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PubMed1997

Measuring immigrant wage growth using matched CPS files.

Cross-sectional estimates of immigrant wage growth have painted an optimistic picture of the ability of immigrants to adapt to the U.S. labor market: Studies using cross-sectional data have generally found the wage growth of immigrants to exceed that of the native born. This optimistic picture of immigrant economic assimilation was challenged by the important finding that compared to earlier immigrant cohorts, recent immigrants started at much lower wages. As such, the high wage growth of immigrants relative to the native born measured in cross-sectional data may simply be the spurious result of declining immigrant earnings ability. In this paper, we match Current Population Survey samples so that the wages of individual immigrant and native-born men can be followed for one year. We find that the wage growth of immigrants does exceed that of the native born. The general finding of faster immigrant wage growth also holds when imposing the foreign-born geographic distribution upon natives, but not when imposing the native-born geographic distribution on the foreign born-a result consistent with some theories of immigrant assimilation. In each comparison, however, the actual wage growth of immigrants relative to natives is similar to the predictions of cross-sectional regressions. This similarity suggests that either there is no cohort quality bias in the cross-sectional estimates of immigrant wage growth, or that there has been a coincidental increase in immigrant wage growth as the entry wages of immigrants have fallen.

Acculturation↗
PubMed2005

Poor mental health and smoking: interactive impact on wages.

BACKGROUND: Studies have found important effects of poor mental health on labor market outcomes. The positive association between poor mental health and smoking has also been documented. This is the first study to document the separate and interactive impacts of smoking and mental health on wages. AIM: The primary aim of this study is to analyze the effect of poor mental health on wages while controlling for smoking status, and the interaction of poor mental health and smoking. We conduct separate regressions by gender. METHODOLOGY: We use data from the Community Tracking Survey for years 1996, 1998 and 2000. This survey interviews 60,000 people per cycle in the United States and collects detailed information on mental health status, smoking history and labor market outcomes. We use a two-step regression procedure to adjust for the fact that smoking and poor mental health may affect the labor market participation decision as well as wages. Separate regressions are estimated for men and women. RESULTS AND DISCUSSION: Our results confirm that poor mental health is negatively associated with wages, as is current smoking, controlling for other factors. The impact of poor mental health is associated with an almost 8% reduction in wages for males and a bit more than a 4% decline for women in our most basic specification. We add to the literature by finding that the impact of poor mental health varies substantially by smoking status for males. Men who are in both poor mental health and who smoke have the largest associated reduction (-16.3%) in wage rates, while the interaction between poor mental health and smoking is insignificant for women. LIMITATIONS: While the data set has rich detail on smoking history and information on mental health, the data set lacks information on why former smokers quit and diagnosis of mental health disorders. The complex relationships among wages, mental health, and smoking also hinder determination of causality. CONCLUSIONS AND IMPLICATIONS: Our findings suggest that both smoking and mental health are important factors in the determinations of wages and that the impact of mental health on wage rates varies by smoking status, at least for males. Our findings suggest that those who both smoke and have mental health problems, especially males, have the greatest productivity losses and are thus in the greatest need of interventions that address both issues jointly. FUTURE RESEARCH: Further economics research should address the difficult issue of the potential endogeneity of mental health, smoking, and their interactions in regressions of wages. Clinical and worksite research could be aimed at determining those work environments and treatments that are effective in helping those with mental health problems who smoke to become more productive.

Adult↗
PubMed1989

Hospital wage gradients within U.S. urban areas.

Average wages from 2,275 general hospitals in metropolitan areas across the U.S. were used to test for a wage gradient descending from hospitals in the central city through those in urbanized and finally non-urbanized areas of each county-defined metropolitan area. Significant gradients were found in MSAs of all sizes. Urbanized-area wages were 3 to 6 percent lower than those in central cities of the same metropolitan area. Non-urbanized suburban wages were 10 to 12 percent lower than those in central cities. The explanations for the gradients differ somewhat between large and small areas. For example, while the relative mix of high-wage and low-wage occupations in each hospital is a significant explanatory variable for wages in all metropolitan area sizes, the relative use of part-time workers is not significant in those metropolitan areas with fewer than 250,000 people. Relative crime in each hospital's city is highly significant in explaining relative wages only for areas with populations of more than one million.

Catchment Area, Health↗
PubMed2004

The role of wages in the migration of health care professionals from developing countries.

Several countries are increasingly relying on immigration as a means of coping with domestic shortages of health care professionals. This trend has led to concerns that in many of the source countries - especially within Africa - the outflow of health care professionals is adversely affecting the health care system. This paper examines the role of wages in the migration decision and discusses the likely effect of wage increases in source countries in slowing migration flows.This paper uses data on wage differentials in the health care sector between source country and receiving country (adjusted for purchasing power parity) to test the hypothesis that larger wage differentials lead to a larger supply of health care migrants. Differences in other important factors affecting migration are discussed and, where available, data are presented.There is little correlation between the supply of health care migrants and the size of the wage differential between source and destination country. In cases where data are available on other factors affecting migration, controlling for these factors does not affect the result.At current levels, wage differentials between source and destination country are so large that small increases in health care wages in source countries are unlikely to affect significantly the supply of health care migrants. The results suggest that non-wage instruments might be more effective in altering migration flows.

Journal Article↗
PubMedDate not supplied

Can households earning minimum wage in Nova Scotia afford a nutritious diet?

OBJECTIVE: To assess the affordability of a nutritious diet for households earning minimum wage in Nova Scotia. METHODS: Food costing data were collected in 43 randomly selected grocery stores throughout NS in 2002 using the National Nutritious Food Basket (NNFB). To estimate the affordability of a nutritious diet for households earning minimum wage, average monthly costs for essential expenses were subtracted from overall income to see if enough money remained for the cost of the NNFB. This was calculated for three types of household: 1) two parents and two children; 2) lone parent and two children; and 3) single male. Calculations were also made for the proposed 2006 minimum wage increase with expenses adjusted using the Consumer Price Index (CPI). RESULTS: The monthly cost of the NNFB priced in 2002 for the three types of household was 572.90 dollars, 351.68 dollars, and 198.73 dollars, respectively. Put into the context of basic living, these data showed that Nova Scotians relying on minimum wage could not afford to purchase a nutritious diet and meet their basic needs, placing their health at risk. These basic expenses do not include other routine costs, such as personal hygiene products, household and laundry cleaners, and prescriptions and costs associated with physical activity, education or savings for unexpected expenses. CONCLUSION: People working at minimum wage in Nova Scotia have not had adequate income to meet basic needs, including a nutritious diet. The 2006 increase in minimum wage to 7.15 dollars/hr is inadequate to ensure that Nova Scotians working at minimum wage are able to meet these basic needs. Wage increases and supplements, along with supports for expenses such as childcare and transportation, are indicated to address this public health problem.

Adult↗
PubMed1993

[The influence of politically determined wage rates on migration between Germany's new and old states].

"This paper investigates the influence of politically determined wage rates on migration between Germany's new and old states. Apart from their direct influence on expected income and hence on migration, nominal wages affect migration indirectly by the unemployment they generate. Under reasonable assumptions the relation between nominal wages and migration is negative. The long-run influence of wages on capital accumulation and hence employment opportunities emphasizes that wage policy can be used either to control the long-run population stock or to stop migration immediately. That latter requires instantaneous wage-rate adjustments and initial wage-rate undershooting." (SUMMARY IN ENG)

Demography↗