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George Borjas, Harvard Monopsony, Efficiency, and the Regularization of Undocumented Immigrants (with Anthony Edo) Abstract: In May 1981, President François Mitterrand regularized the status of undocumented immigrant workers in France. The newly legalized immigrants represented 12 percent of the non-French workforce and about 1 percent of all workers. Employers have monopsony power over undocumented workers because the undocumented may find it costly to participate in the open labor market and have restricted economic opportunities. By alleviating this labor market imperfection, a regularization program can move the market closer to the efficient competitive equilibrium and potentially increase employment and wages for both the newly legalized and the authorized workforce. Our empirical analysis reveals that the Mitterrand regularization program particularly increased employment and wages for low-skill native and immigrant men, and raised French GDP by over 1 percent.
Matthew Johnson, Duke Management Practices, Workplace Injuries, and the Effects of Government Safety Regulations (with Nick Bloom, David I. Levine, and Alison Pei) Abstract: Workplace injuries are a massive economic burden, yet they persist across a wide range of workplaces. Why? Reducing injury risk entails financial and opportunity cost, but it may also require adoption of management practices that are slow to diffuse. Linking confidential data from the Census Bureau with data on workplace injuries, we find that establishments with more structured management practices (monitoring production, setting targets, and establishing incentives) have substantially lower injury rates, a relationship that holds within industries and within establishments over time. We then examine how this variation in management influences the effects of government safety regulations on workers and firms. Enforcement inspections by the Occupational Safety and Health Administration reduce injuries, but only at establishments with few structured management practices. Inspections also lead to an increase in establishments’ use of structured management practices. Inspections have no detectable effect on establishments’ survival, investment, or productivity.
Discover internships and full-time opportunities with labor unions, law firms representing unions and/or individuals, and other organizations dedicated to workers’ rights. The Labor Advocacy Career Fair (formerly known as the Social Justice Career Fair) is open to all Ithaca-based Cornell students and will be a featured event during the university's annual Union Days series, sponsored by the ILR School.