The wages of BMI: Bayesian analysis of a skewed treatment–response model with nonparametric endogeneity

We generalize the specifications used in previous studies of the effect of body mass index (BMI) on earnings by allowing the potentially endogenous BMI variable to enter the log wage equation nonparametrically. We introduce a Bayesian posterior simulator for fitting our model that permits a nonparametric treatment of the endogenous BMI variable, flexibly accommodates skew in the BMI distribution, and whose implementation requires only Gibbs steps. Using data from the 1970 British Cohort Study, our results indicate the presence of nonlinearities in the relationships between BMI and log wages that differ across men and women, and also suggest the importance of unobserved confounding for our sample of males. Copyright © 2008 John Wiley & Sons, Ltd.     

Job quality in Europe

Promoting job quality and gender equality are objectives of the European Employment Strategy (EES) in spite of a downgrading of the attention given to both in the revised employment guidelines and the relaunch of the Lisbon Process. However, advances on both of these objectives may be important complements to the employment rate targets of the EES, as access to good quality jobs for both sexes is likely to help sustain higher employment rates. While the European Commission has a broad view of the concept of job quality in practice, it relies on a selection of labour market type indicators that say little about the quality of the actual jobs people do. Using data from the 2005 European Working Conditions survey, we analyse job quality along three dimensions: job content, autonomy and working conditions. We conclude that gender and occupational status, along with other job characteristics such as working time and sector, have more influence on an individual's job quality than the country or ‘national model’ they are situated in. Our results also demonstrate the value of developing indicators of job quality that are both gender sensitive and derived at the level of the job rather than the labour market in order to advance EU policy and academic debate on this topic.     

The effect of questionnaire length on survey response

Survey textbooks suggest that long questionnaires should be avoided, and a careful reading of the available empirical evidence confirms the negative effects of substantial length on both response rates and the quality of those responses which are obtained. Data is presented from a lengthy survey in Britain in 1987. Analysis of reasons for nonresponse to this survey suggest that length may indeed have been a significant disincentive to respond for many. However, no effect of length was found on item quality as measured by the number of responses given to open-ended questions. Unexpectedly, the variance in number of responses was greater when the questions were asked later in the questionnaire. The results are interpreted as resulting from the greater power that respondents gain as the survey proceeds.     

a sceptical beginners' guide to the dismal science

Many students of economics consider it an unrealistic subject. But as Brendan O'Rourke, of the Accountancy & Business College, Dublin, points out, its capacity to analyse complex problems lies in its capacity to make abstractions.     

‘Because it matters’

Basic economic logic, which often simplifies assessments and explanations of agricultural policy issues, is vitally important in communicating with policy-makers. Resources are limited, and there is a premium on getting decisions at least approximately right first time. Examples from southern Africa illustrate the importance of parity pricing, and its links to household food security (Lesotho), price risk, the emergence of an agricultural futures market, and its central role in allocating scarce agricultural resources (South Africa). Insights derived from an appreciation of parity pricing are relevant in other national contexts and also help explain how international grain markets operate. The parity pricing concept provides a framework for sense-checking complicated debates relating to two issues that have been prominent in recent years; first, whether and to what extent speculation in futures markets has been a driver of agricultural price spikes, and second, how far indirect land use change (ILUC), triggered by the use of agricultural feedstocks to produce renewable energy, is a material issue. These issues are likely to be of heightened importance in the face of climate change. Each emphasises that agricultural economics matters, and that it matters that we get the economics right.     

The roles of financial asset market failure denial and the economic crisis: Reflections on accounting and financial theories and practices

Throughout the world every economic and socio-economic indicator has deteriorated. The so-called ‘real economy’ has been deeply contaminated by the most significant global financial crisis for seven decades. The ultimate extent and duration of this rampant degeneration and its longer-term political effects are unpredictable but what caused the crisis? This paper examines a range of suppositions made in theories which deny the possibility of financial asset market failure and identifies ways in which they contributed to the circumstances and actions which created the current crisis.     

“You Can't Make a Good Wine without a Few Beers”: Gatekeepers and knowledge flow in industrial districts

Knowledge sharing sometimes plays a key role in the performance of clustered organizations, particularly small and medium-sized enterprises (SMEs), however, SMEs also face significant knowledge-related disadvantages due to their lack of absorptive capacity and functional expertise. This study investigates the influence of technical specialists on knowledge flow in a wine cluster in Australia. The main contribution of this paper is a finding that the technical specialist's gatekeeping role both links clustered SMEs to the global wine “systemworld” by transferring knowledge of technical developments and innovation, and simultaneously develops and refines regional winemaking styles by sharing locally specific, experientially derived knowledge. Technical specialists drew on bridging and bonding social capital to identify and retrieve specialist knowledge, and were capable of assimilating complex technical knowledge into the cluster. These findings are particularly significant because recipients were typically small and micro-firms, which are frequently located outside cluster knowledge-network.