November/December 2010 (No. 46)

Editor: Terence K. Huwe
Contributors: Marcy Whitebook, Stefanie Kalmin, Janice Kimball, Jenifer MacGillvary, Netsy Firestein, Dick Walker


Especially Recommended
IRLE Colloquium Series:
Monday, November 29 –Speaker: Nicole Johnson, Professor, Haas School of Business
Title: To Be Announced

IRLE News & Events
Fall Colloquium Series: November Events
Recent Working Papers
Industrial Relations: A Journal on Economy and Society, Volume 50, No. 1
New Deal Conference Held at IRLE

IRLE Program News
The Labor Center
California Public Employee Relations
Center for the Study of Child Care Employment
Center for Wage and Employment Dynamics
Institute for Research on Labor and Employment Library
The Labor Project for Working Families

Campus Events
Economics Department




IRLE Fall Colloquium Series

The following colloquia are scheduled during the month of November. Further information, papers and speaker information will appear on the IRLE Web as we receive them.

Time and Location:
12 P.M. –1 P.M.
Large Conference Room –2521 Channing Way
Refreshments ~ R.S.V.P. Myra Armstrong,

Additional information:

Monday, November 8, 2010
Ken Jacobs, Chair, Center for Labor, Research and Education
Changes in Job-based Coverage under the New Federal Health Law: A Preliminary Look Using a Micro-simulation Model of California Employers

Monday, November 15
Joanna Robinson, Visiting Scholar, Sociology, University of British Columbia, Canada
Title: Mobilizing Against Water Privatization: Labor-Environmental Coalitions in the United States and Canada

Monday, November 29
Nicole Johnson, Professor, Haas School of Business
Title: To Be Announced


Recent Working Papers

The following papers are available in the eScholarship Repository and on the IRLE at the follow locations:

Brown, Clair, Linden, Greg: Managing Knowledge Workers in Global Value Chains, 2010

Card, David, Mas, Alexandre, Moretti, Enrico, Saez, Emmanuel: Inequality at Work: The Effect of Peer Salaries on Job Satisfaction, 2010

Dube, Arindrajit, Lester, T. William, Reich, Michael: Do Frictions Matter in the Labor Market? Accessions, Separations, and Minimum Wage Effects, 2010

Evans, Peter: Is it Labor’s Turn to Globalize? Twenty-first Century Opportunities and Strategic Responses, 2010

Lester, Gillian: The Aging Workforce and Paid Time Off, 2010

Lester, Gillian: Beyond Collective Bargaining: Modern Unions as Social Solidarity, 2010


Industrial Relations: A Journal of Economy and Society: Volume 50, No. 1

Full text is available via Wiley Online Library:


High Performance Work Practices and Employee Voice: A Comparison of Japanese and Korean Workers
Kiu-Sik Bae, Hiroyuki Chuma, Takao Kato, Dong-Bae Kim, and Isao Ohashi

Using a unique new cross-national survey of Japanese and Korean workers, we report the first systematic evidence on the effects on employee voice of High Performance Work Practices (HPWPs) from the two economies which are noted for the wide use of HPWPs. We find for both nations that: (i) workers in firms with HPWPs aimed at creating opportunities for employees to get involved (such as shopfloor committees and small group activities) are indeed more likely to have stronger senses of influence and voice on shopfloor decision making than other workers; (ii) workers whose pay is tied to firm performance are more likely to have a stake in firm performance and hence demand such influence and voice; and (iii) consequently workers in firms with HPWPs are more likely to make frequent suggestions for productivity increase and quality improvement. As such, this paper contributes to a small yet growing new empirical literature which tries to understand the actual process and mechanism through which HPWPs lead to better enterprise performance.


Understanding organization-level differences in interpersonal deviance: The role of human resource system characteristics
Jeffery B. Arthur


Current research on determinants of interpersonal deviant behaviors in organizations including incivility, bullying, and sexual harassment has focused primarily on the effects of individual-level characteristics while neglecting inter-organizational differences in human resource systems that shape the context for employee interactions at work. Using data from a nationally representative survey of over 300 U.S. work establishments, I find empirical support for theory-based predictions that organizations with HR systems characterized by greater use of internal labor markets and less team autonomy are associated with lower frequencies of reported interpersonal deviance behaviors than those that rely on external labor markets and self-managed teams.


The impact of minimum wages on unemployment duration: estimating the effects using the displaced worker survey
Roberto Pedace and Stephanie Rohn

This paper examines the impact of minimum wages on unemployment duration. Our estimates suggest that higher minimum wages are associated with shorter unemployment duration for older males and those with at least a high school diploma, but longer unemployment spells for male high school dropouts and females who are older and in lower-skilled occupations. The results are consistent with other studies in generating concerns about the distributional impact of minimum wages.


Transitions Out of Casual Employment: The Australian Experience
Hielke buddelmeyer and Mark Wooden

This paper uses longitudinal data to examine the extent to which casual employees, who account for almost 25% of all Australian employees, are able to access non-casual jobs in the future, and to contrast their experiences with that of other labor market participants. A dynamic mixed multinomial logit model of labor market states is estimated which reveals high rates of mobility from casual employment into non-casual employment. Among men, casual employees are found to be far more likely to make the transition into non-casual employment than otherwise comparable unemployed job seekers. For women, however, this is not the case.


The Impact of Union Corruption on Union Membership
Christopher K. Coombs

This paper examines the relationship between union corruption actions and union membership. State-level data from the Office of Labor Management Standards, and other sources, are utilized over two study periods (1974-2000 and 2001–2008) to test three hypotheses, including the union corruption hypothesis, as possible explanations for the decline in union membership in the United States over time. Although our initial findings suggest a negative relationship exists between union corruption and membership, after removing the possibility of simultaneous equations bias, we find that changes in corruption do not influence changes in union membership in our sample.


Does having a dysfunctional personality hurt your career? Axis ii personality disorders and labor market outcomes
Susan l. Ettner, Johanna Catherine Maclean, and Michael T. French

Despite recent interest in how psychiatric disorders affect work outcomes, little is known about the role of personality disorders (PDs), which are poorly understood yet prevalent (15%) and impairing. We used nationally representative data for 12,457 men and 16,061 women to examine associations of PDs with any employment, full-time employment, chronic unemployment, being fired or laid off, and having trouble with a boss or co-worker. Antisocial, paranoid, and obsessive-compulsive PDs demonstrated the broadest patterns of associations with adverse outcomes. Findings suggest that PDs may have implications for the productivity of co-workers as well as that of the disordered employees themselves.


Learning: What and How? An Empirical Study of Adjustments in Workplace Organization Structure
Avner Ben-Ner and Stéphanie Lluis

We seek to understand how firms learn about what adjustments they need to make in their organization structure at the workplace level. We define four organizational systems: traditional (the simplest system), high-performance (the most complex system), decision-making oriented, and financial-incentives oriented (intermediate complexity). We analyze (1) learning-by-doing on adoption of more or less complex systems, (2) the performance-experience learning curves associated with different systems, (3) the match between perceived organizational capabilities and the choice of systems, the influence of (4) other firms’ systems and performance on a firm’s adjustment decisions, and of (5) a firm’s location on its decisions.


Job Satisfaction and Promotions
Vasilios D. Kosteas


This paper estimates the impact of promotions and promotion expectations on job satisfaction using the 1996-2006 waves of the NLSY79 dataset. Having received a promotion in the past two years leads to increased job satisfaction, even while controlling for the worker’s current wage, wage rank within her peer group and wage growth. Workers who believe a promotion is possible in the next two years also report higher job satisfaction. Additionally, past promotions have a lingering, but fading impact on job satisfaction.


New Deal Conference Held at IRLE

On October 29, IRLE was the site of a lively conference that focused on the New Deal years of the Roosevelt administration. Presenters explored commonalities between the New Deal era and the ferment of contemporary politics. A full description and press release describing the event will be available on the IRLE Home Page, beginning on Tuesday, November 17, with links to the conference Web site:




The Labor Center

Upcoming Workshops

What EVERY Union Needs to Know about the New Federal Health Law
Fresno, November 18, 2010
This workshop is suitable for union negotiators, leaders and Taft-Hartley trustees. Topics include: detailing the new health care law and regulations, new health plan standards, how grandfathered plans are defined, new employer responsibilities and opportunities, new subsidies and Medi-Cal expansion, state health policy updates, and what the law will mean for union negotiators.

Asilomar Forum will take place December 9-11, 2010.
Lead instructors:  Jim Philliou, Katie Quan and Karen Orlando.

California Labor Leadership Institute will take place January 6-9, 2011.
Lead instructors:  Katie Quan and Steven Pitts.


California Public Employee Relations

While CPER Journal is being revamped for a "green" online-only format, most of our attention is on pocket guides and the new seminar series.

We are just about to publish the third in a series of pocket guides to layoffs in the public school system: Pocket Guide to Layoff Rules Affecting Community College Faculty, written by attorneys Carmen Plaza de Jennings and Jayne Benz Chipman of Curiale Dellaverson. And we just updated the Pocket Guide to Unfair Practices. Also in progress is the ninth edition of Pocket Guide to the Educational Employment Relations Act, recently made current by CPER Editor Carol Vendrillo. We are about to begin editing a new guide to workers’ compensation, written by IRLE member Juliann Sum.

For several guides, we are planning to expand our audience nationwide and to the private sector.

CPER’s successful MCLE seminar, "Due Process Rules: Before, During, and After Termination," is being followed on December 3 by "Your Local Rules –Is It Time for a Makeover," organized by CPER Associate Editor Katherine Thomson. The seminar, being held at the Elihu Harris Building in Oakland, covers the state of local rules: what works, what’s missing, what the courts and PERB have decided; and negotiating changes in local rules, or making the current ones work better.
Speakers include:

  • Tim Yeung, Renne, Sloan, Holtzman, Sakai, LLP
  • Martin Gran, Employee Relations Director, City of San Francisco
  • Vin Harrington, Weinberg, Roger & Rosenfeld
  • Kate Hallward, Leonard Carder
  • Donn Ginoza, ALJ, Public Employment Relations Board
  • Rita Neal, County Counsel, San Luis Obispo
  • Ian Appleyard, Human Resources, City of Oakland
  • Larry Katz, Silver & Katz
  • Michael Patterson, International Brotherhood of Electrical Workers, Local 1245
  • Paul Roose, Supervisor, State Mediation and Conciliation Service
  • Annie Song-Hill, Presiding Mediator, State Mediation and Conciliation Service

To register, go to


SAVE THE DATE! Saturday, March 19, 2011.We will be honoring Director Carol Vendrillo with toasts and thanks as she retires from CPER, and celebrating her lengthy career serving the public sector.

Whether you know her from her early years at the National Treasury Employees Union, her years at the Public Employment Relations Board,her years at her roles as arbitrator, speaker, board member...OR as the life of the public sector matter which side of the table you’re on, we hope you’ll join us at the dinner table, at Hs Lordship’s at the Berkeley Marina. Details will follow, but mark your calendar now.


Center for the Study of Child Care Employment

CSCCE is pleased to announce the following new (or continued) projects. Our proposal to the W. Clement and Jessie V. Stone Foundation has been approved (contract pending) for year 3 of No Single Ingredient: The Complexity of Effective Early Childhood Teacher Preparation (NSI) by the W. Clement and Jessie V. Stone Foundation. NSI is an assessment of the quality and content of degree programs for early childhood professionals and workplace environments that support early childhood professionals to improve their classroom practice. CSCCE has received funding to work with the California Department of Education to improve their tracking of investments in the early care and education workforce; we will be assisting them in developing a standardized reporting form for their quality improvement projects.

Finally, CSCCE is pleased to announce that we have been selected (contract pending) by Los Angeles Universal Preschool (LAUP) to evaluate their Workforce Initiative (WFI), a multi-year to improve access and success in higher education for those pursuing early care and education careers. For more information on these and other projects, visit our new website at


Center on Wage and Employment Dynamics

Recent Sponsored Research

Funding Agency: Ford Foundation
Principal Investigator: Sylvia Allegretto
Title: Tipped Workers, Sub-minimum Wages and the Tip Credit Allowance

This research will study the effects of the sub-minimum wage received by tipped workers. The federal tipped wage is $2.13 per hour and has been so for 20 years. The rational for the federal sub-minimum wage is based on the concept of a ‘tip credit’ afforded to employers. At the federal level, the ‘tip credit’ allows an employer to pay workers an hourly wage of $2.13 as long as this base wage combined with additional tipped income equates to the actual minimum wage. Thus, the maximum federal tip credit is $5.12 which is the difference between the $2.13 tip wage and the federal minimum wage of $7.25. California is one of just seven states that do not allow for a sub-minimum wage; thus tipped workers are paid at least the regular state minimum wage of $8.00. Allegretto's will analyze tipped wages and the tip credit in terms of worker outcomes such as wages and poverty and firm outcomes such as whether negative employment effects are associated with higher tipped wages.

New Publications
Sylvia Allegretto had the lead article in the October 2010 edition of the Monthly Labor Review:

"The composition of the unemployed and long–term unemployed in tough labor markets"

CWED has also released to new policy briefs:

"The Severe Crisis of Jobs in the United States and California"

"The Truth about Public Employees in California: They are Neither Overpaid nor Overcompensated"

Presentations During September and October

Sylvia Allegretto:
"The Great Recession: Job Losses and Consequences." Presented to The Teamsters Fall Divisional Summit in Las Vegas, Nevada October 4, 2010

"Job Losses and Economic Consequences of the Great Recession"
IRLE Colloquium Series, September 27, 2010

December Presentation

Sylvia Allegretto:
"The 4th Generation of Minimum Wage Research"
Economic Analysis and Research Network (EARN) conference in Atlanta, Georgia on December 7, 2010.


Institute for Research on Labor and Employment Library

California Labor Federation Collection Sees Heavy Use During 2010 Elections

The IRLE Library's digital collection of the California Labor Federation, AFL-CIO's publications has enjoyed a great deal of attention for some time now–but visits to the site spiked dramatically in advance of the 2010 election season. The materials that are now available online provide a detailed picture of political life in California at any point in time over the past century. The collection provides very detailed information about politics and labor issues during Jerry Brown's past two terms as governor, and the days leading up to the election saw high traffic for that reason.

Changes to Library Printing Policy

Effective immediately, the Library has suspended printing from computer workstations in the Information Gateway for the general public. The cost of paper has risen considerably, and this limits IRLE's ability to offer zero-cost printing. However, patrons have several options for saving their research, including emailing articles to themselves, or saving files to a flash drive. So even though we regret having to suspend this service, we also believe that it will not carry a large impact for non-IRLE Library patrons.

IRLE Librarian Delivers A Presentation in London, UK

IRLE Librarian Terry Huwe gave a presentation at the Internet Librarian International (ILI) conference in London, on October 15. The title of the talk was "Connecting Scholars with Information: Three Strategies." ILI's conference emphasizes representation from all over the world, with Europe and Asia sending the most participants. There were a total of four presenters from the United States.


Labor Project for Working Families

In October, the Labor Project’s Executive Director, Netsy Firestein spoke at the California Labor Federation Women’s Conference entitled "Breaking New Ground." She spoke about unions building the family friendly workplace through bargaining, organizing and public policy, with a focus on the California legislative agenda.

The Fall Edition of Labor Family News came out with stories on domestic worker organizing and union contract campaigns for paid sick days. We contributed a blog about domestic worker organizing to the AFL-CIO Now Blog and a blog about unions as family friendly workplaces to the MomsRising Blog. Also, the Labor Project’s year in review - 2009 - 2010 is now available.

Labor Project staff conducted trainings on work family bargaining for the University Professional and Technical Employees union and paid family leave trainings for SEIU and ATU. In November and December, Labor Project Staff will do trainings for the CLUW Convention in Reno, Nevada and the UFCW Meat Packing Division in Iowa on bargaining for the family friendly workplace.



Economics Department

Economics 211, Economic History Seminar
597 Evans Hall

November 15, 2010
"How Prosperity Evolves"
Matt Ridley

Economics 235, Financial Economics Seminar
Haas School of Business, Room F320

November 11, 2010
"The Hazards of Debt: Rollover Freezes, Incentives, and Bailouts"
Ing-Haw Cheng, University of Michigan

Department of Demography
Brown Bag series
2232 Piedmont Avenue
12:10 to 1:00

December 8, 2010
The Social and Economic Returns to a College Education
Mike Hout, Demography and Sociology, UC Berkeley