How Labor Market Institutions Matter for Worker Compensation

Labor markets deviate substantially from the competitive ideal, and policies and institutions affect workers’ outcomes. Over the last 45 years, the dramatic increase in compensation of high earners and weak or stagnant growth for low and middle earners have shone a spotlight on the ways in which labor market institutions sometimes work to the detriment of lower-paid workers. In this article, we survey several institutions—minimum wages, private sector unions, noncompete agreements, and occupational licensing—considering how they have evolved in ways that affect workers’ outcomes, given that the labor market is characterized by uneven distribution of market gains. We describe the modern labor market as one that substantially features alternative work arrangements and labor market concentration, and we consider the implications of this for public policy. Those policies, along with the surveyed institutions, are the focus of our final section that discusses key options for improving worker outcomes.

Learning From Coworkers

We investigate learning at the workplace. To do so, we use German administrative data that contain information on the entire workforce of a sample of establishments. We document that having more‐highly‐paid coworkers is strongly associated with future wage growth, particularly if those workers earn more. Motivated by this fact, we propose a dynamic theory of a competitive labor market where firms produce using teams of heterogeneous workers that learn from each other. We develop a methodology to structurally estimate knowledge flows using the full‐richness of the German employer‐employee matched data. The methodology builds on the observation that a competitive labor market prices coworker learning. Our quantitative approach imposes minimal restrictions on firms' production functions, can be implemented on a very short panel, and allows for potentially rich and flexible coworker learning functions. In line with our reduced‐form results, learning from coworkers is significant, particularly from more knowledgeable coworkers. We show that between 4 and 9% of total worker compensation is in the form of learning and that inequality in total compensation is significantly lower than inequality in wages.

Trade Competition and Worker Compensation: Why Do Some Receive More than Others?

Dealing with the distributional consequences of trade liberalization has become one of the key challenges facing developed democracies. Governments have created compensation programs to ease labor market adjustment, but these resources tend to be distributed highly unevenly. What accounts for the variation? Looking at the largest trade adjustment program in existence, the US’ Trade Adjustment Assistance (TAA), we argue that petitions for compensation are largely driven by legislative attitudes. When legislators express negative views of TAA, individuals in their districts become less likely to petition for, and receive, compensation. This effect is especially pronounced in Republican districts. An underprovision of TAA, in turn, renders individuals more likely to demand other forms of government support, like in-kind medical benefits. We use roll-call votes, bill sponsorships, and floor speeches to measure elite attitudes, and we proxy for the demand for trade adjustment using economic shocks from Chinese import competition. In sum, we show how the individual beliefs of political elites can be self-fulfilling.

Ergonomic Improvement of Material Handling By Redesigning Trolley

Ergonomic improvement in assembly line is the thing which the term generally refers to the scientific method of creating a favorable work and work space which demands to the ability of the workers. Ergonomic configuration is important to guarantee high efficiency, keep away from alignment and damage, and lift fulfillment and confidence among the workforce. More than satisfied and fulfilled workforce, work cells made of ergonomic structure offer noteworthy incentive to producers in terms of lesser output and worker compensation premiums. The system will be reactive or proactive when applying ergonomics. In reactive ergonomics, identifying current problems and take measures to correct them. In proactive ergonomics, seeing areas that can be improved and fix the issues before they become large problems. Each organization ensures the safety and comfortable environment of their workers, in turn they believe in increased quality and in performance ergonomically designed work cells and working equipments are the key area to be concentrated. In this study the problem is analyzed through pareto chart and cause and effect diagram one issue is taken as pallet transfer manual because of this manual pallet transferring workers facing issue like back pain and for this is a solution of ergonomically designed trolley to reduce worker fatigue and the productivity was improved by using major problem solving tools.

Delegating performance evaluation

We study optimal incentive contracts with multiple agents when performance is evaluated by a reviewer. The reviewer may be biased in favor of the agents, but the degree of bias is unknown to the principal. We show that a contest, which is a contract in which the principal fixes a set of prizes to be allocated to the agents, is optimal. By using a contest, the principal can commit to sustaining incentives despite the reviewer's potential leniency bias. The optimal effort profile can be uniquely implemented by an all‐pay auction with a cap. Our analysis has implications for various applications, such as the design of worker compensation or the allocation of research grants.

Impact of Fair-Trade Certification on Worker Compensation in Indian Tea Estates: Interactions with The Plantations Labour Act

Study of impact of Fair-Trade certification on worker compensation in Indian tea estates and its interactions with the Plantations Labour Act, 1951 <br>

Impact of Fair-Trade Certification on Worker Compensation in Indian Tea Estates: Interactions with The Plantations Labour Act

Study of impact of Fair-Trade certification on worker compensation in Indian tea estates and its interactions with the Plantations Labour Act, 1951 <br>

O2C.1 Worker compensation: are epidemiological studies fit for purpose?

IntroductionEvery year, large numbers of workers have an injury at work or develop a work-related disease. A range of worker compensation systems exist across countries for which epidemiological studies potentially provide critical evidence. This paper discusses the adequacy of current epidemiological research for this purpose.MethodsCompensation schemes need to identify the occupational circumstances, or dose, that increase (e.g. double) the risks of the disease, and to define these so they can be administered effectively by decision-makers who lack epidemiological experience. Large studies or meta-analyses with effective control for confounders, adequate exposure assessment, and clear case definition are (ideally) required.ResultsAlthough epidemiological studies may show consistent evidence of an increased health risk from an occupational exposure, definitions of exposure are often unsuitable for converting into an appropriate exposure schedule for a compensation scheme. Direct measurements of occupational exposure are usually scarce and not available for individual workers; both claimants, perhaps, assessors would find these measurements difficult to access and use. Exposures defined by industry or job title, particularly with a qualifying time-period, although perceived by epidemiologists as rather simplistic, are more straightforward to use, e.g. ‘osteoarthritis in miners who have worked 10 or more years underground’. If quantitative exposure measurements are unavailable, epidemiologists often define qualitative metrics such as ‘high’, ‘medium’, or ‘low’ or develop more complex semi-qualitative exposure metrics such as ‘exposed or not’ at a given level of certainty or probability; intensity of exposure based on expert judgement of proximity to the substance and effectiveness of control procedures. Application of these in a compensation scheme may be problematical.DiscussionEpidemiology plays a vital role in ensuring workers are compensated for work-related ill-health. Epidemiological study design, exposure metrics and primary and subsidiary analyses should be tailored to directly support compensation schemes.

Who Profits from Patents? Rent-Sharing at Innovative Firms*

This article analyzes how patent-induced shocks to labor productivity propagate into worker compensation using a new linkage of U.S. patent applications to U.S. business and worker tax records. We infer the causal effects of patent allowances by comparing firms whose patent applications were initially allowed to those whose patent applications were initially rejected. To identify patents that are ex ante valuable, we extrapolate the excess stock return estimates of Kogan et al. (2017) to the full set of accepted and rejected patent applications based on predetermined firm and patent application characteristics. An initial allowance of an ex ante valuable patent generates substantial increases in firm productivity and worker compensation. By contrast, initial allowances of lower ex ante value patents yield no detectable effects on firm outcomes. Patent allowances lead firms to increase employment, but entry wages and workforce composition are insensitive to patent decisions. On average, workers capture roughly 30 cents of every dollar of patent-induced surplus in higher earnings. This share is roughly twice as high among workers present since the year of application. These earnings effects are concentrated among men and workers in the top half of the earnings distribution and are paired with corresponding improvements in worker retention among these groups. We interpret these earnings responses as reflecting the capture of economic rents by senior workers, who are most costly for innovative firms to replace.

Worker compensation status increases the risk for presence of pain in the contralateral knee at final follow-up after arthroscopic knee surgery

ObjectivesIn patients undergoing arthroscopic knee surgery, it is not uncommon to complain of pain in both the ipsilateral and the contralateral knee. The primary aim of the present study was to evaluate the prevalence of contralateral knee pain in patients undergoing arthroscopic knee surgery. The secondary aim was to identify risk factors for contralateral knee pain in this population.MethodsAll patient who underwent arthroscopic knee surgery between 2015 and 2017 were included. The prevalence of pain in the contralateral knee prior to and at the final follow-up after ipsilateral knee surgery was assessed. The following potential risk factors for contralateral knee pain were evaluated: age, gender, worker comp status, duration of symptoms, pre-operative diagnosis, activity level, history of a fall, use of a walking aid and findings during surgery.ResultsA total of 142 patients met the inclusion criteria. The average age was 45±11 years, 104 patients (73%) were men. Prior to the surgery on the ipsilateral knee, only 1 patient (<1%) reported pain in the contralateral knee, which increased to 113 patients (80%) at final follow-up surgery. Of the assessed risk factors, only worker compensation status was significant for the development of contralateral knee pain (OR 2.93 95% CI 1.08 to 7.95, p=0.040).ConclusionPain in the contralateral knee is uncommon prior to arthroscopic knee surgery, but common after. The risk for the development of contralateral knee pain is increased if the index injury was workers compensation related.Level of evidenceLevel IV case series.