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The purpose of this paper is to show that for some key topics on labour economics such as the effect of seniority and job mobility in wages, it is important to explicitly consider firm fixed effects. The author also wants to test whether the importance of firm in explaining wage dispersion is higher or lower in Spain than in other European countries.

The author estimates an individual wage equation where firm and workers effects are considered and the estimation process control for censored wages. This exercise is performed for the Spanish economy over the course of a whole business cycle, i.e., 2000-2015.

The author demonstrates that Spanish firms contribute to explain around 27 per cent of the individual wage heterogeneity but more importantly around 74 per cent of inter-industry wage differentials. In both cases, this contribution is mainly related to large dispersion in firm’s wage policies. The process of positive sorting of workers across firms or industries does not play an important role. Interestingly, the importance of firm’s wage policies in explaining individual wage dispersion has increased over the current Big Recession.

The results confirm that firms set wages and, henceforth, are partially responsible for individual wage heterogeneity but more importantly for inter-industrial wage dispersion.

The exercise is performed under optimal conditions because the author uses a longitudinal matched employer-employee data set, observed wages are at a monthly frequency, and implements an estimation method suitable for censored models with two high-dimensional fixed effects. This is the first study that looks deeply into the role of firms in explaining wage heterogeneity at the individual and industry level in Spain and along the current Big Recession.

Up to date, it remains an unresolved issue how firms shape inequality in interaction with mechanisms of stratification at the individual and occupational-level. Accordingly, the authors ask whether workers of different occupational classes are affected to different degrees by between-firm wage inequality. In light of the recent rise of overall wage inequality, answers to this question can contribute to a better understanding of the role firms play in this development. The authors argue and empirically test that whether workers are able to benefit from firms’ internal or external strategies for flexibility depends on resources available at the individual and occupational level. The paper aims to discuss these issues.

Matched employer-employee data from official German labour market statistics are used to estimate firm-specific wage components, which are then regressed on structural characteristics of firms.

Between-firm wage effects of internal labour markets are largest among unskilled workers and strongly pronounced among qualified manual workers. Effects are clearly smaller among classes of qualified and high-qualified non-manual workers but have risen sharply for the latter class from 2005 to 2010.

The most disadvantaged workers in the labour market are also most contingent upon employers’ increasingly heterogeneous policies of recruitment and remuneration.

This paper combines insights from sociological and economic labour market research in order to formulate and test the new hypothesis that between-firm wage effects of internal labour markets are larger for unskilled than for qualified workers.

Less educated supervisors create worker status incongruence, a violation of social norms that signals advancement uncertainty and job ambiguity for workers, and leads to negative behavioral and well-being outcomes. The purpose of this paper is to compare education levels of supervisors with their workers and measure the correlation between relative supervisor education and worker job satisfaction.

Using the only wave of the 1979 National Longitudinal Survey of Youth that identifies education levels of both supervisor and worker, a series of ordered probit estimates describe the relationship between supervisor education levels and subordinate worker well-being. Extensive controls, sub-sample estimates and a control for sorting confirm the estimates.

Worker well-being is negatively correlated with having a less educated supervisor and positively correlated with having a more educated supervisor. This result is robust to a number of alternative specifications. In sub-sample estimates, workers highly placed in an organization’s hierarchy do not exhibit reduced well-being with less educated supervisors.

A limitation is the inability to control for worker fixed effects, which may introduce omitted variable bias into the estimates.

The paper is the first to introduce relative supervisor–worker education level as a determinant of worker well-being.

The purpose of this paper is to analyze how long-run unemployment of former apprentices depends on the size of their training firm and their ability.

The authors use a large administrative data set that follows graduated apprentices during their working life. They show that training in large and medium-sized firms is associated with considerably less unemployment. This, however, may simply be the result of sorting processes, i.e. larger training firms with higher wage levels attract and choose the most able young workers. Therefore, the authors use a proxy for ability to estimate and control for the impact of ability on long-run unemployment. They assume that rank-order tournaments for the most attractive training positions take place and take into account an institutional peculiarity of the German training system, the empirically observable regional immobility of apprentices. Accordingly, they use a region-specific ranking based on training plants’ size or median wages, respectively, to proxy for apprentices’ ability.

The negative association between training plant size and long-run unemployment is muted but still statistically well determined even after controlling for the rank of an individual’s training firm in the local plant size distribution or the local wage distribution, respectively. Thus, the rank itself is a predictor for long-run unemployment of apprentices. The fact that the position in the local size distribution matters conditional on plant size shows that there is a local competition for training places.

Lacking mobility may increases aggregate unemployment, as mobility reduces the risk of unemployment.

The results imply that supporting regional mobility of young workers, e.g., by informing them better about existing mobility subsidies and dormitories for apprentices and by creating additional mobility incentives is warranted.

This is the first study to investigate long-run unemployment of former apprentices. Furthermore, the authors develop new variables to proxy for ability.

Employer-provided benefits are a large and growing share of compensation costs. In this paper, I consider three factors that can affect the value created by employer-sponsored benefits. First, firms have a comparative advantage (e.g., due to scale economies or tax treatment) in purchasing relative to employees. This advantage can vary across firms based on size and other differences in cost structure. Second, employees differ in their valuations of benefits and it is costly for workers to match with firms that offer the benefits they value. Finally, some benefits can reduce the marginal cost to an employee of extra working time. I develop a simple model that integrates these factors. I then generate empirical implications of the model and use data from the National Longitudinal Survey of Youth to test these implications. I examine access to employer-provided meals, child care, dental insurance, and health insurance. I also study how benefits are grouped together and differences between benefits packages at for-profit, not-for-profit, and government employers. The empirical analysis provides evidence consistent with all three factors in the model contributing to firms’ decisions about which benefits to offer.

Non-profit organizations (NPOs) are exposed to a highly competitive environment in which they are forced to grow their commercial activity to acquire additional financial resources. This study aims to create an understanding of how NPOs involved in textile reuse as a revenue-generating programme manage their reverse supply chains (RSC).

The research involves an embedded single-case study of NPOs in Finland involved in post-use textile collection. The main data sources are semi-structured interviews and participant observations.

This study is inspired by the microfoundations movement and identifies the underlying microfoundations of the NPOs’ capabilities for managing RSC for textile reuse. The study contributes to the literature by demonstrating NPOs’ lower-level, granular practices and their adaptations for achieving quality outcomes in textile reuse.

The findings have context sensitivity and apply to the NPOs which operate in a context similar to Finland, such as in other Nordic countries.

This study continues the discussion on the adoption of “business-like” practices in the NPOs’ pursuit of additional revenue streams to finance humanitarian work. The findings of this study can also be transferred to the growing area of domestic textile circularity.

Using the case of NPOs in textile reuse, the study illustrates how RSC management can serve a social, non-profit cause and transform unwanted textile products into a source of fundraising for humanitarian work.

This enriches the understanding of NPOs’ practices within the scope of revenue-generating programmes by examining one of them – textile reuse through charity shops from an RSC perspective.

Purpose – We analyze segregation between immigrants and natives at the firm level and explore the connection between segregation and wage inequality in Switzerland.

Methodology/Approach – Our approach accounts for the interaction between skill level and immigration status (work permit). First, we calculate exposure rates in order to analyze segregation at the firm level along these two dimensions. Second, we examine the role of segregation in the explanation of wage inequality between different skill–nationality groups. We use data from the Swiss Wage Structure Survey 2002, an employer–employee database that records individual wages among a very large sample of establishments in all industries, covering approximately 42,000 firms and 1 million workers.

Findings – Our results show that interfirm segregation is particularly pronounced for unskilled foreign workers and for recently arrived, highly skilled foreigners. The former earn lower wages than equally skilled Swiss workers, and the latter are paid higher wages than highly skilled Swiss workers. In both cases, interfirm segregation accounts for almost the entire wage differential.

Originality/Value of paper – This paper presents a generalization of the approach used by Groshen (1991) to the multigroup case by defining segregation with respect to the two dimensions of nationality and skill. The use of multigroup exposure rates is common in studies of neighborhood segregation (e.g., Bayer et al., 2004), but our paper shows that they can also be fruitfully applied in the analysis of interfirm segregation and wage inequality.

The purpose of this paper is to analyse differences in overall job satisfaction and specific job domain satisfaction among PhDs employed in different sectors four years after completing their doctorate degrees. The author take job satisfaction as a comprehensive proxy of perceived job quality. The author draw on data from two successive cohorts of PhD graduates from public universities of Catalonia (Spain).

First, the author estimate covariate-adjusted job satisfaction differentials for PhD holders employed in different employment sectors, namely: university, research institutes, public sector (government and public administration) and private sector. A stepwise inclusion of job-related covariates enables appreciating the underlying mechanisms that that generate the observed job satisfaction differentials across sectors. Second, the author take into account the endogenous sorting of PhDs into different sectors by jointly modelling sector choice and job satisfaction, where the former is assumed to follow a mixed multinomial logit model.

The results indicate that PhD holders employed outside academic and research jobs are more satisfied with the pecuniary facets of their work, but significantly less satisfied with non-monetary aspects of job quality. The selectivity-corrected job satisfaction differentials highlight the importance of self-selection and confirm that PhD holders suffer a penalisation for working in non-academic occupations, thus revealing the existence of “academic rents”.

This is the first paper that presents a systematic and consistent analysis of job satisfaction differentials among PhD holders that work in different types of occupations, taking into account that sector choice is an endogenous variable, potentially related to unobserved traits that affect job satisfaction. The results are rich of policy implications, which are especially relevant in the light of the existing debate regarding the excess of PhD in the labour market of several European Countries and their subsequent risk of underemployment.

This paper seeks to explore whether temporary jobs are a port of entry into permanent employment and to argue that the answer crucially depends on the type of temporary contracts being considered.

The paper bases its empirical evidence on a longitudinal sample of labour market entrants in Italy and estimates dynamic multinomial logit models with fixed effects to allow for the non‐random sorting of workers into the different types of contracts.

The authors show that the transition to permanent employment is more likely for individuals who hold any type of temporary contract than for the unemployed, thus broadly confirming the existence of port‐of‐entry effects. Yet, not all temporary contracts are the same. An order among non‐standard contracts with respect to the probability of taking an open‐ended job emerges, with training contracts at the top, freelance work at the bottom, and fixed‐term contracts outperforming apprenticeships. Strong SSC rebates, lack of training requirements, and low legal constraints concerning renewals result in poor port‐of‐entry performance, as in the case of freelance contracts. Instead, mandatory training and more binding legal constraints on the use, extension, and renewals of training contracts tend to enhance the probability of getting a standard job.

Most of the existing empirical literature aggregates temporary contracts in a single category, thereby ignoring a relevant source of heterogeneity.