the female male unemployment rate differential the authors show that bottlenecks in the economy s ability to absorb new entrants do not explain the female male unemployment rate differential in canada the loose attachment of women to the work force explains only one quarter of the differential of overriding importance is the minimum wage if not for minimum wages mature women would have an unemployment rate below that of men relative minimum wages have been falling since 1974 further falls could lead to a negative female male unemployment rate differential and reverse all the standard arguments about a greater female labor force share increasing the natural rate of unemployment

the phillips curve macroeconomic policy and the welfare of canadians a review of the two competing paradigms explaining inflation and unemployment fluctuations singles out the keynesian phillips curve as the clear empirical winner over its classic competitors reestimation of the canadian phillips curve for 1957 90 identifies a sharp structural shift toward a high degree of unemployment hysteresis after 1972 the recent attempt of macropolicy to flatten the aggregate demand curve and limit supply side shock accommodation which aims at lower and more stable inflation is then shown to make unemployment higher and more unstable on average to an extent that is an increasing function of the degree of hysteresis understanding and reducing hysteresis and developing a consensus based incomes policy that has a chance of alleviating the dismal trade off should therefore to top research and policy priorities

a natural rate model of frictional and long term unemployment a simple labor market with spatial separation and markov production shocks is presented in the stationary equilibrium some workers are frictionally unemployed and others are long term unemployed the amounts of frictional and long term unemployment at each location depend on its recent history of productivity shocks producing a local hysteresis effect changes in the parameters affect the equilibrium aggregate amounts of frictional and long term unemployment differently in particular economies with larger moving costs will have more long term and total unemployment but less frictional unemployment this finding is broadly consistent with recently reported stylized facts

the role of non economic endowments introduction to the special section on what we know and what we should know about international knowledge sourcing recent developments in the pattern of international knowledge sourcing have highlighted a new international division of labor in knowledge production which now is affecting emerging as well as advanced countries the source of this division of labor has been identified as residing in the changing economic endowments of these countries we extend this by suggesting that the new international allocation of knowledge related activities is related strongly to a country s non economic endowments our arguments provide context to the papers in this special section

oil price shocks and the macroeconomy this paper examines the impact of oil price shocks and attempts to explain why the rise in oil prices up to 2008 had little impact on the world economy it makes three main arguments first that oil prices have never been as important as is popularly thought second that the most important route through which oil prices affect output is monetary policy when oil prices pass through to core inflation monetary authorities raise interest rates slowing growth based on the second argument the third argument is that high oil prices have not reduced growth in recent years because they no longer pass through to core inflation so the monetary tightening previously seen in response to high oil prices is absent it also argues that oil prices had little impact on the global recession of 20089

job tenure and cyclical changes in the labor market using data on male heads of households from the michigan panel study of income dynamics this paper finds that although short tenure workers accounted for a disproportionate share of total unemployment during the early seventies cyclical fluctuations in joblessness were concentrated among persons currently holding or recently having held longer lasting employment greater unemployment durations were a more important source of rising joblessness than increased separation probabilities and cyclical changes in both variables were larger for recent leavers of medium or long tenure employment than for persons with similar seniority in their current job

the distribution of unemployment spells canada 1978 82 this paper empirically examines entire distributions of unemployment spells according to a novel duration share approach based on decile shares and lorenz curves of unemployment the approach is applied to a canadian micro data source akin to the work experience surveys for the united states the major empirical findings are that long term unemployment accounts for a very substantial proportion of total weeks of unemployment despite the short duration of the average spell of unemployment the structure of unemployment spell distribution differs significantly by gender age education and region and significant cyclical effects on the distribution of unemployment spells are associated with the severe recession in 1982

job creation and job destruction in great britain in the 1980s using data from the workplace industrial relations surveys of 1980 1984 and 1990 the authors investigate processes of job creation and job destruction in britain they find that rates of employment growth job creation and job destruction were higher at the end of the 1980s than at the beginning bothjob creation and job destruction were extremely concentrated about 50 of each was accounted for by just 4 of continuing establishments employment growth was apparently more variable in manufacturing plants than in private service sector workplaces some variables negatively related to employment growth were unionization establishment size establishment age and location in the private manufacturing sector versus private service sector

patterns of internationalisation of corporate technology location vs home country advantages given the trends towards increasing globalisation of markets and of production the globalisation of technology remains a subject of considerable interest to analysts and policy makers in the 1990s this paper provides some new empirical observations for debate and discussion on the patterns of technological activities of large firms outside their home countries it is based on a systematic analysis of the us patenting activities of 220 of the most internationalised firms in terms of their technology in the 1990s although firms are active outside their home countries in the high technology fields such as computers pharmaceuticals telecommunications image and sound and materials quite a sizeable proportion of their foreign activities are concerned with process and machinery technologies moreover a comparison of the technological advantage of the company at home and the advantage of the location shows that in a large majority of cases firms tend to locate their technology abroad in their core areas where they are strong at home these results suggest that adapting products and processes and materials to suit foreign markets and providing technical support to off shore manufacturing plants remain major factors underlying the internationalisation of technology they are also consistent with the notion that firms are increasingly engaging in small scale activities to monitor and scan new technological developments in centres of excellence in foreign countries within their areas of existing strength however there is little evidence to suggest that even these most internationalised firms routinely go abroad to compensate for their weakness at home

a study of the impact of sectoral shifts on aggregate unemployment in canada the recent trend in macro economic literature has been to explain cycles in aggregate output and employment in terms of unexpected nominal shocks only in these models the natural rate of unemployment is constant this paper diverges from this approach and following a recent paper by david lilien 1982 considers the impact of real as well as nominal variables the main findings are 1 a significant part of the fluctuations in the canadian unemployment over the 1957 83 period was caused by real shocks to the economy and 2 most of the transmission of the business cycle from the united states to canada is effected through real variables as well une etude de limpact de deplacements sectoriels sur le niveau de ch6mage agrege au canada dans la litterature macroeconomique recente on a eu tendance a expliquer les cycles dans le niveau de la production et de l emploi a peu pres strictement en termes de chocs nominaux non anticipes dans ces modeles le taux de ch6mage naturel est constant ce memoire prend des distances par rapport a cette approche et suit pluto t la direction suggeree par un memoire recent de david lilien qui considere l impact des variables reelles tout autant que celui des variables nominales les resultats principaux sont 1 une portion significative des fluctuations dans le niveau du chomage canadien entre 1957 et 1983 a et causee par des chocs reels subis par l economie 2 le gros de h1 transmission du cycle economique des etats unis vers le canada se fait par le truchement des variables reelles

business cycles with costly search and recruiting a business cycle model is developed in which output is traded on lucas phelps islands and labor services on each island are exchanged through costly search and recruiting with transactions externalities the model exhibits persistent involuntary unemployment and inefficient equilibria even though there are no nominal rigidities and no unexploited privately attainable gains from trade it also exhibits employment fluctuations without any real wage fluctuations it yields a lucas aggregate supply curve to a linear approximation it also implies that the natural rate of unemployment depends positively upon the variability and persistence of relative price shocks

the hartz reforms the german miracle and labor reallocation abstract we analyse the recent history of unemployment and labor reallocation in the german economy using a variant of lucas and prescott s 1974 reallocation model modified to include unemployment benefits rest unemployment and aggregate shocks we focus on the implied effects of the hartz reforms and the great recession in the model and compare them with the corresponding movements in german data we find that the model s qualitative predictions for reallocation and unemployment correspond well with the observations when we calibrate the model to assess its quantitative performance however we find that it significantly overestimates the changes of both reallocation and unemployment since the introduction of the hartz reforms

overcoming distrust how state owned enterprises adapt their foreign entries to institutional pressures abroad state owned so enterprises are subject to more complex institutional pressures in host countries than private firms these institutional pressures arise from a weak legitimacy of state ownership in some countries which arises from a combination of ideological conflicts perceived threats to national security and claimed unfair competitive advantage due to support by the home country government these institutional pressures directed specifically at so firms induce them to adapt their foreign entry strategies to reduce potential conflicts and to enhance their legitimacy testing hypotheses derived from this theoretical argument for subsidiaries of listed chinese firms we find that so firms adapt mode and control decisions differently from private firms to the conditions in host countries and these differences are larger where pressures for legitimacy on so firms are stronger these findings not only extend institutional theory to better explain differential effects on different entrants to an organizational field but demonstrate how foreign investors of idiosyncratic origins may proactively build legitimacy in host societies

taiwanese it firms offshore r d in china and the connection with the global innovation network abstract although it is evident that technology is becoming increasingly globalized resulting in the expansion of r d internationalization by firms despite this discernible trend the substantial body of literature in this area is based mainly on the experience of the developed country this paper aims to contribute to the understanding of this issue by examining the r d internationalization of a newly industrializing country taiwan being a prime example and its connection with the global production network we begin with an examination of the literature on r d internationalization and globalization based upon which we propose a conceptual framework adapted from dunning s eclectic paradigm in doing so we set out to develop arguments based not only on the reasons why cross strait r d internationalization may be undertaken by taiwanese information technology it firms but also the likely patterns of their r d portfolios across the strait drawing on an original questionnaire survey and firm level interviews the paper presents and discusses empirical data on the cross strait r d deployment of taiwanese it firms it then goes a stage further using the smiling curve to put forward a holistic view of the cross border innovation network in the it hardware industry in order to determine what cross strait r d internationalization means to the global production network

the rise of unemployment in france whereas the french unemployment rate had remained less than 2 per cent throughout the postwar years up to 1967 it has since increased having been pushed by an irresistible trend to 2 7 per cent in 1972 4 1 per cent in 1975 5 2 per cent in 1978 7 3 per cent in 1981 and 9 7 per cent in 1984 annual averages ilo definitions the size of the labour force had hardly increased before 1962 during the past 20 years its growth has been slowly accelerating but has remained moderate 0 8 per cent per annum between 1975 and 1982 on the other hand employment increased steadily from 1962 up to the first oil shock but has been roughly constant since then see figure 1 my survey of the analysis of these features and of their explanation will follow traditional lines it will first consider the evolution of the labour force as well as changes in the volume structure and nature of the supply of labour the second section dealing with the demand for labour will pay particular attention to changes in the economic and institutional environment of firms section iii will examine what can be said about a possible increase in frictional

international effects of stock market dispersion we study the extent to which stock market dispersion is related to unemployment and output growth for 16 countries over 20 years using panel vector auto regressions and panel dynamic regressions we find increases in stock market dispersion across industries to induce future increases in unemployment and future decreases in industrial production ip growth moreover the responses of unemployment and ip growth following a positive shock to stock market dispersion are persistent and are robust to various controls sample periods and estimation methods our article provides cross country evidence in support of the hypothesis that shifts in demand across industries negatively affect employment

sectoral shifts unemployment and vacancies an empirical analysis for the netherlands abstract in this paper the correlation between sectoral dispersion of employment growth and unemployment is analyzed empirical results for the netherlands indicate that fluctuations in unemployment are due to aggregate demand factors with no substantial influence of shifts in sectoral demand

regional employment subsidies and migration in this paper the traditional efficiency basis for employment subsidies to high unemployment regions is modified to incorporate a description of the transition to employment expectations of employment depend not just on the rate of unemployment but also on job turnover rates thus unemployed in the high unemployment regions are more incline to migrate at an observed migration equilibrium implicit migration costs are higher and expected income lower than they would be in the simple model this means that the shadow price of a job in the high unemployment region is lower than in the simple model and less than the wage rate

structural unemployment and disequilibrium abstract in this paper we present a disequilibrium model of the labor market which allows us to distinguish cyclical unemployment due to wage rigidity from structural unemployment this is done through the insertion in the exchange condition of an aggregate disequilibrium model of variables measuring mismatch between disaggregated labor supplies and labor demands such a model also allows unemployment and job vacancies to coexist the model is estimated using canadian quarterly data from 1966 to 1983 our results imply that structural unemployment due to inter industrial shocks while significant is fairly small

sectoral shifts and cyclical unemployment a substantial fraction of cyclical unemployment is better characterized as fluctuations of the frictional or natural rate than as deviations from some relatively stable natural rate shifts of employment demand between sectors of the economy necessitate continuous labor reallocation since it takes time for workers to find new jobs some unemployment is unavoidable this paper presents evidence that most of the unemployment fluctuations of the seventies unlike those in the sixties were induced by unusual structural shifts within the u s economy simple time series models of layoffs and unemployment are constructed that include a measure of structural shifts within the labor market these models are estimated and a derived natural rate series is constructed

the persistence of unemployment how important were regional extended unemployment insurance benefits this paper assesses the contribution of regionally extended unemployment insurance benefits to the persistence of the canadian unemployment rate during the 1980s we use administrative data associated with the operation of the ui program to produce counts of the number of ui claimants by benefit phase the data suggest that the change in the number of unemployed individuals above the level prevailing in 1981 is much larger than the change in the number of regionally extended benefit recipients we also examine the time series properties of the number of ui claimants by benefit phase and find that the number of regionally extended recipients is not unusually persistent indeed this series displays less persistence than the number of claimants in other benefit phases we recognize that the increase in potential benefit duration caused by regionally extended benefits may lengthen the time claimants spend in the initial and labour force extended benefit phases but we conclude that this indirect channel would have to be particularly strong to prevent one from concluding that the number of regionally extended benefit recipients was of relatively little importance in explaining the increased level and persistence of the canadian unemployment rate during the 1980s la persistance du chomage est ce que les prestations d assurance chomage pendant de plus longues periodes dans certaines re gions ai haut taux de ch6mage sont un facteur important ce m6moire 6value l importance de la politique de p6riodes allong6es de prestations d assurance ch6mage pour tenir compte de la conjoncture r6gionale sur la persistance du taux de ch6mage canadien dans les ann6es 80 les auteurs utilisent les donn6es administratives du programme d assurance ch6mage pour d6velopper des mesures du nombre de b6neficiaires selon la phase de prestation il semble que l augmentation du nombre des ch6meurs au dessus du niveau de 1981 est beaucoup plus grande que 1 augmentation dans le nombre des r6cipiendaires des prestations dites regionales les auteurs examinent aussi les propri6tes de la s6rie chronologique des r6cipiendaires de prestations d assurance ch6mage an earlier version of this paper was presented to the 1993 meetings of the canadian economics association we would like to thank pierre fortin craig riddell paul storer and two anonymous referees for useful comments although this work was supported by the business and labour market analysis group of statistics canada and the sshrcc it remains the sole responsibility of the authors canadian journal of economics revue canadienne d economique xxviii no 3 august aout 1995 printed in canada imprim6 au canada 0008 4085 95 555 67 1 50 canadian economics association this content downloaded from 207 46 13 176 on mon 20 jun 2016 05 30 32 utc all use subject to http about jstor org terms 556 miles corak and stephen r g jones selon la phase de prestation et constatent que le nombre des recipiendaires de ces prestations r6gionales n est pas persistant en fait cette s6rie chronologique montre moins de persistance que le nombre des ben6ficiaires dans les autres phases on reconnait que l accroissement dans la duree potentielle des prestations attribuable a la politique regionalisee peut accroitre le temps que les beneficiaires passent dans la phase initiale et la phase ult6rieure arrim6e a la conjoncture r6gionale mais les auteurs concluent que cet effet indirect devrait 6tre particulierement fort pour qu on ne soit pas amen6 a conclure que le nombre des b6neficiaires qui reqoivent des prestations pendant une periode plus longue n a eu qu une importance relativement faible dans l explication du niveau plus eleve et de la persistance du taux de chomage canadien dans les annees 80

aggregate disturbances or sectoral shifts canadian evidence this paper is an empirical investigation of the relative importance of aggregate disturbances and sectoral shifts in the explanation of unemployment cycles in canada two contributions are made in this paper first the identification of these two shocks is accomplished by the mean and the dispersion of industrial stock returns respectively secondly detailed discussions on the interindustry employment movement are provided and a corresponding dispersion is reexamined using quarterly data over three digit industries all results here indicate the insignificance of sectoral shifts in canada

offshoring administrative and technical work new fields for understanding the global enterprise in this paper we introduce the journal of international business studies special issue on offshoring administrative and technical services ats in doing so we have attempted to locate the topic within the international business research tradition as well as suggest challenges and opportunities that the phenomenon offers to theoretical and empirical research in the field we examine the interplay of costs knowledge and innovation in the evolution of ats offshoring from modest beginnings to its current stature as an accepted business practice we suggest that understanding the continuing evolution of ats offshoring requires researchers to take into account not only the business imperative of cost saving but also a more complex set of underlying factors and potential outcomes we argue that the rapid growth of ats offshoring has brought about an accumulation of resources including financial flows knowledge infrastructure and human capital to create new platforms for knowledge creation and innovation low costs may characterize the initial conditions for offshoring but they also provide the basis for up market moves as firms increasingly pursue innovation based strategies we introduce the papers in the special issue as integral elements in our discussion contributing new ideas that stimulated our thinking and hopefully will do the same for others seeking to understand this emerging area of globalization and international managerial practice journal of international business studies 2009 40 887 900 doi 10 1057 jibs 2009 22

an estimate of a sectoral model of labor mobility this paper develops a model of sectoral labor mobility and tests its main implications the model nests two distinct hypotheses on the origin of mobility a sectoral shocks and b worker employer mismatch we estimate the relative importance of each hypothesis and find that the bulk of labor mobility is caused by mismatch rather than by sectoral shift we then try to put a value on society s match specific information that is we ask to what extent the availability of the option to change jobs raises gnp we find that the mobility option raises expected earnings by roughly between 8 5 percent and 13 percent of labor earnings which translates to an increase in gnp of between 6 percent and 9 percent

international expansion of emerging market enterprises a springboard perspective in this article we present a springboard perspective to describe the internationalization of emerging market multinational corporations em mnes em mnes use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home in so doing they overcome their latecomer disadvantage in the global stage via a series of aggressive risk taking measures by aggressively acquiring or buying critical assets from mature mnes to compensate for their competitive weaknesses we discuss unique traits that characterize the international expansion of em mnes and the unique motivations that steer them toward internationalization we further delineate peculiar strategies and activities undertaken by these firms in pursuit of international expansion as well as internal and external forces that might compel or facilitate their propulsion into the global scene we finally explain the risks and remedies associated with this international springboarding strategy and highlight major issues meriting further investigation

market versus technology drive in r d internationalization four different patterns of managing research and development research and development are subject to different location drivers the analysis of 1021 r d units each distinguished by its main orientation towards either research or development work reveals that research is concentrated in only five regions worldwide while development is more globally dispersed our research is based on 290 research interviews and database research in 81 technology intensive multinational companies we identify two principal location rationales access to markets and access to science as the principal determinants for four trends that lead to four archetypes of r d internationalization national treasure market driven technology driven and global their organizational evolution is characterized by four trends the model is illustrated with short cases of international r d organization at kubota schindler xerox and glaxo wellcome differences in rd separation seems to contradict this trend we argue that this need not be the case for there are good reasons to maintain some independence between research and development

unemployment and interindustry labour mobility in canada in the 1980s the determinants of interindustry mobility of labour and its relationship to the unemployment rate is examined using micro data on canadian workers from 1980 81 1982 83 and 1985 86 it contrasts the implications of the dynamic reallocation model lilien 1982 in which rising aggregate unemployment is due to in creased dispersion in the net hiring rates of firms implying positive covariance of interindustry mobility and unemployment rates with the older keynesian perspective that high unemployment chills labour market mobility implying a neative relationship qualified support is obtained for the chilling model as well as standard results on the role of job tenure hours worked etc the general moral is the cyclical sensitivity of labour market behaviour i e individuals appear to react to the aggregate unemployment rate

unemployment in britain male unemployment in britain has risen from around 2 per cent in the 1950s to around 17 per cent in 1985 see figure 1 the figures are for male unemployment because there is no consistent series for women 1 even more remarkably unemployment has fallen in only three years out of the last twenty 1973 1978 and 1979 to account for this we need a model that explains both changes in the natural or non accelerating inflation rate of unemployment nairu and deviations from it we use a three equation supply side model centred on the labour market this has two main features the first concerns the determination of employment in the short run the labour demand function that we use cuts through the fruitless debate now raging especially in europe as to whether current unemployment is classical or keynesian according to the classical view employment is too high because real wages are too high according to the keynesian view real wages are not binding and unemployment is high because the product market does not clear with prices too high relative to nominal demand the whole debate is set in the framework of perfect competition yet in perfect competition prices are set by impersonal forces and it is not clear what could possibly stop prices clearing the market it is much more reasonable to think of prices as being set by imperfectly competitive firms existing prices being the best they can think of given the demand they face in this context firms demand for labour will depend on both the real product wage and the level of real aggregate demand this is the demand function we estimate and it conforms both to common sense and to the data however this does not imply that employment can be made to grow without limit by pumping up real demand for in the medium term when price surprises are eliminated our model determines three variables employment real wages and real demand on the basis of three equations an employment equation a price equation and a wage equation thus in the medium term there is a natural level of employment and corresponding to this a natural level of real aggregate demand the second key feature of our model concerns the medium term determination of unemployment in the medium term the planned mark up of wages over prices in wage settlements must be consistent with the mark up of prices over wage costs in employers pricing behaviour for if wage setters try to set real product wages higher than is consistent with employers pricing behaviour this generates ever increasing inflation thus the key to understanding unemployment in the medium term is the behaviour of wage setters if events occur that push them towards too high real wages then unemployment has to rise to offset these influences we shall call these influences wage pressure variables or push factors and they are clearly crucial in understanding unemployment the variables here include the social security system employment protection

cyclical variations in wage differentials and unemployment this paper attempts to reformulate in a general equilibrium framework reder s model which explains cyclical variations in wage differentials and their general tendencies to narrow specifically i focus on the three aspects of his model the microeconomic behavior of a firm under imperfect information about labor quality the mechanism of the economy creating unemployment and the interaction between wage differentials and unemployment i also explore its implications for the macroeconomic issues on the characteristics of current unemployment and the question of why aggregate employment fluctuates

sectoral shocks learning and aggregate fluctuations we present a model in which sectoral shocks have aggregate consequences the model relies on irreversible investment and imperfect information to slow the adjustment of expanding industries we show that this gradual expansion is sub optimal

the canadian real wage phillips curve a sectoral shift interpretation post world war two data in canada is found to be consistent with the hypothesis that nominal wages prices and real wages are integrated of order two while the unemployment rate is integrated of order one when considering bivariate statistical relationships it is found that solid evidence for co integration exists only between the rate of change of real wages and the level of the unemployment rate that is the data are consistent with a real phillips curve interpretation it is argued that this finding can be explained by the sectoral reallocation view of unemployment

two views of the geographic distribution of unemployment this paper investigates the extent to which equilibrium and disequilibrium explanations can account for unemployment rate differentials between cities it shows that shocks that disturb the steady state relationship among the unemployment rates of metropolitan areas tend to be eliminated by mobility within a single year it also shows that high unemployment areas tend to be those with attractive climates and amenities high wages and high unemployment insurance it argues that the main effect of government programs that create jobs in high unemployment areas will be to lure additional job seekers to those areas

how natural is canada s high unemployment rate abstract a reduced form price equation for canada 1956 1984 yields a stable estimate of 4 9 percent for the natural unemployment rate of men aged 25 and over with strong evidence against hysteresis once structural influences are accounted for the resulting profile for the aggregate natural unemployment rate rises smoothly from 5 5 percent in 1961 to a maximum of 8 0 percent in 1977 1978 and then declines rapidly to 6 4 percent in 1985 calculations based on an estimated production structure for the aggregate non energy sector of canada provide additional evidence against the excess real wage hypothesis and for the view that the recent fluctuations in canada s unemployment rate are mostly of the keynesian variety

the globalisation of technology what remains of the product cycle model this paper reexamines two hypotheses associated with earlier versions of the product cycle model the first hypothesis that innovations are almost always located in the home country of the parent company is rejected on the basis of evidence drawn from one hundred years of u s patent office data the second hypothesis that the international dispersion of activity is led by technology leaders is historically valid however over the last twenty years technology leaders have been ahead instead in the globalization of technology that is in developing internal international networks to exploit the locationally differentiated potential of foreign centers of excellence c 1995 academic press inc copyright 1995 by oxford university press

how do different drivers of r d investment in foreign locations affect domestic firm performance an analysis based on swiss panel micro data the aim of this article is to investigate the differences between specific motives of rd 2817 companies shows first that factors related to firm specific knowledge oriented advantages are more important for explaining the likelihood of foreign r d activities than factors reflecting disadvantages related to home location second knowledge oriented motives of foreign r d positively influence the innovation performance of domestic firms whereas market and resource oriented strategies have a positive impact on labor productivity copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

deriving natural rates of unemployment for sub national regions the case of canadian provinces in order to pursue informed stabilization policies it is vital for policy markers to have estimates of how much of the total unemployment rate can be classified as cyclical rather than natural unemployment this paper describes a method for generating regional natural rate estimates and applies this method to the case of canadian provinces results indicate that unemployment insurance generosity and relative minimum wages play an important role in determining natural unemployment rates in canadian provinces one of the enduring characteristics of the canadian labour market has been substantial and peresistent unemployment rate disparities across provinces the results of this study indicate that these disparities are primarily explained by differences in provincial values of structural variables such as unemployment generosity and by differences in provincial sensitivities to these structural variables a furher result is that variation in cyclical unemployment rates is substantially less in the traditio

defining the government s debt and deficit although the budget deficit and the public debt feature prominently in political debate and economic research there is no agreement about how they should be measured they can b e defined for different sets of public institutions including the nested sets corresponding to central government general government and the public sector and for any definition of government there are many measures of the debt and deficit including those generated by four kinds of accounts cash financial full accrual and comprehensive which can be derived from four nested sets of assets and liabilities each debt and deficit measure says something about public finances but none tells the whol e story each is also vulnerable to manipulation and is likely to be manipulated if it is subject to a binding fiscal rule or target narrow definitions of government encourage the shifting of spending to entities outside the defined perimeter of governme nt narrow definitions of debt and deficit encourage operations involving off balance sheets assets and liabilities while broad measures are susceptible to the mismeasurement of on balance sheet assets and liabilities reviewing the literature on these is sues the paper concludes that governments should publish several measures of the debt and deficit in a form that clearly reveals their interrelationships

the beveridge curve and unemployment fluctuations in canada we estimate the impact of cyclical sectoral and participation shocks and that of the trend on both the canadian unemployment rate and the job vacancy rate over the 1969 to 1998 period we conclude that a rise in the canadian unemployment rate of almost 5 percentage units occurred between 1972 and 1982 because of participation rate shocks and a trend movement because the trend also explains the leftward shift of the beveridge curve observed in the 1990s this shift cannot be interpreted as a decline in the natural unemployment rate la courbe de beveridge et les fluctuations du chomage au canada les auteurs evaluent la contribution des chocs sectoriels des changements dans le taux d activite des fluctuations cycliques et de la tendance sur les mouvements du taux de chomage et du taux de postes vacants pendant la periode 1969 98 ils concluent que le taux de chomage non conjoncturel s est accru de pres de 5 points de pourcentage entre 1972 et 1982 en raison de chocs dans le taux d activite et d un mouvement tendanciel le deplacement vers la gauche de la courbe de beveridge observe dans les annees 1990 est pour sa part le resultat d une baisse tendancielle des postes vacants et n indique nullement que le taux de chomage naturel ait diminue pendant cette periode

the aggregate effects of sectoral reallocations abstract can a one time permanent change in the fundamentals behind the sectoral composition of the economy prompt an aggregate downturn can this downturn be non negligible even if one uses us data to determine the relative size of gross vs net job flows and the importance of job creation costs can one consider the military build down of the 1990s as a plausible cause for the 1990 1991 recession do sectoral reallocations generate responses that are qualitatively similar to productivity shocks we use a variant of the mortensen pissarides 1994 review of economic studies 61 397 415 job creation destruction model calibrate it to us labor market data and run experiments that suggest one can answer yes to all these questions

what are the most promising conduits for foreign knowledge inflows innovation networks in the chinese pharmaceutical industry we study innovation networks in emerging markets where foreign actors have been identified as key sources of knowledge spillovers as well as progenitors of industry clusters focusing on connectivity as a channel for international knowledge sourcing we widen our lens beyond mnes to include critical innovative actors such as research institutions i e universities and research centers we examine the geographic dispersion of co inventor networks generated by us patents associated with the chinese pharmaceutical industry previous research has highlighted the role of organizationally driven mne networks as enablers of foreign knowledge inflows to less developed countries however our results emphasize the critical role of individually motivated networks arising from advanced economy research institutions in connecting china to global knowledge networks

accumulating technological competence its changing impact on corporate diversification and internationalization recent studies have suggested that firm specific technological competence may be diversified and internationalized we show that increases in competence increased corporate technological diversification until the early 1970s and then again more recently however a new interrelationship has now emerged between the accumulation diversification and internationalization of technological competence due to the formation of internationally integrated networks within firms the empirical analysis consists of a dynamic cross section model applied to the corporate patenting in the us of 166 of the largest european and us industrial firms from 1901 to 1995 copyright 2000 by oxford university press

equilibrium unemployment and the efficient job finding rate a model of the labor market is constructed in which unemployment is generated by labor turnover and the process of selecting new recruits firms recruitment policies affect workers job finding probabilities and are known to job seekers by reputation the value of visiting a firm thus depends on the probability of being hired as well as on the terms of employment and in equilibrium is equal at all firms the principal results obtained are that the equilibrium unemployment rate is efficient and that there are no external effects of search by workers or recruitment by firms

why are companies offshoring innovation the emerging global race for talent this paper empirically studies determinants of decision by companies to offshore innovation activities it uses survey data from the international offshoring research network project to estimate the impact of managerial intentionality past experience and environmental factors on the probability of offshoring innovation projects the results show that the emerging shortage of highly skilled science and engineering talent in the us and more generally the need to access qualified personnel are important explanatory factors for offshoring innovation decisions moreover contrary to drivers of many other functions labor arbitrage is less important than other forms of cost savings the paper concludes with a discussion of the changing dynamics underlying offshoring of innovation activities suggesting that companies are entering a global race for talent

search unemployment and growth we develop a model to study the effects of changes in the size of technological innovations upon search and waiting time unemployment when search is costly and shocks are positively autocorrelated we find that increases in the size of innovations increase steady state search decrease steady state waiting time unemployment and decrease total unemployment

searching for a will o the wisp an empirical study of the nairu in canada abstract this paper demonstrates the uncertainty surrounding estimates of the non accelerating inflation rate of unemployment nairu a reduced form phillips curve is used to develop a generic model of the nairu which nests competing hypotheses about the specific form of the inflation unemployment relationship empirical results for the canadian economy show that the range of prime age male nairu s generated by statistically satisfactory and economically reasonable estimating equations covers almost the entire range of canadian post war prime age male unemployment experience estimates of the nairu depend heavily on the form of the estimating equation the operational definition of key variables and the data sample period

unemployment in canada and the united states reduced form unemployment equations containing aggregate demand structural and frictional variables are estimated for canada and the united states post 1981 increases in unemployment rates are explained almost entirely by aggr egate demand variables although structural sectoral variables make i mportant contributions to changes in the gap between the two countrie s unemployment rates for both countries the results support the fo llowing monetarist propositions monetary variables are the prime determinants of the business cycle exogenous investment shocks are typically of minor importance and macro policy has tended to be dest abilizing

perspectives on multinational enterprises in emerging economies multinational enterprises mnes play a pivotal role in the development of many emerging economies in consequence they became the focus of scholarly research by economists and policy analysts in contrast international business scholars have been comparatively uninterested in analysing this role of mnes yet they could make important contributions to these debates first studies taking the individual firms as starting point would enhance understanding of the interaction between mnes and the local environment second theories and research methodologies developed in international business research could provide new insights into the dynamics of mnes in emerging economies the objective of this paper is to motivate more international business scholars to engage in research on positive and negative spillovers from foreign direct investment fdi in emerging economy societies to advance this research agenda scholars need to analyse the specific activities and capabilities of the firms involved and the impact of fdi on the broader social and environmental context for management this agenda raises the ethical question to what extent ought businesses to care about their local stakeholders

the globalization of r d results of a survey of foreign affiliated r d laboratories in the usa abstract this paper examines the globalization of innovation and the phenomenon of foreign direct investment fdi in research and development to do so it draws from a survey of foreign affiliated r d laboratories in the united states while the literature on foreign direct investment has emphasized the role of markets in driving off shore investments the main conclusion of this research is that the globalization of innovation is driven in large measure by technology factors of particular importance is the objective of firms to secure access to scientific and technical human capital

a discussion of belgian unemployment combining traditional concepts and disequilibrium econometrics with a gdp of less than 100 billion and exports of more than 60 billion belgium comes perhaps closer than any other country to being a small open economy consequently trends in world trade and export performance have a major impact on domestic activity whereas the impact of domestic fiscal policy is damped by import leakages table 1 presents a few figures confirming these observations

excess worker reallocation workers face a trade off between macroeconomic and individual incentives to work in different occupations industries namely between search frictions and personal comparative advantages workers endowed with heterogeneous multi dimensional skills search for jobs that require different skill combinations in equilibrium specialized individuals contact few selected types of vacancies where they are likely to be hired those with weak comparative advantages are seldom chosen among competing applicants thus seek any job type in a tight labour market comparative advantages dominate waiting costs offsetting labour mobility across industries occupations excess worker reallocation is lower and matches are more successful consistently with direct and indirect evidence

business cycles and labor market search the quantitative implications of labor market search for economic fluctuations are evaluated in the context of a real business cycle model incorporating labor market search into the model is found to improve its empirical performance along several dimensions in particular hours now fluctuate substantially more than wages and the contemporaneous correlation between hours and productivity falls in addition the model replicates the observation that output growth displays positive autocorrelation at short horizons overall the empirical results suggest that the labor market search environment embodies a quantitatively important propagation mechanism copyright 1996 by american economic association

accounting for unemployment a labour market perspective i examine whether prolonged high unemployment in canada can be attributed to various structural causes rather than to demand deficiency as found by macro econometric models the answer is largely negative neither the dispersion of sectoral growth rates nor excessive and rigid real wages can convincingly account for most unemployment contentions to the contrary are based upon inappropriately partial analyses enduring shifts in industrial structure have if anything been declining labour mobility is high much unemployment lasts too long to be frictional fuller quantitative understanding of the nature of unemployment can be achieved only in a more general framework

bottlenecks and the phillips curve a disaggregated keynesian model of inflation output and unemployment benchmark macroeconomic models of output and inflation combine the demand side of the economy with aggregate supply equations based upon some version of the phillips curve in contrast to classical and new classical models such as lucas i972 and sargent 1979 chs i xii and xvi in which prices jump instantaneously to market clearing levels the gradual price adjustment approach represented by tobin 1972 laidler and parkin i975 section 4 barro and grossman 1976 ch 5 sargent 1979 ch ii and ch v i okun i98i and perry i983 take wages and or prices to be predetermined at an instant in time while their rates of change depend on the level of aggregate output in the prototype complete macroeconomic model incorporating this approach output is determined by aggregate demand equations while the augmented phillips curve specifies that prices move in a direction which will tend to return output to its equilibrium value this short run keynesian long run monetarist character is typical of many structural macroeconometric models it is the standard textbook account found for example in dornbusch and fischer i98i and is implicit in much current research there are fundamental questions of consistency in the type of model just described the central difficulty is that with wages and prices predetermined the non market clearing analysis ofbarro and grossman i 976 ch 2 and malinvaud i977 is applicable but in this world the aggregate demand equations are decisive only in the keynesian regime in the other regimes which must arise at high levels of aggregate demand the effective supplies of output or labour or both must be modelled indeed at the aggregate level it is difficult to provide a coherent account of how it is possible to have output above its equilibrium value since this would require labour and output in excess of their notional supplies violating barro and grossman s min condition that quantities be determined by the short side of the market an appealing line for addressing this last difficulty is to disaggregate markets an approach taken by hansen i970 tobin i972 and barro and grossman i976 ch 5 however because each market can be in either excess supply or demand a formal fixed price general equilibrium model appears to be intractable due to the resulting multiplicity of regimes and is not attempted by these authors in this paper these problems are overcome in a disaggregated model in which

duration and concentration of unemployment this paper examines labour market turnover as a determinant of unemployment in canada the distribution of completed spells of unemployment is generated from gross flow data by using hazard functions unemployment is found to be more concentrated in long spells than can be expected under markov processes difficulties in access to jobs are also revealed in a high proportion of unemployment spells not ending in jobs but in withdrawals from the labour force the incidence of multiple spells of unemployment is also high on balance the characterization of unemployment and the policy conclusions differ markedly from those emphasized by the turnover literature duree et concentration du ch6mage ce memoire examine le roulement sur le marche du travail comme une force determinante du ch6mage au canada la distribution de la longueur des periodes de ch6mage est etablie a partir des donnees brutes par le moyen de fonctions de risque on trouve que le chomage a tendance a se concentrer bien davantage en periodes plus longues que ne le suggererait un modele markovien le serieux des difficultes que les travailleurs ont a se donner acces a un emploi est revele par la proportion des periodes de ch6mage qui se termine non pas par un emploi mais par un retrait de la main d oeuvre active l incidence de plusieurs periodes de chomage est tres forte d un facon generale les diagnostics et les politiques recommendees par la litterature specialisee qui met l accent sur le roulement sur le marche du travail comme force determinante ne semblent pas etre supportes par les resultats des auteurs

wage gaps factor shares and real wages the relationships which link real wages capital intensity and factor shares are tested as a prelude to tests of the relationship between wage rigidities and labour market institutions evidence from seven countries indicates that the evolution of factor shares is well explained by changes in capital intensity which is itself well explained by product wages and technical progress a key implication is that changes in full employment capital labour ratios have been the dominant reason for the longer run decline of profit shares in europe and japan relative to the united states it follows that changes in cyclically adjusted factor shares provide little or no information regarding the gap between the actual real wage and its full employment value

work rest and search unemployment turnover and the cycle this paper presents a model that generates procyclical search procyclical labor productivity and countercyclical unemployment broadly consistent with the actual behavior of these time series concretely the model introduces an aggregate shock into the sectoral demand shift model of the type analyzed by lucas and prescott if aggregate shocks operate multiplicatively and are autocorrelated the payoff to unemployed search can be procyclical to an extent large enough to offset the productive losses associated with search that also are procyclical

the beveridge curve and regional disparities in canada the beveridge curve establishes an inverse relationship between the unemployment rate and the vacancy rate it has been documented and discussed at length by blanchard and diamond 1989 for the united states the unemployment vacancy relationships of the canadian economy and its regions are considered this analysis reveals some important distinctions in the behaviour of the regional baveridge curves and some interesting similarities at the aggregate level the observations are not strikingly different from those of blanchard and diamond for the us economy

structural unemployment in the united states the effects of interindustry and interregional dispersion structural unemployment in the united states the effects of interindustry and interregional dispersion the effects of sectoral shifts measured by dispersion in the growth rates of employment or earning across industries or regions on unemployment are tested in a specification controlling for the effects of other labor market variables and shifts in the demographic composition of the labor force interindustry and geographical shifts in labor demand have significant unemployment effects with adult males the group most strongly affected the estimated equations imply that most of the fluctuation in unemployment over the period 1956 87 was been due to microeconomic causes rather than aggregate demand i introduction the unemployment rate in the united states increased from an average of 4 9 percent for 1956 73 to 7 2 percent for 1974 87 it is of considerable importance for purposes of economic policy to evaluate the contributions of various microeconomic and macroeconomic factors to this increase in the unemployment rate if the primary cause is deficient aggregate demand then the appropriate policy response may include stimulative monetary and fiscal policy if microeconomic factors are most significant then the appropriate policies would be microeconomic in nature job training programs restructuring of minimum wage laws and unemployment insurance programs etc the period from 1974 to 1987 differed from the earlier postwar period in several widely recognized ways oil prices increased dramatically in 1974 and 1979 and decreased substantially beginning in 1982 the steady postwar increase in the female labor force participation rate became more rapid in the 1970s the large population cohort associated with the postwar baby boom began reaching maturity and entering the labor market in the early 1970s inflation in the united states was sustained at levels higher than ever before the dollar began floating against the currencies of other industrial countries following the collapse of the bretton woods system in 1971 and fluctuated considerably in both nominal and real value first west germany then japan and most recently taiwan and south korea developed impressive manufacturing bases in industries in which u s exports had formerly faced far less competition government expenditures on income transfer programs accelerated dramatically in the 1970s while regulatory policies were changed in many industries the influence of these disturbances on the natural rate of unemployment has been modeled through three main channels 1 the effects of labor market distortions such as minimum wage laws unemployment insurance and unions 2 the effects of changes in the demographic composition of the labor force and 3 the effects of shifts in the sectoral composition of production and employment a growing literature has emerged following david lilien s 1982a finding that sectoral shifts measured by interindustry dispersion in rates of employment growth explain much of the increase in unemployment in the late 1970s however the studies relating unemployment to dispersion measures have largely ignored the effects of demographic changes and other traditional labor market variables the present paper tests whether dispersion variables help to explain unemployment when the effects of several market distortion variables and changes in the demographic composition of the labor force are taken into account i also examine the relative explanatory power of several alternative measures of both interindustry and interregional dispersion the second section of the paper summarizes the literature on the effects of dispersion on unemployment the results of my empirical analysis are presented in section iii and applied to current economic policy issues in section iv the final section of the paper summarizes my conclusions

regional and sectoral evidence of the macroeconomic effects of labor reallocation a panel data analysis this paper revisits the sectoral shifts hypothesis by examining unemployment fluctuations for 48 u s states over the period 1990 01 2011 12 we develop a panel approach that incorporates dynamics parameter heterogeneity aggregate factors and cross sectional dependence our findings provide support for a positive and significant effect of the employment dispersion index on unemployment this outcome is robust under alternative specifications and measures of employment dispersion the empirical evidence corroborates the presence and relevance of cross sectional dependence and heterogeneity among states the results show that once unobserved common factors and cross state heterogeneity are taken into account labor reallocation has a significant effect on unemployment that is half the size of the estimate when cross sectional dependence is not taken into account

interpreting the beveridge curve an agent based approach abstract we construct an agent based computational model of the labour market with heterogeneous workers and firms to study the behaviour of the beveridge curve along the business cycle in this framework search frictions arise because filling a vacancy is a costly activity that takes time whereas productivity mismatch comes from firms imperfect information about the value of the workers before the job interview takes place the model offers an interpretation for the outward movement exhibited by the u s beveridge curve since the last months of 2009 sectoral misallocation plays a role moreover when the speed of recovery from a recession is not uniform across sectors unemployed workers are less selective in their application strategy and firms must spend more time in choosing the best match unemployment remains high in spite of an increase in the number of vacancies

job creation and destruction over the business cycle empirical evidence suggests that there is a great deal of turbulence in labour markets in all phases of the business cycle jobs are created and destroyed simultaneously in booms and recessions at significant rates for example using manufacturing data davis and haltiwanger 1990 1992 find that the average rates of job creation and destruction in the u s are 9 2 and 11 3 respectively this clearly indicates that in order to understand the nature of employment dynamics we need theories that include some sort of heterogeneity in the labour market that allows for simultaneous creation and destruction davis and haltiwanger also find that job destruction is countercyclical job creation is procyclical and job destruction is more volatile than job creation any theory of the labour market should be consistent with these basic stylized facts recent theoretical work that has tried to account for these phenomena has typically used the aggregate matching function approach in particular blanchard and diamond 1989 and mortenson and pissarides 1994 construct models in which each firm has one job to offer and the matching function brings together vacancies and searching workers to create jobs in these environments each worker receives a constant fraction of the surplus generated by the match justified by nash bargaining in this paper we take a different modelling approach we model the economy as a set of spatially separated competitive local labour markets that are subjected to idiosyncratic stochastic shocks the model is based on the framework developed by lucas and prescott 1974 in which differences in local conditions cause workers to search across locations we make two key alterations to this model first we introduce aggregate shocks which can be interpreted either as aggregate demand or technology disturbances second we introduce a constant value alternative to working in each location which can be interpreted as waiting time unemployment as in

sectoral shifts and aggregate unemployment additional empirical evidence 1990 sectoral shifts and aggregate unemployment additional empirical evidence applied economics vol 22 no 3 pp 331 346

sectoral shifts and canadian unemployment in this paper lilien s 1982 hypothesis that sectoral shifts in employment raise aggregate unemployment is tested using canadian quarterly data lilien s framework is extended to investigate regional labour market rigidities and to distinguish between industry shifts that are correlated with changes in aggregate activity and those which are exogenous to the overall level of activity the robustness of the results to various changes in model specification is also investigated i find that in canada exogenous shifts in employment between sectors do not have a significant effect on the aggregate unemployment rate this abstract was borrowed from another version of this item

large firms in the production of the world s technology an important case of non globalisation us patenting by 686 of the world s largest manufacturing firms shows that their share of the world s production of technology is less than their share of r d activities and varies greatly amongst sectors in most cases the technological activities of these large firms are concentrated in their home country the characteristics of which influence the volume and trends in their technological activities much more strongly then the international component of these activities at the same time these large firms are major elements in the volume and the pattern of sectoral specializations in their home countries technological activities

regional beveridge curves a latent variable approach dixon r lim g c and freebairn j regional beveridge curves a latent variable approach regional studies this paper applies an unobserved components model to a panel of australian data to identify the direction and timing of the shifts in regional beveridge curves the approach identifies a common factor while allowing for region specific effects the common factor that drives the relationship between regional unemployment and vacancy rates is extracted and it is then related to various explanatory variables the contribution of common shocks to fluctuations in regional unemployment ranges from 18 to 68 the paper demonstrates the usefulness of a latent variable approach and in relation to policy the findings suggest the need for an explicit regional policy to tackle unemployment in australia

defining the government s debt and deficit defining the government s debt and deficit although the budget deficit and the public debt feature prominently in political debate and economic research there is no agreement about how they should be measured they can be defined for different sets of public institutions including the nested sets corresponding to central government general government and the public sector and for any definition of government there are many measures of the debt and deficit including those generated by four kinds of accounts cash financial full accrual and comprehensive which can be derived from four nested sets of assets and liabilities each debt and deficit measure says something about public finances but none tells the whole story each is also vulnerable to manipulation and is likely to be manipulated if it is subject to a binding fiscal rule or target narrow definitions of government encourage the shifting of spending to entities outside the defined perimeter of government narrow definitions of debt and deficit encourage operations involving off balance sheets assets and liabilities while broad measures are susceptible to the mismeasurement of on balance sheet assets and liabilities reviewing the literature on these issues the paper concludes that governments should publish several measures of the debt and deficit in a form that clearly reveals their interrelationships

economic information about ironmaking ironmaking is an important world wide industry iron produced in blast furnaces is a crucial inout for almost three quarters of the steel produced in the world according to the international iron and steel institute few industries have recieved as much attention as the steel industry yet very little is known about the cost structure of ironmaking one of its major inputs this paper attempts to fill that void by the first application of the restricted translog cost function on time series data for the ironmaking plant of one of the world s major steel producers all this information revealed is new for the first time estimates of the elasticities of inout demand for variables inputs and elasticities of substitution are presented major results include the findings that there is more substitution are presented major results include the findings that there is more substitution between variable inputs than was previously thought that disembodies technical change exists and is hicks neutral and that te

sectoral shifts stock market dispersion and unemployment in canada considerable attention has been given in the last ten years to estimation of the importance of sectoral shifts in explaining short term fluctuations in unemployment recent studies have used us stock prices data to develop indexes of sectoral shocks less affected by cyclical influence than lilien s employment dispersion index two indexes of sectoral shifts for canada based on the sectoral dispersion of stock prices growth rates are calculated these indexes are then used in unemployment equations incorporating variables measuring aggregate demand shocks and structural changes in order to assess the importance of sectoral and cyclical shocks in the determination of the canadian unemployment rate the estimation leads to the conclusion that the major recessions of 1981 82 and 1990 91 have been caused by aggregate demand shocks however both types of shocks contributed to the 1974 75 recession while the mild recession of 1980 was accompanied by an important sectoral shock estimations also show that the mo

diaspora ownership and international technology licensing by emerging market firms abstract the liability of origin makes participation in international technology licensing challenging for emerging market firms we draw on signaling theory to propose that diaspora ownership diaspora members equity investments in their homeland firms constitutes a reliable third party signal of emerging market firms trustworthiness which facilitates the access of these firms to international technology licensing we further hypothesize that the efficacy of diaspora ownership as a third party signal varies with the firm s subnational context specifically the relevance of diaspora ownership signal increases with the degree of homogeneity of the within industry r d effort in the firm s sub national location this is because under these conditions additional signals are required to differentiate between local firms operating in the same industry in contrast the diaspora ownership signal has a smaller effect in dysfunctional institutional contexts due to their prohibitive transaction costs we test our arguments on a matched sample of 597 indian firms operating between 2006 and 2015 and find general support for the predicted relationships our study advances research on the liability of origin of emerging market firms the work on subnational dimension of international business and the literature on the benefits diasporans bring to their homelands and resident countries