Structural shifts in the employment of foreign workers in Austria

The full economic importance of immigration becomes clear only when one examines the concentration of immigrant workers in certain industries and occupations, and this is done in the case of Austria to show the degree of segmentation of the labor market between indigenous and foreign labor. In the course of the 1960s the employment of foreign labor gained importance in Austria. As a consequence, bilateral agreements with the major recruiting countries were made, e.g., with Spain in 1962 and 1969, with Turkey in 1964, and with Yugoslavia in 1966. The reason for the increasing demand for foreign labor was the short supply of indigenous labor due to increasing participation rates and strong economic growth. The demand-pull for foreign labor gained momentum with the onset of the economic boom in 1970, so that by the end of 1973 the number of foreign workers had doubled in comparison to 1970. The 226,800 foreign workers accounted for 8.7% of total employment. The 1974-75 recession and the weak economic development ever since resulted in a decreasing demand for labor. At the same time, the supply of indigenous labor increased as a consequence of a demographic effect and because of increasing participation rates of women. From 1981 to the present, foreign employment decreased again due to the unusually long period of economic stagnation. During 1983, 145,300 foreign workers were engaged, i.e., 5.3% of total employment. The structure for foreign employment now differs greatly from that in the 1960s. The share of women in foreign employment has increased steadily from some 20% in the early 1960s to 31% in 1973 and 40% in 1983 -- a value comparable to the Austrian female share in employment. The reduction of foreign employment since 1973 affected, above all, Yugoslav men. the share of Yugoslavs in foreign employment decreased from 196,300 or 79% in 1973 to 92,200 or 61.7% in 1983. With the duration of foreign employment rising, the disribution of foreign labor over economic branches increased. In the early 1960s the employment of foreign workers was concentrated in 3 branches -- the construction sector (32% of all foreign workers), metal industries (16%), and textile industries (10%). In 1982 only 1/3 of all foreign workers were still employed in these branches as an infiltration by foreign labor had taken place in all sectors. The services sector showed the greatest increase in foreign employment since 1975. There has never been as strong a concentration of 1 nationality in a particular economic branch as in Switzerland, Germany, or France. Case studies in Austria reveal that it was an explicit policy for firms (and also unions and entrepreneur representatives) not to depend on only 1 nationality of foreign workers. According to the case studies, about 1/3 of all foreign workers today occupy jobs which are in direct competition with indigenous labor. Another 1/3 fill jobs which are complementary to indigenous labor. For the remainder it is difficult to say to what extent they belong to one or the other segment of the labor market, because there is no information available on the occupational job structure.     

Devolution of employment and training policy: the case of older workers

The case for the devolution of employment and training programs has traditionally been based on the supply side argument that state and local governments are in the best position to assess the training needs of their disadvantaged workers. We provide a different perspective by focusing on the demand side of the labor market and the link between aiding older workers and fostering economic growth. We illustrate the importance of this focus by examining the labor market in Massachusetts, where the full employment economy of the late 1990s resulted in serious labor supply bottlenecks. Older workers, whose ranks are growing rapidly, provide the largest known labor reserve for meeting these labor supply deficits in the next decade. Tapping this reserve, however, means improving skills, deferring retirement, bringing older persons back into the labor market, and increasing full-time employment. Massachusetts already has the policy tools needed to train older workers to fill emerging job needs, but these policies will need to be substantially upgraded and reoriented. Too little funding, an emphasis on short-term programs, lack of coordination among programs, weak linkages to the private sector, and the limited flexibility of human resources practices in both the private and public sectors have left both government programs and employers ill-prepared to utilize fully the older worker labor reserve.     

Recent developments in the employment and retirement of older workers in Germany

Against a background of an aging population, rising social security costs, and foreseeable labor and skill shortages, there have been public policy changes affecting older workers in Germany. Labor-market related initiatives aim at an increase of labor force participation among this group. Enterprise-related, active age-management strategies aim at improving occupational conditions of aging workers. In this context, prolonging the working life must be seen as one option of "active aging." Another view of the current retirement discussion is the question of how the unused potential of Germany's younger, early-retired seniors can be exploited. Active aging has become a social duty nowadays, with the intention that older persons contribute to society to avoid generational conflicts. In the future, active aging will preserve the competitiveness of enterprises and of the entire economy, despite an aging labor force. But gerontological research points out that different options to carry out individual life plans of active aging are also required. This article reviews the changes in public policies towards older workers and includes the findings of a project that illustrates good practice to combat age barriers in the labor world.     

Aging workers in search of employment & health insurance coverage

Aging workers, ages 55 to 64, face challenges finding employment and health insurance coverage. In the search for employment, they frequently discover that their skills and needs do not match the opportunities in today's work environment. Roadblocks in the search have the potential to negatively affect overall health and well-being. This article examines employment and health insurance challenges faced by aging workers and suggests nursing interventions that will help reduce stress and promote healthy aging.     

No foot in the door: an experimental study of employment discrimination against older workers

Pairs of testers, one aged 57 and one aged 32, applied for 102 entry-level sales or management jobs in the Washington, DC, metropolitan area. Although their credentials described them as equally qualified, the older applicants received less favorable responses from employers 41.2% of the time. Three quarters of these differences occurred before older applicants could fully present their qualifications. The negative employer assumptions about older workers implied by these differences in outcome were seldom explicitly stated.     

Discrimination of older workers in Germany: obstacles and options for the integration into employment

The employment prospects of older workers in Germany are widely endangered because of age discrimination. The main indicator concerning recruitment is that from the age of 45 on the difficulties in finding a new job rise extraordinarily and, accordingly, the duration of unemployment rises. Concerning further training, there is a lack of participation by older workers in vocational training and, additionally, they face numerous risks in the deterioration of their skills. Given the long-term implications of the aging labor force, employers must adapt their approaches to recruiting and training older workers to prevent a further loss of skills and know-how. A comprehensive strategy for integrating older workers and overcoming age barriers in employment is required. To promote recruitment, job-placement programs should be linked more closely to companies and public programs should be targeted to older unemployed workers. To promote further training of older workers, the workplace needs to create a learning environment, introduce a greater variety of tasks, and develop training schemes.     

An alternative look at temporary workers, their choices, and the growth in temporary employment

We examine temporary workers (temps), their choices, and growth in temporary employment. We find that some people choose a temporary job because they desire greater schedule flexibility, particularly students and women with children. For most, however, weaker permanent job opportunities drive them into temporary positions. Using the 1995 and 1997 Current Population Surveys (CPS) we find that both the percentage of the work force in temporary jobs and the absolute number of temps declined when applying a new CPS-based measure of temporary. This is in stark contrast to the rising percentage found in several previous studies when looking only at workers in personnel supply services and clearly questions prior claims and concerns about growth in the temporary work force. The authors thank Petra Todd for her help and valuable suggestions and comments. We are also grateful to Richard Rogerson for his comments. All remaining mistakes are ours.     

Evolution of the professional contingent workforce

The market for professional contingent workers (PCW) has evolved into one of the fastest growing segments of the temporary labor force in the socalled “new economy.” To better understand the evolution and success of the professional contingent market, I utilize a new paradigm. Three dimensions are added: First, supplyside characteristics among PCW are analyzed in aggregation. Second, the role and market contribution of intermediaries, such as staffing groups, are stipulated. Finally, interaction among the parties—PCW, staffing groups, and client firms—is viewed as symbiotic. Within the structural framework established by client firms and staffing groups, PCW create value and scale economies for all parties. Empirical results confirm the hypothesis that PCW professionalism assures the vitality of the market.     

Alcohol and employment in the transition to adulthood

We elaborate the relationship between work hours and alcohol use during the transition from adolescence to adulthood. Both hours of employment and drinking may be products of weak bonds to school and family. Alternatively, work may exert an independent effect on alcohol use by exposing adolescents to opportunities and associates that facilitate drinking. Using longitudinal data from the Youth Development Study (YDS), we present static score regression models showing that long work hours increase levels of drinking during high school. These effects are mediated in large part by work-derived independence from parents, suggesting that a precocious transition to adult roles may be the mechanism connecting work hours and alcohol use. Work effects on drinking are short-lived, however, as adolescent hours of employment do not significantly influence alcohol use after high school.     

Facilitators and barriers to employment: the perspectives of people with psychiatric disabilities and employment service providers

This study examined the perspectives of people with psychiatric disabilities and employment service providers regarding factors that most directly help or hinder consumer efforts to obtain and maintain employment. Forty-four adults with serious mental illness (SMI) (consumers) and 30 providers participated in 12 focus groups across Massachusetts. We began both consumer and provider groups by posing two broad questions: 1) what factors most help people with SMI get and keep jobs (facilitators), and 2) what factors most prevent people with SMI from getting and keeping jobs (barriers)? Data were analyzed qualitatively and both person and environmental factors were highlighted. Among facilitators, participants agreed that quality consumer-provider relationships and individualized employment services are most instrumental in helping consumers achieve employment goals. Participants identified a range of environmental barriers, including issues related to the service system, entitlement programs, non-human resources, and social stigma. Implications for services are discussed.     

The labor market costs of conflict: closures, foreign workers, and Palestinian employment and earnings

In this paper, we provide a lower bound estimate of the labor market costs of the Israeli–Palestinian conflict. The conflict is quantified by the number of overseas foreign workers in the Israeli labor market and the frequency of temporary closures of the West Bank and Gaza Strip. IV estimates, which exploit a source of exogenous variation in the number of overseas foreign workers, yield significant negative effects of the conflict on Palestinian employment rates in Israel and monthly earnings. Our cost-of-conflict estimates are also relevant for the literature on the economics of immigration.     

On the numerical forms of contingent valuation responses

Responses elicited by means of contingent valuation are often expressed in numerical forms termed “prominent numbers”, characterised by inexactness. This might arise because subjects find exactness in response unnecessary or valuation tasks intrinsically difficult. It has been suggested that the provision of numerical cues could influence the ease of completion of the valuation task, and thus its outcome. We describe an experiment undertaken to test three hypotheses. These are, first, that the perceived level of difficulty of the valuation task falls as the exactness of numerical cues provided to subjects increases. Second, it is hypothesised that subjects choose values characterised by higher degrees of exactness if they have been cued by numbers characterised by higher degrees of exactness. Third, the size of the chosen value is expected to be lower if the perceived task difficulty is higher. All three hypotheses are supported. Potential explanations for, and implications of, these findings are discussed.