Robert M. Hutchens

Do Job Opportunities Decline with Age

This paper presents a new form of evidence supporting the hypothesis that job opportunities decline with age. Segregation curves computed from the January 1983 Current Population Survey reveal that newly hired old workers tend to be clustered in a smaller set of industries and occupations than both newly hired young workers and all old workers.

Segregation curves, Lorenz curves, and inequality in the distribution of people across occupations

Abstract This paper takes the analytic framework developed to measure inequality in the distribution of income and extends it to the problem of measuring inequality in the distribution of people across population groups (e.g. inequality in the distribution of women across occupations). The paper discusses ‘segregation curves’ and shows that, like Lorenz curves, they are related to value judgments about the nature of inequality. It also derives several new numerical measures of inequality in people across groups. The paper closes with an application: an analysis of U.S. occupational segregation by race and gender between 1958 and 1978.

Numerical measures of segregation: desirable properties and their implications

Abstract This paper proposes seven properties for a ‘good’ measure of segregation, and derives the class of numerical measures that corresponds to these properties. Measures in this class can be explicitly linked to segregation curves, much like numerical measures of income inequality can be explicitly linked to Lorenz curves. The paper evaluates the dissimilarity and Gini segregation indexes from the perspective of the seven properties, and introduces an alternative index — the square root index.

AFDC and the Formation of Subfamilies

This paper analyzes the relationship between AFDC benefits and a single mothers propensity to reside in a subfamily-i.e., within another family rather than in her own independent household. We find that some states pay lower benefits to mothers living in subfamilies. In those states, a single mother may forego a substantial amount of AFDC benefits if she chooses to reside in a subfamily rather than establish her own household. Using data from the 1984 Current Population Survey, we address the question of whether differences in AFDC benefits affect the probability that a mother will reside in a subfamily. We find that the lower benefits paid to subfamilies have discernible but small effects, and that the overall level of AFDC benefits has no effect.

Employer Willingness to Permit Phased Retirement: Why are Some More Willing Than others?

Under phased retirement, an older worker remains with his or her employer while gradually reducing work hours and effort. Although older workers often express an interest in phased retirement, actual occurrences are evidently rare. A possible explanation is that employers limit opportunities for phased retirement. Using a survey of employers conducted in 2001–2002, the authors examine how and why establishments differed in their willingness to permit an older full-time white-collar worker to take phased retirement. The survey indicates that employers were often willing to permit the option, but primarily as an informal arrangement. The results also indicate that opportunities for phased retirement were greater in establishments that employed part-time white-collar workers, allowed job sharing, and had flexible starting times. Opportunities tended to be more limited in establishments where white-collar workers were unionized.

Changes in AFDC Tax Rates, 1967-1971

This paper presents new measures of the implicit marginal tax rate on earnings in the Aid to Families with Dependent Children (AFDC) program. Previous measures suffer from two types of bias. First, they do not adequately control for nonlinear relationships between AFDC payments and earnings. Second, they are estimated in truncated samples. Through explicit consideration of the AFDC payment formula, methods are devised for eliminating both biases. Using these methods, new estimates of AFDC tax rates are obtained for 1967 and 1971. The data reveal that while federal policy caused tax rates to decline in most states, some states counteracted the federal initiative by altering AFDC program parameters.

Distributional Equity in the Unemployment Insurance System

This study examines the distribution of unemployment insurance benefits across income classes. The new data presented here support previous claims that a large share of unemployment insurance benefits flow to middle- and upper-income groups. The data also show, however, that earlier studies underestimated the extent to which lower income groups benefit from the program. In addition, the paper investigates whether the household survey data used in studies such as this are so flawed by reporting errors that they yield biased results. The author concludes that such errors have only a minimal effect. The paper closes with an analysis of why upper income groups receive a relatively large share of unemployment insurance benefits.

Occupational segregation with economic disadvantage: an investigation of decomposable indexes

Purpose – This paper considers methods for decomposing indexes that incorporate economic disadvantage into a measure of segregation. According to such indexes, segregation in high-economic-status occupations is worse than similar segregation in low-economic-status occupations. The paper presents three decompositions of these indexes. Methodology/Approach – The paper first characterizes a class of segregation indexes that include economic disadvantage in the index. It then develops mathematical methods for decomposing a change in such an index. The change is decomposed into two or more components: components that indicate either the effect of changes in economic disadvantage or the effect of changes in a standard measure of segregation – a measure that essentially ignores economic disadvantage. The paper then implements the decompositions using data on U.S. occupational segregation by gender between 1970 and 2000. Findings – The primary finding is that a segregation index that incorporate economic disadvantage can be decomposed in interesting ways. A secondary finding is that such indexes indicate reduced segregation between 1970 and 2000. The dominant forces associated with the reduction were (a) the convergence of occupational gender ratios and (b) the movement of women out of less advantaged occupations and into the comparatively well-compensated professional and managerial occupations. Research limitations/Implications – The 1970–2000 results are mainly illustrative. They are based on three broad occupational categories for which there were compatible earnings data, and the analysis could quite feasibly be done with more detailed occupational categories.

Unemployment insurance and strikes

In several states workers who are unemployed because of a labor dispute can collect unemployment benefits. Due to imperfect experience rating, such policies can create a public subsidy to strikes. This study examines whether these policies affect strike activity. In particular, both cross-sectional and fixed effects models are employed to test whether an increase in the public subsidy inherent in unemployment insurance leads to an increase in strike frequency.

Job Opportunities for Older Workers: When Are Jobs Filled with External Hires?

This paper examines why firms sometimes employ older workers, but tend to not hire new older workers for the same job. It focuses on one aspect of that phenomenon: the propensity for firms to fill jobs from the inside rather than hire someone new from the outside. Using a survey of establishments with information on a white collar job currently held by an older worker, the paper tests hypotheses on what types of jobs are likely to be filled from the outside. Several of the results point to the potential importance of asymmetric information, whereby the firm has better information on key characteristics of insiders versus outsiders.