Search results

The authors’ goal in this paper is to study if there are long-run effects on the wages of those workers who entered the labour market overeducated but who have, over time, been able to overcome this situation by obtaining a job for which they are correctly matched.

This study universe is constituted by workers entering the labour market with a university degree between 2004 and 2012. The age range of these individuals is between 22 and 35 years old. With the data of the 8,359 selected individuals, the authors have constructed a balanced panel covering the period 2013–2017. This methodology is developed in two steps. First, the authors estimate a wage equation with the traditional variables and, second, the authors use the estimated coefficients of these variables to predict the wage paths of a representative individual in each group.

The main result the authors obtain indicates that the wages of those who manage to overcome an initial situation of overeducation do converge but very slowly to the respective wages of those others that entered the labour market correctly matched from the beginning. The authors consider this result to point towards the existence of scarring effects in wages induced by an initial situation of overeducation. The authors also present evidence, beyond education, about the influence that the occupational characteristics that a worker has on wages.

The factors that can influence the catching-up of wages are multiple, and it is not feasible to test all of them empirically. Therefore, the wage convergence process the authors present may also be influenced by other variables for which the authors do not have information.

This paper contributes to different branches of the labour market. First, the authors present new evidence within the literature dealing with the so-called scarring effects on wages related to the conditions entering the labour market. Secondly, this study’s results provide a new argument that complements those developed so far that explain a reduction in the wage skill premium detected among young graduates in Spain. Finally, this paper contributes to advancing research about the effects that overeducation has on wages.

The question the authors are attempting to answer in this paper can be formulated in the following terms: when a worker manages to overcome an initial situation of overeducation, what happens to his/her wage? Will it adjust quickly to the new working situation, or will we observe a slow convergence to the wages of workers with an employment history without overeducation situations? To the best of the authors’ knowledge, this topic has not yet been studied. Researchers have mostly focused their attention on comparing the wages of overeducated workers with the wages of those who are correctly matched. In this case, the authors compare the wages of correctly matched workers, but with the difference that some were initially overeducated and others were not.

The purpose of this paper is to estimate the effect of mobility on the apprentices’ wages.

Using a French longitudinal survey concerned with young people’s entry into the labor market and their subsequent employment trajectories, this paper estimates the impact of mobility on post-apprenticeship wages correcting for different selection bias.

Mobility is both voluntary and enforced. It combines imposed selection mechanisms and more active match searching behaviors on the part of apprentices. Apprentices who change employer do not have significant lower starting wages than those who remain in their training firms. Nevertheless, in the medium term, those who defer their moves tend to benefit more from their mobility. Those who move immediately see their wage rising less sharply.

The findings indicate that policy makers should be concerned with job mobility at the end of the apprenticeship contract. Manpower policies should focus on measures that enhance the transferability of accumulated skills and the acquisition of new skills by apprentices.

To the author’ best knowledge, this is the first paper studying the effect of mobility on apprentices’ wages in a dynamic perspective and correcting for the selection of different categories of mobility (immediate vs deferred mobility).

Empirical studies show that years of schooling are positively correlated with good health. The implication may go from education to health, from health to education, or from factors that influence both variables. We formalize a model that determines an individual’s demand for knowledge and health based on the causal effects, and study the impacts on the individual’s decisions of policy instruments such as subsidies on medical care, subsidizing schooling, income tax reduction, lump-sum transfers, and improving health at young age. Our results indicate that income redistribution policies may be the best instrument to improve welfare, while a medical care subsidy is the best instrument for longevity. Subsidies to medical care or education would require large imperfections in these markets to be more welfare improving than distributional policies.

The purpose of this integrative literature review was three-fold: to explore the phenomenon of women’s career interruptions as revealed by publications in the past two decades, to propose a new career decision tree model (CDTM) and to outline an agenda for future research.

The authors adopted the integrative literature review approach proposed by Torraco (2005, 2016) and used a mind mapping application called MindMeister to synthesize 64 identified articles.

The proposed CDTM can assist those who are interested in exploring individuals’ career decisions to think systematically about career influencers at different levels.

The CDTM is significantly different from existing career models and theories in that it explains women’s career interruptions in a context-sensitive manner. This model can assist human resource development professionals in analyzing the influencers of women’s career decisions and tackling individual problems level by level.

Purpose – Ascertaining the extent to which the generalized decline in union density, as well as the erosion in centralized bargaining structures and developments in other labor institutions, have contributed to rising within-country inequality.

Methodology – Econometric analysis of a newly developed dataset combining information on industrial relations and labor law, various dimensions of globalization, and controls for demand and supply of skilled labor for 51 Advanced, Central and Eastern European, Latin American, and Asian countries from the late 1980s to the early 2000s, followed by an analysis of 16 advanced countries over a longer time frame (from the late 1970s to the early 2000s).

Findings – In contrast to previous research, which finds labor institutions to be important determinants of more egalitarian wage or income distributions, the chapter finds that trade unionism and collective bargaining are no longer significantly associated with within-country inequality, except in the Central and Eastern European countries. These findings are interpreted as the result of trade unionism operating under more stringent structural constraints than in the past, partly as a result of globalization trends. In addition, despite much talk about welfare state crisis, welfare states, historically the result of labor's power and mobilization capacity, still play an important redistributive role, at least in advanced countries.

Practical implications – Union attempts at equalizing incomes by compressing market earnings seem ineffective and impractical in the current day and age. Unions should seek to increase the workers’ skill levels and promote an egalitarian transformation of the workplace. This type of “supply-side” egalitarianism is not a new strategy for unions, but is very much embedded in the unions’ DNA.

I use data from employers and longitudinal data from former/current recipients covering the period 1997 to early 2004 to analyze the relationship between job skills, job changes, and the evolution of wages. I analyze the effects of job skill requirements on starting wages, on-the-job training opportunities, wage growth prospects, and job turnover. The results show that jobs of different skill requirements differ in their prospects for earnings growth, independent of the workers who fill these jobs. Furthermore, these differences in wage growth opportunities across jobs are important determinants of workers’ quit propensities (explicitly controlling for unobserved worker heterogeneity). The determinants and consequences of job dynamics are investigated. The results using a multiplicity of methods, including the estimation of a multinomial endogenous switching model of wage growth, show that job changes, continuity of work involvement, and the use of cognitive skills are all critical components of the content of work experience that leads to upward mobility. The results underscore the sensitivity of recipients’ job transition patterns to changes in labor market demand conditions.