Explaining the labor market gaps between immigrants and natives in the OECD

2017 ◽  
Vol 14 (2) ◽  
pp. 251-262
Author(s):  
Andreas Bergh
Keyword(s):  
Labor Market ◽  
Bayesian Model Averaging ◽  
Labor Market Outcomes ◽  
Model Averaging ◽  
Oecd Countries ◽  
Economic Benefits ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Market Outcomes ◽  
Native Workers

In most OECD-countries immigrants have lower employment and higher unemployment than natives. The gap in labor market outcomes is larger in countries with more immigrant friendly attitudes. This paper suggests that in countries where labor market institutions are less competitive, native workers face less direct wage competition from immigration. As a result, the general population is more immigrant-friendly and income inequality is dampened. On the other hand, employment among immigrants suffers, thwarting the potential economic benefits from immigration. Empirical analysis of 19–28 OECD countries using Bayesian model averaging to cope with the model selection problem, provide support for the relevance of labor market institutions against other plausible explanations of immigrant labor market outcomes. In particular, the unemployment gap is bigger in countries where collective bargaining agreements cover a larger share of the labor market.

REDUCING INCOME INEQUALITY WHILE BOOSTING ECONOMIC GROWTH: CAN IT BE DONE? EVIDENCE FROM OECD COUNTRIES

2014 ◽  
Vol 59 (01) ◽  
pp. 1450001 ◽  
Author(s):  
PETER HOELLER ◽  
ISABELLE JOUMARD ◽  
ISABELL KOSKE
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Income Inequality ◽  
Oecd Countries ◽  
Gdp Per Capita ◽  
Labor Market Institutions ◽  
Policy Reforms ◽  
Market Institutions ◽  
Trade Off ◽  
Per Capita

This paper identifies inequality patterns across Organisation for Economic Co-operation and Development (OECD) countries and provides new analysis of their policy and non-policy drivers. One key finding is that education and anti-discrimination policies, well-designed labor market institutions and large and/or progressive tax and transfer systems can all reduce income inequality. On this basis, the paper identifies several policy reforms that could yield a double dividend in terms of boosting GDP per capita and reducing income inequality, and also flags other policy areas where reforms would entail a trade-off between both objectives.

scholarly journals Unemployment in an Interdependent World

2013 ◽  
Vol 5 (1) ◽  
pp. 262-301 ◽  
Author(s):  
Gabriel J Felbermayr ◽  
Mario Larch ◽  
Wolfgang Lechthaler
Keyword(s):  
Labor Market ◽  
Labor Market Outcomes ◽  
Relative Size ◽  
Labor Market Institutions ◽  
Unemployment Benefits ◽  
Real Wages ◽  
Market Outcomes ◽  
Trade Model ◽  
Theoretical Predictions ◽  
Set Up

How do changes in labor market institutions, like more generous unemployment benefits in one country, affect labor market outcomes in other countries? We set up a two-country Armingtonian trade model with frictions on the goods and labor markets. Contrary to the literature, higher labor market frictions increase unemployment at home and abroad. The strength of the spillover depends on the relative size of countries and on trade costs. It is exacerbated when real wages are rigid. Using panel data for 20 rich OECD countries, and controlling for institutions as well as for business cycle comovement, we confirm our theoretical predictions. (JEL E24, F16, J64, J65)

scholarly journals Shoring up economic refugees: Venezuelan migrants in the Ecuadoran labor market

2021 ◽  
Author(s):  
Sergio Olivieri ◽  
Francesc Ortega ◽  
Ana Rivadeneira ◽  
Eliana Carranza
Keyword(s):  
Labor Market ◽  
Educational Attainment ◽  
Labor Market Outcomes ◽  
Market Outcomes ◽  
The Third ◽  
High Educational Attainment ◽  
Native Workers ◽  
Large Survey ◽  
High Educational ◽  
Low Wages

Abstract Ecuador became the third largest receiver of the 4.3 million Venezuelans who left their country in the last five years, hosting around 10 per cent of them. Little is known about the characteristics of these migrants and their labor market outcomes. This article fills this gap by analyzing a new large survey (EPEC). On average, Venezuelan workers are highly skilled and have high rates of employment, compared with Ecuadorans. However, their employment is of much lower quality, characterized by low wages, and high rates of informality and temporality. Venezuelans have experienced significant occupational downgrading, relative to their employment prior to emigration. As a result, despite their high educational attainment, Venezuelans primarily compete for jobs with the least skilled and more economically vulnerable Ecuadoran workers. Our simulations suggest that measures that allow Venezuelans to obtain employment that matches their skills, such as facilitating the conversion of education credentials, would increase Ecuador’s GDP between 1.6 and 1.9 per cent and alleviate the pressure on disadvantaged native workers. We also show that providing work permits to Venezuelan workers would substantially reduce their rates of informality and increase their average earnings.

scholarly journals The Development of Sectoral Worker Center Networks

2013 ◽  
Vol 647 (1) ◽  
pp. 102-123 ◽  
Author(s):  
Héctor R. Cordero-Guzmán ◽  
Pamela A. Izvănariu ◽  
Victor Narro
Keyword(s):  
Labor Market ◽  
Social Movement ◽  
Labor Market Institutions ◽  
Social Movement Organizations ◽  
Market Institutions ◽  
Market Outcomes ◽  
Worker Centers ◽  
Worker Center ◽  
Movement Organizations ◽  
The Impact

In this article, we argue that understanding the impact of economic structures on low-wage workers requires the study of emerging worker centers and networks and that individual labor market outcomes and experiences are mediated and impacted by the work of these institutions. We focus on the formation of sectoral worker center networks and address three key issues: (1) What are some of the reasons why worker centers and worker center networks have developed? (2) How do these organizations manage their roles as labor market institutions and social movement organizations? and (3) Why did worker center networks focus on employment and in particular sectors of the low-wage labor market? We find that sector-based organizing (1) facilitates the development of worker- and sector-targeted service strategies, thereby enabling low-wage worker groups and organizations to better achieve their service and policy goals; (2) maximizes opportunities for the organizations to obtain national resources; and (3) expands the reach of organizational networks by bringing organizations together to share resources and best practices. By providing a range of worker-, employment-, and labor market–centered services in specific labor market sectors, worker centers and their networks solidify their role as labor market institutions and become more effective advocacy and social movement organizations.

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