Economics Commons^™

Division Of Labor And The Economic Determinants Of Divorce, Virginia (Ginny) Shull '95

Honors Projects

The theme of the 1992 National Republican Convention rang out with such phrases as the "traditional family" and "family values," and many conservatives asserted that a return to these molds of the established institutions of marriage and family would be the solution to the societal ills America now faces. As the number of single parent households skyrocketed in the 1980's and more single-headed household incomes began to fall at or below the poverty line, America as a whole began to feel the economic burden of a booming population of families economically dependent on federal and state social programs.

Risk And College Majors, Dan Scholz '96

Honors Projects

When students choose a certain field of study in college, some opportunities are instantly forgone. Since different types of educations have varying degrees of forgone opportunities, risk is associated with educational choices. The extent to which these educational choices impose a risk on the individual is studied here. It is hypothesized that more technically oriented and job-specific type educations will have a higher risk than less restrictive liberal arts type educations. Using a large sample drawn from the National Longitudinal Survey of Labor Market Experience of Youth, this paper examines the presence and nature of risk across the different areas …

Income Inequality In Developing Countries, Baindu Banya '95

Honors Projects

Globally, it is reported that the top 1 percent of income recipients receive about 15 percent of worldwide income, and the top 5 percent receive 40 percent of all income. Meanwhile, the poorest 20 percent receive only 1 percent of the global income. This paper attempts to unlock the significant factors that affect income inequality. In 1963, Simon Kuznets derived the inverted U hypothesis from which he inferred that through the course of development, as per capita income increases, initially, income inequality will increase before it starts to improve. Hence he inferred that the trend of income inequality through a …

The Effects Of Exports And Their Composition On Growth In Developing Countries, Franklin N. Nnebe '94

Honors Projects

Trade has often been central to many significant issues raised in the development literature. The two that have probably been the most influential and contentious are concerned with the roles of exports and their composition, for growth in developing countries.

An Empirical Study Of Covered Interest Arbitrage: Marqins Durinq The European Monetary System Crisis Of 1992, Ossi Saarinen '94

Honors Projects

Interest parity in international financial markets exists when the interest rate differential between two counties is exactly offset by the forward exchange premium/discount. If at any moment the interest parity condition is not satisfied, traders can execute covered interest arbitrage. Covered interest arbitrage entails a series of four transactions in the currency and securities markets which results in a practically riskless profit. Although traditional economic theory predicts that the opportunities will be wiped out as individuals take advantage of the situation, covered interest. arbitrage margins (ClAMs) have been observed to exist over extended periods of time.

Investments In Human Capital And The Poverty Transition, John A. Deherrera '94

Honors Projects

In 1990, almost 34 million people were living below the government's official poverty level (Hoffman, p.395). That represents 13.5 percent of the total population, or more people than live in the state of California. Thus, it should be obvious that the plight of the poor is one which warrants serious concern on all levels -political, social, and economic. Unfortunately, the question of how to alleviate this dreadful problem is one that has long perplexed even the most brilliant of minds.

Educational Attainment: The Effects Of Socioeconomic Differences, Risa Kumazawa '94

Honors Projects

Educational attainment is a topic that has been discussed in both economics and sociology. Economic research has focused on the importance of socioeconomic factors, mainly race/ ethnic origins and poverty status (Wolfe, 1973; Hoffman, 1987; Krein & Beller, 1988; Kominski, 1990; Courtless, 1991). Research in sociology has also dealt with other important factors such as attitudes and influences of significant others (Sewell, 1971; Featherman, 1972; Hauser, 1973; Featherman, 1980; Velez, 1986). Little has been done to incorporate both types of research.While sociological research took important factors into account such as attitudes, many of the initial models were constructed for studying …

Women In Law--Equal Justice For All?, Barb Kube '94

Honors Projects

This study uses Dr. Barbara Bergmann's Model of Labor Market Overcrowding to test for gender discrimination in the legal profession. Bergmann's model suggests that stereotypes and society's perceptions about what is "normal" divide male and female lawyers into two separate labor markets such that 1) females are paid less than males and 2) male and female lawyers are segregated into different areas of practice--either by area of concentration or position within the firm. Two samples, one composed of 45 young lawyers and the other consisting of 400 lawyers (200 males and 260 females), are used to test these hypotheses. The …

Investment And Interest Rates In Ecuador During 1970-1990, Max Proano '94

Honors Projects

Today, several less developed countries are implementing liberal economic policies, such as privatization of state-own services, reduction and elimination of tariffs and trade barriers, creation of well-developed capital markets, and openness of the economy to foreign capital, among others. Their main purpose is to achieve rapid economic development, just as Mexico, Chile, and Argentina successfully have done recently. One of these countries is Ecuador, . where the new conservative government is implementing these policies. This study is motivated by the author's desire to determine how financial and monetary policy in Ecuador influence its economic development. In order to understand the …

Inflation In The European Community: A Study Before And After German Unification, Ann C. Chalstrom '94

Honors Projects

During the last half of the twentieth century, the global economy has been undergoing monumental change, as the world is dividing into three regional economic zones: the Pacific rim; North America.; and, the European Community (EC). Though it is important to analyze the relationships between these three economic players, it is also ~ecessary to study the relationships among the member nations of each bloc to determine the effect on the nations participating in the bloc as well as the activities of the single; unit. The tight economic relationship formed when several sovereign nations form a union, like the EC, has …

Race, Poverty, And Enlistment: Some Evidence From The National Longitudinal Survey Of Youth, Michael Seeborg

Scholarly Publications

This paper explores the determinants of enlistment for a large sample of male youth drawn from the National Longitudinal Survey of Youth. Logit results indicate that the probability of enlistment is directly related to minority and poverty status while controlling for ability and a number of other socioeconomic background variables. In addition, an analysis of poverty transitions show that a very large percentage of enlistees in the early 1980s who were living in poverty at age 17 were successful in escaping poverty by 1990. An important conclusion is that the military can serve as a mechanism of upward economic mobility …

The Integration Of Banking Systems In The Ec, Heidi M. Munson '94

Honors Projects

The European Conununity, (EC), is moving closer and closer to full economic integration. There is general agreement that the economic integration of these countries will have major sectoral and national impacts. One sector that will be affected is the banking sector. The banking sector, or the financial sector in general, is extremely important; the efficiency of that sector, in its role as intermediary, is crucial to the efficiency of the economy as a wnole.

The Political And Economic Feasibility Of An American Industrial Policy, Brian S. Driscoll '93

Honors Projects

An industrial policy is "any government measure that prevents or promotes changes in the structure of an economy." This paper provides an overview of the issue, by focusing on how government can encourage productivity growth in the economy.

By studying other countries we hope to learn how industrial policy might work in America. The obvious choice to model is Japan's Ministry of International Trade and Industry (MITI), but other countries, most notably the British and the French, have adopted certain policies as well. On the whole, while Japan has been most successful, MITI may have more credit than is due, …

Causes And Effects Of Welfare Dependency, Chris Bisaillon '93

Honors Projects

The effect of welfare on work incentives has been a hotly debated topic since its inception in 1935. My research project examines the work incentive effects of an important component of the welfare system, namely Aid to Families with Dependent Children. I have done this by analyzing data drawn from a massive database of 12,800 youths called the National Longitudinal Survey of Youth. I primarily use two theories for my analysis, the neoclassical theory of labor supply and the welfare-disincentive theory promoted by Charles Murray. These two theories allow me to formulate and test a number of hypotheses regarding the …

The Demand For Higher Education: A Cost/Benefit Analysis Of The Human Capitol Theory, Bruce T. Bennett '93

Honors Projects

I will attempt to identify the costs and benefits of the high school graduate using the National Longitudinal Survey of Youth as the database. The study will be cross-sectional using those respondents born in 1964 or 1965. Using this data, I will formulate and test a number of hypotheses concerning the personal characteristics such as innate ability, family background, and other socioeconomic variables affecting the decision to go to college. Furthermore, I will explore the possibility of structural differences occurring between four groups - black males, white males, black females, and white females - to see if family background and …

Tax Increment Financing: A Cost/Benefit Analysis For The State Of Illinois, James C. Joslin '93

Honors Projects

While there are many supporters of TIF, it is not without opposition. The highly respected Chicago Business letter, Crains, believes that "TIFs are one of the all time great economic development boondoggles in Illinois" (9/14/92). Many people also have the perception that 'TIF has been misused to finance 'sweetheart' deals with local developers at state expense" (Ayers 21). Whether this is true or not, there are clearly differences in the level of blight and deterioration among districts. Many argue that development would have occurred in some of these districts without the aid of TIF, and that these developments merely shift …

Foreign Direct Investment In Mexico, Yuet Wei Wan '93

Honors Projects

Over the last decade, Mexico's economy has been undergoing a series of exciting changes. In 1983, Mexico was still a highly inward-oriented economy with a government that was outspoken in its criticism of multinational cooperations. Today, Mexico ranks among the most outwardly-oriented developing economies of the world (Nunez 7). The present administration, under the leadership of President Salinas, has implemented significant changes aimed at liberalizing Mexico's policy towards foreign direct investment (FDI). The changes in Mexico's policy have been largely in response to the 1982 debt crisis and deteriorating economic conditions. This study deals with the way in which macro-economic …

The Impact Of Local Labor Markets On Black And White Family Structure, Michael Seeborg, Kristin Jaeger

Scholarly Publications

This study employs 1980 census data to determine how economic characteristics affect the incidence of female headed families in metropolitan areas. The study also attempts to determine if black family structure responds differently than white family structure to changes in the variables studied. It is found that changes in employment of men and women may have profound effects on family structure. Changes in the level of welfare support are also found to affect family structure. Black family structure is found to behave somewhat differently than white, thus lending support to Wilson's theory of the underclass.

Income And Poverty Across Smsas: A Two-Stage Analysis, Michael Seeborg, Robert Leekley

Scholarly Publications

No abstract provided.

Factors Influencing Employment In The U.S. Automobile Industry, Paul S. Davies '92

Honors Projects

During the 1980s, increased attention was paid by the united Auto Workers union and politicians to the U.S. automobile industry and the problems it was facing from Japanese competition. Now, with 1992 being a presidential election year, the candidates are continuing to draw attention to what they see as the problems of the U.S. auto industry. And this concern is not without reason. The share of the u.s. market held by the Big Three domestic producers (GM, Ford, and Chrysler), has decreased dramatically over the past three decades. As is shown in Figure 1, the market share of u.s. based …

Occupational Segregation By Gender: A Look At The Future, Brenda Weil '92

Honors Projects

The principle purpose of this paper is to determine the prospects of reducing occupational segregation between now and 2005. This will be accomplished by exploring the barriers to occupational integration and the rate at which non-traditional job opportunities for women will become available in the future.

The continuation of occupational segregation depends upon two things: whether or not these barriers are present and to what extent, and also upon the speed with which new jobs open up in traditionally male occupations and female occupations. If opportunities in male-dominated fields expand rapidly and/or jobs in female-dominated fields expand slowly, the prospects …

Toward A More Comprehensive Explanation Of Declining Black Male Youth Employment, Mark Israel '91

Honors Projects

By any standard, the employment position of black males has deteriorated dramatically over the last 25 years. The magnitude and duration of this decline have convinced policy makers and economists alike that serious concern is warranted. Between 1968 and 1988, for example, the employment position of black males, 16 to 19, fell nearly ten points, from just over 38 percent to 29 percent. This decline, which is similar to that in the 20 to 24 year old age group, is indicative of a crisis inside our nation's ghettos, where millions of black male youths are without work and not attending …

Racial Differences In Adult Labor Force Transition Trends, Michael Seeborg, Mark Israel

Scholarly Publications

No abstract provided.

The United States Postal Service: A Government Corporation Requiring Changes: Past, Present, Future, Brian Harper '90

Honors Projects

This project determines the cost of maintaining the postal service currently. It explores whether this cost is justifiable on the grounds of "binding the Nation together" or if these costs are "impairing the overall value of such service to the people". Whether these costs are viewed as reasons for continued postal deficits or seen as the need for radical changes in the structure and operation of the postal service (even to the point of creating a private corporation from it) will determine the future course of action in regard to it.

Estimating The Risk Of Third World Debt, Jane Chadesh '90

Honors Projects

In August 1982, Mexico announced that it was unable to meet its debt obligations then falling due. Since this announcement more than 40 countries have been forced to reschedule on debt owed to commercial banks. Commercial banks have been criticized for blindly providing the lesser developed countries (LDCs) more credit and exposing themselves to more and more risk. For example, six months prior to Mexico's announcement that it could not meet its debt obligations, Mexico had been granted 6.4 billion dollars in new loans to make a total of 84 billion dollars in loans that needed to be rescheduled. If …

The Unemployment Rates Of Men And Women: A Transition Probability Analysis, Michael Seeborg, Larry Deboer

Scholarly Publications

Women's unemployment rates were considerably higher than men's for many years, but during the 1980s this difference has virtually disappeared. This study is the first to examine that change through an analysis of trends in the probabilities of labor force transitions- movements between employment, unemployment, and nonparticipation in the labor force. Using BLS data, the authors find that about half of the narrowing of the unemployment rate differential during the 1968-85 period was due to the increasing labor force attachment of women and the decreasing attachment of men. The other half reflects changes in men's and women's tendencies to move …

A New Shopping Experience, Katherine D. Baffes

Honors Projects

The grocery business is in a constant state ot change. Even before the supermarket was called a grocery store, it was called the general store.

Measuring Inefficiencies Of Federal Acreage Reduction Programs, Julie Brewer

Honors Projects

No abstract provided.

Worker Ownership As A Means Of Reducing Regional Unemployment And Its Application To Steel Plant Shutdowns, Peter Berg

Honors Projects

In the 1950s, the American steel industry dominated the world in steel production. It was a strong and thriving sector of our national economy. Throughout the 1970s, however, the steel industry has been in sharp decline. Foreign competition, high labor costs, periodic recessions, and lack of modernization are some of the factors that have contributed to the industry's inability to produce steel in a competitive market. These developments in the steel industry have affected not only our national economy but also the lives of one million steelworkers. The ugly economic and social effects of. unemployment have caused hardship for many …

Toward A Fiscal Policy That Allows For Collective Wants, Lee Christie

Honors Projects

As economic development progressed and the role of government grew, economic analysis of the public sector became a major part of economic theory.