Labor Economics Commons^™

Network Effects On Labor Contracts Of Internal Migrants In China- A Spatial Autoregressive Model, Badi H. Baltagi, Ying Deng, Xiangjun Ma

Center for Policy Research

This paper studies the fact that 37 percent of the internal migrants in China do not sign a labor contract with their employers, as revealed in a nationwide survey. These contract-free jobs pay lower hourly wages, require longer weekly work hours, and provide less insurance or on-the-job training than regular jobs with contracts. We find that the co-villager networks play an important role in a migrant’s decision on whether to accept such insecure and irregular jobs. By employing a comprehensive nationwide survey in 2011 in the spatial autoregressive logit model, we show that the common behavior of not signing contracts …

Veterans In Workforce Development: Participation And Labor Market Outcomes, Colleen Chrisinger

Upjohn Institute Working Papers

This paper compares the employment status and earnings of veterans and nonveterans following their receipt of public workforce development services in Washington State during the years 2002–2012. It also describes workforce program participation patterns for veterans and nonveterans to determine if veterans have equal or prioritized access to key programs, where prioritization is required by law. Based on tabulations and propensity score weighted regressions using administrative data, the results indicate slightly lower levels of participation by veterans than nonveterans in two major workforce programs (Wagner-Peyser and the Workforce Investment Act Adult program), and high participation in veteran-specific programs (Disabled Veterans …

Are Child Care Worker Wages Impacted By The Forces Of Supply And Demand? An Examination Of State-Level Data, Carolyn Arcand

Political Science

No abstract provided.

Nafta And The Gender Wage Gap, Shushanik Hakobyan, John Mclaren

Upjohn Institute Working Papers

Using U.S. Census data for 1990–2000, we estimate effects of NAFTA on U.S. wages, focusing on differences by gender. We find that NAFTA tariff reductions are associated with substantially reduced wage growth for married blue-collar women, much larger than the effect for other demographic groups. We investigate several possible explanations for this finding. It is not explained by differential sensitivity of female-dominated occupations to trade shocks, or by household bargaining that makes married female workers less able to change their industry of employment than other workers. We find some support for an explanation based on an equilibrium theory of selective …

How Did Employee Ownership Firms Weather The Last Two Recessions?: Employee Ownership, Employment Stability, And Firm Survival In The United States: 1999-2011, Fidan Ana Kurtulus, Douglas L. Kruse

Upjohn Press

Employee ownership firms offer workers the opportunity to own a stake in the firms where they work. This affords them the ability to share in profits and have a voice in firm-related decision-making. In this comprehensive new book, Kurtulus and Kruse provide new evidence on whether employee ownership firms are better equipped to survive recessions. In particular, they focus on broad-based employee ownership, which includes ownership at all levels in the firm’s hierarchy.

Worker Selection, Hiring, And Vacancies, Ismail Baydur

Research Collection School Of Economics

The ratio of hirings to vacancies in the U.S. has the following establishment level properties: (i) it steeply rises with employment growth rate; (ii) falls with establishment size; and (iii) rises with worker turnover rate. The standard Diamond-Mortensen Pissarides (DMP) matching model is not compatible with these observations. This paper augments selection of workers prior to hiring into a random matching model with multi-worker firms. In the calibrated model, worker selection accounts for about 30% of the variation in the hiring-vacancy ratio observed in the data. Compared to the standard model, the worker selection model has both qualitative and quantitative …

New Research On The Price Pass-Through Effects Of The Minimum Wage, Daniel Macdonald

Employment Research Newsletter

No abstract provided.

The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald, Eric Nilsson

Upjohn Institute Working Papers

We analyze the price pass-through effect of the minimum wage and use the results to provide insight into the competitive structure of low-wage labor markets. Using monthly price series, we find that the pass-through effect is entirely concentrated on the month that the minimum wage change goes into effect, and is much smaller than what the canonical literature has found. We then discuss why our results differ from that literature, noting the impact of series interpolation in generating most of the previous results. We then use the variation in the size of the minimum wage change to evaluate the competitive …

The Labor Market Consequences Of Regulating Similar Occupations: The Licensing Of Occupational And Physical Therapists, Jing Cai, Morris M. Kleiner

Upjohn Institute Working Papers

This study shows the influence of occupational licensing on two occupations that provide similar services: occupational therapists and physical therapists. Most of the tasks for these two occupations differ, but several jobs overlap, and individuals in both occupations could have legal jurisdiction over these tasks. We empirically examine how these two occupations interact with one another in the labor market on wage determination and employment. Unlike previous studies, our study examines two occupations that are female dominated both within the professions and among its leadership. Our results show that occupational licensing can raise the wages of members of both occupations, …

College Grads Earn Less If They Grew Up Poor, Timothy J. Bartik, Brad J. Hershbein

Reports

No abstract provided.

Domestic Outsourcing Reduces Wages And Contributes To Rising Inequality, Johannes Schmieder, Deborah Goldschmidt

Employment Research Newsletter

No abstract provided.

Mothers' Long-Term Employment Patterns, Alexandra Killewald, Xiaolin Zhuo

Upjohn Institute Working Papers

Previous research on maternal employment has disproportionately focused on married, college-educated mothers and examined either current employment status or postpartum return to employment. Following the life course perspective, we instead conceptualize maternal careers as long-term life course patterns. Using data from the NLSY79 and optimal matching, we document four common employment patterns of American mothers over the first 18 years of maternity. About two-thirds follow steady patterns, either full-time employment (38 percent) or steady nonemployment (24 percent). The rest experience “mixed” patterns: long-term part-time employment (20 percent), or a multiyear period of nonemployment following maternity, then a return to employment …

Testing The Heckscher-Ohlin-Vanek Theory With A Natural Experiment, Assaf Zimring

Upjohn Institute Working Papers

This paper uses the historical episode of the near-elimination of commuting from the West Bank into Israel, which caused a large and rapid expansion of the local labor force in the West Bank, to test the predictions of the Heckscher-Ohlin-Vanek (HOV) mode of trade. I use variation between districts in the West Bank to test these predictions, and find strong support for them: Wage changes were not correlated with the size of the shock to the district labor force (Factor Price Insensitivity); Districts that received larger influx of returning commuters shifted production more towards labor intensive industries (Rybczynski effect); And …

Military Retention Incentives: Evidence From The Air Force Selective Reenlistment Bonus, Justin Joffrion, Nathan Wozny

Upjohn Institute Working Papers

The limited lateral entry and rigid pay structure for U.S. military personnel present challenges in retaining skilled individuals who have attractive options in the civilian labor market. One tool the services use to address this challenge is the Selective Reenlistment Bonus (SRB), which offers eligible personnel with particular skills a substantial cash bonus upon reenlistment. However, the sequential nature of the bonus offer and reenlistment process limits the ability to adjust manpower quickly, raising interest in research that estimates the effect of the SRB on retention. While this literature has acknowledged challenges including potential endogeneity of bonus levels, attrition, and …

Trade Reform And Regional Dynamics: Evidence From 25 Years Of Brazilian Matched Employer-Employee Data, Rafael Dix-Carneiro, Brian K. Kovak

Upjohn Institute Working Papers

We empirically study the dynamics of labor market adjustment following the Brazilian trade reform of the 1990s. We use variation in industry-specific tariff cuts interacted with initial regional industry mix to measure trade-induced local labor demand shocks, and then examine regional and individual labor market responses to those one-time shocks over two decades. Contrary to conventional wisdom, we do not find that the impact of local shocks is dissipated over time through wage-equalizing migration. Instead, we find steadily growing effects of local shocks on regional formal sector wages and employment for 20 years. This finding can be rationalized in a …

Wage Distribution Impacts Of Higher Education Faculty Unionization, Charles S. Wassell Jr., David W. Hedrick, Steven E. Henson, John M. Krieg

Economics Faculty Scholarship

The literature on the effects of unions on the distribution of wages at the macroeconomic and inter-industry levels has given little attention to the effects at the firm level. At the same time, research on collective bargaining impacts in higher education has focused on the overall wage level rather than on the distribution of salaries. Using panel data on individual faculty members, we find faculty unionization to be associated with a significant flattening of the wage distribution across academic disciplines. This has implications for why faculty might choose to unionize, even in the absence of an overall wage premium.

What Does The Minimum Wage Do?, Dale Belman, Paul J. Wolfson

Upjohn Press

This book attempts to make sense of the research on the minimum wage that began in the early 1990s. The authors look at who is affected by the minimum wage, both directly and indirectly; which observable, measurable variables (e.g., wages, employment, school enrollment) the minimum wage influences; how long it takes for the variables to respond to the minimum wage and the size and desirability of the effect; why the minimum wage has the results it does (and not others); and the workers most likely to be affected by changes to the minimum wage.

Relook Link Between Low Wages And Foreign Workers, Hian Teck Hoon

Research Collection School Of Economics

He felt that the commonplace idea that the huge inflow of foreign workers in the past decade caused a stagnation and even decline in real wage earnings of Singaporean workers in the bottom half of the income distribution was flawed. He argued that real wage earnings of the median worker actually increased when the number of inflows of foreign workers was reaching its peak. Prof Hoon thus felt that Singapore must now find a means to gear its political and economic institutions to continue to embrace economic openness in the next half-century, in order to be able to deliver good …

Licensing Occupations: How Time And Regulatory Attainment Matter, Morris M. Kleiner

Employment Research Newsletter

No abstract provided.

Employment Relations And Wages: What Can We Learn From Subjective Assessments?, Marta Lachowska

Upjohn Institute Working Papers

This paper studies the link between hourly wages and workers’ subjective assessments of how easy it would be to find another job as good as the present one, and how easy it would be for an employer to replace an employee. First, using high-quality data, I study the correlates of these two assessments. Second, I study whether respondents who report better outside opportunities and respondents who think they are difficult to replace receive higher wages. The results appear to be consistent with predictions of at least three theoretical frameworks: human capital theory, search theory, and a “locus of control” model.

Do Minimum Wage Laws Affect People Who Are Not Covered? Evidence From Documented And Undocumented, Hourly And Piece Rate Workers In U.S. Agriculture, Anita Alves Pena

Upjohn Institute Working Papers

While a stated goal of minimum wage increases is to benefit low-income workers, some employers are not obligated to provide at least minimum wages to all employees. U.S. farm employers comprise one of these groups. Employees of large farms and H2-A workers (temporary nonimmigrant workers lawfully admitted to perform temporary or seasonal agricultural services) are protected by minimum wage legislation, while other migrant workers (especially those who are paid piece rate) are exempt. Furthermore, U.S. agriculture is characterized by a large percentage of illegal migrants, and workers who are illegal may or may not receive wages above minimum levels. This …

Contending Theories Of Wage Determination: An Intersectoral Analysis Of Real Wage Growth In The U.S. Economy, James Sheffield

Pursuit - The Journal of Undergraduate Research at The University of Tennessee

In recent years, social movements and popular media have drawn attention to the issue of income inequality in the United States. This growing inequality in the distribution of income is often seen as a function of stagnating wage growth in the U.S. economy. There appears to be a fairly broad consensus among commentators that wage growth for many workers in the U.S. has stagnated in recent decades, though the precise causes and implications of this trend are a matter of considerable dispute. Some see it as a function of stagnant productivity growth, while others attribute it to the declining strength …

Stages Of Occupational Regulation: Analysis Of Case Studies, Morris M. Kleiner

Upjohn Press

Kleiner examines occupations that are at various stages of regulation to determine to what extent regulation has influenced the individuals in the occupations, consumers, and related occupational practitioners.

Pre- And Post- Wage Differences Of Trade Adjustment Assistance Job Training Participants In Arkansas, Kimberley Hall Gordon

Graduate Theses and Dissertations

A number of costs are associated with the implementation of trade agreements not the least of which is the cost to the American workforce. The information age ushered in an era of globalization unlike anything the world economy had experienced before. As countries raced forward to dominate emerging markets and grow market share, millions of American workers were left in the wake. A remedy to the plight of the dislocated worker was found in trade adjustment assistance, specifically in job training benefits.

This study examined the wage differences experienced by Trade Adjustment Assistance (TAA) job training participants served through the …

Neoliberalism, Piven And Cloward's Bargaining Theory, And Wages In The United States, 1965-2006, Thomas W. Volscho

The Journal of Sociology & Social Welfare

The political economy of the United States during the last thirty years has been described as neoliberal. Part of the neoliberal turn involves reducing or eliminating income support programs such as AFDC/TANF, waging war against organized labor, and increasingly conservative (i.e., neoliberal) public policies. Following an analysis by Lewis (2001) which showed that wages increased in response to higher average monthly AFDC payments, I update and expand this test of Piven and Cloward's bargaining power theory of wages by looking at other factors which may influence worker bargaining power: unions, interest rates, policy liberalism, and economic growth. I use time-series …

Abortion, Income, Wantedness: Evidence From The American Community Survey, Francisco Arceo

All Theses

This paper serves two purposes: (1) to find the effect of the legalization of abortion on future wages and (2) to test Donohue-Levitt's 'Wantedness Hypothesis' (i.e., that relatively more wanted children have superior economic outcomes). Non-parametric evidence suggests that the legalization of abortion increased the annual salary and wage and salary income for people born before 1973 in a state with legal abortion. The OLS specifications suggest that once state surveyed and state of birth effects are included into the models the effect is negative. Once macroeconomic and other unobservable effects are controlled for, I find no evidence of an …

Occupational Licensing: Protecting The Public Interest Or Protectionism?, Morris M. Kleiner

Upjohn Institute Policy Papers

The issue of the government regulation of occupations involves the role of government in reconciling the special interests of the practitioners with those of society. The strictest form of occupational regulation is occupational licensing which is extensive and growing. In 2008, nearly 30 percent of the workforce was required to hold a license up from around 10 percent in 1970. There are potential job loss implications in the growth of occupational licensing for the labor market and the economy. An alternative form of regulation, the certification of occupations, which does not impose a "closed shop" on entry and mobility, may …

What Works In Job Creation And Economic Development, Timothy J. Bartik

Presentations

No abstract provided.

Net Impact Evaluation Of Moving Men And Women To Economic Independence In Michigan, Within Reach Program: Year 1 And Year 2 Cohorts, Randall W. Eberts, Jason M. Preuss

Presentations

The authors completed a net impact evaluation of the “Within Reach” component of the Goodwill Industries of Greater Detroit program (Moving Men and Women to Economic Independence). This program provided employment-related support services to disadvantaged adults as coordinated by WorkFirst. The net impact evaluation estimated the contribution of the program to the employment outcomes of the participants. It constructed comparison groups of individuals who were similar to the program participants, but who did not participate in the program. The net impact analysis focused on three employment-related outcomes: finding a job, retaining a job (workforce attachment), and earnings.

Immigrants And Their International Money Flows, Susan Pozo Editor

Upjohn Press

This book consists of a series of studies on the topic of international migration with an emphasis on workers' remittances. Chapters cover the impact of remittances on economic development and the interplay of immigration policies with human capital acquisition and labor markets in out-migration areas.