INVOLUNTARY, EMPLOYMENT IN CONTRACTS WITH RISKY JOB SEARCH

The implication of partially insurable job search risk for incentive compatibility in a standard contracting framework are explored. When unemployment spells provoke job search, workers face risk in spell duration and reemployment wages. When search effort is not variable, contracts including unemployment insurance will yield involuntary employment. When search effort is diminished by UI benefits, firms shift some compensation back to wages, increasing the relative attractiveness of employment. The analysis begins with a theorem on incomplete insurance by Imai, Geanakoplos and Ito [1981] for which a simple proof and economic intuition are provided.     

Stand By Your Man: Wives' Emotion Work During Men's Unemployment

Recent research on unemployment has not sufficiently acknowledged how unemployment reverberates within families, particularly emotionally. This article uses data from more than 50 in‐depth interviews to illuminate the emotional demands that men's unemployment makes beyond the unemployed individual. It shows that wives of unemployed men do two types of emotion work—self‐focused and other‐focused—and both are aimed toward facilitating husbands' success in the emotionally arduous white‐collar job‐search process. This article extends research on emotion work by suggesting that participants perceive wives' emotion work as a resource with potential economic benefits in the form of unemployed men's reemployment. The findings furthermore suggest that as a resource, wives' emotion work is shaped by the demands of the labor market that their husbands encounter.     

Effect of Health on Retirement of Older Americans: a Competing Risks Study

Retirement is an important event in the life of an individual. The decision to retire or exit from full-time employment may be motivated by several factors, including health. This paper explores the effect of both subjective and relatively more objective physical and mental health conditions on the probability of exit from full-time employment. Using longitudinal data on older Americans from ten waves of the Health and Retirement Study (1992–2010), eight health indices are created from a wide range of health measures by principal component analysis. The effect of these health indices on the time until exit from full-time employment is empirically examined in a proportional hazard model. Single and competing risk specifications are estimated that allow for multiple spells of full-time employment and control for unobserved heterogeneity. The main results suggest that better self-reported health decreases the likelihood of exit from full- time employment, while poor physical health (functional limitations factor) increases the likelihood of exit from full-time employment via complete retirement and disability. For mental health, I find that depression increases the likelihood of exit via complete retirement, part-time work and unemployment while cognitive disorders lead to an increase in likelihood of exit via the disability exit route. Hence, physical and mental health problems are both impediments to continued work. These results have implications for public policies targeted towards retaining older workers within the labor market.     

Erwerbseinstieg und erste Erwerbsjahre

The debate about the structural change of the labor market and the organization of dependent work has not been decided, neither theoretically nor empirically. This paper investigates on the basis of data from the GSOEP (German Socio Economic Panel) the entry into the labor market and the first years of gainful employment for four birth cohorts. The central focus of our argumentation lies on the following questions: Is there an increase of atypical entries into the labor market (aged 15 to 26) — i.e. part-time employment, unemployment or non labor market participation — and what proportion of their first years of working life (aged 15 to 36) do people spend in full-time employment. The results show a rise of atypical entries into the labor market for the younger cohorts. The duration of male full-time employment will be shorter because of longer education periods, while this duration rises for women as a result of decreasing relevance of housewife work. An atypical entry into the labor market has long-term consequences for the further working life, so that it hardly can be compensated. A de-standardization of the entry into the working life is most frequent for men and women with lower professional qualification. The results show that society is increasingly polarizing along the lines of qualified and non-qualified persons.     

The Impact of the Labor Market on Health Insurance

This paper examines the impact of labor market conditions on employer-sponsored health insurance (ESHI). Unique data from the Louisiana Health Insurance Surveys linked to unemployment data and the Louisiana Job Vacancy Surveys prior to and after Hurricane Katrina provide very large variation in the job vacancy and unemployment rates, our measures of labor market conditions. Results suggest a significant relationship between both unemployment and industry specific job vacancy rates and ESHI.     

DO UNEMPLOYMENT BENEFITS AFFECT ON‐THE‐JOB SEARCH? EVIDENCE FROM LABOR TURNOVER BEFORE ESTABLISHMENT CLOSURES

We develop a job search model that predicts that potential job losers would reduce on‐the‐job search (OTJS) effort and job‐to‐job transitions before layoffs, in response to an increase in the potential duration of unemployment benefits (UB). To test this prediction, we exploit changes in the maximum potential duration of benefits in Germany to analyze how it affected labor turnover before establishment closings. The evidence supports the model prediction that workers with longer potential benefit duration are more likely to remain with their establishments until closure and to enter nonemployment. These findings indicate that the effects of UB on the OTJS decisions of potential job losers should be considered in the optimal design of the parameters of unemployment insurance systems. (JEL J63, J64, J65)     

EMPLOYMENT DYNAMICS OF IMMIGRANTS VERSUS NATIVES: EVIDENCE FROM THE BOOM‐BUST PERIOD IN SPAIN, 2000–2011

This article studies whether the durations in unemployment and employment for immigrants and natives respond differently to changes in economic conditions and to the receipt of unemployment benefits. Using Spanish administrative data for the period 2000–2011, we estimate multi‐spell duration models that disentangle unobserved heterogeneity from true duration dependence. Our findings suggest that immigrants are more sensitive to changes in economic conditions both in terms of unemployment and employment hazards. The effect of the business cycle is not constant but decreases with duration at a higher rate among immigrants. We provide evidence that the higher job separation rates and lower capital‐labor complementarity of immigrants are mechanisms that are possibly compatible with these results. We also find evidence of a disincentive effect of unemployment benefits on unemployment duration, which is stronger for immigrants, but only at the beginning of the unemployment spell, especially under good economic conditions. Finally, unemployment benefits increase job match quality only for native workers with temporary contracts. (JEL J64, J61, C23, C41, J65)     

Older Adults: Work‐Related Issues and Implications for Counseling

In a period of business downsizing, older workers are at risk for unemployment. They often have difficulty finding suitable replacement jobs and frequently face emotional and financial distress. Employers, as well as older workers, may have perceptions and concerns that can create barriers to reemployment. Older workers are a valuable asset in the labor market. Their plight affects society as a whole. Counselors should be aware of work related issues of older workers, career theories and supporting research pertaining to this unique population, and suitable interventions with which to help older adults make smooth career and life transitions.     

Self determination theory and employed job search

Self Determination Theory (SDT) predicts that employees who use controlled motivation to search for alternate (better) work are less successful than their counterparts who use autonomous motivation. Using Australian labour market data, we find strong support for SDT. We find that workers who face externally regulated pressures (pressure arising from involuntary part-time or casual labour contracts) to search for alternate employment are less likely to find better work, than workers who use autonomous motives to search for work. Our findings suggest that labour market policies trending towards ‘labour market flexibility/deregulation’ – which provide workers with controlled motives to search for work – will contribute to workers cycling through spells of insecure employment and possibly intermittent spells of unemployment with no realistic prospect of career development.     

Employment Trajectories Beyond Retirement

Within the political and academic debate on working longer, post-retirement employment is discussed as an alternative to maintain older workers in the labor market. Our article enhances this discussion by studying determinants of transitions into post-retirement jobs within differing work environments of birth cohorts 1940–1942. We estimate proportional subhazard models accounting for competing risks using unique German social security data linked to pension accounts. Our findings suggest that individuals’ preferences to take up post-retirement jobs are not mutually exclusive. Our study provides evidence that taking up post-retirement jobs is related to seeking financial security, continuity, and work ability, suggesting that public policy has to develop target-oriented support through a public policy mix of different measures aligned to the different peer groups in the labor market.     

Sexual Orientation,Unemployment and Participation: Are Gays Less Employable than Straights?

This paper is the first attempt to assess, in a unified econometric framework, the existence and the magnitude of both the sexual orientation participation gap and the sexual orientation unemployment gap. Having identified male same-sex couples using the Employment Survey, we use a bivariate probit selection model where the labor supply and the employment equation are jointly estimated for the French labor market. The results show that both participation and employment probabilities are significantly lower for gay employees compared to their heterosexual counterparts. Further investigations indicate that young gay workers, particularly, are more exposed to the unemployment risk than older ones. The beginning of a professional career and the subsequent entry to the labor market appear to be difficult steps to overcome for gay workers who spend more time than their heterosexual counterparts to find the good job.     

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.     

The Effect of Unemployment Insurance on Temporary Help Services Employment

A model with fixed effects and controls for state-specific linear time trends is developed to analyze the influence of state unemployment insurance taxes on temporary help services employment using state level panel data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. Prior research has shown that imperfect experience rating of unemployment insurance taxes increases temporary layoffs and that, conversely, more extensive experience rating leads to a decrease in temporary layoffs. The current analysis demonstrates that more extensive experience rating increases temporary help services agency-intermediated temporary employment. To the extent that the increase in temporary help services employment represents a substitution of temporary help services jobs for traditional direct hire jobs, it implies a negative effect on job quality. Steps to address low unemployment insurance recipiency rates by temporary help services workers may alleviate the impact of unemployment insurance tax structures on temporary help services employment.     

SELF‐EMPLOYMENT,EFFICIENCY WAGE,AND PUBLIC POLICIES

Empirical evidence suggests that unemployed workers are much more likely to become self‐employed than wage‐employed workers. Also, higher unemployment benefits significantly reduce the rate of self‐employment. This article develops a model of self‐employment which incorporates transitions between unemployment and self‐employment. It integrates two strands of theoretical literature—models of occupational choice and the efficiency wage models. In this model, a higher unemployment benefit reduces the self‐employment rate and the transition rate of unemployed workers to self‐employment, which is consistent with empirical evidence. (JEL J23, J58, J64)     

Corporate Restructuring, Downsizing, and the Middle Class: The Process and Meaning of Worker Displacement in the “New” Economy

This article conceptualizes, describes, and analyzes the phenomenon of corporate downsizing and the experience of worker displacement as a process of work and employment change that occurs within the context of structural changes in the economy, large firms and labor markets. The research is based on a case study of displaced IBM computer and Link aerospace workers in Binghamton, New York. Research participants encountered a process of displacement that began before job loss, as the firms abandoned longstanding paternalistic work relations and altered their internal labor market structures. Following job loss, displaced workers negotiated a job search in a declining Binghamton economy and a competitive local labor market. In subsequent employment, the majority of those in the study experienced significant work and employment change associated with downward mobility. The findings suggest that in the new economy, the concept of worker displacement should be thought of in more expansive terms than the more narrow and conventional definition that is often associated with it. Workers' experiences of downsizing, displacement and employment change were not simply, or even primarily, associated with job loss, but were characterized by significant departure from objective conditions and subjective meanings of work and of being workers.     

Who benefits from labor market institutions? Evidence from surveys of life satisfaction

This paper investigates the welfare effects of labor market institutions, placing an emphasis on how the institutions’ effects are differentiated by socio-demographic subgroups. We study how life satisfaction is affected by employment protection and the level and duration of unemployment benefit payments. Using data for almost 370,000 individuals in ten European countries, 1975-2002, we find that more employment protection and a higher benefit replacement rate increase the life satisfaction of the average citizen. At the subgroup level, different segments of the population are affected differently by the two categories of labor market institutions. While employment protection is valued especially by employed persons of intermediate age, it is less beneficial for women/housewives and for older persons. More generous unemployment insurance is valued especially by these latter subgroups and by the unemployed.     

Women and plant closings: Unemployment,re-employment,and job training enrollment following dislocation

Major changes in the U.S. economy are leaving blue collar women vulnerable to extended unemployment, permanent job loss, or re-employment at lower wage and benefit levels. Consequently, retraining for other jobs may be a virtual necessity. Information about factors associated with women's employment status after job loss may be useful to policy makers and program planners providing assistance or training to dislocated women. This study of women workers, who are dislocated from jobs in textile and apparel plants in Georgia, identifies the differences between women who are unemployed, re-employed, or enrolled in job training programs following job loss. Findings suggest that stage of the family life cycle and the demands of combining production work and family responsibilities contribute to women's experience of unemployment and their labor market participation.     

Labor Supply,Labor Demand,and Men's Underemployment in Rural and Urban Labor Markets1

Abstract This paper examines how the structure of the labor market differentially affects white men's underemployment in urban and rural areas. The effects of labor supply and demand, including special measures of public employment and two previously neglected aspects of competition—global industrial competition and sexual labor market competition—on unemployment, low-wage employment, and low-hours employment are examined. A higher proportion of females in the labor force in rural labor market areas provides benefits to men in the form of lower unemployment, but also costs them, through an increased prevalence of low-wage employment, while the opposite effects are evident for areas with concentrations in periphery service industries. The findings suggest that industrial restructuring in the form of increased foreign competition and an increased loss of core transformative jobs are especially threatening to rural men's employment adequacy.     

The Assisted Living Residence: A Vision for the Future by Stephen M. Golant and Joan Hyde (Eds.)

Abstract

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 knowhow. 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.     

Befristete Beschäftigung: Chance oder Risiko?

The paper investigates whether increased labor market flexibility leads to a reinforcement of the existing segmentation of the labor market or whether it is dismantling the barriers in the labor market. Using spell data (employment and unemployment periods) from the German Socio-economic Panel (GSOEP, time period: 1984–1999) both determinants of fixed-term contracts and their consequences (renewed temporary employment, unemployment) are investigated with the help of random-effects logit-models. The results show that respondents’ characteristics (amount and type of human capital, formerly experienced periods of unemployment), structural variables (branch, firm size), and occupational characteristics (position, marginal employment) are influencing the risk of getting a temporary job. Furthermore it becomes evident that fixed-term contracts are increasing the risk of getting a temporary job again or of becoming unemployed after termination of the temporary job. These results show that fixed-term contracts above all are part of the secondary labor market, and that they especially have negative consequences for the employees in this segment. On the other hand fixed-term contracts can be seen as a chance in the way that they offer at least an alternative to unemployment. Hence, a too narrow evaluation of temporary employment would be too simplistic.