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Book part
Publication date: 25 February 2016

Elena Crivellaro

While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received…

Abstract

While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received little attention. This paper investigates the causes of the evolution of the college wage premium in 12 European countries from 1994 to 2009, assessing the relevance of the supply factor as a determinant of the college wage premium. I use cross-country variation in relative supply, demand, and labour market institutions to examine their effects on the trend in wage inequality. I address possible concerns of endogeneity of the relative supply using an IV strategy exploiting the differential legislations of university autonomy and their variations over time. Results show that the strong increase in the relative supply that European countries have experienced has decreased the college wage premium. The most relevant institution is the minimun wage, which significantly decreases college wage premium.

Details

Inequality: Causes and Consequences
Type: Book
ISBN: 978-1-78560-810-0

Keywords

Article
Publication date: 16 June 2021

Cemil Ciftci and Hakan Ulucan

This study aims to analyze the wage differentials of the majors in college education in Turkey, which is a country implementing an ongoing expansion in college education…

Abstract

Purpose

This study aims to analyze the wage differentials of the majors in college education in Turkey, which is a country implementing an ongoing expansion in college education in recent years.

Design/methodology/approach

The study implements Mincreian wage regression using ordinary least squares, Heckman two-step estimation and quantile regression with sample selection correction by using household labor force surveys of TurkStat from the years 2014–2017.

Findings

The findings indicate one of the highest heterogeneity, close to 0.50 log points, between majors in the literature. The within-heterogeneity created by majors is highest among the graduates of social-behavioral sciences, law, biology, physics, mathematics, statistics, computer, engineering and manufacturing, as shown by a 90–10 difference, which is almost 700% for some of these majors. This study shows that the natural science and technical majors that are expected to be more productive and to be paid more fall behind in the wage distribution.

Research limitations/implications

Estimation results show that natural science majors, except for subjects allied to medicine and engineering, are paid lower than law and service-sector-related majors. This indicates that the predictions of the skill-biased technical change hypothesis are not valid in the wage profiles in Turkey and that some majors supply more than the sectoral needs. This casts doubts on the effectiveness of the ongoing higher education expansion process of the country.

Originality/value

This study contributes to the literature on wage differentials of college majors, an area with limited studies. This is the first study analyzing wage differentials of the field of studies by correcting sample selection bias for the Turkish case.

Details

International Journal of Development Issues, vol. 20 no. 3
Type: Research Article
ISSN: 1446-8956

Keywords

Book part
Publication date: 9 September 2020

Shih-Yung Chiu

This study aims to examine the effects of participating in physical activities on female college graduates' starting salaries. We used an instrumental variable (IV…

Abstract

This study aims to examine the effects of participating in physical activities on female college graduates' starting salaries. We used an instrumental variable (IV) approach to address the possible endogeneity problem. By using the Taiwan Higher Education Dataset, we discovered that participating in physical activities during college increased an individual's earnings by 3.06%. The significant positive effect of physical activity on salary demonstrated in this study is consistent with that in other relevant studies. This study also discovered that both the intensity and the persistence of participation in physical activities affected salary outcomes. Individuals earned 0.17%–2.41% more if they exercised for an additional hour per week, suggesting the importance of the intensity of participation in physical activities. In addition, persistent participation in physical activities was associated with a 3.08% higher salary.

Book part
Publication date: 14 July 2006

Edward N. Wolff

Inequality in the distribution of family income in the U.S., which had remained virtually unchanged since the end of World War II until 1968, has increased sharply since…

Abstract

Inequality in the distribution of family income in the U.S., which had remained virtually unchanged since the end of World War II until 1968, has increased sharply since then. In contrast, schooling and skill inequality has declined rather steadily over the postwar period. Another notable change over the past 30 years or so has been the widespread diffusion of computers. Using aggregate time-series data for the 1947–2000 period, I find that the largest effects on inequality come from office, computing and accounting equipment (OCA) investment, which accounted for about half of the rise in inequality between 1968 and 2000. The unionization rate is second in importance, and its decline over this period explains about 40 percent of the increase in inequality. The decline in the dispersion of schooling, on the other hand, plays almost no role in explaining the rise in inequality. On the basis of pooled time series, industry regressions for the 1970–2000 period, I also find that investment in OCA is positively related to changes in skill inequality, while changes in the unionization rate are negatively related.

Details

Dynamics of Inequality and Poverty
Type: Book
ISBN: 978-0-76231-350-1

Book part
Publication date: 14 August 2015

Sarah Kroeger

This paper uses data from the 1979 and 1997 National Longitudinal Surveys of Youth to estimate the changing returns to cognitive and non-cognitive skills with respect to…

Abstract

This paper uses data from the 1979 and 1997 National Longitudinal Surveys of Youth to estimate the changing returns to cognitive and non-cognitive skills with respect to college completion, and quantifies the extent to which gender differences in these skills are driving the college gender gap. The use of two distinct college graduation cohorts allows a dynamic analysis of the widening female advantage in college graduation. I decompose the increase in the college gender gap into three pertinent categories of measurable attributes: family background, cognitive skills, and non-cognitive skills (captured by school suspensions, behavioral problems, and legal infractions). A second decomposition is applied to the change in the gap between the two periods. The results show that roughly half of the observed college graduation gender gap in the NLSY97 is due to female advantages in observable characteristics, and roughly half is “unexplained”: due to gender differences in the coefficients. With respect to the change in the gap, approximately 29% of the difference in differences is the “explained” component, attributed to changes in the relative characteristics of men and women. In particular, declining non-cognitive skills in men are associated with about 14% of the increase in the gender gap.

Details

Gender in the Labor Market
Type: Book
ISBN: 978-1-78560-141-5

Keywords

Article
Publication date: 7 August 2018

Merita Zulfiu Alili and Nick Adnett

The last two decades have been characterised by a rise in income and wage inequality in a wide range of countries, including European transition countries. The rise in…

Abstract

Purpose

The last two decades have been characterised by a rise in income and wage inequality in a wide range of countries, including European transition countries. The rise in globalisation is one major factor explaining this increasing wage inequality. International trade and FDI have increased significantly since the beginning of transition and the purpose of this paper is to focus on whether FDI plays an important role in explaining the pattern of wage inequality in selected transition countries.

Design/methodology/approach

A cross-country empirical investigation has been conducted using two alternative measures of wage inequality: the Gini coefficient and the Theil index. Several model specifications and estimation strategies have been employed to obtain consistent estimates and to check for the robustness of the results.

Findings

The results indicate that a rising share of inward FDI in gross domestic product (GDP) increased wage inequality in transition economies, though its overall effect was relatively small. Considering the long run, there is no clear evidence of a concave relationship between FDI and wage inequality, which may be a consequence of the relatively low levels of FDI in many transition countries.

Practical implications

Inwards FDI has made a small contribution to increasing wage inequality in European transition economies. However, its overall beneficial effects on labour markets in these countries suggest that rather than restricting FDI governments should target increasing the supply of skilled labour.

Originality/value

This new empirical evidence supports the hypothesis that an increased inward FDI stock as a share of GDP increases wage inequality in transition economies, however, this relationship is a complex one. Differences in average wages, wage differentials, employment shares of skilled workers and relative size of the foreign-owned sector are all likely to be important for the behaviour of wage inequality.

Details

International Journal of Social Economics, vol. 45 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 July 2022

Paulina Hojda, Sylwia Roszkowska and Mariusz Trojak

The study aims to examine the factors that determine the success of graduates in the labour market. This success is measured in several ways, namely, above-average wages

Abstract

Purpose

The study aims to examine the factors that determine the success of graduates in the labour market. This success is measured in several ways, namely, above-average wages in the economy, employment in accordance with the field of study and job satisfaction. The research explores the employment outcomes of graduates from Jagiellonian University, which is the oldest and one of the best in Poland. Not only does the analysis focus on degree-related predictors such as discipline or faculty, but it is also extended to include activities undertaken during studies and family background.

Design/methodology/approach

The analysis is based on data collected in the graduates' career survey, which is conducted six months after graduation. For this article, a database of over 6,000 graduates from four subsequent editions of the survey was compiled. In order to identify the predictors of graduates' success, a logistic regression model was applied.

Findings

The study reveals that graduates' success in the labour market is influenced not only by their discipline, but also by the activities undertaken during their studies, the type of studies and demographic features. Studies in natural sciences give chance for higher earnings, job matching and satisfaction. The humanities and social sciences increase only graduates’ group satisfaction. The impact of activities during studies is diversified – those matched to studies increase the job matching and those unmatched lower the earnings, job matching and satisfaction. Parents' level of education resulted in salary increase. The results also confirm the premises of behavioural theory.

Research limitations/implications

Firstly, the main research limitation is that data of one particular university's graduates are used, so the results should be interpreted in the context of Poland only. Secondly, the authors propose a precise concept of success; however, it could be refined in any future study. This limitation could be mitigated by the flexibility of the model, which guarantees that other predictors of success could be involved. Furthermore, the article was based on data collected before the COVID-19 pandemic, when the labour market was completely different, so it also could be revised now.

Practical implications

The results of the analysis can be used when preparing the University’s educational offer. Since various predictors are implemented in the model, the information could be useful not only for future students, but also for current students, so they can make a more data-driven decision about their future careers. Additionally, University careers’ advisors are provided with knowledge on the determinants of graduates' success. Taking a broader view, the research findings are also informative for labour market institutions.

Originality/value

The paper offers an advanced analysis in a field that is under-researched in many transition countries, including Poland, i.e. graduates' entry into the workplace. Although the study provides insight into the factors that determine the labour market success of one particular university's graduates, this modelling can be applied to the empirical data of another higher education institution’s (HEI's) graduates.

Details

Education + Training, vol. 64 no. 5
Type: Research Article
ISSN: 0040-0912

Keywords

Content available
Book part
Publication date: 25 February 2016

Abstract

Details

Inequality: Causes and Consequences
Type: Book
ISBN: 978-1-78560-810-0

Article
Publication date: 9 January 2017

David B. Yerger

The purpose of this paper is to investigate linkages in US labor market between importance of specific skills, education, or training requirements, and private average…

Abstract

Purpose

The purpose of this paper is to investigate linkages in US labor market between importance of specific skills, education, or training requirements, and private average salary for occupations not characterized as requiring a bachelor’s degree or higher.

Design/methodology/approach

Data set constructed that matches 474 less than bachelor’s occupations to private average salary, education, or training requirements category, and 35 specific skills. Statistical and regression analysis has been done to assess linkages between these variables.

Findings

Highest returns associated with cognitive skills, quantitative skills, and other core academic basic skills set followed by traditional blue-collar technical skills. Interpersonal skills and related social skills set exhibited weak, and sometimes negative, association with private average salary by occupation.

Research limitations/implications

Study of only US labor market at single point of time, findings may not generalize to either non US markets or occupations requiring bachelor’s degree or higher.

Practical implications

Workers in the less than bachelor’s labor market have greater upside salary potential if they obtain postsecondary certificates or associates’ degrees and target occupations placing a greater importance on cognitive skills, quantitative skills, and core academic basic skills than if they target traditional blue-collar technical skill occupations.

Social implications

Social policies to enhance earnings for workers lacking bachelor’s degrees must target improving core generic transferable academic skills as well as vocationally specific training.

Originality/value

This if the first study that links these many specific skills to salary variation across less than bachelor’s occupations.

Details

International Journal of Social Economics, vol. 44 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Abstract

This paper shows how a shorter fecundity horizon for females (a biological constraint) leads to age and educational disparities between husbands and wives. Empirical support is based on data from a natural experiment commencing before and ending after China’s 1980 one-child law. The results indicate that fertility in China declined by about 1.2–1.4 births per woman as a result of China’s anti-natalist policies. Concomitantly spousal age and educational differences narrowed by approximately 0.5–1.0 and 1.0–1.6 years, respectively. These decreases in the typical husband’s age and educational advantages are important in explaining the division of labor in the home, often given as a cause for the gender wage gap. Indeed, as fertility declined, which has been the historical trend in most developed countries, husband-wife age and educational differences diminished leading to less division of labor in the home and a smaller gender wage disparity. Unlike other models of division of labor in the home which rely on innately endogenous factors, this paper’s theory is based on an exogenous biological constraint.

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