Optimal asset allocation strategies of defined-contribution pension plans for members whose terminal utility is a power function of wealth-to-wage ratio is investigated in this paper. The portfolio problem is to maximize the expected terminal utility in the presence of three risk sources, interest risk, asset risk and wage risk. A closed form solution is found for the asset allocation problem a...

One of the oldest views on wage determination holds that wage differences reflect compensation for hedonic aspects of jobs such as the risk of injuries and occupational diseases. This paper studies the importance of such compensating wage differentials using longitudinal information on workers and firms. This data allows us to disentangle the wage and risk components that are attached to the wo...

The purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. More specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. The results indicate that this theory provides a good description of the spatial structure of w...

We select a Korean case with ample subcontracting practices and a rigid wage system. Workplaces with subcontract transactions would have reason to impute the additional wage incremental costs associated with the seniority-based wage system (Hobong in Korea) to subcontractors. Our empirical results identify the cost-transferring mechanism under which the cost of wage rigidity for contractors is ...

The Effects of Living Wage Laws: Evidence from Failed and Derailed Living Wage Campaigns Living wage campaigns have succeeded in about 100 jurisdictions in the United States but have also been unsuccessful in numerous cities. These unsuccessful campaigns provide a better control group or counterfactual for estimating the effects of living wage laws than the broader set of all cities without a l...

The search for wage data can be daunting. Data are available for different job characteristics, such as occupation, industry, or geographic area; by demographics of the wage earner, such as race, sex, education, or age; and in a variety of forms, such as hourly wages, annual salaries, total employer payrolls, gross pay, or net pay. Beyond these variations, users of wage data may ask how wage is...

Performance pay is of growing importance to the wage structure as it applies to a rising share of employees. At the same time wage dispersion is growing continuously. This leads to the question of how the growing use of performance pay schemes is related to the increase in wage inequality? German SOEP data for the years 1984 to 2009 confirm the large increase in the application of performance p...

We analyze the following questions under imperfect labour markets. How does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit sharing before wage formation or decide for profit sharing after wage formation? What is the relationship between outsourcing, profit sharing, and equilibrium unemployment? We find that in both scenario...

Wage Gaps Large and Small The law of one wage does not strictly hold, nor should it be expected to hold, in contemporary labor markets. The law of one wage, however, provides a surprisingly good first approximation of the structure of U.S. wages. This generalization is drawn from research on a diverse set of topics: the Mincerian wage equation and earnings imputation, union wage differentials, ...

This paper analyses wage dynamics at individual level using the European Community Household Panel data. We compare yearly wage changes of full-time employees staying in the same ...rm for twelve European countries during the 1994-96 time-period. For all the European countries we ...nd evidence of nominal wage rigidity. The percentage of employees receiving no wage changes is di¤erent across co...