The objective of this chapter is to discuss recent developments in the literature that studies
how the dynamics of earnings and wages affect consumption choices over the life cycle.
Labor economists and macroeconomists are the main contributors to this area of research.
A theme of interest for both labor economics and macroeconomics is to understand how
much risk households face, to what extent risk affects basic household choices such as
consumption, labor supply and human capital investments, and what types of risks matter
in explaining behavior.
The financial sectors in South Asia Region (SAR) are dominated by commercial banks, which account for the vast majority of the financial system s assets. The domestic debt markets including the government bond and corporate bond markets are at an early stage of development and there are few institutional investors. In recent years, countries in SAR have attempted to develop local debt markets, although the pace of development remains uneven and slow due to many regulatory and institutional impediments....
The creation of quick jobs, as opposed to training, often results in the
creation of too many bricklayers, often of not very good caliber. So
that when the fund goes, people are no more able to get a good job
Sometimes there is a contradiction between building quality projects
and using local labor, because when asked, municipalities often want
quality projects. And yet bilateral and multilateral agencies say they want
local labor to be employed.
Finally, there are some environmental issues.
Incoming data on the labor market have remained disappointing. Private-sector
employment has grown only sluggishly, the small decline in the unemployment rate is
attributable more to reduced labor force participation than to job creation, and initial
claims for unemployment insurance remain high. Firms are reluctant to add permanent
employees, citing slow growth of sales and elevated economic and regulatory
Inventories are valued at the lower of cost or market value less advance payments on work
in process. The cost of inventories comprises all costs of purchase, costs of conversion and
other costs incurred bringing the inventories to their present location and condition. The
costs of conversion of inventories include direct labor, fixed and variable production
overheads, product development and process development costs, taking into account the
stage of completion. The cost of inventories is determined using the first-in, first-out
(FIFO) method. Provision is made for obsolescence.
Rubber provides an interesting contrast. Large rubber plantations often opened areas by establishing
processing facilities, markets, and roads via settlement programs where locals or migrants provide labor
to establish the plantation and acquire land as outgrowers. In some cases, as in the FELDA program in
Malaysia and the Indonesian transmigration program, these were state sponsored.
Chapter 22 describe the extent of legal and illegal immigration into the United States; discuss why economists view economic immigration as a personal human capital investment; explain how immigration affects average wages, resource allocation, domestic output, and group income shares; relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local budgets; demonstrate how economics can inform current immigration discussions and attempts to reform immigration laws.
After completing this chapter, students will be able to: Describe the extent of legal and illegal immigration into the United States; discuss why economists view economic immigration as a personal human capital investment; explain how immigration affects average wages, resource allocation, domestic output, and group income shares; relate how illegal immigration affects employment and wages in low-wage labor markets and impacts state and local budgets; demonstrate how economics can inform current immigration discussions and attempts to reform immigration laws.