WP 18 - Permanent and transitory wage inequality of British men, 1975-2001: Year, age and cohort effects

We examine the variance-covariance structure of log-wages over time and over the lifecycle of British men from 1975 to 2001, hereby controlling for cohort effects. Wage inequality has risen sharply during the 1980’s and early 1990’s and remained fairly constant in the second half of the 1990’s. We show that this increase is caused mainly by a strong increase in transitory wage inequality and only to a lesser extent to an increase in permanent wage inequality. The transitory component of log-wages is, however, highly persistent over time: serial correlation decreases from 0.88 over a one-year period to 0.65 over a ten-year period. The constant wage inequality in the second half of the 1990’s is attributed to a slight decrease in permanent wages inequality, a stabilization of the variance of the transitory wage shock, and the strong decrease in transitory wage inequality for the cohorts entering employment since the end of the 1980’s. Ignoring age effects in transitory wage inequality and cohort effects, as is commonly done, leads to severely distorted inferences concerning the changes in permanent wage inequality.Panel Data, Wage Distribution, Inequality, Mobility. JEL codes: C23, D31, J31, J60

The relationship between stock prices, house prices and consumption in OECD

This paper analyzes the relationship between stock prices, house prices and consumption using data for 16 OECD countries. The panel data analysis suggests that the long-run responsiveness of consumption to permanent changes in stock prices is higher for countries with a market-based financial system than for countries with a bank-based financial system. Splitting the sample into the 1980s and 1990s further shows an increased sensitivity in the 1990's of consumption to permanent changes in stock prices for both countries with bank-based financial systems as well as countries with market-based financial systems. The relationship between changes in consumption and changes in house prices is positive for the second sample period across all specifications and financial systems.

Design innovation for the 1990's

Statement of responsibility on title-page reads: Richard K. Lester, Michael J. Driscoll, Michael W. Golay, David D. Lanning, Lawrence M. Lidsky, Norman C. Rasmussen and Neil E. Todreas"September 1983."Includes bibliographical reference

Advanced modulation technology development for earth station demodulator applications

The purpose of this contract was to develop a high rate (200 Mbps), bandwidth efficient, modulation format using low cost hardware, in 1990's technology. The modulation format chosen is 16-ary continuous phase frequency shift keying (CPFSK). The implementation of the modulation format uses a unique combination of a limiter/discriminator followed by an accumulator to determine transmitted phase. An important feature of the modulation scheme is the way coding is applied to efficiently gain back the performance lost by the close spacing of the phase points

Trade and wages in Uruguay in the 1990’s

The main facts of the Uruguayan labour market along the nineties may be summarized in three main phenomena: increase in wage inequality with an increase of the skill wage premium and changes in the inter-industrial wage structure; destruction of unskilled jobs, associated to trade openness and changes in the productive specialization that implied technical change biased to the employment of workers with higher skill; decrease of the role of unions in wage negotiation. This paper attempts an empirical strategy to evaluate the impact of increased trade openness in the industry wage premiums and in the skill wage premiums, combining micro and macro data. We find a link between trade openness and both industry and wage premiums in the 1990’s in Uruguay: in a given industry, reduced protection implied an increase in the skill premium and a lower industry relative wage

Rotorcraft In-Flight Simulation Research at NASA Ames Research Center: A Review of the 1980's and plans for the 1990's

A new flight research vehicle, the Rotorcraft-Aircrew System Concepts Airborne Laboratory (RASCAL), is being developed by the U.S. Army and NASA at ARC. The requirements for this new facility stem from a perception of rotorcraft system technology requirements for the next decade together with operational experience with the Boeing Vertol CH-47B research helicopter that was operated as an in-flight simulator at ARC during the past 10 years. Accordingly, both the principal design features of the CH-47B variable-stability system and the flight-control and cockpit-display programs that were conducted using this aircraft at ARC are reviewed. Another U.S Army helicopter, a Sikorsky UH-60A Black Hawk, was selected as the baseline vehicle for the RASCAL. The research programs that influence the design of the RASCAL are summarized, and the resultant requirements for the RASCAL research system are described. These research programs include investigations of advanced, integrated control concepts for achieving high levels of agility and maneuverability, and guidance technologies, employing computer/sensor-aiding, designed to assist the pilot during low-altitude flight in conditions of limited visibility. The approach to the development of the new facility is presented and selected plans for the preliminary design of the RASCAL are described

On the Importance of Measuring Payout Yield: Implications for Empirical Asset Pricing

Previous research showed that the dividend price ratio process changed remarkably during the 1980's and 1990's, but that the total payout ratio (dividends plus repurchases over price) changed very little. We investigate implications of this difference for asset pricing models. In particular, the widely documented decline in the predictive power of dividends for excess stock returns in time series regressions in recent data is vastly overstated. Statistically and economically significant predictability is found at both short and long horizons when total payout yield is used instead of dividend yield. We also provide evidence that total payout yield has information in the cross-section for expected stock returns exceeding that of dividend yield and that the high minus low payout yield portfolio is a priced factor. The evidence throughout is shown to be robust to the method of measuring total payouts.

The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy

Using a unique longitudinal representative survey of both manufacturing and non-manufacturing businesses in the United States during the 1990's, I examine the incidence and intensity of organizational innovation and the factors associated with investments in organizational innovation. Past profits tend to be positively associated with organizational innovation. Employers with a more external focus and broader networks to learn about best practices (as proxied by exports, benchmarking, and being part of a multi-establishment firm) are more likely to invest in organizational innovation. Investments in human capital, information technology, R&D, and physical capital appear to be complementary with investments in organizational innovation. In addition, non-unionized manufacturing plants are more likely to have invested more broadly and intensely in organizational innovation.

The Trade-Off Between Risk and Control in Corporate Ownership

This paper analyses the risk control trade o$in corporate ownership. It presents a simple model in which large shareholders decide their share depending on their risk aversion, risk-neutral effects attached to rm size and the e$ectiveness of di$erent (external and internal) mechanisms for controlling managers behaviour. Two institutional settings in which the expected benefits from control appear to overcome risk aspects are explored: the USA at the turn of the 20th century and Spain in the 1990's. The empirical evidence seems to support the predictions of the model regarding the relationship between ownership concentration, the characteristics of governance and the size of the firm.Corporate Governance;Disciplinary Mechanisms;Large Shareholders