The cleansing effect of the minimum wage in China

Florian Mayneris, Sandra Poncet 13 October 2014

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Can higher minimum wages ensure that economic development benefits the poorest without hindering growth? The question is controversial in both academic and policy circles. The recent riots in Bangladesh and Cambodia show that the social demand for a more equal distribution of the benefits of growth is high in developing countries. In China, polls reveal that concerns about inequality have grown as "roughly eight-in-ten have the view that the rich just get richer while the poor get poorer'' (Pewresearch Center 2012). The debate is also heated in developed economies.

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Topics:  Industrial organisation Labour markets

Tags:  China, wages, firms, productivity

Political reservations and women’s entrepreneurship in India

Ejaz Ghani, William Kerr, Stephen D O'Connell 02 October 2014

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India’s 73rd Constitutional Amendment Act, passed in 1992, encompassed a set of reforms implementing a nationally-standardised and decentralised system of local government. These reforms, also known as the Panchayati Raj, importantly required a one-third seat reservation for women among local governance bodies. A large body of research has shown distinct effects of including women in the political sphere in India, e.g.

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Topics:  Development Gender

Tags:  India, entrepreneurship, firms

DynEmp: New cross-country evidence on the role of young firms in job creation, growth, and innovation

Chiara Criscuolo, Peter N. Gal, Carlo Menon 26 May 2014

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Since well before the crisis, many OECD economies have been confronted with sluggish productivity growth. In the aftermath of the crisis, job creation has also stalled and has become an important policy issue. Business dynamics are at the core of the creative destruction process. Available evidence points to significant cross-country heterogeneity in the dynamism of businesses, even after taking into account differences in sectoral composition. This raises policymakers’ interest in understanding the role of framework conditions in this area.

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Topics:  Labour markets Productivity and Innovation

Tags:  R&D, employment, growth, OECD, job creation, business cycles, firms, start-ups

Why don’t African firms create more jobs?

Leonardo Iacovone, Vijaya Ramachandran 07 February 2014

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There is an urgent need for job creation in Africa. Many economies on the continent suffer high rates of under-employment and/or low-productivity employment. In addition, because of demographic factors, many countries anticipate that large numbers of youth will enter the workforce in the near future. This may be beneficial to economic growth but also a potential threat to social stability.

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Topics:  Development Labour markets

Tags:  Africa, firms, jobs

Preparing to export

Danielken Molina, Marc Muendler 27 May 2013

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Exporting is an essential feature of strategies for economic development for very good reasons. A large body of empirical evidence shows that exporters are larger, more productive, pay higher wages and hire more skilled workers (Bernard and Jensen 1995). But do firms move from local sales to export sales? What choices do firms make in preparation for exporting? How do these choices affect a firm’s future export performance?

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Topics:  Development

Tags:  Labour Markets, exports, firms

Stock market turnover and corporate governance

Alex Edmans, Vivian W Fang, Emanuel Zur 16 February 2013

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The stock market is a powerful tool for controlling corporation’s behaviour. But what is best:

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Topics:  Financial markets

Tags:  financial markets, liquidity, corporate governance, firms, stocks

Are services traded differently?

Andrea Ariu 23 December 2012

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International trade is traditionally thought of as goods crossing borders. Trade in services, however, is becoming increasingly important for high-income countries and its role is likely to grow substantially over the next years (Francois and Hoekman 2010).

Trade in services and goods differ along several critical dimensions (WTO 2010).

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Topics:  International trade

Tags:  Belgium, firms, trade in services

Firm organisation: What we know and why we should care

Laura Alfaro, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew Newman 02 December 2012

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A series of corporate calamities in the 2000s has helped to arouse suspicion amongst policymakers and the public that corporate organisation matters. Internal organisation issues are blamed for lost jobs, lost pensions and lost fortunes (e.g. Enron, Worldcom); for plane crashes in the US, lead-painted toys from China1, and, most devastatingly of all, the global crisis. These outcomes are increasingly ascribed to unaccountable managers, misaligned ownership structures, outsourcing and other internal organisation issues.

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Topics:  Industrial organisation International trade

Tags:  trade, protectionism, firms, firm organisation

The (re)location effects of enterprise zones

Thierry Mayer, Florian Mayneris, Loriane Py 28 September 2012

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Spatial inequalities within French municipalities are striking. Some depressed urban areas with low income, high unemployment rate, low level of education and deprived social housing are just a few blocks away from wealthy neighbourhoods. These urban disparities have important social and economic implications. They are often linked to social segregation and exclusion phenomena, with rich and poor people self-selecting into different neighbourhoods according to their willingness to pay for housing.

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Topics:  Industrial organisation

Tags:  France, firms, Enterprise zones

Firms reorganise to grow (by hiring workers that know and earn less)

Lorenzo Caliendo, Ferdinando Monte, Esteban Rossi-Hansberg 31 August 2012

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How do firms organise production? How does this organisation change as firms grow?

Business people deal with these questions all the time, and the academic literature has developed several strands of theories with answers that go from property rights over core resources to knowledge-based hierarchies (e.g. Hart and Moore 1990 and Garicano 2000). However, the ability of researchers to answer these questions with general empirical support has traditionally been hindered by lack of data.

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Topics:  Labour markets Productivity and Innovation

Tags:  growth, firms, production

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