Evaluating the internal dualism of the informal sector: evidence from the European Union

Purpose To transcend the current debates about whether participation in the informal sector is a result of informal workers “exclusion” or their voluntary “exit” from the formal sector, the aim of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and exclusion-driven “lower-tier” of informal workers. Methodology To do this, data from a 2013 Eurobarometer survey involving 27,563 face-to-face interviews across the European Union is reported. Findings The finding is that in the European Union, there is a dual informal labour market with those participating in the informal sector due to their exclusion from the formal sector being half the number of those doing so to voluntarily exit the formal sector. Using a logistic regression analysis, the exclusion-driven “lower tier” is identified as significantly more likely to be populated by the unemployed and those living in East-Central Europe and the exit-driven “upper tier” by those with few financial difficulties and living in Nordic nations. Research implications The results reveal the need not only to transcend either/or debates about whether participants in the informal sector are universally exclusion- or exit-driven, and to adopt a both/and approach that recognises a dual informal labour market composed of an exit-driven upper tier and exclusion-driven lower tier, but also for wider research on the relative sizes of these two tiers in individual countries and other global regions, along with which groups populate these tiers. Originality/value This is the first evaluation of the internal dualism of the informal sector in the European Union

Knowledge Services as a Basis of Enterprise Growth

During 20th century principles of the work division were used in the business activities of the companies. These principles took advantage of the knowledge of scientific management production. These principles were also transferred to the management sphere itself. The principles worked and supported the company economics in the mass manufacture period of standard products till the market was saturated. The companies grew to giant dimensions and integrated all what was needed for the manufacture. The activities divided by the work division were centralized in big hierarchical structures of the firms which realized the changes with difficulty. At the end of the 20th century the market was saturated and it was no more sufficient for the customers of what the mass manufacture was offering them. The customers asked the manufacturers for the products which they want to have themselves. They asked for the products and services according to their own wishes, namely: high-quality, cheap and at once if possible. Large manufacturers met with the requirements with difficulty and there were others entering into the market that were able to react (respond) to the customers´ standards. Big firms had to react to this situation. The embracive competition forces the manufactures to substantial costs reduction. Therefore more and more of what the manufactures are not able to produce, they buy from other manufactures all over the world. In the globalize world on one hand considerable quantity of opportunities comes up continually, on the other hand the useless activities cease continually as well. The enterprisers respond to these opportunities and many new companies come up and cease continually

Intangible assets and investments at the sector level : empirical evidence for Germany

This paper investigates the role intangible capital plays for economic growth in different sectors in Germany. It consists of two major parts. In the first part, we aim at measuring investment in intangibles at the sector level. We shed light on differences across sectors but also compare these figures with investment in physical capital and with investment in intangibles in the UK as European benchmark. The second part explores the role of intangible assets for stimulating growth at the sector level by performing growth accounting analyses. We find that German firms have boosted investments in intangible capital from 1995-2006 by 30%. Furthermore, results reveal differences in the investment patterns among the UK and Germany. In nearly all sectors investments in design and computerized information are larger in the UK. In contrast, German firms invest a higher proportion of gross output in R&D in all sectors, and advertising is also more common except for the sector trade & transport. Intangible assets have stimulated labour productivity growth in all sectors. The contribution varies between 0.17 (construction) and 0.59 (manufacturing) percentage points. In manufacturing, financial and business services innovative property capital is the most influential type of intangible capital for labour productivity, followed by economic competencies and computerized information. In all other sectors, economic competencies play the most prominent role for labour productivity growth

Human capital in the eco-innovative firms: a case study of eco-innovation projects

Purpose: The purpose of this paper is to explain the influence of human capital (HC) on the organizations in terms of eco-innovative entrepreneurship, and the existing relations of these resources with economic and financial resources as well as other capabilities of the firms. A secondary challenge in the research is to define and measure the availability of HC in firms for those eco-innovative processes. Design/methodology/approach: The targeted population for the study was eight eco-innovative companies in Spain. Within each company, a detailed CEO questionnaire was collected to measure HR information, certification or the existence of internal initiatives to promote eco/innovation, and secondary source records to measure economic and financial performance. This data collection strategy eliminated the possibility of percept-percept bias, since the data for each stage of the model were collected from different sources. The database has been analyzed through a qualitative comparative analysis (QCA). Findings: The main conclusion from the QCA analysis indicates that the role of the specialized HC involved in the R&D and innovation activities, the environmental management of firms and the resources (energy) management are relevant factors in the eco-innovative process and they have to be specifically managed for the development of eco-innovations. The qualitative analysis shows that firms that devoted specialized HC to the eco-innovation activities are companies at least ten years old, which have R&D and innovation departments as well as a specific department for the environmental management. They have been certified through some environmental certification standards, have human resources devoted to the product design, promote entrepreneurship for innovation among their own employees and also have higher than the sector average rates of leverage. Research limitations/implications: The main limitation of this paper is linked to the number of analyzed study cases, although all of them are sufficiently representative. Nevertheless, given that the empirical research addressing the interrelated factors of eco-innovation and HC is still not abundant, this study provides an interesting starting point for discussion and the improvement of the qualitative method applied in this paper. Moreover, further research is still needed to fully elucidate how the corporate entrepreneurship is promoted to respond to the eco-innovation strategy of firms, as well as to deeply explore the characteristics of the intellectual capital concerned to the eco-innovation processes. Originality/value: As a novel application, the influence of HC in organizations in terms of eco-innovative entrepreneurship has been analyzed through the measurement of the level of HC specifically devoted to eco-innovation in eight eco-innovative companies. One of the contributions of this study is to define the variables to measure the HC that is available for eco-innovation in an eco-innovative firm. The main conclusions are of interest to practitioners concerning the eco-innovation development in firms

Unemployment insurance reform – 1991–2006 : a new balance between rights and obligations in France, Germany, Portugal and Spain

The purpose of this article is twofold. First, focusing on unemployment insurance schemes, the article seeks to identify the development of social rights and obligations in four countries (France, Germany, Portugal and Spain), representative of the conservative regime, over the period 1991–2006. Second, the article aims to verify whether or not there was a common reform trajectory in time as well as in space, given the already known divergence over the appropriateness of classifying Mediterranean countries within the framework of a specific regime. Based on analysis of 25 legislative changes concerning entitlement and eligibility criteria, the study presents three major findings. First, the four insurance schemes reveal a new balance between (weaker) social rights and (stronger) obligations, which may indicate a trend toward a re-commodification of work. Second, Portugal adopted a specific trajectory while the Spanish reform process more closely resembled that carried out by France and Germany. Finally, two waves of reform may be identified: first, between 1991 and 1997 and justified by cost-containment concerns and, subsequently, from 2001 onwards, associated with a stronger recalibration of benefit rights

EVIDENCE ON GENDER WAGE DISCRIMINATION IN PORTUGAL: PARAMETRIC AND SEMI-PARAMETRIC APPROACHES

In this paper we consider several alternative approaches to analyze gender wage discrimination. Besides the traditional OLS estimator, we use two other approaches to control for sample selection bias problems: the parametric procedure suggested by Vella and Wooldridge, and the Li and Wooldridge semi-parametric estimator. We study the case of Portugal, employing data from the European Community Household Panel. The results reveal that the discrimination estimates are sensitive to the different econometric approaches. In fact, when sample selection bias is taken into account, the discrimination values are reduced and are typically not significant

Rising educational participation and the trend to later childbearing

How far can the shift to later childbearing in developed countries be accounted for by the growth in educational participation? A move to later childbearing has been a conspicuous feature of fertility trends in developed countries for many decades, and over that same period educational participation rates have risen substantially (OECD 2014, 2016a). The rising age at birth is often described as fertility postponement and is primarily due to a progressively later start to childbearing. Fewer women have been starting a family in their teens and early 20s and more have been delaying the start of parenthood to their late 20s and 30s (d'Addio and Mira d'Ercole 2005; OECD 2016b). The consequence is a decline in the first birth rates of childless women at younger ages, followed, in most cases, by a rise in parity-specific rates at older ages, resulting in a general shift up the age scale in the timetable of parenthood. In the West, the mean age at first birth began rising in the 1970s; in Eastern Europe, the trend began in the 1990s, following political and societal transformation (see Figures 1a and 1b). Later childbearing is emerging more recently as a feature of population trends in Southeast Asia and Latin America (Rosero-Bixby et al. 2009; Frejka et al. 2010)

Informal and Formal Care among Single-living Elderly in Europe

The aims of this study were (1) to analyse whether informal care, provided by children or grandchildren to their elderly parents, and formal care are substitutes or complements, and (2) whether this relationship differs across Europe. The analyses were based on the newly developed SHARE (Survey of Health, Age, and Retirement in Europe) database. We found (1) that informal- and formal home care are substitutes, while informal care is a complement to doctor- and hospital visits, and (2) that these relationships in some cases differ according to a north-south gradient

Productivity growth in the English National Health Service from 1998/1999 to 2013/2014

Productivity growth is a key measure against which National Health Service (NHS) achievements are judged. We measure NHS productivity growth as a set of paired year-on-year comparisons from 1998/1999–1999/2000 through 2012/2013– 2013/2014, which are converted into a chained index that summarises productivity growth over the entire period. Our measure is as comprehensive as data permit and accounts for the multitude of diverse outputs and inputs involved in the production process and for regular revisions to the data used to quantify outputs and inputs. Over the full-time period, NHS output increased by 88:96% and inputs by 81:58%, delivering overall total factor productivity growth of 4:07%. Productivity growth was negative during the first two terms of Blair’s government, with average yearly growth rate of 1:01% per annum (pa) during the first term (to 2000/2001) and 1:49% pa during the second term (2000/2001– 2004/2005). Productivity growth was positive under Blair’s third term (2004/2005–2007/2008) at 1:41% pa and under the Brown government (2007/2008–2010/2011), averaging 1:13% pa. Productivity growth remained positive under the Coalition (2010/2011–2013/2014), averaging 1:56% pa

Trade openness, real exchange rates and job reallocation

This paper investigates the impact of real exchange rate movements on job reallocation at the industry level. The analysis focuses on the manufacturing sector of Belgium, using data for 82 NACE 3-digit industries, over the time span 1996-2002. I find that real exchange rate changes do have a significant impact on job flows, and that this impact is magnified by increasing levels of trade exposure. In particular, a real appreciation is found to lower net employment growth through higher job destruction, while job creation is not significantly affected. These results are in line with previous empirical evidence on the United States, and differ from earlier findings for France and Germany, where the adjustment to real exchange rate shocks has been found to occur mainly through the job creation margin. I suggest that these differences may be explained by the fact that Belgium is a small open economy