Charitable giving and cognitive ability

• This paper presents the first detailed examination of the relationship between cognitive ability and charitable giving using both cross‐sectional and longitudinal analysis. Data from a nationally representative, longitudinal survey of U.S. adults over age 50 indicated that higher cognitive ability—measured through a variety of cognitive tests—was associated with a higher probability of charitable giving, even after controlling for such intervening mechanisms as age, income, wealth, health, and education. This was true in comparisons both across different people at one point in time and within the same persons at different points in time. Understanding this relationship may affect the content and timing of appropriate charitable marketing approaches and help to explain other associations found in previous research on charitable giving.

Copyright © 2010 John Wiley & Sons, Ltd.     

Remuneration practice in a wages council sector: some empirical observations in hotels

The Wages Act 1986 aimed to change the substantive and procedural rules of remuneration practice in order to increase labour market flexibility. Here the findings of a subsequent study on wages and employment conditions are presented and assessed in relation to some of the potential effects of the 1986 legislation     

The impact of minimum wages on wages,work and poverty in Nicaragua

In this paper we use an individual- and household-level panel data set to study the impact of changes in legal minimum wages on a host of labor market outcomes including: a) wages and employment, b) transitions of workers across jobs (in the covered and uncovered sectors) and employment status (unemployment and out of the labor force), and c) transitions into and out of poverty. We find that changes in the legal minimum wage affect only those workers whose initial wage (before the change in minimum wages) is close to the minimum. For example, increases in the legal minimum wage lead to significant increases in the wages and decreases in employment of private covered sector workers who have wages within 20% of the minimum wage before the change, but have no significant impact on wages in other parts of the distribution. The estimates from the employment transition equations suggest that the decrease in covered private sector employment is due to a combination of layoffs and reductions in hiring. Most workers who lose their jobs in the covered private sector as a result of higher legal minimum wages leave the labor force or go into unpaid family work; a smaller proportion find work in the public sector. We find no evidence that these workers become unemployed.Our analysis of the relationship between the minimum wage and household income finds: a) increases in legal minimum wages increase the probability that a poor worker's family will move out of poverty, and b) increases in legal minimum wages are more likely to reduce the incidence of poverty and improve the transition from poor to non-poor if they impact the head of the household rather than the non-head; this is because the head of the household is less likely than a non-head to lose his/her covered sector employment due to a minimum wage increase and because those heads that do lose covered sector employment are more likely to go to another paying job than are non-heads (who are more likely to go into unpaid family work or leave the labor force).     

Prices and wages

Since last autumn, inflation appears to have settled into a range between 2½ and 3%. The fact that inflation has remained above target is largely due to a combination of last October's increase in university tuition fees, substantial rises in domestic energy bills at the turn of the year and high food price inflation…     

Prices and wages

CPI inflation has settled in a range of 2½–3% since last autumn, well above the 2% target. That inflation has remained high is largely due to last October's increase in university tuition fees, substantial rises in domestic energy bills at the turn of the year and high inflation in food prices…     

Prices and wages

The early part of 2014 has seen a further slowdown in inflation, with the CPI rate falling to 1.6% in March, the slowest pace since late‐2009. Sliding petrol and energy prices have played a significant role in the decline, as has the cooling in food price inflation. The impact of higher university fees has also eased relative to a year ago, further pulling down on the headline rate…     

Negative equity and wages

We examine the relationship between housing equity and wage earnings using nine waves of the national American Housing Survey from 1985 to 2003. Employing a rich set of time and place controls, a synthetic mortgage instrumental variable strategy, and a first difference estimator we find that people underwater on their mortgage command a significantly lower wage than other homeowners. The finding survives a number of robustness checks for reverse causality and unobserved heterogeneity. We also explore other determinants of “house lock” including loss aversion, a low existing mortgage interest rate and property tax assessment caps, but do not find these factors mitigate the effect of negative equity on wages.     

Minimum wages,wages and employment in various sectors in Honduras

This paper contributes to our understanding of the impact of minimum wages on labor markets of developing countries, where there are often multiple minimum wages and compliance is weak. We examine how changes in more than 22 minimum wages over 1990–2004 affect employment, unemployment and average wages of workers in different sectors, defined by coverage under the legislation. The evidence suggests that minimum wages are effectively enforced only in medium and large-scale firms, where a 1% increase in the minimum wage leads to an increase of 0.29% in the average wage and a relatively large reduction in employment of ? 0.46%. We find that public sector wages emulate minimum wage trends but the higher cost of labor does not reduce employment there. There are no discernable effects of minimum wages on the wages of workers in small-firms or the self-employed; yet, higher minimum wages may create more unemployment. We conclude that (even under our upper bound estimate of the effect on the wages of workers) the total earnings of workers in the large-firm covered sector fall with higher minimum wages in Honduras, which warrants a policy dialogue on the structure and level of minimum wages.     

Minimum wages and training

The paper analyzes the influence of minimum wages on firms' incentive to train their employees. We show that this influence rests on two countervailing effects: minimum wages (i) augment wage compression and thereby raise firms' incentives to train and (ii) reduce the profitability of employees, raise the firing rate and thereby reduce training. Our analysis shows that the relative strength of these two effects depends on the employees' ability levels. Our striking result is that minimum wages give rise to skills inequality: a rise in the minimum wage leads to less training for low-ability workers and more training for those of higher ability. In short, minimum wages create a ”low-skill trap.” We indicate that this effect may be important empirically. Finally, including workers' incentives to train themselves makes no major difference to our results.     

Stochastic reservation and offer wages

Relative employee and employer ignorance on the labor market is estimated by a two-tiered earnings frontier approach. The results show that some employees are less informed than others, but employers' information does not markedly differ between individual characteristics of employees.     

Seniority wages and establishment characteristics

A representative linked employer-employee panel and an innovative two-step estimation strategy are used to show that large and profitable establishments as well as establishments with a highly qualified workforce pay high seniority wages. Also collective bargaining coverage, works councils and reduced working time for older employees are positively correlated with seniority wages, the share of foreigners, females as well as initial wage levels for job entrants are negatively correlated. These results support an agency based motivation for seniority wages with older employees' wages set higher than their productivity.     

The effect of search frictions on wages

We aim to test whether the degree of informational search frictions in the labor market has a negative effect on wages. In a range of equilibrium search models of the labor market, this effect is predicted to be negative. Nevertheless, this has never been tested. We perform tests with matched worker–firm data. The worker data are informative on individual wages and labor market transitions, and this allows for estimation of the degree of search frictions. The firm data are informative on labor productivity. This allows us to investigate how the mean difference between labor productivity and wages in a market depends on the degree of frictions and other determinants, and to assess the quantitative relevance of frictions for wages.     

咨询行业薪酬分析及探讨

总体上看,我国咨询业尚处于起步阶段,在薪酬上面还存在着不少的问题。对此,文章提出了相应的解决措施。     

Czech female managers and their wages

This paper examines gender gaps in employment and wages among top- and lower-level managerial employees in the Czech Republic at the time of its accession to the EU. Using both least-squares and matching-based decomposition techniques, we find the wage gap among comparable men and women to be sizeable, but quite similar across firm hierarchy levels. The key reason why the average relative wage position of female top managers is worse compared to lower-ranking female employees is that women tend not to be at the helm of the highest-paying companies. Overall, the representation of women at the top of Czech firms as well as the structure of the gender wage gap there appears quite similar to those in the US.     

An investigation of the effects of decisional guidance and cognitive ability on decision-making involving uncertainty data

In their roles as users and providers of uncertainty data, decision-makers are confronted with choosing among a plethora of data formats offered by the decision support systems on most personal computers, but are offered little in the way of decisional guidance for choosing the most effective display format. This research investigated when and why decisional guidance should be provided. We found that in tasks involving uncertainty data, the decision-makers were more accurate and responded faster when symbolic tasks were matched with tabular displays and spatial tasks were matched with graphical displays. We also found that when subjects were provided with both matched and unmatched display formats, field independent individuals were more accurate for both spatial and symbolic tasks. When decisional guidance restricted the display formats to match the task types, field dependency did not significantly affect performance. This suggests that cognitive ability or field dependency is not a factor when the mental representation formulated is consistent with the problem representation.     

The impact of unemployment insurance taxes on wages

This paper examines the incidence of state unemployment insurance taxes on wages paid to workers in various demographic groups. The empirical work matches state level measures of unemployment insurance tax and benefit variables to data aggregated from the Current Population Survey on worker earnings for the period 1992 to 2002. Econometric evidence presented in the paper supports the paper's main hypothesis that UI tax rate structure has its greatest adverse impact on less mobile workers (prime age married women and young workers) and little impact on more mobile workers (prime age men).     

Quasi-structural estimation of a model of childcare choices and child cognitive ability production

This article evaluates the effects of maternal vs. alternative care providers’ time inputs on children’s cognitive development using the sample of single mothers in the National Longitudinal Survey of Youth. To deal with the selection problem created by unobserved heterogeneity of mothers and children, we develop a model of mother’s employment and childcare decisions. We then obtain approximate decision rules for employment and childcare use, and estimate these jointly with the child’s cognitive ability production function. To help identify our selection model, we take advantage of the plausibly exogenous variation in employment and childcare choices of single mothers generated by the variation in welfare rules across states and over time created by the 1996 welfare reform legislation and earlier State waivers.     

The effect of international firm mobility on wages and unemployment

Although the increase in international firm mobility is well documented, its effects on macroeconomic aggregates and the labour market remain controversial. Multinational enterprises (MNEs) benefit from an international outside option during wage bargaining, leading to a decrease in average wages. However, a strategic incentive to hire extra workers in a foreign (home) plant in order to reduce wages in the home (foreign) plant has an indirect positive effect on wages due to spillovers resulting from an increased demand for labour. In a framework of frictional unemployment, permitting MNEs leads to a decrease in unemployment. Abstracting from transport and plant fixed costs, MNEs lead to higher wages. Including transport and plant costs generally leads to lower wages, though the effects are small. The strategic hiring effect is important in mitigating the fall in wages.     

The effects of grants and wages on municipal labour demand

In this paper we investigate the determinants of municipal labour demand in Sweden 1988–1995. Utilising a major grant reform in 1993, through which a switch from mainly targeted to mainly general central government grants occurred, we are able to identify which type of grants that have the largest effects on municipal employment. We find a larger municipal employment elasticity with respect to grants before the reform, which we interpret as evidence that general grants have less employment effects than specific ones. We further find a short run wage elasticity of approximately −0.5 and a long run ditto of approximately −0.9, and a quite sluggish adjustment process: only 60% of the desired change in municipal employment is implemented in the first year.     

The ambiguous effect of minimum wages on hours

In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.