The Experts below are selected from a list of 11262 Experts worldwide ranked by ideXlab platform
Marika Karanassou - One of the best experts on this subject based on the ideXlab platform.
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Labour Market Flexibility and regional unemployment rate dynamics spain 1980 1995
Papers in Regional Science, 2009Co-Authors: Roberto Bande, Marika KaranassouAbstract:This paper aims to shed light in the dynamics of Spanish regional unemployment rates and determine the driving forces of their disparities. The Spanish economy has one of the highest unemployment rates in the EU and is characterised by severe regional disparities. We apply the chain reaction theory of unemployment according to which the evolution of unemployment is driven by the interplay of lagged adjustment processes and the spillover effects within the Labour Market system. Our model includes nationwide as well as region-specific variables, and takes into account the limited Labour and firm mobility in Spain. We show that the degree of Labour Market Flexibility differs between high and low unemployment regions, and find that investment has a major influence on the unemployment trajectory. In addition, we find that in bad times high unemployment regions are hit more severely than low unemployment regions, while in good times high unemployment regions do not benefit as much as low unemployment regions.
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Labour Market Flexibility and regional unemployment rate dynamics spain 1980 1995
ERSA conference papers, 2006Co-Authors: Roberto Bande, Marika KaranassouAbstract:This paper analyses the theoretical and empirical implications of the Chain Reaction Theory of unemployment movements on regional unemploment persistence and regional disparities. This is the first attempt to apply this theory to a regional context. The Chain Reaction Theory focuses on the interaction among Labour Market adjustment processes and the interplay of such processes and the dynamic structure of Labour Market shocks. Under this approach we may explain unemployment rate disparities between regions as the result of different responses to idyosincratic and aggregate shocks working their way through different Labour Market adjustment processes in each region. We test empirically this theory to the Spanish case with a regional dataset covering the 1980-2000 period. Our results show that the Chain Reaction Theory explains well the recent behaviour of Spanish regional disparities in unemployment.
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how Labour Market Flexibility affects unemployment long term implications of the chain reaction theory
The Economic Journal, 1998Co-Authors: Marika Karanassou, Dennis J SnowerAbstract:This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the outcome of the interplay between Labour Market shocks and a network of lagged adjustment processes). We show that, for Labour Market systems with two common characteristics – lagged endogenous variables and growing exogenous variables – lags affect unemployment not only in the short run, but in the long run as well. The reason is that, in the presence of growing exogenous variables, the lagged responses are never able to work themselves out entirely. In this respect, the chain reaction theory contrasts sharply with the natural theory, which commonly views unemployment as approaching a natural rate determined solely by the values of the exogenous variables. The policy implications of the two theories are quite different as well. For an empirical model of the UK Market, we show that unemployment does not converge to the natural rate, as conventionally defined. Furthermore, we show that lagged adjustment processes account for a substantial part of the UK long-run equilibrium unemployment rate and for the movement of UK unemployment over the past 15 years. (This abstract was borrowed from another version of this item.)
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how Labour Market Flexibility affects unemployment long term implications of the chain reaction theory
Research Papers in Economics, 1998Co-Authors: Marika Karanassou, Dennis J SnowerAbstract:This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the outcome of the interplay between Labour Market shocks and a network of lagged adjustment processes). We show that, for Labour Market systems with two common characteristics – lagged endogenous variables and growing exogenous variables – lags affect unemployment not only in the short run, but in the long run as well. The reason is that, in the presence of growing exogenous variables, the lagged responses are never able to work themselves out entirely. In this respect, the chain reaction theory contrasts sharply with the natural theory, which commonly views unemployment as approaching a natural rate determined solely by the values of the exogenous variables. The policy implications of the two theories are quite different as well. For an empirical model of the UK Market, we show that unemployment does not converge to the natural rate, as conventionally defined. Furthermore, we show that lagged adjustment processes account for a substantial part of the UK long-run equilibrium unemployment rate and for the movement of UK unemployment over the past 15 years.
Raul Eamets - One of the best experts on this subject based on the ideXlab platform.
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Labour Market Flexibility and spatial mobility
International Journal of Manpower, 2014Co-Authors: Raul Eamets, Krista JaaksonAbstract:Purpose – Recent economic recession has highlighted the role of Labour Market Flexibility as a key factor of competitiveness of a country. Despite the fact that Labour mobility can essentially be seen as part of Labour Market Flexibility, there is notable research gap concerning spatial mobility and other facets of Labour Market Flexibility. The purpose of this special issue is to fill these gaps. Design/methodology/approach – The papers in the special issue represent various quantitative methods and databases, whereas mainly micro data (workplace, Labour force or immigrant surveys, job search portal, etc.) is used. However, the type of Labour Market Flexibility addressed is both micro- and macro-level. Findings – It is demonstrated that Labour occupational mobility is determined by the business cycle, numerical Flexibility, occupational categories, and sector. Spatial mobility may have counterintuitive effects on individual occupational mobility depending on gender and it is related to various flexibilit...
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the paradox of the baltic states Labour Market Flexibility but protected workers
European Journal of Industrial Relations, 2005Co-Authors: Raul Eamets, Jaan MassoAbstract:This article assesses the strictness of employment protection legislation and its actual enforcement in the Baltic States. We use information from the applicable legislation as well as employer surveys, data on the coverage of Labour legislation and the practice of law enforcement. Overall strictness is close to the average of EU countries and relatively well aligned with EU regulations; individual and collective dismissals are relatively heavily and temporary forms of employment relatively weakly regulated. However, effective Flexibility is increased by problems of enforcement: there is much evidence of violations of statutory regulations at enterprise level. In addition, the proportion of the workforce actually covered by the regulations is relatively low. In the Baltic States temporary employment is more widespread, implying a higher level of Flexibility than the EU average.
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Labour Market Flexibility and employment protection regulation in the baltic states
2004Co-Authors: Raul Eamets, Jaan MassoAbstract:There is increasing pressure for the Flexibility of Labour Markets both in current EU member states and candidate countries. The paper aims to estimate the strictness of employment protection regulation, one of the most relevant aspects of Labour Market Flexibility, and the degree of its actual enforcement, for the Baltic States. For the studies on CEE Labour Markets the novelty in our approach is that we use information from the applicable legislation as well as on the coverage of Labour legislation and the practice of law enforcement. The analysis shows that, though overall EPL strictness is close to the average of EU countries, individual and collective dismissals are relatively heavily and temporary forms of employment relatively weakly regulated. Still, the effective Flexibility is increased by larger share of less protected workers and problems with law enforcement, which may be the reason why employers’ estimates on the Flexibility differ somewhat from the Flexibility of formal legislation. The employment protection legislation seems not to have influenced the level of unemployment in the sample of CEE countries. However, it is possible that Labour Markets of Baltic States will become more rigid if the law enforcement improves, with possible adverse effects on Labour Market performance.
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Labour Market Flexibility and employment protection regulation in the baltic states
Social Science Research Network, 2004Co-Authors: Jaan Masso, Raul EametsAbstract:There is increasing pressure for the Flexibility of Labour Markets both in current EU member states and candidate countries. The paper aims to estimate the strictness of employment protection regulation, one of the most relevant aspects of Labour Market Flexibility, and the degree of its actual enforcement, for the Baltic States. For the studies on CEE Labour Markets the novelty in our approach is that we use information from the applicable legislation as well as on the coverage of Labour legislation and the practice of law enforcement. The analysis shows that, though overall EPL strictness is close to the average of EU countries, individual and collective dismissals are relatively heavily and temporary forms of employment relatively weakly regulated. Still, the effective Flexibility is increased by the larger share of less protected workers and problems with law enforcement, which may be the reason why employers' estimates on the Flexibility differ somewhat from the Flexibility of formal legislation. The employment protection legislation seems not to have influenced the level of unemployment in the sample of CEE countries. However, it is possible that Labour Markets of Baltic States will become more rigid if the law enforcement improves, with possible adverse effects in Labour Market performance.
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Labour Market Flexibility and migration in the baltic states macro evidences
Research Papers in Economics, 2003Co-Authors: Tiiu Paas, Raul Eamets, Jaan Masso, Marit RoomAbstract:The Eastern enlargement of the European Union and the requirements of the European Monetary Union call for increased Flexibility of Labour Markets in both the current EU members and candidate countries. If Labour Markets and institutions are rigid in the monetary union, Market disequilibrium is likely to grow. The present paper aims to give a macroeconomic overview of the Baltic States’ Labour Market in the period 1995?2001, laying emphasis on the issues of Labour Market Flexibility and Labour migration in the context of EU eastward enlargement. The Baltic States comprise a particular regional cluster and an interesting case for making generalizations about the processes of transition and EU eastward enlargement, and developing a new field of economics - the economics of transition and integration. In real terms, one has to admit, the influence of the Baltic economies on the EU eastward enlargement processes can hardly be significant, as the very small size of the Baltic Markets bears no comparison with either the Markets of the current EU member states (EU15) or the other candidate countries (CC). The Baltic States have dutifully observed the main international standards regulating Labour relations in accordance with the EU rules. Comparing the Baltic States’ Labour Market with those of EU15 and the other candidate countries, one comes to the conclusion that the Baltic States’ Labour Markets are flexible. The most flexible among them is the Estonian Labour Market followed by that of Latvia. However, predictably, after joining the EU, the Labour Markets of the new members may become more rigid due to the increasing influence on them of institutions and trade unions, and due to more generous funding of Labour Market policies. Moreover, a decline of wage Flexibility can be predicted. Free movement of Labour as a natural consequence of EU enlargement will also exert pressure on the Baltic Labour Markets due to the possible migration of better-qualified and flexible Labour force, and cross-border movement of Labour within the Baltic Sea Region countries. Coupled with ageing of the population, it may increase shortage of skilled Labour. Consequently, if Labour mobility increases and Labour Market Flexibility declines remarkably during the enlargement processes, Market disequilibrium is likely to grow in the Baltic States as well.
Andrew J Hill - One of the best experts on this subject based on the ideXlab platform.
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industry structure and Labour Market Flexibility in the south african manufacturing sector a time series and panel data approach
Social Science Research Network, 2011Co-Authors: Johannes Fedderke, Andrew J HillAbstract:This paper presents a joint analysis of Labour Market Flexibility and product Market structure. Our investigation confirms earlier results of imperfect competition in South African manufacturing indusry, with an average mark-up of 50% for the period 1970 to 2004, without consistent trend in the mark-up over time. The contribution of the paper is to provide a theoretically grounded means of linking output Market conduct to Labour Market Flexibility. We infer the proportion of Labour associated with rigidities in the Labour Market rather than flexible from the mark-up, and find that two thirds of total Labour employed in South African manufacturing is associated with rigidities. We find that this proportion falls during the 1980s and rises during the 1990s, suggesting an increase in Labour Flexibility followed by a decrease.
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industry structure and Labour Market Flexibility in the south african manufacturing sector a time series and panel data approach
Research Papers in Economics, 2006Co-Authors: Johannes Fedderke, Andrew J HillAbstract:Our investigation of industry structure in South African manufacturing reveals evidence of imperfect competition. We find an average mark-up of 50% for the period 1970 to 2004. Results suggest that there is no consistent trend in the mark-up over time. This paper extends the analysis of industry structure by linking it to Labour Market Flexibility. We infer the proportion of Labour cost that is fixed rather than flexible from the mark-up, and find that two thirds of total Labour employed in South African manufacturing is devoted to fixed costs. We find that this proportion falls during the 1980s and rises during the 1990s, suggesting an increase in Labour Flexibility followed by a decrease.
Dennis J Snower - One of the best experts on this subject based on the ideXlab platform.
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how Labour Market Flexibility affects unemployment long term implications of the chain reaction theory
The Economic Journal, 1998Co-Authors: Marika Karanassou, Dennis J SnowerAbstract:This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the outcome of the interplay between Labour Market shocks and a network of lagged adjustment processes). We show that, for Labour Market systems with two common characteristics – lagged endogenous variables and growing exogenous variables – lags affect unemployment not only in the short run, but in the long run as well. The reason is that, in the presence of growing exogenous variables, the lagged responses are never able to work themselves out entirely. In this respect, the chain reaction theory contrasts sharply with the natural theory, which commonly views unemployment as approaching a natural rate determined solely by the values of the exogenous variables. The policy implications of the two theories are quite different as well. For an empirical model of the UK Market, we show that unemployment does not converge to the natural rate, as conventionally defined. Furthermore, we show that lagged adjustment processes account for a substantial part of the UK long-run equilibrium unemployment rate and for the movement of UK unemployment over the past 15 years. (This abstract was borrowed from another version of this item.)
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how Labour Market Flexibility affects unemployment long term implications of the chain reaction theory
Research Papers in Economics, 1998Co-Authors: Marika Karanassou, Dennis J SnowerAbstract:This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the outcome of the interplay between Labour Market shocks and a network of lagged adjustment processes). We show that, for Labour Market systems with two common characteristics – lagged endogenous variables and growing exogenous variables – lags affect unemployment not only in the short run, but in the long run as well. The reason is that, in the presence of growing exogenous variables, the lagged responses are never able to work themselves out entirely. In this respect, the chain reaction theory contrasts sharply with the natural theory, which commonly views unemployment as approaching a natural rate determined solely by the values of the exogenous variables. The policy implications of the two theories are quite different as well. For an empirical model of the UK Market, we show that unemployment does not converge to the natural rate, as conventionally defined. Furthermore, we show that lagged adjustment processes account for a substantial part of the UK long-run equilibrium unemployment rate and for the movement of UK unemployment over the past 15 years.
Johannes Fedderke - One of the best experts on this subject based on the ideXlab platform.
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industry structure and Labour Market Flexibility in the south african manufacturing sector a time series and panel data approach
Social Science Research Network, 2011Co-Authors: Johannes Fedderke, Andrew J HillAbstract:This paper presents a joint analysis of Labour Market Flexibility and product Market structure. Our investigation confirms earlier results of imperfect competition in South African manufacturing indusry, with an average mark-up of 50% for the period 1970 to 2004, without consistent trend in the mark-up over time. The contribution of the paper is to provide a theoretically grounded means of linking output Market conduct to Labour Market Flexibility. We infer the proportion of Labour associated with rigidities in the Labour Market rather than flexible from the mark-up, and find that two thirds of total Labour employed in South African manufacturing is associated with rigidities. We find that this proportion falls during the 1980s and rises during the 1990s, suggesting an increase in Labour Flexibility followed by a decrease.
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industry structure and Labour Market Flexibility in the south african manufacturing sector a time series and panel data approach
Research Papers in Economics, 2006Co-Authors: Johannes Fedderke, Andrew J HillAbstract:Our investigation of industry structure in South African manufacturing reveals evidence of imperfect competition. We find an average mark-up of 50% for the period 1970 to 2004. Results suggest that there is no consistent trend in the mark-up over time. This paper extends the analysis of industry structure by linking it to Labour Market Flexibility. We infer the proportion of Labour cost that is fixed rather than flexible from the mark-up, and find that two thirds of total Labour employed in South African manufacturing is devoted to fixed costs. We find that this proportion falls during the 1980s and rises during the 1990s, suggesting an increase in Labour Flexibility followed by a decrease.
