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Article
Publication date: 3 May 2016

Verena Tandrayen-Ragoobur and Rajeev Pydayya

This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage distribution…

1425

Abstract

Purpose

This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage distribution. The paper then decomposed the gender wage differential using the Oaxaca and Blinder (1973) decomposition technique.

Design/methodology/approach

The study uses cross-sectional data from the Continuous Multi-Purpose Household Budget Survey (CMPHS), from 2006 to 2013. The sample size on average is around 12,000 households surveyed per year.

Findings

The results reveal that that gender wage differentials are prevalent in both economic sectors; however, the disparity is more pronounced in the private sector. In addition, the differences in wages are larger at the bottom compared to the top end of the wage distribution, suggesting the presence of sticky floors. Lastly, it was observed that the unexplained wage gap (discrimination) is higher in the private sector than in public sector across the years.

Originality/value

The literature on the gender wage gap in Africa is limited. This paper adds to the existing literature on gender wage differential with an analysis of the gender wage disparity across the public and private sectors in Mauritius.

Details

Gender in Management: An International Journal, vol. 31 no. 3
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 30 December 2020

Francieli Tonet Maciel

This paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.

Abstract

Purpose

This paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.

Design/methodology/approach

The author uses microdata from the National Household Sample Survey and adopts two occupational integration typology to capture both horizontal and vertical segregation. The decomposition method proposed by Firpo et al. (2009) is employed to investigate the determinants of changes in differentials along the wage distribution.

Findings

Results suggest a glass ceiling effect for all groups compared to white men. Gender and racial discrimination persist, especially at the top of the distribution. For both black women and men, observable characteristics account for most of the wage differentials, while for white women, the opposite occurs because of their education level. Vertical segregation behavior indicates that white men continue over-represented in higher-paid occupations. Although women improved their relative position in the occupational hierarchy, horizontal segregation behavior shows that their concentration in female-dominated occupations has not reduced, except in extreme quantiles. Education played a crucial role in reducing wage gaps, and regional differences stood out as a significant factor of the racial disadvantage.

Originality/value

The paper shows significant differences between the groups regarding verticalization and horizontalization of occupational structure along the wage distribution and over time, contributing to filling some gaps in the literature concerning the wage stratification based on gender and race in Brazil. Occupational segregation as a composition factor of the groups determines their positions in a vertically hierarchical and socially stratified occupational structure. The behavior of horizontal and vertical segregations evidences the continue under-valorization of female occupations and the barriers faced by racial and gendered groups to overcome the glass ceiling effect. Recognize the intersectionality of gender and race in addressing inequalities is fundamental to promote policies that overcome them.

Details

International Journal of Manpower, vol. 42 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 30 September 2014

José María Arranz and Carlos García-Serrano

The purpose of this paper is to examine the wage distribution in Spain, its evolution in recent years and the implications for increased wage dispersion. Accordingly, its…

Abstract

Purpose

The purpose of this paper is to examine the wage distribution in Spain, its evolution in recent years and the implications for increased wage dispersion. Accordingly, its attention focuses on the following issues: first, the paper investigates how personal, job and firm attributes affect the wages distribution and examine earnings differentials between and within groups of workers according to their individual and job characteristics throughout the conditional wage distribution; and second, the paper analyses whether the business cycle may influence the magnitude of these differentials.

Design/methodology/approach

Using administrative data from the Spanish Social Security and the Tax Administration National Agency, the paper estimates OLS and quantile regression (QR) models in order to assess the impact of personal, job and workplace attributes on between- and within-groups wage inequality.

Findings

Among other things, we find that, although the average wage has been increasing over time (until 2009), changes have not been uniform across the earnings distribution, making the dispersion fall during boom years but rise during downturn years. Furthermore, changes in the impacts of some characteristics (types of contract, education/qualifications, region and employer size) contributed to higher wage dispersion, while others (tenure) made the distribution more equal.

Originality/value

The analysis of the paper in novel in that it investigates whether wage differentials respond to the business cycle and what the source of that variation is. Moreover, it analyses wages differentials not only at the mean but also throughout the conditional earnings distribution, making it possible to assess the impact of these attributes on between- and within-groups wage inequality.

Details

International Journal of Manpower, vol. 35 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 March 1991

K. Kioulafas, G. Donatos and G. Michailidis

This article examines the determination of wagedifferentials in the public and private sectors ofGreece. Also, it considers the effects of incomepolicies on the existing wage…

Abstract

This article examines the determination of wage differentials in the public and private sectors of Greece. Also, it considers the effects of income policies on the existing wage differentials for the period 1975‐85. The empirical analysis is based on the hypothesis that wages depend on labour productivity which is a function of certain measurable personal characteristics, such as education, experience and skill. The main findings are that the public sector pays higher wages than the private sector. The public sector also offers higher returns with respect to education and experience, while the private sector compensates more skilled workers. Finally, it is shown that there is a narrowing of existing wage differentials during the examined period especially on determinants expressing productivity‐related characteristics such as education, experience and skill.

Details

International Journal of Manpower, vol. 12 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 June 2003

François Rycx

This paper examines the role of the bargaining regime in bringing about inter‐industry wage differentials in the Belgian private sector. Empirical findings, based on the 1995…

1092

Abstract

This paper examines the role of the bargaining regime in bringing about inter‐industry wage differentials in the Belgian private sector. Empirical findings, based on the 1995 Structure of Earnings Survey, emphasise that sectors offering high/low wages are similar for workers covered by different bargaining regimes, even when controlling for individual characteristics, working conditions and firm size. Moreover, results show that, ceteris paribus, the dispersion of inter‐industry wage differentials is higher when wages are collectively renegotiated at the firm level, and workers covered by a company collective agreement (CA) earn 5.1 per cent more than their opposite numbers whose wages are solely covered by national and/or sectoral CAs.

Details

International Journal of Manpower, vol. 24 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 August 2020

Robert Elliott, Daniel Kopasker and Diane Skåtun

Distinguishing what employers in different areas of Great Britain need to pay to attract and retain labour has been a central component of public-sector resource allocation…

Abstract

Purpose

Distinguishing what employers in different areas of Great Britain need to pay to attract and retain labour has been a central component of public-sector resource allocation decisions. This paper examines how changes in the pattern of spatial wage differentials following the global financial crisis have impacted on the formulae which allocate government funding to local government and health providers in the NHS.

Design/methodology/approach

Using employer-reported data on earnings, we examine spatial patterns of private-sector wages in Great Britain between 2007 and 2017. The method permits the analysis of finely defined geographical areas and controls for differences in industry and workforce composition to distinguish those differences that are attributable from unmeasured characteristics, such as differences between areas in the cost of living and amenities. These standardised spatial wage differentials (SSWDs) underpin the funding allocation formulae.

Findings

The analysis shows that since 2007 private-sector wage dispersion, both within and between regions, has reduced: lower paid areas have experienced a relative increase in wages and higher paid a relative decline. Over the period, there was a significant reduction in the London wage premium.

Originality/value

This paper demonstrates the importance of ensuring established policies are applied using contemporary data. The SSWDs used to distribute government funds have not been re-estimated for some time. As a result, the current resource allocation model has overcompensated the London region and undercompensated others during this period.

Article
Publication date: 1 December 1994

Jim Millington

Reviews a number of contributions to migration analysis. Discusses someof the rudiments of migration modelling before turning attention tospecific applications. Pays particular…

3422

Abstract

Reviews a number of contributions to migration analysis. Discusses some of the rudiments of migration modelling before turning attention to specific applications. Pays particular attention to articles which have modelled the interaction between labour and housing markets.

Details

International Journal of Manpower, vol. 15 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 25 May 2021

Colin Williams and Ardiana Gashi

Despite a widespread assertion that wages are lower in the informal than formal economy, there have been few empirical evaluations of whether this is the case and even fewer…

Abstract

Purpose

Despite a widespread assertion that wages are lower in the informal than formal economy, there have been few empirical evaluations of whether this is the case and even fewer studies of the gender variations in wage rates in the formal and informal economies. Consequently, whether there are wage benefits to formal employment for men and women is unknown. The aim of this paper is to evaluate the wage differential between formal and informal employment for men and women.

Design/methodology/approach

To evaluate the wage differential between the formal and informal economy for men and women, data are reported from a 2017 survey involving 8,533 household interviews conducted in Kosovo.

Findings

Using decomposition analysis and after controlling for other determinants of wage differentials, the finding is that the net hourly earnings of men in formal employment are 26% higher than men in informal employment and 14% higher for women in formal employment compared with women in informal employment.

Practical implications

Given the size of the wage differential, the costs for employers will need to significantly increase in terms of the penalties and risks of detection if informal employment is to be prevented, along with more formal employment opportunities using active labour market policies for vulnerable groups, perhaps targeted at men (who constitute 82.8% of those in informal employment).

Originality/value

This is one of the first studies to evaluate the differentials in wage rates in the formal and economy from a gender perspective.

Details

Journal of Economic Studies, vol. 49 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 1 April 2004

Antonio Caparrós Ruiz, María Lucía Navarro Gómez and Mario Federico Rueda Narváez

Equal treatment for men and women is an important objective of labour policy in the European Union, largely because there is ample evidence of gender discrimination in the wages…

1439

Abstract

Equal treatment for men and women is an important objective of labour policy in the European Union, largely because there is ample evidence of gender discrimination in the wages of men and women, which are on an average higher for male workers. Research on male‐female wage differentials provides evidence of a substantial wage differential favouring men after adjusting for human capital and personal characteristics such as education, age, job tenure, and labour force intermittency. However, few studies take into account the role that job mobility plays in this differential, despite its demonstrated importance in explaining the earnings profile of workers. This paper estimates gender wage differentials for workers who switch jobs and those who keep them in order to see whether job mobility enlarges or reduces the gender gap. The study uses microdata relative to Spanish workers gathered from the Households Panel Study (1994‐1997), conducted by the Spanish National Statistics Institute.

Details

International Journal of Manpower, vol. 25 no. 3/4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 23 March 2012

Corrado Giulietti, Guangjie Ning and Klaus F. Zimmermann

The purpose of this paper is to explore the determinants of self‐employment among rural to urban migrants in China.

1959

Abstract

Purpose

The purpose of this paper is to explore the determinants of self‐employment among rural to urban migrants in China.

Design/methodology/approach

The analysis is based on a sample of migrant household heads from the 2008 Rural‐Urban Migration in China and Indonesia (RUMiCI) survey. An estimate of the wage differential between self‐employed and employed workers is obtained by means of an endogenous switching model and used to estimate the employment choice. The procedure is extended to account for migration selectivity bias, for alternative statuses before migration, and for different post‐migration employment histories.

Findings

Self‐employed migrants are positively selected with respect to their unobserved characteristics; their wages are substantially higher than what they would have obtained had they chosen paid work. Furthermore, even after accounting for the substantial heterogeneity across cities, industries, occupations, and after correcting for the migration selectivity bias, the wage differential is found to be an important determinant of self‐employment.

Research limitations/implications

The finding that market imperfections do not constrain the self‐employment choice of migrants does not imply that reforms designed to eliminate institutional barriers are undesirable. Policy should target the reduction of gaps between urban residents and migrants (such as the household registration system – hukou), so that migrants can access new business opportunities which are currently a prerogative of urban residents.

Originality/value

The paper analyses the determinants of self‐employment using a recent survey based on a sample of rural‐to‐urban migrants in China. The key findings indicate that migrants who choose self‐employment are positively selected in terms of their unobservable characteristics. Moreover, the wage differential has a strong positive effect on the probability of choosing self‐employment. In the transition to a market economy, which is taking place in China, the identification of the determinants of self‐employment is crucial.

Details

International Journal of Manpower, vol. 33 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

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