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Article
Publication date: 2 January 2024

Kenta 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.

Details

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

Keywords

Book part
Publication date: 30 December 2004

Cynthia L. Gramm and John F. Schnell

Traditionally, hiring indefinite duration contract employees has been the dominant method used by U.S. organizations to staff their labor needs. Indefinite duration contract…

Abstract

Traditionally, hiring indefinite duration contract employees has been the dominant method used by U.S. organizations to staff their labor needs. Indefinite duration contract employees, hereafter referred to as “regular” employees, have three defining characteristics: (1) they are hired directly as employees of the organization whose work they perform; (2) the duration of the employment relationship is unspecified, with a mutual expectation that it will continue as long as it is mutually satisfactory; and (3) the employment relationship provides ongoing – as opposed to intermittent – work. When their demand for labor increases, organizations staffed exclusively by regular employees can respond by having their employees work overtime or by hiring additional regular employees. Conversely, when their demand for labor decreases, such organizations can either maintain “inventories” of excess regular employees or reduce labor inputs by laying-off or reducing the work hours of regular employees.

Details

Advances in Industrial & Labor Relations
Type: Book
ISBN: 978-1-84950-305-1

Open Access
Article
Publication date: 1 March 2023

Chiara Natalie Focacci and François Pichault

According to Sen's theoretical framework of capability (1985), individuals reach their full potential once they have the freedom, intended as the set of functionings at their…

1074

Abstract

Purpose

According to Sen's theoretical framework of capability (1985), individuals reach their full potential once they have the freedom, intended as the set of functionings at their disposal, to do so. However, many critiques have been developed against the lack of embeddedness of the capability approach in social and political relations and structures. In this article, the authors investigate the influence of three institutional contexts (Belgium, the Netherlands and France) on the respective work-related functionings of self-employed and regular workers, with a focus on human capital investment and institutional support offered to them.

Design/methodology/approach

Data from the European Working Conditions Survey (EWCS) are used to highlight similarities and differences in building work-related functionings for regular and self-employed workers. A regression analysis is provided at the country level.

Findings

In the three labour markets, the authors find that the building of work-related functionings is more successful for regular employees, especially as regards institutional support. Self-employed workers, on the other hand, need to rely on their individual capability as regards employment protection and human capital investment. However, the authors find interesting differences between the three institutional contexts. In both Belgium and France, self-employed workers are subject to higher instability in terms of changes in salary and hours worked, whereas atypical work is better positioned in the Dutch labour market. The Netherlands is also characterised by a less significant gap between regular and self-employed workers with respect to participation in training.

Originality/value

In this article, the authors contextualise Sen's (1985) theoretical framework by taking into account the institutional differences of labour markets. In particular, the authors provide a novel application of his capability approach to regular and self-employed workers in an economically relevant European area.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 11 May 2020

Hoon Choi

This paper examines whether and how labour market duality can be alleviated through legislation that prohibits discrimination based on employment type.

Abstract

Purpose

This paper examines whether and how labour market duality can be alleviated through legislation that prohibits discrimination based on employment type.

Design/methodology/approach

In 2007, the Korean government undertook a labour reform banning discriminatory treatment against fixed-term, part-time and dispatched workers. By exploiting a gradual implementation of the anti-discrimination law by firm size targeting a subset of non-regular workers, the paper identifies the treatment effects of the anti-discrimination law, taking a difference-in-difference-in-differences approach.

Findings

The results suggest that the anti-discrimination law significantly increases hourly wages and the probabilities of being covered by national pension, health insurance, and employment insurance for targeted non-regular workers in small firms relative to other workers. Anticipatory behaviours of employers and selective transitions of employees in response to the implementation of the anti-discrimination law do not underlie the estimated effects. The presence of labour unions contributes to reducing gaps in labour conditions between regular workers and targeted non-regular workers.

Originality/value

The main contribution of this paper is to provide empirical evidence on causal impacts of equal pay legislation on the gaps in labour conditions between different categories of workers, using a difference-in-difference-in-differences estimation.

Details

International Journal of Manpower, vol. 41 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 October 2002

Dan Moshavi and James R. Terborg

Although research on customer service representatives (CSRs) in call centers has increased in recent years, little attention has been paid to the growing use of contingent…

5241

Abstract

Although research on customer service representatives (CSRs) in call centers has increased in recent years, little attention has been paid to the growing use of contingent (temporary) CSRs in this setting. This study investigated the role that human capital plays in explaining the job satisfaction and performance of contingent and regular CSRs. Consistent with our expectations, contingent CSRs had less human capital but higher job satisfaction than regular workers. In addition, we found that human capital mediated the relationship between work status and job satisfaction. Contrary to expectations, no performance differences were found between contingent and regular CSRs. Implications for research and practice are discussed.

Details

International Journal of Service Industry Management, vol. 13 no. 4
Type: Research Article
ISSN: 0956-4233

Keywords

Article
Publication date: 20 March 2017

Cherng G. Ding and Chih-Kang Shen

The purpose of this paper is to examine the roles of perceived organizational support (POS) and work status (regular worker/contract worker) in moderating the relationship between…

1727

Abstract

Purpose

The purpose of this paper is to examine the roles of perceived organizational support (POS) and work status (regular worker/contract worker) in moderating the relationship between participation in decision making (PDM) and perceived insider status (PIS).

Design/methodology/approach

Data were collected with survey questionnaires that were administered to a sample of 369 employees from a case company in Taiwan, for which both regular and contract workers constitute the main workforce. After confirming the reliability and validity of the measurements, the authors conducted hierarchical regression analysis to examine the hypothesized relationships.

Findings

The mean PIS for regular workers is smaller than that for contract workers in the case company. For the group of contract workers, the positive influence of PDM on PIS is greater for those with lower POS than for those with higher POS. However, the negative moderating effect of POS does not exist for the group of regular workers.

Originality/value

This study adds to the existing literature by showing that contract workers, classified as external workers, can experience PIS, and that POS negatively moderates the positive relationship between PDM and PIS for contract workers. The managerial implications are discussed.

Article
Publication date: 23 October 2007

Marloes de Graaf‐Zijl and Ernest E. Berkhout

The purpose of this paper is to test the relationship between gross domestic product (GDP) and agency work.

2325

Abstract

Purpose

The purpose of this paper is to test the relationship between gross domestic product (GDP) and agency work.

Design/methodology/approach

The paper develops a theoretical model for the time interdependence of GDP, agency work and regular employment and tested model predictions using a VAR model.

Findings

Results show that on the macro level temporary agency work leads GDP development. Temporary agency work is an excellent instrument for employers to adjust the size of their workforce to fluctuations in product demand. Temporary work agencies, however, have a tough job finding qualified personnel in tight labour markets because workers generally prefer the security of a permanent contract. It is shown in this paper that, as a result of these two countervailing forces, the number of hours worked through temporary work agencies precedes GDP development. Agency work increases in the last phase of a recession after regular workers have been dismissed. It expands further, in line with GDP, when the trough is passed until agency worker's labour supply stagnates. This leads to a decrease in agency hours even before the business cycle reaches its peak. Then agency work declines further, in line with GDP, until regular workers are dismissed and the cycle start again.

Originality/value

Temporary work arrangements have become a key area of interest for firms, academics and policy makers. This paper shows how the use of these work arrangement fluctuates over time. Also, this paper shows that agency work can be used in predicting future GDP development.

Details

International Journal of Manpower, vol. 28 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 11 November 2016

Bettina Wagner and Anke Hassel

Germany has become one of the major destination countries for labour migration within the European Union. The German government introduced temporary restrictions on labour…

Abstract

Germany has become one of the major destination countries for labour migration within the European Union. The German government introduced temporary restrictions on labour migration after the eastern enlargement rounds of 2004 and 2007. These barriers had little impact on the overall volume of labour mobility. Rather they were accompanied by new “atypical” forms of mobility through the posting of workers, self-employment and seasonal workers, which according to EU rules are covered only by a minimum of host country regulations. The combination of temporary restrictions on regular migration and the opportunities through atypical mobility created strong incentives for companies to engage in ‘regime shopping’ strategies. This contributed to a considerable growth in outsourcing, subcontracting and flexible use of external labour added to pre-existing dynamics of low-wage competition, segmentation and fragmentation in the German labour market. Using data on the different forms of intra-EU migration to Germany, the article analyses the different paths that labour migration has frequently used since the fall of the Iron Curtain. First, it maps the changes in magnitude, character and direction of intra-EU labour mobility to Germany and the relative weight of the different channels through which such movements occurred from 2000 to 2015. Second, the article discusses the various responses by the government by the extension of collective agreements and the statutory minimum wage.

Details

Labour Mobility in the Enlarged Single European Market
Type: Book
ISBN: 978-1-78635-442-6

Keywords

Article
Publication date: 9 October 2009

Meenakshi Rajeev

The purpose of this paper is to understand the status of a class of non‐permanent labour in the globalised era in India.

1033

Abstract

Purpose

The purpose of this paper is to understand the status of a class of non‐permanent labour in the globalised era in India.

Design/methodology/approach

To understand this the paper uses both secondary level information and primary data collected through a survey. Secondary level data are analysed using a panel data model. Here, the hypothesis is: contribution of contract labour to production is greater than that of the regular employees. The primary level survey is conducted to know whether they are exploited due to their non‐permanent stature.

Findings

It is observed from secondary data analysis that the hypothesis is not rejected. Contract labour makes a significant contribution to production, while the regular employees do not. Primary survey also shows that they are exploited in many ways including through non‐payment of minimum wages.

Practical implications

The paper indicates that, while regulations are in place, they are abused and hence it is the implementation part on which government needs to focus.

Originality/value

Analysis shows how rationalization of employment does not take place due to labour regulations for the regular employees. It also brings to light through primary survey various lacunae in the implementation of the Contract Labour Act. Since survey of such labour class is difficult there are limited studies in this field.

Details

International Journal of Development Issues, vol. 8 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 1 September 1968

The Secretary of State after approving proposals submitted by the Construction Industry Training Board for the imposition of a further levy on employers in the construction…

11

Abstract

The Secretary of State after approving proposals submitted by the Construction Industry Training Board for the imposition of a further levy on employers in the construction industry and in exercise of her powers under section 4 of the Industrial Training Act 1964(a) and of all other powers enabling her in that behalf hereby makes the following Order:—

Details

Managerial Law, vol. 4 no. 6
Type: Research Article
ISSN: 0309-0558

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