Found 46 article(s) for author 'Wages'

Share Capitalism and Worker Wellbeing

Share Capitalism and Worker Wellbeing. Richard Freeman, 2016, Paper, “We show that worker wellbeing is not only related to the amount of compensation workers receive but also how they receive it. While previous theoretical and empirical work has often been pre-occupied with individual performance-related pay, we here demonstrate a robust positive link between the receipt of a range of group performance schemes (profit shares, group bonuses and share ownership) and job satisfaction. Critically, this relationship remains after conditioning on wage levels, which suggests these pay methods provide utility to workers in addition to that through higher wages. These findings survive a variety of methods aimed at accounting for unobserved
individual and job-specific characteristics.Link 

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E-governance, Accountability, and Leakage in Public Programs: Experimental Evidence from a Financial Management Reform in India

E-governance, Accountability, and Leakage in Public Programs: Experimental Evidence from a Financial Management Reform in India. Rohini Pande, October 16, 2016, Paper, “In collaboration with the Government of Bihar, India, we conducted a large-scale experiment to evaluate whether transparency in fiscal transfer systems can increase accountability and reduce corruption in the implementation of a workfare program. The reforms introduced electronic fund-flow, cut out administrative tiers, and switched the basis of transfer amounts from forecasts to documented expenditures. Treatment reduced leakages along three measures: expenditures and hours claimed dropped while an independent household survey found no impact on actual employment and wages received; a matching exercise reveals a reduction in fake households on payrolls; and local program officials’ self-reported median personal assets fell.Link

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Augmenting the Human Capital Earnings Equation with Measures of Where People Work

Augmenting the Human Capital Earnings Equation with Measures of Where People Work. Richard Freeman, August 2016, Paper, “We augment standard log earnings equations for workers in US manufacturing with variables reflecting measured and unmeasured attributes of their employer. Using panel employee-establishment data, we find that establishment-level employment, education of coworkers, capital equipment per worker, and firm-level R&D intensity affects earnings substantially. Unobserved characteristics of employers captured by employer fixed effects also contribute to the variance of log earnings, although less than unobserved characteristics of individuals captured by individual fixed effects. The observed and unobserved measures of employers mediate the effects of individual characteristics on earnings and increase earnings inequality through sorting of workers among establishments.Link

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Does Productivity Still Determine Worker Compensation? Domestic and International Evidence

Does Productivity Still Determine Worker Compensation? Domestic and International Evidence. Robert Lawrence, 2016, Book Chapter. “The American dream is that each generation should live twice as well as the previous one, and this requires that incomes rise at an annual rate of around 2 percent per year. At this pace, incomes will double every 35 years. Between 1947 and 1970, average real compensation in the US increased at annual rate of 2.6 percent—a pace that was actually faster than required to achieve the dream. But since 1970, the average real compensation of US workers has grown at less than 1 percent per year, and at that pace it would take almost a lifetime to see incomes double.Link

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On Equal Pay Day, Why The Gender Gap Still Exists

On Equal Pay Day, Why The Gender Gap Still Exists. Claudia Goldin, April 12, 2016, Audio. “President Obama has declared today Equal Pay Day. There’s a reason it falls on April 12. As the proclamation says, today marks how far into the new year women would have to work in order to earn the same as men did in the previous year. Women, on average, make 79 cents for every dollar men earn. Harvard economics professor Claudia Goldin has looked into the reasons for this, and you say the reason is not primarily discrimination. Is that right?Link

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Tax Aversion in Labor Supply

Tax Aversion in Labor Supply. Michael I. Norton, April 2016, Paper. “In a real-effort laboratory experiment, labor supply decreases more with the introduction of a tax than with a financially equivalent drop in wages. This “tax aversion” is large in magnitude: when we decompose the productivity decrease that arises from taxation, we estimate that 40% is due to the lower net wage and the remaining 60% to tax aversion. This tax aversion affects labor supply more on the extensive margin (working less) than on the intensive margin (being less productive while working). The aversion is equally strong whether tax revenue goes to the U.S. government or back to the experimenter (a “laboratory tax”). We discuss the implications of our results for the relationship between labor supply and taxation.Link

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The Labor Supply of Undocumented Immigrants

The Labor Supply of Undocumented Immigrants. George Borjas, March 2016, Paper. “The Department of Homeland Security estimates that 11.4 million undocumented persons reside in the United States. Congress and President Obama are considering a number of proposals to regularize the status of the undocumented population and provide a “path to citizenship.” Any future change in the immigration status of this group is bound to have significant effects on the labor market, on the number of persons that qualify for various government-provided benefits, on the timing of retirement, on the size of the population receiving Social Security benefits, and on the funding of almost all of these government programs. This paper provides a comprehensive empirical study of the labor supply behavior of undocumented immigrants in the United States.Link

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How to use Economic Theory to Improve Estimators, with an Application to Labor Demand and Wage Inequality

How to use Economic Theory to Improve Estimators, with an Application to Labor Demand and Wage Inequality. Maximilian Kasy, March 12, 2016, Paper. “Economic theory, when it has empirical content, provides testable restrictions on empirically identified objects. These empirical objects might be estimated in an unrestricted way, leading to estimates of potentially large variance, or subject to the theoretical restrictions, leading to estimates of lower variance that are potentially biased, inconsistent, and non-robust.Link

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Real Fixes for Workplace Bias

Real Fixes for Workplace Bias. Iris Bohnet, March 11, 2016, Opinion. “Corporations, not-for-profit groups and governments spend billions of dollars every year on diversity training—without knowing whether the programs work. A review of almost 1,000 studies on interventions aimed at reducing prejudice found that most programs weren’t tested.Link

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Tethered Lives: A Couple-Based Perspective on the Consequences of Parenthood for Time Use, Occupation, and Wages

Tethered Lives: A Couple-Based Perspective on the Consequences of Parenthood for Time Use, Occupation, and Wages. Alexandra Killewald, March 2016, Paper. “Prior research on parenthood effects has typically used single-sex models and estimated average effects. By contrast, we estimate population-level variability in partners’ changes in housework hours, paid work hours, occupation traits, and wages after becoming parents, and we explore whether one partner’s adjustment offsets or supplements the other’s. We find tradeoffs between spouses on paid work adjustments to parenthood, but complementarity in adjustments to housework hours, occupation traits, and wages. The effect of parenthood on wives’ behaviors is larger and more variable than husbands’ in every domain.Link

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