Wage determination Research Papers - Academia.edu (original) (raw)

We utilize the 2006 Census -- the first large-scale, representative Canadian data set to include information on apprenticeship certification -- to compare the returns from apprenticeships with those from other educational pathways (high... more

We utilize the 2006 Census -- the first large-scale, representative Canadian data set to include information on apprenticeship certification -- to compare the returns from apprenticeships with those from other educational pathways (high school graduation, non-apprenticeship trades and community college). An apprenticeship premium prevails for males but a deficit is evident for females, with this pattern prevailing across the quantiles

How marriage interacts with men's earnings is an important public policy issue, given debates over programs to directly encourage healthy marriages. This paper generates new findings about the earnings-marriage relationship by... more

How marriage interacts with men's earnings is an important public policy issue, given debates over programs to directly encourage healthy marriages. This paper generates new findings about the earnings-marriage relationship by estimating the linkages between marriage, work commitment, and wage rates. Unlike other studies of the marital wage premium for men, we examine how marital status and marital transitions affect hours worked as well as wage rates, take account of the feedback effect on wage rates and earnings associated with marriage effects on hours worked, estimate marriage effects on black and low skill men, control for several dimensions of selection, and follow men from age 17-40. We find that marriage increases men's earnings by about 20 percent and also find a rise in wage rates and hours worked increases marriage. These findings suggest that both marriage-enhancing and earnings-enhancing policies can set off a virtuous circle, in which marriage and earnings rein...

This paper contributes to the debate on the causes of unemployment in interwar Germany. It applies the Layard-Nickell model of the labour market to interwar Germany, using a new quarterly data set. The basic model is extended to capture... more

This paper contributes to the debate on the causes of unemployment in interwar Germany. It applies the Layard-Nickell model of the labour market to interwar Germany, using a new quarterly data set. The basic model is extended to capture the effects of the tariff wage ...

This is just a reaction to the paper "The Effects of Sexual Activities on Wages." I don't mean to sound like the know-it-all-type being a fresh graduate questioning the work of a doctor of the field, but my reaction is all humbly based on... more

This is just a reaction to the paper "The Effects of Sexual Activities on Wages." I don't mean to sound like the know-it-all-type being a fresh graduate questioning the work of a doctor of the field, but my reaction is all humbly based on what I have learned/read/heard/observed. The paper has its reputation, I have my freedom of speech.

This paper contributes to the debate on the causes of unemployment in interwar Germany. It applies the Layard-Nickell model of the labour market to interwar Germany, using a new quarterly data set. The basic model is extended to capture... more

This paper contributes to the debate on the causes of unemployment in interwar Germany. It applies the Layard-Nickell model of the labour market to interwar Germany, using a new quarterly data set. The basic model is extended to capture the effects of the tariff wage ...

From 2006 to 2009, Federal minimum wages in Australia were set by the Australian Fair Pay Commission. This paper uses data from the Household, Income and Labour Dynamics in Australia panel survey to investigate the circumstances of... more

From 2006 to 2009, Federal minimum wages in Australia were set by the Australian Fair Pay Commission. This paper uses data from the Household, Income and Labour Dynamics in Australia panel survey to investigate the circumstances of persons who are paid at or near the minimum wage, and thus potentially affected by the wage determinations. Net disposable incomes for actual and potential minimum wage workers are modelled in and out of work to investigate the implications of the wage determinations on work incentives. In addition, a range of measures of socioeconomic status and wellbeing are inspected. Comparisons are made with selected groups of non-employed persons and those with higher earnings to highlight the potential costs and benefits for affected individuals, and hence the potential trade-offs faced in setting minimum wages if we accept that increases in minimum wages reduce employment opportunities.

This Discussion Paper is issued within the framework of IZA's research area Labor Markets in Transition. Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include... more

This Discussion Paper is issued within the framework of IZA's research area Labor Markets in Transition. Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself ...

National negotiations in France in 2003 produced a comprehensive agreement extending increased rights to training. The agreement was passed into law and operational regulations the following year and in 2005 detailed implementation... more

National negotiations in France in 2003 produced a comprehensive agreement extending increased rights to training. The agreement was passed into law and operational regulations the following year and in 2005 detailed implementation agreements were the subject of sector negotiations. Observatories were established to monitor and predict changing skills needs and recommend sector priorities for training. The 2003 agreement is the most important development in the industrial relations of training in France since social dialogue was first instituted over training more than 30 years ago in the settlement of the widespread unrest of 1968. This paper offers an early evaluation of the impact of the new agreement through the views of the principal negotiators from the five main trade union confederations and the principal employers' association. The traditional characteristics of industrial relations in France are well known: trade unions are divided along political lines and lack a ser...

This paper looks at earnings differentials between (1) members of different ethnic groups and (2) employers’ relatives, unrelated co-ethnics, and other workers, in the Ghanaian manufacturing sector. We find that a significant proportion... more

This paper looks at earnings differentials between (1) members of different ethnic groups and (2) employers’ relatives, unrelated co-ethnics, and other workers, in the Ghanaian manufacturing sector. We find that a significant proportion of the identified earnings differentials between ethnic groups can be explained with reference to a fairly standard set of observed workers’ characteristics. Labour market segregation along ethnic

Shimer (2005) showed that a standard search and matching model of the labor market fails to generate fluctuations of unemployment and vacancies of the mag-nitude observed in US data in response to shocks to average labor productivity of... more

Shimer (2005) showed that a standard search and matching model of the labor market fails to generate fluctuations of unemployment and vacancies of the mag-nitude observed in US data in response to shocks to average labor productivity of plausible magnitude. He also ...

This paper compares the wages of workers inside the United States to the wages of observably identical workers outside the United States-controlling for country of birth, country of education, years of education, work experience, sex, and... more

This paper compares the wages of workers inside the United States to the wages of observably identical workers outside the United States-controlling for country of birth, country of education, years of education, work experience, sex, and rural-urban residence. This is made possible by new and uniquely rich microdata on the wages of over two million individual formal-sector wage-earners in 43

Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study... more

Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper shou...

We find the Phillips-type model performs well in explaining wage adjustment for US non-farm business, US manufacturing, and NY manufacturing sector, showing a typical adjustment to price inflation expectation and labor market tightness.... more

We find the Phillips-type model performs well in explaining wage adjustment for US non-farm business, US manufacturing, and NY manufacturing sector, showing a typical adjustment to price inflation expectation and labor market tightness. While the basic wage model shows evidence of a structural shift for the post-1991 period, this is not evident in the adjusted models for both US non-farm business and NY manufacturing, implying that the observed structural shift for the post-1991 period is likely to be the result of model mis-, or under-specification. The effect of the fraction of unemployment due to permanent job loss on wage inflation appears to be manufacturing-specific, while a smaller adjustment to price inflation expectation appears to be state-specific. On the other hand, the significant effect of the percent of adults unemployed appears to be a national phenomenon.

We find the Phillips-type model performs well in explaining wage adjustment for US non-farm business, US manufacturing, and NY manufacturing sector, showing a typical adjustment to price inflation expectation and labor market tightness.... more

We find the Phillips-type model performs well in explaining wage adjustment for US non-farm business, US manufacturing, and NY manufacturing sector, showing a typical adjustment to price inflation expectation and labor market tightness. While the basic wage model shows evidence of a structural shift for the post-1991 period, this is not evident in the adjusted models for both US non-farm

There are two findings that are conspicuous in almost all studies of individual wage determination. First, standard cross-section wage equations rarely account for more than half of the total variance in earnings between individuals.... more

There are two findings that are conspicuous in almost all studies of individual wage determination. First, standard cross-section wage equations rarely account for more than half of the total variance in earnings between individuals. Second, there are large and persistent inter-industry wage differentials and these are frequently attributed to non-competitive forces in wage determination. This paper explores these two issues

In this paper, we test the hypothesis that computer use will lead to productivity gains only if the firm uses an appropriate set of organizational practices. Detailed data on organizational practices and workers’ compensation are obtained... more

In this paper, we test the hypothesis that computer use will lead to productivity gains only if the firm uses an appropriate set of organizational practices. Detailed data on organizational practices and workers’ compensation are obtained through a Canadian longitudinal linked employer-employee database called the Workplace and Employee Survey (WES). Linked data allow us to take into account both worker and firm unobserved heterogeneity through the estimation of a linear mixed model of wage determination. Our results suggest a small but positive computer-wage premium whose size is related to a set of organizational practices.

The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which are also typically treated as a composite good. However, we show in this paper that firm-level imports can actually be... more

The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which are also typically treated as a composite good. However, we show in this paper that firm-level imports can actually be a wage determinant as important as exports. Furthermore, we also find significant differences in the relationship between trade and wages across types of products. In particular, firms that increase their exports (imports) of high- (intermediate-) technology products tend to increase their salaries. Our analysis is based on unique data from Portugal, obtained by merging a matched firm-worker panel and a matched firm-transaction panel. Our data set follows the population of manufacturing firms and all their workers from 1995 to 2005 and allows for several control variables, including job-spell fixed effects.

This study assesses the 'fair-wage-effort' hypothesis, by examining (a) the relationship between relative wage comparisons and job satisfaction and quitting intensions, and (b) the relative ranking of stated effort... more

This study assesses the 'fair-wage-effort' hypothesis, by examining (a) the relationship between relative wage comparisons and job satisfaction and quitting intensions, and (b) the relative ranking of stated effort inducing-incentives, in a novel dataset of unionised and non-unionised European employees. By distinguishing between downward and upward-looking wage comparisons, it is shown that wage comparisons to similar workers exert an asymmetric impact on the job satisfaction of union workers, a pattern consistent with inequity-aversion and conformism to the reference point. Moreover, union workers evaluate peer observation and good industrial relations more highly than payment and other incentives. In contrast, non-union workers are found to be more status-seeking in their satisfaction responses and less dependent on their peers in their effort choices The results are robust to endogenous union membership, considerations of generic loss aversion and across different tenure...