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12 million salaried workers are missing

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  • Daniel S. Hamermesh

Abstract

Evidence from Current Population Surveys, various cohorts of the National Longitudinal Surveys, and the Panel Study of Income Dynamics suggests that the fraction of American employees who were paid salaries held constant from the late 1960s through the late 1970s, and continued to hold constant or perhaps fell slightly thereafter through the late 1990s. An analysis that accounts for the changing industrial, occupational, demographic, and economic structure of the work force shows that this fraction was 9 percentage points below what would have been expected in the late 1970s. This shortfall is not explained by growth in the temporary help industry, declining unionization, institutional changes in overtime or wage payment regulation, the increasing openness of American labor and product markets, or convergence of nonwage aspects of hourly and salaried employment. The author suggests several alternative explanations. (Author's abstract.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 55 (2002)
Issue (Month): 4 (July)
Pages: 649-666

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Handle: RePEc:ilr:articl:v:55:y:2002:i:4:p:649-666

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References

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  1. Scheinkman, Jose A. & Soutter, Christine L. & Glaeser, Edward Ludwig & Laibson, David I., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
  2. Marcello M. Estevao & Saul Lach, 1999. "The Evolution of the Demand for Temporary Help Supply Employment in the United States," NBER Working Papers 7427, National Bureau of Economic Research, Inc.
  3. Katharine G. Abraham & Susan N. Houseman, 1994. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," Book chapters authored by Upjohn Institute researchers, in: Rebecca M. Blank (ed.), Social Protection Versus Economic Flexibility: Is There a Trade-off?, pages 59-93 W.E. Upjohn Institute for Employment Research.
  4. Auriol, Emmanuelle & Friebel, Guido & Pechlivanos, Lambros, 1999. "Teamwork Management in an Era of Diminishing Commitment," CEPR Discussion Papers 2281, C.E.P.R. Discussion Papers.
  5. Charles Brown, 1990. "Firms' choice of method of pay," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(3), pages 165-182, February.
  6. Daniel, K., 1991. "Does Marriage Make Men More Productive?," University of Chicago - Economics Research Center 92-2, Chicago - Economics Research Center.
  7. Sheldon E. Haber & Robert S. Goldfarb, 1995. "Does salaried status affect human capital accumulation?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 322-337, January.
  8. Trejo, Stephen J, 1991. "The Effects of Overtime Pay Regulation on Worker Compensation," American Economic Review, American Economic Association, vol. 81(4), pages 719-40, September.
  9. Daniel S. Hamermesh, 1999. "Changing Inequality In Markets For Workplace Amenities," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1085-1123, November.
  10. Frey, Bruno S, 1993. "Does Monitoring Increase Work Effort? The Rivalry with Trust and Loyalty," Economic Inquiry, Western Economic Association International, vol. 31(4), pages 663-70, October.
  11. Fama, Eugene F, 1991. "Time, Salary, and Incentive Payoffs in Labor Contracts," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 25-44, January.
  12. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
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  14. David H. Autor, 2000. "Outsourcing at Will: Unjust Dismissal Doctrine and the Growth of Temporary Help Employment," JCPR Working Papers 153, Northwestern University/University of Chicago Joint Center for Poverty Research.
  15. Sanders Korenman & David Neumark, 1991. "Does Marriage Really Make Men More Productive?," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 282-307.
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Cited by:
  1. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," Harvard Institute of Economic Research Working Papers 2096, Harvard - Institute of Economic Research.
  2. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc.
  3. Kuhn, Peter J. & Lozano, Fernando A., 2006. "The Expanding Workweek? Understanding Trends in Long Work Hours Among U.S. Men, 1979-2004," IZA Discussion Papers 1924, Institute for the Study of Labor (IZA).

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