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1 – 10 of 76
Article
Publication date: 1 October 2018

Aysit Tansel and Zeynel Abidin Ozdemir

The purpose of this paper is to explore the long-run relationship between unemployment rate (UR) and labor force participation rate (LFPR) for men and women in Canada. Given that…

Abstract

Purpose

The purpose of this paper is to explore the long-run relationship between unemployment rate (UR) and labor force participation rate (LFPR) for men and women in Canada. Given that there are differences in the URs and participation rates of men and women, the authors perform separate analysis for them also.

Design/methodology/approach

The authors use co-integration analysis to investigate the existence of a long-run relationship between UR and LFPR in Canada using time series monthly data for the past 40 years.

Findings

The finding that there is long-run relationship between UR and LFPR leads the authors to doubt the pertinence of the unemployment invariance hypothesis for Canada. The authors further find evidence for added-worker effect for men and discouraged-worker effect for women in Canada and the authors elaborate on the possible explanations for this seemingly contradictory finding.

Practical implications

The lack of support for the unemployment invariance hypotheses implies that changes in the participation rate which may be due to aging population, policies of early retirement or constraints on working time will affect the UR in the long run.

Originality/value

This paper investigates the unemployment invariance hypothesis in Canada to come up with policy implications about long-run UR. The authors further elaborate on the possible explanations for the added-worker effect for men and the discouraged-worker effect for women that the authors find in this study.

Details

International Journal of Manpower, vol. 39 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 25 May 2021

Francesco Nemore, Rocco Caferra and Andrea Morone

Our main purpose is to test the unemployment invariance hypothesis in Italy.

1805

Abstract

Purpose

Our main purpose is to test the unemployment invariance hypothesis in Italy.

Design/methodology/approach

This paper provides an empirical investigation of the unemployment and labor force participation in Italy.

Findings

Cointegration analysis results strongly suggest a clear long-run relationship between unemployment and labor force participation revealing a persistent and general added worker effect.

Originality/value

Our results seem to confute the unemployment invariance hypothesis.

Details

International Journal of Manpower, vol. 42 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 November 2011

Mauricio Reis

This paper aims to investigate whether shocks to the health of a self‐employed worker in Brazil increase the labour supply of other household members.

909

Abstract

Purpose

This paper aims to investigate whether shocks to the health of a self‐employed worker in Brazil increase the labour supply of other household members.

Design/methodology/approach

Using data from the Brazilian National Household Survey, this paper investigates whether the probability of other household members entering the labour force increases as a reaction to a decrease in income caused by the absence from work due to health problems of a head of household who is self‐employed.

Findings

The empirical evidence indicates that absence of the head of household from work due to health problems seems to increase the probability of other household members entering the labour force.

Originality/value

The paper provides evidence regarding the consequences of negative shocks to the health of self‐employed workers on households' labour supply decisions in Brazil.

Details

Journal of Economic Studies, vol. 38 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 7 September 2012

Liana Christin Landivar

Purpose – A central claim of the “added worker effect” is that married women increase their employment when husbands experience unemployment. This study evaluates the added worker

Abstract

Purpose – A central claim of the “added worker effect” is that married women increase their employment when husbands experience unemployment. This study evaluates the added worker effect in the context of the Great Recession. I examine whether married mothers increased their employment during the recession, and if the increase in employment occurred in households where the husband experienced unemployment.

Methodology/approach – I employ descriptive statistics and logistic regression models using 2006 and 2010 American Community Survey data.

Findings – I show that married mothers’ increased employment occurred in households that were less economically disadvantaged prior to the recession. The demand for married women's employment should have been stronger in households where men were employed in industries that were hard-hit by the recession. However, employment rates were lower among women married to men with lower earnings who were employed in the industries with the highest unemployment.

Social implications – These results show that women are not equally able to respond to husbands’ unemployment. Women with lower levels of education and lacking in job experience may be unable to obtain a job in a tight labor market. This may account for some of the household economic polarization and concentration of poverty in the last recession.

Originality/value of paper – Recent studies suggest that couples may be able to make up for spousal unemployment by increasing labor supply of other household members. However, these results indicate that the households that have the greatest need for additional workers may be those that have the most difficulty securing employment.

Details

Economic Stress and the Family
Type: Book
ISBN: 978-1-78052-978-3

Keywords

Article
Publication date: 7 November 2016

Emanuela Ghignoni and Alina Verashchagina

The purpose of this paper is to check the existence of the added worker effect (AWE) in Italy during the Great Recession.

Abstract

Purpose

The purpose of this paper is to check the existence of the added worker effect (AWE) in Italy during the Great Recession.

Design/methodology/approach

The authors used the Bank of Italy Survey on Household Income and Wealth to study factors driving the change in female work status over the period 2006-2012. The probit model was used to identify the timing, significance and the magnitude of the AWE. The authors also performed panel estimates to understand how women, positioned at either extensive or intensive margins, respond to the reduction in male hours of work which appear to be crucial for the AWE to manifest.

Findings

The authors find that with the crisis progressing, Italian women respond ever less to the reduction in male earnings, at the same time they become more responsive to the job loss by male partner which is the worst outcome. This means that the AWE survives, even if only in cases of serious hardship. It also remains when the reduction in male incomes is coupled with the reduction in their hours of work, suggesting that the redistribution of household chores is an important prerequisite for women to get into work.

Originality/value

This paper provides evidence on the AWE in Italy during the Great Recession. The authors took into account the peculiarity of the Italian labour market whose performance was affected by the use of the Wage Supplementation Fund. It masks part of the AWE when the standard methodology is used. By looking at the reduction in male earnings with or without a change in their work hours, the authors were able to reveal additional channels through which the AWE operates in Italy.

Details

International Journal of Manpower, vol. 37 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 31 October 2008

Maryke Dessing

The purpose of this paper is to critically review the literature to assess the relevance of the S‐shaped model of family labor supply for industrialized countries.

1499

Abstract

Purpose

The purpose of this paper is to critically review the literature to assess the relevance of the S‐shaped model of family labor supply for industrialized countries.

Design/methodology/approach

Studies use a wide variety of methodologies and therefore are not readily comparable, but instead they cover a wide range of relevant factors such as historical trends, fringe benefits and home mortgages, ethnic differences, farm labor, low‐income households, child care, the impact of welfare benefits, and the problem of the measurement of work hours.

Findings

In spite of welfare systems that blur somewhat the predicted income effect at lower wage levels (forward falling segment primarily for women), this model appears to still bear some relevance for these countries, in particular in the face of declining real wages. Families have generally moved up higher along that curve, with less differentiated gender roles, women's stronger labor force attachment, and assortative mating of educated women.

Originality/value

The model is mostly relevant for LDCs and has far‐reaching practical consequences, while the review highlights the complexity of labor supply in industrialized countries.

Details

Journal of Economic Studies, vol. 35 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 1 October 2008

Hielke Buddelmeyer, Gilles Mourre and Melanie Ward

This paper aims to identify the relative contribution of the business cycle and structural factors to the development of part-time employment in the 15 Member States of the…

Abstract

This paper aims to identify the relative contribution of the business cycle and structural factors to the development of part-time employment in the 15 Member States of the European Union before the 2004 enlargement (EU-15) over the 1980s and 1990s. To do so, it exploits both cross-sectional and time series variations in available data over the past two decades.

Key results include the business cycle that is found to exert a short-term negative effect on part-time employment developments, although this effect fades away over the two-decade period considered. This finding is consistent with firms utilising part-time employment as a means of adjusting their labour force to economic conditions. Correspondingly, involuntary part-time employment is found to be counter-cyclical, being higher in troughs of economic activity. Splitting our sample reveals a very significant effect of the business cycle on the rate of part-time work for young and male prime-age workers. Conversely, the effect is very weak for women and insignificant for older workers.

Institutions and other structural factors are also found to be significant, longer run determinants of the rate of part-time employment. Changes in legislation affecting part-time employment are found to have a strong and positive impact on part-time employment developments. Moreover, employment protection legislation is positively correlated with the part-time employment rate (PTR), which is consistent with the use of part-time work as a tool for enhancing flexibility in the presence of rigid labour markets. Less robust evidence suggests the presence of unemployment traps for some potential part-time workers. Cross-country evidence also indicates that the lower labour costs borne by firms when employing part-time workers have a large and positive influence on the PTR. Overall, a contribution analysis shows that the main structural and institutional variables generally explain the development in the part-time rate in the EU countries fairly well, while this is obviously not the case in the United States.

Details

Work, Earnings and Other Aspects of the Employment Relation
Type: Book
ISBN: 978-1-84950-552-9

Book part
Publication date: 14 July 2004

David E Kalist and Stephen J Spurr

This paper analyzes the market for registered nurses in the U.S. during the period from 1978 to 1995, but is specifically concerned with how the prospect of treating patients with…

Abstract

This paper analyzes the market for registered nurses in the U.S. during the period from 1978 to 1995, but is specifically concerned with how the prospect of treating patients with HIV or AIDS may have affected the supply of entrants into nursing. Using cross-sectional time-series data, we find that concern about the risk of contracting AIDS reduced admissions to nursing schools by as much as 15%. In states with a higher incidence of AIDS, such as New York, we find a much larger effect. Since the deterrent effect of AIDS was not limited to those considering whether to enter nursing school, our estimates represent a lower bound on the reduction in supply. However, we also find that the deterrent effect declined over time, as it became clear that the disease could not be transmitted by casual contact.

Our findings suggest that substantial welfare costs are imposed by regulations that require all nurses to treat patients with HIV or AIDS.

Details

Accounting for Worker Well-Being
Type: Book
ISBN: 978-1-84950-273-3

Book part
Publication date: 27 August 2016

Carlos Gradín

We investigate the reasons why income inequality is so high in Spain in the EU context. We first show that the differential in inequality with Germany and other countries is…

Abstract

We investigate the reasons why income inequality is so high in Spain in the EU context. We first show that the differential in inequality with Germany and other countries is driven by inequality among households who participate in the labor market. Then, we conduct an analysis of different household income aggregates. We also decompose the inter-country gap in inequality into characteristics and coefficients effects using regressions of the Recentered Influence Function for the Gini index. Our results show that the higher inequality observed in Spain is largely associated with lower employment rates, higher incidence of self-employment, lower attained education, as well as the recent increase in the immigration of economically active households. However, the prevalence of extended families in Spain contributes to reducing inequality by diversifying income sources, with retirement pensions playing an important role. Finally, by comparing the situations in 2008 and 2012, we separate the direct effects of the Great Recession on employment and unemployment benefits, from other more permanent factors (such as the weak redistributive effect of taxes and family or housing allowances, or the roles of education and the extended family).

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

Article
Publication date: 8 August 2018

Oxana Krutova, Pertti Koistinen and Tapio Nummi

The purpose of this paper is to outline the study to determine whether the dual earner model better offsets the actual risk of unemployment compared to other household models.

Abstract

Purpose

The purpose of this paper is to outline the study to determine whether the dual earner model better offsets the actual risk of unemployment compared to other household models.

Design/methodology/approach

The authors linked the partner effect (household type) with macroeconomic institutional settings, such as employment protection, the active labour market policy, economic growth rate and globalisation, to study how these micro- and macro-level factors influence the unemployment risk of individuals.

Findings

Using European Labour Force Survey (EU-LFS) microdata for Finland from 2005 to 2013 and a multilevel modelling technique, the authors found that the partner effect is an important regulator of unemployment risks, but the effect is modified by institutional factors. Dual earners and breadwinners experience a less significant effect from employment protection legislation regulation and other external factors on the increase or decrease in unemployment risk compared to singles. The authors also found that unemployed singles are more exposed and vulnerable to fluctuations caused by economic events.

Originality/value

In this way, this paper contributes to the sociological theory of labour markets and a better understanding of how different household types buffer and mediate the risks of unemployment. The authors used the EU-LFS and novel multilevel analysis statistical solutions to determine the impact of macro- and micro-level factors. The case of Finland may also be of broader interest to researchers and policy-makers because of the long and strong tradition of the dual earner employment pattern and strong macro-economic fluctuations.

Details

International Journal of Sociology and Social Policy, vol. 38 no. 11/12
Type: Research Article
ISSN: 0144-333X

Keywords

1 – 10 of 76