Labor market flexibility and poverty dynamics

The past two decades have witnessed a rapid growth in flexible work arrangements that, in some instances, could expose workers to a higher poverty risk via limited job stability, few advancement opportunities, and low wages. Nowhere in the world has this increase in flexible work arrangements being more evident than in Spain, where about a third of the wage and salary workforce holds fixed-term contracts. Using Spanish panel data and maximum-likelihood binary models that account for state dependence and unobserved heterogeneity, we examine the poverty implications of past and present temporary employment. Our findings suggest that fixed-term contracts are linked to a greater poverty exposure among women and older men relative to open-ended contracts. Furthermore, this greater poverty exposure can last several years due to feedback effects operating via job instability or via the transition to work statuses characterized by higher poverty hazards. Finally, the adverse impact of temporary employment is linked to the short duration of some contracts, thus signaling the importance of work attachment.     

Excess worker turnover and fixed-term contracts: Causal evidence in a two-tier system

Portuguese firms engage in intense reallocation, most employers simultaneously hire and separate from workers, resulting in high excess worker turnover flows. These flows are constrained by the employment protection gap between open-ended and fixed-term contracts. We explore a reform that increased the employment protection of open-ended contracts and generated a quasi-experiment. The causal evidence points to an increase in the share and in the excess turnover of fixed-term contracts in treated firms. The excess turnover of open-ended contracts remained unchanged. This result is consistent with a high degree of substitution between open-ended and fixed-term contracts. At the firm level, we also show that excess turnover is quite heterogeneous and quantify its association with firm, match, and worker characteristics.     

A longitudinal analysis of search frictions and matching in the U.S. labor market

This paper takes a partial equilibrium on-the-job search model to a decade (1996–2006) of repeated cross-sections from the U.S. Current Population Survey. Each month, a set of parameters ruling worker mobility between labor market states and along the wage ladder is estimated using wage distributions and individual transitions. In particular, job-to-job mobility is decomposed into a voluntary component (on-the-job search) and an involuntary one (job reallocation). The resulting time series of transition parameters are first used in a longitudinal analysis of labor turnover and search frictions. Job reallocations are shown to be key in the acyclical behavior of the job separation rate, and in the procyclical behavior of the probability of changing job. Moreover, an index of search frictions is computed and shown to follow no cyclical pattern. The paper then turns to an estimation of the matching function with both unemployed and employed job seekers. The transition parameters from the job search model are used as weights in an aggregate indicator of labor supply. The inclusion of employed workers increases the estimates of the elasticities of the matching function with respect to its two inputs (labor supply and job vacancies).     

Immigrant wage profiles within and between establishments

Life cycle wages of immigrants from developing countries fall short of catching up with wages of natives. Using linked employer–employee data, we show that 40% of the native–immigrant wage gap is explained by differential sorting across establishments. We find that returns to experience and seniority are similar for immigrant and native workers, but that differences in job mobility and intermittent spells of unemployment are major sources of disparity in lifetime wage growth. The inferior wage growth of immigrants primarily results from failure to advance to higher paying establishments over time. These empirical patterns are consistent with signaling disadvantages of immigrant job seekers, but not with the explanation that low wage growth follows from inferior information about employers and job opportunities.     

Job mobility and the gender wage gap in Italy

This paper investigates the contribution of gender differences in job mobility to the emergence of a gender wage gap in the Italian labour market. We show that over the first 10 years of labour market experience job mobility accounts for up to 30% of total log wage growth for men and only 8.3% for women, and that this difference is mainly due to differences in returns to mobility. The gender mobility gap is robust to the inclusion of individual, job and firm characteristics, to different ways of accounting for individual unobserved heterogeneity, and is mainly found for voluntary job moves. Looking at the characteristics of the jobs and the firms' workers move to, we find that moves to larger firms represent by far the main source of gender differences in returns to mobility. We offer two possible explanations for this finding; one which involves differences in bargaining behaviour and one which relates to the theory of compensating differentials.     

Job and wage mobility with minimum wages and imperfect compliance

We propose a job search model with minimum wage regulations and imperfect compliance to explain the doubling of the mean and variance of hourly earnings of white males during the first 18 years of labor market experience. The model encompasses job mobility and on‐the‐job wage growth as sources of wage dynamics, and is estimated by simulated generalized method of moments using data from the National Longitudinal Survey of Youths 1979. Our estimates provide a good fit for the observed levels and trends of the main job and wage mobility data, and for the increase in the mean and variance of wages over the life cycle, as well as for the fall in the fraction of workers paid below the minimum wage. Job mobility explains 40–50% of the observed wage growth. Increases in the minimum wage and/or compliance deliver small effects on the wage distribution and the nonemployment rate. Copyright © 2010 John Wiley & Sons, Ltd.     

Contract employment policy and research productivity of knowledge workers: an analysis of Spanish universities

Abstract

This article investigates how contract employment practices adopted by universities—fixed-term contracts and permanent contracts—impact research productivity measured in terms of publications in scholarly journals. The empirical application considers the Spanish public higher education system for the period 2002–2008. We report an inverse U-shaped relationship between the rate fixed-term contracts and the research productivity of Spanish universities. That is, contract policies based on fixed-term contracts are conducive to research productivity; however, beyond a critical threshold value increases in the proportion of fixed-term contracts are associated with declining research productivity. These findings reveal that contract employment policies shape research productivity, and that flexible and balanced contract practices are critical for enhancing universities’ research productivity. The results suggest that the excessive use of fixed-term contracts might create an unstable working environment that limits the universities’ capacity to capitalize on their knowledge workers. Policy implications and future research avenues are discussed.     

Flexibility,labour retention and productivity in the EU

Abstract

This paper examines the relationship between internal flexibility, the employment of fixed-term contract workers and productivity in 27 European Union countries. Drawing on European Company Survey data, the paper assesses whether establishments that employ on a fixed-term basis experience higher productivity than their competitors and stronger labour productivity improvements over time. These issues are of importance, given the recent weakness of productivity growth in many EU member countries, the steps that governments have taken to relax rules relating to the employment of fixed-term workers and the emphasis placed on contractual flexibility within the European Commission’s flexicurity agenda. The paper finds that establishments that do not use fixed-term contracts enjoy productivity advantages over those that do. Establishments that employ on a fixed-term basis but retain workers once their fixed-term contract has expired perform better than those that do not retain workers. The findings also show that establishments that pursue internal flexibility report both higher productivity than competitors and productivity increases over time. In addition, they are more likely to retain workers who have reached the end of a fixed-term contract.     

Living flexibly? How Europe's science researchers manage mobility,fixed-term employment and life outside work

This paper draws from interviews with mobile science researchers to explore experiences of mobility and fixed-term employment in the EU. The paper takes a socio-legal approach, aiming to understand the contribution of EU law and policy to the resource framework within which career decisions are made. The high incidence of fixed-term employment and the expectation of geographic mobility in science labour markets has made science researchers very ‘flexible’ employees and, arguably, model EU citizens. But how are these factors managed in the context of every-day life? Developing sound empirical evidence of how individuals experience mobility and fixed-term employment could lead to more sensitive and effective policy making. This is particularly pertinent as human resource issues in science research have become central to achieving the EU's overarching strategies for growth and jobs (the Lisbon Strategy and Europe 2020). A range of policies designed to increase the mobility of researchers and to manage the use of fixed-term contracts have been put in place. This paper draws on empirical evidence to inform our understandings of these developing areas of law and policy in the EU.     

From the dark end of the street to the bright side of the road? The wage returns to migration in Britain

We examine the impact of internal migration in Britain on the growth in men's hourly wages using nationally representative panel data. To do this we compare wage outcomes for migrants against different control groups, and explicitly allow for the potential endogeneity of the migration decision. Our results demonstrate the existence of a wage growth premium to migration. The size of this premium depends on any associated job mobility and the reason for migration, and is largest for continuously employed men who migrated for job related reasons. The wage profiles of migrants and other workers diverge substantially in the two years post-migration.     

The part-time pay penalty in a segmented labor market

This paper is the first to examine the implications of switching to PT work for women's subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixed-term. Using a rich longitudinal Spanish data set from Social Security records of over 76,000 prime-aged women strongly attached to the Spanish labor market, we find that the PT/FT hourly wage differential is larger and more persistent among fixed-term contract workers, strengthening the existent evidence that these workers can be classified as secondary. The paper discusses problems arising in empirical estimation (including a problem not discussed in the literature up to now: the differential measurement error of the LHS variable by PT status), and how to address them. It concludes with policy implications relevant for Continental Europe and its dual structure of employment protection.     

行业收入分配现状分析及对策——以江西为例

行业在岗职工平均工资不断提高的同时,行业之间收入分配差距也在不断拉大。我国出现的行业收入差距拉大问题,并不是简单的收入分配体制不合理、机制不健全,更多的是因为垄断、收入分配行为不规范甚至寻租造成的。行业收入分配问题,既影响到整个行业效益的提高,更关系到和谐社会的构建,必须引起我们高度重视并下大力气加以解决。应在建立健全行业收入分配的激励机制、打破垄断建立平等参与市场竞争的收入分配秩序、提高低收入行业职工的劳动报酬等方面,逐步完善行业收入分配制度。     

Independent and dependent contracting: Meaning and implications

In the context of the changing nature of work and the continuing growth of contingent employment contracts, this article examines the consequences associated with various forms of individually-negotiated, fixed-term contracts. This article first draws a distinction between what can be labeled as independent contracting arrangements, where the workers are autonomous and mobile, and other situations where contractors are more “dependent” on their clients. This investigation then provides an overview of the consequences associated with the employment of “independent” and “dependent” contractors. Based on a review of the existing research literature, the article examines the prescribed and realized benefits of individual contracting from the perspectives of the organization, the permanent employees, and the contractors themselves. Finally, the article concludes with some suggestions for human resource management (HRM) practice as well as areas in need of future research attention.     

Wages,implicit contracts,and the business cycle: Evidence from a European panel

We study the joint behavior of hours and wages over the business cycle in a unique panel of 13 European countries, and document significant history dependence in wages. Workers who experience favorable market conditions during their tenure on the job have higher wages, and work fewer labor hours. Unobserved differences in productivity, such as varying job quality, or match-specific productivity are not likely to explain this variation. The results instead point to the importance of contractual arrangements in wage determination. In economies with decentralized bargaining practices, such arrangements resemble self-enforcing insurance contracts with one-sided commitment (by the employer). On the other hand, in countries with strong unions and centralized wage bargaining, wage behavior is better approximated by full-commitment insurance contracts. The co-movement of hours and wages further confirms a contractual framework with variable worker hours. Despite the strong prevalence of contracts in Europe, however, the elasticity of labor supply is considerably smaller compared to the U.S. labor market.     

Gender differences in early-career wage growth

In Finnish manufacturing, the gender wage gap more than doubles during the first ten years in the labour market. This paper studies the factors contributing to the gender gap in early-career wage growth. The analysis shows that the size of the gender gap in average wage growth varies with mobility status, the gap being higher with employer changes compared to wage growth within firms. Several explanations for the gender gap in wage growth based on human capital theory and theory of compensating wage differentials are considered. However, much of the gap in wage growth remains unexplained. The distributional analysis of the wage growth shows that the female wage penalty increases significantly as we move along the conditional wage growth distribution, the increase being stronger with employer changes compared to within-firm wage growth.     

Participation in continuous,on-the-job training and the impact on job satisfaction: longitudinal evidence from the German labour market

A number of studies in the human resources literature acknowledge the importance of workplace training for inducing organizational commitment on the part of workers. However, small sample sizes and the absence of relevant panel data have raised concerns about the general validity of results and highlighted the need for further research to explicitly include on-the-job training as an important facet of job satisfaction. A similar empirical gap exists in the economics and industrial organization literature, where, despite the importance of both on-the-job training and job satisfaction to influence labour productivity, the relationship between the two has received surprisingly little attention. The aim of this paper is to bridge this gap in our knowledge and assess the impact of further training on job satisfaction in the western regions of Germany. We use data derived from the German Socio-economic Panel, which covers the period 1984 to 2002. Concentrating on full-time employed individuals, we focus in particular on the 1989, 1993 and 2000 interview waves, which include a number of questions on work-related training and offer detailed information on the type and duration of training received, and whether employers sponsored such training. The empirical results of the study provide information about the decision to participate in further training and the latter's impact on job satisfaction. Gender inequality issues in Germany's segmented labour market are explained by reference to discrepancy theory, equity theory, social exchange theory and the perception of a breach in the psychological contract between firms and female trainees.     

The Gender Wage Gap in Europe: Job Preferences,Gender Convergence and Distributional Effects

The gender wage gap has declined over time. However, most of the remaining gap is unexplained, partly because of gender convergence in wage‐determining characteristics. In this paper, we show the degree of convergence differs substantially across Europe. In some countries, predominantly in Eastern Europe, the gender wage gap is entirely unexplained. However, in other countries, differences between the characteristics of men and women explain a relatively large proportion of the wage gap. Gender differences in job preferences contribute 10% to the wage gap, which is more than job tenure, previous employment status or field of study. The role of job preferences is particularly strong at the top of the wage distribution.     

How binding are legal limits? Transitions from temporary to permanent work in Spain

This paper studies the duration pattern of fixed-term contracts and the determinants of their conversion into permanent ones in Spain, where the share of fixed-term employment is the highest in Europe. We estimate a duration model for temporary employment, with competing risks of terminating into permanent employment versus alternative states, and flexible duration dependence. We find that conversion rates are generally below 10%. Our estimated conversion rates roughly increase with tenure, with a pronounced spike at the legal limit, when there is no legal way to retain the worker on a temporary contract. We argue that estimated differences in conversion rates across categories of workers can stem from differences in worker outside options and thus the power to credibly threat to quit temporary jobs.     

Ranking of job applicants,on-the-job search,and persistent unemployment

We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use information on whether the searching worker is employed or unemployed as a hiring criterion. We show theoretically that such ranking of job applicants by employment status raises both the level and the persistence of unemployment and numerically that the effects may be substantial. More prevalent ranking in Europe compared to the US (because of more rigid wage structures, etc.) could potentially help to explain the high and persistent unemployment in Europe.     

黑龙江省城镇就业人员平均工资分析

黑龙江统计年鉴2013将原有的城镇在岗职工平均工资指标调整为城镇就业人员平均工资,且数据统计时间为2008-2012年。依据统计年鉴的数据对黑龙江省城镇就业人员平均工资进行了分析,结果表明在研究期间内,在平均工资上涨的同时,不同部门就业人员的平均工资仍然存在差距。