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Collection: Faculty Working Papers  
 
Title The Effect of Wage-Payment Reform on Workers’ Labor Supply and Welfare
Author Redmount, Esther
Snow, Arthur
Warren, Ronald S., Jr.
Type of Resource text
Digital Origin born digital
Date Created 2009-08-10
Abstract We analyze the effects of a largely ignored 1885 legislative reform in Massachusetts requiring that firms provide workers the option of receiving weekly wage payments. Using an inter-temporal model of deferred compensation, we derive conditions on elasticities of labor supply that determine the effects of the reform on workers’ effective wage and utility. We then examine empirically the effects of the reform, using weekly data on mill workers in Lowell. Given the implications of our theoretical analysis, the empirical findings of positive wage and reform elasticities imply that the switch to weekly payment increased workers’ effective wage and well-being.
Keywords elasticity
labor supply
wage
welfare
Massachusetts
wage frequency
Rights Statement Copyright restrictions apply. Contact the author for permission to publish.
Note (admin) Acquired as PDF from Colorado College Department of Economics and Business. Converted to PDF/A1.b using Adobe Acrobat Professional.
Publisher Colorado College
Place of Publication Colorado Springs, Colorado
Local Identifier 2009-05
Handle http://hdl.handle.net/10176/coccc:2162
 
Attached Files
Name Description MIMEType Size Downloads
Effectof.pdf   master application/pdf 826.75KB 0

 
 
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Created: Tue, 12 Jan 2010, 14:33:35 MST by Christine Ashlock (admin) . Detailed History