Category Archives: Compensation

The Political Theory of Universal Basic Income

Source: Juliana Uhuru Bidadanure, Annual Review of Political Science, Vol. 22, 2019
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From the abstract:
Universal basic income (UBI) is a radical policy proposal of a monthly cash grant given to all members of a community without means test, regardless of personal desert, with no strings attached, and, under most proposals, at a sufficiently high level to enable a life free from economic insecurity. Once a utopian proposal, the policy is now widely discussed and piloted throughout the world. Among the various objections to the proposal, one concerns its moral adequacy: Isn’t it fundamentally unjust to give cash to all indiscriminately rather than to those who need it and deserve it? This article reviews the variety of strategies deployed by political theorists to posit that the proposal is in fact justified, or even required, by social justice. The review focuses mainly on the contemporary normative debate on UBI—roughly dating back to Philippe Van Parijs’s influential work in the 1990s—and is centered on the ideals of freedom and equality.

See Where Teachers Got Pay Raises This Year – Protests across the country swayed governors to push for salary bumps

Source: Daarel Burnette II & Madeline Will, Education Week, Vol. 38 Issue 36, Published in Print: June 19, 2019

More than a year after teachers across the country began walking out of their classrooms en masse to demand higher salaries, at least 15 states have given their teachers a raise.

And lawmakers in several more states are putting the final touches on plans to raise teacher salaries, according to an Education Week analysis…..

….Here’s what you need to know about each state’s plan (as of June 17) to raise teacher pay. (The average teacher salary for each state reflects the National Education Association’s estimate for the 2018-19 school year, which would not include these raises.)

Click a state in the dropdown to jump to that section: ….

Executive Paywatch 2019

Source: AFL-CIO, 2019

In 2018, CEOs of S&P 500 companies received, on average, $14.5 million in total compensation. The average S&P 500 company CEO-to-worker pay ratio was 287 to 1. The imbalance in our economy between the pay of CEOs and working people continues to be a problem.

Highest-Paid CEOs
CEO pay continues to outpace the pay of working people. In the past 10 years, CEO pay at S&P 500 companies increased more than $500,000 a year to an average of $14.5 million in 2018. Meanwhile, the average production and nonsupervisory worker saw a wage increase of $785 a year, earning on average just $39,888 in 2018.

Company Pay Ratios
Publicly traded companies are required to disclose the pay ratio between their chief executive and median employee. Company pay ratio data is important. It shows which companies are investing in their workforce to create high-wage jobs. The table below shows how companies pay their CEOs relative to their workforce.

Related:
CEOs made 287 times more money last year than their workers did
Source: Alexia Fernández Campbell, Vox, June 26, 2019

Companies have finally started reporting CEO-worker pay ratios. Now we know why they fought so hard to avoid it.

Unsurprisingly, the gap is obscene. The average chief executive of an S&P 500 company earned 287 times more than their median employee last year, according to an analysis of the new federal data released Tuesday by the AFL-CIO labor federation. America’s CEOs earned a staggering $14.5 million in 2018, on average, compared to the average $39,888 that rank-and-file workers made. And CEOs got a $500,000 bump compared to the previous year, while the average US worker barely got more than $1,000. ….

…. But there is another Reagan-era policy that has contributed to skyrocketing CEO pay: stock buybacks. Corporate executives have spent trillions of dollars buying back their company’s own stocks since the 1980s to temporarily boost its value. …. Over the past 15 years or so, firms have spent an estimated 94 percent of corporate profits on buybacks and dividends. That means companies are barely investing any of their profits in their companies, or workers. Which is why we end up with charts that look like this. ….

Exposing Wage Theft Without Fear: States Must Protect Workers from Retaliation

Source: Laura Huizar, National Employment Law Project, June 2019

From the press release:
Social justice movements, such as the Fight for $15, #MeToo, and striking Uber drivers, rely on workers to come forward to assert their rights—but workers who dare challenge an employer’s policies or misconduct know that they will almost certainly face retaliation. Even highly-paid Google workers have been forced to protest retaliation following a mass walkout criticizing Google’s handling of sexual harassment. A new NELP survey of laws in all 50 states and the District of Columbia shows, however, that state laws overwhelmingly fail to provide workers with essential retaliation protections.

In Exposing Wage Theft Without Fear: States Must Protect Workers from Retaliation, NELP offers a first-of-its-kind analysis focusing on how state laws protect—or fail to protect—workers when they challenge wage theft by lodging complaints with employers or government agencies, filing lawsuits, or engaging in public actions, for example…..

Staff Pay Levels for Selected Positions in Senators’ Offices, FY2001-FY2018

Source: R. Eric Petersen, Raymond T. Williams, Congressional Research Service, CRS Report, R44324, June 11, 2019

Levels of pay for congressional staff are a source of recurring questions among Members of Congress, congressional staff, and the public. There may be interest in congressional pay data from multiple perspectives, including assessment of the costs of congressional operations, guidance in setting pay levels for staff in Member offices, or comparison of congressional staff pay levels with those of other federal government pay systems.

This report provides pay data for 16 staff position titles that are typically found in Senators’ offices. The positions include the following: Administrative Director, Casework Supervisor, Caseworker, Chief of Staff, Communications Director, Constituent Services Representative, Counsel, Executive Assistant, Field Representative, Legislative Assistant, Legislative Correspondent, Legislative Director, Press Secretary, Scheduler, Staff Assistant, and State Director.The following table provides the change in median pay levels for these positions, in constant 2019 dollars between FY2017 and FY2018

Staff Pay Levels for Selected Positions in House Member Offices, 2001-2018

Source: R. Eric Petersen, Raymond T. Williams, Congressional Research Service, CRS Report, R44323, June 11, 2019

Levels of pay for congressional staff are a source of recurring questions among Members of Congress, congressional staff, and the public.There may be interest in congressional pay data from multiple perspectives, including assessment of the costs of congressional operations, guidance in setting pay levels for staff in Member offices, or comparison of congressional staff pay levels with those of other federal government pay systems.

This report provides pay data for 15 staff position titles that are typically used in House Members’ offices. The positions include the following: Caseworker, Chief of Staff, Communications Director, Constituent Services Representative, Counsel, District Director, Executive Assistant, Field Representative, Legislative Assistant, Legislative Correspondent, Legislative Director, Office Manager, Press Secretary, Scheduler, and Staff Assistant. The following table provides the change in median pay levels for these positions in constant 2019 dollars,between 2017 and 2018…..

‘Can’t pay their bills with love’: In many teaching jobs, teachers’ salaries can’t cover rent

Source: Erin Richards and Matt Wynn, USA TODAY, June 5, 2019

New teachers can’t afford median rent almost anywhere. Our city-by-city analysis validates a theme in teacher strikes. But that’s not the full story.

Related:
Low relative pay and high incidence of moonlighting play a role in the teacher shortage, particularly in high-poverty schools
The third report in “The Perfect Storm in the Teacher Labor Market” series
Source: Emma García and Elaine Weiss, Economic Policy Institute, May 9, 2019

What this series finds:
The teacher shortage is real, large and growing, and worse than we thought. When indicators of teacher quality (certification, relevant training, experience, etc.) are taken into account, the shortage is even more acute than currently estimated, with high-poverty schools suffering the most from the shortage of credentialed teachers.

What this report finds:
The perceived financial hardships in teaching are real. This report adds to the compelling evidence in Sylvia Allegretto and Larry Mishel’s recent research showing that teachers are paid a lot less than other comparable college graduates. After accounting for education, experience, and other factors known to affect earnings, teachers’ weekly wages in 2018 were 21.4 percent lower than their nonteaching peers. In 1996 that weekly wage penalty was 6.3 percent. Our report identifies other indicators that teacher pay is too low and declining. For example, in the 2015–2016 school year, 59.0 percent of teachers took on additional paid work either in the school system or outside of it—up from 55.6 percent in the 2011–2012 school year. A majority of moonlighters (44.1 percent) were taking on second jobs within the school system, such as coaching, student activity sponsorship, mentoring other teachers, or teaching evening classes; 18.2 percent were working outside of the school system; and 5.7 percent were receiving compensation based on student performance. For these teachers, moonlighting makes up a substantial 7.0 percent share of their combined base salary and extra income. Financial stress is greater for teachers in high-poverty schools. Relative to teachers in low-poverty schools, teachers in high-poverty schools are paid less ($53,300 vs. $58,900), receive a smaller amount from moonlighting ($4,000 vs. $4,300), and the moonlighting that they do is less likely to involve paid extracurricular or additional activities for the school system that generate extra pay but also help them grow professionally as teachers (data are for 2015–2016). Data suggest a relationship between low salaries and quitting. Teachers who ended up quitting before the 2012–2013 school year had lower base salaries ($50,800 vs. $53,300) and were more likely to be supplementing their base pay with work outside the school system in the year before they quit (18.4 percent vs. 16.3 percent).

State of the Union: Millennial Dilemma

Source: Stanford Center on Poverty and Inequality, May 2019

The annual Poverty and Inequality Report provides a unified analysis that brings together evidence across such issues as poverty, employment, income inequality, health inequality, economic mobility, and educational access to allow for a comprehensive assessment of where the country stands. In this year’s issue, the country’s leading experts provide the latest evidence on how millennials are faring.

Contents include:

Executive Summary
David B. Grusky, Marybeth Mattingly, Charles Varner, and Stephanie Garlow
With each new generation, there’s inevitably much angst and hand-wringing, but never have we worried as much as we worry about millennials. We review the evidence on whether all that worrying is warranted.

Racial and Gender Identities
Sasha Shen Johfre and Aliya Saperstein
The usual stereotypes have it that millennials are embracing a more diverse and unconventional set of racial and gender identities. Are those stereotypes on the mark?

Student Debt
Susan Dynarski
Often tagged the “student debt generation,” millennials took out more student loans, took out larger student loans, and defaulted more frequently. Here’s a step-by-step accounting of how we let this happen.

Employment
Harry J. Holzer
Labor force activity has declined especially rapidly among young workers. The good news: We know how to take on this problem.

Criminal Justice
Bruce Western and Jessica Simes
The imprisonment rate has fallen especially rapidly among black men. Does this much-vaunted trend conceal as much as it reveals?

Education
Florencia Torche and Amy L. Johnson
The payoff to a college degree is as high for millennials as it’s ever been. But it’s partly because millennials who don’t go to college are getting hammered in the labor market.

Income and Earnings
Christine Percheski
When millennials entered the labor market during the Great Recession and its aftermath, there were uniformly gloomy predictions about their fate. Does the evidence bear out such gloomy predictions?

Social Mobility
Michael Hout
Millennials have a mobility problem. And it’s partly because the economy is no longer delivering a steady increase in high-status jobs.

Occupational Segregation
Kim A. Weeden
Are millennial women and men working side by side in the new economy? Or are their occupations just as gender-segregated as ever?

Poverty and the Safety Net
Marybeth Mattingly, Christopher Wimer, Sophie Collyer and Luke Aylward
Millennial poverty rates at age 30 are no higher than those of Gen Xers at the same age. But this stability hides a problem: Millennials are replacing a falloff in earnings with large increases in government assistance programs.

Housing
Darrick Hamilton and Christopher Famighetti
Housing reforms during the civil rights era helped to narrow the white-black homeownership gap. But those gains have now been completely lost … and the racial gap in young-adult homeownership is larger for millennials than for any generation in the past century.

Social Networks
Mario L. Small and Maleah Fekete
Millennials are not replacing face-to-face networks with online ones. Rather, they’re a generation that’s found a way to do it all, forging new online ties while also maintaining the usual face-to-face ones.

Health
Mark Duggan and Jackie Li
It might be thought that, for all their labor market woes, at least millennials now have health care and better health. How does this story fall short?

Policy
Sheldon Danziger
A comprehensive policy agenda that could help millennials … and other generations too.

Museum Workers Share Their Salaries and Urge Industry-Wide Reform

Source: Zachary Small, Hyperallergic, June 3, 2019

Over 660 arts professionals have added to a spreadsheet detailing their salaries. The pay for these prestigious positions may be lower than you expect. ….

…. Because the spreadsheet entries are published anonymously, Hyperallergic could not independently verify the accuracy of all the listed salary information; however, the information does match long-running perceptions about pay in the field. (New entries are being added through this Google Form.) Although positions like curatorial assistant are competitive and prestigious entry points into museum work, the pay is relatively low with starting salaries running between $30,000 and $50,000. By comparison, the select few who rise through the ranks to become chief curators at major museums can expect to make well within six figures. ….