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Ronald G. Ehrenberg

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Do Tournaments Have Incentive Effects?, Ronald Ehrenberg, Michael Bognanno Aug 2012

Do Tournaments Have Incentive Effects?, Ronald Ehrenberg, Michael Bognanno

Ronald G. Ehrenberg

Much attention has been devoted to studying models of tournaments or situations in which an individual's payment depends only on his or her output or rank relative to that of other competitors. Academic interest derives from the fact that under certain sets of assumptions, tournaments have desirable normative properties because of the incentive structures they provide. Our paper uses nonexperimental data to test whether tournaments actually elicit effort responses. We focus on professional golf tournaments because information on the incentive structure (prize distribution) and measures of individual output (players' scores) are both available. We find strong support for the ...


Academic Labor Supply, Ronald G. Ehrenberg Aug 2012

Academic Labor Supply, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The plan of this study is as follows. In the remainder of this chapter, some background data are presented on the academic labor market and new Ph.D. production in the United States. Chapter 7 describes a schematic model of academic labor supply and indicates the underlying trends since 1970 in a number of variables that contribute to projections of shortages of faculty. In Chapter 8, a general model of occupational choice and the decision to undertake and complete graduate study is sketched. This framework, available data, and the prior academic literature are then used to address students' choice ...


Comparable Worth In The Public Sector, Ronald G. Ehrenberg, Robert Smith Aug 2012

Comparable Worth In The Public Sector, Ronald G. Ehrenberg, Robert Smith

Ronald G. Ehrenberg

[Excerpt] At the theoretical level, we conclude that the case for comparable worth rests on the argument that the current distribution of female employees is based on discriminatory barriers which existing legislation have not broken down. If this argument is valid, the desirability of comparable worth depends upon one's perceptions of how the benefits it provides contrasts with the efficiency losses it induces. Given the trade-offs involved, ultimately one's position on comparable worth must depend on value judgments.


Comparable-Worth Wage Adjustments And Female Employment In The State And Local Sector, Ronald G. Ehrenberg, Robert S. Smith Aug 2012

Comparable-Worth Wage Adjustments And Female Employment In The State And Local Sector, Ronald G. Ehrenberg, Robert S. Smith

Ronald G. Ehrenberg

Our paper simulates the likely effects of a comparable-worth wage-adjustment policy in the state and local sector on female employment in the sector. The simulation is based on estimates of within-occupation male/female substitution and across-occupation occupational employment substitution that we obtain using data from the 1980 Census of Population.


Compliance With The Overtime Pay Provisions Of The Fair Labor Standards Act, Ronald G. Ehrenberg, Paul L. Schumann Aug 2012

Compliance With The Overtime Pay Provisions Of The Fair Labor Standards Act, Ronald G. Ehrenberg, Paul L. Schumann

Ronald G. Ehrenberg

[Excerpt] The evidence presented in this paper strongly suggests that non-compliance with the overtime pay provisions of the FLSA is a nontrivial problem. Our analyses of the May 1978 CPS data indicated that at least 9.6 percent of individuals who worked more than forty-one hours in the survey week and who we believe were subject to the FLSA's overtime provisions with certainty failed to receive any premium pay for overtime hours. Moreover, from our analyses of the partial coverage CPS sample, we inferred that over 20 percent of the people working overtime who were subject to the overtime ...


The Demand For State And Local Government Employees, Ronald G. Ehrenberg Jul 2012

The Demand For State And Local Government Employees, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The primary purpose of this paper is to present empirical estimates of the wage elasticities of demand for different categories of state and local government employees. The employment demand equations that are estimated are derived from a utility maximization model of state and local government behavior. After presenting this model in the first section, we next briefly discuss the data used in the study. The structural system of demand equations is then estimated using pooled time-series and cross-section information, with annual individual state data as the units of observation. A number of alternative estimation methods are used in the ...


Role Models In Education (Symposium Introduction), Ronald G. Ehrenberg Jul 2012

Role Models In Education (Symposium Introduction), Ronald G. Ehrenberg

Ronald G. Ehrenberg

It is our hope that by assembling these papers in one place, the Review will contribute to future policy debate on the importance of role models in education. Moreover, the papers' findings may have even broader importance. In many respects, the relationship between teachers and students can be viewed as analogous to the relationship between supervisors and employees. If the race, gender, and ethnicity of teachers "matter," so may the race, gender, and ethnicity of supervisors in the employment relationship. These papers thus suggest analogous types of research that could be profitably undertaken that relate to the employment relationship.


Officer Performance And Compensation In Local Building Trades Unions, Ronald G. Ehrenberg Jul 2012

Officer Performance And Compensation In Local Building Trades Unions, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] This paper presents estimates of the relationship between the performance and compensation of local building trades union leaders. A growing literature has revived the common-sense notion that organizations should structure the compensation of both their employees and their executives so as to encourage them to take actions consistent with the goals of the organizations. One way to minimize the probability that executives will take actions contrary to the organization's goals is to tie their compensation to measures of their organization's performance.


Absenteeism And The Overtime Decision, Ronald G. Ehrenberg Jul 2012

Absenteeism And The Overtime Decision, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Upon reading the congressional hearing on the Overtime Pay Penalty Act of 1964, one cannot fail to be impressed by the emphasis that management places on absenteeism as a primary cause of overtime. The argument given is basically quite simple: Large firms, it is claimed, attempt to account for absenteeism by hiring standby workers; however because of the stochastic nature of the absentee rate, it is impossible for them to have replacements always available. Hence overtime must be worked by existing employees in order to meet production schedules. One concludes from this argument that the randomness of absenteeism is ...


The Incentive Effects Of Tournaments Revisited: Evidence From The European Pga Tour, Ronald G. Ehrenberg, Michael L. Bognanno Jul 2012

The Incentive Effects Of Tournaments Revisited: Evidence From The European Pga Tour, Ronald G. Ehrenberg, Michael L. Bognanno

Ronald G. Ehrenberg

This analysis of data from the 1987 European Men's Professional Golf Association (PGA) Tour strongly supports the hypothesis that the level and structure of prizes in PGA tournaments influence players' performance. Specifically, players' performance appears to vary positively with both the total money prizes awarded in a tournament and the marginal return to effort in the final round of play (a value that varies among players largely depending on how the prize money is allocated among finishers of different ranks). The authors suggest that these results, together with the similar results of their earlier study of the 1984 U ...


Retirement System Characteristics And Compensating Wage Differentials In The Public Sector, Ronald G. Ehrenberg Jul 2012

Retirement System Characteristics And Compensating Wage Differentials In The Public Sector, Ronald G. Ehrenberg

Ronald G. Ehrenberg

This paper presents evidence that a trade-off exists between wages and certain characteristics of retirement systems in the public sector. Cross-section econometric estimates for uniformed municipal employees, based upon data from two national surveys of municipalities, suggest that, other things equal, an increase in the contribution made by uniformed employees to their retirement system leads to a compensating increase in their salaries, while retirement systems with more "generous" characteristics are associated to some extent with lower salaries. The estimates also indicate that the extent of retirement system underfunding is related to employers' and employees' perceptions of the probability that promised ...


Estimating The Narcotic Effect Of Public Sector Impasse Procedures, Richard J. Butler, Ronald G. Ehrenberg Jul 2012

Estimating The Narcotic Effect Of Public Sector Impasse Procedures, Richard J. Butler, Ronald G. Ehrenberg

Ronald G. Ehrenberg

This paper first describes in a relatively nontechnical fashion several econometric techniques that the authors believe should be useful to industrial relations researchers. Those techniques are then applied to an analysis of whether public sector impasse procedures create a "narcotic effect," that is, a tendency for the bargaining parties, once they use the procedures, to become increasingly reliant on them in future negotiations. The authors reanalyze data from Thomas Kochan and Joan Baderschneider’s study of the impasse experience of police and firefighters under New York State’s Taylor Law during the 1968-76 period and find that while a narcotic ...


Introduction: Do Compensation Policies Matter?, Ronald Ehrenberg Jul 2012

Introduction: Do Compensation Policies Matter?, Ronald Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The papers in this volume should give the reader a sense of the exciting empirical research that has recently taken place on compensation-related issues. As a set, these papers considerably expand our empirical evidence on the effects of compensation policies. Several papers show that executive compensation is structured in a way that at least implicitly ties executive compensation changes to measures of corporate performance, and —crucially—that doing so leads to improved corporate performance (Leonard, Murphy/Gibbons, Abowd). Others show that compensation systems that pay workers for performance, in the sense of providing explicit or implicit incentives for high ...


Do Teachers’ Race, Gender, And Ethnicity Matter? Evidence From The National Education Longitudinal Study Of 1988, Ronald G. Ehrenberg, Daniel D. Goldhaber, Dominic J. Brewer Jul 2012

Do Teachers’ Race, Gender, And Ethnicity Matter? Evidence From The National Education Longitudinal Study Of 1988, Ronald G. Ehrenberg, Daniel D. Goldhaber, Dominic J. Brewer

Ronald G. Ehrenberg

Using data from the National Educational Longitudinal Study of 1988 (NELS), the authors find that the match between teachers' race, gender, and ethnicity and those of their students had little association with how much the students learned, but in several instances it seems to have been a significant determinant of teachers' subjective evaluations of their students. For example, test scores of white female students in mathematics and science did not increase more rapidly when the teacher was a white woman than when the teacher was a white man, but white female teachers evaluated their white female students more highly than ...


The Underrepresentation Of Minority Faculty In Higher Education: Panel Discussion, John Brooks Slaughter, Ronald G. Ehrenberg, Eric Hanushek Jul 2012

The Underrepresentation Of Minority Faculty In Higher Education: Panel Discussion, John Brooks Slaughter, Ronald G. Ehrenberg, Eric Hanushek

Ronald G. Ehrenberg

[Excerpt] The 3 July 2002 issue of the Chronicle of Higher Education described the matter we are discussing today in these words: "Taken together. African-Americans and persons of Hispanic origin represent only 8 percent of full-time faculty nation-wide, and while 5 percent are African-American, half of them work at historically black institutions. The proportion of black faculty members at white institutions is 2.3 percent, virtually the same as it was 20 years ago." We are privileged to have the opportunity to explore this issue from two different perspectives. The first contends that unless major changes occur, the number of ...


The Impact Of The Overtime Premium On Employment And Hours In U.S. Industry, Ronald G. Ehrenberg Jul 2012

The Impact Of The Overtime Premium On Employment And Hours In U.S. Industry, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] This paper presents empirical estimates of the intra-industry cross-section relationship between annual overtime hours per man and the ratio of these quasi-fixed costs to the overtime wage rate. Estimates are also made of the impact of a change in the overtime premium on employment and hours; these estimates have implications for policymakers concerned with the wisdom of increasing the overtime premium as a method of job creation.


Determinants Of The Compensation And Mobility Of School Superintendents, Ronald G. Ehrenberg, Richard P. Chaykowski, Randy Ehrenberg Jul 2012

Determinants Of The Compensation And Mobility Of School Superintendents, Ronald G. Ehrenberg, Richard P. Chaykowski, Randy Ehrenberg

Ronald G. Ehrenberg

Analyzing 197-83 panel data from more than 700 New York State school districts, the authors find evidence that school superintendents were rewarded, both by higher salary increases and by enhanced opportunities to move to belter-paying jobs, for having low school tax rates and high educational achievement within their districts, relative to the values of those variables in comparable school districts in the state. The rewards were, however, quite small. The analysis also suggests that the superintendents themselves did not significantly influence either school tax rates or educational test scores in their districts.


Policy Decisions And Research In Economics And Industrial Relations: An Exchange Of Views: Comment, Ronald G. Ehrenberg, Daniel S. Hamermesh, George E. Johnson Jul 2012

Policy Decisions And Research In Economics And Industrial Relations: An Exchange Of Views: Comment, Ronald G. Ehrenberg, Daniel S. Hamermesh, George E. Johnson

Ronald G. Ehrenberg

[Excerpt] John Dunlop has presented what are certainly some of the most provocative remarks to appear in a scholarly journal in the labor field in many years. We find much to agree with in his remarks; however, we also find many areas where we feel he condemns research because of his overly optimistic expectations about its ability to contribute to the policy process, and other areas where he appears to be unaware that research in labor economics has already contributed fairly directly to policy decisions.


Involving Undergraduates In Research To Encourage Them To Undertake Ph.D. Study In Economics, Ronald G. Ehrenberg Jul 2012

Involving Undergraduates In Research To Encourage Them To Undertake Ph.D. Study In Economics, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Recent evidence suggests that the growing use of part-time and full-time non-tenure-track faculty nationwide adversely influences American college students’ graduation rates (Ehrenberg and Liang Zhang, 2005). I have become concerned that the increased usage of non-tenure track faculty members also likely adversely influences the propensity of undergraduate students to go on for Ph.D.s in economics for two reasons. First, many students enter college with the expressed intent of becoming doctors or lawyers, getting an MBA, or going on for advanced degrees in the sciences or humanities. However, with the exception perhaps of the small number of high-school ...


Unemployment Insurance, Duration Of Unemployment, And Subsequent Wage Gain, Ronald Ehrenberg, Ronald Oaxaca Jul 2012

Unemployment Insurance, Duration Of Unemployment, And Subsequent Wage Gain, Ronald Ehrenberg, Ronald Oaxaca

Ronald G. Ehrenberg

[Excerpt] In order to evaluate what the "optimal" level of UI benefits is, one must therefore first estimate the magnitude of the relationships between UI benefits levels and unemployed workers' durations of unemployment and post-unemployment wages. There have been several previous studies of the impact of UI benefits on duration of spells of unemployment, however none have been completely satisfactory methodologically. To our knowledge, there have been no previous studies of the system's impact on subsequent wage rates. We attempt to fill these gaps, utilizing data from the National Longitudinal Survey (NLS) to estimate both relationships. The plan of ...


Municipal Government Structure, Unionization, And The Wages Of Fire Fighters, Ronald G. Ehrenberg Jul 2012

Municipal Government Structure, Unionization, And The Wages Of Fire Fighters, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Also important to any analysis of labor costs in the public sector today is, of course, the effect of collective bargaining on wages. For reasons described in a recent article by Orley Ashenfelter, fire fighters provide an excellent test of union wage effects at the city level. This study will therefore use fire fighters as an example with which to assess and compare the effects on wages of both unionism and the structure of municipal government. This article is in many respects an extension of the excellent study by Asehenfelter, who examined the effect of the International Association of ...


Unions And Productivity In The Public Sector: A Study Of Municipal Libraries, Ronald G. Ehrenberg, Daniel R. Sherman, Joshua L. Schwarz Jul 2012

Unions And Productivity In The Public Sector: A Study Of Municipal Libraries, Ronald G. Ehrenberg, Daniel R. Sherman, Joshua L. Schwarz

Ronald G. Ehrenberg

This paper develops and illustrates the use of two methodologies to analyze the effect of unions on productivity in the public sector. Although the methodologies are applicable to a wide variety of public sector functions, the focus of the paper is on municipal libraries because of the availability of relevant data. The empirical analysis, which uses 1977 cross-section data on 260 libraries, suggests that collective bargaining coverage has not significantly affected productivity in municipal libraries.