Ludo Cuyvers, Philippe De Lombaerde and Glenn Rayp
This paper aims to introduce the subject of the impact of globalization and regionalization on the labour markets. The papers of the special issue are placed within this subject.
Abstract
Purpose
This paper aims to introduce the subject of the impact of globalization and regionalization on the labour markets. The papers of the special issue are placed within this subject.
Design/methodology/approach
Although the subject is not treated exhaustively, the papers presented are new contributions dealing with labour market institutions, efficiency wages, employment effects of outward foreign direct investment, immigration patterns, and regional social and labour policies. These diverse issues are dealt with in their relation with increasing globalization in developed economies.
Findings
The major conclusions of the papers in the special issue are put into the perspective of the state of the art of the research on the social impact of globalization, particularly the labour market consequences.
Originality/value
A more comprehensive analysis of globalisation, which takes into account the complementarity of the different channels through which its effects on labour markets are transmitted, becomes more and more necessary. The papers of the special issue attempt to look into a number of these channels and to some extent into their complementarity.
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The purpose of the paper was to establish the implications of globalisation for labour markets when efficiency wages create endogenous wage rigidity and to re‐examine the…
Abstract
Purpose
The purpose of the paper was to establish the implications of globalisation for labour markets when efficiency wages create endogenous wage rigidity and to re‐examine the credibility of the arguments that call for deregulation, more wage flexibility and less social protection in this context.
Design/methodology/approach
The role of efficiency wages is reviewed in the traditional international economics theory, new economic geography and the neo‐Schumpeterian perspective towards international competitiveness.
Findings
First, taking into account endogenous sources of wage rigidity has different implications for employment, inequality, regional growth convergence and the role of the welfare state in the context of international competitiveness, from those derived when assuming them away or taking them as imposed by labour market institutions. Second, policies that would substantially reduce social security or lead to cost‐cuts may have an adverse effect on effort and thus on productivity.
Originality/value
To the author's knowledge, this paper is the only review in the literature that concentrates on efficiency wages applied in international trade.
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The paper aims at providing evidence on the impact on employment of outward foreign direct investment, particularly from developed countries into low‐wage countries, which is a…
Abstract
Purpose
The paper aims at providing evidence on the impact on employment of outward foreign direct investment, particularly from developed countries into low‐wage countries, which is a major concern in many developed countries.
Design/methodology/approach
The effects of foreign production undertaken by Belgian foreign‐oriented companies on employment in Belgium are investigated by performing econometric tests for complementarity or substitution between home and affiliate employment. The data are from the Amadeus database and consist of a sample of 254 Belgian parent companies with foreign affiliates in low‐wage and other high‐wage European countries during the 1999‐2007 period.
Findings
The results show that, given the size of parent production in the home country, Belgian multinational enterprises with foreign affiliates in higher‐wage European countries tend to employ more labour at home the more they produce in the host country. This probably reflects the needs of foreign affiliates in higher‐wage European countries for management and supervisory services from parent companies. Another explanation might be that Belgian outward FDI is largely vertical. In contrast, no evidence is found about employment reallocation between parents and affiliates operating in lower‐wage European countries.
Originality/value
The paper provides evidence on overall effects on employment in Belgium of its outward foreign direct investment for the period 1999‐2007, i.e. using the most recent data available. In contrast to many other studies, statistical diagnostic tests were carried out to choose the appropriate model to best fit the data.
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Michel Dumont, Nikolina Stojanovska and Ludo Cuyvers
The paper aims to assess to what extent the general trends with regard to world inequality can be explained by rising international economic integration, technological change and…
Abstract
Purpose
The paper aims to assess to what extent the general trends with regard to world inequality can be explained by rising international economic integration, technological change and (labour market) institutions.
Design/methodology/approach
Based on the existing literature, the stylized facts on inequality between and within nations, globalisation and technological change are reviewed, after which the empirical evidence of the impact of international trade and poverty in developing countries is discussed.
Findings
The paper argues that despite substantial theoretical and empirical contributions, so far no straightforward conclusions are warranted. However, historical evidence suggests that, from a policy perspective, the rise in inequality – witnessed in a large number of developing as well as developed countries – ought to be acknowledged and tackled to avoid a possible backlash against globalisation. The inconclusiveness that empirical work on inequality and its determinants offers, might be explained by substantial differences across countries in their institutional framework.
Originality/value
The importance of interactions between institutions, technology and globalisation and their impact on world inequality is still not very well understood. The paper is an appeal for investigating more these interactions.
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Nadiya Ukrayinchuk and Hubert Jayet
Purpose – The purpose of this paper is try to answer the following question: to which extent the observed location pattern is driven by network effects or by traditional location…
Abstract
Purpose – The purpose of this paper is try to answer the following question: to which extent the observed location pattern is driven by network effects or by traditional location factors, like the structure and behaviour of the local labour market, housing market, public goods, and local tax rates? Design/methodology/approach – The paper uses an econometric model derived from random utility maximization. This model is estimated on a panel of Helvetic labor market areas, using a two stages estimation method. The first stage allows the network effect to be estimated. In the second stage, it estimates the impact of standard location factors. Findings – The paper finds evidence of a very strong network effect. This network effect is a very important location factor and implies that a location may attract current immigrants mainly because it attracted previous immigrants, even if the traditional location factors are not a source of attractiveness. Research limitations/implications – The present study corroborates earlier work on the Italian case. There is still some work to be done for taking account of the highly localized nature of network externalities. Originality/value – The impact of network on migrants' behavior is a hotly debated issue. However, there is almost no analysis of this impact on migrants' location. Conversely, if the high level of concentration of immigrants is a well known stylized fact, there is almost no study of the factors explaining this concentration. The research starts filling these two gaps.
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Bob Deacon, Philippe De Lombaerde, Maria Cristina Macovei and Sonja Schröder
This paper aims to review the case for improved (supra‐national) regional social and labour policies in principle, assess the extent to which existing regional associations of…
Abstract
Purpose
This paper aims to review the case for improved (supra‐national) regional social and labour policies in principle, assess the extent to which existing regional associations of governments and regional organizations are actually developing effective regional labour policies in different sub‐regions of Europe, Latin America, Africa and Asia, and finally explore the driving forces behind their development and suggest how they might be further enhanced.
Design/methodology/approach
The paper compares the emergence of regional policies concerning labour rights and migrant workers' rights across regions. A sample of more than 15 regional arrangements are then ranked on the basis of their commitment in these areas. Finally, correlations between these rankings and different indicators of (real) regional interdependence are looked at.
Findings
The paper shows that regional socio‐economic policies are gaining importance in different world regions, although speeds are varied and generally low. It is difficult, however, to find strong correlations with indicators of regional interdependence such as trade or migration.
Originality/value
The paper presents one of the first systematic accounts of the development of regional socio‐economic policies in different world regions. It shows at the same time that huge opportunities for new policy initiatives exist in this area.
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A decision support model is presented and discussed which aims at identifying realistic export opportunities for a given exporting country. The model consists of a screening…
Abstract
A decision support model is presented and discussed which aims at identifying realistic export opportunities for a given exporting country. The model consists of a screening process of four consecutive filters, through which relevant information on markets (such as country risk indicators, macroeconomic data, imports per product group, etc.) is fed, and which allows the identification and deletion of less interesting market opportunities. Results are reported of the application of this decision support model to the case of Thailand, adapted for an analysis of foreign trade data at the SITC four‐digit level up to 1997. These results are compared with previous results obtained using the same model. In this way, Thailand's export opportunities in individual countries, and in the Asia‐Pacific region in particular, are listed and categorised according to criteria such as import market characteristics and Thailand's market share in the various markets.
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Rezart Hoxhaj and Florian Miti
The purpose of this paper is to analyze the impact of the coronavirus (COVID-19) pandemic on participation and time allocated to work from home (WFH) by ethnic/racial group.
Abstract
Purpose
The purpose of this paper is to analyze the impact of the coronavirus (COVID-19) pandemic on participation and time allocated to work from home (WFH) by ethnic/racial group.
Design/methodology/approach
The authors employ USA time-use data [American Time Use Survey (ATUS)] for the 2017–2020 period and a parametric approach in their analysis.
Findings
Estimates show that the time allocated to WFH increased during COVID-19, especially for women. This increase is likely driven by more workers shifting to WFH (higher participation) rather than by longer hours worked by those who already teleworked. The authors also find relevant differences in the impact of COVID-19 on WFH by ethnic/racial group. Among ethnic/racial groups, only Asians increased WFH compared to White Americans. Within this ethnic group, the authors find significant differences across genders. Asian men increased participation in WFH, whereas Asian women increased both participation and hours worked, compared to White American women. Differences in this racial/ethnic group could be explained by previous research, which demonstrates a higher ability of Asians to perform job tasks remotely. However, this finding could also be attributed to an increase in discrimination during the COVID-19 pandemic.
Originality/value
This paper contributes to the recent and limited literature exploring the heterogeneous impact of COVID-19 on participation and time allocated to WFH by ethnic/racial group. Understanding the mechanisms driving vulnerable populations' abilities to work during socioeconomic downturns is of high policy importance.