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Abstract

Details

International Journal of Manpower, vol. 40 no. 8
Type: Research Article
ISSN: 0143-7720

Article
Publication date: 4 September 2020

Francesco Pastore, Claudio Quintano and Antonella Rocca

There is a long period from completing studies to finding a permanent or temporary (but at least satisfactory) job in all European countries, especially in Mediterranean…

Abstract

Purpose

There is a long period from completing studies to finding a permanent or temporary (but at least satisfactory) job in all European countries, especially in Mediterranean countries, including Italy. This paper aims to study the determinants of this duration and measure them, for the first time in a systematic way, in the case of Italy.

Design/methodology/approach

This paper provides several measures of duration, including education level and other criteria. Furthermore, it attempts to identify the main determinants of the long Italian transition, both at a macroeconomic and an individual level. It tests for omitted heterogeneity of those who are stuck at this important crossroads in their life within the context of parametric survival models.

Findings

The average duration of the school-to-work transition for young people aged 18–34 years was 2.88 years (or 34.56 months) in 2017. A shorter duration was found for the highly educated; they found a job on average 46 months earlier than those with compulsory education. At a macroeconomic level, the duration over the years 2004–2017 was inversely related to spending in the labour market policy and in education, gross domestic product growth and the degree of trade union density; however, it was directly related to the proportion of temporary contracts. At the individual level, being a woman, a migrant or living in a densely populated area in the South are the risk factors for remaining stuck in the transition. After correcting for omitted heterogeneity, there is clear evidence of positive duration dependence.

Practical implications

Positive duration dependence suggests that focusing on education and labour policy, rather than labour flexibility, is the best way to smooth the transition.

Originality/value

This study develops our understanding of the Italian school-to-work transition regime by providing new and detailed evidence of its duration and by studying its determinants.

Details

International Journal of Manpower, vol. 42 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 21 January 2022

Francesco Pastore, Claudio Quintano and Antonella Rocca

The Italian school-to-work transition (STWT) is astonishingly slow and long in comparison to the other EU countries. We analyze its determinants comparing the Italian case…

Abstract

Purpose

The Italian school-to-work transition (STWT) is astonishingly slow and long in comparison to the other EU countries. We analyze its determinants comparing the Italian case with Austria, Poland and the UK.

Design/methodology/approach

The analysis is based on a Cox survival model with proportional hazard. The smoothed hazard estimates allow us to identify the nonlinear path of the hazard function.

Findings

The authors reckon that the actual length of the transition to a stable job is around 30 months in Italy. Conversely, it is less than one year in the other countries. Women are particularly penalized, despite being on average more educated than men. Tertiary or vocational education at high secondary school strongly increases the hazard rate to a regular job. The smoothed hazard estimates suggest positive duration dependence at the beginning of the transition and slightly negative thereafter.

Practical implications

Stimulating economic growth and investing in education and training are important pre-conditions for shortening the transition.

Originality/value

Despite the duration of the STWT is one of the most important indicators to measure the efficiency of the STWT, it is not easy to measure. The authors build on their previous research work on this topic, but relaxing the assumption of a monotonic hazard rate and using the flexible baseline hazard approach to test for the existence of nonlinear duration dependence. Furthermore, they extend the analysis by including student-workers who attended a vocational path of education, in order to detect its effectiveness in allowing young people finding a job sooner.

Details

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

Keywords

Content available
Article
Publication date: 16 May 2019

Francesco Pastore and Klaus F. Zimmermann

1333

Abstract

Details

International Journal of Manpower, vol. 40 no. 3
Type: Research Article
ISSN: 0143-7720

Article
Publication date: 15 March 2022

Giuseppe Lucio Gaeta, Giuseppe Lubrano Lavadera and Francesco Pastore

The wage effect of job–education vertical mismatch (i.e. overeducation) has only recently been investigated in the case of Ph.D. holders. The existing contributions rely…

Abstract

Purpose

The wage effect of job–education vertical mismatch (i.e. overeducation) has only recently been investigated in the case of Ph.D. holders. The existing contributions rely on ordinary least squares (OLS) estimates that allow measuring the average effect of being mismatched at the mean of the conditional wage distribution.

Design/methodology/approach

The authors implement a recentered influence function (RIF) to estimate the overeducation gap along the entire hourly wage distribution and compare Ph.D. holders who are overeducated with those who are not on a specific sample of Ph.D. holders in different fields of study and European Research Council (ERC) categories. Moreover, the authors compare the overeducation gap between graduates working in the academic and non-academic sector.

Findings

The results reveal that overeducation hits the wages of those Ph.D. holders who are employed in the academic sector and in non-research and development (R&D) jobs outside of the academic sector, while no penalty exists among those who carry out R&D activities outside the academia. The size of the penalty is higher among those who are in the mid-top of the wage distribution and hold a Social Science and Humanities specialization.

Practical implications

Two policies could reduce the probability of overeducation: (a) a reallocation of Ph.D. grants from low to high demand fields of study and (b) the diffusion of industrial over academic Ph.Ds.

Originality/value

This paper observes the heterogeneity of the overeducation penalty along the wage distribution and according to Ph.D. holders' study field and sector of employment (academic/non-academic).

Details

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

Keywords

Article
Publication date: 19 October 2010

Francesco Pastore

The Saint Valentine's Decree (1984) and the ensuing hard‐fought referendum (1985), which reduced the automatisms of scala mobile, started a process of redefinition of wage…

Abstract

Purpose

The Saint Valentine's Decree (1984) and the ensuing hard‐fought referendum (1985), which reduced the automatisms of scala mobile, started a process of redefinition of wage fixing in Italy, which culminated with the final abolition of scala mobile (1992) and the approval of Protocollo d'intesa (1993). Since then, following new corporatist principles, a national system of centralised wage bargaining (concertazione) and so‐called “institutional indexation” have governed the determination of wages. Does incomes policy generate greater coordination in the process of wage formation? Does it cause greater co‐movement of wages, prices, labour productivity and unemployment? This paper aims to answer these questions with reference to one of the G8 economies.

Design/methodology/approach

After testing for unit root each component by using the ADF, Phillips and Perron, DF‐GLS and Zivot and Andrews statistics, the paper tests for co‐integration the so‐called WPYE model using different methods. The Engle and Granger approach is used to assess the impact of incomes policy on the speed of adjustment of real wages, productivity (and unemployment) to their equilibrium value, while the Gregory and Hansen procedure serves as a means to endogenously detect the presence of a regime shift. The paper estimates coefficients before and after the structural break.

Findings

Incomes policy based on the 1993 Protocol has caused a regime shift in the process of wage determination. The long‐run estimates of the WPYE model do not generate stationary residuals except when a dummy for 1993 is added. The share of wages over GDP reduces by about ten percentage points in the early 1990s and has stood at about 57 per cent since 1995. The link with productivity is close to one‐to‐one only before the break. The feedback mechanism, as measured by the coefficient of lagged residuals in short‐run estimates, is increased from −0.46 in the pre‐reform to −0.79 in the post‐reform period, suggesting that incomes policy has increased real wage flexibility indeed. In recent years the link between real wages and (very low) labour productivity growth has weakened. In a sense, incomes policy has introduced a new form of (upward) wage rigidity. Last but not least, incomes policy has changed the correlation with the unemployment rate from positive to not statistically significant.

Research limitations/implications

Future developments will focus on disentangling the impact of incomes policy vis‐à‐vis other policy interventions on WPYE and on unemployment.

Practical implications

The analysis calls for a careful revision of the 1993 Protocol aimed at better protecting the purchasing power of real wages without losing control on inflation, and introducing growth‐generating mechanisms.

Originality/value

The paper studies the impact of incomes policy on WPYE and the Phillips curve by means of co‐integration and structural break analysis. It proposes to interpret the effect of incomes policy on the Phillips curve as changing the coefficient of the error correction mechanism that leads real wages to their long‐run equilibrium value.

Details

International Journal of Manpower, vol. 31 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 2 November 2021

Allan Webster, Sangeeta Khorana and Francesco Pastore

The choice of Southern Europe is partly based on the observation that the sample includes a number of countries whose economies faced more severe difficulties than…

Abstract

Purpose

The choice of Southern Europe is partly based on the observation that the sample includes a number of countries whose economies faced more severe difficulties than elsewhere in Europe. Economically they were less able to absorb the economic shock posed by COVID-19. It is also partly based on the characteristics of the pandemic. A number of countries in the sample were amongst the earliest in Europe to be hit by the pandemic and a several were harder hit in terms of both morbidity and mortality.

Design/methodology/approach

This study uses evidence from World Bank enterprise surveys of a sample of firms from six countries in Southern Europe. It examines the early evidence of the effects of COVID-19 on labour markets. The economic consequences potentially cover a wide range of issues. The focus of this study is on firm level evidence of the effect on labour. The evidence and the analysis are provided at a time when the pandemic is still in progress. The authors use both traditional regression analysis and IPWRA to assess the joint effect of loans versus government support on, firstly, the change in sales revenues and, secondly, the number of weeks that the firm would expect to survive with no sales revenues.

Findings

The study suggests that, despite efforts to support firms and hoard labour, there is a prospect of a significant number of firm closures with a consequent loss of employment. Temporary firm closures also represent a substantial loss of labour weeks. These are partly related to a significant number of workers subject to furloughs. The empirical findings suggest that COVID-19 cases and deaths have directly affected firm sales but government containment measures, particularly closures, have more strongly affected firms. Losses of sales were unsurprisingly related to losses of employment. Remote working has contributed to sustaining employment but online business has not affected most sectors.

Research limitations/implications

The future progress of COVID-19 and government containment measures is uncertain, and the full economic consequences will probably continue to emerge after the end of the pandemic. The full extent of the impact on labour will probably not be the first of these. There are obvious advantages in seeking to learn lessons from the early stages of the pandemic but there are also obvious constraints. The full economic consequences will take longer to emerge than the pandemic itself and the full consequences for employment will take longer to be evident than many other economic effects.

Practical implications

Both temporary closures and furloughs impose costs that will be borne by firms, workers and government. The effects of COVID-19 on firms differ across sectors. Adverse effects tend to be higher in hospitality, non-essential retail and travel. That many firms lack the capacity to survive further temporary closures of a similar duration to those in the earlier stages emphasises that the support provided in the near future is of critical importance to control employment losses through permanent firm closures. A long-term perspective suggests neither permanent closure nor laying off workers may be the best response to a temporary crisis in demand. A stakeholder model of the firm would often suggest that it is not an optimal for the point of view of workers or the wider economy either. Both imply a preference for labour hoarding.

Social implications

The most affected are sectors with a high proportion of female workers and, in consequence, most of the countries in the sample exhibit an early decline of the already lower than average share of women in employment.

Originality/value

The data used have been recently released and this is the first analysis using the data to look at the consequence on firms employment decisions during the Pandemic. The case of Southern Europe is much understudied, though one of the most dramatic as to the consequences of the pandemic. From a methodological point of view, the authors use not only traditional regression analysis, but also the matching approach to identify the effect of different policy options on labour demand by firms.

Details

International Journal of Manpower, vol. 43 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 19 October 2010

Enrico Marelli and Francesco Pastore

The purpose of this paper is to introduce the special issue on “Labour, productivity and growth”.

2633

Abstract

Purpose

The purpose of this paper is to introduce the special issue on “Labour, productivity and growth”.

Design/methodology/approach

The paper discusses the articles in the special issue, which investigate the main theme – labour, productivity and growth – from different points of view by employing a variety of econometric methods. These include improvement of the evaluation of the impact of labour market flexibility on economic performance, analysis of the macroeconomic law of decreasing returns to labour, a new panel co‐integration method, and a reinterpretation of co‐integration analysis to assess the impact of incomes policy. Institutional variables, in particular the system of industrial relations, are duly considered.

Findings

The papers in the special issue highlight different causes of sluggish economic (productivity) growth in Europe, in the light of not only traditional macroeconomic variables, such as total factor productivity and labour market flexibility, but also such factors as neo‐corporatist industrial relations and management practices, which are generally neglected in the literature.

Originality/value

The paper introduces a number of articles proposing innovations in the interpretation and application of a wide range of theoretical approaches and econometric methodologies. It also discusses several policy suggestions for fighting sluggish productivity growth, including investment in research and development, human capital, flexicurity, innovative industrial relations practices and high‐performance workplace practices also considered capable of affecting macroeconomic performance.

Details

International Journal of Manpower, vol. 31 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 23 March 2012

Giuliana Parodi and Francesco Pastore

The purpose of this paper is to introduce the special issue on “Disadvantaged workers in the labour market” and to draw some policy implications that are common to the…

645

Abstract

Purpose

The purpose of this paper is to introduce the special issue on “Disadvantaged workers in the labour market” and to draw some policy implications that are common to the studies included in the special issue.

Design/methodology/approach

The paper introduces several econometric methodologies adopted in the special issue. Such methodologies represent an excellent overview of the typical approaches developed by applied economists to address the issue under discussion. They include: dynamic probit models allowing for unobserved heterogeneity and endogenous initial conditions; propensity score matching; the non parametric Ñopo decomposition to take into account sample selection bias; endogenous switching models to estimate employment choice; and fixed effects models and Arellano and Bond dynamic panel estimator.

Findings

The articles in the special issue highlight several common factors that make the disadvantage at the labor market emerge. The first factor is the recent financial crisis which especially affects young people. Differences in common support – generally due to segregation in low pay jobs – are also important. Several factors favor persistence of the disadvantage, namely the inefficiency of the educational system and the lack of financial support to the weakest groups.

Practical implications

The paper adopts the EU definition of “disadvantaged workers”, namely workers who find it hard to enter the labor market without assistance. The authors show the relevance of the analysis produced in this special issue to design specific policies fine‐tuned to the needs of disadvantaged workers. In addition, institutional reforms, and/or interventions on structural variables are also in order.

Originality/value

The paper introduces a number of articles proposing innovations in the interpretation and application of a wide range of theoretical approaches and econometric methodologies.

Article
Publication date: 23 March 2012

Floro Ernesto Caroleo and Francesco Pastore

The purpose of this paper is to point to the inefficiency of the Italian educational system as a key factor of persistent differences between the distribution of incomes…

Abstract

Purpose

The purpose of this paper is to point to the inefficiency of the Italian educational system as a key factor of persistent differences between the distribution of incomes (skewed) and that of talents (normal), stated in the Pigou paradox. In fact, against the intention assigned to it by the Italian constitution, the educational system is designed in such a way to reinforce, rather than weaken, the current unequal distribution of incomes.

Design/methodology/approach

The authors study the socio‐educational background of AlmaLaurea graduates by way of correlation and regression analysis. The AlmaLaurea databank is the most important source of statistical information of its type in the country. The authors, consider several indicators of performance, such as the probability of getting a degree, the final grade achieved and the length of studies.

Findings

Parents’ educational level appears to be the main determinant of the grade achieved at secondary high school and at the university. The effect of family background on children's success at the university is not direct, but through the high school track. In fact, although any secondary high school gives access to the university, nonetheless lyceums provide students with far higher quality of education than technical and professional schools. Parental background affects also the length of studies, which suggests that the indirect cost of tertiary education is much higher for those with a poorer educational background and limited means.

Practical implications

Increasing the average educational level was one of the promises of the “3+2” university reform implemented in 2001. This objective has been achieved only in part, due to the continuing high indirect cost of tertiary education, which particularly affects individuals with limited means. More coordination in the interpretation and implementation of the aims of the reform would have prevented the main actors of the reform from failing it. School tracking should be reformed so as to allow more consideration for low school grades in the choice of parents and provide more on‐the‐job training to students in the professional/technical schools.

Originality/value

The paper proposes an interpretation of the Pigou paradox in Italy, based on the inefficiency of the university system, due to the peculiar school tracking and the ensuing high indirect cost of education. On this, the paper provides new circumstantial evidence based on the AlmaLaurea database almost ten years after the “3+2” reform.

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