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Article
Publication date: 2 November 2015

Ali Fakih and Pascal L. Ghazalian

Labour market constraints constitute prominent obstacles to firm development and economic growth of countries located in the Middle East and North Africa (MENA) region. The…

Abstract

Purpose

Labour market constraints constitute prominent obstacles to firm development and economic growth of countries located in the Middle East and North Africa (MENA) region. The purpose of this paper is to examine the implications of firm characteristics, national locations, and sectoral associations for the perceptions of firms concerning two basic labour market constraints: labour regulations and labour skill shortages.

Design/methodology/approach

The empirical analysis is carried out using firm-level data set sourced from the World Bank’s Enterprise Surveys database. A bivariate probit estimator is used to account for potential correlations between the errors in the two labour market constraints’ equations. The authors implement overall estimations and comparative cross-country and cross-sector analyses, and use alternative estimation models.

Findings

The empirical results reveal some important implications of firm characteristics (e.g. firm size, labour compositions) for firm perceptions of labour regulations and labour skill shortages. They also delineate important cross-country and cross-sector variations. The authors also find significant heterogeneity in the factors’ implications for the perceptions of firms belonging to different sectors and located in different MENA countries.

Originality/value

Reforms in labour regulations and investment in human capital are important governmental policy interventions for promoting firm development and economic growth in the MENA region. This paper contributes to the empirical literature by analysing the factors influencing the perceptions of firms located in the MENA region concerning labour regulations and labour skill shortages. It provides policy-makers with information needed in the design of labour policies that attenuate the impacts of labour market constraints and enhance the performance of firms and the long-run economic growth.

Details

International Journal of Manpower, vol. 36 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 December 2005

Karl Aiginger

The purpose of this paper is to reassess the relative impact of labour market regulation on economic performance. Inflexible labour markets combined with high welfare costs are…

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Abstract

Purpose

The purpose of this paper is to reassess the relative impact of labour market regulation on economic performance. Inflexible labour markets combined with high welfare costs are often thought to be the main cause of low growth in Europe.

Design/methodology/approach

This paper compares the impact of labour market regulation to that of macroeconomic policies (such as fiscal policy, monetary policy, macroeconomic cost management) and to that of investment into future growth (such as research, education and the diffusion of technology). We develop for this purpose a highly stylised model explaining economic growth; we suggest a synthetic measure of performance and use data for the US and Europe for the empirical test.

Findings

The main result is that regulation impacts on growth, the impact of regulatory change is, however, less easy to demonstrate. The impact of macro economic policy can be demonstrated first by the more growth oriented monetary and fiscal policy in the US and the success of some European countries in bringing private and public costs in line with productivity and tax revenues. However, boosting investment into future growth by encouraging research, education and technology diffusion seems to be the most important determinant of performance.

Research limitations/implications

As to the limits of this paper, we have to acknowledge that our analysis refers to a short time period, a small number of countries and uses a highly stylised model.

Practical implications

If the results can be replicated for larger data sets and by more elaborated technical methods, the findings have an important policy implication: country strategies relying only on deregulation, without complementary macroeconomic policy and without strategy to boost “growth drivers” are suboptimal. This questions the policy advice given by some economists and economic think tanks, which call for deregulation as main policy strategy and then expect market forces to boost growth quickly and without specific policy measures.

Originality/value

The attempt to assess the relative impact of the three policy areas is specific to this paper; most other papers focus on one policy area only.

Details

Journal of Economic Studies, vol. 32 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 30 November 2021

Priyaranjan Jha and Rana Hasan

The purpose of this paper is to understand labor market regulations and their consequences for the allocation of resources.

Abstract

Purpose

The purpose of this paper is to understand labor market regulations and their consequences for the allocation of resources.

Design/methodology/approach

This paper constructs a theoretical model to study labor market regulations in developing countries and how it affects the allocation of resources between the less productive informal activities and more productive formal activities. It also provides empirical support for some theoretical results using cross-country data.

Findings

When workers are risk-averse and the market for insurance against labor income risk is missing, regulations that provide insurance to workers (such as severance payments) reduce misallocation. However, regulations that simply create barriers to the dismissal of workers increase misallocation and end up reducing the welfare of workers. This study also provides some empirical evidence broadly consistent with the theoretical results using cross-country data. While dismissal regulations increase the share of informal employment, severance payments to workers do not.

Research limitations/implications

The empirical exercise is constrained by the lack of availability of good data on the informal sector.

Originality/value

The analysis of the alternative labor market regulations analyzed in this paper in the presence of risk-averse workers is an original contribution to the literature.

Details

Indian Growth and Development Review, vol. 15 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Book part
Publication date: 23 November 2020

Judith Liu

This chapter estimates the impact of a transitory reduction in hours during physicians' early career on their long-term labor supply, using the work-hour regulations on medical…

Abstract

This chapter estimates the impact of a transitory reduction in hours during physicians' early career on their long-term labor supply, using the work-hour regulations on medical residents as the source of exogenous variation. The results show that exposure to the regulations significantly decreases practicing physicians' labor supply by about 4 hours per week on average, with female physicians being more responsive to a given reduction in early career hours. Distributional results using a changes-in-changes model confirm that the regulations primarily affect the upper end of the work-hour distribution. To reveal potential mechanisms of these effects, this study finds that the reform increases the probabilities of marriage and having a child, as well as the total number of children, for female physicians. In contrast, it does not have a significant impact on marriage and fertility outcomes for male physicians. These findings provide a better understanding of physicians' hours of work in response to the reform over time and the role of gender with respect to labor supply behavior and family formation decisions.

Details

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

Keywords

Article
Publication date: 13 September 2011

FangLee Cooke

The purpose of this paper is to chart the sharp rise of informal employment in urban China in the last decade. It investigates the role of labour market regulations in shaping…

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Abstract

Purpose

The purpose of this paper is to chart the sharp rise of informal employment in urban China in the last decade. It investigates the role of labour market regulations in shaping employment relations for those engaged in this form of employment and their employment outcome. It also examines various forms of organization and representation of these workers and the extent to which these mechanisms meet their needs.

Design/methodology/approach

This paper draws on secondary and first‐hand empirical data. The secondary data come mainly from media sources and academic publications in China. The empirical data from interviews that the author has conducted with the labour authorities, trade union officials, workers, senior managers and owner CEOs of private firms in several cities.

Findings

The paper concludes that the inadequacy of the function of employment agencies, the absence of a functioning social security system for workers in informal employment, and the lack of effective enforcement of employment‐related regulations mean that the majority of the growing force of workers in this category will continue to be under‐protected and disadvantaged.

Research limitations/implications

This paper draws information from secondary data and a small number of interviews with key stakeholders in employment relations. Future research should conduct a larger study focusing on the views and experience of workers in the informal sector.

Practical implications

This study reveals some skills gaps and training needs for trade union officials. It also brings to the policy makers' attention some loopholes in the labour regulations and their implementation.

Social implications

The paper argues that providing decent employment conditions and work environment remains a key challenge to all concerned but is crucial to the well‐being of workers and their families.

Originality/value

The paper examines the efficacy of labour regulations in protecting workers in the informal sector in China by investigating the roles of different institutional actors. It adopts a relational and institutional approach to study the issue.

Details

Journal of Chinese Human Resources Management, vol. 2 no. 2
Type: Research Article
ISSN: 2040-8005

Keywords

Article
Publication date: 18 October 2018

Jiangtao Li, Jianyue Ji and Yi Zhang

There is no conclusive whether environmental regulation is a constraint or an incentive to the production development. The purpose of this paper is to analyze the non-linear…

Abstract

Purpose

There is no conclusive whether environmental regulation is a constraint or an incentive to the production development. The purpose of this paper is to analyze the non-linear effects of environmental regulations on economic outcomes from the combined perspective of labor productivity and environmental regulation costs.

Design/methodology/approach

Under the assumption of maximizing the utility of residents and maximizing the profit of firms, this research introduces a mathematical model that incorporates the promotion effect of environmental regulations on labor productivity and the costs of environmental regulations. On this basis, the authors analyze the non-linear relationship between environmental regulations and economic outcomes theoretically. This paper also conducts an empirical test using the panel data of 28 provinces in China from 1998 to 2015 through threshold regression.

Findings

Theoretical analysis shows that environmental regulations impose both the environmental regulation cost effect and the compensation effect on the labor productivity enhancement. The ultimate impact of environmental regulation on economic outcomes depends on the comparison of these two effects. Under the different intensities of environmental regulation, the magnitude of these two effects may not be equal. The empirical results further confirm the nonlinear relationship between environmental regulations and economic outcomes.

Originality/value

Previous studies have neglected the role of environmental regulations in improving labor productivity. This work’s main contribution is to propose a novel framework to study the non-linear relationship between environmental regulation and the growth of economic outcomes from perspective of labor productivity and the costs of environmental regulations.

Details

Management of Environmental Quality: An International Journal, vol. 30 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Book part
Publication date: 20 July 2017

Neal M. Ashkanasy, Ashlea C. Troth, Sandra A. Lawrence and Peter J. Jordan

Scholars and practitioners in the OB literature nowadays appreciate that emotions and emotional regulation constitute an inseparable part of work life, but the HRM literature has…

Abstract

Scholars and practitioners in the OB literature nowadays appreciate that emotions and emotional regulation constitute an inseparable part of work life, but the HRM literature has lagged in addressing the emotional dimensions of life at work. In this chapter therefore, beginning with a multi-level perspective taken from the OB literature, we introduce the roles played by emotions and emotional regulation in the workplace and discuss their implications for HRM. We do so by considering five levels of analysis: (1) within-person temporal variations, (2) between persons (individual differences), (3) interpersonal processes; (4) groups and teams, and (5) the organization as a whole. We focus especially on processes of emotional regulation in both self and others, including discussion of emotional labor and emotional intelligence. In the opening sections of the chapter, we discuss the nature of emotions and emotional regulation from an OB perspective by introducing the five-level model, and explaining in particular how emotions and emotional regulation play a role at each of the levels. We then apply these ideas to four major domains of concern to HR managers: (1) recruitment, selection, and socialization; (2) performance management; (3) training and development; and (4) compensation and benefits. In concluding, we stress the interconnectedness of emotions and emotional regulation across the five levels of the model, arguing that emotions and emotional regulation at each level can influence effects at other levels, ultimately culminating in the organization’s affective climate.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78714-709-6

Keywords

Article
Publication date: 3 April 2017

Cristina Inversi, Lucy Ann Buckley and Tony Dundon

The purpose of this paper is to advance a conceptual analytical framework to help explain employment regulation as a dynamic process shaped by institutions and actors. The paper…

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Abstract

Purpose

The purpose of this paper is to advance a conceptual analytical framework to help explain employment regulation as a dynamic process shaped by institutions and actors. The paper builds on and advances regulatory space theory.

Design/methodology/approach

The paper analyses the literature on regulatory theory and engages with its theoretical development.

Findings

The paper advances the case for a broader and more inclusive regulatory approach to better capture the complex reality of employment regulation. Further, the paper engages in debates about the complexity of employment regulation by adopting a multi-level perspective.

Research limitations/implications

The research proposes an analytical framework and invites future empirical investigation.

Originality/value

The paper contends that existing literature affords too much attention to a (false) regulation vs deregulation dichotomy, with insufficient analysis of other “spaces” in which labour policy and regulation are formed and re-formed. In particular, the proposed framework analyses four different regulatory dimensions, combining the legal aspects of regulation with self-regulatory dimensions of employment regulation.

Details

Employee Relations, vol. 39 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 8 November 2013

Rana Hasan, Devashish Mitra and Asha Sundaram

This study aims to focus on the role of labor regulation and credit market imperfections, in addition to that of factor endowments, in determining capital intensities in Indian…

1182

Abstract

Purpose

This study aims to focus on the role of labor regulation and credit market imperfections, in addition to that of factor endowments, in determining capital intensities in Indian manufacturing.

Design/methodology/approach

The paper considers an alternative approach to identifying the effects of India ' s labor regulations on industrial performance. In particular, the paper uses a measure of the stringency of labor regulations across countries – one that is completely independent of the India-specific measures used by earlier studies – and examines its relationship with capital intensities across manufacturing industries. Additionally, since labor regulations are unlikely to be the only reason for imperfections in factor markets, the paper also examines whether and to what extent capital market imperfections affect capital intensities across manufacturing industries. The paper then presents a case study that seeks to ascertain whether actual capital intensities prevailing in Indian manufacturing in major industry groups from 1989 to 1996 were larger than predicted capital intensities for these industry groups based on relative factor demand functions estimated for the USA (a country with relatively less restrictive labor laws and a more developed financial system) evaluated at Indian wages. Finally, the paper uses a recently available dataset to compare capital intensities in Indian and Chinese manufacturing to investigate the behavior of these two emerging Asian economies since 1980, when they started out with relatively similar socio-economic conditions.

Findings

The paper finds that India uses more capital-intensive techniques of production in manufacturing than countries at similar levels of development (and similar factor endowments), including China. For a majority of manufacturing industries, labor freedom and capital market development are, in addition to factor endowments, important determinants of capital intensity of production techniques used. Results reveal that, controlling for factor prices, India specializes in more capital-intensive varieties within broad industry groups relative to the USA, a more capital-abundant economy.

Originality/value

To the best of the authors ' knowledge, such a study has not been done for any other country. The paper sheds light on the important issue regarding the use of capital-intensive techniques in manufacturing in India, which is a labor-abundant country. The role of labor regulation has been extensively debated and the paper also investigates its role along with the role played by credit market imperfections.

Details

Indian Growth and Development Review, vol. 6 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 1 September 2000

Jonathan C. Morris

Looks at the 2000 Employment Research Unit Annual Conference held at the University of Cardiff in Wales on 6/7 September 2000. Spotlights the 76 or so presentations within and…

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Abstract

Looks at the 2000 Employment Research Unit Annual Conference held at the University of Cardiff in Wales on 6/7 September 2000. Spotlights the 76 or so presentations within and shows that these are in many, differing, areas across management research from: retail finance; precarious jobs and decisions; methodological lessons from feminism; call centre experience and disability discrimination. These and all points east and west are covered and laid out in a simple, abstract style, including, where applicable, references, endnotes and bibliography in an easy‐to‐follow manner. Summarizes each paper and also gives conclusions where needed, in a comfortable modern format.

Details

Management Research News, vol. 23 no. 9/10/11
Type: Research Article
ISSN: 0140-9174

Keywords

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