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Reports and Working Papers: Labor Policy

Contract Form, Wage Flexibility and Employment

Thomas Lemieux; W. Bentley MacLeod; Daniel Parent
Working Paper; 2012

The current recession has shown, yet again, that theory and evidence are on a collision course. Competitive labor market theory predicts that downturns should have only modest e ffects on unemployment. A decrease in aggregate demand might lower output and the demand for labor, but this does not necessarily imply higher unemployment. Lower demand for labor leads to lower wages, with the consequence that some individuals might leave the labor market. The remaining workers need only lower their wage demands until suitable employment is found.

The Effects of Housing Assistance on Labor Supply: Evidence from a Voucher Lottery

Brian A. Jacob; Jens Ludwig
American Economic Review; 2012

This study estimates the effects of means-tested housing programs on labor supply using data from a randomized housing voucher wait-list lottery in Chicago. Economic theory is ambiguous about the expected sign of any labor supply response. We find that among working-age, able-bodied adults, housing voucher use reduces labor force participation by around 4 percentage points (6 percent) and quarterly earnings by $329 (10 percent), and increases Temporary Assistance for Needy Families program participation by around 2 percentage points (15 percent).

Wage and Hour Violations in Urban Labour Markets: A Comparison of Los Angeles, New York and Chicago

Ruth Milkman; Ana Luz González ; Peter Ikeler
Industrial Relations; 2012

This article compares violations of minimum wage laws and other labour standards in New York City, Los Angeles and Chicago. Los Angeles has the highest violation rates, due to such factors as its industrial composition and disproportionately large number of small establishments, as well as its vast unauthorised immigrant population. In addition, Los Angeles’ higher rates reflect the stricter legal standards in California. We conclude that, although stronger workplace laws and regulations are crucial, in the absence of effective enforcement, they may fail to prevent workplace violations.

Employers Gone Rogue: Explaining Industry Variation in Violations of Workplace Laws

Annette Bernhardt; Michael Spiller; Nik Theodore
Working Paper; 2012

Drawing on an innovative, representative survey of workers in Chicago, Los Angeles and New York City, the authors analyze minimum wage, overtime, and other workplace violations in the low-wage labor market. They document significant inter-industry variation in both the mix and prevalence of violations, and show that while differences in workforce composition are important in explaining that variation, it is differences in job and employer characteristics that play the stronger role.

Examining the Underpinnings of Labor Standards Compliance in Low Wage Industries

David Weil
Russell Sage Foundation Working Paper; 2012

This study examines the relationship between compliance with the Fair Labor Standards Act, the federal law regulating basic labor standards including the minimum wage, overtime, and child labor for the workforce and a set of business practices found in low wage industries: branding, franchising, and third-party management contracting.