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Book part
Publication date: 2 June 2008

Brati Sankar Chakraborty and Abhirup Sarkar

Most models attempting to give an account of trade-induced symmetric increase in wage inequality have abandoned the factor price equalization (FPE) framework. The present chapter…

Abstract

Most models attempting to give an account of trade-induced symmetric increase in wage inequality have abandoned the factor price equalization (FPE) framework. The present chapter retains the FPE framework and identifies a plausible route through which trade might increase wage inequality in all trading countries. A two-sector model with one constant returns sector producing basic goods and another increasing returns to scale sector producing fancy goods is developed. A quasi-linear utility function is used to capture the divide between basic and fancy goods. There are two types of productive factors, skilled and unskilled labour, and they differ with respect to their occupational options. Skilled labour can work both in the skill using fancy goods sector and in the unskilled labour using basic good producing sector, whereas unskilled labour is tied down to unskilled job. The model holds possibilities of multiple equilibria and under reasonable parameterization skill premium increases in all countries following trade.

Details

Contemporary and Emerging Issues in Trade Theory and Policy
Type: Book
ISBN: 978-1-84950-541-3

Keywords

Article
Publication date: 10 July 2017

Marwan Mohamed, Erika Anneli Pärn and David John Edwards

The purpose of this paper is to present an understanding of the potential impact of Brexit upon the UK construction industry. Specifically, the work analyses the construction…

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Abstract

Purpose

The purpose of this paper is to present an understanding of the potential impact of Brexit upon the UK construction industry. Specifically, the work analyses the construction industry’s reliance upon European Union (EU) skilled labour and seeks to determine the potential impact that Brexit poses upon EU skilled labour entering the sector.

Design/methodology/approach

A perceptual questionnaire survey was used to elicit responses from construction professionals using the two techniques of opportunity and snowballing non-probability sampling. Summary statistical analysis of Boolean and Likert item scale data accrued was employed to elucidate upon respondents’ perceptions.

Findings

The majority of survey participants either “strongly agreed” or “agreed” that the UK construction industry relies upon EU skilled labour and that a career in the sector would not be attractive for foreign skilled labour post-Brexit. Future research proposed includes: predicting future trends in labour supply and demand and deriving new policies to address skills shortage imbalances that may be created by Brexit.

Originality/value

Original insight into an historic and unprecedented moment for the UK construction industry is presented. The work also provides pragmatic recommendations to policy makers and Higher Education Institutes to prevent the risk of Brexit further exacerbating skilled labour shortages within the industry.

Details

International Journal of Building Pathology and Adaptation, vol. 35 no. 3
Type: Research Article
ISSN: 2398-4708

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Article
Publication date: 3 August 2020

Manash Ranjan Gupta

This study aims to focus on the effects of economic globalisation programme on the problems of criminal activities and on the degree of skilled–unskilled wage inequality.

Abstract

Purpose

This study aims to focus on the effects of economic globalisation programme on the problems of criminal activities and on the degree of skilled–unskilled wage inequality.

Design/methodology/approach

A competitive general equilibrium model of a small open economy is developed. Unskilled labour moves from the production sector to the criminal sector. Those who join the criminal sector snatch a part of capitalists’ income and skilled workers’ income to finance their consumption and face positive probability of being caught and punished. The size of the criminal sector and the rental rate on capital are simultaneously determined in the short-run equilibrium of this model where factor endowments are exogenously given at a particular point of time.

Findings

An increase in the capital endowment resulting from an exogenous foreign capital inflow raises demand for labour and wage rates in both the sectors. So, it lowers the rental rate on capital and thus aggravates the problem of skilled–unskilled wage inequality because the skilled labour using sector is more capital intensive than the other production sector. However, it may lower the size of the criminal sector and thus may raise the level of the gross domestic product.

Originality/value

There exists substantial theoretical works on the problem of skilled–unskilled wage inequality, but none of these works focuses on the general equilibrium allocation of unskilled labour to the criminal sector. On the other hand, existing models specialised to analyse theoretical implications of crime and punishment do not focus on the interaction between crime and wage inequality.

Details

Indian Growth and Development Review, vol. 14 no. 1
Type: Research Article
ISSN: 1753-8254

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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

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Article
Publication date: 12 February 2019

Charilaos Mertzanis and Mona Said

The purpose of this paper is to examine the role of access to skilled labor in explaining firms’ sales growth subject to the controlling influence of a wide range of firm-specific…

Abstract

Purpose

The purpose of this paper is to examine the role of access to skilled labor in explaining firms’ sales growth subject to the controlling influence of a wide range of firm-specific characteristics and country-level economic and non-economic factors.

Design/methodology/approach

The analysis uses a consistent and large firm-level data set from the World Bank’s Enterprise Surveys that includes 138 developing countries. An instrumental variables model with a GMM estimator is used for estimating the impact of access to skilled labor on firm performance. In order to obtain more robust estimators, the analysis introduces country-level controls reflecting the influence of economic and institutional factors, such as economic and financial development, institutional governance, education and technological progress.

Findings

The results document a significant and positive association between access to skilled labor and firm performance in the developing world. The explanatory power of access to skilled labor remains broadly robust after controlling for a wide range of firm-specific characteristics: sectoral and geographical influences matter. The results also show that the association between labor skill constraints and firm performance is mitigated by country-level factors but in diverse ways. Development, institutions, education and technological progress exert various mitigating effects on firm-level behavior regarding access to skilled labor.

Originality/value

The paper’s novel contribution is threefold: first, it uses joint firm, sector and country-level information to analyze the role of access to skilled labor on firm performance; second, it uses consistently produced information at the firm level from 138 developing countries; and, third, it considers the controlling impact of a wide range of country-level factors that reflect a country’s overall development, institutions and evolution.

Details

International Journal of Manpower, vol. 40 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 8 May 2017

Paulo de Andrade Jacinto, Eduardo Pontual Ribeiro and Tulio Cravo

The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology…

Abstract

Purpose

The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology output growth and skill-biased technical change.

Design/methodology/approach

This study relies on a rich and unique matched employer-employee data set for manufacturing sector, from 1996 to 2003. The analysis considers a translog functional form labor demand system estimated using seemingly unrelated regression and instrumental variables to control for possible measurement errors and wages and output endogeneity.

Findings

The demand function estimates suggest that: labor demand underlying technology is non-homothetic, research and development investment is biased toward skilled workers, the non-homothetic technology is not skill biased so output changes contributed positively for skilled labor increase, relative wages played a significant role and international trade has little explanatory power explaining labor demand shifts.

Originality/value

This is the first paper that considers alternative explanations for the increase in the demand of skilled workers for manufacturing in Brazil simultaneously: changes in relative wages, output changes with non-homothetic technology, skill-biased technical change and, to a lesser extent, international trade. The study challenges current empirical evidence that considers trade and trade liberalization as the main factor explaining labor demand shifts.

Details

Journal of Economic Studies, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 1 February 1983

Abbas Salih Mehdi and Olive Robinson

Iraq with a population of approximately 13 million in 1980 is one of the capital (oil) rich countries of the Arab region, and shares with them the objective of a fast pace of…

Abstract

Iraq with a population of approximately 13 million in 1980 is one of the capital (oil) rich countries of the Arab region, and shares with them the objective of a fast pace of economic development. Such Arab states may be characterised by the existence of a large and expanding government sector, ambitious industrial development programmes and the pursuit of an increasing standard of welfare and income for their inhabitants. Since about 1970 Iraq's economy has been radically transformed and change is continuing. The demand for labour has grown commensurately with the successive national development plans of the decade. Meeting these increased labour requirements presents formidable tasks for policy makers and planners in Iraq as in other Arab countries.

Details

International Journal of Manpower, vol. 4 no. 2
Type: Research Article
ISSN: 0143-7720

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 (ICT…

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.

Book part
Publication date: 11 May 2017

Golo Henseke and Francis Green

Utilizing work task data drawn from the OECD’s Survey of Adult Skills of 2011–2012 and 2014–2015, we derive a new skills-based indicator of graduate jobs, termed ISCO(HE)2008, for…

Abstract

Utilizing work task data drawn from the OECD’s Survey of Adult Skills of 2011–2012 and 2014–2015, we derive a new skills-based indicator of graduate jobs, termed ISCO(HE)2008, for 31 countries. The indicator generates a plausible distribution of graduate occupations and explains graduates’ wages and job satisfaction better than hitherto existing indicators. Unlike with the traditional classifier, several jobs in major group 3 “Technicians and Associate Professionals” require higher education in many countries. Altogether, almost a third of labor is deployed in graduate jobs in the 31 countries, but with large cross-national differences. Industry and establishment-size composition can account for some of the variation. In addition, two indicators of the relative quality of the higher education system also contribute to the variation in the prevalence of graduate jobs across countries.

Details

Skill Mismatch in Labor Markets
Type: Book
ISBN: 978-1-78714-377-7

Keywords

Book part
Publication date: 1 May 2023

Jia Wang and Wei-Chiao Huang

Due to greater returns to high skill and desirable amenities, high-skilled workers are increasingly agglomerating in metropolitan areas and form path dependence. This chapter…

Abstract

Due to greater returns to high skill and desirable amenities, high-skilled workers are increasingly agglomerating in metropolitan areas and form path dependence. This chapter explores whether the land supply policy of China constraining big cities' urban construction land quota strengthens the spatial divergence of human capital. Using city-level land supply data, population census data, and land transaction micro data, we find that the higher the degree of a city's land supply lagging behind land demand, the greater the enlargement effect of the initial share of population with college degrees on the increase in share of population with college degrees. Further research reveals that the main mechanism causing this phenomenon is the rapidly rising housing prices hindering low-skill labor flows to big cities.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-80382-401-7

Keywords

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