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Full-Text Articles in Social and Behavioral Sciences

Congressional Testimony On The Effectiveness Of Trade Adjustment Assistance And Suggestions For Improving The Program, Louis S. Jacobson Aug 1991

Congressional Testimony On The Effectiveness Of Trade Adjustment Assistance And Suggestions For Improving The Program, Louis S. Jacobson

Upjohn Institute Working Papers

In this testimony, I will sketch key findings from research that I conducted with others, bearing on the justification and effectiveness of trade adjustment assistance. Most economists agree that protecting workers from the negative consequences of the North American Free Trade Agreement is appropriate, since we believe that a measure is unambiguously good only when some benefit, but no one is hurt. ... Thus, my central policy conclusion is that the combination of UI and TAA does a good job in protecting the majority of trade impacted workers. But available funds would be better spent by helping dislocated workers find …


The Effects Of Metropolitan Job Growth On The Size Distribution Of Family Income, Timothy J. Bartik Mar 1991

The Effects Of Metropolitan Job Growth On The Size Distribution Of Family Income, Timothy J. Bartik

Upjohn Institute Working Papers

This paper examines how a metropolitan area's job growth affects its income distribution. The research uses annual Current Population Survey data on the income distribution in different metropolitan areas from 1979 through 1988. Faster metropolitan job growth increases real family income in the lowest income quintile by a significantly greater percentage than for the average family. Metropolitan job growth also increases the value of property owned by upper income quintiles, but property value effects are not large enough to offset the progressive effects of growth on labor income. Simulations indicate that economic development programs to increase metropolitan job growth will …


Congressional Testimony On The Effectiveness Of The Employment Service In Aiding Ui Claimants, Louis S. Jacobson Feb 1991

Congressional Testimony On The Effectiveness Of The Employment Service In Aiding Ui Claimants, Louis S. Jacobson

Upjohn Institute Working Papers

This testimony describes the results of a study of the Employment Service (ES) conducted by Dr. Jacobson and Prof. Arnold Katz of the University of Pittsburgh using data on over 100,000 individuals who registered with the Pennsylvania ES between 1978 and 1987, and an even larger sample of non-registrants. One major finding is that much of the decline in the ES's performance over the past thirty years can be explained by changes in: funding, characteristics of registrants, and characteristics of job vacancies. Thus, we concluded that criticism of the ES often ignores changes in crucial factors outside of the ES's …


The Employment And Earnings Impacts Of The Targeted Jobs Tax Credit, Kevin M. Hollenbeck, Richard J. Willke Feb 1991

The Employment And Earnings Impacts Of The Targeted Jobs Tax Credit, Kevin M. Hollenbeck, Richard J. Willke

Upjohn Institute Working Papers

The Targeted Jobs Tax Credit (TJTC) is intended to stimulate the employment of individuals who are members of certain groups of the labor force by providing a wage subsidy (in the form of a tax credit) to employers of recently-hired eligible workers. This intervention into the labor market has direct and indirect earnings and employment consequences for both eligible and ineligible individuals. The paper evaluates the impacts of TJTC by using a treatment and comparison group methodology. Corrections for nonrandom selection are undertaken. The primary sources of data are state quarterly wage record data from the Unemployment Insurance system and …


Efficient Bargains In The Context Of Recent Labor Market Experience And Policy, Robert A. Hart, Thomas Moutos Sep 1990

Efficient Bargains In The Context Of Recent Labor Market Experience And Policy, Robert A. Hart, Thomas Moutos

Upjohn Institute Working Papers

In Europe in recent times, bargaining between a leading nationally-based industrial union and a representative group of employers over the issues of employment, wages and working time has proved to be influential in a much wider industrial context. Adopting a generalized Nash bargaining approach, this paper considers the possible effects on such "key" bargains of several prominent labor market events and policies experienced since the middle 1970s. These include the impacts of OPEC supply shocks, changes in union power, greater emphasis on payroll taxes as well as growing government economic orthodoxy as expressed through the goal of a balanced budget.


Maximum Score Estimates Of The Determinants Of Residential Mobility: Implications For The Value Of Residential Attachment And Neighborhood Amenities, Timothy J. Bartik, J. S. Butler, Jin-Tan Liu Aug 1990

Maximum Score Estimates Of The Determinants Of Residential Mobility: Implications For The Value Of Residential Attachment And Neighborhood Amenities, Timothy J. Bartik, J. S. Butler, Jin-Tan Liu

Upjohn Institute Working Papers

This paper examines the determinants of the decision of low-income renters to move out of their current dwelling. Maximum score estimation is shown to be superior to ordinary discrete choice estimation techniques (probit, logit) for this problem, and for similar discrete choices that require revering a previously optimal decision. The estimation reveals psychological costs from moving for typical low income renters of at least 8% of their income ; these costs are even higher for older, longer tenure, or minority households. Policies that displace low income renters will have large social costs. In addition, the estimation results are used to …


The Displacement Effect Of Reemployment Bonus Programs, Carl Davidson, Stephen A. Woodbury Jul 1990

The Displacement Effect Of Reemployment Bonus Programs, Carl Davidson, Stephen A. Woodbury

Upjohn Institute Working Papers

This paper explores whether reemployment bonuses--cash payments made to insured unemployed workers who find reemployment quickly--have the unintended consequence of displacing workers who are not covered by the bonus program. We develop two partial equilibrium matching models of the labor market, patterned after the work of Diamond (1982), Mortensen (1982), and Pissarides (1984). In the first model, wages are assumed exogenous, in the second endogenous. In both, we find that the direct substitution of covered for uncovered workers (which constitutes displacement) is countered by two offsetting effects : a gross job creation effect, which results from the increased search effort …


Dislocated Worker Human Capital Depreciation And Recovery, Kevin M. Hollenbeck May 1990

Dislocated Worker Human Capital Depreciation And Recovery, Kevin M. Hollenbeck

Upjohn Institute Working Papers

Previous studies have estimated the "human capital depreciation" of women re-entering the work force after voluntary, lengthy interruptions. Those studies have found reduced real wages and furthermore the decrease is positively related to the length of the interruption. Upon re-entry, however, real wages grow rapidly as human capital is restored. This paper develops a model of the wage histories of dislocated workers. Similar to labor force re-entrants, those dislocated workers who become re-employed would experience wages below their final wage prior to dislocation and the decrease should be associated with the length of dislocation. However, the model suggests that since …


An Econometric Analysis Of Unemployment Insurance Benefits Adequacy, Christopher J. O'Leary Jan 1990

An Econometric Analysis Of Unemployment Insurance Benefits Adequacy, Christopher J. O'Leary

Upjohn Institute Working Papers

Traditionally studies of unemployment insurance benefit adequacy have relied on an expenditure survey. This is expensive, yields small samples, and presumes that the analyst knows which categories of expenditure are necessary. This paper uses an existing large data set, and an agnostic approach. Labor supply are equations are estimated on PSID data using an estimator which accounts for rationing in the labor market. The results are used to compute labor market constraint compensation for comparison to payments under UI systems of representative states. The results suggest that payments which meet the accepted standard of adequacy would usually slightly overcompensate individuals.