Social and Behavioral Sciences Commons^™

The Employment Problem In Korea, Gary S. Fields

Gary S Fields

What Korea has is not an "unemployment problem" but rather an "employment problem." The employment problem includes continued high unemployment, but it goes well beyond it, also encompassing falling labor earnings, rising poverty and inequality, disproportionate impacts on disadvantaged groups, informalisation of employment, increased job insecurity, and consequent social strains. This paper documents Korea's employment problem, characterizes the problem as deficient aggregate demand rather than frictional or structural unemployment, examines in some detail three of the most important elements of the social safety net (the Employment Insurance System, the Livelihood Protection Program, and public works), and considers four major ways …

Are African Workers Getting Ahead In The New South Africa? Evidence From Kwazulu-Natal, 1993-1998, Paul L. Cichello, Gary S. Fields, Murray Leibbrandt

Gary S Fields

[Excerpt] In this paper, we use the KIDS panel data to answer three questions about the ‘progress’ of African workers in this one province in post-apartheid South Africa. First, how have African workers progressed as a group? Secondly, which African workers have progressed the most, and by how much have they progressed? Thirdly, to what extent is the progress made by workers driven by transitions between employment and unemployment, or between informal and formal sector employment? We reach the following major findings. First, African workers in KwaZulu-Natal had quite diverse experiences, but experienced positive progress on average. Second, those who …

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

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 …

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 …

Economic And Demographic Aspects Of Taiwan's Rising Family Income Inequality, Gary S. Fields

Gary S Fields

[Excerpt] Since 1980, however, family income inequality in Taiwan has risen slowly but steadily. In this chapter, we apply decomposition methodologies devised by Fei and co-authors and by Shorrocks to Taiwan's Family Income and Expenditure Surveys to quantify the sources of Taiwan's rising family income inequality. Our principal finding is that labor income inequality accounts for more than 100 percent of the observed change— that is, household income inequality would have increased even more had not business income, property income and transfer income contributed to an equalization of incomes. However, the reason for this is not that individual earnings became …

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, …

What We Know (And Want To Know) About Earnings Mobility In Developing Countries, Gary S. Fields

Gary S Fields

[Excerpt] Some developing countries have experienced rapid economic growth, some slow economic growth, some no growth at all, and some economic decline. The traditional way of gauging the distributional consequences of economic growth, if in fact there was economic growth, is to use data from comparable cross sections to calculate various measures of (relative) inequality and (absolute) poverty. The very large literature on inequality and poverty will not be reviewed here. A newer approach in the development literature is to study the distributional consequences of economic growth (or non-growth) by using data for the same recipient units for two or …

Poverty And Low Earnings In The Developing World, Gary S. Fields

Gary S Fields

More than three billion people are poor by international standards, and essentially all are to be found in the low- and middle-income countries of Asia, Africa, and Latin America. The issues for understanding poverty in the developing world - among them, self-employment and household enterprises, agricultural work, casual employment, and informal work – differ from those in the developed world. Different policy issues predominate: stimulating economic growth, harnessing the energies of the private sector, increasing paid employment, and raising the returns to self-employment. This chapter details how the poorer half of the world’s people work and gives an overview of …

Household Income Dynamics: A Four Country Story, Gary S. Fields, Paul L. Cichello, Samuel Freije, Marta Menéndez, David Newhouse

Gary S Fields

[Excerpt] In this paper, we analyse the dynamics of household per capita incomes using longitudinal data from Indonesia, South Africa, Spain and Venezuela. We find that in all four countries reported initial income and job changes of the head are consistently the most important variables in accounting for income changes, overall and for initially poor households. We also find that changes in income are more important than changes in household size and that changes in labour earnings are more important than changes in other sources of household income.

Earnings And Employment Dynamics For Africans In Post-Apartheid South Africa: A Panel Study Of Kwazulu-Natal, Paul L. Cichello, Gary S. Fields, Murray Leibbrandt

Gary S Fields

[Excerpt] The labour market is central in determining individual and household well-being in South Africa. Therefore, an understanding of earnings and employment dynamics is a key policy issue. However, the absence of panel data has constrained empirical work addressing these issues. This paper makes use of a regional panel data set for KwaZulu-Natal to begin the study of earnings and employment dynamics. The authors find that, on average, working-aged Africans in KwaZulu-Natal experienced large gains in earnings during the period 1993–8. These gains were progressive in nature, with the highest quintile of 1993 earners and those originally employed in the …

A Brief Review Of The Literature On Earnings Mobility In Developing Countries, Gary Fields

Gary S Fields

[Excerpt] The literature on income and earnings mobility falls into three categories:

1. Macro mobility studies address the entire economy. They ask the question, how much income mobility and/or earnings mobility is there in the economy?
2. A second group of studies, micro mobility studies, examines patterns of income and earnings change over time for different individuals or groups. They ask the questions, which individuals or households experience movements of what magnitudes, and what are the correlates and determinants of these movements?
3. Within the micro mobility studies are a number of studies that look specifically at poverty dynamics …

U.S. Earnings Mobility: Comparing Survey-Based And Administrative-Based Estimates, Lisa M. Dragoset, Gary S. Fields

Gary S Fields

Earnings mobility has been studied both at the macro level (how much of a certain kind of mobility is there in the economy?) and at the micro level (what are the correlates of change in income or position?). Many empirical mobility studies provide estimates of the amount of mobility in a country over time and the correlates of individual mobility within the income distribution. While measurement error is recognized as potentially important at both these levels, very little is known about the degree to which earnings mobility estimates are affected by measurement error. In this paper, we use a new …

Income Mobility In Latin America, Gary S. Fields, Robert Duval Hernández, Samuel Freije Rodríguez, María Laura Sánchez Puerta

Gary S Fields

[Excerpt] In the last decades Latin American countries have experienced substantial macroeconomic instability. While the region as a whole experienced economic growth during most of the 1990’s and 2000’s, there were also years of stagnation as well as economic decline.

Earnings Mobility In Argentina, Mexico, And Venezuela: Testing The Divergence Of Earnings And The Symmetry Of Mobility Hypotheses, Gary S. Fields, Robert Duval Hernández, Samuel Freije Rodríguez, María Laura Sánchez Puerta

Gary S Fields

This paper examines changes in individual earnings during positive and negative growth periods in three Latin American economies: Argentina, Mexico, and Venezuela. We ask whether those individuals who start in the best economic position are those who experience the largest earnings gains or the smallest earnings losses; this is the “divergent mobility” hypothesis. We also compare periods of positive economic growth with those of negative economic growth, asking whether those groups of individuals that experience large positive earnings gains when the economy is growing are the same as those that experience large earnings losses when the economy is contracting; this …