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741. Living Standards in an Ageing, Greener, Knowledge Economy: Towards a period of lean cows?

Author:
Jørgen Mortensen
Publication Date:
12-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper provides evidence on past growth of productivity, analysing the evolution of labour productivity, capital deepening and multi-factor productivity. Based on a literature review of recent studies, it shows that economic growth is increasingly attributable to the accumulation of intangible capital and that consequently, an increasing share of conventionally measured rise in labour productivity has, in fact, been ploughed back into the economy as intangible capital formation. In addition, it shows that on average for the developed countries examined, the growth of total factor productivity has been the main determinant of the increase in living standards over the 50 years from 1960 to 2010. It also demonstrates a striking slowdown in the growth of both productivity and living standards during this period. Looking ahead, it argues that the period 2010 to 2030 is likely to see a considerable expansion of tangible and intangible capital formation and lower growth of multi-factor productivity. The paper therefore concludes that over the next 20 years the scope for growth in living standards in the developed economies will be very limited, on average around half a percent per annum, with serious consequences for social conditions and a likely aggravation of inequalities.
Topic:
Economics, Globalization, Human Welfare, and Labor Issues
Political Geography:
Europe

742. Iranian Youth in Times of Economic Crisis

Author:
Djavad Salehi-Isfahani
Publication Date:
08-2010
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Young people in Iran have emerged as important players on the country's political scene but remain marginal on its economic scene. They were a vital part of President Khatami's political base and contributed to his landslide victories at the polls, in 1997 and 2001. In June 2009 they again played a key role, this time in challenging President Mahmoud Ahmadinejad's controversial reelection, which led to massive anti-government protests in the nation's largest cities. A year later the political crisis appears to have subsided, but the economic crisis that has engulfed the country since early 2008 has deepened, and with it the crisis facing Iran's youth. Youth unemployment is at record high levels and, for the majority of youth, marriage and family formation are increasingly becoming challenges to overcome rather than celebrations of reaching adulthood.
Topic:
Islam, Labor Issues, and Youth Culture
Political Geography:
Iran, Middle East, and Asia

743. The Impact of Migration and Remittances on Wealth Accumulation and Distribution in Rural Thailand

Author:
Filiz Garip
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
This paper studies the impact of internal migration and remittance flows on wealth accumulation and distribution in 22 rural villages in Nang Rong, Thailand. Using data from 943 households, the study constructs indices of household productive and consumer assets with principal components analysis. The changes in these indices from 1994 to 2000 are modeled as a function of households' prior migration and remittance behavior while correcting for potential selectivity bias with propensity score matching. The findings show that rich households face a decrease in productive assets due to migration of their members, while poor households with migrants gain productive assets and improve their relative status in their communities. These results suggest an equalizing effect of migration and remittance flows on wealth distribution in rural Thailand.
Topic:
Migration, Poverty, and Labor Issues
Political Geography:
Thailand and Southeast Asia

744. Discovering Diverse Mechanisms of Migration: The Mexico-U.S. Stream from 1970 to 2000

Author:
Filiz Garip
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Migrants to the United States are a diverse population. This diversity, captured in various migration theories, is overlooked in empirical applications that describe a typical narrative for an average migrant. Using the Mexican Migration Project data from about 17,000 first-time migrants between 1970 and 2000, this study employs cluster analysis to identify four types of migrants with distinct configurations of characteristics. Each migrant type corresponds to a specific theoretical account, and becomes prevalent in a specific period, depending on the economic, social and political conditions. Strikingly, each migrant type also becomes prevalent around the period in which its corresponding theory is developed.
Topic:
Migration and Labor Issues
Political Geography:
United States and Mexico

745. Toward Institutional Innovation in US Labor Market Policy: Learning from Europe?

Author:
Tobias Schulze-Cleven and Henry Farrell
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
What keeps US labor market institutions from more effectively helping the nation cope with the current economic crisis and secure its future prosperity? What is the scope for politically feasible innovation in US labor market policy? These are crucial policy questions. As a result of the global financial crisis, the US unemployment rate climbed into double digits and has remained higher than in many European countries. The US is experiencing the highest level of unemployment for a generation and the highest rate of long-term unemployment for more than half a century. American families are suffering from financial hardship without any fault of their own, and many of the currently unemployed will find it hard to re-enter the workforce during the recovery. Nor is the government easily able to use current programs to help those seeking work. Even though policymakers have launched new initiatives during the past year, the US remains almost uniquely weak among advanced industrialized democracies in its lack of policy programs to support the populace in successfully engaging with the labor market.
Topic:
Economics, Markets, Labor Issues, and Financial Crisis
Political Geography:
United States and Europe

746. Obama Appointees with Strong Union Ties Could Push National Labor Relations Board in Wrong Direction

Author:
Thomas P. Gies
Publication Date:
04-2010
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
How might recess appointments to the National Labor Relations Board (NLRB) affect federal labor law? Controversial appointee Craig Becker is known for advocating policies that fall outside the mainstream view of labor laws. Although the views of one member of the NLRB will not automatically translate into dramatic policy changes, concerns that members of the NLRB may rewrite important principles of federal labor laws through litigation are not unfounded. Whether President Barack Obama's NLRB would be able to enact key provisions of the Employee Free Choice Act through litigation rather than congressional action remains to be seen.
Topic:
Labor Issues and Law
Political Geography:
United States

747. Longevity, Capital Formation and Economic Development

Author:
Qiong Zhang
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Many researchers have concluded that longer life expectancies prompt increased investment in education, as a prolonged labor supply raises the rate of return on education. Besides explaining the empirical evidence behind this conclusion (at an absolute level), there is another issue to be discussed: does time spent in studying and working increase proportionally with higher longevity? Building on an extended life-cycle model with an assumption on a more realistic distribution of life cycle mortality rates, this article considers dynamic effects of prolonging longevity on economic development by directly introducing changes in longevity into the economy, which is more preferable than comparative static analysis that relies on changes in relevant parameters. It shows that prolonged life expectancy will cause individuals to increase their time in education but may not warrant rises in labor input. Later we show that higher improvement rate of longevity will also promote economic growth, even we exclude the mechanism of human capital formation, and only consider growth effects of higher improvement rate of life expectancy from physical capital investment.
Topic:
Development, Economics, Education, Health, and Labor Issues
Political Geography:
United States and United Kingdom

748. Sustaining Social Safety Nets: Critical for Economic Recovery

Author:
Alejandro Foxley
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The current global financial shock will be followed by a long period of abnormally high unemployment, and by severe pressure to reduce government expenditures, once the fiscal stimulus runs its course. As a consequence, the coverage and quality of basic social services—from unemployment insurance to health care and social security—may suffer. At the same time, the recession is reducing household income, and thus many households that cannot afford privately provided services will face increasing difficulties in accessing underfunded public services. Significant segments of the middle class might slide back into poverty.
Topic:
Economics, Human Welfare, Labor Issues, and Financial Crisis

749. Russia's Neglected Energy Reserves

Author:
John P. Millhone
Publication Date:
05-2010
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Russia has the world's largest share of fossil energy resources. During the Soviet era, because this wealth of resources insulated the country from global energy crises, citizens never had to worry about conserving energy, and much was squandered. Since the collapse of the Soviet Union, the situation has improved in western, urban Russia, but great expanses of this vast country continue their inefficient ways. Indeed, recognizing that minimizing waste helps preserve Russia's resources, Russian President Dmitry Medvedev successfully urged the Duma to pass sweeping new energy-efficiency legislation. But more remains to be done to identify how energy resources are used and wasted, and where efficiency might be improved.
Topic:
Economics, Energy Policy, International Trade and Finance, and Labor Issues
Political Geography:
Russia and Soviet Union

750. Do Men Slow Down Faster than Women?

Author:
Wolfgang Maennig and Michael Stobernack
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Chair for Economic Policy, University of Hamburg
Abstract:
This paper is the first test of differences between age-related reductions in the performance of men and women. The assumption that men age faster is obvious, because men's life expectancy is generally lower. In addition to other studies on age-related reduction in human performance, this paper examines the data taken from competitions on rowing machines, which have been standardized worldwide and which are hardly affected by weather or temperature. A third innovation is that this study looks for any potential ageing processes specific to gender and physique. Fourth, fractional polynomials have been added to the testing methodology. Contrary to intuition, we find evidence that women are affected by faster age-related reductions in performance.
Topic:
Economics, Labor Issues, Women, Aging, Men, and Gender
Political Geography:
Global Focus