Hope for the best and prepare for the worst. Do short-time work schemes help workers remain in the same firm?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José M. Arranz ◽  
Carlos García-Serrano ◽  
Virginia Hernanz
Keyword(s):  
Labour Market ◽  
Empirical Literature ◽  
Firm Level ◽  
Content Type ◽  
The Future ◽  
Time Work ◽  
Market Status ◽  
Short Time ◽  
The Impact ◽  
Labour Market Status

PurposeThis paper investigates whether short-time work (STW) schemes were successful in their objective of maintaining employment and keeping workers employed within the same firms after the onset of the financial and economic crisis in 2008.Design/methodology/approachSpanish longitudinal administrative data has been used, making it possible to identify short-time work (STW) participation not only of workers but also of employers and allowing to know the future labour market status of participants and non-participants. Accordingly, treatment and control groups are defined, and Propensity Score Matching models estimated. The dependent variable is measured as the probability that an individual remained employed with the same employer in the future (one, two and three years) after implementation of a STW arrangement.FindingsOur results suggest that treated individuals are about 5 percentage points less likely to remain working with the same employer one year later than similar workers, and this negative effect of participation increases over time. Thus, STW schemes would not have the assumed effect of preventing unemployment by keeping the participants employed relative to non-participants.Research limitations/implicationsAs our analysis is based on the comparison of the employment trajectories of participant and non-participant workers in firms that have used STW arrangements, our findings cannot be interpreted as the job saving effects of either macro or micro studies carried out previously.Practical implicationsThe analysis carried out in the paper is complementary to the country-level and firm-level approaches that have been used in the empirical literature.Originality/valueWe adopt a worker-level approach. This is novel since no previous study has focused attention on the impact of STW participation on the subsequent labour market status of workers.

What matters for the future? Comparing Globe's future orientation with Hofstede's long-term orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Alipour
Keyword(s):  
Future Orientation ◽  
Cash Holdings ◽  
Two Dimensions ◽  
Empirical Literature ◽  
Temporal Orientation ◽  
Firm Level ◽  
Content Type ◽  
The Future ◽  
The Impact

PurposeThis paper aims to compare the future orientation (FO) society practices dimension of the Globe model with Hofstede's long-term orientation (LTO) by testing their causal effects on three firm-level variables: cash holdings, long-term investments and acquisitions. In doing so, this research challenges the already taken-for-granted assumption in the empirical research that the two dimensions are equivalent.Design/methodology/approachHierarchical linear modeling (HLM) was used to test the hypotheses on 7,065 firms across 49 countries between 2000 and 2017.FindingsThe findings show that the causal impacts of FO society practices and LTO on a given construct are not consistent. Although LTO increases cash holdings, the impact of FO society practices on this variable is insignificant. Additionally, unlike FO society practices, which significantly increases long-term investments and acquisitions, LTO does not influence long-term investments and decreases acquisitions.Originality/valueThis study is valuable since it addresses the confusion surrounding the similarities and differences between FO society practices and LTO. Despite the dissimilarity also emphasized by Globe, Hofstede claims that they are equivalent, and the great majority of the empirical literature has assumed them to be equivalent in their analyses. Addressing this confusion, this research provides further empirical evidence that these two dimensions are dissimilar. The additional important contribution of the study is theorizing and examining the impact of FO society practices and LTO on the firm-level outcomes that reflect their temporal orientation (i.e. long-term investments and acquisitions), which is surprisingly neglected in the literature.

Social capital, labour market status and wages: some evidence from Spain

2020 ◽  
Vol 47 (4) ◽  
pp. 539-560
Author(s):  
Antonio Caparrós Ruiz
Keyword(s):  
Social Capital ◽  
Labour Market ◽  
Social Participation ◽  
Job Search ◽  
Sample Selection ◽  
Multinomial Logit Model ◽  
Content Type ◽  
The Social ◽  
Market Status ◽  
Labour Market Status

PurposeThis article analyses the social capital's influence on the Spanish labour market. In particular, this study examines to what extent the social capital increases the likelihood of being employed, taking into account different labour market status, and diverse dimensions of the social capital. Focusing on wage earners, it is also analysed whether network structures in Spain influence on the wage earnings.Design/methodology/approachThe methodology applied to analyse the labour market status is a multinomial logit model. For the analysis of wages, it is specified a wage model with sample selection bias. In both cases, social capital indicators are included as regressors.FindingsThe results show that social participation exerts a positive influence on the probability of being self-employed, and lowers the likelihood of being unemployed. Moreover, it is verified that the interaction with family members or close friends influence positively on wages.Research limitations/implicationsFurther research should emphasise how employers assess the workers' competences associated with the social capital.Practical implicationsThe findings provide knowledge to policymakers useful to increase the role of social participation in the labour market.Social implicationsThe importance of social network as an instrument for the job search must be enhanced.Originality/valueThis article overcomes some drawbacks associated with the analysis of social capital from an aggregate perspective. Furthermore, social capital indicators are obtained using the Categorical Principal Components Analysis (CATPCA), which is unprecedented in the economic literature.

scholarly journals Automation, AI and the Future of Work in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anita Hammer ◽  
Suparna Karmakar
Keyword(s):  
Labour Market ◽  
Informal Economy ◽  
State Policy ◽  
New Technologies ◽  
National Strategy ◽  
Content Type ◽  
Future Of Work ◽  
The Future ◽  
The Impact ◽  
Work And Employment

PurposeThis research contributes to current debates on automation and the future of work, a much-hyped but under researched area, in emerging economies through a particular focus on India. It assesses the national strategy on artificial intelligence and explores the impact of automation on the Indian labour market, work and employment to inform policy.Design/methodology/approachThe article critically assesses the National Strategy on AI, promulgated by NITI Aayog (a national policy think tank), supported by the government of India and top industry associations, through a sectoral analysis. The key dimensions of the national strategy are examined against scholarship on the political economy of work in India to better understand the possible impact of automation on work.FindingsThe study shows that technology is not free from the wider dynamics that surround the world of work. The adoption of new technologies is likely to occur in niches in the manufacturing and services sectors, while its impact on employment and the labour market more broadly, and in addressing societal inequalities will be limited. The national strategy, however, does not take into account the nature of capital accumulation and structural inequalities that stem from a large informal economy and surplus labour context with limited upskilling opportunities. This raises doubts about the effectiveness of the current policy.Research limitations/implicationsThe critical assessment of new technologies and work has two implications: first, it underscores the need for situated analyses of social and material relations of work in formulating and assessing strategies and policies; second, it highlights the necessity of qualitative workplace studies that examine the relationship between technology and the future of work.Practical implicationsThe article assesses an influential state policy in a key aspect of future of work–automation.Social implicationsThe policy assessed in this study would have significant social and economic outcomes for labour, work and employment in India. The study highlights the limitations of the state policy in addressing key labour market dimensions and work and employment relations in its formulation and implementation.Originality/valueThis study is the first to examine the impact of automation on work and employment in India. It provides a critical intervention in current debates on future of work from the point of view of an important emerging economy defined by labour surplus and a large informal economy.

scholarly journals The impact of government financial assistance on the performance and financing of Australian SMEs

2017 ◽  
Vol 30 (4) ◽  
pp. 447-464 ◽  
Author(s):  
Dong Xiang ◽  
Andrew C. Worthington
Keyword(s):  
Financial Assistance ◽  
Federal State ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Goods And Services ◽  
Control Factors ◽  
The Future ◽  
Direct Government ◽  
The Impact

Purpose This paper aims to examine the impact of government financial assistance provided to Australian small and medium-sized enterprises (SMEs). Design/methodology/approach This study uses firm-level panel data on more than 2,000 SMEs over a five-year period from the Business Longitudinal Database compiled by the Australian Bureau of Statistics. The authors measure the impact of government financial assistance in terms of subsequent SME performance (income from sales of goods and services and profitability) and changes in the availability of alternative nongovernment finance. Findings The authors find government financial assistance helps SMEs improve performance over and above the effects of conventional financing. They also find than the implicit guarantee effect signalled by a firm receiving government financial assistance suggests firms are more likely to obtain nongovernment finance in the future. Control factors that significantly affect SME performance and finance availability include business size, the level of innovation, business objectives and industry. Research limitations/implications Nearly all of the responses in the original survey data are qualitative, so we are unable to assess how the strength of these relationships varies by the levels of assistance, income and profitability. The measure of government financial assistance of the authors is also general in that it includes grants, subsidies and rebates from any Australian Government organisation, so we are unable to comment on the impact of individual federal, state or local government programmes. Practical implications Government financial assistance helps SMEs improve both immediate and future performance as measured by income and profitability. This could be because government financial assistance quickly overcomes the financial constraints endemic in SMEs. Government financial assistance also helps SMEs obtain nongovernment finance in the future. The authors conjecture that this is because it overcomes some of the information opaqueness of SMEs. Originality/value Few studies focus on the impact of direct government financial assistance compared with indirect assistance as typical in credit guarantee schemes. The authors use a very large and detailed data set on Australian SMEs to undertake the analysis.

The impact of training on firm outcomes: longitudinal evidence from Canada

2019 ◽  
Vol 41 (2) ◽  
pp. 117-131
Author(s):  
Stéphane Renaud ◽  
Lucie Morin
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Voluntary Turnover ◽  
Empirical Literature ◽  
Reverse Causality ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Firm Outcomes ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of three training indicators, namely offer, participation and cost, on three firm outcomes, namely voluntary turnover, firm performance and profit. Design/methodology/approach The empirical analysis is carried out using firm-level data sourced from a Canadian national data set. In total, data from 5,237 for-profits firms with ten employees or more were analyzed longitudinally over eight years. Results were generated by XTREG fixed effect longitudinal analyses between the three variables of training, voluntary turnover, firm performance and profit. Findings Training offer, operationalized as the number of different formal training programs offered annually by an employer, significantly decreases voluntary turnover while it significantly increases performance and profit. Training participation, operationalized as the percentage of employees receiving training per year, has a significant positive impact on voluntary turnover. Training cost, operationalized as the annual cost of training per employee, has no impact on the three firm outcomes. Practical implications Among the various human resource practices a firm can use to strengthen its human capital, training can have a significant impact of its own. Investing in a diversified training offer brings value to a firm by decreasing employee voluntary turnover while increasing firm performance and profit. Originality/value This research contributes to the strategic impact of organizational training, demonstrating the impact of training on key organizational outcomes over time. Further, this paper contributes to the empirical literature by making a distinction between voluntary and involuntary turnover. Last, even though this study does not entirely addresses the problem of possible reverse causality, using longitudinal objective data, this study addresses several limits of past research at the macro-level of analysis.

THE IMPACT OF SOCIAL HOUSING ON THE LABOUR MARKET STATUS OF THE DISABLED

2013 ◽  
Vol 22 (9) ◽  
pp. 1124-1138
Author(s):  
Stéphane Gregoir ◽  
Tristan-Pierre Maury
Keyword(s):  
Labour Market ◽  
Social Housing ◽  
The Disabled ◽  
Market Status ◽  
The Impact ◽  
Labour Market Status

scholarly journals The impact of the COVID-19 pandemic on the employment situation and financial well-being of families with children in Austria: Evidence from the first ten months of the crisis

2021 ◽  
Author(s):  
Nadia Steiber ◽  
Christina Siegert ◽  
Stefan Vogtenhuber
Keyword(s):  
Labour Market ◽  
Well Being ◽  
Government Support ◽  
Financial Difficulties ◽  
Childless Women ◽  
Employment Situation ◽  
Time Work ◽  
Families With Children ◽  
Short Time ◽  
The Impact

Objective: This study investigates the impact of the COVID-19 pandemic on the employment situation of parents and in turn on the subjective financial well-being of families with children in Austria. Background: The pandemic had strong repercussions on the Austrian labour market. The short-time work (STW) programme covered a third of employees in the first half of 2020 and helped to maintain employment levels. We provide evidence on how an unprecedented labour market crisis of this sort and in particular the exceptionally wide use of STW had affected the (gendered) employment situation of parents and the financial well-being of different types of families. Method: The study draws on representative panel survey data that cover 905 families with underage children. The data include information on the employment situation and financial well-being of single and cohabiting parents before the onset of the crisis, three months and ten months after its onset. Results: In contrast to other countries, mothers were not more strongly affected by the labour market crisis of 2020 than childless women or fathers. About a third of couples with underage children experienced income losses. Despite the wide use of STW and government support to families, the share of families in financial difficulties has substantially increased, especially among those with many children and single parents, many of who were at risk of poverty already before the crisis. Conclusion: Substantial shares of dual-earner families that had low poverty risks before the crisis were in financial difficulties in 2020. Potential spill-over effects of financial shocks on children are discussed.

Transition out of self-employment – evidence from Poland

2016 ◽  
Vol 43 (12) ◽  
pp. 1254-1270 ◽  
Author(s):  
Magdalena Rokicka
Keyword(s):  
Labour Market ◽  
Multinomial Logistic Regression ◽  
Family Characteristics ◽  
Alternative Form ◽  
Men And Women ◽  
Content Type ◽  
Self Employment ◽  
Market Status ◽  
Policy Incentives ◽  
Labour Market Status

Purpose The purpose of this paper is to address the issue of self-employment exit in Poland and its determinants. Design/methodology/approach The author examines the outflow from self-employment into different labour market status: employment, unemployment, inactivity using multinomial logistic regression. The analysis is conducted separately for men and women using Polish Labour Force Surveys (LFS) (2001-2007). Findings Results indicate that personal and family characteristics have different impact on self-employment exit for men and women. However, unfavourable macroeconomic conditions have similar impact regardless gender. The author’s results show that higher local unemployment rate reduces the likelihood of self-employment exit into employment, while conducting business in a sector affected by economic downturn increase outflow from self-employment for both men and women. Research limitations/implications Certain limitations of the study arise from the design of the Polish LFS. It is a rotating panel with relatively few time periods, so it can only allow the author to analyse the outcomes in short-term perspectives. Practical implications Those results provide some background for potential policy interventions. In the context of persistent, high unemployment rates in Poland, there is need for some policy incentives which reinforce self-employment – an important alternative form of the labour market participation. Originality/value Majority of previous studies focusses on self-employment creation, as policy incentives do. However, very little is known about the reasons for leaving self-employment. The author fills this gap analysing the outflow and transition from self-employment to different labour market status.

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