Search

Begin New Search Topic Labor Market Publication Year within 5 Years

101. Endogenous Growth, Skill Obsolescence and Fiscal Multipliers

Author:
Wolfgang Lechthaler and Mewael F. Tesfaselassie
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
We analyze the effects of government spending in a New-Keynesian model with search and matching frictions featuring endogenous growth through learning-by-doing and skill loss from longterm unemployment. We show that medium-run and long-run output and unemployment multipliers are much larger compared to the standard model that abstracts from endogenous growth and skill loss. In our model the aggregate effect of a temporary fiscal stimulus is amplified via the skill loss channel through lower training costs. Via the learning-by-doing channel, it leads to hysteresis in human capital accumulation and thereby output. These results hold for alternative forms of fiscal financing (lump-sumtax, distortionary tax and government debt) as well as alternative labor market institutions (US and Europe).
Topic:
Governance, Economic Growth, Economic Theory, and Labor Market
Political Geography:
North America and United States of America

102. On the Non-Inflationary effects of Long-Term Unemployment Reductions

Author:
Walter Paternesi Meloni, Davide Romaniello, and Antonella Stirati
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The paper critically examines the New Keynesian explanation of hysteresis based on the role of long-term unemployment. We first examine its analytical foundations, according to which rehiring long-term unemployed individuals would not be possible without accelerating inflation. Then we empirically assess its validity along two lines of inquiry. First, we investigate the reversibility of long-term unemployment. Then we focus on episodes of sustained long-term unemployment reductions to check for inflationary effects. Specifically, in a panel of 25 OECD countries (from 1983 to 2016), we verify by means of local projections whether they are associated with inflationary pressures in a subsequent five-year window. Two main results emerge: i) the evolution of the long-term unemployment rate is almost completely synchronous with the dynamics of the total unemployment rate, both during downswings and upswings; ii) we do not find indications of accelerating or persistently higher inflation during and after episodes of strong declines in the longterm unemployment rate, even when they occur in country-years in which the actual unemployment rate was estimated to be below a conventionally estimated Non-Accelerating Inflation Rate of Unemployment (NAIRU). Our results call into question the role of long-term unemployment in causing hysteresis and provide support to policy implications that are at variance with the conventional wisdom that regards the NAIRU as an inflationary barrier.
Topic:
Inflation, Macroeconomics, Unemployment, and Labor Market
Political Geography:
Global Focus

103. Nudging for Recovery: Behavioral Economics and the implementation of the National Recovery and Resilience Plan

Author:
Demosthenes Kollias
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
With the National Recovery and Resilience Plan, Greece is presented with yet another opportunity to catch up with global trends. At the same time, behavioral economics are being established worldwide as a valuable asset in the policy maker’s toolkit. The paper -mainly focusing on taxation, labor market policy, and climate change- aims to examine the behavioral conundrum that creates frictions and inefficiency in the domains outlined above and to offer concrete and quantifiable policy proposals, in accordance with the goals of Greece 2.0. Regarding tax evasion, for example, one can estimate at least €1 billion in additional tax revenue if the proposals are implemented.
Topic:
Climate Change, Economics, Tax Systems, Labor Market, and Economic Recovery
Political Geography:
Europe and Greece

104. Skills mismatch in the Greek labour market: insights from a youth survey

Author:
Dimitris Katsikas
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy paper presents some first findings from a youth survey relating to the skills mismatch in Greece. The survey was conducted in the context of the EEA Grants sponsored research project “Youth employment and gender equality: Mobilizing human capital for sustainable growth in Greece”, which is implemented by ELIAMEP and the Norwegian institute Fafo. The project seeks to document and analyze conditions in the Greek labour market, with an emphasis on the main barriers constraining young people’s access to it and on their progress once they get a job. Pending a more in-depth analysis of the findings, the preliminary evidence presented here adds some insights to the study of the skills mismatch phenomenon in Greece and helps us outline a few policy proposals. Skills mismatch is a significant problem for modern economies, as it leads to the inefficient utilization of the labour force, reducing productivity and growth potential. Research shows that Greece faces a serious skills mismatch problem. The findings of a youth survey presented here: Confirm the problem for the Greek labour market in both its vertical (over/ underqualification) and horizontal (field of study) dimensions. Show that skills mismatch affects graduates within every level and orientation (e.g., vocational training) of the educational system. Document young people’s belief that the educational system does not prepare them well for the labour market Show that skills mismatch is a serious obstacle to labour market entry for young people Confirm the lack of learning opportunities for those in employment, as well as the importance which young people attach to such opportunities for their professional progress. Reveal that young people often reject jobs due to low pay and unsatisfactory employment conditions, implying that reported skills shortages are also due to the terms of employment on offer. Policy responses should be multi-faceted, targeting both the educational system and the economy. Providing students with information about market developments and trends, and taking such information into account in the design of educational curricula (particularly in vocational training) is essential if the skills mismatch problem is to be addressed.
Topic:
Youth, Survey, Labor Market, and Skills
Political Geography:
Europe and Greece

105. Protecting employment in 2021 and beyond: what can the new SURE instrument do?

Author:
Christina Kattami
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Protecting employment was not just a 2020 issue – while 2021 will be racing for vaccinations, and the immediate and complete relaxation of the containment measures will remain unlikely, the need to protect incomes and jobs will be as relevant as ever. As such, this policy brief analyses the rationale for, and the integration qualities of, the SURE instrument, which is being implemented following a European Commission proposal in April 2020 and a Council decision on 19 May 2020. By establishing the importance of short-time work schemes in protecting employment during the crucial first months of the pandemic, the brief explains the solidarity function of the SURE instrument, which ensures that all Member States have the resources available to make use of similar schemes to protect jobs, workers and incomes. Additionally, the decision to fund the SURE instrument with social bonds, which have been met with consistently overwhelming investor demand, forms an initial treasury form of what can be regarded as a European safe asset; something which will be strengthened in size and scope by the incoming European bonds funding the Recovery Instrument, Next Generation EU. Moving beyond 2021 and looking into a future model of employment protection in the future of the European labour market, the brief outlines the legal and political feasibility of transforming SURE into a permanent employment scheme, and, as such, an instrument of integration and socioeconomic resilience in the European Union.
Topic:
European Union, Employment, COVID-19, and Labor Market
Political Geography:
Europe

106. Ethical Recruitment of Health Workers: Using Bilateral Cooperation to Fulfill the World Health Organization’s Global Code of Practice

Author:
Michael Clemens and Helen Dempster
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
In a bid to better manage the increasing migration of health workers, in 2010 the World Health Organization (WHO) adopted its Global Code of Practice on the International Recruitment of Health Personnel. The Code has been misinterpreted by many as banning all recruitment from the 57 countries it deemed to have a “critical shortage” of health workers. But that is neither what the WHO intended, nor what the Code says. Recruitment from these countries was always allowed, even encouraged, as long as it was conducted under a mutually beneficial government-to-government agreement. In this policy paper, we outline how the WHO defined a “critical shortage” of health workers, both for the original Code and for its newly published Health Workforce Support and Safeguards List. The paper then goes onto explore how countries of migrant destination and origin can (and should) design ethical and sustainable health worker migration partnerships that fulfil the requirements of the Code.
Topic:
International Cooperation, Health Care Policy, Ethics, and Labor Market
Political Geography:
Global Focus

107. Family Caregivers in the Post-COVID Labor Market in China

Author:
Haijing Dai and Qin Gao
Publication Date:
12-2021
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
The COVID pandemic has brought family caregivers in China new challenges to balance work and family needs. While sudden quarantine requirements and unexpected suspensions of schools and care institutions demand more flexibility from work, the economic slowdown reduces job opportunities and increases competition in the employment market. Based on a recent respondent-driven survey and 11 in-depth interviews of company directors and HR managers in Guangdong Province, the study explores how representatives of employers, some of whom are family caregivers, view and understand the dilemmas of family caregivers under such circumstances, and how they treat family caregivers in job recruitment, performance evaluation, and promotion decisions. Preliminary data analysis uncovers unfriendly attitudes of employers towards family caregivers, especially mothers of young children and men taking care of aging parents, as well as prevalent discourses of gender norms, individual choice, and personal responsibility. Implications of the findings for social inequality in China and policymaking will also be discussed. This event is part of the 2021-2022 lecture series on “COVID-19 Impacts and Responses in China and Beyond” and is co-sponsored by the Weatherhead East Asian Institute and the China Center for Social Policy.
Topic:
Family, Domestic Policy, COVID-19, Labor Market, and Caregivers
Political Geography:
China and Asia

108. An Emerging Opportunity for Recovery: “Modern Markets for All”

Author:
Wingham Rowan
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The growth and modernization of online labour markets have often come at the expense of workers. The platforms that cater to the gig economy aim to maximize profits while undermining worker benefits. For example, some labour platforms have been known to extract up to 30 percent of their workers’ earnings. In this policy brief, Wingham Rowan discusses how to make labour markets more equitable through a collaborative effort between government agencies and tech companies to maximize growth, opportunity and inclusion, creating “modern markets for all.”
Topic:
Science and Technology, Income Inequality, Labor Market, and Public-Private Partnership
Political Geography:
North America and United States of America

109. Taking the Long View: Options for Inclusive Post-Pandemic Labor Markets

Author:
Liam Patuzzi
Publication Date:
08-2021
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
The COVID-19 pandemic has ushered in harsh effects across European economies, and uncertainty persists even as vaccination campaigns have picked up speed. EU governments’ prompt investments in historically large job retention measures have temporarily cushioned the pandemic’s blow to labor markets, but this also means that the full impact is yet to be felt. What is clear, however, is that the crisis has exacerbated the labor market challenges some immigrant groups, such as recently arrived refugees and migrant women, were facing even before the pandemic began. Among the contributing factors are immigrants’ overrepresentation in hard-hit sectors, precarious work arrangements (such as part-time contracts and gig work), difficulties accessing social benefits, and some countries’ temporary suspension of integration supports. This MPI Europe report explores how the pandemic has affected immigrant workers thus far and how labor market trends such as automation, remote work, and the growth of the platform economy may affect migrant integration as European economies begin to recover. It also presents policy ideas and recommendations for crafting inclusive pandemic recovery strategies.
Topic:
Education, Employment, Refugees, Economy, Immigrants, COVID-19, and Labor Market
Political Geography:
Europe

110. Market power and artificial intelligence work on online labour markets

Author:
Néstor Duch-Brown, Estrella Gomez-Herrera, Frank Mueller-Langer, and Songül Tolan
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The views are those of the authors and should not be regarded as stating an official position of the European Commission. Frank Mueller-Langer gratefully acknowledges financial support from a research grant of the University of the Bundeswehr Munich. We investigate three alternative but complementary indicators of market power on one of the largest online labour markets (OLMs) in Europe: (1) the elasticity of labour demand, (2) the elasticity of labour supply, and (3) the concentration of market shares. We explore how these indicators relate to an exogenous change in platform policy. In the middle of the observation period, the platform made it mandatory for employers to signal the rates they were willing to pay, as given by the level of experience required to perform a project: entry, intermediate or expert level. We find a positive labour supply elasticity ranging between 0.06 and 0.15, which is higher for expert-level projects. We also find that the labour demand elasticity increased while the labour supply elasticity decreased after the policy change. Based on this, we argue that market-designing platform providers can influence the labour demand and supply elasticities on OLMs with the terms and conditions they set for the platform. We also explore the demand for and supply of AI-related labour on the OLM under study. We provide evidence of a significantly higher demand for AI-related labour (ranging from +1.4 percent to +4.1 percent) and a significantly lower supply of AI-related labour (ranging from -6.8 percent to -1.6 percent) than for other types of labour. We also find that workers on AI projects receive 3.0 percent to 3.2 percent higher wages than workers on non-AI projects.
Topic:
Markets, Science and Technology, Internet, Artificial Intelligence, and Labor Market
Political Geography:
Global Focus