According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

A role congruity theory of prejudice toward female leaders proposes that perceived incongruity between the female gender role and leadership roles leads to 2 forms of prejudice: (a) perceiving women less favorably than men as potential occupants of leadership roles and (b) evaluating behavior that fulfills the prescriptions of a leader role less favorably when it is enacted by a woman. One consequence is that attitudes are less positive toward female than male leaders and potential leaders. Other consequences are that it is more difficult for women to become leaders and to achieve success in leadership roles. Evidence from varied research paradigms substantiates that these consequences occur, especially in situations that heighten perceptions of incongruity between the female gender role and leadership roles.

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Role congruity theory of prejudice toward female leaders.

We investigate conditions sufficient for identification of average treatment effects using instrumental variables. First we show that the existence of valid instruments is not sufficient to identify any meaningful average treatment effect. We then establish that the combination of an instrument and a condition on the relation between the instrument and the participation status is sufficient for identification of a local average treatment effect for those who can be induced to change their participation status by changing the value of the instrument. Finally we derive the probability limit of the standard IV estimator under these conditions. It is seen to be a weighted average of local average treatment effects.

Evolution and Rationality Some Recent Game-Theoretic Results. Identification and Estimation of Local Average Treatment Effects

Over the past few years, there has been a steadily increasing interest on the part of economists in happiness research. We argue that reported subjective well-being is a satisfactory empirical approximation to individual utility and that happiness research is able to contribute important insights for economics. We report how the economic variables income, unemployment and inflation affect happiness as well as how institutional factors, in particular the type of democracy and the extent of government decentralization, systematically influence how satisfied individuals are with their life. We discuss some of the consequences for economic policy and for economic theory.

What Can Economists Learn from Happiness Research

On April 1, 1992 New Jersey's minimum wage rose from $4.25 to $5.05 per hour. To evaluate the impact of the new law we surveyed over 400 fast food restaurants in New Jersey and Pennsylvania before and after the rise in the minimum. Comparisons of the changes in wages, employment, and prices at stores in New Jersey relative to stores in Pennsylvania (where the minimum remained constant at $4.25 per hour) provide simple robust estimates of the effect of the increased minimum wage. Our empirical findings challenge the conventional notion that a rise in the minimum causes employment to decline. Relative to stores in Pennsylvania, fast food restaurants in New Jersey increased employment by 2.5 employees per store. We also compare employment changes at stores in New Jersey that were initially paying $5.00 per hour or more (and were therefore largely unaffected by the new law) to the employment changes at lower-wage stores, where the new law raised wages by 10-15 percent. Stores that were unaffected by the minimum wage had the same employment growth as stores in Pennsylvania, while stores that had to increase their wages increased their employment. Finally, we evaluate theoretical models that might explain these results.

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Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania

This paper considers the linkage of empirical estimates of wage discrimination between two groups, introduced by Oaxaca (1973), to a theoretical model of employers' discriminatory behavior. It is shown that, conditional on different assumptions about employers' discriminatory tastes, Oaxaca's estimators of wage discrimination can be derived. That the approach is more generally useful is demonstrated by deriving an alternative estimator of wage discrimination, based on the assumption that within each type of labor (e.g., unskilled, skilled) the utility function capturing employers' discriminatory tastes is homogeneous of degree zero with respect to labor inputs from each of the two groups. The estimators are compared empirically in an application to male-female wage differentials.

https://www.jstor.org/stable/pdfplus/145830

Employers’ discriminatory behavior and the estimation of wage discrimination

Studies of how different work practices affect organizational performance have suffered from methodological problems. Especially intractable has been the difficulty of establishing whether observed...

https://www.nber.org/system/files/working_papers/w7374/w7374.pdf

Do "High Performance" Work Practices Improve Establishment-Level Outcomes?

This paper presents new descriptive evidence regarding marital pay premiums earned by white males. Longitudinal data indicate that wages rise after marriage, and that cross-sectional marriage premiums appear to result from a steepening of the earnings profile. Data from a company personnelfile that includes information on job grades and supervisor performance ratings reveal large marital status pay differences within a narrow range of occupations (managers and professionals) and environments (a single firm). Married workers tend to be located in higher paying job grades; there are very small pay differentials within grades. Married men receive higher performance ratings than single men; as a result, they are much more likely to be promoted. Controlling for rated performance, however, eliminates the promotion differential. Sanders Korenman is an assistant professor of economics and public affairs at Princeton University and is a faculty associate of the Office of Population Research at Princeton University and a research affiliate of the National Bureau of Economic Research (NBER). David Neumark is an assistant professor of economics at the University of Pennsylvania and a research affiliate of the NBER. Korenman wishes to acknowledge the Hewlett Foundation and the Harvard University Center for Population Studies for financial support. The authors are grateful to James Medofffor making available an extract from the company personnelfile; questions regarding data availability should be directed to Professor James

https://www.jstor.org/stable/pdfplus/145924.pdf

Does Marriage Really Make Men More Productive

Using panel data on state minimum wage laws and economic conditions for the years 1973-89, the authors reevaluate existing evidence on the effects of a minimum wage on employment. Their estimates indicate that a 10% increase in the minimum wage causes a decline of 1-2% in employment among teenagers and a decline of 1.5-2% in employment for young adults, similar to the ranges suggested by earlier time-series studies. The authors also find evidence that youth subminimum wage provisions enacted by state legislatures moderate the disemployment effects of minimum wages on teenagers.

Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws

Panel data on consumer bank deposit interest rates reveal asymmetric impacts of market concentration on the dynamic adjustment of prices to shocks. Banks in concentrated markets are slower to raise interest rates on deposits in response to rising market interest rates, but are faster to reduce them in response to declining market interest rates. Thus, banks with market power skim off surplus on movements in both directions. Since deposit interest rates are inversely related to the price charged by banks for deposits, the results suggest that downward price rigidity and upward price flexibility are a consequence of market concentration.

https://www.jstor.org/stable/pdfplus/2118485.pdf

David Neumark

Papers

Employers’ discriminatory behavior and the estimation of wage discrimination

Do "High Performance" Work Practices Improve Establishment-Level Outcomes?

Does Marriage Really Make Men More Productive

Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws

Market Structure and the Nature of Price Rigidity: Evidence from the Market for Consumer Deposits