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This paper analyses the impact of unemployment insurance and severance pay on the duration of nonemployment and transitions from non-employment to formal salaried employment, informal salaried employment and self-employment. It makes use of panel data from the Pesquisa Mensal de Emgrego, a monthly survey for six large cities in Brazil, for the period 2002M3 to 2010M10. The impact of income support to job losers is identified by means of a difference-in-differences approach that exploits eligibility conditions for income support in combination with proportional hazard models that take account of the spell-based nature of the data. A key aspect of the analysis is that it attempts to assess the role of moral hazard while controlling for the role of liquidity effects. The aggregate results indicate that income support has an important impact on the duration of non-employment. This largely appears to be driven by liquidity effects, while the role of moral hazard is limited. By contrast, the analysis by destination state suggests that moral hazard effects dominate liquidity effects associated with income support. The apparent inconsistency between the two sets of results is due to the fact that the aggregate analysis only accounts for moral hazard effects that increase the duration of nonemployment, while the analysis by destination state captures both moral hazard effects in the form of reduced work incentives per se and those in the form of increased incentives to work informally during the period of benefit receipt. In practice, the latter effect may reflect the tendency for firms to employ benefit recipients informally until their benefits expire.

Employment --- Social Issues/Migration/Health --- Brazil

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This paper analyzes the effects of product market reforms in the short and medium term across 10 regulated industries and 18 advanced economies for the period 1998-2013 using internationally comparable firm-level data based on Orbis. It provides four key insights. First, product market reforms have positive effects on capital, output and employment and their effects increase over time. After two years, they raise capital by 4%, output by 3% and employment by 1.5%. Second, differences in production technology and the nature of product market regulations across sectors generate important differences in the mechanisms through which reforms operate. In network industries, reforms tend to benefit small firms, while the opposite is observed in retail trade. Product market reforms also promote firm entry, particularly those that reduce entry barriers. Third, credit constraints can play an important role in weakening the positive impact of product market reform on investment. Fourth, product market reforms also tend to have positive effects on firms in downstream sectors—both at home and abroad—that make intensive use of intermediate inputs from deregulated sectors.

Product management --- Industrial productivity --- Economic development --- Development, Economic --- Economic growth --- Growth, Economic --- Economic policy --- Economics --- Statics and dynamics (Social sciences) --- Development economics --- Resource curse --- Productivity, Industrial --- TFP (Total factor productivity) --- Total factor productivity --- Industrial efficiency --- Production (Economic theory) --- Brand management --- Management, Product --- Marketing --- Management --- Aggregate Human Capital --- Aggregate Labor Productivity --- Balance of trade --- Commodity exchanges --- Commodity markets --- Credit aggregates --- Credit --- Economic theory --- Empirical Studies of Trade --- Employment --- Exports and Imports --- Finance --- Finance: General --- Financial markets --- General Financial Markets: General (includes Measurement and Data) --- Income economics --- Intergenerational Income Distribution --- International economics --- International trade --- Labor --- Labour --- Monetary economics --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Money and Monetary Policy --- Money --- Trade in services --- Unemployment --- Wages --- United States

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This paper provides a comprehensive discussion of the labour market security dimension of the OECD’s job quality framework, thereby complementing the analysis in Chapter 3 of the OECD Employment Outlook 2014 and Chapter 5 of the OECD Employment Outlook 2015. It makes three main contributions. First, it provides an in-depth discussion of the definition and measurement of labour market security. and discusses in detail the various methodological issues surrounding its measurement. Second, it offers a comprehensive statistical portrait of labour market security across countries, socio-economic groups and over time. Third, it investigates the statistical relationship between labour market insecurity and subjective measures of well-being. Importantly, we find that the risk of unemployment has a detrimental effect on the well-being of employed workers, and that this reflects to an important extent the risk of staying unemployed for a prolonged period of time. Policymakers should therefore focus not only on reducing the level of unemployment, but also on speeding up unemployment turnover at a given level of unemployment. Unemployment insurance also mitigates the adverse effect of unemployment risk, and particularly that of long-term unemployment, on the well-being of the employed.

Employment --- Social Issues/Migration/Health

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Foreign direct investment (FDI) by OECD-based multinational enterprises (MNEs) in developing and emerging economies has increased dramatically over the past two decades. While generally perceived as beneficial for local development, it has also raised concerns about unfair competition and the protection of workers’ rights in host countries. This paper documents the recent increase in FDI and assesses its effects on wages and working conditions for workers of foreign affiliates of MNEs and those of their independent supplier firms. The evidence suggests that MNEs tend to provide better pay than their domestic counterparts, especially when they operate in developing and emerging economies. The positive impact on wages also appears to spread to the employees of domestic firms that serve as suppliers of MNEs or recruit managers with prior experience in foreign firms, but these spillover effects are small. MNEs also provide more training than domestic firms, but it is unclear whether this reflects a causal impact of foreign ownership.

Social Issues/Migration/Health

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In many countries, notably across Europe, collective bargaining coverage is enhanced by government-issued extensions that widen the reach of collective agreements beyond their signatory parties to all firms and workers in the same sector. This paper analyses the causal impact of such extensions on employment using a natural experiment in Portugal: the immediate suspension by the government that took office in 21 June 2011 of the (until then) nearly automatic extensions. The combination of this suspension and the time needed for processing the extension applications resulted in a sharp and unanticipated decline in the extension probability of agreements signed several month earlier around 1 March 2011. Our results, based on a regression discontinuity design and matched employer-employee-agreement panel data, suggest that extensions had a negative impact on employment growth. Moreover, the effects tend to be concentrated among non-affiliated firms. The lack of representativeness of employer associations is a potentially important factor behind the adverse effect of extensions. Another is the role of retro-activity in combination with the administrative delay in processing extensions. This is particularly relevant in the context of a recession.

Collective labor agreements --- Labor --- Aggregate Human Capital --- Aggregate Labor Productivity --- Collective Bargaining --- Dispute Resolution: Strikes, Arbitration, and Mediation --- Economic theory --- Employment protection --- Employment rate --- Employment --- Income economics --- Intergenerational Income Distribution --- Labor Contracts --- Labor economics --- Labor Economics: General --- Labor Force and Employment, Size, and Structure --- Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy --- Labour --- Macroeconomics --- Manpower policy --- Mobility, Unemployment, and Vacancies: General --- Unemployment --- Wages --- Wages, Compensation, and Labor Costs: General --- Portugal