Does immigration increase labour market flexibility?

The question we investigate empirically in this article is whether immigration makes the labour supply in the receiving country more responsive to regional differences in economic opportunities. The main merit of the paper is that we examine three stages in the regional mobility of refugees and labour immigrants: First, the settlement pattern of newly arrived immigrants, second, their subsequent mobility between regions and, third, their eventual exit from the regional labour market to abroad. The analyses apply to immigrants who arrived in Norway from 1995 to 2004. In all three stages, mobility is investigated with regard to its responsiveness to regional differences in wages and unemployment. The main finding is that, in all three stages, the geographical mobility of immigrants is sensitive to regional economic opportunities. In that sense, immigrants do “grease the wheels” of the labour markets, through all the three stages of mobility. The most robust results are found for regional unemployment differences. With regard to natives, we generally do not find any strong evidence for “greasing the wheels” effects.     

External and internal labour flexibility in Spain: a substitute or complementary effect on firm performance?

The contingent perspective in strategic human resource management maintains that it is necessary to observe the interaction between human resource practices by encouraging external and internal labour flexibility. An issue still to be resolved is whether this fit leads to a complementary or substitute effect on firm performance. In order to contribute to this debate, we examine how the relationship between external labour flexibility and firm performance is moderated by the degree of internal labour flexibility. To do this, we use the Survey on Business Strategies of the Ministry of Industry, Tourism and Trade on a sample of 1,403 Spanish industrial firms. The results show the existence of a substitute effect between the two types of labour flexibility. Using them simultaneously does not lead to greater benefits for firms.     

Symposium: Youth labour market and the “Great Recession”

The financial crisis of 2007–2008, followed by the “Great Recession” and the additional sovereign debt crisis in some peripheral countries of the Eurozone, resulted in huge and persistent effects on European youth labour markets. Theoretical and empirical investigations on this topic are still scarce compared with the importance of the topic and the consequent economic, social and policy implications. This paper consists of a very short introduction to a symposium that contributes to filling that gap. A multifaceted picture emerges with major policy implications for the three levels of government (European, national and regional/local) in order to reduce youth unemployment and the NEET phenomenon.     

Should I stay or should I go? The effect of gender,education and unemployment on labour market transitions

This paper re-examines the turnover behaviour of men and women using panel data from six European countries. It makes a distinction between job-to-job (JJ) and job-to-non-employment (JNE) transitions, and explores the role that education and unemployment play in gender differences regarding these mobility patterns. Low educated women have lower JJ transition probabilities but are more likely to exit to non-employment compared to the other groups, high-educated women and men of all educational levels. Furthermore, unemployment reduces the JJ turnover of male and female workers of all educational levels. There is a pro-cyclical response in the JNE transitions of the less-educated males and a counter-cyclical response in the JNE transitions of the less-educated females. Finally, there are remarkable similarities in labour market mobility across countries, although there are various institutional and other labour market differences.     

Impact of the Great Recession on unemployed and NEET individuals’ labour market transitions in Ireland

The impact that the Great Recession has had on countries’ labour markets has been well documented. In Ireland, the contraction in economic activity that took place resulted in the country's overall unemployment rate increasing from 4.6% in 2006 to 15% in 2012. The country's youth unemployment rate rose from 9.9% to 33% over the same time period, while the proportion of NEETs increased from 10.1% in 2006 to 18.7% in 2012. Policymakers are aware of the unemployment rates of young and prime-aged people as well as the NEETs rate. However, little is known about these groups’ profiles, whether their profiles have changed since the recession and also their labour market transition patterns pre and post the Great Recession. Given the importance of this information in the design of effective activation measures to assist unemployed and NEET individuals, this paper examines each of these issues in turn. Overall, the study found for all three groups examined that the rate of transition to employment fell dramatically between 2006 and 2011. The analysis showed that the drop in the groups’ transition rates was not due to changes in the underlying sub-group population structures but to changes in the external environment that resulted in the impact of possessing certain characteristics changing over the recession. For example, education and nationality have become more important in finding a job in Ireland over the course of the recession, while there has been a fall in the scarring impact of unemployment durations.     

Are the effects of minimum wage on the labour market the same across countries? A meta-analysis spanning a century

The effects of the minimum wage (MW) on the labour market have been studied for almost a century, but the results remain inconsistent. To review what is known until now, a global, multilingual database of 588 articles on MW effects is constructed spanning more than a century, from 1900 to 2020. Most of the studies belong to developed countries, and less than a third come from developing countries. The most researched subject during the period under review is the impact of the MW on employment, but the evidence is mixed independently of the country studied. Consequently, it is only possible to perform a meta-regression to suitably evaluate the impact of the MW on employment according to the number of studies collected on this topic. The meta-regression model is useful to explain the reasons for these differences. For this purpose, recently developed meta-analysis methods are implemented distinguishing between developed and developing countries. To the best of our knowledge, this is the first meta-analysis that reviews articles on the effect of MW without limits on the analysis period, the variables relative to the labour market or the countries under consideration. The results show a negative publication bias for developed countries but not for developing countries. The impact of the MW on employment is negative in both groups, adjusting for that bias. This adverse effect is small but robust. Characteristics related to the control variables, the demographic groups concerned, the methods implemented and the inclusion of local fixed effects, trend or time dummies account for the estimated employment effect. Public policy recommendations are proposed based on the studies reviewed.     

Job Evaluation and High Performance Work Practices: Compatible or Conflictual?

It can be argued that job evaluation and a high performance work strategy are either conflictual or compatible. On the one hand, job evaluation might be expected to introduce a greater degree of rigidity and top-down orientation to the pay and job structure, potentially yielding a conflict with the flexibility and employee involvement inherent in the high performance approach. On the other hand, job evaluation can be important in generating a feeling of equity in the workplace and thereby in promoting the high level of trust and commitment on which the success of the high performance strategy is seen to depend.     

‘Taking on almost everyone?’ Migrant and employer recruitment strategies in a booming labour market

This paper explores the recruitment strategies of employers in the Irish Celtic Tiger boom labour market. It explores Irish employers' turn towards immigrants rather than pursuing other strategies such as raising productivity or mobilising alternative sources of labour. It demonstrates that during the boom years a more casualised approach to recruitment was favoured, privileging soft skills and competencies above credentialised skills. Immigrants became the employees of choice, not least because of issues of costs and obedience, but also because they brought new skills, in particular soft skills. Indeed, employers in some sectors developed a categorical preference for migrant workers as they recruited for attitude, work ethic and potential.     

Europe: single market or political union?

The choice is between single market and political union over-simplified. Even an effective single market requires some political integration. So too does the management of a single currency, advantageous in itself. Neither requires a 'European economic government.' Beyond this, the peoples of Europe increasingly question the need for further supra-nationalism.'Political union,' in the form which frightens people, will not happen. Britain must play a full part in shaping the EU and its unique institutional structures, and prepare to join the euro-zone as soon as sensibly possible.     

Price competition in the spatial real estate market: allies or rivals?

This paper examines whether real estate firms can avoid price competition when properties in the vicinity are priced by allies. An oligopoly model with differentiated products generally suggests that real estate firms engage in price competition with their spatially closest rivals. Yet, they can raise property prices when the market share of their allies increases. To test this prediction, a spatial autoregressive model with spatial autoregressive disturbances, including a share of allies in the vicinity, is estimated using data on the prices of residential condos in central Tokyo, Japan. The model prediction is supported by the empirical results. In the data set, the magnitude of the market share on property prices increases with the expansion of the size of the spatial market.     

Is the division of labour limited by the extent of the market? Evidence from French cities

This paper provides supportive evidence to the notion that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce specialists occupations are over-represented in large cities. Using census data for French cities, we find strong empirical support for this prediction.     

Can media and text analytics provide insights into labour market conditions in China?

The official Chinese labour market indicators have been seen as problematic given their small cyclical movement and their only partial capture of the labour force. In our paper, we build a monthly Chinese labour market conditions index (LMCI) using text analytics applied to Mainland Chinese-language newspapers over the period from 2003 to 2017. We use a supervised machine learning approach by training a support vector machine classification model. The information content and the forecast ability of our LMCI are tested against official labour market activity measures in wage and credit growth estimations. Surprisingly, one of our findings is that the much-maligned official labour market indicators do contain information. However, their information content is not robust and, in many cases, our LMCI can provide forecasts that are significantly superior. Moreover, regional disaggregation of the LMCI illustrates that labour conditions in the export-oriented coastal region are sensitive to export growth, while those in inland regions are not. This suggests that text analytics can, indeed, be used to extract useful labour market information from Chinese newspaper articles.     

Scarred from the past or afraid of the future? Unemployment and job satisfaction across European labour markets

Previous research has shown that both past unemployment and anticipated future unemployment have a detrimental impact on employees' attitudes and behaviours, which may affect organisational performance. Surprisingly, however, very little is known about the relative impact of past unemployment compared with current job insecurity. Although it is possible that both effects operate simultaneously, this paper – focused on employees' job satisfaction and utilising a set of cross-sectional data derived from the European Social Survey 2006–2007 – reports on a strongly pronounced insecurity effect: anticipated unemployment substantially reduces employees' job satisfaction. Interestingly, inclusion of the perceived risk of future unemployment as a separate predictor variable in ordered probit regressions relegates the experience of past unemployment to a statistically insignificant coefficient and thus weakens the ‘scarring’ hypothesis. These results hold true even when several socio-demographic characteristics and proxies for individual personality traits are controlled. Implications for organisations and human resource practitioners and scope for future research endeavours conclude the analysis of the paper.     

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.     

Plugged In or Disconnected? A Model of the Effects of Technological Factors on Employee Job Embeddedness

Technology continues to play an ever‐increasing role in both our work and private lives. In parallel with this expanding reliance on technology has been a shift in how people now view their jobs. Therefore, the purpose of this article is to provide a theoretical model that bridges these two areas—technology and employee attitudes (more specifically, work‐related feelings of embeddedness). Within our model, we consider aspects of common work‐related technologies and key perceptual variables related to technology, and how both areas can influence embeddedness in one's job. We conclude the article by providing examples of how specific technologies that are commonly found in today's work environment may influence job embeddedness perceptions, and we discuss the implications of the model on both theory and practice. © 2015 Wiley Periodicals, Inc.     

Person or Job? Change in Person-Job Fit and Its Impact on Employee Work Attitudes over Time

Fit is generally conceptualized as a dynamic construct, but most research on person-environment fit has focused on fit in the current moment. We addressed this oversight by examining the dynamic relationships among person-job (PJ) fit, demand-ability (DA) fit, need-supply (NS) fit, and employee work attitudes over time using a three-wave survey design over a 12-month period. Results from 168 employees revealed that change in PJ fit was significantly related to changes in job satisfaction and affective organizational commitment. In addition, DA and NS fit changes were significantly and indirectly associated with job satisfaction and commitment changes through PJ fit change. We also found that increases in job demands and employee abilities significantly decreased DA fit, and increases in employee needs significantly decreased NS fit whereas increases in job supplies significantly increased NS fit. Finally, we examined age as an important moderator for employees’ reactions to PJ fit changes, and found that younger employees reacted more strongly to increases/decreases in PJ fit than did older employees.     

Public Management and Network Specificity: Effects of colleges’ ties with professional organizations on graduates’ labour market success and satisfaction

Abstract

Research on managerial networking in the public sector reports positive effects of network activity on performance. However, little is known about which network relations influence different aspects of performance. We argue that for specific organizational goals, organizations should direct their networking activities towards specific types of organizations. We explore how different types of network relations of Dutch colleges for nursing studies affect the performance of these colleges. We analyse the effect of ties with professional organizations on: (1) graduates’ program satisfaction, (2) graduates’ wages and (3) graduates’ employment (n = 1,484 graduates). Multilevel analyses show that colleges’ ties with professional organizations positively affect graduates’ wages and employment.