Wages and wage policy: Australia in the Depression, 1924–34

The starting–point for this examination of the Australian wage–fixing system during the Great Depression is the recent conclusion by Gregory, Ho, and McDermott that the Commonwealth Court was ineffective in its attempt to impose a 10 per cent reduction in real wages. They argue that labour markets, centralized and decentralized, resisted the 10 per cent cut, so that wage policy played no part in the recovery from the Depression. By surveying the decisions and influence of the Commonwealth Court, and the wage–fixing institutions and wage outcomes in Victoria and New South Wales, this article concludes that the hypothesis of Gregory et al. cannot be supported. Contemporary views were closer to the mark.     

Deficit Spending in the Nazi Recovery, 1933–1938: A Critical Reassessment

This paper examines the effects of deficit spending and work-creation on the Nazi recovery, employing archival data on the public deficit and modern time series techniques. Although deficit spending was tried and full employment was reached within four years, the fiscal impulse generated by the deficits does not appear to have driven the speed of recovery. VAR forecasts of output using fiscal and monetary policy instruments suggest only a minor role for active policy during the recovery. Nazi policies deliberately crowded out private demand to ensure high rates of rearmament. Military spending dominated civilian work-creation already in 1934. Investment in autobahn construction was minimal during the recovery and gained momentum only in 1936 when full employment was approaching. Continued fiscal and monetary expansion after that date may have prevented the economy from sliding back into recession. We find some effects of the Four Years Plan of late 1936, which boosted government deficits further and tightened public control over the economy. J. Japan. Int. Econ., December 2002, 16(4), pp. 559–582. School of Business and Economics, Humboldt University of Berlin, Spandauer Strasse 1, D-10178 Berlin, Germany; and CEPR. © 2002 Elsevier Science (USA).Journal of Economic Literature Classification Numbers: N44, N14, E52, E47, E65, E27.     

Wages and Wage Inequality in South Africa 1994–2011: Part 1 – Wage Measurement and Trends

We analyse the long‐term trends in wage inequality in South Africa, using household survey data. We show that the trends in household income inequality are largely driven by changes in wage inequality. Given the detailed nature of our series we show that measurement issues and breaks in the series need to be dealt with in order to draw robust conclusions from the data. Most standard inequality measures show that wage inequality has increased over the period. Nevertheless the choice of measure matters, because there are different trends in different parts of the distribution. It appears that the distribution below the median has become more compressed, while the top of the wage distribution has moved away from the median. The inequality in the labour market translates into even higher inequality in society given that high earners tend to live together with other high earners while low wage individuals often end up sharing their incomes with the unemployed. Furthermore there are many South Africans with access to no wage income. Given the trends analysed here it is not surprising that overall inequality in South Africa has not come down or has even increased since the end of apartheid.     

Ready to stop: socioeconomic status and the fertility transition in Stockholm, 1878–1926

The western fertility decline is arguably the most significant demographic change to have occurred in the past 200 years, yet its causes and processes are still shrouded in ambiguity due to a lack of individual‐level longitudinal data. A growing body of research has helped improve our understanding of the decline's causes by examining the development of socioeconomic differences in fertility using historical micro‐data, but these have largely only considered rural areas where fertility was generally slower to decline. This article contributes to the literature by utilizing individual‐level data from the Roteman Database for Stockholm, Sweden between 1878 and 1926 to examine the association of socioeconomic status and fertility and the adoption of stopping behaviour during the city's transition. Using piecewise constant hazard models and logistic regression, we find that a clear class pattern arises in which the elite were early practitioners of fertility control, followed by the working classes. As the transition unfolded, socioeconomic differences in stopping behaviour disappeared and overall fertility differentials were also minimized, both of them being consistent with patterns observed in rural populations. The implications of these findings for major explanations of the decline are discussed in the concluding section.     

Wages and Wage Inequality in South Africa 1994–2011: Part 2 – Inequality Measurement and Trends

We analyse the long‐term trends in wage inequality in South Africa, using household survey data. We show that the trends in household income inequality are largely driven by changes in wage inequality. Given the detailed nature of our series we show that measurement issues and breaks in the series need to be dealt with in order to draw robust conclusions from the data. Most standard inequality measures show that wage inequality has increased over the period. Nevertheless the choice of measure matters, because there are different trends in different parts of the distribution. It appears that the distribution below the median has become more compressed, while the top of the wage distribution has moved away from the median. The inequality in the labour market translates into even higher inequality in society given that high earners tend to live together with other high earners while low wage individuals often end up sharing their incomes with the unemployed. Furthermore there are many South Africans with access to no wage income. Given the trends analysed here it is not surprising that overall inequality in South Africa has not come down or has even increased since the end of apartheid.     

Lewis revisited: tropical polities competing on the world market, 1830–1938

Since the seminal work by W. A. Lewis, exports of primary products have been deemed the main or sole source of growth in tropical countries before the Great Depression. However, this conventional wisdom relies on very limited evidence. This article analyses the growth of exports with a constant market share analysis for 84 tropical polities. Exports grew a lot, but less than total trade, while relative prices of tropical products remained roughly constant. We thus tentatively infer that the decline in the tropical shares of world trade reflects an insufficient demand for tropical products. Asia dealt well with these headwinds throughout the whole period, while African polities blossomed after the First World War. The loser was (South) America, and most notably the Caribbean former slave colonies, especially before 1870.