Hispanic Immigration and Labor Market Segmentation

This paper investigates the wage and employment effects of Hispanic immigration on native-born, low-skilled urban workers. The study develops a multiquation model to counter simultaneity bias, isolates the impact of recent illegal aliens from that of settled immigrants and of native interstate movers, calculates separate estimates for female and male employees, subdivided by race and Spanish origin, and tests both conventional and dual labor market theories. The results indicate that recent immigration has not had substantial adverse wage or employment effects.     

Satisfaction, Market Wages, & Labor Relations: An Airline Study

We use arguments from economics and industrial relations to help examine aspects of job satisfaction in the context of a changing industrial relations scene. Market comparisons and wage contours provide the strongest predictors of pay satisfaction. Results also suggest that workers in the "B" tier of two-tier wage plans are in fact more satisfied with pay and that overall, workers are more satisfied with less supervision and more control over their work.     

The Effect of Labor Relations Laws on Unionization Rates within the Labor Force: Evidence from the Canadian Provinces

We examine the potential of labor‐relations reforms to address wage inequality by relating an index of the favorableness to unions of Canadian provincial labor‐relations laws to changes in industry, occupation, education, and gender‐specific provincial unionization rates. While we find some evidence of larger unionization gains among high‐school–educated workers, the differences across groups are small and in some cases suggest larger gains among professionals. Overall, the results suggest a limited potential for reforms in labor‐relations laws to mitigate growing labor‐market inequality.     

The Legacy of the Interstate Commerce Act and Labor: Legislation, Unionization, and Labor Earnings in Surface Transportation Services

The intended purpose of the 1887 Interstate Commerce Act (ICA) was the establishment of the Interstate Commerce Commission (ICC) as a regulatory agency that initially provided oversight of rate and entry of interstate commerce in the rail industry. The ICC’s jurisdiction later included regulation of trucking and bus transportation. An unintended consequence of ICC regulation was the development of labor markets in these sectors that helped promote labor organization and labor rent sharing. Indeed, some of the most influential unions in American labor history represented workers in ICC-regulated industries. This study examines the ICA and its aftermath as it applies to labor in these industries.     

Immigration and Informal Labor

We develop state‐level proxies for informal employment using differences between measures of self‐reported employment and officially sanctioned employment. In construction and landscaping, industries associated with under‐the‐table labor, we develop proxies for informal work based on productivity per officially sanctioned worker. We relate each set of proxies for informal employment to changes in immigrant population and composition. We find some evidence that immigration is associated with informal employment generally and in the construction industry when prevailing wages are low. States with high concentrations of low‐skilled male immigrants have higher levels of informal employment in the landscaping industry.     

Wages and the Labour Market

In contrast to the traditions of social science, the argument made here is that wage structures are not to be explained by reference to an underlying economic or social rationale through which they contribute to the efficient or smooth functioning of an economy or society. Theories of wages have overstressed coherence and functionality and underplayed conflict and contradictions and the scope for discretionary, random or opportunistic decisions. Wage structures have been held partially in check in the past by institutional and social processes which linked wages across the labour market. Many of these processes, from industry-level pay bargaining to concepts of fair wages, 'going rates' or the family wage, have disintegrated in the 1980s and 1990s. More attention needs to be paid to the role of wages in the redistribution of resources and to the need to re-regulate the labour market.     

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.     

Skilled Immigration,Innovation, and the Wages of Native‐Born Americans

The paper examines the effects of skilled immigration on wages that can be credited to immigrants’ contribution to innovation. Using both individual and state‐level datasets from the United States, we find a significant and positive effect of immigration on wages that is attributable to skilled immigrants’ contribution to innovation. Our results confirm previous findings that immigrants contribute substantially to the host economy's innovation, which is a major driver of technological progress and productivity growth. When we augment the analysis to an immigration–innovation–wages nexus, the results suggest that as the share of skilled immigrants in a particular skill group increases, the wages of both natives and immigrants in that group also get a positive boost. We also identify evidence in favor of a positive spillover effect of skilled immigrants on a state's wage level of all workers, including those who do not directly contribute to innovation.     

Wage Differentials by Race and Sex: The Roles of Taste Discrimination and Labor Market Information

Using a unique dataset, this article first documents that gaps in starting wages by race and sex persist after accounting for performance on the job. Evidence suggests that simple statistical discrimination, and not just taste discrimination, is partly responsible for race differences in starting wages. But because women's average performance in the sample is higher than men's, simple statistical discrimination cannot explain the sex gap. In more complex models of statistical discrimination, worse information about a group can lower its average wage. Estimates of the quality of labor market information indicate that this may explain women's lower starting wages.     

Extreme Wages,Performance, and Superstars in a Market for Footballers

We study the determinants of superstar wage effects, asking whether productivity or popularity‐based explanations are more appropriate. We use longitudinal wage and performance data for workers (players) and firms (teams) from a particular market for sports talent: Major League Soccer (MLS) in the United States. We find evidence that the top earners, whose annual salaries are mostly not accounted for by their past MLS performances, when compared to other footballers, are paid more because they attract significantly higher stadium attendances and thus revenues. There is no evidence that higher residual salary spending by the teams affects their relative performance in football terms, or that the amounts the teams spend on actual talent affect attendances. Taken together, these results suggest that a popularity‐based explanation of superstar wage effects is appropriate among the top earners in this labor market.     

Immigration and the Property Market: Evidence from England and Wales

This article investigates the link between immigration and property markets in England and Wales. Evidence from fixed effects and shift‐share–based instrumental variable regressions suggests that an increase in regional immigration, depending on the specification, either decreases prices at the lower end of the distribution up to the median or leaves them unchanged and has (almost) no effect on mean property prices or prices above the median. The evidence suggests that these findings can be explained through an interaction between the markets for rented and owned properties as well as through changes in the usage of housing space.     

Unionization,Inequality and Redistribution

This article explores the implications of the OECD‐wide decline of union density for earnings inequality and income redistribution by looking at aggregate (country‐level) data. Over the period 1975–95, countries that experienced relatively large declines in union density also experienced relatively large increases in earnings inequality. In addition, governments apparently became less willing to engage in ‘compensatory redistribution’ in these countries. Since the early 1990s, however, union decline has become less closely associated with rising earnings inequality and redistributive policy changes. I argue that the declining relevance of unionization has to do with changes in the position of union members in the income distribution. In most OECD countries, the average union member has become relatively better off as union density has declined and union members have probably become less supportive of wage solidarity and redistributive government policies.     

Macroeconomic Impacts of Canadian Immigration: Results from a Macro Model

We use a macro‐econometric forecasting model to simulate the impact on the Canadian economy of a hypothetical increase in immigration. Our simulations generally yield positive impacts on such factors as real gross domestic product (GDP) and GDP per capita, aggregate demand, investment, productivity, and government expenditures, taxes and especially net government balances, with essentially no impact on unemployment. This is generally buttressed by conclusions reached in the existing literature. Our analysis suggests that concern should be with respect to immigrants themselves, as they are having an increasingly difficult time assimilating into the Canadian labour market, and new immigrants are increasingly falling into poverty.     

Unionization structure, licensing and innovation

We show the effects of the unionization structure (viz., decentralized and centralized unions) on a firm's incentive for technology licensing and innovation. The incentive for technology licensing is stronger under decentralized unions. We identify circumstances under which the benefit from licensing creates a stronger incentive for innovation under decentralized unions. If the union's preference for employment is high, the benefit from licensing may create higher incentive for innovation under decentralized unions. However, if the union's preference for wage is high enough, the incentive for innovation is higher under a centralized union irrespective of licensing ex-post innovation. If the centralized union decides whether or not to supply workers to all firms, the possibility of higher innovation under decentralized unions increases. We further show that perfectly substitutable workers can be better off under decentralized unions if the labor productivity depends on the unionization structure, which occurs in our analysis when, e.g., licensing after innovation occurs only under decentralized unions or innovation (with no licensing) occurs only under a centralized union.     

LDC Labor Markets: Applications of Internal Labor Market Theory

This article does not attempt, nor has it delivered, a complete theory for the labor market in Egypt, let alone for LDC labor markets in general. The macro-model developed here serves mainly to demonstrate the diaculties involved in formulating macro-theories for LDC labor markets that, while necessarily simple, can still claim realism when confronted with certain fundamental “stylized h t s. Our considerations have, moreover, been limited to LDCs with mixed economies, using Egypt as the example. Hence, large-scale modern industry was assumed to belong to the public sector which then emerges as the country dominant, nonagricultural employer. Agriculture is the second large and relatively homogeneous sector, in Egypt dominated by small holdings. In-between we find the private, nonagricultural sector, overwhelmingly dominated by small-scale enterprises with large numbers of the self-employed, and with trade as the most important single activity. Labor is (in Egypt) generally unorganized or enrolled in government-controlled unions, active mainly in the public sector and without much real say in matters of wages and salaries. It is in this specific institutional setting that I have tried to discuss the application of internal labor market theory. This theory has, to the best of my understanding, nothing to offer by way of explaining public sector behavior (which is of crucial importance for wage and employment formation in a mixed economy). However, adapted to the circumstances, internal labor market theory goes a long way toward explaining wages and employment in agriculture and the “informal” small-scale sector. Our considerations, tentative though they are, do not point to any single, dominant labor market mechanism that could form the basis for a simple macro-theory. Wage flexibility differs greatly between sectors, overstaEng may be a more important phenomenon than unemployment in some activities, and unemployment may be of both the voluntary and involuntary variety, with withdrawals from the labor market related to well-defined reserve wages, and open unemployment related to internal labor market behavior. These considerations are based more on loose impressions than on solid facts. Further theorizing may be needed, but the development of labor market theory for LDCs has undoubtedly reached a point where progress depends critically upon painstaking empirical studies of basic labor market institutions such as employment and wage forms and responses, bargaining procedures, and conditions of both labor and output markets for small private enterprises in particular countries. Considerable work has been done in India but even here much remains for investigation. Studies of specific countries may, even for LDCs in rapid, turbulent transformation, disclose ongoing changes in institutions that for a full understanding of the labor market may be more important than the institutions themselves. Existing wage theory has little to offer for the analysis of such institutional change, but something may be learned from the American institutional school in labor economics whose leading exponent we are paying homage to with these papers.     

促进就业:德国劳动力市场改革

自2003年始,德国推行了一系列劳动力市场改革措施。改革的取向,是放松劳动力市场管制从而增强就业灵活性。为此,德国政治家和经济学人做了大量社会动员工作。在理论上,强调向有关社会市场经济制度的基本思想回返,将就业安全性与灵活性相结合。在政策设计中,对劳动和社会保障管理系统实行去官僚化改造,变革社会救助和失业保险条例,激励失业者从事灵活就业。同时,辅之以对人力资本的大规模公共投资,并以就业目标为导向,在职业培训和中介领域引入竞争机制。在经济整体向好的形势下,德国改革取得了就业形式多样化和失业率下降的成果。这其中的理论和制度创新,值得中国决策者和公众借鉴。