<abstract xmlns="http://www.w3.org/1999/xhtml">

This paper presents and describes a new database of major minimum wage and collective bargaining (CB) shocks covering 26 advanced economies over the period 1970–2020. The main advantage of this dataset is the precise identification of the nature and date of major shocks, which is valuable in many empirical applications. Based on the dataset, we observe that major changes in minimum wages have been more frequent than in CB in the last decades, and the majority of these were implemented during the 1980s and 1990s. In our empirical application, we find that minimum wage policy reductions have a medium-run positive impact on labor productivity and they lead to a fall in the unemployment rate. CB policy liberalizations do not seem to affect either productivity or capital formation, but they have a clear medium-term effect on the labor market. Moreover, CB policy liberalizations are characterized by a greater sensitivity to the prevailing business cycle conditions at the time of the shock (vis-à-vis minimum wage reforms).
</abstract>

School of Economics and Management, Instituto Superior de Economia e Gestão (ISEG)

Instituto Superior de Economia e Gestão (ISEG)

Economics for Policy, Nova School of Business and Economics

Minimum wage and collective bargaining shocks: a narrative database for advanced economies

<abstract xmlns="http://www.w3.org/1999/xhtml">

This paper quantifies the effect of Poland's 1999 pension reform on the inequality of future pension benefits. The reform increases inequality, both in the upper and lower parts of the distribution. The estimates, based on the 2012 Polish Household Budget Survey, show that the Gini coefficient reaches 0.27 once the full effect of the reform has materialized. Had the pre-reform system continued unchanged, the Gini coefficient would not be >0.19. The increased inequality of pension benefits is the result of the system gradually moving from a more redistributive defined benefit pension system to a system in which benefits are strongly linked to earnings. We show to what extent minimum pension benefits mitigate the increase in inequality under different scenarios.
</abstract>

Department of Economics I, Collegium of Economic Analysis, Warsaw School of Economics

The distributional effects of the pension system reform in Poland

<abstract xmlns="http://www.w3.org/1999/xhtml">

This study develops a search and matching model for labour markets with temporary and permanent contracts. It matches empirical patterns of higher matching rates and lower surplus for temporary workers and predicts an increase in separation taxes leads to a fall in the number of new permanent jobs, an increase in their wages, and stable separation rates because temporary workers shield permanent workers from adverse shocks. We find empirical support using a regional French policy experiment, the “Contrat de Transition Professionelle”, which increased separation taxes for recently hired permanent workers in firms with fewer than 1,000 workers.
</abstract>

Job Protection — It is Good to be an Insider

<abstract xmlns="http://www.w3.org/1999/xhtml">

Many European countries are facing the key challenge of integrating low-skilled jobless young people into the labor market. From 2018 to 2020, the Public Employment Service (PES) in Vienna tested a new model of intensified support (“case management”). The target group consisted of young unemployed persons with low formal qualifications who were drawing on social assistance. Based on the pilot project and a propensity matching approach, we show that the increase in staff significantly increased the intensity of the counseling. It led to an increase in job proposals and active labor market program participation, as well as sanctions in the form of benefit suspensions for failure to keep PES appointments. In line with the goal, more of the young people were encouraged to take part in training and further education instead of being quickly placed in an unskilled job. However, in the three-year follow-up period, the intensified counseling did not (yet) have a significant effect on the overall extent of integration into employment. Regarding post-unemployment job quality, we find no effects on wages at the start of a job.
</abstract>

The effects of more intensive counseling for disadvantaged unemployed youth

<abstract xmlns="http://www.w3.org/1999/xhtml">

During the last quarter century, job tenure in Europe has shortened. Using data from Eurostat Labor Force Surveys of 29 countries from 1995 to 2020 and applying an age-period-cohort decomposition to analyze changes in tenure for specific birth cohorts, we show that tenure has shrunk for cohorts born in more recent years. To account for compositional changes within cohorts, we estimate the probability of holding jobs of different durations, conditional on individual and employment-related characteristics. The estimations demonstrate that, over time, the likelihood of having a medium- or long-term job decreased and holding a short-term job increased. We also find that stricter job protection legislation appears to decrease the probability of holding a short-term job, and higher trade openness and ICT-related technological change are correlated with an increase of that probability.
</abstract>

Explaining the Evolution of Job Tenure in Europe, 1995–2020

<abstract xmlns="http://www.w3.org/1999/xhtml">

Despite established positive associations of paid care leave (PCL) policies on labor market outcomes such as wage replacement and job continuity, the United States is a notable outlier as the only advanced nation without a federal paid leave program. Assuming PCL programs are costly, my study examines employer perceptions and responses to PCL regulations in the US during the COVID-19 pandemic in 2020. Using a policy experiment around the 500-employee cutoff associated with the Families First Coronavirus Response Act (FFCRA), logistic regressions are used on a newly-created dataset constructed from a survey administered to 306 business managers in New York and Boston. The analysis ultimately seeks to evaluate if PCL cost concerns predict 19 different business outcomes such as changes in headcount or employee benefits. In general, while 54.6 percent of firms report cost concerns with PCL laws, the results find firms with such concerns are more likely to engage in non-employee focused operational changes such as increases in prices instead of employee-oriented outcomes such as layoffs or wage decreases. Furthermore, the policy experiment yields that large companies are more likely to increase internal paid leave, while small companies are more likely to increase the number of independent contractors at the company. My study confirms companies react to government PCL regulation in dynamic ways, dependent on the unique circumstances and culture of each company.
</abstract>

Families first: A comparative study of company responses to paid care leave programs in the COVID-19 pandemic

<abstract xmlns="http://www.w3.org/1999/xhtml">

This paper develops a conceptual analysis to identify the jobs that can be done from home and those that cannot, and on this basis quantifies the fraction of employees that are in teleworkable occupations across EU countries. Using detailed data on occupational tasks, we construct two teleworkability indices. The first core technical teleworkability index, based on the prominence of physical tasks, implies that 36% of dependent employment in the EU is technically teleworkable. However, our second social interaction index shows that only one third of teleworkable employment is in occupations that require limited social interactions, thus ideally suited to telework. To validate our approach, we compare our measures of teleworkability with data on the actual prevalence of telework before and during the COVID-19 outbreak. We show that our measures correlate with the observed increase in telework across countries and occupations in the EU during the outbreak. However, the prevalence of telework among employees appears to have remained below its full potential in 2020, as measured by our technical teleworkability index. This is especially the case for lower-level white-collar occupations as well as for countries with limited previous experience with teleworking. These patterns suggests that, despite the rapid increase in teleworking, the same barriers that prevented the diffusion of telework before the outbreak – lack of ICT infrastructure, fears of losing managerial control, position in the occupational hierarchy, limited workforce's digital skills, awkwardness of remote social interaction – are likely to continue playing an important role in shaping the diffusion of telework after the outbreak.
</abstract>

Teleworkability and the COVID-19 crisis: potential and actual prevalence of remote work across Europe

<abstract xmlns="http://www.w3.org/1999/xhtml">

Most of the competitiveness gap in Latin America is due to its labor market, one of the areas with the highest rates of subjective indicators in the Global Competitiveness Index (GCI). This paper analyzes the subjective component of the GCI in the labor market area and discusses its accuracy for policy advice. We focus on the set of countries that highly rely on the GCI for policy advice and highlight that the perception of business executives of the labor market as rigid contrasts with the significant experience of flexibilization policies undertaken in the region over the past 3 decades. We show that the GCI has been largely constructed with opinion data from large firms, a business sector that accounts for &lt;5% of total firms in the countries of study. Furthermore, the questionnaire exhibits obvious flaws. Thus, we do not find that the GCI provides a solid base for policy advice.
</abstract>

Is the Global Competitiveness Index by the World Economic Forum a reliable tool for the design of labor market policies? Evidence from Latin American countries

AHEAD OF PRINT

Volume 13 (2023): Issue 1 (January 2023)

Volume 12 (2022): Issue 1 (January 2022)

Volume 11 (2021): Issue 1 (January 2021)

Volume 10 (2020): Issue 1 (March 2020)

Volume 9 (2019): Issue 1 (June 2019)

IZA Journal of Labor Policy

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