More alike than different: : the Spanish and Irish labour markets before and after the crisis

This paper analyses the labour markets of Spain and Ireland, which have experienced a severe downturn in the recent global crisis as reflected by the largest increases in their unemployment rates among other developed economies. Spain and Ireland might seem at first to feature very different labour markets, which go from very tight to very flexible labour conditions. Our analysis, however, goes beyond this simplistic argument and brings to light the strong commonalities that seem to have been hidden underground. We estimate a dynamic multi-equation structural model for each country, and then offer two sets of dynamic simulations which account for the swings of the unemployment rates before and after the 2007 crisis. Our results suggest looking beyond the degree of flexibility of both labour markets, just to focus instead on other variables usually neglected by more conventional approaches. In particular, such variables as the growth of capital stock, the growth of labour productivity, and demographics, succeed in explaining a great part of the changes in unemployment in both countries.Este documento analiza los mercados laborales de España e Irlanda, que experimentaron una severa desaceleración en la reciente crisis mundial, como lo reflejan los mayores incrementos en sus tasas de desempleo entre otras economías desarrolladas. Al principio, España e Irlanda parecen tener mercados laborales muy diferentes, que van desde condiciones de trabajo muy ajustadas hasta condiciones laborales muy flexibles. Este análisis, sin embargo, va más allá de este argumento simplista y saca a la luz las fuertes similitudes que parecen haberse ocultado bajo tierra. Se estima un modelo estructural dinámico de multi-ecuaciones para cada país, y luego se ofrecen dos conjuntos de simulaciones dinámicas que dan cuenta de las oscilaciones de las tasas de desempleo antes y después de la crisis de 2007. Estos resultados sugieren mirar más allá del grado de flexibilidad de ambos mercados laborales, solo para centrarse en otras variables generalmente descuidadas por los enfoques más convencionales. En particular, variables tales como el crecimiento del stock de capital, el crecimiento de la productividad laboral y la demografía, logran explicar una gran parte de los cambios en el desempleo en ambos países.Fil: Agnese Pablo .Fil: Salvador Pablo F.. CONICET (Consejo Nacional de Investigaciones Científicas y Técnicas) - Universidad Nacional de Cuyo

More Alike than Different: The Spanish and Irish Labour Markets Before and After the Crisis

This paper analyses the labour markets of Spain and Ireland, which have experienced a severe downturn in the recent global crisis as reflected by the largest increases in their unemployment rates among other developed economies. Spain and Ireland might seem at first to feature very different labour markets, which go from very tight to very flexible labour conditions. Our analysis, however, goes beyond this simplistic argument and brings to light the strong commonalities that seem to have been hidden underground. We estimate a dynamic multi-equation structural model for each country, and then offer two sets of dynamic simulations which account for the swings of the unemployment rates before and after the 2007 crisis. Our results suggest looking beyond the degree of flexibility of both labour markets, just to focus instead on other variables usually neglected by more conventional approaches. In particular, such variables as the growth of capital stock, the growth of labour productivity, and demographics, succeed in explaining a great part of the changes in unemployment in both countries.chain reaction theory, structural multi-equation models, unemployment dynamics, simulations, PIGS

The (Ir)relevance of the NRU for Policy Making: The Case of Denmark

We reconsider the central role of the natural rate of unemployment (NRU) in forming policy decisions. We show that the unemployment rate does not gravitate towards the NRU due to frictional growth, a phenomenon that encapsulates the interplay between lagged adjustment processes and growth in dynamic labour market systems. We choose Denmark as the focal point of our empirical analysis and find that the NRU explains only 33% of the unemployment variation, while frictional growth accounts for the remaining 67%. Therefore, our theoretical and empirical findings raise serious doubts as to whether the NRU should play a key instrumental role in policy making.Unemployment, Natural rate of unemployment, Labour market dynamics, Frictional growth, Chain reaction theory

Capital Accumulation and Unemployment: New Insights on the Nordic Experience

This paper takes a fresh look at the analysis of labour market dynamics and argues that capital accumulation plays a fundamental role in shaping unemployment movements. This role has generally been examined by considering indirect transmission channels of the capital stock effects, i.e. using variables like interest rates or investment ratios in the estimation of single-equation unemployment rate models. Here we advocate a different approach. We directly estimate the effects of capital stock in the labour market by applying the chain reaction theory of unemployment, and we find that capital stock is a major determinant of unemployment in the Nordic countries. In particular, the different unemployment experiences of these economies derive from the temporary (albeit prolonged) negative shocks to capital stock growth in Denmark and Sweden, and the permanent downturn of capital stock growth in Finland. We are thus able to explain why the crisis of the early 1990s had a more accute impact in Finland than in its twin economy, Sweden.Unemployment dynamics, Chain reaction theory, Capital accumulation, Nordic countries

Motores del empleo en los países nórdicos : el caso de Islandia y Noruega

Fil: Salvador, Pablo F.. Universidad Nacional de Cuyo. Facultad de Ciencias EconómicasFil: Lemos, Lorena. Universidad Nacional de Cuyo. Facultad de Ciencias Económica

La determinación de los salarios en el mercado de trabajo : el caso de Islandia y Noruega

En este trabajo examinamos el comportamiento del mercado de trabajo de Islandia y Noruega en las últimas décadas y en particular analizamos el proceso de formación salarial desde la óptica de la teoría de la reacción en cadena (TRC). Nuestras ecuaciones de salarios estimadas indican que en ambos países los salarios vienen determinados por los mismos factores: a) un componente que muestra la influencia que ejercen las decisiones del pasado en las decisiones presentes, b) la productividad del empleo, c) los subsidios de desempleo y d) la tasa de desempleo. Así, nuestros resultados refuerzan la hipótesis de la TRC sobre la importancia de utilizar conjuntamente variables estacionarias (instituciones del mercado de trabajo) y variables no estacionarias (variables con tendencia) para analizar el comportamiento del mercado de trabajo o de alguno de sus componentes, como en este caso el proceso de formación salarial.Fil: Salvador, Pablo F.. Consejo Nacional de Investigaciones Científicas y TécnicasFil: Salvi, Mauro. Universidad Nacional de Cuy

Análisis macroeconómico del mercado de trabajo

Fil: Salvador, Pablo F.. Universidad Nacional de Cuyo. Facultad de Ciencias EconómicasFil: Valladares, María Victoria. Universidad Nacional de Cuyo. Facultad de Ciencias Económica

Motores del empleo en los países Nórdicos: : el caso de Islandia y Noruega

Este trabajo se centra en el estudio del mercado de trabajo de dos países Nórdicos: Islandia y Noruega. En particular, se analiza la demanda de trabajo de estos dos países. Para ello, el enfoque se apoya en la teoría de la reacción en cadena que subraya la importancia de utilizar conjuntamente variables estacionarias (instituciones del mercado de trabajo) y variables no estacionarias (variables con tendencia) para analizar el comportamiento del mercado de trabajo o de alguno de sus componentes, como en este caso la demanda de empleo. Del resultado se desprende el rol preponderante que ejerce el stock de capital en el mercado de trabajo de estos dos países a través de la creación o destrucción de empleo.Fil: Salvador, Pablo F..Fil: Lemos, Lorena

Integrating social preferences in spatial analysis : the case of the Mendocinian piedmont natural areas

En esta investigación se estima el cambio en el bienestar social por un cambio de paisaje de los espacios naturales del piedemonte mendocino. Para ello, se utiliza el método de valoración contingente para inferir el valor social de un cambio de paisaje por la acción antrópica sobre tres cuencas hidrográficas ubicadas al oeste del Gran Mendoza. Los resultados del estudio muestran que un cambio de paisaje, simulado mediante una disminución de la cobertura vegetal, disminuye el bienestar de los ciudadanos del Gran Mendoza. En particular, el cambio de paisaje equivale en pérdida de bienestar individual, en promedio, a un gasto anual de 78 pesos en moneda de 2013, a partir de ahora y durante 10 años. Por consiguiente, la continuidad de un proceso de planificación territorial que no impida el deterioro del paisaje de los espacios naturales del piedemonte implica una pérdida de bienestar social. En este sentido, la valoración económica genera un nuevo espacio de participación ciudadana, al integrar las preferencias sociales al diseño de la gestión, y construir sobre esa base, en diálogo con el juicio experto, una gestión territorial eficiente y sustentable desde un punto de vista social.In this study is estimated the change in social welfare for a landscape change of the Mendocinian piedmont natural areas. It is used the contingent valuation method to elicit the social value for a landscape change of anthropogenic-pressures on three basins placed at the west of Gran Mendoza. The results show that a landscape change, simulated through plant cover reduction, reduces the social welfare of Gran Mendoza's citizens. In particular, this landscape change represents for each citizen a welfare lost equivalent, on average, to an annual expense of pesos 78 (in 2013 currency) in the coming 10 years. Consequently, a territorial programme omitting the landscape decline of the natural areas of the Mendocinian piedmont worsens social welfare. So, the economic valuation creates room for citizens' participation by integrating social preferences into programmes design, and allows with a team of experts to build an efficient and sustainable territorial planning, from a social perspective.Fil: Farreras, Verónica. CONICET (Consejo Nacional de Investigaciones Científicas y Técnicas) - Universidad Nacional de CuyoFil: Salvador, Pablo F.. Universidad Nacional de Cuyo. Facultad de Ciencias EconómicasFil: Vaccarino, Emilce. Universidad Nacional de Cuyo. Facultad de Ciencias Económica

Capturing the Benefits of Worker Specialization: Effects of Managerial and Organizational Task Experience

Learning by doing is a fundamental driver of productivity among knowledge workers. As workers accumulate experience working on certain types of tasks (i.e., they become specialized), they also develop proficiency in executing these tasks. However, previous research suggests that organizations may struggle to leverage the knowledge workers accrue through specialization because specialized workers tend to lose interest and reduce effort during task execution. This study investigates how organizations can improve specialized workers’ performance by mitigating the dysfunctional effects of specialization. In particular, we study how other sources of task experiences from the worker's immediate manager as well as the organization itself help manage the relationship between worker specialization and performance. We do so by analyzing a proprietary dataset that comprises of 39,162 software service tasks that 310 employees in a Fortune 100 organization executed under the supervision of 92 managers. Results suggest that the manager role experience (i.e., the manager's experience supervising workers) is instrumental in mitigating the potential negative effect of worker specialization on performance, measured as task execution time. Such influence, however, is contingent on cases in which organizational task experience (i.e., the organization's experience in executing tasks of the same substantive content as the focal task) is limited. Taken together, our research contributes to multiple streams of research and unearths important insights on how multiple sources of experience beyond the workers themselves can help capture the elusive benefits of worker specialization