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.     

新形势下上海促进就业的机制研究

为推动上海实现更高质量就业,必须通过健全促进就业政策,充分发挥政府、市场、企业与劳动力的合力,以经济发展创造就业岗位,不断提升就业质量,持续扩大就业总量。深入推进城市空间结构调整,有效加快郊区新城建设步伐,充分发挥郊区新城分流人口、扩大就业与推动增长的作用。继续完善创业环境,构建鼓励创业的城市文化与社会氛围,深入促进新兴业态发展,切实发挥创业促就业的作用。进一步构建和谐劳动关系,努力维护劳动者权益,适时制订、修改、完善劳动政策法规,推进劳动合同签订与工资集体协商机制,充分发挥失业保险和社会保障体系推动就业的应有作用。     

Entry-level jobs: First rung on the employment ladder or economic dead end?

The ability of young workers to move from dead-end jobs into higher-wage jobs which have better career prospects is greatly influenced by the individual’s characteristics, local labor market conditions, and his or her human capital. This paper examines the characteristics of entry-level jobs of young workers in the 1980s with emphasis on how education and training influence the types of jobs held. The incidence of post-school training is quite low even though all types of post-school training raise wages significantly. Company-provided training reduces the probability that a young worker will leave his or her employer, while off-the-job training increases the ability of employees, especially young women, to move out of a dead-end job.     

INFORMAL LABOR MARKETS AND ON‐THE‐JOB TRAINING: EVIDENCE FROM WAGE DATA

This study examines whether informal sector jobs are a source of training for young less‐educated workers. Controlling for worker and job characteristics, it is found that, in the early years of workers' careers in Mexico, wage growth in the informal sector is higher than in the formal sector. This result is consistent with general human capital investment on‐the‐job if the informal labor market is more competitive than the formal labor market due to frictions generated by labor regulations. (JEL O17, J24, J310)     

Is automatic enrollment consistent with a life cycle model?

We examine retirement saving for young adults in a life cycle model. We find that optimal retirement saving is zero for liquidity-constrained young adults who anticipate significant earnings growth. With a plausible age-earnings profile for college-educated workers, retirement saving does not begin until the late 30s or early 40s. Workers facing a flat earnings profile begin saving much sooner. Participating may be optimal for younger workers facing steep earnings profiles if they anticipate switching jobs and cashing out after 1–2 years. Our results suggest that automatically enrolling workers, regardless of age, is not consistent with a life cycle model.     

Structural changes in the receiving country and future labor migration--the case of Kuwait

This article describes changes in the volume, age and sex composition, retention, productivity, types of occupation, and economic sector of the labor force in Kuwait. The focus is on the structural changes in the indigenous labor force. Data were obtained from censuses and labor force surveys during 1965-93. Policies after the 1990 invasion pertained primarily to security of public employment sector among natives. Over 98% of private sector employment is among non-Kuwaitis. Government programs support high fertility. Female illiteracy has declined, and the proportion of women with a higher education has increased. Natives comprised 20.4% of the total labor force in 1993. About 90% of native males work in the public sector. 45% of total male employment is in the production sector. Around 50% of non-Kuwaiti males have been employed in production work over the decades. Over 90% of Kuwaiti females in 1993 worked in professional or clerical work. Over 50% of total female labor force participation is in the service sector. Concentration in the public sector increased for Kuwaitis and declined for non-Kuwaitis. Labor force participation declined with increasing age. Retirement benefits encouraged early retirement. The private sector is experiencing the departure of long-term migrants and more rapid turnover of labor. Hours of work are longer in the private sector. Kuwait is still dependent on foreign workers in the production and service industries. It is likely that native male workers will replace foreign workers in professional work and administrative/clerical work. Policies that will assure future reliance on imported labor include the assurance of government jobs for Kuwaitis, retirement rules, and the profitability of the trade in labor.     

The Impact of the Worker: How Social Capital and Human Capital Influence the Job Tenure of Formerly Undocumented Mexican Immigrants

Using the 1992 Legalized Population Survey, I focus on employment matching processes of formerly undocumented Mexican immigrant workers in the United States. As in earlier studies, I show that employment characteristics are related to the job tenures of immigrant workers. However, my contribution is that I specifically analyze how formerly undocumented Mexican immigrant workers' attributes and social networks influence their job tenures. In general, increases in human capital are associated with shorter job tenure, apparently in an effort to improve employment conditions, while the use of social capital is positively related with job tenure. It appears that acquiring employment is a social process, and those using personal networks find longer lasting jobs. Although prior studies have minimized the role of supply-side characteristics such as employees' skill level and social networks in influencing job tenure, my research confirms the significance of workers and the resources they bring to the labor market.     

How to Get a Longer Job? Roles of Human and Social Capital in the Japanese Labor Market

This article investigates the roles of human and social capital played in the Japanese labor market. Our research question is whether they interact to accelerate or decelerate each other to provide first jobs of a long duration. Based on the literature, we focus on the bonding functions of friends and relatives. Using the 2005 Social Stratification and Social Mobility Survey Data, we measure human capital by educational attainment (college education) and social capital by job search methods (using friends or relatives). The dependent variable is the hazard rate of turnover from the first job. We find that social capital especially benefits those with low human capital (high school graduates). When friends or relatives introduce workers to jobs, high school graduates tended to stay longer in their first jobs and had a lower turnover than college graduates did. This means that social capital decelerated effects of human capital. Therefore, in the Japanese labor market, social capital plays a complementary role in mitigating educational disadvantage.     

Social security reform ideas in Japan

Japan has a complex social security system. This article discusses the demographic and economic situation in Japan as background for understanding the setting in which the social security system functions. Japan has a three-pillar system for retirement income. The first pillar is the social security pension plan; the second pillar is the voluntary occupational pension plan; and the third pillar is personal savings, including the personal pension plan. The most important part of the retirement income system is the social security pension plan, which paid benefits accounting for 64% of the total income of elderly households in 1998. The five Employees' Pension Plans are established on a compulsory social insurance basis. Most large Japanese employers have a mandatory retirement age. Over 90% of all employees, including public sector ones, must retire from their career jobs at age 60.     

Recent developments in the employment and retirement of older workers in Germany

Against a background of an aging population, rising social security costs, and foreseeable labor and skill shortages, there have been public policy changes affecting older workers in Germany. Labor-market related initiatives aim at an increase of labor force participation among this group. Enterprise-related, active age-management strategies aim at improving occupational conditions of aging workers. In this context, prolonging the working life must be seen as one option of "active aging." Another view of the current retirement discussion is the question of how the unused potential of Germany's younger, early-retired seniors can be exploited. Active aging has become a social duty nowadays, with the intention that older persons contribute to society to avoid generational conflicts. In the future, active aging will preserve the competitiveness of enterprises and of the entire economy, despite an aging labor force. But gerontological research points out that different options to carry out individual life plans of active aging are also required. This article reviews the changes in public policies towards older workers and includes the findings of a project that illustrates good practice to combat age barriers in the labor world.     

What Happens to Defined Contribution Accounts When Labor Markets and Financial Markets Move Together?

The relationship among earnings, savings, and retirement is well known; however, the linkage between labor market outcomes and financial market performance is generally unacknowledged. We examine the implications of the link between labor markets and financial markets for workers who save money in individual retirement accounts. Specifically, differences in labor market outcomes across groups may imply differences in the timing of investments, which may reduce savings over time for these groups compared to their counterparts. Using monthly data from the Current Population Survey (1979–2002), we generate hypothetical investment portfolios using stock and bond indices. We exploit differences across demographic groups in unemployment and wage growth and use these differences to examine each group's investment outcomes. We then disaggregate the total effects into short-term and long-term components. We find some evidence of short-term market timing effects on investment, but we find much larger long-term effects for some groups. Our findings suggest that, for many people, the retirement savings losses associated with the timing of markets are similar to the costs of annuitizing savings upon retirement. The differences are especially pronounced by education and gender.     

U.S. immigration policy: the guestworker option revisited

In guestworker programs foreign nationals are admitted into another country on a nonmigrant status with severely curtailed social and limited labor market rights. The duration of stay is always finite and compliance with the terms of the contract are entered through a network of legal arrangements which allow officials in the receiving country a substantial amount of administrative discretion. Pro-guestworker arguments say that the borders cannot be closed, that guestworkers can be substituted for illegal aliens, that guestworkers are better than illegal aliens, and that additional labor benefits the US economy. Those against guestworker programs stress longterm socioeconomic issues rather than short-term economic advantages, saying that guestworker programs are no quick answer for illegal immigration, for domestic labor shortages, or for the US poor population. Guestworker programs, its opponents say, provide short-run economic benefits to a few employers and individuals at the expense of more widespread and longterm socioeconomic costs. They oppose: 1) the concept of admitting foreign workers with restricted rights, 2) the concentration of any negative labor market impacts on already disadvantaged domestic groups, 3) the proliferation of "jobs which Americans won't take," 4) many temporary guests ending up permanent residents, and 5) that exporting workers is as likely to impede as accelerate job-creating economic development in immigration countries. Most economists believe that diminishing marginal productivity produces downward-sloping short-run demand for labor schedules. The European experience with these programs has been different than those in the US since foreign workers in Europe were initially recruited in response to actual labor shortages and have always had legal status, but both Europe and the US have experienced large contingents of workers who remain in the countries and are at a pronounced power disadvantage regarding the society's institutions. Studies of guestworker programs have shown that worker flows eventually become impervious to the receiver's actual labor needs as employers disaggregate jobs into components which match the low skills of migrants and create additional foreign worker jobs which are then shunned by native labor, thus perpetuating a need for such labor. If the US opts for a large-scale guestworker program this will only replace 1 set of problems with another and it is not at all certain that large-scale guestworker admissions will proportionately reduce illegal migration inflows.     

Social Security Reform Ideas in Japan

Abstract

Japan has a complex social security system. This article discusses the demographic and economic situation in Japan as background for understanding the setting in which the social security system functions. Japan has a three-pillar system for retirement income. The first pillar is the social security pension plan; the second pillar is the voluntary occupational pension plan; and the third pillar is personal savings, including the personal pension plan. The most important part of the retirement income system is the social security pension plan, which paid benefits accounting for 64% of the total income of elderly households in 1998. The five Employees' Pension Plans are established on a compulsory social insurance basis. Most large Japanese employers have a mandatory retirement age. Over 90% of all employees, including public sector ones, must retire from their career jobs at age 60.     

Early retirement differences between Denmark and The Netherlands: A cross-national comparison of push and pull factors in two small European welfare states

The goal of this study is to give a comprehensive empirical account of push and pull factors, situated at various societal levels, which may influence people's early retirement. Factors in two contrasting European countries have been analysed and compared: Denmark, where the rate of early exit/retirement is relatively low, and The Netherlands, where this rate is relatively high. Our analysis, looking into possible explanations for the difference in rates, includes factors that operate at the macro or institutional level of the labour market and the social security system, at the meso level of firms and companies, and at the micro level of individual workers. In addition, we not only look into the effects of structural, objective factors, which impacts are usually analysed from an incentive perspective, but also into the effects of cultural factors, i.e. of preferences, attitudes and values. Cultural factors related to early exit have not been the object of much international comparison thus far, although their possible significance is readily acknowledged. The differences in retirement behaviour in Denmark and The Netherlands are explained by the fact that Danish workers, at all three levels, are less experiencing structural and cultural factors pushing them out of the labour market, as well as experiencing factors pulling them into retirement, compared to workers in The Netherlands.     

Job Loss and the Occupational Social Worker

Economic and technological changes are creating workplace and labor market upheavals. While new jobs are being rapidly created, many old ones are destroyed. Some new jobs are high-paying, but many are low-paying with little opportunity for advancement. Especially affected are higher-paid blue-collar workers and middle managers, often ill-equipped to cope with jobchange. The authors discuss the impact of job-loss and downsizing on individuals and organizations, and describe current dislocated worker and outplacement services. Occupational social work skills are seen as particularly appropriate for lay-off interventions.     

Flexible work schedules, older workers, and retirement

Older workers in the United States indicate that they would prefer flexible work arrangements rather than abrupt retirement, yet management has done very little to make this possible. A review of two bodies of literature from the late 1980s is presented: social science writings including sociological, gerontological, and economic literature, and business and management literature. There is a clash between the way jobs are traditionally scheduled and the needs of growing numbers of older workers. Workers continue to be subject to obstacles to phased retirement due to the structuring of health care and pension benefits, downsizing, organizational inflexibility, and "corporate culture." Thus, general views among social scientists regarding the desirability of flexible schedules toward retirement will not produce real changes unless management becomes committed to such changes and they are securely embedded in company policies.     

Fragmentation in Social Security Old-Age Benefit Provision in China

Currently, in many countries most workers are covered by a national social security benefits program that applies equally in all parts of the country. In China, however, social security old-age benefits are provided in a highly fragmented manner. This article documents the high degree of fragmentation. It discusses both why that has occurred and the effects of the fragmentation on participants. It examines effects of the fragmentation on benefit levels, focusing on variations in the generosity of benefit formulas but also considering other measures of benefit adequacy. Fragmentation is seen to cause differences in benefit levels even within a single city. While the new National Rural Pension Scheme is a major improvement in the provision of retirement security for rural workers, important differences still exist in the social security programs for urban and rural workers.     

Economic recession and migrant/minority youth in Western Europe and the United States

This paper considers the educational opportunities and employment futures of the children of migrants and minorities in Western Europe and the US beyond the lowest-paid and lowest-valued jobs currently held by their parents. Given that the economic recession has aggravated unemployment in the countries of origin of workers migrating to both Northern Europe and the US, it seems likely that workers will still want to go abroad. On the other hand, these workers in both regions have been concentrated in a highly segmented labor market in which they have little opportunity for professional advancement. A thriving black market for illegal workers also exists both for the US and for Northern Europe. Since this labor market structure shows no signs of fundamental change through natural or policy-directed means, it appears unlikely that migrants' children can expect any significant enhancement of their professional prospects. An alternative educational strategy might involve public commitment to provide effective education, training, and subsidized employment for all young people. Some type of allowance would be guaranteed to all young people engaging in further education and training schemes. Since the state is responsible for free elementary and secondary education, there may be a convincing argument that public responsibility extends to providing free further education and access to employment as well, as part of a forward-looking strategy for overcoming youth unemployment. Obviously, the current conservative climate across industrial nations is more inclined to blame the sloth of the victim who is unemployed. It is a legitimate question, however, as to how far a society can allow itself to widen the gap between rich and poor before it is obligated to change things.     

Managing Portfolio Lives: Flexibility and Privilege Amongst Upscale Restaurant Workers in Los Angeles

The unstable, even precarious labor conditions of many frontline service jobs in the United States should render them undesirable to upwardly mobile young workers. Yet for many, these types of jobs complement, rather than infringe upon, their broader lifestyles. Drawing on six years of ethnographic research in upscale Los Angeles restaurants, I show how front-of-the-house service workers navigate portfolio lives—sustained though shifting arrangements of labor and leisure that blur the boundaries between the two. I describe how these workers, who are mostly young, white, and college educated, leverage both personal resources and workplace structures to weave their restaurant jobs into their larger webs of activities. I close by discussing how the concept of portfolio lives extends theories of boundaryless work careers to the urban service economy, though these dynamic assemblages remain subject to class and race inequalities.

     

The Paradox of Integration: Work-Integration Social Enterprises (WISE) and Productivist Welfare Regime in Hong Kong

After the Asian Financial Crisis, the government of Hong Kong embraced the model of work-integration social enterprise (WISE) to sustain its facilitative and productivist welfare regime. Using the WISE of Pro-Love for marginalized women as a case study, the article examines the meaning of employment and social disadvantage in the organization. The ethnographic data reveal that while the WISE encourages women to participate in the paid labor market, it constructs employment in the social enterprise as part-time jobs for supplementary family income, restricts the extension of social networks for the female workers, and reinforces the cultural stereotypes of marginalized women. The study reflects on the mechanisms of the project of WISE in the welfare contexts of Hong Kong, and argues that programs targeted at labor participation cannot be automatically translated into reduction of exclusion in other domains. Long-term planning, policy coordination, and social advocacy are necessary to achieve social integration.