The role of capital-labour substitution in economic growth

Purpose – Although the importance of the elasticity of substitution between capital and labour (s) has been recognized in many areas in economics, this parameter has not received enough attention in economic growth. The purpose of this paper is to review the recent development in the importance of s in economic growth.

Design/methodology/approach – This paper specifically reviews the possibility of perpetual growth and slowdown, and the asymptotic behaviour of the balanced growth path for different values of s. It also reviews the determinants of the aggregate s.

Findings – Based on the empirical evidence that the value of s significantly departs from the Cobb-Douglas value of unity, the paper recommends employing the constant elasticity of substitution (CES) production function in both theoretical and empirical growth research.

Originality/value – This paper offers a new perspective on the elasticity of substitution between capital and labour due to its evaluation of various factors, methods and approaches.

A labour of love: mothers, emotional capital and homework

This paper develops a new analysis of homework by building on feminist scholarship which documents the invisible labour done by women in support of their children's education. While numerous studies have examined the relationship between homework and achievement, little attention has been paid to the largely gendered and potentially stressful nature of ‘parental involvement’. The analytic focus in this paper is on the complex emotional and pedagogical dimensions of homework and the ways it is shaped by socio-cultural contexts. Videotaped homework interactions between one working-class and two middle-class mothers and their children are examined using Bourdieu's concepts of habitus and capital. The analysis distinguishes between productive pedagogical relationships and those that promote extensive anxiety and are counterproductive to learning. The paper argues that the reserves of cultural and emotional capital required for homework completion are significant and that class position does not necessarily guarantee the ways in which these capitals are mobilised.

Labour productivity measurement with variable returns to scale in Australia's construction industry

As an important productivity indicator, the change of labour productivity is one indispensable marker in determining the rise or fall of overall industrial performance. This study aims to address whether the labour productivity level of the Australian construction industry has, in fact, shown a huge improvement during the last few decades. This article constructs a measuring method estimating labour productivity changes based on the data envelopment analysis technique with variable returns to scale. By adopting a production frontier approach, the labour productivity index can be broken down into components attributable to efficiency change, technological progress and capital accumulation. The numerical results exemplified by a single-input and single-output system indicate that the average annual labour productivity levels of the construction industry are slowly growing in all the Australian states and territories. However, the year-on-year change in the overall labour productivity performance does not maintain a long-term increase over the period 1990–2008. The study forms the basis for further industrial productivity research. Proposals and recommendations are expected to be beneficial for making policy and strategic decisions to improve the performance of the construction industry.

Accountability and the affective labour of teachers: a Marxist-Vygotskian perspective

This article addresses the issue of affective labour in education in the context of standards-based reforms and accountability. In particular, it focuses on neoliberal strategies of rationalization and control that produce a number of social pathologies, such as alienated teaching and learning and reified social relations between teachers and students. The article turns to affective labour as something that enables teachers to counteract these effects. This argument arises from the analysis of interviews with teachers who continue to generate and sustain the sociality of teaching and learning. Affect directs teachers’ commitment to practice that is governed by feeling, passion and the ethics of care. What gives affective labour such an important position is that it is both outside and beyond accountability and performativity measures. It is identified with the general pedagogical activity that cannot be structured by measuring devices such as students’ test scores or standards. The article concludes with the application of Vygotsky’s ideas about the role of affect in education and argues that affective labour has an expansive power of ontological freedom that cannot be controlled. of ontological freedom that cannot be controlled.

Economic value of mitigation of plant invaders in a subsistence economy : incorporating labour as a mode of payment

This paper presents the analysis of a choice experiment designed to estimate willingness-to-pay (WTP) to mitigate damages caused by invasive plant species in a rural community of Nepal. In order to address the cash constraints problem in a subsistence economy, two payment attributes, labour contribution and membership fee, were included in the choice sets. The results reveal that rural farmers have significant WTP for forest management activities, in terms of both cash and labour contributions. The results also suggest that rural farmers value their time in this context at a different rate from the current wage rate.

Urban informality in the developing world - Opportunistic urban design processes and prototypes for the developed world

The turn of the twenty first century heralds a fundamental shift in the world’s population towards cities in what has been termed The Urban Age, most visible in the developing world. Instead of the dichotomy of ‘First World models’ and ‘Third world problems’, research has begun to explore the complexities of urban informality revealing new approaches to the complex creation of urban spaces. This paper will analyse the prevailing perspectives in order to develop an understanding of informality as an urban evolution through necessity. Finally through an analysis of professional urban design experiments the paper highlights opportunities and challenges within the developing world for new and exciting urban design processes in the developed world.

Utilising self-report data to measure racial discrimination in the labour market

Although economists have developed a series of approaches to modelling the existence of labour market discrimination, rarely is this topic examined by analysing self-report survey data. After reviewing theories and empirical models of labour market discrimination, we examine self-reported experience of discrimination at different stages in the labour market, among three racial groups utilising U.S. data from the 2001-2003 National Survey of American Life. Our findings indicate that African Americans and Caribbean blacks consistently report more experience of discrimination in the labour market than their non-Hispanic white counterparts. At different stages of the labour market, including hiring, termination and promotion, these groups are more likely to report discrimination than non-Hispanic whites. After controlling for social desirability bias and several human capital and socio-demographic covariates, the results remain robust for African Americans. However, the findings for Caribbean blacks were no longer significant after adjusting for social desirability bias. Although self-report data is rarely utilised to assess racial discrimination in labour economics, our study confirms the utility of this approach as demonstrated in similar research from other disciplines. Our results indicate that after adjusting for relevant confounders self-report survey data is a viable approach to estimating racial discrimination in the labour market. Implications of the study and directions for future research are provided.

Labour market and other discrimination facing Indigenous Australian

This paper uses self-reported data to illustrate how Indigenous Australians experience discrimination and how it is potentially associated with poor labour market outcomes. After giving consideration to what factors may lead people to report being discriminated against, an empirical analysis of self-reported discrimination is presented, utilising data from the 2008 National Aboriginal and Torres Strait Islander Social Survey (NATSISS). Correlations between discrimination experienced in different settings are identified, and the association of discrimination with human capital and other characteristics is presented. The results suggest that the main process driving the reporting of discrimination is the extent to which an individual is exposed to situations in which they interact with potential discriminators. This could mean that some Indigenous Australians decrease their labour supply in order to avoid potentially adverse (discriminatory) situations. Implications for understanding Indigenous disadvantage are discussed along with recommendations for both addressing discrimination and enhancing the resilience of individuals facing discrimination.

Gender wage discrimination in rural and urban labour markets of Bangladesh

Female wages in Bangladesh are significantly lower than male wages. This paper quantifies the extent to which discrimination can explain this gender wage gap across the rural and urban labour markets of Bangladesh, using unit record data from the 1999–2000 Labour Force Survey. The gender wage differential is decomposed into a component that can be explained by differences in productive characteristics and a component not explained by observable productive differences, which is attributed to discrimination. An attempt is also made to improve on the standard methodology by implementing a wage-gap decomposition method that accounts for selectivity bias, on top of the usual “explained” and “unexplained” components. Analytical results from this paper show that gender wage differentials are considerably larger in urban areas than in rural areas and a significant portion of this wage differential can be attributed to discrimination against women. The results also show that selectivity bias is an important component of total discrimination.