Role Of Labour Market Policies Research Articles

Crime and Unemployment in the EU: The Role of Labour Market Policies and Shadow Economy

Crime and Unemployment in the EU: The Role of Labour Market Policies and Shadow Economy

Long-term trends in psychosocial working conditions in Europe-the role of labor market policies.

BackgroundEmployees have witnessed rising trend in work stress over the last few decades. However, we know a little about country differences in those trends. Our article fills this gap in the literature by examining heterogeneities in trends in working conditions by country groups defined by their amount of investment into labor market policy (LMP) programs. Additionally, we provide findings on differences in occupational inequalities between country groups.MethodsWe use comparative longitudinal data of the European Working Conditions Surveys including cross-sectional information on employees from 15 countries surveyed in Waves 1995, 2000, 2005, 2010 and 2015. Estimation results are provided by three-way multilevel models with employees nested within country-years nested within countries. Our work stress measure is the proxy version of job strain based on the demand-control model.ResultsOur regression results indicate that for employees in countries with the least LMP spending job strain increased by 10% from 1995 to 2015 compared to a smaller and insignificant change in middle- and high-LMP countries. In low-LMP countries, inequalities in job strain also widened during the studied period: the gap in job strain between the highest- and lowest-skilled increased by 60% from 1995 to 2015. This contrasts a stable gap in middle- and high-LMP countries.ConclusionsOur results direct the attention to the vulnerable position of the least skilled and highlight that LMP investments may buffer some of the adverse impacts of globalization and technological changes and effectively improve the labor market situation of the least skilled.

The disability employment gap in European countries: What is the role of labour market policy?

Across Europe, the labour market participation of persons with disabilities remains lower than that of persons without a disability. Our research examines this disability employment gap, looking specifically at its variation by country and gender. Additionally, we test the influence of labour market policies – testing both the social investment perspective and the welfare scepticism perspective – on the size of the gap, in an effort to determine whether a more generous welfare state raises or lowers the employment rate of people with disabilities. Using the European Union Statistics on Income and Living Conditions (EU-SILC), we show that Southern European countries have the smallest disability employment gap. Whereas stricter employment protection legislation is found to be beneficial for people with disabilities on the labour market, other labour market policies specifically intended to benefit this group do not strongly affect their chances on the labour market. These findings support the social investment perspective and show that social policies can have a positive effect on the employment of people with disabilities.

Book reviews: Michał Moszyński, Zenon Wiśniewski: LABOUR MARKET POLICY IN THE GERMANY'S SOCIAL MARKET

In the presented monograph, a distinction can be made three main problem areas. Considerations theoretical focus is on the German model Social Market Economy. Lots of space devoted to the role of labour market policy in this model. The transformation was then critically assessed East German economy, consequences employment policy of the adopted high wage strategy and investment promotion, and attention was paid to labour market policy offensive in the eastern part German. The third problem plane includes issues related to the transition from active to activating labour market policy, implementation of reforms Hartz and their socio-economic consequences

Markups and income inequality: Causal links, 1975-2011

Using data for 20 countries during 1975–2011, this study provides new evidence on the association between the lack of competition, measured by an increase in markups, and income inequality. We find that an increase in markups is positively associated with rising income inequality. More interestingly, not only do extra profits from higher markups accrue to the top-income group, but also, within the top-income group (top 10%), the higher top-income earners (top 1%) tend to benefit disproportionately more than the lower top-income earners (top 5% or 10%). Finally, we highlight the role of labor market policies; the positive relationship between markups and income inequality is less pronounced in countries with better labor protection such as the statutory protection and power of labor unions, generous unemployment benefits, and mandatory minimum wages.

Economic Outcomes of Immigrants with Different Migration Motives: The Role of Labour Market Policies

Abstract This paper studies the role of labour market policies for economic outcomes of immigrants with different migration motives. Using two recent European Union Labour Force Surveys ad hoc modules and applying country fixed-effects models, we examine if labour market policies can alleviate the economic disadvantage of family reunification and refugee immigrants in comparison to economic immigrants. In line with previous studies, we find that even after controlling for differences in human capital and socio-demographic characteristics, family reunification, and particularly refugee immigrants have considerably lower labour force participation and employment rates, and when employed, work fewer hours and have a lower occupational status than economic immigrants. However, we also find that the economic disadvantage of family reunification and refugee immigrants is significantly smaller in countries with more extensive labour market policies. These findings hold for the overall labour market mobility index as well as its specific sub-dimensions: general and targeted support and workers’ rights.

Leaving Home in Insecure Conditions. The Role of Labour Market Policies and the Housing Market in Europe

Leaving Home in Insecure Conditions. The Role of Labour Market Policies and the Housing Market in Europe

Does unemployment matter? Economic insecurity, labour market policies and the far-right vote in Europe

What is the impact of unemployment on far-right party support? This article develops a framework that links unemployment to far-right party support, while taking into account both the heterogeneity of the workforce and the role of labour market policies. More specifically, we focus on unemployment as a driver of economic insecurity and examine its effect on outsider and insider labour market groups. We identify the extent to which two labour market policies—unemployment benefits and Employment Protection Legislation (EPL)—mediate the effect of unemployment on economic insecurity, thus limiting the impact of unemployment on far-right party support. We carry out a large N analysis on a sample of 14 Western and 10 Eastern European countries between 1991 and 2013. We find that unemployment only leads to higher far-right support when unemployment benefits replacement rates are low. The results with regard to the mediating effect of EPL are more complex as EPL only mediates the impact of unemployment when we take into account the share of foreign-born population in the country.

The Effects of Unemployment and Insecure Jobs on Well-Being and Health: The Moderating Role of Labor Market Policies

Labor market insecurities have been growing in Europe and previous research has illustrated that unemployment and insecure jobs negatively affect individuals’ well-being and health. Although empirical evidence suggests that these effects vary substantially across different welfare states, we still know little about the moderating role of specific labor market policies. Taking a cross-national comparative perspective, this article investigates how passive and active labor market policies (PLMP, ALMP) as well as employment protection legislation (EPL) shape the experience of unemployment and insecure jobs. We complement micro data of round 1–6 (2002–2012) of the European Social Survey with time-varying macro indicators of PLMP, ALMP, and EPL. The data include about 89,000 individuals nested in 112 country-rounds and 26 countries respectively. We apply three-level random intercept models as well as pooled linear regression models including country fixed effects. The results show that labor market policies are important in shaping the experience of unemployment, but are less relevant for workers in insecure jobs. Specifically, higher unemployment benefit generosity buffers the negative effects of unemployment on well-being but not health. Moreover, we discuss different interpretations for the finding that higher ALMP expenditures are associated with more negative effects of unemployment on well-being and health. With respect to EPL it is found that in countries with high insider protection, deregulating the restrictions on the use of temporary employment increases the negative effects of unemployment on well-being and health.

Factors Influencing Nascent Entrepreneurship of the Unemployed: The Role of Labor Market Policies

As the levels of unemployment have grown over the last five years, policy makers focused their attention on entrepreneurship as a promise to reduce unemployment. However, policies focused on transi...

THE DRIVERS OF LABOR INCOME INEQUALITY — A LITERATURE REVIEW

Despite a general trend of increasing labor income inequality, there have been differences in the timing, intensity and even direction of these changes across OECD countries. These stylized facts have led to numerous studies about the main determinants of labor income inequality and, as a result, a significant revision of the previous consensus about the key drivers. The most researched channels include skill-biased technological change, international trade, immigration, education as well as the role of labor market policies and institutions.

Aggregate Earnings and Macroeconomic Shocks: the Role of Labour Market Policies and Institutions

I examine the effect of labour market policies and institutions on the transmission of macroeconomic shocks to the labour market, using both aggregate and industry-level annual data for 23 OECD countries, 23 business-sector industries and up to 29 years. I find that high and progressive labour taxes and generous unemployment benefits amplify labour income fluctuations. By contrast, statutory minimum wages reduce the difference in the sensitivity of wages to aggregate shocks between low-wage and high-wage industries. Dismissal regulations are found to mitigate the impact of shocks on both earnings and employment. Moreover, this mitigation effect is greater in industries where firms have a greater propensity to make staffing changes through dismissals.

Aggregate Earnings and Macroeconomic Shocks: The Role of Labour Market Policies and Institutions

I examine the effect of labour market policies and institutions on the transmission of macroeconomic shocks to the labour market, using both aggregate and industry-level annual data for 23 OECD countries, 23 business-sector industries and up to 29 years. I find that high and progressive labour taxes and generous unemployment benefits amplify labour income fluctuations. By contrast, statutory minimum wages reduce the difference in the sensitivity of wages to aggregate shocks between low-wage and high-wage industries. Dismissal regulations are found to mitigate the impact of shocks on both earnings and employment. Moreover, this mitigation effect is greater in industries where firms have a greater propensity to make staffing changes through dismissals.

Wage Dynamics and Economic Development

Wage Dynamics and Economic Development Andrew M. Warner Millennium Challenge Corporation [Comments and Discussion] The primary purpose of this paper is to introduce new data on wages by occupations across fifty-eight countries. The main distinguishing feature of the data is that they were collected with exactly the same methodology at the same time in many countries, thus permitting a high degree of comparability across countries. The data are from surveys of firms, which ask what the firm pays for broad occupational categories, such as office cleaners, secretaries, and managers. The second purpose of the paper is to show empirical evidence from a number of sources on how wage levels correlate with GDP and to interpret this evidence. Various sources of wage data are compared through this lens, both across countries and across time within countries. The paper discusses conditions under which wage growth should keep pace with GDP growth and shows econometric evidence on the determinants of wage levels across countries. This paper begins by showing figures of wages plotted against GDP per worker or GDP per person using a variety of wage data. GDP is used as a common denominator against which wages can be displayed for a variety of occupations across time and across countries. Such plots, however, inevitably provoke criticism: "Of course wages correlate with GDP, since wages are by definition part of GDP." The answer is yes, but not so fast. Among the variables that can break the link between wage levels and GDP are changing participation rates of the labor force, shifting employment between sectors with different wage levels, and changes in the share of labor income in GDP. The paper shows that after these forces play themselves out, simple elasticities between log wage levels and log GDP per worker or log GDP per capita tend to lie in the range 0.6 to 1.0. Some of the wage data presented in this paper show a 1-for-1 elasticity, and some of the regression results show a partial 1-for-1 association after holding constant other variables. [End Page 97] The paper presents econometric evidence to shed light on the forces that drive wage levels around the world. These regressions deal with two methodological issues that need to be confronted by any empirical study of wages and GDP across countries: the bias toward 1 from the fact that wages are part of GDP and the simultaneous determination of wage levels and GDP levels. The paper deals with both issues by using the capital-labor ratio as the driving force behind the determination of wages and GDP. This variable is used both as an instrument for GDP and directly in the estimated wage equations. Some of the important factors found to mediate the wage-GDP relationship are the extent of skill accumulation during growth; the degree of structural change during growth; and, when the wage data are for specific occupations or industries, special factors associated with those occupations or industries. The paper also shows evidence about the role of labor market policies, market competition, and global forces. The paper is organized as follows. The first section discusses the existing wage data. The second section describes the new fifty-eight-country occupational wage data. The third section reviews related studies on wages. The fourth section discusses the evidence on the association between wages and GDP using a variety of data. And the final two sections present and discuss regression evidence in a more formal setting. Data on Wages Until very recently, wage data from different countries were characterized by a low degree of comparability due to differences in the way occupations were classified and wages were measured (sources varied in terms of inclusion of bonuses, in-kind benefits, and pension and insurance contributions). Also data on wages outside of the manufacturing sector were lacking, which is a significant issue because manufacturing can make up a small share of GDP. Data from the 2006 edition of World Development Indicators show that for 1998 the median share...

Unemployment Responses to ‘Skill‐biased’ Technology Shocks: the Role of Labour Market Policy

Do skill-biased shocks that increase the spread of labour productivities, interacting with different policy regimes, explain the rise in unemployment in Europe relative to the United States in the 1980s and 1990s? The hypothesis is an implication of a version of the Mortensen and Pissarides (1994) model of equilibrium unemployment which allows for worker heterogeneity. A calibrated version of the model implies that a similar unemployment increase would have occurred in the United States over this period, given changes in relative productivity by education implied by observed wage changes, had unemployment compensation and employment protection policies been at European levels.

The Swedish Model in an Era of Mass Unemployment

This article can be seen as an introduction to Richard Layard's contribution in this issue and presents the essential features of the Swedish model for full employment and economic stability. It discusses the role of labour market policy for the model and argues that this policy alone is incapable of eliminating mass unemployment.