Wage Dispersion in a Partially Unionized Labor Force

Wage Dispersion in a Partially Unionized Labor Force This paper critiques Card’s (2001) method for analyzing wage dispersion in a partially unionized labor market based on a disaggregation of the population into skill categories. We argue that disaggregation is a good idea, the use of skill categories less so. We offer a modified model in which each worker is assigned a union-membership probability, a predicted union wage, and a predicted nonunion wage. Our model provides a natural three-way decomposition of variance, and is also suited to counterfactual analysis. By way of an application, we examine the effect of de-unionization on wage dispersion in the United Kingdom between 1983 and 1995, reporting that the decline in membership accounts for only about one-fifth of the observed increase in wage dispersion.wage dispersion, three-way variance decomposition, bivariate kernel density smoothing, union membership, deunionization.

Wage Dispersion in a Partially Unionized Labor Force

Taking as our point of departure a model proposed by David Card (2001), we suggest new methods for analyzing wage dispersion in a partially unionized labor market. Card's method disaggregates the labor population into skill categories, which procedure entails some loss of information. Accordingly, we develop a model in which each worker individually is assigned a union-membership probability and predicted union and nonunion wages. The model yields a natural three-way decomposition of variance. The decomposition permits counterfactual analysis, using concepts and techniques from the theory of factorial experimental design. We examine causes of the increase in U.K. wage dispersion between 1983 and 1995. Of the factors initially considered, the most influential was a change in the structure of remuneration inside both the union and nonunion sectors. Next in importance was the decrease in union membership. Finally, exogenous changes in labor force characteristics had, for most groups considered, only a small negative effect. We supplement this preliminary three-factorial analysis with a five-factorial analysis that allows us to examine effects from the wage-equation parameters in greater detail.wage dispersion, three-way variance decomposition, bivariate kernel density smoothing, union membership, deunionization, factorial experimental design

Building Blocks in the Economics of Mandates

The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers' insurance, and may also redistribute in favour of more "deserving" workers. The risk is that it may also reduce output. The more diverse are free market contracts – separating the various worker types – the more likely it is that such output effects will on balance serve to reduce welfare. It is shown that adverse effects can be reduced by restricting mandates to larger firms. An alternative to a mandate is direct government provision. We demonstrate that direct government provision has the advantage over mandates of preserving separations.asymmetric information, labour mandates, compensation packages

Mandated Benefits, Welfare, and Heterogeneous Firms

The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers' insurance, and may also redistribute in favor of more "deserving" workers. The risk is that it may also reduce output. The more diverse are free market contracts - separating the various worker types - the more likely it is that such output effects will on balance serve to reduce welfare. It is shown that adverse effects can be mitigated by restricting mandates to "large" firms. An alternative to a mandate is direct government provision. We demonstrate that direct government provision may be superior to mandates by virtue of preserving separations

Wage dispersion in a partially unionized labor force

Taking as our point of departure a model proposed by David Card (2001), we suggest new methods for analyzing wage dispersion in a partially unionized labor market. Card's method disaggregates the labor population into skill categories, which procedure entails some loss of information. Accordingly, we develop a model in which each worker individually is assigned a union-membership probability and predicted union and nonunion wages. The model yields a natural three-way decomposition of variance. The decomposition permits counterfactual analysis, using concepts and techniques from the theory of factorial experimental design. We examine causes of the increase in U.K. wage dispersion between 1983 and 1995. Of the factors initially considered, the most influential was a change in the structure of remuneration inside both the union and nonunion sectors. Next in importance was the decrease in union membership. Finally, exogenous changes in labor force characteristics had, for most groups considered, only a small negative effect. We supplement this preliminary three-factorial analysis with a five-factorial analysis that allows us to examine effects from the wage-equation parameters in greater detail

Worker participation and firm performance : evidence from Germany and Britain

This paper examines the Freeman-Lazear works council/worker involvement model against the empirical backdrop of two different industrial relations systems: the British voluntaristic system, and the German system of mandatory works councils. We find that in nonunion British firms worker involvement increases economic performance, but in the union firms there are negative effects. The implication is that local distributive conflict can cause the wrong level of worker involvement to be chosen, as predicted by the model. ln Germany, where centralized collective bargaining reduces local distributive conflict, we find that a mandate can be advantageous, again as predicted by the model. However, the straitjacket of a mandate is shown to disadvantage small German firms

ASCA observations of high redshift quasars

ASCA observations of 4 high redshift radio--loud quasars with 1.44<z<3.21 are presented. The spectral analysis for three of them (PKS 0332-403, PKS 0537-286, PKS 2149-306) reveals that their X-ray continuum emission is well represented by a simple power--law model plus absorption with photon indices of \Gamma =1.92^{+0.30}_{-0.20} (PKS 0332-403), \Gamma =1.63^{+0.14}_{-0.12} (PKS 0537-286) and \Gamma =1.57\pm 0.05 (PKS 2149-306). The fourth and most distant object, PKS 1614+051 at z=3.21, was detected, but a detailed spectral analysis is impossible due to the small number of photons. We find evidence for excess absorption above the Galactic N_H--value in the ASCA data of PKS 2149-306, which is not confirmed by the ROSAT All-Sky Survey PSPC spectrum of this source. This could probably be due to variable absorption. The ROSAT spectrum of PKS 0537-286, deduced from a 10 ksec pointed PSPC observation, is consistent with the ASCA results. Thermal bremsstrahlung models also give acceptable fits to the ASCA data with best fit (rest frame) temperatures of 10.4, 33.5 and 45.8 keV for PKS 0332-403, PKS 0537-286 and PKS 2149-306, respectively. More complicated models for the X-ray continuum are not required, in particular, tight upper limits on the strength of the Fe-K emission line are given. The broad band spectral energy distributions from the radio to the \gamma-rays are presented and discussed

In search of virus carriers of the 1988 and 2002 phocine distemper virus outbreaks in European harbour seals

European harbour seal (Phoca vitulina) populations decreased substantially during the phocine distemper virus (PDV) outbreaks of 1988 and 2002. Different hypotheses have stated that various seals and terrestrial carnivore species might be the source of infection. To further analyse these hypotheses, grey (Halichoerus grypus) and ringed (Phoca hispida) seals, polar bears (Ursus maritimus) and minks (Mustela lutreola) were sampled from the North Sea and East Greenland coasts between 1988 and 2004 and investigated by RT-PCR using a panmorbillivirus primer pair. However, all samples were negative for morbillivirus nucleic acid

The asymmetric drift, the local standard of rest, and implications from RAVE data

Context. The determination of the local standard of rest (LSR), which corresponds to the measurement of the peculiar motion of the Sun based on the derivation of the asymmetric drift of stellar populations, is still a matter of debate. The classical value of the tangential peculiar motion of the Sun with respect to the LSR was challenged in recent years, claiming a significantly larger value. Aims. We present an improved Jeans analysis, which allows a better interpretation of the measured kinematics of stellar populations in the Milky Way disc. We show that the Radial Velocity Experiment (RAVE) sample of dwarf stars is an excellent data set to derive tighter boundary conditions to chemodynamical evolution models of the extended solar neighbourhood. Methods. We propose an improved version of the Stromberg relation with the radial scalelengths as the only unknown. We redetermine the asymmetric drift and the LSR for dwarf stars based on RAVE data. Additionally, we discuss the impact of adopting a different LSR value on the individual scalelengths of the subpopulations. Results. Binning RAVE stars in metallicity reveals a bigger asymmetric drift (corresponding to a smaller radial scalelength) for more metal-rich populations. With the standard assumption of velocity-dispersion independent radial scalelengths in each metallicity bin, we redetermine the LSR. The new Stromberg equation yields a joint LSR value of V-circle dot = 3.06 +/- 0.68 km s(-1), which is even smaller than the classical value based on Hipparcos data. The corresponding radial scalelength increases from 1.6 kpc for the metal-rich bin to 2.9 kpc for the metal-poor bin, with a trend of an even larger scalelength for young metal-poor stars. When adopting the recent Schonrich value of V-circle dot = 12.24 km s(-1) for the LSR, the new Stromberg equation yields much larger individual radial scalelengths of the RAVE subpopulations, which seem unphysical in part. Conclusions. The new Stromberg equation allows a cleaner interpretation of the kinematic data of disc stars in terms of radial scalelengths. Lifting the LSR value by a few km s(-1) compared to the classical value results in strongly increased radial scalelengths with a trend of smaller values for larger velocity dispersions