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Open Access
Article
Publication date: 2 October 2017

Anna Ilsøe, Trine Pernille Larsen and Jonas Felbo-Kolding

The purpose of this paper is to investigate the effect of part-time work on absolute wages. The empirical focus is wages and working hours in three selected sectors within private…

2940

Abstract

Purpose

The purpose of this paper is to investigate the effect of part-time work on absolute wages. The empirical focus is wages and working hours in three selected sectors within private services in the Danish labour market – industrial cleaning, retail, hotels and restaurants – and their agreement-based regulation of working time and wages. Theoretically, this analysis is inspired by the concept of living hours, which addresses the interaction between working hours and living wages, but adds a new layer to the concept in that the authors also consider the importance of working time regulations for securing a living wage.

Design/methodology/approach

The paper builds on desk research of collective agreements and analysis of monthly administrative register data on wages and working hours of Danish employees from the period 2008-2014.

Findings

This analysis shows that the de facto hourly wages have increased since the global financial crisis in all three sectors. This is in accordance with increasing minimum wage levels in the sector-level agreements. The majority of workers in all three sectors work part-time. Marginal part-timers – 15 hours or less per week – make up the largest group of workers. The de facto hourly wage for part-timers, including marginal part-timers, is relatively close to the sector average. However, the yearly job-related income is much lower for part-time than for full-time workers and much lower than the poverty threshold. Whereas the collective agreement in industrial cleaning includes a minimum floor of 15 weekly working hours – this is not the case in retail, hotels and restaurants. This creates a loophole in the latter two sectors that can be exploited by employers to gain wage flexibility through part-time work.

Originality/value

The living wage literature usually focusses on hourly wages (including minimum wages via collective agreements or legislation). This analysis demonstrates that studies of low-wage work must include the number of working hours and working time regulations, as this aspect can have a dramatic influence on absolute wages – even in cases of hourly wages at relatively high levels. Part-time work and especially marginal part-time work can be associated with very low yearly income levels – even in cases like Denmark – if regulations do not include minimum working time floors. The authors suggest that future studies include the perspective of living hours to draw attention to the effect of low number of weekly hours on absolute income levels.

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 12 January 2021

Evans Korang Adjei, Lars-Fredrik Andersson, Rikard H. Eriksson and Sandro Scocco

The purpose of this paper is to examine the effects of immigration on the labour market outcomes of low-educated natives (i.e. residents without a university diploma). Using the…

4893

Abstract

Purpose

The purpose of this paper is to examine the effects of immigration on the labour market outcomes of low-educated natives (i.e. residents without a university diploma). Using the labour market competition theory, which argues that the labour market effects of natives depend on the skill set of immigrants, the paper addresses whether immigrants are complementary to or substitutes for native workers.

Design/methodology/approach

Longitudinal matched employer–employee data on Sweden are used to estimate how low-educated natives, in regions experiencing the greatest influx of refugees from the Balkan wars, responded to this supply shock with regard to real wages, employment and job mobility between 1990 and 2003.

Findings

First, the analysis shows that low-educated native workers respond to the arrival of immigrants with an increase in real wages. Second, although employment prospects in general worsened for low-skilled workers in most regions, this is not attributable to the regions experiencing the largest supply shock. Third, there are indications that low-skilled natives in immigration-rich regions are more likely to change workplace, particularly in combination with moving upwards in the wage distribution.

Originality/value

Rather than seeing an emergence of the commonly perceived displacement mechanism when an economy is subject to a supply shock, the regional findings suggest that high inflows of immigrants tend to induce a mechanism that pulls native workers upwards in the wage distribution. This is important, as the proportion of immigrants is seldom evenly distributed within a nation.

Details

International Journal of Social Economics, vol. 48 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 29 February 2024

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.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 6 April 2021

Mahalia Jackman and Winston Moore

This paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.

2540

Abstract

Purpose

This paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.

Design/methodology/approach

The empirical analysis is carried out using labour force survey data and interval regressions.

Findings

Estimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.

Originality/value

To date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.

Details

Journal of Economics and Development, vol. 23 no. 3
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 13 December 2021

Feng Zhao, Jiahe Tian and Yuchen Duan

The neo-Kaleckian model follows the ideas of Marx, Keynes and Kalecki, that investment is a key influencing factor in the dynamics of the capitalist mode of production. Through…

Abstract

Purpose

The neo-Kaleckian model follows the ideas of Marx, Keynes and Kalecki, that investment is a key influencing factor in the dynamics of the capitalist mode of production. Through the discussion of different forms of investment decision function, this paper constructs the analysis framework of wage-led and profit-led economic growth regimes.

Design/methodology/approach

The model has become an important theoretical paradigm for current Western heterodox economists regarding the research on the impact of functional income distribution on economic growth, and it has a very large impact on both theoretical and empirical research. Starting from Marx's reproduction theory, this article discusses the theoretical shortcomings of the neo-Kaleckian growth regime model.

Findings

This paper mainly focuses on three aspects: (1) the ideological legacy of “Smith's Dogma”; (2) neglecting the restrictions on income distribution from the organic composition of capital and the surplus value rate; (3) technological progress and the formation of a new long economic wave.

Originality/value

The authors believe that the neo-Kaleckian model unilaterally emphasizes the demand-side factors in the economy and, unconsciously or not, ignores the role of the supply-side, which makes it encounter certain limitations in explaining long-term growth. Even if some empirical conclusions are employed to bridge functional income distribution and technological progress, there is still a lack of a theoretical basis for accurately describing long-term economic changes using this model. In order to better promote high-quality economic development and accelerate the formation of a new pattern of economic development in which the domestic large-scale cycle is the mainstay and the domestic and international double cycles promote each other, the authors need to adopt a policy combination with the supply-side as the main and the demand-side as the supplement, and to work from both sides.

Details

China Political Economy, vol. 4 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 14 October 2021

Fan Gao

Poverty alleviation has been a major theme of China's modernization process since the founding of New China. This paper points out that China's poverty alleviation process…

2155

Abstract

Purpose

Poverty alleviation has been a major theme of China's modernization process since the founding of New China. This paper points out that China's poverty alleviation process presents three stylized facts: “Miraculous” achievements of poverty alleviation have been made on a global scale; the poverty alleviation achievements mainly occurred in the high growth stage after reform and opening up; the poverty alleviation process is accompanied by the structural transformation of the urban–rural dual economy.

Design/methodology/approach

Therefore, a logically consistent analytical framework should form among the structural transformation of the dual economy, economic growth and the achievements in poverty alleviation. In logical deduction, the structural transformation of the dual economy affects rural poverty alleviation through the effects of labor reallocation, agricultural productivity improvement, demographic change and fiscal resource allocation.

Findings

The first two refer to economic growth, and the latter two are alleviation policies. The combination of economic growth and poverty alleviation policies is the main cause for poverty alleviation performance. China's empirical evidence can support the four effects by which the structural transformation of the dual economy affects poverty alleviation.

Originality/value

China's socialist system and its economic system transformation after reform and opening up provide an institutional basis for the effects to come into play. After 2020, China's poverty alleviation strategies will enter the “second-half” phase, namely, the phase of solving the problems of relative poverty in urban and rural areas by adopting conventional methods and establishing long-term mechanisms. This requires the facilitation of the reconnection between poverty alleviation strategies and the structural transformation of the dual economy in terms of development ideas and policy directions.

Open Access
Article
Publication date: 1 August 2019

Jianghuai Zheng and Chunmiao Shen

The purpose of this paper is to propose policy recommendations that resort to the domestic market to achieve inclusive growth from an open perspective.

3036

Abstract

Purpose

The purpose of this paper is to propose policy recommendations that resort to the domestic market to achieve inclusive growth from an open perspective.

Design/methodology/approach

How will economic globalization based on domestic demand affect economic growth and income distribution in an open and large country? With the aim of discussing the mechanism of the impact of expanding domestic demand on the inclusive growth from an open perspective, this paper incorporates the Global Value Chains vs National Value Chains (GVC-NVC) competition, which is triggered by foreign investments attracted by the domestic demand scale into an endogenous growth model with “Schumpeterian Innovation.”

Findings

Theoretical analysis indicates the following findings: although domestic demand-based economic globalization can promote transnational inclusive growth across countries, it is not conducive to national (domestic) inclusive growth; the impacting effect of domestic demand scale on inclusive growth across countries is subject to the moderating effect of the development maturity of the labor market; and the impacting effect of domestic demand scale on national inclusive growth is subject to the joint moderating effect of the development maturity of the labor market and labor skill structure.

Originality/value

First, this paper examines the impact of domestic demand-based economic globalization on the inclusiveness of economic growth from an open perspective, which deepens the existing theory of intra-product specialization and inclusive growth. Second, the paper puts the sequential production process into Schumpeterian growth model and reveals the mechanism that domestic demand affects inclusive growth. Third, the study finds that the enhancement of labor market efficiency, transfer payments to low-skilled labor and the creation of a fair competitive market environment will contribute to the globalization of a domestic demand-oriented economy, which provides a policy-making basis for government sectors.

Details

China Political Economy, vol. 2 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 18 December 2020

Birgitta Jansson and Lovisa Broström

There is ongoing debate amongst in-work poverty researchers as to how to answer the question “who is counted as in-work poor?” and how to define the minimum size of work that…

1658

Abstract

Purpose

There is ongoing debate amongst in-work poverty researchers as to how to answer the question “who is counted as in-work poor?” and how to define the minimum size of work that should be used to determine a “working threshold”. The purpose of this paper aims to contribute to this debate by testing five different definitions of a “working threshold” and discussing their implications when testing the different measurement outcomes.

Design/methodology/approach

The authors use data from Statistics Sweden (SCB), including the total population registered as living in Sweden for each year from 1987 to 2017. All calculations are on a yearly basis and in fixed prices (2017). The data set used is based on linked administrative data retrieved from Statistics Sweden and the software used is SAS 9.4.

Findings

Results show how in-work poverty trends differ by measurement approach. The two definitions with the lowest income thresholds are found to include a very heterogenic group of individuals. The development of in-work poverty in Sweden over 30 years show decreasing in-work poverty during the first decade followed by an increase to almost the same levels at the end of the period. In-work poverty in Sweden has transformed from being female-dominated in 1987 and the typical person in in-work poverty 2017 is a male immigrant, aged 26–55 years.

Practical implications

This methodological discussion might lead to a new definition of who is a worker amongst the in-work poor, which could consequently affect who is counted as being in in-work poverty and lead to new social policy measures.

Originality/value

This is, to the authors' knowledge, the first time different definitions of work requirement used to define in-work poverty have been tested on a data set including the total population and over a period of 30 years.

Details

International Journal of Social Economics, vol. 48 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 1 September 2022

Christopher Belford, Delin Huang, Yosri Nasr Ahmed, Ebrima Ceesay and Lang Sanyang

Climate change and its imminent threat to human survival adversely impact the agriculture sector. In an impoverished country like The Gambia, economic costs of climate change are…

2011

Abstract

Purpose

Climate change and its imminent threat to human survival adversely impact the agriculture sector. In an impoverished country like The Gambia, economic costs of climate change are colossal. This study aims to establish a computable general equilibrium (CGE) model for The Gambia’s agriculture sector to examine the effects of climate change on crops, livestock and sea-level rise.

Design/methodology/approach

This study used a CGE model with other climate change impact models to compute the impacts of climate change on The Gambia’s agriculture sector. The social accounting matrix calibrates the results from the various models, thereby generating the baseline results which exemplify a “steady-state” and policy shock results illustrating the medium- and long-term effects of climate change on the country’s agriculture sector.

Findings

The baseline results indicate the status quo showing the neglect of the agriculture sector due to limited investment in the sector. Hence, the sector is the “hardest hit” sector as a result of climate change. When the model factored in climate change in the medium term (2055) and long term (2085), the macroeconomic indicators of gross domestic product, national savings, wages, disposable income and consumer price index deteriorated, elucidating the vulnerability of the economy to climate change. The consumption of groundnuts, cattle and fish will decline by 5%, 5% and 4%, respectively, in the long term. However, the production of all agricultural commodities will decline by an average of 35% for the same period. The results for international trade show that exportation would decline while importation will increase over time. The general price level for agricultural commodities would increase by 3% in 2055 and 5% in 2085. Generally, the results manifest the severity of climate change in the agriculture sector which will have a multiplier effect on the economy. The impact of climate change would result in agriculture and economic decline causing hunger, poverty and human misery.

Originality/value

The caveat of this study revealed the nuances not captured by previous Gambian climate change studies, thus the novelty of the study.

Details

International Journal of Climate Change Strategies and Management, vol. 15 no. 3
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 7 June 2022

Arunava Narayan Mukherjee

This paper aims to study the extent of use of artificial intelligence (AI) in the modern organization; to comprehend the changing nature of future jobs in…

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Abstract

Purpose

This paper aims to study the extent of use of artificial intelligence (AI) in the modern organization; to comprehend the changing nature of future jobs in the context of application of AI; and to study the impact of AI on the economy of the country with special reference to the job market. Given the critical scenario of labor intensive Indian economy, the paper intends to show how AI shall affect rather coexist with human intelligence or labor.

Design/methodology/approach

The research on implementation of AI in different industries and its effect on job market are at a nascent stage. There is a dearth of literature. Hence, this study followed a qualitative approach to have a better understanding of the research questions as Bhattacherjee (2012) confirms that employing an interpretive paradigm (qualitative analysis as the analysis of data, e.g. data from interview transcripts) is the more productive way to study social order and that it is achieved through “subjective interpretation of participants involved, such as by interviewing different participants and reconciling differences among their responses using their own subjective perspectives”. Sample selection: The selection technique utilized is purposive sampling. The respondents in this research are the general managers and HRs from different companies. A total of 14 senior professionals from various sectors were approached for the interview out of which seven people gave their consent to take interview. Seven senior HR professionals, mainly general managers and HRs from various sectors viz. oil and gas sector, manufacturing, healthcare, construction, media, power and energy and retail were interviewed to understand how they are using AI in their respective fields. Inclusion Criteria: (1) Generally, the people covered under the research are from the decision-making level of their companies so they are in a position to give strategic perspective as well as day to day implication of implementation of AI. (2) Respondents have adequate knowledge of the respective industry to which they belong. (3) Respondents have reasonable industry of dealing with Human Resource Management and national economy as a whole assessment tool and its administration procedures. A narrative approach was adopted to have a better understanding of the research questions and comprehend their views regarding implementation of AI in their respective companies. A semi structured open ended interview was administered to steer the discussion around the research questions. The respondents were interviewed over the phone and each respondent shared their stories. Analysis of data: The narrations were then transcribed by online transcriber website otter.ai.com. The common keywords as prescribed by the website are as: AI, strategy, learning and implementation. The extracts of the discussions are noted in the next segment of the paper. As and when required this research also used secondary data from the journals, literature available in the websites to understand the implementation of AI globally.

Findings

A country where the government itself admits 90% of its workforce belongs to informal sector and conspicuously exits a multi-faceted stark digital divide (Huberman, 2001; DiMaggio et al., 2001; Guillen, 2006; Servon, 2002) wherein gap of digital divide is significant between the rural and urban India (Dasgupta et al., 2002; Nath, 2001; Singh, 2007; Mahajan, 2003; Dutta, 2003) talking of educating, applying and implementing AI seems to be “ a distant dream” but an “ambiguous ambition ”

Research limitations/implications

Prior to implementation of AI that India has to ensure, the basic hygiene factors of informal sector labor force like social security, 2008, low wages and lack of legal protection, unpaid overtime and occupational health problems, poor bargaining power, working without leave under coercion, child care issues and health ailments(for which mere legislation or statutarization is just a formality executed than taking real action) to take the majority of Indian workforce to attain the motivational factor to acquire the knowledge and skill of AI and to implement it.

Practical implications

The AI and its adoption are still at their embryonic stage in Indian companies. With the adoption of such sophisticated technology, in one side, the organizations are dreaming of efficiency, higher productivity and better organizational performance whereas on the other side requirement of changing skill sets and decreasing manpower, creating fear among the mass, which results in hard resistance against the implementation process of AI. On the other hand, lack of expertise and high cost of adoption is also hindering AI to implement in the organizations. The adoption and implementation stage of AI vary from organization to organizations, as well as functions to functions. While the marketing departments of several organizations are using advanced level of AI, there, the HR departments are using AI at the very initial stage. But it is evident from the above discussions that adoption of AI in business functions is inevitable and only it is a matter of time. With the COVID-19 pandemic this has become the utmost necessity for many organizations, particularly who works across the globe. HR partners of the businesses are also adopting AI at a fast pace to do away with the mundane works and deliver efficient services to the stakeholders. It is understood from the discourse that the prerequisite for a successful implementation of AI across the industries throughout the country, needs a concerted effort from industries, academia and government.

Social implications

The answer lies in Keynesian economics. The central tenet of which is government intervention rather investment to stabilize and progress the economy by way of spreading Internet connectivity, basic literacy and computer literacy, then only truly AI can be effective in a greater scale.

Originality/value

A study on application of artificial intelligence in the pandemic era from a wider perspective, this work is an empirical investigation into the benefits and limitations of artificial intelligence for human potential and labour -intensive pandemic ridden Indian economy.

Details

Management Matters, vol. 19 no. 2
Type: Research Article
ISSN: 2752-8359

Keywords

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