In almost all countries, the transition from a centrally planned economy to a market economy caused high unemployment. The governments attempted to ease the changeover to a market economy for the unemployed by introducing several passive and active labour market policies. This paper first points out which effects were to be expected of such policies from the perspective of Austrian Economics. These theoretical hypotheses are then tested empirically. It turns out that the hypotheses deducted from Austrian (...) Economics theory are impressively corroborated by the empirical evidence.Dans presque tous les pays, la transition d’une économie centralement planifiée vers une économie de marché ont provoqué un chômage élevé. Les gouvernements ont essayé d’adoucir la transition vers une économie de marché pour les chômeurs en introduisant plusieurs politiques passives et actives sur le marché du travail. Tout d’abord, cet article souligne quels étaient les effets attendus de telles politiques à la lumière de l’économie autrichienne. Ces hypothèses théoriques sont ensuite testées de manière empirique. Il en ressort que les hypothèses déduites de la théorie économique autrichienne sont corroborées de manière significative par les preuves empiriques. (shrink)

Active labor-market policies have developed significantly over the past two decades across Organization for Economic Cooperation and Development countries, with substantial cross-national differences in terms of both extent and overall orientation. The objective of this article is to account for cross-national variation in this policy field. It starts by reviewing existing scholarship concerning political, institutional, and ideational determinants of ALMPs. It then argues that ALMP is too broad a category to be used without further specification, and it develops (...) a typology of four different types of ALMPs: incentive reinforcement, employment assistance, occupation, and human capital investment. These are discussed and examined through ALMP expenditure profiles in selected countries. The article uses this typology to analyze ALMP trajectories in six Western European countries and shows that the role of this instrument changes dramatically over time. It concludes that there is little regularity in the political determinants of ALMPs. In contrast, it finds strong institutional and ideational effects, nested in the interaction between the changing economic context and existing labor-market policies. (shrink)

Conventional wisdom among comparative political economists maintains that the participation of employers in policymaking and policy implementation, fostered by corporatist arrangements, is crucial to the successful expansion of active labor market policy. This article introduces a transaction-oriented theory of corporatism, partisanship, and ALMP that challenges the dominant view. It argues that corporatist arrangements do not affect the overall scope of ALMP but facilitate particular types of ALMP programs, ones that require the joint participation of employers and the (...) state and involve a transfer of public resources to employers. Corporatist arrangements facilitating such programs—which center-right parties tend to prefer over those produced unilaterally by the state—also shift the focus of partisan conflict over ALMP from the level of public expenditure to the structure. Evidence for these claims is provided by time-series cross-sectional analyses of twenty-one OECD countries since the mid-1980s. (shrink)

This article examines the conventional Rehnist interpretation of active labor market policy in Sweden during the period from the war to the early 1970s and asks how it relates to the basic principles of evidence-based social science research.It is shown that the interpretation is misleading, reproducing and communicating material, stories, and images that were supplied bysome of the leading Swedish actors rather than producing an analysis based on the empirical examination of actual developments.The conclusion of the article offers (...) suggestions for an alternative evidencebased interpretation of the Swedish case. (shrink)

The field of labor market policy (LMP) is a highly contested issue because it directly addresses the power relations between labor and capital. Therefore, it is often in the center of political and...

This paper seeks to examine the relationship and the interaction between institutions, policy and the labour market in the light of the ideas of the first generation of institutional economists, who, in contrast to neoclassicals, conceived of the economy as a nexus of institutions, underlining, therefore, the significant role of institutional and non-market factors in the functioning of an economic system. They also criticised those who define (economic) welfare only in terms of efficiency and satisfaction of (...) consumer interests; institutionalists instead focus on issues related to justice, human self-development and labourers' welfare. In addition, early institutionalists paid considerable attention to the institutional framework of the labour market. In particular, the first generation of institutional economists highlighted the importance of institutions and other non-market parameters in determining the level of wages and employment (e.g. the role of the bargaining power of workers and employers). Furthermore, they made substantial contributions towards the field of labour policy and they were pioneers in the formulation of economic and social policy. Specifically, various modern institutions and labour market policies, such as unemployment benefits, industrial training and active employment policies, were implemented in the US, during the first decades of the 20th century, after the recommendation of the institutional labour economists. Therefore, their ideas, besides being interesting from a historical point of view, may also be useful in today's analysis of workers' problems and the functioning of modern labour markets. (shrink)

The article is based on the argument that labour market segregation is an important factor contributing to women’s inequality in the labour market. Therefore, any equal opportunities policy has to be combined with a policy to reduce segregation. But up to now segregation has been extremely persistent, as is shown in a short empirical overview of segregation in the Austrian labour market. It is argued that the roots of this phenomenon lie in (...) the assignment of men and women to the market area and the reproduction area according to the breadwinner model. Labour market segregation by sex can be seen as a transformation and continuation of the asymmetrical gender relation in the family to the labour market. Most of the mechanisms and processes that occur every day in the labour market work together to preserve sex segregation. Strategies to reduce segregation should look at these historical roots of segregation and at the connection with the overall gender division of labour. Different perspectives on a reduction of labour market segregation are presented. (shrink)

The South African labor market is characterized by a high degree of inflexibility and complexity which poses significant challenges for both indigenes and migrants looking to be integrated into the labor market. These challenges are likely to be more poignant for international migrants as they face additional barriers owing to a chronically high employment rate, xenophobic sentiments, and racial exclusion. For female tied migrants, gender bias, expressed through migration policies and legislation, adds yet another layer of complexity to (...) long-term aspirations of settling in South Africa. How well tied migrants fare in the South African labor market is an important matter for consideration. Using an intersectional approach and the theory of governmentality, this study sought to deconstruct the labor market subjectivities of tied migrants in South Africa. This paper used a qualitative approach, with a narrative and interpretivist research paradigm, on female tied migrants from Sub-Saharan Africa who either accompanied their husbands or followed them to South Africa in a process of family reunification. Although 13 interviews were carried out in total, as part of a broader study, the narratives of six participants were included in this study, to zone in on labor market experiences. The study found that despite their high human capital, tied migrants are not likely to be well integrated into the South African labor market. Their inequality in the South African labor market was attributed to their gender, ethnicity, race, migrant status and locality and various intersections thereof through which they are subjected to informality, immobility and precarity. (shrink)

Introduction. On the territory of the Chelyabinsk region there are 16 single-industry towns, the labor market and employment of which depend on the socio-economic situation of the single-industry enterprise. This state of matters results in the growth of unemployment, decrease in the level of human capital, the population’s life quality, and the loss of scientific and production potential. According to the authors, developing the theoretical foundations of the labor market and employment digital transformation in a single-industry town will (...) make it possible to find alternative ways of employing the population in order to improve regional policy on the labor and employment market. The purpose of the study is to develop the theoretical foundations of the labor market and employment digital transformation in a monotown. Methods. The authors use the following scientific methods: system analysis, comparison, description, generalization, systematization, formalization, analysis of sources, etc. The scientific novelty of the research consists in defining the concepts «digital transformation of the labor market of a monotown», «digital platform of the labor market»; in determining changes in the elements of a monotown labor market structure in the processes of digital transformation; in determining the subjects, objects of the labor market digital transformation; in developing a comparative characteristic of the traditional labor market and the labor market of Industry 4.0 monocity; in developing recommendations for the digital transformation of the labor market of a monotown in order to improve the regional employment policy. Results and conclusions. As a result of analyzing the structure of the population’s employment in single-industry towns of the Chelyabinsk region, the authors determine quantitative transformations in the number of the residing population, the average number of employees towards its reduction; the authors characterize the average monthly salary of workers in organizations of single-industry towns as unstable. The analysis of unemployment shows that there is a tendency for the number of youth among the unemployed to grow, at the same time, hidden unemployment is decreasing; in general, the unemployment rate in single-industry towns is higher than in the Chelyabinsk region for the entire study period. The analysis shows that it is necessary to search for alternative ways of employing the population, of decreasing the unemployment rate, which made it possible to develop theoretical foundations for transforming the labor market and employment of a single-industry town. (shrink)

This article focuses on the relationship of employer behaviour to labour market inequalities. Matched employer-employee data are casting an important new light on how variation in wage setting practices across firms can affect the structure of earnings and earnings mobility. It shows that very different wages are paid to equivalent labour across and within firms. It also argues that policies targeting firm selection of workers may affect inequality as much as policies of training and education.

In West Germany, there is a good deal of disagreement among leading political groups, economic decision makers and scientific experts concerning both the future of the labor market and the role of labor in society. This disagreement bears on all of the three relevant points: the prognosis of the likely future development, the policy most suited to this development, and the criteria and objectives that determine whether, in fact, a development could be judged as positive or indeed desirable. (...) In this discussion, the first of these three points is the least controversial. Quite a number of contemporary publications in Germany feature the famous graph, developed in 1982 by the Federal Labor Agency's Institute for Labor Market and Vocational Research, which depicts labor market trends for the years 1965 to 2000. (shrink)

Employment is critical for refugees’ positive integration into a receiving country. Enabling employment requires cross-sector collaborations, that is, employers collaborating with different stakeholders such as refugees, local employees, other employers, unofficial/official supporters, and authorities. A vital element of cross-sector collaborations is trust, yet the complexity of cross-sector collaborations may challenge the formation and maintenance of trust. Following a theory elaboration approach, this qualitative study with 37 employers and 27 support workers in Germany explores how employers’ experiences in cross-sector collaborations on (...) refugees’ labor market integration affect their trust in other stakeholders in this cross-sector space. Specifically, we explored employers’ perceptions of trust breaches, and how these perceptions affect their further engagement in cross-sector collaborations on refugee integration. Based on our findings, we propose a process model that describes how unmet collaboration expectations and negative assessments of collaborators’ attitudes and behaviors lead to perceived trust breaches which, in turn, lead to employers’ hesitancy to hire refugees and/or to engage in cross-sector collaborations. In doing so, we extend existing theory on trust within organizations to the cross-sector context of refugee integration, uncovering context-specific meanings to trustworthiness dimensions and illustrating how breaches of different trustworthiness dimensions can interact. Moreover, we show how social policies, resources, and trustors’ perceived vulnerability in collaborations shape their risk perceptions. This study highlights the central role of trust for refugee integration and illustrates how missing goals and process clarity endanger sustainable collaborations. (shrink)

PurposeThe purpose of this paper is to argue that in spite of the widely optimistic held view on the effect of information and communication technologies (ICTs) in promoting the “knowledge society” in Europe and economic development elsewhere, evidence suggests that ICT's could be strengthening labour duality world wide.Design/methodology/approachThe paper addresses these issues by presenting a brief assessment of the “Washington Consensus” and the emergence of ICTs in terms of trade, growth and inequality in different regions of our planet. The (...) paper also describes the effects of globalisation and ICTs on European economies. Finally, the paper presents the key finding and raises some policy implications to exploit ICT potentialities to ensure welfare systems in advanced economies and development in emerging countries.FindingsThe lack of sufficient institutional mechanism of distribution in developing economies is not only making it more difficult for economic growth to translate into development but it is also favouring relocations of production, pressures to deregulate employment, control salaries and social expenditure in Europe. This feeds complex processes of social segmentation world wide. To meet this challenge Europe has no choice but to opt for the development of avant‐garde sectors. However, measures linked to the development of the knowledge society may not be sufficient to maintain our welfare states in the current context of globalisation. Europe must play a more internationally active role in the design of another model of globalisation that would encompass social policies at a global scale as one of its pillars.Originality/valueThere are very few studies of ICTs' role in the relationship between openness‐growth‐development‐inequality. What are ICTs responsible for? What are ICTs' effects on development and welfare state sustainability? (shrink)

This article focuses on the role of unions and their influence on economic inequality. Section 2 reviews the literature regarding the union effect on wages and wage inequality. Section 3 considers the separate contributions of union power, membership composition, bargaining coordination, and wage policy. Section 4 introduces the distinction between membership and coverage, while the following two sections discuss the impact of union power on earnings inequality when coverage is either exclusive or inclusive. Section 7 discusses the rationale for (...) unions aiming for wage compression while Section 8 estimates how the presence of trade unions has influenced the extent and dynamics of earnings inequality across advanced economies during the 1980s and 1990s. For this purpose indicators have been developed for trends in equality and union presence from different sources. Section 9 concludes. (shrink)

This chapter focuses on maintaining employment in the sector of small and medium-sized enterprises, which is crucial for the functioning of the economy. However, in an economic crisis, the changes in the area of employment of workers often become the foremost way of adapting to declining financial resources, which are the result of reduction of interest in the offer of the organisation by the customers. These actions had proven to be particularly evident in the case of global financial and economic (...) crisis, which also affected the Polish economy after 2008. The chapter suggests that the layoffs lead to rise in unemployment. Thus, there is a need to promote the outplacement, which is, a technique oriented on responsible dismissals in order to support a smooth transition of laid-off workers to new workplaces. In this way, both employees and companies increase their chances of maintaining competencies and better adapt to market competition requirements. This chapter explores the characteristics of the labour market policy in Poland, main features of the outplacement in the context of the crisis, examples of the outplacement implementation, plans for further development of the outplacement, and conclusions including directions for further research. (shrink)

This book investigates the struggles for hegemony, and a possible ‘crisis of crisis management’ at the core of Italy’s political economy. With a specific focus on the conflict over the 2012 labour market reform, the book also explores the country’s trajectory in the area of economic and social reproduction. It presents a framework for critical policy analysis that draws on cultural political economy and explores its potential synergies with complementary approaches such as historical materialist policy analysis (...) and critical discourse analysis. Readers will gain an understanding of crisis dynamics in the aftermath of 2008, and insights into related political reactions. The book will also help them develop the analytical tools needed to make sense of these puzzling phenomena. (shrink)

What explains Germany’s exceptional labor market performance during the Great Recession of 2008-09? Contrary to accounts that emphasize employment protection legislation or government policy, this article argues that actions by firms—embedded in ever-changing coordinative institutional structures—were crucial. Firms chose to keep rather than shed labor, a strategy induced by a “toolkit” of flexible labor market instruments that had evolved incrementally over the past thirty years; wage restraint and successful internal restructuring of firms during the past decade, which (...) fueled an export boom before the crisis. Firms thus had some margin for maneuver, using internal flexibility to protect their investment in skilled workers. These and other institutional changes driven by firms reflect a process of successful adaptation to external economic challenges, but did not fundamentally undermine Germany’s coordinated form of capitalism. The result is not a new German model that was purposefully designed; instead German firms slowly discovered new ways to cope with economic challenges. (shrink)

Racial earnings inequalities in the United States diminished significantly over the three decades following World War II, but since then have not changed very much. Meanwhile, black—white disparities in employment have become increasingly pronounced. What accounts for this historical pattern? Sociologists often understand the evolution of racial wage and employment inequality as the consequence of economic restructuring, resulting in narratives about black economic fortunes that emphasize changing skill demands related to the rise and fall of the industrial economy. Reviewing a (...) large body of work by economic historians and other researchers, this article contends that the historical evidence is not consistent with manufacturing- and skills-centered explanations of changes in relative black earnings and employment. Instead, data from the 1940s onward suggest that racial earnings inequalities have been significantly influenced by political and institutional factors—social movements, government policies, unionization efforts, and public-employment patterns—and that racial employment disparities have increased over the course of the postwar and post-1970s periods for reasons that are not reducible to skills. Taking a broader historical view suggests that black economic fortunes have long been powerfully shaped by nonmarket factors and recenters research on racial discrimination as well as the political and institutional forces that influence labor markets. (shrink)

Publication date: 27 August 2018 Source: Author: Dejana Pavlović, Ivana S. Domazet, Milena Lazić The high rate of youth unemployment is an issue that is largely present in developing countries, such as Serbia. The results of the research will provide a major contribution whether education has an impact on the labour market among young people in Serbia. Decision tree was performed to identify impact constructs. In order to define public policies, an insight is provided into the characteristics of (...) young people that largely contribute to the probability of being employed. The results showed that education has an impact on youth unemployment. Results of the research will be useful for decision makers in the implementation of a strategic model of the labour market. Theoretical and practical implications are discussed in the paper. (shrink)

Although the prison was originally conceived for the noble purpose of rehabilitating criminal offenders, critics from its very inception worried that the prison was an inherently criminogenic institution, reinforcing the criminal behaviors of its occupants. In this article I focus on an indirect mechanism, elaborating and empirically testing the impact of a prison record/experience on ex-inmates' labor market outcomes, by which ex-inmates will face significantly higher risks of recidivism and hence future prison spells, especially when they are released into (...) weaker labor markets. Specifically, I specify and test a version of the "secondary labor market hypothesis." Because most ex-inmates were mired in secondary jobs prior to their incarceration, I consider the impact of a prison record/experience on their chances of "moving up" to good jobs with higher pay, steadier hours, and greater mobility. In the conclusion I draw out the somber implications of my labor market analyses by examining trends in recidivism rates and their social costs. The evidence suggests that the War on Drugs policies have trapped an increasing number of more marginal drug offenders in the revolving door of recidivism, conventionally defined. It also highlights a new and quantitatively important recidivism risk for released prisoners, the revocation of parole on technical violations. To break out of this vicious cycle, my analysis shows, would demand vast direct government interventions in the labor market. As a more modest first step, I consider policy innovations like drug courts that place marginal drug offenders in treatment programs rather than prison. In illustrating and elaborating my arguments, I focus on the War on Drug policies and on marginal drug offenders. My reasons are several. First, the War on Drugs constituted a true social experiment, an exogenous shift in criminal justice policy that is best understood as a "moral" panic, precipitated in part by the tragic but transitory episode of lethal gun violence in the social regulation of the crack trade. Second, the War on Drugs policies were quantitatively important in instituting the regime of mass incarceration. And finally, these policies indiscriminately incarcerated marginal, not just more serious, offenders. (shrink)

Challenging the new political-economic “mainstream” that considers trade unions to be “complicit” in labor market dualization, this article’s analysis of union strategies in Italy and South Korea, most-different union movements perceived as unlikely cases for the pursuit of broader social solidarity, shows that in both countries unions have successively moved away from insider-focused strategies and toward “solidarity for all” in the industrial relations arena as well as in their social policy preferences. Furthermore, unions explored new avenues of political (...) agency, often in alliance with civil society organizations. This convergent trend toward a social model of unionism is ascribed to a response of unions to a “double crisis”: that is, a socioeconomic crisis, which takes the form of a growing periphery of the labor market associated with growing social exclusion, and a sociopolitical crisis, which takes the form of an increasing marginalization of the unions from the political process. (shrink)

Policy decisions during and after the New Deal tied the U.S. social contract to the employment contract, by conditioning eligibility and benefit levels for core welfare-state programs on work status and performance. The resulting system of social provision, however, embodied a set of assumptions about labor-market conditions that began to unravel with the structural economic shifts that began in the mid-1970s. Work was expected to provide open doors to employment, stable floors of security and stability over time, income (...) ladders promising adequate and rising earnings, and safety nets providing public and/or private protections against unforeseen or unavoidable hardships. Each of these assumptions was undermined by fundamental changes in the market, and this, in turn, has redefined patterns of social provision. As a result, core welfare-state programs have become less effective at meeting their own objectives of providing adequate social protections for rising numbers of working Americans. These trends preceded the recent recession and weak recovery, and cannot be reversed by the return of robust growth or pre-recession employment levels, in the absence of more fundamental change in the social contract. The roots of the current dilemma lie in the 1930s-40s, when politically mobilized employers fought alongside conservative policymakers to constrain the scope of the original system of social protections during and after the New Deal. In recent decades, they have battled to keep even this limited system from reaching those it was intended to assist, by blocking or limiting reform initiatives in areas such as employment policy, the minimum wage, health and pension insurance and modernization of the unemployment compensation system. (shrink)

This article presents an analysis of research results on two categories of workers and job candidates - the youngest and the oldest. These age group cohorts are under the greatest pressure in the Russian labour market: the greatest difficulties in getting a job, age discrimination, etc. Paradoxically, these groups show not a difference but rather a similarity in their value orientations. They often experience latent and obvious discrimination from HR managers. As a result, in many respects these groups (...) tend to have similar views about the labour market and their "life chances" to build a career and maintain income stability. The younger and older age groups are ready to interact with each other, but stereotypes about old age make this process difficult. State policies that support certain age groups in the labour market often intensify intergenerational conflicts rather than hinder them. The Corona Virus pandemic has significantly affected the position of the youngest and oldest people in the labour market, putting them in a situation where they cannot apply for good jobs and have to accept any work. (shrink)

Africa is undergoing considerable political, economic and labor market reforms. In this context, education and training stands literally at a crossroads. In the past, it has been oriented toward mass production emphasizing numbers and quantities rather than skills and quality. The primary clientele of the universities were the state organs, local governments, state-controlled cooperatives, commissions and mass organizations. The universities, though frequently in conflict with the state, were very much part of the predominant bureaucratic command economies. As part of (...) the command system the market had to go to them; they did not have to reach out to the market. The current economic crisis and its subsequent reforms have turned the wheel of fortune against the state and the universities. Financial and employment cuts cannot sustain the traditional levels and practices of employment in the public sector. As the roles of the state and the private sector change, the mission, orientation and future of the universities, university staff and their graduates cannot afford to remain what they used to be. This raises the question of the extent to which the university education system of any country in the region is ready for change? The present study undertakes to identify the mechanisms for reducing state regulation of the university curricula and increasing the acceptability, relevance, reliability and dynamism of university education to the market and nonmarket, thereby increasing the capability of university graduates to be more readily employable in various sectors and, where not directly employable, to be able to employ themselves in profitable and sustainable activities. (shrink)

Digital technologies are radically transforming our work environments and demand for skills, with certain jobs being automated away and others demanding mastery of new digital techniques. This global challenge of rapidly changing skill requirements due to task automation overwhelms workers. The digital skill gap widens further as technological and social transformation outpaces national education systems and precise skill requirements for mastering emerging technologies, such as Artificial Intelligence, remain opaque. Online labour platforms could help us to understand this grand challenge (...) of reskilling en masse. Online labour platforms build a globally integrated market that mediates between millions of buyers and sellers of remotely deliverable cognitive work. This commentary argues that, over the last decade, online labour platforms have become the ‘laboratories’ of skill rebundling; the combination of skills from different occupational domains. Online labour platform data allows us to establish a new taxonomy on the individual complementarity of skills. For policy makers, education providers and recruiters, a continuous analysis of complementary reskilling trajectories enables automated, individual and far-sighted suggestions on the value of learning a new skill in a future of technological disruption. (shrink)

The Online Labour Index was launched in 2016 to measure the global utilisation of online freelance work at scale. Five years after its creation, the OLI has become a point of reference for scholars and policy experts investigating the online gig economy. As the market for online freelancing work matures, a high volume of data and new analytical tools allow us to revisit half a decade of online freelance monitoring and extend the index's scope to more dimensions (...) of the global online freelancing market. While measuring the utilisation of online labour across countries and occupations by tracking the number of projects and tasks posted on major English-language platforms, the new Online Labour Index 2020 also tracks Spanish- and Russian-language platforms, reveals changes over time in the geography of labour supply and estimates female participation in the online gig economy. The rising popularity of software and tech work and the concentration of freelancers on the Indian subcontinent are examples of the insights that the OLI 2020 provides. The OLI 2020 delivers a more detailed picture of the world of online freelancing via an interactive online visualisation updated daily. It provides easy access to downloadable open data for policymakers, labour market researchers, and the general public. (shrink)

Collective bargaining is the main vehicle for labour worldwide to negotiate wages, benefits, retirement policies, training and other terms of working with management in both the public and private sectors. Labour economists have long been active in modelling the relations between collective bargaining agreements, labour markets and social welfare conditions. This book presents a theoretical model of unions which offers a unified treatment of the centralisation of bargaining, the credibility of labour contracts, the unionisation of (...) class='Hi'>labour markets and the relative bargaining power of the union. Tapio Palokangas develops the microfoundations of bargaining and examines collective bargaining interacting with public policy, investment and growth, and international trade and specialisation. In conclusion Professor Palokangas challenges the commonly held view that collective bargaining has a negative impact on economics welfare, and argues that with the existence of market failure, collective bargaining can be welfare enhancing. (shrink)

Liberal market states promote the responsible consumption of potentially dangerous commodities. But the work of enforcing sumptuary law is in fact delegated to service employees in the private sector. In this article such work is termed sumptuary labor. Although the ability of states to privatize sumptuary enforcement is a remarkable accomplishment, it is by no means a seamless one. Drawing on ethnographic fieldwork among bartenders and casino dealers, the article elaborates patterned conflicts of interest that arise during the performance (...) of sumptuary labor. Both firms and workers may fail to ensure eligibility for consumption, prevent overindulgence, or guarantee the purity of the problematic commodity. The article concludes by theorizing how liberal market states manage the potential decoupling of sumptuary policy and practice. (shrink)

The institutional guarantees of modern labour law, that provide the keystone of progressive liberalism, are often only reactionary to the entrenched concepts of socialist law. Adoption of institutions of “workers rights”, and employment protection based upon contract, inevitably nullify the ideological promise of the inalienable “right to work”. China, among the last bastions of theoretical Marxist socialism, and among the first socialist countries ready to accept that it has been in desperate need of reforming uneconomical state enterprises, seems willing (...) to sacrifice ideological purity for economic development. Yet, if economic turnaround requires enterprise rationalisation in a market economy, it is understandable that Chinese labour requires the same kinds of protection against unbridled capitalism as progressive labour movements elsewhere. Doubtless, for those who have enjoyed no such institutional guarantees in the past, official commitment to improvement of labour conditions is better than no acknowledgment of need for reform of social policy whatever. Yet, the real question for students of social change is “Are these legislated reforms effective policy guides for local administration and the courts?”“|Or are they merely regulations for licensing compliance – primarily for foreign invested enterprises?”. In brief, “... to what extent are the new ‘workers’ rights’ realistically attainable sources of judicial remedies for individual workers?”. (shrink)

The institutional guarantees of modern labour law, that provide the keystone of progressive liberalism, are often only reactionary to the entrenched concepts of socialist law. Adoption of institutions of “workers rights”, and employment protection based upon contract, inevitably nullify the ideological promise of the inalienable “right to work”. China, among the last bastions of theoretical Marxist socialism, and among the first socialist countries ready to accept that it has been in desperate need of reforming uneconomical state enterprises, seems willing (...) to sacrifice ideological purity for economic development. Yet, if economic turnaround requires enterprise rationalisation in a market economy, it is understandable that Chinese labour requires the same kinds of protection against unbridled capitalism as progressive labour movements elsewhere. Doubtless, for those who have enjoyed no such institutional guarantees in the past, official commitment to improvement of labour conditions is better than no acknowledgment of need for reform of social policy whatever. Yet, the real question for students of social change is “Are these legislated reforms effective policy guides for local administration and the courts?”“|Or are they merely regulations for licensing compliance – primarily for foreign invested enterprises?”. In brief, “... to what extent are the new ‘workers’ rights’ realistically attainable sources of judicial remedies for individual workers?”. (shrink)

This article compares the school-level education policies of the Labour-led coalition government elected in New Zealand in late 1999 with those of New Labour in England. It illustrates that the policies being introduced by the Labour coalition have been generally less managerial and market-oriented than New Labour's even though neoliberal pressures are likely to constrain what appears to be a shift to the left in New Zealand. The difference between the two settings is explained through (...) reference to party political and contextual factors and policy and research implications are also discussed. (shrink)

The conducive economy challenges both the conceptual foundations and the practices of present-day economies. In the Netherlands, a few initiatives during the 1980s and early 1990s looked promising, in particular, as these initiatives focused on work quality as one major precondition for reducing disability and enhancing labor participation. Prospects are less bright today. Ever larger slices of governmental monetary, financial, economic, and social policies become market oriented, as distinct from conducivity oriented. The instrument of the covenant, nonetheless, may prove (...) worthwhile in further promoting the banner of work quality. (shrink)

This book provides a novel framework for understanding and revising labor markets and education policies in an era of machine learning. It posits that while learning and knowing both require thinking, learning is fundamentally different than knowing because it results in cognitive processes that change over time. Learning, in contrast to knowing, requires time and agency. Therefore, “learning algorithms”—that enable machines to modify their actions based on real-world experiences—are a fundamentally new form of artificial intelligence that have potential to be (...) even more disruptive to labor markets than prior introductions of digital technology. To explore the difference between knowing and learning, Turing’s “Imitation Game,”—that he proposed as a test for machine thinking—is expanded to include time dependence. The arguments presented in the book introduce three novel concepts: (1) Comparative learning advantage: This is a concept analogous to comparative labor advantage but arises from the disparate times required to learn new knowledge bases/skillsets. It is argued that in the future, comparative learning advantages between humans and machines will determine their division of labor. (2) Two dimensions of job performance—expertise and interpersonal: Job tasks can be sorted into two broad categories. Tasks that require expertise have stable endpoints, which makes these tasks inherently repetitive and subject to automation. Tasks that are interpersonal are highly context-dependent and lack stable endpoints, which makes these tasks inherently non-routine. Humans compared to machines have a comparative learning advantage along the interpersonal dimension, which is increasing in value economically. (3) The Learning Game is a time-dependent version of Turing’s “Imitation Game.” It is more than a thought experiment. The “Learning Game” provides a mathematical framework with quantitative criteria for training and assessing comparative learning advantages. The book is highly interdisciplinary—presenting philosophical arguments in economics, artificial intelligence, and education. It also provides data, mathematical analysis, and testable criteria that researchers in these fields will find of practical use. The book calls for a rethinking of how labor markets operate and how the education system should prepare students for future jobs. It concludes with a list of counterintuitive recommendations for future education and labor policies that all stakeholders—employers, employees, educators, students, and political leaders—should heed. (shrink)

A vacuum is arising in the social policy of advanced countries. It is due to the fact that both of the currently dominant bases for social policy, market-oriented policy, and its presumed antagonist, welfare state policy, have the same and an insufficiently broad production value model at their core. The solution is to create a true new alternative, work quality policy, based on a re-understanding of work organization and the alternative forms of value it (...) can create. Understanding work organization’s consequences can help resolve current dilemmas relating to (a) economic growth based on low production cost instead of skill development, (b) hidden costs of work intensity and job insecurity, (c) true service sector productivity, and (d) current fragility of democratic institutions. (shrink)

The republican tradition has long been ambivalent about markets and commercial society more generally: from the contrasting positions of Rousseau and Smith in the eighteenth century to recent neorepublican debates about capitalism, republicans have staked out diverse positions on fundamental issues of political economy. Rather than offering a systematic historical survey of these discussions, this chapter will instead focus on the leading neo-republican theory—that of Philip Pettit—and consider its implications for market society. As I will argue, Pettit’s theory is (...) even friendlier to markets than most have believed: far from condemning commercial society, his theory recognizes that competitive markets and their institutional preconditions are an alternative means to limit arbitrary power across the domestic, economic, and even political spheres. While most republican theorists have focused on political means to limit such power—including both constitutional means (e.g., separation of powers, judicial review, the rule of law, federalism) and participatory ones (democratic elections and oversight)—I will examine here an economic model of republicanism that can complement, substitute for, and at times displace the standard political model. Whether we look at spousal markets, labor markets, or residential markets within federal systems, state policies that heighten competition among their participants and resource exit from abusive relationships within them can advance freedom as non-domination as effectively or even more effectively than social-democratic approaches that have recently gained enthusiasts among republicans. These conclusions suggest that democracy, be it social or political, is just one means among others for restraining arbitrary power and is consequently less central to (certain versions of) republicanism than we may have expected. So long as they counteract domination, economic inroads into notionally democratic territory are no more worrisome than constitutional ones. (shrink)

As corporate managers interact with nonshareholder stakeholders, potential tradeoffs emerge and questions arise as to how these interactions impact shareholder value. We argue that this shareholder—stakeholder debate is an important issue within the overall corporate governance and corporate policy domain and examine one such stakeholder group - employees - by studying labor-friendly corporate practices. We find that announcements of labor-friendly policies are associated with positive abnormal stock returns. Labor-friendly firms also outperform otherwise similar firms, both in terms of long-run (...) stock market returns and operating results. In addition, we find that the probability and benefits of labor-friendliness increase with the demand for highly skilled labor. Our analysis of excess executive compensation suggests that top management derives no pecuniary benefits from labor-friendly practices. We interpret our results as consistent with a genuine concern for employees translating into higher productivity and profitability, which in turn facilitate value creation. It appears that the benefits of labor-friendly practices significantly outweigh the costs and that what is good for employees is good for shareholders. (shrink)

Language policies are increasingly acknowledged as being a necessary component of many decisions taken in the areas of the labor market, education, minority languages, mobility, and social inclusion of migrants. They can affect the democratic control of political organizations, and they can either entrench or reduce inequalities. These are the central topics of this book. Economists, philosophers, political scientists, and sociolinguists discuss – from an interdisciplinary perspective – the distributive socio-economic effects of language policies, their impact on justice and (...) inequality at the national or international level, as well as the connection between language choices and an inclusive access to public services. The range of social and economic issues raised by linguistic diversity in contemporary societies is large, and this requires new approaches to tackle them. This book provides new input to design better, more efficient, and fair language policies in order to manage linguistic diversity in different areas. Topics covered include: theoretical models of linguistic justice and linguistic disadvantage; the assessment of the socio-economic consequences of language policies; the evaluation of the costs, benefits, and degree of inclusion of language planning measures; the politics of migrants’ linguistic integration; as well as multilingualism and economic activities. These topics are discussed in different contexts, including the areas inhabited by linguistic minorities, cities receiving migrants, and supranational organizations. (shrink)

Markets, it is sometimes said, are hard on discrimination. An employer who finds himself refusing to hire qualified blacks and women will, in the long run, lose out to those who are willing to draw from a broader labor pool. Employer discrimination amounts to a self-destructive “taste” – self-destructive because employers who indulge that taste add to the costs of doing business. Added costs can only hurt. To put it simply, bigots are weak competitors. The market will drive them (...) out.On this account, the persistence of employment discrimination on the basis of race and sex presents something of a puzzle. And if markets are an ally of equality and a foe of employment discrimination, perhaps discrimination persists because of something other than markets. Perhaps labor unions are to blame; perhaps the real culprit is the extensive federal regulation of the employment market, including minimum-wage and maximum-hour laws and unemployment compensation. If competitive markets drive out discrimination, the problem for current federal policy lies not in the absence of aggressive anti-discrimination law, but instead in the absence of truly competitive markets.If this account is correct, the prescription for the future of anti-discrimination law is to seek ways to free up employers from the wide range of governmental disabilities – including, in fact, anti-discrimination law itself. The argument seems to be bolstered by the fact that some groups subject to past and present prejudice – most notably, Jews and Asian-Americans – have made substantial progress in employment at least in part because of the operation of competitive markets. (shrink)

In previous work, Gregory K. Dow created a broad and accessible overview of worker-controlled firms. In his new book, The Labor-Managed Firm: Theoretical Foundations, Dow provides the formal models that underpinned his earlier work, while developing promising new directions for economic research. Emphasizing that capital is alienable while labor is inalienable, Dow shows how this distinction, together with market imperfections, explains the rarity of labor-managed firms. This book uses modern microeconomics, exploits up-to-date empirical research, and constructs a unified theory (...) that accounts for many facts about the behavior, performance, and design of labor-managed firms. With a large number of entirely new chapters, comprehensive updating of earlier material, a critique of the literature, and policy recommendations, here Dow presents the capstone work of his career, encompassing more than three decades of theoretical research. (shrink)

The Eurozone crisis has triggered profound political and economic changes across the debtor member states. This article shows how the crisis and the imposition of austerity policies by the Troika have forced Spain to pursue internal devaluation as a means of economic adjustment through the reduction of real wages, increased pressure for liberalizing labor market institutions, and given Spain’s conservative government the opportunity and cover to pursue radical neoliberal labor law reforms. Spain’s 2012 labor law reforms went well beyond (...) external demands. The crisis and the Troika’s policy demands generated mass unemployment, devastated Spain’s Socialist Party, and created the enabling conditions for economic reforms. But domestic partisan considerations led the conservative People’s Party to commandeer the crisis to weaken unions as the electoral and organizational base of the center-left opposition. The PP channeled reform into an attack on labor that decisively shifted power to employers. As organized labor relations were reduced to concession bargaining, real wages have plummeted for the vast majority of Spaniards, even as mass unemployment and economic stagnation persist. Analysis suggests the emergence of a winner-take-all economy that will have lasting consequences for the Eurozone and the European Union. (shrink)