The purpose of this paper is to examine the dynamics of labour market flows over the business cycle through a vacancy chain model. It provides a direct computation of…
The purpose of this paper is to examine the dynamics of labour market flows over the business cycle through a vacancy chain model. It provides a direct computation of vacancy chains using micro data, empirically investigates the relationship between chain length and the characteristics of jobs and workers initiating the chain, and finally assesses the wage progression of workers moving along the chain.
The paper draws on a longitudinal matched employer-employee database covering all employees in manufacturing in a large region of Italy. A transparent algorithm for vacancy chain computation is developed and standard econometric techniques are employed to analyze job-to-job transitions within identified chains.
Vacancy chains account on average for more than one-third of total hires, and both the number and the length of chains are clearly pro-cyclical. Chains set in motion by women workers, young, old, blue collars, or employed by small firms tend to be shorter. There is a well-defined wage progression from the tail to the head of the chain, revealing that workers are sorted along chains according to skill and/or bargaining power.
There is a limited possibility of identifying separately individual ability and bargaining power.
The vacancy chain methodology can increase the ability of policy makers to produce detailed maps of the labour market and identify worker profiles associated with poor outcomes and hence deserving special attention.
For the first time, this paper operationalizes the vacancy chain approach on a large scale, at a very high level of detail, and over a long-time span.
Job and worker flows in the Finnish business sector are studied during a deep recession in the early 1990s. The data set covers effectively the whole work force. The gross…
Job and worker flows in the Finnish business sector are studied during a deep recession in the early 1990s. The data set covers effectively the whole work force. The gross job and worker flow rates are fairly high. The evidence suggests that the adjustment of labor input has happened through a reduced hiring rate rather than through an increased separation rate. However, during the recession the group of declining plants included more and larger plants than before, which led to reduced employment. Excess worker turnover (churning) and excess job reallocation have been low during the recession. The evidence of the countercyclicality of job reallocation is mixed. The flows are calculated both for the whole business sector, and for seven main industries. Services have clearly higher flow rates than manufacturing, but the cyclical changes in the flows are fairly similar in all industries. To test the sensitivity of the results to data sources, job flows are calculated from three different statistics.
Mobility processes, the routines that organizations use to move employees into and across jobs, are a critical determinant of the way that human capital is allocated…
Mobility processes, the routines that organizations use to move employees into and across jobs, are a critical determinant of the way that human capital is allocated within organizations and careers developed. Most existing work on these mobility processes has examined processes in which mobility is tightly coupled to the filling of vacancies. There is substantial evidence, though, that many organizations adopt very different processes for managing mobility. In this theory chapter, I compare vacancy-based, “job-pull” systems with alternative, “person-push” systems in which mobility is keyed to employees' attainment of performance and skill thresholds to explain how and why mobility processes vary. I identify two, inter-related dimensions along which mobility processes vary: whether their decision processes emphasize the need to match employees to tasks versus providing predictable rewards; and whether the system of jobs that people move between prioritizes flexibility or control of agency costs. I use these dimensions to predict when organizations will adopt different mobility processes, and how those processes will affect employees' mobility.
The purpose of this paper is to overcome the problems that skill mismatch cannot be measured directly and that demand side data are lacking. It relates demand and supply…
The purpose of this paper is to overcome the problems that skill mismatch cannot be measured directly and that demand side data are lacking. It relates demand and supply side characteristics by aggregating data from jobs ads and jobholders into occupations. For these occupations skill mismatch is investigated by focussing on demand and supply ratios, attained vis-à-vis required skills and vacancies’ skill requirements in relation to the demand-supply ratios.
Vacancy data from the EURES job portal and jobholder data from WageIndicator web-survey were aggregated by ISCO 4-digit occupations and merged in a database with 279 occupations for Czech Republic, being the only European country with disaggregated occupational data, coded educational data, and sufficient numbers of observations.
One fourth of occupations are in excessive demand and one third in excessive supply. The workforce is overeducated compared to the vacancies’ requirements. A high demand correlates with lower educational requirements. At lower occupational skill levels requirements are more condensed, but attainments less so. At higher skill levels, requirements are less condensed, but attainments more so. Educational requirements are lower for high demand occupations.
Using educational levels is a limited proxy for multidimensional skills. Higher educated jobholders are overrepresented.
In Europe labour market mismatches worry policy makers and Public Employment Services alike.
The authors study is the first for Europe to explore such a granulated approach of skill mismatch.
Addresses the question of whether a high turnover of staff is accompanied by lower investment in company‐training. By means of a written questionnaire, data were collected from 223 companies in four different sectors: the food sector, the wholesale trade, the printing industry and the software sector. Besides the turnover of staff, introduces the degree of contractual flexibility and the existence of an internal labour market as explanatory variables in the discussion. In contradiction to most labour economic thinking on training, finds a positive relationship between fluctuations in the number of employees and the investment in training. The findings indicate that company training is particularly concentrated on inflow and replacement problems. Therefore, concludes that financial support measures of governments might benefit more the recruitment policy of companies instead of the high ideal of “lifelong learning”.
Idiosyncratic jobs occur when formal job duties match the abilities or interests of a specific person. New duties can accrue or be negotiated to match an existing employee…
Idiosyncratic jobs occur when formal job duties match the abilities or interests of a specific person. New duties can accrue or be negotiated to match an existing employee or a potential hire. Idiosyncratic jobs can help organizations deal with changing contexts, and influence organizational goals and structure. They can affect job holders’ careers and organizational job structures. The evolutionary accumulation of idiosyncratic jobs can potentially generate unplanned organizational learning. Promising research frontiers include links to work on job crafting, I-Deals, negotiated joining, and ecologies of jobs. Deeper exploration of these domains can advance core theories of job design and organizational transformation and inform normative theory on organizational use of idiosyncratic jobs without falling into cronyism, inefficiency, or injustice.
In the last two decades the economic literature has devotedsignificant attention to the mechanisms behind firms′ recruitmentstrategies as a possible way of reducing…
In the last two decades the economic literature has devoted significant attention to the mechanisms behind firms′ recruitment strategies as a possible way of reducing (un)employment problems. At the workfloor many efforts have also been made by firms to develop strategies that both alleviate conflicts with employees and at the same time lead to acceptable levels of productivity. This effort has resulted in the broad acceptance of the personnel management function in the firm. Examines how successful this approach has been by focusing on the gap between practice and theory in recruitment, by investigating the extent to which and the way in which experiences and findings from actual recruitment (personnel management) have been incorporated in economic theory. Gives an overview of findings on recruitment and selection strategies of firms, with a particular emphasis on economic motives.