Wage Compression and the Division of Returns to Productivity Growth: Evidence from EOPP

This paper analyzes the relationship between wages and productivity during the early years of an employment relationship. Data from the Employment Opportunity Pilot Project show that worker productivity grows substantially during the first two years on the job, with most of the growth in productivity occurring at the very start of the job. Correcting for measurement error and the fact that expected productivity beyond the start of the job may be folded into the starting wage if wage revisions are not instantaneous, one finds that variation in productivity is only partially reflected in wages. Not only is productivity growth stemming from human capital accumulation while on the job only partially reflected in wage growth, but starting productivity differences for workers in the same job – in large part driven by differences in relevant experience - are only partially reflected in starting wage differences. Our empirical findings can be explained by a simple model of employer – worker cost sharing in which (a) the cost to a worker of locating and moving to a new job increases with the worker's stock of human capital and (b) equity norms prevent employers from paying senior workers lower wages than junior workers who are no more productive.Wages, Productivity, Compression

How Responsive are Quits to Benefits?

It has been argued that one of the functions of fringe benefits is to reduce turnover. However, due to a lack of data, the effect on quits of the marginal dollar of benefits relative to the marginal dollar of wages is an under-researched topic. This paper uses the benefit incidence data in the 1979 Cohort of the National Longitudinal Survey of Youth (NLSY79) and the cost information in the National Compensation Survey to impute benefit costs. The value of imputed benefits is then entered as an explanatory variable in a mobility equation that is estimated using turnover information in the NLSY. We find that the quit rate is much more responsive to fringe benefits than to wages; this is even more the case with total turnover. We also find that benefit costs are correlated with training provision. Due to the high correlation of the costs of individual benefits, it is not possible to disentangle the effects of separate benefits. An interesting feature of the model that we develop for interpreting the strong negative relationship between fringe benefits and turnover is that abstracting from heterogeneity, workers must at the margin place a higher valuation on a dollar of wages than a dollar of benefits since otherwise an employer could profit by switching compensation from wages to fringes. Worker heterogeneity modifies this result and reinforces any causal relationship between fringe benefits and turnover provided that more stable workers have a greater preference for compensation in the form of fringes.Turnover, Fringe Benefits

The star formation histories of low surface brightness galaxies

We have performed deep imaging of a diverse sample of 26 low surface brightness galaxies (LSBGs) in the optical and the near-infrared. Using stellar population synthesis models, we find that it is possible to place constraints on the ratio of young to old stars (which we parametrize in terms of the average age of the galaxy), as well as the metallicity of the galaxy, using optical and near-infrared colours. LSBGs have a wide range of morphologies and stellar populations, ranging from older, high-metallicity earlier types to much younger and lower-metallicity late-type galaxies. Despite this wide range of star formation histories, we find that colour gradients are common in LSBGs. These are most naturally interpreted as gradients in mean stellar age, with the outer regions of LSBGs having lower ages than their inner regions. In an attempt to understand what drives the differences in LSBG stellar populations, we compare LSBG average ages and metallicities with their physical parameters. Strong correlations are seen between an LSBG's star formation history and its K-band surface brightness, K-band absolute magnitude and gas fraction. These correlations are consistent with a scenario in which the star formation history of an LSBG primarily correlates with its surface density and its metallicity correlates with both its mass and its surface densit

The evolution of AAOE observed constituents with the polar vortex

One of the difficulties in determining constituent trends from the ER-2 flight data is the large amount of day to day variability generated by the motion of the polar vortex. To reduce this variability, the observations have been transformed into the conservative (Lagrangian) reference frames consisting of the coordinate pairs, potential temperature (PT) and potential vorticity (PV), or PT and N2O. The requirement of only two independent coordinates rests on the assumption that constituent distributions and their chemical processes are nearly zonal in that coordinate system. Flight data is used everywhere for these transformation except for potential vorticity. Potential vorticity is determined from level flight segments, and NMC PV values during flight dives and takeoffs are combined with flight data in a smooth fashion

RADIAL PROFILE OF THE 3.5 keV LINE OUT TO R 200 IN THE PERSEUS CLUSTER

The recent discovery of the unidentified emission line at 3.5 keV in galaxies and clusters has attracted great interest from the community. As the origin of the line remains uncertain, we study the surface brightness distribution of the line in the Perseus cluster since that information can be used to identify its origin. We examine the flux distribution of the 3.5 keV line in the deep Suzaku observations of the Perseus cluster in detail. The 3.5 keV line is observed in three concentric annuli in the central observations, although the observations of the outskirts of the cluster did not reveal such a signal. We establish that these detections and the upper limits from the non-detections are consistent with a dark matter decay origin. However, absence of positive detection in the outskirts is also consistent with some unknown astrophysical origin of the line in the dense gas of the Perseus core, as well as with a dark matter origin with a steeper dependence on mass than the dark matter decay. We also comment on several recently published analyses of the 3.5 keV line.United States. National Aeronautics and Space Administration (Contracts NNX14AF78G and NNX123AE77G

WARNING: Physics Envy May Be Hazardous To Your Wealth!

The quantitative aspirations of economists and financial analysts have for many years been based on the belief that it should be possible to build models of economic systems - and financial markets in particular - that are as predictive as those in physics. While this perspective has led to a number of important breakthroughs in economics, "physics envy" has also created a false sense of mathematical precision in some cases. We speculate on the origins of physics envy, and then describe an alternate perspective of economic behavior based on a new taxonomy of uncertainty. We illustrate the relevance of this taxonomy with two concrete examples: the classical harmonic oscillator with some new twists that make physics look more like economics, and a quantitative equity market-neutral strategy. We conclude by offering a new interpretation of tail events, proposing an "uncertainty checklist" with which our taxonomy can be implemented, and considering the role that quants played in the current financial crisis.Comment: v3 adds 2 reference

Global and local concerns: What attitudes and beliefs motivate farmers to mitigate and adapt to climate change?

In response to agriculture\u27s vulnerability and contribution to climate change, many governments are developing initiatives that promote the adoption of mitigation and adaptation practices among farmers. Since most climate policies affecting agriculture rely on voluntary efforts by individual farmers, success requires a sound understanding of the factors that motivate farmers to change practices. Recent evidence suggests that past experience with the effects of climate change and the psychological distance associated with people\u27s concern for global and local impacts can influence environmental behavior. Here we surveyed farmers in a representative rural county in California\u27s Central Valley to examine how their intention to adopt mitigation and adaptation practices is influenced by previous climate experiences and their global and local concerns about climate change. Perceived changes in water availability had significant effects on farmers\u27 intention to adopt mitigation and adaptation strategies, which were mediated through global and local concerns respectively. This suggests that mitigation is largely motivated by psychologically distant concerns and beliefs about climate change, while adaptation is driven by psychologically proximate concerns for local impacts. This match between attitudes and behaviors according to the psychological distance at which they are cognitively construed indicates that policy and outreach initiatives may benefit by framing climate impacts and behavioral goals concordantly; either in a global context for mitigation or a local context for adaptation

Intracellular Electric Field and pH Optimize Protein Localization and Movement

Mammalian cell function requires timely and accurate transmission of information from the cell membrane (CM) to the nucleus (N). These pathways have been intensively investigated and many critical components and interactions have been identified. However, the physical forces that control movement of these proteins have received scant attention. Thus, transduction pathways are typically presented schematically with little regard to spatial constraints that might affect the underlying dynamics necessary for protein-protein interactions and molecular movement from the CM to the N. We propose messenger protein localization and movements are highly regulated and governed by Coulomb interactions between: 1. A recently discovered, radially directed E-field from the NM into the CM and 2. Net protein charge determined by its isoelectric point, phosphorylation state, and the cytosolic pH. These interactions, which are widely applied in elecrophoresis, provide a previously unknown mechanism for localization of messenger proteins within the cytoplasm as well as rapid shuttling between the CM and N. Here we show these dynamics optimize the speed, accuracy and efficiency of transduction pathways even allowing measurement of the location and timing of ligand binding at the CM –previously unknown components of intracellular information flow that are, nevertheless, likely necessary for detecting spatial gradients and temporal fluctuations in ligand concentrations within the environment. The model has been applied to the RAF-MEK-ERK pathway and scaffolding protein KSR1 using computer simulations and in-vitro experiments. The computer simulations predicted distinct distributions of phosphorylated and unphosphorylated components of this transduction pathway which were experimentally confirmed in normal breast epithelial cells (HMEC)

Soft-bound synaptic plasticity increases storage capacity

Accurate models of synaptic plasticity are essential to understand the adaptive properties of the nervous system and for realistic models of learning and memory. Experiments have shown that synaptic plasticity depends not only on pre- and post-synaptic activity patterns, but also on the strength of the connection itself. Namely, weaker synapses are more easily strengthened than already strong ones. This so called soft-bound plasticity automatically constrains the synaptic strengths. It is known that this has important consequences for the dynamics of plasticity and the synaptic weight distribution, but its impact on information storage is unknown. In this modeling study we introduce an information theoretic framework to analyse memory storage in an online learning setting. We show that soft-bound plasticity increases a variety of performance criteria by about 18% over hard-bound plasticity, and likely maximizes the storage capacity of synapses