The Experience-Earnings Profile: Productivity-Augmenting or Purely Contractual? Evidence from the UK

We test the human capital interpretation of the experience-earnings profile. Does the upward sloping portion of the experience-earnings profile reflect on-the-job training which in turn causes the experience-productivity profile to slope upwards, or do purely contractual factors determine the nature of life-cycle earnings. Herein, we provide additional evidence on the relationship between productivity and earnings by examining earnings differentials in the UK academic labor market for economists. Using a test first suggested by Mincer, we find that the empirical results are consistent with human capital theory. We find that, although the positive relationship between earnings and experience persists when individual productivity measures are included in the salary equations for lecturers and senior lecturers, the positive relationship becomes statistically insignificant when the same productivity measures are included in the salary equations for professors. For lecturers and senior lecturers, the experience-salary profile properly reflects the structure of the national pay scale rather than variations in individual research productivity. At the professor level, where individual salaries are not determined by a pay scale, the data support the human capital explanation of the positive experience-earnings profile.

Sexual Orientation and Labor Market Discrimination

We develop empirical estimates of the return to sexual orientation in the labor market and utilize the 2004 Current Population Survey to determine if lesbians and gay men are treated differently from their heterosexual counterparts. We find strong evidence consistent with the hypothesis of discriminatory treatment against gay men, and this evidence differs substantially by occupation. On the other hand, we find no evidence of discrimination against lesbians. These findings are consistent with priors based on economic theory of the standard taste for discrimination and statistical discrimination models. The results for both men and women are consistent across wage and total compensation regressions.

Home Ownership, Social Insurance, and the Welfare State

Home ownership has potentially significant consequences for welfare state policy. High owner-occupancy rates may function as private insurance where social spending is low (a substitution effect). Alternatively, state income redistribution policies could raise the number of home owners (an income effect). Cross-national time-series data show that social spending is negatively related to home ownership, and mediates the positive relationship between income inequality and owner-occupancy rates. This suggests that owner-occupancy acts as a form of social insurance over the life course. Future welfare state researchers should consider the issue of home ownership in analyses of inequality and the social safety net.

The response of household parental investment to child endowments

The theoretical and empirical literature on parental investment focuses on whether child-specific parental investments reinforce or compensate for a child’s initial endowments. However, many parental investments, such as neighborhood quality and family size and structure, are shared wholly or in part among all children in a household. The empirical results of this paper imply that such household parental investments compensate for low endowments, as proxied by low birth weight.

Antecedents of Total Factor Productivity Change: Empirical Evidence from the Chinese Banking Sector

By applying the non-parametric Malmquist Productivity Index (MPI) method, this paper attempts to investigate the sources of productivity changes of China’s State Owned Commercial Banks (SOCBs) and Joint Stock Commercial Banks (JSCBs) during the period 2000–2005. The empirical findings suggest that the China banking sector has exhibited productivity progress attributed to the increase in efficiency. The empirical findings suggest that the SOCBs and the JSCBs have exhibited productivity progress of 0.2 and 1.3%, respectively.

The scoring rules in an endogenous election

Plurality rule is mostly criticized from being capable of choosing an alternative considered as worst by a strict majority. This paper considers elections in which the agenda consists of potential candidates strategically choosing whether or not to enter the election. In this context, we examine the ability of scoring rules to fulfil the Condorcet criterion. We show for the case of three potential candidates that Plurality rule is the only scoring rule that satisfies a version of the Condorcet criterion in two cases: 1) when preferences are single-peaked and, 2) when preferences are single-dipped.

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The distribution of financial well-being and income within the household

In this paper we consider the issue of the intra-household distribution of welfare directly using a survey measure of self-perceived economic well-being. We develop a theoretical model of satisfaction within the household for couples. In the empirical analysis we find that husbands and wives often report different levels of financial satisfaction. The most important correlate of relative satisfaction within the household is found to be relative income. This is a direct confirmation of the previously implicit findings and is predicted by our theoretical model.

The market for foster care: an empirical study of the impact of foster care subsidies

When parents are suspected of child abuse or neglect, their children may be placed with foster families. We estimate the relationship between the monthly subsidies paid to foster families and the quantity of foster care services provided. The empirical model uses variation in subsidies and foster care populations within 37 states and the years 1987–1995. One innovation in our approach is that we exploit the idea that states do not appear to set market clearing rates, as evidenced by a foster home shortage during this time period. In this case of excess demand, variation in the monthly subsidy traces out the supply curve. Our results show that states with high demand may be able to use economic incentives to recruit foster families.

Appropriating the city: space,theory, and bike messengers

Over the last 30 years, social theorists have increasingly emphasized the importance of space. However, in empirical research, the dialectical relationship between social interaction and the physical environment is still a largely neglected issue. Using the theory of structuration, I provide a concrete example of why and how space matters in the cultural analysis of an urban social world. I argue that bike messengers—individuals who deliver time-sensitive materials in downtown cores of major cities—cannot be understood outside an analysis of space. Specifically, I connect the cultural significance of messenger practices to the emplacement of those practices inside the urban environment.

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Reduced prizes and increased effort in contests

We study the general class of two-player public-policy contests and specify the asymmetry condition under which a more restrained government intervention that reduces the contestants’ prizes has the “perverse” effect of increasing their aggregate lobbying efforts.

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Poverty and its persistence: a comparison of natives and immigrants in Sweden

This paper analyzes poverty and its persistence in Sweden using a large panel with detailed income information obtained from tax registers. As opposed to many commonly used household panels, the features of the data utilized in this paper allow us to study native-immigrant differences in poverty. We use a hazard rate model based on multiple spells that accounts for unobserved heterogeneity and endogenous initial conditions. The empirical results suggest that there is negative duration dependence in both exit and entry hazard rates. Moreover, the transition rates are significantly affected by immigrant status, educational attainment, labor market conditions, age, and family status.

Sexual orientation and self-reported lying

This paper examines empirical links between sexual orientation and self-reported lying using data collected in several waves of Georgia Institute of Technology’s World Wide Web Users Survey. The data include questions about sexual orientation, lying in cyberspace, and a broad range of demographic information. According to the theoretical framework of Gneezy (Am Econ Rev 95: 384–395, 2005) on the economics of deception, individuals conceal or falsify information when the expected benefit of lying exceeds its costs in terms of psychic disutility. If non-heterosexuals expect to benefit more by falsifying information, then this theory predicts higher rates of lying among non-heterosexuals. The data show that gays and lesbians do indeed report lying more often than heterosexuals, both unconditionally in bivariate correlations and after controlling for demographic and geographic differences. These empirical results are consistent with the conclusion that non-heterosexuals expect higher benefits from concealing personal information because of anti-homosexual discrimination.

The Non-Existence of the Labor Demand/Supply Diagram,and other Theorems of Institutional Economics

The most famous and influential diagram in modern (neoclassical) labor economics is the model of wage determination by supply and demand. Using concepts and ideas from institutional economics, I argue that the theory of a perfectly competitive labor market is logically contradictory and, hence, the demand/supply diagram cannot exist on the plane of pure theory. Four other fundamental theorems concerning labor markets are also derived, as are implications about the theoretical foundation of the field of industrial relations and the economic evaluation of labor and employment policy.

The Decline in American Trade Union Membership and the “Government Substitution” Hypothesis:A Review of the Econometric Literature

This paper reviews the empirical literature on the “Government Substitution” hypothesis. We focus our attention on the sample periods used, model specification, and econometric technique. The seminal piece on this topic is Neumann and Rissman (J Labor Econ 2:175–192, 1984) and to date there have been less than a handful of extensions beyond this initial investigation. By tracking the limited development of this hypothesis over time we are able to conclude that there is still an opportunity for additional empirical exploration in this area.

Between Market and Civic Governance Regimes: Civicness in the Governance of Social Services in Europe

The paper proposes to discuss the issue of civicness in the governance of social services by analyzing policy changes relative to the regulation and governance of social services in Europe. The empirical analysis is structured around the concept of “governance regime.” The paper shows that modernization processes within the field of social services in Europe develop along two radically different regulative conceptions reflected into two different governance regimes: market-based or competitive governance vs civic-based or partnership governance. The governance of social services in Europe appears to take place within a mix between two ideal-typical governance regimes: the market-based and partnership-based governance regimes.

Dissociation,Traumatic Attachments,and Self-Harm: Eating Disorders and Self-Mutilation

Self-harm, such as eating disorders and self-mutilation, represents dissociated compensatory attempts to serve self-regulatory functions. Self-harm develops when the child who has become attached to those who have inflicted pain and suffering maintains that attachment by inflicting pain on himself. Brain imaging studies have found that the communication pattern between parent and child shapes the way the child’s attachment system adapts to experiences with the attachment figure, literally hardwiring the child’s brain. The good news is that a safe and secure attachment is very good medicine and can rewire the brain. An attachment-based multi-phase approach to treatment is presented.

On the sharing of temporary parental leave: the case of Sweden

This paper views temporary parental leave (leave from work to take care of a sick child) as a household public good, produced with time inputs of the parents as the only input. Assuming equal productivities in the production of temporary parental leave and equal utility functions of the spouses, different household decision-making processes are applied to develop theoretical hypotheses on sharing that are thereafter tested empirically. The empirical estimations show that the decision-making process of the spouses can be explained by a Stackelberg model with male dominance. A stronger threat-point of the female is found to push the intra household allocation of temporary parental leave towards greater sharing between the spouses. In addition, an increase in the insurance ceiling will further sharing of temporary parental leave in some families, while reducing it in others.

Chinese Contract Law and the Economic Reform

China’s previous contract laws had many contradictions and failed to meet the needs of China’s developing market economy. Although some problems still need to be dealt with, the unified contract law is more advanced, systematic and plays an important role in fostering and encouraging transactions.

The inverse plurality rule—an axiomatization

Under the ‘inverse plurality rule’, voters specify only their least preferred alternative. Our first result establishes that this rule is the only scoring rule that satisfies the minimal veto condition (MV). We then prove that the inverse plurality rule is characterized by MV and the four well known conditions that characterize scoring rules; namely, Anonymity (A), Neutrality (N), Reinforcement (RE) and Continuity (CO). Our new characterization result is related to the characterizations of approval voting and of the widely used plurality rule. We finally show how the axiomatization of the inverse plurality rule can be extended to the axiomatization of elementary scoring rules (vote for t-alternatives scoring rules). We are indebted to two anonymous referees for their most useful comments.

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