IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/780.html
   My bibliography  Save this paper

Job Training, Remote Working, and Self-Employment: Displaced Workers Beyond Employment Hysteresis

Author

Listed:
  • Focacci, Chiara Natalie
  • Santarelli, Enrico

Abstract

The recent SARS-Cov-2 pandemic has contributed to several corporate crises. As a result, many Small- and Medium-Sized Enterprises (SMEs) in Italy have filed for bankruptcy in the first quarter of 2020. In addition to a gigantic macroeconomic effect, the lockdown has impacted individuals to a large ex- tent. In this article, we investigate the behavioural response of employees who are under a dual condition of stress; namely, the pandemic and the risk of job loss. The hypothesis of employment hysteresis is challenged by looking at the tendency of individuals who are employed in firms facing a crisis, or in diffi- culty, to participate in training measures for: a similar job, remote working, and self-employment. Findings from a seemingly unrelated regressions (SUR) model show a significant increase in the likelihood to participate in standard or high-commitment training measures for similar jobs and remote working for employees who: i) positively value their professional social capital, i.e. their membership in a trade union (+24.4 and +25.2 percentage points, respectively); ii) have some displaced colleagues (+29.6 and +40.7 percentage points, respec- tively). Finally, we find that employees with a lower educational background are less likely to consider the possibility of switching between occupations.

Suggested Citation

  • Focacci, Chiara Natalie & Santarelli, Enrico, 2021. "Job Training, Remote Working, and Self-Employment: Displaced Workers Beyond Employment Hysteresis," GLO Discussion Paper Series 780, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:780
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/229652/1/GLO-DP-0780.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003. "Unions, Work-Related Training, and Wages: Evidence for British Men," ILR Review, Cornell University, ILR School, vol. 57(1), pages 68-91, October.
    2. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, September.
    3. Deepti Goel & Kevin Lang, 2019. "Social Ties and the Job Search of Recent Immigrants," ILR Review, Cornell University, ILR School, vol. 72(2), pages 355-381, March.
    4. Enrico Santarelli & Martin Carree & Ingrid Verheul, 2009. "Unemployment and Firm Entry and Exit: An Update on a Controversial Relationship," Regional Studies, Taylor & Francis Journals, vol. 43(8), pages 1061-1073.
    5. Nicholas Bloom & James Liang & John Roberts & Zhichun Jenny Ying, 2015. "Does Working from Home Work? Evidence from a Chinese Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 165-218.
    6. Catherine Laffineur & Saulo Dubard Barbosa & Alain Fayolle & Emeran Nziali, 2017. "Active labor market programs’ effects on entrepreneurship and unemployment," Small Business Economics, Springer, vol. 49(4), pages 889-918, December.
    7. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    8. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    9. Jennifer Brown & David A. Matsa, 2016. "Boarding a Sinking Ship? An Investigation of Job Applications to Distressed Firms," Journal of Finance, American Finance Association, vol. 71(2), pages 507-550, April.
    10. Evan J. Douglas & Dean A. Shepherd, 2002. "Self-Employment as a Career Choice: Attitudes, Entrepreneurial Intentions, and Utility Maximization," Entrepreneurship Theory and Practice, , vol. 26(3), pages 81-90, April.
    11. José Ernesto Amorós & Luciano Ciravegna & Vesna Mandakovic & Pekka Stenholm, 2019. "Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts," Entrepreneurship Theory and Practice, , vol. 43(4), pages 725-750, July.
    12. Saygin, Perihan & Weber, Andrea & Weynandt, Michèle, 2014. "Coworkers, Networks, and Job Search Outcomes," IZA Discussion Papers 8174, Institute of Labor Economics (IZA).
    13. Johannes Spinnewijn, 2015. "Unemployed But Optimistic: Optimal Insurance Design With Biased Beliefs," Journal of the European Economic Association, European Economic Association, vol. 13(1), pages 130-167, February.
    14. Emanuela Carbonara & Enrico Santarelli & Martin Obschonka & Hien Thu Tran & Jeff Potter & Samuel D Gosling, 2018. "Agency culture, constitutional provisions and entrepreneurship: a cross-country analysis," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(3), pages 507-524.
    15. Mathias Drton, 2004. "Multimodality of the likelihood in the bivariate seemingly unrelated regressions model," Biometrika, Biometrika Trust, vol. 91(2), pages 383-392, June.
    16. C. Jeffrey Waddoups, 2014. "Union Membership and Job-Related Training: Incidence, Transferability, and Efficacy," British Journal of Industrial Relations, London School of Economics, vol. 52(4), pages 753-778, December.
    17. Michael Lechner & Stephan Wiehler, 2013. "Does the Order and Timing of Active Labour Market Programmes Matter?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(2), pages 180-212, April.
    18. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2020. "The advantages of formalizing networks: new evidence from Italian SMEs," Small Business Economics, Springer, vol. 54(4), pages 1183-1200, April.
    19. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, December.
    20. Georgios A. Panos & Ioannis Theodossiou, 2013. "Reciprocal Loyalty and Union Mediation," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 645-676, July.
    21. Douhan, Robin & van Praag, Mirjam, 2009. "Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework," Working Paper Series 805, Research Institute of Industrial Economics.
    22. Jason Heyes & Mark Stuart, 1998. "Bargaining for Skills: Trade Unions and Training at the Workplace," British Journal of Industrial Relations, London School of Economics, vol. 36(3), pages 459-467, September.
    23. Emanuela Carbonara & Hien Thu Tran & Enrico Santarelli, 2020. "Determinants of novice, portfolio, and serial entrepreneurship: an occupational choice approach," Small Business Economics, Springer, vol. 55(1), pages 123-151, June.
    24. Deepti Goel & Kevin Lang, 2009. "Social Ties and the Job Search of Recent Immigrants," NBER Working Papers 15186, National Bureau of Economic Research, Inc.
    25. Michiel Verver & Juliette Koning, 2018. "Toward a Kinship Perspective on Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 42(4), pages 631-666, July.
    26. Melvin Vooren & Carla Haelermans & Wim Groot & Henriëtte Maassen van den Brink, 2019. "The Effectiveness Of Active Labor Market Policies: A Meta‐Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 33(1), pages 125-149, February.
    27. repec:hal:spmain:info:hdl:2441/4n249fe9fu9n7qnntf71h06q6n is not listed on IDEAS
    28. Wiji Arulampalam & Alison L. Booth, 1998. "Training and Labour Market Flexibility: Is There a Trade-off?," British Journal of Industrial Relations, London School of Economics, vol. 36(4), pages 521-536, December.
    29. Uusitalo, Roope & Verho, Jouko, 2010. "The effect of unemployment benefits on re-employment rates: Evidence from the Finnish unemployment insurance reform," Labour Economics, Elsevier, vol. 17(4), pages 643-654, August.
    30. Elias, Peter, 1994. "Job-Related Training, Trade Union Membership, and Labour Mobility: A Longitudinal Study," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 563-578, October.
    31. Benoit Dostie & Mohsen Javdani, 2020. "Immigrants and Workplace Training: Evidence from Canadian Linked Employer–Employee Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 275-315, April.
    32. James Austin & Howard Stevenson & Jane Wei–Skillern, 2006. "Social and Commercial Entrepreneurship: Same, Different, or Both?," Entrepreneurship Theory and Practice, , vol. 30(1), pages 1-22, January.
    33. William J. Carrington & Bruce Fallick, 2017. "Why Do Earnings Fall with Job Displacement?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 688-722, October.
    34. Valerie Egdell  & Vanessa Beck, 2020. "A Capability Approach to Understand the Scarring Effects of Unemployment and Job Insecurity: Developing the Research Agenda," Work, Employment & Society, British Sociological Association, vol. 34(5), pages 937-948, October.
    35. Alex Bryson & Erling Barth & Harald Dale-Olsen, 2013. "The Effects of Organizational Change on Worker Well-Being and the Moderating Role of Trade Unions," ILR Review, Cornell University, ILR School, vol. 66(4), pages 989-1011, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Glitz, Albrecht, 2017. "Coworker networks in the labour market," Labour Economics, Elsevier, vol. 44(C), pages 218-230.
    2. Deepti Goel & Kevin Lang, 2019. "Social Ties and the Job Search of Recent Immigrants," ILR Review, Cornell University, ILR School, vol. 72(2), pages 355-381, March.
    3. Kim Hoque & Nicolas Bacon, 2008. "Trade Unions, Union Learning Representatives and Employer‐Provided Training in Britain," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 702-731, December.
    4. Wen Wang & Jason Heyes & Roger Seifert, 2023. "Trade union influence on innovation in the British private sector: Direct and indirect paths," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(2), pages 604-627, May.
    5. Muhammad Farooq Islam & Ozge Can, 2024. "Integrating digital and sustainable entrepreneurship through business models: a bibliometric analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-18, December.
    6. Engdahl, Mattias & Willis, Sébastien & Åslund, Olof, 2024. "Professional networks and the labour market assimilation of immigrants," Working Paper Series 2024:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Caliendo, Marco & Cobb-Clark, Deborah A. & Obst, Cosima & Uhlendorff, Arne, 2023. "Risk preferences and training investments," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 668-686.
    8. Olof Åslund & Per-Anders Edin & Peter Fredriksson & Hans Grönqvist, 2011. "Peers, Neighborhoods, and Immigrant Student Achievement: Evidence from a Placement Policy," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 67-95, April.
    9. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2018. "Employment Protection, Temporary Contracts and Firm-Provided Training: Evidence from Italy," IZA Discussion Papers 11339, Institute of Labor Economics (IZA).
    10. Ian M. Schmutte, 2015. "Job Referral Networks and the Determination of Earnings in Local Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 33(1), pages 1-32.
    11. Yann Algan & Clément Malgouyres & Thierry Mayer & Mathias Thoenig, 2022. "The Economic Incentives of Cultural Transmission: Spatial Evidence from Naming Patterns Across France," The Economic Journal, Royal Economic Society, vol. 132(642), pages 437-470.
    12. Tommaso Colussi, 2013. "Migrant Networks and Job Search Outcomes: Evidence from Displaced Workers," Working Papers 706, Queen Mary University of London, School of Economics and Finance.
    13. Emma Wallis & Mark Stuart & Ian Greenwood, 2005. "‘Learners of the workplace unite!’," Work, Employment & Society, British Sociological Association, vol. 19(2), pages 283-304, June.
    14. Isabelle Chort, 2017. "Migrant Network and Immigrants’ Occupational Mismatch," Journal of Development Studies, Taylor & Francis Journals, vol. 53(11), pages 1806-1821, November.
    15. Lorenzo Cappellari & Konstantinos Tatsiramos, 2010. "Friends’ Networks and Job Finding Rates," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro ieil0059, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    16. Sam Desiere & Bart Cockx, 2021. "How Effective Are Hiring Subsidies to Reduce Long-Term Unemployment among Prime-Aged Jobseekers? Evidence from Belgium," CESifo Working Paper Series 9325, CESifo.
    17. Semih Tumen, 2017. "Career choice and the strength of weak ties," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 17(3), pages 1-91–97.
    18. Patacchini, Eleonora & Zenou, Yves, 2012. "Ethnic networks and employment outcomes," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 938-949.
    19. Nicodemo, Catia & Nicolini, Rosella, 2012. "Random or Referral Hiring: When Social Connections Matter," IZA Discussion Papers 6312, Institute of Labor Economics (IZA).
    20. Nicholas Litsardopoulos & George Saridakis & Yannis Georgellis & Chris Hand, 2023. "Self-employment experience effects on well-being: A longitudinal study," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(2), pages 454-480, May.

    More about this item

    Keywords

    Corporate Crisis; Displaced Workers; Employment Hysteresis; Job Training; Self-Employment; SARS-Cov-2; Remote Working;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:780. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.