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1 – 10 of over 2000The purpose of this paper is to describe how the voluntary living wage (LW) in the UK is set. It examines how this calculation relates to contemporary approaches to setting wage…
Abstract
Purpose
The purpose of this paper is to describe how the voluntary living wage (LW) in the UK is set. It examines how this calculation relates to contemporary approaches to setting wage floors, both in relation to their goal of supporting adequate living standards and in relation to the place of wage floors in the labour mark.
Design/methodology/approach
The paper examines how compulsory and voluntary wage floors are being determined, in the UK and in particular the role of public consensus in contributing to the calculation and adoption of a LW. It then reflects on the future sustainability of a system of wage floors in which the concept of the LW plays a significant role.
Findings
The central finding is that widespread support for wages delivering socially acceptable minimum living standards has transformed the context in which low pay is being addressed in the UK. The LW idea has stimulated more decisive efforts to do so; however, if a compulsory version of a LW were to reach a level shown to be harming jobs, this could seriously undermine such efforts. Moreover, the extent to which adequate wages are compatible with high employment levels can also be influenced by state support for households, especially tax credits and Universal Credit.
Originality/value
The paper clarifies how the setting of the UK LW contributes to objectives related both to living standards and to labour markets, and critically addresses some key issues raised.
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Suzan Abd El Moneim El Balshy and Mamdouh Ismael
This paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational…
Abstract
Purpose
This paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational justice (OJ) perspective. It focuses on analyzing the dimensions of job-based pay structure and the use of multifaceted construct of OJ (procedures, distribution and interaction) to determine how the perceived justice of JE's multi-levels construct contributes to achieve the fairness of wage structure.
Design/methodology/approach
This paper adopts an analytical descriptive approach in terms of explaining the perspectives and viewpoints related to the analysis. This paper is based on examining a theoretical framework provided by the authors based on a theoretical review of literature and a set of empirical evidences.
Findings
The design of a hierarchical wage structure counts on the multidimensional approach of JE which consists of three dimensions (processes, outcomes and social system). In addition, the determination of wage structure fairness is dependent on the assessment of the perceived justice of: JE's procedures, wages distribution and management's treatment with its employees.
Originality/value
This study provides a new theoretical contribution in studying the relationship between JE and the design of fair wage structure. This contribution can be regarded as a theoretical foundation for conducting some empirical and comparative studies in the future. The study affords directive mechanisms to policymakers in order to enhance the fairness of the wage structure across the state.
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Edmund Heery, Deborah Hann and David Nash
This paper presents an account of the UK campaign for the voluntary Living Wage, an example of civil regulation. The purpose of this paper is to identify and characterize the…
Abstract
Purpose
This paper presents an account of the UK campaign for the voluntary Living Wage, an example of civil regulation. The purpose of this paper is to identify and characterize the actors involved in the campaign, describe methods used and examine direct and indirect consequences of the campaign.
Design/methodology/approach
A mixed-method design is employed, reflecting the broadly framed purpose of the research. The research used semi-structured interviews with campaigners, union representatives and employers, observation of campaign activities and the creation of a database of Living Wage employers.
Findings
The campaign originated in the community organizing movement, but has involved a broad range of labor market actors, both “new” and “old.” A continuum of campaigning methods has been used, stretching from community mobilization to appeals to employer self-interest and corporate social responsibility. The campaign has recruited 3,000 employers, led to wage increases for thousands of workers and registered indirect effects by shaping the policies of governments, employers and unions.
Originality/value
The research presents a novel account of the UK’s distinctive Living Wage campaign, a notable example of the civil regulation of the labor market.
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After 15 years of successful operation, the British Low Pay Commission’s management of the National Minimum Wage was threatened in 2015 by the government’s introduction the…
Abstract
Purpose
After 15 years of successful operation, the British Low Pay Commission’s management of the National Minimum Wage was threatened in 2015 by the government’s introduction the National Living Wage. The purpose of this paper is to consider the underlying principles of previous minimum wage fixing, and the additional thinking of the Living Wage Foundation and the review of the issue by the Resolution Foundation.
Design/methodology/approach
The paper draws on the 2016 reports of the Commission to argue that the two statutory wages are unavoidably interlinked and are tied to incompatible criteria.
Findings
The paper concludes that the predicted eventual impact of the National Living Wage on the labour market will be unsustainable.
Research limitations/implications
The paper is relevant to minimum wage research.
Practical implications
The paper is relevant to minimum wage policy.
Social implications
The paper is relevant to low pay policy.
Originality/value
The paper provides original analysis of minimum wage policy.
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The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses…
Abstract
Purpose
The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses the Islamic perspectives on minimum wage and examines contemporary challenges and intricacies in its application.
Design/methodology/approach
This study uses thematic analysis to create the conceptual framework, drawing upon a review of pertinent literature such as academic papers, books and articles published up to 2023.
Findings
The framework encompasses various categories, namely, employee characteristics, job characteristics, market factors, compensation practices and Islamic principles. Each category consists of multiple variables. The resulting framework offers a holistic and ethically grounded methodology for wage determination, aligning with both Islamic and conventional perspectives. This study notes the absence of a universally agreed-upon minimum wage. Islamic economics faces challenges due to the unclear application of principles, limited awareness, legal constraints and a lack of empirical evidence on wage systems, along with complexities in their implementation.
Research limitations/implications
The paper’s limited scope focuses solely on the Islamic perspective on wage determination, without comparing it to the conventional viewpoint. This may have implications for future research.
Practical implications
The insights on Islamic principles and wage determination guide scholars and policymakers interested in promoting just and equitable wages.
Originality/value
This study is distinct in its integration of various factors to propose an all-encompassing framework for wage determination, rooted in the Quran and principles, while also reinforcing the framework with conventional theories. Additionally, it adds to the growing body of literature by investigating the Quran’s stance and principles on minimum wage, as well as discusses the challenges involved in implementing an Islamic approach to wage determination, which has received limited attention in Islamic literature.
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The purpose of this paper is to understand the impact of living wages on organisational pay systems.
Abstract
Purpose
The purpose of this paper is to understand the impact of living wages on organisational pay systems.
Design/methodology/approach
The research draws on 23 semi-structured interviews with HR managers, trade union representatives, and politicians at four UK local government case study sites.
Findings
The findings suggest that living wages can have a positive impact on directly employed workers in cleaning, catering and care services, but the research also finds that the localised adoption of living wages can lead to significant wage compression, resulting in a broad band of “low skill-low wage jobs”.
Originality/value
The theoretical contribution is twofold. In-line with earlier research the “first-order” effects of living wages are clear: hourly wages for a large number of women in part-time roles increased sharply. However, this is only part of the story as “second-order” effects such as ripples and spill-overs are less extensive than suggested by other studies. This is due to the limited scope for trade unions to restore wage differentials through collective bargaining, the slow progress in extending the living wage to contracted staff, and parallel processes of downsizing and outsourcing.
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The purpose of this paper is to provide background on the US living wage movement, with particular attention to recent victories, and also the ways in which the US movement…
Abstract
Purpose
The purpose of this paper is to provide background on the US living wage movement, with particular attention to recent victories, and also the ways in which the US movement differs from living wage movements in other countries. It begins with some technical distinctions of terms, then analyzes the campaigns and movement for higher wages, and considers some of the challenges the campaigns have faced. It will conclude with some discussion about the future of the movement.
Design/methodology/approach
This is a general review of living wage campaigns in the USA. This is based on a review of existing literature and the author’s own prior research and participant observation.
Findings
The author argues that the initial living wage movement that began in the early 1990s was limited in scope but successful in building coalitions and political power to launch a much more expansive movement to raise wages in 2012.
Originality/value
This paper is a general summary of the last 20 years of living wage campaigns. It does not include new research.
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The purpose of this paper is to explore the value that UK trade unions now place on the living wage.
Abstract
Purpose
The purpose of this paper is to explore the value that UK trade unions now place on the living wage.
Design/methodology/approach
The author is the TUC’s Pay Policy Officer and examines the issue from a practitioner’s perspective.
Findings
The living wage now has a well-established place within the hierarchy of pay demands adopted by UK trade unions. This continues a tradition of unions supporting norms and regulations as an adjunct to collective bargaining. However, support had to be achieved through a process of negotiation with the broader UK living wage campaign.
Practical implications
The paper concludes that there are good prospects for the living wage, and thus for the continued trade union support.
Social implications
The living wage standard is seen as having a strong moral basis, which often helps to win agreement with good employers. This results in a steady stream of workers out of in-work poverty. The credit for such pay increases is often shared between employers and trade unions.
Originality/value
The paper is written by a practitioner with inside knowledge and experience of the entire course of the living wage campaign in the UK and how it has been adopted and integrated by trade unions.
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Varuna Dreepaul-Dabee and Verena Tandrayen-Ragoobur
This paper aims to examine the employment effect of the minimum wage in Mauritius, a country that has recently introduced an economy-wide national minimum wage. As women have low…
Abstract
Purpose
This paper aims to examine the employment effect of the minimum wage in Mauritius, a country that has recently introduced an economy-wide national minimum wage. As women have low labor force participation rate and higher unemployment rate compared to men, this study sheds light on the impact of the national minimum wage on male and female employment.
Design/methodology/approach
A conceptual framework based on the labor–leisure model of Blundell et al. (2007) incorporating the minimum wage as an important variable influencing the employment decision of the individual serves as the methodological backdrop of this paper. It applies the difference-in-difference estimation technique and uses micro data from the Continuous Multi-Purpose Household Survey for the period 2017–2019.
Findings
The results show that minimum wage has a significant negative impact on overall employment. With the imposition of the national minimum wage, the probability that an individual, currently earning less than the minimum wage, remains employed is 0.525 lower than that of a worker earning above the minimum wage level. Moreover, using sex-disaggregated data, the analysis demonstrates the negative employment effects of the minimum wage adversely impact women more than men.
Originality/value
This is a first attempt to estimate the effect of the newly introduced national minimum wage on employment in Mauritius. While the effects of a minimum wage vary across different segments of the economy, this study adopts a gender perspective by comparing the impact of the minimum wage on male and female employment.
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