Permanent Jobs,Employment Protection,and Job Content

Using Programme for the International Assessment of Adult Competencies (PIAAC) data for twenty‐one countries, I study the impact of employment protection laws (EPL) on job content. I find that workers’ use of influence, reading, writing, planning, numeracy and information and computer technology skills, and their task discretion, were higher in permanent than in temporary jobs. Moreover, stricter EPL on permanent jobs raised the gap in job content for influence, reading, writing, and planning skills used in permanent jobs versus temporary jobs.     

Barriers or Opportunities? The Causes of Contingent and Part‐Time Work Among People with Disabilities

Why are workers with disabilities about twice as likely as nondisabled workers to be in contingent and part‐time jobs? This study finds that disability income program earnings limits and employer discrimination play relatively minor roles, whereas the primary explanation is health problems that make traditional full‐time jobs difficult or impossible for many people with disabilities. Despite the lower pay and other drawbacks of many nonstandard jobs, they enable many people with disabilities to work who otherwise would not be employed. Policy implications are discussed.     

Employment of People with Disabilities Following the ADA

Studies finding a negative effect of the Americans with Disabilities Act (ADA) on the employment of people with disabilities have used the work disability measure, which has several potential problems in measuring employment trends. Using Survey of Income and Program Participation (SIPP) data that permit alternative measures of disability, this study finds decreased employment among those reporting work disabilities in the first few years after the ADA was passed but increased employment when using a more probably appropriate measure of ADA coverage (functional and activity limitations that do not prevent work). State-by-state variation in labor market tightness is used to find that people with disabilities may have especially procyclical employment, but the contrary results in overall employment trends remain after accounting for labor market tightness. Given the problems in measuring who is covered by the ADA, there is reason to be cautious of both positive and negative findings.     

Capital investment and employment in the information sector

Estimation of the employment effects of changes in capital investment is a standard tool in public policy debates. Typically, such predictions are based on employment multipliers derived from Input–Output analysis. In this paper, we measure the employment effects of changes in capital investment in the U.S. information sector by econometrically estimating an “employment multiplier” from historical data. The estimated multiplier is 10 information sector jobs for each million dollars in expenditure, and perhaps 24 new jobs per million dollars invested across the entire economy. Employment multipliers derived from the Input–Output methodology average about 16 jobs per million, but the multiplier includes jobs outside the information sector. Including employment spillovers, our estimates suggest the multipliers from Input–Output models are plausible. We also note that information sector jobs have substantially higher median earnings than the private sector average, so the economic significance of changes in information sector employment are greater than might first appear. Our findings may be useful in debates over changes in industry regulation that could affect investment.     

Getting a Good Job: Mobility in a Segmented Labor Market

This study examines the process by which men in three ethnic neighborhoods of Boston move from secondary to primary employment in a segmented labor market. Workers who successfully make this transition belong to neighborhood-based social groups that have customary linkages to particular primary jobs. Members of such groups costlessly learn how to perceive and act in the labor market in ways that faciliate their entry into the primary sector. Workers' labor market perceptions reflect objective characteristics of the primary jobs to which their social groups are linked.     

Long‐Run Patterns of Labour Market Polarization: Evidence from German Micro Data

The past four decades have witnessed dramatic changes in the structure of employment. In particular, the rapid increase in computational power has led to large‐scale reductions in employment in jobs that can be described as intensive in routine tasks. These jobs have been shown to be concentrated in middle‐skill occupations. A large literature on labour market polarization characterizes and measures these processes at an aggregate level. However, to date, there is little information regarding the individual worker adjustment processes related to routine‐biased technological change. Using an administrative panel dataset for Germany, we follow workers over an extended period of time and provide evidence of both the short‐term adjustment process and medium‐run effects of routine task‐intensive job loss at an individual level. We initially demonstrate a marked, and steady, shift in employment away from routine, middle‐skill, occupations. In subsequent analysis, we demonstrate how exposure to jobs with higher routine task content is associated with a reduced likelihood of being in employment in both the short term (after one year) and medium term (five years). This employment penalty to routineness of work has increased over the past four decades. More generally, we demonstrate that routine task work is associated with reduced job stability and more likelihood of experiencing periods of unemployment. However, these negative effects of routine work appear to be concentrated in increased employment to employment, and employment to unemployment transitions rather than longer periods of unemployment.     

Transitions Out of Casual Employment: The Australian Experience

This paper uses longitudinal data to examine the extent to which casual employees, who account for almost 25 percent of all Australian employees, are able to access non‐casual jobs in the future, and to contrast their experiences with that of other labor market participants. A dynamic mixed multinomial logit model of labor market states is estimated which reveals high rates of mobility from casual employment into non‐casual employment. Among men, casual employees are found to be far more likely to make the transition into non‐casual employment than otherwise comparable unemployed job seekers. For women, however, this is not the case.     

Economic Implications of Public-Sector Comparable Worth: The Case of San Jose, California

This study evaluates the wage and employment effects of comparable worth in San Jose, California, one of the first cities in the United States to implement comparable worth wage adjustments. The empirical evidence indicates that, contrary to the predictions of many economists, females posted large employment gains in jobs targeted by comparable worth adjustments. Male employment in these jobs was stagnant. The increasing percentage female in the targeted jobs is attributable to the combined effects of comparable worth and pro-female hiring policies. No overall decrease in employment appears to have occurred in the city of San Jose, nor is there any indication of substitution from targeted to nontargeted jobs.     

Flexible Contract Workers in Inferior Jobs: Reappraising the Evidence

There is concern that the increase in flexible employment contracts witnessed in many OECD economies is evidence of a growth in low‐pay, low‐quality jobs. In practice, it is difficult to evaluate the ‘quality’ of flexible jobs. Previous research has primarily investigated objective measures of job quality such as wages and training or subjective measures such as job satisfaction. We jointly evaluate these elements of flexible employment contracts using a job quality index. Analysis of this index demonstrates that flexible jobs are of a lower quality. Differences in the subjective and objective assessment of factors like pay and hours are evident.     

A Decade of the Americans with Disabilities Act: Judicial Outcomes and Unresolved Problems*

A decade after its enactment, the Americans with Disabilities Act (ADA) has not resulted in the substantial employment gains for individuals with disabilities that its proponents had predicted. It also has not resulted in many legal victories for disabled individuals who have challenged alleged discriminatory actions by their employers. This article briefly reviews literature on disability and work and summarizes the data on the employment of individuals with disabilities. It addresses litigation trends prior to several significant U.S. Supreme Court rulings the ADA made in 1999 and compares them with litigation trends following the issuance of these rulings. The article concludes that the law needs to be amended if it is to serve those individuals with disabilities who are capable of productive employment but whose impairments do not fit the judicially narrowed definition of disability in the ADA.     

U.S. Multinational Activity Abroad and U.S. Jobs: Substitutes or Complements?

Critics of globalization claim that firms are being driven by the prospects of cheaper labor and lower labor standards to shift employment abroad. Yet the evidence, beyond anecdotes, is slim. This paper reports stylized facts on the activities of U.S. multinationals at home and abroad for the years 1977 to 1999. We focus on firms in manufacturing and services, two sectors that have received extensive media attention for supposedly exporting jobs. Using firm‐level data collected by the Bureau of Economic Analysis (BEA) in Washington, D.C., we report correlations between U.S. multinational employment at home and abroad. Preliminary evidence based on the operations of these multinationals suggests that the sign of the correlation depends on the crucial distinction between affiliates in high‐income and low‐income countries. For affiliates in high‐income countries there is a positive correlation between jobs at home and abroad, suggesting that foreign employment of U.S. multinationals is complementary to domestic employment. For firms that operate in developing countries, employment has been cut in the United States, and affiliate employment has increased. To account for firm size, substitution across firms and entry and exit, we aggregate our data to the industry level. This exercise reveals that the observed “complementarity” between U.S. and foreign jobs has been driven largely by a contraction across all manufacturing sectors. It also reveals that foreign employment in developing countries has substituted for U.S. employment in several highly visible industries, including computers, electronics, and transportation. The fact that there were U.S. jobs lost to foreign affiliates in key sectors, despite broad complementarity in hiring and firing decisions between U.S. parents and their affiliates, helps explain why economists view the impact of globalization on U.S. jobs as benign despite negative news coverage for declining industries.     

Dualism in Part-Time Employment

This paper draws on open-ended interviews of managers to characterize two distinct types of part-time employment in service industries. "Secondary" part-time employment displays the typical characteristics of a secondary labor market; "retention" part-time jobs are primary labor market jobs. Some predictions of this model are tested on Current Population Survey data.     

Zero Hours Contracts and Their Growth

This article studies the prevalence and nature of zero hours contracts (ZHCs) in the UK labour market. It is widely argued that the headline count of ZHC workers based on the Labour Force Survey historically underestimated the number of workers in ZHC jobs. Here, we argue that this likely continues to be the case, particularly if one considers other, similar, no-guaranteed-hours jobs alongside ZHCs. ZHC jobs and workers are heterogeneous, but ZHCs have become increasingly concentrated among young workers, full-time students, migrants, black and minority ethnic workers, in personal service and elementary occupations, and in the distribution, accommodation and restaurant sector over time. Compared to other forms of employment, median wages in ZHC jobs have also fallen. The most common prior labour market state for ZHC workers is non-ZHC employment, particularly part-time employment, with part of the reported growth in ZHCs driven by reclassification of existing employment relationships. Finally, we show that growth in public awareness of ZHCs contributed substantially to recent growth in reported ZHCs, particularly over the period 2013/14.     

A model for relating technology, organization and employment level: A study of the impact of computerization in the Swedish insurance industry

This article investigates effects of computerization in the Swedish insurance industry from 1960–1980. While the technological imperative dictates that many jobs would disappear, it was found that employment actually increased. The authors produce a model relating technology to employment levels and suggest that a range of moderating factors must be considered.     

Career Employment and Job Stopping

Career jobs typically end well before retirement and are followed by a period of postcareer employment. Although the most financially successful transitions occur when new positions are obtained in the same industry and occupation as the career job, mobility usually involves a change in industry andlor in occupation. Pension-covered career jobs last longer and more frequently end in retirement than noncovered positions. Pensions may also reduce the probability that retirements occur at very young ages and delay retirements when coverage is first obtained in postcareer employment.     

Minimizing Competition? Entry-Level Compensation in Japanese Firms

This is the first empirical study of the determinants of pay for entry-level jobs among Japanese firms. Pay data of 1,382 companies obtained from the Nikkei survey was matched with company size, performance, industry, and foreign ownership data from Toyo Keizai's Japan Company Handbook. I found that unlike the results based on U.S. data, company size is not related to entry-level pay. Firm performance is positively related, but its effect is minimal. Industry membership and foreign ownership are related. I believe that these findings highlight the influence of the Japanese employment context and information sharing in Japan. Implications for research and practice are discussed.     

Non‐Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis

Contingent forms of employment are usually associated with low‐quality jobs and, by inference, jobs that workers find relatively unsatisfying. This assumption is tested using data from a representative household panel survey covering a country (Australia) with a high incidence of nonstandard employment. Results from the estimation of ordered logit regression models reveal that among males, both casual employees and labor‐hire (agency) workers (but not fixed‐term contract workers) report noticeably lower levels of job satisfaction, though this association diminishes with job tenure. Negative effects for women are mainly restricted to labor‐hire workers.     

Why Do Employers Retrain At‐Risk Workers? The Role of Social Capital

Why are some employers willing to retrain workers who are at risk of layoff for new jobs in their organization, whereas others “churn” their workforce through layoffs and outside hiring? The question seems central to understanding why some employers and some jobs are “good,” whereas others are not and, more generally, for understanding employment security. The arguments herein use national probability data to examine this question and find that the retraining option is associated with preserving the social capital among current employees. Employers who make greater use of work systems that rely on social capital are more likely to retrain their workers. Alternative explanations—that retraining is an employee benefit associated with employee‐friendly policies or is part of overall strategy to invest in training—receive no support. These results extend our understanding of the role that social capital can play in organizations. They also suggest that being a “good” employer may have a great deal to do with other choices about systems of work organization.     

Temporary Help Work: Earnings,Wages, and Multiple Job Holding*

Temporary help services (THS) employment has been growing in size, particularly among disadvantaged workers. An extended policy debate focuses on the low earnings, limited benefits, and insecurity that such jobs appear to provide. We investigate the earnings and wage differentials observed between THS and other jobs in a sample of disadvantaged workers. We find lower quarterly earnings at THS jobs but a $1 per hour wage premium. We reconcile these findings in terms of the shorter duration and lower hours worked at THS jobs. We interpret the premium as a compensating wage differential.