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Open Access
Article
Publication date: 18 June 2021

Thang Ngoc Bach, Hung Ly Dai, Viet Hung Nguyen and Thanh Le

This paper examines the effects of sub-national union coverage on the youth's labor market outcomes.

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Abstract

Purpose

This paper examines the effects of sub-national union coverage on the youth's labor market outcomes.

Design/methodology/approach

In the context of the private business sector in Vietnam, this study link individual labor market data with union coverage at provincial level in the period 2013–2016 to investigate the effects of sub-national union coverage on the youth's labor market outcomes. Contingent on the outcome variable, we use the OLS and probit model that control for diverse individual characteristics, year- and industry-fixed effects, and particularly control for selection bias in the labor market.

Findings

The empirical results show that the union coverage is positively associated with a wide range of the youth's labor market outcomes, including employment status, wage rate, work hour, and job formality. Also, the coverage is complementary to individual labor contract in determining the youth's wage rate.

Practical implication

Our empirical results indicate positive associations between union coverage and the youth's multi-dimensional labor market outcomes, which contribute to this young age cohort's smooth school-to-work transition, provided that the role of trade union is challenged both in developing and developed countries.

Originality/value

This study provides an in-depth study on the interplay between trade union and the youth's labor market outcomes that contributes to the literature of labor market institutions and youth employment policies in a dynamic transitional economy of Vietnam.

Details

Journal of Economics and Development, vol. 24 no. 2
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 23 August 2019

Juan A. Correa, Pablo Gutiérrez, Miguel Lorca, Raúl Morales and Francisco Parro

This paper aims to study the effect of family socioeconomic status (SES) on academic and labor market outcomes.

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Abstract

Purpose

This paper aims to study the effect of family socioeconomic status (SES) on academic and labor market outcomes.

Design/methodology/approach

The authors used a rich data set of administrative records for test scores, individual background and adult earnings of a cohort of agents, covering a period spanning the agents' upper-secondary education and their early years in the labor market.

Findings

The authors find that students with the highest SES obtained a 1.5 standard deviations higher score in the college admission test than students who had the same academic outcomes in the eighth grade test but belong to the lowest SES. Similarly, among students that obtained the same scores in the college admission test, those with the highest SES earned monthly wages 0.7 standard deviations higher than those with the lowest SES.

Originality/value

The findings highlight that family socioeconomic background continues to influence outcomes during individuals’ upper secondary education and early years in the labor market.

Details

Applied Economic Analysis, vol. 27 no. 79
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 8 December 2020

Chiara Mussida and Dario Sciulli

This paper evaluates how the first job when individuals entered the labor market affects the probability of youth being currently employed in formal or informal work in Bangladesh.

Abstract

Purpose

This paper evaluates how the first job when individuals entered the labor market affects the probability of youth being currently employed in formal or informal work in Bangladesh.

Design/methodology/approach

The analysis is based on data from the ILO School-to-Work Transition Surveys. The authors use a full-information maximum likelihood approach to estimate a two-equation model, which accounts for selection into the labor market when estimating the impact of entry status on current work outcomes. The main equation outcome follows a multinomial distribution thus avoiding a priori assumptions about the level of individual’s utility associated with each work status.

Findings

The authors find that entering the labor market in a vulnerable employment position (i.e. contributing family work or self-employment) traps into vulnerable employment and prevents the transition to both informal and, especially, formal paid work. This finding holds when accounting for endogeneity of the entry status and it is valid both in the short and in the long run. Young women are less likely to enter the labor market, and once entered they are less likely to access formal paid wok and more likely to being inactive than young men. Low education anticipates the entry in the labor market, but it is detrimental for future employment prospects.

Originality/value

The findings indicate the presence of labor market segmentation between vulnerable and non-vulnerable employment and suggest the endpoint quality of the school-to-work transition is crucial for later employment prospects of Bangladeshi youth.

Details

International Journal of Manpower, vol. 42 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 18 July 2024

María Cervini-Plá and José I. Silva

This study aims to contribute to the literature by examining the gender gap effects of childcare restrictions. Specifically, not using professional childcare services due to…

Abstract

Purpose

This study aims to contribute to the literature by examining the gender gap effects of childcare restrictions. Specifically, not using professional childcare services due to issues like access, quality or costs. Additionally, we explore the long-run consequences of extended work interruptions for childcare.

Design/methodology/approach

Using a specialized cross-sectional module from the 2018 Spanish Labor Force Survey, we estimated a set of linear regression models to capture the short and long run effects of childcare restrictions in labor market outcomes.

Findings

We identify substantial gender gaps in labor force, employment, full-time employment and hours worked among parents facing childcare constraints. In contrast, parents without such restrictions experience much lower gender gaps. The long-run analysis reveals that mainly career breaks lasting 2 years or more significantly diminish the labor supply and employment rates of mothers.

Originality/value

Our study goes beyond examining the effects of childcare restrictions on mothers’ labor market behavior and explicitly studies the gender disparities related to these restrictions. Moreover, our database includes information on work flexibility for childcare, allowing us to explore whether such flexibility can help mitigate these gender gaps. Additionally, we assess the long-term effects of work interruptions due to childcare responsibilities on women’s labor outcomes.

Details

Applied Economic Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 10 September 2024

Pedro Cavalcanti Gonçalves Ferreira

The paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil.

Abstract

Purpose

The paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil.

Design/methodology/approach

With access to matched employer–employee data from Brazil, we first characterized the evolution of the local labor market concentration (Municipality Herfindahl–Hirschman Index [HHI]). Then, we built a fixed-effect model with instrumental variables to verify the association between the local labor market concentration and wages. Finally, a difference-in-difference (DiD) was implemented to verify whether a merger transaction impacted the workers’ earnings in the Brazilian banking sector.

Findings

The paper’s findings suggest that there may be a negative relationship between market power and workers’ earnings.

Originality/value

This research conducted an in-depth investigation of the labor market power in a developing country. As far as we know, our work is the first to evaluate the extension of local concentration in Brazilian formal labor markets and to illustrate its evolution over the last decades. Additionally, when going through the effects of market concentration on wages, we use a new identification strategy that explores changes in the HHI that are caused by national trends in an industry as a source of exogenous variation. Finally, the last part of the paper assesses the effects of antitrust policy on the labor market, a kind of investigation that is still scarce.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 16 July 2024

Marta Escalonilla, Begoña Cueto and Maria Jose Perez-Villadoniga

This paper aims to analyse the short- and long-term effects of entering the Spanish labour market under tough economic conditions on young immigrant–native earnings and employment…

Abstract

Purpose

This paper aims to analyse the short- and long-term effects of entering the Spanish labour market under tough economic conditions on young immigrant–native earnings and employment outcomes.

Design/methodology/approach

The authors use cohorts, where the entry cohort into the labour market is the unit of observation. As a database, the authors use the continuous sample of working histories covering the period 2007–2021. Then, the authors estimate the model using weighted least squares.

Findings

The results show that the great recession and COVID-19 led to a blockage at the entrance of the labour market, reducing the number of workers. Additionally, the authors observe an adverse impact in terms of employment and earnings on those entering the labour market. Besides, this effect varies in intensity and persistence for natives and immigrants, as well as by country of birth, age of entry, gender and educational level.

Originality/value

A contribution to the literature is the analysis of the earnings and employment trajectories of young people entering the Spanish labour market for the first time during an adverse shock, such as the 2008 economic crisis or the COVID-19 crisis, and the possible differences that exist between native and immigrant workers. So, the authors analyse the labour market trajectories of workers covering the most recent years. Likewise, the authors carry out an extensive heterogeneity analysis in which they distinguish workers by educational level, gender, age of entry into the labour market and immigrants by their country of birth. This represents an additional contribution. The use of a cohort approach also contributes to the existing literature.

Details

Applied Economic Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 12 January 2021

Evans Korang Adjei, Lars-Fredrik Andersson, Rikard H. Eriksson and Sandro Scocco

The purpose of this paper is to examine the effects of immigration on the labour market outcomes of low-educated natives (i.e. residents without a university diploma). Using the…

5689

Abstract

Purpose

The purpose of this paper is to examine the effects of immigration on the labour market outcomes of low-educated natives (i.e. residents without a university diploma). Using the labour market competition theory, which argues that the labour market effects of natives depend on the skill set of immigrants, the paper addresses whether immigrants are complementary to or substitutes for native workers.

Design/methodology/approach

Longitudinal matched employer–employee data on Sweden are used to estimate how low-educated natives, in regions experiencing the greatest influx of refugees from the Balkan wars, responded to this supply shock with regard to real wages, employment and job mobility between 1990 and 2003.

Findings

First, the analysis shows that low-educated native workers respond to the arrival of immigrants with an increase in real wages. Second, although employment prospects in general worsened for low-skilled workers in most regions, this is not attributable to the regions experiencing the largest supply shock. Third, there are indications that low-skilled natives in immigration-rich regions are more likely to change workplace, particularly in combination with moving upwards in the wage distribution.

Originality/value

Rather than seeing an emergence of the commonly perceived displacement mechanism when an economy is subject to a supply shock, the regional findings suggest that high inflows of immigrants tend to induce a mechanism that pulls native workers upwards in the wage distribution. This is important, as the proportion of immigrants is seldom evenly distributed within a nation.

Details

International Journal of Social Economics, vol. 48 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 30 June 2022

Antonio Di Paolo and Alessia Matano

This paper investigates the effects of working during university education on labour market outcomes of university graduates.

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Abstract

Purpose

This paper investigates the effects of working during university education on labour market outcomes of university graduates.

Design/methodology/approach

Based on data from three successive cohorts of graduates from the Spanish region of Catalonia, the authors estimate the effect of having worked in different types of jobs before graduation, classified according to work intensity and the match with the field of study, on the probability of being employed, having a permanent contract or having a job that requires the specific degree four years after graduation. The authors employ a multinomial endogenous treatment model that enables controlling for self-selection into pre-graduation working activities.

Findings

Pre-graduation work activities that are related to the field of study are generally beneficial for employability and job stability. Work experiences unmatched with the degree's content are detrimental for graduates' job–education match.

Originality/value

This is the first paper that jointly considers the role of work intensity (part-time vs full-time) and the relationship with the field of study in a framework that accounts for self-selection into different types of jobs. The authors also contribute to the literature by estimating the effect of pre-graduation jobs not only on the chances of being employed four years after graduation but also on two important aspects of job quality: having a permanent contract and having a job that requires the specific degree.

Details

International Journal of Manpower, vol. 43 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 9 August 2022

Mattia Filomena and Matteo Picchio

This study aims to investigate the heterogeneous results about the impact of temporary jobs on subsequent labour market performances and to provide policymakers with further…

1936

Abstract

Purpose

This study aims to investigate the heterogeneous results about the impact of temporary jobs on subsequent labour market performances and to provide policymakers with further information on the effects of temporary contracts under particular circumstances.

Design/methodology/approach

The authors present a quantitative systematic review on the debate about the “stepping stone vs dead end” hypothesis related to the causal effect of temporary jobs on future labour market performances.

Findings

Among 78 observations from 64 articles, 32% support the hypothesis according to which temporary contracts are a port of entry into stable employment positions, 23% report ambiguous or mixed findings and the remaining 45% provide evidence in favour of the dead end hypothesis. The results from meta-regressions suggest that the stepping stone effect is more likely to emerge when self-selectivity issues are dealt with. The studies focussing on temporary work agency jobs and casual/seasonal jobs support more easily the dead end hypothesis. Finally, in more recent years and when the unemployment rate is larger, the dead end hypothesis is more likely to prevail.

Originality/value

Although many studies have been published on this issue, to the best of the authors’ knowledge, there are no recent analytic economic surveys on the “stepping stone vs dead end” debate. The main contribution of this article is to fill this gap.

Details

International Journal of Manpower, vol. 43 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 24 October 2023

Gülin Öylü, Chiara Natalie Focacci, Luis Serratos-Sotelo, Andreas Motel-Klingebiel and Susanne Kelfve

In this paper, the authors attempt to understand how labour market attachment during the ages of 30–59 influences individuals' transition out of the labour market.

Abstract

Purpose

In this paper, the authors attempt to understand how labour market attachment during the ages of 30–59 influences individuals' transition out of the labour market.

Design/methodology/approach

Using high-quality Swedish register data, the authors follow individuals born in 1950 and observe their labour market attachment during mid-life and their exit from the labour market.

Findings

The authors find evidence that labour market attachment in different stages of the career is differently related to exit from the labour market. At the age of 30, as well as between the ages 50–59, low attachment is related with earlier exit from the labour market. On the contrary, low labour market attachment during the ages 40–49 is related with later exit from the labour market. However, regardless of age, lower labour market attachment increases the risk of work-related benefit receipt in the exit year. The authors also find evidence that gender, migration status and childhood socioeconomic disadvantages may represent obstacles to longer working lives, while high education is a consistent factor in avoiding early exit from the labour market.

Originality/value

This study provides insights on the link between labour market attachment in different stages of the career and the exit from the labour market as well as work-related benefits dependency in the year of exit.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

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