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Book part
Publication date: 15 December 2004

James P. Cover and Hoseong Kim

This study presents estimates of the effect of changes in the real minimum wage on the employment ratio of three groups believed to be most vulnerable to changes in the minimum…

Abstract

This study presents estimates of the effect of changes in the real minimum wage on the employment ratio of three groups believed to be most vulnerable to changes in the minimum wage: teenagers, young adults, and adult high-school dropouts. It also examines the effect of the minimum wage on three sub-groups within each of these larger groups: males, females, and nonwhites. The data set was obtained from the monthly outgoing rotation groups of the Current Population Survey (CPS), Three Budgets for Urban Families, and the CPI-W for various urban areas. The sample period is 1979–1999.

Details

Studies on Economic Well-Being: Essays in the Honor of John P. Formby
Type: Book
ISBN: 978-0-76231-136-1

Book part
Publication date: 11 July 2019

Zornitza Kambourova, Wolter Hassink and Adriaan Kalwij

An adverse health event can affect women’s work capacity as they need time to recover. The institutional framework in the Netherlands provides employment protection during the…

Abstract

An adverse health event can affect women’s work capacity as they need time to recover. The institutional framework in the Netherlands provides employment protection during the first two years after the diagnosis. In this study, we have assessed the extent to which women’s employment is affected in the short- and long term by an adverse health event. We have used administrative Dutch data which follow women aged 25 to 55 years for four years after a medical diagnosis. We found that diagnosed women start leaving employment during the protection period and four years later they were about one percentage point less likely to be employed. Women in permanent employment did not reduce their employment during the protection period and reduced their employment with less than 0.5 percentage points thereafter. Furthermore, we found minor adjustments in the working hours in the short term and no adjustments in the long term. Lastly, we found that for wages, and not for employment and hours, adjustments could be related to the severity of the health condition: women diagnosed with temporary health conditions experienced a short-term wage penalty of about 0.5–1.7 percent and those diagnosed with chronic and incapacitating conditions experienced a long-term wage penalty of about 0.5 percent, while women diagnosed with some chronic and nonincapacitating conditions, such as respiratory conditions, experienced no wage changes in the short or long term.

Book part
Publication date: 23 November 2020

Masao Yamaguchi

Recent empirical studies have improved methodologies for identifying the causal effects of policies especially on a minimum wage hike. This study identifies causal effects of…

Abstract

Recent empirical studies have improved methodologies for identifying the causal effects of policies especially on a minimum wage hike. This study identifies causal effects of minimum wage hikes across 47 prefectures in Japan from 2008 to 2010 on employment, average hourly wage, work hours, full-time equivalent employment (FTE), total wage costs, average tenure, separation and new hiring in establishments using a micro dataset of business establishments in restaurant, accommodation, and food takeout and delivery industry. Various regression specifications including controls for time-varying regional heterogeneity are implemented by using the bite of the minimum wage in each establishment. First, this study finds that the effects of a revision of minimum wage on employment and FTE in the establishment are statistically insignificant, but the effects on hourly wages and total wage costs are statistically significant. Subsequently, it considers how the establishments react to the increase in total wage costs caused by the revised minimum wage, and finds that separation from the establishment may decrease, and average tenure of workers may increase.

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Change at Home, in the Labor Market, and On the Job
Type: Book
ISBN: 978-1-83909-933-5

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Book part
Publication date: 12 September 2017

Marquise J. McGraw

This chapter examines the effects that airports have had on economic development in cities from 1950 to 2010. It uses a novel dataset consisting of previously unexploited data on…

Abstract

This chapter examines the effects that airports have had on economic development in cities from 1950 to 2010. It uses a novel dataset consisting of previously unexploited data on the origins and history of the aviation system in the United States. Applying the method of synthetic controls to a set of medium and small airports, I examine both the overall impacts and the heterogeneity within the outcomes of various airports. Then, I use regression analysis to determine key factors differentiating successful airports from less successful ones, as it pertains particularly to population and employment growth. I find that, first, on average, cities have benefited from airports over this period. Airports, overall, provided a causal contribution of 0.2– 0.6% per year on population and employment growth over the time period. Second, I show that city-level factors contributing to airport success include: (1) closer proximity to a major research university, (2) a capital city location, and (3) climate factors, particularly higher January mean temperatures and/or hours of sunshine. City size is a consideration as well; cities in larger metropolitan areas, with larger shares of employment in nontradables in the 1950s, were also better positioned to reap the benefits that airports provided on city growth. Significant differences were not found across regions, airport governance structures, or other factors.

Details

The Economics of Airport Operations
Type: Book
ISBN: 978-1-78714-497-2

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Article
Publication date: 28 April 2023

Mónica Jiménez Martínez and Maribel Jiménez Martínez

While the effect of the minimum wage (MW) on employment has been widely studied, less is known about its impact on hirings and separations. Whereas the adverse effects of MW on…

Abstract

Purpose

While the effect of the minimum wage (MW) on employment has been widely studied, less is known about its impact on hirings and separations. Whereas the adverse effects of MW on hiring are quite familiar, results of studies indicating reductions in separations are less expected. This study aims to bridge the gap between theory and practice by performing a meta-analysis, which allows for understanding the real effect of MW on employment's two components: hirings and separations.

Design/methodology/approach

Since mixed results cloud understanding of the issue, a meta-regression analysis was conducted. This technique permits understanding the effect of MW on labor market transitions and offers additional explanations for controversial results.

Findings

Despite the evidence that MW increasing the turnover and reducing permanence could negatively affect employment, findings from meta-regression analysis pointed out that increases in MW reduce hirings but also separations offsetting the negative effect on employment. Overall, the results imply that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and separations. Evidence of negative publication bias is also found.

Research limitations/implications

The results emphasize the importance of looking beyond employment rates to understand the impacts of MW. Overall, the evidence implies that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and layoffs. In addition, the results suggest that MW tends to have a much larger impact on employment flows than on employment levels. This finding has to be considered by policymakers when they make decisions about increasing the MW. These analyses assist in clarifying debates about the effects of MW on the labor market in the changing economic environment and conduct a labor policy in the right direction.

Practical implications

The meta-regression analysis (MRA) conducted in this study emphasizes the importance of looking beyond employment rates to understand the impacts of MW (Brochu and Green, 2013). Overall, the evidence implies that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and layoffs. Therefore, the evidence from the performed MRA is consistent with those previous meta-analysis studies that found little or no evidence about MW adversely affecting employment and, at the same time, provide additional explanation for these findings. In addition, the results suggest that MW tends to have a much larger impact on employment flows than on employment levels (Dube et al., 2016).

Social implications

Even though hirings are reduced due to MW, this evidence could not necessarily imply a negative effect of MW on the labor market since job searching or matching is improved. Additionally, the increases in MW could improve the quality of the job and the job attachment, which are consistent with a recruitment-retention model (Dube et al., 2007). The evidence from this MRA, which is consistent with little or no impact of MW on employment, also could imply that although the MW is set relatively high to balance the supply and demand of labor, their level is close to optimal. Setting the right level is also associated with compliance with MW. This issue deserves attention since any adverse employment effects of MW could be strengthened by incomplete coverage. The effectiveness of the entire process of developing, putting into practice and enforcing MW rules hinges on compliance.

Originality/value

As prior meta-regression analysis did not have the same objective, the results of this article move current research forward. Based on the analysis, future research lines are delineated, and some public policy implications are assessed.

Details

Employee Relations: The International Journal, vol. 45 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 19 December 2022

Lamei He, Jianping Zha, Jianying Tang, Ting Tan and Qiao Yu

Tourism is a labor-intensive sector with extensive links to other industries and plays a vital role in creating employment. This study aims to propose a new framework to analyze…

Abstract

Purpose

Tourism is a labor-intensive sector with extensive links to other industries and plays a vital role in creating employment. This study aims to propose a new framework to analyze the intrinsic structure of the employment effects of tourism-related sectors and their drivers.

Design/methodology/approach

This study uses input–output and structural decomposition analysis (IO-SDA) to quantify the employment effects of tourism-related sectors and their driving mechanisms based on China’s I-O tables of 2002, 2007, 2012 and 2017.

Findings

The results show a declining trend in the intensity of direct or indirect employment effects in tourism-related sectors, indicating a decreasing number of jobs directly or indirectly required to create a unit of tourism output. Among tourism-related sectors, catering has the highest intensity of indirect employment effects over the study period. Catering stimulates the indirect employment of agriculture, forestry, animal husbandry, fishery and food and tobacco manufacturing. The decomposition analysis reveals that final demand is the largest contributor to the increase in tourism employment, while technological progress shifts from an employment-creation effect in 2002–2012 to an employment-destruction effect in 2012–2017.

Originality/value

This study proposes a new analytical framework to investigate the structural proportional relationship between the direct and indirect employment effects of various tourism-related sectors and their dynamic changes. Doing so, it provides valuable references for policymakers to promote tourism employment.

旅游相关部门就业效应的驱动因素:以中国为例

摘要

研究目的

旅游业是一个劳动密集型部门, 与其他国民经济部门有着广泛的联系, 这在创造就业方面发挥着重要作用。本研究旨在建立一个框架, 分析旅游相关部门就业效应的内在结构及其驱动因素。

研究设计

本研究基于中国2002年、2007年、2012年和2017年的投入产出表, 引入投入产出和结构分解分析(IO-SDA)法量化了旅游相关行业的就业效应及其变化的驱动机制。

研究结果

旅游相关部门的直接或间接就业强度呈下降趋势, 可见创造一个单位的旅游产出所需的直接或间接工作数量在减少。在旅游相关部门中, 餐饮部门在研究期内的间接就业效应强度最高, 主要带动了农、林、牧、渔业和食品及烟草制造业的间接就业。旅游就业效应变动的驱动因素中, 最终需求是旅游就业效应增加的最大贡献者, 技术效应从2002-2012年期间的就业创造效应转变为2012-2017年期间的就业破坏效应。

研究原创性

本研究建立了一个全新的分析框架, 可以揭示各个旅游相关部门的直接和间接就业效应之间的结构比例关系及其动态变化。对旅游就业效应的驱动因素分析可以为政策制定者提供针对性的建议, 以促进旅游就业。

Factores que impulsan los efectos del empleo en los sectores relacionados con el turismo: El caso de China continental

Resumen

Propósito

El turismo es un sector intensivo en mano de obra con amplios vínculos con otras industrias y desempeña un papel vital en la creación de empleo. Este estudio propone un nuevo marco para analizar la estructura intrínseca de los efectos en el empleo de los sectores relacionados con el turismo y sus impulsores.

Diseño/metodología/enfoque

Este estudio utiliza el análisis de entrada-salida (input-output) y de descomposición estructural (structural decomposition) (IO-SDA) para cuantificar los efectos sobre el empleo en los sectores relacionados con el turismo y sus mecanismos impulsores, basándose en las tablas input-output de China de 2002, 2007, 2012 y 2017.

Conclusiones

Los resultados muestran una tendencia a la baja en la intensidad de los efectos directos o indirectos del empleo en los sectores relacionados con el turismo, lo que indica un número cada vez menor de puestos de trabajo directos o indirectos necesarios para crear una unidad de producción turística. Entre los sectores relacionados con el turismo, la restauración tiene la mayor intensidad de efectos indirectos sobre el empleo durante el periodo de estudio. La restauración estimula el empleo indirecto de la agricultura, la silvicultura, la ganadería, la pesca y la fabricación de alimentos y tabaco. El análisis de descomposición revela que la demanda final es la que más contribuye al aumento del empleo turístico, mientras que el progreso tecnológico pasa de ser un efecto de creación de empleo en 2002-2012 a un efecto de destrucción de empleo en 2012-2017.

Originalidad/valor

Este estudio propone un nuevo marco analítico para investigar la relación estructural proporcional entre los efectos directos e indirectos del empleo de varios sectores relacionados con el turismo y sus cambios dinámicos. De este modo, proporciona valiosas referencias para que los responsables políticos promuevan el empleo en el sector turístico.

Article
Publication date: 9 November 2012

Jing Wang and Morley Gunderson

The purpose of this paper is to estimate the impact of minimum wages on employment and wages in China.

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Abstract

Purpose

The purpose of this paper is to estimate the impact of minimum wages on employment and wages in China.

Design/methodology/approach

The paper uses the difference‐in‐difference methodology to estimate the employment and wage impacts of the minimum wage increase in 2003 – a year when substantial minimum wage increases occurred in some provinces (treatment provinces) but not in others (comparison provinces). The analysis is restricted to the eastern region so as to make comparisons across relatively homogeneous and contiguous provinces with large numbers of women and rural migrant workers in urban areas – the target groups for minimum wages.

Findings

The study finds that overall, minimum wages in China do have an adverse employment effect but the effect is statistically insignificant and quantitatively inconsequential. The adverse employment effects are generally larger in the more market‐driven sectors, in the low‐wage sector of retail and wholesale trade and restaurants, and for women; however even these effects are extremely small. Minimum wages also had no impact on aggregate wages. These estimates appear consistent with many of those based on this methodology which tends to find no substantial adverse employment effect from minimum wages.

Practical implications

Good news: minimum wages do not seem to have any substantial adverse employment effect in China. Bad news: this could simply reflect the fact that they are not enforced.

Originality/value

This is one of the few studies of effect of minimum wages in China in English, and using a difference‐in‐difference methodology as first employed by Card.

Details

International Journal of Manpower, vol. 33 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 May 1985

Ciaran Driver, Andrew Kilpatrick and Barry Naisbitt

This article uses a 22‐industry breakdown of the UK manufacturing sector to examine the effects on employment of various changes in the structure, but not the overall level, of…

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Abstract

This article uses a 22‐industry breakdown of the UK manufacturing sector to examine the effects on employment of various changes in the structure, but not the overall level, of exports, imports, and trade balances within an input‐output framework. The analyses reported relate to greater specialisation in trade, faster structural adjustment and import substitution. The results show both the industrial pattern and overall net effect of employment changes and the distinction is made between the direct employment consequences of changes in the trade balances of the industries concerned and induced employment changes via derived demands for intermediate inputs.

Details

Journal of Economic Studies, vol. 12 no. 5
Type: Research Article
ISSN: 0144-3585

Article
Publication date: 19 July 2013

Cordula Zabel

The aim of this paper is to study employment effects of workfare and training programs for lone mothers receiving means‐tested benefits in Germany.

Abstract

Purpose

The aim of this paper is to study employment effects of workfare and training programs for lone mothers receiving means‐tested benefits in Germany.

Design/methodology/approach

The empirical analyses are based on a large‐scale administrative data set covering the entire population of unemployed means‐tested benefit recipients. A timing‐of‐events approach is used to control for possible selectivity in program entries.

Findings

Findings are that lone mothers particularly profit from participating in vocational training programs. It seems they can benefit from updating their job skills after having interrupted their employment for childcare. By contrast, workfare does not seem to be beneficial for those with young children. Workfare is especially intended to enhance participants' motivation to increase their job search efforts. The main reason lone mothers of young children have not been employed is however likely to be lack of childcare, rather than lack of motivation.

Practical implications

Lone mothers of young children are perhaps not an adequate focus group for workfare, and should be assigned there less often, and instead more frequently to skill training programs.

Originality/value

As of yet, very little research has investigated effects of training and workfare programs specifically for lone mothers in Germany. The findings from the present study can contribute to understanding whether lone mothers, who are strongly targeted by these programs despite facing employment obstacles on account of low levels of childcare provision, can actually profit from program participations.

Details

International Journal of Sociology and Social Policy, vol. 33 no. 7/8
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 11 June 2020

Mark Heil

This paper reviews economic studies on the effects of various aspects of finance on labour market outcomes.

Abstract

Purpose

This paper reviews economic studies on the effects of various aspects of finance on labour market outcomes.

Design/methodology/approach

The paper is a systematic literature review that reviews the weight of the evidence on the relationships between specific elements of finance and labour outcomes. The review is divided into three major sections: (1) job quantity and job quality; (2) distributional effects; and (3) resilience and adaptability.

Findings

Finance interacts with labour market institutions to jointly determine labour outcomes. Firm financial structures influence their labour practices – highly leveraged firms show greater employment volatility during cyclical fluctuations, and leverage strengthens firm bargaining power in labour negotiations. Bank deregulation has mixed impacts on labour depending upon the state of prior bank regulations and labour markets. Leveraged buyouts tend to dampen acquired-firm job growth as they pursue labour productivity gains. The shareholder value movement may contribute to short-termism among corporate managers, which can divert funds away from firm capital accumulation toward financial markets, and crowd out productive investment. Declining wage shares of national income in most OECD countries since 1990 may be driven in part by financial globalisation. The financial sector contributes to rising income concentration near the top of the distribution in developed countries. The availability of finance is associated with increased reallocation of labour, which may either enhance or impede productivity growth. Finally, rising interest rate environments and homeowners with mortgage balances that exceed their home's value may reduce labour mobility rates.

Originality/value

This review contributes to the understanding of the effects of finance on labour by reviewing and synthesising a large volume of literature.

Details

Journal of Economic Studies, vol. 47 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

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