Pareto-improving Immigration in an Economy with Equilibrium Unemployment

A dynamic two-country labour matching economy is presented. Workers decide whether to search in their native country or look for a job abroad (bearing an additional cost). The number of vacancies posted by firms in each country depends on the average characteristics of the workers searching inside that country. Wages are determined in an individual Nash bargain. We show the existence of multiple steady-state equilibria: one no-migration equilibrium and two migration equilibria. The multiplicity of equilibria is due to a self-fulfilling prophecy phenomenon linking average wages and incentives to migrate. The equilibria are Pareto-ranked, with migration-equilibria dominating no-migration.     

Anti-Discrimination Laws: Undermining Our Rights

The purpose of this article is to argue in favor of a private employer??s right to discriminate amongst job applicants on any basis he chooses, and this certainly includes unlawful characteristics such as race, sex, national origin, sexual preference, religion, etc. John Locke and many after him have argued that people have natural rights to life, liberty, and property or the pursuit of happiness. In this view, law should be confined to protecting these rights and be limited to prohibiting other people from transgressing those rights. The law should not hinder an employer??s ability to discriminate, any more than it should compel people to marry against their wishes. These laws generally emerge from a moral perspective that people think should be imposed on everyone else. But those who don??t welcome those morals are in effect being coerced to abide by them against their will; this is unethical. Finally, it will be argued that the free market has mechanisms by which discrimination will, be rendered powerless to harm its victims.     

Services for the underserved: unintended well-being

There is a lack of research on service consumption practices of Base of the Pyramid consumers. This study contributes to the Transformative Service Research agenda by understanding stigmatized service consumption practices and their effect on the well-being of these consumers; this has not been fully addressed until now. Additionally, it is shown that understanding the relations among consumers, communities, and informal service offerings results in the design of services with unintentional positive effects on well-being at individual, collective, and relational levels. Findings show that informal service offerings are non-discriminatory, hassle-free, jargon-free, and reputation-based. These findings pave the way to further explore such complex contexts to better understand the impact of service design on the well-being of such consumers. Positive practices can be adopted by any service industry that intends to serve that segment through the intentional redesign of offerings that are engaging, inclusive, and simple and acknowledge social standing.     

On the contribution of eco-innovation features to a circular economy: A microlevel quantitative approach

The circular economy (CE) and eco-innovation (EI) are two concepts deemed instrumental in achieving a sustainable transition. They have been proposed in the academic literature and by practitioners and have acquired very high public policy relevance, being endorsed by policymakers and ultimately leading to regulations supporting them. It has been argued that both concepts are compatible and interrelated and that EI is instrumental in achieving the CE. However, little is known about how different EI features contribute to the CE at the microlevel. This article tries to cover this gap. Its aim is to assess and quantify the causal relationship between different EI features and the CE with the help of a unique dataset of small- and medium-sized firms in Spain and an econometric analysis. Our results show that only systemic EIs contribute to a global CE, whereas other EI types such as component additions or small changes in existing production processes could even be barriers to high levels of circularity. It is found out that technological novelty is not relevant for reaching the CE. The results support the understanding of how EIs enable a transition to the CE. Care should be taken not to promote incremental EIs that do not only achieve low (or no) circularity but that effectively lock-in the economic system in solutions that entail a barrier to the achievement of high-level circularity.     

Correction to: Multinational corporations and tax havens: evidence from country‑by‑country reporting

International Tax and Public Finance - The original version of this article contained a mistake in the co-author name “Javier Garcia?Bernando”.     

A Theory of Socio‐spatial Integration: Problems,Policies and Concepts from a US Perspective

Discussions about socio‐spatial integration in the US have been primarily focused on research into residential segregation. The treatment of these two concepts as opposites has had two consequences. First, most policies for integration have been based solely on concepts of segregation. Second, the intensive criticism directed at integration flows more from those policies than from its conceptual meaning. This article develops a framework for socio‐spatial integration. It does this first by outlining an understanding of segregation and the complexities of its treatment, then by making a distinction between policy applications and the conceptual meaning of integration. This review shows that, rather than suiting a linear approach, socio‐spatial integration can be expressed as a multidimensional relationship that may work independently and at different scales. Socio‐spatial integration is then exposed as the opposite of social exclusion, of which physical proximity between different social groups is just one dimension. Two lines of research are proposed: first, a repositioning of integration as a progressive aspiration and a critique of naturalist conceptions; second, a balancing of the weight of spatial proximity among the different dimensions of integration.     

A Note on US Worker Turnover

The length of new employment relationships is of first‐order importance for a number of questions in recent macro‐labour research. We investigate it using data from the Survey of Income and Program Participation for the US from 1996 onwards, and document that above two‐fifths of newly employed workers fall into non‐employment within a year. We also find that the transition rate from employment to non‐employment within the first year varies significantly for different groups of the population, increases with the duration of the previous non‐employment spell, exhibits an acyclical or weakly procyclical pattern and a much higher volatility than the unemployment rate.     

IPO and Aftermarket Performance of Single‐Listed Chinese ADRs

This paper analyzes the post‐IPO and long‐run aftermarket performances of single‐listed Chinese ADRs during the 2004–2010 period. Single‐listed ADRs are traded daily in major exchanges in the United States, but their underlying shares are not traded in the issuer's home market. Our results show that over the short‐run, buy‐and‐hold abnormal returns of single‐listed Chinese ADRs following their IPO are not significantly different from the typical post‐IPO performance of stocks in U.S. exchanges, including that of traditional dual‐listed Chinese ADRs. Nevertheless, over the longer horizon, the excess returns of a portfolio composed solely of single‐listed Chinese ADRs outperform a portfolio of dual‐listed Chinese ADRs, but underperform a benchmark portfolio composed of U.S. firms matched on the basis of their IPO date. We also find that the portfolio formed solely of single‐listed Chinese ADRs exhibits significantly distinct loadings on the common portfolio factors from the portfolio formed of dual‐listed Chinese ADRs and from the benchmark portfolio of U.S. stocks.