Wage Gaps Large and Small

The law of one wage does not strictly hold, nor should it be expected to hold, in contemporary labor markets. The law of one wage, however, provides a surprisingly good first approximation of the structure of U.S. wages. This generalization is drawn from research on a diverse set of topics: the Mincerian wage equation and earnings imputation, union wage differentials, product market regulation and the labor market, wages in male and female jobs, the wage effects of military service, and inter-area wages and cost of living. Working Paper 08-1

Lessons from the Laureates

This paper uses as source material twenty-three autobiographical essays by Nobel economists presented since 1984 at Trinity University (San Antonio, Texas) and published in Lives of the Laureates (MIT Press). A goal of the lecture series is to enhance understanding of the link between biography and the development of modern economic thought. We explore this link and identify common themes in the essays, relying heavily on the words of the laureates. Common themes include the importance of real-world events coupled with a desire for rigor and relevance, the critical influence of teachers, the necessity of scholarly interaction, and the role of luck or happenstance. Most of the laureates view their research program not as one planned in advance but one that evolved via the marketplace for ideas.autobiography, Nobel economists, economic thought

GDP & Beyond – die europäische Perspektive

Earnings nonresponse in the Current Population Survey is roughly 30% in the monthly surveys and 20% in the annual March survey. Even if nonresponse is random, severe bias attaches to wage equation coefficient estimates on attributes not matched in the earnings imputation hot deck. If nonresponse is ignorable, unbiased estimates can be achieved by omitting imputed earners, yet little is known about whether or not CPS nonresponse is ignorable. Using sample frame measures to identify selection, we find clear-cut evidence among men but limited evidence among women for negative selection into response. Wage equation slope coefficients are affected little by selection but because of intercept shifts, wages for men and to a lesser extent women are understated, as are gender wage gaps. Selection is less severe among household heads/co-heads than among other household members.response bias, imputation, earnings nonresponse, gender gap, CPS

Labor Unions and the Economic Performance of Firms

Hirsch develops a model of union rent-seeking in which the unions capture a share of quasi-rents that make up the normal ROI in long-lived capital and R&D. He finds that in response, firms adjust their investments in vulnerable tangible and intangible capital. Hirsch also attempts to explain the connection between the contraction of the size of unions which occurred in the 1970s and firms\u27 lower profitability, diminished market value, and lower investment levels.https://research.upjohn.org/up_press/1091/thumbnail.jp