The impact of labor freedom on geographic cost of living differentials

2017 ◽  
Vol 6 (3) ◽  
pp. 385-395
Author(s):  
Richard Cebula ◽  
James E. Payne ◽  
Donnie Horner ◽  
Robert Boylan
Keyword(s):  
Labor Market ◽  
State Level ◽  
The State ◽  
Annual Data ◽  
Significant Finding ◽  
Cost Of Living ◽  
Content Type ◽  
The Usa ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of labor market freedom on state-level cost of living differentials in the USA using cross-sectional data for 2016 after allowing for the impacts of economic and quality of life factors. Design/methodology/approach The study uses two-stage least squares estimation controlling for factors contributing to cost of living differences across states. Findings The results reveal that an increase in labor market freedom reduces the overall cost of living. Research limitations/implications The study can be extended using panel data and alternative measures of labor market freedom. Practical implications In general, the finding that less intrusive government and greater labor freedom are associated with a reduced cost of living should not be surprising. This is because less government intrusion and greater labor freedom both inherently allow markets to be more efficient in the rationalization of and interplay with forces of supply and demand. Social implications The findings of this and future related studies could prove very useful to policy makers and entrepreneurs, as well as small business owners and public corporations of all sizes – particularly those considering either location in, relocation to, or expansion into other markets within the USA. Furthermore, the potential benefits of the National Right-to-Work Law currently under consideration in Congress could add cost of living reductions to the debate. Originality/value The authors extend the literature on cost of living differentials by investigating whether higher amounts of state-level labor market freedom act to reduce the states’ cost of living using the most recent annual data available (2016). That labor freedom has a systemic efficiency impact on the state-level cost of living is a significant finding. In our opinion, it is likely that labor market freedom is increasing the efficiency of labor market transactions in the production and distribution of goods and services, and acts to reduce the cost of living in states. In addition, unlike previous related studies, the authors investigate the impact of not only overall labor market freedom on the state-level cost of living, but also how the three sub-indices of labor market freedom, as identified and measured by Stansel et al. (2014, 2015), impact the cost of living state by state.

Real estate agent dynamism and licensing entry barriers

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel J. Ingram ◽  
Aaron Yelowitz
Keyword(s):  
Labor Market ◽  
Real Estate ◽  
Housing Prices ◽  
Occupational Licensing ◽  
Content Type ◽  
Percent Increase ◽  
The Usa ◽  
Real Estate Agents ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the labor market entry of real estate agents in the USA and the potential effect of occupational licensing on entry. Design/methodology/approach Data from the 2012 to 2017 American Community Survey are linked to local housing price fluctuations from the Federal Housing Finance Agency for 100 large metro areas. The cost of entry associated with occupational licensing for new real estate agents is carefully measured for each market and interacted with housing fluctuations to investigate the role for barriers to entry. Findings A 10 percent increase in housing prices is associated with a 4 percent increase in the number of agents. However, increased license stringency reduces the labor market response by 30 percent. The impact of licensing is stronger for women and younger workers. Originality/value This work contributes to the growing literature investigating the impact of occupational licensing on labor supply and entry in the USA, as well as potential impacts of regulation on dynamism and entrepreneurship. To the authors’ knowledge, this study is also the first to quantify the cost of occupational licensing in the real estate industry.

scholarly journals Earnings quality and the cost of equity capital: evidence on the impact of legal background

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Hassan Ahmed ◽  
Yasean Tahat ◽  
Yasser Eliwa ◽  
Bruce Burton
Keyword(s):  
Earnings Quality ◽  
Institutional Ownership ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
The Usa ◽  
The Uk ◽  
The Cost ◽  
The Impact

Purpose Earnings quality is of great concern to corporate stakeholders, including capital providers in international markets with widely varying regulatory pedigrees and ownership patterns. This paper aims to examine the association between the cost of equity capital and earnings quality, contextualised via tests that incorporate the potential for moderating effects around institutional settings. The analysis focuses on and compares evidence relating to (common law) UK/US firms and (civil law) German firms over the period 2005–2018 and seeks to identify whether, given institutional dissimilarities, significant differences exist between the two settings. Design/methodology/approach First, the authors undertake a review of the extant literature on the link between earnings quality and the cost of capital. Second, using a sample of 948 listed companies from the USA, the UK and Germany over the period 2005 to 2018, the authors estimate four implied cost of equity capital proxies. The relationship between companies’ cost of equity capital and their earnings quality is then investigated. Findings Consistent with theoretical reasoning and prior empirical analyses, the authors find a statistically negative association between earnings quality, evidenced by information relating to accruals and the cost of equity capital. However, when they extend the analysis by investigating the combined effect of institutional ownership and earnings quality on financing cost, the impact – while negative overall – is found to vary across legal backdrops. Research limitations/implications This paper uses institutional ownership as a mediating variable in the association between earnings quality and the cost of equity capital, but this is not intended to suggest that other measures may be of relevance here and additional research might usefully expand the analysis to incorporate other forms of ownership including state and foreign bases. Second, and suggestive of another avenue for developing the work presented in the study, the authors have used accrual measures of earnings quality. Practical implications The results are shown to provide potentially important insights for policymakers, creditors and investors about the consequences of earnings quality variability. The results should be of interest to firms seeking to reduce their financing costs and retain financial viability in the wake of the impact of the Covid-19 pandemic. Originality/value The reported findings extends the single-country results of Eliwa et al. (2016) for the UK firms and Francis et al. (2005) for the USA, whereby both reported that the cost of equity capital is negatively associated with earnings quality attributes. Second, in a further increment to the extant literature (particularly Francis et al., 2005 and Eliwa et al., 2016), the authors find the effect of institutional ownership to be influential, with a significantly positive impact on the association between earnings quality and the cost of equity capital, suggesting in turn that institutional ownership can improve firms’ ability to secure cheaper funding by virtue of robust monitoring. While this result holds for the whole sample (the USA, the UK and Germany), country-level analysis shows that the result holds only for the common law countries (the UK and the USA) and not for Germany, consistent with the notion that extant legal systems are a determining factor in this context. This novel finding points to a role for institutional investors in watching and improving the quality of financial reports that are valued by the market in its price formation activity.

Examining the impact of political candidates on hotel revenue

2019 ◽  
Vol 3 (1) ◽  
pp. 36-53
Author(s):  
Amanda Belarmino ◽  
Elizabeth A. Whalen
Keyword(s):  
Design Methodology ◽  
The State ◽  
Small Scale ◽  
Structured Interviews ◽  
Political Candidates ◽  
Bandwagon Effect ◽  
Content Type ◽  
Political Candidate ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of a charismatic political candidate on hotel revenue in the USA, particularly in their home states, through the lens of the bandwagon effect. Previous researchers have found that political primaries have a significant impact on hotel revenue due to travel to those states; however, there has yet to be an examination of the impact of popular political candidates on hotel revenue. Design/methodology/approach This research examined the impact of Bernie Sanders’ campaign on hotel revenue in the state Vermont due to the relatively stable demand experienced in that market. First, the researchers used forecasting methodology and t-tests to determine if there was a significant increase in hotel revenue during the time of the Sanders’ campaign for the state and for Burlington, Vermont, his campaign headquarters. Then, eight semi-structured interviews were conducted with hoteliers in Vermont to determine if the Sanders’ campaign was responsible for the observed changes. Findings While the hotel revenue for the state was not significantly different than what would be expected, the hotel revenue in Burlington did see a significant increase. Hoteliers did attribute an increased awareness of the destination and some specific instances of travelers to Sanders’ campaign. Originality/value This is the first study to date to demonstrate the influence of a political candidate on hotel revenue and demonstrated that the bandwagon effect can impact hotel revenue. For hoteliers, it demonstrates that increased destination awareness can impact behavioral intentions on a small scale.

Sodium menu labelling: priorities for research and policy

2020 ◽  
pp. 1-10
Author(s):  
Eleanore Alexander ◽  
Lainie Rutkow ◽  
Kimberly A Gudzune ◽  
Joanna E Cohen ◽  
Emma E McGinty
Keyword(s):  
Local Level ◽  
State Level ◽  
The State ◽  
Rigorous Research ◽  
The Usa ◽  
Legal Databases ◽  
State And Local ◽  
The Impact ◽  
The Relationship ◽  
Research And Policy

Abstract Objective: To understand the different Na menu labelling approaches that have been considered by state and local policymakers in the USA and to summarise the evidence on the relationship between Na menu labelling and Na content of menu items offered by restaurants or purchased by consumers. Design: Proposed and enacted Na menu labelling laws at the state and local levels were reviewed using legal databases and an online search, and a narrative review of peer-reviewed literature was conducted on the relationship between Na menu labelling and Na content of menu items offered by restaurants or purchased by consumers. Setting: Local and state jurisdictions in the USA Participants: Not applicable. Results: Between 2000 and 2020, thirty-eight laws – eleven at the local level and twenty-seven at the state level – were proposed to require Na labelling of restaurant menu items. By 2020, eight laws were enacted requiring chain restaurants to label the Na content of menu items. Five studies were identified that evaluated the impact of Na menu labelling on Na content of menu items offered by restaurants or purchased by consumers in the USA. The studies had mixed results: two studies showed a statistically significant association between Na menu labelling and reduced Na content of menu items; three showed no effects. Conclusion: Data suggest that Na menu labelling may reduce Na in restaurant menu items, but further rigorous research evaluating Na menu labelling effects on Na content of menu items, as well as on the Na content in menu items purchased by consumers, is needed.

Legislative discrepancies: an analysis of Missouri’s current human trafficking laws and the need to improve its legal protection of victims

2020 ◽  
Vol 13 (2) ◽  
pp. 143-158
Author(s):  
Rachel Kappler ◽  
Arduizur Carli Richie-Zavaleta
Keyword(s):  
Public Health ◽  
Human Rights ◽  
Best Practice ◽  
Legal Protection ◽  
State Level ◽  
The State ◽  
Safe Harbor ◽  
Content Type ◽  
The Usa

Purpose Human trafficking (HT) is a local, national and international problem with a range of human rights, public health and policy implications. Victims of HT face atrocious abuses that negatively impact their health outcomes. When a state lacks protective laws, such as Safe Harbor laws, victims of HT tend to be seen as criminals. This paper aims to highlight the legal present gaps within Missouri’s anti-trafficking legislation and delineates recommendations for the legal protection of victims of HT and betterment of services needed for their reintegration and healing. Design/methodology/approach This case-study is based on a policy analysis of current Missouri’s HT laws. This analysis was conducted through examining current rankings systems created by nationally and internationally recognized non-governmental organizations as well as governmental reports. Additionally, other state’s best practice and law passage of Safe Harbor legislations were examined. The recommendations were based on human rights and public health frameworks. Findings Missouri is a state that has yet to upgrade its laws lately to reflect Safe Harbor laws. Constant upgrades and evaluations of current efforts are necessary to protect and address HT at the state and local levels. Public health and human rights principles can assist in the upgrading of current laws as well as other states’ best-practice and integration of protective legislation and diversion programs to both youth and adult victims of HT. Research limitations/implications Laws are continually being updated at the state level; therefore, there might be some upgrades that have taken place after the analysis of this case study was conducted. Also, the findings and recommendations of this case study are limited to countries that are similar to the USA in terms of the state-level autonomy to pass laws independently from federal law. Practical implications If Safe Harbor laws are well designed, they have greater potential to protect, support and assist victims of HT in their process from victimization into survivorship as well as to paving the way for societal reintegration. The creation and enforcement of Safe Harbor laws is a way to ensure the decriminalization process. Additionally, this legal protection also ensures that the universal human rights of victims are protected. Consequently, these legal processes and updates could assist in creating healthier communities in the long run in the USA and around the world. Social implications From a public health and human rights perspectives, communities in the USA and around the world cannot provide complete protection to victims of HT until their anti-trafficking laws reflect Safe Harbor laws. Originality/value This case study, to the best of the authors’ knowledge, is a unique analysis that dismantles the discrepancies of Missouri’s current HT laws. This work is valuable to those who create policies at the state level and advocate for the protection of victims and anti-trafficking efforts.

How does the estate tax affect the number of firms?

2014 ◽  
Vol 3 (1) ◽  
pp. 96-117 ◽  
Author(s):  
Pavel A. Yakovlev ◽  
Antony Davies
Keyword(s):  
Small Firms ◽  
State Level ◽  
Small Business Owners ◽  
Tax Burden ◽  
Estate Tax ◽  
Content Type ◽  
The Usa ◽  
The Rich ◽  
The Impact ◽  
Number Of Firms

Purpose – The purpose of this paper is to estimate the effect of the combined (Federal and state) estate, inheritance, and gift (EIG) tax burden per decedent on the number of firms in the USA. Design/methodology/approach – Estimates are based on a longitudinal panel of 50 American states from 1988 to 2006. Findings – The paper finds that the growth in the EIG tax burden per decedent significantly reduces the growth in the number of firms, especially small firms. The higher dissolution rate among small firms can be attributed to the asymmetric liquidity effect, which limits the ability of small business owners to raise the funds needed to pay the estate tax without liquidating their estates. Practical implications – The estimates suggest that the reductions in EIG taxes, brought about by the passage of 2001 EGTRRA, have lead to a higher growth in the number of firms, ceteris paribus. Social implications – As of this writing, the future of the Federal estate tax looks uncertain. Policymakers should note that the estate tax lowers competition and economic growth, which hurts both the poor and the rich. Originality/value – This study is the first to examine the impact of the combined (Federal and state) EIG tax burden on the number of firms using state-level panel data.

Local corruption and local stock returns

2019 ◽  
Vol 26 (4) ◽  
pp. 1065-1077
Author(s):  
Serkan Karadas ◽  
William McAndrew ◽  
Minh Tam Tammy Schlosky
Keyword(s):  
Stock Returns ◽  
Design Methodology ◽  
State Level ◽  
The State ◽  
Second Step ◽  
Market Size ◽  
Content Type ◽  
The Usa ◽  
The Relationship ◽  
Local Stock

Purpose The purpose of this study is to investigate the effect of corruption on stock returns in the USA. In particular, this study examines the relationship between corruption in a state (i.e. local corruption) and stock returns of firms headquartered in that state (i.e. local returns). Design/methodology/approach This paper uses the Fama–MacBeth two-step regressions. In the first step, the authors estimate the coefficients on the market, size, value and momentum factors for individual stocks. In the second step, they use those coefficients along with the corruption score of the state where stocks are headquartered to explain stock returns. Findings This paper finds that corruption in a state adversely affects stock returns of firms headquartered in that state. It further documents that the effect of corruption on stock returns is limited to geographically concentrated firms. Originality/value To the best of the authors’ knowledge, this paper is the first to document the effect of state-level corruption on individual stock returns in the USA using the Fama–MacBeth regressions. This study contributes to the literature by documenting the effect of local corruption on local stock returns in a low corruption country.

The long run impact of immigration on labor market in an advanced economy

2015 ◽  
Vol 42 (4) ◽  
pp. 356-367
Author(s):  
Faridul Islam ◽  
Saleheen Khan
Keyword(s):  
Labor Market ◽  
Gdp Per Capita ◽  
Advanced Economy ◽  
Content Type ◽  
Dynamic Relationship ◽  
Long Run ◽  
The Usa ◽  
Short Run ◽  
Per Capita ◽  
The Impact

Purpose – The purpose of this paper is to examine the dynamic relationship among immigration rate, GDP per capita, and and real wage rates in the USA. Design/methodology/approach – The paper implements the Johansen-Juselius (1990, 1992) cointegration technique to test for a long-run relationship; and for short-run dynamics the authors apply Granger causality tests under the vector error-correction model. Findings – The results show that the long-run causality runs from GDP per capita to immigration, not vice versa. Growing economy attracts immigrants. The authors also find that immigration flow depresses average weekly earnings of the natives in the long-run. Originality/value – The authors are not aware of any study on the USA addressing the impact of immigrants on labor market using a tripartite approach by explicitly incorporating economic growth. It is therefore important to pursue a theoretically justified empirical model in search of a relation to resolve on apparent immigration debate.

The impact of strategy on public sector set-aside programs: the case of the state of Ohio

2018 ◽  
Vol 18 (1) ◽  
pp. 31-49 ◽  
Author(s):  
Ian Y. Blount ◽  
Jay Seetharaman ◽  
Trevor L. Brown
Keyword(s):  
Program Implementation ◽  
Regression Models ◽  
Implementation Strategy ◽  
State Level ◽  
The State ◽  
State Agencies ◽  
Linear Regression Models ◽  
Content Type ◽  
Program Strategy ◽  
The Impact

Purpose The purpose of this study is to examine the impact of program strategy on the implementation of the efficacy of a procurement set-aside program at the state level. Design/methodology/approach This study examines the impact of program implementation strategy across two administrations considering the most compelling alternative arguments for what drives agency purchasing through contracts with MBEs. Findings The results of mixed effects linear regression models on the procurement expenditures of 70 state agencies in Ohio from 2008-2015 show significantly higher rates of procurement expenditures with MBEs under the Kasich administration. Originality/value These results provide support for the argument that changes in program implementation strategy led to substantive increases in the use of MBEs by state agencies in Ohio.

Culture and annual report readability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minyoung Noh
Keyword(s):  
Design Methodology ◽  
Annual Report ◽  
State Level ◽  
The State ◽  
Annual Reports ◽  
Litigation Risk ◽  
Content Type ◽  
State Culture ◽  
The Usa ◽  
Positive Effect

Purpose This study aims to examine the effect of state culture on the readability of narrative disclosures in annual reports based on firms located in all 50 states of the USA. Design/methodology/approach The author uses the cultural tightness and looseness (Harrington and Gelfand 2014) index at the state level and the BOG index (Bonsall and Miller, 2017) as the primary measures of annual report readability. Findings Using US data from 1994 to 2019, this study finds that the state level of cultural tightness in which firms are located positively affects firms’ annual report readability. In addition, the study finds that the positive effect of cultural tightness on annual report readability is pronounced in subgroups with high litigation risk while the result does not hold with subgroups that have low litigation risk. The results are robust when alternative proxies for annual report readability are used and historical location and the states in which firms are incorporated are considered. Originality/value This study contributes to the growing literature on the determinants of readability in annual report because firms’ narrative disclosure in annual report varies depending on the information environment, litigation risk, embedded in each state culture where firms are located.

Sign in / Sign up

Export Citation Format

Share Document