March 2012(No. 56)

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


In This Issue:

Especially Recommended:

Economic Inequality: Causes, Consequences and Solutions – A Teach-In
Wednesday April 4 2012, 2012, 1pm – 5pm

IRLE Colloquium Series

Monday, March 5, 2012 Ι 12pm – 1pm
"Experience Rating Employers for Workers Compensation: Safety or Suppression?"
Frank Neuhauser, Survey Research Center, University of California, Berkeley

Monday, March 19 Ι 12pm – 1pm
"The Determinants and Effects of Fiscal Spending: Evidence from the 2009 American Recovery and Reinvestment Act"
Arin Dube, Economics, University of Massachusetts-Amherst

Monday, April 2 Ι 12pm – 1pm
"Institutional Exuberance, Risk and Return in Systemic Financial Crisis, New York, London, Frankfurt, 2008"
Abby Larson, Sociology, University of California, Berkeley

IRLE News and Events
Industrial Relations Journal Publishes Anniversary Issue
Professor Steve Raphael Appointed Editor of the IRLE Working Paper Series
Recent Working Papers
IRLE in the News: A Busy February

IRLE Program News
The Labor Center
IRLE Profile: The Labor Center's Nari Rhee
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 News and Events
UC Berkeley Events


IRLE News and Events

IRLE and the Labor Center Sponsor Major Event on Economic Inequality

Economic Inequality: Causes, Consequences and Solutions A Teach-In Featuring:
Robert Reich, Goldman School of Public Policy
Emmanuel Saez, UCB Department of Economics
Paul Pierson, UCB Department of Political Science
Stephanie Luce, CUNY Murphy Institute
Steven Pitts, UCB Center for Research on Labor and Education
Michael Reich, Institute for Research on Labor and Education

Location: Theater at the Berkeley Art Museum
Wednesday, April 4, 2012, 1pm – 5 pm

Further Information:
Contact Rebecca Graham,, (510) 642-9187
(More information and a flyer will follow in mid-March)


IRLE’s Spring 2012 Colloquium Series

All events are located at the Institute for Research on Labor and Employment, 2521 Channing Way, Berkeley, CA. A light lunch will be served. Please note that some presentations may fall on a Wednesday in addition to the regular Monday time slot.

To attend an event:Please RSVP to Myra Armstrong,

Monday, March 5, 12 PM –1PM
Experience Rating Employers for Workers Compensation: Safety or Suppression?
Frank Neuhauser, Survey Research Center, University of California, Berkeley

Monday, March 19, 12 PM –1PM
The Determinants and Effects of Fiscal Spending: Evidence from the 2009 American Recovery and Reinvestment Act
Arin Dube, Economics, University of Massachusetts-Amherst

Monday, April 2, 12 PM –1PM
Institutional Exuberance, Risk and Return in Systemic Financial Crisis, New York, London, Frankfurt, 2008
Abby Larson, Sociology, University of California, Berkeley


Industrial Relations: A Journal of Economy and Society Publishes Anniversary Issue

The January issue of Industrial Relations: A Journal of Economy and Society, the UC Berkeley-Institute for Research

on Labor and Employment academic journal, is currently available online.  The journal is celebrating its 50th year of publication. As part of the celebration, the journal will reprint some of the seminal articles that have appeared in the journal.


Industrial Relations: A Journal of Economy and Society, Volume 51, No. 1

Steve RaphaelArticles and Abstracts

Industrial Relations: Celebrating and Reflecting upon Fifty Years of Publication

Why a New Journal?


Speaking both personally and officially, I am delighted to salute the appearance of this first issue of Industrial Relations: A Journal of Economy and Society.
Since my service as the first Director of the Institute of Industrial Relations at Berkeley, I have retained a close personal attachment to the Institute and a sense of pride in its growing record of accomplishment. And because I am a student in the industrial relations field, I can speak with some personal conviction of the great need for this type of publication.
As President of the University of California, I am pleased to see this new venture undertaken by the Institute of Industrial Relations, one of the University's many important research and service organizations. The publication of new knowledge, insight, and scholarly speculation is an essential part of the advancement of learning. The free marketplace of ideas cannot operate effectively without the avenues of communication provided by the scholarly journals which serve every field of research. I am sure that Industrial Relations will prove a stimulating vehicle for the exchange and development of ideas about a highly significant segment of modern industrial society.

Ross's Introduction in Context


Industrial Relations Climate and Union Commitment: An Evaluation of Workplace-Level Effects


This paper examines the relationship between industrial relations (IR) climate and union commitment. Using a multi-workplace sample from North East England, aggregation analysis provided support for treating IR climate as a workplace-level variable, and workplace IR climate was negatively associated with union commitment. However, IR climate moderated none of the relationships between individual-level antecedents and union commitment.

"Voice Within Voice": Members' Voice Responses to Dissatisfaction with Their Union


While the role of unions as collective voice is well understood, how union members themselves voice their preferences within their union is not. This study represents an important step in understanding this critical dimension of the union–member relation. Using survey data from an Australian union, I investigate how union members voice dissatisfaction with their union. Union loyalty, perceived opportunities to voice, union responsiveness, and collectivist ideology predicted willingness to voice directly to the union. Perceived union support and instrumentality did not predict members' willingness to voice directly to the union but were associated with other voice responses.

The Effect of State Workers' Compensation Program Changes on the Use of Federal Social Security Disability Insurance


In addition to traditional forms of private and public medical insurance, two other large public programs help pay for costs associated with ill health. In 2008, Workers' Compensation (WC) insurance provided $57.6 billion in medical care and cash benefits to employees who are injured at work or contract a work-related illness, and Social Security Disability Insurance (DI) provided $106 billion to individuals who suffer from permanent disabilities and are unable to engage in substantial gainful activity. During the 1990s, real DI outlays increased nearly 70 percent, whereas real WC cash benefit spending fell by 12 percent. There has been concern that part of this relationship between two of the nation's largest social insurance programs may be due to individuals substituting toward DI as state WC policies tightened. We first show that this negative correlation between the national series does not hold over time within states, the level at which a causal relationship should operate. We then test for a causal effect of changes in WC enrollment on DI applications and new DI cases within states over time, using state policy (the maximum WC benefit) as an instrument for WC enrollment. Despite a strong first stage fit, we find no statistically significant evidence that WC tightening caused DI rolls to increase, although the standard errors are large enough that we cannot reject effects of substantial magnitude. We conclude it is unlikely that state WC changes were a meaningful factor in explaining the rise in DI during our study period of 1986-2001, although further study using individual level data is warranted.

Globalization, Domestic Institutions, and Enforcement of Labor Law: Evidence from Latin America


This paper provides new measures of government enforcement of labor regulations in eighteen Latin American countries between 1985 and 2009, and explores how it is affected by external and domestic factors. The results suggest that governments react to the competitive pressures produced by trade opening by turning a blind eye to noncompliance, but increase enforcement in response to higher FDI. Governments also react to the demands of their constituent base to keep their support and reinforce partisan affinities, and workers are more effective in more democratic systems.

Discretion in Context: A Moderated Mediation Model of the Relationship between Discretion and Turnover Intentions


This paper examines the relationship between employee discretion and turnover intentions. We test the proposition that this relationship is mediated by employee stress and moderated by employee perceptions of staffing adequacy. We maintain that in assessing the potential effects of increased employee discretion, scholars must also examine the mechanisms through which these benefits are delivered, and the context in which it is provided. In an effort to study discretion in context, we develop and test a "moderated mediation" model in the healthcare setting. Our findings support the hypotheses that employee stress mediates the relationship between discretion and turnover intentions. In addition, employee perceptions of staffing adequacy are shown to moderate the relationship between employee discretion and stress.

Climbing the Job Ladder: New Evidence of Gender Inequity


An explanation for the gender wage gap is that women are less able or less willing to "climb the job ladder." However, the empirical evidence on gender differences in job mobility has been mixed. Focusing on a subsample of younger, university-educated workers from an Australian longitudinal survey, we find strong evidence that the dynamics of promotions and employer changes worsen women's labor market position.

Who Do Firms Lay Off and Why?



I develop and test a structural–historical account of corporate reductions in force (RIF) to assess whether this widespread process was redistributive or efficient. I argue that changes in the context of restructuring in recent decades, coupled with substantial changes in organizational compensation systems, lead to temporal variation in the likelihood of "broken-contract" RIF, in which firms terminate highly paid managers, and "trimming the fat" RIF, in which firms terminate low-performing managers. Analyses of personnel records from a Fortune 500 manufacturing firm indicate that low performance leads to increased risk of separation in each of the two RIF undertaken by the firm, with the effect becoming stronger over time in part because of changes in the firm's performance management system. By contrast, high wages were a more important factor explaining departure during the firm's RIF in the 1980s–when competitive pressures to default on bonded contracts were strong–than during its RIF in the 1990s.


Steve Raphael Is Appointed Editor of the IRLE Working Paper Series

Steve RaphaelSteve Raphael (Goldman School of Public Policy) has taken over leadership of the IRLE Working Paper Series, replacing Trond Petersen (Sociology, Haas School of Businesss) after many years of service. IRLE extends its appreciation to Trond for his leadership!

Recent Working Papers

IRLE working may be downloaded from the following locations:

Recent Additions:

James R. Lincoln; Bernadette Doerr: Cultural Effects on Employee Loyalty in Japan and The U. S.: Individual- or Organization-Level? An Analysis of Plant and Employee Survey Data from the 80's, 2012

Jesse Rothstein: Unemployment Insurance and Job Search in the Great Recession, 2011


Recent Working Papers

Papers are available online at:

Ready Made Analysis of Hospital de la Familia's Cataract Surgery Program in Guatemala
Working Paper 117-12
January 2011
Lawrence Thal, Clair Brown, Eric Freeman, Kate Belohlav Ariel Chait

Cultural Effects on Employee Loyalty in Japan and The U. S.: Individual– or Organization-Level?
Working Paper 116-12
January 2012
James Lincoln and Bernadette Doerr

Unemployment Insurance and Job Search in the Great Recession
Working Paper No. 115-12
October 2011
Jesse Rothstein


IRLE in the News: A Busy February

Many community members have been interviewed in the media lately, and the IRLE Web lists every occasion that we learn about. The following list is joined by the Labor Center's own "In the News" page, and taken together, they clearly show the at IRLE is extending its media reach.


IRLE in the News, February 2012

Barry Eidlin (PhD Candidate, Sociology) was interviewed by Radio-Canada (Francophone), and discussed the current state of the U.S. labor movement
Radio-Canada (French), February 5, 2012

Report: Golden years of blacks, Latinos more likely to be tarnished by poverty
CNN, February 23, 2012

Higher Minimum Wage Good For Workers, Economy
Hartford Courant, February 19, 2012

Does minimum wage boost help or hurt?
Illinois Times, February 9, 2012

Tipped workers hope for hike in sub-minimum wage
UPI, February 6, 2012

Does Right to Work Actually Lead to More Jobs?
American Prospect, February 6, 2012

Higher minimum wage in San Jose would boost the broader economy
Op-Ed by Sylvia Allegretto in the Mercury News, February 4, 2012

UC study says hybrid pensions would hurt lowest-paid workers
Sacramento Bee, February 3, 2012



The Labor Center



Our latest research brief, Black and Latino Retirement (In)Security (February 2012, by Nari Rhee)finds that Black and Latino seniors face even tougher times in retirement than American seniors as a whole. Based on data from the U.S. Bureau of Labor Statistics Current Population Survey and U.S. Census Bureau American Community Survey.

Steven Pitts issued a first-time "Annual Report: Black Employment and Unemployment in 2011" on Tuesday, January 17, 2012. The report was quickly featured on, KGO radio news, and Steven continues to issue the "Monthly Black Worker Report" on the first Friday of every month.


Nari RheeLabor Center Profile:
The Mainstream Media light is shining on Nari Rhee

The Labor Center's Nari Rhee has received significant media attention for three reports she released in the past month.

The most recent was a policy brief, Black and Latino Retirement (In)Security PDF, whichfinds that Black and Latino seniors face even tougher times in retirement than American seniors as a whole. It is based on data from the U.S. Bureau of Labor Statistics Current Population Survey and U.S. Census Bureau American Community Survey.

Prior to this, Nari produced two detailed reports on retirement security and pension reform: Meeting California's Retirement Security Challenge through a State Sponsored Retirement Plan: Policy Design Challenges and Options PDF, which outlines key choices in developing a state sponsored retirement system for private sector workers in California who lack access to a workplace pension, and Potential Impact of Governor Brown's Pension Reform Plan on Low Wage Workers PDF, which looks at Governor Brown's public pension reform proposal and how it will affect low-wage workers employed by state and local government.

Nari's research and policy analysis has been widely covered in the California and national press, so far by the Huffington Post, Colorlines, the Sacramento Bee, CNN, and Reuters.

Nari has also been invited to write a piece for a new PBS website called (to be released in May).

Nari's edited volume on retirement security from last October is also receiving renewed media interest. The Los Angeles Times, the Sacramento Bee, and the website all recently ran pieces that utilized this research.

IRlE and the Labor Center salute Nari's research provides the media with important background and context as they report on important debates in the state concerning retirement security.



Thursdaysafter dark: Occupy the Wall (across the) Street–weekly slide show projection onto the building across the street from the IRLE building.

Upcoming workshops: Visit for complete information and registration forms.

March 19-23: Strategic Campaigns (Application Deadline 2/24!)

April 25-26: Media Skills Training, in collaboration with the California Labor Federation

June 28-29:Online media training

July 23-27: Summer Institute on Union Women at Sonoma State University

August 16-17: Advanced Strategic Research

Past Events:
Swedish union leaders and legal experts traveled to the United States to investigate reports of workers' rights violations at Loomis US. The group held a hearing on at the UC Berkeley Labor Center Tuesday, Feb. 21. Read here for more.

News Clips

A retirement plan for the forgotten
Los Angeles Times, February 23, 2012

Fewer employer retirement benefits lead to high retirement insecurity in California, February 7, 2012

UC study says hybrid pensions would hurt lowest-paid workers
Sacramento Bee, February 3, 2012

California Workers' Rights authors on Your Legal Rights with Chuck Finney audio
KALW, February 1, 2012

Working Conditions at Apple Suppliers audio
Katie Quan on KQED's Forum, January 17, 2012

How San Francisco Organizers Rewrote the Rules to Save Minimum Wage video
Colorlines, January 27, 2012


California Public Employee Relations

CPER Online Journal
Issue no. 205 will be online in March.

In the upcoming issue, attorney Bruce Barsook  (Liebert Cassidy Whitmore) defines the conditions under which unilateral employer actions are legally permissible; the topic of privatization of public schools is covered by Michael Egan, assistant executive director of the California Teachers Association; and readers can preview a third chapter of a book in progress by California Federation of Teachers Communications Director Fred Glass (From Mission to Microchip: A History of the California Labor Movement, forthcoming from Heyday Press). CPER No. 203's excerpt discussed the rise of public section unionism. CPER No. 204's chapter focused on the successful push for representation among public education workers. Our third chapter, "Feminist Collective Bargaining Meets the Civil Service," chronicles organizing and the rise of affirmative action.

As always, the Recent Developments section covers the latest in court cases, PERB decisions, arbitrations, legislation, and bargaining affecting public sector employees.

Attention arbitrators, labor relations and union reps:
Share with CPER readers your interesting arbitration cases. Our goal is to publish awards covering a broad range of issues from the state's diverse pool of arbitrators. Send your decisions to CPER Journal Editor Katherine Thomson, Institute for Research on Labor and Employment, 2521 Channing Way, University of California, Berkeley, CA 94720-5555. Or email

CPER Pocket Guide Series

CPER recently published the 14th edition of the Pocket Guide to the Meyers-Milias-Brown Act, updated by attorney Tim Yeung (Renne Sloan Holtzman and Sakai). The act covers collective bargaining for local government employees. In the next few months, we will publish a new edition of our best seller for peace officers, Pocket Guide to the Public Safety Officers Procedural Bill of Rights Act and the 4th edition of Pocket Guide to the Family and Medical Leave Acts.

Recently published: the second edition of Pocket Guide to Disability Discrimination in the California Workplace, by M. Carol Stevens et al.  Disabled California workers generally turn to two basic laws to remedy discrimination they encounter in the workplace – the federal Americans with Disabilities Act of 1990 and the California Fair Employment and Housing Act. This guide includes references to the text of the law and the agencies' regulations that implement the statutory requirements; similarities and differences between the FEHA and the ADA (including the ADAAA), plus a chart comparing key provisions of the laws; a discussion of other legal protections afforded disabled workers, such as the federal Rehabilitation Act of 1973, the federal Family and Medical Leave Act, the corresponding California Family Rights Act, and workers compensation laws; and major court decisions that interpret disability laws.

All guides can be ordered at the CPER website,


Center for the Study of Child Care Employment


The Center for the Study of Child Care Employment (CSCCE) is pleased to announce the release of a new report: Learning Together: A Study of Six B.A. Completion Cohort Programs in Early Care and Education, Year 4.

Learning Together is a 5-year longitudinal study focusing on four counties' efforts to expand bachelor's degree opportunities in early childhood education (ECE) for working adults and the institutional structures and supports related to degree attainment. This year's report funded by First 5 Alameda County-Every Child Counts, First 5 San Francisco, WestEd-E3 Institute, and the W. Clement and Jessie V. Stone Foundation, presents results of fourth year interviews with graduates. The report reveals that two to three years post degree, nearly 95 percent of graduates remain in ECE field, and that graduates overwhelmingly report personal, professional and educational benefits as a result of their B.A. degree cohort program. As a result of their degree attainment many now earn more, have advanced in their careers, and continue to explore educational opportunities. Graduates also identified several important areas for programmatic improvement and discuss workplace characteristics that support or impede their abilities to engage in good practice.

To access this or any of our reports, visit our website at


Center for Wage and Employment Dynamics

Sylvia Allegretto Presentations and Opinion Pieces by CWED Co-Chair Sylvia Allegretto

Sylvia Allegretto gave a presentation on inequality to the California Assembly Democrats, at their annual policy retreat held at UC Davis. Feb. 8, 2012.

On February 29, 2012, Sylvia gave an encore presentation on inequality to the San Francisco Chapter of the National Association of Business Economics roundtable.

The San Jose Mercury News published the following Op-Ed Column:

"Higher minimum wage in San Jose would boost the broader economy"


Institute for Research on Labor and Employment Library

HathiTrust: UC's Extended Collection of Digital Books and Media, 10 Million Strong and Growing

Many of us think first of the California Digital Library as our main gateway to digital media, but CDL itself is a member of a much larger consortium, called HathiTrust. HathiTrust is a broad collaborative effort, and it seeks to make digitally scanned books and other media available, under the strictures of copyright, to academic communities of member universities. Google's large-scale book scanning project provided a crucial impetus that led to the launch of HathiTrust. Donor institutions collaborated to work out the details governing digital access under copyright, and have since expanded the Trust's mission. The resulting collection now exceeds 10 million digital files, and is growing all the time. As such, HathiTrust is an important new resource for all academics, and the Library staff urge you to explore its offerings. HathiTrust URL:


1946 Oakland Strike "We Called It A Work Holiday: The 1946 Oakland Strike" Gains Four More Panels

Four more oversized panels will be scanned and added to the online exhibit of the 1946 Oakland General Strike by end the end of April.



Reserve Reading Continues to Grow

Continuing a trend that began two years ago, campus instructors (both faculty and graduate student instructors) are depending on the IRLE Library for course reserve titles. Since the instructors and their students are finding us as opposed to responding to direct outreach, the trend suggests that the titles placed on reserve are not available elsewhere on campus or as digital files.


Labor Project for Working Families

Save Our Public Schools
An epidemic of closures is plaguing public schools across the United States, and it shows no sign of abatement. Download the Winter 2012 issue of the Labor Project's newsletter to learn more:

Check Out Our New Website
The Labor Project has launched a newly redesigned website featuring downloadable resources, publications, research and contract language on family-friendly workplace policies. Visit us online at to learn more about our work and how you can join us to help build the 21st century family-friendly workplace.

Videos on CA State Disability Insurance & Paid Family Leave
The Labor Project, on behalf of the California Work & Family Coalition, has developed informational videos in English and Spanish about California's State Disability Insurance and Paid Family Leave programs. To view the videos go to:



Center for Chinese Studies
2223 Fulton Street
IEAS Conference Room, sixth floor

March 5, 2012
Waking the Green Tiger, Film - Documentary, Gary Marcuse, filmmaker


Center for Japanese Studies
2223 Fulton Street
IEAS Conference Room, sixth floor

March 22-23, 2012
Migration and Competitiveness: Japan and the United States.
Center for Global Partnership, John D. and Catherine T. MacArthur Foundation, Philip Martin, Professor and Chair, UC Comparative Immigration & Integration Program, UC Davis


Center for Labor Economics, Labor Lunch Series
608-7 Evans Hall

March 2, 2012

Parent-Child Information Frictions and Human Capital Investment: Evidence from a Field Experiment", Peter Bergman, UCLA


Center for Latin American Studies

March 5, 2012
12:00 –1:15 pm
370 Dwinelle Hall

"Triumph of the BRICs? Higher Education Expansion in the Developing World and the Changing Global Economy", Martin Carnoy, Stanford University


Economics Department

Economics 211, Economic History Seminar
597 Evans Hall

March 5, 2012
"Railroads and American Economic Growth: New Data and Theory", Rick Hornbeck, Harvard University

March 19, 2012
"The Great Recession in Historical Perspective", Peter Temin, MIT

Economics 218, Psychology and Economics Seminar
597 Evans Hall

March 6, 2012
Cheit Hall, Wells Fargo room (4th floor)
"Behavioral Economics and Incentives in Health Care", Joint with Behavioral Change
Speaker: George Loewenstein, Carnegie Mellon University

Economics 251, Labor Economics Seminar
648 Evans Hall

March 1, 2012
"The Consumption Value of Postsecondary Education", Brian McCall, University of Michigan

March 8, 2012
"The Effects of Proposition 209 on College Enrollment and Graduation Rates in California", V. Joseph Hotz, Duke University

March 15, 2012
"The Economic Impact of Social Ties:
Evidence from German Reunification", Tarek Alexander Hassan, University of Chicago Booth School of Business

March 22, 2012
"How Large are the Gains from Economic Integration? Theory and Evidence from U.S. Agriculture, 1880-2002", Dave Donaldson, Massachusetts Institute of Technology

Economics 291, Department Seminar
648Evans Hall

March 21, 2012
"Advertising and Competition in Privatized Social Security: The Case of Mexico", Ali Hortacsu, Professor of Economics, University of Chicago


Haas School of Business
Management of Organizations
PHDBA 259S-1, MORS Colloquium
320 Cheit Hall

March 22, 2012
"Accounting for the Gap: A Firm Study Manipulating Organizational Accountability in Pay Decisions.", Emilio J. Castilla, MIT Sloan