fiscal policy expectation traps and child labor i introduction child labor is widespread in the contemporary world in fact the international labor organization ilo estimates that 246 million of the world s children aged 5 17 or 16 are child laborers most living in developing countries 1 recently there has been renewed interest in this topic among economists which has led to a series of theoretical studies with the aim of better understanding the causes and consequences of child labor in order to help guide appropriate policy responses as in grootaert and kanbur 1995 basu 1999 and basu and tzannatos 2003 for useful literature surveys typically theoretical models designed to address the important policy issues surrounding child labor posit that a family s decision to send a child to the labor market is taken only as a last resort in order to escape the dire consequences of poverty for example basu and van 1998 baland and robinson 2000 show that this response on the part of the family may be stronger in a dynamic setting because contracts between children and adults are not self enforcing and capital markets are incomplete 2 in this case an adult decision maker may not only send their children to work to escape poverty in the present but do so to escape poverty in the future as well this decision will hinder a child s ability to accumulate human capital and can lead to persistent cycles of poverty and child labor across generations 3 we begin by showing that a benevolent government can address the incidence of child labor that results from the non enforceability of intergenerational contracts and incomplete capital markets through the appropriate use of fiscal policy and that this policy is pareto improving it is then shown that if society s confidence in their government is incomplete this lack of confidence can render the same fiscal policy ineffective in other words if households do not believe that the government will follow through on their policy promise then in fact it is quite possible that the government will not be able to follow through on their promise as a result of these beliefs 4 this self reinforcing nature of fiscal policy in the presence of uncertainty can leave a country in an expectations trap with a low level of human capital and child labor 5 to formally demonstrate this fiscal policy expectations trap hypothesis we employ a three period overlapping generations model in which child labor exists 6 this stylized setup will keep the dynamics manageable and allow us to highlight the effects of uncertainty also within this framework we introduce a missing intergenerational contracts market in conjunction with a human capital production function that exhibits a threshold with respect to parental human capital which gives rise to two locally stable steady states there is a good equilibrium where there is a relatively high level of parental human capital which results in a high level of income and no child labor and there is a bad equilibrium where there is a relatively low level of parental human capital which results in a low level of income and positive child labor this low income child labor equilibrium is the standard poverty trap scenario that typically exists in a deterministic economy with multiple equilibria it is then shown that a benevolent government can replicate the missing intergenerational contracts market with a pay as you go social security program thereby eliminating this component of child labor in an economy with perfect foresight in addition it is also shown that this policy is pareto improving in the sense that all generations are strictly better off under this policy except the initial old who are no worse off the dynamics of this social security program are intuitive if child labor is one possible mechanism adults can use to redistribute resources from their children then the government can reduce this incentive by announcing a social security program that will begin during the current adults old age an institutional intergenerational contract

voluntary governance mechanisms in global supply chains beyond csr to a stakeholder utility perspective poor working conditions remain a serious problem in supplier facilities in developing countries while previous research has explored this from the developed buyers side we examine this phenomenon from the perspective of developing countries suppliers and subcontractors utilizing qualitative data from a major knitwear exporting cluster in india and a stakeholder management lens we develop a framework that shows how the assumptions of conventional buyer driven voluntary governance break down in the dilution of buyer power and in the web of factors rooted in suppliers traditions beliefs local demands and resource dependency we reveal out how success in governing collaborative global supply chains often falls short within the subcontracting stage where a stakeholder management mindset is elusive to most participants we suggest that success in governing collaborative global supply chains is dependent on concepts of stakeholder utility and the presence of shared value that is often at odds with the realities of power information asymmetry and compliance reward systems inherent in the non market coordination of global supply chains our findings offer important insights for delineating the concepts of value creation from csr concepts and practices and for modifying the basic assumptions of conventional supply chain governance

is the stock market sticker shocked a study of market response to recent cafe regulations in the us in response to increasing environmental concerns to improve energy security and to conserve energy use the us government has proposed a new round of corporate average fuel economy cafe standards many studies have focused on how the cafe standard can be met by various automakers that have sales in the us market and the costs and benefits of the companies meeting the standard however the stock markets view on the impact of the standard on automakers profitability is largely absent we study the more recent episode of the cafe regulation in an effort to try to detect the market response using the standard event study method our empirical findings suggest that while the stock market had some responses to the regulation the large scale and systematic reaction to the regulation is absent in addition the market response pattern to the regulation appears to be tied to the individual company s compliance condition if there is any significant response at all

the formation of cross sector development partnerships how bridging agents shape project agendas and longer term alliances cross sector development partnerships csdps are project based collaborative arrangements between business government and civil society organizations in support of international development goals such as sustainability health education and economic development focusing on public private partnerships in development cooperation we examine different constellations of bridging agents and their effects in the formation of single csdp projects and longer term alliances we conceptualize bridging agency as a collective process involving both internal partner representatives and external intermediaries in initiating and or supporting roles we find that the involvement of external intermediaries eases the formation of single projects and longer term alliances however when projects are initiated by external intermediaries they tend to be repetitive and narrow in scope whereas projects initiated by internal partner representatives often explore novel agendas and embody a greater potential for social innovation yet the longer term pursuit of these agendas beyond single projects may require external intermediaries in supporting roles findings help better understand micro processes and collective practices of brokerage and alliance formation in transnational governance contexts and beyond

strikes free riders and social customs in recent years there has been a growing literature on the role of social customs in the labour market marsden 1986 for example has emphasised the importance of group norms and social custom in various labour market contexts jones 1984 develops an economic model of conformist behaviour in which an individual s work effort is determined partly by tradition and by the behaviour of other workers a central theme of the literature is that a rational economic agent does not inhabit a social vacuum and hence that individual behaviour is influenced to some extent by the actions of others the approach promises the possibility of an escape from the free riders problem which as we shall investigate might have a number of labour market applications such a potential has been suggested by a number of writers in different fields eiser 1978 writing from a socio psychological perspective has stressed the role of social norms in producing cooperative outcomes in the theoretical context of the prisoner s dilemma such an emphasis is consistent with sen s 1977 argument that the concept of commitment might offer a solution to the free rider problems

the association between vertical equity and presidential voting behavior and taxpayers compliance since taking office the president of the united states has consistently refused to make his tax returns available for public scrutiny in so doing he has broken with presidential tradition and kept people guessing about what his tax returns would show if they were disclosed interestingly enough in the absence of concrete knowledge about the president s tax circumstances some taxpayers perceive that he did not pay his fair share and others perceive that he did this situation presents an opportunity for us to consider how vertical equity perceptions about the president s fair share of taxes and identification with the president via voting behavior are jointly associated with taxpayers compliance using insights from equity theory as reported in adams in berkowitz ed advances in experimental social psychology academic press new york 1965 and social learning theory as reported in bandura social learning theory general learning press new york 1971 social learning theory prentice hall englewood cliffs 1977 we anticipate and find that those taxpayers who perceive that the president did not pay his fair share of taxes and who most closely socially identify with him have the lowest tax compliance we use a survey of 600 american taxpayers to capture their perceptions of vertical equity voting behavior and tax compliance intentions our results may reflect that taxpayers who identify with the president will tend to model his tax related actions or may also indicate that some taxpayers vote for a president whose actions are similar to their own insights and implications for ethics and tax researchers and tax policy makers are discussed

public versus private investment in human capital endogenous growth and income inequality in this paper we present an overlapping generations model with heterogeneous agents in which human capital investment through formal schooling is the engine of growth we use simple functional forms for preferences technologies and income distribution to highlight the distinction between economies with public education and those with private education we find that income inequality declines more quickly under public education on the other hand private education yields greater per capita incomes unless the initial income inequality is sufficiently high we also find that societies will choose public education if a majority of agents have incomes below average

do ethics matter tax compliance and morality in this article we argue that puzzle of tax compliance can be explained at least in part by recognizing the typically neglected role of ethics in individual behavior that is individuals do not always behave as the selfish rational self interested individuals portrayed in the standard neoclassical paradigm but rather are often motivated by many other factors that have as their main foundation some aspects of ethics we argue that it is not possible to understand fully an individual s compliance decisions without considering in some form these ethical dimensions specifically we argue here that there is much direct and indirect evidence that ethics differ across individuals and that these differences matter in significant ways for their compliance decisions we then put this in the larger context of the inability of the standard neoclassical paradigm to explain compliance of at least some individuals and we suggest several possible avenues by which theory can be expanded to incorporate ethics we conclude by arguing that a full house of compliance strategies is needed to combat tax evasion strategies that include the traditional enforcement paradigm suggested by and consistent with neoclassical theory a less traditional service paradigm that recognizes the important role of a kinder and gentler tax administration in encouraging compliance and importantly a new trust paradigm that is built on the foundation of ethics in which the tax administration must recognize that it can erode the ethics of taxpayers by its own decisions

a defense of compulsive measures against child labor abstract this research characterizes policies likely to trigger the onset of a growth enhancing fertility transition even for an economy with initially a low per capita income the environment considered is one where children s time has an economic value and schooling and child labor are the main competing claims on a child s time using a one parent family overlapping generations model i argue that compulsive measures against child labor are justifiable as an integral part of an intervention that combines incentives and regulations in order to eliminate child labor the analysis highlights fertility and child labor dynamics as shaped by the relative cost of children

poverty traps and human capital accumulation in this paper i show that persistent inequality in the distribution of human capital and a negative relation between initial inequality and steady state aggregate output may follow from the fact that the poor require relatively higher returns to increase expenditure on education moreover i show that poverty traps emerging in models where individual transitions do not depend on aggregate dynamics though not robust to the introduction of idiosyncratic uncertainty may still be relevant observationally if idiosyncratic shocks occur with low probability in this context i also analyse the implications of introducing a public education system

inflation and tax evasion an empirical analysis this paper contains an analysis of the effect of inflation on aggregate tax evasion in the united states over the period 1947 81 it is found that tax evasion in both absolute and relative terms is positively related to the inflation rate further the results indicate that aggregate evasion has risen in both absolute and relative terms with increases in the marginal tax rate but has fallen with increases in the detection probability the penalty rate and the wage share of income finally evasion has risen in absolute terms but has fallen in relative terms when real true income has risen

a population macroeconomic growth model for currently developing countries abstract this paper constructs a theoretical model that predicts as observed in some currently developing countries that the average school enrollment ratio may fall even when the average fertility rate declines unlike existing models the current analysis indicates that economic growth may slow down when a fertility transition starts asymmetric behavior with respect to fertility and education between households stemming from income inequality plays an important role in generating this result we examine the implications of an education subsidy policy contrary to intuition in some circumstances this policy may decrease the average school enrollment ratio and future economic growth

from the lab to the field a review of tax experiments tax experiments have been gaining momentum in recent years although this literature dates back several decades with new developments in methods and data availability tax experiments have gradually moved away from lab settings and towards the field this movement from the lab to the field has happened against the background of the credibility revolution in applied economics which has seen more rigorous methods applied to policy relevant questions and of the availability to researchers of administrative data from tax returns these developments have allowed significant advances in the experimental literature on tax compliance this paper reviews this literature giving particular attention to field experiments using administrative data but putting them in the broader context of the compliance literature a particular effort is made to take a global perspective in a literature that is only recently seeing the emergence of evidence from africa latin america and asia

social accountability 8000 standard certification analysis of worldwide diffusion abstract this study analyzes the worldwide diffusion of the social accountability 8000 standard certification in sixty five countries and sixty six activity sectors from 1999 to 2011 the logistic curve model is used to assess the current situation on both a global scale and a local scale additionally instability and concentration indices are used to analyze whether the diffusion process developed in a homogeneous manner across countries and economic sectors the results i increase the understanding of sa8000 s diffusion ii provide an exploratory descriptive analysis of the current sa8000 diffusion worldwide in both macro and microanalyses compared with other standards and iii identify future trends in sa8000 diffusion concluding that currently sa8000 follows a similar pattern than other standards and in consequence a growing trend is expected in next years these findings suggest some challenges and opportunities the standard must be more flexible to accommodate the differing perspectives of cultures increase the dialogue with stakeholders and include more small companies from developing countries

multinationality and corporate ethics codes of conduct in the sporting goods industry the international operations of firms have substantial impact on the formulation and implementation of business ethical principles such as codes of conduct the international sporting goods industry has been a pioneer in setting up codes and thus provides much relevant experience different sourcing strategies degrees of multinationality and national backgrounds affect the contents of codes moreover international non governmental organizations prove equally effective in triggering sophisticated codes

offsetting behavior effects of the corporate average fuel economy standards john m yun 1 introduction consumers value many attributes of an automobile the problem for regulators is that many features are highly interrelated such as safety and fuel economy improvements both features are highly correlated with vehicle weight greater weight increases the level of safety in terms of crashworthiness but decreases the fuel economy therefore regulatory attempts to improve fuel economy such as the corporate average fuel economy cafe standards 1 are likely to alter average vehicle weight which will alter the safety of a vehicle crandall and graham 1989 find the reduction in weight attributable to cafe results in a 14 28 increase in occupant fatality risk this article seeks to determine whether drivers are changing their behavior to mitigate the detrimental safety effects of cafe which is essentially another application of peltzman s 1975 offsetting behavior hypothesis cafe through a reduction in passenger car weight will increase the ex ante cost of risky driving 2 relative to its expected benefit the reason is that once an accident occurs the probability of serious injury or death has increased the offsetting behavior hypothesis is that consumers aware of the increased vulnerability will exercise greater due care and reduce the amount of risky driving on the road as a result of cafe however cafe has not just affected the average passenger car weight godek 1997 and yun 1999 indicate that cafe has positively affected the relative sales of light trucks 3 to passenger cars if we assume that light trucks are basically heavy cars with greater visibility the same arguments made for offsetting behavior on the part of passenger car drivers can be applied here 4 the main difference is that truck drivers will be more aggressive and risky because trucks are heavier which lowers the cost of risky driving thus if cafe induces more trucks to be on the road according to the offsetting behavior hypothesis cafe will increase the amount of aggressive truck driving while simultaneously decreasing the amount of aggressive car driving although the article will focus on the offsetting behavior from changes in passenger car weight it is just as relevant for changes in relative truck miles driven section ii reviews the recent research linking automobile weight changes with cafe and recent empirical studies that apply offsetting behavior to automobile regulations 5 section iii details the methodology used to test the offsetting behavior hypothesis section iv contains a discussion of the data the results are reported in section v and section vi concludes the article ii background the cafe standards were initially set at 18 0 mpg for passenger cars and between 15 8 to 17 2 mpg for various light trucks these standards have steadily increased to the current levels of 27 5 mpg for passenger cars and 20 7 mpg for light trucks 6 the key impact of cafe on consumer safety is a reduction in the average passenger car weight figure 1 illustrates the fall in weight since cafe s passage in 1975 crandall and graham 1989 attribute 14 of the fall in weight to cafe 7 using single car accident data they estimate the elasticity of highway occupant fatality rates with respect to average car weight is between 1 22 and 2 30 which implies a 17 32 2 increase in the fatality rate due to cafe using the upper and lower bounds crandall and graham 1989 estimate that cafe is responsible for 2 200 3 900 more deaths over the life span of the cars from a given model year 8 however there is no attempt to explicitly measure possible offsetting behavior effects not all studies find a positive relationship between weight and safety the general accounting office gao 1991 acknowledges a theoretical link between automobile size and safety however they find no direct empirical link between the two

culture compliance and confidentiality taxpayer behavior in the united states and italy the experimental economics center and the department of economics of the andrew young school of policy studies georgia state university atlanta ga and the center for experimental economics at fondazione university ca foscari italy

bribing votes a new explanation to the inequality redistribution puzzle in ldc s the recent empirical literature on redistribution and developmentemphasizes two main evidences i more redistribution generallyinduces higher growth rates and ii more inequality does notnecessarily increase the political demand for redistribution these stylized facts are at odds with the correlations observedin developed countries several theoretical arguments can beadvanced to explain these puzzles in this paper it is shownthat vote purchases may be seen as an additional argument toexplain puzzle ii we formalize this idea and examine theconditions under which vote bribes may be an obstacle toredistribution and thus to growth in a developing economy

the politics of code enforcement and implementation in vietnam s apparel and footwear factories summary what happens when transnational private regulation of labor standards is put into practice on the factory floor this article addresses this question with field research data on vietnam s apparel and footwear industries the vietnamese case shows that code enforcement and implementation are highly political processes fraught with conflicts and attempts at evasion the consequences moreover contradict the conventional wisdom of low regulatory effectiveness heightened legal awareness and strengthened labor law enforcement may result from these processes this study illustrates two mechanisms conflict and ritualistic compliance that can raise the effectiveness of private regulation

car buyers and fuel economy abstract this research is designed to help researchers and policy makers ground their work in the reality of how us consumers are thinking and behaving with respect to automotive fuel economy our data are from semi structured interviews with 57 households across nine lifestyle sectors we found no household that analyzed their fuel costs in a systematic way in their automobile or gasoline purchases almost none of these households track gasoline costs over time or consider them explicitly in household budgets these households may know the cost of their last tank of gasoline and the unit price of gasoline on that day but this accurate information is rapidly forgotten and replaced by typical information one effect of this lack of knowledge and information is that when consumers buy a vehicle they do not have the basic building blocks of knowledge assumed by the model of economically rational decision making and they make large errors estimating gasoline costs and savings over time moreover we find that consumer value for fuel economy is not only about private cost savings fuel economy can be a symbolic value as well for example among drivers who view resource conservation or thrift as important values to communicate consumers also assign non monetary meaning to fuel prices for example seeing rising prices as evidence of conspiracy this research suggests that consumer responses to fuel economy technology and changes in fuel prices are more complex than economic assumptions suggest the us department of energy and the energy foundation supported this research the authors are solely responsible for the content and conclusions presented

ethical sourcing codes of large uk based corporations prevalence content limitations codes of conduct have become the perhaps most often used tool to manage corporate social responsibility csr researchers have primarily analysed such documents at company wide or trans company levels whereas there is a dearth of studies into the use of codes for particular corporate functions hence this article will examine one particular group of sub company level codes namely codes of conduct that stipulate csr criteria for suppliers examining such ethical sourcing policies adopted by the ftse100 corporations the article draws out what environmental social and economic issues large corporations perceive to be important in the management of their supply chains at an aggregate level the coverage of csr issues is rather extensive yet at the level of the individual corporation a degree of selectivity in the issues that are addressed becomes noticeable the code content analysis furthermore confirms the business case and public pressure to be the most important drivers of csr finally the study highlights the role of isomorphic processes in the adoption of csr tools

corruption fertility and human capital abstract we build an overlapping generations model in which reproductive households face a child quantity child quality trade off and bureaucrats are delegated with the task of delivering public services that support the accumulation of human capital by integrating the theoretical analyses of endogenous growth corruption and fertility choices we show that the negative relation between fertility and economic development may also be affected by differences in the magnitude of bureaucratic corruption

child labor school attendance and intrahousehold gender bias in brazil an extensive survey data set of brazilian households is used to test whether intrahousehold gender bias affects the decisions of mothers and fathers to send their sons and daughters to work and to school an intrahousehold allocation model is examined in which fathers and mothers may affect the education investment and the child labor participation of their sons and daughters differently because of differences in parental preferences or differences in how additional schooling affects son s and daughter s acquisition of human capital brazilian household survey data for 1998 are used to estimate the impact of each parent s education on the labor market participation and school attendance of their sons and daughters for labor market participation the father s education has a greater negative impact than the mother s education on the labor status of sons the father s education also has a greater impact on son s labor status than on daughter s for schooling decisions the mother s education has a greater positive impact than the father s education on daughter s school attendance but fathers have a greater positive impact on sons school attendance than on daughter s

do you need a receipt exploring consumer participation in consumption tax evasion as an ethical dilemma the paper focuses on the consumer side of consumption tax evasion cte a subcategory of the shadow economy the ethical dimensions of tax evasion have been effectively captured by the existent literature on tax morale yet it fails to address the role consumers can play in cte further there is a shortage of tax morale studies that explore ethical decision making as a process composed of multiple steps and determinants to bridge these gaps we turned to the consumer ethics literature and jones issue contingent model of ethical decision making we developed the conceptual model of consumer ethical decision making for cte by incorporating four key elements from the issue contingent model i e moral recognition moral judgement moral intention and moral intensity while personal moral philosophies were introduced as an antecedent to the consumer ethical decision making process the study was conducted on a sample of consumers from slovenia where cte is a widespread phenomenon the findings confirm that consumers recognition of cte as a moral issue is influenced by their moral philosophy and perceptions regarding the magnitude of cte s consequences their visibility probability and temporal immediacy these perceptions also play an important role in determining consumers moral judgements and intentions regarding cte moreover through the process of moral recognition and moral judgement consumers form intentions to participate in or avoid cte the study holds important implications for public policy makers who are trying to reduce the tax gap in times of economic instability and fiscal crisis

paying tax is part of life social norms and social influence in tax communications abstract a number of studies on taxpayer interaction from large scale surveys to field experiments reveal that people s tax compliance attitudes and behavior change after they discuss tax with other taxpayers however we know very little about the content of these communications and the processes by which they produce changes in tax compliance to address this knowledge gap we employed an in depth analysis of naturally occurring online discussions about income tax among software developers using a discourse analytic framework we report an empirical analysis of 120 online interactions between taxpayers providing a categorization of these interactions interactions ranged from asking for information about tax regulations and receiving such information to a variety of interactions aimed at persuading defiant individuals to comply with tax laws these persuasion techniques varied from stating the benefits of compliance to threats of severe economic and reputational consequences overall this study is the first in depth empirical investigation of social influence processes in taxpayer communication we discuss how the results inform research into social norms and tax compliance tax communication in social networks and persuasive messaging in tax compliance campaigns

individual morality and reputation costs as deterrents to tax evasion abstract empirical evidence suggests some taxpayers never evade evasion increases with the tax rate and evasion decisions are interdependent these findings are not easily explained by the existing theory which models evasion as an independently made amoral gamble this paper uses nonpecuniary costs of evasion to reconcile theory with evidence once individuals are assumed to differ by an honesty characteristic taxpayers dichotomise into groups the more honest of which responds to a tax change as the evidence suggests a further extension is to introduce an endogenous reputation cost this suggests a positive relationship between the number of evaders and the tax rate

sizing the government is there such a thing as an optimal government size we investigate the so called armey curve which claims an inverted u shaped relationship between government size and economic performance using non parametric data envelopment analysis dea the dea scores are linked to control variables such as initial per capita income openness population density urbanization country size and family size for 23 oecd countries we estimate the country specific efficiency scores which reveal the extent to which a country uses excess public resources to achieve the observed growth rate of gdp

tax morale affects tax compliance evidence from surveys and an artefactual field experiment our working hypothesis is that cross cultural differences in tax compliance behavior have foundations in the institutions of tax administration and citizen assessment of the quality of governance tax compliance being a complex behavioral issue its investigation requires use of a variety of methods and data sources results from artefactual field experiments conducted in countries with substantially different political histories and records of governance quality demonstrate that observed differences in tax compliance levels persist over alternative levels of enforcement the experimental results are shown to be robust by replicating them for the same countries using survey response measures of tax compliance

the use of field experiments to increase tax compliance governments have become increasingly interested in the explosion of research into taxpayer behaviour this article briefly reviews two main theories of tax compliance deterrence and non deterrence before discussing the recent rapid rise of natural field experiments nfes in this area these nfes represent a win win for policy makers and academics since they can test theories while also evaluating the impact of a specific intervention in the real world the evidence from nfes shows that deterrence approaches improve compliance while the case for non deterrence approaches is less conclusive at the moment nfes could be improved by paying more attention to findings from behavioural science that apparently incidental factors such as timing framing and complexity substantially affect whether compliance occurs or not new directions for future studies include network effects tax payments in addition to declarations the behaviour of firms the provision of public goods and the relationship between attitudes and behaviour

child labor cause consequence and cure with remarks on international labor standards although the literature on child labor is enormous it lacks a common theoretical foundation in this paper analytical survey of this field is provided keeping in mind that this is an area where the primary reason for theorizing is ultimately to influence policy overall it is noted that the literature on child labor is an illustration of abundance and anarchy although empirical writings on child labor are numerous they are not usually founded on theory it is argued that there is much that can be done in curbing the issue of child labor several theories were studied in this paper including collaborative intervention such efforts include public action which alters the economic environment such that the parents of their own accord prefer to withdraw the child from labor force another strategy involves the government a legal intervention is enforcing a total ban on the subject although such interventions have good intentions some of them may not be feasible in general it is better to take economy wide measures against child labor and if there is to be a sector specific ban it should be based on the working conditions of that sector rather than the destination of the goods

do codes of conduct improve worker rights in supply chains a study of fair wear foundation the rise of private regulation of sustainability in global production networks has led to intensive debates about the impact of this regulation at the point of production yet few empirical studies have systematically examined this impact in practice based on multiple factory audits of 43 garment factories conducted by the multi stakeholder initiative fair wear foundation we show that codes of conduct improve although marginally worker rights on an overall level but that few significant results are found for specific worker rights our findings also lend support to the widespread argument that codes have uneven impact furthermore we show that even rigorous multi stakeholder factory audits seldom are able to identify process rights violations such as those affecting freedom of association and discrimination and that auditing is thus is more fundamentally flawed than assumed in previous research given companies extensive investments in private regulation of worker rights the findings have important implications for both scholars and managers

taxpayer response to an increased probability of audit evidence from a controlled experiment in minnesota abstract in 1995 a group of 1724 randomly selected minnesota taxpayers was informed by letter that the returns they were about to file would be closely examined compared to a control group that did not receive this letter low and middle income taxpayers in the treatment group on average increased tax payments compared to the previous year which we interpret as indicating the presence of noncompliance the effect was much stronger for those with more opportunity to evade in fact the difference in differences is not statistically significant for those who do not have self employment or farm income and do not pay estimated tax surprisingly however the reported tax liability of the high income treatment group fell sharply relative to the control group

why is child labor illegal abstract we present a theory of the emergence of laws restricting child labor or imposing mandatory education that is consistent with the fact that poor parents tend to oppose such laws we find that if altruistic parents are unable to commit to educating their children child labor laws can increase the welfare of higher income parents in an ex ante sense on the basis of an empirical analysis of latin american household surveys we demonstrate that per capita income in the country of residence has the predicted effect on child labor supply even after controlling for other household characteristics

an economic model of welfare stigma perhaps the most basic assumption of the economic theory of consumer demand is that more is better than less virtually all of the major propositions of consumer theory can in a certain sense be derived from the assumption that goods are good interestingly however this tenet seems to be violated by the behavior of many individuals in the low income population for many turn out to be eligible for a positive welfare benefit but do not in fact join the welfare rolls for example it has been estimated that in 1970 only about 69 percent of the families eligible for afdc aid to families with dependent children participated in the program see richard michel 1980 the corresponding percentage for afdc u the program for which families with an unemployed male are eligible was only 43 percent and the participation rate in the food stamp program was only 38 percent see maurice mcdonald 1977 this phenomenon has puzzled many investigators because such individuals do not locate on the boundaries of their budget sets consequently most investigators ignore the problem when studying the effects of welfare programs on behavior in this paper this seemingly irrational rejection of an increase in income is modeled as resulting from welfare stigma that is from disutility arising from participation in a welfare program per se 1 the existence of stigma has been amply documented in the sociological literature patrick horan and patricia austin 1974 lee rainwater 1979 where interviews of recipients have often uncovered feelings of lack of self respect and negative self characterizations from participation in welfare nevertheless this phenomenon has not been modeled and many questions consequently remain when is the disutility of participation strong enough to prevent participation shouldn t we expect individuals to weigh the disutility of participation against the potential benefit in their decisions what is the elasticity of participation with respect to the potential benefit also in a slightly different vein how are the work disincentives of welfare affected by stigma these questions have been given scant attention by economists yet they are crucial for our ability to predict the impact of various welfare programs on the lowincome population here these questions are addressed by modeling nonparticipation as a utility maximizing decision the model is developed and estimated for the afdc program 2 the model posits an individual utility function containing not just disposable income but

income distribution and equilibrium multiplicity in a stigma based model of tax evasion abstract this paper incorporates continuous income distribution into the stigma based model of tax compliance the paper investigates the effect of income distribution on the existence of multiple equilibria and characterizes the conditions under which multiple equilibria emerge precisely multiple equilibria exist if taxpayer incomes are sufficiently homogeneous because the social coordination effect dominates the individual characteristics effect numerical simulations show that the main proposition is robust to allowing two step audit policies on the part of the tax agency under the presumption that the best or good equilibrium is selected whenever there are multiple equilibria as a byproduct the effect of various forms of tax reforms on the optimal two step audit policy the equilibrium compliance and fiscal revenue is analyzed

stakeholder forces of socially responsible supply chain management orientation this project investigates salient stakeholder forces of socially responsible supply chain orientation srsco in the apparel and footwear sector focusing on fair labor management issues srsco was conceptualized as a composite of internal organizational direction and external partnership for a creation and continuation of fair labor conditions throughout the supply chain primary stakeholders identified were consumers regulation industry and media a total of 209 mail survey responses from sourcing managers of u s apparel and footwear companies were analyzed two dimensions of srsco were confirmed internal direction and external partnership consumer and industry peer pressures were found significantly related to internal direction while industry peers and media were significantly related to the external partnership regulation was not significantly related to either internal direction or external partnerships lack of regulation forces to govern labor issues and roles of consumers industry peers and media in promoting fair labor management are discussed in this article

revisiting supplier compliance with mnc codes of conduct recoupling policy and practice at chinese toy suppliers does private regulation of workers rights in global value chains improve working conditions on the factory floor drawing on one of the first systematic longitudinal studies of supplier compliance with multinational corporation mnc codes of conduct this paper finds in contrast to previous research substantial improvements over time while in 2004 the four examined chinese toy suppliers violated most of the evaluated code of conduct criteria and consciously decoupled the code of conduct policy from actual practices by 2009 they had recoupled policy and practice and complied with nearly all examined criteria except working hours the paper contributes to the private regulation literature by challenging previous research claims identifying factors that could make private regulation effective and outlining a research method for empirically studying the effects of codes of conduct over time the paper also contributes to new institutional theory by discussing how recoupling could be influenced by two factors not identified in previous research i trusting relationships between the organization and the stakeholder exerting pressure and ii factors unrelated to main external pressures leading to accidental recoupling

shadow economies size causes and consequences using various methods the size of the shadow economy in 76 developing transition and oecd countries is estimated average size varies from 12 percent of gdp for oecd countries to 23 percent for transition countries and 39 percent for developing countries increasing taxation and social security contributions combined with rising state regulations are driving forces for the increase of the shadow economy especially in oecd countries according to some findings corruption has a positive impact on the size of the shadow economy and a growing shadow economy has a negative effect on official gdp growth

understanding welfare stigma taxpayer resentment and statistical discrimination abstract welfare stigma is widely regarded to be of central importance in understanding the impact of welfare programs in their goal of alleviating poverty it affects both the decision to take up benefits and the well being of those who actually do this paper develops alternative models of the determinants of welfare stigma we identify two views a statistical discrimination approach and a taxpayer resentment view we discuss how each may be formalized and derive their implications we then examine what they imply about the relationship between stigma and program design

aging growth and the allocation of public expenditures on health and education in this paper i develop an overlapping generations endogenous growth model in which both public education and health are sources of growth by affecting the accumulation rate of the human capital stock and the savings rate over life expectancy i first find that dynamic complementarities of public expenditures lead to minimum threshold levels of public education and health expenditures that ensure sustainable growth i then show how governments can use the allocation of public expenditures as an alternative policy instrument to maximize growth without increasing the tax rate or the retirement age as usually happens in aging economies resume vieillissement croissance et l allocation des depenses publiques en sante et en education dans ce texte l auteur developpe un modele de croissance endogene avec des generations qui se chevauchent dans lequel les services publics en sante et en education sont des sources de croissance en raison du fait qu ils affectent le taux d accumulation du stock de capital humain et le taux d epargne au cours du cycle de vie on decouvre que les complementarites dynamiques des depenses publiques determinent des seuils minimaux de depenses publiques en sante et en education qui assurent une croissance durable on montre comment les gouvernements peuvent utiliser l allocation des depenses publiques comme un instrument de politique publique de rechange pour maximiser la croissance sans accroitre le taux d imposition ou l ge de la retraite comme cela se fait d habitude dans les economies vieillissantes

a theory of the worst forms of child labour although intuitive and morally compelling a ban on the worst forms of child labour in poor countries is unlikely to be welfare improving we show that harmful forms of child labour have an economic role by maintaining wages for child labour high enough they allow human capital accumulation in poor countries unless appropriate mechanisms are designed to mitigate the decline in child labour wages caused by reduced employment options for children a ban on harmful forms of child labour will likely prove undesirable we perform our analysis within a simple model of parental investment in children s education

commitment to pay taxes results from field and laboratory experiments abstract a tax authority s ability to successfully collect taxes depends on its relationship with the taxpayers as well as their commitment to contribute to the common good in this paper we examine the effect of promises on tax compliance aimed at fostering taxpayer commitment first in a field experiment we investigate whether tax compliance changes when taxpayers make a formal promise to pay their taxes on time with compliance rewarded by entry into a lottery for either a financial or nonfinancial in kind reward we then complement this analysis with a laboratory experiment in which we measure the effect of promises in the different compliance domain of tax honesty and contrast the effect of a pure promise to pay with schemes that pair the promise with a reward offer we find that taxpayers with a history of compliance or high scores on tax morale are more likely to make the promise but solely offering the possibility to make a promise does not lead to a change in compliance behavior whether or not compliance improves depends on the type of reward to which the promise is linked in our experimental analyses for example compliance only increases if the reward for promise fulfillment is nonfinancial

the sa8000 social certification standard literature review and theory based research agenda social accountability 8000 sa8000 was one of the first auditable social standards aimed at promoting labor rights for workers around the world this certification is currently considered the most important in the field of corporate social responsibility csr after approximately 15 years of research on sa8000 we provide the first literature review on this topic we analyze 56 scientific papers that address key issues concerning sa8000 including the advantages of the adoption of the ethical certification and the obstacles to adoption and management and provide a comparison with iso 9001 and iso 14001 standards and with other csr standards and codes of conduct papers are coded following a deductive inductive approach and classified by year of publication publication outlet research focus methodology underpinning theory if any unit of analysis sample size industry and country building on literature findings we identify various research gaps stemming from the scarcity of empirical research and the weakness of theoretical foundations in particular we highlight the lack of evidence on the impact of organizational level factors on the adoption of the standard on the extent of the trade off if any between positive and negative outcomes of sa8000 and the failure to identify moderators of the relation between antecedents and sa8000 adoption and or between adoption and outcomes finally we propose a theory based research agenda on sa8000 for om scholars based on transaction cost economics agency and neo institutional theories and focused on three classes of relevant problems governance structure under sa8000 risk sharing between buyers and suppliers and effects on operational performance

parental choice of human capital investment abstract in this paper we present a model in which parents make schooling decisions for their children we compare two educational regimes public and private education in the private education regime all human capital investment decisions are made by individuals under public education the government uses income tax revenue to finance one input to schooling in the private education regime cycles may occur even though there are constant returns to scale in the augmentable factors in the public education regime there are no cycles but poverty traps may occur

tax evasion and capital gains taxation this paper uses time series data to investigate how changes in capital gains tax rates affect taxpayer compliance it finds that a one percent increase in the marginal tax rate reduces voluntary compliance by between one half and one percent these results confirm the findings of previous studies based on individual household data they also suggest that at least one quarter of the observed capital gain realization response to changes in marginal tax rates is due to changes in reporting behavior rather than portfolio behavior this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item

effects of supervision on tax compliance evidence from a field experiment in austria we conduct a field experiment on tax compliance focusing on newly founded firms as a novelty the effect of tax authorities supervision on timely tax payments is examined interestingly results show no positive overall effect of close supervision on tax compliance

on the distributional consequences of child labor legislation this article studies the effects of child labor legislation on human capital accumulation and the distribution of wealth and welfare we calibrate our model to u s data circa 1880 and find that the consequences of restricting child labor or providing tax financed education depend on the main source of individual household income households with significant financial assets unambiguously lose from government intervention whereas high wage workers benefit most from a child labor ban and low wage workers benefit most from free education introducing free education results in substantial welfare gains whereas a child labor ban induces small welfare losses

global private regulation and value chain restructuring in indonesian smallholder coffee systems summary consumer concerns over the environmental and social conditions of coffee production have led to the proliferation of sustainability codes certification schemes and labeling claims in the sector this paper addresses how the global private regulation of ethical and environmental standards is having several implications for value chain structures and institutions in the smallholder coffee systems of indonesia global private regulation is driving structural changes in modes of farmer organization trader farmer relationships and is resulting in the increased upstream penetration of multinational trading companies into coffee producing areas across indonesia an unintended consequence of these changes in the future may be to increase transaction costs along the value chain and to exert an overall downward pressure on farm gate prices

how corruption may corrupt abstract the incidence of corruption appears to vary strongly across societies even for comparable activities the model highlights how the profitability of bureaucratic corruption may be related to its frequency and points toward a few mechanisms that can be used in explaining the stylized facts of varying incidence of corruption there might be multiple self fulfilling equilibria levels of corruption even when both supply and demand of corrupt acts are considered

corruption tax evasion and social values we provide a theoretical explanation for the vicious circle of political corruption and tax evasion in which countries often fall into we address this issue in the context of a model with two distinct groups of agents citizens and politicians citizens decide the fraction of their income for which they evade taxes politicians decide the fraction of the public budget that they peculate we show that multiple self fulfilling equilibria with different levels of corruption can emerge based on the existence of strategic complementarities indicating that corruption may corrupt furthermore we find that standard deterrence policies cannot eliminate the multiplicity of equilibria instead policies that impose a strong moral cost on tax evaders and corrupt politicians can lead to a unique equilibrium

corruption and the composition of government expenditure abstract this paper asks whether predatory behavior by corrupt politicians distorts the composition of government expenditure corruption is found to reduce government spending on education in a cross section of countries

credit markets with differences in abilities education distribution and growth this article presents an endogenous growth model in which credit markets affect time allocation of individuals with different educational abilities credit markets allow the more able to specialize in studying and the less able to specialize in working this specialization can increase growth and welfare this article also shows that in economies with high low levels of education abilities the opening of credit markets induces a more disperse equal income distribution the role of intergenerational transfers in overcoming the absence of credit markets is also discussed as well as other forms of credit markets imperfections

relative consumption and tax evasion abstract relative consumption effects or status concerns that feature jealousy in the sense of dupor and liu 2003 boost consumption expenditure if consumption is financed by labour income such status considerations increase labour supply and hence the tax base a higher taxable income in turn can make tax evasion more attractive we show for various specifications of preferences that the tax base effect generally dominates consequently relative consumption effects tend to reduce tax evasion this is true irrespective of whether tax parameters are exogenous guarantee a balanced budget or are set optimally

multi stakeholder regulation privatizing or socializing global labor standards summary this paper evaluates leading non governmental labor regulation initiatives in the united states and europe it comparatively assesses the codes of conduct and monitoring systems within these initiatives discusses their different models of regulation and proposes criteria for evaluating their effectiveness it identifies critical factors which appear to support more effective non governmental regulation such as substantive participation of local stakeholders public transparency of methods and findings and mechanisms that bring market pressures to bear on multi national corporations and simultaneously support processes of multi stakeholder problem solving within factories and global supply chains

how can scandinavians tax so much american visitors to scandinavian countries are often puzzled by what they observe despite large income redistribution through distortionary taxes and transfers these are very high income countries they rank among the highest in the world in terms of income per capita as well as most other economic and social outcomes the economic and social success of scandinavia poses important questions for economics and for those arguing against large redistribution based on its supposedly detrimental effect on economic growth and welfare to form a basis for the discussion table 1 shows tax revenues and income tax rates in the three scandinavian countries denmark norway and sweden as compared to other european countries and the united states we see that the tax to gdp ratio and the tax rates on income are much higher in scandinavia than elsewhere the top marginal tax rates are about 60 70 percent in the scandinavian countries as opposed to only 43 percent in the united states the contrast is even more striking when considering the so called participation tax rate which is the effective average tax rate on labor force participation when accounting for the distortions due to income taxes payroll taxes consumption taxes and means tested transfers this tax rate is around 80 percent in the scandinavian countries implying that an average worker entering employment will be able to increase consumption by only 20 percent of earned income due to the combined effect of higher taxes and lower transfers by contrast the average worker in the united states gets to keep 63 percent of earnings when accounting for the full effect of the tax and

corporate social responsibility in global value chains where are we now and where are we going we outline the drivers main features and conceptual underpinnings of the compliance paradigm we then use a similar structure to investigate the drivers main features and conceptual underpinnings of the cooperative paradigm for working with csr in global value chains we argue that the measures proposed in the new cooperation paradigm are unlikely to alter power relationships in global value chains and bring about sustained improvements in workers conditions in developing country export industries after that we provide a critical appraisal of the potential and limits of the cooperative paradigm we summarize our findings and we outline avenues for research purchasing practices and labor standard noncompliance csr capacity building among local suppliers and improved csr monitoring by local resources in the developing world

is there a child labor trap intergenerational persistence of child labor in brazil this article examines the intergenerational persistence of child labor empirically by looking at household survey data from brazil previous empirical work on child labor has focused primarily on isolating the determinants of child labor using survey data we take a different approach by asking does the child labor status of parents affect the child labor incidence of their children we look at this question in two ways our working assumption is that financial need creates this generational link but we also ask if there exists an intergenerational link over and above that which is transmitted through the production of income perhaps through norms we find strong evidence that this link exists and that it appears to persist even when income is held constant moreover we find that children who did not work as child laborers command higher salaries later in life which suggests that the potential human capital gains through apprenticeship as children are outweighed by the human capital gains children receive through schooling excerpt

economic and social upgrading in global value chains and industrial clusters why governance matters the burgeoning literature on global value chains gvcs has recast our understanding of how industrial clusters are shaped by their ties to the international economy but within this context the role played by corporate social responsibility csr continues to evolve new research in the past decade allows us to better understand how csr is linked to industrial clusters and gvcs with geographic production and trade patterns in many industries becoming concentrated in the global south lead firms in gvcs have been under growing pressure to link economic and social upgrading in more integrated forms of csr this is leading to a confluence of private governance corporate codes of conduct and monitoring social governance civil society pressure on business from labor organizations and non governmental organizations and public governance government policies to support gains by labor groups and environmental activists this new form of synergistic governance is illustrated with evidence from recent studies of gvcs and industrial clusters as well as advances in theorizing about new patterns of governance in gvcs and clusters

choice under uncertainty problems solved and unsolved ffifteen years ago the theory of choice under uncertainty could be considered one of the success stories of economic analysis it rested on solid axiomatic foundations it had seen important breakthroughs in the analytics of risk risk aversion and their applications to economic issues and it stood ready to provide the theoretical underpinnings for the newly emerging information revolution in economics 1 today choice under uncertainty is a field in flux the standard theory is being challenged on several grounds from both within and outside economics the nature of these challenges and of our profession s responses to them is the topic of this paper

audit state dependent taxpayer compliance theory and evidence from colombia we develop and analyze a dynamic model of individual taxpayer compliance choice that predicts audit state dependent taxpayer compliance by distinguishing between forward looking versus myopic versus naive behavior we then test experimentally the audit state dependent model by reporting the results from the first tax compliance experiment run in colombia we find that subjects compliance rates increase with greater enforcement we also find more novel results fine rates should be increased after an audit and nudging myopic individuals toward reporting a constant rather than a fluctuating proportion of income would benefit both the taxpayer and the tax authority jel h26 c91

tax evasion and orders of risk aversion abstract the classic allingham and sandmo s journal of public economics 1 1972 323 338 portfolio choice approach to income tax evasion has been increasingly criticised because it requires an excess degree of risk aversion to explain the observed rate of tax compliance in this paper we argue that there may not necessarily be excess risk aversion and that the evidence can be explained by the distinction between orders of risk aversion as defined by segal and spivak journal of economic theory 51 1990 111 125 and considered in regard to the same problem of anomalous excess risk aversion in financial and insurance markets

costs of distrust the virtuous cycle of tax compliance in jordan tax compliance has been extensively researched yet the classic question why do people pay taxes remains unanswered in jordan tax evasion is widespread the state and citizens have been trapped in a continuous hide and seek game which has taken the form of a virtuous cycle this paper investigates tax evasion along with the most noticeable features of the jordanian tax system it also highlights how the virtuous cycle of tax evasion has been established and what could possibly be a way out of it we argue that sociocultural values are the most prominent cause for tax evasion that is the procedures of state formation and functionality in jordan have created mutual distrust between the state and its citizens having been raised in a community characterized by deep distrust tax evasion is no longer considered immoral by substantial numbers of the jordanian population we argue that successive governments need to create a high trust based culture and formulate strategies that serve to acquire normative ethical values in order to enhance voluntary compliance the way to accomplish this necessity is through enforcing the state s transparency and accountability the taxation system needs to concentrate on income tax rather than raise tax rates on essential commodities to collect substantial tax revenues thus further reform of the taxation system along with a reduction in tax incentives need to be considered moreover lowering the exceptionally high personal income tax threshold would bring jordan in line with its peers expand the base and introduce more progressivity there would also be a scope to introduce a minimum tax based on sales as a tool to address tax evasion

social esteem versus social stigma the role of anonymity in an income reporting game abstract this paper aims at experimentally testing the role of different non monetary dis incentives on tax compliance participants were subjected to different experimental conditions where the role played by anonymity differed as expected anonymity does play an important role in the decision to pay taxes in addition we found that a negative non monetary incentive increases tax compliance more effectively than a positive non monetary incentive we also found that the effect of these non monetary incentives is mitigated when too much information is made available results show that when evasion is made public tax fraudsters are willing to pay in order to keep their dishonest behaviour undisclosed and to avoid public shame interestingly we found a misalignment on the impact of stigmatization namely that the judgement of an individual s evasion is perceived by the individual more harshly than a judgement made by the said individual regarding evasion carried out by other parties

contextual and individual dimensions of taxpayer decision making we examine whether a taxpayer s decision to choose a taxpayer favorable vs a taxpayer unfavorable characterization of income is associated with contextual and individual dimensions of that decision using a 2 2 factorial experimental design we manipulate the prevailing social norm on whether there is a general belief that a specific form of income should be characterized as a capital gain taxed at a lower tax rate and hence taxpayer favorable or as ordinary income taxed at a higher tax rate and hence taxpayer unfavorable and the group affiliation on whether the individual is making a tax characterization decision as a sole proprietor or as a member of a group practice moreover we measure participants fairness perception of characterizing the income as capital gains versus ordinary we study the decisions of 180 graduate business and accounting students from two us business schools to explore these dimensions using a tax ambiguous income situation results indicate that both contextual and individual dimensions impact taxpayer decisions specifically the social norm and fairness perception of characterizing income as capital gains affects the likelihood of choosing such a characterization being a sole proprietor or a member of a group practice does not have any significant main effect however relative to all other conditions taxpayers are most likely to characterize income as capital gains when both the social norms are for capital gains characterization and when the taxpayer is a member of a group practice results remain largely robust to a variety of alternative explanations we conclude the paper with a discussion of our findings and their implications for tax policy enforcement and research

tax evasion is not a gamble a report on two experiments abstract a tax evasion experiment and an equivalent gambling experiment indicate that contrary to the standard model of evasion tax evasion and gambling are quite different although the standard model provides a good basis for analysis of evasion

private versus public schools in post apartheid south african cities theory and policy implications blacks and whites have different incomes decide where to locate in the city and which school to send their children to we show that despite the tuition fees imposed by whites and their remote location some black pupils attend the private school this market solution is shown not to be optimal because whites overprice education in order to limit black attendance at the private school three types of education policies are then considered transportation subsidies private school vouchers and public school spending the efficiency of such policies depends on the fee setting behavior of whites that strongly varies from one policy to another

automobile quality choice under pollution control regulation in this paper we develop a modified quality choice model to study the effects of various mobile source air pollution control regulations we have a single producer that supplies a fixed number of car types two but faces a spectrum of consumers differing in their valuation of car quality the car manufacturer chooses the quality levels of the two car types as well as the sales mix between the two types and the size of the market it wishes to supply by endogenizing both the sales mix and the market size while still allowing quality to be a choice variable we are able to more completely analyze the impact of any car pollution control regulation existing studies of this impact either focus on the model line adjustment response shifts in the quality array or on the price adjustment response changes in the sales mix and market size in allowing for both the model line and the price adjustment options we find that the corporate average fuel efficiency cafe standard is unambiguously welfare superior to the low emission vehicle quantity constraint lev and zero emission vehicle zev programs we also show that the effects of the cafe standard are not equivalent to those of a fuel tax as previously found and that for a given car pollution target the former is preferred to the latter

tax avoidance as a sustainability problem this manuscript proposes that tax avoidance can be better understood and mitigated as a sustainability problem tax avoidance is not just a financial problem for tax authorities but one that erodes critical common spaces necessary for the smooth functioning of regulatory compliance organizational integrity and society defining tax avoidance as a sustainability problem offers a broader and more holistic understanding of the organizational and societal consequences of tax avoidance behavior sustainability is also a mature and legitimized concept that can readily incorporate taxation a variety of established sustainability metrics have the capacity to incorporate anti tax avoidance measures or publicize firms that engage in fair tax practices this manuscript concludes that integrating sustainability principles in conjunction with important extant work on corporate social responsibility and taxation can advance the goals of decreasing the occurrence and acceptability of tax avoidance

partnerships for sustainable change in cotton an institutional analysis of african cases this article examines intersectoral partnerships formed to promote sustainable cotton production and the extent to which such partnerships are facilitated or constrained by their institutional environment based on an analysis of five partnerships in sub saharan africa this article shows that institutional factors create both opportunities and obstacles for partnership implementation which are inextricably linked to their adoption of particular farming strategies and sustainability standards in general these institutional factors tend to facilitate the implementation of partnerships using contract farming and mainstream sustainability standards and hinder those adopting cooperative farming methods and organic standards

child mortality child labour and economic development the paper presents a model where the interplay between fertility child labour and education can explain economic stagnation when parents live in an environment of high child mortality if in contrast child mortality is low the solution of the parental decision problem leads to perpetual economic growth the two long run states are connected by a path of demographic transition and economic take off along which the incidence of child labour disappears the paper also discusses alternative policies to escape from the low income equilibrium

who governs socially oriented voluntary sustainability standards not the producers of certified products summary voluntary sustainability standards setting organizations vsssos create standards to improve the social and or environmental impacts of globalized production networks vsssos are often assumed to have multi stakeholder governance structures that include the producers of certified products e g farmers artisans and workers this article argues that including producers in governance is desirable however analysis of 33 vsssos constitutions shows two thirds do not even imply intention to include producers at most 25 ensure producers have votes seats and 18 give producers veto power the discussion examines what is lost when vsssos do not bring traditionally marginalized voices to global economic governance

location and education in south african cities under and after apartheid we model a south african city during apartheid in which both schooling and mobility are restricted on the basis of race and after apartheid in which no restrictions are imposed we first show that the inequality between blacks and whites decreases when apartheid laws are removed indeed blacks are better off because of human capital externalities due to the possibility of mixing with white students whereas whites are worse off due to negative human capital externalities and intensified land market competition after apartheid we also show that reducing the commuting costs of black children always increases the utility of black families and may even increase that of whites

labour leverage in global value chains the role of interdependencies and multi level dynamics the global segmentation of production and distribution has resulted in highly complex global value chains gvcs where vertical and horizontal dynamics are equally important in determining working conditions and providing points of leverage for labour borrowing notions of multi level governance we propose an analytical framework for describing and explaining success and failure of labour agency when attempting to improve working conditions along gvcs our starting point is that the high complexity of gvcs and the absence of a global overarching authority have been balanced by the emergence of governance mechanisms of different forms and at different levels an assessment of these mechanisms which emphasize process over institutions reveals how different types of interactions and interdependencies along gvcs impact on labour s use of power we argue that in order to fully situate labour agency within governance debates any future research agenda needs to be driven by micro level bottom up approaches

explaining cross country differences in policy response to child labour we develop a model of child labour where poverty and inequality combine to determine policy response to child labour if there are strategic complementarities between parents decisions to educate their children and firms technology choice multiple school enrolment equilibria arise only rich countries and those that are not too poor and have a low wealth inequality benefit from adopting child labour laws this is because such laws commit an economy with either of those initial conditions to the full school enrolment equilibrium which pareto dominates all other equilibria moreover wealth redistribution is not sufficient to eliminate child labour jel classification i20 o33 une explication des differences d un pays a l autre dans la reaction des politiques au phenomene du travail des enfants les auteurs developpent un modele de travail des enfants dans lequel les niveaux de pauvrete et d inegalite se combinent pour determiner les politiques si des complementarites strategiques existent entre les decisions des parents d eduquer leurs enfants et le choix de technologie des entreprises de nombreux equilibres impliquant divers niveaux d inscription a l ecole sont possibles seuls les pays riches et ceux qui ne sont pas trop pauvres ou qui ont un degre d inegalite de la richesse relativement bas tirent profit de lois reglementant le travail des enfants c est le cas parce que de telles lois engagent une economie qui a ces caracteristiques a se diriger vers un equilibre d inscription totale des enfants a l ecole dans ces cas il s agit d un equilibre qui domine au sens de pareto tous les autres equilibres on note de plus que la redistribution de la richesse ne suffit pas pour eliminer le travail des enfants

the emergence of southern standards in agricultural value chains a new trend in sustainability governance abstract the objective of this paper is to understand and trace the emergence of southern standards in global agricultural value chains while the trend towards private standards established by developed country or northern actors has received significant attention in the literature recently an emergent counter trend can be observed which manifests in the development of standards by southern producer country actors this may be attributed to the perceived lack of legitimacy of global standards especially from a southern perspective the paper therefore applies a legitimacy perspective to analyse the emergence of new southern standards in indonesian and malaysian palm oil brazilian soy and south african fruit production the analysis reveals that southern standards both target different audiences to obtain legitimacy and rely on different sources of legitimacy as compared to established northern standards this is done explicitly in order to create cognitive and moral distance to northern standards and ultimately to reclaim the issue areas occupied by northern standards the paper discusses and reflects on the implications of the emergence of southern standards for sustainability governance and concludes with the identification of future research opportunities on southern standards

educational systems growth and income distribution a quantitative study this study sets out to develop a dynamic model within an economy characterized by the coexistence of public and private schools under imperfect credit market conditions in an attempt to provide a clearer understanding of the evolution of economic growth and income inequality we find that any government wishing to reduce income inequality should adopt policies aimed at increasing the enrollment rate in public schools however whilst high enrollment rates can be sustained in private schools and thus create enhanced economic growth this can only occur if accompanied by the liberalization of the credit markets