Category Archives: Compensation

Three Big Ideas for a Future of Less Work and a Three-Dimensional Alternative

Source: Cynthia Estlund, Law and Contemporary Problems, Vol. 82 no. 3, 2019

….At the same time, each of those three big ideas holds within it an essential component of a sound three dimensional response to the uncertain but real prospect of job losses. In lieu of UBI [universal basic income], we should expand universal social benefits—starting with health care and higher education—and income support for the working and non-working poor. In lieu of a federal job guarantee, we should ramp up public investments in infrastructure, social and community services, and early education, all of which would address unmet societal needs while creating decent jobs. And in lieu of (or at least before) reducing weekly hours of work across the board, we should expand access to paid leaves, holidays, and vacations, as well as voluntary part-time work and retirement security; we could thereby spread work and meet varied individual needs and preferences through days, weeks, months, and years of time off.

In combination, these three interventions—expanded universal social benefits and income support, public investments in physical and social infrastructure and the job creation those will entail, and wider access to paid leaves and respites from work—would advance core objectives of each of the three big ideas while muting their disadvantages. Together they would both cushion and offset automation-related job losses, while spreading the work that remains and maintaining or boosting incomes. This trio of policies could and should also be funded in a way that helps to redistribute income from the top to the bottom of an egregiously and increasingly lopsided income distribution.

…..In what follows, I will fill in the outlines of this argument. Part II will briefly set out some normative priors about the multiple ends we should be pursuing as we face a future of less work. A long Part III will take up each of the Three Big Ideas, briefly tracing their genealogy and identifying some strengths and weaknesses of each. Part IV will return to the core aspirations of the Three Big Ideas, and sketch a combination of the three – a three-dimensional strategy – that can preserve much of the good while avoiding much that is problematic in the more single-minded Three Big Ideas. ….

U.S. Nursing Assistants Employed in Nursing Homes: Key Facts (2019)

Source: PHI, September 3, 2019

From the abstract:
This research brief provides the latest annual snapshot of U.S. nursing assistants employed in nursing homes, including key demographics and a variety of wage and employment trends. This year’s research found that 581,000 nursing assistants support older people and people with disabilities in nursing homes. Nursing assistants are injured more than three times more frequently than the typical American worker, and earn a median hourly wage of $13.38 and a median annual income of $22,200.

Key Takeaways:
– The number of nursing assistants employed in nursing homes in the U.S. declined from just over 599,000 in 2008 to 581,000 in 2018.
– Nursing assistants earn a median hourly wage of $13.38 and a median annual income of $22,200.
– Nursing homes will need to fill nearly 680,000 nursing assistant job openings between 2016 and 2026.

U.S. Home Care Workers: Key Facts (2019)

Source: PHI, September 3, 2019

From the abstract:
This research brief provides the latest annual snapshot of the U.S. home care workforce, including key demographics and a variety of wage and employment trends. This year’s research found that nearly 2.3 million home care workers earn a median hourly wage of $11.52 and about $16,200 annually. One in six home care workers lives below the federal poverty line and more than half rely on some form of public assistance.

Key Takeaways:
– Nearly 2.3 million home care workers provide personal assistance and health care support to older adults and people with disabilities.

– From 2016 to 2026, the home care sector will need to fill 4.2 million home care worker job openings.

– With a median hourly wage of $11.52 and inconsistent work hours, home care workers typically earn $16,200 annually.

How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom

Source: Joseph Marchand, Jeremy G. Weber, Journal of Policy Analysis and Management, Early View, August 29, 2019
(subscription required)

From the abstract:
Whether improved local economic conditions lead to better student outcomes is theoretically ambiguous and will depend on how schools use additional revenues and how students and teachers respond to rising private sector wages. The Texas boom in shale oil and gas drilling, with its large and localized effects on wages and the tax base, provides a unique opportunity to address this question that spans the areas of education, labor markets, and public finance. An empirical approach using variation in shale geology across school districts shows that the boom reduced test scores and student attendance, despite tripling the local tax base and creating a revenue windfall. Schools spent additional revenue on capital projects and debt service, but not on teachers. As the gap between teacher wages and private sector wages grew, so did teacher turnover and the percentage of inexperienced teachers, which helps explain the decline in student achievement. Changes in student composition did not account for the achievement decline but instead helped to moderate it. The findings illustrate the potential value of using revenue growth to retain teachers in times of rising private sector wages.

The Work of the Future: Shaping Technology and Institutions

Source: MIT Task Force on the Work of the Future, Fall 2019

….How can we move beyond unhelpful prognostications about the supposed end of work and toward insights that will enable policymakers, businesses, and people to better nav-igate the disruptions that are coming and underway? What lessons should we take from previous epochs of rapid technological change? How is it different this time? And how can we strengthen institutions, make investments, and forge policies to ensure that the labor market of the 21st century enables workers to contribute and succeed?

To help answer these questions, and to provide a framework for the Task Force’s efforts over the next year, this report examines several aspects of the interaction between work and technology. We begin in Section 1 by stating an underlying premise of our project: work is intrinsically valuable to individuals and to society as a whole, and we should seek to improve rather than eliminate it. The second section introduces the broader concerns that motivated the Task Force’s formation. Here we address a paradox: despite a decade of low unemployment and generally rising prosperity in the United States and industrialized countries, public discourse around the subject of technology and work is deeply pessimistic. We argue that this pessimism is neither misguided nor uninformed, but rather a reflection of a decades-long disconnect between rising productivity and stagnant incomes for the majority of workers…..

Fiscal Consolidation and Public Wages

Source: Juin-jen Chang, Hsieh-Yu Lin, Nora Traum, Shu-Chun Susan Yang, International Monetary Fund (IMF), IMF Working Paper No. 19/125, June 2019

From the abstract:
A New Keynesian model with government production, public compensation, and unemployment is fit to U.S. data to study the macroeconomic and fiscal effects of public wage reductions. We find that accounting for the type of government spending is crucial for its macroeconomic implications. Although reductions in public wages and government purchases of goods have similar effects on total output and the fiscal balance, the former can raise private output slightly, in contrast to the substantial contractionary effects of the latter.In addition, the baseline estimation finds that exogenous public wage reductions decrease private wages. Model counterfactuals show that sufficiently rigid nominal private wages can reverse the response of private wages, as the rigidity dampens the labor reallocation effect from the public to private sector that exerts downward pressure on private wages.

Ten Years After: The Development of a University Staff Pay System—Reflections and the Lessons Learned

Source: Steven L. Thomas, Lyn M. McKenzie, Compensation & Benefits Review, OnlineFirst, July 22, 2019
(subscription required)

From the abstract:
This article documents the development and implementation of a new staff pay system for a large, comprehensive, public university. It discusses decisions that were made, alternatives chosen, important process issues and outcomes, as a guide to administrators and human resource staff into what can be expected as new job structures, pay and performance management systems are developed. The authors review program successes and remaining challenges from the perspective of 10 years after system implementation.

The Political Theory of Universal Basic Income

Source: Juliana Uhuru Bidadanure, Annual Review of Political Science, Vol. 22, 2019
(subscription required)

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: ….