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Article
Publication date: 3 June 2020

Marco Túlio Aniceto França, Gustavo Saraiva Frio and Mariza Bethanya Dalla Vecchia Korzeniewicz

The aim of this study is to evaluate the wage gap between men and women who seek self-employment in Brazil, whether because they want to become entrepreneurs out of necessity or…

Abstract

Purpose

The aim of this study is to evaluate the wage gap between men and women who seek self-employment in Brazil, whether because they want to become entrepreneurs out of necessity or because of the flexible hours.

Design/methodology/approach

The data used are from the 2015 National Household Sample Survey (PNAD) and the methods are the ordinary least squares (OLS) for the Mean and the unconditional quantile regression (RIF-regression) for the distribution of gains of both genders, both associated with the Oaxaca–Ransom decomposition in order to separate the differential between the part explained by attributes and the unexplained part.

Findings

The main results show that women earn less than men in the mean and throughout the distribution. The average difference is 27.79%, varying between 19.24 and 48.26% in the distribution. The inclusion of occupational variables shows that the glass door phenomenon exists even in self-employment, that is, women choose occupations with lower incomes.

Originality/value

Stimulating self-employment has been an alternative policy for the insertion of women in the labor market. This is the first study on the wage gap in self-employment in the Brazilian labor market. The presence of wage differentials among self-employed men and women throughout the distribution may point to the need for specific policies that not only target the mean. These policies would be related to sticky floor and to the glass ceiling. Another potential problem concerns the so-called glass door–women access the labor market via professions that pay less, otherwise, the problem points to occupational segregation against women.

Peer Review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2019-0312

Details

International Journal of Social Economics, vol. 47 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 25 January 2023

Joseph Deutsch, Pundarik Mukhopadhaya, Jacques Silber and Jing Yang

To explore income inequality in urban China, this paper investigates disparities between- and within-urban locals and rural migrants from 2002 to 2013, using three waves of the…

Abstract

To explore income inequality in urban China, this paper investigates disparities between- and within-urban locals and rural migrants from 2002 to 2013, using three waves of the China Household Income Project (CHIP) data. While the existing literature concentrates on the wage disparity between these two groups, our results show that the Gini among the migrants increased by 17.86% between 2007 and 2013 and that among the locals increased by 15.54% from 2002 to 2007. The urban–migrant average income gap decreased during the whole period mainly due to higher growth in migrants’ average income. Estimates based on Mincerian earnings functions for both groups reveal the significant role of the education, occupation and type of contract in determining the within-group inequality. In addition, using a recentred influence function (RIF), we observe that short-term and other types of contracts, duration of the job, in-system ownership, marriage and skill have inequality-enhancing effects for migrants. The variation of skills has a larger impact on the income disparity among migrants than on that among urban locals. The RIF-based Blinder–Oaxaca decomposition of the mean difference of incomes shows that labour market discrimination between the two groups is not significant; however, both pure explained and unexplained differences are significant when applying the RIF decomposition to the variance of the logarithms of incomes. While the type of contract significantly reduces the pure explained difference between migrants and urban locals, occupation has a positive impact on this difference between these two groups. The heterogenity analysis shows that the factors influencing incomes in these two groups are different. We recommend labour market intervention to reduce unreasonable occupational and sectoral disparities, especially in the net inflow provinces, to mitigate urban inequality in China effectively.

Details

Mobility and Inequality Trends
Type: Book
ISBN: 978-1-80382-901-2

Keywords

Article
Publication date: 30 May 2022

Victor Rudakov, Margarita Kiryushina, Hugo Figueiredo and Pedro Nuno Teixeira

The aim of the research is to estimate the level of the early career gender wage gap in Russia, its evolution during the early stages of a career, gender segregation and…

Abstract

Purpose

The aim of the research is to estimate the level of the early career gender wage gap in Russia, its evolution during the early stages of a career, gender segregation and discrimination among university graduates, and to identify factors which explain early career gender differences in pay. Special emphasis is placed on assessing the contribution of horizontal segregation (inequal gender distribution in fields of studies and industries of employment) to early-career gender inequality.

Design/methodology/approach

The study is based on a comprehensive and nationally representative survey of university graduates, carried out by Russian Federal State Statistics Service in 2016 (VTR Rosstat). The authors use Mincer OLS regressions for the analysis of the determinants of gender differences in pay. To explain the factors which form the gender gap, the authors use the Oaxaca-Blinder and Neumark gender gap decompositions, including detailed wage gap decompositions and decompositions by fields of study. For the analysis of differences in gender gap across wage distribution, quantile regressions and quantile decompositions based on recentered influence functions (RIFs) are used.

Findings

The study found significant gender differences in the early-career salaries of university graduates. Regression analysis confirms the presence of a 20% early-career gender wage gap. This gender wage gap is to a great extent can be explained by horizontal segregation: women are concentrated in fields of study and industries which are relatively low paid. More than half of the gender gap remains unexplained. The analysis of the evolution of the gender wage gap shows that it appears right after graduation and increases over time. A quantile decomposition reveals that, in low paid jobs, females experience less gender inequality than in better paid jobs.

Social implications

The analysis has some important policy implications. Previously, gender equality policies were mainly related to the elimination of gender discrimination at work, including positive discrimination programs in a selection of candidates to job openings and programs of promotion; programs which ease women labour force participation through flexible jobs; programs of human capital accumulation, which implied gender equality in access to higher education and encouraged women to get higher education, which was especially relevant for many developing countries. The analysis of Russia, a country with gender equality in access to higher education, shows that the early career gender gap exists right after graduation, and the main explanatory factor is gender segregation by field of study and industry, in other words, the gender wage gap to a high extent is related to self-selection of women in low-paid fields of study. To address this, new policies related to gender inequality in choice of fields of studies are needed.

Originality/value

It has been frequently stated that gender inequality appears either due to inequality in access to higher education or after maternity leave. Using large nationally representative dataset on university graduates, we show that gender equality in education does not necessarily lead to gender equality in the labour market. Unlike many studies, we show that the gender gap in Russia appears not after maternity leave and due to marital decisions of women, but in the earliest stages of their career, right after graduation, due to horizontal segregation (selection of women in relatively low-paid fields of study and consequently industries).

Open Access
Article
Publication date: 22 March 2023

Thong Le Pham, Nghiem Tan Le, Nhi Nhat Phuong Ho and Thanh Cong Le

This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.

642

Abstract

Purpose

This study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.

Design/methodology/approach

The present paper applies the “recentered influence functions (RIF)” in “Oaxaca-Blinder (OB)” type decomposition as proposed by Firpo et al. (2018) to allow for the flexible distribution of the outcome variables and the non-randomness of non-farm employment that violates the classical linearity assumption.

Findings

Non-farm households have significantly higher per capita consumption expenditure than farm households for the entire distribution. The gap in expenditure is large at low percentiles and narrowing with higher percentiles. At 10th percentile, the gap is estimated at 27.1%, but it is decreasing to 11.1% at 90th percentile. Most of the gaps are explained by the differences in the observed characteristics between farm and non-farm households such as ethnicity, education, income, internal transmittances and household composition. Non-farm households are endowed with more productive factors that result in higher per capita consumption expenditure.

Originality/value

Gaps in ethnicity and education are found to be key predictors of the inequality in consumption expenditures between farm and non-farm households, then, government policies that are aimed at increasing access to non-farm employment and education for ethnic minorities and for rural poor households are pathways to improve rural household welfare and hence reduce inequality.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 23 March 2021

Dao Dinh Nguyen, Xinran Zhang and Trang Huyen Nguyen

The objective of this study is to estimate the gender wage gap in Vietnam and its rural and urban areas, especially with the presence of foreign firms.

Abstract

Purpose

The objective of this study is to estimate the gender wage gap in Vietnam and its rural and urban areas, especially with the presence of foreign firms.

Design/methodology/approach

The authors use cross-sectional data from three rounds of the Vietnam Household Living Standards Survey (VHLSS 2008, 2012, and 2016) to investigate this issue. The unconditional quantile regression and Oaxaca–Blinder (OB) decomposition are used in this article.

Findings

The article finds the gender wage gap favouring men, especially in higher quantiles of the wage distribution. The gap in urban Vietnam was higher than in rural areas. The OB decomposition indicates that gender wage gap is mainly driven by gender discrimination. The differences in return to participation in foreign companies only contributed significantly and positively to such a gap in some models. It suggests that the gap in those models is affected by gender discrimination in employment opportunities in foreign companies. Regarding the endowment effect, some models provide the significantly negative impacts of foreign firms on gender wage inequality.

Originality/value

The study suggests that policies to reduce the gender wage gap should pay more attention to foreign firms, especially at higher wage classes.

Details

Journal of Economic Studies, vol. 49 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 13 September 2022

Valentina Ferri, Thaís García-Pereiro and Roberta Pace

In this article, the authors study the gender pay-gap (GPG) among graduates in Italy (2011 cohort) who were employed four years after graduation. The authors focus on individuals…

Abstract

Purpose

In this article, the authors study the gender pay-gap (GPG) among graduates in Italy (2011 cohort) who were employed four years after graduation. The authors focus on individuals who are new entering in the labour market or who match a low level of experience with a high level of education.

Design/methodology/approach

Aimed at estimating the amount of the differential between male and female average wages, the authors have applied the Oaxaca–Blinder (O–B) decomposition. The results identify the presence of a GPG at the very beginning of graduates’ careers given that, shortly after graduation, women receive lower salaries than men, even after controlling for several characteristics (individual, academic, job and local labour market). The authors completed the analysis with the reweighted O–B decomposition using the recentered influence function (RIF) and the Juhn, Murphy and Pierce and Machado and Mata decomposition approaches.

Findings

The results show that the GPG is already present at the very beginning of graduates’ careers, and it increases when correcting for women’s lower level of participation in the labour market. The authors also identified sticky floor and the glass ceiling effects due to the existence of a relevant high GPG both at the bottom and the top of the graduates’ wage distribution.

Originality/value

By focussing attention particularly on graduates, this paper adds to the existing literature a deeper understanding not only of individuals who have recently entered the labour market, but also those who are highly skilled but have little on-the-job experience. In fact, the authors are looking at a particular sample (graduates who are all transitioning from university to work during the same period) with small heterogeneity which allows the authors to compare very similar young men and women graduates and gain a deeper understanding of GPGs in early careers while controlling for confounding and hidden sources of variability.

Article
Publication date: 24 September 2020

Magno Rogério Gomes, Marina Silva da Cunha, Solange de Cássia Inforzato de Souza and Paulo Jorge Reis Mourão

This article aims to analyze the workers' probabilities of following their parents’ occupational legacy and whether these individuals are paid differently compared to those who…

Abstract

Purpose

This article aims to analyze the workers' probabilities of following their parents’ occupational legacy and whether these individuals are paid differently compared to those who opted for occupations different from their parents, in Brazil.

Design/methodology/approach

To that end, the occupational legacy probability equation was estimated as the quantile wage equations with sample selection bias correction and the wage decomposition for Brazil from the microdata of the National Household Sample Survey (PNAD) of 2014. It was found that families have a strong influence on the process of choosing the careers of their children. The average probability of a young person following the occupational legacy of their parents was 41.63%. This percentage is different when analyzing different groups of individuals, such as being male or female, being in a traditional or single parent family, being in an income household lower or higher per capita.

Findings

The results also confirm the hypothesis that workers who tend to follow the occupational legacy have lower wages than individuals who choose other occupations and that this may cause a “poverty trap” since the lower the salary quantile, the stronger the “trap” as economically disadvantaged young people tend to follow in their parents' footsteps and to contribute to family income they face a tradeoff, opt between work or study, which ends up disrupting their education and forcing young people to entering the job market early, performing secondary occupations with lower income and arduous work, generating a “vicious cycle of poverty”.

Research limitations/implications

Given the database, we are comprised to its most recent version.

Practical implications

This is the first work on Latin American problem of occupational legacy.

Originality/value

This is the first work on Latin American problem of occupational legacy.

Details

International Journal of Manpower, vol. 42 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 22 May 2023

Emanuela Ghignoni and Francesco Pastore

After the decision of the Egyptian government to adhere to the Equal Pay International Coalition in 2020, a great deal needs to be done to guarantee ‘equal pay for equal work’…

Abstract

Purpose

After the decision of the Egyptian government to adhere to the Equal Pay International Coalition in 2020, a great deal needs to be done to guarantee ‘equal pay for equal work’. The authors provide a comprehensive, in-depth, up-to-date analysis of the gender wage gap in Egypt, as well as its evolution over the last 20 years, disaggregated by public and private sector. The authors also provide an analysis of the cultural determinants of Egypt's low female participation.

Design/methodology/approach

The authors apply the Oaxaca-Blinder decomposition (with sample selection) to assess the gender wage gap at the mean of the wage distribution in the public and private sector. The authors also implement a re-centred influence function decomposition to assess the extent of ‘discrimination’ along the wage distribution in both sectors. An inverse-probability-weighted regression adjustment procedure is used to assess the joint impact of gender and firm-ownership. A female participation equation taking into account gender equality attitude is provided.

Findings

The authors find a sizable and increasing gender wage gap in the private sector almost entirely due to ‘discrimination’. The authors also find evidence of a sticky floor in the private sector and a glass ceiling in the public one. Cultural barriers play a major role in determining female participation.

Originality/value

This is the first paper on the evolution of gender equality in Egypt that takes into account the effect of the 'Arab Spring’ of 2011. To the best of the authors’ knowledge, this is also the first time that an IPWRA procedure is applied to study the interaction effect of gender and firm-ownership.

Details

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

Keywords

Book part
Publication date: 27 August 2016

Yang Wang, Nora Lustig and Otavio Bartalotti

Between 1995 and 2012, the wage distribution of male workers in Brazil shifted to the right and became less dispersed. This paper attempts to identify the reasons for that…

Abstract

Between 1995 and 2012, the wage distribution of male workers in Brazil shifted to the right and became less dispersed. This paper attempts to identify the reasons for that movement in male wage distribution, focusing on the impact of education expansion on wage distribution. The Oaxaca-Blinder (OB) and Recentered Influence Function (RIF) decomposition results show that both changes in returns on skills and upgrades in the composition of work skills contribute to increases in the average wage and wages at the 10th and 50th percentiles. The shifts in returns to skills had a decreasing impact on wages at the 90th percentile and are identified as the primary force reducing wage inequality. Education expansion had an equalizing impact on wage distribution, primarily through the decline in return to education.

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

Book part
Publication date: 27 August 2016

Carlos Gradín

We investigate the reasons why income inequality is so high in Spain in the EU context. We first show that the differential in inequality with Germany and other countries is…

Abstract

We investigate the reasons why income inequality is so high in Spain in the EU context. We first show that the differential in inequality with Germany and other countries is driven by inequality among households who participate in the labor market. Then, we conduct an analysis of different household income aggregates. We also decompose the inter-country gap in inequality into characteristics and coefficients effects using regressions of the Recentered Influence Function for the Gini index. Our results show that the higher inequality observed in Spain is largely associated with lower employment rates, higher incidence of self-employment, lower attained education, as well as the recent increase in the immigration of economically active households. However, the prevalence of extended families in Spain contributes to reducing inequality by diversifying income sources, with retirement pensions playing an important role. Finally, by comparing the situations in 2008 and 2012, we separate the direct effects of the Great Recession on employment and unemployment benefits, from other more permanent factors (such as the weak redistributive effect of taxes and family or housing allowances, or the roles of education and the extended family).

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

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