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We classify the empirical literature on the wage impact of immigration into three groups, where studies in the first two groups estimate different relative effects, and studies in the third group estimate the total effect of immigration on wages. We interpret the estimates obtained from the different approaches through the lens of the canonical model to demonstrate that they are not comparable. We then relax two key assumptions in this literature, allowing for inelastic and heterogeneous labor supply elasticities of natives and the \"downgrading\" of immigrants. “Downgrading” occurs when the position of immigrants in the labor market is systematically lower than the position of natives with the same observed education and experience levels. Downgrading means that immigrants receive lower returns to the same measured skills than natives when these skills are acquired in their country of origin. We show that heterogeneous labor supply elasticities, if ignored, may complicate the interpretation of wage estimates, and particularly the interpretation of relative wage effects. Moreover, downgrading may lead to biased estimates in those approaches that estimate relative effects of immigration, but not in approaches that estimate total effects. We conclude that empirical models that estimate total effects not only answer important policy questions, but are also more robust to alternative assumptions than models that estimate relative effects.

\"This paper calculates the effects of immigration on the wages of native US workers of various skill levels in two steps. In the first step we use labor demand functions to estimate the elasticity of substitution across different groups of workers. Second, we use the underlying production structure and the estimated elasticities to calculate the total wage effects of immigration in the long run. We emphasize that a production function framework is needed to combine own-group effects with cross-group effects in order to obtain the total wage effects for each native group. In order to obtain a parsimonious representation of elasticities that can be estimated with available data, we adopt alternative nested-CES models and let the data select the preferred specification. New to this paper is the estimate of the substitutability between natives and immigrants of similar education and experience levels. In the data-preferred model, there is a small but significant degree of imperfect substitutability between natives and immigrants which, when combined with the other estimated elasticities, implies that in the period from 1990 to 2006 immigration had a small effect on the wages of native workers with no high school degree (between 0.6% and +1.7%). It also had a small positive effect on average native wages (+0.6%) and a substantial negative effect (-6.7%) on wages of previous immigrants in the long run.\" (Author's abstract, IAB-Doku). Die Untersuchung enthält quantitative Daten. Forschungsmethode: empirisch-quantitativ; empirisch; Längsschnitt. Die Untersuchung bezieht sich auf den Zeitraum 1990 bis 2006.

What makes a successful entrepreneur? Using Danish register data, we find strong support for the hypothesis that theoretical skills from schooling and practical skills acquired through wage-work are complementary inputs in the human capital earnings function of entrepreneurs. In fact, we find that schooling only pays off in combination with wagework experience, as the returns to schooling are insignificant when the entrepreneur has no wage-work experience. The results are extremely robust toward more flexible specifications, including fixed-effect estimations dealing with unobserved heterogeneity. Furthermore, the interaction term is negligible for nonentrepreneurs, suggesting that the complementarity between wage-work experience and schooling is a distinctive characteristic of entrepreneurs.

Se estudia el papel de la segregación ocupacional en los bajos salarios entre los inmigrantes mexicanos de primera, segunda y tercera generación en Estados Unidos. Los mexicano-americanos obtienen menores salarios que los negros porque poseen menor capital humano. Respecto a los blancos, sus salarios menores también son producto de sus retornos menores por sus características y porque se encuentran subrepresentados en la cima de la estructura ocupacional. La segregación ocupacional constituye una parte importante de la brecha salarial entre nativos e inmigrantes mexicanos de primera generación. Para generaciones posteriores, la contribución de la segregación ocupacional varía entre grupos y de acuerdo con la descomposición utilizada. This paper studies the role of occupational segregation in explaining the low wages among first, second and third generation Mexican immigrants in the United States. Mexican-Americans earn lower wages than African-Americans mainly because they possess less human capital. With respect to Americans of European descent, their lower wages are also a product of their smaller rewards for skills and underrepresentation at the top of the occupational structure. Occupational segregation constitutes an important part of the wage gap between natives and Mexican-born immigrants. For subsequent generations, the contribution of occupational segregation to the wage gap varies significantly between groups and according to the decomposition used.

Abstract Recent empirical studies have improved methodologies for identifying the causal effects of policies especially on a minimum wage hike. This study identifies causal effects of minimum wage hikes across 47 prefectures in Japan from 2008 to 2010 on employment, average hourly wage, work hours, full-time equivalent employment (FTE), total wage costs, average tenure, separation and new hiring in establishments using a micro dataset of business establishments in restaurant, accommodation, and food takeout and delivery industry. Various regression specifications including controls for time-varying regional heterogeneity are implemented by using the bite of the minimum wage in each establishment. First, this study finds that the effects of a revision of minimum wage on employment and FTE in the establishment are statistically insignificant, but the effects on hourly wages and total wage costs are statistically significant. Subsequently, it considers how the establishments react to the increase in total wage costs caused by the revised minimum wage, and finds that separation from the establishment may decrease, and average tenure of workers may increase.

The rapid decline of German emigration before World War I constitutes a puzzle that traditional explanations have difficulty in solving. The article shows that the social legislation implemented by Bismarck during the 1880s—the most developed at the time—played a key role in this process. Indeed, candidates for migration considered not only the gap between “direct wages” (labor earnings) in the United States and Germany, but also the differential in “indirect wages,” that is, social benefits. In that way, Bismarck's insurance system partly offset low wage rates in Germany and furthered the fall of the emigration rate. O sprecht! warum zogt ihr von dannen?Das Neckartal hat Wein und Korn;Der Schwarzwald steht voll finstrer Tannen,Im Spessart klingt des Ålplers Horn.Wie wird es in den fremden WäldernEuch nach der Heimatberge Grün,Nach Deutschlands gelben Weizenfeldern,Nach seinen Rebenhügeln ziehn!Ferdinand Freiligrath1

A common proposition in welfare state research is that programs financed through dedicated payroll taxes tend to be more durable. This article examines American unemployment insurance (UI) as an exception to this proposition. UI is a self-financed social insurance program whose benefits have been dismantled over time because of an inability to maintain a constant revenue base. The study first examines the long-run decline in UI finances and concludes that changes in UI taxes are associated with the largest declines in state finances. It then examines why more states have not pursued reforms to strengthen UI finances and finds that opponents of more generous UI benefits have generally succeeded in preventing such measures, thus constricting UI finances and gradually retrenching benefits. These findings have implications for those seeking to improve UI solvency, as well as for the study of welfare state retrenchment more generally.

This paper investigates how close to their potential English Premier League Clubs play. Using a deterministic Data Envelopment Analysis Approach, the productive efficiency of 20 teams in the 2000/2001 season is measured and weaknesses of individual teams are disclosed. The sensitivity of results is analyzed with regard to different model specifications and variable combinations.

Often, new technology brings in its train unprecedented problems. As far as computers, e-mail and the internet are concerned, this certainly holds true in many arenas. But there is one aspect of this new technology which does not present additional difficulties: cyber-slacking. The managerial challenges posed by employees using these amenities for job search, shopping sprees, personal relationships, in a word, general goofing off, have long ago already been overcome by employers. There is \"nothing new under the sun\" in at least this one dimension of the computer age.

This book investigates trends in skills demand and supply over the past two decades for insights into ways to build (and use) the critical skills needed to sustain competitiveness of the Philippine economy. Part one of the book investigates trends in demand for skills in the country overall and by sectors, explores its possible determinants, and attempts to identify emerging skills gaps. Part two turns to the analysis of the supply of skills in the country with a focus on the ability of education and training to provide highly skilled labor, keeping workers' skills updated, and providing skills development opportunities for the unskilled. It explores employers' perceptions on the quality of institutions and provides detailed analysis of the main characteristics, outcomes, and challenges in four key (or growing) subsectors of the provision of skills in the country: higher education, postsecondary technical-vocational education, non-formal secondary education, and postemployment training. It concludes with a summary of policy recommendations.