HispanicPundit + wages   379

Daron Acemoglu on Shared Prosperity and Good Jobs - Econlib
MIT economist gives the progressive defense of wage stagnation and the possible solutions. Minimum wage at the ~58min mark.
wages  Inequality  econtalk  Acemoglu  minimum-wage 
25 days ago by HispanicPundit
$298,000 per LA teacher: Where does it go? — Joanne Jacobs
Los Angeles Unified School District collected $7.2 billion in revenues in 2017–18, or $298,000 per teacher, writes David Crane, a Stanford lecturer and president of Govern California. While revenue per teacher rose by 42 percent over four years, spending on teacher salaries rose only 20 percent, from $72,000 to $87,000 per teacher.”
teachers  wages  LosAngeles  unions  jacobs 
february 2019 by HispanicPundit
Why do women earn less than men? Evidence from train and bus operators - Marginal REVOLUTION
Even in a unionized environment, where work tasks are similar, hourly wages are identical, and tenure dictates promotions, female workers earn $0.89 on the male-worker dollar (weekly earnings). We use confidential administrative data on bus and train operators from the Massachusetts Bay Transportation Authority (MBTA) to show that the weekly earnings gap can be explained entirely by the workplace choices that women and men make. Women value time and flexibility more than men. Women take more unpaid time off using the Family Medical Leave Act (FMLA) and work fewer overtime hours than men. Men and women plan to work similar overtime hours when they are scheduled three months in advance, but men actually work nearly 50% more overtime hours than women. Women with dependents value time away from work more than do men with dependents. When selecting work schedules, women try to avoid weekend, holiday, and split shifts more than men. To avoid unfavorable work times, women prioritize their schedules over route safety and select routes with a higher probability of accidents. Women are less likely than men to game the scheduling system by trading off work hours at regular wages for overtime hours at premium wages. Conditional on seniority, which dictates choice sets, the weekly earnings gap can be explained entirely by differences in operator choices of hours, schedules, and routes.
genderissues  wages  NBER  Cowen  unions 
november 2018 by HispanicPundit
What wage mystery? - Econlib
There’s no wage mystery.  When NGDP growth slows, wage growth will usually (not always) slow as well.  If you want faster nominal wage growth, then adopt a more expansionary monetary policy.  If you want faster real wage growth, then deregulate the economy and do tax reforms that encourage saving.  Printing money won’t boost real wages.
wages  Henderson  Sumner 
october 2018 by HispanicPundit
Stagnating Wages Don't Tell the Whole Story - Bloomberg
The first reason this news should be less disturbing than it appears is that compensation includes benefits, not just wages, and the proportion of benefits to wages has been rising. Average compensation must therefore have risen faster than average wages have.
wages  ponnuru  bloomberg 
august 2018 by HispanicPundit
Dr. Pritchett's Six Bitter Pills, Bryan Caplan | EconLog | Library of Economics and Liberty
3. Another is that on many individualized indicators of well-being (education, health, malnutrition, self-reported subjective well-being) the gaps between the sexes within poor countries are at least an order of magnitude smaller than the gaps between males in poor countries and females in rich (OECD) countries.

4. Another is the point Dani Rodrik has made (and Branko and me using Engle curves and food shares not income) that the rich in poor countries (e.g. 95th percentile) are much poorer than the poor in rich countries (say 20th percentile).
Inequality  Poverty  pritchett  blattman  Caplan  genderissues  wages  Immigration 
april 2018 by HispanicPundit
Reich in NYT: "How Genetics Is Changing Our Understanding of ‘Race’", by Steve Sailer - The Unz Review
Harpending noted in his West Hunter blog with Greg Cochran that in typical African farming cultures, where weeding is done more with hoes than plows, black women tend to work harder than black men, an observation rather similar to the results found in Stanford economist Raj Chetty’s brand new paper on the gender gap in earnings of African-Americans.
Blacks  wages  genetics  Africa  Chetty  Sailer 
march 2018 by HispanicPundit
What teachers make — with cost of living — Joanne Jacobs
The top paying states, adjusting for cost of living, are Michigan, Massachusetts, Ohio and Pennsylvania.

Hawaii, which ranks 18th before the COLA, falls to last. Maine, South Dakota, Arizona and Utah also pay poorly.

New York ranks first in average salary at $77,957 but only 17th after the adjustment. California and Washington, D.C. also fall to the middle, despite high dollar amounts.
teachers  wages  jacobs 
march 2018 by HispanicPundit
Male Uber Drivers Earn More and It's Not Due to Discrimination, David Henderson | EconLog | Library of Economics and Liberty
The growth of the "gig" economy generates worker flexibility that, some have speculated, will favor women. We explore one facet of the gig economy by examining labor supply choices and earnings among more than a million rideshare drivers on Uber in the U.S. Perhaps most surprisingly, we find that there is a roughly 7% gender earnings gap amongst drivers. The uniqueness of our data--knowing exactly the production and compensation functions--permits us to completely unpack the underlying determinants of the gender earnings gap. We find that the entire gender gap is caused by three factors: experience on the platform (learning-by-doing), preferences over where/when to work, and preferences for driving speed. This suggests that, as the gig economy grows and brings more flexibility in employment, women's relatively high opportunity cost of non-paid-work time and gender-based preference differences can perpetuate a gender earnings gap even in the absence of discrimination.
wages  genderissues  uber  Henderson 
february 2018 by HispanicPundit
Two Sided Tango – spottedtoad
Google needs diversity, or at least well-off people who care about diversity, in the audience for the advertisers who pay its bills, but is still only 2% black among its employees. It’s not alone- of the big tech companies, only Amazon (which has a larger low-education workforce at its warehouses) and Apple (which has a more diverse staff at its retail stores) are significantly higher, and Facebook (another two-sided market winner) is a measly 1% black:
google  diversity  demand  SpottedToad  Blacks  wages  California 
february 2018 by HispanicPundit
Should tuition waivers be taxed? - Marginal REVOLUTION
My overall opinion here is the same as with taxes on private university endowments: no.  The federal government needs to stick to a budget, and broadening the tax base in this way would only postpone that needed development.  At some margins, “starving the beast” is a good idea, even if it doesn’t always work.
TrumpTaxCut  Cowen  tuition  wages 
december 2017 by HispanicPundit
The Gender Gap in STEM is NOT What You Think - Marginal REVOLUTION
Put (too) simply the only men who are good enough to get into university are men who are good at STEM. Women are good enough to get into non-STEM and STEM fields. Thus, among university students, women dominate in the non-STEM fields and men survive in the STEM fields. (The former is mathematically certain while the latter is true only given current absolute numbers of male students. If fewer men went to college, women would dominate both fields). I don’t know whether this story will hold up but one attractive feature, as a theory, is that it is consistent with the worrying exit from the labor market of men at the bottom.
genderissues  wages  card  NBER  tabarrok 
september 2017 by HispanicPundit
A politically incorrect guide to affirmative action
If a meritocratic regime is defined as a decision-making procedure that ensures the average quality of the people hired is maximized, then as long as you know there are differences in ability between groups, meritocracy requires that you discriminate against people on the basis of what group they belong to. This is a dirty little secret that most people on either side of the debate have no idea about, while those who do are very careful not to reveal it, because it’s kind of radioactive.
affirmative-action  genderissues  wages  google  lemoine 
september 2017 by HispanicPundit
Washington Monthly | Hot for Teachers
But in the seven years since Rhee left Washington—and with the national press having turned its attention elsewhere—Rhee’s successors have quietly but persistently continued to pursue change. Teaching in D.C., and in public education generally, had long been a low-status occupation marked by weak standards and factory-like work rules. Building on Rhee’s early work, and learning from her mistakes, her successors have effectively transformed it into a performance-based profession that provides recognition, responsibility, collegiality, support, and significant compensation—features that policy experts, including many of Rhee’s harshest critics, have long sought but never fully achieved.
Rhee  charter  Education  teachers  teaching  wages  WashingtonMonthly 
august 2017 by HispanicPundit
A new paper rekindles a tiresome debate on immigration and wages
Mr Borjas’ work has sparked plenty of controversy–his blog notes at least three challenges to his work, see here, here and here. After a few months of relative tranquility, Mariel has once again come into the limelight thanks to a new paper by Michael Clemens of the Centre for Global Development, a think-tank, and Jennifer Hunt of Rutgers University. Mr Borjas has since responded to this critique; their correspondence appears to have proceeded ad infinitum. (A working-paper response to Mr Clemens and Ms Hunts' critique can be found here.)
immigration  wages  Borjas  debates  economist 
june 2017 by HispanicPundit
Study: Merit pay works — Joanne Jacobs
“The findings suggest that merit pay is having a pretty significant impact on student learning,” said author Matthew G. Springer, an assistant professor of public policy and education at Vanderbilt University.
merit  teachers  teaching  wages  jacobs 
april 2017 by HispanicPundit
Greg Mankiw's Blog: The Myth of Stagnant Income
Despite the large increase in U.S. income inequality, consumption for families at the 25th and 50th percentiles of income has grown steadily over the time period 1960-2015. The number of cars per household with below median income has doubled since 1980 and the number of bedrooms per household has grown 10 percent despite decreases in household size. The finding of zero growth in American real wages since the 1970s is driven in part by the choice of the CPI-U as the price deflator; small biases in any price deflator compound over long periods of time. Using a different deflator such as the Personal Consumption Expenditures index (PCE) yields modest growth in real wages and in median household incomes throughout the time period. Accounting for the Hamilton (1998) and Costa (2001) estimates of CPI bias yields estimated wage growth of 1 percent per year during 1975-2015. Meaningful growth in consumption for below median income families has occurred even in a prolonged period of increasing income inequality, increasing consumption inequality and a decreasing share of national income accruing to labor.
wages  labor  mankiw  NBER 
april 2017 by HispanicPundit
The Age Pay Gap - Cafe Hayek
Yes, women on average are paid about 20 percent less than are men on average.  But when correction is made for factors such as work experience, education, and job type this difference shrinks to only about five percentage points (and even here there’s no good reason to conclude that this small difference reflects gender discrimination).
genderissues  wages  boudreaux 
april 2017 by HispanicPundit
Earnings of Undocumented Immigrants – LaborEcon
First, the age-earnings profile of undocumented workers lies far below that of legal immigrants and of native workers, and is almost perfectly flat during the prime working years. Second, the unadjusted gap in the log hourly wage between undocumented workers and natives is very large (around 40 percent), but half of this gap disappears once the calculation adjusts for differences in observable socioeconomic characteristics, particularly educational attainment. Finally, the adjusted wage of undocumented workers rose rapidly in the past decade. As a result, there was a large decline in the wage penalty associated with undocumented status.
immigration  wages  Borjas 
march 2017 by HispanicPundit
China wage fact of the day
Average hourly wages in China’s manufacturing sector trebled between 2005 and 2016 to $3.60, according to Euromonitor, while during the same period manufacturing wages fell from $2.90 an hour to $2.70 in Brazil, from $2.20 to $2.10 in Mexico, and from $4.30 to $3.60 in South Africa.

Chinese wages also outstripped Argentina, Colombia and Thailand during the same time, as the country integrated more closely into the global economy after its 2001 admission into the World Trade Organisation.

…Manufacturing wages in Portugal have plunged from $6.30 an hour to $4.50 last year, bringing wage levels below those in parts of eastern Europe and only leaving them 25 per cent higher than in China.
China  wages  cowen 
march 2017 by HispanicPundit
Trump's Plan to Bring Back Manufacturing Isn't Crazy - Bloomberg View
To see what a U.S. manufacturing export boom would look like, we need only consider Germany. Germany is a rich, productive country with a very large trade surplus. It's succeeding at doing exactly the kind of thing Navarro wants. But the percentage of German workers employed in the manufacturing sector has gone down and down, just as it has in the U.S.
trade-deficits  germany  TrumpAdministration  China  wages 
march 2017 by HispanicPundit
TheMoneyIllusion » In China, the nominal wages are real
Across China’s labour force as a whole, hourly incomes now exceed those in every major Latin American state apart from Chile, and are at around 70 per cent of the level in weaker eurozone countries, according to data from Euromonitor International, a research group.
China  wages  labor 
march 2017 by HispanicPundit
Some Evidence on Competition in Labor Markets - Cafe Hayek
China has over a billion workers, tremendous poverty and no trade unions, so if there’s one place on this planet you’d expect workers to earn minimum-wage it’s China.

Yet we had to pay 40% over minimum wage to attract even the lowest unskilled workers, such is the demand for labor.
unions  China  minimum-wage  wages  labor  boudreaux 
january 2017 by HispanicPundit
The effects of public unions on compensation - Marginal REVOLUTION
This paper seeks identify the effect that public sector unions have on compensation. Specifically, I look at the compensation premium associated with teachers’ unions in Wisconsin. In 2011, Wisconsin passed a landmark law (Act 10) which significantly lowered the bargaining power of all public sector unions in the state. Using an event study framework, I exploit plausibly exogenous timing differences based on contract renewal dates, which caused districts to be first exposed to the new regulations in different years. I find that the reduction in union power associated with Act 10 reduced total teacher compensation by 8%, or $6,500. Roughly two-thirds of this decline is driven through reduced fringe benefits. The analysis shows that the most experienced and highest paid teachers benefit most from unionization. I supplement the event study approach with synthetic control and regression discontinuity methods to find that regulatory limits on contract terms, rather than other mechanisms such as state financial aid cuts or union decertification, are driving the results.
labor  unions  teachers  wages  Walker  cowen  NBER 
december 2016 by HispanicPundit
The CEA's Mixed Thinking on Labor Market Monopsony, Part IV, David Henderson | EconLog | Library of Economics and Liberty
The CEA does not point out that there is a big difference between the typical woman who works full time and the typical man who works full time: years out of the labor force for women due mainly to child rearing. When economists look at women and men who have never been out of the labor force, and correct for occupation, etc., they find almost total equality of wages.
CEA  wages  genderissues  henderson 
november 2016 by HispanicPundit
Gauging Big Firms' Power Over Wages | Moody's Analytics Economy.com
The CEA paper also recommends more unionization as a solution. While unions can be efficient in the face of monopsony power, increased unionization won’t necessarily occur at the employers with monopsony power. Indeed, the literature consistently shows that unionization decreases job growth at the firm level. This undermines the CEA’s conjecture that unions may deliver “even more efficient levels of employment.”
labor  unions  wages  CEA  Ozimek 
november 2016 by HispanicPundit
Not always low wages: What Walmart’s pay-rise experiment says about the future of low-wage work | The Economist
Is this what Walmart is doing? It doesn't seem so. Instead the firm appears to be trying to raise worker quality, both by attracting better applicants and by using higher pay to encourage existing workers to enrol in training courses. These aren't efficiency wages; better workers can earn more on the labour market. Neither would it be good for workers generally if every firm decided to pay efficiency wages, which only work if firms can draw on a pool of surplus workers and workers can't do better by quitting and going elsewhere. There is not a free lunch to be had here, sadly.
wal-mart  labor  wages 
october 2016 by HispanicPundit
Wal-Mart's Wage Experiment Works ... for Workers - Bloomberg View
That is, I predicted that workers would like making more per hour, rather than less (who wouldn’t?), and that this would allow Wal-Mart to attract a better class of worker, or at least keep the workers it had around longer, reducing turnover costs and allowing the company to deliver a better customer experience. But I was less sure that this would actually deliver increased profits; indeed, Irwin notes that it hasn't. Revenue is up, as are ratings in customer surveys. But so far, that’s not translating into enhanced profitability. “Operating income for Walmart’s United States stores was down 6 percent in the most recent quarter,” Irwin writes, “reflecting higher labor costs and other new investments.”
wal-mart  wages  labor  mcardle 
october 2016 by HispanicPundit
ECONJEFF: New working paper on teacher unions
Our estimates suggest that teacher collective bargaining worsens the future labor market outcomes of students: living in a state that has a duty-to-bargain law for all 12 grade-school years reduces earnings by $800 (or 2%) per year and decreases hours worked by 0.50 hours per week. The earnings estimate indicates that teacher collective bargaining reduces earnings by $199.6 billion in the US annually. We also find evidence of lower employment rates, which is driven by lower labor force participation, as well as reductions in the skill levels of the occupations into which workers sort.
unions  teachers  wages  jeffsmith 
august 2016 by HispanicPundit
Why Don’t Teachers Make More Money? - The American Interest
n other words, if state and local governments (under intense pressure from unions) had not over-promised and under-funded their teacher pension funds for the past generation, about two-thirds of EPI’s reported salary gap could be wiped out overnight. It’s data like these that make skeptics cautious about giving more power to teachers’ unions and simply pumping more money into the existing system without changes to the way it is operated.
teachers  wages  pensions  AmericanInterest 
august 2016 by HispanicPundit
The Middle Class is Shrinking Because Many People are Getting Richer
Mr. Rose adjusts these thresholds for inflation back to 1979 and finds the population earning this much money has never been so large. One could quibble with his exact thresholds or with the adjustment that he uses for inflation. But using different measures of inflation, or using higher income thresholds for the upper-middle class, produces the same result: substantial growth among this group since the 1970s.
middleclass  wages  tabarrok 
july 2016 by HispanicPundit
Hilary Clinton, however, wants to change all that. She wants to force you into a profit sharing arrangement that is, for all practical purposes, equivalent to forcibly converting part of your salary into corporate stock. If you were planning to do that anyway, this will make no difference to you. If you weren’t planning to do it anyway — if, for example, you preferred to diversify your risks by investing your wages in some other industry — then, of course, this will make you worse off.
Hillary  wages  landsburg 
july 2016 by HispanicPundit
Debunking the EPI on the Cadillac tax
Defending the healthcare vs wages trade-off from pro-union EPI.
EPI  healthcare  costs  wages 
april 2016 by HispanicPundit
The Decline in Labor's Share of U.S. Income, David Henderson | EconLog | Library of Economics and Liberty
I think that, although Tim mentions it, he goes too quickly past one of the main reasons for the decline, namely a change in measurement....How important is this? Armenter shows a graph in which he keeps the BLS's pre-2001 methodology. With no change in methodology, labor's share falls, but only from about 62 or 63 percent to about 59 percent. This is still a substantial fall, but had I known this when I was teaching last fall, I would still have pointed it out, but would not have expressed nearly the concern I did.
labor  wages  henderson 
september 2015 by HispanicPundit
Did Obama Just Give You a Raise? - Bloomberg View
There are two main problems. The first is that the change, according to economists who've advocated it, won't do much to raise incomes. Employers will cut wage rates to keep their outlay fixed. "The costs of increased coverage would ultimately be borne by workers as employers set base wages taking expected overtime pay into account,"
wages  obamafailures  bloomberg 
july 2015 by HispanicPundit
The Inanity of the Welfare State, Bryan Caplan | EconLog | Library of Economics and Liberty
If government really wanted to help the poor, it wouldn't tax everyone to fund everyone. It would raise only taxes required to help the genuinely poor, then say "mission accomplished." Relative to the status quo, that means big tax cuts and stringent means-testing. Picture a world where the lowest quintile continues to receive whatever it gets now, all other quintiles get zero, and the government refunds all the savings with tax cuts. Then ask yourself, "Why not?"
progressive  taxes  wages  caplan  poverty 
december 2014 by HispanicPundit
Map: Do you earn enough to afford the median rental in your city? - Vox
That's why it's instructive to look at places like Greater Austin and the Twin Cities. These are fairly affluent areas, with highly educated populations and high wages. But they don't have the combination of land scarcity and strict zoning that make housing units so scarce in coastal California and the Northeast Corridor. And that makes a big difference. $32.66 is enough to afford the median rental in the Austin area and $30.16 is enough for Minneapolis — a little bit less than the median earnings of an American household with two full-time workers. In other words, affluent places where it's easy to build have rents 30 percent cheaper (or more) than hard-to-build cities like New York and San Francisco.
wages  standardofliving  real-estate  environmentalism  yglesias  california 
december 2014 by HispanicPundit
There's nothing wrong with stores staying open on Thanksgiving - Vox
There are a lot of downsides to working on any given day, not just Thanksgiving. But generally speaking people show up for work for a pretty good reason. They pay you! This basic logic whereby working leads to money does not evaporate simply because it is traditional to consume turkey on the fourth Thursday in November. Covert praises stores that will be closed as "deciding to let their workers stay home." But there is no letting of anyone do anything about it. Stores that close on Thanksgiving are forcing their workers to skip a day on which they might otherwise be earning income. One could just as easily write that stores who are opening on Thanksgiving are "deciding to let their workers earn money" while the Petcos and GameStops of the world are refusing to.
wages  regulations  yglesias 
november 2014 by HispanicPundit
Should we pay teachers more?
The typical teacher in New York with five years’ experience makes between $64,000 and $76,000. The charter school, known as TEP, would pay much more. But in exchange, teachers, who are not unionized, would accept additional responsibilities, and the school would keep a close eye on their work. Four years later, students at TEP score better on state tests than similar students elsewhere. The differences were particularly pronounced in math, according to a new study from Mathematica Policy Research. (The study was funded by the Gates Foundation.) After four years at the school, students had learned as much math as they would have in 5.6 years elsewhere… The gains erased 78 percent of the achievement gap between Hispanic students and whites in the eighth grade
teachers  wages  cowen 
october 2014 by HispanicPundit
Two charts that show nursing is the job of the future - Vox
Although registered nurses are the largest occupation with above-average earnings, the larger health care sector is full of opportunities. The "health care practitioners and technical" occupational category contains a total of 7.8 million workers at an average wage of $74,740 — well above the national average. And one great virtue of health care occupations is that there is demand for nurses and dentists and such basically everywhere that people live. You don't need to be part of a handful of specific geographical clusters to take advantage of your skills the way that you do for many other relatively high paid jobs.
majors  wages  yglesias 
september 2014 by HispanicPundit
Where are the wage gains going?
From 2000 to 2012, American workers as a whole had a tough time, as population grew much faster than new jobs and many people gave up looking for work. There was one major exception: jobs paying $100,000 to $400,000 (in 2012 dollars). This is what I call America’s new prosperous class. Many of these workers have an advanced degree. They no longer struggle, but they continue to work because their wealth is far from adequate to support their lifestyles. The number of prosperous-class jobs soared to 10.8 million, an increase of 2.1 million since 2000. That is almost 10 times the growth rate of jobs paying either more or less. Most astonishing is how much of the overall increase in wages earned by the 153.6 million people with a job in 2012 went to this narrow band of very well paid workers: Just 7 percent of all jobs pay in this range, but those workers collected 76.9 percent of the total real wage increase.
wages  jobs  inequality  engineering  cowen 
august 2014 by HispanicPundit
Money buys happiness: Three quick lessons about life satisfaction in America.
It turns out that making more than $500,000 a year is pretty sweet. Or at least, earning that much compels you to tell a pollster that everything in life is dandy. The graph below, showing that everybody earning half a million or more is "very happy," is based on a Gallup poll from 2007, the results of which reappeared in a 2013 paper by Justin Wolfers and Betsey Stevenson. Studies have suggested that after a certain income, money yields diminishing returns on happiness. But Wolfers and Stevenson say that’s not really the case. Without controlling for other factors such as the state of your marriage or health—which, by the way, also correlate strongly with income—the relationship between your bank account and your self-reported peace of mind seems pretty clear.
happiness  wages  wolfers  slate 
june 2014 by HispanicPundit
Is Welfare a Band-Aid for Nominal Wage Rigidity?, Bryan Caplan | EconLog | Library of Economics and Liberty
I say both sides are wrong. Holding wages constant, cutting unemployment benefits does nothing to make employers want to hire more people. But cutting unemployment benefits does corrode nominal rigidity, leading - by a slow and painful path - to higher employment. When the government cuts unemployment benefits, don't expect a sudden return to full employment. Instead, expect a gradual increase in job hunting, which in turn sluggishly drags wages back down to full-employment levels.
welfare  wages  labor  caplan 
april 2014 by HispanicPundit
Wolfers Responds on Happiness, Bryan Caplan | EconLog | Library of Economics and Liberty
b. The other way of saying this is that it doesn't matter that the effect of income on happiness is "small": if there exist massive disparatives in income, then a small coefficient can have a big effect. And I think there exist massive disparaties in income (and these largely explain the massive disparaties in happiness).
happiness  wages  wolfers  caplan 
march 2014 by HispanicPundit
The Minimum Wage vs. Welfare: Band-Aid or Salt?, Bryan Caplan | EconLog | Library of Economics and Liberty
The lesson: When the minimum wage causes involuntary unemployment, raising welfare can serve as a band-aid for the labor market. Workers deprived of the right to provide for themselves can subsist on government money. Yet when welfare convinces people to abandon honest toil, raising the minimum wage is no band-aid. Instead, raising the minimum wage salts the wounds. The reason, to repeat: While a higher minimum wage does indeed make workers more eager to work, it also automatically makes employers less eager to hire.
minimum-wage  welfare  wages  labor  caplan 
march 2014 by HispanicPundit
Ballparking the Marital Return to College, Bryan Caplan | EconLog | Library of Economics and Liberty
Now suppose that only half of the raw probability difference is causal. This still means that if you finish college, you're a full 28 percentage-points ([65-9]*.5) more likely to marry a college grad than a high school grad. You could even say that the average college grad who plans to eventually marry can expect to enjoy the financial benefits of 1.28 sheepskins, rather just one. As long as the gender earnings gap continues, this marital return is larger for women than for men. But given modern women's high employment rates, the marital return is clearly a big deal for men, too.
marriage  education  university  wages  caplan 
march 2014 by HispanicPundit
Pittsburgh: The most affordable city in the world?
Methodological quibbles aside, I think this at least gives you a decent approximation. Its 10 most affordable cities of Pittsburgh, Detroit, Atlanta, Cleveland, St. Louis, Kansas City, Dallas, Minneapolis, Houston, and Charlotte, N.C., are among the most affordable cities in America. Conversely, Hong Kong and San Francisco are very expensive. The policy bottom line is that "the affordable markets are generally characterized by liberal land use regulation"—by which the authors mean "liberal" as in "not too strict" rather than "liberal" as in "left-wing."
standardofliving  middleclass  real-estate  wages  environmentalism  yglesias 
january 2014 by HispanicPundit
Worst Column I Read Today | John Goodman's Health Policy Blog | NCPA.org
Only trouble is that Grayson and Ritholtz don’t understand a thing about the labor market. As is well known by labor economists, welfare benefits have very high implicit marginal tax rates. As a result, they discourage work rather than subsidize it. That means Wal-Mart and McDonald’s have to pay higher wages than they otherwise would to get the labor they need. It’s Economics 101. Casey Mulligan estimates that half the excess unemployment we have experienced in recent years is due to the incentive effects of entitlement benefits. And that doesn’t do anything to help Wal-Mart or McDonald’s.
labor  wages  wal-mart  mulligan  goodman  regulations 
december 2013 by HispanicPundit
Why Do Firms Prefer More Able Workers?, Bryan Caplan | EconLog | Library of Economics and Liberty
After putting the puzzle on the table, Romer offers an elegant solution: Firms prefer more able workers because pay is more equal than productivity. Why? Because inequality hurts morale of lower-paid workers. After presenting a mathematical model to show that his story is internally consistent, Romer discusses empirical evidence in favor of his story. He starts by surveying "observers of the labor market":
labor  romer  caplan  wages  productivity 
october 2013 by HispanicPundit
Freakonomics » A Unifying Theory of Why Women Earn Less
What’d we find? Women were 70% less likely than men to go after the job if it had the competitive pay scale. This result accords with the broader insights from laboratory experiments that others—Muriel Niederle, Lise Vesterlund, Aldo Rustichini, etc.—have found. Of course, this estimate doesn’t apply to every type of job and every type of person in the country, but it does underscore the fact that, when it comes to competition at a potential job, women aren’t always interested in leaning in.
feminists  freakonomics  wages 
october 2013 by HispanicPundit
Does College Pay Off for Cashiers? Yes & No, Bryan Caplan | EconLog | Library of Economics and Liberty
However, if your refined question is, "Do college-grad cashiers make more money than high school grads?" the answer is No. In Carnevale and Rose's updated numbers, the median wage for all high school grads is $25,316. The cashier with a bachelor's degree therefore makes 28% less than the typical high school graduate. Four years of college for that?!
university  caplan  majors  wages 
october 2013 by HispanicPundit
Some evidence that incentives for good teaching can work
We present regression-discontinuity (RD) estimates that compare the retention and performance outcomes among low-performing teachers whose ratings placed them near the threshold that implied a strong dismissal threat. We also compare outcomes among high-performing teachers whose rating placed them near a threshold that implied an unusually large financial incentive. Our RD results indicate that dismissal threats increased the voluntary attrition of low-performing teachers by 11 percentage points (i.e., more than 50 percent) and improved the performance of teachers who remained by 0.27 of a teacher-level standard deviation. We also find evidence that financial incentives further improved the performance of high-performing teachers (effect size = 0.24). -
merit  cowen  wages  teachers 
october 2013 by HispanicPundit
Why Don't Wages Fall During a Recession?: Q&A With Me Channeling Truman Bewley, Bryan Caplan | EconLog | Library of Economics and Liberty
Question: Do pay cuts cause any additional problems besides bad morale? Answer: Yes. Employers expect their best workers to leave first. With lay-offs, in contrast, employers make their worst workers leave first. (Exception: Unionized firms usually lay-off on the basis of seniority, not productivity). Question: Doesn't this suggest that the better-paid employees were underpaid? Answer: Absolutely. Internal horizontal pay equity norms depress pay for good workers and inflate pay for bad workers.
labor  jobs  caplan  keynes  wages 
october 2013 by HispanicPundit
A Primer on Malemployment, Bryan Caplan | EconLog | Library of Economics and Liberty
Most observers agree that a college degree yields, on average, a large earnings advantage. But our findings reveal that this advantage is heavily dependent on the ability of college graduates to find employment in CLM occupations. College graduates who work in semiskilled /unskilled bluecollar, low-end service and sales, transportation and warehousing, and other occupations outside of the CLM experience have much lower annual earnings that may not justify the economic and personal costs of completing a college degree program.
university  caplan  majors  wages 
october 2013 by HispanicPundit
Why are CEO salaries rising?
The evidence is not supportive of the arguments that the top incomes have been driven by managerial power or poor corporate governance in public companies. Public company executives, who should be more subject to problems of managerial power problems, saw their pay and relative standing increase less over this period than executives of closely-held company businesses that are, by definition, controlled by large shareholders or the executives themselves and are subject to more limited agency problems. Furthermore, the Bakija, Cole, and Heim (2012) findings are not consistent with loosening social norms being an important factor in the increase in incomes at the top, as it is the pay of closely-held businesses — where executive pay is private and undisclosed — that increased the most. - See more at: http://marginalrevolution.com/marginalrevolution/2013/08/why-are-ceo-salaries-rising.html#sthash.a9cs9nzN.dpuf
corporate  cowen  culture  wages 
october 2013 by HispanicPundit
Wal-Mart vs. Costco III, Why My Critics Are Wrong - Bloomberg
Wal-Mart’s profit margin is about twice what Costco’s is. But its ROIC is only marginally higher: 13.77 percent vs. 12.88 percent. The company needs to put a lot more money into warehouses, trucks, whizzy computer systems, and cinderblock stores in order to generate those profits -- not surprising given the complexity of its supply chain, and the number of products it offers. Owners of capital generally ask to be compensated for using it to build stuff, rather than spending it. Wal-Mart is no exception. If it targeted Costco’s ROIC, rather than its own, Wal-Mart could free up a bit of money -- about a billion dollars. If it gave two-thirds of that billion to its 1.4 million U.S. workers, each worker would get about $470, or $9 a week.
mcardle  jobs  sidebar  wal-mart  wages 
september 2013 by HispanicPundit
They Should Instead Be Praising Wal-Mart
Why protest only against Wal-Mart? The fact that many people choose to work for that company at wages that protestors consider to be too low means that every other company in the world also refuses to offer these workers (with their current skills) higher-paying jobs. Indeed, Wal-Mart clearly bests these other companies – and bests also non-profit employers such as government – at making attractive offers to its workers.
boudreaux  sidebar  wal-mart  wages 
september 2013 by HispanicPundit
Higher ed pays — for engineers, nurses — Joanne Jacobs
Higher education pays — for technical graduates, concludes a new study. However, “The S in STEM (Science, Technology, Engineering, and Mathematics) is oversold,” the report found. Biology and chemistry majors can expect to earn as little as liberal arts majors.
jacobs  sidebar  majors  engineering  wages 
september 2013 by HispanicPundit
Why Can't Labor Be More Like Housing?, Bryan Caplan | EconLog | Library of Economics and Liberty
Which market works better (or "less badly") during recessions? "Housing" is the obvious answer. Sudden price falls provoke angry complaints, but at least property owners can still sell by cutting their asking price. And despite some inefficiencies, buyers gain by roughly the same amount that sellers lose. In the labor market, in contrast, unlucky workers' labor income utterly vanishes - and lots of perfectly good labor goes to waste.
labor  caplan  economics  sidebar  wages 
august 2013 by HispanicPundit
The Tears of Termination, Bryan Caplan | EconLog | Library of Economics and Liberty
Yes, unemployment really is a grave evil. Fortunately, this evil is avoidable. We just need to make wages far more flexible. The first step is radical labor market deregulation. The second step is a massive cultural shift: We have to know in our heads and feel in ours hearts that wage cuts are the potent, humane medicine that prevents and cures the plague of unemployment.
mulligan  labor  caplan  sidebar  wages 
august 2013 by HispanicPundit
Costco's Second-Class Citizens - Bloomberg
According to the linked article, these demonstrators make up about 10 percent of Costco’s in-store workforce. I had no idea that they didn’t work for Costco. It seems that the majority of people who I interact with on a Costco trip actually work for someone else -- captive contractors who exist to provide demonstration staff for Costco stores.
mcardle  sidebar  wal-mart  wages 
august 2013 by HispanicPundit
Why have corporate profits been high?
…David Bianco, chief equity strategist at Deutsche Bank, has shown that most of the margin expansion over the past 15 years has come from two factors: the increased proportion of foreign profits, which have higher margins because of lower corporate tax rates; and the increased weight of the technology sector in the S&P 500 index, a sector that usually carries the highest profit margins.
cowen  sidebar  capital  wages 
august 2013 by HispanicPundit
How to Fund All Your Favorite Causes--and Get Rich in the Process, Art Carden | EconLog | Library of Economics and Liberty
Second, you could recognize that starting your own firm might be really difficult and instead just decide to buy out some of the companies that are overpaying their executives. Since you know that this is going on, it should be a can't-miss deal. Assemble your gang of corporate raiders, acquire controlling interest in (say) McDonald's, fire everyone at the top, replace them with lower-paid but equally-competent executives, and watch the higher profits roll in. Once again, you can take a handsome cut of the profits for yourself and still have a lot of money left over to fund your favorite progressive causes.
corporate  krugman  carden  sidebar  wages 
august 2013 by HispanicPundit
CEOs Aren't "Overpaid," They Just Have Way Too Much Money
In response to yesterday's column on CEO pay, a lot of people wanted to engage in a debate over whether or not chief executives are "overpaid." I think this is a not-very-helpful way of looking at the issue. But if you want to think about it, a good starting place is that it's easy to see why a rational shareholder would want to invest huge sums of money in CEO compensation. Take CBS, which I write about in the column. They had almost $15 billion in revenue in 2011. So the value to the company of a CEO who can boost revenue 1 percent higher than a replacement-level CEO would to the company is about $150 million. So if you have a 50 percent confidence level that CEO Leslie Moonves is 1 percent better for the company than a replacement-level CEO, then you'd be justified in paying him as much as $75 million a year—making him "underpaid" with 2012 compensation of around $60 million.
corporate  yglesias  sidebar  wages 
july 2013 by HispanicPundit
CONVERSABLE ECONOMIST: 250,000 New Permanent Federal Employees?
Whenever I see these numbers, the sheer size of federal employment widens my eyes. About 144 million Americans are employed, and more than 1% of them work are civilian employees of the federal government. While unemployment rates have been wrenchingly high for the last five years, government employment has been growing. The number of non-seasonal permanent full-time federal employees rose by about 250,000 from 2006 to 2011--a rise of about 15%--before falling back slightly in 2012.
jobs  timtaylor  sidebar  government  wages 
june 2013 by HispanicPundit
CONVERSABLE ECONOMIST: A Legal Right to Paid Vacation?
Of course, more vacation time is not a free lunch. One reason why per capita GDP is lower in these other high income countries than in the United States is the average U.S. worker spends more hours on the job. There are political economy issues, too: it makes my economist's skin crawl to imagine Congress and a president happily handing out paid vacation days to all, with little concern for the tradeoffs. But on the other side, it's also true that many of the rules that govern employment, and vacation time, are based in tradition and an implicit agreement about what a "job" will mean, not the result of a free-form multidimensional negotiation between employers and potential employees. It can be quite difficult for an individual, especially one seeking a low-skilled job, to negotiate even for flexible hours, much less for paid vacation or company-paid health insurance.
labor  timtaylor  leisure  sidebar  wages 
june 2013 by HispanicPundit
Do low wages for unskilled workers weaken the case for more immigration?
In my view the evidence (and here) suggests that the negative wage pressures on unskilled labor, to the extent they have international origins at all (as opposed to TGS or automation or political factors), come more from outsourcing and trade than from immigration. So if you limit low-skilled immigration, outsourcing likely will go up, as it would be harder to find cheap labor in the United States. The United States will lose the complementary jobs as well, such as the truck driver who brings cafeteria snacks to the call center. Conversely, if you increase low-skilled immigration, you will also get more investment in the United States and more complementary jobs as well and possibly some increasing returns from clustering and maybe more net tax revenue too. On top of that the individuals themselves have greater choice as to where to spend their lives and build their careers.
jobs  cowen  free-trade  immigration  sidebar  wages 
may 2013 by HispanicPundit
Monetizing Job Security, Bryan Caplan | EconLog | Library of Economics and Liberty
Federal workers' total compensation far exceeds that of private sector workers. The CBO says so, and so does a large academic literature. One glaring omission, though, is federal job security. High job security is nice to have during normal times, and a godsend during recessions. But since it has no explicit budgetary cost, researchers ignore it. At least all the researchers I've seen.
jobs  unions  caplan  walker  sidebar  government  wages 
may 2013 by HispanicPundit
Freakonomics » When a Wife Earns More
The distribution of the share of household income earned by the wife exhibits a sharp cliff at 0.5, which suggests that a couple is less willing to match if her income exceeds his. Within marriage markets, when a randomly chosen woman becomes more likely to earn more than a randomly chosen man, marriage rates decline. Within couples, if the wife’s potential income (based on her demographics) is likely to exceed the husband’s, the wife is less likely to be in the labor force and earns less than her potential if she does work. Couples where the wife earns more than the husband are less satisfied with their marriage and are more likely to divorce. Finally, based on time use surveys, the gender gap in non-market work is larger if the wife earns more than the husband.
freakonomics  sidebar  genderissues  marriage  wages 
may 2013 by HispanicPundit
CONVERSABLE ECONOMIST: What If You Aren't the Average College Student?
Finally, within schools there is a choice of field of study. Those who major in science, engineering, math, or business are likely to do much better than those who focus on arts or education.
university  jobs  timtaylor  sidebar  majors  engineering  wages 
may 2013 by HispanicPundit
Jobs Americans won't do: A myth, but a close approximation to the truth.
Very few Americans, after all, are willing to work as seasonal farm laborers at currently prevailing wages. So the wages for fruit picking go up. But there's not some God-given quantity of land that needs to be dedicated to agricultural pursuits and then land owners just pay whatever it costs to cultivate the land. Most land isn't cultivated at all. Increase the cost structure and we'll grow less fruit domestically and import more from abroad, worsening America's terms of trade and broadly lowering incomes across the country.
jobs  immigration  yglesias  sidebar  wages 
may 2013 by HispanicPundit
Stevenson and Wolfers debunk Easterlin paradox: More money makes people happier.
There's a bit of a social science old wives' tale out there holding that increased income doesn't really make people (or countries) happier beyond a certain point. Betsey Stevenson and Justin Wolfers have been arguing against this for years, and they now have their clearest statement of the point yet, which demonstrates that if there is a satiation point, nobody seems to have reached it.
wolfers  yglesias  happiness  sidebar  inequality  wages 
may 2013 by HispanicPundit
The Federal Pay Scale: Inflated Yet Compressed, Bryan Caplan | EconLog | Library of Economics and Liberty
3. Overcompensation is highest for the least-educated federal workers - +36% if you've got a high school diploma or less. As education rises, the federal worker premium falls. Federal workers with professional or doctoral degrees actually earn 18% less than private sector counterparts. Full results:
unions  caplan  walker  sidebar  CBO  government  wages 
april 2013 by HispanicPundit
Long-term unemployed face ferocious statistical discrimination.
Suppose you had to hire one of two candidates for a job, and you had to base the decision solely on a resume. No interview allowed. The resumes are identical, but one person lost her job in a mass layoff event last week, while the other lost her job in a mass layoff event a year ago. Who are you going to hire? If you're smart, you hire the woman who lost her job last week. You're being asked to make a decision based on very little information. By discriminating against the long-term unemployed candidate, you can in effect "outsource" your decision-making. Most likely this woman has interviewed for several jobs since being laid off. If she's still unemployed, there's probably something wrong with her. What? You don't know. You don't have any evidence. But faced with the need to decide under conditions of severe uncertainty it's a sound heuristic.
labor  jobs  discrimination  yglesias  sidebar  wages  statistics 
april 2013 by HispanicPundit
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