EMPLOYMENT DYNAMICS OF IMMIGRANTS VERSUS NATIVES: EVIDENCE FROM THE BOOM‐BUST PERIOD IN SPAIN, 2000–2011

This article studies whether the durations in unemployment and employment for immigrants and natives respond differently to changes in economic conditions and to the receipt of unemployment benefits. Using Spanish administrative data for the period 2000–2011, we estimate multi‐spell duration models that disentangle unobserved heterogeneity from true duration dependence. Our findings suggest that immigrants are more sensitive to changes in economic conditions both in terms of unemployment and employment hazards. The effect of the business cycle is not constant but decreases with duration at a higher rate among immigrants. We provide evidence that the higher job separation rates and lower capital‐labor complementarity of immigrants are mechanisms that are possibly compatible with these results. We also find evidence of a disincentive effect of unemployment benefits on unemployment duration, which is stronger for immigrants, but only at the beginning of the unemployment spell, especially under good economic conditions. Finally, unemployment benefits increase job match quality only for native workers with temporary contracts. (JEL J64, J61, C23, C41, J65)     

The economic safety net for low-income families with children

Following the passage of welfare reform in the mid-1990s and the end of entitlement benefits under Temporary Assistance for Needy Families, the U.S. economic safety net has become increasingly individualized. In fact, it is no longer clear whether low-income families tend to rely on particular types of public benefits, or whether there are characteristics that differentiate benefit “packaging”.This study examines the combinations of various income sources comprising economic safety nets for low-income families participating in the Fragile Families and Child Wellbeing Study. The income sources we explore include earnings, child support, Temporary Assistance for Needy Families (TANF), Supplemental Nutritional Assistance Program (SNAP) benefits, childcare subsidies, unemployment insurance (UI) benefits, Supplemental Security Income (SSI), the Earned Income Tax Credit (EITC), housing subsidies, and Medicaid. We use cluster analysis to determine the most common patterns of income and benefit sources, and identify four distinct clusters of income and benefits that are associated with different family demographic characteristics. The findings from this investigation may be useful to social service programs as they attempt to identify relevant safety net resources for economically struggling families, and to policymakers attempting to reconcile requirements associated with programs and benefits that are regularly combined by beneficiaries.     

The Effect of Unemployment Insurance on Temporary Help Services Employment

A model with fixed effects and controls for state-specific linear time trends is developed to analyze the influence of state unemployment insurance taxes on temporary help services employment using state level panel data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. Prior research has shown that imperfect experience rating of unemployment insurance taxes increases temporary layoffs and that, conversely, more extensive experience rating leads to a decrease in temporary layoffs. The current analysis demonstrates that more extensive experience rating increases temporary help services agency-intermediated temporary employment. To the extent that the increase in temporary help services employment represents a substitution of temporary help services jobs for traditional direct hire jobs, it implies a negative effect on job quality. Steps to address low unemployment insurance recipiency rates by temporary help services workers may alleviate the impact of unemployment insurance tax structures on temporary help services employment.     

The Receipt of Transfer Payments by Immigrants in Sweden

Using the native-born as a benchmark, this article examines the reliance of immigrants on Sweden's social safety net. Both in the raw data, and after conditioning on a number of explanatory variables, we find that there are differences between immigrants and natives regarding participation in the Swedish income security system. We also find that there are differences in this respect between immigrants from different regions as well as between more recent and earlier cohorts of immigrants. As regards unemployment insurance benefits and cash labour market assistance, no clear pattern can be discerned in the results. In the case of early retirement pension and social assistance, however, the picture looks different. Immigrants arriving at an early date from typical labour immigration regions are over-represented in early retirement. Immigrants, especially non-European immigrants with a recent date of arrival, are over-represented among recipients of social assistance. The overall conclusion is that the immigrants' total rate of participation in the income security system is determined by their rate of unemployment and their state of health. On the other hand, the distribution of their participation among the different components of the income security system is highly dependent on their length of residence in Sweden and where they come from.     

Patterns and correlates of involuntary unemployment and underemployment in single-mother families

Economic downturns, trends in the increased number of single-mother families and women entering the workforce, recent welfare reforms that make receipt of cash benefits contingent on employment, and changes in the economic environment that have increased employment problems, all highlight the importance of examining unemployment and underemployment particularly among single-mother families. The current study used the 2004 panel of the Survey of Income and Program Participation (SIPP) to examine patterns and correlates of unemployment and underemployment among single-mother families. The results indicate fairly substantial employment problems. Although approximately one-half (55.6%) of the single mothers had adequate employment, 30% experienced unemployment or involuntary job gaps, and approximately 15% experienced underemployment. Results further indicate that age, education level, past work experience, and homeownership are related to a reduced risk of employment problems. On the other hand, work disability, other family income, receipt of cash benefits, and state unemployment rates place single mothers at an increased risk of unemployment and underemployment. The findings suggest social policy implications and targeted assistance for those at-risk single mothers trying to secure adequate employment.     

INVOLUNTARY, EMPLOYMENT IN CONTRACTS WITH RISKY JOB SEARCH

The implication of partially insurable job search risk for incentive compatibility in a standard contracting framework are explored. When unemployment spells provoke job search, workers face risk in spell duration and reemployment wages. When search effort is not variable, contracts including unemployment insurance will yield involuntary employment. When search effort is diminished by UI benefits, firms shift some compensation back to wages, increasing the relative attractiveness of employment. The analysis begins with a theorem on incomplete insurance by Imai, Geanakoplos and Ito [1981] for which a simple proof and economic intuition are provided.     

Les transformations de l'intégration par l'emploi: Regards croisés : France métropolitaine - île de La Réunion

Against a background of mass unemployment and the increasing precariousness of employment, the current changes in the labour market demand that we examine the previously central role of paid employment in social integration. If the individual now deprived of employment or having a temporary contract is by dint of this fact less included in society or is less secure by not having a permanent salary, is it to say that he embodies the face of the de-affiliated, of those who miss out on social benefits? Taking the example of the Reunion Island which has the highest level of unemployment and population covered by the minimum income (RMI: Revenu Minimum d'Insertion) in the country, this article endeavours to explain and understand how, in the context of a protective society and increasingly flexible employment market, new methods of social integration without and resulting from paid employment are being formed.     

The effect of education on unemployment duration

Exploiting the variation in education induced by a reform that compelled individuals to obtain additional schooling in Turkey, and using administrative unemployment insurance (UI) records, we show that high-educated unemployed workers, compared to their low-educated counterparts, use unemployment benefits longer, and they are less likely to find employment before their benefit periods expire. This suggests education increases one's selectiveness over jobs. We also show benefit generosity impacts the high- versus low-educated differentially. Extended benefits increase low-educated workers' probability of finding employment more than the high-educated. Our findings highlight the importance of considering worker attributes when designing the UI system.     

Creating employment or keeping them busy? An evaluation of training programs for older workers in Germany

The authors analyze the effect of participation in short-term training measures on older German recipients of means-tested unemployment benefits. Their analysis uses administrative data of the German Federal Employment Agency, and they estimate the effects of participating in two types of short-term training--classroom and in-firm training--on different outcomes of the participants. Results show that classroom training is not effective in making participants independent of benefit receipt. It has a moderately positive effect on employment outcomes, which are highest for West German men. In contrast, in-firm training significantly raises the participants' likelihood of finding regular jobs and of being independent of unemployment benefit receipt.     

The unemployment of women with physical disabilities in Ghana: issues and recommendations

Unemployment among persons with disabilities is high. The situation is worse for women with disabilities as they experience multiple disadvantages on account of gender and disability. The condition for women with disabilities in Ghana could be more complicated, given the intersection of disability, gender, poverty, cultural beliefs and practices. As employment provides not only income for women with disabilities but opportunities for social participation and increases psychological well-being as well as self-esteem, it is imperative to remove barriers that hinder their employment. The current study examines issues associted with the unemployment of women with physical disabilities in Tamale, Ghana, and makes recommendations to policy-makers and practitioners in order to improve the condition of persons with disabilities in general, and particularly women with disabilities.     

Difficulties in Shifting from Individualistic to Socio-political Policy Regarding Disability in Canada

An individualistic conception of disability has been replaced by a socio-political definition. The socio-political model implies that disability stems from the failure of the social environment to adjust to the needs of people with disabilities rather than from the inability of disabled individuals to adapt to societal demands. This paper will examine the extent to which Canadian policies have changed to embrace this new definition. There has been some progress in policies related to shelter, transportation and recreation. However, policies related to income and employment are still individualistic in nature because policy change in these areas requires a major shift in governmental approach to unemployment and fundamental reform of the Social Assistance system. In a period of high unemployment, people with disabilities are viewed as surplus labour, and the Canadian government has found that high unemployment is politically tolerable. Obstacles to an increase in income support include a strong work ethic, the philosophy that social assistance benefits should be less than could be earned in the work-force, and the private insurance and litigation industries which benefit from the current income system. Other barriers to change are the lack of power of disabled groups and the dominance of professionals.     

Who benefits from labor market institutions? Evidence from surveys of life satisfaction

This paper investigates the welfare effects of labor market institutions, placing an emphasis on how the institutions’ effects are differentiated by socio-demographic subgroups. We study how life satisfaction is affected by employment protection and the level and duration of unemployment benefit payments. Using data for almost 370,000 individuals in ten European countries, 1975-2002, we find that more employment protection and a higher benefit replacement rate increase the life satisfaction of the average citizen. At the subgroup level, different segments of the population are affected differently by the two categories of labor market institutions. While employment protection is valued especially by employed persons of intermediate age, it is less beneficial for women/housewives and for older persons. More generous unemployment insurance is valued especially by these latter subgroups and by the unemployed.     

Competing for seafaring labour: Social security and agency employment in Chinese shipping

This paper discusses one strategy that Chinese crewing agencies adopt to compete with each other in the global seafarer labour supplying market. This strategy is related to Chinese seafarers’ social insurance participation. It shows that crewing agencies utilised a dual workforce – ‘company-owned seafarers’ and ‘externally hired seafarers’. Externally hired seafarers, though in precarious employment, are offered higher salaries in place of social insurance coverage. By contrast, company-owned seafarers are paid less, though enjoy social insurance arranged by agencies. This strategy serves to segment the seafarer labour market, conceal the level playing field and help agencies recruit seafarers cost-effectively, though in violation of labour rights. This paper argues that this strategy grows out of the competitive landscape co-shaped by the national regulatory and institutional settings and the global structure of the shipping industry.     

From Work to Welfare: Institutional Arrangements Shaping Turkish Marriage Migrants’ Gendered Trajectories into a New Society

Using a mixed methods approach, this article examines gendered patterns of employment and of unemployment benefit uptake among Turkish marriage migrants in Denmark. The results show that men use co‐ethnic networks to access entry positions. Subsequent eligibility for unemployment benefits enable these men to search for better jobs. Women enter employment more slowly and tell of such entry being related to entering the unemployment insurance system, enabling them to periodically conform to gendered expectations as homemakers. Pakistani marriage migrants display similar patterns, indicating the centrality of this institutional arrangement in low‐skilled marriage migrants’ active adaptation to a new society.     

Household job search: A theoretical and empirical model

This article links the literature on family decision making and the economics of job search by examining job search by an unemployed individual within a household context. A theoretical model was developed which demonstrates the interdependence of the utility of household members when one is searching for work. The costs of search are borne by all household members while the benefits are captured in the searcher's expected future wage. A reservation wage was shown to be determined by household financing options, and the perception of relevant labor market parameters. An empirical model of the reservation wage for a sample of unemployment insurance recipients was estimated using two-stage least squares. Results, reported for male and female subgroups, support the hypotheses derived from the household job search model. In particular, the reservation wage was shown to depend on unemployment duration, labor market conditions, increased labor force participation of other household members, use of household assets to finance search, existence of dependents, and unemployment insurance benefits.     

From service to social control: Implications of welfare reform for professional practice in the United States

In response to the explosive growth and the changing demographic composition of public welfare recipients, this program has undergone four major reforms over the last three decades: the 1962 'Service' amendments, the 1967 Work Incentive program (WIN), the Family Support Act of 1988, and the 1996 program of Temporary Assistance to Needy Families (TANF). These reforms have had a profound impact not only on the scope and purpose of public assistance to needy families, but also on the nature of professional social work practice in this area of public social service. An analysis of the major welfare reforms over the last 35 years reveals how the national entitlement to income maintenance and social services has receded, local responsibility and private delivery of service have increased, and emphases on service functions have shifted from rehabilitative social casework/counselling to work-oriented training, job search activities, and local employment. The provision of public assistance has been transformed from a federal entitlement based on needs to a budget-driven-time-limited benefit enveloped by incentives and sanctions, with welfare clients increasingly subject to mandatory participation in work-related activities. This movement from welfare to workfare has infused the professional role of social workers with a steadily expanding function of social control, which is unlikely to encourage professional participation in the public social services.     

Future of Long-Term Care Financing for the Elderly in Korea

ABSTRACT

With rapid aging, change in family structure, and the increase in the labor participation of women, the demand for long-term care has been increasing in Korea. Inappropriate utilization of medical care by the elderly in health care institutions, such as social admissions, also puts a financial burden on the health insurance system. The widening gap between the need for long-term care and the capacity of welfare programs to fulfill that need, along with a rather new national pension scheme and the limited economic capacity of the elderly, calls for a new public financing mechanism to provide protection for a broader range of old people from the costs of long-term care. Many important decisions are yet to be made, although Korea is likely to introduce social insurance for long-term care rather than tax-based financing, following the tradition of social health insurance. Whether it should cover only the elderly long-term care or all types of long-term care including disability of all age groups will have a critical impact on social solidarity and the financial sustainability of the new long-term care insurance. Generosity of benefits or the level of out-of-pocket payment, the role of cash benefits, and the relation with health insurance scheme all should be taken into account in the design of a new financing scheme. Lack of care personnel and facilities is also a barrier to the implementation of public long-term care financing in Korea, and the implementation strategy needs to be carved out carefully.     

The Effects of Being Out of the Labor Market on Subsequent Wages: Evidence for Uruguay

Based on administrative data combining workers’ earnings histories and unemployment insurance benefits, we document short and long term wage losses for a large sample of Uruguayan formal workers with high tenure. The contribution of this paper is to provide original evidence about job separation costs in a developing country, based on a unique array of social security and unemployment insurance administrative micro-data. Our main findings indicate that workers lose around 38 % of their previous wages in the first quarter after separation, and 1 year after, losses are still more than 14 %. If we consider earnings plus unemployment insurance benefits, losses at the quarter of separation are considerable lower, amounting 22 % of previous wages. We also provide original evidence about how wage losses vary across age groups, gender, industry and size of the firm. Differences between switchers and non switchers, as well as the effects of the economic cycle are also analyzed.     

Working,yet not working: Assessing labour underutilization in India

Labour market responses to past business downturns across countries have been ambiguous and paradoxical, including both pro- and counter-cyclical reactions. In the absence of adequate social safety nets, including unemployment insurance, counter-cyclical employment rates could signal distress rather than productive employment opportunities. Juxtaposing household employment- unemployment data with the recommendations of the 19th International Conference of Labour Statisticians on labour underutilization, this article critiques existing data on underemployment in India and calls for the review of data collection methods to better inform labour market policies.