Celebrating humanity's flourishing through the spread of capitalism and the rule of law
18 Jan 2016 Leave a comment
in job search and matching, labour economics, politics - New Zealand, politics - USA Tags: Denmark, employment law, employment protection, labour market regulation
[Tweet https://twitter.com/KiwiLiveNews/status/688503382181449728 ]
Denmark is all the go in the New Zealand Labour Party as a model for labour market flexibility despite the fact that it is much more heavily regulated than either New Zealand or the USA.
17 Jan 2016 Leave a comment
in economic history, labour economics, labour supply, politics - New Zealand, unemployment Tags: Denmark, employment law, labour market deregulation
The Labor Party thinks the Danish labour market is something of a model for New Zealand despite its inferior performance on unemployment.
Data extracted on 17 Jan 2016 03:44 UTC (GMT) from OECD.Stat.
17 Jan 2016 Leave a comment
in labour economics, labour supply, minimum wage, politics - New Zealand, unemployment Tags: Denmark, employment law, equilibrium unemployment rate, labour market deregulation
https://twitter.com/KiwiLiveNews/status/688503382181449728
The Labour Party wants the New Zealand labour market to be more like that in Denmark. The early 1990s recession New Zealand aside, New Zealand has always had a lower equilibrium unemployment rate than Denmark.
Data extracted on 17 Jan 2016 03:29 UTC (GMT) from OECD.Stat.
13 Nov 2015 Leave a comment
in economic history, Euro crisis, labour economics, labour supply, macroeconomics, politics - USA, public economics Tags: employment law, Eurosclerosis, France, Germany, growth of government, labour market regulation, size of government, taxation and labour supply
Source: Linda Regber.
10 Nov 2015 Leave a comment
in business cycles, economic history, economics of regulation, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics Tags: British economy, employment law, equilibrium unemployment rate, Eurosclerosis, France, Germany, Italy, labour market reforms, Margaret Thatcher, Thatchernomics, The British Disease
Unlike the USA, the German, Italian, British and French equilibrium unemployment rates all show fluctuations that reflect changes in their underlying economic circumstances and labour market reforms. The case of the British, the rise of the British disease and Thatchernomics. The case of German, its equilibrium unemployment rate rose after German unification and then fell after the labour market reforms of 2002 to 2005.
Source: OECD Economic Outlook November 2015 Data extracted on 10 Nov 2015 07:07 UTC (GMT) from OECD.Stat.
25 Sep 2015 1 Comment
in applied price theory, labour economics, labour supply, occupational choice, personnel economics, politics - New Zealand Tags: employment law, employment protection law, employment regulation, fixed costs of employment, Leftover Left, The fatal conceit, unintended consequences, zero hours contracts
This Labour Party link made it very easy for me to submit to the Select Committee of Parliament to oppose the Bill on regulating zero hours contracts. I oppose the Bill for the exact opposite reasons that the Labour Party opposes the Bill.
I encourage others to make a submission to Parliament as well opposing this draft amendment that will lower the wages of workers. My submission is as follows:
I do not support the proposed changes to the legislation governing zero hour contracts in the Employment Standards Legislation Bill. There should be no regulation of zero hours contracts.
Zero hours contracts is creative destruction at work in the labour market, sweeping away obsolete working time arrangements, mostly in the retail services sector. Plenty of new ways of working have emerged in recent years that include the proliferation of part-time work, temporary workers, leased workers, working from home, teleworking and sub-contracting. Employment laws were built on the now decaying assumption that workers had career-long, stable relationships with single employers.
Advance notice of work schedules is always known only to a minority of temporary and permanent employees in New Zealand, and there’s not much difference between that advance notice between temporary and permanent employees.
Critics overplay their hand if they suggest that somehow workers are very much disadvantaged and employers are holding all the cards. Job turnover and recruitment problems are a serious cost to a business. Workers will not sign zero hours contracts if they are not to their advantage.
Unless labour markets are highly uncompetitive with employers having massive power over employees, employers should have to pay a wage premium if zero-hour contracts are a hassle for workers.
The fixed costs of employment are such that you shouldn’t expect zero-hour contracts: you’ll typically do better with one 40-hour worker over two 20-hour workers because of these costs. Zero hour contracts would be most likely in jobs with low recruitment costs and where specialised training needs are low. Workers with low fixed costs of working will move into the zero-hour sector while those with higher fixed costs would prefer lower hourly rates but more guaranteed hours. Again, read lower here as meaning relative to what they could elsewhere earn.
Unless we have a good idea about why firms are moving to zero hours contracts, which we don’t, and why employees sign these contracts rather than work for other employers who offer more regular hours, meddling in these novel working time arrangements is risky.
Employers must pay a wage premium to induce in workers to sign zero hours contracts. This Bill seeks to deny workers the right to seek higher wages.
Feel free to use the above text as the basis for your own submission to Parliament.
17 Sep 2015 1 Comment
in applied price theory, economic history, economics of regulation, industrial organisation, job search and matching, labour economics, minimum wage, survivor principle, unions Tags: Australia, employment law, employment protection law, federalism, labour market deregulation, labour market regulation, union power, unions
17 Aug 2015 Leave a comment
in business cycles, currency unions, economic growth, economic history, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics, occupational choice, unemployment, unions, welfare reform Tags: employment law, equilibrium unemployment, Greece, Italy, labour market regulation, natural unemployment rate, Portugal, Spain, unemployment duration
The boom that preceded the bust in the Greek economy did nothing for the rate of long-term unemployment among Greeks. Long-term unemployment had been pretty stable prior to the economic boom after joining the euro currency union.
Source: OECD StatExtract.
Nothing much happened to long-term unemployment in Italy or Portugal in recent decades. Spanish long-term unemployment fell in line with the economic boom in Spain over the 1980s and 1990s up until the global financial crisis.
12 Aug 2015 Leave a comment
in business cycles, economic history, Euro crisis, job search and matching, labour economics, macroeconomics, unemployment Tags: employment law, equilibrium unemployment rate, Eurosclerosis, Italy, labour market regulation, natural unemployment rate, unemployment duration
Unemployment of more than a year was slowly tapering down in Italy before the global financial crisis, but ever so slowly.
Source: OECD StatExtract.
08 Aug 2015 Leave a comment
in Euro crisis, job search and matching, labour economics, macroeconomics, minimum wage, unemployment Tags: employment law, equilibrium unemployment rates, Eurosclerosis, expressive voting, labour market regulation, natural unemployment rate, offsetting behaviour, rational irrationality, unintended consequences
05 Aug 2015 Leave a comment
in economic history, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics, unemployment Tags: employment law, equilibrium unemployment rate, France, labour market regulation, natural unemployment rate, unemployment duration
Nothing really changes in France recently unemployment duration. Italian labour market is notorious for having very low inflows and outflows from employment and unemployment.
Source: OECD StatExtract.
30 Jul 2015 Leave a comment
in business cycles, currency unions, economic growth, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics, unemployment Tags: employment law, employment regulation, EU, Euro sclerosis, Euroland, Eurosclerosis, Japan, labour market regulation
29 Jul 2015 Leave a comment
in economic history, job search and matching, labour economics, labour supply, law and economics, minimum wage, politics - Australia, politics - New Zealand, politics - USA, unions Tags: Australia, British economy, employment law, employment law regulation
Major deregulations and re-regulations of the labour market in Australia and New Zealand did not move the employment protection inducts around that much in figure 1. All is been quiet on the labour market regulation front of the UK pretty much since the index was started.
Figure 1: OECD employment protection index (EPI), strictness of employment protection – individual and collective dismissals, USA, UK, Australia and New Zealand, 1990 – 2013
Source: OECD StatExtract.
The Work Choices legislation in Australia in 2006 was looked upon by the OECD as a somewhat minor deregulation not much more in scale than the deregulation introduced in 2008 with the election of the National Party led government.
Nobody told the unions that.
28 Jul 2015 1 Comment
in Euro crisis, job search and matching, labour economics, law and economics, macroeconomics Tags: British economy, employment law, employment law regulation, Eurosclerosis, France, Germany, Greece, Italy, Portugal, Spain
Much easier to fire someone in the USA or UK than on continental Europe. Greece and Spain aren’t that bad by continental European standards for employment law protections against dismissals of individuals.
Figure 1: Strictness of employment protection for individual dismissals, 2013
Source: OECD StatExtract.
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