On the integration of labor markets: A definition and test of the radical — Segmentation hypothesis

The empirical results of this paper are indicative of overall labor market integration. Segmentation theories are not supported by the high covariability of wage rates supported by this test. If segmentation theories are to mean more than that relative wages differ among industries, proponents of such theories must argue that segmented markets are cut off from other markets and able to resist the forces of supply and demand. Indeed if labor unions are to be able to insulate workers from market forces they must also segment their markets. The results of this paper indicate that unions are not able to insulate their workers from market forces. We are grateful to William Boyes, Dennis Logue, John Bishop, Stephen E. Baldwin, William McEachern, Roger Sherman, and Robert Tollison for comments on earlier versions and to James Bennett and an unidentified referee for comments on this final version.     

Migration Differentials in Women's Market Employment: An Empirical and Multicultural Analysis1

This paper examines the differences associated with the patterns and determinants of women's market employment by migration status and ethnic origin. Considering “ethnic employment” as an important issue in the immigrant labor market assimilation approach and migrants’ success in the labor market as a key indication of their settlement in the host country, the results of this paper provide a basis to reassess the patterns and determinants associated with the settlement of female migrants in the multiethnic and multicultural labor market of Australia as “a particularly interesting society in which to examine how immigrant women adapt to [a] new labour market” ( Evans, 1984 :1063).     

Transformations of employment and occupation patterns in Taiwan's transition to an information society

This study investigates the employment and occupation patterns that have emerged as Taiwan has evolved into an information society. The study shows that the unemployment problem that arose after Taiwan's transformation to an information society is closely related to the inability of information-intensive industries (particularly information-intensive manufacturing) to absorb the labor released from labor-intensive industries. Second, the changing trends in occupation structure under the transformation to an information economy have made Taiwan's labor market unbalanced, benefiting workers who are more highly skilled in information, are more professional, and have higher levels of education. This state of unbalance negatively affects inequality and bias in the labor market.     

村落共同体的当代命运:四个观察维度

去社会学化、去社会理论化的村庄研究忽略了以下四个问题:(1)在批判社会学的视野里,村庄面临市场力量的持续冲击,后者要求土地和劳动力全部从共同体中分离,纳入作为价格形成体系的市场。故村庄转型的核心问题就是听任市场力量,还是保留村落共同体。(2)在专业社会学的视野里,如果承认现代社会还需要小型、地方性共同体的存在,以满足非市场经济性质的互助与交换,并发挥情感和社会认知方面的功能,就意味着要承认村落共同体的农业经济支撑条件在现代可能松动剥离,但它作为社区共同体仍然是正常的现代社会的基本资源;它能否在空前复杂的推压力量下采取恰当的过海策略,实现与社会的联结,首先取决于国家和社会把何种社会视为正常。(3)在公共社会学的视野里,地方性共同体是否被视为公民社会的敌人,首先取决于公民社会被视为应基于方法论个人主义之上还是方法论社群主义之上。从后一立场看,恰当的村落共同体不是公民社会的敌人。(4)在政策社会学的视野里,国家应该在允许农村劳动力向城市转移的同时,积极发展乡村社区,并且在解决城乡社区的经济社会不平等问题的基础上发展城乡社区衔接,避免加快城市化与建设新农村两大国家战略之间出现断裂。     

Child labor: a forgotten focus for child welfare.

Child labor is driven by child and family impoverishment, market forces, and political apathy concerning the rights of the child. Although a fundamental concern of the early 20th century child welfare system, today child labor is often seen as outside the scope of child welfare and child protective services. Making child labor a focus of child advocacy activity once again could do much to better the lives of children.     

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.     

BUSINESS CYCLE FLUCTUATIONS WITH THE DIVISION OF PERMANENT AND TEMPORARY EMPLOYMENT

In the mainstream real business cycle (RBC) model, labor can be viewed as temporary employment since the firm's demand for labor behaves directly in response to stochastic productivity shocks in each period. This paper provides a tractable way of analyzing fluctuations in permanent and temporary employment over the business cycle, as well as the underlying driving forces. This inclusion of heterogeneity helps reconcile the RBC model with the U.S. data given that temporary employees in general only account for a small proportion of total private‐sector employment (about 2%–3%). We draw an explicit division between permanent and temporary employment and resort to this separation to account for stylized facts that characterize a two‐tier labor market. In particular, with regard to the U.S. labor market, our benchmark model can well explain the motivating facts: (1) temporary employment is much more volatile than permanent employment, (2) the share of temporary employment (the ratio of temporary to aggregate employment) exhibits strong pro‐cyclicality, (3) permanent employment lags by two quarters on average, and (4) the correlation between temporary employment and output is stronger than that involving the permanent counterpart. The quantitative analysis suggests that our proposed channels explain the main facts well and the model further provides plausible reasoning for a firm's labor hoarding. (JEL E24, E32)     

Spatial inequality of rural industrial development in China, 1989–1994

Rural industry, having benefited from market oriented reforms, has surpassed state owned industry and become the largest industrial sector in China since 1993. Using multiple indicators, this study reveals a highly unbalanced spatial distribution and an increase in inequality of rural industrial development. It also classifies the level of development at the provincial level from 1989 to 1994. The relationship between rural industrial development and internal and regional characteristics is analyzed by multiple regression analysis. A very high correlation between rural industrial development and regional market indicators resulted in the conclusion that rural industry is a market economic sector and its development is driven by market forces in China's dual economy. The spatial patterns of rural industrial development reflect the viable, even optimum, location patterns created by the experience of the market economy. Although government policies attempted to reduce the inequality of rural industrial development among regions, the widened gap between rich and poor in the period 1989–1994 demonstrated the strong impacts of the concentrating effects of market forces.     

Family Work Trends and Practices:1971 to 1991

Families are allocating their time in an increasingly market-oriented fashion, with a decreasing proportion of labor hours being devoted to unpaid work. This article analyzes two aspects of the changing allocation of time. First, using longitudinal data from 1971 to 1991, the nature of the changes in how the families have changed their allocation of time between market and non-market alternatives is examined. Next, how family types have changed their allocations over the same period are examined. The Panel Study of Income Dynamics is used for this analysis.Results of this research indicate that the proportion of time spent on household labor among men has increased over individual men's life cycles and between cross-sectional cohorts. However, women continue to devote more hours to household labor than men. The number of hours women spend in the labor force are increasing, but the number of hours women spend in the labor force is still less than the number of hours men spend in the labor force. While the families in the longitudinal analysis have been able to maintain fairly stable work and income patterns, the cross-sectional data indicate that families need to devote an increasing number of hours to the labor market to maintain economic stability.     

The Continuing Significance of Race in the Occupational Attainment of Whites and Blacks: A Segmented Labor Market Analysis*

In this article we posit that racial discrimination is not uniform across the U.S. labor market. While it is likely that patterns of racial discrimination occur in some types of jobs more than others, little empirical research has examined the effect of race across segmented labor markets. Incorporating two decades of comparable General Social Survey data, this article revisits William J. Wilson's hypothesis that the significance of race in determining labor market outcomes is declining. We examine the effect of race within two dissimilar labor segments over time, dividing the labor market into technique‐versus social‐skills‐oriented segments. Using this theoretically useful dichotomy, we examine if the net effect of race (African American and white men) on occupational prestige has declined from the 1970s to the 1990s. Our multivariate analysis shows that the net effect of race is different in each labor market. This suggests that racial discrimination against African Americans is not uniform across the entire labor market, but instead is differentiately manifested within various labor market segments. Overall, our findings partially support Wilson's thesis indicating that while the effect of race is no longer a significant indicator of occupational prestige by the 1990s in a technique‐oriented job segment, it remains a significant predictive variable within a social‐skills‐oriented job segment, even when controlling for a range of social class and structural variables.     

Vocational or academic track? Study and career plans among Swedish students living in rural areas

This ethnographic study explores how rural lower secondary school students reflect on study and career choices, focusing on the choice between vocational and academic upper secondary programs. Applying a spatial perspective, we analyze individual students’ reflections about study and career choices within a variety of rural regions, and compare patterns in the regions. The results indicate complex interactions between structural factors and individual dispositions. In places where education levels were low and the local labor market predominantly offered unskilled manual and service work, there was a stronger tendency to choose vocational programs than in places with higher education levels and access to a more varied labor market. Likewise, there was an association between strongly gendered labor markets and gender-typical choices. However, individual students positioned themselves actively in relation to the local place, its local labor market and social relations; their choices were place-bound to varying degrees, and chose upper secondary programs and presented ideas about prospective careers that were harmonious with the local labor market in some cases, but discordant in other cases. The results are discussed in the framework of individuals’ horizon for actions.     

Leaving your mamma: why so late in Italy?

In Italy, young adults tend to postpone their transition to adulthood and live with their parents until very late compared with other countries. A dynamic discrete choice model is proposed in which agents choose residential arrangements, together with labor supply and marital status, conditional on the economic and institutional framework and on other agents’ choices. The model is structurally estimated with the Simulated Method of Moments for non-student high-school graduate males and then used to assess, through a variety of counterfactual experiments, the relative importance of factors that are claimed to influence the choice to leave home in the existing literature: labor market conditions, parental resources, housing market conditions and social interaction. Results suggest that Italians choose to remain with their parents due to a combination of poor labor market conditions and high housing costs. The relatively high income of parents could contribute to the patterns observed by acting as an insurance against unemployment. Finally, estimates indicate that individuals tend to conform to a social norm, especially in the South of the country were family ties and the costs in terms of utility from not complying with expected behaviors appear to be stronger.

     

Migration to European Countries: A Structural Explanation of Patterns, 1980–20041

Various theoretical approaches have provided us with insights to explain the pattern of migration flows. Economic theory considers migration to be a reaction to labor market and economic incentives. Cultural theories predict that migration flows will occur according to a center‐periphery pattern, while social network analysis assumes that migrants follow already established migration networks. We test these three approaches simultaneously, using OECD and Eurostat data on the migrant inflow into the European countries between 1980 and 2004. The analysis demonstrates that migration flows react to economic incentives, mainly with regard to the labor market, but also to cultural and colonial linkages. There is no indication that the importance of the colonial past is declining over time. The response of migration patterns to shortages in the labor market is shown to be highly efficient, while the analysis shows that immigrants are not attracted by high levels of social expenditure.     

THE PHYSICIAN LABOR MARKET IN A MANAGED CARE-DOMINATED ENVIRONMENT

The belief that doctors respond to declining demand by treating patients more aggressively has created skepticism about relying on market forces to restructure physician supply. We argue that even if the physician labor market is dysfunctional under fee-for-service incentives, it can perform better as managed care becomes dominant. Our model implies a nonlinear effect of managed care penetration on incomes. Physicians can offset most or all of initial declines in demand, but cannot insulate themselves indefinitely. This may explain the observation that, until recently, the growth of managed care has not been accompanied by large physician income changes. ( JEL III, J31)     

Gender and Employment: A Global Lens on Feminist Analyses and Theorizing of Labor Markets

This review of feminist analyses and theorizing of labor markets uses a global lens to reveal the forces shaping gender inequality. The review focuses on the increasing dominance of services primarily in the liberal market economies of the United States and the United Kingdom along with examples from Asia where restructuring has shifted locations of work and affected new ways of working by a diverse and mobile workforce. Labor market restructuring through commodification of care, outsourcing of household tasks and informalization of employment affects the complexity of relationships between and the interconnectedness of social inequalities transnationally and in global cities. Place matters when analyzing how service employment alters divisions of labor and how these labor market changes are gendered. Global restructuring not only poses new challenges but also creates new opportunities for mobilization around a more robust notion of equality.     

Cultural constraints on rising income inequality: A U.S.–Japan comparison

Prior research has identified fundamental cultural and normative concepts—including wa, enryo, giri, and amae—that are typically argued to be integral to Japanese society. We advance this line of research by discussing how these traditional cultural concepts may influence labor market relations and thereby constrain the degree of income inequality in Japan relative to the U.S. Collectivist cultural attitudes are embedded in Japanese work organization, and are naturally inherited social constraints when compared to more unbridled labor market relations of the “New Economy” in the U.S. While studies of rising inequality in the U.S. and Europe consider how governmental policies impinge upon market forces in order to moderate labor market outcomes, our analysis suggests how culture may sometimes directly constrain income inequality without imposing legal regulations or instituting official programs.     

Korea's Strong Familism and Lowest-Low Fertility

Abstract:  The emergence of lowest-low fertility in southern and eastern Europe dramatically changed the relationship between fertility and its covariates. Today, low fertility countries are characterized by low female labor force participation, low gender equity, robust marriage institution, and strong familism. It is assumed that the discrepancy between an advanced socioeconomic system and robust family patterns is an important cause of lowest-low fertility. The Republic of Korea is a typical case where the conventional family pattern causes disharmony with socioeconomic development and depresses fertility. The direct cost of children has been rising rapidly because of the Confucian value of education and strong family ties. The tight labor market conditions and the increasing uncertainty about the future are depressing nuptiality as well as marital fertility. The robustness of traditional gender role division checks the improvement in compatibility between work and the family and sustains the high opportunity cost of childbearing. Although the Korean government announced an ambitious pronatal program in 2006, the budget is so limited that its effect is questionable. Furthermore, a large part of the difference between moderately low and lowest-low fertility is attributed to cultural patterns and is beyond family policy.     

Institutional Structure and Immigrant Integration: A Comparative Study of Immigrants' Labor Market Attainment in Canada and Israel1

The present study focuses on the incorporation of immigrants from the former Soviet Union in two receiving societies, Israel and Canada, during the first half of the 1990s. Both countries conducted national censuses in 1995 (Israel) and 1996 (Canada), making it possible to identify a large enough sample of immigrants and provide information on their demographic characteristics and their labor market activity. While both Canada and Israel are immigrant societies, their institutional contexts of immigrant reception differ considerably. Israel maintains no economic selection of the Jewish immigrants and provides substantial support for newcomers, who are viewed as a returning Diaspora. Canada employs multiple criteria for selecting immigrants, and the immigrants' social and economic incorporation is patterned primarily by market forces. The analysis first examines the characteristics of immigrants who arrived in the two countries and evaluates the extent of selectivity. Consistent with our hypotheses, Russian immigrants to Canada were more immediately suitable for the labor market, but experienced greater difficulty finding and maintaining employment. Nevertheless, immigrants to Canada attained higher‐status occupations and higher earnings than their compatriots in Israel did, although the Israeli labor market was more likely to reward their investments in education.     

ASSETS, SAVINGS AND LABOR SUPPLY

This paper examines the role of assets in labor supply functions. Although assets have frequently been used to measure the response of hours worked to non wage-related income, it is generally incorrect to include them in a labor supply equation. Using a simple life cycle model, working hours and assets are shown to be simultaneously determined by similar economic forces. Therefore, the correlation between them should not be accepted as evidence of a causal sequence from assets to market work. An empirical test of the life cycle implications for savings behavior is performed using data from the Survey of Economic Opportunity.     

SUBURBAN LABOR MARKETS, URBAN LABOR MARKETS, AND GENDER INEQUALITY IN EARNINGS

This study focuses on the role of labor market location in generating gender inequality in earnings. Specifically, the article examines whether suburban versus urban labor market conditions differentially affect gender-based earnings inequality. Tel Aviv metropolitan area labor force data support the thesis that women's tendency to settle for jobs in the vicinity of home is an exchange between economic opportunities and convenience, to avoid conflict with traditional roles. The cost of staying in the suburban labor market is greater for women than men, and suburban exceeds urban labor market gender-linked economic discrimination.