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Article
Publication date: 2 January 2024

Kenta Ikeuchi, Kyoji Fukao and Cristiano Perugini

The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the…

Abstract

Purpose

The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the dynamics of overall wage and income inequality in the past decades. The authors focus on three employer-level features that can be associated with asymmetries in the employment relation orientation adopted for college and non-college-educated employees: (1) size, (2) the share of standard employment and (3) the pervasiveness of incentive pay schemes.

Design/methodology/approach

The authors' establishment-level analysis (data from the Basic Survey on Wage Structure (BSWS), 2005–2018) focusses on Japan, an economy characterised by many unique economic and institutional features relevant to the aims of the authors' analysis. The authors use an adjusted measure of firm-specific college wage premium, which is not biased by confounding individual and establishment-level factors and reflects unobservable characteristics of employees that determine the payment of a premium. The authors' empirical methods account for the complexity of the relationships they investigate, and the authors test their baseline outcomes with econometric approaches (propensity score methods) able to address crucial identification issues related to endogeneity and reverse causality.

Findings

The authors' findings indicate that larger establishment size, a larger share of regular workers and more pervasive implementation of IPSs for college workers tend to increase the college wage gap once all observable workers, job and establishment characteristics are controlled for. This evidence corroborates the authors' hypotheses that a larger establishment size, a higher share of regular workers and a more developed set-up of performance pay schemes for college workers are associated with a better capacity of employers to attract and keep highly educated employees with unobservable characteristics that justify a wage premium above average market levels. The authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

Originality/value

The authors' contribution to the existing knowledge is threefold. First, the authors combine the economics and management/organisation literature to develop new insights that underpin the authors' testable empirical hypotheses. This enables the authors to shed light on employer-level drivers of wage differentials (size, workforce composition, implementation of performance-pay schemes) related to many structural, institutional and strategic dimensions. The second contribution lies in the authors' measure of the “adjusted” college wage gap, which is calculated on the component of individual wages that differs between observationally identical workers in the same establishment. As such, the metric captures unobservable workers' characteristics that can generate a wage premium/penalty. Third, the authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 2 May 2023

Quoc Hung Nguyen

This study investigates the impact of the increasing proportion of older workers in the workforce by establishing a theoretical framework and estimating the degree of…

Abstract

Purpose

This study investigates the impact of the increasing proportion of older workers in the workforce by establishing a theoretical framework and estimating the degree of substitutability between them and their younger counterparts.

Design/methodology/approach

The first step is to establish a theoretical framework that combines older and younger workers with imperfect substitutability in the production of final goods within an aggregate production function. The author then derives an equation that relates the relative wage, relative supply and elasticity of substitution between the worker types, for use in estimation. Using data from Japan’s Basic Survey on Wage Structure and Population Census from 2010 to 2019 across 47 prefectures, the author estimates the elasticity of substitution between older and younger workers in Japan.

Findings

The author finds that workers aged 55 and over and their younger counterparts are gross substitutes, and the estimated elasticity of substitution is in the range of 2.33–2.86. This implies that a 10% increase in the relative number of workers aged 55 and older leads to a fall in their relative wage in the range of 3.5–4.3%. The study estimations suggest that since 2010, there has been a convergence in the relative wage of older workers across Japan’s prefectures.

Originality/value

Understanding the degree of substitutability between older and younger workers is essential for quantitatively assessing the impact of workforce aging, technological advancements and labor policies on the wage distribution. This study estimates the elasticity of substitution between the two worker types based on a theoretical model, and utilizes recent datasets and methodology not adequately addressed in previous literature.

Details

International Journal of Manpower, vol. 44 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Content available
Book part
Publication date: 7 December 2023

Manfred Stock, Alexander Mitterle and David P. Baker

Advanced education is often thought to respond to the demands of the economy, market forces create new occupations, and then universities respond with new degrees and curricula…

Abstract

Advanced education is often thought to respond to the demands of the economy, market forces create new occupations, and then universities respond with new degrees and curricula aimed at training future workers with specific new skills. Presented here is comparative research on an underappreciated, yet growing, concurrent alternative process: universities, with their global growth in numbers and enrollments, in concert with expanding research capacity, create and privilege knowledge and skills, legitimate new degrees that then become monetized and even required in private and public sectors of economies. A process referred to as academization of occupations has far-reaching implications for understanding the transformation of capitalism, new dimensions of social inequality, and resulting stratification among occupations. Academization is also eclipsing the more limited professionalization processes in occupations. Additionally, it fuels further expansion of advanced education and contributes to a new culture of work in the 21st century. Commissioned detailed German and US case studies of the university origins and influence on workplace consequences of seven selected occupations and associated knowledge, skills, and degrees investigate the academization process. And to demonstrate how universal this could become, the cases contrast the more open and less-restrictive education and occupation system in the US with the centralized and state-controlled education system in Germany. With expected variation, both economies and their occupational systems show evidence of robust academization. Importantly too is evidence of academic transformations of understandings about approaches to job tasks and use of authoritative knowledge in occupational activities.

Details

How Universities Transform Occupations and Work in the 21st Century: The Academization of German and American Economies
Type: Book
ISBN: 978-1-83753-849-2

Keywords

Article
Publication date: 2 May 2023

Antonio Caparrós Ruiz

The current expansion of the knowledge economy and its requirements of highly educated workers make interesting to analyse the effects on the labour market outcomes of completing…

Abstract

Purpose

The current expansion of the knowledge economy and its requirements of highly educated workers make interesting to analyse the effects on the labour market outcomes of completing a master's degree. This study examines the factors determining the probability of pursuing a postgraduate programme and observes whether workers reaching this educational attainment reap the benefits of their human capital investment through better paid jobs compared to college-only degree holders. On the other hand, it analyses whether individuals with a master's degree are more prone to upward wage mobility.

Design/methodology/approach

The study relies on data obtained from the second survey on the Labour Insertion of University Graduates conducted by the National Statistics Institute (INE, 2019). This survey allows us to observe labour market transitions of the first group of Spanish university graduates under the European Higher Education Area (EHEA) and their earnings. The methodological procedure consists of the estimation of wage models controlling for the unobservable differences between workers who have or have not completed a master's degree.

Findings

The results indicate a significant positive impact of master's degree on salaries. Furthermore, individuals with postgraduate studies are more prone to upward wage mobility in comparison to college-only degree holders.

Research limitations/implications

Data used does not allow us to identify which competences associated with the completion of a master's degree are more remunerated by employers.

Practical implications

The econometric specification applied allows us to compute the direct effect of a master's degree on wages and predict the average probability that an individual is in a determined wage interval according to the knowledge area and controlling by the rest of characteristics.

Social implications

The findings are helpful to diagnose and understand how the knowledge acquired through postgraduate studies are rewarded by the labour market, which is essential to evaluate the return on educational investments when making decisions about whether or not to continue postgraduate studies.

Originality/value

This research addresses novelty aspects on tertiary education in Spain and its effects on workers' careers.

Details

International Journal of Manpower, vol. 44 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 2 April 2024

Sofiia Dolgikh and Bogdan Potanin

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is…

Abstract

Purpose

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is efficient then higher levels of education usually associated with greater returns on labor market. To evaluate the efficiency of Russian education system we aim to estimate the effect of vocational education and different levels of higher education on wages.

Design/methodology/approach

We use data on 8,764 individuals in the years 2019–2021. Our statistical approach addresses two critical issues: nonrandom selection into employment and the endogeneity of education choice. To tackle these problems, we employed Heckman’s method and its extension that is a structural model which addresses the issue of self-selection into different levels of education.

Findings

The results of the analysis suggest that there is a significant heterogeneity in the returns to different levels of education. First, higher education, in general, offers substantial wage premiums when compared to vocational education. Specifically, individuals with specialist’s and bachelor’s degrees enjoy higher wage premiums of approximately 23.59–24.04% and 16.43–16.49%, respectively, compared to those with vocational education. Furthermore, we observe a significant dis-parity in returns among the various levels of higher education. Master’s degree provides a substantial wage premium in comparison to both bachelor’s (19.79–20.96%) and specialist’s (12.64–13.41%) degrees. Moreover, specialist degree offers a 7.16–7.55% higher wage premium than bachelor’s degree.

Practical implications

We identify a hierarchical pattern in the returns associated with different levels of higher education in Russia, specifically “bachelor-specialist-master.” These findings indicate that each level of education in Russia serves as a distinct signal in the labor market, facilitating employers' ability to differentiate between workers. From a policy perspective, our results suggest the potential benefits of offering opportunities to transition from specialist’s to master’s degrees on a tuition-free basis. Such a policy may enhance access to advanced education and potentially lead to higher returns for individuals in the labor market.

Originality/value

There are many studies on returns to higher education in Russia. However, just few of them estimate the returns to different levels of higher education. Also, these studies usually do not address the issue of the endogeneity arising because of self-selection into different levels of education. Our structural econometric model allows addressing for this issue and provides consistent estimates of returns to different levels of education under the assumption that individuals with higher propensity to education obtain higher levels of education.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 4 January 2024

Maryam Dilmaghani

Using the Canadian Census of 2016, the present study examines the Black and White gap in compensating differentials for their commute to work.

Abstract

Purpose

Using the Canadian Census of 2016, the present study examines the Black and White gap in compensating differentials for their commute to work.

Design/methodology/approach

The data are from the Canadian Census of 2016. The standard Mincerian wage regression, augmented by commute-related variables and their confounders, is estimated by OLS. The estimations use sample weights and heteroscedasticity robust standard errors.

Findings

In the standard Mincerian wage regressions, Black men are found to earn non-negligibly less than White men. No such gap is found among women. When the Mincerian wage equation is augmented by commute duration and its confounders, commute duration is revealed to positively predict wages of White men and negatively associate with wages of Black men. At the same time, in the specifications including commute duration and its confounders, the coefficient for the dummy variable identifying Black men is positive with a non-negligible size. The latter pattern indicates wage discrepancies among Black men by their commute duration. Again, no difference is found between Black and White women in these estimations.

Research limitations/implications

The main caveat is that due to data limitations, causal estimates could not be produced.

Practical implications

For the Canadian working men, the uncovered patterns indicate both between and within race gaps in the impact of commuting on wages. Particularly, Black men seem to commute longer towards relatively lower paying jobs, while the opposite holds for their White counterparts. However, Black men who reside close to their work earn substantially more than both otherwise identical White men and Black men who live far away from their jobs. The implications for research and policy are discussed.

Originality/value

This is the first paper focused on commute compensating differentials by race using Canadian data.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 January 2024

Amber L. Stephenson and David B. Yerger

The purpose of this study was to examine the boundary conditions of Kanter's (1977) tokenism theory as applied to the gender wage gap. The authors aimed to discover if there was a…

Abstract

Purpose

The purpose of this study was to examine the boundary conditions of Kanter's (1977) tokenism theory as applied to the gender wage gap. The authors aimed to discover if there was a point where the relationship between the percentage of women in a job category and the gender wage gap changed, and, if so, where the threshold was located and what was the nature of the shift in relationship.

Design/methodology/approach

The authors used the Andrews’ (1993) threshold effects technique. Using 22 separate years of publicly available Canadian wage data, they examined the relationship between the percentage of females in 40 unique occupational categories and the female-to-male earnings ratio (for a total of 880 observations).

Findings

The results showed the existence of a threshold point, and that early gains in percent female within an occupation, up to approximately 14% female in the occupation, associate with strong gains in the female-to-male wage ratio. However, beyond that point, further gains in percent female associate with smaller improvements in the female-to-male wage ratio.

Practical implications

The findings are useful in understanding the dynamics of occupational group gender composition, potential theoretical reasons for the nuances in relationship, as well as opportunities that may facilitate more equitable outcomes.

Originality/value

The results show that, though improvements were made above and below the threshold point, enhancements in the wage gap are actually larger when there are less women in the job category (e.g. tokens).

Details

Equality, Diversity and Inclusion: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7149

Keywords

Open Access
Article
Publication date: 1 August 2023

Aleksander Kucel and Montserrat Vilalta-Bufí

Research shows that parental employment and education status affect the amount of parental childcare time, which is a fundamental determinant of children's outcomes. In this…

Abstract

Purpose

Research shows that parental employment and education status affect the amount of parental childcare time, which is a fundamental determinant of children's outcomes. In this paper, the authors study whether being overeducated – working in a job that requires less education than the level of education acquired – is related to the time parents devote to their children.

Design/methodology/approach

The authors set two main hypotheses. First, overeducation might lead to more childcare time if being overeducated is the result of the individual prioritizing family over career. Second, overeducation might lead to less childcare time if overeducation is the result of lower ability. The authors estimate time use equations using the American Time Use Survey (ATUS) from 2004 to 2019.

Findings

The authors find that overeducated parents devote less time to childcare than matched parents, especially in the weekend sample. The authors’ results suggest that overeducation is not a deliberate choice prioritizing family over career.

Originality/value

To the best of the authors’ knowledge, this is the first study on the implications of being overeducated on childcare.

Details

International Journal of Manpower, vol. 44 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 12 December 2023

Floris de Krijger

A growing body of research finds that gig economy platforms use gamification to enhance managerial control. Focusing on technologically mediated forms of gamification, this…

Abstract

A growing body of research finds that gig economy platforms use gamification to enhance managerial control. Focusing on technologically mediated forms of gamification, this literature reveals how platforms mobilize gig workers’ work effort by making the labour process resemble a game. This chapter contends that this tech-centric scholarship fails to fully capture the historical continuities between contemporary and much older occurrences of game-playing at work. Informed by interviews and participatory observations at two food delivery platforms in Amsterdam, I document how these platforms’ piece wage system gives rise to a workplace dynamic in which severely underpaid delivery couriers continuously employ game strategies to maximize their gig income. Reminiscent of observations from the early shop floor ethnographies of the manufacturing industry, I show that the game of gig income maximization operates as an indirect modality of control by (re)aligning the interests of couriers with the interests of capital and by individualizing and depoliticizing couriers’ overall low wage level. I argue that the new, algorithmic technologies expand and intensify the much older forms of gamified control by infusing the organizational activities of shift and task allocation with the logic of the piece wage game and by increasing the possibilities for interaction, direct feedback and immersion. My study contributes to the literature on gamification in the gig economy by interweaving it with the classic observations derived from the manufacturing industry and by developing a conceptualization of gamification in which both capital and labour exercise agency.

Details

Ethnographies of Work
Type: Book
ISBN: 978-1-83753-949-9

Keywords

Open Access
Article
Publication date: 28 February 2023

Daniela Rohrbach-Schmidt, Caroline Wehner, Sabine Krueger and Christian Ebner

This article aims to examine whether specific job tasks measured at the individual level or personality traits are associated with wages and whether the relationship between…

Abstract

Purpose

This article aims to examine whether specific job tasks measured at the individual level or personality traits are associated with wages and whether the relationship between personality traits and wages differs depending on the job tasks that individuals perform.

Design/methodology/approach

This study analyzes the association between job tasks and personality traits, and their interaction, with regard to wages using German employee data from 2017/2018.

Findings

Results suggest that nonroutine manual, interactive or analytic tasks are associated with significantly higher wages compared to routine manual tasks, and while extraversion and emotional stability are related to higher wages, agreeableness and openness tend to be associated with lower wages also within occupations. Moreover, the association between personality traits and wages varies depending on the job task requirements at the workplace. A high degree of extraversion in particular is associated with higher wages when the employee performs nonroutine manual, interactive or analytic tasks.

Originality/value

To date, especially the interaction between individual job tasks and personality traits on wages has not been extensively studied because data on both job tasks and personality at the employee level are scarce. This study contributes to the understanding of wage differences among employees.

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