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771. Globalization and Formal Sector Migration in Brazil (Revised)

Author:
Marc-Andreas Muendler, Jennifer Pamela Poole, and Ernesto Aguayo-Tellez
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Comprehensive linked employer{employee data allow us to study the relationship between domestic formal sector migration in Brazil and globalization. Considerable worker flows in the formal labor market between 1997 and 2001 are directed toward lower income regions|the reverse flows of those often posited for informal labor markets. Estimation of the worker's multi-choice migration problem shows that previously unobserved employer covariates are significant predictors associated with migration flows. These results support the idea that globalization acts on internal migration through job stability at exporting establishments and employment opportunities at locations with a concentration of foreign owned establishments. A 1% increase in exporter employment predicts a 0.3% reduced probability of migration. A 1% increase in the concentration of foreign owned establishments at potential destinations is associated with a 0.2% increase in the migration rate.
Topic:
Economics, Globalization, Markets, Migration, and Labor Issues
Political Geography:
Latin America

772. Minimum Wages, Globalization, and Poverty in Honduras

Author:
T. H. Gindling and Katherine Terrell
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
To be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labor market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find that minimum wage increases in Honduras reduce extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector).
Topic:
Globalization, Political Economy, Poverty, and Labor Issues
Political Geography:
Global Focus

773. Why has Swedish Inflation been Persistently Low?

Author:
Felix Hufner
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Average inflation in Sweden has been one of the lowest among European countries since the mid- 1990s. Three supply-side factors help to explain this phenomenon, all related in some sense to increased global integration. First, a shift towards imports from low-cost producing countries has resulted in falling import prices. Second, deregulation and increased product market competition with foreign companies entering the market has led to price falls in some sectors, notably in retailing. Third, wage growth has lagged productivity and kept unit labour costs down. This paper reviews these factors and analyzes the policy options for the central bank.
Topic:
Economics, Labor Issues, Monetary Policy, and Inflation
Political Geography:
Europe, Sweden, and Scandinavia

774. The Unemployment Impact of Immigration in OECD Countries

Author:
Sébastien Jean and Miguel Jimenez
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This paper assesses the consequences of immigration for natives' unemployment in OECD countries and investigates the role played by product and labour market policies in the economy's adjustment to immigration inflows. The estimations, combining a skill-level and an aggregate approach using data for males, cover eighteen OECD countries over the period 1984-2003. While no significant long-run impact is found, an increase in the share of immigrants in the labour force is estimated to raise temporarily natives' unemployment, over a period of approximately five to ten years. Anticompetitive product market regulations are found to increase both the magnitude and the persistence of this impact, while more stringent employment protection legislation magnifies its persistence, and a higher average replacement rate of unemployment benefits increases its magnitude.
Topic:
Migration, Labor Issues, Immigration, Developing World, and Unemployment
Political Geography:
Global Focus

775. Migration in OECD countries Labour Market Impact and Integration Issues

Author:
Sébastien Jean, Orsetta Causa, Miguel Jimenez, and Isabelle Wanner
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
immigration for natives' labour market outcomes, as well as issues linked to immigrants' integration in the host country labour market. Changes in the share of immigrants in the labour force may have a distributive impact on natives' wages, and a temporary impact on unemployment. However, labour market integration of immigrants (as well as integration of second-generation immigrants - both in terms of educational attainments and of labour market outcomes) remains the main challenge facing host economies. In both cases, product and labour market policies have a significant role to play in easing the economy's adjustment to immigration.
Topic:
Migration, Labor Issues, Immigration, and Employment
Political Geography:
Global Focus

776. Integration of Immigrants in OECD Countries Do Policies Matter?

Author:
Orsetta Causa and Sébastien Jean
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This working paper assesses the ease of immigrants' integration in OECD labour markets by estimating how an immigration background influences the probability of being active or employed and the expected hourly earnings, for given individual characteristics. Applying the same methodology to comparable data across twelve OECD countries, immigrants are shown to significantly lag behind natives in terms of employment and/or wages. The differences narrow as years since settlement elapse, especially as regards wages, reflecting progressive assimilation. Strong differences in immigrant-to-native gaps are also observed across countries, and the paper shows that they may, to a significant extent, be explained by differences in labour market policies, in particular unemployment benefits, the tax wedge and the minimum wage. In addition, immigrants are shown to be overrepresented among outsiders in the labour market and, as such, highly sensitive to the difference in employment protection legislation between temporary and permanent contracts.
Topic:
Migration, Labor Issues, Immigration, Employment, and Social Services
Political Geography:
Global Focus

777. Family Policy in Hungary How to Improve the Reconciliation between Work and Family?

Author:
Philip Hemmings
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Hungarian family policy focuses on providing generous options to take time off work to look after children. This system not only contributes to Hungary’s low employment rate but encourages long separation from the labour market, has largely failed to significantly influence fertility rates and is relatively expensive to run. This paper looks at how to shift the policy focus towards reconciling work and family life. Reasons for under-provision in childcare by local governments are discussed and recommendations for further central-government intervention to improve supply are made. Recommendations for reform are also made regarding the complex system of family cash benefits and leave allowances.
Topic:
Labor Issues, Family, Social Services, and Social Roles
Political Geography:
Hungary and Central Europe

778. Improving Education Outcomes in the Slovak Republic

Author:
David Carey
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Improving education outcomes is vital for achieving convergence with GDP per capita levels in Western European countries and for reducing income inequality. While some education outcomes are favourable, such as the low secondary-school drop-out rate, others have room for improvement: education achievement is below the OECD average and strongly influenced by socio-economic background; Roma children, who are mainly from disadvantaged socio-economic backgrounds, have particularly poor achievement; labour-market outcomes are poor for graduates of secondary vocational programmes not leading to tertiary education; and tertiary attainment is low, albeit rising. Reforms have been made in recent years or are planned to address many of these weaknesses, but much remains to be done. In particular, more progress needs to be made in increasing participation in early childhood education and care, reducing stratification in the education system, helping Roma children to integrate into the education mainstream, and in attracting high quality graduates to teaching, especially in socio-economically disadvantaged schools. In addition, secondary vocational education not leading to tertiary education needs to be made more pertinent to labour-market requirements. Tertiary education also needs to be made more attractive for technical secondary school graduates.
Topic:
Education, Labor Issues, Income Inequality, and Socioeconomics
Political Geography:
Europe and Eastern Europe

779. Enhancing Incentives to Improve Performance in the Education System in France

Author:
Paul O'Brien
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The French education system has a mixed record. A generally very successful pre-school and primary school level contrasts with underfunded public universities with high dropout rates which exist alongside very successful higher education institutions for elites. Initial education, especially secondary education and the universities, along with labour market policies themselves, do not always succeed in improving labour market entry for a significant proportion of young people. Parts of the management of education have been decentralised, yet educational institutions themselves generally have a very restricted degree of autonomy. The system of performance measurement and incentives, at all levels of education, needs to be reviewed.
Topic:
Education, Labor Issues, National & provincial initiatives, and Decentralization
Political Geography:
Europe and France

780. Unauthorized Migrants in the United States

Author:
Jeffrey Passel
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This report discusses methods of measuring unauthorized migration to the United States. The “residual method” involves comparing an analytic estimate of the legal foreign-born population with a survey-based measure of the total foreign-born population. The difference between the two population figures is a measure of the unauthorized migrant population in the survey; it can then be corrected for omissions to provide a measure of the total unauthorized population. The report includes a detailed description of the residual methods and the underlying data and assumptions as it has been applied to recent data from the Current Population Survey (CPS) and decennial censuses. The paper presents new results of estimates derived from the march 2006 CPS which show that the unauthorized population in the U.S. has reached 11.5 million; of these, 6.5 million or 57% are from Mexico. The report also presents derived data on a range of social and economic characteristics of the unauthorized population developed with an extension of the residual estimates. Finally, historical data on trends in unauthorized migration and several alternative estimation methods are presented and discussed.
Topic:
Migration, Labor Issues, Immigration, Border Control, and Socioeconomics
Political Geography:
United States, Central America, North America, and Mexico