Unions and the Welfare Impact of Foreign Direct Investment — A Wisdom Extension

Abstract. This paper extends the recent literature, e.g. Leahy and Montagna (Economic Journal 110: 80–92, 2000), in relation to the link between unionization, inward foreign direct investment (FDI) and country welfare in an oligopoly market structure. It is shown that the common results, that unions may reduce welfare under FDI while multinational enterprises (MNEs) will strictly trade off union wages at each location, are generally driven by the assumption relating to the scope of the bargaining with the union, namely the ‘right to manage’ (RTM). In particular, our extension to efficient bargaining (EB) demonstrates that union power may increase welfare in the presence of FDI, while the MNEs’ choice between FDI and exports will include profit‐sharing arbitrage with unions, in addition to the usual wage comparison considerations.     

Factors associated with long-term benzodiazepine use among elderly women and men in Quebec

The goal of this study was to compare factors associated with long-term benzodiazepine use by elderly women and men (n = 1701) who participated in the Quebec Health Survey (QHS). Data from the 1998 QHS were linked with data from the administrative files of the Régie de l'assurance maladie du Québec. Results showed that elderly women were more at risk than men for long-term benzodiazepine use. Results of the multivariate logistic regression did not show a significant difference between women and men on any of the risk factors studied. Other factors such as elderly and physician attitudes deserve further study to explain differences in long-term benzodiazepine use between elderly women and men.     

Federal research spending and innovation in the U.S. economy

This paper provides a better understanding of federal funding and its impact on the production process of patentable ideas in the U.S. economy. In this study, I develop an expansion of the Marshallian Macroeconomic Model (Ngoie and Zellner, 2012, forthcoming), which is applied to the U.S. science sector and, among other things, compare the return of federal spending on the three components of research activities mainly (1) basic research, (2) applied research, and (3) development research. The findings presented in this study clearly outline that federal funding channeled toward applied research carries a much larger return than research funding assigned to basic or development research. The return on research spending is measured using the number of patents awarded. Furthermore, this study investigates the transformation of patented ideas into new products and the related implications on sectoral economic growth.     

The Impact of Extending Working Lives on Youth Employment in Great Britain

ABSTRACT

The article investigates the association between youth and older workers’ employment participation in the United Kingdom using yearly data provided by the Labor Force Survey. Presenting a short state of the art, the paper shows that, with few exceptions, empirical analyses usually assume that increasing the labor market participation of the older workers does not affect negatively youth employment. Nevertheless, testing several variables and three different statistical models, the empirical part of the article nuances this evidence. The association between youth employment participation and older workers’ employment participation tends to be significantly after controlling for public policy outcomes.     

WebStress: A web interface to explore a multidatabase bibliographic corpus on occupational stress

A bibliographic study on a multidisciplinary subject, such as occupational stress, requires a multidatabase query facility. Given this, we searched eight databases belonging to different fields (medicine, psychology, etc.) and from different countries. Thus, more than 26000 references on occupational stress were gathered. A bibliographic corpus of this sort is unusable because of the heterogeneous format of the records and the number of duplicate entries. Considering the limitations of commercial programs, we have developed a system, called WebStress, for reformatting the data and removing duplicates. The huge number of references and the research needs of updating and searching have necessitated the addition of several other functions to WebStress. Therefore WebStress comprises a web interface that makes it possible to search the corpus with advanced features (using clustering, a specialized thesaurus on stress and Boolean queries). In addition to the usual bibliographic queries on a specific database such as Medline, WebStress provides bibliometric analysis of the corpus, which might contribute to a detailed analysis on occupational stress in order to highlight the networks of researchers and to find the main topics studied in this area. WebStress is not yet available to researchers in general. It is being further developed, and also permission needs to be obtained from the eight commercial bibliographic databases that it consults.     

Arrow’s theorem of the deductible: Moral hazard and stop-loss in health insurance

The logic of Arrow’s theorem of the deductible, i.e. that it is optimal to focus insurance coverage on the states with largest expenditures, remains at work in a model with ex post moral hazard. The optimal insurance contract takes the form of a system of “implicit deductibles”, resulting in the same indemnities as a contract with full insurance above a variable deductible positively related to the elasticity of medical expenditures with respect to the insurance rate. In a model with a predefined ceiling on expenses, there is no reimbursement for expenses below the stop-loss amount. One motivation to have some insurance below the deductible arises if regular health care expenditures in a situation of standard health have a negative effect on the probability of getting into a state with large medical expenses.     

Investigating non-gamblers: another step toward identifying potential protective factors against problem gambling

In this article it is argued that knowing more about non-gamblers could help researchers discover novel protective factors against problem gambling. The purpose of this study was to therefore to identify the sociodemographic, psychological and behavioural characteristics that are more prevalent among non-gamblers than among gamblers. Results from a logistic regression analysis with a representative sample of adults in the province of Quebec (Canada) revealed 12 significant predictors of non-gambling status. Among these predictors, seven were sociodemographic variables (i.e. birthplace, mother tongue, childhood religion, civil status, education, family income and family history of gambling problems), four were psychological variables (i.e. perception of one's financial situation relative to others, optimism concerning one's financial situation, beliefs concerning chances of winning, and suicidal ideation) and one variable was behavioural (i.e. church attendance). Further research including different types of variables and a common operational definition of non-gamblers is necessary to better understand this subgroup and its potential for possessing protective factors against gambling problems.