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Open access

Jasmine Boatner

Abstract

Background

Although unemployment rates are at historical lows, there is still a persistent gap between unemployment rates in black and white population. Some have proposed that part of the gap for men can be explained by the higher rate of criminal records in the black population.

Methods

This analysis aims to use negative binomial regressions and the detailed crime data available from the National Longitudinal Survey of Youth 1997 survey to determine if black men with criminal records appear to be the driving force behind the gap.

Results

The author finds that there are significant deviations in labor market outcomes depending on race and ethnicity, even when controlling for a criminal record and premarket skills.

Conclusions

Lowering the disproportionate rate at which black men are incarcerated will not in itself eliminate the unemployment gap between white and black men.

Open access

Duncan McVicar, Andrew Park and Seamus McGuinness

Abstract

This paper examines the impacts of the introduction of the UK National Minimum Wage (NMW) in 1999 and the introduction of the UK National Living Wage (NLW) in 2016 in Northern Ireland (NI) on employment and hours. NI is the only part of the UK with a land border where the NMW and NLW cover those working on one side of the border but not those working on the other side of the border (i.e., Republic of Ireland). This discontinuity in minimum wage coverage enables a research design that estimates the impacts of the NMW and NLW on employment and hours worked using difference-in-differences estimation. We find a small decrease in the employment rate of 22–59/64-year-olds in NI, of up to 2% points, in the year following the introduction of the NMW, but no impact on hours worked. We find no clear evidence that the introduction of the NLW impacted either employment or hours worked in NI.

Open access

Yigit Aydede and Atul Dar

Abstract

A growing wage gap between immigrant and native-born workers is well documented and is a fundamental policy issue in Canada. It is quite possible that wage differences, commonly attributed to the lower quality of foreign credentials or the deficiency in the accreditation of these credentials, merely reflect lower wage offers that immigrant workers receive due to risk aversion among local firms facing an elevated degree of asymmetric information. Using the 2006 and 2011 population censuses, this paper empirically investigates the effects of wage bargaining in labor markets on the wage gap between foreign- and Canadian-educated workers. Our results imply that a significant part of the wage gap between foreign-educated and Canadian-educated immigrant (and native-born) workers is not driven by the employers’ risk aversion but by differences in human capital endowments and occupational matching quality.

Open access

Kathryn Anne Edwards and Jeffrey B. Wenger

Abstract

The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this financial support is accompanied by adjustments to parental consumption, income, or savings behavior. With longitudinal data on mothers and children from the Panel Study of Income Dynamics, we use within-mother variation in behavior to identify the effect of a child’s labor market shock on parent outcomes. We find evidence of a decline in consumption, an increase in labor supply, and a decrease retirement savings, though the results are heterogenous among mothers. Our results point to aggregate inefficiencies and inequities that may result from family risk sharing.

Open access

Nicholas Wilson

Abstract

Standard labor market models predict that the likelihood of employment increases, hours worked increase, and individuals transition from less-skilled and temporary jobs to more skilled and more stable employment as they age. I examine the association between age and transactional sex work using national household surveys from Zambia, one of the few settings with general population surveys asking women about transactional sex and a relatively high documented prevalence of employment in transactional sex. My results indicate that the likelihood of employment in transactional sex sharply falls with age. Increased employment opportunities outside of transactional sex do not appear to explain the transactional sex employment-age profile and marital status appears to explain only a portion of it. These findings are consistent with the hypothesis that clients prefer younger transactional sex workers and suggest that policymakers implement interventions designed to reduce client demand for younger females.

Open access

Aloys Prinz

Abstract

Besides effects on economic well-being, migration of people with distant cultural backgrounds may also have large effects on people’s cultural identity. In this paper, the identity economics of Akerlof and Kranton (2000) is applied to migration. Accordingly, it is assumed that the utility of both the immigrants and the native population encompasses economic well-being and cultural identity. The migration effect on cultural identity depends, among others, on the distance between cultures. In a simple immigration game it is shown that immigrants may prefer to live rather in diaspora communities than to integrate into the host countries’ culture. This subgame-perfect equilibrium choice of immigrants seems the more likely the greater the cultural distance between their country of origin and the destination country is. Among the available policy instruments, restrictions on the freedom of movement and settlement of immigrants may be the most effective way to prevent the setup of large diaspora communities. For young immigrants and later generations of immigrants, integration via compulsory schooling is the most important policy. In general, cultural, religious and social institutions may support integration.

Open access

Janusz Kudła, Katarzyna Kopczewska, Agata Kocia, Robert Kruszewski and Konrad Walczyk

Abstract

To finance public expenditure a government needs to raise revenue, which mainly comes from taxes and borrowings. During a financial crisis, however, financing of budget deficit is particularly difficult because of a rise in debt servicing costs that crowd out other expenses and raise the concern for government solvency. In extreme cases, governments are constrained to tax, as borrowing opportunities are strictly limited or unavailable. Still, governments can choose from tax menu options (income and consumption taxes), given the flexibility of the tax mix. This article presents a long-term dynamic model of fiscal solvency that shows the equilibrium the revenue maximising government can obtain with reasonable tax rates when capital income can be shifted and there are constraints on the consumption tax. Specifically, the solution predicts a positive level of bonds in the long-term equilibrium and the tax rates dependent positively on the abundance of the tax bases.

Open access

Ivo Županović and Milica Vulević

Abstract

Adequate accommodation infrastucture is on of the basic conditions for sustainable tourism development. In order to improve accommodation infrastructure, particular addressing the problem of a large share of private accommodation in total infrastucture, it is proposed to transform these capacities indo condo model, diffused and integral hotels. Another major problem in tourism development in Montenegro is not an adequate structure of emissive markets, more precisely dominance of 2 markets. In order to improve emissive market infracture it is necessary to focus primarly on West European and Scandinavian market. Improving the situation of the mentioned problems would significaly affect the sustainable development of tourism in Montenegro.

Open access

Dijana Medenica Mitrović, Olivera Simović and Milica Raičević

Abstract

Trends in marketing are changing and adopting new technologies, but what always remains is good content and relevant data. New knowledge, information and use of new tools are often crucial for the success of a company. Modern business in the domain of personal marketing can no longer be efficiently implemented without the use of new e-technologies. The application of Internet technology implies radical changes in marketing (strategies, plans, programs, communication) that have contributed to the development of personal marketing, and thus improved “face to face” communication between bidders and consumers. The theoretical part of the paper refers to defining the role and importance of personalized marketing in the function of improving the business, especially from the aspect of approaching each customer or customer segment individually, as well as the importance of applying social networks to marketing, as well as the specificities and benefits of this type of marketing. The practical part in the focus has the research of the importance and role of social networks in the implementation of personalized marketing, as well as in the process of selecting a tourist destination. The practical part of the paper includes research through a specially designed questionnaire, conducted on the territory of Montenegro, and provides information on how important social networks are for selecting the tourist destination and the offer that a particular destination. The aim of the paper is to draw attention to the importance of a good e-market strategy, also, to the approach that gives the best results in advertising and the achievement of the results of the tourist destination and its offer, sales, communication with consumers, establishment of long-term relationships with consumers, which also affects improvement of the business of every tourist company in general.

Open access

Drago Cvijanović, Ivan Milojević and Milan Mihajlović

Abstract

The optimal procurement is achieved by monitoring them from the very beginning of the planning process. Procurement planning, as one of the basic functions of procurement management, determines the goals, tasks and the way of their realization. The realization of procurement plans is realized through the purchase function of business entities, both from the domestic and foreign markets.

The specifics of procurement of agro-industrial complex require continuity as a basic requirement. The importance of procurement consists in the fact that the level of reproductive capacity of the agro-industrial complex depends significantly on the normative organization, organization and quality of procurement. The goal of procurement is precisely, timely, quality and under the most favorable conditions, the acquisition of funds on the market, in order to meet the needs for the continuous operation of the companies from the agro-industrial complex.