FRICTIONS AND MISMATCHES IN THE LABOR MARKET

2019 ◽  
pp. 1-17
Author(s):  
BURHAN BINER ◽  
TURKMEN GOKSEL
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Infinite Horizon ◽  
Job Seekers ◽  
Job Market ◽  
Highly Educated ◽  
The Us ◽  
Dynamic Search ◽  
Wage Distributions ◽  
High Degree

We develop an infinite-horizon dynamic search model to understand education–job mismatches in the labor markets where job seekers face three different types of labor markets based on their minimum educational requirements. Using a new dataset, we find that our model matches the US data well when we introduce heterogeneity through wage distributions. We use counterfactual experiments to show that even when the general unemployment level is kept constant, if the conditions within different job market types change, overeducation levels may increase or decrease dramatically. We find that regardless of the general unemployment level, frictions in the job market is the main reason for overeducation. However when unemployment is high, highly educated job seekers may settle for jobs below their education level at a higher level leading to a high degree of overeducation in the labor market and crowding out job seekers who have lower level of education.

scholarly journals The Structure of Labor Markets in the US and China: Social Capital andGuanxi

2018 ◽  
Vol 14 (1) ◽  
pp. 5-36 ◽  
Author(s):  
Nancy DiTomaso ◽  
Yanjie Bian
Keyword(s):  
Social Capital ◽  
Labor Market ◽  
Labor Markets ◽  
The United States ◽  
Political Systems ◽  
Job Seekers ◽  
Organizational Policies ◽  
The Us ◽  
History Of ◽  
Political Differences

ABSTRACTDespite the major cultural and political differences between the United States and China, in both countries access to jobs is supposed to be guided by fair and equitable procedures. In the US, there is a presumption of an open labor market in which potential employees compete on the basis of their qualifications, where the fairness of decisions is guided by anti-discrimination laws and normative organizational policies. In China, although there is a history of close relationships that guide the exchange of favors, following the 1949 revolution, Communist Party leaders were given the authority to allocate positions in ways that were supposed to eliminate special privileges of class and background. Yet recent research has suggested that social connections are an important part of getting a job in both the US and China for two-thirds to three-quarters of job seekers. In the US context, such connections are described as social capital. In the Chinese context, connections are defined asguanxi. In this article, we review research on labor market processes in both the US and China to address three important questions: (a) How can we understand the similar functioning of labor markets in such distinct cultural and political systems as the US and China? (b) What are the mechanisms or processes by which people find jobs in the US and China, and how are people able to access these mechanisms or processes in the context of constraining social structures and legal environments? and (c) What are the theoretical implications of the ‘generalized particularism’ that seems to shape labor markets in both the US and China.

scholarly journals Searching for employment: highly educated immigrant women and combined capabilities

2017 ◽  
Vol 10 (1) ◽  
pp. 35-42
Author(s):  
Tytti Steel ◽  
Marjut Jyrkinen
Keyword(s):  
Capability Approach ◽  
Immigrant Women ◽  
Research Question ◽  
Third Sector ◽  
Job Seekers ◽  
Job Market ◽  
Enabling Factors ◽  
Employment Services ◽  
Highly Educated ◽  
Gender And Age

Our paper addresses the ways in which highly educated immigrant women encounter and experience employment services in Finland. This qualitative study examines a group of women who have experience with both governmentally funded Employment and Economic Centre services (TE Services) and services offered by the third sector. The research question in this paper is as follows: How do the employment services support the capabilities of immigrant women job seekers trying to find work? Our analysis is inspired by Sen’s capability approach and Nussbaum’s concept of combined capabilities. The first empirical section addresses women with a foreign background as job seekers and their internal capabilities. We look at the enabling factors and hurdles faced by highly educated immigrant women trying to enter the job market due to their gender and age. In the second empirical section, we analyse how the combined capabilities are constructed through contacts with employment services.

High Tech and High Touch

2017 ◽  
Author(s):  
James E. Coverdill ◽  
William Finlay
Keyword(s):  
Social Media ◽  
Labor Market ◽  
Labor Markets ◽  
Great Recession ◽  
High Tech ◽  
Internal Labor Markets ◽  
Job Seekers ◽  
The Great Recession ◽  
Labor Market Intermediaries ◽  
Large Numbers

This book examines headhunting—contingency recruiting—in the wake of two profound changes in the labor market. The first is the emergence and explosive rise of various forms of social media, most prominently LinkedIn, which have made information about employers, jobs, and job-seekers much more widely available. The second is the unraveling of internal labor markets and the fraying of the ties between employers and employees, which started in the 1980s and 1990s, and accelerated in the wake of the bursting of the dotcom bubble and the Great Recession. Both changes created the possibility that employers and candidates would be able to find each other without the benefit of labor-market intermediaries like headhunters. The book explains why headhunting survived these changes: employers still need headhunters to find good candidates quickly. In a high-tech world, it is relatively easy to find large numbers of apparently qualified prospective candidates. Headhunters, however, determine which of these prospects are truly viable candidates and they invest time and effort in converting prospects into candidates. They bring high-touch search to a high-tech labor market.

scholarly journals ‘You Need to Know Someone Who Knows Someone’: International Students’ Job Search Experiences

2020 ◽  
Author(s):  
Rolle Alho
Keyword(s):  
Labor Market ◽  
International Students ◽  
Labor Markets ◽  
Job Search ◽  
Market Integration ◽  
International Student ◽  
Theoretical Framework ◽  
Labor Market Integration ◽  
Highly Educated ◽  
Institutional Contexts

The article analyzes how 31 international students (IS) entered the Finnish labor market as they graduated from Finnish universities. Despite a growing interest in international student migration (ISM), there are few studies that analyze the firsthand experiences of IS as they seek to enter the receiving-country labor markets as they graduate. This article contributes to the topic by showing how the interviewees of this study managed to enter the receiving-country labor markets, which are embedded in national, cultural, and institutional contexts that require context-bound knowledge of particular recruitment patterns.The contribution of the article lies in (1) providing new insights on an understudied topic: IS’ experiences of finding jobs in the country of graduation, and, in (2) constructing a theoretical framework for analyzing IS’ job search in the countries ofgraduation. More broadly, the article contributes to the studies on highly educated migrants’ labor market integration by shedding light on the experiences in a Nordic setting.

Migration policies and practices at job market participation: perspectives of highly educated Turks in the US, Canada and Europe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cihan Aydiner ◽  
Erin Rider
Keyword(s):  
Higher Education ◽  
Labor Market ◽  
Middle East ◽  
Labor Market Participation ◽  
Market Participation ◽  
Job Market ◽  
Migration Policies ◽  
Content Type ◽  
Western Countries ◽  
Highly Educated

PurposeThis study aims to clarify the labor market participation of highly educated Turks who moved or were exiled to the Western countries after the July 15th, 2016 Coup attempt in Turkey. These recent Turkish flows create a compelling case for researching higher education connections and the administration of justice in migration policies/practices related to highly educated people's job market participation. This study aims to expand the discussion on migration policies, practices, job market participation, how highly skilled migrants perceive them in various contexts and understand the complexity of highly educated migrants' incorporation into destination countries and their perspectives and lived experiences with policy practice.Design/methodology/approachThe primary source of the data is the semi-structured 30 interviews with the highly educated Turkish immigrants and refugees in Western countries, which enables comparative data from individuals of the same origin. The qualitative data have been transcribed, coded and analyzed according to the grounded-theory design from this vulnerable community. The high education was determined as graduation from 4-years colleges, which was recognized by destination countries. Our methodological tools were driven by the obstacles to collect data from politically sensitive, forced, or exiled migrants.FindingsFirst, this article challenges the assumption that incorporating job market participation is a smooth process for highly educated migrants who moved to Western countries. Second, highly educated immigrants tried to reach their previous statuses and life standards as fast as possible by working hard, making sacrifices and developing innovative strategies. The immigrants in Europe have faced greater obstacles with policies while participating in the job market. Third, the importance of networking and the active usage of social media platforms to communicate with other immigrants in similar situations facilitated the job market participation and job preferences of highly educated migrants. Fourth, while fast job market participation experiences of immigrants in Northern America were increasing their positive feelings regarding belonging, people who have similar skillsets in Europe experienced more problems in this process and felt alone.Research limitations/implicationsThe research results may lack generalizability due to the selected research approach. Further studies are encouraged to reach more population for each country to compare them.Practical implicationsConsequently, higher education may be a more vital decision point in migration policies and practices. This study contributes to a better understanding of these factors by showing the perspectives and experiences of highly educated migrants comparatively. Thus, it broadens the discussion about migration policies and job market participation of highly educated migrants.Social implicationsBuilding on this work, the authors suggest more studies on the temporary deskilling of highly educated migrants until they reach re-credentialing/education or training to gain their former status.Originality/valueFirst, while most studies on immigrants' labor market participation and highly educated immigrants focus on voluntary migrants, this study examines underrepresented groups of involuntary migrants, namely forced migrants and exiled people, by focusing on non-Western Muslim highly educated Turks. Second, the trouble in the Middle East continues and regimes change softly or harshly. There is a growing tendency to examine these topics from the immigrants' perspective, especially from these war-torn areas. This article adds to this discussion by stating that rather than forced migration due to armed conflict, the immigrants from Turkey – the non-Arab Muslim state of the Middle East – are related to political conditions. Lastly, drawing on the relationship between social change in the origin country and migration and addressing the lack of reliable and comparative data, this study focuses on same origin immigrants comparatively in eight different countries.

scholarly journals Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment *

2013 ◽  
Vol 128 (2) ◽  
pp. 531-580 ◽  
Author(s):  
Bruno Crépon ◽  
Esther Duflo ◽  
Marc Gurgand ◽  
Roland Rathelot ◽  
Philippe Zamora
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Market Outcomes ◽  
Job Placement ◽  
Randomized Experiment ◽  
Job Seekers ◽  
Market Outcomes ◽  
Labor Market Policies ◽  
Net Benefits ◽  
Displacement Effects

Abstract This article reports the results from a randomized experiment designed to evaluate the direct and indirect (displacement) impacts of job placement assistance on the labor market outcomes of young, educated job seekers in France. We use a two-step design. In the first step, the proportions of job seekers to be assigned to treatment (0%, 25%, 50%, 75%, or 100%) were randomly drawn for each of the 235 labor markets (e.g., cities) participating in the experiment. Then, in each labor market, eligible job seekers were randomly assigned to the treatment, following this proportion. After eight months, eligible, unemployed youths who were assigned to the program were significantly more likely to have found a stable job than those who were not. But these gains are transitory, and they appear to have come partly at the expense of eligible workers who did not benefit from the program, particularly in labor markets where they compete mainly with other educated workers, and in weak labor markets. Overall, the program seems to have had very little net benefits.

scholarly journals Universal resilience patterns in labor markets

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Esteban Moro ◽  
Morgan R. Frank ◽  
Alex Pentland ◽  
Alex Rutherford ◽  
Manuel Cebrian ◽  
...  
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Great Recession ◽  
Urban Policy ◽  
Economic Resilience ◽  
The Great Recession ◽  
Us Economy ◽  
The Us ◽  
Skill Requirements ◽  
Us Cities

AbstractCities are the innovation centers of the US economy, but technological disruptions can exclude workers and inhibit a middle class. Therefore, urban policy must promote the jobs and skills that increase worker pay, create employment, and foster economic resilience. In this paper, we model labor market resilience with an ecologically-inspired job network constructed from the similarity of occupations’ skill requirements. This framework reveals that the economic resilience of cities is universally and uniquely determined by the connectivity within a city’s job network. US cities with greater job connectivity experienced lower unemployment during the Great Recession. Further, cities that increase their job connectivity see increasing wage bills, and workers of embedded occupations enjoy higher wages than their peers elsewhere. Finally, we show how job connectivity may clarify the augmenting and deleterious impact of automation in US cities. Policies that promote labor connectivity may grow labor markets and promote economic resilience.

scholarly journals REASONS OF WORKFORCE EMIGRATION FROM GEORGIA TO EUROPE AND EMPLOYMENT PROBLEMS

2020 ◽  
pp. 86-90
Author(s):  
KESO SUMBADZE
Keyword(s):  
Labor Market ◽  
Social Economic ◽  
European Countries ◽  
Job Seekers ◽  
Job Market ◽  
Employment Conditions ◽  
Market Requirements ◽  
Economic Background ◽  
Job Openings ◽  
High Level

If we consider unemployment level in Georgia and Europe, multitude of problems, that is visible in this regard, won’t be hard to be detected. Finding a job is a vitally important issue for a person. However, by looking at current job openings in labor market, requirements complexity and unreality will be noticed in fact. Besides, there are several problems that studying and elimination are essential for both job-seekers and employed people.Exited severe social-economic background, high level of unemployment and unfavorable employment conditions in Georgia, promote workforce migration. The closest job market for our country’s citizens is European countries, where they have to deal with too complicated situations. The purpose to this article is to draw attention for Georgia and European countries’ topical issues such as: Unemployment, jobs search and difficulties arisen it that process, workforce emigration caused by high level of unemployment, in Europe and came across employment problems. Problems, revealed as research results, and developed recommendation to solve them will be suggested in detail.

scholarly journals Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes

ILR Review ◽  
1998 ◽  
Vol 51 (2) ◽  
pp. 299-322 ◽  
Author(s):  
Rosella Gardecki ◽  
David Neumark
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Market Outcomes ◽  
School To Work ◽  
Longitudinal Survey ◽  
Job Market ◽  
Market Outcomes ◽  
Employment Relationships ◽  
Work Transition ◽  
Stable Employment

This paper examines the consequences of initial periods of “churning” or “mobility” in the labor market, to help assess whether faster transitions to stable employment relationships—as envisioned by advocates of school-to-work programs—would be likely to lead to better adult labor market outcomes. An analysis of National Longitudinal Survey of Youth data for the years 1979–92 yields modest evidence, at best, linking early job market stability to better labor market outcomes. The authors find that for both genders, adult labor market outcomes (defined as of the late 20s or early to mid-30s) are for the most part unrelated to early labor market experiences. This evidence does not support efforts to explicitly target the school-to-work transition, insofar as doing so implies changing the structure of youth labor markets so that workers form earlier and firmer attachments to employers, industries, or occupations.

scholarly journals Does the US Labor Market Reward International Experience?

2014 ◽  
Vol 104 (5) ◽  
pp. 250-254 ◽  
Author(s):  
Susan Pozo
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Labor Markets ◽  
International Experience ◽  
Self Selection ◽  
The Us ◽  
Alternative Testing ◽  
International Human ◽  
Creativity And Innovation

A typical strategy for measuring the returns to international experience--comparing the earnings of returning migrants to comparable non-migrants--has been criticized for not adequately accounting for self-selection. I suggest an alternative, testing whether individuals born beyond US borders, but into US citizenship, earn more in US labor markets relative to counterparts born on US soil. Those born abroad to US citizens did not self-select an international experience. Using the ACS, I find that the US market rewards international experience, especially in occupations that value creativity and innovation. Women, in particular, are handsomely rewarded for international human capital.

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