Employee Earnings Research Articles

The effect of education on household incomes using the Mincerian approach: a comparison between MENA and the rest of the world

ABSTRACT This paper uses the Mincerian approach in an experimental way to examine the impact of education on household incomes (not labor earnings) of all workers (not just employees) across 162 countries. Our results are broadly similar to the conventionally estimated rates of return to education after allowing for the fact that earnings are only a part of total household incomes. We then apply the results to the case of Arab countries and find that our experimental approach can promisingly be used for the study of the impact of education not just on individual earnings of employees but also on total household incomes of all workers and more broadly on the economy and the labor market.

Minimizing falsified financial reports

The study criticizes the way South Africa collects taxes from different segments of the population, primarily pensioners and workers with two sources of income. It also condemns the ineffective manner in which it administers some tax payouts, especially in the unfairness that has shown bias to some groups. Primarily, taxing of the pensioners is condemned, as well as the taxing of second earnings of employees, mainly where there were victims of the apartheid policies. The paper recommends taxing people with caution, in order not to perpetuate apartheid-initiated poverty of the South African masses of people, and in cases where earners who are being taxed could be having extra financial responsibilities. In order to resolve these problems, taxpayers and tax preparers should make sure that tax laws are applied correctly, that they are aware of the consequences of breaking the Generally Accepted Accounting Principles (GAAP), and that they routinely review and update their tax return positions in response to modifications to accounting standards and tax legislation.

Manufacturing Investment and Employee Earnings: Evidence from Accelerated Depreciation

Manufacturing Investment and Employee Earnings: Evidence from Accelerated Depreciation

It’s not me, it’s you: internal migration and local wages in Great Britain

ABSTRACT Differences in regional incomes are large and persistent in many countries. On the one hand, internal migration from low- to high-income regions might eradicate these differences over time. On the other hand, internal migration might exacerbate disparities, as receiving regions benefit from incoming skills and agglomeration economies. This paper estimates the effect of internal in- and out-migration on the earnings of employees who do not move, using a panel of employee records from Great Britain between 2004 and 2018. Employees are tracked and identified as internal migrants if they start working in a new travel-to-work area (TTWA), representing functional labour market areas. The share of in- and out-migrants is significantly correlated with earnings and earnings growth of non-migrants in a TTWA. The results show that in-migrants have an immediate negative effect on local earnings of non-migrants. After three years, in-migration is positively correlated with earnings growth. These effects are exclusively driven by urban areas. Out-migrants have no significant effects. The results provide some evidence that labour mobility can be used as a tool to encourage local growth, albeit with significant adjustment costs.

The Future of Work and U.S. Public Opinion on Noncompete Law: Evidence from a Conjoint Experiment

Although policymakers have recently shown a keen interest in noncompete reform, a gap exists in the literature concerning what the U.S. public's preferences are regarding noncompetes. Therefore, this article presents the empirical findings of a nationally‐representative survey of the American public on the noncompete law governing employees. Based on the results of a conjoint experiment within the survey, this article finds that the U.S public prefers that noncompetes be used to protect any types of confidential information, rather than simply customer lists or employee training investments. Additionally, the findings do not show clear support either for or against noncompete exemptions based on an employee's earnings level. However, this article finds that the U.S. public prefers a noncompete exemption for physicians, a shorter maximum duration for the noncompete period, and a legal mandate that departing employees subject to noncompetes receive some compensation from the employer during the noncompete period. Consequently, this article argues that employers should engage in greater self‐regulation if they would like to mitigate the risk not only that legislators will respond to public sentiment favoring more employee‐friendly policies by enacting a total or near‐total ban on noncompetes, but also that judges will find the noncompetes to be unreasonable.

Does Taxing Business Owners Affect Employees? Evidence From A Change in the Top Marginal Tax Rate

Abstract Debates about the taxation of business owners often center on the distributional effects of these taxes, particularly the degree to which they affect workers. Drawing on a new linked owner-firm-worker data set created from U.S. administrative tax records, I analyze how an increase in the top marginal tax rate faced by business owners affected the earnings of their employees. I use panel difference-in-differences methods to compare the earnings of workers in similar firms but whose owners were differentially exposed to the tax increase. I estimate that 11–18 cents per dollar of new business income tax liability was passed through to employee earnings. I find no change in employment in response to the tax increase. The responses were generally associated with lower earnings growth, not changes in workforce composition. The burden was not borne equally by all workers. Essentially all of the workers’ share of the burden was borne by those in the top 30% of the earnings distribution, highlighting that the ultimate distributional effects of the policy depend not only on the share of the burden borne by workers but on the shares borne by different types of workers. Furthermore, since the owners bore the majority of the burden, the policy resulted in a decrease in after-tax earnings inequality between top-bracket owners and lower-bracket workers. I discuss the implications of the findings for the mediating labor market mechanisms and for welfare analyses of income taxation using a marginal value of public funds framework.

Job Transitions and Employee Earnings after Acquisitions: Linking Corporate and Worker Outcomes

Job Transitions and Employee Earnings after Acquisitions: Linking Corporate and Worker Outcomes

Save more with less: The impact of employer defaults and match rates on retirement saving

AbstractEmployers control two primary levers that can motivate retirement savings among defined contribution plan participants—default savings rates and match rates. Setting a higher default savings rate can increase plan contributions among passive savers who accept the default. A higher match rate incentivizes active savers to increase contributions. This study uses a large sample of defined contribution participants to estimate the interaction between employer match and default rates on savings outcomes among new participants. Selecting a higher default rate has the largest impact on employee savings rates. Plans with low default savings rates that match a high percentage of employee earnings induce higher‐income participants to actively move away from the low default savings rate, resulting in a wider savings gap between higher‐ and lower‐income employees. When employees are defaulted in at a higher rate, fewer move away from the default savings rate and the default investment choice (e.g., a target‐date fund). A higher default savings rate results in higher and more equal savings rates among employees, and higher acceptance of professionally managed defaults investments.

Do Cash Windfalls Affect Wages? Evidence from R&D Grants to Small Firms

Abstract This paper examines how employee earnings respond to a one-time cash flow shock in the form of a government R&D grant. In a regression discontinuity design, we find that the grant immediately increases average annual employee-level earnings by 2.9$\%$. This benefit accrues only to incumbent employees and rises with job tenure. The grant also affects firm growth, but the initial wage patterns do not appear to reflect growth or productivity. Instead, the evidence supports implicit equity financing within the firm, where employees initially accept lower wages from financially constrained firms and earn more when the firm has ability to pay. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Measuring the Quality of Working Conditions and Behavioral Intentions of Seasonal Hospitality Workers in Croatia

The aim of this study is to present an objective picture of the quality of working conditions and predictors of behavioral intentions among the Croatian seasonal workforce in the hotel and food and beverage industry. The 6th edition of the EWCS survey was modified for the purpose of this study. The research was conducted from 18 November 2020 to 30 March 2021, and 196 respondents were surveyed. The authors performed exploratory factor analysis and regression analysis to analyze the collected data. The study found that intention to return and intention to recommend are predicted by different sets of sociodemographic characteristics and that the higher the earnings of seasonal employees, the higher will be their intention to return. Moreover, the results imply that seasonal workers who feel they have more control over their daily tasks are more likely to recommend their seasonal job to others. Although the topic of job satisfaction among seasonal hospitality workers is well covered in the existing literature, there is a lack of research focused on measuring the quality of their working conditions. This study is useful for the academic community as a starting point for further research and for managers in the hospitality industry who can apply the results in their everyday business practices.

Costly information acquisition: The influence of stakeholder earnings

Information is often acquired within organizations that generate earnings for employees and stakeholders. In this paper we analyze the causal effects of inequality on information acquisition performance and vary the pay of agents relative to the earnings of passive stakeholders. Our experimental results reveal that disadvantageous inequality does not have a negative effect on agents’ performance.

ОСОБЛИВОСТІ ГРОШОВОГО ЗАБЕЗПЕЧЕННЯ ЗБРОЙНИХ СИЛ УКРАЇНИ В УМОВАХ ВОЄННОГО СТАНУ

During the period of war and the introduction of the legal regime of martial law, the amount of expenses for the financial support of the functioning of the defense and security sector of Ukraine increased significantly compared to those planned in the State Budget for 2022. The analysis was made on the basis of generalizing the losses of the state budget and the lost financial opportunities of Ukraine in the conditions of Russia's armed aggression. The state budget of Ukraine is the basis for the financial support of the defense capability, maintaining the financial stability and security of the state. During the war, the government took prompt action to transform the financial system of the state. The features of adaptation under martial law of the military state of the system of monetary support for military personnel and employees of the Armed Forces of Ukraine as a component of the financial system of the state are revealed. Analysis of the changes the current regulatory framework, which were implemented by the Government of Ukraine in a state of martial law, made it possible to peculiarities the features that have occurred in the monetary support of military personnel and employees of the Armed Forces of Ukraine. For researching the peculiarites of the legal regulation of the system of monetary support for military personnel and employees of the Armed Forces of Ukraine in the conditions of martial law, a systematic approach was applied. An analysis was made of the legal framework governing the financial and legal aspects of the functioning of the system monetary support for military personnel, on the basis of which the concept of "the system of monetary support" for military personnel was clarified. The structure has been formed and the new values of monetary support for military personnel in war conditions have been specified. It was clarified that the personnel of the Armed Forces of Ukraine consists of military personnel and employees of the Armed Forces of Ukraine who are citizens of Ukraine. Generalize of reguliarities of labor relations and guaranteeing the preservation of the place of work (position) and the average earnings of employees, including employees of the Armed Forces of Ukraine in the context of the introduction of the legal regime of martial law, are summarized.

The practice of motivating employees with wages in the Public sector of the People's Republic of China

The article discusses the practice of motivating employees of the Chinese public sector through wages. The author notes that, in general, the system of "salary" motivation of employees in the public sector is characterized by a rather low role of the basic salary and seniority allowances. The main earnings of employees are provided by the official salary, the coefficients of collective and personal efficiency at work that increase the amount of earnings, allowances and surcharges directly related to the effectiveness of staff work, their professional development and career growth. At the same time, mechanisms are actively used to avoid an excessive gap in the income level of senior employees and the bulk of the staff. The difference in the salary level is strictly limited, the level of remuneration is tied to the formalized requirements imposed on each specific employee. The article notes that the equalizing principles of remuneration accrual are closely and quite harmoniously combined with purely market ones. The latter makes it possible to motivate employees to highly productive work, improve their qualifications, receive education, participate in the rationalization of production, and at the same time makes it possible to minimize conflicts between senior employees and the bulk of the staff, as well as to avoid the occurrence of such a destructive factor as awareness by the bulk of employees of the injustice of the payroll system.

Penerapan Metode Pengembangan Sistem Extreme Programing (XP) Pada Aplikasi Presensi Karyawan dengan QR Code

Attendance is the process of recording and managing attendance data that is carried out daily during working hours at each company. Errors in recording employee attendance greatly affect employee earnings. So, the validity of the recording is needed. The attendance recording system manually is error-prone and its recapitulation takes a long time. To overcome this, it is necessary to develop an attendance system that can be done quickly and produce valid reports regarding the time of entry and exit. In this study, a presence application will be developed using QR Code scanning by applying the Extreme Programming (XP) method. The extreme programming (XP) method offers stages in a relatively short time. Based on black box testing, the generated QR Code presence application is in accordance with user needs with a functionality test value of 100%

Personal Care Aides as Household Employees and Independent Contractors: Estimating the Size and Job Characteristics of the Workforce.

Background and ObjectivesAlthough studies pointed out that the number of personal care aides (PCAs) at risk of being in informal employment arrangements is sizeable, little is known about its size and worker characteristics. This study aimed to estimate the share of PCAs working as household employees or independent contractors. It also aimed to compare their basic job characteristics against the job characteristics of those working as agency and government employees.Research Design and MethodsUsing data from the 2014–2018 American Community Surveys, a sample of 43,287 PCAs working for pay in the home- and community-based service (HCBS) industry was identified, and their job characteristics—full-time weekly work (i.e., working at least 35 hours per week), year-round work (i.e., working at least 50 weeks a year), and annual gross earning—were analyzed by their employment arrangement.ResultsAnalyses found that (a) close to a quarter of aides in the HCBS industry work as household employees or independent contractors while their share in the workforce varies by state and that (b) the work hours and earnings of full-time year-round working household employees or independent contractors are greater than those of their agency counterparts. The results shed light on why some aides may work as household employees or independent contractors.Discussion and ImplicationsThe presence of household employees and independent contractors has important implications for PCAs’ job characteristics and labor shortage in the U.S. home care industry. Considering the potentially negative consequences for both the aides’ economic security and the quality of care that consumers can receive, attention should be paid to ways to bring the aides into a more formal employment arrangement.

Is ethnic representation in an industrial cluster related to earnings of co-ethnic employers and employees?

Our study expands understanding of the ways in which ethnic embeddedness is related to the earnings of co-ethnic members by exploring the relationship between ethnic representation in an industry cluster and the earnings of co-ethnic employers and employees working there. Drawing from the 2011 Canadian Household Survey, our findings confirm the relationship. However, the relationship is different for employers and employees, and sometimes opposite. Specifically, a larger portion of Chinese ethnic economies in an industry cluster is negatively related to the earnings of Chinese employers, but is not related to the earnings of Chinese employees. A larger portion of employment niches in an industry cluster is negatively related to the earnings of Chinese employers, but positively related to the earnings of Chinese employees.

Employee Cash Profit-Sharing and Earnings Management

This paper examines how a firm’s employment policy, particularly employee cash profit-sharing plans, affects its financial reporting. We find that firms with employee cash profit-sharing programs are more likely to engage in downward earnings management to reduce labor costs, especially with decreasing performance. This effect is more evident in firms with higher labor costs and human-capital reliant firms. Our findings are robust to a variety of model specifications and endogeneity problems.

Using Payroll Tax Variation to Unpack the Black Box of Firm-Level Production

This paper uses quasi-experimental variation in payroll taxes to estimate their incidence and investigate how firms use their input factors. We find that higher payroll tax rates lead to large employment responses and have no effects on employee earnings. As payroll taxes increase, firms substitute away from low-skilled, routine and manual workers towards more productive workers and also reduce investments. Our results imply that, contrary to the canonical tax incidence model, firm-level production and input factor choices are affected by payroll taxes. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Total Error and Variability Measures for the Quarterly Workforce Indicators and LEHD Origin-Destination Employment Statistics in Onthemap

Abstract We report results from the first comprehensive total quality evaluation of five major indicators in the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD) Program Quarterly Workforce Indicators (QWI): total flow-employment, beginning-of-quarter employment, full-quarter employment, average monthly earnings of full-quarter employees, and total quarterly payroll. Beginning-of-quarter employment is also the main tabulation variable in the LEHD Origin-Destination Employment Statistics (LODES) workplace reports as displayed in OnTheMap (OTM), including OTM for Emergency Management. We account for errors due to coverage; record-level non-response; edit and imputation of item missing data; and statistical disclosure limitation. The analysis reveals that the five publication variables under study are estimated very accurately for tabulations involving at least 10 jobs. Tabulations involving three to nine jobs are a transition zone, where cells may be fit for use with caution. Tabulations involving one or two jobs, which are generally suppressed on fitness-for-use criteria in the QWI and synthesized in LODES, have substantial total variability but can still be used to estimate statistics for untabulated aggregates as long as the job count in the aggregate is more than 10.

Medically Attended Injuries among Slovak Adolescents: Relationships with Socio-Economic Factors, Physical Fighting, and Physical Activity.

There is a worrisome increase in the reporting of medically attended injuries in Slovak adolescents. The aim of this study is to examine the relationships between socio-economic factors, physical fighting, and physical activity with frequency of medically attended injuries among this population group. Data from 8902 adolescents participating in the Health Behavior in School-Aged Children study were used (mean age 13.37; 50.9% boys). The effects of family affluence, registered unemployment rate, average nominal monthly earnings of employees, physical fighting, and physical activity on frequency of medically attended injury were explored using linear regression analysis. Pearson’s correlation was used to describe the associations between all selected variables. The selected model of linear regression explained 15.8% of the variance in the frequency of medically attended injuries. All variables except the registered unemployment rate showed linear positive relationships with medically attended injuries. The correlation analysis confirmed linear positive associations between medically attended injuries and physical fighting, family affluence, physical activity, and average nominal monthly earnings of employees. Further research on these variables is needed in the Slovak context. This may include analyses of the nature of the relationships between socio-economic factors and medically attended injuries, as well as systematic evaluation of applied physical fighting and physical-activity-related injury interventions to support evidence-based policy making.