Work Rules, Featherbedding, and Pareto-Optimal Union Management Bargaining

The recent literature on the economic behavior of unions is dominated by a controversy over whether or not bargaining is Pareto optimal. If unions care about employment as well as wages, efficient bargains between unions and management "should" involve both these variables rather than only wages. In fact, explicit bargaining over employment levels is virtually unknown. There is, however, implicit bargaining over employment in the form of rules concerning the labor/capital ratio, job assignment, work speeds, and the like.This paper examines a model of "semi-efficient" bargaining in which the unionand the firm bargain over wages and various types of work rules. The results are compared to the outcomes that are associated with fully efficient bargaining (i.e, over wages and the level of employment) and bargaining solely over wages. Of particular interest is the case in which the union and the firm mutually consent to "feather bedding" agreements (requiring the hiring of workers with zero marginal product). The major conclusion of the paper is that the outcome of collective bargaining is different in the case of negotiations over work rules and wages than in both the cases of fully efficient bargaining and of bargaining solely over wages. In general, however, the outcome of this "partially efficient" bargaining process is closer to the outcome of bargaining solely over wages than to that associated with fully efficient bargaining over both wages and employment.

Pay Differences Between Women's and Men's Jobs: The Empirical Foundations of Comparable Worth Legislation

Civil rights legislation of the 1960s made it illegal foran employer to pay men and women on different bases for the same work or to discriminate against women in hiring, job assignment, or promotion. Two decades later, however, the ratio of women's to men's earnings has shown little upward movement. Furthermore, major sex differences in occupational distribution persist with predominantly female jobs typically paying less than predominantly male jobs. This negative relationship between wage rates and femaleness of occupatiop has stimulated efforts, in both the judicial and political arenas, to establish "comparable worth" procedures for setting wage rates.This paper etimates the relationship between wages and femaleness of occupation and finds that it is indeed negative even after controlling for relevant worker and job characteristics. The magnitude of the relationship, however, implies a surprisingly small effect for a comprehensive comparable worth policy. The estimates indicate that, even if comparable worth succeeded in eliminating this negative relationship, the disparity between mean male and female wages would be reduced by well under ten percent of its current magnitude.

Changes in the Structure of Wages During the 1980's: An Evaluation of Alternative Explanations

Between 1979 and 1987 there were three significant changes in the wage structure in the United States. the pecuniary returns to schooling increased by about a third; the wages of older relative to younger workers with relatively low education increased to some extent; and the wages of women relative to men rose by almost ten percent. It is important for policy purposes to know why these changes occurred and whether they are temporary or permanent. The paper investigates several alternative explanations of these wage structure phenomena, including the most popular ones that their principal causes were shifts in the structure of product demand, skilled-labor saving technological change, and changes in the incidence and level of rents received by lower skilled workers. our reading of the evidence suggests that the major cause of the dramatic movements in the wage structure during the 1980's may have been some combination of changes in both production technology and the average relative nonobserved quality of different labor groups.

A Case History of Titanium Stress Corrosion in Nitrogen Tetroxide

An investigation of the incompatibility of titanium in certain grades of nitrogen tetroxide will be discussed as a case history. The methodology used in its resolution will point out some of the dangers associate with compatibility testing. The methodology also will present some of the difficulties associated with coordinating an investigation involving many contractors and U. S. Government agencies. The techniques employed in this investigation are described in considerable detail for the benefit of investigators with similar problems

In The Land Of Wedding Bells

https://digitalcommons.library.umaine.edu/mmb-vp/1874/thumbnail.jp

In The Land Of Wedding Bells

https://digitalcommons.library.umaine.edu/mmb-vp/1873/thumbnail.jp

In The Land Of Wedding Bells

https://digitalcommons.library.umaine.edu/mmb-vp/1872/thumbnail.jp

Economic Valuation for Wrongful Death

At common law, there was no right to recover damages for the wrongful death of another. North Carolina General Statutes § 28A-18-2, however, provides a cause of action for wrongful death in North Carolina, and provides the basis upon which damages may be awarded. The primary concerns of a plaintiff proceeding under the statute often center around proving those factors listed in the statute as possible components of the damage award. The difficulty inherent in a wrongful death action lies in reaching a fair and reasonable estimate of the lost income the decedent could have earned but for an untimely death, and the loss of such intangibles as decedent\u27s society and companionship. This article examines one method of offering evidence on those factors listed in section (b) of the statute, particularly loss of income and the value of services rendered by the decedent, through the use of an expert economist. Sections III and IV of the article present the approach of two expert economists to this task through the use of two hypothetical case studies