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Article
Publication date: 5 September 2024

Carlos David Cardona-Arenas

This study assesses the probability of an OECD member country exhibiting high persistence in unemployment duration, considering income inequality, productivity, accumulation of…

Abstract

Purpose

This study assesses the probability of an OECD member country exhibiting high persistence in unemployment duration, considering income inequality, productivity, accumulation of human capital and labor income share in Gross Domestic Product (GDP) between the years 2013–2019.

Design/methodology/approach

To achieve the purpose of the study, a probabilistic analysis with panel data is employed, focusing on 20 OECD countries segmented into two groups: those with high persistence and low persistence in unemployment duration. Probit and Logit models are estimated, marginal changes are analyzed and the models are evaluated in terms of their classification accuracy. Finally, trends in probabilities over time are examined.

Findings

This paper exhibits that countries with higher human capital index, greater labor income share in GDP, and more relevant productivity for well-being reduce their probabilities of experiencing high persistence in unemployment duration. It is observed that Mexico (MEX), Greece (GRC), Italy (ITA), and Turkey (TUR) have elevated probabilities of experiencing high persistence in unemployment duration in the future, while Costa Rica (CRI), Estonia (EST), Slovakia (SVK), Czech Republic (CZE), Lithuania (LTU), Poland (POL), and Israel (ISR) show a marked downward trend in these probabilities. Lastly, countries like the United Kingdom (GBR), Denmark (DNK), Sweden (SWE), Norway (NOR), Netherlands (NLD), Germany (DEU), United States (USA), and Canada (CAN) present minimal risk of experiencing high persistence in unemployment duration in the future.

Research limitations/implications

The measurement of the relationship between development outcomes and persistence in unemployment duration has been scarce. Generally, the literature has focused on the analysis of development and unemployment without delving into the duration of unemployment, let alone persistence in duration.

Practical implications

This paper provides a solid foundation for the formulation of policies aimed at promoting sustainable employment and inclusive economic growth.

Social implications

Based on the findings of the study, two key development policies are proposed. Firstly, the implementation of investment programs in Human Capital to increase productivity is recommended. Resources should be directed towards initiatives that improve the necessary skills and competencies in the labor markets of OECD countries, especially in strategic economic sectors with higher production linkages. Additionally, incentivizing the application of active labor policies is proposed. This entails prioritizing policies aimed at increasing the labor income share in GDP through progressive fiscal reforms that strengthen social safety nets and ensure fair labor standards. Implementing employment programs targeted at vulnerable groups, such as long-term unemployed individuals, youth, female heads of households and marginalized communities, is also recommended to eliminate structural barriers to labor market participation and reduce disparities in unemployment persistence. Adopting these policies can help mitigate the risk of high unemployment duration persistence and foster sustainable and inclusive long-term economic growth.

Originality/value

This is the first study to analyze the probabilities of both developing and developed countries experiencing high persistence in unemployment duration. It specifically evaluates these probabilities over a period of time and also estimates potential outcomes if real investments were made to enhance their human capital, productivity and employability.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 12 September 2024

Biswajit Behera, Rajeev Kumar Panda, Binita Tiwari and Akriti Chaubey

The study aims to develop a hierarchical model for innovative work behaviour (IWB) that can capture the complex associations among the factors contributing to IWB within the…

Abstract

Purpose

The study aims to develop a hierarchical model for innovative work behaviour (IWB) that can capture the complex associations among the factors contributing to IWB within the information technology (IT) sector. To accomplish this, the authors rely on an abductive approach using a graph theoretic model, often called interpretive structural modelling (ISM).

Design/methodology/approach

After conducting an in-depth literature review and using the Delphi method, the authors identified 12 factors (11 enablers and IWB as an outcome). The authors collected data through the Delphi approach by sending the questionnaire to 11 experts from academia and the IT sector who have extensive experience and knowledge relevant to the study. The authors then used the ISM method to analyse the relationships among these factors and understand their driving forces.

Findings

Based on the ISM model and the Matrice d'Impacts Croisés Multiplication Appliquée à un Classement analysis, the authors have identified that inclusive leadership, proactive personality and knowledge creation ability are the variables with strong driving power but weak dependence. Conversely, IWB has strong dependence but weak driving power. These findings suggest that to foster IWB, the organisation should prioritise inclusive leadership, proactive personality and knowledge-creation ability to succeed in challenging times. The study’s findings contribute to the social exchange theory, which explains IWB in a dynamic setting. Additionally, the study helps address the significant concerns that most IT companies face during times of crisis.

Practical implications

The study provides valuable guidance for managers and policymakers who are grappling with the challenges of improving IWB in the IT sector. This study is particularly relevant as the industry is currently navigating an economic recession and facing intense competition from other tech companies launching new products and services.

Originality/value

This research holds great significance for top executives, line managers and policymakers in the IT industry. It sheds light on the relevance and importance of various factors facilitating millennials' IWB.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 19 February 2024

Ambra Poggi

The aim of this paper is to empirically investigate whether social contacts can mediate the way in which current unemployment impacts future unemployment.

Abstract

Purpose

The aim of this paper is to empirically investigate whether social contacts can mediate the way in which current unemployment impacts future unemployment.

Design/methodology/approach

We use 2006–2017 data from the Household Income and Labour Dynamics in Australia (HILDA) survey and a dynamic random-effects model to describe the evolution of individual unemployment status over time.

Findings

Once controlled for the local context where individuals live and create friendships, we find that above-average social contacts reduce unemployment persistence. However, social contacts seem to be slightly less effective in deprived neighborhoods. These findings are consistent with the idea that individuals obtain information about job opportunities through a network of social contacts, and unemployment may lead to a decay of social capital, making it more difficult to find employment in future periods. Our results also show that neighborhood deprivation increases individual unemployment risk, while above-average neighborhood cohesion reduces the probability of unemployment in deprived neighborhoods.

Originality/value

Although many studies have been published on unemployment persistence, to the best of the author's knowledge, this is the first study quantifying the impact of social contacts on unemployment persistence. The study also offers fresh empirical evidence on the impact of neighborhood characteristics on unemployment risk.

Details

International Journal of Manpower, vol. 45 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 6 September 2024

Ziqiong Zhang, Peiliang Sun, Le Wang and Zili Zhang

Counter-hedonic entertainment, characterized by evoking negative emotions in consumers, has emerged as one of the most popular and profitable forms of entertainment in Western…

Abstract

Purpose

Counter-hedonic entertainment, characterized by evoking negative emotions in consumers, has emerged as one of the most popular and profitable forms of entertainment in Western countries. However, this entertainment type is not as popular in China as in Western countries. This study examines whether the free trial of counter-hedonic entertainment can promote the consumption of such entertainment and explores the moderating effect of contextual factors on this relationship.

Design/methodology/approach

This study investigates the promotional effectiveness of the free trial strategy on counter-hedonic entertainment through a quasi-experiment involving the broadcasting of a large-scale free counter-hedonic program. This study has analyzed the counter-hedonic consumption data from 31 major cities in China and employed econometric modeling to test the hypotheses.

Findings

Results show that the free trial of counter-hedonic entertainment can promote the sales of entertainment with similar categories. The follow-up moderation analyses show that the positive effect is amplified on days with less sunlight and for consumers with abundant (vs scarce) financial resources, thereby providing evidence to support the underlying drivers of the positive effect – the need for arousal and confidence frame. Meanwhile, the free trial of counter-hedonic entertainment also has a long-term effect after airing.

Originality/value

Based on existing research on consumers’ counter-hedonic consumption motivation, this study confirms the effectiveness and boundary conditions of the free trial strategy in promoting counter-hedonic entertainment consumption for the first time. The results also offer actionable insights for counter-hedonic entertainment marketers and practitioners.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

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