Civic returns to education: its effect on homophobia

This paper addresses the question of whether higher levels of education contribute to greater tolerance of homosexuals. Using survey data for Ireland and exploiting a major reform to education, the abolition of fees for secondary schools in 1968, it is shown that increases in education causes individuals to be significantly more tolerant of homosexuals. Ignoring the endogeneity of education leads to much lower estimates of the effect of education. Replicating the model with data for the United Kingdom generates very similar results.education, homophobia, tolerance, social returns

Politics Matter: Changes in Unionization Rates in Rich Countries, 1960-2010

Researchers have offered several explanations for the decline in unionization. Many emphasize that "globalization" and the technological advances embodied in the "new economy" have made unions obsolete. However, if the decline in unionization is the inevitable response to the twin forces of globalization and technology, then we would expect unionization rates to follow a similar path in countries subjected to roughly similar levels of globalization and technology.This paper looks at union membership and coverage for 21 rich economies, including the United States, and finds over the last five decades a wide range of trends in union membership and collective bargaining. The national political environment, not globalization or technology, is the most important factor driving long-run changes in unionization rates in the United States

Firms' rents, workers' bargaining power and the union wage premium in France

In this paper, I study the wage premium associated with firm-level union recognition in France and show that this premium is due to a rent-extraction phenomenon. Using a large matched employer-employee dataset from a 2002 survey in France, I first estimate a series of wage determination models that control for individual and firm-level characteristics. I find that union recognition is associated with a 2-3% wage premium. To show that this premium results from a non-competitive phenomenon, I construct a bargaining model and estimate it empirically using a smaller but very detailed matched employer-employee dataset for 2004. The model predicts in particular that the wage premium obtained by unions should increase both with their bargaining power and with the amount of quasi-rents per worker available in the firms they organize. These predictions are validated empirically when I use the firms' market share as a proxy for their quasi-rents and the percentage of unionized as a proxy for the unions' bargaining power. All the results remain valid when I control for the firm-level workers' average productivity.union wage premium ; rent sharing ; bargaining

Promoting Economic Empowerment of Adolescent Women and Young Girl's Project, Rwanda: Baseline Survey Summary Report

This document presents a report on promoting economic empowerment of adolescent women and young girls. In October 2008, the World Bank launched the Adolescent Girls Initiative, a public-private partnership to promote the transition of adolescent girls from school to productive employment through innovative interventions that are tested, and then scaled-up or replicated if successful. The initiative is being piloted in 8 countries Afghanistan, Jordan, Lao PDR, Liberia, Haiti, Nepal, Rwanda, and South Sudan and is currently reaching some 17,000 girls. The objective of the Promoting Economic Empowerment of Adolescent Women and Young Girls project in Rwanda is to provide skills training and employment placement services to young women to enable them to establish themselves in profitable small enterprises. The interventions aim to provide them with a set of technical, business and life skills, along with institutional and social support, mentoring and links to credit

Wage Rigidity and Job Creation

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume wages are rigid. We explore whether this explanation is consistent with the data. We show that the wage of newly hired workers, unlike the aggregate wage, is volatile and responds one-to-one to changes in labor productivity. In order to replicate these findings in a search model, it must be that wages are rigid in ongoing jobs but flexible at the start of new jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle.wage rigidity, search and matching model, business cycle

Politics Matter: Changes in Unionization Rates in Rich Countries, 1960-2010

Researchers have offered several explanations for the decline in unionization. Many emphasize that “globalization” and the technological advances embodied in the “new economy” have made unions obsolete. However, if the decline in unionization is the inevitable response to the twin forces of globalization and technology, then we would expect unionization rates to follow a similar path in countries subjected to roughly similar levels of globalization and technology. This paper looks union membership and coverage for 21 rich economies, including the United States, and finds over the last five decades a wide range of trends in union membership and collective bargaining. The national political environment, not globalization or technology, is the most important factor driving long-run changes in unionization rates in the United States.unions, unionization, globalization, technology

The Eclipse of the Rule of Law: Trade Union Rights and the EU

This article examines the principle of the rule of law (TEU, article 2) and its application to social and economic rights. The paper considers what is meant by the rule of law, and contends that it as a minimum it must mean that EU institutions and member states must act in accordance with the law, including international legal obligations. The paper considers the extent to which EU member states comply with the right to organize, the right to bargain collectively and the right to strike in accordance with ILO Conventions 87 and 98 and the European Social Charters Articles 5 and 6. It is shown from an examination of the reports of the supervisory bodies that the overwhelming majority of Member States are in breach of one or more of their obligations under these various provisions, and that many are pushed into non-compliance by the actions and demands of the EU institutions. Despite attempts by the Commission to give substance to the rule of law, we have moved in the social sphere to a position in which the rules of law has been eclipsed, with profound implications for democracy and the future of the Union

The willingness to pay-willingness to accept gap, the "endowment effect," subject misconceptions, and experimental procedures for eliciting valuations

We conduct experiments to explore the possibility that subject misconceptions, as opposed to a particular theory of preferences referred to as the “endowment effect,” account for reported gaps between willingness to pay (“WTP”) and willingness to accept (“WTA”). The literature reveals two important facts. First, there is no consensus regarding the nature or robustness of WTP-WTA gaps. Second, while experimenters are careful to control for subject misconceptions, there is no consensus about the fundamental properties of misconceptions or how to avoid them. Instead, by implementing different types of experimental controls, experimenters have revealed notions of how misconceptions arise. Experimenters have applied these controls separately or in different combinations. Such controls include ensuring subject anonymity, using incentive-compatible elicitation mechanisms, and providing subjects with practice and training on the elicitation mechanism before employing it to measure valuations. The pattern of results reported in the literature suggests that the widely differing reports of WTP-WTA gaps could be due to an incomplete science regarding subject misconceptions. We implement a “revealed theory” methodology to compensate for the lack of a theory of misconceptions. Theories implicit in experimental procedures found in the literature are at the heart of our experimental design. Thus, our approach to addressing subject misconceptions reflects an attempt to control simultaneously for all dimensions of concern over possible subject misconceptions found in the literature. To this end, our procedures modify the Becker-DeGroot-Marschak mechanism used in previous studies to elicit values. In addition, our procedures supplement commonly used procedures by providing extensive training on the elicitation mechanism before subjects provide WTP and WTA responses. Experiments were conducted using both lotteries and mugs, goods frequently used in endowment effect experiments. Using the modified procedures, we observe no gap between WTA and WTP. Therefore, our results call into question the interpretation of observed gaps as evidence of loss aversion or prospect theory. Further evidence is required before convincing interpretations of observed gaps can be advanced

Union Leadership and Member Attitudes: A Multi-Level Analysis

[Excerpt] Analyses of union leadership roles show that union presidents should have both a within-union focus and an external focus. The authors combined multi-level survey data from 3,871 union members in 248 local teachers’ unions with archival and field staff data to examine relationships between leadership and members’ perceptions of union instrumentality and justice, union commitment, and participation. The results showed significant union-level effects on members’ beliefs about, and attitudes toward, their unions, attributable to the presidents’ internal and external leadership, wage outcomes, and union characteristics. Relationships between internally focused leadership and members’ loyalty and willingness to work for the union were partially mediated by perceptions of union instrumentality and justice. These perceptions fully mediated the relationship between externally focused leadership and union loyalty

Economic interests and the origins of electoral systems

Die gängige Begründung – basierend auf der bahnbrechenden Arbeit Rokkans – dafür, dass ein spezifisches Wahlsystem bevorzugt wird, ist, dass die Verhältniswahl („proportional respresentation“ oder „PR“) von einer zersplitterten Rechte eingeführt wurde, um ihre Klasseninteressen gegenüber denen einer wachsenden Linken zu verteidigen. Neue Erkenntnisse zeigen jedoch, dass PR tatsächlich die Linke und das Konzept der Umverteilung stärkt. Wir behaupten daher, dass die allgemein akzeptierte Sichtweise historisch, analytisch und empirisch falsch ist. Unsere Erklärung für die Einführung der PR ist eine grundlegend andere: Durch die Integration zweier gegensätzlicher Interpretationen von PR – das Konzept der minimal erfolgreichen Koalitionen [minimum winning coalition] gegenüber dem Konzept des Konsens – gehen wir davon aus, dass die Rechte PR übernommen hat, als ihre Unterstützung für konsensuelle rechtliche Rahmenbedingungen (besonders im Arbeitsmarkt und in der Ausbildung neuer Arbeitskräfte, wo spezifische Investitionen wichtig waren) wichtiger wurde als ihre Abneigung gegen die Umverteilungsauswirkungen; dies passierte in den Ländern, die vorher eine eng organisierte kommunale Wirtschaft hatten. In Ländern mit relativ schlechten Arbeitgeber- Arbeitnehmer-Beziehungen und einer schwach ausgeprägten Koordination zwischen Wirtschaft und Gewerkschaften hatte die Beibehaltung von Mehrheitssystemen die Funktion, die Linke in Schach zu halten. Diese Tatsache erklärt die enge Beziehung zwischen den bestehenden Varianten von Kapitalismus und Wahlsystemen und warum diese weiterhin fortbestehen. -- The standard explanation for the choice of electoral institutions, building on Rokkan’s seminal work, is that proportional representation (PR) was adopted by a divided right to defend its class interests against a rising left. But new evidence shows that PR strengthens the left and redistribution, and we argue the standard view is wrong historically, analytically, and empirically. We offer a radically different explanation. Integrating two opposed interpretations of PR – minimum winning coalitions versus consensus – we propose that the right adopted PR when their support for consensual regulatory frameworks, especially of labor markets and skill formation where co-specific investments were important, outweighed their opposition to the redistributive consequences; this occurred in countries with previously densely organized local economies. In countries with adversarial industrial relations, and weak coordination of business and unions, keeping majoritarian institutions helped contain the left. This explains the close association between current varieties of capitalism and electoral institutions, and why they persist over time.Economic Models of Political Processes,Government,War,Law,and Regulation (Comparative),Political Economy of Capitalism