Why Did College Wage Premium Growth Slow Down? An Analysis with Endogenous Supply of College Workers

Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating profits per employee increased average wages and wage inequality. The data imply that increasing profits, perhaps unsurprisingly, induce a wage premium. The data further imply that employees earning high incomes at the outset had the highest wage increase percentage-wise. Decreasing operating profits per employee had opposite but less robust effects on average wages and wage inequality. Panel data Granger causality tests finally showed that average wages, but not wage inequality, reversely and positively affect operating profits per employee.

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Working from Home, Wages, and Regional Inequality in the Light of COVID-19

Jahrbücher für Nationalökonomie und Statistik ◽

10.1515/jbnst-2020-0030 ◽

2021 ◽

Vol 0 (0) ◽

Author(s):

Michael Irlacher ◽

Michael Koch

Keyword(s):

Regional Variation ◽

Wage Premium ◽

Regional Inequality ◽

Economic Policies ◽

Remote Work ◽

Positive Relation ◽

Policy Makers ◽

Working From Home ◽

The Mean ◽

Career Survey

Abstract We use the most recent wave of the German Qualifications and Career Survey to reveal a substantial wage premium in a Mincer regression for workers performing their job from home. The premium accounts for more than 10% and persists within narrowly defined jobs as well as after controlling for workplace characteristics. In a next step, we provide evidence on substantial regional variation in the share of jobs that can be done from home in Germany. Our analysis reveals a strong, positive relation between the share of jobs with working from home opportunities and the mean worker income in a district. Assuming that jobs with the opportunity of remote work are more crisis proof, our results suggest that the COVID-19 pandemic might affect poorer regions to a greater extent. Hence, examining regional disparities is central for policy-makers in choosing economic policies to mitigate the consequences of this crisis.

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Auctions of divisible goods with endogenous supply

Economics Letters ◽

10.1016/s0165-1765(01)00465-7 ◽

2001 ◽

Vol 73 (1) ◽

pp. 29-34 ◽

Cited By ~ 83

Author(s):

Kerry Back ◽

Jaime F. Zender

Keyword(s):

Divisible Goods ◽

Endogenous Supply

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Firm Size and Employment during the Pandemic

Socius Sociological Research for a Dynamic World ◽

10.1177/2378023121992601 ◽

2021 ◽

Vol 7 ◽

pp. 237802312199260

Author(s):

Ken-Hou Lin ◽

Carolina Aragão ◽

Guillermo Dominguez

Keyword(s):

United States ◽

Labor Market ◽

Firm Size ◽

The United States ◽

Market Concentration ◽

Job Security ◽

Wage Premium ◽

Small Enterprises ◽

Policy Responses ◽

Industrial Context

Previous studies have established that firm size is associated with a wage premium, but the wage premium has declined in recent decades. The authors examine the risk for unemployment by firm size during the initial outbreak of coronavirus disease 2019 in the United States. Using both yearly and state-month variation, the authors find greater excess unemployment among workers in small enterprises than among those in larger firms. The gaps cannot be entirely attributed to the sorting of workers or to industrial context. The firm size advantage is most pronounced in sectors with high remotability but reverses in the sectors most affected by the pandemic. Overall, these findings suggest that firm size is linked to greater job security and that the pandemic may have accelerated prior trends regarding product and labor market concentration. They also point out that the initial policy responses did not provide sufficient protection for workers in small and medium-sized businesses.

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A Note on the Law and Economics of Stolen Valor

The American Economist ◽

10.1177/0569434517736287 ◽

2017 ◽

Vol 63 (1) ◽

pp. 115-119

Author(s):

Dennis L. Weisman

Keyword(s):

Supreme Court ◽

First Amendment ◽

Military Service ◽

Law And Economics ◽

Wage Premium ◽

The Supreme Court ◽

The Law ◽

Jel Classifications

The issue of stolen valor concerns the act of trading on false claims of being awarded valorous military service medals. The Supreme Court overturned the 2005 Stolen Valor Act, largely on First Amendment grounds, ruling that even false speech deserves some protection. Misrepresentation that devalues the reputation of medals for valor may not violate the revised statute despite reducing the expected wage premium associated with being awarded the medal for valor and discouraging investment in military effort. Hence, the law and economics of stolen valor are in some conflict. JEL Classifications: D82, H1, K23

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