Subsidy policies with capital accumulation: Maintaining employment levels

We study a dual economy model of growth and unemployment in the presence of Harris-Todaro type labor migration. The model is a discrete time model of economic growth with given population but endogenous migration of labor. The economy tries to reach development in the quickest possible time while not allowing unemployment to rise above a socially acceptable level. We characterize situations under which maximizing the accumulation of capital in each period is optimal. We also study how particular taxes and subsidies affect unemployment and capital accumulation. Finally, we show that a higher initial capital stock does not necessarily mean a quicker attainment of self-sustained full employment.     

Immigration and internal migration “flight”: A California case study

Recent analyses of 1990 census migration data have pointed up disparities in the way immigration and internal migration contributions affect an area's demographic profile. They show that there is little overlap between states with large population gains from internal migration from other parts of the United States and states with large population gains from immigration from abroad. This emerging pattern, along with the fact that immigration and internal migration select on very different demographic characteristics, could lead toward a demographic balkanization of the nation's population. This paper evaluates immigration-induced out-movement from California, based on an analysis of recently released migration data from the 1990 U.S. census. The results presented here suggest that California's out-migration consists of two different migration systems: first, an immigration-induced flight that exports lower income and less-educated Californians, primarily, to the nearby states of Washington, Oregon, Nevada and Arizona. And second, a more conventional migration exchange with the rest of the United States that involves the redistribution of better educated, higher income migrants. It is the former migration system which appears to be most responsive to the low-skilled immigration flows, while the latter should be responsive to more conventional labor market employment characteristics. This implies that, irrespective of changing economic conditions in the state, the continued immigration of low-skilled migrants will lead to more losses of native-born internal migrants to neighboring states and metropolitan areas. However, these migrant streams will not be made up of the best and brightest residents that characterize most conventional migration streams.A longer version of this report with more extensive background statistics isResearch Report 94–306 (Frey, 1994b) available from Publications, Population Studies Center, The University of Michigan, Ann Arbor, MI 48104.     

Multiple-Scale Integrated Assessments of Societal Metabolism: Integrating Biophysical and Economic Representations Across Scales

The crucial challenge for integrated analyses of socioeconomic systems is keeping coherence in their multidimensional representation. Our approach describes the hierarchical structure of socioeconomic systems using the profile of allocation of human activity over a set of compartments defined at different hierarchical levels (e.g., whole countries, economic sectors, individual households). Compartments are characterized in terms of intensive variables (intensity of both exosomatic energy flows and added value flows per unit of human activity) and the extensive variable Total Human Activity population. In this way, relations of congruence across hierarchical levels can be used to link non-equivalent analyses. That is, changes in demographic variables, economic variables, technical coefficients, indices of environmental loading, institutional settings, and social aspirations are no longer independent of each-other even if described within different scientific disciplines.     

Demographic Efficiency: Concept and Estimation

The concept of demographic efficiency is proposed and data envelopment analysis (DEA) is introduced as a method for determining which countries are demographically efficient. While the purpose of the paper is primarily to introduce the concept and the method, several simple examples are used for purposes of illustration. The first two explore how efficiently countries have converted their level of development (the input) into male and female life expectancy at birth (the outputs). The second two reverse the postulated relationship, treating life expectancies as inputs reflecting general health status of a population, and level of development as the output. Countries are said to be efficient if they have achieved the maximum output observable for a given level of input, or if they have minimized the inputs needed to achieve a prescribed level of output. Together, the efficient cases form an efficiency frontier. DEA, a form of linear programming, also permits the degree of inefficiency of countries lying behind this frontier to be measured by calculating the extent of the output slacks that are present. Output slacks are the shortfalls in the level of performance that could have been achieved given the inputs available, and may themselves be treated as independent variables in explorations of the sources of demographic inefficiency. One example of such an exploration is offered—an attempt to account for shortfalls in female life expectancy, given levels of development.     

Migrant stock vs. lagged migrant flow as a determinant of migrant settlement. A comment on Anjomani and Hariri

In a recent contribution to this Journal Anjomani and Hariri present an interesting study of United States interstate migration which explicitly incorporates so-called flow diversion and flow creation effects. Their discussion and evaluation of the model, however, are marred by several factors. This paper contrasts the roles of migrant stock and lagged migration in migration analysis and then addresses (a) the problems encountered when the family-friends effect is proxied with measures of lagged migrant flows, (b) the problem of using a two-period lagged value of earlier migrant flow as an explanatory variable, and (c) this paper suggests an alternative method of correcting the Anjomani-Hariri model's problems with multicollinearity.The author is grateful to Walter J. Wadycki and to David A. Macpherson for helpful comments and suggestions. The author, of course, bears full responsibility for all errors that remain. This research benefited from a grant from the Miami University Committee on Faculty Research.     

Earth,the Business of the Future: From Ego Energy to Eco Energy

Just as we have a turn around manager to save a failing business organization, so it is held, we need a turn around perspective to retrieve the Earth from being in a deficit position. Hence the paradoxical emphasis upon the Earth as the business of the future. Two important distinctions are offered which together provide a new frame of reference for bonding the human and the Earth. The initiating event for the first distinction was a business conference whose purpose was to explore the emerging domain of ego energy. In a parallel way, it is proposed we explore the yet to be discovered domain of eco energy. With eco energy we open our narrowed human window to cosmic perception. With cosmic perception, the energy of the universe can flow through us. The second distinction is between looking at and seeing. Looking at refers to treating our world as a collection of objects. As a collection of objects the Earth can be processed as a series of business transactions. With seeing we relate to our world as a communion of subjects. Such seeing offers transforming power for the human and the Earth to engage in the dialogue of powerful listening and speaking on both individual and planetary scale. These two sets of distinctions are sounded like echo chambers against ten ecologically guiding statements. These ten guiding statements become a reality-testing, experiential framework. Such a turn around perspective offers a different vision to be operationalized in our individual, community, and business lives. Then we can see clearly and respond with eco energy to the Earth, the business of the future!     

On opulence driven poverty traps

Endogenous population growth, i.e., making the rate of population growth dependent on society's opulence, causes parametric changes to have a larger impact and can cause multiplicity of steady states in a dynamic intertemporal optimization framework. This provides a simple explanation for the possibility of differing growth paths between countries (using a standard production function) or another explanation of the poverty trap. We give two examples (opulence sensitivity and production sensitivity) that both give rise to three steady states in which poor (rich) countries will evolve over time to the low (high) income steady state. In both examples there are middle income countries that will choose the low (high) income steady state if they are impatient (patient), where patience is measured through the rate of time preference o. Foreign aid in the form of a large transfer of capital from abroad enables poor and impatient middle income countries to move to the high income steady state.We would like to thank Nico Heering, Martijn Herrmann, Theo Junius, Ngo van Long, Ad Pikkemaat, John Pitchford, Lakshmi Raut, Casper de Vries, an anonymous referee, participants of workshops at the University of Groningen and the University of Amsterdam and especially Harry van Dalen for valuable comments. The article was presented at the fifth annual conference of the European Society of Population Economics, Pisa 1991. The views expressed in the article are those of the authors and not necessarily those of the World Bank.     

Immigration,Welfare Magnets and the Geography of Child Poverty in the United States

This study presents a detailed look at the immigration and internal migration dynamics of child poverty for US States based on the 1990 US census. It assesses the impact of two policy-relevant factors on the migration of poor children across States: (1) the role of high immigration levels as a potential push for native-born and longer-term resident poor children whose parents may be reacting to the economic competition or social costs in high immigration States; and (2) the role of State AFDC benefits as a potential pull for poor children who migrate with their parents to States with higher benefit levels. The results make plain that the interstate migration patterns of poverty children differ from those of nonpoverty children, especially among whites and blacks. Female-headed households show different inter-state migration patterns than those in married-couple households. However, a multivariate analysis which includes standard state-level economic attributes provides more support for an immigration push than for a welfare magnet pull in affecting the inter-state migration of poor children. The findings also show a demographic displacement of poor children occurring in high immigration States where the net out-migration of poor children is more than compensated by larger numbers of new immigrant children in poor families with different demographic attributes. Because of these migration dynamics, the demographic profile of the child poverty population will differ across States, suggesting the need for different strategies toward reducing child poverty at the State level.     

The welfare effects of labour force growth with internationally mobile capital

The effects of labour supply growth on the welfare of preexisting destination and non-emigrating source populations are analysed. This growth occurs in open economies where free trade in capital goods is possible. Traditional small economy arguments for population growth rely on the existence of priced though internationally immobile factors. When all factors are freely-traded and population grows naturally the case rests either on market distortions or common property within families. In an integrated world labour growth can lead to capital flight and increasing wage differentials. With international interactions, immigration increases preexisting welfare in destination countries but generally (not always) reduces it for non-emigrants in source countries. Immigration provides efficiency gains to all originally resident in source countries. Natural population growth anywhere promotes efficiency gains everywhere.     

Tribal membership requirements and the demography of ‘old’ and ‘new’ Native Americans

This paper examines the twentieth-century population recovery of Native Americans with reference to urbanization, intermarriage, and differing definitions of the Native American population from census and tribal enrollment data. The recent increase in the Native American population reflected in regular US decennial censuses since 1960 is discussed in terms of changing self-identification of individuals as Native American. Also discussed are criteria for enrollment in Native American tribes, particularly blood quantum requirements. Census enumerations are compared with tribal enrollment data, and it is illustrated that a large proportion of those identifying as Native American in the census are not enrolled in Native American tribes. Special attention is given to how Native American tribal enrollment criteria might impact future population size.     

Interstate migration of the US poverty population: Immigration “pushes” and welfare magnet “pulls”

This study evaluates the social and demographic structure of poverty migration during the 1985–90 period based on an analysis of recent census data. Particular attention is given to the roles of two policy-relevant factors that are proposed to be linked to poverty migration. The first of these is the role of immigration from abroad and its effect on the net out-migration of longer-term residents with below-poverty incomes, from States receiving the highest volume of immigrants. Such a response, it is argued, could result from job competition or other economic and social costs associated with immigration. The second involves the poverty population magnet effect associated with State welfare benefits (AFDC and Food Stamp payments) which has come under renewed scrutiny in light of the impending reform of the federal welfare program. The impact of both of these factors on interstate poverty migration is evaluated in a broader context that takes cognizance of other sociodemographic subgroups, and State-level attributes that are known to be relevant in explaining internal migration. This research employs an exceptionally rich data base of aggregate migration flows, specially tabulated from the full migration sample of the 1990 US census (based on the residence 5 years ago question). It also employs an analysis technique, the nested logit model, which identifies separately the push and pull effects of immigration, welfare benefits, and other State attributes on the migration process. Our findings are fairly clear. The high volume of immigration to selected US Statesdoes affect a selective out-migration of the poverty population, which is stronger for whites, Blacks and other non-Asian minorities as well as the least-educated. These results are consistent with arguments that internal migrants are responding to labor market competition from similarly educated immigrants. Moreover, we found that the impact of immigration occurs primarily as a push rather than a reduced pull. In contrast, State welfare benefits exert only minimal effects on the interstate migration of the poverty population—either as pulls or pushes, although some demographic segments of that population are more prone to respond than others. In addition to these findings, our results reveal the strong impact that a State's racial and ethnic composition exerts in both retaining and attracting migrants of like race and ethnic groups. This suggests the potential for a greater cross-state division in the US poverty population, by race and ethnic status.Data Used: 1990 US census tabulations of full migration (residence 5 years ago) sample. Note: Detailed 1990 census statistics on migration of the poverty and nonpoverty populations for individual states can be found in: William H. Frey Immigration and Internal Migration for US States: 1990 Census Findings by Poverty Status and Race, Population Studies CenterResearch Report No. 94-320.This research is supported by the University of Wisconsin Institute for Research on Poverty Small Grants Program and by NICHD grant No. R01 HD29725. The migration data for this paper were prepared at the Population Studies Center, University of Michigan from 1990 US Census files. The authors acknowledge Cathy Sun for computer programming assistance, and Ron Lue-Sang for preparing maps and graphics.     

Social Development Trends in the Middle East, 1970–1997: the Search for Modernity

The nations of the Middle East have arrived at a historic crossroad.Anchored in centuries-old political and economic systems, bitterethnic rivalries, recurrent intra-regional warfare, and risingfundamentalism, the majority of the regions countries haveremained largely apart from the transformative processes that areshaping development in other world regions. Indeed, the impressionexists that no development miracles are occurring in theMiddle East and that, to a very great extent, the region isseeking to remain on the sidelines of modern history. And,yet, if the countries of the Middle East are to flourish in thenext century they, too, must restructure themselves for dealingwith the complex realities associated with increasing globalizationand internationalization. This paper reports on the socialdevelopment successes and failures of 22 Middle Eastern countriesbetween 1970 and 1997. Also identified are the regions SocialLeaders (SLs), Socially Least Developing Countries (SLDCs),and Middle Performing Countries (MPCs). The social, political,and economic factors most closely associated with each countrysdevelopment classification are identified.     

Fertility Policy and Employment: Implications from the Former Soviet Union

Using individual-level survey data that were collected in Russia in 1993, we analyze the fertility-employment relationship for a sample of urban women who bore children during the Soviet era. Although some Russian policy makers advocate policies that reduce female employment to stimulate fertility, we find little empirical support to ensure success of these policies. Specifically, we find no connection between employment and fertility for our sample of Russian females, perhaps because of their historic, mandated commitment to the labor market. Instead, we find that demographics and attitudes influence fertility decision making. These results, in combination with the findings that our sample of Russian women hold more traditional attitudes toward family and egalitarian attitudes toward work than similar American women, suggest that policies to stimulate fertility by reducing employment may not be effective for women raised during the Soviet era unless a dramatic shift in attitudes away from a strong work commitment also occurs.     

City Effect and Urban Overload as Program Indicators of the Regional Policy

The paper explores the constraints of an optimal regional policy, and itidentifies them through program indicators of city effect and overload.Based on a `programming approach to the regional analysis, and on the``optimal centrality' concept as meeting point of the city-effect andcity-overload curves, the paper outlines a core list of indicators ofcity-effect and overload, quantifying their dimensions (as findings ofresearch conducted for the European Commission, from 20 cities in 4countries of the EU: France, Germany, Italy and United Kingdom).Further, a ``strategy' for an appropriate urban-regionalreorganization, and for an appropriate `ambit of measuring urban lifequality, is outlined. And finally the misleading risks of comparisons inthe wrong spatial `ambit of data collecting about quality of life, arediscussed.     

Assessing the Impact of Proposed Bank Mergers on Rural Communities: A Case Study of Bbritish Columbia

The restructuring of financial markets and financial institutions through bank mergers has been accompanied in many countries by concerns about the resulting `geography of finance. In Canada, two proposed mergers involving four of the largest banks have raised concerns about the possibleimpacts of the proposed mergers on the access to financial institutions in rural Canada. This paper assesses the potential impact of the proposed mergers on the geography of finance in rural communities in British Columbia. The methodological choices which must be made to frame such an anlysis are discussed and include choices related to the definitions of `accessibility, the `industry, a `competitive industry, a `bank branch and a `community. A new Index is devised to measure the vulnerability of rural communities to post-merger bank branch closures. It is concluded that the bank mergers will, if approved, have significant negative impacts for the accessibility of the banking system in rural British Columbia. It is also suggested that Canada needs to examine establishing a wider regulatory framework which addresses the issue of accessibility on a longer term basis.     

Constructing a Quality of Life Scale for Older Chinese People in Hong Kong (HKQoLOCP)

This paper reports a multi-stagestudy carried out between 1999 and 2001 whichaimed to develop an instrument to address theneed for a culturally relevant measure ofquality of life for Chinese older persons inHong Kong and similar communities. The firststage of the research involved a focus groupstudy conducted in August 1999 which it washoped would reflect how quality of life maybe interpreted by older persons themselves. Thenext stage, a content analysis of the focusgroups, enabled the construction of aquestionnaire containing over 100 items onvarious aspects of quality of life (QoL). Thequestionnaire was reviewed by a panel ofexperts and the items were refined and reducedto 86 to which were added a further 25 itemsfor socio-demographic background. This formedthe initial instrument. The final stage was avalidation study based on a representativecommunity survey, with a sample of 3,000respondents drawn for the research team by theCensus and Statistics Department of the HongKong Special Administrative Region (HKSAR)Government. The survey yielded 1,616 successfulinterviews with older persons aged 60 or above.The careful stratification of the sampleenabled us to say that subjects in all thestages of the survey had broadly similarcharacteristics to the general Hong Kongelderly population in sex and age distribution.After a rigorous process of validation, theresearch team recommended the adoption of bothan index and six domains for measuring HongKong older persons QoL. The new scale containsa total of 21 items which can be grouped intovarious domains: subjective well-being, with 4items; health with 5 items; interpersonalrelationships with 6 items; achievement-recognition with 4 items, finance and livingconditions (1 item each). The overall QoL scalehas a Cronbachs alpha of 0.72 with its domainsranging from 0.65 to 0.77 which indicates ahigh degree of statistical reliabilities. Thename recommended for the scale was Hong KongQuality of Life for Older Persons Scale-abbreviated as HKQoLOCP.     

Three Centuries of Global Population Growth: A Spatial Referenced Population (Density) Database for 1700–2000

The Earths surface has changed considerably over the past centuries. Since the start of the Industrial Revolution in the early 1700s, humans from the Old World started to colonize the New World. The colonization processes lead to major changes in global land use and land cover. Large parts of the original land cover have been altered (e.g., deforestation), leading to extra emissions of GHGs to the atmosphere and enhancing global climate change. The spatial and temporal aspects are still not very well known. More and more global integrated environmental assessments concerning global sustainability require long time series of global change indicators, of which population is an important one. This study presents an update of the geo-referenced historical population maps for the period 1700–2000, part of the History Database of the Global Environment (HYDE), which can be used in integrated models of global change and/or global sustainability.     

Reflections on sustainability,population growth,and the environment

The related terms, sustainable and sustainability, have become popular and are used to describe a wide variety of activities which are generally ecologically laudable. At the same time, the term compromise is heard more frequently because the needs of the environment often are in conflict with the needs of humans. A brief examination of the question of compromise shows that a series of ten compromises, each of which saves 70% of the remaining environment, results in the saving of only 3% of the environment. Judging from the ways in which the terms sustainable and sustainability are used, their definitions are not very precise, especially when compromises are involved. An attempt is made here to give firm definition to these terms and to translate the definition into a series of laws and hypotheses which, it is hoped, will clarify the implications of their use. These are followed by a series of observations and predictions that relate to sustainability.     

Population growth,environmental awareness,and policy direction

Many policy analysts, commentators, and researchers claim that the issue of human population growth no longer receives the attention and concern it once enjoyed in both the popular and specialized media. Other commentators state that scientists and decision-makers are held captive by media-savvy environmentalists who seek to fulfill a political agenda by limiting population expansion. I investigated the change in media coverage of population issues by tallying the number of population-related articles listed during 1967–1989 in 3 periodical index services. Media coverage has declined sharply since the early 1970's. Possible causes of the decline are discussed in the context of the larger debate between population pessimists and population optimists.