Source: David G. Blanchflower and Alex Bryson, Institute for the Study of Labor, IZA DP No. 3055, September 2007
This paper draws attention to an increase in the size of the union membership wage premium in the UK public sector relative to the private sector. We find the public sector membership wage premium is approximately double that in the private sector controlling for a full range of individual, job and workplace characteristics. Using data from the Labour Force Surveys of 1993-2006 the gap between the membership premium in the public and private sectors closes with the addition of three digit occupational controls, although significant wage premia remain in both sectors.
However, using data from the Workplace Employment Relations Survey of 2004, the public sector union membership wage premium remains roughly twice the size of the private sector membership premium having accounted for workplace fixed effects, workers’ occupations, their job characteristics, qualifications and worker demographics. Furthermore, the membership wage premium among workers covered by collective bargaining is only apparent in the public sector.
Source: Kansas City Star, August 26, 2007
Alaska is the only state that pays its governor more money than its highest-paid coach. Of course, Alaska doesn’t have college football.
In most states, the top-ranking official is paid significantly less. Here is a list of each state’s governor and his or her salary (GOV), the highest-paid coach from a state-funded school (HPC) and the highest-paid football coach (HPFC), if he’s not his state’s highest-paid coach overall.
Source: Pauline Vu, Stateline.org, October 09, 2007
The controversial idea of paying teachers based not on how long they’ve been teaching but on how much their students learn got a boost when a key congressman recently proposed adding pay-for-performance money for teachers in high-poverty schools to the next version of the federal No Child Left Behind education law.
Source: Darin Lee, Nicholas G. Rupp, Journal of Labor Economics, Volume 25, Number 4, October 2007
Since the days of Henry Ford, employers have argued that higher pay induces employees to provide additional effort. While the converse is also thought to be true, there is little empirical evidence testing this hypothesis. Not only are significant company-wide pay cuts rarely observed in practice but measures of employee effort are typically difficult to quantify. This article examines the effort responses of U.S. commercial airline pilots following a recent series of large, permanent pay cuts. Using airline on-time performance as proxy for unobservable pilot effort, we find only limited support for the hypothesis that pay cuts lower employee effort.
Source: American Library Association, press release, August 28, 2007
Analysis of data from more than 800 public and academic libraries showed the mean salary for librarians with ALA-accredited Master’s Degrees increased 2.8 percent from 2006, up $1,550 to $57,809. The median ALA MLS salary was $53,000. Salaries ranged from $22,048 to $225,000.
For the first time the non-MLS salary survey data, including 62 non-MLS positions, reported salaries for staff employed as librarians but who do not have ALA-accredited Master’s Degrees in Library Science. Non-MLS salaries ranged $10,712 to $143,700. Both printed surveys also indicate the minimal educational requirement for each position.
See also: ALA-APA Rural Library Staff Salary Survey
Source: Jared Bernstein and Lawrence Mishel, Economic Policy Institute, EPI Briefing Paper #195, September 3, 2007
From the press release:
In a new report by the Economic Policy Institute, the nation’s leading think tank on labor market trends, economists Jared Bernstein and Lawrence Mishel analyze the state of working America this Labor Day. Their report, Economy’s Gains Fail to Reach Most Workers’ Paychecks, shows the latest data on where workers stand and looks behind the numbers to the forces at work in an economy that doesn’t seem to be playing by the rules.
Source: American City and County, September 4, 2007
State employees’ salaries rose slightly from 2006 to 2007, but they still lag behind what the private sector pays for the same jobs, according a report by the Washington-based American Federation of Teacher’s (AFT) Public Employees division. The median increase of 5.7 percent for the 45 jobs included in the “2007 AFT Public Employees Compensation Survey” is the highest increase in the past five years.
Source: Fiscal Policy Institute, Labor Day 2007
From the press release: (scroll down)
Four years into an economic expansion, New Yorkers finally got a slight raise last year, according to this year’s edition of The State of Working New York. In particular, the troubled upstate economy has experienced encouraging payroll growth, with Buffalo leading the way. But overall, these modest gains stand out against a backdrop of worrisome long-term trends.
Source: John Schmitt, Margy Waller, Shawn Fremstad, and Ben Zipperer, Center for Economic and Policy Research, August 2007
From press release:
Unionization substantially raises wages and benefits even in typically low-wage occupations, according to “Unions and Upward Mobility for Low- Wage Workers”, a report released today by the Center for Economic and Policy Research and Inclusion.
The report, which analyzed 15 of the lowest-paying occupations in the United States, found that unionized workers earned about 16 percent more than their non-union counterparts. Unionized workers in these same industries were also about 25 percentage points more likely to have health insurance or a pension plan.
For workers in these low-wage industries, unionization raised their wages, on average, about $1.75 per hour. In financial terms, the union effect on employer-provided health insurance and pensions was even larger.
Source: Sarah Anderson, John Cavanagh, Chuck Collins, Sam Pizzigati, Institute for Policy Studies, and Mike Lapham, United for a Fair Economy, August 29, 2007
From press release:
With leading Presidential candidates turning up the heat on overpaid CEOs, a new report from the Institute for Policy Studies and United for a Fair Economy documents for the first time the extreme pay gaps that have opened up not just between U.S. business leaders and American workers, but between U.S. business leaders and leaders elsewhere in American — and European — society. CEOs of large U.S. companies last year averaged $10.8 million in total compensation, over 364 times the pay of the average U.S. worker, a calculation based on data from an Associated Press survey of 386 Fortune 500 companies. The top 20 private equity and hedge fund managers, pocketed an average $657.5 million, Forbes magazine estimates. That’s 22,255 times the pay of an average U.S. worker. Workers on the bottom rung of the economy have just received their first federal minimum wage increase in a decade. But the inflation-adjusted value of the new minimum, despite the hike, stands 7 percent below the minimum wage level a decade ago. CEO pay, in that decade, has increased over inflation by roughly 45 percent.