Job flows in Italian SMEs: a longitudinal analysis of growth, size and age

The paper proposes an empirical investigation of job flows for continuing manufacturing firms in Italy from 1996 to 2004 using high quality data on work forces and other characteristics of the firm. The magnitude of the job flows for small and medium-sized limited liability companies in Italy is lower than what observed in Anglo-Saxon countries, but it is still in line with evidence for firms in the Euro area. Second, the magnitude of job flows significantly shrunk in the aftermath of the economic downturn in 2001. Firms fared worse than in the late nineties and the labour market became less efficient in allocating job flows. Third, gross job creation and gross job destruction decrease as firm get larger, but when added to compute an indicator of net employment growth, size does not seem to affect firms’ expansion. On the contrary, age significantly hinges on the growth opportunities of small and medium-sized enterprises. The econometric analysis corroborates the major findings of our descriptive investigation referring to the role of size and age. In particular, it shows that classification methods used to define size classes strongly influence the estimated relationship between growth and size industrial regimes play a role in shaping job flows. Our result show that firms in supplier dominated industries fared significantly lower than enterprises in other sectors during the sample period

Effects of Compensation Strategy on Job Pay Decisions

Previous research has revealed wide variations in pay for the same job, even within a single locality. To date, however, the sources of such pay differentials are not well understood. The present research investigates how compensation managers from a wide variety of organizations combine infonnation about current job pay rates, market rates, and job evaluation points to arrive at new pay rates for jobs. In addition, it examines the role of two pay strategy variables (pay leadership position and external versus internal orientation) in job pay decisions, controlling for differences in organizational demographic characteristics (e.g., size, industry). Results suggest that pay strategies affect assigned pay levels, with higher pay being assigned by managers from fmns with market-leading strategies and internal pay orientations. In addition, pay strategies appear to influence the relative weights attached to market survey versus job evaluation infonnation in pay-setting for jobs. Specifically, although market survey information consistently explained more variance in assigned pay than did job evaluation, this effect was more pronounced among managers from finns having an external orientation. Organizational demographics also affected assigned pay levels, but to a lesser extent than pay strategies

A model of job and worker flows

We develop a model of gross job and worker flows and use it to study how the wages, permanent incomes, and employment status of individual workers evolve over time. Our model helps explain various features of labor markets, such as the amount of worker turnover in excess of job reallocation, the length of job tenures and unemployment duration, and the size and persistence of the changes in income that workers experience due to displacements or job-to-job transitions. We also examine the effects that labor market institutions and public policy have on the gross flows, as well as on the resulting wage distribution and employment in the equilibrium. From a theoretical standpoint, we propose a notion of competitive equilibrium for random matching environments, and study the extent to which it achieves an efficient allocation of resources.Labor market ; Labor turnover ; Labor mobility

Optimal Size and Intensity of Job Search Assistance Programs

This paper derives the welfare optimal size and intensity of job search assistance programs in a general equilibrium model where the labor market is affected by search frictions. Both instruments have a priori ambiguous fiscal implications: their direct employment stimulating effects broaden the base of the labor income tax and increase revenues, while also incurring direct costs. At optimal levels, the policy instruments trade off the positive effects on the participants against a marginal increase in taxes, which distorts employment decisions and potentially labor market tightness. We find that the higher unemployment insurance benefits, the lower is the optimal program intensity. Further, the introduction of a job search assistance program is more likely to raise welfare if it is highly effective at improving participants' job search skills, direct program costs are low and if the general level of taxation in the economy and thus the labor market participation tax are high.Job search assistance, optimal size, optimal intensity, unemployment insurance

A Model of Job and Worker Flows

We develop a model of gross job and worker flows and use it to study how the wages, permanent incomes and employment status of individual workers evolve over time and how they are affected by aggregate labor market conditions. Our model helps explain various other features of labor markets, such as the size and persistence of the changes in income that workers experience due to displacements or job-to-job transitions, the length of job tenures and unemployment duration, and the amount of worker turnover in excess of job reallocation. We also examine the effects that labor market institutions and public policy have on the gross flows, as well as on the resulting wage distribution, employment and aggregate output in the equilibrium. From a theoretical point of view, we study the extent to which the competitive equilibrium achieves an efficient allocation of resources.

Job flows in Italian SMEs: a longitudinal analysis of growth, size and age.

The paper proposes an empirical investigation of job flows for continuing manufacturing firms in Italy from 1996 to 2004 using high quality data on work forces and other characteristics of the firm. The magnitude of the job flows for small and medium-sized limited liability companies in Italy is lower than what observed in Anglo-Saxon countries, but it is still in line with evidence for firms in the Euro area. Second, the magnitude of job flows significantly shrunk in the aftermath of the economic downturn in 2001. Firms fared worse than in the late nineties and the labour market became less efficient in allocating job flows. Third, gross job creation and gross job destruction decrease as firm get larger, but when added to compute an indicator of net employment growth, size does not seem to affect firms' expansion. On the contrary, age significantly hinges on the growth opportunities of small and medium-sized enterprises. The econometric analysis corroborates the major findings of our descriptive investigation referring to the role of size and age. In particular, it shows that classification methods used to define size classes strongly influence the estimated relationship between growth and size industrial regimes play a role in shaping job flows. Our result show that firms in supplier dominated industries fared significantly lower than enterprises in other sectors during the sample period.job creation; job destruction; persistence of jobs; firm growth

The small firm anomaly: US and international evidence.

The results of a CAPM test are sensitive to aspects related to the weight one gives to small, low-visibility stocks when constructing the portfolios whose returns serve as left- and right-hand-side variables. It turns out to be the result of a marketwide factor rather than a stock characteristic. To fit the observed returns it suffices to redesign the size and book-to-market factor portfolios into two factor portfolios each, one for the smallest or highest book-to-market stocks relative to other stocks, and one for moderately small or high book-to-market stocks versus larger or growth companies. This alternative 6-factor model does a better job in pricing stocks, both in the US and internationally, than Carhart's 4-factor CAPM with factor portfolios designed following Fama and French (1992, 1993, 1995, 1996a, 1996b, 1998, 2000), Carhart (1997), Jegadeesh and Titman (1993) and Rouwenhorst (1999). The fact that we can resolve mispricing by adding factors rather than characteristics, rules out dataResearch; Impact; Determinants; Firms; Product; Market; Competition; Ownership; Performance; Characteristics; Belgian firms; Control; Companies; Firm performance; International; Portfolio; Variables; Size; Growth; Model; Job; Pricing; Factors; Rules; Data;

Precautionary Demand for Labor in Search Equilibrium

This paper studies firmsf job creation decisions in a labor market with search frictions. A simple labor market search model is developed in which a firm can search for a second employee while producing with a first worker. A firm expands employment even if the instantaneous payoff to a large firm is less than that of staying small--a firm has a precautionary motive to expand its size. In addition, this motive is enhanced by a greater market tightness. Because of this effect, firmsf decisions become interdependent--a firm creates a vacancy if it expects other firms to do the same, creating strategic complementarity among firms and thereby self-fulfilling multiple equilibria.labor demand, firm size distribution.

Essays on Labor Market Size and Job Match Quality

This dissertation is comprised of two essays that delve into the construction of a major-related labor market and its correlation with college graduates’ job match quality. Investigating the job match quality of college graduates for different majors in large cities is crucial, as it provides evidence on which majors tend to yield better job matches. This contributes to the study of the return on major while also shedding light on how city size impacts individuals’ ability to find jobs that align with their educational level and major, thereby enriching the study of the benefits of agglomeration. The first chapter examines whether college graduates work in occupations that match their educational level and the skills acquired through their majors, subsequently assessing the correlation between labor market size and job match outcomes. Although previous theoretical literature posits that larger cities lead to better job matching outcomes, empirical evidence regarding this relationship remains inconclusive. This paper proposes a novel measure of labor market size specific to each college major and investigates its impact on job match quality. The results suggest that the size of a major-specific labor market is a predictor of improved job match quality. However, the size of the overall labor market demonstrates an inconsistent effect on job match quality. Furthermore, the findings reveal that the impact of major-specific labor market size is more pronounced for male and younger workers. In chapter two, the focus shifts to the correlation between major-specific labor mar- kets and job match quality for married power couples. Power couples, defined as highly educated, dual-career spouses, have been documented to reside predominantly in large cities. However, literature providing direct evidence supporting the notion that college-educated women experience greater career success by living in larger urban areas remains scarce. Building upon the ideas and results from the first chapter, this section examines whether power couples’ job match quality benefits from residing in large urban areas, as defined by various criteria. The findings suggest that both husbands and wives in power couples are more likely to work in occupations that match their educational level and acquired abilities in larger major-related labor markets. Interestingly, the correlation between population and job match outcomes for power couples proves inconsistent across different models, which is in line with the individual-level results presented in the first chapter

An appetite for better jobs? An analysis of job quality among chefs in Australian restaurants

This thesis examines job quality among chefs in Australian restaurants. The restaurant industry has expanded significantly over the last two decades in response to growing consumer demand, yet it faces significant challenges related to the recruitment and retention of chefs. Existing research on the causes of these issues has been piecemeal. Consequently, this thesis draws on emerging job quality literature as its conceptual basis, which refers to the characteristics of a job that are conducive to worker wellbeing, commonly including work organisation, skill and training, progression opportunities, pay and benefits, job security, and working hours. This literature has raised the importance of workers’ life stage in shaping subjective assessments and the impact of market segment and organisational size on job quality. This research is based on a comparative case study of chefs’ job quality at six mid-upper market segment restaurants, involving semi-structured interviews with 36 chefs, managers, and industry experts. The findings revealed that, objectively, the quality of jobs for chefs are poor overall, with subjective assessment varying over the life course and impacting recruitment and retention. Some job quality dimensions varied across the case study sites, however there was no simple relationship between job quality overall and market segment or organisational size. These findings suggest that addressing job quality will improve recruitment and retention outcomes, as well as worker wellbeing, yet the relevant job quality dimensions differ according to workers’ life stage. Furthermore, life stage is a broader notion than has been traditionally conceived, encompassing age and career stage in addition to family stage. Finally, the factors that shape job quality are complex and not easily explained by variables such as market segment or organisational size, with interventions required at the workplace, regulatory, and policy level