Market Institutions Research Articles

From Conflict to Cooperation: Norwegian Labour Market Institutions in the Making

Moving a relationship of widespread conflicts and distrust into a virtuous circle of trust and cooperation is challenging, yet the case examined in this article shows that it is possible. A problematic start can indeed lead to a positive outcome. In the early twentieth century, Norway experienced the highest levels of labour conflict in Europe. Class conflicts were intense and often violent, with deep mistrust between the parties in the labour market. This situation changed markedly when the Norwegian Employers’ Confederation and the Norwegian Confederation of Trade Unions signed the Basic Agreement in 1935. This agreement not only led to a lasting decline in labour conflicts, but it also marked a crucial early step towards a system of close collaboration between labour and capital in Norway. By focusing on the intimate relationship between beliefs, trust, and cooperation, this article explores how the labour market parties transitioned from widespread conflict and open struggle to a system of peaceful negotiations and compromises. Changes in beliefs enabled the parties to coordinate on a new cooperative equilibrium, an equilibrium that continues to characterise Norway’s labour market today.

Art Market as a Factor in Shaping the Artistic Environment of Ukraine: Institutional Foundations and Development Prospects

The purpose of the article. The article is devoted to the influence of the leading persons and institutions of the Ukrainian art market on the formation of the circle of the most famous figures in the artistic environment, the dominant trends in the artistic life of the country, the tastes of the public, as well as the growing influence of representatives of the art business on the activities of state institutions in the field of culture. The methodology of the work is based on the application of methods of observation, analysis and generalisation, as well as the structural-functional method, considering the art market and the artistic environment as closely related social phenomena. A sociological approach to art as a collective activity is applied, in which not only artists are involved, but a large network of other participants in cultural life and the art market. The scientific novelty of the work consists in the study of the role of local art business in shaping the structure of the contemporary artistic environment of Ukraine. For the first time, the question of how decisive is the influence of the participants of the Ukrainian art market (primarily – art dealers, collectors and institutions related to them) on the formation of a certain hierarchical ranking of artists in the Ukrainian art environment on representatives of the mainstream and the rest of other, less well-known figures was highlighted, a significant part of which is, so to speak, on the periphery of cultural life; the impact of the art market on public tastes and the activities of state bodies in the field of culture is also outlined. Until now, the topic of close interdependence of the art world and the art market has been avoided in the Ukrainian art history discourse. Conclusions. The art market selects artists who become the most famous figures in Ukrainian artistic life and get the opportunity to represent the country at the international level. The art market shapes public tastes; the most successful participants of the art market (primarily art dealers and collectors) seek to participate in the formation of state cultural policy by integrating into state institutions. In accordance with world trends, the private sector will gain more and more influence in the modern cultural life of the country, which will have both a number of advantages for the development of the Ukrainian art market and artistic life, as well as certain, potentially possible, disadvantages.

Deciphering the Local Origins of Neoliberalism in Central and Eastern Europe: The Example of Lithuania

This article studies the local lineage of neoliberalism in Lithuania, examining its intellectual pedigree, early proponents and the structural shifts that facilitated its rise. The latter are attributed to the openings created by perestroika and the development of the communication network linking economists within the Reform Movement of Lithuania, émigré intellectuals and Hillsdale College in Michigan. Information exchanges produced within this network generated embryonic neoliberal ideas before 1991. The network also contributed to the establishment of an influential think tank, the Lithuanian Free Market Institute (LFMI), whose policy influence is illustrated by surveying monetary and pension privatisation reforms.

Portuguese Households on a Tightrope: Income Vulnerability during the COVID-19 Pandemic

During the COVID-19 pandemic, the Portuguese government implemented emergency fiscal measures to protect incomes. Despite these efforts, Portugal’s poverty rate increase in 2020 was the steepest among all European Union member states. The present article maintains that the prevailing labor market institutions limited the impact of the pandemic-related emergency measures. These institutions include social policies (such as low social benefits, minimum wages near the poverty line, and weak employment protection) as well as employment practices (such as precarious employment contracts and low wages). Established institutions increased households’ vulnerability to poverty and exacerbated the GDP/poverty nexus. JEL Classification: A120, B520, I380, N340.

Labour market skills, endogenous productivity and business cycles

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics. To this aim, we set up a model with asymmetric search and matching frictions across skilled and unskilled workers, and endogenous productivity through R&D investment and intangible capital accumulation. Skill mismatch and skill-specific labour market institutions have three main effects on business cycles and growth dynamics. First, the relative scarcity of skilled workers increases the natural rate of unemployment and reduces total factor productivity with long-run effects on the growth rate of output. Second, skill heterogeneity in the labour market generates asymmetric outcomes and amplifies measures of employment, wages and consumption inequality. Finally, the model provides important insights for the Phillips and Beveridge curves. Incorporating skill heterogeneity leads to a flattening of the Phillips curve as wages and unemployment respond unevenly across skill types. Also, the model generates sideward shifts of the Beveridge curve following business cycle shocks, with the extent of these shifts depending on the degree of skill heterogeneity.

Vulnerable options with regime switching and stochastic liquidity

Investigating default risk in pricing options holds significant practical importance, as nearly all market participants and institutions face credit risk. Additionally, economic cycles and asset liquidity are crucial factors that should be incorporated. This paper considers these factors and derives an analytical pricing formula. Specifically, we model the economic cycles through switching volatility driven by a continuous-time Markov chain, while we adopt a discounting factor based on market liquidity levels to model the asset liquidity. We establish a risk-neutral measure after embracing a regime-switching Esscher transform, and formulate a price representation to value vulnerable options analytically despite the complexity of the developed model. We conduct several numerical experiments to validate the model’s efficacy and flexibility.

Labor Unions, Debt, and Financial Advantage in Young Adulthood in the United States

Unionized workers experience significant labor market advantages. Do these advantages transfer to financial markets, including credit and consumer markets? We argue that union coverage facilitates financial advantages in young adulthood by enhancing access to wealth-building credit and avoidance of costly financial coping strategies. We extend a conceptual model of financial advantage based on young adults’ debt holdings to the case of early career union coverage using data from the National Longitudinal Survey of Youth-1997 Cohort. Findings support the importance of labor market institutions in fostering financial advantages and underscore the role of credit and debt for life course inequality processes.

Sistem Pemasaran Beras Bujang Marantau Di Kecamatan Sungai Tarab, Kabupaten Tanah Datar, Provinsi Sumatera Barat

The “Bujang Marantau” rice variety is local rice from Tanah Datar Regency which was registered as a national superior rice variety by BPTP West Sumatra in 2015 and grows well in Tanah Datar Regency. This increase in “Bujang Marantau” rice production must be balanced with a good marketing system so that farmers and institutions marketing can receive more favorable prices. The study is aimed to analyze the channels, functions and operational efficiency of rice marketing (marketing margin, farmer’s share, and profit to cost ratio) in Sungai Tarab District. This research involved 45 farmers as samples obtained through a simple random sampling method. Marketing institution respondents were obtained using the snowball method based on the flow of information from farmers and 15 marketing institution respondents were obtained. Qualitative data is used to analyze marketing channels and institutions. Quantitative data is used to analyze marketing margin, farmer’s share, profit to cost ratio and marketing efficiency index. The results showed that there are 3 marketing channels and 3 types of marketing institutions involved. The results of the marketing operational efficiency analysis show that the relatively efficient marketing channel is channel III because it has the lowest marketing margin value, the highest farmer’s share, and the shortest marketing channel compared to other channels. Marketing institutions should further optimize the marketing functions of each institution, such as the transportation function, so that transportation costs can be lower and minimize marketing costs more efficiently.

Registrars as institutions for ensuring the development of the real sector of macroeconomics

Subject. This article discusses the importance of diversified institutions of the financial system, linking the functionalities of the financial and real sectors of macroeconomics. Objectives. The article aims to substantiate the need for such institutions to recognize professional participants of the securities market engaged in maintaining registers of securities holders (registrars), and formulate proposals that contribute to the qualitative disclosure of the potential of registrars in this capacity. Methods. For the study, we used the methods of systems and logical analyses, and the tabulation procedure. Results. The article presents the author-developed proposals aimed at the implementation and development of the potential of registrars as diversified institutions of the financial system, capable of ensuring the development of equity investment as a factor of qualitative and quantitative growth of the real sector of the macro-economy. Conclusions and Relevance. The arguments set forth in the article regarding the need to create an institution of insurance for direct investments of citizens in the creation of new and the development of existing joint-stock companies, the need to provide individuals with the right to register on the websites of investment platforms as persons attracting investments, and other formulated proposals will form the basis for creating norms that contribute to the development of the functionality of registrars, including registrars that are operators of investment platforms, and the realization of their potential as an effective diversified institution of the financial market. The presented proposals may be in demand in the future work of the Bank of Russia, as well as in the work of all interested specialists and scientists aimed at improving the efficiency of the financial sector.

International comparative analysis of the industry-education relationship in vocational education and training: From the perspective of economic sociology

The relationship between industry and education serves as a focal point in research on vocational education. Previous studies using rigid Weberian ideal types of behavior struggle to capture the complex realities and notable variations both within and across developing countries and often fail to consider the impact of educational systems and the connection between education and employment. This article endeavors to introduce a new framework for international comparative analysis through the lens of economic sociology. This analytical framework examines three key dimensions: the readiness and capacity of industries to engage in vocational education, the willingness of students to enroll in vocational education, and the influence of labor market and education institutions on both industries and students in relation to vocational education. Its purpose is to explore the relationships and critical factors that affect the interactions between industry and education in Germany, the US, and China. The findings can be summarized as follows: In the US, industry has a relatively low demand for a skilled workforce and a diminished inclination to invest in vocational education and training (VET), and the willingness of students to engage in VET is also relatively low. Certain characteristics of US labor market and education system also present significant challenges for the industry-education relationship in VET. In Germany, the industry has a relatively high demand for skilled workers, and there is an interest in investing in VET, and some students are willing to choose VET. The labor markets and education systems in each country also affect the involvement of stakeholders in VET. In China, a more mixed picture can be observed, with a closer similarity to the US in terms of the industry-education relationship in VET, with the exception that the government plays a more active role in this.

Efisiensi Pemasaran Karet Di Kabupaten Ogan Ilir Sumatera Selatan

The rubber commodity in Ogan Ilir Regency plays an important role in increasing family income, but currently, the income of rubber farmers is still relatively low because farmers are still traditional in their marketing, causing the prices received by farmers to be low. The objectives of this study are to 1) Identify the functions of rubber marketing institutions in Ogan Ilir Regency, 2) Analyze the efficiency of rubber marketing in Ogan Ilir Regency.. Sampling was carried out randomly. 75 samples were used in this research, with a population of rubber farmers, namely 236 farmers in Tanjung Batu District and 254 in Payaraman District. Locations were chosen purposively based on the same considerations: the subdistricts and villages that produce the largest rubber production. Data collection uses cross-section data. Rubber marketing efficiency is analyzed using marketing margin, farmer's share, profit to cost ratio and the Data Envelopment Analysis (DEA) model. The research results show that rubber farmers in Ogan Ilir Regency use three marketing channel patterns. Based on the analysis of rubber marketing efficiency, it is recommended that rubber farmers in Ogan Ilir Regency use marketing channel 1, namely farmers-UPPB-factories and marketing channel 3, namely farmers-wholesalers-factories.

Determinan Yang Memengaruhi Pemilihan Saluran Pemasaran Kopi Robusta Di Kabupaten Malang

The demand for coffee in Malang Regency by determining the quantity of commodities is very dependent on the marketing subsystem. Robusta coffee marketing channels in Malang Regency include marketing institutions, namely small traders, sub-district collectors and large traders. Coffee marketing is dominated by small traders. This research aims to analyze the determinants that influence the choice of marketing channels for Robusta coffee in Malang Regency. The location of this research was carried out in two villages, namely Srimulyo Village and Sukodono Village, Kec. Dampit, Kab. Poor. The respondents in this research were Robusta coffee farmers in two villages in a total of 60 respondents. Marketing agency respondents were then determined using snowball sampling techniques. Snowball sampling method by collecting data based on information from previous respondents based on existing marketing patterns in Malang Regency. This research uses multinomial logit analysis by determining efficient marketing channels as a reference variable. Based on the results of marketing channel analysis, it was found that there are 5 marketing channel patterns. Marketing channel 1 consists of 27 farmers and the largest channel choice is 45%, while the results of the marketing efficiency analysis show that channel 5, namely direct farmers to wholesalers, is the most efficient. Marketing channel 5 consists of 11 farmers with a percentage of 18.3%. The results of the research show that 3 variables influence the choice of marketing channels, namely production volume, farming experience, and education level. Suggestions from research for extension workers and local governments need to assist farmers regarding financing and coffee market information so that marketing channel choices are more varied.

Job computerization, occupational employment and wages: A comparative study of the United States, Germany, and Japan

This study adds to the growing literature on wage and employment responses to the risk of job computerization. Specifically, it revisits the original occupational perspective and inquires into the nature of the adjustments of occupational wages and employment, i.e., the potential benefits and costs associated with professional careers in such occupations. The investigation further aims at identifying whether these adjustment processes are universal — as suggested by the global availability of the respective technology — or reflect country-specific peculiarities. To this end, it conducts a comparative analysis with data from the United States, Germany, and Japan, three G7 lead countries which share the commitment to fostering technological progress, but which are also characterized by distinctly different labor market institutions and approaches to industrial policies. Generally consistent with the country-specific employment institutions and common corporate strategies, transmission channels — as reflected by the relationship between adjustments of occupational employment and wages — differ between countries. In all three countries, though, higher risks of computerization are associated with relative wage losses in occupations which require low levels of formal education or training.

FORECASTING THE INNOVATIVE AND DIGITAL STRENGTH OF UKRAINE’S ECONOMY ON THE BASIS OF CORRELATION-REGRESS ANALYSIS

The purpose of the research is to present the realised forecasts of Ukraine's economic power in order to find reserves for the recovery of the national economy and opportunities for the formation of digital entrepreneurship on the basis of innovative functioning, which will lead to economic growth in the medium and long term. The object of scientific research is the expenditure on SRD and S&T development by types of work in Ukraine from 2010 to 2022 and the analysis of indicators of GDP the influence of time, employment and inflation factors; expansion of digital capabilities of entrepreneurship due to the conducted R&D, which will become a guarantee of the emergence of breakthrough innovations as one of the key reserves of innovative and digital development of the country during the war and post-war reconstruction of Ukraine. Methodology. A study was conducted utilising dialectical, systematic, mathematical and statistical methods to investigate the R&D expenses by types of work in Ukraine from 2010 to 2022 and the GDP from 2011 to 2023. This analysis determined the prospective existing reserve of economic strength with positive dynamics and highlighted the necessity for a strategic format of digital business work based on innovation. A CRA was conducted to determine the strength of the relationship between SRD expenditures and time (i.e., a set of factors that consistently influence SRD funding and drive its growth trend). Fisher's test was calculated, and an econometric analysis was performed based on GDP indicators over 56 quarters, establishing the dependence of the GDP volume on the time factor and the cyclicality of seasonal fluctuations. Resluts. The conditions for accelerating the digitisation of business processes at domestic enterprises are, in particular, the presence of highly qualified S&R personnel, innovators and researchers in the country, the development of new institutes of innovative and digital development, and the transformation and adaptation of old institutes of development to the existing conditions. The obtained data of CRA show that there is a close relationship between the GDP of Ukraine and the time factor, and the direction of the relationship is direct, i.e., linear, which in this case is a positive fact. It is determined that in pursuit of the goal of restoring the innovative potential of the national economy in the post-war period and further active development of digital entrepreneurship in Ukraine, it is necessary to continue financial support for scientific research and scientific and technical developments carried out in various sectors of the economy. Practical implications. The analysed statistical data had a positive impact on the professionalism of the forecast calculations and allowed to state that in 2027, with a probability of error of 6.29%, the volume of expenditures on research and development is projected to range from 20,202.74 to 29,201.18 million UAH. The results of the CRA show that the multiple correlation coefficient (R) is 0.94, which indicates a close overall relationship between the country's GDP and three independent variables (inflation rate, unemployment rate, time factor). The linear regression equation fits the sample data well and the model is qualitative. The results of the forecast are as follows: Ukraine has the potential for post-war recovery and can develop models for post-war economic reconstruction and changes in its structure. Government officials can develop institutional instruments to attract investment and provide effective mechanisms for the future transformation of the existing labour market and human capital institution. Value / Originality. Having conducted a thorough analysis of the statistical data on the dynamics of spending on S&T development and implementation of the SRD in Ukraine in 2010-2022, the authors managed to determine the relative error of approximation – a criterion for assessing the reliability of the forecast, which amounted to 8.74% and considered the approximation to be qualitative, and the forecast for 2027 is reliable. It is determined that the regression equation is most accurate when R2 approaches its maximum value, that is, 1, and in this case, it is 0.9096, which is a good result and means that the linear regression equation fits the sample data well and the model is of high quality. And for Ukraine's economy, which is under martial law, such positive expectations for GDP and the possibility of increasing R&D spending give hope that Ukraine's economic strength is real, as confirmed by the forecast calculations.

Integration Projects and Institutional Matrices

In this paper, an attempt is made to understand the reasons for the formation of a particular order in a region based on the institutional approach. The connection between regional order and regional regulation with the type of institutional matrices of integrating countries is shown. It is established that when integrating social systems in order to mitigate possible institutional imbalances, institutions complementary to those dominant in the institutional matrix are used: when integrating X-matrix countries – market institutions and vice versa. The factors blocking regionalism in integration projects involving countries with institutional matrices of the same type include: the presence of one clearly expressed hegemon and its support of supranational regulatory bodies, the presence of federal rather than unitary states in the region. It has been established that for countries with different types of institutional matrix, convergence is possible (for example, cooperation in the security sphere, participation in the Free Trade Zone), but integration in this case will be limited to only certain areas that are of exceptional importance for social systems, with the prevalence of regionalization processes (integration “from below” without the creation of any significant and effective supranational bodies). Factors that hinder the development of both regionalism and regionalization are increasing political differences between countries, polarization along religious lines, manifestations of nationalism and racism.

On the opposition to market institutions on moral grounds

From a liberal viewpoint, voluntary trade appears to be something that should meet universal approval. If no one is obliged to trade, establishing a market institution could only make all better off. Nonetheless, specific market institutions meet substantial skepticism and criticism. This paper extends the extant literature by surveying the moral opposition towards trade in multiple dimensions and linking this to policy support measures. We provide survey results on moral opposition to trade in organs, sex services, surrogate mothers, trade in carbon permits, goods produced in poor countries, and food from countries where people suffer from hunger. These cover the potential reasons for opposing trade institutions: moral concerns, paternalism regarding risk-taking, and distributional concerns. Beyond this, we measure support for policies on unemployment benefits, risk prevention, equality goals within society, and redistribution. The survey of Amazon Mechanical Turk workers from the U.S. reveals significant moral opposition to trade in diverse dimensions. About a third of the participants strongly oppose trade in body items, sex services, and food imports from countries where a large proportion of the population suffers from hunger and malnutrition. Fewer participants strongly oppose trading CO2 permits, importing from developing countries, or allowing surrogate mothership. Besides other correlates (e.g., gender, education, being conservative), individuals’ attitudes towards imposing risks on others are identified as an important correlate of the opposition to trade for all the contexts of trade: those who are averse to exposing others to risk for their own advantage are more likely to oppose trading institutions. This measure of social preferences also relates to support for policies on risk prevention, equality goals within society, and redistribution. We discuss potential mechanisms behind this explanatory power of the newly identified measure.

Literature review of comparative school-to-work research: how institutional settings shape individual labour market outcomes

Comparative school-to-work research has long emphasised the role of institutions in shaping youth labour market integration. This paper provides an overview of this research stream, consisting of four main sections. The first section introduces a variety of labour market outcomes of young graduates within Europe and identifies country clusters with higher and lower outcomes; this empirical evidence has so far remained limited in the multivariate oriented research stream. The second section links these labour market outcomes to the institutional settings of the education systems prevalent in the country clusters. By considering a wide country sample, it introduces a reliable country classification of transition regimes (along the OLM–ILM continuum), which has so far been partly inconclusive in research. The third section links labour market outcomes in turn to labour market institutions of the country clusters. This section emphasizes why labour market institutions drive only particular individual outcomes. Finally, the fourth section connects the previous three: it describes how certain institutional complementarities affect the youth labour market integration in the identified European country clusters. The review further identifies theoretical inconclusiveness or data-related desiderata, for which recommendations and solutions are proposed. The paper thus aims to assist both familiar and unfamiliar researchers to access the research stream by offering a comprehensive introduction and clear country classifications, linking research streams, and providing solutions to identified issues.

Labour Markets in Libya: Opportunities and Risks

The Libyan economy faces significant challenges due to its lack of diversification, with the public sector dominating the labour market. This dominance has led to high unemployment rates, job instability, skills shortages, and widespread informal employment. This research critically examines the current state of the Libyan labour market, identifying both opportunities and risks, and provides a comprehensive overview of Libya’s workforce. The analysis reveals that 67% of the Libyan population is under the age of 35, representing a substantial and expanding workforce. Libya’s strategic location in North Africa provides access to European and African markets, potentially fostering economic growth and job creation. However, a misalignment between workforce skills and private sector requirements impedes sustainable development. Additional challenges include a weak private sector, economic identity issues, and political instability. Reducing reliance on oil and gas, combating corruption, and enhancing the education system are essential for achieving economic resilience and social stability. The findings indicate that labour market programs and institutions have had minimal impact on outcomes, with notable disparities between capital owners and income earners. Women face significant barriers to economic empowerment, despite the presence of inclusive sectors such as hospitality and financial services. Barriers to inclusivity and productivity, including gender disparities, skills mismatches, education gaps, and issues within the informal labour market, persist. Policy interventions are crucial to capitalize on these opportunities and mitigate associated risks through comprehensive labour market strategies.

Інституціональні засади формування та розвитку стійкого ринку електронної комерції

This research examines the institutional aspects of developing a resilient e-commerce market in Ukraine. The institutional approach allows us to consider various aspects of formation, functioning, and changes within the social institutions and their influence of e-commerce solutions on individuals’ activities and social interaction. During the literature review, the various approaches to the essence of the institution as an economic category were considered. The author proposed considering the e-commerce institution as a socially formed system that structures interaction within the e-commerce market by implementing formal and informal rules that influence subjects’ activities by establishing restrictions and organizing motivational mechanisms that support the desired behavior to maximize the aggregate economic impact. The roles and functions of the leading institutional players, particularly state institutions, market institutions, research institutions, and public and non-profit institutions, are defined. The literature review determined that e-commerce adoption is significantly determined by the response to pressure from external agents (consumers and competitors) and internal agents (employees). The model of the institutional environment of the e-commerce system is presented. The proposed model is based on the interaction of e-commerce institutions that contribute to institutionalizing e-commerce technologies within the Ukrainian business environment. The institutional influence is being implemented by utilizing the interaction of the ‘business-government-society’ triad. Among the expected institutional effects of the general modernization of the socio-economic system, the harmonization of relationships between individual participants and the reduction of resource asymmetry can be highlighted. Three types of institutional pressures that influence the enterprises’ decisions to adopt and develop e-commerce systems are discussed, particularly coercive, regulatory, and mimetic types of pressure. The interaction of these types of institutional pressure thereby influences the enterprises’ perception of barriers and opportunities for adopting and utilizing e-commerce. Keywords: e-commerce, institutionalization, resilience.

A journey of a Filipino pre-service teacher before entering the Department of Education

The journey of pre-service teachers in the Philippines was a transformative and crucial phase that involved comprehensive preparation, training, and personal growth. This research explored the experiences and challenges encountered by Filipino pre-service teachers and the factors that influenced the duration of their journey before they officially entered the Department of Education (DepEd). The research utilized a mixed-method design. The participants were sixty (60) pre-service teachers from different Teacher Education Institutions across the Philippines. Results showed that the duration of entering DepEd varied for each pre-service teacher based on different factors and their unique circumstances. Additionally, changes in policies, educational reforms, or external factors influenced the timeline for entering the department. The timeline for pre-service teachers to secure employment within the education department ranged from several months to a year or more, depending on the combination of academic requirements, licensure examinations, and bureaucratic processes they needed to complete. The duration of the transition process varied based on individual circumstances, such as qualifications, networking efforts, flexibility, and the specific conditions of the job market and educational institutions in a particular region. These findings implied that educational institutions, policymakers, and stakeholders could make informed decisions and implement targeted reforms that expedited the employment process for pre-service teachers. It was important to strike a balance between efficiency and maintaining high educational standards, ensuring that the reforms contributed to the overall quality of the education system.