Employer initiatives to examine cost and quality in health care

Actions by private sector employers as well as moves by federal and state agencies have begun the process of integrating cost and quality in health care decision making.     

COMPARING FEDERAL AND PRIVATE‐SECTOR WAGES WITHOUT LOGS

I use Current Population Survey data from 2005 through 2010 to compare the wages of federal employees and workers in the private sector who have similar observable characteristics. The distribution of wages differed drastically between the federal and private sectors. In particular, I find that federal employees with no more than a high school diploma earned 21% more, on average, than their private‐sector counterparts, whereas those with a professional degree or doctorate earned 23% less. Overall, the average of federal wages was about 2% higher than the average wage of similar private‐sector workers. Other researchers have found larger differences because they used log‐linearized models, which result in comparisons of geometric means. I show that arithmetic means are more relevant in the context of the relationship between a government's compensation policy and its budget. The discrepancy between differences in arithmetic and geometric means occurs because the wages of federal employees were much less dispersed than those of employees with similar characteristics in the private sector. (JEL J31, J38, J45)     

Federal and union job queues: further evidence from the US labour market

Recent research on union differentials suggests that although the premium to unionization is higher in the private sector, it can hardly be ignored in the federal sector. Consequently, the nature and length of the federal queue may differ between union and non-union sectors. Similarly, the union queue may not necessarily be homogeneous between federal and private sectors. We estimate separate queues for federal-union, federal-non-union and private-union jobs from the same sample. This avoids the problem of simultaneity between the federal queue and the union queue. In addition, it explores several important differences that exist between these queues.     

Private sector employment in Russia: Scale, composition and performance

In Russia, as across Central and Eastern Europe, privatization and the establishmemt of new private firms have been viewed as key factors in labour market adjustment during the transition period. This paper considers the overall employment developments in the private sector in Russia and the extent to which the private sector employment performance is differentiated from that of other sectors in five Russian regions. The analysis is based on a fresh look at these issues using official statistics published by Goskomstat and drawing on microdata from the March 1996 Russian Labour Force Survey (LFS). A special questionnaire attached to the LFS in the study regions provides supplementary information.
The paper highlights shifts in the sectoral composition of employment, including growth in private sector employment. Compared to other forms of ownership, the analysis confirms a tendency for private sector ownership in the study regions to be associated with stronger employment performance with respect to hours worked and, in some cases, timely payment of wages. Private sector firms appear to have relatively flexible employment patterns, utilizing more fixed-term or part-time employment than other types of firms and experiencing greater labour turnover. Also, private sector employees tend to be somewhat younger and probably more adaptable people. However, there is significant variation across the study regions and substantial exceptions exist with respect to the above-mentioned tendencies. With respect to employment issues, the differentiation between sectors appears to be less pronounced than one might have expected.     

An interview with Samuel O. Thier. Interview by Carmella A. Bocchino

The Institute of Medicine (IOM), a component of the National Academy of Sciences, has become a close advisor to the federal government and exercises considerable influence on developing public health policy. Since 1985, Samuel O. Thier, MD, has served as President of the Institute. In this interview, Dr. Thier discusses the role IOM plays in setting national policies, its relationship to both the public and private sector, and his goals for the Institute of Medicine.     

The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration

In deregulated transport markets, a firm's ownership status and management system represent an important issue. Property right theory suggests that productivity and performance are higher in the private than in the public sector. In Switzerland, providers of bus transportation are traditionally corporations, though a large part of their equity shares are still held by the public sector (federal government, cantons, municipalities). This paper examines the potential impact of ownership on the cost of bus service provision for a sample of private, public and mixed bus companies in Switzerland. The estimation of a translog cost model has been considered for 34 bus transit companies observed over 5 years (1991–1995). The results only partially confirm that if the private sector holds shares in the company's capital, efficiency is enhanced. In addition, measures of economies of scale and density are derived and discussed within the actual public transport policy.     

The impact of public R&D investments on patenting activity: technology transfer at the U.S. Environmental Protection Agency

ABSTRACT

This paper presents estimates of the impact of public R&D on patenting activity at the U.S. Environmental Protection Agency (EPA). Using a time series of public sector agency data, we estimate the per-capita R&D elasticity of new patent applications using a knowledge production function framework model that is an expanded version of what other scholars have used with private sector data. New patent applications are an important step in the technology transfer activities of a federal agency. We estimate this elasticity to be about 2.0. This elasticity value represents an initial estimate of the impact of EPA’s R&D investments on its technology transfer activity.     

Do government purchases crowd out investment?

The objective of this study is to determine whether federal government purchases negatively impact private investment using times series regression analysis. This study uses quarterly data from the years 1986.1 to 2004.4 in order to provide a relatively contemporary evaluation of the effects of federal purchases on private investment. The empirical results in this study reveal that increases in federal urchases, expressed as a percent of GDP, act to reduce new investment, which provides further support for the theory that government expenditures crowd out private investment. (JEL: E22, E62)     

Tenures That Shook the World: Worker Turnover in Russia, Poland, and Britain

We study worker turnover to investigate to what extent the length of time a worker has been employed by a firm shapes the turnover process in a transition economy. Using survey data, we compare the pattern of turnover with a Western economy, Britain. We show that tenure-turnover rates are higher in Russia and lower in Poland than in Britain. The characteristics of workers hired in the state and private sectors do not look very different. State and private sector firms in Poland offer the same wages to new recruits, but new private sector jobs in Russia appear to offer wage premia relative to new state jobs. We argue that these observations are consistent with a framework in which the value of seniority in jobs begun under the old order may be small and the value of a continued job match unsure, offset, in Poland at least, by insider resistance to layoffs.J. Comp. Econom., December 2000, 28(4), pp. 639–664. Heriot-Watt University, Edinburgh, IZA, Bonn, The William Davidson Institute, University of Michigan Business School, Ann Arbor, and EERC, Kiev; Centre for Economic Performance, London School of Economics, Royal Holloway College, University of London, IZA, Bonn, and The William Davidson Institute, University of Michigan Business School, Ann Arbor.     

Wage Differentials between the State and Private Sectors in Moscow

In this study the 1997 Russian Labor Force Survey is used to investigate wage differentials between the state and the private sector in the city of Moscow. Our analysis demonstrates that substantial differences exist between private and state sector wages. We estimate the gap between private and state sector wages to be 14.3 percent for men and 18.3 percent for women. We also find gender differences in wages. Men in the private sector earn on average 23.7 percent more than women. The gender wage gap in the state sector is even higher at 32.5 percent. In the state sector, wages for both men and women increase as years of tenure increase. But in the private sector this is only true for men; women earn no return to tenure. The probability of employment in the private sector decreases with age and tenure.     

Government employment and the provision of fringe benefits

This study uses individual level data from the United States to examine the influence of government employment on the provision of five major fringe benefits. Four of the five benefits are more likely to be provided to government workers than to their private sector counterparts. Unlike wage comparisons which typically find substantial overpayment only for federal workers, the findings suggest that past wage differentials underestimate the true compensation advantage enjoyed by government workers.     

Worker turnover and job reallocation in Taiwanese manufacturing

The paper examines time-series patterns of job and worker flows in a newly industrializing economy (NIE). Using plant-level data from the Taiwan manufacturing sector, the cyclical behaviour of job reallocation and its relation with worker turnover is analysed. It is found that job reallocation and labour turnover are procyclical, at both the aggregate and (two-digit) industry levels. The share of worker turnover caused by gross job reallocation is 17%, suggesting the majority of observed worker turnover reflects rotations of positions that are neither created or destroyed. There is substantial heterogeneity in plant-specific job and worker turnover patterns. Job creation and job destruction rates are higher among small plants and private-sector plants. The private plants are more dynamic than public plants in terms of worker turnover. Controlling for year and industry effects, it is found that job creation and worker turnover are both higher in export-oriented industries.     

Small business in the Russian provinces: Case study evidence from Volgograd

During the 1990s Slovenia has moved toward a more market-based economy with a greater role for the private sector in asset ownership, production and price determination. The Slovenian food industry comprises a small number of producers operating in a comparatively modest market. Primary and secondary data analysis indicates that firms are largely oriented to a domestic market that is significantly protected. This has augmented profitability in the sector, albeit with substantial variations between branches. Profit levels (measured as cash flow as a percentage of turnover) are relatively high. If Slovenia joins the EU, food manufacturers operating in an enlarged European Single Market will not be afforded the degree of protection they currently receive and this heralds a substantial challenge to enterprise managers.     

Ownership and enterprise performance in the Russian oil industry, 1992–2012

This article examines enterprise performance in Russian oil companies between 1992 and 2012. The analysis is based upon longitudinal trend output data, and distinguishes between four different types of owners – outsider private, insider private, federal state and regional state. In comparison with previous studies which considered just 1999–2004, and identified outsider private companies as the best performers, this article finds that over the longer period 1992–2012 federal state and insider private-owned companies actually performed best. The explanation for this relates to institutions and the business environment.     

Evolution of the Public–Private Sector Wage Differential during Transition in Estonia

This article estimates the public–private sector wage differential in Estonia over the transition period. Quantile regression is used with a dataset from Estonian Labour Force Surveys from 1989 to 2004 for this purpose. The results of the analysis indicate that the public–private sector wage differential was negative during early transition but has decreased subsequently. It also shows that employees with low potential wages tend to gain more or lose less from working in the public sector than workers with high potential wages. The public–private sector wage differential is negatively related to the number of public employees and tends to be counter-cyclical. Political cycles have no effect on the public–private sector wage differential in Estonia.     

Segregation and gender wage gaps in the private and the public sectors: an analysis of Danish linked employer–employee data, 2002–2012

This paper examines the relation between segregation and the gender wage gap in the public and the private sectors in Denmark from 2002 to 2012. The analysis shows that male–female differences in the share of females in occupations, industries, establishments and job cells (occupations within establishments) constitute 46 % of the raw gender wage gap in the private sector, while segregation in the public sector accounts for as much as 63 %. Segregation thus plays a substantially more important role in accounting for the gender wage gap in the public sector than in the private sector. While the importance of segregation for wage formation decreased substantially in the public sector over time, it only decreased slightly in the private sector. Although the remaining gender wage gap, after controlling for segregation, is close to zero in the public sector, a substantial within-job cell differential remains after controlling for segregation in the private sector.     

State enforcement of federal standards: Implications for interstate pollution

This paper explores the relationship between interstate air pollution and the division of power between federal and state agencies in setting and enforcing standards. In the context of the US Clean Air Act we argue that the EPA is able to monitor the adoption of technology-based standards more closely than it can monitor state-level enforcement, and that this causes an effective division of control between federal and state agencies. Our analysis offers three main insights into the interstate pollution problem in this setting. First, states have an incentive to enforce standards less stringently on firms located close to downwind borders, and this leads to excessive interstate pollution in equilibrium. Second, there can arise an inherent substitutability in the regulatory problem between strict standards and compliance effort, and this creates a strategic linkage between the federal policy on standards and state policies on enforcement. In particular, a tighter federal standard can induce less selective enforcement but can also lead to less enforcement overall. Third, states will attempt to neutralize the impact of location-based federal standards (that specifically target interstate pollution) in a way that actually exacerbates the underlying enforcement problem.     

State Intervention and the Role of History - state and private actors in Swedish network industries

Three main theoretical positions towards state intervention and regulation are discussed in relation to the case of Swedish infrastructure. The positive, the normative, and the political transaction cost approaches are examined in relation to the historic development of regulatory systems in civil aviation, railroads, and telecommunications. The authors show that governance regimes have historical roots, and develop differently due to policies implemented by state agencies. Three points are illuminated with a view to the interaction between state and private actors in the transport and communication sector. First, the role and function of the state agencies as well as the political system itself point to the need for a more refined analysis of state action. The active role of state agencies is also discussed emphasizing the difference between political decisions and the implementation of such decisions. Second, the role of a historical perspective is discussed, arguing that it makes possible a better understanding of the reasons behind choices of particular strategies. Finally, there might be good reason to expect the state either to act solely as a rent seeker, or as a promoter of optimal solutions.     

美国纳米计划管理预算及发展战略

布什政府把国家纳米计划（NNI）指定为多联邦机构参与研发的计划，旨在通过各机构间的经费、研发以及基础设施等方面的协调，使联邦政府对纳米的研发投入回报最大化。自布什2001年进驻白宫以来，美国联邦政府给国家纳米计划的投入从2001财年的4．534G美元增至2008财年11．674G美元（以2001年美元值计算），增长了158％。     

Managerial talent,motivation, and self-selection into public management

The quality of public management is a recurrent concern in many countries. Calls to attract the economy's best and brightest managers to the public sector abound. This paper studies self-selection into managerial positions in the public and private sector, using a model of a perfectly competitive economy where people differ in managerial ability and in public service motivation. We find that, if demand for public sector output is not too high, the equilibrium return to managerial ability is always higher in the private sector. As a result, relatively many of the more able managers self-select into the private sector. Since this outcome is efficient, our analysis implies that attracting a more able managerial workforce to the public sector by increasing remuneration to private-sector levels is not cost-efficient.