The minimum wage can harm workers by reducing unemployment

Economists may disagree over how much raising the minimum wage increases unemployment, though few argue that the unemployment effect is zero. According to the standard model, the less the unemployment caused by a minimum wage increase, the less the harm (or greater the good) that results. But by recognizing that minimum wage workers receive fringe benefits, I show that increasing the minimum wage may not cause any unemployment and harms workers because it doesn 't. Furthermore, when there is lumpiness in providing fringe benefits, a minimum wage increase may harm workers by     

Direct and indirect effects of unionization and government employment on fringe benefit provision

The separate influences of unionization and government employment on the provision of two major fringe benefits, pensions and health insurance, are investigated. Each influence is decomposed into a direct effect and an indirect effect through earnings. The sum of these effects often differs in size from estimates that ignore the two distinct effects. Moreover, studies that argue that both unions and governmental employees capture greater fringe benefits focus on the direct effect, yet estimates usually have not isolated this effect.     

Labor union coercion of employees: The use of fringe benefits

In bargaining on fringe benefits, labor unions violate Section 8(b)(1)(A) of the National Labor Relations Act if they restrict benefits to members only. Even if fringe benefits are provided for nonunion members, a violation of the Act occurs if more stringent eligibility rules are required for nonmembers than for members. Sometimes unions deny fringe benefits to union members if fines or dues are not paid, but National Labor Relations Board has ruled that workers are restrained in violation of Section 8(b)(1)(A) if fringe benefits are withheld due to nonpayment of fines or dues.     

Inequality in an OLG economy with heterogeneous cohorts and pension systems

We analyze the consumption and wealth inequality in an OLG model with mandatory pension systems. Our framework features within-cohort heterogeneity of endowments and heterogeneity of preferences. We allow for population aging and gradual decline in TFP growth. We show four main results. First, increasing longevity translates to substantial increases in aggregate consumption inequality and wealth inequality. Second, a pension system reform from a defined benefit to a defined contribution works to reinforce consumption inequality and reduce wealth inequality. Third, minimum pension benefits are able to partially counteract an increase in inequality introduced by the defined contribution system, at a fiscal cost. Fourth the minimum pension benefit guarantee mostly addresses the sources of inequality which stem from differentiated endowments rather than those which stem from heterogeneous preferences.     

Presidential Address: The Faculty Time Divide

The time demands of academic life are examined, drawing on data from a large national sample of faculty. I outline the divide between full-time faculty, who work long hours irrespective of rank or institution type, and part-time faculty, who work at low pay with little job security, status, recognition, or fringe benefits. The expectations of academic life in dual-career couples are hard to reconcile with the demands of parenting. This is a common problem because assistant professors are generally too old to wait until they have tenure to have children. The segmentation of academic life into an overworked core and a marginalized periphery tends to perpetuate gender inequality.     

Trends in Global Gender Inequality (Forthcoming, Social Forces)

This study investigates trends in gender inequality for the world as a whole. Using data encompassing a large majority of the world's population, we examine world trends over recent decades for key indicators of gender inequality in education, mortality, political representation, and economic activity. We find that gender inequality is declining in virtually all major domains, that the decline is occurring across diverse religious and cultural traditions, and that population growth is slowing the decline because populations are growing faster in countries where there is the greatest gender inequality.     

ARE PART-TIME WOMEN PAID LESS? A MODEL WITH FIRM-SPECIFIC EFFECTS

This paper uses data from a survey of child-care establishments to compare part-and full-time wages within two narrow occupations, one high skill and one low skill. Unlike previous studies, it controls for firm-specific effects. We find that when firm-specific effects are accounted for, only the low-skill workers in our sample receive lower wages for working part-time. On the other hand, when compensation is defined to include prorated fringe benefits, establishments appear to compensate both high- and low-skill part-timers at a lower hourly rate.     

Ökonomische und nicht-ökonomische Gefahren für Demokratien

Muller (1995a) claimed that during the 1960s and 1970s countries with (high) income inequality are more likely to face decline in democracy than countries with lower income inequality. This article uses new data to compare the negative impact of two economic determinants (income inequality, inflation) and two non-economic determinants (percent of Islamic population, world system periphery) on democracy. It is found that neither income inequality nor world system periphery does contribute to the explanation of the decline in democracy. Only inflation offers a tentative explanation for decline in democracy. The validity of the results is lessened by sample problems. Especially the data from communist countries appear to be less reliable.     

GENDER,MORTALITY, AND CORPOREAL INEQUALITY

Most previous empirical analyses of gender inequality have focused on modern economic indicators such as income. The advancement of theory on gender stratification requires detailed analysis of indicators with greater endurance and prevalence in world-historical terms. Sex mortality differentials are presented as cross-cultural indicators of corporeal gender inequality, defined as differential access to basic bodily resources for life and health. Indeed, mortality differentials represent a more fundamental form of gender inequality, in that women first must be alive before they may be denied access to other resources such as equal pay. Analysis of United Nations and World Bank data on developed and developing countries evidence the importance of ecological, economic, and familial explanations in determining corporeal gender inequality. Women's familial roles are found to be more important for gender inequalities in death at younger ages, and women's economic roles are more important for death at older ages. Implications of the results for mortality decline and gender stratification theory are discussed.     

Reinterpreting between-group inequality

We evaluate observed inequality between population groups against a benchmark of the maximum between-group inequality attainable given the number and relative sizes of those groups under examination. Because our measure is normalized by these parameters, drawing comparisons across different settings is less problematic than with conventional inequality decompositions. Moreover, our measure can decline with finer sub-partitioning of population groups. Consequently, the exact manner in which one groups the population acquires greater significance. Survey data from various countries suggest that our approach can provide a complementary perspective on the question of whether (and how much) a particular population breakdown is salient to an assessment of inequality in a country. An erratum to this article can be found at     

Population growth,inequality and poverty

In this discussion of population growth, inequality, and poverty, the type of relationships that can be observed in intercountry comparisons are explored, reviewing the findings of several other authors, presenting some new estimates using an International Labor Office data bank, considering some basic conceptual problems, and examining some of the theoretical and empirical issues that call for investigation at the national level. Intercountry comparisons, despite their limitations, appear to be the easiest starting point for empirical analysis. The approach adopted by most researchers has been to select 1 or more population indicators and a measure of national income inequality and to explain intercountry differences in 1 or both of these variables in terms of each other and of other indicators of economic and social development. Underlying this methodology is the assumption that there are aspects of demographic and economic change that are common to all countries included in the study, so that differences between countries give some guide to the likely evolution over time within any 1 country. This can be accepted at best with reservations, but given the scarcity of data on the evolution of inequality over time, a working hypothesis of this type appears unavoidable. But, as many of the factors likely to cause population growth and inequality operate over extended periods of time, a dynamic model is indicated. A simpler model, which pays particular attention to lags and variations over time, may generate new insights. A summary of the results of a new international cross-section analysis set up on these lines is presented. Results suggest that contrary to expectations, reducing population growth does not seem to generate longterm benefits for the poor in this model, though some short term gains are found. Increasing equality does appear to generate some decline in population growth, as well as persistent gains in incomes among the poor, but the reductions in population growth look small when set against the substantial reduction in inequality assumed. The central problem is that inequality and poverty are complex variables conceptually and empirically. 3 major sets of issues are particularly relevant: the nature of the unit of analysis; the reference period; and the conceptualization and measurement of welfare in relation to inequality and demographic change. In interpreting empirical findings, it is necessary to be aware of the different aspects of inequality and the correspondingly varied links with demographic change. The issues raised by the effects of inequality on population growth are distinct from those of population growth on the generation of inequality, and these are separated. Future research possibly will be most productive if it concentrates on the multiple roles of population growth in the transformation of systems of production.     

“Family-Friendly” Fringe Benefits and the Gender Wage Gap

Evidence suggests a large portion of the gender wage gap is explained by gender occupational segregation. A common hypothesis is that gender differences in preferences or abilities explain this segregation; women may prefer jobs that provide more “family-friendly” fringe benefits. Much of the research provides no direct evidence on gender differences in access to fringe benefits, nor how provision affects wages. Using data from the National Longitudinal Survey of Youth 1979, we find that women are more likely to receive family-friendly benefits, but not other types of fringe benefits. We find no evidence that the differences in fringe benefits explain the gender wage gap.

Have unions impeded growing wage dispersion among young workers?

Wage inequality is examined for young males over the period 1980–1993. While wage inequality increased substantially for nonunion workers over this period, wage inequality increased only modestly for union workers. In part, this difference results from divergent trends in skill prices—returns to skill rose in the nonunion sector but contracted slightly in the union sector. In particular, returns to education increased sharply in the nonunion sector while remaining stagnant in the union sector. At least for young workers, these findings suggest that unions have been largely successful in resisting market pressures for greater wage inequality. We also uncover evidence suggesting that, as relative returns to education decline in the union sector, highly educated young workers become less likely to choose union employment. We acknowledge the helpful comments of Dek Terrell, Steve Trejo, and Carol Horton Tremblay.     

Why unions support mandated benefits

A complete explanation for union support of mandated benefits must recognize that (1) unions promote the interests of their members primarily by restricting entry into labor markets and (2) those restrictions reduce the competitive advantage which unionized firms realize from efficiently providing fringe benefits. Only by exerting pressure on unionized firms to provide particular fringe benefits and then lobbying government to mandate those benefits at nonunion firms can unions hope to overcome a problem of their own creation.     

RACIAL INEQUALITY IN MEN'S EMPLOYMENT AND RETIREMENT EARNINGS

Data from the New Beneficiary Study for currently married men who began receiving social security benefits in 1980–1981 indicate that the racial earnings gap is greater in retirement than it was in employment. Racial differences in employment and pension earnings are specified by education and employment status. There is, however, a significant net racial effect in predicting social security earnings. Furthermore, education interacts with race in predicting asset earnings, which constitute the major source of racial inequality in retirement. This analysis highlights not only the enduring problem of poverty for African Americans and Latinos who are "working off the books,' without social security benefits, but also the possibility of a "glass ceiling' that limits access to assets for highly educated nonwhites.     

The Voice Effect of Unions: Evidence from the US

Union voice is part responsible for the increased provision of fringe benefits to union workers and is particularly responsible for the redistribution of benefits towards the preferences of the average union worker. Family friendly benefits are valued more by females so union voice should increase the likelihood that provision of family friendly benefits increases in female dominated union workplaces. Individual level data from the US is used to examine whether union voice exists in this capacity. The paper’s results suggest that female dominated workplaces do tend to have increased access to most family friendly benefits, serving as further evidence that union voice exists in the US.     

Reproducing Inequality in Sociology

This essay discusses some mechanisms reproducing inequality in the discipline of sociology. I argue that credit for communally produced ideas accrues to individual and that the discipline is governed by a kind of “racial contract” partially governing which ideas and individuals are included. As a discipline centrally concerned with inequality and stratification, I argue sociologists should employ greater reflexivity when thinking about how disciplinary practices reproduce structures we typically critique in other contexts.     

Mandated benefits and entry-level employees and employment

Entry-level employees, particularly those with little education and skill, are often not provided fringe benefits that are included in the compensation packages of their more skilled and experienced counterparts. Under the rubric of improving the well-being of entry-level employees, Congress is considering proposals requiring employers provide speccific benefits to employees. Unfortunately, by substituting political directives for market decision making, mandated benefits impose economic inefficiencies, and most of the resulting costs are borne by the entry-level employees purportedly most helped by mandated benefits. The author thanks Ronald Warren for helpful comments. The customary caveat applies.     

Declining inequality? The changing impact of socio‐economic background and ability on education in Australia

The paper addresses several debates surrounding the reproduction of socio-economic inequality: (i) the persistent inequality thesis, which maintains that despite the increases in educational participation socio-economic inequalities in education have not declined; (ii) the related thesis of maximally maintained inequality, which proposes that socio-economic inequalities decline only when participation levels for the most privileged socio-economic group approach saturation levels; (iii) the meritocracy debate on the importance of ability vis-à-vis socio-economic background and changes in its influence over time; and (iv) the effect of policy changes on socio-economic inequalities in education. These issues are addressed using data from six Australian youth cohorts born between 1961 and the mid-1980s.     

Baby booming inequality? Demographic change and earnings inequality in Norway, 1967�C2000

In this paper, we demonstrate how age-adjusted inequality measures can be used to evaluate whether changes in inequality over time are due to changes in the age-structure. To this end, we use administrative data on earnings for every male Norwegian over the period 1967–2000. We find that the substantial rise in earnings inequality over the 1980s and into the early 1990s, is to some extent driven by the fact that the large baby boom cohorts are approaching the peak of the age–earnings profile. We further demonstrate that the impact of age-adjustments on the trend in inequality during the period 1993–2000 is highly sensitive to the method used: While the most widely used age-adjusted inequality measure indicates little change in inequality over this period, a new and improved age-adjusted measure suggests a decline in inequality.