DO REEMPLOYMENT PROGRAMS FOR THE UNEMPLOYED WORK FOR YOUTH? EVIDENCE FROM THE GREAT RECESSION IN THE UNITED STATES

We present experimental evidence on the effects of four U.S. reemployment programs for youth unemployment insurance (UI) recipients during the Great Recession. The three programs that emphasized monitoring and service referrals reduced UI receipt but had minimal effects on employment and earnings; these programs mainly induced the early exit of participants. The fourth program, which combined mandatory job counseling with monitoring, caused the largest reductions in UI receipt and clearly increased employment and earnings. Both early participant exits and effective job counseling underlie these impacts. We conclude that policymakers should require job counseling for youth UI recipients during recessions. (JEL J0, J6, H4)     

Social innovations for social cohesion in Western Europe: success dimensions for lifelong learning and education

In addressing the EU2020 goals, skills shortage combined with increasing unemployment rates is to be primarily tackled in Western Europe; the common factor here is education. Education and lifelong learning (LL) are the key strands governing employability in the European labour market. Overarching concepts capable of addressing social challenges within education and LL that contribute towards better practices are seen as social innovations (SI). While SI in education is well founded in the developing countries, Europe is still in the process of gaining progressive momentum in this direction. In addressing various societal challenges, this study looks at observable trends in SI for education across Western Europe. About 30 innovations have been recorded across 11 countries that are essentially focussed on: social integration, alternative/new forms of education, digital learning, new learning arrangements, new LL strategies, early career planning, youth employment, quality improvements and new education standards, transition management, and entrepreneurial education.     

Coping with the unemployment crisis in Europe

Since the 1970s, Europe has been plagued by a chronic unemployment crisis, which has escalated with the current Great Recession. The author discusses a number of relevant elements in this regard, including the extent to which social dialogue and social pacts have been successful in reforming labour markets and pension systems, the effect of active labour market policies and the characteristics of “resilient” economies. She concludes with the need to rethink social dialogue, social safety nets, the granting of loans – especially to SMEs – and the coordination of macroeconomic policies to increase labour demand.     

A multidimensional employment quality index for Brazil, 2002–11

In countries where informal, insecure jobs are widespread, traditional labour market indicators – such as the unemployment rate, labour force participation rate and wages – are not necessarily the most meaningful. The authors use a multidimensional employment quality index to analyse the Brazilian labour market over the period 2002–11, across three dimensions: earnings, formality (measured by the existence of an employment contract and social security contributions) and job tenure. The results show a significant increase in employment quality overall, especially in the years 2009–11, but with considerable differences between wage employees and self‐employed workers, and between industries.     

SOURCES OF EARNINGS INEQUALITY IN THE BLACK AND WHITE FEMALE LABOR FORCES

Earnings inequality trends and their sources from 1975 to 1986 are evaluated for two historically subordinate working groups—black and white women—using Current Population Survey data. The dual nature of women's employment, improved earnings opportunities, and continuing segregation into low-paying positions create conditions under which earnings inequality in these two groups is expected to increase. Two sources of changing inequality levels are examined to determine which better explains inequality trends: the redistribution of women across labor market positions, which should have occurred due to industrial restructuring; and changes in the rates of earnings returns to labor market positions. For both groups, changes in returns better explain positive inequality trends in the 1980s, although black women's earnings are somewhat more influenced than whites' by their redistribution across labor market positions.     

DOES THE GREAT RECESSION IMPLY THE END OF THE GREAT MODERATION? INTERNATIONAL EVIDENCE

In this paper we examine whether or not the Great Recession had a temporary or permanent effect on output growth volatility after years of low macroeconomic volatility since the early eighties. Based on break detection methods applied to a set of advanced countries, our empirical results do not give evidence to the end of the Great Moderation period but rather that the Great Recession is characterized by a dramatic short‐lived effect on the output growth but not on its volatility. We show that neglecting the breaks both in mean and in variance can have large effects on output volatility modeling based on GARCH specifications. (JEL E32, C22, O40)     

All roads leading to Rome? The medium term outcomes of Australian youth’s transition pathways from education

Young people’s transition from education into the labour market are diverse: sometimes direct from school to work or inactivity, sometimes characterised by stop-starts and combinations of different activities. This paper explores the association between transition pathways of Australian youth and their outcomes, in terms of earnings, perceptions of employment opportunities and debt. It builds on analysis by Fry and Boulton [2013. Prevalence of Transition Pathways in Australia. Canberra: Productivity Commission Staff Working Paper] who identified five pathways most typically taken by 15–24 year old Australians over a 10 year period, including quasi linear transitions from education to work with and without study, combinations of work and study, multiple churning between labour market statuses, and transitions into prolonged periods of inactivity. The present study adds four more years of panel data that have since become available, and compares the labour market outcomes of the different pathways at age 29–38. Earnings and employment perception converged over time, but debt did not. Socio-demographics were most strongly associated with outcomes, but earnings were also greater for churners and for young people in extended education increasingly combined with work. Transitions that combined learning and work seemingly strategically or ‘flexibly’ appeared most rewarding in the medium term, although neither compensated for socio-economic difference.     

Children's attitudes to parents', teachers' and employers' perceptions of term‐time employment

This article is concerned with examining working children's perceptions of how adults in a range of different settings view their employment. In particular, the article explores how participation in the labour market influences adult‐child relationships within the home, at school and at work. Children interact with adults across a variety of different spheres. Dependence and independence permeate children's relationships with adults in different social settings. Entry to the labour market and access to earnings promotes responsibility among children and encourages self‐reliance. The purpose of the article is to assess the extent to which these traits affect children's interaction with adults within and across the social spaces of the home, school and place of employment. Copyright © 2003 John Wiley & Sons, Ltd.     

Economic Conditions of Young Adults Before and After the Great Recession

Transition to adulthood has undoubtedly changed in the last few decades. For youth today, an important marker of adulthood is self-actualization in their professional career, and, consequently, also the achievement of stable financial conditions. Economic conditions of youth are greatly subject to fluctuations in the economy, and the subsequent governmental response. Using the Luxembourg Income Study, this work investigates the trends in income from work of young adults before and after the Great Recession of 2008 in five countries—US, UK, Norway, Germany, and Spain. The findings showed deterioration in economic conditions of young men, but with differences across countries. Young women suffered less from the crisis, and in some countries, their economic situation improved. The general negative trend was especially pronounced for those with high education, which is primarily because they stayed in education longer.     

Economic growth,labour flexibilization and employment quality in Colombia, 2002–11

Over the period 2002–11, the Colombian labour market saw a marked improvement in employment opportunities, accompanied by an increase in nonstandard forms of employment. The authors look at how this affected employment quality, using a composite index based on Categorical Principal Components Analysis (CATPCA). They observe a small but widespread improvement in employment quality – mainly for self‐employed women – brought about by higher earnings, increased social protection and less time‐related underemployment. However, a considerable “quality deficit” remains, which calls for policies to strengthen labour market institutions and stimulate productivity and investment.     

Fractured lives: understanding urban youth vulnerability in Perú

ABSTRACT

The paper reports on a mixed methods study that sought to analyse determinants of youth labour market and educational disengagement in Peru. It begins by questioning the widespread focus on NEET – youth not in employment, education or training – as a measure of youth vulnerability in countries with extensive informal labour markets where labour precarity can be as problematic as unemployment for young people’s futures. A broader category of ‘urban vulnerable’ youth, including both NEET and precarious workers, is proposed and used as the basis for analysing the factors that influence young people’s trajectories. Key factors and shocks in youth trajectories are identified through qualitative life histories, and are tested using cross-section and panel survey data. Findings from the study have implications for the analysis of youth labour market vulnerability in the Global South, as well as for the policies that seek to address this problem.     

Trapped in the Working Class? Prospects for the Intergenerational (Im)Mobility of Latino Youth

Opportunities for upward mobility have been declining in the United States in recent decades. Within this context, I examine the mobility trajectories of a contemporary cohort of 1.5‐, second‐, and third‐plus‐generation Latino youth. Drawing on survey data from California that accounts for the precarious legal status of many 1.5 generation immigrants, I find that Latino youths' patterns of postsecondary enrollment and employment do not differ by generation since migration. Additionally, I do not find evidence of racial/ethnic barriers to Latino youths' enrollment in less selective colleges and participation in the labor market. Yet, given the low socioeconomic origins of many Latino youth and their correspondingly low 4‐year college enrollment rates, only a small proportion will likely enjoy upward mobility through jobs that require a bachelor's degree. Overall, the cohort of Latino youth coming of age during the Great Recession is poised to experience working‐class stagnation. This group's future access to economic and political positions of power will likely be limited by their low enrollment rates in 4‐year colleges in general, but in selective postsecondary institutions in particular.     

Can welfare and labour market regimes explain cross‐country differences in the unemployment of young people?

No single institution can reduce (long‐term) youth unemployment. Welfare and labour market institutions function as “bundles”, through multiple inter‐institutional synergies. Based on a focused literature review for theory and on cluster analysis for empirics, the author identifies five such regimes across the EU‐27 and estimates their effects on the youth unemployment ratio and on long‐term youth unemployment. The most helpful institutional arrangement for young people in the labour market would be a combination of strong dual apprenticeship embedded in a corporatist labour market regime with high levels of social security, active labour market policy, and spending on education and childcare.     

Ethnic Enclaves,Networks and Self‐Employment among Middle Eastern Immigrants in Sweden

The proportion of immigrants from countries in the Middle East living in Sweden has increased since the 1970s, and it is a well‐known fact that immigrants from the Middle East suffer from low earnings and high rates of unemployment on the Swedish labour market. There are often great hopes that self‐employment will enable immigrants to improve their labour market situation. Further, in Sweden as in many other countries, the question of whether the existence of ethnic enclaves are good or bad for immigrants’ earnings and employment opportunities has also been widely debated. This paper presents a study of the extent to which Middle Eastern ethnic enclaves and networks in Sweden enhance or hinder immigrants’ self‐employment. The results show that the presence of ethnic enclaves increases the propensity for self‐employment. Thus, immigrants in ethnic enclaves provide their co‐ethnics with goods and services that Swedish natives are not able to provide. The results also show that ethnic networks seem to be an obstacle to immigrant self‐employment. One explanation is that an increase in network size implies increased competition for customers among self‐employed immigrants. The question of whether ethnic enclaves are good or bad for the integration of immigrants into the labour market has been widely debated. The results of this paper provide us with information about the integration puzzle. Ethnic enclaves seem to enhance self‐employment propensities among Middle Eastern immigrants in Sweden.     

Navigating employability from the bottom up

ABSTRACT

Research focusing on young people’s career trajectories has emphasised ‘graduate employability’ with much less attention being afforded to the employability strategies used by disadvantaged youth, including the social, political and labour market contexts in which these emerge. This study explores how young people enrolled in entry-level, vocational training courses in Australia attempt to enhance their employability. Interviews explored perceptions of individual employability, the strategies utilised to improve employability, and the economic, personal and employment consequences of these strategies. Three main employability strategies were identified: gaining qualifications to meet employment expectations; securing work experience in a competitive labour market; and addressing economic and social challenges to secure and sustain employment. The study reveals how the dominant narratives of employability in education and employment policy are misaligned with the economic, social and labour market challenges faced by disadvantaged job-seekers with respect to notions of career and ‘fit’ between the individual and the labour market. Policy responses need to take account of the diverse ‘bottom up’ experiences and circumstances of different cohorts of young people.     

Youth Perspectives on Social Insurance in Egypt: Qualitative Insights on the Gap between Legal and Effective Coverage

A gap between legal and effective coverage rates is a common challenge facing social insurance systems in Low‐ and Middle‐Income Countries. This article draws on an exploratory qualitative study with youth in Egypt to examine how labour market dynamics and worker preferences contribute to this gap. Labour market factors, particularly instability of employment and job mobility, were found to reduce the perceived value of social insurance. Poor understanding of how social insurance works was another contributing factor. However, youth displayed a high level of trust in the public social insurance system and saw pensions as valuable in the abstract. In combination with awareness promotion, eliminating penalties to discontinuous labour force participation could make social insurance more attractive to youth.     

Measuring employment deprivation in the EU using a household-level index

We propose an aggregate measure of employment deprivation among households that follows a methodological framework developed to measure wellbeing. This index verifies a set of reasonable axioms that other available measures do not: increases in three relevant employment deprivation elements-incidence, intensity and inequality. Incidence captures how many households in a population are touched by a lack of employment, while employment deprivation intensity reflects how far households are, on average, from being non-deprived of employment. Finally, employment deprivation inequality increases with the concentration of unemployment among few households. Based on this index, we analyze employment deprivation across the European Union using information from Labor Force Surveys during the current “Great Recession.” Our results provide evidence on the relevance of incorporating the household dimension to identify unemployment profiles, with a variety of implications, in terms of household wellbeing. Specifically, we show that countries with similar (intermediate) unemployment rates differ in their patterns of employment deprivation once the structure of employment across households is incorporated.     

The impact of early life-course transitions on equality at work and home

This paper investigates two aspects of the paid employment relationship between female and male partners aged 23. It is argued that in order to understand women's position in the home and the labour market it is necessary to consider employment relationships in the context of the household. The impact of children on women's labour force participation is already well known and in this paper we show that marriage also has an independent effect on hours worked. The second aspect of the paper concerns the relative financial contribution of each partner to the family income from their labour market earnings. It is recognised that power and equality within the home are to some extent derived from the relative contribution of partners to the family income. It is shown that women are economically dependent on men even in the early stages of their partnership before children and that this dependence is greater among women with children.     

Six central features of the Chinese labour market: A literature survey

In this comprehensive analytical overview, the author pays particular attention to the changing structure of China's employment towards more private‐sector jobs in urban areas; its rising wages and widening earnings inequality; the persistence of its hukou system, causing labour market discrimination, an urban labour shortage and a rural labour surplus; its more market‐oriented wage structure, albeit with segmentation between firm ownership types; its relatively low unemployment; and the relatively weak role of its traditional labour market institutions, including minimum wages and trade unions. The aim is to contribute to the development of more suitable, China‐specific theoretical models and sound policy analysis.     

Income taxation and the allocation of market labor

The allocation of work effort within the market economy will be unaffected by taxation if all returns from labor market activity are taxed equally. However, if the earnings from certain types of market employment are taxed at relatively lower rates, labor will shift into these areas until after-tax earnings are equal across all types of employment. This paper presents evidence suggesting that income taxation induces labor to move from high- to low-tax geographic areas and from wage and salaried jobs into self-employment activities. By affecting the allocation of market labor, the income tax generates a welfare loss in addition to that resulting from the tax’s effect on total work effort.