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31. Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat?

Author:
David Skarbek and Benjamin Powell
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Many studies have shown that multinational firms pay more than domestic firms in Third World countries. Economists critical of sweatshops have responded that multinational firms' wage data do not address whether sweatshop jobs are above average because many of these jobs are with domestic subcontractors. In this paper we compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide an above average standard of living for their workers.
Topic:
Economics, Human Welfare, Industrial Policy, and Third World

32. Institutional Foundations of Economic Freedom: A time-series cross-section analysis

Author:
Xavier de Vanssay, Vincent Hildebrand, and Zane A. Spindler
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Using time-series cross-section analysis, we provide additional empirical validation for the principal-agent model developed by Adserà, et al. (2003). In our innovation, efficient economic policy is proxied by “economic freedom” from the Fraser Institute database and “political institutions” are proxied by variables from the Database of Political Institutions. Our results suggest that the more credible the threat of removal from office, the more government officials will pursue efficient economic policies.
Topic:
Development, Economics, Government, and Political Economy

33. Prostitution and Sex Crimes

Author:
Kirby R. Cundiff
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
In this paper I examine the hypothesis that the frequency of rape is increased when another source of sex (prostitution) is limited or unavailable. To test this theory I regressed the rape rate in available OECD countries against a proxy for the availability of prostitution and, to remove the general propensity for violence in the society, against the homicide rate and the availability of prostitution. The one variable regression model was anti-correlated with borderline significance. In the multiple regression model the rape rate was shown to be correlated with the homicide rate and anti-correlated with the availability of prostitution. Both relationships were at above the 95% confidence level. It is estimated that if prostitution were legalized in the United States, the rape rate would decrease by roughly 25% for a decrease of approximately 25,000 rapes per year.
Topic:
Crime, Gender Issues, Human Rights, and Human Welfare
Political Geography:
United States

34. Individual Unemployment Accounts

Author:
Lawrence Brunner and Stephen M. Colarelli
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
The unemployment compensation system in the United States is out of date and in trouble. The system has four fundamental problems: (1) during recessions, it often cannot meet its financial obligations without federal aid or deficit spending; (2) it is out of step with the structural and cultural realities of the modern workforce; (3) it encourages layoffs and unemployment; and (4) it operates in isolation from other programs related to employment and financial security. We propose an alternative unemployment policy based on the individual unemployment account (IUA). The IUA would be a mandatory and portable individual trust to which the employer and employee contributed. It shifts control and responsibility from the employer and the state government to the employer and the employee, and it is compatible with the realities of a twenty-first-century economy. We begin by providing an overview of how the current unemployment insurance system works and discussing its problems. We then describe an alternative unemployment policy based on IUAs and discuss the benefits of such a policy.
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States

35. Privateering and National Defense: Naval Warfare for Private Profit

Author:
Larry J. Sechrest
Publication Date:
09-2001
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
Hans-Hermann Hoppe has argued that “the idea of collective security is a myth that provides no justification for the modern state” and “all security is and must be private” (1999, 27). Furthermore, Hoppe makes it abundantly clear that when referring to security he means protection against not only the small-scale depredations of the common criminal but also the massive aggressions perpetrated by nation-states. The claim that all legitimate defense functions can and must be privately supplied flies in the face of certain economic doctrines that are almost universally accepted. Almost all economists declare that there are some goods or services which will be provided in suboptimal quantities--or not provided at all--by private, profit-seeking firms. These “public goods” allegedly bring benefits to all in the society, whether or not any given individual bears his or her fair share of their cost. This “free riding” by some persons diminishes the profit incentive motivating private suppliers. Therefore, to make sure that such highly-valued goods are provided, the government serves as the principal, or often the only, supplier and taxes all the citizens in order to finance the production and distribution of the good.
Topic:
Government, Industrial Policy, and National Security

36. Constitutional Causes for Technological Leadership: Why Europe?

Author:
Jurgen G. Backhaus
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
In a paper circulated towards the end of 1997 under the title Why Europe?, Gordon Tullock poses a simple question and provides a tentative, yet provocative answer. The question is why the technological take off took place in Europe and in the 19th century when well into the 18th century other areas of the world, and notably China, looked much better poised for technological and scholarly leadership than Europe. His tentative answer turns on the constitutional composition of the landscape of political entities in Europe. This essay tries to provide some further underpinnings to aspects of Gordon Tullock's preliminary answer.
Topic:
Industrial Policy and Science and Technology
Political Geography:
China and Europe

37. Nation of Origin Bias and the Enforcement of Immigration Laws by the Immigration and Naturalization Service

Author:
Jim F. Couch, Brett King, William H. Wells, and Peter M. Williams
Publication Date:
06-2001
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
The Immigration and Naturalization Service (INS) is charged with the task of administering citizenship requests, providing for the proper documentation of temporary foreign workers, and apprehending illegal aliens. The apprehension of illegals, the most controversial duty of the INS, has placed the agency squarely in the headlines. The recent raid to seize Elian Gonzalez from his Miami relatives brought opprobrium upon the agency. The action, which involved 131 INS agents – some heavily armed – resulted in calls of discrimination from Miami's Cuban community. This paper examines the inconsistent enforcement patterns of the INS and attempts to determine what factors may account for INS activity. We conjecture that the agency is influenced by political pressure and may practice discrimination against certain illegals.
Topic:
Government and Migration
Political Geography:
United States and Cuba

38. Public Versus Private Initiative in Arctic Exploration: The Effects of Incentives and Organizational Structure

Author:
Jonathan M. Karpoff
Publication Date:
06-2000
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
From 1818 to 1909, 35 government and 57 privately-funded expeditions sought to locate and navigate a Northwest Passage, discover the North Pole, and make other significant discoveries in arctic regions. Most major arctic discoveries were made by private expeditions. Most tragedies were publicly funded. By other measures as well, publicly-funded expeditions performed poorly. On average, 5.9 (8.9%) of their crew members died per outing, compared to 0.9 (6.0%) for private expeditions. Among expeditions based on ships, those that were publicly funded used an average of 1.63 ships and lost 0.53 of them. Private ship-based expeditions, in contrast, used 1.15 ships and lost 0.24 of them. Of public expeditions that lasted longer than one year, 47% were debilitated by scurvy, compared to 13% for private expeditions. Although public expeditions made some significant discoveries, they did so at substantially higher cost (as measured by crew size or vessel tonnage) than private discoveries.
Topic:
Environment, International Law, and Sovereignty

39. Cooption and Repression in the Soviet Union

Author:
Dmitriy Gershenson and Herschel I. Grossman
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
The Soviet ruling elite, the nomenklatura, used both cooption and political repression to encourage loyalty to the communist regime. Loyalty was critical both in defusing internal opposition to the rule of the nomenklatura and in either deterring or defeating foreign enemies of the Soviet Union. The cost of coopting people into the communist party was a decrease in the standard of living of members of the nomenklatura, whereas the cost of political repression was the danger that members of the nomenklatura would themselves be victimized. We assume that the nomenklatura determined the extent of cooption and the intensity of political repression by equating perceived marginal benefits and marginal costs.
Topic:
Cold War and Government
Political Geography:
Russia and China