A microsimulation model to measure the impact of the economic crisis on household income

2016 ◽  
Vol 37 (3) ◽  
pp. 474-493
Author(s):  
Tindara Addabbo ◽  
Rosa María García-Fernández ◽  
Carmen María Llorca-Rodríguez ◽  
Anna Maccagnan
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Household Income ◽  
Labour Force ◽  
Living Conditions ◽  
Social Implications ◽  
Economic Shocks ◽  
Economic Cycle ◽  
Content Type ◽  
The Impact

Purpose – The current economic crisis has significantly increased unemployment, showing higher persistence than expected. However, since microdata from household surveys are issued with delay, they do not allow a prompt analysis of the impact of the economic cycle on households’ living conditions. The purpose of this paper is to propose a microsimulation methodology to achieve an evaluation of the impact of economic shocks in terms of household’s living conditions to guide policy makers. Design/methodology/approach – The microsimulation technique developed in this paper is based on a nowcasting approach by using different sources of data and by taking into account a whole set of potential transitions across the different statuses of the labour market and the related changes in income. To validate this microsimulation method, the authors apply it to Italy, a country that has been deeply affected by the crisis. Findings – Data have been drawn from the European Statistics on Income and Living Conditions Survey for Italy (IT SILC) and from the Labour Force Survey for Italy. The latter data allow us to take into account the changes in the labour market status of individuals due to economic shocks. The validation results support the capability of the model to simulate the effect of the cycle before actual data on income are available. Social implications – The results obtained would encourage the use of the suggested methodology to anticipate the effect of the economic cycle on household’s income therefore enabling the design of effective policies to sustain household income with positive practical and social implications. Originality/value – Distinct from other microsimulation techniques the methodology proposed in this paper allows us to take into account behavioural effects and the change in the composition of employment and unemployment. Moreover, the authors contribute to the existing literature by considering a whole set of transitions across different labour market statuses and the related changes in income.

Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany

2018 ◽  
Author(s):  
Gerhard Bosch ◽  
Thorsten Kalina
Keyword(s):  
Income Inequality ◽  
Labour Market ◽  
Economic Crisis ◽  
Household Income ◽  
Wage Bargaining ◽  
Living Standards ◽  
Social Model ◽  
Real Wages ◽  
The Impact ◽  
Over Time

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period

scholarly journals Women’s participations in economic and NGO activities in Bangladesh

2016 ◽  
Vol 36 (7/8) ◽  
pp. 491-515 ◽  
Author(s):  
Hafiz T.A. Khan ◽  
Twyeafur Rahman
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Labour Force ◽  
Wealth Index ◽  
Labour Force Participation ◽  
Demographic And Health Surveys ◽  
Economic Activities ◽  
Data Set ◽  
Content Type ◽  
Number Of Children

Purpose – The purpose of this paper is to examine key factors affecting the economic involvement of women in Bangladesh and women’s involvement with non-governmental organisations (NGOs) particularly in microcredit operating in that country. Design/methodology/approach – The study uses nationally representative data set. Quantitative analysis was utilised to explore data contained in the Bangladesh Demographic and Health Surveys 2007 and 2011. Findings – The findings indicate that age, marital status, number of children living in the household, place of residence, geographical location, education, partner’s education and the wealth index are important factors in enabling women’s involvement in economic activities. In other words, the key findings emerged from the study are first, the low level of women’s economic activities in Bangladesh with a majority involved in farming, agriculture and poultry; second, those women involved in the labour market generally tended to come from poor backgrounds, have very little education, live in the Northwest geographical region and have a large family living in the same house; and finally, age, currently married, having a higher number of children, living in rural areas, from the Northwest region with almost no education and belonging to the poor wealth index quintile are found to be associated more with NGO activities in Bangladesh. Social implications – The findings indicate there are potential barriers that are preventing Bangladeshi women from engaging in the labour market that could reinforce the case for reshaping the government’s labour policies. The study reveals that the recent economic crisis has no significant impact on the women labour force participation as well their involvement in NGO activities in Bangladesh. It is generally understood that enhancing women’s economic participation and NGO activities has a positive impact at family, community and country levels. The study concludes that investing in women, particularly in creating employment opportunities including NGO sectors can help the country as a safeguard even during the economic crisis. It is anticipated that the findings will help policy-makers in enhancing female labour force participation as well as encouraging them to engage in NGO activities in Bangladesh. Originality/value – The research paper is original in terms of conceptual framework, research design and statistical analysis.

The real losers during times of economic crisis: evidence of the Korean gender pay gap

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Louise Patterson ◽  
Vic Benuyenah
Keyword(s):  
Global Health ◽  
Labour Market ◽  
Economic Crisis ◽  
Gender Gap ◽  
General Trend ◽  
Pay Gap ◽  
Average Growth ◽  
Health Crisis ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to gain a better understanding of the employment figures in the labour market after the two Korean financial crises (1997 and 2008), focusing on the gender gap across different characteristics. Based on several data points, a general trend becomes evident whereby, as companies retrenched, they shifted the demographics of their employees to those perceived as most valuable, i.e. workers with university educations. However, when distinguished by gender, it is evident that their priorities changed. This discovery suggests that as the world faces another global health crisis (COVID-19) with its associated impact on organisational retrenchment, the gender gap in Korea could widen further.Design/methodology/approachThe analysis was conducted by applying a simple compounded average growth rate (CAGR) analysis to determine the impact of the two crises on employment by the educational level.FindingsA general trend becomes evident whereby, as companies retrenched, they shifted the demographics of their employees to those perceived as most valuable, i.e. workers with university educations. However, when distinguished by gender, it is evident that their priorities changed.Research limitations/implicationsSecondary data were used for the analysis as data for unemployed, who had given up looking for work, were not available.Practical implicationsManagers can use the findings when making decisions about laying-off staff during times of financial/economic crisis.Social implicationsThere is a perceived negative impact upon highly educated Korean women.Originality/valueThe paper advances the pay gap literature by providing evidence from Korea. CAGR analysis has never been used previously in analysing the pattern of labour market data to reveal gender discrimination. With a global health crisis (COVID-19) with its associated impact on organisational retrenchment, the gender gap in Korea could widen further.

scholarly journals Economic crisis, unemployment and illegal drug consumption in Spain

2020 ◽  
Vol 28 (83) ◽  
pp. 153-170
Author(s):  
Bruno Casal ◽  
Berta Rivera ◽  
Luis Currais
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Drug Users ◽  
Estimation Method ◽  
Drug Consumption ◽  
Differential Association ◽  
Current Crisis ◽  
Content Type ◽  
Economic Context ◽  
The Impact

Purpose The purpose of this paper is to analyse the association between drug consumption and unemployment. This paper also studies the differential association between these variables in both the pre- and current-crisis periods. The results are compared in an attempt to verify that the population of users is more vulnerable in terms of how likely they are to get and hold down a job in the labour market. Design/methodology/approach Matching methods and microdata from the Survey on Alcohol and Drugs in Spain, EDADES are used. The use of these methods on the estimates carried out prove to be particularly effective in reducing treatment-selection bias. The authors’ interest is also to analyse the differential association between the interest variables in both the pre- and current-crisis periods. For this purpose, the authors also use the differences-in-differences (DID) estimation method between the two periods to check if the impact of drug use on unemployment depends on the economic context. The estimations are compared in an attempt to verify that the population of users is less likely to attain and hold down a job in the labour market than non-drug users. Findings The results obtained in the current study are consistent with the hypothesis that drug use decreases an individual’s capacity and availability when he or she is trying to enter the labour market. In both 2007 and 2013, drug users were more likely to be unemployed, regardless of the type of drug. Differences in the probability of being unemployed intensify during an economic crisis. In light of these results, it is possible to conclude that the negative effect of drug consumption on an individual’s employability is increased during periods of economic recession. Research limitations/implications The study presented here has some limitations. Firstly, cross-sectional data were used to examine the causal relationship between consumption and employment. In this sense, the results are susceptible to bias. The unavailability of longitudinal data on the same individual made it impossible for the researchers to consider periods of abstinence, the duration of periods of consumption and how this consumption affected an individual’s productivity and his or her working situation. Another limitation is that certain relevant unemployment variables may have been omitted. Among the variables that affect an individual’s labour participation is the existence of sources of income as an alternative to market salaries. With state subsidies, income from illegal activities and money sent by family or friends, an individual may decide not to work. This problem could be mitigated if omitted variables operate in a similar way throughout both of the periods examined. Social implications Given the results obtained in this paper, the authors believe that public policy conclusions should be mainly concerned with the importance of implementing proactive employment policies, along with family support programmes and a greater role for primary care among the people with the highest risks of exclusion. Health treatment should go jointly with measures that make it easier for individuals to enter the workforce. These steps would only be possible with an improved level of education and more complete professional profiles, to increase motivation when individuals seek employment. Originality/value This study could make various contributions to the existing body of evidence. In the authors’ knowledge, this is the first attempt to document the effect of the economic crisis on the employability of the drug-using population in contrast with the general population. Moreover, a methodology is presented that provides an alternative to those used in earlier studies, in terms of reducing treatment-selection bias. At the same time, the use of a DID estimation method between pre- and current-crisis periods allow us to check if the impact of drugs consumption on unemployment depends on the economic context.

scholarly journals Are we working less? An examination of changing UK labour supply decisions since the 1990s

2020 ◽  
Vol 48 (1) ◽  
pp. 35-61
Author(s):  
Paul S. Jones ◽  
Muhammad Ali Nasir
Keyword(s):  
Financial Crisis ◽  
Labour Market ◽  
Labour Supply ◽  
Global Financial Crisis ◽  
Labour Force ◽  
Social Implications ◽  
Employment Policy ◽  
Hours Worked ◽  
Content Type ◽  
The Uk

PurposeThis purpose of the study is to examine the labour supply decisions with respect to earnings and considers whether we are willing or indeed able to work less. The authors specifically focus on the three points of time, i.e. beginning of the sample, pre and post Global Financial Crisis.Design/methodology/approachThe study regression analysis by utilises microdata from the UK Labour Force Survey (LFS) regarding individual hours worked in three separate survey periods: 1994q2, 2007q2 and 2015q2FindingsThe results suggest that we are far from income-satiated. The elasticity of hours worked with respect to earnings is stubbornly inelastic and for some demographic cohorts positive, implying the desire to work more. The authors find that job flexibility matters in facilitating reduced hours of work, but that jobs are not becoming more flexible. The authors also do see a secular reduction in hours worked, accompanied by a shift to working later in life, but these appear to be down to factors other than higher wages.Research limitations/implicationsThe study has important research implications in terms of understanding the dynamics of the labour market on the whole and in the pre and post global financial crisis periods.Practical implicationsThe research has profound policy implication in terms of labour and employment policy.Social implicationsThere are important social implications, particularly in terms of household labour supply decisions and substitution between work and leisure.Originality/valueThe study has significant element of originality in terms of understanding the changing dynamics of labour market. This is the first study which has investigated the labour market in the light of empirical evidence and in the various time periods.

Sustaining corporate culture in a world of hybrid work

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Buell Hirsch
Keyword(s):  
Corporate Culture ◽  
Current Literature ◽  
Design Methodology ◽  
White Collar ◽  
Subjective Assessment ◽  
Social Implications ◽  
Content Type ◽  
The Subject ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to examine the challenges to sustaining corporate culture in a world of hybrid working. Design/methodology/approach This paper is a review of current literature on the impact of remote and hybrid working on white-collar employees. Findings There is little consensus on whether remote/hybrid working will harm or strengthen corporate culture. Research limitations/implications The viewpoint is a subjective assessment of a limited number of articles on the subject Practical implications It is not entirely clear how those responsible for corporate culture can act on the findings. Social implications In a world in which corporations are experiencing a shortage of talent, how they handle corporate culture will be increasingly important. Originality/value While much has been written on the impact of remote working, this viewpoint takes the original view that strong corporate cultures rely more on the attitudes and actions of individual employees that company programs or initiatives.

Community of practice: converting IT graduate students into specialists via professional knowledge sharing

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liana Stanca ◽  
Dan-Cristian Dabija ◽  
Elena Păcurar
Keyword(s):  
Cluster Analysis ◽  
Knowledge Transfer ◽  
Learning Styles ◽  
Labour Market ◽  
Community Of Practice ◽  
Labour Force ◽  
Emerging Market ◽  
Professional Knowledge ◽  
Content Type ◽  
Learning Framework

Purpose The paper aims to highlight how an applied learning framework or “community of practice” (CoP) combined with a traditional theoretical course of study enables the identification of teaching-learning processes which facilitate knowledge transfer from practitioners to graduate information technology (IT) students for quicker integration in the labour market. Design/methodology/approach CoPs are identified based on cluster analysis according to Kolb’s Learning Style Inventory (1984), with data obtained through a survey. Empirical research is applied to the CoP developed within a non-formal learning framework, principal new actors being IT specialists linked to graduate IT students and teachers on a traditional university course. Graduate IT students can gain knowledge of the ideal employee and the social and emotional skills needed to integrate with the IT labour market. Findings The K-Means algorithm helps to identify clusters of graduate IT students displaying necessary knowledge acceptance behaviour to convert them into specialists. The results of the cluster analysis show different learning styles of the labour force, providing an overview of candidate selection methods and the knowledge, skills and attitudes expected by users. Research limitations/implications Although the research adds value to the existing literature on learning styles and the knowledge and core skills needed by IT specialists, it was limited to an emerging market. Originality/value The study provides a preliminary overview of graduate IT students’ attitudes from an emerging market to the re-engineering of academic learning contexts to facilitate professional knowledge transfer, converting them into IT practitioners and integrating them in the labour market of an emerging economy.

Macroeconomic determinants of trade openness: empirical investigation of SAARC region

2018 ◽  
Vol 12 (2) ◽  
pp. 151-161 ◽  
Author(s):  
Muhammad Tahir ◽  
SAF Hasnu ◽  
Mario Ruiz Estrada
Keyword(s):  
Regional Cooperation ◽  
Labour Force ◽  
Trade Openness ◽  
Least Square Method ◽  
Least Square ◽  
Content Type ◽  
Currency Exchange ◽  
Long Run ◽  
Macroeconomic Determinants ◽  
The Impact

Purpose Trade openness plays a significant role in the growth process of countries. The purpose of this paper is to examine the impact of macroeconomic determinants on the trade openness of countries. Design/methodology/approach The study focuses on the South Asian Association for Regional Cooperation (SAARC) member countries and the data used were from 1971 to 2011. Panel data econometrics techniques and two stages least square method (TSLS) are used to carry out empirical analysis and robustness testing. Findings The main finding of the paper is that macroeconomic determinants such as investment both in physical and human capital and per capita gross domestic product (GDP) positively affect trade openness. Further, the size of labour force and currency exchange rate has also impacted trade openness negatively and significantly. Practical implications It implies that efficient macroeconomic management matters for higher trade openness. The sampled developing countries are suggested to pay favourable attention to macroeconomic variables if they want to grow in the long run through outward-oriented policies. Originality/value This paper is an original contribution in the context of SAARC countries by focusing on the relationship between macroeconomic determinants and trade openness.

The effect of partner buffering on the risk of unemployment in Finland

2018 ◽  
Vol 38 (11/12) ◽  
pp. 982-1007
Author(s):  
Oxana Krutova ◽  
Pertti Koistinen ◽  
Tapio Nummi
Keyword(s):  
Sociological Theory ◽  
Labour Force ◽  
Multilevel Modelling ◽  
Employment Protection ◽  
Active Labour Market Policy ◽  
Content Type ◽  
Dual Earner ◽  
Partner Effect ◽  
Unemployment Risk ◽  
The Impact

PurposeThe purpose of this paper is to outline the study to determine whether the dual earner model better offsets the actual risk of unemployment compared to other household models.Design/methodology/approachThe authors linked the partner effect (household type) with macroeconomic institutional settings, such as employment protection, the active labour market policy, economic growth rate and globalisation, to study how these micro- and macro-level factors influence the unemployment risk of individuals.FindingsUsing European Labour Force Survey (EU-LFS) microdata for Finland from 2005 to 2013 and a multilevel modelling technique, the authors found that the partner effect is an important regulator of unemployment risks, but the effect is modified by institutional factors. Dual earners and breadwinners experience a less significant effect from employment protection legislation regulation and other external factors on the increase or decrease in unemployment risk compared to singles. The authors also found that unemployed singles are more exposed and vulnerable to fluctuations caused by economic events.Originality/valueIn this way, this paper contributes to the sociological theory of labour markets and a better understanding of how different household types buffer and mediate the risks of unemployment. The authors used the EU-LFS and novel multilevel analysis statistical solutions to determine the impact of macro- and micro-level factors. The case of Finland may also be of broader interest to researchers and policy-makers because of the long and strong tradition of the dual earner employment pattern and strong macro-economic fluctuations.

The impact of within-country and within-firm factors on Japanese foreign subsidiary performance during economic crisis

2017 ◽  
Vol 9 (3) ◽  
pp. 190-205 ◽  
Author(s):  
Matheus Baldo Cordeiro ◽  
Mario Henrique Ogasavara ◽  
Gilmar Masiero
Keyword(s):  
Economic Crisis ◽  
Fixed Effects ◽  
Multinational Firms ◽  
Negative Impact ◽  
Foreign Subsidiaries ◽  
Productivity Measurement ◽  
Subsidiary Performance ◽  
Content Type ◽  
Subsidiary Management ◽  
The Impact

Purpose The purpose of this paper is to analyze the relevant aspects that influence foreign subsidiary’s performance and remain how they retain competitiveness in international markets during economic crisis. To investigate this effect, this research analyzes the behavior of Japanese subsidiaries located in European countries during the pre- and post-crisis periods that started in the USA in 2008 and spread all over the world. Design/methodology/approach This is a quantitative study with an analysis based on longitudinal data of foreign subsidiaries of Japanese multinational firms during the period 2006-2013. It applies a multiple linear regression with panel data using fixed effects models. Findings The findings show that within-firm factors related to local experiential knowledge, market entry through joint ventures with partners from the same nationality, and subsidiary management with a team of expatriates all have a positive impact on subsidiary performance during times of economic crisis. Moreover, within-country factors involving macroeconomic aspects related to inflation rate and population income indicators show a negative impact on performance. Finally, the results confirm that subsidiary performance is higher in the pre-crisis period, showing the importance of considering economic crisis aspects in longitudinal studies. Practical implications The result has implications for managers of multinational firms to understand which factors most impact the success of their foreign subsidiaries during times of economic crisis. In this way, managers can, with greater confidence, decide to reach the most important performance indicator in subsidiary management. Originality/value The majority of studies on economic crisis is based on an economic perspective and mostly investigates Asian and Argentinean crises. When considering a firm-level perspective, most research studies conducted on a subsidiary level are cross-sectional or use survival as a measure of performance. This paper applies a longitudinal study using subsidiary-level data and analyzes performance by sales and productivity measurement. In addition, it investigates whether or not within-country and within-firm factors impacted subsidiary performance during the 2008 economic crisis.

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