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on Labour Economics |
| By: | Fackler, Daniel; Fuchs, Michaela (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Hölscher, Lisa; Schnabel, Claus |
| Abstract: | "This paper analyzes whether startups offer job opportunities to workers potentially facing labor market problems. It compares the hiring patterns of startups and incumbents in the period 2003 to 2014 using administrative linked employer-employee data for Germany that allow to take the complete employment biographies of newly hired workers into account. The results indicate that young plants are more likely than incumbents to hire older and foreign applicants as well as workers who have instable employment biographies, come from unemployment or outside the labor force, or were affected by a plant closure. However, an analysis of entry wages reveals that disadvantageous worker characteristics come along with higher wage penalties in startups than in incumbents. Therefore, even if startups provide employment opportunities for certain groups of disadvantaged workers, the quality of these jobs in terms of initial remuneration seems to be low." (Author's abstract, IAB-Doku) ((en)) |
| JEL: | J31 J63 L26 M51 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201817&r=lab |
| By: | Herz, Benedikt; van Rens, Thijs |
| Abstract: | We investigate unemployment due to mismatch in the United States over the past three and a half decades. We propose an accounting framework that allows us to estimate the contribution of each of the frictions that generated labor market mismatch. Barriers to job mobility account for the largest part of mismatch unemployment, with a smaller role for barriers to worker mobility. We find little contribution of wage-setting frictions to mismatch. |
| Keywords: | job mobility; mismatch; structural unemployment; worker mobility |
| JEL: | E24 J61 J62 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12972&r=lab |
| By: | Kamila Cygan-Rehm; Christoph Wunder |
| Abstract: | This study estimates the causal effect of working hours on health. We deal with the endogeneity of working hours through instrumental variables techniques. In particular, we exploit exogenous variation in working hours from statutory workweek regulations in the German public sector as an instrumental variable. Using panel data, we run two-stage least squares regressions controlling for individual-specific unobserved heterogeneity. We find adverse consequences of increasing working hours on subjective and several objective health measures. The effects are mainly driven by women and parents of minor children who generally face heavier constraints in organizing their workweek. |
| Keywords: | working time, health, standard workweek, Germany |
| JEL: | I10 J22 J81 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7098&r=lab |
| By: | Laeven, Luc; McAdam, Peter; Popov, Alexander |
| Abstract: | We offer new evidence on the real effects of credit shocks in the presence of employment protection regulations by exploiting a unique provision in Spanish labor laws: dismissal rules are less stringent for Spanish firms with fewer than 50 employees, lowering the cost of hiring new workers. Using a new dataset, we find that during the financial crisis, healthy firms with fewer than 50 employees borrowing from troubled banks grew faster in sectors where capital and labor were sufficiently substitutable. This result does not obtain when we use a different cut-off for Spain or the same cut-off for firms in Germany. Our evidence suggests that labor market flexibility can dampen the negative effect of credit shocks by allowing firms to keep growing by substituting labor for capital. JEL Classification: G21, J80, D20 |
| Keywords: | capital-labor substitution, credit crunch, employment protection, firmgrowth |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20182166&r=lab |
| By: | Becker, Sascha O. (University of Warwick); Grosfeld, Irena (Paris School of Economics); Grosjean, Pauline (UNSW); Voigtländer, Nico (UCLA); Zhuravskaya, Ekaterina (Paris School of Economics) |
| Abstract: | We exploit a unique historical setting to study the long-run effects of forced migration on investment in education. After World War II, the Polish borders were redrawn, resulting in large-scale migration. Poles were forced to move from the Kresy territories in the East (taken over by the USSR) and were resettled mostly to the newly acquired Western Territories, from which Germans were expelled. We combine historical censuses with newly collected survey data to show that, while there were no pre-WWII differences in education, Poles with a family history of forced migration are significantly more educated today. Descendants of forced migrants have on average one extra year of schooling, driven by a higher propensity to finish secondary or higher education. This result holds when we restrict ancestral locations to a subsample around the former Kresy border and include fixed effects for the destination of migrants. As Kresy migrants were of the same ethnicity and religion as other Poles, we bypass confounding factors of other cases of forced migration. We show that labor market competition with natives and selection of migrants are also unlikely to drive our results. Survey evidence suggests that forced migration led to a shift in preferences, away from material possessions and towards investment in a mobile asset – human capital. The effects persist over three generations |
| Keywords: | Poland ; Forced Migration ; Uprootedness ; Human Capital |
| JEL: | N33 N34 D74 I25 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1164&r=lab |
| By: | Ibrahim Bousmah (Department of Economics, University of Ottawa, Ottawa, ON); Gilles Grenier (Department of Economics, University of Ottawa, Ottawa, ON); David Gray (Department of Economics, University of Ottawa, Ottawa, ON) |
| Abstract: | We use the Levenshtein linguistic distance measure to explore whether the distance between an immigrant’s mother tongue and a Canadian official language (English or French) has an impact on his/her economic integration into the labour market. Using microdata from the master files of the 2001 and 2006 Canadian censuses and from the 2011 National Household Survey, we investigate the relationship between linguistic distance and the intensity of use of English and French at work in the Montreal metropolitan area. That region is characterized by the presence of sizeable French and English speaking communities, as well as of a large number of immigrants from a wide variety of linguistic backgrounds. Those elements of linguistic diversity interact in the context of English being the lingua franca. We find that linguistic distances between immigrants’ mother tongues and English and French have an important impact on the relative intensities of use of the two Canadian official languages at work. We further investigate the role of the languages used at work on the earnings of immigrants by estimating earnings functions. We find that the use of both French and English are remunerated in the labour market, but that using English at work has a larger impact on earnings. |
| Keywords: | Linguistic distance, language of work, immigrants, Montreal, Canada, earnings. |
| JEL: | C21 C25 J01 J15 J31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1805e&r=lab |
| By: | Andreas Steinhauer (University of Edinburgh) |
| Abstract: | In this paper I provide empirical evidence that the strength of beliefs regarding the harm children suffer when their mothers work plays an important role in explaining gender gaps in labor market outcomes and fertility trends. I exploit a unique setting in Switzerland and compare outcomes of one cohort of Swiss women born in the 1950s either into the French or German ethno-linguistic group. This allows me to compare outcomes of women exposed to different norms regarding working mothers while holding constant typical confounding factors such as composition, labor market opportunities, and work-family policies. Consistent with the strong belief that children suffer with working mothers in the German region, I find that German-born women are 15-25% less likely to work as mothers and 20-20% more likely to remain childless compared to their French-born peers. Only the extensive margins show marked differences and especially among the highly educated. I argue that an identity framework along the lines of Akerlof and Kranton (2000) can rationalize these patterns in a tractable way. |
| Keywords: | famale employment; childlessness; famale identity |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1a68qg411o9bg9jp7fhgh60n5p&r=lab |
| By: | James Browne (OECD); Herwig Immervoll (OECD); Rodrigo Fernandez (OECD); Dirk Neumann (OECD); Daniele Pacifico (OECD); Céline Thévenot (OECD) |
| Abstract: | In the aftermath of the financial and economic crisis, large shares of working-age individuals in Estonia either did not work or only to a limited extent. By 2013, several years after the start of the labour-market recovery, 18% were still without employment during the entire year, and a further 13% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how the empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Estonia were low skill levels, health limitations and limited work experience. Financial disincentives, care responsibilities and scarce job opportunities were less widespread overall, although important barriers for some groups. A notable finding is that almost one third of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2018–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:206-en&r=lab |
| By: | Nicola Düll (OECD); Céline Thévenot (OECD); Herwig Immervoll (OECD); James Browne (OECD); Rodrigo Fernandez (OECD); Dirk Neumann (OECD); Daniele Pacifico (OECD) |
| Abstract: | .In the aftermath of the financial and economic crisis, large shares of working-age individuals in Portugal either did not work or only to a limited extent. As the employment rate bottomed out in 2013, 29% were without employment during the entire year, and a further 10% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how these empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Portugal were low education/skills, a lack of recent work experience, scarce job opportunities and health problems. Financial disincentives and care responsibilities were less widespread overall, although important barriers for some groups. A striking finding is that 45% of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2018–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:210-en&r=lab |
| By: | Rodrigo Fernandez (OECD); Herwig Immervoll (OECD); Daniele Pacifico (OECD); James Browne (OECD); Dirk Neumann (OECD); Céline Thévenot (OECD) |
| Abstract: | In the aftermath of the financial and economic crisis, large shares of working-age individuals in Spain either did not work or only to a limited extent. As the employment rate bottomed out in 2013, 30% were without employment during the entire year, and a further 15% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how these empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Spain were a lack of work experience, low education and skill levels, and scarce job opportunities. Although financial disincentives, health limitations and care responsibilities were less widespread overall, they remained important barriers for some groups. A striking finding is that 45% of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2018–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:207-en&r=lab |
| By: | Gürtzgen, Nicole; Nolte, André; Pohlan, Laura; van den Berg, Gerard J. |
| Abstract: | This paper studies effects of the introduction of a new digital mass medium on reemployment of unemployed job seekers. We combine data on high-speed (broadband) internet availability at the local level with individual register data on the unemployed in Germany. We address endogeneity by exploiting technological peculiarities in the network that affected the roll-out of high-speed internet. The results show that high-speed internet improves reemployment rates after the first months of the unemployment spell. This is confirmed by complementary analysis with individual survey data suggesting that online job search leads to additional formal job interviews after a few months in unemployment. |
| Keywords: | unemployment,online job search,information frictions,matching technology,search channels |
| JEL: | J64 K42 H40 L96 C26 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:18030&r=lab |
| By: | Monras, Joan |
| Abstract: | Internal migration can respond to local shocks through either changes in in- or out-migration rates. This paper documents that most of the response of internal migration is accounted for by variation in in-migration. I develop and estimate a parsimonious general equilibrium dynamic spatial model around this fact. I then use the model to evaluate the speed of convergence and long run change in welfare across metropolitan areas given the heterogeneous incidence of the Great Recession at the local level. The paper shows that while there are some lasting effects of the Great Recession across locations, at least 60 percent of the initial differences potentially dissipate across space within around 10 years. This is true even when locals from the most affected metropolitan areas do not out-migrate in higher proportions in response to local shocks. |
| Keywords: | Internal migration and local labor market dynamics |
| JEL: | F22 J20 J30 J43 J61 R23 R58 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12977&r=lab |
| By: | Vaishali Zambre |
| Abstract: | Several studies show that young women start with lower wage expectations than men, even before entering the labor market and that this partly translates into the actual gender wage gap through effects on educational choice and the formation of reservation wages. Building on the theoretical reasoning of compensating differentials proposing that the labor market compensates higher wage risk with higher wages, this study investigates whether the gender gap in wage expectations can be explained by individuals anticipating this form of risk compensation. Relying on a unique survey on German high school graduates in which we elicited information on the entire distribution of expected wages, this study documents that already at this early stage, female students expect to earn around 16% less than their male counterparts. At the same time, they expect lower wage risk as measured by the individual-specific dispersion in wage expectations. I decompose the gender gap into components attributable to socio-demographic factors, academic performance and skills, intended college major choice, career motives, personality traits, economic preferences, measures for students’ confidence and expected wage risk. The results indicate that anticipated compensation for wage risk plays a major role in explaining the gender gap in wage expectations suggesting that females have lower wage expectations because they are willing to trade off higher wages for lower wage risk. The results of this study shed light on why young women make different choices regarding education and careers, thereby enhancing our understanding of the observed gender wage gap. |
| Keywords: | Wage expectations, gender gap, wage risk, risk compensation |
| JEL: | I28 J18 D04 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1742&r=lab |
| By: | Daniele Pacifico (OECD); Herwig Immervoll (OECD); James Browne (OECD); Rodrigo Fernandez (OECD); Dirk Neumann (OECD); Céline Thévenot (OECD) |
| Abstract: | In the aftermath of the financial and economic crisis, large shares of working-age individuals in Lithuania either do not work or only to a limited extent. By 2013, several years after the start of the labour-market recovery, 21% were still without employment during the entire year, and a further 11% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how these empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Lithuania were health limitations, limited work experience, and scarce job opportunities. Although financial disincentives and care responsibilities were less widespread overall, they remained important barriers for some groups. A notable finding is that just over one third of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2018–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:205-en&r=lab |
| By: | James Browne (OECD); Herwig Immervoll (OECD); Rodrigo Fernandez (OECD); Dirk Neumann (OECD); Daniele Pacifico (OECD); Céline Thévenot (OECD) |
| Abstract: | In the aftermath of the financial and economic crisis, large shares of working-age individuals in Ireland either did not work or only to a limited extent. As the labour-market recovery gathered pace during 2013, 32% were without employment during the entire year, and a further 14% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates how the empirical results can inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Ireland were limited work experience, low skill levels, and scarce job opportunities. Although financial disincentives, health problems and care responsibilities were less widespread overall, they remained important barriers for some groups. A notable finding is that just under 40% of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2018–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:209-en&r=lab |
| By: | Daniele Pacifico (OECD); James Browne (OECD); Rodrigo Fernandez (OECD); Herwig Immervoll (OECD); Dirk Neumann (OECD); Céline Thévenot (OECD) |
| Abstract: | In the aftermath of the financial and economic crisis, large shares of working-age individuals in Italy either did not work or only to a limited extent. As the employment rate bottomed out in 2013, 32% were without employment during the entire year, and a further 7% had weak labour-market attachment, working only a fraction of the year, or on restricted working hours. This paper applies a novel method for measuring and visualising employment barriers of individuals with no or weak labour-market attachment, using household micro-data. It first develops indicators to quantify employment obstacles under three broad headings: (i) work-related capabilities, (ii) incentives, and (iii) employment opportunities. It then uses these indicators in conjunction with a statistical clustering approach to identify unobserved (“latent”) groups of individuals facing similar combinations of barriers. The resulting typology of labour-market difficulties provides insights on the most pressing policy priorities in supporting different groups into employment. A detailed policy discussion illustrates the use of these empirical results to inform people-centred assessments of existing labour-market integration measures and of key challenges across different policy areas and institutions. The most common employment obstacles in Italy were limited work experience, low education and skill levels, and scarce job opportunities. Although financial disincentives, health limitations and care responsibilities were less widespread overall, they remained important barriers for some groups. A striking finding is that more than half of jobless or low-intensity workers face three or more simultaneous barriers, highlighting the limits of narrow policy approaches that focus on subsets of these employment obstacles in isolation. |
| JEL: | C38 H31 J2 J6 J8 |
| Date: | 2018–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:208-en&r=lab |
| By: | Bruni, Michele |
| Abstract: | China still lags behind Europe along the path of the demographic transition and therefore is still much younger. However, due to the speed with which the fertility rate dropped and life expectancy increased, China ageing process will proceed at a very fast space and around the middle of the century the population of China is projected to be as old as that of France and the UK and older than that of the USA. The paper tries to evaluate the labour market and welfare implications of this process, also by an economic indicator of dependency and socioeconomic burden. |
| Keywords: | Ageing,China,EU,dependency indicators,technological change,migrations |
| JEL: | J11 J14 J21 F22 O33 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:222&r=lab |
| By: | Giuntella, Osea; Mazzonna, Fabrizio; Nicodemo, Catia; Vargas-Silva, Carlos |
| Abstract: | This paper studies the effects of immigration on the allocation of occupational physical burden and work injury risks. Using data for England and Wales from the Labour Force Survey (2003-2013), we find that, on average, immigration leads to a reallocation of UK-born workers towards jobs characterized by lower physical burden and injury risk. The results also show important differences across skill groups. Immigration reduces the average physical burden of UK-born workers with medium levels of education, but has no significant effect on those with low levels. We also find that that immigration led to an improvement selfreported measures of native workers’ health. These findings, together with the evidence that immigrants report lower injury rates than natives, suggest that the reallocation of tasks could reduce overall health care costs and the human and financial costs typically associated with workplace injuries. |
| Keywords: | Immigration,labor-market,physical burden,work-related injuries,health |
| JEL: | J61 I10 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:215&r=lab |
| By: | Eric J. Brunner (University of Connecticut); Joshua Hyman (University of Connecticut); Andrew Ju (University of Connecticut) |
| Abstract: | School finance reforms caused some of the most dramatic increases in intergovernmental aid from states to local governments in U.S. history. We examine whether teacher unions affected the fraction of reform-induced state aid that passed through to local spending and the allocation of these funds. Districts with strong teacher unions increased spending nearly dollar-for-dollar with state aid, and spent the funds primarily on teacher compensation. Districts with weak unions used aid primarily for property tax relief, and spent remaining funds on hiring new teachers. The greater expenditure increases in strong union districts led to larger increases in student achievement. |
| Keywords: | School finance reform, teachers’ unions, intergovernmental grants |
| JEL: | H7 I2 J5 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2018-11&r=lab |
| By: | Nakamura, Hideki; Zeira, Joseph |
| Abstract: | This paper presents a model of technical change that combines two lines of research together. It is a task based model, in which automation turns labor tasks to mechanized ones, and there is also a continuous addition of new labor tasks, as in the expanding variety literature. We impose three simple restrictions on the model. The first is that all new tasks are adopted. The second is that all new automation innovations are adopted and the third is that the share of labor does not converge to zero in the long run. We show that these restrictions imply that unemployment due to automation is expected to converge to zero over time. |
| Keywords: | automation; growth; Labor Income Share; technical change; unemployment |
| JEL: | J64 O14 O30 O40 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12974&r=lab |
| By: | Hatta, Tatsuo |
| Abstract: | In Japan, the court requires job restoration rather than a severance payment from a firm after it decides that a dismissal has been abusive. This results in a high settlement cost for termination. This paper makes two proposals for introducing severance payments to reduce settlement costs in Japan. The first applies to existing contracts and proposes to specify levels of severance payments that would replace the current job restoration requirement after the court determines that a case is abusive. The second applies to new employees either for a recently vacated position or a new position and proposes vacancy decontrol, which allows firms to set the levels of severance payments freely while also honoring the existing contracts. Within this category, this paper proposes government-assisted vacancy decontrol, a transitional measure, where the government sets a minimum level of statutory severance payment, which is equal to six months of wages for a worker who has worked for 20 years, following the Taiwan precedent. After the need for the transitional measure is dissolved, complete vacancy decontrol should be introduced, abolishing the statutory severance payment. We have proposed that even at this stage, the government should publicly set a default level of the severance payment, which a firm should observe unless an explicit agreement or contract stipulates otherwise. The government should immediately introduce some form of vacancy decontrol for senior workers who have already retired from a regular job. |
| Keywords: | Dismissal regulation, vacancy decontrol, severance payment, Taiwan, exit payment, job restoration requirement, lifetime employment, Ponzi scheme, rapid economic growth, incomplete contract, human capital investment, Labor Standard Act, unemployment insurance, employment-at-will, seniority-based wage system, J08, J38, J41, J48, J88, J83, K12, K31, K41, D61 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:agi:wpaper:00000142&r=lab |