Share Of Employment Research Articles

Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan

Purpose: This study examines the impact of trade liberalization (TL) on female labor force participation (FLFP) during the trade regime period in Pakistan, using sectoral panel data of the manufacturing sector for the period of 1990-2005. Design/Methodology/Approach: We employed panel fixed effects (FEM) and Instrumental-variable (IV) regression models for empirical analysis. Findings: Our study reveals that trade liberalization and FLFP are associated. Trade liberalization increases FLFP in the manufacturing sector. The results of both measures of FLFP (i.e., the share of female employment, and female-to-male ratio) verify each other findings. Our findings are robust to the inclusion of various control variables. Furthermore, our IV analysis also confirms that liberalization has given rise to female employment in the manufacturing sector. Our policy implication is that the government should liberalize trade sectors that can help to enhance FLFP. Originality/Value: This study adds to the existing literature by exploring the association between TL and FLFP in the manufacturing sector of Pakistan by utilizing a better proxy of reductions in import tariffs for TL. The reduction of import tariffs is a policy-based measure that captures the pure impacts of trade policy as compared to outcome-based measures (i.e., trade ratios). We also consider the whole trade regime as a sample period (i.e., from 1990-2005) to examine the core impacts of the trade regime, as import tariffs drastically reduced during this period. Furthermore, we use two measures of FLFP for the analysis, i.e., the share of female employment, and the female-to-male ratio. Lastly, our use of sectoral panel data strengthens the empirical analysis.

THEORETICAL APPROACHES TO THE STATE POLICY OF FORMATION, ACCUMULATION AND USE OF HUMAN CAPITAL IN THE CONDITIONS OF SOCIO-ECONOMIC DEVELOPMENT

Realization of the ability to work as a qualitative characteristic of the workforce allows us to understand the reasons and driving forces for the development of the innovative economy. The purpose of the article is to generalize and improve theoretical approaches to the state policy of formation, accumulation and use of human capital in the conditions of socio-economic development. The theoretical and methodological basis of the research was the fundamental provisions, concepts, hypotheses and approaches to the management of human capital for the benefit of innovative development, set forth in the works of the classics and modern domestic and foreign scientists. The research is based on the methods of comparative, dynamic and comparative analysis, decomposition method, monographic research. Collective human abilities, distinguished by the continuity of cognition, understanding of the acquired knowledge, and their creative use are the labor potential of the socio-economic system, which characterizes the possibility of the development of this system. The conversion of human capital into labor resources is determined by the labor force index. The labor force is the able-bodied part of the country's population, which, due to mental, physiological and intellectual qualities, is able to produce material goods or services. Labor resources include the population capable of working. These are, first of all, people of working age, as well as working pensioners, teenagers, and immigrants. In the system of state statistics, the labor force is called "economically active population". A feature of developed countries is a high share of employees, less developed - self-employed, primarily due to the large number of self-employed households. It has been established that countries that rely on social and economic development on human capital formed through the education system become leaders. The functions of education are realized in various forms of individual benefits and public benefits at the corporate, regional, national and global levels. Public goods are recognized as collective goods that relate to the social. They characterize the development of society in general: social solidarity, equality in rights and self-determination of people, social and geographical mobility (freedom of movement), general knowledge and the possibility of participation in the discussion. Common goods can only be created jointly. Some are aimed at the individual (eg human rights) and some at groups of people (eg laws).

Macroeconomic exposure of developing economies to low-carbon transition

The low-carbon transition is a specific type of rapid structural change where low-emission industries grow and high-emission industries decline due to deliberate policies, changing preferences and technological change. Developing countries’ macroeconomic exposure to this transition depends upon their reliance on carbon-intensive industries as a source of foreign currency, fiscal revenue, employment and wage income. Identifying these different dimensions of countries’ exposure is important because different green policies need to be applied in different contexts, and the results of these policies will be more or less effective according to countries’ idiosyncrasies.This paper aims at providing estimates of countries’ macroeconomic current exposures to the low-carbon transition. We develop a method to evaluate countries’ external, fiscal and socioeconomic exposure, and, considering their capacity to adapt their productive structure, we analyse countries’ vulnerabilities and risks in these different dimensions. Using a Hybrid World Input-output table for 189 countries, we identify the carbon-intensive industries, and then we estimate each country’s direct and indirect dependence on these industries, considering countries’ dependence for raising of foreign currency to analyse the external exposure, government revenue to evaluate the fiscal exposure, and the share of wages and employment to analyse the socioeconomic exposure.Results show that countries present different degrees of exposure in different dimensions, and the degree of exposure varies significantly when indirect impacts are considered. Moreover, by analysing countries’ capacity to adapt their production structure and resilience factors, we evaluate to what extent countries’ macroeconomic exposure imply a higher vulnerability to the green transition process.

Does FDI have a social demonstration effect in developing economies? Evidence based on the presence of women-led local firms

We hypothesize that foreign direct investment (FDI) benefits female entrepreneurs in developing economies through a “social demonstration effect,” namely, by exhibiting norms and practices supporting gender equality and promoting women’s role in business. Results based on data from 44,418 firms in 91 developing economies show that, at the country level, increased employment share of foreign invested firms has a positive association with women’s entrepreneurship, namely, it boosts the presence of female leaders in new ventures and small businesses, as foreign firms help break local conventions unfavorable to female entrepreneurs. This positive impact is more evident when women face greater institutional barriers. However, at the industry level, foreign employment share becomes nonsignificant, and it has a negative association with the presence of female entrepreneurs in countries where women face greater barriers. We reason that this is due to occupational competition: The more disadvantaged women are in a country, the greater the advantage foreign firms possess in attracting women to work for foreign firms instead of pursuing their own entrepreneurial opportunities. The practical implication of our study is that governments can reformulate FDI policies with a view to fostering women’s entrepreneurship.

What explains the increase in trade union density and female share of union members in the United Kingdom in 2017–2020?

Trade union density increased for three consecutive years in the United Kingdom between 2017 and 2020. This contrasts with a general decline in union membership since 1979. Since union density continued to fall amongst male employees in 2017–2020, the overall increase was entirely attributable to females. This paper explores the factors which explain why there was an increase in overall union density after a period of decline (for males and females) and why union density evolved so differently for males and females. Using decomposition methodologies, we find that the increase in union density in 2017–2020 was not due to a higher propensity to unionise within particular groups or across all employees. Instead, the principal driver of the overall rise in 2017–2020 was an increase in the proportion of employment in certain public sector organisations. The largest contributor to the difference across males and females was increases in the share of employment in more unionised occupations amongst female employees and decreases amongst male employees.

Financing constraints and female share of employment: evidence from China

ABSTRACT This paper constructs a theoretical model where brain skills and capital are complementary, and female workers have a comparative advantage in brain-intensive occupations compared with brawn-intensive occupations. Financing constraints reduce the capital intensity and the demand for brain-intensive occupations, thus reducing the demand for female workers. Using data of manufacturing firms in China from 2004 to 2007, this paper finds that financing constraints reduce the female share of employment in firms. This effect is greater in industries with higher external finance dependence.

Private and Public Digitalization and Economic Resilience during COVID-19 Pandemic

The COVID-19 pandemic represented a tremendous shock for both public and private sectors and put pressure on the economic environment alongside national healthcare systems. Our article examined the economic resilience during the COVID-19 pandemic in the EU Member States and assessed if countries with more intense use of digitalization instruments (e-government features, e-commerce, ITC skills, etc.) in both public and private sectors registered a lower economic decline during 2019–2020. Our approach was based firstly on statistical correlation analysis applied to several indicators obtained from Eurostat and European Commission. Secondly, we elaborated different regional models of economic and social homogenous characteristics that could be found among EU Member States based on a hierarchical cluster analysis model applied to several structural socio-economic and digitalization indicators. The main conclusion was that there is a strong positive correlation between the share of ITC employment and the share of ITC in GDP, and the level of digital skills for individuals and the share of companies with high intensity of digitalization.

The Structural Transformation of Thailand: The Role of Policy Distortion

Thailand and the Republic of Korea were developing at a similar pace during the 1960s. However, the Republic of Korea’s economic development rapidly expanded from the 1970s onward, leaving Thailand lagging far behind. This paper investigates the labor productivity slowdown in Thailand using a nine-sector, structural transformation model setting with policy distortions. Our findings suggest that the economic underdevelopment of Thailand, when compared with the Republic of Korea, lies in a tendency toward relative labor productivity slowdowns resulting from both direct and indirect policy distortions in the agriculture sector. The agriculture sector has consistently been overlooked by the government in favor of the infant industrial sector for many decades. Moreover, as the agriculture sector accounts for a relatively considerable share of employment, the magnitude of the negative impact from policy distortions is amplified, inducing a delay in Thailand’s structural transformation.

The STEM Wage Premium Across the OECD

Using data from the Program for the International Assessment of Adult Competencies, this paper compares the earnings premium and employment share of jobs in Science, Technology, Engineering and Mathematics (STEM) across 11 member countries of the Organisation for Economic Co-operation and Development. The results reveal that the STEM wage premium is higher in the United States than in any of the other comparison countries, despite the fact that the U.S. has a larger share of workers in STEM jobs. We also find evidence that the premium varies significantly across STEM sub-fields and education levels, and that the premium tends to be higher in countries with lower unionization rates, less employment protection, or a larger share of employment in the public sector.

Public education expenditures, growth and income inequality

This paper analyzes the relationship between public education spending, long-run growth and income inequality. We propose an endogenous growth model with occupational choice and an endogenous supply of teachers and education quality. We show that endogenous school quality alters the shape of those relationships in a way that has new policy implications. First, growth depends on the level of public education expenditures and on the shape of the human capital distribution. Second, the relationship between public education and inequality can be either positive or negative. Calibrating our model to US state data, we find that a significant share of states faces a trade-off between increasing growth and decreasing inequality through public education spending. We find that this trade-off is overall more likely in states with higher public education expenditures, teacher employment share and relative wage, and intergenerational mobility. Finally, the existence of such a trade-off depends on how public education spending is financed.

Determinants of High-tech Exports: New Evidence from OECD Countries

High export capacity is a key element for sustained long-term economic growth. To achieve this goal, the technological sophistication of exports plays a key role. To enhance exports with a high level of technological sophistication, it is critical to target key drivers of high-tech exports. Hence, this article studies the determinants of international trade flows of manufactures according to their technological content in the case of OECD countries. Given a panel of 35 countries and 15 years (2004 to 2018), panel data estimation techniques are used in the analysis. In addition, two alternative measures have been considered to measure the importance of high-technology content manufacturing exports: High-tech manufacturing exports and high-tech manufacturing exports as a share of total employment. Results obtained show strong evidence of the relevance of variables such as gross fixed capital formation on total employment, the land area per capita, the percentage of university graduates relative to the population group, R&D expenditure in terms of GDP, the stock of inward foreign direct investment in terms of GDP, imports of high-tech manufactures as a share of GDP, the quality of national governance and regulation, the country population and EU membership as determinants of technology-intensive exports. Moreover, the findings have significant implications for trade and industrial policies in OECD countries, to ensure the effectiveness of policies targeting the technological upgrading of exports.

An Evaluation of the Structural Change of the Agrarian Sector in Kerala

Purpose: The study made an effort to look into Kerala's agricultural development patterns, growth performance, and structural changes. In Kerala, commercial cash crops like rubber and coconut replaced food crops including lentils, rice, tapioca, cashew nuts, and ginger, causing a shift in the cropping pattern in favour of non-food crops at the expense of food crops. Agriculture has become more vulnerable as a result of the shrinking cultivable area, the predominance of small and dispersed holdings, the fall in agricultural labour, and cultivator use. Methodology: The methodology used in this study is Descriptive Research, which is mainly concerned with secondary data sources. Books, newspapers, journals, articles, and government websites are used to gather secondary data. The information has been collected by using the keywords - sectoral wise changes, structural transformation, agricultural development, commercial agriculture, and agribusinesses. The required articles were obtained by electronic search and manually screened. Originality: The significance of the current study rests in the fact that the preceding studies have not yet addressed the entire structural transformation of Kerala's agrarian sector in a thorough and comprehensive manner, making it necessary. Value: By examining the productivity of the sector, the study will aid in determining the change in trends of agriculture scenario in Kerala and the problems of agriculture sector in Kerala. Findings: The study discovered that while the employment share of the primary sector has not decreased in pace with the substantial reduction in its part of the GSDP. Furthermore, there has been only a little increase in the percentage of income from the secondary sector in the GSDP due to the excess labour force moving from the primary to the secondary sectors, which has led to abundance in the latter. In Kerala, the changes in land use patterns over the past few decades were unparalleled in terms of deforestation, growth in current fallow land, expansion of non-agricultural land, and decreases in net sowing and gross crop area, which led to a drop in cropping intensity. Paper Type: Descriptive study

The trade-off between health system resiliency and efficiency: evidence from COVID-19 in European regions

The objective of this paper was to investigate the existence of a trade-off between health system resilience and the economic efficiency of the health system, using data for 173 regions in the European Union and the European Free Trade Association countries. Data Envelopment Analysis was used to measure the efficiency of regional health systems before the COVID-19 pandemic. Then, a spatial econometrics model was used to estimate whether this measure of efficiency, adjusted for several covariates, has a significant impact on regional health system resilience during the COVID-19 pandemic, measured by the number of COVID-19 deaths per hundred thousand inhabitants. The results show that COVID-19 death rates were significantly higher in regions with higher population density, higher share of employment in industry, and higher share of women in the population. Results also show that regions with higher values of the health system efficiency index in 2017 had significantly higher rates of COVID-19 deaths in 2020 and 2021, suggesting the existence of a trade-off between health system efficiency and health system resilience during the COVID-19 pandemic.

IT Shields: Technology Adoption and Economic Resilience during the COVID-19 Pandemic

We study the labor market effects of information technology (IT) during the onset of the COVID-19 pandemic, using data on IT adoption covering almost three million establishments in the US. We find that in areas where firms had adopted more IT before the pandemic, the unemployment rate rose less in response to social distancing. IT shields all individuals, regardless of gender and race, except those with the lowest educational attainment. Instrumental variable estimates–leveraging historical routine employment share as a booster of IT adoption– confirm IT had a causal impact on fostering labor markets’ resilience. Additional evidence suggests this shielding effect is due to the easiness of working-from-home and to stronger creation of digital jobs in high IT areas.

The Impact of Coal Activity on Local Revenues for Elementary and Secondary Education in Appalachia

Coal mining has a deep history in the Appalachian region, where some local economies have heavily relied on coal production. While coal employment in the region has generally been in a long-term decline, there is variation across counties, with coal employment still representing a large share of total employment for some counties. This paper explores how coal activity—measured by coal employment, coal employment as a share of total employment, coal production, and the number of coal mines—impacts locally provided funding for K-12 education. Using county-level data that spans from 1995 to 2016, results indicate that increases in coal activity have a positive and significant impact on local revenues per student though effects are modest. The findings are robust across different specifications. The implication is that declines in coal activity can hamper school funding, in turn affecting adequate investments in education that are essential for economic development.

The knowledge economy and development in light of the economic shocks in Arab world

With the beginning of 1990, world moved towards knowledge in the economy as sustainable development engine depending on production factors and economic growth rate based on four basic pillars of the knowledge economy: (1) economic incentive, (2) institutional system, (3) education, human resources and innovation, (4) communication technology information. In light of the economic shocks facing the Arab world, as the most recent was the COVID-19 pandemic in 2019, which led to decline in economic growth rates for Arab countries. The main objective of study is the effect of economic shocks on the knowledge economy and development in Arab countries during (1991: 2020). The study relied on secondary data and used descriptive economic analysis and the statistical analysis represented by the simple regression method. The study showed the most important factors affecting on an employment share of real GDP as an indicator of the production inputs contribution and technological progress in real GDP. The results of the study cleared a positive relationship between economic shocks and the barrel of oil price, as well as it showed the difference in the impact of the barrel oil price on the employment's share of real GDP in dollars in the Arab countries. The study indicated the importance of foreign direct investment in advancing development in the Arab world.

IT shields: Technology adoption and economic resilience during the COVID-19 pandemic

We study the labor market effects of information technology (IT) during the onset of the COVID-19 pandemic, using data on IT adoption covering almost three million establishments in the US. We find that in areas where firms had adopted more IT before the pandemic, the unemployment rate rose less in response to social distancing. IT shields all individuals, regardless of gender and race, except those with the lowest educational attainment. Instrumental variable estimates–leveraging historical routine employment share as a booster of IT adoption– confirm IT had a causal impact on fostering labor markets’ resilience. Additional evidence suggests this shielding effect is due to the easiness of working-from-home and to stronger creation of digital jobs in high IT areas.

Skill bias, financial frictions, and selection into entrepreneurship

Financial frictions adversely affect productivity by discouraging entrepreneurship, which is often measured by the self-employed. This paper distinguishes different types of self-employment when studying this question. Using micro data for 77 countries from all income levels, we show that employers’ labor shares are increasing with GDP per capita, whereas own-account employment (self-employed without employees) is decreasing. We also find almost universally negative selection on education into own-account status relative to wage workers and positive selection into employers. To quantitatively match these facts, we introduce skill-biased technological change across countries in an occupational choice model with financial frictions. Our model predicts an average of 19% output gains in low-income countries from removing financial frictions. In contrast, an alternative model with skill-neutral technological change cannot match the high own-account employment share in low-income countries, thus overestimating the output gains by 13 percentage points.

Development of Kazakhstan’s Regional Labour Markets in the Digital Economy: Factors and Conditions

Changes in the labour market are an inevitable result of technological progress. In these cir-cumstances, the effectiveness of public policy will depend on the correct projection of the future bal-ance in the labour market and on the drivers that can affect the technological development, elimination or preservation of jobs. Based on correlation and regression analysis, the study examines the influence of various factors on the transformation of regional labour markets in the context of digitalisation. The con-ducted calculations revealed that the human capital and entrepreneurial activity in the region influence the labour market the most. The calculated coefficient of elasticity shows that when the share of students in the population increases by 1 %, the value of the variable of the share of IT employees in the total num-ber of employees increases by 0.15 %. Increase in the ratio of small enterprises to the labour force by 1 unit shall increase the share of IT employees in the total number of employees by 0.002 %. However, at present, information and communication infrastructure is not a key factor in the development of labour market and new sectors, expanding opportunities for digital entrepreneurship, as well as online and of-fline training. Also, region’s innovative potential (level of business innovation in the regions by techno-logical innovations) is not a significant indicator of the intensity of development of new economic sec-tors and the formation of a regional base of accumulated knowledge and competencies. It was concluded that for the developing economy of Kazakhstan, the improvement of information and communication in-frastructure based on digital platforms is more rational for the labour market’s further development.

ПОПУЛЯЦИОННЫЕ СОЦИАЛЬНО-ЭКОНОМИЧЕСКИЕ ПРЕДИКТОРЫ ЗАБОЛЕВАЕМОСТИ ВЗРОСЛОГО НАСЕЛЕНИЯ ИНСУЛИННЕЗАВИCИМЫМ ДИАБЕТОМ В РЕГИОНАХ

A steady increase in the incidence of type 2 diabetes and aggravation of socio-economic problems substantiate the need to analyze the population attributable risk factors for diabetes, determined by the status of the regional economy standard of living. The purpose of the study was to assess the socio-economic gradient of incidence of non-insulin dependent diabetes mellitus in adults in two regions within one federal district in Russia, differing in the level of economic performance and well-being of the population. Material and methods. The retrospective analysis for the period 2005-2019 includes official statistics on the gross regional product and average monthly income per capita, the share of persons with income below the subsistence minimum, the employment index, the share of employees with higher professional education, and Gini coefficient in the Republic of Tatarstan (RT) and the Republic of Mari El (RME). The study evaluated the normality of distribution, dynamics in indicators by the trendline coefficient of determination (R2), statistical significance of the differences in time series. The indicators were analyzed calculating the Spearman coefficient with a 95% confidence interval (CI) year-on-year and with a lag (lag effect). At all stages, the value of statistical probability (p) was indicated, the critical level of which was assumed to be 0.05. To identify multiple internal relationships between socio-economic indicators, they were grouped by the component method and factorial complexes were identified. Based on the results of the multiple correlation and regression analysis, models of impact of these complexes on type 2 diabetes incidence have been constructed. The study used Statistica 6 program and AtteStat Add-in Microsoft Excel, version 12.0.5. Results. In 2005-2019, the increase in type 2 diabetes incidence in adult population in the Mari El Republic was determined to be statistically significant and higher (p=0.01) than the one in the Republic of Tatarstan, where there was only an upward trend in the indicator. The socio-economic indicators of the Republic of Tatarstan were higher and characterized by higher growth rates than the ones in the Mari El Republic (p=0.0008) with a weak interregional convergence. Differences in the closeness and degree of significance of correlations between diabetes incidence in adult population and macroeconomic indicators between regions were determined to be insignificant. The main difference was the magnitude of the lag in incidence, reaching 9-10 years against the socio-economic indicators, the grouping of which by the component method in both regions combined into a generalizing economic factor, with the exception of Gini coefficient. The ranks and magnitude of the contribution of factorial complexes had the following interregional differences: in the Republic of Tatarstan, Gini coefficient was more significant in diabetes incidence, whereas in the Mari El Republic it was the generalizing economic factor. Conclusion. Results of the analysis of the nature of interrelations (strength, statistical significance, vector and prolongation) of the new cases of type 2 diabetes and socio-economic indicators in the regions, depending on the state of the economy and the standard of living, are the basis of the effective programs on decreasing morbidity.