scholarly journals The Effect of Permanent Employment on Absenteeism: Evidence from Labor Reform in Spain

ILR Review ◽  
2017 ◽  
Vol 71 (2) ◽  
pp. 525-549 ◽  
Author(s):  
Inmaculada García Mainar ◽  
Colin P. Green ◽  
María Navarro Paniagua

Restrictive employment protection legislation has been highlighted as a key reason for lower labor productivity in Europe compared to the United States. Evidence in the literature has shown robust effects of employment protection on effort, though the effects appear too small to generate marked cross-country differences in labor productivity. The authors revisit this issue using representative data of private-sector workers in Spain. A range of legislative changes aimed at reducing the incidence of temporary employment are used to estimate the effect of permanent employment on one aspect of effort, absenteeism. Results suggest that being employed on a permanent contract increases the probability of being absent from work due to sickness by approximately 5.3 percentage points and the time absent by approximately 0.30 of a day per week. These results suggest that cross-country differences in employment protection have the potential to have a substantial impact on labor productivity.

2016 ◽  
Vol 76 (3) ◽  
pp. 874-908 ◽  
Author(s):  
Marcel P. Timmer ◽  
Joost Veenstra ◽  
Pieter J. Woltjer

Labor productivity in German manufacturing lagged persistently behind the United States in the early twentieth century. Traditionally, this is attributed to dichotomous technology paths across the Atlantic. However, various industry case studies suggest rapid diffusion of U.S. technologies in Germany. We develop a novel decomposition framework based on Data Envelopment Analysis (DEA) to reconcile these findings. We conclude that by 1936 inefficient assimilation of modern production techniques—and not the use of different techniques—accounted for most of the U.S./German labor-productivity gap. Our findings call for a reappraisal of the drivers behind cross-country differences in manufacturing performance.


2021 ◽  
pp. 095001702110314
Author(s):  
Tomas Berglund ◽  
Roy A Nielsen ◽  
Olof Reichenberg ◽  
Jørgen Svalund

This study compares the labour market trajectories of the temporary employed in Norway with those in Sweden. Sweden’s employment protection legislation gap between the strict protection of permanent employment and the loose regulation of temporary employment has widened in recent decades, while Norway has maintained balanced and strict regulation of both employment types. The study asserts that the two countries differ concerning the distribution of trajectories, leading to permanent employment and trajectories that do not create firmer labour market attachment. Using sequence analysis to analyse two-year panels of the labour force survey for 1997–2011, several different trajectories are discerned in the two countries. The bridge trajectories dominate in Norway, while dead-end trajectories are more common in Sweden. Moreover, the bridge trajectories are selected to stronger categories (mid-aged and higher educated) in Sweden than in Norway. The results are discussed from the perspective of labour market dualisation.


2014 ◽  
Vol 69 (3) ◽  
pp. 597-620
Author(s):  
Hyondong Kim ◽  
Dong-Jin Lee

Summary Over the past decade, Korean businesses have experienced significant growth in the proportion of temporary employment. In response, the Korean government has enacted the “Temporary Employment Protection Act” to curb the use of temporary employment. With these legislative changes, Korean employers confront choices about whether to encourage transitions from temporary to permanent employment or to utilise outsourcing/contracting services. The purpose of this study is to explore internal labour markets (ILMs) and investigate why companies are willing to transform temporary employment into permanent employment. Furthermore, in the face of market volatility, we consider how companies are willing to increase the number of temporary workers in order to more easily adjust the numbers and types of human resources, rather than constructing and establishing ILMs within a firm. By investigating the interrelated relationships between ILMs, environmental dynamism, and transitions from temporary to permanent employment status, this study elaborates the features of ILMs in making employment decisions. The statistical results of this study show that structural elements of ILMs facilitate transitions from temporary to permanent employment. Among ILMs, only seniority-based pay plans reduce the number of permanent employees transferred from temporary status when companies experience dynamic changes in their environments. Furthermore, ILMs exerted greater influences over employers’ decisions about transitions from temporary to permanent employment a few years after the enactment of changes in temporary labour laws and regulations. This study shows that the features of an employment system determine companies’ decisions about temporary versus permanent employment. ILMs shape and establish organisational norms and cultural traditions that determine employment structures. Furthermore, institutionalised environments also determine whether employers decide to make transitions from temporary to permanent employment. Future studies should pay attention to the features of employment systems as determinants regarding firms’ human capital.


2019 ◽  
Vol 55 (4) ◽  
pp. 689-707
Author(s):  
Björn Högberg ◽  
Mattias Strandh ◽  
Anna Baranowska-Rataj

Temporary work is common across Europe, especially among young people. Whether temporary employment is a transitory stage on the road to standard employment, and whether this varies depending on institutional contexts, is controversial. This article investigates variability in transition rates from temporary to permanent employment across Europe, and how this is related to employment protection legislation (EPL) and the vocational specificity of education systems. We utilize harmonized panel data from the European Union Statistics on Income and Living Conditions, covering 18 European countries and including 34,088 temporary workers aged 18–30. The results show that stricter EPL is associated with lower rates of transitions to permanent employment, while partial deregulation, with strict EPL for permanent contracts but weaker EPL for temporary contracts, is associated with higher transition rates. Vocationally specific education systems have higher transition rates, on average. Moreover, the role of EPL is conditional on the degree of vocational specificity.


2002 ◽  
Vol 16 (3) ◽  
pp. 59-66 ◽  
Author(s):  
Gary Solon

International studies of the extent to which economic status is passed from one generation to the next are important for at least two reasons. First, each study of a particular country characterizes an important feature of that country's income inequality. Second, comparisons of intergenerational mobility across countries may yield valuable clues about how income status is transmitted across generations and why the strength of that intergenerational transmission varies across countries. The first section of this paper explains a benchmark measure of intergenerational mobility commonly used in U.S. studies. The second section summarizes comparable empirical findings that have accumulated so far for countries other than the United States. The third section sketches a theoretical framework for interpreting cross-country differences in intergenerational mobility.


2020 ◽  
Vol 67 (2) ◽  
pp. 139-165 ◽  
Author(s):  
Cristiano Perugini

In this paper we investigate gender wage disparities in 25 EU countries before and after the crisis, focusing on the role employment protection legislation played in shaping the gap across the wage distribution. Results of quantile regressions reveal a remarkable cross-country diversity in the size of the gap and confirm the widespread existence of glass-ceiling effects. Stricter rules for temporary contracts mitigate the gender gap, especially at the top of the distribution; stronger protection for permanent workers is found to increase the gap at the bottom of the distribution and to decrease it at the middle and at the top.


2021 ◽  
Author(s):  
Bastian Jaeger ◽  
Matti Wilks

People’s treatment of others—humans, animals, or other targets—often depends on whether they think the entity is worthy of moral consideration. Recent work has begun to examine which factors determine whether an entity is included in people’s moral circle. Here, we rely on multilevel modeling to map the variance components of the moral circle. We examine how much variance in moral concern is explained by who is being judged (i.e., between-target differences), by who is making the judgment (i.e., between-judge differences), and by their interaction. Two studies with participants from the Netherlands, the United States, the United Kingdom, and Australia (N = 836) show that all three components explain substantial amounts of variance in judgments of moral concern. Few cross-country differences emerged. Thus, to accurately predict when people grant moral standing to a target, characteristics of the target, characteristics of the judge, and their interaction need to be considered.


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