Home Ownership, Social Insurance, and the Welfare State

Home ownership has potentially significant consequences for welfare state policy. High owner-occupancy rates may function as private insurance where social spending is low (a substitution effect). Alternatively, state income redistribution policies could raise the number of home owners (an income effect). Cross-national time-series data show that social spending is negatively related to home ownership, and mediates the positive relationship between income inequality and owner-occupancy rates. This suggests that owner-occupancy acts as a form of social insurance over the life course. Future welfare state researchers should consider the issue of home ownership in analyses of inequality and the social safety net.

The Impact of Privatization on the Earnings of Restructured Workers: Evidence From the Oil Industry

We study the long-term impact of job displacement from a big state owned enterprise as a result of its privatization in a developing country. Our results suggest large reductions in earnings, which persist throughout the years. However, we also find that the displaced worker’s post-displacement earnings are in line with competitive market wages, and unrelated to sector of employment or to tenure losses, indicating that the long-term reduction in earnings as a result of displacement because of privatization can be traced to the loss of wage rents. Our results indicate that job displacement in SOEs may have very large redistributive implications for the workers involved but that this loss does not necessarily reflect the loss of specific human capital associated to these jobs.

Chinese Property Law (Rights in rem) in the Civilian Tradition

The legal transitions of private ownership from being admitted limitedly to being protected equally with public ownership, and of the peasants’ right on rural lands from a contractual right to the right in rem, are almost the same process of social reform. And in the interaction of social development and legislation, the law has taken on an increasing role in social transition.

Reduced prizes and increased effort in contests

We study the general class of two-player public-policy contests and specify the asymmetry condition under which a more restrained government intervention that reduces the contestants’ prizes has the “perverse” effect of increasing their aggregate lobbying efforts.

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Justice Sector Reform in Afghanistan: From a ‘Lead Nation’ Approach to a ‘Mixed Ownership’ Regime?

The article describes the policy-making structure which governs the reform of justice in Afghanistan. It is characterized by an evolution from a bilateral to a multilateral approach, aimed at increasing the Afghan ownership. However, observing the system ‘from within’, it seems currently ruled by a mixed regime, being still deeply influenced by external inputs. As a consequence, the final outcome of the process remains uncertain.

From Global Cities to the Lands’ End: The Relocation of Corporate Headquarters and the New Company Towns of Rural America

Since the 1970s, a number of major corporations have located their corporate headquarters in rural and non-metropolitan areas. I interrogate this phenomenon, based on a case study of Lands’ End, a global apparel firm in Wisconsin. Much research has exposed how firms insulate themselves from claims made by workers and communities through organizational and spatial distance (i.e. global sourcing, casualization of employment structures). Corporate headquarters relocation presents a paradox, bringing key decision-makers in the global economy into new, face-to-face relationships with workers and communities. Negotiated against a radical transformation of local class structure, I argue that new forms of social regulation are emerging—in particular, a hybrid version of the Fordist-era company towns.

The scoring rules in an endogenous election

Plurality rule is mostly criticized from being capable of choosing an alternative considered as worst by a strict majority. This paper considers elections in which the agenda consists of potential candidates strategically choosing whether or not to enter the election. In this context, we examine the ability of scoring rules to fulfil the Condorcet criterion. We show for the case of three potential candidates that Plurality rule is the only scoring rule that satisfies a version of the Condorcet criterion in two cases: 1) when preferences are single-peaked and, 2) when preferences are single-dipped.

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Effect of agricultural policy on succession decisions of farm households

Policymakers, economists, and researchers have recently been interested in assessing the impact of farm program payments on the growth and survival of farm businesses. Planning for succession is an integral part of managing a farm business. This study uses farm-level data to investigate the impact of government farm policy and farm growth on both succession decisions and the likelihood of intra-family transfers of the farm business. Results indicate that succession decisions are significantly influenced by government farm policy, farm wealth, age, and educational attainment of current farm operators. Results show that off-farm work by operators and spouses and regional location are positively correlated with non-family farm succession decisions. On the other hand, farm ownership, educational attainment, and marital status of the operator increase the likelihood of family-based succession decisions. However, in the presence of retirement income from other sources such as pension, parents are less likely to have a family successor.

Does housework matter anymore? The shifting impact of housework on economic inequality

In recent years, American women’s housework time has declined while American men’s housework time has risen. We examine how these changes have affected economic inequality in the United States. Using time-diary data from the Time Use in Economic and Social Accounts, 1975–1976 (N = 1,484) and the American Time Use Survey, 2003 (N = 5,534), we value adults’ housework using two alternative methodologies and assess its influence on households’ real access to goods and services in both years. Results suggest that housework reduces economic inequality in both years. But, between 1975–1976 and 2002–2003, overall economic inequality rose largely because of the growing wage inequality and also, in part, because of growth in housework inequality. Socio-demographic change partially inhibited the overall growth in economic inequality.

Social Enterprise in the United States and Europe: Understanding and Learning from the Differences

Since the 1980s both the United States and Europe have experienced a simultaneous expansion in social enterprise. However, little has been written comparing and contrasting American and European conceptions of social enterprise resulting in difficulty communicating on the topic and missed opportunities to learn and build on foreign experience. To address this need, this paper compares and contrasts American and European social enterprise through an extensive review of literature from the two regions and discussions with social enterprise researchers on both sides of the Atlantic. It outlines the definitions of social enterprise used by American and European academics and practitioners, identifies historical factors promoting and shaping different conceptions of social enterprise, and highlights the differing institutional and legal environments in which it operates. It concludes by identifying what Americans and Europeans can learn from each others’ experience with social enterprise.

Government Intervention in Public Sector Industrial Relations: Lessons from the Alberta Teachers’ Association

In the public sector, Canadian governments intervene frequently in labor disputes by suspending collective bargaining and curtailing legal strikes. Previous research has focused on the contours of government intervention, such as its overall effects on collective bargaining and strikes. The discussion highlights one actor, a government, restricting the behavior of another actor, a union, using legislation and policy making. As a result, we know less about more micro-level elements and implications of the process of government intervention. I address these themes using a detailed case study of the Alberta Teachers’ Association and the strikes it coordinated in 2002.

Airline Negotiations and the New Concessionary Bargaining

I ask whether the highly confrontational collective bargaining in the airlines is unique to that industry or a sign of a deepening crisis in union–management relations nationally. First, airline labor relations are reviewed in the context of extremely contentious negotiations, intense industry competition, complex and fragmented bargaining structures, frequent bankruptcies, and unpredictable external shocks. Next, concessionary bargaining in the airlines is discussed, and a new and extreme form of concessionary bargaining is identified. The emergence of the new concessionary bargaining in the airlines and its spread to the automobile sector is then interpreted as the early signs of a fundamental transformation of collective bargaining. The implications of the new concessionary bargaining are then described at the workplace, company, union, and societal levels.

On the influence of extreme parties in electoral competition with policy-motivated candidates

We study and compare equilibrium platforms in models of unidimensional electoral competition with two and four policy motivated parties. We first analyze the plurality game, where the party getting the most votes is elected and implements its proposed platform. Restrictions on the set of credible announcements are needed to get existence of equilibria. Comparing equilibria with two and four parties, we obtain that moderate parties react to the introduction of extreme parties by proposing the same or more extreme equilibrium platforms. We then study the proportional system, where the policy implemented is a weighted sum of the proposals, with the voting shares as weights. Here, the existence of extreme parties leads moderate ones to choose more centrist platforms. We finally test the robustness of our results with respect to, first, the enlargement of the strategy space to entry decisions and, second, to asymmetric distributions of voters' blisspoints.

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Efficiency of Microfinance Institutions in the Mediterranean: An Application of DEA

By applying the non-parametric Data Envelopment Analysis (DEA) method, even with all the limitations where error could cause significant problems, this paper attempts to investigate the efficiency of 35 Microfinance institutions in the Mediterranean zone during the period of 2004–2005. The estimated results prove that eight institutions are relatively efficient, and have a notable level of average efficiency and a potential of evolution while being referent to their technical efficiency. The survey also reveals that the size of the MFIs has a negative effect on their efficiency since the MFIs of medium size are more efficient than the eminent.

The inverse plurality rule—an axiomatization

Under the ‘inverse plurality rule’, voters specify only their least preferred alternative. Our first result establishes that this rule is the only scoring rule that satisfies the minimal veto condition (MV). We then prove that the inverse plurality rule is characterized by MV and the four well known conditions that characterize scoring rules; namely, Anonymity (A), Neutrality (N), Reinforcement (RE) and Continuity (CO). Our new characterization result is related to the characterizations of approval voting and of the widely used plurality rule. We finally show how the axiomatization of the inverse plurality rule can be extended to the axiomatization of elementary scoring rules (vote for t-alternatives scoring rules). We are indebted to two anonymous referees for their most useful comments.

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Deconstructing the Sibling Correlation: How Families Increase Inequality

Matched data for parents and siblings in Israel were used to decompose the sibling correlation in schooling and earnings into four components: (a) A “genetic” component induced by inherited ability, (b) Correlated effects induced by sharing common parents, (c) Contextual effects due to common ethnicity, and (d) An endogenous component induced by interactions between siblings. Most of the sibling correlation is due to the latter. Parents have little to do with the sibling correlation. The sibling interaction coefficients for schooling and earnings were positive, but it was considerably greater in the case of schooling. It was shown that sibling interaction increases inequality, especially in the case of schooling. However, parent–children interaction contributes little to inequality.

Decomposition of gini and multivariate gini indices

A new type of decomposition by population subgroup is proposed for the Gini inequality index. The decomposition satisfies the completely identical distribution (CID) condition, whereby the between-group inequality is null if and only if the distribution within each subgroup is identical to all the others. Thus, this decomposition contrasts strikingly with the subgroup decomposition of the generalized entropy measures, which satisfy the condition that the between-group inequality is null if the mean within each subgroup equals those of all the others. The new decomposition can be generalized to the distance-Gini index and the volume-Gini index, two multivariate Gini indices introduced by Koshevoy and Mosler, with some modification of the index definition and a somewhat loosened CID condition in the latter case. The source decomposition is also generalized to these multi-dimensional indices. Interaction terms appear among sources of different attributes in the decomposition for the modified volume–Gini index.

Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

Bridging the Organizational Divide: A Comparative Institutional Analysis of United States and International Humanitarian Service Delivery Structures

Hurricane Katrina, which devastated the New Orleans, Louisiana metropolitan area in August 2005, made many United States citizens more aware of how their national government undertakes its humanitarian relief responsibilities. Many learned for the first time, for example, that the federal government is a secondary responder and attends to natural disasters only when states and localities request such support and assistance. That U.S. framework and the international relief implementation structure are remarkably similar. This paper compares and contrasts these two aid implementation approaches with an eye to clarifying their similarities and differences and to identifying how each might better be understood for the future to secure improved coordination and more effective outcomes.

Predictors of Chapter 13 Completion Rates: The Role of Socioeconomic Variables and Consumer Debt Type

This study examined whether demographic or financial variables best predict completion of Chapter 13 bankruptcy plans. Multinomial logistic regression revealed that demographic variables were more important than financial variables in predicting completion. Completion of a Chapter 13 repayment plan was not associated with a debtor’s monthly income or expenses. Never married debtors, dependent children, a previous filing, and higher mortgage arrears increased the likelihood of dismissal. Longer job tenure and home ownership improved completion rates. Discharge was associated with higher unsecured debts. Results can help improve Chapter 13 completion rates. Debtors need guidance in setting up realistic repayment plans. Financial counselors could help ensure that repayment plans are feasible and to counsel debtors who miss a plan payment.