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Wage Inequality In The Manufacturing Sector Of The Mexico And Its Regions, According To The Trade Opening, 2005-2015, Reyna E. Rodríguez Pérez, Vicente German-Soto, Crhistian Joel González Cuatianquis 2016 Universidad Autónoma de Coahuila

Wage Inequality In The Manufacturing Sector Of The Mexico And Its Regions, According To The Trade Opening, 2005-2015, Reyna E. Rodríguez Pérez, Vicente German-Soto, Crhistian Joel González Cuatianquis

Vicente German-Soto

This paper analyzes the evolution of wage inequality in the manufacturing sector of the regions of Mexico, according to the grade of exposition to trade opening. The methodology consists in measuring the wage inequality through the Theil index decomposition; it is calculated from data of the Survey of Occupation and Employment (ENOE) 2005 and 2015. The results indicate that wage inequality has decreased in Mexico and in its regions by 2015, especially in those areas with low exposition to trade opening. The gap decomposition shows that the intra-part is the principal source of inequality, which is higher in the sex-classification ...


Ex Ante Capacity Effects In Evolutionary Labor Markets With Adaptive Search, Leigh Tesfatsion 2016 Iowa State University

Ex Ante Capacity Effects In Evolutionary Labor Markets With Adaptive Search, Leigh Tesfatsion

Leigh Tesfatsion

This study reports on computational experiments for an agent-based labor market-model-with adaptive choice'and refusal of work site' partners and with endogenously evolving work site behaviors. Two treatment factors ^e experimentally varied: market structure; and ex ante capacity constraints on potential work offers and job openings.- Particular attentions focused on experimentally determined correlations between treatment factors and the formation of contractual networks among workers and employers, and between' contractual network"formation and the'types'o!f work site interactions and welfare outcomes that these contractual networks support.


Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim 2016 Technological and Higher Education Institute of Hong Kong, Vocational Training Council

Do Foreign Companies Pay Higher Wages Than Their Local Counterparts In Malaysian Manufacturing?, David Lim

Prof. David Lim

This paper shows that foreign companies pay higher wages than their local counterparts in Malaysian manufacturing. Step-wise regression analysis shows that this is due to two factors. The first, and perhaps the more important, is the greater capital intensity of the production processes used by foreign companies. The second is their tendency to pay wages that they consider, or that are considered to be, commensurate with the wages that they pay in their home countries. This may be called the demonstration effect of wage remuneration in less developed countries.


"Sweat Labor" And Wages In Malaysian Manufacturing, David Lim 2016 Technological and Higher Education Institute of Hong Kong, Vocational Training Council

"Sweat Labor" And Wages In Malaysian Manufacturing, David Lim

Prof. David Lim

References have often been made to the presence of "sweat labor" in manufacturing in less developed countries (LDCs) and of the need to introduce minimum-wage legislation to protect the interests of such employees. However, the data on the wages paid to such workers are almost nonexistent, and the discussion so far has been couched in general terms. I shall attempt to provide some of the empirical basis for the discussion in Malaysia.


Political Bargaining And Cartelization In The New Deal: Orange Marketing Orders, Elizabeth Hoffman, Gary D. Libecap 2016 Iowa State University

Political Bargaining And Cartelization In The New Deal: Orange Marketing Orders, Elizabeth Hoffman, Gary D. Libecap

Elizabeth Hoffman

Yet, in our generation we have seen scarcity vanquished, and our ever present fear, so far as agriculture is concerned, is a fear of over abundance. We wish, if not for scarcity, at least for relief from price depressing surpluses. Rexford G. Tugwell, assistant secretary of agriculture.


The Economic Efficacy Of Reintegration Assistance For Former Child Soldiers, Jonathan B. Kaufmann 2016 American University

The Economic Efficacy Of Reintegration Assistance For Former Child Soldiers, Jonathan B. Kaufmann

Undergraduate Economic Review

There is no consensus among scholars on the efficacy of reintegration assistance programs, including how their services affect reintegration outcomes. This research is the first statistical analysis of the economic impacts of reintegration assistance for former child soldiers. Several regression analyses were performed to determine the effect of reintegration assistance on earnings and social capital. The results indicate that no statistically significant relationship exists between reintegration assistance and earnings or social capital. Conversely, societal interventions such as increasing access to education and promoting traditional cleansing ceremonies were effective.


Workplace Deviance And Recession, Aniruddha Bagchi, Siddhartha Bandyopadhyay 2016 Kennesaw State University

Workplace Deviance And Recession, Aniruddha Bagchi, Siddhartha Bandyopadhyay

Aniruddha Bagchi

We examine the relationship between the incidence of workplace deviance (on-the-job crime) and the state of the economy. A worker's probability of future employment depends on whether she has been deviant as well as on the availability of jobs. Using a two period model we show that the net impact on deviant behavior to changes in unemployment can go either way depending upon the nature of the equilibrium. Two kinds of equilibria are possible. In one, a non-deviant's probability of being employed increases as expected market conditions improve which lowers the incentive to be a deviant. In contrast ...


Restructuring Social Security: How Will Retirement Ages Respond?, Gary S. Fields, Olivia S. Mitchell 2016 Cornell University

Restructuring Social Security: How Will Retirement Ages Respond?, Gary S. Fields, Olivia S. Mitchell

Gary S Fields

[Excerpt] Budgetary pressures on the Social Security system have increased in recent years, prompting a variety of proposals to restructure the U.S. retirement income program. Most of these proposals ignore the possibility that the retirement patterns of older workers are likely to respond to changes in the incentives to retire. This chapter presents two important pieces of information for policymakers. First, we provide previously unavailable evidence on how changes in the structure of Social Security benefits would alter the economic incentives to retire at different ages. Second, we compute how retirement patterns would change in response to altered incentives ...


Labor Market Analysis Using Sipp, Gary S. Fields, George H. Jakubson 2016 Cornell University

Labor Market Analysis Using Sipp, Gary S. Fields, George H. Jakubson

Gary S Fields

This paper examines the potentiality of the Survey of Income and Program Participation (SIPP) for labor market analysis. We consider five areas of analysis: (1) labor force participation, employment, and unemployment; (2) labor market effects of income maintenance programs; (3) earnings; (4) work and retirement of the elderly; and (5) migration. We find that the SIPP is a potentially rich resource for labor market analysis, surpassing much of what is to be found in existing databases. We note some remaining problems and make recommendations for changes.


The Meaning And Measurement Of Income Mobility, Gary S. Fields, Efe A. Ok 2016 Cornell University

The Meaning And Measurement Of Income Mobility, Gary S. Fields, Efe A. Ok

Gary S Fields

Income mobility may be seen as arising from two sources: (i) the transfer of income among individuals with total income held constant, and (ii) a change in the total amount of income available. In this paper, we propose several sensible properties defining the concept of income mobility and show that an easily applicable measure of mobility is uniquely implied by these properties. We also show that the resulting measure is additively decomposable into the two sources listed above, namely, mobility due to the transfer of income within a given structure and mobility due to economic growth or contraction. Finally, these ...


Rewards For Continued Work: The Economic Incentives For Postponing Retirement, Olivia S. Mitchell, Gary S. Fields 2016 Cornell University

Rewards For Continued Work: The Economic Incentives For Postponing Retirement, Olivia S. Mitchell, Gary S. Fields

Gary S Fields

This chapter develops empirical measures of the economic incentives for deferred retirement among older workers. Using a new data file on pay and pensions, we construct intertemporal budget sets reflecting income available to workers at alternative retirement ages. The analysis explores how continued labor force attachment is rewarded in terms of net earnings, Social Security benefits, and private pension income.


On-The-Job Search In A Labor Market Model: Ex Ante Choices And Ex Post Outcomes, Gary S. Fields 2016 Cornell University

On-The-Job Search In A Labor Market Model: Ex Ante Choices And Ex Post Outcomes, Gary S. Fields

Gary S Fields

This paper builds a multi-sector labor market model including wage dualism, open unemployment, underemployment, on-the-job search, and expected wage equalization. The innovative feature of this model is the distinction between the ex ante allocation of the labor force among search strategies and the ex post allocation of the labor force among labor market outcomes. Among the findings are: more efficient on-the-job search lowers the equilibrium unemployment rate; in a rational expectations equilibrium, the average rural and urban wages will not be equal; modern sector enlargement may leave labor market conditions in one of the sectors unchanged, even when wages and ...


The Effects Of Social Security Reforms On Retirement Ages And Retirement Incomes, Gary S. Fields, Olivia S. Mitchell 2016 Cornell University

The Effects Of Social Security Reforms On Retirement Ages And Retirement Incomes, Gary S. Fields, Olivia S. Mitchell

Gary S Fields

Recent changes legislated in the U.S. Social Security system have altered the economic incentives to work and retire. Some older workers will respond to these new incentives by retiring at different ages. This paper evaluates the signs and magnitudes of these responses. Four specific changes in the structure of Social Security benefits are examined: raising the normal retirement age, delaying the cost-of-living adjustment, lowering early retirement benefits, and increasing late retirement payments. Behavioral parameters are estimated using an ordered logit model of retirement ages; these are used to predict how retirement behavior might respond to each of the four ...


Income-Generating Functions In A Low Income Country: Colombia, Gary S. Fields, T. Paul Schultz 2016 Cornell University

Income-Generating Functions In A Low Income Country: Colombia, Gary S. Fields, T. Paul Schultz

Gary S Fields

Income generating functions are statistical tools used to explain income inequality and other economic outcomes and behavior. These functions are often associated with a strict human capital framework, but they need not be. Instead, they may be viewed as a reduced form equation summarizing the relationship between income and various personal and locational characteristics. Following this latter interpretation, we develop the regression and analysis of variance approaches to income generating functions and estimate them empirically using micro-economic data from one low income country, Colombia. Proceeding to increasingly parsimonious specifications of income generating functions, insights are gained into the structure of ...


Employment, Income Distribution And Economic Growth In Seven Small Open Economies, Gary S. Fields 2016 Cornell University

Employment, Income Distribution And Economic Growth In Seven Small Open Economies, Gary S. Fields

Gary S Fields

[Excerpt] Resurgent interest has been manifested among development economists in trickle-down, i.e., the view that the more rapid the rate of economic growth, the more rapid the improvement in employment and income distribution. Throughout this paper, the term ‘income distribution’ will refer to the location and dispersion of the pattern of incomes, i.e., to ‘absolute incomes and poverty’ and to ‘relative income inequality’. Empirical evidence supports trickle-down in some cases, but the evidence is contrary to trickle-down in others.

These data indicate:

  1. A high rate of economic growth is neither necessary nor sufficient for inequality to decline.
  2. A ...


Income Distribution And Economic Growth, Gary S. Fields 2016 Cornell University

Income Distribution And Economic Growth, Gary S. Fields

Gary S Fields

[Excerpt] Who benefits how much from economic growth and why? This question is fundamental to today’s development economics. This chapter reviews some of the major lessons learned and major directions for future research in the study of income distribution and economic development.


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

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.


Import Competition In The High-Wage Sector And Trade Policy Effects On Labor, Gary S. Fields, Earl L. Grinols 2016 Cornell University

Import Competition In The High-Wage Sector And Trade Policy Effects On Labor, Gary S. Fields, Earl L. Grinols

Gary S Fields

This article evaluates the employment and welfare effects of increased trade competition and protection in economies with wage dualism, unemployment, and on-the-job search. A micro-based measure of economy welfare distinguishes between workers and other sectors of the economy is developed to deal with labor market imperfections and distributional issues. For example, increased competition in high-wage sector goods reduces high-wage employment, but may or may not increase overall unemployment. Policy may be chosen to mitigate loss in worker earnings that are partly or wholly offset by gains to consumers of the importable.


Rural Population Growth, 1950–1990: The Roles Of Human Capital, Industry Structure, And Government Policy, Tzu-Ling Huang, Peter F. Orazem, Darin Wohlgemuth 2016 Chung Yuan Christian University

Rural Population Growth, 1950–1990: The Roles Of Human Capital, Industry Structure, And Government Policy, Tzu-Ling Huang, Peter F. Orazem, Darin Wohlgemuth

Peter Orazem

Human capital raises rural incomes, but this effect is swamped by higher returns to human capital in urban markets. This leads to “brain drain” from rural areas. Populations grow more rapidly in rural counties that have a diversified employment base. Farm population grows faster (or declines more slowly) in counties with relatively high farm income, and nonfarm populations grow faster in counties with relatively high nonfarm income. However, higher farm incomes lead to slower nonfarm population growth and vice versa. Rural county government services financed by local taxes or debt have neutral or negative effects on population growth.


Lack Of Education, Peter F. Orazem 2016 Iowa State University

Lack Of Education, Peter F. Orazem

Peter Orazem

This chapter reviews the stylized facts regarding the distribution of human capital investments and the returns to those investments in developing countries. It then examines recent evidence regarding which policies can induce increased human capital investments in the most efficient manner, using estimated benefits and costs as a guide. Supplyside strategies such as increasing school access or improving school quality are more costly, have less certain benefits, and have a weak record of success. Demand-side interventions such as school sited health programs, vouchers, and conditional transfers have a greater likelihood of improving literacy in the most cost-effective manner.


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