Employer Drug Testing:

Karen Hawley Henry is the Managing Partner of the Labor and Employment Law Department for Weissburg and Aronson, Inc., a multi-practice law firm which specializes in the representation of health care providers and employers. Ms. Henry received her law degree from Hastings College of Law in San Francisco, and previously received a Masters in Labor Economics from Iowa State Univirsity. She serves as labor counsel to the Affiliated Hospitals of San Francisco, a multi-employer collective bargaining group, and also represents a number of other public and private California health care facilities. In addition to her presentations at numerous seminars and programs on employment law issues, she participated in AHA's 1987 Teleconference on Drug Testing and Substance Abuse, is a member of AHA's Ad Hoc Labor Relations committee, and has authorized numerous publications, including the "Health Care Supervisor's Legal Guide." Her firm currently is working with a number of employers developing policies related to fitness for duty or drug testing.     

Pensions and the uses of ignorance by unions and firms

Pensions are contingent claims contracts that are often fashioned by collective bargaining under conditions of asymmetric information and market power. Pensions are not an employer’s or a union’s optimal contract; they represent compromise. Employers use pensions to minimize labor costs and to adjust to market changes. Pensions help unions improve and protect their members’ work lives and help unions to survive as institutions. When workers’ estimations of their pensions differ from their employers’ estimations a moral hazard can exist. Less mobile workers and those with less influence subsidize the pension benefits of other workers or reduce an employer’s costs. Econometric results based on data from the President’s Commission on Pension Policy show that certain workers, namely women, overvalue their plans, which provides an opportunity to lower labor costs and redistribute benefits. Unions have a contradictory effect on information. The author thanks participants in the Cornell University Collective Bargaining workshop and the Harvard Labor Economics workshop. I especially thank James Medoff for his comments.     

Unions in the 2000 election: A strategic-choice perspective

In the 2000 elections, organized labor mounted a“massive“ political effort. The AFL-CIO spearheaded a program that emphasized both grassroots and“checkbook” politics. Labor 2000, however, represented much more than an attempt to influence elections. Political action, dedicated to a“Working Families Agenda“ became a strategy of choice to elect candidates, influence lawmakers, mobilize union members, and recruit workers into the labor movement. In this paper, I examine Labor 2000 from a strategic-choice perspective. Specifically, I look at the scope and variety of labor's political effort; how labor allocated its political resources; the degree of competition it faced; and the election outcomes. In addition, I examine the effort in terms of its potential for transforming unions. Data from a variety of sources, some of which have not been previously used, are examined to put Labor 2000 into perspective as a strategy. The results indicate that labor did have some success in mobilizing union members politically. However, labor's impact proved insufficient to achieve immediate national election goals. Questions remain about the wisdom of political action as a strategy of choice, especially in terms of its viability as an instrument for institutional revival.     

The effect of unions on employee benefits: Updated employer expenditure results

As a practical matter, employee benefits are probably more important than ever to workers and employers so research on various aspects of benefits continues to be important. A legitimate part of the ongoing research literature is periodically checking the earlier results to see which relationships have remained constant and which have changed. With respect to the connections between labor unions and employee benefits, the theoretical and empirical framework established by Freeman and Medoff’s (1984) two faces of unionism continues to (appropriately) dominate the contemporary research agenda. I thank Michael Lettau at the Bureau of Labor Statistics for his help with the Employer Costs for Employee Compensation data and his hospitality while 1 analyzed these data at the Bureau of Labor Statistics. The Bureau of Labor Statistics bears no responsibility for the author’s analysis and interpretation of the data.     

Male Entry into the Labor Force: Estimates of Occupational Rewards and Labor Market Discrimination*

Causal models of initial occupational rewards for black and white males are developed from the responses of first-year workers in the National Longitudinal Surveys of Labor Market Experience. A comparison of the black and white models shows that while blacks have experienced considerable upward mobility, their income and prestige remain far behind their white counterparts. Two explanations for this racial gap are indicated by the data: (1) blacks begin work with lower levels of key background variables, and (2) racial discrimination in the labor market. Our measurement of racial discrimination in labor market entry accounts for only a small proportion of the gap between black and white levels of rewards; and when compared with earlier research, the data indicate a national trend of decreasing racial discrimination in the labor market.     

The myth of labor’s inequality of bargaining power

This paper argues that the widespread belief in labor’s exploitation and “underpayment” in a free market economy is illogical and lacks a serious empirical foundation. Theories of systematic disadvantage ignore the behavior of entrepreneurs under the profit-and-loss motive and the tendency for risk-adjusted rates of return to equalize. Labor has proven versatile and mobile in the U.S. economy, where technical progress also has been extraordinarily labor-saving. Nor have discrimination (when unaided by the public sector), fluctuations in unemployment, or formal collusions resulted in systematic underpricing of labor services. The author thanks John Allen and Donald Deere for their comments on an earlier draft of this paper. The usual caveat holds.     

The return of international labour migrants in the ESCAP Region

The social phenomenon of massive temporary international labor migration from the ESCAP region has emerged extremely rapidly. Within 10 years, the number of persons from ESCAP countries grew from a negligible one to 3.5 million. Related research and government policies have lagged behind this latest surge in migration. Most research conducted has been small-scale and lacks an analytical or theoretical framework. Policy formulation for temporary labor migration is difficult because most of the rapid growth in the industry has occurred as a result of private efforts, with a minimum of government intervention. It is now difficult, for the government to provide effective regulations or measures to stimulate and assist the process. Regulations on compulsory remittances or overseas minimum wages have proved to be unrealistic and, if not rescinded, are routinely circumvented. The most effective policies to assist return migrants may not be those which are intended to do so, but those which control the earlier stages of the migration process, such as recruitment, working conditions, and banking arrangements. The most valuable policies may also include those affecting education, training, employment, and general socioeconomic growth. Governments are recommended to provide social services for migrants and their families who are experiencing problems, and to institute community programs in areas with a large number of labor migrants. Governmental efforts to promote forms of labor migration beneficial to the workers would be valuable and should include measures to identify overseas labor markets for employing its nationals, government ot government labor contracts, and government participation in joint-venture projects. International migration should be analyzed in the context of theories and social change in order for governments to formulate effective measures for the reintegration of returning workers. Labor migration on the current scale has many social implications for the sending countries; relationships between employers and employees, the government and private sectors, and white and blue collar workers are affected. Social change and technological innovation will become more rapid, women's status and family roles will change markedly, and behavior is likely to become less conformist and more individualistic.     

Labor union coercion: The misuse of the grievance procedure

Labor unions provide security to workers through the use of the grievance procedure. Unions, however, may misuse their power and thereby reduce the security of workers. Such misuse has been documented through Section 8(b)(1)(A) of the National Labor Relations Act, as amended, which outlaws “restraint and coercion” by labor unions. Few cases involving coercion through the use of the grievance procedure were filed during the 1950s and 1960s, but the number of cases began growing in the 1970s, possibly because of the growing legal sophistication of those involved in labor relations. Such cases still number under 15 annually.     

The Impact of Temporary Labor Migration on Mexican Children's Educational Aspirations and Performance1

This article examines how temporary U.S. labor migration by family members and by students affects the educational aspirations and performance of those same students growing up in Mexican migrant communities. Labor migration affects these children in two ways. First it brings remitted U.S. earnings into the household which allows parents to provide more education for their children and reduce the need for children's labor. Higher incomes are also associated with numerous factors that improve the general well‐being of children, as reflected in various indicators including higher school grades. Labor migration also has negative impacts on children. In addition to family stress and behavioral problems with adolescents due to parental and sibling absence, migration provides an example of an alternative route to economic mobility. Children growing up in migrant households have access to information and social networks that reduce their likelihood of migration failure should they choose this alternative to the Mexican labor market. We analyze a unique data set from a stratified random sample of 7600 grammar, junior high, and high school‐level students in a state capital, a large town, and 25 rural communities in a Mexican migrant‐sending state. We find that high levels of U.S. migration are associated with lower aspirations to attend a university at all academic levels. We find, however, a positive relationship between U.S. migration and grades. We conclude that while U.S. migration provides financial benefits that allow children to continue schooling and perform well, it may also reduce the motivation to attain above‐average years of schooling.     

The economic role of immigrant wives in Hong Kong

The objectives of this study were to compare the employment pattern of immigrant wives with native-born wives in Hong Kong, to examine the independent influences of sociodemographic characteristics and the assimilation experience on employment behavior of immigrant wives, and to establish the extent to which immigrant wives' employment is affected by social and demographic factors and conditioned on the assimilation strategy adopted by their families. Data of the 1986 census were used, based on a 1% sample of currently married women 20-44 years old. 5478 women were identified by place of birth and length of residence in Hong Kong and 3214 native-born women were used as a comparison group. Of this 5478, 2018 women were earlier immigrants from mainland China who had lived in Hong Kong for more than 5 years and 246 were recent Chinese immigrants. Labor force participation of the native born was 51.87% and that of China born was 48.89%, however, early immigrants had a rate of participation of 46.84% and recent immigrants had 66.81%. The labor market incorporation of early immigrants showed that 10.28% were self-employed and 13.13% were outworkers, which was in contrast to the native-born, who were more represented in employee occupations. 79.12% of native-born were wage employees compared 69.58% of early immigrants. Immigrant wives were disadvantaged regarding education and vocational training; their wages were substantially lower than those of the native-born women. Immigrant families had an average of 2.2 children, compared to 1.7 for natives. Logit analysis showed that age had a negative relationship with labor force participation, while education had a positive effect, and recent immigrants had a significantly higher labor force participation. Multinominal logit analysis found that more educated and better skilled women were significantly more likely to engage in wage employment. Children in the family restricted women's participation in wage employment.     

‘A load too heavy’: Critical reflections on the child labor problem in Africa's small-scale mining sector

This paper provides an extended analysis of the child labor problem in the artisanal and small-scale mining (ASM) sector, focusing specifically on the situation in sub-Saharan Africa. In recent years, the issue of child labor in ASM has garnered significant attention from the International Labor Organization (ILO), which has been particularly active in raising public awareness of the problem; and, has proceeded to implement policies and collaborative project work aimed at curtailing children's participation in ASM activities in a number of African countries. The analysis concludes with a critical appraisal of an ILO project recently launched in the Talensi–Nabdam District in the Upper East Region of Ghana, which sheds light on how the child labor problem is being tackled in practice in ASM communities in sub-Saharan Africa.     

Violence by U.S. labor unions

During the early 1800s, most violence connected with labor disputes was committed spontaneously by unorganized groups of workers. During the twentieth century, the pattern changed and most violence was caused by workers organized into unions. Although no statistics have been completed on how much violence has been committed by labor unions in the United States until recently, some indication may be obtained by examining National Labor Relations Board charges of violence filed against unions. Theories of striking and violence are discussed and an evaluation of theories on future trends in violence is made.     

Peasants in reserve: temporary West Indian labor in the U.S. farm labor market

In the past 10 years, the British West Indies Temporary Alien Labor Program has received widespread judicial and legislative support and criticism. While sugar and apple producers who import West Indians argue that domestic labor is insufficient to harvest their crops, labor organizations and their supporters maintain that domestic labor is adequate. The resulting labor disputes focus primarily on the issue of whether or not West Indians are displacing US workers or undermining wage rates and working conditions. This article examines the relationships among legal issues surrounding the program, the US farm labor market, and the Jamaican peasantry. It argues that continued imports of foreign labor during times of high domestic unemployment, as well as the varied factors which underlie the continued willingness and ability of Jamaican peasant households to supply workers to US producers, can be most clearly understood from an international and historical perspective, rather than focussing on the needs and problems of any 1 nation.     

EXPLAINING INDUSTRY LABOR PRODUCTIVITY MOVEMENTS

The paper investigates the importance of three shocks at the industry level for explaining industry labor productivity movements; industry demand shocks, supply shocks, and labor supply shocks. The results from vector autoregressions show that the two supply shocks are the main determinants of labor productivity movements, where increases in labor supply are associated with persistently declining labor productivity. Labor supply shocks can explain from 65% to 73% of labor productivity variation at a three-year horizon in the trade and services industries. ( JEL O, O3, J22, L6-L9)     

THE EFFECTS OF EMPLOYMENT PROTECTION ON LABOR TURNOVER: EMPIRICAL EVIDENCE FROM TAIWAN

This paper investigates the effects of employment protection legislation on the rates of hiring, separation, worker flows, job reallocation, and churning flows for the case of Taiwan. Our empirical identification takes advantage of a reform created by Taiwan's enactment of Labor Standards Law, which has substantially increased the costs of firing, and the implementation of the law's enforcement measures. Moreover, our identification also exploits the fact that the stringency of the law's provisions and the intensity of the law's enforcement vary with establishment size. On the basis of the monthly data at the establishment level for the period 1983–1995, we find that Taiwan's Labor Standards Law and its enforcement measures have dampened labor turnover for medium‐sized and large establishments, while that of small establishments was not affected. (JEL J65, J63, J88)     

Union membership,economic rents,and migration behavior

This study represents an extension of the human capital paradigm as it relates to an individual’s decision to migrate. It differs from previous studies by incorporating union membership, a labor market variable, into the model. In effect, the National Labor Relations Act of 1935 granted a monopoly bargaining position to unions. The theoretical implication of a union’s monopoly bargaining position is that union wage levels will increase relative to nonunion wages. The increase of relative wages results in union membership granting a property right that possesses positive net present value and hence reduces an employed union member’s probability of migrating. Additionally, the supra-competitive remuneration of union members results in a surplus of labor supplied to union firms. Employers respond by using quality screening to hire workers from the larger labor pool. As a result, unemployed union members will on average possess higher levels of human capital, which will increase their probability of migrating above that of their unemployed nonunion cohorts.     

The dynamics of the U.S. occupational structure during the 1990s

During the 1990s, the U.S. economy experienced dramatic structural changes, such as the decline in the defense industry following the end of the Cold War, an extraordinary amount of corporate restructuring and downsizing, a dramatic increase in computer usage in the workplace, the adoption of NAFTA, and the emergence of the global economy. These changes would lead one to expect fairly significant upheaval in the U.S. occupational structure. In fact, my findings indicate relatively remarkable stability of the U.S. labor market and its occupational structure. Moreover, many of the changes which have occurred have been beneficial. I thank an anonymous referee for helpful comments. I also thank Steven Hippie, Jay Meisenheimer, and Tiffany Stringer of the Bureau of Labor Statistics of the U.S. Department of Labor for providing some of the data for this study, as well as insight into their appropriate interpretation and use. Research support provided by Dowling College is gratefully acknowledged. The author assumes responsibility for any errors or omissions.     

AFTER TAFT-HARTLEY: The Legal-Institutional Context of U.S. Strike Activity, 1948 to 1980

This article examines how the legal-institutional context created by American labor law has impacted the frequency, issue composition, and economic damage of strike activity since the passage of the Taft-Hartley Act. Emphasis on the legal-institutional context complements conventional perspectives of strike activity which focus on business cycle and political-organizational interpretations. A new labor law index is developed to measure the legal-institutional context, and it is comprised of five components: number of pro-labor laws, National Labor Relations Board unfair labor cases filed, use of antilabor injunctions, labor mediation, and labor arbitration. For the period of 1948 to 1980, high values on the labor law index reduced overall strike frequency, reduced some types of control-related strikes, had no effect on economic strikes, and decreased working time lost to strikes, especially in the monopoly sector. These findings suggest that the legal-institutional context of the post-Taft-Hartley period has served to regulate and delegitimize expressions of labor unrest that most seriously challenge capitalist interests.     

Culture and gender allocation of tasks: source country characteristics and the division of non-market work among US immigrants

Review of Economics of the Household - There is a well-known gender difference in time allocation within the household, which has important implications for gender differences in labor market...