The New York Fed has released a Staff Report by Natalia Emanuel and Emma Harrington titled The Payoffs of Higher Pay: Labor Supply and Productivity Responses to a Voluntary Firm Minimum Wage:
What are the returns to firms of paying more? We study a Fortune 500 firm’s voluntary firm-wide $15/hour minimum wage, which affected some warehouses more than others. Using a continuous difference-in-differences design, we find that a $1/hour pay increase (5.5 percent) halves worker departures, reduces absenteeism by 18.6 percent, and increases productivity (boxes moved per hour) by 5.7 percent. These productivity gains fully defrayed increased labor costs, offsetting the firm’s incentive to mark down wages. We develop a simple model that connects efficiency-wage incentives and monopsony power, showing how these forces can counterbalance each other to keep wages closer to workers’ marginal revenues.
Yup. In most cases, sweating your labour is false economy.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1236 % | 2,496.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1236 % | 4,734.2 |
| Floater | 5.77 % | 6.03 % | 57,748 | 13.82 | 3 | 0.1236 % | 2,728.3 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0392 % | 3,677.7 |
| SplitShare | 4.75 % | 4.48 % | 82,171 | 3.03 | 5 | 0.0392 % | 4,392.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0392 % | 3,426.8 |
| Perpetual-Premium | 5.69 % | 5.61 % | 533,064 | 14.12 | 7 | 0.0627 % | 3,064.9 |
| Perpetual-Discount | 5.60 % | 5.66 % | 52,219 | 14.38 | 27 | 0.6823 % | 3,385.3 |
| FixedReset Disc | 5.93 % | 5.95 % | 111,608 | 13.76 | 28 | 0.1141 % | 3,178.0 |
| Insurance Straight | 5.45 % | 5.53 % | 67,129 | 14.53 | 22 | 0.4431 % | 3,338.8 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1141 % | 3,780.6 |
| FixedReset Prem | 5.97 % | 4.46 % | 85,282 | 2.38 | 20 | -0.0959 % | 2,656.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1141 % | 3,248.6 |
| FixedReset Ins Non | 5.29 % | 5.47 % | 74,446 | 14.39 | 14 | 0.0646 % | 3,125.9 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CU.PR.H | Perpetual-Discount | -6.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.12 Evaluated at bid price : 22.40 Bid-YTW : 5.87 % |
| FTS.PR.J | Perpetual-Discount | -2.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 21.97 Evaluated at bid price : 22.20 Bid-YTW : 5.44 % |
| PWF.PR.T | FixedReset Disc | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 23.18 Evaluated at bid price : 24.45 Bid-YTW : 5.44 % |
| GWO.PR.H | Insurance Straight | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 21.84 Evaluated at bid price : 22.08 Bid-YTW : 5.56 % |
| POW.PR.D | Perpetual-Discount | 1.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.70 Evaluated at bid price : 22.99 Bid-YTW : 5.49 % |
| MFC.PR.B | Insurance Straight | 1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.03 Evaluated at bid price : 22.26 Bid-YTW : 5.30 % |
| ENB.PF.G | FixedReset Disc | 2.13 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.30 Evaluated at bid price : 23.00 Bid-YTW : 6.19 % |
| CU.PR.F | Perpetual-Discount | 3.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 20.65 Evaluated at bid price : 20.65 Bid-YTW : 5.47 % |
| GWO.PR.Y | Insurance Straight | 4.00 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 20.80 Evaluated at bid price : 20.80 Bid-YTW : 5.49 % |
| PWF.PR.S | Perpetual-Discount | 30.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 21.42 Evaluated at bid price : 21.68 Bid-YTW : 5.57 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BN.PR.N | Perpetual-Discount | 148,900 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 20.82 Evaluated at bid price : 20.82 Bid-YTW : 5.79 % |
| ENB.PR.B | FixedReset Disc | 76,340 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 21.45 Evaluated at bid price : 21.45 Bid-YTW : 6.32 % |
| GWO.PR.T | Insurance Straight | 37,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 23.27 Evaluated at bid price : 23.55 Bid-YTW : 5.53 % |
| MFC.PR.N | FixedReset Ins Non | 32,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.89 Evaluated at bid price : 24.10 Bid-YTW : 5.42 % |
| BN.PF.E | FixedReset Disc | 27,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.33 Evaluated at bid price : 23.00 Bid-YTW : 5.91 % |
| MFC.PR.B | Insurance Straight | 16,656 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-02-12 Maturity Price : 22.03 Evaluated at bid price : 22.26 Bid-YTW : 5.30 % |
| There were 7 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| CU.PR.H | Perpetual-Discount | Quote: 22.40 – 24.40 Spot Rate : 2.0000 Average : 1.4583 YTW SCENARIO |
| BN.PF.I | FixedReset Prem | Quote: 25.50 – 26.50 Spot Rate : 1.0000 Average : 0.6050 YTW SCENARIO |
| BN.PF.E | FixedReset Disc | Quote: 23.00 – 23.95 Spot Rate : 0.9500 Average : 0.7102 YTW SCENARIO |
| FTS.PR.J | Perpetual-Discount | Quote: 22.20 – 22.70 Spot Rate : 0.5000 Average : 0.3213 YTW SCENARIO |
| GWO.PR.S | Insurance Straight | Quote: 23.85 – 24.75 Spot Rate : 0.9000 Average : 0.7348 YTW SCENARIO |
| GWO.PR.M | Insurance Straight | Quote: 25.42 – 25.92 Spot Rate : 0.5000 Average : 0.3523 YTW SCENARIO |