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Economics

The baby boom is an era marked by a higher birth rate due to several factors, including a higher fertility rate among a defined population. This phenomenon is conspicuous in developing countries due to the unpopularity of contraceptives. A common trait in most developing countries is the underdeveloped education system, predisposing the masses to higher illiteracy levels. Underdeveloped education systems contribute directly to the baby boom, as women who do not attend schools opt to get married early hence a more extended fertility period. The aftermath of the baby boom is pronounced in developing countries as it leads to population growth and hence causes stress on existing resources. This essay attempts to address the baby boom phenomenon and its entirety while attempting to answer the sample questions. It is imperative to note that this paper is not limited to the baby boom but serves to address other topics of interest, such as various factors that affect the economy. This paper is divided into subtopics to address the highlighted issues adequately.

Effect of the baby boom on education and wage structure in developing countries’ labor market

Simon and Pilarski (1979) find that it is necessary to investigate factors such as education supply, education demand, and budget constraints, to make informed decisions on the effects of the baby boom on education systems in developing countries. As mentioned earlier, the authors recognize that even though the strain caused by education cost might be negligible on the households, the effect is felt on a national level by the government, especially if the government offers free primary education.

In developing countries, the wage structure is determined by supply and demand forces (Stiglitz 1974). When considering rapid population growth due to the baby boom, the supply of labor exceeds the demand; hence labor is available at a lower wage rate.

Effects of the baby boom on unemployment rates on different groups in developing countries.

Bloom and Freeman (1986) suggest that women of childbearing age are less likely to participate in employment activities in developing countries due to the complexity of carrying out both activities simultaneously. The above authors also maintain that among the males, unemployment rates are likely to increase in the long term since population growth does not necessarily guarantee the availability of employment opportunities. On the racial discourse, Kothare (1999) notes an exception among the Indian population. Despite the rapid population growth due to the baby boom, the government’s fiscal policy ensures that employment opportunities are available to the Indian population.

Effects of maternal leave on female market participation and shares in developing countries.

As with most countries, both developed and developing, maternity leave increases women’s employment rates, depending on the length of the leave (Keck and Saraceno, 2013). The authors mentioned above that women who offered short-term maternity leave are likely to quit the workforce altogether.

Tipping culture in developing countries

While tipping is not a mandatory act, it helps to supplement the income of employees, mainly in the traveling industries. Since it is voluntary, there is no specific amount of cash that should be involved. It is important to note that the perceived benefits of tipping to workers cannot be empirically supported (Seltzer and Ochs, 2010). Seltzer and Ochs (2010) find that even though the perceived impact cannot be supported, the servers are likely to respond to a client’s needs.

Kenya National Union of Teachers- a Union case study in Kenya.

The Kenya National Union of Teachers was formed in 1957 in Kenya to address issues that affected the teachers, including payment of salaries (knut.or.ke). Over the years, the trade union has stayed true to its course, championing the teachers’ rights by extreme measures such as holding strikes (knut.or.ke).

Effects of parental leave on the market in developing countries.

Akgunduz and Plantenga (2012) believe that in cases where parental leave does not exist, parents would prefer to work for shorter hours than spend some time with the family. The authors mentioned above suggest that parental leave’s impact depends on whether the industry requires skilled or unskilled labor. In the case of unskilled labor, the impact of parental leave is insignificant.

Impact of legalizing illegal immigrants to the labor market

Legalizing illegal immigrants makes them eligible for government protection and policies hence improved wages (Rivera-Batiz and L. 1999). Improved wages directly translates to increased expenditure by the respective companies. Legalizing illegal immigrants also ensures they access government services such as education and training, helping them horn their skills, which come in handy when they are absorbed into the labor market.

Impact of China’s one-child policy on the labor market

Borjas et al. (2013) find that due to the decline in China’s fertility due to the family planning policies, the female labor supply is affected negatively. It is important to note that at the early inception of the Chinese government’s one-child policy, couples were allowed to have a second child if the first child was a girl.

Effects of China’s one-child policy on education and wage gap between men and woman

Fong (2002) suggests that before the one-child policy was implemented, families chose to spend their funds on their firstborn sons’ education instead of daughters. This phenomenon was fuelled by many cultural factors such as dependency on parents’ sons as they continued to age. Having this information in mind, smaller families resulting from the policy meant that the available educational resources were adequate for the family. The policy hence aided in closing the gap between education levels between male females. More females were educated during this period, hence reducing the wage gap between the genders.

Wage differences between immigrants and natives in developed countries

Having reviewed previous articles, I noted that natives are likely to get paid more than immigrants in developed countries despite possessing similar skillsets. Gheasi et al. (2017) investigate the wage disparity of migrants and natives in the Netherlands equipped with similar labor market skills. Based on skillsets, the authors, as mentioned above, look at natives and immigrants who studied at a Dutch university. Gheasi et al. mention wage disparity among Dutch citizens and first and second-generation migrants from non-OECD countries, despite all the groups being educated equally.

Effect of a mother’s education on child’s education outcome in developing countries

Income maintenance programs exist to augment the participant’s income (Shapiro, 2001). Some developing countries, such as Mexico, provide income maintenance programs such as cash transfer (Sadoulet et al. 2001) and food programs. Behrman (1996) finds that food programs are likely to encourage more children to pursue education. In developing countries, the level of mothers’ education directly influences children’s education outcomes. In research carried out in Kenya by Benta et al. (2013), the results suggest that children whose mothers have low education levels are likely to score better grades in their academic pursuits.

Impact of social programs on the labor market (Developing countries)

Social programs are initiatives enacted by various governments to counter some societal issues. According to un.org (2010), social programs such as the introduction of minimum wages are designed to improve the respective citizens’ welfare. However, un.org (2010) has noted that such measures have increased labor costs and reduced labor demand in the formal sector.

Networking within the job-market in developing countries

Social networks provide channels through which information about available employment opportunities are shared (Calvo-Armengol and Jackson, 2004). Progressively, it can be argued that the well-connected an individual is, the more likely he can choose high-paying jobs among his options.

How household bargaining impact fertility

In a family context, negotiations must occur within the households, mostly if significant decisions are made. It is imperative to note that married couples can have conflicting opinions, especially regarding having children. A study conducted by Westoff (2010) shows that in Africa, in 17 out of 18 countries investigated, men were open to having more children than women. The results show the disparity in preference, hence the necessity of household bargaining. Amicable agreement between the parties involved directly affects fertility in households.

How caste affects marriage selection

While caste is thought to have a hand in influencing marriage selection, studies conducted previously have disagreed with this statement. Fu (2008) suggests that even though husbands and wives in exogamous marriages might not have equal societal status on an income basis, the difference in status exists even in endogamous couples.

Can sex-specific income affect sex imbalance?

Qian (2008) reports that in Asian countries such as China and India, only 48.4% of the population are females. Qian (2008) also notes that this problem does not only affect emerging countries but rich countries as South Korea as well. During the Mao reforms that concentrated on growing cash crops, women had a comparative advantage in tea growing (Qian, 2008). The author mentioned that tea cultivation increased women’s income, which translates to an increase in girls’ survival rates, hence, gearing towards the offset of sex imbalance.

Influence of infrastructure change on the labor market in developing countries

Depending on the type of infrastructure, different labor markets are likely to be bolstered, increasing income among households in developing countries. Inoni and Omotor (2009) find that the development of rural roads in the delta state, Nigeria, positively affects the agricultural output.

Conclusion

In conclusion, various factors contribute to sex imbalance. These factors are a result of government policies. The income maintenance programs by the government also serve to protect individuals.

 

 

 

 

 

 

 

 

 

 

 

References

Behrman, J. R. (1996). The impact of health and nutrition on education. The World Bank Research Observer11(1), 23-37.

Benta A. Abuya, Moses Oketch, Maurice Mutisya, Moses Ngware & James Ciera (2013) Influence of mothers’ education on children’s maths achievement in Kenya, Education 3-13, 41:6, 633-646, DOI: 10.1080/03004279.2011.631562

Employment and Decent Work | Poverty Eradication. (n.d.). Retrieved November 08, 2020, from https://www.un.org/development/desa/socialperspectiveondevelopment/issues/employment-and-decent-work.html

Bloom, D. E., & Freeman, R. B. (1986). The effects of rapid population growth on labor supply and employment in developing countries. Population and Development Review, 381-414.

Borjas, G. J., & Van Ours, J. C. (2010). Labor economics (pp. 346-382). Boston: McGraw-Hill/Irwin.

Calvo-Armengol, A., & Jackson, M. O. (2004). The effects of social networks on employment and inequality. American economic review94(3), 426-454.

Easterlin, R. A. (1967). Effects of population growth on the economic development of developing countries. The Annals of the American Academy of Political and Social Science369(1), 98-108.

Fong, V. L. (2002). China’s one‐child policy and the empowerment of urban daughters. American anthropologist104(4), 1098-1109.

Fu, X. (2008). Interracial marriage and family socio-economic well-being: Equal status exchange or caste status exchange?. The Social Science Journal45(1), 132-155.

Gheasi, M., Nijkamp, P., & Rietveld, P. (2017). Wage gaps between native and migrant graduates of higher education institutions in the Netherlands. Letters in Spatial and Resource Sciences10(3), 277-296.

Home: Kenya National Union of Teachers. (n.d.). Retrieved November 08, 2020, from http://www.knut.or.ke/

Inoni, O., & Omotor, E. (2009). Effects of Road Infrastructure on Agricultural Output and Income of Rural Households in Delta state, Nigeria. Agricultural Tropicalet Subtropical42(2), 90-97.

Keck, W., & Saraceno, C. (2013). The impact of different social-policy frameworks on social inequalities among women in the European Union: The labor-market participation of mothers. Social Politics20(3), 297-328.

Kothare, R. (1999). Does India’s Population Growth Has A Positive Effect on Economic Growth?. Social Science410, 2-14.

Qian, N. (2008). Missing women and the price of tea in China: The effect of sex-specific earnings on sex imbalance. The Quarterly Journal of Economics123(3), 1251-1285.

Rivera-Batiz, F. L. (1999). Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States. Journal of Population Economics12(1), 91-116.

Sadoulet, E., De Janvry, A., & Davis, B. (2001). Cash transfer programs with income multipliers: PROCAMPO in Mexico. World Development29(6), 1043-1056.

Seltzer, R., & Ochs, H. L. (2010). Gratuity: a contextual understanding of tipping norms from the perspective of tipped employees. Lexington Books.

Shapiro, J. (2001). Income maintenance programs and multidimensional screening.

Simon, J. L., & Pilarski, A. M. (1979). The effect of population growth upon the number of education children receive. The Review of Economics and Statistics, 572-584.

Westoff, C. F. (2010). Desired number of children: 2000-2008. DHS Comparative Reports (25).

 

Stiglitz, J. E. (1974). Alternative theories of wage determination and unemployment in LDC’s: The labor model. The Quarterly Journal of Economics88(2), 194-227.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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