Archive

Archive for the ‘labor’ Category

Are Bankers Worth Their Pay? Evidence from a Talent Measure

October 31, 2014 Comments off

Are Bankers Worth Their Pay? Evidence from a Talent Measure (PDF)
Source: Harvard Business School Working Papers

This paper investigates empirically the source of the wage premium in the finance industry. We exploit the ranking in a competitive examination to build a precise measure of talent. By using a comprehensive compensation survey among an educational elite, we show that wage returns to talent are relatively high in the finance industry. This higher sensitivity to talent explains both the finance wage premium and its evolution.

About these ads

The Federal Civil Service Workforce: Assessing the Effects on Retention of Pay Freezes, Unpaid Furloughs, and Other Federal-Employee Compensation Changes in the Department of Defense

October 31, 2014 Comments off

The Federal Civil Service Workforce: Assessing the Effects on Retention of Pay Freezes, Unpaid Furloughs, and Other Federal-Employee Compensation Changes in the Department of Defense
Source: RAND Corporation

Planners and policymakers must be able to assess how compensation policy, including pay freezes and unpaid furloughs, affects retention. This study begins to extend the dynamic retention model (DRM) — a structural, stochastic, dynamic, discrete-choice model of individual behavior — to federal civil service employment. Models are developed and estimated,using 24 years of data, and then used to simulate the effects of pay freezes and unpaid furloughs. A permanent three-year pay freeze decreases the size of the retained General Service (GS) workforce with at least a baccalaureate degree by 7.3 percent in the steady state. A temporary pay freeze with pay immediately restored has virtually no impact on retention. When pay is restored after ten years, the retained GS workforce falls by 2.8 percent five years after the pay freeze and 3.5 percent ten years after it. An unpaid furlough, similar to the six-day federal furlough in 2013, has no discernible effect on retention. For all subgroups of GS employees for which the model is estimated, the model fit to the actual data is excellent, and all of the model parameter estimates are statistically significant. In future work, the DRM could be extended to provide empirically based simulations of the impact of other policies on retention; to estimate effects on other occupational areas, other pay systems, or specific demographic groups; or to create a “total force” model (military and civilian) of DoD retention dynamics and the effects of compensation on those dynamics.

New From the GAO

October 30, 2014 Comments off

New GAO Reports
Source: Government Accountability Office

1. Pension Plan Valuation: Views on Using Multiple Measures to Offer a More Complete Financial Picture. GAO-14-264, September 30.
http://www.gao.gov/products/GAO-14-264
Highlights – http://www.gao.gov/assets/670/666288.pdf

2. DOD Business Systems Modernization: Additional Enhancements Are Needed for Army Business System Schedule and Cost Estimates to Fully Meet Best Practices. GAO-14-470, September 30.
http://www.gao.gov/products/GAO-14-470
Highlights – http://www.gao.gov/assets/670/666294.pdf

3. Federal Real Property: More Useful Information to Providers Could Improve the Homeless Assistance Program. GAO-14-739, September 30.
http://www.gao.gov/products/GAO-14-739
Highlights – http://www.gao.gov/assets/670/666258.pdf

4. VA Health Care: Management and Oversight of Consult Process Need Improvement to Help Ensure Veterans Receive Timely Outpatient Specialty Care. GAO-14-808, September 30.
http://www.gao.gov/products/GAO-14-808
Highlights – http://www.gao.gov/assets/670/666249.pdf
Podcast – http://www.gao.gov/multimedia/podcasts/666528

5. Energy Policy: Information on Federal and Other Factors Influencing U.S. Energy Production and Consumption from 2000 through 2013. GAO-14-836, September 30.
http://www.gao.gov/products/GAO-14-836
Highlights – http://www.gao.gov/assets/670/666271.pdf

6. Disability Compensation: Review of Concurrent Receipt of Department of Defense Retirement, Department of Veterans Affairs Disability Compensation, and Social Security Disability Insurance. GAO-14-854R, September 30.
http://www.gao.gov/products/GAO-14-854R

7. DOD Space Systems: Additional Knowledge Would Better Support Decisions about Disaggregating Large Satellites. GAO-15-7, October 30.
http://www.gao.gov/products/GAO-15-7
Highlights – http://www.gao.gov/assets/670/666715.pdf

Canada’s pay gap

October 30, 2014 Comments off

Canada’s pay gap
Source: Canadian Centre for Policy Alternatives

A new CCPA study, Narrowing the Gap: The difference pubic sector wages make, compares the wages of full-time public and private sector workers and finds significant gaps in the wages of women, aboriginal workers, and visible minority workers. Those gaps are bigger in the private sector in every instance:

  • University educated aboriginal workers make 44% less than their non-aboriginal peers in the private sector. In the public sector, their wage gap shrinks to 14%.
  • University educated women working in the private sector earn 27% less than men. Their wage gap in the public sector is 18%.
  • University educated visible minority workers take home 20% less than their non-visible minority counterparts. In the public sector, their wage gap is 12%.

Salaries are higher in the public sector precisely for those groups of people who experience the greatest discrimination in the private sector—because the public sector goes further in correcting those discriminatory practices. The result is not higher wages but rather a more equitable system of pay.

Study Reveals a Compelling Wage Garnishment Profile

October 30, 2014 Comments off

Study Reveals a Compelling Wage Garnishment Profile
Source: ADP

Wage garnishment – the legal recovery of debt through the seizure of employee pay – is increasing in the United States. Since 2005, garnishments are up 121% in Phoenix; 55% in Atlanta since 2004; and 30% in Cleveland, between 2008 and 2009. The increase apparently stems from a growing population of debtors, and creditors who are more likely to sue to recover money they have lent and is overdue. To supply employers with accurate, detailed information to help them understand and react to the challenges of debt recovery, the ADP Research Institute®, a specialized group within ADP®, studied 13 million active employees, ages 16 and older in 2013. The study delves into aggregated, anonymous payroll data, highlighting a U.S. wage garnishment profile that is revealed across multiple categories, ranging from industries to size of business. The garnishment rate represents the proportion of employees having their wages garnished in that particular category.

Boosting the Life Chances of Young Men of Color

October 30, 2014 Comments off

Boosting the Life Chances of Young Men of Color
Source: MDRC

Despite progress on many fronts, young men of color still face many obstacles to success in American society and suffer disproportionately from economic and social disadvantage. In recent years, foundations and state and local governments have launched major initiatives to address this pressing issue. For example, in 2011, the City of New York created the Young Men’s Initiative, a $42-million annual program, supported by Bloomberg Philanthropies and the Open Society Foundation, to invest in the success of the city’s young men of color. In February of this year, the Obama Administration announced “My Brother’s Keeper,” a multimillion-dollar push by the government, foundations, and businesses to “build ladders of opportunity and unlock the full potential of boys and young men of color.”

In light of the momentum building to improve the fortunes of young men of color, this review takes a look at what is known about this population and highlights programs that are shown by rigorous research to be making a difference. It first examines the special challenges and struggles of these young men in the labor market, including problems related to their disproportionate involvement in the criminal justice system and their experiences in the educational system. A growing number of young men of color have become disconnected from the positive systems, institutions, and pathways designed to help people achieve success — high school diplomas, enrollment in and completion of postsecondary education or training, and ultimately career ladders leading to well-paying jobs.

Given these facts, the natural next question is: What can be done? Does this group of young men constitute, as some have labeled them, a “lost generation”? Or are there interventions that can provide real hope and real results? Can the nation’s institutions do a better job of increasing educational and labor market opportunity? Is there, in fact, a way to move away from deficit-focused characterizations of young men of color to ones that recognize and build on their resilience and strengths?

The second section of the paper reviews the results from high-quality, randomized controlled trials involving young men of color, some conducted by MDRC and some by other groups. It highlights a number of promising interventions, casting doubt on the conventional wisdom that nothing can be done.

2014 Minimum Wage by State

October 30, 2014 Comments off

2014 Minimum Wage by State
Source: National Conference of State Legislatures

Summary

  • Minimum wages will go up in nine states on Jan. 1, 2015 because of indexed increases in their state law: Arizona, Colorado, Florida, Missouri, Montana, New Jersey, Ohio, Oregon, and Washington.
  • 38 states introduced minimum wage bills during the 2014 session; 34 states considered increases to the state minimum wage.
    Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Michigan, Minnesota, Rhode Island, Vermont, West Virginia and D.C. have enacted increases during the 2014 session.
  • As of Aug. 1, 2014, 23 states and D.C. have minimum wages above the federal minimum wage.
  • 18 states, Guam, and the Virgin Islands have minimum wages the same as the federal minimum wage of $7.25.
  • 3 states, American Samoa, and Puerto Rico have minimum wages below the federal minimum wage (the federal minimum thus applies).
  • 1 state, New Hampshire, repealed their state minimum wage in 2011, but left the reference to the federal minimum wage.
  • 5 states have not established a state minimum wage.
Follow

Get every new post delivered to your Inbox.

Join 946 other followers