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.     

A LOTTO SYSTEMS PROBLEM

A Lotto Systems bet allows the player to nominate n numbers from which (s)he believes the winning six numbers will be drawn, and to bet on all combinations of six of these n numbers. Assume that the winning six numbers come from the nominated n. How many combinations must be entered to guarantee that one combination will include at least five of the winning six numbers? The problem is generalized in this paper, and the method of simulated annealing is used to find solutions for various situations. The case where two supplementary numbers are drawn after the initial six winning numbers is also considered.     

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.     

Spiritual Gatekeepers: Time and the Rite of Christian Initiation of Adults

This article addresses the process of initiation into the Catholic Church by analyzing in‐depth interviews with parish‐based professional initiation coordinators. The formal title given to this process of initiation by the Church since Vatican II is the Rite of Christian Initiation of Adults (RCIA). Since the RCIA's promulgation, the Church has hired a host of lay and religious professionals to coordinate its implementation at the parish level. Our analysis focuses on the temporal sequencing and the problem of duration of initiation. The data show that both city and suburban coordinators adapted the Church's mandated length of time for initiation in different ways as they negotiated covenantal and contractual social relations among RCIA participants.     

Mining the Data: Analyzing the Economic Implications of Mining for Nonmetropolitan Regions

Extractive industries such as logging and mining are generally expected to bring significant economic benefits to rural regions, but a growing number of findings have now challenged that common expectation. Still, it is not clear whether the findings of less–than–desirable economic outcomes are isolated or representative. In this article, we assemble literally all of the relevant quantitative findings on mining that we have been able to identify in published and/or technical literature from the United States. In the interest of rigor, we limit the assessment to cases in which strictly nonmetropolitan mining regions are compared against other nonmetropolitan regions and/or against those regions’ own experiences over time. Overall, 301 findings meet the criteria for inclusion. Contrary to the long–established assumptions, but consistent with more recent critiques, roughly half of all published findings indicate negative economic outcomes in mining communities, with the remaining findings being split roughly evenly between favorable and neutral/indeterminate ones. Positive findings are more likely to be associated with incomes than with poverty or (especially) unemployment rates, and they are more likely to come from the western United States, where much of the mining involves relatively large, new coal strip mines. Over half of all positive findings come from the years prior to 1982. In virtually all other categories, the plurality or majority of findings have been negative. When the patterns of findings are subjected to one–sample means tests, the only way to produce a significantly positive outcome is by combining all neutral/indeterminate findings with the positive ones, while focusing exclusively on incomes; by contrast, in the case of poverty or unemployment rates—as well as for the overall body of findings—the results are consistently and significantly negative, whether the neutral/indeterminate findings are combined with negative ones or omitted from the equations altogether. Until or unless future studies produce dramatically different findings, there appears to be no scientific basis for accepting the widespread, “obvious” assumption that mining will lead to economic improvement.