Author Archives: afscme

The Relationship between Union Membership and Net Fiscal Impact

Source: Aaron Sojourner, José Pacas, IZA – Institute of Labor Economics, IZA DP No. 11310, January 2018

This paper develops the first evidence on how individuals’ union membership status affects their net fiscal impact, the difference between taxes they pay and cost of public benefits they receive, enriching our understanding of how labor relations interacts with public economics. Current Population Survey data between 1994 and 2015 in pooled crosssections and individual first-difference models yield evidence that union membership has a positive net fiscal impact through the worker-level channels studied.

Workers’ compensation and the working poor: Occupational health experience among low wage workers in federally qualified health centers

Source: Liza Topete, Linda Forst, Joseph Zanoni and Lee Friedman, American Journal of Industrial Medicine, Early View, January 31, 2018
(subscription required)

From the abstract:
Background:
The working poor are at highest risk of work-related injuries and have limited access to occupational health care.

Objectives:
To explore community health centers (CHCs) as a venue for accessing at risk workers; and to examine the experience, knowledge, and perceptions of workers’ compensation (WC) among the working poor.

Methods:
Key informant interviews were conducted among patients in waiting rooms of rural and urban CHCs.

Result:
Fifty-one interviews of minority workers across sectors identified 23 prior work-related injuries and mixed experiences with the WC system. Barriers to reporting and ways to overcome these barriers were elucidated.

Conclusions:
Patients in CHCs work in jobs that put them at risk for work-related injuries. CHCs are a good site for accessing at-risk workers. Improving occupational healthcare and appropriate billing of WC insurance should be explored, as should best practices for employers to communicate WC laws to low wage workers.

Unreported Sexual Harassment: Should You Have A Crystal Ball?

Source: Maureen Minehan, Employment Alert, Volume 35, Issue 3, February 8, 2018
(subscription required)

As stories of previously unreported behavior ranging from boorish to egregious emerge, individuals across the country are wondering whether the employers involved were turning a blind eye to sexual harassment in their workplaces or if they were truly unaware.

The effects of 137 minimum wage hikes, in one chart

Source: Christopher Ingraham, Washington Post, Wonkblog, February 5, 2018

Last summer, a paper on the effects of Seattle’s minimum-wage increase made national headlines with its conclusion: The change made low-income workers worse off, not better, because it forced employers to cut back on hiring and hours to afford paying higher wages. …..

…. A little more than six months later, and minds have indeed been changed — among them Autor’s. He now says that other recent minimum-wage papers have underscored the limitations of the Seattle study.

Chief among those newer papers is a large analysis of the effects of minimum-wage increases that have occurred since 1979. That paper, co-written by Arindrajit Dube of the University of Massachusetts, was recently presented at the American Economic Association’s annual conference….

Related:
The effect of minimum wages on the total number of jobs: Evidence from the United States using a bunching estimator
Source: Doruk Cengiz, Arindrajit Dube, Attila Lindner, Ben Zipperer, April 30, 2017, Presented at the American Economic Association 2018 meeting

What’s the matter with Oklahoma?

Source: The Economist, January 30, 2018

Low teacher pay and severe budget cuts are driving schools to the brink. ….

Forty miles from Tulsa, sometimes along unpaved roads, sits Wagoner High School, with its 650 pupils, championship-calibre football team and show barn—a seemingly ordinary small-town school. But unlike most high schools, Wagoner is closed on Mondays. The reason, a severe reduction in state funds, has pushed 90 other school districts in Oklahoma to do the same. Teacher pay is the third-lowest in the country and has triggered a statewide shortage, as teachers flee to neighbouring states like Arkansas and Texas or to private schools. “Most of our teachers work second jobs,” says Darlene Adair, Wagoner’s principal. “A lot of them work at Walmart on nights and weekends, or in local restaurants.” Ms Adair hopes that Walmart does not offer her teachers a full-time job, which would be a pay rise for many.

The roots of the fiasco are not hard to determine. As in Oklahoma’s northern neighbour, Kansas, deep tax cuts have wrecked the state’s finances. During the shale boom, lawmakers gave a sweetheart deal to its oilmen, costing $470m in a single year, by slashing the gross production tax on horizontal drilling from 7% to 1%. North Dakota, by contrast, taxes production at 11.5%. The crash in global oil prices in 2014 did not help state coffers either. Oklahoma has also cut income taxes, first under Democrats desperate to maintain control over a state that was trending Republican, and then under Republicans, who swept to power anyway. Mary Fallin, the Republican governor, came to office pledging to eliminate the income tax altogether. Since 2008 general state funds for K-12 education in Oklahoma have been slashed by 28.2%—the biggest cut in the country. Property taxes, which might have made up the difference, are constitutionally limited….

….No fact embarrasses Oklahomans more, or repels prospective businesses more, than the number of cash-strapped districts that have gone to four-day weeks……

How to Hire

Source: Patty McCord, Harvard Business Review, January-February 2018

…. Making great hires is about recognizing great matches—and often they’re not what you’d expect. ….

…. In this article I’ll describe what I’ve learned about making great hires during my 14 years at Netflix and in subsequent consulting on culture and leadership. The process requires probing beneath the surface of people and their résumés; engaging managers in every aspect of hiring; treating your in-house recruiters as true business partners; adopting a mindset in which you’re always recruiting; and coming up with compensation that suits the performance you need and the future you aspire to. My observations may be especially relevant to fast-growing tech-based firms, whose rapid innovation means a continual need for new talent. But organizations of all types can benefit from taking a fresh look at their hiring and compensation practices. ….

More Than a Paycheck

Source: Dennis Campbell, John Case, Bill Fotsch, Harvard Business Review, January-February 2018

….Tomorrow’s blue-collar jobs will be largely in services.

That means the good jobs of the future are going to look rather different from those of the past. What we mean by “good” is well understood: The jobs provide a decent living. But we’ve come to realize that a decent living in the new economy entails more than a generous wage; it involves sharing the company’s success with employees. It’s also about more than money: People want to learn new skills and to understand how their work contributes to that success. Those insights have generally taken hold in high-end, knowledge-work settings. But a healthy free-enterprise society must offer promising employment opportunities for all its citizens, not just the well educated and highly skilled—and that means figuring out how to make blue-collar jobs more engaging as well as better paid. Otherwise the toxic combination of anger, demoralization, and cynicism that we already see among many Americans will spread.

So what should blue-collar jobs in the 21st century look like? Let’s begin by considering compensation. Arguably, we’ve already figured out that we ought to change the way we pay—even if relatively few companies are doing so yet. But as we’ll see, no benefits of progress on compensation will be fully realized or sustained unless we also make blue-collar jobs more engaging. In this respect, much remains to be done…..

The False Choice Between Automation and Jobs

Source: James Manyika, Michael Spence, Harvard Business Review, February 5, 2018

….The catch is that adopting these technologies will disrupt the world of work. No less significant than the jobs that will be displaced are the jobs that will change—and those that will be created. New research by the McKinsey Global institute suggests that roughly 15% of the global workforce could be displaced by 2030 in a midpoint scenario, but that the jobs likely created will make up for those lost. There is an important proviso: that economies sustain high economic growth and dynamism, coupled with strong trends that will drive demand for work. Even so, between 75 million to 375 million people globally may need to switch occupational categories by 2030, depending on how quickly automation is adopted.

It is no small challenge. The jobs gained will require higher educational attainment and more advanced levels of communication and cognitive ability, as work requiring rote skills such as data processing or collection increasingly are taken over by machines. People will be augmented by increasingly capable machines acting as digital working partners and assistants, further requiring ongoing skills development and evolution. In advanced economies, which the research shows will be the most affected, downward pressure on middle-wage jobs will likely grow, exacerbating the already vexed issue of job and income polarization, although in emerging economies the balance between jobs lost and jobs gained looks to be more favorable in the short- to medium-run., and the net effect is likely to be an acceleration of growth in the middle class…..

Related:
What the future of work will mean for jobs, skills, and wages
Source: James Manyika, Susan Lund, Michael Chui, Jacques Bughin, Jonathan Woetzel, Parul Batra, Ryan Ko, and Saurabh Sanghvi, McKinsey Global Institute, Report, November 2017