NOVEL THINKING

Figure 1 shows education’s impact on the re-employment market and the potential of wage adjustment. A person with a higher level of education may find work a week or two quicker than someone with low levels of education (see Figure 2). These individuals will find re-entry more difficult in terms of wage and timing. van de Klundert, Th. Source: Author’s calculations, * Significant at the 1 percent level When the economy is strong, only the weakest elements of the workforce will disconnect and enter the re-employment market. The variable coefficients for education levels are all significant and positive in the wage difference model. (1992, February). In the weeks of benefits model, the coefficient for the age of re-employment is positive. Equal Pay and Compensation Discrimination - Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility. The profile includes a Standardized Occupational Code (SOC) for the occupation from which the applicant is separated. (2015, August). Additionally, as the wage data are in nominal terms, the yearly binaries should account for any inflationary influence. The coefficient for the squared variable is negative. This study helps to identify the influences that achieve these outcomes. Individuals without wage matches are excluded from the study since the study is focused on reintegration. The model attempts to determine which factors impact the relative wage of the person emerging from unemployment and the duration of unemployment. The empirical results of historically linked unemployment and wage data confirm the importance of education and its immediate positive impact on wages in the re-employment market. 1-866-4-USA-DOL Permission to use the material is encouraged, but please email us at ibrc@iu.edu to indicate you will be using the material and in what other publications. While unemployment has a negative influence on wages, these effects can be somewhat mitigated with higher levels of education. The risk of getting unemployed can vary with respect to the level of While most are significant, there is little variation in magnitude. After age 45, diminishing returns set in and the wage of a person emerging from claims decreases. The link between education and the ability of an individual to navigate the re-employment market is both significant and pronounced. A binary gender variable was used with positive being an indication of male. It is also argued from a dynamic perspective that wage inequality should decrease with increasing levels of education (Tilak, 1989). Table data: Real GDP by state (millions of chained 2009 dollars). In the longer term, the increased supply of highly educated people puts pressure on wages of the complex jobs or pushes the highly educated into jobs of lower wages with fewer skill requirements. All values shown are significant at the 1 percent level. The more experienced a worker, the greater the potential for enhanced skills and desirability. 1, The Indiana Business Review is a publication of the Indiana Business Research Center at Indiana University's Kelley School of Business. ** Second and third quarter average before unemployment The explanatory variables are a collection of other available variables in the matched data set. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} Others disagree with the notion of long-term dynamic wage convergence and decreased wage disparity. * Significant at the 1 percent level A person will also find the position on average about one week faster with a bachelor’s degree compared to a high school degree. It is, therefore, essential to establish observations with clean wage records before and after the UI claim. The data provide for three binary options: African-American, other and white. This analysis examines the short-term individual impact of education in re-employment wages and does not address the longer term impact of macro dynamics and the potential for long-term wage disparity convergence. The lower the salary, the less time it took to find and accept a position. Records outside of this range were dropped from evaluation, as they are either outside the scope of the study or likely the result of invalid data. The variable coefficient is negative in the wage difference model and positive in the weeks of benefit model. Acemoglu, D. (2002, March). This view is summarized and empirically shown in data prior to 1970 between white- and blue-collar employees by Goldin and Margo (1992). Source: Author’s calculations. Race binary variables are created, but complete separation is limited with data. Inside This Issue Their perceived weakness is a signal to the labor market about their potentially being lower quality. The link is built on the commonly accepted idea of imperfect substitution between the work and the availability of skills in the labor market. The labor market maintains a positive wage bias in favor of skills and increased human capital. As more people pursue these positions and educational levels increase, the supply of higher skilled workers increase. Source: Author’s calculations. [CDATA[/* >