The Determinants of Shirking: Analysis and Evidence on Job Loser Unemployment

The unemployment rate captures the search behavior of job losers, as well as new entrants or reentrants to the labor force. The behavior of these unemployed groups can display significant differences. This paper extends the Shapiro-Stiglitz model to include an analysis of equilibrium job loss from shirking and empirically tests for the relationship between labor market conditions and job loss. This process identifies empirical differences between job losers and other unemployed members of the labor force. The equilibrium level of job loser unemployment is shown to fluctuate given the degree to which firms monitor shirking over the business cycle. While this extension does not change the core results of the efficiency wage model, it does provide some additional insights. For example, in equilibrium, everyone shirks some. Consequently, on-the-job leisure is a form of employee benefit that is regulated by the extent to which the firm monitors, reprimands, and fires shirkers. Across the business cycle the firm's shadow price of turnover changes, and hence the equilibrium level of job losers.Unemployment rate, unemployment

An Examination of the Impact of Union Presence on Social Agendas

Louis J. Pantuosco, PhD, is associate professor of economics in the College of Business at Winthrop University, Rock Hill, SC 29733. Vanessa Hill, PhD, is assistant professor of management in the College of Business at Winthrop University, Rock Hill, SC 29733

The Effect Of Public And Private Unions On State Economic Activity: Evaluating The Benefits To Organized Workers, Policymakers, And Companies

Freeman and Medoff’s analysis, “What Do Unions Do?” concluded unions were beneficial to organized workers, somewhat beneficial to the economy, yet not beneficial to the corporate bottom line. While there is some evidence to support these statements for 1983-1996, we determine that neither public nor private unions’ presence are correlated with wage or growth benefits at the state level from 1992-2005. A reduction in private sector unionization increases state productivity, with no adverse impact on growth, wages or unemployment rates. Public unions are statistically less detrimental than private unions, particularly in regard to unemployment rates

Where Will the Jobs Come From? Signs of Life From the Cemetery!

The US economy has a history of slow adjustment in the labor market. The question on the minds of many constituents is where will the jobs come from? In this paper we discuss the societal options for new employment in the United States and, in particular, South Carolina. We conclude that SC\u27s manufacturing sector is in an ideal position to recapture some of the ground it has lost over the past decade. It is important to note, however, that the actions of the SC legislators will determine the fate of the recovery as well as the sustainability of future manufacturing employment