Employment and unemployment

17 November 2022
Academic article
ISEAK Working Paper

The impact of the increase in the minimum wage on inequality and employment

This report analyses, through the use of MCVL microdata, the relationship between the increase in the Minimum Interprofessional Wage (SMI) for 2019 and inequality, both in terms of wages and income, as well as its impact on employment. The results confirm that the groups most affected by this increase are women, young people and immigrants. A reduction in wage inequality and an increase in the income share of the lowest quintiles are observed, which would suggest that the increase in the minimum wage has fulfilled its objective of wage compression. On the other hand, this measure has a limited negative causal impact on employment, nil in the short term but growing slightly and gradually over time, mainly in terms of job losses and, to a lesser extent, an adjustment in the labour intensity of those affected.
15 November 2022
Reports
Informe ISEAK, 2022

The impact of the increase in the minimum wage on inequality and employment

This report analyses, through the use of MCVL microdata, the relationship between the increase in the Minimum Interprofessional Wage (SMI) for 2019 and inequality, both in terms of wages and income, as well as its impact on employment. The results confirm that the groups most affected by this increase are women, young people and immigrants. A reduction in wage inequality and an increase in the income share of the lowest quintiles are observed, which would suggest that the increase in the minimum wage has fulfilled its objective of wage compression. On the other hand, this measure has a limited negative causal impact on employment, nil in the short term but growing slightly and gradually over time, mainly in terms of job losses and, to a lesser extent, an adjustment in the labour intensity of those affected.
7 November 2022
Services

Diagnosis and profiling of vocational training in Basque Country

This project aims to analyze the impact of the ETHAZI vocational training model, specifically focused in the potential improvement of the access to employment for the […]
    3 November 2022
    Reports

    Competencias laborales de las personas entre 45 y 60 años en Euskadi

    This study analyses the position of people over 44 years of age in the Basque labour market in terms of the type of occupations performed and their skills. The results identify a particularly disadvantaged sub-group of people over 44 years of age: the chronically unemployed. This group was previously employed mainly in occupations that have lost weight in total employment in recent years, also known as declining occupations. Some of these occupations have been subject to automation processes, which are increasingly present in a labour market subject to growing digitalisation. The study identifies certain occupations from which a large proportion of chronically unemployed people originate, especially the over-44s. More manual occupations, such as "cleaners and assistants", are the source of a higher proportion of chronically unemployed people. Cognitive skills, which are more difficult to replace by automation processes, are also less present among the chronically unemployed. The results highlight the need to address the skills that the target group lacks in order to move towards jobs with positive future prospects at the lowest possible cost.
    3 November 2022
    Reports

    Review paper on state- of-the-art of living wage & re-/ up-skilling policies for NEETs

    Over the past few decades, a number of European labour markets have been under severe strain as a result of increasing labour precariousness, particularly amongst the youth, and the incidence of poverty. As a result of this, a number of policies, both at the European, national and regional levels, have been put in place with the aim of consolidating a stronger labour market and protecting the most vulnerable groups. The purpose of this review paper is twofold. First, it aims to provide a comprehensive review of the state-of-the-art knowledge regarding income schemes to alleviate poverty (mainly Minimum Income Schemes) in Italy, Ireland, Greece and Spain both at a national and a regional level. Second, the paper dives into policies addressed to the young NEETs which aim at closing the existing skill gap in the labour market of the four aforementioned countries. Within those countries, some particular less developed EEA peripherical regions are presented throughout the analysis. Those are categorised as either tourism-dependent economies or economies in energy transition as a result of the decarbonisation process of certain regions. The paper is organised as follows: in the following second section, an extensive review of income schemes is provided. In the third section, re-/up-skilling policies for the young NEETs in the previously referred regions is addressed, namely those aimed at promoting the social and labour inclusion of the young NEETs in the aforementioned European regions. For instance, actual training and re-skilling schemes or wage-subsidies are discussed. In both sections, the paper includes a review of the literature that focuses on evaluating the economic impact of the policies tackled in the study, when available. Lastly, the paper concludes and outlines some implications arising from the main findings.
    3 November 2022
    Reports

    Baseline Study on Impact of Youth Employment Policies

    The main objective of this baseline study, the first output from Cowork4YOUTH project, funded by the EEA and Norway Grants Fund for Youth Employment (cowork4youth.org) is to present descriptive evidence on the impact of youth employment policies across the four study countries (Ireland, Greece, Spain, and Italy) for the period 2008 to 2020. The focus of the project, and of the baseline study, is on: a) tourism-dependent, island or remote coastal regions, and b) areas facing energy transition, decarbonisation, or intense industrial decline. The purpose of this research is to provide a solid baseline on which subsequent outputs of Cowork4YOUTH can be built. In this study, i) employment rates, ii) unemployment rates, iii) long-term unemployment rates, iv) NEET rates, and v) inactivity rates are examined, both overall and by gender. We also calculated sectoral youth employment shares for economic sectors that correspond to the region types being focused on in the project. All indicators have been calculated using annual European Union Labour Force Survey (EU-LFS) microdata.