Guestworker programs: Evidence from Europe and the United States and some implications for U.S. policy

Mounting concern in the United States over increased illegal migration from Mexico during the past decade has generated a heated policy debate and led to a number of proposals as to how the U.S. government should deal with the problem. Among these has been a call for a temporary worker program similar to the U.S.-sponsored Bracero Program (1942–1964) in which over 4 million Mexican workers were recruited to perform temporary agricultural labor in the southwestern United States. This article considers the implications of such a program by examining the social and economic effects of previous guestworker programs in the United States and western Europe from the perspective of both sending and receiving societies. Particular attention is paid to the efficacy of these programs in promoting temporary as opposed to long-term immigration of foreign workers as well as their developmental impact on sending countries.Now at 2405 Rayburn House Office Building, U.S. House of Representatives, Washington DC 20515.     

Using our brains to develop better policy

Current governmental practices often use a method called weight of evidence (WoE) to integrate and weigh different sources of information in the process of reaching a decision. Recent advances in cognitive neuroscience have identified WoE-like processes in the brain, and we believe that these advances have the potential to improve current decision-making practices. In this article, we describe five specific areas where knowledge emerging from cognitive neuroscience may be applied to the challenges confronting decisionmakers who manage risks: (1) quantifying evidence, (2) comparing the value of different sources of evidence, (3) reaching a decision, (4) illuminating the role of subjectivity, and (5) adapting to new information. We believe that the brain is an appropriate model for structuring decision-making processes because the brain's network is designed for complex, flexible decision making, and because policy decisions that must ultimately depend on human judgment will be best served by methods that complement human abilities. Future discoveries in cognitive neuroscience will likely bring further applications to decision practice.     

SELECTIVE ATTENTION AND LEARNING

What do we notice and how does this affect what we learn and come to believe? I present a model of an agent who learns to make forecasts on the basis of readily available information, but is selective as to which information he attends to: he chooses whether to attend as a function of current beliefs about whether such information is predictive. If the agent does not attend to some piece of information, it cannot be recalled at a later date. He uses Bayes' rule to update his beliefs given attended‐to information, but does not attempt to fill in missing information. The model demonstrates how selective attention may lead the agent to persistently fail to recognize important empirical regularities, make systematically biased forecasts, and hold incorrect beliefs about the statistical relationship between variables. In addition, it identifies factors that make such errors more likely or persistent. The model is applied to shed light on stereotyping and discrimination, persistent learning failures and disagreement, and the process of discovery.     

MOTIVATION AND MANAGEMENT CONTROL SYSTEMS

The importance of motivation in the managerial control process has been well noted in the accounting literature. However, despite its emphasis on motivation, the accounting literature says little about the specific relationships between motivation and accounting control systems. This paper will present an explicit, systematic statement of these relationships by means of a detailed comparison and synthesis of two previously unrelated models. One is a conventional accounting model of control, and the other is a comprehensive behavioral model of motivation. Our aim is to integrate behavioral concepts with accounting applications in order to work towards solutions of important problems involving motivation and management control systems.