The Price is Right? Pay Settlements and Nominal Wage Rigidity in Britain

We examine representative, group‐level wage settlement data to augment the debate on nominal pay rigidity in Britain. We investigate the characteristics of groups that settle at zero and the role of within‐firm and external influences. Nominal settlement cuts are rare. Zero nominal wage settlements are more common, but still relatively unusual, highest during (low‐inflation) recessionary periods. Small groups, above all firms under duress, appear most likely to settle at zero. Once a group settles at zero it is unlikely to do so again in the short run.     

Market Size and Economic Integration when Labor Markets are Unionized

The paper explores the effects of economic integration on trade, wages, and welfare when market sizes differ. A duopoly model with two‐way intraindustry trade in similar products and with unionized labor markets is employed. It is confirmed that, for a wide range of different relative market sizes, integration leads to higher wages, employment, and welfare. However, where market sizes differ widely, the reduction of trade barriers leads to a reduction of wages, employment, and—in some circumstances—welfare in the country with the large market.     

Money Out of Thin Air: The nationwide Narrowband pcs Auction

The Federal Communications Commission held its first auction of radio spectrum at the Nationwide Narrowband PCS Auction in July 1994. The simultaneous multiple-round auction, which lasted five days, was an ascending bid auction in which all licenses were offered simultaneously. This paper describes the auction rules and how bidders prepared for the auction. The full history of bidding is presented. Several questions for auction theory are discussed. In the end, the government collected $617 million for ten licenses. The auction was viewed by all as a huge success an excellent example of bringing economic theory to bear on practical problems of allocating scarce resources.     

Does the ADA Disable the Disabled?— More Comments

This article examines how best to identify individuals with disabilities for analysis of the impact of the Americans with Disabilities Act (ADA) of 1990. It also explores whether amending the ADA to broaden its definition of disability can be expected to improve the employment prospects of those who seek its protections. Answering these questions requires that we learn much more about the labor force participation decisions of those with disabilities. Our aim here is to encourage further consideration and analysis of these and related questions regarding the possible effects of the ADA and of other environmental factors that affect the labor force participation of those with disabilities.     

Retaining Open Space with Purchasable Development Rights Programs

This paper examines the preservation of farmland through purchasable development rights. In a comparison of the estimated costs and benefits associated with the development of open space from 1982 to 1992, we show that these programs may provide a net benefit to society. An econometric model is employed to address the question of what factors explain both the creation of these programs and the magnitude of farmland preservation. Elasticity measures derived from the model indicate that a wide range of ecological and sociological variables are important in explaining the activity in purchasable development rights programs.