Labour Market Issues Research Articles

Financial Development and Income Inequality: Evidence from Latin America, 2001-2021

Numerous studies delve into the theoretical frameworks on finance and inequality. However, there are too few empirical tests on its theoretical relations due to a lack of data to capture financial development. Additionally, due to the many social and economic dimensions of a large economy such as Brazil or Argentina, it is unrealistic to consider that labor market or political issues are the only culprits of income inequality. More research is needed to understand the dynamics of inequality. In this paper, we evaluate the influence of financial development on income inequality using nineteen countries in Latin America from 2001 to 2021. Two indicators of financial development are employed. First, I use the broader definition of money, M3, as a percentage of GDP to capture the liquid liabilities because M1 or M2 may be a poor proxy in economies with weak financial systems. Secondly, the ratio of credit to private sector to GDP is employed because financial intermediaries with higher volumes of credit are more involved in financial development, such as diversifying risk, saving mobilization, facilitating transactions, allocating funding to economic activities, and monitoring borrowers’ activities. Based on the GMM estimator, our empirical findings support that better-developed financial markets reduce inequality.

Partisan Politics in Portugal

Abstract This paper reviews the literature on partisan politics in Portugal at the national and sub-national levels. Starting with a description of the institutional setting, main parties and electoral results, the paper then delves into how partisanship matters for the policies implemented by incumbent governments. The available evidence indicates clear differences in several policy areas, such as the labour market, welfare, health, education, and gender issues, with Portuguese left- and right-wing governments acting in line with their ideological agendas. Voter behaviour and the emergence of the populist far-right in the Portuguese parliament are also analysed. (JEL codes: D04, D7, H4, and H7)

Gendered economic inequalities: a social policy perspective

Abstract This commentary addresses gender inequalities from a social policy perspective. It extends the analysis by Andrew et al. in this collection; focuses on lower incomes and social security; and recognizes both individual financial autonomy and interdependence as central. The commentary discusses labour market issues, including how to improve security and in-work progression for women in particular. Policy proposals are also made to limit the disruptions to women’s working lives by care for elderly or disabled people. More broadly, the commentary argues that a key question for any policy is whether it will help transform gender roles and relationships, to allow both sexes to fulfil their capabilities to the full. In addition, both male disadvantage and inequalities and economic dependence within households require more attention. Impact analysis should therefore explore not only distribution between households at the time but also potential effects on individual women and men over the life course. A balance is needed between moves towards economic independence and recognition of past, and continuing, inequalities. Policies can potentially tackle gender inequalities directly, and norms and values that may affect them indirectly. Proposals are put forward for changes in ‘family policy’, including towards second earners, parental leave and childcare. Finally, the commentary argues that the combination of a focus on autonomy and agency for all with awareness of our interdependence as a society and wider world means that gender issues must be central to the Deaton Review, not just for their own sake but also in a broader context.

An Agent-based Approach to Study Spatial Structure Effects on Estimated Distance Deterrence in Commuting

We provide an experimental design to study how estimates of the distance deterrence parameter in a standard doubly-constrained gravity model respond to different patterns of spatial structure. The design is defined as an agent-based simulation framework that simultaneously considers the response of commuting and migration to changes in the spatial structure, accounting for labor and housing market issues. The agents are equipped with a utility function and are expected to maximize their utilities corresponding to their disposable income net of commuting costs and house value. We study how the estimates of the distance deterrence parameter respond to where the central business district is located, to the clustering of local and basic sector jobs, to changes in the road transportation network, and to the compactness in the system of towns in the geography.

Times of Change: Young Adults' Perceptions on Labour Market Issues Before and During the Pandemic

Abstract Young individuals have consistently constituted a distinctive group within the labour market. They have been and continue to be among the vulnerable categories affected by the changes in the labour market. Thereby, in contrast to previous economic crises, the crisis generated by the COVID-19 pandemic has impacted them more significantly and within a considerably shorter time frame. Nevertheless, the impact has varied among individuals, with socio-demographic factors like gender, educational level, residential environment, occupation, and digitalization level playing a crucial role in the observed disparities. In this context, utilizing data from Eurobarometers 91.5/2019 and 93.1/2020, the study aims to analyse how young individuals perceive the economic situation and the labour market issues both before and during the COVID-19 pandemic, emphasizing the differences that have arisen as a consequence of this crisis. The paper will also investigate variations in socio-demographic variables. The findings will add to existing research, seeking to comprehend the effects of the crisis resulting from the COVID-19 pandemic on young people in the labour market.

Task shifting in Dutch nursing practice: A repeated cross-sectional analysis of nurses' experiences.

This study aims firstly to identify shifts in the execution of medical tasks by nurses in the past decade. Secondly, it aims to explore nurses' perspectives on task shifting: how they think task shifting affects the quality of care, the attractiveness of nursing practice and their collaboration with physicians. A quantitative repeated cross-sectional study. A nationwide survey was conducted among Dutch registered nurses (RNs) working in hospitals and home care, first in 2012 and again in 2022, with sample sizes of 359 and 362, respectively. Analyses were based on descriptive statistics and logistic and linear regressions. Between 2012 and 2022, there was a significant increase in the execution of only one medical task by nurses, namely prescribing over-the-counter medication. The majority reported in both years that task shifting has positive impact on their professional autonomy and the attractiveness of nursing practice. However, most nurses also reported that task shifting increased their workload (72.7% in 2022) could lead to conflicts in care teams (20.9% in 2022 compared to 14.7% in 2012) and may cause physicians to feel threatened (32.8% in 2022 and 29.9% in 2012). There were no significant changes in nurses' perception of the impact of task shifting on quality of care, the attractiveness of nursing practice and the nurse-physician relationship. There was an increase in the execution of prescribing over-the-counter-medication by nurses between 2012 and 2022. However, both in 2012 and in 2022, as the majority of nurses reported that task shifting increased their workload, there is reason to worry about this negative consequence of task shifting, e.g. with regard to labour market issues. Further research, also among the medical profession, is needed to better understand and address the implications of task shifting for the nursing profession. Implications for the nursing profession include potential scope expansion with complex tasks, attracting more individuals to nursing careers, although an eye must also be kept on what that means for the workload of nurses and the relationship with physicians. Nurse prescribing medicines was more executed in 2022 compared to 2012. Nurses had a predominantly positive perspective on task shifting, but still felt it can cause conflicts in care teams, high workload and physicians feeling threatened. These results can help during implementation of task shifting and in monitoring the perceived effects of task shifting among nurses. This study followed the STROBE reporting guideline for cross-sectional studies. No Patient or Public Contribution. This study focussed on the task shifting (perspectives) of nurses.

The Recent Drop in Female Labour-Force Participation in Jammu and Kashmir

The J&K economy will not reach its full potential unless the government and employers remove barriers to women's full labour-force participation in the labour market. Failure to address structural labor market issues, employment policy does more than limit women's career opportunities and aspirations for a better life. In Jammu and Kashmir context overall labor force participation is reported to be considerably low and has been on consistent decline. It has decreased by 7% from 62.09% in 1999-00 to 55.68% in 2017-18. The overall decline in labor force has been mainly attributed to the sharp decline in female labor force participation rate, which has registered almost 8% decline from 39.86% to 31.61% during 1999-00 to 2017-18. This decline is puzzling some and against the gender development goals like inclusive development, women empowerment etc. Women's participation barriers also act as brakes on the national economy, stifling growth. By adopting gender friendly policies and removing barriers to women's participation we can narrow down gender gap in participation and achieve stronger economic growth

COVID-19 pandemic induced wage theft: evidence from Sri Lankan migrant workers

ABSTRACTThe COVID-19 pandemic-related labour market issues and the rapid departure from countries of destination have heightened wage theft issues faced by migrant workers. This article provides scientific evidence on pandemic-induced wage theft experienced by migrant workers with the aim of minimising migrant workers’ exposure to similar cases of injustice in the future. The qualitative and quantitative analysis of data on migrant workers who returned to Sri Lanka during the pandemic provides evidence of the dimensions of wage theft. These dimensions include non-negotiable wage reductions and delays in payment of dues, non-payment of salary dues, non-provision of other dues and benefits, unconsented setting off of benefits, non-transparent calculation of benefits and their setting off against other goods and services provided by employer and holding migrant workers in situations of bonded labour. The findings also highlight that non-payment of due wages is more common among vulnerable migrant workers. The article suggests strategies to remedy wage theft issues faced by migrant workers by changing the behaviour of the migrant workers as well as by changing the behaviour the employers. Moreover, the punitive measures to offending employers need to be combined with remedial financial compensation measures to victimised migrant workers.

Application of text mining technology for comparative analysis of trends in the labor market

Object: The main purpose of the article is to analyze the employment of the population in the post-Soviet space in the context of world events to identify positive and negative trends in employment, as well as characteristic trajectories of development directions.Methods: Modern methods of word processing, in particular text mining, word cloud were used.Findings: The rapid development of modern technologies, Internet applications is accompanied by the generation of large amounts of data, the timely processing of which is today one of the main problems in various spheres of life - social, economic, political, and others. In solving this global problem, modern methods of processing text information, the so-called text mining technologies, come to the rescue. These tools allow to increase the efficiency of solving problems of different levels. The algorithms embedded in the text mining technology reveal the basic concepts of the text, the content and the relationship between them.The integration of modern text mining systems and the R-Studio programming language makes it possible to conduct research in the field of text analysis and processing. These systems, using statistical methods, process the rating of news documents, materials of scientific documents, blogs, tweets, emails, advertisements and other information. The main task of text analysis is to get a clear idea about the topics of interest, to extract important information. The analysis of text documents by text mining methods is carried out in several stages: information search, text preprocessing, extraction of the required information, application of text methods, analysis and interpretation of the obtained results. For the analysis of texts, articles in Russian in PDF format were selected, including information on trends in the labor market and employment for 1995–2020.Conclusions: over the past 20 years there have been significant changes in the labor market and employment. Text analysis technologies made it possible to reveal that during the study period, the labor market issues of unemployment, employment, employment transformation, the emergence of new forms of employment, social and gender problems, and others raised.

РИНОК ПРАЦІ ДЕРЕВООБРОБНОЇ ПРОМИСЛОВОСТІ В УКРАЇНІ: ВИКЛИКИ ВОЄННОГО ЧАСУ ТА ШЛЯХИ ПОДОЛАННЯ

This article conducts a comprehensive analysis of the labor market issues in the Ukrainian woodworking industry under the conditions of military conflict. The research is based on the systematization of available statistical data, observations of changes in economic and social processes in the industry, noting trends in employment and wages over the past six years. The identified labor market problems and challenges are thoroughly analyzed to develop strategic recommendations for overcoming the crisis consequences, restoring, and further developing the industry. The main task of the research is to systematize and analyze the dynamics of employment and wages in the woodworking industry from 2017 to 2022, as well as to identify the main challenges that have arisen for the industry due to the war. Special attention is paid to the personnel crisis, loss of logistics, problems with access to raw materials, and loss of customer base. The purpose of the article is a comprehensive review of the current state of the labor market in the Ukrainian woodworking industry and an analysis of various aspects of the labor market, namely employment, wages, and working conditions, to identify the main trends, challenges, and opportunities affecting the development of the Ukrainian woodworking industry. As a result of the research, it was found that after positive trends in employment growth in 2017–2019, there was a decrease in 2020, caused by the global pandemic. However, in 2021 the industry showed signs of recovery, which continued into 2022. Despite this, the war caused massive job losses, a personnel crisis, and a decrease in production activity. The main results of the research show that the average wage in the industry demonstrated steady growth from 2017 to 2022, indicating the efforts of employers to increase the competitiveness of the labor market. However, the war has made adjustments, and today the labor market experiences a shortage of skilled workers, requiring immediate action. The conclusions of the research emphasize the necessity of comprehensive state support for the woodworking industry, which should include financial assistance, reduction of tax burden, stimulation of investments, development of new markets, modernization of technology, and innovation. Attention is also focused on the importance of developing special programs to support employment and retraining of workers, as well as on the need to ensure the safety of workers and protect enterprises from hostile actions.

Pension reform and unemployment outcomes

ABSTRACT This article discusses the interactions among pension reform, labor market and inter-generational distribution issues through an overlapping general equilibrium approach with imperfect labor markets. Workers with different ages are imperfectly substitutable and wages do not clear labor markets. Increasing contribution rates has a strong negative effect on welfare and unemployment, particularly, for the youth. Contrary to the popular wisdom, postponing the retirement age does not entail an increase in youth unemployment. The change in incentives induces a substitution of old-age workers by young workers who constitute the cheapest labor category. However, this scenario substantially increases the implicit tax for older workers as well as for the youngest. Finally, the middle-aged are those that benefit the most from welfare increasing reforms.

Demographic change and economic growth: The role of natural resources in the MENA region

This paper analyses the conditional effect of demographic change on economic development in the MENA region. We employ fixed-effects panel analysis on data from 19 countries in the region and demonstrate a negative impact of natural rents on the relationship between the working-age population and economic growth. Once the critical level of approximately 16% of resource rents (as share in total GDP) is reached, a one-unit increase in working-age population appears to harm economic growth. Further tests show that this finding is mainly driven by the negative effects of resource rents on female labor force participation. However, other drivers are a large public sector, low private sector development and inefficient labor market policies and issues such as the “Dutch disease”. The main finding remains after robustness checks in the form of controlling for competing hypotheses. Policy makers are advised to encourage economic diversification, female employment and private sector development.

Analyses Of Demographic Changes, Labor Market Trends, And Challenges In Albania

Albania has seen significant political and socioeconomic changes in the last 30 years, owing mostly to its participation in democratization and the transition to an open market economy. The purpose of this study is to investigate demographic dynamics in Albania to better understand the country’s current population situation and the near future projection for the period 2025-2031. The relevance of analyzing this topic is to better understand actual demographic changes in Albania and to have a detailed projection of the situation in the near future. The article begins by analyzing important demographic changes and their effects on a country’s economy, specifically the labor market. Furthermore, we demonstrated the trajectory of demographic changes in Albania for various main demographic parameters such as births, deaths, natural increase, marriage, divorces, and numbers of foreigners in Albania, using data from the Institute of Statistics in Albania (INSTAT). The following are presented population projections for ten coming years. The changes that have happened in the labor market are presented here to better comprehend the effects and repercussions of these demographic changes. The descriptive analysis of the main demographic indicators shows that the population is rapidly declining, posing a serious problem with numerous consequences, particularly in the labor market, necessitating the implementation of immediate policies to mitigate this phenomenon and its consequences. It makes a technical contribution by employing an approach that allows for fresh estimations of the amount of internal migration, demographic changes, and labor market issues in Albania. The results of the research can be useful for policymakers to initiate social, fiscal, and incentive policies to mitigate the decline and aging of the population.

The effects of COVID-19 on employment, labor markets, and gender equality in Central America

Abstract This study considers the economic impact of coronavirus disease 2019 (COVID-19) on commercial enterprises in four Central American countries – El Salvador, Guatemala, Honduras, and Nicaragua. At the time of analysis, neither the pandemic nor its economic consequences had fully run their course. It is not, therefore, a definitive analysis, but it is important to try to draw important lessons as soon as possible. The main focus of the study was the initial impact on labor markets. The analysis was based on World Bank Enterprise Surveys undertaken before the outbreak of COVID-19 and follow-up surveys on the effects of the pandemic, also undertaken by the World Bank (Source: Enterprise Surveys, The World Bank, http://www.enterprisesurveys.org). These were combined with data on both government containment measures and rates of morbidity and mortality. The use of enterprise data to analyze labor market issues has some limitations but also many strengths. The data are useful for analyzing the consequences for gender equality in employment. Since the demand for labor is a derived demand, firm-level data provide a clear link to labor market effects. The pandemic has caused a significant loss in sales for many firms. This has created a loss of liquidity, which, in turn, has caused some firms to reduce employment, working hours, and wages. Government containment measures necessary to save lives, such as temporary workplace closures, have added to the burden for both firms and employees. The study starts by using the surveys to identify the important stylized facts. Although some issues are already well documented anecdotally through media reports, this method provides a more evidence-based approach. It also helps identify several issues, such as the impact on gender equality, which has received less journalistic attention. The study is further supported by a regression analysis (ordinary least squares and seemingly unrelated regression equations models) of several key outcomes (changes in sales, employment, the share of females in employment, and expectations of firm survival). A limitation of such an analysis at any enterprise level is heterogeneity and, consequently, a risk of sample selection bias. To provide robustness checks, we use a matching approach. The results suggest that a significant proportion of surviving firms are vulnerable to permanent closure. The ability of firms to retain labor depends on sales, which are affected by both the pandemic itself and the government containment measures. Only a small proportion of firms have received government support, and there is evidence that it could help both firm survival and the retention of labor. There is some doubt whether the four countries have the institutional capacity to provide effective support. If such doubts prove well founded, then support may need to be externally driven.

Labour in transition: A value-theoretical approach to renewable energy labour

This article analyses the conditions facing labour within the renewable energy (RE) accumulation strategies of electricity capital. We draw on value-theoretical perspectives developed within Marxist and feminist political economy to understand how labour is being reorganised within the transition to RE. We use value theory to identify key dimensions of RE labour across the exploitation of wage labour and the appropriation of labour-in-nature. We apply this lens to data from existing academic and policy studies on ‘employment’ and ‘environmental’ issues in RE value chains. We connect evidence on formal labour market issues such as employment numbers, job quality, and labour organising and state regulation, with research on the socio-ecological conditions of possibility for RE across materials, land and households. We argue that value theory reveals how distributive and sustainability outcomes of RE are a product of how labour is organised in the energy transition. We finish with considerations for union and social movement strategy regarding the scale and scope of green labour agendas within and beyond energy.

Mapping Social Policy in Economics Research: An Analysis of Core Journals

This study reviews the attention core economics journals have paid to the topic of social policy and economic performance based on 1,356 articles published between 1957 and 2020 using bibliometric analysis and data visualisation techniques. This approach allow us, based on the assessment of bibliometric data through co-citation, co-authorship and keywords networks analysis, to identify researchers, countries, institutions and research areas and trends offering useful information that facilitates future research and policy making. The emphasis is on the empirical literature given the theoretical controversies on the sign of the relationship and its usefulness for policy making. The most active country publishing in the core journals is the USA, with Sweden leading in terms of average citations. The top publishing authors and institutions are in the US, and China is the only developing country present. Keywords analysis reveals that the most often used terms reflect common methodological approaches. Retirement issues dominate the research agenda and suggest the need for more studies addressing the economic outcomes of other welfare programs, although recent studies put more emphasis on health, education and labour market issues. This analysis can help researchers to pinpoint relevant studies, identify dominant lines of enquiry and the more recently investigated themes and, ‘standing on the shoulders of giants’, suggest new approaches to study the overall nexus.

Editorial: Creative industries at the intersection between local agglomeration, national regulation, and global networks

Editorial: Creative industries at the intersection between local agglomeration, national regulation, and global networks

Employability Distress: Factors Affecting ICT Graduates’ Employability and Work Integration in the Workspace

There has been an ongoing debate on the subject of graduate unemployability in South Africa and the extent to which it has affected academic graduates. The growing consensus regarding intensifying levels of graduate employability distress today is explicitly supported theoretically in a number of research studies. This is despite the considerable efforts that have historically been made concerning the graduate labour force and their probable ramifications in the context of South Africa’s far-reaching labour market issues. A number of scholars both in the past and the present have identified several issues emerging from the heterogeneity of the quality of education, graduates’ capabilities and skills competencies, higher education institutions’ involvement in the industries and employers’ requirements for employment. This study aimed to explore the views that graduates conceive about employability and stress, reason for their unemployment and identify the factor that causes them to be unemployed and decisively suggest way to address these challenges. A quantitative approach and a questionnaire were used. A total of 195 questionnaires from graduates/students in the College of Business and Economics were recovered and usable. The findings reveal a paradox in the increased level of ICT graduate unemployment and skills mismatch and shortages. This has been attributed mostly to organisational changes which may have given rise to misalignment between the skills that graduates currently have and those that employers seek from graduates. Findings suggest that the kind of education obtained, graduates’ incapability to apply the skills received and work experience are factors hindering employability.

Introducing the Egypt Labor Market Panel Survey 2018

Abstract This paper introduces the 2018 wave of the Egypt Labor Market Panel Survey (ELMPS), previously fielded in 1998, 2006, and 2012. The ELMPS has already become the primary source of data for a large number of scholarly and policy studies on the labor market and human development issues in Egypt, and this new wave will further enhance its value as a critical data public good. This longitudinal survey is nationally representative, tracking both households and individuals over two decades. In this paper, we describe the key characteristics of the 2018 wave, including sampling, fielding, and questionnaire design. Changes in the collection of retrospective data starting in 2018 are discussed, and we demonstrate that they improved the data quality. We examine the patterns of attrition and present the construction of weights designed to correct for attrition, as well as to ensure that the sample remains nationally representative. We compare the ELMPS data with other Egyptian data sources, namely, the 2017 Census and various rounds of the Labor Force Survey (LFS). The data provide important new insights into Egypt's labor market, economy, and society.

ФОРМИРОВАНИЕ КАЧЕСТВЕННОГО ЧЕЛОВЕЧЕСКОГО КАПИТАЛА В РА В УСЛОВИЯХ ЦИФРОВОЙ ЭКОНОМИКИ

The purpose of the article is to put forward and substantiate that the current situation in Armenia does not create favorable conditions for the formation of high-quality human capital and for the transition to the “digital economy”, and, in this regard, to suggest ways to solve this issues. The article is aimed at studying the issues and analysis of investments in the field of education, as well as labor market trends and issues of transition to the "digital economy". Our task is to identify ways to form high-quality human capital and offer solutions to create conditions for the transition to the digital economy. Theoretical research methods, namely methods of analysis, synthesis and inference (deduction), as well as the method of comparison were used during the study. The research resulted in the conclusion that Armenia spends almost half as much on education as a percentage of GDP (2.5%) as the average in the OECD countries (5%). Also, based on the analysis of the solvency of domestic economies in Armenia and new trends in the labor market, it is concluded that the solvency of domestic economies in Armenia is quite low, and the state needs to increase funding for education to make it more accessible to the population, as well as to review the entire course of study to make it better in the digital economy...