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Article
Publication date: 13 May 2022

Oudom Hean and Nanxin Deng

This paper examines disemployment effects of minimum wages during the period 2002–2010.

Abstract

Purpose

This paper examines disemployment effects of minimum wages during the period 2002–2010.

Design/methodology/approach

The authors employ the discontinuity design.

Findings

The authors find that minimum wages had a significant negative impact on teen employment before the Great Recession. During the Great Recession, the disemployment effects of minimum wages were insignificant. The finding is consistent with the evolution of firms’ market power during the business cycle.

Originality/value

The authors attempt to reconcile the debate about the effects of minimum wages on US employment.

Details

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

Keywords

Book part
Publication date: 25 May 2021

Anne Marie Thake

Purpose: The main objective of this study is to provide an overview of the extent of labor and skills shortages that exist in the information and communication technology…

Abstract

Purpose: The main objective of this study is to provide an overview of the extent of labor and skills shortages that exist in the information and communication technology (ICT) sector in Malta and gain insights into the dependency on foreign labor. Methodology: This study draws upon primary data generated from two research instruments, namely in-depth interviews and an online questionnaire. Various in-depth interviews were conducted with key institutional actors. In addition to the interviews, six locally based companies were requested to complete an online questionnaire. Secondary data from ICT surveys, official documents were consulted. Findings: Findings emerged from this study relate to each of the four seminal thematics, namely, demand and supply, rationale for employing foreign labor, wages, and challenges of foreign labor employment. Practical Implications: This study examined the current contribution of foreign labor in the ICT sector. Unsustainable growth in the ICT sector creates a demand for skilled labor which is currently not locally available. Significance: ICT is one of the most rapidly developing economic sectors in Malta. Labor shortages can slow down economic growth, if not addressed. The annual number of ICT graduates is insufficient. For this sector to continue to thrive and further consolidate itself within the Maltese economy, there will be a continued dependency on the importation of highly skilled foreign labor.

Open Access
Article
Publication date: 13 September 2021

Silvio Rendon

This paper aims to weigh the restrictions to job creation imposed by labor market imperfections with respect to financial market imperfections. The authors want to see…

Abstract

Purpose

This paper aims to weigh the restrictions to job creation imposed by labor market imperfections with respect to financial market imperfections. The authors want to see which restriction is more severe, and thus assess which is more powerful in creating permanent employment if it were removed.

Design/methodology/approach

A structural estimation is performed. The policy rules of the dynamic programming model are integrated into a simulated maximum likelihood procedure by which the model parameters are recovered. Data come from the CBBE (Balance Sheet data from the Bank of Spain). Identification of key parameters comes mainly from the observation of debt variation and sluggish adjustment to permanent labor.

Findings

Long-run permanent employment increases up to 69% when financial constraints are removed, whereas permanent employment only increases up to 54% when employment protection or firing costs are eliminated. The main finding of this paper is that the long-run expansion of permanent employment is larger when financial imperfections are removed than when firing costs are removed, even when there are important wage increases that moderate these employment expansions.

Social implications

The removal of firing costs has been suggested by several economists as a result of the analysis of labor market imperfections. These policies, however, face the strong opposition of labor unions. This paper shows that the goals of permanent job creation can be accomplished without removing employment protection but by means of enhancing financial access to firms.

Originality/value

The connection between financial constraints and employment has been studied in recent years, motivated by the Great Recession. However, there is no assessment of how financial and labor market imperfections compare with each other to restrict permanent job creation. This comparison is crucial for policy analysis. This study is an attempt to fill out this gap in the economic literature. No previous research has attempted to perform this very important comparison.

Details

Applied Economic Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 24 February 2020

Sangho Kim

This study investigates the dynamic production structure of the Japanese manufacturing industry by using the adjustment cost approach. The study is to shed some light on…

Abstract

Purpose

This study investigates the dynamic production structure of the Japanese manufacturing industry by using the adjustment cost approach. The study is to shed some light on the unique dynamic structure of the Japanese manufacturing industry. The study attempts to help design and predict industrial policies that are implemented to enhance domestic investments by the Japanese government.

Design/methodology/approach

This study obtains a system of dynamic factor demand and output supply equations by applying the dual approach to the intertemporal value function as represented by the Hamilton–Jacobi equation. By using industrial panel data for 1973–2012 of the Japanese manufacturing industry, the study estimates the system of the behavioral equations and corresponding elasticities. The study uses hypothesis tests and dynamic elasticities to investigate the dynamic structure of the Japanese manufacturing industry.

Findings

Estimation results show that labor and capital are quasi-fixed variables that adjust about 0.2 percent annually to the long-run optimum levels. Estimated adjustment rates are very slow as often presumed about the Japanese manufacturing industry, which uses lifetime employment practice and slow decision-making process in investment decisions. The results also show that output supply and factor demand elasticities vary greatly depending on time horizon. Factor demand increases when its own price increases in the short run, suggesting that factor adjustment is mostly determined factor prices in the past due to sluggish factor adjustment. However, factor demand becomes a normal downward-sloping curve in the long run as factor adjustment gets completed.

Originality/value

Japanese manufacturing firms hire employees through lifetime contract to exploit the benefits of dynamic learning-by-doing and execute investments carefully considering all the possible impacts. Under the strategy, adjustment costs for changing workers and capital stock are minimized. Dynamic adjustment model is expected to shed some light on the unique dynamic structure of the Japanese manufacturing industry. However, researches regarding the dynamic factor adjustment of the Japanese manufacturing industry are hard to find. This study is expected to fill the research vacuum.

Details

Journal of Asian Business and Economic Studies, vol. 28 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 2 July 2018

Stijn Baert, Ann-Sofie De Meyer, Yentl Moerman and Eddy Omey

The purpose of this paper is to study the association between firm size and hiring discrimination against women, ethnic minorities and older job candidates.

1209

Abstract

Purpose

The purpose of this paper is to study the association between firm size and hiring discrimination against women, ethnic minorities and older job candidates.

Design/methodology/approach

The authors merge field experimental measures on unequal treatment with firm-level data. The resulting data enable the authors to assess whether discrimination varies by indicators of firm size, keeping other firm characteristics constant.

Findings

In contrast with the theoretical expectations, the authors find no evidence for an association between firm size and hiring discrimination. On the other hand, the authors do find suggestive evidence for hiring discrimination being lower in respect of public or non-profit firms (compared to commercial firms).

Social implications

To effectively combat hiring discrimination, one needs to understand its driving factors. In other words, to design adequate policy actions, targeted to the right employers in the right way, one has to gain insight into when individuals are discriminated in particular, i.e. into the moderators of labour market discrimination. In this study, the authors focus on firm size as a moderator of hiring discrimination.

Originality/value

Former contributions investigated this association within the context of ethnic discrimination only and included hardly any controls for other firm-level drivers of discrimination. The authors are the first to study the heterogeneity in discrimination by firm size with respect to multiple discrimination grounds and control for additional firm characteristics.

Details

International Journal of Manpower, vol. 39 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 7 November 2016

Verena Dill and Uwe Jirjahn

The purpose of this paper is to examine the link between foreign ownership and perceived job insecurity. It takes into account that the link can depend on circumstances…

Abstract

Purpose

The purpose of this paper is to examine the link between foreign ownership and perceived job insecurity. It takes into account that the link can depend on circumstances and type of firm.

Design/methodology/approach

The analysis is based on linked employer-employee data from Germany. The data enable us to account for both employee characteristics and firm characteristics. Most importantly, they allow a detailed analysis of moderating influences.

Findings

The estimates show that there tends to be a positive link between foreign owners and perceived job insecurity. The link is specifically strong for foreign-owned firms with high personnel turnover or poor employment growth. It is also stronger if the foreign-owned firm providing managerial profit sharing. However, the link tends to be negative for foreign-owned firms with product innovations.

Originality/value

Econometric examinations on the link between foreign ownership and perceived job insecurity are scarce. The study contributes to the literature by using linked employer-employee data and provides a detailed analysis of interaction effects.

Details

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

Keywords

Open Access
Article
Publication date: 13 September 2019

Melvin Vooren, Carla Haelermans, Wim Groot and Henriette Maassen van den Brink

The purpose of this paper is to present the results of a discrete choice experiment (DCE) on the competencies of potential information technology (IT)-retrainees. The…

Abstract

Purpose

The purpose of this paper is to present the results of a discrete choice experiment (DCE) on the competencies of potential information technology (IT)-retrainees. The results give insights in the monetary value and relative returns to both soft and hard skills.

Design/methodology/approach

The authors apply a DCE in which the authors propose seven pairs of hypothetical candidates to employers based in the municipality of Amsterdam, the Netherlands. These hypothetical candidates differ on six observable skill attributes and have different starting wages. The authors use the inference from the DCE to calculate the marginal rates of substitution (MRS). The MRS gives an indication of the monetary value of each skill attribute.

Findings

Employers prefer a candidate who possesses a degree in an exact field over a similar candidate from another discipline. Programming experience from previous jobs is the most highly valued characteristic for an IT-retrainee. Employers would pay a candidate with basic programming experience a 53 percent higher starting wage. The most high-valued soft skill is listening skills, for which employers are willing to pay a 46 percent higher wage. The results of this paper show that both hard and soft skills are important, but not all soft skills are equally important.

Originality/value

The results on the returns to skills provide guidelines to tailor IT training and retraining programs to the needs of the business environment. A key strength of this paper is that the authors have information on the preference orderings for different skills and kinds of experience.

Details

International Journal of Manpower, vol. 40 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 7 March 2016

Ricardo Monge-González, Juan Antonio Rodríguez-Alvarez and Juan Carlos Leiva

The purpose of this paper is to estimate the impact of one productive development program (PROPYME) in a developing nation like Costa Rica. This program seeks to increase…

Abstract

Purpose

The purpose of this paper is to estimate the impact of one productive development program (PROPYME) in a developing nation like Costa Rica. This program seeks to increase the capacity of small and medium-sized firms (SMEs) to innovate.

Design/methodology/approach

Impacts have been estimated assuming that beneficiary firms are trying to maximize their profits and that PROPYME aims to increase these firms productivity. The impacts were measured in terms of three result variables real average wages employment demand and the probability of exporting. A combination of fixed effects and propensity score matching techniques was used in estimations to correct for any selection bias. The authors worked with panel data companies treated and untreated for the period 2001-2011.

Findings

PROPYME’s beneficiaries performed better than other firms in terms of labor demand and their probability of exporting. In addition, the dose and the duration of the effects of the treatment (timing effects) are important.

Originality/value

The authors study the impact in ways that go beyond the average treatment effects on the treated (ATT) usually estimated in the existing literature. Specifically, the research focusses on the identification of the timing or dynamic effects (i.e. how long should we wait to see results?) and treatment intensity (dosage effects).

Propósito

Se estima el impacto de un programa de desarrollo productivo (Propyme) en un país en vías de desarrollo como Costa Rica. El Propyme busca incrementar la capacidad innovadora de las pequeñas y medidas empresas (pymes) costarricenses.

Diseño/metodológico

el impacto se ha estimado y evaluado asumiendo que las pymes beneficiaras buscan maximizar sus beneficios y que Propyme se enfoca en incrementar la productividad de esas empresas. El impacto se valoró en función de tres variables: salarios reales medios, empleo demandado y la probabilidad de exportar. Se utilizó una combinación de técnicas de efectos fijos y emparejamiento en las estimaciones con el fin de prevenir sesgos de selección. Se trabajó con un panel de datos, incluyendo empresas tratadas (beneficiarias de Propyme) así como no tratadas para el periodo 2001-2011.

Hallazgos

los beneficiarios de Propyme tuvieron mejor desempeño que las restantes empresas en términos de empleo demandado y su posibilidad de exportar. Adicionalmente los efectos dinámicos (dosis y duración) de los tratamientos son importantes.

Originalidad y valor

este artículo evalúa el impacto de una forma que va más allá de lo usual en la literatura por medio de los efectos promedios de los tratamientos sobre los beneficiarios. Esto por cuanto se enfoca en efectos dinámicos como la duración así como la intensidad.

Article
Publication date: 2 April 2020

Jhon J. Mora and Juan Muro

The article clarifies the wage–employment relation in a developing country. Several years ago, many articles in the United States indicated that the relation between…

Abstract

Purpose

The article clarifies the wage–employment relation in a developing country. Several years ago, many articles in the United States indicated that the relation between increasing wages and increasing unemployment is unclear. These articles from the United States are insufficient to be applicable to all countries, especially developing countries such as Colombia where institutions and the wage–employment relation differ from those in the United States.

Design/methodology/approach

A meta-analysis methodology was used as 28 estimates of long-run wage–employment elasticity in Colombia from 1998 to 2016 were analyzed.

Findings

This article provides insights into how real wages affect employment. Despite publication biases, results showed that a 1% increase in wages results in a 0.11% decline in employment in the long run.

Research limitations/implications

Due to the publication bias, it is not considered how variables such as sectors, estimation strategies (panel data, partial adjustment, cointegration and non-linear least squares, among others), formal/informal urban sectors, government services and transportation, and qualified and unskilled workers affect the true elasticity value.

Practical implications

This paper includes implications for public policy because the results are important to minimum wages policy in a developing country.

Originality/value

There are no studies regarding the wage–employment relation in a developing country. The empirical results obtained in this article are useful for regulators, policy makers and researchers to understand whether employment is affected by real wages.

Details

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

Keywords

Article
Publication date: 27 April 2022

Irene Brunetti, Enrica Maria Martino and Andrea Ricci

This paper analyses the effect of a particular Active Labour Market Policy, the hiring incentives, on firms hiring policies. The effects of a programme on firms' behaviour…

Abstract

Purpose

This paper analyses the effect of a particular Active Labour Market Policy, the hiring incentives, on firms hiring policies. The effects of a programme on firms' behaviour have in fact rarely been evaluated.

Design/methodology/approach

The analysis is based on micro-data drawn from Rilevazione su Imprese Lavoro (RIL), conducted by Inapp in 2010, 2015 and 2018 on a representative sample of limited liability and partnership firms. The authors apply a policy evaluation framework to investigate the impact of the use of incentives in the short run. The authors infer the counterfactual policy scenario thanks to a survey question that asks about firms' behaviour in the absence of the incentives. The authors also control for firms' unobserved heterogeneity, including firm's fixed effects, and endogeneity issues, estimating a differences-in-differences model that exploit the longitudinal component of the RIL survey.

Findings

The authors find that the use of at least one incentive scheme in 2017 is associated with an increase in the share of newly hired of about 0.07 percentage point in the short run. Moreover, hiring incentives have a small positive relationship with the share of both young workers and temporary contracts. Finally, these results are robust to endogeneity issues.

Originality/value

The analysis provides an updated evaluation of the effectiveness of hiring incentives in Italy by focusing on firms' behaviour rather than on the evolution of individual employment. It identifies the impact by using a rich set of econometric methods as well as counterfactual analysis.

Details

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

Keywords

1 – 10 of 43