Temporary employment in advanced economies: drawing lessons from Spain

This study analyses the determinants of the rate of temporary employment in various OECD countries using both macro-level data drawn from the OECD and EUROSTAT databases, as well as micro-level data drawn from the 8th wave of the European Household Panel. Comparative analysis is set out to test different explanations originally formulated for the Spanish case. The evidence suggests that the overall distribution of temporary employment in advanced economies does not seem to be explicable by the characteristics of national productive structures. This evidence seems at odds with previous interpretations based on segmentation theories. As an alternative explanation, two types of supply-side factors are tested: crowding-out effects and educational gaps in the workforce. The former seems non significant, whilst the effects of the latter disappear after controlling for the levels of institutional protection in standard employment during the 1980s. Multivariate analysis shows that only this latter institutional variable, together with the degree of coordinated centralisation of the collective bargaining system, seem to have a significant impact on the distribution of temporary employment in the countries examined. On the basis of this observation, an explanation of the very high levels of temporary employment observed in Spain is proposed. This explanation is consistent with both country-specific and comparative evidence.

Barriers to Employment, March 2001

During the last five years, Iowa has experienced a shortage of workers and will continue to feel the impact of a short labor supply. As the state prepares to reverse this trend of a declining population, attracting immigrants and refugees has great potential. In addition, released preliminary reports from the 2000 Census are reporting growth of the Latino population in several Iowa counties. This survey was conducted as a way to supplement the information collected about the Latino population by the State Public Policy Group in 1999, Snapshot in Time: A clear view of the importance, value and impacts of the Latino population in central Iowa. (Una Foto Actual de la Comunicad Latina: Un panoramaclaro de la importancia, del valor, y de los impactos de la población Latina en el área central de Iowa.) Although this survey was enlightening, it was broad in scope. It was the goal of the agency to collect more specific data regarding workforce needs and barriers that the Latino population encounter in the State of Iowa. Although it was the desire to broaden the scope of the previous survey, it should be noted that the survey samples were not identical. But it is recognized that because the Latino population within the state is small, some of the respondents could have participated in both surveys. We were also hoping to benefit from the extensive work conducted by SPPG within the community as a way to increase the response rate for this survey. This executive summary highlights some of the most significant findings from the survey of Latinos residing in Central Iowa. This analysis centers on the impact the Latino population can have in filling the labor shortages and how Iowa can best embrace the new Iowan. In addition, some of the key findings could offer insight into removing unnecessary barriers that prevent immigrants from utilizing valuable work skills as they integrate into the workforce. This information may be insightful to community leaders and employers who want to welcome new immigrants into their community. The following diagram collected from the 2000 Census illustrates the percentage of Latinos residing in the state.

Condition of Employment, 2003

For much of American economic history, strength and manual dexterity could assure both a job and a reasonably comfortable standard of living. This is no longer the case as the industrial structure of American society has moved from agricultural to manufacturing to a service-producing economy. Today, we are changing the way we look at industries, jobs and, by extension, our economy. One of the responsibilities of Iowa Workforce Development is to study and report on those aspects of the economy that affect the working lives of Iowans – jobs, industrial employment, wages, and occupations. Condition of Employment 2003 is one of the vehicles we use to describe trends in the Iowa economy and the Iowa workplace.

Assessing the Political Viability of Labour Market Reform: The Case of Employment Protection

We analyze the political support for employment protection legislation. Unlike my previous work on the same topic, this paper pays a lot of attention to the role of obsolescence in the growth process. In voting in favour of employment protection, incumbent employees trade off lower living standards (because employment protection maintains workers in less productive activities) against longer job duration. The support for employment protection will then depend on the value of the latter relative to the cost of the former. We highlight two key deeterminants of this trade-off: first, the workers' bargaining power, second, the economy's growth rate-more precisely its rate of creative destruction.

Public Employment Relations Board - Notification Letter, July 26, 2006

State Audit Reports - Notification Letter

Body Size, Activity, Employment and Wages in Europe: A First Approach

In this article we present the first empirical analysis on the associations between body size, activity, employment and wages for several European countries. The main advantage of the present work with respect to the previous literature is offered by the comparability of the data and its large geographical coverage. According to our results, for Spanish women, being obese is associated with both a 9% lower wage and probability of being employed, while for Swedish and Danish, obesity is associated with a 12% lower probability of being employed, and a 10% lower wage respectively. In Belgium, obesity is associated with a 19% lower probability of being employed for men. These robust estimates are strongly informative and may be used as a simple statistical rule of thumb to decide the countries in which lab and field experiments should be run.

Employment Protection, International Specialization, and Innovation

We develop a model to analyse the implications of firing costs on incentives for R&D and international specialization. The Key idea is paying the firing cost, the country with a rigid labor market will tend to produce relatively secure goods, at a late stage of their product life cycle. Under international trade, an international product cycle emerges where, roughly, new goods are first produced in the low firing cost country will specialize in 'secondary innovations', that is, improvements in existing goods, while the low firing cost country will more specialize in 'primary innovation', that is, invention of new goods.

Report on a special investigation of programs administered by the Central Iowa Employment and Training Consortium (CIETC) and Iowa Workforce Development (IWD) for the period July 1, 2003 through December 15, 2005

Report on a special investigation of programs administered by the Central Iowa Employment and Training Consortium (CIETC) and Iowa Workforce Development (IWD) for the period July 1, 2003 through December 15, 2005

Report of recommendations to the Public Employment Relations Board for the year ending, June 30, 2006

Audit report on the Public Employment Relations Board for the year ended June 30, 2006

The effects of employment uncertainty and wealth shocks on the labor supply and claiming behavior of older American workers

Unemployment rates in developed countries have recently reached levels not seenin a generation, and workers of all ages are facing increasing probabilities of losingtheir jobs and considerable losses in accumulated assets. These events likely increasethe reliance that most older workers will have on public social insurance programs,exactly at a time that public finances are suffering from a large drop in contributions.Our paper explicitly accounts for employment uncertainty and unexpectedwealth shocks, something that has been relatively overlooked in the literature, butthat has grown in importance in recent years. Using administrative and householdlevel data we empirically characterize a life-cycle model of retirement and claimingdecisions in terms of the employment, wage, health, and mortality uncertainty facedby individuals. Our benchmark model explains with great accuracy the strikinglyhigh proportion of individuals who claim benefits exactly at the Early RetirementAge, while still explaining the increased claiming hazard at the Normal RetirementAge. We also discuss some policy experiments and their interplay with employmentuncertainty. Additionally, we analyze the effects of negative wealth shocks on thelabor supply and claiming decisions of older Americans. Our results can explainwhy early claiming has remained very high in the last years even as the early retirementpenalties have increased substantially compared with previous periods, andwhy labor force participation has remained quite high for older workers even in themidst of the worse employment crisis in decades.

Notes for a new guide to Keynes (I): Wages, aggregate demand, and employment

I revisit the General Theory's discussion of the role of wages inemployment determination through the lens of the New Keynesianmodel. The analysis points to the key role played by the monetarypolicy rule in shaping the link between wages and employment, andin determining the welfare impact of enhanced wage flexibility. I showthat the latter is not always welfare improving.

Employment consequences of restrictive permanent contracts: Evidence from Spanish labor market reforms

Temporary employment contracts allowing unrestricted dismissals wereintroduced in Spain in 1984 and quickly came to account for most new jobs.As a result, temporary employment increased from around 10% in themid-eighties to more than 30% in the early nineties. In 1997, however,the Spanish government attempted to reduce the incidence of temporaryemployment by reducing payroll taxes and dismissal costs for permanentcontracts. In this paper, we use individual data from the Spanish LaborForce Survey to estimate the effects of reduced payroll taxes anddismissal costs on the distribution of employment and worker flows. Weexploit the fact that recent reforms apply only to certain demographicgroups to set up a natural experiment research design that can be usedto study the effects of contract regulations. Our results show that thereduction of payroll taxes and dismissal costs increased the employmentof young workers on permanent contracts, although the effects for youngwomen are not always significant. Results for older workers showinsignificant effects. The results suggest a moderately elastic responseof permanent employment to non-wage labor costs for young men. We alsofind positive effects on the transitions from unemployment and temporaryemployment into permanent employment for young and older workers, althoughthe effects for older workers are not always significant. On the otherhand, transitions from permanent employment to non-employment increasedonly for older men, suggesting that the reform had little effect ondismissals.

Audit report on the Central Iowa Employment and Training Consortium (CIETC) for the year ended June 30, 2006

Audit report on the Central Iowa Employment and Training Consortium (CIETC) for the year ended June 30, 2006

Assesing the political viability of labour market reform: The case of employment protection

We analyze the political support for employment protection legislation.Unlike my previous work on the same topic, this paper pays a lot ofattention to the role of obsolescence in the growth process.In voting in favour of employment protection, incumbent employeestrade off lower living standards (because employment protectionmaintains workers in less productive activities) against longer jobduration. The support for employment protection will then depend onthe value of the latter relative to the cost of the former. Wehighlight two key deeterminants of this trade-off: first, the workers'bargaining power, second, the economy's growth rate-more preciselyits rate of creative destruction.