Social and Behavioral Sciences Commons^™

Testimony Of John M. Abowd Before The House Committee On Energy And Commerce, Subcommitte On Commerce, Manufacturing And Trade, United States House Of Representatives, John Abowd, Lars Vilhuber

Lars Vilhuber

We focus attention on gross flows in the labor market and their role in economic reallocation. Economists distinguish between movements of individuals (gross worker flows) and those associated with businesses (gross job flows). The gross worker flows are accessions (hiring and recalls) and separations (quits, layoffs, retirements, and firings). The gross job flows are creations (increases in the employment of a given business establishment) and destructions (decreases in employment of a given business establishments). In our testimony, we discuss the different flows and the regional variation therein over the last recession.

Presentation: Did The Housing Price Bubble Clobber Local Labor Market Job And Worker Flows When It Burst?, John Abowd, Lars Vilhuber

Lars Vilhuber

We integrate local labor market data on worker flows, job flows, employment levels, and earnings with MSA-level data on housing prices and local area unemployment, to study the local labor market dynamics associated with the U.S. housing price bubble of the late 2000s. We proceed to study the magnitude and timing of the relation between the changes in local housing prices and local worker and job flows, and local labor market earnings.In addition to the unique contribution of using both local labor and housing market data, the paper also considers the contributions of the aggregate movements in the worker and …

The Quality Of Jobs Created By Entrepreneurs, Adam Seth Litwin, Philip Phan

Adam Seth Litwin

Few dare to challenge the conventional wisdom that small business is the engine of job creation. Indeed, in the United States, the image of the small business owner left largely unfettered to create novel products and services sits on the same cultural plane as baseball and apple pie, and one would be hard-pressed to find a policymaker who would openly question the wisdom that most new jobs arise either directly or indirectly from these small businesses. This near religious belief in the small business owner as job creator yields a steady stream of policies offering tax relief to small businesses, …

Diferencias Territoriales En El Retorno A La Educación En Chile: Evidencia Para Las Regiones Del Biobío Y Metropolitana, Genaro Candia, Andres Acuña

Andrés A. Acuña

An Economic Development Strategy For Charlevoix County - A Feasibility Study, Michelle Miller-Adams

Michelle Miller-Adams

Staff of the Upjohn Institute will work with the Charlevoix Community Foundation to study the feasibility of a collaborative economic development strategy for the region. Through stakeholder interviews and a community convening, Institute staff will examine the networks currently in place among leaders in the county's three communities, present to stakeholders the findings of this network analysis along with regional data, and facilitate a community conversation about possible collaborative strategies designed to address the challenges facing Charlevoix County.

Analysis Of Washington High Tech Tax Credit, Kevin Hollenbeck, Timothy Bartik

Timothy J. Bartik

The State of Washington has a credit provision in its Business & Operations tax intended to incentivize research and development expenditures in high tech industries. The indirect goal of the incentive is to generate employment in the state. Upjohn Institute staff members analyzed administrative data from the state to estimate the employment and earnings generating effect of the R & D credit. The administrative data included tax return information merged with quarterly earnings and employment records. Potential endogeneity of the credits and employment were controlled through instrumental variables.

Higher Education, The Health Care Industry, And Metropolitan Regional Economic Development, Timothy Bartik, George Erickcek

Timothy J. Bartik

This project examined the effects of expansions in higher educational institutions and the medical service industry, "eds and meds," on the economic development of a metropolitan area. The authors provided quantitative evidence of the magnitude of economic effects of higher education and medical service industries that occur through the mechanism of providing some export-base demand stimulus to a metropolitan economy. Quantitative evidence on how much higher education institutions can boost a metropolitan economy through increasing the educational attainment of local residents was also included. Other mechanisms by which these two industries may boost a metropolitan economy include increasing local amenities, …

Attracting Capital To Distressed Areas, Timothy Bartik

Timothy J. Bartik

Researchers addressed the topic of attracting capital to distressed urban areas and focused on the extent to which this problem can be solved by increasing labor demand for residents of distressed areas through attracting private investment. This increase in labor demand allows an increase in employment per capita and earnings per capita in residents' home areas. The report analyzed the type and scale of federal policy options that led to the attraction of substantial capital to distressed areas.

Identifying Persistent Regional Economic Distress Due To The Great Recession, Timothy Bartik

Timothy J. Bartik

Upjohn Institute researchers will estimate the extent to which recessions have a persistent effect on per capita income in the most severely affected local areas. If persistent effects are identified, the project will explore which indicators will best identify the local areas that suffer from persistently lower per capita income. Prolonged local distress may rationalize federal policy to assist residents in the identified regions, either individually or regionally. Any such federal policy needs reliable indicators of which regions are most likely to suffer persistent economic distress. Empirical work will be done in two stages: 1) estimate the persistent effects on …

Pew Project, Timothy Bartik

Timothy J. Bartik

This project has three components. Component 1 is a model for use by state governments in evaluating the cost-effectiveness of economic development incentives. This model will be designed to be implemented via a spreadsheet, and will have supporting documentation explaining its research basis. Component 2 is estimates of marginal tax rates for different types of businesses in various states and cities. These marginal tax rates will incorporate both regular provisions of the tax code, as well as various economic development incentives. Component 3 is estimates of detailed industry employment at the county level for all U.S. counties. This will be …

The Impact Of State And Local Taxes On Growth Using Improved Tax Measures, Timothy Bartik

Timothy J. Bartik

In collaboration with Alan Peters and Peter Fisher of the University of Iowa, this research project provided important new evidence on a long-standing controversy in academic and public policy circles: whether tax incentives are a cost-effective means of stimulating state economic growth. The research used a superior measure of the crucial explanatory variable—state and local taxes on business—and tested the sensitivity of the results to the kind of tax measure used. This project refocused scholarly debate on replicable findings about the impact of state and local business taxes on economic growth. The results were disseminated to the economic development policy …

Employment Impacts Of Environmental Regulation, Timothy Bartik

Timothy J. Bartik

This research paper addressed the issue of evaluating and improving potential links between employment impacts of environmental regulation and benefit-cost analysis. The research examined labor market conditions that would justify relaxing the full employment assumption within benefit-cost analysis. This information may be influential to the opportunity cost of unemployed labor and addresses the measurement of influential variables. The research was presented at two workshops in Washington, D.C.: a “planning” workshop in Spring 2012 and a “presentation” workshop in Fall 2012.

A Database For Measuring Industrial And Occupational Strengths And Potential In Michigan’S Economic Regions, Timothy Bartik, George Erickcek

Timothy J. Bartik

Researchers developed a database that included analysis of each of Michigan's economic region's industrial strengths and potential strengths in different "export-base industries." The MERIOD (Michigan Economic Region Industrial and Occupational Development) database surveyed specialized industries and high-growth industries in each of the fifteen metro areas. It identified export-based industries to the six-digit NAICS level and explored recent growth trends in these industries in both the Michigan metro area and at the national level. These data and analyses provided MEDC (Michigan Economic Development Corporation) and regional economic developers in Michigan with insight into potential industry targets for better informed policy decisions.

Michigan Competitiveness For Economic Development Report, Timothy Bartik, George Erickcek

Timothy J. Bartik

Institute staff evaluated Michigan's competitiveness for economic development compared to the nation and nearby states. The report analyzed several aspects of Michigan's competitiveness including: tax competitiveness, Michigan's growth and industry mix, Michigan's competitiveness in human capital, and the competitiveness of Michigan's metropolitan areas. The report also included an executive summary targeted to a broader audience

Independent Audit Of The State's Evaluation Of The Training Benefits Program, Kevin Hollenbeck

Kevin Hollenbeck

Washington's Joint Legislative Audit and Review Committee (JLARC) has been charged by the state legislature to oversee the state's Employment Security Department's evaluation of the Training Benefits program, which is a program to encourage recipients of unemployment compensation to enroll in formal education and training. Staff members from the Upjohn Institute will consult with the individuals conducting the evaluation in the initial design phase of the ESD evaluation, and then will track progress of it, and finally will audit the results.

Evaluation Of Battle Creek Careers, Kevin Hollenbeck

Kevin Hollenbeck

Battle Creek CAREERS is an employer resource network (ERN) that operated between 2008 and 2010. This network created a consortium of businesses that provided job retention services, work supports, and training opportunities for entry-level employees, many of whom were receiving public assistance. Upjohn Institute staff members prepared an assessment of this program's accomplishments during that time period. The report presented conclusions about the life cycle experience of the Battle Creek CAREERS program including its initiation, implementation, operation, and wind-down.

Unemployment Insurance Usage By Disabled Individuals, Kevin Hollenbeck

Kevin Hollenbeck

Using administrative data from the State of Washington, the study cross-walked Unemployment Insurance (UI) benefit data with information on enrollment in other programs that may have identified participants as having a disability, such as vocational rehabilitation or Workforce Investment Act (WIA) programs in which individuals self-reported disability status. By cross-walking the data to Vocational Rehabilitation and WIA, the profile that was developed provided a sense of what portion of a state’s long-term unemployed may have had a disability.

Evaluation Of Massachusetts Workforce Training Fund, Kevin Hollenbeck

Kevin Hollenbeck

The Massachusetts Workforce Training Fund (WTF), funded by employer contribution (surcharge) of 0.075% of its unemployment insurance taxable wage base, provides training grants and technical assistance to organizations located in the state. The purposes of these activities are to impart or upgrade knowledge and skills of Massachusetts’ workers so that they and their employing firms can compete in the world economy. This study provided 10 case studies of firms who have received a training grant. The case studies combined qualitative and quantitative data analytical techniques to provide evidence about the net impact and return on investment of the training grant …

Workforce Development Programs In Indiana: A Return On Investment Study, Kevin Hollenbeck

Kevin Hollenbeck

Institute staff conducted a study that estimated the net impacts of workforce development programs in Indiana on employment, earnings, and receipt of unemployment compensation. The study estimated the return on investment of the workforce development programs to individual participants and to the state. Researchers deployed a quasi-experimental approach. Individuals served by programs were statistically matched to individuals who encountered the Job Service during the same period. The statistical match controlled for demographic characteristics and prior labor market experience. Outcome variables including earnings, employment, and unemployment compensation came from administrative data.

Employer Incentives To Participate In An Employer Resource Network, Kevin Hollenbeck

Kevin Hollenbeck

Employer Resource Networks (ERNs) are self-funded private sector partnerships intended to facilitate the retention and productivity of employees. The partnerships employ or subcontract for a social service agency case manager who will help employees manage day-to-day emergency situations by referring them to appropriate agencies, by providing small amounts of emergency funding, by helping them traverse the public assistance system, or by other means. In some cases, ERNs provide general training. In this project, Upjohn Institute staff members interviewed employers who are participating in an ERN and developed and disseminated a Policy Brief intended mainly to inform other employers about the …

An Event Study Of Ui Benefit Cuts: Evidence From North Carolina, Brad Hershbein, Christopher O'Leary

Brad J. Hershbein

On July 1, 2013, North Carolina cut the maximum duration of UI benefits from 63 weeks (or 99 with EUC) to 19 weeks and the maximum weekly payout from $535 to $350. As of January 1, 2014, the EUC program ended nationwide and several states have cut maximum benefits to below 26 weeks. While several newspaper articles and blogs have offered descriptive evidence of the results of North Carolina’s policy change, there has been no rigorous and systematic analysis. Using synthetic control methods pioneered by Abadie, Diamond, and Hainmueller, and CPS data, we will investigate the impact of the UI …

Your Friends And Neighbors: Localized Economic Development And Criminal Activity, Matthew Freedman, Emily Owens

Matthew Freedman

We exploit a sudden shock to demand for a subset of low-wage workers generated by the 2005 Base Realignment and Closure (BRAC) program in San Antonio, Texas to identify the effects of localized economic development on crime. We use a difference-in-difference methodology that takes advantage of variation in BRAC’s impact over time and across neighborhoods. We find that appropriative criminal behavior increases in neighborhoods where a fraction of residents experienced increases in earnings. This effect is driven by residents who were unlikely to be BRAC beneficiaries, implying that criminal opportunities are important in explaining patterns of crime.

Forthcoming in the …

The Plight Of The Kimberley: Jobs Or Culture?, Stuart Murray

Stuart Murray

No abstract provided.

Do Higher Salaries Lower Physician Migration?, Edward Okeke

Edward Okeke

It is believed that low wages are an important reason why doctors and nurses in developing countries migrate, and this has led to a call for higher wages for health professionals in developing countries. In this paper, we provide some of the first estimates of the impact of raising health workers’ salaries on migration. Using aggregate panel data on the stock of foreign doctors in 16 OECD countries, we explore the effect of a wage increase programme in Ghana on physician migration. We find evidence that 6 years after the implementation of this programme, the foreign stock of Ghanaian doctors …

Expert Advisory Panel On Occupational Health And Safety, H. Hunt

H. Allan Hunt

This project developed a set of recommendations to improve occupational health and safety in Ontario, Canada. The project addressed the roles and responsibilities of the occupational health and safety system partners and the role of the joint health and safety committees. It evaluated the information and data collection and exchange, the use of technology, and incentives in the system. Supply chain and subcontracting issues were also discussed.

Extension Of Washington Pension System Review, H. Hunt

H. Allan Hunt

This project extended the work performed under a previous project that addressed the incidence of total and permanent disability pensions in the Washington workers’ compensation system. Researchers provided a literature review of studies that analyze worker outcomes after settlement agreements and a review of benefit structures in other disability systems that may offer ways to bridge the gap between permanent total and permanent partial disability awards in Washington.

Benefit Equity, Adequacy And Efficacy For Serious Injuries: An Empirical Analysis Of Workers’ Compensation Programs, H. Hunt

H. Allan Hunt

The project examined workers compensation benefits in a sample of states, using wage-loss methodology to address the equity of compensation and the efficacy of different ways to determine compensation.

British Columbia Workers' Compensation Core Services Review Revisited, H. Hunt

H. Allan Hunt

This short-term project revisited the issues raised in the Service Delivery Core Review Report prepared for the Ministry of Skills Development and Labour in the Government of British Columbia, Canada in 2002. This project evaluated the administration of workers' compensation in British Columbia and made recommendations for change. WorkSafe BC requested an assessment of progress made since the 2002 after the goals and recommendations were implemented.

Counterpoint: Reply To Orrenius And Zavodny, Vernon Briggs

Vernon M Briggs Jr

[Excerpt] On the fundamental conclusions, the positions argued by Pia Orrenius and Madeline Zavodny and my own are in essential agreement. The immigration policy of the United States is in dire need of changes. The public concern is, in their words, “driven by the increase in immigration in recent years, particularly of unauthorized immigration.” Our mutual worries pertain to the disproportionately adverse impacts of the immigrant inflow on the nation’s low-skilled work force and the high fiscal burden borne by local communities and states with growing immigrant populations. The differences between the two papers center on the approaches taken to …

The Elusive Goal: The Quest For A Credible Immigration Policy, Vernon Briggs

Vernon M Briggs Jr

[Excerpt] The starting point for all immigration reform efforts must be making the immigration system enforceable. Nothing else makes sense. Otherwise, immigration policy is on a squirrel wheel going nowhere. Illegal immigrants will keep coming in defiance of its terms.