Found 45 article(s) for author 'Wages'

Extending the Race between Education and Technology

Extending the Race between Education and Technology. Claudia Goldin, Lawrence Katz, January 11, 2020, Paper, “The race between education and technology provides a canonical framework that does an excellent job of explaining US wage structure changes across the twentieth century. The framework involves secular increases in the demand for more-educated workers from skill-biased technological change, combined with variations in the supply of skills from changes in educational access. We expand the analysis backwards and forwards. The framework helps explain rising skill differentials in the nineteenth and twenty-first centuries, but needs to be augmented to illuminate the recent convexification of education returns and implied slowdown in the growth of the relative demand.Link

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Moving to density: Half a century of housing costs and wage premia from Queens to King Salmon

Moving to density: Half a century of housing costs and wage premia from Queens to King Salmon. Daniel Shoag, December 31, 2019, Paper, “Have workers stopped moving to the highest-density, highest-productivity places in the country because of a decline in the urban wage premium, or because the rent is too high? We analyze how important these two explanations are by studying them in one and the same empirical analysis. We find that non-college workers now effectively face a housing-inclusive urban wage penalty, while workers with college education continue to face a significant urban wage premium. We relate these findings to the share of native-born cross-state migrants across areas of different density levels, and stumble upon a puzzle: why aren’t more college workers moving to the city?Link

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The Wage Penalty to Undocumented Immigration

The Wage Penalty to Undocumented Immigration. George Borjas, May 2019, Paper, “This paper examines the determinants of the wage penalty experienced by undocumented workers, defined as the wage gap between observationally equivalent legal and undocumented immigrants. Using recently developed methods that impute undocumented status for foreign-born persons sampled in microdata surveys, the study documents a number of empirical findings. Although the unadjusted gap in the log hourly wage between the average undocumented and legal immigrant is very large (over 35 percent), almost all of this gap disappears once the calculation adjusts for differences in observable socioeconomic characteristics. The wage penalty to undocumented immigration for men was only about 4 percent in 2016.Link

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Equal Pay Day: closing the gender wage gap

Equal Pay Day: closing the gender wage gap. Hannah Riley Bowles, April 1, 2019, Audio, “Today is Equal Pay Day so we’re going to spend the hour looking at the gender pay gap. Studies show that women working full-time make around 82 cents for every $1 that their male colleagues make. For women of color that divide is even larger. This hour, we’ll discuss why men continue to be paid more than women in the workplace, what role career choices and sex discrimination play in the disparity, and what can be done to shrink the gap. We’ll also talk about legislation that recently passed in the U.S. House of Representatives that would ensure equal wages for men and women. Our guests are JOCELYN FRYE, a senior fellow at the Center for American Progress, and HANNAH RILEY BOWLES, senior lecturer at Harvard Kennedy School.Link


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Birds of a Feather: Estimating the Value of Statistical Life from Dual-Earner Families

Birds of a Feather: Estimating the Value of Statistical Life from Dual-Earner Families. Joseph Aldy, March 2019, Paper, “Economists have long employed hedonic wage analysis to estimate income-fatality risk trade-offs, but some scholars have raised concerns about systematic measurement error and omitted variable bias in the empirical applications of this model. Recent studies have employed panel methods to remove time-invariant individual-specific characteristics that could induce bias in estimation. In an analogous manner, this paper proposes to exploit assortative matching on risk attitudes within married couples to control for worker characteristics that are unobserved to the econometrician. I develop and implement a modified hedonic wage estimator based on a within-coupled differenced wage equation for full-time working married couples with the Current Population Survey Merged Outgoing Rotation Group over 1996-2002. The key assumption builds on the findings in the assortative matching literature that individuals often marry those who have common traits across many dimensions, including those that may influence worker wages and are correlated with observed occupational fatality risks.Link

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Economic Strategy for Higher Wages and Expanded Labor Participation

Economic Strategy for Higher Wages and Expanded Labor Participation. Jason Furman, Martin Feldstein, 2019, Paper, “We propose two alternative policy options for promoting increased earnings and employment of low-income households: expanding the Earned Income Tax Credit (EITC) among childless workers, and implementing a wage subsidy for low-income workers that would be administered through employers. The EITC is based on household income and administered as a tax credit, while the subsidy based on hourly wages would require no filing or administrative effort by workers. We compare and contrast the costs and benefits of these two approaches to raising wages. Our two policy options are meant as part of a response to the sluggish income growth at the bottom of the distribution over the past several decades.Link

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From Dollars to Sense: Placing a Monetary Value on Non-Cash Compensation Encourages Employees to Value Time over Money

From Dollars to Sense: Placing a Monetary Value on Non-Cash Compensation Encourages Employees to Value Time over Money.  Ashley Whillans, 2019, Paper, “When deciding where to work, employees may focus too much on salary and not enough on non cash benefits such as paid time-off, potentially undermining their long-term happiness. We propose a simple solution to encourage employees to recognize the value of non-cash benefits: list the financial value of non-cash compensation. Results from one archival data set (n = 42,271) and eight studies (n = 3,190) provide evidence for these ideas. First, as expected, employees who receive non-cash compensation are happier than employees who do not. Yet, prospective employees underestimate the happiness benefit of non-cash benefits. Second, and most critically, prospective employees are more likely to choose jobs with greater non-cash benefits and lower salaries when the cash value of these non-cash benefits are listed.Link

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The Wage Impact of the Marielitos: The Role of Race

The Wage Impact of the Marielitos: The Role of Race. George Borjas, January 30, 2019, Paper, “The author’s 2017 reappraisal of the impact of the Mariel supply shock revealed that the wage of low-skill workers declined in post-Mariel Miami. Clemens and Hunt (2019) assert that a data quirk in the March CPS—specifically, a substantial increase in the black share of Miami’s low-skill workforce in the period—implies that those wage trends do not correctly measure the impact of the Marielitos. Because blacks earn less than whites earn, the increased black share would spuriously reduce the average low-skill wage in Miami. The author examines the sensitivity of the evidence to the change in the racial composition of the sample. The Clemens and Hunt assertion is demonstrably false. The timing of the post-Mariel decline in Miami’s wage does not coincide with the increase in the black share. And sensible adjustments for racial composition do not change the finding that Miami’s low-skill wage fell after 1980.Link

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Amazon Is Raising Its Minimum Wage. Here’s Why Some Employees Aren’t Cheering

Amazon Is Raising Its Minimum Wage. Here’s Why Some Employees Aren’t Cheering. Nancy Koehn, October 11, 2018, Audio, “Last week, Amazon announced that it would be raising the minimum wage for all its employees to $15 an hour. However, employees quickly learned that when Amazon giveth, Amazon taketh away — because, at the same time, the company said it would also be getting rid of monthly bonuses and some stock benefits. Amazon has since walked back the move, assuring employees in a letter addressed to Sen. Bernie Sanders that no employee would see their compensation go down as a result of the changes. But some are still skeptical. Nancy Koehn, historian at the Harvard Business School, says the move could demoralize the corporate giant’s workforce.Link

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