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681. Do Affluent Countries Face an Incomes-Jobs Tradeoff?

Author:
Lane Kenworthy
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Institute for European Studies at Cornell University
Abstract:
A commonly-held view suggests that affluent nations face a tradeoff between incomes and jobs. According to this view, in the United States pay for workers at the bottom of the earnings distribution (relative to those in the middle) is very low and government unemployment-related benefits (the "replacement rate") are stingy, but this facilitates the creation of lots of new jobs and encourages such individuals to take those jobs. The result is a high rate of employment and low unemployment. In much of Western Europe relative pay levels are higher for those at the bottom and benefits are more generous, but this is said to discourage job creation and to reduce the willingness of the unemployed to accept low-wage jobs. The consequence is low employment and high unemployment. I undertake a comparative assessment of this tradeoff view, based on pooled cross-section time-series analyses of 14 OECD countries in the 1980s and 1990s. The findings suggest that greater pay equality and a higher replacement rate do reduce employment growth in low-productivity private-sector service industries and in the economy as a whole. However, these effects are relatively weak. The results point to a variety of viable options for countries wishing to maintain or move toward a desirable combination of jobs and equality.
Topic:
Government
Political Geography:
United States and Europe

682. Immigration in the United States

Author:
Philip L. Martin
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
This chapter summarizes migration patterns, puts the immigration and integration challenges facing the US in a global context, reviews the evolution of US immigration and immigration policy, and then focuses on some of the immigration and integration issues being debated early in the 21st century. Immigration is likely to continue at current levels of 900,000 legal and 300,000 unauthorized a year, so that Americans will, in the words of former Census director Kenneth Prewitt, "redefine ourselves as the first country in world history which is literally made up of every part of the world."
Topic:
Government, Human Welfare, and Migration
Political Geography:
United States

683. The Meanings of Palestinian Reform

Publication Date:
11-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Since U.S. President George W. Bush's 24 June 2002 statement on the Israeli-Palestinian conflict, Palestinian reform has emerged as a key ingredient in Middle East diplomacy. In his statement, the president publicly identified “a new and different Palestinian leadership” and “entirely new political and economic institutions” as preconditions for the establishment of a Palestinian state. In early July, the Quartet of Middle East mediators (the European Union, Russian Federation, United Nations, and United States) established an International Task Force for Palestinian Reform “to develop and implement a comprehensive reform action plan” for the Palestinian Authority (PA). The September 2002 statement by the Quartet underscored reform of Palestinian political, civil, and security institutions as an integral component of peacemaking. The three phase-implementation roadmap, a U.S. draft of which was presented to Israel and the Palestinians by U.S. Assistant Secretary of State William Burns in October, provided details on this reform component.
Topic:
Civil Society, Government, and Politics
Political Geography:
Russia, United States, Europe, Middle East, Israel, Palestine, Arabia, and United Nations

684. Iraq Backgrounder: What Lies Beneath

Publication Date:
10-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
This background report reviews the mechanics of Saddam Hussein's rule, looks at the political dynamics that govern relations between religious and ethnic entities, and describes the various opposition groups and their potential role. It does not seek to predict the course of events in Iraq or to argue for any particular course of action. This is the first in a series of reports and briefing papers that ICG intends to issue on the challenges posed by Iraq, including the state of the country more than a decade after the Gulf War; regional attitudes toward a possible U.S. military offensive; the status of Iraqi Kurdistan; and Iran's posture toward a U.S.-led war and Iraq after Saddam Hussein.
Topic:
Government and Politics
Political Geography:
United States, Iraq, Iran, Arab Countries, and Kurdistan

685. Kyrgyzstan's Political Crisis: An Exit Strategy

Publication Date:
08-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
ICG's first report on Kyrgyzstan, published in August 2001, highlighted the potential for crisis facing the country. International attention was then rarely focused on Central Asia but since September 2001 the region has suddenly registered on policy-makers' agendas. Nearly 2,000 U.S. and Coalition troops are now located at Manas Airport near Bishkek, as part of the forces active in Afghanistan, and Kyrgyzstan is playing a key strategic role in the region. Stability in this country is now of fundamental concern to the international community but, since early 2002, it has declined sharply.
Topic:
Democratization, Government, and Politics
Political Geography:
United States, Central Asia, and Kyrgyzstan

686. Fighting to Control Yugoslavia's Military

Publication Date:
07-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Yugoslav President Vojislav Kostunica's 24 June 2002 sacking of Yugoslav Army (VJ) Chief of the General Staff Nebojsa Pavkovic was necessary, welcome, and long overdue. The EU, U.S., and NATO acclaimed the move as an effort to assert civilian control over the military, and Kostunica indeed deserves credit for removing a significant obstacle to the country's reintegration with Europe. Nonetheless, the action was probably more the result of the ongoing power struggle between Kostunica and Serbian Premier Zoran Djindjic than a genuine effort to bring the military under civilian control or dismantle the extra-constitutional parallel command structures that the post-Milosevic leadership of the country has created within the VJ.
Topic:
Ethnic Conflict, Government, and Politics
Political Geography:
United States, Europe, Eastern Europe, Yugoslavia, United Nations, and Serbia

687. The IMU and the Hizb-ut-Tahrir: Implications of the Afghanistan Campaign

Publication Date:
01-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The attacks in the United States on 11 September 2001 and the U.S.-led military campaign in Afghanistan have intensified the scrutiny of Islamist movements across Central Asia. Of such movements, two – the Islamic Movement of Uzbekistan (IMU) and the Hizb-ut-Tahrir al-Islami (“Party of Islamic Liberation”) – have been of greatest concern to the governments of Uzbekistan, Kyrgyzstan and Tajikistan and to the broader international community.
Topic:
Conflict Resolution, Government, and Terrorism
Political Geography:
Afghanistan, United States, Central Asia, Kyrgyzstan, and Uzbekistan

688. The Cost of Multilateral Action

Author:
Shepard Forman, Maurizio Iacopetta, Charles Grayboy, and Yoram Wurmser
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
This explanatory note accompanies five tables developed and prepared over the past two years by graduate assistants at the Center on International Cooperation (CIC), New York University. Together, the tables describe CIC's preliminary efforts to aggregate the costs of international public goods and services provided through intergovernmental organizations. It does not account for bilateral funding nor for expenditures from non-governmental and other private actors. While the data is partial and subject to methodological deficiencies, it does provide a framework for estimating annual expenditures associated with the provision of goods and services through intergovernmental organizations as well as an indication of their distribution across sectors and regions. Reporting our findings at this early stage of the work is intended to encourage commentary on both the methodology employed and the findings to date, as well as to stimulate further research on the costs and financing of the international public sector.
Topic:
Government, International Cooperation, and Non-Governmental Organization
Political Geography:
United States and New York

689. Support the Ex-Im Bank: It Has Work to Do!

Author:
Gary Clyde Hufbauer and Ben Goodrich
Publication Date:
05-2002
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The US Export-Import (Ex-Im) Bank is again at the center of controversy, as Congress debates the terms for its charter renewal. This policy brief critiques provisions of the House and Senate versions of the reauthorization bill and summarizes three justifications for Congress giving adequate support to the Ex-Im Bank. Box 1 provides a capsule description of the Ex-Im Bank's operations.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States

690. Moral Hazard and the U.S. Stock Market: Analyzing the “Greenspan Put”?

Author:
Marcus Miller, Paul Weller, and Lei Zhang
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
When the risk premium in the US stock market fell far below its historic level, Shiller (2000) attributed this to a bubble driven by psychological factors. As an alternative explanation, we point out that the observed risk premium may be reduced by one-sided intervention policy on the part of the Federal Reserve, which leads investors into the erroneous belief that they are insured against downside risk. By allowing for partial credibility and state dependent risk aversion, we show that this 'insurance'—referred to as the Greenspan put—is consistent with the observation that implied volatility rises as the market falls. Our bubble, like Shiller's, involves market psychology, but what we describe is not so much 'irrational exuberance' as exaggerated faith in the stabilizing power of Mr. Greenspan.
Topic:
Economics, Government, International Trade and Finance, and Political Economy
Political Geography:
United States