scholarly journals Dual-Labor Market and Unemployment Compensation

ECONOMICS ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 21-35
Author(s):  
Taro Abe
Keyword(s):  
Labor Market ◽  
Wage Rate ◽  
Competitive Market ◽  
Relative Wage ◽  
Dual Labor Market ◽  
Unemployment Compensation ◽  
Imperfectly Competitive ◽  
The Impact ◽  
Demand Constraint ◽  
Economic Regime

AbstractThis paper discusses the impact of unemployment compensation on the employment and wages of regular and non-regular labor in a dual-labor market. The model in this paper assumes an effective demand constraint and an imperfectly competitive market. The results obtained are as follows. An increase in unemployment compensation increases the wages of regular labor to maintain its productivity. However, this temporarily decreases the employment of regular labor, so that the productivity and wages of non-regular labor decrease. The result is an increase in the relative wage rate of regular labor and the relative amount of non-regular labor employed. This result is independent of any economic regime. In terms of the impact on employment volume, the existence of two regimes, one wage-driven and one profit-driven, is confirmed. However, the effect on employment is weaker if unemployment compensation is financed by taxing profits.

Optimal Government Policies Related to Unemployment

2017 ◽  
Vol 47 (1) ◽  
pp. 87-111
Author(s):  
Chia-Hui Lu
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Wage Rate ◽  
Optimal Allocation ◽  
Government Policies ◽  
Unemployment Compensation ◽  
Heterogeneous Labor ◽  
The Government ◽  
Hiring Costs

This article studies the optimal government policies related to unemployment in a frictional labor market. To achieve the optimal allocation, we find that the government should not issue unemployment compensation or subsidies for hiring costs. Moreover, as both firms and households experience disastrous consequences related to the minimum wage, the government should not intervene in the labor market to influence the wage rate and should not set any minimum wage. What the government can do is to make appropriate expenditures on matching efficacy. Furthermore, considering heterogeneous labor abilities in the model does not change our main finding.

scholarly journals Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19

SERIEs ◽  
2021 ◽  
Author(s):  
Cristina Lafuente ◽  
Raül Santaeulàlia-Llopis ◽  
Ludo Visschers
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Dual Labor Market ◽  
Total Employment ◽  
Temporary Contracts ◽  
The Great Recession ◽  
Time Work ◽  
Short Time ◽  
Permanent Workers ◽  
The Impact

AbstractWe investigate the behavior of aggregate hours supplied by workers in permanent (open-ended) contracts and temporary contracts, distinguishing changes in employment (extensive margin) and hours per worker (intensive margin). We focus on the differences between the Great Recession and the start of the COVID-19 Recession. In the Great Recession, the loss in aggregate hours is largely accounted for by employment losses (hours per worker did not adjust) and initially mainly by workers in temporary contracts. In contrast, in the early stages of the COVID-19 Recession, approximately sixty percent of the drop in aggregate hours is accounted for by permanent workers that do not only adjust hours per worker (beyond average) but also face employment losses—accounting for one-third of the total employment losses in the economy. We argue that our comparison across recessions allows for a more general discussion on the impact of adjustment frictions in the dual labor market and the effects policy, in particular the short-time work policy (ERTE) in Spain.

scholarly journals The impact of the new labor law in China: new hiring strategies for foreign firms?

2010 ◽  
Vol 6 (2) ◽  
pp. 527-540 ◽  
Author(s):  
Gayle Allard ◽  
Marie-José Garot
Keyword(s):  
Labor Market ◽  
Labor Law ◽  
European Countries ◽  
Foreign Firms ◽  
Dual Labor Market ◽  
Foreign Investors ◽  
Work Relationship ◽  
The Impact ◽  
New Strategies

China's new labor law transforms the formal work relationship to standards that are similar to many modern European countries. If it is consistently enforced, it could mean higher inflation, a dual labor market and higher inequalities for China, and new strategies for foreign investors.

Shortage of Skills in the Labor Market: Limited Supply, Lack of Demand, or False Signals from Employers?

2004 ◽  
pp. 76-94 ◽  
Author(s):  
V. Gimpelson
Keyword(s):  
Labor Market ◽  
Competitive Market ◽  
Skilled Workers ◽  
Industrial Enterprises ◽  
Russian Industry ◽  
General Skills ◽  
Limited Supply

The article discusses the issue of shortage of skills in the Russian industry. Using microdata from a survey of industrial enterprises, the author confirms that most of employers complain of difficulties in hiring and attaching skilled workers. In case of mass occupations, this shortage relates mostly to low efficient enterprises, which are unable or unwilling to pay competitive market going wage. More efficient and better paying firms are less likely to face shortage of general skills on the labor market but may face limited supply of specific skills.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

Income and Life Quality of Farmer Households Suffering Social Exclusion

2012 ◽  
pp. 63-87
Author(s):  
Anh Mai Ngoc ◽  
Ha Do Thi Hai ◽  
Huyen Nguyen Thi Ngoc
Keyword(s):  
Labor Market ◽  
Statistical Method ◽  
Social Exclusion ◽  
Central Government ◽  
Life Quality ◽  
Economic Aspect ◽  
Local Authorities ◽  
The Impact

This study uses descriptive statistical method to analyze the income and life qual- ity of 397 farmer households who are suffering social exclusion in an economic aspect out of a total of 725 households surveyed in five Northern provinces of Vietnam in 2010. The farmers’ opinions of the impact of the policies currently prac- ticed by the central government and local authorities to give them access to the labor market are also analyzed in this study to help management officers see how the poli- cies affect the beneficiaries so that they can later make appropriate adjustments.

The Impact of the Public Expenditure Cuts Policy on the Labor Market in Vietnam

2012 ◽  
pp. 22-46
Author(s):  
Huong Nguyen Thi Lan ◽  
Toan Pham Ngoc
Keyword(s):  
Labor Market ◽  
Computable General Equilibrium ◽  
Impact Evaluation ◽  
Public Expenditure ◽  
Computable General Equilibrium Model ◽  
Living Standard ◽  
Input Output ◽  
Policy Makers ◽  
The Public ◽  
The Impact

The purpose of this study is to evaluate the impact of public expenditure cuts on employment and income to support policies for the development of the labor mar- ket. Impact evaluation is of interest for policy makers as well as researchers. This paper presents a method – that is based on a Computable General Equilibrium model – to analyse the impact of the public expenditure cuts policy on employment and income in industries and occupations in Vietnam using macro data, the Input output table, 2006, 2008 and the 2010 Vietnam Household Living Standard Survey.

Evaluating the return on religious capital in the Russian labor market

2020 ◽  
Vol 19 (9) ◽  
pp. 1671-1694
Author(s):  
R.M. Mel'nikov
Keyword(s):  
Labor Market ◽  
Religious Identity ◽  
Work Experience ◽  
Church Attendance ◽  
Satisfaction With Life ◽  
Positive Impact ◽  
Religious Commitment ◽  
Religious Faith ◽  
Religious Capital ◽  
The Impact

Subject. The article addresses the impact of religious confession on wages and the likelihood of unemployment in Russia. Objectives. The aim is to test the hypothesis that religious faith and high church attendance are accompanied by an increase in employment earnings. Methods. Using the Russian Longitudinal Monitoring Survey data, I estimate the Mincer's extended equation with variables that characterize the respondent’s religious commitment. To assess the impact of religious identity and the activity rate of attendance at religious services on the likelihood of unemployment and life satisfaction, I use probit models. Results. The estimates demonstrate that the Russian labor market rewards men with moderate and high degree of religious commitment; their wage growth reaches seventeen percent of the level of non-believers with comparable education and work experience. However, faithful Muslim women are employed in the lowest paid areas. Religious faith and regular church attendance have a positive effect on satisfaction with life (significant for Orthodox Christian women). Conclusions. Positive impact of religious capital on income and employment can be attributed to the development of business qualities that are rewarded in the labor market, the mutual support of religious network participants. Therefore, it possible to consider religious capital, along with educational capital and health capital, as a component of human capital and a factor of socio-economic development.

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