BEYOND EDUCATION AND FAIRNESS: A LABOR MARKET TAXATION MODEL FOR THE GREAT GATSBY CURVE

Applied researchers have been drawn to models that attribute the demonstrated cross‐country differences in intergenerational income transmission to government failures to invest in the human capital of poor children. To highlight another potential mechanism, the disincentive effects of labor market taxation and redistribution, we present a simple model that can explain cross‐country differences in intergenerational mobility and other previously observed empirical patterns. Empirical tests using data on income mobility, tax rates, and public expenditures largely support the model predictions. We conclude that the common presumption that intergenerational mobility largely measures fairness or opportunity, and the resultant policy recommendations, are premature. (JEL D31, J24, J62)     

Bringing Aid Management Closer to Reality: The Experience of Danish Bilateral Development Cooperation

In 2003, the Danish Ministry of Foreign Affairs undertook a decentralisation of the management of bilateral aid to the embassies in major partner countries. However, while decentralisation appears to live up to the principles of the Paris Declaration on Aid Effectiveness, the specific delegation of responsibilities as well as the political context of aid management may jeopardise the intended contribution to effective development co‐operation. This article explores some factors potentially limiting the usefulness of decentralised aid management in the Danish case, and discusses certain intra‐organisational dynamics and extra‐organisational pressures influencing ‘donor effectiveness’.     

The importance of social circumstances for Swedish women's subjective wellbeing

The importance of social circumstances for middle-age women's general subjective wellbeing (SWB) was investigated in a representative sample of Swedish women, aged 43 (N = 369). The results showed non-existent to moderate relationships between a number of social circumstances variables and general SWB. The strongest relationship was found between marital status and global life satisfaction. Being off work because of illness and household income were the strongest predictors of negative affect. A moderate relationship was found between a cumulated social disadvantage index and SWB, indicating that extreme differences in this index were related to fairly large differences in SWB. In person-oriented analyses, social circumstances were compared between women with a typical profile of generalised low SWB and women with a typical profile of generalised above-average SWB. The results indicated stronger relationships between SWB and the cumulative disadvantage index and unemployment than was the case in the variable-oriented analyses. When personality factors were controlled for, they eliminated nearly all relationships between the social circumstances variables and SWB, except for those between global life satisfaction and marital status or unemployment.     

Interaction Theory in the Federal Republic of Germany: Development,Current Position,Themes, and Problems

After the end of World War II in West Germany, action and interaction theories and phenomenological sociology occupied only fringe positions. At the end of the 1960s, criticism of the prevalent neopositivistic research methodology, systems theory, and the rapidly spreading critical theory increased. This, coupled with the positive reception given symbolic interactionism and ethnomethodology from the United States, caused interaction theories to flourish. Today they are among the four or five main schools of thought in West German sociology. In methodological work, the “interpretative” or “communicative” social research of the time developed the narrative interview and life history method. Group discussion and participant observation were also used for interactionist social research. A survey of the subjects interactionists have covered in their research shows how widely interaction theory has been applied. The main themes of current interaction theory are: (1) conceptualizing the difference between unpremeditated behavior and meaningful action, (2) formulating a theory that covers both “structure” and “action”, and (3) developing an interactionist macro theory. The future of interaction theory is analyzed and assessed optimistically.     

Organization theory: Where are you?

This paper seeks to summarize the present state of organization theory. It takes as its starting-point the work of early organization theorists and demonstrates that their work has been challenged in basically four different ways, i.e. regarding the view on (a) individuals in organizations, (b) the interaction among individuals in organizations, (c) the relationship between organizations and their environments and (d) the technology of organizations. The implications of these qualifications are discussed with reference to recent literature. These discussions led to the conclusion that the number of research questions have increased rather than decreased over the years. Thus, a unified organization theory may be less valid today than at the beginning of the century. This circumstance, however, it is argued, should not be considered a regression but rather a sign of increasing insight.     

THE ORGANIZATION OF THE INNOVATION INDUSTRY: ENTREPRENEURS,VENTURE CAPITALISTS,AND OLIGOPOLISTS

We construct a model where incumbents can either acquire basic innovations from entrepreneurs, or wait and acquire developed innovations from entrepreneurial firms supported by venture capitalists. We show that venture‐backed entrepreneurial firms have an incentive to overinvest in development vis à vis incumbents due to strategic product market effects on the sales price of a developed innovation. This will trigger preemptive acquisitions by incumbents, thus increasing the reward for entrepreneurial innovations. We also show that venture capital can emerge in equilibrium if venture capitalists have cost advantages, or if development is associated with double moral hazard problems. (JEL: G24, L1, L2, M13, O3)     

Quality of life,intelligence and mood

We investigated the relationship between quality of life (QOL), general ability and current mood in a sample of young men (N=269, mean age 24.9 years). Intelligence (verbal, spatial and mathematical) and technical ability were uncorrelated with QOL. Current mood such as pleasure, anger, sadness, boredom correlated firmly with QOL. The paper concludes that intelligence seems to be a variable of minor interest for QOL-studies.