scholarly journals Estimates of the Effects of Emigration on the Labour Market

2019 ◽  
Vol 49 (1) ◽  
pp. 12-19
Author(s):  
Gindra Kasnauskienė ◽  
Tomas Šiaudvytis

Migration flows have increased since the EU enlargement in 2004. In many European countries, they are sufficiently large to have significant economic effects. These effects are among the most popular topics in public debate. In this paper, the authors attempt to quantify the effects of emigration on wages, welfare and in­come redistribution in the selected new EU member states. Emigration reduces labour supply and in­creases national wage generating income redistribu­tion from the owners of capital to the labour force. Emigration also results in welfare loss as emigrants no longer produce output in their home country. The au­thors of the article adopt a simple theoretical model of the labour market which allows quantifying these effects through the use of basic economic and demo­graphic statistics. The research on the effects of emigration on wages uses a simple supply and demand framework, where labour demand is derived from a marginal pro­ductivity condition using the Cobb–Douglas produc­tion function. The authors also assume perfectly ine­lastic labour supply, in case of which the effect of emigration on wages is entirely determined by labour demand. Wage elasticity estimation uses the fact that the capital share parameter in the Cobb–Douglas function also measures labour demand elasticity. This property of the production function allows the au­thors to estimate the elasticity using national ac­counts data. The estimates of labour demand (wage) elas­ticity for Lithuania range from 0.44 to 0.55, implying that due to emigration wages might have increased from 0.75 to 0.94 per cent a year, on average. In the period of 2001–2008, emigration might have resulted in a wage increase of 5.9 to 7.3 per cent. However, these estimates require caution as the beginning of the period was characterised by high unemployment. Emigration loss amounts to 0.4 per cent of GDP, and 2.8 per cent of GDP is redistributed to labour every year. Due to the poor quality of migration data, the impact of emigration on wages, welfare and income redistribution in other countries is most likely signifi­cantly underestimated. The assumption that the share of declared emigration is similar across countries would imply that those affected by emigration the most are Slovenia, Czech Republic and Estonia.

2020 ◽  
Vol 64 (9) ◽  
pp. 71-86
Author(s):  
Barbara Kryk

There is huge controversy around the issue of the impact of the 500+ benefit program on the labour market in Poland, especially on the professional activity of women. The effects in this area are not only relevant for the country but also for the European Union as a whole, as they determine the achievement of the employment goal of the Europe 2020 strategy. It was, therefore, decided to examine this issue more closely. The main goal of the article is to investigate how the 500+ benefit affects the supply of female labour force and the achievement of the employment target of the Europe 2020 strategy. The specific objectives: (1) what were the goals of the Polish government in the area of the labour market at the beginning of the implementation of the EU strategy, and what goals are currently in the Strategy for Responsible Development (SOR)? (2) what were the dynamics of female labour supply compared to the changes in the labour market ? (3) what is the significance of the 500+ program for the trends in the labour market ? (4) what loss (if any) for the economy resulted from the reduction of women’s employment generated? The subject of the study is women’s labour supply/employment, and the subject of research is the Polish economy. To achieve the study goals, the desk research method, time series and indicator analysis, and GDP gaps were used. The research period is 2010-2019, with particular emphasis on the period after the introduction of the benefit in 2016. The research conducted shows that adverse changes in the labour force supply of women caused by the 500+ benefits, were offset by the return to the labour market of previously unemployed or inactive people. Thus, the strategic goal related to employment was achieved.


2021 ◽  
Vol 572-573 (11-12) ◽  
pp. 24-31
Author(s):  
Łukasz Arendt ◽  
Wojciech Grabowski

The paper studies upgrading patterns between secondary and primary segments in Polish labour market, with reference to the Segmented Labour Market theory. The type of contact (permanent vs. fixed-term) and wage distribution were used within one framework to define these labour segments. The parameters of binary choice model, based on Labour Force Survey microdata, were estimated to calculate the probabilities of shift from secondary to primary segment, and to identify supply and demand-side determinants of this upgrading. The results are, in general, in line with the trap hypothesis, pointing out to limited chances of upward shift from secondary to primary labour segment. However, this upward mobility has increased in recent years, being a result of changes in real (measured by lowering unemployment rate) and institutional sphere of the Polish labour market. Individual’s age, education attainment, propensity to invest in human capital, as well as the size of an enterprise appeared to be the most important divers of inter-segments upgrading. Moreover, regional as well as sectoral differences in probability of upgrading were identified – this probability was higher in the case of workers living in regions with large agglomerations and close proximity to the German labour market.


2019 ◽  
pp. 199-212
Author(s):  
Paul Bivand

The chapter begins by identifying the theoretical roots of labour market concepts, notably the Phillips Curve relating unemployment and inflation. It then presents the definitions of “employment” and “unemployment” developed by the International Labour Organisation. These are measured by the quarterly Labour Force Survey, which provides not just simple counts but also flows between these categories, here presented graphically. One problem is that localised unemployment data use different definitions from the national headline rate, but a larger problem is that in all measures individuals must be counted as either employed or unemployed, when increasing numbers of workers work fewer or more hours than they wish, sometimes on variable hours contracts or as insecure sub-contractors in the “gig economy”. These new forms of work, generally disadvantaged, make gathering reliable data harder, and the chapter ends by discussing earnings data, and measuring the impact of minimum wage legislation.


1992 ◽  
Vol 24 (12) ◽  
pp. 1781-1797 ◽  
Author(s):  
D E Fuller

The importance of integrating policies concerned with the demand and supply of labour within growing regions has long been recognized. However, there are important theoretical deficiencies associated with orthodox methods. In the traditional approach to operational urban and regional models it is claimed that the relationship between labour demand and labour supply is functional and one sided, that is, the growth of labour demand causes population growth and leads to an assured level of labour supply. However it is argued that in the development of regional labour-force policies aimed at recognized objectives, estimates of the number and characteristics of persons available to the labour force are at least as important as estimates of the structure of labour demand. A change in the traditional theoretical framework is therefore necessary to allow for the influence of a particular population structure upon the supply of labour—in aggregate as well as to different occupational submarkets. Presentation of a more independent treatment of methods aimed at estimating the ‘availability’ (and the ‘requirements’) of labour also allows for the possibility, and consequences, of imbalance in the labour market to be recognized.


2004 ◽  
Vol 10 (1) ◽  
pp. 106-121 ◽  
Author(s):  
Daniela Del Boca ◽  
Silvia Pasqua

Recent social and labour market policies in Italy have altered childcare costs and availability, increased opportunities for part-time jobs and flexibility in working hours and extended parental leave. This analysis focuses on the impact of these changes on the labour supply of mothers in Italy in comparison with other countries. Data from Eurostat and the OECD, and empirical results from the Italian Survey on Household Income and Wealth (SHIW) and from the European Community Household Panel (ECHP) are presented. The data show how the situation of Italian mothers is not dissimilar from that of mothers in other southern European countries, in particular Spain and Greece.


2015 ◽  
Vol 3 (1) ◽  
pp. 35-42
Author(s):  
Paulina Szmielińska-Pietraszek ◽  
Wioletta Szymańska

AbstractOn today's labour markets, the basic characteristics of the quality of the labour force is knowledge, qualifications, skills and experience possessed by it. Today, employers are looking for employees with high interpersonal competences, manners, responsible, hard-working, independent, honest and having the ability to learn quickly. For this, as an asset, they add the higher education, preferably directional, creativity and experience. The taken research area is characterized by economic lag in comparison with Gdańsk agglomeration area, as well as with other regions. In the article the reference was made to the declared needs of employers towards future employees, based on interviews conducted in 101 entities of the city of Słupsk and Słupsk county. The main aim of the research was to determine the usefulness of geographic knowledge for the local labour market. And thus indicating the possibility of increasing the attractiveness of geographical graduates in the labour market. Among the needs of employers of Słupsk labour market in accordance with the overall national trend, there is a large deficit of soft competencies, but also, among others, the gap typically professional related to information technology and engineering skills have been diagnosed. There has been a large gap identified in the ability to apply the knowledge (academic) in practical activities, which is called by the employers 'the professional experience'. In contrast, the studies on the usefulness of (the attractiveness of the labour market) competencies that are possible to learn while studying geography, showed the particular importance, valuable for the modern labour market skills of searching, collecting and processing of information. Currently in Poland, even in conditions of high unemployment existing mismatch between qualification and professional structure of supply and demand for labour can be observed. In the labour market, the presence is noted at the same time, the deficit and surplus professions and employers tend to have difficulty in recruiting people with specific skills and vocational skills. Not innovative small entities (which predominate in the structure of entities, inter alia, in Słupsk local labour market) are not able to take over the education of strictly professional competences due to a lack of capital. The role of practical education courses for universities is visible here. They are accumulating equipment and supplies for practical training which may in a flexible way try to respond to changing economic conditions.


Author(s):  
Emmanuel Orkoh ◽  
Phillip F. Blaauw ◽  
Carike Claassen

Background: The relationship between spousal wages and hours of work, including the phenomenon of a spousal premium or penalty, is well documented in the literature. However, there is limited information on the situation in developing countries where labour market rigidities and cultural norms are factors in the division of labour between husbands and wives.Aim: This article addresses the research gap by analysing spousal wages among couples and the cross-wage effect of spousal time allocation.Setting: Households in Ghana, where sociocultural norms largely influence the role of men and women constituted the context of the study.Methods: The instrumental variable Tobit estimation regression was used to analyse pooled data from three Ghana Living Standard Surveys.Results: The results reveal elements of a working spousal wage premium (due to positive selection rather than specialisation) for both men and women regardless of their ethnic affiliations. The analysis of the effect of wage on spousal hours of work also suggested complementarity in employment and household labour decisions between couples.Conclusion: Men’s and women’s participation in household production significantly improves each other’s labour market participation and labour supply. These results corroborate the evidence of a wage premium in the literature. We recommend that government should promote equitable wage rates in the labour market and prioritise policies such as paternal leave which could encourage men to participate in household production and indirectly promote women’s labour force participation.


2005 ◽  
Vol 29 (2) ◽  
pp. 320-331
Author(s):  
Arthur Donner ◽  
Fred Lazar

This paper incorporates a role for expectations in the short-run behavior of labour supply decision, presents a theory introducing labour market expectations as a variable influencing labour supply, and discusses the relative merits of the expectations model vis-à-vis the traditional model using the empirical results derived in this work.


2019 ◽  
Vol 4 (1) ◽  
pp. 37
Author(s):  
Marija Rok

Hardly anybody would agree that the labour market satisfactorily meets the needs of the tourism and hospitality industry (THI). The THI worldwide faces the shortage of skilled labour force and the Slovenian THI is no exception. The problem persists in spite of various recruitment measures of employers, e.g. engaging migrant workforce, student work, black market, etc. The first aim of the paper was to explore the workforce needs of the THI with an emphasis on its unmet demands. The desk research revealed the mismatch between the supply and demand of the workforce on lower levels. Since the system of the National vocational qualifications (NVQ) is presumed beneficial for deficiencies of the labour market the second aim of the article was to explore the current state of the NVQ system in Slovenia and the selection of the existing NVQs in the THI in order to find out whether the number and structure of awarded NVQ certificates improved structural imbalances on the TH labour market. The author came to the conclusion that all forms of lifelong learning might contribute to improve the qualification structure of the labour force in the country provided that the employers overcome their distrust of the credibility and quality of the NVQs.


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