the private wage sector in cote d ivoire homogeneity or heterogeneity one dominant feature of economic development is change in the structure of the economy some sectors expand while others shrink in response to changes in output markets considerable adjustments must take place in factor markets as well development will therefore proceed more speedily when barriers in the factor markets are minimal whether or not barriers in the labor market exist macroeconomic discussions of labor markets usually assume uninhibited flows between sectors 13 similarly a large literature on earnings of wage workers has treated the wage sector as a homogeneous part of the labor market yet if the wage sector is heterogeneous model estimates have no empirical meaning and policy recommendations have no foundation

transfer problem dynamics macroeconomics of the franco prussian war indemnity we study the classic transfer problem of predicting the effects of an international transfer on the terms of trade and the current account a two country model with debt and capital allows for realistic features of historical transfers they follow wartime increases in government spending and are financed partly by borrowing the model is applied to the largest historical transfer the franco prussian war indemnity of 1871 1873 in these three years france transferred to germany an amount equal to 22 percent of a year s gdp when the transfer is combined with measured shocks to fiscal policy and productivity over the period the model provides a very close fit to the historical sample paths of french gdp terms of trade net exports and aggregate consumption this makes a strong case for the dynamic general equilibrium approach to studying the transfer problem more generally our results provide striking evidence of the importance of international capital markets in the nineteenth century

disability employment and earnings an examination of heterogeneity this article uses information from an ad hoc module on disability in the 2002 uk labour force survey to identify the heterogeneity that exists within the disabled group and examine its impact on labour market outcomes after controlling for a range of personal characteristics the type severity duration and cause of the disability are found to be important determinants of employment but there is less evidence to support the influence of within group heterogeneity on earnings

estimating the employment effects of wage discrimination if labor supply curves are not perfectly inelastic wage discrimination induces some minority workers to leave the labor force studies of discrimination that focus only on wage differentials overlook these disincentive effects on minority employment this article introduces a method of estimating the employment effects of wage discrimination and applies it to data on men and women from the 1984 survey of income and program participation the authors find that wage discrimination against women caused a net loss of over four million jobs supporting gary becker s contention that discriminatory employers use labor inefficiently copyright 1992 by mit press

international transfers the relative price of non traded goods and the current account this paper considers the role of the relative price of non traded goods and the current account in the adjustment of a small open economy to the receipt of an international transfer the paper shows that the economy s macroeconomic adjustment to the transfer depends upon the relative capital intensities of the traded and non traded sectors of the economy as well as on the duration of the transfer the paper provides a new interpretation of france s current account surplus in the 1870s that accompanied the payment of reparations to germany following the franco prussian war and of germany s trade deficit in the 1920s that accompanied reparations payments associated with the first world war

a gravity model analysis of international migration to north america this study examines the influence of political economic and demographic factors on the size and composition of migration flows to north america a modified gravity model is specified and adjusted to include immigration regulations and characteristics specific to the origin and destination countries for empirical test of the model the time period of study is from 1976 1986 and 70 countries are covered for a total of 1540 observations of migration flows to canada and the usa the results reveal that the population of origin countries and the income of destination countries are two major determinants of migration to north america high population areas of asia and latin america provided a large share of the immigrants domestic restrictions on political and civil freedom in origin countries are found to significantly impair migration to north america

an analysis of turkey s accession to the european union we build a two country dynamic general equilibrium model to study whether european citizens would bene t from the eventual accession of turkey to the european union eu the results of the simulations show that turkey s accession is welfare enhancing for europeans provided that turkish total factor productivity tfp increases suf ciently after enlargement in the benchmark model with no capital mobility the europeans are better off if the turkish tfp increase bridges more than 21 of the initial tfp gap between turkey and the eu this gure increases to 33 when capital mobility is introduced

closing large open economy models abstract a large class of international business cycle models admits multiple locally isolated deterministic steady states if the elasticity of substitution between traded goods is sufficiently low i explore the conditions under which such multiplicity occurs and characterize the dynamic properties in the neighborhood of each steady state models with standard incomplete markets portfolio costs a debt elastic interest rate or an overlapping generations framework allow for multiple steady states if the model features multiple steady states under financial autarchy if the excess demand for the foreign traded good is increasing in the good s own price in a given steady state the equilibrium dynamics around this steady state are unbounded otherwise the dynamics are bounded and unique by contrast with uzawa type preferences the steady state is always unique and the associated equilibrium dynamics are always bounded and unique the same results obtain under complete markets

health a source of bias in labor supply models the inconsistency of the labor supply estimates using nonexperimental data has led to the costly income maintenance experiments that have taken place in various parts of the country in addition to being costly the analyses of experimental data also have their share of econometric problems 1 both experimental and nonexperimental studies face the problems of sample selection model specification and variable measurement in order to determine what effects the variables of interest have on labor supply all relevant factors must be included one of these control variables namely health is often included in a form which results in biased estimates in this paper we hope to show that the analysis of experimental and nonexperimental labor supply data must carefully address the health variable problem before meaningful estimates can be obtained in general three treatments emerge in the literature no control for health is used a binary variable which we shall call a disability variable is included in the model as an exogenous variable or the disability variable is used as a partitioning criterion to obtain a sample of able bodied men or women the disability variable is often the response to the question does your health prevent you from working altogether or does your health limit the kind or amount of work you could do this study will examine the bias created by each of these approaches and will suggest a method of measurement for health which does not produce biased estimates 2 health and labor supply

disability and self employment evidence for the uk this article examines the self employment decision for disabled and nondisabled workers in the uk using labour force survey lfs data it is found that self employment may provide an important means by which those with work limiting disabilities can accommodate their impairment

intertemporal dimensions of international economic adjustment evidence from the franco prussian war indemnity few topics in international economics have generated the intense and persistent interest that surrounds analysis of the transfer problem in large part this reflects continuing fascination with the political and economic consequences of the victorious allies attempts to extract war reparations from germany after the first world war for economists interest in this episode is surely increased by the clear analytical parallel between international transfer payments and other payments obligations and in particular international debt service see e g arminio fraga 1986 more generally the economics of effecting an international transfer are immediately relevant for a broad range of questions in international economics including in particular the economics of devaluation and by extension the economics of alternative exchange rate regimes careful study of the macroeconomic consequences of episodes in which transfers were made would therefore provide important evidence on a much wider variety of issues than war reparations alone the problem is that few such episodes exist the world war i reparations are of little use here because transfers were not in any real sense made from germany to the allies rather the reverse the lending booms studied by frank w taussig jacob viner and others are of more use but are suspect because the lending was clearly associated with a goods market disturbance in the recipient countries there is thus an element of endogeneity in these transfers which makes it unclear whether observed economic fluctuations during the period of transfer are due to the transfer itself or to the goods market disturbance that induced the international flow of resources this paper studies some aspects of one of the few major economically exogenous international transfers in modern economic history the war indemnity that followed the franco prussian war of 1870 1871 this immense indemnity was demanded by and from an economy that was relatively unscathed by the war itself and the transfer was actually paid in this and other respects the franco prussian reparations seem to provide radically different economic and political lessons than those that have been drawn from the 1920 s 1 the focus here is on some intertemporal dimensions of international transfers these were somewhat neglected by the static theoretical discussions that eventually sorted out theoretical aspects of the keynes ohlin debate though contemporary analysis never lost sight of their importance see e g james w angell 1930

estimating wage discrimination in the labor market if labor supply curves are not perfectly inelastic wage discrimination induces some minority workers to leave the labor force studies of discrimination that focus only on wage differentials overlook these disincentive effects on minority employment

employment and education discrimination against disabled people in cape verde this article assesses the employment and school enrolment gaps between disabled and nondisabled persons using the last cape verdean census the unexplained part of these gaps accounts for most of them whatever the age group considered furthermore differences in age structures between disabled and nondisabled persons have almost no effect on these gaps taking into account potential misclassification errors in the disability variable seems to change only marginally these results these findings thus suggest that there is scope for programs to better target and promote employment and education of the disabled in cape verde

changes in wage discrimination against people with disabilities 1984 93 a group of health impaired workers who self report in the survey of income and program participation that their productivity is not affected by their impairment is used to separately measure the effects of discrimination from the effects of poor health on earnings in 1984 and 1993 the results indicate that in 1984 only 3 7 percentage points of the earnings gap is due to discrimination and the amount of discrimination did not decrease by 1993 although discrimination did not change over the 1984 to 1993 period the negative effects of poor health on the earnings of people with disabilities fell substantially

the labor market effects of disability discrimination laws we present new evidence on the effects of disability discrimination laws based on variation induced by state level antidiscrimination measures passed prior to the americans with disabilities act ada the evidence expands upon other research that focuses solely on the impact of the ada by using a quasi experimental framework that generates treatment and comparison groups we find that disability discrimination laws are associated with lower relative earnings of the disabled with slightly lower disabled relative labor force participation rates but are not associated with lower relative employment rates for the disabled once we control for preexisting employment trends among the disabled

labour market discrimination are there significant differences between the various decomposition procedures economists have usually called the proportion of the average wage gap between two groups which could not be explained by individual characteristics discrimination recently several theories have suggested that labour market discrimination on the one hand lowers the wages of the minority group and on the other leads to higher pay for the majority group in a recent survey of the various methods used to decompose the overall wage differential between two groups oaxaca and ransom compared five approaches in the contexts of race and gender discrimination this paper checks whether there are significant differences between the various decomposition procedures which have appeared in the literature the tests are based on bootstrap techniques

the effect of disability on labour market outcomes in germany in this article we analyse the individual effects of becoming disabled on key aspects of labour market outcomes in germany the german socio economic panel 1984 2002 collects socio economic and health data this data is organized such that the potential problems for such an estimation that may arise from disability not being a random event are considerably reduced using matching methods we find a reduction of individual employment chances of about 9 to 13 the level depending on the degree of disability we find no statistically significant evidence for a reduction in income or an increase in unemployment due to disability we interpret these findings as an indication that the german social security systems appear to successfully mitigate or at least reduce the economic hardship that comes with the event of disability

the generalized theory of transfers and welfare bilateral transfers in a multilateral world paul samuelson s 1952 1954 classic papers on the transfer problem addressed two separate analytical issues the positive effect of a transfer on the terms of trade and the welfare effect of the transfer on the donor and the recipient since then a considerable body of literature has grown up on the positive analysis while samuelson 1954 himself had extended the 2 x 2 x 2 free trade analysis to allow for tariffs and transport costs subsequent writers have analyzed other extensions of the model for example to allow for nontraded goods as with leisure in samuelson 1971 or general nontraded goods in john chipman 1974 and ronald jones 1970 1975 remarkably however the welfare analysis of transfers has not paralleled these developments since wassily leontief 1936 produced an example of immiserizing transfer from abroad and samuelson 1947 argued that the example required market instability the proposition that has monopolized attention has been that a transfer in the conventional 2 x 2 x 2 model in its free trade version cannot immiserize the recipient or enrich the donor as long as world markets are stable in the walras sense interestingly samuelson 1954 who did extend the positive analysis to include tariffs did not go on to ask whether immiserization of the transfer recipient and hence symmetrically enrichment of the donor in a two country model could now arise consistent with market stability recently the welfare analysis of transfers has been extended in two different directions both apparently unconnected and both yielding the conclusion that transfers from abroad can be immiserizing and that the donor may improve its welfare despite market stability one route to this conclusion has been the introduction of a third economic agent or country that is outside of the transfer process in the appendix of his 1960 paper analyzing the interaction between trade policy and income distribution harry johnson discussed the possibility of welfareparadoxical redistribution between two factor income classes capital and labor in an open economy thereby providing what can be interpreted as a treatment of the threeagent transfer problem for the case in which donor and recipient are both completely specialized in the ownership of a single different factor an independent analysis of the three agent transfer problem using a restrictive model with given endowments of goods and fixed coefficients in consumption was also undertaken in an important paper by david gale 1974 2 brecher and bhagwati bhagwati department of economics columbia university new york ny 10027 brecher department of economics carleton university ottawa on kis 5b6 hatta department of political economy the johns hopkins university baltimore md 21218 we thank the national science foundation grant no 524718 for partial financial support of the research underlying this paper the paper was written when brecher and hatta were visiting columbia university 1981 82 gratefully acknowledged are helpful comments and suggestions from john chipman avinash dixit jacques dreze robert feenstra jacob frenkel ronald jones murray kemp andreu mas colell michael mussa john riley lars svensson and robert willig from anonymous referees and from seminar participants at berkeley harvard minnesota rochester chicago and the university of california los angeles after the present paper was submitted for publication and following its presentation at rochester our attention was drawn to this appendix which was noticed by a student of ronald jones subsequently we learned from makoto yano that motoshige itoh had pointed out an important related paper by ryuotaro komiya and t shizuki 1967 whose condition 11 for the johnson case anticipated our equation 12 below we are grateful for having both of these references brought to our attention 2 gale constructs an example in which the donor is enriched along with the recipient furthermore this immediately implies that a reverse transfer will immis

native immigrant wage differentials and occupational segregation in the greek labour market this article explores native immigrant wage differentials in the greek labour market data from the most recent greek household budget survey 2004 05 were employed four alternative occupational categories were considered and occupational choice was explicitly modelled controlling for occupational selectivity occupation specific wage regressions for representative samples of employed native and immigrant workers were estimated and an augmented decomposition technique was utilized to analyse inter and intra occupation wage differentials the obtained results demonstrate that roughly 48 of the average wage differential cannot be explained by differences in observed characteristics and that the larger component of this unexplained part is due to asymmetrical occupational access by native and immigrant workers

a meta analysis of the international gender wage gap abstract since the early 1970s a number of authors have calculated gender wage differentials between women and men of equal productivity this meta study provides a new quantitative review of this vast amount of empirical literature on gender wage differentials as it concerns not only differences in methodology data and time periods but also different countries we place particular emphasis on a proper consideration of the quality of the underlying study which is done by a weighting with quality indicators the results show that data restrictions i e the limitation of the analysis to new entrants never marrieds or one narrow occupation only have the biggest impact on the resulting gender wage gap moreover we are able to show what effect a misspecification of the underlying wage equation like the frequent use of potential experience has on the calculated gender wage gap over time raw wage differentials worldwide have fallen substantially however most of this decrease is due to better labor market endowments of females

wage discrimination occupational segregation and visible minorities in canada the earnings gap between each of whites asians and blacks is decomposed into the effects on earnings of productivity related characteristics wage discrimination and occupational segregation unlike previous canadian studies this paper analyses the relative economic position of both immigrant and native born visible minorities and explicitly incorporates the effect of discrimination in occupational attainment on the earnings gap the results indicate that policies aimed at increasing the ethnic representation across occupational categories would be effective only for black men anti discrimination legislation aimed at decreasing the earnings gap between visible minority and white women should have a dual focus they should aim at reducing the inter occupational wage discrimination they should provide training programs to extend the career ladders confronting ethnic minority women

evidence on the validity of cross sectional and longitudinal labor market data this article investigates error properties of survey reports of labor market variables we use the panel study of income dynamics psid validation study a two wave panel survey of workers employed by a large firm that shared its detailed payroll records individuals reports of annual earnings are fairly accurate errors are negatively related to true earnings reducing bias due to measurement error when earnings are used as an independent variable biases are moderately larger for changes in earnings earnings per hour are less reliably reported than annual earnings biases in estimating earnings functions are relatively small but those in labor supply functions may be important

the impact of unionism on fringe benefit coverage abstract the estimated effect of unionism on fringe benefit coverage is shown to be relatively robust to econometric method the atypical characteristics of unionized workers especially their larger employer size higher wages and longer worker week explain between one and two thirds of their higher fringe benefit coverage

the economic well being of the disabled 1962 84 this paper focuses on the disabled working age population and tracks the changes in their labor market performance their receipt of public income transfers and their economic well being over the 1962 1984 period the changes over time in these indicators are compared with those of the nondisabled population the paper concludes that from the 1960s until the mid 1970s the disabled improved their performance in the labor market their real earnings rose both absolutely and relatively the economic well being of disabled males also increased rapidly during this period however in the last half of the 1970s the earnings of the disabled population fell rapidly although the rapid growth of transfer income cushioned this fall until the late 1970s then and especially after 1980 the controversial retrenchment in disability benefit programs struck and the well being of the disabled fell further

wage discrimination against handicapped men and women the extent of discrimination against handicapped men and women is estimated in this paper observed wage differentials are corrected for selectivity bias the results indicate that almost one third of the wage differential for men and close to one half for women can be attributed to discrimination interestingly handicapped women are also subjected to sex discrimination

immigrants minorities and labor market competition this paper investigates the extent of labor market competition among immigrants minorities and the native population an analysis of 1980 u s census data reveals that immigrants tend to be substitutes for some labor market groups and complements for others the effects of shifts in immigrant supply on the earnings of native born men are however very small on the other hand increases in the supply of immigrants do have a sizable impact on the earnings of immigrants themselves an increase of 10 percent in the supply of immigrants for example reduces the immigrant wage by about 10 percent

episodes of war and peace in an estimated open economy model we analyze the effects of world wars on the macroeconomic dynamics of the u s france germany and the uk by means of an estimated open economy model the model allows wars to affect the economy through capital depreciation sovereign default a military draft household preferences and spillovers on other exogenous processes productivity investment trade policy variables if the bulk of fluctuations during war episodes can be explained by the rise in government spending in the u s other factors are crucial in other countries we also discuss the size and state dependence of public spending multipliers and a counterfactual welfare exercise

human capital discrimination and the gender wage gap in bangladesh summary this paper investigates changes in the gender wage gap in bangladesh over the period 1999 2009 the gap in average wages between men and women decreased by 31 over this period this paper shows that a key driver of this change was an improvement in female educational qualifications it also demonstrates that the gender wage gap across the wage distribution narrowed much more at the lower end of the wage distribution than at the upper end it attributes this mainly to a decline in discrimination against women implications for policies aimed at more equal access to education and enforcement of equal pay legislation in bangladesh are also identified

the gap between male and female pay in the spanish tourism industry abstract this paper analyzes wage differentials between male and female workers in the spanish tourism industry using a large administratively matched employer employee data set obtained from a representative sample of companies this allows us to control for unobserved firm specific factors likely to affect the magnitude of the gender wage gap our findings indicate that male workers earn on average 6 7 higher monthly wages than their socially comparable female counterparts in particular the type of contract held the qualifications required for the job and the specific sub sector of employment are very important variables in explaining this gender wage difference we also find that only around 12 of the mean wage difference in the tourism industry cannot be explained by differences in observable characteristics which is well below the average for the rest of the industries in spain 87 our interpretation is that minimum wage legislation provides a particularly effective protection to women in the tourism industry which is characterized by a large number of low wage earners

is there employment discrimination against the disabled abstract using differences in the work limiting nature of a disability employment discrimination against the disabled is separated from the unobserved effect of disability on productivity the uk evidence suggests unobserved productivity differences are an important influence on the employment gap

impacts of disability on poverty quasi experimental evidence from landmine amputees in cambodia abstract this paper examines the impacts of disability on poverty in rural cambodia i combine a natural experiment and spatial blocking first i focus on amputation among adults due to landmines which is free from measurement errors and the onset of which is an exogenous shock second i conduct an original survey stratified by disability status within villages where people have shared the same local vulnerability to landmine accidents this research design enables matching analysis within small geographic areas treating demographic factors such as household formation and fertility as endogenous this quasi experimental study finds that amputation greatly reduces consumption and income but not subjective well being i e adaptation increasing poverty and augmenting its magnitude disability triggers a vicious circle of reduced work low earnings and limited accumulation of productive assets and social capital this work cum asset channel leads to adverse intergenerational effects on child schooling and child labor

the employer size wage gap evidence for britain university of edinburgh and university of sussexfinal version received 5 may 1992 this paper presents estimates for the employer plant size wage gap for britain using anordered probit model selectivity corrected wage equations are estimated for three plant sizecategories in a comparison between plants with more than 500 workers and those with lessthan 100 a wage gap estimate of over 17 per cent is detected the wage effects of unionizationin plants with more than 500 workers is reported as insignificant in contrast to evidenceprovided by idson and feaster 1990 for the united states no evidence of non randomsorting of workers across plant size is detected

confucius institute s effects on international travel to china do cultural difference or institutional quality matter abstractthis article uses a panel data of china s inbound tourist flows from 2005 to 2015 to investigate confucius institute ci s influence on china s tourism we find that ci as a comprehensive platform for china s foreign cultural exchange has a significant positive effect on china s tourist flows the effects of ci on china s inbound tourism are transmitted through bridging cultural gaps and promoting chinese language which reduces psychic distance and transaction costs ci also stimulates china s inbound tourist flows via reducing information asymmetry caused by different levels of institutional quality interestingly we find that the heterogeneous effects of ci on china s inbound tourism depend on institutional quality and the effects of ci to boost china s tourists are more prominent in departure countries with larger cultural difference

wage determination of registered nurses in proprietary and nonprofit nursing homes this study explores why registered nurses employed in nonprofit nursing homes earn higher wages than those employed in proprietary facilities previous studies have explained this finding in a property rights context where higher wages were posited to result from the weaker incentives for cost minimization accompanying nonprofit status this paper tests an alternative explanation of sectoral wage differences which is predicated on the reason for the coexistence offor profit and nonprofit firms in a given industry informational constraints concerning the quality of care are posited to cause the long term health care market to fail to provide care at the upper levels of a quality of care continuum nonprofits are viewed as a response to this form of market failure acting to fulfill customers demand for higher quality and higher cost long term care with attendant demand for higher quality nurses than in for profit homes both the observed sectoral pattern in selectivity and wage decompositions based on selectivity corrected wage regressions call into question the property right explanation yet are consistent with an asymmetric information explanation

asymmetric labor market reforms effects on wage growth and conversion probability of fixed term contracts the authors investigate the impact of a change in employment protection laws in portugal that increased the maximum legal duration of fixed term contracts they find that this reform led to a reduction in the probability that a worker on a fixed term contract would be converted to a permanent contract in addition those workers who had their contracts converted experienced a significantly higher hourly wage growth at the time of conversion and faced a lower reduction in wage growth during the years in which the changed legislation was in force consequently the implementation of this law led to a 27 increase in the wage growth differential between the two contracts the findings are based on an endogenous regime switching model using rich administrative linked employer employee data

financial globalization and real regionalization over the period 1972 1986 the correlations of gdp employment and investment between the united states and an aggregate of europe canada and japan were respectively 0 76 0 66 and 0 63 for the period 1986 to 2000 the same correlations were much lower 0 26 0 03 and 0 07 real regionalization at the same time u s international asset trade has significantly increased for example between 1972 and 1999 united states gross fdi and equity assets in the same group of countries rose from 4 to 23 percent of the u s capital stock financial globalization we argue that these two trends are intimately related we document that the correlation of real shocks between the u s and the rest of the world has declined we then present a model in which international financial market integration occurs endogenously in response to less correlated shocks financial integration further reduces the international correlations in gdp and factor supplies we find that both less correlated shocks and endogenous financial market development are needed to account for all the changes in the international business cycle

measuring the effect of disability on labor force participation this paper estimates the effect of disability on labor force participation by using symptoms or diseases as instruments in a simultaneous equations model of endogenous reported disability and labor force participation the results show that each measure of disability explains a significant amount of variation in labor force participation though the two are not perfect substitutes there is only weak evidence of endogeneity of the disability variables for cases where there is evidence of endogeneity the bias it causes has the opposite effect of that hypothesized in the literatute i e stress causes health to deteriorate with labor force participation furthermore it has only insignificant effects on the coefficients for other variables

health and labor market performance the case of diabetes technological innovation has reduced the effect of diabetes diabetic behavioral modification in the face and expectation of medical improvement should lead to improved labor market outcomes this article uses three cross sectional data sets from 1976 1989 and 1992 to document improvements in diabetic labor market performance women diabetics have significantly increased their labor force participation while male diabetics have slightly reduced their participation relative to nondiabetics

dynamics of the trade balance and the terms of trade the j curve the authors provide a theoretical interpretation of two features of international data the countercyclical movements in net exports and the tendency for the trade balance to be negatively correlated with current and future movements in terms of trade but positively correlated with past movements they document the same properties in a two country stochastic growth model in which trade fluctuations reflect in large part the dynamics of capital formation the authors find that their general equilibrium perspective is essential the relation between the trade balance and the terms of trade depends critically on the source of fluctuations copyright 1994 by american economic association

estimating the gravity model without gravity using panel data this article examines the effects of zero trade on the estimation of the gravity model using both simulated and real data with a panel structure which is different from the more conventional cross sectional structure we begin by showing that the usual log linear estimation method can result in highly deceptive inference when some observations are zero as an alternative approach we suggest using the poisson fixed effects estimator this approach eliminates the problems of zero trade controls for heterogeneity across countries and is shown to perform well in small samples

a gravity model of immigration this paper develops a gravity model of immigration tests of the model using panel data for 16 oecd countries for 1991 2000 confirm the model s high explanatory power and examples illustrate its usefulness for testing other hypothesized determinants of immigration

labor market discrimination against men with disabilities in the year of the ada the americans with disabilities act ada provides civil rights protections to persons with disabilities but the debate that preceded passage of the act was not based on empirical estimates that could be used to measure its performance this article estimates the extent of wage discrimination against men with disabilities in 1990 providing a reference that can be used to evaluate the impact of the ada the results show large productivity standardized wage differentials between disabled and nondisabled men that are weakly correlated with the strength of prejudice against different impairments physical limitations explain part but not all of the wage differentials the results also show that low employment rates are a more serious problem than wage discrimination for workers with disabilities provide civil rights protections to persons with disabilities the act s supporters promised that it would increase the employment and wages of persons with disabilities and reduce their dependency on public programs the promises were not based on empirical estimates of discrimination and there is no empirical base against which to compare the promises to the performance of the ada this article estimates the extent of wage discrimination against men with disabilities in 1990 providing a reference that can be used to evaluate the impact of the act the ada does not grant a right to employment to all persons with disabilities it requires that persons with disabilities be able to perform the jobs they seek subject to reasonable accommodations by employers this article therefore considers men who are able to work even though their health limits the amount or kind of work they can perform the ada s provisions assume that low wages and low employment rates for persons with disabilities are the result of discrimination caused by prejudice prejudice against persons with disabilities is well documented but so are the limiting effects of physical impairments on workplace productivity hahn 1987 margolis and shapiro 1987 clogston 1990 the core of the debate concerning the value of the ada is whether the poor labor market outcomes of persons with disabilities are the result of discrimination or the limiting effects of health con

the sensitivity of an empirical model of married women s hours of work to economic and statistical assumptions this study undertakes a systematic analysis of several theoretic and statistical assumption s used in many empirical models of female labor supply using a singl e data set psid 1975 labor supply data the author is able to replic ate most of the range of estimated income and substitution effects fo und in previous studies in this field he undertakes extensive specif ication tests and finds that most of this range should be rejected du e to statistical and model misspecifications the two most important assumptions appear to be the tobit assumption used to control for sel f selection into the labor force and exogeneity assumptions on the wi fe s wage rate and her labor market experience copyright 1987 by the econometric society

the impact of work limiting disabilities on earnings and income mobility this article uses the 1968 2007 waves of the panel study of income dynamics psid to examine how work limiting disabilities influence the intragenerational earnings and income mobility of individuals the results show that work limiting disabilities increase the probability of downward mobility for several years after onset furthermore the probability of being in the bottom portions of the distributions increases significantly not only during the year of onset but also for at least 10 years afterwards these results are more pronounced for those individuals suffering from a disability that is more chronic or severe in nature income from spousal earnings and government transfer payments offers some protection against disability s adverse effect with more protection being provided to those who are more chronically disabled

health and wage a simultaneous equation model with multiple discrete indicators in this article we propose all econometric approach for estimating the simultaneouls effects of health and wages in a structural equations framework in the theoretical works of grossmana 1972a 1972b health is viewed as anl elldogen1oulsly determined capital stock the demand for health should rise with the wage rate as the rate of return to health investment increases with wage onl the other hand better health should raise market productivity and hence wages since health capital is an abstract theoretical concept it can hardly be measured quantitatively however most population surveys include various health indicators these indicators are usually discrete variables in the empirical work of grossman and benham 1974 these qualitative indicators are treated as continuous variables and two stage least squares estimation techniques are used this specification raises various econometric problems see e g goldberger 1964 pp 248 255 domencich and mcfadden 1975 and nerlove and press 1973 a satisfactory specification should take into account the discrete nature of the indicators our specification generalizes the dummy variables simultaneous equations system of heckman 1978 the measurement models of joreskog and goldberger 1975 and is closely related to the models of muthe n 1976 1979 muthen studies full information maximum likelihood procedures for estimation except for very simple cases this does not generally yield feasible or tractable procedures in this article we introduce a tractable procedure for statistical estimation and testing this specification and the estimation procedure is then applied to study the joint dependence of health and wages another departure of our approach from others is that we will test and correct the possible incompatibility of the various health capital indicators in the population surveys one may have subjective health indicators such as self evaluation of health which may reflect different populations perception of health we propose a statistical procedure for testing measurement compatibility and if required for correcting this problem this article is divided into two parts initially we describe the model specification estimation and statistical tests in a general simultaneous equation model with multiple discrete indicators in the second part of the paper we consider specification of a simultaneous equation model for health and wages the model

disentangling the effect of arthritis on earnings a simultaneous estimate of wage rates and hours worked poor health affects both wage rates and hours of work here we develop a procedure for examining the separate impact of a specific chronic disease arthritis on wages and hours worked and then translate these results into earnings our methodology provides a consistent approach for measuring how a specific chronic disease affects total earnings as well as its component parts we find that arthritis affects wage rates and hours worked differently and the pattern of these effects differs considerably between men and women

the longitudinal structure of earnings losses among work limited disabled workers this paper asks what are the dynamic effects of disability on earnings unlike most of the previous literature it uses panel data and fixed effects methods are used to assess how the earnings of disabled workers depart from expected levels over many years before and after the date of onset of their disability the paper also examines how worker characteristics affect earnings losses from disability with particular attention paid to the age at which the person suffers onset disabled men are found to experience sharp drops in earnings that predate the measured date of onset earnings recover rapidly soon after onset with much of the immediate reduction made up in the first two post onset years a modest downward trendfollows resulting in significant long term losses in expected annual earnings of about 12 percent per year being older at onset nonwhite more chronically disabled and less educated cause the losses from disability to be larger and the recovery smaller a large portion of these differences across groups appear to derive from industry affiliation after onset the paper argues the facts are all consistent with a simple human capital explanation of the disability process

work limiting health earnings and employment an analysis with sipp data abstractthis study examines the role of work limiting health conditions on employed people s earnings employment status and working hours and distinguishes between the different degree and sever

gender differences in labor market effects of alcoholism little is known about the role of specific health problems in affecting labor market productivity even less is known about gender differences in the labor market effects of such health problems current knowledge of health effects is based largely on samples composed exclusively of men a common practice in both economics and health research in the latter case even a congressional mandate to incorporate females in study samples is reputed to have had little effect patricia schroeder 1990 in this study we attempt to determine the structure of gender differences in labor market responses to alcoholism we use a relatively new data source that allows such comparisons by gender in a large community based sample previous studies have established that there are significant gender differences in labor market behavior differences in prevalence rates of alcoholism by gender are also well established it is estimated that 3 percent of females are currently suffering from alcoholism and twice that many have exhibited symptoms at some time for males the numbers are 10 and 20 percent respectively there is some medical evidence to indicate that physiologically women and men respond differently to alcohol for example a recent study suggests that women have greater vulnerability to the acute and chronic health conditions associated with alcoholism mario frezza et al 1990

the endogeneity of union status an empirical test an unsettled issue in the literature relating to the relative wage effect of unions is the appropriate treatment of union status in a wage determination model in the context of a three equation model determining union membership and union and nonunion sector wage rates this paper presents an instrumental variables iv procedure for estimating the parameters of the wage equations and a test of the exogeneity of union status using the hausman specification test an advantage of our iv procedure in comparison to the widely used inverse mill s ratio procedure is that our procedure is a distribution free estimator whereas the inverse mill s ratio estimator hinges in the assumption that the error term of the choice equation is normally distributed using data for a sample of middle aged white workers we estimate the parameters of the union and nonunion wage equations with both procedures on the key question of the endogeneity of union status the hausman test decisively rejects the null hypothesis of exo

labor market discrimination against hispanic and black men h ispanic american men have lower average wage rates than white non hispanics in 1975 the average white non hispanic male wage earner in the united states earned 5 97 an hour mexican men earned 4 31 72 as much as white non hispanics puerto rican men earned 4 52 76 as much and cuban men earned 5 33 89 as much as white non hispanics by way of comparison black men s average wages in 1975 were 4 65 78 of the white male wage several possible reasons for the hispanics lower wages come to mind among them are age and education geographic location immigration language difficulties and discrimination for example as shown in table 1 mexicans and puerto ricans are younger on average than the white non hispanic population and earnings tend to rise with age hispanics have lower average levels of education than white non hispanics and wages are positively associated with education many mexican americans live in the southwest where prices are relatively low moreover hispanics are more likely to be recent immigrants and to lack fluency in english than white non hispanics and so to be at a disadvantage in the labor market in addition there is a widespread belief that hispanics suffer from employment discrimination and cannot obtain the wages that their human capital would command if they were non hispanic whites how much of the wage differentials described above are due to each of these factors and to other inter group differences in wage related characteristics in particular how much impact does labor market discrimination have on the average hispanic man s wage and how does this compare with discrimination against blacks this paper provides answers to these questions a few other efforts have been made to analyze the relative earnings of hispanic and white nonhispanic men using 1960 and 1970 census data fogel 1966 poston and alvirez 1973 poston alvirez and tienda 1976 long 1977 and gwartney and long 1978 we use more recent data from the 1976 survey of income and education this data set enables us to measure wage rates more accurately and to specify the wage function more completely than does the census unlike previous analysts in estimating the wage function we take account of possible selectivity bias due to the distinction between average wage offers and average observed wages thus we hope to obtain a more accurate and up to date measure of labor market discrimination against hispanic men section ii explains the method used to separate the minority white non hispanic wage differential into the portions due to differences in average characteristics and the portion due to differences in unobserved factors and discrimination taking into account the possibility of selectivity bias in the observed wage sample section iii describes the data used in the study and the specification of the wage equation the breakdown of the observed wage differentials into components due to differences in participation in the wage and salary sector local price levels average characteristics and discrimination are presented in section iv section v summarizes our findings and discusses their implications for efforts to improve the economic situation of hispanics in the united states

the effect of unions on the employment of blacks hispanics and women to investigate whether unions have helped or hindered the employment prospects of minorities and women the author analyzes data on 1 273 california manufacturing plants for the period 1974 80 the

disability gender and the labour market in wales jones m k latreille p l and sloane p j 2006 disability gender and the labour market in wales regional studies 40 823 845 wales exhibits high rates of disability and inactivity and a higher incidence of mental health problems than other parts of britain using data from the welsh local labour force survey 2001 the results indicate that the low participation rate of the disabled in wales is partly attributable to their having fewer qualifications marginal effects suggest education could be a potent remedy for improving their labour market status in terms of the pay differential between disabled and non disabled individuals it would appear that disabled women in wales suffer disproportionately to disabled men only in the case of women is there evidence consistent with the presence of discrimination but this estimate is relatively small jones m k latreille p l et sloane p j 2006 l invalidite le genre et le marche du travail au pays de galles regional studies 40 823 845 le pa

re examining the models used to estimate disability related wage discrimination we examine how differences in model specifications and econometric methods affect unexplained wage differentials between workers with and without physical disabilities where the unexplained differentials are estimates of the potential effects of disability related wage discrimination we apply an enhanced decomposition method neuman and oaxaca 2004 to selectivity corrected wage equations to estimate potential discrimination effects the decomposition separates observed wage differentials into a part explained by differences in characteristics that affect productivity and the decision to work and an unexplained part potentially attributed to discrimination in addition to the functional limitation variables used to control for the effects of disability on productivity we add measures of physical job demands and interaction effects between functional limitations and job demands to the wage models to examine how estimates of potential discrimination change the interaction terms measure the extent to

disability and the labour market an analysis of british males this paper attempts using data from the british labour force survey 1996 to examine to what extent differences in labour market outcomes between able bodied and disabled men may be attributed to differences in endowments of human capital and associated productivity differences both labour force participation and selectivity corrected human capital equations are estimated and decomposition techniques applied to them using the methodology of baldwin and johnson baldwin m johnson w g 1994 labor market discrimination against men with disabilities journal of human resources xxix 1 winter 1 19 the employment effects of wage discrimination against the disabled are also estimated evidence of both substantial wage and participation rate differences between able bodied and disabled men are found which have implications for the operation of the 1995 disability discrimination act

interpreting wage gaps of disabled men the roles of productivity and of discrimination using the uk labour force survey we study wage gaps for disabled men after the introduction of the disability discrimination act we estimate wage gaps at the mean and at different quantiles of the wage distribution and decompose them into a part explained by differences in workers and job characteristics a part that can be ascribed to health related reduced productivity and a residual part the large original wage gaps reduce substantially when we control for differences in education and occupation although significant residuals remain however when we isolate productivity differences between disabled and nondisabled workers the residual wage gap becomes insignificant in most cases

job search and immigrant assimilation an earnings frontier approach this study examines labor market assimilation by measuring the information utilized by immigrants during job search assimilation is assumed to occur whenever such information increases with length of residence in the united states and repeated job searches the authors assert that information utilized during job search reduces differentials between actual and potential maximum attainable earnings coauthors are henry w herzog jr richard a hofler and alan m schlottmann copyright 1992 by mit press

gender differences in wage losses from impairments estimates from the survey of income and program participation this article develops a model of the relationships among functional impairments work disability employment participation and wage offers the model is estimated separately for males and females with data from the 1984 survey of income and program participation using estimates of disability and wage equations we rank 25 functional impairments by severity of disability and estimate the wage penalty associated with each impairment the results show that limitations to mobility and strength are relatively more disabling for males than for females while the opposite is true for limitations to sensory capacities and appearance

on the decomposition of wage differentials the often used method for decomposing wage differentials into human capital and discrimination components is reformulated so that both t he disadvantage or cost discrimination it imposes on a black or minority wage earner and the advantage or benefit it bestows on a white or majority wage earner can be estimated copyright 1988 by mit press

incorporating the causes of occupational differences in studies of racial wage differentials this study provides a basic framework for incorporating the causes of occupational differences into analyses of racial wage differentials separating the influences of personal characteristics occupational choice and hiring discrimination on occupational attainment provides measures of the contributions of each to the racial pay gap the paper also considers the potential for bias in the wage equation estimates arising from self selection into occupations there are two generalfindings first correcting for self selection increases the importance of occupational distribution in explaining racial wage differentials second a proper accounting of the causes of these occupational differences yields discrimination measures that are higher than those that arise when occupational dummy variables are included in the wage equations and all the difference in occupational distribution is treated as nondiscriminatory

saying i don t the effect of the affordable care act young adult provision on marriage this paper investigates the effect of the affordable care act young adult provision on the propensity to marry the young adult provision expanded options for obtaining insurance coverage outside of marriage young adults affected by the provision might have less incentive to marry since one avenue for obtaining health insurance coverage is through marriage this paper examines this question by applying difference in differences type methods using the 2008 2013 american community survey results suggest that the provision is associated with decreases in the likelihood of marrying cohabitation and spousal health insurance coverage and an increase in the probability of divorce

does the confucius institute impact international travel to china a panel data analysis this article examines the impact of confucius institutes on inbound travel to china we estimate a panel gravity model of inbound tourism flows to china between 2004 and 2010 we use a poisson pseudo maximum likelihood estimator to control for heteroscedasticity endemic in gravity models santos silva and tenreyro 2006 we find that the presence of confucius institute s in the source country increases overall tourism in general and business and worker tourists in particular

the effect of health improvements due to tobacco control on earnings in the united states there is minimal evidence causally estimating the relationship between tobacco tax policy population health and earnings this article uses state tobacco taxes as an instrument for life expectancy to estimate the effect on earnings per capita in a panel of almost 3000 counties in the united states over the period 1970 to 2000 in the first stage of the model we find that a one dollar increase in state tobacco taxes significantly increases life expectancy between 1 9 and 2 1 despite showing that tobacco tax is correlated with higher life expectancy and that theoretically improvements in health from reductions in smoking should lead to increased earnings we find an insignificant impact of the induced gains in life expectancy from tobacco policy on county level earnings per capita over the period 1970 to 2000 the lack of significance is explained through local average treatment effects and the smaller economic impact of certain policies that impact health later in life these results provide further

differences in the returns to education for males by disability status and age of disability onset author affiliation kevin hollenbeck w e upjohn institute 300 south westnedge avenue kalamazoo mi 49007 usa e mail hollenbeck upjohninstitute org jean kimmel department of economics western michigan university kalamazoo mi 49008 4023 usa e mail jean kimmel wmich edu corresponding author acknowledgment this paper is a substantially revised version of a paper that was first presented at the january 2001 assa meetings held in new orleans louisiana and then circulated as upjohn institute working paper no 01 72 the authors thank our discussant robert haveman for his excellent suggestions andrew houtenville for generous assistance with the disability literature doug kruse for input and data assistance above and beyond the call of duty and noyna debburman jason preuss and yuanlei zhu for their skillful research assistance additionally we are very appreciative to claire black and sue berkebile for their superb assistance in preparation of the manuscript finally we thank our journal editor plus two anonymous journal referees 1 introductionin 1990 the u s congress passed the americans with disabilities act ada legislation perceived as a hallmark in the quest by individuals with disabilities for equal access to labor market opportunities numerous studies have been published in recent years assessing the outcomes to date of this legislation and much debate continues regarding its success or failure in improving labor market outcomes however the ada is only one means of addressing labor market difficulties faced by individuals with disabilities because its primary intent is to expand the number of employment opportunities via employer accommodation the ada may be characterized as a demand side intervention 1 numerous education training and rehabilitation programs operate on the supply side of the labor market one example of increased attention on supply side programs may be seen in the workforce investment act of 1998 this sort of disability management model program has the goal of enhancing the skills and knowledge of workers with disabilities to increase their productivity and employability 2 the returns to education for the population with disabilities is indicative of the potential efficacy of such supply side interventions if the rates of return to formal education are large then it might be argued that there is an underinvestment in such interventions if the rates are low then expanding this human capital intervention as a way to improve employment or earnings may not be indicated formal educational attainment and its differential effects by disability status and age of onset are the focus of this paper for an individual with a work limiting condition the age of onset of this condition plays a role in education choices and employment a priori one might expect that among the population with disabilities those with early onset of the disability are the most able to adjust human capital investments and obtain job matches that minimize the potentially negative labor market impacts of the disabling condition see loprest and maag 2003 however the early onset of the disability might hinder human capital investment or affect its quality many studies and data sets have been used to document the disparities in employment related outcomes between people with and without disabilities and many nice summaries exist in the literature 3 depending on the data used and the definition of disability 4 approximately 8 15 of individuals of working age have disabilities in general individuals with a disability report lower employment rates lower levels of educational attainment and lower wages additionally many researchers have reported a post ada decline in employment rates although the cause of this trend is not clear and might be related to a worsening in recent years of disability severity amongst the population reporting disabilities or the trend might be confounded by changes in the labor force participation rates among the disabled

plant size and the decline of unionism abstract declining plant size is shown to explain a significant portion of the recent decline in unionism particularly in manufacturing the paper also shows how to use the probit model to decompose the change in unionism into explained and unexplained components

the macroeconomic effects of war finance in the united states world war ii and the korean war during world war ii government expenditures were financed primarily by issuing debt during the korean war expenditures were financed almost exclusively by higher taxes reflecting president truman s preference for balanced budgets this paper evaluates quantitatively the economic effects of the different policies used to finance these two wars counterfactual experiments are used to explore the implications of financing world war ii like the korean war and financing the korean war like world war ii the author finds that using a korean war policy during world war ii would have resulted in much lower output and welfare relative to the actual policy copyright 1997 by american economic association

an exogeneity test for a simultaneous equation tobit model with an application to labor supply a test of weak exogeneity in the simultaneous equation tobit model is proposed and illustrated using a female labour supply model estimated using cross section data the test statistic can be simply output from any standard tobit maximum likelihood package and is asymptotically efficient the procedure provides consistent estimators for the simultaneous tobit model whose asymptotic covariance matrix is a simple extension of the usual tobit formula we also provide the lagrange multiplier test of weak exogeneity this abstract was borrowed from another version of this item

gender wage discrimination in the thai labor market in thai this paper investigates the presence of gender wage differentials in the thai labor market a two step approach heckman 1979 was applied in estimating wage equations to avoid sample selection bias the wage differential decomposition methods oaxaca 1973 cotton 1988 oaxaca and ransom 1994 were used the data used were obtained from the labor force survey july september 2008 conducted by the national statistical office of thailand the findings indicate that female workers received lower wages than male workers because of their gender not because they are less productive on the contrary the female workers were shown to be more productive than the men the analysis indicates they would have earned higher wages than men this is especially true in the age groups 15 24 and 25 54 years old although the wage gap was partly explained by a lower productivity of workers 55 60 years old wage discrimination played a substantial role wage discrimination was worse in the younger than the older worker groups