Journal for Labour Market Research

This paper presents an average treatment effect analysis of Spain's furlough program during the onset of the COVID-19 pandemic. Using 2020 labour force quarterly microdata, we construct a counterfactual made of comparable nonfurloughed individuals who lost their jobs and apply propensity score matching based on their pretreatment characteristics. Our findings show that the probability of being re-employed in the next quarter significantly increased for the treated (furlough granted group). These results appear robust across models, after testing a wide range of matching specifications that reveal a reemployment probability premium of near 30 percentage points in the group of workers who had been furloughed for a single quarter...

UNLABELLED: Latin America was one of the regions hardest hit by the COVID-19 pandemic. This paper analyses, from a dynamic and comparative perspective, labour transitions triggered by the pandemic in six Latin American countries: Argentina, Brazil, Costa Rica, Mexico, Paraguay, and Peru. Special attention is paid to transits around labour informality during this period. Unlike previous crises, the fall in informal occupations deepened the overall contraction in employment. This was explained by a significant increase in exit rates from these jobs and, to a lesser extent, by reductions in entry rates...

BACKGROUND: The influence of both individual factors and, in particular, the regional labour market on the return to work after medical rehabilitation is to be analyzed based on comprehensive administrative data from the German Pension Insurance and Employment Agencies. METHOD: For rehabilitation in 2016, pre- and post-rehabilitation employment was determined from German Pension Insurance data for 305,980 patients in 589 orthopaedic rehabilitation departments and 117,386 patients in 202 psychosomatic rehabilitation departments...

In response to COVID-19 most governments used some form of lockdown policy to manage the pandemic. This required making iterative policy decisions in a rapidly changing epidemiological environment resulting in varying levels of lockdown stringency over time. While studies estimating the labour market effects of lockdown policies exist in both developed and developing countries, there is limited evidence on the impact of variation in lockdown stringency, particularly in developing countries. Such variation may have large heterogenous effects both on aggregate and between worker groups...

UNLABELLED: Establishment surveys around the globe have measured the impact of the COVID-19 pandemic on establishments' conditions and business practices. At the same time, the consequences of the pandemic, such as closures, hygiene standards, or remote work arrangements, may have also altered patterns of survey participation and introduced nonresponse bias, threatening the quality of establishment survey data. To investigate these issues, this article examines fieldwork outcomes, nonresponse bias, and predictors of survey participation in the IAB-Job Vacancy Survey...

Employment relationships are embedded in a network of social norms that provide an implicit framework for desired behaviour, especially if contractual solutions are weak. The COVID-19 pandemic has brought about major changes that have led to situations, such as the scope of short-time work or home-based work in a firm. Against this backdrop, our study addresses three questions: first, are there social norms dealing with these changes; second, are there differences in attitudes between employees and supervisors (misalignment); and third, are there differences between respondents' average attitudes and the attitudes expected to exist in the population (pluralistic ignorance)...

Germany and the United States pursued different economic strategies to minimise the impact of the Coronavirus Crisis on the labour market. Germany focused on safeguarding existing jobs through the use of internal flexibility measures, especially short-time work (STW). The United States relied on a mix of external flexibility and income protection. On this basis, we use macroeconomic time series to examine the German strategy of securing employment through internal flexibility by contrasting it with the chosen strategy in the United States...

The COVID-19 pandemic has focused public attention on occupational groups that ensure the maintenance of critical infrastructure, provision of medical care and supply of essential goods. This paper examines the working conditions in critical jobs based on representative data from the German BAuA Working Time Survey 2019. Our analyses reveal that essential workers are more likely to perform unskilled or semiskilled activities and work in cleaning, transport and logistics, health care occupations as well as IT and natural science services...

This paper comparatively analyzes strategies of German Jobcenters to bring native and immigrant job seekers into employment. It focuses on clients who receive means-tested basic income for the unemployed, based on data from the Panel Study Labour Market and Social Security (PASS) from year 2015 to 2020. By way of logistic regression, the study identifies the impact of being an immigrant on the clients' probability of reporting different kinds of offers like job referrals or courses, controlling for a number of other influential factors...

Short-time work (STW) in Germany allows for a lot of flexibility in actual usage. Ex ante, firms notify the Employment Agency about the total number of employees eligible, and, up to the total granted, firms can flexibly choose how many employees actually use STW. In firm-level surveys, which provide timely information on STW in Germany, over-reporting of the number of employees on STW is prevalent. This study explores reasons for STW over-reporting based on a high-frequency and low-cost survey initiated during the Covid-19-pandemic (BeCovid) and a low-frequency and high-cost long-running survey (BP)...

In this article, our fundamental research question is to investigate the effect of the Coronavirus (named COVID-19) on the African American labor market. More specifically, we attempt to examine the potential economic impact of COVID-19 on the state of racial disparities among the African American labor market by examining two effects, namely, employment and income differentials, using national, state, and city level data (using data for all 77 neighborhood areas of the City of Chicago). Our central finding is that the labor market does not appear to treat black and white laborers as homogeneous, as attested by the finding that African American workers suffer from higher unemployment rates with higher volatility, lower median incomes, and they are more likely to work in the service sector, compared to their white counterparts, and we find this condition to be even larger in the City of Chicago...

Since January 2020, the COVID-19 crisis has affected everyday life around the world, and rigorous government lockdown restrictions have been implemented to prevent the further spread of the pandemic. The consequences of the corona crisis and the associated lockdown policies for public health, social life, and the economy are vast. In view of the rapidly changing situation during this crisis, policymakers require timely data and research results that allow for informed decisions. Addressing the requirement for adequate databases to assess people's  life and work situations during the pandemic, the Institute for Employment Research (IAB) developed the High-frequency Online Personal Panel (HOPP)...

In the paper, we investigate spatial relationship on the labor market of Poznań agglomeration (Poland) with unique data on job vacancies. We have developed spatial panel models to assess the search and matching process with a particular focus on spatial spillovers. In general, spatial models may provide different findings than regular panel models regarding returns to scale in matching technology. Moreover, we have identified global spillover effects as well as other factors that impact the job-worker matching...

Recent research suggests that new technologies are important drivers of empirically observed labour market polarisation. Many analyses in the field of economics are conducted to evaluate the changing share of employment in low-skill, medium-skill and high-skill occupations over time. This occupation-based approach, however, may neglect the relevance of specific skills and skill bundles, which potentially can be used to explain the observable patterns of labour market polarisation. This paper adds to the literature in two ways: First, we present the results of an analysis of data on job vacancies rather than the currently employed and, second, we derive occupation-defining skills using network analysis tools...

The Covid-19 crisis has forced great societal changes, including forcing many to work from home (WFH) in an effort to limit the spread of the disease. The ability to work from home has long been considered a perk, but we have few estimates of how many jobs are actually possible to be performed from home. This paper proposes a method to estimate the share of these jobs. For each occupation, we obtain a WFH friendly measure by asking respondents from Amazon Mechanical Turk (MTurk) to evaluate whether the corresponding tasks can be performed from home based on the descriptions from the International Standard Classification of Occupations 2008 (ISCO-08) standard...

We compare the wages of skilled workers in multinational enterprises (MNEs) versus domestic firms, the earnings of domestic firm workers with past, future and no MNE experience, and estimate how the presence of ex-MNE peers affects the wages of domestic firm employees. The analysis relies on monthly panel data covering half of the Hungarian population and their employers in 2003-2011. We identify the returns to MNE experience from changes of ownership, wages paid by new firms of different ownership, and the movement of workers between enterprises...

This paper exploits big data on online activity from the job exchange of the German Federal Employment Agency and its internal placement-software to generate measures for search activity of employers and job seekers and-as a novel feature-for placement activity of employment agencies. In addition, the average search perimeter in the job seekers' search profiles can be measured. The data are used to estimate the behaviour of the search and placement activities during the business and labour market cycle and their seasonal patterns...

In many advanced welfare states, welfare recipients often receive benefits for long periods. This persistence of welfare receipt can be caused by two distinct mechanisms: genuine or spurious state dependence. Knowledge of which of the two mechanisms drives the observed state dependence is important because the policy implications are different. Most of the empirical evidence on state dependence relies on survey data. However, survey data on welfare receipt are subject to substantial measurement error (i.e., misreporting of welfare benefit receipt), which may also bias state dependence estimates...

Previous comparative research has uncovered considerable cross-country differences in occupational gender segregation. There is, however, a lack of research on the role of educational systems in the creation of gender segregation and gendered school-to-work transitions. The aim of this study is to investigate the role of vocational education and the strength of the education-employment linkage in the transmission of horizontal gender segregation from education into the labour market. Transition system literature points to a stronger linkage between education and employment in countries where initial vocational education and training dominates the educational offers, and to a weaker linkage in countries with a stronger focus on general education...

We analyse the use of short-time work (STW) by Luxembourg firms during the years of economic and financial crisis (2008-2009) and the subsequent European sovereign debt crisis (2010-2013). The economic and financial crisis saw a surge in the number of firms using short-time work. We find that the likelihood that a firm applied for or used short-time work increases with demand volatility, the degree of firm-specific human capital and is higher for firms that cannot shift workers between establishments or that are more export oriented...