The impact of equity markets and corporate governance on labour market flexibility

Drawing from various literatures, this article explores links between equity markets and labour market flexibility. Various data sources are used to test relationships for a set of OECD countries, controlling for other likely influences on flexibility such as government and industrial relations institutions. The results are generally supportive as regards employment flexibility: equity market trading activity is associated with shorter job tenure, higher activity rates, and greater employment change over the cycle. However, the relationship between equity markets and pay flexibility is less statistically robust to the addition of controls.

Mapping the Governance Reform of Welfare to Work in Britain under New Labour

This article draws on Newman's (2001, 2007) typology of the modernization of governance under New Labor, to examine the development of British welfare to work administration. Concentrating on the delivery of active labor market policy, the article suggests network forms of governance occupy a marginal role in welfare to work delivery. Managerialist and hierarchical forms of governance dominate administration of activation policy. In accordance with UK tradition, a national centralized, top down system exercises control of social security and employment services administration, but increasingly seeks to realize its goals through a market system of delivery.

Hiring Incentives and Labour Force Participation in Italy

A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We investigate this relationship within a policy evaluation framework; in particular, we examine how labour supply reacted in Italy to a recent subsidy in favour of open-ended contracts. This subsidy increased labour force participation by 1.4% in 2001 and 2.1% in 2002. This increase was concentrated on males aged 35-54, with a low or at most a secondary schooling level.