Robert J. Thornton

Interpreting semilogarithmic regression coefficients in labor research

Labor economists frequently misinterpret coefficients of variables in semilogarithmic regression equations. The proportional rates of change in the dependent variable that are implied by these coefficients are often erroneously assumed to be valid over arbitrarily large intervals. This note provides mathematical and empirical evidence on how serious the error can be. A simple formula is developed for making correct interpretations of semilog regression coefficients.

Do New Male and Female College Graduates Receive Unequal Pay

We analyze the female-male gap in starting-salary offers for new college graduates using data from the annual surveys of the National Association of Colleges and Employers (NACE), unique (and proprietary) data that have not previously been used for this purpose. A major advantage of working with a data set on salaries for new college graduates is that we can remove the possible influence of gender differences in experience, promotions, job changes, and other factors on the salary gap. We find that as much as 95 percent of the overall gender gap in starting-salary offers can be explained by differences in college majors selected.

Licensing One of the World’s Oldest Professions: Massage

In this paper, we analyze the development of occupational regulation of massage therapists in the United States as well as the effects of state licensing and certification on their earnings and numbers. Our results suggest that massage therapists working in states with licensing receive an earnings premium of as much as 16.2 percent. We also find some evidence that licensing seems to reduce the number of massage therapists. We find less convincing evidence that certification has had similar effects. We argue that, taken together, our results suggest that licensing restricts entry at the expense of consumers and that its effects are less likely to be explained by other competing factors.

The Consistency and Predictability of Grievance Arbitration Awards

In this study of the consistency and predictability of grievance arbitration awards, 177 arbitrators named awards and 188 management and union representatives predicted awards for six hypothetical cases—-three variants of a just-cause dismissal case and three of a contract interpretation case. The awards were quite variable: in one variant of each case, somewhat more than 70% of the arbitrators agreed on the award, but in all other instances the level of agreement was below 57%. This inconsistency does not appear to be related to the arbitrators age, gender, educational degree, or experience. On the other hand, the authors find that the distribution of predictions by management representatives corresponded fairly well to the distribution of awards.

Licensing in the Barbering Profession

Analysis of the licensing requirements in the barbering profession in the United States. Economic impacts of effective occupational licensing; Effects of barber licensing on the supply of barbers; Changes in licensing provision. (Abstract copyright EBSCO.)

Overinvestment in College Training

When producers are uncertain or have imperfect information about the profitability of adopting new technology, their adoption behavior depends on the endowment of human capital and the investment in adoption information. This study analyzes the role of ...

A Benchmark Profile of Economics Departments in 15 Private Universities

Abstract During the spring of 1999, the authors completed a benchmarking survey of 15 economics departments in private universities as part of a strategic planning exercise. All are selective medium-sized institutions that experience roughly the same types of market pressures and compete for the same types of students. The authors report the information gleaned from the survey concerning such items as departmental resources, teaching loads, class sizes, departmental research expectations, and weights given to research, teaching, and service in salary determination and promotion. The authors believe that their results and methods might be useful to other economics departments engaging in bench-marking exercises.

Toward a Utility-Based Theory of Loss in Wrongful Death Cases

A fictional attorney in a recent episode of the television show L.A. Law remarks that the legal aspects of wrongful death cases are nearly as distorted as tax law. In the case at issue (the death of a young boy in an auto accident), the lawyer is able to obtain more dollar damages in the survival action (by arguing that the deceased suffered greatly in the moments before his death) than he is able to obtain in the wrongful death action (which depends only on the estimated value of future net income.)

Teacher Unionism and Collective Bargaining in England and Wales

This article analyzes the teacher union movement and the system of teacher bargaining in England and Wales. Although the teacher union movement is marked by an unusually high degree of organizational fragmentation, salaries in both countries are negotiated in a single forum at the national level called the “Burnham Committee.” This committee is unusual in the British context in that it has a statutory basis and negotiates fixed-term agreements which are legally enforceable. The author traces the postwar history of teacher negotiations and shows that the Burnham system has experienced increasing difficulties in the past decade, such as a rise in teacher militancy and a frequent resort to arbitration and other forms of government intervention in the negotiation process.

The Effect of Household Technology on Weight and Health Outcomes among Chinese Adults: Evidence from China’s “Home Appliances Going to the Countryside” Policy

We utilize the variations in home appliance adoption generated by China’s Home Appliances Going to the Countryside policy to isolate the actual effects of household technology on weight and health outcomes. Using difference-in-differences and instrumental variable approaches, we find that the policy-induced technological change has increased the probability of being obese and the incidence of being sick or injured for rural women but has had no impact on rural men. Our results also indicate that household technology has increased female labor force participation but has decreased women’s overall levels of energy expenditure.