An Equity-based Redefinition of Underemployment and Unemployment and Some Measurements

An attempt is made in this article to redefine underemployment and unemployment without making reference to an excess supply of labor or any causal mechanism of unemployment. Instead, underemployment and unemployment are defined in terms of equity which draws upon the individual's preferences. A specific proposal is that underemployment be defined by the presence of contribution inequity relative to at least half the persons employed in a field that the underemployed person might prefer to move into. Empirically, most recent survey data on preferences for contingent and other nontraditional employment are used to illustrate the application of the concept. The major finding is that nearly 10 million Americans in the nontraditional workforce are underemployed.     

A microfoundation for increasing returns in human capital accumulation and the under-participation trap

This paper considers educational investment, wages and hours of market work in an imperfectly competitive labour market with heterogeneous workers and home production. It investigates the degree to which there might be both underemployment in the labour market and underinvestment in education. A central insight is that the ex post participation decision of workers endogeneously generates increasing marginal returns to education. Although equilibrium implies underinvestment in education, optimal policy is not to subsidise education. Instead it is to subsidise labour market participation which we argue might be efficiently targeted as state-provided childcare support.     

Occupational sex segregation in the UK 1979–89: the role of part-time employment

In this article, the pattern of occupational segregation by sex in the UK between 1979 and 1989 is explored through the decomposition of the new Karmel Maclachlan index. Over the upturn, 1983–89, integration of the sexes, as measured by the Composition Effect occurred faster for full-time employment than total (full-time and part-time) employment. On the other hand, integration, in general, proceeded more slowly over the downturn of 1979–83 but total employment showed a more rapid rate of desegregation than full-time employment. Further analysis of the index, based on notional redistributions of part-time and full-time employment, confirms that part-time employment appears to be disproportionately responsible for the overall level of occupational sex segregation and to inhibit its decline over the upswing. These results are attributed to the different labour supply behaviour of males and females and the propensity of employers to treat part-time employees as a flexible reserve. Policies are outlined to counteract both the unequal treatment of part-time workers, particularly women, and the allocative inefficiency caused by the growth of part-time employment, relative to full-time employment.     

The impact of Sunday shopping on employment and hours of work in the retail industry: Evidence from Canada

Between 1980 and 1998 every Canadian province passed legislation that in some way relaxed restrictions on Sunday shopping. This study exploits the variation in deregulation dates between provinces to identify how retail employers adjust employment and hours of work when deciding to open on Sundays. A major complication of this analysis is to first determine for which provinces the deregulation dates are useful indicators of increases in Sunday store openings. This paper uses a unique trading-day regression approach to identify these provinces and then uses aggregate data from the selected provinces to estimate a simple dynamic labour demand model that allows employment and hours to be imperfect substitutes in production. The results suggest that retailers’ needs for Sunday labour were disproportionately satisfied through increases in employment levels. Comparison of the estimates at three levels of the retail industry suggests that the employment and hours gains were larger among general merchandise stores than among more specialized retail establishments and relatively modest at the aggregate retail industry level. In addition, despite evidence of an immediate shortfall in the employment level below the long-run optimal level, the results suggest that firms were unable to compensate by temporarily increasing the hours of their existing employees.     

Reworking the Wage Curve: Exploring the consistency of the model across time,space and demographic group

This paper extends Blanchflower & Oswald's (1994) work on the wage curve to the 50 largest metropolitan areas in the United States. The wage curve is more elastic in US metropolitan areas than prior research shows for the nation as a whole, and the wage curve varies over the business cycle, becoming more elastic in periods of higher unemployment. The most striking finding is that black workers have a more elastic wage curve than do white workers. Estimating the wage curve with the non-employment rate, a measure of underemployment, shows elasticities that are substantially higher than for wage curves estimated with the unemployment rate. This trend further increases the negative effects on pay for blacks, who are more likely than white workers to be underemployed.     

The Impact of Income Taxation on the Labor Supply of Part-time and Full-time Workers

This paper estimates the effect of income taxation on the labor supply of part-time and full-time workers in the United States. Using a model that incorporates the endogeneity of the net wage rate and the virtual income, and correcting for self-selection into part-time and full-time jobs, the results indicate that part-time workers are relatively more responsive to changes in income tax than full-time workers. Estimated wage elasticities are relatively larger for part-time than for full-time workers.The simulation results indicate that income tax has a disincentive effect on both part-time and full-time workers, with part-time and full-time workers reducing their labor supply by 0.87 and 0.58 hours, respectively, if a 5% tax is imposed. However, the percentage reduction in hours of work is very small, and a tax policy may have little effect on the labor supply of workers.The results seem to suggest that female and black part-time workers are more likely to drop out of the labor force at higher levels of income tax. It also tests the hypothesis that the labor supply behavior of parttime and full-time workers differs.The test results indicate that the determinants of the labor supply of part-time workers are different from those of full-time workers. It is noted that there is a significant difference between the labor supply of male part-time and female parttime workers, as well as between the black part-time and white part-time workers. In order to reduce voluntary unemployment in market activities among married females and blacks, the government can encourage part-time work by sponsoring legislation or instituting a scheme that will allow part-time workers to pay relatively less in payroll taxes.     

Hidden Unemployment in Estonia: Experience from the Early Years of Transition (1989‐1996)

The aim of this article is to develop and deepen the discussion on this topic and analyse the methods of measuring hidden unemployment. This is important for giving an adequate overview of the situation of the labour market in Estonia and the scope of hidden unemployment and its development in the transition period. The following tasks are set to achieve this aim: to estimate different components of hidden unemployment in Estonia and to analyse the factors that influence this phenomenon in Estonia and thence form policy conclusions. In the analysis data from the Estonian Labour Force Survey (ELFS 97) carried out in 1997 are examined. Three logit models were calculated (for unemployed, underemployed and discouraged persons). The most important findings were that there are no general factors which could influence open and hidden unemployment at the same time, and that the factors influencing the components of hidden unemployment differ—underemployment is probably influenced more by economic factors and discouragement more by psychological factors.     

Has the Affordable Care Act increased part-time employment?

We examine the impact of the Affordable Care Act (ACA) on part-time employment. Because the ACA’s employer health insurance mandate applies to individuals who work 30 or more hours per week, employers may try to avoid the mandate by cutting workers’ hours below the 30-hour threshold in order to avoid having to provide them with health insurance. Although the employer mandate only went into effect in 2015, many observers have argued that forward-looking employers began to shift towards a part-time workforce well in advance of the mandate. To test this hypothesis, we examine relative shifts across two categories of part-time workers (25–29 hours and 31–35 hours). We find some evidence of a shift from the 31–35-hour category into the 25–29-hour category after the passage of ACA in March 2010. However, that shift is not more pronounced among low-wage workers or among workers in industries and occupations most likely to be affected by the mandate. Thus, there is little evidence that the ACA has caused the shift across hours categories, or led to an increase in part-time employment. However, the ACA could cause a shift towards part-time work in the future as the mandate takes effect.     

How relative income affects work hours preferences

In this article, we look at explanations for why people want to change their working hours. We focus on the role of income and differentiate between the effect of household income, personal income and self-perceived relative income. Using Flemish data on 1435 workers, we perform binary logistic regressions in which we compare those who are over- or underemployed with those who are currently working their preferred number of hours. Our results show that the desire to work fewer hours is mostly related to a bad work–life balance, while the wish to increase working hours is associated with relative income rather than absolute income. Based on our findings we recommend governments to not only focus on increasing flexibility at the individual level but to also consider these positional effects by taking measures (e.g. decreasing the duration of the standard working week) at the population level.     

Child labor and schooling responses to anticipated income in South Africa

Forward looking, unconstrained households make child labor and schooling decisions considering their permanent income and weighing the relative returns to child time in various potential activities. The timing of anticipated changes in income should have no effect on child labor and schooling in a setting where households can borrow against permanent income. However, this study documents large increases in schooling attendance and declines in total hours worked when black South African families become eligible for fully anticipatable social pension income. As an explanation, the data are most consistent with liquidity constraints for black elder males forcing rural families into less schooling for boys than they would choose absent the constraint, perhaps because of schooling costs.     

SIX WAYS TO LEAVE UNEMPLOYMENT

This paper uses a unique Portuguese dataset to examine the effect of access to unemployment benefits (UBs) and their maximum potential duration on escape rates from unemployment. In examining the time profile of transitions out of unemployment, the principal contributions of the paper are twofold. First, it provides a detailed state space of potential outcomes: open-ended employment, fixed-term contracts, part-time work, government-provided jobs, self employment, and labour force withdrawal. Second, it is able to exploit major exogenous discontinuities in the maximum duration of unemployment benefits to identify disincentive effects. While confirming strong disincentive effects, it is shown that use of an aggregate hazard function regression model compounds very different and even contradictory effects of the determinants of unemployment.     

The Contribution of Employment Separation to Teenage Unemployment*

In this paper we analyze the relationship between labour market flows and the unemployment rate of teenagers compared to males aged 25–54 years. For 1979–80 teenagers separated from employment at approximately five times the rate of adult males and this was the principal factor associated with their high rate of unemployment. Job-finding success from unemployment and from outside the labour force is approximately the same for each labour market group. A special feature is the analysis of gross flows between full-time and part-time employment. Labour market flows involving part-time employment account for little of the unemployment rate difference.     

Does Raising the Minimum Wage Help the Poor?*

What is the impact of raising the minimum wage on family incomes? Using data from the 1994–1995 to 2002–2003 Survey of Income and Housing, the characteristics of low-wage workers are analysed. Those who earn near-minimum wages are disproportionately female, unmarried and young, without postschool qualifications and overseas born. About one-third of near-minimum-wage workers are the sole worker in their household. Due to low labour force participation rates in the poorest households, minimum-wage workers are most likely to be in middle-income households. Under plausible parameters for the effect of minimum wages on hourly wages and employment, it appears unlikely that raising the minimum wage will significantly lower family income inequality.     

Part-time work, school success and school leaving

In this paper, we analyse part-time employment of teenagers still in full-time education, their academic performance, and their school leaving decisions. Our estimation strategy takes account of the possible interdependencies of these events and distinguishes between two alternative states to full time education: entering the labour force full time and going on to further training. We model this decision in a flexible way. Our analysis is based on data from the UK National Child Development Study, which has an unusually rich set of variables on school and parental characteristics. Our main finding is that working part time while in full-time education has only small adverse effects on exam performance for females, and no effects for males. The effect of part-time work on the decision to stay on at school is also negative, but small, and marginally significant for males, but not for females. Other important determinants of exam success as well as the continuation decision are parental ambitions about the child’s future academic career.     

Hidden underemployment among Irish farm holders 2002–2011

This article examines the scale of hidden underemployment on Irish farms from 2002 to 2011. We provide a measure of hidden underemployment that is not captured by the national-level statistics. Hidden underemployment can be attributed to a number of factors relating to inadequate employment situations as described at the 16th International Conference of Labour Statisticians such as low productivity, the poor utilization of skills and other factors specific to agriculture. We place particular attention upon the potential role of off-farm labour supply in solving the underemployment problem. We utilize a two-stage residual inclusion model and a random effects probit model to examine the forces behind farm underemployment. We utilize a fixed effects model to examine the factors driving the severity of farm underemployment. Our findings suggest that instances of hidden underemployment increased between 2002 and 2011. Hidden underemployment appears to be a stubborn problem and is related to the absence of off-farm employment, low yield, livestock intensity and smaller than average farm size in the sheep and drystock cattle sectors in particular.     

Occupations and the evolution of gender differences in intergenerational socioeconomic mobility

This paper analyzes intergenerational mobility experiences of daughters and sons with respect to their fathers’ occupational status and documents changes in gender differences over time. While women have been in occupations with lower overall earnings potential, men are more likely to be in occupations characterized by long hours and low returns. The mobility gap in earnings has been closing and a mobility advantage with respect to education has been emerging.     

未充分就业感知对抗令创新的影响

抗令创新已引起越来越多的学者关注,然而关于其前因变量的探究仍处于初步阶段。基于创造力交互理论,从个体及团队两个层面分别选取领导成员交换、领导成员交换差异为调节变量,构建未充分就业感知对抗令创新的作用模型。运用HLM等软件分析46个团队220名员工数据,并检验相关假设。研究结果表明：①未充分就业感知与抗令创新呈正相关关系;②领导成员交换与抗令创新呈负相关关系;③领导成员交换调节未充分就业感知与抗令创新的正向关系,即随着领导成员交换水平提升,未充分就业感知与抗令创新正向关系越弱;④领导成员交换差异与抗令创新呈正向关系。     

Definition of full-time and part-time employment,and distributional assumptions: the implications for the estimated full-time and part-time wage equations

This paper demonstrates that rejecting the standard definition of full-time and part-time workers, the estimated number of hours that an individual is likely to work as a full-time worker is a function of the type of distribution one assumes about the error term in the wage equation. Adopting a switching regression model with unknown sample selection, we have found that the normality assumption generates higher hours for full-timers in comparison with the non-normal distributions. We also noted that regardless of the distribution assumed, the hours differ from one industry to another. The implication is that the standard definition of full-time and part-time worker may not be appropriate for all firms irrespective of the distribution assumed. The paper also shows the sensitivity of parameter estimates to the distributional assumptions about the error term in the wage equation. The results indicate that the normal distribution wage equation estimates are relatively larger than the Weibull and exponential distributions. This finding is particularly important because such differences in estimated coefficients may have a direct wage influence on the wage gap between full-time and part-time workers across distributions.     

WAGES,HOURS OF WORK AND JOB SATISFACTION OF RETIREMENT‐AGE WORKERS*

I analyse, theoretically and empirically, the effects of pension benefits, family conditions and the personal characteristics of older individuals on their labour supply, wages, hours worked and job satisfaction, in the framework of the Nash bargaining condition whereby an older worker and a firm bargain over employment conditions such as wages, hours of work and job investment. It is stressed that as workers become older they tend to give greater priority to the number of hours worked, work environment and type of job than to wages, and try to improve these through job investment, even at the cost of lower wages.     

After work shopping? Employment effects of a deregulation of shop opening hours in the German retail sector

This study investigates the impact of a deregulation of shop opening laws on employment in the German retail sector. Exploiting the gradual change in the opening times of shops across states and using data from the German Socio-Economic Panel, difference-in-differences estimates indicate an average increase in the employment probability, driven by a rise in the likelihood of working marginal part-time hours. Workers in small firms are likely to experience a reduction of their propensity to work. For individuals facing high family-related, supply-side constraints, the change in shop opening hours has opposing effects on employment — positive on lower and negative on upper parts of the hours distribution. Overall, the deregulation is estimated to have raised the likelihood of working fewer hours than desired by the workers.