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The purpose of this paper is to explore the impact of the employer’s wage policy on the wage dynamics of vulnerable groups of employees at large firms, including younger employees, employees on fixed-term contracts, and employees who take parental leave.

The first step of the analysis identifies the wage policy models adopted by a sample of large Italian companies by means of a cluster analysis based on firm-level variables that describe the wage level, wage structure, and wage dynamics. The second step estimates the impact of the employer’s wage policy on the wage growth path of matched employees, paying particular attention to groups of vulnerable workers.

The cluster analysis identifies four clusters whose characteristics reflect ideal types suggested by the literature. The 2SLS wage regressions that examine the impact of the employer’s wage policy model on a matched employee’s wage five years later confirm that the initial employer’s wage policy is a significant determinant of wage dynamics. However, the observed patterns significantly differ between the whole sample and the examined groups of vulnerable employees.

Despite consistent evidence of negative labour market outcomes for vulnerable employees, the impact of firm characteristics on segregation into disadvantaged groups is still under-researched. This paper provides new evidence of how the employer’s wage policy impacts the wage growth path of disadvantaged employees and highlights critical dimensions to reduce the risk of segregation into less favourable segments of the labour market.

Analyses the tensions between change and continuity in the German model of labour flexibility and examines why recent deregulation and decentralization measures only had a limited impact on companies’ flexibility approaches. Addresses the subsequent issues of how, and to what extent the framework for the several forms of flexibility should be broadened in the particular German context, where the institutional/regulatory environment has encouraged the widespread adoption of a diversified quality production strategy, based on high levels of functional flexibility. Concludes that a large section of German companies may already operate near an optional labour flexibility mix. Suggests system internal reforms based on regulated flexibility and centrally co‐ordinated decentralization, in order to enhance, to some extent, the framework for flexibility without undermining the underlying incentive structure for high skills/high productivity approaches to flexibility.

Using a unique three‐digit firm‐level data set of all medium‐ and large‐sized manufacturing enterprises in Bulgaria covering the years 1997/1998, and investigation is conducted into how wage determination is related to ownership status. Building on a slightly modified version of the right‐to‐manage model, the pooled OLS, panel and first‐difference TSLS estimates show statistically significant differences in the share of rents taken by workers employed in state, private domestic and foreign firms. Taking account of firm heterogeneity, it is found that rent sharing is nearly non‐existent in foreign‐owned firms, while the level of pay is higher compared with state‐owned companies. Further, rent sharing seems to be highly pronounced in state‐owned enterprises, while on average domestically private‐owned companies are characterised by less rent sharing. Overall, the robustness checks confirm these findings.

Briefly identifies the different Conventions and Recommendations of the International Labour Organization pertaining to national wage policy matters. Introduces some of the issues which need study when considering the social and economic effects of minimum wages, outlining the different roles that minimum wage fixing seeks to achieve. Concludes by considering some of the broader issues relating to labour standards, low pay and competitiveness. Argues that, in a market environment where competition is based increasingly on process and product development, a low‐pay strategy concentrating on the price of labour – and not on research and development and product design and quality – will be deficient. Suggests that economic innovation and dynamism cannot be derived from making labour cheaper, but by rendering it more productive, and that, to achieve this, a national general minimum floor to wages and other terms and conditions of employment are necessary.

Based on representative longitudinal data (CNEF 1980–2013) the paper analyzes gender differences of the level and the determinants of earnings dynamics in the work life of different cohorts of employees in Germany, Great Britain, and the United States. Notwithstanding country differences concerning the existing welfare state regime constituting the institutional settings of the labor market, the educational system, and family role models, the empirical results show decreasing earnings mobility in the work history. The earnings level, educational attainment, family size, the occupational choice, the career stage, the birth cohort, and the macroeconomic fluctuations significantly influence earnings mobility. In the United States, earnings mobility is significantly lower and gender differences are less pronounced than in Germany and Great Britain. The gender gap of earnings mobility is less expressed for younger cohorts of German employees. The increase of the gender gap of earnings dynamics in the course of the work career indicates continuing heterogeneity of labor market behavior and outcome of women and men which contribute to persistent economic and social stratification.

Niehaus and Sukhtankar (2013a, 2013b) find that in response to an increase in the public wage rate in National Rural Employment Guarantee Act (NREGA), underpayment of wage and embezzlement rates increase monotonically. This paper aims to investigate theoretically whether the empirical finding of Niehaus and Sukhtankar (2013b) is valid in the long run. The author also verify whether their observation extends to the situation where multiple types of corruption coexist.

The author builds a theoretical model comprising of three individuals – a government official, a landlord and a representative worker. First, the author defines a no-corruption equilibrium where the official honestly reports the employment period to the government. In a two-stage game, the landlord announces the private wage rate in stage one, followed by the worker deciding on the allocation of time between private and public works and leisure. Then the author considers a single type of corruption where the official embezzles a part of public money by over-reporting the employment period. The landlord-worker game remains the same as before. Finally, the author considers multiple types of corruption where alongside embezzlement, the official takes a bribe from the worker for employing her. Here also, the author considers a two-stage game where in stage one, the official and landlord simultaneously determine embezzlement and bribe rates and the private wage rate, respectively. In stage two, the worker decides on the allocation of time. In both types of corruption, the probability of detection increases with the corruption rate.

In the case of a single type of corruption, the embezzlement rate behaves nonmonotonically in response to an increase in the public wage rate. A similar kind of result is obtained with multiple types of corruption as well.

First, to the best of the author’s knowledge, no paper prior to this has theoretically modeled corruption in NREGA. Also, the observations of Niehaus and Sukhtankar (2013a, 2013b) is neither valid in the long run nor extend to multiple corruptions.

The purpose of this paper is to introduce this special issue volume on vulnerable work and strategies for inclusion. Definitions, measurement, analysis and policy responses to vulnerable work and strategies for inclusion are addressed before the key aspects of the nine papers included in the special issue are summarised.

The topic of vulnerability at work is explored, before the distinguishing features of jobs that generate vulnerable conditions and the characteristics of vulnerable workers are identified.

Vulnerable work is insecure and irregular with few protections accorded to the vulnerable workers who are often characterised by their age, ethnic status, gender and skill profiles. The consequences include: poor job quality, low and irregular incomes and personal/family hardship. Vulnerability is widespread across the workforce, with workers subject to work intensification, employment insecurity and poor work-life balance.

Vulnerable work and workers constitute a growing and global phenomenon. Consequently, governments and employers need to work together on programmes, such as the ILO’s decent work agenda, to ensure that basic human rights at work are widely recognised and provision to ongoing employment, safe working conditions and regular hours are offered across a variety of industries/sectors.

This volume examines the conceptual, empirical and policy aspects of vulnerability in employment. It documents the international dimensions of vulnerability, the different forms it takes, those groups that are at risk of vulnerable employment and the underlying factors that generate and support vulnerability.

The purpose of this paper is to analyse the situation of performance management, to be more precise, the usage and attitudes towards pay‐for‐performance on the example of Estonian schools and brings out practical implications for implementing pay‐for‐performance in Estonian general educational schools.

Altogether 298 headmasters and 2,165 teachers participated in this research. The goal of the research was to map the situation of the usage of pay‐for‐performance in Estonian schools and to find out teachers' and headmasters' opinions about the most effective pay‐for‐performance system.

Despite the great expectations of performance management and pay‐for‐performance, it is not being used in many Estonian general educational schools. However, the findings of this research show that both headmasters and teachers have quite positive attitudes towards pay‐for‐performance that gives a favourable platform for implementing pay‐for‐performance in the Estonian educational sector.

The study was mainly quantitative with only a few open questions, which raises limitations for finding complete answers and explanations to questions raised. Therefore, case studies need to be done to find answers to some interesting research questions.

With the view to raising the performance of the Estonian educational system and to guarantee its sustainability, a new course concerning schools' and pupils' individual development must be taken. It can be achieved through performance management and pay‐for‐performance, which also helps to raise teachers' motivation. A central feature of the pay‐for‐performance is that pay must be in accord with performance and must provide an incentive to promote the success of the organisation.

The purpose of this paper is to explore the underlying differences in the initial and ongoing development of business leaders on both sides of the Atlantic to see if causal links might be identified that could explain the leadership elements that lie beneath the US' productivity advantage.

Research was undertaken on a Fulbright Scholarship to study management and leadership development. The information was gathered through semi‐structured interviews with 45 internationally experienced human resource managers and management and leadership development practitioners in the public, private and not‐for‐profit sectors across eight states in the USA.

The determinates of business success are highly structural in nature. However, analysis indicates that dramatic improvements in productivity are readily, and universally, available to all business enterprises simply through the adoption of globally existing best practices.

The results obtained from this work are the observations of well‐informed, managers and development practitioners. A high proportion of those interviewed had direct personal experience of working with managers in the UK and Ireland. Their views and opinions are, of course, anecdotal in nature but, where possible, they are either validated or rejected with reference to the current academic literature available.

For private enterprise and public sector policy makers alike, there are clear lessons on the value of investment in leadership and management development as one of the most cost‐effective ways to encourage higher levels of business and economic performance.

The paper provides an analysis of some of the factors that contribute to the persistent productivity gap between the USA and the UK and offers a range of action areas that would help to improve business and economic performance.