A theoretical and empirical evaluation and extension of the Todaro migration model

"This paper postulates that it is theoretically and empirically preferable to base internal labor migration on the relative difference in rural-urban real income streams and rates of unemployment, taken as separate and independent variables, rather than on the difference in the expected real income streams as postulated by the very influential and often quoted Todaro model. The paper goes on to specify several important ways of extending the resulting migration model and improving its empirical performance." The analysis is based on Italian data.     

The commuting time paradox

We examine the conditions for the ‘commuting time paradox’ which states that the average commuting time does not vary between different periods. We develop therefore an equilibrium job search model with endogenously chosen commuting costs. Presuming wage bargaining between workers and firms, the optimally chosen maximum commuting costs jointly maximise the worker's and firm's payoffs. We demonstrate that when productivity levels increase over time, average commuting costs and average wages both increase, which affects the optimally chosen commuting time. We establish the conditions under which the paradox holds.     

The entropy paradox and the distribution of urban population

This paper presents an empirical application of an information theoretic approach to spatial hypothesis testing. Following the lead of Batty [1] this study employs the concept of expected information to test hypotheses concerning the distribution of urban population and population density in San Antonio for the years 1960 and 1970. Cast for the first time in a longitudinal context, major concerns of this work are the relative advantages, both theoretical and methodological, of certain entropy measures. Specifically, comparisons are made between the Shannon and the Kullback formulations. In this context of comparison, problems closely linked to what has been called the “entropy paradox” are identified and explained, suggesting important qualitative differences between these two measures.     

The paradox of China's growing under-urbanization

It is commonly believed that China began the socialist era as a very under-urbanized country relative to its level of development and that it has been eliminating this urbanization gap during the post-1978 period as a result of its economic reforms. Our reexamination of the relationship between per capita income and urbanization that underpins the conventional view suggests that China was not under-urbanized before or during the early period of the reform. Actually, China's urbanization gap appeared and grew in the late period of reform despite mass migration from rural to urban areas. This growing urbanization lag is mainly due to the slow pace in eliminating restrictions on rural–urban migration during a period of rapid economic growth. We call attention to this emerging urbanization lag as it entails significant economic costs in employment and retards economic growth.     

The paradox of inelastic sports pricing

Rodney Fort's (2004) article in Managerial and Decision Economics attempts to explain the recurrent phenomenon of inelastic ticket pricing in professional sports. In his explanation, Fort mistakenly substitutes the marginal revenue generated by the acquisition of talent for the marginal revenue generated by lowering the gate ticket price. This article corrects the mistake, pointing out that inelastic ticket pricing is still inconsistent with profit maximization. In addition, it is demonstrated that the marginal revenue generated by additional talent cannot be negative. Copyright © 2007 John Wiley & Sons, Ltd.     

Horizontal alliances and the merger paradox

Mergers and alliances are two organizational forms which allow firms to combine complementary capabilities to realize strategic goals; they are, in many cases, strategic substitutes. Managerial decision‐makers, therefore, require a framework for choosing between the two strategies. This paper contributes to this decision‐making process by highlighting one advantage of alliances over mergers. Specifically, while the profitability of a cost‐reducing horizontal merger is diminished by the resulting expansion of non‐merging competitor(s), an alliance, where partners collaborate to reduce costs but sell their product independently, enables its partners to realize the benefits of merging but avoid the problem of strengthening competitors. A model is developed which demonstrates the profitability of establishing such an alliance compared to a merger. The implications of this strategy for antitrust review are briefly discussed. Copyright © 2005 John Wiley & Sons, Ltd.     

The paradox of rising wage growth and falling inflation

• ? Strong labour markets and rising wages in advanced economies stand in sharp contrast to recent declines in economists’ inflation forecasts and market expectations. In our view, though, these developments are not necessarily contradictory. Even if wage growth edges higher, we think demand factors will limit any pick‐up in prices. Instead, we expect firms’ margins will be squeezed.
• ? Although the labour share has risen more sharply than we had expected over the past couple of years, we are sceptical that this will translate into substantially stronger underlying inflation. Not only has the rise been small, it has been employment rather than wages that has surprised to the upside. The strength of employment is probably more about firms’ production preferences than workers’ capitalising on a stronger negotiating position.
• ? True, wages adjusted for productivity now look high by historical standards. But neither theory or empirical evidence suggests that this must inevitably lead to stronger CPI inflation in the short‐term. Our forecast for flat wage growth in 2019 and the absence of strong cost pressures elsewhere are also a comfort.
• ? Inflation tends to be more responsive to demand indicators – and the recent GDP growth soft patch suggests any further pick‐up in underlying inflation pressures will be limited (see Chart below).
• ? More generally, we think that the consensus view on inflation for the key advanced economies is high. Market‐based inflation expectations are typically lower than our own, which may reflect the perception that inflation risks are skewed to the downside. Positive economic surprises could lead downside risks to narrow, but ageing expansions and secular stagnation worries suggest this is unlikely, limiting any future pick‐up in bond yields.

     

The growth paradox,sustainable development,and business strategy

Economic growth is a two-edged sword. Expanding economies and industries create wealth and employment, but global economic expansion is having unprecedented deleterious impacts on vital planetary systems. Despite this, the core strategic goal of all economies and many businesses continues to be the pursuit of ongoing economic growth. To resolve this paradox, a reconceptualization of firm-level growth is presented. I describe and discuss the organizational characteristics of the growth paradox and follow this with a metatheoretical review of economic, organizational, and ecological perspectives on growth. From this review, a typology of firm-level strategy is developed that radically reconceptualizes business growth as developmental activity primarily concerned with social–ecological flourishing. The features of this typology and its implications for business strategy are discussed according to three principles that emerged from the analysis: multidexterity, resilience thinking for design, and inclusive balance (embeddedness). Together, these strategy principles form the prerequisite management competencies needed for the development, implementation, and evaluation of sustainable business strategies. Transformative firm-level responses to the growth paradox are needed if sustaining forms of organizational growth are to be achieved and this paper presents a novel integrative framework for informing those strategies.     

The sustainable start-up paradox: Predicting the business and climate performance of start-ups

Sustainable start-ups introduce new sustainable technologies and business models that facilitate the transition to a carbon neutral economy. To understand how to create viable sustainable start-ups, we study what factors predict their business performance and climate performance (i.e., the ability of the start-up to reduce CO₂ equivalent [CO₂e] emissions) and if these contradict. A critical factor we consider is technology, which is commonly at the root of climate performance, and important for business performance because it influences a start-up's competitive advantage. Using a sample of 197 sustainable start-ups, we find a paradox between business and potential climate performance. Start-ups that exploit hardware technologies have a lower business performance but a higher potential climate performance. Through the use of mediating effects, we show that the sustainable start-up paradox is context specific. Start-ups can partly escape this paradox by focusing on novel and hardware technologies. We discuss implications for theory and practice.     

The paradox of paradoxical leadership: A multi-level conceptualization

Organizational systems are drenched in tensions and paradoxes. For a leader, addressing and engaging those tensions in constructive ways may unlock greater benefits for the followers, teams and the organization at large. A leader with a paradox mindset successfully deals with contradictory yet interdependent demands with their paradoxical thinking. While embracing these tensions leverages performance and innovation, experiencing these tensions may also lead to frustration and defensiveness, resulting in negative consequences. Considering the burgeoning importance of paradoxical leader behavior in paradox management and leadership literature, we conduct a systematic review of paradox theory of leadership. Based on the review we propose a multi-level conceptual model stating the dual effect of being a paradoxical leader. To do so, we unveil the individual and contextual factors influencing paradoxical leader behavior on the individual followers, teams and the organization. We present future research avenues and discuss theoretical and practical implications.     

The paradox of gender voting: An exploratory analysis

Voting studies have documented that white collar workers tend to vote for conservative parties and blue collar workers for parties that advance working class interests. In the United States during the era (1980–1992) of Republican Presidents Reagan and Bush, women who worked in white collar jobs tended to vote for the Democratic party and men for the more conservative Republican party. This shift created the paradox of gender voting, which this article explains. The effect of gender on vote is small but attains statistical significance due to the suppressor effect of occupation. Two interpretations of the gender effect are tested: thematerialist holds that women's occupation and class identification affect this gap; thepost-materialist suggests that affluence is pivotal. The materialist interpretation fits the data from the survey of the national election of 1984 — the middle-most election of the three won by the Republicans— but the post-materialist interpretation may explain the vote of the very affluent.To Morris Rosenberg and Roberta Simmons, fine sociologists who clarified the suppressor effect and causes of self-esteem.     

Exploring the paradox of unionised worker dissatisfaction

This paper explores the apparent paradox that while unions exist to promote the interests and well-being of their members, UK survey evidence consistently shows that union members report lower levels of job satisfaction than non-union workers. A review and further analysis of the evidence confirms that this difference persists after controlling for other factors such as type of work. If union member dissatisfaction reflects a form of voice, then we might expect to see resulting gains. An analysis of data from the 1998 Workplace Employee Relations Survey indicates that any gains are modest. Evidence is presented to suggest that although management has become less hostile to trade unions, a degree of anti-union sentiment remains, sometimes leading to a muffling of the union voice, and this helps to account for some of the union member dissatisfaction.     

The demographics of migration

The author discusses policies of encouraging immigration as a means to counteract demographic aging in developed countries. Consideration is given to policy development and the effects of migration on age distribution.     

A random walk through the Gibson paradox

Evidence to support the Gibson paradox is often given in the form of a simple correlation between the nominal interest rate and the log of price level, or in the form of a simple linear regression between these two variables. Authors then show, using standard procedures of statistical inference, that the price level possesses a significant coefficient. We argue that this class of evidence is spurious since the nominal interest rate and the price level (both integrated variables) do not form a cointegrated system.     

Employee development and voluntary turnover: testing the employability paradox

The employability paradox is a concern among employers. It states that development activities enhancing employees' employability also increase the risk for employee turnover. This study examined this paradox and probed the relationship between six development activities and voluntary turnover mediated by perceived employability. We tested both a turnover‐stimulating path via perceived external employability (i.e. perceived job alternatives with other employers) and a retention path via perceived internal employability (i.e. perceived job alternatives with the current employer) by using two‐wave longitudinal data from 588 employees. The results put the turnover risk into perspective: only upward job transition positively influenced turnover via perceived external employability. Also, the retention path via perceived internal employability was not supported: several development activities were positively related with perceived internal employability, but perceived internal employability did not influence turnover. We did, however, find a direct retention effect of skill utilisation. Overall, the results downplay the employability paradox.