Informal Work in Nonmetropolitan Pennsylvania1

Abstract It is well recognized that the informal economy—unregulated economic activities that generate real or in-kind income—features prominently in the day-to-day lives of many in the developing world. Researchers have begun to explore the informal economy in developed countries but this work has focussed primarily on urban areas to the neglect of rural areas. In this paper the nature and correlates of informal work in nonmetropolitan Pennsylvania are described through an analysis of survey data on 505 families. Results indicate that participation in informal activities is widespread, is not more typical of the poor, does not contribute greatly to family income on average but does help many poor families weather difficult economic times, is both economically and noneconomically motivated, and, net of other sociodemographic variables, is positively related to rurality of residence and formal labor supply.     

The role of trade unions in strategic planning

The changing climate of industrial relations has created a more puralist and complex state of relationships within the industrial sector of the economy. Trade unions and their employees are demanding and achieving a greater degree of participation in both the long and short term issues which affect company decisions in terms of either resource allocation or general policy. This article examines the role of trade unions within the context of strategic planning and argues that their increasing involvement is inevitable and their role should therefore be effectively recognized and their contribution to the development of corporate strategy ensured.     

Income Inequality across the Rural-Urban Continuum in the United States, 1970–2016*

The growth in macro-level income inequality in the United States is well established, but less is known about patterns of inequality at subnational scales and how they vary between and within rural and urban localities. Using data from the Decennial Census and American Community Survey, we produce estimates of within-county income inequality from 1970 to 2016 and analyze differences in inequality levels, the persistence of high (low) inequality, and populations' exposure to high (low) inequality across the rural-urban continuum. We find that income inequality has historically been higher in non-metropolitan than metropolitan counties, but inequality levels converged by 2016 due to growing inequality in metropolitan counties. Additionally, levels of inequality were generally persistent within counties over time, except that counties characterized by low inequality in 1970 were unlikely to remain as such in 2016. Third, non-trivial shares of the metropolitan population resided in low-inequality contexts in 1970, but virtually none of the U.S. population resided in such places by 2016. Residence in high-inequality counties is normative in rural and urban America. This statistical analysis provides an updated portrait of income inequality across the rural-urban continuum, and should spur additional research on stratification in rural America during an era of growing inequality.     

The elasticity of labor demand and the minimum wage

We show that, contrary to widespread belief, low-pay workers do not generally prefer that the minimum wage rate be increased until the labor demand is unitary elastic. Rather, there exists a critical value of elasticity of labor demand so that increases in the minimum wage rate make low-pay workers better off for higher elasticities, but worse off for lower elasticities. This critical value decreases with unemployment benefits and increases with workers’ risk aversion. We also show that in some countries the benefits for long-term unemployed are so low that workers would probably prefer that the minimum wage rate be decreased. I thank the anonymous referees for helpful suggestions.     

Automatic locally adaptive smoothing for tree-based set estimation

Tree-based methods similar to CART have recently been utilized for problems in which the main goal is to estimate some set of interest. It is often the case that the boundary of the true set is smooth in some sense, however tree-based estimates will not be smooth, as they will be a union of ‘boxes’. We propose a general methodology for smoothing such sets that allows for varying levels of smoothness on the boundary automatically. The method is similar to the idea underlying support vector machines, which is applying a computationally simple technique to data after a non-linear mapping to produce smooth estimates in the original space. In particular, we consider the problem of level-set estimation for regression functions and the dyadic tree-based method of Willett and Nowak [Minimax optimal level-set estimation, IEEE Trans. Image Process. 16 (2007), pp. 2965–2979].     

Nutrient intake in day workers and shift workers

Abstract

The 24-h dietary intake, nutritional status parameters and psychosomatic factors of two-shift, three-shift and day workers were compared. Estimations of the dietary intake (across a work cycle) were made by use of a nutrient database. No significant differences were found between the groups for a large number of nutritional variables: intake of energy; intake and percentage of energy from protein, fat, total carbohydrates and sucrose; intake of coffee; and intake and density of vitamins and minerals. Only minor differences were found between the groups with regard to the quantitative intake of alcohol and calcium, and with regard to the quality of the diet (percentage of energy from alcohol, density of calcium). The groups differed significantly with respect to attitude towards work hours (three-shift workers being most negative in their attitude) and sleep disturbances (shift workers being most negative). The three-shift workers were more evening-oriented and they had higher concentrations of glucose in their blood. It was concluded that work hours not related to nutritional intake—at least not when total amounts across time are considered. It was also concluded that work hours were not related to Body Mass Index or blood lipids: triglycerides, total cholesterol, LDL (low-density lipoprotein) cholesterol and HDL (high-density lipoprotein) cholesterol.     

Unemployment and mental health among white‐collar workers – a question of work involvement and financial situation?

We examine whether it is a psychosocial or an economic need for employment that affects mental health among the unemployed. The relevance of both aspects are examined, concentrating on two measures of each dimension. Two perspectives of work involvement – the degree of connection to working life and the perceived employment commitment – and two perspectives on financial situation – economic security and perceived economic concern – have been analysed, using empirical data collected by means of a cross-sectional survey of 1297 unemployed white-collar workers from the public sector in Sweden. The degree of connection to working life was not significantly linked to the mental health of the unemployed, although there was a strong link between the perceived employment commitment and mental health among this group. The stronger the perceived employment commitment, the poorer the state of the person's mental health. Perceived economic concern was also tightly linked to mental health: the greater the economic concern, the poorer the mental health. Economic security also played – at least, partly – a moderate but significant role. The results provide strong support for the existence of both a psychosocial need and an economic need for employment. The analysis demonstrates that it is the perceived assessed measures of work involvement and financial situation that are linked to mental health.     

Transfer of risk in the newsvendor model with discrete demand

In this paper we consider the transfer of risk in a newsvendor model with discrete demand. We view the newsvendor model as a leader/follower problem where the manufacturer (leader) decides the wholesale price and the retailer (follower) decides the quantity ordered. Taking a Pareto-optimal contract as a starting point, the manufacturer wishes to design a real option contract to enhance profits. A new real option contract is said to be feasible if both parties' expected profit is at least as great as in the original contract. When demand is discrete, there are usually infinite feasible contracts that yield maximum expected profits to the manufacturer. In the paper we show that either all, some or none of these real option contracts offer an improved position for the retailer.