Welfare Reform: What Have We Learned in Fifteen Years?

Synthesizes findings about the impact of the Temporary Assistance for Needy Families program on caseloads and family self-sufficiency, effective training and education strategies, and outcomes for families in moving from welfare to work

Industrial Relations System Transformation

This paper analyzes the concept of “transformation” that many allege has occurred recently in a wide variety of national industrial relations systems. After a summary of the debate, with particular reference to the contentious case of Germany, the authors attempt to develop a definition of industrial relations system transformation on the basis of biological analogies and, in particular, the “punctuated equilibrium” theory. They examine the cases of the United States, Sweden, South Africa, and New Zealand, and conclude that the application of the biological frameworks raises a set of fundamental questions that must be addressed in order for the debate over the existence of industrial relations transformation to move forward

Fading Corporatism: Israel\u27s Labor Law and Industrial Relations in Transition

[Excerpt] This book surveys Israeli labor law from 1920 to the present. The process of writing and publishing a book does not always conform to the pace of events, particularly when the subject matter is contemporary history. The book is therefore updated until the end of 2005. References to court cases and events that began before 2005 were updated at the end of 2006. However, no developments since that time have been integrated into the text. In my opinion, no such event undermines the central argument of the book; several reinforce it. Presenting a book in English that focuses on Israel\u27s labor law presents many editorial dilemmas. Moreover, the book\u27s claim is that Israeli law developed on the basis of continental European systems and is now adopting features of American law. Hence it is difficult to determine how to translate the law and how to convey a feel of the Israeli story. While providing a consistent method was the most important goal, I have also attempted to keep the book as simple and user-friendly as possible

Growth engines of the South? South Africa's, Brazil's and Turkey's market constellations in comparison

The world is experiencing its worst recession in 80 years. What started as US sub-prime financial turmoil has developed into the first global recession since the infamous 'Great Depression' of the early 1930s. However gloomy the perspectives for the very short term are, there will be a recovery eventually. South Africa, Brazil and Turkey (SABT) are among those countries that may be expected as emerging market economies (EME) not only to continue to converge towards per-capita income levels of highly developed nations but also to be the best candidates - next to China and India - of serving as the locomotives of world GDP- and trade growth after the depression. Of course, whether SABT are not merely potentially in a position to create a brighter future for their people and the world economy but can transform such potentials into reality, depends on economic governance pursued by governments and collective actors in these countries. Therefore, it appears interesting to inquire into the macroeconomic governance structures of SABT in order to assess their capabilities for enhancing growth and employment and to converge to the OECD average in the medium to long run. --market constellations,policy regimes,institutions,Post Keynesianism,comparative economic systems

Towards Linking Four Emerging Paradigms in Economic Theory—Regulationist, Institutionalist, Post-modernist, and Post-development

This paper is an epistemological attempt to synthesise four emerging paradigms in economic theory. These paradigms are the regulationist, the institutionalist, the post-modernist, and the post-development. Arguably, these are paradigms rather than models of behaviour because they each presents an analytical framework for examining different economic phenomena. We shall attempt to show that the four paradigms are useful, complementary, and can be symbiotically linked into a broader paradigm especially to examine the phenomenon of low growth in the region. If we use a modified Kuhnian (1970) model for paradigmatic shifts in a discipline, we can argue that there are three dominating, competing, normal paradigms in economic theory: neoclassical, Marxist, and development theory. In Kuhnian fashion, these three dominant paradigms are pressured by several crises of inability to explain phenomena. Many of these explanational crises are about Less Industrialised Countries (LICs), but increasingly these crises are also about the inability to explain change in the Industrialised Countries (ICs) and the Newly Industrialising Countries (NICs). One, these three paradigms have to explain the differential growth rates of economies. They have to explain the low growth of LICs relative to both the old NICs (Japan, South Korea, Taiwan, Singapore, and Hong Kong) and the new NICs (Malaysia, Indonesia, Thailand, and China). The collapse of the Soviet model also has to be explained. Two, these paradigms have to explain the coexistence of significant levels of poverty with affluence in the LIs, and NICs, and now emergent poverty in the ICs. Three, these paradigms also increasingly have to explain why in a country growth and distribution is biased in favour of particular ethnic and social groups, excluding others, fuelling ethnic and social conflicts within countries and across countries globally. Four, these paradigms have to establish whether the IC market-determined patterns of consumption demand can be satisfied globally.

Anticipations of the Crisis: On the Similarities Between Post Keynesian Economics and Regulation Theory

The purpose of this paper is to explore the similarities between Post Keynesian Economics (PKE) and Regulation Theory (RT). It is argued that, despite important differences between these traditions, the analytical contents of PKE and RT display broad similarities with respect to their treatments of the income-generating process, the crisis-prone nature of capitalism, and the institutional contingency of capitalist growth and development. This thesis is then exemplified and substantiated with reference to the 2007—2009 financial crisis and “Great Recession”. Specifically, it is shown that important strands of both PKE and RT characterize and were successful in anticipating the crisis as the result of the exhaustion of a financialized growth process.Post Keynesian Economics, Regulation Theory, Great Recession, financial crisis

Fiscal Rules and Composition Bias in OECD Countries

Using a sample of OECD countries, this paper finds that while fiscal rules succeeded in reducing total government expenditures and budget deficits in the medium term, they significantly affected the composition of government expenditure: the ratio of social transfers to government consumption declined. In contrast, we do not find a stable effect of fiscal rules on public investment. It is shown that the compositional shift against social transfers is beyond “from welfare to work” policies, which have been adopted by many OECD countries during the nineties. Our empirical examination reveals that the reduction of social transfers relative to government consumption did not occur in countries with strong legal protection to social rights.fiscal rules, government deficit, government expenditure, expenditures composition

Ponzi game in OLG model with endogenous growth and productive government spending

Barro's model is an AK model, and there cannot be dynamic inefficiency since the social yield of the capital is higher than the growth rate. But it may be that the private yield and thus the interest rate are lower than the growth rate. One can thus have a Ponzi game and the government can allow a permanent roll-over of debt and cut taxes. However we show that in this model since the capital is under-accumulated, playing a Ponzi game produces a crowding-out of capital and reduces the growth rate and welfare. The practical message of this article is that even when the interest rate is lower than the growth rate, the public debt is not a Pareto improvement when it generates a crowding-out of capital and reduces endogenous growth.Public debt, public spending, endogenous growth, Ponzi game