Labor Market Conditions Research Articles

Dropping out – Hungarian experiences at vocational training

The proportion of people with low school qualifications remains significant in Hungary, which not only makes it difficult for them to enter the current labour market but may also exclude them in the long term. For the increasing number of people with a low level of education, dropping out seems to be one of the most common reasons. Prevention as a determinative measure can provide answers to this problem. The study focuses on the issue of secondary school drop-out. The study results were based on the methodology of questionnaire surveys and semi-structured conversations. Based on the information obtained from the survey, this study continuously presents the results connected to drop-out conditions and compensatory measures. The study results highlight the significant effects of school and family, including previous school experiences, influence on the place of residence, the labour market status. The conclusions drawn from the results address the topic in a practical way and provide an opportunity to develop a possible action plan to prevent drop-outs.

On Labor Productivity in OECD Countries: Panel Data Modeling

Labor productivity is a key measure of economic performance and an essential factor of improving the living standards. High labor productivity growth rate can reflect increased use of capital, and/or a decrease in the employment of low-productivity workers. Thus, it can be said that labor productivity indicators reflect the effectiveness of labor utilization, labor cost, and revenue accumulation. This paper studies the impact of labor market conditions, economic integration, market size, and institutional quality on labor productivity in Organization for Economic Co-operation and Development (OECD) countries during the period from 2005 to 2017 by using panel data technique. The study finds that the random effects panel data model is the appropriate model to fit this data. The results suggest that average annual hours worked, labor force participation rate, and inflation rate have a negative significant impact on labor productivity in OECD countries. However, annual growth rate of GDP per capita, value added of industry, and control of corruption have a positive significant impact on labor productivity.

Globalisation, economic uncertainty and labour market regulations: Implications for the COVID-19 crisis.

This paper empirically analyses the effects of globalisation on labour market regulations. We also interact globalisation measures with economic uncertainty, and they serve as potential determinants of de jure labour market conditions. For this purpose, we consider new innovative globalisation and economic uncertainty indices (the Revisited KOF Globalisation and the World Uncertainty) in a panel dataset of 136 countries from 2000 to 2017. The findings indicate that globalisation promotes labour market flexibility, while economic uncertainty decreases it. We also find that the interaction of globalisation with economic uncertainty positively affects labour market flexibility. The findings are robust to various sensitivity analyses, that is, different estimation procedures and globalisation indicators, including various controls and excluding outliers.

Development and Validation of the Youth Career Development Competency Scale: A Study Based on Hong Kong Youth.

The challenging labor market conditions concomitant with economic globalization and advanced technology have made youth career development competency (YCDC)—young people’s ability to navigate transitions through education into productive and meaningful employment—especially important. The present study aims to develop a holistic instrument to measure YCDC in Hong Kong, which has rarely been investigated in past studies. The sample consisted of 682 youths aged 15–29 years (387 male, mean age = 19.5 years) in Hong Kong. Exploratory factor analysis of the 17-item YCDC scale resulted in four competence factors—engagement, self-understanding, career and pathway exploration, and planning and career management—which accounted for 78.95% of the total variance. The final confirmatory factor analysis results indicated good model fit (CFI = 0.96, TLI = 0.95, RMSEA = 0.06, 90% CI (0.05, 0.07), SRMR = 0.03) and good factor loadings (0.78–0.91). Moreover, the results demonstrated a satisfactory internal consistency of subscales (0.89–0.93). Subgroup consistency across subsamples categorized by gender, age, and years of residence in Hong Kong was also demonstrated. In addition, correlations between the YCDC scale and subscales with other career-related and psychosocial outcomes (i.e., career outcome expectancy, career adaptability, civic engagement, social contribution, and social integration) showed good concurrent validity. The results indicated that the YCDC scale is a valid and reliable tool for measuring career development competence among youth in the Hong Kong context. Its development sheds light on how career professionals can holistically assess young people’s navigation competence during their school-to-work transitions.

Regional borders, local unemployment, and life satisfaction

AbstractIn this paper, we provide novel evidence on the effect of local unemployment rate on life satisfaction. With this, we contribute to the expanding literature that aims to understand the role of the local labor market's conditions for individual well‐being. This information can be used to only analyze the impact of regional economic policies, as well as to understand individuals' behavior and reactions to policy changes. In concrete, we investigate how changes in local unemployment rate affect subjective well‐being in Germany, allowing for the presence of spatial spillovers and considering the role played by regional borders. The results indicate that higher unemployment in the own local area of residence has a negative effect on satisfaction. Similarly, individuals' happiness negatively correlates with the unemployment rate in contiguous local areas, but only if these areas are located in the same Federal State as the one where the individual lives. Heterogeneity analysis reveals that these negative effects of local unemployment rate are larger for individuals with stronger ties to the job market and less secure jobs.

Bridging the gap between critical algorithm studies and the social sciences

Since the mid-2000s platforms and platform work have greatly proliferated. Although also research on platforms and platforms has expanded, there seems to be a great gulf between IT- and social research on these issues. In this article, I show, using sociologist Maurizio Lazzarato’s concepts, that the technical infrastructure of the platform, in particular the algorithm, has a direct impact on work and the agency of the platform worker. From this perspective, it is possible to ask critical questions about platforms and platform work from a multidisciplinary viewpoint. Methodologically, an ethnographic approach that sees algorithms as part of culture, with its own institutions, impact on people and intersection with different contexts, could support co-operation between different disciplines. When such an approach is combined with insights from algorithm studies, research is also relevant for existing political questions regarding platform workers’ labour market status and the functioning of platform firms.

Boomers and Generation Z on campus: Expectations, goals, and experiences.

Compared to the other Anglo-American democracies, when they start job searches, Canadian post-secondary graduates likely confront more competition from similarly educated youth, and experience a relatively high unemployment rate. In addition, should they find work, there is no guarantee for graduates that it will be in their area of specialization. There is an added possibility that employment will be precarious. By comparison, in the mid-sixties, labour market conditions were more accommodating to university graduates. Are these different labour market conditions consistent with students' expectations, goals, and campus experiences prior to graduation? An answer to this question was found through a comparison of those entering Glendon College, York University, in 1963, and in 2013. The examination was based on surveys students completed in 1963, 1967, 2013, and 2017. Data from these sources was. supplemented by information obtained through interviews with students, archival materials, and by analyzing the contents of the student newspaper. Overall, the expectations of Glendon students in the 1960s, and 50 years later, were in keeping with respective favourable and unfavorable labour market conditions. For students' experiences this was not the case. Despite considerable changes in the labour market, the way in which students experienced their time on campus was comparable in the two eras.

Mental Health Status of the Population of a Hungarian Disadvantaged Region

Lifestyle and health culture significantly determines people’s health status. Several demographic studies have proved the correlation between disadvantaged social situation, unfavorable socio-economic status and health status. Deprivation and disadvantaged situation have become important, which should be treated as the root of difficulties on several fields since they have great impact on health behavior and -culture. Families living in lagging areas require special attention because of their social and economic backwardness and mental disadvantages. Childhood is an especially important period since skills learned before the age of 14 have a determining role in future life chances and adult health status: satisfactory psychosomatic development, loading capacity and the developing unfavorable habits influence adult health. As the part of the Creative Region program, our goal is to explore the mental health status of people living in the Hungarian Abaúj region by monitored data. 516 persons from 25 settlements and 7 primary schools of the region were included. We used the Beck Depression Inventory (filled under the age of 12) and the Spielberg State-Trait Anxiety Inventory (filled by all participants) by the help of measuring commissioners. Among children, a significant difference could be detected between genders (p=0.007). Body image seems to be a really important factor in youngsters’ life. Body weight (p=0.022) and physical exercises (p=0.02) significantly occur in the manifestation of depression symptoms in young people. The level of adult’s depression is influenced by the education level (p=0.00012), labour market status (p=0.003), alcohol consumption (p=0.007), subjective bad financial situation (p=0.022), sedentary lifestyle (p=0.001) and obesity (p=0.002). 5.5% of youngsters and 1.3% of adults are victims of domestic violence. It is important to highlight that negative future vision, unemployment and hopelessness cause anxiety and depression increasing by age, and it will manifest in endangering health behavior (inappropriate eating, sedimentary lifestyle, addictive disorders).

The Contraction of European Economic Distances through Sustainable Tourism in the Pre-Pandemic Period

Abstract The current importance of tourism leads us to analyze the extent to which the receipts from international tourism, and tourism in general, influence the capacity of European countries to reduce the development gaps of this sector in the European context and the extent to which the economic growth is sensitive to changes in tourist arrivals, tourism receipts and expenditures. Studying the GDP per capita and the receipts from international tourism for the period 1995-2017, we find that the European tourism has an important role in economy but secondary to capital stock and exports. The methodology used is a sensitivity analysis and a multiple linear regression with two models. The results show that, on short term, the gap in the European tourism sector is explained by the ability to attract income from the international tourism. The European growth of the tourism sector depends to a large extent on the amount of expenditures that tourists are making, on tourism receipts and, to a lesser extent, on tourist arrivals, but in all cases, the connection is a direct and positive one but, even so, the capital stock and the exports continue to play a very important role for the European economy. The analysis suggests that tourism is not a panacea for growth. On the contrary, it is one of the activities that stimulate growth along with investments, technology, or any other form of capital, together with exports and labor market conditions.

Decomposing the employment effects of investment subsidies

Most governments tackle the economic issues of underdeveloped areas by offering subsidies aimed at fostering economic activities and local employment. Localized policies put constraints on where businesses may locate to receive subsidies, but they generally place few restrictions on whom subsidized businesses must hire. Using administrative data on firms and workers in Italy, we adopt a multi-cutoff regression discontinuity design to empirically assess and decompose the employment effect of substantial incentives for the replacement or establishment of new capital. Our empirical strategy allows identifying the geographical origin and labor market status of new hires. The results show how the majority of recruits come from new entrants to the labor market, in particular, young people and students, while displacement effects are limited. It appears that subsidized companies tend to keep their most valuable staff and hire more qualified young people. Overall, we find only a modest spatial dispersion of the effects or a possible crowding-out of the local labor market.

Adult skills and labor market conditions during teenage years: cross-country evidence from international surveys

Abstract Do individuals finishing compulsory school in economic downturns end up with higher skills in adulthood than comparable individuals that finish compulsory school in economic upturns? This article answers this question by exploring data on country unemployment rates combined with individual data on educational attainment and adult skills in numeracy and literacy from the Program for the International Assessment of Adult Competencies. We find that completed education is countercyclical, and the same pattern is found for adult skills in numeracy and literacy. The results are fairly robust across different model specifications including fixed country and cohort effects and country-specific cohort trends. The results indicate that the labor market conditions at the time when young people make crucial educational decisions have long-lasting effect on skills and potential earnings in adulthood.

The Differences in Human Capital and Earnings in Indonesia dan Malaysia

This study examines the mobility of labor and capital in Indonesia and Malaysia as two neighboring countries that have similarities in the language, culture, and beliefs of the majority population. This study uses population-based data used in the analysis derived from various registers managed by the central statistical agency in both Indonesia and Malaysia. By matching unique personal identification codes across censuses and registers, the data provides detailed information about individuals, including their education, income, labor market status, and location of residence and place of work during the period 1992–2020. We found that the convergence of human capital intensity across functional labor market (LMR) areas, both in Indonesia and Malaysia, is not significant. The pattern of income disparities between regions in Indonesia and Malaysia is almost the same. Inequality in human capital between core economic and rural areas in the functional labor market persists in Indonesia as well as in Malaysia.

Do economic conditions affect climate change beliefs and support for climate action? Evidence from the US in the wake of the Great Recession

AbstractI show that climate skepticism increases with negative economic shocks and that the effects are concentrated among individuals in the labor force. I primarily employ a panel of US individuals in the period following the Great Recession, but also find consistent results with an alternative instrumental variables strategy. Among labor force participants, a one‐percentage point increase in the local unemployment rate leads to a three to five percentage point decrease in the probability of believing climate change is real and requires action. I conclude that support for climate change policies could depend on labor market conditions.

How land tenure and labor relations mediate charcoal’s environmental footprint in Zambia: Implications for sustainable energy transitions

• Land tenure and labor market conditions structure charcoal production’s environmental footprint in Zambia. • Charcoal is a one-off byproduct of agricultural conversion on customary and private lands, so from an unsustainable source. • Charcoal drives forest degradation in Forest Reserves (State Lands), with low regeneration potential. • Charcoal production creates a biomass loss of at least 50% from extraction of most tree species of all sizes (≥10 cm dbh). • Charcoal producers' effort responds to un(der)employment, specially during the season when agricultural labor demand wanes. Charcoal is the main cooking fuel in urban areas of sub-Saharan Africa and demand is expected to rise with urbanization. We explore the environmental footprint and socioeconomic drivers of charcoal production, using data from original field vegetation and producer surveys in a hotspot charcoal production area outside Lusaka, Zambia. We find that land tenure and labor market conditions structure the environmental footprint of charcoal production. Agricultural expansion is the main driver of forest conversion on customary and private (leasehold) lands where charcoal is a one-off byproduct of land-use change by farmers. By contrast, charcoal production drives forest degradation on State land, especially in Forest Reserves where agriculture is prohibited but the more intact forest is intensively harvested, largely by urban residents or, during the dry season, by nearby farmers lacking remunerative employment. Charcoal producers are remarkably varied, with sharp variation in net financial gains that are positively and significantly associated with volume produced. Strategies for improving the sustainability of charcoal production differ by land tenure type but require a combination of enhanced enforcement of existing land use restrictions, improved labor market conditions, greater support for sustainable agricultural intensification, devolution of forest management to more local level, and adoption of alternative cooking fuel sources by urban residents.

Рынок труда в условиях коронавирусной инфекции (на примере Приволжского федерального округа)

On the basis of comparative monitoring of the state of the labor market in the republics and regions of the Volga Federal District, the main criteria for employment and unemployment during the period of coronavirus infection COVID-19 are summarized. The general indicators for the regions during this period are the level of economic development, demographic situation, the share of labor migration, the number of labor force, the level of wages, and others. Measures to mitigate the situation on the labor market include: state support for enterprises implementing investment projects, stimulating employers to develop production and create jobs in all spheres of the economy, provision of social assistance to unemployed citizens on the basis of a social contract, assistance in finding a job, development of the national project “Small and Medium Business and Support for Individual Entrepreneurial Initiatives”, vocational training and additional vocational education, decrease in informal employment, widespread use of active policy measures in the labor market and others. This will make it possible to successfully implement, up to the level of 2019, such targets as an increase in the number of employed citizens, a decrease in the number of unemployed citizens and, on this basis, an increase in the number of employed citizens.

Work, motherhood and women’s affective well-being

This paper analyzes how motherhood and labor market status interact in their relationship to women’s affective well-being using Day Reconstruction Method data from the United Kingdom Time Use Survey 2014–2015. The dataset contains information on how much time respondents spent on their various daily activities as well as how much they enjoyed each episode. This information is aggregated into a measure of an individual’s affective well-being on a given day by calculating the mean of the reported enjoyments weighted by the duration of the respective episode. Results indicate a positive and significant correlation between motherhood and affective well-being. However, this relationship decreases in magnitude and even becomes insignificant in some specifications when controlling for labor market status. This could indicate that an increase in the likelihood of being in a labor market status associated with higher affective well-being mediates the positive relationship between motherhood and affective well-being. Women working part-time, self-employed women, homemakers and women on maternity leave are shown to have higher affective well-being than full-time employees. Furthermore, the time spent on and enjoyment experienced in employment related activities appears to be a key driver of many results in this study. Contrasting results in specifications using a measure of life satisfaction highlight the importance of considering affective as well as cognitive well-being.

Who takes the hit? Gender differences in employment outcomes after disasters

AbstractWe estimate the individual labor market outcomes in Indonesia using historical data to isolate the plausibly exogenous variation in local labor market conditions due to unexpected natural hazards. We find that men substitute labor away when there are more unanticipated disasters while women work more. These gender differences in employment elasticities are heterogeneous by land ownership and education. Results imply that policies targeting women, including more flexible workplace arrangements and incentives to finishing secondary school, may be necessary to allow women to substitute away from work when the gains from participation are low.

Care earnings in the United States and 24 European countries: The role of social policy and labour market institutions

AbstractCare occupations are gendered and remain relatively poorly paid, particularly in the United States. Prior research on the ‘care penalty’ primarily points to individual, relational, and market‐valuation factors in explaining the relative earnings of care workers. This study integrates these explanations with a comparative institutional perspective. Using higher‐quality data and methods than previous comparative research in the field—that is, harmonized micro‐data from the Current Population Survey and EU‐SILC from 2005 to 2016, country and year fixed effects models, and a counterfactual analysis—we find that national variance in labour market and welfare state institutions explains most of the difference in the relative earnings of reproductive care workers between the United States and European countries. Higher rates of collective bargaining coverage, stronger employment protection and welfare state spending contribute to higher relative earnings for reproductive care occupations, and lower relative earnings for high‐status nurturant care occupations. Differences in the relative earnings of care workers appear to be mostly a construct of social policy and labour market institutions rather than individual, relational, and market‐valuation factors.

The impact of education to the transition from unemployment to employment in Egypt

Purpose This paper aims to identify the level of contribution of different levels of education to remaining in unemployment as well as the transition from unemployment to employment in Egypt. Design/methodology/approach In this paper, transition probabilities matrix differentiated by gender, age groups, educational levels, marital status and place of residence based on worker flows across employment, unemployment and out of labor force states during the period 2012–2018 using Egypt Labor Market Panel Survey of 2018. The results point to the highly static nature of the Egyptian labor market. Employment and the out of labor force states are the least mobile among labor market states. This is because employment state is very desirable and the out of labor force is the largest labor market states, especially for females. Also, this study examines the impact of different educational levels separately on remaining in unemployment and transition from unemployment to employment state using eight binary logistic regression models. Findings The main results of transitions from unemployment to employment are relatively large for males, elder-age, uneducated workers as well as workers who are not married and urban residents, and the results of the logistic regression models consistent with the transition probabilities matrix results, except for few cases. Based on the above findings, there is enough evidence to accept the null hypothesis that no education has a positive significant impact to transition unemployed individuals from unemployment to employment, while less than intermediate as well as higher education have a negative significant impact to transition unemployed individuals from unemployment to employment. Originality/value This paper proposes to address the problem of the unemployment among highly educated which is much higher compared with illiterates and try to understand the impact of different levels of education separately on the transition from unemployment to employment, to help the policymakers to eradicate the gap between education and the demand of the labor market in Egypt.

The influence of migration on the labour market status in Western European countries

The influence of migration on the labour market status in Western European countries