December 05/January 06 (No. 11)
Editor: Terence K. Huwe
Contributors: Elizabeth del Rocío Camacho, Janice Kimball

IIR News & Events
Carol Zabin Wins the LERA Susan C. Eaton Award
IIR Faculty Seminar: Alex Mas, December 5, 2005
New IIR Working Papers

IIR Unit News
Labor Center News
California Public Employee Relations News
Center for the Study of Child Care Employment News
Institute of Industrial Relations Library: Services during Renovation
Labor Project for Working Families

Campus Events
Economics Department Seminars
Haas School of Business: OBIR Seminar
Sociology Department Colloquium Series


Carol Zabin Wins the LERA Susan C. Eaton Award

Carol Zabin was selected as a co-winner for the LERA Susan C. Eaton Scholar-Practitioner Research Project Award for 2005. The Center for Labor Research and Education will receive a monetary award to support her research and a plaque that will be presented to her at the LERA annual meeting in Boston this January. Her research will document new labor and consumer strategies to create "better jobs and better care" through unionization in home and community-based long-term care, human services, and early childhood education. Through case studies, interviews and literature review, her analysis will focus on the interrelationship between unionization strategies, the industry structure and political contexts in which the campaigns occur, and the outcomes for workers and consumers.

Congratulations Carol!

IIR Faculty Seminar: December 5, 2005

Alexandre Mas
Professor, Economic Analysis and Policy Group, Haas School of Business


Noon, IIR Directors Lounge
2521 Channing Way
RSVP: Myra Armstrong, 643-3012,

New IIR Working Papers

Cynthia Bansak and Steven Raphael
"The State Health Insurance Program and Job Mobility: Identifying Job Lock among Working Parents in Near-Poor Households.”

We use the introduction of the State Children’s Health Insurance Program (SCHIP) to assess whether the job mobility and wages of near-poor parents are suppressed through job lock. We exploit differential take up rates among eligible households and stratify adults in these household in to quasi-experimental treatment and control groups. Using data from the 1996 and 2001 Survey of Income and Program Participation (SIPP), we first identify working adults whose children meet the SCHIP eligibility criteria. We then separate these workers into two groups: those with employed spouses who have employer provided coverage in their own names and those who do not. For the former group, the introduction of SCHIP is unlikely to relieve job lock since they already had a viable alternative source of coverage. For the latter group, however, SCHIP provides an alternative source of coverage where one previously did not exist. We find a large significant increase in public coverage rates among the children of adults who do not have independently insured spouses (on the order of 10 percentage points). There is no such increase among adults with insured spouses. Corresponding to these differential take up rates are differences in the change in job mobility. Among workers without insured spouses, we observe a 6 percent point increase in the likelihood that the worker separates from their current employer within one year after SCHIP is implemented. We see no comparable change in mobility among those with insured spouses. This relative pattern survives regression adjustment for observable demographic characteristics, the household’s position in the income distribution and a host of other controls. Finally, we find no effect of the increased mobility on relative wages.

Arindrajit Dube, Barry Eidlin, and Bill Lester
"Impact of Wal-Mart Growth on Earnings throughout the Retail Sector in Urban and Rural Counties"

Using a database of Wal-Mart store openings (from Emek Basker), and the county level Quarterly Census of Employment and Wages, we estimate the effect of Wal-Mart on earnings of retail workers during the 1990’s economic expansion (1992-2000). We exploit the pattern of Wal-Mart expansion (expanding outward from Arkansas over time) to predict Wal-Mart store openings, allowing us to control for endogeneity using both instrumental variable and control function approaches. We find that in urban counties, a Wal-Mart store opening led to a 0.5% to 0.8% reduction in average earnings of workers in the general merchandise sector, and a 0.8% to 0.9% reduction in average earnings of workers in the grocery sector. This translated into a combined 1.3% reduction in total earnings (wage bill) of workers in these sectors. Endogeneity causes the OLS estimates to be biased downwards in magnitude, primarily from an omitted variables bias. No earnings impact was found for rest of the retail sectors or for restaurants (the latter being an auxiliary test of our identification strategy). In contrast, in non-MSA (i.e., rural) counties, a Wal-Mart store opening was associated with an increase in earnings of general merchandise workers, and a decrease in earnings of grocery workers, but no significant change in the wage bill. We estimate that in 2000, total earnings of retail workers nationwide was reduced by $4.7 billion due to Wal-Mart’s presence.

Marco Leonardi
"Firm Heterogeneity in Capital labor Ratios and Wage Inequality"

This paper documents the increasing dispersion of capital-labor ratios across firms in the US and provides some empirical evidence of a positive correlation at the two-digit industry level between the dispersion of capital-labor ratios across firms and residual wage inequality. To explain this empirical fact, the paper adopts a search model where firms differ in their optimal capital investment. The exogenous decline in the relative price of equipment capital makes the distributions of capital-labor ratios more dispersed. In a frictional labor market, this force generates wage dispersion among identical workers. OLS estimates of the relationship between capital dispersion and the relative price of equipment capital support the main hypothesis of the model.

Dylan Riley
"Democratization Within Democracy: Authoritarianism and Passive Democratization in Spain and Italy.”

What is the connection between civic associationism and political participation? Recent work in the neo-Tocquevillian traditions suggest that civic associationism encourages political participation. In contrast more conservative readings of Tocqueville, and Gramsci's analysis of civil society, suggest that civic associations tend to undermine, rather than promote political participation. Indeed this is one of the major reasons that Tocqueville saw civic associations as important guarantors of liberty. We investigate these competing arguments by analyzing the connection between authoritarian regime type and political participation in Italy and Spain. The Italian fascist regime sought to eliminate civic associations of all types, incorporating them systematically into the party. The Franco regime, in contrast, had no such ambitions, and left a relationship between civic associationism and political participation causally, because the "treatment" is prior to the outcome, and as we will show is connectted to it through historically specifiable mechanisms. We find, quite paradoxically from the perspective of the neo-Tocquevillians, that Italian facism tended to promote political participation by establishing a pattern of political behavior in which parties subordinated and instrumentalized civic associations. Spanish authoritarianism, with its more laissez faire orientation to civil society, left a legacy of deep political apathy. Paradoxically, from the perspective of the neo-Tocquevillians, the more 'totalitarian' fascist regime, produced a more 'participatory' liberal democracy, than the 'less totalitarian' Franco dictatorship.

IIR Unit News

Labor Center News

Labor Center hosts Chinese Labor Union Leaders for Day of Discussion
On Monday, November 21, the Labor Center sponsored a day of roundtable discussions with four leaders of the All China Federation of Trade Unions, who were visiting California as guests of SEIU. Topics included job quality, labor standards, and labor campaigns – using Wal-Mart as a frame.


California Lead Organizers Institute
The Labor Center, in partnership with the Center for Third World Organizing, will hold its second round of this five-day training with two follow-up sessions designed for lead organizers. The 2006 Institute is intended for organizers who work with the Latino community on Latino healthcare issues, and will be conducted in Spanish and English. The deadline for applications is February 10. It will be held March 13-17, 2006, at the Ben Lomond Center near Santa Cruz. For information please contact Raahi Reddy at 510-642-1851 or, or visit our website: Funding for this Institute is provided by The California Wellness Foundation.

C. L. Dellums African American Union Leadership School
IT’S TIME TO REGISTER. The school will consist of eight Saturday sessions beginning January 28 and ending May 6, 2006. There will also be three follow-up sessions to assist participants and to evaluate the usefulness of the program. For information please contact Steven Pitts at 510-643-6815 or, or visit our website:

Labor Summer
The Labor Summer program places UC students in paid summer internships with Bay Area unions and community-based organizations. Union/CBO applications to host an intern are due February 3, 2006; internship applications are due March 3, 2006. For information or to apply, contact Alicia Criado at or 510-642-9316, or visit our website:

Media Skills Workshop
Our previously postponed Media Skills Workshops is now scheduled for Thursday, January 19 and Friday, January 20, 2006, at the IIR building, 2521 Channing Way. For information or to register, contact Alicia Criado at or 510-642-9316, or visit our website:

California Public Employee Relations News

CPER No. 175 (December 2005) just went to press. In the first main article, attorney Greg Dannis draws on his many years of experience at public school negotiating tables to write about the benefit of identifying and using core values during the collective bargaining process. The second article is CPER Editor Carol Vendrillo's informative interview with the current chairperson of the California Public Employment Relations Board, John Duncan. He discusses how PERB is handling a smaller budget, larger responsibilities, and new technology. Other news in this issue includes teachers' triumphs at the polls, settlement of the lengthy Santa Cruz bus strike, and how equity increases are edging out merit pay plans at California State University.

In the next issue of the Labor and Employment Law Journal of the State Bar is a review of the latest edition of the California Public Sector Labor Relations (published by NexusLexus/Matthew Bender), which is edited annually by Carol Vendrillo. In January, Carol will participate in a program on Alternative Dispute Resolution at U.C.’s Hastings College of the Law. The program is sponsored by the Bar Association of California. Carol also will be attending the Labor Arbitration Institute in San Francisco.

Center for the Study of Child Care Employment

The Center for the Study of Child Care Employment has received renewed support for 2006 from the David and Lucile Packard Foundation to continue its "Next Steps Project." The project is currently focused on advising state and local policy makers on workforce development issues related to the proposed statewide Preschool For All system for California's four-year-old children. The Center has also received a grant from the Foundation for Child Development to write a policy analysis on declining teacher qualifications and wage stagnation in the early education field over the past 25 years.

Institute of Industrial Relations Library News

Web Statistics: Monthly Reports Coming Soon

The administrators have made a special exception so that IIR may receive Web traffic statistics on a monthly basis. Socrates is not primarily a Web server, but the fact the IIR’s Web is the top destination on the server (which includes many other Organized Research Units) makes our situation extraordinary. Terry will prepare summaries for unit heads. NOTE: the reports will not show the addresses of individuals who visit our Web sites—just the aggregate traffic going to programs, directories and Web pages.

Collection News

The IIR Library collection has now been moved. Renovation on the Library space will begin after the new year. In the mean time, our services are ongoing. Here's how to take advantage of them.

Institute affiliates can still borrow books with open loan period, but we may need to recall them, as always. To obtain materials, please contact either Janice or me and we will retrieve the materials for you.

Janice: 642-8181,
Terry: 643-7061,

SEMESTER LOAN DUE DATE: Our fall semester loan period ends DECEMBER 15, 2005. We always appreciate it if IIR affiliates return books by that date too, if they are done using them.

Reference service is ongoing, and to obtain our help, just contact us. Service requests have been constant and frequent, both from campus and from our community. This indicates that we are alive, well, widely known to be offering service, and that are patrons are aware of this. When the Bancroft Library moved, it ceased all public operations for over 4 months, in comparison.

During the next few weeks, we'll launch a /remodel Web directory on the library Web, and keep you posted on our progress via email and eNews.

Labor Project for Working Families News

New Publication Available in Winter 2006

MAKING IT WORK BETTER, a union work/family curriculum, provides union instructors, facilitators and discussion leaders with ideas on how to:

  • Educate union members and leaders on work-family issues;
  • Advance these issues on the job; and,
  • Advocate for work-family issues in the community, on the legislative front and in the public arena

The 3 1/2 hour curriculum contains short modules that can be incorporated into existing union trainings or used in its entirety to train bargaining committees, stewards or rank and file members.

MAKING IT WORK BETTER is designed as a step by step guide and contains everything needed including group exercises, a power point presentation, background material and handouts. It can be customized by industry, union, size of the group or leadership level of the participants.

Available Winter 2006 at or (510) 643-7088.

Staff News: Twins!
Katya and Frida were born on October 13, 2005 to Labor Project staff member, Jenya Cassidy. Twins and mom are doing well and Jenya is taking her paid family leave!


Economics Department Seminars

Economics 218, Psychology and Economic History Seminar
608-7 Evans Hall

December 6, 2005
Sticking with your vote: cognitive dissonance and voting
Ebonya Washington, Yale University

Economics 221, Industrial Organizational Seminar
608-7 Evans Hall

December 6, 2005
Steven Tadelis, Haas School of Business, UC Berkeley

December 5, 2005
Measuring Leisure: Evidence from Five Decades of Time Use Surveys
Erik Hurst, University of Chicago

December 8, 2005
Jonathan Parker, Princeton University

Economics 242. Econometrics Seminar
608-7 Evans Hall

Economics 251, Labor Economics Seminar
608-7 Evans Hall

December 8, 2005
Layoffs, Lemons, Race and Gender
Luojia Hu, Northwestern University

December 5, 2005
Patience Capital, Occupational Choice, and the Spirit of Capitalism
Matthias Doepke, UCLA

December 5, 2005
Steve Redding, Princeton University

Haas School of Business

OBIR 259
Organizational Behavior and Industrial Relations Seminar
135 Cheit Hall, 4-5:30pm

December 7, 2005
Joanne Martin, Graduate School of Business, Stanford University

Sociology Department Colloquium Series, Fall 2005

Sociology Colloquium Series
Blumer Room
402 Barrows Hall
Thursdays, 4:00 - 5:30 pm
Mondays 2:00 - 3:30pm (occasionally)

December 8, 2005
Emergence: Spontaneous Order in Social Networks
Brian Uzzi, Northwestern University, Kellogg School of Business
(Co-Sponsored by the Haas School of Business)