Subject: Studies in the News 04-41 (June 18, 2004)


CALIFORNIA RESEARCH BUREAU
CALIFORNIA STATE LIBRARY
Studies in the News:
Employment, Training, Vocational Education and Welfare to Work Supplement


Contents This Week

Introductory Material ECONOMY
   Impact of offshore IT software
EDUCATION
   WIA incentive funds
EMPLOYMENT
   The impact of guestworkers
   Availability of paid sick leave
   State tax breaks don't grow jobs
   Profile of "high road" companies
   Employment trends and minimum wage
   Job deficit in most metropolitan areas
   Hidden public costs of low-wage jobs
   NAFTA causes lost jobs, lower wages
   Efforts to reducing insurance fraud
   Workforce development system
   Young, restless and jobless
HUMAN SERVICES
   From jobs to careers
   Financial education for welfare recipients
PREVIOUSLY IN STUDIES IN THE NEWS
   Studies in the News, April 2004
   Studies in the News, May 2004
   Studies in the News, June 2004
Introduction to Studies in the News

Studies in the News (SITN) is a current compilation of policy-related items significant to the Legislature and Governor's Office. It is created weekly by the State Library's Research Bureau and State Information & Reference Center to supplement the public policy debate in California's Capitol. To help share the latest information with state employees and other interested individuals, these reading lists are now being made accessible through the State Library's website.

How to Obtain Materials Listed in SITN:

  • When available on the Internet, the URL for the full-text of each item is provided.

  • California State Employees may contact the State Information & Reference Center (916-654-0206; cslsirc@library.ca.gov) with the SITN issue number and the item number [S#].

  • All other interested individuals should contact their local library - the items may be available there, or may be borrowed by your local library on your behalf.

The following studies are currently on hand:

ECONOMY

OUTSOURCING

The Comprehensive Impact of Offshore IT Software and Services Outsourcing on the U.S. Economy and the IT Industry: Executive Summary. By Global Insight (USA), Inc. Prepared for the Information Technology Association of America. (The Association, Arlington, Virginia) 2004. 10 p.

Full Text at: www.globalinsight.com/publicDownload/genericContent/03-30-04_execsum.pdf

["While offshore IT software and services outsourcing has displaced and will continue to displace workers in IT software and services occupations, increased economic activity creates a wide range of new jobs -- both IT and non-IT. As the benefits compound over time, the U.S. economy operates more efficiently, achieves a higher level of output, creates more than twice the number of jobs than are displaced, and increases the average real wage."]

[Request #S3230]

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EDUCATION

WORKFORCE DEVELOPMENT

WIA Incentive Funds Available to 23 States. By The Federal Funds Information for States. FFIS Issue Brief 04-15. (FFIS, Washington, DC) May 18, 2004. 4 p.

["The U.S. Department of Labor, in collaboration with the Department of Education, recently announced that 23 states are eligible for $24.5 million in fiscal year 2003 Workforce Investment Act Section 503 Incentive grants. These grants reward states for successful performance in workforce and education programs in program year 2002."]

[Request #S3232]

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EMPLOYMENT

How Would Millions of Guestworkers Impact Working Americans and Americans Seeking Employment: Testimony. Presented to the House of Representatives Subcommittee on Immigration, Border Security, and Claims Committee on the Judiciary (The Committee, Washington, DC) March 24, 2004. Various pagings.

Full Text at: www.house.gov/judiciary/chishti032404.htm

["The subcommittee heard testimony from the following witnesses: Mark Krikorian, Executive Director, Center for Immigration Studies; Dr. Frank Morris, Chairman, Diversity Alliance for a Sustainable America; Roy Beck, Executive Director, NumbersUSA Education and Research Foundation; and Muzaffar Chisti, Director, Migration Policy Institute, New York University School of Law." Capitol Hill Bulletin (March 26, 2004) 4.]

[Request #S3233]

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EMPLOYEE BENEFITS

No Time to be Sick: Why Everyone Suffers When Workers Don't Have Paid Sick Leave. By Vicky Lovell, Institute for Women's Policy Research. (The Institute, Washington, DC) May 2004. 17 p.

Full Text at: www.iwpr.org/pdf/B242.pdf

["The Institute for Women's Policy Research reports that nearly half of all workers in the private sector get no paid sick time, and employers are reducing their paid sick time programs. Over 59 million workers have no sick leave. Only about one in every ten low-wage workers is allowed to use paid sick leave to stay home with sick children (11 percent), while more than four in every ten workers in the top wage quartile enjoy this benefit (43 percent)." Connect for Kids Weekly (May 10, 2004). 1.]

[Request #S3234]

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JOB CREATION

State Tax Breaks Don't Grow Jobs, Research Shows: Press Release. By the Economic Policy Institute. (The Institute, Washington, DC) March 23, 2004. 6 p.

Full Text at: www.epinet.org/newsroom/releases/2004/03/040323lynchbook.pdf

["(Robert) Lynch analyzed hundreds of research studies that examined the effectiveness of state and local tax cuts, tax incentives, and public services in creating jobs and promoting economic development. That analysis led him to conclude that there is little evidence that state and local taxation figures prominently in business location decisions."]

[Request #S3235]

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LABOR MARKET CONDITIONS

A Profile of "High Road" Companies: Leading Their Industries and Setting Higher Standards as Employers: Fact Sheet. By American Rights at Work (American Rights at Work, Washington, DC) May 23, 2004. 5 p.

Full Text at: www.americanrightsatwork.org/resources/facts/highroad.cfm

["The experience of four profitable companies that choose the 'high road' as employers -- paying good wages, recognizing employees' right to form a union, and developing a high-skilled workforce -- suggests that success and profits can be compatible with worker's rights." Moving Ideas (June 1, 2004) 1.]

[Request #S3237]

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MINIMUM WAGE

Employment and the Minimum Wage: Evidence from Recent State Labor Market Trends. By Jeff Chapman, Economic Policy Institute. EPI Briefing Paper #150. (The Institute, Washington, DC) June 1, 2004. 18 p.

Full Text at: www.epinet.org/briefingpapers/150/bp150.pdf

["This report examines the effect of state minimum wage increases on employment and concludes that these minimum wage hikes are clearly not the cause of labor market pain in the states." Moving Ideas (June 1, 2004) online.]

[Request #S3238]

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UNEMPLOYMENT STATISTICS

Three Years After Recession Starts; Most Metropolitan Areas Mired in Job Deficit. By Michael Ettlinger and Sujan Vasavada, Economic Policy Institute. Snapshot. (The Institute, Washington, DC) April 28, 2004. 2 p.

Full Text at: www.epinet.org/printer.cfm?id=1777&content_type=1&nice_name=webfeatures_snapshots_04282004se

["Nine of the nation's ten largest metropolitan areas still have fewer jobs than they did three years ago, when the recession began. The authors show in greater detail what the new metropolitan area data released by the Bureau of Labor Statistics mean." Moving Ideas (May 3, 2004) 1.]

[Request #S3240]

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WAGES

The Hidden Public Costs of Low-Wage Jobs in California. By Carol Zabin and others, Center for Labor Research and Education, University of California, Berkeley. Prepared for the National Economic Development and Law Center. (The Center, Berkeley, California) May 2004. 55 p.

Full Text at: laborcenter.berkeley.edu/livingwage/workingpoor.pdf

["Nearly half of the $21.2 billion that California pays in public assistance goes to families whose working members earn too little to be self-supporting, according to this study.... The study looks at how much public assistance goes to working families in California, examining federal and state programs such as Medi-Cal, welfare, the Earned Income Tax Credit, among others." San Francisco Chronicle (May 20, 2004) 1.]

[Request #S3199]

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The High Price of "Free Trade": NAFTA's Failure Has Cost the United States Jobs Across the Nation. By Robert E. Scott, Economic Policy Institute. Briefing Paper. No. 147. (The Institute, Washington DC) November 2003. 13 p.

Full Text at: www.epinet.org/cgi-bin/shop/shop.cgi?command=listitems&pos=0&type=group&group=12d

["NAFTA Seen Lowering Wages; Job Impact Debated Among Scholars: Researchers agree that job losses are modest compared to the overall size of the economy ... but agree that free trade accord between Canada, Mexico and the United States has resulted in lower wages for less-skilled workers.... Through the end of 2002, the United States lost 879,280 jobs because of NAFTA. Nearly four in five jobs were in manufacturing, and mostly high-wage positions." Employment and Training Reporter (January 12 2004) 280.]

[Request #S3241]

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WORKERS COMPENSATION

Workers' Compensation Fraud: Detection and Prevention Efforts Are Poorly Planned and Lack Accountability. By the California State Auditor, Bureau of State Audits (The Bureau, Sacramento, California.) April 29, 2004. 162 p.

Full Text at: www.bsa.ca.gov/bsa/pdfs/2002-018.pdf

["The 12-Year-old anti-fraud program has been collecting $30 million a year in fees from employers, but regulators can't justify the use of the funds as the 'most appropriate and effective way to combat fraud,' said State Auditor Elaine M. Howle ... Current estimates of losses from fraud range from a high of 20% of claims to a low of 1%. Los Angeles Times (April 30, 2004) A1.]

[Request #S3242]

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WORKFORCE DEVELOPMENT

Understanding California's Workforce Development System: A Comprehensive Compendium of Workforce Development Programs in California. By Barbara Baran, California Budget Project. (The Project, Sacramento, California) April 2004. 74 p.

["The report provides a comprehensive compendium of California's publicly funded workforce programs.... [It] provides a basic introduction to workforce development, the public institutions principally responsible for workforce development, and the major programs; the last three years of funding for each program, including an analysis of the difference between state and federal funding, and a description of the major federal funding streams for workforce development and their distribution at the state and federal levels."]

[Request #S3244]

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YOUTH

Still Young, Restless, and Jobless: The Growing Employment Malaise Among U.S. Teens and Young Adults. By Andrew Sum, Center for Labor Market Studies, Northeastern University. Prepared for Jobs for America's Graduates. (The Center, Boston Massachusetts) January 2004. 24 p.

Full Text at: nyec.org/CLS&JAG_report.pdf

["As the economy began to recover and overall unemployment declined in 2003, teens were left on the outside looking in.... About 5.9 million teens ages 16 through 19 were employed in 2003, an 18 percent drop from the 7.2 million employed in 2000. Making matters worse, the population of that age group has increased by 184,000 since 2003." Youth Today (May 2004) 28.]

[Request #S3245]

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HUMAN SERVICES

WELFARE TO WORK

From Jobs to Careers: How California Community College Credentials Pay Off for Welfare Participants. By Anita Mathur and others, Chancellor's Office, California Community Colleges. Prepared for the Center for Law and Social Policy. (The Center, Washington, DC) May 2004. 44 p.

Full Text at: www.clasp.org/DMS/Documents/1084454956.97/Jobs_Careers.pdf

["The report tracks the employment rates and median annual earnings of female welfare participants who exited the California community college system in 1999-2000. It shows that women receiving welfare in California who complete an Associate degree or certificate work more and earn substantially more in the two years after college than they did before college." Moving Ideas (May 5, 2004) 1.]

[Request #S3247]

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Financial Education and Asset Building Programs for Welfare Recipients and Low Income Workers: The Illinois Experience. By Dory Rand, Center on Urban and Metropolitan Policy, Brookings Institution. Local Innovations in Welfare and Work Series. (The Institution, Washington, DC) April 2004. 18 p.

Full Text at: www.brook.edu/dybdocroot/urban/pubs/20040413_doryrand.pdf

["Financial education and asset-building programs are needed and effective complements to traditional welfare, adult education, workforce development, and work support programs, providing participants with the tools needed to make sound financial decisions, participate in the mainstream financial system, and move up the economic ladder."]

[Request #S3248]

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PREVIOUSLY IN STUDIES IN THE NEWS
[This section links to items in Studies in the News since the last Employment, Training, Vocational Education and Welfare to Work Supplement.]

EMPLOYMENT

"Employment, Education, and Human Services." IN: Studies in the News, Issue 04-26 - 04-28 (April 2004).

[Includes: "Mexican-born workers risk dying in the U.S.;" "Corporate profits and labor income"; "Workers living in poverty"; "Unemployed denied aid;" and others.]

[Request #S3249]

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"Employment, Education, and Human Services." IN: Studies in the News, Issue 04-30 - 04-34 (May 2004).

[Includes: "Unemployed denied federal aid;" "Low-wage employees;" "Retiree health plans;" "Proposed TANF work requirements;" "Gender pay gap lingers;" "Guestworker programs;" "Flawed assumptions underlying guestworker programs;" "Influx of foreign workers lowers wages;" "Court rules on anti-union activity law;" "Workers' compensation fraud;" and others.]

[Request #S3250]

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"Employment, Education and Human Services." IN: Studies in the News, Issue 04-37 - 04-40 (June 2004).

[Includes: "Manufacturing and job training;" "Minimum wage increase long overdue;" "Recommendations for improving foster care;" "Audit of delinquent labor claims;" "Worker health and safety in adult film industry;" "Hidden public costs of low-wage jobs;" "Encouraging job advancement;" "Declining labor force and women;" "Welfare reform and immigrants;" "Budget threatens health and welfare programs;" and others].

[Request #S3251]

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