Nonparametric bounds on the returns to language skills

This paper applies the theoretical literature on nonparametric bounds ontreatment effects to the estimation of how limited English proficiency (LEP)affects wages and employment opportunities for Hispanic workers in theUnited States. I analyze the identifying power of several weak assumptionson treatment response and selection, and stress the interactions between LEPand education, occupation and immigration status. I show that thecombination of two weak but credible assumptions provides informative upperbounds on the returns to language skills for certain subgroups of thepopulation. Adding age at arrival as a monotone instrumental variable alsoprovides informative lower bounds.

How wide is the gap? An investigation of gender wage differences using quantile regression

In this paper we examine the determinants of wages and decompose theobserved differences across genders into the "explained by differentcharacteristics" and "explained by different returns components"using a sample of Spanish workers. Apart from the conditionalexpectation of wages, we estimate the conditional quantile functionsfor men and women and find that both the absolute wage gap and thepart attributed to different returns at each of the quantiles, farfrom being well represented by their counterparts at the mean, aregreater as we move up in the wage range.

Wage inequality in a frictional labor market

Wage inequality in the United States has grown substantially in thepast two decades. Standard supply-demand analysis in the empiricsof inequality (e.g.Katz and Murphy (1992)) indicates that we mayattribute some of this trend to an outward shift in the demand forhigh skilled labor. In this paper we examine a simple static channelin which the wage premium for skill may grow -increased firm entry.We consider a model of wage dispersion where there are two types ofworkers and homogeneous firms must set wages and preferences forwhat type of worker they would like to hire. We find that both thewage differential and the demand for high skill workers can increasewith the proportion of high skill workers -these high skill workerstherefore 'create' their own demand without exogenous factors. Inaddition, within group wage inequality can increase in step with thebetween group wage inequality. Simulations of the model are providedin order to compare the findings with empirical results.

Life-time redistribution effects of the Spanish public pension system

The paper analyses the inter and intragenerational redistribution effects ofthe public pensions system in Spain. This is achieved by first comparing the expected present value of life-time income transfers (PVT) and internalrates of return (IRR) of different population cohorts. Secondly, we study the intragenerational aspects of the Spanish public pensions by calculating PVTs the IRRs for workers of different categories, grouped by earnings, gender and marital status.The results obtained show the nature of the important intergenerational effects of the Social Security System in Spain. The oldest 1935 cohort clearlybenefits in relation to the youngest 1965 cohort. This is basically due to thegap between current wages and the contribution bases established in the 60s and 70s in Spain during the early stages of the Social Security System, and to the worsening shortfall in Social Security funding, combined with the longer of life expectancy.In addition, intragenerational effects exist by income levels. For contributors who pay between the minimum and the maximum allowable contribution bases, net transfers and rates of return are higher in actuarial terms for high incomecontributors. The social security `dealï is again more profitable for highincome individuals since they contribute at the maximum basis, with respect tolow income contributors at the minimum basis. This is due to the late entry and a higher survival rate for high income contributors.The system tends to favour women, given that they generally live longer than men and this factor is only partially offset by their lower wages. Married males, given the fact that they have longer life expectancy and leave a pension to their spouse, obtain higher present net transfers too than do single contributors.We close the paper with some comments on the slight impact and moderate effects of proposals for Social Security reform and on how these may change the previously observed redistribution effects.

Wage curves for Spain evidence from the family budget survey

This study explores the existence of a wage curve for Spain. To quantify this relationship for the Spanish economy, we used individual datafrom the EPF 1990-1991. The results show the presence of a wage curve with an elasticity of -0.13. The availability of very detailed information on wages and unemployment has also shown that less protected labour market groups -young workers, manual workers and building sector workers- have a higher elasticity of wages to local unemployment. These results could be interpreted as a greater facility of firms in these segments to settle wages as a function ofthe unemployment rate

Wage curves for Spain evidence from the family budget survey

This study explores the existence of a wage curve for Spain. To quantify this relationship for the Spanish economy, we used individual datafrom the EPF 1990-1991. The results show the presence of a wage curve with an elasticity of -0.13. The availability of very detailed information on wages and unemployment has also shown that less protected labour market groups -young workers, manual workers and building sector workers- have a higher elasticity of wages to local unemployment. These results could be interpreted as a greater facility of firms in these segments to settle wages as a function ofthe unemployment rate

A Behavioral Account of the Labor Market: The Role of Fairness Concerns

In this paper, we argue that important labor market phenomena can be better understood if one takes (a) the inherent incompleteness and relational nature of most employment contracts and (b) the existence of reference-dependent fairness concerns among a substantial share of the population into account. Theory shows and experiments confirm that, even if fairness concerns were to exert only weak effects in one-shot interactions, repeated interactions greatly magnify the relevance of such concerns on economic outcomes. We also review evidence from laboratory and field experiments examining the role of wages and fairness on effort, derive predictions from our approach for entry-level wages and incumbent workers' wages, confront these predictions with the evidence, and show that reference-dependent fairness concerns may have important consequences for the effects of economic policies such as minimum wage laws.

Les TIC i les transformacions de l'empresa catalana. Informe de recerca II

El projecte de recerca Les tecnologies de la informació i la comunicació i les transformacions de l'empresa catalana va analitzar la relació entre l'estratègia, l'organització i les pràctiques empresarials i els usos de les tecnologies de la informació i la comunicació a l'empresa catalana. A partir d'una enquesta a una mostra representativa a 2.038 empreses catalanes, segmentada per branques d'activitat i per dimensió, aquesta recerca va obtenir evidència concloent del procés de construcció de l'empresa xarxa a Catalunya, com també de la relació entre la inversió i els usos de la innovació digital i el seu impacte favorable sobre la productivitat, els salaris i la competitivitat internacional de les empreses catalanes.

Introduction to the Special Issue

This introduction summarises the main contributions included in the special issue. These papers were discussed (among others) in the special session on «Wages and Regional Labour Markets» organised within the activities of the 51st Congress of the European Association of Regional Science (ERSA) and the 37th conference of the Spanish Regional Science Association held in Barcelona in August 2011. This special issue contains six of the nine papers discussed in the session, plus three additional papers clearly related to this topic that were discussed in other conference sessions or included at a later stage due to their relevance. Moreover, we also decided to include a brief discussion of each paper in order to incorporate other points of view and some additional thoughts on the topic.

Is Transnational Private Regulation Potentially an Effective Means of Promoting Collective Industrial Relations?

This paper asks whether collective industrial relations can be promoted by means other than seeking change in public policy. Recent research points to the increasing significance of transnational private regulation (TPR) in developing economies. There is an emerging consensus that market incentives to improve wages and conditions of work can have a modest positive effect on measurable outcomes like hours of work, and health and safety. However, it appears that TPR has little impact on the capacity of workers to pursue such improvements for themselves via collective action. The paper takes a closer look at the potential of TPR to enhance worker voice and participation. It argues that this potential cannot be properly evaluated without understanding how local actors mobilise the social and political resources that TPR provides. The case studies presented show how different TPR schemes have been used by unions in Africa as a means to pursue the interests of members. The authors found that the scale of the impact of TPR in all of the contexts studied depended almost entirely on the existing capacities and resources of the unions involved. TPR led to the creation of collective industrial relations processes, or helped unions to ensure that certain enterprises participated in existing industrial relations processes, but did virtually nothing to enhance the political and organisational capacity of the unions to influence the outcomes of those processes in terms of wages and conditions of employment. The paper concludes that the potential of TPR to promote the emergence of collective industrial relations systems is very low.

Salários, produtividade e lucros na indústria brasileira, 1945-1978

Wages, productivity and profits in the Brazilian manufacturing industry, 1945-1978. This article investigates the distribution between profits and wages in Brazil's manufacturing industry from 1945 to 1978. First, the article provides yearly series of average real wages and labour productivity, from which labour unit costs and the distribution between profits and wages in the manufacturing industry are estimated. Second, the article addresses the behaviour of wages, labour productivity and industrial income distribution in the context of variable economic, political and institutional conditions which prevailed in post-war Brazil. The results of the quantitative analysis allow us to assess both the trends and the yearly behaviour of the manufacturing income distribution during a key period of the Brazilian economic history.

Wage Policy of Firms: an Empirical Investigation.

This paper analyzes the dynamics of wages and workers' mobility within firms with a hierarchical structure of job levels. The theoretical model proposed by Gibbons and Waldman (1999), that combines the notions of human capital accumulation, job rank assignments based on comparative advantage and learning about workers' abilities, is implemented empirically to measure the importance of these elements in explaining the wage policy of firms. Survey data from the GSOEP (German Socio-Economic Panel) are used to draw conclusions on the common features characterizing the wage policy of firms from a large sample of firms. The GSOEP survey also provides information on the worker's rank within his firm which is usually not available in other surveys. The results are consistent with non-random selection of workers onto the rungs of a job ladder. There is no direct evidence of learning about workers' unobserved abilities but the analysis reveals that unmeasured ability is an important factor driving wage dynamics. Finally, job rank effects remain significant even after controlling for measured and unmeasured characteristics.

Établissement des travailleurs immigrants sélectionnés au Québec : mobilité professionnelle et présence en emploi qualifié au cours des premières années suivant l’arrivée

Les études portant sur l’adéquation entre le niveau de formation des individus et celui requis pour l’emploi occupé se sont peu attardées à la dimension temporelle de cette relation. De plus, peu ont abordé la question chez les immigrants canadiens, et de surcroît chez les travailleurs immigrants sélectionnés du Québec. Une seule étude abordant le sujet sous un angle longitudinal a été recensée et se limite à l’accès des travailleurs qualifiés à un premier emploi correspondant à leur niveau de compétences. Cette thèse cherche à aller au-delà des premières transitions sur le marché du travail et vise à mieux comprendre l’évolution de la relation formation-emploi au fil du temps d’établissement. Plus spécifiquement, l’objectif y est de mieux circonscrire l’évolution de la relation formation-emploi au cours des premières années suivant l’arrivée du migrant, d’en identifier les déterminants, mais également de voir l’impact de cette relation sur d’autres dimensions de la qualité de l’emploi : le statut socioéconomique et le salaire. Afin de mieux comprendre les déterminants de l’occupation d’emplois correspondant à son niveau de compétences et d’emplois pour lesquels l’individu est suréduqué ainsi que leur impact respectif sur le statut d’emploi et le salaire, cette thèse considère l’apport de théories sociologiques et économiques. D’une part, différentes théories s’opposent quant au caractère temporaire ou permanent de la suréducation. Ce faisant, elles soulèvent l’impact potentiel des expériences en emploi passées sur le parcours futur et la nécessité d’une vision longitudinale de l’insertion professionnelle. D’autre part, d’autres approches soulèvent, en plus des déterminants individuels, le rôle du contexte social et institutionnel dans lequel l’individu s’insère. Ces différentes approches trouvent écho dans la perspective empirique du parcours de vie qui permet de considérer l’interrelation entre des facteurs micro, méso et macro sociaux et de se représenter les parcours biographiques au fil du temps. L'Enquête sur les travailleurs sélectionnés (ETS) a rendu possible l'étude des parcours en emploi de cette catégorie d'immigrant sélectionnée en fonction de son potentiel d'insertion à la société québécoise dans la mesure où celle-ci comporte à la fois des données administratives sur la situation prémigratoire des travailleurs immigrants, de même que de l'information datée sur chacun des emplois occupés après la migration. L’analyse a été effectuée en trois temps soit : une description du lien entre le niveau de formation et l’emploi, l’étude des déterminants de la relation formation-emploi et finalement, l’étude des salaires et effet de la relation formation-emploi sur ceux-ci. Chacun de ces trois volets est présenté sous forme d’articles soumis pour publication. Les résultats montrent que la proportion d’individus occupant des emplois correspondant à leur niveau de compétences augmente avec le temps passé dans la société d’accueil. Cependant, la suréducation demeure un phénomène présent chez la catégorie des travailleurs immigrants sélectionnés. À ce titre, les premières expériences en emploi sont déterminantes dans la mesure où elles ont un impact non seulement sur l’évolution de la relation formation-emploi, mais également sur les salaires et les statuts des emplois décrochés par les nouveaux arrivants. La grille de sélection, élément central du processus par lequel un candidat peut devenir immigrant au Québec, à travers les attributs des individus qu’elle retient, contribue aussi à façonner les parcours en emploi. La région de provenance des immigrants distingue également les immigrants entre eux, toutes choses égales par ailleurs. La majorité des groupes sont désavantagés lorsqu’ils sont comparés à leurs compatriotes de l’Europe de l’Ouest et des États-Unis, et ce désavantage perdure au fil des années. Cette thèse a démontré que l’insertion professionnelle et la relation formation-emploi sont des sujets se devant d’être abordés sous un angle longitudinal pour bien saisir la complexité des processus à l’œuvre. Au niveau social, les analyses auront permis de montrer l’importance de se pencher sur les services offerts aux immigrants pour les aider dans leur insertion professionnelle, surtout dans un contexte où des départs à la retraite massifs et des pénuries de main-d'œuvre qualifiée sont à prévoir.

Rights of the Prisoner: An Evolving Jurisprudence

Imprisonment is the most common method of punishment resorted to by almost all legal systems.The new theories of crime causation propounded in the latter half of the nineteenth century gave rise to the feeling that the prisons could be used as appropriate institutions for reforming the offenders. It called for individualisation of punishment.As a result of international movements for humanisation of prisons the judiciary' in tine common law countries started taking active interest in prisoner's treatment.Various studies reveal that much has been done in America to improve the lot of prisoners and to treat them as human beings.The courts there have gone to the extent of saying that there is no iron curtain between a prisoner and the constitution. Most of the rights available to citizens except those which they cannot enjoy due to the conditions of incarceration have also been granted to prisoner.In India also the judiciary has come forward to protect the rights of the prisoners.Maneka Gandhi is a turning point in prisoner's rights.The repeated intervention of courts in prison administration project the view that prisoners have been denied the basic human rights.The High Courts and the Supreme Court of India have been gradually exercising jurisdiction ixl assuming prison justice, including improving the quality of food and amenities, payment of wages and appropriate standards of medical care. Access to courts must be made easier to the aggrieved prisoners.The government should come forward along with some public spirited citizens and voluntary organisations to form a "discharged prisoner“ aid society. The society should exploit opportunities for rehabilitation of prisoners after their release.Most of the prison buildings in the State of Kerala are ill-equipped, ill furnished and without proper ventilation or sanitation and with insufficient water supply arrangements.In India prisoners and prisons today are governed by the old central legislations like Prisons Act l894 Prisoners Act 1900 and the Transfer of Prisoners Act 1950.

Regional Labor Market Disparities

Regionale Arbeitsmärkte unterscheiden sich erheblich hinsichtlich wesentlicher Kennzahlen wie der Arbeitslosenquote, des Lohnniveaus oder der Beschäftigungsentwicklung. Wegen ihrer Persistenz sind diese Unterschiede von hoher Relevanz für die Politik. Die wirtschaftswissenschaftliche Literatur liefert bereits theoretische Modelle für die Analyse regionaler Arbeitsmärkte. In der Regel sind diese Modelle aber nicht dazu geeignet, regionale Arbeitsmarktunterschiede endogen zu erklären. Das bedeutet, dass sich die Unterschiede regionaler Arbeitsmärkte in der Regel nicht aus den Modellzusammenhängen selbst ergeben, sondern „von außen“ eingebracht werden müssen. Die empirische Literatur liefert Hinweise, dass die Unterschiede zwischen regionalen Arbeitsmärkten auf die Höhe der regionalen Arbeitsnachfrage zurückzuführen sind. Die Arbeitsnachfrage wiederum leitet sich aus den Gütermärkten ab: Es hängt von der Entwicklung der regionalen Gütermärkte ab, wie viele Arbeitskräfte benötigt werden. Daraus folgt, dass die Ursachen für Unterschiede regionaler Arbeitsmärkte in den Unterschieden zwischen den regionalen Gütermärkten zu suchen sind. Letztere werden durch die Literatur zur Neuen Ökonomischen Geographie (NÖG) untersucht. Die Literatur zur NÖG erklärt Unterschiede regionaler Gütermärkte, indem sie zentripetale und zentrifugale Kräfte gegenüberstellt. Zentripetale Kräfte sind solche, welche hin zur Agglomeration ökonomischer Aktivität wirken. Im Zentrum dieser Diskussion steht vor allem das Marktpotenzial: Unternehmen siedeln sich bevorzugt an solchen Standorten an, welche nahe an großen Märkten liegen. Erwerbspersonen wiederum bevorzugen solche Regionen, welche ihnen entsprechende Erwerbsaussichten bieten. Beides zusammen bildet einen sich selbst verstärkenden Prozess, der zur Agglomeration ökonomischer Aktivität führt. Dem stehen jedoch zentrifugale Kräfte gegenüber, welche eine gleichmäßigere Verteilung ökonomischer Aktivität bewirken. Diese entstehen beispielsweise durch immobile Produktionsfaktoren oder Ballungskosten wie etwa Umweltverschmutzung, Staus oder hohe Mietpreise. Sind die zentripetalen Kräfte hinreichend stark, so bilden sich Zentren heraus, in denen sich die ökonomische Aktivität konzentriert, während die Peripherie ausdünnt. In welchem Ausmaß dies geschieht, hängt von dem Verhältnis beider Kräfte ab. Üblicherweise konzentriert sich die Literatur zur NÖG auf Unterschiede zwischen regionalen Gütermärkten und geht von der Annahme perfekter Arbeitsmärkte ohne Arbeitslosigkeit aus. Die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede kann die NÖG daher üblicherweise nicht erklären. An dieser Stelle setzt die Dissertation an. Sie erweitert die NÖG um Friktionen auf dem Arbeitsmarkt, um die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede zu erklären. Sie greift dazu auf eine empirische Regelmäßigkeit zurück: Zahlreiche Studien belegen einen negativen Zusammenhang zwischen Lohn und Arbeitslosigkeit. In Regionen, in denen die Arbeitslosigkeit hoch ist, ist das Lohnniveau gering und umgekehrt. Dieser Zusammenhang wird als Lohnkurve bezeichnet. Auf regionaler Ebene lässt sich die Lohnkurve mithilfe der Effizienzlohntheorie erklären, die als theoretische Grundlage in der Dissertation Anwendung findet. Konzentriert sich nun die ökonomische Aktivität aufgrund der zentripetalen Kräfte in einer Region, so ist in diesem Zentrum die Arbeitsnachfrage höher. Damit befindet sich das Zentrum auf einer günstigen Position der Lohnkurve mit geringer Arbeitslosigkeit und hohem Lohnniveau. Umgekehrt findet sich die Peripherie auf einer ungünstigen Position mit hoher Arbeitslosigkeit und geringem Lohnniveau wieder. Allerdings kann sich die Lohnkurve in Abhängigkeit des Agglomerationsgrades verschieben. Das komplexe Zusammenspiel der endogenen Agglomeration mit den Arbeitsmarktfriktionen kann dann unterschiedliche Muster regionaler Arbeitsmarktdisparitäten hervorrufen. Die Dissertation zeigt auf, wie im Zusammenspiel der NÖG mit Effizienzlöhnen regionale Arbeitsmarktdisparitäten hervorgerufen werden. Es werden theoretische Modelle formuliert, die diese Interaktionen erklären und welche die bestehende Literatur durch spezifische Beiträge erweitern. Darüber hinaus werden die zentralen Argumente der Theorie einem empirischen Test unterworfen. Es kann gezeigt werden, dass das zentrale Argument – der positive Effekt des Marktpotentials auf die Arbeitsnachfrage – relevant ist. Außerdem werden Politikimplikationen abgeleitet und der weitere Forschungsbedarf aufgezeigt.