scholarly journals Labour Market Regulations and Capital Intensity

2018 ◽  
Author(s):  
Gilbert Cette ◽  
Jimmy Lopez ◽  
Jacques Mairesse
Keyword(s):  
Labour Market ◽  
Capital Intensity ◽  
Service Industries ◽  
Employment Protection ◽  
Skilled Workers ◽  
Large Country ◽  
Down Low ◽  
Highly Skilled ◽  
Protection Legislation ◽  
The Impact

What is the impact of labour market regulations as measured by the OECD indicator of employment protection legislation (EPL) on capital and skill composition? Precisely, this study investigates the effects of changes in EPL on changes in four types of capital and three components of labour skill. They include construction, non-ICT, ICT, and R&D capital components on the one hand, and low-, medium-, and highly-skilled labour on the other. Our analysis is grounded on a large country–industry panel dataset of fourteen OECD countries, and eighteen manufacturing and market service industries, from 1988 to 2007. It shows that strengthening EPL lowers ICT capital and, even more severely, R&D capital relative to non-ICT and construction capital; it also brings down low-skilled relative to highly-skilled workers’ employment. These results suggest that structural reforms for more labour flexibility could have a favourable impact on firms’ R&D investment and hiring of low-skilled workers.

scholarly journals Importance of Employment Protection and Types of Employment Contracts for Elasticity of Employment in the OECD Countries

2014 ◽  
Vol 17 (1) ◽  
pp. 21-44
Author(s):  
Eugeniusz Kwiatkowski ◽  
Przemysław Włodarczyk
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Oecd Countries ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Real Wages ◽  
Market Institutions ◽  
Employment Contracts ◽  
Protection Legislation ◽  
The Impact

This article presents the impact of the global crisis on employment in the OECD countries, and in particular is an attempt to explain why the impact is of a different scope in particular countries. Particular attention has been paid to the question of the role played by labour market institutions (such as employment protection legislation and fixed-term employment). The global economic crisis has influenced the situation in the labour markets of OECD countries, causing declines in employment and increases in unemployment. Changes in the level of employment in individual countries varied. Between 2007-2012 declines in production took place in the majority of OECD countries. Declines in real wages were also observed in those countries. On the other hand, in the period of 2005-2012 relatively small changes in labour market institutions occurred. With respect to both the stringency of employment protection legislation, as well as the share of fixed-term employment, there were no clearly visible trends in the data during the period of economic crisis. The econometric verification of theoretical hypotheses was performed using annual data from the 2005-2012 period for 26 OECD countries, and it shows that GDP and real wages were statistically significant determinants of employment size in the analyzed period. The study also confirmed the hypothesis of the existence of a non-linear (U-shaped) relationship between employment elasticity with respect to GDP and the level of stringency of employment protection legislation, as well as the share of fixed-term employment in the total number of employment contracts. The results show that the smallest declines in employment during a crisis might be expected in countries where the level of EPL is close to 2, and the share of fixed-term employment in the total number of employment contracts is close to 18%.

scholarly journals Complementarities between Labour Market Institutions and their Causal Impact on Youth Labour Market Outcomes

2020 ◽  
Vol 20 (3) ◽  
Author(s):  
Niall O’Higgins ◽  
Giovanni Pica
Keyword(s):  
Labour Market ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Policy Reforms ◽  
Market Institutions ◽  
Market Outcomes ◽  
Labour Market Institutions ◽  
Protection Legislation ◽  
Labour Market Outcomes ◽  
The Impact

AbstractWe analyse theoretically and empirically the effects on young people’s labour market outcomes of two specific labour market institutions and their interaction: employment protection legislation and active labour market policy. The paper examines recent policy reforms in Italy focussing on the impact of the 2012 Fornero reforms of employment protection legislation as well as the initial impact of the EU-wide Youth Guarantee scheme introduced in Italy in March 2014. The paper then examines how these two policy reforms interacted. The analysis first confirms the finding that the Fornero reform increased permanent hires particularly amongst the very youngest workers; it then goes on to find that the YG was indeed successful in increasing the hires of young people, although this operated through a statistically significant increase in female hires on temporary contracts. Third, it finds some evidence of a dampening effect of the YG on EPL reforms as predicted by theory.

The Impact of Migratory Flows on the Swiss Labour Market. A Comparison Between In- and Outflow

2016 ◽  
Vol 13 (3) ◽  
pp. 411-426 ◽  
Author(s):  
Philippe Wanner ◽  
Jonathan Zufferey ◽  
Juliette Fioretta
Keyword(s):  
Economic Growth ◽  
Labour Market ◽  
Skilled Workers ◽  
Industrial Countries ◽  
Rapid Economic Growth ◽  
Wide Range ◽  
Highly Skilled ◽  
Working Age ◽  
Post Industrial ◽  
The Impact

International labour migration in post-industrial countries raises numerous questions. A wide range of studies have been published on the impact of immigration on the labour market but only few studies take into account both arrivals (immigrations) and departures (emigrations), rather than only the role of newcomers on the labour market. This paper is based on a Swiss Longitudinal Demographic Database which links data from Population and Household Registers, administrative registers, and surveys. In particular, the Swiss Population Register provides the date of arrival or departure of immigrants/emigrants while the Structural Survey provides information on their characteristics and position on the labour market. Based on these data, this paper compares the socioeconomic characteristics of both immigrants and emigrants arrived in Switzerland during the period 2011-2013 or having left the country during the same period, a time span  characterized by a yearly net migration of + 80,000 and a rapid economic growth. In terms of level of education, every category is characterized by a positive migration balance, which is not surprising: the economic growth observed in Switzerland during the period led to a demand on the labour market for both skilled and unskilled migrants. More precisely, migratory flows counterbalanced the erosion of the low and averagely skilled working-age non-migrating population and contributed to approximately one third of the increase in the number of highly skilled workers in the labour market. Concerning the occupations, the impact of the migration balance is highest among managers and sales workers. The paper also demonstrates that the migratory flows contribute to balance the decrease in the low and averagely skilled positions and to partially fulfil the economy’s demand for highly skilled workers.

Cumulative (Dis)advantage? The Impact of Labour Market Policies on Late Career Employment from a Life Course Perspective

2014 ◽  
Vol 44 (2) ◽  
pp. 213-233 ◽  
Author(s):  
JENNY BENNETT ◽  
KATJA MÖHRING
Keyword(s):  
Labour Market ◽  
Early Retirement ◽  
Research Question ◽  
Life Course Perspective ◽  
Employment Protection ◽  
Central Research ◽  
Employment Protection Legislation ◽  
Older Individuals ◽  
Protection Legislation ◽  
The Impact

AbstractWe investigate the labour market situation of older individuals in Europe in relation to their previous employment history as well as the regulations relating to employment protection legislation and early retirement. Specifically, we look at the competing risks of early retirement and late career unemployment. The central research question is whether policy effects differ according to the characteristics of an individual's previous work history. We employ data for twelve European countries from the Survey of Health, Ageing and Retirement in Europe (SHARELIFE) and estimate multilevel regression models. The results show different mechanisms for the risks of unemployment and early retirement. Late career unemployment results from individual factors related to fragmented careers, marginal employment and short tenures. In the case of early retirement, we find the interplay of individual and policy factors to be crucial. Persons with consistent careers have an increased probability of early retirement, but only in countries with generous early retirement benefits. However, employment protection legislation appears to counteract early retirement for this group of individuals. We conclude that policy factors do not have uniform effects for older individuals, but should rather be viewed against the background of previous developments in individual career paths.

scholarly journals HOW DO NEW EU MEMBER STATES COMPLY WITH THE FLEXICURITY CONCEPT?

Ekonomika ◽  
2012 ◽  
Vol 91 (4) ◽  
Author(s):  
Suzana Laporšek ◽  
Primož Dolenc
Keyword(s):  
Labour Market ◽  
Lifelong Learning ◽  
Social Protection ◽  
Labour Productivity ◽  
Employment Protection ◽  
Eu Member States ◽  
Active Labour ◽  
Protection Legislation ◽  
The Impact

Abstract. The paper analyses the state of implementation of flexicurity policy components in the NMS and, by using panel regression analysis, estimates the impact of employment protection legislation, expenditures for active employment policies, participation in lifelong learning and net replacement rate on labour productivity and on long-term unemployment. The empirical analysis has shown that the labour markets in the NMS, on the overall, are not more rigid as compared to the EU-15; however, problematic remains low expenditure on active labour market policies, education and social protection, and the low participation in lifelong learning. NMS must, according to the results of the panel linear regression, improve their performance in the mentioned areas in order to improve their labour productivity and decrease long-term unemployment.Key words: flexicurity, labour market, labour productivity, long-term unemployment, European Union

The Effects of Employment Protection legislationon Personnel Policies: A Review of Theoretical Modelsand Empirical results

2014 ◽  
pp. 126-140
Author(s):  
O. Mironenko
Keyword(s):  
Personnel Selection ◽  
Selection Criteria ◽  
Theoretical Models ◽  
Employment Protection ◽  
Empirical Results ◽  
Protection Legislation ◽  
Labour Contracts ◽  
Hiring And Firing ◽  
The Impact ◽  
Personnel Policies

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.

Employers and migration in low‐skilled services in Dublin

2012 ◽  
Vol 34 (6) ◽  
pp. 628-641 ◽  
Author(s):  
Siobhán Rachel McPhee
Keyword(s):  
Labour Market ◽  
State Policies ◽  
Service Industries ◽  
Immigration Policies ◽  
Structured Interviews ◽  
Celtic Tiger ◽  
Content Type ◽  
Migrant Labour ◽  
The Creation ◽  
The Impact

PurposeThe purpose of this paper is to analyse the role of employers as “institutional” factors in the creation of segmentation in the labour market. Industrial structure defines segments of the labour market (the employer) based on the nature of demand, and with the impact on the individual workers or groups based on their personal characteristics.Design/methodology/approachEmpirical work is within the Dublin labour market, which experienced the largest increase in availability of migrant workers under immigration policies of the Celtic Tiger state. Focused on the sectors of catering, cleaning and security as low‐skilled service sector providers, the analysis is based on 24 semi‐structured interviews with employers selected based on a database of a cross‐section of all employers in the selected sectors in Dublin.FindingsSemi‐structured interviews reinforce state policies as key institutional factor underlying migrant labour trends and experiences, but perspectives of the employers in low‐end service industries reveal additional insights. In addition to using migrant labour as a means of cost cutting, the daily actions of employers reveal cultural stereotyping of workers, making them an elemental component “exploiting” the trends facilitated by state immigration policies.Originality/valueAlthough a large body of research on migration into Ireland during the Celtic Tiger years is available, little of it has focused on labour market processes. More broadly, in attempting to understand labour market processes and the creation of segmentation there needs to be a triangulation of processes of supply, demand and state policies; and employers are key players in shaping demand and exploiting supply trends.

Abbau von Inflexibilitäten auf dem Arbeitsmarkt – Ist die Wirtschaftspolitik auf dem richtigen Weg?

2000 ◽  
Vol 1 (2) ◽  
pp. 229-250
Author(s):  
Norbert Berthold
Keyword(s):  
Welfare State ◽  
Labour Market ◽  
Employment Protection ◽  
Economic Environment ◽  
Economic Damage ◽  
Coalition Government ◽  
The Public ◽  
Protection Legislation ◽  
Generous Welfare ◽  
The Welfare State

Abstract The situation on the German labour market is still a catastrophe. The institutional set-ups on the labour market and the welfare state obviously no longer fit the fundamentally changed economic environment. There is next to no competition on the labour market and unions and employers' associations use the generous welfare state to transfer the burden of adjustment to changes in the economic environment onto the public at large. Institutional mismatch is prevalent. The red-green coalition government has not only realized that persistently high unemployment inflicts tremendous economic damage but that it is also politically destabilizing. It has therefore announced that the performance on the labour market during its term of office shall be its own measure of success or failure. This paper discusses whether the regulatory steps taken by the red-green coalition government, like implementing stricter employment protection legislation, reintroducing full pay when sick, and changing the law concerning low-paid jobs, are suitable for reducing this institutional mismatch.

scholarly journals Residential choices of foreign highly skilled workers in the Netherlands and the role of neighbourhood and urban regional characteristics

Urban Studies ◽  
2017 ◽  
Vol 56 (4) ◽  
pp. 760-777 ◽  
Author(s):  
Pascal Beckers ◽  
Sanne Boschman
Keyword(s):  
The Netherlands ◽  
Labour Market ◽  
Negative Binomial ◽  
Living Environment ◽  
Regional Level ◽  
Negative Binomial Regression Model ◽  
Skilled Workers ◽  
Location Choices ◽  
Neighbourhood Level ◽  
Highly Skilled

In the international competition for talent, local and national policy makers are keen to better understand the location choices of highly skilled workers in order to design more effective policies geared towards the group’s attraction and retention. In this study, we explain whether and to what extent the local living environment, in particular characteristics at the neighbourhood and urban regional level, affect the residential choices of foreign highly skilled workers. We make use of register data from Statistics Netherlands on the residential locations of all of these migrants who entered the Netherlands between 2000 and 2009. We combine this dataset with data on relevant characteristics at the neighbourhood level as well as with relevant amenities and labour market characteristics at the regional level. We estimate a negative binomial regression model to test which characteristics of neighbourhoods and urban regions are associated with high inflows of foreign highly skilled workers at the neighbourhood level. We find that, besides labour market characteristics, the characteristics of the local environment do matter for location choices of foreign highly skilled workers in the Netherlands. This group tends to settle in higher income, inner city neighbourhoods that offer a high degree of urban vibe. Furthermore, residential choices differ between single and multi-person households and change with duration of stay in the country.

scholarly journals All precarious? Institutional change and turning points in labour market trajectories in Spain

2017 ◽  
Vol 39 (3) ◽  
pp. 408-422 ◽  
Author(s):  
Martí López Andreu
Keyword(s):  
Public Sector ◽  
Labour Market ◽  
Working Conditions ◽  
Career Paths ◽  
Social Inequalities ◽  
Employment Protection ◽  
Content Type ◽  
Working Lives ◽  
The Impact ◽  
Work And Employment

Purpose The purpose of this paper is to explore the effects of changes in employment regulation in Spain on individual labour market trajectories. It is well known that the Spanish labour market has been strongly hit by the 2007 recession. Furthermore, after 2010 and in the benchmark of “austerity”, several reforms were implemented to further flexibilise employment regulation. At the same time, public sector budgets suffered severe cutbacks, that impacted working conditions and prospects of public sector workers. These reforms were implemented by different governments and substantially changed previous existing patterns of employment. This paper explains how these reforms have reinforced previous existing trends towards greater flexibility and weaker employment protection and how they lead to a shift in the position of work in society. Design/methodology/approach The emerging patterns that these changes provoked are illustrated thorough data from narrative biographies of workers affected by a job loss or a downgrading of working conditions. The workers of the sample had relatively stable positions and careers and were affected by changes that substantially modified their paths. Findings The paper shows how reforms have expanded work and employment insecurities and have broken career paths. It demonstrates how the reforms have weakened the position of work and organised labour in society and how, when institutional supports are jeopardised, the capacity to plan and act is harassed by the traditional social inequalities. Originality/value The paper enhances the knowledge about the impact of institutional changes by analysing their effects in individual working lives by means of narrative biographies.

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