Political uncertainty and business decision-making

Brad MacKay, University of Edinburgh

Brad MacKay, University of Edinburgh

Professor Brad MacKay, Professor in Strategic Management, Edinburgh Business School, discusses his new ESRC Senior Scotland Fellowship, which will see him examine the impact of constitutional and political uncertainty on business decision-making in Scotland.

Uncertainty is an inevitable consequence of the democratic process. This is true of the independence referendum, irrespective of the outcome. The Scottish government can’t eradicate the uncertainties associated with a Yes vote, since independence would be a process that emerged from negotiation with the rest of the UK and international institutions. A No vote, too, creates uncertainties over Scotland’s place in the Union, the possibility of further constitutional change for Scotland, or for the UK’s relationship with Europe.

This uncertainty colours the environment in which business decisions are made. For instance, the prospect of a ‘Yes’ vote carries uncertainties around changes in fiscal and monetary policies, regulation of industries, what currency might be adopted, participation in international economic and political agreements, and so on. Equally, a vote for the union could also bring with it other uncertainties including access to EU markets and regulatory authority if the UK’s future participation in the European Union is in doubt.

There is a pressing need to understand – through independent, objective and systematic research – the uncertainties that are of most concern to business leaders and how these affect business decisions, and the ways in which alternative constitutional futures that might flow from the referendum might affect the decisions business leaders make.

Such uncertainties have implications for businesses operating in Scotland, including whether to invest and expand capacity, withdraw from the market, locate operations elsewhere in the UK, Europe or the world, amongst others. Such implications may also vary depending on individual businesses, or between sectors and industries. There is a pressing need to understand – through independent, objective and systematic research – the uncertainties that are of most concern to business leaders and how these affect business decisions, and the ways in which alternative constitutional futures that might flow from the referendum might affect the decisions business leaders make.

My ESRC research fellowship will generate evidence that helps business decision-makers, policy-making officials and the public to understand, assess and predict the implications of the Scottish independence referendum for business decision-making. It involves around 60 interviews with senior business leaders in medium and large companies from across a range of strategically important sectors and industries operating in Scotland.

The project will explore business decision-making in conditions of constitutional and political uncertainty in Scotland and the United Kingdom. It will identify key types of uncertainty that are of concern to business leaders, and will develop a model of the types of possible business decisions against this backdrop of constitutional and political uncertainty. It will also model the likely impact of alternative constitutional scenarios on the decisions business leaders may make after the referendum.

The research will provide business decision-makers, policy-making officials and the public with decision-making tools that can improve and support decision-making in the midst of uncertain futures.

As with the other projects supported by the ESRC programme on the Future of the UK and Scotland, this fellowship aims to replace conjecture with evidence and academic insight. The research will provide business decision-makers, policy-making officials and the public with decision-making tools that can improve and support decision-making in the midst of uncertain futures. Such tools will also be useful for informing the wider public debate on the implications of a Scottish independence vote for business decision-making.

Professor Brad MacKay is ESRC Senior Scotland Fellow, and Head of the Strategy and International Business Group and Chair in Strategic Management, University of Edinburgh Business School.

Posted in Research News | Leave a comment

The Receding Tape

Neil Walker, University of Edinburgh

Neil Walker, University of Edinburgh

In a post published at the Scottish Constitutional Futures Forum, Neil Walker reflects on the implications of the referendum, questioning whether it will provide a decisive conclusion.

And so the countdown begins. But the countdown to what? Twelve months from now we should know the result of the referendum, but just how significant a marker will that be on Scotland’s constitutional journey?

One popular view – for many less a reasoned view than a deep-rooted assumption – maintains that the referendum will be decisive and conclusive of Scotland’s future constitutional shape and status. The contemporary history of the Scottish national debate began with Winnie Ewing’s by-election success in Hamilton in 1967, continued through the abortive devolution referendum of 1979, and reached a new pitch with the successful plebiscite of 1998 and the election of the new Scottish Parliament in 1999. According to the conventional narrative, this long Scottish constitutional ‘moment’ is now drawing to an end, the independence referendum scheduled for September 2014 its final act. And despite some early mutterings from the side-lines about the inclusion of a third ‘devo-max’ option on the ballot paper, that final act  will consist of a straight choice between ‘yes’ or ‘no’, ‘out’ or ‘in’.

Independence will cease to be an abstract and free-floating idea. It will instead begin to look like a substantive blueprint. And this will serve to reinforce a sense of the debate as a binary choice

But why should we conclude that the availability of a  straight choice to stay or leave – the first such choice offered the Scottish people in over three centuries of Union, will settle matters once and for all?

Read the rest of Neil Walker’s analysis at the Scottish Constitutional Futures Forum.

Neil Walker is Regius Professor of Public Law and the Law of Nations at the University of Edinburgh.

Posted in Constitution | 1 Comment

UK-Irish Bond May Stretch to Scots

Dr. Nicola McEwen, Academy of Government

Dr. Nicola McEwen, ESRC Senior Fellow

In a piece originally published in the Scotsman, Nicola McEwen analyses the potential for partnership should the referendum on independence succeed. She concludes that Britain’s close ties to Eire indicate a willingness to deal with independent neighbours.

The First Minister and other leading figures in the Yes campaign have been keen to emphasise the continued associations and partnerships in which an independent Scotland would share. While independence might mean the dissolution of the Anglo-Scottish parliamentary union, many other unions – including a currency union, a social union and the union of crowns – would be maintained and some services shared within a renewed partnership of the British Isles.

These claims have been challenged by the Better Together campaign and the UK government. The Secretary of State for Scotland, Michael Moore, recently accused the SNP of “creative thinking” about what independence really means, and argued that instead of continuity it would mean “turning our backs on our shared interests”. Other UK ministers, from the chancellor to the foreign secretary, have likewise contested the assumption that continued associations would be in the interests of the rest of the UK. Since any offer of partnership needs a willing partner, this seeming reluctance can be difficult to counter.

All of which begs the question – if it is in the interests of the UK government to collaborate so extensively with independent Ireland, why would it not also be in its interests to co-operate extensively with an independent Scotland? 

This Wednesday – the same day that we begin the year-long countdown to the independence referendum – the most senior civil servants in the UK government will engage in high-level deliberations to cement another partnership on these islands. The relationship between the UK and Ireland has undergone a step-change in the last few years. Building on their joint work to promote the Northern Ireland peace process, the two governments now engage extensively across many areas of government policy.

This enhanced British-Irish relationship was kick-started by the Queen’s visit to Dublin in 2011 – the first visit to the Irish Republic by a British monarch since independence. Filled with symbolically significant acts including the laying of a wreath at the Garden of Remembrance, this visit signalled a normalisation of British-Irish relations, generating and reflecting feelings of goodwill between bothcountries. The relationship was reinforced by the joint statement issued by Prime Minister David Cameron and Taoiseach Enda Kenny in March 2012. Their statement underlined the shared history, culture, business and family ties, shared interests and co-operation in trade, and a close alliance within the European Union. It also confirmed their commitment to “a decade of renewed and strengthened co-operation between our two countries”.

That statement initiated intensive, centrally co-ordinated, collaboration between officials across both governments. It led also to the joint commissioning of a study into the depth of economic relations between Britain and Ireland and of the opportunities for closer integration. This study, by PA Consulting, reported in July, making recommendations for enhanced bilateral co-operation which were immediately endorsed by the PM and the Taoiseach. The two governments had already agreed a work programme to advance co-operation in a wide range of areas including energy, financial services, infrastructure, transport, 
R & D, agriculture and food, and EU relations.

Maintaining peace in Northern Ireland remains a concern, but the relative stability of politics in the North means it no longer tops the intergovernmental agenda. So, when the British permanent secretaries and Irish secretaries general group – the civil service of the respective governments – have their annual meeting this week, it will give the go-ahead to some of the many joint projects that British and Irish officials have been developing since 2011, and will look to the future for opportunities to solidify the new British-Irish partnership.

All independent states work with others to some degree, but the extent of intergovernmental co-operation between the UK and Ireland is significantly greater than the engagement either government has with any other country. What’s more, in spite of the vast differences in population, resources and political standing, the relationship appears to be conducted among equals. The UK has not used its relative strength to impose its will. An aura of mutual respect prevails. Of course, the issue of where power lies would only really be tested once a dispute emerged – something which has so far been avoided in the will to search for, and find, areas of agreement.

There is a sense, too, that such co-operation is in the mutual interests of both countries. For the UK, Ireland represents its closest ally in the European Union and the two governments share many policy positions in EU negotiations. They also have shared economic interests resulting from a strong trading relationship and inter-linked economies, businesses and workforce. In energy, one of the areas where co-operation has been most extensive, both also have what the other needs: Ireland has the geography, the climate and the will to generate vast amounts of renewable energy; the UK apparently has the will to pay for it, reflecting its need to feed energy demand and meet EU obligations.

All of which begs the question – if it is in the interests of the UK government to collaborate so extensively with independent Ireland, why would it not also be in its interests to co-operate extensively with an independent Scotland? Scotland and the rest of the UK would almost certainly maintain a strong trading relationship. The UK government’s own analysis indicates that while the rest of the UK is Scotland’s biggest trading partner, Scotland is the second biggest market (behind the United States) for goods and services produced in the rest of the UK.

Citizens would continue to travel and work across the internal borders of the British Isles. Firms and financiers would continue to invest. It is impossible from this vantage point to determine whether the fact of independence would generate new barriers to such activities, but it is reasonable to conclude that the rest of the UK would have at least as much interest in co-operating with Scotland as it does with Ireland.

There are caveats, however. British-Irish co-operation today emerged from the particular context of the Northern Ireland peace process, and it is buoyed by a personal rapport between the Prime Minister and the Taoiseach. If the referendum results in a Yes vote, the conditions under which Scottish independence was secured and negotiated, and the degree of trust or mistrust those negotiations generated, would affect the nature of the intergovernmental relationship to follow.

Second, although the leaders’ Joint Statement initiated an unprecedented degree of British-Irish co-operation, it is arguably less deep than the relationship envisioned by the Scottish government, especially around currency issues.

Nonetheless, to many observers, it may seem contradictory for the UK government to champion broader and deeper collaboration with Ireland while simultaneously appearing reluctant to entertain the continued associations being proffered by advocates of Scottish independence.

Dr Nicola McEwen is an ESRC senior Scotland fellow and director of public policy at the academy of government, University of Edinburgh

Posted in Europe and External Relations | 1 Comment

Winter School on Federalism and Governance

Winter School on Federalism and Governance

Winter School on Federalism and Governance

The Winter School is a cross-border postgraduate programme located in the heart of the Alps under the auspices of the Secretary General of the Council of Europe. The 2014 edition will focus on “Federalism and Multilevel Constitutionalism”.

Dates and venues: 3-14 February 2014

The first week (3-8 February) takes place at the Faculty of Law and School of Political Science and Sociology, Leopold-Franzens-Universität Innsbruck, Austria; the second week (10-15 February) takes place at the Institute for Studies on Federalism and Regionalism, European Academy Bolzano/Bozen (EURAC), Italy.

Deadline for applications (accepted online only): 25 October 2013

The Winter School on Federalism and Governance is designed for participants from all nationalities who wish to deepen their knowledge on federalism and multilevel constitutionalism via an interdisciplinary and comparative approach. We welcome applications from doctoral, postgraduate and undergraduate students, researchers, officials, employees of national/international organizations or NGOs, as well as interested citizens.

The Winter School on Federalism and Governance 2014 explores how federalism contributes to the understanding of multilevel, integrated decision-making. It is a unique opportunity to be trained on theoretical and practical aspects of federalism and multilevel constitutionalism.

The Winter School offers a broad range of lessons on federalism and governance providing in-depth analyses and practical knowledge. Lectures focus mainly on Europe but include also Asia, Africa and the Americas. During the 10-day-full time programme several case-studies will be presented by experts and key actors who manage these issues on a daily basis.

To apply and for further information, please visit: www.eurac.edu/winterschool

Posted in Uncategorized | Leave a comment

Towards a Fair and Democratic Process? Regulating the Referendum on Scottish Independence

Professor Stephen Tierney

Professor Stephen Tierney

In a post originally published at the UK Constitutional Law Group’s blog, Professor Stephen Tierney discusses the necessary components of a fair and democratic referendum. Stephen notes the focus on the outcome rather than the legitimacy of the process.

The referendum on independence is still a year away and already attention is focused on major substantive issues such as economic relations between an independent Scotland and the United Kingdom, and the ease or difficulty with which an independent Scotland would achieve membership of the European Union. What is often overlooked is that the credibility of the outcome of the vote on 18 September 2014, whatever that might be, will depend greatly on the legitimacy of the referendum process itself.

Already the procedural rules for the referendum have been taking shape, with one bill now enacted and the other before the Scottish Parliament. The franchise rules for the referendum are set out in the Scottish Independence Referendum (Franchise) Act (‘the Franchise Act’), introduced into the Scottish Parliament on 11 March, and enacted on 7 August. This Bill required to pass through the Scottish Parliament quickly to facilitate the registration of voters, particularly new voters since the franchise for the referendum is extended to 16 and 17 year olds. The Scottish Independence Referendum Bill (‘the Referendum Bill’) was introduced into the Parliament on 21 March 2013 and is expected to be passed in November.

The legislation was preceded by the Edinburgh Agreement signed by the United Kingdom and Scottish Governments on 15 October 2012. This, and the associated ‘memorandum of agreement’, provided that the referendum should have a clear legal base; be legislated for by the Scottish Parliament; be conducted so as to command the confidence of parliaments, governments and people; and deliver a fair test and a decisive expression of the views of people in Scotland and a result that everyone will respect. This has been formalised by an Order in Council (per section 30 Scotland Act 1998) which devolves to the Scottish Parliament the competence to legislate for a referendum on independence which must be held before the end of 2014 (Order in Council, para 3).

For Stephen’s analysis of the franchise, the question asked, the role of the electoral commission and funding and spending rules, please visit the UK Constitutional Law Group’s Blog

Posted in Referendum process, campaign and vote | Leave a comment

Tall Tales: Religion and Scottish Independence

Michael Rosie, University of Edinburgh

Michael Rosie, University of Edinburgh

In this piece, originally published at What Scotland Thinks, the University of Edinburgh’s Michael Rosie discusses the links between independence and religion in Scotland, concluding that apparent differences between Catholics and Protestants on issues of constitutional change are a result of differences of demographics rather than religion.

Tall tales are common currency when it comes to religion’s supposed role in Scotland’s politics. On the one hand, there are occasional murmurings of a continued underlying ‘Protestant’ basis for Unionism in Scotland, as if Better Together marched, willingly or otherwise, to the beat of the Lambeg drum. Yet at the same time we are also told that Catholics could have much to fear from what might be a more stridently Protestant and ‘anti-Catholic’ independent Scotland.

Two responses spring to mind. First, if Scotland’s Protestants oppose constitutional change because of their deep-rooted Unionism, and Scotland’s Catholics say ‘no’ because they are afraid of the Protestants, then how on earth did we achieve devolution, let alone come to debate independence?

Secondly, these tall tales assume, a Scotland riven between these two Christian camps. Even if that were true in the distant past (and even there it seems like gross simplification) it certainly ignores the very profound religious change that has taken place over the last several generations.

Secondly, these tall tales assume, a Scotland riven between these two Christian camps. Even if that were true in the distant past (and even there it seems like gross simplification) it certainly ignores the very profound religious change that has taken place over the last several generations.

For the rest of Michael’s analysis, please visit What Scotland Thinks.

Michael Rosie is a Senior Lecturer in Sociology at the University of Edinburgh, and Director of the Institute of Governance. His research interests span (ir)religious identities, ‘sectarianism’, and national belonging.

Posted in Referendum process, campaign and vote | Leave a comment

Partnership after Independence

FutureUKIn this article published at the Future of the UK and Scotland and Scotland on Sunday, Dr. Nicola McEwen discusses the Scottish government’s proposals of independence, describing them as ’embedded within the British Isles’

In little over a year from now, the Scottish electorate will be asked to determine whether Scotland should be an independent country. But what does it mean to be an independent country in an interdependent world?

To paraphrase John Donne’s famous poem, no country is an island, entire of itself; every country a piece of the continent, a part of the main. This is especially so in today’s world. Finance is increasingly global, challenging the economic sovereignty of nations. International and supranational bodies can issue policy directives or set norms that steer national decision-making. Policy challenges like climate change, trafficking, food security, or pandemics, have little respect for national borders, forcing governments to work together.

The Scottish Government’s independence platform recognises these interdependencies. An independent Scotland would negotiate and pool its sovereignty within broader political, social and economic structures, including the European Union, NATO, and other international forums.

But one of the striking features of the campaign so far is the extent to which Scottish independence is seen as embedded within the British Isles. Leading figures in government talk of a new partnership with the rest of the UK – one which would be ‘a partnership of equals’. A partnership of this kind would entail significant cross-border co-operation, shared institutions and shared arrangements for the delivery of some public services.

From the DVLA to pensions and benefits, a formal currency union to an integrated energy market, a common travel area and shared security arrangements, the signals point toward a significant degree of co-operation in bureaucracy and service delivery.

In social security, for example, the Scottish Government accepted the recommendations of its expert working group on welfare for an integrated social security bureaucracy for an undefined transitional period after independence. In energy, the recent leaked report confirmed that the Scottish Government wants to maintain a single energy market, including a shared system for subsiding renewables which would continue to see the investment burden socialised across the UK.

The UK Government has cast doubt on the feasibility of such arrangements, but there are many examples of other neighbouring countries working together on matters of mutual interest. The Nordic countries share an electricity market, a common labour market and work together on a broad range of policy fields within the Nordic Council of Ministers. The Benelux countries – Belgium, the Netherlands and Luxembourg – have long co-operated in an economic union, and in 2012 put into effect a new treaty to co-operate more widely on trans-border policy challenges, including energy and security.

Most telling of all is the co-operation in recent years between the UK and Irish Governments. This has gone beyond the peace process to include setting up a single electricity market across the island of Ireland, a visa waiver scheme for visitors to both countries, and extensive bilateral co-operation across a range of sectors. In 2012, the two governments, building on the evident personal chemistry between the Prime Minister and the Taoiseach, signed a Joint Statement underlining their countries’ close historic and cultural relationship, their shared interest and co-operation in trade and EU relations, and their commitment to ‘a decade of renewed and strengthened co-operation between our two countries’. Last month, both governments were quick to embrace the recommendations of a jointly commissioned report for greater collaboration in energy, agri-food, construction, financial services, research, transport and tourism.

There is no reason, then, to think that an independent Scotland could not develop a new partnership of some kind with the rest of the UK after independence. It would not be a partnership of equals. In spite of their formal equality as independent nation-states, the differences in resources – of economic strength, population, policy capacity, political experience, influence and standing in the world – would bring inequalities back into the intergovernmental relationship. But the two countries would clearly continue to share historic, cultural and trade links, and would face many similar problems, simply by virtue of sharing an island. The legacy of intergovernmental co-operation within the Union should also have instilled the trust and interpersonal links upon which continued co-operation would depend.

Of course, there are no certainties in this debate; everything would be subject to negotiation after a vote. North-south co-operation of the kind envisaged would require sufficient goodwill, shared commitment and a rational calculation that co-operating and co-ordinating policy or service delivery would be in the interests of both nations. So long as there’s a political will on both sides of the border, there’s a way.

But it seems a very dependent form of independence, and it is not without downsides.

Pre-referendum, it helps the UK government, in particular, to nurture uncertainty about the implications of an independence vote. A new partnership needs a willing partner, and the UK government has – quite deliberately – cast some doubt about the prospects for intergovernmental collaboration of the kind and degree envisaged.

Post-referendum, post-independence, it would clearly be sensible to have good co-operative relationships with the rest of the UK and other neighbouring countries. But the greater the interdependence, the less scope there would be to do things differently – to act independently.

In addition, it can’t be assumed that the two countries would continue to share the common interests and mutual trust necessary to maintain extensive co-operation. Already since devolution, there has been significant divergence in the policy paths of Scottish and UK governments. And even if interests are shared today, they may be quickly rethought in the face of domestic political or public pressure.

Perhaps the biggest downside is the extent to which the emphasis on interdependence in the debate so far has masked the purpose of independence. There are many who are committed to independence, come what may, convinced that Scotland should be self-governing, but they are insufficient in number to secure a Yes vote. Others are open to persuasion, waiting to be convinced that an independent Scotland would be a better place to live. Yet, amid all the talk of continuity and administrative co-operation after independence, it is difficult to see what would change.

The Scottish Government’s forthcoming White Paper promises to be a prospectus for an independent Scotland. If it continues to treat independence as if it were a challenge of administration, it may fail to convince those looking to be inspired by a manifesto for a new Scotland.

Dr. Nicola McEwen, Academy of Government

Dr Nicola McEwen is ESRC senior Scotland fellow and director of public policy, Academy of Government, University of Edinburgh. This was originally posted on the ESRC’s website, The Future of the UK and Scotland

Posted in Referendum process, campaign and vote | 1 Comment

Event: What does Scotland think about independence?

Event: What does Scotland think about independence?

AQMeN

AQMeN

The AQMeN network will host an event as part of the Festival of Social Science.

What does Scotland think about independence?

What do people in Scotland think about the issues surrounding the referendum on independence in September 2014? Learn, debate and influence the analysis of up to date social science evidence that relates to a matter of crucial importance to the future of Scotland and the UK.

The event will feature special research projects including:

  • the use of the Scottish Social Attitudes Survey to investigate public views on major questions of policy that will be affected by the outcome of the referendum;
  • the development and results from the first systematic assessment of the views of 14-17 year olds to understand how new, young voters are responding to the unprecedented opportunity to influence the future of the country;
  • the results of an investigation on the impact of social media on public opinions relating to the refer­endum.

Wednesday 6th November 2013, 09:15-16:30
Royal College of Physicians, 9 Queen Street, Edinburgh

Register here to attend:

http://www.aqmen.ac.uk/events/foss2013

Posted in Events | Leave a comment

A New Underemployment Index for Scotland

Dr David Blanchflower

Dr David Blanchflower

Dr. David Bell

Dr David Bell

In this piece by Dr David Bell and Dr David Blanchflower (both of the University of Stirling) the authors explore the notion of underemployment and assess underemployment and unemployment rates in Scotland and the rest of the UK.

Part of the ESRC project on the Economics of Constitutional Change involves the collection of new data on the Scottish economy. This post develops this objective by describing a new measure of excess capacity (slack) in the Scottish labour market.

We have been working on measures of labour market excess capacity for some time and have focussed on the notion of underemployment.  This is a broader concept than unemployment which captures only the willingness of those who are not currently employed to supply work. The unemployment rate takes no account of the extra hours of work that some of those who are already employed would like to work. These hours are included in our more general measure of slack in the labour market.

The underemployment rate would be the same as the unemployment rate if all workers were happy with the hours they were being offered. But if they would like to work longer hours, the underemployment rate rises because there is more unfulfilled demand for extra hours (excess capacity) in the economy. If they would like to work fewer hours, the unemployment rate overstates the amount of excess capacity in the labour market. Typically older and male workers want to work fewer hours, while younger and female workers want more hours.

We have developed our measure of the underemployment rate in two previous papers, one published by the National Institute of Economic and Social Research and one by thePeterson Institute. The result is the Bell-Blanchflower underemployment index which uses individual data from the UK Labour Force Survey to modify the unemployment rate by taking account of the net change in working hours that existing employees say they would like to work.

The Bank of England published this index for the UK in its Inflation Report August 2013 (Table 3.A) and suggested that it reinforced the view that there is “a substantial margin of slack” [in the UK labour market] (Inflation Report August 2013 P30).  This matters to the Bank of England because its key duty is to control domestic inflation. Historically wage pressure was one of the major push factors behind increased inflation in the UK. But the ability to push for higher wages depends very much on the level of excess capacity in the labour market. The greater the excess capacity in the labour market, the weaker is the position of those seeking higher wages.

If Scotland were to become independent, it would likely have a central bank playing a similar role to that of the Bank of England. It would wish to assess the outlook for inflation in the Scottish economy. Clearly, the state of the labour market would be an important component of that assessment. Our argument would be that a measure of underemployment should form part of the analysis of the labour market. To determine how such an index might behave, we have used individual data from the Labour Force Survey to calculate our underemployment index for Scotland from 2001 to 2013. It is shown in Figure 1 alongside the unemployment rate and the equivalent rates for the UK as a whole. Table 1 shows the data on which Figure 1 is based. Our estimates are seasonally adjusted using the X-13ARIMA-SEATS seasonal adjustment method.

Unemployment

Unemployment has been taken as the traditional measure of excess capacity. Figure 1 shows that there was little difference between Scottish unemployment and underemployment rates until 2007. This was because the number of extra hours that some existing workers wished to work was almost exactly offset by the reduction in hours desired by a different group of workers. The same was true of the UK as a whole. However, since the beginning of Great Recession, more Scottish workers have expressed a wish to increase their hours, and fewer have argued for a cut in hours.  As a result, the underemployment rate has risen significantly above the unemployment rate. During 2012, the underemployment rate exceeded the unemployment rate by 1.9 per cent. Put another way, during 2012, on average, Scottish workers wanted to work a net 160 thousand extra hours per week. Their employers were unable or unwilling to hire them for these extra hours. This is equivalent to 51 thousand extra unemployed workers at the existing average Scottish workweek of 31.2 hours.  The unemployment rate on its own fails to account for this additional slack.

In Scotland and the UK as a whole, there has been a sharp upturn in underemployment since 2008. The more recent trend (from 2011Q4 to 2013Q1) shows Scotland performing relatively better in terms of underemployment compared with the UK as a whole (albeit starting from a slightly higher level at the end of 2011).  This is consistent with other labour market indicators, for example, from the Bank of Scotland. Nevertheless, over the last twelve years, there has been little significant change in the relative performance of the Scottish and UK labour markets in relation to their levels of excess capacity.

Table 1: Unemployment and Underemployment Rates in Scotland and the UK

Economics chart-page-001

Source: ONS Labour Force Survey Individual Data
Seasonal adjustment by the X-13ARIMA-SEATS method

This piece was originally published at The Economics of Constitutional Change blog and reprinted with the permission of the authors. 

Posted in Economy and Currency | Leave a comment

ESRC Seminar Series: Call for postgraduate participation

Security in Scotland, with or without constitutional change

ESRC

ESRC

The ESRC is offering funding for three UK postgraduate students to attend all six security seminars, which run from September 2013 to September 2015.

This seminar series will explore the implications of Scottish independence and constitutional change for security governance in Scotland and the UK. The seminars will span the referendum date, producing independent research evidence to inform policymaking and public debate in advance of the vote and in response to the outcome.

The seminars will bring together speakers for research and knowledge exchange from the intelligence and security community, UK Government departments with security competences, parliamentary committees providing security oversight, EU institutions, Scottish Civil and Parliamentary Services, Scottish Government, political parties, local government and the Police Service of Scotland. A team of academic security and constitutional experts will facilitate the seminars and provide independent intellectual input and synthesis, supplemented by invited speakers from the UK and comparative European countries. For more information visit: http://wp.me/p2nD2X-1N

Seminar titles:

1) October 2013: Assessing security governance in the UK and Scotland under current arrangements.

2) January 2014: The threat environment of the UK and Scotland in the context of the UK National Security Strategy.

3) May 2014: The foreign policy and comparative aspects of security governance for the UK, Scotland and its neighbours.

4) September 2014: Current and prospective accountability and oversight arrangements in the UK and Scotland.

5) January 2015: The security governance implications of the referendum outcome: independence or interdependence?

6) May 2015: Lessons from the series for understanding security governance. Future research programmes, maintenance of links and dialogue, and project outputs.

Postgraduate funding:

– Three postgraduate researchers will be selected to participate in the series on the basis of the quality of their research and its relevance to the seminar themes.

– Candidates should currently be undertaking a PhD or postdoctoral research in the UK.

– We will offer the selected candidates travel and accommodation costs (as appropriate) to the six seminars in Edinburgh from anywhere in the UK.

– We will ask the three selected candidates to make presentations on a relevant topic in the final seminar. We may also ask for some basic help with research assistance and organisation for the seminars.

– Our intention is that the postgraduate presentations will form the basis of journal articles, which we will offer to supervise, edit, and include in any collective outputs of the series if appropriate.

Interested candidates should send a one-page summary of their research and a CV to andrew.neal@ed.ac.uk by Friday 6th September. Selected candidates will be informed by Monday 16th September.

Other postgraduates and academic researchers may be able to attend the seminars as appropriate, unfunded and space permitting.

Posted in Defence and Security, Events | Leave a comment