Unionization, Management Adjustment and Productivity

The effect of unionization on productivity is examined in this paper using time-series data on selected establishments in the U.S. cement industry. The analysis combines statistical estimation of the union impact and interviews with union and management officials to forge a link between econometric estimation and the traditional institutional analysis of union policy and management adjustment. The econometric analysis primarily deals with the problem of identifying the impact of the union in the face of firm specific effects and adjustments in labor quality. The case studies are designed to shed light on the question of how unionization affects productivity. The empirical results support the conclusion that unionization leads to productive changes in the operation of the enterprise. Evidence from the case studies suggests that much of the gain in productivity derives from a series of extensive changes in management personnel and procedure. These adjustments are a management response to changes in the employment contract which follow unionization.

Paying Vs. Waiting in the Pursuit of Specific Egalitarianism

We propose an allocation mechanism for publicly providing a private good such that the final allocation is simultaneously independent of income and increasing in strength of preference or need. The "pay or wait" mechanism consists of offering the good for sale at two outlets. The 'queuing' outlet would charge a low money price per unit, but high waiting timer per unit. The 'pricing' outlet would charge a relatively high money price with rapid service. High wage individuals will opt for the pricing outlet, and low wage individuals the queuing outlet. If the policy maker stocks the outlets in proportion to the distribution of high and low wage earners in the population, consumers of both wages will purchase the same amount on average, while those who value the good more relative to other goods will receive more of it. These outcomes are at risk if the good can be privately resold, but may be preserved if the policy maker can create transactions costs associated with resale.In-kind provision; redistribution; specific egalitarianism

The Effect of Neighbourhood Diversity on Volunteering: Evidence from New Zealand

An empirical literature has found that neighborhood heterogeneity lowers people's likelihood of contributing to public goods. We show that the estimated effect of any concave neighborhood characteristic on behavior may be biased when “large” rather than “small” neighborhoods are used. Large boundaries omit the effect of differences between small neighborhoods, biasing a characteristic's total effect even when the omitted differences lack economic effect. We next use three New Zealand census rounds to test whether volunteering rates are lowered by neighborhood heterogeneity by race/ethnicity, birthplace, income or language. We find boundaries matter, with only ethnic/racial heterogeneity robustly associated with lower volunteering.heterogeneity; neighbourhood effects; volunteering

Differential Time and Money Pricing as a Mechanism for In-kind Redistribution

We propose a mechanism to implement the distributional goal of "specific egalitarianism", or that allocation of a good be independent of income, but increasing in relative strength of preference or need. Governments could offer the good at multiple "outlets" that charge different money and time prices. Individuals would self-select between outlets based on time opportunity cost. We show conditions under which differential pricing achieves specific egalitarianism more efficiently than uniform public provision funded from income tax, with or without optional private purchase. Differential pricing becomes more efficient than uniform provision as 1) the relative importance of the good rises, 2) the elasticity of substitution between goods falls, 3) variation in preferences increases and 4) income inequality rises or the proportion of the poor falls.In-kind provision; specific egalitarianism; differential pricing

Verbal paired associates and the hippocampus: The role of scenes

It is widely agreed that patients with bilateral hippocampal damage are impaired at binding pairs of words together. Consequently, the verbal paired associates (VPA) task has become emblematic of hippocampal function. This VPA deficit is not well understood and is particularly difficult for hippocampal theories with a visuospatial bias to explain (e.g., cognitive map and scene construction theories). Resolving the tension among hippocampal theories concerning the VPA could be important for leveraging a fuller understanding of hippocampal function. Notably, VPA tasks typically use high imagery concrete words and so conflate imagery and binding. To determine why VPA engages the hippocampus, we devised an fMRI encoding task involving closely matched pairs of scene words, pairs of object words, and pairs of very low imagery abstract words. We found that the anterior hippocampus was engaged during processing of both scene and object word pairs in comparison to abstract word pairs, despite binding occurring in all conditions. This was also the case when just subsequently remembered stimuli were considered. Moreover, for object word pairs, fMRI activity patterns in anterior hippocampus were more similar to those for scene imagery than object imagery. This was especially evident in participants who were high imagery users and not in mid and low imagery users. Overall, our results show that hippocampal engagement during VPA, even when object word pairs are involved, seems to be evoked by scene imagery rather than binding. This may help to resolve the issue that visuospatial hippocampal theories have in accounting for verbal memory

Productivity Growth and R&D at the Business Level: Results From the PIMS Data Base

This paper presents the results of a study of productivity growth and R&D in the 1970s using data on narrowly defined 'business units within a firm. Estimates are developed under different assumptions about technology ,industry effects, and changes in the return to R&D over time. The R&D data are broken down into process and product expenditures, and some information is available on past success in developing proprietary technology, andontheincidenceofma3or changes in technology in the recent past. The results suggest a significant relationship between R&D and the growth of productivity; in versions using total factor productivity as the dependent variable, the estimated rate of return to R&D investment is about 20 percent. We find some evidence that R&D has its biggest effect on productivity in those markets where major changes in technology have occurred in the recent past. Previous success in developing proprietary process technology affects total factor productivity directly, but appears to have little effect on estimated returns to R&D. The notion that the productivity of R&D declined in the l970sfinds Little support in this data. Irrespective of model specification, trends in the R&D coefficient are substantively arid statistically insignificant. Our calculations suggest that reduced investment in R&D may have accounted for at least 10 percent of the decline in total factor productivity growth in the l970s.

Labor Force Participation: Timing and Persistence

This paper examines the relative importance of timing and persistence elements in explaining cyclical fluctuations in labor supply. Data from the natural experiment provided by World War I1 and cross-sectional data on American local labor markets, as well as aggregate time-series data are used in the empirical work. We find little evidence that timing effects play an important role in labor market dynamics. The evidence suggests that views emphasizing persistence are more accurate, and that previous employment tends to raise the probability of subsequent employment.

Labor Market Dynamics and Unemployemnt: A Reconsideration

macroeconomics, unemployment