doleful acts

Mike Fisher, an Institute of Economic Affairs' trustee and director of Whale Tankers, explains how employment legislation is a cause of unemployment.     

a planning disaster in the car park

Mike Fisher describes difficulties that Whale Tankers, a small manufacturing company, had in getting planning permission for a car park. In looking for a cause of unemployment, he argues, one has no need to look further than the planning system.     

The structure of the South African labor market, 1970–83

The structure of the labor market in the Republic of South Africa over 1970–83 is strongly linked to the Natives Land Act of 1913, No. 27, which dispossessed blacks of their legal right to land ownership. One of the intended results of this act was to increase the supply of cheap black labor to South Africa’s predominantly white-owned industry. Thus, over the 1970–83 period, as before, blacks occupied the lowest ends of the educational, occupational, employment, and income distributions among all races in South Africa. On the other hand, the white minority lived at a standard equal to that of Americans and Scandanavians. However, even within these constraints, the demographics of South Africa are such that over the next decade or more, and even in the absence of major political upheaval, blacks may comprise an increasing percentage of the workforce and occupy positions which have been mainly occupied by whites to date.     

Strategy and Circumstance: The Success of the NUJ's New Technology Policy

This article assesses the success of the National Union of Journalists (NUJ) in negotiating the introduction of computerised editorial systems (direct input) into provincial newspapers. It employs a quantitative and qualitative analysis to suggest that the NUJ has been exemplary in using the New Technology Agreement (NTA) as a bargaining tool in order to limit the negative effects of technological change and to secure notable benefits — particularly pay increases. This contrasts with other survey evidence which concludes that NTAs have fallen short of the TUC's original objectives in advocating their use. The success of the NUJ is attributed to an appropriate match between the union's new technology policy/strategy and the particular industrial circumstances. It may also explain the recent moves towards decollectivisation in the newspaper industry.     

Comparing in‐work benefits and the reward to work for families with children in the US and the UK

The income transfer systems for low‐income families in the US and the UK try both to reduce poverty and to encourage work. In‐work benefits are a key part of both countries' strategies through the earned income tax credit and the working families' tax credit (and predecessors) respectively. But tax credits are only one part of the whole tax and welfare system. In‐work benefits, taxes and welfare benefits combine in both countries to provide good financial incentives for lone parents to do minimum‐wage work, but poorer incentives to increase earnings further. But direct comparisons of budget constraints hide important points of detail. First, not enough is known about what determines take‐up of in‐work benefits. Second, the considerable differences in assessment and payment mechanisms and frequency between EITC and WFTC mean that low‐income families in the US and the UK may respond very differently to apparently similar financial incentives.     

Valuation and Cost of Capital Formulae with Corporate and Personal Taxes: A Synthesis Using the Dempsey Discounted Dividends Model

This paper advances expressions for the firm's valuation and cost of capital as a function of leverage. The framework is arrived at by introducing leverage in Dempsey's (1996 and 1998) cost of capital framework and is applicable in the context of both classical and imputation tax systems. The framework reveals that both the historical stability of corporate leverage and the firm's choice of financing structure as revealed by the Pecking Order hypothesis are consistent with a tax-based explanation.