enabled mothers to postpone their return to work. We find no effect on the labor supply of fathers of young children.

Implications of Childhood Autism Spectrum Disorder for Maternal Employment: United States vs. Norway

ObjectivesA country’s social welfare system may play an important role in maternal employment. This study compared the labor market participation of mothers of children within the United States (U.S.) and Norway to examine whether the child’s age and severity of the ASD affected mothers’ employment differently between the two countries.MethodsThe 2019 National Survey of Children’s Health was used for the U.S. analysis, and the 2019 administrative register data were used for the Norwegian analysis. A logit model was used to analyze the impact of a child’s age and ASD severity on maternal employment in the U.S. and Norway. We presented the results as average marginal effects obtained from the logistic regression analyses.ResultsAfter adjusting for mothers’ sociodemographic variables and the child’s age, U.S. mothers of children with mild ASD and moderate/severe ASD had respectively 12 and 25% points lower probability of being employed than U.S. mothers of children without special health care needs. In Norway, mothers of children with moderate/severe ASD had a 13% points lower probability of employment than mothers without special health care needs. The probability of being employed for mothers caring for a child with ASD was significantly greater as the child got older in both countries.Conclusions for PracticeThe employment gap was more substantial in the U.S. than in Norway. A general high employment participation rate among women and an elaborated welfare state and policy package seem to benefit employment among mothers of children with ASD in Norway.

The Impact of Manufacturing Credentials on Earnings and the Probability of Employment

This article examines the labor market returns to earning industry-certified credentials in the manufacturing sector. Specifically, the authors are interested in estimating the impact of a manufacturing credential on earnings and probability of employment, both overall and within the pre- and post-credential industry of employment. They link students who earned manufacturing credentials to their educational enrollment and completion records, and then further link them to IRS tax records for earnings and employment and to the American Community Survey and decennial census for demographic information. Earnings trajectories are presented for workers with credentials by demographic group, including age, race/ethnicity, gender, and educational attainment. To obtain more causal estimates of the labor market impacts of credentials, the authors implement a coarsened exact matching strategy to compare outcomes between otherwise similar people with and without credentials. Findings show that the attainment of a manufacturing industry credential is associated with increasingly higher earnings and a higher likelihood of labor market participation.

Individual and regional determinants of women’s participation in the European labour market: a Labour Force Survey empirical study

AbstractIn line with the existing literature, the primary focus of the present paper is on understanding the multifaceted factors contributing to unequal employment opportunities for women and the potential implications for both individuals and society. Specifically, the objective is to identify meaningful risk factors that affect the probability of being employed for women in the 20–49 age group, exploring possible demographic, educational, social, and family factors, as well as territorial context factors. The analysis is conducted on the three most populous European countries (Italy, France, and Germany) as representatives of different welfare regimes. The analysis exploits the rich information available in the micro-data of the Labour Force Survey (2021) as well as Eurostat regional statistics considering individuals nested in regions (NUTS 2). A deep analysis of empirical findings sheds light on employment determinants and motivations for not working, which appear to be essentially related to family and demographic factors. These results reveal the country-specific profiles that indicate greater risk of non-employment and also provide a basis for suggesting different policy implications.

Применение алгоритмов машинного обучения для сокращения информационной асимметрии и прогнозирования социальных изменений на рынке труда: вызовы и возможности

This paper explores the impact of machine learning (ML) algorithms on reducing information asymmetry in the labor market and forecasting social changes, presenting challenges and opportunities for employers and job seekers alike. It addresses the issues of information asymmetry stemming from disparities in data access between labor market participants, as well as variations in the quality of information obtained, complicating the hiring and job search processes. Theoretical foundations of big data and its analysis using ML are discussed for identifying trends and patterns conducive to more efficient labor market functioning. ML methods including predictive models, clustering, classification, and text analysis are presented, describing their application in reducing information asymmetry and adapting to changing market demands. Examples of ML algorithm usage in real business processes are provided, showcasing their contribution to optimizing recruitment and personnel management processes, as well as forecasting future trends regarding significant competencies and skills. The importance of adapting to new challenges and opportunities presented by ML algorithms for maintaining competitiveness and sustainable development in the labor market is emphasized. By leveraging big data analytics, employers and job seekers can make more informed decisions, leading to more efficient labor market outcomes. However, challenges such as data privacy and algorithmic bias must be addressed to fully realize the benefits of ML in the labor market.

The principle of adequate social protection in the European Pillar of Social Rights: Assessing the instruments used to realise its potential

Improving the social security protection of atypical workers has been high on the EU agenda in recent years. With the adoption of the European Pillar of Social Rights in 2017, the EU wished to break away from a decade of austerity measures. The EU further developed the right to adequate social protection in the Pillar through the Recommendation on access to social protection for workers and the self-employed. This instrument urges EU Member States to ensure adequate access to social protection for workers, regardless of their employment relationship, and the self-employed. As part of the EU's recovery strategy during and after the Covid-19 crisis, several financial instruments were developed to support EU Member States. Through the Temporary Support to Mitigate Unemployment Risks in an Emergency, EU Member States received support for job retention schemes. The EU also adopted the Recovery Resilience Facility, which provided grants and loans. Another support instrument was the European Social Fund Plus. This article discusses those recent EU initiatives, focusing on unemployment and the protection of atypical workers and the self-employed. With the introduction of the European Employment Strategy (1997), a closer link was made at EU level between unemployment, increasing labour market participation and activation measures. Less attention was paid to ensuring adequate unemployment protection. In recent years, however, it appears that the EU has been playing an increasing role in providing funding for temporary support and in introducing changes to EU Member States’ policies.

Education, employment, and care work over adulthood: gendered life course trajectories in Canada and Germany

ABSTRACT This article compares the education, employment, and care work biographical sequences of Canadian and German women and men from late adolescence into mid-adulthood. Through the lenses of comparative gendered life course theory and welfare regime theory, sequence and cluster analyses are used to determine the adult life course sequences of women and men in each country and to assess the extent to which they differ across contexts. The analyses reveal clear gender differences in work–family balance in labour market participation and unpaid care work. Groups also differ strongly on educational attainment, income, and family composition. Comparatively, gender differences are less marked in the Canadian context. These results suggest that differing gendered trajectories result in diverse outcomes depending on the national context, shaping different outcomes for women cross-nationally. Our findings highlight how historical and contemporary country-specific welfare state policies support or hinder women as active and productive members of society.

Defamilization? Not for everyone. Unequal labour-market participation among informal caregivers in Europe

Growing care dependencies among the elderly due to population ageing in Europe challenge the labour-market participation of informal caregivers. While familiarized care regimes incentivize family caregiving by providing many cash-for-care-benefits, resulting in reduced labour supply, defamiliarized care regimes allocate more public spending to care infrastructure, alleviating the care responsibilities placed on family members. At the same time, care provision on the micro-level is distributed unequally across gender, age, and socioeconomic status. The question then emerges: Does the labour-market participation of informal caregivers vary between and within countries depending on the social-expenditure policy of welfare states? To answer this research question, a multilevel design was used, employing SHARE data and macro-indicators from OECD and Eurostat databases. The results reveal higher probabilities of labour-market participation for informal caregivers in general when social expenditures on formal care infrastructure are higher. However, labour-market participation was observed as being unequally distributed among the heterogeneous group of persons with and without caregiving duties. Women and individuals of lower socioeconomic status did not benefit from social expenditures in the same way as their counterparts, leading to lower levels of labour-market participation.

Economic Growth and Female Participation in the Labour Market: Gender Disaggregated Data

The study aims to examine the impact of economic growth on female labour market participation in Kenya with data spanning between 1991 and 2022. Labour-force data disaggregated by gender are important to monitor the dynamic of gender inequalities in the labour market. The secondary data used to construct the time series was obtained from the World Bank and the International Labour Organization sources. The research was informed by the Feminisation U hypothesis, which describes the tendency of female labour force participation to first decline and then rise in the process of economic growth. The study used a fully modified ordinary least square (FMOLS) and Granger causality test to analyse the long-run effect of economic growth on women's participation in the labour market. The study results indicate that economic growth positively and significantly contributes to women’s participation in the labour market in the long run. Furthermore, the results of the control variables suggest that education has a beneficial effect on women's workforce, while women’s access to the workforce is hampered by male labour market participation, fertility rate, female self-employment and rate of urbanization. The study suggests to policymakers that the strategy to success is to facilitate education, vocational training, and social change that enable women to play the same role as men in the labour market. Finally, women must be in productive sectors and government should remove barriers to ownership of factors of production to encourage them to participate in economic activities and the labour market.

Gendered processes of recruitment to elite higher educational institutions in mid‐twentieth century Britain

AbstractThis article uses rare and detailed data on matriculants to the University of Oxford during the middle decades of the twentieth century as a prism through which to consider gendered processes of recruitment to elite institutions. The article makes four key claims. First, the broader shifts in middle‐class women's labour market participation in the mid‐century are reflected in patterns of maternal occupation among matriculants, shifting from being predominantly housewives to professionals across the period. Related to this, the fathers of matriculants had similar professions whether their child was male or female, but mothers’ professions varied much more between male and female students. There was much more variation between mothers and fathers of students who attended what we term ‘elite’ schools. Finally, across the mid‐twentieth century, the number of male students from elite schools declined significantly, whereas the number of women students who had attended an ‘elite’ school was much steadier. Given the centrality of Oxford for processes of elite recruitment, these trends in their matriculants will have far wider implications for who gets access to elite positions in the decades after these shifts were occurring, revealing in some ways the continuity of class privilege and the increasingly salient role of mother's occupation in processes of elite reproduction.

Energy access and female labor force participation in developing countries

Access to reliable modern energy services and female economic empowerment are vital for sustainable development of developing countries. While micro-level evidence suggests that energy access can alleviate women's household burdens and enhance their labor market participation, there is little macro-level evidence on this relationship and limited insights on how institutional environments influence it. This study fills this gap using a national-level dataset covering 78 developing countries from 2000 to 2020 and analyzing how access to electricity and clean cooking fuels affects women's labor supply and demand, respectively. Results show that clean energy access increases female labor force participation, particularly in rural areas and small island developing countries. Electricity access reduces female unemployment, especially in urban areas and African countries. Moreover, the importance of country risk and governance capability in shaping this relationship is highlighted. These findings provide valuable insights for enacting synergy policies targeting sustainable development goals.

공통요인 효과를 고려한 아태지역 국가의 합계출산율 결정요인 분석

Purpose - This study examines the impact on total fertility rate in 30 countries in the Asia-Pacific region, focusing on female labor market participation and labor market instability. Design/Methodology/Approach - There is a common factors effect of cross-sectional dependence on the total fertility rate, explanatory variables, and residuals. Therefore, it was estimated using the CS-ARDL (Cross-Sectionally augmented Autoregressive Distributed Lags) model that considers the dynamics of total fertility rate, common factors effect, and heterogeneity by country. Findings - Female labor market participation and labor market instability have a negative (-) effect on the total fertility rate, but the coefficient of the interaction term is estimated to have a positive (+) sign, so it should be considered in the impact of the labor force participation rate and unemployment rate. Research Implications - A low female labor force participation rate and unemployment rate drive a high total fertility rate, but countries with a high labor force participation rate should have a high unemployment rate, and countries with a high unemployment rate should have a high labor force participation rate. Therefore, policies are needed to enable women to balance work and family life, and facilitate entry into the labor market.

Family Restrictions at Work

This paper analyzes one of the causes of the current gender-unbalanced situation in the labor market: the discrimination that individuals face at work due to their commitment to unpaid care work. It aims at finding mechanisms that may induce a change from the current unbalanced situation to a world in which males and females are found in more equal shares in all professions and at all levels. I construct a formal model that includes the heterogeneity of individuals regarding their family commitments and I investigate how it affects the individual’s optimal labor market participation. The welfare of individuals with commitment to family duties is reduced for two different reasons: for not being able to participate as much in the labor market and thus receive a lower labor income and for not being able to contribute as much to their family commitments. I compare the results for the female and male sections of the society and I illustrate the observed gender gaps in terms of labor market participation, income levels, and the overall utility obtained. I find that even though the gender wage gap may be alleviated with reductions in the cost associated to unpaid care work, the gender utility gap will persist.

Labour market participation, wages and inequality in the Southern Cone of South America

L’Argentine, le Chili et l’Uruguay partagent de nombreuses similitudes mais ont développé différents systèmes de réglementation du travail et de régimes de négociation collective. Ainsi, leurs indicateurs du marché du travail permettent une analyse comparative particulièrement enrichissante. Cette étude retrace les différences dans les marchés du travail, les salaires et les inégalités pour l’ensemble de la main-d’œuvre, en mettant l’accent sur les travailleurs salariés du secteur privé formel. Les résultats montrent des résultats favorables en Uruguay, le pays avec la couverture la plus élevée et la plus centralisée de négociations collectives. Alors que l’Argentine, cas intermédiaire, est la plus égalitaire mais marquée par une certaine volatilité des relations professionnelles. Le Chili a la couverture la plus faible et le système le plus décentralisé, se trouve dans une position intermédiaire concernant la participation au marché et les salaires, et reste le plus inégalitaire. Le Chili et l’Uruguay présentent en moyenne période les indicateurs du marché du travail les plus solides et les plus cohérents.

Health selection, family division of labour and labour market participation of migrant and Australian born couples

Australia is a multi-cultural society, with the majority of recent migrants arriving from non-English speaking Asian countries. Yet we know little about how ethnic diversity in the population is reflected in employment participation and within-family time exchange. This paper investigates how nonmarket time and labour market time vary across migrant groups from non-English speaking country backgrounds (NESCB) compared with English-speaking country background migrants and non-Indigenous Australians (ESB&AU). It uses a longitudinal instrumental variable method to deal with biases caused by endogeneity and unobserved heterogeneity. We find that nonmarket time is strongly influenced by family circumstances such as having young children and partner’s circumstances (health status and life events including health shocks). The relationship of these factors with nonmarket time varies across our two major groups. For example, the relationship between a partner’s life events and partner’s health status and the other partner’s nonmarket time are significantly greater for NESCB migrant couples than for ESB&AU couples. This connects with our initial theories about the collectivist cultural backgrounds in NESCB couples in maintaining gender roles or different levels of economic security facing NESB migrants that affect how they allocate caregiving and housework time, especially when a partner becomes ill or face a life event. This paper also shows clear evidence of health selection into the labour market, and a strong trade-off between nonmarket and market time in both groups.

Integration of immigrant women in Europe: a multifaceted approach

PurposeThis work analyzes female immigrants’ integration in the dimensions of education, labor market participation and fertility in 15 European countries, considering individual characteristics, including cultural background, host countries’ attitudes towards immigrants, the role of women in the family and country-specific integration policy. All these aspects taken together are crucial to understand the main patterns of integration focusing on gender differences.Design/methodology/approachWe focus on second- and first-generation male and female immigrants between the age of 25 and 41, with a length of stay of at least ten years. Enrollment ratios for tertiary education in parents’ countries, the total fertility rate and the female labor force in the mother’s country represent ethnic background. Diversity in the destination regions is captured by local attitudes towards immigrants, the perceived role of women and national policies to integrate migrants [Migrant Integration Policy Index (MIPEX)]. The data are drawn from the European Social Survey (ESS) for 2010–2018. Our results are based on ordinary least squares (OLS) and logit estimates; multilevel analysis was conducted.FindingsWe find significant evidence of gender role transmission from mother to daughter; age at immigration seems to be crucial to examine the importance of the culture of origin among immigrants. However, females are responsive to attitudes toward immigrants and gender equality in receiving societies, while integration policies, by defining the set of opportunities, may contribute to both genders’ tertiary education and women’s probability of being in the labor force.Social implicationsThis work underlines that integration policies favoring equal rights as nationals may contribute to both women’s tertiary education and their probability of being in the labor force.Originality/valueWe explore female integration in Europe in the dimensions of education, labor market, fertility and the role of both immigrants’ cultural heritage and specific aspects of destination countries. Previous research, particularly in the USA, has generally focused on some of these features at the expense of a more comprehensive approach. This study builds upon the existing literature and contributes to it by taking a multifaceted approach to female integration in Western Europe, which presents not only an institutional context different from the USA but also some heterogeneity with respect to integration policies and socioeconomic factors.

What are the drivers of female labour market participation in North Africa?

What are the drivers of female labour market participation in North Africa?

Institutional ownership and women representation on boards in three different institutional settings

AbstractThis study aims to investigate the moderating effect of country level institutional variables on the relationship between institutional ownership and board gender diversity. Using firm and country level data of three different cultural environments (Gulf Cooperation Council countries, UK, and France) for the years 2018–2019, this study concludes that institutional elements related to women (Women Tertiary education levels; legal support, Economic Participation and culture) create isomorphic pressure on firms that enhance the role of institutional owners in increasing women representation on board of directors. Other governance elements, such as ownership concentration, board independence and board size may indicate governance levels better than board gender diversity in certain institutional environments. The study recommended that board gender diversity should not be a priority for investors and portfolio managers in financial markets where reduced female labor market participation exists. Moreover, quotas may be a good tool for enhancing female representation among boards in contexts that have reduced female labor market participation and high levels of tertiary education attainment to maintain corporate sustainability.

Population Aging and the Retirement Age

ABSTRACTNumerous jurisdictions have recently raised the age of retirement or plan to do so. Pressure to extend people's working lives is due to population aging, which makes it harder to fund retirement through existing methods. Raising the retirement age can improve the ‘dependency ratio’ by increasing the fraction of the population that works (and pays taxes) relative to the fraction retired. This article gives sustained attention to connecting the case for retirement with one view about wellbeing, according to which old age is subject to distinctive goods. The importance of being able to access these goods in old age favours an eventual exit from labour market participation that retirement provisions enable. This view is stronger than one that treats retirement as merely a safety net to enable people to stop work only when advanced aging makes it unreasonably burdensome. At the same time, the view likely does not justify status quo retirement ages, meaning that some increase to the retirement age might be defensible. The article also seeks to illuminate ways in which different aspects of population aging – in particular the distinction between dependency ratios and inequalities in longevity – bear differently on the wider debate about justice and retirement.