Intra-regional wage variation and regional disparity in the relative earnings of blacks

Studies of the relative earnings of Blacks in the U.S. have found that the ratio of Black to White male earnings is lower in the South than in the rest of the U.S. In this paper, it is argued that the usual methods of estimating earnings ratios are distorted by the omission of variables that generate equalizing wage differences which are place-specific. The results support this contention. It is concluded that the Black-White earnings ratio is only about 2.5 percent lower in the South than outside the South. It is not significantly different for those with less than 16 years of work experience.     

Disproportionate Black and Hispanic Unemployment in U.S. Metropolitan Areas: The Roles of Racial Inequality, Segregation and Discrimination in Male Joblessness

Abstract . Three common hypotheses about disproportionate Black and Hispanic unemployment among metropolitan males are tested, using data from the 1980 Population and the 1977 Economic Censuses. It is found that Black and Hispanic male unemployment is higher relative to that of Whites where jobs are most suburbanized and the minority population least so. This supports the view that segregation which separates minorities from job location elevates minority unemployment. It is also found that relative levels of Black, but not Hispanic, unemployment correlate positively to the minority percentage in metropolitan populations. This is consistent with the view that potential White gains from discrimination are greater where the Black (but not Hispanic) population is larger. Finally, both Blacks and Hispanics experience more disproportionate unemployment where their percentage of high school graduates is low relative to Whites, though this is less true for areas with larger Black populations. This suggests that job skill differentials also play some role in disproportionate minority unemployment.     

Identification issues in the public/private wage gap,with an application to Italy

This paper reviews some of the standard assumptions that are imposed in order to estimate the average public/private wage gap and that are mainly related to the possible selection of the sector. There are two contributions to the existing public/private wage gap literature. One is a better understanding of the identified parameters: standard estimators identify a local effect (LATE), which in general cannot be generalized to the entire population, as instead is almost always done. The other is the partial identification of the population average treatment effect, with an instrumental variable. To the best of my knowledge, this is the first paper in this literature that employs bounds. The technique is applied to male workers in Italy. For compliers, LATE estimates a wage advantage from working in the public sector greater than 30%. This return is within the narrowest bounds on the population average treatment effect that are consistent even with a much smaller gap (about 15% or more).     

Are Returns to Schooling Concentrated Among the Most Able? A Semiparametric Analysis of the Ability–earnings Relationships1

In this paper I explore the relationship between ability and log waves using flexible estimation techniques. I find evidence of nonlinearities in these relationships that vary across levels of schooling, and argue that ability‐sorting into higher education creates problems for accurately identifying the return to schooling over the entire ability support. Over an ability support that is “common” to those with and without a college education, I find that the college log wage premium is incerasing for the more able, and this premium grew during the period 1984–1994 for individuals at all points in the ability distribution. The growth of this wage premium over time also appears to have followed a “smoother” linear path for high‐ability individuals than individuals of lower ability.     

Owner and Organizational Characteristics of Black-and White-Owned Businesses: Self Employed Blacks Had Less Training, Fewer Resources, Less Profits, but Had Similar Survival Rates

Abstract . Owner and organizational characteristics of 94 Black-owned businesses and 385 White-owned businesses in Chicago, Boston, and Washington, D.C, are examined. Black business owners had fewer years of education and less business experience than their White counterparts. Black businesses were also smaller, more labor intensive, located in poorer neighborhoods, less likely to have insurance, visited by fewer customers per day, more likely to rent their shop space, and to be less profitable than White businesses. However, despite these organizational and individual characteristics, the survival rates of Black and White businesses were not significantly different. Logit analyses suggested that variables such as race, education, size of business, and the average income of those living in the neighborhood, in this sample, did have significant effects on business profitability but did not explain business survival.     

The Self-concept of Black and White Women: The Influences Upon Its Formation of Welfare Dependency, Work Effort, Family Networks, and Illnesses

Abstract . The concept of “self-efficacy” is used to test the hypothesis that the negative self-concept of welfare recipients coniributes to long term psychological and material dependency on such assistance. Self-efficacy focuses on the extent to which people are able to produce and regulate events in their lives and is associated with self-imposed performance expectations. The extent to which the minority status which Blacks occupy in this society decreases self efficacy relative to Whites is examined, using information generated from structured interviews with 290 low income Black and White women. Operationalizing the concept of self-efficacy with appropriate controls for socioeconomic status, family composition and other factors results in finding no racial differences in sense of self-efficacy between Black and White women. Observed differences in patterns of receipt of public assistance are found to be more directly related to the persistence of structural barriers to upward mobility that have differential impacts on Blacks and Whites. Long term receipt of public assistance is found to adversely affect both self-worth and work orientation/perceived efficacy for all women.     

Occupation and the journey-to-work: Some further analysis

This paper examines the impact of occupation upon commuting distances in the Toronto Census Metropolitan Area (CMA). Specifically, from the residential and job location patterns of each occupational group a “minimum distance” indicator of the degree of job-residence access of each occupational group is developed with the aid of a linear programming transportation model. The differences in “minimum distance” that must be travelled by the members of each occupational group are explained. The actual distances travelled to work by the members of each occupational group are then investigated and attempts are made to separate the determinants of each occupational group's average journey-to-work distance into two main factors—job residence access and propensity to commute. On the basis of the locational patterns, the analysis suggests that job residence access was generally greater for blue-collar workers than for white-collar workers. Although occupation did have an impact, then, on journey-to-work distance through its influence upon locational patterns of job and residence, little evidence of its effect on the propensity to commute was found. Rather, the results suggest that the main determinant of this factor was sex since female workers exhibited a far lower disposition to commute than did their male counterparts.     

Discrimination Against Women Reconsidered

Sexist earnings differences must not be confused with wage discrimination; wage discrimination against females is only one source of the large sexist earnings gap. The author agrees that his calculations of adjusted earnings ratios do not capture all changes in relative productivity between male and female workers.His present value estimates compared male and female earnings during entire productive lives, from labor market entrance to retirement. Hence they do reflect earnings variations at all age levels and thus the average experience of females with comparable educational attainment.     

The Nature of the Agrarian Land Question in the Republic of South Africa

Abstract . Most of the land in South Africa is dommnated by 4.5 million Whites. A tiny fraction of this key resource is designated for Black occupation in Black townships in White South Africa and for Black ownership in the ten “homelands.” Several interrelated factors account for the lop sided land distribution that exists in South Africa. The two most important factors are the removal of native occupants from the majority of the land, accomplished by early Dutch settlers, and legislative measures that were designed to guarantee a White controlled economy and foster economic development by assuring an abundant supply of disenfranchised and cheap black labor The extent of the inequality in the land distribution suggests that, from the viewpoint of ownership and control, Blacks were better off prior to 1652 when the first Dutch settlers arrived at the Cape.     

Managers and Wage Policies

Do individual top managers matter for wages and wage policies? Are there general differences in “style” among managers with respect to worker compensation? To shed light on these questions, we exploit a large panel dataset from Portugal that allows us to match workers, firms, and managers, and follow the movements of the latter across different firms over time. While accounting for the effect of worker and firm heterogeneity, we estimate the role of top manager fixed effects in determining wages and wage policies. The estimates suggest that (i) top managers have a significant influence on wages and wage policies; (ii) there exists different managerial “styles”; and (iii) managers’ (observable) attributes matter for worker compensation.     

Wage determination and sex discrimination in Japan

In spite of a significant contribution by female workers to the post-war economic expansion of Japan, the average female wage remains no more than half the average male wage. In his study, Nanshi Matsuura found that workers' wages are mostly determined by non-job-performance-related factors, some of which are based on discriminatory social elements.     

The Effects of local Fair Housing Ordinances on Housing Segregation: Their Impact Is Small, But It's an Important Positive Change Toward Integration

Abstract . State and local fair housing ordinances, patterned after federal legislation, are promoted by federal policy. This study investigates whether these local laws have had any effect on levels of residential segregation between Whites and Blacks, 1970-1980, by comparing changes in segregation for 111 cities characterized by different types of fair housing coverage. Results show average declines of 9 points in the index of dissimilarity, with cities covered by both state and local laws declining slightly more than cities with no fair housing coverage. Declines are not greater in cities with laws that are “substantially equivalent” to Title VIII vs. cities with non-equivalent laws. When changes in segregation were examined by a variety of population, economic and housing variables that may affect segregation change, it was found that local ordinances continue to have a small, but statistically significant effect. This effect varies according to the pattern of segregation change under study; deconcentration of ghetto areas and integration of White areas are not affected by type of local fair housing coverage.     

Gains from Wage Flexibility and the Zero Lower Bound*

We analyse the welfare impact of greater wage flexibility in the presence of an occasionally binding zero lower bound (ZLB) constraint on the nominal interest rate. We show that the ZLB constraint generally amplifies the adverse effects of greater wage flexibility on welfare when the central bank follows a conventional Taylor rule. When demand shocks are the driving force, the ZLB implies that an increase in wage flexibility reduces welfare even under the optimal monetary policy with commitment.     

Gains from Wage Flexibility and the Zero Lower Bound*

We analyse the welfare impact of greater wage flexibility in the presence of an occasionally binding zero lower bound (ZLB) constraint on the nominal interest rate. We show that the ZLB constraint generally amplifies the adverse effects of greater wage flexibility on welfare when the central bank follows a conventional Taylor rule. When demand shocks are the driving force, the ZLB implies that an increase in wage flexibility reduces welfare even under the optimal monetary policy with commitment.     

Henry George on Chattel and Wage Slavery: The American Social Philosopher Condemned Both Forms as Immoral, Irrational Denials of Equality

Abstract . In the writings of Henry George two types of slavery are mentioned: chattel (human) and industrial (economic), or wage slavery. Greater attention is paid to the latter than to the former. In fact, chattel slavery was typically referred to only as an example or analogy in the analysis of issues that were of more fundamental concern to George: wealth, property, land, etc. Nonetheless it is possible to construct from these references a remarkably comprehensive critique of human servitude on three levels: practical, economic, and philosphicotheological. Practically, chattel slavery is inefficient and a hindrance to technological discovery and production. Economically, it does not increase the wealth of the political economy, the “Greater Leviathan.” Philosophico-theologically, it denies the natural equality of human beings, and is based on erroneous assumptions concerning the rightful basis and nature of property. Economic (industrial) or wage slavery is worse, however. Chattel slavery is a dead or dying institution as George writes, whereas the more cruel and relentless industrial servitude is alive and growing.     

Global wages: we don't (yet) have lift‐off

• ? Policymakers, most notably in the US, have been expecting wage growth to pick up for some time as job markets tighten. But the data over the last six months have shown few indications of wage lift‐off. Our review of the latest evidence suggests that although labour markets are, on the whole, still tightening, we see increased downside risks to our forecasts for faster global wage growth in 2018–19.
• ? Rates of “churn” in labour markets – a possible precursor to faster wage growth – have continued to rise in the US and parts of Europe.
• ? But other structural factors may still be holding wages down. A recovery in prime‐age participation in the US may be helping to cap wage rises, as may a pool of “underemployed” workers in the US and UK (though this pool is shrinking fast).
• ? Productivity growth also remains weak, running at a 0.5%–1% annual pace in Q1 2017 across the US, UK, Germany and Japan. This compares with a G7 average pace of 1.5% per year in 1985–2006.
• ? Overall, the risks to our baseline forecast of faster wage growth in the major economies in 2018 look skewed to the downside. We expect wage growth to firm in 2018 by 0.5–1 percentage points in the US, UK, Germany and Japan. We would give this modal forecast a probability of around 60%, but with a 25% chance that wage growth is somewhat slower than this and only a 15% chance that it is higher.

     

Public Choice and Urban Water Quality*

Abstract . It is the purpose of this paper to examine critically the choice of “zero discharge” as me ultimate goal of our federal water pollution policy and to demonstrate that a goal of 90 percent removal of pollutants from effluents of urban areas will be more economically efficient. Our results indicate that in reaching “Zero discharge,” there is a minimal return in water quality for urban areas which are located on large bodies of water. The final conclusion is that the substantial resources, which would be required to surpass the level of 90 percent removal of pollutants, could be employed more effectively in other social programs.     

Environmental Quality and Social Equality:

Abstract . The problems and contradictions which arise when an economically “poor” region is mandated to remain environmentally “pure“ are examined. The Adirondack region of New York State is such an area, being now protected by the 1972 Adirondack Park Land Use Plan. This limitation on development for environmental reasons has serious consequences for the 120,000 permanent residents within the park boundaries who, through their legislators, vigorously opposed the controls. A number of examples of the conflicts which have arisen are cited and a framework for “comprehensive” rather than “fragmented”planning is suggested.     

Henry George and the Ethics of Economics

Abstract . Henry George's Progress and Poverty (1879) is a great ethical masterpiece. Its moral tone distinguishes the book. More than an economics test, it is a philosophic quest for justice, an impassioned declaration of the rule of natural law. Indignantly attacking the contention that economics has no place for natural law or ethics, George exclaims: “She [economics] has been degraded and shackled; her truths dislocated; her harmonies ignored.” On the contrary, George stresses, political economy (economics) is a science, and like all sciences, is governed by natural law. Furthermore, it is basically “moral.” Science must, of necessity, always lead to ethics. Natural law must, of necessity, always lead to morality, or justice.“The law of human progress, what is it but the moral law?” George asks. “Unless its foundation be laid in justice the social structure cannot stand.” The social ill that perpetuates poverty and the manifold evils it causes is private ownership of land and the private privilege of collecting its rent. “The fundamental law of nature, that the enjoyment by man shall be consequent upon his exertion, is thus violated.”