Unemployment: A labor market perspective

Twentieth century economists have made countless attempts to resolve the causes and cures of unemployment. However none have ventured to consider unemployment not as a social problem but as a market response to political and economic incentives. By treating unemployment as a labor market, where workers rationally select periods of joblessness and where special interest groups profit from unemployment, this paper develops a theoretically consistent model to explain the effects that policy and economic variables have on unemployment. Empirical results support this approach and the worker disincentive effects of UI compensation by estimating simultaneously a demand and supply for unemployment.     

Economic Theories of Low-Wage Work

This article examines economic theories of the low-wage labor market to increase understanding of economic inequality and poverty in the United States, particularly related to the labor market. On the one hand, neoclassical, labor monopsony, and Harris-Todaro models explain how minimum wage policies are related to supply and demand of labor, human capital, employment, and unemployment. On the other hand, the efficiency wage model, the dual labor market theory, and technology development and globalization account for the causes of the wage differentials. This article includes a conceptual map that illustrates the interrelationships between these economic theories of low-wage work.     

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.     

FIRM SPECIFIC HUMAN CAPITAL AS AN EMPLOYER DISCIPLINE DEVICE

The inability of employers to monitor perfectly the level of effort of their employees is a potentially serious impediment to labor market efficacy. Indeed, a number of recent studies have concluded that this may lead to involuntary unemployment (Shapiro and Stiglitz [1984], Sparks [1986]); an inefficient sectoral allocation of workers (Oi [1990], Strand [1986]); and discrimination against productively identical workers (Bulow and Summers [1986]). This paper shows that the lock-in effect of firm-specific human capital can help alleviate problems of worker moral hazard and thereby promote labor market performance.     

The desire for impact

This paper explores the meaning and implications of the desire by workers for impact. We find that this impact motive can make a firm in a competitive labor market face an upward-sloping supply curve of labor, lead workers with the same characteristics but at different firms to earn different wages, may alleviate the hold-up problem in firm-specific investment, can make it profitable for an employer to give workers autonomy in effort or task choice, and can propagate shocks to unemployment.     

The Wages of Aging: Time-Related Determinants of Earnings in the Southern Textile Industry*

The author distinguishes three time-related worker characteristics: physical facility, skill, and firm attachment. In an analysis of wage determination for a sample of textile production workers physical facility and firm attachment, but not skill, had significant curvilinear effects, These, along with exogenous effects of gender and race and endogenous effects of assignments to machine maintenance and to a weave room, are interpreted as reflecting power relations in the contemporary context of the southern textile labor process and labor market. The analysis emphasizes the critical importance of contextual considerations in operationalization, specification, and interpretation for wage determination studies.     

Uneven Development in North Carolina? Job Quality Differences Between Local and Nonlocal Firms1

Abstract Do outside firms come to North Carolina or, more generally, to the rural South to take advantage of the low-wage unorganized local relations of production? Do they disrupt local labor market arrangements? We use data from a survey of North Carolina employees to examine labor market and job quality differences between local and outside firms and also the organization of regional labor markets. Results, based on multiple regression models, suggest that outside firms provide higher quality jobs, mediated by organizational resources and internal firm relations of production. Urban Piedmont labor markets provide better jobs than rural labor markets, regardless of the establishment's ownership locale. Generally, uneven development predictions are supported by additive models, but challenged by additional analyses of interactions. These analyses suggest that outside firms may be undermining local relations of production in rural North Carolina. Results of this research present rural policymakers with a challenge for future economic development strategies.     

Stained Steel: ESOPs,Meta‐Power,and the Ironies of Corporate Democracy

This case study examines the situated interactions between management and workers during a proposed sale of stock by a U.S. steel manufacturer. Our focus permits a fine‐grained analysis of how varieties of meta‐power both condition and are contested in situated interactions. In our setting, the workers owned the company through an employee stock ownership plan, thereby confounding the traditional hierarchical relation between management and workers. While the contrast between these forms of social organization framed the boundaries for subsequent social interactions, it also served to animate conflicts between workers and management. We found that though the worker‐owned company proclaimed values of “corporate democracy” and “employee participation,” executive management acted as a relay to transmit the disciplining effects of “market forces.” Accordingly, the latter served as an “invisible proxy” reinforcing traditional hierarchical social relations that problematized worker participation. The ironies of corporate democracy abound when worker‐owners find themselves shadow boxing anonymous capital.     

Emotional labor in social workers' practice

The meeting between service users and social workers is emotional, since it is centered on significant challenges and changes in the service users' lives. Emotions are thus always at play in social work, but are managed in various ways by the professional. In an explorative qualitative case study at two Danish social services departments, we identified three types of emotional labor: (1) when the social worker shuts off emotions both during and after the meeting; (2) when the social worker defers emotions and processes them at a later time; and (3) when emotions dominate, and a case gets ‘under the skin’ of the social worker. Emotional labor can have both positive and negative effect on the work, and knowledge about different kinds of emotional labor can aid professional discussion about emotions at the work place as well as the psychosocial working environment for the social workers, factors which help improve practice. The study showed that emotional labor is a multidimensional concept, hence it is not just managed in different ways by social workers; it is always related to the specific emotion culture and the community of practice at the work place.     

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.     

社会关系、初职获得方式与职业流动

关系使用者是一个高度异质性的群体,区分不同类型的关系使用者对理解社会关系的作用机制及其对劳动力市场结果变量的效应非常重要。根据初职获得的方式,本研究将劳动者分成三个群体,即通过正式渠道(不使用关系)、正式渠道与关系相结合(正式+关系)以及完全通过关系获得初职的群体。使用2009年八城市社会网络与职业经历问卷调查(JSNET2009)数据,本文探讨了这三个劳动者群体的特征以及他们在职业流动和收入分层模式方面的差异。研究发现,使用正式+关系方式获得初职的劳动者群体和完全通过关系获得初职的劳动者群体的特征及其劳动力市场经历是截然不同的。首先,前者是高社会经济地位的群体,他们有较高的人力资本以及质量最高的社会网络资本;而后者是低社会经济地位的群体,他们自身的人力资本最低,而且社会网络资本的质量也是最差的。其次,后者比前者更可能换工作(离开初职)。第三,两个群体收入获得的决定因素方面也体现出显著的差异。     

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.     

Experiences of white-collar job loss and job-searching in the United States

Unemployment is a pervasive and stubborn feature of contemporary social and economic life. This review article focuses on the meaning and experience of contemporary white-collar unemployment in the United States. After explaining the empirical and theoretical rationales for the focus on white-collar workers, this review delves into three aspects of white-collar unemployment: who loses jobs; what unemployment means for one's sense of self, marital relationships, parent-child relationships; and how the process of job-searching and re-employment unfold for unemployed white-collar workers in the US. Throughout, I take an intersectional approach, identifying how sensitivity to structural location in the labor market and the family can augment our sociological understandings of these important issues. I close by suggesting directions for future research.     

Die soziale Diffrenzierung der Übergangsmuster in den Beruf

Growing risks in working lives and in the transition to the first job are supposed to be a core characteristic of labor market changes in the last two decades. However, they cover heterogeneous phenomena that have to be treated separately. Regarding the job entry process among in-firm training diploma holders, firm shifts, occupational shifts and unemployment represent distinct indicators of non-standard transitions to the first job. The empirical analyses, using data from the German IAB-employment-subsample 1975–1995, show that transition patterns have changed differently in the respective cohorts. The probability of experiencing specific transition patterns strongly depends on social structural as well as occupation-specific characteristics. The strongest risks at labor market entry are associated with combined firm and occupational shifts. There is no coherent evidence of a dominant trend towards less structured job entry patterns.     

Social Work and the Treatment of Substance Abuse in Israel

SUMMARY

This paper examines the role of the social worker within the field of substance abuse in Israel at the start of the 21st century, its implications for the profession, and the training of its practitioners. Addiction to psychoactive substances is viewed as a bio-psycho-social phenomenon caused by a wide variety of factors and the respective interactions between them, placing it within the realm of the expertise of the social worker. The social worker plays a central role in providing both administrative and clinical interventions with this population. Additional ways in which the education and training of social workers can prepare them to deal more efficiently and comprehensively with the problem of substance abuse in both practical and academic terms is discussed.     

LABOR QUEUES AND INVOLUNTARY UNEMPLOYMENT

This paper outlines a job search model which emphasizes the placing of applications by job searchers and the firm's use of a queue of applicants as an inventory of labor. The paper analyzes the consequences of the assumption that firms hold queues of applicants both for the decisions of a single firm and for a market composed of several such firms. The aggregate results suggest that considering such labor market queuing helps explain wage rigidity and involuntary unemployment.     

Learned helplessness,discouraged workers,and multiple unemployment equilibria

Unemployment varies strongly between countries with comparable economic structure. Some economists have tried to link this to institutional differences in the labour market. Instead, this paper focuses on a model with multiple equilibria so that the same socioeconomic structure can give rise to different levels of unemployment. Unemployed workers’ search efficiency is modelled within an equilibrium search model and lay behind these results. Learned helplessness causes a pro-cyclical behavior of the aggregate search efficiency, also known as the discouraged worker effect. The model also offers an explanation of why unemployment seems to move more easily up than down.     

International migration in a changing world

This paper eulogizes the life and work of Gunther Beijer (1904-1983), an international migration research supporter, who was himself a refugee from Nazi Germany. The brain drain of professional workers of other nations into such traditional receiving countries as the US, Canada, and Australia particularly interested Beijer. The creation of many independent nations after World War II changed migration trends greatly. By the 1970s the immigration policies of receiving countries had changed to favor non-Caucasian professional workers and relatives of current residents. This new migration may be classified as 1) permanent settler, 2) guest worker, 3) professional transient, 4) clandestine, and 5) refugee. Non-Caucasian immigrants increasingly find that they may not be wanted when perceived as an economic or social threat. Beijer understood guest worker migration within Europe in the early 1960s, but he could not foresee the demands that guest workers and their families would place on receiving countries. Guest worker migration gives sending countries relief from unemployment and provides remittances; it also provides needed labor to economically health countries. Guest workers such as those currently employed in the Persian Gulf may not be accepted socially or politically by the host community and may be considered undesirable employees on their return home. Nations often tolerate illegal or clandestine migration when the labor need is high, but illegals may be expelled when economic or political conditions turn against them. The problems of the estimated 10 million refugees fall increasingly on developing countries, but must be shared by all nations since their increasing numbers affect domestic and international politics.     

LABOR MARKET SHARE CONTRACTS WHEN THE FIRM HAS TWO VARIABLE INPUTS

This paper extends Weitzman's analysis of share contracts. Firstly, a second variable input is introduced into a firm's production technology. Some share contracts give the firm an incentive to reduce worker compensation by manipulating the second variable input. This implies that contracts which possess this property cannot support the same long-run equilibrium as would be achieved with a wage contract. Secondly, a positively sloped labor supply curve is introduced. It is shown that while share contracts reduce involuntary unemployment, they may not reduce total unemployment vis-a-vis wage contracts. The paper identifies the factors which determine relative employment variability.     

LABOR MARKET PERFORMANCE EFFECTS OF DISCRIMINATION AND LOSS OF SKILL

We examine the impact of discrimination on labor market performance when workers are subject to a risk of losing skills during an unemployment experience. Within a search and matching framework, we show that both natives and immigrants are affected by discrimination. Discrimination in one sector has positive spillovers, inducing employment to increase in the other sector and the effect on labor market performance therefore depends on whether discrimination is present in only one sector or in both. Discrimination may induce workers to train more or less than natives after having lost their skills, dependent upon in which sector there is discrimination. Net output tends to be most negatively affected by discrimination among high‐skilled workers. (JEL J15, J31, J61, J64, J71)