OPTIMIZING DEMOGRAPHIC DIVIDEND IN PERSPECTIVE OF RETURN ON EDUCATION IN EAST JAVA: TO SCHOOL, TO WORK, OR TO ENTREPRENEUR?

Human capital highly affects economics productivity. Thus, education plays an important factor in every demographic dividend. This study will estimate the return on education to paid-employment and self-employment in East Java using SAKERNAS 2012. Using Mincerian specification and Sohn model, this study analyzed the baseline model and to analyse further in self-employment. This study will also compare result in East Java with National and other Java province. Results from estimation found that return on education in East Java is generally higher than national, but lower than West Java. As for self-employment, return on education in East Java is lower than paid-employment, but in the lowest magnitude if compared with National and other Java region. Labor market flexibility that analyzed in this study also shows that East Java relatively more flexible. As a matter of opportunity cost, the low return rate of education in East Java demand some adjustment in education and labor market policy to optimize the economic outcome.

Extraterritorial Reference of China’s Labor Market Flexibility Adjustment

China’s labor market is facing a policy and legal dilemma of balanced flexibility and security adjustment. Under the condition of the continuous development of new economic conditions such as sharing economy and platform economy, the new employment pattern of the labor market presents new challenges to the current legal system. It is of great significance to optimize and perfect China’s existing labor policies and regulations by studying the experience of representative countries such as the United States, Japan, and Germany in labor market regulation and drawing on their scientific adjustment model.

Negotiating Flexibility with Security in Los Angeles’s In-Home Supportive Services

This chapter focuses on California's In-Home Supportive Services (IHSS). At the labor market level, both the Direct Funding Program (DF) in Ontario and the IHSS gave “consumers” the flexibility to hire their own “providers,” yet in IHSS the state was more involved in the employment relationship because it paid the provider rather than giving funding directly to the consumer. Many elderly IHSS consumers hire family, but when family is not available, immigrant seniors hire others from their language and ethnic group, and this goes for Pilipinx. Like in DF, labor market flexibility shaped negotiations in the labor process, but in IHSS it shaped it differently. While DF self-managers forged and embraced a friendly employment relationship, consumers in the IHSS context of paying family or co-ethnic fictive kin were more ambivalent about their employer role and used family ideals and family-like practices to negotiate possible tensions at the intimate level. The state's reliance on filial duty and ethnic community through IHSS may bolster flexibility and security at the intimate level in terms of mutually respectful negotiations of what is done, when, where, and how. Yet, as suggested in the previous chapter, collective backing is also important if the goal is flexibility with security. Indeed, another difference between DF and IHSS is that IHSS providers have a union.

How Large and Persistent is the Response of Inflation to Changes in Retail Energy Prices?

We estimate the dynamic effects of changes in retail energy prices on inflation using a novel monthly database, covering 110 countries over 2000:M1 to 2016:M6. We find that (i) inflation responds positively to retail energy price shocks, with effects being, on average, modest and transitory. However, our results suggest significant heterogeneity in the response of inflation to these shocks owing to differences in factors related to labor market flexibility, energy intensity, and monetary policy credibility. We also find compelling evidence of asymmetric effects—under sufficiently large shocks—in the case of high-income and low-income countries, with increases in retail fuel prices inducing larger effects on inflation than decreases in fuel prices.

The Effects of State and Local Economic Incentives on Business Start-Ups in the United States: County-Level Evidence

Even as economic incentives are increasingly used by policy makers to spur state and local economic development, their use is controversial among the public and academics. The authors examine whether state and local incentives lead to higher rates of business start-ups in metropolitan counties. Existing research indicates that start-ups are important for supporting (net) job creation, long-term growth, innovation, and development. The authors find that incentives have a statistically significant, negative relationship with start-up rates in total and for some industries including export-based and others that often receive incentives. The findings support critics who contend that incentives crowd out other economic activity, potentially reducing long-term growth. The authors also find that greater intersectoral job flows are positively linked to total start-ups, consistent with claims of those who advocate for policies that enhance labor market flexibility through reducing barriers to job mobility.