scholarly journals Risk, Recessions and Resilience: Towards Sustainable Local Labor Markets through Employment Portfolio Analysis

2021 ◽  
Vol 13 (14) ◽  
pp. 7926
Author(s):  
Bharman Gulati ◽  
Stephan Weiler
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Positive Impact ◽  
The United States ◽  
Local Economy ◽  
Local Labor Markets ◽  
Local Labor Market ◽  
Business Survival ◽  
Trade Offs ◽  
New Business

This paper explores the role of local labor market dynamics on the survival of new businesses. The characteristics of the local labor market are likely to influence the survival of new businesses, the level of entrepreneurship, and the resilience of the regional economy. We apply portfolio theory to evaluate employment-based and income-based measures of risk-and-return trade-offs in local labor markets on new business survival in the United States. Our results show that volatility in local labor markets has a positive impact on new business survival, especially in Metropolitan Statistical Areas. The results are robust across different timeframes, including during economic downturns, thus highlighting the contribution of new businesses in developing the resilience of the local economy, and further promoting sustainable regional economic development.

Movilidad laboral geográfica en un antiguo enclave minero. La inversión de un mercado de trabajo local

2016 ◽  
Vol 11 (18) ◽  
Author(s):  
Camilo Contreras Delgado
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Economic History ◽  
Labor Mobility ◽  
Work Place ◽  
Local Labor Markets ◽  
Local Labor Market ◽  
Local Factors ◽  
The Social ◽  
History Of

Resumen:Este artículo examina los fa c t o res internos y externos a una localidad que son copartícipes en la estructuración y reestructuración de su mercado de trabajo local. A partir de la revisión de la historia social y económica del lugar, se destaca su tránsito de enclave minero a lugar de residencia de mineros y trabajadores de maquiladoras. En este caso, se presenta la constitución de los mercados de trabajo locales como un resultado del encuentro de las condiciones del lugar de residencia de los trabajadores y el lugar donde se encuentra el centro de trabajo. De aquí que la movilidad laboral geográfica aparezca como una de las tácticas de los sujetos ante una situación de desempleo.Palabras clave: Mercado de trabajo, Minería, Maquiladoras, Mineros, Movilidad laboral, Desempleo.Abstract:This article examines the internal and external local factors shaping the structuring and restructuring of a local labor market. By reviewing the social and economic history of the community, this article underlines its transition from a mining setting to a residence place for miners and maquila workers. In this case, the constitution of local labor markets is presented as a result of the condition encounter of both workers residence place and the location of the work place. This is a reason explaining why geographical labor mobility comes to be an actor tactic to face unemployment.Key words: Labor market, Mining, Export-oriented industry, Miners, Labor mobility, Unemployment.

scholarly journals Place Based Policies with Unemployment

2013 ◽  
Vol 103 (3) ◽  
pp. 238-243 ◽  
Author(s):  
Patrick Kline ◽  
Enrico Moretti
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Housing Market ◽  
Job Creation ◽  
Local Labor Markets ◽  
Local Labor Market ◽  
Simple Search

We develop a stylized model of frictional local labor markets with the goal of studying the efficiency of unemployment differences across areas. The model adapts the widely used Diamond-Mortensen-Pissarides framework to a local labor market setting with a competitive housing market. The result is a simple search analogue of the classic Roback model that provides a tractable environment for studying the effects of local job creation efforts.

scholarly journals The China Syndrome: Local Labor Market Effects of Import Competition in the United States

2013 ◽  
Vol 103 (6) ◽  
pp. 2121-2168 ◽  
Author(s):  
David H Autor ◽  
David Dorn ◽  
Gordon H Hanson
Keyword(s):  
United States ◽  
Labor Market ◽  
Labor Markets ◽  
Labor Force Participation ◽  
The United States ◽  
Manufacturing Industries ◽  
Import Competition ◽  
Local Labor Markets ◽  
Industry Specialization ◽  
Market Effects

We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization and instrumenting for US imports using changes in Chinese imports by other high-income countries. Rising imports cause higher unemployment, lower labor force participation, and reduced wages in local labor markets that house import-competing manufacturing industries. In our main specification, import competition explains one-quarter of the contemporaneous aggregate decline in US manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in more trade-exposed labor markets. (JEL E24, F14, F16, J23, J31, L60, O47, R12, R23)

scholarly journals Tradability and the Labor‐Market Impact of Immigration: Theory and Evidence From the United States

Econometrica ◽  
2020 ◽  
Vol 88 (3) ◽  
pp. 1071-1112 ◽  
Author(s):  
Ariel Burstein ◽  
Gordon Hanson ◽  
Lin Tian ◽  
Jonathan Vogel
Keyword(s):  
United States ◽  
Labor Market ◽  
The United States ◽  
Simple Condition ◽  
Foreign Born ◽  
Real Wages ◽  
Local Labor Market ◽  
Relative Wages ◽  
Theoretical Mechanism ◽  
Using Data

In this paper, we study how occupation (or industry) tradability shapes local labor‐market adjustment to immigration. Theoretically, we derive a simple condition under which the arrival of foreign‐born labor into a region crowds native‐born workers out of (or into) immigrant‐intensive jobs, thus lowering (or raising) relative wages in these occupations, and we explain why this process differs within tradable versus within nontradable activities. Using data for U.S. commuting zones over the period 1980–2012, we find—consistent with our theory—that a local influx of immigrants crowds out employment of native‐born workers in more relative to less immigrant‐intensive nontradable jobs, but has no such effect across tradable occupations. Further analysis of occupation labor payments is consistent with adjustment to immigration within tradables occurring more through changes in output (versus changes in prices) when compared to adjustment within nontradables, thereby confirming our model's theoretical mechanism. We then use the model to explore the quantitative consequences of counterfactual changes in U.S. immigration on real wages at the occupation and region level.

The Local Labor Market Effects of Korean Automotive Investments in the United States

2020 ◽  
pp. 016001762096484
Author(s):  
Eunbi Kim
Keyword(s):  
Labor Market ◽  
Trade Agreement ◽  
The United States ◽  
Competitive Strategies ◽  
Local Labor Market ◽  
Market Effects ◽  
The North ◽  
Japanese Firms ◽  
Employment Rates ◽  
Japanese Fdi

This study investigates the local labor market effects of automotive foreign direct investment (FDI) in Alabama in the wake of the North American Free Trade Agreement (NAFTA). Of particular interest is the effect of FDI originating from a nontraditional source country in comparison to investments by European and Japanese firms. Using 2005–2011 American Community Survey (ACS) data, we compare changes in employment rates and median weekly wages in three area types: areas with Korean FDI, areas with German and Japanese FDI and areas without FDI. Results show that Korean FDI leads to increased employment rates but decreased median weekly wages. We attribute these findings to price competitive strategies of Korean firms.

The Differential Impact of New Product Development “Make/Buy” Choices on Immediate and Future Product Quality: Insights from the Automobile Industry

2017 ◽  
Vol 81 (6) ◽  
pp. 1-23 ◽  
Author(s):  
Kartik Kalaignanam ◽  
Tarun Kushwaha ◽  
Tracey A. Swartz
Keyword(s):  
Product Development ◽  
Product Quality ◽  
New Product Development ◽  
Automobile Industry ◽  
Positive Impact ◽  
New Product ◽  
The United States ◽  
Trade Offs ◽  
Using Data ◽  
The Impact

This article examines the impact of new product development (NPD) “make/buy” choices on product quality using data from the automobile industry. Although the business press has lamented that NPD outsourcing compromises product quality, there is no systematic evidence to support or refute this assertion. Against this backdrop, this study tests a contingency model of the impact of NPD make/buy decisions on immediate and future product quality. The hypotheses are tested using data on NPD make/buy choices of 173 models of 12 automobile firms in the United States between 2007 and 2014. The authors find that whereas NPD buy has a more positive impact on immediate product quality, NPD make has a more positive impact on future product quality. Furthermore, the immediate product quality impact of NPD buy is stronger when (1) technologies are more complex and (2) firm NPD capability is higher. In contrast, the future product quality impact of NPD make is stronger when (1) there is postlaunch adverse feedback and (2) firm NPD capability is higher. The study highlights the complex trade-offs associated with NPD make/buy decisions and offers valuable insights on how firms could manage these decisions.

Immigration and Labor Market Outcomes in U.S. Metropolitan Areas

2019 ◽  
Vol 63 (4) ◽  
pp. 630-652
Author(s):  
Allen Hyde ◽  
Michael Wallace
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Market Outcomes ◽  
Economic Restructuring ◽  
The United States ◽  
Earnings Inequality ◽  
Demand Side ◽  
Least Squares Regression ◽  
Market Outcomes ◽  
The Relationship

Two broad orientations have motivated scholarship on the relationship between immigration and labor market outcomes in the United States. The first, the supply-side perspective, often focuses on how immigration affects a variety of outcomes such as unemployment, casualization, and earnings inequality. The second, the demand-side perspective, generally contends that these labor market outcomes result mainly from economic restructuring that subsequently attracts immigrants to labor markets. Previous studies have often reached divergent conclusions due to differing assumptions about the direction of causality in these relationships. In this paper, we use three-stage least squares regression, a technique that allows for nonrecursive relationships, to adjudicate the direction of causality between immigration and labor market outcomes. Using 2010 data for 366 U.S. metropolitan statistical areas, we find support for the demand-side perspective, or that economic restructuring results in higher unemployment, casualization, and earnings inequality, which subsequently increases levels of immigration in metropolitan labor markets.

scholarly journals Monopsony Power and Guest Worker Programs

2019 ◽  
Vol 64 (4) ◽  
pp. 540-565 ◽  
Author(s):  
Eric M. Gibbons ◽  
Allie Greenman ◽  
Peter Norlander ◽  
Todd Sørensen
Keyword(s):  
United States ◽  
Labor Market ◽  
Labor Markets ◽  
Market Competition ◽  
The United States ◽  
Guest Workers ◽  
Guest Worker ◽  
Full Extent ◽  
Monopsony Power ◽  
Program Data

Guest workers on visas in the United States may be unable to quit bad employers due to barriers to mobility and a lack of labor market competition. Using H-1B, H-2A, and H-2B program data, we calculate the concentration of employers in geographically defined labor markets within occupations. We find that many guest workers face moderately or highly concentrated labor markets, based on federal merger scrutiny guidelines, and that concentration generally decreases wages. For example, moving from a market with a Herfindahl-Hirschman Index of zero to a market comprised of two employers lowers H-1B worker wages approximately 10%, and a pure monopsony (one employer) reduces wages by 13%. A simulation shows that wages under pure monopsony could be 47% lower, suggesting that employers do not use the full extent of their monopsony power. Enforcing wage regulations and decreasing barriers to mobility may better address issues of exploitation than antitrust scrutiny alone.

scholarly journals Local Labor Market Fluctuations and Physical Activity among Adults in the United States, 1990–2009

2012 ◽  
Vol 2012 ◽  
pp. 1-7 ◽  
Author(s):  
Ruopeng An ◽  
Junyi Liu
Keyword(s):  
Physical Activity ◽  
United States ◽  
Labor Market ◽  
Unemployment Rate ◽  
Fixed Effects ◽  
The United States ◽  
Moderate Intensity ◽  
Future Research ◽  
Economic Downturn ◽  
Local Labor Market

Being physically active is a key health promotion strategy. The late-2000s economic downturn, labeled the “Great Recession,” could have profound impact on individuals' health behaviors including engagement in physical activity. We investigated the relationship between local labor market fluctuations and physical activity among adults 18 years and older in the United States by linking individual-level data in the Behavioral Risk Factor Surveillance System 1990–2009 waves to unemployment rate data by residential county and survey month/year. The association between labor market fluctuations and physical activity was examined in multivariate regressions with county and month/year fixed effects. Deteriorating labor market conditions were found to predict decreases in physical activity—a one percentage point increase in monthly county unemployment rate was on average associated with a reduction in monthly moderate-intensity physical activity of 0.18 hours. There was some preliminary evidence on the heterogeneous responses of physical activity to local labor market fluctuations across age and income groups and races/ethnicities. Findings of this study suggest special attentions to be paid to the potential detrimental impact of major recessions on physical activity. This correlational study has design and measurement limitations. Future research with longitudinal or experimental study design is warranted.

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