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2051. Encouraging Job Advancement Among Low-Wage Workers: A New Approach

Author:
Harry J. Holzer
Publication Date:
05-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
While their employment rates have risen considerably, most former welfare recipients continue to earn very low wages. Similarly, the earnings of less-educated U.S. workers more broadly have also stagnated or fallen in recent years. Using a new dataset from the Census Bureau, some recent research suggests that low earners' advancement prospects are closely tied to the characteristics of the employers for whom they work. Employment in certain high-wage sectors and especially at firms that pay wage premiums and offer career ladders is strongly correlated with earnings gains over time for initially low earners. Job mobility often results in higher earnings gains than does staying in the same job. "Work first" approaches—such as immediate job placement for those on welfare—produce modest gains over time, while early work at a higher-wage employer or with a temp agency generates larger gains. Policymakers should therefore encourage better job placements for low earners as well as targeted training that is integrated with these placements. Policies to support the creation of more higher-wage jobs for the unskilled should be considered as well. Private labor market intermediaries can play important roles in both processes.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
United States

2052. Trade Agreements and Labor Standards

Author:
Theodore H. Moran
Publication Date:
05-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The National Academy of Sciences report, Monitoring International Labor Standards: Techniques and Sources of Information, shows that assessing compliance can be done thoroughly and transparently, allowing government officials, multilateral agencies, "socially responsible" investors, and nongovernmental organizations to identify where they differ on crucial aspects of the assessment process.
Topic:
International Relations, Foreign Policy, Government, and Political Economy

2053. "Offshoring" Service Jobs: Bane or Boon and What to Do?

Author:
Lael Brainard and Robert E. Litan
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Americans worry the economy is permanently shedding jobs and compressing wages, not only in manufacturing but also now in services once assumed immune to foreign competition. The digitization of information and expanded bandwidth abroad are enabling companies to outsource to low-wage countries services ranging from routine call center work to higher-value software programming, medical diagnosis, and research and analytical activities.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
America

2054. Global Economic Governance at a Crossroads: Replacing the G-7 with the G-20

Author:
Johannes F. Linn and Colin I. Jr. Bradford
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Finance ministers representing the Group of 7 (G-7) industrialized countries met in Boca Raton, Florida, in early February amid concerns about the weakening of the U.S. dollar. One factor in the dollar's decline is the U.S. trade deficit, which is partly due to the undervalued Chinese yuan. The involvement of China, which is not a G-7 member, illustrates both the glaring gap in global governance and the increasing economic and policy interdependence between industrial countries and major emerging market economies (EMEs). As one observer, referring to the Boca Raton meeting, put it, "China is the 800-pound gorilla and it isn't even part of the negotiations."
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
United States and China

2055. How to Balance the Budget

Author:
Isabel V. Sawhi and Alice M. Rivlin
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The federal government is spending about $500 billion a year more than it is raising in taxes. If nothing is done, that gap will widen to around $700 billion annually by 2014 and accelerate rapidly thereafter, as baby boomers begin to retire. Persistent deficits of this magnitude are likely to lower standards of living, make us dangerously dependent on the rest of the world, and pass on large fiscal burdens to future generations. Balancing the budget, while politically difficult, must be a priority. In an effort to stimulate debate over a compromise that would appeal to different groups, we present three ways to achieve balance over the next ten years. One option emphasizes spending cuts and leads to a smaller government. A second relies on tax increases and leads to bigger government. The third maintains government's current size, but makes it more effective, and contains a mix of spending reductions and tax increases, sufficient to achieve balance in ten years while preserving room for some high-priority new initiatives.
Topic:
International Relations, Foreign Policy, Government, and Political Economy

2056. The Insurance Industry in America

Author:
Robert E. Litan and Richard J. Herring
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Economists and insurance experts have studied the industry for many years and have developed a series of theoretical concepts to explain how insurance markets function. The prevailing view of the demand for insurance was summed up by one conference participant who noted that an economically rational consumer would understand that apart from certain tax benefits, when you buy insurance, you're making a bet with an insurance company, which the insurance comp any wins on average because it must cover administrative costs and earn a competitive return for its shareholders. From this perspective it makes sense to insure only against potential losses so large as to affect your standard of living. But that is not always how consumers behave.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
America

2057. Waive of the Future? Federalism and the Next Phase of Welfare Reform

Author:
Isabel V. Sawhill, Pietro S. Nivola, and Jennifer L. Noyes
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Determining the appropriate balance of power between the national government and the states is the "cardinal question of our constitutional system," wrote Woodrow Wilson in 1908. The question, he said, would resurface at "every successive stage of our political and economic development." A current manifestation of the time-honored debate focuses on whether to grant state governments additional discretion in managing and integrating a wide range of federally supported services that, in principle, can help the nation's poor earn a living rather than depend on public assistance.
Topic:
International Relations, Foreign Policy, Government, and Political Economy

2058. The Uncertain Future of the Telecommunications Industry

Author:
Robert E. Litan and Roger G. Noll
Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The U.S. telecommunications industry is riding a roller coaster. For most of the 1990s, the industry's future looked promising. The growth of Internet use, the promise of a broadband network, and a less restrictive regulatory environment that was expected following passage of the 1996 Telecommunications Act led industry experts to forecast rapidly growing demand for core network services along with high-margin business opportunities in an expanding array of new information services. The industry backed these expectations with massive investments to expand the capacity of both wireless and wire line networks as well as to facilitate the expected boom in high-speed data transmission.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
United States

2059. Traffic: Why It's Getting Worse, What Government Can Do

Author:
Anthony Downs
Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Rising traffic congestion is an inescapable condition in large and growing metropolitan areas across the world, from Los Angeles to Tokyo, from Cairo to Sao Paolo. Peak-hour traffic congestion is an inherent result of the way modern societies operate. It stems from the widespread desires of people to pursue certain goals that inevitably overload existing roads and transit systems every day. But everyone hates traffic congestion, and it keeps getting worse, in spite of attempted remedies. Commuters are often frustrated by policymakers' inability to do anything about the problem, which poses a significant public policy challenge. Although governments may never be able to eliminate road congestion, there are several ways cities and states can move to curb it.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
Tokyo and Los Angeles

2060. Libya: Security Is Not Enough

Author:
Michele Dunne
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
President George W. Bush has suggested that other nations— Iran, North Korea, Syria—follow the example of Libya, which increased its own security by ending links with terrorist groups and surrendering weapons of mass destruction and delivery systems. Some commentators are taking a second lesson from the Libya case: The United States will forgo its declared interest in democratization and reform if a country takes positive security-related steps and has enough petroleum to offer. The United States needs to correct this impression. It has the opportunity to do so through pursuing incremental political reform and human rights improvements in Libya even while relieving sanctions and developing relations. From pressing for repeal of limits on free expression to the prosecution of cases of torture, there are many ways Washington can use its leverage to urge long-term political change that will not come about through economic liberalization alone.
Topic:
Foreign Policy
Political Geography:
Africa, United States, Middle East, and Libya