Pushed or Pulled? Women's Entry into Self‐Employment and Small Business Ownership

Over the past two decades the economies of Canada and many other industrialized countries have seen significant restructuring, bringing with it steadily rising levels of self‐employment and small business ownership. Women have been at the forefront of this change. Of the many questions raised by women's entrance into self‐employment, a central one concerns the factors fuelling its growth. While some argue that women have been pulled into self‐employment by the promise of independence, flexibility and the opportunity to escape barriers in paid employment, others argue that women have been pushed into it as restructuring and downsizing has eroded the availability of once secure jobs in the public and private sector. To date, existing research on the ‘push–pull’ debate has not fully answered; these questions, with survey and labour force data suggesting only general and sometimes contradictory, trends. This article examines this issue in greater detail, drawing on in‐depth interviews with 61 self‐employed women in Canada. Overall their experiences shed further light on the expansion of women's self‐employment in the 1990s, suggesting push factors have been underestimated and challenging the current contours of the ‘push–pull’ debate.     

Disproportionality and Resource‐Based Environmental Inequality: An Analysis of Neighborhood Proximity to Coal Impoundments in Appalachia

Environmental hazards created by resource extraction impose numerous risks on rural populations, but have been understudied in quantitative analyses of environmental inequality. This study fills that gap by examining whether neighborhoods with socioeconomic disadvantages are disproportionately proximate to coal impoundments in Appalachia. Coal impoundments are large, hazardous dams that hold billions of gallons of wastewater and slurry, a sludge‐like by‐product of processing coal. I ground this study in William Freudenburg's double diversion framework, which highlights “disproportionality”—the unequal trade‐off between economic benefits and environmental costs of certain industries. Disproportionality is evident in Appalachia, where coal mining makes up a small percentage of the region's jobs, but threatens local communities through the creation of environmental hazards. Spatial regression results indicate that neighborhoods closest to impoundments are slightly more likely to have higher rates of poverty and unemployment, even after controlling for rurality, mining‐related variables, and spatial dependence. The findings also suggest that a neighborhood's proximity to past mining activity is a stronger predictor of impoundment proximity than current levels of mining employment. This article lays the groundwork for future research on resource‐based environmental inequality that considers the uneven spatial distribution of hazards created by resource extraction.     

Employment and labour productivity in high unemployment countries

Contemporary development strategies emphasize labour productivity growth because it has historically underpinned rising living standards. Today, however, poverty reduction and inclusive development in those developing countries with high unemployment require increasing the employment rate even if this means lower average labour productivity. We critique the International Labour Organization (ILO) for its overly universalizing advocacy of high‐productivity growth strategies and for failing to confront the trade‐off between more and better‐quality jobs. This is particularly problematic in high unemployment contexts in Southern Africa, where labour productivity growth between 2000 and 2013 came at the cost of a falling employment rate.     

Education and wage inequality in the informal sector: The case of Cameroon

This article analyses the effects of education on wage inequality in the informal sector in Cameroon. The author uses quantile regression on data from the Second survey on employment and the informal sector in Cameroon (EESI 2) of 2010. The results indicate that both wages and wage inequality increase with education in the informal sector, with tertiary education creating greatest inequality. These findings point to a number of policy recommendations for a transition to formality, such as the creation of more jobs for a skilled workforce, the development of sites adapted to informal sector activities and the creation of more vocational schools.     

Income Inequality across Micro and Meso Geographic Scales in the Midwestern United States, 1979–20091

This article examines the spatial distribution of income inequality and the socioeconomic factors affecting it using spatial analysis techniques across 16,285 block groups, 5,050 tracts, and 618 counties in the western part of the North Central Region of the United States. Different geographic aggregations result in different inequality outcomes, suggesting spatial scale needs to be carefully considered in inequality research. Inequality is spatially clustered in suburban areas of larger metro areas and around Native American reservations in the Dakotas. Higher inequality is associated with better socioeconomic conditions, counter to the social inequality literature but consistent with the inequality growth literature. However, growing inequality is associated with worse socioeconomic outcomes. Results partially support the polarization thesis that declines in industrial sectors and growth in services has caused incomes to diverge. Higher and growing inequality is associated with both low‐skill and high‐skill services jobs. However, employment in agricultural and industrial sectors experiencing large losses over the past three decades is also linked to higher and growing inequality. This suggests a dual process where many former agricultural and industrial workers are now employed in other sectors at lower wages, while the remaining workers in these sectors earn higher and growing wages.     

关于当前形势下促进就业问题研究

参照国际经验,结合我国实际情况,在经济增速减缓和结构调整加快的新形势下,未来我国就业可能出现的问题有:"结构性招工难"的矛盾放大、高校毕业生和大龄失业人群等就业难的问题加剧、就业区域转移的态势迟滞、劳资矛盾与纠纷增多。今后几年,应紧紧围绕"实现更高质量就业、实施更加积极的就业政策"的要求,立足当前,着眼长远,贯彻落实就业优先战略,及时调整政策关注点和实施手段,建立健全促进就业的长效机制。     

Economic Circumstances and Family Outcomes: A Review of the 1990s

This review documents the economic context within which American families lived in the 1990s. Despite nearly full employment and growing income and wealth for many Americans, problem areas included persistent racial gaps in economic well‐being, growing inequality, and declining wages for young men. Women showed stronger income growth than men in the decade, and 2‐earner households became increasingly associated with advantage. We review the consequences of these trends and of economic well‐being generally on 4 dimensions of family outcomes: family formation, divorce, marital quality, and child well‐being. Despite hypotheses suggesting that women's earnings might have different effects on family outcomes than men's earnings, generally the review supports the expectation that both men's and women's economic advantage is associated with more marriage, less divorce, more marital happiness, and greater child well‐being. Important issues regarding measurement, reciprocal relations between family structure and economic well‐being, and race and gender effects remain unresolved.     

Information and communication technology adoption in micro and small firms: Can internet access improve labour productivity?

The rapid spread of information and communication technologies (ICT) may increase firms’ productivity with important consequences for job creation and for economic growth. This article contributes to this discussion by analysing the impact of internet adoption on labour productivity and the mechanisms shaping this relationship in Peruvian micro and small manufacturing firms over the period 2011–2013. The article estimates a reduced form where labour productivity is a function of internet adoption and other explanatory factors. Internet adoption is instrumented using a measure of the availability of financial opportunities for micro and small firms in Peru. Findings indicate that internet adoption: (a) increases firms’ labour productivity; (b) reallocates employment away from temporary administrative workers and non‐remunerated workers and expands employment of permanent production workers; (c) leads to the formalization of labour relationships, to the implementation of new organizational practices and to the improvement of training measures. While changes in employment and formalization of workers are linked to labour productivity gains, increases in training measures and organizational changes do not generate any additional productivity increase. Policies oriented to promote the adoption of ICT in micro and small firms can be beneficial to close the productivity gap with larger firms in Peru. Moreover, policies directed to the formalization of the workforce can provide an extra benefit, i.e. additional labour productivity gains in firms adopting the internet. Finally, policies oriented to the development of digital skills are also important to ease the re‐employment of those workers losing their jobs and the achievement of additional productivity gains that new organizational practices can provide.     

Six central features of the Chinese labour market: A literature survey

In this comprehensive analytical overview, the author pays particular attention to the changing structure of China's employment towards more private‐sector jobs in urban areas; its rising wages and widening earnings inequality; the persistence of its hukou system, causing labour market discrimination, an urban labour shortage and a rural labour surplus; its more market‐oriented wage structure, albeit with segmentation between firm ownership types; its relatively low unemployment; and the relatively weak role of its traditional labour market institutions, including minimum wages and trade unions. The aim is to contribute to the development of more suitable, China‐specific theoretical models and sound policy analysis.     

The manufacturing–services dynamic in economic development

This article addresses the debate on services‐led growth in which services are variously portrayed as a substitute for or as a leading or lagging complement to manufacturing. Following a survey of related empirical studies, it applies growth decomposition methods to data for 18 countries in Asia and Latin America for 1980–2005, focusing on manufacturing and services that make intensive use of information and communication technology. By grouping the countries into four categories according to aggregate labour productivity and employment growth, the authors seek to identify common structural characteristics of better and worse performing countries. They also consider the viability of the services‐led growth path in India in particular.     

Recession and Migration: A New Era for Labor Migration?

The current recession, the worst in a half century, is likely to affect international migration differently than past recessions. In 1973–1974 and 1981–1982, rising oil prices led to recessions in oil‐importing countries and economic booms in oil‐exporting countries, enabling some migrants to shift from bust to boom areas, as from Europe to the Middle East. The 1997–1998 Asian financial crisis did not spread globally, and was followed by a relatively quick resumption of economic and job growth that attracted migrant workers. The 2008–2009 recession is most severe in countries that had the most severe debt excesses, including the U.S., Spain, and Eastern Europe, and in countries most dependent on trade, including many Asian countries. New deployments of migrants are likely to slow, but what is not yet clear is how many migrants who lose jobs will remain abroad.     

Migration and Development: Mexico and Turkey

Mexico and Turkey are among the world's leading labor‐sending nations, with about 11 million Mexican‐born and 3.5 million Turkish‐born persons abroad in 2006. After two decades of uneven growth and job creation as well as persisting poverty and inequality, there are debates within both countries asking whether economic reforms have gone far enough to put the economy on a stable footing for sustained and equitable growth, or whether emigration (pressure) will continue. Some Mexicans are seeking to deepen North American Free Trade Agreement, while most Turks support entry into the European Union as a way of speeding economic growth.     

The Malaysian state's response to migration

This paper aims to provide a profile of migration trends in Malaysia since 1970 and to analyze public policy on migration in the context of economic growth and the labor market. The discussion centers on the impact of the Asian financial crisis. There is long history of immigration to Malaysia. The development strategy of the 1970s and 1980s was to create more jobs and restructure employment to meet equity goals. Labor shortages on plantations and construction booms led to a more organized, sustained effort to import labor. Recession in the mid-1980s led to unemployment, but many Malaysians were unwilling to work on plantations, in construction, or in low paying jobs. Economic growth during 1987-96 was very high, and labor shortages spread to service and manufacturing sectors. Migration policy has shifted over the decades. Both the market and the government's promotion of export-based industrialization require access to low cost migrant labor. Public and official recognition of the large number of migrants was not made until 1995. The financial crisis in 1998 led to enforcement of a new migration policy on illegal migrants and greater outflow of migrants. The economic crisis has increased job and income inequities in the region; this encourages continued migration. It is argued that it would be best for Malaysia to maximize short-term gains while minimizing long-term economic, social, and political costs.     

Getting Serious About Inequality

Sociologists have spent a great deal of energy studying social inequality, but in this presentation I suggest that we need to refocus our efforts a bit. I examine four popular myths among the general public, and among some in sociology, regarding the drivers of extreme inequality: (1) that most inequality is generated by race and gender, (2) that most inequality is driven by educational inequality, (3) that most inequality is driven by differences in family structure, and (4) that most inequality results from face‐to‐face interactions. I provide preliminary evidence that our explanations need some work. That work involves recognizing that most inequality is generated within demographic groups and that this inequality is growing rapidly. It also involves recognizing that there are few ways to incorporate underrepresented groups into the mainstream of a social and economic system where extreme inequality is getting worse and substantial percentages of the population face economic stagnation and downward mobility. The conclusion represents a call to focus on the most important group gap—the widening gap between the wealthy and the poor—and the mechanisms through which most people gain access to economic goods, services, and social respect—jobs and money.     

The economic significance of laws relating to employment protection and different forms of employment: Analysis of a panel of 117 countries, 1990–2013

The authors use time series econometric analysis applying non‐stationary panel data methods to estimate the relationships between employment protection legislation and legal protection of different forms of employment (part‐time, fixed‐term and agency work), and economic outcomes, with a data set based on the Centre for Business Research Labour Regulation Index (CBR–LRI), covering 117 countries from 1970 to 2013. Findings suggest that these laws have become significantly more protective over time and that strengthening worker protection is associated with an increase in labour's share of national income, rising labour force participation, rising employment, and falling unemployment, although the observed magnitudes are small when set against wider economic trends.     

INCOME INEQUALITY: THE CONSEQUENCES OF SKILL‐UPGRADING WHEN FIRMS HAVE HIERARCHICAL ORGANIZATIONAL STRUCTURES

During the last three decades, most developed countries have experienced increasing income inequality. Using Danish register data from 1992 to 2007 for all private‐sector employees, we confirm that income inequality has increased in Denmark. We also observe an increase in the relative employment of highly educated individuals, as well as differential income growth rates across employee subgroups where, in particular, managers experienced significant real income progression. We use an equilibrium search framework with on‐the‐job search to study the interplay between skill‐upgrading, management compensation, and income inequality. In this model we can determine the management and education premia. We can also show that when our model is exposed to skill‐upgrading, it is capable of producing income dynamics similar to those observed in the Danish income distribution. (JEL J3, J6, M5)     

Structural shifts in the employment of foreign workers in Austria

The full economic importance of immigration becomes clear only when one examines the concentration of immigrant workers in certain industries and occupations, and this is done in the case of Austria to show the degree of segmentation of the labor market between indigenous and foreign labor. In the course of the 1960s the employment of foreign labor gained importance in Austria. As a consequence, bilateral agreements with the major recruiting countries were made, e.g., with Spain in 1962 and 1969, with Turkey in 1964, and with Yugoslavia in 1966. The reason for the increasing demand for foreign labor was the short supply of indigenous labor due to increasing participation rates and strong economic growth. The demand-pull for foreign labor gained momentum with the onset of the economic boom in 1970, so that by the end of 1973 the number of foreign workers had doubled in comparison to 1970. The 226,800 foreign workers accounted for 8.7% of total employment. The 1974-75 recession and the weak economic development ever since resulted in a decreasing demand for labor. At the same time, the supply of indigenous labor increased as a consequence of a demographic effect and because of increasing participation rates of women. From 1981 to the present, foreign employment decreased again due to the unusually long period of economic stagnation. During 1983, 145,300 foreign workers were engaged, i.e., 5.3% of total employment. The structure for foreign employment now differs greatly from that in the 1960s. The share of women in foreign employment has increased steadily from some 20% in the early 1960s to 31% in 1973 and 40% in 1983 -- a value comparable to the Austrian female share in employment. The reduction of foreign employment since 1973 affected, above all, Yugoslav men. the share of Yugoslavs in foreign employment decreased from 196,300 or 79% in 1973 to 92,200 or 61.7% in 1983. With the duration of foreign employment rising, the disribution of foreign labor over economic branches increased. In the early 1960s the employment of foreign workers was concentrated in 3 branches -- the construction sector (32% of all foreign workers), metal industries (16%), and textile industries (10%). In 1982 only 1/3 of all foreign workers were still employed in these branches as an infiltration by foreign labor had taken place in all sectors. The services sector showed the greatest increase in foreign employment since 1975. There has never been as strong a concentration of 1 nationality in a particular economic branch as in Switzerland, Germany, or France. Case studies in Austria reveal that it was an explicit policy for firms (and also unions and entrepreneur representatives) not to depend on only 1 nationality of foreign workers. According to the case studies, about 1/3 of all foreign workers today occupy jobs which are in direct competition with indigenous labor. Another 1/3 fill jobs which are complementary to indigenous labor. For the remainder it is difficult to say to what extent they belong to one or the other segment of the labor market, because there is no information available on the occupational job structure.     

Pathways into Bankruptcy: Accumulating Disadvantage and the Consequences of Adverse Life Events

This study combines theories of accumulating disadvantage and economic insecurity using the event of bankruptcy to investigate how certain adverse life events jointly affect inequality. I analyze National Longitudinal Survey of Youth data from 1985 through 2008 to highlight the complexities of financial hardship in the path to bankruptcy. By applying hybrid mixed effects models to parse out within‐ and between‐person variation, I show that, in the case of bankruptcy, financial hardship unfolds over a specific series of events, which can lead to the accumulation of disadvantage connected to changes in employment, marital, and health statuses. I find that bankruptcy results from people's recent experiences of illness and marital dissolution, but not always directly from employment disruption. The effects of job loss on bankruptcy become more apparent as these events accumulate over time and limit wealth creation. The timing of events and their relationship with net worth also influence when a person will file for bankruptcy. As a whole, my findings demonstrate how adverse events and financial hardship lead to bankruptcy through multiple pathways.     

AFFIRMATIVE ACTION AND DYNAMICS OF WORK‐ETHIC PREFERENCES

This study examines the cultural‐transmission effects of compensatory‐discrimination affirmative action policies on work‐ethic preference dynamics for a population in a caste‐based segregated economy in which some high‐paid jobs are reserved for historically disadvantaged lower‐caste individuals. Cultural attitudes toward preferences for work‐loving and leisure‐loving traits evolve endogenously. The compensatory‐discrimination policies affect differently the preference dynamics for insiders (entitled to employment quota) and outsiders (not entitled to employment quota). Efficient and inefficient equilibria are possible, with larger or smaller proportions of individuals with a work ethic among the insider and outsider populations. The model shows that the commonly conceived conclusion that a job reservation policy benefits a disadvantaged group at the cost of efficiency and economic growth is not a necessary outcome. (JEL A12, C62, J71)     

Recession,austerity and gender: A comparison of eight European labour markets

The collapse in GDP brought about by the global economic crisis in 2008 affected female employment less than male employment, whereas austerity has been particularly harsh on women, a gendered impact described in the literature as “he‐cession to sh(e)‐austerity”. This article analyses gendered trends in the labour markets of eight European countries, decomposing quarterly changes in labour participation of women and men and in employment by sector. The “he‐cession to sh(e)‐austerity” scenario is not observed in all countries. Other channels through which austerity policies can jeopardize gender equality and women's rights are identified with reference to a typology of such policies.