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  • Author: Raymond Robertson, Davide Gandolfi, Timothy Halliday
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Large wage differences between countries (“place premiums”) are well documented. Theory suggests that factor price convergence should follow increased migration, capital flows, and commercial integration. All three have characterized the relationship between the United States and Mexico over the last 25 years. This paper evaluates the degree of wage convergence between these countries during the period 1988 and 2011. We match survey and census data from Mexico and the United States to estimate the change in wage differentials for observationally identical workers over time. We find very little evidence of convergence. What evidence we do find is most likely due to factors unrelated to US-Mexico integration. While migration and trade liberalization may reduce the US-Mexico wage differential, these effects are small when compared to the overall wage gap.
  • Topic: World Trade Organization
  • Political Geography: United States, Mexico
  • Author: Ashley J. Tellis
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: Carnegie Commission on Preventing Deadly Conflict
  • Abstract: The United States and India have agreed to form a working group to explore the joint development of India's next-generation aircraft carrier. While the Indian Navy has already begun design work, wide-ranging cooperation with the United States has enormous potential and offers India the opportunity to acquire the most capable warship possible. Such collaboration would increase the Indian Navy's combat power and would resonate throughout the Asian continent to India's strategic advantage. The most valuable U.S. contributions are likely to materialize in the fight, possibly in the move, and hopefully in the integrate functions.
  • Political Geography: United States, India, Asia
  • Author: Dmitri V. Trenin
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The rupture between Russia and the West stemming from the 2014 crisis over Ukraine has wide-ranging geopolitical implications. Russia has reverted to its traditional position as a Eurasian power sitting between the East and the West, and it is tilting toward China in the face of political and economic pressure from the United States and Europe. This does not presage a new Sino-Russian bloc, but the epoch of post-communist Russia's integration with the West is over. In the new epoch, Russia will seek to expand and deepen its relations with non-Western nations, focusing on Asia. Western leaders need to take this shift seriously.
  • Topic: International Relations
  • Political Geography: Russia, United States, China, Europe
  • Author: Samah Rahman, Shashanth Shetty
  • Publication Date: 07-2015
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Canada is lagging behind in research and development (R&D) commercialization, ranking fifteenth in the World Economic Forum’s 2015 Global Competitiveness Report. One of the most important contributing factors to the gap between R&D and competitiveness is that new entrepreneurs lack the monetary and informational resources to access intellectual property (IP) legal expertise. The authors of this brief argue that the Canadian government’s strategies have been ineffective, and its current policy initiatives have failed to consider the importance of disseminating IP legal knowledge directly to innovators. It is recommended that the government look to the models used by the United States and South Korea to mobilize IP legal knowledge within the entrepreneurial community. This can be achieved by establishing a national IP legal clinic at the university level — as well as increasing funding for existing programs and creating a virtual clinic — and including an IP rights application course in select university programs, targeting innovators who will require IP legal advice in the future.
  • Topic: Economics, Intellectual Property/Copyright
  • Political Geography: United States, Canada, South Korea
  • Publication Date: 07-2015
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: North Korea last week rejected South Korea’s invitation to attend the Seoul Defense Dialogue in September, denigrating the talks as “puerile.” In the same breath, it also rejected a proposal by National Assembly speaker Chung Ui-hwa for a meeting with his northern counterpart to celebrate the 70th anniversary of the liberation of the Korean Peninsula on Aug. 15. If you ask an Obama administration official about America’s “strategic patience” policy of non-dialogue with North Korea, he or she will tell you that the problem is not an unwillingness on the part of the United States to have dialogue. On the contrary, the Obama administration has tried every channel possible, from six-party talks to personal communications to secret trips, to jump-start a dialogue. But the regime in Pyongyang has rejected all of these.
  • Topic: Conflict Resolution, Defense Policy, International Security
  • Political Geography: United States, South Korea, North Korea
  • Author: Maren Leed, J.D. McCreary, George Flynn
  • Publication Date: 08-2015
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The demand for amphibious capabilities in the Indo-Asia-Pacific region reflects the operational and strategic challenges faced by the U.S. Marine Corps and Australian Defense Forces. Both nations have indicated the importance of deepening their strategic partnership, yet there has been a lack of clarity around the desired outcomes for and priority among the variety of cooperative activities. Recognizing that the demand for amphibious capabilities in the Indo-Asia-Pacific region will likely continue to exceed the current capacity of any one nation, the CSIS International Security Program sought to explore the strategic and operational utility of various models for combined amphibious forces. The study first provides an overview of existing and projected ADF and USMC amphibious capability and capacity. Using data gathered from interviews with U.S. and Australian subject matter experts, the study examines two potential force options along five dimensions: range/duration, responsiveness, scale, breadth, and force protection. These options are evaluated against three mission sets varying in complexity. As the United States continues to face shortfalls in amphibious capacity and as Australia continues to advance its capabilities, this report provides a framework and recommendations through which to align strategic interests and advance a shared vision for combined amphibious operations.
  • Political Geography: United States, Australia
  • Author: Richard Sokolsky, Frederic M. Wehrey
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: For over three decades, the question of who controls the Persian Gulf has formed the basis for America’s massive military buildup in the region. At the heart of the region’s security dilemma is a clash of visions: Iran seeks the departure of U.S. forces so it can exert what it sees as its rightful authority over the region, while the Gulf Arab states want the United States to balance Iranian power. Resolving this impasse will not be easy. But the Iranian nuclear agreement presents an opportunity to take a first step toward creating a new security order in the Gulf, one that could improve relations between Iran and the Gulf Arab states and facilitate a lessening of the U.S. military commitment. Read more at: http://carnegieendowment.org/2015/10/14/imagining-new-security-order-in-persian-gulf/ij3p
  • Topic: Security, Politics, Treaties and Agreements, Nuclear Power
  • Political Geography: United States, Persian Gulf
  • Author: Emily Isaac
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: Berkeley Roundtable on the International Economy
  • Abstract: In the past five years, San Francisco has become home to dozens of new online and mobile “service networking” companies that claim to be “revolutionizing” the way work gets done. Making up what has come to be known as the “platform economy,” these technology companies provide the platforms for online and mobile marketplaces in which users can buy and sell their goods and services. Together, these “platform economy” companies make up a concentrated innovative cluster in the San Francisco Bay Area, and, more specifically, San Francisco proper. One of the sharing economy’s pioneers and largest success stories, TaskRabbit Inc. allows users to outsource small jobs and tasks to local contractors—or, in company lingo, neighborhood “Taskers.” Launched out of Boston in 2008, TaskRabbit is just one of many tech startups that have left Boston for the San Francisco Bay Area. Since relocating to San Francisco, the company has received $37.5 million in venture funding, is available in 20 cities, and reportedly has 1.25 million users and over 25,000 Taskers. Indeed, TaskRabbit exemplifies the immeasurable benefits of strategically locating a firm in an industry cluster.
  • Topic: Economics, International Trade and Finance, Science and Technology, Communications, Labor Issues
  • Political Geography: United States
  • Author: Robert Z. Lawrence
  • Publication Date: 06-2015
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: Over the past decade, the US economy has been plagued by sluggish wage growth and rising income inequality. The debate over inequality in the 1980s and 1990s focused on the growing disparity between the earnings of skilled and unskilled workers and the earnings of the super-rich. Growing inequality between capital and labor income has now been added to these concerns. Remarkably, the growth in real GDP per worker over the decade of the 2000s, which averaged 1.7 percent annually, was actually more rapid than in the 1970s, 1980s, or 1990s, yet in the 2000s workers saw almost no increase in their take-home pay. Consistent with this gap between labor productivity and wage growth was a pronounced decline in the share of US national income earned by workers. As labor's share has declined, the share of capital has risen and has been especially concentrated in corporate profits. As profits are far less equally distributed than wages, this increase has contributed to rising income inequality. There are several plausible reasons for this development—globalization, automation, weak bargaining power of labor, political capture, higher markups—but the natural starting point for explaining factor income shares is the neoclassical theory of the functional distribution of income enumerated by John Hicks and Joan Robinson in the 1930s. In this framework there are two possible explanations for labor's recent declining share. The first is that capital and labor are gross substitutes, and the second is that capital and labor are gross complements. Several papers have explained the recent decline in labor's share in income by claiming that capital has been substituted for labor. Lawrence puts forward the alternative "gross complements" explanation for the declining US labor share. He shows that despite a rise in measured capital-labor ratios, labor-augmenting technical change in the United States has been sufficiently rapid that effective capital-labor ratios have actually fallen in the sectors and industries that account for the largest portion of the declining labor share in income since 1980. In combination with estimates that corroborate the consensus in the literature that the elasticity of substitution is less than 1, these declines in the effective capital-labor ratio can account for much of the recent fall in labor's share in US income at both the aggregate and industry level. Paradoxically, these results also suggest that increased capital formation, ideally achieved through a progressive consumption tax, would raise labor's share in income.
  • Topic: Economics, Globalization, Markets, Labor Issues
  • Political Geography: United States
  • Author: Phillip Carter, Katherine Kidder
  • Publication Date: 01-2015
  • Content Type: Working Paper
  • Institution: Center for a New American Security
  • Abstract: Military, Veterans, and Society Program Director Phillip Carter and Research Associate Katherine Kidder examine the growth of military compensation in the post-Cold War era, from 1990 to 2015, as well as the social contract America has with its All-Volunteer Force, and the ways in which monetary compensation should be considered as part of a broader talent management strategy for the armed forces. The policy brief presents an opportunity for the nation to assess its social contract with the All-Volunteer Force and adjust (if necessary) to meet the national interest and sustain its most critical national security asset.
  • Topic: Security, Economics, Labor Issues, Military Affairs
  • Political Geography: United States