The Developing Economies
Volume 43, Number 2 (June 2005)
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Does Social Security Affect Retirement and Labor Supply? Evidence from Chile (157KB) / Rodrigo A. Cerda
Banking Sector Controls and Financial Deepening: A Structural Error Correction Model for Tunisia (119KB) / Nejib Hachicha
Wen-Chun Chang, "Determinants of Donations: Empirical Evidence from Taiwan," pp. 217-34.
In this paper, data from the 1999 Survey of Social Development Trend (SSDT) in Taiwan were used to examine the effects of income, tax price, as well as demographic variables on donations to different types of nonprofit organizations. The findings of this paper suggest that the effect of income on the level of donations was positively significant only for charitable and religious donations, but not for other types of donations. In addition, lowering the tax price of a donation exerted a significant effect on the probability of making donations only for religious contributions, but it also raised the level of contributions both for charitable and religious donations. The effects of most demographic variables were significant for the participation decision for all the different types of donations, but not significant for the levels of donations to academic, medical, and political organizations.
Rodrigo A. Cerda, "Does Social Security Affect Retirement and Labor Supply? Evidence from Chile," pp. 235-64.
This paper explores the effects of the social security system on retirement and labor supply decisions. Due to the regulations established by Chilean social security law reform, two social security systems coexist in Chile: the "Pay-As-You-Go" and the individual account system. The coexistence of the systems allows us to better understand the effects of both social security systems on retirement and labor supply. We find that (1) larger benefits in any social security system induce earlier retirement and (2) larger variance of benefits in the individual account system induces later retirement. We do not find major impacts of social security on labor supply of individuals in the labor force.
Nejib Hachicha, "Banking Sector Controls and Financial Deepening: A Structural Error Correction Model for Tunisia," pp. 265-84.
The aim of this paper is to investigate empirically the effects of several types of banking sector controls on financial deepening in Tunisia. The hypotheses addressed in this study are iscussed within the general framework of the McKinnon/Shaw approach and the monopoly bank model. A structural error correction model in Ericsson's (1995) sense has been specified and used to estimate the effects of financial repression in Tunisia over the period 1961-2000. The main empirical finding suggests that, in the long and short terms, financial repression has had significant and negative effects on financial development, independently of its well-known influence via the level of the real interest rate. This finding shows a contrast with the prevalence of financial market imperfections, but it is consistent with traditional literature on financial liberalization. In addition, this paper shows that financial deepening and per capita income are jointly determined since they both appear not to be weakly exogenous with each other.
Zhong Zhao, "Migration, Labor Market Flexibility, and Wage Determination in China: A Review," pp. 285-312.
This paper reviews economic studies on rural-urban migration issues in China. The paper focuses on four issues: the household registration system in China, the profile of the migrants, explanations for rural-to-urban migration, and the interaction between migration and labor market evolution, with special reference to labor market segregation, labor market flexibility, and wage differentials. The paper concludes with suggestions for further research topics.