Search results

1 – 10 of 328
Article
Publication date: 18 December 2023

Arpit Gupta and Arya Kumar Srustidhar Chand

The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

Abstract

Purpose

The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

Design/methodology/approach

The authors show theoretically with a model of spillover that if foreign firms (receiving FDI) have a negative spillover effect on domestic firms (not receiving FDI), then the level of capital and skilled workers in the domestic firms falls down. Consequently, the authors conduct an empirical analysis by using system GMM estimation technique on the firm-level data of the Indian organised manufacturing sector.

Findings

The authors show that wage inequality worsens when there is negative spillover effects like competition spillover or skill spillover effect of FDI in India.

Originality/value

To the best of the authors’ knowledge, this is the first attempt to measure the various spillover effects of FDI on the wage inequality in the Indian manufacturing industries by using firm-level data.

Details

Indian Growth and Development Review, vol. 17 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 19 October 2023

Omid Sabbaghi

This article aims to relate investments in human capital to the United Nations Sustainable Development Goals (UN SDGs), and examine the spending levels necessary to achieve high…

Abstract

Purpose

This article aims to relate investments in human capital to the United Nations Sustainable Development Goals (UN SDGs), and examine the spending levels necessary to achieve high performance in related SDG sectors for Azerbaijan.

Design/methodology/approach

Employing data from the World Bank, the empirical approach undertaken in this study relies on peer analysis by examining spending levels for nations exhibiting similar income levels and geographical proximity to Azerbaijan.

Findings

This study estimates that total spending in education would need to increase by 0.4 percentage points of GDP by 2030, while total spending in health would need to increase by 5.9 percentage points of GDP by 2030 for Azerbaijan.

Originality/value

This study contributes to the literature by conducting an empirical analysis in which other nations can emulate in measuring their relative progress on human capital investments and related UN SDGs.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0137

Details

International Journal of Social Economics, vol. 51 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 4 April 2024

Yong H. Kim, Bochen Li, Miyoun Paek and Tong Yu

We study the potential effects of pension underfunding on corporate investment, financial constraints and improved employee bonding using 10 Pacific-Basin countries (including the…

Abstract

We study the potential effects of pension underfunding on corporate investment, financial constraints and improved employee bonding using 10 Pacific-Basin countries (including the United States, Australia, and eight Asian countries) at heterogeneous economic development stages and different regulatory environments. We document that corporate pensions are significantly underfunded in most countries of our sample in the period of 2001–2017, when interest rates were ultralow in most countries. In addition, firms from countries with stronger employee protection and more generous retirement benefits tend to show higher levels of underfunding in their defined benefit (DB) pension plans. To the extent of pension underfunding imposing constraints on corporate investment, we find that firms in these countries can face more constraints on investment when their pension is underfunded.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-83753-865-2

Keywords

Article
Publication date: 22 July 2022

Canh Thi Nguyen, Thanh Quang Ngo and Quan Hong Nguyen

The paper aims to assess the impact of weather-induced shocks on household food consumption in the rural Vietnamese Mekong Delta (VMD) through the case of Long An province and…

Abstract

Purpose

The paper aims to assess the impact of weather-induced shocks on household food consumption in the rural Vietnamese Mekong Delta (VMD) through the case of Long An province and evaluate the effectiveness of widely used coping strategies in mitigating weather-related shock impacts.

Design/methodology/approach

The system generalized method of moments (GMM) estimation method is applied to explore information on shock incidence, recovery, and time occurrences. The paper uses a sample of 272 repeated farming households from 5-wave survey data from 2008 to 2016, resulting in 1,360 observations.

Findings

The paper confirms the robust negative effect of a natural shock on food consumption. Additionally, using savings proves to be the most potent measure to smooth food consumption. Other favorable coping strategies are “getting assistance from relatives, friends” or “getting assistance from the Government, and non-government organizations (NGOs).” The mitigating effects are also traced in the current analysis.

Research limitations/implications

Using caution when generalizing the results from Long An to the whole VMD is reasonable. The rather limited observations of coping strategies do not allow the authors to analyze any specific strategy.

Originality/value

The proposed approach employs the GMM technique and controls for endogenous coping strategies and thus provides accurate estimates of the effects of weather-related shocks and the mitigation effectiveness in the rural VMD.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 29 April 2024

Giovanni Gallo, Silvia Granato and Michele Raitano

The Covid-19 pandemic appears to have engendered heterogeneous effects on individuals’ labour market prospects. This paper focuses on two possible sources of a heterogeneous…

Abstract

Purpose

The Covid-19 pandemic appears to have engendered heterogeneous effects on individuals’ labour market prospects. This paper focuses on two possible sources of a heterogeneous exposition to labour market risks associated with the pandemic outbreak: the routine task content of the job and the teleworkability. To evaluate whether these dimensions played a crucial role in amplifying employment and wage gaps among workers, we focus on the case of Italy, the first EU country hit by Covid-19.

Design/methodology/approach

Investigating the actual effect of the pandemic on workers employed in jobs with a different degree of teleworkability and routinization, using real microdata, is currently unfeasible. This is because longitudinal datasets collecting annual earnings and the detailed information about occupations needed to capture a job’s routine task content and teleworkability are not presently available. To simulate changes in the wage distribution for the year 2020, we have employed a static microsimulation model. This model is built on data from the Statistics on Income and Living Conditions (IT-SILC) survey, which has been enriched with administrative data and aligned with monthly observed labour market dynamics by industries and regions.

Findings

We measure the degree of job teleworkability and routinization with the teleworkability index (TWA) built by Sostero et al. (2020) and the routine-task-intensity index (RTI) developed by Cirillo et al. (2021), respectively. We find that RTI and TWA are negatively and positively associated with wages, respectively, and they are correlated with higher (respectively lower) risks of a large labour income drop due to the pandemic. Our evidence suggests that labour market risks related to the pandemic – and the associated new types of earnings inequality that may derive – are shaped by various factors (including TWA and RTI) instead of by a single dimension. However, differences in income drop risks for workers in jobs with varying degrees of teleworkability and routinization largely reduce when income support measures are considered, thus suggesting that the redistributive effect of the emergency measures implemented by the Italian government was rather effective.

Originality/value

No studies have so far investigated the effect of the pandemic on workers employed in jobs with a different degree of routinization and teleworkability in Italy. We thus investigate whether income drop risks in Italy in 2020 – before and after income support measures – differed among workers whose jobs are characterized by a different degree of RTI and TWA.

Details

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

Keywords

Expert briefing
Publication date: 24 April 2024

Elevating stagnant wages is Tokyo’s top priority and anti-deflation tool, necessary in creating a virtuous cycle of rising prices and incomes that boosts economic growth.

Details

DOI: 10.1108/OXAN-DB286634

ISSN: 2633-304X

Keywords

Geographic
Topical
Book part
Publication date: 8 April 2024

Radek Náplava

The polarisation of employment is a specific structural change in the labour market when the share of high and low-skilled workers increases and, simultaneously, the share of…

Abstract

The polarisation of employment is a specific structural change in the labour market when the share of high and low-skilled workers increases and, simultaneously, the share of middle-skilled workers decreases. The chapter analyses the effect of polarisation in Czechia and other Central European countries and describes how employment has changed from the perspective of skills regarding gender. The analysis is based on observing the changes in the share of high, middle and low-skilled workers evaluated on the basis of occupational classification over time. Results imply (with a few exceptions) polarisation of employment across all countries during the period between 1998 and 2021, even if we consider the distinction between males and females. Results confirm that employment polarisation has also become a prevalent phenomenon in Central European countries during the last two decades. Finally, this chapter also summarises the economic motivation for studying polarisation phenomenon.

Details

Modeling Economic Growth in Contemporary Czechia
Type: Book
ISBN: 978-1-83753-841-6

Keywords

Article
Publication date: 29 March 2024

Cole J. Crider, Alireza Aghaey, Jason Lortie, Whitney O. Peake and Shaun Digan

The purpose of this study is to empirically examine how individuals’ hybrid entrepreneurial venturing activities (HEVA) influence key characteristics associated with one’s wage…

Abstract

Purpose

The purpose of this study is to empirically examine how individuals’ hybrid entrepreneurial venturing activities (HEVA) influence key characteristics associated with one’s wage work, namely creativity and job satisfaction.

Design/methodology/approach

Through a cross-sectional self-administered survey design, data were gathered from 465 US-based useable responses via Amazon Mechanical Turk and analyzed using structural equation modeling (SEM).

Findings

Findings show individuals reporting higher levels of HEVA – such as creating, founding, starting or running – tend to also exhibit higher levels of creativity and job satisfaction in their workplaces. Findings further reveal that income negatively moderates the relationship between creativity and wage work job satisfaction.

Practical implications

By providing a better understanding of how engaging in HEVA can impact creativity and job satisfaction, this study has important implications for (1) managers seeking to influence key employee outcomes and (2) employees considering such entrepreneurial activities.

Originality/value

This paper adds to the growing scholarly and practitioner interest in hybrid entrepreneurship and its outcomes. Specifically, the paper adds new insights regarding how engaging in HEVA can influence individual skills (i.e. creativity) or organizational goals (i.e. employee job satisfaction). In doing so, the paper also uses insights from the intrinsic/extrinsic motivation literature to suggest how extrinsic motivators (such as income) can interact with intrinsically motivated behaviors (such as creativity) in influencing employee outcomes in wage work. Finally, the paper contributes to the growing interest in applying the empowerment perspective within entrepreneurship research by exploring where and how empowerment may occur.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 2 April 2024

Sofiia Dolgikh and Bogdan Potanin

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is…

Abstract

Purpose

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is efficient then higher levels of education usually associated with greater returns on labor market. To evaluate the efficiency of Russian education system we aim to estimate the effect of vocational education and different levels of higher education on wages.

Design/methodology/approach

We use data on 8,764 individuals in the years 2019–2021. Our statistical approach addresses two critical issues: nonrandom selection into employment and the endogeneity of education choice. To tackle these problems, we employed Heckman’s method and its extension that is a structural model which addresses the issue of self-selection into different levels of education.

Findings

The results of the analysis suggest that there is a significant heterogeneity in the returns to different levels of education. First, higher education, in general, offers substantial wage premiums when compared to vocational education. Specifically, individuals with specialist’s and bachelor’s degrees enjoy higher wage premiums of approximately 23.59–24.04% and 16.43–16.49%, respectively, compared to those with vocational education. Furthermore, we observe a significant dis-parity in returns among the various levels of higher education. Master’s degree provides a substantial wage premium in comparison to both bachelor’s (19.79–20.96%) and specialist’s (12.64–13.41%) degrees. Moreover, specialist degree offers a 7.16–7.55% higher wage premium than bachelor’s degree.

Practical implications

We identify a hierarchical pattern in the returns associated with different levels of higher education in Russia, specifically “bachelor-specialist-master.” These findings indicate that each level of education in Russia serves as a distinct signal in the labor market, facilitating employers' ability to differentiate between workers. From a policy perspective, our results suggest the potential benefits of offering opportunities to transition from specialist’s to master’s degrees on a tuition-free basis. Such a policy may enhance access to advanced education and potentially lead to higher returns for individuals in the labor market.

Originality/value

There are many studies on returns to higher education in Russia. However, just few of them estimate the returns to different levels of higher education. Also, these studies usually do not address the issue of the endogeneity arising because of self-selection into different levels of education. Our structural econometric model allows addressing for this issue and provides consistent estimates of returns to different levels of education under the assumption that individuals with higher propensity to education obtain higher levels of education.

Details

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

Keywords

Open Access
Article
Publication date: 1 April 2024

Ying Miao, Yue Shi and Hao Jing

This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in…

Abstract

Purpose

This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in manufacturing firms.

Design/methodology/approach

The relationships are tested using an empirical method, constructing regression models, by collecting 1,240 manufacturing firms and 9,029 items listed on the A-share market in China from 2013 to 2020.

Findings

The results indicate that digital transformation has a positive effect on manufacturing companies’ labor income share. Technological innovation can mediate the effect of digital transformation on labor income share. Industry–university–research cooperation can positively moderate the promotion effect of digital transformation on labor income share but cannot moderate the mediating effect of technological innovation. Heterogeneity analysis also found that firms without service-based transformation and nonstate-owned firms are better able to increase their labor income share through digital transformation.

Originality/value

This study provides a new path to increase the labor income share of enterprises to achieve common prosperity, which is important for manufacturing enterprises to better transform and upgrade to achieve high-quality development.

1 – 10 of 328