Unemployment Risk and Compensating Differential in Late-Nineteenth Century New Jersey Manufacturing
In this paper we test for the existence of compensating differentials for unemployment risk in an era before unemployment insurance. Using information gathered from manufacturing worker surveys conducted during the 1880s in New Jersey, we find that workers who faced higher probabilities of predictable unemployment spells received a small compensating differential. Low-skill laborers and operatives were partially compensated for unemployment risks; skilled craftsmen were not. Although workers were not fully compensated for the unemployment risks they accepted, the results are of interest because most previous writers, dating back to Adam Smith, doubted the existence of compensating differentials in manufacturing. Differentials are typically believed to arise in employments with pronounced seasonal components, such as agriculture and construction.
|Date of creation:||Sep 2003|
|Date of revision:|
|Publication status:||published as Averett, Susan, Howard Bodenhorn and Justas Staisiunas. "Unemployment Risk And Compensating Differentials In New Jersey Manufacturing," Economic Inquiry, 2005, v43(4,Oct), 734-749.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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- Atack, Jeremy & Bateman, Fred & Margo, Robert A., 2002.
"Part-Year Operation In Nineteenth-Century American Manufacturing: Evidence From The 1870 And 1880 Censuses,"
The Journal of Economic History,
Cambridge University Press, vol. 62(03), pages 792-809, September.
- Jeremy Atack & Fred Bateman & Robert A. Margo, 2001. "Part-Year Operation in Nineteenth Century American Manufacturing: Evidence from the 1870 and 1880 Censuses," Vanderbilt University Department of Economics Working Papers 0106, Vanderbilt University Department of Economics, revised Mar 2001.
- Jeremy Atack & Fred Bateman & Robert A. Margo, 2000.
"Productivity in Manufacturing and the Length of the Working Day: Evidence from the 1880 Census of Manufactures,"
Vanderbilt University Department of Economics Working Papers
0045, Vanderbilt University Department of Economics.
- Atack, Jeremy & Bateman, Fred & Margo, Robert A., 2003. "Productivity in manufacturing and the length of the working day: evidence from the 1880 census of manufactures," Explorations in Economic History, Elsevier, vol. 40(2), pages 170-194, April.
- Jeremy Atack & Fred Bateman & Robert A. Margo, 2000. "Productivity in Manufacturing and the Length of the Working Day: Evidence from the 1880 Census of Manufactures," Economics Working Paper Archive wp_317, Levy Economics Institute.
- Jeremy Atack & Fred Bateman & Robert A. Margo, 2000. "Productivity in Manufacturing and the Length of the Working Day: Evidence from the 1880 Census of Manufactures," Macroeconomics 0012003, EconWPA.
- Hatton, Timothy J. & Williamson, Jeffrey G., 1991. "Unemployment, employment contracts, and compensating wage differentials: michigan in the 1890s," The Journal of Economic History, Cambridge University Press, vol. 51(03), pages 605-632, September.
- Price V. Fishback, 1998. "Operations of "Unfettered" Labor Markets: Exit and Voice in American Labor Markets at the Turn of the Century," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 722-765, June.
- James, John A, 1995. "Reconstructing the Pattern of American Unemployment before the First World War," Economica, London School of Economics and Political Science, vol. 62(247), pages 291-311, August.
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