Less Myth, More Measurement: Decomposing Excess Returns from the 1989 Minimum Wage Hike

In the book Myth and Measurement, Card and Krueger (1995) examine the economic impact of the 1989 minimum wage hike on the welfare of 110 firms which employ a disproportionate number of minimum-wage workers. Their results show mixed evidence that excess returns associated with news about the 1989 minimum-wage legislation. This paper re-examines this question by decomposing excess returns. Our simple and intuitive approach attributes excess returns to either differences in market performances (economy-wide factors) or firm-specific traits (individualistic factors). We likewise show that, generally, minimum wage legislation had little or no effect on employer wealth. However, by decomposing total excess returns, we find that the apparent lack of an effect is a consequence of two off-setting forces: (1) a negative effect arising from firm-specific traits (adverse information on minimum-wage worker employers) and (2) a positive effect arising from market performance. In other words, we show that while the aggregate effect of the 1989 minimum wage hike was neutral, there was a significant negative impact on firms that was neutralized by positive market performance.minimum wage, excess returns, decomposition

Decomposing Excess Returns in Stochastic Linear Models

We present a theorem helpful in estimating the mean and variance of a linear function with arbitrary multivariate randomness in its coefficients and variables. We derive a generalized decomposition result from two random linear functions in which the result can be applied to most models using event study analysis. Taking the 1989 minimum wage hike as an example, we found that the apparent lack of an effect is a consequence of two off-setting forces: 1) a negative effect arising from firm-specific traits and 2) a positive effect arising from market performance. In sum, we bring to the analysis a method that helps provide additional insights and can be applied to much of the work using event study.excess returns, minimum wage, decomposition, event study

Dialkylaluminium 2-imidazolylphenolates: Synthesis, characterization and ring-opening polymerization behavior towards lactides

The stoichiometric reaction of the 2-imidazolylphenols (L1–L9) with the trialkylaluminium reagents AlR₃ (R = Me, Et and iBu), afforded the corresponding dialkylaluminium 2-imidazolylphenolate complexes [R₂Al(L1–L9)] (C1–C11), which were characterized by ¹H/¹³C NMR spectroscopy and by elemental analysis. The molecular structures of the representative complexes C1, C2, C4, C6 and C11 were determined by single-crystal X-Ray diffraction, and revealed a distorted tetrahedral geometry at aluminum. These dialkylaluminium 2-imidazolylphenolates (C1–C11) could efficiently catalyze the ring-opening polymerization of lactides to afford high molecular weight polylactide, both in the presence and absence of BnOH, and as such represent rare examples of the use of bi-dentate ligation at aluminum in such lactide polymerization systems. On the basis of the polymerization results for l-lactide, d-lactide and rac-lactide, the nature of the ligands and the aluminum bound alkyls were found to significantly affect the catalytic activity as well as the properties of the resultant polylactides

Give Me Your Wired and Your Highly Skilled: Measuring the Impact of Immigration Policy on Employers and Shareholders

The paper links finance theory to labor economics and political economy in the context of migration and immigration policy. Most research treating the impact of immigration has focused on the consequences for employees as measured by wages, earnings, and employment. Less is known about the impact on employers. We lack answers to basic questions concerning the quantitative impact of immigrants on employer profit, and which employers are most likely to gain (suffer) increased (reduced) profits as a result of immigration. Using event study analysis, I measure the impact of immigration policy on the profit of employers and shareholders, particularly in those industries with high needs for skilled immigrants. The American Competitiveness and Workforce Improvement Act (ACWIA) of 1998 nearly doubled the available number of H-1B visas for skilled foreign workers in FY 1999. It was the first time that the U.S. government raised the annual cap of H-1B visa since 1990. I focus on this bill and analyze whether and by how much its passage increased shareholders’ profit. The empirical results show that employers and shareholders in the top H-1B visa user industries enjoyed significant and positive returns with the passage of the ACWIA of 1998. Shareholders in high-tech industries (the top users of H-1B visa, 80% of total) such as "Computers and related equipment", and "Computer and data processing services" gained, respectively, an average 21.54% (15.88 if weighted) and 22.77% (18.11 if weighted) in cumulative excess returns in the month after the Act was passed, while industries with little need for H-1B visas experienced no significant changes in cumulative excess returns. Robustness testing including international factor comparisons, semiparametric modeling and a sample-split Chow structural break test support the results.skilled immigrants, immigration policy, employers, shareholders, event study, H-1B visa

Give me your wired and your highly skilled: measuring the impact of immigration policy on employers and shareholders

This paper links finance theory to labor economics in the context of migration and immigration policy. Using event analysis, I measure the impact of immigration policy on the firm profits, in particular the American Competitiveness and Workforce Improvement Act (ACWIA) of 1998 nearly doubled the available number of H-1B visas for skilled foreign workers in FY 1999. The empirical results show that top H-1B visa user industries enjoyed significant and positive excess returns with the passage of the Act, while industries with little need for H-1B visas experienced no significant changes. Several robustness checks support the results.Skilled immigrants, immigration policy, employers, shareholders, event study, H-1B visa

Minimum Wages in China: Evolution, Legislation, and Effects

This book considers the positive and negative impacts of the minimum wage policy in China. Since China enacted its first minimum wage law in 1994, the magnitude and frequency of changes in the minimum wage have been substantial, both over time and across jurisdictions. The results from China’s experience show that rapidly increasing minimum wages have helped increase average wages and reduce the gender wage gap, income inequality, and poverty. However, the fast-rising minimum wage has also resulted in the loss of employment for young adults, women, low-skilled workers, and migrant workers. Additionally, higher minimum wages have a negative impact on firm profitability and adverse effects on firm’s human capital investment. In summary, the Chinese minimum wage policy has shown both positive and negative impacts on the affected workers. Through unpacking these findings, the book highlights the importance of rigorous research to inform evidence-based policymaking and provides lessons for other transitional and developing economies. -- publisherhttps://digitalcommons.bucknell.edu/books/1245/thumbnail.jp

Half-titanocene 5-t-butyl-2-(1-(arylimino)methyl)quinolin-8-olate chlorides: Synthesis, characterization and ethylene (co-) polymerization behavior

A series of half-titanocene chloride complexes bearing 5-t-butyl-2-(1-(arylimino)methyl)quinolin-8-olate ligands (L), CpTiLCl₂, has been synthesized in acceptable yields by the stoichiometric reaction of CpTiCl₃ with the respective potassium 5-t-butyl-2-(1-(arylimino)methyl)quinolin-8-olate. All half-titanocene complexes were fully characterized by elemental analysis and NMR spectroscopy, and the molecular structures of the representative complexes C1 and C2 were confirmed as pseudo octahedral at titanium by single-crystal X-ray diffraction. When activated with methylaluminoxane (MAO) or modified methylaluminoxane (MMAO), all titanium complexes exhibited good activities (up to 4.8 × 10⁵ g mol⁻¹(Ti) h⁻¹) towards ethylene polymerization. The obtained polyethylene exhibited ultra-high molecular weight (up to 11.82 × 10⁵ g mol⁻¹) with narrow polydispersity. Furthermore, effective co-polymerization of ethylene with 1-hexene or 1-octene was achieved with several percentages of co-monomer incorporation in the resultant polyethylenes

A readily accessible multifunctional probe: simultaneous recognition of the cation ZN²⁺ and the anion F⁻ via distinguishable wavelengths

The probe 1 was readily prepared via condensation of 8-formyl-7-hydroxy-coumarin and carbonic dihydrazide in a one-step procedure. Probe 1 exhibited high sensitivity and selectivity towards Zn²⁺ and F⁻ through a “turn-on” fluorescence response and/or ratiometric colorimetric response with low detection limits of the order of 10-8 M. The complex behaviour was fully investigated by spectral titration, isothermal titration calorimetry, 1H NMR spectroscopic titration and mass spectrometry. Interestingly, probe 1 not only recognizes the cation Zn²⁺ and the anion F⁻, but can also distinguish between these two ions via the max wavelength in their UV-vis spectra (360 nm for 1-Zn²⁺ versus 400 nm for 1-F⁻ complex) or their fluorescent spectra (λₑₓ / λₑm = 360 nm/ 454 nm for 1-Zn²⁺ versus λₑₓ / λₑm = 400 nm/ 475 nm for 1-F⁻ complex) due to their differing red-shifts. Additionally, probe 1 has been further explored in the detection of Zn²⁺ in living cells