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.     

The effect of unemployment on children and adolescents

Unemployment is a stressful life event that affects not only the job loser, but also impacts the person's social network. This network includes family members. However, most of the research on unemployment has focused on the effect of job loss on the former worker. This paper reviews this limited literature in order to identify what the potential impact of unemployment is on children. The reason for doing so is to add to the knowledge base that has demonstrated that economic policy decisions have a substantive effect on many aspects of societal health and wellbeing. Information on what these effects are in regard to children and families might serve to inform decision makers in developing appropriate social policy. This information is also an aid that would help professionals in the planning and delivering of needed services.     

The effect of immigration on the earnings of native-born workers: Evidence from Australia

No consensus has been reached by previous studies on the impact of immigration on the earnings of natives. Using data from the Australia's 2001 Census of Population and Housing an individual-level earnings function is estimated by including the fraction of immigrants in a given skill group relative to total employment in that skill group as one of the independent variables. Using employees’ occupation and level of education as proxies for skill, the results indicate that generally immigrants have a significant positive effect on earnings of natives. The overall findings suggest that the increase in supply of labour due to immigration is offset by higher demand for labour and hence positive effect on native earnings.     

Measuring the effect of matching problems on unemployment

This article shows how matching problems reduce employment figures – and hence also raise those for unemployment – by creating a gap between labour demand and employment. It also shows how this gap can be measured by unfilled jobs (unmet demand) as distinct from job vacancies (recruitment processes) and reports results from the Swedish vacancy survey which measures both. In fact, while a shift of the matching function indicating longer recruitment times suggests increasing matching problems, this can only be verified by measuring unfilled jobs, which also quantifies the effect on unemployment.     

The scars of youth: Effects of early‐career unemployment on future unemployment experience

Does early‐career unemployment cause future unemployment? The authors approach this question using German administrative matched employer–employee data that track almost 700,000 individuals over 24 years. Instrumenting early‐career unemployment with firm‐specific labour demand shocks, they find significant and long‐lasting “scarring effects”. In the mean, each additional day of unemployment during the first eight years on the labour market increases unemployment in the following 16 years by half a day. However, quantile regressions show that the scarring effects are much stronger for individuals who already suffer from lengthy and repeated spells of unemployment.     

Tax-funded unionism: The unemployment connection

Labor unions are widely regarded as private organizations which finance their activities exclusively through revenues collected from members and others who are covered by collective bargaining agreements. In reality, however, U.S. unions receive millions of dollars each year through grants and contracts from federal, state, and local governments for a variety of purposes, including aid to the unemployed; these funds are used (sometimes illegally) to finance union operations, including political activities. This article briefly explores the phenomenon of tax-funded unionism.     

Estimating the immigration multiplier: an analysis of recent Korean and Filipino immigration to the United States

"This article explores the effect of 'chaining' through the petitioning of relatives on the demand for future immigrant visas [to the United States]. The data for the study come from a 1986 survey of 3,911 respondents from the Philippines and the Republic of Korea who were interviewed in Manila and Seoul just after they had received their U.S. immigrant visas. Analyses are conducted to derive different types of multipliers that may be used in estimating the effects of chain migration.... The empirical results for the Philippines and Korea indicate that the potential for future immigration through the family reunification entitlements of the immigration law is lower than has previously been suggested." This is a revised version of a paper originally presented at the 1987 Annual Meeting of the Population Association of America (see Population Index, Vol. 53, No. 3, Fall 1987, p. 385).     

The measurement of unemployment using completed durations: evidence on the gender gap in unemployment in France

This paper examines how unemployment can be measured in a normative fashion - taking into account the mean and inequality of spell lengths - and how the extent of unemployment can be estimated from cross section data of the type found in labour force surveys. The issue is not straightforward since in these surveys completed durations of unemployed individuals are not observed yet they constitute the basis for calculating the kind of index that has been proposed to measure the extent of unemployment in a way that goes beyond the unemployment rate. The index proposed by Shorrocks has robust normative foundations and has an equivalent representation in terms of average complete duration and the density of completed durations. Building upon earlier work applied in the United States for estimating the average completed duration, we present a method that enables the index to be calculated based on an estimate of the density of completed durations. The approach is illustrated in the context of comparing male-female unemployment differences in France, where historically female unemployment has been higher than that of males.     

The law,immigration and human rights: changing the Australian immigration control system

This paper examines the structure of the present system of immigration control in Australia in the context of its origin, evolution, and responses to current human rights and anti-discrimination standards. The system has serious shortcomings because it confers broad discredionary powers on immigration officals and provides no comprehensive system of judical review. Since the 1970s the system has been gradually losing its legitimacy and has become a subject of challenges by various groups; its efficiency has been undermined and it breeds social conflict and systematic human rights violations. The 1958 Migration Act contains a level of discretion unknown in other "machinery" legislation, conferring a wide range of discretionay power on 1) the minister, 2) authorized officers, 3) officers, and 4) prescribed authorities. The current review system, in response to political pressure and in the context of administrative law reforms, provides for limited access to judicial review under the Administrative Decisions Act of 1977. The ethnic gains of the 1970s were achieved when Australian society was going through a period of profound liberal changes. The 1980s have brought continuing high unemployment and high inflation rates, a large budget deficit and associated restraints in government expenditure, as well as a substantial cut in the immigrant intake after the Labor Victory of March, 1983. Overall, an entirely new immigration control system should be developed that will aim at providing a better balance between stability, predictability, and fairness of the system on the one hand, and the need for government to maintain its ability to adapt its program to fluctuations in economic and social conditions both within and outside Australia on the other hand.     

The effect of unemployment duration on national suicide rates: a time series analysis, 1948-1982

The relationship between unemployment and suicide in the United States is examined. Data for the period 1948 to 1978, primarily from the U.S. Public Health Service, are used to examine the effect of the duration of unemployment on suicide. "The results of a Cochrane-Orcutt iterative regression analysis indicate that the greater the duration of unemployment the greater the suicide rate. Using ex post forecasting techniques it is estimated that increases in unemployment during the Reagan administration have been associated with at least 929 additional deaths from suicide."     

Race differences in the effect of unemployment on marital instability: A socioeconomic analysis

In 1965, Daniel Moynihan asserted that unemployment, in general, and its interaction with the matriarchal structure of black families was a major cause of the “crumbling‘ of the Negro family. Moynihan did not address the relation of unemployment and marital instability in white families. This study examines the relationship between unemployment and marital instability in black and white families over the period 1970–1978. The theoretical framework emphasizes that the effects of unemployment on the family cannot be understood in purely utilitarian terms i.e. lost income. A socioeconomic model that incorporates both the social-psychological and psychological responses to unemployment is developed and the parameters estimated using Event History Analysis on a sample from the Panel Study of Income Dynamics for the years 1967–1979. Moynihan's main assertion that unemployment destabilizes families—both black and white—is confirmed. Also confirmed is Moynihan's assertion that families with a patriarchal head are less likely to experience marital instability. The results contradict some of the other predictions of the Moynihan hypothesis. First, black families are at less risk of marital instability at moderate levels of unemployment than are white families. Second, although black families appear to be more vulnerable than white families to chronic unemployment, the difference disappears when black males have only average scores on internal locus of control. When black males have above average scores on internal locus of control the risk of marital instability in the face of chronic unemployment is negligible. Third, while stabilizing for families where males who do not experience unemployment, patriarchal values prove quite destabilizing when the male head experiences unemployment. Indeed, the families facing the greatest risk of instability due to unemployment were white families headed by a man who had partriarchal attitudes. Fourthly, this study produced no evidence that black women are. behaviorally, more matriarchal than white women. Finally, this research indicates that the financial problems caused by unemployment appear to be a minor factor in martial dissolution. It appears that socioeconomic, that is, normative and affective factors, rather than utilitarian factors, are critical is shaping a family's reaction to unemployment.     

The politics of immigration reform

The US is the target for international migration, now more than ever. Population growth and economic stragnation in the Third World are increasing the pressures for out-migration, and current immigration law is wholly incapable of responding to the ever increasing flow of illegal immigrants. Border apprehensions of illegal aliens in the US were up 40% during 1983, and total apprehensions reached 1.25 million by the year's end. Recent public opinion polls have disclosed that an overwhelming majority of the American public demands immigration reform, and yet we as a nation have been distinctly unwilling or unable to respond to this clear public sentiment. This paper discusses the politics of the "Simpson-Mazzoli" Immigration Reform and Control Act, previous immigration legislation, current counterproposals for US immigration policy, and the political realities of immigration reform.     

The ecological effect of unemployment on the incidence of very low birthweight in Norway and Sweden

Little attention has been paid to the ecological effects of unemployment, despite strong theory suggesting that being socially or economically connected to unemployed persons can induce illness. Theory suggests, for example, that the labor market experience of adult males should affect maternal and infant health. We advance this line of inquiry by testing the hypothesis that quarterly increases in unemployment among Norwegian and Swedish males were associated with increased incidence of very low weight births from 1973 through 1995. Results support the hypothesis. We estimate that approximately 188 very low weight births could have been averted in Norway, and about 329 in Sweden, if quarterly increases in male unemployment had been constrained to the median over the 23-year period. Our findings imply that the social cost of unemployment may be underestimated by focusing on unemployment as an individual risk factor.     

The impact of unemployment on marriage and divorce

"The present study was designed to explore whether unemployment has a deleterious impact on family life, resulting in lower rates of marriage and births and higher rates of divorce. Time series data were available for twelve nations for the 35 year period of 1950 to 1985, and the present paper reports analyses of these data sets." The results indicate that unemployment is associated with lower marriage and birth rates and higher divorce rates.