A common concern in audit studies of racial discrimination is that names assigned to a particular race may also proxy for socioeconomic status. We conduct a correspondence study in Jamaica, a predominantly black middle-income country, and find that these concerns may be valid. The evidence from sending out over 1,000 résumés suggests employers prefer applicants perceived to be from high-income backgrounds. While qualifications are not independently important, those with names preferred by employers have a lower chance of being selected if they have high-quality résumés. The results suggest that class discrimination may matter as much as race discrimination. JEL Classification: I31, J71, J64

Purpose This study aims to explore the sustainability of Jamaica’s public debt over a highly volatile period of time. Design/methodology/approach The authors use a suite of econometric tools, including, unit root testing, cointegration testing and estimating a fiscal reaction function. The authors control for structural breaks in the regression analysis. Findings The authors find that whilst reschedulings might be indicative of cash-flow problems in Jamaica, fiscal policy has responded effectively to increase the public debt, thereby making the debt sustainable. Notwithstanding the political economy and social demands of the population prior to the impact of the pandemic, the implications of higher debt stocks (higher debt-servicing and lower social expenditures) might make this approach to fiscal policy and debt management infeasible. As a result, the authors recommend that the government will need to take an active approach in managing its debt position to facilitate responses to shocks and provide conditions within which maintaining fiscal discipline is feasible. Originality/value To the best of the authors’ knowledge, this is the first study to explore fiscal sustainability in Jamaica over this time period whilst taking into consideration structural breaks caused by the global financial crisis and debt restructurings. The authors also take into consideration variables such as exchange rates and the occurrence of elections, which have not been included in previous studies.

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Purpose The purpose of this paper is to examine the effects of a regional trade agreement among a group of small island developing states on trade creation and trade diversion. Design/methodology/approach An augmented gravity model and panel data are used to estimate the trade creation and trade diversion effects. The generalized method of moments technique is used to account for possible endogeneity. Country pair and time fixed effects are also included. Findings The regional trade agreement had a positive effect on intra-regional trade creation, but there was no significant diversion of imports from extra-regional trade partners. Practical implications Small developing economies can benefit from regional trade agreements (RTAs) among themselves. The trade diversion effects of such agreements are likely to be limited. Originality/value To the best of authors’ knowledge, this is the only paper which investigates the impact of RTAs among small island developing states.

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