IMMIGRATION, ENDOGENOUS SKILL BIAS OF TECHNOLOGICAL CHANGE, AND WELFARE ANALYSIS

2020 ◽  
pp. 1-38
Author(s):  
Gonca Senel
Keyword(s):  
Standard Model ◽  
Production Technology ◽  
Skilled Labor ◽  
Large Set ◽  
Technology Choice ◽  
Skill Intensity ◽  
Long Run ◽  
The Standard Model ◽  
Skilled Immigration ◽  
Short Run

This paper investigates the long-run effects of immigration on wages and welfare in a model with endogenous technology choice (ETC) where firms are allowed to choose their optimal skill intensity from a menu of available technologies. I embed the ETC framework into the Auerbach and Kotlikoff model (1987) that features a large set of overlapping generations, a rich collection of population dynamics, and a social security system. I calibrate the model to match with the U.S. data and evaluate the effect of ETC with the help of two experiments. In the first experiment, I increase the share of high-skilled immigrants and compare the wage and welfare predictions of the model with ETC to a standard model where the skill intensities in production technology are fixed. In the standard model, since the skill intensities are constant, increase in the supply of high-skilled labor leads to a decrease in high-skilled wages and an increase in low-skilled wages. On the other hand, in the model with ETC, negative supply-side effects are counterbalanced by an increase in the intensity of the more abundant high-skilled labor, leading to a smaller decrease in their wages. The discrepancy between wage predictions of these two models is also reflected in the welfare: while the model with ETC predicts an increase in both high- and low-skilled natives’ welfare, the standard model would predict a decrease in the welfare of the high skilled and a larger increase in the welfare of the low skilled. In the second experiment, I examine the effects of an increase in low-skilled immigration and find that in this case, since the initial production technology is low-skilled intensive, the ETC effects are smaller. These results imply that if ETC is ignored, both in the short run and long run, wage and welfare analyses of immigration will be incomplete, and even misleading.

Cointegration and Structural Breaks in German Employment – An Error-Correction Interpretation / Kointegration und Strukturbrüche in der deutschen Beschäftigung – Eine Fehlerkorrektur-Auslegung

1997 ◽  
Vol 216 (2) ◽  
Author(s):  
Ansgar Belke ◽  
Matthias Göcke
Keyword(s):  
Standard Model ◽  
Unit Root ◽  
Structural Breaks ◽  
Structural Break ◽  
Adjustment Process ◽  
Economic Shocks ◽  
Equilibrium Relation ◽  
Long Run ◽  
The Standard Model ◽  
Ex Ante

SummaryIn order to differentiate between unit root-persistence and structural break-hysteresis we estimate two types of cointegration models for West German employment. The standard model is compared with a model including structural breaks in the long-run relation between employment and its determinants. Our estimation shows that persistence is probably attributed to structural breaks in the long-run relation and not to a degenerating adjustment process. Thus, a unit root in the standard model possibly reveals a misspecification in the form of an ex-ante exclusion of the possibility of structural breaks in the equilibrium relation due to serious economic shocks.

scholarly journals Assessing the Impact of Skilled Labor on Output Growth in South Africa: An ARDL Bound Testing Approach

2018 ◽  
Vol 10 (2) ◽  
pp. 209
Author(s):  
Tochukwu Timothy Okoli ◽  
Devi Datt Tewari ◽  
Eneh George N.O.
Keyword(s):  
South Africa ◽  
Skill Acquisition ◽  
Learning By Doing ◽  
Output Growth ◽  
Skilled Labor ◽  
Educational Attainments ◽  
Long Run ◽  
Short Run ◽  
Testing Approach ◽  
The Impact

Economic theory emphasized the necessity of skill acquisition and conservation as a precondition for growth. This paper investigates the extent to which skilled labor can contribute to output growth in South Africa in the long run. The theoretical framework employed was based on Hicks neutral augmented CobbDouglas production function to account for the impact of technological progress on labor and capital. Skilled labor was measured with three parameters of experience (learning-by-doing), special training and educational attainments. The methodology employed the ARDL bound testing approach and found that whereas there is no short run causality running from the independent variables to the dependent variable, there was a long run causality running from the measures of skilled labor to growth. The coefficient of the ECT was both significant and negative; therefore, the system gets adjusted towards their long run equilibrium steady state at the speed of 23 percent annually. This means that the measures of skilled labor contribute to growth in the long run to the tune of 23 percent annually. The study therefore recommends investments in human capital through education and special trainings as well as to encourage knowledge transfer through globalization and from one generation to another to conserve skills. 

scholarly journals Assessing the Impact of Skilled Labor on Output Growth in South Africa: An ARDL Bound Testing Approach

2018 ◽  
Vol 10 (2(J)) ◽  
pp. 209-218
Author(s):  
Tochukwu Timothy Okoli ◽  
Devi Datt Tewari ◽  
Eneh George N.O.
Keyword(s):  
South Africa ◽  
Skill Acquisition ◽  
Learning By Doing ◽  
Output Growth ◽  
Skilled Labor ◽  
Educational Attainments ◽  
Long Run ◽  
Short Run ◽  
Testing Approach ◽  
The Impact

Economic theory emphasized the necessity of skill acquisition and conservation as a precondition for growth. This paper investigates the extent to which skilled labor can contribute to output growth in South Africa in the long run. The theoretical framework employed was based on Hicks neutral augmented CobbDouglas production function to account for the impact of technological progress on labor and capital. Skilled labor was measured with three parameters of experience (learning-by-doing), special training and educational attainments. The methodology employed the ARDL bound testing approach and found that whereas there is no short run causality running from the independent variables to the dependent variable, there was a long run causality running from the measures of skilled labor to growth. The coefficient of the ECT was both significant and negative; therefore, the system gets adjusted towards their long run equilibrium steady state at the speed of 23 percent annually. This means that the measures of skilled labor contribute to growth in the long run to the tune of 23 percent annually. The study therefore recommends investments in human capital through education and special trainings as well as to encourage knowledge transfer through globalization and from one generation to another to conserve skills. 

scholarly journals The Dynamic Effects of Tax Audits

2021 ◽  
pp. 1-45
Author(s):  
Arun Advani ◽  
William Elming ◽  
Jonathan Shaw
Keyword(s):  
Standard Model ◽  
Tax Evasion ◽  
Dynamic Effects ◽  
Reporting Behaviour ◽  
Long Run ◽  
The Standard Model ◽  
Tax Returns ◽  
Additional Value ◽  
Audit Program ◽  
Compliance Behaviour

Abstract We study the effects of audits on long run compliance behaviour, using a random audit program covering more than 53,000 tax returns. We find that audits raise reported tax liabilities for five years after audit, effects are longer lasting for more stable sources of income, and only individuals found to have made errors respond to audit. 60-65% of revenue from audit comes from the change in reporting behaviour. Extending the standard model of rational tax evasion, we show these results are best explained by information revealed by audits constraining future misreporting. Together these imply that more resources should be devoted to audits, audit targeting should account for reporting responses, and performing audits has additional value beyond merely threatening them.

Indirect measurements in micro-space with the EM

1995 ◽  
Vol 53 ◽  
pp. 598-599
Author(s):  
Sterling P. Newberry
Keyword(s):  
Electron Microscope ◽  
Standard Model ◽  
Particle Physics ◽  
Information Storage ◽  
Storage Space ◽  
Indirect Measurements ◽  
Storage And Retrieval ◽  
Adequate Information ◽  
Compelling Reason ◽  
The Standard Model

At the 1958 meeting of our society, then known as EMSA, the author introduced the concept of microspace and suggested its use to provide adequate information storage space and the use of electron microscope techniques to provide storage and retrieval access. At this current meeting of MSA, he wishes to suggest an additional use of the power of the electron microscope.The author has been contemplating this new use for some time and would have suggested it in the EMSA fiftieth year commemorative volume, but for page limitations. There is compelling reason to put forth this suggestion today because problems have arisen in the “Standard Model” of particle physics and funds are being greatly reduced just as we need higher energy machines to resolve these problems. Therefore, any techniques which complement or augment what we can accomplish during this austerity period with the machines at hand is worth exploring.

Migration and US agricultural competitiveness

2013 ◽  
Vol 10 (2) ◽  
pp. 159-179 ◽  
Author(s):  
Philip L. Martin
Keyword(s):  
Farm Workers ◽  
Easy Access ◽  
Foreign Born ◽  
Guest Workers ◽  
Long Run ◽  
Short Run ◽  
Lower Wage ◽  
The Government ◽  
The One

Agriculture has one of the highest shares of foreign-born and unauthorized workers among US industries; over three-fourths of hired farm workers were born abroad, usually in Mexico, and over half of all farm workers are unauthorized. Farm employers are among the few to openly acknowledge their dependence on migrant and unauthorized workers, and they oppose efforts to reduce unauthorized migration unless the government legalizes currently illegal farm workers or provides easy access to legal guest workers. The effects of migrants on agricultural competitiveness are mixed. On the one hand, wages held down by migrants keep labour-intensive commodities competitive in the short run, but the fact that most labour-intensive commodities are shipped long distances means that long-run US competitiveness may be eroded as US farmers have fewer incentives to develop labour-saving and productivity-improving methods of farming and production in lower-wage countries expands.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

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