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.     

Goal Ambiguity and Organizational Performance in U.S. Federal Agencies

In spite of numerous observations that government organizationshave high levels of organizational goal ambiguity that exertmajor influences on their other characteristics, few researchershave measured goal ambiguity and tested these frequent assertions.In previous research, we developed measures of four dimensionsof goal ambiguity: mission comprehension ambiguity, directivegoal ambiguity, evaluative goal ambiguity, and priority goalambiguity. Confirming hypotheses developed from the literatureon public organizations, the latter three variables showed relationsto such organizational characteristics as organizational age,financial publicness (proportion of funding from governmentallocations), and regulatory status. This article reports asecond analytical step of examining the relations between thegoal ambiguity dimensions and indicators of organizational performancebased on responses to the 2000 National Partnership for ReinventingGovernment Survey of federal employees. The performance variablesincluded managerial effectiveness, customer service orientation,productivity, and work quality. Regression analyses with numerouscontrol variables found that directive, evaluative, and prioritygoal ambiguity related negatively to managerial effectiveness.All four performance indicators showed significant negativerelationships with evaluative goal ambiguity and directive goalambiguity. The results provide further evidence of the viabilityof the new measures of goal ambiguity, support theory-basedbut previously untested hypotheses, and further indicate thefeasibility and value of analyzing goal ambiguity of governmentorganizations.     

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.