11/18/2018

News

Why Do Women Earn Less Than Men? Evidence from Bus and Train Operators (Job Market Paper)

Even in a unionized environment, where work tasks are similar, hourly wages are identical, and tenure dictates promotions, female workers earn $0.89 on the male-worker dollar (weekly earnings). We use confidential administrative data on bus and train operators from the Massachusetts Bay Transportation Authority (MBTA) to show that the weekly earnings gap can be explained […]

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Seattle’s Fake Free Lunch

A new study of Seattle’s minimum wage is being presented in some corners as a progressive vindication. But the details are pretty much what any Econ 101 student would predict: bad news for young, unskilled workers trying to gain a foothold in the economy. In 2015-16, Seattle phased in a wage floor of $13 an […]

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5 Myths about Income Inequality Debunked

The issue of economic inequality is all the rage these days. It encompasses numerous arguments about a wide range of topics. Let us review and rebut several common ones.

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Workers’ Pay Rises at Fastest Rate in a Decade

Compensation for U.S. workers grew at an accelerating rate in the third quarter, a sign a historically tight labor market is yielding better pay for employees. The employment-cost index, a measure of wages and benefits for civilian workers, rose a seasonally adjusted 0.8% in July through September, the Labor Department said Wednesday. The gain was […]

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Worker-Productivity Gains Coming Up Short in Stronger Economy

Despite strong economic growth and historically low unemployment, a government report released Thursday pointed to an important missing ingredient so far in the U.S. expansion: worker-productivity improvements. Output per hour for workers in nonfarm businesses rose 1.3% in the third quarter from a year earlier, marking the 32nd straight quarter of yearly growth below 2%, […]

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Wages Rise at Fastest Rate in Nearly a Decade as Hiring Jumps

Hiring accelerated in October and the unemployment rate held at a 49-year low, signs of a strengthening labor market that delivered U.S. workers the best pay raises in nearly a decade. U.S. nonfarm payrolls increased a seasonally adjusted 250,000 in October, the Labor Department said Friday. The unemployment rate held steady at 3.7%, matching lowest […]

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Beige Book-October 24, 2018

Economic activity in the Twelfth District continued to expand at a moderate pace during the reporting period of September through early October. Conditions in the labor market tightened noticeably, and wage pressures picked up. Price inflation increased moderately. Sales of retail goods picked up slightly, while activity in consumer and business services was solid. Activity […]

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Minimum Wage Increases and Individual Employment Trajectories

Using administrative employment data from the state of Washington, we use short-duration longitudinal panels to study the impact of Seattle’s minimum wage ordinance on individuals employed in low-wage jobs immediately before a wage increase. We draw counterfactual observations using nearest-neighbor matching and derive effect estimates by comparing the “treated” cohort to a placebo cohort drawn […]

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The $15 Minimum Wage Is Turning Hard Workers Into Black Market Lawbreakers

As Reason chronicled in a feature story in our July 2016 issue, the real world impact of the unionization drive, the lawsuits, and the $15 minimum wage has been mainly to push car washes to automate and to close down. Two years later, there are more unintended consequences. The $15 minimum wage is fostering a […]

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California state worker union accepts contract with 10 percent pay hike

A small California state employee union decided on Thursday that a contract with two more consecutive years of 5 percent raises was too good to pass up in the waning months of Gov. Jerry Brown’s administration. The California Association of Professional Scientists approved the contract by a vote of 802 to 339. It will give […]

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Public Servant Who Made $327,491 in 2017 Asks Us to Support Higher Taxes

Every two years, around this time, political mailers inundate the mailboxes of California’s registered voters. This week, many Sacramento residents received “Vote No on Prop 6″ mailer. Prop 6 is that pesky, subversive citizens ballot initiative that, if approved by voters, will roll back the gas tax. But Prop. 6 isn’t the topic here. Rather, […]

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Just How Much Money Might CalPERS Have to Collect in an Economic Downturn?

How would a downturn affect all of California’s public employee pension systems, the agencies they serve, and the taxpayers who fund them? In a CPC analysis published earlier this year, “How to Assess Impact of a Market Correction on Pension Payments,” the following excerpt provides an estimate: “If there is a 15% drop in pension […]

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Amazon eliminates monthly bonuses and stock grants after minimum wage increase

Amazon garnered praise for raising the minimum wage for its hourly workers to $15 yesterday, but the widely-publicized move also came at the expense of monthly bonuses and stock options. The company explained its decision to shift to a new stock purchase program in the announcement blog post yesterday, citing that hourly employees preferred the […]

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Tax Cuts Provide Limited Boost to Workers’ Wages

U.S. companies are putting savings from the corporate tax cut to use, but only a fraction of it is flowing to employees’ wallets, new data show. In the months after the December tax-code overhaul that lowered the corporate rate to 21% from 35%, dozens of companies such as Walmart Inc.and FedEx Corp. announced one-time bonuses […]

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Employers Choose Bonuses Over Raises

U.S. employers are boosting benefits—including bonuses and vacation time—at a faster pace than salaries, a move that gives them more flexibility to dial back that compensation if the economy turns sour. The cost of benefits for private-sector employers rose 3% in June from a year earlier, while the cost of wages and salaries advanced 2.7%, […]

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