The employment contract: A test of the transaction cost theory

This paper tests some predictions derived from Williamson's transaction cost theory of the organization of work, which holds that the form of the employment relationship is determined largely by the idiosyncrasy of work—that is, the nature of skills and knowledge used in production. It examines the occurrence of theoretically relevant provisions in collective bargaining agreements in the United States and finds they are related to a contract-level proxy for idiosyncrasy (based on bargaining structure) as predicted by the theory. An analysis of an individual-level variable, the difficulty of finding a comparable job, provides some additional support. Finally, several alternative explanations of the results are considered, and it is argued that none are consistent with the evidence. The analysis thus finds strong, if necessarily provisional, support for the theory.     

Some quantitative concepts of value and utility from a utilitarian point of view

This paper clarifies and interprets some basic quantitative concepts of value, utility and utility function from a utilitarian point of view. First, I discuss the question as to whether value is objective or subjective. I hold that value is subjective and statistical in nature (although from the various subjective values of a certain object a norm can usually be obtained). Second, I emphasize the distinction between use value and exchange value in relation to utility. Third, I propose a law of diminishing incremental interest, which refers to the incremental (marginal) utility of money. Fourth, I identify the utility of money with the von Neumann-Morgenstern utility. Fifth, I question the necessity of the usual normalization of utility functions and the restricted linear transformation (and the consequent concept of strategic equivalence). Sixth, I discuss in detail the terminal values and utilities of a utility function from a philosophical rather than mathematical point of view, particularly the boundedness of a utility function and the magnitudes of V ₀ and U ₀. Finally, I conclude that, in order to be able to have interpersonal comparisons of utility, utility should have the same dimension as value rather than no dimension, and the normalization problem should be reconsidered in the light of terminal values and utilities.     

A review of research on the happiness measures: A sixty second index of happiness and mental health

Eighteen years of research using the Happiness Measures (HM) is reviewed in relation to the general progress of well-being measurement efforts. The accumulated findings on this remarkably quick instrument, show good reliability, exceptional stability, and a record of convergent, construct, and discriminative validity unparalleled in the field. Because of this, the HM is offered as a potential touchstone of measurement consistency in a field which generally lacks it.     

On "being a prostitute"

The book "On Being a Prostitute" (Perkins & Bennett, 1985) is a valuable contribution to the sociology of deviance and sexual ideologies. However, comprehensive as it is, the book presents certain omissions and flaws, with implications for both is empirical data and theoretical underpinnings. In focusing on male (homoerotic) prostitution, and drawing upon Bennett's (1983) "Twenty-Ten" survey (which forms the main empirical base of that aspect of the book), I argue that certain categories of male prostitutes have been excluded. These omissions, I suggest, were necessary to allow Bennett's hypothesis that most male prostitution derives from economic necessity--a recurrent economic determinism reminiscent of Havelock Ellis (1906/1936), and somewhat contrary to a broader structural approach (see Mathews, 1983).     

Demographics: people and markets

The basics of demography are now basic to us business as well. Demographics combine demographic data with socioeconomic and geographic factors to help business and other managers know the market for their goods and services. This pamphlet explains market, product, and site analyses, discusses data sources and resources, and includes case studies involving major corporations. Post-war population trends have had an enormous impact on consumer and labor markets, bringing home to business the importance of taking advantage of demographic shifts. Advances in computerized access to data describing changes and increased consciousness of their economic significance has spurred the application of demographic knowledge by managers and the growth of the demographics information industry. The pamphlet describes the resources and methods of demographics including the creation and use of demographic data products.     

Manpower export and economic development: evidence from the Philippines

The Philippines has actively pursued a policy of labor export with the expectation that it would relieve unemployment, augment the supply of skills, and relieve pressure on the balance of payments. It was also anticipated that the inflow of overseas workers' remittances would translate into increased investment, the sine qua non for economic development. However, recent evidence casts some doubt on the extent to which these goals have been achieved. Particularly in the areas of skill formation, there appears to be a significant discrepancy between anticipated and actual outcomes. Indeed, it appears that the labor export may reduce the supply of skills available since 1) many skilled and educated workers are taking jobs requiring skill levels lower than they possess, and 2) a large majority of returning workers do not want to take up employment in those occupations reliant on the skills they used abroad. There is conflicting evidence regarding the impact of labor export on Philippine industries. There is some anecdotal evidence that a few industries have suffered because of a loss of key workers. In general, however, it appears that unemployment is still quite significant in those occupations most heavily represented in labor export. Despite this observation, it may still be true that labor emigration is selective of only the best workers, implying a decline in quality of the work force and possibly productivity in certain industries. The export of professional, technical, and managerial workers is another issue. Unless it can be shown that these workers are in excess supply, it is not advisable to expand the number going abroad. Although their salaries may be higher, and hence their remittances greater, their loss can impose costs on indigenous industries well in excess of a any marginal gains. Remittances from overseas workers do constitute a relatively significant source of foreign exchange. However, the translation of remittances into investment has been restrained by the very low propensity of remittance recipients and returnees to undertake productive investment and by the diversion of remittances from formal banking channels into informal channels. Remittances which are being channeled through the formal banking sector constitute a potentially important source of loan funds, as well as providing a potential stimulus to indigenous industry.     

The protection of migrant workers and international labour standards

International labor standards take the form of Conventions and Recommendations that embody the agreements reached by a 2/3 majority of the representatives of Governments, Employers, and Workers of International Labour Office (ILO) member states. Originally designed to guard against the danger that 1 country or other would keep down wages and working conditions to gain competitive advantage and thereby undermine advances elsewhere, international labor standards have also been inspired by humanitarian concerns--the visible plight of workers and the physical dangers of industrialization and by the notion of social justice, which embraces wellbeing and dignity, security, and equality as well as a measure of participation in economic and social matters. ILO standards apply to workers generally and therefore also to migrant workers, irrespective of the fact that the general standards are complemented by standards especially for migrant workers. The social security protection of migrant workers has been dealt with in ILO instruments primarily from the angle of equality of treatment but also from that of the maintenance of acquired rights and rights in course of acquisition, including the payment of benefits to entitled persons resident abroad. The ILO Conventions on migrant workers and the Recommendations which supplement them deal with practically all aspects of the work and life of non-nationals such as recruitment matters, information to be made available, contract conditions, medical examination and attention, customs, exemption for personal effects, assistance in settling into their new environment, vocational training, promotion at work, job security and alternative employment, liberty of movement, participation in the cultural life of the state as well as maintenance of their own culture, transfer of earnings and savings, family reunification and visits, appeal against unjustified termination of employment or expulsion, and return assistance. ILO's supervisory mechanism consists basically of a dialogue between the ILO and the Government that is responsible for a law, regulation, or practice alleged to be in contravention of principles it voluntarily accepted. The control machinery is often set in motion by workers' organizations. The UN General Assembly is currently elaborating a new instrument designed to cover both regular and irregular migrant workers and their families.     

From making to being the excuse: An analysis of deception and verbal/nonverbal issues

Excuse-making is defined, and the issues of deception and verbal/nonverbal presentations are discussed in regard to the excuse process. Subsequently, the deception and verbal/nonverbal issues are described in greater detail in the context of whether the excuse occurs temporally after a negative outcome (retrospective), before a negative outcome (anticipatory), or as part of the characterological makeup of the person (incorporated). Going from retrospective to anticipatory to incorporated excuses, it is concluded that the role of nonverbal factors increases. Likewise, in the progression from making to being the excuse, it is argued that self- and other-deception also become more pervasive.     

The developmental implications of migration from and between small island nations

This article discusses the role of migration in relieving population pressures, thus making continuing development possible, using small nations in the Caribbean and the South Pacific as examples. The Caribbean islands and many Pacific islands have used out-migration to ease population pressures in this century. Surplus labor has been emerging in various Caribbean nations, independent of the international marketing problems of plantation agriculture. Rural populations alienated from plantations have had to make do on questionable and/or remote land. Population surpluses appear to originate in rural areas, but little evidence exists to suggest that those surpluses are the basis for the emigration patterns of the Caribbean islands. Emigration does not solve population problems because when ambitious, skilled workers leave their country, their actions have little to do with the existence of domestic surplus labor and their leaving may do little to facilitate domestic labor absorption. Thus, if mini-states wish to sustain their hopes of economic expansion, they must find the means to employ their surplus labor. Since mainly skilled migrants leave, their going may actually slow development and retard opportunities for labor absorption. Population movements internal to the Caribbean region may further complicate surplus labor and/or population problems. If protective entry requirements impede normal inter-island relations, they may interfere with developmental processes. In general, migration is not a feasible strategy for population control for small island nations. While temporary migration has a more positive impact than other forms of migration, problems do exist. For example, temporary migration 1) can impose significant economic costs on the source-country, and 2) may result in the source country being unable to capitalize on its initial investment in training and education of temporary migrants. In conclusion, import substitution through cooperation between small island nations, production for export where feasible, and more attention to more sophisticated international service linkages hold a better prospect for material progress than relying on the export of surplus populations.