scholarly journals Why Have Labour Markets Reacted To The Global Crisis In Different Ways?

2016 ◽  
Vol 19 (4) ◽  
pp. 5-26 ◽  
Author(s):  
Eugeniusz Kwiatkowski

This paper aims to identify the effects of the global crisis on employment and unemployment in the EU countries and indicate factors which may explain the differentiated response of labour markets to this crisis. Analyses show that the global economic crisis affected the labour markets of EU countries, causing declines in employment and increases in unemployment. The greatest declines in employment were observed in Greece, Estonia, Ireland, Spain, Iceland, and Portugal, and the lowest in Austria, Belgium, the Netherlands, and Poland. The greatest increase in unemployment occurred in the Baltic countries, Greece, Spain, and Portugal. The analyses indicate that the scale of changes in employment and unemployment during the global crisis depends on such factors as: the depth of the demand shock and scale of GDP adjustments; the degree of openness of the economy; the scope of alternative labour market adjustments and some labour market institutions, especially employment protection legislation and the share of fixed-term employment contracts. The analyses indicate that the smallest declines in employment (and correspondingly the smallest increases in unemployment) during the crisis can be expected in countries where the EPL indexes and share of those employed on fixed-term employment contracts in total employment are moderate.

2014 ◽  
Vol 17 (1) ◽  
pp. 21-44
Author(s):  
Eugeniusz Kwiatkowski ◽  
Przemysław Włodarczyk

This article presents the impact of the global crisis on employment in the OECD countries, and in particular is an attempt to explain why the impact is of a different scope in particular countries. Particular attention has been paid to the question of the role played by labour market institutions (such as employment protection legislation and fixed-term employment). The global economic crisis has influenced the situation in the labour markets of OECD countries, causing declines in employment and increases in unemployment. Changes in the level of employment in individual countries varied. Between 2007-2012 declines in production took place in the majority of OECD countries. Declines in real wages were also observed in those countries. On the other hand, in the period of 2005-2012 relatively small changes in labour market institutions occurred. With respect to both the stringency of employment protection legislation, as well as the share of fixed-term employment, there were no clearly visible trends in the data during the period of economic crisis. The econometric verification of theoretical hypotheses was performed using annual data from the 2005-2012 period for 26 OECD countries, and it shows that GDP and real wages were statistically significant determinants of employment size in the analyzed period. The study also confirmed the hypothesis of the existence of a non-linear (U-shaped) relationship between employment elasticity with respect to GDP and the level of stringency of employment protection legislation, as well as the share of fixed-term employment in the total number of employment contracts. The results show that the smallest declines in employment during a crisis might be expected in countries where the level of EPL is close to 2, and the share of fixed-term employment in the total number of employment contracts is close to 18%.


2019 ◽  
Vol 1 (11) ◽  
pp. 124
Author(s):  
Daina Znotiņa ◽  
Maris Igavens

Very often youth faces many difficulties when trying to enter the labour market. It is because of lack of experience, insufficient vocational education, inadequacy between professional education and requirements for specialists in the job market. It is necessary that students get competencies and skills needed for the labour market and increase their employment possibilities. Rezekne Academy of Technologies implemented a project, where one of the objectives was integration of problem-based learning (PBL) into study processes. The aim of the research study is to investigate problem-based learning experiences among students and lecturers. Research methods – the monographic method, the analysis and survey methods. Problem-based learning is much more exciting for students and faculty than traditional learning, but it is also more time consuming and expertise intensive.


2003 ◽  
Vol 9 (1) ◽  
pp. 88-100 ◽  
Author(s):  
Mira Celin

It is not easy to gauge the extent to which the European Employment Strategy (EES) has influenced the EU labour market over the last five years but it has surely contributed to the creation of more than 10 million new jobs and 4 million fewer unemployed. However, is this common strategy the right answer for the labour markets of the future member states? This article examines how the candidate countries are adapting to the EES and where they stand as compared to the current EU countries in achieving the Lisbon targets. The article assesses whether the EES is appropriate for the labour markets of the future member states by analysing both the deficiencies and the positive elements of this strategy for these countries, taking into account proposals for a new revised EES adapted to the needs of changing labour markets, globalisation and enlargement.


2000 ◽  
Vol 1 (2) ◽  
pp. 229-250
Author(s):  
Norbert Berthold

Abstract The situation on the German labour market is still a catastrophe. The institutional set-ups on the labour market and the welfare state obviously no longer fit the fundamentally changed economic environment. There is next to no competition on the labour market and unions and employers' associations use the generous welfare state to transfer the burden of adjustment to changes in the economic environment onto the public at large. Institutional mismatch is prevalent. The red-green coalition government has not only realized that persistently high unemployment inflicts tremendous economic damage but that it is also politically destabilizing. It has therefore announced that the performance on the labour market during its term of office shall be its own measure of success or failure. This paper discusses whether the regulatory steps taken by the red-green coalition government, like implementing stricter employment protection legislation, reintroducing full pay when sick, and changing the law concerning low-paid jobs, are suitable for reducing this institutional mismatch.


2013 ◽  
Vol 3 (1) ◽  
pp. 123 ◽  
Author(s):  
Jørgen Svalund

Comparing the Nordic countries, this article examines different combinations of permanent and temporary employment protection legislation, and whether such differences are reflected in patterns of labor market transitions. We find higher levels of transitions from unemployment to temporary contracts in Sweden and Finland, with lax regulation of temporary contracts and strict regulation of permanent contracts. Further, temporary employees are integrated into permanent contracts in countries with lax (Denmark) or strict (Norway) regulation of permanent contracts, while this is not the case in Finland and Sweden. For these countries, the study indicates a certain degree of labor market duality, with low mobility from temporary to permanent employment contracts.


Author(s):  
Gilbert Cette ◽  
Jimmy Lopez ◽  
Jacques Mairesse

What is the impact of labour market regulations as measured by the OECD indicator of employment protection legislation (EPL) on capital and skill composition? Precisely, this study investigates the effects of changes in EPL on changes in four types of capital and three components of labour skill. They include construction, non-ICT, ICT, and R&D capital components on the one hand, and low-, medium-, and highly-skilled labour on the other. Our analysis is grounded on a large country–industry panel dataset of fourteen OECD countries, and eighteen manufacturing and market service industries, from 1988 to 2007. It shows that strengthening EPL lowers ICT capital and, even more severely, R&D capital relative to non-ICT and construction capital; it also brings down low-skilled relative to highly-skilled workers’ employment. These results suggest that structural reforms for more labour flexibility could have a favourable impact on firms’ R&D investment and hiring of low-skilled workers.


2021 ◽  
Vol 68 (2) ◽  
pp. 167-185
Author(s):  
Philips Arestis ◽  
Jesús Ferreiro ◽  
Carmen Gómez

This paper analyses the role played by the flexibilization of labour markets on functional income distribution. Specifically, we analyse whether employment protection legislation affects the evolution of labour income share, measured by the size of compensation of employees as a percentage of GDP, the sum of wages and salaries as a percentage of GDP and the size of the adjusted wage share, in twenty European economies. Our study?s results show that the evolution of labour income share is explained by the economic growth, the growth of employment and unemployment rates, and the growth of real wages. Regarding the role played by the flexibility of the labour market, and specifically of the employment protection legislation, only employment protection for temporary workers has a significant impact on the evolution of labour shares. Our results show that stricter provisions on the use of fixed-term and temporary agency contracts have a positive impact on the growth of labour shares.


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