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The Effects Of Population Diversity On The Economic And Household Welfare Of Metropolitan Areas In The U.S., Liria M. Litano

FIU Electronic Theses and Dissertations

The purpose of this paper was to understand the impact of population diversity on household and economic welfare in all the Metropolitan Statistical Area (MSA) in the United States of America (U.S.). We focused on positive views concerning the relationships between population diversity and factors such as human capital, knowledge, and innovation. We established economic growth factors using the Endogenous Growth Theory, which stated that human capital, innovation, and knowledge were significant contributors to economic growth (Romer, 1994). We argued that population diversity affected these contributors; therefore, it helped to create economic growth.

From a human capital perspective, population diversity …

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 …

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 high rate …

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

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.

Earnings Mobility In Times Of Growth And Decline: Argentina From 1996 To 2003, Gary S. Fields, María Laura Sánchez Puerta

Gary S Fields

In recent years, the economy of Argentina has experienced both rapid economic growth and severe economic decline. In this paper, we use a series of one-year long panels to study who gained the most in pesos when the economy grew and who lost the most in pesos when the economy contracted. Various considerations led us to expect that mobility would be divergent—that is, that the individuals who started with the highest initial earnings would enjoy the largest earnings gains in pesos. Contrary to expectations and for a wide range of specifications, mobility is found to be mostly convergent, sometimes neutral, …

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 …

Falling Labor Income Inequality In Korea’S Economic Growth: Patterns And Underlying Causes, Gyeongjoon Yoo, Gary S. Fields

Gary S Fields

Over the last twenty-five years, the economy of the Republic of Korea achieved a remarkable growth rate of 7 percent per year in real per capita income, causing it to be labeled, justifiably, as a “miracle economy.” This exceptional economic growth has been accompanied by an even more exceptional fall in labor income inequality. Using a newly-developed methodology, we use data from Korea’s Occupational Wage Surveys to quantify the importance of various factors that have contributed to the fall in labor income inequality in Korea. We find the most important factors explaining the level of income inequality are job tenure, …

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. …

Changes In Poverty And Inequality In Developing Countries, Gary S. Fields

Gary S Fields

This paper presents new data on poverty, inequality, and growth in those developing countries of the world for which the requisite statistics are available. Economic growth is found generally but not always to reduce poverty. Growth, however, is found to have very little to do with income inequality. Thus the "economic laws" linking the rate of growth and the distribution of benefits receive only very tenuous empirical support here.

Income Distribution In Developing Economies: Conceptual, Data, And Policy Issues In Broad-Based Growth, Gary S. Fields

Gary S Fields

[Excerpt] The aim of economic development is to raise the standard of living of a country's people, especially its poor. Economic growth, particularly when broadly based, is a means to that end. 'Underdevelopment' can be defined as a state of severely constrained choices. When one is choosing from among an undesirable set of alternatives, the outcome will itself be undesirable. Standards of living will be low. If standards of living are to be improved, people must have a better set of alternatives from which to choose. 'Economic development' is the process by which the constraints on choices are relaxed. Based …

Allowing For Low-Cost Labor In Underdeveloped And Developing Countries As A Method For Initiating Economic Industrialization, Jordon A. Wolfram

Selected Honors Theses

The topic presented here closely examines the link between low-cost labor and the affect that it has on initiating industrialization in underdeveloped and developed countries. It can ultimately create a better standard of living for a country’s general population in the future, but the initial conditions for the laborers can be harsh. The low wage labor force achieves this goal by creating a competitive labor market which has the ability to stimulate economic growth. Once the initial steps of creating manufacturing and industry are achieved, then the general standard of living has robust potential to increase in the country as …

[Review Of The Book Growing Public: Social Spending And Economic Growth Since The Eighteenth Century], George R. Boyer

George R. Boyer

[Excerpt] Lindert’s discussion of the costs and benefits of the welfare state is only one part, albeit the most eye-catching part, of this wide-ranging work in comparative economic history. Volume 1, written for non-specialists, presents “The Story”; it is tailor-made for upper-level undergraduate courses in economic and social history, public policy, and welfare economics. Volume 2 presents “Further Evidence,” including the regression results that underlie the findings presented in the first volume, and eighty pages of appendices. Graduate students and scholars studying the welfare state will want to read this volume in conjunction with Volume 1. For those who want …

Unemployment And The Uk Labour Market Before, During And After The Golden Age, Timothy J. Hatton, George R. Boyer

George R. Boyer

During the ‘golden age’ of the 1950s and 1960s unemployment in Britain averaged 2 per cent. This was far lower than ever before or since and a number of hypotheses have been put forward to account for this unique period in labour market history. But there has been little attempt to isolate precisely how the determinants of wage setting and unemployment differed before, during and after the golden age. We estimate a two-equation model over the whole period from 1872 to 1999 using a newly constructed set of long-run labour market data. We find that the structure of real wage …

[Review Of The Book Beneath The Miracle: Labor Subordination In The New Asian Industrialism], Gary S. Fields

Gary S Fields

[Excerpt] Have workers in the newly industrializing countries (NIC's) of Asia benefited from the rapid economic growth in their economies? In this important book, Frederic Deyo contends that "beneath the miracle" of economic growth is the "extreme political subordination and exclusion of workers" in the economic development of Hong Kong, Korea, Singapore, and Taiwan. He sees the inability of East Asian workers to "influence the political and economic decisions that have shaped their lives" as the "dark underside" of Asian economic growth. The main body of the book is an examination of why this subordination has taken place.

[Review Of The Book Studies Of Urban Labour Market Behaviour In Developing Areas], Gary S. Fields

Gary S Fields

[Excerpt] In the 1970s social scientists from all disciplines became aware that an understanding of how labor markets function is central to determining who benefits from economic growth. Only a few researchers concerned with the economic development of Asia, Africa, and Latin America, however, have examined labor markets in any serious way. Hence, a compendium entitled Studies of Urban Labour Market Behavior in Developing Areas is particularly welcome.

[Review Of The Book Bridging The Gap: Four Newly Industrialising Countries And The Changing International Division Of Labour], Gary S. Fields

Gary S Fields

[Excerpt] The central focus of this book is the labor force in the context of structural change. Its title, "Bridging the Gap," signifies a concern with drawing the NICs closer to the developed world. The author, a senior economist and staff member of the International Labour Organisation, argues that "the experience of these four NICs also holds lessons for OECD countries, as it deals with such now universal issues as the role of government in the promotion of new ventures; how new growth areas can be identified; how foreign investors are attracted; and what the costs and benefits of government …

Energy Consumption, Co2 Emissions And Economic Growth: A Revisit Of The Evidence From India, Aviral Kumar Tiwari Mr.

Aviral Kumar Tiwari

We examined the causality in both static and dynamic framework between energy consumption, CO2 emissions and economic growth in India using Granger approach in VAR framework. We found from the VAR analysis that energy consumption, capital and population Granger-cause economic growth not the vice versa. IRFs and VDs analysis results indicate that CO2 emissions has positive impact on energy use and capital but negative impact on population and GDP. Energy consumption has positive impact on CO2 emissions and GDP but its impact is negative on capital and population. This implies that, in the framework of production function, capital and population/labour …

Market Reforms In Energy Sector: Evidence From A Panel Data Based Cointegration Analysis Of Brics Countries, Aviral Kumar Tiwari Mr., Bharti Pandey Dr., A P. Tiwari Dr.

Aviral Kumar Tiwari

The present study tested cointegration property of income, primary energy consumption and co2 emissions among the BRICS (Brazil, Russian Federation, India, China and South Korea) countries. We used battery of unit root and cointegration test to achieve our objective and employed period is 1985-2009. We find consistently that all variables are nonstationary in the level from whereas stationary in the first difference form. However, results of cointegration are found to be sensitive with the inclusion of lag structure in the data set not the specification used. Nevertheless, we can conclude that there are evidence of two cointegrating equations in our …

[Review Of The Book The Four Little Dragons: The Spread Of Industrialization In East Asia], Gary S. Fields

Gary S Fields

[Excerpt] This slim and eminently readable volume presents the 1990 Edwin O. Reischauer lectures delivered by Ezra Vogel, the Henry Ford II Professor of Social Sciences at Harvard University and a leading scholar on Asia. In the first chapter Vogel establishes the context for the experiences of the "late late industrializes". Japan and "the Four Little Dragons" (Hong Kong, Korea, Singapore, and Taiwan). The next three chapters are devoted to the experiences of Taiwan, Korea, and Hong Kong and Singapore, respectively. The last chapter offers an explanation for the dragons' successes.

Who Benefits From Economic Development? Reply, Gary S. Fields

Gary S Fields

[Excerpt] Before the appearance of my 1977 paper in this Review, it was widely thought that the income distribution worsened during the economic growth which took place in Brazil during the 1960's. My paper demonstrated that the familiar data, when analyzed from an absolute perspective, could show that the poor had benefited from growth. I found that the entire income distribution shifted, benefiting every income class; that the proportion of the economically active population with incomes below the poverty level (as defined by Brazilian standards) declined during the decade; that those who remained poor were less poor than before in …

Educational Progress And Economic Development, Gary S. Fields

Gary S Fields

[Excerpt] Many development agencies seek to channel economic assistance to those less-developed countries (LDCs) and activities that will help the poor to achieve a better life (this phraseology is from the U.S. Foreign Assistance Act as amended in 1975). Education is an important indicator of countries' performance. This chapter examines the suitability of alternative education indicators as guides for planning and evaluating countries' progress and commitment toward increasing the participation of the poor in development.

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 …

Place-To-Place Migration In Colombia, Gary S. Fields

Gary S Fields

[Excerpt] This paper builds upon earlier work of mine which explored the determinants of population migration in Colombia. As before, the basic proposition is that areas' economic opportunities play a central role in determining the spatial allocation of the population. My earlier paper used published data from the 1973 Colombian Census of Population to establish that the rates of net lifetime migration into Colombia's 23 provinces (or, as they are known in Colombia, "departments") are associated with those areas' labor market conditions. The present paper uses unpublished data for 12 zones (six regions, rural and urban segments of each) to …

Growth And Distribution In The Market Economies Of East Asia, Gary S. Fields

Gary S Fields

This is a review and comparison of seven books dealing with income distribution and economic development focusing on the countries of East Asia. The books reviewed are: Irma Adelman and Sherman Robinson, Income Distribution Policy in Developing Countries. New York: Oxford University Press, 1979. Edward K. Y. Chen, Hyper-Growth in Asian Economies: A Comparative Study of Hong Kong, Japan, Korea, Singapore, and Taiwan. New York: Holmes & Meier, 1979. John C. H. Fei, Gustav Ranis, and Shirley W. Y. Kuo, Growth with Equity: The Taiwan Case. New York: Oxford University Press, 1980. Walter Galenson, ed., Economic Growth and Structural Change …

Industrialization And Employment In Hong Kong, Korea, Singapore, And Taiwan, Gary S. Fields

Gary S Fields

[Excerpt] What are the links between macroeconomic growth and microeconomic development objectives? The initial view held by many economists, especially Latin America specialists, was that the goals of growth, employment, and income distribution are mutually incompatible and that the pursuit of all these objectives at once is bound to be futile. But in the last few years, studies of the economies of the Asian Newly Industrializing Countries (NICs), Hong Kong, Korea, Singapore, and Taiwan—the so-called "Group of Four"—have emerged, and they point to very rapid aggregate growth and marked improvements in labor market conditions and in income distribution. This chapter …

Living Standards, Labor Markets And Human Resources In Taiwan, Gary S. Fields

Gary S Fields

[Excerpt] This paper has three general aims: to demonstrate that standards of living have continued to improve during Taiwan's recent economic growth, to analyze the causes of improvements in the 1980s and before, and to discuss some specific issues which are likely to arise and which will need to be resolved in the years ahead.

The Migration Transition In Asia, Gary S. Fields

Gary S Fields

[Excerpt] This theoretical discussion of the migration transition is Asia develops a framework to understand the turning point from labor exporter to labor importer experienced by the Asian NIEs (Hong Kong, Korea, Singapore and Taiwan). The author concludes that the NIEs' demand for labor curve shifted rapidly, primarily due to export-led growth of a labor-intensive character. Because these economies are well integrated, improvements in labor market conditions in individual sectors are transmitted to all workers, discouraging emigration. Despite industry's efforts to mitigate wage increases through labor import, new technology or relocation overseas, the rapidly improving domestic earnings opportunities induced the …

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, …

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 …