Local Labor Market Research Articles

Local labour market segmentation and migrant workers’ experiences: The case of the hotel industry in Venice

Using Venice as a case study, this article seeks to analyse the experience of migrant workers in the hotel industry through a theoretical engagement with the local labour market segmentation approach. The global hotel industry relies on large numbers of migrant workers, who are often in their first job in the host context, as a solution to the problem of cyclical staff shortages. Previous studies have found that low barriers to entry into the sector and high staff turnover are the underlying reasons for this relationship. They have also shown that the same characteristics that make the hotel sector attractive to migrant workers also lead them to leave the industry shortly after entering it. However, this article reveals significant stability in the careers of migrants employed in Venetian hotels as well as heterogeneity in their individual experiences. Through identifying and analysing the factors underpinning the trajectories of these workers, the article emphasises the importance of local characteristics of production, consumption, institutional and welfare regulation patterns, workers’ social stratifications and strategies of social reproduction in shaping the relation between migrant workers and the local hotel industry.

Macroeconomic fluctuations and individual use of psychotropic medications: evidence from Swedish administrative data.

A growing literature finds that adult mental health worsens during economic downturns. Current insights on the relationship between macroeconomic fluctuations and psychotropic medication are based on self-reported information or aggregate measures on prescriptions. This study assesses the relationship between local macroeconomic conditions and individual use of psychotropic medication as reported in administrative registers. We use local information on unemployment linked to individual-level longitudinal data on detailed psychotropic drug consumption from administrative registers, for individuals in working age (20-65) in Sweden 2006-13. Any psychotropic medication uptake and the related number of redeemed prescriptions are the primary outcomes. Mortality is considered a secondary outcome. Among young men (aged 20-44) and older women (aged 45-65), we find reduced use of psychotropic medication (2-4% compared to the mean) when the local labor market conditions deteriorate. The relationship is driven by reduced use of antidepressants. The same age-gender groups experience a significantly higher risk of mortality in bad times. This study shows that economic downturns may not only put strain on individuals' mental health but also on their access to psychopharmaceutic treatments.

Mediating role of human capital in enhancing ESG practices in manufacturing for regional labour market development

Improvement of human capital opportunities is as a paramount outcome resulting from the implementation of Environmental, Social, and Corporate Governance (ESG) practices. Article aims to examine the pivotal role played by human capital as an intermediary factor explaining the impacts of ESG practices within firms on the regional labour market. Research methodology employs the Partial Least Squares Structural Equation Modelling (PLS SEM) technique. This approach is founded on data collected from a survey of 362 employees affiliated with manufacturing companies situated in the industrially advanced Ural region of Russia. The findings unveiled that ESG practices do not have a significant direct influence on the social and cultural development of the region. Instead, they contribute to the development of human capital, thereby enhancing opportunities on the local labour market. This manifests through the creation of stable employment opportunities, engaging and diverse work environments, and an elevation in career prospects. The implications of these findings extend to the practical realm, offering insights for the formulation and execution of regional human capital management strategies within Russian enterprises. Additionally, these findings can inform the development of ESG practices that wield a positive influence on the local labour market, thereby fostering a more sustainable and prosperous future for the region.

Global Value Chains, Industrial Upgrading, and Local Labor Markets

Global Value Chains, Industrial Upgrading, and Local Labor Markets

The spread of the COVID-19 infection in Russia’s Baltic macro-region: internal differences

This article explores the spread of the Covid-19 infection in Russia’s Baltic macro-region. The monthly excess mortality rate in the Baltic region is analysed along with regional and municipal Covid-19 response acts to identify regional features affecting the spread of the disease. The spatial characteristics of Russia’s Baltic regions, germane to the propagation of Covid-19, were distinguished by examining selected social and economic statistical indicators. Based on the space of places/space of flows dichotomy, Russia’s Baltic regions can be divided into three spaces: 1) St. Petersburg, the Leningrad and Kaliningrad regions (dominated by spaces of flows; highly permeable space); 2) the Republic of Karelia and the Murmansk region (the key factors are rotational employment and the introduction of the virus from without); 3) the Novgorod and Pskov regions (lowly permeable spaces of places; the central role of local foci of the disease). The principal risk factor for the space of flows is the rapid spread of Covid-19 along transport arteries, whilst, within the space of places, the coronavirus spreads through spatial diffusion from isolated foci along short radii. In the former case, local authorities counteracted spatial diffusion by restricting movement in the local labour market; in the latter, by limiting travel between the centre and the periphery. The traditional ideas about positive (openness, centrality) and negative (closedness, peripherality) characteristics of space are reversed in the context of the pandemic: periphery gains the benefit of natural protection from the pandemic, whilst centres become acutely vulnerable.

Charged Up? Distributional Impacts of Green Energy on Local Labor Markets

Charged Up? Distributional Impacts of Green Energy on Local Labor Markets

Trade Liberalization and Local Labor Markets in Morocco

Trade Liberalization and Local Labor Markets in Morocco

Effects of E-Commerce on Local Labor Markets

Effects of E-Commerce on Local Labor Markets

Juggling Online Gigs with Offline Jobs: How Local Labour Markets Are Driving the Growth in Internet and Platform Work

Juggling Online Gigs with Offline Jobs: How Local Labour Markets Are Driving the Growth in Internet and Platform Work

Exploring Local Labor Markets and Knowledge Spillover from a Spatial Perspective

Relevance. Cities serve as vital hubs for socioeconomic activities, fostering convergence in local labor markets characterized by high productivity, premium wages, and knowledge spillover. Jakarta Metropolitan, as Indonesia's economic center, embodies these advantages, prompting the need for a spatial investigation of their regional association. Research Objective. This study examines the unique attributes of the labor market in the Jakarta Metropolitan Area. The analysis encompasses anomalies such as the impact of premium wages on local labor productivity and the influence of education levels, as a proxy for knowledge spillover, on urban labor productivity. Data and Methods. Utilizing microdata from Sakernas and macrodata from BPS for 2017-2019, this study offers a comprehensive analysis of the Jakarta Metropolitan Area. By synthesizing cross-level data, the intricate interplay between productivity, wages, and area size becomes evident, particularly the tendency for skilled individuals to gravitate toward larger urban centers. Employing spatial regression, the analysis takes into account local characteristics in regions. Results. Density and education have a positive correlation, while the number of holders of bachelor's degrees has a surprisingly negative impact on productivity. Notably, higher aggregate education levels enhance regional productivity throughout the Jakarta Metropolitan Area, except for highly educated individuals. The level of education influences the minimum wage in a region, driven by spatial disparities in the educational infrastructure and quality. The number of educated people also influences wages in and across regions, prompting migration to regions with higher salaries. Conclusions. By integrating microdata and macrodata and employing spatial regression techniques, this study shows the connection between education, productivity, and regional dynamics, particularly in the Jakarta Metropolitan Area. These findings challenge the assumption that possessing a high level of education guarantees higher productivity and remuneration, demonstrating the need for education reforms that align with labor market demands and bolster the economy.

The Effect of Immigration Restrictions on Local Labor Markets: Lessons from the 1920s Border Closure

In the 1920s, the United States substantially reduced immigration by imposing country-specific entry quotas. We compare local labor markets differentially exposed to the quotas due to variation in the national-origin mix of their immigrant population. US-born workers in areas losing immigrants did not benefit relative to workers in less exposed areas. Instead, in urban areas, European immigrants were replaced with internal migrants and immigrants from Mexico and Canada. By contrast, farmers shifted toward capital-intensive agriculture, and the immigrant-intensive mining industry contracted. These differences highlight the uneven effects of the quota system at the local level. (JEL J15, J18, J31, K37, N32, N42, R23)

Local Labor Market Effects of Mergers and Acquisitions in Developing Countries: Evidence from Brazil

Local Labor Market Effects of Mergers and Acquisitions in Developing Countries: Evidence from Brazil

Transitory Shocks to Local Labor Market Opportunities and College Attainment

Transitory Shocks to Local Labor Market Opportunities and College Attainment

ФАКТОРНАЯ И ЭКОНОМИКОМАТЕМАТИЧЕСКАЯ ОЦЕНКА ТРУДОВОГО ПОТЕНЦИАЛА СЕЛЬСКИХ ТЕРРИТОРИЙ

The article presents a factor analysis of the development of the local labor market, taking into account the labor potential of rural pensioners. Issues are raised about the further development of personal subsidiary plots and the use of economic and mathematical tools to assess labor market tensions, take into account professional skills and the quality of jobs. The purpose of the study was to assess the labor potential of rural pensioners and determine their status in the labor market. The developed model for assessing the potential of rural pensioners allows us to predict the costs of physical labor, build a motivation system and justify new types of business (quail breeding). Based on published material and the results of expeditionary research, a portrait of the economic potential of retirees was compiled, and professional routes for continuing their work activity were proposed.

Estimating the Local Labor Market Effects of Hurricanes

Estimating the Local Labor Market Effects of Hurricanes

Local Labor Market Frictions and Platform-Dependent Entrepreneurship

Local Labor Market Frictions and Platform-Dependent Entrepreneurship

Impact of Migration on Non-Migrant School Completion Rates and Enrolment in South Africa

South Africa struggles with low secondary school completion rates and this has a negative effect on poverty and inequality. In this study, we examine the relationship between internal migration (international migrants were excluded) and non-migrant educational outcomes (secondary school enrolment and completion rates) in South Africa between 1996 and 2011. We use census data for the years 1996, 2001 and 2011 (at the district and municipal levels) in several linear probability regression models that include the First Difference (FD) and System Generalised Method of Moments (GMM-SYS) with instrumental variables. The 2011 census is the latest available in South Africa now. We find that internal migrants have a positive effect on both enrolment and completion rates of non-migrants. These results vary in intensity depending on the level of education of both internal migrant and non-migrant household heads. These results have implications for the local labour market and for income inequality in South Africa; internal migrants provide positive peer effects that contribute to raising non-migration enrolment and completion. Internal migrants also provide job market competition which influences non-migrants to complete secondary schooling. There is scant empirical evidence on the impact of internal migration on education outcomes in African countries, especially in South Africa. Our paper provides evidence from a country with a history of persistent internal migration. Most prior research has focused on the relationship between immigration and education outcomes in the developed world. We recommend that government improves secondary school quality in rural and urban areas and increase study loans for students at tertiary institutions.

The Evolution of Local Labor Markets after Recessions

The Evolution of Local Labor Markets after Recessions

Local Labor Market Impacts of the Energy Transition: Prospects and Policies

Local Labor Market Impacts of the Energy Transition: Prospects and Policies

Local Labor Market Impacts of the Energy Transition: Prospects and Policies

Local Labor Market Impacts of the Energy Transition: Prospects and Policies