The effects of labor supply shocks on labor market outcomes: Evidence from the Israeli–Palestinian conflict

Since September 2000, as a result of mobility restrictions, the supply of Palestinian workers competing for local jobs in the West Bank has increased by about fifty percent. This paper takes advantage of this unique natural experiment to study the effects of labor supply shocks on labor market outcomes. Using quarterly information on wages and employment in each city in the West Bank, the paper analyzes the short-run adjustment of labor markets to a large inflow of workers separately from the effects of political instability. The results suggest that low-skilled wages are adversely affected by an increase in the supply of low- and high-skilled workers, while high-skilled wages are only weakly negatively related to an increase in their own supply. This is consistent with a scenario in which high-skilled workers compete for low-skilled jobs, pushing the low-skilled into unemployment. This latter hypothesis is confirmed by analyzing the effects of changes in labor supply on unemployment.     

Accounting for wage and employment changes in the US from 1968–2000: A dynamic model of labor market equilibrium

In this article, we present a unified treatment of and explanation for the evolution of wages and employment in the US over the last 30 years. Specifically, we account for the pattern of changes in wage inequality, for the increased relative wage and employment of women, for the emergence of the college wage premium and for the shift in employment from the goods to the service-producing sector. The underlying theory we adopt is neoclassical, a two-sector competitive labor market economy in which the supply of and demand for labor of heterogeneous skill determines spot market skill rental prices. The empirical approach is structural. The model embeds many of the features that have been posited in the literature to have contributed to the changing US wage and employment structure including skill-biased technical change, capital-skill complementarity, changes in relative product-market prices, changes in the productivity of labor in home production and demographics such as changing cohort size and fertility.     

Varieties of capitalism,neoliberalism and the economic crisis of 2008–?

This article examines the responses of national governments to the economic crisis that commenced in 2008. We argue that the current search for new bases for accumulation is leading to reforms designed to weaken the position of labour. Moreover, the tendency towards a weakening of labour's position was already evident across different ‘varieties of capitalism’ before the crisis erupted. We discuss the implications for comparative institutional analysis and stress the need for a renewed focus on the underlying dynamics of capitalist economies.     

Assessing the impact of liberalisation policies on the Greek labour market: an insider–experts' view from the perspective of the varieties of liberalisation

During the recent Great Recession (2008–2018), Greece has become the prototype example of the implementation of austerity policies in Europe. Contrary to public discourse, these austerity policies were complemented by substantial labour market reforms that promoted employment and wage flexibility. This article aims to present a theory-driven understanding of the implementation and the effects of these reforms. For this purpose, we employ a qualitative study consisting of semi-structured interviews with 50 labour market experts—government officials and labour lawyers, academics, labour union representatives and employer association representatives. Using Thelen's framework on the Varieties of Liberalization, we conclude that, contrary to the initial aims of the reforms, Greece followed a trajectory of direct deregulation, reducing considerably the level of both coordination between employers and workers, and coverage of employment protection. The interviews show that the dismantling of collective bargaining system was the most decisive move in this path.     

The moderating effects of traditionality–modernity on the effects of internal labor market beliefs on employee affective commitment and their turnover intention

This study addresses a possible moderating effect of cultural values on the relationship between employee beliefs in human resource management (HRM) practices and employee outcomes. Although employee belief regarding internal labor market (ILM) operation within their firms could be positively related to employee commitment and negatively related to their turnover intention, employee cultural values may act as a contextual variable that strengthens or weakens such relationships. We test the moderating effects of two cultural values, traditionality and modernity in the context of Kenya where the blend of these cultural values is an emerging reality, given the rapid pace of urbanization in recent years coupled with effects of globalization and the digital era. Our study indeed found support for the moderating effects of these cultural values. The association between ILM beliefs and employee affective commitment was found to be greater for employees with more traditional values. In contrast, the relationship was weaker for employees with more modern cultural values. These moderating patterns were also found in the relationship between ILM beliefs and turnover intention. Implications for management research, theory, and practice are discussed.     

Dynamics,stability, and foresight in the Shapley–Scarf housing market

While most of the literature starting with Shapley and Scarf (1974) have considered a static exchange economy with indivisibilities, this paper studies the dynamics of such an economy. We find that both the dynamics generated by competitive equilibrium and the one generated by the weak dominance relation, converge to a set of allocations we define as strictly stable, which we can show to exist. Moreover, we show that even when only pairwise exchanges between two traders are allowed, the strictly stable allocations are attained eventually if traders are sufficiently farsighted.     

The impact of the economic cycle on fatal injuries. The case of UK 1971–2007

The aim of this paper is to investigate the effect of the economic cycle on workplace accidents. In particular, the effect of the usual factors of the economic cycle (GDP per capita, Unemployment) is examined along with the effect of working hours (to account for flexible employment) on fatal injuries (to exclude the effect of under-reporting data) for the period 1971?C2007 in UK. Detailed multiple regression analysis is applied, which indicates a controversial and inelastic relation of GDP per capita (negative) and unemployment rate (positive), but also an elastic relation of working hours (positive) to fatal injuries. Further research in data of various countries is proposed before arriving to certain conclusions.     

What will be the impact on future legacy campaigns of changing demographic,economic, cultural and religious trends?

This paper discusses some key issues that will have dramatic effects on legacy/bequest income over the next 30 years. Economic, demographic, cultural and religious changes will mean that all nonprofits will have to adapt their legacy campaigns to meet emerging community and lifestyle trends. Campaigns will have to target the particular attitudes, motivations and expectations of each community if legacy income is to rise rather than fall. To date, little research has been completed in the UK to ascertain what the likely outcomes will be. This paper alerts fundraisers to some of the key issues. Copyright © 2000 Henry Stewart Publications.     

The Amsterdam rent index: The housing market and the economy, 1550–1850

The paper investigates the long run historic development of the Amsterdam rental housing market (1550–1850). Using rent data on a large cross section of residential properties in Amsterdam we are able to develop an annual constant-quality rent index for the entire time period. Whereas nominal rents nearly tripled over the considered sample period, average Amsterdam house rents, in real terms, had approximately the same level in 1850 as they exhibited in 1550. Otherwise stated, nominal rents and goods prices rose at the same pace. Over these 301 years, the real index moves between a minimum level of 45.6 and a maximum of 162.4. As concerns the relation between the housing market and the real economy, we find empirical evidence that fluctuations in rents and fluctuations in proxies of business cycle activity comove, both in nominal and in real terms.     

Relaxing Hukou: Increased labor mobility and China’s economic geography

China’s Hukou system poses severe restrictions on labor mobility. This paper assesses the possible consequences of relaxing these restrictions for China’s internal economic geography. We base our analysis on a new economic geography (NEG) model. First, we estimate the important model parameters using data on 264 of China’s prefecture cities. Second, we use these estimates as inputs in a simulation of the full NEG model under different labor mobility regimes. We find that increased labor mobility leads to more pronounced core–periphery outcomes. Beijing, Shanghai, Guangzhou and Chongqing in particular will further strengthen their dominant place in China’s urban hierarchy. In addition, two other groups of cities can be distinguished: those in China’s populous heartland offering preferential access to China’s enormous internal market, and more peripheral cities that are better shielded from competition with China’s economic heartland by virtue of their relative remoteness.     

Savings and investments in the OECD, 1970–2007: A test of panel cointegration with regime changes

In this paper we test for the existence of a long-run relationship between investment and savings (the Feldstein–Horioka puzzle) in a panel of 18 OECD countries, 1970–2007, allowing for heterogenous breaks in the coefficients. For this purpose we develop a bootstrap panel cointegration with breaks robust to cross-section dependence, shown by simulation to enjoy good size and power properties provided that some care is applied in its use. The tests suggest that, even allowing for parameter shifts in the countries where capital control regulations changed in the sample period, there is no evidence of an investment–savings long-run relationship for the panel as a whole.     

Wage–hours contracts,overtime working and premium pay

This paper offers a contract-based theory to explain the determination of standard hours, overtime hours and overtime premium pay. We expand on the wage contract literature that emphasises the role of firm-specific human capital and that explores problems of contract efficiency in the face of information asymmetries between the firm and the worker. We first explore a simple wage–hours contract without overtime and show that incorporating hours into the contract may itself produce efficiency gains. We then show how the introduction of overtime hours, remunerated at premium rates, can further improve contract efficiency. Our modelling outcomes in respect of the relationship between the overtime premium and the standard wage rate relate closely to earlier developments in hedonic wage theory. Throughout, we emphasise the intuitive reasoning behind the theory and we also supply relevant empirical evidence. Mathematical derivations are provided in an Appendix.     

The impact of the shutdown policy on the asymmetric interdependence structure and risk transmission of cryptocurrency and China’s financial market

By taking Bitcoin, Litecoin, and China’s gold and RMB/US dollar exchange rate market as research objects, this paper apply the MF-ADCCA and time-delayed DCCA methods to study the impact of China’s mainland shutdown of cryptocurrencies trading on the non-linear interdependent structure and risk transmission of cryptocurrencies and its financial market. Empirical results show that the cross-correlation between cryptocurrencies and China’s financial market has a long memory and asymmetric multifractal characteristics. After the shutdown, the long memory between cryptocurrencies and Chinese gold has weakened, and the long memory between cryptocurrencies and the RMB/US dollar exchange rate market was strengthened. China’s shutdown policy has a certain risk prevention effect. Specifically, after the implementation of the policy, the risk transmission of cryptocurrencies to China’s financial market has weakened, but the influence of China’s financial market has gradually strengthened.     

Fostering societal impact and job satisfaction: the role of performance management and leader–member exchange

ABSTRACT

Performance management (PM) can alienate employees from experiencing societal impact. This is problematic since societal impact influences employees’ job satisfaction. To avoid such unintended effects, we investigate two conditions under which PM could instead benefit the societal impact and job satisfaction of employees: consistency and leader-member exchange. Results show consistent PM fosters job satisfaction, mediated by societal impact and moderated by leader–member exchange. Public organizations should streamline expectations communicated through PM and constructive leader relationships could reinforce this process. By examining the conditions under which PM can avoid unintended effects on employees, we add to the debate on PM effectiveness.     

After the Storm: Postal Politics and Labor Relations Following the 1970 U.S. Postal Wildcat Strike, 1970–1981

A common misconception of the 1970 United States postal wildcat strike views it as a remarkable grassroots mass activity that nonetheless exhausted itself after 8 days. As the picket lines faded, this master narrative holds, postal unionists returned to work while elected union leadership returned to Capitol Hill to lobby and negotiate, help reorganize the post office and reshape postal policy. In fact, there is much more complexity to the post-strike decade, including localized wildcats; strike threats; contentious collective bargaining; the NALC slapping (then withdrawing) a trusteeship on its largest, most militant branch; and insurgent reformists ascending to national leadership in the NALC and APWU. Far from being a one-off, I argue, the 1970 strike represented the beginning of a new “democratic movement culture” among postal unionists that used historical experience and memory of the strike to maintain pressure on the USPS and its unions to reform themselves.     

Minimum wage is efficient wage in Turkish labor market: TAR–cointegration analysis

This study has two main purposes. First one is the necessity of taking minimum wages into account, if there is a purpose to analyze the relationship between wages and productivity in an economy which has high unemployment rates and informal employment. Second one is about the analyzing method of this relationship. We choose TAR cointegration analysis for this relation. First step of this analysis is testing for stationarity of the variables. However the low power of traditional unit root tests is examined and proved in many studies but not taken into account in TAR cointegration studies in literature. This study shows that traditional unit root tests are unfavorable for the variables which have TAR structures. Because of this shortcoming of traditional unit root tests, these results must be supported with TAR unit root tests.     

Does economic globalization affect the level and volatility of labor demand by skill? New insights from the Tunisian manufacturing industries

The central aim of this paper is to assess the effects of economic globalization on the level and volatility of labor demand for different skill groups in Tunisia. Using a panel dataset covering six manufacturing industries between 1983 and 2009, three main findings are reported. First, exports and imports exert a positive impact only on the semi-skilled and skilled labor demand while foreign direct investment flows increase the demand for semi-skilled and unskilled workers. Second, the regional analysis suggests that exports to the European Union boost the demand for the semi-skilled and skilled labor. Imports from the rest of the world exert similar effects on the demand for these two categories of workers. It emerges also that imports from the European Union lead to a higher demand for skilled labor, which gives support to the validity of the skill-enhancing trade hypothesis in Tunisian industries. Finally, our findings suggest that both exports and imports rise the employment volatility associated with skilled workers. On the other hand, there is a weak evidence of increased employment volatility as a result of foreign direct investment flows.     

Integrated reporting of environmental,social, and governance and financial data: Does the market value integrated reports?

The concept of reporting nonfinancial information within the annual report, so‐called Integrated Reporting (IR) is a rising topic in reporting practice. Supporters claim that IR provides a better view regarding the value creation of a firm. This study investigates the value relevance of IR and the influence of certain characteristics such as assurance. Thus, this paper contributes to the existing literature by examining the actual advantages for firms when adopting an IR approach. The Ohlson model is applied for the market valuation of 50 companies of the STOXX Europe 50 between the years 2010 and 2016. The results of this study support the cost‐concerned school by showing a negative influence on the market value. Nonetheless, the study suggests that the quality of the reports is relevant for market valuation, as the negative effect is mitigated by the quality of the reports.     

Event-study evidence of the value of relaxing long-standing regulatory restraints on banks, 1970–2000

In a partial-equilibrium model, removing a binding constraint creates value. However, in general equilibrium, the stakes of other parties in maintaining the constraint must be examined. In financial deregulation, the fear is that expanding the scope and geographic reach of very large institutions might unblock opportunities to build market power from informational advantages and size-related safety-net subsidies.This paper reviews and extends event-study evidence about the distribution of the benefits and costs of relaxing long-standing geographic and product-line restrictions on U.S. financial institutions. The evidence indicates that the new financial freedoms may have redistributed rather than created value. Event returns are positive for some sectors of the financial industry and negative for others. Perhaps surprisingly, where customer event returns have been investigated, they prove negative.