I am happy to share the first draft of our paper, Labor Markets, Wage Inequality, and Hiring Selection https://lnkd.in/e2xKKSsk jointly written with Alessandra Pizzo (Paris 8). Hiring and poaching workers are essentially selective processes. Employers receive a number of applications, interview them, and select and hire the most qualified. This implies that workers with higher productivity earn more and are employed more often. CPS data is consistent with this story: we robustly show that states with a higher employment rate and a lower job finding probability exhibit more wage inequality. How to explain these facts? We offer a new theoretical framework to rationalize these ideas and the evidence. These *obvious* points are NOT captured in sequential search models: employers optimally set a threshold and hire everyone above it. In contrast, our nonsequential model generates an endogenous distribution of wages that is shaped by the selection of firms. In turn, hiring selection affects the composition of the applicants. The solution of the model is a differential equation whose solution maps quantiles from the population distribution of worker productivities into the applicant distribution. We also show that, compared to a Walrasian benchmark, hiring selectivity stretches the right tail of the distribution and compresses the left tail, which matches the empirical evidence. We estimate/calibrate the model and find that an increase in mean productivity of workers explains the positive relation between unemployment and inequality. As productivity increases, vacancies increase, implying fewer applicants per vacancy and less selectivity. The distribution of employed and unemployed becomes more alike, reducing inequality. Finally, we find the most efficient allocation given search/selectivity frictions. For non-college workers, unemployment is too high. We show that optimality is achieved through a regressive tax schedule. Why? Top workers make it attractive for employers to post more vacancies, but few of them end up hiring stars. Top workers create a positive externality for the rest, who find more jobs available. By subsidizing top workers, the government would increase vacancies and employment.
Benjamin Villena’s Post
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Employers added 272,000 jobs in May – much more than expected – as the unemployment rate also ticked up to reach 4% for the first time in over two years, the Labor Department reported on Friday. Read more below. #SmallBusinessHR #HR #Recruiting #MayJobsReport #EmploymentData #JobMarket #UnemploymentRate #LaborStatistics #JobGrowth #EconomicUpdate #Workforce #LaborMarket #USJobs #MonthlyJobsReport #EmploymentFigures #EconomicIndicators #JobNumbers #JobsReportMay #EmploymentTrends #USLabor #JobSector #EconomicAnalysis #LaborDepartment #TAResources #TheTalentConnector
Statement by Acting Secretary of Labor Su on May jobs report
dol.gov
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The labor market continued to cool in August. Job creation among private employers slowed for the fifth straight month and wage growth was stable. The ADP National Employment Report is available at https://lnkd.in/dZdUgYvN. #labormarket #economy
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Our analysis of the Bureau of Labor Statistics jobs report finds the economy added 2.7 million jobs overall in 2023 as workers made their voices heard. “In 2023, workers made history by joining together for better jobs,” said Rebecca Dixon, NELP president and CEO. “From strikes to pushes to increase the minimum wage in states + cities, workers used their power to win + build momentum for 2024.” Read our full analysis: https://lnkd.in/eyghFNv4
December Jobs Report: The Power of Workers Will Shape Job Market in 2024
https://www.nelp.org
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We are excited to share our new resource: "One Fair Wage: Women Fare Better In States With Equal Treatment For Tipped Workers." This new resource tracks tipped workers' pay and quality of life in states with “One Fair Wage” policies, where employers must pay tipped workers the full minimum wage before tips. Learn more about how #OneFairWage positively impacts earnings, reduces poverty rates, and narrows the gender wage gap, particularly benefiting women and women of color. 🔍 Key findings include: Median earnings for tipped workers are significantly higher in "One Fair Wage" states compared to states where employers can pay workers the federal tipped minimum wage level (just $2.13 per hour before tips!). The poverty rate for women tipped workers is substantially lower. Parents in tipped jobs see even greater improvements in their financial well-being. Read the fact sheet and learn more about the benefits of equal treatment for tipped workers. https://lnkd.in/egHKJZmb
One Fair Wage: Women Fare Better in States with Equal Treatment for Tipped Workers - National Women's Law Center
nwlc.org
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Headline employment numbers and exciting announcements from politicians do not tell the whole story. With nonfarm payrolls set to be released on Friday, May 3rd, I dive into the data to reveal the sad state of our job market. #jobs #unemployment #nonfarm #economy #useconomy #jobsreport #employment
(10m) The Sad State of Jobs
macrobeans.info
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Interesting to see...hiring has slowed down significantly and it's looking like wage growth will too. If you click into the link and look on our Research Institute's website, you can see it appears to be leveling out, vs. really dipping continuing to dip. So, not necessarily all bad news. One could even argue this is a good thing after a wild, wild west type boom in hiring, pay, inflation, etc. that never seemed like it would reach it's limits. #Business #Finance #Economy #Jobs #jobReports #employment #unemployment #jobhunting #jobhunt #hiring
The labor market continued to cool in August. Job creation among private employers slowed for the fifth straight month and wage growth was stable. The ADP National Employment Report is available at https://lnkd.in/dZdUgYvN. #labormarket #economy
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The racial wage gap may be shrinking, but it’s still got a ways to go. Nationwide, Black people make 76 cents to white people’s dollar, according to the Department of Labor. And it turns out that disparity starts pretty early on. In the fourth quarter of 2023, the median weekly earnings for full-time wage and salaried white workers ages 16 to 24 was $747 per week, according to the Bureau of Labor Statistics. The median weekly earnings for full-time wage and salaried Black or African American 16-to-24-year-olds was $614. Though a smaller gap than the national one, that still works out to be about 82 cents to white workers’ dollar. Many people in this age group are only starting their careers and haven’t had much time to accrue work experience. So what explains their disparity in pay?
The racial wage gap starts as early as 16 for Black workers—and results in ‘a lifetime of consequences,’ says expert
cnbc.com
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Passionate Digital Marketer | Helping Brands Excel in the Digital Landscape | Let's Connect, Collaborate, and Create Growth Together!
This is why I will always ask for the highest amount of compensation for the job, because I’m sure even that is the lower end for my counterparts. Still looking for work! portfolio below: https://lnkd.in/d6CFq4Q5 #marketing #digitalmarketing #wages #jobhunting #jobs #jobhunt2024 #dei #blackentrepreneurs #business #seo #wagesandsalaries
The racial wage gap may be shrinking, but it’s still got a ways to go. Nationwide, Black people make 76 cents to white people’s dollar, according to the Department of Labor. And it turns out that disparity starts pretty early on. In the fourth quarter of 2023, the median weekly earnings for full-time wage and salaried white workers ages 16 to 24 was $747 per week, according to the Bureau of Labor Statistics. The median weekly earnings for full-time wage and salaried Black or African American 16-to-24-year-olds was $614. Though a smaller gap than the national one, that still works out to be about 82 cents to white workers’ dollar. Many people in this age group are only starting their careers and haven’t had much time to accrue work experience. So what explains their disparity in pay?
The racial wage gap starts as early as 16 for Black workers—and results in ‘a lifetime of consequences,’ says expert
cnbc.com
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Disparity in pay can lead to several harmful consequences; Employee Dissatisfaction, Reduced Innovation and Creativity comes to mind. Feeling undervalued or being unfairly compensated, leads to diminished motivation to excell. This affects contributing to innovative ideas and solutions- stifling creativity, hindering problem-solving, and impeding progress in typical corporate roles.
The racial wage gap may be shrinking, but it’s still got a ways to go. Nationwide, Black people make 76 cents to white people’s dollar, according to the Department of Labor. And it turns out that disparity starts pretty early on. In the fourth quarter of 2023, the median weekly earnings for full-time wage and salaried white workers ages 16 to 24 was $747 per week, according to the Bureau of Labor Statistics. The median weekly earnings for full-time wage and salaried Black or African American 16-to-24-year-olds was $614. Though a smaller gap than the national one, that still works out to be about 82 cents to white workers’ dollar. Many people in this age group are only starting their careers and haven’t had much time to accrue work experience. So what explains their disparity in pay?
The racial wage gap starts as early as 16 for Black workers—and results in ‘a lifetime of consequences,’ says expert
cnbc.com