Annual Wage Research Articles

Wage-differentials and Their Determinants Across Industries in the Organized Manufacturing Sector of India

This article calculates the magnitude of wage differentials across industries in the organized manufacturing sector of India and identifies the major determinants of wage differentiation among the industries. Using data from Annual Survey of Industries in India for the period from 2000–2001 to 2015–2016, this study shows that mean wage is less in labour-intensive industries compared to the capital-intensive industries. The results of panel regression of annual average wage on various industry-specific factors show that productivity of labour is the most important factor in wage determination, and productivity largely depends on capital–labour ratio. The other significant factors in this regard are farm size, amount of profit and proportion of casual and female workers in total employment. Important policy implication of this study is that regulatory wage fixation and wage bargaining outcomes are not as significant as productivity differentials in explaining wage gaps across industries.

Estimating the Economic Burden of Acute Myocardial Infarction in the US: 12 Year National Data

Acute myocardial infarction (AMI) carries a substantial mortality and morbidity burden. The purpose of this study is to provide annual mean cost per patient and national level estimates of direct and indirect costs (lost productivity from morbidity and premature mortality) associated with AMI. Nationally representative data spanning 12 years (2003-2014) with a sample of 324,869 patients with AMI from the Medical Expenditure Panel Survey (MEPS) were analyzed. A novel 2-part model was used to examine the excess direct cost associated with AMI, controlling for covariates. To estimate lost productivity from morbidity, an adjusted Generalized Linear Model was used for the differential in wage earnings between participants with and without AMI. Lost productivity from premature mortality was estimated based on published data. The total annual cost of AMI in 2016 dollars was estimated to be $84.9 billion, including $29.8 billion in excess direct medical expenditures, $14.6 billion in lost productivity from morbidity and $40.5 billion in lost productivity from premature mortality between 2003 and 2014. In the adjusted regression, the overall excess direct medical expenditure of AMI was $7,076 (95% confidence interval [CI] $6,028-$8,125) higher than those without AMI. After adjustment, annual wages for patients with AMI were $10,166 (95% CI -$12,985 to -$7,347) lower and annual missed work days were 5.9 days (95% CI 3.57-8.27) higher than those without AMI. The study finds that the economic burden of AMI is substantial, for which effective prevention could result in significant health and productivity cost savings.

Professional entry into equine medicine

In the present study phone interviews on working hours, salary, professional satisfaction and other topics were carried out with 30 equine veterinarians. None of the participants had more than five years of work experience. The gross annual wages ranged from CHF 36'400 to CHF 91'500. The study participants worked 42 to 93hours per week. Only 13% were moderately satisfied with the job, the remaining participants were satisfied to highly satisfied. Sixty percent of the study participants were dissatisfied with their wages and wished to be paid according to the Swiss Veterinary Association (GST) salary recommendations. Five out of 27 wages were within the recommended ranges. The lowest wages were paid at the universities. Sixteen people worked more than the legal maximum of 50 hours a week. A big difference in total working hours per week existed. Especially since part-time workers had more working hours than participants in a full-time job. The study reflects the situation before 2018 and especially at the universities, before the introduction of a new employment contracts with a 50h week, wage adjustments and defined times for further training.

Economic and Health Costs of Child Marriages in India

Although, child marriages, marrying girls and boys before completion of their 18 years of age, has been recognized as a human right violation, they are still practiced widely affecting 15 million girls per year globally. Economic considerations are fundamental to the prevalence of child marriages as poverty is both a cause and consequence of child marriages. Child marriages can hamper girls’ educational attainment and her chances to participate in labor force. Child brides can have negative general and pregnancy-related health outcomes because of early marriage and early childbearing. The isolation and violence inflicted upon the girls can further have physical and psychological health impacts. Apart, from the individual level outcomes child marriages can have household level and in turn national level impacts too. So, our study has following objectives: (i) To examine the levels and trends of child marriages in India and its states. (ii) To assess the demographic and health costs of child marriages in India. (iii) To study the effects of child marriages on women wages and household economic status. (iv) To measure the impact of child marriages on the economic status of the State. The main data source of the study is IHDS 2 (2011-12). The study used univariate, bivariate and multivariate analysis. Our findings show that current levels of child marriages are significantly high in India with variations across different regions of the country. Our cost estimations revealed that nearly 100 million additional pregnancies occurred for the total ever-married women as on 1st March, 2011, because of child marriages. Also, there were 27 thousand additional neonatal deaths, 55 thousand additional infant deaths and 1.6 lakh child deaths in 2011, due to child marriages. Further, it was found that there are 6.3 million additional underweight women alive as on 1st March, 2011 because of child marriages. Women married below the age of 18 years have less likelihood of completing secondary and higher secondary schooling. Also, the annual wage rates of the child brides were found to be almost half than the women married at 18 years and above and the household economic status of child brides was poorer. child marriages have negative consequences on the macro-level economic status of the country. According to our cost estimates, India incurred loss of nearly 1899 billion INR, which is almost 1.68 percent of total GDP of India.

Discrimination, Migration, and Economic Outcomes: Evidence from World War I

Are the costs of discrimination mainly borne by the targeted group or by society? This paper examines both individual and aggregate costs of ethnic discrimination. Studying Germans living in the U.S. during World War I, an event that abruptly downgraded their previously high social standing, we propose a novel measure of local anti-German sentiment based on war casualties. We show that Germans disproportionally fled counties with high casualty rates and that those counties saw more anti-German slurs reported in newspapers. German movers had worse occupational outcomes after the war but also the discriminating communities paid a substantial cost. Counties with larger outflows of Germans, who pre-war tended to be well-trained manufacturing workers, saw a drop in average annual manufacturing wages of 1-7% which persisted until 1940. Thus, for discriminating communities, a few years of intense anti-German sentiment were reflected in worse economic outcomes that lasted for more than a decade. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Will Studying Economics Make You Rich? A Regression Discontinuity Analysis of the Returns to College Major

We investigate the wage return to studying economics by leveraging a policy that prevented students with low introductory grades from declaring the major. Students who barely met the GPA threshold to major in economics earned \$22,000 (46\%) higher annual early-career wages than they would have with their second-choice majors. Access to the economics major shifts students' preferences toward business/finance careers, and about half of the wage return is explained by economics majors working in higher-paying industries. The causal return to majoring in economics is very similar to observational earnings differences in nationally representative data.

Heterogeneous Passthrough from TFP to Wages

What is the impact of firms' productivity shocks on workers' labor earnings? To answer this question, we propose a novel approach to identify firms' productivity shocks that combines a nonparametric production function estimation method with a set of two-way fixed effect regressions to control for differences in labor quality across firms. We apply this method on matched employer-employee data that encompasses the entire population of workers and firms in Denmark between 1995 and 2010. Our dataset allows us to separately study workers that stay in the firm across consecutive periods from those that transition between firms, to control for workers' endogenous job mobility decisions, and to investigate how the passthrough from firms' shocks to wages varies across narrow population groups. We find an elasticity of workers' hourly wages to firms' productivity of 0.08. This implies that a positive shock to firms' productivity of one standard deviation generates an increase of $1,100 US dollars in annual wages for the average worker in Denmark. This result also implies labor supply elasticities of around 5.6. We also find that both persistent and transitory shocks to firms are passed on to wages and that there is marked asymmetry in passthrough between positive and negative productivity shocks. In fact, after controlling for workers' endogenous mobility decisions, the elasticity of hourly wages to a negative productivity shock is twice that of a positive productivity shock of the same magnitude. This suggests that workers are more exposed to negative than to positive shocks to firms' productivity. Furthermore, we find that the changes in wages due to variation in firm productivity are quite persistent and do not dissipate even five years after the shock. By looking at the heterogeneity of passthrough across firm and worker groups, we provide insights about the theoretical mechanisms that could explain the patterns of passthrough we observe in the data.

Disappearing Economic Mobility in U.S. Micropolitan Areas

A key driver of urbanization is the pursuit of economic opportunities in cities. One such opportunity is the promise of higher wages in larger cities, a phenomenon known as the urban wage premium. While an urban wage premium has been well-documented among U.S. metropolitan areas, little is known about its existence among micropolitan areas, which represent an important link between rural and dense urban areas. Here we measure the power law scaling coefficient of aggregate annual wages versus workforce for both U.S. metropolitan and micropolitan areas over a 35-year period. We take this coefficient to be the magnitude of the urban wage premium within a type of urban area and find the relationship is superlinear in all years for both area types. While both areas once had similar wage premiums, the premium in micropolitan areas has declined in the era of globalization while the premium across metropolitan areas has generally increased. This growing gap between micropolitan and metropolitan wage premiums is highly correlated with a divergence in voting behavior, with micropolitan voters having become increasingly conservative. Finally, we speculate that if urban dwellers respond to the COVID-19 crisis by migrating, the trends we describe may possibly change significantly.

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Research on Extended Carbon Emissions Accounting Method and Its Application in Sustainable Manufacturing

Carbon-Emission Accounting (CEA) is an important assessment method for sustainable manufacturing, which mainly focuses on raw materials, energy and waste disposal factors but ignores labor and capital factors. However, the generation process of labor and capital inevitably produce Carbon Dioxide Emissions (CDE). Referring the Extended Exergy Accounting method, the calculation model of extended carbon dioxide emissions factors of capital and labor is established based on the standard CDE per capita, total population, annual working hours, intermediate money M2 and total annual wage S, etc. Then the Extended Carbon-Emission Accounting (ECEA) method is proposed based on the current CEA method, accounting labor, capital, raw materials, energy and all other environmental related factors. Comparatively analyzing on grinding and hard-turning process of a lathe spindle part is studied, the result shows ECEA method is more reasonable and suitable for sustainable manufacturing than CEA method.

A contemporary and comprehensive analysis of the costs of stroke in the United States

BackgroundWhile several studies have determined direct costs associated with stroke there is a paucity of research involving indirect costs, especially in younger patients. AimPerform a cost of illness analysis for ischemic and non-traumatic hemorrhagic stroke in the US involving both direct and indirect costs in all age groups. MethodsNationally representative data was obtained from the Medical Expenditure Panel Survey (2003–2014). Subjects were dichotomized based on reported history of stroke. Two-part econometric models were used to estimate the adjusted incremental direct expenditure for patients with stroke. We used generalized linear model with family gamma, log link for the adjusted analysis of annual wage, a negative binomial regression model for the adjusted analysis of missed-work day, and a logistic regression model to estimate the probability of full-year employment. Loss of productivity due to premature death was computed using Present-Value of one life and annual number of deaths from 2014 National Vital Statistics. All costs are represented in 2016 US-dollar values. ResultsOut of 253,235,052 participants, 8,101,159 (3.2%) reported history of stroke. Weighted samples of 10,155 stroke participants and 314,694 control group were compared. Adjusted annual direct costs for each stroke participant was $4317 (95% CI: $3828–$4807) greater than control resulting in a net $38 billion incremental expenditure. Based on salary difference, missed workdays, and mortality, indirect cost from under-employment was $38.1 billion and from premature mortality was $30.4 billion. ConclusionTotal aggregate of $103.5 billion expenditure was incurred with 66% being from indirect costs based on 2016 US-dollar values.

Financial Reporting Quality, Turnover Risk, and Wage Differentials: Evidence from Worker-level Data

We examine whether financial reporting quality affects worker wages using employer-employee matched data in the U.S. We find that low financial reporting quality is associated with a compensating wage differential—i.e., a risk premium—even after controlling for worker characteristics. The data show a sizable wage differential using both firm-level reporting quality and workers switching to low financial reporting quality firms. We explore two potential channels of this association: the performance pay and turnover risk channels, where workers bear risks from noise in performance measurement and unemployment, respectively. We find that the association is stronger when industries use more performance pay for rank-and-file employees and that firms with low reporting quality exhibit high employee turnover. To mitigate endogeneity concerns over omitted firm characteristics, we show that—after the accounting scandals in 2002 and after the announcements of an internal control weakness (ICW)—former Andersen clients and ICW firms pay wage premiums to employees, with magnitudes between 0.9% to 2.8% of annual wages. Overall, we demonstrate economically significant compensating wage differentials for low financial reporting quality firms.

An analysis of foreign students’ expenses while studying at universities: Interstate comparison

<p><strong>Theoretical background</strong>: The focus of this article is to study and compare the indicators that are implemented to evaluate the quality of the educational activities of universities in Poland, Germany and Ukraine. The investigation is exercised, in particular, by the proposed indicator of comparing the annual students’ costs during their studies for a bachelor’s degree with the average annual incomes of these services for consumers in related countries. Because of the differences in remuneration across the regions of each country, the authors used statistical data from these regions. Regarding average annual incomes, the authors used the average wage level in the provinces of Poland, the federal lands of Germany, and the regions of Ukraine.</p><p><strong>Purpose of the article</strong>: The research objective of the article is a substantiation of methodological and applied recommendations for interstate comparisons of foreign students’ expenses while studying at universities based on the experience of Poland, Germany and Ukraine. The object of this paper is the analysis of annual costs of a foreign student while studying at domestic and foreign universities.</p><p><strong>Research methods</strong>: During the research, the following methods were used: the dialectical method and methods of analysis and synthesis – to study the features of the comparison of educational activities of domestic and foreign universities, the characteristics to compare the costs of the training period within universities of different countries; statistical method – to analyse the average annual wage and the costs of international students during the training period at universities in Poland, Germany and Ukraine; structural and logical analysis – to develop theoretical and methodological principles to determine the indicator for "the ratio of the student’s annual expenses while studying at the university to the average wage in the region".</p><p><strong>Main findings</strong>: The ratio of the annual costs of students during the studying period and average annual wages allows different categories of stakeholders to determine the real level of expenses. For applicants, primarily Ukrainians, such an indicator will allow them to navigate, not only the absolute amount of annual expenses, but also the comparison of costs with the remuneration for possible part-time work that is allowed to students in Germany and Poland. Moreover, the part-time work allowed for students correlates to a certain extent with the level of average wages. For university authorities, the proposed indicator may allow a comparison of the competitiveness of their higher education institutions, taking into account the solvency of educational services users. For business circles and local governments (in the provinces of Poland, the federal lands of Germany and regions of Ukraine), this indicator can be useful in assessing the competitiveness of their territories to attract students. Student youth and local residents act as consumers of goods and services, contribute to the development of local business and, thus, can be a source of filling local budgets.</p>

Differences in wage earnings between psoriasis patients on biologics versus those on oral therapies: a population-based study in the United States

Introduction A critical gap exists in determining how various systemic treatments may differentially impact patients’ wage earnings. Methods We compared personal economic indicators (annual and hourly wages, weekly hours worked, and disability days) between psoriasis patients on biologic therapies versus those on oral medications. Using the 2003–2015 Medical Expenditure Panel Survey, we performed multivariate linear regression analyses to investigate the relationship between personal economic indicators and psoriasis treatment. Results The number of U.S. respondents with psoriasis who reported using biologic or oral therapies between 2003 and 2015 was 2,638,681 (weighted). The mean annual wage among patients on biologics ($52,141.34 [95% CI 40,976–63,306]) was significantly higher than that of patients on oral therapies ($33,584.87 [95% CI 27,687–39,483]) (p=.019). The mean weekly hours worked among patients on biologics (43.7 h [95% CI 40.01–47.47]) was significantly higher than that of patients on oral therapies (40.6 h [95% CI 39.66–41.59]) (p = .003). Hourly wage and disability days were not significantly different between the two groups. Conclusions Psoriasis patients on biologics earned higher annual wages compared to those on oral therapies, and this is primarily due to the increased number of work hours by those on biologic therapies.

States with higher minimum wages have lower STI rates among women: Results of an ecological study of 66 US metropolitan areas, 2003-2015.

Prior research has found that places and people that are more economically disadvantaged have higher rates and risks, respectively, of sexually transmitted infections (STIs). Economic disadvantages at the level of places and people, however, are themselves influenced by economic policies. To enhance the policy relevance of STI research, we explore, for the first time, the relationship between state-level minimum wage policies and STI rates among women in a cohort of 66 large metropolitan statistical areas (MSAs) in the US spanning 2003–2015. Our annual state-level minimum wage measure was adjusted for inflation and cost of living. STI outcomes (rates of primary and secondary syphilis, gonorrhea and chlamydia per 100,000 women) were obtained from the CDC. We used multivariable hierarchical linear models to test the hypothesis that higher minimum wages would be associated with lower STI rates. We preliminarily explored possible socioeconomic mediators of the minimum wage/STI relationship (e.g., MSA-level rates of poverty, employment, and incarceration). We found that a $1 increase in the price-adjusted minimum wage over time was associated with a 19.7% decrease in syphilis rates among women and with an 8.5% drop in gonorrhea rates among women. The association between minimum wage and chlamydia rates did not meet our cutpoint for substantive significance. Preliminary mediation analyses suggest that MSA-level employment among women may mediate the relationship between minimum wage and gonorrhea. Consistent with an emerging body of research on minimum wage and health, our findings suggest that increasing the minimum wage may have a protective effect on STI rates among women. If other studies support this finding, public health strategies to reduce STIs among women should include advocating for a higher minimum wage.

The association of pain interference and opioid use with healthcare utilization and costs, and wage loss among adults with osteoarthritis in the United States

Aim: To examine associations of opioid use and pain interference with activities (PIA), healthcare resource utilization (HRU) and costs, and wage loss in noninstitutionalized adults with osteoarthritis in the United States (US).Methods: Adults with osteoarthritis identified from the Medical Expenditure Panel Survey for 2011/2013/2015 were stratified by no-opioid use with no/mild PIA, no-opioid use with moderate/severe PIA, opioid use with no/mild PIA, and opioid use with moderate/severe PIA. Outcomes included annualized total HRU, direct healthcare costs, and wage loss. Multivariable regression analyses were used for comparisons versus no-opioid use with no/mild PIA (referent). The counterfactual recycled prediction method estimated incremental costs. Results reflect weighted nationally representative data.Results: Of 4,921 participants (weighted n = 20,785,007), 46.5% had no-opioid use with no/mild PIA; 23.2% had no-opioid use with moderate/severe PIA; 9.6% had opioid use with no/mild PIA; and 20.7% had opioid use with moderate/severe PIA. Moderate/severe PIA and/or opioid use were associated with significantly higher HRU and associated costs, and wage loss. Relative to adults with no/mild PIA, opioid users with moderate/severe PIA were more likely to have hospitalizations, specialist visits, and emergency room visits (all p < .001). Relative to the referent, opioid use with no/mild PIA had higher per-patient incremental annual total healthcare costs ($11,672, 95% confidence interval [CI] = $11,435–$11,909) and wage loss ($1,395, 95% CI = $1,376–$1,414) as did opioid use with moderate/severe PIA ($13,595, 95% CI = $13,319–$13,871; and $2,331, 95% CI = $2,298–$2,363) (all p < .001). Compared with the referent, estimated excess national total healthcare costs/lost wages were $23.3 billion/$1.3 billion for opioid use with no/mild PIA, and $58.5 billion/$2.2 billion for opioid use with moderate/severe PIA.Limitations: Unobservable/unmeasured factors that could not be accounted for.Conclusions: Opioid use with moderate/severe PIA had significantly higher HRU, costs, and wage loss; opioid use was more relevant than PIA to the economic burden. These results suggest unmet needs for alternative pain management strategies.

The association between early-onset schizophrenia with employment, income, education, and cohabitation status: nationwide study with 35\xa0years of follow-up

PurposeIndividuals with schizophrenia have been reported to have low employment rates. We examined the associations of schizophrenia with employment, income, and status of cohabitation from a work life course perspective.MethodsNationwide cohort study including all individuals (n = 2,390,127) born in Denmark between 1955 and 1991, who were alive at their 25th birthday. Diagnosis of schizophrenia (yes/no) between ages 15 and 25 was used as an exposure. Employment status, annual wage or self-employment earnings, level of education, and cohabitant status from the age of 25–61 (years 1980–2016) were used as outcomes.ResultsSchizophrenia diagnosis between ages 15 and 25 (n = 9448) was associated with higher odds of not being employed (at the age of 30: OR 39.4, 95% CI 36.5–42.6), having no secondary or higher education (7.4, 7.0–7.8), and living alone (7.6, 7.2–8.1). These odds ratios were two-to-three times lower and decreasing over time for those individuals who did not receive treatment in a psychiatric inpatient or outpatient clinic for schizophrenia after the age of 25. Between ages 25–61, individuals with schizophrenia have cumulative earning of $224,000, which is 14% of the amount that the individuals who have not been diagnosed with schizophrenia earn.ConclusionsIndividuals with schizophrenia are at high risk of being outside the labour market and living alone throughout their entire life, resulting in an enormous societal loss in earnings. Individuals with less chronic course of schizophrenia had a gradual but substantial improvement throughout their work life.

Mental disorders and long-term labour market outcomes: nationwide cohort study of 2055720 individuals.

To examine the associations between an onset of serious mental disorders before the age of 25 with subsequent employment, income and education outcomes. Nationwide cohort study including individuals (n=2055720) living in Finland between 1988-2015, who were alive at the end of the year they turned 25. Mental disorder diagnosis between ages 15 and 25 was used as the exposure. The level of education, employment status, annual wage or self-employment earnings, and annual total income between ages 25 and 52 (measurement years 1988-2015) were used as the outcomes. All serious mental disorders were associated with increased risk of not being employed and not having any secondary or higher education between ages 25 and 52. The earnings for individuals with serious mental disorders were considerably low, and the annual median total income remained rather stable between ages 25 and 52 for most of the mental disorder groups. Serious mental disorders are associated with low employment rates and poor educational outcomes, leading to a substantial loss of total earnings over the life course.

Indirect Cost of Traumatic Brachial Plexus Injuries in the United States.

Traumatic brachial plexus injuries (BPIs) disproportionately affect young, able-bodied individuals. Beyond direct costs associated with medical treatment, there are far-reaching indirect costs related to disability and lost productivity. Our objective was to estimate per-patient indirect cost associated with BPI. We estimated indirect costs as the sum of (1) short-term wage loss, (2) long-term wage loss, and (3) disability payments. Short-term (6-month) wage loss was the product of missed work days and the average earnings per day. The probability of return to work was derived from a systematic review of the literature, and long-term wage loss and disability payments were estimated. Monte Carlo simulation was used to perform a sensitivity analysis of long-term wage loss by varying age, sex, and return to work simultaneously. Disability benefits were estimated from U.S. Social Security Administration data. All cost estimates are in 2018 U.S. dollars. A systematic review of the literature demonstrated that the patients with BPI had a mean age of 26.4 years, 90.5% were male, and manual labor was the most represented occupation. On the basis on these demographics, our base case was a 26-year-old American man working as a manual laborer prior to BPI, with an annual wage of $36,590. Monte Carlo simulation estimated a short-term wage loss of $22,740, a long-term wage loss of $737,551, and disability benefits of $353,671. The mean total indirect cost of traumatic BPI in the Monte Carlo simulations was $1,113,962 per patient over the post-injury lifetime (median: $801,723, interquartile range: $22,740 to $2,350,979). If the probability of the patient returning to work at a different, lower-paying job was doubled, the per-patient total indirect cost was $867,987. BPI can have a far-reaching economic impact on both individuals and society. If surgical reconstruction enables patients with a BPI to return to work, the indirect cost of this injury decreases. Economic Level IV. See Instructions for Authors for a complete description of levels of evidence.

Wages in the U.S. Manufacturing industry

Based on data from official American statistics, the issue of wages in the United States of America manufacturing industry has been considered. This study is an important area of study of modern social and economic problems of the United States. Manufacturing plays an important role in the economy of the US, because it creates a material basis for all other industries. The trends and problems in this area have been revealed in the article. For a comprehensive analysis a systematic approach, economic-statistical and logical research methods have been used in the paper. A comprehensive study of wages in the most important sectors of the national economy has been carried out, based on data from the Bureau of Labor Statistics of the US Department of Labor. Separate attention has been paid to the category of “production workers”, whose share is about 70%. The statistical data on the average annual wage of production workers by industry according to the NAICS have been adduced. The significance of the manufacturing industry in creating, maintaining and returning jobs for the US economy has been shown.The difference in wages depending on the level of education, work experience and profession has been analyzed. The data on the highest paid industrial professions have been adduced. The uneven distribution of the manufacturing industry by states has been shown. It has been noted, that the reduction in the coverage of the trade union movement of American workers is another factor, affecting the level of wages. The correlation between production volume and Gini Coefficient in the USA in the period from 1947 to 2014 has been presented in the article. It has been noticed, that the growth of inequality in the US income and the decline of the manufacturing industry are interrelated.