Income Divergence between Mexican States in the 1990s: The Role of Skill Premium

ABSTRACT During the period 1940–1985 the variance of average incomes across Mexican states fell by 60 percent. Beginning in 1985, however, and coinciding with the adoption of trade liberalization policies and other market‐oriented reforms, state incomes began to diverge. Using microdata from the 1990 and 2000 Mexican Population Censuses, this study decomposes the recent divergence into components due to economy‐wide changes in skill prices and components due to state‐specific changes in the composition of workers. The study finds that the rise in the education premium hindered the progress of poor states and raised the variance of average state wages and labor earnings. However, educational attainment mostly compensated for this income‐widening effect. State‐level regressions reveal that the initial level of education, size of the agricultural sector, and distance from the U.S. border were important factors, while public infrastructure was not. While the border states clearly benefited from increased trade and opening of the economy, I find no evidence that skill demand or the immigration of highly educated workers particularly favored these states.     

Cities,Skills, and Inequality

ABSTRACT The surge in U.S. wage inequality over the past several decades is now commonly attributed to an increase in the returns paid to skill. Although theories differ with respect to why, specifically, this increase has come about, many agree that it is strongly tied to the increase in the relative supply of skilled (i.e., highly educated) workers in the U.S. labor market. A greater supply of skilled labor, for example, may have induced skill‐biased technological change or generated greater stratification of workers by skill across firms or jobs. Given that metropolitan areas in the U.S. have long possessed more educated populations than non‐metropolitan areas, these theories suggest that the rise in both the returns to skill and wage inequality should have been particularly pronounced in cities. Evidence from the U.S. Census over the period of 1950 to 1990 supports both implications.     

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

This study examines the subnational flow in foreign direct investment (FDI) to Mexican states, with a focus on the finished vehicle industry. Although prior studies have examined subnational FDI in Mexico, research on the automobile sector has been scant. Utilizing a framework associated with the theory of asset specificity, we examine the influence of human capital and labor conditions, infrastructure, subnational policies, and security. The study employs a data set on finished vehicle FDI across 31 states and the Federal district for the period of 2004–2014. We adopt a two‐part model. The first part, which includes all states and the Federal district, is estimated with pooled logistic and Firth logistic regressions. In the second part, we examine variation in levels of FDI among states selected for investment with pooled ordinary least squares with panel‐corrected and Driscoll Kraay standard errors. Labor conditions are significant for both state selection and levels of FDI, but education is influential only in the selection stage. In addition, states with trunk rail lines linked to the U.S. border are more likely to be selected and receive higher FDI. After controlling for these influences, murder and homicide rates, and state development have no significant effects.     

县域农业产业科技进步贡献率测算及其影响因素分析——以上杭县水稻生产为例

本文运用农业部科学技术与质量标准司统一颁布的增长速度测算法,对2002-2007年上杭县水稻科技进步贡献率进行测算,分析科技进步贡献率的影响因素,并采用层次分析法对其影响因素的权重进行计算,进而提出相应的对策建议,以期能够提高农业科技进步贡献率,以推动上杭县农业的发展。     

Moonlighting in a High Growth Economy: Evidence from U.S. State‐Level Data

Despite the prevalence of multiple jobholding, there is relatively little research into its causes. Existing research has tested the predictions of standard labor models with micro data. Yet, there has been virtually no research into the relationship between moonlighting and structural differences in regional labor markets such as wages and employment growth. In this manner, this study examines the large differences in multiple jobholding rates across U.S. states. The findings indicate that multiple jobholding acts as a short‐term shock absorber to cyclical changes. However, in the long‐term, these effects dissipate, indicating that moonlighting plays a similar role as do changes in unemployment and labor‐force participation to regional labor market shocks. Conversely, multiple jobholding rates are inversely related to average weekly earnings. Thus, job growth accompanied by real wage (and productivity) growth may result in a decline in multiple jobholding, further exacerbating potential labor shortages. Other key factors found to influence multiple jobholding include occupational structure and education.     

U.S. Farm Wages and Labor Market Efficiency

This study examines convergence in real wages for hired farm labor in the U.S. agricultural sector over the period 1978‐92,using the ‘average farm’ in each county as an observation. Convergence is investigated at the aggregate (or the entire U.S. level)and regional levels. Evidence supports convergence with a slower rate at the aggregate level than that at the regional level. Suggested by the evidence is the possibility that absolute benefits of wage equalization across states are ‘contagious’—that one state's successful investment raises productivity and factor payments in neighboring states and that agricultural labor markets are efficient and integrated all over the country.     

Short‐Run Dynamics of Income Disparities and Regional Cycle Synchronization in the U.S.

Since the 1990s, the issue of regional income convergence and its long‐term tendencies has been thoroughly and heatedly discussed. Much less attention, however, has been devoted to the short‐run dynamics of regional convergence. In particular, three important aspects have not yet been adequately addressed. First, it is indeed essential to understand whether regional disparities manifest a tendency to move systematically along the national cycle. Then, if this happens to be the case, it becomes crucial to know whether 1) these movements are pro‐ or counter‐cyclical,2) the cyclical evolution of the disparities is a consequence of differences in the timing with which the business cycle is felt in regions or it is motivated by the amplitude differences across local cyclical swings. In this paper, we shed light on these issues using data on personal income for the 48 coterminous U.S. states between 1969 and 2008. Our results indicate that income disparities do not move randomly in the short run but follow a distinct cyclical pattern, moving either pro‐ or counter‐cyclically depending on the period of analysis. These patterns are probably explained by the changes in the direction of capital and labor flows that favor developed or poorer states in different periods. As for the underlying mechanism, it appears that the short‐run evolution of the disparities in recent years is largely a consequence of differences in the timing with which the business cycle is felt across states rather than the outcome of amplitude differences across local cyclical swings.     

Income Migration and Income Convergence across U.S. States, 1995–2010

In this paper we examine how internal migration redistributes earned income across U.S. states between 1995 and 2010. We examine interregional income flows by first describing the movement of earned income between U.S. states. Second, we examine the effect of income migration on spatial patterns of income inequality. The question we ask is, “does migration increase or decrease convergence income across U.S. States?” A primary contribution of this paper is that instead of using only 1 year of income migration data to explore these issues, we use yearly data from the first year the Internal Revenue Service (IRS) data started including income (1995/1996) up to the most current data available (2009/2010). Results indicate that income convergence/divergence across states varies by whether or not there is general economic expansion or contraction. Nevertheless, some high‐amenity states continually attract high‐income households.     

农村经济发展状况和生活环境对流动决策的影响

本文运用Tobit模型和调查数据,考察了农村经济社会发展状况对农村劳动力流动行为决策的影响。结果发现：农村经济发展状况整体上对农村劳动力流动产生显著的负向作用;农村基础设施对农村劳动力流动也产生负向影响。在中国城乡二元结构长期作用下,即便在惠农、强农的政策体系和促进城乡经济社会一体化发展的制度框架已初步建立,县域经济和乡镇企业发展迅速的大环境下,农村经济和生活环境的改善,并不能从根本上阻挡农村劳动力向城市流动的趋势。建议政府切实贯彻“一号文件”,以社会主义新农村建设为契机,将有限的资源重点投入到既能促进农民外出打工又能增加劳动力在本地转移的公共事业和基础设施建设上。     

International Trade and the Changing Demand for Skilled Workers in High‐Tech Manufacturing

ABSTRACT States and localities in the U.S. put considerable effort into attracting and maintaining high‐tech manufacturing industries to preserve manufacturing employment. However, little work has examined whether high‐tech industries respond differently than traditional manufacturing to changing trade pressures. This study investigates the impact of international trade on skilled and unskilled labor demand across manufacturing sectors. Results of this study indicate that changes in exchange rates and trade orientation have similar effects across high‐tech and traditional manufacturing sectors. In addition, findings suggest that there is a high degree of variation in the trade‐related effects on labor demand across individual high‐tech sectors, and that the direction of these effects often runs counter to the predictions of traditional trade theory.     

Can the Informal Economy Be “Managed”?: Comparing Approaches and Effectiveness of Day‐Labor Management Policies in the San Diego Metropolitan Area

Day‐labor hiring sites are found in more than 120 municipalities across the U.S., there is limited research examining the specific drivers that generate direct interventions into the day‐labor market, nor is there any research examining the effectiveness of day‐labor management policies. In what follows, I draw on examples from the San Diego Metropolitan Area (SDMA) to address this gap in policy‐research. The findings demonstrate the pervasiveness of neoliberal ideology in day‐labor management, from policing strategies to social service provision. In each case examined, local governments only took direct action when they believed day‐labor activity threatened local commercial activity or when residents' fear of “illegal immigrant” day‐laborers made them question the state's ability to control space effectively. In each case, I also evaluate the effectiveness and cost of the management strategy. The results of this analysis clearly demonstrate that attempts to eliminate day‐labor activity are costly and expensive while efforts to formalize day‐labor cost less and have a higher success rate.     

食品厂质量体系审核——第三方审核的技巧

列举食品厂质量体系审核——第三方审核的目的,首次会议的主持技巧,审核员的审核原则,审核员技能要求,审核应用技巧,审核报告的准备与书写,末次会议到纠正措施的制定,如何跟踪和审核的后续活动。     

Rural‐to‐Urban Commuting: Three Degrees of Integration

Commuting ties between rural places of residence and urban places of employment are among the most visible forms of rural–urban integration. For some rural areas, access to urban employment is a key source of population retention and growth. However, this access varies considerably across rural areas, with distance representing a primary deterrent. In addition to distance, the size of the urban community will also influence rural‐to‐urban commuting opportunities. In this paper, using Canadian data, we empirically estimated the influence of local rural population and job growth on rural out‐commuting within the urban hierarchy. We find consistent support for the deconcentration hypothesis where population moves to rural areas for lifestyle and quality of life reasons, while retaining urban employment. Further, we find some evidence that in addition to distance from the nearest urban center being a deterrent, increased remoteness from the top of the urban hierarchy exerts a positive influence on out‐commuting. Recognition of these types of rural–urban linkages through commuting is essential in designing Canadian rural policy and targeted programs that may effectively support local rural populations. In particular, they point to the need to have reasonable transportation infrastructure for urban accessibility, which should be complemented by other “built” infrastructure to improve the livability of rural communities.     

Alternative Labor Market Closures in a Regional Model

Five versions of a regional economic forecasting and simulation model are implemented to evaluate the forecasting accuracy and significance for impact analysis of alternative regional labor market closures. The five versions correspond to the following specifications: downward-sloped labor demand and upward-sloped labor supply, vertical labor demand and upward-sloped labor supply, an input-output version, and two general equilibrium configurations of labor demand and supply. It is found that the estimated impacts of an exogenous employment stimulus differ greatly across the model versions. Also, post-sample forecasts for 1981-1988 are run for the fifty states plus Washington D.C. with each model version to test their relative forecast accuracy. The forecast comparison shows that the general equilibrium version that specifies inelastic supply is inferior to the other versions for short-term forecasts of wage rates and long-term employment forecasts. For both short- and long-run population forecasts, the versions with completely immobile labor are more accurate than those with completely mobile labor. However, versions that specify an upward-sloped labor supply (partial labor supply adjustment) are the most accurate.     

对乡镇企业吸纳劳动力就业的思考

近年来,乡镇企业吸纳农村劳动力就业的能力呈下降趋势,究其原因主要有经营机制的变革、制度优势的消失、产业结构的低层次、地域布局的分散性、人力资本的低素质等,因此需要采取有效措施,提高乡镇企业吸纳劳动就业的能力,保障农民充分就业。     

Can urban rail transit systems alleviate air pollution? Empirical evidence from Beijing

Improving air quality across mainland China is an urgent policy challenge, while rapidly increasing use of vehicles poses a great menace to the urban population and air quality. Public transportation has received increasing attention as emissions‐ friendly transport options, but whether the urban rail transit system has a significant effect on curbing air pollution has been unclear, and there is a lack of explicit case studies in mainland China. Therefore, the effects of the opening of the Beijing Metro on air pollutants emissions in Beijing were quantified through a regression discontinuity design. Beijing has seen a brisk growth in its rail transit infrastructure and a downward trend of air pollution index since 2005. The regression results show that the operation of the rail transit system was observed to have a significant effect on reducing most of the air pollutants concentrations (PM_2.5, PM₁₀, SO₂, NO₂, and CO) but had little effect on ozone pollution. The results obtained were highly robust across a variety of tests. This study contributes to empirical evidence on the air pollutants associated with the opening of rail transit and traffic‐related pollution control policy making in Beijing.     

Local Embeddedness,Market Focus,and Productivity: Evidence of Taiwanese Manufacturing MNE Subsidiaries in China

There has been considerable literature discussing the characteristics and importance of location‐specific factors in the context of Foreign Direct Investment (FDI), but very little literature linking location‐specific factors to productivity. This study explores, for each location‐specific factor, the relationship between the degree of local embeddedness and the labor productivity. We contribute to the body of literature on location‐specific factors by arguing that market focuses play a pivotal role in determining the impact of local embeddedness on productivity. Based on their strategic choices, we categorize Taiwanese manufacturing multinational enterprise (MNE) subsidiaries in China into two groups: the local‐market‐focus group and the export‐market‐focus group. The paper fits the Ordinary Least Squares (OLS) regression models to the export‐market‐focus group and the local‐market‐focus group separately. For these two groups, each local‐embeddedness variable exerts different effect on labor productivity. Results also suggest that local‐market‐focus FDI is more affected by the host country's local business environment than is export‐market‐focus FDI. Although this study cannot represent all foreign companies in China, its dynamism offers a rich context in which to explore a deeper understanding of foreign companies' business activities in China.     

Outsourcing and Firm Productivity in a Specific Local Production System: Evidence from Reggio Emilia (Italy)

This paper investigates the impact of outsourcing on the labor productivity of firms in a specific local production system. A number of hypotheses about the location‐specific effects of outsourcing are put forward and tested on a sample of firms in the province of Reggio Emilia (within the Emilia‐Romagna region, in North‐East Italy). The relationship between outsourcing and productivity turns out positive only if considering the externalization of high value‐added activities. On the contrary, it is negative in the case of low value‐added activities. This occurs to a greater extent for firms in mature industrial districts, whose socio‐economic conditions however do not arrive to magnify the productivity premium of externalizing high value‐added ones. The technological innovativeness of the firms instead helps with that, pointing to a developmental use of outsourcing in the area.     

Producer Services,Labor Market Segmentation and Peripheral Regions: The Case of Saskatchewan

ABSTRACT Within the last decade, a considerable literature has emerged on the growth and location of producer services employment in North America, and in the role of labor market characteristics in shaping these changes. One of the outcomes of this research has been the realization that producer services are overwhelmingly concentrated in metropolitan areas, and that there is a strong core-periphery dichotomy in the representation of these activities. This paper explores the labor market characteristics of a set of producer service activities within the peripheral urban hierarchy of Saskatchewan, Canada, dominated by the regional cores of Saskatoon and Regina, and surrounded by ten peripheral regions. The data set was provided by Employment Canada, and divided into Canada Employment Centre (CEC) Areas. It was found that the higher order producer services, such as Finance and Business Services, are significantly underrepresented relative to the rest of Canada, while others, such as Services to Primary Producers and Transportation and Communications, are significantly overrepresented. However, the nature of these services, as reflected in their labor market characteristics, are very different. Gender and the role of part-time labor appear to be distinguished on the basis of the specific producer service sector, with very few distinctions across space. On the other hand, differences in the roles played by part-year labor is less related to the sector and more related to position within the peripheral hierarchy. Although the heartland-hinterland model is usually applied at national or even international scales of analysis, the nature of the segmentation of the producer services labor force, and its relationship to urbanization and development of the sector, imply that the model can in fact be used as a fiamework for analyzing intraregional employment relationships within the periphery. This study highlights the nature of the labor force as one aspect of this framework.     

The Agglomeration Dilemma: “Should I Stay or Should I Go?”

This paper presents a critical survey of some recent developments in the theory of international trade. Particular emphasis is given to the role of increasing returns to scale and labor mobility in shaping the pattern of industrial location across integrating countries. The goal is to review and discuss the novel insights and predictions of the so‐called “new” theories in order to pose and stimulate avenues for future research.