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Book part
Publication date: 20 January 2023

Colm McLaughlin

This chapter examines regulatory experimentation in relation to gender equality and the gender pay and representation gaps. The corporate sector has long promoted a voluntarist…

Abstract

This chapter examines regulatory experimentation in relation to gender equality and the gender pay and representation gaps. The corporate sector has long promoted a voluntarist ‘business case’ for equality as part of their wider agenda to promote CSR, an approach that fits within the second web of rules. However, slow progress prompted governments to introduce proactive legislative measures such as gender pay gap reporting and gender quotas. At the same time, the traditional web of joint regulation continues to be relevant with trade unions using equal pay litigation to challenge the historical undervaluation of work by low-paid women and negotiate new collective pay structures to deliver tangible benefits to low-paid women. Union litigation in the UK local authority sector and the New Zealand care sector are compared. The chapter argues that the three webs are more usefully understood as complements rather than substitutes.

Details

Protecting the Future of Work: New Institutional Arrangements for Safeguarding Labour Standards
Type: Book
ISBN: 978-1-80071-248-5

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Article
Publication date: 20 July 2021

Laurence Ferry, Guanming He and Chang Yang

The authors investigate how executive pay and its gap with employee pay influence the performance of Thailand tourism listed companies.

Abstract

Purpose

The authors investigate how executive pay and its gap with employee pay influence the performance of Thailand tourism listed companies.

Design/methodology/approach

The authors manually collect data on the executives' and employees' remunerations for Thailand tourism listed companies and use the data for the authors’ OLS regression analysis. To check the robustness of the results to potential endogeneity issues, the authors employ the two-stage least-squares regression analysis and the impact threshold for a confounding variable approach.

Findings

The authors find that short-term executive compensation enhances firm performance, and that long-term executive compensation reduces the likelihood of unfavorable corporate performance. The authors also find that the gap in short-term pay between executives and employees has an inverted-U relation with firm performance.

Research limitations/implications

This study suggests that higher executive pay relative to employee pay could encourage executives to work hard to improve corporate performance, but that too large a pay gap between executives and employees could impair employees' morale and harm firm performance.

Practical implications

It is important for tourism companies to not only pay executives well but also avoid too large a pay gap between executives and employees.

Social implications

This study implies the important role of compensation design in contributing to employee engagement and good performance for tourism firms.

Originality/value

This study sheds light on agency problems between executives and employees in tourism companies and provides new evidence and insights on compensation research in the tourism sector in emerging markets.

Details

Journal of Hospitality and Tourism Insights, vol. 6 no. 1
Type: Research Article
ISSN: 2514-9792

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Article
Publication date: 6 August 2018

Xuan Pham, Laura Fitzpatrick and Richard Wagner

The purpose of this paper is to examine why the gender pay gap (GPG) – with its significant social costs generated through disadvantaging half of the population – persists in the…

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Abstract

Purpose

The purpose of this paper is to examine why the gender pay gap (GPG) – with its significant social costs generated through disadvantaging half of the population – persists in the USA despite decades-long efforts toward eradication.

Design/methodology/approach

A social provisioning approach, rooted in heterodox economics, is used to examine institutions that create and maintain the US GPG. The GPG is not a natural phenomenon, and, thus, must be examined within a specific social and historical context.

Findings

The analysis finds that the institutions of capitalism and patriarchy have created and perpetuated the GPG; however, mainstream economic theory does not consider these institutions and goes as far as explaining away the problem. Current US policies are formulated from this mainstream economic perspective, and, thus, are inherently flawed. The authors propose a reorientation toward a social provisioning theoretical perspective to analyze the GPG, which provides a more meaningful and practical foundation for policy formulation.

Originality/value

This paper provides a comprehensive examination of effective and ineffective theories and policies for addressing the GPG. Additionally, the authors provide concrete policy recommendations to eradicate the GPG.

Details

International Journal of Sociology and Social Policy, vol. 38 no. 9/10
Type: Research Article
ISSN: 0144-333X

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Book part
Publication date: 23 January 2023

David Neumark and Giannina Vaccaro

Several studies find that there is little sex gap in wages at labor market entry, and that the sex gap in wages emerges (and grows) with time in the labor market. This evidence is…

Abstract

Several studies find that there is little sex gap in wages at labor market entry, and that the sex gap in wages emerges (and grows) with time in the labor market. This evidence is consistent with (i) there is little or no sex discrimination in wages at labor market entry, and (ii) the emergence of the sex gap in wages with time in the labor market reflects differences between women and men in human capital investment (and other decisions), with women investing less early in their careers. Indeed, some economists explicitly interpret the evidence this way. We show that this interpretation ignores two fundamental implications of the human capital model, and that differences in investment can complicate the interpretation of both the starting sex gap in wages (or absence of a gap), and the differences in “returns” to experience. We then estimate stylized structural models of human capital investment and wage growth to identify the effects of discrimination (or other sources of a starting pay gap) and differences in human capital investment.

Article
Publication date: 5 October 2010

Parbudyal Singh and Ping Peng

The purpose of this paper is to examine the evolution, implementation and effectiveness of the Pay Equity Act in Ontario, Canada. Given that this Act is considered by many as the…

2515

Abstract

Purpose

The purpose of this paper is to examine the evolution, implementation and effectiveness of the Pay Equity Act in Ontario, Canada. Given that this Act is considered by many as the world's most progressive equal pay for work of equal value legislation, there are important implications for policy globally.

Design/methodology/approach

Through a review of relevant documents and the literature, the paper examines the need for the Pay Equity Act in Ontario, its origins, and with two decades of experience, analyze its effectiveness. A case study is also used to assess related procedures and effects of the law.

Findings

In spite of its limitations and the wide pay gap that still exists between men and women, many female workers have benefited from Ontario's progressive Pay Equity Act. In targeting the discriminatory aspect of women's work evaluations, the Act has resulted in pay increases for thousands of women, especially in the public sector.

Practical implications

There are many practical and social implications for jurisdictions across the globe, as they try to grapple with gender pay equities. Policy makers can learn from the successes and challenges experienced in Ontario. Pay equity legislation will unlikely achieve any significant progress in reducing the wage gap if it relies on workers to complain about the inequity in their pay. A proactive pay equity law, such as that in Ontario, will force employers to make more focused efforts to deal with gender pay discrimination. Ontario's bold “experiment” with pay equity holds valuable lessons for jurisdictions globally.

Originality/value

While there has been some research on the Ontario Pay Equity Act, there is a paucity of scholarly work that examines the details of the pay system that the Act has spawned. There is also little work in assessing the effectiveness of the legislation.

Details

Gender in Management: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1754-2413

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Abstract

Details

Feminist Activists on Brexit: From the Political to the Personal
Type: Book
ISBN: 978-1-80043-421-9

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: 20 March 2007

Sumati Srinivas

Although the labor force participation rates for women in the USA have steadily risen during the last three decades, the gender pay gap has not decreased significantly since 1992…

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Abstract

Purpose

Although the labor force participation rates for women in the USA have steadily risen during the last three decades, the gender pay gap has not decreased significantly since 1992. In fact, there is evidence that it actually widened during the 1990s. This paper seeks to present a social economics explanation of this phenomenon. Mainstream economic explanations for the anomalous behavior of the gender pay gap in the USA in recent years usually involve increasing numbers of women opting for part‐time jobs. Recognizing the importance of social change in explaining certain features of the labor market, this paper aims to explore whether a broad change in social attitudes towards women's roles may form the basis for such phenomena.

Design/methodology/approach

A unique set of questions from the National Longitudinal Survey of Youth which asks the same respondents about their attitudes towards “traditional” roles for women in 1987 and again in 2004 allows measurement of the change in attitudes in individual respondents. The survey population is then partitioned into those whose attitudes towards women's roles became “more traditional” and “less traditional,” and the gender pay gap, as well as other characteristics, of each sub‐population is analyzed.

Findings

Of respondents who reported a significant change in their attitude towards women's roles between 1987 and 2004, a larger number of respondents became more traditional in their views, agreeing with statements such as “a woman's place is in the home.” A majority of those with college or professional degrees became more traditional in their attitudes, whereas a majority of those with a high school education became less traditional. Being a woman was significant and negatively correlated with an increase in pay among respondents who became more traditional, whereas no significant correlation was observed among those who became less traditional in their social attitudes.

Originality/value

The results indicate that social attitudes towards women's roles in the USA may have become more traditional during the 1990s, which is a new finding. The correlation found between social attitudes and women's pay provides an insight into why the gender pay gap persists despite the greatly increased labor force participation rates of women.

Details

International Journal of Social Economics, vol. 34 no. 4
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 5 December 2023

Anthony Orji and Emmanuel O. Nwosu

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Details

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

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Article
Publication date: 29 June 2020

Yan Tao, Gaoyan Xu and Hong Liu

This paper extends the current understanding of the retrenchment-–turnaround relationship in declined companies by introducing a compensation gap view. It argues that the…

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Abstract

Purpose

This paper extends the current understanding of the retrenchment-–turnaround relationship in declined companies by introducing a compensation gap view. It argues that the effectiveness of the retrenchment strategy is contingent on reducing the executive-employee compensation gap in the turnaround process.

Design/methodology/approach

Drawing from a two-stage turnaround model and insights from the literature on executive-employee compensation gap, we develop and test a theoretical model that explains how five attributes, which refer to executive-employee compensation gap, asset retrenchment, cost retrenchment, ownership and size, affect the outcome of the organizational turnaround. This paper uses the fuzzy-set qualitative comparative analysis (fsQCA) method and based on the samples of 112 listed companies that experience the decline between 2005 and 2013.

Findings

This paper concludes two valid causal paths and finds that small companies with small executive-employee compensation gap have a higher likelihood of successful turnaround when they implement cost or asset retrenchment actions. As for large state-owned companies, they should reduce the costs and maintain a small executive-employee compensation gap. An excessive compensation gap can be problematic, which could impair the organizational ability to cope with adversity and decline.

Research limitations/implications

First, this paper taps the vital role of employees in the turnaround process besides the mainstream “organizational decline-layoffs” logic, which hints a new human resource management strategy when organizations are facing decline. Second, this paper reveals the theoretical linkage between pay dispersion, internal stakeholder and organizational resilience. Third, as a methodological contribution, we introduce fsQCA, overcoming the shortcomings of turnaround strategy research with case and regression analysis and breaking through the paradigm of “specific factor-turnaround.”

Practical implications

Organizational turnaround is a systematic process that constitutes multiple factors together. When organizations take the asset retrenchment to stop bleeding, reducing the executive-employee compensation gap will help enhance employee's cognition of organizational values and strategic goals, eliminate feelings of exploitation in retrenchment implementation and thus effectively promote turnaround. This paper also provides a basis for executive compensation restrictions and re-examines pay dispersion and economic inequality.

Originality/value

This study sheds some light on the importance of the executive-employee compensation gap in retrenchment strategy and contributes to both organizational turnaround and pay dispersion theories. Also, it reveals the theoretical linkage between internal stakeholders, organizational resilience and long-term orientation.

Details

Journal of Organizational Change Management, vol. 33 no. 5
Type: Research Article
ISSN: 0953-4814

Keywords

21 – 30 of over 80000