Illegal immigration in a heterogeneous labor market

This paper examines the effects of illegal immigration in a neoclassical growth model with two groups of workers, skilled and unskilled. We show that although illegal immigration is a boon to a country as a whole, there are distributional effects, whose sign is in general ambiguous. This is because all sources of income of both groups are affected and some of these changes tend to move income in opposite directions. Nevertheless, calibration exercises show that the wealth distribution is likely to become more unequal as the number of illegal immigrants increases. We confirm most of our calibration results analytically in a small open economy version of the basic model. Finally, our results remain robust when we extend the model to allow for endogenous skill acquisition.     

处在变革当中的韩国劳务市场

上世纪90年代以前,韩国不仅是世界上实力雄厚的国际工程承包商的国家,而且也是最大的劳务输出国之一。然而,随着经济的发展,韩国目前实际上已由劳务输出国成为部分行业劳动力短缺的国家。劳动力缺失严重已经成为困扰韩国中小企业发展的瓶颈据韩国统计厅公布的一份资料显示:2002     

A social clause against discrimination in the labor market

This paper considers the possibility of employing a social clause on international trade to reduce occupational discrimination and wage discrimination in the labor market. A country subject to such a clause is given the choice of reducing discrimination or having to face the imposition of a tariff or quota on its exports. The impact of these two changes on the remunerations of different groups in society is analyzed in a model allowing for a labor surplus. The analysis shows that neither in the case of occupational discrimination nor in the case of wage discrimination is the social clause necessarily an efficient means for reducing discrimination. Very much depends on how different groups are affected, on the relative political weight of these groups, and on the share of exports in total output.     

Implementing the Mortensen rule in a frictional labor market

We show that, in settings where meetings can be multilateral, the allocation rule proposed by Mortensen (1982) can be relatively straightforward to implement: as a local auction conducted by sellers. The implications of using this mechanism in a simple model of the labor market are then explored. We characterize the equilibrium properties of this model, which include wage dispersion, and examine its implied Beveridge curve. A dynamic version of the model is calibrated to the US labor market, and we show that the model can account for observed vacancy rates, given parameters that are chosen to match the average wages and the natural rate of unemployment, although the implied wage dispersion is quite small. Finally, in the limit, as the time between offer rounds in the model approaches zero, the equilibrium approaches the Walrasian competitive equilibrium.     

Occupational self-selection in a labor market with moral hazard

This paper studies the determinants and implications of self-selection when firms imperfectly observe worker effort. The effects of the resulting moral hazard problem on the self-selection mechanism are analyzed in a model in which workers simultaneously choose an employment sector and an effort level. The implications of the model reveal that in the presence of moral hazard, workers’ effort decisions become an additional mechanism determining the pattern of selection into sectors. Workers’ sector-specific endowments impact sectoral allocation through their effect on workers’ comparative advantage as well as their effect on workers’ shirking propensity. The model is then used in an empirical application that analyzes workers’ self-selection into white collar and blue collar occupations. The estimation results, based on data from the National Longitudinal Survey of Youth, suggest that workers’ occupational self-selection leads to higher wages and lower dismissal rates in both occupations, compared to an economy in which workers are randomly assigned to each occupation. The difference in dismissal rates between the two occupations is driven by the higher expected productivity in the white collar sector. The positive effects of occupational sorting diminish as the labor market becomes increasingly characterized by moral hazard. Results also suggest that human capital investments in skills that are most relevant to blue collar jobs may generate higher wages and lower dismissal rates in both white collar and blue collar occupations.     

A Keynesian model of search and labor market disequilibrium

The paper develops Keynesian employment dynamics in a search model with stochastic vacancy-availability playing the major role. A UV curve is derived from the search dynamics, and in effect represents a demand for searchers to maintain employment levels. The supply of searchers is determined from the real wage, the duration of the search necessary to locate a vacancy, and layoff probabilities. Persistent disequilibrium in the labor market is examined, and it is shown how a lowering of the real wage can increase employment and lower unemployment.     

Evaluating active labor market programs in Romania

Using unusually rich (for transition economies) follow-up survey data and propensity score matching techniques, this paper seeks to increase our knowledge on what active labor market programs (ALMPs) work in South-East European countries by providing estimates of the effects of four ALMPs implemented in Romania in the late 1990 s. We find that three programs (training and retraining, self-employment assistance, and public employment and relocation services) had success in improving participants’ economic outcomes. In contrast, public employment was found detrimental for the employment prospects of its participants. Our sensitivity analysis also finds evidence that, in the case of training and retraining, self-employment assistance, and public employment and relocation services, operators “cream off” the most qualified candidates among the unemployed; whereas public employment seems to be used as a regional policy by “bringing work to the workers”, that is, creating jobs in high unemployment regions.     

Pitfalls in the modeling of labor market flows: a reappraisal

ABSTRACT

We discuss the relevance of the internationally adopted methodology for modelling labour market flows and comparing labour market flexibility. This is based on a two-state labour market model that neglects inactivity and uses aggregate stock data to derive transition rates. Traditionally, the results suggest that continental European labour markets are inflexible and unable to adjust quickly to aggregate demand or supply shocks compared with their Anglo-Saxon counterparts. This evidence has driven us to gain a better understanding of the relevance of such a modelling approach and critically discuss its main methodological hypothesis. We relax its assumptions by including inactivity and by using flow data for the period 2010–2017. We compare the results thus obtained with transition rates derived using a three-state labour market model for France, Italy, Spain and the United Kingdom. These countries represent the institutional settings of continental Europe on the one hand and Anglo-Saxon nations on the other. The implied transition rates are much higher, even in continental Europe, when inactivity is considered, thus suggesting that conclusions derived using an incomplete representation of the labour market are misleading. Inactivity therefore plays a crucial role and its inclusion provides a more exhaustive picture of labour mobility.     

德国海员劳务市场的发展、问题与建议

海员输出是技术含量大、经济附加值较高的一种劳务输出。德国拥有世界第五大商船队,对国际海员的需求很大。德籍船东雇佣的外籍海员达25000多人,但迄今为止,与我国开展的海员劳务合作却很少。德国商船队规模德国是仅次于美国的世界贸易大国,对外贸易的依存度较高,是传统的航运大国。汉堡、不莱梅两大港口地处欧洲中心枢纽地带,拥有向欧洲腹地辐射的优势。据德国船东协会(VDR)统计,截至2003年底,德国的船运公司大约有390家,由德船东控制的商船约2397艘,总运力达3400万总吨。其中,入德国船籍、悬挂德国国旗的商船共482艘,580万总吨;入德国船…     

A general equilibrium open economy model for emerging markets: Monetary policy with a dualistic labor market

An optimizing model of a small open emerging market economy (SOEME) with dualistic labor markets and two types of consumers, delivers a tractable model for monetary policy. Differences between the SOEME and the SOE are derived. Parameters depend on features of the labor market and on consumption inequality, and affect the natural interest rate, terms of trade and potential output. The supply curve turns out to be flatter and more volatile, with a larger number of shift factors, including policy-determined terms of trade. A simple basic version of the model is simulated in order to compare different policy targets in response to a cost shock. Flexible domestic inflation targeting gives the lowest volatility although there are trade-offs. Exchange rate volatility is relatively lower but still makes a major contribution to controlling inflation. Flexible CPI inflation targeting performs better when combined with some kind of managed floating. Inflation targeting has to be flexible. With more backward-looking behavior the policy response to a shock is reduced.     

Greening work: labor market policies for the environment

Empirica - Jobs are essential for social inclusion, raising taxes, and guaranteeing the financial resilience of (welfare) states. At the same time, the Sustainable Development Goals, the Paris...     

A model of working time under utility competition in the labor market

The text develops a model of wage and working-time setting by profit-maximizing firms in a competitive labor market with homogeneous workers. Emphasis is placed on the role played by fixed costs of labor and of workers' varying effectiveness in time. Competition among firms implies a constraint on the utility level associated to the labor contract. The model contributes to explain insiders' rationing and other contemporary stylized facts, and lends itself to a particular approach to the problem of evaluating the consequences of mandatory working-time reductions.     

Long-run matching relationship in the Japanese labor market

This paper investigates the long-run relationship among new hiring, unemployment (job seekers), and unfilled vacancies in Japan, using an annual panel data on 47 prefectures for 1972-1999. We find that these three variables are I(1) processes, and are cointegrated in our panel data. Further, we estimate the panel cointegration equation derived from a Cobb-Douglas matching function by the heterogeneous fully modified OLS and heterogeneous dynamic OLS. The estimation results reveal that conventional within estimates could have non-negligible biases.First version received: November 2002/Final version received: October 2003All correspondence to Shigeki Kano. The authors are grateful to the associate editor and two anonymous referees of this journal for helpful comments. Doctor Stephen J. Turnbull (University of Tsukuba) is also acknowledged for correcting English errors in this paper. Remaining errors are due to the authors. The data set and GAUSS programming code used in this paperare available upon request.     

Labor market reform and incidence of child labor in a developing economy

The paper is purported to examine the consequences of possible labor market reform in the developing economies on the incidence of child labor and economic well-being of the child labor supplying families. A two-sector, full-employment general equilibrium structure with child labor and imperfection in the market for adult labor has been used for the analytical purpose. Although this policy is likely to lower the incidence of child labor the welfare of the families supplying child labor worsens. The paper, therefore, questions the desirability of a policy designed at mitigating the child labor problem especially when it makes the poor families worse off.     

A Schumpeterian model of investment and innovation with labor market regulation

Theoretical and empirical models provide ambiguous responses on the relationship between labor market regulation, innovation and investment. On the one hand, labor market regulation increases firms' adjustment costs and, ceteris paribus, decreases investment. But, on the other, it also stimulates firms to invest, innovate, increase productivity and profit in the long run. In this paper we present an endogenous growth model that describes the role of these opposite forces, and why a stricter labor market regulation may positively affect innovation and investment in the long run. Most of the theoretical and empirical results hold for Italy, Germany, France, and Spain.     

A model of local labor market reguiation of Chin in the transition period

With the establishment of labor market of China,market is playing a more and more important role in allocation of human resources.However,with the transition of economy in China and industrial upgrading in recent years,many labor problems have occurred which do harm to the sustainable development of local economy.The paper researches on the labor market issues of China from the perspective of local labor market regulation,Firstly,reviews the theories of local labor market regulation.And then the main components of local labor market regulation of China are identified and the evaluation index system is established,The results of analysis of the calculated output show that (1) the local labor market regulation of China has an obvious character of gradient distribution geographically and decreases gradually from east to west;(2) of all the regulations,the regulation of the development of human capital has the most significant impact on local economy currently which is followed by the regulation of laborrelation and the regulation of market participation.As to the regulation of social security,it has no significant impact on the development of local economy.     

Informality and productivity in the labor market in Peru

This article analyzes the evolution of informal employment in Peru from 1986 to 2001.

Contrary to what one would expect, the informality rates increased steadily during the 1990s despite the introduction of flexible contracting mechanisms, a healthy macroeconomic recovery, and tighter tax codes and regulation. We explore different factors that may explain this upward trend including the role of labor legislation and labor allocation between/within sectors of economic activity. Finally, we illustrate the negative correlation between productivity and informality by evaluating the impacts of the Youth Training PROJOVEN Program that offers vocational training to disadvantaged young individuals. We find significant training impacts on the probability of formal employment for both males and females.     

A model of local labor market regulation of China in the transition period

With the establishment of labor market of China, market is playing a more and mare important role in allocation of human resources. However, with the transition of economy in China and industrial upgrading in recent years, many labor problems have occurred which do harm to the sustainable development of local economy. The paper researches on the labor market issues of China from the perspective of local labor market regulation. Firstly, it reviews the theories of local labor market regulation. And then the main components of local labor market regulation of China are identified and the evaluation index system is established. The results of analysis of the calculated output show that （1） the local labor market regulation of China has an obvious character of gradient distribution geographically and decreases gradually from east to west; （2） of all the regulations, the regulation of the development of human capital has the most significant impact on local economy currently which is followed by the regulation of labor relation and the regulation of market participation. As to the regulation of social security, it has no Significant impact on the development of local economy.