The Economics of Labor Coercion Acemoglu, Daron; Wolitzky, Alexander
Econometrica,
March 2011, Volume:
79, Issue:
2
Journal Article
Peer reviewed
Open access
The majority of labor transactions throughout much of history and a significant fraction of such transactions in many developing countries today are "coercive," in the sense that force or the threat ...of force plays a central role in convincing workers to accept employment or its terms. We propose a tractable principal-agent model of coercion, based on the idea that coercive activities by employers, or "guns," affect the participation constraint of workers. We show that coercion and effort are complements, so that coercion increases effort, but coercion always reduces utilitarian social welfare. Better outside options for workers reduce coercion because of the complementarity between coercion and effort: workers with a better outside option exert lower effort in equilibrium and thus are coerced less. Greater demand for labor increases coercion because it increases equilibrium effort. We investigate the interaction between outside options, market prices, and other economic variables by embedding the (coercive) principal-agent relationship in a general equilibrium setup, and studying when and how labor scarcity encourages coercion. General (market) equilibrium interactions working through the price of output lead to a positive relationship between labor scarcity and coercion along the lines of ideas suggested by Domar, while interactions those working through the outside option lead to a negative relationship similar to ideas advanced in neo-Malthusian historical analyses of the decline of feudalism. In net, a decline in available labor increases coercion in general equilibrium if and only if its direct (partial equilibrium) effect is to increase the price of output by more than it increases outside options. Our model also suggests that markets in slaves make slaves worse off, conditional on enslavement, and that coercion is more viable in industries that do not require relationship-specific investment by workers.
China’s economic success has been founded partly on relatively cheap labour, especially in the export industries. In recent years, however, there has been growing concern about wages and labour ...standards in China. This book examines how wages are bargained, fought over and determined in China, by exploring how the pattern of labour conflict has changed over time since the 1970s. It focuses in particular on the city of Shenzhen where labour conflict and workers’ protests have been especially prevalent. This book includes a detailed account of the transformation of labour relations and labour policy in China more broadly during 2004 to 2009, a period when there have been significant changes in the labour market, labour regulation and labour relations. The author argues that these recent developments have brought to the fore the class basis of workers’ protest in China and have thoroughly undermined the post-Marxist analysis of identity politics. The book makes an invaluable contribution to studies on industry and labour, as well as Chinese studies.
"Chris King-Chi Chan’s book is a particularly well-informed work of scholarship on the process of working-class formation among rural migrant workers in Shenzhen... should prove invaluable both for scholars versed in the study of contemporary China and for those interested in labour politics and urban change in transitional societies." - Eric Florence, Centre for Ethnic and Migration Studies, University of Liege, Belgium; Local Economy, 26(5)
"Why do workers go on strike? How are the strikes organized? How do the strikes affect employers, workers and the government? And what are the implications of the strikes for the future of workers and labour movement in China? In this highly original book, Chris King-Chi Chan answers these questions based on intensive field research in Shenzhen and reveals an emerging picture of ‘class struggle without class organization’ in China. This is a timely and welcome contribution to the field of China labour studies... Chan should be applauded for providing us with valuable insights into workers’ struggles in China. This excellent ethnography study is a must-read for anyone who is interested in Chinese labour issues." - Mingwei Liu, Rutgers University; British Journal of Industrial Relations, 50:1 March 2012
"Chris Chan provides an amazing variety of first-hand information giving detailed insights into the working conditions, discourses and struggles of migrant workers in China’s first Special Economic Zone, Shenzhen." - Günter Schucher, GIGA Institute of Asian Studies, Hamburg; THE CHINA JOURNAL, No. 67
"This book’s rich documentation of a transformative moment in labour relations makes it a valuable addition to the study of labour in China." - Mark W. Frazier; The China Quarterly, 207, September 2011
1. Introduction: Globalisation and Chinese Migrant Workers 2. Labour Conflict in Shen Zhen: a Historical Review 3. Community and Shop Floor Culture: a Prelude to Workers' Protests 4. Strikes and Changing Power Relations in the Workplace 5. Workplace Conflict, Legal Institution, and Labour Regime 6. International Civil Society, Chinese Trade Unionism, and Workplace Representation 7. Conclusion: Workers' Struggle and the Changing Regime in China
Chris King-Chi Chan is an Assistant Professor in the Department of Applied Social Science at the City University of Hong Kong, and is an active member of labour NGOs in Hong Kong and on mainland China. He gained his PhD at the University of Warwick, UK, and previously worked as a trade union organiser in Hong Kong.
This is a unique account of working-class childhood during the British industrial revolution, first published in 2010. Using more than 600 autobiographies written by working men of the eighteenth and ...nineteenth centuries Jane Humphries illuminates working-class childhood in contexts untouched by conventional sources and facilitates estimates of age at starting work, social mobility, the extent of apprenticeship and the duration of schooling. The classic era of industrialisation, 1790–1850, apparently saw an upsurge in child labour. While the memoirs implicate mechanisation and the division of labour in this increase, they also show that fatherlessness and large subsets, common in these turbulent, high-mortality and high-fertility times, often cast children as partners and supports for mothers struggling to hold families together. The book offers unprecedented insights into child labour, family life, careers and schooling. Its images of suffering, stoicism and occasional childish pleasures put the humanity back into economic history and the trauma back into the industrial revolution.
We show that the effects of taxes on labor supply are shaped by interactions between adjustment costs for workers and hours constraints set by firms. We develop a model in which firms post job offers ...characterized by an hours requirement and workers pay search costs to find jobs. We present evidence supporting three predictions of this model by analyzing bunching at kinks using Danish tax records. First, larger kinks generate larger taxable income elasticities. Second, kinks that apply to a larger group of workers generate larger elasticities. Third, the distribution of job offers is tailored to match workers' aggregate tax preferences in equilibrium. Our results suggest that macro elasticities may be substantially larger than the estimates obtained using standard microeconometric methods.
"One of the most dramatic economic transformations of the past century has been the entry of women into the labor force. While many theories explain why this change took place, we investigate the ...process of transition itself. We argue that local information transmission generates changes in participation that are geographically heterogeneous, locally correlated, and smooth in the aggregate, just like those observed in our data. In our model, women learn about the effects of maternal employment on children by observing nearby employed women. When few women participate in the labor force, data are scarce and participation rises slowly. As information accumulates in some regions, the effects of maternal employment become less uncertain and more women in that region participate. Learning accelerates, labor force participation rises faster, and regional participation rates diverge. Eventually, information diffuses throughout the economy, beliefs converge to the truth, participation flattens out, and regions become more similar again. To investigate the empirical relevance of our theory, we use a new county-level data set to compare our calibrated model to the time series and geographic patterns of participation." (Author's abstract, IAB-Doku). Die Untersuchung enthält quantitative Daten. Forschungsmethode: empirisch-quantitativ; empirisch; Längsschnitt; historisch. Die Untersuchung bezieht sich auf den Zeitraum 1940 bis 2005.
This book, the first in the new series Advances in Labour Studies, is an international and interdisciplinary response to the neoliberal ideologies that have shaped labour market regulation in recent ...decades. International in scope, it includes chapters on both advanced economies (Canada, Europe, United States) and the developing world (Brazil, China, Indonesia, Tanzania). Co-published with Palgrave Macmillan.
The new division of labor Levy, Frank; Murnane, Richard J
2004, 2012., 20121126, 2012, 2004-01-01, 20040101
eBook, Book
Die Autoren gehen von der Tatsache aus, dass sich die Situation auf dem Arbeitsmarkt in den letzten Jahren grundlegend verändert hat: Selbst nach einer Rezession werden die durch die Automatisierung ...oder die Verlagerung in Niedriglohnländer verloren gegangenen Arbeitsplätze nicht wieder entstehen. Analysiert werden die Einflüsse der Informationstechnik auf die Arbeitsplatzstruktur, insbesondere die Möglichkeiten der Problemlösung und Kommunikation. Es wird dabei die These abgeleitet, dass komplexe Kommunikation nach wie vor eine Domäne menschlichen Handels sein wird, und Computer auf diesem Gebiet keine Alternative darstellen. Die Gesellschaft muss sich auf diese Veränderungen einzustellen, indem eine Arbeitsteilung zwischen automatisierten Jobs und gut bezahlten und hochqualifizierten Arbeitsplätze akzeptiert und gestaltet wird. Arbeitsplätze, deren Schwerpunkt auf komplexen Problemlösungen sowie auf interpersonaler Kommunikation liegt, werden in großer Zahl entstehen. Die Untersuchung enthält quantitative Daten. Forschungsmethode: deskriptive Studie. (IAB).
This book explores the precarious margins of contemporary labour markets. Over the last few decades, there has been much discussion of a shift from full-time permanent jobs to higher levels of ...part-time and temporary employment and self-employment. Despite such attention, regulatory approaches have not adapted accordingly. Instead, in the absence of genuine alternatives, old regulatory models are applied to new labour market realities, leaving the most precarious forms of employment intact. The book places this disjuncture in historical context and focuses on its implications for those most likely to be at the margins, particularly women and migrant workers. Managing the Margins provides a rigorous analysis drawing on original qualitative and quantitative material. It innovates by analyzing the historical and contemporary interplay of employment norms, gender relations, and citizenship boundaries. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/management//toc.html
Historically, Canada has adopted immigration policies focused on admitting migrants who were expected to become citizens. A dramatic shift has occurred in recent years as the number of temporary ...labourers admitted to Canada has increased substantially. Legislated Inequality critically evaluates this radical development in Canadian immigration, arguing that it threatens to undermine Canada’s success as an immigrant nation. Assessing each of the four major temporary labour migration programs in Canada, contributors from a range of disciplines - including comparative political science, philosophy, and sociology - show how temporary migrants are posed to occupy a permanent yet marginal status in society and argue that Canada's temporary labour policy must undergo fundamental changes in order to support Canada's long held immigration goals. The difficult working conditions faced by migrant workers, as well as the economic and social dangers of relying on temporary migration to relieve labour shortages, are described in detail. Legislated Inequality provides an essential critical analysis of the failings of temporary labour migration programs in Canada and proposes tangible ways to improve the lives of labourers. Contributors include Abigail B. Bakan (Queen's University), Tom Carter (University of Manitoba), Sarah D'Aoust (University of Ottawa), Christina Gabriel (Carleton University), Jill Hanley (McGill University), Jenna Hennebry (Wilfrid Laurier University), Christine Hughes (Carleton University), Karen D. Hughes (University of Alberta), Jahhon Koo (McGill University), Patti Tamara Lenard (University of Ottawa), Laura Macdonald (Carleton University), Janet McLaughlin (Wilfrid Laurier University), Delphine Nakache (University of Ottawa), Jacqueline Oxman-Martinez (Université de Montréal), Kerry Priebisch (University of Guelph), André Rivard (University of Windsor), Nandita Sharma (University of Hawaii), Eric Shragge (Concordia University), Denise Spitzer (University of Ottawa), Daiva Stasuilus (Carleton University) Christine Straehle (University of Ottawa), Patricia Tomic (University of British Columbia, Okanagan), Sarah Torres (University of Ottawa), and Richard Trumper (University of British Columbia, Okanagan).
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