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13 important features of the labor demand faced by workers are set in the industry of employment rather than the firm. Beyond FDI exposure,perceptions of economic insecurity may also be shaped by a number of characteristics of individuals and the industries in which they are employed.Accordingly,for our main analyses we constructed four individual-level and two industry-level variables.The variable Income measures annual household income in thousands of U.K.pounds.Union equals one if the individual belongs to a workplace union and zero if not.Education is a categorical variable ranging from one to four,with higher values for more educational attainment.0 The variable Age equals the respondent's age in years at the time of the survey.Manufacturing is an indicator variable equal to one if the respondent's industry of employment is in the manufacturing sector and equal to zero otherwise.Finally,Sector Unemployment measures the share of workers unemployed in each respondent's industry of work. 8Our focus on industries as a relevant aggregate for labor-market effects is also consistent with many empirical findings in the labor-economics literature.For example,a common finding in studies of profit-sharing is that wage-bargaining keys off of industry profits above and beyond firm considerations.Of course,over longer time horizons than we consider in this paper, workers could be assumed to be facing an economy-wide labor demand curve. 9 Annual household income is a variable calculated by the BHPS to include income from all sources in the twelve months prior to the September of the survey year,as virtually all of the fieldwork for each survey year is done from September to December. 10 For example,category one indicates no qualifications or still in school and no qualifications, while category four includes teaching qualifications,first degree,or higher degree. 1 These data were obtained directly from the ONS and are based on its Labour Force Survey.13 important features of the labor demand faced by workers are set in the industry of employment rather than the firm.8 Beyond FDI exposure, perceptions of economic insecurity may also be shaped by a number of characteristics of individuals and the industries in which they are employed. Accordingly, for our main analyses we constructed four individual-level and two industry-level variables. The variable Income measures annual household income in thousands of U.K. pounds.9 Union equals one if the individual belongs to a workplace union and zero if not. Education is a categorical variable ranging from one to four, with higher values for more educational attainment.10 The variable Age equals the respondent’s age in years at the time of the survey. Manufacturing is an indicator variable equal to one if the respondent’s industry of employment is in the manufacturing sector and equal to zero otherwise. Finally, Sector Unemployment measures the share of workers unemployed in each respondent’s industry of work.11 8 Our focus on industries as a relevant aggregate for labor-market effects is also consistent with many empirical findings in the labor-economics literature. For example, a common finding in studies of profit-sharing is that wage-bargaining keys off of industry profits above and beyond firm considerations. Of course, over longer time horizons than we consider in this paper, workers could be assumed to be facing an economy-wide labor demand curve. 9 Annual household income is a variable calculated by the BHPS to include income from all sources in the twelve months prior to the September of the survey year, as virtually all of the fieldwork for each survey year is done from September to December. 10 For example, category one indicates no qualifications or still in school and no qualifications, while category four includes teaching qualifications, first degree, or higher degree. 11 These data were obtained directly from the ONS and are based on its Labour Force Survey
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