The Effects of Prevailing Wage Laws: A Comparison of Individual Workers'' Wages Earned on and off Prevailing Wage Construction Projects

I evaluate the effects of prevailing wage laws using a unique data set that shows the wages paid to workers on prevailing wage projects and the wages paid to the same workers during the same time period for work on projects not covered by prevailing wage regulations. The wage comparison shows that workers are generally paid more for work on prevailing wage projects than they are for work on non-prevailing wage projects. Thus, prevailing wage laws likely do increase the cost of public construction. In addition, to the extent that the quality of construction is improved, prevailing wage laws appear to be an inefficient mechanism by which to achieve additional quality, as the regulations often result in workers being paid more than they earn in the private market.     

Membership and wage impact of right-to-work laws

This paper examines the effects of “Right-to-Work” laws on union membership and on the earnings of union and nonunion members. Using regression analysis, we find that once the simultaneous equations bias between the degree of unionization and RTW laws is eliminated, RTW laws have no statistically significant influence on union membership. Similarly, using a human-capital earnings model, we find that RTW laws have no significant influence on the wages of all workers, union workers, or nonunion workers. However, we did find evidence that such laws may promote aggressive union wage policies resulting in a larger union/nonunion relative wages advantage in RTW states than in non-RTW states.     

Gender and racial earnings differentials in academic labor markets

This study estimates earnings differentials across racial and gender groups among college faculty, and decomposes these differentials into the components attributable to differences in individual and institutional characteristics and that which remains unexplained. We find that white females earn approximately 4 percent less than white males; black males earn 7.4 percent more; black females earn one percent more; Hispanic males earn 2.7 percent more; Hispanic females earn 1.7 percent less; and Asian males earn 7.7 percent more than comparable white males. We also find a significant earnings penalty for being a naturalized citizen or noncitizen versus an U.S.-born citizen.     

The effects of prevailing wage laws: A comparison of individual workers’ wages earned on and off prevailing wage construction projects

I evaluate the effects of prevailing wage laws using a unique data set that shows the wages paid to workers on prevailing wage projects and the wages paid to the same workers during the same time period for work on projects not covered by prevailing wage regulations. The wage comparison shows that workers are generally paid more for work on prevailing wage projects than they are for work on nonprevailing wage projects. Thus, prevailing wage laws likely do increase the cost of public construction. In addition, to the extent that the quality of construction is improved, prevailing wage laws appear to be an inefficient mechanism by which to achieve additional quality, as the regulations often result in workers being paid more than they earn in the private market. This research was done originally for the Program Review and Investigations Committee of the Kentucky State Legislature. I thank the staff of the Program Review and Investigations Committee and the Legisla-tive Research Commission for assistance with data collection and Mark Berger for helpful comments. Due to confidentiality requirements, the data cannot be made available.     

The Effects of Licensing on the Wages of Radiologic Technologists

We analyze the effect that state licensing of radiologic technologists (RTs) has had upon RT wages with a unique dataset that allows us to control for place of work and job specialization. Using OLS and several measures of licensing, we find evidence that RTs working in states with licensing statutes earn as much as 3.3% more than RTs working in states without licensing. When we control for endogeneity using instrumental variables (IV) estimation, our estimate of the licensing premium doubles (6.9%). Our results provide further support for existing theories of the effects of occupational licensing on the wages of practitioners.

Self-employment,earnings, and sexual orientation

Although many studies document differences by sexual orientation in earnings and other labor-market outcomes, little is known about differences in self-employment. Our study contributes to both the self-employment literature and sexual-orientation literature by analyzing differences in self-employment rates and earnings by sexual orientation. Gay men are less likely to be self-employed than married men, whereas lesbians are equally likely to be self-employed as married women. We find that gay men earn less than married men. We do find, however, that for those gay men who are self-employed, there is little evidence of a further earnings penalty, at least among full-time workers. Lesbians earn at least as much as married women, but receive no further earnings premium—or penalty—by being self-employed, again among full-time workers.     

A THEORY OF TURNOVER AND WAGE DYNAMICS

We develop a model of turnover and wage dynamics with insurance, match‐specific productivity, and long‐term contracting. The model predicts that wages are downward rigid within firms but can decrease when workers are fired. We apply the model to study the impact of business cycles on subsequent wages and job mobility. Workers hired during a boom have persistent higher future wages if staying with the same firm. However, these boom hires are more likely to be terminated and have shorter employment spells. (JEL C73, D23, D82, J33)     

Opting out among women with elite education

Whether highly educated women are exiting the labor force to care for their children has generated a great deal of media attention, even though academic studies find little evidence of opting out. This paper shows that female graduates of elite institutions have lower labor market involvement than their counterparts from less selective institutions. Although elite graduates are more likely to earn advanced degrees, marry at later ages, and have higher expected earnings, there is little difference in labor market activity by college selectivity among women without children and women who are not married. But the presence of children is associated with far lower labor market activity among married elite graduates. Most women eventually marry and have children, and the net effect is that labor market activity is on average lower among elite graduates than among those from less selective institutions. The largest gap in labor market activity between graduates of elite institutions and less selective institutions is among MBAs, with married mothers who are graduates of elite institutions 30 percentage points less likely to be employed full-time than graduates of less selective institutions.     

Attachment and Racial Identity Issues:

Court battles are being wages and state laws are being challenged to enable white foster families to be considered as viable adoptive placements for black infants and young children. This article examines the issues associated with transracial adoption decision making and provides recommendations for agency practice and policy.     

ELECTORAL POLITICS AND THE EXECUTIVE VETO: A PREDICTIVE THEORY

We argue that winner-take-all voting in states and the unequal distribution of electoral votes across states in presidential elections makes incumbent presidents rationally place more weight on the preferences of voters in closely contested, larger states when making policy decisions. This hypothesis is tested by examining whether presidential veto decisions are influenced by the floor votes of senators from these electorally crucial states. In a pooled sample of 325 individual bills from 1970 through 1988, we find significant evidence of this behavior by incumbent presidents.     

Special Adoption in Japan: Its Problems and Prospects

About 400 children in need in Japan are placed in a “special adoption” each year. The modest numbers are partly the result of a cultural predisposition to think of adoption in terms of family lineage, which discourages the adoption of nonrelatives or children of “bad blood.” Special adoption is also limited by concerns over the confidentiality of family registers, by a heavy reliance on institutional care, and by a narrowly defined concept of an “ideal child.” The limited professional organization of adoption services in Japan makes national reform difficult. However, some adoption agencies have made local efforts to increase placements by avoiding institutional care or assisting in maintaining confidentiality. Potential parents have also been encouraged to extend their idea of an acceptable child in trial placements, and some children have been placed with mixed couples and foreign residents.     

UNDERPAID and OVERWORKED: MEASURING THE EFFECT OF IMPERFECT INFORMATION ON WAGES

This paper investigates the degree of shortfall between the wages workers earn and what they could earn assuming perfect or costless information in the labor market. We use the stochastic frontier regression technique to estimate the degree of shortfall found in wages on an individual basis. The paper tests, in addition, a number of hypotheses supplied by search theory in this context. The results generally confirm the propositions from search theory and indicate that, on the average, worker wages fall short of worker potential wages by approximately 10 percent.     

CORRUPTION,PRODUCT MARKET COMPETITION,AND INSTITUTIONAL QUALITY: EMPIRICAL EVIDENCE FROM THE U.S. STATES

This article argues that the effect of corruption on competition is dependent on the institutional environment. When institutions are relatively efficient, observed corruption is likely to be associated with relatively less competition. Conversely, in areas with low quality institutions (e.g., excessively burdensome regulations), corruption may lead to relatively more competition. I employ unique data on competition, corruption, and institutional quality across U.S. states from 1997 to 2009 and report that a higher level of corruption is associated with relatively more competition in states with low levels of institutional quality. However, as institutional quality improves, the effect of corruption worsens. Thus, institutional quality is a fundamental determinant of the corruption‐competition relationship. Improving institutional quality, while at the same time reducing corruption, will increase competition and likely improve economic outcomes. (JEL D73, O17, L26)     

Labor market adjustments in the unionized contract construction industry

The unionized construction labor market reaches equilibrium by means of three adjustment mechanisms: wage changes, changes in the quality of workers hired, and the migration of workers in and out of the market. The relative importance of the three mechanisms in local labor markets depends on laws and institutional rules. This paper examines some of the important institutional rules and presents a model of market clearning where wage adjustments are infrequent.     

Taking Pressure Off Families: Child‐Care Subsidies Lessen Mothers’ Work‐Hour Problems

We use the Philadelphia Survey of Child Care and Work to model the effect of child‐care subsidies and other ecological demands and resources on the work hour, shift, and overtime problems of 191 low‐income urban mothers. Comparing subsidy applicants who do and do not receive cash payments for child care, we find that mothers who receive subsidies are 21% less likely to experience at least one work hour–related problem on the job. Our results suggest that child‐care subsidies do more than allow women to enter the labor force. Subsidies help make it easier for mothers in low‐wage labor both to comply with employer demands for additional work hours and to earn the needed wages that accompany them.     

How race affects dismissals of college football coaches

We employ a discretetime hazard model and a Blinder-decomposition approach to explore the possibility of racial discrimination in the dismissal and retention of college football coaches by university administrations. A rich data set consisting of 81 institutions over an 11-year period (1990–2000) that contains, in addition to a coach's race, variables on cumulative winning records, annual on-the-field improvements, and pre-/post-season game participation by institutions and their coaches is employed. Our study finds that black coaches, on average, face a dismissal probability that is 9.6 percentage points below that of their nonblack counterparts, ceteris paribus, suggesting that black head coaches may be the beneficiaries of favorable treatment by university administrators. Such a result likely stems from universities ' approach to social concerns involving race and gender issues. This finding also fits a construct that considers workplace discrimination as multi-dimensional. For example, black representation in the college football coaching ranks may be disproportionately low, possibly as a result of discrimination. However, once hired, black coaches are given more time to succeed than nonblacks, other things constant.     

Individual and Organizational Determinants of Wage Disparities in Israel's Local Authorities

Abstract

In this study I compare hypotheses derived from a resource-based view of management with those based on an institutional perspective to test whether wage levels in local authorities are more likely to reflect technical or allocative efficiency measures, the former deriving from “autonomous” revenues from private sources, the latter from policy-based allocation of resources. A focus on wage variations for 5,033 employees from 83 local authorities shows that the level of autonomous revenues lowers the wages for women and Arab employees but not for men and Jewish employees. The results suggest that local authorities use a differential wage allocation, probably indicating increased access to privatized and outsourced employee recruitment. Moreover, the results show that equal opportunity notions, presumably inherent in social policy guidelines, do not ensure interorganizational homogeneity in wages: metropolitan and larger local authorities are more likely to use technical than institutional measures of organizational success. I conclude that neoinstitutional hypotheses that focus both on the competitive and institutional aspects of governance are differentially applied in regard to wages.     

Dilemmas in planning for the protection of children and youths in residential facilities

Protection of children and youths after placement must be given increased emphasis because deinstitutionalized care is itself not harm-free and also because the needs of many children for care, control, and treatment are likely to be met in residential facilities for the foreseeable future. However, the diverse and often incompatible views of advocates and providers of child care about the issues affecting the protection of residents in institutions loom as obstacles to planning for the protection of children and youths after placement. Both of the extreme views of institutional abuse and neglect issues deny the need for child protection after placement. The first holds that since the child or youth is being protected and/or treated, no ongoing child protection is necessary. The other view holds that any child protection effort short of closing residential facilities is futile and therefore without merit. Underreporting of abuse or neglect is widespread; accountability of facilities for the protection of residents is, as a result, unevenly established. These conditions are attributable in part to the inadequate statutory base for protecting children in institutions. At the same time, because of the lack of a planned approach to protection within facilities, and between facilities and child protection agencies, residential facilities are likely to suffer negative public exposure when moderate or serious incidents of maltreatment become public. The absence of procedures for facilities themselves to recognize abuse and neglect invites exposure of incidents by staff and residents. The ad hoc manner in which incidents are managed by external agencies often inflicts unwarranted costs on the reputations of residential facilities that in many cases may have only one or two serious incidents a year. Finally, the use of "last resort" placements may be putting some children and youths into situations of unacceptable risk. Despite the existence of differing views in the residential care field, we have identified areas of agreement between the child protection agencies and residential facilities upon which public policy might build. The problem may not be so much that these attitudes exist, as that the states have not responded in a planned and credible way to the problem of institutional abuse and neglect. Nevertheless, development of a planned and credible approach must deal with these areas of difference if protection of children after placement is to be improved.     

How state exceptions to employment-at-will affect wages

Little research has been conducted on the effects of state adoption of exceptions to the common law doctrine of employment-at-will, which states that both employees and employers have the right to terminate an employment relationship at any time for any reason. I examine how these exceptions affect wages and find that, as predicted, the two are inversely related. All three commonly adopted exceptions are negatively related to the wage rate, with state adoption being associated with up to a three percent reduction in wages.     

Institutional Change and Coproduction of Public Services: The Effect of Charter Schools on Parental Involvement

Recent discussions of school choice have revived arguments thatthe decentralization of governing institutions can enhance thequality of public services by increasing the participation ofintended beneficiaries in the production of those services.We use data from the Schools and Staffing Survey to examinethe extent to which the decentralization of authority to charterschools induces parents to become more involved in their children'sschools. We find that parents are indeed more involved in charterschools than in observationally similar public schools, especiallyin urban elementary and middle schools. Although we find thatthis difference is partly attributable to measurable institutionaland organizational factors, we also find that charter schoolstend to be established in areas with above-average proportionsof involved parents, and we find suggestive evidence that, withinthose areas, it is the more involved parents who tend to selectinto charter schools. Thus, while the institutional characteristicsof charter schools do appear to induce parents to become moreinvolved in their children's schools, such characteristics areonly part of the explanation for the greater parental involvementin charter schools than in traditional public schools.