How does the minimum wage affect employment statuses of youths?: evidence of Indonesia

2016 ◽  
Vol 43 (2) ◽  
pp. 259-274
Author(s):  
Devanto Shasta Pratomo
Keyword(s):  
Labour Market ◽  
Minimum Wage ◽  
Rural Areas ◽  
Employment Status ◽  
Labour Force ◽  
Youth Employment ◽  
Displacement Effect ◽  
Content Type ◽  
Paid Employment ◽  
Youth Labour Market

Purpose – The purpose of this paper is to examine the effects of minimum wage on youth employment across employment statuses in Indonesia. This study uses the National Labour Force Survey (Sakernas) from 2010 to 2012. Design/methodology/approach – This study uses a multinomial logit model to see the youth distribution across different employment status changes as a result of an increase in the minimum wage. Five categories of youth employment statuses are examined including self-employed; unpaid family workers; paid employees in the covered sector; paid employees in the uncovered sectors; and unemployed. The model is examined separately for urban and rural areas, as well as for the male and female youth labour market. Findings – The results generally suggest that an increase in minimum wage decrease the probability of youth being employed in the covered sector, i.e. paid employment in the covered sector and increase the probability of youth being employed in the uncovered sectors, including self-employed, unpaid family workers, and paid employment in the uncovered sectors. This study indicates a displacement effect for youths from the covered sector into the uncovered sector as suggested by the two-sector model. The specific results are different across urban and rural labour markets, as well as across males and females. Originality/value – Compared to the developed country studies, the studies on the effects of minimum wage on youth employment in developing countries is relatively limited. The sample from Indonesian labour market with a large informal sector has never been used for these purposes. This study also contributes to the literature by using the particular definition of the covered-uncovered sector to the Indonesian labour market based on the employment status and individual wage data.

The effect of immigration on natives’ task specialisation: the case of Germany

2019 ◽  
Vol 40 (5) ◽  
pp. 939-957 ◽  
Author(s):  
Raquel Sebastian ◽  
Magdalena Ulceluse
Keyword(s):  
Labour Market ◽  
Language Proficiency ◽  
Labour Force ◽  
Institutional Context ◽  
Labour Markets ◽  
Displacement Effect ◽  
Content Type ◽  
European Working ◽  
Task Reallocation ◽  
Manual Tasks

Purpose The purpose of this paper is to analyse the effect of an increase in the relative supply of immigrants on natives’ task reallocation, with a focus on Germany. Specifically, it investigates whether natives, as a response to increased immigration, re-specialise in communication-intensive occupations, where they arguably have a comparative advantage due to language proficiency. Design/methodology/approach The analysis uses regional data from the German Labour Force Survey between 2002 and 2014. To derive data on job tasks requirements, it employs the US Department of Labor’s O*NET database, the results of which are tested through a sensitivity analysis using the European Working Condition Survey and the Programme for the International Assessment of Adult Competencies data sets. Findings The paper finds that indeed German workers respond to increasing immigration by shifting their task supply and providing more communication relative to manual tasks. Importantly, the decrease in the supply of communication tasks is stronger and more robust than the increase in the supply of manual tasks, pointing to a potential displacement effect taking place between natives and immigrants, alongside task reallocation. This would suggest that countries with relatively more rigid labour markets are less responsive to immigration shocks. Moreover, it suggests that labour market rigidity can minimise the gains from immigration and exacerbate employment effects. Originality/value The paper not only investigates task reallocation as a result of immigration in a different institutional context and labour market functioning, but the results feed into broader policy and scholarly discussions on the effects of immigration, including questions about how the institutional context affects labour market adjustment to immigration, worker occupational mobility in a more rigid labour markets and the fine balance needed between flexibility and rigidity.

Gender inequalities in the initial labour market experience of young Europeans

2019 ◽  
Vol 40 (3) ◽  
pp. 379-397 ◽  
Author(s):  
Gabriella Berloffa ◽  
Eleonora Matteazzi ◽  
Alina Şandor ◽  
Paola Villa
Keyword(s):  
Young People ◽  
Labour Market ◽  
Employment Status ◽  
Individual Characteristics ◽  
Second Phase ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
Content Type ◽  
Youth Labour Market ◽  
Market Experience

Purpose The purpose of this paper is to investigate gender differences in employment status trajectories of young Europeans during their initial labour market experience, and the way in which they are affected by some labour market institutions. Design/methodology/approach The empirical analysis is based on EU-SILC longitudinal data (waves 2006–2012), and focusses on young people aged 16–34. Monthly information on self-declared employment statuses for 36 months is used to define “employment status trajectories”. Young people are observed in two different phases: the first three years after leaving education (first phase) and a three-year window, starting around four years after the end of education (2nd phase). Multinomial logit models are used to estimate the probability of following different trajectory types as a function of individual characteristics, macroeconomic conditions and institutional indicators. Findings Results show that, in the first phase, women and men face on average the same difficulties in entering the labour market. When controlling for the presence of children, non-mothers have higher chances than men to enter rapidly and successfully into the labour market, whereas young mothers have the same chances. In contrast, in the second phase women experience more fragmented pathways than men, even if they do not have children. A less stringent regulation on dismissals of employees with regular contracts could enhance women’s employment opportunities in the school-to-work transition, but it would have detrimental effects for both men and women in the subsequent years. On the contrary, a more stringent regulation on the use of temporary contracts would have beneficial effects for women, with no adverse effects for men. Originality/value The paper contributes to the literature in several ways. First, it takes a broader perspective on youth labour market integration by considering two phases of individuals’ initial working life. Second, it combines an explicit attention to the first “significant” employment experience with a focus on individual trajectories, by adopting a new method to group trajectories. Third, it shows how the effects of labour market institutions vary by gender, highlighting the importance of considering gender-specific consequences when discussing or adopting labour market reforms.

scholarly journals MAIN DETERMINANTS OF YOUTH LABOUR MARKET IN SELECTED SEE COUNTRIES AND THE CASE OF MACEDONIA

2018 ◽  
Vol 1 (16) ◽  
pp. 79
Author(s):  
Predrag Trpeski ◽  
Marijana Cvetanoska
Keyword(s):  
Young People ◽  
Labour Market ◽  
Labour Force ◽  
National Level ◽  
European Countries ◽  
Youth Employment ◽  
The European Union ◽  
East European ◽  
Activity Rate ◽  
Youth Labour Market

The aim of this paper is to elabourate the youth on the labour market in selected South-East European countries with special emphaisis on Macedonia and particular reference to their present state. The analysis of Macedonian youth employment is accomplished with their educational and economic structure. The situation of the global youth employment remains unstable. Problems of long job progression and a lack of stable employment for youth exist almost all around the world. As a part of the labour force, young people can significantly contribute for increasing the economic development of the country with their knowledge and abilities. Methods of analyses and synthesis, deduction and induction, as well as descriptive statistics and comparison methods will be implemented in this research. The situation of young people on the labour market in Macedonia is illustrated by paralleling with labour market indicators at national level, as well as with South-East European countries. Recent researches show that many youth in the SEE region are not active in the labour market and Macedonian youngsters aged between 15 and 24 years old are more likely to be unemployed compared to the other age groups. Labour market in Macedonia is characterized by a relatively low activity of youth. The youth activity rate in Macedonia is lower than the European Union and the average activity rate in Western Balkan countries.

Does minimum wage affect hours worked of paid employment in Indonesia?

2014 ◽  
Vol 41 (5) ◽  
pp. 362-379 ◽  
Author(s):  
Devanto Shasta Pratomo
Keyword(s):  
Minimum Wage ◽  
Selection Bias ◽  
Rural Areas ◽  
Urban Areas ◽  
Sample Selection ◽  
Hours Worked ◽  
Content Type ◽  
Female Workers ◽  
Paid Employment ◽  
Urban Rural

Purpose – The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey (Sakernas) data from 1996 to 2003. Design/methodology/approach – This study employs Bourguignon-Fournier-Gurgand two-step procedure of sample selection corrections based on a multinomial logit model for a potential selection bias from a non-random sample. This study extends the specification by examining the effects of minimum wage on hours worked of paid employment separately across individuals in different groups of gender (male-female workers) and residences (urban-rural areas). Findings – This study generally found that an increase in the minimum wage increases hours worked of the existing paid employees. The effects of the minimum wage on hours worked are stronger for female workers than male workers particularly in urban areas due to that female workers, particularly in urban areas, are mostly employed in industries which contain more low-wage workers. Comparing residences, the minimum wage coefficient in rural areas is slightly higher because of the structural transformation in Indonesia marked by a shift in employment from the agriculture sector to the other sectors that require more working hours. Originality/value – The empirical studies of the effect of minimum wage on hours worked in developing countries are very limited. This study contributes to the literature by employing the sample selection corrections based on a multinomial logit for a potential selection bias from a non-random sample This study also extends the hours worked specification by analyzing the effects of minimum wage on hours worked separately across individuals in different groups of workers, in terms of gender (male-female workers) and their residences (urban-rural areas).

scholarly journals Demographic Transition and Youth Employment in Pakistan

2008 ◽  
Vol 47 (1) ◽  
pp. 27-70 ◽  
Author(s):  
G. M. Arif ◽  
Nusrat Chaudhry
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Rural Areas ◽  
Demographic Transition ◽  
Total Population ◽  
Labour Force ◽  
Convincing Evidence ◽  
Youth Employment ◽  
Employment Policy ◽  
Demographic Surveys

There is convincing evidence that Pakistan has entered the demographic bonus phase; child dependency is declining and youth share in the total population is rising. This paper has examined youth employment in the context of demographic transition evidenced since the early 1990s. Changes in the level of educational attainment have also been analysed. The study has used the data from Pakistan Demographic Surveys and Labour Force Surveys carried out between 1990 and 2005. Findings of the study show that the benefits of demographic transition in terms of rising share of youth in the total population has partially been translated through development of their human capital and productive absorption in the local labour market. While the pace of human capital formation seems to be satisfactory in urban Pakistan, it is dismal in rural areas, particularly for females. High levels of both female inactivity across the education categories and unemployment for males as well as females urge a strong youth employment policy in Pakistan to reap the benefits of the ongoing demographic transition. Youth are a source of development, and a high priority may be placed on preparing them with the skills needed for their adjustment in the labour market.

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.

Which professional skills value more under digital transformation?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sofia Paklina ◽  
Elena Shakina
Keyword(s):  
Text Mining ◽  
Labour Market ◽  
Empirical Evidence ◽  
Labour Force ◽  
Sample Selection ◽  
Large Data ◽  
Hedonic Pricing ◽  
Data Set ◽  
Content Type ◽  
Computing Skills

PurposeThis study seeks to explore the demand side of the labour market influenced by the digital revolution. It aims at identifying the new composition of skills and their value as implicitly manifested by employers when they look for the new labour force. The authors analyse the returns to computing skills based on text mining techniques applied to the job advertisements.Design/methodology/approachThe methodology is based on the hedonic pricing model with the Heckman correction to overcome the sample selection bias. The empirical part is based on a large data set that includes more than 9m online vacancies on one of the biggest job boards in Russia from 2006 to 2018.FindingsEmpirical evidence for both negative and positive returns to computing skills and their monetary values is found. Importantly, the authors also have found both complementary and substitutional effects within and between non-domain (basic) and domain (advanced) subgroups of computing skills.Originality/valueApart from the empirical evidence on the value of professional computing skills and their interrelations, this study provides the important methodological contribution on applying the hedonic procedure and text mining to the field of human resource management and labour market research.

Female labour force participation: evidence from Ghana

2017 ◽  
Vol 44 (11) ◽  
pp. 1489-1505 ◽  
Author(s):  
Abena Yeboah Abraham ◽  
Fidelia Nana Akom Ohemeng ◽  
Williams Ohemeng
Keyword(s):  
Informal Sector ◽  
Rural Areas ◽  
Census Data ◽  
Labour Force ◽  
Labour Force Participation ◽  
Female Labour Force Participation ◽  
Formal Sector ◽  
Social Reforms ◽  
Female Labour ◽  
Content Type

Purpose The purpose of this paper is to examine female labour force participation (FLFP) and their employment choice between the formal and informal sectors after several institutional and social reforms such as Millennium Development Goal 3 aimed at promoting gender equality and empowerment of women by 2015, using data from Ghana’s 2010 Population and Housing Census. Design/methodology/approach In this paper, logit regression and multinomial logit techniques were employed. Findings The results show that FLFP has declined marginally from the 2005 figures; education remains the important factor in determining women’s participation in the formal sector. Strikingly 91 per cent of the FLFP is engaged in the informal sector of the Ghanaian economy, a sector with a very low contribution per head. Practical implications Interventions such as encouraging female education and retraining of self-employed females to improve upon their efficiency ought to be pursued vigorously; whiles developing rural areas for females to get equal labour opportunities and many others aimed at enhancing the efficiency and by inference earning per head of the informal sector is highly recommended. Originality/value The literature on the FLFP is thin in Ghana. The current study uses a census data unlike the previous studies and as such employed a huge sample size that reflects the reality in Ghana. The study contributed immensely to policy having established that 91 per cent of the female labour force is engaged in the informal sectors of the economy, and therefore any intervention targeting at reducing poverty and meeting the MDG 3 should be targeted at the informal sector of the Ghanaian economy.

Gender infrastructure gaps galvanise diverse partners

2019 ◽  
Keyword(s):  
Value Chain ◽  
Rural Areas ◽  
Labour Force ◽  
Due Diligence ◽  
Content Type ◽  
Gig Economy ◽  
Women's Participation ◽  
Developing Cities ◽  
Development Institutions ◽  
Development Goals

Subject Efforts to close gender infrastructure gaps. Significance Development institutions, governments, and private-sector investors, developers and operators are increasingly integrating a gender lens into infrastructure projects. This approach is integral to achieving the 2030 UN Sustainable Development Goals (SDGs), facilitating broad-based economic growth and making infrastructure more efficient and commercially viable. Impacts Improved infrastructure would increase women's participation in the formal labour force, especially in developing cities and rural areas. Better telecommunications access would enable women to move up the value-chain in the gig economy. Gender-sensitive analysis will gradually become central to corporate due diligence.

Labour market flexibility and spatial mobility

2014 ◽  
Vol 35 (6) ◽  
pp. 746-752 ◽  
Author(s):  
Raul Eamets ◽  
Krista Jaakson
Keyword(s):  
Labour Market ◽  
Job Search ◽  
Quantitative Methods ◽  
Labour Force ◽  
Occupational Mobility ◽  
Special Issue ◽  
Spatial Mobility ◽  
Firm Level ◽  
Content Type ◽  
Labour Market Flexibility

Purpose – Recent economic recession has highlighted the role of labour market flexibility as a key factor of competitiveness of a country. Despite the fact that labour mobility can essentially be seen as part of labour market flexibility, there is notable research gap concerning spatial mobility and other facets of labour market flexibility. The purpose of this special issue is to fill these gaps. Design/methodology/approach – The papers in the special issue represent various quantitative methods and databases, whereas mainly micro data (workplace, labour force or immigrant surveys, job search portal, etc.) is used. However, the type of labour market flexibility addressed is both micro- and macro-level. Findings – It is demonstrated that labour occupational mobility is determined by the business cycle, numerical flexibility, occupational categories, and sector. Spatial mobility may have counterintuitive effects on individual occupational mobility depending on gender and it is related to various flexibilities in the workplace. It is also suggested that different types of flexibilities on a firm level are interdependent of each other. Originality/value – The special issue adds to the labour market related knowledge by integrating labour market flexibility and mobility. Individually, both phenomena have been studied before, but not much research is devoted to their inter-linkages. The special issue also contributes by examining labour market flexibility and spatial mobility in the context of different countries, economic cycles, and institutional settings.

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