labor market performance as a determinant of migration in a comparison of migrants with nonmigrants both observed and unobservable productivity factors are relevant this paper focuses more on the unobservable factors and their correlation between places of origin and destination a human capital model of migration demonstrates that more productive workers at the origin would choose to migrate only if the correlation between origin and destination factors is strongly positive longitudinal data drawn from the cote d ivoire living standards survey 1985 86 are used to examine the pattern of migration in the light of labor market performance both of wage employees and non farm self employed workers it is found that indeed the more productive workers migrate furthermore the general direction of migration is toward cities the conclusion is therefore that rural areas lose their productive workers and that urban areas may gain in productivity from the geographical shifts in population

assimilation and the earnings of young internal migrants this paper investigates if young internal migrants in the united states experience economic assimilation as they adapt to their new residential location using data from the national longitudinal survey of youth the authors examine how the hourly earnings of interstate migrants are affected by the number of years they have spent in their destination state their study indicates that internal migrants initially earn less than natives but that this wage differential disappears within a few years moreover the initial wage disadvantage of internal migrants depends upon the distance moved and economic conditions in the destination labor market copyright 1992 by mit press

migratory labor and agriculture farm workers are shown to respond strongly to economic incentives to seasonally migrate for work the economic model is specified with separate earnings structures for migratory and nonmigratory work and a reservation wage for migration is specified to reflect the choice between migratory and nonmigratory work the empirical model adjusts for self selectivity in the sample and demonstrates that domestic farm workers sort themselves into migratory and nonmigratory workers in a manner consistent with the theory of comparative advantage implications for immigration and government employment and training programs are considered

financing constraints and investment efficiency evidence from a panel of canadian forest firms this article examines the financial constraint of 18 listed canadian forest firms between 2000 and 2014 following the stochastic frontier approach empirical results support the observation that ca

host country policies and mne management control in ijvs evidence from china in international joint ventures ijvs partner firms exert three types of management control output process and social since management control critically influences ijv success it is essential to understand what factors drive the development of the control system prior studies have focused mainly on ijvs internal conditions and have largely neglected external institutional influences on ijv control in this study we explore how host country policies affect mne partners control over their ijvs using a sample of ijvs in china we find that mne partners tend to exercise less output and process control when minority equity restriction is present greater process control when they receive government incentives and less social control when they are required to partner with state owned enterprises in contrast the results of a post hoc analysis show that local partners control activities are not significantly influenced by these policies our findings provide new insights into ijv management by demonstrating the impacts of regulatory institutions on partners control activities

financial development growth and the distribution of income a paradigm is presented in which both the extent of financial intermediation and the rate of economic growth are endogenously determined financial intermediation promotes growth because it allows a higher rate of return to be earned on capital and growth in turn provides the means to implement costly financial structures thus financial intermediation and economic growth are inextricably linked in accord with the goldsmith mckinnon shaw view on economic development the model also generates a development cycle reminiscent of the kuznet hypothesis in particular in the transition from a primitive slow growing economy to a developed fast growing one a nation passes through a stage in which the distribution of wealth across the rich and poor widens

self selection and the earnings of immigrants comment in a recent article in this review borias 1987 george borjas uses a standard model of self selection to demonstrate that immigrants in the united states may not necessarily be positively selected as is commonly assumed borjas empirical results based on u s census micro data merged with country of origin characteristics for 41 sending countries however do not provide clear or consistent results with respect to the immigration selection issue although they do confirm earlier findings that the characteristics of the countries of origin of u s immigrants explain a substantial proportion of the differences in their economic status jasso and rosenzweig 1986b the purpose of this note is to show that borjas results are themselves subject to biases due to additional processes of self selection in particular his inconclusive findings with respect to immigration selectivity arise from the use of a choice based sample enlargement of his highly selective sample of countries based on the number of foreign born in the united states yields results that appear to conform much more closely and consistently to conventional wisdom namely that the united states appears to attract those persons with above average skills we also provide evidence that changes in the earnings of aggregate immigrant entry cohorts used by borjas to measure the assimilation of immigrants reflect another evidently important selection process namely selective emigration the effects of country characteristics on the wages of the foreign born at entry immigration selectivity are thus not comparable to the effects of such variables on the changes in the characteristics of an immigrant cohort over time emigration selectivity the effects via immigration self selection of country of origin characteristics on the quality q of immigrants who migrate to a destination country is neatly summarized by borjas in his equation 12 with unobservables determining earnings normally distributed the expected quality of immigrants in the united states is given by

assimilation changes in cohort quality and the earnings of immigrants this paper reexamines the empirical basis for two facts that seem to be found in most cross section studies of immigrant earnings 1 the earnings of immigrants grow rapidly as they assimilate into the united states and 2 this rapid growth leads to many immigrants overtaking the earnings of the natives within 10 15 years after immigration using the 1970 and 1980 u s censuses this paper studies the earnings growth experienced by specific immigrant cohorts during the period 1970 80 it is found that within cohort growth is significantly smaller than the growth predicted by cross section regressions for most immigrant groups this differential is consistent with the hypothesis that there has been a secular decline in the quality of immigrants admitted to the united states

immigrant and emigrant earnings a longitudinal study this paper analyzes the relationship between earnings and the extent of assimilation cohort quality change and return migration experienced by the foreign born population the study uses the longitudinal data available in the survey of natural and social scientists and engineers the analysis reveals that there was a sizable decline in the skills of this population over the last two decades in addition the study shows that return migration is more likely among immigrants who did not perform well in the u s labor market

foreign lenders and the real sector we develop a theory of the interaction between the entry of lenders and the real sector the high liquidation skills of incumbent lenders render them too tough in terminating high risk return projects being foreign to the market newcomers have lower ability to liquidate than incumbents this makes them softer in liquidating high risk return projects but renders their funding more costly we show that the entry of lenders and the share of high risk return projects can reinforce each other through firms liquidation values this interaction dampens the output impact of liquidity shocks hence financial liberalization can enhance stability

rural urban migration in economic development abstract this paper provides a review of the theoretical literature on rural urban migration in contemporary ldcs the paper begins with a brief discussion of the lewis model before going on to discuss the todaro and the harris todaro models and the large literature which these models have spawned the question of job search in the context of migration and the role of family members in migration decisions are considered next the paper then takes a closer look at the informal sector and also sets out alternative migration functions to the ones usually employed in the literature the paper concludes with a brief note on some of the important implications arising from our study

policy comparisons with an agglomeration effects augmented dual economy model abstract in this paper we incorporate urban agglomeration economies as a labor pull factor in an analysis of dual labor markets in ldcs in particular the equilibrium city size approach to urban growth and the expected income approach to rural to urban migration are synthesized making it possible to generalize results that hitherto were approach specific with the aid of a simulation based on a well specified model we exploit this synthesis to rank subsidy policies our results highlight the constructive role played by urbanization in economic development and structural change

international human resource strategy and its determinants the case of subsidiaries in taiwan this paper explores how the tension between global integration and local responsiveness affects the dimensions and determinants of international human resource ihr strategy to accomplish this jarillo and martinez s 1990 business strategy framework for parents and their subsidiaries was recast in an ihr strategy setting then the relationships between the two dimensions of ihr strategy that emerged global integration and local responsiveness and a set of interorganizational interdependency variables were explored several new and informative associations between the interorganizational interdependency variables subsidiaries dependence on parent s resources local resources and hot institutions and ihr strategy were observed in a sample of one hundred subsidiaries of japanese u s and european mncs operating in taiwan

enterprise ownership constraints and the role of equity markets in financial development the long standing controversy of the contribution of equity markets to economic development has been reactivated by the emerging markets phenomenon positive reassessments have emphasised diversification and liquidity gains for investors funding risky long lived projects the present analysis adopts instead the viewpoint of the issuer the owner controlled enterprise typical of ldcs owners wealth is a fundamental constraint on expansion when gearing is limited by bankruptcy risk and minority equity issue eases this constraint it is suggested that equity and debt are thus complementary and that stock markets may improve overall allocative efficiency if equities correctly value firm prospects

a panel analysis of job changes and unemployment abstract this paper tests for state dependence in histories of unemployment and job mobility from the first six waves of the german socio economic panel soep transitions between states of employment and unemployment are modelled as outcomes of binomial probit processes which are first and higher order markov the use of simulation estimation allows quite general intertemporal covariance structures in order to capture individual heterogeneity it is investigated how differences in human capital and other personal characteristics and macro or industry determinants such as regional unemployment growth and immigration pressure affect labour mobility

risk aversion and the earnings of us immigrants and natives the literature on the earnings of natives and immigrants has heretofore ignored differences in compensating wages for job risks it is possible that the risk involved in migration may indicate a greater willingness on the part of immigrants to accept riskier jobs than natives alternatively immigrants may attempt to protect their migration investment by choosing occupations with less risk indicating a higher degree of risk aversion this paper examines differences in risk aversion between us immigrants and natives and corresponding differentials in wage premiums for job risk our analysis suggests that on average immigrants are exposed to 21 less risk than natives but receive a 25 higher risk premium the higher degree of risk aversion of immigrants and their lower exposure to risk and thus lower earnings explains 5 of the higher observed earnings of natives we also find that earlier immigrant cohorts pre 1970 are employed in riskier jobs than are recent cohorts but the difference accounts fo

financial intermediation and endogenous growth an endogenous growth model with multiple assets is developed agents who face random future liquidity needs accumulate capital and a liquid but unproductive asset the effects of introducing financial intermediation into this environment are considered conditions are provided under which the introduction of intermediaries shifts the composition of savings toward capital causing intermediation to be growth promoting in addition intermediaries generally reduce socially unnecessary capital liquidation again tending to promote growth

patterns of control in u s uk and european multinational corporations this paper examines the type and level of control exercised by the parent headquarters of 50 u s uk and european multinational corporations over their foreign subsidiaries patterns of control in the 3 national groups differ in significant ways and these differences seem to have important implications for other characteristics of a company s organization design and managerial style

stock markets and development this paper asks if financial development especially stock market development affects the level and or the growth rate of economic activity it finds a substantial effect on both current wisdom suggests that the growth effects of financial intermediation could be either permanent or transitory for instance the greenwood jovanovic 1990 henceforth gj model has an ak stucture with no diminishing returns to the reproducible factor and a permanent exogenous improvement in financial structure would cause a permanent increase in the rate of growth on the other hand if the returns to the reproducible factor did diminish better intermediation could lead only to level effects since one should not a priori exclude either growth effects or level effects we shall look for both our search for growth effects will use the gj model our search for level effects will rely on an amended version of the mankiw romer and weil 1992 henceforth mrw structure

violence or economics what drives internal migration in guatemala politically motivated violence has plagued guatemala since 1966 the first wave of terror coincided with an antiguerilla offensive launched by the government in late 1966 2 waves of terror began in 1969 and 1970 the 4th wave of terror began in 1978 with the highest level of political violence ever 1524 individuals were killed by the guerrillas the military and death squads during the 1966 76 period but a recent study estimated that in 1986 100000 250000 individuals had moved within guatemala to escape political violence another 150000 360000 had fled guatemala to live in other countries between 31 and 7 5 of the national population the analytical core of harris todaro type model was modified to analyze the effect of violence on the migration decision the most common dependent variable used in reduced form migration equations was the probability of migrating from one location to another source and destination unemployment were entered into the migration equation from the 1981 census per capita government spending was entered into the migration equation to test whether governments contribution to aggregate demand was important in attracting migrants the first measure of violence used in the regressions was the number of politically motivated killings carried out in a department from 1966 1976 the second violence measure was per capita corpses found of individuals who had been killed for some political end violence did have an impact on migration flows at least when measured by assassinations the percentage difference between per capita assassinations in origin and destination areas was statistically significant the sign and 5 statistic on the assassinations squared variable suggested that higher levels of violence might cause the migration response to intensify but this variable was significant only at the 20 level both violence variables were statistically significant and increased origin violence did spur out migration

stock markets corporate finance and economic growth during the past decade the capitalization of emerging markets increased twentyfold in 1994 trading on these markets accounted for about 17 percent of the 9 6 trillion of shares traded on the world s stock markets up from a mere 3 percent of the much smaller 1 6 trillion in 1985 this rapid growth in emerging stock market activity raises critical questions for developing country policymakers what effect do stock markets have on economic growth how does stock market development affect firms financing decision and if stock markets are good for growth what policies can governments adopt to foster their development this note summarizes answers to these questions drawn from a recent research project

internal migration and urban employment in the third world for more than a decade michael todaros model has provided a widely accepted theoretical framework for explaining the massive flows of rural urban migration that are observed in many third world countries this paper however presents data amassed from a wide range of countries to highlight a crucial shortcoming of that model it will be shown that far from being general in nature the todaro approach is limited to explaining the movement of persons possessed of sufficient human capital to qualify them for modern sector employment the present work utilizes the perspective of the urban subsistence sector to develop a model that serves as a useful complement to that of todaro excerpt

labor markets in northeast brazil does the dual market model apply the economy of northeast brazil despite an impressive 7 real annual growth rate in recent years lags behind the rest of the country and far behind the dynamic south in particular with more than half of its 40 million residents living in poverty the region contains the largest concentration of the poor in latin america agriculture has traditionally been the dominant industry there but its importance is being eroded by the growth of manufacturing and services this shift has been aided by federal government policies which have provided jobs through direct government employment and have offered tax breaks subsidies advice and encouragement to large manufacturing firms in the region urban growth meanwhile especially in the major regional centers of recife fortaleza and salvador has swelled because of inflows of migrants by 1980 more than half of the population of what had been a predominantly rural region now lived in urban

the performance of immigrants in the canadian labor market in this article we examine the economic assimilation of immigrants to canada we provide new evidence on immigrants who arrived in the 1970s and document an increase in the dispersion of labor market outcomes across immigrants of different vintages over time our results confirm u s evidence of permanent differences across immigrant cohorts what distinguishes the canadian experience is small or negative rates of assimilation for most cohorts over the sample period finally we test the overidentification of the assimilation process specified in previous studies and fail to reject the usual cohort fixed effect specification

financial intermediation and delegated monitoring this paper develops a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders it presents a characterization of the costs of providing incentives for delegated monitoring by a financial intermediary diversification within an intermediary serves to reduce these costs even in a risk neutral economy the paper presents some more general analysis of the effect of diversification on resolving incentive problems in the environment assumed in the model debt contracts with costly bankruptcy are shown to be optimal the analysis has implications for the portfolio structure and capital structure of intermediaries

labor market differentiation in a developing economy an example from urban juba southern sudan abstract this study focuses on the nature and determinants of labor market differentiation and household level poverty in urban juba southern sudan using data collected in a recent sample survey of enterprises it finds that indices of human capital play a significant role in labor market outcomes but imperfections in the product and capital markets lead to a highly skewed distribution of income demographic factors at the household level are also important in accounting for economic status the paper concludes that income differentiation and poverty are much more diverse than the simple formal informal sector dichotomy of the labor market which is frequently found in the literature would predict

migration and the public sector a survey charney a h 1993 migration and the public sector a survey reg studies 27 3133 326 a review of the existing literature on human migration reveals relatively few studies that explicitly examine the relationships between public policy decisions and human migration flows the surveyed literature includes studies of national policies such as defence spending migration subsidies and intergovernmental transfers as well as sub national policies such as welfare and unemployment benefits state and local taxes education and other public services suggestions for incorporating public sector information into existing migration analysis frameworks and further areas of research are provided charney a h 1993 la migration et le secteur public une etude reg studies 27 313 326 faire la critique de la documentation disponible sur la migration humaine laisse voir que rares sont les etudes traitant explicitement des rapports entre la politique d etat et les flux migratoires la documentation examinee c

stock markets corporate finance and economic growth an overview the research presented here focuses on four issues first it constructs more measures or criteria of stock market development than any previous study it compares liquidity concentration volatility institutional development and international integration across forty four industrial and developing countries from 1976 to 1993 besides identifying general characteristics of these measures and defining stock market development empirically these data facilitate further research into the relationship between stock market development and financial intermediaries corporate finance decisions and economic growth these measures ranked for each country can be used for inter country comparisons of the level of stock market development in addition the data provide a basis for gauging the success of capital market development projects using objective criteria second with these new data the research investigates the relationships between stock markets and financial intermediaries third the research analyzes the relationship between stock market development and long run economic growth fourth the research studies the ties between stock market development and financing choices of firms this overview puts this research in context and reviews the main results of the study section i provides a brief review of the role of stock markets in economic development and documents the evolution of debt and equity markets during the growth process section ii defines stock market development and presents summary data on the development of financial intermediaries and stock markets section iii presents evidence on the effect of stock market development on economic growth section iv summarizes the empirical results on how stock market development affects firm financing decisions section v concludes by discussing policy implications

immigrant earnings relative to what the importance of earnings function specification and comparison points immigrant relative earnings estimates are sensitive to the choice of comparison point and the specification of earnings non sample mean comparisons borjas 1985 understate relative earnings simple earnings specifications linear education quadratic experience overstate relative earnings for both poorly and well educated immigrants specifications which ignore omitted variables understate the relative earnings of poorly educated immigrants and overstate those of well educated ones although measures of assimilation and changes in immigrant quality are insensitive to earnings specification they indicate strong earnings growth for post 1964 immigrants an overall decrease in immigrant quality and an increase in mexican immigrant quality

self selection and the earnings of immigrants reply my 1987 paper addresses a central question in the economics of immigration who are the immigrants it has been traditionally assumed that immigrants are positively selected that is immigrants are more skilled on average than the typical person in the source country one contribution of my theoretical analysis was to show that this assumption is not necessarily consistent with wealth maximizing behavior in fact under some conditions the immigrant flow may be negatively selected my original study focused only on the selection bias caused by immigrants endogenously sorting themselves out of the source country s population 2 guillermina jasso and mark rosenzweig point out that i ignored other types of selection biases in both my theoretical development and empirical framework these additional biases are due to 1 the selective emigration of the foreign born in the united states and 2 the fact that my empirical work was limited to immigrants originating in 41 source countries regarding the first of these points jasso and rosenzweig restate the well known fact that emigration or return migration is an important characteristic of the immigrant experience robert warren and jennifer marks peck 1980 for instance estimate that perhaps as many as 30 percent of immigrants leave the united states within a decade or two after their arrival jasso and rosenzweig however do not examine systematically how the selective emigration of the foreign born affects either the theory or the empirical analysis in essence their criticism simply asserts that selective emigration is likely to cause problems my 1987 paper however already made note of that fact p 538 moreover the biases caused by emigration were an integral part of my earlier critique of the econometric methodology used by most studies of immigrant earnings determination borjas 1985 pp 466 67 what is obviously needed is the generalization of both my theoretical and empirical frameworks to account for the emigration of the foreign born such a generalization however is not provided by jasso and rosenzweig and does not yet exist 3 the second point made by jasso and rosenzweig deals with the empirical results presented in my paper because i limited my analysis to immigrants originating in 41 countries the sample is not representative and serious selection biases may be at work obviously it is always better to use a more representative sample in the empirical analysis the data were limited to 41 source countries because i was concerned not only with immigrant wage levels but also with immigrant wage growth as recorded by the 2 10

bargaining power ownership and profitability of transnational corporations in developing countries as the bargaining power of the transnational corporations tncs in the sample increased relative to the bargaining power of the host country and as the desire of the tncs for a high level of equity ownership increased the percent equity ownership of the tncs in their subsidiaries increased the relationship between percent equity ownership and subsidiary success from the tncs viewpoint however was j shaped high and low levels of equity ownership were associated with high levels of success control of critical operational variables by the tnc was directly related to success

information flow expectations and job search rural to urban migration process in india abstract probabilistic migration models assume that search for urban jobs is entirely an urban based activity and that employment in free entry activities is a transitional phase during which migrants are actively searching for formal sector employment this paper tests the empirical validity of these assumptions using data collected by the author in a sample survey in delhi in 1975 76 on 1400 migrants from rural areas the evidence indicates that the migration process postulated in probabilistic models is not realistic in the case of delhi over one half of the sample had moved to delhi after lining up specific jobs a sizeable proportion expected to enter on arrival activities generally considered to be characterized by freedom of entry and the majority of entrants into free entry activities did not search for alternative employment and were engaged in the same activities at the time of the survey

urban employment and the labor market in developing nations urban employment in developing countries is actually richer and considerably more diverse and rural urban migration is less ill fated than can be inferred from the literature this paper focuses on 1 urban labor force growth 2 urban labor market structure outcomes and processes and 3 the interplay among economic growth traditional factors and the urban labor market the assumption that urban unemployment is typically high or rising has never been clearly established this review of the functioning of urban labor markets emphasizes 3 points prevailing sectoral aggregations fail as examples of dual labor markets urban wage rigidity is not typical and there are enough indications of a dispersed wage structure tending toward equilibrium the diverse migratory and employment channels and probabilities also suggest decentralized and flexible adjustments rather than a chronically unresponsive unemployment rate these leave us without an economywide theory of urban unemployment but this is not a great loss as more important and troublesome are the pervasive indicators of inequality rents and differential labor utilization and productivity that have no such simple origin and reflect the unequal endowments pockets of privilege and noncompeting traits that are endemic in the social order urbanization is an aspect of economic transformation that involves changes in location and types of economic activity capital widening activities old new input combinations the viability of traditional skills and the economic basis for self employment and entrepreneurship are relatively poorly explained by current models although traditional and modern are seen as opposing factors it is surely a mistake to see the former as extraneous to the process of economic transformation the economic value of traditional skills has been consistently underrated because of an assumption that the urban demand for them is negligible and that the rural labor force is homogenous analyses of urban employment problems in developing countries must embrace 3 neglected but promising directions 1 a focus on the range of capital widening economic activities that cannot be conveniently be classified as either traditional or modern 2 more knowledge about the differentiating elements in the complex traditional sector and 3 more in depth analysis of the microeconomic units that illuminate the choices made by firms and households in a variety of contexts

costly monitoring financial intermediation and equilibrium credit rationing abstract this paper establishes a link between equilibrium credit rationing and financial intermediation in a model with asymmetrically informed lenders and borrowers costly monitoring and investment project indivisibilities intermediation is shown to dominate borrowing and lending between individuals and these financial intermediaries exhibit several of the important features of intermediaries as we know them equilibrium interest rates and the aggregate quantity of loans respond quite differently to changes in taste and technology parameters depending on whether or not there is rationing in equilibrium

regional labor markets and the determinants of wage inequality from 1972 to 1990 the united states experienced the largest increase in wage inequality of any developed country the spread in log wages between the 90th and 10th percentiles of the male wage distribution increased by about 60 points and inequality increased within virtually every demographic or skill category of the labor force see chinhui juhn et al 1993 various explanations have been offered including changes in the relative demand for skill intensive goods international trade immigration of less skilled workers and increased labor force participation of women yet attempts to quantify the relative importance of these factors have not met with much success this leaves skill biased technical change as the residual claimant that rationalizes the data this paper uses regional differences in the evolution of wage inequality to provide new evidence on the determinants of relative wages using a model of factor demand in geographic markets i isolate contributions of i changing skill ratios in the labor force ii increased participation of women iii technical change and iv changes in the industrial composition of labor demand the data indicate that changing skill ratios and women s labor supply have affected the wages of low skilled men in the west the data indicate that increased immigration of less skilled hispanic and asian workers has adversely affected the wages of natives causing a greater increase in inequality there than in any other region of the country i modeling wage inequality in regional markets

entry versus success in the labor force young women s employment in sri lanka abstract in this paper we contribute to the understanding of women s labor force behavior in developing societies through a household level analysis of young single women in sri lanka we argue that in the context of saturated and imperfect labor markets of asian societies such as sri lanka it is important to 1 a differentiate between labor force participation and employment 2 b consider familial and cultural factors in addition to the standard determinants of labor supply and demand and 3 c examine the labor force activity of the current generation of single women in sri lanka where unemployment among young women is widespread our results strongly support the strategy of differentiating between labor force participation and employment that the determinants of these components of the employment process function in different ways is best illustrated by our findings regarding the effects of education higher education levels lead to greater labor force participation but highly educated women are also more likely to be unemployed than to be employed in addition our findings show that the labor market behavior of young women is shaped by familial expectations and resources in terms of the protected role of young daughters in the household cultural differences in the acceptability of young women working across ethnic groups the necessity for women to work across social classes and classbased advantages in access to information and channels that facilitate job acquisition

the value of u s labor market experience in the home country the case of puerto rican return migrants many immigrants to the united states and other industrialized economies eventually return to their home country more than one million foreign born persons left the united states between 1960 and 1970 1 research has documented return migration to israel italy ireland mexico and puerto rico as well as the return of thousands of guest workers from industrialized european economies in the mid seventies 2 however little is known about how the migration experience shapes the earnings profiles of returnees and how the economic standing of returnees compares to that of stayers in the home labor market in this article i analyze the transferability of human capital accumulated abroad by return migrants and the economic assimilation process of returnees i investigate if return migrants can capitalize at home on the years of labor market experience accumulated abroad i also examine whether return migrants assimilate that is if their earnings increase with time spent in the home labor market to evaluate how returnees fare in the home labor market the earnings of returnees are compared to the earnings of stayers one of the findings from the literature of immigration to the united states and other industrialized economies is that immigrants lose human capital on crossing national borders 3 it has also been noted that the earnings of immigrants grow with time spent in the host labor market suggesting that immigrants undergo a process of assimilation 4 most of the research on international return migrants is qualitative in nature and the small sample sizes caution about generalizations a large amount of this research has focused on rural communities the primary concern in the return migration literature has been the effect on local economic development 5

immigration from poor to wealthy countries experience of the united states the u s experience with immigration from poor countries is examined using the results of two projects carried out by the national bureau of economic research questions considered include what determines the supply of immigrants how such immigrants fare in the u s job market and how this immigration affects the prospects of native born workers annotation

trade aid and migrations some basic policy issues the link between trade policy and international migration is explored using data from the united states and europe we conclude that restrictive trade policies in industrialised countries have most likely added to migration pressures we then turn to the broader question of the effects of income growth in the sending countries on the propensity to migrate we argue that in relatively poor countries an increase in income will be associated with higher migration flows for middle income countries however income growth will lead to lower migrations in the medium run therefore the relationship between development levels as measured by gdp per capita and the propensity to migrate follows an inverse u pattern econometric analysis of aggregate migration flows from southern europe provides considerable support for such conjecture excerpt

efficiency and distributional implications of global restrictions on labour mobility calculations and policy implications abstract in this paper a procedure for calculating the annual efficiency gains from various alternative changes in existing global immigration restrictions is presented along with an evaluation of impacts of wage rate changes on non migrating labour a simple methodology uses data on u s dollar gnp capita across countries to infer differences in the marginal productivity of labour both between countries and across major world trading areas two key assumptions used are that the worldwide labour supply is fixed and full employment occurs in all regions differences occuring in labour s marginal product across regions are assumed to arise because of barriers to inward mobility of labour in high wage countries when these are removed labour reallocates and efficiency gains occur while the calculations are based on contentious assumptions a striking feature is the size of the annual worldwide gains in some cases annual gains can easily exceed existing worldwide gnp generated in the presence of labour mobility restrictions while all gains do not accrue to ldc s the size of the gains nonetheless suggests that this issue may be much more important to these countries than other issues raised thus far in the north south debate the losses to labour already employed in high wage countries dramatize the incentives for labour unions in the developed world to oppose liberalization

unemployment and the inter regional mobility of labour the relationship between unemployment and interregional labor migration in the united kingdom is explored using data from the labour force survey for 1984 and 1977 the authors conclude that the experience of unemployment increases the likelihood of migration and that households in areas of high unemployment are more likely to move they also find that during periods of higher overall unemployment migration propensities are reduced annotation

the mobility of labor and capital a study in international investment and labor flow list of tables acknowledgements introduction 1 foreign investment a neglected variable 2 the use of foreign workers 3 the new immigration 4 the globalization of production implications for labor migration 5 the rise of global cities and the new labor demand 6 the reconcentration of capital in the united states a new investment zone conclusion notes references index

good bye financial repression hello financial crash some unintended consequences of financial liberalization in latin america are analyzed in this paper intrinsic imperfectious in financial markets and the policy dilemmas they pose are reviewed first the stylized facts of southern cone experiments in financial liberization are then presented alternative ways of organlzing domestic capital markets under latin american conditions are discussed and an eclectic reform mongering program is proposed

does gdp distort mexico s economic performance between 1961 and 1980 mexico s gross domestic product gdp per capita grew nearly 3 50 annually during the 1980s however it shrank about 0 50 per year gdp figures suggest that there was sustained economic growth for the 1960s and 1970s changing suddenly to contraction in the 1980s this impression may be misleading gdp does not account for housework or informal production outside households further gdp also may be distorted by transactional activities which are expenditures to support transactions not actual output consumed this study recalculates output for mexico for the 1961 1990 sample period controlling for transactional activities and nonmarket production we find that gdp misstates mexico s actual economic growth in the 1960s the economy expanded more quickly than gdp suggests but in the 1970s growth was less than half that of the 1960s the economy indeed slumped in the 1980s but not as terribly as the official figures indicate mexico s economy did not collapse suddenly in the early 1980s actual economic growth had slowed dramatically during the 1970s

bargaining power of multinationals and host governments one of the outcomes of negotiation between multinationals and host governments in developing countries the extent of foreign ownership of subsidiaries is influenced by the bargaining power of the two parties foreign ownership measured in various ways appears to be affected by the level of technology of the multinational the degree to which a multinational attempts to differentiate its products the extent to which a subsidiary s output is exported to other parts of the multinational the diversity of products offered by the multinational and the extent of competition by other multinationals the relationship between some of these variables and ownership is not a simple one one variable that others have mentioned as probably affecting bargaining power size of the investment in question appears not to play a significant role in government policies toward ownership but many large projects tend to be located in countries that have lenient ownership policies

unemployment and economic development during the past thirty five years opinions on unemployment have significantly influenced our thoughts about the process of economic development in low income countries the economic strategies appropriate for governments committed to accelerating that process and the best way for the rich nations to assist in that endeavour which of the many and sometimes conflicting opinions of economists regarding the magnitude causes and costs of unemployment in ldcs reigns as the conventional wisdom at any given time is not determined by purely scientific criteria the emergence of a particular set of hypotheses as dominant may be strongly influenced by the attitudes and political preoccupations of observers as well

replacement income duration of unemployment and the migration of unemployed prime age males the relationship between the interstate migration of unemployed males of prime working age i e 25 44 years of age the level of unemployment replacement income and the duration of unemployment spells is addressed through the use of a relatively untapped data source the us census s survey of income and program participation sipp the rich set of details that are provided in this database allows a more precise empirical analysis of the above relationships than has been possible with psid cps and other previously used databases by restricting the sample to a relatively homogeneous segment of the work force its is possible to isolate better the effects of unemployment replacement income and job search duration on the migration decision of unemployed workers without the confounding effects of the variety of demographic factors that previous studies have shown to influence labour force migration the results suggest that for unemployed prime working age males the probability of migration is negativel

an assessment of the human capital content of international migrants an application to us immigration mcdowell j m and singell l d jr 1993 an assessment of the human capital content of international migrants an application to us immigration reg studies 27 351 363 numerous studies have examined the flow of international migrants generally these studies measure the extent or magnitude of international migration by use of a simple numerical count this paper extends this analysis by providing a methodology for adding an economic dimension to the measure of the magnitude of international migration an earnings equation approach is used to attach an economic value to immigration applying our methodology to us immigration we find considerable variation across source regions in the value of immigrants moreover we find that simply comparing initial earnings without controlling for differences in the characteristics and migration patterns of immigrants from the various source regions can misrepresent the relative earnings potential or value of migrants mcdowell j m et singell l d jr 1993 un

international migration versus foreign investment in the presence of unemployment abstract this paper extends the standard two factor one good model of international factor movements to include unemployment due to a minimum income guarantee within the capital abundant country from this country s perspective we establish important departures from previous full employment results most notably our analysis shows that 1 free factor mobility is worse than no mobility 2 the optimal degree of labour migration is zero and 3 national welfare can always be maximized by an optimal flow of capital the analysis is then extended to examine 1 illegal migration 2 subsidization of employment and 3 alternative views of unemployment

immigrants in the u s labor market 1940 80 this paper explores the extent and causes of the decline in immigrant skills in the united states during the postwar period prior to 1965 immigration to the united states was guided by the national origins quota system this visa allocation system awarded visas to countries based on the representation of the national origin group in the u s population as of 1920 the 1965 amendments abolished the national origins formula thus redistributing visas across source countries and established a system where visas are mainly given to relatives of u s citizens or residents the empirical analysis shows that a single factor the changing national origin mix of the immigrant flow is mainly responsible for the decline in immigrant skills excerpt

transactions costs technological choice and endogenous growth abstract hicks a theory of economic history clarendon press oxford 1969 argues that an important aspect of industrial development is the adoption of technologies requiring highly illiquid capital investments the adoption of such technologies becomes economically viable in the presence of low cost financial markets that provide liquidity to investors this observation provides a mechanism by which the costs of transacting in financial markets affect the equilibrium choice of technology productive efficiency and by implication growth we analyze how the costs of financial market transactions affect the set of technologies in use and the equilibrium growth rate transactions cost reductions may depending on the capital structure enhance or reduce growth journal of economic literature classification numbers d90 e13 g14

macroeconomic influences on migration milne w j 1993 macroeconomic influences on migration reg studies 27 365 373 the changing composition and magnitude of internal migration flows are of critical importance in determining the potential economic growth of a region yet there can be little doubt that the business cycle has a significant influence on migration flows and propensities this paper explores the effects of macroeconomic events on migration through an examination of the extent of the influence of the national and regional business cycle on the in out and net migration rates milne w j 1993 les influences macro economiques sur la migration reg studies 27 365 373 la variation de la structure et de l ampleur des flux migratoires au sein d un pays joue un role primordial dans la determination de la croissance economqiue potentielle d une region toujours est il que le cycle economique influe sensiblement sur les flux et les propensites migratoires cet article cherche a examiner les effets des evenements macro economi

financial intermediary coalitions abstract in this article an environment in which the investment opportunities of agents are private information is studied and it is shown that financial intermediaries arise endogenously within that environment it is established that financial intermediaries are part of an efficient arrangement in the sense that they are needed to support the authors private information core allocations these intermediaries which are coalitions of agents exhibit the following characteristics in equilibrium they borrow from and lend to large groups of agents they produce information about investment projects and they issue claims that have different state contingent payoffs than claims issued by ultimate borrowers

equity markets transactions costs and capital accumulation an illustration poorly developed equity markets inhibit the transfer of capital ownership moreover the costs of transacting in equity markets affect not just the level of investment but the kinds of investments that are undertaken once equity markets allow the ownership of capital to be transferred economically reductions in costs tend to favor the use of longer maturity investments when there is a relationship between the maturity of an investment and its productivity transactions cost reductions are conducive to observing certain kinds of increases in productive efficiency this article analyzes savings investment and consumption decisions by using an overlapping generation s model with two period lived agents the analysis allows for several technologies for converting current output into future capital that varies by productivity and maturity and it makes ownership of capital costly to transfer a reduction in transactions costs will typically alter the composition of savings and investment and have potentially complicated consequences for capital accumulation and steady state output

multinational parent companies influence over human resource decisions of affiliates u s firms in mexico this study provides empirical evidence for the relationship between the degree of influence u s parent companies have over the human resource decisions of their mexican affiliates and the affiliates resource dependencies on the parent company both wholly owned and joint venture affiliates are examined resource dependence was the factor most closely related to parent influence over affiliate human resource decisions the importance of an affiliate to a parent company the nationality of affiliate managers and the type of ownership arrangements were also found to affect parent influence but to lesser extents than resource dependencies

undocumented immigration and income inequality in the native born population of the us econometric evidence according to the theoretical models suggested by chiswick and others the growing presence of undocumented immigrants in the us should have a disequalizing effect on income distribution in the native born population however this proposition has not been subjected to empirical test here an econometric model of income inequality in native born households is constructed and census based estimates of the state distribution of undocumented immigrants are used to estimate model parameters the results show that such immigration has been disequalizing but that the impact has been small ranking behind several other socio economic variables

autonomy and procedural justice a framework for evaluating subsidiary strategy using the well supported dimensions of autonomy and procedural justice a four quadrant model of subsidiary strategy is proposed and a four part typology hypothesized partner collaborator militant and vassal subsidiaries a clustering process is used to develop a four group taxonomy that corresponds with the induced model the four groups of subsidiaries are analysed across seven alternative strategic dimensions integration responsiveness coordination configuration market scope product scope and value added scope the external and internal validity of the framework is confirmed and its utility discussed in terms of subsidiary s movement from one strategy state to another

measuring the income effects of migrant remittances a methodological approach applied to greece there is an ongoing debate on how the often voluminous migrant remittances are used and to what extent they contribute to the development of the migrant s country of origin there are surveys on how remittance recipients spend their income and discussions on how effective government policies are in attracting remittances in fact there is quite a literature often negative concerning the contribution of remittances to productive investment this literature looks at remittances in a variety of ways concerning the substance of the inquiry some of the writers investigate the impact of remittances as a compensating factor for the losses of the human capital invested in emigrants or in a more general way as a parameter in the overall impact of migration others discuss the impact of remittances alone separated from the impact of migration flows 2 from a methodological point of view some of the theoretical analyses are cast in macroeconomic terms and are based on a tradednontraded goods model in which labor is exchanged for remittances whereas capital is immobile 3 other writers examine the welfare effects of remittances alone or jointly with the effects of migration 4 most of this literature however focuses on the first round of remittance spending and ignores the diffused multiple effects thus producing inconclusive evidence on the impact of remittances on the economy 5 there is in particular little specific research on how aggregate output and employment are affected and very limited sectoral and regional investigation of the issue 6 this article attempts a disaggregated sectoral analysis of the income effects of remittances on consumption production imports em

savings remittances and return migration abstract using a vast west german data set the paper shows that savings and remittances of migrants can be well explained by remigration plans and economic as well as demographic variables however the planned future duration of residence in germany has a negative and significant effect only on remittances

migration theories and evidence an assessment abstract this paper presents a critical survey of theories of migration their welfare and policy implications and their empirical relevance we also develop some extensions to the theory beginning with the harris and todaro ht model in particular the ht model is extended to examine risk averse behaviour within families where the migration of members of families serves to diversify risk the welfare implications of the individual migration decision and government intervention in the form of employment subsidies are examined recent evidence on international migration is presented it is shown that migration does not flow automatically in response to wage differentials characteristics of migrants and the process of self selection are found to be important determinants of the rate of migration

an empirical analysis and extension of the bartlett and ghoshal typology of multinational companies this study offers an empirical test and extension of the bartlett and ghoshal typology of multinational companies mncs a three fold typology of multinational companies global multidomestic and transnational is developed from the literature this typology is tested using data from 166 subsidiaries of 37 mncs headquartered in 9 different countries subsidiaries in the three types of mncs are shown to differ significantly in aspects of interdependence and local responsiveness

differential economic opportunity transferability of skills and immigration to the united states and canada studies concerned with u s and canadian immigration after world war ii have been based on cross sectional data or on limited time series data and have stressed the importance of differential economic opportunity as a cause of migration in this study four vectors of variables are used to explain annual immigration to both the united states and canada 1962 1984 from a number of specific source countries economic opportunities transferability of skills level of economic development and political conditions and institutional controls that reflect the immigration policies of the two nations wage differentials several measures of skill transferability political conditions in source countries and the policy variables prove to be important determinants of u s and canadian immigration excerpt

institutional theory and the cross national transfer of employment policy the case of workforce diversity in us multinationals this paper uses a comparative institutionalist approach combined with a power interests perspective to examine the processes whereby diversity policy is internationalised by us multinational companies it argues that the process of policy transfer to uk subsidiaries is complicated by incomplete and contested institutionalisation of diversity within the us itself and by differing conceptions of diversity between the us and the uk the ability of actors within the uk subsidiaries to mobilise and deploy specific power resources allows them to resist the full implementation of corporate diversity policy leading to a range of compromise accommodations it is argued that the findings have more general implications for analysing the transfer of hr practices between national business systems

on the dynamic instability of induced migration unemployment in a dual economy abstract previous attempts to integrate the todarian analysis of rural urban migration with the dual economy growth model have relied upon an essentially static version of the migration hypothesis inappropriate in a growth context in this paper it is shown that when a dynamic version of the hypothesis is used the steady state growth equilibrium whilst characterised by a positive unemployment rate typical of todarian models is unstable these results have policy implications which differ from those presented in the previous literature

assessing the impact of interest rates in less developed countries abstract empirical results obtained do not unambiguously support what one should expect on the basis of conventional economic theory cross country evidence on the average relationship for 64 ldcs during the period 1971 1980 between some of the macroeconomic variables such as rate of growth of real gdp real financial assets saving income and investment income ratios and rate of return on investment on the one hand and the level of the real interest rate on the other is analyzed by applying a non parametric mann whitney test it is found that there is no difference with any statistical significance between the two groups of ldcs above and below the mean real interest rate this implies that the level of the real interest rate by itself has little or no impact on the selected macroeconomic variables

financial development and economic growth the role of stock markets utilizing time series methods and data from five developed economies we examine the relationship between stock market development and economic growth controlling for the effects of the banking system and stock market volatility our results support the view that although both banks and stock markets may be able to promote economic growth the erects of the former are more powerful they also suggest that the contribution of stock markets on economic growth may have been exaggerated by studies that utilize cross country growth regressions

matching strategy and human resources in multinational corporations strategy is implemented by people this article emphasizes this fundamental notion throughout the characteristics of the major strategic levels and tasks in a multinational corporation mnc are identified along with their implications for strategic human resource management through observations within 4 swedish mncs the process by which human resources have gained a place in strategic management is examined the experience of these firms in matching strategy and human resources is analyzed concluding with suggestions regarding the implications of all this for practitioners and researchers

the emergence of migration theory and a suggested new direction abstract the literature on internal labour migration is surveyed using a fourfold taxonomic scheme the potential migrant as presented in the existing literature can be viewed as a supplier of labour an investor in human capital and a consumer of regional amenities such as public goods the paper develops a fourth approach which treats the household rather than the individual as the migrating unit and which views the potential migrant as a producer of home produced commodities the continuities as well as the contrasts between the four approaches are discussed in the paper

sequential migration theory and evidence from peru abstract the standard human capital model of labor migration has been successful in explaining several empirical regularities of the migration process however there are a number of empirical facts that have not yet been explained or empirically tested among them that migrants usually perform more than one move in their lifetime return migration accounts for a very important share of total migration rates and there is a high positive correlation between in and out migration rates in the more advantageous regions this paper presents both a simple model explaining these facts and an empirical analysis using data from peru

government intervention in less developed countries the experience of multinational companies it is a fact of international business that governments intervene in the operations of foreign direct investors these government actions create a high level of uncertainty in international planning and are very costly to the foreign investor it appears however that not all firms experience the same degree of intervention within almost all nations the government appears to intervene in some foreign companies more than in others at one extreme some firms are forced out of the nation while at the other extreme firms tend to grow and prosper the purpose of this paper is first to explain these different experiences of foreign firms and then to address the question how can foreign firms reduce the amount of intervention they experience the conclusions are based on the intervention histories of more than 100 firms

multinational corporations control systems and delegation issues the paper has 2 major objectives first to identify control and delegation issues confronting multinational corporation managers second to develop a conceptual model to assist multinational corporation managers in selecting appropriate control systems and determining the extent of delegation to be provided to subsidiary managers finally the paper suggests directions for future research

patterns of strategic control within multinational corporations the management of multinational operations is often required to balance conflicting priorities between responsiveness at the national subsidiary level and central coordination for global competitiveness such balancing requires that relevant data be brought to bear on decisions that consensus be created among key managers and that relative power among them be carefully balanced in large complex mncs the balancing process can be institutionalized through the structuring of relationships between headquarters and subsidiaries

migration amongst the batswana the present study undertakes analysis of the effects of employment probabilities and wage alternatives on migration decisions in the context of botswana adopting micro level data both to estimate a multinomial migration function and to develop prediction equations for wages and likelihood of employment data are from the 1978 1979 national migration survey the factors that influence rural batswana adults to remain at home migrate to town on a short or long term basis move to another rural area or emigrate to south africa are examined consideration is given to the effects of employment alternatives on the rate of internal migration and the selectivity of movements with respect to personal household and locational factors excerpt

international trade and labor migration a theory of the relationship between international trade and labor mobility is developed that takes into account five characteristics of such migration including its temporary nature differences between migrant and native labor the acceptance of unpredictable conditions of employment by migrant labor the ready availability of further labor resources and international capital mobility particular attention is paid to the role of international labor migration in helping to insulate native populations from the rigors of industrial fluctuations and in helping to preserve import competing industries that would have succumbed without the availability of cheap imported labor

macro economic effects of changes in bank interest rates simulation results for south korea abstract we use an empirical macro econometric model of korea to simulate the impact of bank interest rate changes this model includes a very detailed sub model of the financial sector plus in addition to the usual demand side transmission channels of monetary policy a link between the financial sector and the supply side of the real part of the economy via the cost of financing working capital cavallo effect increases in time deposit rate are shown to be contractionary in the short run because the portfolio shifts they trigger tighten credit conditions and cause higher costs of financing working capital people shift out of the curbmarket rather than out of cash the higher cost of financing working capital also pushes up inflation in the first quarter after the change making the increase in td rates stagflationary this effect dies out quickly however the persistence of the loss in output is shown to depend on whether the commercial banks are allowed to play their intermediary role or not if credit limits prevent the passing through into bank loans of the influx of time deposits caused by the higher rates substantial and persistent real output losses and decreased private investment were shown to result

labor migration in europe experiences from germany after unification abstract this paper examines the effects of diverging economic conditions on labor migration within reunified germany we employ a life cycle model with consumers sovereignty regarding choice of location to derive estimates of labor migration in future periods heterogeneity of individuals is explicitly taken into account by adopting a random utility approach due to insufficient data on east west migration the results are only illustrative and have the character of educated guesstimates within limits our predictions can serve as rough indicators of potential future migration between eastern and western europe

job search and immigrant assimilation an earnings frontier approach this study examines labor market assimilation by measuring the information utilized by immigrants during job search assimilation is assumed to occur whenever such information increases with length of residence in the united states and repeated job searches the authors assert that information utilized during job search reduces differentials between actual and potential maximum attainable earnings coauthors are henry w herzog jr richard a hofler and alan m schlottmann copyright 1992 by mit press

pricing shares on a nascent market the nepal stock exchange 1994 96 abstract stimulated by their ability to facilitate privatization and to attract portfolio inflows recent literature on less developed country ldc stock exchanges has focused on relatively well established emerging markets wide international variations in the ratio of market capitalization to gdp however confirm that an important role for equity markets in economic development is not assured this study of early equity pricing in nepal therefore addresses the initial difficulties of establishing a viable exchange it investigates equity pricing in the absence of a trading history identifies favored equity characteristics and provides tentative evidence on the market valuation of liquidity before discussing policy inferences

the management of the international executive compensation and benefits process scant attention has been given to the organizational locations of the various tasks that comprise the management process responsible for the international compensation and benefits program of particular international firms the organizational locations of 3 managerial tasks associated with these compensation and benefits programs are examined in this article development of policies and procedures financing and supervision and control the article examines the management of u s expatriate and third country manager programs based on the reported practices of u s based firms representing a variety of industries management and theoretical implications of the findings are discussed

the dynamics of u s internal migration in this paper we have theoretically derived a net migration equation and estimated it using time series data for 51 u s regions over the period 1971 1988 the results indicate that the dynamic response of net migration is stable and is significantly related to stock equilibrium changes induced by amenity differentials relative employment opportunities relative real wages and industry composition excerpt