scholarly journals An Alternative to Signaling: Directed Search and Substitution

2016 ◽  
Vol 8 (4) ◽  
pp. 1-15
Author(s):  
Matthew Levy ◽  
Balázs Szentes
Keyword(s):  
Labor Market ◽  
Positive Measure ◽  
Directed Search ◽  
Unique Equilibrium ◽  
Skilled Workers ◽  
Entry Costs ◽  
Entry Cost

This paper analyzes a labor market, where: workers can acquire an observable skill at no cost, firms differ in unobserved productivity, workers' skill and firms' productivity are substitutes, and firms' search is directed. The main result is that, if the entry cost of firms is small, no worker acquires the skill in the unique equilibrium. For intermediate entry costs, a positive measure of workers obtain the skill, and the number of skilled workers goes to one as entry costs become large. Welfare is highest when the entry cost is high. (JEL D21, D24, D82, D83, J24)

Shortage of Skills in the Labor Market: Limited Supply, Lack of Demand, or False Signals from Employers?

2004 ◽  
pp. 76-94 ◽  
Author(s):  
V. Gimpelson
Keyword(s):  
Labor Market ◽  
Competitive Market ◽  
Skilled Workers ◽  
Industrial Enterprises ◽  
Russian Industry ◽  
General Skills ◽  
Limited Supply

The article discusses the issue of shortage of skills in the Russian industry. Using microdata from a survey of industrial enterprises, the author confirms that most of employers complain of difficulties in hiring and attaching skilled workers. In case of mass occupations, this shortage relates mostly to low efficient enterprises, which are unable or unwilling to pay competitive market going wage. More efficient and better paying firms are less likely to face shortage of general skills on the labor market but may face limited supply of specific skills.

scholarly journals Educational and qualificational disproportions of Ukraine's regional labor market

2019 ◽  
Vol 2019 (2) ◽  
pp. 99-118 ◽  
Author(s):  
Viktoriia Blyzniuk ◽  
Yaryna Yuryk
Keyword(s):  
Labor Market ◽  
Vocational Education ◽  
Regional Distribution ◽  
Regional Level ◽  
Comparative Characteristic ◽  
Skilled Workers ◽  
Economic Activities ◽  
Education Development ◽  
Regional Labor Market ◽  
Regional Labor

The article deals with educational and qualificational features and disproportions of the regional labor market. The authors reveal and summarize the features of structural and dynamic characteristics of the labor market in an industrial region (Zaporizhzhya region), and professional and sectoral structure of the employed and unemployed population. The disproportionality between regional distribution of vocational education and demand for skilled labor is considered in the context of the uneven distribution of employees by professions and economic activities, which led to distortions in the quantitative and qualitative structure of the labor market and further aggravated the mismatch between the level of labor's skills and the needs of employers at the regional level. The paper substantiates the conclusion about the autonomy of the trajectories of vocational education development in the region and the labor market of worker professions, which shows up in the excessive qualification of the employed population in the region. Based on the results of analytical calculations, the authors identified and fully characterized the professional "core" of the Zaporizhzhya region, which covers no less than 80% of all employed in the worker professions and identified, in its structure, the most wide spread professions in the region. The comparative characteristic of the professional "core" with the need of employers and their salary offers allowed to identify the bottlenecks of the occupational structure of employment in the region. Since the training of workers in accordance with the policy of decentralization is a prerogative of local authorities, it is at the regional level that workers should be trained to ensure the replenishment of a professional "core". The authors prove that the system of worker training in Zaporizhzhya region is not able to bring the training of skilled workers in line with the needs of the labor market. It is the social dialogue with all stakeholders in the region that acquires particular importance for the modernization of the content of educational policy.

scholarly journals Monetary Policy and Inequality under Labor Market Frictions and Capital-Skill Complementarity

2021 ◽  
Vol 13 (2) ◽  
pp. 292-332
Author(s):  
Juan J. Dolado ◽  
Gergő Motyovszki ◽  
Evi Pappa
Keyword(s):  
Monetary Policy ◽  
Labor Market ◽  
Income Inequality ◽  
New Keynesian ◽  
Labor Income ◽  
Skilled Workers ◽  
Investment Demand ◽  
Multiplier Effect ◽  
Distributional Consequences ◽  
Amplification Mechanism

We provide a new channel through which monetary policy has distributional consequences at business cycle frequencies. We show that an unexpected monetary easing increases labor income inequality between high-skilled and less-skilled workers. To rationalize these findings, we build a New Keynesian DSGE model with asymmetric search-and-matching (SAM) frictions and capital-skill complementarity (CSC) in production. We show that CSC on its own introduces a dynamic demand amplification mechanism: the increase in high-skilled employment after a monetary expansion makes complementary capital more productive, encouraging a further rise in investment demand and creating a multiplier effect. SAM asymmetries magnify this channel. (JEL E32, E52, E24, E12, E25, J63)

scholarly journals HUMAN CAPITAL AND ITS ROLE IN THE FOURTH INDUSTRIAL REVOLUTION

2021 ◽  
Author(s):  
Yelyzaveta Snitko ◽  
Yevheniia Zavhorodnia
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Labor Market ◽  
Technological Change ◽  
Industrial Revolution ◽  
Skilled Workers ◽  
Fourth Industrial Revolution ◽  
Modern Economy ◽  
The Future ◽  
The Impact

The development of a modern economy, in the context of the fourth industrial revolution, is impossible without the accumulation and development of human capital, since the foundation of the transformation of the economic system in an innovative economy is human capital. In this regard, the level of development and the efficiency of using human capital are of paramount importance. This article attempts to assess the role of human capital in the fourth industrial revolution. In the future, human talent will play a much more important role in the production process than capital. However, it will also lead to a greater division of the labor market with a growing gap between low-paid and high-paid jobs, and will contribute to an increase in social tensions. Already today, there is an increase in demand for highly skilled workers, especially in high-income countries, with a decrease in demand for workers with lower skills and lower levels of education. Analysis of labor market trends suggests that the future labor market is a market where there is simultaneously a certain demand for both higher and lower skills and abilities, combined with the devastation of the middle tier. The fourth industrial revolution relies heavily on the concept of human capital and the importance of finding complementarity between human and technology. In assessing the impact of the fourth industrial revolution, the relationship between technology, economic growth and human resources was examined. The analysis was carried out in terms of three concepts of economic growth, technological change and human capital. Human capital contributes to the advancement of new technologies, which makes the concept of human capital an essential factor in technological change. The authors emphasize that the modern economy makes new demands on workers; therefore it is necessary to constantly accumulate human capital, develop it through continuous learning, which will allow the domestic economy to enter the trajectory of sustainable economic growth. The need to create conditions for a comprehensive increase in the level of human capital development is noted.

Wages of Skilled Migrant and Native Employees in Germany: New Light on an Old Issue

2021 ◽  
pp. 019791832110405
Author(s):  
Stephan Brunow ◽  
Oskar Jost
Keyword(s):  
Labor Market ◽  
Wage Gap ◽  
Wage Structure ◽  
Current Debate ◽  
Skilled Workers ◽  
Wage Setting ◽  
Demographic Ageing ◽  
Labor Market Experience ◽  
Market Experience ◽  
Experience Curves

The German Council of Economic Experts (GCEE) argues for a labor market-driven immigration of skilled migrants into Germany to overcome a decline in workforce due to demographic ageing. We pick up this current debate on skilled immigration by analyzing the migrant-native wage differential for skilled workers in Germany and consider various information on firms. Our results indicate that the wage gap is mainly explained by observable characteristics, especially labor market experience and firm characteristics. However, we find lower rewards for migrants’ labor market experience than for natives (flatter experience curves). Our results show that these differences in experience curves become negligible in the long run. Moreover, we reveal firms’ wage-setting policies: Firms evaluate a worker's education independent of migration backgrounds, as migrants possess the same productivity levels as their German counterparts in the same occupations and task levels. Due to Germany's heterogeneous immigration structure, we are able to compare the results for different migrant subgroups and, thus, derive valuable insights into the migrant-native wage structure with a wide reach beyond Germany. This article adds to current debates in various industrialized countries with demographic ageing patterns, as it focuses on an important group for domestic labor markets: skilled immigrants.

scholarly journals Do High-Wage Jobs Attract More Applicants? Directed Search Evidence from the Online Labor Market

2019 ◽  
Vol 37 (3) ◽  
pp. 715-746 ◽  
Author(s):  
Stefano Banfi ◽  
Benjamín Villena-Roldán
Keyword(s):  
Labor Market ◽  
Directed Search ◽  
High Wage ◽  
Online Labor

scholarly journals How the Not-So-Powerless Prevail: Industrial Labor Market Demand and the Contours of Militancy in Mid-Twentieth-Century São Paulo, Brazil

2010 ◽  
Vol 90 (1) ◽  
pp. 109-142 ◽  
Author(s):  
John D. French
Keyword(s):  
Labor Market ◽  
Sao Paulo ◽  
Shop Floor ◽  
Communist Labor ◽  
São Paulo ◽  
Market Demand ◽  
Skilled Workers ◽  
Labor Militancy ◽  
Industrial Labor ◽  
New Unionism

Abstract Extensive interviews and confidential police and judicial records are used to explore the life of Marcos Andreotti (1910–1984), a lifelong Communist labor leader active in the industrial ABC region of greater São Paulo. The intensified persecution faced by Andreotti in the early Cold War years is placed within the trajectory of Andreotti’s working life as a skilled electrician. The labor market demand for skilled workers, it is shown, provided the foundation for Andreotti’s sustained militancy and decisively shaped his philosophy of shop floor organizing based on a dialectic between the skilled and the unskilled. This essay sheds new light on the poorly understood foundations of working-class political and labor militancy, while highlighting unexpected continuities between the era of Andreotti, before 1964, and the world of the “New Unionism” in the late 1970s, which began in ABC under the leadership of Brazil’s current president, Luiz Inácio Lula da Silva.

The Impact of the Asian Financial Crisis on Foreign Workers in Taiwan

1998 ◽  
Vol 7 (2-3) ◽  
pp. 145-169 ◽  
Author(s):  
Joseph S. Lee
Keyword(s):  
Labor Market ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Construction Projects ◽  
Economic Structure ◽  
Asian Financial Crisis ◽  
Foreign Workers ◽  
Skilled Workers ◽  
The Future ◽  
The Impact

Having experienced an economic crisis earlier, Taiwan was on its way to recovery when the crisis struck in 1997. In general, Taiwan's labor market was hardly affected by the crisis. Although the demand for foreign workers continues, there will be a decline in the employment of foreign workers in the future. The completion of construction projects and the upgrading of the economic structure would imply a lesser demand for foreign workers in the next few years. In the future, while the Taiwanese labor market would be more restrictive of less-skilled workers, it would be more open to professionals and highly skilled.

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