Competition of politicians for wages and office

We examine a model in which two politicians compete for office and for wages. Their remunerations are either set by the public or are offered competitively by the candidates during campaigns. Our main finding shows that competitive wage offers by candidates lead to lower social welfare than remunerations predetermined by the public, since wage competition may lead to higher wage costs or to the election of less competent candidates. I would like to thank Alexandrina Braack, Peter Bernholz, Robert Dur, Amihai Glazer, Volker Hahn, Stephan Imhof, Verena Liessem, Christian Schultz, Otto H. Swank, conference participants at the annual meeting of the Public Choice Society 2000, the annual conference of the Royal Economic Society in Durham 2001, the annual congress of the European Economic Association 2001 in Lausanne, seminar participants in Heidelberg and at the University of California, Irvine, and two referees for their valuable suggestions and comments.     

Electoral competition, incentive contracts for politicians and unknown preferences

When reelection is uncertain, the election mechanism may provide insufficient incentives for politicians to implement socially desirable policies. In this paper, we show that threshold contracts that the candidates themselves offer during the campaign can help to alleviate the problem, even if the preferences of the candidates are unknown to the public. A threshold contract stipulates a policy space in which the implemented policy must lie for an elected candidate to have the right to stand for reelection.     

Ethnic appeal: A self-defense tool for Kenyan politicians

So far, analyses of apologetic rhetoric strategies as used by individuals or organizations to respond to accusations of wrongdoing have been concentrated in the West. An analysis of political apologia in an African setting – in this case Kenya – reveals that while Kenyan politicians have used denial, victimization, mortification, and counterattacking among other self-defense strategies, one particular strategy emerges as the most commonly used by Kenyan politicians – ethnic appeal.     

On-the-job training and starting wages

Human capital theory predicts that training should reduce starting wages, yet this rela-tionship remains empirically undocumented. Estimation of how training affects wages must control heterogeneity bias. I do this by estimating firstdifference starting wage regressions on a sample of workers from the Employment Opportunities Pilot Project (EOPP) data. I find that on-the-job training has a statistically significant effect on starting wages.     

The wages of regulation

This paper relates the growth of relative wages of government scientists and other federal employees to the growth of regulation during the 1970s. A theoretical model of bureaucracy provides a linkage to data that suggest that rents were generated during the period of analysis and that at least part of those rents were paid to specialized factors in government. The opinions expressed are those of the author and do not necessarily reflect the opinions of the Commission, Commissioners, or staff of the FTC.     

Minimum wages and poverty with income-sharing

Textbook analysis tells us that in a competitive labor market, the introduction of a minimum wage above the competitive equilibrium wage will cause unemployment. This paper makes three contributions to the basic theory of the minimum wage. First, we analyze the effects of a higher minimum wage in terms of poverty rather than in terms of unemployment. Second, we extend the standard textbook model to allow for income-sharing between employed and unemployed persons in society. Third, we extend the basic model to deal with income sharing within families. We find that there are situations in which a higher minimum wage raises poverty, others where it reduces poverty, and yet others in which poverty is unchanged. We characterize precisely how the poverty effect depends on four parameters: the degree of poverty aversion, the elasticity of labor demand, the ratio of the minimum wage to the poverty line, and the extent of income-sharing. Thus, shifting the perspective from unemployment to poverty leads to a considerable enrichment of the theory of the minimum wage.      

The employment and wages of legalized immigrants

"This article analyzes the employment and wages of recently legalized immigrants [in the United States] using the Legalization Application Processing System (LAPS) file, an administrative file based on the individual records of amnesty applicants, and draws comparisons with a sample of the foreign-born population from the Current Population Surveys of 1983, 1986 and 1988. Compared to the total foreign-born population, the legalized immigrant population differs in four important respects that bear on labor market position: 1) a younger age structure; 2) a less balanced gender composition; 3) a greater representation of Latin Americans; and 4) few years of U.S. residence. LAPS data reveal high rates of labor force participation among legalized immigrants, which exceeded the rates of the foreign-born population by approximately 5 and 17 percent for men and women, respectively."     

Patterns of union membership and relative wages

This paper, using the Panel Study of Income Dynamics, examines the effects of union membership on the wages of white males. The empirical relationship between current wage and union status is estimated controlling for union status in years before and after the current year. The resulting status profiles are four years long in contrast to one or two years used previously. Results indicate that wage changes experienced when workers join or leave unions vary significantly and systematically across these profiles. For example, a status change that appears to be long-term is associated with larger absolute wage changes than short-term changes in status. The authors thank Jeff Moore for comments and suggestions on an early draft of this paper and express special appreciation to John Raisian for his painstaking and valuable review of a recent draft. We are, of course, responsible for remaining errors.     

Voluntary contributions and wages in nonprofit organizations

Voluntary work provides a major source of labor for many nonprofit organizations. Consequences of volunteers and paid staff working alongside each other in nonprofits are well documented. This article contributes to this strand of literature and investigates whether the presence of volunteer work influences paid employees' wages in nonprofit organizations. We estimated a multilevel wage equation accounting for personal characteristics of workers and characteristics of nonprofits. The analysis revealed that nonprofit organizations engaging volunteers pay lower wages to their employees. Our findings contribute to the understanding of wage‐setting behavior of nonprofits and improve the methodological approach of empirical research in this field.     

Unemployment,union density,and wages

We investigate, both theoretically and empirically, whether long-run industry unemployment rates modify the wage impact of union density on the earnings of members. Our theory suggests that the density effect increases as unemployment increases. Our empirical estimates use wage equations exclusive and inclusive of unemployment and of the interactive effect of unemployment and density in influencing wages. Based on a 1985 sample of manufacturing production workers, our findings indicate that the wage effect of union density for union workers as usually measured is only 41 percent as large as the effect when unemployment is in the model.     

Regional wages and subjective measures of employment opportunities

We utilise a rich set of regional labour market variables to explain regional variation in Norwegian manufacturing wages. In particular, regional indicators of labour market conditions are computed from survey data in which respondents are asked to evaluate local employment opportunities. We find that average reported satisfaction with local job prospects and other survey-based indicators perform better in regional wage equations than traditional labour market variables, including the regional unemployment rate. Our results suggest that subjective measures of employment opportunities provide useful information about wage pressure.     

Tasks,occupations and wages in OECD countries

This article investigates the links between earnings, human capital and job tasks, using internationally comparable information from the OECD Survey of Adult Skills. The authors use the theoretical framework developed by Autor and Handel (2013) and extend their empirical results to 21 OECD countries. The data allow for a richer characterization of workers' human capital by including both educational attainment and a measure of cognitive skills. Their findings confirm the predictive power of job tasks in explaining wage differences, both between and within occupations, and provide empirical support for the model's prediction in the vast majority of countries.     

Unionism and the dispersion of wages among blue-collar women

Data from the 1973–1975 Current Population Surveys is used to examine the impact of unionism on wage dispersion among blue-collar women. The methodology employed in Freeman (1980) is used as a point of departure for this investigation, which disaggregates the results by sex. The study presents evidence that indicates the impact of unionism on the dispersion of earnings differs across sex. The study also examines whether the differential results occur because of differences in the types of jobs held by nonunion men relative to nonunion women and finds support for this hypothesis. The paper has benefited from discussions with and comments from Eric Bond, Barry Hirsch, Karen Pasborg, and an anonymous referee.     

Relative wages and exit behavior among registered nurses

I examine the exit decision of registered nurses using the longitudinal data files generated by the March Current Population Surveys (CPS) from 1983 through 1994. By examining the wages of workers outside of nursing, a measure of the reservation wage is constructed and related to the decision to leave nursing, either for an alternative job or to exit employment. My results indicate that nurses respond to outside wage opportunities. A one standard deviation decrease in the difference between the actual and predicted log wage results in an 8 percent increase in the exit of nurses. Secretaries, however, are shown to have a much greater sensitivity to outside wages due to the lower degree of occupation-specific training required for secretarial jobs. A similar increase in the wage gap for secretaries results in an 18 percent increase in turnover. RNs employed in hospitals, covered by a union contract, and employed in the public sector are relatively attached to the nursing profession. The author appreciates the helpful comments of Barry Hirsch, David Macpherson, and Leola Ross.     

The effect of employee loyalty on wages

In spite of a sizeable body of research linking employee loyalty to organizational performance, the causal link between employee loyalty and employee wages has rarely been examined. We use the UK’s 2011 Work and Employment Relations Survey (WERS) employee-firm matched data to estimate ordinary least squares (OLS), instrumental variables (IV) models and treatment effects models. Our results show that employee loyalty is negatively associated with wages.     

Searching for wages and mothering from Afar: The case of Honduran transnational families

This article draws on data from a 2‐year two‐country study that included 157 people to explore the survival strategies of poor Honduran transnational families. I argue that transnational families, defined as those divided between two nation‐states who have maintained close ties, depend on a cross‐border division of labor in which productive labor occurs in the host country and reproductive labor in the home country. This article bridges the literatures on transnationalism and families. The transnationalism literature tends to focus on macro processes, whereas the literature on families assumes proximity. This research helps fill the gap in both literatures, exposing the ways in which processes of economic globalization have radically altered family form and function.