Wage differentials between skilled and unskilled workers

Wage Differentials Between Skilied and Unskilled Workers. — This paper analyzes the change in the ratio of wages paid to skilled and unskilled workers and the effect of these changes on employment by means of a simultaneous-equation pooled time-series cross-section analysis. Hypotheses are derived on the basis of specific theories. The data cover 23 industries over the period 1965–90. The explanatory variables are the cyclical deviations from long-run growth as well as several collective bargaining variables. The wage differential has a strong effect on employment of the two groups under investigation. However, demand has no significant impact on the wage relation.     

When does coordination pay?

In a continuous-time model of two symmetric open economies, with a floating exchange rate, we find that the pay-off to macroeconomic policy coordination depends systematically on how heterogeneous is their inflation experience. While monetary policy coordination improves welfare in handling a common rate of underlying inflation, it exacerbates the ‘time consistency’ problem arising when there are differences (as is illustrated diagrammatically). Since the principle of ‘certainty equivalence’ applies to time-consistent policy in linear quadratic models, we are also able to give a stochastic interpretation of the deterministic results.     

Strategic job analysis

The application of job analysis techniques makes the implicit assumption that information about a job as it presently exists may be used to develop programs to recruit, select, train, and appraise people for the job as it will exist in the future. Given a rapidly changing internal and external world it is likely that many jobs will change in the future. This article reviews some new techniques that, when added to traditional job analysis procedures, may facilitate strategic planning for the development of personnel procedures such as selection and training. Examples of the new technique are presented, followed by a discussion of some topics requiring future thought and research.     

The deterrent to dubious corporate behavior: Profitability,probability and safety recalls

In response to findings of abnormal stock market reactions following such dubious corporate behaviors as bribery, fraud, and the production of hazardous products, some researchers have argued that the stock market reaction is a sufficient deterrent to these behaviors so that additional regulation is not necessary. In this paper we examine stock market returns as a deterrent to dubious behavior in the production of defective automobiles. Relying on a broader range of assumptions about managerial behavior than are used in previous studies, we question the efficacy of the market as an instrument of social control.     

Sharpen your bargaining skills

As the health-care revolution continues, bargaining skills have become more crucial for doctors than ever before. If you want your practice to thrive, you must regularly negotiate with colleagues, practice administrators, allied health professionals, managed-care plans, business groups, hospitals, and the government. Yet medical schools and residency programs devote little if any time to negotiating skills. The "golden days," when physicians could afford to be mavericks, are over. Doctors must develop a new collaborative outlook to be successful and happy in their careers, says Leonard J. Marcus, Ph.D., lead author of the book "Renegotiating Health Care: Resolving conflict to Build Collaboration." He and his co-authors often conduct seminars for health professionals on improving bargaining skills. The following excerpt concerns the role of conflict in negotiation, and how to resolve it.     

Joining a capitated IPA: should you, or shouldn't you?

The "bygone" doctor practiced in the good old days under a relatively uncomplicated, clearly defined system. Physicians could afford to be independent. To survive in practice today, say the authors of "Renegotiating Health Care: Resolving Conflict to Build Collaboration," physicians must adapt to change or the health-care market will pass them by. Today's "evolving" doctor is a partner, contributing to and deriving benefit through collaborative patient-care networks, physician practice organizations, and medical services organizations. Historical rivalries have been forgotten as hospitals, insurers, and physicians seek and achieve innovative alliances. Still, resistance to these plans runs strong. The following story typifies one dilemma that faces physicians today. It concerns a hypothetical group practice that must decide whether to form a capitated individual practice association.