CHARITIES, NO; LOTTERIES, NO; CASH, YES: MAIN EFFECTS AND INTERACTIONS IN A CANADIAN INCENTIVES EXPERIMENT

The effects on response rates to mail surveys of prepaymentcash incentives, charitable donations, and the chance to wina lottery prize are examined in a true experimental design.A survey on environmental issues was conducted during the fallof 1994 among 3,088 households drawn from the Grand River watershedregion of southwestern Ontario, Canada. The 20-cell incentivesexperiment crossed three levels of prepaid monetary cash incentive($2, $5, and $10) with a control group (no cash incentive),plus the offer to make a charitable donation ranging from $2to $10 on behalf of the respondent, or participation in a lotteryfor prizes of $200. The overall response rate to the survey,with three follow-ups, was 70.7 percent with the effects ofthe prepaid cash rewards demonstrated, but not those for thelottery or charitable donations. Logistic regression analysisof response rate supports a main effects model for cash incentivesbut does not support either of two alternative models for maineffects of the lottery and charitable donations or interactions.Further analysis demonstrates a pattern of earlier responseas a result of prepaid incentives. The findings are discussedin terms of their cost-benefit implications and with respectto conceptualizations of respondents' motives for completingmail questionnaires.     

MANDATORY RETIREMENT AS A CLAUSE IN AN EMPLOYMENT INSURANCE CONTRACT

This paper postulates the existence of an "employment insurance contract" in which firms insure the employment of workers, at a predetermined wage, against potential, age related declines in productivity. To limit its liability the firm establishes an age limit to its promise ––– the mandatory retirement age. It is demonstrated that Pareto-efficient contracts exist which involve mandatory retirement at a specific age. The existence of these contracts, including mandatory retirement, increases workers' life-time utility and encourages the accumulation of human capital. Empirical results are consistent with the predictions of the model.     

Market and non-market effects on male and female occupational status attainment

Nous étudions dans cet article le processus ?acquisition de statut social, au regard de quatre approches sur le marché du travail: 1/ le chômage structural; 2/ les cycles économiques; 3/ la théorie des files ?attente et 4/ la théorie de la segmentation. Les implications de ces perspectives sont évaluées au moyen ?un modèle ?acquisition de statut qui comporte trois dimensions: temps, antécédents socio-économiques, sexe. Notre échantillon est composé?individus qui ont obtenu laur premier emploi à temps plein entre 1961 et 1972. Les résultats de ?analyse sont en accord avec les perspectives du chômage structurel et de la théorie de la segmentation, alors que ?accord n'est que partiel avec la perspective du cycle des affaires. Et on peut conclure dans un sens ni dans ?autre en ce qui a trait à la théorie de la file ?attente. De plus, nous montrons que les caractéristiques des individus (surtout les femmes) étudiés varient dans le temps, et que ceci doit être pris en compte si ?on veut comprendre la stratification et ?acquisition de statut social dans les sociétés complexes. The paper examines the status attainment process in relation to four labour market perspectives: 1/ structural unemployment; 2/ the business cycle; 3/ queuing theory; and 4/ segmentation theory. We evaluate their implications by developing a status attainment model which varies along three dimensions - time, socio-economic background and sex -and by testing the model on a heterogeneous sample of individuals who entered their first full-time job between 1961 and 1972. The results support our structural unemployment and segmentation-theoretic hypotheses, are partially supportive of our business cycle hypothesis and are ambiguous with respect to our queuing hypothesis. The discussion relates various labour market trends over the 1961–72 period to the status attainment process. In addition, we emphasize that the characteristics of individuals (particularly of women) entering into their first full-time job are time-dependent, and that this has implications for the understanding of status attainment and social stratification processes in complex societies.     

EMPLOYER SEARCH, TRAINING, AND VACANCY DURATION

We develop a model of optimal employer search strategy when information about match quality is endogenous. The model is tested using four data sets, two of which have not previously been used. As theory predicts, we find that when filling positions requiring more training, employers search more intensively and extensively. Employers also search more extensively when hiring workers with more education and with prior experience. These findings provide strong evidence of systematic variation in search strategies based on the characteristics of the positions and job applicants. Factors that influence employer search also affect the duration of a vacancy.     

TEACHING TOOLS EXPERIENTIAL LEARNING IN THE UNDERGRADUATE CLASSROOM: TWO EXERCISES

We describe two classroom exercises which can be used to reinforce undergraduate students' understanding of (1) production and cost concepts and (2) the concept of economic scarcity. In the first exercise, students use their experience in producing "widgets" in a single variable input environment to derive a wide range of production and cost data. In the second exercise, students use their experience in producing two goods under various allocations of a fixed set of resources to generate a production possibilities frontier. The resulting links between concept and experience enhance students' understanding of these important concepts.