The employer response to the guaranteed annual income

2018 ◽  
Vol 18 (2) ◽  
pp. 493-517 ◽  
Author(s):  
David Calnitsky

Abstract How do firms react when the whole labor force has access to a guaranteed income? One view argues that the guaranteed income is an employer subsidy, facilitating low wages and a ‘low-road’ industrial strategy. The second view suggests that in providing an alternative to work, the guaranteed income tightens labor markets and pulls wages up. This article examines the impact of an understudied social experiment from the late 1970s called the Manitoba Basic Annual Income Experiment, or Mincome. This research focuses on Mincome’s ‘saturation’ site, the town of Dauphin, Manitoba, where all residents were eligible for unconditional payments. Using an archived survey of local firms that inquires into wage rates, applications, hiring, and work hours, I find support for the second view. I close by examining the mechanisms behind the employer subsidy argument and considering the conditions under which a variety of income-support policies might increase or decrease wages, and more broadly, foster compromise or conflict in the labor market.

Author(s):  
Mirela Cristea ◽  
Gratiela Georgiana Noja ◽  
Petru Stefea ◽  
Adrian Lucian Sala

Population aging and public health expenditure mainly dedicated to older dependent persons present major challenges for the European Union (EU) Member States, with profound implications for their economies and labor markets. Sustainable economic development relies on a well-balanced workforce of young and older people. As this balance shifts in favor of older people, productivity tends to suffer, on the one hand, and the older group demands more from health services, on the other hand. These requisites tend to manifest differently within developed and developing EU countries. This research aimed to assess population aging impacts on labor market coordinates (employment rate, labor productivity), in the framework of several health dimensions (namely, health government expenditure, hospital services, healthy life years, perceived health) and other economic and social factors. The analytical approach consisted of applying structural equation models, Gaussian graphical models, and macroeconometric models (robust regression and panel corrected standard errors) to EU panel data for the years 1995–2017. The results show significant dissimilarities between developed and developing EU countries, suggesting the need for specific policies and strategies for the labor market integration of older people, jointly with public health expenditure, with implications for EU labor market performance.


1998 ◽  
Vol 22 (3) ◽  
pp. 257-285 ◽  
Author(s):  
George R. Boyer

Historians have long acknowledged that London, because of its enormous size and rapidly growing demand for labor, acted as a powerful magnet for migrants from throughout southern England. However, while there is a large literature documenting the flow of migrants to London, there have been surprisingly few attempts to determine the consequences of this migration for southern labor markets. This article attempts to redress the imbalance in the literature by examining the influence of London on agricultural labor markets during the nineteenth century. In particular, the article examines the effect of distance from London on wage rates in southern England at various points in time, and the effect of labor market conditions in London on short-run changes in agricultural wage rates.


2020 ◽  
pp. 75-89
Author(s):  
Alex J. Wood

This chapter traces the historical evolution of working time and internal labor markets in the United Kingdom. The term “internal labor market” refers to the shielding of employment relations from the external labor market through mechanisms such as seniority policies, employment protections, internal promotion ladders, and differentiated job structures based on skill and knowledge development. The chapter then looks at the temporal organization of labor at PartnershipCo. It considers wage rates and pay structure, employment protections, mobility, and promotion opportunities, but finds that flexible scheduling is the most significant means of securing control. Flexible scheduling was found to be highly manager-controlled, even when institutionalized working time regulations were present.


Author(s):  
David Calnitsky ◽  
Pilar Gonalons-Pons

Abstract Would unconditional cash payments reduce crime and violence? This paper examines data on crime and violence in the context of an understudied social experiment from the late 1970s called the Manitoba Basic Annual Income Experiment, or Mincome. We combine town-level crime statistics for all medium-sized Canadian Prairie towns with town-level socio-demographic data from the census to study how an experimental guaranteed income affected both violent crime and total crime. We find a significant negative relationship between Mincome and both outcomes. We also decompose total crime and analyze its main components, property crime and “other” crime, and find a significant negative relationship between Mincome and property crime. While the impact on property crime is theoretically straightforward, we close by speculating on the mechanisms that might link the availability of guaranteed annual income payments to a decline in violence, focusing on the mechanisms that shape patterns of inter-partner violence.


2020 ◽  
Vol 102 (1) ◽  
pp. 79-97 ◽  
Author(s):  
Susanne Prantl ◽  
Alexandra Spitz-Oener

After the fall of the Berlin Wall on November 9, 1989, and the collapse of the German Democratic Republic, a sudden, unexpected, and massive influx of East German migrants hit the entire West German labor market. The context is well suited for investigating whether immigration influences natives' wages and how the effects depend on product and labor market conditions. We propose direct measures of potential migration with exogenous variation, compare migrants to natives with similar capabilities, and segment the labor market along predetermined margins. We find that immigration can have negative effects on the wages of natives. These effects surface when product and labor markets are competitive but not under regulations that restrict the entry of firms and provide workers with a strong influence on firms' decision making.


Author(s):  
Vasiliy Svistunov ◽  
Valeriya Konovalova ◽  
Vitaliy Lobachyev

The article is devoted to the assessment of the impact of modern digital technologies on the world and Russian labor market. The relevance of the chosen problem is explained by the fact that the achieved level of digital development of society has a signifi cant impact on the size of labor markets, the qualifi cation composition of workers, the demand for certain professions. The article presents the results of the analysis of the impact of digital technology on the growth of Russia’s GDP, the contribution of individual factors of growth in value added of diff erent sectors of the economy, including the sectoral dimension, the dynamics of digital technologies across regions of the country. The article presents the results of studies characterizing new trends in the labor market, formed as a response to the increasingly active penetration of the digital economy in the socioeconomic sphere of society.


ILR Review ◽  
1997 ◽  
Vol 51 (1) ◽  
pp. 64-81 ◽  
Author(s):  
Susan L. Ettner ◽  
Richard G. Frank ◽  
Ronald C. Kessler

Analyzing data on 2,225 men and 2,401 women from the National Comorbidity Survey, the authors examine the impact of psychiatric disorders on employment and, among those employed, work hours and income. They find that psychiatric disorders significantly reduced employment among both men and women. They also find evidence of small reductions in the conditional work hours of men and a substantial drop in the conditional income of men and women, although these findings are somewhat sensitive to the estimation methods and specification of the model.


Author(s):  
Olga Pryazhnikova ◽  

The review examines the implications of the impact of the COVID-19 pandemic on the labor markets of ASEAN countries. Shows that measures to contain the spread of COVID-19, taken by the governments of the alliance countries, such as lockdowns and isolation, have led to a decrease in economic activity and in employment. Notes that the most vulnerable groups in the labor market of the ASEAN countries in the context of the crisis provoked by COVID-19 are labor migrants and persons employed in the informal sector of the economy.


2021 ◽  
Vol 82 (2) ◽  
pp. 36-44
Author(s):  
S. Bespalyy ◽  

Main problem: In the 18th century, when industrial production began, the use of steam and mechanized production caused major changes in the economy. As a result, production costs decreased along with an increase in the quantity and quality of products. During this period, production underwent a revolutionary transition from manual labor to mechanization. The potential impact of Industry 4.0 on labor markets remains an under-explored scientific field. It is estimated that Industry 4.0 will lead to unemployment by changing the employment structure and will bring new structural problems in terms of unemployment and labor relations. Purpose: The purpose of the study was to establish the impact of Industry 4.0 on the labor market and identify the consequences of the impact. Methods: studied, the evolution of production development, when mass production with electricity led to the Age of Industry 2.0, and then the emergence of the digital revolution, the use of electronics and information technology in production processes, marked the beginning of the Age of Industry 3.0. It is expected, according to international experts, scientists, that automation and robotic production will have a serious impact on the unskilled workforce and cause a critical reduction in the labor force of vulnerable sectors of society, that is, women, migrants, youth and the elderly. Results and their significance: This study assessed the possible impact of the fourth industrial revolution on labor markets. Through a literature review and analysis of emerging trends in Industry 4.0, the risks, opportunities and challenges of the process are explored in a comparative perspective. It has been established that countries must correctly perceive the transformation of labor markets and take appropriate measures. Otherwise, the applied labor-based low-cost industrialization model will lose its comparative advantage.


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