September 2011 (No. 52)

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


In This Issue:

Especially Recommended:
The Labor Center’s “Evening with the All-Stars: Celebrating the Strength and Spirit of Working People,” featuring AFL-CIO President Richard L. Trumka, September 22, 2011

IRLE News and Events
Letter of Welcome from IRLE Director Michael Reich
Kim Voss and Irene Bloemraad Discuss Their New Book
IRLE Colloquium Series
IRLE Faculty Grant Recipients, 2010-11
Industrial Relations: A Journal of Economy and Society: Vol. 50, No.4
Recent Working Papers

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


Especially Recommended: Evening with the "All-Stars"

The Labor is hosting an “Evening with the All-Stars: Celebrating the Strength and Spirit of Working People,” which will include AFL-CIO President Richard L. Trumka. The event will be held at the Berkeley Art Musuem on Thursday, September 22. For further information and tickets, see the Labor Center’s description at:


IRLE News and Events

Letter of Welcome from IRLE Director Michael Reich

Dear Friends and Colleagues:

As the fall term begins, IRLE starts the academic year with a very strong basis for new growth and expanded research goals. We owe our thanks and appreciation to Acting Director Karen Chapple, who guided IRLE through a very dynamic period, during which IRLE and its programs received wide acclaim.

During 2010-11, the IRLE colloquium series was greatly enlarged under Karen’s oversight, including a special series on Job Creation. In the coming days our fall 2011 colloquium series will be finalized, and will be reported on by IRLE eNews. The Donald Vial Center for Employment in the Green Economy and The Labor Center conducted important research on the educational needs of the “green” economy’s workforce. The Labor Center enjoyed a banner year overall, with a much-enlarged conference agenda and roster of publications, as well as wide media attention. CPER has launched an online journal, and CSCCE continues its leading roles in the study of child care employment. The IRLE Library has added staff to facilitate the increased demand for online publishing and Web services. The Labor Project for Working Families has consolidated many of its campaign-driven Web content into a single site. Faculty involvement in IRLE projects remains very high, which strengthens IRLE during our turbulent times. All of these achievements–just a few highlights from the past year and Karen’s leadership–enable us to focus on the pressing policy issues of the day.

With this record in mind, I am very excited to return from sabbatical and continue what Karen and all of the IRLE community kept thriving while I was away. I will be conferring with program heads, the faculty and our extended as we set our research agenda for 2010-11. It is my full expectation that IRLE will advance its role as a key provider of policy analysis, cutting-edge research, and community outreach and service during this coming year, and I look forward to working with you all.


Michael Reich,
Professor of Economics and IRLE Director


Kim Voss and Irene Bloemraad Discuss Their New Book

On Tuesday, 20 September 2011, 5:00 –6:30 PM Kim Voss and Irene Bloemraad will read and discuss their new book at University Press Books:

Rallying for Immigrant Rights: The Fight for Inclusion in 21st Century America

From Alaska to Florida, millions of immigrants and their supporters took to the streets across the United States to rally for immigrant rights in the spring of 2006. The scope and size of their protests, rallies, and boycotts made these the most significant events of political activism in the United States since the 1960s. This accessibly written volume offers the first comprehensive analysis of this historic moment. Perfect for students and general readers, its essays, written by a multidisciplinary group of scholars and grassroots organizers, trace the evolution and legacy of the 2006 protest movement in engaging, theoretically informed discussions. The contributors cover topics including unions, churches, the media, immigrant organizations, and immigrant politics. Today, one in eight U.S. residents was born outside the country, but for many, lack of citizenship makes political voice through the ballot box impossible. This book helps us better understand how immigrants are making their voices heard in other ways.

Hosted by University Press Books, University of California Press and the 2430 Arts Alliance.

University Press Books
2430 Bancroft Way (between Telegraph & Dana), Berkeley


IRLE Fall Colloquium Series: Roster of Events

All events take place at the IRLE Large Conference Room, 2521 Channing Way. A light lunch will be served.

RSVP to Myra Armstrong,

MONDAY, SEPTEMBER 12 –12pm - 1pm: David I. Levine, Haas School of Business
Title: “The Effects of OSHA Inspections: Results from a Randomized Controlled Trial”
(Michael W. Toffel, Harvard Business School, Boston, MA; Matthew S. Johnson,
Harvard Business School, Boston, MA)

We analyze a natural field experiment to study how randomized workplace safety inspections affect employee outcomes such as employment, earnings, and occupational health and safety, as well as employer outcomes such as plant survival, sales, and credit ratings.  We analyzed the effects of randomized inspections at 410 inspected establishments in California, comparing them to 410 matched control establishments that were eligible but not chosen for randomized inspections.  Randomly inspected establishments realized a 9% percent reduction in injury rates and 24% percent reduction in injury costs.  We find no evidence that these increases in workplace safety came at the expense of plant survival, sales, employment, or credit ratings.

WEDNESDAY, SEPTEMBER 21 , 12pm –1pm: Cameron Anderson, Haas School of Business
"The Local Ladder Effect: Social status and subjective well-being"

MONDAY, SEPTEMBER 26 , 12 pm –1pm: Jesse Rothstein, Goldman School of Public Policy
**Title: To Be Announced

WEDNESDAY, OCTOBER 19, 12pm –1pm: Heather Haveman, Sociology
**Title: To Be Announced

MONDAY, OCTOBER 24, 12pm –1pm: Jo-Ellen Pozner, Haas School of Business
**Title: To Be Announced

MONDAY, NOVEMBER 14 , 12 PM –1PM: Laura Kray,Haas School of Business
Title: “Gender Discrimination in Negotiator Deception”

Hold the Date: IRLE’s Fall Reception Will be Held on October 12

The fall reception will be held on October 12 at 3:30, in the Large Conference room at IRLE. Myra Armstrong will be sending out invitations soon.


IRLE Fall 2011 Faculty Grants

We are pleased to announce the following awards, which will support graduate student researchers as well as other research initiatives.

Cameron Anderson, Haas School of Business
“Power and Dissent: Implications for Ethics in Organizations”

Irene Bloemraad & Cybil Fox, Sociology)
“Interdisciplinary Immigration Workshop”

Clair Brown, Economics
“Ready Made Social Impact Assessments”

Ruth Collier, Political Science
“Scaling within the a-net: Progressive Bureaucrats and State-Induced Mobilization”

Neil Fligstein, Sociology
“Social Effects of the Great Recession”

Heather Haveman, Sociology
A Contested Institution: The Editorial Structure of Law Reviews

Jerome Karabel, Sociology
“American Exceptionalism, Social Well-Being and the Quality of Life in the United States”

Laura Kray, Haas School of Business
“Gendered Reactions to Hierarchy”

David Levine, Haas School of Business
“Incentives of a Novel Sales Offer”

James Lincoln, Haas School of Business
“Ownership, reciprocity, and 3rd party ties in Japanese corporate networks”

Trond Petersen, Sociology
“Family and Careers”

Jo-Ellen Pozner, Haas School of Business
“The Benefits of Bad Publicity”

Jesse Rothstein, Goldman School of Public Policy
“Incentive Pay and Labor Supply: The Case of Teachers”

Richard Scheffler, Public Health
“ACO and Antitrust Conference”

Kim Voss, Sociology
“The impact of the 2006 Protests for Immigration Rights: Exploration of Latino Workers’ Understanding of Social Hierarchy - and their place in it - in the United States”

Richard Walker, Geography
“The Living New Deal”


Industrial Relations: A Journal of Economy and Society

The Journal at 50

IRLE’s top-ranked journal is celebrating its fiftieth year of publication. In recognition of this milestone, IRLE is coordinating a variety of special projects with Wiley-Blackwell, the journal’s publisher. An issue that highlights the most influential articles the journal has published is in development, as well as a review of the journal’s visual appearance. More news will follow during the coming academic year.


Volume 50, No. 4: Abstracts

“Why Are Quit Rates Lower Among Defense Contractors?”
Todd A. Watkins, Thomas Hyclak

This paper presents empirical evidence of lower quit rates at small manufacturers with defense contracts and examines whether this is associated with differences in their human resource policies and organizational practices and strategies. We take advantage of an original data set to compare labor quits, workforce skills and occupational structure between defense contracting and non-contracting small manufacturers in eastern PA. We find that the remarkably large defense contractor advantage in quit rates–7 percentage points–is almost totally explained by differences in skills, operational strategies, and workforce management and training practices, suggesting a mediation effect through these HR practices. Defense contracting status emerges as an important overlooked variable in HRM studies.


“Gender Sorting at the Application Interface”
Roberto M. Fernandez, Colette Friedrich

We document gender sorting of candidates into gender-typed jobs at the point of initial application to a company. At this step of the hiring process, the firm has implemented a policy whereby organizational screeners’ discretion has been eliminated such that there is no opportunity for contact between hiring agents and applicants. Thus, the job choices studied here offer unique insight as they are uncontaminated by screeners’ steering of candidates toward gender-typed jobs. Even in the absence of steering, we find clear patterns of gendered job choices that line up with gender stereotypes of job roles. Moreover, these gendered patterns recur both within individuals and within race groups. Comparing our findings to the pattern of job sorting in the external local labor market, we find that supply-side factors do not fully account for the levels job sex segregation observed in the open labor market. Although probably not the entire story, we show clear evidence that supply-side sorting processes are important factors contributing to job sex segregation.


“The Employment Effects of Lower Minimum Wage Rates for Young Workers: Canadian Evidence”
Michael Shannon

Between 1986 and 1998 six of the ten Canadian provinces abolished their lower minimum wage rates for younger teenage workers. Using data from the Canadian Labour Force Survey this paper evaluates the effects of abolition on the employment and weekly hours worked of 15-16 year-olds using teenagers in provinces where there is no legislative change and young people above the age to which youth rates applied as control groups. The results provide some evidence that abolishing these youth rates significantly lowered employment and work hours of 15-16 year-olds but the lack of evidence for some jurisdictions and patterns of effects using age controls do raise some questions regarding the interpretation of the results.

“What Would They Do? Childcare under Parental Leave and Reduced Hours Options”
Robert Drago

Time diary data are used to simulate the effects of parental leave and reduced hours arrangements on childcare time among parents of infants. Estimates suggest that coupled fathers would apply approximately around 70 percent of working time reductions under leave or reduced hours to childcare. Both coupled and single mothers translate working time reductions into childcare at higher rates. The analysis highlights inequalities across lines of gender, marital status and socio-economic status associated with existing policies, and suggests policy innovations to both raise parental investments in childcare time and reduce levels of inequality.

“What Types of Diversity Benefit Workers? Empirical Evidence on the Effects of Co-Worker Dissimilarity on the Performance of Employees”
Fidan Ana Kurtulus

This paper explores the consequences of grouping workers into diverse divisions on the performance of employees using a dataset containing the detailed personnel records of a large U.S. firm from 1989-1994. In particular, I examine the effects of demographic dissimilarity among co-workers, namely differences in age, gender and race among employees who work together within divisions, and non-demographic dissimilarity, namely differences in education, work function, firm tenure, division tenure, performance and wages among employees within divisions. I find evidence that age dissimilarity, dissimilarity in firm tenure, and performance dissimilarity are associated with lower worker performance, while wage differences are associated with higher worker performance. My analysis also reveals that the effects of certain types of dissimilarities get smaller in magnitude the longer a worker is a part of a division. Finally, the paper provides evidence that the relationships between performance and the various measures of dissimilarity vary by occupational area and division size.

“Pay structures and quit rates: A multi-level approach using benchmarking data”
Chris Riddell

Using unique linked employee-employer benchmarking data, the paper estimates the impact of pay structures on quit rates using multi-level models. The analysis examines several aspects of an organization’s compensation structure with a focus on the effect of pay dispersion between employees at the same level in the firm hierarchy, as well as pay dispersion throughout the hierarchy. Overall, the results indicate that firms with egalitarian pay structures have lower quit rates, a finding that is robust to a large set of empirical specifications.

“Matching Matters in 401(k) Plan Participation”
Keenan Dworak-Fisher

This study offers new evidence on the effects of the matching contributions made by employers to 401(k) plan accounts on plan participation rates, exploiting microdata from the National Compensation Survey, a large, nationally representative, establishment dataset. It addresses the potential endogeneity of the matching contributions by employing coworker and labor market characteristics as instruments. The results indicate that employer matches have substantial effects. They also indicate that higher match rates tend to be correlated with workers having lower propensities to save; correcting for this endogeneity produces estimates that are bigger than those seen through direct cross-sectional comparisons.


Recent Working Papers

Working Papers may be found in the eScholarship repository, and on the IRLE Web:

Brown, Clair; Chait, Ariel; Freeman, Eric
Berkeley ReadyMade Impact Assessment: Developing an Effective and Efficient Assessment Template for Social Enterprises

Collier, Ruth Berins; Palmer-Rubin, Brian
Latin America’s New World of Work: Changing Traits of Work and Problem Solving

Cray, Adam; Nguyen, Tram; Pranka, Carol; Schildt, Christine; Scheu, Julie; Rincon Whitcomb, Erika: Job Creation: A Review of Policies and Strategies

Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio
Compensation Structure and the Creation of Exploratory Knowledge in Technology Firms

Haveman, Heather A.; Beresford, Lauren S.
If You’re So Smart, Why Aren’t You the Boss? Explaining the Persistent Vertical Gender Gap in Management

Haveman, Heather A.; Habinek, Jacob; Goodman, Leo A.
Who Are the Entrepreneurs? The Elite or Everyman?

Kennedy, Jessica A.; Anderson, Cameron; More, Don A.
Social Reactions to Overconfidence: Do the Costs of Overconfidence Outweigh the Benefits?



The Labor Center

Great summer of workshops and trainings
We just completed a full summer of workshops and trainings, with great turnout and excellent responses from union members, student activists, and community organizations who participated.

Gala Event

The big news at the Labor Center is our third “Evening with the All-Stars: Celebrating the Spirit and Strength of Working People” event coming up September 22. This event, in the gardens and terraces of the UC Berkeley Art Museum, will honor many stars who have championed working people this year. Our special guest speaker is Richard Trumka, President, AFL-CIO. There’s still room for you to join us for this special event, please contact us today to buy tickets.

Recent Reports

Economic Impacts of Early Care and Education in California PDF
August 2011, by Jenifer MacGillvary and Laurel Lucia
»Press Release

Early care and education (ECE) is an important industry in California, serving more than 850,000 California children and their families and bringing in gross receipts of at least $5.6 billion annually. The industry not only benefits the children who receive care, but also strengthens the California economy as a whole. This paper discusses the range of economic benefits that the ECE industry brings to California.

Economic Impact of Low Income Health Program Spending on Select California Counties
August 2011 by Laurel Lucia

California recently received federal approval for a Section 1115 Medicaid Demonstration Waiver which includes the Low Income Health Program (LIHP). County-based LIHPs will offer comprehensive benefits to low-income adults who are currently ineligible for Medi-Cal coverage. This report examines how the federal matching dollars brought in as a result of the county investment may serve as a stimulus to the local economies.

New Data: NLRB Process Fails to Ensure a Fair Vote
June 2011 by John Logan, Erin Johansson, and Ryan Lamare
»Press Release

This study finds that current NLRB procedures, which grant employers significant control over the timing of the election process, can prevent workers from fairly choosing whether or not to have union representation.

Living Wage Standards for Walmart Workers Would Barely Impact Shoppers, Study Finds
April 2011, by Ken Jacobs, Dave Graham-Squire and Stephanie Luce
»Press Release

This study uses the most recent data available to update the 2007 report on the impact to workers and shoppers if Walmart increased its minimum wage. It finds that a $12 per hour minimum wage would provide substantial benefits to Walmart workers in low-income families, while the costs would be dispersed in small amounts among many consumers across the income spectrum.

In the News

Workplace Rights for Domestic Employees May Expand Laurel Lucia spoke about this legislation on The California Report, on August 14.

John Logan has made lots of headlines talking about the NLRB rule changes. This one was published in The Hill, the insider newspaper from Capitol Hill: Inflatable rats and regulatory tsunamis: Just another day at the NLRB
Steven Pitts’ Black Worker report is building awareness of racial impacts of the recession. This report was published in The Huffington Post: Black Unemployment Crisis: Loss Of Government Jobs Hurts African Americans

Book Events at the Labor Center

We’ve planned a full autumn of book readings with authors writing about a variety or worker stories. All events will be held at the Labor Center, 2521 Channing Way • Berkeley and will be “catered” by Modern Times Bookstore, which will provide a selection of pertinent books and readings for purchase.

Shehzad Nadeem, author of Dead Ringers: How Outsourcing is Changing the Way Indians Understand Themselves
Wednesday, September 28, 2011, 5:30 pm

William B. Gould IV, author of Bargaining with Baseball: Labor Relations in an Age of Prosperous Turmoil
Tuesday, October 4, 2011, 5:30 pm

William M. Adler, author of The Man Who Never Died: The Life, Times, and Legacy of Joe Hill, American Labor Icon * with music by Hali Hammer! *
Wednesday, October 26, 2011, 5:30 pm

More info at



California Public Employee Relations

CPER is working on our second online-only edition (No. 203). The first made its appearance in June. The new format offers readers real-time updates on court decisions and current events, and provides a format for reader’s to share commentary.

Starting with the September issue, CPER is pleased to preview a book in progress by California Federation of Teachers Communications Director Fred Glass. His work, From Mission to Microchip: A History of the California Labor Movement, is forthcoming from Heyday Press. CPER will publish three successive chapters on the history of public sector organizing. 

Also in the next issue, an article by attorney Chris Platten (Wylie, McBride, Platten and Renner) on the hot topic of legal support for pension proposals that would reduce the accrual of pension benefits for existing employees.

And, attorney Frances Rogers (Liebert Cassidy Whitmore) answers a question that may strike a chord with many readers: “Can a public employer be held liable for negligence because the employer accidentally disclosed the names, addresses, telephone numbers, marital status, and Social Security numbers of 1,750 former employees?”

Recent developments in the next issue include coverage of new cases involving retaliation under the Fair Employment and Housing Act and the Petition Clause; the scope of a teacher’s qualified immunity to make statements in the classroom; the state of school employee layoffs and school funding; and a Southern California town that is trying to contract out half its workforce,

CPER Pocket Guide Series

CPER recently published the 20th title in its Pocket Guide Series, Pocket Guide to Workers’ Compensation, by the IRLE’s resident workers’ comp expert Juliann Sum. Also in progress are new editions of the popular Pocket Guide to the Basics of Labor Relations, Pocket Guide to the Meyers-Milias-Brown Act, and our best-seller, Pocket Guide to the Peace Officers Procedural Bill of Rights Act.

CPER Seminar Series
November 4, in Sacramento, CPER Co-Director Katherine Thomson is leading “Due Process Rules! Before, During and After Termination of Public Employees.”

CPER will have a table at the California Teachers Association Annual Convention, in Reno, October 1; at the California Employment Law Association in Monterey, October 28-29, and at CALPELRA, also in Monterey, November 28-December 1.  If you’re there as well, please stop by and say hello.


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 three new reports. CSCCE and the National Institute for Early Education Research have jointly published a NIEER Policy Brief, Degrees in Context: Asking the Right Questions about Preparing Skilled and Effective Teachers of Young Children. This Policy Brief contends that too much attention has been given to debating the baseline qualifications required of preschool teachers –AA vs. BA, and that it is just as necessary to take into account the nature of the education teachers receive en route to a degree, supports for ongoing learning, and the effects of the workplace environment on teaching practice. 

The second publication is Professional Development Needs of Directors Leading in a Mixed Service Delivery Preschool System, published in the Spring 2011 volume of Early Childhood Research & Practice. This article reports on an interview study with directors of Head Start and child care programs who are collaborating with local education authorities to provide publicly funded preschool. The article is available in both English and Spanish.

The third report studies quality rating and improvement systems (QRISs), which have increasingly become the key strategy for improving the quality of early care and education. Staff Preparation, Reward, and Support: Are Quality Rating and Improvement Systems Including All of the Key Ingredients Necessary for Change? examines the extent to which QRISs support the professional development of practitioners and include information on staff qualifications, direct compensation, and the factors related to work settings that have been linked to quality.

For more information or to access these reports, visit our website at


Center for Wage and Employment Dynamics

CWED Deputy Chair Sylvia Allegretto Joins Rep. Lynn Woolsey at North Bay Event

On August 30, 2001, CWED Deputy Chair Sylvia Allegretto joined Rep. Lynn Woolsey (D- Petaluma) in a public forum on the active role our federal government should be taking in creating local jobs and stimulating our economy.

Discussants included:
Sylvia Allegretto, Research Economist at the UC Berkeley Center on Wage and Employment Dynamics
Bill Scott, Secretary-Treasurer, Marin Building Trades Council
Ruben Perez, Business Owner, Napa Electric
Chris Snyder, District Representative, International Union of Operating Engineers Local 3
Lisa Maldonado, Executive Director, North Bay Labor Council, AFL-CIO

The Santa Rosa Press-Democrat covered the event:


Sylvia Allegretto: Recent Media Commentary

The State of Jobs on Labor Day 2011, California Progress Report

Sylvia Allegretto commented on job security on MSNBC, September 1, 2011:

Center for Work, Technology and Society

Clair Brown and Greg Linden's book about the semiconductor industry, Chips and Change (2009, MIT Press), has been released in a paperback edition with a new preface that updates the book with the industry's changes during the economic downturn.  The book traces the chip industry over more than twenty years through eight technical and competitive crises that are all still going on in some form.  The industry’s changes have in turn affected how companies find and use engineers around the world.  The book provides an introduction to an industry that, perhaps more than any other, has driven global economic growth and social change, and provides insights into how chip firms have positioned and repositioned themselves to cope with the challenges of competition on a global scale.

Institute for Research on Labor and Employment Library

Copying in the University Library is Now Scanning

The University Library has transformed its copying service into a scanning service. It has deployed book scanning equipment throughout its far-flung system, and now everyone will be scanning to a flash drive instead of copying to paper. Payment will be handled by the Cal1Card system, which, after startup complications, should be easier to use than the current copy card system. For more information, see the University Library Web at

“We Called It A Work Holiday: The 1946 Oakland General Strike: ” Going Online

Digital imaging of the Oakland Museum of California’s noted exhibit, now under the Library’s oversight, is scheduled for mid to late fall 2011. Once the imaging is complete, the Library will prepare a permanent, digital exhibit. This step will also safeguard the original exhibit pieces, which are occasionally loaned for special events.


Labor Project for Working Families

Labor Project Executive Director Receives Fellowship
Netsy Firestein, Executive Director of the Labor Project for Working Families, has received a “practitioner’s fellowship” from the Kalmanovitz Initiative for Labor and the Working Poor at Georgetown University in Washington, D.C.. The fellowship will be for a duration of three months in Fall 2011 and will allow Netsy to take time away from her regular work to conduct research on a national paid family leave campaign.

Online Engagement Efforts
The Labor Project for Working Families chairs and coordinates the California Work & Family Coalition to advocate for family-friendly workplace policies in California. In Summer 2011, the Labor Project hired an Online Engagement consultant to build the Coalition’s presence on social/new media networks like Facebook, Twitter and YouTube. The Coalition’s newly designed website also features a blog featuring posts from Labor Project staff, Coalition partners and work family advocates.  




Demography Department

Brown Bag Series
2232 Piedmont Avenue

September 14, 2011
The New Geography of Jobs, Enrico Moretti, UC Berkeley Economics


Economics Department

Economics 218, Psychology and Economics Seminar
597 Evans Hall

September 1, 2011
F402 Haas School of Business
"Learning, Persistent Overconfidence, and the Impact of Training Contracts". Joint with the Oliver Williamson Institutional Analysis Seminar. Mitchell Hoffman, Department of Economics, UC Berkeley.
Note change in date, time, and location

Economics 221, Industrial Organization Seminar
597 Evans Hall

September 20, 2011
“Disruptive Innovation, Complexity and Organizational Learning in Aircraft Production”. Jonathan S. Leonard, Haas-UC Berkeley

International House Speaker Series

September 1, 2011
Globaloney: The Dangerous Myths of Globalization, Robert Reich, Professor of Public Policy, Goldman School of Public Policy

International House, Chevron Auditorium