Showing papers in "Journal of Human Resources in 1971"

Sex Differences in Compensation.

Abstract: Five hypotheses explaining differences in pay between men and women were examined: wage discrimination, occupational wage levels, job choice and working conditions, fringe benefits, and qualifications and productivity of women. Data were from a 1969 survey of working conditions of American workers. A difference of /$5,000 was found in mean pay between women and men working full time in 1969. The difference was only $2,500 among nonprofessional workers, aged 22-64, with a steady job and working the same number of hours. About 42 percent of the men, compared to 27 percent of the women, reported their jobs exposed them to physical dangers or unhealthy conditions. The most important reason for the difference in the average pay of men and women is the clustering of women in lower paying jobs.

On Efficiency of Migration.

Abstract: It has been suggested that the ratio of net to gross migration measures the efficiency of migration, such that a low ratio indicates a low efficiency and a high ratio indicates a high efficiency. On the basis of this efficiency criterion, it has been suggested that since the ratio of net to gross migration declines with education, doubts are cast on the hypothesis that the level of information increases with the level of education. In this article we show that the doubts are invalid-that decreasing ratios of net to gross migration, as education increases, are due to increasing efficiency of past (and present) migration which, in turn, generate higher regional earnings equality, as education increases. Higher regional equality tends to generate more movement in the "wrong" direction-against the median income gradient.

Allocation of Resources to Health

Abstract: A fourfold classification of resources devoted to health is employed: treatment, prevention, information, and research. The typical relation between treatment and prevention is competitive, whereas that between information and research is complementary, as is the relation between the two pairs of subsystems. The four subsystems also differ in scale effects and in their temporal and spatial characteristics, affecting allocative choice between them. Using life expectancy as the dependent variable, an attempt was made to measure the significance of treatment variables, literacy (proxy for information), and potable water (proxy for prevention) for all nations in the Western Hemisphere. Both literacy and potable water proved highly significant, whereas none of the treatment variables were significantly related to life expectancy. Data from the United States also suggest a low marginal productivity of medical treatment in terms of life expectancy. Alternative explanations are discussed, together with indicated reallocation of resources away from medical treatment.

Real Earnings and Human Migration.

Abstract: The theory of human migration based on the concept of individual costs and returns from relocation has succeeded in identifying the more important factors affecting an individual's decision to move. However, while the theoretical models indicate the importance of a real earnings variable, empirical models have only considered some form of a nominal earnings variable. This article, then, outlines the analytical framework of a costs and returns approach to migration, utilizes a real earnings concept as an integral part of such a theory, subjects the resulting model to empirical test by means of regression analysis, and compares the real wage model with a nominal wage model. To accomplish this and conform as closely as possible to the theory, it was necessary to develop a method for deriving an inter-regional nominal earnings deflator from existing data to obtain real wages.

The Occupational Standing of Negroes by Areas and Industries.

Abstract: Indexes of the occupational standing of Negroes relative to whites in 1966 are presented for 45 metropolitan areas and 67 industries The most important factor in explaining differences in the indexes among areas was the citizens' attitudes towards equality for Negroes, for which we used the percentage voting for Wallace in 1968 as a proxy Rate of net in-migration was also important, but variables designed to measure differences among areas in the Negro-white education gap and in availability of public transportation proved poor predictors Among industries, Negroes have worse-than-average occupational status in industries which are more heavily involved in government contracting

On the Distribution of Costs and Benefits of Public Higher Education: Reply.

Abstract: A reply is offered to Joseph Pechman and Ira Sharkansky, who have refuted the contentions of the authors in their book, "Benefits, Costs, and Finance of Public Higher Education," which deals with the size and diStribution of costs and benefits. Pechman and Sharkansky*s critique, "The Distributional Effects of Public Higher Education in California," appears in the "Journal of Human'Resources," v5 n3 page 361-370, Summer 1970. The Hansen-Weisbrod approach involved comparing the distributional pattern of subsidies for higher education in California with the distribution of state and local taxes. It was emphasized that the final work as to the redistributional effects of all government programs cannot be written on the basis of a study of any one public service. A major objection of Pechman and Sharkansky centered on the authors* treatment of the distribution of the burden of taxes that support higher education. This issue is discussed, along with those of classifying beneficiaries and general policy implications. (LBH) * Documents acquired by ERIC include many informal unpublished * materials not available from other sources. ERIC makes every effor * * to obtain the best copy available. Nevertheless, items of marginal * * reproducibility are often encountered and this affects the quality * * of the microfiche and hardcooy reproductions ERIC makes available * via the ERIC Document Reproduction Service (EDRS). EDRS is not . * responsible for the quality of the original document. Reproductions * supplied by EDRS are the best that can be made from the original. ************* ********************** _*********************************

Economic Returns to Vocational and Comprehensive High School Graduates

Abstract: This study compares the costs of vocational and comprehensive secondary education and the labor market performances of graduates of these two types of high schools who did not attend college. The measurements of the labor market performances are in terms of earnings and employment. The data were obtained from the responses to 2,767 mail questionnaires sent in 1966 and 1967 to graduates of high schools in three major cities. Multiple regression analysis is used to measure the net effect of curriculum on the labor market performances for the two types of graduates. The analysis, based on six-year labor market experiences of high school graduates who did not attend college, suggests that the monetary returns of vocational-technical graduates are higher than those of comprehensive graduates.

High School Inputs and Their Contribution to School Performance.

Abstract: This paper examines the effects of a change in the mix of education inputs on several measures of high school performance, including both the proportion of students completing high school and the proportion continuing their education About 83 percent of the variation in the former measure and 52 percent of the variation in the latter can be explained using a linear regression model Inclusion of interaction terms in the model increases explained variation to 93 percent and 58 percent, respectively, and leads to statistically different regression coefficients The results also suggest that high schools reinforce the performance of students from middle class homes and that teachers affect school performance

The Demand for Higher Education: The Case of Medical School Applicants.

Abstract: This study analyzes determinants of student demand for medical education. Two series-total applicants to medical schools and medical school applicants with superior college records-are studied. The results indicate that student career decisions are strongly related to interoccupational differences in tuition and expected incomes. Students with "A" college records are somewhat less responsive to monetary incentives. Substantial increases in medical school tuition and fees and relatively low stipend levels have decreased student interest in medicine as a career. Income differentials also have an impact. The supply of medical education, measured by the probability of a student being accepted, has a positive effect on demand.

Race and Status in School Spending: Chicago, 1961-1966

Abstract: Previous studies have established that the race and social status of a school's student body is reflected in the levels of spending for public education. The interaction of these two factors is examined in a large metropolitan area, showing that at the beginning of the 1960s there were higher expenditures per pupil for the more privileged racial and status groups both in the central city and the suburban ring. The pressures of the civil rights movement and the new federal funds for children of poor families (1964 Education Act) each had the effect of partially equalizing expenditures. By 1966 only the schools in high status white suburbs maintained the same degree of advantage over other groups in the spending for their pupils.

A Time Series Analysis of Layoff Rates.

Abstract: This study attempts to shed some light on labor market behavior by examining layoff rates. Multiple regressions are employed to estimate layoff rate functions for 20 manufacturing industries using quarterly data. Some industries are found to postpone layoffs in the face of falling demand by at least a quarter period. Many industries apparently adjust their layoff rates to take account of the probability of rehiring their own employees. This behavior is likely to be associated with the degree of specific training that employees have. It represents a potential impediment to countercyclical policy measures.

A Benefit-Cost Analysis of the Upward Bound Program

Abstract: The private and social benefits and costs of the Upward Bound program are analyzed for white males, white females, nonwhite males, and nonwhite females, using older siblings of the same sex as a control group. Private net benefits are shown to be positive for all four sex-race classifications at discount rates of 5 and 10 percent. Social net benefits are positive at a discount rate of 5 percent, but negative at 10 percent. In addition, rather high rates of college attendance by siblings indicate that the Upward Bound program may function more as a device to identify those rather apt to go to college anyway rather than as a program to help those who would otherwise be very unlikely to go to college.

Family types and family headship: a comparison of trends among blacks and whites.

Abstract: The decrease in the proportion of husband-wife black families in recent decades has led to discussions of the breakdown of the Negro family. This hypothesis is examined, along with the hypothesis that the economic status of black men accounts for the instability of black families. The findings indicate that a growing proportion of adult Negroes are heading families. Differential rates of increase, especially the sharp rise in headship rates among black women, explain the changing distribution of families by type. Rather than confirming a trend toward a breakdown of the black family, these data report the changing living arrangements of adults. Available information indicates that socioeconomic status is positively related to the likelihood that a man will head a husband-wife family.

A Simple Hypothesis of Income Distribution

Abstract: Income distributions across American cities have remarkably different shapes. This article attempts to explain that observation. After a brief review of the income distribution literature, a theory of an area's income distribution is proposed which can account for the dissimilar shapes. The theory focuses upon the industry mix of an area and ignores other factors. For reasons of data availability, the theory is tested using data from states. Approximately 88 percent of the variance is explained, which lends supports to the hypothesis that factors other than industry mix do not strongly affect the shape of the income distribution or are correlated with industry mix.

Incentive Effects of Some Pure and Mixed Transfer Systems.

Abstract: : Direct income transfers to the poor are considered by many a necessary, if insufficient, weapon in the war on poverty. The most widely discussed instrument for implementing such a transfer is the negative income tax. A promising competitor, which is just beginning to receive the attention it deserves, is the wage subsidy. Since most of the discussion on income maintenance has turned on the labor supply effects of various alternatives, the document considers it as an important feature. (Author)

Effects of Improved Housing On Worker Performance.

Abstract: This study is a theoretical and empirical investigation of the impact of housing improvement on worker productivity, health, and absenteeism. A model is proposed which considers the interaction of housing improvement with other forms of human capital investment. Empirical evidence from a four-year study of the performance of a sample of rehoused factory workers in Mexico is presented. It is found that the method of wage determination and the reaction of workers to a changed set of economic opportunities generated by rehousing have an important impact on the return from investment in improved housing.

Bonuses, Quotas, and the Employment of Black Workers.

Abstract: The purpose of this study is to compare the consequences for employers and black workers of racial quotes, as opposed to bonus (training grant) systems. The author found the quota system preferable to the simple bonus system on the grounds that the bonus tended to reward firms for having poor pre-bonus ethnic ratios and provided the opportunity for profiteering on the part of racist employers; whereas the quota system benefited black workers without paying tribute to racism. A "modified" bonus system was devised which incorporated the advantages of both quota and bonus with few of the disadvantages of either. An examination of the "modified" bonus system with respect to (a) its effect upon black wage rates and (b) the consequences of the "raiding" of blacks from one firm by another gave rise to a final minor modification in the recommended bonus system.

Influences on the Migration of Canadian Professionals.

Abstract: The human capital approach has increased our understanding of migration as an act of investment and highlighted the importance of geographical movements by capital-laden professional manpower. This article analyzes some determinants of migration for such personnel and gauges the relative importance of costs and benefits for professional manpower migrating between Canada and the U.S. Determinants of migration, in order of statistical significance, were U.S. education, highest degree, employment mobility, ethnicity, and region of origin. An important conclusion is that sending Canadians to the U.S. for graduate education entails a high risk of nonreturn. The results also cast doubt on the view of Canada as a bridge in the migrational flow from the rest of the world to the U.S.

The Economics of Labor Force Participation: A Review Article.

Abstract: This gigantic book summarizes over half a decade of research on labor force participation, based primarily on data from the 1940, 1950, and 1960 United States Census of Population. Some results of this research have appeared previously,' but this volume presents what is by far the authors' most extensive examination of the economics of labor force participation. Treating the subject of labor force participation as essentially an investigation of individual, or family, labor supply decisions, Bowen and Finegan divide their work into several categories, each of which treats a different demographic subset of the United States population and/or makes use of a different way of analyzing the data. The demographic categories are: (1) men 25 to 54 years old ("Prime Age Males"); (2) married women 15 to 54 years old; (3) single women 24 to 54 years old; (4) and (5) men and women over 54 years old ("Older Persons"); and (6) young people aged 14-24 years ("Younger Persons"). For each of these population categories, the authors conduct cross-sectional analysis utilizing aggregate data (primarily metropolitan area averages) from the 1940, 1950, and 1960 Censuses, with the major emphasis being placed on the analysis of the 1960 data. Cross-sectional analysis is also performed on disaggregate data from the .001 sample of the 1960 Census, and behavior over time is analyzed by means of quarterly averages of monthly data from the Current Population Survey 1949-65. The volume is divided into three major parts, entitled "Explaining Labor Force Participation," "Unemployment and Labor Force Participation," and a set of "General Appendices" in which the detailed regression results are reported. The authors do an ex-

Operating Expenditures and Sponsored Research at U.S. Medical Schools: An Empirical Study of Cost Patterns

Abstract: Program costs for four-year U.S. medical schools for 1964-65 have been estimated using multiple regression analysis. Expenditures were the dependent variables, and program workloads (for example, students enrolled) were the independent variables. The influence of state ownership and research emphasis on expenditures were also tested. Separate analyses were done for (1) sponsored research expenditures, and (2) all expenditures less sponsored research. The estimates of expenditures (less sponsored research) per student are comparable to the few available published figures for medical school program costs (based on faculty time studies). The results also indicate that sponsored research induces additional nonsponsored expenditures and that state schools are more expensive than nonstate schools. The results of our investigation of scale economies are inconsistent, but the best model shows a U-shaped average cost curve for the medical undergraduate program. Sponsored research expenditures show little relation to the size of medical undergraduate programs and are less at state schools.

Criteria for Public Investment in the Two-Year College: A Program Budgeting Approach.

Abstract: The two-year college differs in many important respects from the fouryear one. Typically, students in the former carry greater academic risk, come from lower-income families, and have a larger nonwhite population. Most of the school's resources are devoted to career-oriented education and to the diverse needs of its adult community. Benefits consist of incremental lifetime earnings imputable to the two-year school. These earnings reflect higher starting salaries and higher rates of annual income growth, labor force participation, and employment (over high school graduates). Earnings are calculated for eight cohorts of black and white, male and female, and career and four-year college transfer students. Costs include explicit public and private outlays and the implicit cost of foregone income for full-time students. The internal rate of return, conservatively estimated, is 18 percent, consistent with the results of other studies of higher education.

Manpower Requirements for National Objectives in the 1970's

Abstract: The reputation of the author and the National Bureau of Economic Research will arouse anticipations in the prospective reader. They are justified and will be fulfilled. A representative NBER publication, this is a work of impressive scholarship and conscientious attention to detail (with craftsmanship more evident than brilliance) which never strays far from the advancement of empirically testable propositions and the application of statistical tests. By my count there are 132 pages of text and 33 pages of uniformly excellent graphs. Notwithstanding this ratio of pictures to words, the style of writing and level of discourse are \"unpopular\" enough to make the book inaccessible to all but technicians. For this narrow readership, the work is a substantially unqualified success. The statistical tests are appropriate for their empirical propositions, and the author appreciates the limitations in his data and refrains from going beyond the justifiable conclusions. Easterlin's book contains analytical work of an original nature, a genuinely creative use of statistics, and enough data (not readily available elsewhere) in convenient form to commend it as a reference work. The scope of the book can best be indicated by a few of its more interesting and mildly controversial conclusions, as selected by a labor economist who finds them all substantially correct. (1) Cause-and-effect relationships between population change and economic change work both ways, and economists who regard population as an exogenous variable risk grave error. (2) Laborforce analysts who treat immigration as an exogenous variable terminating in about 1920 make the same risk; economic forces are more causally important in explaining the past than floods and famines, and immigration is still an important soure of labor-force growth. (3) The \"additional worker\" theory (sick for a long time and dead for several years) may now be considered buried. It is possible to write an important book on labor force and economic change without mentioning Woytinsky, even in a footnote. (4) The anti-Woytinskyites who believe the Bureau of Labor Statistics' labor-force projections are too low (because they have uncovered substantial quantities of discouraged workers through statistical analysis of the household data since 1947) have overstated their case, and the BLS projections are more reasonable than their rival's projections when we take a longer view. (5) Increased labor force participation by women has economic causes more important than the sociological ones and can be explained better in terms of the demand for female labor than in terms of its supply. A cycle specialist would no doubt wish to choose quite a different list, and the present list easily could be expanded. Readers of this Review who find the aforementioned propositions interesting and at least partly open to question should read Easterlin's book. Roger L. Bowiby Associate Professor Department of Economics University of Tennessee

Estimating Patterns of Labor Mobility.

Abstract: This article develops some novel and fairly simple statistical techniques that enable an analyst to infer the geographic movement of a selected group of workers for which only its geographic distribution at two points in time is known. By making use of the known movements of some reference group expressed as a transition matrix, one can determine what the hypothetical distributions would have been if the selected group had moved in the same pattern as the reference group. The differences between the hypothetical and actual distributions for the selected group permit some interesting inferences regarding movement between regions. These techniques can be applied to a variety of problems other than those considered in the article.

Occupational Choice, High School Graduation, and Investment in Human Capital.

Abstract: High school students are exhorted to remain in high school until graduation. Our "common sense" a priori feeling that a high school diploma is a wise investment is supported by evidence showing that the rate of return to high school completion is, on average, very high. Yet the high school student often makes the conscious choice to drop out. In an effort to understand this behavior, the present value of lifetime earnings attributable to completion of high school is computed, both for broad demographic groups and for specific occupational categories. The author finds, as others have, that the return to high school graduation is, indeed, high. But what is true generally is found not to be true for specific occupations. For students who have some specific occupations in mind, high school graduation does not appear justified on economic grounds, when past cross-sectional earnings patterns are used to predict the future.