Inter-Generational Effects of Titling Programmes: Physical vs. Human Capital

Programmes aimed at giving legal ownership titles to the occupants of land (‘titling programmes’) are associated with an income (or wealth) effect that induce higher expenditure on normal goods like education and health services. There is also a substitution effect: the elimination of expropriation risk makes home investment more attractive and increases the ‘opportunity cost’ of other forms of spending. The net effect on human capital is ambiguous. Using data from a natural experiment in Uruguay we find that titling favours home investment to the detriment of some dimensions of human capital investment for children of 16 and under.     

In the Same Boat,but not Equals: The Heterogeneous Effects of Parental Income on Child Labour

This paper examines the impact of parental income on child labour. The empirical literature has found conflicting results regarding whether poverty leads parents to send their children to work. Most of this literature, however, treats child labourers as a single homogeneous group, ignoring differences among working children in work intensity, hazard exposure, and type of employer. This paper argues that accounting for the heterogeneity in child’s working conditions may explain the conflicting results in the literature. Specifically, the existence of this heterogeneity may reflect heterogeneity in parents’ perceptions about the returns to child’s work, and hence in parental reasons to send their children to work. To test this hypothesis, I estimate the effects of parental income on child labour for various working conditions, using data from the 2010 Egypt National Child Labour Survey. This dataset provides rich information on the working conditions of child labourers. The findings show that the effect of parental income on child labour is minimal among children who work in non-hazardous jobs, jobs that are not highly physical, or in family businesses. In contrast, higher parental income does decrease the likelihood of child labour in market work, jobs that are physical and hazardous jobs.     

Social Capital,Human Capital and the Community Mechanism: Toward a Conceptual Framework for Economists

For facilitating the development of a consensus on the concept of social capital among economists, this paper proposes its operational definition in a way consistent with the definitions of physical and human capital and discusses the relevance on the use of the metaphor of capital for social capital. Further, the unique characteristics in the production and accumulation of social capital in comparison with physical and human capital are identified in relation with the community which is considered the central mechanism to produce social capital. The merits and drawbacks of the community relative to the market and the state are examined with the aim of identifying the conditions under which social capital can be supplied efficiently in the direction of promoting economic progress.     

Challenging Global Neoliberalism? The global political economy of China's capital controls

This article engages with critical ipe scholars who have examined the rise of China and its impact on the neoliberal world order by analysing whether China poses a challenge to the neoliberal norm of free movement of capital. We argue that China's capital control regime is marked by a contradiction between its domestic social relations of production and its global geo-economic ambitions. On one hand, the key raison d'être of China's capital controls is to protect and consolidate an investment-led accumulation regime that redistributes income and wealth from Chinese workers to its state-owned enterprise sector. Dismantling these controls would result in changing social relations of production that would not necessarily benefit Chinese industrial and financial capital. On the other hand, China's accumulation regime has found itself increasingly constrained by the dynamics of US monetary hegemony, making the contestation of US structural monetary power a key global geo-economic ambition of China's ruling elites. In this regard, China would have to challenge the dominance of the US dollar by promoting the international role of the renminbi and developing liquid financial markets. Since it would have to abolish its capital controls in order to achieve this, there is a plain contradiction between its domestic and global objectives. A good understanding of this contradiction is necessary in order to be able to assess whether China will be capable of challenging the neoliberal world order in general and the norm of free movement of capital in particular.     

Uncertainty,risk, and wealth and income distribution in peasant agriculture

An ethical justification of the market system is that while generating inequality of income distribution it nevertheless provides an equal opportunity for people to improve their material well‐being (1, p. 169). It is argued that the market system creates a society of unequals, but that it is a fluid society in which, though all may not improve absolutely and relatively, the opportunity to do so is randomly distributed through the population. In terms of economic development, this implies that within a free market framework, the distribution of the gains from growth need not be biased towards any economic class. To use a cliche, one of the justifications of a competitive market system is that there is nothing inherent in its operation which makes ‘the rich get richer and the poor get poorer’. The main barriers to economic and social mobility are thus treated as imperfections in the market—racial and ethnic discrimination, differential access to capital markets, traditional constraints on job choice, and so on.

Recently Michael Lipton has suggested an analytical framework for explaining the optimizing behaviour of peasant cultivators which challenges this sanguine view (2). His ‘survival algorithm’ implies that inherent in the market organization of economic society is a tendency for the benefits from economic development to be distributed systematically in favour of the wealthier groups in the society.

In the following section I shall summarize Lipton's hypothesis and demonstrate its implications for the distribution of wealth and income over time in the agricultural sector of developing countries. In Section III policy conclusions of the analysis are presented.     

Weather Shocks,Agricultural Production and Migration: Evidence from Tanzania

We analyse whether Tanzanian rural households engage in internal migration as a response to weather-related shocks. We hypothesise that, when exposed to such shocks and a consecutive crop yield reduction, rural households use migration as a risk management strategy. Our findings confirm that for an average household, a 1 per cent reduction in agricultural income induced by weather shock increases the probability of migration by 13 percentage points on average within the following year. However, this effect is significant only for households in the middle of wealth distribution, suggesting that the choice of migration as an adaptation strategy depends on initial endowment. What is more, the proposed mechanism applies to households whose income is highly dependent on agriculture, but is not important for diversified livelihoods.     

Russia's missing link? Social capital,entrepreneurialism, and economic performance in post-communist Russia

This paper argues that there is a spurious correlation between social capital and economic development in the regions of post-communist Russia. This argument rejects Robert Putnam's collectivist hypothesis that social capital is the ubiquitous cause of economic growth. Rather, the data presented in this paper indicates that individualistic behavior in the form of entrepreneurialism, has been the prerequisite for growth in post-communist Russia. While social capital may slow or accelerate economic growth, it will not cause it. Without entrepreneurialism, social capital cannot be harnessed for economic development. In essence, social capital does not create wealth, entrepreneurs do.     

Does Oil Hinder Social Spending? Evidence from Dictatorships, 1972–2008

This paper examines the effects of natural resource abundance on social spending in dictatorships. Natural resources, particularly oil, provide authoritarian leaders with economic rents without widescale labor force participation. I argue that dependence on natural resource production thus reduces dictators’ incentive to invest in human capital, which is reflected in lower levels of social spending. Using a panel dataset of authoritarian regimes between 1972 and 2008, I find that oil abundance leads to significantly lower levels of social spending by authoritarian governments. The negative effects are especially prominent concerning expenditures for public education and health: when an authoritarian country earns ten more dollars per capita from oil production, per capita spending on education and health decreases by approximately 1%. Extended analysis shows that the negative impact of oil on social spending is peculiar to authoritarian regimes; no impact of oil wealth on social expenditures is found among democracies.     

Higher education and economic growth in Africa

This paper uses panel data over the 1960–2000 period, a modified neoclassical growth equation, and a dynamic panel estimator to investigate the effect of higher education human capital on economic growth in African countries. We find that all levels of education human capital, including higher education human capital, have positive and statistically significant effect on the growth rate of per capita income in African counties. Our result differs from those of earlier research that find no significant relationship between higher education human capital and income growth. We estimate the growth elasticity of higher education human capital to be about 0.09, an estimate that is twice as large as the growth impact of physical capital investment. While this is likely to be an overestimate of the growth impact of higher education, it is robust to different specifications and points to the need for African countries to effectively use higher education human capital in growth policies.     

Shifting the Risk: New Employment Patterns, Informalization, and Women's Work

The paper argues that the processes of informalization of jobs observed during the past decades have affected both high and low income countries. Starting at the micro level of the firm, the emphasis is on how economic restructuring and globalization have generated the growth of informal activities—resulting in the vicious circle of poverty and economic insecurity for an important proportion of the population. The second part of the paper analyzes the growth of women's participation in informal activities, emphasizing that there are contradictory forces at work regarding women's employment. Despite a stubborn persistence of gender discrimination and obstacles to women's advancement, progress has taken place on several fronts, such as in the education field and in the absorption of female labor in many production processes. The paper concludes by pointing out that poverty eradication programs must emphasize the need to generate decent jobs without which these programs will continue to be ineffective. In addition, re-distributive mechanisms and different forms of social protection are needed to counteract the forces and policies generating economic insecurity.     

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.     

Educational human capital and levels of income: Evidence from states in India, 1965 – 92

Abstract

This paper examines the long-run (steady-state) relationship between levels of educational human capital and levels of income for the 15 major states of India between 1965 and 1992. The relationship is estimated using the Pooled Mean Groups (PMG) technique; which produces common long-run coefficients but allows heterogeneity of the short-run adjustment parameters. The results suggest that levels of educational human capital, proxied by high school enrollment rates, have a robust positive impact on steady-state levels of income. This is true for male and female education, and the regressions also suggest that states which have larger gender-gaps in education have lower steady-state incomes. The estimated relationship is robust to the inclusion of alternative measures, added controls, and variation in the degree of state coverage.     

Social Capital,Civic Engagement,and Economics in a Transitioning Economy: The Case of Vietnam Provinces

Social capitalist assert that civic engagement and participation yield significant economic gains for a county but, generally focus on democratic governed societies. The objective of this research is to determine if social capital transitions to Vietnam, a single-party governed country. This analysis first identifies factors that impact civic engagement and participation. Then it analyzes the relationship between civic engagement, participation, and economics. Using the 2012 Provincial Governance and Public Administration Performance Index, we find human capital is a stronger predictor of economics in Vietnam. We conclude by offering policy implications for understanding social capital in single-party, transitioning economy countries.     

Public Employment: Attractiveness,Representativeness, and Performance

The functions of the public sector penetrate almost all aspects of social life. Considering the tremendous implications that government employment holds for economic health and other aspects, it is understandable that the processes controlling entry to these jobs are subject to widespread concern. Democratic norms call for a representative bureaucracy. The large size and increasingly mono-ethnic of the Malaysian civil service have caused concern for some time. This study suggests that job characteristics, some background and personal characteristics are significant determinants of graduating students’ job choice. The study also demonstrates how representative bureaucracy would affect performance of the public sector.     

Attitudes toward immigrants and immigration policy in Asia and the Pacific: a quantitative assessment of current theoretical models beyond western countries

This article empirically assesses the validity of current theoretical models of attitudes toward immigrants and immigration policy in the Asia-Pacific region. This paper takes representative data from the World Values Survey and implements a multilevel model to test five of the main theories in the literature: the human capital theory, the social capital theory, the political orientation theory, the contact/group threat theory and the economic competition theory. The results from the analysis lend credence to the important effects of human capital, social capital and political-ideological variables on respondents’ attitudes toward immigrants and immigration policy. However, the results provide mixed and weak evidence for the contact/group threat theory and the role of economic determinants. Importantly, economic determinants tend to be more powerful in shaping people's attitudes toward immigration policy than shaping attitudes toward immigrants as people. Altogether, this article sheds new light on the validity of current theoretical models based on western countries for other areas of the world. Finally, the results from the paper also support the usefulness of non-economic, as opposed to purely economic, models in the understanding of individuals’ attitudes toward immigrants and immigration policy in the Asia-Pacific region.     

Regional Returns to Education,Child Labour and Schooling in India

We offer evidence from India that higher regional returns to primary education not only increase the likelihood that boys and girls attend school but also decrease the likelihood that they work. These relationships hold only for the top three quintiles of the income distribution and mostly for children in the age group 10–14 years. The former result suggests that liquidity constraints may not allow poorer households to respond to the economic benefits of education. Policies that raise the economic benefits of education may increase human capital investments in households that do not rely on their children's incomes for survival. However, low schooling and high child labour will persist among credit constrained families unless these households are provided with the economic ability to respond to these benefits.     

‘My Neighbour Drinks Clean Water,While I Continue To Suffer’: An Analysis of the Intra-Community Impacts of a Rural Water Supply Project in Mozambique

Rural water planners assume the positive impacts of community water projects are spread evenly across the population. We test this assumption by looking at the distribution of benefits within communities that received handpumps in rural Mozambique. Using survey and qualitative data we analyse the characteristics of those groups who benefited from the handpumps and also explore household decision-making processes. Handpump use was determined by distance, availability of other sources, perceptions of water quality, political affiliation, and wealth. We argue that the handpumps reinforced existing social divisions related to income and political affiliation and created new geographic divisions within communities.     

Credit access,human capital and class structure mobility

This article examines the impact of microenterprise credit programmes on class structure mobility in developing countries. It develops a model that endogenously generates an eight‐fold class structure. Class membership is determined by optimal choice of labour activity, which is a function of access to credit and human capital endowments. Predictions from the model suggest that better access to credit will foster upward class mobility among self‐employed entrepreneurs, and that this upward class mobility will be accentuated among entrepreneurs with high levels of human capital. Theoretical predictions from the model are compared with data on class structure mobility collected first‐hand in western Guatemala. Empirical results show that upward class structure mobility increases substantially with access to credit, and also suggest that the combined effect of innate entrepreneurial ability and credit access has a greater impact on upward class structure mobility than the interaction between formal schooling and credit access.     

Restructuring,Reconsidering, Reconstructing: Implications for Health Human Resources

Abstract

In the 1990s, many health care organizations adopted restructuring strategies that were inappropriate to an industry in which the effective use of workers' knowledge, skills and social relations was essential to productivity. Workforce cuts and the withdrawal of workplace supports without sufficient consideration of human consequences led to a demoralized and short‐staffed workforce rather than cost containment. This paper uses two neo‐capitalist perspectives to illustrate the impact of restructuring initiatives on nursing, the most numerous health care profession. It describes how reconsideration of strategies adopted during restructuring has led to a search for new approaches to institutional change that make optimum use of human and social capital.