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Labour Policies In The DMP Model—A Theoretical Analysis

Labour Policies In The DMP Model—A Theoretical Analysis

Abstract: In this paper we examine different types of labour policies in the benchmark model of DMP in both cases where job-destruction rate is exogenous and endogenous. Our theoretical results show that the labour market tightness and the unemployment rate would be more volatile if job-destruction is endogenous.

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Farewell to flexicurity? Austerity and labour policies in the European Union

Farewell to flexicurity? Austerity and labour policies in the European Union

22 However, we have also emphasised that groupings are not static and that change occurs between them and also within them. Shared tendencies have been apparent across countries in different clusters, particularly since the start of the economic crisis. Reductions in social benefits have occurred in several EU member states, including Ireland, Germany and Hungary (Wagner, 2011), which the comparative institutional analysis literature typically portrays as representing different institutional types. Cuts and greater restrictions in respect of unemployment benefits have been implemented and other benefits, such as family allowances and sickness benefits, have also been reduced (Laulom et al., 2012; Author B, 2013). Tighter constraints on government spending have created a further incentive for governments to focus on supply-side reforms in the hope of stimulating growth in jobs and the economy. Notable in this regard has been the widespread assault on employment protections (Schömann, 2014, Author B, 2014), which has involved reductions in severance pay, longer probation periods and increases in the freedom of employers to set dismissal criteria. Again this development has been seen in countries that are normally associated with different institutional families (e.g. Greece, Ireland, Spain, Portugal, Italy, Romania, Lithuania, Hungary and the UK). We argue that these changes have produced a greater similarity in approaches to the key flexicurity pillars within the EU. This argument does not imply that policies are necessarily converging in terms of their detailed content or results. Our argument is that functions and goals have become more similar (see also Baccaro and Howell 2014). Further research would be required in order to establish whether the trajectories of change we have highlighted are resulting in convergent or divergent outcomes.
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State Intervention and Labour Market in India: Issues and Options

State Intervention and Labour Market in India: Issues and Options

The labour policies have been applicable to the organised private sector as well, especially for the factories. However, as rational employers, they have faced the laws as restrictions imposed on their decision making process and have attempted to maximise their returns nevertheless. Firstly, rules regarding closure of enterprises entail substantial compensation for retrenchment. Secondly, temporary or casual labour is used cautiously as after a specified time of employment they would be deemed to be permanent and entitled to higher benefits. Thirdly, wage legislations have raised the cost of hiring workers – both current wages and present value of future benefits that are to be offered to the workers in cash and kind. Such wage legislations are also practically exogenous in nature – pay revisions for government employees take place at regular intervals; this leads to wage revisions in PSUs; there is a demand for wage revision in private sector as well and real wages are revised upwards. Thus the employers face a peculiar dilemma – once they hire someone they cannot fire her; the costs of retaining is substantial and ever increasing, having no link with productivity and profitability; the cost of retrenchment (if permitted) is exorbitantly high. All these push cost of labour far above the prevalent wage level and makes labour relatively dearer compared to capital, or at least the relative price of labour compared to capital goes on increasing.
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A Review of Child Labour Laws. of Barbados - a Guide to Legislative Reform

A Review of Child Labour Laws. of Barbados - a Guide to Legislative Reform

By Caribbean standards, Barbados has a fairly homogenous society with a buoyant economy. It has experienced stable social economic and political transition and development from colonialism to independence. It has not had to address or manage the fractious issues of race or class or poverty or illegal migration or border problems to the extent that has affected some other Caribbean countries. Not surprisingly, it has had a venerable tradition of democratic government and a good record of social partnership. Unlike other Caribbean countries, the Government, the employers’ confederation and the trade union confederation have negotiated Five Protocols, dating from 1993, which established an agreed framework to address the fundamental economic and social issues affecting society. It has embraced a consensual approach to the formulation of labour policies.
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Labour Market Policies and Recruitment in Europe and Italy

Labour Market Policies and Recruitment in Europe and Italy

The various labour policies are well-summarised in the EUROSTAT docu- ments. The European organisation classifies Labour Market Policy (LMP) into three main categories: services, measures and support. The first category— services—covers all activities carried out by Public Employment Services (PES) and other publicly-funded entities, and includes the items: “public and private employment services” and “orientation and job search assistance programs” il- lustrated in Table 1. The second category—measures—covers a series of inter- ventions aimed at providing people with new skills and work experience for the pursuit of two purposes: 1) to improve their employability and 2) to encourage employers to create and maintain jobs and hire the unemployed and other target groups. Included in this category are the items “basic and professional training” and all the “incentives” illustrated in Table 1. Finally, the third category—support —covers income integration measures for those who are partially or totally un- employed and measures to fund early retirement. These are measures classified as passive policies [38].
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Programme for Research and Actions on the Development of the Labour Market  Youth Unemployment Policies

Programme for Research and Actions on the Development of the Labour Market. Youth Unemployment Policies.

CHAPTER I 86230 9 b although some specific labour policies appear to have had positive effects, the whole of public policies, the associated consistent strategies adopted in industrial r[r]

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Job Insecurity and Well-being in Rich Democracies

Job Insecurity and Well-being in Rich Democracies

The transformation of employment relations represented by the recent rise of precarious work presents important challenges for individuals, families, businesses and societies. The growth of insecure, uncertain jobs that have few social and legal protections departs from the more stable, standard employment relations of the three decades after World War II. We must be careful not to glamorise this earlier era of relative stability and high economic growth, as it was much more beneficial to white men than for women and minorities. Nevertheless, we are now in a different era, a new age of precarious work that represents a fundamental shift toward widespread uncertainty and insecurity. People who have the skills and resources to navigate successfully rapidly changing labour markets have welcomed this new era as an opportunity to achieve their market potential by moving between organisations. Others, perhaps the majority, are more economically insecure, often have difficulties in forming families, and experience low subjective well-being.
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The Impact of Labour Market Policies on Productivity in OECD Countries

The Impact of Labour Market Policies on Productivity in OECD Countries

Pro-employment policy reforms, however, can also directly affect productivity through a number of channels. First, policies that influ- ence incentives for workers or firms to invest in training or education can affect productivity by altering the stock of human capital. Second, pol- icies that encourage the movement of resources between declining and emerging firms, indus- tries or activities can enhance productivity by helping firms respond quickly to changes in technology or product demand. Third, policies that improve the quality of job matches or main- tain high-quality job matches for longer can increase the effectiveness of labour resource allocation, increasing the level of productivity. Fourth, policies that make labour more expen- sive relative to capital can affect the direction and pace of technological change. Finally, poli- cies that reduce social conflict can condition workers’ effort and their willingness to align their behaviours with their employer’s objec- tives. Employment-enhancing policies can also have an indirect impact on aggregate productiv- ity by reducing spending on social support and making room for more public or private spend- ing on education, research and development or other productivity-enhancing activities.
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EDUCATION Ph.D. in Economics June 1998 University of Aarhus, Denmark

EDUCATION Ph.D. in Economics June 1998 University of Aarhus, Denmark

Evaluation of Active Labour Market Policies ; Active labour market programmes, unemployment insurance benefits, meetings between clients and case workers, counseling and monitoring, thr[r]

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COMMISSION STAFF WORKING DOCUMENT. Report on the EURO AREA. {COM(2015) 85 final}

COMMISSION STAFF WORKING DOCUMENT. Report on the EURO AREA. {COM(2015) 85 final}

• Coordination of fiscal policies remains sub-optimal. The aggregate fiscal picture in the euro area has improved considerably since the crisis began and the aggregate fiscal stance is broadly neutral, which could be considered as an acceptable balance between ensuring sustainability and stabilising the business cycle. However, there are large differences among Member States, which do not always reflect the size of fiscal challenges and their obligations under the Stability and Growth Pact (SGP). While some countries fall short of their SGP obligations, others still have room for manoeuvre under the SGP rules. Improved coordination would support growth in the euro area as a whole if those Member States which do not have fiscal space would make efforts to regain it, and those Member States that do have fiscal space use the opportunity to encourage domestic demand, with a particular emphasis on investment. Potentially large and beneficial spillover effects on growth could be generated through more coordinated action. Using the flexibility of the SGP rules will support Member States in implementing their investment plans and structural reforms. Fiscal strategies are not yet sufficiently growth-friendly. On the revenue side, tax systems are not yet efficient enough and taxes on labour are too high, in spite of recent improvements encouraged by increased coordination within the Eurogroup. On the expenditure side, public investment backed by sound cost-benefit analysis and other public expenditure with strong and positive growth effects is too low. Spending reviews have emphasised the need for efficiency gains in public administration.
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Trade liberalization, social policies and health: an empirical case study

Trade liberalization, social policies and health: an empirical case study

While causal mechanisms could not be constructed in relation to these final solution paths, it is still worth dis- cussing some of the results to come out of the process tracing efforts. For example, it was found that T&C em- ployment loss in the Kyrgyz Republic was largely offset by T&C employment growth within the informal sector [82]. Moreover while the Kyrgyz Republic is character- ized in the fsQCA as having protective labour market policies, any workers losing their formal employment were unlikely to have been able to access related social provision [83]. One reason for this is that workers were likely to be employed in smaller establishments and, as in Italy, labour regulations exclude from their provisions firms with fewer than 15 employees [63]. In relation to China and Thailand, results were very similar to those discussed in relation to Bangladesh, employment growth was found to have occurred both in the context of poor working conditions and weak labour market and social provisions [84–86]. In Thailand however, growth in T&C employment was seen to occur mainly in informal and migrant labour [87]. Finally, both Sri Lanka and Indonesia were found to have some form of social pro- tection aimed at T&C workers, despite overall poor working conditions [88, 89]. In both countries, this pro- tection comes from employment contribution schemes whereby workers are able to withdraw benefits under various circumstances related for instance to retirement, employment loss and medical reasons. However, the de- gree to which these regulations are adhered to is suspect [90].
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Active Labour Market Policies and Unemployment Convergence in Transition

Active Labour Market Policies and Unemployment Convergence in Transition

In the empirical literature of unemployment rate characteristics, one can find a number of differen- tiated approaches towards the unemployment rate dynamics and persistence as well as distribution (cfr. Decressin and Fatas (1995), Obstfeld and Peri (1998) or more recently Armstrong and Taylor (2000)). Perugini, Polinori and Signorelli (2005) use NUTS2 level data and inquire the regional differentiation of Poland and Italy. Marelli (2004) focuses on specialisation for NUTS2 EU regions with tripartite desaggre- gation (industrial, agricultural and service sectors) reaching the conclusion that convergence in economic structures occurs, while income does not. However, Marelli (2004) analyses predominantly income and economic convergence and not explicitly the underlying fundamentals (like, for example, labour markets performance). Overman and Puga (2002) perform conditional kernel density analyses of European un- employment rates taking into account the distributions of underlying fundamentals (eg. the skills, the regional specialisation as well as the growth rates of population and the labour force).
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A review of active and passive labour market policies in Spain

A review of active and passive labour market policies in Spain

The process of decentralising ALMP competence to the autonomous communities took place at different times, which implies differentiated experience in management. The experience and the knowhow of each autonomous community is diverse, and therefore the implementation of ideas in the SNE is becoming a fundamental aspect. Cooperation among various administrations is essential to improve performance. The decentralisation of competence does not necessarily lead to coordination problems between passive and active policies. A clear regulatory framework is necessary, along with established achievable goals. Furthermore, the political will to cooperate is essential. Additionally, both organizations, SEPE and regional PES must ensure they have the necessary human resources to provide services (especially counselling) to all the jobseekers.
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Agricultural Dualism, Incidence of Child Labour and Subsidy Policies

Agricultural Dualism, Incidence of Child Labour and Subsidy Policies

Available empirical evidences suggest that the concentration of child labour is the highest in the rural sector of a developing economy and that child labour is used intensively directly or indirectly in the agricultural sector 2 . In backward agriculture, the production techniques are primitive, use of capital is very low and child labour can almost do whatever adult labour does. Farming in backward agriculture is mostly done by using bullocks and ploughs and the cattle- feeding is entirely done by child labour. Besides, at the time of sowing of seeds and harvest children are often used in the family farms for helping adult members of the family. The advanced agricultural sector on the other hand uses mechanised techniques of production and uses agricultural machineries like tractors, seeders/planters, sprayers and harvesters etc. and therefore does not require child labour in its production process. This type of agricultural dualism is a very common feature of the developing countries. The distinction between advanced and backward agriculture can be made on the basis of inputs used, economies of scale, efficiency and elasticity of substitution. Many of the farmers in the agricultural sector of a developing economy stick to old and unscientific methods of cultivation although in other parts of the economy the introduction of the so called ‘Green Revolution’ technology brought about revolutionary changes with respect to production technologies and use of modern inputs and the increase in factor productivity. However, the improved technology was designed for the best areas (irrigation, high
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What Can Active Labour Market Policies Do?

What Can Active Labour Market Policies Do?

Evaluations of job search assistance and monitoring in Ireland have been quite limited, and have mainly centred on the National Employment Action Plan (NEAP). The NEAP requires those who have been unemployed for a period of three months to be referred by the Department of Social Protection (DSP) to FÁS, Ireland’s national employment and training authority, for interview, which in turn can initiate further assistance with job search, guidance, counselling, referral to employment or, in some cases, training or other ALMPs. Early evaluations of the NEAP were positive but hampered by the absence of adequate data to support rigorous econometric analysis (O’Connell, 2002a; Indecon, 2005). Grubb et al. (2009) argued that the separation of income support and employment placement services undermined the potential for activation, as did the virtual absence of sanctions and the under-resourcing of activation services. A recent evaluation of the NEAP as it operated between 2006 and 2008 (McGuinness, O’Connell, Kelly and Walsh, 2011), found that there were problems of access to NEAP programmes with the result that not all those who should have participated in an activation measure did so. A substantial group of jobseekers, about 25 per cent, who were eligible for assistance under the NEAP were not identified and referred. Another group, over 25 per cent, were not eligible for NEAP referral because they had received some form of assistance in a previous unemployment spell. This practice of excluding those who went through the NEAP process during a previous period of unemployment would appear to run counter to the underlying rationale of activation policies: to assist those most likely to encounter difficulties in finding work. The evaluation also showed that those who participated in the NEAP activation interview were less likely to become employed: comparing the outcomes of those who were referred for a FÁS interview under the NEAP,
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Migration, Employment and labour Market integration Policies in France

Migration, Employment and labour Market integration Policies in France

The French authorities would select occupations that suffer from “extensive and structural” labour shortages for which the indicator of tension was equal to or greater than one. This selection is based on the répertoire opérationnel des métiers (ROME- operational database of occupations) used by the Pôle Emploi. However, potential challenges to the efficiency of this approach may include the following:

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Labour market flows and labour market policies in the British Isles, Poland and Eastern Germany since 1980

Labour market flows and labour market policies in the British Isles, Poland and Eastern Germany since 1980

industrial enterprises over the period 1983-88 to try to test empirically a simple neoclassical approach to the socialist labour market. We describe here our initial investigations; the results reported are preliminary at best and can only be taken as suggestive of how the Polish labour market operated in the 1980s and of the directions further research should take. Our approach is as follows. First, we estimate directly an enterprise production function, allowing for firm-specific fixed effects. The resulting estimated marginal products of labour are then compared to the wage paid by enterprises. Our results indicate that for most enterprises, the MPL exceeds the wage by a considerable margin. The second step in our investigation is to look at the rate of change of employment in the majority of enterprises for which the MPL exceeds the wage and in that small but still substantial minority of enterprises for which the wage exceeds the MPL. One implication of the simple neoclassical approach is that the latter group of enterprises should try to shed labour. It turns out nearly half of these enterprises actually increased their employment Put another way, the simple neoclassical explanation of labour shortage in socialist economies fails not because wages are low relative to the marginal products of labour-they are—but because the labour demanded by socialist firms does not appear to be consistent with profit maximization.
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Reviewing development of active labour market policies and the evaluation techniques

Reviewing development of active labour market policies and the evaluation techniques

costs are lower than for the other measures. Training programs for the unemployed can also have a positive impact on employability, but not on earnings. These programs are most effective when conducted in on-job. Other types of training - for workers who became unemployed as a result of mass layoffs and youth participants in the labour market generally give less favorable results. Interventions that are successful often include several measures (education, employment, social assistance, if needed), which complement the training. The review also proved the weak effects of job creation - employment subsidies and public works. Also, Public Works have shor-time positive effects, but in most cases do not increase the employability of participants after the completion of measures. Finally it was confirmed that projects of subsidies for self-employment have a positive impact on the small number of users, but these are mainly people with higher education levels.
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Simulating the enforcement policies for irregular sector in the Italian labour reform

Simulating the enforcement policies for irregular sector in the Italian labour reform

The traditional litterature about the optimal enforcement policy [Becker 1968; Shavell, 1993; Mitchell Polinsky, Shavell, 2000], represents the theoretical foundation that points out the contradictory choice of this reform: it does not represent the best way to prevent irregular economy, above all because it reduces the sanctions for irregular firms, while increasing the resources for control activ- ities. For instance, Becker has shown that, from the social welfare standpoint, it is always optimal to substitute a higher sanction for a lower control level, and that punishment should be optimally set at its maximum level. The results of tests confirm this critical judgement and the inconsistent political choice of reducing the level of sanctions, showing, on the contrary, that it represents the best instrument to enforce the irregularity. The next section illustrates the results of the policies of control, sanctions and social legitimacy of regulation.
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The development of labour market policies: Comparing long term policy change in the British Labour Party and the Sozialdemokratische Partei Deutschlands

The development of labour market policies: Comparing long term policy change in the British Labour Party and the Sozialdemokratische Partei Deutschlands

of traditional Keynesian-led labour market policy approaches had been lost.55 As convincingly argued by Gosta Esping-Andersen, the "welfare state and labour market regulations have their origins in, and mirror, a society that no longer obtains: an economy dominated by industrial production with strong demand for low-skilled labour; a relatively homogenous and undifferentiated, predominantly male labour force," meaning that policy ideas responding to conditions, egalitarian ideas and risk profiles that were dominant during the 1950s and 60s had undergone dramatic change since.56 This view has been supported in the case of Germany - by observers such as Claus Offe, who has been pointing for some time to institutionalised 'Fehlkonstruktionen' (faulty constructions) within the German welfare system. Apart from 'benefit traps' that discourage people to seek low paid employment - which are also common within the British system - Offe has been pointing at traditional welfare state and institutionalised 'faulty' procedures within them.57 These include, for instance, in the case of Germany, local authorities that are strongly tempted to offer (nonessential) short-term employment to 'Sozialhilfeempfanger' (income support claimants, usually long-term unemployed) in order to make sure that they can cla im ' Arbeitslosen Hilfe' (employment benefits) after six month, which are paid by the federal government, hence saving the regional community expenditure on the locally financed 'Sozialhilfe'. This procedure may make sense for local administrations as it saves them money in the medium-term, but it exaggerates financial inefficiencies within the welfare system. Federal money could have, for instance, been spent far more effectively on measures to reduce unemployment, while the local jobs on offer were usually not helping those unemployed to improve their medium-term career prospects, nor were they of any use in tackling structural unemployment. Although these kinds of developments cannot be blamed necessarily on the social democratic welfare state, they are nevertheless symptoms of a welfare system that has grown increasingly unsustainable and requires active state attempts to reform it. The fact that 'N ew Labour' and the SPD promised to deal with them clearly indicates that both parties had changed their perceptions of the welfare state before regaining office in 1997/98.
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