The Civil Rights Movements Impact on America - Free Essay Example

Sample details Pages: 8 Words: 2325 Downloads: 8 Date added: 2019/03/21 Category History Essay Level High school Tags: Civil Rights Movement Essay Malcolm X Essay Martin Luther King Essay Did you like this example? During Reconstruction, there was a significant increase of African Americans holding positions very close to white people. They had the right to vote, they held public office, and they sought legislative changes. Jim Crow Laws were a collection of state and local rules that legalized racial segregation, just after all of the progress that was made for African Americans and their rights. Some states that acted like this even went as far as to limit the voting power for blacks. These laws set a general strict rule that said all African Americans in America were separate but equal. This saying was first set by the Supreme Court in the Plessy vs. Fergurson case, a case where a train passenger by the name of Homer Plessy refused to sit in a train car for blacks. This single incident created the saying separate but equal, leading to the significant restraints that very much affected the speed at which African Americans in our country got their full, true freedom. Don’t waste time! Our writers will create an original "The Civil Rights Movements Impact on America" essay for you Create order National Association for the Advancement of Colored People The National Association for the Advancement of Colored People (NAACP) is Americas oldest and largest civil rights organization. First established in 1909 by people such as Martin Luther King Jr, W.E.B. Du Bois, Oswald Garrison Villard, and many more, it was formed in New York City by both black and white activists, in response to the spike of violence against African Americans. The organizations first major focus was actually a silent protest that they put together in 1917. Titled the Anti-Lynching Campaign, this early NAACP project protested lynching and other violence against African Americans. It is said that some 10,000 people participated in this silent protest, naturally making this the organizations main focus for the first few years of its life. The NAACP also had several progressive victories for what they represented. One of their first major victories was that they successfully got the Supreme Court to rule the grandfather clause unconstitutional. This little event was just the beginning of this organization and their constant fight to getting the full freedom they deserve. It is easy to say that without the NAACP; The Civil Rights Movement would not have been so successful in the upcoming years after its formation. The Civil Rights Act The Civil Rights Act was passed on July 2nd, 1964. The act created a gateway for all African Americans to a better life by taking away segregation from the country, after decades of always being treated worthlessly by the majority. Without the Civil Rights Act, we most likely would not be where we are today in regards to equality. The act was the result of many events in prior years where African Americans were segregated and treated poorly only for their skin color. It is incredible that some African Americans were brave enough to stand their ground, because of how long before the Civil Rights Movement began where it was normal to segregate people with darker skin tones. It is events such as The Montgomery Bus Boycott and The Birmingham Church Bombing that really show what it was like to be an African American in this time period. They always had to be mindful of who is in their surroundings and not to go against anyone of more rights. That is, except in the case of Rosa Parks. Montgomery Bus Boycott The Montgomery Bus Boycott was one of the most defining moments in the civil rights movement because it showed the power and passion of the African American community. It all started on December 1st, 1955, when a woman by the name of Rosa Parks was taking a bus on her way home from her workplace at a local grocery store. Back in this time, buses were segregated, so the people riding the buses were separated into two sections, black and white. Parks was seated in the front row of the colored section when the white section became filled up with people. It is common for colored people to stand up when something like this occurs, and since she was seated in the front row of the colored section, Parks was asked to stand up for a white man that needed a seat. She refused to stand up, even when directly instructed by the driver. This occurrence led to the removal of Parks from the bus, along with her arrest. After being bailed out by a local civil rights leader a day later, the entire city population decided to put together a boycott for all city buses. This meant that the entire city population, instead of paying for a bus ride, just walked to their daily destinations, such as work, school, or home. This went on for a long 381 days, until the Montgomery federal court ruled that any law requiring racially segregated seating on buses directly violated the fourteenth amendment (history.com). The city appealed to the U.S. Supreme Court. These improved Montgomery buses were integrated on December 20, 1956. The event of the Montgomery Bus Boycott was one of the first and most powerful instances of The Civil Rights Movement. Without this event, The Civil Rights Movement never would have had such a great starting point and never would have started accelerating and growing as fast as it did. This is why this event and, more importantly, the civil rights movement as a whole, is very important to our country today. March on Washington The March on Washington was a very large organized meeting that happened in the Summer of 1963. More than 200,000 Americans came together to peacefully protest The most notable part of the March on Washington was the speech given by Martin Luther King Jr. It was what is now known as the I Have A Dream speech. King stood up in front of the 200,000+ people and gave what is believed to be his greatest speech yet. One of the most notable lines from the speech is as follows: I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character (King, 1963). This line alone from the speech shows off the main idea that King wants a society in which his children will feel safe to be themselves, rather than hate themselves for who they are. The March on Washington was an event that is still very important to our country today because it shows the unity of over 200,000 people standing up for what they believe in, which is something that our country still has some issues with. Birmingham Church Bombing The Birmingham Church Bombing was a terrorist attack done by the Ku Klux Klan on Sunday, September 15th, 1963, in Birmingham, Alabama. The bombing occurred at the 16th Street Baptist Church, a church that many civil rights organizers such as Martin Luther King Jr would meet. The bomb blast killed four little girls and injured fourteen others. The four girls who lost their lives include eleven-year-old Denise McNair and fourteen-year-olds Addie Mae Collins, Carole Robertson, and Cynthia Wesley. The news of the terrorist attack created widespread national outrage. This bombing had been the third bombing in the area in eleven days. The people of Birmingham were tired of the deadly pattern, so thousands of African American protesters gathered and surrounded the scene of the bombing. This protest quickly got out of control and led to two African American men getting killed, one of them by a cop (history.com). All of this commotion forced Rev. Martin Luther King Jr. to speak up about the matter, creating a sense of control for the people in the area who felt unsafe wherever they turned. The event of the Birmingham Church Bombing was just one of the many, many instances where it was clear that something had to be done about racism and segregation in our country. The Civil Rights Movement used this event to further enhance what could be done to prevent things alike from happening ever again, which makes our world today better for the African American population. Bloody Sunday Bloody Sunday was a day in which a peaceful protest turned into a violent danger zone for anyone attending the Selma to Montgomery march. On March 7, 1965, this protest turned disastrous when police officers were attempting to stop the protesters. When the protesters refused to stop, they were beaten and teargassed, leading to many people being put into the hospital. To top it all off, the entire event was televised. This peaceful protest was being broadcasted to the televisions of people from all around the area, but it ended up being a horrific sight of innocent people being beaten and hospitalized. This event was a defining moment for the Civil Rights Movement because it showed another instance where African Americans were punished for doing nothing apart from standing up for what is right: their freedom. The Life and Assassination of Malcolm X The assassination of Malcolm X all goes back to when he was 21, when he was sent to prison for theft. While in prison, he met a man named Elijah Muhammad. Muhammed was the leader of the Nation of Islam, a different African American political and religious movement. He ended up becoming a part of the Nation of Islam, becoming an active member and even changing his name to Malcolm X all for the organization. After six years of being imprisoned, Malcolm X was released and became a minister of the Nation of Islam in Harlem, New York. After more years of public speaking and leadership experience, Malcolm X decides to leave the Nation of Islam and creates Muslim Mosque Inc, another Islamic organization. He also changed his name to El-Hajj Malik El-Shabazz, which is quite the upgrade from Malcolm X. In 1964, El-Hajj founded the Organization of Afro-American Unity. At this point, Malcolm X has a great life of leadership and success. So naturally, his old friend, Elijah Muhammad, was getting jealous of him. Muhammed thought that he had become too powerful. This led to the worst conclusion imaginable. On February 21, 1965, Malcolm X was shot to his death by members of the Nation of Islam while he was speaking at a rally for the Organization of Afro-American Unity, in New York City. Malcolm Xs assassination was a defining moment in the Civil Rights Movement because he was a strong leader respected by many and was very suddenly brought to a halt, ultimately putting things into perspective for those against his cause. The Assassination of Martin Luther King Jr. On the morning of April 4th, 1968, Reverend Martin Luther King Jr was shot in the neck while standing on the balcony of a motel he was staying in at the time, the Lorraine Motel in Memphis, Tennessee. He was in the area along with other Southern Christian Leadership Conference (SCLC) members to lead a march of sanitation workers that were on strike. King was rushed to a nearby hospital and died about an hour later. He was constantly speaking out to the people, helping anyone that possibly needed it. He was an activist. He had speeches and marches planned for every day he could possibly take, that is how dedicated he was. The last thing everyone expected on that evening was to receive the news of the death of such a respected leader. When news got out about the activists assassination, over 100 surrounding cities started to riot, which ultimately caused a lot more chaos in the situation. After a two-month search for the assassin, a man by the name of James Earl Ray was sentenced to 99 years in prison for the murder of civil rights activist Martin Luther King Jr. There is actually a lot of controversy and conspiracy surrounding the assassination of Martin Luther King Jr. James Earl Jones came out and said that he was not the assassin. This obviously does not give him a free pass home. There was some pretty sufficient evidence against James Earl Ray: Witnesses had seen him running from a boarding house near the Lorraine Motel carrying a bundle; prosecutors said he fired the fatal bullet from a bathroom in that building (history.com, 2010). Despite this surefire evidence, many people, including direct family of King, believe that Jones was a victim of conspiracy (britannica.com). The overall impact of the assassinat ion of Martin Luther King Jr. was quite the eye-opener for the people of our country. King seemed like an unstoppable force, going where he wished and always succeeding in improving the world around him. But the moment they hear about his life being ended with a single bullet for no good reason, it makes people start to really think about the state of America. The Civil Rights Movement reached a new level when King was assassinated. This new level brought up new successes and led to more improvements that still impact our world today. Conclusion In conclusion, the Civil Rights Movement continues to be relevant in our country today because it has gradually led us to a freer and better country. The Montgomery Bus Boycott helped us first start seeing the amount of people that felt the same way about segregation: just enough to purposefully not ride a bus to their daily activities for well over a year. The March on Washington gave the people a glimpse of the thoughts of Civil Rights activist Martin Luther King Jr with his I Have A Dream speech. Bloody Sunday was a terrible event that led to the injury of many of our own citizens. From that, we learned to not make the same mistake again when it comes to protesting and boundaries. The assassination of Malcolm X and Martin Luther King Jr showed everyone from this time era that even the most successful of African Americans are unsafe from the dangers that string from racism. Its for these reasons that the civil rights movement continues to have had a huge impact on our country.

Similarities And Differences Between Psychodynamic...

The first subject discussed is comparing and contrasting the personality approaches to personality. This includes subjects of Psychodynamic Approaches, Trait, Learning, Biological and Evolutionary, and Humanistic Approaches. The second subject discussed is how binge eating becomes the abnormal behavior or the eating disorder called Bulimia Nervosa. How there are other abnormal behaviors associated with the disorder as well. The last subject discussed is homosexuality in terms whenever it was taken from the Diagnostic and Statistical Manual of Mental Disorders. Assignment 6.1 The essay defines personality approaches and how they are different but similar as well. Also, an abnormal behavior called Bulimia Nervosa located in a Diagnostic manual terms. Homosexuality no longer listed in the manual as a mental disorder. Compare and Contrast The question sates ‘Compare and contrast Psychodynamic Approaches, Trait, Learning, Biological and Evolutionary, and Humanistic Approaches to personality. Which approach to personality do you find the most compelling? Why?’ First, the approach to personality that I found most compelling was Biological and Evolutionary Approach. The reason I found this so compelling is because I can agree with what the approach means. â€Å"Biological and Evolutionary Approaches to personality are theories that suggest that important components of personality are inherited.† (Feldman, R. 2010. P. 366) In my own words this approach is saying that there areShow MoreRelated2301 Final Exam Workbook Essay6573 Words   |  27 PagesCommunity College Teaching. _____ Dr. Lopez calculated the correlation between his students rates of absence and their exam scores and found that the two variables were positively associated. _____ Dr. Lopez planned to track students attendance and exam scores and to correlate these two variables at the end of the semester. _____ Dr. Lopez inferred that the data he collected supported his hypothesis regarding the relationship between attendance and exam scores. Objective 1.3 Describe the major schoolsRead MoreEssay about 2301 Final Exam Workbook 2 6510 Words   |  27 PagesCommunity College Teaching. _____ Dr. Lopez calculated the correlation between his students rates of absence and their exam scores and found that the two variables were positively associated. _____ Dr. Lopez planned to track students attendance and exam scores and to correlate these two variables at the end of the semester. _____ Dr. Lopez inferred that the data he collected supported his hypothesis regarding the relationship between attendance and exam scores. Objective 1.3 Describe the major schoolsRead MorePsychology Workbook Essay22836 Words   |  92 PagesI. INTRODUCTION Objective I.1 Define psychology: the science of behavior and mental processes. |Margin Learning Question(s) (if applicable) |Page(s) | |None | | Key Terms Psychology: the science of behavior and mental processes. Exercises 1. Put a check mark

National Ideology Rukun Negara free essay sample

The NEP is a process of â€Å"social engineering† based on social contract formulated in 1957 to achieve the goal of racial unity through the eradication of poverty and restructuring of society. The national ideology goal was also assimilated in the National Mission i. e. a policy framework and implementation to achieve the goals of Vision 2020. The National Mission aims to enhance Malaysias capacity to compete globally, to strengthen national unity and to bring about a better distribution of income and wealth as well as higher quality of life among the people.The New Economic Model (2011-2020) and Tenth Malaysia Plan (2011-2015) also continue to emphasise on improving potential income and educational and skills attainment of low-income households. The strategy is also designed to improve the standard of living of marginalised groups from the mainstream of economic development encompassing the ethnic communities of Sabah and Sarawak, Orang Asli in Peninsular Malaysia, providing financial assistance, and increasing access to infrastructure in Chinese new villages, and plantation workers. We will write a custom essay sample on National Ideology Rukun Negara or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page According to Prime Minister Datuk Seri Najib Tun Razak when unveiling the NEM, â€Å"The original objectives of the NEP are still relevant. However, it is time for us to reassess its implementation. We will target the achievement of common goals but by changing the way we carry it out. † The 1Malaysia concept which also includes the â€Å"growth and equitable distribution of wealth† should be interpreted in terms of implementation, which is how fair, equitable and togetherness will be integrated with the national ideology, especially on matters enshrined in the Federal Constitution.It is closely related to the national ideology as spelt out that â€Å"the national wealth will be divided equitably† and â€Å"resolving to achieve unity of the people† as embodied in Rukun Negara. The main challenge now is how to integrate a culture of excellence and the principle of meritocracy through the distribution of the economic cake with the concept of opportunity for all as espoused in the national ideology by formulating development plans with the ultimate objective of achieving a developed nation status without casting aside the national ideology i. e. Rukun Ne gara.

Timber free essay sample

Timber Classifications (slides 3-16) Most commonly used types of timber (slide 17) Brief description, pictures uses of most commonlyused timber in Sri Lanka ( 19-26) Timber Classifications Supper Luxury Class Teak Ebony Nedun Calamander Tectona grandis Diospyros ebenum Pericopsis mooniana Diospyros quaesita Timber Classifications Luxury Class Satin Halmilla Milla Mahogany (narrow leaves) Mahogany (broad leaved) Jak Chloroxylon swietenia Berrya cordifolia Vitex pinnata Swietenia microphyla Swetenia Macrophylla Artocarpus heterophyllus Timber Classifications Special Class Upper Gammalu Hulanhik Pterocarpus marsapium Chukrasia velutina Margosa Suriyamara, Wewarana Kolon Velang Palu Azadirachta indica Albizia odoratissima Alseodaphane semecarpifolia Adina cardifolia Pterospermum canescens Manickara hexandra Timber Classifications Special Class Tamarind (Hard Wood), Kumbuk Tamarindus indica Terminalia arjuna Eucalyptus microcorys Timber Classifications Class 1 Tawwanna Uva Mandora Munamal Ubberiya Eucalyptus Pilularis Eucalyptus Pilularis, Aceasia Melanoxylon Palacuium rubiginosum Hopea cordifolia Mimusops elengi Carallia calycina Eucalyptus Pilularis Eucalyptus Pilularis, Aceasia Melanoxylon Page 1 Timber Classifications Class 1 Hora Kirihambiliya Dipterocarpus zeylanicus Palaquium grande Page2 Urukanu or Uruhonda Mandora Pihimbiya Ginikulu Lasianthera apicalis Vertica chinensis Filicium decipiens Diospyros oocarpa Halamba Del Liyan Mitragyna parvifolia Artocarpus nobills Homalium zeylanicum Timber Classifications Class 1 Panakka Neralu Madan Pleurostylia opposita Elaeodendron Glausum Syzygium Cumini Page3 Koon Na Pathkela Keeriya Paramara Hedawaka Schleichera eleosa Mesua ferrea Bridelia Mooni / Acacialeucophloea Samamea saman Chaetocarpus castanocarpus Treated Grandis Eucalyptus grandis Timber Classifications Class 2 Alubo Dawata Dawul-Kurundu Godapara Halmandora Panamora Wa Wellpenna Toona Syzygium Makul Carallia brachiata Neolitssa cassia Dillenia retusa Vatica offinis Doona oblonga Cassia siamea Amisophyllea cinnamocides Cedrella toona Page1 Timber Classifications Class 2 Mihiriya Damba Karaw Panu-Dan Rathatiya Thimbiri Dorana Na-Imbul Gonapana Cordonia zeylanica Syzygium gardneri Prosouus indicus Syzyjium spp Palaquium thwaitsii Diospyros embryopteria Diptejacarpus glandulosus Harpullia arborsa Garcinia spicata Page2 Timber Classifications Class 2 Kosganna Kiripedda Talang Eucalyptus Grandis Cypress Ethdemata Ginisapu Ehela Kirikoon Dunumandala Boron Treated Sawn Rubberwood, Ficus altissima Palaquium grande Listea gardneri Eucalyptus Grandis Cupresus macrocarpa / Gmelina arborea Michelia champaca Cassia fistula Walsura piscidia / stevosperm tetragonnm Hevea braciliensis Page3 Timber Classifications Class 2 Alastonia (Havari Nuga) Boron Treated Sawn Pinus Eucalyptus Robusta (Red Gum) Blue Gum, Alstonia macrophylla Pinus spp Eucalyptus Robusta (Red Gum) Eucalyptus globulus Page 4 Comporta Redness Coconut Thiththeta. We will write a custom essay sample on Timber or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page All Doona and shorea spp:except doona congestiflora All calophyllum spp: species other than calaphyllum bracteatum Aporesa cardiosperma Trichadenia zeylanica All Doona and shorea spp:except doona congestiflora All calophyllum spp: species other than calaphyllum bracteatum Timber Classifications Class 3 Aridda Malaboda Diyathaliya Pinus Lunumedella Kalu-Sudu Thalambu Atamba Bulu Kahata Mangifera zeylanica Terminalia belerica Careya arbovea Compnosperma zeylanica Myristica dactylosdes Mastixia tetrandra Pinus spp: Melia dulia Page 1 Timber Classifications Class 3 Rubber Rata-amba (Mango) Ratadel Godakaduru Gokalu Sabbukku(Gravilliya) Accacia Decaran Strychuos nuxvomica Garcinia morella Gravillea robusta Accacia Decaran Page 2 Hevea braciliensis Mangifera indica Athdemata Godakirilla Gmelina arborea Holoptelea integrifolia Timber Classifications Class 3 Mara Kataboda Goraka Tammarin(Sapwood) Bakme Kakuna Casurina(Kasa Kasa) Page 3 Albizzia molucana Cullenia ceylonica Garcinia cambogia Tamarindus indica Nauclea orientalis Canarium zeylanicum Casuarina equisetifolia Beth-hik Davu. Lannea coromandelica Anogeissus latifolia Most commonly used types of Timber Kumbuk /Arjun/White mardah  » Burutha (Satin wood)  » Nedun  » Mara  » Halmilla /Trincomalee wood/Petwood  » Teak ( Sri Lankan)  » Calamander  » Jak (D. quaesita) (Artocarpus heterophylum) (Terminalia Arjuna) (Chloroxylon swetenia DC. ) (Pericopsis Mooniana) (Albizia Odoratissima) (Berrya cordifolia ) Description of tree Kumbuk /Arjun/White mardah-(Terminalia Arjuna) The tree yields a d ense timber which in modern times is being used for furniture, flooring and decking (both outdoor/indoor), heavy and light construction and in the past railway sleepers and boat building. Kumbuk is the most majestic beautiful of all other trees and its timber is one of the most attractive in the world Description of tree Burutha (Satin wood)-(Chloroxylon swetenia DC. ) The Satinwood or Burutha is a large tree growing upto 30 m. The tree has a characteristically grayish green appearance and feathery crown. The wood is hard and heavy and when polished has a lustrous, satiny, honey coloured grain. It is prized for making furniture and also for building purposes. Description of tree Nedun-(Pericopsis Mooniana) Is found on the western coast, from the southwestern province to the Sabaragamuwa Province, including the hill country. Chocolate brown in color with striking grain, this wood has a lustrous polish and color that deepens with age. Description of tree Mara -(Albizia labbek) Is a rare and valuable tree found bordering forest areas. This tree produces a long straight bole and when polished takes on a gold luster. Description of tree Halmilla /Trincomalee wood/Petwood-(Berrya cordifolia ) This is found in the low land dry zone encircling the central mountains. It has a brownish color, is easy to work, and takes on a good polished look. The wood was also used for arrack casks as it is durable and lends itself to bending. Description of tree Teak (Tectona grandis) Teak is a close grained hardwood. This makes it possible to cut joints very accurately and makes it suitable for carving as the close grain means it can be carved to include great detail. It is one of the hardest, strongest and most durable of all natural woods. Resistant to rotting and to the effects of hot sun, rain, frost or snow, making it most suitable for outside. Description of tree Calamander (D. quaesita) Calamander wood or Coromandel wood is a valuable wood from India, Sri Lanka (Ceylon) and South East Asia. It is of a hazel-brown color, with black stripes (or the other way about), very heavy and hard. It is also known as Macassar Ebony or variegated ebony and is closely related to genuine ebony, but is obtained from different species in the same genus; one of these is Diospyros quaesita Thwaites, from Sri Lanka. The name Calamander comes from the local sinhalese name, kalu-medhiriya, which means dark chamber; referring to the characteristic ebony black wood. It is used in furniture, Luthiery and for sculpture. Description of tree Jak (Artocarpus heterophylum) The golden yellow-coloured timber with good grains is used for building furniture and house construction . Jackfruit wood is widely used in the manufacture of furniture, doors and windows, and in roof construction. The heartwood is used by Buddhist forest monastics in Southeast Asia as a dye, giving the robes of the monks in those traditions their distinctive light-brown color.

The Effects of Globalisation on Labour Markets, Productivity and Inflation Essay Example

The Effects of Globalisation on Labour Markets, Productivity and Inflation Essay The Effects of Globalisation on Labour Markets, Productivity and Inflation Nigel Pain, Isabell Koske OECD Meeting of Heads of National Economic Research Organisations at OECD Headquarters June 15 2007, Paris. Over the past decades international economic integration has proceeded rapidly. Trade in Goods and Services Exports plus imports to GDP (current US$) Foreign Direct Investment Assets plus liabilities to GDP (current US$) 300% 250% 200% 150% 100% 50% World OECD 60% 50% 40% 30% 20% 10% OECD World Non-OECD Non-OECD 0% 1980 1985 1990 1995 2000 2005 0% 1980 1985 1990 1995 2000 2005 Globalisation has been proceeding for many years. The pace of economic integration has been particularly marked since the mid1990s – suggesting structural changes in the impact may have occurred. 2 2 New developments that may have affected the impact of globalisation on OECD economies The marked increase in the extent and pace of integration since the mid-1990s The integration of China and India into the global economy – significantly boosting global labour supply Development of international production networks: the fragmentation of production across borders via international outsourcing and offshoring; international trade in tasks Foreign competition spreading into previously sheltered sectors and occupations via ICT-enabled offshoring and market entry. Financial globalisation Such developments, common to all OECD economies, have prompted a re-assessment of the impact of globalisation. Globalisation now affects particular tasks and occupations as 3 3 well as firms/sectors. The Globalisation and Structural Adjustment Project 2005-07 This had three main components: The macroeconomic effects of globalisation labour markets, inflation, policy challenges from the future evolution of globalisation. The sectoral impact of trade on labour markets The effects of the outsourcing of business services The project examined the policy challenges from: The spread of global trade production networks and IT-enabled global sourcing. The impact of non-OECD economies on commodity markets and competition pressures in the OECD. Financial globalisation. A final report was provided to Ministers in May 2007 4 4 We will write a custom essay sample on The Effects of Globalisation on Labour Markets, Productivity and Inflation specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Effects of Globalisation on Labour Markets, Productivity and Inflation specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Effects of Globalisation on Labour Markets, Productivity and Inflation specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The current phase of globalisation has coincided with structural reforms in OECD labour markets The impact of globalisation is occurring against a background of widespread reforms to labour market institutions (see the Restated OECD Jobs Strategy) – for example: Reductions in product market and labour market regulations Activation of the unemployed Increased responsiveness of wage setting to supply/demand pressures Reductions in tax wedges All these affect wage and employment outcomes. Other things being equal, they should have acted to reduce structural unemployment. Attempts to quantify the impact of globalisation have to allow for other (potentially endogenous) sources of structural change. 5 5 The labour share of GDP has fallen, but real wages have grown robustly in most OECD countries. Labour Income Shares 0. 7 0. 65 0. 6 0. 55 0. 5 0. 45 0. 4 1980 1 2 OECD economies (weighted average) Real Compensation per Employee 150 140 OECD1 USA JPN FRA 110 100 DEU 1980 1 Income share of labour 1 130 120 Income share of employees2 1985 1990 1995 2000 2005 1985 1990 1995 2000 2005 Dependent employees and self-employed. Dependent employees (private and government sectors). Weighted average; country coverage varies according to data availability. The decline in the labour share began before the mid-1990s. In accounting terms, the labour share decline is due to labour productivity rising faster than real wages. 6 6 Real wage growth over the past decade is not correlated with trade openness. 5% 4% GRC POL ISL CZE NOR TUR PRT SWE GBR USA FIN DNK NZL KOR AUS CAN FRA CHE AUT JPN ESP DEU ITA MEX SVK HUN IRL BEL NLD Real wage growth1 3% 2% 1% 0% -1% -2% 0% 20% 40% 60% 80% 100% 120% 140% 160% Trade openness2 1Annual averages, 1995 to most recent observation. 2Exports plus imports to GDP, average 1995 – 2006. 7 Real wage growth was somewhat stronger in countries where openness rose the fastest. 5% 4% GRC NOR PRT SWE ISL POL CZE HUN Real wage growth1 3% TUR IRL SVK GBR 2% USA NZL DNK FIN KOR FRA AUS CAN BEL 1% AUT CHE NLD JPN DEU 0% ITA ESP -1% -2% 0% 2% 4% 6% 8% 10% MEX LUX 12% Change in trade openness2 averages, 1995 to most recent observation. 2Percenta ge point change in the ratio of exports plus imports to GDP, average 1995 – 2006. 1Annual 8 8 Despite real wage growth, earnings inequality has risen, especially in the top half of the distribution. Earnings inequality in OECD countries P90, P50, and P10 denote the 90th, 50th, and 10th percentiles of the distribution of earnings for full-time employees. Source: OECD Employment Outlook (2007), forthcoming. Wages of more skilled workers have risen relative to those of less skilled workers, though not in all countries. This is one source of political concerns about globalisation. 9 9 Possible labour market impacts of trade and international production networks Lower-skilled tasks can be moved to lower (unit) cost locations potential productivity gains for domestic industries rising trade will coincide with rising skill-related premia Substitution of employment between home and host locations is more likely for cost-saving investments and the larger the host relative to the home country. Possible implications include: Domestic labour demand is more sensitive to domestic wages Employment adjusts more rapidly to changes in desired labour demand (via output, real labour costs, technical change etc. ) Firms have an exit option which, even if not exercised, raises the relative bargaining power of employers. Impact on wage bargains will depend on the preferences of those involved the level at which bargaining takes place. 10 10 Foreign affiliate employment rose relative to domestic employment between 1992-2003 in all sectors in the G3 Ratio of U. S. Foreign Affiliate Employment to Employment in the U. S. (%) Business Services Financial Services Telecoms Transportation Trade Transport Equipment Electrical Optical Machinery Metals Chemicals Pulp Paper Textiles Food, Beverages Tobacco 0. 0 10. 0 20. 0 30. 0 40. 0 50. 0 60. 0 70. 0 2003 1992 There are marked differences across sectors. The data for Japan and Germany show a similar pattern to the US. 11 11 Empirical evidence from the GSA project (and IMF work) suggests globalisation is affecting the labour market. No evidence of aggregate impact on employment levels or growth. Globalisation is one factor contributing to the decline in the labour income share and the rising returns for skilled workers. But it only accounts for a small part of these trends. Technological change and changes in labour market institutions are more important. Evidence for some industries, especially in manufacturing, that globalisation raises the wage elasticity of labour demand: Outward FDI raises the long-run wage elasticity of labour demand (0. 8%1. 0%) Trade raises the short-run wage elasticity of labour demand (0. 2% in mid1980s 0. % early 2000s) For the US, employment growth in US-owned foreign affiliates has positive correlation with employment at home; for Japan, the correlation is negative (controlling for sales and costs). 12 12 Globalisation also has positive effects on productivity levels and growth in OECD economies. Greater specialisation in areas of comparative advantage. Better access to foreign kno wledge (inward and outward FDI). Using intermediate inputs produced offshore may boost home productivity growth (Grossman and Rossi-Hansberg, 2006) Benefits of enhanced competitive pressure in product markets. The OECD Growth Project found that a 10% pt increase in trade openness was associated with a 4% rise in income per capita. Work for GSA (for 9 global regions) found that enhanced openness raises the rate of convergence of GDP per capita to US levels. Labour market work for GSA found evidence that outward FDI and the international outsourcing of intermediate inputs can raise productivity in home economies. 13 Summary of labour market impacts of globalisation (from trade and FDI – migration will add to these) Globalisation is associated with rising living standards The benefits are not shared automatically by all workers Globalisation is one factor generating structural change The ongoing globalisation process is one factor helping to dampen wage inflation and reduce the labour income share. These may be one-time changes, albeit prolonged. The higher wage elasticity of labour demand raises potential gains in employment from labour-market reforms, but also raises the potential volatility of workers labour market outcomes. Labour market developments are becoming more closely linked with those in other countries. One channel for global factors to influence domestic cost growth. Increasingly important to put policies in place to help labour market adjustment in OECD economies. 14 There are reasons to believe that the labour market challenges could increase further. Vertical multinationals production fragmentation become more likely as trade and communication costs fall and as location becomes possible in countries with different factor endowments. China India have significant reserves of underemployed labour. OECD estimates suggest that up to 20% of occupations in the major economies are potentially offshorable (high ICT content). 15 Globalisation has coincided with changes in the short-run association between labour market pressures wage growth. 15 ? Total Compensation per Employee (in %) 15 10 5 ? Total Compensation per Employee (in %) 10 1975-1984 1985-1994 1995-2006 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 0 -1 -0. 5 -5 0 0. 5 1 Unemployment Gap (in %) 1. 5 2 0 -2 -1 United States 15 ? Total Compensation per Employee (in %) 10 30 Japan ?Total Compensation 25 per Employee (in %) 20 15 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 2. 5 3 -2 -1 10 5 0 0 1 2 3 Unemployment Gap (in %) 4 5 6 0 -1 -0. 5 Euro Area United Kingdom 16 The lines are fitted regression lines through the actual quarterly data for the period. Globalisation has coincided with changes in the short-run association between labour market pressures unit cost growth. 15 ? ULC (in %) 15 10 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 7 0 -1 -0. 5 -5 30 25 20 15 ?ULC (in %) 10 1975-1984 1985-1994 1995-2006 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 0 -2 -1 United States 15 ? ULC (in %) Japan ?ULC (in %) 10 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 2. 5 3 3. 5 -2 -1 10 5 0 0 1 2 3 4 0 -1 -0. 5 Unemployment Gap (in %) 5 6 7 Euro Area United Kingdom 17 The lines are fitted regression lines through the actual quarterly data for the period. Globalisation has coincided with changes in the short-run association between labour market pressures inflation. 15 ? PCP (in %) 15 10 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 0 -1 -0. 5 -5 0 0. 5 1 Unemployment Gap (in %) 1. 5 2 ? PCP (in %) 10 1975-1984 1985-1994 1995-2006 5 0 -2 -1 United States 15 ? PCP (in %) 30 25 20 15 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 2. 5 3 -2 -1 10 5 0 Japan ?PCP (in %) 10 0 -1 -0. 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 Euro Area United Kingdom 18 The lines are fitted regression lines through the actual quarterly data for the period. Globalisation has coincided with changes in the relationship between labour market pressures inflation. The short-run Phillips curve has become more horizontal over time, both for labour costs and for price inflation. Also apparent using the change rather than the level of inflation. Movements in the unemployment (and output) gap have smaller effects on inflation than before. This can reflect many factors – globalisation, other structural labour market changes, better anchored inflation expectations and changes in monetary policy frameworks. The flattening of the Phillips curve began before globalisation accelerated in the mid-1990s: Better anchored inflation expectations may be more important. The role of globalisation is an empirical matter. Competition could even make prices more responsive to activity. 19 The impact of globalisation on price inflation is examined in Pain, Koske and Sollie (2006). The analysis has three steps: Calculation of the direct impact of rising lower-cost imports from emerging economies on inflation rates in selected OECD economies using a simple accounting framework. Analysis of the impact of global economic conditions on oil and non-oil commodity prices. Empirical analysis of the wider impact of globalisation on consumer prices in 21 OECD economies, over 1980-2005 Test whether inflation dynamics changed in the mid-1990s. Quantification of the impact of globalisation on prices and inflation through a scenario analysis that distinguishes the impact of non-commodity and commodity import prices. 20 [1] Main findings of the accounting analysis: The combined impact effect of lower-cost imports from China and other dynamic Asian economies has reduced domestic inflation by 0. percentage points per annum in the United States (from 1996 to 2005); by 0. 3 percentage points per annum in the euro area (from 2000 to 2005). Calculations from a number of studies (Federal Reserve, ECB) suggest that imports from lower cost producers have pushed down non-commodity import price inflation by between 1 and 2 percentage points per annum over the last decade. 21 [2] Gl obalisation and commodity prices: empirical results. Strong GDP growth in the non-OECD economies since 2000 has been an important factor behind the recent growth of real oil prices and real metals prices. A scenario analysis of setting the growth rate of non-OECD economies equal to the (lower) growth rate of the OECD economies from 2000 onwards reveals that oil prices would have been 20-40% lower than the baseline in the fourth quarter of 2005; real metals prices would have been 10% lower than the baseline. This removes some, but not all of the strong growth in oil and metals prices over recent years. 22 [3] The price equation estimated jointly (SUR) for 21 OECD countries using quarterly data for 1980-2005 is: ? ln P = ? + i,t 0i ? ? SH M SH ? ln P ? M ? [1 ? M ln P ] ln C ? ? 1i ? i,t ? 1 1i i, t ? 1 i, t ? 1 1i i,t ? 1 i,t ? 1 ? ? 4 4 4 M + ? ? ? ln P C + ? GAP + ? ? ji ? ln Pi,t ? j + ? ? ji ? ln Pi,t ? j +? ji i,t ? j 3i i,t ? 1 it j =1 j=0 j =0 P, PM and C denote consumer prices (CED), import prices of goods plus services and domestic unit labour costs MSH denotes the import share of domestic demand (rolling regressions without this term showed a rise in ? 1 over time) GAP is th e domestic output gap Cross-equation parameter restrictions imposed if data permits ? 1 found to be significantly larger from 1995Q1 onwards 23 3] The impact of globalisation on price inflation The long-run influence of import prices on domestic consumer prices has risen since the mid-1990s. This reflects two factors: a rise in import penetration in OECD economies; the impact of import competition on competitors’ prices. The impact of import prices on domestic consumer prices is larger in small open economies. The cyclical sensitivity of inflation to domestic economic conditions declined between 1981-1994 and 1995-2005. No robust significant additional impact from the global output gap. Global conditions are already reflected in import prices). The separate commodity and consumer price findings are combined in a set of scenario analyses. These show that ex-ante inflationary pressures in most OECD economies would have been moderately higher in the absence of globalisation 24 Impact on consumer price inflation from removing globalisation effects 2000-05. Average percentage point difference per annum Commodity . Non-commodity Component . component . Japan Canada OECD United States United Kingdom Germany France Euro Area Italy Net effect -0. 4 -0. 2 0. 0 0. 2 0. -0. 2 0. 0 0. 2 0. 4 Lower bound of commodity import price effect (20% oil, 10% metals) Upper bound of commodity import price effect (40% oil, 10% metals) Lower bound of non-commodity import price effect (1%) Upper bound of non-commodi ty import price effect (2%) Lower bound of net effect Upper bound of net effect Range of possible impact These estimates are for given labour costs. To the extent that globalisation also affected labour cost growth, the net implicit disinflationary impact of globalisation may be even higher. 25 Concluding comments and issues for discussion [1] Globalisation is clearly affecting labour market outcomes in the OECD, and also domestic price inflation. Can the various impacts can be expected to persist for some time? The existing impact appears modest – will it rise in the future? Estimating underlying inflationary pressures is more complicated: Globalisation affects commodity and non-commodity prices The flatter Phillips curve raises the difficulties of identifying where the economy is relative to potential. Does this have implications for the conduct of monetary policy? 26 Concluding comments and issues for discussion [2] Globalisation raises the need for labour market flexibility (job reallocation) but also raises fears about job insecurity and widening earnings inequality. What are the appropriate policies to deal with these concerns? Enhancing potential job creation and labour market adjustment: greater product market competition reduced employment protection legislation Education/training policies to equip workers with general skills Direct adjustment assistance to displaced workers: Transitional income support (and health coverage) Full occupational pension portability Active labour market programmes for updating skills and improving job search. 27 The Effects of Globalisation on Labour Markets, Productivity and Inflation Essay Example The Effects of Globalisation on Labour Markets, Productivity and Inflation Essay The Effects of Globalisation on Labour Markets, Productivity and Inflation Nigel Pain, Isabell Koske OECD Meeting of Heads of National Economic Research Organisations at OECD Headquarters June 15 2007, Paris. Over the past decades international economic integration has proceeded rapidly. Trade in Goods and Services Exports plus imports to GDP (current US$) Foreign Direct Investment Assets plus liabilities to GDP (current US$) 300% 250% 200% 150% 100% 50% World OECD 60% 50% 40% 30% 20% 10% OECD World Non-OECD Non-OECD 0% 1980 1985 1990 1995 2000 2005 0% 1980 1985 1990 1995 2000 2005 Globalisation has been proceeding for many years. The pace of economic integration has been particularly marked since the mid1990s – suggesting structural changes in the impact may have occurred. 2 2 New developments that may have affected the impact of globalisation on OECD economies The marked increase in the extent and pace of integration since the mid-1990s The integration of China and India into the global economy – significantly boosting global labour supply Development of international production networks: the fragmentation of production across borders via international outsourcing and offshoring; international trade in tasks Foreign competition spreading into previously sheltered sectors and occupations via ICT-enabled offshoring and market entry. Financial globalisation Such developments, common to all OECD economies, have prompted a re-assessment of the impact of globalisation. Globalisation now affects particular tasks and occupations as 3 3 well as firms/sectors. The Globalisation and Structural Adjustment Project 2005-07 This had three main components: The macroeconomic effects of globalisation labour markets, inflation, policy challenges from the future evolution of globalisation. The sectoral impact of trade on labour markets The effects of the outsourcing of business services The project examined the policy challenges from: The spread of global trade production networks and IT-enabled global sourcing. The impact of non-OECD economies on commodity markets and competition pressures in the OECD. Financial globalisation. A final report was provided to Ministers in May 2007 4 4 We will write a custom essay sample on The Effects of Globalisation on Labour Markets, Productivity and Inflation specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Effects of Globalisation on Labour Markets, Productivity and Inflation specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Effects of Globalisation on Labour Markets, Productivity and Inflation specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The current phase of globalisation has coincided with structural reforms in OECD labour markets The impact of globalisation is occurring against a background of widespread reforms to labour market institutions (see the Restated OECD Jobs Strategy) – for example: Reductions in product market and labour market regulations Activation of the unemployed Increased responsiveness of wage setting to supply/demand pressures Reductions in tax wedges All these affect wage and employment outcomes. Other things being equal, they should have acted to reduce structural unemployment. Attempts to quantify the impact of globalisation have to allow for other (potentially endogenous) sources of structural change. 5 5 The labour share of GDP has fallen, but real wages have grown robustly in most OECD countries. Labour Income Shares 0. 7 0. 65 0. 6 0. 55 0. 5 0. 45 0. 4 1980 1 2 OECD economies (weighted average) Real Compensation per Employee 150 140 OECD1 USA JPN FRA 110 100 DEU 1980 1 Income share of labour 1 130 120 Income share of employees2 1985 1990 1995 2000 2005 1985 1990 1995 2000 2005 Dependent employees and self-employed. Dependent employees (private and government sectors). Weighted average; country coverage varies according to data availability. The decline in the labour share began before the mid-1990s. In accounting terms, the labour share decline is due to labour productivity rising faster than real wages. 6 6 Real wage growth over the past decade is not correlated with trade openness. 5% 4% GRC POL ISL CZE NOR TUR PRT SWE GBR USA FIN DNK NZL KOR AUS CAN FRA CHE AUT JPN ESP DEU ITA MEX SVK HUN IRL BEL NLD Real wage growth1 3% 2% 1% 0% -1% -2% 0% 20% 40% 60% 80% 100% 120% 140% 160% Trade openness2 1Annual averages, 1995 to most recent observation. 2Exports plus imports to GDP, average 1995 – 2006. 7 Real wage growth was somewhat stronger in countries where openness rose the fastest. 5% 4% GRC NOR PRT SWE ISL POL CZE HUN Real wage growth1 3% TUR IRL SVK GBR 2% USA NZL DNK FIN KOR FRA AUS CAN BEL 1% AUT CHE NLD JPN DEU 0% ITA ESP -1% -2% 0% 2% 4% 6% 8% 10% MEX LUX 12% Change in trade openness2 averages, 1995 to most recent observation. 2Percenta ge point change in the ratio of exports plus imports to GDP, average 1995 – 2006. 1Annual 8 8 Despite real wage growth, earnings inequality has risen, especially in the top half of the distribution. Earnings inequality in OECD countries P90, P50, and P10 denote the 90th, 50th, and 10th percentiles of the distribution of earnings for full-time employees. Source: OECD Employment Outlook (2007), forthcoming. Wages of more skilled workers have risen relative to those of less skilled workers, though not in all countries. This is one source of political concerns about globalisation. 9 9 Possible labour market impacts of trade and international production networks Lower-skilled tasks can be moved to lower (unit) cost locations potential productivity gains for domestic industries rising trade will coincide with rising skill-related premia Substitution of employment between home and host locations is more likely for cost-saving investments and the larger the host relative to the home country. Possible implications include: Domestic labour demand is more sensitive to domestic wages Employment adjusts more rapidly to changes in desired labour demand (via output, real labour costs, technical change etc. ) Firms have an exit option which, even if not exercised, raises the relative bargaining power of employers. Impact on wage bargains will depend on the preferences of those involved the level at which bargaining takes place. 10 10 Foreign affiliate employment rose relative to domestic employment between 1992-2003 in all sectors in the G3 Ratio of U. S. Foreign Affiliate Employment to Employment in the U. S. (%) Business Services Financial Services Telecoms Transportation Trade Transport Equipment Electrical Optical Machinery Metals Chemicals Pulp Paper Textiles Food, Beverages Tobacco 0. 0 10. 0 20. 0 30. 0 40. 0 50. 0 60. 0 70. 0 2003 1992 There are marked differences across sectors. The data for Japan and Germany show a similar pattern to the US. 11 11 Empirical evidence from the GSA project (and IMF work) suggests globalisation is affecting the labour market. No evidence of aggregate impact on employment levels or growth. Globalisation is one factor contributing to the decline in the labour income share and the rising returns for skilled workers. But it only accounts for a small part of these trends. Technological change and changes in labour market institutions are more important. Evidence for some industries, especially in manufacturing, that globalisation raises the wage elasticity of labour demand: Outward FDI raises the long-run wage elasticity of labour demand (0. 8%1. 0%) Trade raises the short-run wage elasticity of labour demand (0. 2% in mid1980s 0. % early 2000s) For the US, employment growth in US-owned foreign affiliates has positive correlation with employment at home; for Japan, the correlation is negative (controlling for sales and costs). 12 12 Globalisation also has positive effects on productivity levels and growth in OECD economies. Greater specialisation in areas of comparative advantage. Better access to foreign kno wledge (inward and outward FDI). Using intermediate inputs produced offshore may boost home productivity growth (Grossman and Rossi-Hansberg, 2006) Benefits of enhanced competitive pressure in product markets. The OECD Growth Project found that a 10% pt increase in trade openness was associated with a 4% rise in income per capita. Work for GSA (for 9 global regions) found that enhanced openness raises the rate of convergence of GDP per capita to US levels. Labour market work for GSA found evidence that outward FDI and the international outsourcing of intermediate inputs can raise productivity in home economies. 13 Summary of labour market impacts of globalisation (from trade and FDI – migration will add to these) Globalisation is associated with rising living standards The benefits are not shared automatically by all workers Globalisation is one factor generating structural change The ongoing globalisation process is one factor helping to dampen wage inflation and reduce the labour income share. These may be one-time changes, albeit prolonged. The higher wage elasticity of labour demand raises potential gains in employment from labour-market reforms, but also raises the potential volatility of workers labour market outcomes. Labour market developments are becoming more closely linked with those in other countries. One channel for global factors to influence domestic cost growth. Increasingly important to put policies in place to help labour market adjustment in OECD economies. 14 There are reasons to believe that the labour market challenges could increase further. Vertical multinationals production fragmentation become more likely as trade and communication costs fall and as location becomes possible in countries with different factor endowments. China India have significant reserves of underemployed labour. OECD estimates suggest that up to 20% of occupations in the major economies are potentially offshorable (high ICT content). 15 Globalisation has coincided with changes in the short-run association between labour market pressures wage growth. 15 ? Total Compensation per Employee (in %) 15 10 5 ? Total Compensation per Employee (in %) 10 1975-1984 1985-1994 1995-2006 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 0 -1 -0. 5 -5 0 0. 5 1 Unemployment Gap (in %) 1. 5 2 0 -2 -1 United States 15 ? Total Compensation per Employee (in %) 10 30 Japan ?Total Compensation 25 per Employee (in %) 20 15 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 2. 5 3 -2 -1 10 5 0 0 1 2 3 Unemployment Gap (in %) 4 5 6 0 -1 -0. 5 Euro Area United Kingdom 16 The lines are fitted regression lines through the actual quarterly data for the period. Globalisation has coincided with changes in the short-run association between labour market pressures unit cost growth. 15 ? ULC (in %) 15 10 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 7 0 -1 -0. 5 -5 30 25 20 15 ?ULC (in %) 10 1975-1984 1985-1994 1995-2006 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 0 -2 -1 United States 15 ? ULC (in %) Japan ?ULC (in %) 10 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 2. 5 3 3. 5 -2 -1 10 5 0 0 1 2 3 4 0 -1 -0. 5 Unemployment Gap (in %) 5 6 7 Euro Area United Kingdom 17 The lines are fitted regression lines through the actual quarterly data for the period. Globalisation has coincided with changes in the short-run association between labour market pressures inflation. 15 ? PCP (in %) 15 10 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 0 -1 -0. 5 -5 0 0. 5 1 Unemployment Gap (in %) 1. 5 2 ? PCP (in %) 10 1975-1984 1985-1994 1995-2006 5 0 -2 -1 United States 15 ? PCP (in %) 30 25 20 15 5 Unemployment Gap (in %) 0 0. 5 1 1. 5 2 2. 5 3 -2 -1 10 5 0 Japan ?PCP (in %) 10 0 -1 -0. 5 Unemployment Gap (in %) 0 1 2 3 4 5 6 Euro Area United Kingdom 18 The lines are fitted regression lines through the actual quarterly data for the period. Globalisation has coincided with changes in the relationship between labour market pressures inflation. The short-run Phillips curve has become more horizontal over time, both for labour costs and for price inflation. Also apparent using the change rather than the level of inflation. Movements in the unemployment (and output) gap have smaller effects on inflation than before. This can reflect many factors – globalisation, other structural labour market changes, better anchored inflation expectations and changes in monetary policy frameworks. The flattening of the Phillips curve began before globalisation accelerated in the mid-1990s: Better anchored inflation expectations may be more important. The role of globalisation is an empirical matter. Competition could even make prices more responsive to activity. 19 The impact of globalisation on price inflation is examined in Pain, Koske and Sollie (2006). The analysis has three steps: Calculation of the direct impact of rising lower-cost imports from emerging economies on inflation rates in selected OECD economies using a simple accounting framework. Analysis of the impact of global economic conditions on oil and non-oil commodity prices. Empirical analysis of the wider impact of globalisation on consumer prices in 21 OECD economies, over 1980-2005 Test whether inflation dynamics changed in the mid-1990s. Quantification of the impact of globalisation on prices and inflation through a scenario analysis that distinguishes the impact of non-commodity and commodity import prices. 20 [1] Main findings of the accounting analysis: The combined impact effect of lower-cost imports from China and other dynamic Asian economies has reduced domestic inflation by 0. percentage points per annum in the United States (from 1996 to 2005); by 0. 3 percentage points per annum in the euro area (from 2000 to 2005). Calculations from a number of studies (Federal Reserve, ECB) suggest that imports from lower cost producers have pushed down non-commodity import price inflation by between 1 and 2 percentage points per annum over the last decade. 21 [2] Gl obalisation and commodity prices: empirical results. Strong GDP growth in the non-OECD economies since 2000 has been an important factor behind the recent growth of real oil prices and real metals prices. A scenario analysis of setting the growth rate of non-OECD economies equal to the (lower) growth rate of the OECD economies from 2000 onwards reveals that oil prices would have been 20-40% lower than the baseline in the fourth quarter of 2005; real metals prices would have been 10% lower than the baseline. This removes some, but not all of the strong growth in oil and metals prices over recent years. 22 [3] The price equation estimated jointly (SUR) for 21 OECD countries using quarterly data for 1980-2005 is: ? ln P = ? + i,t 0i ? ? SH M SH ? ln P ? M ? [1 ? M ln P ] ln C ? ? 1i ? i,t ? 1 1i i, t ? 1 i, t ? 1 1i i,t ? 1 i,t ? 1 ? ? 4 4 4 M + ? ? ? ln P C + ? GAP + ? ? ji ? ln Pi,t ? j + ? ? ji ? ln Pi,t ? j +? ji i,t ? j 3i i,t ? 1 it j =1 j=0 j =0 P, PM and C denote consumer prices (CED), import prices of goods plus services and domestic unit labour costs MSH denotes the import share of domestic demand (rolling regressions without this term showed a rise in ? 1 over time) GAP is th e domestic output gap Cross-equation parameter restrictions imposed if data permits ? 1 found to be significantly larger from 1995Q1 onwards 23 3] The impact of globalisation on price inflation The long-run influence of import prices on domestic consumer prices has risen since the mid-1990s. This reflects two factors: a rise in import penetration in OECD economies; the impact of import competition on competitors’ prices. The impact of import prices on domestic consumer prices is larger in small open economies. The cyclical sensitivity of inflation to domestic economic conditions declined between 1981-1994 and 1995-2005. No robust significant additional impact from the global output gap. Global conditions are already reflected in import prices). The separate commodity and consumer price findings are combined in a set of scenario analyses. These show that ex-ante inflationary pressures in most OECD economies would have been moderately higher in the absence of globalisation 24 Impact on consumer price inflation from removing globalisation effects 2000-05. Average percentage point difference per annum Commodity . Non-commodity Component . component . Japan Canada OECD United States United Kingdom Germany France Euro Area Italy Net effect -0. 4 -0. 2 0. 0 0. 2 0. -0. 2 0. 0 0. 2 0. 4 Lower bound of commodity import price effect (20% oil, 10% metals) Upper bound of commodity import price effect (40% oil, 10% metals) Lower bound of non-commodity import price effect (1%) Upper bound of non-commodi ty import price effect (2%) Lower bound of net effect Upper bound of net effect Range of possible impact These estimates are for given labour costs. To the extent that globalisation also affected labour cost growth, the net implicit disinflationary impact of globalisation may be even higher. 25 Concluding comments and issues for discussion [1] Globalisation is clearly affecting labour market outcomes in the OECD, and also domestic price inflation. Can the various impacts can be expected to persist for some time? The existing impact appears modest – will it rise in the future? Estimating underlying inflationary pressures is more complicated: Globalisation affects commodity and non-commodity prices The flatter Phillips curve raises the difficulties of identifying where the economy is relative to potential. Does this have implications for the conduct of monetary policy? 26 Concluding comments and issues for discussion [2] Globalisation raises the need for labour market flexibility (job reallocation) but also raises fears about job insecurity and widening earnings inequality. What are the appropriate policies to deal with these concerns? Enhancing potential job creation and labour market adjustment: greater product market competition reduced employment protection legislation Education/training policies to equip workers with general skills Direct adjustment assistance to displaced workers: Transitional income support (and health coverage) Full occupational pension portability Active labour market programmes for updating skills and improving job search. 27

Argentina Essays (1061 words) - Demography, Population, Free Essays

Argentina Essays (1061 words) - Demography, Population, Free Essays Argentina For my case study on demographic transition Ive chosen the well-known country of Argentina, which is located in South America. I decided to conduct my study from 1936 to 1960. For this 25-year period I found all the statistical data which I need to actually complete population growth analysis. In the demographic transition model of Argentina we can see that the crude birth rate (CBR) is almost always double or higher then the crude death rate (CDR). This allows the natural rate of increase (NRI) to be higher than the CDR. NRI reflects how fast population is growing. In the demographic transition model of Argentinas CBR per 1000 (blue line) is the highest line relative to the origin. We can see that the line stays very steady from 1936 to 1943, at about 22 to 23 live birth per thousand. In 1944 we see a gradual increases of live birth per thousand. By 1946 the CBR is at one of it highest points. This line fluctuate from 24 to 25 per thousands range for approximately twelve years to 1956 until it gradual decrease to it original state, back to 22 per thousands. The ten to twelve years peak period of CBR helps to increases NRI for Argentina in the mid 40s and into the 50s. (We will see how this effects the NRI later) The CDR (pink line) is the lowest line in the model. In the beginning of the line (1936) we see the CDR start to rise and reach it highest point at 11 per thousand in 1938. From then on it stay steady at 10 per thousands for nine years. After 1948 we can see the line slowly decreasing to 8 per thousand by 1960. This slow drop in CDR also effected the NRI (which we will see later). Both CBR and CDR effect how well a country like Argentina population is growing both factors relate to the natural rate of increase. This is the middle line in the model (yellow line). The NRI is determined by subtracting the CBR by the CDR. In the model Argentinas CBR is fairly high and CDR is less than half of it. This allows the NRI line to stay between them. We can see from the model that the NRI starts to decrease from 1936 to 1938. This is happens because the CDR rises and the CBR remands steady. In 1938 the NRI reaches it lowest level at 11 per thousand. From that point on we see an increase of the NRI. NRI increase because of the growth in CBR and the slow decrease in CDR. The NRI reaches it highest point of 16 per thousand in 1950 and from than on decrease gradually. It gradually decreases because both CBR and CDR are also decreasing. By looking at NRI we see point of high population increase was from 1944 to 1956 this time period is better known as the baby boom. From the m odel we see that Argentinas NRI is in the middle range of population growth from 12 to 16 per thousand, which is 1.2 to 1.6 percent increase per year. Form the demographic transition model of Argentina I see no discernable pattern. But I do feel that by looking at the demographic transition model of Argentinas that it falls under the second stage of the model. This stage is where growth potential is realized and where CDR drops before CBR, which allow for rapid population growth. I also found it not to fit the pattern of the pioneer countries. The reason for this is that Argentina didnt keep fertility and the mortally level relatively low like the pioneers. We can see this by have the NRI over one percent. The demographic gap is the gap between the live birth rate and death rates in the demographic transition model. The larger the gap between lines (providing CBR is high the CDR) will determine the growth rate of a country. In my case study of Argentina as a developing country it imply that the future growth will remain relatively the same. The reason for this is that even though the CDR is dropping, death rates cant fall forever and it will eventually level off. Another

Market efficiency Essay Example | Topics and Well Written Essays - 1750 words

Market efficiency - Essay Example There are various forms or degrees of market efficiency which exists. These comprise of strong market efficiency, semi-strong market efficiency and the weak form market efficiency (Ho & Yi, 2004; p. 57). Acknowledging the efficient market hypothesis in its simplest and purest form might be hard; nevertheless there are three main types of efficient market hypothesis which have the purpose of reflecting the extent to which it can be used in the security markets. First is the strong-form efficiency which is the strongest form and it states that all information and facts in the market, whether in the public or private hands is incorporated in the stock prices. There is no insider information that might grant the investor an extra advantage (Cataldo, 2003, p. 27). Secondly, there is the semi-strong efficiency form of efficient market hypothesis. This asserts that all public information present in the market is used in the derivation of the stock’s present price. In this form of eff iciency fundamental and technical analysis cannot be applied to achieve better profits for the investor. Lastly, there is the weak form efficiency which alleges that all historical prices of a security are replicated in the current stock’s price. Thus, technical analysis cannot be of any use in predicting the future stock’s price and eventually beating the market (Basse & Bassen, 2010; p. 51). Part II Evaluation of the Market Efficiency The nature and type of information is not required to be constrained to financial news and studies only. As a matter of fact political news economic news and news regarding social events merged with the way the investors incorporate such information, whether it might be true or mere rumors, will be replicated in the securities prices. According to the theory of the efficient as prices react to similar information there is no investor who will be in a position to earn superior profits over the other. This kind of observation is seen in s trong form efficiency where all available public information is incorporated in the stock’s price (Zhang, 2008; p. 66). Using the random Walk theory asserts that in any efficient market, prices normally become unpredictable such that they are random. In this respect, there is no investment trend that can be detected in such a manner that any predetermined approach to investing in the stock might not be that profitable. This type of ‘Random Walk of stock’s prices described in the school of thought of the efficient market hypothesis might lead into a failure of any form of investment plan that has the main objective of beating the market regularly (Moyer, Mcguigan, & Kretlow, 2009; p. 48). As a matter of fact the theory proposes that any transaction cost incurred in the management of portfolio might be more successful for an investor to place his or her money into index funds (Bauwens & Giot, 2001; p. 49). Evidence against the Efficient Market Hypothesis (EMH) Ther e are some anomalies within the market that cannot allow an investor to use the historical prices, private information or public information to obtain abnormal profits. In an actual market of investment, arguments against the Efficiency market hypothesis. Some authors claim that there are investors who have beaten the market and obtained abnormal profits (Graham, Smart & Megginson, 2010; p. 359). A point of focus is especially on the argument that there are sometimes stocks in the market which have been