Labour markets

China’s unemployment and labour shortage

Yang Liu, 19 July 2014

In China, both unemployment and a labour shortage have emerged as problems in recent years. This column explains their co-existence by a decrease in the matching efficiency in the labour market. One way to improve the matching efficiency, though difficult to implement in the short-run, is through the creation of more employment agencies. Companies can benefit if they invest more in recruiting activities.

Gender and the glass ceiling

Tony Atkinson, Alessandra Casarico, Sarah Voitchovsky, 10 July 2014

The glass ceiling is typically examined in terms of the distribution of earnings. This column discusses the glass ceiling in the gender distribution of total incomes, including self-employment and capital income. Evidence from Canada and the UK shows we are still far from equality. Though the proportion of women in the top 1% has been rising, the progress is slower, almost non-existent, at the very top of the distribution.

Gender diversity in management in Japan

Hiromi Ishizuka, 10 July 2014

Japan has one of the highest labour market gender gaps among the advanced economies. This column examines the current status of gender diversity in management in Japan, China, and South Korea. Despite some pronounced differences, economic gender gaps are large in all of the three countries. But overall, gender diversity in management in Japan is slowly beginning to emerge.

Culture of effort and US-EU labour market divergences

Alessandra Bonfiglioli, Gino Gancia, 8 July 2014

Differences in labour market and firm statistics between the US and Europe are easy to dismiss as cultural. This column applies an equilibrium model of worker screening and effort to cross-country data, showing that a large chunk of observed differences can be explained by the strategic interaction between firm and worker strategies. Evidence suggests that the US is in a high-screening, high-effort equilibrium, while southern Europe is in the complementary equilibrium. Perhaps culture is more economic than we might assume.

Trust-based working time spurs innovation

Holger Görg, Olivier N. Godart, Aoife Hanley, Christiane Krieger-Boden, 8 July 2014

Many firms are replacing traditional working hours with more flexible arrangements, reflecting new thinking on employee motivation. This column presents evidence from Germany that trust-based working time is associated with increased innovation. However, trust-based working hours also contribute to the blurring of workers’ professional and private lives, and may lead to excessive overtime. Careful design of trust-based working arrangements is required to reap the innovations gains while avoiding the health pitfalls.

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