RURAL-URBAN MIGRATION AND SURPLUS LABOUR

FLEXIBLE work-hours and surplus labour in agriculture are incorporatedinto the Harris-Todaro model. Migration equilibrium is characterizedby equality of expected welfare rather than expected incomein the two sectors. Increase in expected wage still causes outnugrationfrom agriculture, but if the commodity-price ratio is exogenous,outmigration occurs when minimum wage is raised even when expectedurban wage is constant. Moreover, migration flows are largerthan in a closed economy with fixed work-hours. Implicationsof these results for determining shadow wage rate of labourand designing economic policy are also discussed.     

TRADITIONAL AND MODERN INDUSTRIES IN INDIA

In this article, the author attempts to clarify the actual condition of traditional industries and the main trends in their changes, giving a definition of their relation with modern industry. First, the author presents a definition of traditional industry, then shows statistically that small-scale industry is mainly composed of traditional industries. Second, the author investigates the existing forms of small-scale industries in terms of groups and areas, using the results of the National Sample Surveys. The detrimental factors impeding the growth and transformation of traditional industries into modern small-scale industries are also examined. Third, the author tries to clarify the reasons why the traditional industries have strongly competitive powers vis-à-vis modern industry and why they have continued to exist.     

DROUGHT AND POPULATION MOBILITY IN RURAL ETHIOPIA

Significant attention has focused on the possibility that climate change will displace large populations in the developing world, but few multivariate studies have investigated climate-induced migration. We use event history methods and a unique longitudinal dataset from the rural Ethiopian highlands to investigate the effects of drought on population mobility over a ten-year period. The results indicate that men's labor migration increases with drought and that land-poor households are most vulnerable. However, marriage-related moves by women also decrease with drought. These findings suggest a hybrid narrative of environmentally-induced migration that recognizes multiple dimensions of adaptation to environmental change.     

AGING, JOB MOBILITY, AND COMPENSATION

Age and tenure are negatively correlated with job mobility.Mobility patterns therefore change over the lifetime. In thispaper we analyze job mobility patterns and the way they changewith age and tenure. A novelty is that the effects of financialincentives (wage differentials), mobility costs, and non-financialincentives (the shadow price for physically arduous labour)are disentangled. It is shown how these elements change withage. The results confirm our hypotheses. The rapid decline inmobility with age is simultaneously caused by declining financialgains, rising costs, and a higher shadow price for older workers.     

TRADE LIBERALIZATION AND PRICE‐COST MARGIN IN INDIAN INDUSTRIES

Using panel data for 137 three‐digit industries for 1980/81 to 1997/98, the paper examines the effect of trade liberalization on price‐cost margins in Indian industries. An econometric model is estimated to explain variations in price‐cost margins, taking tariff and nontariff barriers among the explanatory variables. The results indicate that the lowering of tariffs and removal of quantitative restrictions on imports of manufactures in the 1990s had a significant pro‐competitive effect on Indian industries, particularly concentrated industries, tending to reduce the price‐cost margins. The paper notes that despite the pro‐competitive effects of trade liberalization reinforced by domestic industrial deregulation, the price‐cost margin increased in the post‐reform period in most industries and aggregate manufacturing, which is attributed to a marked fall in the growth rate of real wages and a significant reduction in labor's income share in value added in the post‐reform period, reflecting perhaps a weakening of industrial labor's bargaining power.     

LABOUR SKILLS AND HUMAN CAPITAL IN THE EXPLANATION OF TRADE PATTERNS

In the discussion of the qualitative inferences to be drawnfrom the signs of _s and c₃ [OEP 43.2 p. 448], possibilities(ii), (iii) and (iv) and the beginning of the immediately followingparagraph should read:

1. if both _s and c₃ are positive and ß₃₁> ß₃₂
2. if _s is positive and c₃ is negative theneither ß₃₁and ß₃₂ are both positive andß₃₁ > ß₃₂,or they are both negativeand |ß₃₂|>|ß₃₁|,or ß₃₁ ispositive and ß₃₂ is negative.
3. if _sis negative andc₃ is positive then either ß₃₁and ß₃₂ areboth positive and ß₃₂ < ß₃₁,or theyare both negative and |ß₃₁| > |ß₃₂|,or ß₃₁ is negative and ß₃₂ is positive.

Notice that without first confirming that _s = 0 when c³ 0 nothingmuch can be said about the factor content of trade by lookingat c₃ alone; for, in terms of signs of ß₃₁ and ß₃₂,c₃ < 0 precludes only the combination (ß₃₁ <0 & ß₃₂ > 0); and c₃ > 0 precludes onlythe combination (ß₃₁ > 0 & ß₃₂ <0). Similarly...