Search results
1 – 10 of 326Iman Cheratian, Saleh Goltabar and Carla Daniela Calá
During recent years, the long-run relationship between the unemployment rate (UR) and the labor force participation (LFP) rate has been examined in-depth in developed and…
Abstract
Purpose
During recent years, the long-run relationship between the unemployment rate (UR) and the labor force participation (LFP) rate has been examined in-depth in developed and developing economies. This paper aims to explore this relationship for Iranian women in 31 provinces from 2005Q2 to 2019Q1.
Design/methodology/approach
To examine the existence of a long-run relationship between female LFP and UR, the time-series cointegration approach has been used. Furthermore, regarding the low power of the univariate cointegration approach, the authors consider a panel version of the cointegration tests developed by Westerlund.
Findings
Both time-series cointegration tests and panel cointegration test support the unemployment invariance hypothesis for most Iranian provinces, especially the most religious ones. As it implies an invariance to supply side policies, it seems that reducing legal and cultural barriers could be more relevant to decrease female UR and increase LFP than training programs or R&D policies. The present results also suggest that, for this group of regions, a more centralized policy design could be appropriate, instead of a regional one.
Originality/value
This study investigates whether the unemployment invariance hypothesis holds for Iran, which has not been analyzed before for the Iranian labor market. Moreover, the study adopts a regional approach, which takes into account the huge regional differences in Iran.
Details
Keywords
Aysit Tansel and Zeynel Abidin Ozdemir
The purpose of this paper is to explore the long-run relationship between unemployment rate (UR) and labor force participation rate (LFPR) for men and women in Canada. Given that…
Abstract
Purpose
The purpose of this paper is to explore the long-run relationship between unemployment rate (UR) and labor force participation rate (LFPR) for men and women in Canada. Given that there are differences in the URs and participation rates of men and women, the authors perform separate analysis for them also.
Design/methodology/approach
The authors use co-integration analysis to investigate the existence of a long-run relationship between UR and LFPR in Canada using time series monthly data for the past 40 years.
Findings
The finding that there is long-run relationship between UR and LFPR leads the authors to doubt the pertinence of the unemployment invariance hypothesis for Canada. The authors further find evidence for added-worker effect for men and discouraged-worker effect for women in Canada and the authors elaborate on the possible explanations for this seemingly contradictory finding.
Practical implications
The lack of support for the unemployment invariance hypotheses implies that changes in the participation rate which may be due to aging population, policies of early retirement or constraints on working time will affect the UR in the long run.
Originality/value
This paper investigates the unemployment invariance hypothesis in Canada to come up with policy implications about long-run UR. The authors further elaborate on the possible explanations for the added-worker effect for men and the discouraged-worker effect for women that the authors find in this study.
Details
Keywords
Francesco Nemore, Rocco Caferra and Andrea Morone
Our main purpose is to test the unemployment invariance hypothesis in Italy.
Abstract
Purpose
Our main purpose is to test the unemployment invariance hypothesis in Italy.
Design/methodology/approach
This paper provides an empirical investigation of the unemployment and labor force participation in Italy.
Findings
Cointegration analysis results strongly suggest a clear long-run relationship between unemployment and labor force participation revealing a persistent and general added worker effect.
Originality/value
Our results seem to confute the unemployment invariance hypothesis.
Details
Keywords
Isiaka Akande Raifu and Oluwafemi Mathew Adeboje
The purpose of this study is to examine the existence of discouraged worker effect hypothesis and unemployment invariance hypothesis in Africa, including its five regional groups…
Abstract
Purpose
The purpose of this study is to examine the existence of discouraged worker effect hypothesis and unemployment invariance hypothesis in Africa, including its five regional groups. Specifically, the study tests the existence of co-integration between different categories of labour force participation and unemployment rate, total male and female labour force participation and the unemployment rate for age brackets 15–24, 15–64 and 15+, respectively.
Design/methodology/approach
The study uses the data of 52 countries in Africa which cover the period from 1991 to 2018. Three co-integration estimation techniques namely, the Kao co-integration test, Pedroni co-integration test and Westerlund co-integration test are used to validate the existence of co-integration between the labour force participation and unemployment rate. The dynamic ordinary least square is further used to explore the impact of the unemployment rate on labour force participation, while the pooled ordinary least squares (POLS) that accounts for individual country and time effects is employed for robustness check.
Findings
Except for Southern Africa, it is found that the discouraged worker effect hypothesis holds in Africa and the rest of its regions. This suggests that there is a long-run relationship between labour force participation rate and unemployment rate irrespective of age group and gender classifications. To some extent, the authors discover the existence of cross-sectional dependence in the panel. There is also an inverse relationship between labour force participation and the unemployment rate. This implies that when the unemployment rate is high, labour force participation tends to decline. The results are, however, sensitive to the choice of estimation method.
Research limitations/implications
The study is limited to the examination of linear co-integration between labour force participation and the unemployment rate in Africa and its five regions. The future study can investigate the possibility of a nonlinear or an asymmetric relationship between labour for participation and the unemployment rate.
Social implications
Thus, a policy framework that would generate employment creation is greatly required in Africa.
Originality/value
To the best of the authors’ knowledge, this is a pioneer work that addresses the issue of co-integration between labour force participation and unemployment rate for Africa and its five regions taking into consideration gender and age brackets of labour force participation and unemployment.
Details
Keywords
We test the pertinence of the unemployment invariance hypothesis (UIH) for a set of Organisation for Economic Co-operation and Development countries.
Abstract
Purpose
We test the pertinence of the unemployment invariance hypothesis (UIH) for a set of Organisation for Economic Co-operation and Development countries.
Design/methodology/approach
We empirically investigate the nexus between unemployment and labour force participation employing structural vector autoregressive methods for panel data.
Findings
We find that shocks in unemployment produce long-lasting, negative effects on participation, testifying to a discouraged worker effect.
Originality/value
Our results do not support the validity of the UIH in high-income economies. This has relevant implications for policy making and macroeconomic models.
Details
Keywords
Jaakko Pehkonen, Hector Sala and Pablo F. Salvador
This paper aims to provide an account of the unemployment performance of two Nordic countries during their recent labour market booms and slumps.
Abstract
Purpose
This paper aims to provide an account of the unemployment performance of two Nordic countries during their recent labour market booms and slumps.
Design/methodology/approach
Based on the empirical models of Karanassou et al., we conduct dynamic simulation exercises and explore the determinants of unemployment.
Findings
The analysis yields two main findings. First, the capital stock was the most important determinant of the unemployment trajectory in both countries. This result appears in all periods considered: in the slump of the early 1990s and the boom of the late 1990s, as well as in the stabilisation period of the early 2000s. Second, the role of the foreign sector on the unemployment trajectory was significant in Finland, its quantitative impact being one‐third of the effect for the capital stock in the first and third periods, and half of the latter in the second period.
Originality/value
The results illustrate the importance of non‐standard labour market variables in examining unemployment trajectories. The findings call for a wider than usual perspective in trying to solve the unemployment problem.
Details
Keywords
Maxim Kovalenko and Dimitri Mortelmans
Individual employability has become a crucial element in ensuring labor security in flexibilizing labor markets. The importance of agency-side factors as antecedents of…
Abstract
Purpose
Individual employability has become a crucial element in ensuring labor security in flexibilizing labor markets. The importance of agency-side factors as antecedents of employability has been emphasized in the relevant literature, spurring the criticism that some worker groups may be more restricted than others by contextual factors in respect to their employment prospects. The purpose of this paper is to examine empirically how labor market groups differ in what shapes their employability.
Design/methodology/approach
The authors used a representative sample of 1,055 employees to detect differences in the impact of career self-directedness (agency-side) and several contextual factors (structure-side) on employability, comparing workers with and without higher education and workers in and outside managerial positions. Confirmatory factor analysis with subsequent tests of invariance was used.
Findings
Results confirm that employability is affected both by contextual factors and by self-directedness. No significant differences were observed between the compared groups in the extent to which self-directedness and the contextual factors influence employability. An important finding is that self-directedness itself is affected by preceding career history (career mobility and previous unemployment), which may suggest a vicious-circle relationship between past and future career precariousness.
Practical/implications
The findings support the view prevailing in policy circles that fostering agency-side factors such as self-directedness is instrumental toward achieving higher employment security. At the same time, individual agency cannot replace traditional policy measures in tackling structural labor market inequalities.
Originality/value
This study uses robust methodology and a representative respondent sample to statistically disentangle the effects of agency and context on employability. Its key contribution pertains to the explicit comparison of different worker groups, with separate contrasts on each model parameter.
Details
Keywords
Emmanuel Affum-Osei, Henry Kofi Mensah, Eric Adom Asante and Solomon Kwarteng Forkuoh
The purpose of this study is to examine the (1) psychometric properties of Crossley and Highhouse's job search strategy scale and (2) the predictive utility of the scale on fit…
Abstract
Purpose
The purpose of this study is to examine the (1) psychometric properties of Crossley and Highhouse's job search strategy scale and (2) the predictive utility of the scale on fit perceptions.
Design/methodology/approach
Data were collected from unemployed job seekers in Ghana (nT1 = 720; nT2 = 418). Exploratory and confirmatory factor analyses were conducted to examine the data.
Findings
Exploratory factor analysis on the first random sub-sample (n = 362) supported a three-factor model. Confirmatory factor analysis on the second random sub-sample (n = 358) confirmed the three-factor structure and was invariant across job search contexts and genders. Moreover, structural path results showed that the use of focussed and exploratory job search strategies facilitated positive fit perceptions and the use of haphazard job search resulted in poor job fit perceptions.
Originality/value
This study is the first to examine the dimensionality of job search strategies based on different job search context by linking it to fit perceptions. Moreover, the authors provide evidence that the job search strategy scale has a valid psychometric property and a promising instrument to assess job search behaviour across job search contexts and genders in an understudied population.
Details
Keywords
W. Eric Lee and Dennis Schmidt
This study investigates the determinants of students’ intention to major in accounting (IMA) in pre-recessionary, recessionary, and post-recessionary time periods. By examining…
Abstract
This study investigates the determinants of students’ intention to major in accounting (IMA) in pre-recessionary, recessionary, and post-recessionary time periods. By examining four factors (perceived professional ethics (PE), job market consideration (JMC), social influence (SI), and self-efficacy (SE)) in accordance with the theory of planned behavior (TPB), we address two primary research questions. The first question concerns whether the four factors are related to students’ IMA before, during, and after the recession. The second deals with whether there is a shift in the relative importance of the factors between the pre-recessionary, recessionary, and post-recessionary periods. We use structural equation modeling and multigroup analysis of structural invariance to analyze these issues. The results show that all four factors have significant structural weights in each period, with the exception of perceived PE in the pre-recessionary period. In terms of students’ IMA over the three periods, perceived PE, JMC, and SI become factors of greater importance during the recessionary and post-recessionary periods, while SE decreases in relative importance.
Details
Keywords
This study highlights the business failure experienced in pandemic times, its impact on entrepreneurs' perception of failure and the reciprocal relationship between entrepreneurs'…
Abstract
Purpose
This study highlights the business failure experienced in pandemic times, its impact on entrepreneurs' perception of failure and the reciprocal relationship between entrepreneurs' perception of failure and individual ambidexterity.
Design/methodology/approach
The study provides empirical evidence on interpreting the long-term outcomes of business failure in pandemic times and develops a deeper insight by utilizing a two-year research design (time 1: 2020 and time 2: first half of 2021). It draws on data from 200 entrepreneurs who experienced business failure in the coronavirus disease 2019 (COVID-19) pandemic times which is a global crisis.
Findings
The results revealed that both challenge and hindrance appraisals of failure are associated with individual ambidexterity over time. Self-efficacy and social valuation of re-entry decisions are mediators between hindrance appraisal and individual ambidexterity on both time 1 and time 2. Moreover, there is a positive reciprocal relationship between self-efficacy and ambidexterity throughout the two time periods. In regard to participants' current employment status, hindrance appraisal, self-efficacy and perceptions of ambidexterity linkages were found to be significantly different in terms of unemployment and employment.
Originality/value
To the best of the author's knowledge, it is the first time that the individual ambidexterity of failed entrepreneurs was explored after hard times in the pandemic. It comprehensively helps to understand the importance of cognitive appraisal of hard times and identifies the perceptional and behavioral consequences of failure in entrepreneurship.
Details