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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. …


[Review Of The Book Jobs And Incomes In A Globalizing World], Gary S. Fields Dec 2011

[Review Of The Book Jobs And Incomes In A Globalizing World], Gary S. Fields

Gary S Fields

[Excerpt] This is a timely book about the labour market effects of globalization – specifically, the effects of globalization on jobs, wages and incomes in industrialized and developing countries. Ajit Ghose defines globalization as “a process of integration of national markets into a global market.” Globalization, he writes, is of such great concern now because of a new development: trade between developed and developing countries in competing products.


[Review Of The Book Technology Choice And Employment Generation By Multinational Corporations In Developing Countries], Gary S. Fields Dec 2011

[Review Of The Book Technology Choice And Employment Generation By Multinational Corporations In Developing Countries], Gary S. Fields

Gary S Fields

[Excerpt] The present volume, by addressing technology choice and employment in multinational enterprises (MNEs), adds to our understanding of the determinants of demand for labor in developing countries. The book synthesizes results from case studies of MNEs in Singapore, Nigeria, Brazil, India, and Kenya, and it does so in such a way that the main conclusions can easily be identified.


[Review Of The Book Urban Labour Market Structure And Job Access In India: A Study Of Coimbatore], Gary S. Fields Nov 2011

[Review Of The Book Urban Labour Market Structure And Job Access In India: A Study Of Coimbatore], Gary S. Fields

Gary S Fields

[Excerpt] This is a book about "labor status"—what it is, how it works, and how it can be used in labor market analysis. The authors make a convincing case that the labor status approach is indeed a useful one to follow.


[Review Of The Book Successes In Anti-Poverty], Gary S. Fields Nov 2011

[Review Of The Book Successes In Anti-Poverty], Gary S. Fields

Gary S Fields

[Excerpt] Michael Lipton has devoted a long career to studying and fighting poverty in the developing world. In this volume he talks about how to make anti-poverty programs work.


Place-To-Place Migration: Some New Evidence, Gary S. Fields Nov 2011

Place-To-Place Migration: Some New Evidence, Gary S. Fields

Gary S Fields

[Excerpt] This paper presents new evidence on the determinants of place-to-place migration in the United States. For understanding the causes of differential migration rates into and out of labor markets, knowledge of place-to-place migration functions is of interest for a number of reasons. Given a thorough understanding of gross place-to-place flows, one can proceed to calculate net flows; the reverse, of course, is not possible. There are also other advantages of place-to-place studies: parallelism to microeconomic behavior, opportunity to investigate specific 'origin-destination match-ups, recognition of the number and location of alternative opportunities for persons residing in different origins, and exploration …


Assessing Progress Toward Greater Equality Of Income Distribution, Gary S. Fields Nov 2011

Assessing Progress Toward Greater Equality Of Income Distribution, Gary S. Fields

Gary S Fields

[Excerpt] Income distribution is only one indicator of economic well-being useful in gauging improvements in the economic position of the poor; change in income distribution, appropriately conceived and measured, is as good a criterion as any for assessing progress toward the alleviation of poverty. Income is intimately bound up with a family's command over economic resources. Rising modern-sector employment or reduced infant mortality might be suggestive of improvements in the economic position of the poor; gains in real income among low-income groups provide direct evidence that poverty is being alleviated. This chapter answers the following questions: What are the strengths …


Taiwan’S Changing Employment And Earnings Structure, Gary S. Fields Sep 2011

Taiwan’S Changing Employment And Earnings Structure, Gary S. Fields

Gary S Fields

[Excerpt] In its determined pursuit of economic development throughout the latter part of the twentieth century, Taiwan consistently succeeded in achieving growth rates that were amongst the highest in the world; however, in tandem with such growth, a number of significant changes also took place in the island's labour market. This chapter begins by highlighting some of the most important of these aggregate changes, as follows: (i) the achievement, and subsequent maintenance of, essentially full employment; (ii) improvements in the overall mix of jobs, in particular, a steady reduction in the share of agricultural employment to total employment, a very …


Taiwan’S Private Sector Labour Market Prior To 1996, Gary S. Fields Sep 2011

Taiwan’S Private Sector Labour Market Prior To 1996, Gary S. Fields

Gary S Fields

[Excerpt] Analysis of the inter-industry earnings differentials revealed that these differentials were quite small by international standards, and indeed, that earnings were rising at roughly the same rate in every sector of the labour market in Taiwan. Wage differentials in Taiwan's private sector are generally in line with the economy as a whole; quite small by international standards, with real wages rising at very similar rates throughout all of the major private sector industries, whilst also demonstrating similar growth and decline patterns. For example, the agricultural sector in Taiwan is a declining sector of the economy, relative to non-agriculture, whilst …


Education And Taiwan’S Changing Employment And Earnings Structure, Gary S. Fields, Amanda Newton Kraus Sep 2011

Education And Taiwan’S Changing Employment And Earnings Structure, Gary S. Fields, Amanda Newton Kraus

Gary S Fields

[Excerpt] Between 1980 and 1992, the enormous changes in economic development in Taiwan had significant impacts on the island's labour market. Examples of these changes include the island's almost legendary and meteoric economic growth, the maintenance of essentially full employment, an increase of around 116 per cent in real labour earnings, considerable upgrading of the educational qualifications of the labour force as a whole, a sustained and systematic shift in the composition of the labour force from agriculture into manufacturing and services and occupational upgrading (defined as the expansion of the share of the labour force in the better occupations, …


Labour Market Modelling And The Urban Informal Sector: Theory And Evidence, Gary S. Fields Sep 2011

Labour Market Modelling And The Urban Informal Sector: Theory And Evidence, Gary S. Fields

Gary S Fields

[Excerpt] The purpose of this paper is to assess the compatibility between theoretical models of the urban informal sector (UIS) and empirical evidence on the workings of that sector in the context of developing countries' labour markets. My major point is that although the UIS is an excellent idea which has served us well in the 1970s and 1980s, we have need in the next round of research to refine our terminology and our models in light of empirical findings which have come to the fore in the interim. I would contend that what empirical researchers label "the informal sector" …


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 …


The Measurement Of Income Mobility: An Introduction To The Literature, Gary S. Fields, Efe A. Ok Aug 2011

The Measurement Of Income Mobility: An Introduction To The Literature, Gary S. Fields, Efe A. Ok

Gary S Fields

[Excerpt] Our main purpose in this survey is, therefore, to provide a somewhat unified setting within which the basic features of the theory of income mobility measurement can be outlined. Our aim is to provide a (subjectively) selective introduction to the literature on income mobility, and thereby shed some light on particular aspects of mobility measurement. Consequently, the present study should not be viewed as an exhaustive survey of the related literature. It is rather a very concise account of some key elements of the theory of income mobility measurement.


Employment In Low-Income Countries: Beyond Labor Market Segmentation?, Gary S. Fields Aug 2011

Employment In Low-Income Countries: Beyond Labor Market Segmentation?, Gary S. Fields

Gary S Fields

[Excerpt] Throughout the world, there are fundamentally two, and only two, ways that people can escape from poverty. One is by earning their way out of poverty. The other is by receiving socially-provided goods and services that lift them out of poverty. Even with multilateral and bilateral assistance, low-income countries are too poor to be able to make a significant dent in poverty by the social services route alone. This means that creating more and better earning opportunities for the poor is the only other option available. In policy discussions, two mistakes are often made. One is to assume that …


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 …


Income Mobility, Gary S. Fields Aug 2011

Income Mobility, Gary S. Fields

Gary S Fields

Income mobility means different things to different people. This article explains the six different mobility concepts used in the literature, reviews the various indices used in the mobility literature to measure these concepts, summarizes the difference the use of different mobility concepts and measures makes in practice, presents the axiomatic approach to income mobility, and discusses a number of other issues that arise in the mobility literature.


The Employment Problem In South Africa, Gary S. Fields Aug 2011

The Employment Problem In South Africa, Gary S. Fields

Gary S Fields

South Africa is experiencing a major employment problem that includes not only unemployment, but also low labour market earnings. In this article, Gary Fields discusses what can be done to alleviate South Africa's employment problem.


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 …