BACK-LOADED WAGES AND ON-THE-JOB TRAINING IN A FRICTIONAL LABOR MARKET

This paper analyzes the coexistence of on-the-job (general) training and on-the-job search in a frictional labor market where firms post skill-dependent labor contracts to preemptively back-load compensation after training. The back-loaded compensation scheme discourages trained workers' efficient job-to-job transition, as if they accumulated relationship-specific capital, which induces overintensified training among more productive firms. The quantitative analysis predicts that the market equilibrium, relative to the efficiency benchmark, gets more skilled workers (training inefficiency) and less output (allocation inefficiency). It further demonstrates that efficiency loss is moderate due to positive externality and can be improved, as search friction is mitigated. (JEL J24, J31, J64)     

CONSTRAINED BY HOURS AND RESTRICTED IN WAGES: THE QUALITY OF MATCHES IN THE LABOR MARKET

This paper examines the explicit loss born by workers who face constraints in their working hours by analyzing differences in actual and desired hours and wages. Men tend to be underemployed while women are evenly split between over- and underemployment. Losses in surplus are generally small, but 10% of underemployed men and women experience losses of more than 34% or 50% of surplus, respectively. The loss measure is also an important determinant in predicting labor market transitions, meaning increases in surplus losses generate a higher probability of changing from workers' present jobs or changing the number of hours. ( JEL J22, J41)     

WAGES, RENTS, AND AMENITIES: DIFFERENCES AMONG WORKERS AND REGIONS

What explains persistent regional earnings differences? This paper argues that regional differences in amenities can account for the wage differences; in contrast, cost of living variations do not account for wage differences, but actually exacerbate them. This conclusion results from a model in which variations in rents and wages are equalizing differences for amenity differences. Empirical results are consistent with the model.     

WAGES, EARNINGS AND HOURS OF FIRST, SECOND, AND THIRD GENERATION AMERICAN MALES

Analysis of 1970 census data for eight ethnic groups indicates that, other things equal, recent immigrants generally receive lower wages and earnings than second generation workers, but second generation workers receive higher wages and earnings than do third. Recent immigrants and third generation men work significantly fewer hours per year than do earlier immigrants and second generation men. These findings are consistent with the hypothesis that increases in U. S. specific human capital over generations are offset by decreases in motivation. The higher motivation of immigrants appears to reflect greater preference for money over family ties, leisure, and easy work as compared with non-immigrants. immigrants.     

OUTSOURCING TYPES, RELATIVE WAGES, AND THE DEMAND FOR SKILLED WORKERS: NEW EVIDENCE FROM U.S. MANUFACTURING

Existing studies on the impact of outsourcing on relative wages and the demand for skilled workers mainly focus on aggregate outsourcing, in which imported intermediate inputs are used as a proxy. We depart from the existing studies by focusing on various types of outsourcing based on the six-digit NAICS U.S. manufacturing data. We show that downstream materials and service outsourcing are skill biased, whereas upstream materials outsourcing is not. We also produce other supplementary results pertaining to the impact of technology, different capital inputs on relative wages, and the demand for skilled workers. ( JEL C33, F14, F15)     

THE TECHNOLOGY FACTOR AND THE EXPORT PERFORMANCE OF U.S. MANUFACTURING INDUSTRIES

The paper examines two central theories advanced to explain the revealed comparative advantage of U.S. industries. The neo-technological account centers on the process of innovation among industries and is represented in the regression analysis by an R&D intensity variable. The neofactor theory advances both human and "physical" capital as important variables in determining countries' comparative advantage. Foreign protection is postulated to affect the export performance of U.S. industries. Generally the results suggest that U.S. revealed comparative advantage is most pronounced in R&D intensive industries that give the U.S. a temporary technological lead in world markets.     

INFORMATION, CAPITALISM AND UNCERTAINTY

This article argues that the changes characterized by many commentators as announcing the 'information age' are better seen, not as heralding a new type of society, but as the continuation, consolidation and extension of capitalism - something which is accompanied by constant upheaval and innovation. The shift from conceiving the 'information society' as a result of technological breakthroughs to one which lays emphasis on the primacy of 'information' itself is observed. The importance especially of informational labour's 'flexibility' is regarded, not as indicative of a new age but of the requirements of globalized capitalism which engenders change the better to consolidate its practices. The instability of life today is ascribed, not to the upheavals resulting from the 'information revolution', but rather to the insatiable dynamic that has long been a distinguishing feature of capitalist enterprise. These processes are examined in terms of the shift from public to private provision of information and in the heightened uncertainty of existence today.     

WAGES AND EMPLOYMENT IN PUBLIC-SECTOR UNIONS

We model the politics of wage and employment determination for unionized public-sector workers who can strike. If the employment level affects the identity of the decisive voter in budget referenda and other elections, then unions may be able to increase wages by increasing employment. We identify conditions under which public sector unionization will lead to increased wages and employment; we also show that a majority of voters may favor unionization. (JEL 545, J51, H4)     

CYCLIC PATTERNS IN WEEKS AND WAGES

An attempt is made to measure the sensitivity of real wages and weeks worked to overall cyclic disturbances using rather refined microdata. While overall results indicate that real wages are "rigid" with weeks worked exhibiting a procyclic pattern, significant contrasts in cyclic patterns are evident between union and nonunion sectors. Furthermore, these cyclic contrasts are generated by worker experience level to ascertain the extent of cyclic variation depending upon years on current job by a worker. An attempt is then made to link these empirical contrasts to patterns that are expected for two theoretical frameworks: an auction market model and an implicit contracting model. This leads to a conclusion that the union sector tends to exhibit implicit contracting characteristics whereas auction market characteristics prevail in the nonunion sector.     

SUBURBAN LABOR MARKETS, URBAN LABOR MARKETS, AND GENDER INEQUALITY IN EARNINGS

This study focuses on the role of labor market location in generating gender inequality in earnings. Specifically, the article examines whether suburban versus urban labor market conditions differentially affect gender-based earnings inequality. Tel Aviv metropolitan area labor force data support the thesis that women's tendency to settle for jobs in the vicinity of home is an exchange between economic opportunities and convenience, to avoid conflict with traditional roles. The cost of staying in the suburban labor market is greater for women than men, and suburban exceeds urban labor market gender-linked economic discrimination.     

FOOD PRICES,WAGES, AND WELFARE IN RURAL INDIA

With soaring food prices in recent years has come alarm about rising poverty in the developing world. Less appreciated, however, is that many of the poor in agricultural economies may benefit from higher wages. This study finds that wages for manual labor in rural India, both within and outside agriculture, rose faster in districts growing more of those crops with large producer price run‐ups over the 2004–2009 period. Based on a general equilibrium framework that accounts for such wage gains, rural households across the income spectrum are found, contrary to more conventional welfare analysis, to benefit from higher agricultural prices. (JEL Q17, Q18, F14)     

ADVERTISING, CONCENTRATION AND PROFITABILITY IN MANUFACTURING

This paper predicts an inverted-LI relationship between concentration and advertising only for oligopolistic industries facing relatively less elastic demand curves. It rejects the inverted-LI theory based on the hypothesis that the large firms collude and lends empirical support to the idea that causation runs from Concentration to advertising intensity. By confirming that the effect of advertising on profitability is significant and greater for industries producing homogeneous goods than for those producing heterogeneous goods, this study fails to support the barriers-to-entry hypothesis.     

THE RELATIVE STICKINESS OF WAGES AND PRICES

While many modern business cycle theories posit the existence of nominal wage and/or output price stickiness, their relative importance remains an unsettled issue. Using a structural VAR model, this paper exploits evidence on the behavior of real wages to assess the relative importance of these two sources of stickiness. The empirical results suggest that a positive shock to aggregate demand causes a significant temporary fall in real wages. This is taken as evidence that sticky wages have played a more important role than sticky prices in transmitting aggregate demand shocks to real economic activity in the post-war U.S. (JEL E32)     

MARKET STRUCTURE AND PRICE-COST MARGINS:A COMPARATIVE ANALYSIS OF U.K. AND U.S. MANUFACTURING INDUSTRIES

This paper reports a comparative study of market structure- performance relations in U. K. and U.S. manufacturing indus- tries. The multivariate regression results support the hypothesis of homogeneity of the links between market structure and the price-cost margin dimension of performance in manufacturing industries of the two countries. Furthermore, the results indicate that the differences in the legal and cultural environments of U.K. and U.S. industries do not significantly affect the pattern of similarity in the links.     

THE ORGANIZATION AND CONSEQUENCES OF SOCIAL PASTS IN CRIMINAL COURTS

This article demonstrates the contributions of Katovich and Couch's (1992) formal theory of social pasts to conceptualizations of social world contexts and processual order (Strauss 1978; 1993). Using interview and observational data from three criminal courts, I focus on the interrelationship of two social world contextual features: (1) the organization of participants' social pasts, and (2) the degree of ideological consensus between participants in terms of sentencing goals. These two factors interact to influence interorganizational relationships in the three courts; and, in combination with individual criminal case characteristics, influence actors' case processing strategies. The article concludes by discussing the implications of the organization of social pasts in criminal courts and organizational arenas in general for the availability and attractiveness of alternative action strategies, as well as the management of uncertainty in organizational decision making. I also suggest several directions for further research.