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Full-Text Articles in Social and Behavioral Sciences
Cost-Of-Living Adjustment Clauses In Union Contracts: A Summary Of Results, Ronald G. Ehrenberg, Leif Danziger, Gee San
Cost-Of-Living Adjustment Clauses In Union Contracts: A Summary Of Results, Ronald G. Ehrenberg, Leif Danziger, Gee San
Ronald G. Ehrenberg
Our paper provides an explanation why cost-of-living adjustment (COLA) provisions and their characteristics vary widely across U.S. industries. We develop models of optimal risk sharing between a firm and union to investigate the determinants of a number of contract characteristics. These include the presence and degree of wage indexing, the magnitude of deferred noncontingent wage increases, contract duration, and the trade-off between temporary layoffs and wage indexing. Preliminary empirical tests of some of the implications of the model are described. One key finding is that the level of unemployment insurance benefits appears to influence the level of layoffs and the …
Unemployment Insurance, Duration Of Unemployment, And Subsequent Wage Gain, Ronald Ehrenberg, Ronald Oaxaca
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 …