A Flowchart Approach to Malaysia's Automobile Industry Cluster Policy

In this paper, we apply a flowchart approach to investigate Malaysia's automobile cluster policy. We investigate whether the industrial cluster policy has been successful or not, suggest policy prescriptions, and propose a way to prioritize policy measures. Our flowchart approach leads to the following three policy prescriptions: (1) Malaysian firms should establish sites for exporting compact cars with automatic transmissions; (2) actors in the public, semi-public and private sector should work to upgrade skilled labor; and (3) the central government should promote liberalization and deregulation to attract foreign firms into the supporting industries.

Monetary Policy Effects in Developing Countries with Minimum Wages

Using a Dynamic General Equilibrium (DGE) model, this study examines the effects of monetary policy in economies where minimum wages are bound. The findings show that the monetary-policy effect on a binding-minimum-wage economy is relatively small and quite persistent. This result suggests that these two characteristics of monetary policy in the minimum-wage model are rather different from those in the union-negotiation model which is often assumed to account for industrial economies.

The Opportunity Costs of STEM Degrees and the Unmet Needs of the Low-Skilled: Two labour market problems explained. CEPS Policy Brief No. 295, 26 June 2013

There is general consensus that to achieve employment growth, especially for vulnerable groups, it is not sufficient to simply kick-start economic growth: skills among both the high- and low-skilled population need to be improved. In particular, we argue that if the lack of graduates in science, technology, engineering and mathematics (STEM) is a true problem, it needs to be tackled via incentives and not simply via public campaigns: students are not enrolling in ‘hard-science’ subjects because the opportunity cost is very high. As far as the low-skilled population is concerned, we encourage EU and national policy-makers to invest in a more comprehensive view of this phenomenon. The ‘low-skilled’ label can hide a number of different scenarios: labour market detachment, migration, and obsolete skills that are the result of macroeconomic structural changes. For this reason lifelong learning is necessary to keep up with new technology and to shield workers from the risk of skills obsolescence and detachment from the labour market.

Unblocking the Lifeline of Talent. CEPS Policy Brief No. 306, 6 December 2013

Against the background of looming demographic decline, the departure of the baby-boom generation from European labour markets and growing economic competitiveness from emerging economies, this CEPS Policy Brief, published jointly with the Bertelsmann Stiftung, looks into the potential benefits of increased intra-EU labour mobility. The authors examine the ‘German case’ on EU labour mobility, digging below the surface of the aggregate data. They offer proposals on how to foster a European fair deal on talent, one that would benefit the EU as a whole. The paper concludes with policy recommendations on how to increase the potential benefits of the freedom of movement for both individual EU citizens and for the EU as a whole.

Many worlds of the ‘low-skilled’, but only one generic policy. CEPS Policy Brief No. 312, 10 January 2014

This paper, which draws on research findings from the NEUJOBS project, encourages EU and national policy-makers to invest in a more comprehensive view of the phenomenon of ‘low-skilledness’. The ‘low-skilled’ label can hide a number of different scenarios: labour market detachment, migration and obsolete skills that are the result of macroeconomic structural changes. For this reason, the authors argue that it is necessary to promote lifelong learning to allow workers to keep pace with new technologies and to shield workers from the risk of skills obsolescence and detachment from the labour market.

Land, Labour and Capital Markets in European Agriculture: Diversity under a Common Policy. CEPS Paperback. October 2013

Well-functioning factor markets are an essential condition for the competitiveness and sustainable development of agriculture and rural areas. At the same time, the functioning of the factor markets themselves is influenced by changes in agriculture and the rural economy. Such changes can be the result of progress in technology, globalisation and European market integration, changing consumer preferences and shifts in policy. Changes in the Common Agricultural Policy (CAP) over the last decade have particularly affected the rural factor markets. This book analyses the functioning of factor markets for agriculture in the EU-27 and several candidate countries. Written by leading academics and policy analysts from various European countries, these chapters compare the different markets, their institutional framework, their impact on agricultural development and structural change, and their interaction with the CAP. As the first comparative study to cover rural factor markets in Europe, highlighting their diversity − despite the Common Agricultural Policy and an integrated single market − Land, Labour & Capital Markets in European Agriculture provides a timely and valuable source of information at a time of further CAP reform and the continuing transformation of the EU's rural areas.

A success story for the EU and seasonal workers’ rights without reinventing the wheel. EPC Policy Brief, 28 March 2014

Despite the economic crisis with resulting high unemployment, EU economies face vacancies across the skill spectrum. At the low end there is a structural need when it comes to seasonal work. The Seasonal Workers Directive was launched at the same time as the Inter-Corporate Transferees (ICTs) Directive in 2010 – as part of the Commission’s 2005 Policy Plan on Legal Migration – and initially appeared to be more troublesome, with the stigma of ‘migrants stealing local jobs’ haunting it. However, without the provisions for intra-EU mobility that have plagued the ICTs Directive, the Seasonal Workers Directive became less problematic despite the fact that seasonal workers are more numerous than intra-corporate transferees. This Policy Brief looks at how negotiating parties ensured a focus not only on the needs of the European labour market, but also saw an opportunity to bring added value to seasonal workers’ rights, through equal treatment to EU nationals. It assesses the final outcome of three and a half years of intra-EU negotiation, looking at the rights gained for seasonal migrants, the level of harmonization achieved, and the future of migration policy with the strategic guidelines for the area of freedom, security and justice in mind.

Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel data analysis across EU regions. Factor Markets Working Paper No. 28, July 2012

This paper deals with the determinants of labour out-migration from agriculture across 149 EU regions over the 1990–2008 period. The central aim is to shed light on the role played by payments from the common agricultural policy (CAP) on this important adjustment process. Using static and dynamic panel data estimators, we show that standard neoclassical drivers, like relative income and the relative labour share, represent significant determinants of the intersectoral migration of agricultural labour. Overall, CAP payments contributed significantly to job creation in agriculture, although the magnitude of the economic effect was rather moderate. We also find that pillar I subsidies exerted an effect approximately two times greater than that of pillar II payments.

The WTO and Female Labor Rights in Developing Countries. IES WORKING PAPER 3/2008

The impacts of WTO on women’s labour rights in the developing countries have been raised to the international agenda by various nongovernmental organizations. On the one hand it is assumed that international trade policies are gender neutral. On the other hand a number of authors hold the view that the negative impacts of WTO policies are more pronounced on female than male workers. This paper takes a critical look at these claims. It argues that the impact of the WTO system, the driving force of trade liberalization, on women’s labour rights in the developing countries is a complicated issue, because the effects have been both negative and positive. In support of this claim, this paper first briefly reviews the international framework for the protection of women’s labour rights. Next, the WTO agreements and policies are analysed insofar as they are relevant for the protection of women’s labour rights. The analysis covers, for example, the use of the trade policy review mechanism and restrictions of trade on grounds of violation of public morals.. Finally, a case study is conducted on the situation of female workers in Bangladesh and Pakistan, countries that have recently undergone a liberalization of trade in the textiles and clothing sectors. It is concluded that the increase of international trade in the developing countries has created many work opportunities for women, helped them to become more independent and allowed them to participate in the society more actively. However, it is at the same time posited that in order to comply with its own objectives of raising standards of living and full employment, the WTO should engage itself in active policies to overcome the negative aspects of trade on female workers in the developing countries.

EU labour migration policy by other means? The potential impact of EU economic governance reforms on labour migration policymaking. EPC Policy Brief, 13 February 2015

Over the last 15 years, Member States have been quite reluctant to address labour migration issues at EU level. Will the forthcoming years reverse the tide and lead to the developement of ambitious and common actions in this policy field? There are currently no strong signs of such a move towards a greater management of labour migration policy at EU level. However, Yves Pascouau argues in this FIERI Working paper that the deadlock may be broken with the development of new policy tools taking place in the field of economic governance. More precisely, he underlines that recipes adopted to overcome the so-called ‘euro crisis’ may well have an impact on labour migration issues.As a consequence, this could initiate a coordination process which was not called for by home affairs decision-makers.

Labour Mobility in Europe: An untapped resource? CEPS Policy Brief No. 327, March 2015

Despite public perceptions, labour mobility is low in the EU, particularly within the euro area. The authors of this Policy Brief make four main points: first, that the economic and financial crisis has affected mobility patterns by redirecting flows away from the periphery, thus showing the limits of labour mobility potential within the current eurozone - largely due to the negligible mobility of nationals from large countries hit by the crisis. Second, east-west mobility has not been fundamentally affected by the crisis, and ten years after the eastern enlargement the number of East Europeans living in EU15 should be of no overall concern. Third, the long-term economic effects of mobility are uncertain, but potential negative effects are more likely to show up in sending countries than in receiving ones. Finally, in view of the lessons learned from the economic crisis, the Commission and member states should adopt a longer-term view on labour mobility. The authors recommend a further upgrade of job-matching tools, namely the EURES system, and should foster better recognition of qualifications and the exchange of best practices among mobility networks. In order to improve mobility in the longer term, the Commission and member states should improve the mobility of third-country nationals – starting with those completing tertiary education at an EU institution and able to find employment. The aim of improving mobility gives new impetus to the ‘mother tongue + two foreign languages’ objective and the European Benchmark of Language Competences Initiative, in particular competence in the first foreign language taught at school.

Immigrant labour market participation in Belgium - high time to mainstream. IES Policy Brief Issue 2015/2 March 2015

The gap in labour market participation between natives and people with an immigrant background is significant in Belgium, one of the largest in the OECD. In this Policy Brief, we present research1 that investigated one of the possible causes of this poor performance, and we propose three main policy recommendations. The research project studied whether Belgium’s complex federal state structure, and the subsequent division of responsibilities and lack of intergovernmental cooperation helps to explain this poor performance. The study concluded that governance complexity does not appear to be a main cause for Belgium’s poor results. However, more policy coordination would improve policy efficiency.

The EU Blue Card - is there a need for a more comprehensive approach? IES Policy Brief Issue 2015/3 June 2015

This Policy Brief reviews the implementation of the EU Blue Card (BC) Directive in Member States and offers some suggestions on how to improve its potential. Firstly, it traces back the origin of the current partitioned approach in labour migration and the objectives that an EU labour migration policy should achieve according to the Commission. Secondly, it reports on the content of the directive and its implementation in Member States. Thirdly, there is an analysis of the weaknesses of the directive in terms of numbers of BCs issued and harmonization achieved. Finally, recommendations are put forward on how to improve EU labour migration policy.

Arbeidsmarktparticipatie van mensen met een migratie-achtergrond in België: hoog tijd om te mainstreamen Issue 2015/2 maart 2015 = Immigrant labour market participation in Belgium - high time to mainstream. IES Policy Brief Issue 2015/2 March 2015.

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Une meilleure insertion professionelle des personnes issues de l’immigration: allons au mainstreaming Issue 2015/2 mars 2015 = Immigrant labour market participation in Belgium - high time to mainstream. IES Policy Brief Issue 2015/2 March 2015

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