Lower Labor Costs Research Articles

Nonlinear Effect of Human Capital on Economic Growth

Under the “new normal”, China's economic development mode has shifted from scale and speed to quality and efficiency, and the development driving force has shifted from mainly relying on factor inputs such as resources and low-cost labor to innovation driven. Therefore, it is particularly important to correctly understand the different promoting effects of human capital on economic growth in different stages of human capital development. Consequently, the panel smooth transition regression model was used to study the threshold characteristics and regional differences for human capital of mental quality and physical quality to the economic growth from 1982 to 2019 in China. The results shown that, the mental quality and physical quality of urban and rural have nonlinear effects on economic growth, in addition to the model of physical quality of urban has two system, the other three models are three system. Except the effect of mental quality of rural on the economic growth inhibited the transformation of restrain to promote, the effect of rest of the models always shows promotion performance, along with the promotion of mental quality and physical quality of urban and rural, the promoting effect of economic growth is gradually strengthened. The stimulating effect of mental quality and physical quality of human capital on economic growth exits regional difference, the role of human capital on economic growth is more obvious especially in the eastern coastal areas and relatively developed areas of economy.

Urban gig workers in Indonesia during COVID-19: The experience of online ‘ojek’ drivers

This paper uses case study evidence to examine how COVID-19 has impacted on the working conditions of urban gig workers (online ‘ojek’ riders). Initial findings suggest that the platform companies use the term ‘partner’ to commandeer low-cost labour and thereby avoid the obligations required of a contract of employment, and that this vulnerability has become more evident in COVID-19 pandemic conditions. The findings suggest that the platform companies should pay more attention to worker feedback to create a better working environment, as decent work will better be achieved with responsible corporate governance, good management, and strong worker-management relationships.

Effect of Crop Establishment Methods on Performance of Rice in Rupandehi, Nepal

An on-station experiment was conducted to assess the growth, productivity and profitability of rice under various crop establishment methods at the agronomy farm of Paklihawa Campus, Rupandehi, Nepal in 2019. The experiment was laid out in Randomized Complete Block Design with five treatments and four replications. The treatments included: Traditional Transplanting–Random (TTR), Traditional Transplanting–Line (TTL), System of Rice Intensification (SRI), Wet Direct Seeded Rice-Line (WDSRL) and Wet Direct Seeded Rice-Broadcasting (WDSRB). The results showed that plant height, number of tillers at 40 DAT, number of grains per panicle, 1000 grain weight, grain yield, straw yield and grain sterility percentage were significantly influenced by crop establishment methods, whereas number of tillers at 60 DAP, number of effective tillers at harvest, panicle length and harvest index were not significantly different among the treatments. TTR method produced the highest grain yield (4.58 t/ha), straw yield (7.25 t/ha) and benefit-cost ratio (3.28) followed by TTL. Hence, traditional transplanting method of rice establishment was found better than WDSR and SRI in terms of productivity and profitability. Direct seeding and SRI could also be an attractive alternative to transplanting because of lower labor requirement and cost of production

Teff [Eragrostis tef (Zucc.)] rainfed yield response to planting method, seeding density, and row spacing

AbstractTeff [Eragrostis tef (Zucc.)] grain yield is low due to lack of improved management practices. We evaluated grain yield and cost of planting methods (broadcast, row, and transplanting), row spacing (10, 15, 20, 25, and 30 cm), and seeding densities (2.5, 5.0, 7.5, 10, 15, 20, and 25 kg ha−1) for teff in the 2012 and 2013 cropping seasons at the Adet Agricultural Research Center farm in northwest Ethiopia. Transplanting (1,675 kg ha−1) resulted in 34 and 75% greater grain yield (P < .05) than row (1,247 kg ha−1) and broadcast planting (958 kg ha−1), respectively. Row planting gave greater (30%) grain yield than broadcasting. Seeding density did not significantly influence grain yield in broadcast or row planting. Row spacing significantly influenced grain yield under row planting but did not significantly influence grain yield under transplanting. Regression analysis indicated grain yield increased as seeding density increased from 2.5 to 10 kg ha−1, then declined at greater seeding densities for both broadcast and row planting. Grain yield declined sharply as row spacing increased from 15 to 30 cm for both transplanting and row planting. Partial‐budget analysis showed that although teff transplanting gave the greatest grain yield, it was not economical due to low straw (biomass) yield and high cost of labor. Row planting at a spacing from 10 to 15 cm at 15 kg seed ha−1 was the most economically effective teff production method, with a net benefit of $1,640 ha−1.

Simulation Modeling and Analysis of a Door Industry

Ιn this paper, the authors study the production line of a door industry. The first stage of this research consists of the detailed documentation with flow charts and systematization of all production processes, all product types, as well as all stages of production and equipment. The standard production times were calculated for each workstation, together with the relevant workforce requirements. In the second stage of this research, a discrete event simulation model of the factory was developed to assist in the production planning decision-making. The simulation model was verified using actual production data relating to 19 customer orders for a total of 1,281 doors. Four simulation experiments were executed, where the effect of alternative shifts on the manufacturing line's efficiency was investigated. The performance metrics of total production, mean daily production, and mean labor cost per product were considered. This experimental trial resulted in the identification of the shift configuration that achieves increased productivity while maintaining relatively low labor costs.

Synergy of flow injection system and molecular recognition technology products for rapid determination of 89,90Sr and 210Pb

A rapid, automated separation procedure was developed for radioactive strontium and lead isotope determination. This system includes a portable automated system for the preconcentration and sequential elution of targeting isotopes with an Na2H2EDTA solution from solid phase extraction materials, AnaLig®Sr-01 and SuperLig®620, provided by IBC Technologies. Strontium and lead were separated from the majority of matrix constituents to obtain pure fractions of Pb and Sr prior to radiometric detection. In case of barium presence, it can also be fully isolated and completely separated from Sr. The automated procedure can be successfully used for preconcentration and separation from high as well as low radioactivity samples. With only a 1 mL column filled with SuperLig®620, it is possible to isolate Sr and Pb with 100% recovery from 1 L to 2 L of sample at a flow rate of up to 10 mL min−1 within several hours. 89,90Sr isotopes can be further determined by Cherenkov counting, while 210Pb isotopes can be determined by either gamma spectrometry or liquid scintillation counter. The method was tested and validated using certified standard materials and proficiency test samples. The synergy of automated separation and detection procedures enables the determination of the low level activity of 90Sr and 210Pb in a short time with detection limits of 20 mBq L−1 for both isotopes. The proposed method enables lower labour costs, minimal size of apparatuses and columns, low separation time, and reduced secondary waste production. The automated procedure may be easily implemented in laboratories worldwide and can also be used at sampling sites.

Integrating Price-Incentive and Trip-Selection Policies to Rebalance Shared Electric Vehicles

Because electric vehicle sharing (EVS) offers the advantages of high flexibility and convenience, it has been receiving increasing attention worldwide as an effective approach to easing traffic congestion and environmental pollution. However, unbalanced electric vehicle distribution is an obstacle in the development of EVS. In this paper, we propose an integrated strategy to mitigate the imbalance issue and enhance customers’ adoption of EVS. We construct an integrated strategy that combines the price-incentive approach with the trip-selection policy and models uncertain travel demand in a continuous trip-adopting process based on our integrated strategy. Aiming to improve EVS operating profits, we apply spatiotemporal nonlinear mixed-integer programming to formulate the travel pricing and rebalancing plan. Additionally, we approximate the model in a tractable form after analyzing the optimal service adoption and develop an efficient exact algorithm to handle the nonlinear items. The computational results of a real-world car2go Amsterdam case study demonstrate several economic and environmental benefits generated by our integrated policy, including (i) higher profits for EVS operators, (ii) improved service satisfaction for consumers, and (iii) a higher level of carbon emissions reduction, from 381 grams per mile to 225 grams per mile, beneficial for the social environment. Moreover, according to the case study, an appropriate initial fleet size, high rebalancing frequency, low labor cost, high potential travel demands, and short charging time also benefit EVS operation.

Experience Using a Forehead Continuous Deep Temperature Monitoring System During Air Evacuation

ObjectiveThe present study describes the utility of a forehead continuous deep temperature monitoring system by the staff members of a doctor helicopter (DH). MethodsA questionnaire survey was performed for all flight doctors who had used this system during transportation by the DH to assess its merits and demerits. ResultsThe major benefits of this system were its easy usability, disposable nature, low labor cost, continuous demonstration of the deep temperature in a prehospital setting, and low invasiveness. However, drawbacks of this system include its cost; need for a power supply; need for a few minutes for calibration to obtain stable results of temperature, making it impossible to verify the effects of intervention for body temperature during a short flight; and lack of a detachable measuring pad for the forehead when a patient has an injury on the face or head and hyperhidrosis. In addition, the system's attached cables may hamper medical interventions. ConclusionWe reported the experience of DH staff using a forehead continuous deep temperature monitoring system in the prehospital setting. Further studies will be required to determine the indications for using such a system in the prehospital setting.

Heterogeneity in the extraction of labor from labor power and persistence of wage inequality

AbstractThere is evidence that labor intensity is endogenous to wage compensation and that inter‐ and intra‐industry wage differentials are non‐negligible and persistent. We explore the implications of firms periodically choosing between alternative wage compensation strategies to extract labor from labor power more effectively. The frequency distribution of labor extraction strategies across firms is endogenously time‐varying as driven by satisficing evolutionary dynamics that generate wage inequality as a stable long‐run equilibrium under theoretically and empirically plausible conditions. Firms willing to extract more labor from labor power remunerate workers with a higher wage. Yet a larger proportion of firms following such a strategy does not necessarily result in a lower (higher) average unit labor cost (profit share) and hence in higher average rates of profit and saving‐determined output growth. The larger the proportion of firms that attempt to extract more labor from labor power by remunerating workers with a higher wage, the less these firms are successful. This result can be seen as characterizing another potential contradiction of the capitalist economy.

Exit, Voice or Loyalty? VET Stakeholders’ Response to Large Scale Skilled Emigration From Poland

Context: The topic of this paper is how mass emigration of skilled workers affects national policies, and employers’ willingness to invest in Vocational Education and Training (VET) in Poland. In the wake of EU enlargement in 2004, Poland became one of the biggest sending countries for skilled labour to Western European countries. These massive outflows of skilled labour, not compensated by adequate inflows of equally skilled workers, have led to serious skills shortages, especially in the construction sector. The paper investigates whether emigration and immigration constitute a driving force for institutional change of the Polish VET system, by analysing policy development and the attitudes of VET stakeholders towards contributing to VET.Approach: The paper focuses on the emigration of skilled construction workers in Poland. Drawing on Hirschman’s (1970) framework, when faced with massive skills deficits construction companies are confronted with different options: i) withdraw from the VET system and find other training and recruitment options (exit), ii) attempt to improve conditions by turning to policy makers (voice), and/or iii) remain loyal to the VET system. The analysis is based on an interview study of decision makers responsible for VET policies, employers, chamber of Craft and trade unions, principals of vocational schools, teachers and representatives of regional examination boards.Findings: After years of inattention, VET has been regaining a strong position in national policies. We find that construction companies are mostly more willing now, compared to 5 years ago, to take on learners for practical training and to contribute to improving school equipment. The study showed that one of the most significant obstacles to employers investing in the training of VET learners is the fear of losing a young skilled employee through emigration. Yet, dependent on skilled labour, employers of big construction companies saw no other option than to continue investing in training young learners. However, smaller companies seeking the short-term benefits of employing low-cost labour are less interested in investing in VET.Conclusion: Despite a range of recent policy actions and legislative efforts, several major challenges in the Polish VET system remain unresolved. Continued effort to institutionalise and enhance dialogue between the education system and the labour market appears as the most pressing need. It is currently too early to determine the degree of "institutional stickiness" of the activities observed on the policy level and among employers regarding their increased interest in VET as a response to mass skilled emigration.

Promoting sustainable development through trade? EU trade agreements and global value chains

AbstractSustainable development provisions have become an integral part of the European Union's (EU's) ‘new generation’ trade agreements. Yet, a growing number of empirical works show that their design varies significantly, even in the trade agreements signed with countries at similar (low) levels of development. We contend that this variation can be accounted for by discussing how the growing integration of the EU economy with specific developing countries across global value chains (GVCs) affects the domestic politics of regulatory export in the EU. European firms that operate within GVCs rely on imports of inputs produced in low-labor cost countries. These firms tend to oppose the export of those regulatory burdens that generate an increase in their imports' variable costs. The political mobilization of these actors weakens domestic coalitions supporting regulatory export strategies, which explains why the EU adopts a more lenient approach over the inclusion of sustainable development provisions in Preferential Trade Agreement negotiations with some developing countries.

Middle-Income Trap: The Case of Poland

The middle-income trap (MIT) describes systemic growth obstacles shared by various countries that occur typically at the middle-income level of their development. The following analysis relies on Rostow’s classification of the stages of economic development. We focus on Rostow stages three and four, where moving from labor intensive, import and foreign direct investment (FDI) driven growth to reliance on high value-added output and exports with embedded high content of capital and technology can render sustainable long-term growth problematic. To examine MIT we study Poland, which has relied on relatively low labor costs, imported technologies, funding from the European Union and FDI to attain middle-income status. A recent slowing in Poland’s growth may signal that it has exhausted some of these growth factors and is more vulnerable to MIT. To assess this vulnerability, we analyze changes in Poland’s factor productivity, investment patterns, FDI, labor force educational attainments, new technology/product development, imports, export diversification, product complexity, and other factors. We conclude that certain conditions consistent with MIT are gaining importance in Poland and represent a challenge to its future economic growth.

Working on Margins

By diversifying working methods and conditions, outsourcing on a world scale has led to new production of geographies, complicating the idea of a strictly limited economic area. Based on ethnographic research on Italian firms’ supply chains in Romania and Moldova, the purpose of this article is to show the formation of marginal figures of the European and non-European labour market. In highlighting the strategic role of borders, I seek to anthropologically deconstruct the concept of the division of labour, showing the strategies of multiplication and diversification of work processes in the global production network. These processes contain programmes, institutions and economic development practices analysed here as classifications that produce representation and finally the presence of low-cost labour.

Smart Retailing in COVID-19 World: Insights from Egypt

COVID-19 pandemic has had a significant impact on business in general and the retail sector in particular which was hardly hit as sales fell by 20 percent during this period. The main challenges that face retailers nowadays during COVID-19 outbreak include: balance in supply and demand; safety of employees; trust between retailer and consumer; distribution - transportation capability; shortage of manpower and consumer behavior (Fernandes, 2020; Kumar et al., 2020; Pantano et al., 2020). Yet, retailers around the world started to understand the benefits and new opportunities offered by smart technologies (Inman and Nikolova, 2017; Renko and Druzijanic, 2014). New technologies like internet of things (IoT) can play a significant role in controlling the pandemic situation in the retail sector and are expected to bring substantial benefits such as lower labor costs, increased efficiency, attraction of new shoppers and the generation of new revenue channels (Roy et al., 2017; Vaishya et al., 2020; Wünderlich et al., 2013). However, only a limited number of retailers has adopted IoT due to the huge financial investments required and uncertainty of customers' acceptance (Alkemade and Suurs, 2012; Evans, 2011; Pantano et al., 2013). It is, thus, expected to see smart retailers taking a series of actions over the short to medium term to conserve cash and structure of their company for post-COVID-19 operations. This research aims to explore the retailers' perceptions towards the adoption of smart retail technologies in Egyptian retailing context throughout conducting a series of semi-structured interviews with mid-to-top level management in different retail organisations and discuss the advantages and challenges expected from smart retail technologies adoption. Moreover, the research explains how smart retail can help overcoming uncertainities and is considered a well managed response strategy by retailers to COVID-19.

Critical factors influencing carbon emissions of prefabricated building supply chains in China

Prefabricated buildings (PBs) have been actively promoted worldwide with the advantages of low labor costs, rapid construction and resource conservation. PBs have been proven to be an effective solution for reducing carbon emissions in the construction industry. To realize the carbon-reducing potential of PBs, this paper explores the key factors affecting carbon emissions and the influencing relationships from the perspective of the supply chain. Applying structural equation modeling, a hypothesis model composed of ‘social and governmental factors’, ‘market factors’, ‘technical factors’ and ‘supply chain coordination factors’ is evaluated. The results confirm that ‘technical factors’ have the strongest effects on reducing carbon emissions in prefabricated building supply chains (PBSCs), and ‘supply chain coordination factors’ have the weakest. The results also reveal that the indirect influence of ‘market factors’ is the most significant. Moreover, ‘level of low-carbon design’ and ‘low-carbon awareness of companies’ are suggested as key factors for reducing carbon emissions in PBSCs. This research provides guidance for the adoption of low-carbon measures by participants in PBSCs. Against the background of construction industrialization, consideration of the carbon emission-reducing mechanism of PBSCs can also help the government effectively formulate low-carbon strategies for the construction industry.

Embedded Liberalism in the Digital Era

In recent years, the volume and intensity of attacks on globalization have been steadily rising. It is frequently argued that the anti-globalization backlash stems from strains that have been placed on the compromise of embedded liberalism. We argue that existing research underemphasizes how technological change and the digital revolution have contributed to these strains. Global value chains facilitated by the digital revolution have linked technology in advanced industrial countries to low-cost labor in developing countries, precipitating distributional losses for lowskilled labor in the industrial world. Further, the digital revolution has led to regulatory challenges involving both capital and labor. We argue that, as a result, governments face both mounting opposition to globalization and heightened difficulty supporting the programs and policies necessary to buffer the adverse domestic effects of globalization and maintain support for embedded liberalism.

Environmental and economic impacts of biochar production and agricultural use in six developing and middle-income countries

The feasibility of using biowaste for the production of biochar and its use in agriculture depends on its environmental and economic performance. This paper quantifies environmental and economic life cycle impacts of biochar production and agricultural use in six developing and middle-income countries (Ethiopia, Indonesia, Kenya, Peru, Vietnam, and China). Two types of production technologies typical for rural and urban areas were investigated (flame curtain kiln and gasifier, respectively), and comparisons were made with composting (either home composting or windrow composting) as alternative biowaste management systems. The results showed that both pyrolysis systems performed better than composting and both were expected to bring environmental benefits. The largest environmental benefits were observed for the gasifier systems, mainly due to the substitution of electricity production from the grid. Damage to ecosystems and human health ranged from −1 × 10−7 to −2 × 10−8 species×yr and from −1 × 10−5 to −5 × 10−6 DALY per kg of biowaste treated, respectively (negative scores indicating environmental benefits). However, net economic benefits were only achieved when low-cost simple kilns were used in countries with low labor cost, like Ethiopia, Kenya and Vietnam (net profit from 0.01 to 0.08 USD per kg of biowaste treated). Further, high investment and operating costs and relatively small electricity revenue from substituting the grid electricity resulted in gasifier scenarios being economically unsustainable (net loss from 0.29 to 1.58 USD per kg of biowaste treated). Thus, there are trade-offs between positive environmental impacts for society and net market loss for the individual decision-maker (company or individual farmer) that should be considered when making decisions regarding the implementation of biochar technology in developing and middle-income countries. The use of simple kilns in countries with relatively low labor costs appears to be favorable.

The Labor Productivity Gap between Formal Businesses Run by Women and Men

ABSTRACT This study analyzes gender differences in labor productivity in the formal private sector, using data from 126 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among women- than men-managed firms. The analyses are based on women’s management, which is more strongly associated with labor productivity than women’s participation in ownership, which has been the focus of most previous studies. Decomposition techniques reveal several factors that contribute to lower labor productivity of women-managed firms relative to firms managed by men: Fewer women-managed firms protect themselves from crime and power outages, have their own websites, and are (co-)owned by foreigners. In addition, in the manufacturing sector, women-managed firms are less capitalized and have lower labor costs than firms managed by men.

Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

Low cost of labor has been one of the major incentives that foreign firms invest in many developing countries. Yet, many developing countries including China and ASEAN have recently experienced a rapid increase in labor costs. Using the wage information provided by JETRO, this study examines how Korean FDI outflow is affected by the increase in labor costs of the manufacturing industry in host countries. The results indicate that the worker’s and engineer’s wages in Asian developing countries, who accumulated at least 3 and 5 years of work experience, have generally a negative impact on Korean FDI outflow. However, there exist positive relationships between the wages and FDI when the wages stay at very low levels. We do not find evidence that labor costs make a significant impact on Korean FDI outflow to European or Developed countries.

INVESTIGATION OF THE MECHANICAL AND TECHNOLOGICAL PROPERTIES OF FODDER CROPS TO DETERMINE THE PARAMETERS OF THE WORKING BODIES OF MOWER CONDITIONERS AND OPTIMAL MODES OF THEIR OPERATION

In modern conditions, with insufficient resource supply for agriculture, the most popular in fodder production is resource-saving technologies that increase production of highly nutritious feed at a low cost of labor and money. In field fodder production, resource conservation can be achieved through the wider use of new approaches and crops in the harvesting - perennial leguminous grasses for harvesting hay, which have high environmental sustainability and competitive ability. The most important task of intensifying livestock in the winter is the harvesting of hay (haylage) from crops with a high content of protein and protein (carotene). As a result of the study of the size-mass characteristics of the most valuable feed-rich crop, rich in protein and amino acids, which is important when developing methods for preparing fodder from perennial leguminous herbs - alfalfa. Knowing the properties of alfalfa will allow to really reach the design and technological parameters. The linear dimensions of alfalfa are given to enable the design of mower conditioners with vertical placement of conditioner rollers (sizes of working bodies, their setting and operating modes). According to the long-term results of the study of the size-mass characteristics of alfalfa, the features of varying the marked features and their correlation are established. Research data after mathematical processing made it possible to identify the correlation between the length of the stalk of alfalfa and its stability, which is an important indicator in the design of working bodies and the establishment of appropriate operating modes of mower conditioners with a vertical conditioner.