Alan Krueger

First name
Alan
Last name
Krueger
Abstract

This paper presents estimates of the average cost of the workers’
compensation insurance program for a homogeneous group of employers by state.
These estimates are of interest because they reflect the operation, direct
costs, and efficiency of workers’ compensation. The paper estimates cost
equations for a variety of alternative specifications. The main finding is
that costs tend to rise equal proportionally with benefits -- doubling
benefits will double insurance costs. The results also indicate that state
provision of workers’ compensation insurance is associated with higher average
costs to employers, all else equal. Finally, we explore the impact that the
minimum standards recommended by the National Commission on State Workmen's
Compensation Laws would have on workers’ compensation costs.

Year of Publication
1988
Number
238
Date Published
08/1988
Publication Language
eng
Citation Key
The Review of Economics and Statistics, Vol 72, no 2, May 1990
Krueger, A., & Burton, J. (1988). The Employers' Costs of Workers' Compensation Insurance: Magnitudes and Determinants. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01d217qp490 (Original work published 08/1988AD)
Working Papers
Abstract

The most widely used measure of employer health care costs, the health insurance component of
the Employment Cost Index, indicates that cost growth has been decelerating since 1989. In
recent years the level of health care costs has even declined in nominal dollars. This paper
analyzes the components of changes in employers’ health care expenditures over the 1992-94 and
1987-93 periods. We find that employer costs have decreased primarily as a result of a decline in
the fraction of workers with coverage and a large decrease in the rate of growth of insurance
premiums. We conclude that the shift to managed care does not appear to be directly responsible
for significant cost savings because managed care premiums are almost as high as those for fee-
for-service plans, on average. Finally, we note that there is a significant need for improved data
collection in this area.

Year of Publication
1996
Number
370
Date Published
11/1996
Publication Language
eng
Citation Key
89th Annual Conference on Taxation of the National Tax Association, 1996.
Levy, H., & Krueger, A. (1996). Accounting for the Slowdown in Employer Health Care Costs. Retrieved from http://arks.princeton.edu/ark:/88435/dsp019w032301s (Original work published 11/1996AD)
Working Papers
Abstract

On April 1, 1992 New Jersey's minimum wage rose from $4.25 to $5.05 per hour. To evaluate the impact of the new law we surveyed over 400 fast food restaurants in New Jersey and Pennsylvania before and after the rise in the minimum. Comparisons of the changes in wages, employment, and prices at stores in New Jersey relative to stores in Pennsylvania (where the minimum remained constant at $4.25 per hour) provide simple robust estimates of the effect of the increased minimum wage. Our empirical findings challenge the conventional notion that a rise in the minimum causes employment to decline. Relative to stores in Pennsylvania, fast food restaurants in New Jersey increased employment by 2.5 employees per store. We also compare employment changes at stores in New Jersey that were initially paying $5.00 per hour or more (and were therefore largely unaffected by the new law) to the employment changes at lower-wage stores, where the new law raised wages by 10-15 percent. Stores that were unaffected by the minimum wage had the same employment growth as stores in Pennsylvania, while stores that had to increase their wages increased their employment. Finally, we evaluate theoretical models that might explain these results.

Year of Publication
1993
Number
315
Date Published
03/1993
Publication Language
eng
Citation Key
American Economic Review, Vol. 84, No. 4, September, 1994
Krueger, A., & Card, D. (1993). Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania. Retrieved from http://arks.princeton.edu/ark:/88435/dsp017d278t020 (Original work published 03/1993AD)
Working Papers
Year of Publication
2004
Number
496
Date Published
09/2004
Publication Language
eng
Citation Key
Brookings Papers on Economic Activity , Vol. 2004, No. 1, 2004
Blinder, A., & Krueger, A. (2004). What Does the Public Know about Economic Policy, and How Does It Know It?. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01j3860693b (Original work published 09/2004AD)
Working Papers
Author
Abstract

As Bill Bradley recently observed, “A pair of strong hands are not what they used to be. Now
those hands have to be able to use a keyboard.” In 1997, over half of all workers directly used a
computer keyboard on the job. Workers who use a computer at work are paid more than those
who do not, and are more highly sought after by employers. The Commerce Department’s 1999
report, Falling Through the Net: Defining the Digital Divide, highlighted that African-American
workers are less likely than others to have access to information technology at home and at work.
The Commerce Department report did not address the issue of training African-American
students and workers to use computer technology. This paper seeks to fill that void by exploring
the magnitude of the racial divide in the use of computer technology among school children, and
considering the consequences of the digital divide. The key findings are summarized below.

Year of Publication
2000
Number
434
Date Published
03/2000
Publication Language
eng
Citation Key
Education and Training for the Black Worker in the 21st Century,
Krueger, A. (2000). The Digital Divide in Educating African-American Students and Workers. Retrieved from http://arks.princeton.edu/ark:/88435/dsp011j92g7476 (Original work published 03/2000AD)
Working Papers
Author
Keywords
Abstract

This paper reinvestigates the evidence on the impact of the minimum wage on
employment in Puerto Rico. The strongest evidence that the minimum wage had a negative
effect on employment comes from an aggregate time series analysis. The weakest evidence
comes from cross-industry analyses. The main finding of the paper, however, is that the
statistical evidence of a negative employment effect of the minimum wage in Puerto Rico is
surprisingly fragile.

Year of Publication
1994
Number
330
Date Published
05/1994
Publication Language
eng
Citation Key
In Solomon Polachek (ed.) Research in Labor Economics, Vol. 14, (Greenwich, CT:JAI Press, 1995)
Krueger, A. (1994). The Effect of the Minimum Wage When It Really Bites: A Reexamination of the Evidence from Puerto Rico. Retrieved from http://arks.princeton.edu/ark:/88435/dsp013t945q78d (Original work published 05/1994AD)
Working Papers
Abstract

In this paper we study the role of covenants in franchise contracts that restrict the recruitment and hiring of employees from other units within the same franchise chain in suppressing and hiring of employees from other units within the same franchise chain in suppressing find that “no-poaching of workers agreements” are included in a surprising 58 percent of major franchisors’ contracts, including McDonald’s, Burger King, Jiffy Lube and H&R Block. Theoretical models of oligopsony and dynamic monopsony, as well as incentives for investment in job training, are discussed in the context of these no-poaching agreements. Although the occurrence of no-poaching agreements is difficult to predict from franchise or industry characteristics, no-poaching agreements are more common for franchises in low-wage and high-turnover industries.

Year of Publication
2017
Number
614
Date Published
09/2017
Publication Language
eng
Citation Key
10281
Ashenfelter, O., & Krueger, A. (2017). Theory and Evidence on Employer Collusion in the Franchise Sector. Retrieved from http://arks.princeton.edu/ark:/88435/dsp014f16c547g (Original work published 09/2017AD)
Working Papers
Author
Abstract

This paper provides new evidence on time use and subjective well-being of employed and unemployed individuals in 14 countries. We devote particular attention to characterizing and modeling job search intensity, measured by the amount of time devoted to searching for a new job. Job search intensity varies considerably across countries, and is higher in countries that have higher wage dispersion. We also examine the relationship between unemployment benefits and job search.

Year of Publication
2008
Number
524
Date Published
05/2008
Publication Language
eng
Citation Key
7865
Krueger, A. (2008). The Lot of the Unemployed: A Time Use Perspective. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01w37636771 (Original work published 05/2008AD)
Working Papers
Author
Abstract

This paper provides several observations on the impact of employment-based
government mandates on job characteristics, wages, and employment. Special attention is
devoted to evaluating the effects of mandated health insurance because health care is the largest
government mandate potentially on the horizon. In some situations, mandates may be useful
to solve adverse selection problems, and to compel firms to internalize the social costs, of
production. Moreover, in a world with pre-existing distortions, mandates may reduce other inefficiencies. However, it is concluded that in many situations the optimal way for a
government to assure that services are provided is probably not through employment-based
mandates. In many situations, mandates are utilized because alternative schemes are politically
infeasible. Nevertheless, since the labor supply curve is widely believed to be fairly inelastic,
in the long run employers’ costs of meeting government mandates are likely to be shifted to
employees in the form of lower wages. Cost shifting to employees is expected to moderate
the reduction in jobs due to government mandates.

Year of Publication
1994
Number
323
Date Published
01/1994
Publication Language
eng
Citation Key
In Michael Bruno and Boris Pleskovic (eds.) Annual World Bank Conference on Development Economics, 1996 (Washington, DC:The World Bank, 1997)
Krueger, A. (1994). Observations on Employment-Based Government Mandates, With Particular Reference to Health Insurance. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01wm117n97b (Original work published 01/1994AD)
Working Papers
Keywords
Abstract

This paper tries to reconcile evidence on the effect of schooling on income and on GDP growth
from the microeconometric and empirical macro growth literatures. Much microeconometric
evidence suggests that education is an important causal determinant of income for individuals
within countries as diverse as Sweden and the United States. At a national level, however, recent
studies have found that increases in educational attainment are unrelated to economic growth.
This finding is shown to be a spurious result of the extremely high rate of measurement error in
first-differenced cross-country education data. Afier accounting for measurement error, the
effect of changes in educational attainment on income growth in cross-country data is at least as
great as microeconometric estimates of the rate of return to years of schooling. We also
investigate another finding of the macro growth literature -- that economic growth depends
positively on the initial stock of human capital. We find that the effect of the initial level of
education on growth is sensitive to the econometric assumptions that are imposed on the data
(e.g., constant-coefficient assumption), as well as to the other covariates included in the model.
Perhaps most importantly, we find that the initial level of education does not appear to have a
significant effect on economic growth among OECD countries. The conclusion comments on
policy implications for Sweden based on the human capital literature.

Year of Publication
1998
Number
411
Date Published
12/1998
Publication Language
eng
Citation Key
Swedish Economic Policy Review, vol. 6, no. 2, Autumn 1999.
Lindahl, M., & Krueger, A. (1998). Education for Growth in Sweden and the World. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01s7526c41b (Original work published 12/1998AD)
Working Papers