The Welfare Economics of Rural-To-Urban Migration: The Harris-Todaro Model Revisited

In this paper we extend the Harris-Todaro model of rural-to-urban migration to include urban agglomeration effects, some urban real wage flexibility, and a government budget constraint. Without employment subsidies laissez-faire migration is excessive unless real wage flexibility and agglomeration effects are high. Laissez-faire migration is too low compared with the first-best outcome supported by a subsidy, if its financing involves no costs. Simulations suggest that such a program would imply a substantial increase in taxation. If, as seems likely, an increase of this magnitude involves economic costs then the optimal outcome falls well short of first-best.     

The Neoclassical Economic Base Multiplier

In this paper we derive an analytical expression for the regional neoclassical economic base marginal employment multiplier. The model that we adopt is a variant of the 1-2-3 general equilibrium model used in trade analysis. Its specific neoclassical characteristics are that laborsupply is a positive function of the real consumption wage and that factor and product demands are price sensitive. We calculate the employment multipliers associated with both a demand and supply stimulus to the basic sector. We demonstrate that it is possible for the marginal economic base multiplier to take any positive or negative value. However, the value of the marginalmultiplier is likely to approximate the value of the conventional average multiplier the closer production and utility functions are to Cobb-Douglas specifications and the more elastic is the labor supply function.     

Systemic Flexibility,Production Fragmentation and Cluster Governance

The recent process of production fragmentation and the rapid growth of firm clusters have been explained by the increasing need for output flexibility. Although the mainstream literature relates flexibility mostly to labour adjustments, this paper investigates sources of flexibility as being related to forms of inter-firm production. Two extreme cases are compared: industrial districts and monopsonistic clusters. The nature and the implications of production flexibility are discussed in both settings. It is argued that the governance structure of industrial districts affects the dynamics of inter-firm linkages, which in turn enables systemic flexibility to be achieved.     

Socio-Economic Impacts of Locating a Nuclear Waste Repository in Sweden

This paper examines possible socio-economic effects of locating a nuclear waste repository in a rural region of Sweden. In particular, the aim is to analyse the local population and employment developments induced by the construction and operation of a storage facility. A socio-economic impact model has been constructed in order to amalgamate estimations of demand, linkages and production conditions within different sectors of trade and business as well as the public sector. The combined employment and trade-and-business projection is integrated with a demographic prognosis model. A result of the analysis is that the local employment and population impacts are considerable, but the effect is not sufficient to compensate for the long-term negative population and employment trends.     

KNOWLEDGE SPILLOVERS,ABSORPTIVE CAPACITY,AND SKILL INTENSITY OF CHILEAN MANUFACTURING PLANTS*

ABSTRACT Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant‐level production function is estimated with the absorptive‐capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill‐intensive production also enhance its productivity.     

THE EMPLOYMENT CREATION EFFECTS OF FACTOR SUBSIDIES: SOME ESTIMATES FOR NORTHERN IRELAND MANUFACTURING INDUSTRY, 1955-1983

In this paper, I use estimates of the parameters of an industry demand function and a CES production function for Northern Ireland manufacturing in order to measure the relative impact of factor subsidies on employment, capital, and output. A simulation model is able to differentiate the output and substitution effects of subsidies. The results indicate that since manufacturing industry in the province tends to operate with a labor-intensive technology and, since its price-elasticity of demand for output is very low, the employment creating effects of capital subsidies are strongly negative.     

“We Simply Have to Do that Stuff for our Survival”: Labour,Firm Innovation and Cluster Governance in the Canadian Automotive Parts Industry

Based on a case study of the Canadian Auto Workers (CAW) union in southern Ontario we argue for a critical reconstruction of both the labour geography and industrial cluster literature. The former stresses the active role of labour in the formation of economic landscapes, but has yet to explore labour's agency in production and how labour institutions shape technological change, firm innovation and industrial policy and strategy. Conversely, much of the industrial cluster and regional innovation systems literature is silent on the role of unions and industrial relations institutions in fostering innovation. We conclude with two main points. First, while some contend that positive union roles in innovation can only stem from partnerships with management and team working, we argue that innovation is more likely to emerge and worker interests are better protected when traditional collective bargaining structures and progressive employment legislation play a central role. Second, positive workplace and cluster level cooperation in the Canadian automotive parts industry are jeopardized by the broader and ongoing macro‐economic restructuring of OEM global production networks due to over‐capacity and intense cost‐cutting pressures reverberating down the supply chain.     

“Going Public” Reconsidered: Reagan's 1981 Tax and Budget Cuts,and Revisionist Theories of Presidential Power

This paper examines the thesis of the public presidency. In light of the success of Ronald Reagan, many revisionist scholars have criticized traditional models of presidential politics. Whereas traditional views emphasized the bargaining presidency, these recent scholars now argue that, today, the politics of rhetoric dominate the politics of bargaining. This paper examines the central case study of the going-public model, Reagan's 1981 tax and budget cuts, a critical case because it represents Reagan's central legislative success and because many scholars and pundits have credited this success to Reagan's frequent televised public appeals. The case reveals that a strong bargaining dynamic played a part in the 1981 process, and that going public strategies were not as dominant as previously thought.

What has changed significantly is the balance of incentives and constraints that influence strategic choice and the kinds of politicians in the Oval Office who make them. Contemporary presidents, after carefully considering their options, will choose going public over bargaining more often than did their predecessors.

–Samuel Kernell, Going Public     

THE SUPPLY-DRIVEN INPUT-OUTPUT MODEL: A NEW INTERPRETATION BUT STILL IMPLAUSIBLE

ABSTRACT. In this reply, I argue that the production function proposed by Gruver provides a theoretical foundation for the supply model only in a most trivial case. He proposes a more general alternative which is, however, still very implausible. Furthermore, against Rose and Allison, I argue that small input-coefficient changes provide an insufficient excuse for using the supply model for impact studies, and I show that employment estimates may be quite different depending on the approach used.     

Waivers,Federalism, and the Rule of Law

Waivers from legislation have been praised as the foundation for a new era of collaborative federalism. But these exceptions of law, often made without clear statutory authority, undermine the necessary basis for collaboration among governmental entities. That basis is law. Waivers in effect dispense from or even change laws in the interests of administrative flexibility. And, while some commentators have lauded this increased flexibility as empowering for state governments in particular, the real effect is to reduce relations based on law to a condition of perpetual bargaining in which federal administrators hold all the power. Able to change rules and even laws almost at will through new waiver programs and criteria, federal agencies gain arbitrary power, undermining the ability of states and people to plan for their futures on the basis of known rules—the most basic and necessary good provided by the rule of law.     

A THEORETICAL FRAMEWORK FOR SMALL BUSINESS POLICY

A number of public policy issues have been discussed in this article, the most important of which are: 1. Small business would not need special consideration if our economy were basically a competitive one. 2. A large and growing segment of our economy has sufficient market and political power to make our economy basically non-competitive. 3. Small firms tend to provide price competition, to lead in the development of new products and processes, and to generate new innovations and new employment. 4. Government policy tends to create artificial economies of scale, giving an unwarranted advantage to the very large firm. As a first approximation, a policy of government neutrality on firms of varying size is needed. But, because of discriminations which already exist which favor large firms over small firms, special small business programs may be necessary to provide an equitable policy base. Unfortunately, programs designed to benefit all business, like the investment tax credit, tend to primarily benefit larger firms (Berney, 1979). This is the case for two reasons. First, there is a basic difference in production relationships: large firms tend to be more capital intensive and small firms more labor intensive. Second, the more complex a rule or regulation, the more costly it is for small business to use it. Consequently, even the employment tax credit, which should benefit the small firm is not used by them. Instead, it tends more to benefit the larger firm. Neutrality, as a governmental policy, would appear to demand different treatment for firms of varying size. As an example, the “regulatory flexibility” concept applies different standards to different sized firms so that the burden of regulation is more equitably distributed. The concept of encouraging or requiring financial institutions and other lenders to establish “dual prime rates” is a further example. Since small firms appear to have much higher debt to equity ratios and rely more heavily on shorter-term bank credit, they are more heavily burdened by a tight money policy which forces increases of interest rates. Thus, dual prime rates help to spread the burden of rising interest costs more equally. As many people prefer to work for themselves, equalizing the burden of government policy could only serve to increase the basic growth rate for small business, thus providing an easier start for entrepreneurs and would encourage a more rapid rate of economic growth. None of these discussions, however, argues that small business should be protected from failure. The more efficient firms will succeed and prosper, and the least efficient will not. Many currently successful entrepreneurs learn how to improve their production processes or managerial skills from their failures. What is being recommended as a first step is that government should concentrate on equalizing burdens and benefits in order to achieve true neutrality. If private economies of scale do indeed exist, new firms must grow to survive; what the government should not create are artificial economies of scale with public policy. A strong argument for further action can also be made: it appears that significant external benefits are produced by an economic system with a dynamic small business sector. Since these benefits go to society as a whole rather than entrepreneurs alone in the form of increased profits, a freely operating market without government assistance does not generate as many new small businesses as would be optimal for our society. To internalize the benefits that come from small business, governmental programs need to be devised to increase the rate of return on new, innovative small businesses. Should this happen, we could then anticipate increased rapid rates of innovation and technological change, more rapid rates of employment growth, expanded price competition in all sectors of the economy, and improved export capabilities, in short, true flexibility in our capitalistic system.     

深圳市就业空间结构及其演变(2001-2004)

本文基于2001年基本单位普查和2004年经济普查数据,探讨深圳市就业空间结构的特征及演化趋势。研究表明,深圳市的就业空间结构存在就业密度下降、集聚程度不强、制造业占绝对地位、服务业郊区化等现象,而规划和市场是推动其演变的主要力量,在二者的共同作用下,深圳市就业空间结构将呈现以下的演变趋势:(1)从"带状组团式"向"网状组团式"转变;(2)制造业转型导致就业规模缩减;(3)服务业郊区化促进中心外围组团发展;(4)高端服务业集聚进一步增强。     

Spatiality,sweatshops and solidarity in Guatemala

Uneven development in Guatemala has been fuelled by international investment flows and a 1984 law that established a patchwork pattern of each factory as its own free-trade zone. The spatial and social flexibility of this form of labour regulation requires workers to be creative in defending their rights. Our paper explores the creative potential of transnational worker/consumer/student alliances, or mixed coalitions as we call them, to influence global production. We analyse one international solidarity campaign (1991-1999) focused on a shirt factory of Phillips-Van Huesen, the world's largest manufacturer of men's shirts. A co-ordinated strategy linking Guatemalan workers with the US-based anti-sweatshop movement led to the approval of the first collective bargaining agreement in the maquila sector in Guatemala, yet long-term results proved illusive. The factory shut down shortly after the contract was signed and production moved to lower-wage maquilas in the same city. The struggle at the Phillips-Van Huesen shirt factory illustrates the importance of critical geographical knowledge for labour organizing and solidarity politics.     

Spatial Mismatch and the Structure of American Metropolitan Areas, 1970–2000

Abstract.  This paper analyzes the impact of employment and population shifts in U.S. metropolitan areas from 1970 to 2000 on a spatial mismatch index to determine how metropolitan residents reacted to changes in metropolitan employment distributions. In particular, it seeks to determine whether suburban employment growth created new areas to which access is valued or whether it repelled metropolitan residents and sparked population growth in more distant suburban locations. The results show that residents tended to move away from areas gaining jobs. Black residents, on the other hand, appeared to be attracted to areas that are experiencing employment growth.     

European Integration and Industrial Relations: A Case of Variable Geometry?

This contribution considers the implications for industrial relations of European economic integration, and possible trade union responses. We can understand industrial relations as institutions and processes of social regulation of work and employment, whether by law, collective bargaining or more diffuse norms and standards (often, a combination of all three). These systems of worker protection became consolidated at national level; their foundations are eroded by increasing economic internationalisation (to which the European single market was a response, but which it further reinforced). Through the dynamic of "regime competition", multinational capital can play off national governments and national trade unions against one another, while norms of worker protection are subverted by growing insistence on "shareholder value". Effective regulation of work and employment must be reconstructed transnationally; but most trade union energy has been devoted to a vain pursuit of European analogues of national legislation and collective agreements within a bureaucratic elite process of "social dialogue". What is needed is, first, effective articulation between European-level trade union action and the day-to-day realities of national and workplace trade unionism, and second, a struggle to create a European civil society within which the protection of workers' rights can win popular support and which can sustain effective collective mobilisation.     

Employment Deconcentration: A New Perspective on America's Postwar Urban Evolution

In this study we show that during the postwar era the United States experienced a decline in the share of urban employment accounted for by the relatively dense metropolitan areas and a corresponding rise in the share of relatively less dense ones. This trend, which we call employment deconcentration , is distinct from the other well–known regional trend, namely, the postwar movement of jobs and people from the frostbelt to the sunbelt. We also show that deconcentration has been accompanied by a similar trend within metropolitan areas, wherein employment share of the more dense sections of MSAs has declined and that of the less dense sections risen. We provide a general equilibrium model with density–driven congestion costs to suggest an explanation for employment deconcentration.     

A few “big players”: Systems approach to immigrant employment in a mid-sized city

Canada's immigration policy is regarded globally as a best practice model for selecting highly skilled migrants. Yet, upon arrival many immigrants face challenges integrating into employment. Where immigrants settle is one factor that has been shown to impact on employment integration. In Canada, regionalization policies have resulted in more immigrants settling in small to mid-sized cities. It is important to understand how these local systems are organized to promote immigrant integration into employment. Using a systems approach, this paper presents a case study of immigrant employment in a mid-sized city in Ontario, Canada. Through a document review and stakeholder interviews, a systems map was developed, and local perspectives were analyzed. Results demonstrate that in a mid-sized city, few organizations play a large role in immigrant employment. The connections between these core organizations and the local labour market are complex. Any potential challenges to the system that interfere with these connections can cause a delay for newcomers seeking employment. As cities begin to experience growth driven by immigration, there is a need to ensure local services are not only available but also working effectively within the larger employment system.     

‘Classes of Labour’ at the Margins of Global Commodity Chains in India and China

This article deploys the concept of ‘classes of labour’ to map and compare non‐factory labour relations in the garment chain across Delhi and Shanghai metropolitan areas. It contributes to commodity studies by unpacking the great complexity of mechanisms of ‘adverse incorporation’ of informal work in global commodity chains and production circuits. Field findings reveal the great social differentiation at work in informalized settings in the two countries, and suggest that while the margins of garment work are characterized by high levels of vulnerability, they may also open up new possibilities for workers to resist or re‐appropriate some degree of control over their labour and reproductive time. While these possibilities depend on regional trajectories, informal labour arrangements do not only result from capital's quest for flexibility. Workers actively participate in shaping their own labour geography, even when exposed to high employment insecurity. The conclusions more broadly discuss the merits of comparative analysis to study labour in global production circuits.     

我国大学生就业城市选择意愿及其影响因素分析

引导大学生合理的就业流动是促进各类城市协调发展的有效途径。本文以不同类型的就业城市为研究对象,通过全国7个城市的1600余份调查问卷,利用多项Logit模型分析了我国大学生就业城市的选择意愿及影响因素。研究表明,大学生倾向以自身生源地为界限对劳动市场的地域进行二元划分,职业发展机遇和家庭因素在就业地的选择中最为重要,地区特质和自然生态环境的影响最弱,生源地和个人观念都与就业地的选择显著相关。在此基础上提出引导大学生就业流动的政策建议。     

Labour in 'lean' times: geography, scale and the national trajectories of workplace change

In this paper we argue that far from being surpassed by globalization, the nation-state remains a key space for organized labour. However, labour geographers' focus on patterns of union organization and strategies of 'internationalism' underplays the enduring role of national institutions. Moreover, while labour geographers have recognized the significance of new forms of work organization, such as just in time and lean production, with some exceptions they have not examined how unions both formally and informally determine the trajectory of workplace change. Based on case studies of unions in the Canadian and German auto industries, we stress that the linkage between national and workplace scales remains critical to understanding how unions are responding to the challenges being presented by lean and just in time production. Finally, while there is a re-scaling of bargaining in the automobile industry to the firm or enterprise scale, the outcomes of decentralization depend largely on the national regulatory context.