The Non-Existence of the Labor Demand/Supply Diagram,and other Theorems of Institutional Economics

The most famous and influential diagram in modern (neoclassical) labor economics is the model of wage determination by supply and demand. Using concepts and ideas from institutional economics, I argue that the theory of a perfectly competitive labor market is logically contradictory and, hence, the demand/supply diagram cannot exist on the plane of pure theory. Four other fundamental theorems concerning labor markets are also derived, as are implications about the theoretical foundation of the field of industrial relations and the economic evaluation of labor and employment policy.

Hand force of men and women over 65 years of age as measured by maximum pinch and grip force

This cross-sectional study aimed to assess the impact of age and gender on 4 measures of grip and pinch force of well elderly community dwellers and to provide normative values. The hypotheses were that age and gender affect pinch and grip force and that these 2 factors might interact. Hand strength of 224 seniors 65-92 years old was tested. Grip and pinch force decreased in successively older age groups past 65 years. Men's grip force exceeded that of women in all age groups. Men's hand-force decline was steeper than that of women over successive age groups, suggesting that gender differences in force decreased with age. Trends were the same for all 4 types of grip- and pinch-force measurement but were most clearly visible in grip and key-pinch force. Norms were provided for seniors age 65-85+ years in 5-yr increments.     

Identifying Factors that Influence State-specific Hunger Rates in the U.S.: A Simple Analytic Method for Understanding a Persistent Problem

An existing measure of food insecurity with hunger in the United States may serve as an effective indicator of quality of life. State level differences in that measure can reveal important differences in quality of life across places. In this study, we advocate and demonstrate two simple methods by which analysts can explore state-specific contributions to state-specific hunger rates. Using existing survey data and the U.S. Department of Agriculture measure of household food insecurity with hunger, we illustrate how comparing group-specific hunger rates within states and how the demographic method of standardization can both be used to assess how a state’s population and local characteristics influence hunger rates and other quality of life indicators associated with hunger.     

Political legitimacy versus economic imperatives in system transformation: Hungary and East Germany 1990–93

East European policy makers currently face critical trade-offs between economic imperatives and system legitimacy imperatives. Economic imperatives, derived from the goal of medium term prosperity, demand rapid privatization and marketization. System legitimacy imperatives demand measures to minimize the unemployment, wage cuts and income inequality resulting in the short term from privatization and marketization. In 1989–90 East Germany and Hungary appeared to face the least harsh trade-offs and to be best placed of the ex-communist countries to achieve successful system transformation. Unlike their East European neighbours, neither had to develop democratic and market institutions from scratch. East Germany would import the Federal Republic's political system and market institutions. Hungary already had organized political parties and had been developing market institutions since 1968. Using panel survey data, the paper shows that, despite considerable economic achievements since 1990, there is widespread personal dissatisfaction and distress, and the legitimacy of democratic and market institutions is weak. The main data sources are the Hungarian Socio-Economic Panel (1992–5777 individuals in 2888 households) and the East German segment of the German Socio-Economic Panel (1990–4453 individuals in 2179 households).     

Dimensions of mental health: Life satisfaction,positive affect,anxiety and depression

Psychological well-being and psychological distress are often regarded as distinct, if not orthogonal dimensions of mental health. Based on analyses in this paper, we consider the distinction misleading. Four dimensions seem worth measuring in general population surveys: life satisfaction, positive affect, anxiety and depression. Furthermore, one of the well-being dimensions, life satisfaction, is quite strongly correlated with a distress dimension, depression. A person is unlikely to be both satisfied with life and depressed, but may be satisfied and anxious. The paper is based on convergent validity (exploratory and confirmatory factor analyses) and divergent validity assessments of a range of widely used measures, which were included in the Victorian Quality of Life Panel Survey, 1987.     

How does POSSLQ measure up? Historical estimates of cohabitation

We use March Current Population Survey (CPS) data from 1977 to 1997 to produce a new historical series of indirect cohabitation prevalence estimates. We compare our new estimates with those produced by the traditional method and evaluate the new estimates. We then compare the indirect estimates with the new direct estimates to investigate whether biases exist in the indirect estimates. Our findings indicate that the traditional indirect method of estimating cohabitation prevalence underestimates cohabitors in different subpopulations, especially among those with children. We also find that the new indirect measure produces relatively unbiased estimates of cohabitors' characteristics.     

Births,debts and mirages: The impact of the Higher Education Contribution Scheme (HECS) and other factors on Australian fertility expectations

This paper uses survey data to examine the effect of the income-contingent charge mechanism, the Higher Education Contribution Scheme (HECS), and other demographic and attitudinal variables on fertility expectations in Australia over the recent past. HECS requires former Australian students to fund some of the costs of higher education through the repayment of interest-free loans made by the Australian government. Its defining characteristic is that repayments only occur when and if students future incomes exceed a particular level. Since its introduction in 1989, media and other populist commentary has suggested that HECS has had unanticipated effects on behaviour. Most recently, attention has focused on the effects of HECS on fertility, with some arguing that university graduates are delaying births, and having fewer children, because of their HECS debts. This paper demonstrates that the introduction of HECS has had no discernible impact on Australian fertility rates, nor on the number of children that people expect to have. However, education, age and a number of attitudinal factors are associated with significant differences in fertility expectations.     

A Facet Theory Approach to Examining Overall and Life Facet Satisfaction Relationships

Multiple Discrepancies Theory – MDT – (Michalos, 1985)has been established as a leading theory of lifesatisfaction, on the basis of which numerous studieson satisfaction have been designed. Previous researchexamining overall and life facet satisfactionrelationships combined various approaches tounderstanding the interrelationships between thevariables by which individuals measure theirsatisfaction in life. Recently, Lance, Mallard andMichalos (1995) extended the scope of study byexamining the theoretical relationship between overalllife satisfaction (OLS) and satisfaction in variouslife facets (life facet satisfaction – LFS) among1,354 US college students. The present study extendsMDT one step further by applying a Facet Theory (FT)statistical approach to our understanding of the sameset of data. In this way a holistic model emerges,presenting not only the relationship between OLS andLFS, but also the interrelationships between and amongeach and every facet. Results of this analysis arepresented through the correlation matrix and SmallestSpace Analysis (SSA) diagrams. These results arecompared to Levy and Guttmans (1975) figures in theirstudy on the structure of well-being; although the twostudies examined different populations and askeddifferent questions, the final structural organizationof the data is strikingly similar.     

Internal Migration of the Foreign-Born: Population Concentration or Dispersion?

Recent analyses of the 1990 census migration data have pointed to the different demographic effects of internal migration and immigration. States and metropolitan areas either have large population gains through immigration or internal migration, but rarely both, leading to what has been labeled as an increasing demographic balkanization of the U.S. population. This paper explores the proposition that the internal migration of the foreign-born (pre-1985 arrivals) is likely to reinforce the demographic effects of immigration. Analysis is based on the five-percent Public Use Microdata file of the U.S. Census, with the demographic effects evaluated at both the state and metropolitan area levels. Distinctions were also made between nineteen separate national origin groups, increasing the detail of the analysis. Despite high internal migration rates and large net migration, there was little change in the overall distribution and concentration of the foreign-born population between 1985 and 1990. More important, however, distinctions were found across the national origin groups. While secondary migration leads to dispersion among some groups, other groups were becoming increasingly concentrated, suggesting that demographic balkanization of the American population is more variable than the literature would suggest.     

Combining Happines’s and Suffering in a Retrospective View of Anchor Periods in Life: A Differential Approach to Subjective Well-Being

The intersection of dimensions of subjective well-being (SWB) generates SWB types. We delineated SWB types by cross-tabulating happiness and suffering ratings that participants attributed to outstandingly meaningful periods in their life referred to as anchor periods. A sample of 499 older Israelis (age 58–94) was queried about two positive periods (the happiest, the most important) and two negative periods (the most miserable, the most difficult). A variety of variables discriminated between the more frequent congruous types of Happy (high happiness and low suffering) and Unhappy (low happiness and high suffering), but also presented the incongruous types of Inflated (high happiness and high suffering) and Deflated (low happiness and low suffering) as discriminable. Thus, women were more likely to be Inflated whereas men were more likely to be Deflated; low education related more to Happy in the happiest period and to Unhappy in the negative periods; present life satisfaction related more to Happy than to Unhappy in the positive, but not in the negative, periods; and Holocaust survivors were more likely to be Deflated and Unhappy in the negative, but not in the positive, periods. The study supported a differential perspective on SWB within people’s narratives of their lives. An erratum to this article is available at .