In honor of Michael Grossman

This symposium is to celebrate the accomplishments of Michael Grossman on the occasion of his retirement from teaching. The articles selected are all written by Mike's former students and colleagues, and were presented in a session at the 2017 Annual Meeting of the Southern Economic Association. Each of the articles celebrate Mike's scholarly legacy in developing the field of health economics.     

Productivity and trade openness in Ecuador's manufacturing industries

This study takes an empirical look at whether Ecuador's trade liberalization in the 1990s increased or decreased the productivity of Ecuadorian manufacturing establishments for the period 1997-2003. This research applies robust estimation procedures on micro-level data, controlling for a number of other economic events that may have affected productivity during the period under study. The study takes a particular look at how both exporters and import-competing sectors respond to trade openness. The results suggest evidence of a positive and significant effect of trade openness on the productivity of manufacturing industries in export-oriented industries in the years after the implementation of trade reforms, but decreasing productivity after 2000. Increased aggregate productivity might be a result of both the most productive establishments producing output, and slightly increased own-plant's productivity.     

NATIONAL TREATMENT AT THE WTO: THE ROLES OF PRODUCT AND COUNTRY HETEROGENEITY*

This paper analyzes the World Trade Organization's (WTO's) national treatment (NT) clause in a two‐country model where quality of goods and/or market size are heterogenous across countries. When market size is symmetric across countries, a reciprocal NT agreement (i) benefits the high‐quality country, (ii) hurts the low‐quality country, and (iii) delivers higher aggregate world welfare. However, such an agreement can arise in equilibrium if the high‐quality country's market is relatively bigger and the quality gap between goods is small (i.e., goods are sufficiently alike). The qualitative nature of these results does not change when quality is endogenously determined.     

A SURVEY OF THE EFFECTS OF THE MINIMUM WAGE ON PRICES

Abstract.  It is well established in the literature that minimum wage increases compress the wage distribution. Firms respond to these higher labour costs by reducing employment, reducing profits, or raising prices. While there are hundreds of studies on the employment effect of the minimum wage, there are merely a handful of studies on its profit effects, and only a couple of dozen studies on its price effects. Furthermore, a comprehensive survey on minimum wage price effects is not available in the literature. Given the policy relevance of this neglected issue, in this paper we summarize and critically compare the available evidence on the effects of minimum wages on prices.     

How numbers of the future are shaping today: The role of forecasts and calculations in public sector strategic thinking

This article examines the role of numbers in forming a city strategy in the case of Gothenburg, Sweden. The article illustrates how numbers make people act and react and shape the strategy process. The study is situated between the theoretical fields of accounting and strategy processes in cities. By relating them to the concept of ‘governmentality’, numbers are seen as helping render the city governable. Because strategizing is seen as concerning the future, the actors involved in drafting the strategy feel free to challenge historically institutionalized practices. The effect is paradoxical: the future‐looking strategy process becomes a forum for solving current problems.     

Trade-offs and disappearing acts: shifting societal discourses of diversity in Canada over three decades

In the past few decades, research on minority and disadvantaged groups in the workplace has focused on the discourse of diversity management; however, most of this research has emphasized individual and organizational discourse rather than broader, societal contexts. Our critical analysis of societal/macro level discourse explores the discursive constructions of equity and diversity in Canada, and provides original findings on how these discourses have been produced in the public sphere. We apply quantitative and qualitative textual analysis to articles published from 1986 to 2014 in The Globe and Mail, a nationally distributed newspaper, and the Canadian Employment Equity Act Annual Reports from 1988 to 2013. This paper describes a range of discursive patterns including those focusing on compliance-based equity oriented toward social justice as well as voluntary ‘diversity management’ grounded in corporate self-interest. It demonstrates important trade-offs in who is protected and promoted through the contrasting discourses, and in the types of actors legitimizing these discourses. We provide detailed evidence of these patterns by applying Habermas’ Theory of Communicative Action, and conclude with a discussion of implications for practice and for theory that are suggested in our analysis.     

Shippers’ opportunities to increase load factor: managing imbalances between required and available capacity

Improving load factor is relevant for shippers due to its potential in reducing both transport costs and emissions. The purpose is to structure shippers’ opportunities to increase load factor according to required and available capacity. A framework is developed from literature, and in-depth understanding is provided by three cases, with data mainly collected through semi-structured interviews. Shippers’ opportunities to increase load factor are structured per decreasing, increasing, or reallocating required or available capacity. Required capacity can be changed by adjusting number of items, item characteristics, and how items are combined. Available capacity can be changed by adjusting number and type of units. Changes that improved load factor are described in detail for each case. Load factor is calculated for the packaging and shipping levels. An approach that logistics managers can apply to identify opportunities relevant to their situations is presented. Findings are relevant to researchers within transport efficiency and green logistics.