Labor markets in an era of adjustment : an overview


Book Description

This overview of a symposium on labor markets and adjustment concludes that: (1) real wages are more flexible than generally supposed, (2) labor reallocations across sectors have been more or less in the desired direction, and (3) the role of labor unions, generally supposed to be an impediment to adjustment, is more subtle than generally supposed.







The Labor Market and Economic Adjustment


Book Description

This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.




From One Job to the Next


Book Description

This four-chapter book explains how the structure of job opportunities in the United States has changed over the past 20 years as the economy has changed from goods production to service employment; it links such changes to the issues of displacement policy and worker mobility. It is intended to contribute to the formation of policies and programs designed to help workers adjust to economic change. The first chapter outlines changes in the structure of job opportunities and assesses their effect on the post-layoff adjustment process of displaced workers and policies to facilitate it. Chapter 2 focuses on how the structure of job opportunities in the United States has changed in the recent past, explaining the issues and problems these changes may pose for successful worker adjustment. Analysis was made through data supplied by the March Work Experience Supplements to the Current Population Survey (CPS). Chapter 3 assesses the manner in which displaced workers have responded to changes in the structure of jobs and the implications that emerge for program policy. Data used were obtained from the January 1986 Dislocated Worker Supplement to the CPS. The final chapter draws together the conclusions from the analyses to identify the major challenges faced by programs and policies designed to facilitate worker adjustment to economic change. It discusses realistic policy goals and their implications for program strategy. Forty-two tables, extensive notes, and an index are provided. (KC)







Regional Labor Market Adjustments in the United States


Book Description

We examine patterns of regional adjustments to shocks in the US during the past four decades. We find that the response of interstate migration to relative labor market conditions has decreased, while the role of the unemployment rate as absorber of regional shocks has increased. However, the response of net migration to regional shocks is stronger during aggregate downturns and increased particularly during the Great Recession. We offer a potential explanation for the cyclical pattern of migration response based on the variation in consumption risk sharing.




Immigration, Trade, and the Labor Market


Book Description

Are immigrants squeezing Americans out of the work force? Or is competition wth foreign products imported by the United States an even greater danger to those employed in some industries? How do wages and unions fare in foreign-owned firms? And are the media's claims about the number of illegal immigrants misleading? Prompted by the growing internationalization of the U.S. labor market since the 1970s, contributors to Immigration, Trade, and the Labor Market provide an innovative and comprehensive analysis of the labor market impact of the international movements of people, goods, and capital. Their provocative findings are brought into perspective by studies of two other major immigrant-recipient countries, Canada and Australia. The differing experiences of each nation stress the degree to which labor market institutions and economic policies can condition the effect of immigration and trade on economic outcomes Contributors trace the flow of immigrants by comparing the labor market and migration behavior of individual immigrants, explore the effects of immigration on wages and employment by comparing the composition of the work force in local labor markets, and analyze the impact of trade on labor markets in different industries. A unique data set was developed especially for this study—ranging from an effort to link exports/imports with wages and employment in manufacturing industries, to a survey of illegal Mexican immigrants in the San Diego area—which will prove enormously valuable for future research.




Regional Labor Market Adjustments in the United States and Europe


Book Description

We examine patterns of regional adjustments to shocks in the US during the past 40 years. Using state-level data, we estimate the dynamic response of regional employment, unemployment, participation rates and net migration to state-relative labor demand shocks. We find that (i) the long-run effect of a state-specific shock on the state employment level has decreased over time, suggesting less overall net migration in response to a regional shock, (ii) the role of the participation rate as absorber of regional shocks has increased, (iii) the response of net migration to regional shocks is stronger, while that of relative unemployment is weaker during aggregate downturns, and (iv) the change in the response intensity of migration is related to the declining trend in regional dispersion of labor market conditions. Finally, using regional data for a set of 21 European countries, we show that while the short-term response of participation rates to labor demand shocks is typically larger in Europe than in the US, the immediate response of net migration in Europe has increased over time.







Wage and Employment Adjustment in Local Labor Markets


Book Description

Analyses the adjustment patterns of regional labour markets to changing demand between 1973 and 1987.