Turnover and Excess Worker Reallocation. The Veneto Labour Market between 1982 and 1996

This research exploits a large matched employer–employee data set for an Italian region, the Veneto, that is presented here for the first time, in order to analyse job and worker flows. In a first part, the paper computes worker turnover, job turnover, and excess worker reallocation over a time span of 14 years. The results are discussed, and comparisons are made between the quantitative features of the labour market in the Veneto region and those of other labour markets. In a second part, turnover and excess worker reallocation are related to search costs, and new empirical evidence is presented that helps in understanding the connections between search activity, unemployment, and the economic cycle.     

Explaining Labour Turnover: Empirical Evidence from UK Establishments

Abstract. This paper investigates the determinants of labour turnover using establishment‐level survey data for the UK. The main contribution of our paper is that it estimates the impact of wages, unionization, training and other aspects of working conditions on labour turnover. Our main findings are: (i) turnover is inversely related to the relative wage; (ii) unionism reduces turnover: this is due mainly to the ability of unions to improve conditions of work rather than the voice‐exit model of Freeman; (iii) there is a complex relationship between turnover and training; and (iv) turnover is lower in the ‘high‐tech’ sector.     

A model of completed length of service

The measurement of labour turnover is important both because high turnover is regarded as a sign that something is wrong in a firm and also because quantitative information is important in planning recruitment programmes. This paper describes a statistical technique which has proved useful for the measurement and prediction of turnover.     

A Stock-Flow Model to Analyse and Forecast Labour Market Variables

ABSTRACT: In confronting problems of employment and unemployment, students of the labour market, and economists in general have focused mainly on the determination of the level of such variables. Much less attention has been paid to such questions as: how many persons have entered the area of employment and the labour force in various time periods, and how many have exited; their sex and age distribution; and the determinants of the level and structure of flows amongst the various labour market conditions. Yet it appears superfluous to underscore the relevance of such questions. To illustrate, suffice it to recall that in Italy, the present level of employment is essentially the same today as it was in 1961‘; but this has not prevented whole generations of young people from 'stably’entering the employment area, albeit with varying degrees of difficulty in different periods. As for the numerous statistical surveys of labour market flows in a range of countries, and as for the works of job search theorists², it should be observed that such surveys and analyses essentially concern conjunctural phenomena. Consequently, these authors have paid no attention to the distinction between short-run turnover and generational turnover, or to the extremely singular characteristics of the statistical data on flows. An attempt to construct labour market models that present an integrated version of the 'structural’aspects of the market in terms of stock and flows is therefore lacking. The present study sets forth various objectives and is divided into two parts. In the first, an analysis of several controversial terminological aspects of the concepts of stock and flow is presented, and an attempt is made to point out those theoretical structures which have been responsible for the long-prevailing neglect of the labour market flows, particularly long-run flows. Then the problem of defining the concepts of short-run and generational turnover will be confronted in light of an analysis of the statistical methods used in the surveys; finally, a methodology for measuring generational flows is proposed. In the second part of the paper a model based on generational flows, as previously defined, will be presented together with a computational procedure capable to produce long run estimates of alternative scenarios of labour demand and supply and of the structure of employment by sex and age. A brief summary of some of the empirical results obtained applying our model and forecasting procedure to the Italian labour market will also be discussed in the final part of the paper.     

Re‐examining the Glass Cliff Hypothesis using Survival Analysis: The Case of Female CEO Tenure

We use the glass cliff to study the appointment and employment duration of 193 female CEOs between 1992 and 2014 in a sample of large, small and mid‐size North American firms. Consistent with the glass cliff, we find that women are appointed as CEOs in precarious situations. However, we find female CEOs are 40% less likely to face turnover at any point after appointment than male CEOs. This conflicts with an implication of the glass cliff and differs significantly from existing research which shows that female CEOs have only a slightly lower risk of turnover than male CEOs. Our larger, more recent sample captures changes in the labour market that explain the departure from the results of earlier studies. We find evidence that the lower turnover rate of female CEOs is related to firms’ desire to avoid the negative publicity that would accompany their termination, and we also show that greater education has a positive impact on CEO job security.     

How Much Does Hiring and Firing Cost? Survey Evidence from a Sample of Italian Firms

We analyse the Italian labour market, which is typically considered to be highly regulated. We focus on the costs imposed on firms by the institutional environment in which they operate, and on the adjustment strategies that they pursue as a result. We have followed two complementary approaches: the analysis of the development of the laws relating to hiring and firing, together with a set of interviews of 61 manufacturing firms. This also allows us to quantify the extent of turnover costs on the total labour costs. Hiring costs, which include recruiting and training, range between 2.0 and 2.6 months of labour costs; firing costs range from less than half a monthly labour cost to 20 months of labour costs in cases of conflict.     

Factors Affecting the Job–to–joblessness Turnover and Gender

This paper explores gender differences with respect to the factors affecting the job–to–joblessness turnover. It casts light on the characteristics of those men and women who experience the highest propensity of their job ending in joblessness, taking into account the reasons for the job loss. The findings highlight the determinants of gender differences in labour turnover patterns.     

Emotional labour,collectivism and strain: a comparison of Turkish and U.S. service employees

ABSTRACT

Global growth in service employment highlights the need to understand how cross-cultural differences impact emotional labour processes for service employees. The current study investigates these differences by examining the impact of national and individual level collectivistic values on emotional labour strategies and employee strain (emotional strain, turnover intentions, job satisfaction, and organisational commitment). Cross-sectional data was collected from U.S. (n?=?191) and Turkish (n?=?249) customer service employees. Results indicate that collectivism impacts the process model of emotional labour via direct and interaction effects. Collectivism was associated with higher emotional labour engagement and lower employee strains. Surface acting was uncorrelated with Turkish employees’ strain, though moderated regression analyses revealed interaction effects associated with national and individual level collectivism. These results suggest that collectivistic values may serve as a buffer against harmful effects associated with surface acting. This study is the first to directly compare emotional labour processes in U.S. and Turkish service employees and expand the process model of emotional labour to include collectivism. The theoretical implications of this expanded model are discussed, along with future research directions and practical applications of these findings.     

Employment Protection and Labour Market Segmentation: the Fiftieth Anniversary of the “Cassa Integrazione Guadagni”

Abstract. This paper analyzes the evolution of the Cassa integrazione guadagni (CIG), according to 7 different theoretical models, which offer a classification for the different cases of application that have developed since its introduction, as well as for the many policy targets pursued by the Public Authorities. Then an assessment of the economic role of CIG is attempted, divided into three separate sections. The first is aimed at evaluating the economic long-term effect on macro performance, where the crucial balance is between a “crowding-out effect” on private investment and a “profit-maintenance effect” by lowering the effective wage rate. The second section approaches the employment consequences of the CIG by examining a second crucial balance: that between the protection granted to the employed and the obstacles raised for the employment of the non-employed (above all, freezing workers' turnover). This issue is tackled too in terms of the insider-outsider theory, showing the possible relevance of CIG in segmenting the labour market and keeping the wage rate dynamics. Finally the paper briefly examines the profound revision of the CIG recently approved by the Italian Parliament, aimed at avoiding excessive costs while enhancing labour mobility.     

Pathways to productivity improvement

A study of productivity in the Machine Tool industry has just been published by the Engineering Employers Federation (EEF). As a member of the Productivity Steering Group, information was available to one of the authors, in an unusually detailed and validated form for the twenty or so individual companies, (though they remain anonymous). It was thought worthwhile to apply methods developed in the Economics and Statistics Department of British Aerospace to this data in order to give pointers to the factors explaining productivity differences. The particular methods referred to were those of the Diagnostic Chart, though considerably simplified to match the data available, and multiple regression analysis. Particular care is necessary in applying the latter technique in productivity analysis if spurious results are to be excluded. The conclusions were as follows: the most favoured path to improved productivity is via increased turnover; changes in productivity are reflected mainly in changes in the ‘profit’ element of value added rather than in the labour cost element; the major factor distinguishing low from high productivity companies is an excess of the manual work force in relation to turnover; increased fixed assets favours increased labour productivity; increased commitment to R & D favours increased labour productivity; these conclusions are, of course, deduced from a study of the machine tool industry in particular, but may well be of applicability to other industries.     

Physicians’ Labour Supply: The Wage Impact on Hours and Practice Combinations

Abstract. It is a stated aim to improve physician services in underserved sectors and areas. Increased wages is one instrument for boosting the hours provided by the personnel to the prioritized sub‐markets. This study applies an econometric framework that allows for non‐convex budget sets, non‐linear labour supply curves and imperfect markets with institutional constraints. The labour supply decision is viewed as a choice from a set of discrete alternatives (job packages) in a structural labour supply model estimated on Norwegian micro data. An out‐of‐sample prediction is also presented and evaluated by means of a natural experiment.     

Multiple Rhythmically Varying Prices,the Timing of Factor Demands and Induced Technological Change

ABSTRACT: This Paper the existing literature on optimal capital utilisation and shiftwork patterns by arguing that labour is not the only input to exhibit a price which varies over the time of day week or year Indeed in certain situations as in the w e of capital intensive industries which are heavy consumers of electricity labour costs may not even be the most important consideration The introduction of a second varying input price can completely alter the optimal operating times of production units Once this extension has been adopted it is a fairly easy final step to demonstrate that some firms face a strong inducement to develop technologies which allow them to use their capital and labour independently This type of technological change has become commonplace in recent years but largely unexplained by the existing literature These developments have important implications for the organisation of work patterns and the flexible use of the labour input     

The hypothesized effects of ability in the turnover process

Findings from studies that have investigated the relationship between task-relevant ability and turnover have been inconsistent. A process model is presented that suggests that ability may be related to turnover through the individual's perception of both the ease and desirability of movement. The potential effect of ability on the turnover process and its practical and theoretical implications are discussed.     

Unemployment and Search for Work: Exploratory Analyses of Labour Market Attachment using CPS-Type Data

Abstract. This paper deals with measuring unemployment and labour market attachment in Italy, on the basis of CPS-type survey data. It is shown that the size and rate of unemployment are highly sensitive to modest variations in the definition of unemployment. This motivates a different approach. Based on the answers to a set of questions on search for work, a cluster analysis is performed, which yields four well established groups. Comparing them with the official labour force classifications, two “grey areas” appear at the borders between employment, unemployment and inactivity, which are of some interest in interpreting labour market attachment.     

From the Marginal Equilibrium to the Generational Paradigm. Microeconomic Behavior in a Dynamic Model of Social Equilibrium

ABSTRACT: The purpose of this paper is to formulate an initial hypothetical framework describing microeconomic behavior of labour market agents in a dynamic model of social equilibrium. To this end we outline an alternative hypothesis concerning the process of determination of labour demand and of the allocation of employment requirements on a generational basis. Reformulating the microeconomic model to consider labour as a quasi-fixed factor, comparable to a population, and which follows a biological, more than a mechanical logic, the paper assigns primary roles to careers and dual markets, the first-job market, and factors of asynchrony and social control mechanisms. At the same time, the generational determinants of the supply of labour are identified, together with the processes of identification and selection between labour demand and supply. On the basis of these considerations the concept of the generational paradigm is brought into the analysis. This paradigm designates the set of determinants of labour supply and demand behavior that are functions of time, of social and institutional variables, and of the technical and organizational structure of production. The paper ends with an initial thesis that the working of the generational paradigm is a crucial factor in the overall social equilibrium.     

Regional Dispersion of Industrial Labour Costs in the European Community (1988)

ABSTRACT: The aim of this paper is to present a measure of regional labour costs in manufacturing industry in the European Community in 1988. As raw data, derived from the Eurostat Labour Cost Survey, are strongly dependent on sectoral distribution of employment in each region, a method is presented, based on reweighting techniques and loglinear modelling, to eliminate the composition effect. As a result, a regular geographical pattern does emerge. The same type of technique is then applied to the evolution of regional labour costs between 1984 and 1988; some correlation does appear with regional unemployment levels in the United Kingdom and France, pointing the way towards further research.     

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.     

The Incidence of Household Characteristics on Labour Decisions: The Case of Spain

Abstract. This work presents an approach to the analysis of the incidence of family relationships on individuals' labour decisions as well as on their position in the labour market. We follow two different analyses. Firstly, we attempt to identify the type of households which are the most characteristic in our society to select the main categories of those where most people live, in order to study the decisions about participation in labour markets as well as the incidence of unemployment upon them. The second analysis tries to implement a model to allow us to study the implications of living in a partnership and the probability of both members of a couple having the same labour market status. There are at least two relevant results: the first shows the important concentration of unemployment in households of a couple with adult children and is clearly related to youth and female unemployment and the necessity of political intervention to correct them. The second points out the dependence between the labour status of the couple, mainly when they have a low level of education. Nevertheless, the woman is usually inactive, although this situation tends to change the younger she is, in which case the highest probability is that both members of the couple are employed.     

A Structural Approach to the European Labour Market

The structure of the European labour market is highly differentiated by geo-graphical area. If the 1992 integration is likely to induce short-medium term adjustment effects on employment, these will mostly affect regional labour markets. Negative adjustments will follow different distribution patterns, probably exacerbating current regional disequilibria. On the other hand, still little known are the geographical features of the European economic, social and production structures. Although many studies have recently concentrated on the analysis of local labour markets, few of them have addressed the issue of Community regions. Through multivariate and cluster analyses of structural data on regional labour markets, the paper offers a confirmation of the explanatory power of local market analysis, as applied to the European area. The structural features of each elementary area are captured by three factors only that allow the construction of a coherent classification of EEC regions in four major clusters. This classification is used to identify the “weak areas” that, after a reconsideration in unified terms of European cooperation policies, should be the object of new development interventions.     

Work system design and the quality of working life

Those responsible for designing work systems have considerable influence over the quality of working life of those employed both in operating and managing the system. Whilst research evidence is available regarding the impact of changes to jobs and work organisation, this research has tended to be based on changes made for remedial reasons where existing arrangements have been seen as the source of problems such as high labour turnover, low productivity, etc. The changes reported have often been limited in extent since assumptions regarding aspects such as the operations technology remain unchallenged. Those responsible for the initial design of work systems, however, have an opportunity to consider means for developing a “fit” between the needs of employees and the objectives of the organisation throughout the design process. Here we shall consider those aspects of work systems which relate particularly to the motivation of employees. Two situations are described, and contrasted, where those responsible for the design of the work systems place emphasis upon integrating the needs of individual employees into the initial design.