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Full-Text Articles in Social and Behavioral Sciences

Estimating Wage-Fringe Trade-Offs: Some Data Problems, Robert Smith, Ronald G. Ehrenberg Aug 2012

Estimating Wage-Fringe Trade-Offs: Some Data Problems, Robert Smith, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] This paper represents an inquiry into some of the data related difficulties inherent in estimating wage-fringe trade-offs, and it explores the usefulness of a particular source of data in meeting these difficulties.


Workers’ Compensation, Wages, And The Risk Of Injury, Ronald G. Ehrenberg Aug 2012

Workers’ Compensation, Wages, And The Risk Of Injury, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] In many respects the structures of the workers' compensation and unemployment insurance systems are similar. Each is actually a system of individual state systems. Both are financed by a payroll tax that is imperfectly experience rated. Both provide insurance against an adverse consequence (work injury or unemployment) that leads to time away from work; the incidence and duration of these events are at least partially determined by both employer and employee behavior. Both systems provide, at least for temporary events, a structure of benefits that ties compensation to a worker's previous earnings. Because of these similarities, it is not …


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 …


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 …


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 …


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 our …


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 …