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1 – 10 of over 11000The purpose of this paper is to establish the concept of unemployment defined by the International Labour Organisation appears to be too narrow within the context of many African…
Abstract
Purpose
The purpose of this paper is to establish the concept of unemployment defined by the International Labour Organisation appears to be too narrow within the context of many African countries including Ghana. This phenomenon tends to put many jobless adults into the discouraged worker category thereby giving a misleading picture about the unemployment situation in these countries. In addition, the structure of the labour market in many African countries is such that informality takes the face of unemployment.
Design/methodology/approach
The paper uses a scatter plot and simple correlation analysis to show a trade-off between informality or vulnerability of employment and unemployment rates in Africa. The paper also adopts descriptive approach based on simple diagrams to show the extent of discouraged worker effect on the phenomenon of unemployment.
Findings
The paper finds a significantly negative correlation between unemployment and informality in Africa. Beside the high level of informality that hides the face of unemployment, the exclusion of many discouraged workers in estimating unemployment underrates the seriousness of the phenomenon. The paper therefore recommends the adoption of a broader definition of unemployment that accounts for discourage workers and underemployment to show the true picture of labour market challenge in Africa. Additionally, targeted programmes to support and transform the informal sector is required to make it a more attractive means of employment rather than being seen as a refuge point for the unemployed in Africa.
Originality/value
The observation that unemployment should be looked at from a broader perspective that accounts for discourage workers to inform policy design forms a base of the paper’s contribution to the body of literature. In addition, the high level of informality that hides the problem of unemployment shows that labour market challenges should not be restricted to unemployment but low quality of employment that characterises informality as well.
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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.
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Roger Patulny, Gaby Ramia, Zhuqin Feng, Michelle Peterie and Greg Marston
Governments increasingly promote employment through social networks (whether via formal job networks or informal personal networks). However, they rarely account for how weak-tie…
Abstract
Purpose
Governments increasingly promote employment through social networks (whether via formal job networks or informal personal networks). However, they rarely account for how weak-tie “bridging” networks and strong-tie “bonding” networks differentially affect employment outcomes. Given criticism that (usually weak-tie bridging-focussed) formal job networks are overly focussed on finding entry-level (i.e. any) jobs, it is imperative to understand the impact of strong and weak ties on securing work with good conditions, or of meaning to the worker. Such links are poorly understood in the present literature. The paper aims to discuss this issue.
Design/methodology/approach
This study uses national Australian survey data to assess whether support from close “friends” or distant “acquaintances” is associated with employment outcomes such as finding any work or “meaningful” work.
Findings
The results show that relatively distant ties (close acquaintances) and emotional support from friends are each associated with reduced chances of being an unemployed/discouraged worker. Stronger ties (close friends) are associated with better chances of a having a “meaningful” job.
Practical implications
More attention should be paid to tie strength dynamics and meaningful employment outcomes in the delivery of employment services. In particular, a role for active “close-tie brokers” in promoting networks should be investigated, instead of expecting/pushing the unemployed to rely on either extremely close or distant connections.
Originality/value
This is the first study to find a link between network type and meaningful work, which has important implications for the delivery of employment services.
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Francesco Nemore, Rocco Caferra and Andrea Morone
Our main purpose is to test the unemployment invariance hypothesis in Italy.
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.
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The supply side of the labor market has too often been neglected in considering the effects of minimum wage legislation. Minimum wage effects on unemployment have been studied…
Abstract
The supply side of the labor market has too often been neglected in considering the effects of minimum wage legislation. Minimum wage effects on unemployment have been studied extensively, and the unemployment rate has been related in turn to the labor force participation rate. But the relationship between minimum wages and labor force participation has been almost completely ignored in the published literature.
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.
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.
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Michaeline Skiba and Patrick O'Halloran
Taking a broad review of the management and economics literature, the purpose of this paper is to examine how the recent “Great Recession” has had a disproportionate adverse…
Abstract
Purpose
Taking a broad review of the management and economics literature, the purpose of this paper is to examine how the recent “Great Recession” has had a disproportionate adverse impact on US labor markets and created social disruptions to professional workers experiencing persistent unemployment or underemployment.
Design/methodology/approach
Secondary data analysis shows how the recent recession has had a disproportionate impact on employment. Recognizing underemployment as a potentially persistent state, the authors delineate the extent and consequences of underemployment.
Findings
Analyses of unemployment and underemployment resulting from the recent recession suggest it has had a particularly severe detrimental impact on worker benefits, incomes and employment prospects for most US workers.
Research limitations/implications
Secondary data analysis is a major limitation but results justify a call for further research into the potential increase in the long‐term economic displacement of professional workers.
Originality/value
This paper is unique in applying economic and management constructs in an analysis of the origins, consequences and recommendations for decreasing the rising level of underemployment among professional US workers.
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We test the pertinence of the unemployment invariance hypothesis (UIH) for a set of Organisation for Economic Co-operation and Development countries.
Abstract
Purpose
We test the pertinence of the unemployment invariance hypothesis (UIH) for a set of Organisation for Economic Co-operation and Development countries.
Design/methodology/approach
We empirically investigate the nexus between unemployment and labour force participation employing structural vector autoregressive methods for panel data.
Findings
We find that shocks in unemployment produce long-lasting, negative effects on participation, testifying to a discouraged worker effect.
Originality/value
Our results do not support the validity of the UIH in high-income economies. This has relevant implications for policy making and macroeconomic models.
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Margaret Maurer‐Fazio, James W. Hughes and Dandan Zhang
The purpose of the paper is to examine observed differences in China's ethnic majority and minority patterns of labor force participation and to decompose these differences into…
Abstract
Purpose
The purpose of the paper is to examine observed differences in China's ethnic majority and minority patterns of labor force participation and to decompose these differences into treatment and endowment effects.
Design/methodology/approach
Data from the three most recent population censuses of China are employed to explore differences in the labor force participation rates of a number of China's important ethnic groups. Gender‐separated urban labor force participation rates are estimated using logit regressions, controlling for educational attainment, marital status, pre‐school and school‐age children, household size, age, and measures of local economic conditions. The focus is on the experience of six minority groups (Hui, Koreans, Manchu, Mongolians, Uygurs, and Zhuang) in comparison to the majority Han. The technique developed by Borooah and Iyer is adopted to decompose the differences in labor force participation rates between pairs of ethnic groups into treatment and endowment effects.
Findings
Sizeable differences are found between the labor force participation rates of prime‐age urban women of particular ethnic groups and the majority Han. Men's participation rates are very high (above 95 percent) and exhibit little difference between Han and ethnic minorities. For almost all pairwise comparisons between Han and ethnic women, it is found that differences in coefficients account for more than 100 percent of the Han‐ethnic difference in labor force participation. Differences in endowments often have substantial effects in reducing this positive Han margin in labor force participation. Roughly speaking, treatment of women's characteristics, whether in the market or socially, tend to increase the Han advantage in labor force participation. The levels of these characteristics on average tend to reduce this Han advantage.
Research limitations/implications
The paper analyses only one aspect of the economic status of China's ethnic minorities – labor force participation. It would be useful also to examine income, educational attainment, occupational attainment, and unemployment.
Originality/value
This paper contributes to and expands the scant literature on ethnicity in China's economic transition.
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