scholarly journals Training in the Great Recession – Evidence from an Individual Perspective

2020 ◽  
Vol 240 (4) ◽  
pp. 493-523 ◽  
Author(s):  
Daniel Dietz ◽  
Thomas Zwick

AbstractThis paper analyses the effect of the economic crisis in the years 2008 and 2009 on individual training activities of different employee groups within establishments. We use a unique German linked employer–employee panel data set with detailed information on individual training history (WeLL-ADIAB). The so-called Great Recession can be seen as an exogenous, unexpected, and time-limited shock. Although our results cannot be interpreted in a strictly causal manner, our Diff-in-Diff analyses suggest a direct negative effect of the crisis on individual training activities in 2009 and 2010. The negative effect therefore sets in with a time lag and lasts until after the recession. Furthermore, the recession has a stronger effect for employees in unskilled jobs than for employees in skilled jobs.

Author(s):  
Lutz Bellmann ◽  
Hans-Dieter Gerner ◽  
Ute Leber

SummaryEven though the 2008/09 economic crisis had only minor employment effects on the German labor market, it might have affected firms’ further training and apprenticeship training behavior. From a theoretical point of view, the impact of the business cycle on firms’ training behaviour is ambiguous. There are reasons for an increase of training during a downturn (e.g., declining opportunity costs of training, fewer exit options for trained workers) as well as arguments for a decrease of training (e.g., uncertain future benefits of training). The existing empirical evidence on the relationship between training and economic downturns is relatively scarce. In particular, we are not aware of any empirical study investigating the effects of the most recent crisis on firms’ training activities in Germany. Our paper aims to fill this gap by using data from the IAB Establishment Panel, a representative German panel data set with annual information about almost 16,000 establishments. In particular, we analyzed the provision and the intensity of further training and apprenticeship training in firms which were affected by the crisis and in those which were not. Our empirical investigation revealed that the establishments, irrespective of whether or not they were hit by the economic crisis, decreased their further training and apprenticeship training efforts in 2009 compared to 2008. However, establishments directly affected by the great recession tended to reduce their training activities more often than those which were not affected. Furthermore, we found much stronger variations in the development of firms’ further training activities than in the development of their apprenticeship training.


Author(s):  
Melisa Bubonya ◽  
Deborah Cobb-Clark ◽  
Daniel Christensen ◽  
Sarah Johnson ◽  
Stephen Zubrick

This paper analyzes the effects of “shocks” to community-level unemployment expectations, induced by the onset of the Great Recession, on children’s mental well-being. The Australian experience of the Great Recession represents a unique case study as despite little change in actual unemployment rates, levels of economic uncertainty grew. This affords us the ability to examine the effects of shocks to economic expectations independent of any actual changes to economic conditions. We draw on and link data from multiple sources, including several waves of the Longitudinal Study of Australian Children (2004–2010), a consumer sentiment survey, and data on local economic conditions. Using our purpose-built data set, we estimate difference-in-differences models to identify plausibly causal effects. We find, for boys, there is no detectable effect of community-level unemployment expectations shocks on mental health. For girls, however, there are modest increases in mental health problems and externalizing behaviors, as measured by the Strengths and Difficulties Questionnaire (SDQ). We additionally find no discernible change in mother’s psychological distress as a result of expectations shocks. These results are stable after controlling for actual labor market conditions.


2019 ◽  
Vol 7 (2) ◽  
pp. 114-126
Author(s):  
John Sutherland

Purpose The purpose of this paper is to provide a human resource management perspective of the workforce adjustment strategies implemented at workplaces in Britain in response to the Great Recession. Design/methodology/approach The analysis uses an ordered probit and a series of binomial probits to examine a micro data set from the 2011 Workplace Employment Relations Study. Findings Not all workplaces were affected equally by the recession. Not all workplaces chose to implement workforce adjustment strategies consequential of the recession, although the probability of a workplace taking no action decreased the greater the adverse effect of the recession on the workplace. Most workplaces used a combination of workforce adjustment strategies. Workplaces implemented strategies more compatible with labour hoarding than labour shedding, i.e., cutting/freezing wages and halting recruitment to fill vacant posts rather than making employees redundant. Research limitations/implications What was examined was the incidence of the workforce adjustment strategies, not the number of employees affected by the implementation of a strategy. Further, what was examined were outcomes. What is not known are the processes by which these outcomes were arrived at. Originality/value This paper concurs with the findings of previous economic studies that workplaces hoarded labour, cut hours and lowered pay. In so doing, however, it provides a more detailed and more informed human resource management perspective of these adjustment strategies.


2016 ◽  
Vol 70 (1) ◽  
pp. 3-18 ◽  
Author(s):  
Adam F. Cayton

While democratic theory suggests that representatives should be willing to adjust their issue positions to adapt to new circumstances, politicians face serious political risks from “flip flopping.” How do members of Congress balance these risks? Using an original data set of district economic conditions and opinion from 2007 to 2010 and sets of repeated roll call votes, I leverage the exogenous shock of the Great Recession to explain position change on three major economic policies. I find that position change occurs in response to the constituency on final passage votes, but that partisan pressures exert greater influence, especially on procedural votes. This novel test of responsiveness has implications for the nature of policy representation and the mechanisms behind aggregate responsiveness.


AERA Open ◽  
2019 ◽  
Vol 5 (2) ◽  
pp. 233285841985508 ◽  
Author(s):  
Katharine O. Strunk ◽  
Bradley D. Marianno

This article examines how teacher collective bargaining agreements (CBAs), teacher salaries, and class sizes changed during the Great Recession. Using a district-level data set of California teacher CBAs that includes measures of subarea contract strength and salaries from 2005–2006 and 2011–2012 tied to district-level longitudinal data, we estimate difference-in-difference models to examine bargaining outcomes for districts that should have been more or less fiscally constrained. We find that unions and administrators change critical elements of CBAs and district policy during times of fiscal duress. This includes increasing class sizes, reducing instructional time, and lowering base salaries to relieve financial pressures and negotiating increased protections for teachers in areas with less direct financial implications, including grievance procedures and nonteaching duties.


2010 ◽  
Vol 54 (1) ◽  
Author(s):  
Christian Reiner

Effects of the “Great Recession” on regional unemployment rates. The case of Germany, France and the United Kingdom. Contrary to the already encompassing literature on the differentiated effects of the “Great Recession” on states, this paper takes a regional economic perspective. To answer the research question which factors might explain the spatially unequal development of unemployment rates at the regional level, a cross-section data-set is used. Percentage point increase of regional unemployment rates between 2008 and 2009 is used as the dependent variable and a set of regional and national variables as independent variables; a multiple linear regression model is estimated. After detecting spatial autocorrelation for the OLS-estimators, the model is re-estimated and a spatial error model with ML-estimators is computed. It turns out that the share of low-skilled employees has a significant positive effect on the change of regional unemployment rates. Furthermore, financial centres showed a significantly better resilience than other regional economies. Because of the strong influence of national variables in these models, separate models are estimated for France and the UK. It is shown that the same variables have quite different effects. This questions the existence of a common explanation for regional unemployment dynamics in Europe.


2018 ◽  
Vol 24 (1) ◽  
pp. 23-38 ◽  
Author(s):  
Björn Bremer

How have social democratic parties responded to the recent economic crisis? For many observers, the Great Recession and the prevalence of austerity in response to it have contributed to a crisis of social democracy in Europe. This article examines the programmatic response of social democratic parties to this crisis in 11 Western European countries. It uses an original data set that records the salience that parties attribute to different issues and the positions that they adopt with regard to these issues during electoral campaigns and compares the platforms of social democratic parties before and after 2008. For this purpose, the article disentangles economic issues into three different categories and shows that this is necessary in order to understand party competition during the Great Recession: while social democratic parties shifted to the left with regard to issues relating to welfare and economic liberalism, they largely accepted the need for budgetary rigour and austerity policies.


Author(s):  
Abel Bojar ◽  
Björn Bremer ◽  
Hanspeter Kriesi ◽  
Chendi Wang

Abstract During the Great Recession, governments across the continent implemented austerity policies. A large literature claims that such policies are surprisingly popular and have few electoral costs. This article revisits this question by studying the popularity of governments during the economic crisis. The authors assemble a pooled time-series data set for monthly support for ruling parties from fifteen European countries and treat austerity packages as intervention variables to the underlying popularity series. Using time-series analysis, this permits the careful tracking of the impact of austerity packages over time. The main empirical contributions are twofold. First, the study shows that, on average, austerity packages hurt incumbent parties in opinion polls. Secondly, it demonstrates that the magnitude of this electoral punishment is contingent on the economic and political context: in instances of rising unemployment, the involvement of external creditors and high protest intensity, the cumulative impact of austerity on government popularity becomes considerable.


Genealogy ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 51
Author(s):  
Santiago Pérez-Nievas ◽  
Marta Paradés

This article looks at the evolution of European identification during the Great Recession in four Southern European “debtor” countries and in Germany. Although the crisis initially had a negative effect on European identification in the five countries, its medium-term impact was more severe in the Southern European countries than in Germany. While we find that microeconomic variables shed little light to account for these changes, we combine multilevel institutional and identitarian approaches to explain changes in European Identification. Following the multilevel institutional argument, attitudes might depend not only on citizens perceptions of institutional performance at the European level, but also on their perceptions of institutional performance at the national level; and they can operate through two mechanisms: citizens might transfer their positive (or negative) evaluations from the national to the European level, or, alternatively, they may substitute or compensate their negative national evaluations with positive evaluations of the European level. Our results indicate that both mechanisms were at work: at the peak of the Eurozone crisis, substitution effects—especially in the countries of the South—helped sustain European identification when it was at its weakest. However, transfer effects were also relevant to explain the recovery of European identification in two of the three countries in which the latter was greatest: Germany and Portugal. Following the identitarian argument, we find that the positive effect that national identification had on European identification previous to the Great Recession, had disappeared or weakened in four of the five cases by 2014. Nonetheless, this positive relationship had been fully restored in Germany and Portugal after the Great Recession, in 2017, signalling that the fading link between the two identifications might have been only temporary, at least in these two countries.


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