What are the likely interactions among innovation,government debt,and employment?

The study here analyzes the interactions among labor, R&D intensity, and public expenditure on education (indicators of innovation), considering public debt of countries. The study is based on 27 European countries over the 1995–2009 and applies multiple regression analysis. Main findings seem to be: a significant interaction of public expenditure on education and R&D intensity with employment rate, whereas an increase of general government consolidated gross debt has a negative interaction for employment rate as well as for technology indicators. The theoretical framework and empirical evidence suggest vital political economy implications to support employment rate during contractions of the business cycle. In particular, considering the specificity of the economic structure of countries, a fruitful lung-run political economy of growth should slowly dry out public debt by supporting GDP growth, rather than reducing government debt with high taxation and balanced-budget rules, in order to decrease frictional effects for patterns of economic, technological, and employment growth.     

Income taxation and the allocation of market labor

The allocation of work effort within the market economy will be unaffected by taxation if all returns from labor market activity are taxed equally. However, if the earnings from certain types of market employment are taxed at relatively lower rates, labor will shift into these areas until after-tax earnings are equal across all types of employment. This paper presents evidence suggesting that income taxation induces labor to move from high- to low-tax geographic areas and from wage and salaried jobs into self-employment activities. By affecting the allocation of market labor, the income tax generates a welfare loss in addition to that resulting from the tax’s effect on total work effort.     

Employment Population Age-Share Differences: An International Comparison of the Economic Impact of Population Aging

International comparisons of the economic impact of population aging across nations can give valuable insights regarding which policies are most effective in addressing aging-related economic issues. Traditional old-age dependency ratios, by not accounting for differences in labor force participation rates, can be misleading. A new measure, the difference between an age group's share of total employment and its share of the total adult population, is developed and shown to be empirically sensitive to different policy actions. The analysis is built upon readily available and comparable International Labour Organization age-group data on population and labor force participation rates.     

Resistance to the political representation of alien populations: the European paradox

This article addresses the issue of the resistance of European nations to granting unnaturalized citizens the right to vote in local, regional, and national elections. It argues that this political inflexibility contrasts with the economic flexibility these nations demonstrated when they made a call for labor to overseas populations, former colonies, and other countries, and which they exhibit now as they work to modernize production systems in their industries. Because of this lack of political representation, local authorities have proven disinterested in migrants' concerns and migrants have become subjects of the labor market, rather than of the law. Overall "political underdevelopment" will only intensify the turbulence projected for Europe's economy.     

Non-clearing labor markets and minority employment in municipal government

This paper posits a public choice model for explaining the variation across cities in the minority share of local government employment. The paper argues that, when hiring under conditions of excess supply, vote-maximizing local public employers exchange public sector jobs for political support from identifiable special interest groups. The model is tested for two local government occupations — police officer and firefighter — using a sample of cities above 50,000 in population. The results are compatible with the basic hypothesis that the greater the excess supply for an occupation, the higher the share of minority employment in that occupation. We are indebted to James D. Adams, Bernard Bernstein, Ali Rassuli, and Loren Solnick for helpful comments on an earlier draft. The authors alone are responsible for the contents of the paper.     

Ideas in action: the politics of Prussian child labor reform, 1817–1839

This article explains the political origins of an 1839 law regulating the factory employment of children in Prussia. The article has two aims. First, it seeks to explain why Prussia adopted the particular law that it did. Existing historical explanations of this particular policy change are not correct, largely because they fail to take into account the actual motivations and intentions of key reformers. Second, the article contributes to theories of the role of ideas in public policymaking. Ideas interact with institutional and political factors to serve as motivators and as resources for policy change. As motivators, they drive political action and shape the content of policy programs; as resources, they enable political actors to recruit supporters and forge alliances. I offer a theory of the relationship between ideas, motivation, and political action, and I develop a methodological framework for assessing the reliability of political actors’ expressed motivations. Further, I explain how political actors use ideas as resources by deploying three specific ideational strategies: framing, borrowing, and citing. By tracing how different understandings of the child labor problem motivated and were embodied in two competing child labor policy proposals, I show how the ideas underlying reform had significant consequences for policy outcomes.     

Congressional support for unions’ positions across diverse legislation

Organized labor has become increasingly active in national politics. This development has encouraged research into union political activities, particularly in the area of legislative politics. But little research has been published on the basis of congressional support for union positions on diverse public policy items. This paper has examined the correlates of congressional support for unions’ positions across 33 roll-call votes taken in the first session of the 98th Congress. Empirical analyses suggest that certain factors, such as legislators’ party affiliation and constituents’ ideology, are consistent correlates of such support across diverse legislation. The authors wish to thank John Delaney and Jack Fiorito for their generous comments on a previous version of the paper. They also wish to thank the union lobbyists who granted interviews. A Faculty Research Grant from the Graduate School of Business, University of Pittsburgh, provided partial support.     

Economic recession and migrant/minority youth in Western Europe and the United States

This paper considers the educational opportunities and employment futures of the children of migrants and minorities in Western Europe and the US beyond the lowest-paid and lowest-valued jobs currently held by their parents. Given that the economic recession has aggravated unemployment in the countries of origin of workers migrating to both Northern Europe and the US, it seems likely that workers will still want to go abroad. On the other hand, these workers in both regions have been concentrated in a highly segmented labor market in which they have little opportunity for professional advancement. A thriving black market for illegal workers also exists both for the US and for Northern Europe. Since this labor market structure shows no signs of fundamental change through natural or policy-directed means, it appears unlikely that migrants' children can expect any significant enhancement of their professional prospects. An alternative educational strategy might involve public commitment to provide effective education, training, and subsidized employment for all young people. Some type of allowance would be guaranteed to all young people engaging in further education and training schemes. Since the state is responsible for free elementary and secondary education, there may be a convincing argument that public responsibility extends to providing free further education and access to employment as well, as part of a forward-looking strategy for overcoming youth unemployment. Obviously, the current conservative climate across industrial nations is more inclined to blame the sloth of the victim who is unemployed. It is a legitimate question, however, as to how far a society can allow itself to widen the gap between rich and poor before it is obligated to change things.     

Constructing Workers: Working-Class Formation under Neoliberalism

This introduction to “Constructing Workers” places the contributions to the special issue in the context of a review of central themes in a broader literature on the definition of workers, their public identities, and their rights. This literature has developed over the past 30 years in sociology and, especially, in social and labor history. At the same time, a more recent literature has emerged, most clearly in the USA, but also in other national settings, on the changing role of labor unions and other types of labor organization in an increasingly global economy. The two sets of scholarship are growing closer together and addressing importantly related themes, relevant both to more incisive sociological and historical understanding of the modes of labor organizing and regulation and to contemporary efforts to combat neoliberal restructuring of labor and class relations.

INTEGRATING ECONOMIC DUALISM AND LABOR MARKET SEGMENTATION:

Although the U.S. economy of the early twenty-first century is vastly different from the U.S. economy prior to the 1970s, the nature of these economic changes and their impact on U.S. workers is unclear. This article claims that despite contemporary economic shifts, differential labor and employer power continues to segment the economy, and workers' position in the labor market continues to predict their rewards, beyond the effects of gender, race, and human capital. Drawing on segmented labor market and dual economy research, we propose a four-category model of the structural factors that influence variance in work-related rewards. We examine the distribution of jobs in each of four categories between 1974 and 2000 and observe that losses and gains across categories are unevenly distributed by race and gender. While white men have experienced the greatest declines in employment and earnings, they have maintained their absolute advantage over women and nonwhites. In multivariate analyses, we find that the structural position of employment continues to be a significant determinant of wages. Although women and racial minorities have experienced sizable increases in employment in primary labor market jobs in the core of the economy, both groups remain overrepresented in low-paying jobs. Moreover women, but not nonwhite men, consistently receive significantly fewer rewards for their labor in both low-paying and high-paying jobs. Our findings suggest that structural factors continue to influence earnings inequality, especially across race and gender lines.     

Public enterprise and the rise and fall of labor share

Developed economies experienced a rise and fall in labor share (LS) in the postwar period. We present a novel explanation of these trends – public enterprise employment. We document a link between it and both LS and wage compression in 15 developed nations. We then build a model that shows how overstaffing public enterprises can increase LS and reduce wage inequality. Overstaffing directly increases public enterprise LS and indirectly increases private sector LS by reducing available labor. We examine several public enterprise reforms. Consistent with the model’s predictions, reforms reduce public enterprise LS permanently and private sector LS temporarily.     

Urban development and employment in Abidjan

The city of Abidjan in the Ivory Coast has grown physically, economically, and demographically at rates exceeding all reasonable expectation. Yet, as in many other development nations, the employment generated by Abidjan's rapid economic expansion has failed to keep pace with the increase in working population it has attracted. Consequently, economic success has been accompanied by a variety of social strains. Some of these have been discussed in earlier issues of the "International Labour Review" by Louis Roussel. This discussion expands on Roussel's earlier treatment by focusing more specifically on several facets of the urban employment problem created by the rapid growth of Abidjan. Attention is directed to labor supply and employment, factors affecting migration, foreign Africans in the Ivory Coast labor force; the urban informal sector; urban infrastructure and development; social problems of population pressure; employment policy options (current government policies and other policy options); and general issues and policy alternatives (motivations for rural urban migration, smaller urban centers as alternative growth poles, and distributing the gains from development). Several essential features of the employment problem stem from the rural urban distribution of the workforce. The rural labor force, including temporary seasonal workers from the savannah countries to the north, remains more or less in balance with increasing rural employment opportunities, since the migration of Ivory Coast nationals to the cities is balanced by the inflow of foreign workers. In contrast, the influx of migrants into urban areas has led to a more rapid increase in the urban labor force than in urban employment, with a consequent rise in unemployment. In 1970 the Abidjan rate of open unemployment was probably around 20%. At this time, most people's idea of a desirable job is one in the formal sector of the urban economy. If there is to be any hope of an eventual balance between expectations and reality, it must be realized that an increasing share of the urban labor force will have to end up in the informal sector. Different attitudes towards work in the informal sector are needed on the part of both young people entering the labor force and of government policy makers. The latter should be seeking ways to increase productivity and incomes in the informal sector rather than for ways to destroy it. Current government policies include the training and educating of nationals to replace foreign technicians and managers, increasing the attractiveness of the rural milieu by the promotion of cooperatives, attempts to reform the land tenure system, the supply of electricity to villages, and the introduction of educational television; and adapting the educational system and technical training programs to the needs of the economy.     

Three worlds of relief: race, immigration, and public and private social welfare spending in American cities, 1929

Using a data set of public and private relief spending for 295 cities, this article examines the racial and ethnic patterning of social welfare provision in the United States in 1929. On the eve of the Depression, cities with more blacks or Mexicans spent the least on social assistance and relied more heavily on private money to fund their programs. Cities with more European immigrants spent the most on relief and relied more heavily on public funding. Distinct political systems, labor market relations, and racial ideologies about each group's proclivity to use relief best explain relief spending differences across cities.     

Employment Insecurity and the Frayed American Dream

This paper reviews literature on employment insecurity and situates objective and subjective employment insecurity in the context of the contemporary economy. I draw on the argument about shifting social contracts to explain both real and perceived pervasive employment insecurity and the frayed American Dream. Employment insecurity derives from the macro‐economic changes that produced the social structure of accumulation identified as flexible accumulation that requires employment insecurity as both a form of labor discipline and profit‐enhancing strategy. This paper argues that contemporary employment insecurity is both objective and subjective and affects how individuals understand their world and their selves. To this latter point, I look at research on generational differences in the experience of employment insecurity.     

Gender and Occupation in Market Economies: Change and Restructuring Since the 1980s

This paper compares employment restructuring, gender, and occupationalchange in Japan, Sweden, the UK, and the USA, since the 1980s.Its analytical framework is derived from feminist debates aboutthe relative influence of political–economic skill regimesand cultural ideologies of gender on occupational sex segregation.In each country, the shift towards services has further concentratedmen's dominance of employment in extractive and transformativeindustries. Pre-existing patterns of occupational segregationbetween the sexes have not however been universally reinforced.A degree of occupational upgrading has facilitated women's movementinto a growing range of professional and managerial occupations,but the extent of economic opportunity for women is not a simplefunction of labor market economics. The social–democratic,egalitarian values and policies of Sweden, for example, seemto have offered greater economic benefits to women than themore individualized, liberalized labor market policies of theUK. In conclusion, it is argued that gender and markets aremutually constitutive; their evolution is not pre-given butsubject to political choices informed by history and culture.     

Migrant labor in agriculture: an international comparison

The May 1984 Conference on Migrant Labor in Agriculture at the University of California-Davis discussed papers by 22 farm labor experts from 12 nations. Each industrial nation utilizes a different set of public and private policies to supply workers for labor-intensive agriculture, but none is entirely satisfactory. Labor-intensive agriculture is becoming more dependent on workers who are shut out of labor markets. Some countries have simply accepted foreign workers in agriculture, while others have adopted policies to integrate farm and nonfarm labor markets. Polices to reduce agriculture's reliance on workers-without-options include restructuring employment practices to employ fewer seasonal workers for longer periods, mechanizing production, and importing fruits and vegetables from nearby developing countries. This article explains the salient features of labor-intensive agriculture, the various polices for obtaining seasonal farmworkers, and options to reduce farming's dependence on migrant labor.     

Legal aspects of exclusive representation: Ruminations on the private-public sector analogy

From the perspective of a management labor lawyer, this article argues that any legitimate theory of employment rights must be founded on the premise that employment is a voluntary relationship governed by mutual consent. In contrast, the erosion of the doctrine of at-will employment and the substitution of its legal antithesis, the tort of wrongful discharge, depend on a conception of employment rights as something the employee possesses at the employer’s expense, that is, without the employer’s consent. The theme of this article is that an employment right does not exist apart from contract. The government cannot violate an employment right unless it prevents a willing employee and a willing employer from making a contract concerning a proper subject on terms satisfactory to both. In public sector employment, the state is one of the parties to the employment contract. In most cases, a public employer cannot be “willing” if the same sovereign or polity has enacted conditions on public employment, that is, has placed limitations on itself. This article analyzes the legal aspects of exclusive union representation and related union security arrangements within this conceptual framework. Member, State Bar of California. Associate, Latham & Watkins, Los Angeles and San Diego. I wish to thank my colleague, Mark W. Smith, for his helpful suggestions and comments during the preparation of this paper. The views expressed here are solely those of the author.     

The case against union-only project labor agreements on government construction projects

Imposition of union-only PLAs in the public sector cannot be shown to serve the public interest. The government should not enter into the realm of labor management relations by arbitrarily creating a protected enclave for union work at the expense of taxpayers and to the detriment of fair and open competition. Government agencies that impose union-only PLAs in response to short-term political pressure from labor organizations will suffer long term consequences, in the form of litigation, increased costs of construction, and adverse taxpayer reaction. Mr. Baskin is a partner with the Washington, DC. law firm of Venable, Baetjer, Howard & Civiletti, LLP. He focuses on all aspects of labor and employment law representing management and serves as General Counsel of Associated Builders and Contractors, Inc.     

Economic Cost of Human Capital Loss from Fiji: Implications for Sustainable Development1

Small island nations in the South Pacific are facing a serious problem of loss of human capital. The loss of skilled and qualified personnel from the small pool is causing a major setback in terms of providing the technical expertise to forge ahead with reform programs that these economies are undertaking. Fiji's policymakers are increasingly confronting this issue, because the nation has experienced a massive outflow of skilled labor following the political instability in 1987. While there is an outflow of skilled labor, the country is also losing a large amount of financial capital. The extent of the outflow has yet to be measured due to lack of a methodology. This study advances a methodology to measure the loss to the economy arising out of human capital loss in a small island economy.     

Exclusive representation in public employment: A public choice perspective

Public sector unionization has grown rapidly in recent years, and research has suggested that among the reasons for such growth is legislation granting special privileges to public employee unions. This paper examines one form of legislative privilege, exclusive representation, from a public choice perspective. It is shown that exclusivity reduces employees’ freedom of choice, increases the welfare of union leaders at the expense of union members, limits employment opportunities to “outsiders,” entrenches the monopoly provision of public services, and generates conflict and instability in labor relations.