Inequality and entrepreneurial thresholds

We explore the relationship between inequality and entrepreneurial activity. Drawing on cross-sectional data from a largescale survey of the economic conditions of individuals across India, we develop a number of dimensions of inequality to explore empirically how inequality interacts with entrepreneurship, operationalized as self-employment or as employing other people. We find compelling evidence that there are thresholds to becoming self-employed, and even more so to assembling the combinations of resources and personal attributes required to become an employer. Greater inequality leaves more people unable to make the transition to self-employment, leaving casual laboring as the occupation of necessity. At the same time, inequality increases the number of employers in a society, by concentrating resources - particularly land and finance - enough for significant numbers of people to be able to cross this higher threshold. Lastly, greater differentiation into social or religious groups curtails the ability to cross either entrepreneurial threshold, presumably by limiting the extent and benefits of social networks of value for entrepreneurship.     

关于消费环境的几个问题

“中消协”2006年的年主题是“消费与环境”,这一年主题具有重要的意义。3月11日,湖南省消费者委员会、湖南师大商学院和本刊编辑部在湖南师范大学商学院联合举办了一次“消费与环境”的理论研讨会,50多名专家学者出席了会议。这里选登部分发言与论文。     

收入水平对居民保险消费的影响研究--基于65个国家(或地区)的实证分析

实证分析表明,人均收入水平较低和较高的国家(或地区),居民的边际保险消费倾向较低,而人均收入水平居中的国家(或地区),居民的边际保险消费倾向较高。这一结论,对于扩大我国居民当前的保险消费具有重要的启示。     

Where Do Financial Constraints Originate from? An Empirical Analysis of Adverse Selection and Moral Hazard in Capital Markets

Despite the voluminous and growing literature on financial constraints, the origins of the constraints are hardly ever empirically analyzed. This paper offers such an analysis. We study, in particular, the empirical prevalence of adverse selection and moral hazard in capital markets using a unique survey data on Finnish small and medium-sized enterprises (SMEs). The survey data suggest that adverse selection is empirically more prevalent than moral hazard in the capital markets that the SMEs face. We also find that of the variables indicating the presence of adverse selection and moral hazard, the former has more explanatory power in regressions modeling the availability of external finance to the SMEs than the latter. Finally, we document that our proxies for adverse selection and moral hazard are inversely related to the age of firms, just like Peter Diamond’s (1989) model predicts.     

Private labels and public quality standards: How can consumer trust be restored after the mad cow crisis?

In those sectors faced with questions of food safety (meat, fruit, vegetables), new private labels have been set up in Europe in order to restore consumer trust. In this paper, we perform a theoretical analysis of these private labels. We propose an original model of vertical relationships between producers and retailers which takes into account two supply sources through (i) a competitive spot market on which the retailers buy a minimum quality standard product and (ii) supply contracts aimed at marketing higher quality private labels. We study how producers and retailers could cooperate in setting up these new labels. From a public point of view, we show the complementarity of a moderate increase in public quality standards and the creation of these new private labels. JEL Classification L22. L23. Q13. Q18     

Exploring the Effects of Union–NGO Relationships on Corporate Responsibility: The Case of the Swedish Clean Clothes Campaign

In the current era, governments are playing smaller roles in regulating workers’ rights internationally, and transnational corporations (TNCs), non-governmental organisations (NGOs) involved in the struggle for workers’ rights, and labour/trade unions have started to fill this governance gap. This paper focuses on the least researched of the relationships among these three actors, the union–NGO relationship, by analysing the ways in which it affects definitions of TNC responsibility for workers’ rights at their suppliers’ factories. Based on a qualitative study of the union–NGO relationship in the Swedish garment industry between 1996 and 2005, we propose that there are six main configurations of union–NGO relationships. By linking these configurations to their effects on TNC responsibility, we propose that co-ordination relationships between unions and NGOs, particularly high-commitment co-ordination relationships, are likely to result in a broadening of the definition of TNC responsibility, while conflictual relationships, both high and low commitment, result in a narrowing of the definition of TNC responsibility. The study indicates that co-operation is generally more beneficial for both unions and NGOs than is any form of conflictual relationship, in terms of broadening the definition of TNC responsibility.     

Globalisation and union opposition to technological change

Trade unions have a rational incentive to oppose the adoption of labour-saving technology when labour demand is inelastic and unions care much for employment relative to wages. Trade liberalisation typically increases trade union technology opposition. These conclusions are reached in a model of unionised international duopoly with two-way trade. We also find that the incentive for technology opposition is stronger in the more technologically advanced country and in the country with the larger home market, complementing earlier explanations for technological catch-up and leapfrogging.     

Country spreads and emerging countries: Who drives whom?

This paper attempts to disentangle the intricate relation linking the world interest rate, country spreads, and emerging-market fundamentals. It does so by using a methodology that combines empirical and theoretical elements. The main findings are: (1) US interest rate shocks explain about 20% of movements in aggregate activity in emerging economies. (2) Country spread shocks explain about 12% of business cycles in emerging economies. (3) In response to an increase in US interest rates, country spreads first fall and then display a large, delayed overshooting; (4) US-interest-rate shocks affect domestic variables mostly through their effects on country spreads; (5) The feedback from emerging-market fundamentals to country spreads significantly exacerbates business-cycle fluctuations.     

Mortality due to injuries in Maputo City, Mozambique

Records of all registered deaths due to injuries maintained by the Legal Medicine Department in Maputo City for the period 1 January to 31 December 2000 were reviewed. Among the 1135 registered deaths, road traffic injuries accounted for the most common underlying cause of death (43.7%), followed by firearm discharge (8.7%) and burns (7.8%). For all deaths, skull fracture (21.9%), organ system injury (17.2%) and brain tissue injury (9.3%) were the most important intermediate causes of death and among the immediate causes of death acute anaemia (21.9%) was the most common followed by asphyxia (14.4%) and traumatic shock (12.0%). Overall, most cases were seen in the age group 20-29 years (27.0%) and comprising mainly males (male/female ratio 3.1). The most commonly reported cause for the victims to sustain injuries leading to death were accidents (59.4%), followed by homicides (19.8%), unknown causes (16.1%) and suicides (4.2%). Prevention of road traffic injuries and improved emergency care and health facility-based treatment is needed to reduce injury-related mortality.     

Unobservable skill dispersion and comparative advantage

This paper investigates a theoretical mechanism linking comparative advantage to the distribution of skills in the working population. We develop a tractable multi-country, multi-industry model of trade with unobservable skills in the labour market and show that comparative advantage derives from (i) cross-industry differences in the substitutability of workers' skills and (ii) cross-country differences in the dispersion of skills. We establish the conditions under which higher skill dispersion leads to specialization in industries characterized by higher skill substitutability across tasks. The main results are robust when the model is extended to allow for partial observability of skills. Finally, we use distributions of literacy scores from the International Adult Literacy Survey to approximate cross-country productivity differences due to skill dispersion and we carry out a quantitative assessment of the impact of skill dispersion on the pattern of trade.