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This study aims to examine the role of Bilateral Investment Treaties (BITs) in attracting higher foreign direct investment (FDI) inflows into the major emerging economies namely Brazil, Russia, India, China and South Africa (BRICS) from the source developed, developing and other emerging economies over a period of 18 years from 2001 to 2018.

To estimate the results, panel data regression on a gravity-knowledge capital model has been used. To account for the problem of endogeneity we have used the two-step difference Generalised Method of Moments estimator proposed by Arellano and Bond (1991).

We find that contradictory to theory and expectations, BITs result in a fall in FDI inflows in BRICS economies. BITs ratified by BRICS economies are not able to provide a sound and secure investment environment to foreign investors, thereby discouraging FDI in these economies.

To the best of the authors’ knowledge, this study is the first to examine the impact of BITs on FDI inflows into the emerging BRICS economies. Further, the impact of BITs on FDI flows among developed nations, i.e. north-north FDI and from developed to developing countries, i.e. north-south FDI has already been studied by many researchers. But so far, no study has examined this impact on FDI among developing and emerging economies (south-south FDI), despite an increase in FDI flows among these economies. Therefore, this study seeks to overcome the limitations of previous studies and tries to find out the impact of BITs on FDI inflows in BRICS economies not only from source developed but also from source developing and other emerging economies.

Organizational scholars studying compensation often place an emphasis on certain employee groups (e.g., executives). Missing from this discussion is research on the compensation systems for low-wage jobs. In this review, the authors argue that workers in low-wage jobs represent a unique employment group in their understanding of rent allocation in organizations. The authors address the design of compensation strategies in organizations that lead to different outcomes for workers in low-wage jobs versus other workers. Drawing on and integrating human resource management (HRM), inequality, and worker literatures with compensation literature, the authors describe and explain compensation systems for low-wage work. The authors start by examining workers in low-wage work to identify aspects of these workers’ jobs and lives that can influence their health, performance, and other organizationally relevant outcomes. Next, the authors explore the compensation systems common for this type of work, building on the compensation literature, by identifying the low-wage work compensation designs, proposing the likely explanations for why organizations craft these designs, and describing the worker and organizational outcomes of these designs. The authors conclude with suggestions for future research in this growing field and explore how organizations may benefit by rethinking their approach to compensation for low-wage work. In sum, the authors hope that this review will be a foundational work for those interested in investigating organizational compensation issues at the intersection of inequality and worker and organizational outcomes.

The aim of the paper is to investigate Goodwin’s growth cycle in the Indian organised manufacturing industries.

The methodology is based on bi-variate differential equation, econometrics model like log-linear regression and Autoregressive Distributed Lag model. An empirical investigation is conducted on data from the Annual Survey of Industries from 1980 to 2018 time period.

The results indicate that though the original Goodwin model estimates deviated from data estimates, its modified (neo-Goodwin) model are found to be equivalent to the data estimates. Moreover, in contrast to the original model, the capital accumulation rate (investment to profit ratio) is not assumed to be unitary in the modified Goodwin model. Furthermore, the labour market-led and cost effect conditions of the Goodwin cycle are empirically verified by investigating the interdependency between employment rate and wage share. Lastly, the short- and long-run Goodwin cycles are observed to be moving in anti-clockwise direction in the employment rate and wage share bi-dimensional plane, thus confirming the existence of profit-led distribution where wage share continuously reducing with high employment.

This study opens the discussion on application of capitalistic model in the emerging economy and also suggests to incorporate some theoretical models like Kaldorian, Keynesian, Kaleckian or Schumpetrian into the Goodwin cycle.

This is the first paper which empirically examines the capitalistic nature of Indian organised manufacturing industries through the lens of Goodwin growth cycle and then extend it to the Neo-Goodwin model by relaxing one of the unrealistic assumption regarding unitary investment to profit ratio.

Public health measures implemented early in the COVID-19 pandemic brought the idea of essential work into the public discourse, as the public reflected upon what types of work are essential for society to function, who performs that work, and how the labour of essential workers is rewarded. This chapter focusses on the rewards associated with essential work. The authors develop an intersectional lens on work that was officially deemed essential in 2020 to highlight longstanding patterns of devaluation among essential workers, including those undergirded by systemic racism in employment and labour law. The authors use quantitative data from the CPS-MORG to examine earnings differences between essential and non-essential workers and investigate whether the essential worker wage gap changed from month to month in 2020. The authors find that patterns of valuation among essential workers cannot be explained by human capital or other standard labour market characteristics. Rather, intersectional wage inequalities in 2020 reflect historical patterns that are highly durable and did not abate in the first year of the global pandemic.

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.

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

This study investigates the effect of business cycles on school enrollment in Turkey. During recessions, school enrollment might increase as opportunity cost of schooling declines, yet it might also decrease because of reduced income households have for education. Which effect dominates depends on the context. We empirically explore this in a context displaying canonical features of developing countries.

Using the Turkish Household Labor Force Survey data for a period covering the Great Recession, we estimate the effect of unemployment rate separately for enrollments in general and vocational high schools and in undergraduate programs. To understand the cyclicality, we use a probit model with the regional and time variations in unemployment rates. We also build a simple theoretical model of work-schooling choice to interpret the findings.

We find that the likelihood of enrolling in general high schools and undergraduate programs declines with higher adult unemployment rates, but the likelihood of enrollment in vocational high schools increases. Confronting these empirical findings with the theoretical model suggests that the major factor in enrollment cyclicality in Turkey is how parental resources allocated to education change during recessions by schooling type.

Our finding of pro-cyclical enrollment in academically oriented programs is in contrast with counter-cyclicality documented for similar programs in developed countries, which highlights the importance of income related factors in developing-country contexts. Our heterogeneous findings for general and vocational high schools are also novel.

In the fashion of Martin (2012), we develop an innovative application to a standard, well-grounded methodology to investigate resilience in two critical dimensions: recovery and resistance. Our novel approach allows us to investigate the resilience performance to the 2008 financial crisis within countries of this macro-region according to their shock isolation and absorptive capacities.

By individually estimating six open economy DSGE models within the Central Europe and Baltic macro-region, we identify the business-cycle-volatility drivers for each country. Then, we use the outcome of our six estimates to conduct a principal component analysis to determine structural common characteristics required to explain economic resilience in the CEB macro-region.

In terms of resilience, Central European economies exhibit quite similar paths in terms of recovery, meaning they have similar economic structures. By contrast, Baltic countries behave differently, being outliers in opposite extreme positions. The contrary occurs for resistance: Baltic countries share a similar ranking, whereas Central European economies exhibit substantial differences.

It is important to acknowledge that a limitation of the analysis is that we explicitly consider each country as a stand-alone open economy which are subject to stochastic disturbances. Precisely, we do not model trade or other interactions across countries within the CEB region and with the rest of the world. Consequently, spillover effects in the aftermath of the shock are not accounted for.

We estimate the relative vulnerability or sensitivity of economies within the macro-region to disturbances and disruptions (resistance) and the speed and extent of recovery from such a disruption or recession (recovery). First, we built two different kinds of measures of resilience by aggregating the estimated parameters through non-centered and centered principal component analysis. Then, we use our model to investigate the relation between financial shock and the economic resilience across the region. The approach can be applied to several case studies, parsimoniously.

In this paper we investigate why the process of structural change in Brazil was growth accelerating before 1980 and why it was growth reducing after this year.

We investigate the causes of this change in behavior using the shift-share decomposition method.

The results indicate that in the first period there were high productivity gains as result of improvement in economic fundamentals such as the quality of capital and of labor and innovations. In this way, reallocation of workers between sectors, that is part of the process of structural change, was an inducer of economic growth. However, after 1980, mainly between 1991 and 2011, sectors that achieved productivity gains did so by reducing labor, which was absorbed by sectors with poor performance in terms of productivity growth. Furthermore, factors such as the deindustrialization that developed countries have been undergoing, the international situation, the stage of Brazilian economic development and its possible premature deindustrialization contributed to a growth reducing structural change.

Our differential to the matter is applying the shift-share methodology without combining any of the ten sectors analyzed, adopting a slightly different time frame than similar studies and presenting the shift-share results in a graphically manner in addition to the traditional numbers. By representing graphically how much each of the ten sectors is contributing to the structural change in the economy we are emphasizing the specificities of each of these sectors instead of just considering the aggregated view like manufacturing industry versus other industries or modern services versus traditional services.

To investigate the potential of raising the retirement age and reforming pension insurance in mitigating intra- and inter-generational income inequality, thereby offering empirical support for governmental policy formulation.

A dynamic general equilibrium model with intertemporal iteration is developed to comprehensively assess the impact of policies raising the retirement age on income inequality, taking into account delayed retirement, survival probability, and pension insurance. The theoretical hypotheses are validated through simulation using MATLAB.

Through theoretical analysis, it is determined that, given certain assumptions are satisfied, raising the retirement age can effectively mitigate intra-generational income inequality, inter-generational income inequality under both the pay-as-you-go and fund accumulation systems. Simulation results indicate that, under current parameter settings, raising the retirement age can reduce the Gini coefficient. Furthermore, this study reveals that regardless of the pay-as-you-go or fund accumulation system, pension insurance serves as a mechanism for income redistribution and alleviating income inequality.

It offers a theoretical foundation for the government's policy on delayed retirement and endowment insurance.