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The economic status of young people has declined significantly over the past two decades, despite a variety of programs designed to aid new workers in the transition from the classroom to the job market. This ongoing problem has proved difficult to explain. Drawing on comparative data from Canada, Germany, France, Sweden, and the United Kingdom, these papers go beyond examining only employment and wages and explore the effects of family background, education and training, social expectations, and crime on youth employment. This volume brings together key studies, providing detailed analyses of the difficult economic situation plaguing young workers. Why have demographic changes and additional schooling failed to resolve youth unemployment? How effective have those economic policies been which aimed to improve the labor skills and marketability of young people? And how have youths themselves responded to the deteriorating job market confronting them? These questions form the empirical and organizational bases upon which these studies are founded.
In France, low wages have historically inspired tremendous political controversy. The social and political issues at stake center on integrating the working class into society and maintaining the stability of the republican regime. A variety of federal policies—including high minimum wages and strong employee protection—serve to ensure that the low-wage workforce stays relatively small. Low-Wage Work in France examines both the benefits and drawbacks of this politically inspired system of worker protection. France's high minimum wage, which is indexed not only to inflation but also to the average increase in employee wages, plays a critical role in limiting the development of low-paid work. Social welfare benefits and a mandatory thirty-five hour work week also make life easier for low-wage workers. Strong employee protection is a central characteristic of the French model, but high levels of protection for employees may also be one of the causes of France's chronically high rate of unemployment. The threat of long-term unemployment may, in turn, contribute to a persistent sense of insecurity among French workers. Low-Wage Work in France provides a lucid analysis of how a highly regulated labor market shapes the experiences of workers—for better and for worse. A Volume in the Russell Sage Foundation Case Studies of Job Quality in Advanced Economies
We use longitudinal individual wage and employment data in France and the United States to investigate the effect of changes in the real minimum wage on an individual's employment status. We find that movements in both French and American real minimum wages are associated with mild employment effects in general and very strong effects on workers employed at the minimum wage. In the French case, a 1% increase in the real minimum wage decreases the future employment probability of a man (respectively, a woman) currently employed at the minimum wage by 1.3% (1.0%). In the United States, a decrease in the real minimum wage of 1% increases the probability that a man (woman) employed at the minimum wage came from unemployment in the previous year by 0.4% (1.6%).
This manual draws on the ILO's comprehensive database containing the principal legal provisions and minimum wage fixing mechanisms in 100 countries. The minimum wage has had a long and turbulent history, and this study sheds light on its intricacies by providing a thorough overview of the institutions and practices in different countries. It outlines the main topics for debate concerning the effects of minimum wages on major social and economic variables such as employment, wage inequality, and poverty. The book considers the various procedures countries use for implementation, including the criteria employed to fix the minimum wage, and how they are linked to specific country objectives. It then measures the efficiency of the minimum wage, and focuses on its impact on employment as a major political issue. For the benefit of non-specialists, the validity of econometric models and their results are examined.
Law and Employment analyzes the effects of regulation and deregulation on Latin American labor markets and presents empirically grounded studies of the costs of regulation. Numerous labor regulations that were introduced or reformed in Latin America in the past thirty years have had important economic consequences. Nobel Prize-winning economist James J. Heckman and Carmen Pagés document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They challenge the prevailing view that labor market regulations affect only the distribution of labor incomes and have little or no impact on efficiency or the performance of labor markets. Using new micro-evidence, this volume shows that labor regulations reduce labor market turnover rates and flexibility, promote inequality, and discriminate against marginal workers. Along with in-depth studies of Colombia, Peru, Brazil, Argentina, Chile, Uruguay, Jamaica, and Trinidad, Law and Employment provides comparative analysis of Latin American economies against a range of European countries and the United States. The book breaks new ground by quantifying not only the cost of regulation in Latin America, the Caribbean, and in the OECD, but also the broader impact of this regulation.
A comprehensive review of evidence on the effect of minimum wages on employment, skills, wage and income distributions, and longer-term labor market outcomes concludes that the minimum wage is not a good policy tool.
We use longitudinal individual wage and employment data for young people in France and the United States to investigate the effect of intertemporal changes in an individual's status vis- ...-vis the real minimum wage on employment transition rates. We" find that movements in both French and American real minimum wages are associated with relatively important employment effects in general, and very strong effects on workers employed at the minimum wage. In the French case, albeit imprecisely estimated, a 1% increase in the real minimum wage decreases the employment probability of a young man currently employed at the minimum wage by 2.5%. In the United States, a decrease in the real minimum of 1% increases the probability that a young man employed at the minimum wage came from nonemployment by 2.2%. These effects get worse with age in the United States, and are mitigated by eligibility for special employment promotion contracts in France
America confronts a jobs crisis that has two faces. The first is obvious when we read the newspapers or talk with our friends and neighbors: there are simply not enough jobs to go around. The second jobs crisis is more subtle but no less serious: far too many jobs fall below the standard that most Americans would consider decent work. A quarter of working adults are trapped in jobs that do not provide living wages, health insurance, or much hope of upward mobility. The problem spans all races and ethnic groups and includes both native-born Americans and immigrants. But Good Jobs America provides examples from industries ranging from food services and retail to manufacturing and hospitals to demonstrate that bad jobs can be made into good ones. Paul Osterman and Beth Shulman make a rigorous argument that by enacting policies to help employers improve job quality we can create better jobs, and futures, for all workers. Good Jobs America dispels several myths about low-wage work and job quality. The book demonstrates that mobility out of the low-wage market is a chimera—far too many adults remain trapped in poor-quality jobs. Osterman and Shulman show that while education and training are important, policies aimed at improving earnings equality are essential to lifting workers out of poverty. The book also demolishes the myth that such policies would slow economic growth. The experiences of countries such as France, Germany, and the Netherlands, show that it is possible to mandate higher job standards while remaining competitive in international markets. Good Jobs America shows that both government and the firms that hire low-wage workers have important roles to play in improving the quality of low-wage jobs. Enforcement agencies might bolster the effectiveness of existing regulations by exerting pressure on parent companies, enabling effects to trickle down to the subsidiaries and sub-contractors where low-wage jobs are located. States like New York have already demonstrated that involving community and advocacy groups—such as immigrant rights organizations, social services agencies, and unions—in the enforcement process helps decrease workplace violations. And since better jobs reduce turnover and improve performance, career ladder programs within firms help create positions employees can aspire to. But in order for ladder programs to work, firms must also provide higher rungs—the career advancement opportunities workers need to get ahead. Low-wage employment occupies a significant share of the American labor market, but most of these jobs offer little and lead nowhere. Good Jobs America reappraises what we know about job quality and low-wage employment and makes a powerful argument for our obligation to help the most vulnerable workers. A core principle of U.S. society is that good jobs be made accessible to all. This book proposes that such a goal is possible if we are committed to realizing it.