Does income shock affect informal employment? Evidence from Russia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olivia Hye Kim
Keyword(s):  
Labor Market ◽  
Business Cycles ◽  
Minimum Wage ◽  
Informal Employment ◽  
Income Shocks ◽  
Cross Sectional ◽  
Content Type ◽  
Data Limitations ◽  
Income Shock ◽  
Wage Cuts

PurposeThe purpose of this study is to examine whether participating informality is attributed to income shocks such as wage arrears, unexpected wage cuts or compulsory unpaid leaves. The current research uses Russia longitudinal Monitoring Survey 2002–2015.Design/methodology/approachUsing formal jobs as the base category, the authors conducted pooled multinomial logit regressions allowing for the two additional employment statuses: workers without contracts and unincorporated business workers.FindingsThe overall results mainly suggest that no effects occur. In other words, unexpected negative income shocks are not the main driving force of informality. Although the majority of previous studies are based on survey questions on unexpected income shock which has sample selection bias, to obtain robustness, the current study used Russian minimum wage reforms as income shocks. This research shows that Russian minimum wage reform does not affect the decision of informality in the labor market.Research limitations/implicationsGiven the data limitations, the authors only observed and examined the supply-side of the labor market. Tax-evading motives would be the main reason for informality; to ensure this conjecture, however, demand and supply sides need to be simultaneously examined which is beyond the scope of this study.Originality/valueIn contrast to a large number of studies on cross-sectional differences in determinants of informal job holding, emphasis on the effects of income shocks on informal employment across business cycles has been minimal. The current study focuses on the business cycles because trends of informal employment can be interpreted differently regardless of whether in an economic boom or recession. Russia, as a unique natural experiment, provides us to examine informal job holdings over the business cycle.

The gender gap in work–life balance satisfaction across occupations

2019 ◽  
Vol 34 (5) ◽  
pp. 398-428 ◽  
Author(s):  
Maryam Dilmaghani ◽  
Vurain Tabvuma
Keyword(s):  
Gender Gap ◽  
Large Scale ◽  
General Social Survey ◽  
Work Life ◽  
Work Life Balance ◽  
Cross Sectional ◽  
Life Balance ◽  
Content Type ◽  
Policy Context ◽  
Data Limitations

Purpose The purpose of this study is to compare the gender gaps in work–life balance satisfaction across occupations. Due to data limitations, the studies of work–life balance satisfaction have generally relied on researcher collected data. As a result, large-scale studies encompassing all occupations in the same social and policy context are rare. In several cycles of the Canadian General Social Survey, the respondents are directly asked about their work–life balance (WLB) satisfaction. The present paper takes advantage of this unique opportunity to compare the gender gap in WLB satisfaction across occupations in Canada. Design/methodology/approach This paper pools four cross-sectional datasets (N = 37,335). Multivariate regression analysis is used. Findings Women in management and education are found to have a lower WLB satisfaction than their male counterparts. Conversely, and rather surprisingly, a WLB satisfaction advantage is found for women in transport over males in this occupation. Further investigation shows that the female WLB advantage in transport is driven by the relatively low WLB satisfaction of males in this occupation, while the opposite is true for education. Social implications The findings are discussed in light of the WLB policies and their increasing gender-blindness. Originality/value This paper is the first large-scale study which compares the gender gap in WLB satisfaction across occupations, in a given policy context.

Safety net for agriculture: effect of idiosyncratic income shock on remittance payments

2017 ◽  
Vol 44 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Eric Akobeng
Keyword(s):  
Empirical Test ◽  
Safety Net ◽  
Ordinary Least Squares ◽  
Least Square ◽  
Income Shocks ◽  
Data Set ◽  
Content Type ◽  
Income Shock ◽  
Remittance Flows ◽  
Female Headed Households

Purpose The purpose of this paper is to examine the effect of illness-driven agriculture income shocks on remittance payments in Ghana using a nationally representative household pseudo-panel data set for 1991/1992, 1998/1999 and 2005/2006. Design/methodology/approach The two-stage least square instrumental variable technique is used. This is compared with the ordinary least squares estimator. Findings The author finds that households in Ghana use remittances to protect themselves from negative agriculture income shocks. The study further reveals that the protection is resilient in female-headed households. Research limitations/implications The question of remittances as a safety net mechanism is interesting, but the limitation is the challenges involving the counterfactual setup in studying the effects of endogenous migration choices. Practical implications The study provides that, as far as microeconomic factors are concerned, remittances increase in times of negative agriculture income shocks attributed to illness in Ghana. Social implications The finding points to the fact that remittance payments play an essential role as an informal safety net during illness-driven agriculture income shock especially for female-headed households in Ghana. This has an important implication for poverty reduction in Ghana. Originality/value It provides an empirical test of the claim that remittance flows buffer idiosyncratic shock with micro-level household data that incorporates both internal and international remittances. The paper introduces gender dimension into idiosyncratic shocks’ impact. Also, the data set makes it possible to provide a reliable set of agriculture income shock estimates.

scholarly journals Depressive Symptoms among Chinese Informal Employees in the Digital Era

2021 ◽  
Vol 18 (10) ◽  
pp. 5211
Author(s):  
Yang Cai ◽  
Weiwei Kong ◽  
Yongsheng Lian ◽  
Xiangxin Jin
Keyword(s):  
Mental Health ◽  
Labor Market ◽  
Depressive Symptoms ◽  
Rapid Development ◽  
Informal Employment ◽  
Probit Regression ◽  
Cross Sectional ◽  
Data Set ◽  
Digital Era ◽  
The Impact

The mental health status of informal employees is rarely studied in China. Nowadays, new economic forms such as gig economy and platform economy are emerging with the rapid development of information and communication technology, which has brought great changes to the labor market, especially to the informal employment field. Thus, it is of great significance to investigate the depressive symptoms among informal employees in the digital era. Based on the cross-sectional data of CFPS (China Family Panel Studies, 2018), this study takes a quantitative analysis framework to explore and analyze the association between informal employment and depressive symptoms in the Chinese labor market. After screening, a data set of 8893 employees (60.5% male and 39.5% female) was established. Several statistical methods, including the Mann–Whitney test and probit regression model, were used in the sample data analysis. The results show that the prevalence of depressive symptoms among informal employees is significantly higher than that among formal employees. Depressive symptoms are highly related to informal work and other factors, such as education, physical health, household income, etc. The impact of Internet use on informal employees’ depressive symptoms is not significant. The mental health inequality between formal and informal employees still exists in the digital era, and corresponding labor market regulations and social policies should be perfected to address this issue.

Natives’ skills and attitudes towards immigrants: evidence from 20 OECD countries

2019 ◽  
Vol 41 (4) ◽  
pp. 457-471
Author(s):  
Seong Hee Kim
Keyword(s):  
Labor Market ◽  
Market Competition ◽  
Oecd Countries ◽  
Individual Characteristics ◽  
Content Type ◽  
Attitudes Toward Immigrants ◽  
Skilled Immigrants ◽  
Age Cohorts ◽  
Data Limitations ◽  
Age Cohort

Purpose The purpose of this paper is to examine whether natives’ attitudes toward immigration is associated with an influx of high- and low-skilled immigrants. The current research focuses on selected 20 OECD countries as destination countries. Design/methodology/approach A pseudo-panel based on age cohort is constructed to control for the potential unobservable individual characteristics. The random effects and within estimators (where applicable) are applied in the panel-data setting. Findings Regression results indicate that natives’ attitudes depend on their labor market exposure and skill type. Low-skill immigrant inflows are negatively associated with natives’ attitudes, but the magnitude is reduced proportionally to their share of the high skilled. The association between immigrant flows and attitudes is particularly strong for the prime-age cohorts, which can be explained by the labor market competition mechanism. Research limitations/implications Given the data limitations, not all destination countries could be analyzed but only selected OECD countries. However, this situation has resulted in the sample destination countries sharing similar characteristics with advanced economies. Originality/value Although the majority of previous studies are based on survey questions on attitudes toward immigrants with respective skill type, the current study focuses on the effects of the actual immigration flows. Natives’ attitudes respond sensitively to the actual changes in the number of migrants. The selection of OECD countries makes the characteristics of the destination countries substantially homogeneous.

scholarly journals Remittances and informal work

2016 ◽  
Vol 37 (7) ◽  
pp. 1172-1190 ◽  
Author(s):  
Artjoms Ivlevs
Keyword(s):  
Labour Market ◽  
Transition Economies ◽  
Informal Employment ◽  
Future Research ◽  
Market Outcomes ◽  
Cross Sectional ◽  
Informal Work ◽  
Content Type ◽  
Labour Market Outcomes ◽  
Migrant Households

Purpose The purpose of this paper is to explore the effect of remittances on informal employment in the migrants’ countries of origin, looking both at the remittance-receiving and non-migrant households. Design/methodology/approach Using data from a large survey conducted in six transition economies of Eastern Europe and Central Asia, the determinants of three labour market outcomes – not working, working formally and working informally – are estimated in a multinomial probit model. The endogeneity of remittances is dealt with instrumental variables following the two-stage residual inclusion technique. To assess possible impact of remittances on non-migrant households, conditional correlations between the labour market outcomes of non-migrant households and the region-level share of remittance receivers are obtained. Findings Both correlational and instrumental variable analyses suggest that that receiving remittances increases the likelihood of working informally. At the regional level, high prevalence of remittances is associated with a higher likelihood of informal work among the non-migrant households. Migration and remittances may thus be contributing to informal employment in migration-sending countries. Research limitations/implications The empirical analysis is based on cross-sectional data, which do not allow isolating the effects of unobserved respondent heterogeneity. To deal with this issue, future research could use panel data. Originality/value The study explicitly considers the effects of remittances on formal and informal employment of remittances receivers as well as people who do not receive remittances. It advances the understanding of what drives informality in developing and transition economies.

Does the Russian Government Pay a "Fair" Wage: Review of Studies

2015 ◽  
pp. 62-85 ◽  
Author(s):  
T. Zhuravleva
Keyword(s):  
Labor Market ◽  
Public Sector ◽  
Private Sector ◽  
Wage Differentials ◽  
Omitted Variables ◽  
Russian Government ◽  
Correct Evaluation ◽  
Self Selection ◽  
Data Limitations ◽  
Fair Wage

This paper surveys the literature on public-private sector wage differentials for Russian labor market. We give an overview of the main results and problems of the existing research. The authors unanimously confirm that in Russia private sector workers receive higher wages relative to their public sector counterparts. According to different estimates the "premium" varies between 7 and 40%. A correct evaluation of this "premium" is subject to debate and is a particular case of a more general econometric problem of wage differentials estimation. The main difficulties are related to data limitations, self-selection and omitted variables. Reasons for the existence of a stable private sector "premium" in Russia are not fully investigated.

Financial distress determinants among SMEs: empirical evidence from Sweden

2020 ◽  
Vol 47 (3) ◽  
pp. 547-560 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Financial Crisis ◽  
Financial Distress ◽  
Large Scale ◽  
Global Financial Crisis ◽  
Binary Logistic Regression ◽  
Data Availability ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
The Global Financial Crisis

PurposeThe purpose of this study is to empirically investigate determinants of financial distress among small and medium-sized enterprises (SMEs) during the global financial crisis and post-crisis periods.Design/methodology/approachSeveral statistical methods, including multiple binary logistic regression, were used to analyse a longitudinal cross-sectional panel data set of 3,865 Swedish SMEs operating in five industries over the 2008–2015 period.FindingsThe results suggest that financial distress is influenced by macroeconomic conditions (i.e. the global financial crisis) and, in particular, by various firm-specific characteristics (i.e. performance, financial leverage and financial distress in previous year). However, firm size and industry affiliation have no significant relationship with financial distress.Research limitationsDue to data availability, this study is limited to a sample of Swedish SMEs in five industries covering eight years. Further research could examine the generalizability of these findings by investigating other firms operating in other industries and other countries.Originality/valueThis study is the first to examine determinants of financial distress among SMEs operating in Sweden using data from a large-scale longitudinal cross-sectional database.

Categorization flexibility and unconventional choices: is life an adventure?

2020 ◽  
Vol 54 (8) ◽  
pp. 1963-1986
Author(s):  
Tilottama G. Chowdhury ◽  
Feisal Murshed
Keyword(s):  
Interactive Effect ◽  
Interactive Effects ◽  
Cognitive Capacity ◽  
Purchase Behavior ◽  
Consumer Decision Making ◽  
Cross Sectional ◽  
Content Type ◽  
Cross Domain ◽  
Multiple Domains

Purpose This paper proposes that categorization flexibility, operationalized as the cognitive capacity that cross-categorizes products in multiple situational categories across multiple domains, might favorably influence a consumer’s evaluation of unconventional options. Design/methodology/approach Experimental research design is used to test the theory. An exploratory study first establishes the effect of categorization flexibility in a non-food domain. Study 1 documents the moderating role of decision domain, showing that the effect works only under low- (vs high-) consequence domain. Studies 2A and 2B further refine the notion by showing that individuals can be primed in a relatively higher categorization flexibility frame of mind. Study 3 demonstrates the interactive effect of categorization flexibility and adventure priming in a high-consequence domain. Study 4 integrates the interactive effects of decisions with low- vs high-consequence, adventure priming and categorization flexibility within a single decision domain of high consequence. Findings Consumers with higher- (vs lower-) categorization flexibility tend to opt for unconventional choices when the decision domain entails low consequences, whereas such a result does not hold under decision domain of high consequences. The categorization flexibility effects in case of low-consequence decision domain holds true even when consumers are primed to be categorization flexible. Furthermore, with additional adventure priming, consumers show an increased preference for unconventional options even under a decision domain with high consequence. Research limitations/implications This study could not examine real purchase behavior as results are based on cross-sectional, behavioral intention data. In addition, it did not examine the underlying reason for presence of cross-domain categorization flexibility index. Practical implications The results suggest that stimuli may be tailored to consumers in ways that increase the salience and the perceived attractiveness of unconventional choices. Further, data reinforce the notion of cross-categorical interrelations among different domains, which could be leveraged by marketers. Originality/value This study represents the first documentation of the potential ways by which unconventional product choice might be a function of individuals’ categorization flexibility level across different types of decision domains. The findings yield implications that are novel to both categorization and consumer decision-making literature.

Engaging leadership in the job demands-resources model

2015 ◽  
Vol 20 (5) ◽  
pp. 446-463 ◽  
Author(s):  
Wilmar B. Schaufeli
Keyword(s):  
Structural Equation ◽  
Work Performance ◽  
Online Survey ◽  
Job Demands ◽  
Well Being ◽  
Organizational Outcomes ◽  
Job Resources ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type

Purpose – The purpose of this paper is to integrate leadership into the job demands-resources (JD-R) model. Based on self-determination theory, it was argued that engaging leaders who inspire, strengthen, and connect their followers would reduce employee’s levels of burnout and increase their levels of work engagement. Design/methodology/approach – An online survey was conducted among a representative sample of the Dutch workforce (n=1,213) and the research model was tested using structural equation modeling. Findings – It appeared that leadership only had an indirect effect on burnout and engagement – via job demands and job resources – but not a direct effect. Moreover, leadership also had a direct relationship with organizational outcomes such as employability, performance, and commitment. Research limitations/implications – The study used a cross-sectional design and all variables were based on self-reports. Hence, results should be replicated in a longitudinal study and using more objective measures (e.g. for work performance). Practical implications – Since engaged leaders, who inspire, strengthen, and connect their followers, provide a work context in which employees thrive, organizations are well advised to promote engaging leadership. Social implications – Leadership seems to be a crucial factor which has an indirect impact – via job demands and job resources – on employee well-being. Originality/value – The study demonstrates that engaging leadership can be integrated into the JD-R framework.

Social media engagement, service complexity, and experiential quality in US hospitals

2020 ◽  
Vol 34 (6) ◽  
pp. 833-845 ◽  
Author(s):  
Youngsu Lee ◽  
Joonhwan In ◽  
Seung Jun Lee
Keyword(s):  
Social Media ◽  
Demographic Data ◽  
Positive Association ◽  
Customer Engagement ◽  
Service Firms ◽  
Multiple Sources ◽  
Cross Sectional ◽  
Content Type ◽  
Social Media Engagement ◽  
Experiential Quality

Purpose As social media platforms become increasingly popular among service firms, many US hospitals have been using social media as a means to improve their patients’ experiences. However, little research has explored the implications of social media use within a hospital context. The purpose of this paper is to investigate a hospital’s customer engagement through social media and its association with customers’ experiential quality. Also, this study examines the role of a hospital’s service characteristics, which could shape the nature of the interactions between patients and the hospital. Design/methodology/approach Data from 669 hospitals with complete experiential quality and demographic data were collected from multiple sources of secondary data, including the rankings of social media friendly hospitals, the Hospital Compare database, the Center for Medicare and Medicaid (CMS) cost report, the CMS impact file, the Healthcare Information and Management Systems Society Analytics database and the Dartmouth Atlas of Health Care. Specifically, the authors designed the instrumental variable estimate to address the endogeneity issue. Findings The empirical results suggest a positive association between a hospital’s social media engagement and experiential quality. For hospitals with a high level of service sophistication, the association between online engagement and experiential quality becomes more salient. For hospitals offering various services, offline engagement is a critical predictor of experiential quality. Research limitations/implications A hospital with more complex services should make efforts to engage customers through social media for better patient experiences. The sample is selected from databases in the US, and the databases are cross-sectional in nature. Practical implications Not all hospitals may be better off improving the patient experience by engaging customers through social media. Therefore, practitioners should exercise caution in applying the study’s results to other contexts and in making causal inferences. Originality/value The current study delineates customer engagement through social media into online and offline customer engagement. This study is based on the theory of customer engagement and reflects the development of mobile technology. Moreover, this research may be considered as pioneering in that it considers the key characteristics of a hospital’s service operations (i.e., service complexity) when discovering the link between customers’ engagement through a hospital’s social media and experiential quality.

Sign in / Sign up

Export Citation Format

Share Document