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  • Author: Michael Clemens, Ethan Lewis, Hannah Postel
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: An important class of active labor market policy has received little rigorous impact evaluation: immigration barriers intended to improve the terms of employment for domestic workers by deliberately shrinking the workforce. Recent advances in the theory of endogenous technical change suggest that such policies could have limited or even perverse labor market effects, but empirical tests are scarce. We study a natural experiment that excluded almost half a million Mexican ‘bracero’ seasonal agricultural workers from the United States, with the stated goal of raising wages and employment for domestic farm workers. We build a simple model to clarify how the labor market effects of bracero exclusion depend on assumptions about production technology, and test it by collecting novel archival data on the bracero program that allow us to measure state-level exposure to exclusion for the first time. We reject the wage effect of bracero exclusion required by the model in the absence of induced technical change, and fail to reject the hypothesis that exclusion had no eect on US agricultural wages or employment. Important mechanisms for this result include both adoption of less labor-intensive technologies and shifts in crop mix.
  • Topic: Labor Issues, Immigration, Financial Markets
  • Political Geography: Mexico
  • Author: Nora Lustig
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper presents results on the impact of fiscal policy on inequality and poverty in sixteen Latin American countries around 2010. The countries that redistribute the most are Argentina, Brazil, Costa Rica and Uruguay, and the least, Guatemala, Honduras and Peru. At higher social spending, greater redistribution is achieved, but countries with a similar level of social spending show different levels of redistribution which suggests that other factors such as the composition and targeting of the expenditures are involved in determining the redistributive effect beyond its size. Fiscal policy reduces extreme poverty in twelve countries. However, the incidence of poverty after taxes, subsidies and monetary transfers is higher than the pre-fisc poverty rate in Bolivia, Guatemala, Honduras, and Nicaragua, even when fiscal policy does reduce inequality. Expenditure on pre-school and primary education is equalizing and pro-poor in all countries. Spending on secondary education is equalizing in all countries and also pro-poor in some countries but not all. Expenditure on tertiary education is never pro-poor, but it is equalizing, with the exception of Guatemala, where it is regressive and unequalizing and in Venezuela, where its redistributive effect is zero. Health spending is always equalizing but it is pro-poor only in Argentina, Brazil, Chile, Costa Rica, Ecuador, the Dominican Republic, Uruguay and Venezuela.
  • Topic: Civil Society, Poverty, Capitalism, Income Inequality
  • Political Geography: Latin America
  • Author: Nancy Birdsall, Liliana Rojas-Suarez, Anna Diofasi
  • Publication Date: 02-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Despite increasing volatility in the global economy, the uptake of the IMF’s two precautionary credit lines, the Flexible Credit Line (FCL) and the Precautionary and Liquidity Line (PLL), has remained limited—currently to just four countries. The two new lending instruments were created in the wake of the global financial crisis of 2008 to enable IMF member states to respond quickly and effectively to temporary balance of payment needs resulting from external shocks. Both credit lines offer immediate access to considerable sums—over 10 times a country’s IMF quota in some cases with no (FCL) or very limited (PLL) conditionality. This paper addresses four misconceptions (or ‘myths’) that have likely played a role in the limited utilization of the two precautionary credit lines: 1) too stringent qualification criteria that limit country eligibility; 2) insufficient IMF resources; 3) high costs of precautionary borrowing; and 4) the economic stigma associated with IMF assistance. We show, in fact, that the pool of eligible member states is likely to be seven to eight times larger than the number of current users; that with the 2016 quota reform IMF resources are more than adequate to support a larger precautionary portfolio; that the two IMF credit lines are among the least costly and most advantageous instruments for liquidity support countries have; and that there is no evidence of negative market developments for countries now participating in the precautionary lines.
  • Topic: International Trade and Finance, Global Political Economy
  • Political Geography: Global Focus
  • Author: Nora Lustig
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: Current policy discussion focuses primarily on the power of fiscal policy to reduce inequality. Yet, comparable fiscal incidence analysis for 28 low and middle income countries reveals that, although fiscal systems are always equalizing, that is not always true for poverty. In Ethiopia, Tanzania, Ghana, Nicaragua, and Guatemala the extreme poverty headcount ratio is higher after taxes and transfers (excluding in-kind transfers) than before. In addition, to varying degrees, in all countries a portion of the poor are net payers into the fiscal system and are thus impoverished by the fiscal system. Consumption taxes are the main culprits of fiscally-induced impoverishment. Net direct taxes are always equalizing and indirect taxes net of subsidies are equalizing in nineteen countries of the 28. While spending on pre-school and primary school is pro-poor (i.e., the per capita transfer declines with income) in almost all countries, pro-poor secondary school spending is less prevalent, and tertiary education spending tends to be progressive only in relative terms (i.e., equalizing but not pro-poor). Health spending is always equalizing but not always pro-poor. More unequal countries devote more resources to redistributive spending and appear to redistribute more. The latter, however, is not a robust result across specifications.
  • Topic: International Trade and Finance, Global Political Economy
  • Political Geography: Global Focus
  • Author: Ali Enami, Nora Lustig, Rodrigo Aranda
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income remains unchanged. We show that in a world with more than a single fiscal instrument, the simple rule that progressive taxes or transfers are always equalizing not necessarily holds, and offer alternative rules that survive a theoretical scrutiny. In particular, we show that the sign of the marginal contribution unambiguously predicts whether a tax or a transfer is equalizing or not.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Global Focus
  • Author: Nora Lustig, Margarita Beneke, José Andrés Oliva
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: We conducted a fiscal impact study to estimate the effect of taxes, social spending, and subsidies on inequality and poverty in El Salvador, using the methodology of the Commitment to Equity project. Taxes are progressive, but given their volume, their impact is limited. Direct transfers are concentrated on poor households, but their budget is small so their effect is limited; a significant portion of the subsidies goes to households in the upper income deciles, so although their budget is greater, their impact is low. The component that has the greatest effect on inequality is spending on education and health. Therefore, the impact of fiscal policy is limited and low when compared with other countries with a similar level of per capita income. There is room for improvement using current resources.
  • Topic: International Trade and Finance, Poverty, Income Inequality
  • Political Geography: El Salvador
  • Author: Mikkel Barslund, Matthias Busse
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: The British economy has always been able to rely on a continuous inflow of high-skilled workers from the rest of the EU and the UK is currently home to over three million EU citizens and. As a result of the UK’s decision to leave the European Union, however, the image of the UK in the eyes of foreign workers may have become tarnished. By using LinkedIn data, the authors of this study analyse the movements of IT professionals between the EU and the UK and thereby illustrate what is at stake for the UK, as exemplified by this particular ‘shortage sector’. LinkedIn data show that on an annual basis the UK gains over 6,000 IT experts more than it loses to the EU. Moreover, these mobile IT professionals tend to be much more qualified than domestic IT experts are. This reliance on the EU for IT recruitment – one in ten new hires comes from the EU – suggests that even if the UK is not aiming to restrict high-skilled immigration, curbing overall immigration could have unintended negative consequences for its capability to attract talented EU nationals in the future. The UK government should perhaps bear this in mind during negotiations with the EU27.
  • Topic: Science and Technology, Brexit
  • Political Geography: Europe
  • Author: Daniel Gros
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Exiting from unconventional monetary policies is now a key issue for central banks, and especially for the US Federal Reserve. This paper argues that the Fed already began this exit some time ago, and that the relevant part of its balance sheet has already shrunk by about one-quarter of GDP. Pursuing the current policy of reinvesting would lead to a full exit within ten years.
  • Topic: International Affairs, Global Political Economy
  • Political Geography: America
  • Author: Raphaëlle Mathieu-Bédard
  • Publication Date: 04-2017
  • Content Type: Working Paper
  • Institution: European Centre for Minority Issues
  • Abstract: Indigenous peoples and minorities throughout the world have endeavoured for centuries to rid themselves from colonialism and oppression, while governments struggle to recognize indigenous and minority rights and minorities’ rightful standing in society. Varied approaches have been adopted, with varying degrees of success – but much can be learned from past and current victories and mistakes. Both in Canada and in the United States, the federal governments have historically held exclusive and virtually unlimited authority over their indigenous populations. Yet, based on divergent interpretations of the ‘doctrine of discovery’, the two countries have long developed differing policies regarding the self-government of their indigenous[i] nations, inevitably influencing their respective indigenous self-determination movements and the emergence of indigenous, non-territorial institutions.
  • Topic: Minorities, International Development
  • Political Geography: America, Canada
  • Author: Alexander Osipov, Hanna Vasilevich
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: This text discusses the structure and content of diversity policy in the so-called Transnistrian Moldovan Republic (TMR), an unrecognized state that broke away from Moldova during the collapse of the Soviet Union. The case of Transnistria is particularly useful as an example for analyzing the origins, structure, contents and effects of the post-Soviet ethno-cultural policy in a comparative perspective. Moreover, the model of Transnistrian state- and nation-building, since it is not explicitly based on privileging a core ethnicity, differs from nearly all countries and de facto states of the post-communist space. The working paper describes the TMR normative framework pertinent to the management of ethnic and linguistic diversity and analyzes the patterns of its implementation. The authors analyze the reasons why ethnic diversity has never been a challenge to the Transnistrian statehood and its stability while different ethnicities and languages are treated differently. The Transnistrian phenomenon is also considered from the perspective of the effectiveness and efficiency of post-Soviet diversity policies.
  • Topic: International Relations, International Affairs
  • Political Geography: Soviet Union
  • Author: David Smith, Mariana Semenyshyn
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: European Centre for Minority Issues
  • Abstract: The paper argues firstly that, since there is no obvious separatist movement within Zakarpattya, the Ukrainian state should seek as far as possible to accommodate Hungarian identity claims within the region (and those of other smaller minority communities living within the state) as part of a normative and instrumental strategy of promoting ‘unity in diversity’. Secondly, it argues that Ukraine’s current concept of decentralization offers space to realise the non-territorial vision of cultural autonomy, provided that sufficient attention is also given to maintaining pre-existing territorially-based provisions with regard to minority language use and political representation for Hungarians at both regional and national level.
  • Topic: International Affairs
  • Political Geography: Ukraine
  • Author: Sandro Knezović, Maja Grošinić
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Institute for Development and International Relations (IRMO)
  • Abstract: The phenomena of migrations is becoming increasingly relevant in the contemporary period. It is acquiring a growing impact on current geographical, demographic, anthropologic, economic, historical, cultural, political and other determinants of nowadays’ life. Hence, it is quite clear that the very issue of migrations represents a multidisciplinary field of research. Every migration includes territorial mobility, however not all of them can be regarded as migrations. This complex phenomenon is obviously a subject to different interpretations, depending on the aspect of it that is taken into consideration. The spatial aspect divides the migration into intra-state and international, but also long-distance and short-distance. Furthermore, the character of migrations is multiplying its complexity over the course of time. As an illustration, contemporary migrations verge from internal and external, voluntary and forced, political and economic, etc.
  • Topic: Migration
  • Political Geography: Croatia
  • Author: Višnja Samardžija
  • Publication Date: 07-2017
  • Content Type: Working Paper
  • Institution: Institute for Development and International Relations (IRMO)
  • Abstract: The Institute for Development and International Relations – IRMO has published the book by Višnja Samardžija, Hrvoje Butković and Ivana Skazlić entitled Industrial Relations in Croatia and Impacts of Digitalisation on the Labour Market. This publication is a result of research activities carried out in Croatia within the project ‘Industrial relations in Central and Eastern Europe: Challenges ahead of economic recovery’ supported by the European Commission (vs/2016/0101) which was implemented between April 2016 and September 2017. The project analysed the existing industrial relations practices in six selected EU Member States (Bulgaria, Romania, Croatia, Estonia, Poland, and the Czech Republic) and one candidate country (FYR Macedonia) in the period of economic recovery in order to formulate recommendations in this field. This publication provides the newest insights about development of the existing practice of industrial relations in Croatia attained through research of primary and secondary sources for the post 2012 period. The aim was to deepen the existing knowledge about industrial relations, but also to analyse possibilities for the future development of industrial relations in Croatia in the context of an emerging digital economy which already has profound implications on the labour market.
  • Topic: Digital Economy
  • Political Geography: Croatia
  • Author: Spiros Bamiatzis
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: Europe, and most importantly, Western Europe has become a fertile ground for ISIS recruits. Western Muslim Europeans have been making the trip to Syria and Iraq, filling in the ranks of ISIS, and back. Western intelligence agencies are faced with multiple challenges: what is the level of threat those war hardened returned fighters represent to public safety? Can these returned jihadists become de- radicalized and re-enter the society, without killing anybody that does not agree with their ideology? The purpose of this study is to present to counter-terrorism policy makers, the reasons Western European Muslims born and converted become radicalized, by presenting the psychological factors that contribute to the radicalization of the Western European Youth, towards jihadism. Furthermore, by using the Freudian splitting of the Id, the Ego, and the Superego, it examines how Muslim extremists using tenants of the Muslim faith are influencing the psychic of the youth toward radicalization, as the only true expression of the Muslim faith. This study also examines, how fundamentalism impacts the minds of “believers” and castigates everybody else that is considered a “non-believer”, while influencing the path of a young mind towards his or her becoming the defender of the Ummah, or the Muslim community at large. Finally, what lessons security agencies can learn and apply towards, before a youth becomes radicalized and then jihadist and makes the trip to ISIS fold, and after the return of the well grown jihadist by now, back to European society.
  • Topic: Terrorism, Violent Extremism
  • Political Geography: Europe
  • Author: Alexandros Mallias
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Hellenic Foundation for European and Foreign Policy (ELIAMEP)
  • Abstract: Ambassador (retired) Alexandros Mallias analyses the perspectives for improving the relations between Greece and the former Yugoslav Republic of Macedonia the day after the formation of a new Government in Skopje. Alexandros Mallias , who was first Head of Mission of Greece to Skopje ,1995-1999, suggests that the two governments should not raise high expectations .They should work to enhance and expand the Confidence Building Measures' Process and rather opti for a quiet diplomacy on the name issue He stresses that fYROM's 1991 Constitution is a bad one ,being the root cause of problems with its neighbors as well as of the endemic interethnic conflict.It was already amended 30(thirty) times within 15 years .He is of the opinion that there are still some extra miles to go.
  • Topic: International Relations, International Affairs
  • Political Geography: Macedonia
  • Author: Stephen Hallbrook
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Independent Institute
  • Abstract: From the founding of the Republic until the late twentieth century, rifles and other long guns were not subject to public controversy. At the end of that period, the words “assault weapon” appeared as a derogatory term in efforts to ban semi-automatic rifles. Handguns had previously been the primary target of gun prohibitionists, but the Supreme Court held in District of Columbia v. Heller that handguns are commonly possessed by law-abiding persons for lawful persons and are thus protected by the Second Amendment right to keep and bear arms.
  • Topic: Arms Control and Proliferation
  • Political Geography: America
  • Author: Art Carden
  • Publication Date: 07-2017
  • Content Type: Working Paper
  • Institution: Independent Institute
  • Abstract: First-user appropriation of private property is defensible on several grounds, and it meets Locke’s “enough, and as good” proviso by actually providing “more, and better” and by creating an institutional context in which objects can be defined as goods. This essay considers Locke’s prohibition against waste and argues that private property and exchange also allow us to define what it means for something to be “wasted” by conveying useful knowledge about alternative uses of resources to their owners.
  • Topic: Privacy, Political and institutional effectiveness
  • Political Geography: Global Focus
  • Author: Art Carden
  • Publication Date: 05-2017
  • Content Type: Working Paper
  • Institution: Independent Institute
  • Abstract: Whether something is a “resource” emerges from its ability to satisfy wants, which in turn emerges from appropriation and exchange. Without taking an object out of the commons, assuming a right over it, and experimenting, we can’t know how much is “enough, and as good.” Appropriation brings objects into a knowledge-generating process that helps us know what “enough, and as good” means. Egalitarian objections to appropriation are also overstated in that the latecomers rather than the original appropriators are the ones who get to enjoy the cornucopia that a society based on private property and exchange has produced. I am grateful to my colleague William Collins and our students in a Jan Term 2016 special topics course at Samford University for conversations and discussions that motivated this paper and to Michael Munger, James Otteson, David Schmidtz, and participants in the “Future of Classical Liberalism” conference at the University of Chicago Law School in May 2016 for comments and suggestions. Seminar participants at Hampden-Sydney College, Geoffrey Lea in particular, also provided useful comments, and students in the 2017 version of the aforementioned Jan Term course provided useful comments as the final version of the paper neared completion. All errors are mine.
  • Topic: Political Theory
  • Political Geography: Global Focus
  • Author: Daniele Fattibene, Margherita Bianchi
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The extremely unequal distribution of food worldwide has generated a paradox: while almost a billion citizens do not have access to healthy food, a part of the global population can afford to buy food in excess and – more importantly – generate enormous food losses and waste (FLW), with high economic, environmental and social costs. The EU has been working to find a comprehensive solution to this problem, with the aim of changing the current paradigm that tolerates good food being allowed to rot away. This paper explores the opportunities deriving from the latest EU efforts against FLW and, in particular, the Circular Economy Package, which includes waste legislation that is in line with UN goals on sustainable development. Several gaps have yet to be filled, but the mix of ambitious European and domestic laws, virtuous practices on the part of private companies, and a radical change in consumers’ habits are key to giving back to food the value it deserves.
  • Topic: Food Security
  • Political Geography: Global Focus
  • Author: Eva Maria Resch
  • Publication Date: 06-2017
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Between the summer of 2015 and 2016 Turkey experienced the most violent year of the Kurdish con ict since 1999. The outbreak of the Syrian war, together with domestic Turkish politics, have had a crucial impact on the reconciliation process between the Turkish government and the Kurdish minority in Turkey. With a special focus on the battle of Kobane and the related increase in power of the Democratic Union Party (PYD), the Syrian branch of the Kurdistan Workers’ Party (PKK), this paper examines how events tied to the Syrian civil war modi ed the cost-bene t calculus of both Turkey and the PKK, leading to a collapse of peace talks and a renewed outbreak of the con ict.
  • Topic: International Cooperation, International Affairs
  • Political Geography: Syria