Employment Discrimination Based on Immigration Status: Recent Cases Involving H-1B Visas

The worldwide economic downturn has seen a reversal in previous trends toward offshore staffing and an increase in protectionism toward home country labor. However, employers in the U.S. face potential legal liability if they favor American citizens over authorized foreign guest workers in layoffs, pay decisions, and other such actions. Thus far, employers have succeeded in defending most discrimination claims involving citizenship or immigration status—which often are made by out-of-work plaintiffs unable to afford legal representation—on technical grounds such as faulty pleading, failure to exhaust administrative remedies, filing with the wrong administrative agency, or mischaracterizing immigration claims as ones involving national origin status. These results notwithstanding, a closer reading of the cases suggests that substantive liability may be a matter of growing concern as plaintiffs or their counsel learn to correct such errors. The issues are important to both sides of the employment relationship in today’s global labor market; foreign guest workers will want to better understand their responsibilities and rights, while businesses will want to better manage their legal risks. Because little if any scholarly research has addressed these matters, an exploratory case law review is presented in an effort to identify trends in fact patterns that have generated such issues. Based on the results, practical recommendations are offered for improving the management of U.S. employment relationships that involve foreign guest workers.     

Tourism and internet adoption: a developing world perspective

This paper provides a new perspective of the realities faced by small tourism enterprises in the developing world. Given the well‐recognised value of the Internet in tourism, we sought to identify how entrepreneurs mitigate Internet adoption obstacles such as the inadequate and unreliable telecommunications infrastructure, the cost of the technology, and a lack of knowledge and skills that characterise developing nations. A qualitative study was performed on small tourism enterprises in rural and metropolitan areas of Malaysia and Ecuador. We found that entrepreneurs established ways to overcome obstacles, with some applying quite innovative solutions. This paper helps to understand the role of entrepreneurs in innovation adoption and improve knowledge of Internet appropriation among small tourism enterprises in developing nations. A number of transferable lessons are identified. Copyright © 2008 John Wiley & Sons, Ltd.     

Optimal Intertemporal Consumption and Involuntary Memories of Consumption

Recent studies introduce the notion of treating autobiographical memories of past pleasurable experiences as assets and expanding the discounted utility model to include the utility of memories of past consumption. Recent studies in psychology have found that involuntary autobiographical memories are common in everyday life. This paper builds on these two strands in the literature by expanding the discounted utility model to include the utility of involuntary memories of past consumption. Optimal control theory is used to develop a continuous‐time optimal consumption model that takes into account the fact that consumption may generate involuntary memories that arrive at random times. The model is used in an in‐depth analysis of optimal consumption with memories. It is shown that memories shift consumption to earlier times. This effect gets weaker as the time horizon gets longer, and it vanishes entirely when the time horizon is infinite.     

Dollar-Deutschemark Polarisation: Comparing The Pound And Franc

The extent to which movements in the sterling and franc bilateral exchange rates are associated with changes in the dollar‐deutschemark exchange rate is measured. In the case of the pound we find, in contrast to the impression that might be gained from previous studies, that its linkage to the dollar has been, since the late 1990s, as high as it was in the late 1970s. In the case of the franc, we find that it has for some time been a powerfully deutschemark‐linked currency. This calls into question the view that there has been significant ‘dollar‐deutschemark polarity’ with respect to the franc in the recent past. We suggest that policymaker guidance and market rules of thumb may partially explain the developments we observe.     

Measuring Attitudes Towards Inequality

Individuals' attitudes to inequality aversion are measured using survey data, based on the leaky-bucket experiment, for several groups of students in Australia and Israel. Three forms of social welfare function are estimated. It is found that measures of inequality aversion can be obtained with some precision and that these estimates are substantially lower than the values typically used by those measuring inequality and examining optimal tax structures. Furthermore, a welfare function based on the Gini inequality measure is generally found to give a better fit than forms based on constant relative or constant absolute inequality aversion.
JEL Classification : C 91; D 63     

LOUD AND CLEAR? CAN WE HEAR WHEN THE SARB SPEAKS?

Inflation targeting is a forward‐looking framework for monetary policy that has brought unprecedented transparency to the process of monetary policy. This paper aims to assess the degree to which the South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has, since the introduction of inflation targeting, successfully communicated to the public its policy analysis, and, in particular, the expected future policy changes. It follows international literature in constructing a numerical index that is used to reflect the information content of the SARB's communications, specifically the monetary policy statements that accompanied each of the MPC meetings since 2000. This method allows us to judge, systematically, the degree to which the MPC has communicated successfully, and the evolution of that success over the past nine years. We find evidence that the MPC has succeeded in signalling their likely future policy decision with consistency over this period.     

Management and the representative firm revisited: the modern significance of Marshall's evolutionary economics

In an essay written in honour of Peter Swann, it is second nature to discuss some aspects of the economics of innovation, as that is the very challenging area of economic life where he has added so much to our understanding. I will attempt to do this by posing the problem of how innovation fits into the theory of value. Innovation research continues apace, but its broader systemic implications for how we understand the dynamics of capitalism are in danger of being overlooked. But two important economists, Schumpeter and Marshall, have seen the problem differently and built innovation into their theoretical schemes from the start. Marshall's theory of evolutionary change provides a natural focus for our discussion, and this is reflected in his treatment of management, in his use of the representative firm and in the variation-cum-selection dynamics of his open competitive process. We treat each of these topics and show how his evolutionary dynamics can be expressed in the Fisher/Price dynamics of evolutionary change. More generally, the key to economic development is the uneven nature of innovation and it is the uneven nature that gives economic transformation its evolutionary character. This, I suggest, is the proper legacy of Marshalls economics.     

Regulatory Effects and Strategic Global Staffing Profiles: Beyond Cost Concerns in Evaluating Offshore Location Attractiveness

The practice of offshoring—staffing all or part of a business outside the home country—has proliferated to such an extent that the question for most multinational corporations (MNCs) is where, not if, some or all of its labor forces should be located beyond geopolitical borders. It remains an open question, however, where and under what conditions the hoped-for advantages of offshore staffing are best realized. While cost savings continue to play the major role for most companies, both quality and availability of worker skills and administrative and regulatory contexts of labor markets have increasingly influenced global staffing decision processes. This paper has two purposes: to examine the extent to which employment laws and other regulatory factors can impact—beyond cost concerns alone—the decision where to offshore, and to offer a methodology for developing attractiveness profiles that can help governments, service providers, and MNCs evaluate and improve the match between staffing needs and labor market characteristics. By examining financial considerations in conjunction with administrative and regulatory effects, the parties can better manage ongoing expansion of offshore staffing arrangements beyond more established locations such as India, China, and Malaysia. Strategic implications of a trend toward nearshoring—relocating offshore operations closer to or within the home country—are also discussed.