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Book part
Publication date: 30 September 2021

Albert Wöcke and Helena Barnard

The South African government actively intervenes in the labor market in the pursuit of redress of social injustice. These interventions are complicated by economics and have a…

Abstract

The South African government actively intervenes in the labor market in the pursuit of redress of social injustice. These interventions are complicated by economics and have a direct effect on intentions to turnover. In addition, South Africa has a dual labor market, with a high unemployment rate among lesser skilled workers, and a skills shortage at the top of the labor market.

There are four clear eras in the labor market of post-Apartheid South Africa. The first era was after democratic elections in 1994, when the government focused on nation-building with the introduction of indigenization programs. The second era was characterized by economic prosperity and an intensification of indigenization programs. The third era was characterized by rampant state corruption and increased regulatory uncertainty. During this period, the economy stagnated and unemployment increased. Firms restructured and lower-level workers were retrenched and higher-level skilled workers left the country. In 2018, a new president undertook to grow the South African economy and attract foreign direct investment. Despite these efforts, there was a spike in South Africans emigrating, increasing the turnover of highly skilled South Africans of all races.

Economics and politics create both push and pull factors and many unintended consequences, and the dual labor market reacts differently to labor markets than in developed economies. The lower-skilled employees lose their jobs as the economy contracts, while highly skilled jobs remain difficult to fill. However, skilled professionals nonetheless feel increasingly uncertain about their future employability.

Details

Global Talent Retention: Understanding Employee Turnover Around the World
Type: Book
ISBN: 978-1-83909-293-0

Keywords

Article
Publication date: 18 December 2023

Arpit Gupta and Arya Kumar Srustidhar Chand

The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

Abstract

Purpose

The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

Design/methodology/approach

The authors show theoretically with a model of spillover that if foreign firms (receiving FDI) have a negative spillover effect on domestic firms (not receiving FDI), then the level of capital and skilled workers in the domestic firms falls down. Consequently, the authors conduct an empirical analysis by using system GMM estimation technique on the firm-level data of the Indian organised manufacturing sector.

Findings

The authors show that wage inequality worsens when there is negative spillover effects like competition spillover or skill spillover effect of FDI in India.

Originality/value

To the best of the authors’ knowledge, this is the first attempt to measure the various spillover effects of FDI on the wage inequality in the Indian manufacturing industries by using firm-level data.

Details

Indian Growth and Development Review, vol. 17 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 28 September 2012

William S. Harvey

The purpose of this paper is to explore the labour market experiences of highly skilled migrants from developed countries who are not linguistic or visible minorities in the host…

1375

Abstract

Purpose

The purpose of this paper is to explore the labour market experiences of highly skilled migrants from developed countries who are not linguistic or visible minorities in the host country.

Design/methodology/approach

The results of the paper derive from interviews with 64 highly skilled British migrants in Vancouver. Participants were asked open‐end and closed‐ended questions and the data from the interviews were coded and analysed manually.

Findings

British migrants were divided with their labour market outcomes. Some cited positive experiences such as better responsibility, treatment and salary, while others cited negative experiences such as having to re‐accredit, unduly proving themselves to their employers and not having their international experience recognised.

Research limitations/implications

The results are particular to a single case study, hence they cannot be generalised or taken to represent the experiences of all British skilled migrants in Vancouver.

Practical implications

Governments and organisations should ensure that they fulfil any promises they make to highly skilled migrants before the migration process and manage their expectations. Otherwise they face problems with brain waste and migrant retention in the short term and attracting foreign talent in the long term. They should also consider taking a more flexible approach to recognising foreign qualifications, skills and international experience.

Originality/value

The paper adds to our understanding of migrant groups from countries who share similar social and cultural characteristics to the host population. The paper shows that labour market integration challenges are not exclusive to low skilled visible minority migrants, but also to highly skilled migrants who speak the same first language and have the same skin colour as the majority of the host population.

Details

Employee Relations, vol. 34 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 1 July 2006

Andries de Grip and Maarten H.J. Wolbers

The purpose of this paper is to analyse the extent to which the quality of the jobs of low‐skilled young workers is affected by the structure of education and training systems in…

1359

Abstract

Purpose

The purpose of this paper is to analyse the extent to which the quality of the jobs of low‐skilled young workers is affected by the structure of education and training systems in various European countries. It focuses on the differences between countries providing fairly general education (internal labour market (ILM) contexts) and countries offering more specific vocational education (occupational labour market (OLM) contexts).

Design/methodology/approach

Logistic regression analyses.

Findings

It is found that low‐skilled young workers are worse off in OLM countries than in ILM ones, with respect to employment in a permanent job, employment in a non‐elementary job and participation in continuing vocational training. However, in OLM countries low‐skilled young workers are less often involuntary part‐time employed than those in ILM countries. With regard to participation in continuing vocational training, the ILM‐OLM contrast is larger in manufacturing than in services; regarding employment in a permanent job the reverse is true.

Originality/value

It is shown that the labour market position of low‐skilled young workers is affected by the structure of education and training systems in various European countries. The upgrading of the skills demanded in the European “knowledge economies” will therefore have less severe consequences for low‐skilled young workers in ILM countries than in OLM countries, since the acquisition of occupationally specific skills is organized differently between the two institutional contexts.

Details

International Journal of Manpower, vol. 27 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 January 2004

Jos Sanders and Andries de Grip

This paper analyses whether low‐skilled workers' training participation and task flexibility contribute to their firm‐internal and firm‐external mobility, and find that both…

5110

Abstract

This paper analyses whether low‐skilled workers' training participation and task flexibility contribute to their firm‐internal and firm‐external mobility, and find that both training participation and task flexibility contribute only to firm‐internal employability. However, the workers' participation in training plays a much more explicit role in their firm‐internal career than their task flexibility does, as the former appears to be an important means to increase their opportunities in the firm‐internal labour market. Neither the low‐skilled workers' participation in training nor their task flexibility contributes to their external employability. Task‐flexible, low‐skilled workers are less likely to expect to be externally employable than non‐task flexible workers are. The focus of the low‐skilled workers on their firm‐internal employability can be explained by the fact that such workers usually have more opportunities to improve their position in the firm‐internal labour market than in the external labour market.

Details

International Journal of Manpower, vol. 25 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 February 2001

Martin Falk and Katja Seim

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996…

1258

Abstract

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996 cross‐sectional data for approximately 1,000 West German firms. The empirical evidence indicates that IT capital and high‐skilled labor are complements in the production process: firms with higher IT investment output ratios employ a larger fraction of high‐skilled workers at the expense of unskilled workers. To a lesser extent, the positive IT effect carries through for workers with vocational degrees including masters and technicians. Furthermore, we find that firms’ expectations of the future size of their high‐skilled workforce are positively related to their initial IT investment output ratio. To account for censoring in the employment variables, the empirical analysis uses Powell’s Censored Least Absolute Deviations estimators as well as standard Tobit estimators.

Details

International Journal of Manpower, vol. 22 no. 1/2
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 14 July 2008

Matthias Doepke and Dirk Krueger

We investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire outcome may be…

Abstract

We investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire outcome may be inefficient, there are usually better policies to cure these inefficiencies than the imposition of a child-labor ban. Given this finding, we investigate the potential political-economic reasons behind the emergence and persistence of child-labor legislation. Our investigation is based on a structural dynamic general equilibrium model that provides a coherent and uniform framework for our analysis.

Details

Frontiers of Family Economics
Type: Book
ISBN: 978-1-84950-542-0

Article
Publication date: 16 September 2013

Zouhair Mrabet and Charfeddine Lanouar

The purpose of this paper is to focus on the impact of trade openness and technology import on the change in demand structure of employment toward skilled workers. Because of the…

Abstract

Purpose

The purpose of this paper is to focus on the impact of trade openness and technology import on the change in demand structure of employment toward skilled workers. Because of the limited number of empirical papers done in the case of Tunisia, this research investigates whether these factors had similar effects on relative labor demand in Tunisia to those observed in the international literature.

Design/methodology/approach

For this purpose, the paper uses a manufacturing industries database provided by the Tunisian National Institute, the Quantitative Economic Institute and Comtrade of United Nations for six manufacturing industries. The methodology used here is a panel data technique, and consists of estimating a dynamic relative employment equation.

Findings

Empirical results show that trade liberalization and technology change positively affect relative employment of Tunisian manufacturing industries which confirms the existence of skill biased technological change that contributes to increase the relative demand for skilled workers.

Originality/value

The paper adds to existing literature by studying for the first time the case of Tunisian manufacturing industries by using dynamic model. The paper deals also with an econometrics issues related to the use of suitable estimation methodology in the case of dynamic panel data at macroeconomics level.

Details

African Journal of Economic and Management Studies, vol. 4 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 1 January 1982

A.T. Mallier and M.J. Rosser

While unemployment is reaching new post‐war record levels, concern is being expressed about apparent skill shortages in established occupations in many local labour market areas…

274

Abstract

While unemployment is reaching new post‐war record levels, concern is being expressed about apparent skill shortages in established occupations in many local labour market areas. In Coventry, for example, employment in the engineering industry fell by 9,500 between 1971 and 1976 whilst simultaneously personnel managers were expressing concern about problems in filling vacancies. A number of indicators have been examined to determine whether a shortage situation does exist in the Coventry area and proposals to remedy the situation found are suggested. Attention is also drawn to the implications for general employment prospects in the local economy if action is not taken.

Details

Personnel Review, vol. 11 no. 1
Type: Research Article
ISSN: 0048-3486

Article
Publication date: 17 March 2022

Yu-Cheng Lai and Santanu Sarkar

In this paper, the authors examined the changes in labour unrest and labour quality brought by high labour standards over a considerable period in Taiwan. Then, the authors…

Abstract

Purpose

In this paper, the authors examined the changes in labour unrest and labour quality brought by high labour standards over a considerable period in Taiwan. Then, the authors studied the role of these changes in predicting the inflow of foreign direct investment (IFDI) in the country. To test the role, the authors measured the differences in effects of the two changes on wages, working hours and employment opportunities of skilled female and skilled male workers in FDI-intensive and non-intensive industries.

Design/methodology/approach

Using a model built on pooled cross-sectional time-series data from 1999 to 2012, the authors measured the effect of changes in labour unrest and the presence of skilled workers on the net inflow of FDI. Using data from the Manpower Utilisation Survey (MUS), the authors applied differences–in–Differences-in--ddifferences- (DDD) and differences–in–Differences-in-ddifferences-in--differences- (DDDD) estimation methods to test the effect of changes in labour unrest and labour quality on three labour market outcomes, namely wages, working hours and job opportunities of skilled workforce.

Findings

Increasing labour unrest affected the employment opportunities of almost every unemployed person seeking skilled jobs in Taiwan. When the authors compared the adverse effect of high labour standards on employment opportunities and working hours, the authors found women looking for skilled jobs in foreign-owned firms to be the worst affected. Besides, foreign firms paid different wages to skilled educated men than what foreign firms' domestic counterparts paid to skilled educated men employed in Taiwanese firms.

Practical implications

An in-depth analysis of changes in labour unrest and presence of skilled workers because of high labour standards and the extent to which such changes helped the nation to attract FDI should be useful to policymakers interested in understanding the impact of legislative measures and policy reforms on labour market outcomes across industry types, which matter to foreign investors. If changes in labour unrest and labour quality influenced the inflow of FDI more to firms in one set of industries than the others, the same should have a bearing on revamping of future enactment and enforcement in Taiwan.

Originality/value

Current study findings would not only provide broad lessons to policymakers in Taiwan but findings of the authors' country case study should be able to guide growing economies that are equally careful whilst raising the labour standards as most fear that high labour standards can deter inflow of FDI because of increasing labour cost.

Details

International Journal of Manpower, vol. 43 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

11 – 20 of over 66000