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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
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China is experiencing the strange problem of not having enough workers at some of its factories. As a result, factory owners are being forced to raise wages to bring in additional help. It’s a phenomenon that’s not likely to end anytime soon. (Updated September, 2007) |
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Much of the focus of the immigration debate has centered on poor workers moving to rich countries. But there is a growing class of rich, skilled workers who migrate in search of income and/or benefits. (Updated September, 2007) |
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A new idea floating through Congress involves the government subsidizing a portion of the lost wages when a worker loses a job as a result of globalization and ends up taking a job that pays lower wages. Some Democrats love the idea, but others—including organized labor unions—are adamantly opposed. (Updated March, 2007) |
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Farmers in rural areas are beginning to see a decline in the availability of vets to help their large animals. Since 1990, the number of large animal vets has declined by about 25%, and it's because of simple economics: more money can be made with small animals than with large. (Updated February, 2007) |
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What makes a painting by Gustav Klimt worth $88 million? A later Cezanne worth $37 million, but an early Cezanne for only $1.1 million? Usually those differences get chalked up to that aphorism about beauty being in the eye of the beholder. But an economist at the University of Chicago think that the value of the beauty can be statistically modeled. (Updated January, 2007) |
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Those who oppose raising the minimum wage in the U.S. argue that such raises increase the costs of employing workers, which reduces demand for low-wage workers, which in turn ultimately takes money out of these workers' pockets. If this argument rings true, then why are six states going to the polls in November to raise the minimum wage in their states, and then index it to inflation thereafter? Why do 21 other states set their minimum wages higher than the federal minimum wage level? (Updated November, 2006) |
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The number of unionized workers in the US fell to 13% of the workforce by 2005, and there's no sign that participation rates will rise again, unless unions are able to get what their members want. Or so they think. (Updated October, 2006) |
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Economic theory has long held that people may be paid different wages for different reasons without those differences necessarily relating to gender discrimination. Referred to as compensating differentials, these differences may include willingness to take on risk, need to travel, willingness to work beyond the scope of the job description, etc, and account for a significant difference in pay of similarly trained workers. The balance is then accounted for by looking at discrimination, based on age, gender, etc. (Updated October, 2006) |
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Recent scandals involving the "backdating" of stock options for executives has called the use of stock options to motivate top managers into question. This article suggests that, while some people have used the incentives for their own gain, we need not throw out the entire system when the system itself isn't flawed. (Updated August, 2006) |
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Wal-Mart announced in August that it will agree to unionize all of its stores in China. In fact, the superstore giant will work closely with the Chinese government to get the unions operating in the stores. Aligning itself with the All-China Federation of Trade Unions is a step in a significantly different direction for the retail giant; can unionizing its stores in the U.S. be far behind? (Updated August, 2006) |
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China, until recently the leader in low-wage production, is experiencing labor market changes that could have significant effect on the global marketplace: It can’t find enough workers. In Guangdong Province, factories were short over a half million workers last year, and in Fujian Province, factories were short 300,000 workers. As a result, wages in Chinese factories are on the rise—an increase of almost 25% over the last three years. (Updated June 2006) |
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The news often shows illegal immigrants taking jobs from decent tax-paying Americans. But legal immigration is suffering mightily in the wake of immigration reform--and that could cost the U.S. dearly. (Updated May 2006) |
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Recent research indicates that a growing number of occupations require state licensing as a precondition for employment. In fact, twice as many people are now working in licensed positions than those working in unionized jobs, a big twist from 20 years ago. Why? (Updated March 2006) |
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The New York Metropolitan Transportation Authority (MTA), which oversees New York City’s subway and bus lines, is going toe to toe with the TWU (Transportation Workers’ Union) Local 100. Neither side is blinking. (Updated December 2005) |
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Why do people make seemingly questionable decisions? Are they actually doing what’s in their best interests? Thomas Schelling, a Nobel-Prize winning economist, seems to think so. (Updated November 2005) |
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In John Steinbeck’s classic novel of the depression called The Grapes of Wrath, Oklahoma residents wiped out by the dustbowl (the Okies) moved to California to earn their daily living picking agricultural products; today, it’s the Mexicans. Same story, same conclusion, apparently. (Updated October, 2005) |
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Would you want to work in an industry that requires specialized skills; demands long, sometimes, dangerous hours; requires you to work at remote, often deserted locations, and that suffers from uncertain effects from business cycles? Well, mining companies have jobs for you! (Updated October, 2005) |
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Costco is the largest warehouse retailer, with almost 50% of the market, compared with Sam's Club 40% market share. Costco's profit last year was $882 million, up 22% from the previous year. How does it do it and keep it going? (Updated September, 2005) |
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Under pressure to reduce transportation costs, shipping companies are scanning the globe looking for low-ranked seamen - known as "ratings" - who are willing to work for lower pay and under more extreme conditions than others. Their search is taking them to Southeast Asia and away from Europe, where they had been looking previously. (Updated November, 2004) |
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The general public
holds a perception that public school teachers aren't as smart as they used
to be. Recent research both refutes and supports that perception. (Updated May, 2004) |
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The union representing
Delta Airlines' pilots have offered to cut pilots' wages by 9%, as well
as forgo a 4.5% pay raise for pilots next year, in an attempt to stem company
losses. (Updated February, 2004) |
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Increased U.S. border
security has created an unusual problem - migrant workers who entered the
country illegally are finding that they can't leave, and so are staying.
This increase is taxing the public sector programs in communities in which
illegal immigrants live. (Updated October 17, 2003) |
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The new Transportation
Security Administration is hiring thousands of workers for airport and airline
security. However, it is causing widespread attrition at other agencies,
necessitating pay increases. (Updated October 10, 2002) |
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In the Tampa Bay area,
the market for skilled tradespeople is strong. Three or four years after
high school, workers can earn as much as a college graduate. Some therefore
question the value of college. (Updated October 10, 2002) |
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In the UK, children
are less willing to do household chores voluntarily than a generation ago.
They want financial remuneration. Pay varies by task and by gender. (Updated June 15, 2002) |
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Doctors are deserting
traditional hospitals for doctor-owned specialty centers where the schedule
is more efficient, payments to doctors are higher, and a share of the profit
can be earned. (Updated May 6, 2002) |
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Hiring freezes are thawing
as optimism about an economic recovery increases. However, firms are being
very judicious about the number and types of hires they are making. (Updated May 1, 2002) |
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Germany's Chancellor
Schroder's re-election campaign is being hindered by rising unemployment.
Hence he proposes to subsidize lower-paid workers' contributions to insurance
and health funds in order to induce more to work. (Updated April 1, 2002) |
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Vacancies in social
work positions in Britain are high. Attempts to remedy the situation include
promotional campaigns, paying people to train to be social workers, and
recruiting from Spain's social work schools. (Updated January 15, 2002) |
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Immigrants are sometimes said to be taking jobs away from Americans, but they are fuelling economic growth, make a net contribution to the government, and keep prices lower. (UpdatedDecember 1, 2001) |
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In the U.K. in 1997,
the Labour Government introduced tuition fees for university students and
eliminated maintenance grants for living expenses. In the face of parental
anger, it is now contemplating a supplementary tax on graduates with higher
incomes. (Updated November 1, 2001) |
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In the 1990s, the average
work year of an American worker grew, surpassing that of Japanese workers.
Reasons include the American culture, mothers returning to work more quickly,
increasing proportions of professional and multiple job-holders, and the
U.S. economic boom. (Updated October 1, 2001) |
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The economic slowdown
is increasing the teenage unemployment rate. Job searching is more protracted
and intense. Pay, hours, and conditions are often worse than a year ago. (Updated September 1, 2001) |
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In Amsterdam, a new
law regulates brothels and the citizenship and tax liability of prostitutes.
The result has been that brothels are less attractive, while many prostitutes
have had to give up their profession. (Updated September 1, 2001) |
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Pilots at Comair, the
Delta regional airline, have voted to end their strike. The new contract
gives them improved salaries and benefits. However, it will take some time
to restore service to previous levels. (Updated September 1, 2001) |
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Tiger Woods commands
very high appearance fees. He also wins a lot of prize money. However, his
success is increasing what his rivals can earn. Tempting appearance fees
elsewhere have led the PGA Tour to control how many top golfers can miss
an event. (Updated July 1, 2001) |
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The Teamster union election
occurs later in 2001. James P. Hoffa, Jr., is favored to win on his promises
of union growth, political independence and financial stability. However,
he is fighting an uphill battle against the forces that have reduced the
size of the union over the past decade. (Updated July 1, 2001) |
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European immigration
policy is allowing more immigration by skilled workers to remedy shortages.
However, it has been criticized because it does not recognize the benefits
of greater unskilled worker immigration. (Updated May 1, 2001) |
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In the UK, there is
shortage of teachers, especially in London and in math and languages. Teacher
pay has been increased, which is expected to induce more graduates to teach.
However, it is argued that working conditions still need improvement. (Updated May 1, 2001) |
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In
the past, CEOs would step down and take life more slowly. Nowadays, many
are becoming CEOs in other companies, working nearly as hard (or harder
in some cases). (Updated April 1, 2001) |
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Older workers are being
discouraged from retiring. Part-time work and telecommuting, and benefits
for part-time work, are being offered to induce longer work lives. In return,
employers get loyal, well-connected, and high quality workers. (Updated February 1, 2001) |
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Decreased financing
for online firms is causing layoffs and diminished pay and stock option
prospects. Employees are considering unionizing. (Updated January 1, 2001) |
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The Immigration and
Naturalization Service is becoming more lenient in the wake of a change
in attitudes toward immigrants in society. It is awarding more visas and
green cards, and is raiding workplaces less often. The main cause appears
to be the worker shortage in the growing economy. (Updated January 1, 2001) |
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There is a debate over
whether more H-1B visas should be issued. One side says that it is vital
in order to overcome a high-tech labor shortage. The other side states that
high tech employers are simply replacing American workers with cheap foreign
labor. (Updated November 1, 2000) |
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Older workers are increasingly
choosing to stay in the labor force and postpone retirement. Among baby
boomers, one study found that 80 percent expect to work during retirement:
35 percent for interest/enjoyment; 23 percent primarily for income; 17 percent
to start a business; and 5 percent to try a different field of work. (Updated October 1, 2000) |
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While the ad business
is booming largely due to dot-com spending, talented staffers are spurning
ad agencies in favor of dot-com employment. A strike by actors is also hampering
the production of commercials. (Updated July 1, 2000) |
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Applications to the
New York City Police Department have been falling due to low starting salaries,
better opportunities in the private sector, and poor community relations.
Now police recruiters from LA are tempting residents with higher pay, a
better climate, and lower educational requirements. (Updated July 1, 2000) |
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Nursing school enrollments
continue to decline, causing a shortage of nurses and endangering patient
care. One solution would be to make nursing more attractive. However, a
recruitment program in the 1980s did this and created an oversupply of nurses. (Updated May 1, 2000) |
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Boeing engineering workers
have returned to work after a six-week strike that crippled the delivery
of airplanes. The workers achieved most of their bargaining objectives:
they will retain their health-care benefits, and receive raises and bonuses. (Updated May 1, 2000) |
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Teachers' pay is lagging
behind that of other college-educated professionals. The gap is increasing.
Teaching is less attractive. The result is that school districts are hiring
teachers with inadequate qualifications. (Updated March 1, 2000) |
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After decades of decline,
union membership rose in 1999. It was due to unions putting more resources
into organizing workers, and unionized employers expanding their workforces. (Updated March 1, 2000) |
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The Army is experiencing
a shortfall in recruits due to the tight labor market in which private sector
employers are giving similar benefits. The Army is changing its ad agency
and plans to offer high-school equivalency programs to recruit more high-school
graduates. (Updated February 1, 2000) |
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The economic boom of
the 1990s is improving real incomes. Poverty is lower. However, the gains
are small, and often at the cost of more work hours. The rich and more educated
have gained disproportionately. (Updated December 1, 1999) |
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There is a debate over
whether there is a teacher shortage. One side argues that teachers exceed
vacancies in most areas, while the other states that over the coming decade
the growth in enrollments and teacher retirements will cause a shortage,
especially in some subjects. (Updated November 1, 1999) |
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The Army and Air Force
are failing to meet their recruitment targets this year. Young people would
rather go to college and start a civilian career because the military does
not pay well and is associated with discipline, boot camp, danger, and mobility.
(Updated August 1, 1999) |
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Economists are being
laid off by manufacturing and finance firms due to mergers, inaccuracies
in predictions, and a realization that much information is available on
the internet. However, consulting opportunities are increasing. (Updated July 1, 1999) |
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A Minneapolis-St.Paul
school district is having recruitment and retention problems. Its starting
salaries are low due to teachers' contract and inadequate governmental aid
and a poor property tax base. Solutions include more aid, higher taxes or
larger classes. (Updated June 1, 1999) |
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There is a shortage
of specialized nurses. The population is aging and needing more health care,
but nurses are also aging and retiring. Hospitals are therefore raising
wages and benefits, and offering bounties for referrals and bonuses to new
employees. (Updated May 1, 1999) |
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MIT has admitted that
there is evidence of discrimination against women in its School of Science.
Women are hired and promoted less and receive fewer resources. The American
Association of University Professors states that, nationally, the pay gap
between male and female faculty has widened. (Updated May 1, 1999) |
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The biggest union victory
in over 50 years-the organizing of 74,000 home care workers in Los Angeles
County-has precipitated predictions of a labor revival. The campaign reflected
a new focus on low-paid service workers. Future wins will be difficult due
to employer resistance, however. (Updated April 1, 1999) |
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Ford's purchase of
the Volvo car division is causing Swedish workers to be anxious about whether
they will lose their health and fitness facilities. They argue that the
centers help reduce absenteeism and compensate for lower pay and higher
taxes compared to the U.S. (Updated April 1, 1999) |
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FedEx pilots have suspended
their strike threat. Other employees had been critical of them. Management
had leased replacement planes and trucks. It planned to lay off striking
pilots. Some pilots were expected to cross the picket line. Now the best
time for a strike is disappearing. (Updated January 1, 1999) |
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In the Tampa Bay region,
wages appear to be low. However, this masks significant differences between
and within occupations. The average low pay could reflect the non-wage benefits
of the area, the low cost of living, and the lack of union militancy. (Updated December 1, 1998) |
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The United Auto Workers
is losing members and dues because of outsourcing, production abroad, new
technology, and retirements. Similar trends are evident in other unions.
Unions are recruiting vigorously to stem the flow, encouraged by key victories
in the UPS and American Airlines disputes. (Updated October 15, 1998) |
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Northwest Airlines pilots
are on strike because they feel that the company's offer is inadequate compensation
for the pay cuts agreed to in 1993 when the airline was in financial difficulties.
In spite of record profits, Northwest says that it cannot afford the increases,
particularly because it knows that other groups will want similar raises. (Updated October 15, 1998) |
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Although retirees
and discouraged workers are joining the labor force, increases in individuals'
hours of work are more significant sources of growth in the supply of labor.
This is due to attempts to maintain real incomes in the face of declining
real hourly wage rates. (Updated August 18, 1998) |
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The relative pay of
women has improved over the past year, reflecting greater increases in pay.
The causes are reputed to be the booming economy, hikes in the minimum wage,
and performance-based pay systems. (Updated August 18, 1998) |
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