Workers' Trust Funds and the Logic of Wage Profiles

This paper defines a concept, a worker's trust fund, which is useful in analyzing optimal age-earnings profiles. The trust fund represents what a worker loses if dismissed from a job for shirking. In considering whether to work or shirk, a worker weighs the potential loss due to forfeiture of the trust fund if caught shirking against the benefits from reduced effort. This concept is used to show that the implicit bonding in upward sloping age-earnings profiles is not a perfect substitute for an explicit upfront performance bond (or employment fee). It is also shown that the second-best optimal earnings profile in the absence of an upfront employment fee pays total compensation in excess of market clearing in a variety of stylized cases.

Do Deferred Wages Dominate Involuntary Unemployment as a Worker Discipline Device?

In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of market clearing to give workers an incentive not to shirk. Such payments in excess of market clearing and the resultant equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important theoretical criticism of such models: the so-called bonding argument. The essence of the bonding critique is that contracts whereby workers pay a bond to the firm upon taking a job (or pay an employment fee to gain employment) can eliminate involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues that implicit bonding through upward sloping wage profiles and other deferred payment schemes can perfectly substitute for upfront bonds in providing incentives not to shirk and thereby allow the labor market to clear. This paper shows that upward sloping wage profiles do not act as a perfect substitute for explicit bonds in a natural extension of the shirking model in which workers are finite lived, the monitoring of worker behaviors on the job is costly, and firms have reputations for honesty as employers. In the absence of direct upfront bonding, optimal payment schedules will be in excess of market clearing. The reason why upward sloping wage profiles that are market clearing will not generally be the optimal labor contract is simple: delayed payment may provide sufficient incentive to prevent shirking late in the life of the contract, but in the beginning of the contract it does not prevent shirking. And it turns out in a variety of stylized cases, it is cheaper for the firm to pay a wage premium rather than to accept worker shirking early in the contract. The implications of potential worker malfeasance in the absence of explicit bonds for compensation schedules, job assignments, and firm monitoring strategies over the course of a worker's career are also analyzed.

The Evolution of the Mexican-Born Workforce in the United States

This paper examines the evolution of the Mexican-born workforce in the United States using data drawn from the decennial U.S. Census throughout the entire 20th century. It is well known that there has been a rapid rise in Mexican immigration to the United States in recent years. Interestingly, the share of Mexican immigrants in the U.S. workforce declined steadily beginning in the 1920s before beginning to rise in the 1960s. It was not until 1980 that the relative number of Mexican immigrants in the U.S. workforce was at the 1920 level. The paper examines the trends in the relative skills and economic performance of Mexican immigrants, and contrasts this evolution with that experienced by other immigrants arriving in the United States during the period. The paper also examines the costs and benefits of this influx by examining how the Mexican influx has altered economic opportunities in the most affected labor markets and by discussing how the relative prices of goods and services produced by Mexican immigrants may have changed over time.

GEOTAIL Spacecraft historical data report

The purpose of this GEOTAIL Historical Report is to document ground processing operations information gathered on the GEOTAIL mission during processing activities at the Cape Canaveral Air Force Station (CCAFS). It is hoped that this report may aid management analysis, improve integration processing and forecasting of processing trends, and reduce real-time schedule changes. The GEOTAIL payload is the third Delta 2 Expendable Launch Vehicle (ELV) mission to document historical data. Comparisons of planned versus as-run schedule information are displayed. Information will generally fall into the following categories: (1) payload stay times (payload processing facility/hazardous processing facility/launch complex-17A); (2) payload processing times (planned, actual); (3) schedule delays; (4) integrated test times (experiments/launch vehicle); (5) unique customer support requirements; (6) modifications performed at facilities; (7) other appropriate information (Appendices A & B); and (8) lessons learned (reference Appendix C)

How Much Do Immigration and Trade Affect Labor Market Outcomes?

macroeconomics, trade, labor markets, immigration

AUTOPLAN: A PC-based automated mission planning tool

A PC-based automated mission and resource planning tool, AUTOPLAN, is described, with application to small-scale planning and scheduling systems in the Space Station program. The input is a proposed mission profile, including mission duration, number of allowable slip periods, and requirement profiles for one or more resources as a function of time. A corresponding availability profile is also entered for each resource over the whole time interval under study. AUTOPLAN determines all integrated schedules which do not require more than the available resources

Large space structures and systems in the space station era: A bibliography with indexes

Bibliographies and abstracts are listed for 1219 reports, articles, and other documents introduced into the NASA scientific and technical information system between July 1, 1990 and December 31, 1990. The purpose is to provide helpful information to the researcher, manager, and designer in technology development and mission design according to system, interactive analysis and design, structural and thermal analysis and design, structural concepts and control systems, electronics, advanced materials, assembly concepts, propulsion, and solar power satellite systems