This paper presents a theoretical analysis of the 'Dutch Disease': the phenomenon whereby a boom in one traded goods sector squeezes porfitability in other traded goods sectors, both by directly bi ...

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Booming Sector and De-Industrialisation in a Small Open Economy

Death is the new sex, last great taboo in Western society and Western medicine, as Richard Smith discusses in his editorial (p 129). In the trinity of births, marriages, and deaths, only death does not have glossy magazines devoted to stylish consumption at the attendant ceremonies. On the web, of course, …

Death and dying

THIS paper aims to consolidate a growing literature on booming sector economics and the Dutch Disease. The term Dutch Disease refers to the adverse effects on Dutch manufacturing of the natural gas discoveries of the nineteen sixties, essentially through the subsequent appreciation of the Dutch real exchange rate.' The paper is also intended to fill some theoretical gaps, notably in sections 5 (immigration), 6 (endogenous terms of trade effects), 7 (domestic absorption) and 10 (dynamics). The issues have been widely discussed in many countries, notably the oil exporters. The key article in the British discussion on the effects of North Sea oil is Forsyth and Kay (1980).2 Booming Sector models can also illuminate many historical episodes where there have been sectoral booms, with adverse general equilibrium effects on other sectors. Thus there is wide scope for application in economic history. For example, Forsyth and Nicholas (1983) have interpreted the consequences on Spanish industry of the inflow of American treasure in the sixteenth century in Dutch Disease terms. Cairnes (1859) recognised that the gold discoveries in Australia in the eighteen fifties had Dutch Disease effects on some Australian industries, and this episode has recently been studied in Maddock and McLean (1983).

/pdf/booming-sector-and-dutch-disease-economics-survey-and-496l2h3drv.pdf

Booming sector and dutch disease economics: survey and consolidation

http://faculty.smu.edu/millimet/classes/eco7321/papers/hartog 2000.pdf

Over-education and earnings: Where are we, where should we go?

This paper tests the hypotheses that overall wage compression and low female supply relative to demand reduce a country's gender pay gap. Using micro-data for 22 countries over the 1985-94 period, we find that more compressed male wage structures and lower female net supply are both associated with a lower gender pay gap. Since it is likely that labor market institutions are responsible for an important portion of international differences in wage inequality, the inverse relationship between the gender pay gap and male wage inequality suggests that wage-setting mechanisms, such as encompassing collective bargaining agreements, that provide for relatively high wage floors raise the relative pay of women, who tend to be at the bottom of the wage distribution. Consistent with this view, we find that the extent of collective bargaining coverage in each country is significantly negatively associated with its gender pay gap. Moreover, the effect of pay structures on the gender pay gap is quantitatively very important: a large part of the difference in the gender differential between high gap and low gap countries is explained by the differences across these countries in overall wage structure, with another potentially important segment due to differences in female net supply.

https://papers.ssrn.com/sol3/Delivery.cfm/nber_w8200.pdf?abstractid=265295&mirid=5

Understanding International Differences in the Gender Pay Gap

During the Chinese Cultural Revolution many schools stopped normal operation for a long time, senior high schools stopped student recruitment for up to 6 years, and universities stopped recruitment for an even longer period. Such large scale school interruptions significantly reduced the opportunity for a large cohort of individuals to obtain university degrees and senior high school qualifications. More than half of this cohort who would normally attain a university degree were unable to do so. We estimate that those who did not obtain a university degree, because of the Cultural Revolution, lost an average of more than 50 percent of potential earnings. Both genders suffered reduced attainment of senior high school certificates and more than 20 per cent prematurely stopped their education process at junior high school level. However, these education responses do not appear to have translated into lower earnings. In addition, at each level of education attainment most of the cohort experienced missed or interrupted schooling. We show, however, that given the education certificate attained, the impact on earnings of these missed years of schooling or lack of normal curricula was small.

Exploring the Impact of Interrupted Education on Earnings: The Educational Cost of the Chinese Cultural Revolution

Can economic theory explain why australian women are so well paid relative to their u.s. counterparts

Detiorating labour market conditions worsen the financial situation of the disabled, reduce the opportunity costs of disability benefit program participation, and increase the demand for the benefit; they may also lead the administrative authority to lower the eligibility criteria to accommodate the impact of worsening labour market conditions. This paper uses Australian aggregate data to shed light on the impact of labour market conditions on applications and grants of the Disability Support Pension (DSP) in Australia. The results provide supportive empirical evidence to the theory that worsening labour conditions increase applications and grants of disability benefits. The results also show that policy changes play an important role in the growth of the program.

Labour Market Conditions, Applications and Grants of Disability Support Pension (DSP) in Australia

The study examines whether the income opportunities of Native Americans over the 1980s improved in response to stronger aggregate job growth or deteriorated in response to declining wage and employment opportunities, particularly for the less-skilled. Using data from the 1980 and 1990 US Census on individuals aged 16–64, a methodology is presented to analyze the effect of changes in the income distributions of Native Americans and whites on the average Native American-white income ratio. Oaxaca-type decompositions are also used to yield insights into the role of economy-wide as opposed to Native American-specific effects on changes in income, hourly earnings and annual hours employed over the period. The study concludes that the economic circumstances of Native American men and women further deteriorated relative to whites over the decade, chiefly due to the declining valuation given to Native American human capital, particularly for men. An important finding of the study is the role of economy-wide vis-a-vis native-specific effects: almost all of the adverse movements in average hourly earnings against Native Americans can be attributed to changes in economy-wide hourly earnings structures (with the least-skilled being paid less), whereas the large fall in relative annual hours is due to changes specific to Native Americans.

Robert Gregory

Papers

Exploring the Impact of Interrupted Education on Earnings: The Educational Cost of the Chinese Cultural Revolution

Can economic theory explain why australian women are so well paid relative to their u.s. counterparts

Labour Market Conditions, Applications and Grants of Disability Support Pension (DSP) in Australia

The individual economic well-being of Native American men and women during the 1980s: A decade of moving backwards

Jobs and Gender: A Lego Approach to the Australian Labour Market