Agency costs,property rights,and the evolution of labor unions

Collective bargaining requires that an agent represent workers. This paper examines the implications for the trade union movement of the resulting agency costs. Without transferable rights in the union, union members lack the means and incentive to bring forth the innovative agent controls common to the modern corporation. Considerations of the bargaining strengths of employers and employees, each represented by an agent, provide an explanation of the simultaneous decline of private sector union membership (corporate share holders have been more successful at lowering agency costs) and growth of public sector union representation (where the union official, a “double agent,” serves the interest of both employee and bureaucratic employer). The authors acknowledge the helpful remarks Donald L. Martin whose earlier research on property rights in unions inspired this effort. Don Bellante’s work was supported by a grant from the Research Committee of the College of Business Administration, University of South Florida.     

The labor market costs of conflict: closures, foreign workers, and Palestinian employment and earnings

In this paper, we provide a lower bound estimate of the labor market costs of the Israeli–Palestinian conflict. The conflict is quantified by the number of overseas foreign workers in the Israeli labor market and the frequency of temporary closures of the West Bank and Gaza Strip. IV estimates, which exploit a source of exogenous variation in the number of overseas foreign workers, yield significant negative effects of the conflict on Palestinian employment rates in Israel and monthly earnings. Our cost-of-conflict estimates are also relevant for the literature on the economics of immigration.     

Medicare Privatization and the Erosion of Retirement Security

This paper describes initiatives to privatize the Medicare program over the last 10 years and the implications of these initiatives for the future of retirement security. Our analysis focuses on the privatization provisions of the Medicare Modernization Act, which is largely designed to benefit the corporate health care sector without containing costs or significantly reducing the threat of rising health care costs to the economic security of current and future retirees. In fact, as designed, the Medicare Modernization Act is likely to increase the threat to retirement security in the years ahead. We conclude with a series of policy alternatives to the neoliberal agenda for the privatization of Medicare.     

The labor supply effects of child care costs and wages in the presence of subsidies and the earned income tax credit

This paper uses CPS and SIPP data between 1990 and 2004 to examine the effects of child care expenditures and wages on the employment of single mothers. It adds to the literature in this area by incorporating explicit controls for child care subsidies and the EITC into the estimation. Doing so provides an opportunity to examine mothers’ sensitivity to prices and wages net of policies that influence these amounts. Results suggest that lower child care expenditures, higher wages, and more generous subsidy and EITC benefits increase the likelihood of employment. Allowing the impact of child care subsidies and the EITC to vary with expenditures and wages reveals substantial heterogeneity. In particular, the largest labor supply effects of child care subsidies are generated for mothers with higher child care costs, while the largest labor supply effects of the EITC are found for mothers with lower wages.     

Women's Welfare and Social Security Privatization in Mexico

Several Latin American countries have fully or partially privatizedtheir public pensions since the 1980s. In 1995 Mexico privatizedits public pension system, including a shift from a definedbenefit to defined contribution system based on privately administeredindividual accounts. This article uses feminist criteria toevaluate the gender impact of welfare regimes and concludesthat the Mexican pension privatization will have a negativeeffect on women’s welfare in old age.     

Privatization and Public Enterprise Performance in Developing Countries

Book reviewed in this article: Adjusting Privatisation. By Christopher Adam, William Cavendish and Percy S. Mistry Public Enterprises in Kenya. By Barbara Grosh     

Privatization of government services: Pressure-group resistance and service transparency

Even when efficiency gains can be expected from contracting out municipal services, it surprisingly rarely occurs. Political pressure by interest groups, especially unions, is usually assumed responsible. We argue that the effectiveness of such pressure is actually a function of a service’s “transparency,” which determines voter’s knowledge of the quality and cost of the service as well as the tax burden. A model is presented of the interplay between union opposition to contracting and service transparency. Policies are offered to increase transparency and make contracting optimal for governments.     

Privatization and Foreign investments: The Case of Serbia and Montenegro

The paper analyzes the privatization process with the participation of foreign investments in countries in transition. Privatization is a necessity in transition countries as a prerequisite of the move to a market economy. Foreign investments are of great importance for the economies of the transition countries, not only to inject necessary capital but also to provide access to new technologies, new markets, and organizational and marketing expertise. For the successful initiation and implementation of these processes, some basic requirements are to be met; namely, to assure more adequate protection of property rights and upgrade legislation related to privatization and foreign investments.     

Contesting Water Rights: Collective Ownership and Struggles against Privatization

The post‐1980s have seen increasing struggles over rights to water. Water rights have involved intense protests and campaigns against privatization of water including bottling of water and advocacy for citizens control of water. We review scholarly work to focus on four main aspects: the complexities intertwining globalization processes, the state, and water rights; collective ownership of water resources; peoples’ participating in managing and using water; and the campaigns against privatization which have emerged in both the developing and developed world in different ways. The conclusion calls for adopting a social movement lens to examine the struggles for water rights by providing some lead research questions around the macro and micro level theoretical approaches.     

Privatization of Refuse Removal and Labor Costs*

We examine the labor-cost savings associated with privatization by comparing earnings and employment trends of public and private sector refuse workers. Findings suggest that high union earnings for workers in the public sector are a source of labor-cost savings in the refuse industry. Evidence on job changers does not indicate that earnings for this group of workers are a compensating differential. Metropolitan area employment findings suggest that municipalities are less likely to use union refuse workers in the public sector when a relatively small percentage of area residents belong to a union.     

我国公用事业民营化的风险与政府责任

为改变我国公用事业领域政府垄断经营的模式,提高公用事业产品供给的效率和质量,近年来我国公用事业进行了民营化改革。但在公用事业民营化过程中存在两大风险:一是公用事业由政府垄断经营变成企业垄断经营的风险;二是政府设租机会增加的风险。为了有效地化解这些风险,可以在企业取得公用事业经营权之前和之后两个阶段,采取强化政府监管责任的防范措施。     

Deregulation and labor earnings

Cross-sectional data drawn from the March CPS from 1968 to 1988 and the May CPS from 1973 to 1988 are used to estimate the impact of deregulation on labor earnings in trucking, telephones, bus transportation, airlines, and railroads. Both average differentials and union-nonunion differentials are computed. Contrary to popular belief, deregulation does not reduce earnings in many of these industries. Implications for theories of regulatory impact are discussed.     

Shared labor and love

The study on job sharing couples and employers in academia found that, for the couples, the shared and flexible work schedule is conducive to increased cooperation and sharing of work and domestic-related activities, independent of gender, and to enhanced intimacy. Because of how the couples use their “surplus” time, they are working more, not less. Employers recognize the increased productivity, but tend to attribute it to their special couple(s) and not to the alternative work structure. Many employers resist job sharing because part-time work is not considered professional.