control rights in complex partnerships this paper develops a theory of the allocation of authority between two players who are in a complex partnership that is a partnership which produces impure public goods we show that the optimal allocation depends on technological factors the parties valuations of the goods produced and the degree of impurity of these goods when the degree of impurity is large control rights should be given to the main investor irrespective of preference considerations there are some situations in which this allocation is optimal even if the degree of impurity is very low as long as one party s investment is more important than the other party s if the parties investments are of similar importance and the degree of impurity is large shared authority is optimal with a greater share going to the low valuation party if the importance of the parties investments is similar but the degree of impurity is neither large nor small the low valuation party should receive sole authority we analyze an extension in which side payments are infeasible we check for robustness of our results in several dimensions such as allowing for multiple parties or for joint authority and apply our results to interpret a number of complex partnerships including those involving schools and child custody jel d02 o23 h41 l31

international scientist mobility and the locus of knowledge and technology transfer abstract despite the growing interest of scholars and policymakers to better understand the determinants for researchers in public science to transfer knowledge and technology to firms little is known how temporary international mobility of scientists affects both their propensity to engage in knowledge and technology transfer ktt as well as the locus of such transfer based on a sample of more than 950 german academics from science and engineering faculties we investigate how the duration and the frequency of scientists visits at research institutions outside their home country affect ktt activities we find that most mobile scientists engage in ktt to firms both in the host and in their home country suggesting that ktt activities to firms abroad do not substitute or crowd out but complement ktt to firms in the home country we further find that the longer research visits abroad are the higher the likelihood that scientists engage in ktt to firms again both in the host and the home country however the more frequently scientists visit institutions abroad the more likely they are to engage in ktt to firms only in their home country our results therefore provide evidence for the benefits of brain circulation the article contributes to the growing strand of the literature on scientist mobility and on the determinants of industry science linkages at the individual level

wage bargaining central bank independence and the real effects of money the effects of financial capital mobility on monetary policy autonomy are relatively well understood but the importance of particular monetary regimes in distinct national institutional settings is not this article is a theoretical and empirical exploration of the effects of monetary policy regimes on unemployment in different national wage bargaining settings based on a rational expectations two stage game of the interaction between the wage behavior of labor unions and the monetary policies of governments i argue that monetary policies have real employment effects in all but the most decentralized bargaining systems specifically in intermediately centralized bargaining systems a credible government commitment to a nonaccommodating monetary policy rule will deter militant wage behavior with salutary effects on unemployment in highly centralized systems by contrast restrictive monetary policies will clash with unions pursuit of wage distributive goals and produce inferior employment performance only in highly fragmented bargaining systems is money neutral in the sense that employment performance is unaffected by monetary regimes the model has clear consequences for the optimal design of central banks and collective bargaining arrangements and suggests new ways to study institutional change hereunder the causal effect of increasingly globalized capital markets the argument is supported by pooled time series data for fifteen oecd countries over a twenty one year period

royalty sharing and technology licensing in universities using data for 102 u s universities we show that royalty sharing arrangements cash flow rights vary substantially across universities and that they are largely unrelated to most observed university characteristics including faculty size quality research funding technology mix of the faculty and size of the technology licensing office however higher inventors royalty shares are associated with higher licensing income at the university controlling for other factors the results suggest that monetary incentives from inventions have real effects in the university sector jel o31 o34 l3 l01

determinants of energy productivity in 39 countries an empirical investigation abstract this paper uses three types of analysis to investigate the drivers of energy productivity changes occurring in 39 countries during 1995 2009 we find that increases in sectoral energy productivity were the primary driver behind economy wide energy productivity improvements structural economic shifts away from industry and towards service oriented sectors played a lesser role in aggregate energy productivity improvements nations with similar demographic and economic characteristics showed similar levels of energy productivity and rates of improvement most notably former communist countries and nations undergoing economic liberalization exhibited the highest rate of improvement although they are still less energy productive than developed nations moreover the econometric analysis reinforces the long standing hypothesis that higher levels of income per capita and higher energy prices are associated with greater energy productivity while a greater share of output from industry is associated with lower energy productivity levels in particular higher energy prices and income levels are associated with improvements in sectoral energy productivity

globalization and the great u turn income inequality trends in 16 oecd countries the debate on the resurgence of income inequality in some advanced industrial societies has often focused on the impact of an increasingly integrated world economy typified by growing capital mobility heightened international competition and an increase in migration this study represents one of the first systematic cross national examinations of the role of globalization in the inequality u turn results indicate on the one hand that total inequality variation is principally affected by the percentage of the labor force in agriculture followed by the institutional factors union density and decommodification and only then by globalization on the other hand longitudinal variation in inequality while still dominated by the percentage of the labor force in agriculture is also principally affected by aspects of globalization such as southern import penetration and direct investment outflow and to a lesser extent by migration in other words globalization explains the longitudinal trend of inc

the transition to the knowledge economy labor market institutions and income inequality in advanced democracies the transition from fordism to the knowledge economy in the world s advanced democracies was underpinned by the revolution in information and communications technology ict the introduction and rapid diffusion of ict pushed up wages for college educated workers with complementary skills and allowed top managers and ceos to reap greater rewards for their own talents despite these common pressures income inequality did not rise to the same extent everywhere income in the anglo saxon countries remains particularly unequally distributed to shed new light on this puzzle the authors carry out a panel data analysis of eighteen oecd countries between 1970 and 2007 their analysis stands apart from the existing empirical literature by taking a comparative perspective the article examines the extent to which the relationship between the knowledge economy and income inequality is influenced by national labor market institutions the authors find that the expansion of knowledge employment is positively associated with both the 90 10 wage ratio and the income share of the top 1 percent but that these effects are mitigated by the presence of strong labor market institutions such as coordinated wage bargaining strict employment protection legislation high union density and high collective bargaining coverage the authors provide robust evidence against the argument that industrial relations systems are no longer important safeguards of wage solidarity in the knowledge economy

skill biased technological change and rising wage inequality some problems and puzzles the recent rise in wage inequality is usually attributed to skill biased technical change sbtc associated with new computer technologies we review the evidence for this hypothesis focusing on the implications of sbtc for overall wage inequality and for changes in wage differentials between groups a key problem for the sbtc hypothesis is that wage inequality stabilized in the 1990s despite continuing advances in computer technology sbtc also fails to explain the evolution of other dimensions of wage inequality including the gender and racial wage gaps and the age gradient in the return to education

when collective bargaining leads to inequality determinants of two tier provisions in canadian collective agreements this study examines two tier provisions a form of labor segmentation in firms that is increasingly formalized in collective agreements drawing on a large population of canadian collective agreemen

the direction of innovation abstract how do innovation policies affect the direction of research is market based innovation too radical or too incremental we construct a novel and tractable model of the direction of innovation firms pursue inefficient research directions because they race to discover easy yet less valuable projects and because they work on difficult inventions where they can appropriate a larger portion of the social value fixing these inefficiencies requires policy to condition on properties of inventions that could have been discovered but were not policies which do not do so like patents and prizes may fail to encourage firms to research in the efficient direction even if they obtain the optimal quantity of r d

risky business the decline of defined benefit pensions and firms shifting of risk since the early 1980s employment in the united states has undergone significant transformation as the large corporations that once safeguarded employees with stable jobs and rewards for loyalty have replaced these employment relationships with ones based on cost containment and flexibility one important consequence of these developments is that firms have abdicated their role as a critical risk bearer in society although evidence suggests that firms have increasingly shifted market risks onto their workforce to date there have been few detailed analyses exploring what factors have driven this phenomenon this study adds to our understanding of why firms have transferred risk to their employees by examining the decline of a highly institutionalized practice wherein large u s firms used to bear retirement risk the defined benefit db pension plan through a detailed analysis i show that variance in the presence power and interests of shareholders and employees at the firm level differentially affect a firm s willingness to shift the risk of retirement onto its workers specifically i demonstrate empirically that different types of shareholders have differential effects on a firm s retirement practices suggesting that the changing equity ownership structure of large u s firms has played a key role in how risk is allocated between workers and firms declines in employee power have also played a role because firm levels of unionization positively affect rates of db participation for both unionized and nonunionized workers

the rise of the super rich power resources taxes financial markets and the dynamics of the top 1 percent 1949 to 2008 the income share of the super rich in the united states has grown rapidly since the early 1980s after a period of postwar stability what factors drove this change in this study we investigate the institutional policy and economic shifts that may explain rising income concentration we use single equation error correction models to estimate the long and short run effects of politics policy and economic factors on pretax top income shares between 1949 and 2008 we find that the rise of the super rich is the result of rightward shifts in congress the decline of labor unions lower tax rates on high incomes increased trade openness and asset bubbles in stock and real estate markets

fictitious freedom a polanyian critique of the republican revival prominent republican theorists invoke anonymous orders such as the market as mechanisms that secure freedom as non domination drawing on karl polanyi s account of fictitious commodities and demonstration of the impossibility of a just and rational market society this article critically scrutinizes neo republican assumptions regarding the market develops an alternate social theory within which to situate the ideal of non domination and illustrates the importance of this reconfiguration for the kind of collective agents and political strategies that can be expected to advance republican freedom in the economy

how valuable is patent protection estimates by technology field i present evidence on the private value of patent rights in france for different technology fields and nationalities of ownership using nonparametric techniques and a parametric model of patent renewal i find that the distribution of the value of patent rights is highly skewed that patent protection is a significant but not the major source of private returns to r d and that these characteristics vary across technology fields i compute the r d cash subsidy that is equivalent to the value of patent rights measure the variations in value of time technology fields and nationalities and show that these differences are correlated with patent grant rates

corporate mobilization and political power the transformation of u s economic policy in the 1970s despite their otherwise divergent arguments pluralist state centered and neo marxist relative autonomy conceptions of political power in capitalist societies share the view that the capitalist class is generally incapable of unified political action yet a striking feature of policy struggles in the united states between 1974 and 1981 was the dominant influence of a well organized and unified business lobby i examine business unity and political influence in the context of recent u s policy history tracing the legislative histories of the unsuccessful labor law reform and consumer protection agency bills of the 1 970s and the successful economic recovery tax act of 1981 a class based corporate power structure perspective is supported the historical conditionsfostering the political mobilization and intraclass cohesion of business in the 1970s and the theoretical implications of the breakdown of business unity after 1981 are also examined

producing change or bagging opportunity the effects of discrimination litigation on women in supermarket management despite women s advancement in the workplace over the past 40 years their representation in top level positions remains disproportionately low relative to that of men this raises the question of what factors drive greater gender equality in managerial ranks using national equal employment opportunity eeo 1 data for the supermarket industry this article proposes that high profile sex discrimination lawsuit filings provide the type of intense pressure that leads to increased female managerial representation results from fixed effects models demonstrate the significance of litigation in the short and long run especially for women employed by supermarkets located in the most progressive u s appellate court jurisdictions the findings also provide support for a normative effect on change based on regional variation in public orientation toward gender equality

energy research and r d indicators an lmdi decomposition analysis for the iea big 5 in energy research abstract the literature has always shown that there are two important factors in the improvement of a country s research output gross domestic product gdp and r d expenditures taking the discussion a step further and in an effort to provide policy recommendations on what is needed to boost research capacity this paper aims at decomposing the change in energy research papers of five countries australia canada germany uk and us into four factors gdp r d intensity ratio of total r d to gdp energy r d rate of return or productivity number of energy related papers per unit of energy r d expenditure and energy r d priority share of energy r d to total r d expenditure the findings show a general trend in the sign of the four effects on research for all five countries energy r d productivity energy r d priority and gdp are mostly found to be positive contributors while the r d intensity a negative one this pattern has exceptions that are more prominent during periods where economic growth is constrained for example during 2008 09 the results have policy implications not only for these five countries but also for developing countries low gdp that aim at contributing more to the energy related research output globally

the drivers of efficient knowledge transfer performance evidence from british universities using data from the united kingdom this study explores the institutional and environmental factors that influence universities efficiency in knowledge transfer while studies of universities knowledge transfer performance have so far focused on patent commercialisation and research contracting with industry it is increasingly acknowledged that universities engage in a broader range of knowledge transfer activities including consulting public engagement and provision of knowledge intensive services when these are taken into account less research intensive universities and those with a greater share of staff in the arts and humanities improve their relative efficiency more specialised older and larger institutions are more efficient performers while research intensity is no longer a strong predictor of efficiency

the effects of university rules on spinoff creation the case of academia in italy the economics literature provides rich evidence on the convergence between the institutional factors and individual level characteristics influencing the involvement of academia in knowledge transfer activities and spinoff creation however little is known about the effects of internal university regulations on academic entrepreneurship in the last ten years spinoff activity from academia in italy has been intensive and most academic institutions have policies related to the regulation of academic entrepreneurship practices known as regolamento spinoff this paper investigates the impact of the set of university rules governing the creation of spinoffs on institutional capability to generate new ventures based on panel data analysis using detailed university level data on academic spinoffs we identify three classes of institutionally defined rules that can motivate faculty members to establish a spinoff company these are general rules and procedures rules regulating monetary incentives rules related to the entrepreneurial risk we find that at least some rules pertaining to each of these three classes have some effect on spinoff creation in particular we find that monetary incentives play a significant role in promoting academic spinoff activity and that overly restrictive university rules regarding contract research have a negative effect on spinoff creation

the growth of executive pay this paper examines both empirically and theoretically the growth of us executive pay during the period 1993 2003 during this period pay has grown much beyond the increase that could be explained by changes in firm size performance and industry classification had the relationship of compensation to size performance and industry classification remained the same in 2003 as it was in 1993 mean compensation in 2003 would have been only about half of its actual size during the 1993 2003 period equity based compensation has increased considerably in both new economy and old economy firms but this growth has not been accompanied by a substitution effect i e a reduction in non equity compensation the aggregate compensation paid by public companies to their top five executives during the considered period added up to about 350 billion and the ratio of this aggregate top five compensation to the aggregate earnings of these firms increased from 5 per cent in 1993 5 to about 10 per cent in 2001 3 after presenting evidence about the growth of pay we discuss alternative explanations for it we examine how this growth could be explained under either the arm s length bargaining model of executive compensation or the managerial power model among other things we discuss the relevance of the parallel rise in market capitalizations and in the use of equity based compensation copyright 2005 oxford university press

anchoring inflation expectations in the face of oil shocks in the proximity of zlb a tale of two targeters this paper applies a n ardl framework to two longstanding inflation targeting policy regimes in order to assess the relation between oil prices dynamics and inflation expectations and the further consequences created by a proximal zlb situation the application is based on data from january 1994 to june 2018 for new zealand and the uk we focus on oil price shocks as a variable of interest and this was found to have an asymmetric effect on inflation expectations one further key finding is that the real effective exchange rate has significant impacts on inflation expectations and this is indicative of an exchange rate pass through to inflation via an inflation expectations channel in general we find that inflation exchange rate money supply output growth unemployment and fiscal deficit surplus have significant implications for inflation expectations inflation expectations are also influenced by their past behaviour indicating adaptive inflation expectations this study contributes to the debate on the inflation targeting at zlb

compensation benchmarking leapfrogs and the surge in executive pay scholars frequently argue whether the sharp rise in chief executive officer ceo pay in recent years is efficient or is a consequence of rent extraction because of the failure of corporate governance in individual firms this article argues that governance failure must be conceptualized at the market rather than the firm level because excessive pay increases for even relatively few ceos a year spread to other firms through the cognitively and rhetorically constructed compensation networks of peer groups which are used in the benchmarking process to negotiate the compensation of ceos counterfactual simulation based on standard and poor s execucomp data demonstrates that the effects of ceo leapfrogging potentially explain a considerable fraction of the overall upward movement of executive compensation since the early 1990s

collective labor rights and income inequality this article examines the relationship between income inequality and collective labor rights conceptualized as workers legal and practical ability to engage in collective activity although worker organization is central to explaining income inequality in industrialized democracies worldwide comparative studies have neglected the role of class based actors i argue that the repression of labor rights reduces the capacity of worker organizations to effectively challenge income inequality through market and political processes in capitalist societies labor rights however are unlikely to have uniform effects across regions this study uses unbalanced panel data for 100 developed and less developed countries from 1985 through 2002 random and fixed effects models find that strong labor rights are tightly linked to lower inequality across a large range of countries including in the global south interactions between regions and labor rights suggest that the broader context in which class based actors a

union strength neoliberalism and inequality contingent political analyses of u s income differences since 1950 do historically contingent political accounts help explain the growth in family income inequality in the united states we use time series regressions based on 60 years to detect such relationships

financialization and u s income inequality 1970 2008 focusing on u s nonfinance industries we examine the connection between financialization and rising income inequality we argue that the increasing reliance on earnings realized through financial channels decoupled the generation of surplus from production strengthening owners and elite workers negotiating power relative to other workers the result was an incremental exclusion of the general workforce from revenue generating and compensation setting processes using time series cross section data at the industry level we find that increasing dependence on financial income in the long run is associated with reducing labor s share of income increasing top executives share of compensation and increasing earnings dispersion among workers net of conventional explanations such as deunionization globalization technological change and capital investment the effects of financialization on all three dimensions of income inequality are substantial our counterfactual analysis suggests that financial

working class power capitalist class interests and class compromise this article proposes a general theoretical framework for understanding the concept of class compromise in terms of a reverse j model of the relationship between the associational power of workers and the interests of capitalists increases in working class power adversely affect capitalist class interests until such power crosses some intermediate threshold beyond which further increases in working class power are potentially beneficial to capitalists interests this article argues that the reverse j curve is itself the result of two distinct kinds of effects of workers power on capitalists interests one a negative effect in which workers power undermines the capacity of capitalists to unilaterally make various kinds of decisions and the second a positive effect in which workers power helps capitalists solve the various kinds of collective action problems they face

social class and income inequality in the united states ownership authority and personal income distribution from 1980 to 2010 this study outlines a theory of social class based on workplace ownership and authority relations and it investigates the link between social class and growth in personal income inequality since the 1980s inequality trends are governed by changes in between class income differences changes in the relative size of different classes and changes in within class income dispersion data from the general social survey are used to investigate each of these changes in turn and to evaluate their impact on growth in inequality at the population level results indicate that between class income differences grew by about 60 since the 1980s and that the relative size of different classes remained fairly stable a formal decomposition analysis indicates that changes in the relative size of different social classes had a small dampening effect and that growth in between class income differences had a large inflationary effect on trends in personal income inequality

do oil price shocks matter evidence for some european countries this paper analyzes the oil price macroeconomy relationship by means of analyzing the impact of oil prices on inflation and industrial production indexes for many european countries using quarterly data for the period 1960 1999 first we test for cointegration allowing for structural breaks among the variables second and in order to account for the possible non linear relationships we use different transformation of oil price data the main results suggest that oil prices have permanent effects on inflation and short run but asymmetric effects on production growth rates furthermore significant differences are found among the responses of the countries to these shocks

does labor s share drive inflation a number of researchers have recently argued that the new keynesian phillips curve matches the empirical behavior of inflation well when the labor income share is used as a driving variable but fits poorly when deterministically detrended output is used the theoretical motivation for these results rests on the idea that the output gap the deviation between actual and potential output is better captured by the labor income share in turn implying that central banks should raise interest rates in response to increases in this variable we show that the empirical evidence generally suggests that the labor share version of the new keynesian phillips curve is a very poor model of price inflation we conclude that there is little reason to view the labor income share as a good measure of the output gap or as an appropriate variable for incorporation in a monetary policy rule

are researchers deliberately bypassing the technology transfer office an analysis of tto awareness most universities committed to the commercialization of academic research have established technology transfer offices ttos nonetheless many researchers bypass these ttos and take their inventions directly to the marketplace while tto bypassing has typically been portrayed as deliberate and undesirable behavior we argue that it could be unintentional as many researchers may simply be unaware of the tto s existence taking an information processing perspective and using data on 3250 researchers in 24 european universities we examine researcher attributes associated with tto awareness our evidence confirms that only a minority of researchers are aware of the existence of a tto at their university tto awareness is greater among researchers who possess experience as entrepreneurs closed many research and consulting contracts with industry partners conduct research in medicine engineering or life sciences or occupy postdoctoral positions policy implications of these findings are discussed

the polarization of the u s labor market this paper analyzes a marked change in the evolution of the u s wage structure over the past fifteen years divergent trends in upper tail 90 50 and lower tail 50 10 wage inequality we document that wage inequality in the top half of distribution has displayed an unchecked and rather smooth secular rise for the last 25 years since 1980 wage inequality in the bottom half of the distribution also grew rapidly from 1979 to 1987 but it has ceased growing and for some measures actually narrowed since the late 1980s furthermore we find that occupational employment growth shifted from monotonically increasing in wages education in the 1980s to a pattern of more rapid growth in jobs at the top and bottom relative to the middles of the wage education distribution in the 1990s we characterize these patterns as the u201cpolarization u201d of the u s labor market with employment polarizing into high wage and low wage jobs at the expense of middle wage work we show how a model of computerization in which computers most strongly complement the non routine abstract cognitive tasks of high wage jobs directly substitute for the routine tasks found in many traditional middle wage jobs and may have little direct impact on non routine manual tasks in relatively low wage jobs can help explain the observed polarization of the u s labor market this abstract was borrowed from another version of this item

technological gap scale economy and china s industrial energy demand abstract the industrial sector in china is energy intensive and accounts for more than 60 of the nation s total energy consumption demand narrating the story behind the growth of china s industrial energy consumption could help us understand the past and prepare for the future this paper aims to investigate the factors affecting china s industrial energy consumption in the 21st century by using an extended production theoretical decomposition approach pda with considering the technological gap and scale of the economy effects the new proposed decomposition framework includes four new factors namely the energy technological gap the output technological gap energy scale efficiency and output scale efficiency the results show that in the 21st century the energy consumption of china s industry increased by more than one billion tons of standard coal the expansion of the industrial economy is a dominant driver of china s industrial energy consumption while potential energy intensity energy technology and output technology are the three largest energy saving factors in addition to the conventional factors the newly proposed factors also have important effects on china s industrial energy consumption specifically output scale efficiency is an energy saving factor while the energy technological gap output technological gap and energy scale efficiency are drivers of energy consumption this suggests that china s industry is at the stage of returns to scale that is beneficial to output performance but harmful to energy performance meanwhile the widening of the industrial technological gaps has negative impacts on china s industrial energy conservation the proposed decomposition approach can provide information that cannot be obtained from traditional approaches and it can also be applied to many other cases for investigating feasible paths of energy saving and emissions reduction

financialisation and capital accumulation in the non financial corporate sector a theoretical and empirical investigation on the us economy 1973 2003 recent research has explored the growing financialization process in the u s and other advanced economies the term is a catch all phrase used to denote important changes in the structure of non financial corporations balance sheets including the growth of income from financial subsidiaries and investment as well as growth in the transfer of earnings to financial markets in the forms of interest payments dividend payments and stock buybacks this paper seeks to empirically explore the relationship between financialization in the u s economy and real investment at the firm level using data from a sample of non financial corporations from 1973 to 2003 i find a negative relationship between real investment and financialization first increased financial investment and increased financial profit opportunities may have crowded out real investment by changing the incentives of firm managers and directing funds away from real investment second increased payments to the financial markets may have impeded real investment by decreasing available internal funds shortening the planning horizons of the firm management and increasing uncertainty these two channels can help explain the negative relationship i find between investment and financialization

the future natural gas consumption in china based on the lmdi stirpat plsr framework and scenario analysis abstract due to the growing pollution concerns in china there have been major efforts to design interrelated environmental protection policies as the policy of reducing coal consumption is implemented china s natural gas consumption is expected to commensurately rise such a trend may lead to the significant impacts on china s energy security and the global gas market this paper empirically investigates the relationship between the natural gas consumption and influencing factors in a comprehensive lmdi stirpat plsr framework it is found that fossil energy structure and non clean energy structure are the most important factors followed by urbanization per capita gdp industrialization and industrial energy intensity and then these factors from lmdi decomposition are innovatively divided into economic development and cleaning indicators when using scenario analysis to forecast china s natural gas consumption the prediction results suggest that economic development with high clean energy system would make a significant increase in gas consumption a commensurate increase in demand even the system of economic energy under scenario of low economic development and low clean as china would depend on gas imports to meet this demand there may be a serious supply shortage by 2020 therefore the government should consider the future energy security issue in making economic and environmental policies

an improved approach to estimate direct rebound effect by incorporating energy efficiency a revisit of china s industrial energy demand abstract the rebound effect or the response to energy efficiency improvement has drawn considerable attention from economists and policymakers however the magnitude remains quite controversial because of the differences in the definitions and methods being used originating from the definition of direct rebound effect we develop an improved approach incorporating energy efficiency the main advantages of the proposed approach are twofold first it enables us to estimate the demand elasticity of useful energy service with respect to energy service price the estimates are more consistent with the definition of rebound effect and are more effective second it decomposes direct rebound effect into substitution and output channels enabling us to further understand the microeconomic mechanisms applying this method we assess the direct energy rebound effect in china s industrial sectors we find that the direct rebound effect for the industry is 37 0 and the substitution and output channels contribute to 13 1 and 23 9 respectively substantial variations in the magnitudes and mechanisms occur by sector for heavy industry most energy rebound is induced by output expansion because of its sizeable cost decrease from efficiency improvements unlike heavy industry most energy rebound in light industry comes from substituting energy service for other inputs because firms in light industry are more flexible in adjusting production inputs our results provide evidences for the importance of energy efficiency measures and highlight the necessity of differentiated measures according to the sectoral characteristics

a more efficient estimate of the effects of macroeconomic activity on the distribution of income the effects of unemployment and inflation on quintile shares of family income in the united states are estimated by means of generalized least squares inflation is found to have a significant progressive impact on the distribution of income the results also lend support to earlier findings regarding the regressive effects of unemployment copyright 1994 by mit press

seeing like the fed culture cognition and framing in the failure to anticipate the financial crisis of 2008 one of the puzzles about the financial crisis of 2008 is why regulators particularly the federal open market committee fomc were so slow to recognize the impending collapse of the financial sys

university technology transfer how in efficient are french universities this paper presents the first assessment of the efficiency of the technology transfer operated by the french university system and its main determinants the analysis is based on a detailed and original database of 51 ttos categorized by type of university they belong to over the period 2003 2007 overall we find a low level of efficiency and both intra category and inter categories efficiency variation the analysis of determinants showed that french ttos efficiency depends extensively on the nature of the category with universities specialised in science and engineering being the most efficient ones on institutional and environmental characteristics we found that both the seniority of tto and size of the university have a positive effect in terms of environmental variables the intensity of rd however in terms of growth rate only the private r d activity seems to be the main driver lastly we find that the presence of a university related hospital is detrimental for the efficiency an extended discussion of the results within the existing literature is also offered

unions norms and the rise in u s wage inequality from 1973 to 2007 private sector union membership in the united states declined from 34 to 8 percent for men and from 16 to 6 percent for women during this period inequality in hourly wages increased by over 40 percent we report a decomposition relating rising inequality to the union wage distribution s shrinking weight we argue that unions helped institutionalize norms of equity reducing the dispersion of nonunion wages in highly unionized regions and industries accounting for unions effect on union and nonunion wages suggests that the decline of organized labor explains a fifth to a third of the growth in inequality an effect comparable to the growing stratification of wages by education

how to boost energy productivity in china s industrial sector an integrated decomposition framework based on multi dimensional factors abstract the industrial sector is a pillar for china s economy improving the energy productivity is of great significance to mitigate the discrepancy between energy use and energy supply as well as the economic development and environmental friendliness this paper extended the previous decomposition method by introducing six new components energy output oriented regional efficiency energy output oriented scale economy energy output oriented pure technical efficiency these new factors can uncover the impacts of regional balance development scale economy optimization and resource allocation efficiency change on energy productivity the main research results indicate that during the 2000 2016 period 1 industrial energy productivity yield progressively increased and the discrepancies of energy productivity in different regions were obvious eastern region represented the best energy productivity performance followed by the central and western regions 2 technological progress in both energy saving and production were two principal contributors to energy productivity growth overall the pure technical efficiency also promoted energy productivity suggesting that resource allocation efficiencies were performed well in both the energy market and the output market 3 by contrast both the energy and output oriented scale economy effect failed to promote energy productivity growth besides the energy oriented and output oriented regional efficiency had opposite impacts on energy productivity the former one had the inhibiting effects while the last one had the promoting effects finally several relevant suggestions for policymakers were provided

revenge of the managers labor cost cutting and the paradoxical resurgence of managerialism in the shareholder value era 1984 to 2001 institutional changes associated with the rise of shareholder value capitalism have had seemingly contradictory effects on managers and managerialism in the united states economy financial critiqu

organizational differentiation and earnings dispersion this article analyzes earnings distribution within organizations a formal model specifies mechanisms through which the hierarchical structure of organizations is likely to influence the extent of earnings dispersion the predictions derived from the model are confronted with data on the pay structure and formal organizational structure of 5 600 swedish manufacturing establishments the empirical analyses largely confirm the predictions derived from the model the extent of earnings dispersion within an organization is closely related to the vertical and horizontal differentiation of its formal structure this conclusion holds true even when the sex education and work experiences of those populating the organizational structures are controlled for

money supply class power and inflation monetarism reassessed recent sociological work shows that pro market neoliberal policies across advanced capitalist countries are due to distributional struggle between classes in the 1970s and 1980s the orthodox monetarist view alternatively sees neoliberal reform as a nonpolitical attempt to end the stagflation crisis of the 1970s from this perspective monetary and fiscal expansions brought high inflation and central bank discipline and government austerity is the solution but the recent trend of low inflation despite accelerating money growth and government spending contradicts this view analyses of time series cross section data for 23 oecd countries from 1960 to 2009 support the thesis that the rise and fall of inflation is more about distribution of power between labor and capital than about monetary and fiscal discipline inflation in the 1970s originated from a strong working class and hurt capital more than it did workers while neoliberal repression of workers power has kept inflation low from the 1980s onwa

why do some occupations pay more than others social closure and earnings inequality in the united states1 this article elaborates and evaluates the neo weberian notion of social closure to investigate positional inequality in the united states it argues that social and legal barriers around occupations raise the rewards of their members by restricting the labor supply enhancing diffuse demand channeling demand or signaling a particular quality of service hypotheses derived from the closure perspective are evaluated using new data that map five institutionalized closure devices licensing educational credentialing voluntary certification association representation and unionization onto 488 occupations results from multilevel models demonstrate that closure practices particularly those that generate tangible restrictions on the labor supply shape the contemporary structure of occupational earnings returns to these strategies vary across occupations but are not tightly linked to the complexity of the occupation s knowledge base if suitably elaborated closure theory thus offers a promising complemen

the impact of financialisation on the wage share a theoretical clarification and empirical test it is frequently asserted that financialisation has contributed to the decline in the wage share this paper provides a theoretical clarification and a systematic empirical investigation we identify four channels through which financialisation can affect the wage share 1 enhanced exit options of firms 2 rising price mark ups due to financial overhead costs for businesses 3 increased competition on capital markets and shareholder value orientation and 4 the role of household debt in increasing workers financial vulnerability and undermining their class consciousness the paper compiles a comprehensive set of empirical measures of financialisation and uses it to test these hypotheses with a panel regression of 14 oecd countries over the 1992 2014 period we find strong evidence for negative effects of financial liberalisation and financial payments of non financial corporations on the wage share that are in the same order of magnitude as the effects of globalisation

learning to love the government trade unions and late adoption of the minimum wage one counterintuitive variation in wage setting regulation is that countries with the highest labor standards and strongest labor movements are among the least likely to set a statutory minimum wage this the author argues is due largely to trade union opposition trade unions oppose the minimum wage when they face minimal low wage competition which is affected by the political institutions regulating industrial action collective agreements and employment as well as by the skill and wage levels of their members when political institutions effectively regulate low wage competition unions oppose the minimum wage when political institutions are less favorable toward unions there may be a cleavage between high and low wage unions in their minimum wage preferences the argument is illustrated with case studies of the uk germany and sweden the author demonstrates how the regulation of low wage competition affects unions minimum wage preferences by exploiting the following labor market institutional shocks the conservatives labor law reforms in the uk the hartz labor market reforms in germany and the european court of justice s laval ruling in sweden the importance of union preferences for minimum wage adoption is also shown by how trade union confederation preferences influenced the position of the labour party in the uk and the social democratic party in germany

economic globalization and the welfare state in affluent democracies 1975 1998 prior scholarship is sharply divided on how or if globalization influences welfare states globalization s effects may be positive causing expansion negative triggering crisis and reduction curvilinear contributing to convergence or insignificant we bring new evidence to bear on this crucial debate with a pooled time series analysis of two measures of the welfare state and 16 indicators of economic globalization for 17 affluent democracies from 1975 to 1998 the analysis suggests that 1 state of the art welfare state models warrant revision in the globalization era 2 most indicators of economic globalization do not have significant effects 3 the few significant globalization effects are in different directions and often inconsistent with extant theories 4 the globalization effects are far smaller than the effects of domestic political and economic factors and 5 these effects are not systematically different for liberal vs nonliberal welfare state regimes european vs non european countries or with four alternative dependent variables increased globalization and a modest convergence of the welfare state have occurred but globalization does not unambiguously cause welfare state expansion crisis and reduction or convergence bisherige befunde der sozialwissenschaftlichen forschung zum kausalen verhaltnis von globalisierung und wohlfahrtsstaat sind nicht eindeutig danach kann globalisierung positive effekte haben und zu einem ausbau an wohlfahrtsstaatlichkeit fuhren eine krise des wohlfahrtsstaates oder leistungsreduktionen herbeifuhren kurvilineare wirkungen aufweisen und zu konvergenz beitragen als auch vollkommen insignifikant sein unsere gepoolte zeitreihenanalyse von wohlfahrtsstaatlichkeit und globalisierung in 17 reichen demokratien 1975 1998 hat folgende befunde zu tage gefordert 1 im zeitalter der globalisierung erscheinen bestehende wohlfahrtsstaatsmodelle revisionsbedurftig 2 die mehrzahl der okonomischen globalisierungsindikatoren weist keine signifikanten effekte auf 3 die wenigen signifikanten effekte zeigen in unterschiedliche richtungen und stimmen haufig nicht mit bestehenden theoretischen annahmen uberein 4 die globalisierungseffekte sind deutlich kleiner als die effekte binnenpolitischer variablen und okonomischer faktoren 5 diese effekte unterscheiden sich in liberalen und nicht liberalen wohlfahrtsregimen bzw europaischen und nicht europaischen landern nicht systematisch von einander im analysezeitraum konnen wir sowohl einen anstieg der verschiedenen globalisierungsindikatoren sowie eine moderate konvergenz der verschiedenen wohlfahrtsstaaten konstatieren jedoch kann der prozess der globalisierung nicht eindeutig als kausale ursache fur die unterschiedlichen entwicklungsrichtungen in den verschiedenen wohlfahrtsstaaten identifiziert werden

determinants of labour s income share in the era of financialisation numerous studies have analysed the decline in the labour share of income but only few have linked it to the increase in financialisation the process of financialisation can roughly be described as an increasing importance of the financial sector that had an impact on the distribution between wages and profits on the one hand and retained earnings and financial income in the form of dividends and interests on the other hand this article seeks to explore the relationship between financialisation and labour s share of income using a time series cross sectional dataset of 13 countries over the time period from 1986 until 2007 the results suggest that there is indeed a relationship between increasing dividend and interest payments of non financial corporations and the decline of the share of wages in national income other factors that can account for the decline relate to globalisation and a decrease in the bargaining power of labour

book reviewinequality poverty and history jeffrey g williamson basil blackwell cambridge ma 1991 isbn 1 55786 118 8 pp vii 151 19 50

taking time seriously dramatic world change has stimulated interest in research questions about the dynamics of politics we have seen increases in the number of time series data sets and the length of typical time series but three shortcomings are prevalent in published time series analysis first analysts often estimate models without testing restrictions implied by their specification second researchers link the theoretical concept of equilibrium with cointegration and error correction models third analysts often do a poor job of interpreting results the consequences include weak connections between theory and tests biased estimates and incorrect inferences we outline techniques for estimating linear dynamic regressions with stationary data and weakly exogenous regressors we recommend analysts 1 start with general dynamic models and test restrictions before adopting a particular specification and 2 use the wide array of information available from dynamic specifications we illustrate this strategy with data on congressional approval and tax rates across oecd countries

occupations and the structure of wage inequality in the united states 1980s to 2000s occupations are central to the stratification systems of industrial countries but they have played little role in empirical attempts to explain the well documented increase in wage inequality that occurred in the united states in the 1980s and 1990s we address this deficiency by assessing occupation level effects on wage inequality using data from the current population survey for 1983 through 2008 we model the mean and variance of wages for each occupation controlling for education and demographic factors at the individual level to test three competing explanations for the increase in wage inequality 1 the growth of between occupation polarization 2 changes in education and labor force composition and 3 residual inequality unaccounted for by occupations and demographic characteristics after correcting for a problem with imputed data that biased kim and sakamoto s 2008 results we find that between occupation changes explain 66 percent of the increase in wage inequality from 1992 to 2008

technology transfer offices and commercialization of university intellectual property performance and policy implications the recent increase in the rate of commercialization of intellectual property at us and european universities has important performance and policy implications we review recent studies of the antecedents and consequences of these activities and then draw some lessons learned for policy makers a key conclusion is that universities and regions must formulate and implement coherent and feasible technology transfer commercialization strategies

european inflation dynamics abstract we provide evidence on the fit of the new phillips curve npc for the euro area over the period 1970 1998 and use it as a tool to compare the characteristics of european inflation dynamics with those observed in the u s we also analyze the factors underlying inflation inertia by examining the cyclical behavior of marginal costs as well as that of its two main components namely labor productivity and real wages some of the findings can be summarized as follows a the npc fits euro area data very well possibly better than u s data b the degree of price stickiness implied by the estimates is substantial but in line with survey evidence and u s estimates c inflation dynamics in the euro area appear to have a stronger forward looking component i e less inertia than in the u s d labor market frictions as manifested in the behavior of the wage markup appear to have played a key role in shaping the behavior of marginal costs and consequently inflation in europe

does financialization retard growth time series and cross sectional evidence abstractalthough financial development is essential for economic development excessive financialization of the economy is believed to exert a negative effect on output growth in this article empirical evidence is presented on the relation between economic growth and financialization as measured by the ratio of credit to gdp and the ratio of publicly traded shares to gdp the empirical results are based on annual time series data for six country groups as well as cross sectional data covering a large number of countries the model is initially specified with unobserved components and estimated in a time varying parametric framework to account for missing variables thereafter the issue of linear versus quadratic specifications is examined the results are robust with respect to model specification estimation method data type and variable definition showing in general that financialization has a negative impact on growth some evidence is also presented to support the notion of the financial kuznets

the economics of immigration this literature review concerns the impact of immigration on the economy of the host country focusing on the experience of the united states the emphasis is on the period from the 1970s to the 1990s the author shows that research earlier in this period generally concluded that the economic effects of immigration were positive but that more recent research on later migrations have generally concluded that immigration may be having an adverse effect on the earnings of native unskilled workers and be placing an increased burden on welfare programs the importance of such economic analysis for the formulation of appropriate migration policies is stressed

differences and changes in wage structures preface introduction and summary richard b freeman lawrence f katz 1 a comparison of changes in the structure of wages in four oecd countries lawrence f katz gary w loveman david g blanchflower 2 international differences in executive and managerial compensation john m abowd michael l bognanno 3 the gender earnings gap some international evidence francine d blau lawrence m kahn 4 international wage curves david g blanchflower andrew j oswald 5 the changing structure of male earnings in britain 1974 1988 john schmitt 6 real wages employment and wage dispersion in u s and australian labor markets robert g gregory francis vella 7 labor markets and economic growth lessons from korea s industrialization 1970 1990 dae il kim robert h topel 8 wage differentials in italy market forces institutions and inflation christopher l erickson andrea c ichino 9 the swedish wage structure the rise and fall of solidarity wage policy per anders edin bertil holmlund 10 getting together and breaking apart the decline of centralized collective bargaining richard b freeman robert s gibbons 11 earnings inequality in germany katharine g abraham susan n houseman 12 a comparative analysis of east and west german labor markets before and after unification alan b krueger jorn steffen pischke contributors author index subject index

why are there large differences in performances when the same carbon emission reductions are achieved in different countries great interest has been in unilateral climate policies given present difficulty of establishing stable global coordinated agreements in this paper we investigate underlining factors explaining large differences in performances when the same carbon emission reductions are achieved in different abating countries to this end we develop a new multi country general equilibrium model incorporating six countries or world regions two goods six production inputs capital mobility energy mobility and international trade meanwhile we adopt two performance indicators with carbon leakage representing environmental efficiency and carbon emission abatement costs revealing cost effectiveness our findings are as follows firstly there are large differences in performances among these unilateral climate policies as evidenced by large differences in leakage rates and carbon emission abatement costs secondly the new global climate treaties to replace the kyoto protocol should be able to induce more carbon emission reductions in countries with low carbon emission reduction costs since such setting contributes to global cost savings finally developed countries have high carbon emission abatement costs compared with large developing countries china and india in this paper implying that there should be trade off mechanisms between efficiency and equity regarding how to allocate carbon emission reductions among countries

the impact of heterogeneity of discount factors and asset returns on inequality abstractwe investigate the effect of differential access to financial markets discount factor and wealth endowment on poverty and inequality we construct a model of educational and savings choice with heterogeneous agents motivated by empirical evidence in this economy the return on savings is a non decreasing function of the amount saved as expected more patient households tend to become wealthier and more educated the heterogeneity on portfolio returns is shown to be key to our main result the model closely fits the data on income and wealth inequalities being able to explain the existing brazil s inequality patterns the model was also calibrated to the us with similar fit we then evaluate two types of public policies based on cash transfer schemes ctss that aim to reduce poverty and inequality we find that the cts version in which receiving the benefit is conditional on educating the household s youngster outperforms its unconditional version in almost all dimensions analysed

nonmarital first births marriage and income inequality many aggregate level studies suggest a relationship between economic inequality and socio demographic outcomes such as family formation health and mortality but individual level evidence is lacking nor is there satisfactory evidence on the mechanisms by which inequality may have an effect we study the determinants of transitions to a nonmarital first birth as a single parent or as a cohabiting parent compared to transitions to marriage prior to a first birth among unmarried childless young adults in the national longitudinal survey of youth 1997 cohort from 1997 to 2011 we include measures of county group level household income inequality and of the availability of jobs typically held by high school graduates and which pay above poverty wages we find that greater income inequality is associated with a reduced likelihood of transitioning to marriage prior to a first birth for both women and men the association between levels of inequality and transitions to marriage can be partially accounted for by the availability of jobs of the type we measured some models also suggest that greater income inequality is associated with a reduced likelihood of transitioning to a first birth while cohabiting

macroeconomic structure and labor s share of income united states 1950 to 1980 we test several hypotheses derived fr om marxist crisis theories regarding the impact of macroeconomic performance on the distribution of income between labor and capital in the united states during the period 1950 to 1980 using annual data on compensation profits and employment we estimate the short term effects of cyclical variations in unemployment inflation growth and capacity utilization on labor s income share with an additive decomposition of labor s income share we then estimate the extent to which the observed effects can be attributed to changes in compensation output and employment we find little support for the hypothesis that tight labor markets increase labor s income share by increasing the bargaining position of labor the hypothesis that labor compensation lags behind profits over the business cycle is supported our results therefore favor the realization failure rather than the reserve army theory of cyclical crisis

financialisation and the slowdown of accumulation over the past decades financial investment of non financial businesses has been rising and accumulation of capital goods has been declining the first part of the paper offers a novel theory to explain this phenomenon financialization the shareholder revolution and the development of a market for corporate control have shifted power to shareholders and thus changed management priorities leading to a reduction in the desired growth rate in the second part the link between accumulation and financialization is tested econometrically by means of a time series analysis of aggregate business investment for usa uk france and germany extensive test of robustness are performed for the first three countries evidence that confirms the negative effect of financialization on accumulation is found author s abstract

factor substitution and energy productivity fluctuation in china a parametric decomposition analysis abstract technical research on energy productivity can support government officials as they evaluate practical energy policies for the future this study proposed a parametric method to decompose china s energy productivity rate of change into six factors based on a theoretical stochastic frontier analysis the method was applied to conduct an empirical study using inter provincial panel data in china from 1995 to 2012 the results highlighted three key points first the general rate of change in energy productivity was mainly influenced by a steady positive rate of change in technical progress combined with a steady negative rate of change in technical efficiency the core factors causing fluctuations in energy productivity included a positive rate of change in the substitution of capital and energy and a negative rate of change in the substitution of labor and energy second from a geographic perspective provinces with a high rate of change in technical progress experienced a weaker deterioration in technical efficiency however the rate of change in technical efficiency tends to decline as the rate of change in technical progress increases third there is a similar changing trend between the substitution of capital and energy and the substitution of labor and energy

labour share decline financialisation and structural change the purpose of this article is to explain the determinants behind the decline of labour share in the last three to four decades in oecd countries in our view this decline was determined by financialisation and was deepened by the structural changes that occurred almost simultaneously in those economies financialisation or finance dominated capitalism from the 1980s onwards was a key element in the strategic offensive of the advanced countries dominant classes to appropriate higher shares of national income and to restore their control over the political process a control that had been threatened by a generalised advancement of the labour movement in the 1970s the development of a finance dominated capitalism was helped by the process of globalisation which affected not only oecd countries but also many others a new though unstable macroeconomic model emerged which we will call financial capitalism in financial capitalism trade unions lost power vis a vis capital labour flexibility increased enormously and a structural change from manufacturing to services was accelerated in rich countries this resulted in negative consequences for labour share and income inequality after having provided a theoretical discussion of the determinants of the compression of the wage share making reference to the relevant literature we submit our hypotheses to empirical scrutiny performing a panel data analysis on 28 oecd countries the results of the estimations provide support to the theoretical argument

environmentally sensitive productivity analysis of the canadian pulp and paper industry 1959 1994 an input distance function approach abstract this study employs a parametric input distance function that incorporates both desirable and undesirable outputs to provide a more complete representation of the production technology from which environmentally sensitive productivity and efficiency measures can be generated this framework also generates pollution abatement cost estimates that are useful for policy making an input based malmquist index of productivity growth that appropriately credits the producer not only for increases in marketable or desirable outputs but also for the production of improved environmental quality through pollution abatement activities is derived from the input distance function the method was applied to time series data from the canadian pulp and paper industry our shadow price estimates indicate that the marginal cost to producers of pollution control has been rising the main conclusion of this study is that productivity improvement from the social viewpoint has been stronger than conventional measures would suggest

growing apart the changing firm size wage premium and its inequality consequences wage inequality in the united states has risen dramatically over the past few decades prompting scholars to develop a number of theoretical accounts for the upward trend this study argues that large firms have been a prominent labor market institution that mitigates inequality by compensating their low and middle wage employees with a greater premium than their higher wage counterparts large u s firms reduced overall wage dispersion yet broader changes to employment relations associated with the demise of internal labor markets and the emergence of alternative employment arrangements have undermined large firms role as an equalizing institution using data from the current population survey and the survey of income and program participation we find that in 1989 although all private sector workers benefited from a firm size wage premium the premium was significantly higher for individuals at the lower end and middle of the wage distribution compared to those at the higher end between 1989 and

the rise of finance and firm employment dynamics this article sheds light on the ongoing employment stagnation in the united states by investigating the links between the rise of finance and firm employment dynamics during the 1982 2005 period i argue that the rise of finance marginalized the role of labor in revenue generating and sharing processes which led to employment stagnation among the largest nonfinancial firms in the united states evidence suggests that increasing investment in financial assets depresses the workforce size the growing dependence on debt reprioritizes the order of distribution heightening the need for workforce reduction the increasing rewards for shareholders generate a downsize and distribute spiral in which labor expense becomes a primary target of cost cutting strategies further analysis indicates that production and service workers are more vulnerable to shifts associated with the rise of finance than managers and professionals

good times bad times postwar labor s share of national income in capitalist democracies this article returns to a classic question of political economy the zero sum conflict between capital and labor over the division of the national income pie a detailed description of labor s shar

unproductive accumulation in the usa a new analytical framework in this paper i offer an innovative analysis of unproductive accumulation in the united states economy from 1947 to 2011 i develop a new theoretical and empirical framework to analyze the accumulation of capital in its productive and unproductive forms i also develop a methodology to compute marxist categories predicated on the idea that the production of knowledge and information is an unproductive activity that relies on the creation of knowledge rents in particular i provide new empirical estimates to uncover the shifting balance between productive and unproductive forms of accumulation the accumulation pattern observed during the 1947 1979 phase that prioritized productive accumulation gave way after the 1980s to a contrasting pattern prioritizing unproductive accumulation unproductive activity has been growing at a fast pace in terms of incomes fixed assets and employment among all forms of unproductive activity my approach places special attention on how the production of knowledge and information has constituted a rising share of total unproductive income and capital stock additionally productive stagnation and rapid unproductive accumulation have been related to greater exploitation of productive workers and to widening income inequality