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 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.     

The transition of the mentally retarded from school to work: The implications of structural unemployment

The recent federal policy initiative placing a national priority on the transition of individuals with disabilities from school to working life has focused a great deal of attention on issues of employment of the disabled. However, most of the discussion and activities have concentrated on the supply side of the equation: training for employment, job design, and the social and economic value of work. Relatively little attention has been paid to the question of demand for workers with disabilities or the nature of the labor market they face. This paper examines the question of employment for one group of disabled, those with mental retardation. We analyze the factors influencing the ability of the economy to absorb these new workers and make a series of recommendations for policy research needed to facilitate the success of the transition policy.     

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.     

Jobs for Mothers: Married Women's Labor Force Reentry and Part-Time,Temporary Employment in Japan

This paper explains the increase in middle-aged women reentering the labor force in Japan and their concentration in part-time or temporary employment. Existing explanations attribute women's concentration in part-time employment too narrowly to supply or demand factors. In Japan, both the labor supply of middle-aged women and the demand for part-time workers have increased, but these conditions channel middle-aged women into part-time or temporary employment only when systematic barriers obstruct their access to full-time jobs. Because it plays an important role in women's employment decisions, the rigidity of standard, full-time employment needs greater attention in studies of nonstandard, atypical types of work.     

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.     

Over the Hill,Under Siege: Labor Force Graying,Labor Market Pushes,and Consequences for Life Chances

Interest in older workers has recently expanded due to concerns over labor force “graying.” Research and policy on aging adults' labor market participation have, thus far, framed the decision to labor as one shaped solely by the desires and capacities of older workers themselves. This perspective fails to recognize how multiple employer‐side barriers play a large role in defining – and limiting – available choices. In this review, I synthesize the multi‐disciplinary literature on employer‐side barriers to older workers' labor market participation. In particular, I identify and discuss individual‐, meso‐, and social structural‐level barriers that uniquely affect this group, noting where gaps in understanding remain. I consider older workers primarily as a whole to demonstrate how age operates as a distinct, important identity; however, I also reflect on how age overlaps with both other identities and cohort membership. Next, I briefly consider the relationship between these employer‐side barriers and aging adults' life chances, particularly in an era of austerity. Although I focus on the United States case, I also note key cross‐national similarities and differences. Finally, reflecting upon the foregoing review, I suggest that a redirection of public policy is necessary to effectively respond to this contemporary demographic shift.     

Failing to Make Ends Meet: Dubious Financial Success Among Employed Former Welfare to Work Program Participants

To many, declining caseloads and increased labor market entry substantiate welfare reform’s success. This study examines how Louisiana welfare to work program participants who succeeded by leaving assistance and obtaining employment are making ends meet, if their needs are met and which characteristics are associated with having their needs met. Telephone survey data reveal low wages, informal labor market activity, government, community, and social support use, and notable levels of unmet needs. A multivariate analysis shows workers with higher earnings and regular nonmonetary help from family and friends are likely to have more needs met. Those likely to have fewer needs met report lower wages, more young children, use of government support programs and informal labor market activity.     

Adult vocational training for migrants in North‐East Italy

This article contributes to the study of policies for the integration of immigrants into the labour markets of European immigration countries by focusing on the specific issue of vocational training for immigrant workers in Italy. Vocational training has a central role in the European employment strategy. Moreover, with regard to migrants, it is also relevant to the topical issue of the governance of international labour migration. The article analyses both the demand and the supply of vocational training in north‐east Italy, generally regarded as the rich and industrialised heart of the country. It draws on 30 interviews conducted with key informants and experts from local and regional governmental bodies, trade unions, employment offices, and private educational agencies in the main towns of the Veneto region. Various types of vocational training for immigrant workers are considered, from traditional full‐time courses financed by the European Social Fund to new projects for the selection and pre‐training of immigrants in their countries of origin. The extent to which these policy tools are able to meet the actual needs of immigrant workers and of the local business sector is investigated, as well as their problematic interaction with the national regulatory framework for immigration control.     

Urban development and employment in Abidjan

The city of Abidjan in the Ivory Coast has grown physically, economically, and demographically at rates exceeding all reasonable expectation. Yet, as in many other development nations, the employment generated by Abidjan's rapid economic expansion has failed to keep pace with the increase in working population it has attracted. Consequently, economic success has been accompanied by a variety of social strains. Some of these have been discussed in earlier issues of the "International Labour Review" by Louis Roussel. This discussion expands on Roussel's earlier treatment by focusing more specifically on several facets of the urban employment problem created by the rapid growth of Abidjan. Attention is directed to labor supply and employment, factors affecting migration, foreign Africans in the Ivory Coast labor force; the urban informal sector; urban infrastructure and development; social problems of population pressure; employment policy options (current government policies and other policy options); and general issues and policy alternatives (motivations for rural urban migration, smaller urban centers as alternative growth poles, and distributing the gains from development). Several essential features of the employment problem stem from the rural urban distribution of the workforce. The rural labor force, including temporary seasonal workers from the savannah countries to the north, remains more or less in balance with increasing rural employment opportunities, since the migration of Ivory Coast nationals to the cities is balanced by the inflow of foreign workers. In contrast, the influx of migrants into urban areas has led to a more rapid increase in the urban labor force than in urban employment, with a consequent rise in unemployment. In 1970 the Abidjan rate of open unemployment was probably around 20%. At this time, most people's idea of a desirable job is one in the formal sector of the urban economy. If there is to be any hope of an eventual balance between expectations and reality, it must be realized that an increasing share of the urban labor force will have to end up in the informal sector. Different attitudes towards work in the informal sector are needed on the part of both young people entering the labor force and of government policy makers. The latter should be seeking ways to increase productivity and incomes in the informal sector rather than for ways to destroy it. Current government policies include the training and educating of nationals to replace foreign technicians and managers, increasing the attractiveness of the rural milieu by the promotion of cooperatives, attempts to reform the land tenure system, the supply of electricity to villages, and the introduction of educational television; and adapting the educational system and technical training programs to the needs of the economy.     

A help or a hindrance? The impact of job training on the employment status of disadvantaged women

The objective of this study is to evaluate whether welfare-sponsored, government-funded job training helps participants improve their employment status. The negligible effects found in prior studies may be due to design limitations or inherent flaws in job training programs and therefore do not necessarily contradict human capital theory. The present study uses longitudinal and representative data, dynamic modeling techniques, an appropriate counterfactual, and important contextual variables to assess the likelihood of obtaining employment for job training participants and nonparticipants. It also describes the types of jobs women obtain by examining wages, industry, occupation, and labor union membership. Whereas some of the results support prior research, the focus is on the unique contributions of this study, which include a differential training effect for full- and part-time workers and a detailed analysis of macro-structural variables, which are rarely included in studies of labor supply.     

SOURCES OF ORGANIZATIONAL COMMITMENT: THE EFFECTS OF INTERNAL LABOR MARKETS AND WORKER VALUES

Data from the 1991 General Social Survey and National Organizations Survey are used to assess how organizational commitment is structured by one “demand side,” organizational-based factor, firm internal labor markets, and one “supply side,” individual-based factor, the values/preferences of workers. Findings indicate that organizational commitment is best explained by the joint influence of these two factors rather than by their independent effects. Specifically, firms with internal labor markets are conducive to the development of high levels of organizational commitment to the extent that what they offer, namely, opportunities for career-status and long-term employment “fit” what workers desire: job security and possibilities for promotion with their current employer. We offer directions for future research that may shed additional light on the manner in which internal labor markets and the values/preferences of workers may structure organizational commitment.     

Unemployment,Reemployment, and Health Insurance Status Among Older Workers in the Flexible Labor Market

As employment becomes more precarious, and spells of displacement become more common across the labor market, many individuals are forced to make decisions about the speed at which they seek reemployment and the types of employment they will seek. Using repeated cross‐sectional data from various years of the Displaced Worker Supplement of the Current Population Survey, we examine the degree to which employer‐provided health insurance and organizational provision of advanced layoff warning helped workers—particularly those from earlier birth cohorts—navigate the labor market during a period of growing employment flexibility. Our results indicate that workers from older cohorts, rather than older chronological ages, suffered more from displacement in terms of longer unemployment spells and declines in job quality upon reemployment. Workers able to obtain a job with health insurance had shorter unemployment durations, while those displaced from jobs with health insurance remained unemployed for longer periods of time. Advance notice appears to reduce some of the disproportionately negative effects of displacement for older workers, perhaps by easing the shock of a psychological contract breach. Our findings point to the importance of historical and cultural factors in shaping labor market outcomes.     

The Impact of Extending Working Lives on Youth Employment in Great Britain

ABSTRACT

The article investigates the association between youth and older workers’ employment participation in the United Kingdom using yearly data provided by the Labor Force Survey. Presenting a short state of the art, the paper shows that, with few exceptions, empirical analyses usually assume that increasing the labor market participation of the older workers does not affect negatively youth employment. Nevertheless, testing several variables and three different statistical models, the empirical part of the article nuances this evidence. The association between youth employment participation and older workers’ employment participation tends to be significantly after controlling for public policy outcomes.     

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.     

Labour migration from South and South-East Asia: some policy issues

The rise in migration for employment since the mid-1970s has had serious consequences for many Asian countries. This discussion examines the issues raised by the migration abroad of thousands of skilled workers and the efforts that sending countries have made in recent years to bring the effects of labor migration more closely into line with their development objectives. It also considers several problem areas requiring the attention of policymakers and authorities responsible for the administration of overseas employment policies. It is estimated that between 1976-81 annual labor migrant flows from the 8 major sending countries in Asia increased sevenfold, from a mere 146,400 to over 1 million. The Asian migrant workers tend to be young, male, married (with dependents in the sending country), and better educated than the average home population. Most of them come from rural areas and are predominantly employed in construction and labor. The most distinctive feature of these workers is their concentration in a few blue collar occupations--carpenters, masons, electricians, plumbers, lorry drivers, mechanics, and heavy equipment operators. These production and trnasport workers outnumber the professional and technical workers by anywhere from 3 to 1 (Philippines) to 17 to 1 (Pakistan and Sri Lanka). At the aggregate level labor emigration affects the sending country's economy through its impact on the labor market, on the financial market, and on the market for goods and services. It can be argued that the outflow of a significant proportion of the labor force should lead directly to a rise in labor projectivity in the sending country since capital per worker among those left behind will increase, yet it can also be argued that since migration sifts out the most skilled and experienced workers there will be an erosion of the country's human captial resources. Specific measures have been adopted in most labor sending Asian countries to protect the welfare of migrant workers, to regulate conditions of employment abroad, to restrict the outflow of scarce skills, and to secure new overseas markets for nationals. Despite the efforts of governments to ensure that workers have satisfactory contracts on going abroad, many cases of "contract substitution" have been reported. The present attitude of many governments toward private recruiters seems to reflect both an acknowledgement of their effectiveness in finding job placements overseas and a growing concern to regulate their activities. The present trend seems to be to allow private agencies easier access while exercising greater supervision over those permitted to operate. The impact of labor migration on the labor markets of sending countries has not been uniformly damaging, but most of the countries have adopted 1 kind of policy or another to reduce the outflow of scarce skills. The use of material and other incentives for retaining workers in the country has obvious advantages but is not very widespread.     

The return of international labour migrants in the ESCAP Region

The social phenomenon of massive temporary international labor migration from the ESCAP region has emerged extremely rapidly. Within 10 years, the number of persons from ESCAP countries grew from a negligible one to 3.5 million. Related research and government policies have lagged behind this latest surge in migration. Most research conducted has been small-scale and lacks an analytical or theoretical framework. Policy formulation for temporary labor migration is difficult because most of the rapid growth in the industry has occurred as a result of private efforts, with a minimum of government intervention. It is now difficult, for the government to provide effective regulations or measures to stimulate and assist the process. Regulations on compulsory remittances or overseas minimum wages have proved to be unrealistic and, if not rescinded, are routinely circumvented. The most effective policies to assist return migrants may not be those which are intended to do so, but those which control the earlier stages of the migration process, such as recruitment, working conditions, and banking arrangements. The most valuable policies may also include those affecting education, training, employment, and general socioeconomic growth. Governments are recommended to provide social services for migrants and their families who are experiencing problems, and to institute community programs in areas with a large number of labor migrants. Governmental efforts to promote forms of labor migration beneficial to the workers would be valuable and should include measures to identify overseas labor markets for employing its nationals, government ot government labor contracts, and government participation in joint-venture projects. International migration should be analyzed in the context of theories and social change in order for governments to formulate effective measures for the reintegration of returning workers. Labor migration on the current scale has many social implications for the sending countries; relationships between employers and employees, the government and private sectors, and white and blue collar workers are affected. Social change and technological innovation will become more rapid, women's status and family roles will change markedly, and behavior is likely to become less conformist and more individualistic.     

A DISEQUILIBRIUM MODEL OF A HIRING-HALL LABOR MARKET

This paper analyzes a labor market in which workers possess incomplete information about their exchange opportunities. Within this environment workers allocate time to the acquisition of job-related information. Rules are specified determining where workers will seek employment and how firms will vary wages in response to workers' choices. Assuming a change in workers' notional labor supply, the paper then analyzes the dynamics of labor market disequilibrium. Two principal conclusions emerge: (1) Workers' time costs of acquiring information rise during disequilibrium. (2) In general the final wage differs from the wage that would prevail if a Walrasian auctioneer guided the labor market's adjustment.     

Doing good while doing business: Using financial viability to enhance employability for the disadvantaged

The employment social enterprise (ESE) model can provide an opportunity to create a financially viable business that helps individuals with employment barriers become integrated into the labor force. This research studied eight ESEs. Findings suggest that by applying private‐sector business principles to a workforce development programs, social enterprises can provide participants with meaningful and valuable work experience, while offsetting program costs. Analysis identified four promising practices that social entrepreneurs should adopt when setting up a new enterprise. Enterprises should (a) provide soft‐skill training and social services to participants; (b) operate at a size that allows for economies of scale in production and the provision of support services; (c) have few occupational skill requirements; and (d) hire supervisors with both industry knowledge and the capacity to support individuals with employment barriers.     

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.