Wages, Productivity, and the Dynamic Interaction of Businesses and Workers

This paper exploits a new matched universal and longitudinal employer-employee database at the US Census Bureau to empirically investigate the link between firms' choice of worker mix and the implied relationships between productivity and wages. We particularly focus on the decision making process of new firms and examine the role of both learning and selection. Our key empirical results are: (i) We find substantial and persistent differences in earnings per worker, output per worker, and worker mix across businesses within narrowly defined industries, which remain even after controlling for other observable characteristics. (ii) We find that new businesses exhibit even greater heterogeneity in earnings and productivity than do mature businesses, but that they adjust to the mature business pattern as they age. The adjustment process, while different for earnings and productivity, is consistent both with firms learning as they age and with the exit of mistake' prone firms. (iii) The dynamics of the reduction in productivity heterogeneity of new firms as they age is both complex and very different from the dynamic reduction of earnings heterogeneity.

Establishment Wage Differentials

Economists have long known that individual wages depend on a combination of employee and employer characteristics, as well as the interaction of the two. Although it is important to understand how employee and employer characteristics are related to wages, little is known about the magnitude and relation of these wage effects. This is primarily due to the lack of microdata which links individuals to the establishments where they work, but also due to technical difficulties associated with separating out employee and employer effects. This paper uses data from the Occupational Employment Statistics program at the Bureau of Labor Statistics that permit both of these issues to be addressed. Our results show that employer effects contribute substantially to earnings differences across individuals. We also find that establishments that pay well for one occupation also pay well for others. This paper contributes to the growing literature that analyzes firms’ compensation policies, and specifically the topic of employer effects on wages.Establishment Wage Differentials; Occupational Employment Statistics

Sensor Planning and Control in a Dynamic Environment

This paper presents an approach to the problem of controlling the configuration of a team of mobile agents equipped with cameras so as to optimize the quality of the estimates derived from their measurements. The issue of optimizing the robots\u27 configuration is particularly important in the context of teams equipped with vision sensors since most estimation schemes of interest will involve some form of triangulation. We provide a theoretical framework for tackling the sensor planning problem and a practical computational strategy, inspired by work on particle filtering, for implementing the approach. We extend our previous work by showing how modeled system dynamics and configuration space obstacles can be handled. These ideas have been demonstrated both in simulation and on actual robotic platforms. The results indicate that the framework is able to solve fairly difficult sensor planning problems online without requiring excessive amounts of computational resources

Assessing the Impact of Using Very Low GWP Alternatives to R-404A

Global pressures on hydrofluorocarbon (HFC) refrigerants have reached new levels. With ongoing country ratifications of the Kigali Amendment to the Montreal Protocol and refrigerant shortages across Europe driven by the F-Gas regulations, equipment manufacturers are working hard to implement lower global warming potential (GWP) solutions. R-404A is one of the higher GWP refrigerants (GWP100 Year = 3,922, per AR4) used widely in commercial refrigeration. Several very low GWP (LGWP) candidates have emerged as potential replacements. For many hermetic and split system applications, hydrofluoroolefin-based (HFO) blends represent lower flammability alternatives to hydrocarbon (HC) refrigerants, that also allow for significantly larger charge sizes. Two mildly flammable, very LGWP blends, XL40 (R-454A) and XL20 (R-454C) were tested and compared to the R-404A baseline performance of a commercially available, double-door, upright reach-in freezer via soft-optimization testing. Refrigerant compatibility with lubricants and other system materials was also examined. Miscibility, water solubility, and dielectric properties were also characterized

Business Employment Dynamics: Tabulations by Employer Size

The gross job gains and gross job loss statistics from the BLS Business Employment Dynamics (BED) program measure the large gross job flows that underlie the quarterly net change in employment. In the fourth quarter of 2004, employment grew by 869,000 jobs. This growth is the sum of 8.1 million gross job gains from opening and expanding establishments, and 7.2 million gross job losses from contracting and closing establishments. The new BED data have captured the attention of economists and policymakers across the country, and these data are becoming a major contributor to our understanding of employment growth and business cycles in the U.S. economy. Following the initial release of the BED data in September 2003, the BED data series expanded in May 2004 with the release of industry statistics. The BLS then began work on tabulations by size class. The production of size-class statistics is a complex task involving several economic and statistical issues. Although it is trivial to classify a business into a size class in any given quarter, it is difficult to classify a business into a size class for a longitudinal analysis of employment growth. Several different classifications exist, and many of these possible classifications have appealing theoretical and statistical properties. Furthermore, these alternative classification methodologies result in sharply different portraits of employment growth by size class. In this article, we discuss the alternative statistical methodologies that the BLS considered for creating size class tabulations from the Business Employment Dynamics data. Our primary focus is on four methodologies: quarterly base-sizing, annual base-sizing, mean-sizing, and dynamic-sizing. We discuss the evaluation criteria that BLS considered for choosing its official size class methodology.gross job gains; gross job losses; business employment dynamics; size-class statistics; dynamic-sizing