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1 – 10 of 623Kenta 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.
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Leandro Pinheiro Vieira and Rafael Mesquita Pereira
This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.
Abstract
Purpose
This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.
Design/methodology/approach
Using data from the 2019 National Health Survey (PNS), we initially address the sample selection bias concerning labor market participation by using the Heckman (1979) method. Subsequently, the decomposition of income between smokers and nonsmokers is analyzed, both on average and across the earnings distribution by employing the procedure of Firpo, Fortin, and Lemieux (2009) - FFL decomposition. Ñopo (2008) technique is also used to obtain more robust estimates.
Findings
Overall, the findings indicate an income penalty for smokers in the Brazilian labor market across both the average and all quantiles of the income distribution. Notably, the most significant differentials and income penalties against smokers are observed in the lower quantiles of the distribution. Conversely, in the higher quantiles, there is a tendency toward a smaller magnitude of this gap, with limited evidence of an income penalty associated with this habit.
Research limitations/implications
This study presents an important limitation, which refers to a restriction of the PNS (2019), which does not provide information about some subjective factors that also tend to influence the levels of labor income, such as the level of effort and specific ability of each worker, whether smokers or not, something that could also, in some way, be related to some latent individual predisposition that would influence the choice of smoking.
Originality/value
The relevance of the present study is clear in identifying the heterogeneity of the income gap in favor of nonsmokers, as in the lower quantiles there was a greater magnitude of differentials against smokers and a greater incidence of unexplained penalties in the income of these workers, while in the higher quantiles, there was low magnitude of the differentials and little evidence that there is a penalty in earnings since the worker is a smoker.
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The study investigates the influence of ChatGPT on the labor market dynamics, aiming to provide a structured understanding of the changes induced by generative AI technologies.
Abstract
Purpose
The study investigates the influence of ChatGPT on the labor market dynamics, aiming to provide a structured understanding of the changes induced by generative AI technologies.
Design/methodology/approach
An analysis of existing literature serves as the foundation for understanding the impact, while the supply and demand model helps assess the effects of ChatGPT. A text-mining approach is utilized to analyze the International Standard Occupation Classification, identifying occupations most susceptible to disruption by ChatGPT.
Findings
The study reveals that 32.8% of occupations could be fully impacted by ChatGPT, while 36.5% might experience a partial impact and 30.7% are likely to remain unaffected.
Research limitations/implications
While this study offers insights into the potential influence of ChatGPT and other generative AI services on the labor market, it is essential to note that these findings represent potential implications rather than realized labor market effects. Further research is needed to track actual changes in employment patterns and job market dynamics where these AI services are widely adopted.
Originality/value
This paper contributes to the field by systematically categorizing the level of impact on different occupations, providing a nuanced perspective on the short- and long-term implications of ChatGPT and similar generative AI services on the labor market.
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Fabrício Rios Nascimento Santos, Viviani Silva Lírio and Anderson Moreira Aristides dos Santos
In addition to being a violation of human rights, the practice of child labor can be related to criminality against young people. In view of this, the hypothesis tested in this…
Abstract
Purpose
In addition to being a violation of human rights, the practice of child labor can be related to criminality against young people. In view of this, the hypothesis tested in this article was that child labor aggravates youth homicide through educational level.
Design/methodology/approach
This study used annual data for the 26 states plus the Federal District for the period 2001 to 2014. To do so, the authors used the iterated feasible generalized least squares (IFGLS) estimator under the seemingly unrelated regressions (SUR) model.
Findings
The results showed that child labor positively affects the homicide of young people, showing education as a transmission channel through which the effect is materialized. The general conclusion, given this, that work is an alternative for children not to enter the world of crime due to its socializing character, cannot be sustained.
Practical implications
This evidence provides input to the formulation of policies and programs to eradicate or slow child labor. In addition to the social and economic rise of individuals, it is important to emphasize the role of education (human capital) in explaining economic growth.
Originality/value
So far, there is no record of national research that sought to empirically assess the effect of child labor on crime, in particular, on the homicide of young people, considering education as a transmission channel, and this assessment is the contribution of the present study to the economic literature on crime.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2023-0163
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This paper seeks to explore the sensitivity of these parameters and their impact on fiscal policy outcomes. We use the existing literature to establish possible ranges for each…
Abstract
Purpose
This paper seeks to explore the sensitivity of these parameters and their impact on fiscal policy outcomes. We use the existing literature to establish possible ranges for each parameter, and we examine how changes within these ranges can alter the outcomes of fiscal policy. In this way, we aim to highlight the importance of these parameters in the formulation and evaluation of fiscal policy.
Design/methodology/approach
The role of fiscal policy, its effects and multipliers continues to be a subject of intense debate in macroeconomics. Despite adopting a New Keynesian approach within a macroeconomic model, the reactions of macroeconomic variables to fiscal shocks can vary across different contexts and theoretical frameworks. This paper aims to investigate these diverse reactions by conducting a sensitivity analysis of parameters. Specifically, the study examines how key variables respond to fiscal shocks under different parameter settings. By analyzing the behavioral dynamics of these variables, this research contributes to the ongoing discussion on fiscal policy. The findings offer valuable insights to enrich the understanding of the complex relationship between fiscal shocks and macroeconomic outcomes, thus facilitating informed policy debates.
Findings
This paper aims to investigate key elements of New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models. The focus is on the calibration of parameters and their impact on macroeconomic variables, such as output and inflation. The study also examines how different parameter settings affect the response of monetary policy to fiscal measures. In conclusion, this study has relied on theoretical exploration and a comprehensive review of existing literature. The parameters and their relationships have been analyzed within a robust theoretical framework, offering valuable insights for further research on how these factors influence model forecasts and inform policy recommendations derived from New Keynesian DSGE models. Moving forward, it is recommended that future work includes empirical analyses to test the reliability and effectiveness of parameter calibrations in real-world conditions. This will contribute to enhancing the accuracy and relevance of DSGE models for economic policy decision-making.
Originality/value
This study is motivated by the aim to provide a deeper understanding of the roles macroeconomic model parameters play concerning responses to expansionary fiscal policies and the subsequent reactions of monetary authorities. Comprehensive reviews that encompass this breadth of relationships within a single text are rare in the literature, making this work a valuable contribution to stimulating discussions on macroeconomic policies.
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This study aims to investigate whether social investment (SI) policies improve employment among single mothers.
Abstract
Purpose
This study aims to investigate whether social investment (SI) policies improve employment among single mothers.
Design/methodology/approach
This paper analyzes the potential effects of SI policies on vulnerable individuals and workers at the macro level by using the employment position of single mothers as a dependent variable. Time-series cross-national data from 18 OECD countries between 1998 and 2017 are analyzed. Multilevel model analysis is also used for robustness check.
Findings
I find that public spending on education and family support is positively associated with the employment rates of single mothers. In contrast, active labor market policy (ALMP) spending is negatively associated. ALMP’s negative effects stand out particularly with public spending on job training. Of all family support policies, family allowances are positively associated with single mothers’ employment, which runs counter to the conventional argument that family allowances are a disincentive for women’s or mothers’ employment. Paid leave (length and generosity) is also associated with higher employment for single mothers. There is also some tentative evidence that public spending on maternity leave benefits (spending level) may raise the odds of single mothers being employed, when individual-level factors are controlled for in multilevel analysis we implement for robustness check.
Research limitations/implications
This paper does not analyze the effects of the qualitative properties of SI policies. Future research is necessary in this respect.
Originality/value
The effects of SI policies on employment among single mothers have not yet been examined in the literature. This paper seeks to be a first cut at measuring the effects.
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Lindokuhle Talent Zungu and Lorraine Greyling
This study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.
Abstract
Purpose
This study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.
Design/methodology/approach
In this study, the researchers used time-series data to estimate a Bayesian Vector Autoregression (BVAR) model with hierarchical priors. The BVAR technique has the advantage of being able to accommodate a wide cross-section of variables without running out of degrees of freedom. It is also able to deal with dense parameterization by imposing structure on model coefficients via prior information and optimal choice of the degree of formativeness.
Findings
The results for all countries except Peru confirmed the Rajan hypotheses, indicating that inequality contributes to high indebtedness, resulting in financial fragility. However, for Peru, this study finds it contradicts the theory. This study controlled for monetary policy shock and found the results differing country-specific.
Originality/value
The findings suggest that an escalating level of inequality leads to financial fragility, which implies that policymakers ought to be cautious of excessive inequality when endeavouring to contain the risk of financial fragility, by implementing sound structural reform policies that aim to attract investments consistent with job creation, development and growth in these countries. Policymakers should also be cautious when implementing policy tools (redistributive policies, a sound monetary policy), as they seem to increase the risk of excessive credit growth and financial fragility, and they need to treat income inequality as an important factor relevant to macroeconomic aggregates and financial fragility.
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Kalyani Mangalika Lakmini Rathu Manannalage, Shyama Ratnasiri and Andreas Chai
While the monetary returns to education are well documented in the economics literature, the studies on non-monetary returns to education are scarce. The purpose of this study is…
Abstract
Purpose
While the monetary returns to education are well documented in the economics literature, the studies on non-monetary returns to education are scarce. The purpose of this study is to provide new insights into the non-market outcomes by exploring how education influences the food consumption choices of households and how these effects vary across different socio-economic groups using household-level calorie consumption data from Sri Lanka.
Design/methodology/approach
This study uses two waves of Household Income and Expenditure Surveys – 2006/2007 and 2016. The methods adopted in analysing the data were descriptive statistics and the OLS regression model.
Findings
The empirical results show that educated poor households pay less per calorie compared to non-educated poor households, highlighting the role of education in improving the ability to make better food choices and manage household budgets more economically.
Practical implications
This study informs policy-makers of the importance of education for formulating food and nutritional policies, which aim to raise the standard of living of resource-poor and vulnerable households in Sri Lanka as well as other developing countries with similar socio-economic conditions.
Originality/value
To the best of the authors' knowledge, this study is the first to explore the impact of education on the calorie consumption behaviour of people in the Sri Lankan context using nationwide household surveys.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2022-0007
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Olumide Olaoye, Segun Thompson Bolarinwa and Muhammad Yaseen
The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment…
Abstract
Purpose
The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment in poverty reduction in a panel of 40 sub-Saharan African countries.
Design/methodology/approach
For robustness, the study adopts a variety of estimation techniques. These include the fixed effect (within) regression model, the two-step system generalised method of moments (GMM) and the pooled OLS with Driscoll-Kraay robust standard errors to account for the well-known problems of endogeneity, heterogeneity and cross-sectional dependence inherent in panel data.
Findings
The empirical results show that the reducing impact of public investment on poverty is marginal, while private investment has a significant reducing impact on poverty. The study also found that access to social services, such as water and sanitation, and credit are important determinants of investment in SSA. The research and policy implications are discussed.
Originality/value
The study investigated the separate effect of private and public investments on poverty in SSA, unlike the existing studies that adopted total investment.
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Mohd Atif Aman, Mohammad Khalid Azam and Asif Akhtar
This study aims to identify the changes in different selling situations/styles during and post-COVID scenarios.
Abstract
Purpose
This study aims to identify the changes in different selling situations/styles during and post-COVID scenarios.
Design/methodology/approach
To attain the above-mentioned objective, a qualitative study drawn upon the principles of the theories-in-use approach is conducted. The data were collected through 23 in-depth semistructured interviews, conducted with professional salespeople working at various levels in different industries. The data thus generated was analyzed through open, axial and selective coding, which resulted in three broad categories of changes in professional selling.
Findings
The findings of the study suggest that though sales jobs are perceived to be similar in nature, but there are differences in how various selling jobs are being performed. The same is the case with the effect of the pandemic on sales jobs. The authors found that every selling style faced a different challenge due to the pandemic and so is the case for the salespeople engaged in the respective selling practice.
Originality/value
To the best of the authors’ knowledge, this is the first research of its kind that has focused on the differences in various selling styles. Though the recent academic literature on personal selling does manifest the effect of the pandemic. But, in doing so, these studies have presented “personal selling” as an overarching concept encompassing all types of selling and have failed to differentiate between the various nuances of personal selling which include trade selling, technical selling, new-business selling and missionary selling.
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