wages

Keywords
Abstract

Periods of rapid U.S. economic growth during the 1960s and 1970s coincided with improved
living standards for many segments of the population, including the disadvantaged as well as the
affluent, suggesting to some that a rising economic tide lifts all demographic boats. This paper
investigates the impact of U.S. business cycle conditions on population well-being since the
1970s. Aggregate employment and hours worked in this period are strongly procyclical,
particularly for low-skilled workers, while aggregate real wages are only mildly procyclical.
Similar pattems appear in a balanced panel of PSID respondents that removes the effects of
changing workforce composition, though the magnitude of the responsiveness of real wages to
unemployment appears to have declined in the last 20 years. Economic upturns increase the
likelihood that workers acquire jobs in sectors with positively sloped career ladders. Spending
by state and local govemments in all categories rises during economic expansions, including
welfare spending, for which needs vary countercyclically. Since the disadvantaged are likely to
benefit disproportionately from such govemment spending, it follows that the public finances
also contribute to conveying the benefits of a strong economy to diverse population groups.

Year of Publication
2001
Number
454
Date Published
07/2001
Publication Language
eng
Citation Key
7883
Hoynes, H. ., Hines, J. ., & Krueger, A. . (2001). Another Look at Whether a Rising Tide Lifts All Boats. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01jm214p131 (Original work published July 2001)
Working Papers
Abstract

This paper presents evidence on the quality of schooling by race and ethnic
origin in the United States. Although substantial racial segregation
across schools exists, the average pupil-teacher ratio is approximately the
same for black and white students. Hispanic students, however, on average have
l0 percent more students per teacher. Relative to whites, blacks
and Hispanics are less likely to use computers at school and at work. The
implications of these differences in school quality for labor market
outcomes are examined. We conclude by examining reasons for the increase
in the black-white earnings gap since the mid-1970s.

Year of Publication
1992
Number
301
Date Published
03/1992
Publication Language
eng
Citation Key
Brookings Papers on Economic Activity: Microeconomics, in Martin N. Bailey and Clifford Winston (eds.) 1992, pp. 269-326.
Boozer, M. ., Wolkon, S. ., & Krueger, A. . (1992). Race and School Quality Since Brown vs. Board of Education. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01cz30ps65d (Original work published March 1992)
Working Papers
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 May 1987)
Working Papers
Keywords
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 August 1992)
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 April 1989)
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 January 1997)
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 July 1991)
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 August 1991)
Working Papers