A pre-analysis of Jubilee’s One Solar Laptop per Child Initiative(OSLPCI)

Samsung Solar Laptop

Samsung Solar Laptop

During the recently concluded electoral campaigns President Uhuru Kenyatta and his Deputy William Ruto captivated the minds of Kenyan parents with a promise of delivering to every Standard One pupil entering school in 2014 a solar powered laptop to enhance and aid their learning environment(see video below).

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As expected many Kenyans were sceptical given the perception that many Government projects begin with pomp and fury but end up as duds; wasting billions of shillings that could otherwise have gone to more basic and immediate needs.

I thought it would be prudent for us to examine through a Strength Weakness Opportunity Threat( SWOT) analysis the feasibility of such a project in present day Kenya.

Strengths

  • Kenya has a reasonably developed ICT Sector with 3G and Fibre internet connectivity across most of the country that can support remote management of the project.
  • Kenya has a good number of Hardware Companies that have a track record in assembly and distribution of hardware that can be relied on to install and deliver the necessary equipment if need be.
  • Kenya is home to major technology players such as Samsung, Huawei, ZTE, Microsoft, IBM and HP who can be entrusted to deliver both the hardware and software platforms needed to create the eco-system needed for such a project.
  • Kenya has a sufficient number of trained personnel at every level of the project delivery chain to sustain the project albeit if well organized.
  • Kenya has the capacity to train personnel should there be a shortfall within the aforementioned value chain.
  • Kenya has many Non Governmental Organizations(NGOs) that have built vast experience in delivering similar projects across other sectors. This experience can therefore be tapped into to help create a robust plan to mitigate against the following weaknesses.

Weaknesses

  • Many Kenyan educational institutions are stuck in what we could call an “Analog” mindset due to many years on poor funding and lack of training in modern educational techniques. Mindsets would need to change through an evolutionary process that all stake holders buy into.
  • Kenyan Governmental institutions have only recently begun improving their professional standards and therefore they would need to continue to up their efficiency levels to sustain such an ambitious project.
  • A lot of the backbone infrastructure needed to support this project is either lacking or outdated in many parts of Kenya. This includes electricity, data connectivity, storage facilities as well as the school infrastructure itself.

Threats

  • This project could have a single point of failure that could easily be overlooked which is the Social/Cultural adoption of this new technology by all the stake holders in society. This is because this project attempts to bridge the old and the new, the Analog and the Digital,  the Traditional and the Modern. How will the Jubilee Government address this cultural issues facing this project? Will parents trust their children to their devices? Will communities appreciate the content their children are being exposed to such an early age? Will experienced Government technocrats in the educational sector work with youthful “geeks” at the same level to deliver this project successfully? Will chalk board teachers adapt to new methods of teaching?
  • How will the project be financed and sustained while mitigating threats such as corruption and wastage of funds?
  • I trust there are experts within the Jubilee team who will address these issues given the efficiency with which they ran their election campaign. In my humble opinion the Opportunity this Initiative presents in terms of addressing a myriad of societal problems is to huge to be ignored or poorly executed.
Opportunities
  • The biggest opportunity of this project lies in the early exposure of young minds to technology and information that could allow for development of individual talents and skills from an early age. If you think about some of the Worlds best technological and scientific brains like Steve Jobs(Apple Inc) and Mark Zuckerburg(Facebook Inc) many had exposure to technology from a very young age (Watch Video Below). It is likely that a sustained OSLPC initiative will in the long run create our own local technological giants and safeguard Kenya’s position as a Technological Hub i.e Silicon Savannah.

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  • While the Technology Sector is likely to be the biggest long term beneficiary. The OSLPC Initiative is likely to have a positive socio-economic impact in the following sectors Education, Health, Energy and Agriculture given the kind of content that is likely to be adopted and curated for these school going children. I would actually advocate for localization of content to County Level to meet the societal needs and aspirations of Kenyans wherever they are.
  • It will also be important to expose the children especially as they grow older and head into their Secondary School years to more Open Internet Based Platforms like the Khan Academy which provide engaging content that can equip young people with access to information more relevant to their passion and needs. In my view Interests Based Education could be much more effective than Formal and Standardized education. They beauty about this approach is that it is something that can be implemented fairly quickly for older students through other initiatives like One Computer Lab per School.
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Indeed the opportunities the One Solar Laptop per Child Initiative offers are endless. The question remains what innovative ways can we come up with to ensure this project kicks off in the new year in a sustainable way.

I look forward to your suggestions, comments, criticisms and Ideas below; as I believe your contribution to be so important to the fruition and success of this initiative so much so that the future of our Kids literally, figuratively and DIGITALLY depends on it!

Legoo…

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Branding Kenya

Kikuyu Homestead

Kikuyu Homestead 19th Century

Well what is perceived by the word brand? Probably you are wondering where I am going with this. Well some months or years ago we had Tusker Supermarket a local self help store. The perception and reception by the public it was viewed as one of the underground local stores and unconfirmed sources said it was going down at some point. With a string of stores around capital city and towns, the resulted to rebranding and sure enough it catapulted its revenue and image of the store rose high to the standard of the main stores like Nakumatt and the then Uchumi. The store just renamed its name to Tuskys and put some more definitive colours for outright identification.

Back to our case Brand Kenya, well would argue Kenya has always been a brand on its own rather we needed rebranding. The whole strategy is amazing and yes under normal circumstances it would pass to be the best ideal way of selling Kenya to the Diaspora and attract tourist and investors. It’s viewed as an extension of progressing the main agenda of Vision 2030. Quoting the Information PS Mr. Ndemo he claimed politicians give guidelines they follow and if something fails its due to lack implementation by the likes of them the PS and so on. Is this really true to have such a claim when we do know that they are employed by the same politicians? May be sounding dumb but who is the boss and what if the boss grounds your plan? He was addressing attendees during the Brand Kenya launch claiming we should not blame politicians and that it was them to implement. Really tend to think he was wrong because for a fact it’s the politicians who have assumed the role of what goes and what does not. Look at the situation of the constitution review we haven’t begun and the already at it. Soon am guessing us going to be back to Orange and Bananas politics.

Anyway I think if the issue of Brand Kenya would lack the political goodwill we would be like playing musical beats without lyrics or having tuneless music but is still music. Look at it this way; yes we have Brand Kenya initiative but what about the underlining Kenyan issues that keep propping up? What are the strategies put forward to addressing them? Through this initiative we have TV programs and Lobbyist send out to sell Kenya in the positive light and uplift its image plus to ensure deviate from the bad publicity Kenya had received since last year. Looking at the programs well would look at them and agree that yes it would pull up some public information inspire others and so on but are the political class in together with us or are they to stick back and be the spoiled potatoes to spoil the rest. Think about it, w busy painting this beautiful picture of oneness, safety and beauty of the country few days later some politicians comes out accusing the other of political assassination. With these grounds lobbies a community against the other going all tribal. Another scenario is when public scandals and mismanagement is the order of the day of government what are the investors to think?

In my view Brand Kenya is supposed to have from inside outside rather than just trying to do patch up work on the extremely spoiling image of the great nation. This should be an initiative for a cross section of the whole country. Every persons to be involved I expected to see the president in the foreground of Brand Kenya the PM was supposed to be on the foreground too but what did we see at the launch PS and people from the department and yeah our very own image portrayer the media. The previous initiatives looked so empty and almost disappointing struggle for damage control. The likes of Vision 2030 and The Kenya We Want.

We should be Branding Kenya from within we put policies to run and sustain the country regardless of the situations. We should have good and practical food policies that guide the importations, exportation, supply, distribution and production of food. This would ensure we have food security. We should ensure safety and security of Kenyans and their properties is paramount to the governance of the country. We should ensure we have policies to ensure basic wants like water and housing have been addressed appropriately. Empty promises made by politicians make the issue of Brand Kenya as another attempt of PR waiting to fall since we see nothing to sustain its accomplishment.

Being optimistic as they say its our duty as the Kenyan citizen to speak well of the beautiful country. The initiative should be done on a serious note such that the given TV programs identified should address the issues rather than cover them and better yet bring the solutions but surely we need politicians to be answerable so am thinking there involvement in the discussion and forums would just help us identify which of these leaders are for real. We love this beautiful country Kenya God bless it as we try every way to stay above!!!

By Neville D. Nelson

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Global Warming’s threat to the world’s young generation

african children_water_basins

Water scarcity in Africa

If one thought things could not go from bad to worse for Africans then am afraid one was grossly mistaken. The news coming out on world environmental day (June 5th 2009) painted a bleak if not scary picture for millions of Africans leave below the Sahara. Without the resources and human capacity required to meet the threat of global warming African lands are threatened with desertification and their species with extinction.

Already the Mount Kilimajaro glaciers are gone and it looks like the Mount Kenya glaciers will be gone in the next 10 years or so. These are East Africa’s primary sources of water that feed into the numerous parks creating the low lying savannahs and environment for African wildlife to survive.

Unless swift and desicive action is taken then we could also theoretically posit that the African is in very grave danger.

However it is not only Africans who will face the music. 2000 scientists report that the Permafrost “ice cap” that covers much of Siberia is about to melt and once that occurs trillions of tonnes of methane gas will seep into the atmostphere creating an immediate and exponential growth in size in the carbon layer that is heating up the earth creating all sorts of unimaginable catastrophe. It is at that point folks we can all kiss ourselves goodbye.

Watch the Movie “Home” which gives you an entertaining but scary lesson on how man has messed with nature and how nature is messing us back. Time 1:33 Hrs

Featured in this video.

  1. Dubai, Las vegas, New york, Lagos, Shanghai, Tokyo and old African cites
  2. Israel irrigation projects
  3. American food industry
  4. China’s rapid growth
  5. Africa’s growing slums and informal settlements
  6. Shrinking Coral reefs, forests and marshes
CLICK PLAY TO WATCH THE MOVIE
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This is a short video by Al Gore showing the scientific study on Global Warming and its effects.

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Does Kenya need a Dictator? of Democrazy and AID

Jomo Kenyatta Benevolent Dictator

Jomo Kenyatta Benevolent Dictator

This is an article written by my friend Kennedy Oduor. In it he gives his reasons why Kenya needs a dictator. I have some sympathy for what he says because if you look at the progress of Rwanda under President Kagame or Uganda under President Museveni it has been relatively more dramatic and more smooth than that of Kenya.

However i would add we need a benevolent dictator in Kenya and we do not really need an authoritarian regime as Ken proposes. However one can see where he is coming from as democracy has not delivered to Kenyans any substantial gains yet.

Odour also tackles the question of AID from the west and here we are in agreement we need to enable our people to stop becoming more dependent on AID and turn them into entrepreneurs.

This is why we have formed the STOP AID MOVEMENT join us at http://stopaid.org

Without further a do here is the explosive and thought provoking article from Ken. Feel free to comment and lets have a discussion on this.

——–
Kenya does not need democracy. Kenya does not need a new constitution. Kenya does not need a judicial reform or police reforms.

Kenya needs a dictator.

To me democracy is embargoed by God, democracy is the opiate of NGOs, and other groups that thrive best in calling press conferences and telling the evils in governments. Democracy is the wishful thinking of the USA that keeps bombing civilians in Afghanistan and Iraq. It’s the blabber of the fangless UN and NATO that stood when 10,000 people were being killed per day in Rwanda.

Democracy is the day-dreaming of Martha Karua that forgot about the same when her tribesman took over the leadership of this country and a click of them decided to sweep it into an abyss. It is the wallow of Raila Odinga that cannot point a finger at Museveni the warlord when he directly insults his people.

Democracy is your jealousy when you can’t get the job coz your uncle is not the employer. It is the slow, backward thinking that all Luos will gain visas when Obama became President of USA. Democracy is an fantasy of the West that keep pouring aid into Africa when that money is channeled into secret kitties.

Democracy is the invention of God. Handed over to man. And which man said, “Sorry we don’t like what it sounds like. Please give it to NGOs. They can better make noise that we won’t listen to!”
That is why KENYA NEEDS A RUTHLESS DICTATOR. Not for five years but for 15 to 30 years. There are two sides of head, the right and left cheek. One side can be scarred while the other is smooth like the thigh of a geisha girl. A good example is Saddam Hussein. He was good to the extreme and bad to the extreme. He made sure Iraq was economically strong, even with the gothic hand of Bush constantly poking him.

He built first class highways, universities, hospitals, and sewerage systems. But sorry that he gassed his own people, massacred his opponents. There are two sides of the coin. And am talking about the good side of a dictator.

We need an economic dictator to be precise.

Look at Chavez the Venezuelan Kingpin. His country is so rich he once gave free oil to USA. How about Gaddafi? He doesn’t want people telling him to go home. Why? Because he knows that people like Kibaki will take over from him and mess his hard earned economic strength? He crashes the opponents with a huge punch. He throws belligerents into the red sea. Why? Because he knows that should he leave, the rats will invade the treasury and start dragging out sacks of maize even though they know that you cannot cart away more than 10 billion without being seen.

Ohh and look at Cuba. The brothers have proved good shepherds of the Cuban flock. They don’t have those fuel-guzzling cars. They don’t own golf resorts. They are angels sent by God to tell Americans that you cannot assume the position of God. You cannot scatter armies across the world in the pretence of keeping world peace!

That is God’s prerogative, which even a big and tall Hussein Obama, cannot assume.
Kenya needs a dictator to take over this country. Raila can be a good dictator but lack the balls to take over land grabbed by people that were handsomely rewarded by the colonial masters. He cannot tell Moi to hand over the loot. He cannot tell the Kenyatta family to let go of the loot and the land.
Kenya needs a dictator so ruthless the thieves will start giving out stolen property without being asked. a dictator that will cut the ministries to ten or five. Call a press conference and announce:

“Today marks the true independence of this country from the dogs and the fat cats. It is sad but by the powers given to me by the constitution of the republic of Kenya, I hereby order the reduction of MPs’ salaries from 800,000 to 150,000. I further direct that all the ministries shall from today henceforth be given Toyota 110 and…and if they deem so unfit, they should be allowed to use their salary to acquire Mercedes E-Class”.

“I further direct the removal of the Anti-corruption Commission and order them to be redeployed into a new Ministry of Social Welfare for Orphans and widows. I disband the institution of both the Prime Minister and Vice President. I further direct that no one should masquerade as an assistant minister as I will not appoint any, but will bestow my trust in Permanent Secretaries and the Ministers whose positions will be advertised and every Kenyan with the relevant qualifications shall fill”

“With powers conferred to me as the only one above the law, I order no Presidential elections until after 30 years. This order is only subject to change should I die. I bar all persons against talking politics in the press, but to personally write to me should they have an idea or complaints. Alternatively call me on 000001009000111. I order that only journalists without blood to write columns that cast doubt on my type of leadership!”

“I scrap all entertainment and sitting allowance for both the Ministers and MPs. How can you deliberate on the issues of your country while standing?”

“This now means that the tax payer has been saved. Not by me, but by The Almighty God. This means that the Kenyans shall have crossed to the Promised Land. The land that was promised by the past three presidents but none did give, instead they left you at the gates of hell”.

“I order the reduction of all taxes by 50%. I order that water and electricity shall be free of charge. The basic prices of commodities such as sugar, flour, and oil shall be one in all shops, supermarkets and village markets”

“Given that Kenya has not been involved in any cross border war since independence, we shall disband the corrupt City and Country Councils, and the Armed Forces, the Army will from now on constitute the same. They shall be trained on the psychology of parking and receipting”.

“And now I cut my own salary from 2 million to 500,000”.

“And now to my opponents that will call themselves opposition in parliament, be advised that you shall have nothing to oppose as we shall be giving to the people and not taking. I advise you against sabotage as this plot will be met with excessive force that it deserves. We are prepared to kill you for the sake of the country. We rather one head than thousands killed by drought and diseases”.

“We are messengers of God sent to set an example in Africa. To refuse blood aid from America, Germany, France and United Kingdom. We are the men and women sent to bring glory to the black continent – to give color to it”.

“We are sent to save the wounds between the legs of girls in Darfur, Turkana, and Northern Uganda”
“With this trend Gaddafi and I, through the help of Fidel Castro, Hugo Chavez, and Ahmed Abnijaad shall annex Africa…shall transform Africa into the true jungle it once was. The jungle without guns and aid workers”
“Let me take this chance to warn Museveni. I understand your crave for blood, Mr. Kaguta. It’s long since you pillaged in mass. I know that killing the Nilotes has been your obsession. In fact, let me be clear by saying that the Northen Ugandans have been reduced to ashes. You now are looking for more. Your appetite for blood is so high when you see the Kenyan Nilotes. But, I have news for you, Amin Destroyer! That the Kenyan Nilotes are under my wings. And should you try my patience again, I will push you over to the Congo basin where your soldiers are stealing gold!”

“God bless Kenya, God bless Africa, God punish the blood aid pretenders of the West!”

—-

Kennedy Odour is the Editor of Apprentice Life Magazine in Kenya.

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Dambisa Moyo’s Dead Aid :: The true story of economic aid to Africa.

Dambisa Moyo - Author Dead AID

I disagree heartily with the notion that Africa needs more economic AID to help spur its own economic growth. Indeed as evidence has clearly shown the last 50 years of economic AID have hardly helped any single country in Africa reach even middle income status. Furthermore the countries which have ignored economic AID like Malaysia and India have seen rapid growth and are now emerging as the dominant economies of the 21st Century. Indeed the AID dependency model that is employed by the World Bank and IMF has fueled corruption as well as laid back attitudes in governance.

Dead Aid

Dead Aid

Zambian economist Dambisa Moyo has spent the better part of this year canvassing around the worlds huge media networkings promoting her book “Dead Aid” which among other things compares and contrasts different economic models that have worked for the Tiger Economies and the failed policies in Africa.

I have posted some videos here for you to watch and please feel free to make your comments there in.

Rwandan President Paul Kagame and Kenya’s Deputy Prime Minister Uhuru Kenyatta also echoed this sentiments and urged African countries to reduce their dependence on Foreign Aid. Uhuru encouraged the Private sector especially social entreprenuers to work hand in hand with goverments to reduce this dependence. It is interesting African leaders are begining to read from the same page, which shows that dambisa’s book is timely. Watch these Videos below.

Please read this feature on Rwanda’s model of economic development by Jeff Chu. [Read Here]

ALJAAZERA INTERVIEW – RIZ KHAN

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PAUL KAGAME & UHURU KENYATTA

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BOOK REVIEW

The question of international aid to developing countries is one of the most controversial subjects in modern development literature. One simply needs to look at any local bookshop under the “current affairs” section and you are hit with many large and often time consuming volumes on the subject. So when I stumbled on DambisaMoyo’s book at my favourite bookshop (Waterstones Charing Cross Station), I felt a mixture of delight and nervousness. Delight because here we have a Zambian academic weighing in on a subject that has been the preserve of self-appointed “development experts”. This should fill every Zambian with pride and admiration. God knows we have so few Zambian economists ready to engage such serious issues, let alone publish a book on it. That feeling quickly gave way to nervousness because with so much written on this topic by leading experts such as Easterly, Collier,Riddell and others, could Dead Aid really offer any fresh thinking on the subject? [Read More]

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How Income Inequality affects Health in Society.

The main problem with trying to ascertain whether it is low income or income distribution that results in poor health is that there are a number of confounding factors that should be investigated to determine the nature of the relationship. In fact many studies have shown that the relationship between income and health is not a linear one. That is increasingly higher incomes affects health positively but at a declining rate. This immediately suggests that there are other confounding factors for which we have to account for that play a spurious or artefactual role between income and health status of individuals within society. These factors are related not with low incomes but with the relative positions of those incomes within the population. Therefore we can suggest that the low income does not cause poor health directly but it is the spurious correlation of factors related to income inequality that result in poor health. Consequently there is a body of evidence discussed below which shows that egalitarian policies which reduce the income inequality reduce poor health and increase life expectancy in countries that implement them.

Since we know that there are cases where low income does not always mean poor health we can dismiss the extreme view that low income always causes poor health. However we can now address the income health relationship at the population level where we analyse the effect of individual incomes comparatively within the population and their relationship with health. We can also show the artefactual relationship between income distribution and health always occurs if the effect of the individual’s income on risk of mortality is higher at lower incomes (Gravelle 1998). This confirms that the study of this relationship cannot be done at the population level but must be done at the individual level to show the relationship of absolute and relative income. Cross sectional evidence shows a strong relationship between life expectancy and income distribution in contrast with the gross national product per head or mean income (Wilkinson 1992). Here he gives the example of Britain and Japan which illustrates the possible effects of income distribution and health showing that even though they both had similar income distributions and life expectancy in 1970 Japan has shown to have a higher life expectancy due more egalitarian approach to income distribution. However Britain has shown to have higher mortality rates due to higher income inequality. This enforces the point that health inequality is attributable to relative rather than absolute income. These results also show that we cannot link any association between income and health to be of direct causation but we must identify other confounding factors that lead to correlation between relative income and poor health.

Studies have attempted to discuss the problem of causation between health and income by showing that the variable and factors related to income tend to be collinear making their effect on health unclear (Rodgers 1979). He effectively states it is plausible to conclude that there is causation since there is an affect of income on mortality via intermittent variables. These factors such as inequality of health, educational and social background result in the distribution of income not the mean income comprising the function that results in changes of life expectancy. Hence it would be more correct to propose that the relationship between income distribution and poor health is a more spurious one. This point is enforced by a study done by Rodgers on significance testing which shows that the significance of income distribution is consistent across different countries because life expectancy at birth is higher by five to ten years in egalitarian societies as opposed to less egalitarian ones. He also rules out any insignificance on his study due to poor asymptote. These results confirm the position that increased income inequality does result in poor health as opposed to low income.

Sapolsky’s more recent study uses an psychological approach to show that stress as a result of income inequality does lead to poor health. This alternative argument would allow us to control individual income while assessing the impact of these external variables(i.e. stress and stress related illnesses). He analyses social rank in non human animals to form a basis in determining the effect of stress related physiology and stress related diseases to help him form an opinion on the stress factor in animals, which is then observed in human beings. This is based on the notion that human beings are fundamentally animals hence it is likely inherent human nature influences play a role in the determination of the health status of individuals. This would also explain why data stretching back centuries shows that each step down the socioeconomic ladder reduces the mental and physical health prospects of an individual (Sapolsky 2004). This is because as stress and stress related illnesses increases triggering a whole host of physical problems like increased smoking, drinking, obesity and negative lifestyles resulting in decline in health status. In addition decreased socioeconomic status leads to decrease in health protective measures like joining health clubs. All this suggests that feeling poorer than others are a result of established societal mechanisms that form social classes. These mechanisms seem to have an adverse impact on the psychological health of individuals at the lower income levels or lower social classes. Further studies have shown that poverty is not a strong predictor of crime as is poverty among plenty i.e. relative income. This relationship between psychological health and socioeconomic status shows that the effect of “perceived” low income on health exists only if it is compared at the individual level with that of other individuals within the same population. Only then can there be correlation with factors such as stress and perceived poverty which results in detrimental effects at each lower socioeconomic level. For example in the United states the higher the degree of income inequality the poorer the health. It is also critical to observe that in an egalitarian society the distribution of wealth would reduce the health status of the wealthy slightly though this effect is too small compared to the general effect of income inequality in less egalitarian societies. However so as to resolve any lingering doubt of this relation it is important using variable regression models we examine further the effect of these indicators accompanying income distribution in society.

From the discussion above we can see various studies have investigated the link between income and health and have shown there is no causation between low income and poor health. However the studies have shown clearly a spurious correlation exists between income distribution and poor health status. Results of logistic regression models (Kennedy 1998) indicate that factors such as health insurance status,  smoking status, education status create a spurious relationship between income distribution and mortality. More importantly these models show that income distributions are associated with self rated or poor health even after mean individual income is accounted for, further enforcing the point that it is income distribution which should be considered when showing correlation with other factors to poor health.

In conclusion we can state that it is income distribution rather than low income that affects the health status of an individual. The relationship between income and health is clearly not a causal one because of the effect of intermittent variables that spuriously affects health status of individuals. We can simply visual a scenario where a person with a low income is able to have better health than an individual who has high income but feels that he is not doing well comparatively. The factors that surround income inequality create a much higher risk to poorer health incomes than those surrounding low incomes. This is a useful point to consider while trying to establish the factors that make some societies more egalitarian than others. It is also important for future studies to continue to investigate the psychological factors related to income distribution because they seem to catalyse other problems such as drug abuse which increases health problems for the individuals concerned. These negative outcomes of income inequality suggest it would be too simple to suggest that low incomes cause poor health.

References:

Wilkinson R. G. (1992). Income distribution and life expectancy. British Medical Journal, 304, 165-168

Gravelle, H. (1998).  How much of the relation between population mortality and unequal distribution of income is a statistical artefact? British Medical Journal 316, 382-385.

Kennedy, B. Pp. Kawachi, I., and Prothrow-Stith, D. (1998). Income distribution, socioeconomic status and self rated health: a U.S. multi-Level analysis. British Medical Journal, 317, 917-921

Rodgers, G.B. (1979). Income and inequality as determinants of mortality. Population Studies, 33(2), 343-351

Deaton, A. (2003). Health inequality and economic development. Journal of Economic Literature, 41(1) 113-158.

Sapolsky, R. M. (2004). Social status and health in humans and other animals. Annual Review of Anthropology, 33, 393-418.

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Of Parental Divorce and Children

Parental divorce generally harms children significantly in the long term financially, psychologically, socially, physically and mentally. This due to these children lacking social capital, a term used to decribe social and emotional support systems that exist due to the existence of families within society (James Coleman). This is fundamentally because divorce involves the separation of husband and wife and break up of the family in an acrimonous manner that usually deprives the children of the benefit of a secure and stable informal learning environment. Divorce consequently reduces the ability of parents to buffer their children against negative factors in the environment. However there are some exceptional cases where divorce reduces harm to the children in the short term especially where there is abuse from either parent directed at the spouse and children. Divorce may reduce the physical and some physcological harm to the children but long term harm will still occur.

Divorce affects the children financially because of the break up of the financial structure within the familly because both parents now have to rely on their own personal incomes to survive whereas before they would usually pool their incomes into one financial resource that would usually help achieve more family goals. Biblarz and Raftery state “Since children’s success depends on the economic resources and equivalent services that parents provide, children who spend most of their childhood in a two-parent family (biological or stepfamily) will have the highest attainments because two parental figures are present to provide complementary resources.” As a result the separating couple individually would now have to use their personal incomes and effort to set up their own households hence spending less on goods benefitting the children such as quality education and better health care. Furthermore if the father were to set up another household elsewhere than these children would suffer more because the father would spend less on them and as a result they would be strained financially. Evidence shows that most fathers in the British cohort study (Kiernan 1999) do not give child support to their children because of fear how the mother would use the funds. Even in the cases where fathers do give support to their children they usually give far less than what husbands support their children with. This indicates that divorce creates a financial constraint reducing the availability of beneficial goods for children whose parents are divorced.

The social impact of divorce is enormous because study shows that children from divorced families tend to be more prone to divorce their partners later in their lives than those who come from normal households. Infact the impact on divorce in children is greater if the parents divorce in the childrens formative years, i.e  between 0 and 19 years as opposed to divorce in their later years 20 to 33 years (Seltzer 1994). This is because in the formative years children need both parents to develop adequate social skills and values that will help them form stable relationships in the future. For example male children need their fathers to guide them to become responsible men. The missing father is more devastative for boys than for girls as shown in the Moynihan report (1965). Men who grow with their single parent mothers tend to behave in a deviant way possessing violent natures eventually getting involved in criminal behaviour. Divorce also harms children because as Biblarz argues that divorced mothers tend not to get social support and therefore do not enjoy socioeconomic benefits that for example widowed mothers enjoy. This suggests children from divorced families are worse off in the long term than children from widowed families. British birth cohort hazard analysis (Kiernan 1999) for ages 0 to 33 shows how children from divorced children perform socially i.e the probabilities that they will exhibit behavioural problems at any age are much higher than those from stable families which indicates that divorce has a higher social impact for children from divorced families especially if the divorce occurs during the formative years of the child i.e. ages 4 to 19.

Many children from divorced families also tend to get affected psychologically and eventually get depressed and suicidal as opposed to children in normal families. This is because first and foremost they are unable to take sides with either parent during the divorce making them feel as though the divorce is their fault. Such children usually get affected by their parents arguing and fighting and this errodes their personal confidence and sense of security. “Children of divorce have lower attainments than children from two-parent families because they have had sustained exposure to their parents’ discord”(Biblarz and Raftery 1999). When the divorce eventaully happens the children feel inadequate and may end up being emotionally distabilized should no counselling measures be taken. This leads to drug abuse in some cases and in the most extreme cases suicide.  Divorce also forces couples to move apart sometimes very far from each other. Should the non custodial parent (usually the father) not communicate frequently, then the children may also feel a sense of loss of a parent. Girls are affected by the absense of their father by tending to be emotionally detached (withdrawn) from boys and men (including their husbands)  later in their lives. Divorce however seems to have a larger effect on boys than on girls (Kiernan 1999),  this translates in behavioural and psychological problems having larger outcomes on boys explaining why most boys in this categories exhibit more violent  or criminal tendencies than boys from stable homes. Girls seem to get affected by becoming neurotic depressive, a condition that is also exacerbated by their mothers behaviour. This situation is also carried into future relationships and may explain why marriages of these children don’t seem to last.

Divorce causes long term physical and consequently mental disorders for children who are between the ages of 0 and 4 in the long term, (Kiernan 1999). This is because when divorce happens when a child is of that age it means that the child does not get the adequate care it needs to develop fully. For instance if the child is in the custody of the father it misses breastfeeding opportunities as well as post natal care that leads to mental and mental deformities later on. This makes them unable to do well in sporting activities and school activities. In this regard these children are at a great disadvantage compared to their counterparts in stable families (Duncan and Duncan 1969; McLanahan and Sandefur 1994). Also due to the strain in financial resources in single parentship, these children are aslo not enrolled in positive social groups such as football teams or piano,ballet classes hence do not develop extracurricularly. As with the case with social skills lack of additional skills means that they rarely develop into leadership roles, a characteristic they take to their marriages. This is particularly detrimental to men who are then expected to assume the leadership role in a family but are normally unable to do so because of their own upbringing.

In conclusion the long term effects of divorce on children are detrimental because they lead to many psychologically and physical disorders that make it difficult for these children to adapt social values that will help them in forming stable relationships in the future. Divorce also clearly has an effect on the financial and social well being of children who are affected by it. The full effects of divorce can be reduced by surrounding the children with an enabling environment that will pass onto them social values and required financial and emotional support that will reduce the long terms effects of divorce. I argue that step families and specialized mentorship in schools will go someway in reducing these harmful effects of divorce. However there are clearly situations where divorce does mitigate against physical, emotional abuse that children may be getting from one parent. However in this case though the divorce would be better in the short term, these children would tend to be worse of than children whose parents are non abusive because they would suffer the long term effects of the divorce as well as the abuse.

REFERENCES

Kiernan, K. and Cherlin, A. J. (1999). Parental divorce and partnership dissolution in adulthood: evidence from a British cohort study. Population Studies, 53, 39-48

Ni Brolchain, M. (2001). ‘Divorce effects’ and causality in the social sciences. European social review, 17(1), 33-57

Biblarz, T.J. and Raftery, A. E. (1999). Family structure, educational attainment, and socioeconomic success: rethinking the “pathology of matriarchy “. American Journal of Sociology, 105(2), 321-365

Seltzer, J. (1994). Consequences of marital dissolution for children. Annual Review of Sociology, 20, 235-266

Mc Lanahan S. and Sandefur, G. (1994). Growing Up with a Single Parents: What Hurts, What Helps? Harvard University Press, Cambridge, Massachusetts.

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Why do people Cooperate?

Many theories have attempted to address the question why people cooperate by examining the roles individuals play in groups, circumstances and even controlled or programmed experiments that test for responses to action or inaction within the group. What is clear even in my own experience is that it is important for cooperation to exist simply for mere survival. For example biological processes of different human body organs cooperate to ensure the whole body functions properly.  However cooperation is also not just a biological or deterministic process alone but a rational one as well. Rational choice decisions on the part of individuals also clearly play a role in determining whether they cooperate or free ride. Cooperation is also about reciprocity which is derived form the notion of kindness and assumption that one good turn deserves another, which is also considered to be a driving force of cooperation. Interestingly some theories develop the process of cooperation further to include sub processes such as punishment and rewarding to ensure that positive cooperation is rewarded and free riders are penalised for their inaction. In this regard I look at game, rational choice and social behavioural theory to provide evidence to the claims I have made above.

Axelrod argues that people cooperate because of mutual benefits they derive from working together even as they pursue their own individual interests. Here he gives the example of senators working together to derive mutual benefit that will safeguard each senators interests resulting in a set of norms that govern cooperation in the senate. Game theory shows that mutual cooperation results in mutual benefits though if one pursues his self interests then the benefit is higher as shown by the prisoners dilemma where defectors derived the most points by defecting early which meant the other party got nothing. However if both parties cooperated they each got the same significant points deriving mutual benefit. If both parties did not cooperate and defected then they would each get the same penalty. This goes to show that people will cooperate as long as the mutual benefit is higher than the penalty of not cooperating and if they are sure that the other person would not defect. A good example given by Axelrod is the live and let live behaviour exhibited by the British and German soldiers in the trenches of the Second World War. These soldiers would attack each other when ordered to do so but desist from doing so when there were no orders. In this case soldiers from both sides would cooperate not to do each other harm unless ordered to do so. People also cooperate because of the possibility they will meet again. That is choices made today not only influence current outcomes but also future ones as well. The idea here is that people will cooperate in the present anticipating future cooperation, so if the parties recognize that they will need each other in the future they do what they can to cooperate. As shown by evolution biologist William Hamilton (Axelrod 1984 Chap 5) cooperation can occur without foresight because of the biological nature of organisms to survive by providing beneficial responses to others. This individual is likely to provide these set of genes to their offspring hence the cycle of cooperation continues biologically to the next generation.

Many studies show that reciprocity is a major motivational force with regards to cooperation of individuals. Reciprocity makes cooperation between peoples possible even if there are a large amount of people who don’t cooperate (defectors) and people who are new to the game and have not played before (newcomers). Fehr (1998) describes reciprocity as the behavioural predisposition to cooperate conditionally on others’ cooperation and to punish violations of cooperative norms even at a net cost to the punisher. This conditional cooperation is based on the degree of self interest of each party and whether each person is willing to contribute to the common good of the others at a cost to themselves. Fehr’s postulates that the presence of a punishment mechanism is also important in making people reciprocate because there is now a means to reward those who reciprocate and to punish those who are selfish. However what is also stressed in his “thesis” is that positive reciprocity would induce selfish people to cooperate with the objective of gaining some direct benefit from the cooperative people. Similarly the presence of negative reciprocity would also force the selfish people to be less opportunistic because of fear of getting punished by other selfish types. This is an interesting point because it also shows that selfish people also punish each other for increased opportunism. Fehr captures this in a series of game experiments where the games which are repeated without punishment lead to 53% of the participant’s free riding completely as compared to 80% of participants cooperating where the punishment is enforced by the reciprocators all the time. This was also shown by Axelrod in tit for tat experiments which showed that as long as people acted in the mutual interest of the other party then other party would respond in kind. Programs that constantly punish or enforce cooperation are not better tit for tat systems than those systems that reward cooperation and/or punish free riders. Therefore it is clear that while rewarding is an important force that ensures that people do cooperate, punishment is also important in ensuring that the free rider problem is solved. This ensures that cooperative members continue to cooperate in the group because they can see an effective system that rewards them and allows them to punish free riders.

A more rational approach is provided by Micheal Macy (1990) who reformulates Oliver Marwell’s theory of critical mass to show how cooperative responses are formulated by social responses and cues generated by the response of others. Here contributors often fall into a social trap created by the free rider problem while trying to address the issue of collective gain. This idea of critical mass is unique in the sense that it tries to address the issue of the cost of cooperation. Indeed there are occasions when individuals can make rational contributions to a group without diminishing the benefit to themselves, this would imply that the cost of contributing does not increase with increase in size of the benefiting group. However there are instances where it is necessary to have a balanced number of contributing members and free riders without diminishing the benefits to the proactive members and consequently turning them into free riders. Therefore it is necessary for there to be a critical mass of contributors who cooperate for the sake of the rest of the group who don’t. Rational choice theory observers that volunteers or contributors would have to observe the cost effectiveness of their actions so as to maximize the benefits of their contributions. According to Macy social learning theory provides a broader behavioural foundation for the theory of critical mass. The example he gives is that behaviour of actors in utilizing social norms that lead them to volunteer without purposefulness. Macy’s contribution here is that if a contributor is able to rationally decide that there is a critical mass of contributors that can sustain the overall group then that contributor will cooperate with others hence showing that people cooperate because they are rational and able to decide when it would be futile to do so.

In conclusion cooperation is sometimes a rational and adaptive process that depends on the nature of the group of participative individuals and how they relate to each other. Game theory experiments like tit for tat show that individuals adapt to positive previous treatment positively and negatively towards previous negative treatments. People can also cooperate without foresight which further enforces the point that cooperation can be a deterministic or adaptive process. We also see occasions where individuals may rationally decide to defect if they sense that the other party is about to do so. This shows that there is also choice available when it comes to people cooperating. This idea of rationality is also enforced by the fact that individuals cooperate because they anticipate they will need to cooperate with you again (foresightedness). This contrasts with the deterministic nature of cooperation vis a vis rational choice decisions which help a person determine which relationships are worth keeping. Another key concept in cooperation is the idea of reciprocity and how it plays a role in rewarding of contributors and punishment of selfish free riders. These theories are very useful in forming guidelines for governing group relationships and participation because it seeks to measure cost effectiveness of individual actions in a group and how best people can cooperate.

References:

Fehr, E. and Gintis, H. (2007). Human motivation and social cooperation: experimental and analytical foundations. Annual Review of Sociology, 33, 43-64

Fehr, E. and Gachter, S. (1998). Reciprocity and economics: the economic implications of Homo Reciprocans. European Economic Review, 42, 845-859

Axelrod, R. (1984). The Evolution of Cooperation. Penguin, London

Macy, M. (1990). Learning theory and logic of critical mass. American Sociological Review, 55(6), 809 826

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The change of the age of marriage in industrial societies.

Introduction

The age of marriage has changed drastically of the 20 century among women. An example given by Oppenheimer (1997) indicates that the single rates for women under 25 years rose from 14% in the 1960′s to 42% in the 1960’s. This suggest that either women have found a viable alternative to marriage before that age or that circumstances are forcing them not to marry by that age. A number of theories are mentioned in the studied texts that can be categorised into economic, socioeconomic and sociological theories. In this essay i will be discussing Becker’s “new home economic theory” which describes household activities as a sum of economic functions and consequently how the industrialization process affects the marriage process. I will also be discussing socioeconomic theory that shows how social factors coalesce with economic factors to cause the delay in marriage timing.

Economic theory as defined by the Princeton University online glossary is a theory of commercial activities such as the production and consumption of goods. With respect to this essay economic theory states that women’s increase in economic independence has led to a reduction in marriage desirability (Berk 1983).  This is attributed in the new home economic theory (Becker) to the industrialization process that has lead to many women foregoing household economic functions for careers that supplied them with income security hence reducing their dependence on the men for their daily needs. Hence this theory holds in part a decline to gains in marriage due to women independence is reason why there is an increase in delayed marriages.

Becker postulates that the main gain to marriage is due to the mutual dependence of both spouses due to their own specialized nature. This implies that while the woman would be concerned with household activities the man would be in charge of finding an income that would supply the family needs. Hence as women tend to take new economic roles as a result of industrialization they become less specialized in household activities and men also begin to take up new household roles.

Parsons (1949) maintains that sex role segregation is a functional necessity in the stability of marriage because it prevents disruptive competition between husband and wife. Becker (1981) in line with this thought views married men and women as potential trading partners with man focusing on market work while women are concerned with home production. This specialization provides major gains to marriage for each partner and is reduced when incomes fall and the woman is forced to participate in the market production. This leads to strain in marriages and consequently divorce and also a delay factor in single couples with women now tending to focus on the more economic aspects of her life.

Part of the economic theory can be explained from the young men’s income position, which is a largely ignored factor with regards to analyzing the change in marriage age. Young men tend to wait until they have established a career path before they get married. This largely because of their role as the provider in the family and the challenges with become the head of the household. This has led to suicides, divorce and many men absconding their duties due to the pressure of maintaining an economically sound household. In the industrial age the gains for marriage for men are declining because of increased participation of women in the labour market. This increase the delay in age of marriage for men as they find it hard to find a woman that supports his own agenda for his career by providing for his needs at home.

While having had a look at various explanations of the economic theory proposed by Becker, we can also show how sociological theory can help construct a framework Oppenheimer uses to analyze variously how social action, social processes, and social structures work. Oppenheimer further develops the theory into a socioeconomic theory by borrowing Becker’s ideas on the economic aspects of marriage and merging with social occurrences that also influence the marriage timing of the cohort. Oppenheimer (1997) indicates that marriages tend to be delayed due to the trend in many couples to cohabit before they marry. Oppenheimer postulates that in the 1940′s 3% of the women less than 25 years cohabited compared to 37% in the 1960′s. Hence cohabitation seems to becoming a stage in the marriage process. This process of cohabitation shows that women’s economic independence is not the answer to explaining why women are now marrying much later.

Cohabitation as a social occurrence also reduces the cost of search and also reduces the risk of promiscuity while pooling resources creating a more stable economic environment that can lead to successful marriages. Therefore cohabitation and the rise in delayed marriages is decreasing the rate of marital instability due to the stable nature of partners who tend to have delayed their marriage as opposed to those who marry young and consequently face greater stress due to lower capacities to deal with household challenges like providing for the family health, financial and social needs. However Oppenheimer states that the situation is different among African American women who for one reason or another find themselves as single parents and have to find their own economic independence in order to survive.

Another issue is the increase in selection and socialization in the search of the marriage partner as a result of socioeconomic issues that are arising due to the continuous industrial process .Hence assortative mating is reduced due to uncertainty about the important attributes that a prospective partner should possess leads to delay in the timing for marriage. Uncertainty also due to the establishment of ones own career also delays the timing in which a person thinks is the best time to get married in the industrial society. Oppenheimer argues that work is such an influence in structuring life that any career uncertainties will affect behaviour and attitudes towards marriage formation. This results in women not feeling ready to marry until they have achieved some career goals. As a result the search for the perfect partner with desired characteristics, like being able to provide economically or possessing certain abilities that show future economic achievements come into play in this socialization process. This shows that desirability may not necessarily be objective but is influenced by certain fantasies a woman may have with regards to a perfect partner. This analysis shows that in general women tend to be economically dependent on men even though they may have their own working careers. Hence the theory of economic independence theory does not hold against this sociological argument.

Using the Job search economic theory to describe search in marriage we can differentiate efficient searches from costly ones as a function of how one uses time and resources to efficiently find the right partner in the marriage market while observing the opportunity cost of keeping a certain partner or continuing with the search of another partner. Hence we can say if the opportunity cost of avoiding the search for a suitable partner is high then it might be better to delay ones marriage until it becomes less economically sound ( i.e when cost of the search is equal or higher than the returns of the search) to continue with the search. Therefore what tends to happen is that people will tend to look for the minimum acceptable match. This is described as anyone within the acceptability range; anyone who falls out of this range is deemed unacceptable and would therefore not be considered as a partner. However it may not be prudent to view the marriage search process from a purely economic point of view but from a social one as well, where we consider both the social and emotional aspects of a relationship and how they support the build up to marriage rather than the economic and financial aspects of the partnership. This dual assessment of marriage form a socioeconomic theory on how financial or economic factors participate with the social environment of dating or potential couples in the search process, resulting in a change in the age of marriage due to the delay in the search process.

Another crucial point to mention with regards to marriage search is how education plays a role in the increasing the efficiency of the search process. Educated people tend to be aware of more important characteristics that they need to look out for during the search as opposed to the young couples who start dating at an early age. Hence it would be better for people to delay the marriage selection process until they are confident that they have made an educated decision. This socialization process increases the stability of marriage.

In conclusion new home economic theory as proposed by Becker leaves out a lot of social actions that have been shown by Oppenheimer to contribute to the delay in the age of marriage in Industrial society. It is therefore in my view prudent to develop a socioeconomic theory based on empirical evidence to show how social and economic factors correlate.  Oppenheimer in my view has reliable theories that explain both the social and economic aspects of marriage and hence we are able to arrive at more sound conclusions as to why age of marriage is increasing among men and women.

References

Oppenheimer, V. K. (1997). Women’s employment and the gain to marriage: the specialization and trading model. Annual Review of Sociology, 23, 431-453

Oppenheimer, V. K. (1988). A theory of marriage timing: American Journal of Sociology, 97(1), 143-168

Pampel, F. C. and Peters, H. E. (1995). The Easterlin Effect. Annual Review of Sociology, 21, 163-194

Berj, R. A. and Berk, S. F. (1983). Supply-side sociology of the family; the challenge of the new home economics. Annual Review of Sociology, 9, 375-395

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Social Networks and the Labour Market.

Introduction
To understand this question we must first understand the terms social networks and the labour market. A social network according to the “chatmine.com” glossary is a map of the relationships between individuals, ranging from casual acquaintance to close familial bonds. A labour market as understood in the classical sense defines labour as a commodity subject to the economic realm of demand and supply. The neo classical theory additionally proposes that all participants within the labour market have perfect knowledge about demand and supply in the job market. In reality this is not the case as people tend to rely on others for information. Hence then it is possible to disprove the existence of the perfect labour market in reality and the importance of social networks by showing how social networks bridge the information or knowledge gap between demand and supply within the labour market and also case scenarios how relationships within these networks determine the movement of labour within society.

By doing so I will examine the social factors that form the structure of these social networks.

Job search is defined as the sum total of activities that an individual goes through before he or she is able to find a job that is available. This is a key component in discussing various aspects of social relations.

Inertia is defined as an initial opposing force that resists change from a current format. I will show how inertia as a positive and negative force influencing the labour market.

Ignorance is defined as the lack of information due to lack of awareness of certain conditionality.

Income distribution is defined as the distribution of incomes across various social strata or class within society and specifically the labour market.

Social relations are defined by as the ties between people that are as direct result of lifestyle and education levels.

Inertia as a force in the labour market.
Inertia as described by Granovetter(1995) is the social and/or institutional pressure that creates obstacles to the free movement of labour as defined in economic theory. Social networks like trade unions essentially provide a basis for inertia to act as a force in changes of wages according to the demand and supply of labour. This in turn repudiates the notion of a perfect labour market and shows clearly some of obstacles employers have to surmount while making economic adjustments are due to institutional rules and social agreements that they have no control over. It is also arguable that inertia in social relations may act as positive force in control excessive movement of labour but clear indications are it creates an in efficiency in the labour market that destabilizes the notion that social relations do not influence the labour market.

An example as given by Granovetter includes agreements and other legally binding documents that disallow wage reductions by employers. In this case the rules of engagement within this social network are determined by a set of legally binding rule that state if, how and when labour can shift from one job to another.

Ignorance of social networks and its effects on the labour market.
This can be described as the lack of information or knowledge of social networks by participants within the labour market. In order to examine the effect of ignorance in diminishing the existence of the perfect labour market it is important to analyse the causes of ignorance which may be other factors which I have discussed in this article such as weak social ties and poor education.  This as illustrated by Granovetter(1995 pg 27) in previous research study as the lack of knowledge or inaccurate knowledge by workers of pay terms in other companies. These ideas suggest to me that workers may not be aware of more efficient ways of searching for jobs through social networks either because of their own lack of quality education which limits their resources and social connections to people who matter. This leads me to my next argument, where I define social relations and some of the factors that result in different social relations forming.

Social relations and how they determine movement of labour.
This examines the role played by people who mediate on behalf of the job seeker and their effectiveness in getting the job seeker the job without much effort on the job seekers part. Most of these intermediaries are suitably placed to mediate on behalf of others and usually contribute to the labour movement in the higher paying jobs. Hence higher income jobs tend due to social relations go to those who don’t actively look for them. Granovetter in his journal “The strength of weak ties” tends to take a more logical approach in examining the role of ties between two people in forming relationships that in the future yield positive results with regards to job search. In effect the closer the ties the smaller the informational gap and the faster information will diffuse to a person.

I support this hypothesis with a logical argument similar to that given by Granovetter in his journal “The strength of weak ties”.

Argument:

If Mary has a job offer

If John is Mary’s friend and knows Mary has a job offer

If Peter is looking for a Job and Peter is John’s friend

Then John will tell Peter about Mary’s job offer

This situation is enabled by social and environmental factors that nevertheless contribute to the formation of social networks that at the end of the day determine the nature and direction of job movement. These are:

Income distribution and education status in the labour market.
Income distribution in the job market is not balanced as high paying jobs tend to go to those with more established social networks and as discovered by Granovetter.

The job search process for individuals who qualify for higher income jobs also tends to be shorter then for those seeking normal jobs due to social relations that determine where and to whom these jobs go to. Granovetter using the Reynold study shows the disparity in effort used by those with higher educational status in getting the good jobs. I agree that income distribution  is relative to educational status and that social networks tend to favour those with higher quality educational backgrounds in the labour market.

Performance of workers due to social relations.
Social networks also influence the performance of workers in their new jobs in that those who get referred to jobs tend to do better initially than those who are non referred. Arguably one may think that those who tend to be referred by others for jobs  should theoretically be mentally conditioned to relax in their jobs because they have not spent much effort in looking for work hence do not appreciate the value of the job they have been given. This tends not to be the case as Emilio Castilla in his study of workers in call centres discovered that the effect of referral ties continues beyond the post hiring process having long term effects on the performance of the worker at the firm in a positive way.

In conclusion social relations do seem to have effects within the labour market because the social factors that form these relations adversely affect individuals participating in the job market.

Inertia creates obstacles for employers to adjust wages according to adjustments to demand supply of labour due to established social norms and relations between employers and employees.

Ignorance plays a role in diffusion of information about demand and supply within the labour due to a lack of the minimum social relations to break the knowledge gap.

Social relations and ties build up social networks which influence the movement of labour especially for high paying Jobs. This affects the labour market adversely and leads to what people refer to as unfair income distribution.

Performance of workers is influenced by social ties that result in job referrals and as a result tend to result in higher efficiencies from those who are mostly referred to jobs, as well as those earning the highest incomes.

All these factors show the dependability of labour on social structures that exist in society. The results often are real economic disparities that create the rich and poor divide, as well as what is referred to as the unfair advantage that the rich well educated person seems to have over the average job seeker. This assessment of causality and its effect leads me to ascertain that social networks do matter in the labour market.

References
* Granovetter, M. G. (1973). The strength of weak ties. American Journal of sociology, 78(6), 1360-1380
* Granovetter, M. G. (1995). Getting a Job.  A study of contacts and careers.
* Castilla. E.J. (2005). Social networks and employee performance in a call center. American Journal of sociology, 110(5), 1243-1283

* Definitions: http://www.chatmine.com/glossary/index.htm

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