Regional Labour Research Articles

FINANCIAL FACTORSOF FORMING NEW ENTERPRISES: MODEL OF RUSSIAN REGIONS

In the current geopolitical and economic situation, the relevance of developing domestic segment of entrepreneurs is increasing due to the accelerated formation of new enterprises capable of ensuring economic stability in the Russian regions. One of the most important factors determining the prospects for such formation is the financial conditions for starting an activity. The analysis of this problem is still poorly presented in domestic scientific literature, there are no systematic studies of it. This article eliminates this gap and aims to study the impact of bank lending volume, together with attracted funds of the population as a source of financing new entrepreneurship, on the dynamics of new entries. For the period of 2012–2021, the author reveals multidirectional trends of such dynamics in the segments of commercial companies and individual entrepreneurs in the Russian regions. A significant interregional differentiation has been established both in terms of the parameters forming new enterprises and regional financial conditions. The development of negative trends in the field of SME lending is stated. A model is proposed that substantiates a significant influence of financial factors on the dynamics of business entries in the segments of commercial companies and sole proprietors. This dynamics is also influenced by a number of other economic conditions – the state of regional labor markets, the population and its real incomes, the number of economic entities, etc. Against the background of negative expectations in the economy and a decline in business activity, a sharp deterioration in the financial security of new enterprises is viewed as possible. Regional policy should stimulate the development of entrepreneurship through simplifying the access of entrepreneurs to sources of financing, reducing the cost of borrowed funds. Anti-crisis government policies of 2022 also have a certain potential to solve the problems of financing new enterprises.

Does Industrial Intelligence Promote Sustainable Employment?

One of the key driving factors for achieving the goal of sustainable economic development is to ensure decent employment opportunities. This article explores the relationship between industrial intelligence and sustainable development in China from the perspective of employment. Based on interprovincial panel data from 2006 to 2019, using the fixed-effect regression model and mediating-effect regression model, this study empirically tests the impact of industrial intelligence on sustainable employment in China. The following conclusions are drawn: (1) Industrial intelligence has a significant positive impact on the overall scale of employment. Industrial intelligence has promoted the optimization and upgrading of employment skill structure and industrial structure. Industrial intelligence will reduce the employment proportion of low-skilled labor and increase the employment proportion of medium-skilled labor and high-skilled labor. Industrial intelligence significantly reduces the employment share of the manufacturing sector and increases the employment share of the service sector. (2) Industrial intelligence reduces employment levels through capital deepening effects. Industrial intelligence has significantly improved regional labor productivity and significantly improved employment levels through productivity effects. (3) The results of regional heterogeneity show that industrial intelligence has promoted the improvement of employment level and the upgrading of employment structure in the eastern region but has not had a significant positive impact on other regions.

The impact of capital goods trade liberalization on regional labor market in China

The impact of trade liberalization on regional employment dynamics remains a topic of ongoing debate and scrutiny. This study aims to provide a nuanced understanding by focusing specifically on the effects of imported capital goods trade. Our study analysis reveals that capital goods trade liberalization predominantly leads to a substitution effect between capital and labor, resulting in a reduction in overall regional employment levels. However, we also find complementary effects between capital and high-skilled labor, alongside substitution effects on low-skilled labor, which collectively influence the regional labor market's skill structure. Furthermore, our study identifies the heterogeneous spillover effects of capital goods trade liberalization on regional labor markets, varying across different regions and city scales. We argue that investing in region skill development resources can help align the workforce with global factors, fostering positive interaction between regions.

Zunehmende Fachkräfteengpässe – Warum sind ländliche Räume besonders betroffen?

Abstract Over the past decade, firms’ recruitment problems have increased significantly in Germany. We show that skill shortages have been more pronounced in rural areas and that the gap between rural and urban regions has slightly increased. The intensity of a local skill shortage is linked to regional labour market conditions, the occupational composition and the share of small establishments. However, the most important factor is a more advanced demographic change in rural areas. Of all factors considered, the proportion of older workers correlates most strongly with the regional vacancy rate.

Environmental Regulation Intensity and Low-Carbon Technology Progress in the Context of the Internet of Things

Abstract Whether the intensity of environmental regulation affects the progress of low-carbon technology is an important issue faced by the development of low-carbon economy in the new era. From a macro perspective, this article selects panel data from 30 provincial-level administrative regions in China from 2000 to 2009 for analysis. The impact and mechanism of environmental regulation intensity on low-carbon technological progress are analyzed. The empirical results indicate that the increase in environmental regulation intensity has significantly promoted the progress of low-carbon technology in the region. The subsample test shows that this effect is greater in the eastern region than in the central and western regions, but there is no significant difference in the impact of environmental regulatory intensity on the progress of the two types of low-carbon technologies. The mechanism test shows that regional labor costs research and development capabilities have moderating effects on the above effects. These low-carbon technologies have been widely applied in various fields of the Internet of Things.

Spatial-temporal assessment of regional labor market differentiation

Abstract The purpose of this article is a comparative analysis of regional and temporal labor market differentiation. In the study, the following voivodeships were taken as comparative objects. In accordance, following the administrative division, the voivodeships were adopted, while the research period was taken as the years 2011–2021. To study the differentiation of the voivodeship labor markets, the classical method of share shifts and the analysis of share shifts were used. The number of employed people and the registered unemployed by gender were chosen as the measures of differentiation on which the study was based. The results of the analyses made it possible to examine changes in the structure and assess the development of regional labor markets over time.

Modeling the demographic situation in the regions by agent-based approach

The aim of the paper is to predict demographic changes at the regional level, based on the variation of the parameters of the healthcare system presumed to be a significant factor in both the number of population and its qualitative characteristics. It is assumed that a reform of the healthcare system reflects the institutional nature of state regulation and serves functionally as an exogenous shock in the model. Based on the agent-based modeling a model consisting of two regions has been developed. It takes into account the migration of agents making decisions based on the level of private income. Various scenarios for modeling demographic indicators are presented, depending on the selected quality regime of the healthcare system that reflects the institutional features of the region. The model is calculated based on the statistics for the Perm Region and the Sverdlovsk Region for the period 2012—2019. The approbation of the model on actual regional data confirmed its operability and adequacy. Shocks in the healthcare system are associated with the corresponding budget expenditures under budget constraints of the regional government sector and have an impact on the dynamics of migration at regional labor markets, as well as on the simulated health indicators. The simulation results confirm the effectiveness of the presented methodological approach, which can be used in the development of regional strategies, as well as planning and assessing the consequences of state reforms in social policy.

АНАЛІЗ СТАНУ СВІТОВОГО РИНКУ ПРАЦІ В УМОВАХ ГЛОБАЛЬНОЇ ДІДЖИТАЛІЗАЦІЇ

In the context of the Fourth Industrial Revolution, there is a continuous transformation of processes in the labor market. Digitalization of society affects the structure of the employment sector, when some professions become obsolete due to automation of work processes. At the same time, there is a demand for new competencies aimed at working in an online environment. The purpose of this article is to analyze current global economic and technological trends affecting the transformation of the labor market and the formation of new socio-economic relations in the context of the formation of the digital economy. The author draws attention to changes in the nature of work and forms of work activity, requirements for professional skills and abilities. It shows how changes related to the digitalization of the economy directly affect the issues of training and retraining of the most popular specialists. The article systematizes the main global trends in the labor market caused by the digitalization of the economy and the widespread introduction of Information Computer Technologies. In the course of the research, the author revealed that digitalization of the economy has the opposite impact on labor markets, leading to multidirectional processes in the medium term, which is expressed in the reduction of low-skilled jobs, an increase in the level of robotization of production, differentiation of forms of Organization of production, revision of types of economic relations. As a result of digital transformation in industry, it became possible to produce products with higher quality, and the human factor became less significant in many production and technology sectors. The negative consequences of digitalization include the disappearance of a large number of professions, the release of workers, and an increase in unemployment. The author concludes that digital inequality in regional labor markets, with its further development, may negatively affect ensuring the country's economic sovereignty. At the same time, the results of the study suggest that no automation can completely replace a person, so forecasting total unemployment due to the robotization of production is temporary.

Labor market in rural areas of Akmola region of Kazakhstan: regional aspect

The goal is to identify the features and determine quantitative parameters of the regional labor market in the Akmola region. Methods – analytical and statistical industry information is systematized and summarized using economic-statistical, balance sheet and abstract-logical methods from open access sources and scientific literature. Results - the features were studied and characteristics of labor potential of the region were given, analysis of absolute and relative indicators characterizing the dynamics of region's population movement was carried out, which made it possible to identify the main trends in its change in recent years. Demographic factors affecting the formation of labor force are shown. The volumes of socio-demographic load were calculated. Conclusions - it has been established that proportion of village residents tends to decrease both in absolute value and in the structure of total number. The main criteria are population migration and decrease in its natural increase. The reduction in the number of economically active residents of rural areas is explained by negative balance of difference between people who have entered active age and those who have retired, as well as migration processes that have their own specifics. It is noted that the level of the region’s labor resources is directly related to demographic development of the given territory. The deterioration of the demographic situation has a negative impact on quantitative and qualitative dimensions characterizing the regional labor market. The youth segment remains rather unbalanced, the areas of employment of young specialists are closely related to low levels of income and labor productivity, the persistent gap between professional orientation of youth and the labor needs of enterprises becomes one of the barriers to the employment of young people.

The influence of Japanese automotive industry investment in East Nógrád

This study explores Japanese-Hungarian economic relations, specifically focusing on foreign direct investments (FDI) in Hungary. The analysis delves into the historical development and current state of Japanese capital flow into Hungary, with a particular emphasis on the automotive industry. Foreign direct investments are shown to enhance productivity throughtechnology transfer and foster positive impacts on corporate relationships, contributing to economic growth. The study demonstrates the mutual benefits of Japanese FDI in the Hungarian automotive industry and includes a case study on the activities of a Japanese company in Hungary, examining its role in the regional labour market.

Labour misallocation and digital infrastructure: evidence from a quasi-natural experiment of ‘broadband China strategy’

ABSTRACT We use the expansion of broadband infrastructure in China as a quasi-natural experiment to examine the causal effect of digital infrastructure constructions on the reduction in labour misallocation. Combining the information of ‘Broadband China Strategy’ with Chinese city-level data in 2010–2020, we demonstrate that the expansion of digital infrastructure significantly reduces regional labour misallocation, particularly within non-provincial level cities. The effect is lagged and growing over time. Additionally, it is found that digital infrastructure primarily improves the allocation of labour by facilitating labour mobility. The above findings are robust, providing new insights into the construction of information infrastructure to improve resource allocation and increase productivity.

Emerging ICT clusters in the Western Balkans: A convergence model based on financial statement analysis

The Western Balkans is experiencing an ongoing inflow of foreign direct investments (FDI) in the information and communications technology (ICT) industry as several European enterprises have already established their presence in the region. These inflows have generated large-scale ICT investments in the region, creating new knowledge-based clusters and technology spillovers in regional economies. On the basis of financial statement indicators collected for 327 European and regional ICT enterprises and on panel data estimation, this paper tries to estimate technology transfer in the Western Balkan region. Specifically, the proposed model examines cluster spillover effects in improving the absorptive capacity of the Western Balkan region in creating a pool of specialized local suppliers and a talented regional labor force. Model estimation results indicate that limited spillover effects have occurred from the newly created clusters of European ICT enterprises in the regional economy of the Western Balkan region. Spillovers related to improved technical capabilities, increased labor productivity, higher resource efficiency, and flexible operational structures require further stimulation to speed up convergence and integration of the local ICT industry in the corresponding European value chain. Finally, this paper concludes that competitive advantages such as a cheap labor force are no longer feasible for sustainable development. To narrow down the existing know-how gap, particular efforts are required regarding policies focused on educating human capital and transforming regional enterprises to successfully compete in the European market.

Прогностический подход в процессе совершенствования личностного и профессионального уровня педагогов с учетом развития региональной образовательной системы

The article is devoted to the study of the issue of a prognostic approach in the process of improving the personal and professional level of teachers in view of the development of the regional educational system. One of the features of the socio-political development of the Russian education system today is the qualitative renewal of the federal structure of our state. Modernization and reform of the educational system in the constituent entities of the Russian Federation is justified by the increased responsibility of the regions for the quality of education and the need for integration into the educational space of the state. The regional education system of the various republics of the Russian Federation, having certain general invariant characteristics, always remains conditioned by geographical, economic, sociocultural, national-ethnic, and confessional specifics. The formation of regional labor markets is relevant, and the most important task of the process of improving the personal and professional level of teachers is to take into account the specifics of the regional educational system of vocational education, ensuring the social protection of teachers by introducing regional production specifics into the content and organizational forms of this type of activity.

Shift-Share Method in Assessing the Interrelation of Employment Dynamics in Cities and Regions

Purpose of the study. The aim of the study is to analyze the dynamics of employment in major cities of the Russian Federation, including megacities, in the context of rapid innovative development, complex demographic situation, and instability of external migration flows. The research focuses on identifying factors at various levels that affect employment, with an emphasis on the interconnections of cities and regions in the hierarchical “city-region” system. Materials and methods. The paper explores the shift-share method (SSM), which allows decomposing changes in employment with highlighting the influence of the overall dynamics of the regional labor market, industry characteristics, and competitive factors of cities. A multilevel analysis using this method aims to assess the structural-dynamic links of the hierarchically interconnected “city-region” system. The research uses municipal statistics data from 81 cities of the Russian Federation for the period from 2017 to 2021. Based on the concept of sectoral division of the economy, taking into account the functional features of the included industries, the structural-dynamic employment indexes in cities were analyzed across four economic sectors. Results. The application of the SSM method yielded results that allow for a detailed examination of employment dynamics in major cities. The analysis includes the influence of the overall dynamics of the regional labor market, industry characteristics, and competitive factors of cities. The research validates the effectiveness of the shift-share method for the preliminary analysis of employment dynamics in cities with the aim of specifying the significance of the impact on it by industrial and sectoral factors at regional and local levels and their prioritization for further analysis and the development of recommendations for urban economic management. Conclusion. The study highlights the importance of analyzing employment in the context of the urban economy, especially under conditions of rapid innovative development and demographic challenges. The SSM method appears to be an effective tool for preliminary examination of employment dynamics, identifying key factors, and developing management strategies aimed at improving the economic development of Russia’s major cities.

The Regional Labor Market in the Field of Tourism and the Hotel Industry in the Context of the Transformation of the Russian Economy

The relevance. The departure of foreign companies, combined with the growth of domestic demand, has created positive prerequisites for the development of domestic hotel chains and domestic tourism. These objective processes have led to the need to assess the labor market in the tourism and hotel industry in order to identify problems and ways to solve them with the increasing demand of enterprises in this field for qualified specialists. The purpose of the study is to study and analyze the current situation and problems in the labor market in the tourism and hotel industry of the Kursk region. The objectives were to assess the job market in the region, requests and offers from employers, the structure of vacancies and the activity of applicants. Methodology. The research methodology is based on the analysis of statistical information contained in the all-Russian federal database of vacancies and resumes of specialists in the tourism and hotel industry. Results. The data of Russian online recruitment platforms are analyzed and systematized. Based on the results of the analysis of the composition and structure of the labor market of specialists in the hospitality sector, the comparison of supply and demand indicators in it, the analysis of wages in the field under consideration and the dynamics of its change, measures were proposed, the implementation of which will ensure the sustainable development of the industry. Conclusions. Despite some problems and shortcomings in the hospitality sector of the Kursk region, this industry continues to develop and grow. With the growing number of tourists and an increase in the volume of services provided, the labor market in this area is becoming more competitive and attractive for qualified specialists. Regular monitoring of the labor market and analysis of changes in personnel qualification requirements will improve the quality of services provided and meet the growing demand for hospitality workers.

Short-term impact of climate change on labor market in China: Quantitative spatial analysis based on an oligopsony model

Assessing the impact of climate change on the economy is an important issue for designing climate policy. By constructing an oligopsony model to depict the incompleteness of the labor market and using the quantitative spatial model analysis method, we quantitatively estimated the short-term impact of climate change on the labor market in China. Then, to control climate change, the optimal climate change governance intensities (CCGI) of multi-governments satisfying CD preferences and Stackelberg game are designed and solved. The results show that climate change leads to a decrease in wages and labor supply in labor market equilibrium and a loss of market aggregate income and labor scale. Climate change has led to a shift in labor from the agricultural and dirty sectors to the clean sector. The regional labor distribution is also being “disrupted” due to climate change. Moreover, declining migration costs and increased subsidies help to reduce the negative impacts of climate change. The optimal CCGI of the central government is higher than that of the provincial government. The optimal CCGI is higher in the eastern provinces than in the central and western regions. Implementing CCGI would mitigate the negative climate change shocks to the labor market in China and increase welfare. The conclusions of this paper provide strong support for preventing climate change risks and actively participating in global climate change governance.

Trajectories among recipients of social assistance in Norway: A local approach

AbstractBackground and PurposeLittle scholarly attention has been paid to variations in local welfare provisions and how they frame beneficiaries’ welfare‐work trajectories. This is unfortunate since increasingly a varied menu of services is provided locally and welfare‐work trajectories unfold in a local context. The purpose of this paper is to contribute to this debate by examining the welfare‐work trajectories among young social assistance recipients in Norwegian municipalities and how they are related to the local setting and in particular the organization of the local welfare office.Data and MethodsNational registers provide longitudinal information on all young social assistance recipients (N = 4654) in 2012. Information on municipalities (N = 373) and the local labour and welfare offices (N = 399) is collected from official government sources. Welfare‐work trajectories spanning seven years are created by sequence analysis forming eight clusters. The relationship between organizational features of the labour and welfare office and trajectory clusters is modelled by means of multinomial logistic regression, after controlling for variables on the individual, the municipal, and the regional level.ResultsThe analysis shows that: (a) among the individual variables, those reflecting poor health consistently predict trajectories characterized by benefit receipt and loose attachment to the labour market; (b) variables related to the municipal level are of limited importance, and (c) variables pertaining to the organization of the labour and welfare offices play a minor role.ConclusionOnce individual, municipal, and regional labour market factors are considered, characteristics of the welfare office are of marginal significance. [Correction added on 17 September 2024, after first online publication: The Abstract and Keywords have been added in this version.]

Functional Labour Markets Revealed by Travel to Work Data 1991 and 2001

Regional labour market analysis is ideally based on functional rather than administrative areas. Travel-to-work data obtained from the 1991 and 2001 Census are used to define a set of functional labour markets for New Zealand. Considerable stability is found in the boundaries of the identified labour markets 1991 and 2001 although with a reduction in the number of areas from 140 to 106. The overall stability in the identified areas suggests that they provide a robust basis for regional analysis. The reduction in the number of areas is explained in part by data deficiencies associated with the 2001 Census and in some instances by changes in commuting patterns.

Vocational education for regional health: the role of training in economic transitions

ABSTRACT Vocational education has a crucial role in regional labour markets, providing skills to meet local employment demand. In many regional areas of Australia, there has been a transition in employment from manufacturing and agriculture to service industries. The increase in employment has been most evident in the health and community services sector and particularly in care-based occupations, which has also changed the composition of regional labour forces. Using a political economy of skills conceptualisation, this article provides insights into the role of in-region vocational education providers in connecting communities to employment in emerging industries during these transitions. Vocational education is essential in navigating these various trends and transitions within communities, which underscores the critiques of competitive policy agendas in the provision of regional training.

Productivity slowdown across European regions: does non-standard work matter?

ABSTRACT In recent decades, Europe has experienced a significant slowdown in productivity, accompanied by rising regional inequalities. At the same time, the fragmentation of work and the rise of non-standard forms of employment have deeply reshaped labour markets. Through the analysis of an extensive database comprising data on regional labour markets and productivity trends, we investigate the relationship between non-standard work and labour productivity dynamics in European regions from 2004 to 2018. The findings highlight that increasing non-standard employment across regions is likely to negatively affect labour productivity growth. Moreover, to some extent, the spread of non-standard jobs, especially of permanent, yet involuntary, part-time positions, might contribute to the widening of regional disparities.