Discrimination as Collusion in Imperfectly Competitive Labour Markets

ABSTRACT: Despite growing evidence on the potential influence of monopsony power in modern labour markets, the standard monopsony theory of discrimination, at least with respect to pay differences by gender, is inconsistent with the empirical evidence on the association between relative pay and comparative labour supply elasticities. In this paper, we develop a general oligopsony model in which we argue that differences in the conjectural variation parameter can reconcile the empirical evidence with a model of discrimination based on imperfect competition in the labour market. Discrimination emerges from asymmetric collusion in the presence of employer power, without the need to incorporate a Beckerian‘taste for discrimination’parameter.     

Unequal Opportunities for Young People with Immigrant Backgrounds in the Swedish Labour Market

Abstract. This paper investigates labour‐market performance for ‘young people with immigrant backgrounds’ and those ‘born in Sweden with native‐born parents’ in the Swedish labour market. It focuses on young people who were aged 18–20 during 1990, and their labour‐market status after 8 years, in 1998. The results indicate that young people of immigrant descent have lower annual wage income and are at higher risk of not being employed than those born in Sweden with native‐born parents. Differences in human capital characteristics cannot explain these results. Other theories, which stress the effect of discriminatory behaviour and the power of social network composition, are discussed as alternative interpretations. Having one native‐born parent is considered to be important to labour market success. However, having a native‐born father rather than a native‐born mother is associated with better labour‐market achievement.     

Action,Reaction and Resignation: How Refugee Women and Support Organisations Respond to Labour Market Integration Challenges during the Covid-19 Pandemic

Even without the impact of a global pandemic, refugee women face obstacles to their integration into the labour market. Complex integration challenges are situated across different, yet interwoven, levels. These include restrictive policies at the institutional level, limited funding for support measures at the organisational level and a lack of skills at the individual level. Many of these are gendered and specifically affect women. Some might be further intensified by Covid-19. However, the pandemic's effect on the labour market integration of refugee women has yet to be explored.This paper examines specific challenges support organisations and refugee women have faced during the pandemic and their responses to these. Following a process perspective, we utilise a qualitative methods approach with semi-structured interviews. We collected our data in Austria, a European country that hosts numerous refugees and has an elaborate support network.Results show that the external shock of the pandemic amplified the importance of developing digital skills to support post-pandemic labour market integration. In addition, the pandemic exacerbated challenges for refugee women and support organisations. This led to ‘action’, ‘reaction’ and ‘resignation’ responses. We discuss these, and provide avenues for further research and practice.     

The Chimera of Sustainable Labour–Management Partnership

The paper advances a threefold theoretical contribution using a system, society and dominance (SSD) effects framework to show how and why sustainable management–labour workplace partnerships are a chimera. First, managers (employers) find it increasingly difficult to keep workplace bargains with employees (unions) owing to increasingly neoliberal ‘system’ effects associated with capitalism as a globalized accumulation model. Second, workplace mutuality will be rare because of ‘societal’ level effects under voluntarism. Third, ‘dominance’ effects arising from the power of dominant economies and their multinational corporations can inhibit workplace mutuality. Drawing on empirical case study data from Ireland, the future prognosis of management–labour collaboration under neoliberal work regimes is discussed.     

Earning While Learning: When and How Student Employment is Beneficial

Although studies of student employment (‘earning while learning’) mostly find positive wage effects, they do not adequately consider the relation of the employment to the field of study. We investigate how different types of student employment during tertiary education affect short‐ and long‐term labour market returns. Beyond examining differences between non‐working and part‐time working students, we distinguish between student employment related and unrelated to the field of study. Our results show significant positive labour market returns of ‘earning while learning’ only for student employment related to the field of study. These returns consist of a lower unemployment risk, shorter job‐search duration, higher wage effects, and greater job responsibility.     

Talent management as a management fashion in HRD: towards a research agenda

This paper addresses the effects of corporate change programmes on the emotions and ultimately the performance of the so-called ‘middle managers’ within these organizations. Drawing on empirical data from a recent case study in a large engineering company, the paper addresses the extent to which Hochschild's highly original writing on the commercialization of human feeling (1983) and the concept of emotional labour is applicable to managers in today's organizations. Emotional labour is defined as: ‘the management of feeling to create a publicly observable facial and bodily display’ requiring one ‘to induce or suppress feeling in order to sustain the outward countenance that produces the proper state of mind in others’ (Hochschild 1983: 7). The conclusion reached is that emotional labour appears to be a growing but much ignored phenomenon in organizations today, which is worthy of attention and further research by the HRD community.     

Why Do People from Southern Italy Seek Jobs in the Public Sector?

This paper analyses the choice open to a worker seeking a job in the public and private sectors of the labour market. The private sector is identified by a steeper wage profile and by lower job security than the public sector. The reservation wage for the two sectors is calculated in the first part of the paper. The results reveal that the reservation wage for the public sector is higher than that for the private sector. The effect of career prospects, job riskiness and labour demand on optimal time allocation between the search in the two sectors is then analysed. Finally, an empirical analysis is made in order to study Italian workers’ search strategies. It highlights relevant geographical differences which can be interpreted through the theoretical results obtained in the paper.     

Labour Surplus,Worker Rights and Productivity Growth: A Comparative Analysis of Asia and Latin America

How do labour market conditions, trade union rights and job security regulations affect labour productivity? This paper is the first attempt at an empirical analysis of this important question for a large sample of Asian and Latin American countries. We provide new estimates of the rates of surplus labour in 20 countries, as well as detailed tables summarizing their key regulations governing certain aspects of union activity and layoffs. Then we exploit these and other data in an econometric analysis of intercountry differentials in the growth rate of labour productivity in manufacturing during the 1980s. Among the principal results, we find that, while all else remains the same, productivity growth rates are significantly higher in countries with relatively larger labour surpluses, the effects of excess of labour on productivity growth are affected by the strength or weakness of union rights. We also find that the impacts of union rights and job security protections on productivity trends may be either positive or negative, depending on the labour market situation.     

Human Capital,Wages and Family Interactions

The majority of studies of the returns to human capital investment have generally considered the relationship among wages and individuals’ investment in education. However, among factors which increase individuals’ stocks of human capital and affect their labour market performances there are variables linked to the relevant social environment, such as the family. This paper takes into consideration intra‐generational relations which form between spouses through marriage, as well as inter‐generational relationships between parents and their sons/daughters. The empirical work investigates the effects of some family background variables on individuals’ economic performances, using data drawn from the 1995 survey of household income and wealth conducted by the Bank of Italy. The results of the analysis show that individuals’ wages do not depend only on their own human capital endowment, but also on that of other family members (parents and partners).     

Labour Force Transitions among Married Women in the USA

This paper describes the patterns of labour market transitions for a cohort of married women in the USA drawn from the National Longitudinal Survey and observed between 1968 and 1991. The empirical analysis of labour market movements is motivated by human capital theory augmented by demographic and life-cycle considerations. These movements are investigated by estimating competing risk models of labour force spell duration. The results show that the determinants of spell lengths and the determinants of the reasons for spell terminations vary across labour market states. More importantly, both the labour market state in which an individual is observed over her work cycle and the labour market state to which she moves are relevant in shaping her spell length and her tradeable characteristics in the labour market.     

Early Labour Market Returns to College Subject

Abstract. We estimate early labour market outcomes of Italian university graduates across college subjects. We devote great attention to endogenous selection issues using alternative methods to control for potential self‐selection associated with the choice of the degree subject in order to unravel the causal link between college major and subsequent outcomes in the labour market. Our results suggest that ‘quantitative’ fields (i.e. Sciences, Engineering, and Economics) increase not only the speed of transition into the first job and employment probability but also early earnings, conditional on employment.     

Do Foreigners Cushion Native Jobs? The Case of European Regions in the 1990s

Abstract. This paper investigates whether foreigners cushion native labour during the phases of the economic cycle. The theoretical model, based on the work of Blanchard and Katz (Brookings Papers on Economic Activity 0(1): 1–75, 1992), assumes that foreigners supply labour with a higher wage elasticity than natives. The empirical analysis, based on an unbalanced panel of 161 European regions during 1988–97, shows that following a labour demand shock the variability of native employment growth is lower the higher the proportion of foreign citizens in the local labour force. These results suggest that foreigners absorb some of the effects of the shock, shielding natives from its full impact. The analysis also reveals that the main channel mediating this ‘cushioning’ effect is the inter‐regional migration of foreign workers, followed (as a far distant second) by their higher/lower unemployment rates.     

Uncertainty,Flexibility Gap and Labour Demand in the Italian Economy

In this paper we analyse the effects of changes in the degree of uncertainty of the economic system and in the “flexibility gap”, deriving from the combined evolution of the degrees of uncertainty and flexibility of the economic system (in particular, labour market flexibility), on regular and irregular labour demand. On the basis of a simple qualitative model, we give a partial interpretation of some stylized facts of the Italian economy during the last decades. We argue that the low uncertainty and flexibility gap in the 1950s and 1960s, their remarkable increases in the 1970s, their inadequate reduction in the 1980s and the new increase of uncertainty and flexibility gap in the first half of the 1990s, have had a considerable influence on the quantity and quality of the “investment in employment” of Italian economy. The higher degree of uncertainty and the inadequate degree of flexibility of the Italian economic system are likely to have contributed towards the lower regular employment rate, compared to the main industrialized countries, and to high irregular employment. An adequate economic policy for reducing the uncertainty of the economic system together with a structural economic policy for increasing the flexibility of the economic system (in particular, an active labour policy for increasing the flexibility of the labour market), would be likely to produce positive effects on the quantity and quality of labour demand, contributing towards reducing unemployment.     

Temporary Workers in Italy: Who Are They and Where They End Up

Abstract. Temporary work has been an important component of employment growth in Italy since the early 1990s. This paper focus upon labour market transitions of temporary workers in order to test whether temporary work enhances the subsequent labour market chances. We use propensity score matching to compare subsequent employment outcomes of people who have recently acquired a temporary job with those of people who remained unemployed. Individuals' hetero geneity explains a good amount of the raw differences in the subsequent labour market status of temporary workers and the comparison group. Yet there appears to be a sizable net gain from experiencing a temporary work. Our benchmark average estimate is a 30 percentage points rise in the ‘satisfactory employment’ chances 1 year after the start of the temporary work experience. The net gains are the largest for females and adult people and the areas with low unemployment; moreover, gains are the largest for the most recent years in our sample and for those people who were (according to the propensity score estimates) either least or most likely to exit from unemployment.     

The Sound of Silence. Lesbian,Gay, Bisexual and Transgender Discrimination in ‘Inclusive Organizations’

Most studies on diversity and discrimination in the workplace have focused on ‘visible’ minorities such as gender or race, often neglecting the experiences of invisible minorities such as lesbian, gay, bisexual and transgender (LGBT) workers. In this paper we explore the practices of inclusion/exclusion of LGBTs in the workplace in Italian social cooperatives, which are specifically founded to create employment for people who are disadvantaged in the labour market. The study examines how organizations, which have an ethos focused on inclusion and mainly employ workers from specific social minority groups, manage the inclusion of LGBT workers. We also explore the experience of LGBT workers within these organizations. The paper reports that the culture of silence existing in the five organizations studied prevents LGBT employees from constructing a work identity which encompasses their sexual identity and prevents the organizations from achieving their aim of being fully inclusive workplaces.     

Gender Differences in Transitions from Unemployment: Micro Evidence from Finland

Abstract. This paper examines gender differences in labour market transitions in Finland. The empirical analysis carried out using multinomial logit model is based on a 1996 sample of unemployed people. The results indicate that female labour market position is inferior to male and that female labour market outcomes are more responsive to family‐related background characteristics. Previous unemployment is observed to be particularly scarring on male labour market position. According to the results education improves female labour market position significantly. Higher education diminishes gender differences in the labour market and is therefore a particularly equalizing factor.     

Labour Flows as Determinants of the Wage–Price Spiral: An Empirical Analysis for The Netherlands

This study presents an empirical analysis of the influence of labour market flows on wage and price formation. A system of wage, price and employment equations after Nickell (Oxford Bulletin of Economics and Statistics 49: 103–128, 1987) is estimated, including labour flows as indicators of labour market tightness in the wage equation. An impulse response analysis using this system shows how changes in the flow of layoffs (flow from employment to unemployment) may be the basis of short‐run Phillips curve effects in The Netherlands     

The Management of Redundancies in Europe: The Case of Denmark

The paper presents the findings of comparative and interdisciplinary legal and economic study on managing labour redundancies in seven EU member countries. It is structured for comparability between the systems examined. The introductory section contains an account of the evolution of the Danish labour market, with special reference to redundancy trends, of the features of the programmes for managing redundancies, of the roles of firms and the ‘external environment’ in handling workforce adjustments. The second section presents a map of policies that work to prevent labour redundancies (preventive measures) such as flexibility, training etc. Next, the instruments for handling temporary labour redundancies (retentive measures) are examined (e.g. short-time working, temporary layoffs etc.). The following section is devoted to instruments and programmes involved in the management of permanent labour redundancies (expulsive measures), e.g. collective dismissals, severance pay etc. The final section provides an overall assessment of the Danish system for managing labour redundancies, and briefly discusses the national debate on the prospects for reform, in light of the principles and policies of convergence set forth by the European Union.     

The Management of Redundancies in Europe: The Case of Great Britain

The paper presents the findings of a comparative and interdisciplinary legal and economic study on managing labour redundancies in seven EU member countries. It is structured for immediate comparability between the systems examined. The introductory section contains an account of the evolution of the British labour market, with special reference to redundancy trends, the features of the programmes for managing redundancies, the roles of firms and the ‘external environment’ in handling workforce adjustments. The second section presents a map of policies that work to prevent labour redundancies (preventive measures) such as flexibility, training etc. Next, the instruments for handling temporary labour redundancies (retentive measures) are examined (e.g. short-time working, temporary layoffs etc.). The following section is devoted to instruments and programmes involved in the management of permanent labour redundancies (expulsive measures), e.g. collective dismissals, severance pay etc. The final section provides an overall assessment of the British system for managing labour redundancies, and briefly discusses the national debate on the prospects for reform, in light of the principles and policies of convergence set forth by the European Union.     

The Management of Redundancies in Europe: The Case of the Netherlands

The paper presents the findings of comparative and interdisciplinary legal and economic study on managing labour redundancies in seven EU member countries. It is structured for comparability between the systems examined. The introductory section contains an account of the evolution of the Dutch labour market, with special reference to redundancy trends, of the features of the programmes for managing redundancies, of the roles of firms and the ‘external environment’ in handling workforce adjustments. The second section presents a map of policies that work to prevent labour redundancies (preventive measures) such as flexibility, training etc. Next, the instruments for handling temporary labour redundancies (retentive measures) are examined (e.g. short-time working, temporary layoffs etc.). The following section is devoted to instruments and programmes involved in the management of permanent labour redundancies (expulsive measures), e.g. collective dismissals, severance pay etc. The final section provides an overall assessment of the Dutch system for managing labour redundancies, and briefly discusses the national debate on the prospects for reform, in light of the principles and policies of convergence set forth by the European Union.