The mother market

Giving a woman good prenatal and maternity care can capture the health-care spending of her entire family for life. The next decade will bring several challenges to those who market maternity products and services, including fewer new moms, fewer babies in many markets, more minority mothers, and the end of childbearing for the baby-boom generation. The biggest challenge will be to provide a wide range of high-quality childbirth options in the cost-conscious world of managed health care.     

Stitching-up the labour market

In mainstream International Political Economy (IPE) writings on globalization, the multinational corporation (MNC) is placed at the centre of the emergence of a global market economy. Allied to this view is the normative position that these firms will have a positive, developmental impact on the states that they invest in. This article presents a gendered political economy perspective on the process of foreign direct investment (FDI), arguing that liberal IPE has failed to understand adequately the impact of the MNC on host states because of its attachment to ideas of rational action and modernization, and its assumption that the market is a gender-neutral space. By contrast, in this article, I argue that by looking at the gendered nature of recruitment practices within an MNC we are forced to confront the way in which firms work with existing inequalities embedded in the economy of the host state in order to secure a supply of low cost labour. The article presents case study research from an MNC operating in Malaysia, focusing on how company recruitment intersects with local social divisions based upon gender, ethnicity as well as age, rural–urban divides, class and education. I suggest that via its recruitment strategies, the firm plays a role in the construction of gendered and racialized inequalities. I argue that the MNC needs to be investigated as a site for the active construction of gendered identities across globalizing production lines, thus moving away from the traditional focus of feminist analysis of East Asian development on the experiences of the workers themselves.     

Goal-oriented agents in a market

We consider a market where “standard” risk-neutral agents coexist with “goal-oriented” agents who, in addition to the expected income, seek a high-enough monetary payoff (the “trigger”) to fulfill a goal. We analyze a two-sided one-to-one matching model where the matching between principals and agents and incentive contracts are endogenous. In any equilibrium contract, goal-oriented agents are matched with the principals with best projects and receive the trigger with positive probability. Moreover, goal and monetary incentives are complementary: goal-oriented agents receive stronger monetary incentives. Finally, we discuss policy interventions in relevant environments.     

Labor market contracting and wage dispersion

This paper uses a variety of data sources to document the effect of long-term contracts (LTCs) on wage dispersion. The paper first shows that LTCs are responsible for the decrease in wage dispersion observed as labor markets tighten; absent LTCs (as in most other advanced nations outside North America), this effect does not exist. The paper next examines the relationship between cost-of-living escalators (COLAs) and wage dispersion. COLAs are typically found only in those countries that rely on LTCs, although the incidence of COLAs in these nations is affected by inflation variability. Thus, in the United States, COLAs became much more prevalent in long-term contracts during the 1970s, which caused an increase in wage dispersion, particularly between the union and nonunion sectors. The paper concludes that, despite some suggestions that we ban LTCs and COLAs because of their perverse effects on wage dispersion and other economic outcomes, such a ban would be unwise in light of historically high levels of industrial strife in those nations that rely on these contractual devices.     

Union rents and market structure revisited

Several recent studies give conflicting evidence on whether market power associated with industry concentration is an important source of union rents. Using a 1977 sample of 327 four-digit manufacturing industries, we re-examine the issue with a regression analysis that allows for differential union effects on price-cost margins across three levels of concentration. Large and small firm as well as industry average price-cost margins are analyzed. The results reaffirm those of Hirsch and Connolly (1987), who conclude that the effect of unions on profits is independent of market structure, and thus market power is not an important source of union rents. We find that unionization: (1) reduces industry profits in all three concentration groups with statistically insignificant differential effects, and (2) has a greater negative effect on the profits of large firms than it does on the profits of small firms, regardless of the concentration category. We benefited from the comments of an anonymous referee. Any remaining errors are our own.     

Unemployment: A labor market perspective

Twentieth century economists have made countless attempts to resolve the causes and cures of unemployment. However none have ventured to consider unemployment not as a social problem but as a market response to political and economic incentives. By treating unemployment as a labor market, where workers rationally select periods of joblessness and where special interest groups profit from unemployment, this paper develops a theoretically consistent model to explain the effects that policy and economic variables have on unemployment. Empirical results support this approach and the worker disincentive effects of UI compensation by estimating simultaneously a demand and supply for unemployment.     

Policy impact on Tibetan market participation

Since the Chinese government began implementing economic reforms in the late 1970s, China has undergone profound economic change and growth. Since then, associated policies have provided many business opportunities in Tibetan areas of China, but Tibetans are poorly equipped to respond to and take advantage of these opportunities. The factors restricting effective market participation are complex and difficult to assess. There are no easy answers. Many political, social, cultural and environmental factors explain the difficulties encountered by Tibetan communities. However, this paper argues that relevant economic development policy is among crucial factors explaining the inability of Tibetans to compete with non-Tibetan migrants.     

Youth unemployment and labour market withdrawal

There is much concern that today's unemployed youth, particularly those belonging to ethnic minorities, are in danger of withdrawing from the labour market. However, there have been few attempts to test this assumption or to examine the social-psychological processes which may be involved. The literature on attitude-behaviour relationships and on human motivation implies that attitudes towards job seeking, expectations of obtaining a job, and the value placed on employment may all predict job-seeking behaviour. This hypothesis was tested with a sample of 1,150 unemployed 17-year-olds obtained from 11 urban areas in England. The hypotheses that lower values of all three variables will be associated with longer spells of unemployment and with ethnic minority status were also tested. Results provided support for these hypotheses. Multiple regression analyses suggested that these three variables had a mediating role in the relationship between reports of job-seeking behaviour and both length of unemployment and ethnic minority status.     

Intergenerational correlation of labor market outcomes

This paper contributes to the relatively limited literature on the correlation of labor market outcomes of parents and their children. This literature is relevant to the larger literature on intergenerational income mobility since correlation in intergenerational labor market outcomes is one of the potential factors contributing to the intergenerational correlation of permanent incomes. In this paper, we consider the time spent in unemployment by both sons and daughters, while accounting for the potential endogeneity of education. Using the Household, Income and Labour Dynamics in Australia data, we find evidence of a positive correlation of labor market outcomes between fathers and sons and, to a lesser extent, between mothers and daughters. In addition, the results reveal a significant relationship between parents’ and children’s education levels, indicating that there is an indirect association of parental education with their children’s labor market outcomes through education.     

A socio-economic approach to market transactions

The task of this article is to explore social underpinnings in economic exchanges. This exploration is undertaken within the frame of reference of socio-economics that centers on the multifarious social and cultural variables of economic phenomena. In particular, the socio-economic perspective on the market, focusing on the social setting of market exchanges, is utilized. As such, this exploration probes under the surface of (seemingly) cost-benefit induced exchange processes and uncovers a far more complex social structure and dynamics underlying these processes. Hence, these processes are analyzed as constituting socio-economic categories of the market. The social-cultural contingency of economic exchange, especially of its market varieties, is the key hypothesis of this article. This signifies that market exchange, just as production, distribution, and consumption, is a dependent variable on concrete social-historical conditions, rather than being a human universal. The approach proposed here provides an alternative to the purely economic conception, which treats exchange processes as strictly economic variables driven by an intrinsic logic and insulated from other social relations. The mainstream economic literature’s lack of consistent applications of such an approach to market exchange contrasts with the richness of such applications in the field of socio-economics. The paper’s aim is to contribute toward further elaboration and application of socio-economics.     

Two-sided market situations with existing contracts

The main aim of this paper is to study two-sided market situations where there are existing contracts which are exogenously given. These existing contracts could come from a previous competitive period or from any other circumstances. In any case, all these existing contracts provide an initial feasible solution for the two-sided market situation, perhaps non optimal in the sense the agents do not obtain jointly the maximum profit that they could get by cooperation. Therefore, the agents could be interested in improving their results through cooperation but taking into account the existing bilateral contracts. Thus, taking as starting point what each agent has got with the existing contracts, they have to distribute among themselves the extra amount that they could get by cooperation. For this kind of cooperative situation we propose different models and prove some results about the nonemptiness of the core and its relationship with the Owen set.     

Housing strategies in an uncertain market

The slump in house prices in the early 1990s created a degree of uncertainty in the housing market which contrasts markedly with the optimism of the 1980s. In particular, the market downturn made it sharply apparent that there could be losers as well as winners in the unstable housing market. This study looks at a sample of owner occupiers drawn from Glasgow and Bristol in 1995. While still endorsing home ownership as the major housing option and as potentially enabling in housing and neighbourhood terms, a note of caution is recognisable. Aspirations to climb the housing ‘ladder’ are tempered by fear of overextending financially and by the broader uncertainties that people perceive to be endemic in the labour market and the housing market. Strategies reflect both diverse personal histories and the adoption of defensive or risk reduction options. For many respondents maintaining current housing standards is more important than market advancement.     

The labor market in a socio-economic perspective

This article argues for a socio-economic approach to the analysis of labor markets. Three problems of the traditional economic approach are discussed. It is shown that the most fundamental flaw in the traditional analysis is the failure to analyze the role of time.     

Airline deregulation and the airline labor market

The Airline Deregulation Act of 1978 has had a significant impact on the airline industry and its labor market. The structure of the airline labor market before the Act is examined in light of certain significant historical events including legislative intervention and regulatory practice. The Act and other coincident extraneous events are considered to show how deregulation and other unrelated economic and technological factors operated as a catalyst, sparking substantial short-term upheaval in the airline labor market. It is argued that in the longer term airline employees have little to fear from deregulation and that deregulation may eventually enhance labor’s position in view of the increased employment opportunities that an expanded market may bring and the abolition of the industry strike insurance scheme. I thank Bo Carlsson, Paul Gerhart, and Paul Salipante for their comments and suggestions.