The aim of this study was to identify common determinants of the shape of labour market institutions in the group of 25 post-socialist countries during the transition period. The exclusion of countries' fixed effects (with the use of least squares dummy variable — LSDV model) showed that conducted market reforms (especially the privatisation of state-owned companies and enterprise restructuring) have determined the shape of labour market institutions in post-socialist countries. However, the levels of political liberty, protection of property rights, international trade freedom and government expenditures did not occur to have influenced the labour market institutions in these economies.
Considering the contribution of the distribution of individual wages and earnings to that of household incomes we find two separate literatures that should be brought together, and bring 'new institutions' into play. Growing female employment, rising dual-earnership and part-time employment underline its relevance. We discuss the measurement of wage inequality, data sources, and stylized facts of wage dispersion for rich countries. The literature explaining the dispersion of wage rates and the role of institutions is evaluated, from the early 1980s to the recent literature on job polarization and tasks as well as on the minimum wage. Distinguishing between supply-and-demand approaches and institutional ones, we find the former challenged by the empirical measurement of technological change and a risk of ad hoc additions, without realizing their institutional preconditions. The institutional approach faces an abundance of institutions without a clear conceptual delineation of institutions and their interactions. Empirical cross-country analysis of the correlation between institutional measures and wage inequality incorporates unemployment and working hours dynamics, discussing the problems of matching individuals to their relevant institutional framework. Minimum wage legislation and active labour market policies come out negatively correlated to earnings inequality in US and EU countries.
In: F. Koster and O. van Vliet (2014), 'Labour Market Institutions in Europe: Differences, Developments, Consequences and Reforms', in: M. Beblavý, I. Maselli and M. Veselková (eds.), Let's Get to Work! The Future of Labour in Europe. Vol. 1., Centre for European Policy Studies, Brussels, pp. 185–206.
Defence Date: 23 September 2010 ; Examining Board: Prof. Rainer Bauböck, EUI (Supervisor) Prof. Virginie Guiraudon, CNRS Lille (External Supervisor) Prof. Desmond King, University of Oxford Dr. Christina Boswell, University of Edinburgh ; First made available online: 05 August 2021 ; The aim of this thesis is to investigate the understudied nexus between immigration and labour market institutions. Bridging migration theory and comparative political economy, it is argued that variation in labour market institutions shapes variation in levels of labour immigration and the type of employment undertaken by migrant workers across advanced democracies. This theory is supported by empirical evidence from Western Europe and in particular Italy and Ireland. Furthermore, it is explored whether, given the relationship between labour market institutions and labour immigration, policymakers are stimulated by concerns regarding immigration - the 'Migrant Worker Factor' - to reform labour market institutions. More specifically, it is investigated whether the Migrant Worker Factor stimulated employment standards compliance (ESC) system reforms and the development of active labour market policy (ALMP) in Ireland, Italy and shadow cases Britain and France during the period 1997 - mid 2008. It is also explored whether the Migrant Worker Factor was part of the rationale behind vocational education and training (VET) system reforms of the same period in Ireland and Britain. These case studies found empirical evidence that concerns regarding labour immigration can be a causal factor in the reform of labour market institutions. Certain ESC system reforms were partly motivated by the aim of safeguarding domestic worker jobs and employment standards, as well as controlling migrant inflows. Moreover, in some cases, ALMP development and VET system reforms in part aimed to provide domestic alternatives to migrant workers. The impact of the Migrant Worker Factor depends on the level of concern regarding labour immigration in a given state. Furthermore, the influence of this variable on labour market institutional reform is mediated by learning and coordination mechanisms and assumptions regarding the substitutability of migrant workers. The Migrant Worker Factor is also more likely to stimulate labour market institutional reform when there are converging political or structural pressures for reform.
"This book explains the role of formal labour market institutions in keeping the labour utilisation in Central and Eastern Europe above the level characteristic for Western European states. It provides an innovative and enriching take on labour utilisation at large and how various formal labour market institutions can affect the ongoing trend in labour utilisation in a way that is not covered by the extant literature. The impact of labour market institutions on labour market outcomes is analysed throughout twelve chapters, both from a cross-country perspective and in detailed case-studies, by twenty-one labour market experts from various CEE countries. Most chapters are based on empirical methods yet are presented in an easy-to-follow way in order to make the book also accessible for a non-scientific audience. The volume explores three key questions: How can labour utilisation be increased by labour market institutions? Which CEE countries managed to create a labour market institutional framework beneficial for labour utilisation? How should the labour market institutions in CEE countries be reformed in order to increase labour utilisation? The book argues that the legacy of transition reforms and a centrally planned past is still relevant in explaining common patterns among CEE countries and concludes that increasing the stock of skills accumulated by the employed and improving utilisation of these skills seems to be the first-best solution to increase labour utilisation. The book will be of interest to postgraduate researchers and academics in the fields of labour economics, regional economics, and macroeconomics as well as scholars interested in adopting an institutional analysis approach. Additionally, due to the broader policy implications of the topic, the book will appeal to policymakers and experts interested in labour economics."
This E-book addresses one of the most hotly debated questions in the Belgian federation: To what extent should some federal labour market institutions be decentralized? "Labour market institutions" include formal organizations, laws, rules and policies that affect the functioning of the labour market. It starts with the point of view of the ministers Marcourt and Vandenbroucke (henceforth, MV) who are in charge of Employment in respectively the Walloon and the Flemish governments. This joint viewpoint appeared in newspapers on December 8, 2008. This viewpoint, briefly summarized in Section 1, establishes a list of institutions that should remain federal and, with a certain degree of precision, others that should be decentralized. The rest of the E-book is made of comments on this viewpoint. These comments are made by academics in economics and sociology and by the Minister Cerexhe who is in charge of employment in Brussels.
This E-book addresses one of the most hotly debated questions in the Belgian federation: To what extent should some federal labour market institutions be decentralized? "Labour market institutions" include formal organizations, laws, rules and policies that affect the functioning of the labour market. It starts with the point of view of the ministers Marcourt and Vandenbroucke (henceforth, MV) who are in charge of Employment in respectively the Walloon and the Flemish governments. This joint viewpoint appeared in newspapers on December 8, 2008. This viewpoint, briefly summarized in Section 1, establishes a list of institutions that should remain federal and, with a certain degree of precision, others that should be decentralized. The rest of the E-book is made of comments on this viewpoint. These comments are made by academics in economics and sociology and by the Minister Cerexhe who is in charge of employment in Brussels.
SUMMARYEvidence during the nineties about the response of real wages to shocks highlights that this response is substantially lower in European countries than in the United States and that there are important differences among European countries. Which are the reasons that explain these different reactions? In this paper, we apply meta‐analytical techniques in order to provide a quantitative summary of the available evidence regarding the influence of labour market institutions on real wage flexibility. We find that the design of the study affects the obtained results, and that in more deregulated labour markets with a lower presence of trade unions, this response is particularly larger.
This report consists of a comprehensive overview of labour market institutions in the small Pacific island countries in order to propose recommendations to improve the performance of their labour markets. We pay particular attention to three countries: Fiji, Palau and Papua New Guinea. We focus on the main pillars of labour market institutions, as employment protection legislation, minimum wage, and labour organization. The analysis considers the possibilities for institutional change in the next future. The main guidelines for eventual reforms are discussed, for the region as a whole and for the above three countries.
"Although all economists agree that a major precondition for employment creation is sustainable economic growth of at least 2% per annum, they disagree about the effects of the institutional framework on the labour market: Optimistic observers stress the high performance of external trade and the highly specialized small and medium-sized companies operating at high potential. These have a well-qualified workforce, which relies on the existence of a highly differentiated system of labour market institutions that provide a reliable basis for sustainable economic development. These analysts point to the fact that economic growth and the demand for labour is appropriately restrained by the extremely low domestic demand. Conversely, pessimistic observers blame the relatively high labour costs resulting from institutional regulation by labour and social law, collective bargaining and labour market policies as the main barrier to the creation of employment. As the German employment system can be generally characterised as highly protective and favourable to employees in respect to their labour rights, democratic participation in the economic sphere and the level of social protection, this article addresses the question of the consequences of these two diametrical strategies for the underlying principles of the German employment system. The main argument will show that intentional government reforms are a factor that only partly accounts for the ongoing basic changes. Other factors that influence the system are ongoing changes in social practices and initiatives or rulings by supra-national organisations." (author's abstract)
Motivation: Labour market institutions are currently considered as the basic condition for high level of economic development. Decreasing income inequalities on contrary are among the main objectives of macroeconomic policy in the European Union (Europe 2020 Strategy), because unequal distribution may result in lower growth and development rates. The research done in the article is consisted with the institutional theory (D.C. North's interpretation).Aim: The main aim of the article is to analyse the relations between labour market institutions and income inequalities. There is also an attempt to answer the question if rigid labour market institutions reduce income inequality in European countries. This article provides a taxonomic analysis of labour market institutions in the EU countries. Data from Eurostat, World Bank, Fraser Institute, OECD are used. The article covers selected years: 2010 and 2016.Results: The countries were grouped according to the level of labour market institutions and in regard to income inequalities. The differences between the members of the groups were analysed between 2010 and 2016. Article ends with conclusions connected with rules shaping decisions on the labour market as well as relations between inequalities and institutions.
Motivation: Labour market institutions are currently considered as the basic condition for high level of economic development. Decreasing income inequalities on contrary are among the main objectives of macroeconomic policy in the European Union (Europe 2020 Strategy), because unequal distribution may result in lower growth and development rates. The research done in the article is consisted with the institutional theory (D.C. North's interpretation).Aim: The main aim of the article is to analyse the relations between labour market institutions and income inequalities. There is also an attempt to answer the question if rigid labour market institutions reduce income inequality in European countries. This article provides a taxonomic analysis of labour market institutions in the EU countries. Data from Eurostat, World Bank, Fraser Institute, OECD are used. The article covers selected years: 2010 and 2016.Results: The countries were grouped according to the level of labour market institutions and in regard to income inequalities. The differences between the members of the groups were analysed between 2010 and 2016. Article ends with conclusions connected with rules shaping decisions on the labour market as well as relations between inequalities and institutions.