BEYOND EDUCATION AND FAIRNESS: A LABOR MARKET TAXATION MODEL FOR THE GREAT GATSBY CURVE

Applied researchers have been drawn to models that attribute the demonstrated cross‐country differences in intergenerational income transmission to government failures to invest in the human capital of poor children. To highlight another potential mechanism, the disincentive effects of labor market taxation and redistribution, we present a simple model that can explain cross‐country differences in intergenerational mobility and other previously observed empirical patterns. Empirical tests using data on income mobility, tax rates, and public expenditures largely support the model predictions. We conclude that the common presumption that intergenerational mobility largely measures fairness or opportunity, and the resultant policy recommendations, are premature. (JEL D31, J24, J62)     

Bringing Aid Management Closer to Reality: The Experience of Danish Bilateral Development Cooperation

In 2003, the Danish Ministry of Foreign Affairs undertook a decentralisation of the management of bilateral aid to the embassies in major partner countries. However, while decentralisation appears to live up to the principles of the Paris Declaration on Aid Effectiveness, the specific delegation of responsibilities as well as the political context of aid management may jeopardise the intended contribution to effective development co‐operation. This article explores some factors potentially limiting the usefulness of decentralised aid management in the Danish case, and discusses certain intra‐organisational dynamics and extra‐organisational pressures influencing ‘donor effectiveness’.     

Expanding and Diversifying South Mediterranean Exports through Trade Facilitation

This article explores whether trade facilitation – i.e. improved and simplified trade procedures – could be an important part of the reform agenda of the Barcelona Process. Adopting a Southern perspective by focusing on exports to the European Union (EU) from non‐EU Mediterranean countries, it tests whether the efficiency of trade procedures affects (i) bilateral volumes of exports and (ii) the number of products exported. The findings suggest that trade facilitation could lead to substantially increased export volumes and export diversification.     

Young Children's Prosocial and Aggressive Behaviors and Their Experiences of Being Targeted for Similar Behaviors by Peers

Children's target experiences (as recipients of prosocial peer acts and victims of peer aggression) were investigated for their concurrent and longitudinal associations with prosocial and aggressive behavior. Forty‐four children (initially 22–40 months) were observed in naturalistic interactions with peers during a two‐month period for each of three consecutive years. Results revealed no consistency over time in children's experiences as targets for aggressive or prosocial peer acts, although there was some indication that altruistic target experiences may be stable from the end of the preschool period. Early behavior appeared to affect the way children were later treated by peers, but no support was found for the idea that early target experiences influence later behavior. Prosocial behavior was concurrently and longitudinally associated with prosocial target experiences. Aggressive behavior reduced the likelihood of children being targets of prosocial peer behavior and, over time, also of their being targets of peers’ aggression.     

The importance of social circumstances for Swedish women's subjective wellbeing

The importance of social circumstances for middle-age women's general subjective wellbeing (SWB) was investigated in a representative sample of Swedish women, aged 43 (N = 369). The results showed non-existent to moderate relationships between a number of social circumstances variables and general SWB. The strongest relationship was found between marital status and global life satisfaction. Being off work because of illness and household income were the strongest predictors of negative affect. A moderate relationship was found between a cumulated social disadvantage index and SWB, indicating that extreme differences in this index were related to fairly large differences in SWB. In person-oriented analyses, social circumstances were compared between women with a typical profile of generalised low SWB and women with a typical profile of generalised above-average SWB. The results indicated stronger relationships between SWB and the cumulative disadvantage index and unemployment than was the case in the variable-oriented analyses. When personality factors were controlled for, they eliminated nearly all relationships between the social circumstances variables and SWB, except for those between global life satisfaction and marital status or unemployment.     

Organization theory: Where are you?

This paper seeks to summarize the present state of organization theory. It takes as its starting-point the work of early organization theorists and demonstrates that their work has been challenged in basically four different ways, i.e. regarding the view on (a) individuals in organizations, (b) the interaction among individuals in organizations, (c) the relationship between organizations and their environments and (d) the technology of organizations. The implications of these qualifications are discussed with reference to recent literature. These discussions led to the conclusion that the number of research questions have increased rather than decreased over the years. Thus, a unified organization theory may be less valid today than at the beginning of the century. This circumstance, however, it is argued, should not be considered a regression but rather a sign of increasing insight.     

Do Political Institutions Shape Economic Policy?

Do political institutions shape economic policy? I argue that this question should naturally appeal to economists. Moreover, the answer is in the affirmative, both in theory and in practice. In particular, recent theoretical work predicts systematic effects of electoral rules and political regimes on the size and composition of government spending. Results from ongoing empirical work indicate that such effects are indeed present in the data. Some empirical results are consistent with theoretical predictions: presidential regimes have smaller governments and countries with majoritarian elections have smaller welfare‐state programs and less corruption. Other results present puzzles for future research: the adjustment to economic events appears highly institution‐dependent, as does the timing and nature of the electoral cycle.