Costs and benefits of Danish active labour market programmes

Since 1994, unemployed workers in the Danish labour market have participated in active labour market programmes on a large scale. This paper contributes with an assessment of costs and benefits of these programmes. Long-term treatment effects are estimated on a very detailed administrative dataset by propensity score matching. For the years 1995 – 2005 it is found that private job training programmes have substantial positive employment and earnings effects, but also public job training ends up with positive earnings effects. Classroom training does not significantly improve employment or earnings prospects in the long run. When the cost side is taken into account, private and public job training still come out with surplusses, while classroom training leads to a deficit.     

Externalization of employees: thinking about going somewhere else

Externalization of employment relations was a general trend among businesses in the 1990s. As a consequence we observe an increasing use of temporary workers, outsourcing and insourcing. This paper is concerned with the consequences of externalization of employment relations from the perspective of employees. The paper is based on an in-depth empirical study of a corporate adjustment programme in a large government-owned energy producer in Sweden. The company is trying to stimulate internal mobility by means of training programmes, adjusting its workforce to changes in market demand without lay-offs. I argue that externalization of employment relations is not only a matter of temporary, administrative or geographical distance between employer and employee. Instead a complementary form - externalization of responsibility - is suggested. The results may have consequences for the understanding of human resource policies aiming at employability.     

Industry-specific or generic skills? Conflicting interests of firms and workers

Firms and workers may have conflicting interests with respect to the content of training programmes. On the basis of a model for the investment decision in industry-specific and generic training, I will show that, in the case of imperfect competition for industry-specific skills, workers want more generic training than is socially optimal because the level of generic training puts a lower bound on the wages workers will earn after completing the training, irrespective of whether they stay in the industry or move. Firms, on the other hand, want the generic component of the training to be as low as possible because it decreases their expected returns to industry-specific training.     

Turning Unemployment into Self‐Employment: Effectiveness of Two Start‐Up Programmes*

Turning unemployment into self‐employment has become a major focus of German active labour market policy (ALMP) in recent years. If effective, this would not only reduce Germany's persistently high unemployment rate, but also increase its notoriously low self‐employment rate. Empirical evidence on the effectiveness of such programmes is scarce. We evaluate the effectiveness of two start‐up programmes for the unemployed, where we include the probability of being employed, the probability of being unemployed and personal income as outcome variables. Our results show that at the end of the observation period, both programmes are effective. The considerable positive effects present a stark contrast to findings from evaluations of other German ALMP programmes in recent years. Hence, ALMP programmes aimed at moving the unemployed into self‐employment may prove to be among the most effective, both in Germany and elsewhere.     

建筑业农民工职业技能培训探析

建筑业是吸纳农村劳动力转移就业的重要行业,而农民工技能水平低下、就业不稳定等问题已经影响了建筑行业的发展,职业技能培训的重要性已经凸显.本文通过分析建筑业农民工职业技能培训的现状,对提高培训的有效性提出了相应的措施.     

Effects of the ‘principle of non‐discrimination’ on temporary agency work: compensation and working conditions of temporary agency workers in 15 European countries

This article examines, with reference to Europe (EU‐15), whether temporary agency workers experience less favourable working conditions and compensation than employees with a standard employment contract. Furthermore, it analyses whether the same differences exist in European countries with and without the principle of non‐discrimination in force. The results show that discrimination of temporary workers persists even when we control for other factors. Second, in countries with the principle of non‐discrimination in force, the discrimination is higher with respect to employer‐provided training.     

The distribution of changes in manufacturing employment and the impact of the minimum wage

That employment for workers in durable goods industries is more sensitive to the pace of economic activity than for non-durable goods employees is not a surprising result. What is noteworthy about the conclusions of this study, however, is the manner in which increases in the minimum wage have altered the distribution of employment and sensitivity to short-run changes in employment of production workers in manufacturing industries. By focusing on the distribution of employment and how that distribution changes over the cycle, estimates of some aspects of the impact of the minimum wage that have not previously been analyzed have been developed.The evidence indicates that increases in the minimum wage over the period 1947–1975 have had a significant impact on employment patterns. Minimum wage legislation has had the effect of decreasing the share of projected employment and increasing vulnerability to cyclical changes in employment for the group of workers most ‘marginal’ to the work force low-wage industry employees. Hence, as a result of increased minimum wages, low-wage industry employees are able to obtain fewer jobs during periods of normal employment growth and their jobs are less secure in the face of short-run employment variations.Minimum wage legislation has undoubtedly resulted in higher wages for some of the relatively-low-productivity workers who were able to obtain employment than these workers would have received in its absence. The cost in terms of lost employment opportunities and cyclical vulnerability of jobs, however, has apparently been borne most heavily by low-wage industry employees. The primary beneficiaries of the shifts in the pattern of employment shares occasioned by minimum wage increases were high-wage industry workers, particularly in the ordnance, food, tobacco, and petroleum industries.     

Re-thinking employment quotas in the UAE

Emiratization is a government policy aimed at increasing the share of native workers in the UAE private sector. A distinguishing feature of Emiratization is the use of employment quotas for native workers so that the policy objective is met. We study the impact of the labor quota and find that its effect on native employment is ambiguous. While an increase in the employment quota for native workers increases the share of native workers, it also reduces the industry's production and employment of labor. The policy implications of the employment quota are significant, and ways to mitigate its negative impact include calibrating an optimal quota to maximize native employment, implementing the quota in industries facing less elastic demand for outputs and in industries where native and expatriate labor are closer substitutes.     

Off-the-job training and the shifting role of part-time and temporary employment across institutional models. Comparing Italian and British firms

This article investigates intensity and composition of off-the-job training investments of Italian and British firms in relation to their workforce heterogeneity with respect to the presence of non-standard workers. The main purpose is to assess the relationship between off-the-job training volumes and composition and the recourse to the main types of non-standard employment, that is temporary and part-time contracts, at firm level. Empirical evidence drawn from national surveys of the two countries shows more similarities than expected in terms of the correlation between non-standard employment and training volumes whilst substantial differences arise when disaggregating training interventions according to the types of skills to be developed. Both institutional settings and the different roles of part-time and temporary employment in the labour markets of the two countries contribute to the interpretation of the results.     

Training Employees for African Statistical Offices

A review of the organizational set-up of a national statistical office, its staffing levels and subjects covered has been described. Two groups of employees of a statistical office are considered with respect to the teaching of statistics, namely those already in employment and those expected to be employed by a statistical office. The Statistical Training Programme for Africa (STPA), under which the present study was undertaken, improvement and strengthening of statistical training programmes for employees or expected employees of a statistical office, are described including selected aspects of the programme. Teaching programmes for those currently in employment with the objective of improving their work performance are also described. Achievements and problems of the programme are given. In conclusion a new framework for revitalisation of teaching of statistics in Africa in the 1990s is mentioned.     

Skill shortages and labor market outcomes in Central Europe

The new Central European members of the EU have been characterized by low employment rates, especially among unskilled workers, despite the GDP recoveries and large private sector shares in output and employment. Evidence points at skill shortages in Central Europe as a key impediment to faster labor reallocation and convergence to the EU-15 employment structures. In this paper, we develop a simple model of labor reallocation with transaction costs and show how skill shortages can inhibit firm creation and increase income inequality. We use the model to examine the impact of training subsidies and their financing on skill acquisition and start-ups of new private firms, and show that the positive effect of subsidies would be mostly offset by high wage taxes. Shifting financing from wage to consumption taxes would improve incentives for workers’ training and firm start-ups, while relying more on income taxes could reduce the income gap between workers and entrepreneurs.     

A French model of craft training: its strategic relevance and recruitment issues for a UK firm

This paper is a study of the recruitment to the first version of the International Journeyman Programme (IJP), a project to recruit and train young workers from the north-east of England for a craft and technician training programme in engineering organized by a French trade guild, Les Compagnons du Devoir (CdD). The initial version of the project was unsuccessful and the paper highlights the role played by UK state agencies and institutions in the recruitment process in the project's lack of success. The paper examines the strategic relevance of a model of French craft training to a UK firm, describes that system of training and development, and analyses the recruitment difficulties faced by the IJP organizers when they attempted to launch the programme. The study finds that key elements of the UK VET system have severe problems in delivering high-skills training, and that there are in-built structural barriers that limit the extent to which such training can be easily imported.     

Long-term employment relationships in the early twentieth century: Evidence from personnel data

This paper utilizes a new panel data set of workers employed by the Canadian Pacific Railway between 1904 and 1929 to analyse the incidence of long-term employment and reasons for changes in job durations after World War I. The hazard function estimates indicate that individuals have only a small probability of staying for more than ten years at the firm, although at any point in time long-term workers constitute a sizable fraction of employees. Increasing post-war spell lengths reflect the changing composition of the workforce rather than differences in macro-economic conditions or changes in employment relationships. Specific human capital and job matching were also important: Long-term employees were shielded from both firm-specific and economy-wide downturns.     

The efficiency of training and hiring with intrafirm bargaining

This paper demonstrates that firms hire and train workers efficiently in a matching and intrafirm bargaining economy when the Hosios condition holds and returns to scale are constant. This conclusion stands in contrast to the prevailing view that training costs are a source of inefficiency in imperfect labor markets. The efficiency of the competitive economy relies on the ability of large firms to take into account the negative impact of the training rate on the wages negotiated inside the firm through intrafirm bargaining: untrained workers accept a wage reduction in compensation for potential training that is accessible only following employment. This intrafirm bargaining process solves efficiency problems associated with training costs that would otherwise lead to inefficient hiring and training decisions. This conclusion holds true for both specific and general human capital.     

The impact of minimum wages on wages,work and poverty in Nicaragua

In this paper we use an individual- and household-level panel data set to study the impact of changes in legal minimum wages on a host of labor market outcomes including: a) wages and employment, b) transitions of workers across jobs (in the covered and uncovered sectors) and employment status (unemployment and out of the labor force), and c) transitions into and out of poverty. We find that changes in the legal minimum wage affect only those workers whose initial wage (before the change in minimum wages) is close to the minimum. For example, increases in the legal minimum wage lead to significant increases in the wages and decreases in employment of private covered sector workers who have wages within 20% of the minimum wage before the change, but have no significant impact on wages in other parts of the distribution. The estimates from the employment transition equations suggest that the decrease in covered private sector employment is due to a combination of layoffs and reductions in hiring. Most workers who lose their jobs in the covered private sector as a result of higher legal minimum wages leave the labor force or go into unpaid family work; a smaller proportion find work in the public sector. We find no evidence that these workers become unemployed.Our analysis of the relationship between the minimum wage and household income finds: a) increases in legal minimum wages increase the probability that a poor worker's family will move out of poverty, and b) increases in legal minimum wages are more likely to reduce the incidence of poverty and improve the transition from poor to non-poor if they impact the head of the household rather than the non-head; this is because the head of the household is less likely than a non-head to lose his/her covered sector employment due to a minimum wage increase and because those heads that do lose covered sector employment are more likely to go to another paying job than are non-heads (who are more likely to go into unpaid family work or leave the labor force).     

Channels through which Public Employment Services and Small Business Assistance Programmes Work*

Empirical evidence has found that public employment services (PES) and small business assistance (SBA) programmes are successful at getting the unemployed back to work. Policywise it is important to know which of these two programmes is more effective, for whom, and when. Using unusually rich survey data and matching methods, this study evaluates the relative effectiveness of PES and SBA for different subgroups in Romania in the late 1990s, where the outcome variables involve earnings, employment and unemployment in 2000–1 and early 2002. It finds that heterogeneity matters and that these programmes need to be tailored to the problem at hand.     

'More is not necessarily better': the relationship between the quantity and quality of training efforts

International comparisons indicate that, on average, Belgian companies spend less on training than their French, German and Dutch counterparts. Encouraging companies to commit to training has consequently been an important policy goal over the last few years. One notable aspect of the policy to encourage training efforts by companies is that the effort is always represented in terms of the resources invested (input), not in terms of the learning achieved (output) or the quality of training programmes (throughput). Government policy is aimed at increasing the level of investment in company training. One of the questions we wish to investigate is whether this input-oriented approach to the training issue is actually effective. Whether companies will succeed in raising human capital to ever-increasing levels may depend not only (and maybe not even chiefly) on the extent of financial investment in training. The investment level does not necessarily determine the quality of the training processes developed by companies. Therefore, this paper focuses on the following research questions: (1) to what extent do companies monitor the systematic development of sufficiently effective training processes? In other words, is qualitative under-investment an issue, alongside financial under-investment? (2) Is the level of financial investment in company training correlated to the quality of training processes? The empirical data confirm that a kind of 'qualitative' under-investment can be reported and that the relationship between the level of investment in training and the quality of the training programmes is weak.     

Noncompete agreements,training, and wage competition

We study the effects of noncompete agreements in an environment where firms invest in training junior workers. After obtaining employer-provided training, trained workers can choose whether to remain loyal to their initial employer or switch to the competing employer. We evaluate the effects of noncompete agreements on wages, employment, investment in training, production, profits, and total welfare. Firms earn higher profits and pay lower average wage when they require workers to sign noncompete agreements.     

城镇化进程中农民工继续教育的迫切意义

随着我国城镇化的不断推进,经济水平的提高,大批农民工从农村来到城市打工,而这批整体受教育程度低和劳动技能不高的劳动力,在城市的发展的领域日趋变窄,无法满足企业的用工需求,需要对进城后的农民工开展继续教育培训,从文化教育及职业技能方面开展教育培训,提升农民工的人力资本,从而使农民工更好的在城市生活发展。