Immigration has been a steady force acting on population and employment within countries throughout human history. Focusing on the last four decades, we show that the mix of immigrants to rich ...countries has been, overall, rather balanced between college and non-college educated. The growth of immigration has been driven by immigrants from nonrich countries. The economic impact of immigration on receiving economies needs to be understood by analyzing the specific skills brought by immigrants. The complementarity and substitutability between immigrants and natives in employment, and the response of receiving economies in terms of specialization and technological choices, are important when considering the general equilibrium effects of immigration. In the United States, a balanced composition of immigrants between college and noncollege educated, together with the adjustment of demand and technology, imply that general equilibrium effects on relative and absolute wages have been small.
Informality Revisited Maloney, William F
World development,
07/2004, Letnik:
32, Številka:
7
Journal Article
Recenzirano
The paper draws on recent evidence––economic, sociological and anthropological––from Latin America to forward a view of the informal sector in developing countries primarily as an unregulated ...microentrepreneurial sector and not as a disadvantaged residual of segmented labor markets. It offers alternative explanations for many of the characteristics of the sector customarily regarded as evidence of its inferiority.
Marketplaces are often small parts of large markets, and both markets and marketplaces come in many varieties. Market design seeks to understand what marketplaces must accomplish to enable different ...kinds of markets. Marketplaces can have varying degrees of success, and there can be marketplace failures. I’ll discuss labor markets like the market for new economists, and also markets for new lawyers and doctors that have suffered from the unraveling of appointment dates to well before employment begins. Markets work best if they enjoy social support, but some markets are repugnant in the sense that some people think they should be banned, even though others want to participate in them. Laws banning such markets often contribute to the design of illegal black markets, and this raises new issues for market designers. I’ll briefly discuss markets and black markets for narcotics, marijuana, sex, and surrogacy, and the design of markets for kidney transplants, in the face of widespread laws against (and broader repugnance for) compensating organ donors. I conclude with open questions and engineering challenges.
We develop an equilibrium wage-posting model with heterogeneous firms that decide to locate in the formal or the informal sector and workers who search randomly on and off the job. We estimate the ...model on Brazilian labor force survey data. In equilibrium, firms of equal productivity locate in different sectors, a fact observed in the data. Wages are characterized by compensating differentials. We show that tightening enforcement does not increase unemployment and increases wages, total output, and welfare by enabling better allocation of workers to higher productivity jobs and improving competition in the formal labor market.
The Syrian Conflict generated forced immigration from northern Syria to southeastern Turkey. Arrival of refugees resembles a natural experiment, which offers good opportunities to study the economic ...impact of immigration. I study three main outcomes: labor markets, consumer prices, and housing rents. I document moderate employment losses among native informal workers, which suggests that they are partly substituted by refugees. Prices of the items produced in informal labor intensive sectors declined due to labor cost advantages generated by refugee inflows. Finally, refugee inflows increased the rents of higher quality housing units, while there is no effect on lower quality units.
The past several decades have seen widespread reform of labor markets across advanced industrial countries, but most of the existing research on job security, wage bargaining, and social protection ...is based on the experience of the United States and Western Europe. In Inequality in the Workplace , Jiyeoun Song focuses on South Korea and Japan, which have advanced labor market reform and confronted the rapid rise of a split in labor markets between protected regular workers and underprotected and underpaid nonregular workers. The two countries have implemented very different strategies in response to the pressure to increase labor market flexibility during economic downturns. Japanese policy makers, Song finds, have relaxed the rules and regulations governing employment and working conditions for part-time, temporary, and fixed-term contract employees while retaining extensive protections for full-time permanent workers. In Korea, by contrast, politicians have weakened employment protections for all categories of workers.
In her comprehensive survey of the politics of labor market reform in East Asia, Song argues that institutional features of the labor market shape the national trajectory of reform. More specifically, she shows how the institutional characteristics of the employment protection system and industrial relations, including the size and strength of labor unions, determine the choice between liberalization for the nonregular workforce and liberalization for all as well as the degree of labor market inequality in the process of reform.
•Employment effects depend on former land-use, the crop cultivated, and the production model.•Direct job creation is limited and many projects massively crowd out smallholders.•Crowding out occurs in ...all regions but with considerable regional differences.•Large losses on the local scale but small in relation to total employment in agriculture.•Indirect employment effects become visible mostly in the medium- and long-term.
Large-scale agricultural investments (LSAIs) in general and their socio-economic implications in particular have been heavily debated in recent years. While some claim that LSAIs are an important catalyst for development in neglected rural areas, others caution that they pose a risk to rural communities’ livelihoods. The extent to which LSAIs provide benefits for local communities is hence still contested. This paper sets out to conceptually understand what effects the establishment of a large-scale farm has on the rural labor market in low- and middle-income countries. In addition, we empirically address the question of whether large-scale farming as recorded in the Land Matrix creates or destroys employment. We develop a transition matrix to identify several scenarios based on key determinants of the direct employment creation potential of LSAIs, namely the former land use, the crop type and the production model. We empirically assess the actual importance of these scenarios and the employment creation to be expected from this sample of LSAIs based on labor intensities. We further look into the net employment effects for land formerly used by smallholder farmers. Our analysis shows that LSAIs massively crowd out smallholder farmers, which is only partially mitigated through the cultivation of labor intensive crops and the application of contract farming schemes. This holds true for all regions targeted by LSAIs, although regional differences are found in terms of magnitude. The paper concludes that these effects tend to be large on the local scale (i.e., in the immediate surroundings of the investment site) but small in relation to total national employment in agriculture. However, indirect employment creation related to LSAIs, which is discussed but not empirically addressed in this paper, needs to be taken into account to have the full picture.
Spatial wage disparities can result from spatial differences in the skill composition of the workforce, in non-human endowments, and in local interactions. To distinguish between these explanations, ...we estimate a model of wage determination across local labour markets using a very large panel of French workers. We control for worker characteristics, worker fixed effects, industry fixed effects, and the characteristics of the local labour market. Our findings suggest that individual skills account for a large fraction of existing spatial wage disparities with strong evidence of spatial sorting by skills. Interaction effects are mostly driven by the local density of employment. Not controlling for worker heterogeneity leads to very biased estimates of interaction effects. Endowments only appear to play a small role.
We investigate the effect of studying abroad on international labour market mobility later in life for university graduates. We exploit the introduction and expansion of the European ERASMUS student ...exchange programme as an instrument for studying abroad. We find that studying abroad increases an individual's probability of working in a foreign country by about 15 percentage points. We investigate heterogeneity in returns according to parental education and the student's financial situation. Furthermore, we suggest mechanisms through which the effect of studying abroad may operate.
China's remarkable economic transition and capacity for dynamic growth has stunned the world. Throughout the period of economic reform, China has been moving towards the creation of a labour market. ...The scale of this transformation is unprecedented. New economic incentives, vast labour migration, draconian retrenchment of state workers, and sharply rising wage inequality are all characteristic of this unique transition. Drawing on more than a decade of survey-based research, the authors systematically document and analyse this important transformation. They use economic and sociological theory, institutional analysis and political economy to fully explain the causes, pressures, obstacles and consequences of the move towards a labour market in China. It is argued that much progress has been made towards the creation of a labour market but that the process is far from complete. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/economicsfinance//toc.html
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