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1. 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

2. On Within-couple Time Allocation: Gendered Disparities in Paid Work and Housework in Europe

Author:
Alireza Sabouniha and Maryna Tverdostup
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper aims to pursue a deeper understanding of gendered within-couple allocation of time into paid work and housework in heterosexual dual-earner couples. Relying on the second wave of Harmonised European Time Use Survey (HETUS) data for 10 European countries, we estimate spousal relative worktime and housework to analyse within-couple time-use arrangements. The results show that the disparity between a wife’s and a husband’s workhours is gradually narrowing, yet housework remains firmly gendered even in couples in which the wife works more hours than the husband. We document strong inertia in the wife’s share of housework. Although it decreases as her labour market commitment increases, the decline is slow. In addition, even if it is approaching a gender-equal split, the within-couple division of housework barely passes the point at which the husband’s contribution to housework surpasses that of his wife. These results suggest that gendered time division aligns broadly with traditional theories of the household, yet the role of the ‘doing-gender’ hypothesis is non-negligible.
Topic:
Migration, Labor Issues, European Union, Income Inequality, Labor Market, Decision-Making, Gender, Income Distribution, and Unpaid Work
Political Geography:
United Kingdom and Europe

3. The Labour Market Entry and Integration of Refugees and Other Migrants in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the labour market entry of refugees and other (non-humanitarian) migrants originating from middle- and low-income non-European countries that arrived in Austria in 2014-2016. Specifically, we analyse factors that shaped the transition to and out of the first job in the Austrian labour market, document the characteristics of the first job and explore job stability in Austria. Even though refugees took longer to find a job, individual and household characteristics, as well as labour market indicators, are associated with the time between arrival and the first job in Austria, similar to other migrants. Refugees and other migrants also found similar job types as their entry jobs, which tended to be located in low-wage segments. The results, however, suggest that other migrants held their first job, on average, for a longer time than refugees. Although other migrants quit their first job relatively quickly when it was marginal employment, refugees tended to hold marginal jobs as long as full-time and part-time jobs. Finally, our results suggest that entry jobs with a higher quality in terms of working hours and wages (i.e. full-time jobs) tended to be linked with job stability, while entry jobs with a lower quality (i.e. marginal jobs) tended to be associated with job instability for both refugees and other migrants. The results of the paper showcase the importance of immediate access to various training and re-education programs for refugees to improve the quality of their entry jobs and their long-term prospects in the Austrian labour market.
Topic:
Migration, Refugees, Labor Market, Economic Integration, and Jobs
Political Geography:
Europe and Austria

4. Demography, Capital Accumulation and Growth

Author:
Robert Stehrer and Maryna Tverdostup
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Europe will be challenged by demographic changes over the next few decades, even under favourable assumptions about fertility and migration, but the economic effects are not yet fully understood. This paper studies the effects of population ageing on economic growth, capital deepening and robotisation in 27 European Union (EU) labour markets. First, we econometrically assess the effects of ageing and potential labour market shortages on growth. Second, we test the hypothesis of whether ageing leads to faster adoption of new technologies. We distinguish between various capital asset types, including non-ICT and ICT capital, tangible and intangible capital and the adoption of robots. The analysis is based on Eurostat, the European Labour Force Survey (EU-LFS) and International Federation of Robotics (IFR) data. Results indicate that ageing and demographic changes might contribute to secular stagnation, which decelerates the adoption of new technologies.
Topic:
Science and Technology, European Union, Economic Growth, Macroeconomics, Aging, Labor Market, and Capital Accumulation
Political Geography:
Europe

5. Gender Gaps in Employment, Wages, and Work Hours: Assessment of COVID-19 Implications

Author:
Maryna Tverdostup
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The COVID-19 pandemic has highly asymmetric effects on labour market outcomes of men and women. In this paper, we empirically investigate the dynamics and drivers of gender gaps in employment rates, wages and workhours during the pandemic. Relying on Estonian Labour Force Survey data, we document that the pandemic has, if anything, reduced gender inequality in all three domains. Our results suggest that, while the evolution of inequalities mirrored the infection rate development – rising as infections mounted and declining as the first wave flattened – overall, the pandemic did not exacerbate gender gaps in 2020. The cyclical increases in gender disparities were largely driven by parenthood, as child-rearing women experienced a major decline in their employment rate and workhours, as well as gender segregation in the most affected industries. The higher propensity to work from home and better educational attainments of women deterred gender wage gap expansion, as wage returns to telework and education rose during the pandemic. Our results suggest no systematic expansion of gender gaps, but rather short-term fluctuations. However, labour market penalties for women with young children and women employed in those industries most affected by COVID-19 may last longer than the pandemic, threatening to widen gender inequality in the long run.
Topic:
Gender Issues, Labor Issues, Employment, Pandemic, and COVID-19
Political Geography:
Global Focus

6. The Gap that Survived the Transition: The Gender Wage Gap over Three Decades in Estonia

Author:
Jaanika Meriküll and Maryna Tverdostup
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper looks at the gender wage gap throughout the transition from communism to capitalism and throughout a time of rapid economic convergence. The case of Estonia is used, and micro data from the Labour Force Survey from 1989 to 2020 are employed. The communist regimes had highly regulated wage setting and high levels of educational attainment and labour market participation for women. Although the regime was formally egalitarian, the gender attitudes were conservative and the raw gender wage gap was as large as 41% at the end of the communist period in Estonia. The large gender wage gap under communist rule narrowed quickly during the first years of economic transition, but the further decline in the gap has been slow. The paper has two main messages. The first is that there is strong inertia in the gender wage gap persisting through the communist period and economic convergence. None of the known long-run cultural drivers of gender attitudes can explain this. The second is that the decline in the gap is related to the overall decline in wage inequality, the rise in minimum wages, and more egalitarian gender attitudes. The gender attitudes are responsible for a smaller effect than wage inequality is.
Topic:
Economy, Minimum Wage, Post-Soviet Space, Wage Income, Attitudes, and Gender Wage Gap
Political Geography:
Eastern Europe and Estonia