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– The purpose of this paper is to examine the effects of collectively agreed increases in minimum wages for manual workers on employment transitions and hours.
Abstract
Purpose
The purpose of this paper is to examine the effects of collectively agreed increases in minimum wages for manual workers on employment transitions and hours.
Design/methodology/approach
The econometric approach relies on the identification of workers affected by minimum wage changes, depending on their position in the wage distribution and contrasts outcomes for these workers to those for unaffected workers, with slightly higher wages.
Findings
The analysis suggests that separations increase as minimum wages increase and that substitution between worker groups in response to changes in minimum wages is important in retail. In general, though, hours do not change much as minimum wages increase.
Research limitations/implications
Analyses that deal with employment consequences of increasing minimum wages but disregard hours may exaggerate the overall decline in employment to the extent that job losses are concentrated among low-paid, part-time workers.
Practical implications
With union-bargained minimum wages, unions and employers need to carefully consider the effects of increasing rates on employment.
Social implications
The findings that there is a trade-off between higher wages among the low-paid and employment loss and that employment to some extent is reshuffled between individuals should be important from a welfare perspective.
Originality/value
The literature on employment effects of minimum wages is large, but very few studies are concerned with union-bargained minimum wages. The assumptions of the econometric model are tested in a novel way by imposing fictitious minimum wages on lower-level non-manuals in the same industry, with turnover characteristics similar to those of manuals but covered by a different collective agreement with non-binding actual minimum wages.
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Per Skedinger and Barbro Widerstedt
The purpose of this paper is to analyse recruitment to sheltered employment for the disabled, with particular attention to cream skimming, i.e. whether the most able candidates…
Abstract
Purpose
The purpose of this paper is to analyse recruitment to sheltered employment for the disabled, with particular attention to cream skimming, i.e. whether the most able candidates are picked by programme organisers.
Design/methodology/approach
In this paper recruitment practices and incentive structures at the state‐owned Samhall company, Sweden's main provider of sheltered employment, are discussed. An econometric analysis is performed on a random sample of 10,000 unemployed individuals, exploring the quality of the data on disability and the determinants of recruitment to the company. The findings regarding recruitment are related to Samhall's objectives.
Findings
The findings in this paper regarding cream skimming is mixed; the prioritised groups, i.e. individuals with intellectual or psychic disabilities, are more likely to be hired than some, but not all, disability groups. Individuals without disabilities tend to be recruited by the company, which suggests creaming and is contrary to the guidelines.
Research limitations/implications
The paper sees that the fact that disability tends to be difficult to define should be taken into account when recruitment practices to employment programmes for the disabled are analysed.
Practical implications
The paper found that objectives and screening procedures in employment programmes for the disabled should be assessed carefully in order to avoid excessive cream skimming.
Originality/value
The paper shows that most studies on cream skimming do not consider programmes for the disabled, although the potential for harmful cream skimming may be larger than in mainstream programmes. Unlike previous studies the role of disability characteristics for recruitment is explicitly taken into account and these are related to programme objectives.
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Moritz Zoellner, Michael Fritsch and Michael Wyrwich
The purpose of this paper is to review the results of studies that investigate the most important active labour market policy (ALMP) measures in Germany. A focus is also on…
Abstract
Purpose
The purpose of this paper is to review the results of studies that investigate the most important active labour market policy (ALMP) measures in Germany. A focus is also on programmes devoted to foster entrepreneurship which can make important contributions to a country’s growth and social welfare.
Design/methodology/approach
The study relies on quantitative and qualitative assessments and a comparison of results of previous studies on ALMPs.
Findings
The available evidence suggests that most ALMP measures increase labour market prospects of the participants. In particular, evaluations of the entrepreneurship promotion activities show high success rates as well as high cost efficiency. The bulk share of participants of entrepreneurship measures is still self-employed after several years and nearly one-third of these businesses had at least one employee. The authors mention problems regarding the evaluation of previous programmes and highlight future challenges of German ALMP.
Originality/value
This is the first study on ALMP that has an extensive and explicit focus on entrepreneurship-promoting programs.
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The article assembles efficiency and equity arguments for and against targeting the long‐term unemployed in active labour market policies (ALMP), and refers to evidence from…
Abstract
The article assembles efficiency and equity arguments for and against targeting the long‐term unemployed in active labour market policies (ALMP), and refers to evidence from applications to date. The theory and practices of ALMP differ somewhat between low and high unemployment countries. The approach taken in Sweden in the 1960s to 1980s is used to discuss low unemployment countries, and OECD analysis in the 1990s to represent theory for the high unemployment countries. Targeting the long‐term unemployed is specifically a policy for high unemployment countries, and depends particularly on effects on wage pressure. The article concludes by urging that equity arguments be considered as well as efficiency and by drawing attention to the form which targeting takes. Comments are made about Britain’s New Deal in relation to the form of targeting.
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Stefan Fölster, Li Jansson and Anton Nyrenström Gidehag
The purpose of this paper is to analyse empirically whether policies to improve the local business climate affect employment in general, and among groups of immigrants that suffer…
Abstract
Purpose
The purpose of this paper is to analyse empirically whether policies to improve the local business climate affect employment in general, and among groups of immigrants that suffer from structural unemployment.
Design/methodology/approach
The paper analyses the relation between Swedish entrepreneurs’ perception of the local business climate and total employment as well as employment among immigrants born outside of Europe, a group that tends to be particularly affected by structural unemployment. Instrumental variable and Arellano-Bond GMM estimation indicate that a better local business climate improves immigrants employment considerably more than total employment.
Findings
The results suggest that improvements in institutions and policies that entrepreneurs perceive as shaping the business climate may have an important effect on employment, in particular employment of groups that tend to have high rates of structural unemployment. Given the limitations, the estimates appear robust over a variety of specifications.
Research limitations/implications
The authors use a subjective measure of local business climate policies, but instrument this with an exogenous variable and lagged variables. The unit of observation are Swedish municipalities, which in contrast to other countries control many factors important for business.
Practical implications
Employment policies often focus on labour market institutions. The results suggest that other policies and their local implementation may be equally important for employment. Unfortunately the study does not reveal much detail of which specific measures give the greatest effects. That remains to be done in future research.
Social implications
The positive employment effects the authors find are particularly large for immigrants born outside of Europe. If the results are correct, then better local business climate could make an important contribution to social cohesion.
Originality/value
While there are more studies that analyse the relation between entrepreneurship and employment, much fewer previous studies have tried to establish a link between business climate policies and employment. The authors do this with a novel approach.
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Lefteris Kretsos and Ilias Livanos
The purpose of this paper is to investigate the extent and determinants of the so-called precarious employment across Europe and using different measures and based on individual’s…
Abstract
Purpose
The purpose of this paper is to investigate the extent and determinants of the so-called precarious employment across Europe and using different measures and based on individual’s self-assessment.
Design/methodology/approach
Data on over two million workers across Europe (EU-15) from the European Union Labour Force Survey are utilised and a Heckman selection approach is adopted.
Findings
About one tenth of the total European workforce is in employment relationships that could be related to precariousness. The sources of precariousness are mainly involuntary part-time and temporary work. Less prominent as a source of precariousness is job insecurity related to fear of job loss. Vulnerable groups are found to have a higher risk of precariousness while significant country variations indicate that precariousness cannot be examined in isolation of the national context. Finally, signals of previous employment inability, such as lack of past working experience, as well as the state of labour market significantly increase the risk of precarious work.
Originality/value
The present study utilises a large-scale survey in order to investigate the incidence of precarious employment in a harmonised way and produce results that are comparable across EU-15 countries.
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Dieu Hack-Polay and Paul Agu Igwe
Integration is a complex, contested and multidimensional concept. This paper aims to examine the impact of small voluntary agencies (SVA) in the integration of refugees into…
Abstract
Purpose
Integration is a complex, contested and multidimensional concept. This paper aims to examine the impact of small voluntary agencies (SVA) in the integration of refugees into social, economic and citizenship structures in the UK.
Design/methodology/approach
This study is rooted in in-depth interviews with 20 participants and a case study (ethnography research) that focuses on a refugee-assisting organisation in Southeast England.
Findings
The findings reveal cases of exemplary leadership in actions and social solidarity exhibited by SVA through innovative actions aimed at helping individuals and communities which may be particularly disadvantaged. It revealed the mixed embeddedness that these agencies create that enable refugees to pursue a new life, employment and citizenship.
Research limitations/implications
One of the limitations of the study is the focus on one case study. However, this provided an opportunity to conduct in-depth interviews and examination of the research objectives.
Practical implications
With the ever-decreasing government revenues, there is evidence of the tremendous achievement of the voluntary sector in many endeavours in the community. This provides an opportunity for a more strategic partnership between public and private actors.
Social implications
The activities of the SVA are the catalyst to refugees’ integration as policies that enable regaining self-esteem, seeking employment or starting a business.
Originality/value
This study provides the opportunity to explore the relatively under-research and under-publicized role of SVA in the migrants and refugee literature.
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Koech Cheruiyot and Thabelo Ramantswana
Acknowledging that housing forms a large part of households’ and country’s long-term wealth, the South African Government has implemented various housing-related policies towards…
Abstract
Purpose
Acknowledging that housing forms a large part of households’ and country’s long-term wealth, the South African Government has implemented various housing-related policies towards that end. Among these, the government has extended transfer duty exemption to house buyers – both individuals or natural persons and companies or other parties – to enable them buy houses of their choices since January 1950 to date. This paper aims to investigate the relationship between historical transfer duty exemption and housing demand in the City of Johannesburg (CoJ) over a longer period, where a comprehensive data set on house sales and other predictors was available.
Design/methodology/approach
This paper uses multi-year data on repeat house sales from 2010 to 2020 and other macro- and socio-economic variables to test the relationship between transfer duty exemption and housing demand in the CoJ, a core part of Gauteng province, South Africa. After cleaning the original data, final analysis was based on 139,121 repeat sales transactions. Data was analyzed in R.
Findings
Findings suggest that, when macro-, socio-economic and yearly effects are controlled, transfer duty has a damping effect on housing demand in the CoJ. The results were consistent across all the estimated models. While the motivation behind the implementation of transfer duty exemption in South Africa continues to encourage home ownership, these findings are unexpected because they do not offer support to that policy intention. These unexpected results are partly explained by the prevailing complexities of the housing market and related policies and the progressive tax regime. However, there are welfare effects that all buyers achieve across the housing market ecosystem.
Originality/value
This paper extends work on housing markets research in South Africa through the investigation of mortgage-based housing market in the CoJ that presents one of the densest, developed, bustling and growing housing market in the country. It also presents a fertile ground where all the effects of all the housing policies coalesce – in the statistical sense, one can control the effect of some aspects of housing policies, while appropriately testing the link between a specific policy (in this case, transfer duty exemption) and housing dynamics.
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Gülin Öylü, Chiara Natalie Focacci, Luis Serratos-Sotelo, Andreas Motel-Klingebiel and Susanne Kelfve
In this paper, the authors attempt to understand how labour market attachment during the ages of 30–59 influences individuals' transition out of the labour market.
Abstract
Purpose
In this paper, the authors attempt to understand how labour market attachment during the ages of 30–59 influences individuals' transition out of the labour market.
Design/methodology/approach
Using high-quality Swedish register data, the authors follow individuals born in 1950 and observe their labour market attachment during mid-life and their exit from the labour market.
Findings
The authors find evidence that labour market attachment in different stages of the career is differently related to exit from the labour market. At the age of 30, as well as between the ages 50–59, low attachment is related with earlier exit from the labour market. On the contrary, low labour market attachment during the ages 40–49 is related with later exit from the labour market. However, regardless of age, lower labour market attachment increases the risk of work-related benefit receipt in the exit year. The authors also find evidence that gender, migration status and childhood socioeconomic disadvantages may represent obstacles to longer working lives, while high education is a consistent factor in avoiding early exit from the labour market.
Originality/value
This study provides insights on the link between labour market attachment in different stages of the career and the exit from the labour market as well as work-related benefits dependency in the year of exit.
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Mattia Filomena and Matteo Picchio
This study aims to investigate the heterogeneous results about the impact of temporary jobs on subsequent labour market performances and to provide policymakers with further…
Abstract
Purpose
This study aims to investigate the heterogeneous results about the impact of temporary jobs on subsequent labour market performances and to provide policymakers with further information on the effects of temporary contracts under particular circumstances.
Design/methodology/approach
The authors present a quantitative systematic review on the debate about the “stepping stone vs dead end” hypothesis related to the causal effect of temporary jobs on future labour market performances.
Findings
Among 78 observations from 64 articles, 32% support the hypothesis according to which temporary contracts are a port of entry into stable employment positions, 23% report ambiguous or mixed findings and the remaining 45% provide evidence in favour of the dead end hypothesis. The results from meta-regressions suggest that the stepping stone effect is more likely to emerge when self-selectivity issues are dealt with. The studies focussing on temporary work agency jobs and casual/seasonal jobs support more easily the dead end hypothesis. Finally, in more recent years and when the unemployment rate is larger, the dead end hypothesis is more likely to prevail.
Originality/value
Although many studies have been published on this issue, to the best of the authors’ knowledge, there are no recent analytic economic surveys on the “stepping stone vs dead end” debate. The main contribution of this article is to fill this gap.
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