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Growth and Development

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[Review Of The Book Employment And Development: A New Review Of Evidence, By David Turnham], Gary S. Fields Jun 2017

[Review Of The Book Employment And Development: A New Review Of Evidence, By David Turnham], Gary S. Fields

Gary S Fields

[Excerpt] I first encountered David Turnham’s work after majoring in labor economics in undergraduate and graduate school and spending a year in Nairobi studying and modeling the labor market there. The atmosphere in Kenya was crackling with intellectual excitement: John Harris and Michael Todaro had just showed how the solution to urban unemployment might be rural development, George Johnson had demonstrated that earnings function analysis ‘worked’ despite doubts about the quality of developing country data and the applicability of developed country concepts, Dharam Ghai was developing the basic human needs approach to development, and Joe Stiglitz was formulating efficiency wage …


Employment And Economic Growth In Costa Rica, Gary S. Fields Nov 2016

Employment And Economic Growth In Costa Rica, Gary S. Fields

Gary S Fields

Costa Rica’s economic growth in the last 25 years has had favorable labor market and income distribution consequences. Overall, employment growth kept pace with labor force growth, the mix of jobs improved, real wages rose, and relative inequality and absolute poverty fell. But during the economic crisis of 1980-82, when real per capita income plummeted, labor market conditions deteriorated markedly: unemployment doubled, employment composition worsened, and real wages fell by 40%. Growth, labor market conditions, and income distribution have moved together.


Challenges And Policy Lessons For The Growth-Employment-Poverty Nexus In Developing Countries, Gary S. Fields Jul 2016

Challenges And Policy Lessons For The Growth-Employment-Poverty Nexus In Developing Countries, Gary S. Fields

Gary S Fields

Productivity growth and structural change are generally considered to be important determinants of economic growth. However recent research revealed that they do not necessarily lead to higher growth and employment rates. Recent studies, drawing on data from developing countries, showed that only the “right” kind of productivity growth resulted in higher employment rates. Enterprises in Africa and Latin America caught up in matters of technology; however, this process resulted in a substitution of employment by technology. The same is true for structural change; only the “right” kind of structural change caused more growth and employment. Whereas in Asia, labour shifted …


Employment And Development In The Developing World: Taking Stock Of What Research Can Teach Us, Gary S. Fields Jul 2016

Employment And Development In The Developing World: Taking Stock Of What Research Can Teach Us, Gary S. Fields

Gary S Fields

Productivity growth and structural change are generally considered to be important determinants of economic growth. However recent research revealed that they do not necessarily lead to higher growth and employment rates. Recent studies, drawing on data from developing countries, showed that only the “right” kind of productivity growth resulted in higher employment rates. Enterprises in Africa and Latin America caught up in matters of technology; however, this process resulted in a substitution of employment by technology. The same is true for structural change; only the “right” kind of structural change caused more growth and employment. Whereas in Asia, labour shifted …


Aid, Growth And Jobs, Gary S. Fields Jul 2016

Aid, Growth And Jobs, Gary S. Fields

Gary S Fields

Various development objectives are worthy, but one objective merits special attention: reducing the scourge of absolute economic misery in the world. This study focuses on an important but relatively underemphasized approach to poverty reduction: helping the poor earn more in the labour market for the work they do, so that they can buy the goods and services they need to move up out of poverty. The core of the study is divided into three sections: defining the global poverty challenge and the world’s employment problem, presenting policy options for improving employment outcomes for the poor, and suggesting ways of choosing …


Changing Labor Market Conditions And Economic Development In Hong Kong, The Republic Of Korea, Singapore, And Taiwan, China, Gary S. Fields Sep 2015

Changing Labor Market Conditions And Economic Development In Hong Kong, The Republic Of Korea, Singapore, And Taiwan, China, Gary S. Fields

Gary S Fields

In the newly industrializing economies (NIEs) of Hong Kong, the Republic of Korea, Singapore, and Taiwan (China), the entire working population has benefited from labor market institutions. The East Asian NIEs attained and maintained generally full employment, improved their job mixes, raised real earnings, and lowered their rates of poverty. This article reaches two principal conclusions. First, labor market conditions continued to improve in all four economies in the 1980s at rates remarkably similar to their rates of aggregate economic growth. Second, labor market repression was not a major factor in the growth experiences of these economies in the 1980s. …


Employment Generation And Poverty Alleviation In Developing Economies, Gary S. Fields Sep 2011

Employment Generation And Poverty Alleviation In Developing Economies, Gary S. Fields

Gary S Fields

[Excerpt] We know well that the East Asian economies have achieved higher economic growth rates than those in any other region of the world and that production for world markets has featured as a hallmark of the East Asian successes. This paper has three purposes: first, to present comparative data showing that the rates at which employment opportunities improve and poverty is reduced mirror countries' differential growth experiences; second, to examine differences in labour market institutions, demonstrating that those in East Asia have similarities more likely to lead to higher output performance and shared improvements in living conditions; and third, …


Long-Term Economic Mobility And The Private Sector In Developing Countries: New Evidence, Gary S. Fields, Walter S. Bagg Aug 2011

Long-Term Economic Mobility And The Private Sector In Developing Countries: New Evidence, Gary S. Fields, Walter S. Bagg

Gary S Fields

[Excerpt] Consistent with the mainstream view of economic growth as a factor promoting long-term economic mobility, we hypothesize that those economies in which economic growth has been most rapid are precisely the ones that have achieved the greatest progress toward poverty reduction through improved labor market conditions, especially in private employment. We also hypothesize that the positive relationship running from economic growth through the labor market to poverty reduction continued to hold in the 1990s in essentially the same way as in earlier years when globalization was less intense. Both hypotheses are confirmed by our data. Our results therefore cast …


Reducing Poverty: The Overall Framework, Guy Pfeffermann, Gary S. Fields Aug 2011

Reducing Poverty: The Overall Framework, Guy Pfeffermann, Gary S. Fields

Gary S Fields

[Excerpt] How private firms contribute to economic mobility and poverty reduction and what governments can do to enhance their contribution is the theme of this book. We look first at the positive role the private sector plays in economic development, a role that has received less emphasis that that of other players. We then focus on the labor market and how various mechanisms in the economy interact to affect conditions for people as workers and as consumers. The volume examines the links among the business environment, private sector development, economic growth, poverty reduction, and economic mobility. Until recently, development economists …


Escaping From Poverty: Household Income Dynamics In Indonesia, South Africa, Spain, And Venezuela, Gary S. Fields, Paul L. Cichello, Samuel Freije, Marta Menéndez, David Newhouse Aug 2011

Escaping From Poverty: Household Income Dynamics In Indonesia, South Africa, Spain, And Venezuela, Gary S. Fields, Paul L. Cichello, Samuel Freije, Marta Menéndez, David Newhouse

Gary S Fields

[Excerpt] This study presents the main results of a larger, more technical report (Fields and others 2001) and subsequent work (Fields and others 2002) that analyzes income mobility in Indonesia, South Africa, Spain, and Venezuela. These economies were selected on the basis of the availability of panel data with which to analyze household income dynamics in the 1990s. By following households over time, we are able to investigate how households that were poor initially fared economically, relative to their richer counterparts. We can learn more about how and why households exit—and enter—poverty. To gauge income mobility, this study centers on …


Do Inequality Measures Measure Inequality?, Gary S. Fields Aug 2011

Do Inequality Measures Measure Inequality?, Gary S. Fields

Gary S Fields

[Excerpt] In the literature, much attention has been paid to a number of aspects of inequality including the distinction between relative and absolute inequality, axiomatization of inequality, the Lorenz criterion for inequality comparisons, properties of various inequality measures, and inequality decomposition. In no way do I wish to argue with the main results derived in these areas. Rather, my purpose here is to add to the theory of inequality measurement by dealing with one aspect of inequality which has been largely ignored by economists and by others. This is the question of how inequality changes - in particular, whether it …


International Labor Standards And Decent Work: Perspectives From The Developing World, Gary S. Fields Aug 2011

International Labor Standards And Decent Work: Perspectives From The Developing World, Gary S. Fields

Gary S Fields

[Excerpt] It is a very positive development that the world community has now reached agreement on four core labor standards, described further below. The moral force of this agreement will help slow and possibly even reverse the infamous "race to the bottom"—for example, child labor in the carpet industries of India undermining Nepal's efforts to keep its carpet industry free of child labor (Hensman, 2000). Ironically, some of the loudest and most strident voices against international labor standards come from the poorest parts of the world. My thesis in this chapter is that while some of the arguments being voiced …


A Welfare Economic Analysis Of Labor Market Policies In The Harris-Todaro Model, Gary S. Fields Mar 2010

A Welfare Economic Analysis Of Labor Market Policies In The Harris-Todaro Model, Gary S. Fields

Gary S Fields

This paper presents a welfare economic analysis of the benefits of various labor market policies in the Harris-Todaro labor market model. The policies considered are a policy of modern sector job creation, which I call modern sector enlargement (MSENL); a policy of rural development, which I call traditional sector enrichment (TSENR); and a policy of wage limitation in the urban economy, which I call modern sector wage restraint (MSWR). First, I analyze the inequality effects of these policies. I then perform two welfare economic analyses, the first based on summary measures of labor market conditions (total labor earnings, unemployment, inequality …