scholarly journals Differences in flexibility of labour markets in OECD countries – the topsis method

2011 ◽  
Vol 2 (3) ◽  
pp. 43-64
Author(s):  
Agnieszka Ertman

Flexible labour market can be defined as the market with capability to adapt to changing economic conditions so as to keep high employment rate, unemployment and inflation low and ensure continued growth in real incomes. Labour market flexibility has a significant influence on employment level in the economy. Some economists believe that higher level of protection in the labour market is accompanied with lower employment rates in the economy. Low labour market flexibility is a contemporary problem of many economies. Lack of flexibility in this market is often associated with regulation of labour market in such areas as social insurance, minimum wage, legislation relating to employment protection and the strength of trade unions. EPL index (Employment Protection Level) is a basic measure indicating degree of labour market regulation. The index was created by the OECD experts and is used for international comparisons. The article aims to examine a degree of labour markets flexibility in OECD countries and identify position of Poland compared to other OECD members. TOPSIS method (Technique for Order Preference by Similarity to an Ideal Solution) is applied to achieve the goal. This method consists in creating synthetic index and calculates the distance of each object between the ideal solution and negative ideal solution, and then linear ordering of researched objects. Synthetic indicator of labour market flexibility was calculated using 11 variables, among which institutional variables such as restrictiveness of employment protection, tax wedge, trade union density or percentage of part time workers in total employment dominated. Synthetic index also covers variables describing labour market performance e.g. employment rate of young and older workers or long term unemployment rate as they indicate a speed of labour market’s responsiveness on external changes.

2013 ◽  
Vol 19 (64) ◽  
pp. 24-26
Author(s):  
Anne Goulding ◽  
Evelyn Kerslake

Flexibility is a vaguely defined media buzzword connoting the progressive, forward-looking workplace. Employers report that increased labour market flexibility has made them more cost-effective, efficient, better able to deal with customer and employee demands and the implementation of new technology. But what is happening to those workers who make up the flexible workforce? For a while in the 1980s it seemed that flexibility could do no wrong; now, however, the shortcomings of flexible labour markets are becoming more apparent.


2014 ◽  
Vol 17 (1) ◽  
pp. 21-44
Author(s):  
Eugeniusz Kwiatkowski ◽  
Przemysław Włodarczyk

This article presents the impact of the global crisis on employment in the OECD countries, and in particular is an attempt to explain why the impact is of a different scope in particular countries. Particular attention has been paid to the question of the role played by labour market institutions (such as employment protection legislation and fixed-term employment). The global economic crisis has influenced the situation in the labour markets of OECD countries, causing declines in employment and increases in unemployment. Changes in the level of employment in individual countries varied. Between 2007-2012 declines in production took place in the majority of OECD countries. Declines in real wages were also observed in those countries. On the other hand, in the period of 2005-2012 relatively small changes in labour market institutions occurred. With respect to both the stringency of employment protection legislation, as well as the share of fixed-term employment, there were no clearly visible trends in the data during the period of economic crisis. The econometric verification of theoretical hypotheses was performed using annual data from the 2005-2012 period for 26 OECD countries, and it shows that GDP and real wages were statistically significant determinants of employment size in the analyzed period. The study also confirmed the hypothesis of the existence of a non-linear (U-shaped) relationship between employment elasticity with respect to GDP and the level of stringency of employment protection legislation, as well as the share of fixed-term employment in the total number of employment contracts. The results show that the smallest declines in employment during a crisis might be expected in countries where the level of EPL is close to 2, and the share of fixed-term employment in the total number of employment contracts is close to 18%.


Author(s):  
Gebhard Flaig ◽  
Horst Rottmann

SummaryThis paper deals with the effects of labour market institutions on labour market performance. We analyse as an indicator for the labour intensity of output growth the employment threshold (the minimum growth rate of output necessary to keep employment constant). We show for a sample of 17 OECD countries for the period 1971 to 2002 that the strictness of employment protection raises the employment threshold in all econometric specifications. A higher wage bargaining co-ordination and a higher tax wedge reduce also the labour intensity of production, although the effects are not in all econometric specifications significant


2022 ◽  
Vol 14 (1) ◽  
pp. 526
Author(s):  
Anna Galik ◽  
Monika Bąk ◽  
Katarzyna Bałandynowicz-Panfil ◽  
Giuseppe T. Cirella

This study evaluates labour market flexibility using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), a multi-criteria decision analysis (MCDA) method. TOPSIS is employed by comparing spatial (i.e., different countries) and temporal (i.e., long-time horizon) terms. Sustainable industrial relations processes are considered in shaping the flexibility of the labour market in 15 European Union Member States from 2009 to 2018. Countries are grouped into classes to provide a basis for benchmarking results against social and employment policies implemented at the national level. A five-step quantitative MCDA method is formulated using published data from the Organisation for Economic Co-operation and Development. The results indicate that the TOPSIS method is an appropriate approach for measuring labour market flexibility internationally. Moreover, in relation to workforce phenomena, the findings show that the method offers the possibility of examining the impact of particular factors related to social and employment policies of a country in terms of sustainable development and socioeconomic growth. The lack of precision tools to forecast the development of national and transnational labour markets—particularly during the COVID-19 era—highlights the importance of such a method for workforce planners and policymakers. Developing sustainable industrial relations in terms of associated national externalities is the motivation of the research.


2021 ◽  
Author(s):  
Ezgi Demiral

The significant a reason of female poverty is that in general, women aren't considered to be in the labour market. Women that are in the labour market either in lower status from men or perform informal jobs or get paid less money even when they're employed in the same jobs. Female employment rate or women's education level are indicator of female poverty. The aim of this paper is to analyse female poverty in Turkey and selected OECD countries. This study obtained the female employment rate and women's education level data from the Economic Co-operation and Development database for the years between 2008-2019. Graphic by these data were analyzed comparative data analysis. In addition, specifically for the analysis of structure of women's employment in Turkey was to get data related to part-time employment, informal jobs and unpaid family workers from Turkish Statistical Institute. The results show that both women in labour market and women's education levels are extremely low level in Turkey compared to selected OECD countries. Part-time employment, informal jobs and unpaid family workers have place in women's employment. When women's employment increases it's expected to see that women poverty decreases. But women in Turkey mostly works in informal jobs or flexible working hours. This situation isn't enough effective enough to struggle fight female poverty and this resulted working women poverty. Firstly, policies should be developed to improve women will have increased participation in the qualified workforce and to length of stay in education by governments.


2021 ◽  
pp. 095968012110568
Author(s):  
Sinisa Hadziabdic ◽  
Lorenzo Frangi

Focusing on 13 OECD countries over 25 years, we examine the factors that explain why a sizable fraction of wage-earners exhibit an inconsistency between their union membership status and their confidence in unions by being either confident non-members or non-confident members. While structural factors associated with joining constraints generate inconsistency in specific labour market categories, wage-earners who have extreme ideological orientations and are highly interested in politics are much less likely to exhibit inconsistency across time and countries. For individuals who have intermediate ideological orientations and are not very interested in politics, differences in terms of non-member and member inconsistency between countries are explainable through contextual variables such as economic conditions, the level of employment protection, and historical legacies. Implications for union membership research and union strategies are discussed.


2016 ◽  
Vol 19 (4) ◽  
pp. 5-26 ◽  
Author(s):  
Eugeniusz Kwiatkowski

This paper aims to identify the effects of the global crisis on employment and unemployment in the EU countries and indicate factors which may explain the differentiated response of labour markets to this crisis. Analyses show that the global economic crisis affected the labour markets of EU countries, causing declines in employment and increases in unemployment. The greatest declines in employment were observed in Greece, Estonia, Ireland, Spain, Iceland, and Portugal, and the lowest in Austria, Belgium, the Netherlands, and Poland. The greatest increase in unemployment occurred in the Baltic countries, Greece, Spain, and Portugal. The analyses indicate that the scale of changes in employment and unemployment during the global crisis depends on such factors as: the depth of the demand shock and scale of GDP adjustments; the degree of openness of the economy; the scope of alternative labour market adjustments and some labour market institutions, especially employment protection legislation and the share of fixed-term employment contracts. The analyses indicate that the smallest declines in employment (and correspondingly the smallest increases in unemployment) during the crisis can be expected in countries where the EPL indexes and share of those employed on fixed-term employment contracts in total employment are moderate.


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