Vacancy Referrals,Job Search,and the Duration of Unemployment: A Randomized Experiment

One goal of the Public Employment Service is to facilitate matching between unemployed job‐seekers and job vacancies; another goal is to monitor job search so as to bring search efforts among the unemployed in line with search requirements. The referral of job‐seekers to vacancies is one instrument used for these purposes. We report results from a randomized Swedish experiment where the outcome of referrals is examined. To what extent do unemployed individuals actually apply for the jobs they are referred to? Does information to job‐seekers about increased monitoring affect the probability of applying and the probability of leaving unemployment? The experiment indicates that a relatively large fraction (one‐third) of the referrals do not result in job applications. Information about intensified monitoring causes an increase in the probability of job application, especially among young people. However, we find no significant impact on the duration of unemployment.     

Do Benefit Hikes Damage Job Finding? Evidence from Swedish Unemployment Insurance Reforms

Abstract. In 2001 and 2002, Sweden introduced several unemployment insurance reforms. A major innovation in the first reform was the introduction of a two‐tiered benefit structure for some unemployed individuals. This system involved supplementary compensation during the first 20 weeks of unemployment. The 2002 reform retained the two‐tiered benefit structure but involved also substantial benefit hikes for spells exceeding 20 weeks. This paper examines how these reforms affected transitions from unemployment to employment. We take advantage of the fact that the reforms had quasi‐experimental features where the ‘treatments’ differed considerably among unemployed individuals. We find that the reforms had strikingly different effects on job finding among men and women. The two reforms in conjunction are estimated to have increased the expected duration of unemployment among men but to have decreased the duration of unemployment among women. The overall effect on the duration of unemployment is not statistically different from zero. However, the reforms reduced job finding among men who remained unemployed for more than 20 weeks.     

中国积极劳动政策的实践

本文根据对北京、上海和苏州三个试点城市及其他10余个城市实施积极劳动政策的调查及国际比较 ,初步评估了中国实施积极劳动政策尤其是针对国有企业下岗职工的创业扶持政策的成效得失。文章认为 ,中国在特殊背景下实施积极劳动政策的是必要的 ,效果也是比较显著的 ,但随着劳动就业形势的变化 ,对积极劳动政策的实施效果有必要进行认真的评估 ,并在此基础上进行适当的调整     

THE POLITICAL ECONOMY OF FLEXICURITY

We document the presence of a trade‐off in the labor market between the protection of jobs and the support offered to unemployed people. Different countries’ locations along this trade‐off represent stable political‐economic equilibria. We develop a model in which individuals determine the mix of job protection and support for the unemployed in a political environment. Agents are heterogeneous along two dimensions: employment status (insiders and outsiders) and skills (low and high). Unlike previous work on the political economy of labor market institutions, we emphasize the role of job protection and unemployment benefits in the wage‐setting process. A key implication of the model is that flexicurity configurations with low levels of job protection and high levels of support to the unemployed should emerge in the presence of a highly educated workforce. Panel regressions of countries’ locations along this institutional trade‐off are consistent with the implications of our model.     

DOES THE ILO DEFINITION CAPTURE ALL UNEMPLOYMENT?

The labour market status of many nonworking persons is at the boundary between unemployment and inactivity. Like the unemployed, they seek and are available for work; unlike them, their last search action was not recent enough to meet the International Labour Office definition of unemployment. In this paper we examine by nonparametric tests how the transition probabilities of these out‐of‐the‐labour‐force job seekers differ from those of the unemployed as well as the other nonparticipants. First, using data from the European Community Household Panel, we show that in most EU countries these job seekers constitute a distinct labour market state. Second, we rely on information available only in the Italian Labour Force Survey to derive a measure of search intensity that we use to break down the out‐of‐the‐labour‐force job seekers. On the basis of their transition probabilities, the most active are indistinguishable from the unemployed. (JEL: J64, J22, R23)     

The Interaction between Income Support Programs

Employment insurance (EI) and social assistance (SA) represent two key income support programs in Canada. The structure of these programs is similar to those found in many countries where unemployed individuals may use a number of sources to fund job‐search activities and provide income support during periods of diminished employment income. In this paper, we examine the nature of the interaction between the programs and their overall impact on labor market outcomes. We use the 1997 Canadian Out of Employment Panel data set to examine behavior of a set of individuals following the loss of employment. Results indicate that reductions in the generosity of SA results in lower use of both income support programs. Conversely, if the generosity of the EI program is curtailed this reduces use of the EI program and leads to greater use of the SA program.     

Hierarchical Multi‐skill Resource Assignment in the Telecommunications Industry

We formulate a discrete time Markov decision process for a resource assignment problem for multi‐skilled resources with a hierarchical skill structure to minimize the average penalty and waiting costs for jobs with different waiting costs and uncertain service times. In contrast to most queueing models, our application leads to service times that are known before the job is actually served but only after it is accepted and assigned to a server. We formulate the corresponding Markov decision process, which is intractable for problems of realistic size due to the curse of dimensionality. Using an affine approximation of the bias function, we develop a simple linear program that yields a lower bound for the minimum average costs. We suggest how the solution of the linear program can be used in a simple heuristic and illustrate its performance in numerical examples and a case study.     

THE LOT OF THE UNEMPLOYED: A TIME USE PERSPECTIVE

This paper provides new evidence on the time use of employed and unemployed individuals in 14 countries. We devote particular attention to characterizing and modeling job search intensity, measured by the amount of time devoted to searching for a new job. Job search intensity varies considerably across countries, and is higher in countries that have higher wage dispersion. We also examine the relationship between unemployment benefits and job search.     

Rewarding creativity: when does it really matter?

This study examined the possibility that the relation between extrinsic rewards (e.g., pay and recognition) and employee creativity varied as a function of two conditions: employee job complexity and employee cognitive style. Our results showed a positive relation between extrinsic rewards and creativity for employees with an adaptive cognitive style who worked on relatively simple jobs. We found a weak relation between rewards and creativity for employees with an innovative cognitive style who worked on complex jobs and a negative relation for those in the adaptive style/complex job and innovative style/simple job conditions. We discussed theoretical and practical implications of these findings.     

The Influence of Unemployment Benefits on Unemployment Duration: Evidence from Spain

ABSTRACT: This paper analyses the duration of unemployment spells and the possible incidence of unemployment insurance on job search behaviour and voluntary duration of unemployment in Spain. To do so, a longitudinal data set containing information on unemployment recipients during the period 1987-93 is used. Hazard rates and survival profiles are constructed for the cohorts of unemployed workers entering the benefit system at different points in time, and a logit model of the probability of leaving the system before exhausting entitlement period is presented. The results do not support the view that the unemployed tend to intensify their job search when benefits are near exhaustion.     

Job Losses,Unemployment Duration and New Jobs in Spain

Abstract. This article focuses on workers who permanently lost their jobs for involuntary reasons in Spain. We use a 1985 representative survey of the Spanish labor force containing retrospective questions related to workers' mobility. We evaluate several characteristics of job losers, as compared to other unemployed workers with experience by the end of 1985. Thereafter, an analysis of job losses addresses the following questions: (1) What types of jobs were lost? (2) How did workers perform after their job loss? (3) How long have they been out of work? (4) What are the characteristics of the new jobs found?     

Effects of Changes in the Unemployment Insurance Eligibility Requirements on Job Duration — Swedish Evidence

This paper investigates the impact of the unemployment insurance (UI) entrance requirement on employment duration among earlier unemployed in Sweden. I exploit changes in the rules taking place in 1994 and 1997 to study behavioural adjustments in the timing of job separation in 1992, 1996, and 1998, respectively. Performing across‐year analyses with years involving different working requirements, I find some evidence of clustering of job exits at the time of UI qualification. By using predicted hazard rates for each week, I calculate an approximate 2.3‐week extension in average employment duration between 1996 and 1998, due to the 5‐week prolonging of the entrance requirement.     

Low‐wage Jobs — Springboard to High‐paid Ones?

We examine whether low‐paid jobs have an effect on the probability that unemployed persons obtain better‐paid jobs in the future (springboard effect). We make use of data from the German Socio‐Economic Panel (SOEP) and apply a dynamic random effects bivariate probit model. Our results suggest that low‐wage jobs can act as springboards to better‐paid work. The improvement of the chance to obtain a high‐wage job by accepting low‐paid work is particularly large for less‐skilled persons and for individuals who experienced longer periods of unemployment. Low‐paid work is less beneficial if the job is associated with a low social status.     

SEARCH INTENSITY,DIRECTED SEARCH,AND THE WAGE DISTRIBUTION

We propose a search equilibrium model in which homogeneous firms post wages along with a vacancy to attract job seekers while homogeneous unemployed workers invest in costly job seeking. The key innovation relies on the organization of the search market and the search behavior of the job seekers. The search market is continuously segmented by wage level, individuals can spread their search investment over the different submarkets, and search intensity has marginal decreasing returns in each submarket. We demonstrate the existence of a nondegenerate equilibrium wage distribution. The density of this wage distribution is increasing at low wages and decreasing at high wages. The distribution can be right‐tailed, and, under additional restrictions, is hump‐shaped. Our results are illustrated by an example generating a Beta wage distribution.     

New Mothers’ Labour Force Participation in Italy: The Role of Job Characteristics

Abstract. In this paper we use newly available individual‐level data from the Longitudinal Survey of Italian Households to investigate the factors associated with female labour force participation after the birth of the first child. We focus on the role of pre‐marital job characteristics and find that new mothers who worked without a contract are less likely to participate, while those who worked in the public sector or in a large private firm have a higher probability of being in the labour force after childbearing. We suggest that these effects could be at least partly attributed to differences in the level of job protection and employment stability enjoyed by workers. This implies that in Italy women with highly protected and stable jobs might find it easier to combine career and family, whereas those who are less sheltered by the legislation might be more likely to be inactive after becoming mothers.     

The Long‐term Unemployed: A New Protected Class of Employee?

Since the onset of the latest United States (U.S.) recession (beginning in December 2007), the U.S. economy has been posting high unemployment levels consistently exceeding 8 percent. Of specific interest, the U.S. Department of Labor, Bureau of Labor Statistics (BLS), reports on a specific subset of the U.S. unemployed: the long‐term unemployed, defined as those who are unemployed for 27 weeks and over. Since December 2009, the share of the long‐term unemployed of the total U.S. unemployed has exceeded 40 percent (through April 2012), the highest level since 1948 when data was first collected. A phenomenon of this recession is an alleged public bias by American private sector employers against hiring the long‐term unemployed, or even simply those unemployed. While the authors support the removal of discrimination against the unemployed in job advertisements, they cannot support the larger notion of including those who are unemployed as a protected class of employees. Becoming or being unemployed is a state that one can change, and based on the lack of research on how widespread this discrimination is (beyond anecdotal stories or limited research surveys), they believe that extending protection under equal employment opportunity legislation would be overreaching and inappropriate at this time.     

Rehires and Unemployment Duration in the Swedish Labour Market — New Evidence of Temporary Layoffs

The paper investigates temporary layoffs in the Swedish labour market. Previous reports of few temporary layoffs are rejected. About 45 percent of unemployed people who found a job returned to a previous employer. As a stock measure, 10 percent of the unemployed are on temporary layoff. Using new job and recall as distinct exits in a competing risks model, one cannot reject a horizontal duration dependence for new jobs, while the recall hazard shows a strong, negative duration dependence. Clearer predictions of the effect of education on job probabilities are also found. Further, the results probably have implications for the interpretation of several policy parameters, including labour market programme outcomes.     

Flexible Work Arrangements and Intentions of Unemployed Women in Cyprus: A Planned Behaviour Model

Drawing from the theory of planned behaviour, we use 18 focus groups with 113 unemployed women and 150 mail questionnaires to explore whether and how unemployed Cypriot women's subjective norms, attitudes, perceived behavioural control and job versus career aspirations influence their intentions to adopt employee‐ and employer‐driven flexible work arrangements. To analyse the information gathered, we used a combination of content analysis, an external panel of practitioners and academics, principal components analysis, and regressions. Results show that women's positive attitudes towards child‐caring and self‐enhancement and their subjective norms of organizational inflexibility were positively related mainly with intentions to adopt employee‐driven flexible work arrangements. Further, women who found childcare support and employer requirements limiting were more interested in telework; the latter were also more interested in temporary work. Finally, women's career aspirations were related with weekend work and telework, whilst their job aspirations were associated with temporary work. Results raise issues for employers and policy‐makers in Cyprus, and possibly other southern European countries facing similar challenges, in supporting women to become fully integrated in the labour market.     

Online scheduling with a buffer on related machines

Online scheduling with a buffer is a semi-online problem which is strongly related to the basic online scheduling problem. Jobs arrive one by one and are to be assigned to parallel machines. A buffer of a fixed capacity K is available for storing at most K input jobs. An arriving job must be either assigned to a machine immediately upon arrival, or it can be stored in the buffer for unlimited time. A stored job which is removed from the buffer (possibly, in order to allocate a space in the buffer for a new job) must be assigned immediately as well. We study the case of two uniformly related machines of speed ratio s≥1, with the goal of makespan minimization.     

Preliminary Validation and Training of Supervisory Interactional Skills

Employee job satisfaction and performance are critical to the effectiveness of an organization. Although satisfaction and performance are not determined in total by a supervisor's interactional skills, it appears that interactional skills can significantly influence employee satisfaction and productivity. This research was conducted to further validate the types of interpersonal skills important in supervisory interactions, and then to evaluate the effectiveness of a supervisory training workshop in improving these aspects of managers' repertoires. In the first study social validation and survey procedures were used to identify supervisory behavior that employees judge to either facilitate or inhibit their job satisfaction and performance. Based on these results, the workshop training program was developed and tested in a second study which revealed a significant improvement in the group of supervisors who underwent training versus a no-training control group. This study provided a preliminary demonstration of the efficacy of using a behavioral training program to improve supervisors' interactional skills judged to be related to an organization's level of satisfaction and performance.