On the employment effect of noncompliance with the minimum wage law

A major result of the economic literature on minimum wage noncompliance is that a competitive employer who opts not to comply with the minimum wage law will employ less labor than he would have in the absence of a law. The reason for this is that noncompliance entails the risk of getting caught and punished, consequently raising the marginal cost of labor to the employer. An implicit assumption underlying this result is that noncompliance does not affect the free market wage rate facing the competitive employer. The present note shows that noncompliance will bring about a fall in the market wage rate and that if employers and workers are risk neutral, the market wage rate will fall in a way that leaves the marginal cost of labor intact. Consequently, the enactment of a minimum wage law, if not accompanied by sufficient enforcement to induce compliance, will have no effect on the level of employment.     

Medicare program; hospice wage index--HCFA. Final rule

This final rule establishes a methodology to update the wage index used to adjust Medicare payment rates for hospice care. It also includes the new wage index, to be effective October 1, 1997. The wage index is used to reflect local differences in wage levels. A new wage index is needed because the index currently applied is based on 1981 wage and employment data and has not been updated since 1983. The methodology is based on the recommendations of a negotiated rulemaking advisory committee comprised of persons who represent interests affected by the hospice rules.     

Evidence on gender wage differentials in Greece

The paper studies the earnings differential between genders in Greece employing quantile regression analysis and applying a variant of the selection-adjusted Oaxaca and Ransom (1994) decomposition methods to explain the components of the wage differentials. The results suggest that, in Greece, substantial differences in wages between men and women can be identified. Decomposing the wage gap between genders the results show that the difference in wages is attributed mainly to the unexplained part and to a lesser extent to the employee’s endowment. In all deciles of the wage distribution the wage differentials between genders are not explained by differences in the productive characteristics of the employed but rather they constitute the unexplained part of the wage differential.

Medicare program; hospice wage index--HCFA. Notice

This notice announces the annual update to the hospice wage index as required by 42 CFR 418,306(c). This update is effective October 1, 1998. The wage index is used to reflect local differences in wage levels. The hospice wage index methodology and values are based on recommendations of a negotiated rulemaking advisory committee and were originally published in the Federal Register on August 8, 1997. This update is the second year of a 3-year transition period. The second transition year begins October 1, 1998 and ends September 30, 1999.     

Medicare program; hospice wage index for fiscal year 2008. Final rule

This final rule sets forth the hospice wage index for fiscal year 2008. This final rule also revises the methodology for updating the wage index for rural areas without hospital wage data and provides clarification of selected existing Medicare hospice regulations and policies.     

从工资构成到工资定义:观念转换与定义重构

因国家对工资总量宏观调控所延伸的工资构成制度成为司法实践中判断是否属于工资的重要依据,其优点是简单,其弊端是逻辑上存有缺陷,其结果是工资成为约定的名义工资、劳动者权益受损及用人单位行为脱法。工资立法应当明确工资的法律定义,在观念上从工资由工资、奖金、绩效、补贴等组成的工资总额构成转换为工资定义的形式要素和工资内容的逻辑结构,实现对价观念与具体认定标准的统一;在制度上实现工资与非工资的区分,为厘清经济补偿基数、最低工资、社保工资基数、税基工资等提供规范基础。     

Medicare program; hospice wage index; corrections--HCFA. Notice; correction notice

In the October 5, 1998 issue of the Federal Register (63 FR 53446), we published a notice announcing the annual update to the hospice wage index. The wage index is used to reflect local differences in wage levels. That update was effective October 1, 1998 and is the second year of a 3-year transition period. This notice corrects errors made in that document.     

Specification of dynamic wage-price relations in Poland (1980–1991)

This paper focuses on the analysis of wage-price relationships during the period 1980–1991 in Poland. The dynamics of wage and price series under radical structural changes are examined, as well as the impact of earlier sharp price increases. The process of wages-to-prices adjustment both in the long- and short-term is analysed. The hypothesis that the introduction of economic reform (at the beginning of 1990) would result in a tendency towards the stabilization of real wages is investigated. This is done through integration and cointegration analysis of wage and price series with special attention being paid to the problems arising from theI(2) character of the variables investigated. The concept of polynomial cointegration is applied to formulate error correction terms for the short-run model of wages. The computations have been made using quarterly data. The results reflect an inhomogeneity of the period investigated, especially the effects of the introduction of economic reform at the beginning of 1990. The nonstationarity of real wages is confirmed, but not their tendency towards stabilization.     

Wage determination in late socialism: The case of Poland

Does economic transition necessitate a profound change in the inter-industry wage structure? This paper argues that principles of wage determination in centrally planned economies were not basically different from those prevailing in market economies. Even if the center became involved in wage setting, reward for human capital and the compensating differential had to be taken into consideration. Moreover, market power led to rent-sharing via wage bargaining and efficiency wages. Hence, this paper claims that wages in socialist economies were determined by similar factors to those in market economies. This is supported by comparison of inter-industry wage structures between socialist and capitalist countries and by results of the estimation of the wage equation for Poland. There is a noticeable degree of similarity in wage structures generated by both systems.     

Medicare program; hospice wage index for fiscal year 2009. Final rule

This final rule sets forth the hospice wage index for fiscal year 2009. In addition, this final rule finalizes the policy to phase out the Medicare hospice budget neutrality adjustment factor, and clarifies two wage index issues pertaining to the definition of rural and urban areas and multi-campus hospital facilities.     

Recent employment and expenditure trends in city police departments in the United States

Trends in employment and expenditures in thirty-three major city police departments in the United States are separated into two groups and examined for the years 1959 through 1973. Among the items considered are: the size of the growth in city expenditures for the police on an absolute basis and in relation to expenditures for the provision of other services; changes in expenditures for salaries and wages and for the various types of fringe benefits; salary and wage increases for sworn police employees and for supervisory personnel, in inflated and in constant prices; and changes in the size and composition of police work forces. A number of interesting patterns emerge from this analysis and offer the basis for some inferences on possible future disputes and conflicts in this area.     

The other breadwinners: The mobilization of secondary wage earners in early twentieth-century black families

This study examines black families' reliance on secondary wage earners in Atlanta, GA during the early twentieth century (1900 and 1936). In periods of economic prosperity and decline, two-parent black families routinely relied on the employment of mothers, children, and extended kin to supplement the family income. These other breadwinners had different positions within the black family economy, and families' reliance on them was affected by diverse, albeit complementary factors. The employment of mothers and children was affected by economic need and the demands associated with the family life cycle. The presence of working relatives in extended family households was affected by the age of relatives, household size, and, to a limited degree, the ages of the host families' children.     

Incarceration and the Legitimate Labor Market: Examining Age‐Graded Effects on Employment and Wages

Over the past 30 years, the U.S. inmate population has increased dramatically, and the penal system has acquired growing attention in accounts of recent trends in economic stratification. As the prison system has expanded, its population has aged; incarceration rates have risen sharpest among older age groups. A large body of research documents differences in criminal offending and incarceration over the life course, but little attention has been paid to how the effects of spending time in prison depend on the timing of incarceration in the life course. Using state administrative data that provide significant variance in the age of offenders, this article investigates how the timing of incarceration in the life course influences its effects on post‐release employment and wages. We do not find consistent evidence that incarceration effects vary by age at admission. Instead, incarceration appears to have important consequences for employment and wage outcomes regardless of when individuals are admitted to prison. Even the most motivated offenders suffer sizeable and significant wage penalties and, over time, decreased likelihood of employment. These findings underscore the relevance of legal and institutional shifts associated with carceral expansion and the aging of the inmate population for life course theories of criminal desistance, accounts of labor market inequality, and prisoner reentry programs.     

Medicare program; hospice wage index; correction--HCFA. Correction notice

This document corrects the final rule published August 8, 1997 (62 FR 42859), that established a methodology to update the wage index used to adjust Medicare payment rates for hospice care included in the new wage index, to be effective October 1, 1997. This notice corrects the wage index entry for Cherokee, GA.     

How much does it cost to be a scientist?

We examine the academe–industry wage gap. Once self-selection and different personal characteristics of academic and industrial scientists have been taken into account the wage gap narrows from 28 to 13 %. The counterfactual wage faced by an academic scientist increases with time spent on development and decreases with time spent on research. This finding challenges the idea of a solely negative relationship between science and wages. We further find that preferences for science augment the relationship between research orientation and wages. Overall, the results have implications for policy makers that aim to increase development oriented research activities at universities, individual scientists thinking about whether to pursue a career in industry or academe, and managers trying to hire academic scientists.     

China's State-Owned Enterprises in the First Reform Decade: An Analysis of a Declining Monopsony

We study the evolution of employment and wage outcomes in Chinese SOEs during the first decade of economic reforms, using a panel of data for almost 1000 enterprises covering the years 1980–90. Unlike the 1990s, which were marked by growing labor redundancy in the SOE sector, we find that CPE-fostered capital-intensity remained so extreme during the 1980s that workers' marginal products exceeded their full wages, just as in a classical monopsony outcome. Consistent with reasoning about the impact of competition upon monopsony, however, we find the marginal product-wage gap declined in the face of market-oriented reforms, and that monopsony was weakest where the state sector's shares of industrial output and enterprises were lowest, and for smaller enterprises and enterprises managed by lower levels of government. Our analysis also supports Xu and Zhuang's (1996) finding that bonus payments increased enterprises' revenues by more than it did their costs.     

The Malthusian intermezzo: Women's wages and human capital formation between the late Middle Ages and the demographic transition of the 19th century

The paper offers a new explanation for ‘the great conundrum’, the acceleration of population growth in England in the second half of the 18th century. It is argued that it was not only population growth that was ‘different’ in England, but the stagnation of the rise of literacy and of human capital in general, seems to be an anomaly of this period. This ‘conundrum’ has been explained in the following way. It is demonstrated that in England the gender wage gap increased a lot during the early modern period, which was caused by: (a) the switch from post Black Death labour scarcity to labour surplus, which in particular harmed the economic position of women, and (b) changes in the structure of agriculture, leading to the rise of large-scale, capital intensive and labour extensive farms, which had a very limited demand for female (wage) labour. This is also suggested by the fact that on the Continent (in the Netherlands) a much smaller decline of female wages occurred, because there family farms continued to be quite important. Moreover, the decline of English wages had important effects on its demographic development. It helps to explain the decline of the average age of marriage of in particular women between 1600 and 1800, and the related increase in fertility that occurred in this period — resulting in a much faster rate of population growth after 1750 than elsewhere in Western-Europe. It also helps to explain the stagnation in human capital formation that occurred during the 18th and early 19th century — again a feature peculiar for the English development in these years. The explanation of ‘the great conundrum’ is therefore intimately linked to the changing position of women on the labour market and within marriage.     

Medicare program; mid-year FY 1991 changes to the inpatient hospital prospective payment system--HCFA. Final rule with comment period

This final rule with comment period implements several provisions of section 4002 of the Omnibus Budget Reconciliation Act of 1990 (Pub. L. 101-508) that affect Medicare payment for inpatient hospital services and that take effect with discharges occurring on or after January 1, 1991. The provisions of section 4002 of Public Law 101-508 affect the following: The standardized amounts, the hospital wage index, rural counties whose hospitals are deemed urban, and hospitals that serve a disproportionate share of low income patients.     

Medicare program; changes to the hospital inpatient prospective payment systems and fiscal year 2006 rates. Final rule

We are revising the Medicare hospital inpatient prospective payment systems (IPPS) for operating and capital-related costs to implement changes arising from our continuing experience with these systems. In addition, in the Addendum to this final rule, we describe the changes to the amounts and factors used to determine the rates for Medicare hospital inpatient services for operating costs and capital-related costs. We also are setting forth rate-of-increase limits as well as policy changes for hospitals and hospital units excluded from the IPPS that are paid in full or in part on a reasonable cost basis subject to these limits. These changes are applicable to discharges occurring on or after October 1, 2005, with one exception: The changes relating to submittal of hospital wage data by a campus or campuses of a multicampus hospital system (that is, the changes to Sec. 412.230(d)(2) of the regulations) are effective on August 12, 2005. Among the policy changes that we are making are changes relating to: The classification of cases to the diagnosis-related groups (DRGs); the long-term care (LTC)-DRGs and relative weights; the wage data, including the occupational mix data, used to compute the wage index; rebasing and revision of the hospital market basket; applications for new technologies and medical services add-on payments; policies governing postacute care transfers, payments to hospitals for the direct and indirect costs of graduate medical education, submission of hospital quality data, payment adjustment for low-volume hospitals, changes in the requirements for provider-based facilities; and changes in the requirements for critical access hospitals (CAHs).     

Medicare program; changes to the FY 1999 hospital inpatient prospective payment wage index and standardized amounts resulting from approved requests for wage data revisions. Health Care Financing Administration (HCFA), HHS. Final rule

This final rule implements revised wage index values, geographic adjustment factors, operating standardized amounts, and capital Federal rates for hospitals subject to the inpatient prospective payment system. These changes result from requests made by hospitals in response to a final rule with comment period published in the Federal Register on November 19, 1998. These revisions will be implemented on a prospective basis.