On-the-Job Training, Immigration Reform, and the True Wages of Native Male Workers

This study measures the Immigration Reform and Control Act's (IRCA) impact on the "true" earnings of native workers. True earnings include observed wages and compensation received in the form of on-the-job training (OJT). Using 1983–1992 NLSY data, we present evidence suggesting IRCA reduced the true wages of male natives most likely to be mistaken as unauthorized. Our findings suggest that Mexican Americans suffered the largest decline in post-IRCA OJT. It appears then that antidiscrimination policies following recent immigration reform have not fully protected some U.S. natives against unintended IRCA-related employment discrimination.     

国有企业激励合同的相关性

毁有的讨论国有企业管理者激励的文献都忽略了管理者的激励与工人激励的关联,这实际上是假定了管理者的激励合约和工人激励合约的无关性。本文把它称之为不相关定理。本文运用经验资料对这个定理进行了批评。证明了国有企业激励合同相关性命题,并对激励相关性存在时激励合同的设计进行了非形式化的讨论。激励合同相关性的提出,使我们能够从经济学的立场来理解为什么有的国有企业管理者报酬偏低,企业效益却并不差,西方社会中采用     

Public- and Private-Sector Wage Differentials in Canada Revisited

Using a variety of techniques, we estimate the wage premium for federal, provincial, and municipal public-sector employees in Canada. We find that females in the public sector are paid a wage premium, with federal government workers enjoying the highest rents, followed by local and provincial public-sector employees. Estimates for males suggest that rent payments are comparably less, but results are inconclusive.     

Job Attributes and Federal Wage Differentials

As part of the debate on how to treat attributes of a job (as opposed to a worker) when measuring federal differentials, the focus has been on the proper treatment of employer size. Using employer size, we highlight the two extremes in the literature of either holding job attributes constant or of assuming attributes do not transfer between sectors. A third alternative-estimating the extent to which the attribute will transfer-is much closer in value to that generated by holding employer size constant.     

Industry Wage Differentials and Wait Unemployment

This analysis uses individual-level data to test the industry wage differential-wait unemployment hypothesis. Using the 1988 Bureau of Labor Statistics Displaced Worker Survey, it examines the role of predisplacement industry in determining the length of jobless spells and finds some evidence consistent with wait unemployment. The analysis also considers the incidence of joblessness separately from duration and finds that factors positively related to the occurrence of a spell are not necessarily positively related to its ultimate length.     

Compensating Wage Differentials in the Union and Nonunion Sectors

This paper tests for the existence of structurally different compensating payments in the union and nonunion sectors of the economy. Significant differences may stem from the different mechanisms by which such payments are determined: markets are the primary mechanism in the nonunion sector, while Political processes play a major role in the union sector. The empirical results provide tentative support for the structural differences hypothesis; They also reveal an absence of positive and significant compensating payments in nonunion labor markets.     

Immigration, Ethnic Wage Differentials and Output Pay in Canada

Recent work suggests that ethnic minority wage differentials in Canada are smaller among those receiving performance pay and that the returns to performance pay are larger for ethnic minorities. This article adds to these findings. First, it demonstrates critical gender differences. The earlier findings are generated almost exclusively by males, as we show that the minority wage differential is small or zero for women in both the time rate sector and the performance pay sector. Second, accounting for immigration and language tends to move the ethnic wage differential in favour of minorities. Minority women on output pay are shown to earn more than non-minority women. While the differential often remains negative for minority men on time rates, it becomes insignificant in our most narrow comparison.     

Unobserved Worker Quality and Inter-Industry Wage Differentials*

This study quantitatively assesses two alternative explanations for inter-industry wage differentials: worker heterogeneity in the form of unobserved quality and firm heterogeneity in the form of a firm's willingness to pay (WTP) for workers' productive attributes. Building on hedonic models of differentiated product demand, we develop an empirical hedonic model of labor demand and apply a two-stage nonparametric procedure to recover worker and firm heterogeneities. In the first stage we recover unmeasured worker quality by estimating market-specific hedonic wage functions nonparametrically. In the second stage we infer each firm's WTP parameters for worker attributes by using first-order conditions from the demand model. We apply our approach to quantify inter-industry wage differentials on the basis of individual data from the NLSY79 and find that worker quality accounts for approximately two thirds of the inter-industry wage differentials.     

Output Pay and Ethnic Wage Differentials: Canadian Evidence

Using the Workplace and Employee Survey, we are the first to examine the association between payment method and ethnic wage differentials in Canada. Following earlier theory, we hypothesize that output pay tying earnings to productivity makes it more difficult for employers to discriminate. The empirical estimations show that non‐Europeans in Canada paid by time rates receive lower earnings than Europeans paid by time rates. Yet, non‐Europeans paid by output pay receive virtually identical earnings to their European counterparts.     

Wage Differentials in São Paulo's Labor Force

To explain the variation in the salaries of specialized workers in São Paulo's industries of transformation, we have used a model made up of five variables: the person's occupational preparation, the influence he may exert within the company because of his occupation, his age, his seniority in the company, and his time on the job. The data obtained for the total sample show clearly that the status of the worker within the company (occupational influence) as well as his occupational preparation and age, are powerful partial determinants of salary levels in São Paulo. On the whole, training is the most powerful of these variables because it has a strong direct effect on wages and because it has an indirect effect on wages through its impact on occupational influence level. Variables indicating experience in the company (seniority) and in the present job are almost negligible. The results suggest the presence of a modern industrial structure where one's technical preparation and position in the company are closely related and where these factors weigh far more heavily than experience on the job and in the company. Except for age, the viable variables used here are special cases of major status dimension: wealth (wages); power (occupational influence); informational status (occupatibnal preparation or education). Occupational prestige was also investigated and, in a stepwise regression, was found useless as a determinant of wages. In this research we explore, possibly for the first time, the use of a power variable, occupational influence, as a determinant of a reward variable, hourly wages. Though theoretically promising, power has previously been remarkably resistant to empirical analysis. Although our use of occupational influence has been successful, the introduction of new variables is always risky. We hope that others will conduct studies leading either to refinements in the use of this and similar indicators or to their rejection. Also, recent publications report only a small effect of most known variables on individual income differentials in the United States. Perhaps adding occupational influence might help. It is worth repeating that in the present data-set, this variable alone explains just about as much variance in hourly wages (23 per cent) as a set of 13 repressors does on job income (27 per cent) in data analyzed by Spaeth. The whole set of five variables is, of course, more effective here, with 36 per cent of the variance explained. These differences may be due to many factors. It would seem that education may be more influential in Brazil—or at least in this sample —than in the United States. Clearly, educated personnel are in shorter supply than in the United States, and the relative rewards may be greater. If this is true, the rewards for education should decrease as Brazil's education system improves. In any case, by its clear elimination of job experience and seniority, and its strong support for occupational training, occupational influence level, and age, we hope the present work may add to the growing body of evidence regarding the determinants of wage differentials, especially in Brazil and perhaps in other dynamic third world sectors.     

Are Union Wage Differentials in the United States Falling?

This paper addresses several estimation and specification issues in estimating union wage differentials in the United States over the last two decades. Estimates provide strong evidence of a decline in the differential for women. For men, the differential appears to have declined for a person with overall average characteristics, but not for a male with characteristics of the average unionized male.     

Public Wage Differentials and the Public Administration "Industry"

The public sector consists of two broad sub samples, administrators and no administrators. The two groups have very different occupational compositions and contrasting patterns of compensation. Inconsistent treatment of these sub samples has led to past government differentials, which are not comparable. While administrators remain overpaid relative to their private sector counterparts, no administrators are underpaid relative to their counterparts. Moreover, public wage differentials way substantially in sign and magnitude from industry to industry. Such results demonstrate that no simple, homogeneous government differential exists.     

Rhetoric in Economic Research: The Case of Gender Wage Differentials

Scientific rhetoric can have a profound impact on the perception of research; it can also drive and direct further research efforts. What determines whether results are discussed in a neutral or a judgmental way? How precise and convincing do results have to be so that authors call for significant policy changes? These questions are in general difficult to answer, because rhetoric on the one hand, and content and methodology of the paper on the other, cannot be separated easily. We therefore used a unique example to examine this question empirically: the analysis of gender wage differentials. Here, the Blinder–Oaxaca decomposition represents a standard research method that compares male and female earnings, holding observable factors constant. We analyzed close to 200 papers to investigate what drives authors to talk about discrimination, whether and when they call for policy activism, or when they are more hesitant to do so. Our results show that American authors are more reluctant to refer to discrimination. So are women, but only with respect to the titles of their papers. Furthermore, we find that the better the data and method used in a paper, the more likely an author is to assign his/her estimate of unequal wages to discrimination. The contrary is true the higher the prestige of the author or the research outlet.