Regressive effects of regulation on wages

Public Choice - A growing body of literature analyzing the distributive consequences of regulation suggests that regulation may have particularly detrimental effects on lower-income households....     

The interaction of monetary policy and wages

This paper focuses on the interaction of monetary policy and wage formation in economies with strong labor unions. Government and unions are viewed as endogenous utility maximizers and the macroeconomic consequences of their strategic interaction are explored with the aid of some elements of simple game theory. Specifically, it is shown (a) how labor unions adjust wages to prices so as to maximize their utility following changes in monetary policy; (b) how the effectiveness of monetary policy is circumscribed without necessarily being nullified by the utility-maximizing reactions of unions; and (c) how the interplay of government and unions can create a persistent tendency towards inflation and unemployment simultaneously.     

国家为什么要补偿犯罪被害人——西方国家被害人补偿的理论争论

被害人国家补偿的理论基础在西方国家一直是争论不休，主要存在社会契约／保护失败理论、风险共担／社会保险理论、社会福利／道义责任理论、政治动机或政治工具理论等四种学说。归纳并梳理这些观点对我国被害人补偿制度的构建具有十分重要的意义。     

The reservation wages of Social Security Disability Insurance beneficiaries

There exists a lot of research on the reservation wages of the unemployed as a determinant of unemployment duration. Little is known about the reservation wages of those who are not in the labor force but might be potential labor force returnees, such as Social Security Disability Insurance (DI) beneficiaries. The main objective of this article is to assess what can be learned from the subjective reservation wages of DI beneficiaries. Using the New Beneficiary Data System (NBDS), the article assesses the magnitudes of reservation wages compared to the last wage earned and the benefit amount, as well as the determinants of reservation wages in a regression framework. The NBDS is unique in that it provides the reservation wages and the work history of DI beneficiaries before and after joining the DI rolls. The article has several noteworthy results and policy implications: *Data show that a significant portion of beneficiaries report being likely to accept a job if offered one. Based on the NBDS, 13 percent of DI beneficiaries who did not work since joining the rolls in 1981-1982 reported in 1991 that they would be willing to work if offered a job and provided their reservation wages. *DI beneficiaries do not appear to price themselves out of the labor market. Half of them would want a wage that is 80 percent or less of the last wage earned before receiving DI. It is estimated that approximately 7 percent of long-term DI beneficiaries may potentially return-to-work if they search for jobs and have a wage offer distribution with a mean at 80 percent of their last wage. *The nonlabor income in addition to the benefit is positively and significantly associated with the reservation wage, while the benefit amount per se is not. However, this result needs to be treated with caution given that nonlabor income is endogenous to the model. *Heterogeneity exists between persons still under the DI program and those that have moved to the Old-Age program. The subsamples of persons who have shifted to the Old-Age program and those who are still under the DI program have median reservation wage to the last wage ratios of 0.69 and 0.93, respectively. A significantly lower reservation wage for persons who have moved to the Old-Age program was also found in a regression framework. This heterogeneity between the two groups may result in part from the different program characteristics both groups face, for instance, in terms of benefit termination and Medicare eligibility rules. *Subjective reservation wage data can be useful to study populations that are out of the labor force. This article is innovative in that it focuses on a group of persons who are typically considered as being out of the labor force, and therefore are not asked reservation wages in general household surveys such as the Current Population Survey. It would be of great interest to collect more reservation wage data for DI beneficiaries in a longitudinal data set to expand this analysis, for instance, to assess conclusively the effects of changing program characteristics on reservation wages and return-to-work outcomes as beneficiaries transition to the Old-Age program or as new return-to-work programs are put in place.     

The demand for military expenditures: An international comparison

Earlier studies have explained inter-country variations in the share of GNP devoted to military expenditures by international spillovers and by differences in the threat of attack related to relative incomes. In this paper, we use the theory of public choice to explain these differences. We attempt to measure the importance of both international spillovers and relative incomes, along with two other factors: the tax-price elasticity of demand and economies of scale in the consumption of security. We find that international spillovers are significant and positive, that the income elasticity of demand is greater than unity, that the tax-price elasticity of demand explains part of observed inter-country differences, and that there are considerable economies of scale in the consumption of military spending. Finally, between 1960 and 1975, there was apparently a substantial increase in the value which each country derived from a dollar of military spending by its allies. This phenomenon, which seems related to the increased importance of deterrent weapons, has tended to induce individual alliance members to reduce the share of their national income devoted to defense.     

The military and the prospects for Spanish democracy 1

Involvement of the army in Spanish politics derived from the weakness of political institutions, but it was accentuated by the caste‐like qualities the army acquired. Defence of career interests supplies a clear element of continuity and helps to explain the emergence of Franco's dictatorship. That regime retained military support by skilfully managing professional interests, but the price of army support was the retention of outdated military structures. Reform is now desired by the new generation of army officers, and military allegiance to democratic institutions may partly depend on satisfying these aspirations. In the long run, however, the resolution of this issue depends on developments in the national polity.     

Public and private sector wages interactions in a general equilibrium model

It is common wisdom that public sector wages are not determined in the same way as private sector wages. At the same time, the empirical evidence available for OECD countries finds a strong positive correlation between public and private sector wages. In this paper, we develop a model that is consistent with a political economy view of the determination of public sector wages and employment, while being consistent with the said empirical evidence. Public finance constraints are crucial: In booms, governments expand employment and wages, while in downturns, lack of tax revenues forces the government to cut back the wage bill.     

North Korea's military power

Recent diplomacy has made the situation on the Korean Peninsula less tense than it was a year ago. But given North Korea’s dismal track record in complying with agreements, the country’s military capabilities remain a concern. Apparent confidence-building steps may be public gestures calculated to prolong negotiations or deflect international criticism. There has been no significant change in North Korea's military posture.     

Mechanisms for rent transfers: Subcontracting among military aircraft manufacturers

Models of prototyped and non-prototyped competitions for prime contracts from the U.S. defense department suggest that the latter are much more vulnerable to bid-rigging than are the former. Subcontracting data reveal that pairs of firms who have been rivals in major non-prototyped competitions have a larger number of subcontracts with one another than do other pairs of firms. The analysis concludes that subcontracts may serve as vehicles for division of the spoils of collusive bidding on prime contracts.     

Minimum wages and the economic well‐being of single mothers

Using pooled cross‐sectional data from the 1992 to 2005 March Current Population Survey (CPS), this study examines the relationship between minimum wage increases and the economic well‐being of single mothers. Estimation results show that minimum wage increases were ineffective at reducing poverty among single mothers. Most working single mothers were not affected by minimum wage hikes because they already earned wages above state and federal minimum wages. And less‐educated single mothers who were affected did not see a rise in net income because of negative employment and hours effects. For this low‐skilled population, a 10 percent increase in the minimum wage was associated with an 8.8 percent reduction in employment and an 11.8 percent reduction in annual hours worked. © 2008 by the Association for Public Policy Analysis and Management