Article Analysis Democracies Pay Higher Wages - 1073 Words

In the paper, â€Å"Democracies Pay Higher Wages,† which appeared in the August 1999 edition of The Quarterly Journal of Economics, Dani Rodrik examines the role played by democratic institutions in determining the wage level of manufacturing workers. The motivation for this question arises from the remarkable discrepancy between manufacturing wages in Mexico and the United States: in 1996 the labor productivity (measured in output per worker) in the United States was six times higher than that of Mexico in the same year, while manufacturing wage levels in the United States were twelve times higher than those in Mexico. Rodrik hypothesizes that the difference in wage levels between the United States and Mexico that is not explained by the difference in worker productivity may be due to differences in political institutions. After controlling for labor productivity, income levels and other possible explanatory variables, Rodrik concludes that there exists a positive, significant association between the extent of democratic rights in a country and the level of manufacturing wages, both across countries and within countries over time. Rodrik’s work contributes to the extensive corpus on the relationship between institutions and labor-market outcomes, as well as the economic consequences of political democracy; however, most research on the role of institutions focuses heavily on labor-market institutions, while most research on the consequences of political democracy examines itsShow MoreRelatedNetherlands Pestle1437 Words   |  6 PagesNetherlands Report (Combine PESTLE analysis issues) POLITICAL - Dutch government is a parliamentary democracy with the Queen as the Head of The State. However, the real power lies within the prime minister and the cabinet ministers. STRENGTHS ï‚Ÿ Flexible Dutch system allows import and export tax to be levied. ï‚Ÿ Attractive tax environment for investment ï‚Ÿ Dutch culture encourages foreign international companies ï‚Ÿ Free of corruption CURRENT WEAKNESS - UnstableRead MoreThe impact of the Bretton Wood Institutions on Human Development in Sub-Saharan Africa2622 Words   |  11 Pages The aim of the World Bank, on the other hand, is to advance reconstruction and promote longterm economic growth in less developed countries2. Ghana started to work with the IMF/World Bank in the sixties. Since then most of its governments, democracies as well as military dictatorships, have taken loans from the IMF/World Bank. So-called Structural Adjustment Programs (SAPs) have been applied on Ghana since 1983.3 These loans include a set of stabilisation measures that the creditor has to Read MoreGender Inequality Affects the Health of Women2179 Words   |  9 Pageseducation, trade, ill-health, employment and economic growth and trades in gender inequality. There are many reasons to be concerned about existing gender inequalities in important well-being related dimensions such as education, health, employment or pay. Gender inequalities are problematic as they lower well-being and are a form of injustice in most conceptions of equity of justice (Klasen, 2002). A summary of my findings in the literature are listed in appendix 1. Trends in Gender Inequality ARead MoreFoxconn Suicides3088 Words   |  13 PagesSuicides at Foxconn (A causal analysis) MBAMGT-665 International amp; Cross-Cultural Management Fall 2010 Contents Introduction 2 Wages and Working Hours 2 Workers were kept uninformed about wage increase plan 2 Basic wage is just slightly more than minimum wage and far below living wage 2 Excessive overtime 2 Deduction of overtime premium 2 Frequent change of work shifts 2 Management 2 Punishments 2 Extensive work pressure 2 Reward system 2 Trade Unions 2 Health and Safety 2 StudentRead MoreShaping a Path for Growth and Prosperity in Nova Scotia2195 Words   |  9 Pagesopportunities and challenges facing the province and the steps needed to enhance the climate for growth in the province. As I have read through the Economic advisory panel, this is some of the challenges the province is facing: Increased competition from low wage producers elsewhere and employment losses in communities beyond Halifax and this has resulted in the loss of population, the migration from rural to urban areas of the provinces and even to migration to other parts of Canada and beyond Lack of GovernmentRead MoreThe Need For A Less Volatile Response For Illegal Immigration1978 Words   |  8 Pagesrepresents a responsible minority that demonstrates respect and compliance with American policies. According to the article, â€Å"Immigration Benefits America†, written by Steven Gold, statistics indicate that crime rates within unauthorized populations are actually lower than those of the native-born (3). In addition, between â€Å"one-half and three-fourths of unauthorized immigrants pay state and federal taxes†, illustrating that immigrants pose very little danger to society (Ewing 5). Those who blithelyRead MoreRicardo Semler Semco: the Self-Managed Entreprise3880 Words   |  16 Pages1980, he made radical actions, by introducing three essential values that are harmoniously synched together and spread out into more than 30 management programs. These actions undertaken were based on three main principles of: democracy, profit sharing, and information . Democracy corresponds to employee involvement and Semler; in order to able to build a real participatory management, had to overcome four main obstacles: size, hierarchy, motivation, and ignorance (Semler, 1989). The main elements ofRead MoreSociology : How Human Action And Consciousness Shape The Surrounding Of Cultural And Social Culture1734 Words   |  7 Pagessocial trends such as changes in the age of populations. They also examine the government’s efforts to reduce crimes. During the 1700’s, Europeans entered into a historical era called modernity. Modernity can be defined as a characterized growth of democracy and personal freedom, increased reliance on reason and science to explain natural and social worlds, a shift toward an urban industrial economy. During the Middle Ages, religious explanations of natural and social worlds have dominated intellectualRead MoreBrazil Under Lula: Off the Yellow Bric Road Essay examples1761 Words   |  8 PagesQuestion 1: 1. Situation Analysis Brazil is being considered as a growing economy. In fact the country, one of the BRIC nations is seen by analyst of Goldman Sachs as one of the five nations that will be at the top of all nations with regard to a country`s GDP (The Goldman Sachs Group Inc., 2007). To understand Brazil`s current situation and how the country may be able to grow out of this position as a global player in the near future aiming a better globalization of the country by the yearRead MoreBrazilian Laws Do Not Fully Address The Issues Of Domestic Work2760 Words   |  12 Pagesand not the public sphere. The low status of domestic work in Brazil is a primary example where women make up 94.3 percent of all domestic workers; 61.8 percent of them are Afro-Brazilians and 64 percent have little to no education. Through the analysis of Brazilian policy responses to domestic work, this paper will show that Brazilian laws do not fully address the issues of domestic work, mainly because it does not address the comp lex makeup of domestic work and workers. A large percentage of