Impacts of Migration on Household Production Choices: Evidence from China

Abstract

The great migration from Chinese farms to cities during the past several decades ranks among the most economically consequential of modern population movements. We use a national sample of rice-producing Chinese households to examine the effects of that migration on agricultural production. Our assessment involves evaluating four alternative theories of labour market equilibrium in the framework of an expanded agricultural household model. Migration’s farm production impacts appear to be slight, not on account of farm labour market perfections or remittance-financed technological improvements, but by substituting a reduction in leisure and other low-return activities for lost labour.     

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.     

Wage Subsidy and Labour Market Flexibility in South Africa

Abstract

We use a general equilibrium model to analyse the employment effects and fiscal cost of a wage subsidy in South Africa. We capture the structural characteristics of the labour market with several labour categories and substitution possibilities, linking the economy-wide results to a micro-simulation model with occupational choice probabilities to investigate the poverty and distributional consequences. The employment impact depends greatly on the elasticities of substitution of factors of production, being very minimal if unskilled and skilled labour are complements in production. The impact is improved by supporting policies, but the gains remain modest if the labour market is rigid.     

The Impact of Trade Liberalisation on Household Welfare in a Developing Country with Imperfect Labour Markets

Abstract

I develop an empirical methodology to assess the distributional impact of trade-induced price shocks when labour markets are imperfect. The proposed methodology relates exogenous variations in prices to changes in household welfare using a separable agricultural household model that flexibly allows the data to determine the degree of labour market imperfections. Applying this approach to Vietnam, I investigate the impact of agriculture trade liberalisation between 1993 and 1998 on overall household welfare, measured using per capita household expenditure. I find that accounting for labour market imperfections results in welfare gains that are nearly four times larger than those found when assuming complete labour markets.     

Measuring Quality of Life in Spanish Municipalities

Abstract

Measuring quality of life in municipalities entails two empirical challenges. First, collecting a set of relevant indicators that can be compared across the municipalities in the sample. Secondly, using an appropriate aggregating tool in order to construct a synthetic index. This paper measures quality of life for the largest 237 Spanish municipalities using Value Efficiency Analysis (VEA) to derive comparative scores by combining the information contained in 19 partial indicators. VEA is a refinement of DEA (Data Envelopment Analysis) that imposes some consistency in the weights of the indicators used to construct the aggregate index. The indicators cover aspects related to consumption, social services, housing, transport, environment, labour market, health, culture and leisure, education and security. The results show that the Northern and Central regions in Spain attain the highest levels of quality of life, while the Southern regions report low living conditions. Education is the variable that requires the largest improvement in low performing municipalities, followed by health and culture facilities, pollution and crime. Population density, growth and ageing seem to relate positively to quality of life.     

The Moroccan system of labour institutions: a class-based perspective

Abstract

The relevance of workers’ mobilisations in the 2011 Arab uprisings and – more recently – in the Algerian movement for democracy and social justice has encouraged a renewed interest in labour–state relations in the region. This article presents a class-based perspective on labour institutions, taking Morocco as a case study. In contrast to institution-based approaches, this research argues that it is problematic to treat the trade unions as analytical proxies for the working class, because this heuristic move conceals how class struggles – from below and from above – can transcend and transform labour institutions. The article proposes a framework to study labour–state relations, highlighting the relative autonomy of union officials from workers and vice versa. In this way, it shows how, in the neoliberal phase, the Moroccan state increased inducements to the unions while decreasing those to the workers and maintaining significant constraints on workplace organising. To use a simplified formulation, the regime included the unions to exclude the workers. In such a context of low union representativeness, the dangers of reducing the working class to the trade unions emerge clearly.     

Do Changes in the Labour Market Take Families Out of Poverty? Determinants of Exiting Poverty in Brazilian Metropolitan Regions

Abstract

Using survival models, we test whether short-term changes in the labour market affect poverty duration. Data are from the Brazilian Monthly Employment Survey. Such a monthly dataset permits more accurate estimations of events than using annual data, but its panel follows households for a short period. Then methods that control for both right- and left-censoring should be used. The results are as follows: households with zero income are not those with the lowest chances of exiting; changes in aggregate unemployment do not affect poverty duration; and increasing wages in the informal sector has a negative effect on poverty duration.     

Statistical Tragedy in Africa? Evaluating the Data Base for African Economic Development

Abstract

Measurement is increasingly at the centre of debates in African economic development. Some remarkable upward revisions of GDP, which are signs of statistical systems improving, caused the declaration of a statistical tragedy in Africa. This special issue evaluates the database for African economic development with articles on the quality of the data on GDP, health and education, poverty, labour, agriculture and income distribution.     

Towards a conception of the systemic impact of China on late development

Abstract

The tremendous expansion of the Chinese economy since the turn of the century, especially in terms of its external dynamics, is of world-scale significance. It seems to justify the quest for appropriate conceptions of China’s systemic impact on late development worldwide. A large number of scholarly studies have coalesced to analyse two crucial aspects of the impact, namely: impact on the performance of industrialisation and the condition of labour in the developing world. This paper seeks to critically appraise and reinterpret the existing studies. The appraisal is not so much a critique but rather an attempt to appropriately position the studies in the systemic context. It is submitted that the existing studies’ focus on market competition, as the main form through which China’s impact manifests, needs to be complemented and underpinned by the more fundamental consideration of productive investment. In the direction of constructing a systemic conception, it is further submitted that the China impact can potentially serve as a countervailing force against the prevailing dynamics of the world economy under neoliberal globalisation – ie the rising predominance of speculative finance that tends to crowd out productive investment, thereby hampering industrialisation and worsening labour conditions in the developing world.     

Remittances and Working Poverty

Abstract

This article shows that the level and the predictability of remittances reduce working poverty in receiving economies through their effects on labour market dynamics. It takes advantage of the new cross-country dataset (ILO, KILM 7th edition) containing information on the share of individuals working for less than US$2 per day. To identify the main impacts, the article proposes a novel approach to deal with the endogeneity of remittances and migration. In addition, the results are robust to the possible error in measuring working poverty, to the potential attrition bias, and to the presence of various control variables.     

Automotive global value chains in Mexico: a mirage of development?

ABSTRACT

International monetary organisations argue the ‘developing countries’ should foster linkages to the world economy as a means to overcome backwardness. In this article we refute the narrative that Mexico has experienced industrial upgrading. Rather, industrial growth in Mexico over the last 40 years has been shaped by neoliberal economic policies which have turned the Mexican economy into an export-led manufacturing platform designed to supply the North American market, sustained by a precarious labour market. As a result, Mexico occupies the most labour-intensive and low value-added segments of regional production chains. To make this argument, we perform an in-depth analysis of the Mexican automotive industry, demonstrating that instead of being an engine for domestic industrial development, the auto industry has become a dominant economic sector through productive hyper-specialisation concentrated in the northern Mexican border states, a reliance on transnational capital, particularly from the United States, a disconnect with domestic markets, and the super-exploitation of labour.     

The Transition from Education to Employment Abroad: The Experiences of Young People from Poland

This article examines the subject of the transition from education to the labour market among young people moving directly from education in Poland to first jobs abroad. With free labour mobility in the European Union (EU), there are now more options for transitions into adulthood, including working abroad. This study uses mainly qualitative empirical material with some contextual quantitative data to examine the characteristics of young people who opted for a first job abroad, how they made their transitions from education to the foreign labour market, and the impact of their first jobs abroad on their subsequent occupational paths after returning home.     

Breaking up a partnership to build a competitive market in Denmark’s ambulance service: how can studies of contract reversals learn from the sociology of markets?

ABSTRACT

paper analyses a case of contract reversal in the market for ambulance services. The paper suggests that the sociology of markets-literature provides insights into market institutions of importance to relations between government and contractors that will benefit contracting out theory. Building on document analysis and interviews with 19 key stakeholders, it is demonstrated how a regional government in Denmark tried to wrestle the service provision from a long-time private provider and create a competitive market, only to discover that the implementation of the new contract was beset by obstacles largely stemming from informal norms in the market and attempts of the existing provider to hamper market entry for challenger firms. The result was a contract reversal: from private provision to government-provided service delivery. The paper contributes to the contracting out literature by providing a more elaborate understanding of the institutional conditions under which contract reversals can take place.     

Computer Usage and Labour Regulation in India's Retail Sector

Abstract

A recent survey of 1,948 retail stores in India conducted by the World Bank's Enterprise surveys shows that 19 per cent of all stores use computers. In the state of Kerala, the figure is as high as 40 per cent. Using this survey, we estimate the effect of computer usage on labour employment. Our findings show that this effect depends on the stringency of the underlying labour laws. Stricter labour laws magnify the labour displacing effect of computers significantly.     

Social Networks and Factor Markets: Panel Data Evidence from Ethiopia

We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use detailed longitudinal household survey data and employ fixed effects estimation approaches to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions. Our findings also hint that iddir networks may crowd-out borrowing from local moneylenders (locally referred as ‘Arata Abedari’), a relatively expensive credit source. These results suggest that non-market institutions can play crucial roles in facilitating market transactions.     

The impact of household income on child labour in urban Turkey

Abstract

The aim of this study is to investigate the determinants of child labour in urban Turkey with a special reference to low household income or poverty as one of its root causes. Studies done elsewhere have produced mixed results which necessitate the relationship to be studied at country-level. The data from urban Turkey indicate that children from poorer families stand at a higher risk of employment. This finding is confirmed using various measures of household material well-being. Simulation results have further pointed out that current interventions are not likely to produce a sizeable impact on the child labour problem.     

Antipoverty Transfers and Labour Market Outcomes: Regression Discontinuity Design Findings

The article estimates the impact of Familias en Acción, a human development conditional cash transfer programme, on adult labour market outcomes in urban areas in Colombia. Relying on a regression discontinuity design and a large panel dataset, the article finds significant, largely positive, but heterogeneous programme effects on labour market outcomes. The findings suggest that antipoverty transfers enable a re-allocation of household productive resources among participant households.     

Wheels within Wheels: Poverty,Power and Patronage in the Cambodian Migration System

Abstract

This article presents evidence for an adjusted and refocused systems theory of labour migration in Cambodia. Specifically, it seeks to highlight first, how migration in Cambodia may be understood as a multi-scalar phenomenon characterised by pragmatism and flexibility; secondly, it emphasises the undergirding role of traditional rural norms in shaping and mediating the systematic process of labour movement; and finally, it presents evidence concerning how these structures constitute a vessel of social change, not only from urban to rural, but also from the rural to urban. In this way, a picture is presented of Cambodian migration as an adaptable, but nevertheless highly patterned process which is rapidly reordering the Kingdom’s cities and villages alike.     

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.     

Public attitudes toward immigration policies in South Korea

ABSTRACT

This paper examines whether economic or socio-psychological concerns determine anti-immigration attitudes in South Korea, in an effort to address regional asymmetries in existing immigration studies. An analysis reveals that labour market competition and fiscal burden concerns do not affect anti-immigration attitudes, but xenophobia, the conceptual views of citizenship, and the expectation of the impact of immigration on the national economy determine anti-immigration attitudes, a result in keeping with existing studies of anti-immigration attitudes in European or North American countries. However, when policies have humanitarian dimensions, the ethno-cultural views of Korean identity tend to reduce anti-immigration attitudes, a finding that runs counter to the empirical results from studies in the Western context. In addition, multiculturalism appears to affect anti-immigration attitudes when measured in terms of general immigration policies, but not when specific immigration groups are referenced. I conclude by discussing the implications of these new findings.