Labour in global production networks: workers in the qualifying industrial zones (QIZs) of Egypt and Jordan

The role of labour in global production networks (GPNs) requires further theoretical and empirical research. Through the case of the qualifying industrial zones (QIZs) in Egypt and Jordan, I look at how different production and labour control regimes have emerged in the two countries to exploit preferential access to the US market. I analyse how the requirements of US buyers necessitate the building of a flexible, low‐cost, geographically mobile production and labour‐control regime that can meet the needs of buyers in terms of cost, time to market, fluctuations in demand and shifts in sourcing policy. Migrant labour from Asia and the formation of an associated dormitory labour regime facilitated the establishment of such a regime in Jordan. The social embeddedness of workers in Egypt, by contrast, hindered this process.     

THE IMPORTANCE OF TRADE COSTS IN DEVIATIONS FROM THE LAW‐OF‐ONE‐PRICE: ESTIMATES BASED ON THE DIRECTION OF TRADE

The full impact of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product‐specific prices, cross‐sectional productivity indices, and bilateral trade flows, allowing us to identify the probable source of any one product. We show that trade costs in the form of transportation and distribution costs are important in determining international price differences and segmenting international markets. Physical distance relative to the origin has a precisely estimated positive impact on international deviations from the Law‐of‐One‐Price that is larger than estimates that do not account for the origin of each product. Based on our benchmark estimates, the price elasticity of distance was around 10% in 1990. (JEL F4)     

Migration Movements from and into Poland in the Light of East‐West European Migration

This article investigates migratory movements from and into Poland before and after the collapse of communism. The character and scale of these movements are of considerable significance, not only for politicians and societies in the CEE region, but also for European integration. The Polish eastern border is likely to remain one of the few places in Europe where it will be possible to control mobility on the East‐West axis. One cannot discuss East‐West mobility without discussing the emigration of Poles. Because recent immigration into Poland from the East should also be assessed from the perspective of both Poland and the West, the article examines emigration trends from Poland and immigration into Poland as well as the demographic characteristics of migrants. Only official statistical data are considered. Migration pressure from the East induced by the collapse of the system, combined with the restricted migration policy of Western Europe towards former USSR countries, were conducive to the formation of the Central European buffer zone. Poland is probably the best example of a buffer zone country. From the Western perspective it is also the most important country because the future of East‐West migration depends on the extension of the visa regime by Poland. Irrespective of the introduction of new hurdles, there will be other ways of channelling the movement from the East via Poland to the West. Globalization of migration will inevitably increase flows from the East. It is argued that the key to future European migration lies also in the West, more specifically in the employment needs of western labour markets.     

Foreign trade barriers and jobs in global supply chains

This article uses ILO global supply chain job estimates to study the impact on domestic jobs of foreign barriers to trade in goods and services. Empirical analysis largely confirms predictions derived from a theoretical model calibrated to WIOD data for 2000 and 2011. Barriers to trade in manufacturing and services are both found to have a cross‐border impact on jobs in their own sector and spill‐over effects in other sectors, the latter becoming stronger over time. This article shows the labour market consequences of the increased interconnectedness of countries and sectors through global supply chains, which suggests that trade policy can have significant external effects on foreign labour markets.     

Introduction to the special theme: theorizing transnational labour markets

In this introduction to the special themed section, ‘Theorizing transnational labour markets: economic‐sociological approaches’, I introduce the reader to the topic and give an overview of the four contributions. The terms ‘global labour market’ and ‘transnational labour market’ are broadly used to account for contemporary social phenomena as diverse as the ever‐closer integration of China or India, with their huge labour forces, into the world economy, the off‐shoring of specific operations of MNCs to countries with cheap labour, or cross‐border labour migration. In most of these cases, the existence of global or transnational labour markets is taken for granted by the media, consulting agencies and other economic actors. However, scholars in labour market research and cross‐border migration alike have largely ignored the categories of global or transnational labour markets. Thus far, it remains unclear what these terms really mean and how we should address them theoretically. The aim of this themed section, therefore, is to view cross‐border labour migration through an economic‐sociological lens and thus bring into dialogue migration and labour market scholarship. By introducing a transnational perspective into labour market research, we hope to make a useful contribution towards theorizing on cross‐border labour markets and thereby overcome the methodological nationalism that seems to have crept into this area of scholarship.     

Ariadne’s thread: Cape Verdean women in transnational webs

This article is about Cape Verdean women who make a living through engaging in regular transnational petty trade. They buy consumer goods in West African countries, in Portugal and elsewhere in Europe, in Brazil and in the USA, to sell back in Cape Verde, either in open‐air markets or in their own shops. Women perform most of this kind of trade and they operate on the border between the formal and informal economies. Drawing on interview material, the article shows how their self‐presentation as autonomous self‐reliant economic agents relates to gender and family roles and to a strategic balance between personal freedom and embeddedness in multi‐territorialized networks.     

Trade union pedagogy and cross‐border action

In this article, we examine the potential of global union pedagogy to address the structural and political challenges of cross‐border trade‐union action. We do so by proposing an analytical framework that draws on labour relations, political sociology and education to explain educational processes and outcomes as responses to the pitfalls of global labour campaigns and the inadequacy of global and local labour institutions. We proceed to assess the value of our framework by elaborating on its different dimensions – framing, synthesizing, connecting and regenerating – in relation to the educational work of a global union federation, namely the International Transport Workers' Federation. We find that an actor‐centred approach that combines top–down, bottom–up as and horizontal processes of collecting knowledge from different contexts and making links between different countries, industries and parts of supply chains can help actors realize that their seemingly diverse concerns are essentially different manifestations of the same problem.     

Cross‐border,cross‐ethnic,and transnational networks of a trapped minority: Israeli Arab citizens in Tel Aviv‐Jaffa

In this article, I provide a framework for studying the transnational networks of minority members as a political phenomenon. I make two claims. First, it is necessary to take into account the state and its capacity to limit transnational networks if one is to capture, analytically, the full range of such networks. Second, it is important to extend the theoretical framework of transnationalism to include populations other than migrants and to account for networks established by national minority members whose loyalty to the state can be challanged. I offer a typology of networks organized along two major axes – the state in‐border–cross‐border axis and the ethnic or religious identity axis. These two axes yield different types of in‐border and cross‐border, intranational and transnational networks. I base these claims on an analysis of four case studies of cross‐border and cross‐ethnic networks maintained by Israeli Palestinian citizens in Tel Aviv‐Jaffa.     

The social order of transnational migration markets

The ‘infrastructural turn’ in labour migration studies has shifted attention away from the experiences of migrants to the role of public authorities and private actors in facilitating migrant mobilities. As part of a broader turn towards studying transnational mobilities rather than immigration and settlement, this research shows that the formalization of transnational labour migration has made mobility both freer and more difficult. In this article, I reinterpret mobility infrastructures from a market sociological perspective. Transnational labour migration, I argue, is more clearly conceptualized as the organized ‘making’ of cross‐border labour markets. Moreover, from a market sociological perspective the construction of cross‐border labour exchanges is at the same time a question of how the uncertainties inherent in market exchanges are coordinated by market actors. In its focus on how exchanges across borders are possible at all, a market sociological perspective makes note of the conflicting interests, power imbalances and uncertainties that must be handled for a social order of transnational migration markets to emerge. An important question concerns whether alternatives to the less regulated neo‐liberal market order that is evident in most migration corridors are possible and under what conditions. With reference to the challenges facing the regulation of cross‐border labour markets, in my conclusion, I map an agenda for future research.     

Flexicurity: A New Paradigm for the Analysis of Labor Markets and Policies Challenging the Trade‐Off Between Flexibility and Security

The aim of the article is to discuss the concept of flexicurity presented as a new paradigm for analyzing modern labor markets (analytical perspective) and as a metaphor for policies striving for a better balance between flexibility and security (normative perspective). The purpose is to clarify these analytical and normative meanings of the flexicurity concept from a theoretical and empirical perspective. Flexicurity has been a policy strategy since 2005/2006 endorsed by the European Commission and put on top of the political agenda for the European Employment Strategy and EU 2020, the 10‐year strategy of the EU. We briefly sketch the tenets of the flexicurity approach by discussing the main issues in the European academic and policy debate. We subsequently present empirical evidence based on the definition of dynamic outcome indicators for assessing the performance of 26 countries in the EU in balancing flexibility and security. The findings challenge the conventionally presumed trade‐off between flexibility and security.     

Migration and Policies in the European Union: Highly Skilled Mobility,Free Movement of Labour and Recognition of Diplomas

This article evaluates the relationship between highly skilled mobility (especially by individuals with university‐level degrees) and migration policies. Data from the European Union (EU) and Portugal (in particular) provide the empirical basis of the research. EU policies regarding the free circulation of individuals which aim to build the “common market” for economic factors (including labour) are reviewed, as are the more specific recognition of diplomas policies for professional and academic purposes, and recent levels of international mobility in both the EU and Portugal. The article also enumerates the main obstacles that, from a political and legal or social and cultural perspective, explain the low mobility revealed by those figures. Obstacles include the broad denial of citizenship rights; the necessity of assuring a means of sustenance; linguistic and technical exigencies for diploma recognition; the social attributes of work (more explicit in the service sector); and the institutional nature of national skilled labour markets. The main exception to the low mobility rule – movements of cadres in the internal labour markets of transnational corporations – together with flows in other multinational organizations, are also reviewed. In these, migrations are relatively exempt from political constraints and, significantly, avoid the recognition procedures adopted by the EU. In other words, it seems that the entry of highly skilled individuals in a transnational corporation, and not their citizenship in a Europe without frontiers, is what enables them to achieve effective mobility.     

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.     

New trade formations: precarity,pragmatic cosmopolitanism and long‐distance trade in the Caucasus

For many ordinary people responding to ongoing post‐Soviet precarity, domestic and transnational trade has become a common choice of livelihood. This article is about the small and medium sized traders who deal in cheap Chinese commodities in the Caucasus –particularly in Georgia and Armenia. It introduces the notion of ‘trade formations’ to account for the multiple ways in which cross‐cultural trade and microfinance practices, as well as stereotypes about national and regional groups and trading minorities, highlight the role of trust, reputation and everyday diplomacy in long‐distance commercial networks. While current trade networks are rooted in the cultures of trade practised under the Soviets, dispositions of pragmatic cosmopolitanism and defensive nationalism often determine who may or may not respond to post‐Soviet precarity by turning to transnational trade, embracing political and religious diversity, and overlooking hostilities, past and present.     

INTERNATIONAL DEAL EXPERIENCE AND CROSS‐BORDER ACQUISITIONS

I show that corporate directors' human capital facilitates international investments. Directors' experience with cross‐border transactions positively influences firms' decisions to conduct their first cross‐border acquisitions. Cross‐border acquirers are more likely to buy firms headquartered in countries with which the directors have prior deal experience. This effect is strongest for target firms headquartered in culturally and institutionally dissimilar countries. Announced cross‐border acquisitions are received more favorably by financial markets and are more likely to be completed successfully when the announcing firm has a director with cross‐border acquisition experience. These effects are not driven by investment bank involvement in the deal process or by other forms of directors' human capital, and they are robust to endogeneity of director hires. (JEL F23, F21, J24, L23)     

Informality and Contributory and Non‐Contributory Programmes. Recent Reforms of the Social‐Protection System in Uruguay

Several countries in Latin America are expanding their social‐protection systems. There is an on‐going debate about the trade‐offs implied by these expansions, and by the resulting interactions between contributory and non‐contributory programmes with informality in the labour market. This article analyses the potential incentive effects for formal and informal employment from a set of social‐protection reforms implemented in Uruguay in the 1990s and 2000s. It presents empirical evidence of the expansion of health insurance to formal workers' dependants, and finds that this reform significantly increased formal employment. Finally, it discusses possible alternatives to extend social‐protection systems while maintaining incentives for formal work in Latin America's labour markets.     

Language Policy in Practice: Re‐bordering the Nation

We present findings from an anthropological field study on the role of language and language policy in migration from Poland to Norway, and the larger implications for emerging language and immigration policy in Europe. Initial fieldwork in Norway found that Polish workers without knowledge of the Norwegian language struggled to secure employment in the formal economy. The 2008 financial crisis intensified competition in the labour market and underscored fluency in Norwegian as a means of discriminating among workers. Comparative case studies of language schools revealed that these organizations are active participants in channeling Polish migrants' movements into a segmented labour market, often in ways that involve cooperation between private companies and the State. We frame the Norwegian case within the larger context of Europe and the trend there toward favoring integration over multiculturalism. The emergence of restrictive language policies in Europe may be interpreted as a legally and culturally acceptable means for discouraging access to rights associated with permanent residency or citizenship by work migrants from CEE countries, while at the same time permitting them access to the labour market for temporary work. The long‐term consequences of such policies for European society are uncertain.     

Channels of Entry and Preferred Destinations: The Circumvention of Denmark by Chinese Immigrants

As globalization spread during the 1990s, and especially since the turn of the millennium, European states have increasingly claimed their right to assert their sovereignty by regulating migration at the level of the individual (OECD, 2001: 76–81). Political parties have succeeded in gaining support on policy statements pertaining exclusively to migration. For example, recent legislation in Denmark restricts the categories of persons eligible as refugees to “Convention refugees” satisfying only the narrowest international criteria set out in the UN Refugee Convention. The civil rights of asylum seekers are restricted by prohibiting marriage while their applications are under review. To limit family reunification among immigrants, the present Danish Government has even prohibited immigrants with permanent residence status and Danish citizens from bringing non‐Danish spouses under age 24 into the country. These attempts at border enforcement and immigration control have been described by some critics as the endeavours of European Union (EU) members to build a “Fortress Europe” against immigrants from developing countries. Policy decisions and the implementation of various measures from finger printing to radar surveillance to control immigrants have corroborated such perceptions, but this paper will show that gaining entry to a highly controlled country such as Denmark from a poorer country such as the People's Republic of China (PRC) is fairly straightforward. Politicians may wish to convey the impression of being in control of international mobility by launching diverse anti‐immigration acts, but since the immigration embargo of the early 1970s all EU countries have received millions of immigrants, and increasingly permit or accept immigrants of various kinds to reside and work within their borders (Boeri et al., 2002). Immigration from developing countries is not evenly distributed throughout the EU, but rather targets specific destinations. This article will attempt to explain the direction of Chinese immigration flows to Europe in response to labour‐market demand, rather than as a consequence of “loopholes” in a country's legal or welfare provisions. By analysing historical and demographic data on the PRC Chinese in Denmark, I attempt to demonstrate that, despite being a European country with one of the lowest asylum rejection rates for PRC Chinese, the scope of Chinese asylum seekers and regular and irregular migrants arriving by way of family reunification remained limited in the 1990s compared to southern, central, and eastern European countries. My analysis of Danish data in relation to Chinese migration suggest that destinations related to the globalization of Chinese migration is more determined by labour and capital markets than the presumed attraction of social welfare benefits provided by a European welfare state such as Denmark.     

The EU‐Turkey‐'deal': Legal Challenges and Pitfalls

The EU‐Turkey “deal”, based on the Joint Action Plan (JAP) between the European Union (EU) and Turkey, raises fundamental questions on the range of European asylum law as well as on the scope of the safe third country concept, which has turned out to serve as a political master key to “solve” the problems of the so‐called “refugee crisis” in Europe. This article discusses the legal possibilities of the application of the concept as well as its limitations regarding the human rights orientation of European and international law, focusing on the evolvement and legal implementation of the “Merkel Plan”. The legal analysis also focusses on recent ideas to make new “deals” with third states such as Libya. It concludes with a critical but differentiated(?) acclaim of the controversial externalizing policy approach.     

Youth earnings and labour market volatility in Europe

The authors provide new evidence on youth earnings and labour market volatility, including flows into and out of employment, across Europe during the Great Recession. EU‐SILC data for the period 2004–13 reveal large disparities in volatility levels and trends across European countries. As expected, the Great Recession increased youth labour market volatility, offsetting the trends observed over the previous years of economic prosperity. A variance decomposition exercise points to greater exposure to worker turnover in southern Europe. Fixed effects regression on labour market institutions relates higher unemployment benefits and more stringent employment protection legislation to lower earnings and labour market volatility.