Youth earnings and labour market volatility in Europe

The authors provide new evidence on youth earnings and labour market volatility, including flows into and out of employment, across Europe during the Great Recession. EU‐SILC data for the period 2004–13 reveal large disparities in volatility levels and trends across European countries. As expected, the Great Recession increased youth labour market volatility, offsetting the trends observed over the previous years of economic prosperity. A variance decomposition exercise points to greater exposure to worker turnover in southern Europe. Fixed effects regression on labour market institutions relates higher unemployment benefits and more stringent employment protection legislation to lower earnings and labour market volatility.     

The imprudence of labour market flexibilization in a fiscally austere world

This article assesses the effects of combining fiscal austerity with policies aimed at reducing labour costs and, in doing so, sheds new light on current policy debates. Taking a global perspective, the authors explore the aggregation problem by proposing a stylized analytical macro‐model with explicit distribution dynamics. In this framework, flexibilization policies that suppress the labour share trigger global feedbacks that result in a downward spiral, with contraction even in export‐led economies. The initial gains of more competitive economies are shown to be ephemeral. In the long term, the world economy is essentially wage‐led and responds positively to coordinated Keynesian stimuli.     

The effect of labour market polarization on university students’ job market‐related outcomes in the Republic of Korea: Implications for youth unemployment

This article aims to assess the effect of the labour market environment on university students’ labour market‐related behaviour in the Republic of Korea. Using data from the country's Graduates Occupational Mobility Survey for 2005–13, the author estimates the effect of macroeconomic variables on university students’ job market‐related outcomes. Results indicate that labour market polarization, as measured by the labour market polarization index developed by Chung and Jung (2016), has a significant effect on both the nominal and masked (through extension of university enrolment and university transfers) unemployment of university students. These findings imply that the labour market structure is a key element in understanding youth unemployment.     

The fallacy of the lump of labour theory: Evidence for Latin America

In a context of population ageing, this article analyses the “lump of labour” theory using empirical evidence from Latin America. Instead of finding a crowding-out effect, estimations using a fixed effects model on a panel of annual data drawn from household surveys in 11 countries between 2002 and 2019 suggest a positive correlation between the employment rates of older adults and young people. Additionally, results show a positive association between the labour incomes of older and young workers. These findings could indicate that an expansion in the employment of older adults maintains economic growth and, therefore, a greater demand for labour, which could be supplied by young people.     

Six central features of the Chinese labour market: A literature survey

In this comprehensive analytical overview, the author pays particular attention to the changing structure of China's employment towards more private‐sector jobs in urban areas; its rising wages and widening earnings inequality; the persistence of its hukou system, causing labour market discrimination, an urban labour shortage and a rural labour surplus; its more market‐oriented wage structure, albeit with segmentation between firm ownership types; its relatively low unemployment; and the relatively weak role of its traditional labour market institutions, including minimum wages and trade unions. The aim is to contribute to the development of more suitable, China‐specific theoretical models and sound policy analysis.     

Precarious lives,precarious labour: family support and young men's transitions to work in the UK

This research is about young people, family support and transitions into the workforce. We provide the results of a comparative, qualitative study with young men in two southern English towns. We argue that relationships of support in families are vital to young people's ability to ‘navigate’ precarious labour market opportunities. As Youth Studies has become increasingly preoccupied with individualism, we are compelled to draw attention to the collective support that is necessary to ‘launch’ the life trajectories of young people who are transitioning into an economic environment marked by insecurity and uncertainty. We conclude with recommendations for future research.     

The labour market flexibility debate in India: Re‐examining the case for signing voluntary contracts

A major focus of India's ongoing policy debate over labour market flexibilization has been the statutory requirement that firms employing 100 or more workers cannot dismiss employees without prior government permission. The case for repealing that requirement (or greatly increasing the workforce threshold) is notably underpinned by Basu, Fields and Debgupta (2009). Here, the author challenges their particular theoretical argument for hiring and firing at will based on the voluntary signing of contracts, demonstrating that their general policy conclusion is logically unsustainable even within the framework of that model. The case for labour market flexibilization through voluntary contracting thus remains unfounded.     

From childhood to young adulthood: the importance of self-esteem during childhood for occupational achievements among young men and women

This study investigates the impact of self-esteem during childhood on men’s and women’s occupational prestige in young adulthood. By combining first-hand information from parents in the Swedish Level-of-Living surveys (LNU) 2000 and their children in the Child-LNU in 2000 and the follow-up study in LNU-2010, we are able to assess how self-esteem during adolescence is related to occupational prestige in adulthood. Multivariate analyses were used to determine whether associations between self-esteem (global and domain-specific) in childhood (aged 10–18 years) and occupational prestige in young adulthood (aged 20–28) exist and, if so, what the magnitudes of these associations are for each respective gender.

For women, there is a positive association between confidence in mathematics and prestige, even when accounting for actual math grades. Global self-esteem is positively related to later occupational prestige as well. For men, self-esteem is unrelated to occupational prestige. Only actual performance in mathematics is important for men’s occupational achievements.

These results indicate the importance of taking gender differences into account when investigating how self-esteem is related to outcomes in young adulthood. A possible implication is the importance of focusing on the development of self-esteem among children, particularly girls, in school.     

Labour market participation among young refugees in Sweden and the potential of education: a national cohort study

This register-based study examined the importance of education on labour market participation among young refugees in Sweden. The study population consisted of unaccompanied (n?=?1606) and accompanied refuges (n?=?4142), aged 23–26 years in 2006–2010, after 7 years of residence in Sweden. Native Swedish, aged 24 years (n?=?347,255) constituted the comparison population, with intercountry adoptees (n?=?6689) as an alternative reference group. Gender-stratified multinomial regression models indicated that unaccompanied and accompanied male and female young refugees had higher risks of being in insecure work force and NEET compared to native Swedes with comparable levels of education. However, young refugees and intercountry adoptees with primary education had similar risks of poor labour market outcomes. The educational differences within each group concerning the risk of being in insecure work force were comparable. With the exception of unaccompanied females, secondary education seemed to be less protective against being in NEET among young refugees compared to native Swedes and intercountry adoptees. We conclude that while young refugees face employment disadvantages, education has the potential of mitigating poor labour market outcomes in this group.     

Segregation,ethnic labour market and the occupational expectations of Palestinian students in Israel

Using data from a large national representative survey of Palestinian high school students in Israel, this study examines the effect of the local labour market and the internal ethnic/religious segregation between Muslims, Christians and Druze, on students' occupational expectations. The data, which were collected in spring 1997, consisted of two types, these being data regarding students, and data regarding schools. The findings show that despite the disadvantages of the Palestinian minority as a whole within Israeli society, students tend to develop high occupational expectations. While the general level of their expectations can be explained by their educational and residential segregation from the Jewish majority, the multi-level analyses suggests that the internal segregation facilitates differential access to socio-economic resources, which generate different levels of occupational expectations between students from various ethnic/religious groups. More specifically, the findings demonstrate that the social and economic differences between Muslims, Christians and Druze are playing a central role in determining students' expectations, acting as a mechanism to preserve social inequality. The gender dimension of the occupational expectations and the influence of die segregation between Palestinian and Jewish students, are also discussed.     

Education and occupational status in 14 countries: the role of educational institutions and labour market coordination

This article explores the role of national institutional factors – more specifically, the level of skill transparency of the education system and labour market coordination – in accounting for cross‐national differences in the relationship between education and occupational status. Consistent with previous research, our findings suggest that skill transparency is the primary moderator. Countries with a highly transparent educational system (i.e., extensive tracking, strong vocational orientation, limited tertiary enrolment) tend to be characterized by a strong relationship between education and occupational status. These findings hold even after controlling for the level of labour market coordination. Nevertheless, we also find that labour market coordination plays an independent role by dampening the effect of education on occupational status. Taken together, these results suggest two quite different policy implications: (1) strengthening the skill transparency of the education system by increasing secondary and tertiary‐level differentiation may strengthen the relationship between education and occupation, regardless of the level of coordination, and (2) increasing labour market coordination could lead to improved social inclusion and a reduction in inequalities related to educational attainment.     

Assessment of a hybrid reform path: Social and labour policies in Uruguay, 1985–2005

Since Uruguay's return to democracy in 1985, a shift in economic and social policy has radically changed the country. The outcomes have been shaped by adjustment to international circumstances “by default”, stop‐go market reforms and the inconsistent pace and content of reforms. Unlike other countries in the region, Uruguay has not followed a resolutely neo‐liberal course, but rather a hybrid one. The end result has been a liberal labour regime coupled with a three‐dimensional social policy balancing the market, the old corporatist welfare State and the new welfare state targeting specific beneficiaries.     

Arenas of comfort and conflict: peer relationship events and young people's educational attainment

Previous research suggests that developments in young people's peer relationships may either compound or alleviate the adverse impacts of other major life changes during adolescence. We explored this proposition with respect to young people's educational attainment upon leaving high school, using longitudinal data from a large cohort of Australian secondary school students (n?=?1612) who have taken part in the Our Lives research study between the ages of 12/13 and 19/20 years. Our analysis focused on the role of peer relationship events such bullying, friendship problems, falling in love, and breaking up with someone. Bullying and romantic involvement were associated with lower odds of receiving a competitive tertiary entrance rank at the end of high school. However, close, resilient friendships – in which status and identity conflicts may be more easily tolerated and resolved – may help to offset the role of these other events. As well as reviewing the consequences of our findings for young people's educational and occupational trajectories in the longer-term, we highlight their implications for future research and policy in this area.     

Quality of employment in Latin America: Theory and evidence

Historically, the development literature concerned with Latin American labour markets has focused on job numbers and productivity. But given the persistence of large shares of informal and now otherwise precarious employment, the authors argue that meaningful analysis also requires consideration of the implications of occupational status for the quality of employment. Based on empirical evidence from recent decades, they conclude that most dimensions of this concept – including social protection – depend on the conclusion of a written contract of employment. This finding leads them to outline policy options for stabilizing formal employment and securing adequate funding for social protection.     

Precursors of Young Women's Family Formation Pathways

We used latent class analysis to create family formation pathways for women between the ages of 18 and 23. Input variables included cohabitation, marriage, parenthood, full-time employment, and attending school. Data (n = 2,290) came from Waves I and III of the National Longitudinal Study of Adolescent Health (Add Health). The analysis revealed seven latent pathways: college-no family formation (29%), high school-no family formation (19%), cohabitation without children (15%), married mothers (14%), single mothers (10%), cohabiting mothers (8%), and inactive (6%). Three sets of variables distinguished between the groups: personal and social resources in adolescence, family socioeconomic resources and adolescent academic achievement, and conservative values and behavior in adolescence.     

Racial discrimination in Britain, 1969–2017: a meta‐analysis of field experiments on racial discrimination in the British labour market

Field experiments represent the gold standard for determining whether discrimination occurs. Britain has a long and distinguished history of field experiments of racial discrimination in the labour market, with pioneering studies dating back to 1967 and 1969. This article reviews all the published reports of these and subsequent British field experiments of racial discrimination in the labour market, including new results from a 2016/17 field experiment. The article finds enduring contours of racial discrimination in Britain. Firstly, there is an enduring pattern of modest discrimination against white minorities of European heritage in contrast to much greater risks of discrimination faced by the main non‐white groups, suggesting a strong racial component to discrimination. Secondly, while there is some uncertainty about the magnitude of the risks facing applicants with Chinese and Indian names, the black Caribbean, black African and Pakistani groups all face substantial and very similar risks of discrimination. Thirdly, there is no significant diminution in risks of discrimination over time either for Caribbeans or for South Asians as a whole. These results are broadly in line with those from the ethnic penalties literature, suggesting that discrimination is likely to be a major factor explaining the disproportionately and enduringly high unemployment rates of ethnic minorities.     

Access to the labour market for gays and lesbians: Research review

ABSTRACT

This article reviews findings of scientific studies looking into the bias that gay men and lesbians face when accessing the labor market. Studies in this topic were scarce before year 2000, but a considerable body of literature appeared in the Western countries in the recent years. When summed up, the findings provide robust evidence that lesbians and gay men face negative bias when accessing employment. The magnitude of the bias varies considerably across contexts. Different labor market outcomes of gay men and lesbians are also partially caused by differences in household specialization between different-sex and same-sex households. Future research needs to address the contextual differences in bias against gay men and lesbians.