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).

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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

Disappearing Middle or Vanishing Bottom?–A reply

From the administrative data of the Australian Department of Family and Community Services it is found that a large proportion of Disability Support Pension (DSP) recipients transferred from unemployment benefits. Among those who transferred to DSP from unemployment benefits, a large proportion experienced multiple spells of income support receipt prior to the transition and a majority had more than a half-year pre-transition unemployment duration, with the average pre-transition unemployment duration being more than one year. These findings suggest that the unemployment benefit is not simply a‘hold-on’ benefit for those who experienced the unemployment—DSP transition. This article further examines what factors are associated with the transition. It is found that, among other things, the probability of transition to DSP from unemployment increases with duration on unemployment benefits.

Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data

At the beginning of the 1980s the average income of an Australian Indigenous male was 50.5 per cent of his white counterpart. In the US the Indigenous income ratio was 58.3 per cent. By the end of the decade the relative income position of the two Indigenous groups had reversed. The Aboriginal income ratio increased 10 per cent and that of our sample of Native American men decreased 17 per cent. The paper documents the reasons for this change.

Welfare and Economic Progress of Indigenous Men of Australia and the US 1980–1990*

Food price increases and the introduction of radical social welfare and enterprise reforms during the 1990s generated significant changes in the lives of urban households in China. During this period, urban poverty increased considerably. This chapter uses household level data from 1986 to 2000 to examine what determines whether households fall below the poverty line over this period and investigates how the impact of these determinants has changed through time. We find that large households and households with more non-working members are more likely to be poor, suggesting that perhaps the change from the old implicit price subsidies, based on household size, to an explicit income subsidy, based on employment, has worsened the position of large families. Further investigation into regional poverty variation indicates that over the 1986-93 period food price increases were also a major contributing factor. Between 1994 and 2000, the worsening of the economic situation of state sector employees contributed to the poverty increase.

https://www.econstor.eu/bitstream/10419/63489/1/521395844.pdf

China’s Urban Poverty and its Contributing Factors, 1986–2000

In this paper, the author focuses on labour market and economic reforms and their impact on economic growth, employment and wage outcomes in the longer term. To make the task more manageable the paper described the economic growth experiences of four English speaking countries. The author looks at the impact of the Tatcher reforms in the UK, the Douglas Reforms in New Zealand, and the Hawke Accord period and subsequent labour market reform in Australia. The US is taken as a comparison country that has not been subject to substantial shifts in government introduced labour market and economic reforms, except, perhaps, in area of immigration and very recently in the area of welfare reforms.

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Robert Gregory

Papers

Disappearing Middle or Vanishing Bottom?–A reply

Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data

Welfare and Economic Progress of Indigenous Men of Australia and the US 1980–1990*

China’s Urban Poverty and its Contributing Factors, 1986–2000

Labour market outcomes in the UK, NZ, Australia and the US: observations on the impact of labour market and economic reforms