New Economics Papers
on Law and Economics
Issue of 2010‒02‒20
four papers chosen by
Jeong-Joon Lee, Towson University

  1. The Effect of Birthright Citizenship on Parental Integration Outcomes By Ciro Avitabile; Irma Clots-Figueras; Paolo Masella
  2. China's Labour Market in Transition: Job Creation, Migration and Regulation By Richard Herd; Vincent Koen; Anders Reutersward
  3. Property Rights and Parliament in Industrializing Britain By Daniel Bogart; Gary Richardson
  4. Environmental Inspection Proclivity and State Manufacturing Growth: The US Experience from the 1990s By Christopher S. Decker; John W. Maxwell

  1. By: Ciro Avitabile (Università di Napoli Federico II and CSEF); Irma Clots-Figueras (Universidad Carlos III de Madrid); Paolo Masella (University of Mannheim)
    Abstract: This paper provides empirical evidence on whether child legal status at birth affects the level of cultural integration of immigrant parents with native community. We consider the 1999 reform of the German nationality law, which introduced birthright citizenship for children born in Germany to non-German citizen parents. Our results show that changes in the rules that regulate child citizenship have significantly increased parents’ propensity to establish contacts with German citizens and use the German language. The effect on parents’ integration varies according to the initial endowment of human capital and the level of integration in their local ethnic community.
    Keywords: Citizenship Status, Migration, Integration
    JEL: K40 J15
    Date: 2010–02–09
  2. By: Richard Herd; Vincent Koen; Anders Reutersward
    Abstract: Over the past decade, the share of jobs not controlled by the state has increased considerably, whilst employment in agriculture has declined, against the backdrop of ongoing urbanisation. Over 200 million people have been drawn into urban areas through official or unofficial migration, despite various obstacles to labour mobility, including the registration system and the associated restrictions to social service access. New labour laws were introduced in 2008 to better protect employees in a market now dominated by private-sector employers, notably via more systematic use of and adherence to written labour contracts, in particular of indefinite duration ones. To what extent the new legislation and implementing regulations will be enforced remains to be seen. For the time being, de facto employment protection is far less than de jure, with an enduring preponderance of fixed-term contracts, involving few restrictions. Minimum wages are set locally and have not kept up with average wages, nor are they effectively enforced. During the recent slowdown, average wages adjusted rapidly and employment was soon on the rise again. However, this episode also highlighted the need to integrate migrants better, not least by relaxing registration rules.<P>Le marché du travail chinois en transition : création d’emplois, migrations et régulation<BR>Au cours des dix dernières années, la proportion d’emplois non contrôlés par l’État a augmenté considérablement, tandis que les possibilités de travail dans le secteur de l’agriculture s’amenuisaient sur fond d’urbanisation ininterrompue. Plus de 200 millions de personnes ont migré – officiellement ou non – vers des zones urbaines, en dépit des nombreux obstacles qui freinent la mobilité de la main-d’oeuvre, notamment le système d’enregistrement et les contraintes qu’il impose en matière d’accès aux services sociaux. Depuis 2008, le marché du travail est soumis à de nouvelles réglementations, visant à assurer aux employés une meilleure protection sur un marché aujourd’hui dominé par les employeurs du secteur privé : on soulignera le recours plus systématique au contrat de travail écrit, et en particulier au contrat de durée indéterminée. On ignore encore dans quelle mesure seront respectées la nouvelle législation et les modalités d’application. Pour l’heure, la protection réelle des employés est très inférieure à ce que prévoit le droit, et les contrats les plus répandus restent les contrats de durée déterminée qui offrent peu de protection. Le montant du salaire minimum est fixé au niveau local, sans référence au salaire moyen, et n’est d’ailleurs pas effectivement respecté. Dans la récente période de ralentissement économique, les salaires moyens ont été ajustés rapidement et l’emploi a connu une embellie. Toutefois, cet épisode a également mis en lumière la nécessité d’une meilleure intégration des migrants, notamment par un assouplissement des modalités d’enregistrement.
    Keywords: unemployment, employment, social services, China, minimum wage, labour market, access, hukou, contracts, urbanisation, chômage, marché du travail, emploi, salaire minimum, Chine, hukou, contrats, urbanisation, accès aux services sociaux
    JEL: E24 J21 J23 J24 J31 J41 J42 J61 J63 J65 J71 J82 J83 K31 O53 P23 R23
    Date: 2010–02–01
  3. By: Daniel Bogart; Gary Richardson
    Abstract: During Britain’s industrialization, Parliament operated a forum where rights to land and resources could be reorganized. This venue enabled landholders and communities to exploit economic opportunities that could not be accommodated by the inflexible rights regime inherited from the past. In this essay, historical evidence, archival data, and statistical analysis demonstrate that Parliament increased the number of acts reorganizing property rights in response to increases in the demand for such acts. Tests with placebo groups confirm the robustness of this result. This evidence indicates that Parliament responded elastically to changes in the public’s demand for reorganizing property rights. Parliament’s efforts to adapt property rights to modern economic conditions may have accelerated Britain’s economic ascent
    JEL: K0 K11 K4 L9 N33 N43 N53 N7 N9 O13 O2 O25 O52 P1 P14 P16 P17 P26 P48 R14 R38 R4 R52
    Date: 2010–01
  4. By: Christopher S. Decker (Department of Economics and Real Estate, College of Business Administration, University of Nebraska at Omaha); John W. Maxwell (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)
    Abstract: In this paper we construct a ranking of states based on their proclivity to inspect facilities for environmental compliance. Our measure utilizes state-level inspections data supplied by the US Environmental Protection Agency. After developing our ranking, we use it to predict state-level growth in manufacturing establishments. In doing so, we find support for the notion that enforcement intensity adversely impacts such growth. Our results offer insight into why existing studies that examine the impact of environmental regulation on location and growth produce inconsistent results.
    Keywords: Monitoring and Enforcement, Environmental Regulations, Business Formation Growth
    JEL: K32 Q28 R58
    Date: 2010–01

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