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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.

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.

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.

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.

The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’ willingness-to-pay (WTP) for new products and provide suggestions on the remanufacturing mode selection for the original equipment manufacturer (OEM).

This study considers three remanufacturing modes, i.e. in-house, outsourcing and authorization modes. By establishing and comparing decision models of three modes from the perspectives of profit, consumer surplus and environment, the optimal remanufacturing mode is discussed.

The results suggest that if the OEM’s remanufacturing capability is high, the in-house mode brings to the highest environmental performance, OEM’s profit and consumer surplus. Otherwise, the outsourcing mode (authorization) is the best benefit to environment (consumers if the unit production cost of new products is not too high). As for the preference of two decision-makers to outsourcing and authorization modes, if the difference of consumers’ WTP for new products is low, the OEM prefers the outsourcing mode; otherwise, the OEM prefers the authorization mode. The preference of the third-party remanufacturer (TPR) to remanufacturing mode is affected by consumers’ WTP for remanufactured products, WTP difference for new products and remanufacturing quality level standard.

These results can provide operational insights into how to select remanufacturing mode when the quality of EOL products is uncertain and consumers’ WTP for new products is different under three remanufacturing modes.

This paper is among the first to investigate the joint effects of EOL products’ uncertain quality and differential consumers’ WTP for new products on the operational strategies and performance under different remanufacturing modes.

This paper aims to explore the relationship between gender occupational intensity and wages in the Northern Triangle of Central America using national surveys carried out in 2014.

A harmonized occupational classification at the -digit level is built with the objective of analyzing the occupational distribution across countries. Then, quantile regressions (QRs) are estimated to explore in detail which factors are affecting the wages of both females and males; in particular, this paper pays special attention to female occupational intensity (the share of females within each occupation).

The comparative analysis suggests that women are overrepresented in certain occupations, and they are much more likely to be working in part-time jobs than men in all countries. Furthermore, findings reveal that working in female-dominated occupations has a negative effect on wages along the distribution across countries. However, the effect of this variable is higher at the lower quantile of the distribution for women, especially in El Salvador and Honduras.

This paper first proposes a new typology of occupations, which allows a consistent and comparable analysis of the occupational structure. The results then provide a picture to address gender occupational intensity and its links with wages. Further, the characteristics of the labor market and differences in trends across these countries suggest that this topic requires challenging research for the region.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2021-0165

This study investigated the gender wage gap in Nigeria by analysing two waves of household surveys (in 2003–2004 and 2018–2019) in order to understand the dynamics or polarisation of the labour market in Nigeria in terms of the gender wage gap over time.

The study applied an extension of Oaxaca–Blinder decomposition that relies on the re-centred influence function (RIF) regressions to analyse the gender wage gap at all points along the wage distribution.

The results unambiguously show that there is a significant gender wage gap in Nigeria at all points along the wage distribution, such that for the two surveys used and after nearly two decades, men still earn more than women. That is, the log wage difference between males and females is statistically significant at all points between the 10th and the 90th quantiles. In 2003–2004 period, the authors found that most of the wage difference was significantly accounted for by the wage structure effect, whilst the composition effect was negative and only significant at the bottom of the wage distribution. Since the 2018–2019 period, the authors found that there has been a visible change such that most of the gender wage gap is now accounted for by the composition effect at all points along the wage distribution. Another interesting finding is that there has been a general decline in the gender wage gap along the entire wage distribution, such that inequality was higher in 2003–2004 than in 2018–2019. This decline is bigger at the top than at the bottom of the wage distribution. The authors also found that, contrary to some of the studies on the wage gap, the raw gaps for the two surveys appear to show inverted U-shape, but the gap has fallen quickly since the 2018–2019 period. Thus, the authors found strong evidence of a “sticky floor” compared to a “glass ceiling” effect in both periods, and this becomes more pronounced over time. In terms of the contributions of individual covariates on gender pay gap in Nigeria, the authors found that urban residence, unionisation, education and occupation variables exhibit major influence. However, the effects of covariates on the composition and wage structure components of the wage gap have changed over time.

The major policy implication of these findings is that to address the gender wage gap in Nigeria, policy should focus more on how labour is rewarded and improving human capital for women.

This study is a novel paper in Nigeria that has investigated the gender wage gap in Nigeria by extending the focus of literature in three ways. First, the authors applied an extension of Oaxaca–Blinder decomposition that relies on the RIF regressions to analyse the gender wage gap at all points along the wage distribution. Second, the authors used sample selection bias to account for the non-randomness of participation in wage employment. And third, the authors applied similar analysis to two waves of household surveys (in 2003/2004 and 2018/2019) in order to understand the dynamics or polarisation of the labour market in Nigeria in terms of the gender wage gap over time.

The purpose of this viewpoint is to comment on the implications of the Financial Reporting Council’s (FRC) Review and Consultation Documents expected to update regulation governing the determination/reporting of executive remuneration in UK stock market listed companies. Practical points from actors involved in executive remuneration decision-making/reporting are presented, set within the context of neo-institutional theory.

This qualitative research systematically analyses UK Corporate Governance Codes, the FRC’s recent Review/Consultation and peer-reviewed published studies of executive pay determination based on in-depth interviews with non-executive directors, institutional investors, executive pay advisers and human resources (HR) professionals.

Further regulation, while providing coercive influence over executive remuneration decision-making, is likely to lead to only limited change in processes and reporting due to benchmarking, the make-up of Remco membership and shareholders' preferences. Mimetic and normative isomorphic forces work against coercive isomorphism leading to resistance to change as decision-makers strive to safeguard their social status/reputations.

Reviewing executive remuneration package components and paying attention to company strategy, sustainability and values in pay determination are welcomed but recognised as difficult to achieve. Drawing upon a wider range of information sources/voices can assist in broadening the discussion. HR professionals can help widen stakeholder input to executive remuneration decision-making.

The authors’ viewpoint is grounded in peer-reviewed empirical data that draws directly upon the views/experiences of executive remuneration decision-makers to identify problems in adhering to FRC recommendations for change. The authors extend the meta-theoretical perspective of neo-institutional theory – specifically institutional isomorphism – as providing explanatory and predictive power to understand executive pay decision-making.

The purpose of this study is to extend the pay communication literature by examining the relationship between pay secrecy and turnover intentions with the inclusion of mediators. This study further analyzes the influence pay secrecy and organizational trust have on three key employee attitudinal variables that are directly related to turnover intentions.

The data were collected from participants that were recruited using Mechanical Turk, yielding a sample size of 496. Structural equation modeling (SEM) was used to analyze the hypotheses.

Findings demonstrate pay secrecy positively influences turnover intentions. This relationship is double-mediated by organizational trust with organizational cynicism, organizational disidentification, and job embeddedness. All hypotheses were supported.

This research shows that pay secrecy has negative effects on employee attitudes and behaviors. Based on the findings of this study, organizations should take steps toward pay openness to avoid employees becoming distrustful and more cynical of the organization, boost feelings of being embedded, and deter organizational disidentification.

This study contributes to the pay communication literature by further explaining the pay secrecy–turnover intentions relationship with the inclusion of mediators that have shown mixed results or have not been previously analyzed to the researchers' knowledge. Specifically, organizational trust, organizational cynicism, organizational disidentification, and job embeddedness were examined as mediators. Previous research has shown mixed results for the influence pay secrecy has on organizational trust, with some studies demonstrating pay secrecy to have a positive effect and others a negative effect. This study demonstrates support for pay secrecy's negative relationship with organizational trust.

The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses the Islamic perspectives on minimum wage and examines contemporary challenges and intricacies in its application.

This study uses thematic analysis to create the conceptual framework, drawing upon a review of pertinent literature such as academic papers, books and articles published up to 2023.

The framework encompasses various categories, namely, employee characteristics, job characteristics, market factors, compensation practices and Islamic principles. Each category consists of multiple variables. The resulting framework offers a holistic and ethically grounded methodology for wage determination, aligning with both Islamic and conventional perspectives. This study notes the absence of a universally agreed-upon minimum wage. Islamic economics faces challenges due to the unclear application of principles, limited awareness, legal constraints and a lack of empirical evidence on wage systems, along with complexities in their implementation.

The paper’s limited scope focuses solely on the Islamic perspective on wage determination, without comparing it to the conventional viewpoint. This may have implications for future research.

The insights on Islamic principles and wage determination guide scholars and policymakers interested in promoting just and equitable wages.

This study is distinct in its integration of various factors to propose an all-encompassing framework for wage determination, rooted in the Quran and principles, while also reinforcing the framework with conventional theories. Additionally, it adds to the growing body of literature by investigating the Quran’s stance and principles on minimum wage, as well as discusses the challenges involved in implementing an Islamic approach to wage determination, which has received limited attention in Islamic literature.

This study seeks to estimate union wage effect in the public and private sectors of Ghana, respectively. It also seeks to ascertain whether the union wage effect in the two sectors varies.

The authors use data from the Ghana Living Standards Survey 6 (GLSS 6, 2012/2013) and Ghana Labour Force Survey (GLFS, 2015). In terms of estimation technique, the authors employ the Blinder–Oaxaca decomposition technique to estimate union wage effect in public and private sectors, respectively.

The findings indicate that union wage effect in the public sector is positive and higher relative to that of the private sector.

The findings imply that strict enforcement of Section 82 of Labour Act 2003 (Act 651) will curb the political influence of public sector unions over their employer (Government).

This research paper has not been presented to any journal for publication and it is the authors' original work.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0045

Much prior work involving director incentives and corporate behaviour has been focussing on their absolute dollar value or the intrinsic value and generated mixed findings. Comparison theories, however, suggest that the relative value of an incentive may be the main drive for individual performance. This study attempts to investigate the role of director relative pay in promoting the board’s intervention with unrelated diversification decisions.

The analysis uses data from firms operating in more than one segment during the period from 1999 to 2019. Data were obtained from WRDS databases. Ordinary least squares (OLS) regression analysis and the two-stage system generalized method of moments (GMM) were run to test the hypotheses. To test the robustness of the findings, alternative proxies for the key independent variables were used in separate analyses.

The results support the hypothesis that unrelated diversification negatively impact firm performance, while higher director relative pay will help reduce unrelated business diversification. The absolute director pay, however, has no significant impact on corporate strategic choices. The results also highlight the moderating effect of director overcompensation. Director overcompensation will cancel out the impact of relative director pay on unrelated diversification.

This study takes a fresh theoretical perspective by framing the investigation using the dimensional comparison theory to address the single untended comparison framework in the director pay structure – the intra-individual framework. It is the first to investigate the role of director relative pay in corporate strategic choices. The findings support the contention that the relative value of the incentive is an important indicator of the effectiveness of the pay.

The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC, pay a premium to CEOs with different skill sets (general or specific); and whether a pay premium mitigates the potential for CEO turnover.

This study uses a sample of 5,305 firm-year observations on a data set drawn from companies listed on the Australian Securities Exchange for the period 2007 to 2014. The authors use ordinary least squares as well as logit regression techniques to test the formulated hypotheses. Difference in difference and propensity score matching techniques were undertaken to address the endogeneity concerns.

The findings show that firms with a RC pay a higher total remuneration to CEOs compared to firms without a RC. Furthermore, firms with a RC, value and reward CEOs with general skills by paying a premium not offered to CEOs with industry-specific skills. Paying a premium, in turn, mitigates CEO turnover by strengthening the CEO’s commitment to the organisation.

The study helps us to understand the critical role played by the RC in the remuneration of CEOs. The findings show that RCs act as an effective governance mechanism to deal with issues of executive remuneration and to retain skilled CEOs. Additionally, CEOs who acquire and develop general managerial skills will be able to extract higher pay from improved bargaining power. The findings will be of relevance to shareholders, regulators and company management who have an interest in executive pay and performance.