The Great Compression of the 1940s: The Public versus the Private Sector

Between 1940 and 1950 wage differentials narrowed substantially, a phenomenon that economic historians have called the “Great Compression.” This paper dis-aggregates the Great Compression into changes within and between the public and private sectors. We show that wage differentials declined in the public sector as well as in the private sector; had the public sector decline not taken place, the Great Compression would have been substantially smaller. In this regard, the experience of the 1940s stands in stark contrast with that of the past two decades, during which a relatively rigid public sector wage structure has dampened overall increases in wage inequality.     

The Labor Force Participation of Older Americans in 1900: Further Results

Data from the 1900 census are used to study the proper labor force classification of older male Americans experiencing 6 months or more of unemployment (the "long-term unemployed"). The evidence is consistent with the view that the older an individual was on entering the state of long-term unemployment, the greater the likelihood that he would leave the labor force in a short period of time. I conclude, however, that this is insufficient reason to exclude the long-term unemployed from the count of gainful workers in 1900, as has recently been advocated.     

CAN INDONESIA DECENTRALISE SUCCESSFULLY? PLANS,PROBLEMS AND PROSPECTS

Indonesia is engaged in an unprecedented social and economic experiment. Responsibility for much government expenditure is being decentralised, largely to local (district) rather than to provincial governments. If this process is successful, the world's most centralised large country could become one of its most decentralised. This paper considers the issues arising as preparations for decentralisation are finalised, and as the socialisation of its plans and practices is considered by the central government, the People's Representative Council, the decentralised units of government, and the public. These issues were identified partly through interviews with local government officials. They include policy and administrative matters yet to be resolved, such as local budgeting, financial management and auditing practices, personnel decentralisation, local taxation, borrowing by local governments, and the match between revenues and expenditures. A major theme is the importance of a continuing national and local discussion on the goals and processes of decentralisation.     

Health and development∗

The linkage between development and health is clearly spelt out in the definition of primary health care by the World Health Organisation. There is a widespread and growing disillusionment with the traditional Western approach to health care which fails to meet the real demands of the Third World situation.

This paper looks briefly at conditions in the developing world and the strategy proposed by the W H O to attempt to meet the objective of health for all by the year 2000 and refers to the South African situation.     

Income distribution,economic structure and employment in South Africa

This paper discusses the impact of a redistribution of current income from the White to the Black population on the distribution of sectoral output, and total employment by means of a semi‐closed input‐output model.

The results show that a redistribution of current income towards Black households — which no doubt will have positive social and political repercussions — has a non‐negative effect on GDP and a definite positive effect on the performance of sectors with a high private consumption expenditure component, as well as on total employment.     

What Austrian Economics Can Teach Historians

Austrian economics is a valuable resource for historians. Scholars informed by Austrian insights can make better sense of historical phenomena, and can provide far better insight into economic history, than those who lack this background. It is impossible to understand events such as the Great Depression with the assistance of no theory at all, so it is essential that the historian adopt the correct one. Sound theory also prevents the historian from falling into a wide array of fallacies—about the stimulative effects of public works projects or the economic benefits of war, for instance—that have insinuated their way into so much scholarly and popular writing.