Computer Adoption and Returns in Transition: Theory Appendix

Across nine transition economies, it is the young, educated, English-speaking workers with the best access to local telecommunications infrastructures that work with computers. These workers earn about 25% more than do workers of comparable observable skills who do not use computers. Controlling for likely simultaneity between computer use at work and labor market earnings makes the apparent returns to computer use disappear. These results are corroborated using Russian longitudinal data on earnings and computer use on the job. High costs of computer use in transition economies suppress wages that firms can pay their workers who use computers.sorting; computer adoption; Returns; earnings; technology; Eastern Europe; Central Asia

The pathophysiology of glucose intolerance in newly diagnosed, untreated T2DM

AimsThe two predominant pathophysiological defects resulting in glucose intolerance are beta-cell dysfunction and insulin insensitivity. This study aimed to re-examine beta-cell function and insulin sensitivity across a continuum from normal glucose tolerance (NGT) to early type 2 diabetes (T2DM) employing highly specific insulin, C-peptide and intact proinsulin assays.Materials and methodsA total of 104 persons with NGT, 85 with impaired glucose tolerance (IGT) and 554 with newly diagnosed T2DM were investigated. Following an overnight fast, all underwent a 4-h standardised mixed meal tolerance test (MTT), and on a second day, a sub-group underwent a frequently sampled insulin-modified intravenous glucose tolerance test (FSIVGTT) over a 3-h period. The participants were stratified according to fasting glucose and BMI for analysis.ResultsThe MTT revealed that increasing FPG was accompanied by progressively elevated and delayed postprandial glucose peaks. In parallel, following an initial compensatory increase in fasting and postprandial insulin responses there followed a progressive demise in overall beta-cell secretory capacity. FSIVGTT demonstrated a major reduction in the early insulin response to IV glucose in persons with IGT accompanied by a dramatic fall in insulin sensitivity. Beyond pre-diabetes, ever-increasing fasting and postprandial hyperglycaemia resulted predominantly from a progressively decreasing beta-cell secretory function.ConclusionThis study utilising improved assay technology re-affirms that beta-cell dysfunction is evident throughout the spectrum of glucose intolerance, whereas the predominant fall in insulin sensitivity occurs early in its evolution

The Poverty of States: Do State Tax Policies Affect State Labor Productivity?

There are substantial differences in output per worker across states that have persisted over time.� This study demonstrates that in the context of a neoclassical growth model, differences in marginal tax rates on income from capital investment, capital ownership, and consumption will lead to persistent differences in labor productivity across states.� These theoretical predictions are supported, using data on state marginal tax rates and output per worker over the 1977-2008 sample period.� Over that period, the mix of state tax policies has led to a reduction in labor productivity averaging almost 2.8% per year.� The implied adverse effect of tax distortions on labor productivity across states is substantial, varying from -1.6% in Nevada to -3.9% in New York.� On the other hand, government expenditure policies explain none of the variation in labor productivity across states or time.� Results allow rankings of state tax structures by their adverse impacts on productivity and by their efficiency at raising revenue relative to lost productivity.�labor productivity; sales tax; Property tax; income tax; corporate tax; capital gains tax; efficiency; workers’ compensation; unemployment insurance; growth