The informal labour market in India : transitory or permanent employment for migrants?

The informal economy is a very important sector of the Indian economy. The National Council of Applied Economic Research estimates that the informal sector - "unorganised sector" - generates about 62% of GDP and provides for about 55% of total employment (ILO 2002, p. 14). This paper studies the characteristics of the workers in the informal economy and whether internal migrants treat this sector as a temporary location before moving on to the organised or formal sector to improve their lifetime income and living conditions. We limit our study to the Indian urban (non-agricultural) sector and study the characteristics of the household heads that belong to the informal sector (self-employed and informal wage workers) and the formal sector. We find that household heads that are less educated, come from poorer households, and/or are in lower social groups (castes and religions) are more likely to be in the informal sector. In addition, our results show strong evidence that the longer a rural migrant household head has been working in the urban sector, ceteris paribus, the more likely that individual has moved out of the informal wage sector. These results support the hypothesis that, for internal migrants, the informal wage labour market is a stepping stone to a better and more certain life in the formal sector.

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.

The voices and protests of China's labour NGOs and their effort to promote migrant worker rights

Labour NGOs in China are relatively new organizations that emerged in the 1990s and have spread during the 2000s. Migrant workers in China are weak both socially and economically and have been lacking ways of voicing grievances and protesting. Grassroots labour NGOs for migrant workers seem to be an efficient channel for their voices. This paper examines how labour NGOs emerged and how they function in the context of current Chinese society. This paper adopts the case study method to describe three NGOs in Beijing and Shenzhen. The paper shows that these NGOs are using different methods to resolve migrant worker problems. At the same time, they are voicing the migrants' grievances and protesting in their own ways.

Análise do impacto das políticas de intervenção no setor do agronegócio sobre a cadeia de carne bovina na Venezuela

O objetivo deste trabalho foi analisar o desempenho da cadeia de carne bovina na Venezuela sob o efeito de políticas de intervenção estatal principalmente nas últimas décadas. Para tanto, foi empregada a abordagem teórica do enfoque sistêmico em conjunto com metodologia que se apoiou em um modelo econométrico para explicar o efeito de variáveis tecnológicas e macroeconômicas no agronegócio vis a vis a resultante da produção doméstica de carne bovina nas últimas décadas. Os resultados mostram que, no marco de mudanças institucionais estabelecidas desde a década de 1980 e especialmente as intervenções governamentais vigentes a partir do ano de 2003, a cadeia de carne bovina da Venezuela apresenta um desempenho negocial preocupante e não sustentável. Na última década, a Venezuela decresceu seu inventário bovino a uma taxa média anual de 2,56% entre 2003 e 2014. O número de cabeças/habitante diminuiu a uma taxa anual de 1,30% entre 1960 e 2014, ficando em 0,38 cabeças/habitante. O número de cabeças abatidas sobre o total do rebanho (taxa de desfrute geral do rebanho) foi de 10,82% para o ano de 2014, inferior à média de países vizinhos como Colômbia e Brasil que ficaram em 20,85% e 19,42% respectivamente. A produção doméstica de carne bovina decresceu a uma taxa anual de 2,22% entre 1997 e 2014 (mesmo considerando o abate de bovinos importados). A quantidade de carne oriunda de animais importados cresceu até alcançar um máximo de 58,51% do abate nacional, em 2013. Isto significou um decréscimo real da produção endógena de 71,55% entre os anos de 1997 e 2013. Neste contexto, a produção nacional percapita diminuiu de 18,31 kg/habitante (em 1997) para um mínimo de 3,97 kg/habitante (em 2013). Para o atendimento da demanda doméstica passou-se a contar, crescentemente, com importações de carne in natura que cresceram em volume inicial de 0,59 mil toneladas (t) de equivalente carcaça (em 1997) para um máximo de 307,57 mil t em 2008. A taxa de penetração das importações de carne bovina equivalente (carne e bovinos em pé) resultou em 79,54% do atendimento da demanda doméstica em 2013 (cerca de 15,45 kg/habitante/ano). Neste contexto, as intervenções mais relevantes têm sido a Lei de Terras que propiciou um ambiente de insegurança jurídica; os controles de preços e a política cambial que criaram distorções no mercado; e, a crescente influência nas redes de distribuição de alimentos, com forte dependência do comércio exterior, alavancado com os incrementos no preço internacional do petróleo entre 2003 e 2014. Tudo isto tem resultado em um cenário de desmonte da produção interna da carne bovina, que pode ser visualizado em episódios crescentes de escassez deste produto no mercado interno. Ao final, são sugeridas algumas práticas de políticas pública e setoriais para a reversão desse quadro insustentável para esta importante cadeia de negócios da Venezuela.

Who Benefits from a Transatlantic Free Trade Agreement? Policy Brief #2013/04

From a purely economic standpoint, the US and the entire EU will profit from a dismantling of tariffs and non-tariff trade barriers between both regions. The real gross domestic product per capita would increase in the US and in all 27 EU member countries. Also when one looks at labor markets, the positive effects on employment predominate: Two million additional jobs could be created in the Organization for Economic Co-operation and Development (OECD) zone over the long run. The public welfare gains of these economies admittedly do stand in contrast with real losses in income and employment in the rest of the world. On balance, however, the beneficial effects on economic welfare prevail.

Jobs, Unemployment, and Macroeconomic Transmission

Measuring Job Openings: Evidence from Swedish Plant Level Data. In modern macroeconomic models “job openings'' are a key component. Thus, when taking these models to the data we need an empirical counterpart to the theoretical concept of job openings. To achieve this, the literature relies on job vacancies measured either in survey or register data. Insofar as this concept captures the concept of job openings well we should see a tight relationship between vacancies and subsequent hires on the micro level. To investigate this, I analyze a new data set of Swedish hires and job vacancies on the plant level covering the period 2001-2012. I find that vacancies contain little power in predicting hires over and above (i) whether the number of vacancies is positive and (ii) plant size. Building on this, I propose an alternative measure of job openings in the economy. This measure (i) better predicts hiring at the plant level and (ii) provides a better fitting aggregate matching function vis-à-vis the traditional vacancy measure. Firm Level Evidence from Two Vacancy Measures. Using firm level survey and register data for both Sweden and Denmark we show systematic mis-measurement in both vacancy measures. While the register-based measure on the aggregate constitutes a quarter of the survey-based measure, the latter is not a super-set of the former. To obtain the full set of unique vacancies in these two databases, the number of survey vacancies should be multiplied by approximately 1.2. Importantly, this adjustment factor varies over time and across firm characteristics. Our findings have implications for both the search-matching literature and policy analysis based on vacancy measures: observed changes in vacancies can be an outcome of changes in mis-measurement, and are not necessarily changes in the actual number of vacancies. Swedish Unemployment Dynamics. We study the contribution of different labor market flows to business cycle variations in unemployment in the context of a dual labor market. To this end, we develop a decomposition method that allows for a distinction between permanent and temporary employment. We also allow for slow convergence to steady state which is characteristic of European labor markets. We apply the method to a new Swedish data set covering the period 1987-2012 and show that the relative contributions of inflows and outflows to/from unemployment are roughly 60/30. The remaining 10\% are due to flows not involving unemployment. Even though temporary contracts only cover 9-11\% of the working age population, variations in flows involving temporary contracts account for 44\% of the variation in unemployment. We also show that the importance of flows involving temporary contracts is likely to be understated if one does not account for non-steady state dynamics. The New Keynesian Transmission Mechanism: A Heterogeneous-Agent Perspective. We argue that a 2-agent version of the standard New Keynesian model---where a ``worker'' receives only labor income and a “capitalist'' only profit income---offers insights about how income inequality affects the monetary transmission mechanism. Under rigid prices, monetary policy affects the distribution of consumption, but it has no effect on output as workers choose not to change their hours worked in response to wage movements. In the corresponding representative-agent model, in contrast, hours do rise after a monetary policy loosening due to a wealth effect on labor supply: profits fall, thus reducing the representative worker's income. If wages are rigid too, however, the monetary transmission mechanism is active and resembles that in the corresponding representative-agent model. Here, workers are not on their labor supply curve and hence respond passively to demand, and profits are procyclical.

Outsourcing to a non-developed supplier market:the importance of operational aspects in outsourcing

This article investigates how firms manage outsourcing in situations of a non-developed supplier market. This study followed the initial outsourcing activities and strategies of two case companies in the wood product manufacturing industry. The findings show that greater focus needs to be placed on operational aspects associated with non-developed supplier markets, which contrasts with the traditional strategic view of outsourcing. For practitioners, this article suggests that it is important to emphasise that the learning curve for a supplier can be lengthy, and also that alternative outsourcing routes are available when outsourcing to a non-developed supplier market.

Trimming the sails. The comparative political economy of expansionary fiscal consolidations. A Hungarian perspective

Provides a multidisciplinary and systematic analysis of the concept of fiscal consolidations. This book discusses the concept, suggesting that fiscal adjustment can be in trade-off with economic growth if certain conditions are met. Fiscal consolidation has significant short term costs which dampen economic growth. This widely shared consensus in literature on political economy makes fiscal adjustment highly unpopular. Benczes conducts a systematic analysis to find out whether it is possible to have fiscal consolidation and experience economic growth even in the short run.The book provides a clear, multidisciplinary and systematic analysis of the relatively new concept of the so-called expansionary fiscal consolidations. This concept suggests that fiscal adjustment can be in trade-off with economic growth if certain conditions are met. But why do only a few countries and only at certain times experience the expansionary effects, while others not at all? The necessary conditions and circumstances have been totally neglected in the literature, or analyzed only partially at best.Having evolved a theoretical framework, it is tested on a difficult case: Hungary, which has had the highest deficit in the European Union. The main question was whether Hungary has a chance to experience short term growth effects in times of adjustment. ----- Contents: List of Figures List of Tables Acknowledgements 1. Introduction Part One: A critical Assessment of the Concept of Non-Keynesian Effects 2. Stylized Facts of EU Countries’ Major Fiscal Episodes 3. An Expectational View of Fiscal Policy: A Non-Linear Approach to Fiscal Consolidation 4. The Composition of Adjustment and the Structure of Labor Markets: A Linear Approach to Fiscal Consolidation Part Two: Testing the Institutional Conditions of Non-Keynesian Effects in Hungary 5. From Goulash Communism To Neo-Kadarism: An Overview 6. Financial Intermediation in Hungary—a Comparative Perspective 7. The Structure of the Hungarian General Budget—a Decompositional Analysis 8. The Labor Market and Wage Bargaining in Hungary—the (Ir)relevance of a Social Pact 9. Conclusion References Appendices Index

"Minimálbér-paradoxon" versenyzői munkaerőpiacon? ("Minimum-wage paradox" in a competitive labour market? Lessons from an experimental line of thought)

A versenyzői munkaerőpiac hagyományos kereslet-kínálati modellje az egyensúlyi bérszintet meghaladó minimálbér következményeként az egyensúlyi bérszint mellettinél alacsonyabb foglalkoztatást jósol; minél magasabb a minimálbér, annál alacsonyabbat. Empirikus vizsgálatok szerint ugyanakkor a minimálbér-emelés nem feltétlenül csökkenti a foglalkoztatást - ezt nevezik minimálbér-paradoxonnak -, ami legkézenfekvőbben a munkáltatók munkaerő-piaci monopszonerejével látszik magyarázhatónak. Ezzel szemben az a gondolatkísérlet, amelyről ez a cikk beszámol, általánosabb érvényű, versenyzői munkaerőpiacot feltételező magyarázat kidolgozására irányul. / === / In the conventional textbook demand/supply model of competitive labour markets, the introduction of a minimum wage above market-clearing level must reduce employment. Empirical findings suggest, however, that this may not always be the case, a finding most readily explained by monopsonistic competition in the labour market. The experimental line of thought reported here explores an alternative root, interpreting the "minimum-wage paradox" as the outcome of a competitive labour market that displays friction.

What if TTIP Changed the Regulation of Public Services ?Lessons for Europe from Developing Countries

This paper argues that the TTIP negotiators may be underestimating some of the risks associated with the treatment of public services. De facto opening the door to supranational regulation of key public services may be well intended to protect investors. But when the bargaining power of these investors operating in non-competitive markets (which is the case for most public services) becomes excessive as a result, the experience of developing countries in interactions with many of the same large players points to risks. It is likely that outcomes in terms of the usual policy criteria (efficiency, equity and fiscal viability) will not be as positive as promised in an environment in which regulation ends up weaker (because it is captured or less specialized). Ignoring these lessons and failing to internalize them in the design of negotiation is likely to cost Europe.

The negotiability of labor rights: an economic analysis

This paper shows the results of the applied research titled "Negotiating labor rights: an economic analysis", which analyzes the legal regulation on individual labor rights negotiation in Colombia from the viewpoint of basic economic principles (Economic Analysis of Law), in order to identify the inefficiencies caused by the prohibition of this type of negotiations -- After introducing the discipline of the Economic Analysis of Law, this article specifically analyzes the main legal principles that support the prohibition of individual negotiations which summed to the economic characteristics of the agents (workers), produce inefficiency in the labor markets

Train scheduling in high speed railways: considering competitive effects

The railway planning problem is usually studied from two different points of view: macroscopic and microscopic. We propose a macroscopic approach for the high-speed rail scheduling problem where competitive effects are introduced. We study train frequency planning, timetable planning and rolling stock assignment problems and model the problem as a multi-commodity network flow problem considering competitive transport markets. The aim of the presented model is to maximize the total operator profit. We solve the optimization model using realistic probleminstances obtained from the network of the Spanish railwa operator RENFE, including other transport modes in Spain

Output and labor productivity in organized manufacturing: a panel cointegration analysis for India

One of the policy puzzles faced in India during the last two and half decades has been the weak association between output and labor markets, particularly in the manufacturing sector. In this research, we investigate the long-run relationship between output, labor productivity and real wages in the case of organized manufacturing. We adjust the measure of labor productivity incorporating bottlenecks, such as lack of infrastructure, access to external finance, and labor regulations, which all may influence labor market outcomes. Using panel data from seventeen manufacturing industries, we establish long-run dynamics for the output-labor productivity-real wages series over a period of nearly three decades. We employ recently developed panel unit root and cointegration tests for cross-sectional dependence to incorporate heterogeneity across industries. Long-run elasticities are generally found to be low for labor productivity compared to real wages due to the changes in manufacturing output. There are variations across industries within the manufacturing sector for the effects of the labor market on manufacturing output. In some industries, lower wages are associated with higher output, and the reason for the positive relationship in other industries could be due to workers' bargaining power.

Visitor Relationship Management (VRM) - Repeat Visitation Opportunities for Destination Marketing Organisations

In competitive tourism markets the consumer-traveller is spoilt by choice of available destinations. Successfully differentiating a destination and getting noticed at decision time is arguably the focus of activities by destination marketing organisations (DMOs). In pursuit of differentiation, three emergent themes in the marketing literature during the past decade have been branding, integrated marketing communications (IMC), and customer relationship management (CRM) a fundamental goal of each being stimulating customer loyalty. However there has been little attention given to destination loyalty in the tourism literature. The purpose of this paper is to report an exploratory investigation of visitor relationship management (VRM) by DMOs. Based on interviews with the management of 11 regional tourism organisations (RTO) in Queensland, Australia, the opportunities for, and immediate challenges of, VRM are discussed. While each RTO recognised the potential for VRM, none had yet been able to develop a formal approach to engage in meaningful dialogue with previous visitors from their largest market.

Employer branding : strategic implications for staff recruitment

In many developed economies, changing demographics and economic conditions have given rise to increasingly competitive labour markets, where competition for good employees is strong. Consequently, strategic investments in attracting suitably qualified and skilled employees are recommended. One such strategy is employer branding. Employer branding in the context of recruitment is the package of psychological, economic, and functional benefits that potential employees associate with employment with a particular company. Knowledge of these perceptions can help organisations to create an attractive and competitive employer brand. Utilising information economics and signalling theory, we examine the nature and consequences of employer branding. Depth interviews reveal that job seekers evaluate: the attractiveness of employers based on any previous direct work experiences with the employer or in the sector; the clarity, credibility, and consistency of the potential employers’ brand signals; perceptions of the employers’ brand investments; and perceptions of the employers’ product or service brand portfolio.