Education Policy | Post Primary | Preschool | Primary | Tertiary | Search

 


Leading American academic economist to give public lecture

Leading American academic economist to give public lecture at Canterbury

July 1, 2014

A leading American academic economist will give a public lecture at the University of Canterbury next week looking at the effect of immigration on labour markets.

Professor David Card from University of California, Berkeley, will deliver the university’s annual Condliffe lecture on campus on July 8. Professor Card is a likely future Nobel laureate for his path-breaking work establishing causal relationships in labour market data.

He is most famous for work questioning whether the minimum wage has a negative effect on employment. He says traditionally economists tended to look at labour markets as if they were the same as other commodity markets, such as milk products. This idea has a lot of problems. It says that a worker gets the same wage regardless of who they work for – and assumes every litre of milk sells for the same price, he says.

``It also says that if you raise the wage that employers are forced to pay, they will hire fewer workers. During the 1980s economists started to develop better models of how labour markets really work.

``In these more realistic models, there is not a single wage: each employer sets his or her own wage, and workers have to look around to find better jobs. That all sounds totally reasonable to most people. But importantly, in this kind of world, the effect of a minimum wage is different.

``Now, when minimum wage is raised, only some firms, those that paid low wages, are affected. The higher wage may cause these firms to have more workers because it lowers their turnover rate. Before, they had low wages, high turnover and continuing vacancies. After a wage rise, workers who can only find a low wage job have less incentive to keep looking and firms end up filling their vacancies.

``That is the theory. It’s not very controversial any more. In the 1980s, however, many economists still thought that the old idea, that all firms pay the same wage and that employers are right on the knife edge as to whether to hire or fire, was correct.

``I studied the effect of a minimum wage increase in New Jersey. We collected data from fast food restaurants in New Jersey and nearby Pennsylvania, just before the minimum wage went into effect, and again eight months later.

``We compared employment changes at the stores in New Jersey that had low wages prior to the increase - and had to raise their wages to meet the new law - to the changes at two other sets of stores.

``They were those in Pennsylvania, where there was no change in the minimum, and higher-wage stores in New Jersey, that were already paying more than the new minimum. We found that the stores that had to raise their wage actually had more jobs after the rise in the minimum. Since then many other studies have found similar results,’’ Professor Card says.

In his Condliffe lecture, Professor Card will be speaking on his research findings on immigrants and labour markets, specifically how immigrants affect the labour market opportunities of natives, the success of immigrant's children and the possible slowdown in immigrant assimilation, and understanding the strong backlash against immigrants in many countries today.

ENDS

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 
Ray Columbus: NZ Music Icon Passes Away

60s New Zealand music Icon Ray Columbus has passed away peacefully at his home north of Auckland... Ray Columbus enjoyed more than three decades at the top of NZ entertainment as a singer, songwriter, bandleader, music manager and TV star. More>>

Review: Bernard Herrmann's Scores For 'Vertigo' & 'Psycho'

Howard Davis: The NZSO's adventurousness was richly-rewarded, as the deeply appreciative Wellington audience was given the opportunity not only to see a couple of Alfred Hitchcock's greatest films, but also to hear fine renditions of two of Bernard Herrmann's most accomplished film scores. More>>

ALSO:

Gordon Campbell: On Leonard Cohen

If Bob Dylan owned the 1960s, Leonard Cohen was an inescapable presence during the early 1970s period, pre-disco and pre-punk. More>>

ALSO:

Scoop Review Of Books: Pick And Camera

Through the eyes of a miner – the photography of Joseph Divis: The occupations of miner and photographer are seldom combined. The conjunction must have been very rare indeed in the era before hand-held cameras, high-speed film and flashlights More>>


Howard Davis: Review - The Cosmic Dance Of 'String Theory'

Fly My Pretties sixth album is quite possibly their best yet - a concept album in the best sense, with superb arrangements, funky grooves, and some great vocalizing, all organized around the lyrical leitmotif of string theory. More>>

Non-Natural History: Dinosaur Eggs 'Discovered' At Auckland Gardens

Auckland Botanic Gardens plant curators have unearthed what are thought to be prehistoric dinosaur eggs in the Gondwana Forest section of the expansive garden in Manurewa... In fact, the “dinosaur eggs” are part of an innovative, larger-than-life dinosaur performance and display featuring a raptor, a crested therapod and a towering Tyrannosaurus Rex. More>>

For The Birds: Kōkako Crowned Bird Of The Year

The Kōkako has been crowned New Zealand's Bird of the Year after two weeks of close competition and heated campaigning. More>>

ALSO:

  • Greening the Red Zone - Bird of the year heats up: kōtare concedes, backs kea
  • Image Out-Link - Giselle Clarkson on Twitter
  • Get More From Scoop

     
     

    LATEST HEADLINES

     
     
     
     
    Education
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news