Skill sorting, inter-industry skill wage premium, and production chains: evidence from India 1999-2000

This paper proposes a mechanism that links industry’s technological characteristics (i.e. quality of non-labor inputs, which is proxied by the length of industry production chains), industry-specific skill wage premium, and skill sorting across industries. It is hypothesized that high-skilled workers are sorted into industries where they can receive a higher skill wage premium, by working with better quality non-labor input. The quality of non-labor inputs is assumed to be worse in industries with longer production chains due to the increased involvement of low-skilled labor and poor infrastructure over the sequential production. By examining Indian wage and employment data for 1999-2000, empirical evidence to support this mechanism can be obtained: First, the skill wage premium is lower [higher] in industries with longer [shorter] production chains. Second, the skill wage premium is lower [higher] in industries with a higher [lower] proportion of low-skilled workers producing inputs outside their own industry. Third, the proportion of high-skilled workers is larger in industries with shorter production chains and lower ratio of low-skilled labor involved, i.e., a skill sorting trend can be observed.

Ramadan school holidays as a natural experiment : impacts of seasonality on school dropout in Bangladesh

In 2000, Ramadan school vacation coincided with the original annual exam period of December in Bangladesh. This forced schools to pre-pone their final exam schedules in November, which was the month before the harvest begins. 'Ramadan 2000' is a natural experiment that reduced the labor demand for children during the exam period. Using household level panel data of 2000 and 2003, and after controlling for various unobservable variations including individual fixed effects, aggregate year effects, and subdistrict-level year effects, this paper finds evidence of statistically significant impact of seasonal labor demand on school dropout in Bangladesh among the children from agricultural households.

What motivates female operators to enter the garment industry in Pakistan in the post-MFA period?

Pakistan's knitwear exports had been struggling since the quota phase-out until 2009. A particular feature of Pakistan's garment industry is that hiring more male sewing operators at piece rates. Recently, a few surviving knitwear factories have adopted a strategy of shifting from male piece-rate operators to salaried female operators. In Pakistan, female participation in general workforce is very limited and hiring salaried female operators requires management effort and expertise. However, even in the factories with such management skills, household factors prevent females from working outside because Pakistani culture disrespects women working in factories. Our survey reveals that financial motives compel female household members to work outside their homes and that female operators contribute substantially to their households' finances.

Economic integration, location of industries, and frontier regions : evidence from Cambodia

We examine changes in the location of economic activity in Cambodia between 1998 and 2008 in terms of employment growth. During this period, Cambodia joined ASEAN and increased trade with neighboring countries. Drawing on the predictions of the new economic geography, we focus on frontier regions such as border regions and international port cities. We examine the changing state of manufacturing in Cambodia from its initial concentration in Greater Phnom Penh to its growth in the frontier regions. The results suggest that economic integration and concomitant trade linkages may lead to the industrial development of frontier regions as well as the metropolitan areas in Cambodia.

Political crisis and suspension of duty-free access in Madagascar : assessment of impacts on the garment industry

The export-oriented garment industry in Madagascar has displayed robust growth, thus both contributing to the economy and creating formal employment opportunities. However, it experienced a critical situation after the political turmoil that occurred in 2009. Our investigation using the trade data demonstrates that suspension of duty-free access to the US market (AGOA) resulting from the turmoil had a greater impact on exports, 64%–78% reduction, than the turmoil itself. Our original factory-level data demonstrates that AGOA suspension increased the probability of closure by 57.8% for the factories supplying exclusively to US market, and reduced 6405 jobs for low-skilled positions during the post turmoil period. The factory-level adverse impacts are much less than those on export value at the industry level because of the maintained duty-free access to EU, which has provided an alternative market. It suggests that if EU also had cancelled duty-free access, adverse impacts would have been enormous. Given the general pattern of comparative advantage in low-income countries, unplanned cancellation of duty-free access for them hurts labor-intensive industries and low-skilled workers.

Are special economic zones a curse on those "chosen" to be evicted? : evidence form West Bengal, India

Using data from a self-administered survey of 1,017 households we assess the long-term impact of establishing a special economic zone, on those who are exogenously selected to be displaced. We find those who are displaced suffer from lower land compensation and lack of adequate property rights. There is also some evidence of lower labour market participation among those who are displaced. However, in the long term, across measurable welfare indicators, we do not find that displaced households are significantly different from other households. One source of this resilience is through employment at the special economic zone – which is higher among displaced households compared to other households. Another factor that contributed to the absence of differences is spill-over effects; which made access to employment, education and other facilities about homogenous across displaced and non-displaced households.

Skill sorting and production chains : evidence from India

This study proposes a new mechanism that explains skill-sorting patterns and skill wage differentials across industries based on the length of the industry's production chain. A simple simultaneous production model shows that when the quality of intermediate inputs deteriorates rapidly along the production chains, high-skilled individuals choose to work in industries with shorter production chains because of higher returns to skill. I empirically confirm this skill-sorting pattern and these inter-industry skill wage differentials in India, where the quality of intermediate inputs is likely to degrade rapidly because of the high number of unskilled laborers, poor infrastructure, and less-advantaged technology. The results remain robust even when considering selection bias, alternative reasons for inter-industry skill wage differentials, and a different period. The results of this study have important implications when considering countries' industrial development patterns.

Negative skill sorting across production chains

Previous literature generally predicts that individuals with higher skills work in industries with longer production chains. However, the opposite skill-sorting pattern, a "negative skill-sorting" phenomenon, is also observed in reality. This paper proposes a possible mechanism by which both cases can happen and shows that negative skill sorting is more likely to occur when the quality of intermediate inputs degrade rapidly (or improves slowly) along the production chain. We empirically confirm our theoretical prediction by using country-industry panel data. The results are robust regardless of estimation method, control variables, and industry coverage. This study has important implications for understanding countries' comparative advantages and development patterns.

Temporary jobs and globalization

Deregulation of the use of temporary workers in 2004 (the Worker Dispatching Act of 2004) has been regarded as an important reason for the recent rise of temporary workers in Japan. However, the shift from permanent to temporary workers began long before. This paper empirically explores links between the shift from permanent to temporary workers in the Japanese manufacturing sector and economic globalization, using industry-level data. We find that outsourcing is positively correlated with the replacement of permanent workers with temporary workers in domestic production. In addition, we find that industries losing world share of value added tend to decrease the employment of permanent workers. Industries with higher exports or imports are aggressive in using temporary workers, which suggests the role of temporary workers as an employment buffer.

Heterogenous match efficiency

In this paper, we show a model with one-sided endogenous match efficiency. It is assumed that schooling can enhance match efficiency, and people will choose the schooling level optimally to balance its costs and benefits of enhanced match efficiency. Assuming a financial market imperfection which limits individuals to borrow, we showed that, in equilibrium, when educational achievements can be characterised by dicohotomy (secondary vs. tertiary), tertiary education gives higher wages even it only has pure match efficiency (signalling) value with no human capital value. We also showed that relative match efficiency vis-a-vis its mean matters in wage levels.

The introduction of teaching innovations into the traditional teaching of construction and building materials

The traditional teaching methods used for training civil engineers are currently being called into question as a result of the new knowledge and skills now required by the labor market. In addition, the European Higher Education Area is requesting that students be given a greater say in their learning. In the subject called Construction and Building Materials at the Civil Engineering School of the Universidad Politécnica de Madrid, a path was set three academic years ago to lead to an improvement in traditional teaching by introducing active methodologies. The innovations are based on cooperative learning, new technologies, and continuous assessment. The writers’ proposal is to offer their experience as a contribution to the debate on how students can be encouraged to acquire the skills currently demanded from a civil engineer, though not overlooking solid, top-quality training. From the outcomes obtained, it can be concluded that using new teaching techniques to supplement a traditional approach provides more opportunities for students to learn while boosting their motivation. In our case, the introduction of these changes has resulted in an increased pass rate of 29% on average, when such a figure is considered in the light of the mean value of passes during the last decade.

Leader Rural Development Program in Spain: Profile and Functions of Workers in Local Action Groups.

Occupations in the labor market are linked with to a minimum basic training and other capacities. Hired workers should be able to accomplish required functions related to their specific job. Regarding the rural development labor market, local action groups? workers have defined performance areas?projects, strategy, organization and training & market?but specific functions within each of these areas are not as clearly defined. Neither both, basic training and capacities needed to perform each job profile within the local action group are defined. This communication analyses training and other capacities linked to each of the job profiles within the local action group. Functions within each of the performance areas previously defined are also analyzed regarding the job profiles.

Developing transferable skills through academic motivation activities

The purpose of this study is to work out how a clear and motivated task goal set for the students can develop several skills that are not only useful in their specific academic contexts but also serve to reinforce links and cooperation with the labor market. The following research on skills was taken during one academic year. The students collected advertisements likely to be selected in a near future by themselves as possibilities to apply for a job. The advertisements selected were 120, and all of them were published on the internet either in jobs links or located by the students themselves in the web-practices of their choice. All the advertisements chosen by the students provided us with a skill list focused on architectural profiles. To conclude, academic research skills versus future motivation jobs positions are fruitful paths to conduct successful students´response at job interviews.

Assessing the suitability of student interactions from Moodle data logs as predictors of cross-curricular competencies

In the past decades, online learning has transformed the educational landscape with the emergence of new ways to learn. This fact, together with recent changes in educational policy in Europe aiming to facilitate the incorporation of graduate students to the labor market, has provoked a shift on the delivery of instruction and on the role played by teachers and students, stressing the need for development of both basic and cross-curricular competencies. In parallel, the last years have witnessed the emergence of new educational disciplines that can take advantage of the information retrieved by technology-based online education in order to improve instruction, such as learning analytics. This study explores the applicability of learning analytics for prediction of development of two cross-curricular competencies – teamwork and commitment – based on the analysis of Moodle interaction data logs in a Master’s Degree program at Universidad a Distancia de Madrid (UDIMA) where the students were education professionals. The results from the study question the suitability of a general interaction-based approach and show no relation between online activity indicators and teamwork and commitment acquisition. The discussion of results includes multiple recommendations for further research on this topic.

A IMPORTÂNCIA DO ALINHAMENTO ENTRE A CULTURA ORGANIZACIONAL E AS POLÍTICAS DE ADMINISTRAÇÃO DE RECURSOS HUMANOS NO ALCANCE DAS METAS ORGANIZACIONAIS ESTUDO DE CASO FUNDAÇÃO FLORESTAN FERNANDES

Este trabalho investiga o alinhamento das práticas de gestão de recursos humanos em relação à cultura organizacional, assim como a importância desse alinhamento no alcance das metas e objetivos da organização representada neste estudo pela Fundação Centro de Educação do Trabalhador Florestan Fernandes , localizada no Município de Diadema, no Grande ABCD paulista. Do mesmo modo, compreende estas práticas e pressupostos em um contexto mais amplo e em permanente interação com as demandas apresentadas pelo ambiente externo à organização. A metodologia utilizada no trabalho é de caráter qualitativo devido à possibilidade que apresenta em dar tratamento a um forte conteúdo comportamental e subjetivo, no qual interferem fatores diversificados e pouco controláveis que permitem através da descrição, decodificação e tradução chegar a uma conclusão, não quanto à freqüência, mas quanto ao significado de certos fenômenos do mundo social.(AU)