This dissertation contains three essays in microeconomics. Using descriptive analyses andcausal inference techniques, it examines the role that institutions play in determining children’s human capital investments, adults’ wages, and whether older workers are independent contractors. Chapter 1 explores how children’s human capital development is affected by the interactions between automatic grade promotion, tuition reduction, and rainfall. An important feature of rural life is that children participate in farming. One consequence of this fact is that when there is increased demand for agricultural labor children are more likely to be kept out of school, lowering their human capital. When policymakers implement reforms an important consideration should be whether children’s labor supply elasticity can be affected—will increased labor demand result in them being more likely to stay out of school. Estimating these interactive effects is generally difficult because of the need for several sources of exogenous variation. This paper interacts quasi-random rainfall shocks as a shifter to the demand for child labor and two education reforms in India—automatic promotion of children to grade 8, and a large reduction in fees at government-run schools—to examine whether the policy changes interact with the demand for child labor and whether the two policy reforms interact with one another. I find that tuition reduction increases children’s elasticity of labor supply. Higher rainfall reduces test scores, but when tuition is lowered, the effect of rainfall on test scores is more negative. There are also interactive effects between social promotion and tuition elimination. For children with the average level of treatment, tuition reduction increases test scores by 7% of a standard deviation. The effect of tuition reduction is lower for children who receive an additional year of automatic promotion, only 4.7% of a standard deviation. These results demonstrate that there are interactions between child labor and education policy, which can potentially undermine any beneficial impact of reforms. Future work should examine the mechanisms behind these findings, to better understand families’ decision-making in response to changing education policy. Chapter 2 studies how firms share rents with workers, and the role of labor market institutionsin determining which workers receive rents. Firms can decide whether to produce some goods and services in-house or purchase them from the market. Increasingly, they are purchasing from the market—using subcontractors, temp agencies, and other outsourced labor. Low-wage workers’ wages decline when they are outsourced, but little is known about how outsourcing affects remaining workers. If firms are rent sharing, outsourcing might increase remaining workers’ earnings because there are more rents or fewer workers to share them with. This paper measures the impact of occupational layoff (OL) outsourcing, where firms outsource some occupations, on the earnings and separations of workers who remain employed by those firms. Using employer-employee data based on German social security records in a dynamic difference-in-differences design, outsourcing increases remaining workers’ long-run earnings by 6% in a sample of 260 OL outsourcing events. Remainers are also more likely to stay at the outsourcing firm—outsourcing decreases the probability of remainers switching firms by 7.5 percentage points. Higher earnings and fewer separations are consistent with remainers receiving additional rents. Earnings gains are larger for workers in the bottom-half of the within-firm earnings distribution. Outsourcing only increases remainers’ earnings in firms with collective bargaining agreements (CBAs). In firms with CBAs, outsourcing increases remainers’ long-term earnings by 6%. In firms without CBAs, outsourcing lowers shortterm earnings by 3%. The results are consistent with a model of wage setting where outsourcing firms with CBAs need to compensate remainers. When there is no CBA, firms do not compensate remainers and can lower their wages. Analyzing the impact of outsourcing on within-firm and overall wage inequality, a typical outsourcing event in the sample lowers the within-firm Gini index by 2.5% as low-wage workers leave the firm and low-wage remainers are compensated. Using Recentered Influence Functions, increasing the share of workers part of an outsourcing event by 10 percentage points (from a baseline of 11.7%) increases the top of the earnings distribution by approximately 1-1.5%, and the overall Gini index by 1%. Remainers are relatively high-wage, and outsourcing increases their earnings. By not accounting for this effect, prior studies likely underestimate the total impact of outsourcing on earnings inequality in Germany. Chapter 3 studies the role that labor market demand shocks play in no just whether workersare employed, but the types of contracts they are employed in, especially as they age. Independent Contracting is an employment relationship where workers have fewer legal protections relative to traditional employment. At the same time, workers in these contracts are generally hired to provide defined tasks, and cannot be controlled by their employer to the same degree as regular employees. However, little is known about why firms decide to use contractors as opposed to regular employees. In a simple framework with uncertainty and fixed costs, contracting occurs when there is a mismatch between worker and firm type—either the worker or firm can do better in the next period, so they agree to a short-term contract. Under this framework, contracting can be driven by market factors. Negative labor demand shocks have an ambiguous predicted effect on the use of contractors as (1) employees become contractors and (2) contractors become unemployed. Which effect dominates is tested using data on two negative labor demand shocks—the China Shock and the Housing Wealth Shock from the Great Recession. In both instances, negative labor demand reduces the probability that workers are independent contractors, conditional on being employed in a given industry and occupation. From a baseline of 6.9% of 18-65 year olds employed as contractors, moving from the 25th to 75th percentile of the China Shock reduces contractor probability by 0.8 percentage points, while moving from the 25th to 75th percentile of the Housing Wealth Shock reduces the probability that a worker is an independent contractor by 3.75 percentage points. These demonstrate that economic downturns reduce the overall share of contractors, suggesting that contracting is mostly used on the margin as a supplement to regular employer-employee relationships, rather than as a replacement for those relationships.

A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Science in Engineering April 2017 / The construction industry in South Africa has an array of challenges. These challenges make it difficult for emerging contractors to establish and maintain successful companies. The purpose of this report is to establish why there are so few successful emerging contractors in the construction industry. In this study, the success of an emerging contracting company was judged by the survival of that company for a minimum period of five years and an improvement in the company’s CIDB grade by at least three levels during its existence. Structured interviews were conducted with a sample of 10 successful emerging contractors in Gauteng. The study found that technical capacity is one of the components of successful emerging contracting companies. It also found that technical capacity, inconsistent work opportunities and financial constraints are challenges that affect contractors when trying to increase their CIDB grade. The successful emerging contractors in the study utilised various strategies to overcome challenges in the industry, however, these strategies were flexible for changing circumstances and new opportunities. / MT 2017

A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in Building to the Faculty of Engineering and Built Environment, University of the Witwatersrand , Johannesburg, 2017 / This study proceeds from the premise that the dissatisfaction of the clients with the outcomes of the construction projects stems from their objectives not being met by the industry. The study aimed at investigating public sector clients’ performance in the South African construction procurement with a view to establishing how their efficiency and effectiveness could be improved during procurement processes. The specific research objectives are to: identify the key performance indicators (KPIs) for public sector clients in their procurement process; assess and analyse the weaknesses and strengths associated with public sector clients’ performance in the construction procurement process; develop a methodical approach to the measurement of public sector clients’ performance in their procurement processes; and recommend implementable approaches to improving client performance in the public sector procurement process. A qualitative and quantitative mixed method research design was adopted in carrying out the study. This involved the use of interviews and structured questionnaire survey. Data were collected from National and Provincial Departments of Public Works as public sector client representatives in South Africa. Based on the analysis of the organogram, a total of six functional units involved in the procurement process were identified and targeted for the purpose of data collection. The purposive sampling technique was adopted for the study. These are Heads of Departments, Deputy Directors General responsible for construction projects, Chief financial officers, Heads of supply chain management, Heads of human resources management, and senior project managers. Information collected included issues leading to uncovering of public sector key performance indicators (KPIs) and strengths and weaknesses associated with public sector clients’ performance. Data collected were analysed using content analysis to determine the themes and constructs leading to the identification of public key performance indicators. Further analysis was carried out using mean ranking analysis of factors associated with the strengths and weaknesses associated with public sector clients’ performance. The results of the research show project delivery process as good, not excellent; no detailed template for clarifying project briefs; legislative and administrative procedures lead to time and cost overruns; lack of adequate capabilities within in-house trained professionals and technical expertise to supervise all projects, insufficient in-house professionals to be represented on each project site; lack of mechanism to monitor in-house professionals’ participation on project sites; low participation of end users’ agents due to high incapacitation of User Department organisation; DPW are highly incapacitated because of lack of standard documentations; lack of professional training and short courses to enhance the skills and expertise of technical professionals. Other results show that delayed/late payment to contractors and end user agents due to cash flow challenges; weak or neglect of project monitoring and supervision; disputes between project managers and consultants as a result of quality of work done by contractors; bureaucratic bottlenecks and long decision making processes; design changes and variation due to contingent events, unforeseen circumstances due to weather, earthworks, disasters, changes in User Department briefs and challenges due to administration and political issues. The findings could also be drawn from challenges in descending order of importance from the human resources management units, the financial management units, the supply chain management units, project management units, decision making processes, planning units, design, briefing, documentation and policy issues. The study concluded that 137 public sector key performance indicators are identifiable for assessing public sector client performance in South African procurement. It also concluded that out of several challenges, the human resources, financial management, supply chain management, and project management challenges are the most severe challenges that beset the National and Provincial Department of Public Works, while the documentation and policy issues are less severe. Implementable recommendations were made to specific user departments. The human resources management units in the South African National and Provincial Departments of Public Works should adopt the recommendation suggested in this study to improve the effectiveness and efficiency of professionals during their project delivery process. / XL2018

Projects within the construction sector is characterized as fragmented, temporary and complex which inherently brings upon risk exposure. Decision makers within the industry need reliant access to information and knowledge in order to manage risks in a sufficient and systematic way. Thus, the implementation of an effective risk management in relation to managing associated project risk knowledge may facilitate successful construction project endeavors.  The purpose of this master thesis is to explore and evaluate project risk management within the Swedish construction industry, with the emphasis on the perspective of Swedish contractors. The aim is to examine the recognition and practical adoption of risk management in order to investigate how project knowledge is utilized in the process. The methodology consists of a literature review on risk management fundamentals, the diverse risk attitudes and knowledge management in relation to risk. Data collection and analysis are based on a mixed method approach in which conclusions are made in relation to theoretical groundwork. The empirical data is collected through the usage of an online survey and in-depth semi structured interviews with key professionals within the Swedish construction industry. The results from this research indicate that theoretical models and processes for risk management is fairly unknown within the industry, analogous methods are used within respective organizations but the sharing of definitions and concepts within the industry are absent and the methods are not as structured as described in risk management theory. However, findings suggest that the perception of actors within the industry regarding risk and the risk management process is one of high importance for obtaining project objectives. Furthermore, findings indicate that the interplay between knowledge- and risk management and the incorporation of these processes is underutilized among the contractors and developers. / Projekt inom byggsektorn karakteriseras ofta som fragmenterade, tillfälliga samt komplexa vilket i sin tur medför riskexponering. Beslutsfattare inom byggbranschen behöver tillförlitlig tillgång till information och kunskap för att kunna hantera risker på ett effektivt och systematisk sätt. Implementering av en produktiv riskhantering i samband med hanteringen av associerad projektriskkännedom och kunskap kan således underlätta framgångsrika byggprojektinsatser. Syftet med denna masteruppsats är att utforska och utvärdera projektriskhantering inom den svenska byggbranschen, med tonvikt på svenska byggentreprenörers perspektiv. Syftemålet är att undersöka erkännandet och det praktiska utförandet av riskhantering och på så vis undersöka hur projektkunskap utnyttjas i processen.   Metoden består av en litteraturöversikt gällande riskhantering, diverse riskattityder och uppfattningar samt kunskapshantering i förhållande till risk. Datainsamling och analys baseras på en ”mixed-method research” där slutsatser görs i förhållande till teoretiskt grundarbete. Den empiriska insamlingen gjordes genom tillämpning av en online-undersökning samt djupgående semi-strukturerade intervjuer med professionella inom den svenska byggbranschen.  Resultaten från denna forskning visar på att teoretiska modeller samt processer inom riskhantering är relativt okända inom branschen. I praktiken används likartade metoder inom respektive organisation men definitioner och begrepp skiljer sig sinsemellan, metoderna är dessutom inte lika strukturerade i jämförelse med riskhanteringsteorier inom litteraturen. Fynden i denna studie tyder dock på att uppfattningen kring risk och riskhanteringsprocessen, bland aktörer inom branschen, är att den är av stor betydelse för att uppnå projektmål. Vidare tyder resultaten på att samspelet mellan kunskap- och riskhantering samt dess inkorporering är underutnyttjat bland byggentreprenörer och byggherrar.

Materials are one of the areas that require special attention while creating a project's master plan as well as during the daily construction progress. The absence of materials when needed is one of the main causes of loss of productivity at a jobsite. Inefficient materials management can lead to an increase of 50% in work hours. As a result, a detailed plan for the materials management of each construction project is necessary. The critical role of materials management in the success of a construction project motivates the development of a new framework for the process of materials management for the construction industry, specifically the electrical construction industry. Materials management problems have a great impact on general contractors, but are more critical for specialty contractors such as electrical contractors. Based on the co-authors' experience, the construction industry has moved toward specialty contractors in the last decade to the point where at least 80% of the work performed on a typical construction contract is done by specialty contractors. General contractors have become, for the most part, project managers. Currently, materials management functions in the construction industry are often performed on a fragmented basis with minimal communication and no clearly established responsibilities among the parties involved. In addition, the collaboration required among departments has not been considered and implemented. This fragmentation creates gaps in information flow, which leads to delays in material ordering and receiving, expediting costs, excessive inventories of some items and project delays. However, model-based, computerized solutions to materials management problems are proliferating. Unfortunately, the typical electrical contractor may be overwhelmed by the technology required by these solutions and the challenges of implementing them into their business practices. A way out of this dilemma is presented by designing an industry-specific framework for the development of computerized decision support systems for the supply chains of the electrical contracting industry. Decision models are ever-present in the materials management processes of industries other than construction and have proven their worth in improving productivity and profitability. Knowledge-management concepts were applied to design an integrated, effective system of decision-support tools for materials-management decisions of an electrical contractor during the construction phase of a project. The framework developed is valuable in two fundamental ways. First, the framework identifies and describes all phases of materials management for an integrated, holistic view of all factors that affect the total cost of materials and material shortages. The research created detailed mappings of the essential decisions, decision models and data that are required to support supply-chain activities of construction contractors throughout a project life cycle. Second, the framework differentiates those steps in the materials management process that are straightforward applications of methods from those steps that are decisions. For these decisions, that are critical to the performance of the materials management process, we introduce the concept of a decision model and describe how such models can be incorporated into an advanced materials management system. This phase of the research developed a structured systems design of distributed, integrated decision support systems for materials management of the electrical contractor. The research derives the optimal integration of people, decision processes, decision support systems and data that are required to support efficient and effective systems for acquisition, procurement, transport, storage and allocation of material in the construction industry. / Ph. D.

This research examines the effects of evaluations, beliefs, subjective norms, and perceived behavioral control on the contractor's decision intention to recover used CCA lumber. The purpose of this research was to determine the factors that affect recovery. This research proposes that a contractor's decision intention to recover is affected by evaluations, beliefs, subjective norms, and perceived barriers to recovery. The study included a mail questionnaire that was sent to over 2,800 contractors. The questionnaire was used to collect both demographic data and an evaluation of the factors believed to affect the recovery of CCA treated lumber. Data was collected primarily through the mail survey, where participants rated the factors believed to affect the recovery of spent CCA lumber. Extrapolation indicates that nearly 2.4 million cubic meters of treated lumber were removed in 1999 from the demolition of decks. It was also discerned that only two of the respondents recovered used CCA lumber on a full-time basis. Additionally, there appears to be a lack of knowledge regarding the chemical components of CCA treated lumber, the proper disposal methods, and handling of the product. This has profound strategic implications for not only the wood treating industry but other industries as well. The second phase of the research utilized ordinary least squares regression and a structural equation modeling program to model the factors concerning the contractors' decision intention to recover. The findings indicate that contractor beliefs and components of perceived behavioral control are the primary drivers in the contractor's decision intention to recover. Regarding beliefs, the findings indicate that contractors have a minimal belief that the recovery of the CCA lumber is necessary. This indicates that a marketing communications program should be developed to address the necessity and benefits of recovery. Recovery facilities and programs were found to be nonexistent and will have to be developed in order to facilitate recovery. Concerning programs, the overwhelming response was that some type of financial incentive would have to be incorporated to initiate recovery. In conjunction with the development of programs, recovery facilities will have to be developed that are convenient for the contractor to dispose of the used lumber. / Ph. D.

International security, and particularly the threat of terrorist attacks, remains to be one of the most concerning and debated political topics a decade after the September 11th attacks. In particular, the newly elected Obama administration is at a point where they have a chance to reformulate their response to terrorist threats. Traditionally, the US government has resorted to a "hard" style approach of preventive measures and detention of terror suspects. Typically these measures are carried out by the US federal agencies themselves; however the use of civilians in the form of military contractors has become more popular in recent years. On the other hand, Saudi Arabia, an ally of the US has employed a radically different style in dealing with the threat of terrorism in their country. Their rehabilitation programs are part of an entire campaign that chooses a more human-based approach. This research analyzes the effectiveness of the Saudi Arabian program and the US non-governmental approaches to see if there are beneficial methods that can be adopted by the US in their traditional federal methods.

Submitted in fulfillment of the academic requirements for the degree of Master of Engineering, Department of Civil Engineering and Surveying, Durban University of Technology. Durban, South Africa, 2016. / Insolvency may be broadly defined as an inability of business entity to meet pending financial commitments. For a construction firm, such a situation creates conditions whereby a business entity is unable to fulfill its contractual obligations with regard to work in progress or creditors owing. There are indications to suggest that during periods of adverse conditions the occurrences of insolvencies are mutually exclusive and remain a subject of debate. The occurrence of these financial failures adversely affect business concerns operating within the civil engineering construction industry. In South Africa, figures released by the South African Federation of Civil Engineering Contractors (SAFCEC) in 1992 suggested an expected general decline in workload handled by this sector. This was a result of scaling down of heavy infrastructure projects because of government shifting focus to housing and other related projects mainly towards meeting the needs of the previously disadvantaged communities. During that period large contractors suffered financially and some went through insolvency. The government had also put emphasis on transformation of the sector to allow participation of emerging and small contractors, but this was not properly regulated, so most of these contractors did not have the experience and skills to operate sustainable construction firms. The Construction Industry Development Board (CIDB) was established in 2000 as a statutory body to provide leadership to stakeholders and to stimulate sustainable growth, reform and improvement of the construction public sector for effective delivery and the industry’s enhanced role in the country’s economy. The CIDB’s regulations were implemented after 2003 and are continuously improving the construction public sector’s growth. This research study investigated and evaluated the factors associated with insolvencies amongst civil engineering contractors in KwaZulu-Natal. The study investigated the hypotheses that “the prominent factors associated with civil engineering contractors insolvencies are related to managerial/operational issues”, the prominent factors associated with civil engineering contractors insolvencies are related to financial issues”, “South African government initiatives create an environment for small to medium contractors to develop through their implementation”, and good management and operation of small to medium construction companies reduce insolvency in construction”. Operational management and strategic factors were found to be amongst the leading causes of companies failures. The study also made some recommendations from the research findings. The findings are relevant to the South African government infrastructure service delivery programs and the general issue of affordable infrastructure services. / M

published_or_final_version / abstract / Real Estate and Construction / Doctoral / Doctor of Philosophy

Os sistemas mecanizados de colheita florestal estão se modernizando com a introdução constante de novas tecnologias, visando o aumento da produção e a diminuição dos custos. A maior parte das máquinas disponíveis no mercado nacional são originárias da América do Norte e Escandinávia e possui um alto custo de aquisição. No entanto os prestadores de serviços no Brasil, responsáveis por mais de 60% da mão de obra utilizada nas florestas plantadas, estão trabalhando com tecnologia defasada, na maioria das vezes com tratores agrícolas adaptados para o serviço florestal. O presente estudo analisou as condições de trabalho de empresas prestadoras de serviços do setor de colheita florestal, abordando os aspectos econômicos, a qualidade de vida dos trabalhadores, as questões trabalhistas, as condições dos equipamentos, custos operacionais e, por fim, oportunidades crédito para investir em tecnologia. Foram analisadas trinta empresas do segmento de prestações de serviços florestais, sendo cinco de forma detalhada. Das trinta empresas analisadas, três atuavam no setor de colheita, implantação, manejo e transporte, sete no setor de colheita e transporte, três no setor de colheita, implantação e manejo, sete apenas em colheita, seis em transporte, duas em implantação e mane jo e duas em serviços de apoio. Dentre as empresas analisadas o serviço predominante era o corte com motosserra, seguido pelo transporte rodoviário, carregamento e baldeio. O faturamento anual das empresas pesquisadas variou entre R$ 100.000,00 e R$ 50.000.000,00, com 36,6% apresentando um faturamento médio entre R$ 2.500.000,00 e R$ 5.000.000,00. Já entre as cinco empresas analisadas detalhadamente, o faturamento anual variou entre R$ 1.020.000,00 e R$ 4.313.000,00, com uma média de R$ 2.373.000,00. O número de funcionários ficou entre 33 e 181 e de acordo com o SEBRAE as empresas foram classificadas como: uma pequena, duas médias e duas grandes. Os resultados indicaram que as empresas prestadoras de serviço não acompanham a evolução tecnológica, principalmente no setor de colheita, devido ao grande investimento inicial necessário e às condições desfavoráveis aos financiamentos, juros superiores a 12% ao ano e ausência de garantias contratuais com duração compatível com o período do financiamento. Durante a execução deste trabalho observou-se que os empresários do setor não incluem nas planilhas de custos a remuneração do capital e uma correta depreciação dos bens, prejudicando a renovação dos equipamentos, levando ao envelhecimento das máquinas utilizadas na produção. Através dos resultados conclui- se que os custos estão acima dos valores pagos pelos serviços quando computadas a depreciação e a remuneração do capital, com três empresas apresentando resultados negativos nas análises financeiras. As empresas terceirizadas não estão conseguindo acompanhar a evolução tecnológica e suas máquinas possuem idade média superior a 10 anos. Observou que a mecanização aumentou a qualidade de vida dos funcionários, porém a renda per capita anual dos trabalhadores é em torno de R$ 5.280,00, cerca de 39% menor que a renda média da população brasileira. / Due to wood increasing demand and a necessity of cost reduction, the forestry operations are being more mechanized. Most of the available machines are industrialized in North America and Scandinavia with a hight cost of investment. However, the forest contractors in Brazil are working with an old technology, mainly adapted agricultural tractors and precarious conditions of work. The objective of this study was to describe the financial conditions of forestry contractors, approaching the life quality aspects, working questions, the equipment techniques conditions, operational costs and, finally, economic credit to invest in technology. Thirty companies in the forest segment had been analyzed, being five in detailed form. Three companies have been working with harvesting, planting, forest management and wood transportation; three with harvesting, planting and forest management; seven with harvesting and wood transportation; seven with harvesting only; six with wood transportation; two with planting and forest management; and two more with support services, with an annual income between US$ 40,000.00 and US$ 20,000,000.00 with 36,6% of you present them presenting an average invoicing between US$ 1,000,000.00 and 2,000,000.00. The annual income enters the five analyzed companies varied between US$ 400,000.00 and US$ 1,720,000.00 with a average of US$ 950,000.00. The employees number varied between 33 and 181 and the companies were classified as: one small, two averages and two big. The main difficulties to investment in a new generation machines are high financial tax, more than 12% a year, and a lack of long term contracts to guaranty there payment capability. During the execution of this work it was observed that the contractors do not include in the table of costs the capital remuneration and a correct depreciation. Currently, the machines average ages are superior to 10 years. The final results concluded that the costs are above of the paid values for the services when computed the depreciation and the capital remuneration, with negative results in financial analyzes in three companies. The forestry contractors are not following the technological evolution. Finally, it was observed that mechanization increased the quality of life, however, annual per capita income is around US$ 2,112.00, approximately 39% smaller than the average Brazilian population.