Essays in Labour Economics: Evidence from Voluntary and Mandatory Wage Floors in the United States and New Zealand

2021 ◽  
Author(s):  
◽  
Jaime Lancaster
Keyword(s):  
New Mexico ◽  
New Zealand ◽  
Minimum Wage ◽  
Low Income ◽  
Fixed Effects ◽  
Local Minimum ◽  
The United States ◽  
Living Wage ◽  
Earnings Growth ◽  
The Impact

<p>This thesis expands the literature on minimum and living wages by investigating local minimum wage ordinances and voluntary living wage programs. This thesis is presented as three distinct papers; the first explores a county-wide minimum wage ordinance in New Mexico, USA, while papers 2 and 3 explore New Zealand’s voluntary living wage program. In the United States, local minimum wage ordinances are growing in popularity, and research is emerging on their effects. Setting minimum wages at the local level is politically easier than enacting Federal legislation, and local minimum wages may be better targeted to local economic conditions. In my first chapter, “Local Minimum Wage Laws and Labour Market Outcomes: Evidence from New Mexico,” I use fixed effects and synthetic control analysis to uncover the effects of a local minimum wage law on the Albuquerque/Bernalillo region of New Mexico, with a focus on how provisions exempting tipped workers affect gains in earnings. My findings reveal that these provisions can lead to reductions in hourly wages for workers exempted from the minimum wage even when the labour market is not harmed overall. I find that the minimum wage ordinance did not reduce teen employment but that it served to increase the supply of teen labour leading to an increase in the teen unemployment rate.  The second and third papers in this thesis address the voluntary living wage program in New Zealand. In the first quantitative work on New Zealand’s living wage, I utilize data from Statistics New Zealand’s Integrated Data Infrastructure (IDI) to explore several facets of the living wage experience for employers and employees. In the second paper, “The New Zealand Living Wage: Earnings, Labour Costs and Turnover,” I investigate the characteristics of New Zealand living wage firms and use fixed effects to examine the impact of living wage certification on employment, worker earnings and turnover. My results provide some evidence for increases in labour costs and worker earnings following certification but find that this change is driven by changes in small firms that employ few workers. I find no evidence of a reduction in turnover.  In my final chapter, “Who Benefits from Living Wage Certification?” I investigate the distribution of benefits from the living wage based on an employees’ pre-treatment earnings, time of hire and whether or not they remained employed with the living wage firm. To do this, I utilize a worker-level panel dataset containing the full earnings history of all workers that were employed for a living wage or matched control firm between January 2014 and December 2015. I use fixed effects models containing fixed effects for worker, firm and month to compare patterns of earnings growth for workers hired before certification (‘pre-hires’) with those hired after certification (‘joiners’) and those who left their living wage job but remained in the workforce (‘leavers’). I also estimate the impact of living wage employment on the earnings of low-income workers. I find that the financial benefit of the living wage accrues almost exclusively to workers hired after certification and to low income workers. In addition, my analysis on the worker-level panel suggests that overall earnings growth in living wage firms lagged that in control firms over the observation period. This result is driven by relative declines in earnings for living wage workers in large firms and is attributed to increases in the published living wage rate that lags behind wage growth in the relevant segments of the job market.</p>

Essays in Labour Economics: Evidence from Voluntary and Mandatory Wage Floors in the United States and New Zealand

2021 ◽  
Author(s):  
◽  
Jaime Lancaster
Keyword(s):  
New Mexico ◽  
New Zealand ◽  
Minimum Wage ◽  
Low Income ◽  
Fixed Effects ◽  
Local Minimum ◽  
The United States ◽  
Living Wage ◽  
Earnings Growth ◽  
The Impact

<p>This thesis expands the literature on minimum and living wages by investigating local minimum wage ordinances and voluntary living wage programs. This thesis is presented as three distinct papers; the first explores a county-wide minimum wage ordinance in New Mexico, USA, while papers 2 and 3 explore New Zealand’s voluntary living wage program. In the United States, local minimum wage ordinances are growing in popularity, and research is emerging on their effects. Setting minimum wages at the local level is politically easier than enacting Federal legislation, and local minimum wages may be better targeted to local economic conditions. In my first chapter, “Local Minimum Wage Laws and Labour Market Outcomes: Evidence from New Mexico,” I use fixed effects and synthetic control analysis to uncover the effects of a local minimum wage law on the Albuquerque/Bernalillo region of New Mexico, with a focus on how provisions exempting tipped workers affect gains in earnings. My findings reveal that these provisions can lead to reductions in hourly wages for workers exempted from the minimum wage even when the labour market is not harmed overall. I find that the minimum wage ordinance did not reduce teen employment but that it served to increase the supply of teen labour leading to an increase in the teen unemployment rate.  The second and third papers in this thesis address the voluntary living wage program in New Zealand. In the first quantitative work on New Zealand’s living wage, I utilize data from Statistics New Zealand’s Integrated Data Infrastructure (IDI) to explore several facets of the living wage experience for employers and employees. In the second paper, “The New Zealand Living Wage: Earnings, Labour Costs and Turnover,” I investigate the characteristics of New Zealand living wage firms and use fixed effects to examine the impact of living wage certification on employment, worker earnings and turnover. My results provide some evidence for increases in labour costs and worker earnings following certification but find that this change is driven by changes in small firms that employ few workers. I find no evidence of a reduction in turnover.  In my final chapter, “Who Benefits from Living Wage Certification?” I investigate the distribution of benefits from the living wage based on an employees’ pre-treatment earnings, time of hire and whether or not they remained employed with the living wage firm. To do this, I utilize a worker-level panel dataset containing the full earnings history of all workers that were employed for a living wage or matched control firm between January 2014 and December 2015. I use fixed effects models containing fixed effects for worker, firm and month to compare patterns of earnings growth for workers hired before certification (‘pre-hires’) with those hired after certification (‘joiners’) and those who left their living wage job but remained in the workforce (‘leavers’). I also estimate the impact of living wage employment on the earnings of low-income workers. I find that the financial benefit of the living wage accrues almost exclusively to workers hired after certification and to low income workers. In addition, my analysis on the worker-level panel suggests that overall earnings growth in living wage firms lagged that in control firms over the observation period. This result is driven by relative declines in earnings for living wage workers in large firms and is attributed to increases in the published living wage rate that lags behind wage growth in the relevant segments of the job market.</p>

scholarly journals Are Teacher Absences Worth Worrying About in the United States?

2009 ◽  
Vol 4 (2) ◽  
pp. 115-149 ◽  
Author(s):  
Charles T. Clotfelter ◽  
Helen F. Ladd ◽  
Jacob L. Vigdor
Keyword(s):  
North Carolina ◽  
Public Schools ◽  
Low Income ◽  
Fixed Effects ◽  
The United States ◽  
Elementary Grades ◽  
School Year ◽  
Teacher Absences ◽  
The Impact ◽  
Income Quartile

Using detailed data from North Carolina, we examine the frequency, incidence, and consequences of teacher absences in public schools as well as the impact of a policy designed to reduce absences. The incidence of teacher absences is regressive: when schools are ranked by the fraction of students receiving free or reduced price lunches, teachers in the lowest income quartile average almost one extra sick day per school year than teachers in the highest income quartile, and schools with persistently high rates of teacher absence were much more likely to serve low-income than high-income students. In regression models incorporating teacher fixed effects, absences are associated with lower student achievement in elementary grades. Finally, we present evidence that the demand for discretionary absences is price elastic. Our estimates suggest that a policy intervention that simultaneously raises teacher base salaries and broadens financial penalties for absences could both raise teachers' expected incomes and lower districts' expected costs.

scholarly journals Fair/Living/Family/ Minimum/Social Wages: Historical and Recent New Zealand Debates

1970 ◽  
Author(s):  
Prue Hyman
Keyword(s):  
New Zealand ◽  
Minimum Wage ◽  
The United States ◽  
Government Support ◽  
Living Wage ◽  
Paper Briefly ◽  
Earnings Differentials ◽  
International Trends ◽  
Historical Outline ◽  
Employer Responsibility

This paper briefly discusses usage of the following terms with respect to wages in New Zealand: fair, living, family, minimum and social wages. A historical outline is followed by consideration of some arguments used by various interest groups, particularly with respect to changes to the minimum wage in recent years. Noting international trends towards increasing earnings differentials, it discusses why a living wage is less central to New Zealand wage campaigns than in the United States. It argues that social justice advocates will and should continue to work on a combination of employer responsibility and government support for those on low wages - with a realistic minimum wage part of a package which could also include the concept of a living wage, explicitly or at least implicitly.

Demonstrating Nutrient Cost Gradients: A Brooklyn Case Study

2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi
Keyword(s):  
Low Income ◽  
Energy Content ◽  
Food Selection ◽  
The United States ◽  
United States Department ◽  
Micronutrient Deficiencies ◽  
Caloric Density ◽  
Low Income Families ◽  
The Cost ◽  
The Impact

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.

Does the second wave of COVID-19 undermine corporate immunity? International evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huy Viet Hoang ◽  
Cuong Nguyen ◽  
Khanh Hoang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Fixed Effects ◽  
Management Strategies ◽  
The United States ◽  
Least Square ◽  
Content Type ◽  
The Impact ◽  
Second Wave ◽  
Practical Implications

PurposeThis study compares the impact of the COVID-19 pandemic on stock returns in the first two waves of infection across selected markets, given built-in corporate immunity before the global outbreak.Design/methodology/approachThe data are collected from listed firms in five markets that have experienced the second wave of COVID-19 contagion, namely the United States (US), Australia, China, Hong Kong and South Korea. The period of investigation in this study ranges from January 24 to August 28, 2020 to cover the first two COVID-19 waves in selected markets. The study estimates the research model by employing the ordinary least square method with fixed effects to control for the heterogeneity that may confound the empirical outcomes.FindingsThe analysis reveals that firms with larger size and more cash reserves before the COVID-19 outbreak have better stock performance under the first wave; however, these advantages impede stock resilience during the second wave. Corporate governance practices significantly influence stock returns only in the first wave as their effects fade when the second wave emerges. The results also suggest that in economies with greater power distance, although stock price depreciation was milder in the first wave, it is more intense when new cases again surge after the first wave was contained.Practical implicationsThis paper provides practical implications for corporate managers, policymakers and governments concerning crisis management strategies for COVID-19 and future pandemics.Originality/valueThis study is the first to evaluate built-in corporate immunity before the COVID-19 shock under successive contagious waves. Besides, this study accentuates the importance of cultural understanding in weathering the ongoing pandemic across different markets.

scholarly journals School's Out

Elements ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 39-52
Author(s):  
Charlie Power
Keyword(s):  
United States ◽  
Low Income ◽  
Education System ◽  
The United States ◽  
Current Evidence ◽  
Learning Loss ◽  
Summer Learning ◽  
Elementary And Secondary Education ◽  
Heated Debate ◽  
The Impact

The debate over the future direction of elementary and secondary education in the United States is fractious and contentious. Many of these are rooted in concerns over disparities in financial circumstances and race. While the full extent of the gaps, in addition to the United States' mediocre education system relative to other industrialized nations, has been a subject of frequent research and heated debate, one crucial component of this divide has yet to be analyzed: summer learning loss. This paper will closely analyze published literature in order to analyze the impact of summer education loss. Additionally, this paper will argue that summer learning varies by socioeconomic status (SES), with low-income populations gradually regressing over the years. This phenomenon has ramifications on students' achievement and explains the disparities that accumulate over a student's educational career. Finally, based on current evidence, this paper will make policy recommendations on how to change the current education system to better address summer's inherent inequities. 

scholarly journals In Support of a 'Living Wage': Research on International and Danish Trends and Issues of 'Working Poor'.

2013 ◽  
Author(s):  
Erling Rasmussen ◽  
Jens Lind
Keyword(s):  
New Zealand ◽  
Labour Market ◽  
Minimum Wage ◽  
Service Sector ◽  
Limit State ◽  
State Regulation ◽  
Working Poor ◽  
Living Wage ◽  
Paid Work ◽  
Starting Point

In May 2012, a campaign started in support of a New Zealand ‘living wage’. This happened in light of many New Zealand workers receiving wages at or just above the statutory minimum wage and that several fast-growing sectors continue to establish many low paid jobs. While the paper’s starting point is the New Zealand ‘living wage’ debate, the issues discussed have been part of international debates about the existence and consequences of low paid work. These debates have highlighted that some countries have been better at containing low paid work. On this background, this paper focuses on the trends and issues surrounding ‘working poor’ in Denmark. As detailed, the Danish labour market has succeeded in having a relatively low level of ‘working poor’. This has even happened in several service sector industries renowned for their propensity to create low paying jobs. However, the paper also questions the stability of the so-called Danish Model based on an open labour market with large in- and outflows of migrants and with a reliance on collective bargaining/agreements, with limit state regulation and, in particular, no statutory minimum wage.

scholarly journals The Determinants of International Student Demand in New Zealand and the OECD

2021 ◽  
Author(s):  
◽  
Logan Page
Keyword(s):  
New Zealand ◽  
International Students ◽  
Fixed Effects ◽  
International Student ◽  
Tertiary Education ◽  
Descriptive Analysis ◽  
University Education ◽  
Export Market ◽  
Student Demand ◽  
The Impact

<p>Tertiary education, once a purely domestic affair, has become an increasingly globalised industry over previous decades. Whilst the international sector has grown to being New Zealand's fourth largest export market (Ministry of Education, 2016), there is a lack of credible research on the demand of international students.    This thesis aims to provide a greater understanding of the determinants of international student demand, both in New Zealand and internationally. I firstly provide a descriptive analysis of the trends in the international student market for New Zealand and 27 OECD countries. Secondly, I use a fixed-effects approach to analyse the demand of international students within New Zealand, using fees data at the course-by-university level. Thirdly, I then generalise this approach to the international market to provide an analysis of the demand for international students travelling to the OECD.    The findings from these analyses imply that the demand for international university education is relatively inelastic. The impact of a marginal increase in fees decreases the number of EFTS/students at a proportion of less than one. Furthermore, this effect is generally not statistically distinguishable from zero.</p>

scholarly journals Food Stamp Participation Among Low-Income Households: Theoretical Considerations of the Impact on the Demand for Food

1975 ◽  
Vol 7 (1) ◽  
pp. 223-231 ◽  
Author(s):  
Ron Mittelhammer ◽  
Donald A. West
Keyword(s):  
World War Ii ◽  
Low Income ◽  
The United States ◽  
Food Stamps ◽  
Food Stamp ◽  
World War ◽  
On Demand ◽  
The Impact ◽  
Theoretical Considerations ◽  
Direct Distribution

The USDA's Food Stamp Program (FSP) is a major item in the department's budget. In effect from 1939 to 1943 and revived as a pilot program in 1961, FSP has grown until, in 1973, it provided nearly $4 billion in food stamps to an average of 12 million persons per month. About 55 percent of the $4 billion is federal subsidy. The program is continuing to expand as a result of a congressional mandate that FSP be in effect nationwide after June 30, 1974. Because of the FSP's growth, questions are now being asked about the program's impact on demand for food in the United States.In its pre-World War II inception, FSP was developed as an alternative to direct distribution of commodities to relief families. Although the objective of improving food consumption among needy households was recognized, FSP was viewed primarily as a method for stimulating demand for farm products.

scholarly journals Tourism under the Early Phase of COVID-19 in Four APEC Economies: An Estimation with Special Focus on SARS Experiences

2020 ◽  
Vol 17 (20) ◽  
pp. 7543
Author(s):  
Bao-Linh Tran ◽  
Chi-Chung Chen ◽  
Wei-Chun Tseng ◽  
Shu-Yi Liao
Keyword(s):  
Hong Kong ◽  
New Zealand ◽  
Fixed Effects ◽  
Negative Impact ◽  
Asia Pacific ◽  
International Tourism ◽  
Special Focus ◽  
Tourism Demand ◽  
Data Set ◽  
The Impact

This study examines how experience of severe acute respiratory syndrome (SARS) influences the impact of coronavirus disease (COVID-19) on international tourism demand for four Asia-Pacific Economic Cooperation (APEC) economies, Taiwan, Hong Kong, Thailand, and New Zealand, over the 1 January–30 April 2020 period. To proceed, panel regression models are first applied with a time-lag effect to estimate the general effects of COVID-19 on daily tourist arrivals. In turn, the data set is decomposed into two nation groups and fixed effects models are employed for addressing the comparison of the pandemic-tourism relationship between economies with and without experiences of the SARS epidemic. Specifically, Taiwan and Hong Kong are grouped as economies with SARS experiences, while Thailand and New Zealand are grouped as countries without experiences of SARS. The estimation result indicates that the number of confirmed COVID-19 cases has a significant negative impact on tourism demand, in which a 1% COVID-19 case increase causes a 0.075% decline in tourist arrivals, which is a decline of approximately 110 arrivals for every additional person infected by the coronavirus. The negative impact of COVID-19 on tourist arrivals for Thailand and New Zealand is found much stronger than for Taiwan and Hong Kong. In particular, the number of tourist arrivals to Taiwan and Hong Kong decreased by 0.034% in response to a 1% increase in COVID-19 confirmed cases, while in Thailand and New Zealand, a 1% national confirmed cases increase caused a 0.103% reduction in tourism demand. Moreover, the effect of the number of domestic cases on international tourism is found lower than the effect caused by global COVID-19 mortality for the economies with SARS experiences. In contrast, tourist arrivals are majorly affected by the number of confirmed COVID-19 cases in Thailand and New Zealand. Finally, travel restriction in all cases is found to be the most influencing factor for the number of tourist arrivals. Besides contributing to the existing literature focusing on the knowledge regarding the nexus between tourism and COVID-19, the paper’s findings also highlight the importance of risk perception and the need of transmission prevention and control of the epidemic for the tourism sector.

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