The Educated Russian's Curse: Returns to Education in the Russian Federation during the 1990s

Abstract. This paper uses a representative sample of the Russian Federation, the Russian Longitudinal Monitoring Survey, to estimate the returns to education in this ex‐communist country. We tackle this classic issue in labor economics with the realistic expectation of obtaining results for Russia comparable in quality and reliability to those available in developed countries and other economies in transition. Using standard regression techniques we find that the returns to education in Russia are quite low compared with those reported in the literature on countries throughout the world, in almost no specification reaching higher than 5 per cent. Moreover, there is virtually no improvement in returns to education in the 1992–99 period, a result somewhat at odds with other studies using Russian data from similar time periods. When we instrument our main regressor using policy experiments from the 1960s, we find comparable results. We also perform a selectivity correction and discover even lower returns to education for men, although they become slightly higher for women. Additionally, we find extremely low returns to tenure, which can even become negative in certain specifications.     

Analysing the Gender Wage Gap (GWG) Using Personnel Records

We use monthly personnel records of a large German company for the years 1999–2005 to analyse the gender wage gap (GWG). The unconditional GWG is 15 per cent for blue‐collar and 26 per cent for white‐collar workers. Different returns to entry age explain a substantial part of the GWG as well as segregation of men and women in different hierarchical levels. The relative GWG increases with increasing tenure for blue‐collar but declines for white‐collar workers. Taking into account the different impact of general and firm‐specific human capital on white‐collar and blue‐collar occupation, this is consistent with theories of statistical discrimination.     

Why is the Return to Training So High?

Abstract. Cross‐sectional results show that training increases wages by 5 per cent. This return is on a par with the return to 1 year of education. Considering that the average duration of training is very short, this result is strange and needs further examination. After leaving out the importance of measurement error, we control for accumulated stock of firm‐specific skills, unobserved heterogeneity in wage levels, heterogeneity in training returns, and heterogeneity in wage growth. By this we manage to reduce the return considerably. Unobserved heterogeneity in wage levels is the most important contributor to the ‘too high’ returns to training.     

Public Sector Wage Premium in Canada: Evidence from Labour Force Survey

Although previous research has pointed to a public/private sector wage gap for men and women in Canada, the extent of this gap has not been measured in recent years. Using data from the Canadian Labour Force Survey for September 2008, and using an endogenous switching regression framework to control for self‐selection, I find that both men and women earn a wage premium in the public sector in Canada, although the premium is higher for women. The pure wage premium or economic rent that public sector workers receive relative to their counterparts in the private sector is $1.09, or 5.4 per cent for men and $3.15, or 20 per cent for women. An analysis of selection in the pubic/private sector reveals that public sectors workers are ‘positively selected’ on observables and consist of the ‘cream of the crop’.     

Employment Transitions after Motherhood in Spain

Abstract. This paper investigates transitions from employment to non‐employment and downward occupational mobility after motherhood in Spain. Around 40 per cent of Spanish women who were at work 1 year before childbearing leave employment, most permanently, and one‐third of these exits move to unemployment. The probability of staying on at work after birth is reduced with the rise of fixed‐term contracts and increased with experience and level of education. Downward occupational mobility is not common amongst women remaining employed since they do not switch to part‐time jobs.     

Differential Overeducation in East and West Germany: Extending Frank's Theory on Economic Returns Changes the Picture of Disadvantaged Women

We test the theory of differential overeducation which predicts that women and particularly partnered women are more affected by overeducation than men. Our OLS and FE estimations based on German SOEP data confirm that women indeed exhibit more years of excess education in both regions. Women's higher educational mismatch accounts for 5 pp of the West German pay gap. However, women suffer lower wage penalties from overeducation than men in both regions and, for partnered people, higher female wage penalties vanish in the FE estimations. Hence, women are more rationed than men concerning overeducation magnitude, confirming Frank's theory, but rather less disadvantaged with respect to economic returns.     

Does Rent‐sharing Profit Female and Male Workers? Evidence from Israeli Matched Employer–Employee Data

This paper analyses the impact of workplace characteristics on individual wages based on a unique cross‐section matched employer–employee data set for the Israeli private manufacturing sector in 1995. Specifically, we examine the effects of the interaction between profit‐sharing and wages on the gender wage gap. The empirical findings show that individual compensation is significantly and positively correlated with firms’ profits‐per‐employee, even when controlling for all of the following: group effects in the residuals, individual and firms’ characteristics, industry wage differentials and endogeneity of profits. Wage–profit elasticity is found to be 11 per cent and it does not significantly differ between genders. With respect to the overall gender wage gap (on average women earn 28 per cent less than men), the results show that within firms there is no gender discrimination and that 12 per cent of this gap can be explained by the wage–profits profile and by the fact that women are more likely to be employed in less profitable firms than men.     

The future pattern of U.K. share ownership

This article reports the present pattern of ordinary share ownership in the U.K. and forecasts the future pattern of share ownership towards the end of the present century. The authors forecast that institutional shareholders will own 50 per cent of U.K. registered and managed companies by 1977 and that they will own 68 per cent by 1990. Holdings by individuals, executors and trustees will fall from 47·4 per cent in 1970 to 34 per cent in 1977 and 14 per cent in 1990.     

THE EFFECT OF EMPLOYMENT PROTECTION ON WORKER EFFORT: ABSENTEEISM DURING AND AFTER PROBATION

Employment protection systems are widely believed to generate distortions in firms' hiring and firing decisions. However, much less is known about the impact of these regulations on workers' behavior. In this paper we provide evidence on the latter question using data from a large Italian bank. Our analysis is based on weekly observations for 545 men and 313 females hired as white‐collar workers between January 1993 and February 1995. These workers begin to be protected against firing only after the 12th week of tenure, and we observe them for one year. We show that—particularly for men—the number of days of absence per week increases significantly once employment protection is granted at the end of probation. This suggests that the provision of employment protection causes the increase in absenteeism. Alternative explanations based on career concerns or on learning about social norms would predict a smooth relationship between absenteeism and tenure instead of the observed discrete jump. This consequence of employment protection seems to have been neglected in European policy debates so far. (JEL: J2, D2, D8, M5)     

European competitiveness: Bargaining between boom and gloom

The newly-renamed European Union is in crisis from economic weakness and political claustrophia. Ralf Boscheck argues that, in addition to a suggested ‘New Founding Contract’, broad-based development of the EU requires that priority is given to adjusting competitive specialization and to centralizing political power. The management of internal and external bargaining is critical. per cent, and 19 per cent respectively. EUROSTAT (1994).     

Quantitative Risk Assessment for Bovine Spongiform Encephalopathy in Low- or Zero-Prevalence Countries: The Example of Norway

A predictive case-cohort model is applied to Norwegian data to analyze the interaction between challenge and stability factors for bovine spongiform encephalopathy (BSE) during the period 1980-2010. For each year, the BSE risk in cattle is estimated as the expected number of cases. The age distribution of expected cases as well as the relative impact of different challenges is estimated. The model consists of a simple, transparent, and practical deterministic spreadsheet calculation model, in which the following country-specific inputs are entered: (i) annual imports of live cattle and meat and bone meal, (ii) age distribution of native cattle, and (iii) estimated annual basic reproduction ratio (R(0)) for BSE. Results for Norway indicate that the highest risk of BSE cases was in 1989, when a total BSE risk of 0.13 cases per year was expected. After that date, the year-to-year decrease in risk ranged between 3% and 47%, except for a secondary peak in 1994 at 0.06 cases per year. The primary peak was almost entirely (99%) attributable to the importation of 11 cattle from the United Kingdom between 1982 and 1986. The secondary peak, in 1994, originated mainly from the recycling of the U.K. imported cattle (92%). In 2006, the remaining risk was 0.0003 cases per year, or 0.001 per million cows per year, with a maximal age-specific incidence of 0.03 cases per million per year in 10-year-old cattle. Only 15% of the cases were expected in imported cattle. The probability of having zero cases in Norway in 2006 was estimated to be 99.97%. The model and results are compared to previous risk assessments of Norway by the EU.     

The transformation of a railroad

William B. Johnson is a Chicago Railroad magnate who has created a reputation for making railways profitable. His own railway, Illinois Central Gulf, has roughly the same track mileage, freight loading and passenger figures as British Rail. The difference is that it runs on a tenth of the staff, and since 1966 has generated pre-tax profits of more than $200m. in 10 years a compound growth rate of 20 per cent a year and profits have averaged a 16 per cent rise each year. In this article, William Johnson explains how he developed his railway into a $1bn. conglomerate, IC Industries Inc.     

An economic model of world energy 1900–2020

This report presents a model of the supply and demand for the world's energy during the period from 1900 to 2020. This model leads to the conclusion that even without new kinds of energy sources becoming practical, world energy demand can be met during the next 50 years with only a gradual increase in energy costs. Assumptions with respect to exhaustion of reserves that I regard as mildly conservative lead to a demand that can be satisfied by a 1.5 per cent per year energy price increase. This would raise the percentage of world GNP devoted to primary energy from the present 3–4 per cent in the year 2020. Eliminating per capita economic growth would reduce the required annual price increase only from 1.5 to 1.8 per cent. Eliminating normal technological progress in existing energy technologies would increase the required annual price increase from 1.5 to 2.7 per cent. The model shows oil and gas reaching their maximum share of the energy market during the 1980's. By 2020 approximately 50 per cent of all energy comes from nuclear power.The model provides a framework for the analysis of the world energy market under a wide variety of assumptions. In particular, the model allows explicitly for assumptions about technological progress, economies and diseconomies of scale, and the rate of substitution of cheaper energy sources for more expensive ones.     

The Structure of Wages by Firm Size: A Comparison of Canada and the USA

Cross‐country comparisons of the skill premium between USA and Canada show differences in the returns to higher education between the two countries since the 1980s. This paper analyses whether such differences could be related to differences in skill distribution and worker sorting across firm size between the two countries. Estimation of the wage structure by size for male non‐unionized workers in the private sector reveals that selectivity effects on wages are present and similar in both countries. There are significant and substantial cross‐country differences in the returns to education among large firms, especially for younger workers.     

Corporate Responsibility and Compliance with the Law: A Case Study of Land,Dispossession, and Aftermath at Newmont's Ahafo Project in Ghana1

An important part of responsible business practices is compliance with the law. This article details what actually happens when the laws of the host country fail to ensure adequate protection. The focus here is on land dispossession and loss of livelihood in relation to a gold mine project in central Ghana. How is it that a well‐known international company—Newmont—with its own corporate social responsibility (CSR) statements sets up a project in the year 2003 that displaces subsistence farmers from their land without compensating in cash or with replacement land? The analysis identifies the factors that lead the company to not compensate farmers for their lost land: cost‐cutting, strict adherence to the law, CSR commitment that was new and not internalized, complexities of the Ghanaian land tenure system, peer pressure to preserve the status quo, selection of an “old‐school” CSR manager, and the inadequacy of Ghanaian mining law to account for relatively novel, “open‐pit” mining techniques. However, the specter of famine raised by civil society activism, the involvement of the International Financial Corporation, and a better qualified CSR team constitute another set of factors that lead to a comprehensive package of livelihood improvement measures. There is a contrast between the complexity, long‐term, and advanced type of assistance Newmont currently envisages and the backward, short‐term, formalism, and brutality of denying compensation for land back in 2003. This research is based on the extensive documentation Newmont makes available on its web site, interviews conducted in Ghana, and literature research.     

Comprehensive Education for the Unemployed — Evaluating the Effects on Unemployment of the Adult Education Initiative in Sweden

Abstract. This paper evaluates the effects on unemployment in Sweden of the Adult Education Initiative (AEI) which during its run from 1997 to 2002 offered adult education to the unemployed at compulsory or upper secondary level. The AEI is compared with the vocational part of Labor Market Training (LMT) using unemployment incidence and unemployment duration as outcome variables, both measured immediately after completion of the programs. For unemployment incidence, selection on unobservables is taken into account by using a bivariate probit model. The analysis of unemployment duration considers both selection bias and censored observations. The results indicate lower incidence following participation in the AEI, but also — significant at the 10 per cent level — longer duration.     

Finding gender advantage and disadvantage: Systematic research integration is the solution

In this article, we respond to Vecchio's [Leadersh. Q., 14 (2003)] critique of Eagly and Carli's [Leadersh. Q., 14 (2003)] arguments concerning female leaders' relative advantage and disadvantage. We support Eagly, Johannesen-Schmidt, and van Engen's [Psychol. Bull., 95 (2003) 569] conclusions about leadership style and show that the areas of leadership style in which women exceed men are associated with gains in leader effectiveness, whereas the areas in which men exceed women have negative or null relations to effectiveness. We point out flaws in Vecchio's understanding of the methodology by which researchers integrate research findings across studies and elucidate several essential principles of valid research integration. Our analysis strengthens Eagly and Carli's conclusion that female leaders, relative to male leaders, are correctly described as possessing both advantage and disadvantage.     

Forecasting demand for food in Libya—using confidence limits

Many developing countries are not self-sufficient in food production and they depend on food imports. In order to plan imports well in advance, the demand for food must be forecasted. If the forecasts are too low, the people suffer. On the other hand if the forecasts are too high—the food being a perishable commodity—resources of the country are wasted. The Food and Agricultural Organization of the United Nations (FAO) undertakes such forecasts occasionally. The FAO however links the food consumption to the income of a country and then just assume future income. Such forecasts have no scientific validity and could both fall short or be grossly excessive. In this study, the methodologies of Time Series and Regression Analysis are combined to avoid any guesses. Then confidence intervals are built so that it can be stated, e.g. with 95 per cent confidence that a nation will not eat more than the amount specified. A comparison of costs is made and it is shown that a country can save millions of dollars through the method of statistical confidence limits rather than by adding arbitrary quantities to means and averages. Finally savings possible in some other developing countries, by adopting the proposed method, are tabulated.     

Reservation Wages: Explaining Some Puzzling Regional Patterns

We use the Italian Labour Force Survey and the European Household Panel Survey to analyse the distribution of the reservation wages reported by job‐seekers. In Italy, reservation wages appear to be higher in the South — the low‐income and high‐unemployment area of the country — than in the North and Centre. A similar, rather counterintuitive, pattern can also be found in Finland, France, and Spain. First, we show that the way in which these data are commonly collected generates double‐selection bias. Second, we show that this bias has a strong effect on the estimation of the geographical pattern of reservation wages in many countries. The size of this bias is substantial in Italy. When controlling for it, reservation wages are at least 10 per cent higher in the North and Centre than in the South.     

Swedish Chemical Regulation: An Overview and Analysis

This article begins with a review of the regulation of chemicals in Sweden over the past 30 years, focusing particularly on the 1997 Government Environmental Quality Bill, which called for a toxic-free society by the year 2020. The second part of the article analyzes why Sweden has taken this route. The third and final section discusses Sweden's present role in formulating present EU chemical regulation, such as the recent EU Chemical White Paper, and hypothesizes future impacts of Swedish chemical regulations on the EU itself.