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

reducing bureaucratic corruption interdisciplinary perspectives on what works abstract this article offers the first comprehensive review of the interdisciplinary state of knowledge regarding anti corruption policies with a particular focus on reducing corruption among civil servants drawing on the work of economists political scientists sociologists and anthropologists we examine seven policy categories 1 rewards and penalties 2 monitoring 3 restructuring bureaucracies 4 screening and recruiting 5 anti corruption agencies 6 educational campaigns and 7 international agreements notably rigorous empirical evaluation is lacking for the majority of commonly prescribed anti corruption policies nevertheless we find growing evidence of the effectiveness of policies based on monitoring including anti corruption audits and e governance in addition adequate civil service wages seem to be a necessary but insufficient condition for control of corruption an emerging skepticism regarding the effectiveness of anti corruption agencies also is apparent in the literature we conclude with broader lessons drawn from our review such as the recognition that when corruption is a systemic problem it cannot be treated in the long term with individual level solutions

is there a penalty for registered women is there a premium for registered men evidence from a sample of transsexual workers abstract in this paper we study the earnings of transsexual workers using a large administrative sample drawn from the dutch labor force in particular we make two comparisons first we compare transsexual workers to other women and men and find that they earn more than women and less than men second we compare transsexual workers before and after their administrative gender transition and find that male to female transsexual workers earn less as registered women and female to male transsexual workers earn as much if not marginally more as registered men these patterns hold for annual and hourly earnings and do not change when we account for individual fixed effects together our results are consistent with a labor market model in which transsexual workers are discriminated against as a registered female as well as a lgbt worker

the role of wages and auditing during a crackdown on corruption in the city of buenos aires abstract we study the prices paid for basic inputs during a crackdown on corruption in the public hospitals of the city of buenos aires argentina during 1996 97 we find a well defined negative effect on the measures used to capture corruption prices paid by hospitals for basic homogeneous inputs decrease by 15 percent during the first 9 months of the crackdown after this period prices increase but they are still 10 percent lower than those prevailing before the crackdown relative to the precrackdown period higher wages play no role in inducing lower input prices when audit intensity can be expected to be maximal during the first phase of the crackdown but have a negative and well defined effect when audit intensity takes intermediate levels the last phase of the crackdown controlling for fixed effects we find that the wage elasticity of input prices exceeds 20 these results are consistent with the standard model of bribes of gary becker and george stigler

corruption a review as is increasingly recognised in academic literature and by international organisations corruption acts as a major deterrent to growth and development the aim of this survey is to organise and summarise existing theoretical and empirical work on corruption with a view to identifying opportunities for further research the paper begins with a brief overview of key definitions of corruption and then turns to a review of the factors that favour or deter the growth of corruption together with a brief look at related models this is followed by an examination of the consequences of corruption for society and the consideration of measures that might help to reduce corruption the paper ends with suggestions for future research and includes summaries of data sources and key variables for use in this research

corruption investments and contributions to public goods experimental evidence from rural liberia we analyze how corruption affects incentives to invest or contribute to public goods we obtain a proxy for corruption among liberian community leaders by keeping track of a flow of inputs associated with a development intervention measuring these inputs before and after giving them in custody to the chief we then use the gap between these measurements missing inputs to explain variation in investment behavior of villagers investment behavior is gauged with two simple artefactual field experiments our main results are that corruption i undermines incentives for voluntary contributions to local public goods and ii may reduce private investments of individuals subject to rent seeking by the chief in real life we also provide weaker evidence that the impact of corruption on investments and contributions to public goods is heterogeneous this impact may be gender specific and appears to vary with accessibility of communities

sexual orientation and labour supply this is the first study of the effects of sexual orientation on labour supply after discussing various reasons to expect that labour supply could differ by sexual orientation the 2001 current population survey is used to test for differences in both labour supply and labour market status part time full time and not employed it is found that gay men supply less labour than married and unmarried heterosexual men with regard to women it is found that lesbians supply more labour and are more likely to be employed full time than either married or unmarried heterosexual women extensive controls are used and links to the discrimination literature are found

marginal pricing and supplement cost allocation in transmission open access the application of marginal costing to transmission pricing in open access schemes requires the collection of a supplement to finance the transmission systems the paper describes the application of marginal cost based pricing in the chilean power system and the difficulties faced in allocating the supplement among parties involved alternative methods for defining the allocation are formulated generalized generation and load distribution factors for cost allocation are formulated and implemented the methods are applied to allocate payments for transmission services provided by the transmission network and by a distribution company

contingent transmission rights in the standard market design we define transmission rights that are compatible with the federal energy regulatory commission s proposed standard market design smd and that provide flexibility in the points of receipt or delivery of energy contracts the contingent transmission rights introduced here provide a viable flexible method for defining smd compatible rights for transmission customers having current pre smd transmission rights that cover multiple points these contingent rights can be bought and sold in the transmission rights auctions under smd

on decomposing the wage gap a critical comment on blinder s method many studies have found that the impact of schooling on earnings is greater for females than for males despite the fact that females tend to earn less both absolutely and controlling for personal characteristics this study investigates possible

corruption in public service delivery an experimental analysis abstract to improve our understanding of corruption in service delivery we use a newly designed game that allows us to investigate the effects of the institutional environment on the behavior of service providers and their monitors we focus on the effect of four different factors whether monitors are accountable to the service recipients the degree of observability of service providers effort the providers wages and the providers professional norms in accordance with theory we find that service providers perform better when monitors are elected by service recipients and when their effort is more easily observed however there is only weak evidence that service providers perform better when paid more monitors are more vigilant when elected and when service providers are paid more playing the game with ethiopian nursing students we also find that those with greater exposure to the ethiopian public health sector perform less well either as provider or as monitor when the experiment is framed as a public health provision scenario suggesting that experience and norms affect behavior

race and gender discrimination in bargaining for a new car more than three hundred paired audits at new car dealerships reveal that dealers quoted significantly lower prices to white males than to black or female test buyers using identical scripted bargaining strategies ancillary evidence suggests that the dealerships disparate treatment of women and blacks may be caused by dealers statistical inferences about consumers reservation prices but the data do not strongly support any single theory of discrimination copyright 1995 by american economic association

market based transmission expansion planning restructuring and deregulation has exposed transmission planner to new objectives and uncertainties therefore new criteria and approaches are needed for transmission planning in deregulated environments a new market based approach for transmission planning in deregulated environments is presented in this paper the main contribution of this research is i introducing a new probabilistic tool named probabilistic locational marginal prices for computing the probability density functions of nodal prices ii defining new market based criteria for transmission expansion planning in deregulated environments and iii presenting a new approach for transmission expansion planning in deregulated environments using the above tool and criteria the advantages of this approach are i it encourages and facilitates competition among all participants ii it provides nondiscriminatory access to cheap generation for all consumers iii it considers all random and nonrandom power system uncertainties and selects the final plan after risk assessment of all solutions and iv it is value based and considers investment cost operation cost congestion cost load curtailment cost and cost caused by system unreliability the presented approach is applied to ieee 30 bus test system

anti discrimination or reverse discrimination the impact of changing demographics title vii and affirmative action on productivity this study estimates the changes over time in the relative productivities of minorities and females i find no significant evidence that the productivity of minorities or females decreased relative to that of white males as relative minority and female employment increased during the 1960s and 1970s this study also compares the impact of title vii and affirmative action and presents evidence that title vii litigation has played a significant role in increasing black employment this suggests that the employment of minorities and females has not entailed large efficiency costs and that title vii litigation has had some success in fighting racial discrimination the eeoc has sometimes been credited with opening up new pools of labor that corporations somehow contrived to ignore and occasionally with hastening the breakdown of traditional barriers to labor mobility but in the context of the market s endless search for efficiency these anomalies would have been eliminated anyway leaving only the question of whether they were worth the expenditures compelled by law affirmative action is a net cost to the economy and the true dynamic effects the opportunity cost of all this expense and effort the diminution of competition inefficiencies due to the employment and promotion of marginal labor and the consequent demoralization of good workers can only be a matter of conjecture although they are clearly the most important of all senator orrin hatch 1980

labor supply differences between married heterosexual women and partnered lesbians a semi parametric decomposition approach i introduction partnered lesbian women have substantially higher labor supply than married women leppel 2008 tebaldi and elmslie 2006 what might account for the sexual orientation gap in partnered female labor supply everyday conversation and casual empiricism suggests that partnered lesbian women have a stronger attachment to the labor market relative to married women because of their choice to have fewer children than their married counterparts yet this has not been formally analyzed the primary goal of this study is to determine the role observable characteristics particularly children play in explaining the differences in labor supply between partnered lesbian women and married women while empirical research on the determinants of partnered lesbian women s labor supply is limited 1 the determinants of married women s labor supply have been studied in great detail see blundell and macurdy 1999 for a survey of the literature in general married women s labor supply is found to be positively related to own wages negatively related to spouse wages and nonlabor income and negatively related to the presence of children particularly young children in the household 2 importantly the same control variables are not found to have the same effect on married men s labor supply in particular men are not responsive to their wife s earnings and tend to have higher labor supply because of the presence of children these findings are consistent with a traditional division of labor into market and household work which results in married men being viewed as the primary earners and married women being viewed as the secondary earners 3 in particular becker 1981 argues that increasing returns from investments in specific human capital encourages a division of labor in market work and household work among household members the sexual division of labor however arises from intrinsically different comparative advantages of men and women e g in the production of children which would determine the direction of the division of tasks by gender this in turn leads to differences in specific human capital accumulation which reinforces the intrinsically different comparative advantages of men and women even in the face of rising female labor force participation increased divorce rates and lower fertility male and female earnings would not be equalized becker 1985 specifically becker argues that married women with household responsibilities e g child care and food preparation would expend less energy on market work make lower investments in market oriented human capital face lower hourly earnings and choose less demanding jobs occupations than married men even when they work the same number of hours because household responsibilities are time and effort intensive relative to leisure and other nonmarket uses of time by men moreover married women would have lower labor force participation than their husbands because of the lower earnings they would face because of less energy expended on market work and lower investments in market oriented human capital and a full equilibrium could involve complete specialization by married women in household production although married men have increased their time spent on child care production there is strong evidence that married women continue to spend more time on child care production than their spouses bianchi robinson and milkie 2006 drago and lee 2008a 2008b kalenkoski ribar and stratton 2005 2007 lundberg pabilonia and ward batts 2007 in addition the sociology literature argues that married women are more likely to identify themselves in the context of family and market work while married men are more likely to identify themselves in the context of market work alone see e g bielby and bielby 1989 finally there is a large literature that tests the specialization hypothesis bardasi and taylor 2008 daniel 1992 gray 1997 hersch and stratton 2000 kenny 1983 loh 1996 stratton 2002

a decomposition method on employment and wage discrimination and its application in urban china 2002 2013 abstract labor market discrimination is an important issue in developing countries where path dependent institutions have been dominant while effective institutional arrangements and policies have been hidden by local customs and culture however the existing applications of classical blinder oaxaca decomposition face criticism for their imprecise understanding of the factors affecting institutional discrimination in labor markets as well as for their lack of power in formulating well targeted anti discrimination policies following oaxaca 1973 we propose a new method to decompose the total discrimination index tdi to analyze employment and wage discrimination in the labor markets of developing countries the tdi is decomposed into the employment discrimination index edi and the wage discrimination index wdi then into the underpayment index to majorities upi and the overpayment index to minorities opi we apply this method to the institutional discrimination against rural migrants in china s urban areas using national representative data from 2002 to 2013 we have found that 1 the tdi increased quickly after china entered the wto then dropped after anti discrimination policies were implemented 2 the tdi is mainly determined by the upi while the tdi s fluctuation is mainly determined by the wdi our method provides insights into the changing composition of employment and wage discrimination and their respective labor market outcomes in developing countries as a result appropriate policy measures may be developed accordingly

early career work experience and gender wage differentials we estimate a wage model that includes an array of variables measuring the fraction of time worked during each year of the career this array fully characterizes past employment experience regardless of how sporadic it has been our model yields substantially higher estimated returns to experience and lower returns to tenure than do models that measure experience cumulatively and use the standard quadratic functional form we find that the data reject the standard model but fail to reject our model furthermore we find that 12 of the male female wage gap is due to differences in the timing of work experience

an analysis of the effects of higher education on wage differentials between blacks and whites by gender in the united states previous analyses that have examined the effect to higher education on the wage differences between blacks and whites have largely been focussed on males and failed to provide quantitative estimates of the impact that higher education has on discrimination and the black white wage differential for both genders in 1980 in particular we find that equalizing the years of college completed by black and white males reduces the wage differential by 14 conversely equalizing the years of college completed by black and white females exacerbates wage inequality by increasing the wage advantage accruing to black females by nearly 24 hence the egalitarian policy mission of higher education in narrowing wage inequality between blacks and whites is complicated by the issue of gender

the disappearing gay income penalty abstract since 1995 labor economists have reported on the income disparities between individuals who engage in same sex behavior and those that do not many of these papers report a significant wage penalty while others find no effect but few look at the trend over time we find using national health and examination survey nhanes data from 1988 to 2007 that the income gap has reversed over time from a penalty to a premium

incarceration length employment and earnings this paper estimates effects of increases in incarceration length on employment and earnings prospects of individuals after their release from prison i utilize a variety of research designs including controlling for observable factors and using instrumental variables for incarceration length based on randomly assigned judges with different sentencing propensities the results show no consistent evidence of adverse labor market consequences of longer incarceration length using any of the analytical methods in either the state system in florida or the federal system in california

the sexual orientation wage gap the role of occupational sorting and human capital using data from the 2000 u s census the authors explore two alternative explanations for the sexual orientation wage gap occupational sorting and human capital differences they find that lesbian women earned more than heterosexual women irrespective of marital status while gay men earned less than their married heterosexual counterparts but more than their cohabitating heterosexual counterparts results of a oaxaca blinder decomposition indicate that the relative wage advantages observed for some groups of lesbians and gay men were mainly owing to greater levels of human capital accumulation particularly education while occupational sorting had little or no influence the relative wage penalties that were observed in other cases however cannot be attributed either to differences in occupational sorting or to human capital an analysis employing a dinardo fortin and lemieux decomposition which allows for variation in the wage gap at different points along the wage distribution broadly confir

the influence of gay and lesbian coupled households on house prices in conservative and liberal neighborhoods abstract gays and lesbians perceive themselves to be targets of discrimination in the housing market previous research has found that the presence of gays and lesbians is associated with increased housing values we reconcile the perceived discrimination and research results by classifying neighborhoods as more conservative or liberal according to voting outcomes of the defense of marriage act using a data set comprised of over 20 000 house sale observations we show that an increase in the number of same sex coupled households is associated with an increase in house prices in more liberal neighborhoods and a decrease in house prices in more conservative neighborhoods this suggests that gay and lesbian coupled households do experience prejudice in conservative neighborhoods

the impact of psychological and human capital on wages historically economists have taken the position that psychological capital is either unobservable or immeasurable thus heretofore little evidence has been available on the contribution of psychological capital to wages using data drawn from two different waves of the national longitudinal survey of youth we offer evidence that psychological capital has both a direct effect via self esteem and an indirect effect through locus of control on an individual s real wage we find a person s wage is more sensitive to changes in self esteem than to comparable alterations in human capital both relative wages and human capital contribute to self esteem

border flow rights and contracts for differences of differences models for electric transmission property rights in this paper a property rights model for electric transmission is proposed and its properties analyzed the proposed rights called border flow rights support financial hedging of transmission risk and merchant transmission expansion through associated financial rights called contracts for differences of differences these financial rights allow for forward trading of both energy and transmission by a unified exchange avoiding the bifurcation in current markets between decentralized long term energy trading and centralized long term transmission trading such long term trading can help to support the financing of both generation and transmission assets we consider incentive properties of such a right in the absence of lumpiness economies of scale and market power

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

are emily and greg more employable than lakisha and jamal a field experiment on labor market discrimination we study race in the labor market by sending fictitious resumes to help wanted ads in boston and chicago newspapers to manipulate perceived race resumes are randomly assigned african american or white sounding names white names receive 50 percent more callbacks for interviews callbacks are also more responsive to resume quality for white names than for african american ones the racial gap is uniform across occupation industry and employer size we also find little evidence that employers are inferring social class from the names differential treatment by race still appears to still be prominent in the u s labor market jel j71 j64

bureaucratic structure and bureaucratic performance in less developed countries abstract we argue that several easily identifiable structural features constitute the key ingredients of effective state bureaucracies and should help to predict ratings of bureaucratic performance competitive salaries internal promotion and career stability and meritocratic recruitment we collect a new dataset on these features for bureaucracies of 35 less developed countries controlling for country income level of education and ethnolinguistic diversity we find that our measure of meritocratic recruitment is a statistically significant determinant of ratings supplied by two of three country risk agencies the importance of competitive salaries and internal promotion and career stability could not be clearly established

obtaining a driver s license in india an experimental approach to studying corruption we conduct two experiments to understand the process of obtaining a driver s license in india in the first experiment we randomly assign license candidates to one of three groups bonus offered a financial reward if they could obtain their license fast lesson offered free driving lessons upfront and control the control group alone illustrates bureaucratic failures 71 of the license getters in that group avoided the mandated driving test and 62 failed a surprise driving test the system responds to private needs there are more license getters in the bonus group but at a social cost there are more license getters who cannot drive in the bonus group the system however also appears to respond to social considerations as there are more license getters in the lesson group large extra legal payments are made by license getters those in the control group pay 2 5 times the official fee more of these extra legal payments take place in the bonus group surprisingly these extra legal payments are not direct bribes to bureaucrats but instead payments to agents in the second experiment we perform an audit study to better understand the role of agents the audit shows that agents can provide licenses to individuals even if they cannot drive but the audit also shows that agents cannot as easily circumvent all other rules we argue that our findings are most consistent with agents being the channel for corruption in this system we also report some suggestive evidence that bureaucrats create red tape possibly to induce more license candidates to use agents

transmission rights and transmission expansions in this paper we propose a new method of defining rights that may be assigned to the developer of a transmission expansion project they include a right to collect the value of the capacity provided by the expansion project as well as the value arising from the admittance of the expansion project this approach not only ties the rights allocation to actual physical characteristics of the transmission project but also allows such allocation to remain independent both of the order in which the projects are treated and of any previously allocated transmission rights

corruption and development a review of issues in this paper we start with a discussion of some of the different denotations of the problem of corruption we then consider the ways in which the damaging consequences of corruption operate in a developing economy while not ignoring its possible redeeming features in some cases we pursue the question of why corruption is perceptibly so different in different societies and also persistent finally we examine the feasible policy issues that arise in this context

labour market discrimination against former juvenile delinquents evidence from a field experiment in view of policy action to integrate ex offenders into society it is important to identify the underlying mechanisms of the negative relationship between criminal record on the one hand and later employment and earnings on the other hand in this study we identify hiring discrimination against former juvenile delinquents in a direct way to this end we conduct a field experiment in the belgian labour market we find that labour market discrimination is indeed a major barrier in the transition to work for former juvenile delinquents labour market entrants disclosing a history of juvenile delinquency get about 22 less callback compared to their counterparts without a criminal record this discrimination is heterogeneous by the occupation for which one applies

gender differences in motivational crowding out of work performance this paper shows that prior financial incentives induce a crowding out effect when incentives are discontinued in our real effort experiment workers receive a piece rate before monetary incentives are substituted by a one time payment in this case workers performance significantly drops when receiving the one time payment the effect is driven by a fraction of men who reduce effort substantially whereas women constantly perform well we find that this motivational crowding out effect disappears when men do not have prior experience of a piece rate in a series of control treatments we discard several alternative explanations besides motivational crowding out jel c91 j16 m54

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

the impact of an unexpected wage cut on corruption evidence from a xeroxed exam this paper aims to understand how corruption responds to an income loss we exploit an unexpected 25 wage cut incurred in 2010 by all romanian public sector employees including the public education staff we investigate a corruptible high stake exam taking place shortly after the wage announcement to measure corruption we compare changes in exam outcomes from 2007 to 2010 between public and private schools as the latter were not affected by the policy we find that the wage loss induced better exam outcomes in public than in private schools and we attribute this difference to increased corruption by public educators

duration of disability job mismatch and employment outcomes abstractworkers with disabilities have functional limitations that affect their productivity in some but not necessarily all jobs workers who find a job that is a good match for their functional limitations i e a job where their limitations have little or no impact on important job functions should expect better employment outcomes e g higher wages longer job tenure than workers with similar disabilities who are mismatched in their jobs merging data from the survey of income and program participation with o net data on job demands we construct two continuous measures of job mismatch for workers with physical disabilities we then extend the literature on disability and employment by exploring relationships between duration of disability job mismatch wages and hours worked the results indicate that workers with long durations of disability are employed in jobs that are a better match to their physical limitations than are similar workers with shorter durations of disability and workers who

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

a test of the measures of non discriminatory wages used to study wage discrimination abstract this article uses estimates of the employment effects of wage discrimination to evaluate different measures of non discriminatory wages measures that reflect the numbers of majority and minority workers appear to be superior to oaxaca s index number approach

the effect of arrests on the employment and earnings of young men many young men commit crime and many are arrested i estimate the effect of arrests on the employment and earnings of arrestees using a large longitudinal data set constructed by merging police records with ui earnings data i find that the effects of arrests are moderate in magnitude and rather short lived

marginal pricing of transmission services an analysis of cost recovery this paper presents an in depth analysis of network revenues computed with marginal pricing and in particular it investigates the reasons why marginal prices fail to recover the total incurred network costs in actual power systems the basic theoretical results are presented and the major causes of the mismatch between network costs and marginal revenues are identified and illustrated with numerical examples some tutorial and others of realistic size the regulatory implications of marginal network pricing in the context of competitive electricity markets are analyzed and suggestions are provided for the meaningful allocation of the costs of the network among its users

eliciting beliefs proper scoring rules incentives stakes and hedging accurate measurements of probabilistic beliefs have become increasingly important both in practice and in academia introduced by statisticians in the 1950s to promote truthful reports in simple environments proper scoring rules psr are now arguably the most popular incentivized mechanisms to elicit an agent s beliefs this paper generalizes the analysis of psr to richer environments relevant to economists more speci cally we combine theory and experiment to study how beliefs reported with a psr may be biased when i the psr payments are increased ii the agent has a nancial stake in the event she is predicting and iii the agent can hedge her prediction by taking an additional action our results reveal complex distortions of reported beliefs thereby raising concerns about the ability of psr to recover truthful beliefs in general economic environments

a controlled field experiment on corruption abstract this paper reports on a controlled field experiment on corruption designed to address two important issues the experimenter s scrutiny and the unobservability of corruption in the experiment a grader is offered a bribe along with a demand for a better grade we find that graders respond more favorably to bigger bribes while the effect of higher wages is ambiguous it lowers the bribe s acceptance but it fosters reciprocation monitoring and punishment can deter corruption but we cannot reject that it may also crowd out intrinsic motivations for honesty when intensified finally our results suggest several micro determinants of corruption including age ability religiosity but not gender

empirical age earnings profiles the human capital earnings function in which earnings are expressed as a quadratic in potential experience is probably the most widely accepted empirical specification in economics in spite of its widespread acceptance the human capital earnings function provides a very poor approximation of the true empirical relationship between earnings and experience the standard formulation understates early career earnings growth by about 30 50 and overstates midcareer growth by 20 50 however simple alternative specifications that fit the data are available

an investigation into sexual orientation discrimination as an explanation for wage differences this study explores the effects of sexual orientation on earnings it is found that ceteris paribus men living with male partners tend to earn less than other men and women living with female partners tend to earn more than other women these earnings differentials tend to vary by region they also vary by education and occupation for men and with the presence of minor children for women in addition the age earnings profiles of women living with female partners tend to be higher flatter and less concave than those of other women

transmission assets investment timing using net present value curves improvement and expansion of the transmission grid is still an unresolved issue in the new competitive environment in current electricity markets transmission lines have become assets that need financial instruments for investors who wish to ensure steady long term returns and to withstand short term market volatility the timing and the combination of new transmission investments is key to analyze their long term effects this paper presents the concept of net present value npv curve to estimate the best investment time for the investor where the curve is constructed by calculating the npvs resulting from the investment in successive years a specific contract model based on financial transmission rights ftr is used for the npv evaluation of transmission assets and the stochastic properties of all variables related to the investment market structure are considered the model is applied to the ieee 24 bus reliability test system rts showing the approach capabilities as a decision aid tool for transmission investors

pay differences among the highly paid the male female earnings gap in lawyers salaries this article uses very detailed information on graduates of the university of michigan law school to examine male female pay differences in that population men and women in this population have virtually identical human capital on graduation from law school allowing us to examine carefully the different impact of children and work history on men s and women s careers and earnings taking time from work in order to care for children reduces wages significantly but a rich set of controls including childcare work history school performance and job setting measures still leave one fourth to one third of the earnings gap unexplained

crime inequality and unemployment in england and wales a model of crime is developed based on principles from the existing literature with some original insight the implications of the model are that income inequality and unemployment are important explanatory variables for crimes motivated by economic gain but do not offer much explanatory power for other types of crime panel data of uk regions over the years from 2002 to 2007 are then used to test these predictions the empirical results strongly support the hypothesis that crime is an economic phenomenon

do field experiments on labor and housing markets overstate discrimination a re examination of the evidence since 2000 more than 80 field experiments across 23 countries consider the traditional dimensions of discrimination in labor and housing markets such as discrimination based on race these studies

employers discriminatory behavior and the estimation of wage discrimination this paper considers the linkage of empirical estimates of wage discrimination between two groups introduced by oaxaca 1973 to a theoretical model of employers discriminatory behavior it is shown that conditional on different assumptions about employers discriminatory tastes oaxaca s estimators of wage discrimination can be derived that the approach is more generally useful is demonstrated by deriving an alternative estimator of wage discrimination based on the assumption that within each type of labor e g unskilled skilled the utility function capturing employers discriminatory tastes is homogeneous of degree zero with respect to labor inputs from each of the two groups the estimators are compared empirically in an application to male female wage differentials

an analysis of the marginal value of electricity transmission lines in the dispatch possible applications the marginal value of transmission lines in the dispatch is widely used in the literature and has relevant practical applications related to planning the expansion of the transmission grid and computing the remuneration of merchant lines this paper presents a general formulation of the marginal value of a line in the dispatch that highlights the dependence of this value on the link between line admittance and capacity we discuss the value of a line according to marginal principles following a general approach and prove that only if the admittance of a line can be expressed as a linear function of its capacity or when admittance and capacity can be deemed independent is this value equal to the product of the difference between marginal electricity prices at both ends of the line and the flow through this line afterwards we show that under a set of stylized conditions the remuneration of efficient network investments according to their marginal value in the dispatch should result in an exact recovery of their cost finally we compute the marginal value of lines in a stylized though representative system for several relationships between line capacities and admittances to illustrate the theoretical results obtained

sex discrimination in restaurant hiring an audit study in an audit study of sex discrimination in hiring comparably matched pairs of men and women applied for jobs as waiters and waitresses at restaurants in philadelphia in high price restaurants where earnings are higher job applications from women had an estimated probability of receiving a job offer that was lower by about 0 4 and an estimated probability of receiving an interview that was lower by about 0 35 both estimated differentials are statistically significant additional evidence suggests that customer discrimination partly underlies the hiring discrimination

field experiments of discrimination in the market place controlled experiments using matched pairs of bogus transactors to test for discrimination in the marketplace have been conducted for over 30 years and have extended across 10 countries significant persistent and pervasive levels of discrimination have been found against non whites and women in labour housing and product markets rates of employment discrimination against non whites in excess of 25 have been measured in australia europe and north america a small number of experiments have also investigated employment discrimination against the disabled in britain and the netherlands and against older applicants in the united states

ban the box criminal records and racial discrimination a field experiment ban the box btb policies restrict employers from asking about applicants criminal histories on job applications and are often presented as a means of reducing unemployment among black men who disproportionately have criminal records however withholding information about criminal records could risk encouraging racial discrimination employers may make assumptions about criminality based on the applicant s race to investigate btb s effects we sent approximately 15 000 online job applications on behalf of fictitious young male applicants to employers in new jersey and new york city before and after the adoption of btb policies these applications varied whether the applicant had a distinctly black or distinctly white name and the felony conviction status of the applicant we confirm that criminal records are a major barrier to employment employers that asked about criminal records were 63 more likely to call applicants with no record however our results support the concern that btb policies encourage racial discrimination the black white gap in callbacks grew dramatically at companies that removed the box after the policy went into effect before btb white applicants to employers with the box received 7 more callbacks than similar black applicants but btb increased this gap to 43 we believe that the best interpretation of these results is that employers are relying on exaggerated impressions of real world racial differences in felony conviction rates

framing of incentives and effort provision a prospect theory model combining loss aversion and diminishing sensitivity predicts that the link between incentives framing and effort is ambiguous small penalties yield higher effort but isomorphic contracts with large penalties decrease effort we conduct two experiments a framed field and a conventional lab experiment in which economically equivalent contracts are framed as menus of either i bonuses ii penalties or iii bonuses and penalties the experimental results confirm the main intuition of the model as subjects performed best when bonuses and penalties are combined a follow up lottery experiment confirms that both loss aversion and diminishing sensitivity influenced the performance

gender and corruption in business abstractare firms with female owners or managers less corrupt than other firms we test this question using firm level data on corruption ownership and management we find that women in positions of influence are associated with less corruption female owners are associated with a lower incidence of bribery and report smaller levels of bribery moreover corruption is seen as less of an obstacle in companies where women are represented in top management by providing evidence that women are associated with lower levels of corruption in business our research contributes to the literature on development gender equality and corruption

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

an empirical analysis of homosexual heterosexual male earnings differentials unmarried and unequal using data from the 1990 u s census pums 5 the authors present the first large scale study of wage differentials between heterosexual and homosexual men the homosexual sample consisting of gay men in unmarried partnered relationships are estimated to have earned 15 6 less than similarly qualified married heterosexual men and 2 4 less than similarly qualified unmarried partnered heterosexual men the authors interpret these two figures as upper and lower bound estimates of the differential between homosexual and heterosexual men the dual comparison enables the authors to disentangle the penalty to being unmarried from other determinants of the wage differential estimated at 14 1 this variable appears to be the main source of the wage gap

bureaucratic corruption and the rate of temptation do wages in the civil service affect corruption and by how much abstract this paper presents what is to our knowledge the first empirical estimate of the effect of pay in the civil service on corruption first we show that theory is ambiguous on the relationship between civil service pay and corruption then we examine the issue using a new data set on wages for low income countries we find evidence of a statistically and economically significant relationship between relative civil service pay and corruption in regressions based on cross country averages where we control for a wide array of variables the relationship implies that a rather large increase in wages is required to eradicate corruption solely by raising wages

male female wage differentials and policy responses without implicating them for any of the contents of the paper i am grateful to the following for helpful discussions or comments andrea beller university of illinois david bloom harvard and columnbia glen cain university of wisconsin ron ehrenberg cornell victor fuchs stanford bob gregory australian national university jonathan leonard university of california berkeley roberta robb brock university and paul weiler harvard financial support of the humanities and social sciences committee of the research board of the universitu of toronto is eratefullu acknowlede ed

propensities to engage in and punish corrupt behavior experimental evidence from australia india indonesia and singapore abstract this paper examines cultural differences in individual decision making in a corruption game we define culture as an individual s accumulated experience shaped by the social institutional and economic aspects of the environment in which the individual lives based on experiments run in australia melbourne india delhi indonesia jakarta and singapore we find that there is a greater variation in the propensities to punish corrupt behavior than in the propensities to engage in corrupt behavior across cultures consistent with the existing corruption indices the subjects in india exhibit a higher tolerance of corruption than the subjects in australia however the subjects in singapore have a higher tolerance and the subjects in indonesia have much lower tolerance of corruption than expected we conjecture that this is due to the nature of the recent institutional changes in these two countries we also vary our experimental design to examine the impact of the perceived cost of bribery and find that the results are culture specific

a joint energy and transmission rights auction proposal and properties an auction based process is proposed that allows power market participants to acquire and reconfigure financial transmission rights the process simultaneously accommodates flowgate and point to point options and obligations along with energy production and consumption futures a sequence of auctions is held during which participants can buy and sell rights which are then settled in a day ahead or real time auction at which time all rights are cashed out by allowing flowgate and point to point obligations and options to be reconfigured and exchanged the market can decide what combination of financial rights are most useful to power generators consumers and traders rights can be specified not only for capacity of individual flowgates but also for more complex transmission constraints such as nomograms under certain conditions we prove that the auction is revenue adequate for the market operator in that payments to rights holders cannot exceed congestion revenues we present a linearized dc auction along with a numerical illustration

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

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

taxation and corruption theory and firm level evidence from uganda this article develops a simple framework to analyse the negotiation over bribe and tax payments during the tax collection process we show that the larger the bribe a firm offers to a tax collector the larger the tax rebate it gets more particularly we show that the negotiation over bribe and tax payments hinges on four other factors firms official liabilities detection firms negotiation power and red tape costs imposed on firms some of the predictions from the theoretical model are tested using firm level data from uganda we find that bribe and tax payments are inversely related thereby supporting the hypothesis of a negotiation taking place between firms and tax collectors in particular a 1 point increase in average bribe payments per employee is associated with a 7 point reduction in average amount of tax payments per employee results are robust to various instruments dealing with the endogenous relationship between bribes and taxes

bribe or die gender differences in entrepreneurship in emerging markets this paper examines the relation between gender differences in entrepreneurship and firm level bribery one of the most impactful business obstacles to private sector growth using data from a comp

is there less discrimination in occupations where recruitment is difficult the authors empirically test the cross sectional relationship between hiring discrimination and labor market tightness at the level of the occupation to this end they conduct a correspondence tes

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

sexual orientation and labour relations new evidence from athens greece we use data from the 2008 2009 athens area study aas to provide the first evidence on the relationship between men s sexual orientation and wages in the greek capital athens gay and bisexual men are found to receive significantly lower monthly wages than heterosexual male workers after accounting for demographic and occupational characteristics the estimations reveal that educated gay and bisexual workers face lower wage differentials than less educated gay and bisexual workers which is consistent with the statistical theory of discrimination however wage gaps are significant at all educational attainment levels suggesting that these workers face strong prejudices in the athenian labour market the same pattern holds also across all occupations and sectors furthermore to better understand the determinants of the wage gaps we compare gay bisexual men with both married and unmarried heterosexual men by making these comparisons we are able to disentangle the penalty associated with being unmarr

network models of spatial oligopoly with an application to deregulation of electricity generation because of the existence of transmission costs and significant scale economies in power production deregulation of electricity generation would lead to spatial oligopolistic markets this paper uses linear programs to obtain short run spatial price equilibria for a deregulated bulk power market in upstate new york these models unlike most previous models of imperfect competition capture spatial variations in production costs and demand functions we present two models one calculates a nash bertrand equilibrium in which each firm believes that rivals will not react to price changes this equilibrium represents the most intense level of competition to be expected the other model yields limit prices that are designed to discourage new firms from entering the market

experimental research on labor market discrimination understanding whether labor market discrimination explains inferior labor market outcomes for many groups has drawn the attention of labor economists for decades at least since the publication of gary becker s the economics of discrimination in 1957 the decades of research on discrimination in labor markets began with a regression based decomposition approach asking whether raw wage or earnings differences between groups which might constitute prima facie evidence of discrimination were in fact attributable to other productivity related factors subsequent research responding in large part to limitations of the regression based approach moved on to other approaches such as using firm level data to estimate both marginal productivity and wage differentials in recent years however there has been substantial growth in experimental research on labor market discrimination although the earliest experiments were done decades ago some experimental research on labor market discrimination takes place in the lab but far more of it is done in the field which makes this particular area of experimental research unique relative to the explosion of experimental economic research more generally this paper surveys the full range of experimental literature on labor market discrimination places it in the context of the broader research literature on labor market discrimination discusses the experimental literature from many different perspectives empirical theoretical and policy and reviews both what this literature has taught us thus far and what remains to be done

multi stage flexible expansion co planning under uncertainties in a combined electricity and gas market natural gas is an important fuel source in the power industry electricity and natural gas are both energy that can be directly consumed to improve the overall efficiency of the energy infrastructure it is imperative that the expansion of gas power plants electricity transmission lines and gas pipelines can be co planned the co planning process is modeled as a mixed integer nonlinear programming problem to handle conflicting objectives simultaneously we propose a novel model to identify the optimal co expansion plan in terms of social welfare to evaluate the robustness of plans under different scenarios the flexibility criterion is used to identify each plan s adaptation cost to uncertainties such as demand growth fuel cost and financial constraints etc we developed a systematic and comprehensive planning model to understand develop and optimize energy grids in order to reach higher social welfare and is therefore of great importance in terms of supporting and guiding investment decisions for the power and gas industry meanwhile we use the sequential importance sampling sis to perform scenario reduction for achieving a higher computational efficiency a comprehensive case study on the integrated ieee 14 bus and a test gas system is conducted to validate our approach

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

sexual orientation work and income in canada abstract we provide the first evidence on sexual orientation and economic outcomes in canada using confidential data that ask adults a direct question about their sexual orientation gay men have 12 lower personal incomes and lesbians have 15 higher personal incomes than otherwise similar heterosexual men and women respectively different labour force patterns can account for some of the income differentials we also document large differences in educational attainment childrearing and urbanicity that generally mirror patterns found in the us finally we show that applying couples based approaches common in this literature greatly overstates the magnitudes of gay straight income gaps

swimming upstream trends in the gender wage differential in the 1980s using michigan panel study of income dynamics data for 1979 and 1988 we analyze how a falling gender wage gap occurred despite changes in wage structure unfavorable to low wage workers the decrease is traced to gender specific factors which more than counterbalanced changes in measured and unmeasured prices working against women supply shifts net of demand were unfavorable for women generally and hurt high skilled more than middle and low skilled women by analyzing wages we find support for the notion of a gender twist in supply and demand having its largest negative effect on high skilled women

measuring racial discrimination with fair housing audits caught in the act a survey technique called a fair housing audit provides a direct measure of racial discrimination in housing this paper examines the econometric issues raised by audit data measures the discrimination uncovered by a 1981 boston study and tests hypotheses about the causes of discrimination the estimated level of discrimination is high black housing seekers are told about 30 percent fewer available housing units than are whites the hypothesis tests indicate that the primary cause of this discrimination is that housing agents illegally promote their economic interests by catering to the racial prejudice of their current or potential white customers