Showing results 1 to 3 of approximately 3.(refine search)
Expecting the Unexpected: Job Losses and Household Spending
Unemployment risk constitutes one of the most significant sources of uncertainty facing workers in the United States. A large body of work has carefully documented that job loss may have long-term effects on one?s career, depressing earnings by as much as 20 percent after fifteen to twenty years. Given the severity of a job loss for earnings, an important question is how much such an event affects one?s standard of living during a spell of unemployment. This blog post explores how unemployment and expectations of job loss interact to affect household spending.
AUTHORS: Karahan, Fatih; Pilossoph, Laura; Brendan Moore
Minimum Wage Impacts along the New York-Pennsylvania Border
The federal minimum wage, currently set at $7.25 per hour, has remained unchanged for the longest stretch of time since its 1938 inception under the Fair Labor Standards Act. With the real purchasing power of the federal minimum wage eroded by inflation, many states and municipalities have raised their local minimum wages. As of July 2019, fourteen states plus the District of Columbia?home to 35 percent of Americans?have minimum wages above $10 per hour, as do numerous localities scattered across other states. New York is among a handful of states?along with California, Connecticut, Illinois, Maryland, Massachusetts, and New Jersey?that has passed legislation to eventually increase minimum wages to $15 per hour. While New York began raising its minimum wage from $7.25 per hour in 2014, neighboring Pennsylvania has left its minimum wage unchanged at the federal floor. Minimum-wage variation between contiguous states has allowed researchers to evaluate the respective impacts on employment and average earnings. In this post, we gauge the effect of New York?s recent minimum-wage hikes by comparing low-wage sectors in counties along the New York-Pennsylvania border.
AUTHORS: Brendan Moore; Bram, Jason; Karahan, Fatih
Job Ladders and Careers
Workers in the United States experience vast differences in lifetime earnings. Individuals in the 90th percentile earn around seven times more than those in the 10th percentile, and those in the top percentile earn almost twenty times more. A large share of these differences arise over the course of people?s careers. What accounts for these vastly different outcomes in the labor market? Why do some individuals experience much steeper earnings profiles than others? Previous research has shown that the ?job ladder??in which workers obtain large pay increases when they switch to better jobs or when firms want to poach them?is important for wage growth. In this post, we investigate how job ladders differ across workers.
AUTHORS: Karahan, Fatih; Ozkan, Serdar; Brendan Moore