Labour Market Regulation Research Articles

Economic growth and unemployment nexus: empirical test of Okun’s law in Somalia

This paper aims to empirically examine the relationship between GDP and unemployment in Somalia from 2000 to 2021. The study also estimates Okun's coefficient. To evaluate the association between the unemployment rate and economic growth, we employ the Hodrick–Prescott (HP) filter detrending technique, the Augmented Dickey–Fuller (ADF) test, ordinary least squares (OLS), and fully modified OLS. The findings of this study demonstrate that the series is stationary at the level. However, the results confirm a statistically insignificant negative relationship between unemployment and economic growth. Consequently, our findings suggest that Okun's law does not apply in Somalia. For robustness, we employ fully modified ordinary least squares (FMOLS), canonical cointegrating regression (CCR), and dynamic ordinary least squares (DOLS). Nevertheless, the relationship between the GDP gap and unemployment is not strong enough to be considered statistically significant, and other factors may also influence unemployment. Therefore, policies aimed at reducing unemployment should take into account various factors, including education and training, labor market regulations, and social protection measures.

Economic competitiveness and labour market regulation in developing economies

Economic competitiveness and labour market regulation in developing economies

Динамика специальных условий в профессиональных образовательных организациях

The article considers key issues of creating an inclusive environment in colleges and technical schools for young people with disabilities and disorders of psychophysical development. A detailed analysis of foreign and domestic modern studies in the field of vocational training of young people with disabilities is conducted. A diagnostic toolkit is described that allows assessing the level of readiness of professional educational organizations to implement inclusive practices. The diagnostic toolkit allows for a comprehensive assessment of the conditions for implementing inclusive processes at the socio-pedagogical, personal-activity, organizational-didactic levels from the perspective of different participants in the training of students with disabilities and deviations in psychophysical development. A study was conducted on the creation of special conditions in colleges and technical schools in different regions of the country, ensuring an increase in the demand for vocational education among applicants with disabilities and disorders of psychophysical development and their parents, as well as improving the quality of vocational training for this category of citizens. During the diagnostic procedures, a SWOT analysis of the college and technical school environment was carried out, which made it possible to identify the strengths and weaknesses of the organization of the inclusive environment of each professional educational organization participating in the study. The risks and opportunities for the development of inclusive professional education, including secondary education, were identified, taking into account the specifics of the regional labor market, the prospective development program of the subject of the Russian Federation. The conducted study, through cluster analysis, made it possible to identify the levels of creating special conditions for students with disabilities and psychophysical development disorders, to give their descriptive characteristics, and to determine the prospects for the development of an inclusive educational environment for each professional educational organization participating in this study.

Methodological Tools for Assessing Employment and Income of Rural Population under Unpredictable Conditions

Introduction. The modern Russian economy is facing serious problems in the field of labor resources, which leads to high unemployment and low wages. The development of effective solutions requires conducting evidence-based programs, including actions at the enterprise level, the regional labor market and the national level. The options offered to date by various researchers for assessing the employment and income of the rural population are characterized by an aspect and a lack of an integrated approach. Insufficient attention is paid to the integration of estimates, as well as the development of forecast values based on the expected dynamics of stochastic factors. The purpose of the study is to develop a methodology for assessing the employment of the rural population in the production of beekeeping products. Methods. The state and dynamics of the beekeeping industry development was analyzed on the example of the Perm Region. The study of indicators for assessing the employment level of the rural population included the effect of stochastic factors. The uncertainty influence was accounted by the use of correlation and regression analysis and a multidimensional model. The development of a population assessment methodology was based on the method of mathematical modeling. Results. The influence percentage of stochastic factors on changes in the employment level of the economically active population and the complex impact indicator of factors on the of employment level and incomes of the rural population of the Perm Territory were calculated with a forecast for 5 years. Conclusions. The proposed approach will make it possible to more effectively monitor the trends and dynamics of beekeeping development, which will further help to develop effective support measures for this industry.

Munkaerő-piaci mutatók elemzése az Észak-Alföld régióban 2018 és 2022-es években

In my study, I analyze the labor market indicators of the North Great Plain statistical region for the years 2018 and 2022 in order to map the regional labour market characteristics based on the indicators. One method of the analysis is the Beveridge curve. This complex analysis method graphically illustrates the evolution of the relationship between the unemployment rate and the proportion of vacant positions typical of the region under investigation. The results of the analysis can draw attention to possible problems in the labour market in the region. I examine the secondary statistical data in parallel with the available related literature.

Анализ и оценка уровня воспроизводства человеческого капитала на региональном уровне

The relevance of this study is due to the following circumstances. Successful human capital management is the basis for solving strategic tasks of regional development, since it is the availability of qualified and motivated personnel necessary for successful professional activity that ensures the effective development of the region's economy. It is also known that investments aimed at improving public health have a significant impact on the dynamics of changes in the gross regional product. In this regard, it seems necessary to assess the state of the processes of reproduction of human capital in the region on the example of such a subject of the Russian Federation as the Republic of Adygea. The analysis shows that the Republic of Adygea implements a regional policy aimed at ensuring the expanded reproduction of the territory's human capital. If there are a number of certain problems, it can be argued that it allows to ensure that the trained specialists meet the requirements imposed on them in the regional labor market.

Migrant women from Central Asian countries in the regional labor market: behavioral patterns

Migrant women from Central Asian countries in the regional labor market: behavioral patterns

Market Regulation, Cycles, and Growth Dynamics in a Monetary Union

AbstractWe build a two‐country currency union dynamic stochastic general equilibrium (DSGE) model with endogenous growth to assess the role of product market regulation (PMR) and labor market regulation (LMR) for growth and the adjustment to shocks. We show that with endogenous growth, there is no reason to expect real income convergence. Large shocks can lead to permanent changes of output and real exchange rates. Differences are exacerbated by different PMR and LMR. Less regulated economies have higher trend growth and recover faster from negative shocks. Results are consistent with higher inflation, lower employment, and disappointing total factor productivity (TFP) growth rates experienced in more regulated euro area members.

The formation of the tourism labour market in Spain, 1955–1973

AbstractThis paper studies the process of labour market formation in the tourism industry in Spain. Results show that tourism regions diverged in their capacity to attract local labour, a factor that led to different compositions of the workforce. In the most dynamic regions, circular migration became a key factor as a result of housing shortages, seasonality and labour policy. Tourism agents promoted these flows by different mechanisms such as recruitment at origin and temporary accommodation. Migration benefited growth of firms, natives' upward mobility and migrants' accumulation of capital. However, inequality in the regional labour market and host society increased.

NEET youth in central and eastern European countries: a panel model approach

ABSTRACT The purpose of the present study was to examine macro-determinants of the Not Engaged in Employment, Education, or Training Young People (NEET) in Central and Eastern European Countries. Data from 16 countries were collected from Eurostat –, UNESCO – and Word Bank Database 2013–2021 by using the panel data analysis method. Early school leaving rate, vocational education and training enrollment rate, unemployment rate, labour market regulation, gross domestic product, education expenditure and human development index were used for explaining the NEET in selected area. The relationship between variables was analyzed using the Panel Data Methods via Fixed-Effects Model. Therefore, according to the findings of Driscoll and Kraay Estimator – One-Way Fixed Effects Model, gross domestic product, labour market regulation, early school leaving rate, vocational education, and training enrollment rate variables have a high and statistically significant effect on NEET as the dependent variable, while unemployment rate and human development index have a marginal but significant effect on NEET. The findings of the present study showed associations between socio-economic and institutional conditions (labour market regulation) and the NEET rate at the country level and may indicate appropriate policy measures to promote a decrease in the NEET rate.

Application of the principle of individualization and personalization in the activity of the state employment service: administrative and legal aspect

The article examines and argues for the use of the principle of individualization and personalization in the work of the State Employment Service, which functions as an executive body. The author considers approaches to individualization and personalization as key elements of state policy regarding employment provision and labor market regulation. The author emphasizes that the analysis of the principles governing the activities of the State Employment Service is a fundamental and critically important aspect for the organization and effective functioning of this institution. The article analyzes the meaning and application of the principle of individualization and personalization in the activity of the State Employment Service in Ukraine from an administrative and legal perspective. The importance of establishing clear normative definitions of these principles is emphasized, as they determine the basic standards and norms for the functioning of state bodies. In particular, insufficient regulation can lead to differences in their understanding and application, complicating the planning and organization of activities. The author analyzes the international experience of applying the principle of “case management” and points out the need to introduce individually oriented support methods for each unemployed person in Ukraine. Particular emphasis is placed on innovations, including the reform of the organizational structure of the State Employment Service, which is aimed at increasing efficiency and customer focus. In particular, the introduction of a career counselor as an institution demonstrates the authority’s desire to provide an individual approach and personalized support to each client. An analysis of the career counselor’s functions confirms its focus on developing individual career plans for clients, taking into account their personal needs and capabilities. Manifestations of the application of the principle of individualization in the activities of the State Employment Service are considered, in particular, through drawing up an individual employment plan with a job seeker. The author emphasizes that this plan is a program of cooperation between the unemployed and a career counselor, aimed at organizing and ensuring the provision of social services in the field of employment. Special attention is paid to the expected positive impact of such an individual approach on the effectiveness of the job search and compliance with the needs of employers . It was concluded that in the context of the activity of the State Employment Service, the principle of individual approach and personalization is manifested in the expansion of the range of services for clients, taking into account their unique needs, level of professional training, motivation and readiness for mobility. This approach becomes an important component of the development strategy of the state employment service and contributes to increasing its effectiveness in achieving the goal of creating conditions for active employment of the population.

AUTOMATION RISK OF JOBS FOR NUTS II AND NUTS III REGIONS IN TÜRKİYE

The impact of digitalization varies across countries, while subregions within countries are also affected by this process at different levels. Especially for countries aiming to reduce regional disparities, it’s essential to assess the regional consequences of digitalization. Despite a growing body of literature on digitalization and its impact on the labour market, there is limited consideration of automation risk at the local level. This paper contributes to the field of regional studies by examining spatial variations in the effects of automation in Türkiye. It potentially offers insights for crafting localized interventions that can address the unique needs of different regions. By deploying the automation risk methodology developed by Frey and Osborne, automation risks are calculated for NUTS II and NUTS III regions and to determine the impact of digital technologies on the regional labour market. The primary finding reveals that 54 percent of employees in Türkiye are at high risk of job displacement due to digital transformation. Additionally, regions and cities with a strong focus on the manufacturing sector face above-average automation risks. This underscores the need for tailored, localized national policies instead of one-size-fits-all approach, emphasizing a bottom-up, place-based strategy.

The role of regulation and regional government quality for high-growth firms: the good, the bad and the ugly

ABSTRACT High-growth firms (HGFs) are important for job creation and productivity growth. We investigate the relationship between product and labour market regulations, as well as the quality of regional governments that implement these regulations, and the development of HGFs across European regions. Using data from Eurostat, the Organisation for Economic Co-operation and Development (OECD), World Economic Forum (WEF), and Gothenburg University, we show that both regulatory stringency and the quality of the regional government relate to the regional shares of HGFs. In particular, we find that the effect of labour and product market regulations is moderated by the quality of regional government. Depending on the quality of regional governments, regulations may have a ‘good, bad or ugly’ influence on the development of HGFs. Our findings contribute to the debate on the effects of regulations and offer important building blocks to develop tailored policy measures that may influence the development of HGFs in a region.

Exploring work ability, psychosocial job demands and resources of employees in low-skilled jobs: a German cross-sectional study

BackgroundExtending working lives due to labour market and pension regulations makes maintaining and promoting work ability necessary. The coronavirus pandemic has shown that employees in low-skilled jobs (no qualification required) contribute significantly to society and the economy. Research on these employees has been neglected in Germany for many decades despite demanding working conditions. Therefore, we investigate the relationship between low-skilled jobs and work ability. Moreover, we explore this relationship’s variation by psychosocial work demands and resources.MethodsWe use two waves of the German Study on Mental Health at Work (S-MGA). We calculate Ordinary-Least-Squares (OLS) regression models with pooled data (n = 6,050) to analyse the relationship between job requirement level and work ability. We also explore the contribution of job demands and resources on this relationship with interaction models. We use the Copenhagen Psychosocial Questionnaire (COPSOQ), to assess psychosocial work demands and resources.ResultsEmployees performing low-skilled jobs report significantly less work ability than those in medium- or high-skilled jobs. Interaction models show significantly greater work ability for employees in medium- and high-skilled jobs with high influence on their work (amount or tasks). Unexpectedly, employees in low-skilled jobs have lower work ability with more influence on their work. Furthermore, high role clarity, describing responsibility, authority and work goals, is associated with lower levels of work ability among employees in low-skilled jobs.ConclusionsThe moderating effect of role clarity on the work ability of employees in low-skilled jobs can possibly be attributed to skills mismatch and limited responsibility, as well as a lack of self-perceived collective purpose of the job. The moderation of the influence on work dimension supports results of previous studies. Too much job autonomy can have negative effects under certain circumstances and is therefore perceived as a job demand in some studies. Consequently, mechanisms concerning psychosocial work demands and resources must be investigated in further studies with different theoretical approaches. The imbalance of job demands and resources shows that employers should invest in preserving the work ability to prevent early exit from the labour market in an aging society.

Teleworking Dynamics in Spain: Pre and Post-Pandemic Insights

Significant advances in teleworking have received a lot of attention, particularly in the post-COVID-19 age. This research aims to shed light on the teleworking landscape in Spain, providing a comprehensive analysis from 2017 to 2020. Using data from the Spanish Labor Force Survey (SLFS), our study investigates the likelihood of teleworking, with a strong emphasis on individual characteristics. Our findings are varied. Notably, we discover a potential short-term increase in teleworking between 2017 and 2019, a phenomenon that assumes significant significance in the context of the global pandemic in 2020. We use probabilistic regressions that control for a variety of sociodemographic factors to identify the determinants of telework. Surprisingly, we discover that family composition, including the presence of children, has only a minor impact on the likelihood of teleworking. Furthermore, our research indicates a significant shift in gender dynamics, with women showing an increased proclivity to telework in the critical year 2020. Occupation emerges as a key factor, with highly skilled, educated workers in telework-friendly roles experiencing a significant increase in teleworking likelihood in 2020. Gender differences in teleworking, on the other hand, persist, implying more complex occupational dynamics such as contract type, sectoral differences, and work commitment. Our research differentiates three occupational categories: jobs that are naturally suited to teleworking, jobs that require physical presence, and jobs with untapped teleworking potential. We contribute valuable insights to the ongoing debate on remote work in a rapidly changing world by delving into the nuances of telework adoption. While our study offers valuable insights, it’s important to consider these limitations when interpreting findings and implications for telework legislation and practices. Telecommuting, like any labor market regulation, requires thorough scrutiny due to its dual nature.

Обеспечение профессиональными кадрами экономики региона на основе баланса потребностей бизнеса и возможностей системы образования

Introduction. The relevance of the study is caused by the challenges facing the vocational education system, the regional labor market, and the entrepreneurship system as a whole. Purpose of the study. The purpose of the study is to reveal the state of the secondary vocational education system in the Northwestern Federal District, to assess the structure of personnel training in the vocational education system. Methods. The research methodology is based on the continuity of the processes of dialectic development of the secondary vocational education system and the demand of the labor market, medium and small businesses in the current economic conditions. Based on the methods of structural-functional analysis and synthesis, it became possible to identify the main directions of training professional personnel. The object of the study is the system of secondary vocational education in the Northwestern Federal District. Results. The results of the study are a comprehensive analysis of the main characteristics of the secondary vocational education system in the Northwestern Federal District: the number of students, incl. for full-time education, for enlarged groups of training specialties, analysis of the quality of admission to professional educational programs in the context of vocational training groups in the regions of the North-Western Federal District, analysis of the state of the material and technical base of the vocational training system. Conclusions. The results of summarizing the directions of further research of the system of secondary voca-tional education made it possible to identify the leading directions of scientific discourse on the state of vocational training, to identify the leading structural characteristics of the coincidence of the state order and business needs, the organization of management in the system for improving the quality of implementation of educational programs implemented by institutions of the secondary vocational education system.

Income differentiation in Kazakhstan: an in-depth examination of its economic and social drivers

This study comprehensively identifies and quantitatively assesses the factors influencing income differentiation in Kazakhstan, demonstrating the multifaceted relationships between income inequality and various economic indicators. Utilizing quantitative research methodology, the investigation employs an Autoregressive Distributed Lag model to analyze the impact of GDP, real income, social aid, migration, and inflation on the Gini index of Kazakhstan from 2001 to 2022. Data was sourced from the Bureau of National Statistics, ensuring a robust and reliable foundation for the analysis. The investigation highlights the relevance of addressing income inequality in pursuing economic growth balanced with social justice, emphasizing global commitment to sustainable development goals. The results show that GDP growth and migration contribute to reducing income inequality, whereas increases in real income and, unexpectedly, social assistance are associated with higher inequality levels. Inflation's impact on income inequality was statistically insignificant, suggesting its effects may be ambiguous depending on other conditions. Overall, the findings advocate for developing multilevel strategies and policies aimed at reducing income inequality, encompassing economic measures, social investments, and improved labor market regulation to achieve more equitable and sustainable economic development in Kazakhstan.

THE IMPACT OF LABOUR MARKET REGULATIONS ON THE MACROECONOMIC PERFORMANCE OF TÜRKİYE: AN ARDL BOUNDS TEST APPROACH

The relationship between labour market regulations and macroeconomic performance is accepted as a complex and controversial issue in the economics literature. The research investigates the effect of labour market regulations on Türkiye’s macroeconomic performance during the period of 1980–2021, using the Labour Market Regulations Index (LMRI), which reflects the flexibility or rigidity of the labour market regulations and based on seven dimensions, and the Macroeconomic Performance Index (MPI) measured by the Magic Hypercube (MH) method, incorporating four aspects of economic performance which are economic growth, current account, inflation, and unemployment. The research employs the Autoregressive Distributed Lag (ARDL) model to examine the existence and direction of cointegration relationship between LMRI and MPI and finds out that there is a cointegration between them. Still, when checked in detail, it seems that labour market regulations do not have a statistically important long-term effect on Türkiye’s macroeconomic performance.

Informality and aggregate productivity: The case of Mexico

This paper develops and estimates a quantitative model to analyze the aggregate productivity consequences of informality in Mexico. While informality is typically viewed as prevailing solely among small firms, we use rich census data to document a high and rising share of large informal firms between 1998 and 2013. The model is quantified using the observed size and productivity distributions of both informal and formal firms. We use the model to assess the role of changes in labor market regulations, entry costs and enforcement in contributing to the rise in informality and decline in TFP in Mexico from 1998 to 2013. We find that the factors most important for the decline in aggregate productivity were not important drivers of the increase in informality, and conversely, the factors most important for the increase in informality had little impact on aggregate productivity. Regulatory changes during the 2000s contributed to over a third of the observed rise in the informal employment share, but with small aggregate productivity consequences. In contrast, rising entry costs account for a third of the decline in TFP from 1998 to 2013, but had little impact on informality.

How regions diversify into new jobs: from related industries or related occupations?

ABSTRACT This paper adds a multidimensional perspective to the study of related diversification. We examine how regions diversify into new jobs – defined as unique industry-occupation combinations – asking whether they do so from related industries or related occupations. We use linked employer-employee data for all labour market regions in Norway, covering the time period 2009–2014. Diversification into new jobs is more likely in the presence of related occupations and industries in a region. Furthermore, occupational and industrial relatedness have complementary effects on diversification. Occupational relatedness and its interaction with industrial relatedness are particularly important for diversification into more complex activities.