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.     

Income distribution and socioeconomic mobility: A framework for analysis and planning

This paper analyses income distribution and socioeconomic mobility within a framework that: (1) incorporates a dynamic as well as a static view of equity, (2) includes the distribution of income by households or individuals and also by socioeconomic classes, and (3) explicitly includes the translation from the distribution by socioeconomic groups into the overall size distribution. The dynamic analysis makes use of a mobility matrix which is similar to the transition matrix in dynamic Markov analysis. A representative mobility matrix is presented which includes ten socioeconomic groups. Four categories of mobility are identified: (1) rural‐urban migration, (2) movements within the urban labour market, (3) movement through the educational system, and (4) capital formation and asset redistribution. Some numerical examples are given analysing development strategies combining high or low socioeconomic mobility with equalising or unequalising growth.     

A technology network for economic development

A technology delivery system designed to provide small and medium-sized businesses with improved access to technological resources for enhancing their productivity and competitiveness has been tested under controlled conditions in the southeastern United States. The demonstration project involved federal research laboratories, state universities, National Information Service and Economic Development Administration of the U.S. Department of Commerce, and technology users in the private sector. The results of the 18 month project are reported and assessed to identify the conditions for the establishment of a national technology network for small and medium sized firms.     

The Imperative for Building Value Reciprocity Between Society and City Hall: Implications for Local Government Ethics Building in Serbia and Montenegro

Beyond the role of providing public goods, local public organizations contribute to the governance process by influencing social inclusion and development (Brinkerhoff, 2008 Brinkerhoff, D. W. 2008. The State and international development management: Shifting tides, changing boundaries, and future directions. Public Administration Review, 68(6): 985–1001. [Crossref], [Web of Science ®] , [Google Scholar]). Democracy building needs citizen input and accountability to ensure legitimization by society. Using survey data from public managers in local governments in Serbia and Montenegro, this study provides an analysis of the state of ethical systems in local governments. Organizational law and order were found to be the primary ethical focus while ethical outcomes often neglect social needs. Conclusions reveal that clear linkages between society and local public organizations can establish sustainable ethical behavior among local government managers.     

The power few: experimental criminology and the reduction of harm

The promise of experimental criminology is finding ways to reduce harm from crime and injustice. The problem of experimental criminology is that so few experiments produce evidence of big effects from the interventions they test. One solution to this problem may be concentrating scarce resources for experiments on the “power few:” the small percentage of places, victims, offenders, police officers or other units in any distribution of crime or injustice which produces the greatest amount of harm. By increasing the homogeneity and base rates of the samples enrolled in each experiment, the power few hypothesis predicts increased statistical power to detect program effects. With greater investment of resources, and possibly less variant responses to greater dosages of intervention—especially interventions of support, as distinct from punishment—we may also increase our chances of finding politically acceptable interventions that will work.

William Friedman and Pearl Harbor

Pearl Harbor was a seminal event for pioneering American cryptographer William Friedman and the subject of an analysis he wrote after retiring from government in the mid-1950s. While Friedman’s conclusions are not particularly innovative, the way in which he arrives at them is and also accounts for how he and his contemporaries were both surprised and not surprised by the Japanese attack.