Subjective Measures of Employment Opportunities and Interregional Migration

Abstract. Empirical studies of interregional mobility routinely use regional unemployment differentials to characterize economic incentives to move between regions. In this paper, we present a new regional labour market indicator computed from survey data in which respondents are asked to evaluate local employment opportunities in their resident municipality and surroundings. The subjective measures of satisfaction with local employment opportunities have positive and significant impact on interregional migration flows, also when controlling for traditional measures of regional labour market conditions, including the regional unemployment rate. Contrary to most European studies, we find that regional labour market conditions have a strong effect on interregional migration flows.     

Descrepancies between Supply and Demand and Adjustment Processes in the Labour Market

Changes in demand and supply in segments of the labour market will affect the labour market position of workers with an educational background in a related field of study. In one economic tradition such discrepancies between supply and demand are thought to lead to unemployment in the case of excess supply and to unfilled vacancies or skill shortages in the case of excess demand. The other neo‐classical oriented tradition expects wage adjustments to take fully account of these labour market imbalances, leading to higher wages for studies with excess demand and lower wages in case of excess supply. In practice the labour market might, on the one hand, be more flexible than suggested by the first approach, but on the other hand adjustment might be incomplete and not only wages but also other aspects of the employment relationship might be affected by a friction between supply and demand. This study examines the relationship between discrepancies between labour demand and supply on the one hand and manifestations of these tensions in the labour market experience of school‐leavers on the other hand. To investigate this relationship, a random coefficient model has been used, which allows for different adjustment processes for the various educational types, but still makes full use of all the information available in the data. The analyses provide insights about the importance of different adjustment processes and their complementarity and substitutability. We show that on average, supply surpluses lead to pressure to accept jobs at a level which is lower than the school‐leavers educational level, jobs with relatively low wages, and jobs with part‐time contracts. A direct link between supply surpluses and unemployment is only found for a few specific fields of study. Unemployment seems to occur mostly when school‐leavers do not take temporary jobs or jobs below their educational level in case of excess supply.     

The relationship between perceived employability and subsequent health

Being capable of getting new employment may enable an employee to cope with turbulent situations or deteriorating job conditions. Individuals who have higher perceived employability are likely to appraise a situation at work more favourably, and consequently experience better health and well-being. The aim of the present study was to investigate the relationship between perceived employability and subsequent health, while controlling for baseline health, background factors, and work environment exposures. The study is based on 53 items in the National Working Life Cohort in Sweden from two data collections (2004 and 2005), comprising 1918 individuals. Forced entry hierarchical regression analysis showed that, after controlling for demographics, psychological demands, control, and ergonomic exposures, perceived employability was positively associated with global health and mental well-being, but unrelated to physical complaints. When baseline health status was added, perceived employability was still a significant predictor of two out of three outcome variables. Individuals with higher perceived employability had a tendency to report better health and well-being a year later. It is concluded that how an employee perceives his or her possibilities in regard to acquiring new employment is relevant for well-being at a later stage. Perceived employability, which has been little studied before, is therefore a useful concept in health promotion, both at the individual and at the organizational level.     

Personality and Labour Market Income: Evidence from Longitudinal Data

This study contributes to the literature on how personality is rewarded in the labour market by examining the relationship between personality and labour market income. Our results suggest that adulthood extraversion is positively associated with income when education, work experience, and unemployment history, measured prospectively from longitudinal data, are controlled for. In addition, childhood constructiveness indicating active and well‐controlled behaviour has a positive association with income in adulthood.     

A Forecast Model for Unemployment by Education

ABSTRACT We present a dynamic forecast model for the labour market: demand for labour by education and the distribution of labour by education among industries are determined endogenously with overall demand by industry given exogenously. The model is derived from a simple behavioural equation based on a strong relationship between the “strength” in the struggle for jobs of an educational group, and the change in relative supply. This relationship proves to be significant in the data. Furthermore, when used to forecast employment by education on real data, the model predicts reasonably well even for educational groups, where the initial forecast year is a change point for unemployment.     

The relationship between perceived employability and subsequent health

Abstract

Being capable of getting new employment may enable an employee to cope with turbulent situations or deteriorating job conditions. Individuals who have higher perceived employability are likely to appraise a situation at work more favourably, and consequently experience better health and well-being. The aim of the present study was to investigate the relationship between perceived employability and subsequent health, while controlling for baseline health, background factors, and work environment exposures. The study is based on 53 items in the National Working Life Cohort in Sweden from two data collections (2004 and 2005), comprising 1918 individuals. Forced entry hierarchical regression analysis showed that, after controlling for demographics, psychological demands, control, and ergonomic exposures, perceived employability was positively associated with global health and mental well-being, but unrelated to physical complaints. When baseline health status was added, perceived employability was still a significant predictor of two out of three outcome variables. Individuals with higher perceived employability had a tendency to report better health and well-being a year later. It is concluded that how an employee perceives his or her possibilities in regard to acquiring new employment is relevant for well-being at a later stage. Perceived employability, which has been little studied before, is therefore a useful concept in health promotion, both at the individual and at the organizational level.     

Examining the Econom(etr)ic Relevance of Discretizing Panel Data: an Application to the Belgian Labour Market

ABSTRACT: The object of this paper is to explore how to use administrative data for econometric purposes when these data measure total annual duration spent in various states. A basic issue addressed is whether the information extracted through categorising continuous data actually defines an economically meaningful concept of an individual position on the labour market. The main findings are that discretization indeed leads interpretable transitions on the labour market, and that the mobility between positions rather low in Belgium.     

Labour Costs and Employment in the Service Economy

Abstract. In this paper we analyse the direct relationship between the cost of labour and employment in diverse service industries. In contrast to most existing studies, we assume that the tertiary sector is highly differentiated h terms of reactions to both supply and demand factors. The study suggests that we must reasses the relevance of demand factors, but it also confirms that the real cost of labour is a crucial determinant of certain kinds of service employment. Country comparisons have made US sensitive to the fact that the relationship between employment and the cost of labour is far from being globally similar. Each country exhibits behaviour in line with the peculiarities of its labour market.     

The Cyclical Volatility of Equilibrium Unemployment and Vacancies: Evidence From Italy

In this study, we explore the fluctuations of unemployment and vacancies in the Italian labour market over the last 20 years. Relying on the available sources of data for unfilled job openings, we find that even in Italy, similarly to other developed countries, there is a clean evidence of the unemployment volatility puzzle. In other words, we empirically assess that the tightness indicator is significantly more volatile than productivity over the whole period. In addition, on the theoretical ground, we show that a matching model with segmented labour markets and on‐the‐job search has the potential to provide a rationale for this pattern.     

Impact of Multiple Labour Market Programmes on Multiple Outcomes: The Case of Norwegian Youth Programmes

Abstract. Unemployed youth in Europe have access to a variety of labour market programmes, the intention of which is to improve the chances of employment or education. A particular two‐stage modelling and estimation procedure designed to analyse the effects of multiple programmes on multiple outcomes is used to control for selection bias. The model is applied to non‐experimental longitudinal data on young unemployed individuals in Norway in the early 1990s, a period during which unemployment was rising. Separate analyses for subgroups indicate that employment programmes increase the full‐time employability of females but not of males, and for the younger age group, but not of those over 20 years of age. Training programmes have no positive effects, irrespective of subgroup. Vocational programmes are counterproductive for teenagers, which is the group at which it is targeted.     

Do Interactions between Finance and Labour Market Institutions Affect the Income Distribution?

This article analyses the linkages between financial development, labour market institutions and market income inequality for 18 Organisation for Economic Co‐operation and Development countries over the 1980 to 2012 period. With the help of a dynamic panel data model with an interacted term, one crucial contribution of this article is to analyse the interacted impact of labour market institutions (i.e. union density and employment protection legislation) on the one hand and financial development on the other hand on the income distribution. Our results indicate that changes in the financial/credit and labour market regulation affect the income distribution. Estimates of the marginal effects show that by increasing labour market regulation one also weakens the impact of the flexibilization in the financial/credit market on the increase in income inequality.     

The Productivity Slowdown in Postwar Greece

Abstract. This article examines the two contrasting phases of labour productivity in postwar Greece. We present a model of trended labour productivity that synthesises mainstream technical factors, institutional arguments based on the social structure of accumulation framework, and Abramovitz's catch-up hypothesis. The model is empirically estimated and the labour productivity growth is found to be sensitive to changes in capital intensity, proxies of power relations in the labour market, and a productivity convergence indicator.     

Labour Market Policies in Times of Crisis: A Reaction Function Approach for the Period 1985–2010

This article examines the reaction function of labour market expenditure to unemployment in 24 OECD countries, over the period 1985–2010, using the OECD panel data. The level of public debt is also introduced as a factor that is likely to influence these expenditures. Using a fixed‐effect model with interaction terms, this research focuses on two periods of crisis (1992–93 and 2007–09). The results confirm the counter‐cyclical variation of labour market policy expenditures. Nevertheless, the sensitivity of labour market expenditure to the economic cycle has in general decreased and the policy mix has changed. This could result from the important labour market reforms undertaken in the last 20 years.     

Wage Determination in Post-War Italy

ABSTRACT: A bargaining model is proposed and tested in order to explain the irrelevance of the general labour market conditions to wage settlements in the post-war Italian economy. The model is a “right to manage model”, but the solution cannot be improved, being both on the labour demand curve and on the contract curve. The reason for such an outcome is that both firms and unions have priorities, and distinguish the labour force between insiders and outsiders. Different definitions of insiders are used, but in the postwar Italian economy the employees and ex-employees of the industrial sector appear to be the share of the labour force which have been better protected by both contractual parties.     

Employment Spells and Previous Labour Market History

ABSTRACT: In this paper the author analyses the influence of the past labour market history of an individual on the length of employment spells he will experience. Most empirical works emphasize the so called Markov model, which implies that the probability of an individual changing state depends only on the state currently occupied. Using data on the labour market histories of a sample of unemployed persons, we specify and estimate a reduced form model where job separation rates arc a function of the entire labour market history and of variables related to personal characteristics and labour market conditions. The empirical analysis supports the claim that transition probabilities are related to past labour market history.     

Forecasting the Educational Structure of Occupations: A Manpower Requirement Approach with Substitution

ABSTRACT: Manpower requirement forecasts are usually based on the assumption that discrepancies between supply and demand do not lead to adjustment processes at the labour market. We show, however, that even if the market mechanism functions completely, manpower requirement forecasts remain important information. On this basis, a manpower requirement approach is developed which incorporates the possibility of substitution processes at the labour market.     

Labour Policy and Determinants of Employment and Wages in a Developing Economy with Labour Shortage

Using data from a sample of 1,099 workers, this paper investigates the determinants of employment and wages for workers in the United Arab Emirates. The paper further examines the wage distribution and the decomposition of the wage gap between the public and the private sectors. Results of the study are consistent with the dual labour market theory and indicate that the labour market in the United Arab Emirates is segmented based on sectors (public versus private) and types of workers (nationals versus non‐nationals). The study concludes with a discussion of the implication of these findings for the effectiveness of labour and economic policy.     

Gender and Promotion in the Academic Labour Market

Several hypotheses are put forward with respect to promotion differentials between males and females on the academic labour market. These hypotheses are tested on the basis of a longitudinal data set of academic staff members at Utrecht University. The methods applied include Poisson regression, Negative Binomial analysis and Probit analysis. Full-time instead of part-time work and a Ph.D. degree prove to be efficient but not sufficient instruments for women on the academic labour market to catch up with men with respect to promotions.     

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.