Sweatshops and third world living standards: Are the jobs worth the sweat?

Many studies have shown that multinational firms pay more than domestic firms in Third World countries. Economists who criticize sweatshops have responded that multinational firms’ wage data do not address whether sweatshop jobs are above average because many of these jobs are with domestic subcontractors. We compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide their workers an above average standard of living. The authors thank Jeffery Hummel, Charles Murray, Larry Pratt, and Edward Stringham for helpful comments on earlier drafts. Financial support from the American Institute for Economic Research is gratefully acknowledged. The usual disclaimer applies.     

Poor People in Poor Places: Local Opportunity Structures and Household Poverty*

Abstract Accounts of poverty generally fall into either “individualist” or “structuralist” camps. Often these are seen as irreconcilable and incompatible competing perspectives. This paper integrates individualist and structuralist accounts of poverty by examining the relationship between “person poverty” and “place poverty” in nonmetropolitan and metropolitan labor markets, using a multilevel framework. I fashion a general model of poverty production and allocation, drawing on the labor market ecology perspective. After a discussion of this perspective, I develop a multilevel framework for analyzing data from the 1990 Census PUMS‐L sample, STF‐3c, and other sources to show how compositional and contextual factors affect households' likelihoods of being in poverty. These multilevel models also allow us to estimate the degree to which labor market conditions influence the magnitude of household labor supply characteristics. Results suggest that both compositional and contextual factors contribute to the metro‐nonmetro difference in poverty rates, and that the effects of employment vary in accordance with labor market characteristics.     

Buying a Dream: Alternative Models of Demand for Lotto

Existing lotto demand models utilize effective price, computed as the face value of a ticket minus the expected value of prize money per ticket, as their primary explanatory variable. By contrast, this article proposes a key role for consumption benefit or "fun" in the demand for gambling in general and lotto demand in particular. It develops an alternative model of lotto demand that focuses on the maximum possible prize. When this is tested against the traditional model using data from the U.K. National Lottery, we find that jackpot considerations exert an influence over and above that of variations in effective price.     

Betrayal and repetition: Understanding aggression in sexually abused girls

Betrayal by a significant object is seen as primary in causing behavioral and emotional disturbances in incest victims, leading to a pervasive identification with the aggressor and disturbances in object relations development. Identification with the aggressor is understood not as a uniform defense mobilized against a specific affect but as a complex compromise formation which defends against anxiety, while also providing libidinal, aggressive and superego gratifications. Far from simply attempting to overcome the past, identifications thus preserve affects that have become pleasurable and self-defining. Two case studies of adolescent girls illustrate how treatment can help victims recognize and begin to forego the sadomasochistic pleasure derived from these identifications, a relinquishment necessary for true mastery.     

Factors Associated with the Development of Nonmetropolitan Growth Nodes in Producer Services Industries, 1980–1990*

Abstract Over the 1980–1990 period, employment in producer services industries in the nonmetropolitan United States increased substantially. This growth resulted in the development of nonmetropolitan growth nodes in producer services industries. A growth node refers to a nonmetropolitan area that contains a greater than average concentration of employment in a particular industry sector relative to other nonmetropolitan areas. Moreover, this industry concentration not only increases over time, but also represents an important source of employment growth within the area. With nonmetropolitan counties as the spatial unit of analysis, 317 growth nodes in producer services industries are identified for the 1980–1990 period. Access to workers with clerical and administrative support skills, access to highly educated workers, higher earnings per employed worker, access to recreational amenities, and proximity to metropolitan areas were associated with the development of nonmetropolitan growth nodes in producer services industries during this period.