Amenities and the labor earnings function

Article Abstract:

Desirable locations are, other things equal, expected to be characterized by a mix of higher rents or lower wages. That is, if one area is more attractive than others, immigration would occur, driving up the demand for land (hence raising rents) and increasing the supply of labor (hence lowering wages). The in-movement will continue until utility is the same across locations in equilibrium. Failing to hold constant amenities in the traditional earnings functions employed by labor economists will result, then, in omitted-variable bias if worker characteristics (years of schooling, union membership, and so on) are correlated with amenities. By way of illustration, our empirical analysis suggests that sa much as 50 percent of the apparent return to unionization may be due to the impact of undesirable amenities, resulting in compensating higher wages, in areas of union strength - unionization is being credited with wage gains that properly should be attributed to climate and other (dis)amenities. Similar, though smaller, effects on other coefficients of the earnings function variables are presented. (Reprinted by permission of the publisher.)

Buildings and facilities, Business enterprises, Wages, Wages and salaries

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Managing human resource shortages in a unionized setting: best practices in air traffic control

Article Abstract:

Human resource shortages require effective human resource management (HRM). Findings from research about ongoing labor shortages in air traffic control (ATC) are used to build a preliminary theory of appropriate HRM responses. Our international sample of major ATC agencies generally developed a set of best HRM practices to attract, motivate, and retain human assets. Key factors included (1) cultural and institutional norms, (2) technological change, (3) union responses, and (4) organizational form and structure (e.g., civil service versus commercial firms). While ATC's rare human aptitudes, lengthy training to develop firm-specific human capital, and lifelong employment may limit the preliminary theory's general applicability, crucial lessons emerge about human resource planning. (Reprinted by permission of the publisher.)

Airports, flying fields, & services, Air Traffic Control, Business Personnel Management, Management, Human resource management, Labor supply, Labor force

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Alcohol in the workplace: a research note

Article Abstract:

Drinking in the workplace is a serious concern for both unions and managements. The typical response to this problem is increased monitoring of blood-alcohol levels, a practice unions find offensive and managements find expensive. This note analyzes the advantages of controlling drinking in the workplace by substituting lower blood-alcohol limits for monitoring blood-alcohol levels. (Reprinted by permission of the publisher.)

Research, Employee alcoholism

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