migration and job search in a dualistic economy abstract by introducing optimal search behavior a la stigler into a todarian dual sector urban economy the probability of urban formal sector entry as a function of the rural urban migrants optimal search intensity is derived and its implications studied

remittances and inequality in this paper the authors propose a framework and develop techniques for analyzing the impact of migrant remittances on the distribution of rural income by size and subsequently its impact on rural welfare household data are used to assign numerical coefficients to the impact of net remittances from both internal and international migrants on income inequality in 2 mexican villages the impact of migrant remittances on the distribution of rural income by size depends critically on the degree to which migration opportunities become diffused through the village population on the returns to human capital embodied in remittances and on the distribution of potentially remittance enhancing skills and education across village households our empirical findings demonstrate that in a village where many households contain internal migrants but few have experience migrating to the u s remittances from mexico to us migrants have an unequalizing impact on village incomes while remittances from internal migrants have a favorable effect on the village income distribution by contrast in a village with a long historyh of sending migrants to the us and hence a more ready access to us labor markets us to mexico remittances have an equalizing impact on incomes remittances from internal migrants in this village however embody a large human capital component and are highly correlated with household income hence internal migrant remittances account for a comparatively large share of inequalities in the 2nd village the overall effect of remittances on income inequality is favorable in both villages migration type migration stage and interaction terms all appear to play a role in this context the effects of small changes in remittances upon income inequality and rural welfare in the 2 villages are explored and some implications for migration and rural development policy are considered authors modified

new roles for marriage in urban africa kinship networks and the labor market in kenya abstract this paper explores new roles that traditionally rural kinship networks organized around the marriage institution might play in improving labor market outcomes in urban africa using new data from kisumu kenya and controlling for selection into marriage we find that marriage significantly increases employment levels and incomes in our sample of migrants at the same time marriage increases the remittances that migrants send to the extended family consistent with the view that the benefits of the network come with additional social obligations these obligations appear to be borne disproportionately by high ability individuals who consequently defer marriage the negative selection into marriage that we uncover has consequences for the future viability of the urban networks with implications for long term growth and distribution in this economy

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

research on rural to urban migration in ldcs the confusion frontier and why we should pause to rethink afresh abstract over 12 years of intensive research in the field of rural to urban migration have left the field beset with loss of direction and some serious doubts as to 1 whether research has really provided practitioners with more specific means of intervention 2 proper understanding of such intervention its justification and results 3 the areas in which the marginal benefit of extra research amounts to zero 4 those areas in which some consensus has emerged 5 which problem areas and specific issues merit intensive migration research in the coming years and 6 whether or not the academic profession has based its migration research effort in the past decade on an inappropriate set of presuppositions or even worse on invalid postulates a few examples of confusion and or fallacies that render this list more concrete are presented in this paper these are drawn from the areas of migration and fertility migration and education migration and the distribution of income by size migration and urban unemployment migration and the politics of economics migration and policy measures this paper then makes a plea for a major re evaluation which could and should provide a turning point in academic work and institutional thought the emphasis is on reformulation of the policy related presumptions on which research has been based for the past dozen years rather than trying to reach a better understanding of the decision making process generating rural to urban migration and its sectoral and overall social implications so as to devise more effective measures to contain reverse it the starting point should be an effort to effectively manipulate the phenomenon so as to turn it into a vehicle of national development and personal betterment

national wage trends and migration in a chinese village economy a micro level modeling approach based on a composite utility function china s economy is experiencing a regime shift away from a fully elastic supply of labor from a large pool of rural surplus labor and toward a situation of increasing labor scarcity and rising wage rates moreover faster wage increases in the regions of origin of many rural urban migrants are likely to affect the dynamics of inter regional migration these wage trends have implications at the local level in particular in a setting in which migration connects rural communities to the national labor market and in which migration is of high importance for the livelihoods of rural households taking a village perspective this article develops a village computable general equilibrium model to study local impacts of current wage trends in china as a central piece of the model the role of access to migration for household livelihoods is recognized access to migration is linked to household demographics and included in the model through a composite utility function that captures household preferences and disutilities associated with alternative off farm activities simulation results illustrate how households utility considerations affect migration responses to national wage changes statements about possible impacts on village level labor supply land use and agricultural production are made when migration wages and local off farm wages are simulated to increase an overall increase in household and village migration and a higher supply of labor to local off farm labor markets is accompanied by a contraction of farm production although land is reallocated between households with different migration responses total agricultural output declines

migration remittances and inequality a sensitivity analysis using the extended gini index abstract this paper uses the extended gini inequality index to examine the sensitivity of measurements of impacts of migrant remittances on the distribution of household income by size to different value judgements when measuring inequality the results illustrate the robustness of earlier findings that the impacts of migration on village income distributions differ for different types of migration and for different periods in a village s migration history the magnitude of these impacts however appears to be quite sensitive to the weights attached to incomes at different points in the village income distribution for example in a village with considerable mexico to u s migration experience remittances from mexico to u s migrants have a favorable effect on the village income distribution however the extended gini analysis shows that this favorable impact decreases as more weight is attached to incomes in the poorest households this finding is consistent with the view that barriers to high paying mexico to u s migration work exist for households at the bottom of the village income distribution

payoffs from panels in low income countries economic development and economic mobility economic development is a dynamic process with a time scale of more than a few years the scarcity of household survey data covering long periods of time has meant that most empirical evidence on hypotheses about growth and development has come from cross country aggregate time series data one important limitation of such data is that they cannot provide information on economic mobility thus little is known about which households and individuals are the beneficiaries of economic growth or about the degree of persistence of poverty over sustained time periods or generations as development proceeds disaggregated within country panels covering different time dimensions have been used to shed light on a number of important development topics that go beyond what can be learned from the cross country database carefully planned social experiments or intensive areaspecific fieldwork including the differentiated effects on households of macroeconomic shocks paul glewwe and gillette hall 1998 elizabeth frankenberg et al 2003 the effects of longer term processes such as population growth and technological change on forestation andrew d foster and rosenzweig 2003 and the consequences of institutional change such as local democratization foster and rosenzweig 2002b however household level panel surveys that cover time periods of a decade or more and thus have the potential for studying economic mobility are not only scarce but have design limitations that may bar unbiased inferences about economic mobility for example the indian village level studies of the international crop research institute for the semi arid tropics icrisat which followed households in six villages starting in 1975 for ten years thomas walker and james ryan 1984 dropped the 14 percent of households that divided similarly the 1982 rural economic development survey reds of indian households prem s vashishtha 1989 excluded the one third of 1971 baseline households that had split by 1982 indeed the design of the world bank living standards measurement surveys lsms includes in the panel component of each survey only those members of sampled residences who do not leave glewwe and m grosh 1999 although there is evidence suggesting that panel survey rules that condition on residence provide nonrandom subsamples of the baseline households duncan thomas et al 2001 foster and rosenzweig 2002a little is known about how these selection rules affect inferences about economic mobility or poverty persistence in this article i use data from a new 18 year panel survey from bangladesh to assess whether and how residence based sampling rules affect estimates of economic mobility in the presence of nonrandom household division the results suggest that the biases are substantial

the building industry and urbanization in third world countries a philippine case study a model of the building industrys role in urbanization in the third world countries can be discerned from the discussions of the industry which have appeared in the literature this model has two components first the structure of the industry is assumed to be dualistic second because of the fluctuations in the number of jobs created by building activity employment within the industry is thought to be transitory this paper based on a field study of the building industry in the greater manila area gma the philippines seeks to show that such a model does not necessarily hold for all third world countries and is certainly at variance with the experience of the philippines not only has the industry structure developed beyond the crude dualistic stage but also a large proportion of the work force especially skilled laborers shows a definite commitment to employment in the industry and has been working on building sites for a considerable period it will be shown that the manner in which these laborers cope with uncertain employment and income has important ramifications for the efficiency of the industry for both the urban and rural economies and of course for the laborers themselves excerpt

neighborhood effects and social behavior the case of irrigated and rainfed farmers in bohol the philippines artifactual field experiments spatial econometrics and household surveys are combined in a single study to investigate the neighborhood effects of social behaviors the dictator and public goods games are conducted among rice farmers in irrigated and non irrigated areas in the philippines we find the neighborhood effects but the magnitude and statistical significance of endogenous social effects vary with the irrigation availability type of social behavior and type of neighborhood altruistic and cooperative behaviors are significantly influenced by the behaviors of neighbors only in the irrigated area where social ties are strengthened through collective irrigation management through this effect irrigated farmers social behaviors become similar to those of one another neighborhood effects for cooperative behavior are stronger among farm plot neighbors than among residential neighbors which may reflect their interactions in irrigation management although non dynamic these findings are consistent with the theory of social norm evolution through common pool resource management

household strategies and rural livelihood diversification this article reviews the recent literature on diversification as a livelihood strategy of rural households in developing countries with particular reference to sub saharan africa livelihood diversification is defined as the process by which rural families construct a diverse portfolio of activities and social support capabilities in order to survive and to improve their standards of living the determinants and effects of diversification in the areas of poverty income distribution farm output and gender are examined some policy inferences are summarised the conclusion is reached that removal of constraints to and expansion of opportunities for diversification are desirable policy objectives because they give individuals and households more capabilities to improve livelihood security and to raise living standards

the political economy of coal subsidies in europe abstract both the mining and the burning of coal is polluting so we might expect to observe taxes on coal production and consumption yet several countries of western europe subsidize coal production and most east european countries subsidize coal consumption the first part of this paper shows that those subsidies which are emulated by other rich and poor countries respectively have become enormous neoclassical political economy is used to examine why governments adopt such inappropriate policies when they are so wasteful of resources and damaging to the environment several new and offsetting political forces have been at work in western europe in recent years though causing some countries to dismantle their coal producer subsidies the paper concludes that these pressures for reform will continue to operate in the few remaining protectionist countries if coupled with more commercial diplomatic pressure from coal exporting countries they could be sufficient to see the end of such protection by early next century

shadow households and competing auspices migration behavior in the philippines abstract in this paper two concepts related to spatial mobility at the household level are introduced shadow households and competing auspices the shadow household consists of all individuals who are not presently living in a household but whose principal obligations and commitments are to that household according to the competing auspices concept intentions to move from point x to point y are ceteris paribus positively related to the presence of relatives or close friends at point y and negatively related to such links at any other point z the utility of these concepts is demostrated with data from a sample survey of over 1 700 individuals in ilocos norte the philippines

have north south growth linkages changed abstract this paper provides econometric evidence suggesting that the traditional tradebased business cycle linkages between the north and the south have changed many countries in the south particularly in asia appear to have become more resilient to cyclical movements in the north and play a more significant role in sustaining global activity a number of factors may have contributed to these changes improved domestic policies and more open trade and exchange regimes closer financial linkages with the north and a substantial increase in capital flows a marked rise in intraregional trade and greater diversification of the exports of the south

the shadow value of migrant remittances income and inequality in a household farm economy this article offers econometric evidence that income remittances sent home by family migrants stimulate household farm incomes indirectly by relieving credit and risk constraints on household farm production a high but unequally distributed shadow value of migrant remittances appears to reinforce an equalising direct effect of remittances on the income distribution across a sample of household farms in rural mexico

true measures of gdp and convergence widely used purchasing power parity comparisons of per capita gdp are not true quantity indexes and are subject to systematic substitution bins this bias may distort measurement of convergence and divergence extending varian s nonparametric construction of a true index gives the set of true indexes including the new ideal afriat index these indexes are utility consistent and independent of arbitrary reference price vectors we establish bounds on the dispersion of true multilateral indexes hence bounds on convergence international price indexes understate both true gdp dispersion and where prices are converging over time the rate of true quantity convergence

trade as the engine of growth in developing countries revisited economic growth in developed countries since the mid 1970s the only way to keep the engine of ldc growth beating at a satisfactory rate so the argument goes is to turn to an alternative source of fuel this lewis argues lies in trade among the developing countries which he asserts can take up the slack left by mdcs more developed countries as mdcs slow down 1980 p 560 pessimism about demand for ldc exports in developed countries markets is a recurrent theme in the development literature also familiar is the approach taken by lewis to dismiss past successes of ldcs in world trade by declaring the alleged engine of past growth to be no longer operating satisfactorily the intellectual foundations of the import substitution strategy laid in the 1950s by prebisch myrdal and most importantly nurkse rested on similar grounds arguing that the demand for periphery countries exports in the 20th century is far weaker than it was in the 19th century trade was dismissed as an engine of growth a function nurkse alleged it had served in the 19th century the solution prescribed in the 1950s was to look inward in effect to scrap the trade engine altogether lewis remedy coming two decades later when most importsubstitution possibilities in many ldcs have been all but exhausted retains the trade engine but seeks an alternative source of fuel to drive it the classic critique by irving kravis 1970 of nurkse s thesis of trade as a faltering engine of growth showed that export expansion did not serve in the nineteenth century to differentiate successful from unsuccessful countries p 850 this followed from two findings first that successful 19th century countries showed few signs of export dominated growth second that unsuccessful periphery countries enjoyed export expansion in the second half of the 19th century of the same order of magnitude as the temperate regions of recent settlement this led kravis to conclude that a more warranted metaphor

network effects and the dynamics of migration and inequality theory and evidence from mexico international migration is costly and initially only the middle class of the wealth distribution may have both the means and incentives to migrate which can increase inequality in the sending community however the migration networks formed lower the costs for future migrants which can in turn lower inequality this paper shows both theoretically and empirically that wealth has a nonlinear effect on migration and then examines the empirical evidence for an inverse u shaped relationship between emigration and inequality in rural sending communities in mexico after instrumenting we find that the overall impact of migration is to reduce inequality across communities with relatively high levels of past migration we also find some suggestive evidence for an inverse u shaped relationship among communities with a wider range of migration experiences

coal policies and trade barriers abstract the purpose of this paper is to treat in some depth recent work performed by the iea secretariat in analysing barriers to coal trade in member countries the concept of the producer subsidy equivalent pse as a measure of financial transfers to the coal industry is described along with its advantages and limitations as illustration summary results for the years 1982 1988 are given the paper concludes with a discussion of the arguments for and against maintaining support for domestic coal production

deregulation of the japanese oil products market japan has maintained tight control over its oil market with the result that japanese consumers have faced higher net of tax oil product prices than other organization for economic co operation and development oecd consumers in april 1996 the market was deregulated we explore through simulation the welfare effect of this deregulation taking into account the pollution costs arising from increased emissions

on the optimal choice of capital intensity in ldcs with migration abstract sen s classic work on the choice of capital intensity of investment is generalized in the light of new theoretical developments and empirical findings concerning rural to urban migration in ldcs this is done by explicitly incorporating a migration function into the basic choice model revised conditions for maximization of surplus are derived and compared with sen s original condition some justification for the particular migration function used in the presence of risk aversion is suggested

remittances poverty inequality and welfare evidence from the central plateau of burkina faso abstract this paper applies gini and concentration coefficient decomposition as well as the foster greer thorbecke poverty index and the stark yitzhaki welfare index to new data from four villages in burkina faso to compare the marginal effects of remittances from intercontinental and intra african migration on inequality poverty and social welfare evidence is found that intra african remittances reduce inequality while intercontinental remittances have the opposite effect also it is found that although remittances from intercontinental migration are associated with much lower incidence depth and severity of poverty the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor

ethnicity and credit in african manufacturing abstract this paper investigates whether market interaction can by itself perpetuate the lack of ethnic diversity that is observed in the business communities of many developing countries using case study data on manufacturing firms in kenya and zimbabwe we find no evidence that blacks or women are disadvantaged in the attribution of bank credit once we control for firm size and other observable characteristics in contrast an ethnic and gender bias is noticeable in the attribution of supplier credit although we cannot rule out the presence of discrimination the bulk of the evidence indicates that network effects play an important role in explaining this bias

virtual incubation in industrial clusters a case study in pakistan abstract in industrial clusters transaction costs are kept low and free riding is discouraged by a community mechanism developed through dense and repeated interactions among entrepreneurs in such environments new entrants without established reputations and connections are put at a distinct disadvantage this negative effect on new entry must be neutralised for an industrial cluster to expand using enterprise level data from pakistan this study finds that personal networks are indeed important for successful enterprise operation which works to the advantage of incumbents but that subcontracting plays the role of virtual incubation in nurturing new enterprises reinforcing the cluster s dynamism

exporting recessions international links and the business cycle abstract empirical evidence of decoupling typically focuses on declining business cycle correlations at low frequencies at higher frequencies business cycles strongly co move during recessions but are largely independent during non recessionary periods

urbanization and underdevelopment a global study of modernization urban bias and economic dependency the causes and effects of 3rd world urbanization have been addressed in theories of modernization urban bias and economic dependency but no single cross national study has tested the arguments advanced by all 3 theories this paper uses panel regression analysis to assess the validity of the 3 perspectives in 61 underdeveloped countries between 1960 and 1980 the modernization theory asserts that industrial employment attracts people to urban areas where they work in modern sector employment that facilitates national economic expansion the urban bias theory posits that the disparity in welfare between country and city increases rural to urban migration and thereby expands both urbanization and service informal employment dependency and world system arguments assert that foreign investment promotes both urbanization and service informal labor with foreign investment in agriculture pushing farmers townward and foreign investment in urban manufacturing pulling them there results suggest that underdeveloped nations are experiencing a gradual transition from an agrarian to a service and informal economy a transformation that impedes economic expansion unfavorable agricultural conditions alone will not push rural citizens to urban areas 2 theories help explain the relationship between relatives urbanization and economic growth if future studies of urbanization and underdevelopment are going to be useful then they must transcend current theoretical and ideological particularism

debt finance production and trade in a north south model the surplus approach this paper presents a short period north south model based upon the surplus approach formalized by piero sraffa its major innovation is the introduction of a unified international banki ng sector patterned after the euro banking system that creates cred it as a multiple of deposits received from each region the model fac ilities investigation of crowding out and crowding in within and across regions interregional and intraregional competition for c redit and the origins of debt crises including the brimmer kindlebe rger commercial bank loan pushing phenomenon the model also is c ompared briefly with other recent explanations for the developing cou ntry debt trauma copyright 1987 by oxford university press

on migration and risk in ldcs the authors develop the hypothesis that aversion to risk rather than expectations of higher income is the primary motivation for rural urban migration in developing countries this hypothesis maintains that an optimizing risk averse small farmer family will try to place a family member in the urban sector in order to diversify its income portfolio an additional hypothesis related to risk is also considered at the individual rather than the family level annotation

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

migration growth distribution and welfare abstract in this note we argue that the inverted u curve of inequality is a technical derivative of the attributes of the conventional indices of inequality that these indices are inadequate measures of the change in welfare associated with the typical distributional consequences of rural to urban migration and that an explicit welfare judgment with respect to this process should and can be made

north south interaction and commod control a simple model of north south interaction is presented with a keynesian north producing industrial goods and a classical south producing corn if the terms of trade clear the corn market then commodity price stabilisation can only slightly increase the average value of northern real consumption but if there is real wage resistance in the north then output deflation in the north is necessary to avoid inflationary pressure whenever the terms of trade tend to turn against the north commodity price stabilisation could in such circumstances greatly improve northern welfare the paper also examines whether fiscal policy in the north instead of commodity price stabilisation could provide equally large improvements in northern welfare

the case for trade liberalization in developing countries in a broad swing of the pendulum developing countries have been shifting from severe and destructive protection to free trade fever many of the notable examples are in latin america mexico after a major unilateral trade liberalization is now negotiating a free trade agreement with canada and the united states chile traditionally a highly protected country is a leading example of reducing trade barriers argentina and brazil have entered free trade agreements a free trade area for the americas is becoming a serious possibility the enthusiasm for more openness of the economy is not limited to latin america for example korea and turkey are cases of highly successful liberalization there are also cases in africa for example ghana and botswana to demonstrate the possibility and the benefits of opening up this new enthusiasm for freer trade stems from four overlapping sources anti statism the world has seen a broad intellectual swing away from emphasizing the beneficial role of the state in the 1980s and protection is seen as one of the manifestations of an overly intrusive state of course a shift to a liberal trade regime has not always been the by product of a more democratic society chile under pinochet or korea in its liberalizing phase were under authoritarian rule two cheers for the market but not three the saying goes today the market gets at least three cheers which may be at least one too many poor economic performance many developing countries have suffered dismal economic performance and declining productive potential much of the reason can be traced to populist macroeconomic policies that engendered debt crises and hyperinflation of course part of the reason was also a very adverse external environment but since the days of plentiful external credit are gone

search method use by unemployed youth this article presents a search model which shows that search method choices should be related to their costs and expected productivities as well as to nonwage income and wage offer distributions the empirical evidence then shows that the most frequently used search methods i e friends and relatives and direct applications without referral are also the most productive in generating offers and acceptances the number of methods used is affected by factors that presumably reflect opportunities as well as income sources and needs specific methods are chosen in a manner that generates positive average effects on outcomes for those using them

old boy networks as screening mechanisms this paper studies a fulfilled expectations equilibrium in situations in which intermediaries provide personal opinions on the likelihood of success of personnel projects or investments each referee must recommend some candidates from a group of people about whom he has private information the employer uses the recommendations to choose the workers using his expectations about the quality of the recommended and the nonrecommended applicants although the referees use their information strategically the competition among them produces optimal use of the information in the sense that employers make the same choices in equilibrium as they would if they had the same information as the referees

jobs off the farm wealth human capital and social group in rural eastern india abstractthis study examines the effects of wealth human capital and social group on the occupational choice and income of farm households to gain an understanding of the mechanism underlying the

the world price of coal a significant increase in the seaborne trade for coal over the past 20 years has unified formerly separate coal markets into a world market in which prices move in tandem by virtue of its large domestic market the usa has become the residual supplier and price setter in the world coal market changes in multifactor productivity have been the primary cause of the long term fluctuations in coal prices that have been observed in the usa since the end of the second world war and in the world coal market

personal networks and nonagricultural employment the case of a farming village in the philippines abstract this article based on an intensive village survey in the philippines analyzes the effects of personal networks on rural villagers access to nonagricultural occupations and the terms of employment given to them a key finding is that personal networks are selectively used to reduce transaction costs and their impacts on employment conditions vary by size and by location of enterprises we find that when villagers are employed in unskilled work at small enterprises those who use family relative networks receive wage premiums however if we limit our sample to small enterprises located near our study village the family relative network premiums become insignificant presumably because of the overriding influence of the community wide network within a narrow local community contrary to the case of small enterprises unskilled workers wages at large enterprises are not much affected by personal networks but are largely determined by years of schooling and work experience the recent developmen

non farm activity household expenditure and poverty reduction in rural vietnam 2002 2008 summary diversifying into non farm activities has been suggested as an effective way out of poverty for rural households in developing countries using the vietnamese household living standards surveys of 2002 2004 2006 and 2008 we test this claim and investigate the effect of non farm sector involvement on poverty and expenditure growth our endogeneity corrected estimates show that an additional household member involved with non farm activity reduces the probability of poverty by 7 12 and increases the household expenditure by 14 over a two year period our findings also indicate that non farm involvement reduces the hours worked on farm but not the household agricultural income

networks in the modern economy mexican migrants in the u s labor market this paper attempts to identify job networks among mexican migrants in the u s labor market the empirical analysis uses data on migration patterns and labor market outcomes based on a sample of individuals belonging to multiple origin communities in mexico over a long period of time each community s network is measured by the proportion of the sampled individuals who are located at the destination the united states in any year we verify that the same individual is more likely to be employed and to hold a higher paying nonagricultural job when his network is exogenously larger by including individual fixed effects in the employment and occupation regressions and by using rainfall in the origin community as an instrument for the size of the network at the destination

the meaning of kinship in sharecropping contracts analysis of a household survey from the philippines shows that the behavior of sharecroppers with a kinship relation with their landlord is not affected by the disincentive effects of product and factor sharing while behavior of the other sharecroppers responds to the contract terms we characterize the meaning of kinship ties through a survey of opinion conducted among tenants the survey shows that kin landlords help or are expected to help more frequently in case of emergency than other landlords and they do so with a wider range of instruments providing the incentive for cooperative behavior in sharecropping contracts among kin

local and personal networks in employment and the development of labor markets evidence from the cut flower industry in ethiopia summary we examine the roles of local and personal networks in the employment process and the emergence and development of the labor market in ethiopia s growing cut flower industry using primary survey data of 320 workers randomly sampled from all 64 farms we find that workers who were recruited informally using the social ties were paid less than the formally recruited workers at hiring however these workers quickly increased their productivity and the effect of social ties on wages disappeared over time further we find that the development of labor market for this newly emerged industry took place particularly within the industrial cluster

estimating long run economic equilibria with stochastic trends an asymptotic theory is provided to analyze a menu of currently existing estimators of cointegrated systems we study in detail the single equation ecm seecm approach of hendry our theoretical results lead to prescriptions for empirical work such as specifying seecm s nonlinearly and including lagged equilibrium relationships rather than lagged differences of the dependent variable as covariates simulations support these prescriptions and point to problems of overfitting not encountered in the semiparametric approach of phillips and hansen 1990

the work effort and the consumption of immigrants as a function of their assimilation positive self selection has been used to explain the superior economic performance of some immigrant groups even if immigrants and natives are identical however the former face different incentives in particular they bear costs not incurred by natives including monetary costs of moving costs of staying in touch with family and obligations to those left behind nonmonetary costs include stress and loss of location specific human capital the focus of this paper is on how these costs influence the decisions of immigrants relative to those of natives particular attention is given to the role of assimilation

matchmaker matchmaker the effect of old boy networks on job match quality earnings and tenure firms often view job applicant referrals from current employees as more informative than direct applications or referrals through formal labor market intermediaries such as placement firms we argue that old boy networks reduce employers uncertainty about worker productivity using jovanovic s job matching model we show that workers hired through the old boy network should 1 earn higher initial salaries 2 experience lower subsequent wage growth on the job and 3 stay on the job longer than otherwise comparable workers hired from outside the network we find considerable support for this theory using data from the 1972 survey of natural and social scientists and engineers