American Journal of Economics

Impact of Trade Policies on Manufacturing Sector Employment

Mac Nwende — Mon, 19 Feb 2024 00:00:00 +0300

Purpose: The aim of the study was to assess the impact of trade policies on manufacturing sector employment.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: Several studies have investigated the impact of trade policies on manufacturing sector employment, yielding mixed findings. While some research suggests that trade liberalization leads to job losses in manufacturing due to increased competition from imports and outsourcing, others argue that it can stimulate employment by expanding markets and promoting specialization. Additionally, the effects vary across industries and regions, with certain sectors experiencing more significant displacement of workers than others. Factors such as the level of technology adoption, workforce skill levels, and government policies also play crucial roles in shaping the outcome.

Implications to Theory, Practice and Policy: Heckscher-ohlin theory, stolper-samuelson theorem and ricardian model of comparative advantage may be use to anchor future studies on assessing the impact of trade policies on manufacturing sector employment. Foster collaboration between academia, industry, and government agencies to facilitate knowledge exchange and evidence-based decision-making. Advocate for the adoption of trade policies that prioritize job creation, wage growth, and labor standards while fostering competitiveness and innovation within the manufacturing sector.

Impact of Minimum Wage Increases on Employment Levels in the United States

Ishmael Bongitte — Mon, 19 Feb 2024 00:00:00 +0300

Purpose: The aim of the study was to assess the impact of minimum wage increases on employment levels in the United States.

Findings: Research on the impact of minimum wage increases on employment levels in the United States has yielded mixed findings. While some studies suggest that modest increases in the minimum wage have minimal to no adverse effect on employment, others indicate potential negative consequences, particularly for low-skilled workers and certain industries. Recent meta-analyses and empirical studies have shown that the employment effects of minimum wage hikes can vary depending on factors such as the magnitude of the increase, the local labor market conditions, and the specific industries affected. Moreover, research increasingly emphasizes the importance of considering not only employment levels but also other outcomes such as wage distribution, poverty rates, and overall economic well-being when evaluating the overall impact of minimum wage policies.

Implications to Theory, Practice and Policy: Neoclassical economics, labor market segmentation theory and new keynesian economics may be use to anchor future studies on assessing the impact of minimum wage increases on employment levels in the United States. Practically, policymakers should consider the empirical findings when designing and implementing minimum wage policies. From a policy perspective, the empirical studies highlight the importance of evidence-based policymaking in the minimum wage arena.

Determinants of Consumer Spending Behavior During Economic Recessions

Feng Tai — Mon, 19 Feb 2024 00:00:00 +0300

Purpose: The aim of the study was to assess the determinants of consumer spending behavior during economic recessions.

Findings: During economic recessions, consumer spending behavior is influenced by income levels, consumer confidence, savings and debt levels, perceptions of job security, unemployment rates, and government interventions like stimulus packages. Lower-income households tend to cut back more significantly, while uncertainty and job insecurity lead to cautious spending habits. Those with savings may maintain spending, while high debt levels can prompt restraint. Rising unemployment prompts prioritization of essential purchases. Government interventions can mitigate spending declines by bolstering income and confidence.

Implications to Theory, Practice and Policy: Keynesian theory, behavioral economics theory and permanent income hypothesis may be use to anchor future studies on assessing the determinants of consumer spending behavior during economic recessions. Businesses should adapt their strategies to align with consumer preferences and priorities during recessions. Policymakers play a critical role in mitigating the adverse effects of recessions on consumer spending behavior.

Relationship between Education Attainment and Income Mobility in Tanzania

Fatuma Budi — Mon, 19 Feb 2024 00:00:00 +0300

Purpose: The aim of the study was to assess the relationship between education attainment and income mobility in the United States.

Findings: Studies on the relationship between education attainment and income mobility in the United States consistently demonstrate a strong correlation between higher levels of education and increased income mobility. Research indicates that individuals with higher levels of education, such as a college degree or advanced degrees, have greater opportunities for upward income mobility compared to those with lower levels of education. Education serves as a crucial determinant in economic success, enabling individuals to access higher-paying jobs and career advancement opportunities. Moreover, education not only provides individuals with specific skills and knowledge but also enhances their ability to adapt to changing economic conditions and technological advancements, further contributing to income mobility.

Implications to Theory, Practice and Policy: Human capital theory, social capital theory and structural functionalism may be use to anchor future studies on assessing the relationship between education attainment and income mobility in the United States. Implement targeted interventions aimed at reducing barriers to educational access and attainment, particularly for marginalized and disadvantaged populations. Advocate for evidence-based policy reforms that prioritize educational equity and address systemic barriers to income mobility.

Fiscal Policy Effects on Income Inequality in the United States

Brown Smith — Mon, 19 Feb 2024 00:00:00 +0300

Purpose: The aim of the study was to assess the fiscal policy effects on income inequality in the United States.

Findings: Research on fiscal policy's impact on income inequality in the United States underscores several key points. Progressive taxation, coupled with social welfare programs, helps redistribute wealth from higher-income groups to lower-income ones, mitigating inequality. Investments in education and job training improve individuals' earning potential and upward mobility. Minimum wage increases benefit low-wage workers, narrowing income gaps. Government spending on public services promotes equal access to opportunities. However, tax policies favoring the wealthy may exacerbate inequality. Overall, well-designed fiscal policies are crucial for addressing income inequality, contingent on effective implementation and economic conditions.

Implications to Theory, Practice and Policy: Redistribution theory, public choice theory and neoclassical growth theory may be use to anchor future studies on assessing the fiscal policy effects on income inequality in the United States. Policymakers should prioritize the implementation of rigorous impact evaluations to assess the effectiveness of fiscal policies in reducing income inequality. Policymakers should prioritize progressive taxation reforms to ensure that the burden of taxation is distributed equitably across income groups.