Essays on Labor and Development Economics

Essays on Labor and Development Economics

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The second essay investigates how the Wrongful Discharge Laws (WDLs), imposed during the 1970s and 1980s, affect workers in the United States. Most economists conjecture that WDLs increase firing costs for firms. In terms of employment, the literature found a negative or at best zero impact. In terms of wages, most papers found no impact. Thus the laws seemed to adversely affect an qaverageq worker. These papers implicitly assumed that labor force was homogeneous. They did not recognize the fact that labor can be heterogeneous and that firms may treat different types of labor as different forms of input. My study attempts to overcome this limitation. I treat labor as heterogeneous (high-skilled and low-skilled) thus allowing the laws to affect firms' decisions regarding not only the quantity of labor input but also the combination of different types of labor input. The key finding of this essay is that WDLs are associated with increases in employment of high-skilled labor, a result unacknowledged in early studies. WDLs, however, adversely affect employment of low-skilled labor, a result consistent with the literature.5 It has not been widely documented why only 12 states have adopted the exception.6 Perhaps the complexities involved ... 5 Page 10. 6 The total number of states that currently recognize the good faith exception is 11 since New Hampshireanbsp;...

Title:Essays on Labor and Development Economics
Publisher:ProQuest - 2007

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