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Policy Studies
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Labor
Heritage Employment Reports: Summer Slowdown of Jobs Continues in August
By Rea Hederman, Jr. and James Sherk, The Heritage FoundationWebMemo, 09/03/2010
The rebound in the labor market that was so promising in the spring wilted under the summer heat. Private employment has increased by just 78,000 during the last three months. While the growth in hours worked is an indication that labor market demand is increasing, businesses are very reluctant to add permanent workers. The economy is very unlikely to experience the sort of quick recovery from this recession that it went through in 1983 and 1984.
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Labor
Measuring Labour Markets in Canada and the United States
By Amela Karabegovic, et al., Fraser InstituteFraser Institute Occasional Paper, 09/03/2010
This study provides an overview of labour market conditions in Canada and the United States. It examines the performance of labour markets in the two countries and offers explanations for that performance. Measuring differences in performance and examining explanations for those differences enables us to understand why conditions in the labour market are better in some regions than in others. As a result, we can begin to examine how public policy and other factors affect labour markets.
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Labor
The Auto Industry Bailout: How the Shrinking UAW Buys Influence
By Timothy P. Carney, Capital Research CenterLabor Watch, 07/07/2010
While the United Auto Workers has lost half its members, the union retains its political influence and sits on $1 billion in assets. The union showed its clout last year when the Obama administration bailed-out and reorganized the failed automaker Chrysler. Even while the federal government was forcing Chrysler’s creditors to accept pennies on the dollars owed them it was transferring Chrysler’s ownership to the UAW, protecting the union’s retiree health and pension benefits.
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Labor
Unions on the Waterfront: Why is Big Labor Prone to Corruption?
By Robert VerBruggen, Capital Research CenterLabor Watch, 06/03/2010
Corruption is usually the main topic of news stories about American labor unions. Why? One problem is structural. Labor law gives unions monopoly power. Collective bargaining gives unions a way to tap into employers’ and workers’ pockets. And a compliant U.S. Department of Labor looks the other way. National Review Associate editor Robert VerBruggen looks to labor law in other countries for possible ways to cut down on union corruption in the future.
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Labor
The Effect of Labor Market Regulations on Educational Attainment
By Aparna Mathur, American Enterprise InstitutePaper, 05/26/2010
This paper develops a theoretical and an empirical model to study the effect of higher employment protection on investments in tertiary education. The mechanism driving this link is the effect of employment protection on worker flows. Worker flows (which are synonymous with job flows in my model), are significantly lower with firing taxes, leading to fewer vacancies available per unemployed worker (also referred to as market tightness). This reduces the probability of finding a job and therefore lowers the expected return to education. In equilibrium, with high firing taxes, only the highest ability individuals invest in costly education. I test my model using panel data for more than a 100 countries over the period 1970-2005. Using data from the World Bank as well as from the Barro-Lee dataset on education, I find that, controlling for other factors, more flexible labor markets (or those with lower employment protection) are associated with relatively higher tertiary enrollment and graduation rates than more rigid markets.
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Labor
The Impact of the Employee Free Choice Act on the U.S. Economy
By Lee E. Ohanian, American Enterprise InstituteStudies, 04/28/2010
The Employee Free Choice Act (EFCA) is one of the most significant proposed changes to labor law of the last half century. If passed, EFCA, at least in its current form, will change how a union is recognized and significantly amend bargaining between a union and employer if an initial agreement cannot be reached. This report analyzes the economic implications of EFCA on the U.S. economy. In this increasingly globally competitive economy, increasing wages and expanding the pool of high paying jobs requires increasing worker productivity, not suppressing competition through increased unionization. Alternative policies, including subsidies for education and job training, can promote wage growth for lower-skilled workers more efficiently than unionization.
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Labor
Obama Appointees with Strong Union Ties Could Push National Labor Relations Board in Wrong Direction
By Thomas P. Gies, American Enterprise InstituteOn the Issues, 04/20/2010
How might recess appointments to the National Labor Relations Board (NLRB) affect federal labor law? Controversial appointee Craig Becker is known for advocating policies that fall outside the mainstream view of labor laws. Although the views of one member of the NLRB will not automatically translate into dramatic policy changes, concerns that members of the NLRB may rewrite important principles of federal labor laws through litigation are not unfounded. Whether President Barack Obama’s NLRB would be able to enact key provisions of the Employee Free Choice Act through litigation rather than congressional action remains to be seen.
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Labor
When Paternalism Meets Bogus Economics
By Kristian Niemietz, Institute of Economic AffairsPaper, 03/10/2010
In the thirtieth IEA Current Controversies Paper, Kristian Niemietz critiques 21 Hours, a report from the New Economics Foundation (NEF). The report proposes a gradual reduction of the standard working week to 21 hours within about a decade, to achieve three goals: make society more equal, happier, and drastically reduce carbon emissions. This paper shows that the NEF proposal would not achieve the first two goals at all, and the third one only at tremendous cost. The trade-off that people make between leisure and consumption is an entirely private matter. There is no economic rationale for third party interference.
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Labor
Sweeping The Shop Floor: A New Labor Model for America
By James Sherk, et al., Evergreen Freedom FoundationStudies, 02/18/2010
This report proposes a new model for labor relations based on the individual right to freedom of association. The authors review the history and development of the American labor movement, discuss the problems associated with the coercive, collective model, and look to New Zealand as an example of worker-oriented labor reforms. While this new model will face significant political opposition, it holds the promise of greater freedom and prosperity for workers, employers, and consumers alike.
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Labor
Davis-Bacon Suspension Would Fund 160,000 New Construction Jobs
By James Sherk, The Heritage FoundationWebMemo, 01/28/2010
President Obama should issue an executive order suspending the Davis-Bacon Act, creating 163,000 jobs with one stroke of the pen.
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