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Article
Publication date: 6 May 2014

Devanto Shasta Pratomo

The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey…

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Abstract

Purpose

The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey (Sakernas) data from 1996 to 2003.

Design/methodology/approach

This study employs Bourguignon-Fournier-Gurgand two-step procedure of sample selection corrections based on a multinomial logit model for a potential selection bias from a non-random sample. This study extends the specification by examining the effects of minimum wage on hours worked of paid employment separately across individuals in different groups of gender (male-female workers) and residences (urban-rural areas).

Findings

This study generally found that an increase in the minimum wage increases hours worked of the existing paid employees. The effects of the minimum wage on hours worked are stronger for female workers than male workers particularly in urban areas due to that female workers, particularly in urban areas, are mostly employed in industries which contain more low-wage workers. Comparing residences, the minimum wage coefficient in rural areas is slightly higher because of the structural transformation in Indonesia marked by a shift in employment from the agriculture sector to the other sectors that require more working hours.

Originality/value

The empirical studies of the effect of minimum wage on hours worked in developing countries are very limited. This study contributes to the literature by employing the sample selection corrections based on a multinomial logit for a potential selection bias from a non-random sample This study also extends the hours worked specification by analyzing the effects of minimum wage on hours worked separately across individuals in different groups of workers, in terms of gender (male-female workers) and their residences (urban-rural areas).

Details

International Journal of Social Economics, vol. 41 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 2 August 2018

Liviu Florea, Sorin Valcea, Maria Riaz Hamdani and Thomas W. Dougherty

The purpose of this paper is to investigate how individual interviewers’ dispositional cognitive motivations may influence interview interactions and outcomes. More specifically…

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Abstract

Purpose

The purpose of this paper is to investigate how individual interviewers’ dispositional cognitive motivations may influence interview interactions and outcomes. More specifically, this study explores the influence of the need for cognition, need for cognitive closure, and accountability on the relationship between first impressions and selection decisions.

Design/methodology/approach

In total, 41 graduate students were assigned the role of interviewers and were tasked to interview 331 undergraduate students at a large Midwestern university. The selection interview was designed to recruit qualified undergraduate students to the MBA program of the university.

Findings

First impressions significantly influenced selection decisions, but did not influence interviewers’ behaviors. Moreover, multilevel analyses reveal that interviewers’ need for cognition and accountability moderate the relationship between first impression and selection decisions, albeit in different direction. Need for cognition strengthens, whereas accountability weakens the relationship between first impression and selection decision.

Research limitations/implications

A potential interviewer bias is apparent, where interviewers high on need for cognition tend to weight first impressions more in the decision process. However, this bias was not directly observable, since interviewers’ behaviors during the interview were not affected by first impressions.

Originality/value

The present study goes beyond previous research on first impressions in the employment interview, finding that dispositional differences account for the tendency to weigh first impressions in the selection decision.

Details

Personnel Review, vol. 48 no. 1
Type: Research Article
ISSN: 0048-3486

Keywords

Book part
Publication date: 1 October 2008

Lorenzo Cappellari and Stephen P. Jenkins

We model transitions between unemployment, low-paid and high-paid employment by British men using a first order Markov model with endogenous switching that also takes into account…

Abstract

We model transitions between unemployment, low-paid and high-paid employment by British men using a first order Markov model with endogenous switching that also takes into account the endogeneity of initial conditions, selection into employment, and sample attrition. Our estimates indicate that all three selectivity issues are non-ignorable. We demonstrate several interrelationships between the dynamics of (un)employment and low-paid work between one year and the next, represented by forms of (cross-)state dependence. Controlling for heterogeneity, the probability of a man having a low-paid job in one year depends not only whether he had a job a year before but also whether that job was low paid. The probability of his being employed at all depends on whether he had a job the previous year.

Details

Work, Earnings and Other Aspects of the Employment Relation
Type: Book
ISBN: 978-1-84950-552-9

Article
Publication date: 18 September 2017

Frank J. Cavico and Bahaudin Mujtaba

While the words diversity, disparate impact, and discrimination are commonly read and heard by working adults and professionals, they can at times be confusing and fearful to some…

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Abstract

Purpose

While the words diversity, disparate impact, and discrimination are commonly read and heard by working adults and professionals, they can at times be confusing and fearful to some managers. The purpose of this paper is to provide an overview of a specific aspect of US civil rights laws – the disparate impact theory. The authors provide an analysis based on the statute, case law interpreting, and applying the statute, administrative guidelines from the Equal Employment Opportunity Commission, as well as legal and management commentary. The paper illustrates the requirements of a plaintiff employee’s initial case based on the disparate impact theory. The challenging causation component which requires some degree of statistical evidence is given particular attention. Limitations to the paper are stated at the beginning; and recommendations to managers are explored and provided toward the end of the paper.

Design/methodology/approach

It is a legal paper which covers all the laws related to discrimination based on disparate impact and disparate treatment theories. Actual court cases up until this month and Americans laws related to this concept are reviewed and critically discussed.

Findings

The salient feature of disparate impact is that this legal theory allows a plaintiff job applicant or employee to sustain a case of illegal discrimination without providing any evidence of a discriminatory motive. As opposed to the disparate treatment liability is imposed based on disproportionate adverse results and not discriminatory intent.

Research limitations/implications

This paper deals with the disparate impact theory pursuant to Title VII of the Civil Rights Act. However, it must be pointed out that the disparate impact theory is also applicable to claims arising under the Americans with Disabilities Act and the Age Discrimination in Employment Act. Since the focus of this paper is Title VII federal and state constitutional issues, such as the applicability of the 14th Amendment’s Equal Protection clause that may arise in disparate impact cases involving government entities will not be addressed.

Practical implications

Managers and employees can protect themselves in the workplace from illegal discriminatory practices. Initially, employers and managers must be aware of the distinction between a disparate impact case and a disparate treatment case with the latter requiring evidence of intentional discrimination. Evidence, of course, can be direct or circumstantial or inferential. Whereas in a disparate impact case there is no intentional discrimination; and as such proof of discriminatory intent is not required. Rather, the employee has to present evidence that the employer’s neutral on-its-face employment policy or practice caused an adverse disproportionate impact on the employee as a member of a protected class.

Social implications

Human resources professionals and managers must become educated in diversity laws in order to provide an inclusive workplace for all employees and candidates. Employers have legitimate areas of concern in hiring and promoting employees; and the courts are cognizant of employer responsibilities; and thus the employers must be able to show how specific knowledge, skills, education, training, backgrounds, as well as height, weight, strength, and dexterity are legitimate qualifications that directly relate to successful job performance.

Originality/value

This is an original paper by the authors.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 36 no. 7
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 1 April 2005

Shoshana Neuman and Ronald L. Oaxaca

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

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Abstract

Purpose

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

Design/methodology/approach

Selection and wage equations are estimated for each of the population groups (Eastern women, Western women, Eastern men, Western men) separately. The wage equations are corrected for selectivity using the Heckman procedure and subsequently wage differentials are decomposed into the three components mentioned above, using four alternative decompositions suggested in 2004 by Neuman and Oaxaca.

Findings

Gender wage differentials are significantly larger than ethnic differences. Discrimination is more common between the genders. The four alternative decompositions – that are based on different assumptions and objectives – yield different results.

Research limitations/implications

Decomposition of wage differences between groups needs to take into account information on the local relevant labor market and the wage setting process.

Practical implications

Information on the relative shares of the endowments, discrimination and selectivity components leads to a more effective way to close wage gaps.

Originality/value

Employment of new proposed decomposition methodologies that might lead to practical implications to combat gender and ethnic wage gaps in Israel.

Details

International Journal of Manpower, vol. 26 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 6 June 2016

Aleksander Kucel and Montserrat Vilalta-Bufi

Promotion of entrepreneurial skills is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of entrepreneurial…

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Abstract

Purpose

Promotion of entrepreneurial skills is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of entrepreneurial skills, nor the costs and benefits of such a policy are clear. The purpose of this paper is to check whether the benefits of entrepreneurial skills extent beyond self-employment. The authors denote entrepreneurial skills as those competencies that enhance the likelihood of self-employment. Then the authors analyze whether they are rewarded in wage employment.

Design/methodology/approach

The authors estimate a Heckman selection model with wages in a salaried job as the main dependent variable and working in wage employment vs self-employment as the selection equation. The authors use a sample of higher education graduates from Spain, from the year 2000 interviewed in 2005 within the REFLEX survey.

Findings

Results reveal that alertness to new opportunities, ability to mobilize others and knowledge of other fields are the competencies that enhance self-employment in Spain. Yet, these skills are not rewarded in a salaried job. Therefore, benefits of policies fostering entrepreneurial skills do not extend to wage employment in Spain.

Research limitations/implications

The exclusion restriction used in the analysis is father’s education. The authors assume that all the effect of parental education on wages goes through education attainment of the individual and her ability (proxied by her grade in secondary education). A better proxy for ability would be desirable.

Originality/value

The authors identify which competencies enhance self-employment in Spain. The authors find that these competencies are not rewarded in wage employment, so the benefits of policies promoting entrepreneurial education remain within self-employment activity only.

Details

International Journal of Manpower, vol. 37 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 17 January 2022

Jason Jabbari, Stephen Roll, Sam Bufe and Yung Chun

In this paper, the authors explore the relationship that slack resources and technology-mediated human capital investments can have on individuals’ entrepreneurial intentions…

Abstract

Purpose

In this paper, the authors explore the relationship that slack resources and technology-mediated human capital investments can have on individuals’ entrepreneurial intentions. Focusing on human capital investments that individuals make through education and work, the authors analyze the relationship among formal online learning opportunities, informal skill development in the gig economy and entrepreneurial intentions.

Design/methodology/approach

Leveraging a novel dataset that merges administrative tax data with a survey of over 8,528 low- and moderate income (LMI) households, this study uses machine learning and propensity score weighting to examine the likelihood that individuals who make these technology-mediated human capital investments will have increased odds of entrepreneurial intentions when compared to similar individuals who do not make these investments.

Findings

The authors find that both partaking in online learning and working in the gig economy are significantly associated with increased odds of entrepreneurial intentions. Furthermore, through a variety of robustness and mechanism checks, the authors find that technology-mediation is an important factor in these relationships and that informal skill development and career preparation is one way in which gig employment influences entrepreneurial intentions.

Research limitations/implications

As the study’s data come from a cross-sectional survey, the authors cannot make causal inferences about the relationship between online learning, gig employment and entrepreneurial intentions. Thus, future research should explore sources of longitudinal data.

Practical implications

This study has practical implication for individuals and policymakers that seek to increase entrepreneurship among LMI households.

Originality/value

Despite a wealth of research on the relationships among slack resources, technology and innovation at the firm level, there is little of this research at the individual level – especially among LMI individuals. The authors begin to fill this important gap.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 7 August 2017

Thomas Georgiadis and George Christopoulos

The purpose of this paper is to focus on the investigation of gender inequalities in the labour market at the regional level in Greece throughout the years preceding and following…

Abstract

Purpose

The purpose of this paper is to focus on the investigation of gender inequalities in the labour market at the regional level in Greece throughout the years preceding and following the economic crisis.

Design/methodology/approach

Utilising microdata from the European Union Statistics on Income and Living Conditions (EU-SILC) database from 2005 up to the most recent available, the authors construct the Total Earnings Gap Index, a composite index at the individual level which incorporates gender differentials in aspects related to employment, work intensity and earnings. This approach is further complemented by the results of the econometric analysis (a probit model for the probability of being in employment and a Heckman selection model for the determinants of hourly pay and hours worked), which portray the impact of gender on a set of labour-related characteristics.

Findings

The findings of the analysis indicate a widespread reduction of the gender gap; however, this appears to be mainly the result of a sharper fall in employment among men, hence pointing towards a “race to the bottom” process which presents few – if any – signs of an increase of women’s economic independence. The emerging picture points towards a trend of regional convergence in gender gaps, while also highlighting that similar gender equality outcomes are, in certain cases, shaped by radically different dynamics.

Originality/value

This paper uses an innovative composite index which provides a multi-dimensional depiction of gender inequality in the Greek labour market. This index has been introduced by Eurostat and has been applied at the country level, with this paper being the first – to the authors’ knowledge – to apply it at the regional level. Additionally, by examining years before and throughout the crisis, the present analysis adopts a dynamic perspective, offering valuable insight into the seismic shifts that Greece’s labour market structure has undergone during this period.

Details

International Journal of Manpower, vol. 38 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 30 June 2016

Donald H. Kluemper, Arjun Mitra and Siting Wang

Over the past decade, the rapid evolution of social media has impacted the field of human resource management in numerous ways. In response, scholars and practitioners have sought…

Abstract

Over the past decade, the rapid evolution of social media has impacted the field of human resource management in numerous ways. In response, scholars and practitioners have sought to begin an investigation of the myriad of ways that social media impacts organizations. To date, research evidence on a range of HR-related topics are just beginning to emerge, but are scattered across a range of diverse literatures. The principal aim of this chapter is to review the current literature on the study of social media in HRM and to integrate these disparate emerging literatures. During our review, we discuss the existent research, describe the theoretical foundations of such work, and summarize key research findings and themes into a coherent social media framework relevant to HRM. Finally, we offer recommendations for future work that can enhance knowledge of social media’s impact in organizations.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78635-263-7

Keywords

Book part
Publication date: 23 November 2020

Carolina Castagnetti, Luisa Rosti and Marina Töpfer

This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach…

Abstract

This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach for model selection, we use a machine-learning approach (post double robust Least Absolute Shrinkage Operator [LASSO]). This approach allows us to reduce Omitted Variable Bias (OVB), given data restrictions, and to obtain a robust estimate of the conditional age pay gap. We then decompose the conditional gap and analyze the impact of four further potential sources of heterogeneity (workers', sectors', and occupations' permanent heterogeneity as well as sample selection bias). The results suggest that age discrimination in pay is only perceived but not real in Italy for both men and women.

Details

Change at Home, in the Labor Market, and On the Job
Type: Book
ISBN: 978-1-83909-933-5

Keywords

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