a column by Giulia Giupponi and Camille Landais for VOX: CEPR’s Policy Portal
Labour hoarding – the practice of retaining excess employees during a negative shock – could potentially help firms avoid re-hiring and training costs when economic conditions improve and act as a form of insurance for workers.
This column uses Italian micro data to show how labour hoarding in the form of short-term work programmes can be beneficial despite being ineffective in the long term.
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Showing posts with label unemployment_insurance. Show all posts
Showing posts with label unemployment_insurance. Show all posts
Wednesday, 30 January 2019
Saturday, 6 January 2018
Responsiveness of wives’ labour supply to husbands’ job loss
a column by Julia Bredtmann, Sebastian Otten and Christian Rulff for VOX: CEPR’s Policy Portal
Little is known about how unemployment shocks are absorbed within the household. This column uses longitudinal micro data for 28 European countries to investigate the effect of husbands’ job loss on wives’ labour supply. Overall, there is evidence that women increase their labour supply in response to their husband losing a job. However, the response varies over both the business cycle and across different welfare regimes.
Continue reading
Little is known about how unemployment shocks are absorbed within the household. This column uses longitudinal micro data for 28 European countries to investigate the effect of husbands’ job loss on wives’ labour supply. Overall, there is evidence that women increase their labour supply in response to their husband losing a job. However, the response varies over both the business cycle and across different welfare regimes.
Continue reading
Monday, 22 June 2015
Activation and active labour market policies in OECD countries: stylised facts and evidence on their effectiveness
an article by John P Martin (UCD Geary Institute for Public Policy, University College Dublin, Ireland) published in IZA Journal of Labor Policy 4:4 (2015)
Abstract
Activation policies aimed at getting working-age people off benefits and into work have become a buzzword in labour market policies. Yet they are defined and implemented differently across OECD countries, and their success rates vary too.
The Great Recession has posed a severe stress test for these policies, with some commentators arguing that they are at best “fair weather” policies. This paper sheds light on these issues mainly via the lens of recent OECD research. It presents the stylised facts on how OECD countries have responded to the Great Recession in terms of ramping up their spending on active labour market policies (ALMPs), a key component in any activation strategy.
It then reviews the macroeconomic evidence on the impact of ALMPs on employment and unemployment rates. This is followed by a review of the key lessons from recent OECD country reviews of activation policies. It concludes with a discussion of crucial unanswered questions about activation.
JEL codes: J01, J08, J68
Full text (HTML)
Abstract
Activation policies aimed at getting working-age people off benefits and into work have become a buzzword in labour market policies. Yet they are defined and implemented differently across OECD countries, and their success rates vary too.
The Great Recession has posed a severe stress test for these policies, with some commentators arguing that they are at best “fair weather” policies. This paper sheds light on these issues mainly via the lens of recent OECD research. It presents the stylised facts on how OECD countries have responded to the Great Recession in terms of ramping up their spending on active labour market policies (ALMPs), a key component in any activation strategy.
It then reviews the macroeconomic evidence on the impact of ALMPs on employment and unemployment rates. This is followed by a review of the key lessons from recent OECD country reviews of activation policies. It concludes with a discussion of crucial unanswered questions about activation.
JEL codes: J01, J08, J68
Full text (HTML)
Thursday, 11 June 2015
What factors contributed to changes in employment during and after the Great Recession?
an article by Ammar Farooq and Adriana D Kugler (Georgetown University, Washington DC, USA) published in IZA Journal of Labor Policy Volume 4 Issue 1 (2015)
Abstract
Unemployment increased drastically over the course of the Great Recession from 4.5 percent prior to the recession to 10 percent at its peak in October 2009. Since then, the unemployment rate has come down steadily, and it stood at 5.8 percent in November 2014.
Based on existing analyses and some new evidence, this paper establishes that much of the change in unemployment during the Great Recession and during the recovery can be attributed to cyclical factors rather than structural factors.
The paper then presents new suggestive evidence to quantify the employment impacts of various counter-cyclical policies introduced during this time.
We conduct a counter-factual and find that employment would have been between 4.2 percent and 4.5 percent lower had it not been because of the spending in Medicaid injected in local economies by the Recovery Act.
In addition, we conduct a differences-in-differences and triple difference analysis, which suggests that the Work Opportunity Tax Credits increased the likelihood of employment by about 4.7 percent for disconnected youth but had no effect on disabled and unemployed veterans.
Finally, we also find evidence that suggests that the Hiring Incentive to Restore Employment (HIRE) Act increased employment of the unemployed by 2.6 percent and that the reemployment reforms introduced in 2012 as part of the UI extensions increased employment by 6 percent for the long-term unemployed.
JEL codes: JE24, J23, J63, J64, J65, J68
Full text
Hazel’s comment:
Yes, the research is American but the findings could be applied to most, if not all, of the first-world countries.
At least that is how I read it.
Abstract
Unemployment increased drastically over the course of the Great Recession from 4.5 percent prior to the recession to 10 percent at its peak in October 2009. Since then, the unemployment rate has come down steadily, and it stood at 5.8 percent in November 2014.
Based on existing analyses and some new evidence, this paper establishes that much of the change in unemployment during the Great Recession and during the recovery can be attributed to cyclical factors rather than structural factors.
The paper then presents new suggestive evidence to quantify the employment impacts of various counter-cyclical policies introduced during this time.
We conduct a counter-factual and find that employment would have been between 4.2 percent and 4.5 percent lower had it not been because of the spending in Medicaid injected in local economies by the Recovery Act.
In addition, we conduct a differences-in-differences and triple difference analysis, which suggests that the Work Opportunity Tax Credits increased the likelihood of employment by about 4.7 percent for disconnected youth but had no effect on disabled and unemployed veterans.
Finally, we also find evidence that suggests that the Hiring Incentive to Restore Employment (HIRE) Act increased employment of the unemployed by 2.6 percent and that the reemployment reforms introduced in 2012 as part of the UI extensions increased employment by 6 percent for the long-term unemployed.
JEL codes: JE24, J23, J63, J64, J65, J68
Full text
Hazel’s comment:
Yes, the research is American but the findings could be applied to most, if not all, of the first-world countries.
At least that is how I read it.
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