The E nigma of Under-urbanization: An Explanation Based on International Trade

To study the relationship between under-urbanization and international trade, we set up a model of the transfer of surplus rural labor in an open economy using 1995-2010 data from 40 countries and regions where industrialization was incomplete. Our findings indicate that if, in an open economy, there is a substantial labor surplus and in which domestic goods and services can be sold to foreign markets, there will be a significantly positive correlation between the net export ratio and the degree to which urbanization lags behind industrialization; countries or regions with higher marketization level, lower urban unemployment rate and poorer public health facilities are more likely to be under- urbanized; and an inverted U-shaped relationship exists between under-urbanization and per capita GDP.     

Discouraged vs. added workers: Variation by gender,age, and marital status

This paper analyzes the relationship between aggregate unemployment and the labor force participation of males and females of differing ages and marital circumstances. According to the discouraged-worker effect, a higher unemployment rate causes some workers to leave the labor force leading to a reduction in both the labor-force participation rate and the unemployment rate. To shed light on this statistical incongruity, a unique data set consisting of monthly observations from the Current Population Survey is used to extract the labor force participation rates of males and females of three different age categories and three different marital classifications. Impulse functions from vector error-correction models indicate that discouraged workers are more likely though not exclusively to consist of married males and females between 50 and 65 years of age. No statistically significant evidence of a net added-worker effect is found among married females or males in any age group.     

Optimizing the “demographic dividend” in young developing countries: The role of contractual savings and insurance for financing education

Many developing regions are facing a youth bulge, meaning that young people comprise the highest proportion of the population. These regions are at risk of losing what could be a tremendous opportunity for economic growth and development if they do not capitalize on this young and economically productive population, also referred to as the “demographic dividend,” defined as the increase in economic growth that tends to follow increases in the ratio of the working‐age population – essentially the labor force – to dependents. Nations undergoing this population transition have the opportunity to capitalize on the demographic dividend if the right social, economic, and human capital policies are in place. In particular, Sub‐Saharan Africa, the Middle East, and North Africa are at risk of losing the demographic dividend. These regions face high youth unemployment, low primary school completion, and low secondary school enrollment. This results in an undereducated and unskilled segment of the population. The prohibitive costs of education prevent young people from finishing school, thereby entering the labor market unprepared. This article presents a case for youth‐focused financial inclusion programs as one of the antidotes to the masses of poor, undereducated, and low‐skilled young people swelling the labor markets of poor developing countries.     

Laziness or liberation? Labor market policies and workers' attitudes toward employment flexibility

This study examined the relationship between labor market policies and employees' willingness to make concessions in order to avoid unemployment. In contrast to previous work that analyzed the behavior of employers and the unemployed, we examined how labor market policies influence employees' flexibility. Multilevel modeling techniques were applied to a data set that was created by combining individual‐level data from the International Social Survey Program (ISSP) with country‐level information from the Organization for Cooperation and Economic Development. The main findings of our analyses were that dismissal protection and unemployment benefits do make a difference to employees' willingness to make concessions, and that the relationships between the willingness to make concessions and labor market policies are nonlinear. Substantively, these nonlinear relationships suggest that employees' willingness to be flexible is negatively associated with both “too much” and “too little” social protection.     

Unemployment in Poland - causes and remedial measures

This article describes unemployment and labor market policy in Poland after 1989. The analysis is based on official statistics, legislation and Polish social science literature. The unemployment situation in Poland is continually changing. Conclusions drawn by social scientists in 1991 and 1992 no longer give an adequate account of labor market trends in 1995. Steeply rising unemployment is the most traumatic upheaval in post-Communist Polish society. At the end of 1989, the number of people looking for work in Poland was far less than the number of available jobs. But by the end of 1992 there were 62 job-seekers for every job opening, dropping to 56 in September 1994. The social problems associated with unemployment vary from region to region. Women and young people predominate among the unemployed. The Polish government set up a Work Fund in January 1990 to alleviate unemployment. The Work Fund is the first real measure taken to assist the unemployed, but new legislation is needed if it is to become more effective.     

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.     

Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age

Pfeifer, M. Comparing unemployment protection and social assistance in 14 European countries. Four worlds of protection for people of working age This article aims to show which policy responses 14 Western European countries have adopted to deal with rising unemployment levels and increased need for benefits during working age. In contrast to earlier studies, both components of unemployment benefits (UB), i.e. unemployment insurance and unemployment assistance, were taken into account in a social rights indicator that depicts the legal entitlements of the unemployed. In total, there were eight indicators of both UB and social assistance representing expenditure, generosity, problem pressure and benefit entitlements. The following cluster analysis groups countries using these indicators. The resulting typology consisted of four ways of protecting the working‐aged: an extensive safety nets type operating well with functioning labour markets; a liberal protection type dealing with low levels of unemployment; a targeted protection type combined with an insider–outsider divide on the labour market; and lastly, a patchy safety nets type facing high unemployment levels.     

Unemployment and Mental Health: Some British Studies

Within the context of the British labor market, 11 investigations into the mental health impact of unemployment are described. These reveal significant decrements for people of all ages as a result of moving into unemployment, and for middle-aged men additional effects of continuing joblessness. Research into factors mediating the harmful impact of unemployment has covered time since job loss, employment commitment, social relationships, gender, ethnic group membership, social class, local unemployment rate, and personal vulnerability. Findings with respect to each are summarized, and a model of influential environmental characteristics is introduced. Additional British investigations are cited throughout the paper.     

Structural unemployment. An analysis of recruitment and selection mechanisms based on panel data among Danish long-term unemployed

The perception of structural unemployment – summarised in the notion of 'Eurosclerosis'– became almost hegemonic during the 1990s. Policy makers all over Europe tried, by means of supply-side policies, to counteract the lack of incentives in the developed European welfare states, the lack of qualification on the post-industrial labour markets and the personal decay due to long-term unemployment. However, based on the critical case of Denmark, this article challenges the perception of structural unemployment and suggests an alternative business cycle/barrier perception. At the macro level it is difficult to explain the Danish decline in unemployment from 1994 to 2000 within the structure perception. The lack of explanatory power of the structure perception is further highlighted in micro-level analyses conducted on a panel study of long-term unemployed. Based on the unemployed's own assessments, we find no indications of supply-side problems. These results are supported by analyses of actual labour market integration of the long-term unemployed in the period between 1994 and 1999, which show that education level and previous unemployment had no noteworthy influence on labour market integration, whereas age had a decisive influence. These surprising results further undermine the perception of structural unemployment and the supply-side policies rooted in this 'mistaken' problem definition.     

Psychological Weil-Being Among Unemployed and Employed People After a Company Closedown: A Longitudinal Study

In a three-year longitudinal study, we examined the effects of unemployment and the fear of becoming unemployed on the psychological well-being of 1153 employees at a shipyard that was closed down, and a control group of 441 employees from another, operative shipyard. On all three questionnaires, unemployed people were significantly lower in psychological well-being than employed people. Change to or from employment was significantly associated with changes in psychological well-being, whereas remaining employed or unemployed did not lead to any systematic changes in psychological well-being. Among employed people, the fear of unemployment was strongly associated with reduced psychological well-being. Thus, the health-related consequences of unemployment affect not only the unemployed but also employed people who have little job security. Consequently, we stress the need to create new workplaces and to implement reforms that can reduce job insecurity in the labor market.     

The effects of inter-league competition on labor market discrimination: assessing the impacts of the world hockey association

This paper argues that the presence of competitive, as opposed to monopsonistic, labor markets should reduce the level of entry discrimination. For those teams that have a “taste” for discrimination, competitive labor markets increase the cost of discriminating, because competition bids-up the salaries of the preferred players, relative to the salaries of the non-preferred players. The paper empirically tests this notion by examining the impact on French Canadian players of the short-lived World Hockey Association (WHA).     

China-Germany Industrial Cooperation in the Context of the Belt and Road Initiative—An Analysis Focusing on Shandong Province*

At present, economic decision-makers and theorists predict that the robust alliance of “German technology” and “made in China” will reach new global heights through the development of intelligent manufacturing. However, the path to the realization of this prediction is still being explored. Shandong is a microcosm of China’s economic development and China-Germany cooperation, so the province can be analyzed as a representative example of the industrial choices and implementation strategies of this cooperation. In practice, China-Germany industrial cooperation should take into account industries where Germany has an advantage and the industrial development priorities and future growth potential of China and Shandong. We should thus focus on raising the quality of German investment and attending to its spill-over effects. The findings of a quantitative analysis of Shandong’s industrial gradient coefficient and industrial correlation show that the future alignment of German and Shandong industry should adhere to the principle of “emphasizing key points and storing up resources for the future.” For this reason, we should not only strengthen the key fields of Shandong’s industrial alignment with Germany, but also actively cultivate areas with potential. Research on the pattern of German investment in China indicates that German companies’ choice of investment location has certain distinctive features. The factors that matter most in attracting German investment are the concentration of German first-comer enterprises in the host country, the shape of the business environment and the level of human capital and regional science and technology. For this reason, against the background of the Belt and Road Initiative, Shandong’s alignment with German industry should focus on building industry chains, constructing investment platforms and shaping the external environment.     

Structural reforms and labor markets in Argentina

Argentina is considered to be one of the most successful cases of structural reforms in Latin America, because of the extent and rapid pace of the reforms after the hyperinflationary process of 1989–1990. At the beginning of 1991, the convertible plan was launched and inflation fell sharply. However, even when the economy is growing fast, the problems in the labor market seem to worsen. Unemployment and underemployment have risen, and an increasing number of people have fallen out of normal work. The article analyzes how changes in labor markets are closely related to the transformation process in the economic system. After a summary of the situation before the crisis of the 1980s, the article analyzes the stabilization plans applied and then discusses the current dynamics of labor markets and the policies implemented to change labor regulations. Finally, some hypotheses about future scenarios are presented.     

Do active labor market policies for welfare recipients in Germany raise their regional outflow into work?

While many studies estimate the effects of active labor market programs (ALMPs) on the participants’ labor market outcomes, far fewer studies are concerned with the effects of these policies on the regional job-matching process. We analyze which ALMPs are particularly effective at the regional level, as well as the role local labor market conditions play for their effectiveness. We find positive effects for a number of ALMPs, but for some of these the effects differ considerably between regions with high and low unemployment. This has important policy implications.     

The signalling role of over-education and qualifications mismatch

Over-education may arise from the voluntary decisions of individuals to acquire more qualifications than those required in the workplace, such that over-education may have a signaling role that allows workers to compensate for the lack of certain other skills, or to gain access to the labor market. This paper analyses the signaling role of over-education in Spain, a country characterised by a strongly-segmented labor market with high unemployment levels, and a large number of over-educated. Using micro data for a representative sample of Spanish workers, three different methods are applied to provide evidence that educational mismatch plays a clear signaling role. Policy implications are derived to alleviate inefficiencies in the allocation of educational resources and in the incentives of workers to use over-education as a signal.     

When 'Choice' and 'Choice' Are not the Same: Institutional Frameworks of Choice in the German Welfare System

The creation and strengthening of welfare markets in Germany means that citizens can increasingly choose among competing providers of welfare goods and services. However, the conditions under which citizens may exercise choice in various fields of social policy are quite different. A major reason for these differences can be found in the public institutions that frame citizens' choice in welfare markets. This article analyses welfare markets in German health care, long-term care, pensions and employment policies, paying special attention to the respective public institutional frameworks. It will be argued that differences between frameworks of choice can be categorized by means of four parameters representing different aspects of public involvement in welfare markets. Depending on the kind and the degree of public involvement, welfare markets may be compatible with 'traditional' notions of public responsibility for citizens' social security.     

The perceived fair duration of unemployment benefits for older workers. The role of lifetime achievements in the labour market

The welfare state regulates social policies and reallocates scarce resources. For the social legitimacy of the welfare state, it is important that the public supports the principles underlying this reallocation. This article examines the impact of different activities during the life course on public deservingness perceptions of older unemployed people. In a factorial survey experiment conducted among a random sample of individuals drawn from German administrative employment records, we examine the maximum duration of benefit receipt which is perceived as fair for older unemployed persons with different biographies. The results indicate strong public support for a nexus between previous contributions and benefit entitlements. Besides financial contributions to unemployment insurance, parenting and further training are considered to be ‘lifetime achievements’ which justify longer unemployment benefit receipt. We interpret these findings as an expression of a generalised form of reciprocity which guides perceptions of deservingness regarding older unemployed persons.     

劳动就业政策变革的现实性分析

劳动就业政策的变革,除了要与本国的历史文化和制度基础相适应,并进行互补性与综合性等相关制度设计以外,还应当具有政治可行性。其中,互补性与综合性主要表现为就业保护与社会保护之间的互补性、消极的与积极的劳动力市场政策之间的互补性、税收与失业救济之间的互补性、经济性互补与政治性互补之间的互补性等;政治可行性的核心是各社会群体之间利益的平衡。就业保护的政治性支持与租的存在、劳动力市场僵化的政治性支持与失业的自我强化机制、劳动力市场边缘灵活化改革的政治性支持与中位选民的变化、积极的劳动力市场政策的税收与暴露效应等是劳动就业政策变革政治可行性的集中体现与决定因素。     

Supporting the Labor Force Participation of Older Adults: An International Survey of Policy Options

The unprecedented aging of the world's population challenges many institutions, including labor markets and public pension programs. This study was conducted to survey expert opinions regarding conditions and policies that affect employment of older adults. Eighty-nine respondents from 26 nations responded to an Internet survey regarding their own experiences with the aging labor force; factors that encouraged or discouraged labor force participation of older adults; and government responses to these issues. Respondents identified barriers to employment of older adults and described their governments' responses. Findings illuminate a range of current policy options and suggest possible opportunities for innovation.     

Economy-wide effects of cross-border labor mobility: The case of Palestinian employment in Israel

This paper investigates the economy-wide effects of cross-border movements of Palestinian labor for employment in Israel. The integration of Palestinian and Israeli labor markets is unique, as it differs from international labor migration and associated remittances described in the literature. Especially, it departs from the cultural and social dimensions associated with international migration because there is no shift in residence. We find based on an economy-wide model calibrated to a newly developed database of the West Bank economy that increasing Palestinian labor demand in Israel negatively affects the West Bank economy by bidding up domestic wages, reallocating labor away from tradable activities and reducing competitiveness of the Palestinian export sector. However, increasing labor income from Israel has positive welfare effects for Palestinian households. Considering these results, the paper identifies policy options for the Palestinian National Authority.