Minimum Wage Policy,Rural Development and Poverty Alleviation in Malawi

This article examines the pattern of minimum wage changes in Malawi and some of their effects, and considers more generally the appropriateness of a minimum wage policy in developing country situations similar to that of Malawi. After a progressive decline in the real value of the minimum wage during the 1970s there is evidence that the government is attempting, through periodic and rather erratic corrective action, to maintain something like a constant real wage. Data from a Ministry of Labour survey demonstrate that such changes in the minimum wage do have a direct effect on wages paid, but that this is concentrated in specific sectors: outside these, minimum wage policy is ineffectual, and the effective coverage achieved in terms of the national work-force is very narrow. Since the most significant influence on the wages of hired workers is the elastic supply of unskilled labour available at very low wages from the smallholder sector, efforts need to be concentrated on raising the supply price of labour through positive policies pursued in the rural sector. Some special features of the rural labour market are therefore examined. Various measures could be taken here: one which seems likely to be effective in producing immediate results is the progressive transfer of burley tobacco quotas to smallholders.     

Medical versus social work-places: constructing and compensating the personal support worker across health care settings in Ontario,Canada

This article explores the role of place in explaining variation in caregiver compensation. Using the labour category of Personal Support Worker (PSW) in Ontario, Canada, it contrasts wage rates across three health care settings: hospitals, long-term care facilities and private homes. An evaluation of current literature from disciplines spanning geography, gender studies, political science and sociology is combined with a critical analysis of policy documents and wage data to reveal that, despite holding similar qualifications and performing comparable job duties, hospital-based workers receive higher wages than home-based workers. I theorize that this wage disparity is partially attributable to the historical privileging of hospital settings in Canada, based on a medical-social continuum of health care valuation. Given that the hospital is constructed as a highly medical place, whereas the home is considered to be a social place, caregiving work enjoys greater financing protection in the former. I argue that these constructions stem from deeply gendered historical roots which view the marketplace as a male-dominated setting for productive waged labour, and the home as a female-dominated setting for unpaid social pursuits. Thus, when personal support services shift from public institutions into private homes, these activities become invisible to the state, and their provision beyond its purview. I conclude that the medical versus social nature of the duties performed by PSWs has become secondary to the medical versus social nature of the setting in which these activities take place. This has translated into lower wages for home-based PSWs, effectively resulting in wage discrimination.     

The Rural Labour Market in Zimbabwe

ABSTRACT Wage labour in Zimbabwe is most often associated with large commercial farms. The use of wage labour within ‘peasant’ agriculture has been rarely investigated and remains largely undocumented. In 1986/7, the author conducted research in Zimbabwe which was explicitly concerned with issues of rural economic differentiation and the wage labour supplied and hired by ‘peasant’ households. The data suggest that a dynamic labour market exists in rural Zimbabwe. Further, it was found that in addition to the many part-time rural wage workers, there is a group of people who depend upon wages for all or the bulk of their income. These people, who have been largely ignored by policymakers, cannot be defined as farmers at all.     

REGIONAL HETEROGENEITY IN WAGE DISTRIBUTIONS: EVIDENCE FROM SPAIN*

ABSTRACT Regional differences in real wages have been shown to be both large and persistent in the United States and the U.K., as well as in the economies of other countries. Empirical evidence suggests that wage differentials adjusted for the cost of living cannot only be explained by the unequal spatial distribution of characteristics determining earnings. Rather, average wage gap decomposition reveals the important contribution made by regional heterogeneity in the price assigned to these characteristics. This paper proposes a method for assessing regional disparities in the entire wage distribution and for decomposing the effect of differences across regions in the endowments and prices of the characteristics. The hypothesis forwarded is that the results from previous studies obtained by comparing average regional wages may be partial and nonrobust. Empirical evidence from a matched employer–employee dataset for Spain confirms marked differences in wage distributions between regions, which do not result from worker and firm characteristics but from the increasing role of regional differences in the return to human capital.     

Flood Disasters and Agricultural Wages in Bangladesh

This article examines the effects of abnormal floods on agricultural wages in Bangladesh. Drawing upon the district‐wise monthly real wage data for the period 1979–2000, it shows that wages decline sharply in the regions that are severely inundated for a long period of time. Wages may remain depressed in these regions even in the post‐flood months. However, wages increase in the flood months in the regions that remain submerged for short durations. The article examines the district‐wise crop yield data to explain these results in terms of the impact of flood on agricultural productivity, and therefore the demand for labour.     

Omsorg om livet. Spädbarnsdödlighetens förändring i Ådalen under 1800-talet [Caring about life. Infant mortality in Ådalen,Sweden, during the 19th century]

The Finnish forest workers' trade union and employers' organizations signed their first wage agreement in 1957 and first collective labour agreement in 1962. Many other sectors had concluded such agreements years earlier. This article challenges the widely accepted idea that collective labour agreements were becoming ubiquitous in Finnish industrial relations soon after the Second World War. Forest workers were left out of this process, and up until the late 1950s their wages and working conditions were not determined by the labour market parties but by state authorities – the state legislated and regulated forestry wages. The explanation for the delayed development of labour market practices in this sector can be found in forest work itself as well as the state's active role. This work was, up until the 1960s, done mainly by small farmers who were reluctant to unionize and unable to otherwise promote their interests. The situation changed when professionalization made them more or less full-time forest workers who more often joined the union. At the same time, the state created organizations and institutions which encouraged labour market parties to cooperate. Their shared struggle against political interference pushed labour market parties towards collective bargaining.     

Irish Domestic Servants, ‘Biddy’ and Rebellion in the American Home, 1850–1900

This essay looks at the role that Anglo‐American women played in governing their Irish immigrant domestic servants and at the racial and gendered meanings that were attached to servitude. In the second half of the nineteenth century, female Irish Catholic immigrants predominated in domestic service employment in the north‐eastern United States. Newspaper and magazine articles portrayed the home as a site of conflict where Protestant, middle‐class families clashed with Irish Catholic ‘peasant’ girls newly arrived in the US. Employers depicted ‘Bridget’ or ‘Biddy’, the collective nickname given to Irish domestic servants, as insubordinate, unrefined and prone to violent outbursts. While reliant on domestic service for wages, female Irish immigrants understood that service represented racialised labour in the United States and was viewed as an occupation befitting non‐white populations.     

Working Groups or Wage Labour? Cash-crops,Reciprocity and Money among the Maka of Southeastern Cameroon

The spread of cocoa cultivation among the Maka in the 1950s created new labour demands. These were not met by wage labour, as in most cocoa producing areas, but rather by a novel system of working groups. Specific economic factors can help to explain why wage labour did not develop within the villages, but it is also clear that the preference of the Maka for more cooperative labour arrangements was related to broader socio-cultural characteristics of this society—notably the somewhat paradoxical tension between strong levelling mechanisms and an equally strong emphasis on personal ambition. The new working groups were based on reciprocal exchange of labour, but money came to play an increasing role in their functioning. They allowed for a certain degree of commodification of labour to the advantage of richer farmers, but ultimately they restricted the rise of more structural inequalities. The recent crisis in cash-cropping makes it clear that a system of working groups can offer farmers more flexibility than wage labour in the face of the vagaries of world-market prices.     

Migration,Frictional Unemployment,and Welfare‐Improving Labor Policies*

Abstract. Studies have suggested that there exists job search and recruiting friction in urban areas. This paper constructs a two‐sector (rural and urban) model involving this factor and investigates how it affects migration and what the optimal policies should be. An analysis shows that frictional urban unemployment brings about intersector wage differentials and that an economy almost always has distortion in the absence of government intervention. Tax and subsidy policies that remove the distortion are explored. Setting urban wages appropriately is also shown to attain the optimum. Finally, we explore the criterion to judge whether changing urban wages as a policy, such as the minimum wage law, enhances social welfare.     

THE EFFECT OF YOUTH POVERTY RATES AND MIGRATION ON ADULT WAGES

We created a migration and earnings history from the National Longitudinal Survey of Youth to analyze the effects of youth county poverty rates on the adult earnings of white male migrants. We estimate a log wage equation that includes human capital measures, migration types, county poverty rates, and a rural–poverty rate interaction variable. Growing up in a rural county has a negative impact on adult wages independent of youth county poverty rates, but the rural effect is significantly greater for those who grew up in high poverty counties. Youth county poverty rates indirectly affect wages through the returns to migration.     

Restructuring the Architecture of State Regulation in the Australian and Aotearoa/New Zealand Cleaning Industries and the Growth of Precarious Employment

This paper examines changes in the commercial cleaning industry in Australasia which are occurring against a backdrop of significant transformation in the mode of labour market regulation in both countries. Specifically, whereas for most of the twentieth century both Aotearoa/New Zealand and Australia had systems of labour market regulation in which the state provided minimum wage and work protections through the interventions of arbitration courts, in the past few years these courts have either been abolished (in the case of New Zealand) or severely restricted in their ambit (in the case of Australia), all as part of a neoliberal effort to introduce “flexibility” into labour markets. The result has been an erosion of wages and a worsening of conditions of employment for cleaners and many other groups of workers. At the same time, this transformation in the architecture of labour market regulation poses significant challenges to unions seeking to represent cleaners and other low‐paid service sector workers.     

SOMETIMES CLOSE IS GOOD ENOUGH: THE VALUE OF NEARBY ENVIRONMENTAL AMENITIES*

ABSTRACT An extensive empirical literature exists, showing that variations in region‐specific amenities can account for persistent differences in real wages across regions. However, this literature has considered only amenities in the same location as the household. This paper argues that environmental amenities at some distance from but accessible to urban areas may lead to negative compensating wage differentials. We use a general equilibrium framework and data from the 1995 Current Population Survey to calculate implicit amenity prices based on measures of distance to environmental amenities. Our results suggest that amenities outside the metropolitan area do generate compensating wage differentials, as workers are willing to accept lower wages to live in accessible proximity to “nice” places. This implies that these places provide a positive externality to those communities that find them accessible. The estimated effects are quantitatively important, suggesting that these externalities should be taken into account in policy making.     

The Americans with Disabilities Act: will it Make a Difference?

This article summarizes the research on labor market discrimination against persons with disabilities and discusses the implications of that research for the probable success of the Americans with Disabilities Act ( ADA ). The research shows that discrimination reduces the wages of men and women with disabilities relative to nondisabied men and women. The size of discriminatory wage differentials varies with the intensity of prejudice toward particular impairments, suggesting that prejudice is an important problem. Employment rates for persons with disabilities are also substantially lower than employment rates for nondisabied persons, but it is unclear to what extent the lower employment rates are attributable to discrimination. The most important provision of the ADA with respect to employment is its requirement for "reasonable accommodation." The success of the ADA in improving employment rates for disabled persons will be determined by how employers evaluate the costs of accommodating workers with disabilities relative to the costs of noncompliance.     

A history of the African people

Abstract

Colonialism entailed numerous changes in Swazi socio-economic configurations, including a growing recourse to waged employment. Yet little is known about the dynamics that drove indigenous Swazi women to work for wages. This article argues that colonial policy, by adversely impacting areas of production involving Swazi people, drove women to seek wage employment. Moreover, this was not a smooth process, but a contested issue. Swazi men, chiefs, the monarchy and colonial administrators all attempted to frustrate female participation in wage employment. In spite of such barriers, as oral interviews with mid-twentieth century working women show, women continued to take up wage employment, and eventually secured the implicit support of colonial administrators in the service of the colonial economy.     

Child loss and maternal wages in China

Using data from a random sample of the 2005 National Population Survey of China, we investigate the association between child death and maternal hourly wages. Approximately 1.6 per cent of the population has experienced at least one child death. Such bereaved mothers’ hourly wages are 53 per cent lower than those of non-bereaved mothers. We find that child death carries a significant wage penalty. Son death has a larger impact than daughter death and its effect decreases as the number of children in the household increases. Our decomposition results show that number of children, maternal education and regional characteristics are the three most important contributors to the wage gap, yet unexplained differences remain large, especially at the lower end of the wage distribution.     

Hardworking Newcomers and Generations of Poverty: Poverty Discourse in Central Washington State

This research is part of a project that aims to reinterpret geographies of poverty in the American Northwest by focusing on the intersections of cultural and political–economic processes that produce poverty differences. This paper contributes to this aim by unpacking poverty beliefs by race at the local county level. This qualitative analysis is grounded in a brief discussion of the political economy of Kittitas County in Central Washington State, which provides space to analyze the theoretical linkages between structural and cultural constructions of poverty differences. Specifically, this paper argues that first generation “hardworking” Hispanic immigrants embody the “working poor”, while individual explanations of poverty are articulated as the “intergenerational poor”, who are racialized as white and choose poverty as a lifestyle. In this vein, many local residents use the marker of “generation” to distinguish between white, lower class individuals who choose to be poor from a group of Hispanic newcomers whose poverty stems from structural forces such as non‐living‐wage jobs and discrimination. This forms one part of a larger strategy to “blame the individual” for the existence of white poverty. This analysis poses new theoretical insights into the intersection between difference markers such as race, class, and generation and contributes to the literature on racial differences in poverty explanations. The geographical specificity of poverty discourse argues for further grounding of the poverty literature in material conditions, which will allow for more nuanced understanding of the creation and persistence of poverty in poor communities.     

Job polarization in the new economy in Danish cities: location,size, and the role of the public sector

ABSTRACT

In this paper we examine the geographic patterns of employment growth and employment polarization in small and medium-sized cities (SMCs) in Denmark during the rise of the new economy. The geography of employment polarization in Danish cities is examined using register-based employment data on occupations and wages divided into the public and private sectors in the period 1993–2006; it therefore covers a long period of transformation and growth in the Danish economy. We conclude that employment growth is characterized by employment polarization combined with growth in low- and high-wage employment and a decline in medium-wage employment. However, these patterns of polarization differ across the public and private sectors, as well as by geography. While local labour market (LLM) size, city position and city specialization influence the geography of private-sector employment growth and polarization, municipal population and composition influence the geography of public-sector growth patterns across wage levels. Finally, public and private employment are positively associated within SMCs, predominantly driven by the positive association between public employment and private-sector low-wage employment. However, public employment is not associated with an increase in private low-wage employment in more remote areas.     

Migration and implicit amenity markets: does incomplete compensation matter?

We first develop an empirical approach for generating measuresof wage over or under compensation (incomplete compensation)for location attributes. We then devise a method to test whethermigration is influenced by incomplete compensation in wagesfor location characteristics. An intercity wage regression isestimated where fixed effects capture the impact of site characteristicson wages. We then regress the fixed effects on a comprehensivevector of site attributes, where the residuals from this stagecapture incomplete compensation in wages. The derived measuresof incomplete compensation are included in a standard microdata-baseddiscrete choice model of migration. The results suggest thatincomplete wage compensation for site characteristics mattersin migration decisions, and the findings are consistent withtendencies toward spatial equilibrium in the distribution ofpopulation.     

Migration and market wage risk

The author presents an approach to the analysis of labor migration that incorporates the role of market wage variability as a source of information in individual migration decisions. "The focus...is on quantifying the effects of the origin market acting through amenities and the share of market-specific wage variability as it affects forecasts of alternative wages and forecast precision. A subsample of employed males...from the [U.S.] National Longitudinal Survey of Youth (NLS) age 16 to 22 years is used for estimation. The empirical results are consistent with the theoretically predicted relationship between migration propensities and regional differences in the information content of wages. In addition, the results provide evidence that risk aversion deters migration given uncertainty, measured by forecast precision, about alternative market wage levels."