Under economic adjustment programs,do private sector wages respond to changes in public wages and employment?

We examine the spillovers from changes in public sector wages and employment on private sector wages. Using a panel VAR model, we show that changes in public sector wages have a greater effect on private sector wages than changes in public sector employment. We motivate our analysis using the Economic Adjustment Program for Greece, and a simple theoretical model. The empirical validity of these effects is verified through a series of robustness tests. These results have important implications on the evaluation of the recent EU Economic Adjustment Programs and the future design of Internal Devaluation strategies.     

Are good governance principles institutionalised with policy transfer? An examination of public–private partnerships policy promotion in China

This article explores the following question: To what extent are good governance principles being institutionalised in China as a result of public–private partnerships (PPP) policy transfer? Since 2013, China has been pursuing PPP and applying aspects of related good governance drawing from Western experience despite its radically different fragmented authoritarian regime. This makes China a unique case to observe the extent to which good governance principles can be institutionalised in very different contexts. This article assesses the degree of institutionalisation of three good governance principles that guide PPP policy elsewhere: transparency and accountability, willingness to collaborate and equity between partners. It argues that while the PPP policies have been applied extensively in recent years, these good governance principles have been institutionalised to varying degrees as they have had to be adapted and compromised to fit with existing power relations in authoritarian China. The findings aim to add value to the literature regarding PPP policy transfer and good governance, by revealing the challenges of institutionalising good governance principles through PPP policy transfer in an alien context.     

Did wages reflect growth in productivity?

The level of productivity doubled in the U.S. nonfarm business sector between 1970 and 2006. Wages, or more accurately total compensation per hour, increased at approximately the same annual rate during that period if nominal compensation is adjusted for inflation in the same way as the nominal output measure that is used to calculate productivity. Total employee compensation as a share of national income was 66% of national income in 1970 and 64% in 2006. This measure of the labor compensation share has been remarkably stable since the 1970s. It rose from an average of 62% in the decade of the 1960s to 66% in the decades of the 1970s and 1980s and then declined to 65% in the decade of the 1990s where it has again been from 2000 until the most recent quarter.     

Are the poor worse at dealing with ambiguity?

This paper studies the relationship between people’s ambiguity attitudes and income in the field using language as a natural source of ambiguity. It shows that the method of Baillon et al. (2017b) can be adapted for field studies, providing ambiguity measurement tasks that are more comprehensible for nonacademic subjects. Ambiguity attitudes were elicited in two groups of Chinese adolescents (poor rural and rich urban), among whom the income variation is big. In the rural group the poorer are both more ambiguity averse and more a-insensitive, whereas in the urban group the richer are more a-insensitivite. On average, the poor rural adolescents are worse at dealing with ambiguity than their urban counterparts. A-insensitivity, which measures people’s understanding of an ambiguous situation, is an important but sometimes neglected component of ambiguity attitude. Policies aiming to help people improve decisions may focus more on reducing a-insensitivity as this cognitive bias is more likely to be influenced by intervention than people’s intrinsic aversion towards ambiguity.     

Are bygones bygones?

This article reports an experiment which tests the principle of separability, i.e. that behaviour in a dynamic choice problem is independent of history and of unreachable eventualities. Although this is a well-known principle of orthodox decision theory and central to conventional economic modelling, it has been questioned on grounds suggested by non-expected utility models of choice under risk and by the psychology of affective influences on risk-taking. Our experimental design, which provides between-subjects tests of separability using three treatments in which the history preceding a decision is manipulated, is inspired by these concerns. We expose separability to a clean and harsh test, but find no evidence that it is violated.     

Does globalization benefit developing countries? Effects of FDI on local wages

Two different reactions to globalization (either supporting or opposing globalization) are observed throughout the world. Focusing on the effects on the labor market, we examine whether foreign direct investment benefits workers employed by local establishments in a host developing country. The analysis shows that they received wages above the market-based wage that would otherwise prevail in the absence of foreign establishments. Although concerns exist that growing multinational business might have negative impacts on local workers, this paper suggests that those fears might be unwarranted.     

Telling the other what one knows? Strategic lying in a modified acquiring-a-company experiment with two-sided private information

Theory and Decision - Lying for a strategic advantage is to be expected in commercial interactions. But would this be more or less obvious when lying could come from either party and question...     

Subsidizing wages or supplementing transfers? The politics and ambiguity of in-work benefits

In-work benefits (IWB) have become mainstream social policy programmes in modern welfare states. Aimed at employment promotion as well as poverty reduction, their introduction and expansion have been supported by both centre-right and centre-left governments. However, the article argues that policy positions towards IWB are essentially unstable. Political preferences can alter fast, with the same actors advocating IWB growth at one time and containment at another. In part, this is influenced not only by prevailing socio-economic conditions but also by the institutional shape of IWBs, their interaction with complementary policies, and their inherently ambiguous nature. Characterized by multiple aims, IWBs occasionally offer political opportunities but often create challenges and even confound policymaking. Thus, the understanding of the politics of IWB requires a careful consideration of the particular properties of concrete IWBs and the ways in which they relate to other policy arenas. The article discusses this with reference to relevant debates and reforms in Germany.     

Who Are the Poor?

Here we present the subject of poverty in the United States as one that is central to a concern with social issues and justice and argue that its relative invisibility in psychology reflects the discipline's dominant middle-class standpoint. We describe, first, the articles in this issue, which are focused particularly on the voices of poor women in the United States. Then we examine poverty in terms of its economic indicators as well as its experiential correlates.     

Are risk preferences stable? Comparing an experimental measure with a validated survey-based measure

We examine the stability of risk preference within subjects by comparing measures obtained from two elicitation methods, an economics experiment with real monetary rewards and a survey with questions on hypothetical gambles. The survey questions have been validated by numerous empirical studies of investment, insurance demand, smoking and alcohol use, and recent studies have shown the experimental measure is associated with several real-world risky behaviors. For the majority of subjects, we find that risk preferences are not stable across elicitation methods. In interval regression models subjects’ risk preference classifications from survey questions on job-based gambles are not associated with risk preference estimates from the experiment. However, we find that risk classifications from inheritance-based gambles are significantly associated with the experimental measure. We identify some subjects for whom risk preference estimates are more strongly correlated across elicitation methods, suggesting that unobserved subject traits like comprehension or effort influence risk preference stability.     

Minding the minister? Ministerial advisers in New Zealand government

Abstract

In recent years, political advisers have been in the spotlight in a number of Westminster nations. A surprising feature of the literature, however, is the relative lack of empirical attention paid to advisers themselves. Moreover, researchers have tended to focus on the accountability issues raised by the conduct of political staff at the expense of other significant matters, including advisers’ views of their influence on the policy process and on relations between ministers and public servants.

This article seeks to redress those gaps. Drawing on data from a survey of New Zealand's ministerial advisers, it describes the activities advisers engage in, and sets out advisers’ views on their contribution to the policy process, their bearing on relationships between ministers and officials, and the state of their own relations with public servants. It concludes that the ministerial adviser's role in the executive branch of New Zealand government is more varied and comprehensive than is frequently assumed.     

Are the Homeless Mentally Ill?

In Australia, it is widely believed that most homeless people have mental health issues and that mental illness is a primary cause of homelessness. This paper uses information from a study of 4,291 homeless people in Melbourne to investigate these propositions. The research found that 15 per cent of the homeless had mental health issues prior to becoming homeless. This challenges the community perception that mental illness is the primary cause of homelessness. The research also found that 16 per cent of the sample developed mental health issues after becoming homeless. Homelessness causes mental health issues for some people, particularly anxiety and depression. The claim that most homeless people are mentally ill sends the wrong message to policy makers about the services that are needed to assist homeless people.     

Eldercare and employed caregivers: a public/private responsibility?

The National Alliance for Caregiving (NAC) and the American Association of Retired Persons (AARP, 2004) have reported that 21% of the U.S. population provides family caregiving services to someone over 18 years old. Seventy-nine percent (79%) of these caregivers provide care for someone aged 50 or older. The majority of caregivers work full or part-time, and nearly two-thirds of employed caregivers make work-related adjustments in order to provide care (NAC & AARP, 2004). This article examines eldercare issues of employed caregivers, identifies current public and private policies addressing caregiver needs, presents a process model to assist organizations in creating family-friendly workplaces, and suggests social work roles that support family caregiving.     

Do government actions affect social trust? Cross-city evidence in China

This paper examines the impact of government actions on social trust after controlling for individual and community characteristics. Using unique individual level data drawn from the provincial capital cities across China, we find that trust in other people is strongly correlated with government actions. Positive actions by the government that facilitate information flow, including active communication and information transparency, significantly increase trust. Negative actions by the government, including corruption, violent law enforcement, and abuse of privilege, significantly reduce trust. These actions affect people's trust in the government in similar ways that they affect trust in other people. We also find that most individual characteristics are not strongly related to trust in others, while being a member of the Communist party increases the likelihood of trust.     

Negotiating the Superfund: Are Environmental Protection Agency regional officials willing to bargain with states?

Negotiation and bargaining are important activities in the implementation of intergovernmental public policies. Given the design of environmental policy, intergovernmental negotiations are an essential part of the interaction of environmental program managers. This study examines the willingness of Environmental Protection Agency (EPA) regional officials to bargain with their state counterparts in the national Superfund program. A model of working relationships is developed to analyze the negotiating behavior of regional EPA officials. The findings of this study indicate that both strategic (trust, involvement) and structural (relations with EPA headquarters, state program capacity, and state political context) factors are associated with whether or not regional officials are willing to negotiate with state-level administrators. The implications of these findings for the national Superfund program, the larger context of intergovernmental management, and larger themes in public administration are discussed in the conclusion of this paper.     

Are Event-Splitting Effects Actually Boundary Effects?

An event-splitting effect (ESE) occurs when an event, which yields a positive outcome in one lottery but zero under another, is separated into two sub-events and this increases the relative attractiveness of the former lottery. ESEs are attributed to either (1) a preference for more positive outcomes in lotteries, or (2) an aversion to more zero outcomes. An experiment is reported which replicates ESEs whilst controlling for explanation (2). This favours explanation (1), but a lack of generality in replication suggests previous ESEs to be partially due to (2). Implications are discussed for a related choice phenomena, decision theory, and real-world decision-making.     

Are middle schoolers with diverse friends liked,disliked, or unnoticed - and by whom?

Having cross-ethnic friends in early adolescence is associated with more positive intergroup attitudes, but little is known about the social signaling function of the diversity of friends. The current study examined how the ethnic diversity of students’ friends in seventh grade is related to their social status (e.g., acceptance, rejection, and social impact) by eighth grade in multi-ethnic schools. It is hypothesized that friend diversity is (a) related to higher social status among ethnic out-group peers as it signals inclusiveness, but (b) related to lower in-group social status as diversity of friends may threaten the ethnic in-group. Utilizing a longitudinal sample of ethnically diverse youth (n = 4653) from 26 middle schools, the study capitalizes on outgoing friendship nominations in seventh grade and incoming acceptance and rejection nominations in eighth grade, while controlling for overall social status in grade seven. A novel index was used to calculate the diversity of youth's friend groups, and precise coding was done to retain biracial youth in the analytic sample. Results showed that having diverse friends was related to higher visibility (i.e., social impact) and greater acceptance from ethnic out-group members. In contrast, adolescents with diverse friend groups were less visible and less accepted by their in-group. Diversity of friends was not associated with out-group or in-group rejection. Findings highlight the importance of understanding how the composition of friend groups may signal intergroup attitudes and in-group solidarity in ways that have social status trade-offs among out- and in-group members.     

Just Who Are You Calling Risk Averse?

This paper estimates individual risk preferences based upon data that are generated by the same individuals acting in different institutions. The results show that the (estimated) numerical values of individuals' implied risk parameters are not stable within individuals across institutions. Furthermore, the ranking across subjects of the numerical values of individuals' implied risk parameters is not preserved across institutions.     

Less social health insurance, more private supplementary insurance? Empirical evidence from Germany

Based on individual level data from Germany, we analyze the effect of changes in the compulsory benefit package of the social health insurance on the demand for supplementary private insurance, employing a difference-in-differences approach. The focus is on the exclusion of dental prostheses from the benefit package in 1997 and its re-inclusion in 1999. Individuals born prior to 1979 serve as control group because only the young were affected by the reform. No significant effect on the demand for supplementary health insurance is found. Thus, the notion of clients making informed choices about their health insurances’ coverage is not supported.