Structural invariance and stability of sense of coherence: A longitudinal analysis of two groups with different employment experiences

This 5-year follow-up study investigated the structure and the factorial invariance of the 13-item sense of coherence (SOC) scale (Antonovsky, ) in two employment groups (unemployment/lay-off experiences vs. continuous full-time employment) and across two measurement times. In addition, the stability of SOC between these two employment groups was compared. The postal questionnaire data was collected twice, in 1992 and in 1997. The participants were Finnish technical designers (N=352) aged between 25 and 40 years in 1992. A total of 51% of the investigated participants had been employed full-time during the 5-year follow-up period and 49% had been unemployed and/or laid off for a total period of at least one month during the follow-up. The confirmatory factor analysis indicated that the SOC scale measured one general second-order SOC factor consisting of three, first-order factors of meaningfulness, comprehensibility, and manageability. The results also indicated that the scale was best used as an 11-item measure. The factorial invariance of the scale across time and across the two employment groups was supported by the data. Unexpectedly, the stability of SOC did not differ between the two employment groups. However, those participants who had experienced unemployment and/or been laid off during the follow-up period had a weaker SOC at both measurement times than those who had been employed throughout the follow-up.     

Weather‐related Employment Subsidies as a Remedy for Seasonal Unemployment? Evidence from Germany

Many European countries try to reduce seasonal unemployment by subsidizing short‐time employment during the winter period. Despite such costly efforts, pronounced seasonal unemployment patterns continue to exist. This puts doubts on the effectiveness of such policy interventions. This paper provides a first empirical assessment of the effectiveness of different subsidy schemes by exploiting the institutional variation in a German subsidy scheme that applies to the construction sector and the variation in local weather and business cycle conditions across 20 years. The findings confirm that generous short‐time subsidies reduce individual lay‐off probabilities in the case of poor weather conditions. However, the link between weather conditions and seasonal lay‐offs is much less strong than expected, making planned capacity reductions the main suspect for causing seasonality in unemployment patterns.     

Effects of Changes in the Unemployment Insurance Eligibility Requirements on Job Duration — Swedish Evidence

This paper investigates the impact of the unemployment insurance (UI) entrance requirement on employment duration among earlier unemployed in Sweden. I exploit changes in the rules taking place in 1994 and 1997 to study behavioural adjustments in the timing of job separation in 1992, 1996, and 1998, respectively. Performing across‐year analyses with years involving different working requirements, I find some evidence of clustering of job exits at the time of UI qualification. By using predicted hazard rates for each week, I calculate an approximate 2.3‐week extension in average employment duration between 1996 and 1998, due to the 5‐week prolonging of the entrance requirement.     

Sense of coherence and ill health among the unemployed and re-employed after closure of an assembly plant

The aim of this study was to investigate the relationship between employment status, ill health and sense of coherence(SOC). A cross-sectional sample of the former workers at the closed down Volvo Kalmar plant in Sweden was used. A questionnaire was mailed to all identified subjects 2 years after the closure of the plant. Responses were obtained from 344 persons, of whom 173 were re-employed and 92 were unemployed. They answered the questionnaire anonymously on background variables, SOC and ill health (physical and psychological symptoms). A notable difference was found between the re-employed and unemployed, where the unemployed reported symptoms significantly more often as well as a significantly weaker SOC. A main finding in a four cell model indicated that unemployment had a rather low impact on symptoms in the presence of a strong SOC. Structural equation modelling (SEM) was performed with simultaneous analysis of the unemployed and reemployed. The SEM analysis indicated that SOC seemed to have a greater impact on psychological symptoms among unemployed compared with re-employed persons. However, it should be noted that the present study does not allow for the determination of cause-effect relationships.     

Sense of coherence and ill health among the unemployed and re-employed after closure of an assembly plant

The aim of this study was to investigate the relationship between employment status, ill health and sense of coherence(SOC). A cross-sectional sample of the former workers at the closed down Volvo Kalmar plant in Sweden was used. A questionnaire was mailed to all identified subjects 2 years after the closure of the plant. Responses were obtained from 344 persons, of whom 173 were re-employed and 92 were unemployed. They answered the questionnaire anonymously on background variables, SOC and ill health (physical and psychological symptoms). A notable difference was found between the re-employed and unemployed, where the unemployed reported symptoms significantly more often as well as a significantly weaker SOC. A main finding in a four cell model indicated that unemployment had a rather low impact on symptoms in the presence of a strong SOC. Structural equation modelling (SEM) was performed with simultaneous analysis of the unemployed and reemployed. The SEM analysis indicated that SOC seemed to have a greater impact on psychological symptoms among unemployed compared with re-employed persons. However, it should be noted that the present study does not allow for the determination of cause-effect relationships.     

Youth Unemployment and Opportunities in the Labour Market – The Myth of Lifelong Hysteresis

This paper examines whether the level of risk of unemployment for recently trained youths in the labour market has lasting effects upon their employment opportunities: will a cohort that enters the labour market during a period of high unemployment have a permanently higher rate of unemployment than one that joins the labour market during a period of low unemployment? The connection between occupational choice and employment status after graduation is also examined The analysis encompasses teachers, engineers and unskilled workers. The conclusion is that troughs and highs in the labour market have a significant but not necessarily permanent effect upon unemployment and placement in different industries.     

STAUNCHING EMIGRATION FROM EAST GERMANY: AGE AND THE DETERMINANTS OF MIGRATION

Following the unification of Germany in 1990, eastern wages and unemployment both rose rapidly. I demonstrate that rising wages reduced eastern emigration greatly, while rising unemployment had little effect. This reflects the behavior of the young, who are very sensitive to source region wages, and relatively insensitive to source unemployment. I show that most of the effect of source unemployment comes from the contemporaneous effect on those laid‐off, who are more likely to be older. I find that, compared to stayers, young emigrants are much more skilled, older emigrants are slightly more skilled, and commuters are not more skilled, as measured by education and pre‐move wages. My conclusions are based on a comparison of results from aggregate inter‐state migration data and individual data from the eastern sample of the German Socio‐Economic Panel for 1990–2000. (JEL: J61, P23)     

Implicit theories of leadership: Stability and change over two decades

Much has changed in the last 20 years, but have people's naïve conceptions of leaders changed as well? Paralleling Offermann et al.'s (1994) study of the content of implicit leadership theories with new samples, the present study investigates ILT stability and change across a 20-year period. Results indicate that, as in 1994, Sensitivity, Dedication, Tyranny, Charisma, Strength, Masculinity, and Intelligence were confirmed as ILT factors. Analyses revealed a new factor, Creativity, and the rearranging of some characteristics across factors. The nine-factor, 46-item scale was confirmed with an independent sample, yielding superior fit indices to the eight-factor solution. This supports the view of ILTs as having both remarkably stable elements despite organizational and societal changes as well as contextually-sensitive elements. Open-ended characteristics had no references to females despite reference to males, as in 1994; thus, “think leader, think male” appears to persist in terms of naïve conceptions of leadership.     

Confirmatory factor analysis and factorial invariance of the impact of information technology instrument

Organizations increasingly evaluate information technology in terms of its impact on the individual and his/her work. Academics have shown increased attention to developing measures of technology success in terms of impact on work. One of these efforts produced an instrument that measures how extensively information technology applications impact task productivity, task innovation, customer satisfaction, and management control. These constructs reflect perceived usefulness of information technology application for work. This paper reports on confirmatory analysis and factorial invariance tests of the impact of information technology instrument. The recommended four-factor instrument contains 12 items, seems to be factorially invariant across two samples from the US and Mexico and across two managerial levels, and has high reliability and validity.     

UNEMPLOYMENT INSURANCE AND CULTURAL TRANSMISSION: THEORY AND APPLICATION TO EUROPEAN UNEMPLOYMENT

This paper emphasizes the two‐way causality between the provision of unemployment insurance and the cultural transmission of civicness. The returns to being uncivic are increasing in the generosity of unemployment insurance; but this generosity is decreasing in the number of uncivic individuals. In this context, I determine the evolution of preferences across generations and show that cultural heterogeneity is sustained over the long‐run. The dynamics of cultural transmission can generate a long lag between the introduction of unemployment insurance and an increase in people's willingness to live off government‐provided benefits. Hence, it offers an explanation to the ‘European unemployment puzzle’ due to the coexistence of generous unemployment insurance and low unemployment in the 1950s and 1960s.     

Employment Protection and the Incidence of Unemployment: A Theoretical Framework

Abstract. The present paper aims to analyse the effects of employment protection on a heterogeneous labour force. To this end, a standard matching model with employment protection has been extended to allow for the existence of two types of workers differing from each other only in the probability of becoming less productive while holding a job. In working out the model it turns out that in equilibrium workers with a relatively higher probability of becoming less productive face both a higher turnover and a longer duration of unemployment. Therefore, employment protection here raises the unemployment rate of this worker category, a result which looks consistent with consolidated evidence but contrasts with standard theoretical results.     

Dimensions of the psychosocial work environment in a sample of the US metropolitan population

The present study investigates the dimensional structure of the psychosocial work environment as assessed by Karasek's job characteristics scales and a set of factorial scales derived from the Dictionary of Occupational Titles (DOT) observers' ratings of occupational characteristics for census occupations. Scale scores on the Karasek and DOT were linked to information on occupation from the Epidemiologc Catchment Area (ECA) study sample. Scale intercorreladons and factor analysis were performed on those ECA subjects who reported ever having a full-time job (n=11,789). DOT'sS Substantive Complexity scale was positively correlated with Karasek's Skill Discretion and Decision Authority scales, and DOT's Physical Demands and Hazards scale was positively correlated with Karasek's Physical Demands scale. In addition, the DOT system compared to the Karasek system seems to assess psychosocial work domains less characteristic of traditional industrial jobs (interpersonal stress, expressive work). The content validity of the Karasek scales might be increased with the assessment of these domains. Giving support to Karasek's Demand/Control Model, the factor structure of the psychosocial work enviromnent in the probability sample of five US metropolitan populations yielded two major dimensions: Control, and Physical Demands.     

The Quality of Industrial Relations and Labour Market Performance

Abstract. Using data from 19 industrial countries for the period 1985–2002, this paper analyses whether the quality of industrial relations affects unemployment and employment rates. To measure the quality of industrial relations, we use the results of surveys in which senior business executives characterized the industrial relations of their countries. Controlling for the impact of major labour market institutions, the business cycle, the level of economic development, unobserved country effects, as well as endogeneity, we find that cooperative industrial relations are likely to lower unemployment and to increase employment. The effects appear to be large, particularly among young people.     

Do Benefit Hikes Damage Job Finding? Evidence from Swedish Unemployment Insurance Reforms

Abstract. In 2001 and 2002, Sweden introduced several unemployment insurance reforms. A major innovation in the first reform was the introduction of a two‐tiered benefit structure for some unemployed individuals. This system involved supplementary compensation during the first 20 weeks of unemployment. The 2002 reform retained the two‐tiered benefit structure but involved also substantial benefit hikes for spells exceeding 20 weeks. This paper examines how these reforms affected transitions from unemployment to employment. We take advantage of the fact that the reforms had quasi‐experimental features where the ‘treatments’ differed considerably among unemployed individuals. We find that the reforms had strikingly different effects on job finding among men and women. The two reforms in conjunction are estimated to have increased the expected duration of unemployment among men but to have decreased the duration of unemployment among women. The overall effect on the duration of unemployment is not statistically different from zero. However, the reforms reduced job finding among men who remained unemployed for more than 20 weeks.     

A Note on Immigrant Representation in Temporary Agency Work and Self‐employment in Sweden

Abstract. This is a note on the immigrant representation in two forms of atypical employment in Sweden: self‐employment and temporary agency work. The employment rate among non‐western immigrants is substantially lower than among natives and using register data for the population in Sweden who were employed in 1999, we find that immigrants are over‐represented in both these forms of atypical employment. Immigrants from Asia are over‐represented in both forms of employment, whereas immigrants from South America are over‐represented among temporary agency workers but underrepresented among the self‐employed. These findings can be interpreted as an indication of that temporary agency work and self‐employment are used as alternatives to regular employment by groups in which unemployment is high.     

THE POLITICAL ECONOMY OF FLEXICURITY

We document the presence of a trade‐off in the labor market between the protection of jobs and the support offered to unemployed people. Different countries’ locations along this trade‐off represent stable political‐economic equilibria. We develop a model in which individuals determine the mix of job protection and support for the unemployed in a political environment. Agents are heterogeneous along two dimensions: employment status (insiders and outsiders) and skills (low and high). Unlike previous work on the political economy of labor market institutions, we emphasize the role of job protection and unemployment benefits in the wage‐setting process. A key implication of the model is that flexicurity configurations with low levels of job protection and high levels of support to the unemployed should emerge in the presence of a highly educated workforce. Panel regressions of countries’ locations along this institutional trade‐off are consistent with the implications of our model.     

The Role of Entrepreneurship in the Context of Career Trajectories: Moving Back into Wage Employment or into Unemployment?

This study investigates patterns of movement from self‐employment to wage employment or to unemployment in Belgium. Non‐parametric techniques and complimentary log–log analyses are used to determine the significance of stable individual traits (e.g. gender) and of time‐dependent characteristics (e.g. family and organizational context, labour market mobility) in moving back to wage employment or to unemployment. Evidence is provided on the possibility of entrepreneurship acting as a ‘steppingstone’ between long‐term unemployment and paid work. Yet, significant relationships also emerge between ex‐ante time spent in unemployment and the possibility of continued unemployment upon self‐employment exit.     

Work Absence — A Signalling Factor for Temporary Workers?

This paper investigates whether low levels of absence increase the probability of permanent employment and reduce that of unemployment for Swedish temporary workers. We investigate two reasons for absence: worker sickness and sickness of a dependent child. Using a competing risk estimation model, we find that sick leave reduces the probability of permanent employment for women and increases the probability of unemployment for men. Absence due to child sickness increases the risk of unemployment for women. Although the influence of sick leave varies substantially among different temporary jobs, replacement and probation workers are generally the most affected.     

Efficiency Wage,Fixed Employment Costs,and Dual Labour Markets

The standard efficiency wage‐based explanation of labour market dualism hinges on the existence of differences in monitoring across sectors. The paper proposes fixed employment costs as an alternative source of wage differentials for homogeneous workers. It shows that firms with larger fixed costs pay higher wages in order to elicit more effort from their workers, and tend to have higher capital/labour ratio and labour productivity. The model generates both involuntary unemployment and involuntary confinement in the secondary sector: high effort–high wage jobs are preferred to low effort–low wage jobs and either are preferred to unemployment. The proposed framework can also account for the various types of treatment of marginal jobs in primary sector firms envisaged by Doeringer and Piore (Internal Labour Markets and Manpower Analysis, 1971). In particular, an increase in fixed costs beyond a certain level may induce primary sector firms to restructure, segment production, and enter the secondary sector, thus converting their jobs into secondary jobs. From a welfare point of view, we cannot state in general the desirability of subsidizing fixed employment costs; however, we show that an employment subsidy financed by a wage tax is able to increase employment with no loss in terms of production.     

Measurement Equivalence Using Generalizability Theory: An Examination of Manufacturing Flexibility Dimensions

As the field of decision sciences in general and operations management in particular has matured from theory building to theory testing over the past two decades, it has witnessed an explosion in empirical research. Much of this work is anchored in survey‐based methodologies in which data are collected from the field in the form of scale items that are then analyzed to measure latent unobservable constructs. It is important to assess the invariance of scales across groups in order to reach valid, scientifically sound conclusions. Because studies have often been conducted in the field of decision sciences with small sample sizes, it further exacerbates the problem of reaching incorrect conclusions. Generalizability theory can more effectively test for measurement equivalence in the presence of small sample sizes than the confirmatory factor analysis (CFA) tests that have been conventionally used for assessing measurement equivalency across groups. Consequently, we introduce and explain the generalizability theory (G‐theory) in this article to examine measurement equivalence of 24 manufacturing flexibility dimension scales that have been published in prior literature and also compare and contrast G‐theory with CFA. We show that all the manufacturing flexibility scales tested in this study were invariant across the three industry SIC groups from which data were collected. We strongly recommend that G‐theory should always be used for determining measurement equivalence in empirical survey‐based studies. In addition, because using G‐theory alone does not always reveal the complete picture, CFA techniques for establishing measurement equivalence should also be invoked when sample sizes are large enough to do so. Implications of G‐theory for practice and its future use in operations management and decision sciences research are also presented.