Labor eJournalPub Date : 1997-05-19DOI: 10.2139/ssrn.40045
Mark Grimes, E. Tower
{"title":"The Optimum Minimum Wage When Labor Services are Taxed","authors":"Mark Grimes, E. Tower","doi":"10.2139/ssrn.40045","DOIUrl":"https://doi.org/10.2139/ssrn.40045","url":null,"abstract":"We consider an economy (e.g. Chile 1973-83) with a minimum wage sector and a free sector, and a tax on labor earnings. The supply of labor depends positively on the wage. Jobs in the minimum wage sector are allocated by lottery. In such a model a minimum wage may increase employment and output by drawing additional workers into employment. Without taxation the utility of increased output is more than balanced by the utility of decreased leisure. But in the presence of output or labor taxation, that is not necessarily the case. We use GAMS to find the optimum minimum wage for various parameter values.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"os-7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127850510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-05-19DOI: 10.2139/ssrn.2187
Leonzio Rizzo
{"title":"Equalization of Public Training Expenditure in a Cross-Border Labor Market","authors":"Leonzio Rizzo","doi":"10.2139/ssrn.2187","DOIUrl":"https://doi.org/10.2139/ssrn.2187","url":null,"abstract":"This paper analyzes the equalization issue from an efficiency point of view in a two-region model. In each region there is a firm which maximizes profit by choosing wage in a common labor market. Each region is also characterized by different exogenous per worker training expenditure. Under these assumptions any of the two firms would choose a wage which is too high from the point of view of the other firm. The economic insight for this result is that the existence of workers mobility generates a negative externality. With our model we are able to show that by introducing equalization of per worker training expenditure both firms respond by decreasing wages. Moreover, for some productivity levels of training expenditure it is possible to find an equalization level which provokes a Pareto improvement in profits: hence both firms would benefit from full equalization of training expenditure.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116677750","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-05-15DOI: 10.2139/ssrn.59148
G. Picot, T. Wannell
{"title":"An Experimental Canadian Survey that Links Workplace Practices and Employee Outcomes: Why it is Needed and How it Works","authors":"G. Picot, T. Wannell","doi":"10.2139/ssrn.59148","DOIUrl":"https://doi.org/10.2139/ssrn.59148","url":null,"abstract":"Fundamental changes have taken place in the labour market and among firms in the 1980s and 1990s. In some cases we understand what has occurred, but notwhy. In other cases the data do not exist to shed light on exactly what is happening, let alone why. Changes in the labour market are often related to changes in theway in which firms are engaging and paying labour, the adoption of new technologies, changes in the types of markets in which firms compete, and other eventsoccurring in firms; i.e. changes on the demand side of the labour market. But data have never existed that allowed events occurring in firms to be related to theoutcomes for the workers. This paper outlines why such data are necessary. The example of rising inequality is used to demonstrate the need for such a survey. Alsopresented is an outline of how the new data can be provided using a new approach to surveying. The proposed survey first surveys establishments, and then surveysworkers within that establishment. In this way a direct link is made between the activities in the establishment and the outcomes for the workers. Conversely, a directlink is established between the events in the firm and the characteristics of the workers, another area of research that has suffered from a lack of data at themicro-level. This paper outlines why such a survey is needed, the possible content, and research topics that could be addressed with such data.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"61 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121649729","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-05-13DOI: 10.2139/ssrn.10779
Rene Morissette
{"title":"Working More? Working Less?: What Do Canadian Workers Prefer?","authors":"Rene Morissette","doi":"10.2139/ssrn.10779","DOIUrl":"https://doi.org/10.2139/ssrn.10779","url":null,"abstract":"Faced with high unemployment rates, an unequal distribution of worktime, and shifts to temporary, part-time and contract employment, Canadian workers may prefer to change their work hours. Using data from the Survey of Work Arrangements of 1995, we find that two thirds of Canadian workers are satisfied with their work hours. The majority of workers who are not satisfied would prefer more hours for more pay rather than fewer hours for less pay. This finding is robust as it holds for each age group, education level, seniority level, industrial and occupational group. Workers most likely to want more work hours are generally young, have low levels of education, have little seniority, hold temporary jobs, work short hours and are employed in low-skill occupations. Workers who are the most likely to desire a shorter work week are professionals, managers, and natural and social science workers, have high hourly wage rates, possess high levels of education, have long job tenure, occupy permanent jobs and already work long hours. Calculations based on the Survey on Work Reduction of 1985 suggest that if Canadian workers were to voluntarily reduce their work week, the number of work hours available for redistribution would unlikely be sufficient to both eliminate underemployment and reduce unemployment. The potential for work time redistribution, as measured by the propensity to desire fewer hours, appears to be greatest (lowest) in age-education groups with relatively low (high) unemployment rates. This implies that the resulting decrease in unemployment and underemployment could be more pronounced in groups where workers are already relatively successful.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"169 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114744927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-05-01DOI: 10.2139/ssrn.53660
{"title":"A Micro Approach to the Issue of Hysteresis in Unemployment: Evidence from the 1988?1990 Labour Market Activity Survey","authors":"","doi":"10.2139/ssrn.53660","DOIUrl":"https://doi.org/10.2139/ssrn.53660","url":null,"abstract":"This paper uses a rich set of microeconomic labour market data--the 198890 Labour Market Activity Survey published by Statistics Canada--to test whether there is negative duration dependence in unemployment spells. It updates and extends similar work carried out by Jones (1995) who used the 198687 Labour Market Activity Survey. Applying hazard model estimation, the analysis finds some evidence of negative duration dependence at the microeconomic level, which is consistent with the de-skilling hypothesis of hysteresis. These microeconomic estimates of negative duration dependence are used to compute macroeconomic estimates of hysteresis in unemployment. The results suggest that hysteresis effects from de-skilling are very small at the macro level, contributing less than 0.1 percentage points to the aggregate unemployment rate. The small estimated size of this hysteresis effect may explain why evidence of hysteresis has been so difficult to find at the macroeconomic level. The paper also shows that Unemployment Insurance (UI) benefits reduce the probability of exiting from unemployment and that unemployment duration does not seem to be prolonged by reservation-wage effects.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121940956","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-04-03DOI: 10.2139/ssrn.49592
Lutz Hendricks
{"title":"Migration and Human Capital","authors":"Lutz Hendricks","doi":"10.2139/ssrn.49592","DOIUrl":"https://doi.org/10.2139/ssrn.49592","url":null,"abstract":"Immigration in the United States is characterized by a number of empirical regularities. Immigrants cluster geographically and are often employed together. Immigrant earnings differ by origin, even after controlling for education and experience. A large fraction of immigrants eventually returns home, even to low-wage countries. This paper develops a theoretical framework to explain these observations. If worker skills are complementary in production but not perfectly observable by firms, it is optimal to match workers by origin which serves as an indicator of skill. An important implication is that wages and the incentives for skill upgrading depend on the average skill level of a worker's ethnic group. Migration and geographic clustering then arise as workers attempt to escape a reservoir of mostly unskilled workers in their home countries.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125494689","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-04-01DOI: 10.2139/ssrn.8621
Thórólfur Matthíasson
{"title":"Fixed Wage or Share: Contingent Contract Renewal and Skipper Motivation","authors":"Thórólfur Matthíasson","doi":"10.2139/ssrn.8621","DOIUrl":"https://doi.org/10.2139/ssrn.8621","url":null,"abstract":"Fishermen around the world are usually remunerated by shares. Iceland is no exception in that respect. The fixed wage systems that have been tried out have been short-lived and their utilization limited. The fundamental question asked in this paper is: Why do almost all vessel owners use the same remuneration principles? The answer offered is that the circumstances under which fishing is conducted play a vital role here. Surveillance of the conduct of employees is almost impossible. Hence, vessel owners must develop some system for motivating workers and to discourage shirking. It is shown that sharing is better than alternative forms of remuneration in that respect. The production unit is a small platform that is not easily abandoned during a trip. The product of a given trip is well defined. All of these factors help to explain the prevalence of sharing in fisheries.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116603309","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-04-01DOI: 10.2139/ssrn.36844
Bernard Fortin, Guy Lacroix
{"title":"Welfare Benefits, Minimum Wage Rate and the Duration of Welfare Spells: Evidence from a Natural Experiment in Canada","authors":"Bernard Fortin, Guy Lacroix","doi":"10.2139/ssrn.36844","DOIUrl":"https://doi.org/10.2139/ssrn.36844","url":null,"abstract":"In this paper we analyze the impact of benefits on the length of welfare spells. It introduces a \"natural experiment\" approach of comparing the length of welfare spells before and after a major reform of the welfare program that took place in the Province of Quebec in August 1989. An important feature of this reform was the abolishment of discrimination based on age that applied to the benefits single individuals and childless couples below the age of 30 were entitled to. With the reform, their monthly benefits rose from $173 (1986) to $425, an increase of over 145%. To analyze the impact of the reform, we utilize a semi-parametric duration model with time-varying covariates such as welfare benefits, minimum wage rate, unemployment rate, etc. We find that benefits have an important impact on spell duration of individuals below 30 years of age. We also find that the minimum wage rate has an adverse effect on the duration of individuals in the 18-24 age group but a positive effect on those in the 25-29 age group. Finally, our estimates suggest that the reform increased the expected duration on welfare from 2 to 4.5 months.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"95 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128724589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-02-01DOI: 10.2139/ssrn.60166
César Alonso-Borrego, Victor Aguirregabiria
{"title":"Employment Occupational Structure, Technological Capital and Reorganization of Production","authors":"César Alonso-Borrego, Victor Aguirregabiria","doi":"10.2139/ssrn.60166","DOIUrl":"https://doi.org/10.2139/ssrn.60166","url":null,"abstract":"This paper analyzes the role of skill-biased technological progress on the recent changes in the occupation al structure of Spanish manufacturing employment. Our dataset consists of a panel of Spanish manufacturing firms during the period 1986-1991. We confirm a puzzle that has been found in other OECD countries: investment in capital inputs is clearly procyclical, but destruction of unskilled jobs and creation of skilled jobs have been concentrated during the recession. However, we also find that the number of firms who invest by first time in technological capital has been clearly countercyclical. Based on this evidence, we estimate a dynanllc model where firms take discrete decisions about what labor and capital inputs to use, and continuous decisions on the amount of each selected input. Afier controlling for individual heterogeneity and seIf..selection we find that these two decisions have different effects on occupational structure. In particular, we find that for new innovative firms the introduction of technological capital has significant and sizeable effects on the occupational structure ofemployment.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125837037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Labor eJournalPub Date : 1997-02-01DOI: 10.2139/ssrn.431
A. Bartel, N. Sicherman
{"title":"Technological Change and Wages: An Inter-Industry Analysis","authors":"A. Bartel, N. Sicherman","doi":"10.2139/ssrn.431","DOIUrl":"https://doi.org/10.2139/ssrn.431","url":null,"abstract":"Previous research has found evidence that wages in industries characterized as high tech,' or subject to higher rates of technological change, are higher. In addition, there is evidence that skill-biased technological change is responsible for the dramatic increase in the earnings of more educated workers relative to less educated workers that took place during the 1980s. In this paper, we match a variety of industry level measures of technological change to a panel of young workers observed between 1979 and 1993 (NLSY) and examine the role played by unobserved heterogeneity in explaining the positive relationships between technological change and wages, and between technological change and the education premium. We find evidence that the wage premium associated with technological change is primarily due to the sorting of better workers into those industries. In addition, the education premium associated with technological change is found to be the result of an increase in demand for the innate ability or other observable characteristics of more educated workers.","PeriodicalId":114523,"journal":{"name":"Labor eJournal","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1997-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130038167","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}