Normalized measures of concavity and Ross’s strongly more risk averse order

The Arrow-Pratt (A-P) definitions of absolute and relative risk aversion dominate the discussion of risk aversion and defining “more risk averse”. Ross (Econometrica 49:621–663, 1981) notes, however, that being A-P more risk averse is not sufficient for addressing many important comparative static questions. Consequently he introduces “a new and stronger measure for comparing two agents’ attitudes towards risk…”. Ross does not provide a corresponding measure of risk aversion. This paper uses a normalized measure of concavity to characterize the Ross definition of strongly more risk averse on bounded intervals. Other properties and uses of these normalized measures of concavity are also presented.     

The Demand for Labor: An Analysis Using Matched Employer–Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?

This paper uses matched employee–employer LIAB data to provide panel estimates of the structure of labor demand in western Germany, 1993–2002, distinguishing between highly skilled, skilled, and unskilled labor and between the manufacturing and service sectors. Reflecting current preoccupations, our demand analysis seeks also to accommodate the impact of technology and trade in addition to wages. The bottom-line interests are to provide elasticities of the demand for unskilled (and other) labor that should assist in short-run policy design and to identify the extent of skill biases or otherwise in trade and technology.

The potential of child care tax credits to reduce poverty and welfare recipiency

As more and more mothers of young children enter the work force, interest in government financing of child care grows. The chief government subsidy for child care is the child care credit in the federal Internal Revenue Code. This is a nonrefundable credit and therefore provides benefits only to those with incomes high enough to require them to pay income tax. Yet of the $ 5.5 billion spent by the federal government on child care in 1986, this program accounted for $ 3.5 billion.This paper simulates the effects of expanding the child care tax credit by (1) doubling the reimbursement rates of the current credit; (2) making the credit refundable; and (3) both making the credit refundable and increasing its value for all families with income below $ 32,000.Results suggest that these changes will have modest effects on the income and earnings of mothers, and on the poverty gap and welfare recipiency. Costs, however, differ substantially. Doubling the value of the credit is far more expensive than either making the credit refundable or making it both refundable and more generous at the bottom of the income distribution. Making the credit refundable may cost taxpayers very little by leading to increases in hours worked and concomitant reductions in welfare payments.     

Trade Liberalization And Women’s Integration Into National Labor Markets: A Cross-Country Analysis

This paper examines the effects of trade liberalization and the risks associated with participation in the global trading system on women’s integration into national labor markets. Using data from 1970 to 1995, I identify two global determinants of the female share of national labor markets: trade openness and transnational corporate penetration. Several local predictors of women’s labor force participation are also identified. While a cross-sectional analysis indicates that women have been pulled into national labor markets as a result of neo-liberal economic reforms, more dynamic models show that these same forces can also lead to a preference for male, rather than female labor. Moreover, the analyses specify that the effects of trade openness and trade risk on female labor force participation are determined by position in the world-system and region. These results illustrate that arguments about the relationship between globalization and the feminization of the labor force, are too simplistic and neglect to account for the diverse consequences of global economic expansion on gender relations.     

Self-Exclusion as a Harm Minimization Strategy: Evidence for the Casino Sector from Selected European Countries

As the international gambling market continues to expand, determining effective approaches to prevent gambling-related problems becomes increasingly important. Despite a lack of in-depth research into its benefits, self-exclusion is one such measure already in use around the world in various sectors of the gambling industry. The present study is the first of its kind to examine the effectiveness of self-exclusion schemes in the casino sector in selected European countries. A written survey yielded a sample of N = 152 (self)-excluded gamblers. In addition to this cross-section analysis, a small sub-group (n = 31) was monitored over time by means of follow-up surveys carried out 1, 6, and 12 month(s) after the exclusion agreement came into force. The results reveal that the self-excluded individuals are typically under a great deal of strain and show a relatively pronounced willingness to change. However, this largely reaches its peak at the time the decision to self-exclude is made. From a longitudinal perspective, various parameters indicate a clear improvement in psychosocial functioning; a favorable effect that also starts directly after the exclusion agreement was signed. Finally, considering theoretical and empirical findings, possibilities for optimizing (self-)exclusion schemes will be discussed.     

What’s keeping you awake at night? Challenges facing trainers in South Africa

Corporate Trainers experience many organizational challenges that require new skills. This qualitative study sought to determine the challenges faced by South African Education Training and Development university students employed as trainers in corporate roles. Findings suggest that trainers require contextual and generic soft skills to meet the requirements of their jobs and that the term trainer embraces a variety of roles of different focus and different status. While there appear to be a common set of problems facing trainers irrespective of location, the interventionist skills and employment policies of the South African government have an important influence on activity in the organization.     

A Diamond-Stiglitz approach to the demand for self-protection

The existing research concerning the relationship between risk aversion and prudence and the demand for self-protection assumes that the loss variable follows a Bernoulli distribution, and that changes in the level of self-protection are mean preserving. The analysis here replaces these two very strong conditions with ones which are more general. When doing this, the method of analysis is also significantly modified. This modification includes representing a change in the level of self-protection using the procedure developed by Diamond and Stiglitz (Journal of Economic Theory 8:337-360, 1974) for representing a change in risk. This alternate representation allows the existing findings to be generalized considerably, and also simplifies the analysis.     

The division of labor and the market areas of manufacturing firms

A sociological framework for relating the division of labor to the market areas of manufacturing firms is reformulated. The growth of exchange and the dynamics of differentiation and integration are discussed as key processes that explain changes in these market areas from local to regional to multiregional to national and also the rise of industrial regions. A case study of nineteenth-century plow manufacturing in the United States illustrates the utility of the proposed framework.