a column by Yukiko Asai for VOX: CEPR’s Policy Portal
One factor exacerbating gender gaps in employment is the cost of affording maternity and parental leave to women as primary caregivers.
This column analyses the relationship between the costs of providing parental leave and labour demand for childbearing-age women. As evidenced by a series of reforms in Japan in the last two decades, reducing the burden of parental leave costs from firms to social insurance systems increases both labour demand and starting wages for such workers.
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Showing posts with label labour_demand. Show all posts
Showing posts with label labour_demand. Show all posts
Wednesday, 11 September 2019
Thursday, 27 December 2018
How the future of work may unfold: A corporate demand-side perspective
a colunm by Jacques Bughin for VIX: CEPR’s Policy Portal
Advances in artificial intelligence have led to fears of job losses.
This column uses a global survey covering more than 3,000 executives across 14 sectors and ten countries to examine the impact of AI on the demand side of the labour market. Ultimately, the effect on employment will depend on whether companies choose to use current forms of AI for innovation or pure automation, and whether they foresee a return from it.
Continue reading
Advances in artificial intelligence have led to fears of job losses.
This column uses a global survey covering more than 3,000 executives across 14 sectors and ten countries to examine the impact of AI on the demand side of the labour market. Ultimately, the effect on employment will depend on whether companies choose to use current forms of AI for innovation or pure automation, and whether they foresee a return from it.
Continue reading
Sunday, 24 September 2017
Are ICT displacing workers in the short run? Evidence from seven European countries
an article by Smaranda Pantea (European Commission, Brussel, Belgium and Ministry of Public Finance, Romania), Anna Sabadash (Eurostat, European Commission, Luxembourg) and Federico Biagi (European Commission, Seville, Spain and University of Padua, Italy) published in Information Economics and Policy Volume 39 (June 2017)
Highlights
This paper examines the short run labour substitution effects of using ICT at firm-level in the manufacturing and services sectors in seven European countries, during the period 2007–2010. The data come from a unique dataset provided by the ESSLait Project on Linking Microdata, which contains internationally comparable data based on the production statistics linked at firm level with the novel ICT usage indicators.
We adopt a standard conditional labour demand model and control for unobservable time-invariant firm-specific effects.
The results show that ICT use has a statistically insignificant labour substitution effect and this effect is robust across countries, sectors and measures of ICT use. Our findings suggest that increased use of ICT within firms does not reduce the numbers of workers they employ.
JEL classification: J23, J24, O33, L86
Highlights
- We study the short run substitution effect of ICT use on firms' employment.
- We use highly accurate quantitative measures of ICT use within firms.
- We use a longitudinal dataset containing internationally comparable firm level data for seven European countries, covering manufacturing and services sectors.
- We find no evidence that ICT substitutes labour in the short run.
- The insignificant effect of ICT is very robust across ICT measures, countries and sectors.
This paper examines the short run labour substitution effects of using ICT at firm-level in the manufacturing and services sectors in seven European countries, during the period 2007–2010. The data come from a unique dataset provided by the ESSLait Project on Linking Microdata, which contains internationally comparable data based on the production statistics linked at firm level with the novel ICT usage indicators.
We adopt a standard conditional labour demand model and control for unobservable time-invariant firm-specific effects.
The results show that ICT use has a statistically insignificant labour substitution effect and this effect is robust across countries, sectors and measures of ICT use. Our findings suggest that increased use of ICT within firms does not reduce the numbers of workers they employ.
JEL classification: J23, J24, O33, L86
Tuesday, 6 August 2013
Underemployment and the productivity paradox
via The Work Foundation by Ian Brinkley
The new blog from Danny Blanchflower is a timely reminder that the unemployment numbers do not tell the full story when it comes to measuring labour supply and demand.
Together with Jonathon Portes, Professor Blanchflower has estimated the number of hours that people would like to work and the number of hours that employers are willing to pay for. This shows that there is much more “slack” in the labour market than the unemployment rate indicates.
Continue reading includes links to lots of useful information
The new blog from Danny Blanchflower is a timely reminder that the unemployment numbers do not tell the full story when it comes to measuring labour supply and demand.
Together with Jonathon Portes, Professor Blanchflower has estimated the number of hours that people would like to work and the number of hours that employers are willing to pay for. This shows that there is much more “slack” in the labour market than the unemployment rate indicates.
Continue reading includes links to lots of useful information
Tuesday, 2 April 2013
The imprudence of labour market flexibilization in a fiscally austere world
an article by Jeronim Capaldo (United Nations Department of Economic and Social Affairs) and Alex Izurieta (United Nations Conference on Trade and Development) published in International Labour Review Volume 152 Issue 1 (March 2013)
Abstract
This article assesses the effects of combining fiscal austerity with policies aimed at reducing labour costs and, in doing so, sheds new light on current policy debates.
Taking a global perspective, the authors explore the aggregation problem by proposing a stylised analytical macro-model with explicit distribution dynamics. In this framework, flexibilisation policies that suppress the labour share trigger global feedbacks that result in a downward spiral, with contraction even in export-led economies.
The initial gains of more competitive economies are shown to be ephemeral.
In the long term, the world economy is essentially wage-led and responds positively to coordinated Keynesian stimuli.
Abstract
This article assesses the effects of combining fiscal austerity with policies aimed at reducing labour costs and, in doing so, sheds new light on current policy debates.
Taking a global perspective, the authors explore the aggregation problem by proposing a stylised analytical macro-model with explicit distribution dynamics. In this framework, flexibilisation policies that suppress the labour share trigger global feedbacks that result in a downward spiral, with contraction even in export-led economies.
The initial gains of more competitive economies are shown to be ephemeral.
In the long term, the world economy is essentially wage-led and responds positively to coordinated Keynesian stimuli.
Tuesday, 18 December 2012
New report shows recent developments in skills and labour demand during the recession
via Social Europe: a publication from the European Commission, Social Affairs & Inclusion
The overall labour demand is still affected by the recession, yet vacancies are hard to fill in the health, ICT, engineering, sales and finance sectors, the new European Vacancy and Recruitment Report says.
This is the first of a set of biennial reports to be launched by the European Commission, focusing on labour demand and skills requirements, thus providing a better insight into the functioning of labour markets.
Some of the key findings in this edition:
More about the European Vacancy and Recruitment Report
The overall labour demand is still affected by the recession, yet vacancies are hard to fill in the health, ICT, engineering, sales and finance sectors, the new European Vacancy and Recruitment Report says.
This is the first of a set of biennial reports to be launched by the European Commission, focusing on labour demand and skills requirements, thus providing a better insight into the functioning of labour markets.
Some of the key findings in this edition:
- The number of vacancies in 15 EU countries fell slightly in the first quarter of 2011. But there were still 12 million job-finders in the third quarter of 2011.
- Private sector recruitment responded faster and stronger to the business cycle than the public sector, where austerity measures are growing.
- Growth in major occupational groups (2007-2010) was strongest for a number of high skilled occupations, such as business professionals, some teaching occupations, health professionals, but also personal care and related workers and for a small number of elementary occupations.
- Recent recruitment patterns reflect a trend of educational upgrading in general and rising skills requirements across all occupational groups.
- However most people found a job in low to intermediate skilled services, such as shop salespersons, waiters, personal care workers, etc. due to high labour turnover.
- Recruitment difficulties in certain areas exist in all countries independently of the labour market situation, including in Greece, Romania and Spain.
- Bottleneck occupations with talent shortages are concentrated in the health (e.g. nursing and midwifery associate professionals and medical doctors), ICT (e.g. computing professionals) engineering (e.g. physical and engineering science technicians), sales (e.g. sales representatives) and finance (e.g. accountants) sectors.
More about the European Vacancy and Recruitment Report
Tuesday, 4 December 2012
Heterogeneous Firm Responses to Rising Teenage Wages
an article by Dean R. Hyslop, David C. Maré, Steven Stillman and Jason Timmins (Victoria University of Wellington, New Zealand) published in LABOUR Volume 26 Issue 4 (December 2012)
Abstract
Substantial youth minimum wage changes in New Zealand between 2000 and 2007 raised teenage average wages by 5-10 per cent relative to those for adults.
We use Statistics New Zealand’s Linked Employer-Employee Database (LEED) to examine whether firms’ teenage labour demand responses to these changes are greater for firms with higher teenage-employment share.
We find evidence that high teen-employers reduced their teen employment relative to other firms and had lower survival rates over the period.
However, firms that entered the main teen-employment industries had higher teen-employment shares than continuing firms. The results are consistent with endogenous technology adoption in response to non-marginal changes in relative wages.
JEL classifications: J21, J23, J31, J38
Abstract
Substantial youth minimum wage changes in New Zealand between 2000 and 2007 raised teenage average wages by 5-10 per cent relative to those for adults.
We use Statistics New Zealand’s Linked Employer-Employee Database (LEED) to examine whether firms’ teenage labour demand responses to these changes are greater for firms with higher teenage-employment share.
We find evidence that high teen-employers reduced their teen employment relative to other firms and had lower survival rates over the period.
However, firms that entered the main teen-employment industries had higher teen-employment shares than continuing firms. The results are consistent with endogenous technology adoption in response to non-marginal changes in relative wages.
JEL classifications: J21, J23, J31, J38
Friday, 17 August 2012
Educational qualifications mismatch in Europe: Is it demand or supply driven?
an working paper by Emanuela Ghignoni and Alina Verashchagina published by the Sapienza University of Rome
Abstract
Most papers dealing with individual overeducation risks focus on labour supply characteristics and workers behaviour.
On the other hand, only few studies consider labour demand characteristics and technological change.
In this paper we analyse the influence of both demand and supply factors on educational mismatch in a set of ten European countries. Our hypothesis, confirmed by results obtained using ordered probit model with sample selection, is that demand factors generally play a major role in reducing educational mismatch in technologically more advanced countries, whereas supply factors are more important in countries that are lagging behind in the international division of labour.
At the same time, important cross-country and gender differences have been identified in the way the demand/supply factors operate. All this calls for the fine-tuning of policies aimed to tackle the problem of educational mismatch.
Apparently, EPL does not appear either to hinder technological development, nor increase overeducation.
Full text (PDF 45pp)
JEL classification: I2, J24, C35
Abstract
Most papers dealing with individual overeducation risks focus on labour supply characteristics and workers behaviour.
On the other hand, only few studies consider labour demand characteristics and technological change.
In this paper we analyse the influence of both demand and supply factors on educational mismatch in a set of ten European countries. Our hypothesis, confirmed by results obtained using ordered probit model with sample selection, is that demand factors generally play a major role in reducing educational mismatch in technologically more advanced countries, whereas supply factors are more important in countries that are lagging behind in the international division of labour.
At the same time, important cross-country and gender differences have been identified in the way the demand/supply factors operate. All this calls for the fine-tuning of policies aimed to tackle the problem of educational mismatch.
Apparently, EPL does not appear either to hinder technological development, nor increase overeducation.
Full text (PDF 45pp)
JEL classification: I2, J24, C35
Wednesday, 27 July 2011
Population ageing and labour markets
an article by Anna Cristina D'Addio, Mark Keese and Edward Whitehouse (Directorate for Employment, Labour and Social Affairs, OECD) published in Oxford Review of Economic Policy (Volume 26 Number 4 (Winter 2010)
Abstract
In the face of rapid population ageing, the long-run fall in effective retirement ages in most OECD countries needs to be reversed. There are some positive signs that this is beginning to happen, but early exit from the labour force, i.e. well before official old-age pension ages, still remains a very common phenomenon in OECD countries. In this paper we first compare recent trends in the labour situation of older workers across OECD countries. This is followed by a discussion of supply-side and demand-side factors that have been driving these trends. In particular, new evidence is presented on incentives to retire that are embedded in pension systems. We conclude that recent reforms in most countries in this area are working in the direction of encouraging later retirement, although in a few countries there are still substantial incentives to stop working early. We then examine to what extent there are barriers on the demand side which may also be discouraging work at an older age such as age discrimination, seniority rules in wage setting, low training participation and employment protection rules. We conclude that countries have also begun to tackle these barriers as well. Nevertheless, while considerable pension reform has undoubtedly strengthened incentives to continue working at an older age, further action is still required on the demand side to ensure that those older workers who wish to work longer can do so.
Abstract
In the face of rapid population ageing, the long-run fall in effective retirement ages in most OECD countries needs to be reversed. There are some positive signs that this is beginning to happen, but early exit from the labour force, i.e. well before official old-age pension ages, still remains a very common phenomenon in OECD countries. In this paper we first compare recent trends in the labour situation of older workers across OECD countries. This is followed by a discussion of supply-side and demand-side factors that have been driving these trends. In particular, new evidence is presented on incentives to retire that are embedded in pension systems. We conclude that recent reforms in most countries in this area are working in the direction of encouraging later retirement, although in a few countries there are still substantial incentives to stop working early. We then examine to what extent there are barriers on the demand side which may also be discouraging work at an older age such as age discrimination, seniority rules in wage setting, low training participation and employment protection rules. We conclude that countries have also begun to tackle these barriers as well. Nevertheless, while considerable pension reform has undoubtedly strengthened incentives to continue working at an older age, further action is still required on the demand side to ensure that those older workers who wish to work longer can do so.
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