Economic Themes (2026) 64 (1) 6, 93-104

MACROECONOMIC EFFECTS OF LABOUR MARKET DEREGULATION AND INTERNATIONAL PRODUCTION LOCATION


Wataru Johdo

Abstract: This article examines how education, recent training, and job quality shape household income rank across 30 European countries by using microdata from the European Social Survey. The study estimates a survey-weighted ordered logistic regression model in which household income decile is explained by years of education, training participation, employment contract type, supervisory responsibility, weekly working hours, and employment relation. Robustness is assessed through proportional-odds checks, alternative income groupings, and trimming of extreme working-hour values. The findings show that more years of education, recent training, permanent contracts, and supervisory responsibility are consistently associated with higher household income deciles, while temporary or no-contract arrangements are linked with lower income ranks. Contracted working hours show a small negative association with household income rank. By jointly examining human capital and job-quality factors in a comparative European framework, the study provides evidence relevant for policies aimed at inequality reduction, better access to training, and more secure employment. The results highlight that continuous skill development and stable, higher-quality jobs remain central channels through which households improve their relative economic position.

Keywords:  household income; income decile; ordered logistic regression; human capital; job quality; training; labour market inequality; Europe

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