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Articles 121 - 150 of 179
Full-Text Articles in Labor Economics
Genes, Education, And Labor Market Outcomes: Evidence From The Health And Retirement Study, Nicholas W. Papageorge, Kevin Thom
Genes, Education, And Labor Market Outcomes: Evidence From The Health And Retirement Study, Nicholas W. Papageorge, Kevin Thom
Upjohn Institute Working Papers
Recent advances have led to the discovery of specific genetic variants that predict educational attainment. We study how these variants, summarized as a genetic score variable, are associated with human capital accumulation and labor market outcomes in the Health and Retirement Study (HRS). We demonstrate that the same genetic score that predicts education is also associated with higher wages, but only among individuals with a college education. Moreover, the genetic gradient in wages has grown in more recent birth cohorts, consistent with interactions between technological change and labor market ability. We also show that individuals who grew up in economically …
Nafta And The Gender Wage Gap, Shushanik Hakobyan, John Mclaren
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 …
Wage Shocks And The Technological Substitution Of Low-Wage Jobs, Daniel Aaronson, Brian Phelan
Wage Shocks And The Technological Substitution Of Low-Wage Jobs, Daniel Aaronson, Brian Phelan
Upjohn Institute Working Papers
We extend the task-based empirical framework used in the job polarization literature to analyze the susceptibility of low-wage employment to technological substitution. We find that increases in the cost of low-wage labor, via minimum wage hikes, lead to relative employment declines at cognitively routine occupations but not manually-routine or non-routine low-wage occupations. This suggests that low-wage routine cognitive tasks are susceptible to technological substitution. While the short-run employment consequence of this reshuffling on individual workers is economically small, due to concurrent employment growth in other low-wage jobs, workers previously employed in cognitively routine jobs experience relative wage losses.
Who Wins In An Energy Boom? Evidence From Wage Rates And Housing, Grant D. Jacobsen
Who Wins In An Energy Boom? Evidence From Wage Rates And Housing, Grant D. Jacobsen
Upjohn Institute Working Papers
This paper presents evidence on the distributional effects of energy extraction by examining the recent U.S. energy boom. The boom increased local wage rates in almost every major occupational category. The increase occurred regardless of whether the occupation experienced a corresponding change in employment, suggesting a more competitive labor market that benefited local workers. Local housing values and rental prices both increased, thereby benefiting landowners. For renters, the increase in prices was completely offset by a contemporaneous increase in income. The results indicate that bans on drilling have negative monetary consequences for a large share of local residents.
New Research On The Price Pass-Through Effects Of The Minimum Wage, Daniel Macdonald
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
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
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
College Grads Earn Less If They Grew Up Poor, Timothy J. Bartik, Brad J. Hershbein
Reports
No abstract provided.
Are There Returns To Experience At Low-Skill Jobs? Evidence From Single Mothers In The United States Over The 1990s, Adam Looney, Dayanand S. Manoli
Are There Returns To Experience At Low-Skill Jobs? Evidence From Single Mothers In The United States Over The 1990s, Adam Looney, Dayanand S. Manoli
Upjohn Institute Working Papers
Policy changes in the United States in the 1990s resulted in sizable increases in employment rates of single mothers. We show that this increase led to a large and abrupt increase in work experience for single mothers with young children. We then examine the economic return to this increase in experience for affected single mothers. Despite the increases in experience, single mothers’ real wages and employment have remained relatively unchanged. The empirical analysis suggests that an additional year of experience increases single mothers’ wage rates by less than 2 percent, a percentage lower than previous estimates in the literature.
Domestic Outsourcing Reduces Wages And Contributes To Rising Inequality, Johannes Schmieder, Deborah Goldschmidt
Domestic Outsourcing Reduces Wages And Contributes To Rising Inequality, Johannes Schmieder, Deborah Goldschmidt
Employment Research Newsletter
No abstract provided.
Estimating Hispanic-White Wage Gaps Among Women: The Importance Of Controlling For Cost Of Living, Peter Mchenry, Melissa Mcinerney
Estimating Hispanic-White Wage Gaps Among Women: The Importance Of Controlling For Cost Of Living, Peter Mchenry, Melissa Mcinerney
Upjohn Institute Working Papers
Despite concern regarding labor market discrimination against Hispanics, previously published estimates show that Hispanic women earn higher hourly wages than white women with similar observable characteristics. This estimated wage premium is likely biased upwards because of the omission of an important control variable: cost of living. We show that Hispanic women live in locations (e.g., cities) with higher costs of living than whites. After we account for cost of living, the estimated Hispanic-white wage differential for non-immigrant women falls by approximately two-thirds. As a result, we find no statistically significant difference in wages between Hispanic and white women in the …
The Pros And Cons Of Sick Pay Schemes: Testing For Contagious Presenteeism And Shirking Behavior, Stefan Pichler, Nicolas R. Ziebarth
The Pros And Cons Of Sick Pay Schemes: Testing For Contagious Presenteeism And Shirking Behavior, Stefan Pichler, Nicolas R. Ziebarth
Upjohn Institute Working Papers
This paper proposes a test for the existence and degree of contagious presenteeism and negative externalities in sickness insurance schemes. First, we theoretically decompose moral hazard into shirking and contagious presenteeism behavior and derive testable conditions. Then, we implement the test exploiting German sick pay reforms and administrative industry-level data on certified sick leave by diagnoses. The labor supply adjustment for contagious diseases is significantly smaller than for noncontagious diseases. Lastly, using Google Flu data and the staggered implementation of U.S. sick leave reforms, we show that flu rates decrease after employees gain access to paid sick leave.
Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West
Effects Of The Minimum Wage On Employment Dynamics, Jonathan Meer, Jeremy West
Upjohn Institute Working Papers
The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment. We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels. We conduct simulations showing that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects. Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years. These effects are most pronounced for younger workers and in …
The Effect Of Health Insurance On Workers' Compensation Filing: Evidence From The Affordable Care Act's Age-Based Threshold For Dependent Coverage, Marcus Dillender
The Effect Of Health Insurance On Workers' Compensation Filing: Evidence From The Affordable Care Act's Age-Based Threshold For Dependent Coverage, Marcus Dillender
Upjohn Institute Working Papers
This paper identifies the effect of health insurance on workers' compensation (WC) filing for young adults by implementing a regression discontinuity design using WC medical claims data from Texas. The results suggest health insurance factors into the decision to have WC pay for discretionary care. The implied instrumental variables estimates suggest a 10 percentage point decrease in health insurance coverage increases WC bills by 15.3 percent. Despite the large impact of health insurance on the number of WC bills, the additional cost to WC at age 26 appears to be small as most of the increase comes from small bills.
Military Retention Incentives: Evidence From The Air Force Selective Reenlistment Bonus, Justin Joffrion, Nathan Wozny
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 …
What Does The Minimum Wage Do?, Dale Belman, Paul J. Wolfson
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.
Employment Relations And Wages: What Can We Learn From Subjective Assessments?, Marta Lachowska
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
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 …
Say Pays! Shareholder Voice And Firm Performance, Maria Guadalupe, Vicente Cuñat, Mireia Gine
Say Pays! Shareholder Voice And Firm Performance, Maria Guadalupe, Vicente Cuñat, Mireia Gine
Upjohn Institute Policy Papers
This paper estimates the effect of increasing shareholder “voice” in corporations through a new governance rule that provides shareholders with a regular vote on pay: Say on Pay. We apply a regression discontinuity design to Say on Pay shareholder proposals to deal with prior expectations and the endogeneity of internal governance rules. Adopting Say on Pay leads to large increases in market value (5.4 percent), firm profitability, and long-term performance. In contrast, we find small effects on the level and structure of pay. This suggests that Say on Pay operates as a regular confidence vote, increasing efficiency, and market value.
Worker Signals Among New College Graduates: The Role Of Selectivity And Gpa, Brad J. Hershbein
Worker Signals Among New College Graduates: The Role Of Selectivity And Gpa, Brad J. Hershbein
Upjohn Institute Working Papers
Recent studies have found a large earnings premium to attending a more selective college, but the mechanisms underlying this premium have received little attention and remain unclear. In order to shed light on this question, I develop a multidimensional signaling model relying on college grades and selectivity that rationalizes students’ choices of effort and firms’ wage-setting behavior. The model is then used to produce predictions of how the interaction of the signals should be related to wages, namely that the return on college GPA should fall the more selective the institution attended. Using five data sets that span the early …
Resolving America's Human Capital Paradox: A Jobs Compact For The Future, Thomas A. Kochan
Resolving America's Human Capital Paradox: A Jobs Compact For The Future, Thomas A. Kochan
Upjohn Institute Policy Papers
It is widely recognized that human capital is essential to sustaining a competitive economy at high and rising living standards. Yet acceptance of persistent high unemployment, stagnant wages, and other indicators of declining job quality suggests that policymakers and employers undervalue human capital. This paper traces the root cause of this apparent paradox to the primacy afforded shareholder value over human resource considerations in American firms and the longstanding gridlock over employment policy. I suggest that a new jobs compact will be needed to close the deficit in jobs lost in the recent recession and to achieve sustained real wage …
America's Human Capital Paradox, Thomas A. Kochan
America's Human Capital Paradox, Thomas A. Kochan
Upjohn Institute Working Papers
It is widely recognized that human capital is essential to sustaining a competitive economy at high and rising living standards. Yet acceptance of persistent high unemployment, stagnant wages, and other indicators of declining job quality suggests that policymakers and employers undervalue human capital. This paper traces the root cause of this apparent paradox to the primacy afforded shareholder value over human resource considerations in American firms and the longstanding gridlock over employment policy. I suggest that a new jobs compact will be needed to close the deficit in jobs lost in the recent recession and to achieve sustained real wage …
Strategies For Improving Economic Mobility Of Workers: Bridging Research And Practice, Maude Toussaint-Comeau Editor, Bruce D. Meyer Editor
Strategies For Improving Economic Mobility Of Workers: Bridging Research And Practice, Maude Toussaint-Comeau Editor, Bruce D. Meyer Editor
Upjohn Press
The contributors to this book provide a provocative assessment of the effectiveness of various policies and practices designed to help disadvantaged segments of our population overcome the obstacles in their path to upward economic mobility.
The U.S. Economic Crisis And A Revised New Jobs Tax Credit, Timothy J. Bartik
The U.S. Economic Crisis And A Revised New Jobs Tax Credit, Timothy J. Bartik
Upjohn Institute Policy Papers
An efficacious economic stimulus to help the U.S. economy recover from its current recession is the revival of the New Jobs Tax Credit. Unlike the original credit utilized by the federal government in 1977– 1978, the new version should be a refundable credit but at a lower current dollar value. My 2001 book, Jobs for the Poor: Can Labor Demand Policies Help? proposed a permanent version f the New Jobs Tax Credit that would be automatically triggered when the unemployment rate is high. My estimates, updated to 2008, suggest that such a revised credit might increase aggregate U.S. employment by …
Strategies For Improving Economic Mobility Of Workers, Maude Toussaint-Comeau
Strategies For Improving Economic Mobility Of Workers, Maude Toussaint-Comeau
Employment Research Newsletter
No abstract provided.
Complementarity And Custom In Wage Contract Violation, John S. Earle, Klara Sabirianova Peter
Complementarity And Custom In Wage Contract Violation, John S. Earle, Klara Sabirianova Peter
Upjohn Institute Working Papers
We analyze a model of wage delay in which strategic complementarity arises because each employer's costs of violating its contracts decrease with the arrears in its labor market. The model is estimated on panel data for workers and firms in Russia, facilitating identification through fixed effects for employees, employers, and local labor markets, and instrumental variables based on policy interventions. The estimated reaction function displays strongly positive neighborhood effects, and the estimated feedback loops - worker quits, effort, strikes, and legal penalties - imply that costs of wage delays are attenuated by neighborhood arrears. We also study a nonlinear case …
Wages, Layoffs, And Privatization: Evidence From Ukraine, J. David Brown, John S. Earle, Volodymyr Vakhitov
Wages, Layoffs, And Privatization: Evidence From Ukraine, J. David Brown, John S. Earle, Volodymyr Vakhitov
Upjohn Institute Working Papers
This paper estimates the effects of privatization on worker separations and wages using retrospective data from a national probability sample of Ukrainian households. Detailed worker characteristics are used to control for compositional differences and to assess types of observable "winners" and "losers" from privatization. Preprivatization worker-firm matches are used to control for unobservables in worker and firm selection. The results imply that privatization reduces wages by 5 percent and cuts the layoff probability in half. Outside investor ownership reduces separations but leaves wages unaffected. Winners from privatization tend to be higher-skilled employees of larger firms, but there is no discernible …
The Effect Of Minimum Wages On The Employment And Earnings Of South Africa's Domestic Service Workers, Tom Hertz
Upjohn Institute Working Papers
Minimum wages have been in place for South Africa's one million domestic service workers since November of 2002. Using data from seven waves of the Labour Force Survey, this paper documents that the real wages, average monthly earnings, and total earnings of all employed domestic workers have risen since the regulations came into effect, while hours of work per week and employment have fallen. Each of these outcomes can be linked econometrically to the arrival of the minimum wage regulations. The overall estimated elasticities suggest that the regulations should have reduced poverty somewhat for domestic workers, although this last conclusion …
Kids At Work: The Value Of Employer-Sponsored On-Site Child Care Centers, Rachel Connelly, Deborah S. Degraff, Rachel A. Willis
Kids At Work: The Value Of Employer-Sponsored On-Site Child Care Centers, Rachel Connelly, Deborah S. Degraff, Rachel A. Willis
Upjohn Press
Connelly, DeGraff, and Willis chronicle the trends in the growth in on-site child care programs and perform analyses that shed light on the value of employer-sponsored child care to employees. The authors note that employees may not be the only ones to benefit. Employers may be able to gain wage savings for the firm.
Community Norms And Organizational Practices: The Legitimization Of Wage Arrears In Russia, 1992-1999, John S. Earle, Andrew Spicer, Klara Sabirianova Peter
Community Norms And Organizational Practices: The Legitimization Of Wage Arrears In Russia, 1992-1999, John S. Earle, Andrew Spicer, Klara Sabirianova Peter
Upjohn Institute Working Papers
What role do community norms play in the diffusion and persistence of new organizational practices? We explore this question through an examination of the widespread practice of wage arrears, the late and non-payment of wages, in Russia during the 1990s. Existing research on wage arrears most often examines this practice as a means of flexible wage adjustment under difficult economic conditions. We develop an alternative theory that explains wage arrears through their acceptance as a legitimate form of organizational behavior within local communities. Our empirical analysis finds some support for the neoclassical position that wage arrears reflect adjustment to negative …