EconPapers    
Economics at your fingertips  
 

First Union Formation in Australia: Actual Constraints or Perceived Uncertainty?

Danilo Bolano () and Daniele Vignoli ()
Additional contact information
Danilo Bolano: University of Lausanne

No 2020_07, Econometrics Working Papers Archive from Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti"

Abstract: The present study adds to the growing literature on union formation in case of uncertainty by proposing an operational distinction between actual constraints and perceived uncertainty regarding the future. Using longitudinal data from 17 waves of the Household, Income and Labour Dynamics in Australia survey, we examine the effect of the type of contract, by empirically disentangling objective, actual constraints, their subjective perception, and perceived uncertainty about the future on the hazard of entry into the first union. Our results corroborate the notion that, alone, objective measures give only a partial and possibly inaccurate perspective: the specter of the future also matters. Relevant differences in selection into first union are observed according to the level of uncertainty faced by individuals. Moreover, our findings reveal a nonlinear relationship between uncertainty and family formation. Faced by either very low or very high uncertainty, individuals who are employed tend to invest their resources in family formation—a trend which may well be respectively encouraged or discouraged by the state of the labor market. With mid-levels of uncertainty, individuals may instead prefer to invest into the labor market and postpone union formation.

Keywords: Employment conditions; Perceived employment uncertainty; First unions; Australia. (search for similar items in EconPapers)
JEL-codes: J12 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2020-06
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://local.disia.unifi.it/wp_disia/2020/wp_disia_2020_07.pdf First version, 2020-06 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fir:econom:wp2020_07

Access Statistics for this paper

More papers in Econometrics Working Papers Archive from Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti" Viale G.B. Morgagni, 59 - I-50134 Firenze - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Fabrizio Cipollini ().

 
Page updated 2020-11-28
Handle: RePEc:fir:econom:wp2020_07