The Global Economic Crisis and Unemployment in China

Two noted academic specialists on labor economics and population statistics of China examine the impacts of the global economic crisis of 2008-2009 on the job security of urban workers, and the ensuing repercussions for the Chinese society and economy. More specifically, they probe and determine the magnitude of urban unemployment in China in 2008 and 2009 as it appears to be reported in different segments of the country's immense labor market. A particular focus of the paper is on differences in unemployment among two groups of workers (those with urban hukou vis-à-vis rural migrant workers) with significantly different sets of rights and privileges, as well as levels of job security. The authors also provide an estimate of the urban unemployment rate in 2009 that differs from the official rate. They argue that measures toward further integration of rural and urban labor markets and reducing natural unemployment are ultimately more beneficial than short-term interventions to adjust cyclical joblessness stemming from the global economic crisis and recession.     

URBAN UNEMPLOYMENT AND THE SPATIAL STRUCTURE OF LABOR MARKETS: AN EXAMINATION OF THE “TODARO PARADOX” IN A SPATIAL CONTEXT*

ABSTRACT The Todaro paradox and the effects of job creation in urban areas will be re-examined in our spatial model in which the radius of the labor market is endogenously determined by the rational choices of workers. The travel cost of workers plays a crucial role in the choice between two different types of response, migration or commuting. By considering travel costs, we find that the Todaro paradox can be applied to developed, as well as developing, countries. Job creation in urban areas can produce a paradoxical increase in urban unemployment in developed countries, because the low marginal cost of travel will significantly increase the radius of the urban labor market and create new labor supply without migration.     

RURAL–URBAN MIGRATION AND UNEMPLOYMENT: THEORY AND POLICY IMPLICATIONS*

ABSTRACT We develop a regional model where, in the city, unemployment prevails because of too high (efficiency) wages, while, in the rural area, workers are paid at their marginal productivity. We characterize the steady‐state equilibrium and show that it is unique. We then consider two policies: decreasing urban unemployment benefits and subsidizing urban employment. We find that decreasing the unemployment benefit in the city creates urban jobs and reduces rural–urban migration since new migrants have to spend some time unemployed before they can find a job in the city. On the other hand, raising employment subsidies increases urban employment but may also increase urban unemployment because it triggers more rural–urban migration. In this respect, the employment subsidy policy can backfire by raising rather than reducing urban unemployment.     

What drives the spatial wage premium in formal and informal labor markets? The case of Ecuador

This article investigates the incidence of agglomeration externalities in Ecuador, a small-sized, middle-income developing country. In particular, we analyze the role of the informal sector within these relations, since informal employment accounts for a significant part of total employment in the developing countries. Using individual level data and instrumental variable techniques, we investigate the impact of spatial externalities, in terms of population density, local specialization and urban size, on the wages of workers in Ecuadorian cities. The results show that spatial externalities matter also for a small developing country. Moreover, analysis of the interaction between spatial externalities and informality shows that, on average, workers employed in the informal sector do not enjoy significant benefits from agglomeration externalities. Finally, by investigating the possible channels behind spatial agglomeration gains we show that the advantages from agglomeration for formal sector workers may well be accounted for by better job-quality matches and, to a lesser extent, by learning externalities. For informal sector workers, our findings also suggest possible gains from job changes, which offset a penalty for remaining employed in the same occupation.     

CITIES,WAGES, AND THE URBAN HIERARCHY

In this paper, we estimate the size of the wage premium necessary to compensate for remoteness incurred by workers compared to the city size productivity effects. We construct five urban hierarchy tiers for cities in Chile based on their level of remoteness from the urban system. We then contrast the effect generated by these variables on worker wages. We report a positive gradient of wages the higher the size of the urban tier and a loss in wages that can reach 35 percent for more remote cities.     

THE SOURCES OF URBAN DEVELOPMENT: WAGES,HOUSING, AND AMENITY GAPS ACROSS AMERICAN CITIES*

ABSTRACT This paper asks whether worker utility levels—composed of wages, rents, and amenities—are being equalized among American cities. Using microdata on U.S. urban workers in 1980 and 2000, little evidence of equalization is found. Comparable workers earn higher real wages in large cities, where amenities are also concentrated. Moreover, population growth between 1980 and 2000 has not been significantly different in low‐ and high‐utility cities, suggesting that other forces are at work shaping the sorting processes that match workers and firms. We outline an alternative view of the drivers of change in the American urban system, and urban development more generally, by applying theory from economic geography.     

Worker Endowments and the Effects of Institutions on Earnings Realization: A Cross-National Comparison

In this study we investigate how differential institutions, and their observance within regional labor markets, impact potential earnings realization. We investigate institutional linkages to labor market outcomes by means of cross-nation comparisons between the United States and the Netherlands. In this regard, better job-matching (information) programs, higher relative unemployment benefits and minimum wages, and a greater prevalence of both trade unionism and collective bargaining likely work to the favor of Dutch workers, and in turnaugment their reservation wages during job search. The predictable outcome of higher earnings realization among Dutch workers is tested econometrically by frontier estimation.     

JOB CHAINS AND WAGE CURVES: WORKER MOBILITY AND MARSHALLIAN SURPLUSES IN EVALUATING REGIONAL EMPLOYMENT GROWTH*

ABSTRACT In theory, new regional jobs yield two distinct sources of welfare gains to workers: (1) mobility gains achieved by workers as they move up job chains and (2) traditional Marshallian surpluses enjoyed by all workers as labor markets tighten. In the past, we have argued that the second channel is likely to be small relative to the first. This paper integrates a chain model (using PSID job change data) with a modified‐Marshallian model based on “wage curves” (estimated from CPS data) to formalize and test that argument. High wage jobs with modest wage–unemployment elasticities show Marshallian effects only 10 percent to 20 percent the size of mobility effects. Low wage jobs with somewhat higher elasticities show Marshallian effects from 40 percent to 70 percent the size of mobility effects.     

Urban Unemployment and Migrants in Africa: Evidence from Harare 1985–1994

Unemployment is a major problem in urban centres in sub‐Saharan Africa. The impact of policies associated with structural adjustment programmes has frequently meant major formal job losses in both the public and private sectors. Although it is widely recognized that there has been a major (further) shift into the informal sector, it is also often claimed that ‘unemployment’ rates have greatly increased. When it is also assumed that net rural–urban migration has continued at a rapid pace, this is believed to be a significant contributor to the rise in unemployment. However, because ‘unemployment’ and ‘underemployment’ are hard to measure and to keep discrete when studying urban Africa, it is apparent that there is much confusion over current levels and trends in unemployment. This article discusses the problems of analysing African urban unemployment, drawing in particular on a recent ILO report, and presents evidence from long‐term research on migrants in Harare which casts doubt on the extent to which net in‐migration is a major factor contributing to unemployment in contemporary, economically adjusting sub‐Saharan Africa.     

1927—1937年上海失业人群再就业状况述略

由于政局动荡、市面萧条、工商企业衰敝等因素的影响,1927-1937年间上海的失业形势十分严重.在失业群体中,以民族工商业的工人、职员等男性青壮年为主,其文化程度总体上较低,失业的时间较长,谋生的压力较重.他们或力图通过社会中介机构谋求就业机会;或参加各类职业培训,提高再就业技能;或在政府和社会的帮助下,自主就业.就这一时期再就业的特点而言,一是传统的血缘、地缘关系仍是失业者在沪谋生的主要条件,同时市场化就业的趋势也日趋明显;二是就业竞争十分激烈,再就业的成功率不高;三是政府和社会在这一过程中形成了一定的分工.     

THE IMPACT OF SKILL‐SPECIFIC MIGRATION ON REGIONAL UNEMPLOYMENT DISPARITIES IN GERMANY

Differences in regional unemployment are still pronounced in Germany, especially between eastern and western Germany. Although the skill level seems important for the relationship between regional disparities and labor migration, corresponding empirical evidence is scarce. Applying dynamic panel models, we investigate the impact of labor mobility differentiated by educational attainment of the workers on regional unemployment disparities between 2000 and 2008. The impact of low‐ and medium‐skilled migration is consistent with traditional neoclassical reasoning, suggesting that labor mobility reduces differences in regional unemployment rates. In contrast, the migration of high‐skilled workers tends to reinforce disparities.     

WHAT DRIVES THE URBAN WAGE PREMIUM? EVIDENCE ALONG THE WAGE DISTRIBUTION

This paper aims at disentangling the role played by different explanations on the urban wage premium along the wage distribution. We analyze the wage dynamics of migrants from lower to higher density areas in Italy, using quantile regressions and individual data. The results show that unskilled workers benefit more from a wage premium accruing over time, while skilled workers enjoy a wage premium when they migrate as well as a wage increase over time. Further, we find that for unskilled workers the wage growth over time is mainly due to human capital accumulation in line with the “learning” hypothesis, while for skilled workers the wage growth is mainly explained by the “coordination” hypothesis, i.e., cities enhance the probability of better matches between workers and firms.     

THE URBAN ENTERPRISE ZONE*

ABSTRACT This paper provides an analytical framework of urban enterprise zones in a context of regional development. The direct and indirect impacts of urban enterprise zones on regional economies such as job creation, urban unemployment, agricultural wage and changes in the regional economic structure are analyzed by incorporating the intermediate goods sector. The study suggests that the establishment of urban enterprise zones is a beneficial and effective policy instrument which can be used in promoting urban renewal and regional economic growth.     

Equitable Approaches to Local Economic Development

Central city economic development during the 1980s and 1990s resounded with the theme of "public-private partnerships" putting together new downtown hotels, sports stadiums, and festival marketplaces. Yet, as city after city proclaimed its "renaissance" and "rebirth," poverty and unemployment increased in many of the same cities. Economic disparities also increased between central cities and their suburbs. These contrasting patterns of growth and decline were often reflected in local economic development struggles over downtown versus neighborhoods, economic development as job generation versus real estate development, and the rich and powerful versus the poor and marginalized. In some cities, these concerns often were articulated by African-American, Latino, and blue-collar communities and their activist supporters. They led to new development strategies designed to balance more equitably the costs and benefits of local economic development. The new strategies included opening government to previously excluded constituencies, linking downtown development to neighborhood development managed by community development corporations, and balancing development across economic sectors. This article reviews efforts in several cities to implement redistributive urban planning and local economic development policies. It concludes with three possibilities for improving broader equity outcomes in future local economic development.     

AGING NATIONS AND THE FUTURE OF CITIES*

ABSTRACT We investigate whether an aging population may challenge the supremacy of large working cities. To this end, we develop an economic geography model with two types of individuals (workers and retirees) and two sectors (local services and manufacturing). Workers produce and consume; the elderly consume only. As a result, the mobility decision of workers is driven by both the wage gap and the cost‐of‐living gap, unlike the elderly who react to the differences in the cost of living only. We show that the return of pre‐industrial urban system dominated by rentier cities does not seem to be on the agenda. Quite the opposite, the future of large working cities is still bright, the reason being that today's urban costs act as a strong force that prevents a large share of local services and manufacturing firms from following the rentiers in the elderly cities, while the supply of differentiated b2c services impede their complete separation.     

快速工业化城市职住空间平衡与过剩通勤研究——以中山为例

过剩通勤是衡量城市居民职住空间组织和通勤效率的重要指标。本文以快速工业化城市中山市为例,采用2012年中山市交通调查数据,分析中山市职住空间平衡与过剩通勤状况。通过线性规划模型计算发现,中山市居民的通勤距离、过剩通勤率(E)、通勤容量(C_u)使用率均普遍小于国内大城市和西方城市。城市空间结构与土地利用、产业结构与就业结构对中山市的通勤特征的形成有重要的影响。过剩通勤各项指标与户籍、职业类型和家庭收入有显著的相关性。表现为家庭收入越高,过剩通勤率相对较高。机关事业单位和企业行政办公人员通勤效率较低,而产业工人通勤效率较高。非本市户籍人口通勤效率高于本市户籍人口。     

A cultural justice approach to popular music heritage in deindustrialising cities

ABSTRACT

Deindustrialisation contributes to significant transformations for local communities, including rising unemployment, poverty and urban decay. Following the ‘creative city’ phenomenon in cultural policy, deindustrialising cities across the globe have increasingly turned to arts, culture and heritage as strategies for economic diversification and urban renewal. This article considers the potential role that popular music heritage might play in revitalising cities grappling with industrial decline. Specifically, we outline how a ‘cultural justice approach’ can be used within critical heritage studies to assess the benefits and drawbacks of such heritage initiatives. Reflecting on examples from three deindustrialising cities – Wollongong, Australia; Detroit, USA; and Birmingham, UK – we analyse how popular music heritage can produce cultural justice outcomes in three key ways: practices of collection, preservation and archiving; curation, storytelling and heritage interpretation; and mobilising communities for collective action.     

“Urban Ecology Under Fire”: Water Supply in Madrid During the Spanish Civil War (1936–1939)

This paper investigates the critical role of workers to enhance the resilience of water supply services in cities at war through analyzing the case of Madrid and the Madrid water company Canales del Lozoya during the Spanish Civil War (1936–1939). We argue that securing the protection of vital urban flows mediated through infrastructures is a key objective of cities under attack. In doing so we contend that examining how those affected by the interruption of these flows cope with the situation represents a valuable but largely neglected form of water management. We illustrate how quotidian knowledge about the urban geography of water flows may have important repercussions for the war effort itself. In a nutshell, the case of Madrid offers an early account of the critical role of water workers in sustaining “urban ecologies under fire” securing the complex urban metabolism while also contributing to the struggle against invading forces.     

THE COMPLEMENTARITY BETWEEN CITIES AND SKILLS*

ABSTRACT There is a strong connection between per‐worker productivity and metropolitan area population, which is commonly interpreted as evidence for the existence of agglomeration economies. This correlation is particularly strong in cities with higher levels of skill and virtually nonexistent in less skilled metropolitan areas. This fact is particularly compatible with the view that urban density is important because proximity spreads knowledge, which either makes workers more skilled or entrepreneurs more productive. Bigger cities certainly attract more skilled workers, and there is some evidence suggesting that human capital accumulates more quickly in urban areas.     

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.