Who pays for biodiversity risk? Evidence from firm-level labor income shares

How does digital finance influence the share of labor income? Evidence from China

Does data factor marketisation effect labour income share? Evidence from Chinese A-share listed companies

ABSTRACT Agroecology entails more than a technical shift in farming; it represents a profound reconfiguration of agrarian relations. This paper examines these processes through a political economic lens. Using participatory action research, we characterized 10 small-scale farms in Cochabamba, Bolivia – five implementing dynamic agroforestry (DAF) and five neighboring conventional farms – focusing on agricultural design, management, production, and economic performance during the 2023–2024 season. Labor dynamics were analyzed, and value capture was calculated using the value added to gross value of production (VA/GVP) ratio. The findings indicate that agroecological systems not only capture more labor income but also generate substantially higher value per unit area than conventional farms. VA/GVP ratios on agroecological farms ranged from 70% to 95%, compared to negative values up to 51% on conventional farms, despite the latter being up to 8 times larger in area. Agroecological farms also achieved, on average, over 4 times greater output per square meter (GVP/m2). Agroecological farmers expressed enhanced autonomy, health, climate and economic resilience, personal fulfillment, and overall wellbeing. These results challenge dominant narratives that equate productivity with scale and input intensity, highlighting agroecology’s capacity as a socially and economically transformative approach.

In many developing countries, the labor market participation and incomes are increasing. The time available for preparing meals has become scarce, potentially increasing the demand for more processed food products. This study investigated the reasons for the repeated purchase intentions of processed shrimp products in Bangladesh. Founded on the theory of planned behavior (TPB), data from 250 superstore consumers were collected from three metropolitan cities in Bangladesh via a semi-structured questionnaire. High-income consumers purchase more processed shrimp products than do low- and middle-income consumers and more frequently, and consumption is also impacted by educational and occupation status. Structural equation modeling revealed that repeated purchases of processed shrimp products domestically were significantly influenced by purchase intentions, which were affected by trust, attitudes, and perceived control.

This paper presents a comparative analysis of Argentina and Uruguay’s cash transfer responses to the COVID-19 pandemic. Despite similar institutional foundations, the countries adopted contrasting strategies: Argentina expanded horizontal coverage through new programmes reaching nearly half of all households, while Uruguay increased the value of existing transfers. These approaches reflect structural differences, particularly labour informality rates (45% in Argentina vs 25% in Uruguay), and distinct policy orientations, with Uruguay prioritising fiscal equilibrium and targeted interventions and Argentina emphasising broad coverage. Using household survey microdata and decomposition analysis, the study examines the distributional effects of these interventions. In Argentina, transfers offset approximately half of the inequality increase driven by labour income losses and reduced poverty by 4 percentage points. Uruguay’s more targeted approach produced modest aggregate impacts but greater progressivity, reducing poverty by 3 percentage points. During recovery (2020–2022), labour income improvements drove distributional gains in both countries as transfer programmes scaled back. By 2022, inequality had returned to pre-pandemic levels in both countries, but poverty trajectories diverged: Argentina remained 2.5 percentage points above baseline, while Uruguay achieved a 1.4-percentage-point reduction. The findings contribute to debates on designing resilient social-protection systems during economic and health crises in Latin America.

This study analyzes the value added generated from processing Robusta coffee beans into ground coffee at Air Lanang Coffee, a micro, small, and medium enterprise (MSME) located in Rejang Lebong Regency, Indonesia. A quantitative descriptive case study approach was applied using primary data collected through direct interviews and field observations, supported by secondary data from relevant documents. Value added was calculated using the Hayami method, which measures conversion factors, value added, value-added ratios, labor income, and profit per kilogram of output. The results show that processing 1,000 kg of Robusta coffee beans produces 780 kg of ground coffee, resulting in a conversion factor of 0.78. The value added generated reaches IDR 45,352.13 per kilogram, with a value-added ratio of 41.53 percent, indicating a high value-added category. Labor income accounts for 16.1 percent of the value added, while net profit reaches IDR 38,052.13 per kilogram or 34.85 percent of the output value. These findings indicate that ground coffee processing at the MSME level is economically viable and provides substantial added value. Improving processing efficiency, cost control, and market access can further strengthen the competitiveness and long-term sustainability of small-scale coffee agroindustry.

ABSTRACT As their populations age, Japan, the United States, and many other countries face challenging economic prospects. Due to important intergenerational linkages, members of every generation will be affected. Saving may prove to be insufficient and old‐age support systems fiscally unsound. Here we assess the proportional reduction in consumption across all ages that would be required to attain long‐term sustainability. We use a simulation model together with the most extensive data ever compiled to analyze the connections between age structure and the economy. Our goal is to root our analysis in these rich empirical measures of age‐specific economic behavior which provide a straightforward interface with the population age distribution. This approach contrasts with more theoretical models incorporating feedbacks and endogenous behavior while requiring different kinds of assumptions. Sustainability requires both cross‐sectional aggregate balance each year and longitudinal balance for each birth cohort. Specifically, we ask: “Are the baseline age profiles of consumption, labor income, savings, and intergenerational transfers sustainable in a hypothetical demographic steady state that would result from fixed fertility and mortality rates? To what extent would the age profile of consumption have to be altered to achieve sustainability?” Sustainability is calculated for each country using conditions as of three dates: several decades ago (1984 Japan and 1990 US), 2019, and 2065. We find that the intergenerational economies in Japan and the US were close to sustainable at the earlier date, but became seriously unsustainable by 2019. An even greater shortfall would occur given expected fertility and mortality rates for 2065. We discuss reasons for the deterioration in sustainability—population aging, differences in economic behavior, and public policy. Given 2019 conditions long‐run sustainability in Japan would require a 15% reduction in consumption (relative to labor income with an underlying upward trajectory from expected productivity growth). With the projected fertility and mortality conditions of 2065, a 19% reduction would be required to achieve sustainability. For the US, the corresponding reductions would be 9% for 2019 and 12% for 2065 conditions.

How Does Media Regulatory Pressure Affect the Share of Labor Income in Enterprises? Mechanisms and Macroeconomic Effects Analysis

Does command-based environmental regulation affect corporate labor income share? Micro evidence from China

Subject. This article discusses the investment mechanism within the framework of the Long-term Savings Programme (LTSP) implementation. Objectives. The article aims to assess the effectiveness of participation in the LTSP for private investors, as well as develop recommendations for improving it by creating conditions to reduce the costs of non-State pension funds (NSPF) and their commission fees. Methods. For the study, I used the general scientific methods and performed scenario calculations. Results. The article analyzes the sensitivity of investment results to changes in inflation rates, real investment returns, the level of investors’ labor income, and NSPF commission rates. It shows that with the current high level of commission fees and ongoing inflation risks, the LTSP is primarily attractive for investors with low incomes and limited financial literacy, which prevents them from independently investing via individual investment accounts (IIA). At the same time, a reduction in NSPF commission rates would make the LTSP attractive for experienced investors as well. As well, the article proposes certain measures to expand the long-term savings market. Conclusions. It is advisable to develop and implement a basic investment strategy for LTSP participants, based on passive investment in federal loan bonds with indexed nominal value. It is necessary to create a resource for disclosing information on the level of commissions and investment results of LTSP operators.

Rural communities in developing countries face rising livelihood vulnerability due to climate change, agricultural price volatility, and dependence on linear production systems. This study examines whether circular utilization of cashew by-products can strengthen rural economies through a field-based case study in rural Cambodia. Primary data were collected through on-site observations, semi-structured interviews with farm owners and rural workers, and farm-level economic assessments. The results indicate that cashew apple juice processing is not financially viable as a standalone activity under prevailing wage and market conditions, producing negative net profits across all examined processing volumes. By contrast, integrating cashew apple utilization with other by-products shows more favorable outcomes. Cashew nut shells and pruning residues generate relatively stable supplementary income for farm operators, while cashew apple collection creates additional employment opportunities, particularly during off-harvest periods and low-yield years, helping to stabilize household labor income. Rather than relying on capital-intensive technologies, the observed practices represent low-cost and locally feasible circular economy approaches suitable for medium-sized commercial farm-based systems, with potential analytical transferability to smallholder contexts. Overall, these findings suggest that integrated by-product utilization may reduce income volatility and support sustainable rural community development in similar cashew-producing contexts.

This paper analyses the use of AI agents from a macroeconomic perspective. It shows that AI agents can trigger a structural break in the organisation of production and work. In contrast to earlier automation, AI agents not only increase the productivity of human labour. Rather, they are able to completely and permanently replace entire task areas. The central mechanism is a competition-driven pressure to automate. As soon as AI agents can fulfil tasks more cost-effectively than human labour, companies are forced to automate these tasks under competitive conditions in order to remain competitive. Automation is therefore not an optional innovation path, but an endogenous equilibrium outcome. The paper develops a task-based macroeconomic modelling framework in which AI agents are modelled as an independent factor of production that competes directly with labour for tasks. Decreasing agent costs and increasing agent productivity systematically shift an automation threshold over time and lead to the complete substitution of labour in growing task clusters. The analysis shows that rising output and falling labour demand can occur simultaneously and that productivity gains do not necessarily go hand in hand with stable employment. Furthermore, it becomes clear that the functional distribution of income is structurally shifting from labour income to agent and capital income, which creates potential risks for aggregate demand. The paper discusses these results in the context of the existing macroeconomic literature on technological change and shows that established models do not adequately capture the competition-driven compulsion for complete task substitution. The contribution lies in the explicit modelling of this mechanism and in the reassessment of the relationship between competition, productivity and employment in the age of AI agents. Keywords: Labour market, automation, AI agents, macroeconomics, productivity, technological change, competitive dynamics, value creation

ABSTRACT This study scrutinizes COVID-19 social policy responses targeting low-income families in the urban centres of East Asian societies. We investigate their generosity, coverage, and potential for poverty reduction using a model family approach. We (1) compare their welfare systems during COVID-19 and (2) assess how they changed from before (2019) to during the pandemic crisis (2020–21). The model family approach entails collecting income-packaging data for hypothetical income levels and family types, including information on labour income, welfare benefits, tax and social security contributions, and costs. We collected model family data and analysed these primary data (n = 2,094) through descriptive statistics and regression analyses. We found that three societies instituted the most changes in welfare measures during COVID-19: Hong Kong adopted multidimensional responses, Taiwan adopted generous responses with low generosity, and Singapore adopted coverage responses with low generosity. The other three societies adopted fewer changes with varying characteristics: Japan exhibited a limited response with high generosity, Korea had a limited response with low generosity, and Mainland China displayed a limited response with low coverage. Our comparative research can expand the conceptualization of East Asian welfare models to a shock-response context and provide evidence for governments to improve their shock-responsive social protection systems.

ABSTRACT The gig economy has profoundly impacted labour markets by expanding job opportunities, raising workers’ wages, and restructuring traditional employment relationships. As gig workers are not formal employees, firms can flexibly procure labour through markets, reshaping income distribution patterns. Leveraging the staggered entry of food delivery platforms into 229 Chinese cities as a quasinatural experiment, this study employs a staggered difference-in-differences approach with 2006–2019 data from A-share listed firms on the Shanghai and Shenzhen stock exchanges in China to examine how the gig economy affects firms’ labour income share (LIS). Results indicate that platform entry significantly lowers firms’ LIS by 1.67%, with stronger negative effects observed for labour-intensive firms and cities with net population inflows, advanced mobile infrastructure, and larger populations. Mechanism analysis reveals that this effect operates through increased relative costs for low-skilled labour, reduced low-skilled employment, and accelerated capital deepening. Further analysis demonstrates that enterprises’ adaptive adjustments in response to the gig economy have significantly enhanced their total factor productivity. We advocate for proactive governance mechanisms that strengthen legal frameworks and establish rights protection systems tailored to new labour relations to enhance LIS and improve income distribution equity.

A substantial share of workers are self-employed, but there is a dearth of data on heterogeneity in these work arrangements. To address this gap, the authors identify the variety of self-employment work arrangements in novel data produced using machine learning, leveraging 2003–2019 Panel Study of Income Dynamics respondents’ narrative descriptions of their industry, type of work, and employer names. The authors examine trends in the prevalence and nature of these forms of self-employment, transitions across them, and who works in them. Findings show disparate trends in the prevalence of different work arrangements and in transitions across work arrangements that would otherwise be masked. Further results suggest that the informally self-employed are less likely to have business assets, engage in more routine and less abstract skills on their jobs, are less educated, are less likely to be male and non-Hispanic White, have less labor income, and have worse well-being.

This study examines the economic conditions and re-employment patterns of older adults in Japan, focusing on financial well-being after the age of 65. Using publicly available government statistics, it provides a descriptive secondary-data analysis of labor force participation, income patterns, pension context, and savings-related indicators among older adults. Drawing on cumulative disadvantage theory, the life-cycle hypothesis, and the concept of productive aging, the paper interprets how life-course inequalities, consumption-smoothing constraints, and later-life roles may shape economic security and continued employment. While aggregate indicators suggest that many older-adult households maintain economic security through pensions, savings, and continued work, a subset, particularly one-person households and those with limited savings buffers, may face heightened financial pressure. The findings highlight within-group heterogeneity in Japan’s aging society and underscore the importance of targeted policies that strengthen income security and support vulnerable groups in later life. The case of Japan offers broader implications for other developed countries with similar demographic trends, suggesting the need for policies that promote financial preparedness and strengthen protections for at-risk households.

ABSTRACT This study examines the relationship between labor income inequality, higher education, and STEM occupations in Ecuador from 2009 to 2013 and from 2014 to 2019, considering techniques, degrees, and postgraduate education. It analyzes the “composition effect” and the “structural effect” using the recentered influence function (RIF). The “composition effect” measures how much inequality increases due to the influx of more workers with higher salaries. Conversely, the “structural effect” measures the extent to which inequality is reduced by increasing the total resources allocated to the wage bill and how these resources are redistributed. The results show no evidence of a structural effect of higher education from 2014 to 2019. The “structural effect” does not occur in STEM fields. The inability to reduce inequality in STEM occupations in Ecuador is linked to the economy's structural limitations and the institutional framework of the Andean country.

This study explores how globalization affects economic inequality across social classes through transnational economic interactions by a quantitative analysis and case studies. A multivariate linear regression model is constructed based on World Bank data after the 2008 financial crisis. The results show that export price levels(log(pl_x)) and capital prices(log(pl_k)) significantly increase income inequality, while consumer prices(log(pl_c)) and share of labor income(labsh) have a suppressive effect. The study found that domestic policies(such as the high welfare system in Northern Europe) can partially offset the negative impact of globalization, but the model has limited explanatory power for Latin American and African countries. The study advocates addressing the challenge of inequality under globalization through tax reform, strengthening social security and industrial diversification policies.

Abstract This paper analyzes whether Chinas investment and savings rates are too high by considering the rate of turn to investment and other factors. It also investigates the reasons for the rapid increase in the savings rate by using various sources of data and analytical tools. In particular, much attention is paid to the distribution of income among households, corporations, and the government, and to the labor income share. Policy proposals for structural adjustment are discussed based on the finding of the investigation.