The Determinants of Gender Differences in Income in Trinidad and Tobago

The present study employs 1993 Continuous Sample Survey of the Population data for Trinidad and Tobago to investigate the causes of gender income differentials. The findings suggest that such differentials are not well explained by differences in levels of human capital and other measured factors valued by the labour market. This result is robust to the disaggregation of the data into African, Indian and Other ethnic groups thereby raising the possibility of gender discrimination. African and Indian women's incomes would increase by over 20 per cent with the returns to the measured factors of their male, ethnic counterparts. Women would benefit from having men's industry distribution of jobs, but not men's occupational distribution. African women appear to be significantly more disadvantaged relative to their male counterparts than are Indian or Other women.     

The Incidence of Visible Underemployment: Evidence for Trinidad and Tobago

This article presents an empirical analysis of the incidence of visible underemployment in Trinidad and Tobago. Visible underemployment consists of workers who work less than the normal duration of working hours but are willing and available to work more. We find that compared to other groups of the labour force the visibly underemployed tend to be less educated and are more likely to work in the private sector. We also find that their revealed behaviour is consistent with their desire for more hours. Only about 50 per cent of the visibly underemployed are able to find full-time employment within three months and little except firm size helps predict who will.     

Labour market discrimination against indigenous people in Peru

In this article, the component of the gross wage differential that can be explained by productivity‐enhancing attributes and that which is due to unexplained factors and labour market discrimination are empirically determined. Individual data from the 1991 Living Standards Measurements Survey of Peru are used to analyse labour market earnings and to decompose the gross earnings differential. A large portion of the indigenous/non‐indigenous wage gap is unexplained by human capital and other observable differences.     

AIDS costs in Trinidad and Tobago

This article examines the dramatic emergence of HIV/AIDS as a major public health problem in Trinidad and Tobago. While there were only eight registered cases of AIDS in 1983, by the beginning of 1992 Trinidad and Tobago had arrived at an incidence that put it in the 17th spot in the world, according to the World Health Organisation (WHO). The disease, which was first evinced among homosexuals, quickly spread to the heterosexual population. The cost of the disease, estimated in a human capital approach, has already made a dent on the GDP. Even the most conservative of projections suggests that the number of cases will rise by a factor of between four and five by the year 2000. Although there is little by way of comparative cost data on other diseases, AIDS/HIV, in all probability, could be very costly to the country. Ralph Henry received his B.A. at the University of the West Indies and his Ph.D. at the University of Alberta. He is currently senior lecturer and head of the Department of Economics at the University of the West Indies, Trinidad and specializes in human resource economics. Elizabeth Newton received her Bachelor and Master degrees at the Massachusetts Institute of Technology, Cambridge. She is currently a visiting scientist at the Caribbean Epidemiology Centre in Port of Spain, Trinidad. Her main research interests include biostatistics and infectious disease modelling.     

Do Smaller Firms Pay Less in the Caribbean? The Case of Trinidad and Tobago

This article constitutes the first study of the employer size wage effect for a Caribbean country, namely the Republic of Trinidad and Tobago. Using a rich micro-level data set we estimate the firm size wage premium in an empirical model of wage determination. Despite exploring a variety of theories, samples, estimation techniques and tests, we find that, consistent with the empirical literature, larger firms in Trinidad and Tobago pay higher wages than smaller firms, for equally productive workers.     

Changes in earnings inequality and labour market segmentation: Metropolitan Santiago 1969–78

Changes in earnings inequality are examined in this article through an eclectic approach allowing for differences in human capital earnings function by labour market segments. Several findings are of interest. The first are the components of earnings inequality changes, these being, in order of importance: changes in the within segments inequality, changes in the relative share of the informal sector segment, and changes in relative income between segments. Second, these changes are found to be the result of labour market liberalisation policies such as abolition of both minimum wages and labour turnover legislation in the formal sector, the promotion of self‐employed activities in the informal sector, and, the selective mobility pattern between segments.     

Natural Resources and Small Island Economies: Mauritius and Trinidad and Tobago

Abstract

Historically, small economies, especially resource-rich ones, underperformed on average relative to their larger counterparts. Small island economies appear still more disadvantaged due to remoteness from both markets and agglomeration economies. Yet a comparison of two small island economies with similar initial conditions other than their mineral endowment suggests that policy outweighs size, isolation and resource endowment in determining economic performance. Resource-poor Mauritius adopted an unfashionable policy of export manufacturing that systematically eliminated surplus labour, which drove economic diversification that sustained rapid GDP growth and political maturation. Like most resource-rich economies, Trinidad and Tobago pursued policies that absorbed rent too rapidly, which impeded diversification and created an illusory prosperity vulnerable to collapse.     

Labour Market Impacts of School Expenditure and Class Size: Evidence from China

This study is a first attempt to estimate the impact of school resources on students’ subsequent labour market earnings in China. Combining unprecedented school data from the early 1950s to the 1990s with household survey data in the 2000s, this paper documents that expenditure-per-pupil, a proxy measure of school resources (or quality) has a significant impact on the level of subsequent earnings through its influence on education returns. The positive effect calls for policy intervention aimed at improving education, to be based on the perceived economic return to the quantity as well as the quality components of education.     

Stature,Skills and Adult Life Outcomes: Evidence from Indonesia

We investigate the effect of height on earnings, occupational choices and a subjective measure of wellbeing among Indonesian men. We explore the extent to which height captures the effects of endowments set before entry in the labour market. Physical and cognitive skills, co-determined with stature early in life, do not explain much of the height earnings premium directly. Yet, human capital more broadly, including cognition, educational attainment and other factors related to childhood conditions, explains around half of the height premium and does so through occupational sorting. Indeed, taller workers tend to have more education, and educated workers tend to work in more lucrative occupations that require brain and social skills, not brawn. The unexplained share of the height earnings premium may reflect a specific role of stature on social interaction, labour market advantages or self-assurance. We also find a height premium in happiness, half of which simply accounts for the educational and earnings advantages of taller workers.     

Changes in human capital and earnings inequality: Recent evidence from Brazil 1

Abstract

This paper estimates changes in the rates of return to human capital across the earnings distribution using data from over a 10-year period for Brazil. It uses these estimates to simulate the separate impacts of changes in returns to skills and changes in the supply of skills on earnings inequality. Evidence points strongly to growing inequality in rates of return to education in Brazil. This finding suggests that recent macroeconomic and trade reforms have been of most benefit to the skilled rather than the unskilled. Supporting evidence points to an improved competitiveness in the labour market, with workers increasingly rewarded for productivity. However, although increases in returns to education are more pronounced at the top of the earnings distribution, this did not in practice led to increased inequality. This is because levels of education and other labour market-rewarded endowments have increased and offset the rate of return effect. Appropriate education policy is therefore an essential partner for macroeconomic and trade reform if a developing economy is to avoid worsening income inequality.     

Education,Employment and Earnings of Secondary School and University Leavers in Tanzania: Evidence from a Tracer Study

This study uses a tracer survey of secondary school completers in Tanzania to analyse the impact of educational qualifications on labour market earnings. We show that the rates of return to the highest educational qualifications for wage employees are not negligible and, at the margin, provide an investment incentive. However, we find little evidence of human capital effects in the earnings determination process for the self-employment sector. Introducing controls for father's educational background and a set of school fixed effects designed to proxy for school quality and potential labour market network effects reduces the estimated rates of return to educational qualifications. A comparison of our results with the available evidence from other countries in the region suggest that, despite an extremely small secondary and university education system, the private rates of return to education in the Tanzanian wage employment sector are comparatively low.     

Participation and Earnings of Older People in Argentina: Nice Work if You Can Get It?

The article explores the potential contribution of better labour market participation among older people in Argentina to address old age poverty and vulnerability. The acute financial crisis in 2001 led to a steep rise in poverty and renewed concerns over the deterioration of old age support. Broadly, two main strategies took shape: to strengthen pension provision for poorer and vulnerable older people, and to improve their labour market participation. Using data from a dedicated survey of older people, the article tests the feasibility and effectiveness of the second strategy through a detailed analysis of the labour market participation and earnings of older people in Argentina.     

Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis

We present a systematic review and meta-analysis of impact evaluations of active labour market programmes (ALMPs) in Latin America and the Caribbean (LAC). We extract 296 impact estimates from 51 programme evaluations to analyse the effects of participation on employment, earnings, hours worked, and formality. Our analysis finds that the probabilities of being employed and in formal employment are the labour market indicators most likely to be positively affected by ALMPs in LAC. Moreover, ALMPs are more successful among women and youth and when they are implemented during periods of economic expansion. Training programmes increase both formal employment and earnings; training is particularly effective when it is more intensive and when explicitly targeting poor individuals.     

Who Suffers the Penalty?: A Panel Data Analysis of Earnings Gaps in Vietnam

In spite of its predominant economic weight in developing countries, little is known about the informal sector earnings structure compared to that of the formal sector. Taking advantage of the rich VHLSS dataset in Vietnam, in particular its three wave panel data (2002, 2004, 2006), we assess the magnitude of various formal–informal earnings gaps while addressing heterogeneity at three different levels: the worker, the job (wage employment vs. self-employment) and the earnings distribution. We estimate fixed effects and quantile regressions to control for unobserved individual characteristics. Our results suggest that the informal sector earnings gap highly depends on the workers’ job status and on their relative position in the earnings distribution. Penalties may in some cases turn into premiums. By comparing our results with studies in other developing countries, we draw conclusions highlighting Vietnam’s labour market specificity.     

No Colonial Working Class,No Post-Colonial Development: a Comparative-Historical Analysis of Two Oil-Rich Countries

Development sociologists generally agree that states play a critical role in promoting, as well as in impeding, development. However, far less scholarly consensus exists on the precise historical processes that lead either to strong or to weak states. This paper investigates the factors that shape varied state capacities through a comparative-historical analysis of two similar countries with divergent development outcomes—Trinidad and Tobago and Gabon. In the 1960s, both countries had comparably large amounts of oil wealth, minimal state involvement in the economy, and low levels of development. In the 1970s, state capacity in Trinidad and Tobago dramatically increased and the country went on to achieve high levels of development. The Gabonese state, on the other hand, remained weak resulting in persistent low levels of development. This paper traces the divergence in state capacity to variations in working class mobilization, specifically the particular type of working class movements in each country and the political opportunity contexts. In doing so, this paper reveals new agents and contingencies producing state capacity that are not predominantly discussed in the contemporary development literature, and the meso-level mechanics by which these agents are successful or constrained in doing so.     

Who Benefits from Higher Education in Low- and Middle-Income Countries?

In this article, we investigate how higher education contributes to the employment and earnings of individuals in labour markets, and whether social origins play a role in the financial benefits from higher education. We focus on these questions in nine low- and middle-income countries: Armenia, Bolivia, Colombia, Georgia, Ghana, Kenya, Laos, Macedonia, and Vietnam. We use the recent Skills Towards Employability and Productivity (STEP) surveys of urban labour force participants to examine individuals’ educational attainment, labour market participation, and earnings. Using logistic regressions, we find that individuals from disadvantaged origins are less likely to obtain a higher education degree. We find that in most of these countries, individuals who have earned a higher education degree are significantly more likely to be in the labour force and find employment, and enjoy sizable earnings premia. The findings are fairly robust with regard to the samples of individuals examined, and the methods used to measure earnings premia. Finally, we find little evidence that the earnings premia from higher education vary by social origins or the likelihood of an individual completing a degree. These results suggest that the benefits from higher education are comparable for individuals from disadvantaged and advantaged social origins.     

The analysis of social interest rate in Trinidad and Tobago

In this article a Social Interest Rate (SIR) is derived for Trinidad and Tobago on the basis of an individualistic, independent and multi‐period consumption utility function. The component parameters of this rate are: a mortality‐based pure time discount rate, the growth rate of per capita real consumption and the elasticity of marginal utility of consumption. The final result is 6.2 per cent which is plausible and thus can be readily used by economic planners in various resource allocation policies in that country.     

Ownership or Competition? An Evaluation of the Effects of Privatization on Industrial Relations Institutions, Processes and Outcomes

This paper examines whether privatization and exposure to product market competition leads to changes in labour management and industrial relations. Three sets of propositions are examined: privatization will lead to lower changes in industrial relations institutions and processes; privatization will lead to lower average levels of remuneration relative to public sector firms; and privatization will lead to relatively higher levels of efficiency. In each instance it is hypothesized that competition will add to ownership effects. These propositions are examined drawing on data derived from the UK bus industry.     

Ownership or Competition? An Evaluation of the Effects of Privatization on Industrial Relations Institutions,Processes and Outcomes

This paper examines whether privatization and exposure to product market competition leads to changes in labour management and industrial relations. Three sets of propositions are examined: privatization will lead to lower changes in industrial relations institutions and processes; privatization will lead to lower average levels of remuneration relative to public sector firms; and privatization will lead to relatively higher levels of efficiency. In each instance it is hypothesized that competition will add to ownership effects. These propositions are examined drawing on data derived from the UK bus industry.     

Barking up the Wrong Tree? Measuring Gender Gaps in Firm’s Access to Finance

Abstract

The literature on gender-based discrimination in credit markets is recently expanding, but the results are not yet definitive and have not been generally agreed upon. This paper exploits a new dataset on Barbados, Jamaica, and Trinidad and Tobago, which provides detailed information about female ownership and management in firms for investigating the existence of a gender gap in access to finance. The evidence presented herein suggests that more precise measures of the gender composition of the firm show that women-led businesses are more likely to be financially constrained than other comparable firms.