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Market Effects (market + effects)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	72%
Humanities and Social Sciences	27%

Kinds of Market Effects

labor market effects

Selected Abstracts

On the Pervasiveness of Home Market Effects

ECONOMICA, Issue 275 2002
Keith Head
Paul Krugman's model of trade predicts that the country with the relatively large number of consumers is the net exporter and hosts a disproportionate share of firms in the increasing returns sector. He terms these results ,home market effects'. This paper analyses three additional models featuring increasing returns, firm mobility, and trade costs to assess the robustness of home market effects to alternative modelling assumptions. We find strikingly similar results for two of the models that relax assumptions about the nature of demand, competition and trade costs. However, a model that links varieties to nations rather than firms can generate opposite results. [source]

An Equilibrium Theory of Learning, Search, and Wages

ECONOMETRICA, Issue 2 2010
Francisco M. Gonzalez
We examine the labor market effects of incomplete information about the workers' own job-finding process. Search outcomes convey valuable information, and learning from search generates endogenous heterogeneity in workers' beliefs about their job-finding probability. We characterize this process and analyze its interactions with job creation and wage determination. Our theory sheds new light on how unemployment can affect workers' labor market outcomes and wage determination, providing a rational explanation for discouragement as the consequence of negative search outcomes. In particular, longer unemployment durations are likely to be followed by lower reemployment wages because a worker's beliefs about his job-finding process deteriorate with unemployment duration. Moreover, our analysis provides a set of useful results on dynamic programming with optimal learning. [source]

The Temporary Staffing Industry: Growth Imperatives and Limits to Contingency,

ECONOMIC GEOGRAPHY, Issue 4 2002
Nik Theodore
Abstract: The temporary staffing industry (TSI) in the United States has enjoyed explosive growth since the 1970s, during which time the market for temporary labor has become increasingly complex and diverse. Rather than focus, as has typically been done, on the wider labor market effects of this sustained expansion in temporary employment, this article explores patterns and processes of industrial restructuring in the TSI itself. The analysis reveals a powerfully recursive relationship among evolving TSI business practices, the industry's strategies for building and extending the market, and urban labor market outcomes as the sector has grown through a series of qualitatively differentiated phases of development or "modes of growth." Moreover, the distinctive character of the TSI's geographic rollout raises a new set of questions concerning, inter alia, the links between temping and labor market deregulation, the nature of local competition, the scope for and limits of value-adding strategies, and the emerging global structure of the temp market. This idiosyncratic industry,which has been a conspicuous beneficiary of growing economic instability,has, throughout the past three decades, restructured continuously through a period of sustained but highly uneven growth. In so doing, it has proved to be remarkably inventive in extending the market for contingent labor, but has encountered a series of (possibly structural) obstacles to further expansion in its domestic market. These obstacles, in turn, have triggered an unprecedented phase of international integration in the TSI, along with a new mode of development,global growth. [source]

On the Pervasiveness of Home Market Effects

Pension Reform, Capital Markets and the Rate of Return

GERMAN ECONOMIC REVIEW, Issue 2 2003
Axel Börsch-Supan
Aging; pension reform; rates of return Abstract. This paper discusses the consequences of population aging and a fundamental pension reform , that is, a shift towards more pre-funding , for capital markets in Germany. We use a stylized closed-economy, overlapping-generations model to compare the effects of the recent German pension reform with those of a more decisive reform that would freeze the current pay-as-you-go contribution rate and thus result in a larger funded component of the pension system. We predict rates of return to capital under both reform scenarios over a long horizon, taking demographic projections as given. Our main finding is that the future decrease in the rate of return is much smaller than often claimed in the public debate. Our simulations show that the capital stock will decrease once the baby-boom generations enter retirement, even if there were no fundamental pension reform. The corresponding decrease in the rate of return, the direct effect of population aging, is around 0.7 percentage points. While the capital market effects of the recent German pension reform are marginal, the rate of return to capital would decrease by an additional 0.5 percentage points under the more decisive reform proposal. [source]

An Examination of the Danish Immigrant-Trade Link

INTERNATIONAL MIGRATION, Issue 5 2007
Roger White
ABSTRACT This paper investigates the influence of immigrants on Danish imports and exports. As public and political debates concerning immigration policy are expected to continue, the findings presented here provide valuable information. Prior to 2002, Denmark's immigration policy was among the most liberal in Europe. However, concerns regarding terrorism, social services depletion, and detrimental labour market effects, all purported to stem from immigration, led the Danish government to severely tighten its policy. In examining Denmark, we explore the immigrant-trade relationship in a small host country that is globally well-integrated, open to trade, and proximate to both major trading partners and primary immigrant source nations. Further, as the share of the Danish population constituted by immigrants increased from 2.6 to 5.6 per cent between 1980 and 2000, Denmark presents an opportunity to consider immigrant-trade links for an increasingly diverse population that was initially relatively homogenous. We consider a number of variations regarding home countries and trade values to estimate immigrant-trade links using a Tobit specification. The findings presented here, when considered in relation to prior research, suggest that the presence and magnitude of immigrant-trade links vary according to host country population homogeneity. Cet article étudie l'influence des immigrants sur les importations et les exportations danoises. Comme il est prévu que les débats publics et politiques sur la politique d'immigration se poursuivent, les conclusions présentées ici fournissent des informations très utiles. Avant 2002, la politique danoise d'immigration était l'une des plus libérales d'Europe. Cependant, les craintes liées au terrorisme, à l'épuisement de l'action sociale et aux effets néfastes sur le marché du travail - que l'on tend à attribuer à l'immigration, ont poussé le Gouvernement danois à durcir sérieusement sa politique. Cet examen du cas du Danemark nous permet d'étudier les liens entre immigration et commerce dans un petit pays d'accueil globalement bien intégré, ouvert au commerce et proche à la fois des grands partenaires commerciaux et des principales nations d'origine des immigrants. Par ailleurs, étant donné que la proportion d'immigrants au sein de la population danoise est passée de 2,6 à 5,6 % entre 1980 et 2000, le Danemark offre la possibilité d'étudier les liens entre immigration et commerce dans une population sans cesse plus hétérogène, par contraste avec son homogénéité d'autrefois. L'auteur considère plusieurs variations en fonction des pays d'origine et des valeurs commerciales afin d'évaluer les liens entre immigration et commerce grâce au modèle Tobit. Les résultats présentés, ajoutés aux travaux de recherche précédents, suggèrent que l'existence et l'importance des liens entre immigration et commerce varient en fonction de l'homogénéité de la population du pays d'accueil. En este documento se investiga la influencia de los inmigrantes sobre las importaciones y exportaciones danesas. Dado que se espera una continuación de los debates públicos y políticos sobre la política de inmigración, las conclusiones que aquí se presentan son de gran utilidad. Con anterioridad a 2002, la política de inmigración de Dinamarca era una de las más liberales de Europa. Sin embargo, inquietudes relacionadas con el terrorismo, el agotamiento de los servicios sociales y los efectos perjudiciales para el mercado laboral, todo lo cual supuestamente se debe a la inmigración, condujeron al Gobierno danés a adoptar una política mucho más estricta. Al examinar la situación en Dinamarca, exploramos la relación entre la inmigración y el comercio en un pequeño país de acogida que, en términos globales, puede decirse que goza de un buen nivel de integración y apertura al comercio y proximidad a los asociados comerciales más importantes y a los principales países de origen de la primera inmigración. Por otro lado, teniendo en cuenta que el porcentaje de la población danesa constituido por inmigrantes aumentó del 2,6 al 5,6 por ciento entre 1980 y 2000, la situación en Dinamarca es una oportunidad para examinar los vínculos entre la inmigración y el comercio con respecto a una población cada vez más diversa, que inicialmente era relativamente homogénea. Se han considerado una serie de variaciones en relación con los países de origen y los valores del comercio para estimar los vínculos entre la inmigración y el comercio, utilizando una especificación Tobit. Las conclusiones que se presentan, al examinarse en relación con anteriores trabajos de investigación, sugieren que la presencia y la magnitud de los vínculos entre la inmigración y el comercio varían según la homogeneidad demográfica del país de acogida. [source]

Economic development, institutional change, and the political economy of agricultural protection An econometric study of Belgium since the 19th century

AGRICULTURAL ECONOMICS, Issue 1 2001
Johan F.M. Swinnen
Abstract This empirical study uses 100 years of annual data on 11 agricultural commodities from Belgium to measure the impact of structural changes coinciding with economic development and changes in political institutions on agricultural protection. The analysis shows that changes in agricultural protection are caused by a combination of factors. Governments have increased protection and support to farmers when world market prices for their commodities fell, and vice versa, offsetting market effects on producer incomes. Other economic determinants were the share of the commodities in total consumer expenditures (negative effect) and in total output of the economy (positive effect). With Belgium a small economy, there was no impact of the trade position. Changes in political institutions have affected agricultural protection. Democratic reforms which induced a significant shift in the political balance towards agricultural interests, such as the introduction of the one-man-one-vote system, led to an increase in agricultural protection. The integration of Belgian agricultural policies in the Common Agricultural Policy in 1968 coincided with an increase in protection, ceteris paribus. Both institutional factors, related to changes in access to and information about the decision-making at the EU level, and structural changes in the agricultural and food economy may explain this effect. [source]

Tourism in US Global Cities: A Comparison of New York and Los Angeles

JOURNAL OF URBAN AFFAIRS, Issue 1 2001
David L. Gladstone
Tourism has become a key component of both the Los Angeles and New York City economies and an integral part of each city's urban redevelopment efforts. Its growth has influenced each city's social structure and built environment in remarkably similar ways. We describe the economic and spatial characteristics of tourism in the two cities, focusing on its labor market effects. We find strong similarities in economic importance and some aspects of labor relations. We find differences in spatial and design consequences as well as certain labor market effects. Utilizing the general framework of regulation theory, we analyze the ways in which economic culture, local autonomy, and urban regimes contribute to the regulation of the tourism industry in the two cities. We also discuss how labor and community, and advocacy groups respond to, and in turn influence, the politics and economic culture of the cities in which they operate. [source]

Trade and Labour Markets: Vertical and Regional Differentiation in Italy

LABOUR, Issue 3 2000
Giuseppe Celi
The labour market misfortunes of the less skilled and rapid growth of international trade in manufactured goods with less advanced countries are linked by the paradoxical observation that trade theorists are in the forefront of those denying the importance of trade in income distribution. This paper analyses this conclusion by stressing the importance of vertical differentiation of trade flows and regional differentiation of skills in order to identify labour market effects of trade integration. Vertical and regional differentiation in trade and labour markets are analysed for a country, Italy, where these two elements seem to play a crucial role. The results show a likely displacement effect on unskilled labour due to trade flows with less advanced countries. Given the characteristics of Italian trade and labour markets, a stronger trade-induced displacement effect on demand for unskilled labour takes place in the North of the country. Thus the vertical differentiation in Italian intra-industry trade is a warning against understating the effect of trade on labour markets if product heterogeneity is not adequately considered. The regional differentiation of skill intensity is another warning against understating the effect of trade on labour markets whenever cross-sectoral effects and the change in relative specialization are not adequately considered. [source]

PRODUCTIVITY AND LABOUR DEMAND EFFECTS OF INWARD AND OUTWARD FOREIGN DIRECT INVESTMENT ON UK INDUSTRY*

THE MANCHESTER SCHOOL, Issue 2 2009
NIGEL DRIFFIELD
We relate the technological and factor price determinants of inward and outward foreign direct investment (FDI) to its potential productivity and labour market effects on both host and home economies. This allows us to distinguish clearly between technology-sourcing and technology-exploiting FDI, and to identify FDI that is linked to labour cost differentials. We then empirically examine the effects of different types of FDI into and out of the UK on domestic (i.e. UK) productivity and on the demand for skilled and unskilled labour at the industry level. [source]