Labor Economics Commons^™

Wage-Vacancy Contracts And Coordination Frictions, Nicolas L. Jacquet, Serene Tan

Research Collection School Of Economics

We consider a directed search model with risk-averse workers and risk-neutral entrepreneurs who can set up firms that post wage-vacancy contracts, i.e., contracts where firms can make payments to more than one applicant, and where the payments can be different for each applicant and be contingent on the number of applicants. We establish that the type of contracts the literature focuses on are not offered if firms can post wage-vacancy contracts. We show that there exists an equilibrium satisfying a Monotonic Expected Utility property which is efficient. Furthermore, we investigate the role of wage-vacancy contracts on welfare and competition.

Changing Unchanged Inequality: Higher Education, Youth Population, And The Japanese Seniority Wage System, Ken Yamada, Daiji Kawaguchi

Research Collection School Of Economics

Wage inequality declined in the 1990s and rose after 2000 among full-time male workers in Japan. Narrowing wage inequality in the 1990s can be accounted for by a decline in between-group inequality resulting from a stable return to education and decreased returns to experience and tenure. Widening wage inequality after 2000 can be accounted for by a rise in within-group inequality resulting from a relative increase in educated and experienced workers, as well as changes in heterogeneous returns to human capital.

An Economic Analysis Of Optimum Population Size Achieved Through Boosting Total Fertility And Net Immigration, Hian Teck Hoon

Research Collection School Of Economics

Without net immigration, the population size is projected to decline from 2025 onward. Does it matter? To answer this question, the paper proceeds in two main parts. In the first part, taking a citizen's utility as a measure of welfare, we identify the channels through which a larger population size reduces welfare, on the one hand, and increases welfare on the other hand. The optimum population size is achieved when the net resultant effect of all these channels leaves citizens' welfare at the maximum. When current and projected total fertility rates without net immigration lead to a projected path of …

The Role Of Family Ties In Mitigating Moral Hazard: Firm-Level Evidence From Tamil Nadu, India, Goldie Chow

Master's Theses

Drawing on firm-level data from the district of Coimbatore in Tamil Nadu, India, this study explores the role of family ties as a means to counteract potential moral hazard concerns. It is shown that firms will be more likely to employ family relations when faced with a higher hidden context for moral hazard. Specifically, the analysis finds that the presence of family members within the firm is higher when the firm provides general training and that firms that are more likely to do external business with family relations when it is believed that the legal system is not effective. Additionally, …

The Social Cost Of Labor And Its Importance For Labor Economics, Robert E. Prasch

Social Cost Workshop

The starting point and core notion of neoclassical or mainstream economics is a reductionist vision of the exchange of commodities. Missing is the historical, social, and legal environments within which exchanges occur. A parallel and equally problematic notion is that labor exists as something of a “found object.” By contrast, the classical school of economists understood that laborers must earn a wage equal to or greater than “subsistence” if society was to be an ongoing enterprise. Laborers must be fed, sheltered, socialized, and educated before they arrive in the labor market. This, in a phrase, is the Social Cost of …

Work Hours In Retail: Room For Improvement, Françoise J. Carré, Chris Tilly

Upjohn Institute Policy Papers

With full-time jobs, hourly wages are appropriate primary indicators of job quality. However, in sectors where full-time schedules do not dominate, total hours matter for job quality and worker outcomes. We explored hour levels and trends in retail trade and its largest subsector, grocery stores. Retail is known for part-time and short shifts. With a comparison of retail hours in three countries—the United States, Canada, and Mexico—we contribute insights into aspects of the U.S. policy and regulatory systems that could be altered in order to improve retail jobs.

The Look Of The Line: An Empirical Investigation Of The Impacts Of Facial Symmetry On Salary Levels Of Offensive Linemen In The Nfl, Kristen Wampole

Business and Economics Honors Papers

Evaluation of a professional athlete's performance for the purposes of compensation determination is difficult, especially when decision making may not follow the expected "instrumental rationality." This paper will look to examine the factors, both productive and non-productive, impacting an Offensive Lineman's salary in the NFL. The purpose of this study is to determine whether an offensive lineman's salary is based on productive characteristics adhering to instrumental rationality, or whether the influence of non-productive characteristics influence salary as ultimately determined by team management. Results indicate that players within the tackle position with earning salaries in the seventy-fifth percentile gain additional benefits …

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 …

Economics Of Salary Dispersion In The National Basketball Association, Daniel Schouten

Honors Projects

The purpose of this study is to discover the optimal amount of salary dispersion for an NBA team and the affect that dispersion has on team wins and revenue. The optimal amount of salary dispersion could be different for teams that want to maximize wins and teams that want to maximize revenue. For the purpose of this study, five different measures of salary dispersion are utilized to most effectively understand the effects. Empirical models are constructed and OLS regressions employed using cross-sectional data from the 2006-07 NBA season through the 2010-11 season to understand the relationship. The empirical evidence supports …

Contracted Job Development In Rural Communities: Vr Agency Perspectives, Catherine Ipsen, University Of Montana Rural Institute

Employment

Legislation guiding VR service delivery provides flexibility regarding how services are organized and implemented. As a result, state VR agencies provide services in the context on their own resource parameters (e.g. budget and agency size) and geography. This natural variation allows for a variety of service delivery models to emerge, each with associated benefits and drawback. To date, however, there is little comparative evidence for evaluating rural service delivery practices. To address this knowledge gap, we conducted 82 qualitative interviews with VR informants from 48 state VR agencies including 17 general agencies, 12 blind/low vision agencies, and 19 combined agencies. …

The Effect Of Climate Change On Mongolian Herding Communities: Investigating The Current Prevalence Of Ecomigration And Community Perceptions Of And Responses To Migration In The Countryside, Rachael Diniega

Independent Study Project (ISP) Collection

The livelihoods of Mongolian herders depend on rangeland conditions, which are being threatened by land degradation and climate change. These changes may cause some Mongolian herders to move to a different land. Thus, the prevalence of ecomigration today and the perceptions and responses of herding communities to migrants were examined to understand ways government could form adaptation policy to climate change in the future. Interviews were conducted with both migrant and host herders as well as government officials in Mungunmorit, Tov and Delgerkhan, Khentii, including the state reserve Herlen Bayan-Olaang. A survey was used to evaluate the prevalence of ecomigration …

Transportation: A Barrier To Successful Employment Outcomes Among Rural Vr Clients, Catherine Ipsen, University Of Montana Rural Institute

Employment

In testimony to the Senate Health, Education, Labor and Pensions Committee, Billy Altom, Executive Director of the Association of Programs for Rural Independent Living (APRIL) stated, "the lack of available, affordable, and accessible transportation is one of the most significant and persistent problems faced by people with disabilities...This is especially true in rural America." Lack of transportation translates into barriers in employment, health care access, and community participation among rural people with disabilities (Iezzoni, Killeen, & O'Day, 2006; Crudden, Sansing, & Butler, 2005). Recently, this was confirmed by Vocational Rehabilitation (VR) agency research participants, representing 48 VR agencies in 37 …

Arguments For A Living Wage In The United States: Prospects For Persuasion And Expansion, Corinne Bazzinotti

College of Management Honors Theses

This thesis explores the living wage, and in particular the varied arguments that support the adoption and spread of the living wage. A “living wage” is a decent wage. “It affords the earner and her or his family the most basic costs of living without need for government support or poverty programs,” and takes into account a, “complete consideration of the cost of living.” The topic is timely, as the economy in the United States remains in decline, and now more than ever the American workforce is struggling to stay afloat, along with businesses across the country.

I want to …

The Politics Of H-1b Visa Limits, Fang Fang

Political Science Theses and Capstones

In recent years, the number of H-1B Visa (Temporary Work Visa) issued has increased tremendously. Various lobbying groups are devoted to persuading Congress to revise immigration laws and to increase the work visa issuance cap. The purpose of my study is to find out the how the H-1B Visa policy is effected by analyzing the lobbying expenditures of different economic sectors. Although there are abundant studies on the factors that affect immigration policies, there are few studies that concentrate specifically on the H-1B Visa. I combined campaign finance data and annual work visa data to assess the relationship between lobbying …

Short Hours, Long Hours: Hour Levels And Trends In The Retail Industry In The United States, Canada, And Mexico, Françoise Carré, Chris Tilly

Upjohn Institute Working Papers

In settings where most workers have full-time schedules, hourly wages are appropriate primary indicators of job quality and worker outcomes. However, in sectors where full-time schedules do not dominate—primarily service-producing activities—total hours matter, in addition to hourly wages, for job quality and worker outcomes. In this paper we employ a sector-focused, comparative framework to further examine hours levels—measured as average weekly hours—and trends in Canada, the United States, and Mexico. We analyze the retail sector, which is of interest because of its high rate of part-time employment in the U.S. Based on our fieldwork in the United States and Mexico …

What Determines Public Pension Investment Risk-Taking Policy?, Nancy Mohan, Ting Zhang

Employment Research Newsletter

No abstract provided.

Labor Force Participation In Mississippi And Other Southern States, Marta Lachowska, Stephen A. Woodbury

Employment Research Newsletter

No abstract provided.

Conflict With Quitting Rights: A Mechanism Design Approach, Madhav S. Aney

Research Collection School Of Economics

Why do agents engage in costly dispute resolution such as litigation and arbitration when costless settlement is available? I present a model with one sided asymmetric information where the payoff from litigation for both agents depends on the beliefs of the uninformed agent. Taking these payoffs as their outside options, agents negotiate over the allocation of an indivisible object that is in dispute and transfers. It is shown that it is impossible to implement an allocation that satisfies budget balance that guarantees the agents their payoff from conflict when agents can quit negotiations unilaterally at any stage.

Negotiating Within A Shared Governance Format, Suzanne C. Wagner, C. Henrik Borgstrom

Journal of Collective Bargaining in the Academy

The act of unionization creates a sense of unity among faculty, however, it also creates an adversarial relationship with administration. Although both the administration and the faculty believe they have the university’s best interests in mind, contract negotiations are typically contentious and divisive. A unique process for negotiations is presented illustrating how working within a shared governance format can enable faculty and administration to work together in preparation, research and analysis, problem solving and mutual gains bargaining that results in success for both parties and, ultimately, the university.

Examining The Decline In Bargaining Power In Faculty Labor Unions In The United States: The Effects Of Reduced Monopoly Power In Providing Public Higher Education, Lynn A. Smith, Robert S. Balough

Journal of Collective Bargaining in the Academy

This study examines the decline in the economic power of faculty labor unions in public higher education in the United States in recent years. The authors assume the labor union is a utility maximizing entity and that income accrues to the “union family.” The union family attempts to maximize this income. By analyzing collective bargaining agreements and hiring practices between the Association of Pennsylvania State College and University Faculties and the Pennsylvania State System of Higher Education, the authors construct bargaining indices. Because this study is focused on the change in bargaining power of labor unions in public higher education …