Reducing unemployment? Examining the interplay between active labour market policies

Active labour market policies (ALMP) are important tools that welfare states utilize to influence the labour market. This study analyses the macroeconomic effects of different types of ALMP spending on aggregate unemployment rates, and especially if there is evidence of interdependencies between policies. The types of policies scrutinized are public employment services (PES), training programs, public job creation and subsidized employment, where the PES is singled out as a crucial factor that moderates the effects of other types of labour market programs. The study examines 19 welfare states between 1985 and 2013, using error correction modelling to separate between short‐ and long‐term effects. The results indicate that PES, training and subsidized employment reduce unemployment in the short‐run, whereas PES and wage subsidies are associated with reduced unemployment when considering long‐term effects. However, PES is found to have indirect effects on other policy types and increased spending on PES is shown to reinforce long‐term effects of training programs.     

Moderate wage increases and flexible labour contracts to protect employment in Colombian manufacturing

Based on conditional and unconditional demands for labour, we exploit the variations of real minimum wage across manufacturing subsectors to present evidence that this variable affects formal employment. The long-term elasticity of labour demand to the minimum wage is around –0.7. Accordingly, increases in the minimum wage lead to job losses for unskilled labour, mainly in plants with fewer than 100; thus, small increases in the minimum wage are desirable to protect employment. Labour demand is highly cyclical: the output elasticity is about 1.7. Thus, some flexibility in labour contracts is desirable to reduce the link between employment and variation of plants’ sales. Open-ended labour contracts might allow reductions of the nominal wage rather than inducing job losses during periods of severe slumps, as has happened during the COVID-19 pandemic.     

THE LABOUR MARKET EXPERIENCE OF CAMBODIANS: POLICY IMPLICATIONS FOR SETTLEMENT SERVICES

A proportion of the annual migrant intake now comprises persons accepted under the Refugee and Special Humanitarian Program entry categories, for reasons other than the direct contribution their skills can make to economic growth. This paper examines the labour market experience of Cambodians, and considers the policy implications for resettlement services for refugees. Cambodians experience high rates of unemployment, and have low levels of English language proficiency, low levels of educational attainment, and few possess post-school qualifications. Reluctance to develop settlement services for refugees, to make special provisions for access within existing services, or even to ensure equitable access to existing services has contributed to the long term economic dependency of a sizeable proportion of this group. It is recommended that they be given greater access to basic, advanced and job related English language tuition. They, and other refugees with similar disadvantages also require special access to job search skills programs, vocational training, and wage subsidy and special employment programs.     

Unemployment and Labour Market Policies: Some Lessons from West Germany

The author points out that West Germany has had low inflation, high industrial efficiency, and good vocational training, but has not escaped rising levels of unemployment. After an analysis of employment trends in Germany since 1945 there is a review of varying government policies in public expenditure and in dealing with unemployment. The author relates demographic trends to employment patterns, and refers to such phenomena as the "dormant labour force", concluding that unemployment will remain high. He reviews the effects of social security benefits and of job creation schemes. He concludes that none of the well-known remedies for unemployment have proved effective in themselves but that short-term job creation schemes are very much a "second-best". He concludes that industrial efficiency — though essential — is not enough in itself and that conquering inflation or providing youth training are shown by the German example to be only a partial help and not a solution to improving employment prospects.     

Transitions to employment from labour market enterprises in Norway

In this article we analyse a labour market programme for partially disabled workers that involves the transition from labour market enterprises to a job in the ordinary labour market. We found that the percentage of these people who found jobs after a maximum two-year programme period increased over time. In 1995, 28 per cent became employed in the ordinary job market after leaving the programme. Exit rates to employment increased to 36 per cent in 1998 and to 39 per cent in 1999. We also found heterogeneity in the job transitions. Employment ratios for men were relatively stable over time, varying between 30 and 40 per cent over the period 1995–1999. For women, however, we found a significant change in employment ratios, with 21 per cent finding a job in 1995 and 40 per cent in 1999. In 1995, employment ratios for female participants were below those of male participants, although there was no difference over the whole period studied (1995–1999). In 1999, the average transition rate to employment was higher for female than for male participants.     

Social Security for the Informal Sector: A New Challenge for the Developing Countries

Informal sector workers constitute a large and increasing part of the labour force in most developing countries. Many of them are not able or willing to contribute a significant percentage of their incomes to finance formal sector social insurance benefits that do not meet their priority needs. Therefore, informal sector workers themselves need to (and have) set up health and other social insurance schemes that better meet their needs and contributory capacity. In addition, special social assistance schemes are necessary to protect the most vulnerable groups outside the labour force. This article also assesses some key implications of these developments for formal social insurance schemes.     

Labour Markets,Care Regimes and Foreign Care Worker Policies in East Asia

This article analyzes the politics of foreign care worker policies in Japan, Korea and Taiwan. In the face of socio‐demographic challenges, these countries have responded differently to the increasing demand for hiring foreign care workers, creating distinct policies with respect to the origins of the foreign care workforce, the size of the foreign care workforce in the labour market, and job specifications. In this article, I argue that the interaction of female employment patterns, the public provision (or lack) of social care, and labour market policies in the care service sector determines the diverging political pathways of foreign care worker policies in these three countries over the past two decades.     

事业单位岗位绩效工资改革的现实审视与思路创新

我国2006年事业单位岗位绩效工资制度改革,旨在建立符合事业单位特点、体现岗位绩效和分级分类管理的收入分配制度。事业单位岗位绩效工资由岗位工资、薪级工资、绩效工资和津贴补贴四部分组成,其中岗位工资和薪级工资为基本工资。目前,我国事业单位已顺利完成了基本工资的套改工作,绩效工资的推进却任重而道远,但改革势在必行,尤其是高等院校,绩效工资的改革受诸多因素的影响和制约,进展缓慢,绩效工资的分配至今尚未真正落实。绩效工资的设计和实施应着眼于高校发展的目标,以岗位设置和聘任为切入点,以绩效考核为重点,以绩效工资分配为落脚点。     

Deciphering Deservedness: Canadian Employment Insurance Reforms in Historical Perspective

In 2012, the Government of Canada introduced reforms to Employment Insurance (EI), Canada's primary income security programme for the unemployed. The changes entailed new requirements for particular types of claimants to apply for and accept jobs of increasingly less pay, and codified the efforts claimants must demonstrate in job searches to maintain benefits. These measures leave many claimants little choice but to accept precarious employment as a means of financial survival. The central claim of the article is that recent EI reforms are not adequately understood as an instance of neo‐liberal activation. Instead, they must be situated in a long history of attempts to categorize the unemployed as deserving or undeserving of income security on the basis of their work history and perceptions of their willingness to work. Through a survey of different periods of unemployment policy in Canada, we demonstrate continuity in authorities' efforts to differentiate the unemployed into categories of worthy and unworthy. Within this history, however, the 2012 reforms are unprecedented in the extent to which they reorient the EI programme to service low wage labour markets. By way of conclusion, we suggest that the current EI programme exacerbates insecurities for the growing segment of workers in precarious employment.     

最低工资管制的就业效应分析

非线性规划分析表明,最低工资管制的就业后果不仅取决于最低工资管制本身, 还取决于外部监管环境,当监管环境强化到一定程度时,最低工资管制的就业冲击会扩大。基于粤闽两省439家企业调查数据的实证分析表明,2008年提高最低工资标准对农民工的就业冲击明显强于2007年,但对城镇劳动力没有造成明显强化的冲击。进一步分析证明,农民工就业冲击的扩大主要源于《劳动合同法》引起的监管环境的强化,而城镇劳动力就业冲击没有扩大主要源于二元就业制度对城镇劳动力利益的优先保护。这提醒我们,《劳动合同法》对就业的影响很可能会通过强化最低工资管制等其他管制措施的效果来间接实现。     

The dynamics of job creation and job destruction in Australia

This paper develops measures of job creation and job destruction (JC&D) based on the methodology initially developed by Davis and Haltiwanger (1990) and using industry employment data from the ABS Survey of Employment and Earnings (SEE), which is available on a quarterly basis between August 1983 and December 2001. It specifically examines the interaction of part‐time and full‐time employment with JC&D processes over the business cycle. Econometric analysis has been conducted to determine the time series properties of cyclical sensitivity and asymmetry. These findings are considered in the context of the likely consequences of the Howard government's Work Choices legislation.     

Gender Pay Differentials in Portugal: Contributions to the Employment Policy Debate in the European Union

Since the implementation of the European Employment Strategy in the 1990s, the issue of gender gaps in the European Union labour markets has been granted a high profile. The Portuguese labour market has performed well on various indicators relating to gender equality, namely, participation and employment rates. Nevertheless, a persistent pay gap remains despite the recent evolution of the labour market, especially concerning the average education level of workers. This article investigates the main factors explaining the gender pay gap across two decades and the way those factors perform along time. We also discuss the means of closing the gap in the context of the European Employment Strategy, considering the lessons from other member states. We used wage decomposition techniques to analyse the relative importance of differences in the productive characteristics of workers, differences in the way men and women are distributed among jobs and the relative importance of discrimination practices. Our findings suggest that most of the pay gap is due to discrimination practices. Individual action by economic agents is insufficient to solve the persistent pay gap. Social partners must incorporate this issue within collective bargaining in order to construct an adequate strategy for reducing the gap, which can only be done by engaging men and women, employees and employers.     

Unemployment services for newly arrived migrants in Sweden: The privatization and rebureaucratization of the introduction programme

A recent policy reform in Sweden reorganized the management of newly arrived migrants' entrance into the labour market, which resulted in the Swedish Public Employment Service being given coordinating responsibility and introducing private service providers. Building on qualitative interviews with public employment officers and private actors, this study focuses on how the political contradictions in the new 2-year introduction programme are managed at the organizational level. In the article, it is argued that although both public employment officers and private actors experience difficulty separating unemployed migrants' need for social support from the workfare ambitions of the programme, aspects of privatization—such as freedom of choice and the service specification—further complicate this situation. Thus, the individualization aspects of the policy should be viewed as countering some of the more controlling aspects of the reform, thus, in effect, neutralizing its liberalizing tendencies.     

Are government wages interlinked with private sector wages?

The ongoing fiscal and financial crisis with significant macroeconomic imbalances in the euro area raises the question in how far public–private wage interaction and even wage spirals contribute to fiscal and competitiveness problems. In this vain we analyse empirically whether the evolution of public sector wages is decoupled from that of the private sector. Using data for number of OECD countries, we find: (i) a strong and extremely robust positive annual contemporaneous correlation of public and private sector wages over the business cycle; (ii) evidence of co-movement of these variables over the medium and long run. From a policy perspective, the findings of this study suggest public wage restraint and private wage flexibility coupled—where needed—with institutional reform to prevent or break public–private wage spirals.     

From quasi‐markets to public–private networks: Employers' engagement in public employment services

This article explores the implications of creating a role for private‐sector partners in public employment services (PES), rather than creating quasi‐markets. It focuses on how the engagement of employers in public–private networks with local government can enhance employment opportunities for disadvantaged welfare recipients but may require a further shift in local public services. The theory relates to contractual arrangements versus network modes of public–private partnerships. Based on surveys among employers and welfare recipients, and interviews with politicians, managers, and frontline workers in five Dutch municipalities, the article provides detailed evidence on innovative and promising cases of public–private networks in employment services. It shows that, under certain conditions, vulnerable jobseekers are better served by a network involving employers than by the standard supply‐driven approach that predominates in quasi‐markets. It also reveals that public and private partners have yet to fully embrace the implications of the network approach for their respective roles. The article contributes to the theoretical debate on public–private partnerships in the context of PES, reflecting on public–private networks as a policy design that could help improve employment opportunities for disadvantaged jobseekers.     

Importing Workfare: Policy Transfer of Social and Labour Market Policies from the USA to Britain under New Labour

Britain's New Labour government has put welfare reform at the top of its political agenda. It has followed a radical “workfare” agenda in relation to labour and social market policies and no longer aims to secure full employment mainly through direct job creation or Keynesian demand management. Instead, it promotes equal opportunity for all based on a contract between benefits claimants and the employment service. The New Deal is at the heart of British activation programmes for the unemployed. American policy paradigms have influenced the design of the New Deal. Policy transfer in activation policies from the USA to Britain is due to institutional similarities in British and American welfare states on the one hand, and to the comparable structure of their labour markets on the other hand. The influence of the European social model on British labour market policies thus remains limited.     

Decent work for sustainable development in post‐crisis Nepal: Social policy challenges and a way forward

Although the Decent Work agenda has received significant attention in the context of sustainable development, the formulation and implementation of appropriate social policies in developing countries remain an underexplored subject. This article responds to this gap and traces country‐specific Decent Work related policies and programs in Nepal—which is recovering from two major crises: a decade‐long armed conflict that ended in 2006 as well as the 2015 earthquake. Drawing on Critical Policy Analysis framework, this article examines how key tenets of the International Labour Organisation's Decent Work platform, namely creation and provision of employment, social protection, social dialogue and rights at work have manifested in Nepal. The findings indicate that while attempts have been made to embrace the Decent Work agenda into social policies and programs, structural instability of political processes means that there is a lack of strategic directions to address a capacity deficit specific to the informal sector and outbound labour migrants. The article makes broader analytical contributions towards evaluating the implementation of social policies driven by the global priority in the context of developing nations with weak governance settings. In countries like Nepal, where the majority of workers are located within the informal sector and as such the administrative reach and effectiveness of Decent Work related social policies designed for the formal sector are limited.     

Inhospitable workplaces? International students and paid work in food services

Most international students in Australia take up paid work during their studies, generally as part‐time employees in low‐wage, low‐skill labour markets. Though little is known about the detail of their work experiences, scattered reports suggest that wages and working conditions are often poor and pose significant issues of social justice. This article examines the characteristics of jobs held by one group of international students, drawing on in‐depth qualitative interviews that form part of a case study of Melbourne's café, restaurant and takeaway food services sector. The evidence indicates that precariousness in employment is widespread in this sector and that it centres on underpayment and non‐payment of wages, in breach of labour regulation. The article suggests that such illegal employer practices are facilitated by use of undeclared casual work. Underpayments are most severe in what are typically regarded as ethnic cafes and restaurants, which concentrate on employment of international students, but they are also widespread in mainstream cafes and restaurants, where international students share precarious work conditions with other workers. The findings underline the case for more concerted research and new policy initiatives.     

Import competition, employment and wages in U.S. manufacturing

This paper uses cointegration analysis to examine if employment and wages in the U.S. manufacturing sector exhibit any long run relationship with import competition. While overall the cointegration analysis supports the results reported in Revenga’s (1992) panel study it indicates that in the long run a positive correlation between import price and employment and/or a negative correlation between import price and wage are sector sensitive. There is also a considerable variation in the magnitude of employment and wage elasticities.     

Agricultural economic reforms,gender inequality and poverty in Senegal

In Senegal, as in many developing countries, the agricultural sector plays a key role in the economy. In addition to supplying food, agriculture is the most important source of employment, especially for women. Through the Plan for an Emerging Senegal (PES), the Senegalese government is implementing an ambitious financing plan to improve the productivity of the agricultural sector and enhance employment opportunities for women. Our study assesses the impact of two PES measures (investment subsidies and an increase in production subsidies for the agricultural sectors) on economic growth, women's employment, poverty and inequality using a dynamic computable general equilibrium model linked to a microsimulation model. The results show that both policies have generally positive effects in reducing poverty and gender inequalities. However, investment subsidies in the agricultural sectors have stronger impacts in reducing gender inequality and poverty in the long term.