J. R. Shackleton

Search methods and transitions into employment and inactivity

This paper sets out to evaluate the effect of search method employed (broadly defined here as formal or informal) on the probability that an individual will move out of unemployment into either employment or inactivity. We take advantage of the longitudinal element contained within the Labour Force Survey and link 794 individual records through five quarters. The sample contains all those who are unemployed in Spring 1996 and records their labour market status for the four quarters ending in Spring 1997. Given that this element of the LFS is only just beginning to be used, we attempt to evaluate its usefulness for the estimation of a discrete time‐competing risks model. We do find an effect of search method employed in the final specification and the sign on the coefficient rejects our belief that those using informal search methods may do so in order to signal their higher levels of productivity. Instead we are led to conclude that those using informal search methods may do so because of a lack of skills needed to use more formal channels.

Highly skilled labour mobility, skills shortages and immigration policy in Britain and Germany

Concern exists in many countries over problems of shortages of highly skilled personnel, particularly in science and technology. Britain and Germany, for example, are currently experiencing shortages of Information and Communications Technology skills which could limit productivity growth and innovation. Both countries have taken steps to liberalise their immigration policies as one means of alleviating these shortages. This has proved controversial, especially in view of the simultaneous rise in the numbers of asylum-seekers across the European Union which is placing strains on the ability of countries to assimilate immigrants. Some commentators have argued that using immigration to address skill shortages is at best only a short-term solution to shortages which should instead be addressed by an increased emphasis on training, education and possibly labour market reform.