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12 million salaried workers are missing

  • Daniel S. Hamermesh

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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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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  1. David H. Autor, 2000. "Outsourcing at Will: Unjust Dismissal Doctrine and the Growth of Temporary Help Employment," NBER Working Papers 7557, National Bureau of Economic Research, Inc.
  2. 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.
  3. 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.
  4. 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.
  5. Katharine G. Abraham & Susan N. Houseman, 1993. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," NBER Working Papers 4390, National Bureau of Economic Research, Inc.
  6. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 811-846, August.
    • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
  7. Daniel, K., 1991. "Does Marriage Make Men More Productive?," University of Chicago - Economics Research Center 92-2, Chicago - Economics Research Center.
  8. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
  9. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
  10. Sheldon E. Haber & Robert S. Goldfarb, 1995. "Does Salaried Status Affect Human Capital Accumulation?," ILR Review, Cornell University, ILR School, vol. 48(2), pages 322-337, January.
  11. 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.
  12. Daniel S. Hamermesh, 1998. "Changing Inequality in Markets for Workplace Amenities," NBER Working Papers 6515, National Bureau of Economic Research, Inc.
  13. 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.
  14. 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.
  15. 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.
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