Skills,Origins and Literacy: A Comparison of the Bounty Immigrants into New South Wales in 1841, With the Convicts Resident in The Colony

In 1841, some 20,000 assisted immigrants arrived in New South Wales (including the province of Port Phillip) augmenting the existing population by approximately 15 per cent. Most of the European population consisted of convicts or ex‐convicts. The characteristics of the bounty immigrants who landed in 1841 have been analysed by McDonald and Richards, while a sample of approximately 20,000 convicts transported to New South Wales have been analysed by Nicholas et al. The main purpose of this article is to construct tables that, for the first time, compare the characteristics of all participants in the two inflows on, as far as possible, a common basis. The two groups display major differences in terms of sex, age, geographical origin, literacy, religion, and occupational skills. The novelty of this article is its provision of a new set of tables and its contextual analysis of the differences between the quantifiable characteristics of these two colonial workforces.     

The Western Australian Convicts

British convicts transported to Western Australia between 1850 and 1868 were not as positively selected regarding their human capital as early historical accounts suggest. The heights of the convicts were not statistically different from those of British prisoners who were not transported. While few were skilled, the proportion of construction workers was higher than expected, consistent with selection for the needs of the colonial government's works on infrastructure. Data on inmates of Fremantle Prison allow validation of height measurements and occupational statements in the convict list. Australian-born prisoners were taller than those who came from Britain as free immigrants.     

CONTRACTING CONVICTS: THE CONVICT LABOUR MARKET IN VAN DIEMEN's LAND 1840–1857

The place of penal transportation in Australia's economic history has always been controversial. Convict workers were frequently denigrated as worse than useless, yet without convicts the settlements would have lacked sufficient labour for development. In Van Diemen's Land in the 1840s, convicts constituted more than half the labour supply, and if emancipists are included it was more like three-quarters. After transportation to New South Wales was halted in 1840, amidst claims that the assignment of convict labour was akin to slavery, Van Diemen's Land continued to receive transportees but adopted a new form of labour management: the so-called 'probation system'. To distinguish the new probation system from the 'slavery' of assignment, wages were paid to convict workers. This study uses 17,997 convict employment contracts to explore the labour market for convict passholders at the probation period. Actions speak louder than words, and irrespective of what might have been said about convict quality, by the end of transportation in 1853 convict workers were eagerly engaged at rising wages by employers desperate for labour.     

Reinterpreting the convict labour market

The convicts transported to NSW between 1817 and 1840 were young, fit, highly literate and brought occupational skills which were broadly representative of the British and Irish working classes. In the colonial labour market where convicts were coerced, more labour was forthcoming and at a lower wage than in a free labour market. The assignment of convict labour in the colony was efficient; skilled urban and construction tradesmen were employed in the same jobs in NSW as they had held in Britain. Domestic servants and unskilled urban workers whose skills were not suited to the needs of the colony experienced job restructuring. The organization of convict workers into teams and gangs in Australia was similar to the way work was organized in free labour Britain, and a mbc of incentives and rewards characterized the extraction of work from convicts. The human capital of the transportees and the labour system within which they worked help to explain the rapid growth of the colonial economy before 1840.     

On the Puzzling Cycle in the Biological Standard of Living: The Case of Antebellum Georgia

We investigate the physical stature of Georgia convicts, both white and black, born in the first half of the 19th century. We confirm the existence of theantebellum puzzle,the decline in biological well-being at a time of general economic prosperity, for the first time in a civilian Southern population. We argue that the decline in heights was caused by such economic factors as an increase in inequality, a shift to cotton production, and a rise in the relative price of nutrients, which induced households to substitute carbohydrates for animal proteins. However, slaves fared better, and the birth cohorts of the 1840s were almost as tall as their white counterparts.     

Human capital and the pre-Famine Irish emigration to England

This paper analyzes the human capital resources of pre-Famine Irish emigrants to England. The data source comprises over 16,000 Irish and English convicts transported to New South Wales between 1817 and 1839. The convict indents distinguish between those convicts transported directly from Ireland (the stayers) and those Irish-born transportees convicted and sent from England (the emigrants). A comparison of the skill, literacy, and age characteristics of the stayers and emigrants suggests that Ireland lost skilled workers in the pre-Famine period. A logit micromigration model confirms the “brain-drain” hypothesis for Irish workers emigrating to Britain. Finally, the human capital of the Irish emigrants is found to compare favorably with that of the native English workers transported to Australia.     

Frontiers of mobility: Was Australia 1870–2017 a more socially mobile society than England?

There is longstanding pride among Australians that by throwing off the social class demarcations that defined their ossified colonial parent society, England, they created an open, socially mobile society. The paper tests this belief by estimating long run social mobility rates in Australia 1870–2017, using the status of rare surnames. The status information includes occupations from electoral rolls 1903–1980, and records of degrees awarded by Melbourne and Sydney universities 1852–2017. Status persistence was strong throughout, with an intergenerational correlation of occupational or educational status of 0.7–0.8, and no change over time. Mobility rates were also just as low within UK immigrants and their descendants, so ethnic group effects explain none of the immobility. The less pronounced class divisions of Australia compared to England did not enhance social mobility. A possible sign of enhanced Australian social mobility – the fact that surnames associated with convicts already had a modest elite status by 1870 – seems to derive from convicts transported to Australia from England being positively selected in terms of human capital.     

Criminal sentencing in 19th-century Pennsylvania

How law is interpreted and enforced at a particular historical moment reflects contemporary social concerns, attitudes and prejudices. This paper investigates the nature of criminal sentencing in 19th-century Pennsylvania. It finds that juries systematically departed from presumptive sentences based on extralegal factors, such age, sex, nativity and occupation. Older criminals and convicts with higher status preconviction occupations received longer sentences; women and ethnic minorities received shorter sentences. Unlike 20th-century courts, 19th-century courts did not impose longer sentences on black criminals.     

Old Wine in a New Bottle: Growth Convergence Dynamics in the EU

In this paper, we explore convergence of real per capita output across the European Union (EU) countries, as well as the transitional behavior of possible underlying factors that are responsible for any convergence or divergence pattern. The new panel convergence methodology developed by Phillips and Sul (2007) is employed in a production function growth accounting approach and data from the Total Economy Database and the Total Economy Growth Accounting Database. The empirical findings suggest that the EU countries form two distinct convergent clubs, exhibiting considerable heterogeneity in the underlying growth factors. These findings should help policy makers in designing appropriate growth-oriented programs as well as in setting priorities in their implementation.     

刑满释放人员再犯罪的原因分析

刑满释放人员(以下简称刑释人员)重新犯罪是一个复杂的社会问题.随着社会经济不断发展,刑释人员重新犯罪的情况已逐步成为影响社会安全与稳定的一个重要因素.     

Licensing Laws and Implications for Private Investment: The Case of Tanzania*

Abstract: This paper investigates the licensing provisions in the Electricity Ordinance of Tanganyika that are believed to influence private sector investment. There were three main strands to the analytical methodology — textual analysis, actual practice and perceptions of key stakeholders. The findings suggest that there is sufficient evidence to support the belief that the existing licensing laws in Tanzania do not provide the necessary features for attracting private investment, namely clarity, efficiency and transparency. More specifically the Electricity Ordinance of 1931 is so much outdated that it is not fit for amendment; instead it should be considered for revocation and a new law be enacted. The new law should: (a) provide for a clear licensing procedure in the sense that it should specify what activities need licence; who can apply for licence; where one can apply for licence; what documents to fill; (b) provide for efficiency‐enforcing provisions such as stipulating the time frame for the regulator to finish processing an application; (c) provide for a transparent licensing procedure in the sense that it should prescribe a large amount of openness — publishing of applications and that minutes be on open display as required in Uganda and Zimbabwe. The proposed multi‐sector regulator for utilities is a step in the right direction for it reduces the chances for regulatory capture, thus reinforcing transparency in the dealings of the regulator.     

What Drives Investor Response to CSR Performance Reports?

Recent research finds that investors' assessments of a stock's fundamental value are influenced by corporate social responsibility (CSR) performance through the affect-as-information heuristic. We extend prior research by examining two boundary conditions for the use of this heuristic: (i) whether the CSR performance relates to activities that are integrated in a firm's core business practices (material CSR issues) or not (immaterial CSR issues), and (ii) whether the CSR performance is positive or negative. Employing an experimental method, we find that the affect-as-information heuristic applies only to immaterial CSR issues but not to material CSR issues, and only to positive but not negative CSR performance. Our findings suggest that investors likely use a heuristic approach to process immaterial and positive CSR issues, and a more deliberate and systematic approach to process material or negative CSR issues. Our study has both practical and theoretical implications.     

Convict Transportation to New South Wales, 1787–1849: Mortality Rates Reconsidered

Previous research into Australian convict transportation has concluded that a significant downturn in mortality rates occurred with the appointment of naval surgeons as superintendents in 1815. Statistical analysis of convict ships sent to New South Wales between 1787 and 1849 shows a more significant downturn occurred in 1800, following the introduction of closer supervision of ships' surgeons. The contracting system established by the Navy Board in 1786 for the transportation of convicts to New South Wales could be made to work as long as government maintained an effective system of inspection and supervision.     

Do Client Bankruptcies Preceded by Clean Audit Opinions Damage Auditor Reputation?*

There is a maintained assumption within the accounting literature that client bankruptcies preceded by clean audit opinions (Type II going concern opinion (GCO) errors) damage an auditor's reputation. Consistent with this view, the PCAOB proposes that stakeholders may use Type II GCO errors as indicators of low audit quality. This study examines audit committee and investor responses to Type II GCO errors. I find no evidence that audit offices with Type II GCOs are more likely to be dismissed, have lower subsequent audit fees, or have a lower likelihood of being selected for new audit engagements. These findings are consistent with audit committees not using Type II GCO errors as indicators of low auditor quality. Using event study analysis, I find evidence of modest incremental negative investor responses for clients of audit offices with Type II GCO errors. However, these negative investor responses are found only during the financial crisis period of 2008–2010 and are observed only within windows of 30 days or less. Given this limited evidence that stakeholders do respond to Type II GCO errors, I examine whether stakeholders should respond to Type II GCO errors. I find that audit office Type II GCO errors are positively associated with subsequent restatements, an established measure of low audit quality. Taking the results as a whole, I do not find that audit offices incur substantial reputational costs for Type II GCO errors. However, the negative investor response and the positive association with restatements provide some evidence that Type II GCO errors may serve as indicators of low audit quality.     

Chasing Success: Health Sector Aid and Mortality

As many cases studies show, successful public health measures are being implemented in many places around the globe, and country-level mortality has fallen significantly in recent decades in all but a few countries. Are the two linked? Does development assistance for health (DAH) improve, on balance, recipient countries’ mortality trajectory? Using a new data source containing DAH on 96 high mortality countries, the regression analysis shows no effect of DAH on mortality. Other types of aid, including water development, also have no effect. Economic growth, on the other hand, has a strong negative effect on mortality. These findings confirm and build upon recent work by Williamson (2008) and are shown to be robust to a variety of sensitivity analyses and alternative model specifications and estimation methods.This analysis also shows that the effectiveness of DAH has not increased over time, even as the level of that funding has increased fourfold, though spending on infectious diseases and family planning may have caused small reductions in mortality. Furthermore, even though it is encouraging that DAH has tended to go where the need is highest, it also goes to states that have experienced the greatest mortality reductions in the recent past. In other words, DAH appears to be following success, rather than causing it.     

Are Risk Factor Disclosures Still Relevant? Evidence from Market Reactions to Risk Factor Disclosures Before and After the Financial Crisis

The SEC's Disclosure Effectiveness Initiative (December 2013) highlights a difference between accounting regulators and academics in their perceptions of Item 1A risk factor disclosure effectiveness. Because most academic evidence relies on pre‐financial crisis data, we compare changes in risk factor disclosure informativeness before and after the crisis as a possible explanation for this disconnect. We further explore this discrepancy by considering (i) three classes of market participants, (ii) new, discontinued, and repeated disclosures, and (iii) nonmarket outcomes. Our results confirm previous findings but indicate that those results no longer hold in the subsequent period. Specifically, we find that although equity, option, and bond markets react to unexpected risk factor disclosures in the period leading up to the financial crisis (2006–2008), the market reactions decline significantly in the post‐crisis period (2009–2014). Perhaps surprisingly, the documented changes in informativeness are not driven by disclosures repeated from one year to the next but instead result from new disclosures initiated in the current year and, in the option and debt markets, also from disclosures discontinued from the previous year. Finally, using the Altman Z‐score as an objective bankruptcy risk measure, we find that the association between risk factor disclosures and companies’ future bankruptcy risk declines significantly in the post financial crisis period. Taken together, these findings contribute to the current disclosure effectiveness debate by highlighting that risk factor disclosures, which were informative in the preceding period, become less reflective of the underlying economic risks and thus less informative to investors in the post‐crisis period. La déclaration des facteurs de risque est‐elle toujours pertinente ? Données tirées des réactions du marché à la déclaration des facteurs de risque avant et après la crise financière     

Prison crowding,recidivism, and early release in early Rhode Island

Prison crowding is a pervasive modern problem with deep historical roots. The long-term solution to crowding has been more prisons; the short-term solution is early release. Early release programs can be effective when they balance the savings of reduced prison costs against the costs of recidivism by released convicts. This paper uses historical data to investigate how prison officials altered their early release policies in the face of prison crowding and rising real detention costs. The empirical evidence is consistent with the hypothesis that prison officials make use of information about the risks of recidivism revealed at trial and during incarceration to make informed decisions about whom to release and when.     

Auditor Fees and Fraud Firms

The issue of whether auditor fees affect auditor independence has been extensively debated by regulators, investors, investment professionals, auditors, and researchers. The revised Securities and Exchange Commission (SEC) requirements that resulted from the implementation of the Sarbanes‐Oxley Act (2002) limit nonaudit services (NAS) and mandate NAS fee disclosure. The SEC's requirements are based on the argument that auditor independence could be impaired—and hence audit quality may be reduced—when auditors become economically dependent on their clients or audit their own work. Economic bonding leads to reduced independence, which can lead to reduced audit quality. We study a sample of firms sanctioned by the SEC for fraudulent financial reporting in Accounting and Auditing Enforcement Releases (SEC‐sanctioned fraud firms) and examine whether there is a relationship between auditor fee variables and the likelihood of being sanctioned by the SEC for fraud. We use SEC sanction as a measure of audit quality that has not previously been used in the auditor fee literature and is more precise than some of the other proxies used for flawed financial/auditor reporting. We find, in univariate tests, that fraud firms paid significantly higher (total, audit, and NAS) fees. However, in multivariate tests, when controlling for other fraud determinants and endogeneity among the fraud, NAS, and audit fee variables, we find that while NAS fees and total fees are positively and significantly related to the likelihood of being sanctioned by the SEC for fraud, audit fees are not. These findings suggest that higher NAS fees may cause economic bonding, thereby leading to reduced audit quality. Our findings of significantly higher NAS fees and total fees in fraud firms hold after controlling for latent size effects and other rigorous testing. These results contribute to the literature that examines the SEC's concerns regarding NAS and can be used by policy makers for additional consideration.     

The Supervision of Convict Gangs in New South Wales 1788–1830

Despite its significance as a mechanism for controlling and extracting productivity from a workforce, the nature and character of convict supervision has been largely ignored by historians. To redress this neglect, this article establishes the character of the supervision of male convicts employed in government labour gangs. It is concluded that supervision was, until at least 1822, a critically important strategy for the extraction of labour effort from convict gangs and that it was rationally designed, systematically structured and effectively performed. After 1822 supervision was much more concerned with discipline and control although it was no less sophisticated or complex.     

Credit Ratings and CEO Risk‐Taking Incentives

This study examines the sophistication of rating agencies in incorporating managerial risk‐taking incentives into their credit risk evaluation. We measure risk‐taking incentives using two proxies: the sensitivity of managerial wealth to stock return volatility (vega) and the sensitivity of managerial wealth to stock price (delta). We find that rating agencies impound managerial risk‐taking incentives in their credit risk assessments. Assuming other things equal, a one standard deviation increase in vega (delta) will lead to an approximately one‐notch (two‐notch) rating downgrade. In addition, we evaluate the significance of credit ratings in the design of CEO compensation. Our findings suggest that rating‐troubled firms will gear down managerial incentives of risk seeking. In particular, other things equal, a rating downgrade to the lower edge of the investment category (i.e., BBB?) in the immediate prior year will bring about an approximately 51 percent reduction of vega incentive from options newly granted to the CEO in the current year. However, we find no evidence that firms' rating concerns significantly affect delta. Given the significance of credit ratings in the marketplace and their close connection to accounting, the findings of the current study advance our understanding, not only of how sophisticated rating agencies are in incorporating forward‐looking information (i.e., vega and delta) into risk assessments, but of how influential the raters are in changing firms' compensation policies. The findings also have implications on the role of accounting in constraining excessive managerial risk taking with improved disclosures on managerial compensation.