Subject: Studies in the News 04-51 (July 29, 2004)

Studies in the News:
Employment, Training, Vocational Education and Welfare to Work Supplement

Contents This Week

Introductory Material

   Outsourcing of government contracts
   Outsourcing's toll on white collar workers
   California's state workforce
   High-tech exports from China erodes U.S. employment
   Impact of immigrants on the U.S. workforce
   Assessing the jobless recovery
   Accountability in pubic management
   Minimum wage increases
   Minimum wage and self-sufficiency
   California's unemployment insurance
   Decrease in employment rates among single mothers
   Social Security outlook
   Minimizing improper TANF payments
   Studies in the News, June 2004
   Studies in the News, July 2004
Introduction to Studies in the News

Studies in the News is a very current compilation of items significant to the Legislature and Governor's Office. It is created weekly by the State Library's Research Bureau to supplement the public policy debate in California’s Capitol. To help share the latest information with state policymakers, these reading lists are now being made accessible through the State Library’s website. This week's list of current articles in various public policy areas is presented below.

Service to State Employees:

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

  • Items in the State Library collection can be checked out to state officials and staff.

  • Access to all materials listed will be provided by the State Information Reference Center, either by e-mail to or by calling 654-0261.

The following studies are currently on hand:



Your Tax Dollars at Work ... Offshore: How Foreign Outsourcing Firms Are Capturing State Government Contracts. By Philip Mattera, Corporate Research Project, Good Jobs First, and others. Prepared for Washtech. (Good Jobs First, Washington, DC) July 2004. 39 p.

Full Text at:

[The practice by state agencies of sending work overseas has proliferated despite efforts in many legislatures to impose restrictions on doing so .... In California, at least 11 companies specializing in 'offshore' contracting are on the list of state government vendors." Los Angeles Times (July 15, 2004) 1.]

[Request #S3529]

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"Profits vs. Jobs: As Outsourcing Toll Mounts Among White-collar Workers, Complex Economic Battle Lines Form." By Matthew Grimm IN: American Demographics, vol. 26, no. 5 (June 2004) pp. 42 - 45.

["Outsourcing has sparked complex lines of debate, but simply, outsourcing's causes and effects pit the interests of a purist orthodoxy of 'free trade' against champions of the 'living wage.'"]

[Request #S3530]

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Professors and Prison Guards: An Overview of California's State Workforce. By the California Budget Project. Budget Backgrounders: Making Dollars Make Sense. (The Project, Sacramento, California) June 2004. 24 p.

Full Text at:

["This Budget Backgrounder examines the distribution of state employment among agencies and departments and looks at the major changes that have taken place since the early 1980s. It also examines whether California's state employment is high relative to the governments of other states and whether it has grown disproportionately."]

[Request #S3531]

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Soaring Increase in High-tech Exports From China Erodes U.S. Employment. By the Economic Policy Institute. (The Institute, Washington, DC) March 29, 2004. 2 p.

Full Text at:

["Free trade agreements, in theory, were supposed to benefit the U.S. by increasing production here of high-tech goods, while moving production of low-tech goods such as textiles and clothing to low-wage countries. That theory has just collided with reality in China." Moving Ideas (March 30, 2004) 1.]

[Request #S3532]

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Increasing the Supply of Labor Through Immigration: Measuring the Impact on Native-born Workers. By George J. Borjas, Center for Immigration Studies. (The Center, Washington, DC) 2004. 13 p.

Full Text at:

["The presence of immigrants in the American workforce has pushed wages down for U.S.-born workers, particularly those without a high school education, according to a recent study by a Harvard economist." San Francisco Chronicle (May 4, 2004) 1.]

[Request #S3533]

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"Assessing the Jobless Recovery." By Daniel Aaronson and others. IN: Economic Perspectives, vol. 28, no. 2 (Second Quarter 2004) pp. 2 - 20.

Full Text at:

["This article reviews trends in employment growth during the recent recovery, including new evidence that much of the increase in self-employment since the beginning of the recession is likely a reflection of the weak labor market conditions of the last three years. The authors also offer thoughts on the strengths and weaknesses of several explanations for the disappointing employment growth of the last few years."]

[Request #S3534]

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Inclusive Management: Building Relationships with the Public. By Martha Feldman, University of California, Irvine, and Anne Khademian, Virginia Tech. Prepared for the Center for the Study of Democracy, University of California, Irvine. (The Center, Irvine, California) 2004. 23 p.

Full Text at:

["The important dimensions of democratic governance -- direct accountability to elected officials, the exercise of professional judgment, and direct public participation -- are not mutually exclusive. This paper develops an alternative model of public management, 'inclusive management,' that demonstrates all three concerns."]

[Request #S3535]

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Minimum Wage Increases Boost the Earnings of Low-wage California Workers. By the California Budget Project. Budget Brief. (The Project, Sacramento, California) June 2004. 4 p.

Full Text at:

["The weight of the evidence supports three main points about the minimum wage and California workers: California's current minimum wage is inadequate to support a single adult, much less a family.... Moderately increasing in the minimum wage has been an effective tool for raising the earnings of the state's low-wage workers.... Moderate minimum wage increases do not appear to be associated with job loss in industries that employ large numbers of low-wage workers."]

[Request #S3536]

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Coming Up Short: A Comparison of Wages and Work Supports in 10 American Communities. By Donna R. Lenhof, General Counsel of the National Partnership for Women and Families. Prepared for Wider Opportunities for Women (Wider Opportunities for Women, Washington, DC) 2004. 8 p.

Full Text at:

["A single parent with two children living in the Bay Area would need to work at least three minimum wage jobs to care for their family's basic needs, while nationwide the cost of living for many is so high that government subsidies are essential for living, according to a report." San Francisco Chronicle (July 23, 2004) 1.]

[Request #S3537]

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Building a Sound Foundation for California's Unemployment Insurance System. By Jean Ross and Matthew Mitchell, the California Budget Project. (The Project, Sacramento, California) 2004. 20 p.

Full Text at:

["This report finds that the current financing crisis predates the state's 2001 unemployment insurance (UI) benefit increase, which moved California from a low to a moderate benefit state.... The report also finds that the structure of California's UI system disadvantages some businesses, industries, and some workers.... To address these problems, this report [makes] recommendations to policymakers."]

[Request #S3538]

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Employment Rates for Single Mothers Fell Substantially During Recent Period of Labor Market Weakness. By Arloc Sherman and others. Center on Budget and Policy Priorities. (The Center, Washington, DC) June 22, 2004. 10 p.

Full Text at:

["It is widely known that the proportion of single mothers who were employed increased substantially in the mid -- and late 1990's. It is less well known, however, that during the last few years of labor market weakness, the proportion of single mothers who are employed has fallen. The employment rate among single mothers fell from 73.0 percent in 2000 to 69.8 percent in 2003 -- a larger decline than among other parents or the population overall."]

[Request #S3539]

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The Outlook for Social Security. By Noah Meyerson and others, Congressional Budget Office. A CBO Study. (The Office, Washington, DC) June 2004. 49 p.

["This report presents CBO's outlook for Social Security over the next 100 years under current law. Projections of various measures of Social Security's finances all show that outlays will continually grow faster than revenues, resulting in significant annual deficits in the system. Projections of benefit levels indicate that future generations will receive higher retirement benefits than current beneficiaries do, even after adjustment for inflation."]

Full text at:

[Request #S3540]

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TANF and Child Care Programs: HHS Lacks Adequate Information to Assess Risk and Assist States in Managing Improper Payments. By the U.S. General Accounting Office. GAO-04-723. (The Office, Washington, DC) June 2004. 72 p.

Full Text at:

["The GAO looked at (1) what selected states have done to manage improper payments in TANF and CCDF and (2) what HHS has done to assess risk and assist states in managing improper payments in these programs."]

[Request #S3541]

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


"Employment, Education, and Human Services." IN: Studies in the News, Issue 04-40 - 04-45 (June 2004).

[Includes: "Audit of delinquent labor claims;" "Declining labor force and women"; "Worker health and safety in adult film industry;" "Hidden public costs of low-wage jobs"; "Encouraging job advancement;" "Welfare reform and immigrants;" "Court upholds living wage;" and others.]

[Request #S3542]

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"Employment, Education, and Human Services." IN: Studies in the News, Issue 04-49 (July 2004).

[Includes: "Overtime protection rules;" "California job market picking up;" "The state of working America;" "Education and economic development;" and others.]

[Request #S3543]

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