Master of Agribusiness / Department of Agricultural Economics / John A. Fox / Child mortality is defined as the death of children under five years old. Worldwide, child mortality was about 8.1 million in 2009, of which over fifty percent is related to diarrhea, pneumonia and malaria. Food and water borne pathogens are an important cause of deaths related to diarrhea and pneumonia. Illiterate or semi-literate populations are often slow to adopt food and water safety standards. Practices such as washing of food in sewage water, which would repulse most westerners might be considered normal in some parts of the world. Understanding some of the basic science underlying food safety standards is important for the farm worker in California, the villager in Africa and the child in Afghanistan. Ultimately, food safety practices in production can affect the consumer of agricultural products no matter where they are in the world, and inadequate food safety standards can affect the producer as a result of diminished consumer confidence in their product, or lack of access to export markets. In the instance of food contamination, young children and the elderly are typically most at risk. Perhaps the most sobering consequence of inadequate food safety standards is child mortality. This thesis uses a regression model to investigate determinants of the level of child mortality. We find that income distribution and levels of tertiary education, particularly for females, are significantly correlated with child mortality rates. Estimates suggest that a one percent increase in tertiary education in the female workforce is associated with a reduction of almost seven percent in the child mortality rate in countries where the rate of female tertiary education is below fifteen percent.

Master of Agribusiness / Department of Agricultural Economics / David G. Barton / The goal of this thesis was to help Farmers Cooperative Equity Company (FCE) remain a firm, stable cooperative while increasing wealth of their patron owners. This thesis evaluated alternative equity redemption strategies to help FCE decide what decisions need to be made for proper use of equity for financing assets and increasing patronage returns. To develop an understanding of FCE and their current financial structures, we looked at the history of FCE and cooperatives in general. Then we gave a brief background of financial performance measures that were used to evaluate the profitability, solvency, liquidity, and efficiency of FCE. A cooperative performance profile was then run on FCE, by using a financial analysis program called PERFORM, to compare it to other agriculture cooperatives. The results for FCE were very strong in that they were performing at or above the 50th percentile range for many of the measures examined. FCE appears to be a very profitable, liquid, solvent, and efficient cooperative. We then used the results provided by the financial analysis program called PERFORM to make financial projections for the future to evaluate alternative equity redemption strategies for FCE. A computer program called FINPLAN was used to make the financial projections and evaluate the alternative equity redemption strategies. Five different strategies were evaluated and compared to the status quo, “strategy S0,” business as usual. The results showed that if the projections made for the future are correct, FCE would be able to return larger redemptions to patron owners by implementing an alternative equity redemption strategy that adheres to strict balance sheet management. Balance sheet management requires a cooperative to meet predetermined solvency and liquidity goals and then distributes the residual equity over and above that needed to finance assets, in combination with debt, as the equity redemption budget for that year. FCE could return larger redemptions while financing their operations through the use of patron equity and then return excess equity to patrons based upon cooperative usage. FCE’s general manager and board of directors have been provided with this thesis and the full project report. This thesis and project provide FCE with valuable information for them to make critical decisions on cooperative finance, including income distribution and equity management decisions.

This paper explores the concept of well-being both in theoretical and practical applications. When it comes to well-being policy, it is apparent that the government’s goal ought to be to maximize the well-being of the citizens within that particular society. In order to do so effectively, there must be a foundational understanding both of the concept of well-being itself, as well as how it functions in application. I argue that preference-based approaches to well-being, which often emply GDP as a key metric, fail to adequately reflect the well-being of a nation’s citizens. I suggest that the Capabilities Approach offers a superior approach to well-being both in theory and in practice. Though it is possible that there are other equal or better options, I find that the Capabilities Approach successfully reaches the genuine depths of a person’s well-being without allowing for one individual’s well-being to impede on another’s. While it is evident that the capabilities approach still faces a number of hurdles and room for development, I hope to have argued that it is a step forward from traditional as well as subjective approaches to well-being. With further research and development, it is evident that this shift will allow for development decisions that are unbiased, equally considering the interests of all citizens, and thus a step forward towards truly increasing the well-being of humans throughout the world.

Thesis (MBA)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: The primary objective of this study was to verify the extent to which income distribution among the population groups in South Africa has changed since the 199! population census. These were the findings: It was established in this study that, at October 1996 the income share of Whites had dropped from 71.2 percent (1970) to 51.9 percent. The White population constitute 12.6 percent of South Africa population in 1996 but they received more than 50 percent of personal income in the country. At October 1996 the per capita income of Whites was 8.8 times that of Africans, 4.5 times that of Coloureds and 2.3 times that of Indians. The study found that income disparities between the population groups have narrowed, but there are a lot left to be done to remove income inequalities in the country. The study found that the income which accrued to each population group was not uniformly distributed within the group. In all population groups, the poorest 40%, and the next 41-70% household income classes suffered losses in household income shares between 1991 and 1996. In all population groups it was the richest 10% households who received the lion's share of income which accrued to the group, between 1991 and 1996. The study further found a shift in African employees from elementary occupations to artisan and machine operators. Between 1995 and 1999 the proportion of Coloureds in elementary jobs declined in favour of artisans, machine operators, managers and professionals. Indians and Whites had the smallest proportion of their workforce engaged in elementary occupations Only 5.4 percent of Africans aged 20 and above were found to possess degrees, diplomas and certificates in 1999, compared to 6.5 percent Coloureds, 14.3 percent Indians, 31.5 percent Whites. As high as 15.5 percent of Africans had not received any formal education at October 1999 compared to 7.9 percent Coloureds, 3.5 percent Indians and 0.3 percent Whites. Unemployment in all population groups has increased since the 1996 South African population census. / AFRIKAANSE OPSOMMING: Die primêre doelwit van hierdie studie was om die verandering in die omvang van die inkomsteverdeling tussen die bevolkingsgroepe sedert die 1991 bevolkingsopname te bevestig. Daar is bevind dat die inkomste aandeel van Blankes vanaf 71.2 persent in 1970 na 51.9 persent in 1996 afgeneem het. Die Blanke bevolking het 12.6 persent van die Suid-Afrikaanse bevolking in 1996 uitgemaak, maar hulle ontvang meer as 50 persent van persoonlike inkomste in die land. In Oktober 1996 was die per capita inkomste van Blankes 8.8 keer meer as dié van Swart Suid-Afrikaners en 6.8 keer meer as dié van Kleurlinge. Die studie het gevind dat inkomsteverskille tussen die bevolkingsgroepe verminder het, maar dat daar nog groot inkomste ongelykhede is. Die studie het verder bevind dat die verdeling van inkomste binne elke bevolkingsgroep ongelyk verdeel is. Tussen 1991 en 1996 het in alle bevolkingsgroepe, die armste 40%, en die volgende 41-70% huishoudelike inkomsteklasse 'n daling in hul aandeel van huishoudelike inkomste ondervind. In alle bevolkingsgroepe was dit die rykste 10% huishoudings wat die grootste aandeel aan inkomste ontvang het tussen 1991 en 1996. Die studie het ook gevind dat daar 'n verskuiwing van swart Suid-Afrikaanse werknemers van elementêre beroepe na ambagsmanne en masjienoperateurs plaasgevind het. Tussen 1995 en 1999 het die verhouding van anderskleuriges in elementêre beroepe afgeneem ten gunste van ambagsmanne, masjienoperateurs, bestuurders en professionele beroepe. Asiate en Blankes het die kleinste verhouding van hulle werksmag in elementêre beroepe gehad. In 1999 was slegs 5.4 persent van swart Suid-Afrikaners, ouderdom 20 en ouer, in besit van grade, diplomas en sertifikate, in vergelyking met 6.5 persent Kleurlinge, 14.3 persent Asiate en 31.5 persent Blankes. Tot en met Oktober 1999 het 15.5 persent van swart Suid-Afrikaners geen formele opleiding ontvang in vergelyking met 7.9% Kleurlinge, 3.5% Asiate en 0.3% Blankes. Werkloosheid het sedert 1996 in alle bevolkingsgroepe toegeneem sedert die 1996 Suid-Afrikaanse bevolkingsopname.

This paper suggests an empirical framework for analysing income distribution dynamics and cross-region convergence in the European Union of 27 member states, 1995- 2003. The framework lies in the research tradition that allows the state income space to be continuous, puts emphasis on both shape and intra-distribution dynamics and uses stochastic kernels for studying transition dynamics and implied long-run behaviour. In this paper stochastic kernels are described by conditional density functions, estimated by a product kernel estimator of conditional density and represented by means of novel visualisation tools. The technique of spatial filtering is used to account for spatial effects, in order to avoid misguided inferences and interpretations caused by the presence of spatial autocorrelation in the income distributions. The results reveal a slow catching-up of the poorest regions and a process of polarisation, with a small group of very rich regions shifting away from the rest of the cross-section. This is well evidenced by both, the unfiltered and the filtered ergodic density view. Differences exist in detail, and these emphasise the importance to properly deal with the spatial autocorrelation problem. (authors' abstract)

Thesis (PhD)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: This thesis deals with poverty and inequality in Mozambique and with the link of education to wellbeing through the labour market. Earlier studies that analysed well-being in Mozambique drew counter-intuitive conclusions about the spatial distribution of poverty and inequality. They focused excessively on money-metric indicators of well-being and adjusted the poverty line so as to make it reflect taste and price differentials across regions. This thesis suggests the use of a wealth index based on asset holdings and derived by employing Multiple Correspondence Analysis to support the money-metric results. If results are not also confirmed by other indicators of well-being, one should be sceptical of simply unquestioningly applying best practice approaches. In this thesis the moneymetric results drawn by earlier studies are not confirmed by this other indicator of well-being. Since education is a policy lever that can be used to influence the existing patterns of poverty and inequality, one needs to understand how it operates through the labour market in improving wellbeing. Developing and poor economies such as Mozambique are characterised by a very segmented labour market and by a small wage sector. A large proportion of the working-age population is engaged in subsistence agriculture and self-employment activities. Using a multinomial logit model this thesis demonstrates that schooling has an influence on the choice of employment segment. For instance, schooling increases an individual’s chances of getting a public sector job, but lowers his or her chances of falling into self-employment activities. This study also links schooling to earnings. It argues that when analysing the relationship between schooling and earnings in a poor developing economy one should account for the multiple segmentation of the labour market as well as for sample selection bias. To estimate the effects of schooling on earnings this thesis thus employs a modified version of Dubin and McFadden’s model. It finds a positive association between education and earnings in the public wage sector, the private wage sector and in the selfemployment segment. Convex returns to education are also found, and accounting for selectivity bias does improve the earnings functions relative to those based on ordinary least squares regressions. Education quality has a bearing on an individual’s performance in the labour market and therefore affects the role of education in alleviating poverty. Thus, this thesis identifies the correlates of education quality in Mozambique. Employing education production functions based on ordinary least squares multivariate regressions it finds that most of the correlates of educational achievement suggested by the literature are indeed associated with educational outputs. Employing Oaxaca-Blinder decomposition techniques often used in labour studies to study earnings discrimination, the thesis attempts to explain the reasons behind the average deterioration in education quality in Mozambique. The initial hypothesis on this matter was that the average deterioration in education quality over time was associated with the increase in the proportion of pupils from low socioeconomic backgrounds. This hypothesis, however, is not confirmed. Likely explanations include the decline in the efficiency of the education system and more lenient pupil promotion policies. / AFRIKAANSE OPSOMMING: Hierdie proefskrif handel oor armoede en ongelykheid in Mosambiek en die effek van onderwys op welsyn deur die arbeidsmark. Vroeëre studies het gevolgtrekkings oor welsyn in Mosambiek getrek wat nie met intuïsie oor die ruimtelike verdeling van armoede en ongelykheid strook nie. Sulke studies het slegs geldelike maatstawwe van welsyn gebruik en die armoedelyn aangepas om pryse en smaak in verskillende streke te reflekteer. Hierdie tesis stel die gebruik van nie-geldelike maatstawwe voor om geldelike maatstawwe aan te vul, en spesifiek ’n bate-indeks van welsyn wat verkry word deur die gebruik van Veelvuldige-Korrespondensie-Analise. Daar is rede tot skeptisisme wanneer die sogenaamde ‘beste’ metode vir die berekening van geldelike maatstawwe sonder bevraagtekening gebruik word en die resultate nie deur ander indikatore van welsyn bevestig word nie. Aangesien onderwys ’n beleidsinstrument bied om bestaande patrone van armoede en ongelykheid te beïnvloed, is dit nodig om te verstaan hoe dit deur die arbeidsmark werk om welsyn te verbeter. Ontwikkelende en arm ekonomieë soos Mosambiek word gekenmerk deur ’n baie gesegmenteerde arbeidsmark en ’n klein loonsektor. Groot persentasie van die bevolking van werkende ouderdom is by onderhoudslandbou en ander self-indiensneming betrokke. Veelvoudige-logit-model toon hoe opvoeding die keuse van indiensnemingsektor beïnvloed. Onderwys verhoog byvoorbeeld iemand se kanse om pos in die openbare sektor te kry, maar verlaag die waarskynlikheid van selfindiensneming. Die studie koppel verdienste ook aan onderwys. Daar word aangevoer dat die groot arbeidsmarksegmentasie en seleksie-sydigheid in berekening gebring moet word wanneer die verband tussen onderwys en lone in arm ontwikkelende land bestudeer word. Dus word aangepaste vorm van Dubin en McFadden se model in hierdie proefskrif gebruik om die effek van onderwys op verdienste te bereken. Positiewe verband bestaan tussen onderwys en lone in die openbare loonsektor, die private loonsektor en self-indiensname. Die opbrengsstruktuur op onderwys is konveks, en inagneming van seleksie-sydigheid verbeter die verdienstefunksies relatief tot gevalle wat net op gewone kleinste-kwadrate-regressies gebaseer is. Onderwysgehalte het invloed op persoon se vertoning in die arbeidsmark en raak daarom die rol van onderwys in armoedeverligting. Faktore wat met onderwysgehalte in Mosambiek verband hou word dus geïdentifiseer. Die gebruik van gewone-kleinste-kwadrate-veelvoudige-regressies in onderwysproduksiefunksies toon dat die meeste van die bepalende faktore wat in die literatuur genoem word inderdaad met onderwysuitsette verband hou. Deur gebruik van Oaxaca-Blinder dekomposisie-tegnieke – wat meer dikwels gebruik word om arbeidsmarkdiskriminasie te ontleed – word gepoog om die redes vir die agteruitgang van gemiddelde onderwysgehalte in Mosambiek te verklaar. Die aanvanklike hipotese hieroor was dat die agteruitgang in die gemiddelde vertoning deur die toename van leerlinge van laer sosio-ekonomiese agtergrond verklaar sou kon word. Ontleding van die data bevestig egter nie hierdie hipotese nie. Moontlike verklarings sluit in agteruitgang in die doeltreffendheid van die onderwysstelsel en minder streng beleid rakende promosie van leerlinge na hoër grade.

No description available.

This thesis contributes to two completely unrelated debates in the economic literature, similar only in the relatively high degree of controversy characterizing each one. The first part is methodological and macroeconomic in nature, addressing the question of whether the distribution of income across countries is converging (i.e. are the poor catching up to the rich?) or diverging (i.e. are we witnessing the formation of two exclusive clubs, one for poor countries and another one for rich countries?). Applications of the simple Markov model to this question have generated evidence in favor of the divergence hypothesis. In the first chapter, I critically review these results. I use statistical inference to show that the divergence results are not statistically robust, and I explain that this instability of the results comes from the application of a model for discrete data to data that is actually continuous. In the second chapter, I reposition the whole convergence-divergence debate by placing it in the context of Silverman’s classic survey of non-parametric density estimation techniques. This allows me to use the basic notions of fuzzy logic to adapt the simple Markov chain model to continuous data. When I apply the newly adapted Markov chain model to the cross-country distribution question, I find evidence against the divergence hypothesis, and this evidence is statistically robust. The second part of the thesis is empirical and microeconomic in nature. I question whether observed differences between husbands’ and wives’ participation in labor markets are due to different preferences or to different constraints. My identification strategy is based on the idea that the more power an individual has relative to his/her partner, the more his/her actions will reflect his/her preferences. I use 2001 PSID data on cohabiting couples to estimate a simultaneous equations model of the spousal time allocation decision. My results confirm the stylized fact that specialization and trade does not explain time allocation for couples in which the wife is the primary breadwinner, and suggest that power could provide a more general explanation of the observations. My results show that wives with relatively more power choose to work more on the labor market and less at home, whereas husbands with more power choose to do the opposite. Since women start out from a lower level of labor market participation than men do, it would seem that spouses’ agree that the ideal mix of market work and housework lies somewhere between the husbands’ and the wives’ current positions.

The paper uses data from the European Union Statistics on Income and Living Conditions (EU-SILC) 2005 to analyze intergenerational income mobility in Austria compared to other European Union members. Applying various methodological approaches like least squares estimations and quantile regressions we reveal substantial differences in intergenerational mobility between Scandinavian countries and Continental Europe. The results show that income class rigidities in most European countries are striking compared to the Nordic countries. / Series: Department of Economics Working Paper Series

Esta dissertação busca contribuir para a literatura sobre as elaticidades renda da demanda por importações. Mais especificamente, procura analisar em que medida a questão da distribuição pessoal da renda se relaciona com estas elasticidades para o Brasil. O país apresentou nos anos 2000 um processo singular de desenvolvimento, marcado por crescimento econômico com distribuição de renda. Analisa-se este processo através das perspectivas da teoria do crescimento sob restrição externa e da teoria da CEPAL, que consideram a elasticidade renda das importações um dos determinantes fundamentais ao processo de desenvolvimento. A indústria brasileira cresceu, como resposta tanto à expansão do consumo interno e quanto à dinâmica favorável internacional para os produtos da indústria extrativa. Já a indústria de transformação se voltou para dentro, uma vez que apresentou crescimento mas reduziu suas exportações. Entretanto, a penetração das importações desta indústria também aumentou. Tendo este cenário como motivação, realiza-se um exercício empírico de estimativa das elasticidades renda da demanda por importações a partir de dados de consumo das Pesquisas de Orçamentos Familiares dos biênios 2002-2003 e 2008-2009, com o objetivo de comparar a evolução das elasticidades para diferentes classes de renda. Os resultados sugerem que, apesar da melhora na distribuição de renda e da subsequente expansão do consumo, a indústria nacional não atendeu à demanda. A elasticidade renda da demanda por importações aumentou, e o aumento foi maior para as classes mais pobres. / This dissertation aims to contribute to the literature on the import elasticities. More specifically, it seeks to analyze how personal income distribution relates to import elasticities for Brazil. The country presented in 2000 a unique development process, marked by economic growth and income distribution. This work analyzes that process through the perspectives of the theory of growth under external constraint and the ECLAC theory, considering the income elasticity of imports one of the key determinants in the development process. The Brazilian industry grew in response to both the expansion of domestic consumption and the international favorable dynamics for primary products. The manufacturing industry turned inward as it grew but reduced its exports. However, the import penetration in the industry also increased. Taking this scenario as motivation, this work carried out an empirical exercise of estimating income elasticities of demand for imports from consumption data from Pesquisas de Orçamentos Familiares of 2002-2003 and 2008-2009, in order to compare the evolution of import elasticities for different income classes. The results suggest that, despite the improvement in income distribution and the subsequent expansion of consumption, the domestic industry was unable to meet demand. The income elasticity of demand for imports increased, and the increase was greater for the poorer classes.