Labor Relations Commons^™

Unions And The Labor Market For Managers, John Dinardo, Kevin F. Hallock, Jörn-Steffen Pischke

Kevin F Hallock

We examine the relationship between the employment and compensation of managers and CEOs and the presence of a unionized workforce. We develop a simple efficiency wage model, with a tradeoff between higher wages for workers and more monitoring, which requires more managers. The model also assumes rent sharing between workers, managers and the owners of the firm. Unions, by redistributing rents towards the workers, lead to lower employment and lower pay for managers. Using a variety of data sets, we examine the implications of the model for the relationship between the employment and wages of managers and unionization. We find …

The Value Of Stock Options To Non-Executive Employees, Kevin F. Hallock, Craig A. Olson

Kevin F Hallock

This study empirically investigates the value employees place on stock options using information from the option exercise behavior of individuals. Employees hold options for another period if the value from holding them and reserving the right to exercise them later is higher than the value of exercising them immediately and collecting a profit equal to the stock price minus the exercise price. This simple model implies the hazard describing employee exercise behavior reveals information about the value to employees of holding options another time period. We show the parameters of this model are identified with data on multiple option grants …

Data Improvement And Labor Economics, Kevin F. Hallock

Kevin F Hallock

The expansion of available data for research has transformed empirical labor economics over the past generation. This paper briefly highlights some of the changes and describes a few examples of papers that illustrate the advances. It also documents the changing ways data have been used in the Journal of Labor Economics over the past 30 years, including a trend toward a higher fraction of papers using any data and, among those papers using any data, a higher fraction using nonpublic data, a higher fraction using international data, and more frequent use of multiple data sources. Finally, this paper describes work …

Estimating Pay Gaps For Workers With Disabilities: Implications From Broadening Definitions And Data Sets, Kevin F. Hallock, Xin Jin, Linda Barrington

Kevin F Hallock

Purpose: To compare pay gap estimates across 3 different national survey data sets for people with disabilities relative to those without disabilities when pay is measured as wage and salary alone versus a (total compensation) definition that includes an estimate of the value of benefits.

Method: Estimates of the cost to the employers of employee benefits at the occupational level from an employer survey data set are matched to individual-level data in each of the 3 data sets. Multiple regression techniques are applied to estimate wage and salary and total compensation gaps between full-time men with and without …

Job Loss And The Fraying Of The Implicit Employment Contract, Kevin F. Hallock

Kevin F Hallock

[Excerpt] Most workers have one employment contract that is explicit and another one that is implicit. The explicit employment contract specifies working hours, compensation, and job tasks. The implicit contract involves expectations about the extent to which the employment relationship is not just a payment for labor on the spot market but instead is likely to continue over time. The possibility of a longer-term commitment between an employer and its employees in turn has a number of implications: for example, whether firms will seek to avoid mass layoffs unless or until absolutely necessary; whether firms may cushion the wages and …

Discrimination By Gender And Disability Status: Do Worker Perceptions Match Statistical Measures?, Kevin F. Hallock, Wallace Hendricks, Emer Broadbent

Kevin F Hallock

We explore whether perceptions of discrimination are related to ordinary statistical measures. The majority of disabled respondents report feeling some discrimination due to their disability, the majority of women feel some discrimination because of their gender, and a surprising number of men also report some discrimination. We do not find a strong link between perceptions of discrimination and measured discrimination perhaps because those who perceive discrimination feel that it occurs along other dimensions than pay. However, we do find a connection between whether a person feels his or her income is inadequate and measured discrimination for all groups studied.