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Employment Research Institute Napier University. Job Search Success in Local Labour Markets Ronald W. McQuaid, Malcolm Greig and John Adams ESRC Seminar, Edinburgh, 6-8 January 2004. Employment Research Institute Napier University. Labour Market Policies.

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slide1

Employment Research Institute

Napier University

Job Search Success in Local Labour Markets

Ronald W. McQuaid, Malcolm Greig

and John Adams

ESRC Seminar, Edinburgh, 6-8 January 2004

slide2

Employment Research Institute

Napier University

Labour Market Policies

  • 1980s - 1990s progressive tightening of policy
  • ‘active’ and ‘deterrent’ policies
  • demand-side
  • supply-side emphasise
  • increasing targeting of certain groups
  • inappropriate targeting of active labour market policies can lead to inefficiencies of displacement, deadweight and substitution
slide3

Employment Research Institute

Napier University

New Deal Targets

  • young (aged 18-24)
  • long-term unemployed
  • lone parents
  • disabled people
  • the unemployed aged fifty plus
  • partners of unemployed people
  • disadvantaged communities (for example: Employment Action Zones, Priority Partnership Areas, Social Inclusion Partnerships, Single Regeneration Budget areas)
slide4

Employment Research Institute

Napier University

Study

  • demand-side (126 firms)
  • supply-side
  • 306 interviews, 169 follow through
  • 70 (41%) found a job and 99 (59%) did not
  • profiling the success of different groups in finding employment
  • explaining the success
slide5

Employment Research Institute

Napier University

Attributes

  • Socio-demographic variables
  • Human capital variables
  • Financial variables
  • Job search variables
  • Spatial variables
  • Residential variables
slide6

Employment Research Institute

Napier University

Model

  • factor analysis in order to develop a multi-dimensional profile of (un)successful job seekers
  • Factors were extracted using Principal Component Analysis with Varimax rotation
  • The factor scores (values with respect to each observation for each factor identified) were then analysed using binary logistic regression analysis taking employment success as the dependent variable, measured by the variable FOUNDAJOB
slide7

Factor1

Factor 2

Factor 3

Factor 4

Factor 5

MARRIED (+)

BGATE (+)

PTPT (+)

QUALITY (+)

MANUAL (+)

DEPS (+)

BUS79 (-)

PTTEMP (+)

DEPRIV (-)

EDQUAL

(-)

AGE (+)

ACCESS (+)

PRESSTIME (+)

WMTIME (+)

PROFQUAL (+)

PRESSTIME (-)

AOSTIME (+)

RESWAG (+)

EATIME (+)

TOTINC (+)

PRTRANS (+)

OWNEROCC (+)

LIVFAM (-)

Table I: Factor Components

slide8

Factor 6

Factor 7

Factor 8

Factor 9

CTENANT (+)

FEMALE

(-)

AGE

(+)

PTPT

(+)

OWNEROCC (-)

TTWTIME (+)

LENU

(+)

JCTIME

(+)

DEPRIV

(+)

LIVFAM

(-)

slide9

Table II: Estimated Regression Equation Coefficients for Employment Success

Table II: Estimated Regression Equation Coefficients for Employment Success

Factor

Coefficient estimate

F1 ‘family characteristics’

0.308*

F2 ‘accessible, non-metropolitan’

0.355**

F3 ‘flexible’

0.022

F4 ‘motivated’

2.009

F5 ‘unskilled’

0.247

F6 ‘socially excluded

0.029

F7 ‘male commuter’

0.242

F8 ‘older long-term unemployed’

-0.699***

F9 ‘willing to work part-time’

0.179

Constant

-0.491***

*** Significant at 1% level ** significant at 5% level *significant at 10% level

slide10

Employment Research Institute

Napier University

Conclusions

  • Factor 1 is significantly positively correlated with finding a job. This is interpreted as ‘family’.
  • Factor 2 is significantly positively associated with finding a job - ‘accessible, non-metropolitan’
  • most significant set of attributes (Factor 8) is interpreted as ‘older, long-term unemployed’ (and who unsurprisingly does not live with their parents), which is negatively associated with finding a job
  • focus of New Deal 50+ on the older, long-term unemployed is supported
  • Next phase
slide12

DEFINITION OF VARIABLES

Socio-demographic variables

FEMALE = 1 if the job seeker is female, 0 if male

MARRIED = 1 if the job seeker is married, 0 otherwise

DEPS = 1 if the job seeker has dependent children, 0 otherwise

AGE = age of job seeker in years

LONEPAR= 1 if the job seeker is a lone parent

Human capital variables

MANUAL = 1 if job seeker was formerly employed in a manual occupation,

0 otherwise

EDQUAL = level of academic qualifications from 0 (none) to 7 (higher degree)

PROFQUAL = level of professional/vocational qualifications from 0 (none) to 3 (advanced)

LENU = number of weeks that job seeker has been unemployed

QUALITY = self-perceived quality index of transferable skills

Financial variables

RESWAG = minimum weekly wage job seeker is willing to work for

TOTINC = monthly non-earned income

slide13

Job search variables

N_APPS = total number of applications made by job seeker in the 6 months prior to interview

JCTIME = average weekly time (hours) spent searching in Jobcentres

PRESSTIME= average weekly time (hours) spent searching in newspapers

WMTIME= average weekly time (hours) spent searching through word of mouth

AOSTIME= average weekly time (hours) spent on speculative job applications

EATIME= average weekly time (hours) spent searching through agencies

PTPT = prepared to accept part-time employment

PTTEMP = prepared to accept temporary employment

(time spent searching through employment agencies omitted due to low usage)

Spatial variables

BGATE= 1 if job seeker resident in Bathgate TTWA, 0 if Edinburgh TTWA

TTWTIME = job seeker’s maximum stated daily travel to work time (minutes)

BUS79 = number of buses between job seeker’s residence and CBD from 7am to 9am

ACCESS = accessibility index measuring travel time from job seeker’s residence to major centres of employment

PRTRANS = 1 if job seeker has access to private transport, 0 otherwise

Residential variables

DEPRIV = measure of local postcode area social deprivation 0 (low) to 3 (high)

CTENANT = 1 if job seeker is a council tenant, 0 otherwise*

OWNEROCC = 1 if job seeker is an owner occupier, 0 otherwise*

LIVFAM = 1 if job seeker lives with parents, 0 otherwise*

*(Base class is private tenant)