ASSET PRICING MODEL: Introduction 2

Turning to the supply side, the provision of liquidity is a key activity of the banking sector. Banks occur a nonnegligible credit risk, as the financial condition of companies may deteriorate by the time they utilize their credit facilities. Furthermore, the rate of utilization of credit facilities (which varies substantially over time) is not independent […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

ASSET PRICING MODEL: Introduction

Starting with the capital asset pricing model (CAPM, derived by Sharpe 1964, Lintner 1965 and Mossin 1966), market finance has emphasized the role of consumers’ time preference and risk aversion in the determination of asset prices. The intertemporal consumption-based asset pricing model (e.g., Rubinstein 1976, Lucas 1978, Breeden 1979, Harrison-Kreps 1979, Cox et al. 1985, […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Conclusions

The primary objective of this paper is to re-assesses the connection between declining unionization and widening wage inequality using data for men and women from the early 1970s and early 1990s. The evidence points to three main findings on this issue. First, since the fraction of women belonging to unions has been relatively stable over […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Unionization and Inequality in the Public and Private Sectors 3

Examination of the unadjusted union-nonunion wage gaps in Figures 8 and 9 suggests that the effects of unions on wages in the public sector have changed relatively little over the past 20 years, while the union wage effects for the least skilled workers in the private sector may have declined slightly. In the absence of […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Unionization and Inequality in the Public and Private Sectors 2

In contrast to the pattern of increasing union membership in the public sector, the data in Table 7 and Figure 5 show uniformly decreasing private sector union rates. On average union rates fell by about 50 percent, with larger declines for younger and less educated workers, but fairly similar declines across regions and in most […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Unionization and Inequality in the Public and Private Sectors

In light of the diverging rates of union membership in the public and private sectors it is interesting to ask how much changing unionism has affected the inequality or wages with the two sectors. Tables 6 and 7 present some simple comparisons of union rates across different subgroups of the two sectors, while Figures 4 […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Allowing for Differences Across Skill Groups 3

The calculations summarized in Table 5 use equation (6) together with the data in Table 4 to re-estimate the contribution of changing unionism to rising wage inequality. I have computed the effects two ways: using the unadjusted union-nonunion wage gaps presented in Table 4; and using the adjusted wage gaps derived from my 1996 paper. […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Allowing for Differences Across Skill Groups 2

The figures illustrate several interesting features of the union and nonunion wage structures. First, the rotation of the 1993 lines relative to the 45 degree line indicates that both union and nonunion wage outcomes have “widened” across skill groups in the past two decades. This is particularly true for women: the difference in predicted wages […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Allowing for Differences Across Skill Groups

As noted earlier, there are several reasons to suspect that the naive calculations in Table 3 may overstate the role of unions in widening wage inequality. Using the framework developed in Section I it is possible to calculate union inequality effects within and across skill groups, allowing for differences in union coverage and union effects […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments

RISING WAGE INEQUALITY: Data 4

Effects of Unions on Wage Inequality Naive Estimates As a starting point for considering the effect of changing unionism on the inequality of wages, it is useful to begin with simple “two-sector” framework. Recall that if the union density u and the union relative wage effect are both constant across skill groups, then the effect […]

Tags: , ,

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • Twitter
  • RSS
read comments
Pages: 1 2 Next
 Page 1 of 2  1  2 »