Factors explaining the low and variable profitability of fertilizer application to maize in Zambia

It is widely recognized that an “African green revolution” will require greater use of inorganic fertilizers. Often‐made comparisons note that fertilizer use rates in Africa are just 10–20% of those in Asia, Europe and the Americas. Most attempts to explain relatively low‐adoption of fertilizer assume yield responses to inorganic fertilization warrant higher application rates and hypothesize that observed use rates are limited by market‐based factors. Another explanation may be that application rates are low because African yields are less responsive to inorganic fertilizer than yields in other regions, and less responsive than analysts perceive. Examining the case of Zambia, we evaluate whether yield response to fertilizers could explain adoption and application rates. A model of yield response is constructed and a combination of estimators is employed to mitigate potential biases related to correlation between fertilizer use and unobserved heterogeneity as well as stochastic shocks. Results indicate higher fertilization rates would be marginally profitable or unprofitable in many cases given commercial fertilizer and maize prices. Phosphoric fertilizer is particularly unprofitable on acidic soils, which are common in Zambia and other areas of sub‐Saharan Africa. We propose feasible recommendations for diversifying the current government strategy to enhance crop productivity.     

Dismissals and match-specific rents

Labor contracts that result in dismissals are quite common in the real world. The question that arises is why employers do not just offer reduced wages instead of asking workers with low realized productivity to leave. This paper argues that such behavior can be explained by workers' understandable unwillingness to agree to contracts that an employer will not have an incentive to honor in the future. Specifically, we construct a matching model in which the employer and the worker are both uncertain about the value the other places on the match. Because the worker's match-specific productivity is the employer's private information, a commitment to pay a wage equal to the worker's value of marginal product is not enforceable. In the absence of a wage guarantee, the employer will offer retained workers wages below their value of marginal product, which causes quits to be inefficiently high. The employer can reduce quits by contractually promising a guaranteed wage to retained workers. Although this will lead to some involuntary dismissals, the loss from dismissals will be less than the gain from lower quits if the wage guarantee is not too high.     

Migration of young labor force entrants

The analysis focuses on what factors encourage or discourage migration among recent high school graduates. Youth represent an important group to study because they have the highest rates of both job and location mobility in the U.S. population. Of interest to policy-makers is the role of migration in the school-to-work transition and its more general role as a manpower allocation mechanism.

The empirical specification is based on a theoretical model of individual decision-making in Black [1]. A logit model of the probability of migration is estimated separately by elapsed time since graduation, sex, and marital status. The data source consists of the National Longitudinal Study of the High School Class of 1972 that has been merged with local labor market data from the 1970 decennial census. The analysis yields several insights into the determinants of migration: local labor market conditions, an individual's employment success, migration experience before and after high school graduation, and personal characteristics such as aptitude, sex, family status, school experience, and family background.     

Size and effectiveness: a case study of a small union

This article challenges the conventional wisdom that increasing size is the key to effective trade union representation. We draw on case study research at the National Union of Lock and Metal Workers (NULMW), which has allowed certain assumptions about small and independent unions to be challenged and suggests some possible alternatives to concentration strategies as a response to a hostile environment     

Retailers in social program strategy: the case of family planning

The provision of contraceptive agents and devices through hospitals and clinics is not a cost-efficient procedure, therefore the distribution through retailers in a preexisting network is an attractive prospect. To really distribute contraceptives, e.g., birth control pills, the retailer would have to be trained in a format of questions. Two studies of retail marketing were conducted, one in Jamaica for condoms and one in Kenya where a subsidized marketing program for condoms was started in rural areas. More urban shops, which were larger in size, carried condoms than rural shops. Retailers in both areas were completely oriented to their immediate vicinity. Their concerns were with volume and with aggregate demand both before and after subsidized programs. The distribution system requires the additional support of advertising and marketing, but since the structure is in place it can be used with relatively little capital outlay. Research of retailers' attitudes and perceptions is inexpensive and often indicates customer preference and local market conditions.