[Review of the book \u3ci\u3eRetirement Income Opportunities in an Aging America: Income Levels and Adequacy\u3c/i\u3e]

[Excerpt] The slant of this volume will not appeal to everyone. Consider the following: During the last twenty years, the elderly\u27s financial status has improved substantially. Today those who are over age 65 receive income from more sources and have greater financial independence than previous generations of elderly. . . . This report concludes that the elderly\u27s income levels and sources will continue to improve during the next twenty years or more (p. v). But what of the poverty that remains among the elderly, especially single individuals? What of the threat to real social security benefit levels? What of the erosion of unindexed private pension benefits by inflation? What of the omnipresent risk of a financially catastrophic illness or the need for nursing-home care, Medicare and Medicaid benefits notwithstanding? Yes, the elderly on the whole are better off, as the EBRI study tells us, but for large numbers of them, incomes are inadequate by any standard, and few have genuine financial security. The strength of this volume is that it offers enough facts and figures to support these less cheerful interpretations, too. The weakness is that the analytical foundations are vague and implicit

[Review of the book \u3ci\u3ePersonnel Economics\u3c/i\u3e]

[Excerpt] What is personnel economics? Despite its name (non-economists may be put off by the use of the word “personnel,” which was left behind by what is now called human resource management about a quarter century ago), personnel economics deals with issues of fundamental importance in the workplace. As the editors explain in the introduction, “The literature is distinguished from other parts of labour economics primarily by its focus on problems that are central to business.” Thus, personnel economics is economics, it is that part of economics that deals with workplace issues, and it is firmly grounded in labor economics. Whether you call it personnel economics, workplace economics, an economic approach to human resource management, or something else, the field is breaking exciting new ground, asking questions that simply were not asked when I and others of my academic generation were learning labor economics

Rural-Urban Migration, Urban Employment and Underemployment, and Job Search Activity in LDCs

[Excerpt] In this paper, we shall present a formal theoretical mode with which to analyze the equilibrium allocation of the labor force between labor markets. Our basic premise is that the same kinds of forces that explain the choices of workers between the rural and urban sectors can also explain their choices between one labor market and another within an urban area and are probably made simultaneously. The decision-makers -- be they individuals or family units are presumed to consider the various labor market opportunities available to them and to choose the one which maximizes their expected future income

Taiwan’s Changing Employment and Earnings Structure

[Excerpt] In its determined pursuit of economic development throughout the latter part of the twentieth century, Taiwan consistently succeeded in achieving growth rates that were amongst the highest in the world; however, in tandem with such growth, a number of significant changes also took place in the island\u27s labour market. This chapter begins by highlighting some of the most important of these aggregate changes, as follows: (i) the achievement, and subsequent maintenance of, essentially full employment; (ii) improvements in the overall mix of jobs, in particular, a steady reduction in the share of agricultural employment to total employment, a very important shift given that agriculture remains one of the lowest-paying sectors in the Taiwanese economy; (iii) a rise in the share of wage employees, and, in consequence, a fall in the share of own-account work and unpaid family work; this represents another important shift, since wage employees in Taiwan enjoy much higher standards of living than own-account workers and unpaid family workers; (iv) an increase in the share of professional positions and other high-level jobs; a further significant and valuable development, because these are quite clearly the best-paying jobs; (v) real improvements in the educational level of the labour force as a whole; and (vi) a rise in real earnings throughout every sector of the economy, with both male and female earnings having risen at the same pace, in both farm and non-farm households. In addition to all of these changes, real earnings across the entire Taiwanese economy have doubled every ten years, absolute poverty has fallen sharply and the Gini coefficient of individual earnings has remained essentially constant, indicating that income inequality remains strong (further details on all of the above developments are provided in the Appendix, Tables A2.1-A2.7). This chapter sets out to present brief analyses of the changes that have taken place in Taiwan between 1976 and 1993

A Public Lecture: Labour Markets and Economic Development

[Excerpt] I want to put forward three propositions to you based on decades of work in Asia, Latin America, and Africa. First, economic development can be (but need not be) a win-win-win situation - for businesses, for individuals and groups of individuals, and for governments and non- governmental organisations (NGOs). Second, the labour market can (but need not) serve as an effective mechanism for contributing to economic growth and for transmitting the gains from economic growth. And third, in both of these areas, whether a country experiences the more favorable set of outcomes or the less favorable ones reflects a) its choice of policies, which in turn can be influenced, for better or for worse, by b) how it specifies its economic development agenda

Interactions Between Trade Policy and Labor Market Policy and Their Effects on Development

[Excerpt] Studies of various countries show that those which have emphasized an export-led growth strategy have, in general, outperformed those which have followed an import substitution orientation. Accordingly, AID is currently focusing on export promotion as a means to stimulate economic growth and development. An effective export-led strategy requires an integrated overall policy setting. In particular, trade and foreign sector policies must be related to labor market policies. Because labor market policy might reinforce or nullify trade policy, and because labor market issues merit attention per se, AID has an interest in research on how trade policies and labor market policies interact to affect economic development. The research reported here -- primarily theoretical but also including one empirical study -- helps fill that need

A Brief Review of the Literature on Earnings Mobility in Developing Countries

[Excerpt] The literature on income and earnings mobility falls into three categories: 1. Macro mobility studies address the entire economy. They ask the question, how much income mobility and/or earnings mobility is there in the economy? 2. A second group of studies, micro mobility studies, examines patterns of income and earnings change over time for different individuals or groups. They ask the questions, which individuals or households experience movements of what magnitudes, and what are the correlates and determinants of these movements? 3. Within the micro mobility studies are a number of studies that look specifically at poverty dynamics. These studies ask the question, how many households move into and out of poverty within a certain time frame and what are the correlates and determinants of these movements? The current project asks the following questions about earnings mobility: * Who benefits the most from the growth process, and how much do they benefit? * Who is left behind or made more vulnerable? * Who is hurt when economic decline takes place and by how much (and who can withstand or even see income gains in such environments)? * What are the forces behind these changes and behind the experiences of different groups of individuals? Given these questions, this literature review focuses on studies of micro earnings mobility. This review excludes a number other literatures: studies that present transition matrices across income classes; studies of macro mobility; studies of poverty dynamics, which necessarily are based on data on household incomes from all sources and/or household consumption; studies that use pseudo-panels rather than true panels or retrospective data; and studies using data from one or a very small number of villages, cities, or occupational groups

[Review of the book \u3ci\u3eStudies of Urban Labour Market Behaviour in Developing Areas\u3c/i\u3e]

[Excerpt] In the 1970s social scientists from all disciplines became aware that an understanding of how labor markets function is central to determining who benefits from economic growth. Only a few researchers concerned with the economic development of Asia, Africa, and Latin America, however, have examined labor markets in any serious way. Hence, a compendium entitled Studies of Urban Labour Market Behavior in Developing Areas is particularly welcome

The Unemployment Effects of Minimum Wages

Analyses the effect of a minimum wage on unemployment. Using a model with covered and non‐covered sectors, comparative static analysis is performed with respect to the elasticity of demand for labour in the covered sector, the elasticity of the wage in the non‐covered sector with respect to the size of the non‐covered sector labour force, and the size of the minimum wage. It turns out, contrary to the existing literature, that for none of these parameters is the comparative static effect unidirectional

Poverty and Low Earnings in the Developing World

More than three billion people are poor by international standards, and essentially all are to be found in the low- and middle-income countries of Asia, Africa, and Latin America. The issues for understanding poverty in the developing world - among them, self-employment and household enterprises, agricultural work, casual employment, and informal work – differ from those in the developed world. Different policy issues predominate: stimulating economic growth, harnessing the energies of the private sector, increasing paid employment, and raising the returns to self-employment. This chapter details how the poorer half of the world’s people work and gives an overview of lessons from around the world on what has helped improve their earning opportunities. The chapter concludes with suggestions for future research