Alan Krueger

First name
Alan
Last name
Krueger
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 January 1994)
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 December 1998)
Working Papers
Abstract

This paper reports the results of surveys of specialists in labor economics and public
economics at 40 leading research universities in the United States. Respondents provided
opinions of policy proposals; quantitative best estimates and 95% confidence intervals for
economic parameters; answers to values questions regarding income redistribution, efficiency
versus equity, and individual versus social responsibility; and their political party identification.
We find considerable disagreement among economists about policy proposals. Their
positions on policy are more closely related to their values than to their estimates of relevant
economic parameters or to their political party identification. Average best estimates of the
economic parameters agree well with the ranges summarized in surveys of relevant literature, but
the individual best estimates are usually widely dispersed. Moreover, economists, like experts in
many fields, appear more confident of their estimates than the substantial cross-respondent
variation in estimates would warrant. Finally, although the confidence intervals in general appear
to be too narrow, respondents whose best estimates are farther from the median tend to give
wider confidence intervals for those estimates.

Year of Publication
1997
Number
389
Date Published
08/1997
Publication Language
eng
Citation Key
Journal of Economic Literature, Vol. 35 (September 1998), pp. 1387-1425
Poterba, J., Fuchs, V., & Krueger, A. (1997). Why Do Economists Disagree About Policy? The Roles of Beliefs About Parameters and Values. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01db78tc029 (Original work published August 1997)
Working Papers
Abstract

This paper uses job applications data to test the existence of non-competitive, ex—ante rents in the labor market. We first examine whether
jobs that pay the legal minimum wage face an excessive supply of labor as
measured by the number of job applications received for the most recent
position filled by the firm. The results indicate that openings for jobs
that pay the minimum wage attract significantly more job applications than
jobs that pay either more or less than the minimnum wage. This spike in the
job application rate distribution indicates that ex-ante rents generated for
enp1oyees by an above market-level minimum wage do not appear to be
completely dissipated by employer actions.
The second part of the paper uses a similar approach to examine whether jobs in high-wage industries pay above market-clearing wage rates. We find a
weak, positive relationship between inter-industry application differentials
and inter-industry wage differentials. In addition, our results indicate
that employer size has a sizeable positive effect on the job application rate
even after controlling for the wage rate. The paper considers several
possible explanations for these findings.

Year of Publication
1988
Number
230
Date Published
04/1988
Publication Language
eng
Citation Key
Quarterly Journal of Economics, Vol 106, August 1991
Holzer, H., Krueger, A., & Katz, L. (1988). Job Queues and Wages: New Evidence on the Minimum Wage and Inter-Industry Wage Structure. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01vt150j262 (Original work published April 1988)
Working Papers
Author
Abstract

Data: Tables 3.8 & 3.9

Year of Publication
2007
Date Published
2012-09-26
Publication Language
eng
Citation Key
8797
Krueger, A. (2007). What Makes a Terrorist? Tables 3.8 & 3.9. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01pz50gw134
Data sets
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 competition for workers. Based on an analysis of 2016 Franchise Disclosure Documents, we 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. The implications of these no-poaching agreements for models of oligopsony are also discussed. No-poaching agreements are more common for franchises in low-wage and high-turnover industries.

Year of Publication
2017
Number
614a
Date Published
09/2017
Publication Language
eng
Citation Key
11471
Ashenfelter, O., & Krueger, A. (2017). Theory and Evidence on Employer Collusion in the Franchise Sector. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01z316q447v (Original work published September 2017)
Working Papers
Abstract

This paper tests a central implication of the theory of equalizing differences, that workers sort into
jobs with different attributes based on their preferences for those attributes. We present evidence
from four new time-use data sets for the United States and France on whether workers who are more
gregarious, as revealed by their behavior when they are not working, tend to be employed in jobs
that involve more social interactions. In each data set we find a significant and sizable relationship
between the tendency to interact with others off the job and while working. People’s descriptions of
their jobs and their personalities also accord reasonably well with their time use on and off the job.
Furthermore, workers in occupations that require social interactions according to the O’Net
Dictionary of Occupational Titles tend to spend more of their non-working time with friends.
Lastly, we find that workers report substantially higher levels of job satisfaction and net affect while
at work if their jobs entail frequent interactions with coworkers and other desirable working
conditions.

Year of Publication
2007
Number
517
Date Published
02/2007
Publication Language
eng
Citation Key
7873
Krueger, A., & Schkade, D. (2007). Sorting in the Labor Market: Do Gregarious Workers Flock to Interactive Jobs?. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01v405s937g (Original work published February 2007)
Working Papers
Abstract

This paper compares self-reported changes in families’ financial status to actual changes based on annual
time-series data calculated from the PSID. The results indicate that the Consumer Price Index does a
reasonably accurate job reconciling self-reported changes in financial status with measured changes in real
income. Earlier work by Nordhaus (I998) reached a different conclusion because it did not account for
changes in the shape of the income distribution.

Year of Publication
1997
Number
392
Date Published
12/1997
Publication Language
eng
Citation Key
Monthly Labor Review, vol. 121, no. 4, April 1998
Siskind, A., & Krueger, A. (1997). Assessing Bias in the Consumer Price Index from Survey Data. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01m613mx57z (Original work published December 1997)
Working Papers
Author
Abstract

This paper uses longitudinal CPS data on a large sample of workers to
estimate the determinants of participation in state workers’ compensation
programs in the United States. The principal finding is that higher workers’
compensation benefits are associated with greater participation in the
workers’ compensation program, after allowing for worker characteristics,
state dummy variables and other aspects of the workers’ compensation law.
Moreover, this result holds for both manufacturing and nonmanufacturing
workers. Workers’ compensation benefits, however, have an insignificant
effect on program participation for the sample of women. Overall, a 10%
increase in benefits is associated with a 7.1% increase in program
participation. In addition, the results show that the waiting period that is
required before benefit payments begin has a substantial negative effect on
participation in the workers’ compensation program. Finally, with the
exception of unemployment insurance, there is little evidence that workers are
comparatively more likely to participate in other social insurance programs
while they are collecting workers’ compensation benefits.

Year of Publication
1988
Number
239
Date Published
09/1988
Publication Language
eng
Citation Key
8192
Krueger, A. (1988). Moral Hazard in Workers’ Compensation. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01mw22v546k (Original work published September 1988)
Working Papers