scholarly journals The Impact of Employment Protection on the Industrial Wage Structure

2018 ◽  
Author(s):  
John S. Heywood ◽  
Mary O'Mahony ◽  
Stanley Siebert ◽  
Ana Rincon-Aznar
Keyword(s):  
Wage Structure ◽  
Employment Protection ◽  
Industrial Wage ◽  
The Impact

The Effects of Employment Protection legislationon Personnel Policies: A Review of Theoretical Modelsand Empirical results

2014 ◽  
pp. 126-140
Author(s):  
O. Mironenko
Keyword(s):  
Personnel Selection ◽  
Selection Criteria ◽  
Theoretical Models ◽  
Employment Protection ◽  
Empirical Results ◽  
Protection Legislation ◽  
Labour Contracts ◽  
Hiring And Firing ◽  
The Impact ◽  
Personnel Policies

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.

scholarly journals Impacts of Labor Market Institutions and Demographic Factors on Labor Markets in Latin America

2019 ◽  
Vol 19 (155) ◽  
Author(s):  
Adriana Kugler
Keyword(s):  
Labor Market ◽  
Latin American ◽  
Older Workers ◽  
Market Performance ◽  
Demographic Factors ◽  
Employment Protection ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Payroll Taxes ◽  
The Impact

This paper documents recent labor market performance in the Latin American region. The paper shows that unemployment, informality, and inequality have been falling over the past two decades, though still remain high. By contrast, productivity has remained stubbornly low. The paper, then, turns to the potential impacts of various labor market institutions, including employment protection legislation (EPL), minimum wages (MW), payroll taxes, unemployment insurance (UI) and collective bargaining, as well as the impacts of demographic changes on labor market performance. The paper relies on evidence from carefully conducted studies based on micro-data for countries in the region and for other countries with similar income levels to draw conclusions on the impact of labor market institutions and demographic factors on unemployment, informality, inequality and productivity. The decreases in unemployment and informality can be partly explained by the reduced strictness of EPL and payroll taxes, but also by the increased shares of more educated and older workers. By contrast, the fall in inequality starting in 2002 can be explained by a combination of binding MW throughout most of the region and, to a lesser extent, by the introduction of UI systems in some countries and the role of unions in countries with moderate unionization rates. Falling inequality can also be explained by the fall in the returns to skill associated with increased share of more educated and older workers.

The effect of partner buffering on the risk of unemployment in Finland

2018 ◽  
Vol 38 (11/12) ◽  
pp. 982-1007
Author(s):  
Oxana Krutova ◽  
Pertti Koistinen ◽  
Tapio Nummi
Keyword(s):  
Sociological Theory ◽  
Labour Force ◽  
Multilevel Modelling ◽  
Employment Protection ◽  
Active Labour Market Policy ◽  
Content Type ◽  
Dual Earner ◽  
Partner Effect ◽  
Unemployment Risk ◽  
The Impact

PurposeThe purpose of this paper is to outline the study to determine whether the dual earner model better offsets the actual risk of unemployment compared to other household models.Design/methodology/approachThe authors linked the partner effect (household type) with macroeconomic institutional settings, such as employment protection, the active labour market policy, economic growth rate and globalisation, to study how these micro- and macro-level factors influence the unemployment risk of individuals.FindingsUsing European Labour Force Survey (EU-LFS) microdata for Finland from 2005 to 2013 and a multilevel modelling technique, the authors found that the partner effect is an important regulator of unemployment risks, but the effect is modified by institutional factors. Dual earners and breadwinners experience a less significant effect from employment protection legislation regulation and other external factors on the increase or decrease in unemployment risk compared to singles. The authors also found that unemployed singles are more exposed and vulnerable to fluctuations caused by economic events.Originality/valueIn this way, this paper contributes to the sociological theory of labour markets and a better understanding of how different household types buffer and mediate the risks of unemployment. The authors used the EU-LFS and novel multilevel analysis statistical solutions to determine the impact of macro- and micro-level factors. The case of Finland may also be of broader interest to researchers and policy-makers because of the long and strong tradition of the dual earner employment pattern and strong macro-economic fluctuations.

A study of the relationship between employee wage and commercial banks efficiency in China

2016 ◽  
Vol 7 (2) ◽  
pp. 147-159
Author(s):  
Jiangtao Li ◽  
Jianyue Ji ◽  
Yanxia Wang
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Calculated Data ◽  
Wage Structure ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

Purpose Efficiency of a commercial bank affects both its competitiveness and the role it plays in the process of economic development. Although great efforts have been exerted in developing the various aspects of banking efficiency, there seems to be a lack of research on examining the impact of the bank efficiency from the employee wage perspective. The mechanism of how employee wage affects commercial bank efficiency and the relationship between the two were analyzed in this paper. Based on the growing body of research on efficiency in banking, the aim of this paper is to examine if competitiveness of employee wages at any commercial bank has any impact on the bank efficiency score. Design/methodology/approach The method used was quantitative analysis, which was based on comparing the evaluated efficiencies of the banks with employee wages published in the bank reports. The empirical data in this paper were based on 16 Chinese listed commercial banks from 2004 to 2012. The per capita wage of commercial banks was selected as the wage indicator, and the efficiency value obtained by the slack-based measure (SBM) model was selected as the efficiency indicator. According to the calculated data, the Tobit regression model was built to analyze the relationship between employee wage and commercial bank efficiency. Findings The research results show that employee wage is the key variable that influences the efficiency of Chinese commercial banks, and the inverted U-shaped relationship between employee wage and commercial banks efficiency shows up. Practical implications The wage structure data of the composition of basic pay and bonus were not available at the time of conducting the research. Per capita wages were used instead to reflect the employee wage levels of Chinese banks. Originality/value This study can provide some help for the banking industry by analyzing the wage levels from the perspective of efficiency and also further enriches the theoretical system of the relationship between employee wage and bank efficiency.

The Impact of IRCA on the Job Opportunities and Earnings of Mexican-American and Hispanic-American Workers

1998 ◽  
Vol 32 (1) ◽  
pp. 79-95 ◽  
Author(s):  
Alberto Dávila ◽  
José A. Pagán ◽  
Montserrat Viladrich Grau
Keyword(s):  
At Risk ◽  
Mexican American ◽  
Negative Impact ◽  
White Male ◽  
Wage Structure ◽  
Wage Distribution ◽  
Hispanic Workers ◽  
Using Data ◽  
The Impact ◽  
Hispanic White

This article studies the earnings gap between Mexican, Hispanic and non-Hispanic white male workers resulting from changes in both the wage structure and immigration laws that occurred during the 1980s. Our results suggest that Mexican and Hispanic workers were adversely affected by these two changes. Using data from the 1980 and 1990 One Percent Public Use Microdata Samples, we show that these “at-risk” workers minimized the negative impact of the increases in the returns to skill by gaining in the non-Hispanic white residual wage distribution. We conclude that at-risk workers increased their work effort to lessen the effects of Act-induced employment losses. Using 1983–1992 data from the National Longitudinal Survey of Youth and EEOC data for this period, we provide support for this contention.

China's employment stabilization policies in response to the impact of the COVID-19 pandemic

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haomiao Zhang
Keyword(s):  
Design Methodology ◽  
Social Insurance ◽  
Employment Protection ◽  
Employment Relationship ◽  
Policy Framework ◽  
Future Directions ◽  
Employment Structure ◽  
Content Type ◽  
Stabilization Policies ◽  
The Impact

PurposeThe purpose of this paper is to investigate China's employment stabilization policies in response to the coronavirus disease 2019 (COVID-19) pandemic and to discuss the accessibility of these policies in practice. In addition, by focussing on the problems and dilemmas encountered during the implementation of these policies, this paper proposes some future directions for reforming employment protection and social insurance to adapt to the changing employment structure and mode in China.Design/methodology/approachThe design and methodology of this paper utilises open sources and documentary materials on China's employment stabilization policies, employment protection and social insurance measures.FindingsThe employment stabilization policies/measures launched during the COVID-19 pandemic were formulated under an initial policy framework designed only for employees in a definite employment relationship and do not match the current employment structure and model. As a result, the accessibility of employment stabilization policies/measures is limited because some worker groups that are the most affected are not covered by the policies.Originality/valueThis paper provides timely analysis on the China's employment stabilization policies and evaluates the accessibility of these policies.

scholarly journals Employment Protection Deregulation and Labor Shares in Advanced Economies

2020 ◽  
pp. 1-44
Author(s):  
Gabriele Ciminelli ◽  
Romain Duval ◽  
Davide Furceri
Keyword(s):  
Employment Protection ◽  
Elasticity Of Substitution ◽  
Negative Effects ◽  
Labor Share ◽  
Advanced Economies ◽  
The Impact ◽  
Identification Strategy

This paper assesses the impact of job protection deregulation on the labor share in a sample of 26 advanced economies during the 1970-2013 period, using a newly constructed dataset of major reforms in this area. We employ a difference-indifferences identification strategy using two identifying assumptions grounded in theory – deregulation has larger effects in industries characterized by (i) a higher ‘natural’ propensity to regularly adjust the workforce, and (ii) a lower elasticity of substitution between capital and labor. We find significant negative effects of deregulation on the labor share, contributing to about a tenth of its observed decline in advanced economies.

Asymmetric Labor Market Reforms: Effects on Wage Growth and Conversion Probability of Fixed-Term Contracts

ILR Review ◽  
2017 ◽  
Vol 71 (3) ◽  
pp. 760-788 ◽  
Author(s):  
Marta Silva ◽  
Luis Filipe Martins ◽  
Helena Lopes
Keyword(s):  
Regime Switching ◽  
Wage Growth ◽  
Employment Protection ◽  
Hourly Wage ◽  
Regime Switching Model ◽  
Switching Model ◽  
Term Contract ◽  
Labor Market Reforms ◽  
The Impact ◽  
Employee Data

The authors investigate the impact of a change in employment protection laws in Portugal that increased the maximum legal duration of fixed-term contracts. They find that this reform led to a reduction in the probability that a worker on a fixed-term contract would be converted to a permanent contract. In addition, those workers who had their contracts converted experienced a significantly higher hourly wage growth at the time of conversion and faced a lower reduction in wage growth during the years in which the changed legislation was in force. Consequently, the implementation of this law led to a 27% increase in the wage-growth differential between the two contracts. The findings are based on an endogenous regime-switching model using rich administrative linked employer–employee data.

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