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In: Socio-economic review, Band 17, Heft 2, S. 255-281
ISSN: 1475-147X
Abstract
This article investigates the role of labor market institutions for social inequalities in employment. To distinguish institutional impacts for men and women, age groups and educational levels the analysis draws on data from 21 countries using the European Union Labor Force Survey and the Current Population Survey 1992–2012. The analysis demonstrates that there is significant heterogeneity in the relationship between institutions and employment across social groups. In line with the literature on dualization, institutions that arguably protect labor market insiders, i.e. employment protection, unionization and unemployment benefits, are frequently associated with greater inequality between typically disadvantaged groups and their insider peers. By contrast, institutions that discriminate less between insiders and outsiders, i.e. active labor market policies, minimum income benefits and centralized wage bargaining at times boost social equality on the labor market. The insider/outsider argument provides a valuable heuristic for assessing heterogeneity in institutional impacts, yet in several instances the results deviate from the expectations.
The effect of generous welfare benefits on unemployment is highly contested. The dominant perspective contends that benefits provide disincentive to work, whereas others portray benefits as job-search subsidies that facilitate better job matches. Despite many studies of welfare benefits and unemployment, the literature has neglected how this relationship might vary across institutional contexts. This article investigates how unemployment benefits and minimum income benefits affect unemployment across levels of the institutional insider/outsider divide. I analyze the moderating role of the disparity in employment protection for holders of permanent and temporary contracts and of the configuration of wage bargaining. The analysis combines data from 20 European countries and the United States using the European Union Labour Force Survey and the Current Population Survey 1992–2009. I use a pseudo-panel approach, including fixed effects for sociodemographic groups within countries and interactions between benefits and institutions. The results indicate that unemployment benefits and minimum income benefits successfully subsidize job search and reduce unemployment in labor markets with a moderate institutional insider/outsider divide. However, when there is greater disparity in employment protection and when bargaining either combines low unionization with high centralization or high unionization with low centralization, generous benefits create a disincentive to work, plausibly because attractive job opportunities are scarce. ; Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG-geförderten) Allianz- bzw. Nationallizenz frei zugänglich / This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.
BASE
In: American sociological review, Band 82, Heft 5, S. 1037-1064
ISSN: 1939-8271
The effect of generous welfare benefits on unemployment is highly contested. The dominant perspective contends that benefits provide disincentive to work, whereas others portray benefits as job-search subsidies that facilitate better job matches. Despite many studies of welfare benefits and unemployment, the literature has neglected how this relationship might vary across institutional contexts. This article investigates how unemployment benefits and minimum income benefits affect unemployment across levels of the institutional insider/outsider divide. I analyze the moderating role of the disparity in employment protection for holders of permanent and temporary contracts and of the configuration of wage bargaining. The analysis combines data from 20 European countries and the United States using the European Union Labour Force Survey and the Current Population Survey 1992-2009. I use a pseudo-panel approach, including fixed effects for sociodemographic groups within countries and interactions between benefits and institutions. The results indicate that unemployment benefits and minimum income benefits successfully subsidize job search and reduce unemployment in labor markets with a moderate institutional insider/outsider divide. However, when there is greater disparity in employment protection and when bargaining either combines low unionization with high centralization or high unionization with low centralization, generous benefits create a disincentive to work, plausibly because attractive job opportunities are scarce.
In: Journal of European social policy, Band 24, Heft 1, S. 3-18
ISSN: 1461-7269
This article investigates differences in the likelihood of becoming an insider in Germany and the United Kingdom. Consistent with recent literature on dualization it contends that insider protection is more pronounced in the corporatist system and conservative welfare state of Germany. In conjunction with micro-level labour market sociology, the study argues that this affects the job matching process of the labour market. Using individual level panel data in event history models, it contrasts leaving non-employment for an insider position, that is, permanent full-time employment, with staying on the outside of the core labour market, that is, remaining without employment or taking up an atypical job. Results demonstrate that insider positions are harder to attain in the German labour market as a consequence of the institutional context that makes the said posts so appealing in the first place. At the same time, the German labour market regime strengthens the mechanisms of selection in terms of gender, age and education. The insider/outsider divide thus works in two ways. First, it increases inequality between insiders and outsiders in terms of economic and positional stability. Second, a stronger divide interacts with micro-level matching processes on the labour market. By reinforcing social differences in the chance to obtain an insider position, inequality is thus even further pronounced.
In: Journal of European social policy, Band 24, Heft 1, S. 3-18
ISSN: 0958-9287
In: Socio-economic review, Band 20, Heft 1, S. 141-168
ISSN: 1475-147X
Abstract
This comparative study analyzes the impact of the Great Recession on household non-employment across Europe since 2008. We use the EU-SILC (2007–2014) for a shift-share analysis that decomposes annual variations in household non-employment in 30 European countries. Investigating whether job loss is absorbed by or accumulated in households, we break down non-employment variations into changes in individual non-employment, household compositions and polarization. We find that household joblessness increased since 2008, especially in crisis-ridden countries. There is no evidence for the widespread absorption of individual non-employment in families or multi-person households. Instead, household dynamics and unequal distribution of non-employment lead to further risk accumulation within households during the crisis. Surprisingly, this pattern occurs in those crisis-ridden countries known for their traditional household structures and less accommodating welfare systems, which have relied thus far on families to absorb employment risks. The Great Recession has aggravated household disparities in joblessness in Europe.
In: Research & politics: R&P, Band 6, Heft 1, S. 205316801882395
ISSN: 2053-1680
Recent work in labor economics has shown that technological change has induced labor market polarization, an increase in demand for both high and low skill jobs, but declining demand for middle skill routine task jobs. We argue that labor market polarization should affect firms' participation in collective agreements, but only in countries where laws automatically extending collective agreements to nonparticipating firms are weak. We develop an argument in which labor market polarization increases the distance between different skill groups of workers in both preferences for unionization and leverage to realize those preferences. Because of this, an increase in labor market polarization should be associated with a decline in collective bargaining coverage. We test our hypothesis about collective agreement extension and collective bargaining coverage in a cross-national sample of 21 Organisation for Economic Co-operation and Development countries from 1970 to 2010 and our hypothesis about labor market polarization in German firm-level and industry-level data from 1993–2007. We find a negative relationship in the Organisation for Economic Co-operation and Development sample between technological change and collective bargaining coverage only in countries that make little or no use of extension procedures. We find that higher workforce skill polarization is associated with lower collective agreement participation in both German firm-level and industry-level samples.
SSRN
Working paper
In: The annals of the American Academy of Political and Social Science, Band 702, Heft 1, S. 37-54
ISSN: 1552-3349
Reform of the U.S. welfare system in 1996 spurred claims that cuts to welfare programs effectively incentivized single mothers to find employment. It is difficult to assess the veracity of those claims, however, absent evidence of how the relationship between welfare benefits and single mother employment generalizes across countries. This study combines data from the European Union Labour Force Survey and the U.S. Current Population Survey (1992-2015) into one of the largest samples of single mothers ever, testing the relationships between welfare generosity and single mothers' employment and work hours. We find no consistent evidence of a negative relationship between welfare generosity and single mother employment outcomes. Rather, we find tremendous cross-national heterogeneity, which does not clearly correspond to well-known institutional variations. Our findings demonstrate the limitations of single country studies and the pervasive, salient interactions between institutional contexts and social policies.
In: Proceedings of the National Academy of Sciences of the United States of America (PNAS), Band 119, Heft 44, S. 1-8
This study explores how researchers' analytical choices affect the reliability of scientific findings. Most discussions of reliability problems in science focus on systematic biases. We broaden the lens to emphasize the idiosyncrasy of conscious and unconscious decisions that researchers make during data analysis. We coordinated 161 researchers in 73 research teams and observed their research decisions as they used the same data to independently test the same prominent social science hypothesis: that greater immigration reduces support for social policies among the public. In this typical case of social science research, research teams reported both widely diverging numerical findings and substantive conclusions despite identical start conditions. Researchers' expertise, prior beliefs, and expectations barely predict the wide variation in research outcomes. More than 95% of the total variance in numerical results remains unexplained even after qualitative coding of all identifiable decisions in each team's workflow. This reveals a universe of uncertainty that remains hidden when considering a single study in isolation. The idiosyncratic nature of how researchers' results and conclusions varied is a previously underappreciated explanation for why many scientific hypotheses remain contested. These results call for greater epistemic humility and clarity in reporting scientific findings.