scholarly journals Unemployment Impact of Product and Labor Market Regulation: Evidence from European Countries

2019 ◽  
Vol 9 (1) ◽  
Author(s):  
Céline Piton ◽  
François Rycx
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Older Workers ◽  
Fixed Effects ◽  
Positive Impact ◽  
Product Market ◽  
Employment Protection ◽  
European Countries ◽  
Large Set ◽  
The Impact

Abstract This paper provides robust estimates of the impact of both product and labor market regulations on unemployment using data from 24 European countries over the period 1998–2013. Controlling for country fixed effects, endogeneity, and a large set of covariates, results show that product market deregulation overall reduces the unemployment rate. This finding is robust across all specifications and in line with theoretical predictions. However, not all types of reforms have the same effect: deregulation of state controls and in particular involvement in business operations tend to push up the unemployment rate. Labor market deregulation, proxied by the employment protection legislation index, is detrimental to unemployment in the short run, while a positive impact (i.e., a reduction in the unemployment rate) occurs only in the long run. Analysis by sub-indicators shows that reducing protection against collective dismissals helps in reducing the unemployment rate. The unemployment rate equation is also estimated for different categories of workers. Although men and women are equally affected by product and labor market deregulations, workers distinguished by age and educational attainment are affected differently. In terms of employment protection, young workers are almost twice as strongly affected as older workers. Regarding product market deregulation, highly educated individuals are less impacted than low- and middle-educated workers.

scholarly journals Labor and Product Market Reforms and External Imbalances

2021 ◽  
Vol 21 (54) ◽  
Author(s):  
Romain Duval ◽  
Davide Furceri ◽  
João Tovar Jalles
Keyword(s):  
Labor Market ◽  
Current Account ◽  
Positive Impact ◽  
Product Market ◽  
Employment Protection ◽  
Current Account Balance ◽  
Market Reforms ◽  
Current Account Dynamics ◽  
The Impact ◽  
The Current Account

We explore the impact of major labor and product market reforms on current account dynamics using a new “narrative” database of major changes in employment protection for regular workers and product market regulation for non-manufacturing industries covering 26 advanced economies over the past four decades. Our main finding is that product market deregulation is associated with a weakening of the current account, while labor market deregulation is associated with an improvement. These effects are transitory and driven by both saving and investment responses. Labor and product market reforms both have a more positive impact on the current account balance when implemented under weak macroeconomic conditions. Our results are broadly consistent with predictions from recent DSGE models with endogenous producer entry and labor market frictions.

scholarly journals Impacts of Labor Market Institutions and Demographic Factors on Labor Markets in Latin America

2019 ◽  
Vol 19 (155) ◽  
Author(s):  
Adriana Kugler
Keyword(s):  
Labor Market ◽  
Latin American ◽  
Older Workers ◽  
Market Performance ◽  
Demographic Factors ◽  
Employment Protection ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Payroll Taxes ◽  
The Impact

This paper documents recent labor market performance in the Latin American region. The paper shows that unemployment, informality, and inequality have been falling over the past two decades, though still remain high. By contrast, productivity has remained stubbornly low. The paper, then, turns to the potential impacts of various labor market institutions, including employment protection legislation (EPL), minimum wages (MW), payroll taxes, unemployment insurance (UI) and collective bargaining, as well as the impacts of demographic changes on labor market performance. The paper relies on evidence from carefully conducted studies based on micro-data for countries in the region and for other countries with similar income levels to draw conclusions on the impact of labor market institutions and demographic factors on unemployment, informality, inequality and productivity. The decreases in unemployment and informality can be partly explained by the reduced strictness of EPL and payroll taxes, but also by the increased shares of more educated and older workers. By contrast, the fall in inequality starting in 2002 can be explained by a combination of binding MW throughout most of the region and, to a lesser extent, by the introduction of UI systems in some countries and the role of unions in countries with moderate unionization rates. Falling inequality can also be explained by the fall in the returns to skill associated with increased share of more educated and older workers.

Job Instability and Fertility Intentions of Young Adults in Europe: Does Labor Market Legislation Matter?

2020 ◽  
Vol 688 (1) ◽  
pp. 225-245
Author(s):  
Tatiana Karabchuk
Keyword(s):  
Young Adults ◽  
Labor Market ◽  
Fertility Intentions ◽  
Temporary Employment ◽  
European Social Survey ◽  
Employment Protection ◽  
European Countries ◽  
Birth Rates ◽  
Job Instability ◽  
The Impact

Total birth rates have fallen dramatically in many European countries during the last 40 years. Job and income instability caused by labor market polarization are significant drivers of declining birth rates because employment certainty and stability are crucial to childbirth planning among young adults. This article investigates the impact of job instability on the fertility intentions of young adults in Europe, focusing on employment protection legislation (EPL) in European countries. I use data from twenty-seven countries that participated in the European Social Survey in 2004 and 2010 to show that job instability measured as temporary employment, informal work, and unemployment decreases fertility intentions among European youth regardless of the EPL in the country. Unemployed young adults tend to plan less for having their first child in the countries with high EPL. Contrary to the hypotheses, multilevel modeling showed that young people in temporary or informal employment in countries with low EPL show decreases in their fertility intentions.

scholarly journals National Policies for Women Empowerment: The Impact of Policy on Women Unemployment Rate in Saudi Arabia 2010-2019

2021 ◽  
Vol 14 (4) ◽  
pp. 81
Author(s):  
Shabbab Alotaibi
Keyword(s):  
Saudi Arabia ◽  
Labor Market ◽  
Unemployment Rate ◽  
Positive Impact ◽  
Women Empowerment ◽  
National Policies ◽  
Laws And Policies ◽  
Long Term Impact ◽  
The Impact

This paper aims to explore the impact of national policies that are directed toward women empowerment in Saudi Arabia. The study focuses primarily on the impact that these policies had on women unemployment rate from the period of 2010 to 2019. During this period, the Saudi government issued multiple laws and policies to ensure a positive impact on women participation in labor market. This study assesses the short-term impact of each policy to understand the effect of policy on women’s participation in labor force. The results of this study show that there was a slight increase in women’s participation in labor market. However, we recommend that further studies should be conducted to study the long-term impact on women’s unemployment rate.

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.

Farm wages and public works

2015 ◽  
Vol 8 (1) ◽  
pp. 19-72 ◽  
Author(s):  
Kanika Mahajan
Keyword(s):  
Theoretical Model ◽  
Wage Rate ◽  
Fixed Effects ◽  
Positive Impact ◽  
Wage Growth ◽  
State Level ◽  
Random Allocation ◽  
Farm Sector ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the assumption that all districts across India would have had similar wage trends in the absence of the program. The author argues that this assumption may not be true due to non-random allocation of districts to the program’s three phases across states and different economic growth paths of the states post the implementation of NREGS. Design/methodology/approach – To control for overall macroeconomic trends, the author allows for state-level time fixed effects to capture the differences in growth trajectories across districts due to changing economic landscape in the parent-state over time. The author also estimates the expected farm sector wage growth due to the increased public work employment provision using a theoretical model. Findings – The results, contrary to the existing studies, do not find support for a significantly positive impact of NREGS treatment on private cultivation wage rate. The theoretical model also shows that an increase in public employment work days explains very little of the total growth in cultivation wage post 2004. Originality/value – This paper looks specifically at farm sector wage growth and the possible impact of NREGS on it, accounting for state specific factors in shaping farm wages. Theoretical estimates are presented to overcome econometric limitations.

EMPLOYMENT OF OLDER PEOPLE IN THE MODERN LABOR MARKET

2021 ◽  
pp. 409-418
Author(s):  
В.Ю. Бабышев ◽  
Г. А. Барышева
Keyword(s):  
Labor Market ◽  
Older People ◽  
Older Workers ◽  
Age Groups ◽  
Labor Legislation ◽  
Demographic Aging ◽  
Age Cohort ◽  
Working Age ◽  
Medical Advances ◽  
The Impact

В статье рассматривается занятость лиц пожилого возраста в условиях сорвеменных технологических, медицинских и демографических изменений. Актуальность темы исследования обусловлена демографическим старением населения, современными достижениями медицины и изменением характера трудовых операций в результате научно-технического прогресса. В данной статье проверены следующие конкурирующие гипотезы: производительность работников старших возрастных групп находится ниже уровня рентабельности из-за неуклонного ухудшения здоровья или, наоборот, ценность работников старших возрастных групп на современном рынке труда возрастает из-за повышения роли опыта, навыков и квалификации. Дополнительно проанализирован вопрос влияния систем пенсионного обеспечения на мотивацию лиц пожилого возраста к продолжению трудовой деятельности. Для проверки данных гипотез на основе статистики Организации экономического сотрудничества и развития проведен анализ общего уровня занятости, участия в рабочей силе и безработицы, а также временной и неполной занятости по нескольким возрастным группам в диапазоне 15-65 лет и старше. Для оценки динамики проанализирована ситуация на 2000 и 2019 гг. В целом сделан вывод, что количественные и качественные параметры занятости у работников старших возрастных групп уступают среднему рабочему возрасту, однако во временной динамике использование человеческого капитала лиц пожилого возраста растет. В области геронтологии рекомендовано уделять повышенное внимание улучшению здоровья возрастной когорты 65 лет и старше и изменению трудового законодательства в плане стимулирования продолжения трудовой деятельности после официального наступления пенсионного возраста. The article examines the employment of older people in the context of disrupted technological, medical and demographic changes. The relevance of the research topic is due to the demographic aging of the population, modern medical advances and changes in the nature of labor operations as a result of scientific and technological progress. In this article, the following competing hypotheses are tested: the productivity of older workers is below the level of profitability due to a steady decline in health, or vice versa, the value of older workers in the modern labor market is increasing due to the increasing role of experience, skills and qualifications. Additionally, the question of the impact of pension systems on the motivation of older people to continue working is analyzed. To test these hypotheses, based on OECD statistics, we analyzed the overall level of employment, labor force participation and unemployment, as well as temporary and underemployment for several age groups in the range of 15-65+ years. To assess the dynamics, the situation for 2000 and 2019 was analyzed. In general, the author concludes that the quantitative and qualitative parameters of employment of older people are inferior to the average working age, but over time, the use of the human capital of older people is growing. In the field of gerontology, it is recommended to pay increased attention to improving the health of the 65+ age cohort and changing labor legislation in order to stimulate the continuation of work.

scholarly journals The impact of public research expenditure on agricultural productivity: evidence from developed European countries

2021 ◽  
pp. 55-60
Author(s):  
Alessandro Magrini
Keyword(s):  
United States ◽  
Fixed Effects ◽  
Agricultural Research ◽  
Agricultural Productivity ◽  
European Countries ◽  
United States Department ◽  
Public Research ◽  
Food And Agriculture Organization ◽  
The Impact ◽  
Research Expenditure

The objective of this paper is to assess the impact of public research expenditure on agricultural productivity in developed European countries. Our research provides original evidence, making possible a comparison with existing studies focused on United States of America (USA). We apply a fixed effects Gamma distributed-lag model to yearly data in 1970-2016 sourced from the United States Department of Agriculture (USDA), the Organisation for Economic Cooperation and Development (OECD), and the Food and Agriculture Organization (FAO). In our results, public research expenditure has a significant impact on agricultural productivity up to 35 years, with peak at 17 years and long-term elasticity equal to 0.172. Based on our model, the countries with the highest internal rate of return of agricultural research expenditure resulted Germany, Spain, France and Italy (24.5-25.2%), followed by Netherlands, United Kingdom, Denmark, Greece, Belgium and Luxembourg (20.5-21.8%). However, only Germany, Denmark and Greece increased agricultural research expenditure in recent years. The estimated internal rates of return are in line with the ones reported by existing studies on USA, and they suggest that developed European countries, just like USA, could benefit from research investments in Agriculture to a much greater extent than they currently do.

scholarly journals Patterns of Interrelationships between Inflation, R&D, Innovation, and Economic Growth: Evidence from Central and Eastern European Countries

2020 ◽  
Vol 22 (2) ◽  
pp. 5-33
Author(s):  
Ljubivoje Radonjić ◽  
◽  
Nevena Veselinović ◽  
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Primary Objective ◽  
Output Growth ◽  
European Countries ◽  
Eastern European ◽  
Innovation Activities ◽  
Private And Public ◽  
Eastern European Countries ◽  
The Impact

The primary objective of the article is to examine the nexus between inflation, R&D, patents, and economic growth within a group of Central and Eastern European countries (CEECs). The examination is conducted in two parts. First, the impact of total R&D expenditures on economic growth is observed, as well as the influence of growth on private and public R&D investments. Second, the conversion from private and public R&D investment to innovation, measured by the number of patents, is observed. Throughout the analysis, economic growth and inflation are representative of macroeconomic stability. The outcomes of the panel auto-regressive distributed lag estimation indicate that total R&D expenditures are essential and positively significant for economic growth in the observed countries. The results also show that output growth has a remarkably positive impact on generating private R&D expenditures. Such an influence is also found, but at a weaker level, in the case of public R&D expenditures. In this part of the analysis, inflation has demonstrated a harmful influence on R&D expenditures. The results of the second part indicate that public and private R&D expenditures, at a significant level, generate innovation activities, while the impact of inflation has proven to be unimportant.

scholarly journals Institutional determinants of regional diversity of labor market in Poland

Equilibrium ◽  
2015 ◽  
Vol 10 (1) ◽  
pp. 129
Author(s):  
Beata Woźniak-Jęchorek
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Gender Gap ◽  
Institutional Perspective ◽  
Regional Diversity ◽  
Institutional Determinants ◽  
The Difference ◽  
Employment Rates ◽  
And Gender ◽  
The Impact

The article focuses on regional diversity of the Polish Labor Market from institutional perspective. The Polish Labor Market is geographically diverse in terms of unemployment and employment rates, and also in terms of economic development. At the end of 2013 the difference between the lowest and the highest unemployment rate in the Polish regions was 12.1% (Wielkopolska located in the West Poland has unemployment rate of 9.6% and Warmia - Mazury in the East has unemployment of 21.7%). The question arises whether this difference comes from the structural or institutional sources. The paper describe the character of Polish Labor Market, whereas in the second part, it traces the impact of institutional variables such as real wage, Kaitz index and Gender gap on the regional unemployment rate in 2002–2012 in Poland.

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