Effort Elicitation,Wage Differentials and Income Distribution in A Wage‐Led Growth Regime

Motivated by the empirical evidence on endogenous labor effort and wage differentials, this paper explores implications for distribution and growth of firms using different strategies to elicit effort from workers. The frequency distribution of effort‐elicitation strategies across firms is governed by a replicator dynamic that generates wage differential as a long‐run equilibrium. Although firms willing to elicit more effort have to compensate workers with a higher wage rate, a larger proportion of firms adopting such strategy will not necessarily produce a higher wage share and thereby a higher growth rate. The intuition is that, depending on the accompanying rise in labor productivity, the wage share may not vary positively with the proportion of firms paying higher wages.     

The Wage‐Share in an Open Economy. Discussing Mexico's Experience

Mexico's wage share in manufacturing has shown a downward trend. We discuss the main factors that have shaped this evolution during the period of 1994 to 2009 and we analyze this issue on the basis of Kalecki's theory of income distribution, but adapting to an open economy. We show that, changes in the degree of monopoly and in the composition of prime costs have had a great impact on income distribution. Further, trade opening has contributed to magnify the effect on manufacturing wage share of changes in the exchange rate.     

Transiting to Work: The Role of Private Transportation for Low‐Income Households

This study examines the role of reliable vehicles in facilitating employment, using a new data set, the Iowa Transportation and Employment Survey. The empirical results document significantly higher levels of transportation problems and human capital barriers among low‐income households compared to other households and among low‐income nonworking adults compared to their employed counterparts. The multivariate analysis of low‐income households shows that employment and reliable transportation are related. Respondents without access to a reliable vehicle are less likely to be employed; those employed are more likely to have access to a reliable vehicle. Residence in an area adjacent to a metropolitan area has a positive effect on working.     

Targeting Financial Management Training at Low‐Income Audiences

While interest in financial management training programs for low‐income persons has grown in recent years, the specific training needs of low‐income consumers have not been well articulated. This article describes needed training content for such audiences, based on review of previous research and the authors’ experiences in evaluating the Financial Links for Low‐Income People (FLLIP) program. We also illustrate how the choice of financial management training models can seriously impact the subgroups of the low‐income population who attend training, as well as the success of programs in recruiting and graduating participants. The implications of these findings both for financial management curriculum development and for the selection of program models are presented.     

Tax‐Time Savings among Low‐Income Households in the $aveNYC Program

This article explores savings outcomes for participants in the $aveNYC tax‐time matched savings program compared with a group of New York City tax filers who were not offered the program. $aveNYC was administered at Volunteer Income Tax Assistance sites during the 2008–2010 tax seasons. The program offered taxpayers the opportunity to open a savings account with their tax refund and receive a 50% match on their initial deposit. The study's primary outcome is savings held by respondents 6–11 months after receipt of matching funds. We compare participants in the 2009 program cohort to a comparison group on the following outcomes: level of savings, having nonzero savings, and having enough savings to cover one or two months of expenses at current consumption levels. We find significant differences on savings levels, the presence of any savings, and the likelihood of having savings to meet one month's expenses.     

On the Systemic Fragility of Finance‐Led Growth

The paper sets up a model of economic crisis by investigating the role played by movement in asset price as a driver of the dynamic interaction between the real and the financial sectors. Such movement influences income determination in the real economy in the short period through aggregate demand leading to the emergence of two macroeconomic regimes. A short period flow model, underpinned by the stock flow consistent accounting framework, is developed to formalize the dynamics of interaction between real and financial sectors mediated by movement in asset price, generates bistability, abrupt crashes, and systemic fragility in the macroeconomic regimes.     

Borrowing Capacity and Financial Decisions of Low‐to‐Moderate Income First‐Time Homebuyers

This study documents the extent to which first‐time homebuyers seeking a mortgage accurately estimate their borrowing capacity and how this is associated with their decisions regarding mortgage debt and the take‐up of a free offer of financial coaching. We find that consumers who underestimate their nonmortgage debt (31.5% of the sample) also take out larger mortgages relative to income. Consumers who underestimate or overestimate their total debt as well as their monthly debt payments are more likely to accept the offer of financial coaching. Moreover, overconfidence in financial matters reduces the take‐up of financial coaching. These biases in perceived financial status appear to be systematically related to behavior among a group of relatively inexperienced consumers. These findings suggest that efforts to extend homeownership may need to include debiasing mechanisms to help less informed consumers accurately assess their current debt levels and ability to make ongoing mortgage payments.     

Female‐Led High‐Growth: Examining the Role of Human and Financial Resource Management

We integrate research on upper echelons theory, the resource‐based view, and gender to explore conditions that facilitate high growth for female‐led firms. We argue that female entrepreneurs have certain advantages that help them leverage their firms’ human and financial capital to achieve high growth. In support, using a sample of U.S.‐based entrepreneurial firms, we found evidence that having a female lead entrepreneur positively moderated the positive relationships between indicators of firms’ human and financial capital and high growth. The findings have implications for programs, policies, and practices to encourage more high growth in firms with female lead entrepreneurs.     

Use of Food Pantries and Food Stamps in Low‐Income Households in the United States

Using the Current Population Survey data for 1999, a bivariate probit model was estimated to determine food stamp and food pantries participation for low‐income households. Household income, the level of food insecurity, household structure, and metro versus nonmetro residence affected participation decisions in both programs. Shorter application forms for food stamp benefits encouraged food stamp participation. Food Stamp Program participation and food pantry use were found to be positively correlated.     

The Effect of Low‐ versus High‐Variance in Product Reviews on Product Evaluation

This research investigates whether the effect of low‐ versus high‐variance product reviews on the evaluation of a product about which consumers have favorable or unfavorable prior expectation can vary depending on product type, the argument quality of product reviews, and the number of reviewers. The data across three laboratory experiments demonstrate that high‐variance product reviews are more likely than low‐variance product reviews to undermine product evaluation when consumers have unfavorable prior expectation about a product. When consumers have favorable prior expectation, however, high‐variance product reviews can enhance or undermine product evaluation depending on product category, the argument quality of reviews, and the number of reviewers. The findings are explained by the type of causal attribution consumers make, such that high‐variance product reviews can allow consumers to make biased product evaluation consistent with their prior expectation when the causes of variance in the product reviews are attributed to the reviewers rather than to the product. However, when the causes of variance are attributed to the product rather than the reviewers, high‐variance product reviews can undermine product evaluation regardless of the favorability of prior expectation.     

政府主导型经济增长下的农村发展

本文试图从分析政府行为的角度来探讨造成农村经济发展相对落后的原因,并通过分析,阐明这样一个事实:无论是在重工业优先发展的赶超战略下,还是在追求经济增长的改革开放后,农村的经济发展事实上被忽视了,这种忽视源于政府在追求经济增长过程中的战略选择。今后,要想实现中国经济的持续、稳定增长,农村的发展应该受到政府更多的“关注”。     

Norm Bounds and A Homographic Approximation for the Wage–Profit Curve

This paper provides lower and upper norm bounds for the wage–profit curve in linear single‐product systems. Thus, it also constructs an algebraically simple (i.e. homographic) and empirically powerful approximation to that curve. The results finally suggest that actual economies tend to behave as ‘corn‐tractor’ systems with respect to the shape of the wage–profit curve and, at the same time, behave as three‐industry systems with respect to the shape of the production price–profit rate curves.     

Culture‐Led Discrepancies and Negotiating Conflicts in Strategic Outsourcing Alliances

Outsourcing and alliance collaboration have become prominent features of the global economy. Empirical studies demonstrate that outsourcing alliances are often not as successful as their initiators expect them to be. National cultural differences are frequently viewed as a crucial factor when such alliances fail. While empirical studies are abundant, theoretical frameworks that explicate the role of national cultural differences in shaping the dynamics of outsourcing alliances are rare. This article builds on Kumar and Nti's (1998) discrepancy model to specify how culture affects the dynamics of outsourcing alliances. We suggest that national cultural differences give rise to process and outcome discrepancies in outsourcing alliances. Notably, outsourcing alliances evolve through three stages–formation, operation and outcome–with discrepancies arising in each of these stages (Das & Teng, 2002). We develop a framework to link discrepancy management to these different stages, and to the notions of task‐oriented and relationship‐oriented cultures. Our study has a number of implications for future research and managerial practice. © 2013 Wiley Periodicals, Inc.     

Policy Options to Address Slow Income Growth and Improve Income Mobility

Over an extremely long period of time, real compensation growth does track real output growth. However, for many years the level of male compensation was unusually high relative to productivity, so much of what has happened since 1973 has been a course correction where productivity catches up. Income concentration has risen, but, typically, in the United States periods of increasing concentration have been periods of higher median income growth. The data suggest that the share of earnings going to the top 1 percent peaked around 2000, and that upward income mobility in the United States has not diminished, and is comparable to that in other nations. We do need policy changes to promote upward mobility, both indirectly by encouraging aggregate growth and targeting those that help poor children move ahead.     

Social Dialogue Over Vocational Training In Market‐Led Systems

The involvement of social partners is central to the rhetoric of the European Commission approach to vocational training. This paper explores the development of social dialogue over vocational training at the European level and in Italy and Britain, two member states characterised as having market‐led systems. The contrasting experience of the two member states suggests factors that are conducive to promoting greater social partner involvement in vocational training and demonstrates the complexity of developing a European approach.     

A Pasinettian Amend to Growth and Distribution in an Open Economy

We show that Pasinetti's insight into the relationship between the equilibrium rate of profits, the capitalists' saving ratio and the natural growth rate can be extended beyond the original formulations for a closed economy. This result does not depend on a particular hypothesis about the ownership of foreign assets and thus is of great generality.     

Decision Making by Low‐Literacy Consumers in the Presence of Point‐of‐Purchase Information

Low‐literacy consumers face disadvantages when making product choices. This article presents the results of two studies designed to explore differences in decision‐making behavior across consumer literacy levels, focusing on consumers’ ability to evaluate information in print ads and product packaging. The authors demonstrate that the presence of a visual decision aid at the point of purchase can improve choice for low‐literacy consumers.