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"MINIMUM WAGE"
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Living wage : regulatory solutions to informal and precarious work in global supply chains
This book is driven by a quest to re-regulate work to reduce informality and inequality, and promote a living wage for more people across the world. It presents the findings of a multidisciplinary study in four countries of varying wealth and development, exploring why people become trapped in precarious work. The accounts describe the impact of supply chain governance, trade agreements, internal and between-country migration, legal factors, as well as the socio-economic characteristics and outlooks of the workers. 0In a unique approach, the chapters describe existing labour regulation measures that have succeeded, but which have to date attracted little scholarly attention. Building on these existing innovations, the book proposes a new international labour law which would incrementally increase the wages of the poor and regulate precarious work in global supply chains.
Book
CREDIBLE RESEARCH DESIGNS FOR MINIMUM WAGE STUDIES
The authors assess the critique by Neumark, Salas, and Wascher (2014) of minimum wage studies that found small effects on teen employment. Data from 1979 to 2014 contradict NSW; the authors show that the disemployment suggested by a model assuming parallel trends across U.S. states mostly reflects differential pre-existing trends. A data-driven LASSO procedure that optimally corrects for state trends produces a small employment elasticity (–0.01). Even a highly sparse model rules out substantial disemployment effects, contrary to NSW’s claim that the authors discard too much information. Synthetic controls do place more weight on nearby states—confirming the value of regional controls—and generate an elasticity of 20.04. A similar elasticity (–0.06) obtains from a design comparing contiguous border counties, which the authors show to be good controls. NSW’s preferred matching estimates mix treatment and control units, obtain poor matches, and find the highest employment declines where the relative minimum wage falls. These findings refute NSW’s key claims.
Journal Article
REVISITING THE MINIMUM WAGE–EMPLOYMENT DEBATE: THROWING OUT THE BABY WITH THE BATHWATER?
The authors revisit the long-running minimum wage–employment debate to assess new studies claiming that estimates produced by the panel data approach commonly used in recent minimum wage research are flawed by that approach's failure to account for spatial heterogeneity. The new studies use research designs intended to control for this heterogeneity and conclude that minimum wages in the United States have not reduced employment. The authors explore the ability of the new research designs to isolate reliable identifying information, and they test the designs' untested assumptions about the construction of better control groups. Their analysis reveals problems with the new research designs. Moreover, using methods that let the data identify the appropriate control groups, their results reaffirm the evidence of disemployment effects, with teen employment elasticities near -0.15. This evidence, they conclude, still shows that minimum wages pose a tradeoff of higher wages for some against job losses for others.
Journal Article
The fight for fifteen : the right wage for a working America
\"The fight for a higher minimum wage has become the biggest national labor story in decades. Beginning in November 2012, strikes by fast food workers spread across the country, landing in Seattle in May 2013. Within a year, Seattle had adopted a $15 minimum wage--the highest in the United States--without a bloody political battle. Combining history, economics, and commonsense political wisdom, The Fight for Fifteen makes a deeply informed case for a national $15/hour minimum wage as the only practical solution to reversing America's decades-long slide toward becoming a low-wage nation. Drawing both on new scholarship and on his extensive practical experiences organizing workers and grappling with inequality across the United States, David Rolf, president of SEIU 775 (which waged the successful Seattle campaign) offers an accessible explanation of \"middle out\" economics, an emerging popular economic theory that suggests that the origins of prosperity in capitalist economies lie with workers and consumers, not investors and employers. A blueprint for a different and hopeful American future, The Fight for Fifteen offers concrete tools, ideas, and inspiration for anyone interested in real change in our lifetimes\"-- Page 4 of cover.
Book
Solo Self-Employment and Alternative Work Arrangements
The nature of self-employment is changing in most OECD countries. Solo self-employment is increasing relative to self-employment with dependent employees, often being associated with the development of gig economy work and alternative work arrangements. We still know little about this changing composition of jobs. Drawing on ad-hoc surveys run in the UK, US, and Italy, we document that solo self-employment is substantively different from self-employment with employees, being an intermediate status between employment and unemployment, and for some, becoming a new frontier of underemployment. Its spread originates a strong demand for social insurance which rarely meets an adequate supply given the informational asymmetries of these jobs. Enforcing minimum wage legislation on these jobs and reconsidering the preferential tax treatment offered to self-employment could discourage abuse of these positions to hide de facto dependent employment jobs. Improved measures of labor slack should be developed to acknowledge that, over and above unemployment, some of the solo self-employment and alternative work arrangements present in today's labor market are placing downward pressure on wages.
Journal Article
Firm Response to Competitive Shocks
The large regional variation in minimum wage levels during the period 2002–8 in China implies that Chinese manufacturing firms experienced competitive shocks as a function of firm location and their low-wage employment share. We find that minimum wage hikes accelerate the input substitution from labour to capital, reduce employment growth and accelerate total factor productivity growth—particularly among the less productive firms under private Chinese or foreign ownership, but not among state-owned enterprises. The heterogeneous firm response to labour cost shocks can be explained by differences in management practices and suggests that management quality and competitive pressure are complementary.
Journal Article
The upper limit : how low-wage work defines punishment and welfare
\"Since 1993, crime has fallen in the United States to historical lows, providing extraordinary legitimacy to the country's peculiar mix of welfare and punishment, with ever stingier social programs for the poor and the highest rates of incarceration in the world. The Upper Limit sets out to explain why. It provides a comprehensive theory of the evolution of social and penal policy which can be summarized thus: welfare has to be less attractive than low-wage work, and punishment has to make criminal life less attractive than welfare. Low-wage work sets the upper limit of social and penal policy. Declining living standards for the poor since the 1970s have lowered the upper limit in the United States. The Upper Limit explores how these transformations and the ensuing crime drop have affected the lives of the poor in a formerly high-crime Brooklyn neighborhood, East New York. It explains the dark logic behind police brutality, the trials of prisoner reentry and the inhumanity of New York's homeless shelters\"--Provided by publisher.
Book
MONOPSONY IN LABOR MARKETS
Researchers’ interest in monopsony has increased in recent years. This article reviews the accumulating evidence that employers have considerable monopsony power. It summarizes the application of this idea to explaining the impact of minimum wages and immigration, in anti-trust, and in understanding how to model the determinants of earnings in matched employer–employee data sets and the implications for inequality and the labor share.
Journal Article