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11. Local Economic Development Through Export-Led Growth: The Chilean Case

Author:
Andrés César and Guillermo Falcone
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We study the causal impact of export growth on Chilean local economic development during 2000–2006 by exploiting spatial and temporal variations in local exposure stemming from the interaction of past differences in industry specialization across local labor markets and the evolution of tariffs cuts and exports across industries. We find that growing exports implied a significant reduction in labor informality and labor income gains in more exposed local markets, driven by job creation and wage growth in the formal sector. These effects concentrate on senior skilled workers. Exposed locations also exhibit a greater relative decline in the poverty rate.
Topic:
Poverty, Employment, Economic Growth, Tariffs, Exports, Economic Development, Labor Market, Wages, and Informality
Political Geography:
South America and Chile

12. How Far from Full Employment? The European Unemployment Problem Revisited

Author:
Meryem Gökten, Philipp Heimberger, and Andreas Lichtenberger
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses deviations from full employment in EU countries, compared with the US and the UK. We apply the Beveridge (full-employment-consistent) rate of unemployment (BECRU), derived from the unemployment-vacancies relationship. The BECRU is the level of unemployment that minimises the non-productive use of labour. Based on a novel dataset for the period 1970-2022, we find full employment episodes in selected EU countries (Germany, Sweden, Austria, Finland) during the 1970s. The European unemployment problem emerged in the 1980s and 1990s, as Beveridgean full employment gaps increased. In the run-up to the global financial crisis, full employment gaps declined, then increased during the Great Recession. Slack in labour markets increased initially during the pandemic. Labour markets became tighter when recovering from the COVID-19 crisis, but few countries hit full employment. Panel regressions highlight that hysteresis, labour market institutions, structural factors, macroeconomic factors and political factors contribute to explaining full employment gaps.
Topic:
Migration, European Union, Employment, Macroeconomics, Unemployment, Labor Market, OECD, and Income Distribution
Political Geography:
Europe

13. The Path Through: Early COVID-19 Job Loss and Labour Market Trajectories in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the socio-demographic disparities evident in the early labour market response to the COVID-19 pandemic in Austria, relying on the register-based labour market career dataset from the Austrian Micro Data Center (AMDC) for the 2018-2021 period. The analysis focuses on the divergences in out-of-unemployment transitions and medium-term employment stability among those who lost their jobs early in the pandemic in contrast to the group of the longer-term unemployed. We document that individuals affected by job loss during the initial phases of the pandemic did not exhibit enduring scarring effects. Unlike their longer-term unemployed counterparts, they did not demonstrate persistent labour market detachment, prolonged periods of unemployment or a diminished success rate in re-employment. However, certain socio-demographic cohorts – notably, women, parents with two or more young children, and individuals with lower levels of education – faced disproportionate challenges during the pandemic. They were more inclined to transition into precarious employment arrangements and experienced lower levels of employment stability in the months following re-employment.
Topic:
Employment, Inequality, Unemployment, COVID-19, Labor Market, and Gender
Political Geography:
Europe and Austria

14. Full Employment: A Survey of Theory, Empirics and Policies

Author:
Aleksandr Arsenev, Meryem Gökten, Philipp Heimberger, and Andreas Lichtenberger
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The concept of full employment is associated with diverse economic, political and social aspects. We provide a survey of theory, empirics and policy issues related to full employment. We make a novel contribution by tying together multi-dimensional aspects of full employment regarding definitions, theoretical perspectives, empirical measurements, policy debates and real-world policy programs. We distinguish: concepts of full employment that provide systematic links to price stability; minimum unemployment and maximum employment approaches; and the unfilled vacancies perspective. Furthermore, we provide and discuss different empirical measures of full employment for selected economies, and we propose a new full employment typology. Based on our survey findings, we argue that conceptualising and measuring full employment is not merely a technical task, but inevitably involves normative judgments. Finally, we discuss avenues for future research.
Topic:
Labor Issues, European Union, Employment, Macroeconomics, OECD, Welfare State, and Jobs
Political Geography:
Europe

15. Gender and Education Gaps in Employment: New Evidence for the EU

Author:
Aleksandr Arsenev, Meryem Gökten, Philipp Heimberger, Andreas Lichtenberger, and Torben Schütz
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses (age-adjusted) employment rates by gender and education. We find that male female gender gaps and high-low education gaps in employment vary markedly across European Union (EU) countries and regions, with larger gaps existing in Eastern and Southern Europe than in Nordic and Continental EU countries. We estimate that closing existing education gaps in employment between high and lower education levels would raise the employment rate in the EU for the year 2022 by 10.6 percentage points, whereas closing the gender gaps between men and women would lead to an increase of 2.5 percentage points. At the same time, closing both the gender and education gaps would raise the EU employment rate from 76% to 89% of the population. Furthermore, we provide new evidence on the cyclical behaviour of employment gaps, finding that gender gaps are procyclical. While female employment rates tend to be more resilient than male employment rates during economic downturns, male employment rates tend to grow at a faster pace than female employment rates during upswings. In contrast, education gaps are more countercyclical, as employment risks are more strongly concentrated where education is low.
Topic:
Education, Labor Issues, European Union, Employment, Inequality, Macroeconomics, Unemployment, Gender, and Income Distribution
Political Geography:
Europe

16. Regressive income shocks during COVID‑9: Evidence from India

Author:
Amit Basole, Anand Shrivastava, Jay Kulkarni, and Akshit Arora
Publication Date:
08-2024
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Studies based on the Consumer Pyramids Household Survey (CPHS) in India have shown that the impact of the Covid-19 lockdown on household incomes was progressive in nature - richer households suffered more. But several media reports as well as purposive surveys carried out during the pandemic suggest that the poor suffered more than the rich. We use nationally representative panel data for urban India from the official Periodic Labour Force Survey (PLFS) to show that households that were relatively richer prior to the start of the pandemic suffered relatively less during the lockdown compared to households that were poorer. That is, the shock was regressive in nature. We also confirm that, as per CPHS, richer households did indeed experience higher drops in income than poorer ones. But we show that this progressivity is much less than what prevailed prior to the pandemic. Thus the pandemic either disrupted ongoing progressive income changes or was outright regressive in its impacts.
Topic:
Employment, COVID-19, Lockdown Policies, and Income Distribution
Political Geography:
South Asia and India

17. Are Mass Layoffs Individually Costly But Socially Beneficial?

Author:
Axelle Arquie and Thomas Grjebine
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
Relying on rich administrative data, this paper examines the adaptive capabilities of the French labor market in the aftermath of large-scale layoffs in the manufacturing sector. We assess both individual and aggregate effects of these shocks, using a unique quantitative definition of mass layoffs. We first show that displaced workers suffer a long-lasting increase in the probability of being unemployed and, for those who find a job, a decrease in their salary. While mass layoffs entail costs for displaced workers, there is a possible social benefit if they result in productive reallocation of workers to the most innovative companies and in the creation of new firms. Remarkably, our findings indicate that firms that hire displaced workers exhibit lower investment rates, decreased value added, and a reduced workforce, with a higher proportion of employees on fixed-term contracts. Additionally, mass layoffs do not contribute to the enhancement of allocative efficiency, as the most skilled workers are less likely to be matched with the most successful establishments. Furthermore, we assess the extent to which local economies adapt to these shocks, revealing that, six years after the mass layoff event, the local unemployment rate is 12% higher in comparison to unaffected regions. Lastly, the affected areas experience a diminished share of new establishment creation.
Topic:
Employment, Economy, and Layoffs
Political Geography:
Global Focus

18. Regional Amenities, Services Offshoring, and Skilled Employment in the Republic of Korea

Author:
Ju Hyun Pyun
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study empirically examines the effect of services offshoring and regional amenities on the composition of skilled employment for services firms. Analysing Korean firm-level data spanning from 2006 to 2019, we find that services offshoring, characterised by the import of services intermediate inputs, correlates with an increase in the proportion of skilled workers within firms. Additionally, the effects of this shift are nuanced based on different skill levels: services offshoring leads to an increase in the share of permanent headquarters workers to total workers. However, it does not affect the share of high-end skilled workers, such as headquarters’ share of management and research and development (R&D) workers. Moreover, regional amenities promote the positive effect of services offshoring on permanent headquarters workers’ shares. Lastly, the positive effect of offshoring on demand for high-end skilled workers in headquarters is significantly greater for firms with higher R&D intensity.
Topic:
Employment, Human Capital, Services, Skilled Labor, Research and Development, and Offshoring
Political Geography:
Asia and South Korea

19. Aspects of Employment in Ottoman Waqfs Examples of Fatih, Yavuz Selim, and Süleymaniye Waqfs

Author:
Ayşenur Karademir
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
This study examines the role of Ottoman imperial waqfs as employment institutions, focusing on the salary register EV.HMH.1178, prepared for the Fatih, Yavuz Selim, and Süleymaniye waqfs in the early 18th century. By analyzing the administrative and financial oversight documented in this register, the article explores the redistributive functions of these waqfs and their contribution to sustaining long-term social and economic stability. Special attention is given to the intervention of the central office (Sadr-ı Âli Nezareti/Grand Vizier’s Office) through an imperial decree and the classification of employee roles by workplace. This research contributes to the literature on waqfs by providing insights into their employment systems and administrative practices.
Topic:
Economics, History, Employment, Ottoman Empire, and Waqf
Political Geography:
Turkey and Middle East

20. Training-Employment Transition and New Digital Professions: A Solution to Women’s Employability in Cameroon

Author:
Yollande Meli Tankeu, Emilie Bitongo, and Adeline Nembot
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The primary objective of all training programs is to facilitate integration into the job market. However, the transition from training to employment—encompassing young people who study and work simultaneously, as well as those who are unemployed, underemployed, or dissatisfied with self-employment (ILO, 2020) remains a significant challenge in Sub-Saharan Africa, particularly for women. In Cameroon, the female participation and opportunity rate stands at 70.4%, which is 29.6% lower than that of men (Global Gender Gap, 2022). Nearly eight out of ten female workers are engaged in vulnerable employment, with 93% in informal jobs, and only 11% of paid workers have contracts lasting more than 12 months (Elder and Kring, 2016), from the ILO School to Work Transition Survey). Although there have been some advancements in the Cameroonian job market in recent years, the situation for women remains concerning compared to that of men. Recent advances and innovations in the digital sector present opportunities for a successful transition from training to employment, particularly for women, due to the emergence of new professions. In Cameroon, the digital economy accounted for 3.5% of GDP in 2016 (Djon, 2020). Since then, the digital sector has introduced a variety of professions, including digital marketing, community management, web writing, and blogging, which could facilitate a positive training-employment transition for women in Cameroon. However, women currently represent only 20% of digital workers in the country (Business & Finance International, 2023). This article examines the challenges of the training-employment transition for women and the emergence of new digital jobs as a potential solution to enhance their employability in Cameroon. Our analysis is structured into two parts: the first provides an overview of the training-employment transition for women in Cameroon, while the second highlights new digital professions as opportunities for improving this transition.
Topic:
Women, Employment, and Digital Economy
Political Geography:
Africa and Cameroon