Search

The article presents a comment on Sudipto Bhattacharya's paper, "An Exploration of Nondissipative Dividend-Signaling Structures," a two-part paper which develops a non-dissipative "quota-based" signaling model, and then applies the model to the problem of dividend signaling in the capital market. The author takes issue with this application, which he claims violates generally accepted properties of asymmetric information models because it is not internally consistent, rational, and fails to endogenize a critical market determined functional relationship.

The discourse of deservingness has been mobilised against certain groups in the UK society navigating UK labour markets, among them refugees and asylum seekers. These discourses, leading to the stigmatisation of the unemployed are coupled with an emphasis on the importance of individuals taking responsibility to develop their 'employability'. Little attention has been paid to scrutinise the contrast between the deservingness rhetoric and policy making with the actual conditions newcomers, and in particular refugees and asylum seekers, are confronted with when seeking employment. Our paper fills such a gap by indicating key contradictions at the heart of labour market integration in the UK. On the one hand, the emphasis on deservingness is coupled with policy discourses that construct an environment shaped by welfare and labour market chauvinism. On the other hand, the policy architecture is fundamentally flawed in a number of ways in terms of the support mechanisms necessary to ensure that newcomers can successfully integrate into the labour market. [ABSTRACT FROM AUTHOR]

We examine the effect of labor mobility on venture capital (VC) investment. Following the staggered adoption of the inevitable disclosure doctrine that restricts labor mobility, VCs are less likely to invest in affected states. This effect is more pronounced when human capital is more important to startups, when VC investment is more uncertain, and when VCs' monitoring costs are higher. The reduced innovation productivity of employees is a plausible underlying mechanism. To mitigate this adverse effect, VCs stage finance startups more and syndicate more with other VCs. Our paper sheds new light on the real effects of labor market frictions. [ABSTRACT FROM AUTHOR]

This note provides a nontechnical summary of a research paper (Bullard and DiCecio [2021, Classical policy benchmarks for economies with substantial inequality, Federal Reserve Bank of St. Louis, unpublished manuscript]) that I presented as the NIESR 2021 Dow Lecture on 9 February 2021. In the paper, we construct a simple benchmark macroeconomic model with substantial heterogeneity among households, enough to generate empirically plausible Gini coefficients for the distributions of consumption, income and financial wealth. The model includes aggregate shocks as well as both permanent and temporary idiosyncratic uncertainties. Four policymakers—implementing monetary, fiscal, labour market and education policies—act in concert to achieve a first-best allocation of resources. We argue that the roles of these policymaker types are 'classic' and match up well with observed policymaker roles in OECD countries. We regard this simple economy as a benchmark for the study of other aspects of the interaction between policy and inequality. [ABSTRACT FROM AUTHOR]

In this paper, we estimate the causal effects of a set of active labor market programs for male unemployed refugees on welfare who entered Germany between, 2013 and September, 2016. Using rich administrative data, we employ covariate balancing propensity scores combined with inverse probability weighting to estimate effects up to 33 months after the start of treatment. Our results show that relatively short-term training in the form of Schemes by Providers and In-Firm Training, as well as longer-term Further Vocational Training programs have a positive impact on both the employment chances as well as labor market earnings of refugees in the medium run. So-called "One Euro Jobs", a public employment program, does not yield positive effects on employment or earnings. Sensitivity analyses confirm that our results are unlikely to be driven by unobserved confounding. [ABSTRACT FROM AUTHOR]

This paper considers social security policy and structures in relation to the labour market of the late 1980s and 1990s. The paper begins by describing the labour market of the late 1980s and summarising projective descriptions of labour demand in the 1990s. The second section of the paper reports on recent research examining the labour supply behaviour of long term unemployed people, drawing out the role of social security policy and structures therein. The third section of the paper concludes that the role of social security policy is at present essentially reactive rather than proactive; that it does little to address the likely need for labour of certain kinds in the 1990s; and that efforts to address the problem of long term unemployment through social security policy have been largely misdirected. The final section of the paper briefly considers some of the ways in which social security systems can be more proactive and suggests a number of both short term and longer term policy changes which research indicates would be of benefit in the UK. [ABSTRACT FROM AUTHOR]

The papers in this volume examine a series of important questions that influence the transition from full time employment to complete retirement. Retirement is shown to be a process as individuals move from career jobs to bridge jobs to being out of the labor force. The articles examine the characteristics of bridge jobs and the employment conditions that older workers prefer. Analysis provided by the authors show the importance of saving throughout work life and how pension plans and retirement saving plans influence the timing of retirement. [ABSTRACT FROM AUTHOR]

This paper investigates the growth and clustering of craft breweries in New Jersey. We compiled a historical dataset from 1995 to 2020 that allows us to measure the degree of geographic clustering among craft breweries in New Jersey. The number of craft breweries in New Jersey grew 491% from 2012 to 2020 (from 22 to 130 craft breweries). An impetus for this growth was that New Jersey enacted legislation in 2012 that made opening and operating a craft brewery in the state more economically viable. Our analysis finds that craft breweries in New Jersey are clustering in specific parts of the state and that this is likely due to co-location benefits such as building a culture of craft beer that drives innovation, knowledge sharing, customer sharing, and a thicker labor market. While distinct craft beer clusters have formed in New Jersey, we find there is still significant opportunity for growth. Our analysis confirms this using data on planned craft brewery openings to measure changes in the size and density of clusters and where, in New Jersey, new clusters are likely to form. [ABSTRACT FROM AUTHOR]

Rapid technological change – the digitalization and automation of work – is challenging contemporary welfare states. Most of the existing research, however, focuses on its effect on labor market outcomes, such as employment or wage levels. In contrast, this paper studies the implications of technological change for welfare state attitudes and preferences. Compared to previous work on this topic, this paper adopts a much broader perspective regarding different kinds of social policy. Using data from the European Social Survey, we find that individual automation risk is positively associated with support for redistribution, but negatively with support for social investment policies (partly depending on the specific measure of automation risk that is used), while there is no statistically significant association with support for basic income. We also find a moderating effect of the overall size of the welfare state on the micro-level association between risk and preferences. [ABSTRACT FROM AUTHOR]

This paper explores a neglected normative dimension of algorithmic opacity in the workplace and the labor market. It argues that explanations of algorithms and algorithmic decisions are of noninstrumental value. That is because explanations of the structure and function of parts of the social world form the basis for reflective clarification of our practical orientation toward the institutions that play a central role in our life. Using this account of the noninstrumental value of explanations, the paper diagnoses distinctive normative defects in the workplace and economic institutions which a reliance on AI can encourage, and which lead to alienation. [ABSTRACT FROM AUTHOR]

This paper examines financial literacy in Canada using a dataset from early 2023 that measures the knowledge of middle-aged Canadians regarding their retirement income system. We first document important financial literacy differences across gender, age, education, and labor market status. Using detailed questions on the four main aspects of the retirement income system, we then show a strong correlation between financial literacy and the knowledge of the retirement system in Canada. Finally, we provide evidence that general financial literacy and knowledge of the retirement system matter for retirement preparation, by showing that Canadians with higher financial literacy scores and better knowledge of the retirement system are more likely to have a plan for retirement. [ABSTRACT FROM AUTHOR]

Understanding the historical policy pathways that have led to the constellation of policies that both reflect and shape the current gender order can reveal reasons for the persistence of gender inequality in paid work and unpaid family care. Bringing together existing research and policy critique with Carol Bacchi's framework of policy as 'gendering practices', this paper focuses on the role of policy as a process that constructs and upholds an unequal gender order. The discussion traces how UK social policies have since the establishment of the post-war welfare state articulated and positioned gendered possibilities for combining paid work and childrearing, shaping gendered and classed work-family life courses. The analysis illustrates that British social policy has not been consistently committed to a more equal gender regime but instead maintained a heteronormative family ideal and thus, despite various policy changes, the gendering of 'the worker' and 'the parent' as conceptualised in UK policy has persisted over the last several decades. [ABSTRACT FROM AUTHOR]

Japan's so-called Lost Decade of the 1990s presents a unique case study of an economy with a recent severe and prolonged recession, with large changes in the labor market and fiscal policy as the main policy available to the government. Japanese unemployment rate surged from 2.1% in 1991 to 5.4% in 2002. Meanwhile, the Japanese economy experienced a rise in government expenditures, while taxes remained fairly stable. This paper quantitatively evaluates the impact of these changes in fiscal policies on labor market variables, in particular the unemployment rate, during the 1990s. We build, calibrate, and simulate a dynamic general equilibrium model with search frictions in the labor market, a productive government sector, heterogenous government spendings, and different categories of taxes. Our model is able to reproduce the paths of the main labor market variables, and the counterfactual experiments show that the changes that took place in the different spending components affected the unemployment rate heterogeneously, although overall they kept unemployment lower than it could have been. We also find that had the government also implemented countercyclical tax policies, unemployment would not have risen as much as it did by 2002. [ABSTRACT FROM AUTHOR]

In 2014, the European Union adopted the Seasonal Workers Directive to achieve a twofold aim: meeting employers' demand for flexible and cheap labour and enhancing protection for third-country national (TCN) workers. Especially Article 23, the equal treatment provision, triggered a cautious optimism among scholars and trade unions, which looked at the Directive as a source of increased protection for seasonal workers. However, trade unions also pointed out the limited reach of the Directive, criticising its lack of commitment and ambition. Over the years, and especially during the Covid pandemic, it became clear that the Seasonal Workers Directive did not represent a game-changer for TCN seasonal workers, whose increased protections remained true only on paper. This contribution draws on the case of Italy during the pandemic to understand the reasons for the Directive's limited impact. The article critically examines the different political tensions underpinning the adoption of the Directive, to better understand why the Directive is not applied in practice and how it impacts the labour market and migrants' social conditions. [ABSTRACT FROM AUTHOR]

Based on two decades of Danish register data at the individual level, this paper finds that a 1-dollar increase in pension wealth leads to a 42-cent rise in total debt for a group of low-wage earners. Collective bargaining in the labor market provides time-sector variation in mandatory pension contribution rates, which we exploit in two empirical research designs; an event study and a cross-sectional instrumental variable regression model. Both methods demonstrate that the debt rise is accompanied by increased housing wealth and homeownership rates. Together, the empirical evidence indicates that mandatory pension contributions lead to a significant increase in net wealth, as well as in gross debt. [ABSTRACT FROM AUTHOR]

The economic decline of Italy between the mid-1990s and the outset of the financial crisis is a critical case in European political economy because its model of capitalism was deeply reformed at the time when its decline commenced. This paper argues that the Italian economic stagnation cannot be attributed to the lack of market-friendly reforms in a globalized economic context, as argued by previous literature. Instead, Italian economic decline is a consequence of institutional change which on the one hand has destroyed previous institutional complementarities, and on the other hand has led to an incoherent, or 'hybrid,' capitalist setting. Under the lenses of the Varieties of Capitalism approach, this paper reviews the main reforms in the fields of corporate governance and finance as well as in the labor market. It shows that such reforms established new institutions alternatively apt to support both strategic coordination and market coordination, resulting in institutional incoherence, and mixed incentives. In the short-run, incoherent reforms have reduced the availability of capital to SMEs; in the longer-run, they failed to give actors incentives to pursue innovation. This paper contributes theories of economic growth/decline focused on the supply-side of the economy and it is compatible with other – non-rival – explanations focused on the demand-side. [ABSTRACT FROM AUTHOR]

Traditionally, collective defined benefit pension schemes have played an important role in the provision of pensions. Various trends such as population ageing put these schemes under serious pressure, however. Whether this is good or bad depends among other things on two factors: one is the value of the risk sharing between generations that is organized by pension schemes, and another is the cost of the distortions of labour supply decisions that these collective schemes imply. This paper constructs a model with overlapping generations of households and a pension scheme to assess the role of these two factors. The paper finds that the welfare gain from intergenerational risk sharing generally dominates the cost of labour supply distortions. [ABSTRACT FROM AUTHOR]

This paper addresses an employer's decision to invest in firm-specific training for temporary workers within a search-matching framework with two-tier employment contracts. Based on the fact that opportunities to receive firm-provided training are significantly limited in temporary jobs, we examine whether policies aimed at inducing employers to provide training for temporary workers improve labor market performance. Our quantitative analysis produces the following results: first, reducing the cost of training temporary workers, which aims to directly increase their participation in firm-provided training, improves social efficiency but increases the unemployment rate, and decreases the share of permanent workers. Second, relaxing firing regulations on permanent jobs decreases the unemployment rate and increases the proportion of temporary workers who receive training and social welfare. Thus, a spillover effect of reforming employment protection legislation associated with permanent jobs is observed on training provision in temporary jobs. [ABSTRACT FROM AUTHOR]

In 2003, Norway implemented an 'Introduction Programme' that aimed to increase labour market inclusion among newly arrived immigrants. Its main objectives were to facilitate free courses in Norwegian language training and social studies, and education or on-the-job training. The participants were given an allowance to attend the programme. This paper uses administrative register data to evaluate the effect of the Norwegian introduction programme on female immigrants' employment and earnings prospects. The sample consists of female immigrants from Asia or Africa who immigrated to Norway 18 months before or after the implementation of the introduction programme. The study measures their probability of being employed and their mean earnings 4–6 and 7–9 years after immigration. The results show that the Norwegian introduction programme had a small but significant effect on women's employment, but not on their earnings. This article suggests that the small effect of the programme on employment and non-effect on earnings may imply a displacement effect rather than an improvement in language skills and labour market skills. [ABSTRACT FROM AUTHOR]

This paper investigates the association between religion and female labor market outcomes using new micro-level data on two distinct Muslim denominations in Turkey: Sunni and Alevi Muslims. We find a positive and significant association between being an Alevi Muslim and female labor force participation and employment, whereas there are no significant differences in male labor market outcomes between the two denominations. We provide evidence that Alevi Muslims have more gender-equal views regarding the role of women in the labor market and consider themselves as more modern. Both Sunnis and Alevis consider themselves as believers in religion (Islam). However, Sunnis are more likely to abide by the rules of religion. We argue that differences in views on gender roles and self-identity regarding modernity between the two denominations drive the results on female labor market outcomes. [ABSTRACT FROM AUTHOR]

Many countries have implemented policies to extend working lives in response to population ageing, yet there remains little understanding of what drives paid work in later life, nor how this is changing over time. This paper utilises the 1988/89 Survey of Retirement and Retirement Plans, the 1999 British Household Panel Survey and the 2008 English Longitudinal Study of Ageing, to investigate drivers of paid work in the ten years surrounding state pension age (SPA) for women and men in, comparing cohorts born in the 1920s, 1930s and 1940s. Using optimal matching analysis with logistic and multinomial regression models, the study assesses the relative importance of lifecourse histories, socio-economic circumstances and contemporaneous factors, in determining paid work in mid- and later life. Participation in paid work in the five years preceding and beyond SPA increased markedly for men and women across cohorts, with women's lifecourses and engagement with paid work changing considerably in these periods. However, for women, a lifetime history of paid work remained a crucially important predictor of paid work in later life, and this relationship has strengthened over time. Experiencing divorce has also become an important driver of paid work around SPA for the youngest cohort. Having children later, and still having a mortgage, also independently predict labour force participation for women and men. Across all cohorts and for women and men, working at these older ages was a function of higher income and better health. These findings suggest that policies which enable people to maintain ties to paid work across the lifecourse may be more effective at encouraging later-life employment than those concerned only with postponing the retirement transition. [ABSTRACT FROM AUTHOR]

While legal analyses of political economy typically centre on events and processes within the market, this discussion argues that contemporary dilemmas requires attention to labour and productive activity at its edges and beyond. Questions surrounding labour provide an unparalleled vantage point from which to assess how groups are differentially situated within the economy, especially at moments of economic crisis and transformation. The constitutive role of law in market relations, in turn, makes legal analysis fundamental to understanding how risks and rewards at work are distributed. Reflecting on the role of macroeconomic governance to work, evident in times of crisis in particular, and drawing upon concepts and tools developed within critical legal thought, this paper analyses two sites of labour, unpaid household care work and informal labour, that are at the centre of distributive struggles around work now. As the historical separation of the household and market labour discloses, transformations of legal form, and classification played a critical role in the simultaneous production of waged labour and valueless care. Similar processes are underway in labour markets now; thus, understanding the legal constitution of value and of work itself remains central to questions of inequality now. Bargaining analysis as well as taxonomies of family law suggest the significance of a wide range of legal rules and their interaction to labour market outcomes and the position of workers. The analysis of informal work points in a similar direction, as contract, competition, and corporate law and beyond are all implicated in the growth of informality and precarity at work. Finally, uncovering the legal foundations of racial fragmentation at work requires attention to multiple legal regimes as well as the conceptual and ideological commitments that sustain them. All engage questions about the role, and transformation, of legal form, classification and consciousness within contemporary political economy. [ABSTRACT FROM AUTHOR]

This paper establishes new stylized facts about labor market dynamics in developing economies, which are distinct from those in advanced economies, and then proposes a simple model to explain them. We first show that the response of hours worked and employment to a technology shock—identified by a structural VAR model with either short-run or long-run restrictions—is substantially smaller in developing economies. We then present compelling empirical evidence that several structural factors related to the relevance of subsistence consumption across countries can jointly account for the relative volatility of employment to output and that of consumption to output. We argue that a standard real business cycle (RBC) model augmented with subsistence consumption can explain the several salient features of business cycle fluctuations in developing economies, especially their distinct labor market dynamics under technology shocks. [ABSTRACT FROM AUTHOR]

One of the growing constituencies of populist movements has been those facing labour market risks. These individuals are hypothesized to be the most likely to find themselves in need of government protection or service provision as their occupations face challenges from abroad through global competition, domestically through competition from immigrant labour, or technologically from automation. Nations, however, vary in how their populations experience such risks. Some nations expend greater effort on job placement or retraining programmes. Others provide legislative protections for workers that shield them from the potential of lost employment. Using data from the latest three rounds of the European Social Survey, this paper seeks to examine how individual-level preferences towards populist radical right parties are mediated by the visibility/size of contemporary county-level efforts to ameliorate labour market risk in a sample of 14 West European nations. The analysis distinguishes whether occupational characteristics and/or government policies have a differential impact on supporting populist radical right parties. While labour market policies might be designed to mitigate labour market risk, for many individuals, they have the effect of intensifying support for populist parties. [ABSTRACT FROM AUTHOR]

Comments on an article about the development of textile industry in the southern region of the United States in 1800s. Discussion on textile labor force; Details of milling operations; Condition of the labor market in the industry.

The majority of refugees are children and youth and their integration and life-course transitions are a research priority. This paper examines the timing of refugee children and youths' entrance into the labour market and family formation (marriage/common law union and parenthood). It does so by examining how admission category, knowledge of a host country's official languages, and age at arrival shape their transition to adulthood. Using data from the Canadian Longitudinal Immigration Database and Heckman selection estimation, the paper finds minimal variation in refugee children and youths' entry into the labour market compared to children of other immigrant streams. It also finds that refugee children and youth start forming families at a younger age than children of economic class immigrants, but at an older age than family class children. The analysis also shows limited effects of knowledge of official language prior to arrival while age at arrival has a robust impact on their adulthood transitions. These findings shed light on the unique patterns of life-course transition among refugee children and youth and contribute to a better conceptualization of their experiences relative to children and youth of other immigrants. [ABSTRACT FROM AUTHOR]

Japan's labor market has been under severe strain over the past few decades, driven by its protracted economic recession, a series of labor market reforms, and changing labor management practices. Confronting these new challenges, an increasing number of young people have had extreme difficulties in searching for decent and stable jobs in the labor market, trapped in the vicious cycle of precarious employment. This paper examines the deterioration of employment and labor market conditions for Japan's youth after the collapse of the asset bubble in the early 1990s and the government's policy efforts to address these concerns, especially since the early 2000s, a period during which it has initiated a wide array of youth employment and labor market policies. In particular, it analyzes variations in policy target group and goal across different measures and evaluates the effectiveness and limitations of these programs in dealing with youth problems in the labor market. This paper argues that while the government has promoted various policy tools to help young people become economically and socially independent individuals, it has gradually shifted its policy focus toward human capital development for growth and industrial competitiveness as a way of revitalizing Japan's troubling economy. [ABSTRACT FROM AUTHOR]

The ageing of populations is an unprecedented worldwide phenomenon that has created anxiety about labour and skill shortages in many developed countries. One way to address these concerns is to extend the working lives of seniors through appropriate retirement, retention and recruitment policies. This paper utilises official policy documentation and employment data to compare the policies, practices and predicaments of senior employment in Hong Kong and Singapore, two of developed Asia's most ageing economies. It finds that while labour force participation rates among Hong Kong seniors have declined since the early 1990s, older workers in Singapore remain largely confined to the secondary labour market. This paper examines why these trends are occurring and whether longer working lives will lead to greater opportunities for ‘active ageing’ in employment or, conversely, force older workers into a reserve army of labour to maintain their incomes. [ABSTRACT FROM AUTHOR]

Labor market conditions in Greece have severely deteriorated during the crisis, affecting youths the most. Using the Greek crisis as a case-study, this paper examines the role of the family as a social safety net for its young members. Specifically, we test the relationship between youth labor outcomes and parental co-residence, whether this relationship has become stronger during the crisis, and the degree to which the relationship is causal. Our results confirm that the parental home is a refuge both for jobless youth and for those in poorly paid, insecure jobs, and this role has intensified during the crisis. We find no reverse causality between co-residence and employment status for young men, and significant reverse causality for women. This finding implies that all youths live in the parental home when they are in need themselves, but it is young women not men who live with parents when parents are in need or for cultural reasons. [ABSTRACT FROM AUTHOR]

There has been an explosion of interest in the "four-day-week" movement across the globe, especially due to its potential in addressing many of the societal challenges left by the COVID-19 pandemic. Four-day-week is a movement set to shorten the working hours of full-time workers without a reduction in pay. I aim to set out the case for a national move towards a four-day-week explaining why social policy scholars should lead the debate. First, I provide evidence of the societal costs that the current long-hours work culture has on workers' and their family's well-being and welfare, social inequality, and social cohesion. Shorter working can help tackle these issues by giving workers right to time, shifting the balance between work and non-work activities in our lives and valuing them both. Social policy scholars need to lead this debate owing to our existing knowledge and expertise in dealing with these social issues and state-level interventions. In addition, without pressing for fundamental changes in our labour market, we cannot adequately address some of the key challenges we face as a society. The paper ends with key research questions social policy scholars should address as a part of this move. [ABSTRACT FROM AUTHOR]

In this paper, a travel cost model was applied to the case of firewood collection to assess how the inclusion of household fixed effects and how assumptions regarding conditions in the local labor market impacted resulting welfare estimates. To assess these impacts, a unique household panel data set from Kagera, Tanzania was used. It was estimated that, under the assumption of constrained labor markets, households in the Kagera region of Tanzania are willing-to-pay, on average, $120 per year (2016 USD) for access to local forests. These estimated figures were nearly 50 per cent higher when household fixed effects were excluded and nearly 10 per cent higher under the assumption of perfect labor markets. In addition, these results support previous research showing that, in many developing countries, households' demand for firewood is inelastic and that households would be willing to spend a significant amount of their resources on forest access. [ABSTRACT FROM AUTHOR]

As a response to demographic ageing, various governments have been promoting social policies that promote older people's participation in productive activities, including those outside the formal labour market. Nevertheless, older people's behaviours do not simply reflect government policies and intentions. This paper explores how older people themselves interpret their social roles within a policy context that seeks to position them as providers of welfare through their participation in community activities. For this purpose, this paper draws on a qualitative case study of older people in Japan engaging in health promotion and mutual aid among local residents. By employing Hannah Arendt's distinction between the human activities of labour, work and action as a conceptual framework, it finds that although the purported purpose of community activities was to substitute decreasing pensions and family care or to create a better community, participants in this study valued their activities as a process of creating new relations and new realities through action. The paper argues that while labour has occupied a predominant position in the post-war welfare paradigm, community activities by an expanding population of older people may offer opportunities for action, which were not always available through paid work or care-giving in the household. [ABSTRACT FROM AUTHOR]

This paper shows how fiscal policy affects unemployment in a New Keynesian model with search and matching frictions and distortionary taxation. The model is estimated using US data that includes labor market flows and distinct fiscal instruments. Several findings stand out. First, unemployment multipliers for spending and consumption tax cuts are substantial, even though output multipliers turn out to be less than one. Second, multipliers for labor tax cuts are small. Third, fiscal rules enhance the positive effects of discretionary fiscal policy. However, these expansionary effects on the multipliers are modest compared to earlier studies. [ABSTRACT FROM AUTHOR]

An introduction is presented which discusses articles in the issue on topics including gendered impacts of extended working life, older women workers having relatively poor economic outcomes, and working career after an absence due to illness.

This paper augments the DMP model with large firms and intrafirm wage bargaining by an endogenous decision to become an entrepreneur that is based on heterogeneous entrepreneurial abilities. If workers' wage bargaining power is not too large and the match efficiency is not too low, the decentralized market equilibrium features an inefficiently high number of entrepreneurs, because they appropriate large parts of the surplus from matches. A realistic calibration with empirically plausible parameters shows this case to be the relevant one. Consequently, introducing a tax on the profits of entrepreneurs restores the constrained first-best allocation by affecting occupational choices. It drives rather unproductive entrepreneurs out of the market since the marginal entrepreneur is affected and not the average one. Thus, the negative effects on job creation are small. [ABSTRACT FROM AUTHOR]

This paper adds to the literature by identifying the effect of home ownership on rural-to-urban older migrants' labour market participation in China. Using the 2016 wave of the China Migrants Dynamic Survey, we find that older migrants who do not own houses are more likely to participate in the labour market than home owners. To alleviate endogeneity caused by the potential sample selection problem, the propensity score matching method is employed. Our results imply that home ownership can be used as a type of precautionary/retirement savings for older migrants, especially for the ones lacking in financial security. We also show that older migrants owning houses with a higher level of liquidity are less likely to participate in the labour market. It indicates that liquidity may significantly affect the effectiveness for older migrants to use home ownership as precautionary/retirement savings. [ABSTRACT FROM AUTHOR]

Unemployment periods and other career breaks have long-term scarring effects on future labour market possibilities, permanently affecting workers' retirement income and standard of living as pensioners. Previous literature has focused on the impact of job loss on working careers with little attention to its impact on pension wealth, particularly the extent to which longevity heterogeneity amplifies unemployment scars. This paper investigates the effect of single and multiple unemployment spells on the lifetime pension entitlements of earnings-related contributory pension schemes, considering the timing and duration of breaks, alternative lifecycle labour earnings profiles, scarring and restoration effects on labour market re-entry, the existence of pension credits and pension accruals for periods spent outside the labour market, longevity heterogeneity, and the accumulation and decumulation redistributive features of the pension scheme. Pension entitlements are estimated using a backward-looking simulation approach based on the actual Portuguese public pension system rules and stylized labour market profiles identified in the SHARE Job Episodes Panel data using a sequence analysis. Longevity heterogeneity is modelled using a stochastic mortality model with a frailty model. Our results show that the timing and duration of unemployment periods is critical, that scarring effects amplify pension wealth losses, that minimum pension provisions, pension credits and pension scheme redistributive features can partially mitigate the impact of unemployment periods on future entitlements, and that the presence of positive correlation between lifetime income and longevity career breaks can amplify the asymmetry in the distribution of pension entitlements across income groups. [ABSTRACT FROM AUTHOR]

Unemployment strongly influences a person's economic resources and life chances. Especially for unemployed individuals who have to rely on means-tested benefits, episodes of unemployment often go along with substantial material restrictions. Therefore, from a policy perspective, measures or regulations that might shorten unemployment episodes and reduce overall unemployment are particularly important. In this paper, we analyse whether concessions regarding the characteristics of the job searched for influence an individual's unemployment duration. In doing so, we focus on a particular aspect of availability requirements in Germany. This is the fact that for unemployed recipients of means-tested benefits almost all types of jobs count as suitable employment and, therefore, recipients are obliged to make job-related concessions if offered a job requiring such concessions. The results indicate that there is no positive effect of making concessions regarding qualification requirements or status on employment chances. In contrast, there are positive effects of wage concessions. However, searching for a job in a different occupation (that does not necessarily imply a concession) has a comparable, positive effect on finding employment. Thus, it appears that being generally flexible regarding one's future occupation might be at least as important for employment chances as making concessions. [ABSTRACT FROM AUTHOR]

Having grandchildren is known to reduce individuals' labour supply. However, it is unclear whether there is a negative association between grandchild care provision and employment among grandparents. Moreover, we do not know how the magnitude of any association between the two activities may vary across countries characterised by different child-care policy regimes. Using data from the Survey of Health, Ageing and Retirement in Europe, this paper investigates the association between daily grandchild care provision and two employment outcomes for grandmothers and grandfathers aged 50–69: the probability of being employed and the average weekly working hours. Recursive bivariate models are used to account for the potential selection of grandparents with different unobserved traits into work and family care. Estimates are compared across four country groups characterised by different child-care policy orientations: optional de-familisation, service de-familisation, supported familism and familism by default. On average, across 20 European countries, grandparents looking after grandchildren daily are no less likely to work than grandparents who do not; however, employed grandfathers work eight hours less per week if providing daily child care. Evidence of a negative association between daily grandchild care and employment is strongest in countries with familistic approaches to child care, with no association in countries characterised by optional de-familisation. This suggests that public support to child care may help retain grandparents in the labour force. [ABSTRACT FROM AUTHOR]

This paper is concerned with the research areas of defamilisation/familisation and adult worker models. It particularly focuses on demonstrating how the study of government pro-employment and decommodification measures for reducing defamilisation and familisation risks faced by women contributes to the examination of the adult worker models. It presents three analytical tasks. The first is to categorise the adult worker models into four types (market-focused, supported, choice-focused and collective consumption) based on different combinations of the pro-employment and decommodification measures. The second is to explore the relative desirability of these four types in enhancing women's well-being. Based on the case example of Hong Kong, the third is to examine issues concerning the application of the adult worker models in the analysis of how the government responds to defamilisation and familisation risks. [ABSTRACT FROM AUTHOR]

The paper revisits the literature on real rigidities in New Keynesian models in the context of an economy at the zero lower bound. It identifies strategic interaction among price- and wage-setting agents in the economy as an important determinant of both optimal policy and economic dynamics in deep recessions. In particular, labor market segmentation is shown to have a significant influence on the length of the forward commitment to keep interest rates at zero, the magnitude of the fiscal policy responses as well as inflation volatility in the economy under optimal policy. [ABSTRACT FROM AUTHOR]

Neoliberal governance has been associated with rising inequality and economic exclusion. Recent scholarship proposes that the social investment state (SIS) is a turn away from such inequality and exclusion-enhancing neoliberalism. The ideal SIS responds to neoliberalism-generated social ills by investing in the productive capacities of all its citizens. However, commentators ask whether an SIS addresses the plight of weaker elements in society, specifically that of disadvantaged ethnic minorities. This paper looks specifically at this question by utilising a critical-case study research design of a surprising example of social investment in disadvantaged ethnic minorities: the extensive labour market policies for Israeli Arabs. This paper introduces the concept of a neoliberal targeted SIS in which social investment programmes are developed for economic reasons, promoted by neoliberal actors (right-wing parties and Ministries of Finance), target narrow groups instead of being applied to all, and the preferred mode for the delivery of services is private. Egalitarian outcomes – to the extent that they materialise – might be thought of as a policy by-product. [ABSTRACT FROM AUTHOR]

This paper provides a critical account of the various roles that labour-law regulation has played in China's transition to a market-oriented economy. The analysis aims to contribute new insights to an ongoing debate on the relationship between economic development and legal rules and institutions in China. Discussions of social and labour rights have been on the periphery of a debate that has focused on property and contract rights (the so-called "Rights Hypothesis"). While numerous scholars have sought to debunk the explanatory power of the "Rights Hypothesis" in the case of China, I put forward an alternative "Social Rights Hypothesis." My proposed hypothesis seeks to explain how labour-law rules and institutions have co-evolved with the emergence of a labour market in China's economic development. Specifically, labour law has played not only a market-constituting role, but also market-corrective and market-limiting functions. [ABSTRACT FROM AUTHOR]

This article is an attempt to clarify the effects of the German labour market reforms, commonly known as the Hartz reforms. Competing arguments were used to identify the welfare implications for German society and the German economy in order to explore whether or not such labour market reforms might provide another German answer, following fiscal discipline, to the EU's post-euro-crisis management. This paper confirms that the Hartz reforms effectively reduced German unemployment, but they did not fundamentally solve the problem. Moreover, such effects appeared to propagate an increase in size of the low-paid sector, declining wages and increasing income inequality. The reforms were not welfare-enhancing for individuals because of increased poverty levels in employment and unemployment, which further implied a counter-productive risk for the German economy because of the contraction of domestic consumption, and potential social instability for German society because of rising inequality and deteriorating living standards. Therefore, Hartz-style reforms are neither a desirable model for other EU countries, nor the answer to Europe's post-euro-crisis management in a time of fiscal austerity and negative interest rates. The real danger to European integration, as argued in this article, is not the challenge from high unemployment, but from Germany's complacency of a one-size-fits-all thinking and, being the EU's leading country, its double standards towards and ignorance of the differential nature and contexts of the European unemployment issue compared with the German one. This article warns that the mishandling of labour market reforms could result in the collapse of the already fragile public confidence in European integration. [ABSTRACT FROM AUTHOR]

The rise of flexible employment in advanced democracies has been predominantly studied in the insider-outsider framework of the dualization literature. However, against the background of rising income inequality, it seems questionable to assume that all labor market insiders are equally affected by flexibilization. This paper explores whether flexibilization increases wage inequality among labor market insiders. I argue that flexibilization exposes insiders to a set of wage risks that are concentrated among low- and middle-income insiders, creating downward wage pressure on those insiders. The empirical analysis, covering 22 democracies between 1985 and 2016, finds that the deregulation of non-standard employment is associated with declining wage shares of low-income and middle-income earners, while top earners benefit. These major distributional shifts imply an important qualification of the dualization literature: rather than pitting insiders against outsiders, flexibilization 'at the margins' seems to exacerbate divides among insiders. [ABSTRACT FROM AUTHOR]

Within the context of the transformation of Turkey from a country of emigration to an immigration and transit country, the migration scene is becoming more heterogeneous, with both the formal and informal labor markets being increasingly internationalized. This paper focuses on de-qualification, defined as migrants taking on jobs that do not match their skills, which is a neglected issue within the migration literature on Turkey with the potential for further research. Based on open-ended interviews and participant observation in İstanbul, the paper elaborates on the different instruments of de-qualification. De-qualification is considered here as an important element of precariousness in the labor market, with different mechanisms functioning simultaneously; namely, accreditation problems, a language disadvantage, lack of information, and identity-based discrimination. [ABSTRACT FROM AUTHOR]

This paper describes the impact of disability in Australia on earning and learning. The report is based on the official statistics on Disability Ageing and Carers by the Australian Bureau of Statistics. Whilst 67.9% of those aged 15–64 years without a reported disability complete Year 12 only 43.6% of those with a disability complete the highest level of secondary schooling. In the labor market, the participation rate is lower for persons with a disability (53.4%) compared to 84.1% for those without a disability. Even when people with disabilities are ready to work it is accompanied by a higher rate of unemployment (10.3%) compared with 4.6% for those without a disability. Whilst general labor force participation has increased from 2003 to 2018 the labor force participation of persons with a disability has remained stubbornly constant. Furthermore, the unemployment rate for person with a disability has increased markedly from 2009 while that for persons without a disability has decreased. When the influence of all these factors is combined there is an overwhelming landscape of disadvantage within which a person with a disability has to navigate an educational and vocational pathway. [ABSTRACT FROM AUTHOR]