Korean income data obtained from Korea Labor Panel Survey shows excessive zeros, which may not be properly explained by the Tobit model. In this paper, we analyze the data using a zero-inflated Tobit model to incorporate excessive zeros. A zero-inflated Tobit model consists of two stages. In the first stage, individuals with 0 income are divided into two groups: genuine zero group and random zero group. Individuals in the genuine zero group did not participate labor market since they have no intention to do so. Individuals in the random zero group participated labor market but their incomes are very low and truncated at 0. In the second stage, the Tobit model is assumed to a subset of data combining random zeros and positive observations. Regression models are employed in both stages to obtain the effect of explanatory variables on the participation of labor market and the income amount. Markov chain Monte Carlo methods are applied for the Bayesian analysis of the data. The proposed zero-inflated Tobit model outperforms the Tobit model in model fit and prediction of zero frequency. The analysis results show strong evidence that the probability of participating in the labor market increases with age, decreases with education, and women tend to have stronger intentions on participating in the labor market than men. There also exists moderate evidence that the probability of participating in the labor market decreases with socio-economic status and reserved wage. However, the amount of monthly wage increases with age and education, and it is larger for married than unmarried and for men than women.
This article empirically explores the impact of minijobs in the wake of the Hartz reform in Germany on women's employment relationship. Theoretically it is of great significance to examine whether the minijobs play an active role as a bridge in leading the minijobbers to regular, socially secured jobs or not. Several interviews as well as secondary data I could get during my sabbatical in 2015 were used to test the theory. One of the main findings was the fact that the minijob labor market opened doors wide for women in Germany, particularly for career-interrupted women, students or pensioners. However, the minijob can easily become a trap of lowest income and poverty for women. Most women minjobbers cannot go over to regular, socially secured jobs. Especially in terms of collective industrial relations, it considerably damages the power of industrial unions and the legal binding force of collective agreement. In conclusion, this study makes it clear that the labor market segmentation theory rather than the transitional labor market theory is valid in accounting for the reality of minijob in Germany. In other words, the minijob in Germany has a Toijan Horse Effect. It also suggests, from a practical viewpoint, that German industrial unions or works councils organize the minijobbers and that the coverage of collective agreements be extended to the minijobbers. Consequently, the time-selective part-timer model put into practice in Korea in 2014 is not only invalid but also undesirable.
I develop a matching model in which risk-averse workers face borrowing constraints and make a labor force participation decision as well as a job search decision. A sharp distinction between unemployment and out of the labor force is made: those who look for work for a certain period but find no job are classified as the unemployed and those who do not look for work are classified as those out of the labor force. In the model, the job search decision consists of two steps. First, each individual who is not working obtains information about employment opportunities. Second, each individual who decides to search has to take costly actions to find a job. Since individuals differ with respect to asset holdings, they have different reservation job-finding probabilities at which an individual is indifferent between searching and not searching. Individuals, who have large asset holdings and thereby are less likely to participate in the labor market, have high reservation job-finding probability, and they are less likely to search if they have less quality of information. In other words, if individuals with large asset holdings search for job, they must have very high quality of information and face very high actual job-finding probability. On the other hand, individuals with small asset holdings have low reservation job-finding probability and they are likely to search for less quality of information. They face very low actual job-finding probability and seem to remain unemployed for a long time. Therefore, differences in the quality of information explain heterogeneous job search decisions among individuals as well as higher job finding probability for those who reenter the labor market than for those who remain in the labor force. The effect of the extended maximum duration of unemployment insurance benefits on the aggregate labor market and the labor market flows is investigated. The benchmark benefit duration is set to three months. As maximum benefit duration is extended up to six months, the employment-population ratio decreases while the unemployment rate increases because individuals who are eligible for benefits have strong incentives to remain unemployed and decide to search even if they obtain less quality of information, which leads to low job-finding probability and then high unemployment rate. Then, the vacancy-unemployment ratio decreases and, in turn, the job-finding probability for both the unemployed and those out of the labor force decrease. Finally, the outflow from nonparticipation decreases with benefit duration because the equilibrium job-finding probability decreases. As the job-finding probability decreases, those who are out of the labor force are less likely to search for the same quality of information. I also consider the matching model with two states of employment and unemployment. Compared to the results of the two-state model, the simulated effects of changes in benefit duration on the aggregate labor market and the labor market flows are quite large and significant.
Journal of the Korea Academia-Industrial cooperation Society
/
v.15
no.12
/
pp.7093-7100
/
2014
This study analyzed the factors related to labor market transition of job injured workers. The Workers' Compensation Insurance Panel data ver.1, which that was surveyed by the Korean Workers' Compensation & Welfare Service in 2013, was used. Four key findings were made: first, the economically inactive populations are 7.2% and unemployed is 22.3% of occupational accident workers who finished the treatment period; second, 31.5% of laborers who returned to a new workplace went into another type of occupation; third, the results showed that socio-demographic factors, such as gender, age and education years, injury-related factors, such as the treatment period and work limitation, and workplace factors, such as company size and employment status, were associated with the return to work; and fourth, a relatively higher proportion of people who has received occupational training could not return to work and the disability grade was not associated with the return to work. These results suggest that policy makers need to understand the characteristics of labor market transition of job injured workers and develop efficient intervention programs based on the transitional labor market.
The purposes of this study were to establish a conceptual model on the woman's labor force participation and mobility in the labor market and to analyze the correlation between them. Included in those models were two independent variable sets. The one was related to household's financial conditions and the other was associated to the woman's role such as marital status, the number of children and the existence of young children. KHPS's national data was used and the Binomial Probit Model and Bivariate Probit Model were employed to analyse the effects of independent variables and the correlations between two dependent variables. The results of this study were as follows. The rate of women's labor force participation and the percentage of mobility willingness were 15.4% and 22.0%. Among the variables which have affected women's labor force participation were total wage income, non-wage income, expenditure on children's education and the subject judgement of their financial status. The existence of children under the age of 6 and marital status had significant influences on women's mobility willingness. The correlation between women's labor force participation and mobility willingness was very significant statistically. These findings clarified the status of woman as a secondary worker and pointed that a woman's economic activity would be subject to the woman's condition rather than her human capital.
The self-employment can provide work time flexibility. Work time flexibility would be a critical factor for married females' labor supply considering allocation of their time to market work and household work. This study used the 1998 and 2000 Korea Labor and Income Panel Survey for the empirical analyses. Applying the bivariate probit model with partial observability, this study analyzed factors related to the choice of participation in labor market and choice of self-employment. Also, this study examined the effects of marriage and the presence of younger children on changes in decisions related to labor supply using the multinomial logit model: exit from the labor market, increasing and decreasing work hours. The presence of the younger children showed a significantly negative effect on the participation in labor market while positive, but insignificant, effect on self-employment. Compared with females working for others, self-employers without employees and unpaid family workers are less likely to exit labor market rather than increasing work hours. The self-employment would be a good alternative to evade females' career interruption and therefore to enhance the potential human resources.
India has recently experienced an acute crisis confronting the COVID-19 pandemic as confirmed cases exceeded 11.73 million in March 2021, which was the second worst scale only after the United States. The strict lockdown measures as well as the pandemic itself posed a serious threat of survival, in particular, to immigrant workers engaged in informal sectors, which triggered their reverse immigration. In case the COVID-19 pandemic continues in 2021, it is estimated that in the sector of tourism and service alone, more than 20 million jobs will disappear. The damage on industry is already being realized with the significant decrease of workforce. It is important to note, however, that jobless growth and labor polarization were observed even before the outbreak of COVID-19, and that the pandemic only served as one of the trigger catalysts that made those submerged problems burst out. In this study, we examine the structural problems in industry and labor market in India and consider the social context and efficacy of the "Make in India" or "Atmanirbhar Bhrat" policy. The latter initiative was presented in the trenches of the pandemic in 2020. While considering the complexity of problems, we would like to pursue a future-oriented approach and propose a direction in restructuring the labor market, attempted at reversing the critical conditions following the fourth industrial revolution and digitization into the shortcut to labor market restructuring.
The purpose of this study is to identify the possibility of unemployed married women's economic activity by analysing their willingness to work and possible influencial factors on it. This study estimates the effects of independent variables on the dependent available by using Binomial Probit Model. sample are 592 two-parent households. The results of this study are as follows ; The percentage of unemployed married women's willingness to enter into the labor market is 25.2%. Among the variables which have affected their willingness are family variables(family size, the number of children and the existence of children under the age of 6), personal variables(the age, education level and the past working experience) and financial variables(non-wage income, Engel's coefficient, expenditure o leisure activities and the subject judgement of their financial status). It is hard to accept those women's low willingness as is since the most crucial statistically was especially the children of 6 or less among the family variables. That is to say, more favorable conditions of the labor market and inexpensive day-care centres available would certainly encourage married women to be more willing to participate in economic activities as employees.
Taking 195 Korean businesses and sorting them out according to the unit types, this study looks into how flexibility strategy in labor market, which consists of numerical flexibility and functional flexibility, takes effect on the organization's outcome variable, which in turn consists of productivity, labor-management cooperation, and job security. In addition, the present study analyzes the role of labor union's moderating effect on the relationship among labor market flexibility, labor-management cooperation, and job security. It is found out as a result that numerical flexibility has no meaningful relation with productivity, labor-management cooperation, and job security, while functional flexibility has a considerably positive relation with them. This result confirms the importance of functional flexibility of business strategy in labor market. The West has continuously insisted the importance of functional flexibility, pointing out problems of numerical flexibility. On the other hand, considering that this study has confirmed functional flexibility's meaningful relation, while it has not found out numerical flexibility's negative relation, it is necessary to study further on the relationship between these two kinds of flexibility. The result of analysis on the role of union power's moderating effect confirms only the union power's interaction effect in the relation between numerical flexibility and labor-management cooperation. The possibility of union's opportunistic behavior can be detected in this result.
The objective of this study is to examine the trend of real earnings for TANF leavers. Using administrative data in Wisconsin, this study tracks the 1998 TANF leavers over 7 years. Based on the cyclicality of real wage hypothesis, this study finds: First, although the average real quarterly earnings of TANF leavers have remained stable since their exits, there are substantial labor mobility among TANF leavers. Second, the panel data analysis shows that the real earnings of TANF leavers are significantly associated with local labor market conditions, which supports the hypothesis on the cyclicality of real wages. This study has policy implications that labor market conditions matter for the economic well-being of TANF leavers and the labor demand policies are needed for the economic security of TANF leavers after the exit.
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