Methodological Issues in Labour Economics: Procedures for Procedural Rationality?

Abstract. This paper examines methodological issues in labour economics, by examining the claim that it is moving closer to notions of procedural rationality advocated by Herbert Simon. A content analysis of the Journal of Labor Economics shows that the orthodox methodological perspective of deductivism has a strong hold in labour economics, and the nature of the empirical work is also allied to this perspective, casting doubts as to whether labour economics has moved towards procedural rationality. The paper then explores the possibilities of a bridge between labour economics and the schools of institutional labour economics and industrial relations. The paper argues that the former needs to borrow in a more constructive way from the latter in order to construct the procedures for procedural rationality.     

Semicontinuous Representability of Homothetic Interval Orders by Means of Two Homogeneous Functionals

It is well known that interval orders are particularly interesting in decision theory, since they are reflexive, complete and nontransitive binary relations which may be fully represented by means of two real-valued functions. In this paper, we discuss the existence of a pair of nonnegative, positively homogeneous and semicontinuous real-valued functionals representing an interval order on a real cone in a topological vector space. We recover as a particular case a result concerning the existence of a nonnegative, positively homogeneous and continuous utility functional for a complete preorder on a real cone in a topological vector space.     

A comparative analysis of school-to-work transitions in the European Union1

The present paper describes some aspects of ‘school-to-work’ transition by analyzing the employment situation of individuals as a function of the time elapsed since the completion of education or training. Our perspective is interdisciplinary, comparative and dynamic, with special focus on the patterns in southern European countries. In the literature, most of the studies have had the basic approach of constructing indicators based on retrospective information on the time of first leaving continuous education, and current information on status and characteristics of the person's economic activity – expressing the status of activity as a function of the time elapsed since leaving continuous education. In this approach, essentially cross-sectional (though in part retrospective) information is interpreted as if it pertains to real cohorts. Much of this comparative analysis of school-to-work transitions in EU countries has been based on the EU Labour Force Survey, the 2000 round of which incorporated a special module to collect information on the subject. Our basic approach is to use the longitudinal data from the European Community Household Panel to identify, at the time of each wave, the person's most recently completed education and training, and study this in relation to the person's current employment situation and other characteristics as a function of the time elapsed since that completion. Hence, in form at least, our approach is similar to that of earlier studies based on the LFS, though there are considerable differences in substantive content and statistical methodology resulting from the use of different types of data. We also demonstrate how data from a panel survey may be cumulated over time to obtain a more adequate sample size.     

Panel regression models for measuring multidimensional poverty dynamics

This work concerns the study of poverty dynamics and the analysis of the influencing socio-demographic factors. A fuzzy and multidimensional approach has been chosen in order to define two different poverty measures. A panel regression model has been estimated and particular attention has been paid to the treatment of the unobservable heterogeneity among longitudinal units. The specified model combines autoregression with variance components. The empirical analysis has been conducted using the data set of the British Household Panel Survey (BHPS) from 1991 to 1997. This work was co-financed by Murst funds for the projects “Occupazione e disoccupazione in Italia: misura e analisi dei comportamenti”. The paper is the result of the common work of all the authors; in particular G. Betti has written Sects. 2,5.1 and 5.3.1; A. D’Agostino has written sections 4, 5.2 and 5.4; L. Neri has written Sects. 1, 3, 5.3.2 and 6.     

Marital disruption and economic well-being: a comparative analysis

Summary.  Though there is a considerable literature concerned with the economic consequences of marital breakdown, there is still substantial disagreement in terms of its magnitude. One of the major problems underlying this debate is how economic well-being is defined. We implement several measures of well-being of monetary and multidimensional nature by using data from the European Community Household Panel. Another issue in this literature concerns selection bias of divorcing couples. We tackle this issue by using a propensity score matching technique combined with a difference-in-differences estimator. Results confirm the importance of the definition of well-being. We find a strong gender bias when using monetary measures but a considerably lower bias, and for some countries non-existent, when using non-monetary indices.     

Poster Abstracts

Objectives. To analyse the relation between results of the Aging Males' Symptoms (AMS) questionnaire for aging males, and of quality of life (QOL) questionnaire SF-12 and cardiovascular risk factors.

Methods. 1,927 men aged 55–85 years were interviewed by 56 general practitioners. During the interview the men were asked to fill in the AMS scale and the QOL questionnaire SF-12.

Results. Of 1,927 men 1,806 men filled correctly the AMS questionnaire. The mean SF-12 mental index was respectively 55.9 in men with a total AMS score indicating no impairment, 50.9 mild, 42.8 moderate, and 32.8 severe impairment. The corresponding values for the physical index were 51.2, 46.7, 40.8 and 32.3.

A history of diabetes was associated with an increased risk of reporting moderate/severe impairment: in relation to the total AMS score the odds ratio, (OR), of moderate/severe impairment in comparison with no impairment was 1.6 (95%CI 1.2–2.1). A history of myocardial infarction and hypertension increased the risk (respectively OR 1.4 (95%CI 1.1–18) and 1.7 (95%CI 1.2–2.4)).

Conclusions. This study shows that higher AMS scores are associated with lower SF-12 indices and suggests that elevated values of the AMS score are associated with cardiovascular risk factors or diseases.     

Educational Mismatch of Graduates: a Multidimensional and Fuzzy Indicator

In this paper we attempt to measure the educational mismatch, seen as a problem of overeducation, using a multidimensional and fuzzy methodology. Educational mismatch can be difficult to measure because many factors can converge to its definition and the traditional unidimensional indicators presented in literature can offer a restricted view of the problem. We discovered two dimensions that properly define overeducation. The first includes information regarding job satisfaction, the use of expertise and the coherence between study and work, but also the measure on which the traditional indicator is based and the second concern earning aspects. We then calculate a degree of membership to the set of overeducated workers using the defined dimensions. We believe that in this manner we can partially overcome the rigidity of the traditional measures. Our findings suggested that generally women have a degree of mismatch higher than men and the graduates in Pharmacy, Medicine and Engineering are the least overeducated in terms of the first dimension, even if in terms of the earnings dimension they have similar mismatches to the other fields of education. Self-employment and collaboration contracts reduce overeducation when the first dimension is considered; on the other hand, when the second dimension is taken into account graduates with collaboration contracts are the most mismatched out of those having a job. Additionally, university reform introduced in the academic year 2001–2002 in the Italian higher education system is shown as not contributing to a reduction of the overeducation phenomenon.     

A Fuzzy Index and Severity Scale to Measure Violence Against Women

Social Indicators Research - Measuring and comparing levels of violence against women across individuals or countries are controversial exercises, and yet they remain essential to understanding the...     

How to Reduce the Impact of Equivalence Scales on Poverty Measurement: Evidence from Turkey

The main aim of the paper is to contribute to the poverty measurement literature by demonstrating a method to reduce the impact of equivalence scales in poverty measurement. This is accomplished by choosing the most appropriate reference household type. The results showed that one adult household is certainly not suitable for being the reference household type. When one adult household is set as the reference, in the range of no equivalence scale and per capita equivalence scale, poverty head count ratio changes from 1 to 48 %, showing the huge effect of the equivalence scale choice. Also the analyses at household size level showed that one adult household type is not convenient to be the reference household type. On the other hand, no clear distinction could be made between central household types, but the importance of choosing a household type close to the center was demonstrated for Turkish data.