Labor-intensive Sectors Research Articles

STAYING OR LEAVING? EXPLORING THE ROLE OF JOB EMBEDDEDNESS IN REDUCING TURNOVER INTENTION AMONG HOTEL EMPLOYEES

This research examines the effect of JobEmbeddedness (JE) on turnover intentions (TI) among staff in the hotel industry of Uttarakhand, India. JE, including Fit, Links, and Sacrifice, has become a crucial paradigm for comprehending employee retention. A quantitative technique was employed to collect data from 79 employees across eight hotels. A multiple regression analysis was performed to examine the impact of the dimensions of JE on turnover intention. Results indicate that all three aspects of job embeddedness substantially diminish turnover intention, with Sacrifice exerting the most pronounced influence. Employees who recognize significant compromises associated with leaving, such as the forfeiture of perks and relationships, are the least inclined to indicate intentions to resign. Fit and Links are essential, as a robust alignment between personal values and organization, along with social relationships in the workplace, leads to reduced turnover intentions. The research highlights the significance of incorporating job embeddedness into retention tactics, especially in high-turnover sectors such as hospitality. By concentrating on the aspects of Sacrifice, Fit, and Links, hotel managers can bolster employee retention, diminish turnover expenses, and augment organizational stability. These findings provide significant insights for HR professionals and enhance the prevailing literature on JE and turnover in labor-intensive sectors.

Assessing the impact of the European Union-Vietnam free trade agreement on labor market and employment in Vietnam

PurposeThis study investigates the impact of the European Union-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s labor market and employment outcomes, considering the potential distributional consequences across various groups of workers and regions.Design/methodology/approachA comprehensive quantitative framework is employed, combining the gravity model of trade to estimate the EVFTA’s effects on trade flows, the CISAF_M1 model to simulate sectoral employment impacts and econometric models to analyze the effects on wages and decent work. The analysis draws upon a rich dataset spanning the period before and after the EVFTA’s implementation.FindingsThe EVFTA has significantly boosted Vietnam’s exports to the EU, leading to substantial job creation in labor-intensive sectors such as textiles, apparel and footwear. The agreement has also contributed to wage growth and improved access to social insurance for workers in export-oriented industries. However, the impact on other aspects of job quality is less clear. The distributional analysis reveals that the EVFTA’s employment effects have been relatively balanced across gender but have favored younger and less skilled workers as well as those in rural areas.Originality/valueThis study provides a comprehensive and nuanced assessment of the EVFTA’s impact on Vietnam’s labor market, addressing a gap in the literature on the employment effects of new-generation free trade agreements in developing countries. The findings highlight the importance of considering distributional aspects when evaluating the socioeconomic implications of trade liberalization and offer valuable insights for policymakers aiming to promote inclusive growth in the context of deepening international economic integration.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2024-0236

Substitution effect of Asian economies on China’s industrial and supply chains: from the perspective of global production network

This paper views China Production Network (CPN) as an integral component of the Global Production Network (GPN) and constructs null model (GIVCBN-I model) and the counterfactual model (GIVCBN-II or GIVCBN-III model) to identify and measure the potential industrial relocation risk exposure of CPN based on the Multi-Regional Input-Output (MRIO) table. The main findings are as follows. Firstly, Altasia will induce more of China’s industrial and supply chains to break compared with ASEAN, which also means that strong industrial complementarity exists between Japan, South Korea, India, Bangladesh and the ASEAN member countries, enabling Altasia to have a more significant substitution effect on China. Secondly, the counterfactual models’ network-level characteristic indicators are worse than those of the null model in economic terms, suggesting that removing trade barriers for intermediate goods within Altasia could lead to the decoupling of industrial sectors in the CPN, thereby accelerating the trend of China’s industrial and supply chains relocating offshore. Thirdly, according to the comparison results of node-level characteristic indicators, Altasia has weakened China’s influence scope, profitability, and robustness of risk within the global industrial and supply chains, but mainly concentrating on its resource-intensive and labor-intensive sectors rather than capital-intensive and technology-intensive sectors, which indicates that some China’s industrial sectors still maintain substantial competitive advantages in the GPN. In sum, this paper provides theoretical guidance for identifying and analyzing the trends of industrial relocation in the Asia-Pacific region and helps industrial policymakers deepen the understanding of regional economic integration and its impact.

When Monopsony Power Wanes

Abstract In this Part 2, Subjective Agency, I delve into the evolving power and agency of workers as structural conditions undergo transformation. Part 1 described how the law of competition propels firms towards centralisation, gradually diminishing the monopsony power wielded by global buyers in labour-intensive sectors. While manufacturers gain more power and significance, capable of undermining workers’ power, they also become susceptible to disruption. This section introduces the concept of Degree of Spatial Inflexibility (dsi). It posits that as a manufacturer’s monopoly power increases, the monopsony power in the supply chain decreases. However, this elevated monopoly power simultaneously establishes a higher dsi, amplifying the potential for worker disruption. It is essential to recognise that structural power shifts do not guarantee automatic benefits for workers; instead, they necessitate workers to capitalise on these vulnerabilities. This establishes a dialectical relationship between the evolving conditions of capital outlined in Part 1 and the subjective agency of workers, as detailed in Part 2 below.

IMPACT OF CONSTRUCTION INVESTMENT ON THE UNEMPLOYMENT RATE IN NIGERIA

Nigeria being an export-driven economy with a primary focus on oil and gas has a high rate of unemployment. However, the construction industry as a labour-intensive economic sector may provide the prospect for full employment. Hence, this study investigates the effect of construction sector investment on the unemployment rate. Time series data was extracted from the World Bank’s World Development Indicators (WDI) for the years 1991 through 2020. The study adopted multiple regression and Autoregressive Distributed lag (ARDL) models for analyzing the data. From the result, the models' estimate indicates that the only significant predictor of the current unemployment rate is the lagged unemployment of the previous year. Both the construction investment growth rate and the rate of economic growth do not have a substantial effect on the current unemployment rate which is contrary to Okun’s law. Based on the findings, this study recommends diversification of the economy in favour of labour-intensive sectors like construction and manufacturing for sustainable solutions to unemployment in Nigeria.

The Transition of South Korea’s Economic Growth Drivers — From Labor-Intensive to Knowledge-Intensive Industries

This paper examines the remarkable economic transformation of South Korea from the 1960s to the present, focusing on the transition from labor-intensive to knowledge-intensive industries. Initially, South Korea’s economic strategy centered on export-oriented industrialization, leveraging labor-intensive sectors such as textiles, footwear, and electronics assembly. This approach facilitated rapid GDP growth, increased employment rates, and significant urbanization. However, in the 1980s, South Korea began shifting towards more technologically advanced and capital-intensive industries in response to rising wages, global competition, and changing market demands. Strategic government policies, including substantial investments in research and development (R&D) and educational reforms, played a crucial role in this transition. By the 2000s, South Korea had successfully developed a robust innovation ecosystem, with key industries such as information and communication technology (ICT), biotechnology, finance, and cultural industries driving economic growth. The study highlights the importance of strategic government intervention, investment in human capital, and fostering an innovation-friendly environment. The paper concludes with policy implications for other developing economies and suggestions for future research.

Potential Impact of Withdrawal of Generalized System of Preferences for India by European Union

Trade between India and Europe has been growing at strong pace for the last two decades. India’s goods exports to Europe have increased from USD 12.3 Bn in 2002 to USD 68.9 Bn in 2002. During the same time period India’s export products eligible for Europe Generalized System of Preferences (GSP) has also risen in absolute terms from USD 5.8 Bn in 2002 to USD 19.7 Bn in 2022. While the absolute value of GSP covered products has increased, the percentage coverage of India’s export products eligible for Europe GSP has fallen from 47% in 2002 to just 29% in 2022. Since, the end of 2022, India is graduating out of many sectors covered under the GSP regime. While, this is a major concern for policymakers, and exporters in general, the potential impact has not been quantified. This article quantifies this impact applying CGE modelling through GTAP. The results show that, while India’s overall exports are affected only to a minimum extent by the removal of GSP, it is mainly due to the growth in non-GSP sectors and services exports. However, the negative shock on some labour-intensive sectors will have an impact on the country’s overall GDP.

Beyond the collateral channel: Real estate prices and manufacturing firm investment in China

Recent studies show that real estate price appreciation raises firms’ debt capacity and therefore investment. However, appreciation of real estate prices may also push up production costs and thus discourage investment incentives. Using a large panel data set of Chinese manufacturing firms, we document that local real estate price appreciation had significant and robust negative effects on firm investment. The size of the negative effect is economically large, with a one standard deviation change in real estate prices explaining 17% of the variation in firm investment. Further exploration reveals that such negative effects of real estate prices on investment are stronger for firms in labor intensive sectors.

A New Explanation for Changes in China's Labor Income Share: Capital Heterogeneity

In this paper, a two-sector general equilibrium model with Putty-Clay technology is constructed, and the characteristics of capital heterogeneity are depicted in the model in the form of capital goods productivity variance. Through the capital selection mechanism, the impact of capital heterogeneity on labor income share is explored. It is found that the inverted U-trend of relative capital heterogeneity in capital-intensive industries is the cause. Second, the mechanism of capital heterogeneity affecting labor income share lies in the capital goods selection mechanism. With the increase of capital heterogeneity, the investment uncertainty faced by enterprises is strengthened. When choosing capital goods, enterprises will diversify investment and reduce capital intensity. After capital goods are put into production, firms will use high-productivity capital goods and shut down low-productivity capital goods, leading to a decline in capital utilization, the increase in total factor productivity, and the increase in output. Third, in the capital-intensive sector, the increase of capital heterogeneity will reduce, while in the labor-intensive sector, the opposite effect is presented. The new characteristics of Chinese capital and the change of labor income share, and has important policy reference significance for promoting.

CGE Analysis of the Impact of the 2024 Minimum Wage Increase on the National Economy in Indonesia

One of the minimum wage problems is caused by workers/laborers' needing to agree with the wage increase set. The minimum wage increase is still minimal compared to the high worker need. The Labor Organization president called the government to raise the provincial minimum wage (UMP) and district/city minimum wage (UMK) 2024 by 15%. This figure is obtained from the Decent Living Needs (KHL) survey results and other indicators such as inflation and economic growth. On the other hand, the minimum wage increase of 15% is considered by employers to be unrealistic, considering the condition of the national economy is hit by uncertainty. The government said that determining the minimum wage based on PP 36/2021 and considering the welfare of workers/laborers’ also looks at the Company's capabilities. This paper aims to see new macroeconomic and welfare conditions due to the increase in the minimum wage by 15%. Using the general equilibrium model of static computing (CGE), the analysis results show that an increase in the minimum wage leads to a decrease in demand for labor, especially in labor-intensive sectors. The increase in wages impacts increasing household income, thus indicating an increase in household welfare. However, inflationary pressures brought about by the minimum wage increase mask the increase in revenue, resulting in a decrease in household consumption budgets. This translates into a loss of net well-being, with a more significant impact on urban households than rural households. The output of most sectors, especially labor-intensive sectors, declined, but nominal GDP increased. The increase in nominal GDP is due to rising prices, not actual economic output.

Reconceiving China's urban economic transition through symbiotic state-firm dynamics: An integrated perspective from urban governance and global production networks

China's urban economic transition since the 2000s has garnered considerable scholarly interest. Two distinct bodies of scholarship, namely urban governance and global production networks, have investigated this phenomenon, each offering unique insights either from an endogenous state-centric or exogenous firm-centric approach. The former has justifiably accentuated the centrality of the state in shaping Chinas urban-regional economic reconfiguration but lacks exploration of the multifaceted ways in which state apparatus engages with a spectrum of quotidian firm-level activities and the negotiation power these firms wield. The latter embraces an exogenous firm-centric perspective on the economic transition in East Asia latecomer regions, stressing forces of globalisation, foreign investment, and intra/inter/extra-firm networks, but tends to bracket the state into the institutional background and, therefore, downplays its agentic role. By initiating a dialogue between these two theoretical frameworks, this paper formulates a dialectical state-firm relational approach, offering a revitalised, integrative comprehension of China's urban economic transformation. Employing Dongguan - a globally recognised hub for ICT manufacturing - as an empirical focal point, it elucidates how the relational state-firm dynamics evolve temporally, differ spatially across territories and scales, and display distinct contrasts between high-value-added and labour-intensive sectors within the ICT industry.

Unleashing the power of manufacturing flexibility: enhancing performance in Bangladesh's ready-made garment industry

PurposeThis research aims to investigate how manufacturing flexibility can address the challenges of an ever-changing and unpredictable business environment in Bangladesh’s labor-intensive ready-made garment (RMG) industry, which is underserved and situated in a developing country.Design/methodology/approachUsing Partial Least Square Structural Equation Modeling, this study empirically evaluated the relationships between manufacturing flexibility, environmental uncertainty and firm performance. The analysis utilized 320 survey responses from potential RMG experts, representing 95 organizations.FindingsThe study achieved a decision-making model for implementing manufacturing flexibility in the RMG industry of Bangladesh with acceptable model fit criterion. The research pinpointed that workforce flexibility plays the maximum mediating among different types of manufacturing in coping with demand and supply uncertainty in the RMG sector.Research limitations/implicationsThe study made valuable contributions to theoretical and practical knowledge in the context of manufacturing flexibility in Bangladesh’s RMG and other underserved labor-intensive sectors in developing economies. It suggests that managers should shift from defensive and risky business strategies to more aggressive and proactive approaches by utilizing workforce flexibility resources adaptively to enhance manufacturing capabilities and align with dynamic market demand. Additionally, the study offers recommendations for future research to build upon its findings.Originality/valueThis study is unique in its approach because it presents a decision model for implementing manufacturing flexibility in a labor-intensive industry in a developing economy, specifically the RMG industry in Bangladesh, whereas previous research has primarily focused on high-tech industries in developed economies.

Domain Faktor Kesehatan Mental Pekerja Konstruksi

Construction industry is a labor-intensive sector that absorbs a large number of workers. Therefore, the industry must be able to pay attention to human resources which are a valuable asset. One of them is related to the mental health of construction workers. Even though the construction industry is known for its stressful environment, not much research has been conducted regarding the fulfillment of mental health aspects of construction workers, especially in Indonesia. In fact, various mental health disorders such as depression and anxiety can have an impact on the performance of construction workers and industry. This research aims to identify various factors related to mental health that influence construction workers through an integrative literature study. The results of the analysis succeeded in finding 68 factors related to mental health in the construction industry which were grouped into four domains, namely types, causes, impacts and solutions to overcome mental health disorders in the construction industry. Identification of these factors and domains is important as a means of understanding mental health aspects so that they can become a reference for stakeholders, especially the government and construction project organizations, in an effort to increase awareness on the importance of mental health in the construction work environment. In this way, the government and construction project organizations can be proactively involved in realizing the achievement of sustainable development goals, namely good health and well-being.

Analisis Tingkat Pengangguran Sebagai Masalah Sosial Yang Tak Kunjung Usai

Discussion on the issue of unemployment not only focuses on the social aspect but also includes the economic dimension. Unemployment not only presents challenges in the social realm but also influences the economic growth of a country, such as Indonesia. Unemployment refers to the condition when individuals in the workforce desire employment but have not yet achieved it. This research adopts a qualitative approach with data collection conducted through literature reviews, including journals, books, and online sources. Unemployment is a complex problem linked to population growth, economic conditions, government policies, and education levels. It involves aspects of time, labor intensity, and productivity. Unemployment in Indonesia poses a significant problem with economic, employment, and social factors as causes. Its impacts include income reduction, increased poverty, and crime risks. Addressing this requires collaboration between the government, private sector, and society. The government should promote economic growth, enhance education quality, and provide social assistance. Investment in labor-intensive sectors and skills training is also crucial.

The Impact of Input Tariffs on Gender Inequality: An Empirical Study in Indonesia

Introduction/Main Objectives: Discrimination between male and female workers occurs because of the difference in the “endowment” and social and cultural norms, especially in developing countries. This study aims to examine the impact of input tariffs on the ratio of female workers who are differentiated, based on technology-intensity and the labor-intensive sector and the non-labor-intensive sector. Background Problems: Trade openness contributes to technological change so companies reallocate resources more efficiently and reduce discrimi­nation. Previous studies have yielded ambiguous results regarding input tariffs and the ratio of female workers. Therefore this study attempts to estimate the impact of input tariffs on the ratio of female workers in Indonesia. Novelty: In contrast to the previous studies that did not include the lag-dependent variable, this study includes the lag variable female labor ratio as an exogenous variable in the estimation. Research Methods: Using FE-IV, panel data at the company level for the period from 2003 to 2015. Finding/Results: The estimation results show that trade openness can eliminate discrimination and increase the ratio of female workers. When firms are differentiated by their technology-intensity, the reduction in input tariffs leads to an increase in the ratio of female workers in medium and high technology-intensity firms, and non-labor-intensive firms, where the impact is the same between importing and non-importing firms. The estimation results show that trade openness can eliminate discrimination and increase the ratio of female workers entering the market. Conclusion: Trade openness can have both positive and negative impacts on Indonesian workers, especially female workers. To increase female labor participation, the Indonesian government needs to implement supporting policies, to improve equitable access to education for all citizens in Indonesia, needs to provide child-care facilities around office areas, flexibility in working hours for women, training and skills, and provide opportunities for women to occupy strategic positions.

How Does Sustainable Organizational Support Affect Job Burnout in the Hospitality Sector? The Mediating Role of Psychological Capital

The hospitality industry is often regarded as a labor-intensive sector which is particularly susceptible to job burnout among employees, emphasizing its significant reliance on human resources for various service-oriented functions. This study explores the intricate dynamics between organizational support, job burnout, and psychological capital in the context of the hospitality sector. It aims to investigate how the level of support provided by organizations influences the occurrence of job burnout among employees in the hospitality industry, with a specific focus on the mediating role played by psychological capital. This research employs a theoretical framework to examine the relationships between these key variables and adopts structural equation modeling (SEM) to analyze the data. The study encompassed data from a total sample of 385 employees, with a gender distribution indicating that the majority (64.1%, N = 247) were male, while 35.9% (N = 138) were female. The main results showed that psychological capital was significantly enhanced by organizational support (β = 0.714, t-value = 45.211). On the other hand, it was found that psychological capital (β = −0.092, t-value = 2.176) and organizational support (β = −0.477, t-value = 11.674) had a substantial negative impact on job burnout. The finding of this study showed that psychological capital mediates the relationship between job burnout and organizational support to some extent (β = −0.066, t-value = 2.134). The findings are anticipated to shed light on effective strategies for organizations to mitigate job burnout by fostering positive psychological capital through supportive organizational practices, ultimately enhancing the well-being and performance of employees in the demanding and dynamic field of hospitality. By unraveling the interplay of organizational support, psychological capital, and job burnout, this study contributes valuable insights to academia, sustainable occupational health, and practitioners in the hospitality sector.

Digital technology and manufacturing industrial change: Evidence from the Chinese manufacturing industry

This study utilized data from 2011 to 2020 across 29 manufacturing industries in China to comprehensively analyze the macro-level impact of digital technology applications on industrial transformation. The main findings are as follows: Firstly, a significant positive correlation between digital technology application and industrial change was observed, with an average effect of 1.2128 and statistical significance (α = 1 %). In specific sectors such as textile manufacturing, resource processing, and machinery equipment manufacturing, the positive influence of digital technology on industrial transformation is evident, with respective effects of 1.2088, 1.0934, and 1.1737-all statistically significant (α = 1 %). Secondly, examining heterogeneity among different manufacturing industries revealed that process manufacturing and labor-intensive sectors exhibited more pronounced responses to digital technology, with impact coefficients of 1.2189 and 1.2784, both significant (α = 1 %). Robustness tests confirmed the reliability of these results, demonstrating that the positive relationship between digital technology application and industrial change remained robust even after addressing endogeneity concerns. Lastly, a mechanism analysis uncovered the pivotal roles of innovation mechanisms, talent effects, and government institutional arrangements in the digital technology-driven industrial transformation. Notably, the machinery and equipment manufacturing industry displayed a significant positive correlation with the innovation mechanism, with a coefficient of 3.8344. The resource processing industry showed a positive impact associated with the talent effect, with a coefficient of 0.0002. However, in the textile manufacturing and machinery and equipment manufacturing sectors, government institutional arrangements were negatively correlated with industry performance, with coefficients of −0.0056 and −0.0096, respectively. Overall, these findings offer valuable insights into how digital technology shapes the transformation of the manufacturing industry, holding great theoretical and practical significance for guiding the industry's digital transformation efforts.

Performance, Challenges and Policies, Food Security in India

Food availability is a necessary condition for food security. India is more or less self sufficient in cereals but deficit in pulses and oilseeds. Due to changes in consumption patterns, demand for fruits, vegetables, dairy, meat, poultry, and fisheries has been increasing. There is need to increase crop diversification and improve allied activities. It may be noted that the slowdown in agriculture growth could be attributed to structural factors on the supply side, such as public investment, credit, technology, land and water management, etc., rather than globalization and trade reforms per se. Access to food can be increased through employment due to growth in labour intensive sectors and/or through social protection programmes. The malnutrition problem is much broader than that of access to food. The South Asian Enigma (levels of malnutrition in Asia are higher than in Africa) is well known. India has malnutrition levels almost the levels double those of many countries in Africa. This problem needs a multi-disciplinary approach covering diet diversification including micronutrients, women’s empowerment, education, health, safe drinking water, sanitation, and hygiene. India has government programmes such as TPDS including AAY, nutrition programmes like mid-day meals, and ICDS to improve food and nutrition security. NREGS and self employment programmes can also increase access to food and nutrition. Social protection programmes in India helped in improving incomes and providing protection from shocks for the population, particularly the poor. However, there are a number of gaps and inefficiencies in social protection programmes. Under national food security law, the government wants to provide rice and wheat to the poorest of poor at Rs. 3 per kilogram. This is too narrow an approach for implementation of the Right to Food. The Right to Food campaign specifies several other things to be included, apart from universal PDS, under the Food Entitlements Act. This research paper examines performance, challenges, and policies in food security in terms of availability, access, and absorption or nutrition.

Analysis of Zombie Enterprises' Retention and Departure Based on Game Theory

Zombie enterprises, predominantly found in state-owned heavy industries and labor-intensive sectors, have emerged as a crucial challenge in recent years' supply-side structural reforms. To address this issue, this study constructs an evolutionary game model involving enterprises, banks, and the government. By employing replicated dynamic equations, the analysis examines the impact of factors such as the cost of enterprise exit, implicit benefits after bankruptcy, on the decision-making of enterprises to stay or exit. The research indicates that the cost of continuing operations for zombie enterprises, bankruptcy costs, corporate income tax rates, the magnitude of implicit benefits from continuing operations, bank loan interest rates, and the expected returns from diverting loan amounts to other purposes can influence the outcomes of the game. Ultimately, from a government perspective, relevant recommendations are proposed to provide insights into effectively addressing the problem of zombie enterprises.

Optimizing worker productivity and the exposure to hand-arm vibration: a skill-based job rotation model

ABSTRACT Productivity and concerns regarding the well-being of workers exposed to vibrations stand as significant topics within labor-intensive sectors. In particular, this study contributes to the existing research by analyzing the problem with linkages among worker skill level, production rates, and vibration exposure. A bi-objective mixed integer linear programming model was employed to optimize both productivity and the exposure to hand-arm vibration in the manufacturing workplace. A sensitivity analysis was carried out to examine the impact of key parameters on the trade-off between productivity and vibration exposure. The results demonstrate the model’s effectiveness in determining the best job rotation schedules by achieving optimal productivity and vibration exposure for low and medium problem sizes. Moreover, the numerical case study points out that strengthening the workforce by adding more proficient skilled workers can maintain a good level of productivity with a decreased likelihood of excessive vibration exposure.