Unemployment Insurance and the Business Cycle: What Adjustments are Needed?

During the 2007–2011 economic downturn, the duration that one could collect unemployment insurance (UI) in the United States increased to an unprecedented 99 weeks, and the UI benefit amount increased by $25. This article explores the policy of increasing the generosity of UI during recessions using a model that accounts for the insurance and moral hazard implications of UI as well as the program's impact on job creation. When limited to adjusting the duration of benefits, a more generous UI system is optimal. However, due to UI's negative impact on job creation and the increased cost of providing benefits when unemployment is high, the optimal extension is just 1.3 months. When the government adjusts both the benefit amount and its duration, the optimal policy during downturns is a reduction in the replacement rate. This mitigates the decline in job creation and funds a UI extension of 4.3 months.     

AUSTRALIAN IMMIGRATION ARCHIVES AS SOURCES FOR BUSINESS AND ECONOMIC HISTORY

The administration and control of immigration to Australian during the twentieth century produced a huge archive of records of individual migrants that have potential for innovative approaches to the business and economic history of ethnic minority groups. This article describes some of these records, which have mostly been used by amateur family historians, focused on those related to Chinese immigrants before the World War II and Southern Europeans immigrants after 1945. The article gives examples of how these records can be used, suggests potential research projects, and discusses briefly some of the guides available. Several images of these archival documents are reproduced.     

Eastern European trade and the Austrian labour market

Eastern European Trade and the Austrian Labour Market. — Recent years have seen a major break in trade relations between Western and Eastern European countries. Austria experienced a large bilateral trade creation with these countries. In this paper, the authors take a closer look at the impact this trade growth had on the Austrian labour market. To differentiate as far as possible between different segments of the labour market, they concentrate on unemployment experience and wage growth for a panel of individual workers in Austrian industry. The results show rather small employment effects, the impact on wage growth is more pronounced with interesting modifications for mobile and immobile workers.     

Internal migration in West Germany and implications for East-West salary convergence

Internal Migration in West Germany and Implications for East-West Salary Convergence. — Using a simple model of gross migration, the paper shows that provided economic agents are sufficiently risk averse, migrational flows are likely to be procyclical. The econometric results confirm that flows are highly procyclical. They further indicate that changes in regional economic disparities significantly affect migrational flows. However, given the widening of regional disparities in the 1980s accompanied by a worsening in aggregate conditions, migration seems least effective in offsetting the differentiated impact of labor market shocks when it would be most useful. The paper concludes by applying the results to the issue of east-west migration and salary convergence.     

AN ECONOMY ILL-SUITED TO YOUNGER WORKERS: CHILD AND YOUTH WORKFORCE PARTICIPATION IN COLONIAL QUEENSLAND, 1886–1901

This article explores the extent and significance of child and youth work in late 19th century Australia. It demonstrates that, while demographic changes meant that almost half the population was aged 19 years or less, this age cohort never comprised more than 18 per cent of the recorded workforce. It is argued that this under-representation reflects the fact that children and youths were ill-suited to the work demands of most colonial occupations. They did not threaten the position of adult males in the key areas of the economy such as construction, heavy engineering, pastoral work, mining and transport.     

Do E‐verify mandates improve labor market outcomes of low‐skilled native and legal immigrant workers?

We examine the impact of the 2007 Legal Arizona Workers Act (LAWA) on employment outcomes of low‐skilled legal workers. We use the synthetic control method to select a group of states against which the labor market trends of Arizona can be compared. Our results suggest that contrary to its intent, LAWA does not appear to have improved labor market outcomes of legal low‐skilled workers who compete with unauthorized immigrants, the target of the legislation. In fact, we find some evidence of diminished employment and increased unemployment among legal low‐skilled workers in Arizona. These findings are concentrated on the largest demographic group of workers—non‐Hispanic white men. While they are less likely to find employment, those who do have on average higher earnings as a result of LAWA. The pattern of results points to both labor supply and labor demand contractions due to LAWA, with labor supply dominating in terms of magnitude.     

Dietary Diversity,Food Security and Undernourishment: The Vietnamese Evidence*

As is widely known, Vietnam experienced a rise in living standards and a decline in expenditure poverty during the first half of the 1990s. This paper extends this knowledge by providing evidence on the Vietnamese experience of food security, undernourishment and poverty from the late 1990s to the early part of the new millennium. The results suggest that poor households did not experience increases in food consumption, calorie intake and dietary diversity of the same magnitude as non‐poor households. Nevertheless, Vietnam experienced impressive reductions in both calorie deprivation and expenditure poverty at the turn of the century. Non‐poor households, in particular, experienced spectacular increases in calorie intake and dietary diversity during the period 1997/1998–2004. This paper also reports regression results which point to the role of urbanization and improvement in education levels in promoting dietary diversity and nutrient intake. The present study finds evidence of sharp regional differences in calorie intake and calorie costs, which suggests that the authorities should set provincial poverty lines, contrary to the current practice adopted by Vietnam's General Statistical Office.     

WHAT'S IN A NAME? RACIAL IDENTITY AND ALTRUISM IN POST‐APARTHEID SOUTH AFRICA

This paper reports the results of an economic experiment which was designed to test the effect of racial identity on generosity in a non-strategic setting. A sample of undergraduate university students was recruited to participate in a dictator game, where surnames of individuals were revealed to convey information about racial identity. Results indicate that compared to a set of control experiments where participant identity was kept anonymous, revealing racial identity has a significant and positive impact on the size of the offers made. However, while Black participants did not vary their offers based on the racial identity of their partners, White participants were more generous towards White partners than Black partners, exhibiting insider favouritism in their offers.     

MIGRATION AND ECONOMIC GROWTH IN BRAZIL: EMPIRICAL APPLICATIONS BASED ON THE SOLOW‐SWAN MODEL

The paper addresses the question of whether migration plays a role in the determination of the per capita incomes in sub‐regions of Brazil. In order to discuss this relationship, we slightly modified the Solow‐Swan model with migration to better resemble the Brazilian context. Based on this model, we determined theoretically five different possibilities for the spatial dynamics regarding net migration, human capital differentials between migrants and nonmigrants, and capital stock per effective worker. We applied this framework to census data and the microregions in Brazil were empirically classified in one or other of these possibilities with the multivariate technique of cluster analysis. Finally, we used econometric models with instrumental variables applied to panel data and observed a tendency of increase in the variability of per capita income due to migration.     

Regional Skill Structure and the Diffusion of Technology

This paper examines the relationship between the skill structure of states manufacturing sectors and technological change. Various measures of technological change are utilized including private and public R&D stocks, high-tech capital, recent capital, and the spatial spillover effects attributed to R&D stocks. We analyze the impact of changes in technology on spatial wage-bill shares, utilizing panel data for the 48 contiguous states over three sequential five-year periods. Overall, the results show a positive connection between skill upgrading and technological change. In other words, we find that states that adopt new technologies have more skilled workforces. Of particular interest, we find that publicly funded R&D stocks from neighboring states play a significant role in skill upgrading. The general implication of this finding is that geographic proximity is key to diffusing government-funded technology that enhances state economic performance. Our results strengthen the case for regional cooperation among states in developing policies to attract both private and public R&D capital.