wages

Author
Abstract

Is there a systematic relation between wage rates and strike out-
cones? This paper addresses the question using a panel of over 2,000
collective bargaining agreements from the Canadian manufacturing sector.
Contrary to the implications of recent signalling and sequential
bargaining models, there is no correlation between contract real wage
rates and strike duration or incidence. Furthermore, lagged strike out-
comes do not affect future wage settlements. On the other hand, there
is some evidence that contract wages affect future strike outcomes, and
also that lagged strike outcomes affect future strike probabilities.

Year of Publication
1987
Number
221
Date Published
05/1987
Publication Language
eng
Citation Key
7948
Card, D. (1987). An Empirical Study of Strikes and Wages. Retrieved from http://arks.princeton.edu/ark:/88435/dsp015425k9691 (Original work published 05/1987AD)
Working Papers
Abstract

In 1988, the wage distribution in East Germany was much more
compressed than in West Germany or the U.S. Since the
collapse of Communism and unification with West Germany,
however, the wage structure in eastern Germany has changed
considerably. In particular, wage variation has increased,
the payoff to education has decreased somewhat, industry
differentials have expanded, and the white collar premium has
increased. Although average wage growth has been remarkably
high in eastern Germany, individual variation in wage growth
is similar to typical western levels. The wage structure of
former East Germans who work in western Germany resembles the
wage structure of native West Germans in some respects, but
their experience-earnings profile is flat.

Year of Publication
1992
Number
307
Date Published
08/1992
Publication Language
eng
Citation Key
In Richard B. Freeman and Lawrence F. Katz (eds.) Differences and Changes in Wage Structures (Chicago:University of Chicago Press, 1995)
Pischke, J. -S., & Krueger, A. (1992). A Comparative Analysis of East and West German Labor Markets: Before and After Unification. Retrieved from http://arks.princeton.edu/ark:/88435/dsp017p88cg546 (Original work published 08/1992AD)
Working Papers
Abstract

In this paper we provide theoretical and empirical analyses of an
asymmetric-information model of layoffs in which the current employer is
better informed about its workers’ abilities than prospective employers
are. The key feature of the model is that when firms have discretion with
respect to whom to lay off, the market infers that laid-off workers are of
low ability. Since no such negative inference should be attached to
workers displaced in a plant closing, our model predicts that the post-
displacement wages of otherwise observationally equivalent workers will be
higher for those displaced by plant closings than for those displaced by
layoffs. A simple extension of our model predicts that the post-
displacement unemployment duration of otherwise observationally equivalent
workers will be lower for those displaced by plant closings than for those
displaced by layoffs.
In our empirical work, we use data from the Displaced Workers Supplements
in the January l984 and 1986 Current Population Surveys. For our whole
sample, we find that the evidence (with respect to both re-employment wages
and post-displacement unemployment duration) is consistent with the idea
that laid-off workers are viewed less favorably by the market than are
those losing jobs in plant closings. Furthermore, our findings are much
stronger for workers laid-off from jobs where employers have discretion
over whom to lay off, and much weaker for workers laid-off from jobs where
employers have little or no discretion over whom to lay off.

Year of Publication
1989
Number
249
Date Published
04/1989
Publication Language
eng
Citation Key
Journal of Labor Economics, Vol. 9, No. 4, October 1991.
Gibbons, R., & Katz, L. (1989). Layoffs and Lemons. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01bg257f06q (Original work published 04/1989AD)
Working Papers
Author
Abstract

This paper examines the relationship between price growth and
skill intensity across 150 manufacturing industries between 1989
and 1995. There are two main findings. First, wage growth and
intermediate goods price increases are passed through to final
product prices roughly in proportion to their factor shares.
Second, product prices have grown relatively less in sectors that
more intensively utilize less-skilled labor. The latter finding
is consistent with the Stolper-Samuelson theory of expanded trade
with countries that are abundant in less-skilled workers, as well
as with some models of technological change.

Year of Publication
1997
Number
375
Date Published
01/1997
Publication Language
eng
Citation Key
8024
Krueger, A. (1997). Labor Market Shifts and the Price Puzzle Revisited. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01bc386j21k (Original work published 01/1997AD)
Working Papers
Author
Abstract

This paper re-examines the connection between unions and wage
inequality, focussing on three questions: (1) How does the union wage
effect vary across the wage distribution? (2) What is the effect of
unionism on the overall variance of wages at the end of the 1980s?
(3) How much of the increase in the variance of wages over the 1970s
and 1980s can be attributed to changes in the level and distribution
of union coverage?
Cross-sectional union wage gap estimates vary over the wage
distribution, ranging from over 30 percent for lower wage workers to
-10 percent for higher wage workers. Using a longitudinal estimation
technique that accounts for misclassification errors in union status,
I find that this variation represents a combination of a truly larger
wage effect for lower-paid workers, and differential selection
biases.
The estimated effect of unions on the variance of wages in the
late 1980s is relatively modest. Nevertheless, changes in the level
and pattern of unionism -- particularly the decline of unions among
lower wage workers -- have been an important component of the growth
in wage inequality. Changes in unionization account for one-fifth of
the increase of the variance of adult male wages between 1973 and
1987.

Year of Publication
1991
Number
287
Date Published
07/1991
Publication Language
eng
Citation Key
8079
Card, D. (1991). The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?. Retrieved from http://arks.princeton.edu/ark:/88435/dsp0179407x173 (Original work published 07/1991AD)
Working Papers
Author
Abstract

This paper examines whether employees who use a computer at work earn
a higher wage rate than otherwise similar workers who do not use a computer
at work. The analysis primarily relies on data from the Current Population
Survey and the High School and Beyond Survey. A variety of statistical
models are estimated to try to correct for unobserved variables that might
be correlated with both job-related computer use and earnings. The
estimates suggest that workers who use computers on their job earn roughly
a 10 to 15 percent higher wage rate. In addition, the estimates suggest
that the expansion in computer use in the 1980s can account for between
one-third and one-half of the observed increase in the rate of return to
education. Finally, occupations that experienced greater growth in
computer use between 1984 and 1989 also experienced above average wage
growth.

Year of Publication
1991
Number
291
Date Published
08/1991
Publication Language
eng
Citation Key
Quarterly Journal of Economics, Vol 108, No. 1, February 1993
Krueger, A. (1991). How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-89. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01sn009x773 (Original work published 08/1991AD)
Working Papers
Abstract

Unlike existing models which rely heavily on assumptions regarding unions’
distributional preferences, we present a very simple model in which union
seniority-layoff rules and rising seniority-wage profiles result from
optimal price discrimination against the firm. Surprisingly, even when
cash transfers among union members are ruled out, unions’ optimal
seniority-wage profiles are likely to be completely unaffected by their
distributional preferences because of a kink in the utility-possibility
frontier. This suggests that the simple technology of price discrimination
may play a key role, hitherto unappreciated, in explaining union policies
that affect the relative wellbeing of different union members.

Year of Publication
1988
Number
235
Date Published
07/1988
Publication Language
eng
Citation Key
Quarterly Journal of Economics, Vol. 104, No. 3, August 1989
Robert, J., & Kuhn, P. (1988). Seniority and Distribution in a Two-Worker Trade Union. Retrieved from http://arks.princeton.edu/ark:/88435/dsp013r074t956 (Original work published 07/1988AD)
Working Papers
Abstract

Since recent immigrants tend to earn less than natives, their relative labor market
status has been adversely impacted by an increase in the return to labor market skills
and widening wage inequality over the past two decades. To evaluate the magnitude
of this effect, this study uses Social Security earnings records matched to recent cross
sections of the SIPP and CPS to estimate the change in the return to skills among
native born workers. This is then used to adjust the earnings gap between immigrants
and natives in order to estimate what the gap would have been if the return to skills
had remained at its 1980 level. The results suggest that the return to skills rose by 40
percent between 1980 and 1997, leading to a 10 to 15 percentage point decrease in the
relative earnings of recent immigrants. Thus examining solely the earnings of recent
immigrants may lead to an overly pessimistic picture of their actual labor market skills.

Year of Publication
2001
Number
458
Date Published
09/2001
Publication Language
eng
Citation Key
8239
Lubotsky, D. (2001). The Effect of Changes in the U.S. Wage Structure on Recent Immigrants' Earnings. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01js956f82d (Original work published 09/2001AD)
Working Papers
Author
Abstract

This paper investigates cyclicality in real wages between 1969 and 1982,
using 14 years of data from the Panel Survey of Income Dynamics. First, it
investigates the extent to which movements in and out of the labor market
created apparent wage cyclicality. Second, it investigates whether cyclical
movements of workers between heterogeneous wage sectors within the labor market
created cyclicality. Little evidence of the first effect is found. The second
effect is much more important, and cyclicality clearly occurs in the movement
of workers between different labor market sectors. However, sector selection
is not correlated with wage determination. Thus, individual wage change
estimates of cyclicality need to control for sector location, but need not
account for sector selection. The third conclusion of the paper is that
cyclicality is present in real wages even within sectors over this time period,
and is the result of both cyclicality in overall wage levels (cyclicality in
the constant term in wage equations), as well as in the coefficients associated
with particular worker characteristics.

Year of Publication
1987
Number
224
Date Published
08/1987
Publication Language
eng
Citation Key
Journal of Labor Economics, Vol. 8, No. 1, Part 1, January 1990
Blank, R. (1987). Why Are Wages Cyclical in the 1970's?. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01jq085j98g (Original work published 08/1987AD)
Working Papers