A dynamic analysis of informal care and employment in England

This paper analyzes the dynamics in employment and informal care outcomes of women in England. To this end, we develop a dynamic model to describe pathways leading to a negative correlation between informal care and employment in a cross-section. The model allows for different types of caregiving, correlated permanent unobserved heterogeneity and initial sorting. The model is estimated on data from 6 waves of the BHPS 2000–2005. Our findings suggest modest feedback effects. We find a negative effect of co-residential caregiving on future employment and a negative effect of employment on future co-residential and extra-residential caregiving. We also find evidence of positive state-dependence in caregiving although most of the persistence in such activities is related to unobserved heterogeneity rather than state-dependence.     

Mobility,poverty and well-being among the informally employed in Bosnia and Herzegovina

We analyse informal sector employment in Bosnia and Herzegovina (BH), using panel data from the living standards measurement studies. We derive four main conclusions. First, there is significant labour market mobility in BH. Second, those in informal jobs are much more likely to suffer from poverty than formally employed people are. Third, earnings inequality is more pronounced in the informal sector than elsewhere. Fourth, the informally employed report lower levels of life satisfaction compared to most other labour market states. We conclude that, while the informal sector helps people cope, the formal sector provides better prospects for prosperity and well-being.     

State dependence in youth labor market experiences, and the evaluation of policy interventions

We investigate the extent and type of state dependence in labor market outcomes for young low-skilled Australians. Our model allows for three labor force states, employment, unemployment and out of the labor force, and for observed and unobserved heterogeneity. We find evidence of occurrence dependence, but no lagged duration dependence. A past employment spell increases the probability of employment in the future, but the length of the spell does not matter. A past spell of unemployment undoes the positive benefits from a spell in employment. Interpretations of these effects and implications for labor market policies are discussed.     

Formal sector job growth and women’s labor sector participation : The case of Mexico

This paper looks at the effects of demand and supply on the determinants of labor sector (school, home work, informal, and formal) participation between Torreon and Tijuana, Mexico for married and single women. Comparisons between the two cities are used to capture differences in labor demand. Torreon is a traditional city with an agri-industrial base and Tijuana is a border city with large export processing (maquiladora) and tourism sectors, both of which demand female labor. Factors influencing labor supply include both individual and household characteristics. Married women, given the strong cultural tradition of working in the home, do not significantly increase their paid labor participation with higher labor demand or changing characteristics of the household. Personal characteristics have the greatest impact on labor sector participation. Single women do, however, increase their formal sector participation with additional employment opportunities and respond to household needs by moving in and out of the paid labor market. Results indicate that increases in labor demand in Mexico from the NAFTA could expand formal sector labor force participation of single women.     

THE IMPACT OF LABOR MARKET REGULATION ON EMPLOYMENT IN LOW‐INCOME COUNTRIES: A META‐ANALYSIS

Controversy over labor market policy often centers on achieving a balance between preventing worker exploitation, and avoiding loss of productivity or employment through excessive regulation. Although the literature documenting the impact of labor market regulation on employment is extensive, there is a dearth of evidence on the impact of such policies in low‐income countries (LICs). Since it is easier for workers, especially women, to slip into the informal sector in LICs, regulations are likely to have stronger impacts on formal employment in these countries (but lower impacts on unemployment). We systematically reviewed available research from countries that are, or were until recently, LICs. Most studies document that more stringent labor regulations are associated with lower formal sector employment and higher informal sector employment. We also conducted a metaregression analysis of the impact of minimum wages on formal and informal employment. After controlling for publication bias, higher minimum wages are associated with lower formal employment and a higher share of informal workers.     

Informality in developing economies: Regulation and fiscal policies

This paper proposes a unified theoretical framework where formal and informal firms coexist and face the same type of product and labor market imperfections: they have monopoly power in the goods market, they are subject to matching frictions in the labor market, and wages are determined by bargaining between large firms and their workers, through either individual or collective bargaining. Our model matches the main stylized facts on informality for developing countries and appears to be a good candidate for policy analysis. In this framework, we study the impact on informality, wages and unemployment of policies that may be used to reduce informality. We consider changes in product market regulation (PMR) and in two types of fiscal policies, labor taxes and formality enforcement. We find that lessening PMR decreases informality and unemployment simultaneously, indicating that there is not necessarily a tradeoff between informality and unemployment. The tradeoff appears when fiscal policies are used, though. Moreover, the impacts of PMR on unemployment and on wages are larger under collective than individual bargaining. With respect to wage inequality, lessening PMR reduces it, while lower taxes tend to increase the formal sector wage premium.     

Protestantism, Labor Force Participation, and Employment Across Countries

A bstract .   Using data from 80 countries, this article analyzes whether Protestant religion affects labor market outcomes. Controlling for the impact of labor market regulations, business regulations, the tax burden, the business cycle, the level of economic development, demographic and geographical conditions, wars, and the transition from planned to market economy as well as unobserved country and year effects, we find that countries in which the largest portion of the population practices Protestant religion have substantially higher labor force participation and employment rates, particularly among women. We obtain the same result for a subgroup of 19 industrial countries for which we have better data to control for the impact of labor market institutions and business cycle fluctuations.     

“Handle with care”: The mediating role of schedule i‐deals in the relationship between supervisors' own caregiving responsibilities and employee outcomes

Drawing on theories of perspective‐taking and i‐deals, this study explores the impact of supervisors' own caregiving responsibilities for elders and parental status on subordinates' schedule i‐deals. Moreover, we investigate the extent to which schedule i‐deals mediate the relationship between supervisors' caregiving responsibilities and two employee outcomes: satisfaction with work–family balance and turnover intentions. Using a sample of 520 dyads involving 137 supervisors and 520 employees, the results of multilevel analysis show that supervisors' caregiving responsibilities for elders is positively related to schedule i‐deals, but their parental status is not. The findings also show that schedule i‐deals mediate the effect of supervisors' caregiving responsibilities for elders on subordinates' satisfaction with work–family balance and turnover intentions. This research contributes to the i‐deals' literature by focusing on the role of managers' own caregiving responsibilities in facilitating the provision of schedule i‐deals to their subordinates and by exploring the consequences of schedule i‐deals to gain an understanding of the mutually beneficial nature of such deals. From a practical point of view, supervisors and HR departments might utilise schedule i‐deals to drive desirable employee outcomes, in particular their caregiving responsibilities, and to engender a family‐supportive organisational culture.     

城市扩张、土地财政与农村剩余劳动力转移——来自中国281个地级市的经验证据

本文系统分析城市扩张、土地财政依赖对农村剩余劳动力转移的影响机制,并针对中国281个城市的面板数据,综合运用GMM估计和面板门槛效应模型,考察城市扩张和土地财政依赖对农村剩余劳动力转移的影响效应。结果显示:城市扩张对农村剩余劳动力转移的影响主要呈现推动作用,且可能表现出倒U型趋势。以公共服务供给水平和工资水平作为门槛变量,城市扩张对农村剩余劳动力转移的影响存在门槛效应;土地财政依赖则不利于农村剩余劳动力转移,且城市扩张与土地财政依赖对农村剩余劳动力转移的影响存在异质性。同时,城市扩张与土地财政依赖的交互项系数显著为正,表明在与土地财政互动的过程中,城市扩张推动农村剩余劳动力转移的效用被不断削弱。     

Combining work and informal care: the importance of caring organisations

Population ageing and rising costs of long‐term care mean that organisations will be confronted in the future with a growing number of employees who combine paid work with providing informal care to a relative or non‐kin. Combining work and informal care successfully partly depends on job and care‐related features, but more information is needed on the importance of organisational aspects in this regard. The impact of organisational support on work outcomes (work–care balance and perceived need for job adaptations) was studied among 1,991 employed informal caregivers in 50 different organisations. Multilevel logistic regression analyses revealed that a heavy care burden decreased the odds of combining work and care successfully. Caregivers who felt supported by colleagues and supervisors, and who worked in supportive organisations had higher odds of good work outcomes. The findings imply that organisations should be explicit about their concern for informal caregivers and be particularly aware of colleagues with heavy care responsibilities.     

The magic of the new: How job changes affect job satisfaction

We investigate a crucial event for job satisfaction: changing one's workplace. For representative German panel data, we show that the reason why the previous employment ended is strongly linked to satisfaction with the new job. Workers initiating a change of employer experience extraordinarily high job satisfaction, though in the short term only. To investigate causality, we exploit the event of plant closure as an exogenous trigger of job switching. In this case, we find no significantly positive effect of job changes on job satisfaction. Our findings complement research on workers’ well‐being and concern labor market policies and human resource management.     

Housing tenure and labor market impacts: The search goes on

We develop two search-theoretic models emphasizing firm entry to examine the Oswald hypothesis, the idea that homeownership is linked to inferior labor market outcomes, and compare their predictions to three extant theories. The five models have surprisingly different predictions about the labor market at both the aggregate and micro levels. Using a suitable instrumental variable strategy, we estimate both micro and aggregate level regression models of wages and unemployment and compare the estimates to those predictions. We find that while homeowners are less likely to be unemployed, they also have lower wages, all else equal, compared to renters. In addition, higher regional homeownership rates are associated with a greater probability of individual worker unemployment and higher wages. The outcome of a horserace between our new search-theoretic models is mixed—the wage-posting model predicts observed unemployment impacts while a bargaining variant does a better job explaining observed wages and aggregate labor market outcomes. Overall, we conclude that firm behavior is important for understanding the labor market impacts of homeownership. Because this is the case, regional homeownership rates are not good instruments for individual tenure choice in empirical work. And while individual homeowners may have inferior labor market outcomes as compared to renters, from the viewpoint of society, higher homeownership rates may result in greater job creation and overall production, among other benefits.     

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).     

The effect of household appliances on female labor force participation: Evidence from microdata

We estimate the effect of household appliance ownership on the labor force participation rate of married women using micro-level data from the 1960 and 1970 U.S. Censuses. In order to identify the causal effect of home appliance ownership on married women's labor force participation rates, our empirical strategy exploits both time-series and cross-sectional variation in these two variables. To control for endogeneity, we instrument a married woman's ownership of an appliance by the average ownership rate for that appliance among single women living in the same U.S. state. Single women's labor force participation rates did not increase between 1960 and 1970. We find evidence in support of the hypothesis that the diffusion of household appliances contributed to the increase in married women's labor force participation rates during the 1960's.     

德美两国企业参与管理的对比研究

参与式管理是当代资本主义企业的重要管理方式之一,其兴起的原因包括三个方面:一是企业生产组织形式由福特制到大规模定制的转换;二是知识工人地位的提高;三是劳动力管理思想的转变。参与式管理提高了工人的满意度和生产效率,缓和了劳资之间的矛盾。德国的参与式管理建立在国家立法基础上,而美国则以非正式制度和个人主义为特征。     

Structural estimation of stock market participation costs

This paper develops and estimates a dynamic model of stock market participation, where consumers' decisions regarding stock market participation are influenced by participation costs. The practical significance of the participation costs is considered as being a channel through which financial education programs can affect consumers' investment decisions. Using household data from the Panel Study of Income Dynamics, I estimate the magnitude of the participation cost, allowing for individual heterogeneity in it. The results show the average stock market participation cost is about 4–6% of labor income; however, it varies substantially over consumers' life. The model successfully predicts the level of the observed participation rate and the increasing pattern of stock market participation over the consumers' life cycle.     

The effects of flexible work practices on employee attitudes: evidence from a large-scale panel study in Germany

We explore the effects of flexible work practices (FWPs) on the work attitudes (job satisfaction and turnover intention) and non-work attitudes (leisure satisfaction and perceived health) of employees based on representative large-scale German panel data. Because unobserved individual characteristics can easily act as confounders, we estimate both pooled ordinary least squares models and individual fixed-effects models. Controlling for time-constant individual heterogeneity, we find that the three considered FWPs – flexitime, sabbaticals, and working from home – significantly increase job satisfaction and that sabbaticals and working from home (but not flexitime) significantly decrease turnover intention. In addition, sabbaticals but not flexitime or working from home significantly increase leisure satisfaction. The effects of FWPs on health are mostly weak and statistically insignificant. Models that do not control for such individual heterogeneity either underestimate the positive effects of FWPs or find detrimental effects. Our findings indicate that organizations in Germany can increase job satisfaction and decrease employee turnover intention by offering FWPs.     

Comparative analysis of labor market dynamics using Markov processes: An application to informality

This paper discusses a set of statistics for examining labor market dynamics in developing countries and offers a simple search model that informs their interpretation. It then employs panel data from Argentina, Brazil and Mexico to generate a set of preliminary stylized facts about patterns of sectoral transition and duration. Finally, it nests two competing views of the informal sector within the model and uses variation in the statistics across age and the business cycle to help discriminate between them. The results suggest that a substantial part of the informal sector, particularly the self-employed, corresponds to voluntary entry, although informal salaried work may correspond more closely to the standard queuing view, especially for younger workers.     

Can economic development boost the active female labor force?

This study explores whether the female labor force participation rate (FLFPR) can promote economic development in Asian countries. We apply the method of bootstrap panel Granger causality in order to consider the cross-sectional dependency and heterogeneity to detect specific patterns of the interactive relationships between the two variables. The estimation results point out that the interaction patterns vary across countries, which is consistent with the U-shaped hypothesis. Specifically, when the economy develops, FLFPR declines in Vietnam and India, whereas economic development promotes the FLFPR in Korea, Malaysia, Singapore and Thailand. More specifically, when GDP per capita lies at a relatively low level, the income effect dominates the substitution effect, resulting into the FLFPR changing in opposite direction. Nevertheless, the substitution effect holds the dominant position when the GDP per capita reaches a high level. The increase of FLFPR is accompanied by economic development due to availability of more jobs and increasing level of education. Therefore, policy makers should formulate plans in order to benefit from the potential of the female labor force by stimulating economic development.

     

Social security and the labor supply of older married couples

This paper provides estimates of the impact of social security benefits on the labor force behavior of older married couples in the United States, with the ‘spouse benefit’ provision receiving particular attention. The empirical results using data from the Retirement History Survey show that the spouse benefit provision has a moderately small negative impact on labor force participation by older married women and a small positive impact on the labor force participation of older married men. The results are used to evaluate the potential labor supply impact of a proposal to eliminate spouse benefits and replace them with earnings sharing.