Search

We investigate the labor market effects of a loan guarantee program targeting French SMEs during the financial crisis. Exploiting differences in regional treatment intensity in a border discontinuity design, we uncover a central trade-off for such interventions. While the program has a positive impact on workers' employment and earnings trajectories that translates into positive aggregate employment effects, it dampens the worker reallocation toward more productive firms that happens following recessions, and particularly so for high-skill workers. This labor allocation effect is economically significant and translates into a reduction in aggregate productivity. [ABSTRACT FROM AUTHOR]

We examine the plausibility of using prejudice-based discrimination to explain the wage differences among young men and women in eleven European countries. Utilizing a sample of over 20,000 individuals and estimating a series of country-specific regression models that adjust for ability and selection bias, we find evidence that leads to a good possibility of prejudice-based discrimination in Greece, Italy, Spain, Czechia, Hungary, and the UK. In the UK, this possibility of discrimination is mitigated to an extent by gender differences in credentials. In Austria, Germany, Denmark, and Switzerland, we find no evidence for prejudice-based discrimination. Oaxaca decompositions reveal that if women's own human capital characteristics were rewarded at the same level as men's in the former (six) countries, they would expect a wage gain. [ABSTRACT FROM AUTHOR]

This study quantifies the drivers of the gender pay gap among medical doctors in the British public sector, both at the mean and across the earnings distribution. We make comparisons to private sector doctors, as well as to other public sector health professionals and find that the substantial 22% hourly gender pay gap among public sector doctors, which is predominately unexplained by personal and work-related characteristics, is far larger than in these comparator occupations. Our evidence suggests sector–occupation-specific drivers of gender pay inequality among public sector doctors, which are particularly pronounced at the top end of the wage distribution. [ABSTRACT FROM AUTHOR]

AbstractThis study aims to explore the impact of physical attractiveness on employment, with a focus on the Chinese labor market. It seeks to understand how physical appearance influences not only the likelihood of employment but also the quality of employment in terms of income, social insurance, and job satisfaction. Utilizing data from the 2020 China Family Panel Studies, this research employs multiple linear regression models to analyze the relationship between physical attractiveness and employment. The study pays particular attention to variables such as industry type, age, and education level, and considers the indirect effects of physical appearance on non-cognitive abilities like comprehension, language expression, and interpersonal skills. The results indicate that physical attractiveness significantly and positively influences the likelihood of employment, especially in the service industry. This effect varies with age and education levels. In terms of employment quality, attractive individuals are likely to experience higher income, better social insurance, and greater job satisfaction. This research contributes to the existing literature by providing empirical evidence from the Chinese context, a relatively underexplored area in this field. It offers a comprehensive view of how physical attractiveness affects both the likelihood and quality of employment, highlighting its importance in non-cognitive skill development. The study’s findings have broad implications for employees, employers, and policymakers, particularly in terms of understanding the societal and economic impacts of physical appearance. [ABSTRACT FROM AUTHOR]

Using longitudinal data of college graduates in Colombia, we estimate labor market returns to postsecondary degrees and to various skills—including literacy, numeracy, foreign language, and field-specific skills. Graduates of academic programs and schools of higher reputation obtain higher earnings relative to vocational public programs. A one standard deviation increase in each skill predicts average earnings increases of 1–3%. Returns vary along the earnings distribution, with tenure, with the degree of job specialization, and by gender. Our results imply that degrees and skills capture different human capital components that are rewarded differently in the labor market. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Historia Económica / Journal of Iberian & Latin American Economic History is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We adopt a pandemic-macroeconomic model to simulate the macroeconomic impact of COVID-19 on various occupations under both laissez-faire and government lockdown scenarios. We integrate a SIR model of virus transmission into a simplified neoclassical model and categorize occupations into two groups based on their ability to work remotely. Subsequently, we assess the shock impact of the pandemic on GDP, consumption, and working hours of flexible and rigid occupations. We find that these three variables declined during the pandemic, yet the consumption varied among individuals with different health status. The labour market experienced a recession, with workers in flexible occupations experiencing a relatively milder impact compared to those in rigid occupations. A larger proportion of remote work mitigated the recessionary effects, although it accentuated the disparities between occupations' income and working hours. The implementation of lockdown policies detrimentally affects welfare, similar to the pandemic itself, but the impact on flexible and rigid occupations differs from that in a laissez-faire scenario. [ABSTRACT FROM AUTHOR]

Purpose: This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two sectors varies. Design/methodology/approach: The authors use data from the Ghana Living Standards Survey 6 (GLSS 6, 2012/2013) and Ghana Labour Force Survey (GLFS, 2015). In terms of estimation technique, the authors employ the Blinder–Oaxaca decomposition technique to estimate union wage effect in public and private sectors, respectively. Findings: The findings indicate that union wage effect in the public sector is positive and higher relative to that of the private sector. Practical implications: The findings imply that strict enforcement of Section 82 of Labour Act 2003 (Act 651) will curb the political influence of public sector unions over their employer (Government). Originality/value: This research paper has not been presented to any journal for publication and it is the authors' original work. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0045 [ABSTRACT FROM AUTHOR]

This study estimates union wage premiums and analyzes the influence of trade unions on the wage gap between rural migrants and local urban workers in China by employing the Blinder–Oaxaca decomposition method based on national longitudinal survey data from the China Family Panel Studies (2010–2018). The results indicate that the union wage premium among rural migrant workers is greater than that among local urban workers. The disparity in union density widens the wage gap, whereas the difference in union wage premiums narrows the wage gap between the two groups. Moreover, the contribution rate of the former is greater than that of the latter. These results suggest that expanding union coverage among rural migrant workers could effectively contribute to reducing the wage gap.

This paper examines how employee earnings respond to a one-time cash flow shock in the form of a government R&D grant. In a regression discontinuity design, we find that the grant immediately increases average annual employee-level earnings by 2.9 |$\%$|⁠. This benefit accrues only to incumbent employees and rises with job tenure. The grant also affects firm growth, but the initial wage patterns do not appear to reflect growth or productivity. Instead, the evidence supports implicit equity financing within the firm, where employees initially accept lower wages from financially constrained firms and earn more when the firm has ability to pay. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Widening income inequality is a serious social concern in many countries. We examine the causal effect of a negative demand shock on executive compensation and worker wages using a quasi-natural experiment, considering Japanese firms that experienced a sudden and substantial export decline following the global financial crisis in the late 2000s. Worker wages tended to decline significantly more relative to executive compensation after the crisis in firms depending more on exports, causing a wider pay differential. We establish the robustness of our difference-in-difference results by considering selection into exporters, excluding sporadic exporters, and controlling for foreign ownership or liquidity. [ABSTRACT FROM AUTHOR]

We extend Stiglitz (J Public Econ, 17, 213–240,1982) to a dynamic and stochastic optimal taxation model, while assessing the effects of exogenous wage regulations. We show that when wage regulations are imposed, consumption inequality rises more than when they are removed. The results lead to an important policy implication that in the face of exogenous wage regulations, the social planner who can design optimal tax schedule prefers to widen the consumption inequality. From this perspective, the drive to enhance production efficiency outweighs the motivation for redistribution. A conventional wisdom that full employment commitment and minimum wage legislation should serve as a buffer for the minority may not be taken for granted. In the qualitative analysis, we find that as wage regulations tighten, the lower bound of the marginal tax rate on capital rises. Our quantitative result validates that, showing that the marginal tax rate on capital increases to varying degrees in response to wage requirements of varying tightness. [ABSTRACT FROM AUTHOR]

This article reassesses the conventional wisdom that public-sector jobs have worse pay but better amenities than equivalent private-sector jobs, using data from 22 European countries and the USA. Earnings gaps are shown to be heterogeneous across countries—public sector work carries a premium in Europe but a penalty in the USA. However, whereas European public-sector workers report better job amenities—better job security and work–life balance—than their private-sector counterparts, there are no public–private amenity differentials for US workers. Public-sector work also has fewer pay-for-performance schemes. Finally, the public sector does not seem to ensure a fairer work environment, compared to the private sector, in terms of workplace discrimination and harassment. These stylized facts inform the external validity of extrapolating individual case studies to different contexts. [ABSTRACT FROM AUTHOR]

Studies of wage inequality concentrate on private wages. Public sector wages are typically assumed to contribute to the overall wage equality. We challenge this understanding in an analysis of the relative skill premium in the public versus private sectors. The analysis of heterogeneity across gender and geography is based on rich register data for Norway. The raw data confirm the relative wage compression in the public sector. However, this is a male phenomenon and only prevalent in large cities when unobserved worker and firm characteristics are taken into account. With identification based on shifters between private and public sectors and movers between city-size groups, wage setting for female workers in the public sector increases wage inequality in all regions, particularly in the periphery. The result is consistent with policies promoting the recruitment of high-educated female workers and the expansion of public services in the periphery counterbalancing the desired equality effect of public wages. [ABSTRACT FROM AUTHOR]

This article shows that inherited cultural diversity at the regional level generates a positive wage externality. We use administrative panel data on formally employed individuals in Rio Grande do Sul in Brazil from 2008 to 2013 and apply machine learning to infer the ancestry of workers from their surnames. We distinguish inherited diversity from birthplace diversity and use the plausibly exogenous location of former colonies to build an instrumental variable. The positive wage externality of inherited diversity withstands alternative explanations such as institutional quality, municipality size, human capital externalities, individual productivity differences, and sorting of workers. [ABSTRACT FROM AUTHOR]

We examine how the gender of business owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is—starting from a gender pay gap of 11 to 12%—two to three percentage points lower for hourly wages in female-owned firms than in male-owned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role in the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses with male ownership maintain a gender pay gap of around 10% also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others—firm managers—determine wages and no differences in the pay gap are observed between male- and female-owned firms. [ABSTRACT FROM AUTHOR]

This study examines the heterogeneous impacts of minimum wages, which could affect low-income workers’ earnings and employment opportunities, on crime rates across neighboring communities. Using geo-tagged reported crime incident data from 18 major U.S. cities, we find that minimum wage increases reduce violent crime rates notably more in low-income communities than in high-income ones. On average, a one-dollar real minimum wage increase narrows the disparity in quarterly violent crime rates between low- and high-income communities by 12%. The impact varies considerably across different types of cities. The income effect resulting from raising the minimum wage is the main contributing factor. [ABSTRACT FROM AUTHOR]

This paper studies the methods used by Gulf Cooperation Council (GCC) nations for surveillance and control of the migrant population on their land, its main argument being—the Kafala system as practised in the GCC nations, for organising the guest workers, is more than just an arrangement handling migration but rather is a technology of migrant control in itself wherein citizens are tasked with overseeing and managing the presence and actions of foreigners within the national borders, a responsibility typically held by the state-resulting in partial privatisation of control over migration. For this, they have refurbished the age-old Kafala to craft it into a cutting-edge technology of migrant control and surveillance by linking every migrant to his citizen–sponsor, who, on behalf of the state, wields complete control on the mobility, social life and employment of the Makful (migrant). The paper, through the concepts of porous and indeterminate borders, tries to show how borders do not "exclude" but there is "differential inclusion" of the migrants, which is no less violent than exclusionary measures, wherein borders exist between the male migrant and the female, between the skilled migrant and the unskilled and between the migrant from South–East Asia and the expats from Organisation for Economic Co-operation and Development (OECD) countries—by the use of tactics such as ethnic stereotyping, structural violence, racial segregation, etc.; for example-different kinds of visas provided to them based on their skills, sponsors retaining workers' passport controlling their mobility, regulating their salary, their forced confinement and restrictions on their channels of communication thus, mapping them in a system of "structural dependence". The study seeks to question the sponsorship system within the broader context of surveillance techniques that regulate migrant populations. By juxtaposing it with conventional surveillance measures such as CCTV cameras and GPS-based controls, it contends that the sponsorship system operates as a form of control that is both coercive and extensive, effectively tethering individuals to their sponsors who wield authority over all facets of their lives. [ABSTRACT FROM AUTHOR]

There was a strong push from employers to decentralize wage setting in Finland in the early 2000s. We analyze the incidence of decentralization and its effect on the level and dispersion of wages by using nationally representative panel data. The results show that wage setting was more likely decentralized in collective agreements where a high share of employees worked in manufacturing or real estate industries than in other industries, such as in education and human health and social work activities. Decentralization was, for the most part, quite short-lived. Using recent difference-in-differences methods that allow for heterogeneous treatment effects and differences in the timing of treatment, we show that decentralization had modest positive effects on the level and dispersion of wages in manufacturing. [ABSTRACT FROM AUTHOR]

AbstractThis study aims at analyzing the gender gap in salaries observed in Spanish public universities. It focuses on the glass ceiling problem and quantifies its importance in the gender earnings gap. This article shows that most of the gender earnings gap observed among the faculty of the University of Murcia is due to a glass ceiling problem in accessing the rank of Full Professor, and it includes a measure of research productivity in the analysis. Despite increases in the number of women promoted to the level of Full Professor has increased in recent years, women still comprise less than 30% of the total faculty at this academic rank. The second most important variable that explains most of the earnings gap is research productivity.

We study how technological change affects between‐ and within‐education‐group inequality in the United States. We develop a model with heterogeneous workers and firms in which the demand for skills is characterized by firms' recruiting behavior. We use the model to quantify the relative contribution of two types of technological change that affect the relative demand for skilled labor: technological change in firm‐specific productivity and technological change in labor productivity. We find that technological change in labor productivity, in the form of higher returns to skill in production, is the main driver of the increase in between‐ and within‐group inequality. Technological change in firm productivity, in the form of higher firm productivity dispersion, plays a less important role in explaining rising inequality, except for the increase in within‐group inequality for workers without a college degree. [ABSTRACT FROM AUTHOR]

Using exogenous shocks on the ability to issue seasoned equity offerings (SEOs), we show SEOs lead to a higher employee skill composition, that is, a lower (higher) proportion of low (high) skilled workers. The decrease in low-skilled workers exceeds the increase in high-skilled workers, resulting in reduced employment at the firm level. These effects are more significant when firms invest more in technology following SEOs and face greater financial constraints before SEOs, suggesting that SEOs relieve budget constraints on technology investments. These findings demonstrate that while external equity financing helps upgrade technology to improve productivity, it has a dark side for low-skilled workers. [ABSTRACT FROM AUTHOR]

The US Securities and Exchange Commission's mandated CEO pay ratio is a simple, but salient, metric that could resonate with employees given it focuses on their compensation. Reporting a relatively or surprisingly high ratio reduces employee perceptions of their pay, views of the CEO, and hampers productivity growth. Employee pay satisfaction drops after disclosing a high ratio even if their wages were previously disclosed and when the pay ratio disclosure adds little new information. Disclosures by firms with a high ratio contain more discretionary language to explain the ratio or portray employee relations positively and are more likely to be covered by the media. However, neither information source substantially alters the employee response to a salient ratio. Our work illustrates that requiring firms to disclose a salient metric can have unintended consequences on employees and suggests caution in requiring firms to report simplified Environmental, Social, and Governance (ESG) metrics that are inherently multifaceted. [ABSTRACT FROM AUTHOR]

The students’ socioeconomic background effect on the educational outcomes makes it more difficult to find real equality of opportunity within the educational system. In this paper, we analyse the relationship of career guidance at school with cognitive skills, and also with expectations and motivation for a sample of more than 188,000 15-year-old students in 29 different countries, using the OECD PISA 2018 data. We apply a propensity score matching procedure with a novel multilevel second stage. We provide novel evidence of the positive influence of career guidance on the variables of interest, but only for disadvantaged students. [ABSTRACT FROM AUTHOR]

Theoretically and numerically, this paper attempts to examine the macroeconomic effects of corruption by using the two-country directed technical change model. At a single-country level, an increase in corruption levels in one country leads to an intra-country decrease in the demand for labor and wages and a permanent slowdown of technological-knowledge progress and economic growth. At the inter-country level, a country-specific increase in corruption enlarges inter-country wage and technological-knowledge gaps. Overall, higher corruption levels in one country are detrimental to global economic growth. Through calibration, it is shown that when the differences between the corruption of non-corrupt and corrupt countries increase: (1) economic growth is mainly stimulated in the corrupt countries India, Mexico, and Brazil; (2) the lowest wage inequality compared to non-corrupt countries is observed in the corrupt countries Greece, Portugal, and Spain. [ABSTRACT FROM AUTHOR]

Copyright of AStA Wirtschafts- und Sozialstatistisches Archiv is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Income inequality is a distributional phenomenon. This paper examines the impact of U.S. governor's party allegiance (Republican vs Democrat) on ethnic wage gap. A descriptive analysis of the distribution of yearly earnings of Whites and Blacks reveals a divergence in their respective shapes over time suggesting that aggregate analysis may mask important heterogeneous effects. This motivates a granular estimation of the comparative causal effect of governors' party affiliation on labor market outcomes. This paper uses a regression discontinuity design (RDD) based on marginal electoral victories and samples of quantiles groups by wage and hours worked. Overall, the distributional causal estimations show that the vast majority of subgroups of Black workers earnings are not affected by democrat governors' policies, suggesting the possible existence of structural factors in the labor markets that contribute to create and keep a wage trap and/or hour worked trap for most of the subgroups of Black workers. Democrat governors increase the number of hours worked of Black workers at the highest quartiles of earnings. A bivariate quantiles groups analysis shows that democrats decrease the total hours worked for Black workers who have the largest number of hours worked and earn the least. Black workers earnings more and working fewer hours than half of the sample see their number of hours worked increase under a democrat governor. [ABSTRACT FROM AUTHOR]