In honor of Labor Day in the United States, we’re pleased to feature a collection of articles from ILR Review. The collection includes nine articles related to Labor Economics. One paper, entitled “Workforce Reduction at Women-Owned Businesses in the United States,” authors David A. Mats and Amalia R. Miller find an association between female business leadership and increased labor hoarding. The abstract for the paper:
The authors find that privately held firms owned by women were less likely than those owned by men to downsize their workforces during the Great Recession. Year-to-year employment reductions were as much as 29% smaller at women-owned firms, even after controlling for industry, size, and profitability. Using data that allow the authors to control for additional detailed firm and owner characteristics, they also find that women-owned firms operated with greater labor intensity after the previous recession and were less likely to hire temporary or leased workers. These patterns extend previous findings associating female business leadership with increased labor hoarding.
Another paper in the collection, entitled “Revisiting the Minimum Wage–Employment Debate: Throwing Out the Baby with the Bathwater,” from authors David Neumark, J.M. Ian Salas, and William Wascher revisit the minimum wage debate with a new approach to the research design. The abstract for the paper:
The authors revisit the long-running minimum wage–employment debate to assess new studies claiming that estimates produced by the panel data approach commonly used in recent minimum wage research are flawed by that approach’s failure to account for spatial heterogeneity. The new studies use research designs intended to control for this heterogeneity and conclude that minimum wages in the United States have not reduced employment. The authors explore the ability of the new research designs to isolate reliable identifying information, and they test the designs’ untested assumptions about the construction of better control groups. Their analysis reveals problems with the new research designs. Moreover, using methods that let the data identify the appropriate control groups, their results reaffirm the evidence of disemployment effects, with teen employment elasticities near −0.15. This evidence, they conclude, still shows that minimum wages pose a tradeoff of higher wages for some against job losses for others.
You can read these two articles and more from the Labor Economics collection from ILR Review free for the next two weeks by clicking here. Want to stay current on all of the latest research from ILR Review? Click here to sign up for e-alerts!
Happy Labor Day from Management INK!
*Coffee shop image attributed to Dave Bleasdale (CC)