Labor Economics Commons^™

Complementarity And Custom In Wage Contract Violation, John S. Earle, Klara Sabirianova Peter

Upjohn Institute Working Papers

We analyze a model of wage delay in which strategic complementarity arises because each employer's costs of violating its contracts decrease with the arrears in its labor market. The model is estimated on panel data for workers and firms in Russia, facilitating identification through fixed effects for employees, employers, and local labor markets, and instrumental variables based on policy interventions. The estimated reaction function displays strongly positive neighborhood effects, and the estimated feedback loops - worker quits, effort, strikes, and legal penalties - imply that costs of wage delays are attenuated by neighborhood arrears. We also study a nonlinear case …

Final Project Report: Plan For A Model Pims, Christopher J. O'Leary, Lillian Vesic-Petrovic

Upjohn Institute Technical Reports

Development of the performance information and management systems (PIMS) to monitor labor market outcomes of program participants, and guide program management of active labor market programs (ALMPs).

Nonstandard Forms And Measures Of Employment And Unemployment In Transition: A Comparative Study Of Estonia, Romania, And Russia, J. David Brown, John S. Earle, Vladimir Gimpelson, Rostislav Kapeliushnikov, Hartmut Lehmann, Álmos Telegdy, Irina Vantu, Ruxandra Visan, Alexandru Voicu

Upjohn Institute Working Papers

This paper looks behind the standard, publicly available labor force statistics relied upon in most studies of transition economy labor markets. We analyze microdata on detailed labor force survey responses in Russia, Romania, and Estonia to measure nonstandard, boundary forms and alternative definitions of employment and unemployment. Our calculations show that measured rates are quite sensitive to definition, particularly in the treatment of household production (subsistence agriculture), unpaid family helpers, and discouraged workers, while the categories of part-time work and other forms of marginal attachment are still relatively unimportant. We find that tweaking the official definitions in apparently minor ways …

Wages, Layoffs, And Privatization: Evidence From Ukraine, J. David Brown, John S. Earle, Volodymyr Vakhitov

Upjohn Institute Working Papers

This paper estimates the effects of privatization on worker separations and wages using retrospective data from a national probability sample of Ukrainian households. Detailed worker characteristics are used to control for compositional differences and to assess types of observable "winners" and "losers" from privatization. Preprivatization worker-firm matches are used to control for unobservables in worker and firm selection. The results imply that privatization reduces wages by 5 percent and cuts the layoff probability in half. Outside investor ownership reduces separations but leaves wages unaffected. Winners from privatization tend to be higher-skilled employees of larger firms, but there is no discernible …

Effects Of Eu Accession On The Politics Of Privatization - The Steel Sector In Comparative Perspective, Aleksandra Sznajder Lee

Political Science Faculty Publications

The purpose of this paper is to examine the effects of the European Union (EU) accession process on the restructuring and privatization of the steel sector of the four largest steel producers in Central and Eastern Europe (CEE), namely Poland, the Czech Republic, Romania, and Slovakia. The outcome to date for these countries' steel mills has been relatively uniform in that they have been integrated into the global production networks of some of the largest multinational steel enterprises. The pressures which brought this outcome about, however, were far from uniform. The variability in the modes of convergence is highlighted by …

Employment And Wage Effects Of Privatization: Evidence From Transition Economies, John S. Earle

Employment Research Newsletter

No abstract provided.

Trade, Capital Accumulation And Structural Unemployment: An Empirical Study Of The Singapore Economy, Hiau Looi Kee, Hian Teck Hoon

Research Collection School Of Economics

This paper studies the factors responsible for the secular decline of Singapore's unemployment rate over the period 1966-2000 in an environment of low and stable inflation rates. We introduce wage bargaining and unions into a specific-factors, two-sector economy with an export sector and a non-tradable sector to obtain an endogenous natural unemployment rate. Increases in the relative export price and capital stock in the export sector are predicted to reduce structural unemployment. These hypotheses could not be rejected based on structural estimations and co-integration regressions. Empirically, capital accumulation in the export sector explains most of the decline in Singapore's unemployment …

Evaluating Job Training In Two Chinese Cities, Benu Bidani, Chor-Ching Goh, Niels-Hugo Blunch, Christopher J. O'Leary

Upjohn Institute Working Papers

Recent years have seen a surge in the evidence on the impacts of active labor market programs for numerous countries. However, little evidence has been presented on the effectiveness of such programs in China. Recent economic reforms, associated massive lay-offs, and accompanying public retraining programs make China fertile ground for rigorous impact evaluations. This study evaluates retraining programs for laid-off workers in the cities of Shenyang and Wuhan using a comparison group design. To our knowledge, this is the first evaluation of its kind in China. The evidence suggests that retraining helped workers find jobs in Wuhan, but had little …

Analysis Of Labor Participation Behavior Of Korean Women With Dynamic Probit And Conditional Logit, Myoung-Jae Lee, Yoon-Hee Tae

Research Collection School Of Economics

We analyse the dynamic labour participation behaviour of Korean women. State dependence under unobserved heterogeneity is considered, where the heterogeneity may be unrelated, pseudo-related, or arbitrarily related to regressors. Three minor methodological contributions are made: interaction terms with lagged response are allowed in dynamic conditional logit; a three-stage algorithm for dynamic probit is proposed; and treating the initial response as fixed is shown to be ill-advised. The state dependence is about 0.6 × SD(error), higher for the married or junior college-educated, and lower for women in their twenties and thirties. While education increases participation, college education has negative effects for …

Do Government Sponsored Vocational Training Programs Help The Unemployed Find Jobs? Evidence From Russia, Anton Nivorozhkin, Eugenity Nivorozhkin

Upjohn Institute Working Papers

The study estimates the employment effect of vocational training programs for the unemployed in urban Russia. The results of propensity score matching indicate that training programs had a non-negative overall effect on the program participants relative to non-participants.

Future Job Prospects In Singapore, Hian Teck Hoon

Research Collection School Of Economics

What forces have shaped our nation’s employment and remuneration record so far? Where is Singapore’s unemployment rate headed? What should policy-makers do about it? These are the questions tackled in this paper.

Future Job Prospects In Singapore, Hian Teck Hoon

Research Collection School Of Economics

No abstract provided.

Trade, Capital Accumulation And Structural Unemployment: An Empirical Study Of The Singapore Economy, Hiau Looi Kee, Hian Teck Hoon

Research Collection School Of Economics

This paper studies the factors responsible for the secular decline of Singapore’s unemployment rate over the period 1966-2000 in an environment of low and stable inflation rates. We introduce wage bargaining and unions into a specific-factors, two-sector economy with an export sector and a non-tradable sector to obtain an endogenous natural unemployment rate. Increases in the relative export price and capital stock in the export sector are predicted to reduce structural unemployment. These hypotheses could not be rejected based on structural estimations and co-integration regressions. Empirically, capital accumulation in the export sector explains most of the decline in Singapore’s unemployment …

Methods For Evaluating Employment Programs In Sofia, Bulgaria, Christopher J. O'Leary

Conference Papers

No abstract provided.

Exploring Children’S Rights In The World Of Work, Jean N. Scandlyn

Human Rights & Human Welfare

A review of:

Children of Other Worlds: Exploitation in the Global Market by Jeremy Seabrook. London: Pluto, 2001. 166pp.

Community Norms And Organizational Practices: The Legitimization Of Wage Arrears In Russia, 1992-1999, John S. Earle, Andrew Spicer, Klara Sabirianova Peter

Upjohn Institute Working Papers

What role do community norms play in the diffusion and persistence of new organizational practices? We explore this question through an examination of the widespread practice of wage arrears, the late and non-payment of wages, in Russia during the 1990s. Existing research on wage arrears most often examines this practice as a means of flexible wage adjustment under difficult economic conditions. We develop an alternative theory that explains wage arrears through their acceptance as a legitimate form of organizational behavior within local communities. Our empirical analysis finds some support for the neoclassical position that wage arrears reflect adjustment to negative …

Income And Influence: Social Policy In Emerging Market Economies, Ethan B. Kapstein, Branko Milanovic

Employment Research Newsletter

No abstract provided.

Service Links And Wage Inequality, Kong Weng Ho, Hian Teck Hoon

Research Collection School Of Economics

In our general equilibrium model, the variety of specialized service links affects international production fragmentation in manufacturing. Decreases in cost of education or fixed cost of service links raise the relative supply of skilled workers, increase service specialization, and decrease the price of aggregate services. Consequently, the market for service- and skill-intensive component manufacturing enlarges, raising relative demand for skilled workers. Empirically, endogenous change in international outsourcing rather than skill-biased technological progress is the main reason for a modest decline in wage gap despite the rapid rise in relative supply of skilled workers in Singapore from 1978 to 2000.

Job Reallocation And Productivity Growth Under Alternative Economic Systems And Policies: Evidence From The Soviet Transition, J. David Brown, John S. Earle

Upjohn Institute Working Papers

How do economic policies and institutions affect job reallocation processes and their consequences for productivity growth? This paper studies the extreme case of economic system change and alternative transitional policies in the former Soviet Republics of Russia and Ukraine. Exploiting annual industrial census data from 1985 to 2000, we find that Soviet Russia displayed job flow behavior quite different from market economies, with very low rates of job reallocation that bore little relationship to relative productivity across firms and sectors. Since liberalization began, the pace, heterogeneity, and productivity effects of job flows have increased substantially. The increases occurred more quickly …

Evaluating Labor Market Performance: Employment Reallocation And Productivity Growth In Russia, John S. Earle

Employment Research Newsletter

No abstract provided.

How Late To Pay? Understanding Wage Arrears In Russia, John S. Earle, Klara Sabirianova Peter

Upjohn Institute Working Papers

We organize an empirical analysis of Russian wage arrears around hypotheses concerning factors that create incentives for firms to pay late and for workers to tolerate late payment, both reinforced by a prevalent environment of overdue wages. Our analysis draws upon nationally representative household panel data matched with employer data to show substantial interfirm variation with the probability of arrears positively related to firm age, size, state ownership, and declining performance. Estimation of a constrained multinomial logit model also reveals intrafirm, variation related to job tenure and small shareholdings in the firm. Workers tend to have higher arrears in rural …

Evaluating Active Labor Market Programs In Transition Economies, Christopher J. O'Leary

Conference Papers

No abstract provided.

Evaluating The Effectiveness Of Active Labor Programs In Hungary, Christopher J. O'Leary

Upjohn Institute Technical Reports

No abstract provided.

Evaluating The Effectiveness Of Active Labor Programs In Poland, Christopher J. O'Leary

Upjohn Institute Technical Reports

No abstract provided.

Culture, Ideology, And Community: The Dynamics Of Accommodation And Resistance To Restructuring Of The Mexican Sugar Sector, Donna Chollett

Anthropology Publications

Neoliberalism has provoked profound and diverse consequences for rural Mexico, escalating the agricultural crisis for producers and workers in various sectors. Against this context, recent improvements in the sugar sector raise interesting questions about its relative economic success under the neoliberal paradigm. This article contrasts two cane zones--one that experienced economic recovery and another affected by abandonment of the sugar mill--to argue that in the interstices of modernizing neoliberalism, cane growers and mill workers who were subjected to politics of exclusion struggle to ensure the survival of their culture, community, and economic livelihood.

Suggested Rules For An Unemployment Insurance Law For Poland, Christopher J. O'Leary

Upjohn Institute Technical Reports

No abstract provided.

Performance Management Of Active Labor Programs In Eastern Europe, Christopher J. O'Leary

Employment Research Newsletter

No abstract provided.

Workers, Trade Unions And The State In Egypt, 1984-1989, Omar El Shafei

Faculty Books

In the last paragraph of their masterpiece on the Egyptian workers' movement, Workers on the Nile, Joel Beinin and Zachary Lockman suggested that "[t]he strike and riot of textile workers in Kafr al-Dawwar in September 1984 may signal an end to the period of relative economic peace and labor quiescence" in Egypt. Their expectation turned out to be true. The 1984 upheaval in Kafr al-Dawwar was followed by five years of intensifying workers' struggle throughout Egypt. This culminated in two major sit-ins at the Helwan Iron and Steel Company in July and August 1989. Two salient aspects of this period …

Restructuring The Mexican Sugar Industry: Campesinos, The State, And Private Capital, Donna Chollett

Anthropology Publications

Under the new agrarian policies and economic rules of Article 27, implemented in January 1992, the customary patters of political patronage and loyalty in the countryside no longer operate as before. Campesions now are challenged to think and act like entrepreneurs who assume investment risks in order to successfully participate in competitive markets. But most possess neither the economic resources nor worldviews to be the “campesino entrepreneurs” sought by the government or by the leaders of the Confederación Nacional Campesina (CNC) and the Confederación Nacional de Productores Rurales (CNPR), the two campesino confederations affiliated to the ruling PRI. This contradiction …

An Impact Analysis Of Employment Programs In Hungary, Christopher J. O'Leary

Upjohn Institute Working Papers

This paper presents estimates of the impact of retraining and public service employment (PSE) on reemployment and earnings in the Republic of Hungary during the early phase of post-Socialist economic restructuring. Since assignment to programs resulted in groups with vastly dissimilar characteristics, impact estimates were computed using a variety of methods. Controlling for observable characteristics, retraining may have slightly improved the chances for reemployment in a non-subsidized job, but the gain in reemployment was probably not sufficient to justify the cost of retraining. However, since the durability of jobs appears to be better for those who were retrained, the long …