Labor Market Conditions Research Articles

Worker flows and reallocation during the recovery

Exploiting very rich administrative data covering the period from January 2018 until December 2021, this study analyses the individual employment trajectories of a large random sample of Italian workers during the pandemic and the subsequent recovery, comparing them with similar individuals in previous years. To understand the heterogeneous impact of the crisis on the workforce, we split the sample based on workers’ labour market status in the first four months of 2020: (i) those continuously employed, (ii) those who lost their job, and (iii) those not employed (either new entrants or with previous work experience). While workers in the first group were more likely to keep their job during the pandemic than in the past, the others faced scarce employment prospects for a prolonged period. The probability to find a job decreased sharply for labour market entrants, amplifying pre-existing differences. Finally, we do not find evidence of significant cross-firm or cross-sectoral reallocation.

Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership

AbstractDo trade unions benefit from economic crises by attracting new members among workers concerned about job security? To address this question, we provide a comprehensive empirical investigation based on panel data from Germany, where workers decide individually on their membership. We analyse whether exogenously manipulated perceptions of job insecurity encourage individuals to join a trade union. Firm‐level workforce reductions serve as the first trigger of perceived job insecurity. Regional unemployment rates represent a second source of exogenous variation. Third, we propose a novel identification approach based on plant‐closure‐induced job losses of other workers in the same region. In each case, we exploit the longitudinal nature of the data to analyse the implications of changes in labour market conditions for changes in union membership using an instrumental variable approach. We find consistently that perceived job insecurity, as triggered by labour market turmoil, increases the likelihood of individual union membership. Analysing data on media coverage about downsizing in a complementary investigation, we add further evidence to the notion of trade unions as beneficiaries of labour market crises. Finally, we consider workers who lose their jobs and find no evidence of adverse effects on union membership among those affected directly by unemployment.

How Did Reskilling During the COVID-19 Pandemic Relate to Entrepreneurship and Optimism? Barriers, Opportunities, and Implications for Equity.

With shorter durations and fewer barriers to entry, reskilling programs may serve as vehicles for social mobility and equity, as well as tools for creating a more adaptive workforce and inclusive economy. Nevertheless, much of the limited large-scale research on these types of programs was conducted prior to the COVID-19 pandemic. Thus, given the social and economic disruptions spurred by the pandemic, our ability to understand the impact of these types of programs in recent labor market conditions is limited. We fill this gap by leveraging three waves of a longitudinal household financial survey collected across all 50 US states during the pandemic. Through descriptive and inferential methods, we explore the sociodemographic characteristics related to reskilling and associated motivations, facilitators, and barriers, as well as the relationships between reskilling and measures of social mobility. We find that reskilling is positively related to entrepreneurship and, for Black respondents, to optimism. Moreover, we find that reskilling is not merely a tool for upward social mobility, but also economic stability. However, our results demonstrate that reskilling opportunities are stratified across race/ethnicity, gender, and socioeconomic status through both formal and informal mechanisms. We close with a discussion of implications for policy and practice.

Risk of permanent social security benefits and overview of work participation among patients with obstructive sleep apnea

BackgroundIn this nationwide study, we used Danish population registries to estimate the excess risk of receiving permanent social security benefits for patients with obstructive sleep apnea (OSA) and to track their labour force participation. MethodsWe identified all Danish citizens receiving a diagnosis of OSA between 1995 and 2015. As a reference cohort, we randomly selected 10 citizens for each patient, matched by sex and birth year. Using the Fine and Gray competing risk regression, we estimated the cumulative incidences of receiving permanent social security benefits. Cox proportional hazard models were used to compare the risk of receiving permanent social security benefits in patients with OSA compared to the reference cohort. The Danish Rational Economic Agents' Model (DREAM) database was used to identify the labour market status prior to diagnosis, at time of diagnosis, and after diagnosis. ResultsWe identified 48,168 patients with OSA. A total of 12,413 (25.8%) patients with OSA had received permanent social security benefits, compared with 75,812 (15.7%) individuals in the reference cohort. Patients with OSA had a significantly increased risk of receiving permanent social security benefits when compared with the reference cohort (hazard ratio, 1.95; 95% CI, 1.88–2.02; and subhazard ratio, 1.92; 95% CI, 1.85–1.98). Work participation was lower for OSA patients compared to references at all time-points. ConclusionPatients with OSA have a moderately increased risk of receiving permanent social security benefits in Denmark after controlling for available confounders.

Do regional labor market conditions matter for temporary work disability duration? A multilevel analysis of workers' compensation claims in five Canadian provinces.

Research has shown how regionally varying labor market conditions are associated with differences in work disability duration. However, the majority of these studies have not used multilevel models to appropriately account for the hierarchical clustering of individuals nested within contextual units (e.g., regions). Studies that have used multilevel models have focused on privately insured workers or on disability not specifically caused by work-related injury or illness. Using claims data from five Canadian provincial workers' compensation systems, linear random-intercept models were used to estimate how much variance in temporary work disability duration ('work disability duration' for brevity) for work-related injuries and musculoskeletal disorders was due to differences between economic regions, what economic region-level labor market characteristics were associated with work disability duration, and what characteristics best explained economic region differences in work disability duration. Economic region characteristics, such as the unemployment rate and proportion of goods-producing employment, were independently associated with individual-level work disability duration. However, economic region variation only accounted for 1.5%-2% of total variation in work disability duration. The majority (71%) of economic region-level variation was explained by the provincial jurisdiction where the worker livedand was injured. Regional variation tended to be greater for female workers than males. The findings suggest that while regional labor market conditions matter for work disability duration, system-level differences in workers' compensation and health care are more important factors influencing work disability duration. Furthermore, while this study includes both temporary and permanent disability claims, the work disability duration measure only captures temporary disability.

ANALYSIS OF WAGE LEVELS DYNAMICS IN UKRAINE AND THE EU COUNTRIES AS A COMPONENT RESEARCH OF THE LABOUR MARKET CONDITIONS

At the present stage of deepening the processes of Ukraine's European integration, studies of the state and prospects of development of the labour markets of Ukraine and the European Union countries are becoming increasingly relevant, since in recent years, according to some indicators of the labour market functioning, there has been a process of their separation (structural divergence), which has disintegration potential. In particular, one of the structural factors of their divergence is the imbalance in the field of remuneration.The article is devoted to the study and analysis of the dynamics of wages in Ukraine and the European Union as one of the components of the labour market research process. To achieve this goal, the author used a number of general scientific andspecial research methods interrelated and consistently applied in the work: the method of abstraction, theoretical generalisation, analysis and synthesis, induction, graphical and analytical method (graphs of dynamic changes in indicators).Based on a review of the minimum wages in the European Union, it is determined that in 2022 the EU countries will be divided into three groups: with a national minimum wage of more than EUR 1,500 per month; with a national minimum wage above EUR 1,000 but below EUR 1,500 per month; and with a national minimum wage below EUR 1,000 per month.It is established that the EU labour market has gender and cross-country imbalances in remuneration, while the Ukrainian labour market has gender and regional imbalances. It is determined that there are a number of global problems in the labour market. In the area of remuneration, these include low levels of minimum and average wages, excessive differentiation in remuneration in different regions and sectors of the economy, high and growing wage arrears, lack of connection between wages and the level of employee's qualifications and performance, and the existence of shadow remuneration schemes. The labour market conditions in Ukraine are of a falling type, as they are characterised by an excess of demand over supply (a decrease in vacancies and an increase in the number of unemployed) and a decrease in market prices (the real wage index)

The Steppingstone Effect of Casual Employment in Australia: A Re‐Examination*

This study re‐examines the steppingstone effect of casual employment using data covering a much longer period than that used in Buddelmeyer and Wooden (Industrial Relations, 50(1), 109–30, 2011). For males the steppingstone effect found in this study is similar to that in Buddelmeyer and Wooden (Industrial Relations, 50(1), 109–30, 2011). Whereas Buddelmeyer and Wooden (Industrial Relations, 50(1), 109–30, 2011) find no steppingstone effect of casual employment for females, this study shows the effects occur to them. The positive result for females appears to be driven by weakened labour market conditions. This suggests that for females the steppingstone effect of casual employment could be sensitive to broad economic conditions.

The Contribution of Immigrants to Urban Economies: Exploring Citizens' Opinions in Athens, Greece

Migration processes pose important social problems and demand appropriate integration policies. With this perspective in mind, the present study investigates native residents’ opinion on the contribution of immigrants to urban economy in Athens, Greece, using a self-reported questionnaire submitted to a convenience sample of 446 native residents 18+ years old. In spite of the current economic crisis, mixed responses were recorded about the extent Greek government should allow new immigrants to come, live and work in the country. Conversely, citizens’ opinions were rather homogeneous and negative when speaking about the state benefits granted to immigrants. Respondents who believe that, in the near future, a high (and possibly increasing) number of immigrants should be allowed to live, and work in Greece, demonstrated to be fully aware of the importance of integration policies. By contrast, in line with the ‘secular’ role of families permeating the Greek society, married people were more inclined to refuse any policy of immigrants’ integration compared to single people. Future research should emphasize how institutions, national/local policies, and contextual aspects including ethnic networks, social capital, and labor market conditions, may influence immigrant integration in traditional, Mediterranean societies.

Exploring Strategies to Enhance TVET Engagement in Maldives to Improve Youth Career Development

Several aspects of the Maldives’ recent development pattern highlight imbalances between labor demand and supply. Public sector jobs are predominantly in the civil service with the rapid expansion of cadres in the 1990s and 2000s. However, with the increasing standard of living over time, the labor market has become more challenging for Maldivians in general. Increasing educational attainment among the younger generation and expectations have coincided/collided with the rapid growth in low-skill service jobs associated with tourism and construction, leading to a mismatch in skills supply and demand.Despite the high levels of growth and labor market conditions in public investments, tourism, fisheries and non-tradable tourism related activities, important challenges remain for young Maldivians. TVET is perceived as second-class option to most of the youth. Many reasons that cloaked these issues such as lack of awareness, publicity and career readiness. This research seeks to identify the issue and challenges and strategies that can be implemented to enhance career development among Maldivian youth on TVET. Mixed method has been adapted in this research by employing questionnaires and conducting interviews. 200 respondents participated in the survey and five experts were involved in the interviews. Data were analysed quantitatively for survey and thematic analysis for the qualitative data. According to the findings, a majority of respondents (81.7%) have heard of Technical and Vocational Education and Training (TVET), but less than half (45.2%) understand that it can lead to better employment opportunities. Experts have identified seven strategies to improve TVET for youth career development, including promoting it through electronic media, launching a national campaign, strengthening partnerships with industry, branding and holding skills competitions. This information is valuable for policymakers and stakeholders in the Maldives as they work to design and implement effective and coordinated government support for TVET.

Labour market status and mortality risk: The Finnmark cohort study 1987-2017.

The aim of this study was to investigate the age-varying mortality risk associated with different labour market status categories. Data from a population-based survey carried out among adults aged 30-62 years in Finnmark in 1987/1988 were linked to the Norwegian Cause of Death Registry to identify all deaths occurring by December 2017. We used flexible parametric survival models to examine the age-varying associations between different labour market status categories (no paid work/homemaker, part-time work, full-time work, unemployment benefits, sick leave/rehabilitation allowance, and disability pension) and mortality. Men with part-time work, unemployment benefits, sick leave/rehabilitation allowance, or disability pension had an increased mortality risk compared with men with full-time work; however, these findings were restricted to ages below 60-70 years, varying with labour market status category. For women, excess mortality was linked to disability pension in the younger age groups; in older age groups it was linked to the labour market status category no paid work/homemaker. Non-employment was associated with low education level compared with full-time employment. The study showed increased mortality risk for some non-employment categories, with decreasing relative risk with age. Our findings suggest that the increased mortality risk is partly explained by health, pre-existing illnesses, and health-related behaviour and partly by other factors, such as social network and economic factors.

Economic Booms and Recidivism

ObjectivesThis paper examines the impact of local economic activity on criminal behavior. We build on existing research by relaxing the identification assumptions required for causal inference, and estimate the impact of local economic activity on recidivism.MethodsWe use the fracking boom as a source of credibly exogenous variation in the economic conditions into which incarcerated people are released. We replicate and extend existing instrumental variables analyses of fracking on how many released offenders return to state prison seperately from aggregate crime and arrests.ResultsOur instrumental variables estimates imply that a ten thousand dollar increase in the value of per capita production is associated with a 2.8% reduction in the 1-year recidivism of ex-offenders at the county level. Improved labor market conditions, specifically an increase in wages for young adults, may explain a non-negligible fraction of the reduction in recidivism associated with economic booms. In contrast, we replicate existing work finding that fracking increased aggregate measures of crime and arrests.ConclusionIncreased economic opportunity appears to have a different impact of overall crime than on recidivism. This suggests that the relationship between economic opportunity and offending may be conditioned by local social ties. Further research examining how social connections and labor markets affect individual criminal behavior is needed.

Between leading and lagging

In this paper, we analyse the interregional migration of Spanish-born young adults by educational attainment and explore unemployment and over-education in the labour market among internal migrants and sedentary individuals with a university degree. We used register data of population movements from 2000 to 2018 to analyse internal migration patterns and the Labour Force Survey to study the educational attainment of migrants, as well as unemployment rates and over-education among college graduates. Our results indicate a regional polarisation after the economic crisis. Peripheral regions in the interior of Spain have been affected by an increasing exodus of university graduates, in addition to high levels of unemployment and over-education among individuals with a university degree who remain at origin. However, peripheral regions in the north-west and south of Spain have been less affected by out-migration, even though the south has shown higher levels of unemployment for college graduates. The central region of Madrid has emerged as the main destination for university graduates, with a large capacity to employ populations with university education from other regions. Semi-central regions of the Mediterranean and north-east of Spain retain local college graduates and exhibit good labour market conditions among residents with a university degree, but they are not destinations of individuals with university education from other regions.

Female labor market conditions and gender gaps in aspirations

Aspirations for the future can influence investments made today, and gender gaps in aspirations can perpetuate gender gaps in outcomes. In this paper, we explore how the local labor market affects gender gaps in aspirations. Using a national longitudinal survey from Japan, we begin by documenting large gender differences in adolescents’ aspirations with respect to education, marriage, and fertility, as well as parental aspirations for their child’s education. We then show that these gender gaps – specifically, boys aiming for higher educational attainment as well as later marriage and fertility – are significantly smaller in municipalities with higher female employment. Consistent with this, we also find that female employment is associated with higher parental investments in girls relative to boys. We detect similar patterns when examining realized outcomes at age 19.

Pro‐market institutions and labor market outcomes: A panel‐data analysis of U.S. metropolitan areas

AbstractWe expand previous U.S. state‐level research on the relationship between pro‐market institutions and labor market outcomes by examining this relationship at the U.S. metropolitan‐area level. Using panel data for 1992–2012 in a fixed‐effects model, we investigate the effect of pro‐market institutions on the unemployment rate, labor force participation rate, employment‐population ratio, and employment growth across 366 U.S. metropolitan areas. The results indicate that pro‐market institutions are associated with a lower unemployment rate, higher employment‐population ratio, and faster employment growth. These results suggest that local‐area policies are important for achieving favorable labor market conditions at the local level.

Escaping into a master's degree in times of crisis? Master's degree applications and enrolment over the business cycle

The consequences of graduating in a recession could be severe and long-lasting. Bachelor's graduates can, however, avoid entering the labour market by continuing their education. Using a Norwegian dataset containing information on all graduates and their applications to and enrolment in master's degree programmes over a 15-year period, we find that a one percentage point increase in the field-specific unemployment rate results in a 6.5 percentage points increase in applications and a 3.9 percentage points increase in enrolment. Moreover, using a survey of the 2020 bachelor's graduates cohort, that is, the Covid-19 cohort, we find evidence indicating that those pushed into a master's degree by conditions in the labour market differ substantially from those whose decision to enrol in a master's degree is not driven by labour market conditions.

청년근로자의 노동시장 지위변동 유형이 시간당 임금 및 직무만족도에 미치는 영향

Background/Objectives: The purpose of this study is to track down the change of labor market status of young workers for a long period of time of 11 years to identify the characteristics of the best and poorest quality jobs using both objective indicator (hourly wages) and subjective indicator(job satisfaction).
 Methods: For this study, 1,351 young workers aged 20 to 39 in 2009 were analyzed using the combined individual data from the 12th wave (2009) to the 22nd wave (2019) of the Korean Labor and Income Panel Study (KLIPS) collected by the Korea Labor Institute. The analysis was conducted with frequency, ANOVA, Pearson’s correlation and Multiple regression analysis using the SPSS 22.0 program.
 Results: Hourly wages were higher in both types of the primary market group than ‘the trapped in the secondary market type’, but only the primary market continuation type showed higher job satisfaction than ‘the trapped in the secondary market type’. This study is theoretically and empirically meaningful in that it verified the differences in hourly wages and job satisfaction by type of labor market status change even in workers who have successfully maintained employment for 11 years, as well as in that it found out the effects of the privileges of the best quality job holders and the unfair penalties of the poorest quality job holders.
 Conclusion/Implications: Based on the above results, it is clearly obvious that integrated interventions in employment and social welfare are required before workers enter the labor market. In addition, strong policy measures must be implemented in order to both alleviate and break the gaps in labor market status of young workers.

Consumer Time Budgets and Grocery Shopping Behavior

We study whether and how the availability of incremental time associated with retirement and unemployment affects the types of products households buy. For this, we develop a new theoretical model of the composition and size of the grocery shopping basket subject to money and time constraints. We construct a novel household panel data set that combines purchase records for grocery goods with information on labor market status and other demographics. We use the data to document that, in line with predictions from the model, consumers buy more varieties and generally shift their spending into products that take more time to turn them into consumption experiences. This paper was accepted by Eric Anderson, marketing. Funding: B. J. Bronnenberg and Y. Xu acknowledge financial support from the Netherlands Foundation for Scientific Research (NWO) under a Vici grant. Supplemental Material: The online appendices are available at https://doi.org/10.1287/mnsc.2023.4763 .

Drivers of Exports Competitiveness in Manufacturing: A Comparison between China and Germany

In recent years, globalization has brought significant development opportunities to various economies worldwide, including influences for export-oriented economies such as China and Germany. This paper examines the export competitiveness of China and Germany in terms of labor market conditions and non-price factors, as well as the impact of China as an emerging economy on German manufacturing export competitiveness. Labor costs, productivity, and market reforms are considered to analyze labor market competitiveness. Non-price competitiveness is examined through explorations of product innovation, quality, and high-tech products. This article found that China's manufacturing export advantage is primarily due to the low labor cost of its workers, and FDI contributes to China's technological and high-tech export advancements. The competitiveness of German exports is attributed to the labor market reforms in Germany and the innovation and high quality of its products. On the other hand, wage inequalities exist in both China's and Germany's manufacturing industries. The study also finds that while emerging economic giant China has gained significant export market share, Germany can remain competitive.

Social protection in times of plague and beyond

Introduction: As historically verified, countries with comprehensive, well designed social protection systems in place are better prepared to cope with large scale catastrophes of all kinds, always in such situation there is still a need for government interventions other than social protection and larger scale discretionary social protection or related interventions.Objective: The article presents the actions of countries to minimize the negative social effects of the COVID-19 coronavirus pandemic. The text is an attempt to answer how social security systems should be adapted to aforementioned crisis?Materials and methods: The text uses research methods such as: literature criticism and statistical analysis of data and revision of implemented state intervention policies based on reports of Organisation for Economic Cooperation and Development, International Labour Organizaton, European Foundation for the Improvement of Living and Working Conditions and International Monetary Fund.Results: 1) For social security institutions of key importance to ensure continuity of operations of all services of contributory social insurance as well of social assistance - was to ensure continuous payment of all benefits due and quick response to the new entitlement emerging. It is also necessary to ensure that all citizens are fully insured, regardless of the form of contract under which they perform work.2) In many countries, special emergency measures that extended coverage and increased benefits were taken by governments without clearly identifying the sources of funding and very often burdening social security funds with non-statutory expenses and affecting their long-term financial sustainability.3) In the longer run, there is a need to ensure universal health care coverage of the adequate quality, there is a need to develop policies which will secure at least minimum income security to all independently of their labour market status, forms of employment, sex, ethnicity or nationality.

Independent and Joined Association between Socioeconomic Indicators and Pediatric Obesity in Spain: The PASOS Study.

Childhood obesity is a public health problem worldwide. An important determinant of child and adolescent obesity is socioeconomic status (SES). However, the magnitude of the impact of different SES indicators on pediatric obesity on the Spanish population scale is unclear. The aim of this study was to assess the association between three SES indicators and obesity in a nationwide, representative sample of Spanish children and adolescents. A total of 2791 boys and girls aged 8 to 16 years old were included. Their weight, height, and waist circumference were measured. SES was assessed using two parent/legal guardian self-reported indicators (educational level -University/non-University- and labor market status -Employed/Unemployed-). As a third SES indicator, the annual mean income per person was obtained from the census section where the participating schools were located (≥12.731€/<12.731€). The prevalence of obesity, severe obesity, and abdominal obesity was 11.5%, 1.4%, and 22.3%, respectively. Logistic regression models showed an inverse association of both education and labor market status with obesity, severe obesity, and abdominal obesity (all p < 0.001). Income was also inversely associated with obesity (p < 0.01) and abdominal obesity (p < 0.001). Finally, the highest composite SES category (University/Employed/≥12.731€ n = 517) showed a robust and inverse association with obesity (OR = 0.28; 95% CI: 0.16-0.48), severe obesity (OR = 0.20; 95% CI: 0.05-0.81), and abdominal obesity (OR = 0.36; 95% CI: 0.23-0.54) in comparison with the lowest composite SES category (Less than University/Unemployed/<12.731€; n = 164). No significant interaction between composite SES categories and age and gender was found. SES is strongly associated with pediatric obesity in Spain.