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Using the Canadian Census of 2016, the present study examines the Black and White gap in compensating differentials for their commute to work.
Abstract
Purpose
Using the Canadian Census of 2016, the present study examines the Black and White gap in compensating differentials for their commute to work.
Design/methodology/approach
The data are from the Canadian Census of 2016. The standard Mincerian wage regression, augmented by commute-related variables and their confounders, is estimated by OLS. The estimations use sample weights and heteroscedasticity robust standard errors.
Findings
In the standard Mincerian wage regressions, Black men are found to earn non-negligibly less than White men. No such gap is found among women. When the Mincerian wage equation is augmented by commute duration and its confounders, commute duration is revealed to positively predict wages of White men and negatively associate with wages of Black men. At the same time, in the specifications including commute duration and its confounders, the coefficient for the dummy variable identifying Black men is positive with a non-negligible size. The latter pattern indicates wage discrepancies among Black men by their commute duration. Again, no difference is found between Black and White women in these estimations.
Research limitations/implications
The main caveat is that due to data limitations, causal estimates could not be produced.
Practical implications
For the Canadian working men, the uncovered patterns indicate both between and within race gaps in the impact of commuting on wages. Particularly, Black men seem to commute longer towards relatively lower paying jobs, while the opposite holds for their White counterparts. However, Black men who reside close to their work earn substantially more than both otherwise identical White men and Black men who live far away from their jobs. The implications for research and policy are discussed.
Originality/value
This is the first paper focused on commute compensating differentials by race using Canadian data.
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Leandro Pinheiro Vieira and Rafael Mesquita Pereira
This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.
Abstract
Purpose
This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.
Design/methodology/approach
Using data from the 2019 National Health Survey (PNS), we initially address the sample selection bias concerning labor market participation by using the Heckman (1979) method. Subsequently, the decomposition of income between smokers and nonsmokers is analyzed, both on average and across the earnings distribution by employing the procedure of Firpo, Fortin, and Lemieux (2009) - FFL decomposition. Ñopo (2008) technique is also used to obtain more robust estimates.
Findings
Overall, the findings indicate an income penalty for smokers in the Brazilian labor market across both the average and all quantiles of the income distribution. Notably, the most significant differentials and income penalties against smokers are observed in the lower quantiles of the distribution. Conversely, in the higher quantiles, there is a tendency toward a smaller magnitude of this gap, with limited evidence of an income penalty associated with this habit.
Research limitations/implications
This study presents an important limitation, which refers to a restriction of the PNS (2019), which does not provide information about some subjective factors that also tend to influence the levels of labor income, such as the level of effort and specific ability of each worker, whether smokers or not, something that could also, in some way, be related to some latent individual predisposition that would influence the choice of smoking.
Originality/value
The relevance of the present study is clear in identifying the heterogeneity of the income gap in favor of nonsmokers, as in the lower quantiles there was a greater magnitude of differentials against smokers and a greater incidence of unexplained penalties in the income of these workers, while in the higher quantiles, there was low magnitude of the differentials and little evidence that there is a penalty in earnings since the worker is a smoker.
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The study's objective is to measure the gender gap in quit behavior, consider whether it has changed over time and determine whether parenthood affects the gender gap in quit…
Abstract
Purpose
The study's objective is to measure the gender gap in quit behavior, consider whether it has changed over time and determine whether parenthood affects the gender gap in quit decisions.
Design/methodology/approach
The quantitative study design leverages two separate USA data sources to analyze the gender gap in quits over time. Two separate cohorts confirm the study's results in Logit, ordinary least squares (OLS) and fixed effects estimations, using the Current Population Survey (CPS) and the National Longitudinal Survey of Youth (NLSY).
Findings
After controlling for demographic and job characteristics, individual and geographic fixed effects and local unemployment rates, the study finds that the gender gap in voluntary turnover has declined over time and that parenthood's effect on quit behavior has converged between genders.
Originality/value
Women earn less than men. One common explanation is women's propensity to interrupt their careers, often voluntarily, more so than men. Yet, the determinants and trends of this gender gap in quit behavior has not been given much attention in the literature, including the role of parenthood.
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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Kenta Ikeuchi, Kyoji Fukao and Cristiano Perugini
The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the…
Abstract
Purpose
The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the dynamics of overall wage and income inequality in the past decades. The authors focus on three employer-level features that can be associated with asymmetries in the employment relation orientation adopted for college and non-college-educated employees: (1) size, (2) the share of standard employment and (3) the pervasiveness of incentive pay schemes.
Design/methodology/approach
The authors' establishment-level analysis (data from the Basic Survey on Wage Structure (BSWS), 2005–2018) focusses on Japan, an economy characterised by many unique economic and institutional features relevant to the aims of the authors' analysis. The authors use an adjusted measure of firm-specific college wage premium, which is not biased by confounding individual and establishment-level factors and reflects unobservable characteristics of employees that determine the payment of a premium. The authors' empirical methods account for the complexity of the relationships they investigate, and the authors test their baseline outcomes with econometric approaches (propensity score methods) able to address crucial identification issues related to endogeneity and reverse causality.
Findings
The authors' findings indicate that larger establishment size, a larger share of regular workers and more pervasive implementation of IPSs for college workers tend to increase the college wage gap once all observable workers, job and establishment characteristics are controlled for. This evidence corroborates the authors' hypotheses that a larger establishment size, a higher share of regular workers and a more developed set-up of performance pay schemes for college workers are associated with a better capacity of employers to attract and keep highly educated employees with unobservable characteristics that justify a wage premium above average market levels. The authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.
Originality/value
The authors' contribution to the existing knowledge is threefold. First, the authors combine the economics and management/organisation literature to develop new insights that underpin the authors' testable empirical hypotheses. This enables the authors to shed light on employer-level drivers of wage differentials (size, workforce composition, implementation of performance-pay schemes) related to many structural, institutional and strategic dimensions. The second contribution lies in the authors' measure of the “adjusted” college wage gap, which is calculated on the component of individual wages that differs between observationally identical workers in the same establishment. As such, the metric captures unobservable workers' characteristics that can generate a wage premium/penalty. Third, the authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.
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A growing body of research finds that gig economy platforms use gamification to enhance managerial control. Focusing on technologically mediated forms of gamification, this…
Abstract
A growing body of research finds that gig economy platforms use gamification to enhance managerial control. Focusing on technologically mediated forms of gamification, this literature reveals how platforms mobilize gig workers’ work effort by making the labour process resemble a game. This chapter contends that this tech-centric scholarship fails to fully capture the historical continuities between contemporary and much older occurrences of game-playing at work. Informed by interviews and participatory observations at two food delivery platforms in Amsterdam, I document how these platforms’ piece wage system gives rise to a workplace dynamic in which severely underpaid delivery couriers continuously employ game strategies to maximize their gig income. Reminiscent of observations from the early shop floor ethnographies of the manufacturing industry, I show that the game of gig income maximization operates as an indirect modality of control by (re)aligning the interests of couriers with the interests of capital and by individualizing and depoliticizing couriers’ overall low wage level. I argue that the new, algorithmic technologies expand and intensify the much older forms of gamified control by infusing the organizational activities of shift and task allocation with the logic of the piece wage game and by increasing the possibilities for interaction, direct feedback and immersion. My study contributes to the literature on gamification in the gig economy by interweaving it with the classic observations derived from the manufacturing industry and by developing a conceptualization of gamification in which both capital and labour exercise agency.
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Magdalena Adamus and Eva Ballová Mikušková
Following Goldberg’s paradigm, this study aims to investigate whether women and men are at risk of differential treatment by HR professionals in recruitment and dismissal…
Abstract
Purpose
Following Goldberg’s paradigm, this study aims to investigate whether women and men are at risk of differential treatment by HR professionals in recruitment and dismissal processes and focuses on the impact of exogenous factors, such as discrimination and gender norms.
Design/methodology/approach
A total of 155 individuals with experience as HR professionals participated in a randomised vignette study. In Task 1, they evaluated three applicants (all three either men or women) for the post of regional sales manager based on the applicant’s competences, hireability, likeability and proposed salary. In Task 2, participants were asked to select one of the six employees for dismissal and provide a rationale for their choice.
Findings
In Task 1, female applicants were offered significantly lower salaries than male applicants. In addition, average and low-performing male applicants were assessed as less likeable than identical females. In Task 2, the willingness to dismiss increased when employees with frequent absences were presented as men.
Originality/value
By involving a sample of HR professionals, the study contributes to the literature and practice by highlighting the differential treatment of women and men in the labour market. While women are likely to experience direct discrimination in the form of significantly lower pay offers, men may suffer a backlash due to lower educational attainment and absenteeism. The findings suggest that the labour market situation for women is complex and affected by norms and expectations requiring men to behave in a masculine and career-oriented way.
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Relationships have changed dramatically in the last 50 years. Fewer couples are marrying, more are cohabiting. Reasons for this shift include more attractive labor market…
Abstract
Relationships have changed dramatically in the last 50 years. Fewer couples are marrying, more are cohabiting. Reasons for this shift include more attractive labor market opportunities for women and changing social norms, but the shift may have consequences of its own. A number of models predict that those cohabiting will specialize less than those marrying. Panel data on time use – particularly housework time – as well as on the degree of specialization in more narrowly defined household tasks from the 2001–2019 waves of the Household, Income and Labour Dynamics in Australia survey are used to test this prediction.
The time use data for men provides only limited supporting evidence for specialization. The results for women are much stronger. Women who marry without first cohabiting increase their reported housework time more than those who enter cohabitations (by 3.7 hours versus 1.2 hours). The latter generally make up a third of the difference if they do marry. Expanding the analysis to other uses of time yields some further evidence of specialization.
Survey responses on the degree of specialization are more informative. The raw data show substantial intrahousehold specialization and further analysis reveals that on average married couples specialize more than cohabiting couples. Adding couple-specific fixed effects reveals that specialization increases when cohabiting couples marry. Interestingly, there does not appear to be a substantial tradeoff between tasks; partners who report specializing more on one task are more likely to report specializing on other tasks as well. Given the important roles couples have in family formation and the labor market, it is important to understand this intrahousehold behavior.
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Inflation and federal monetary efforts to control it with interest rate hikes have very real and overwhelmingly negative consequences on US local governments following the onset…
Abstract
Purpose
Inflation and federal monetary efforts to control it with interest rate hikes have very real and overwhelmingly negative consequences on US local governments following the onset of COVID-19. This study explores the post-pandemic inflationary environment of US local governments; examines the impacts of inflation and high interest rates on local government revenue, operating costs, capital costs, and debt service; reviews local government inflation management strategies, including the use of intergovernmental revenue; and assesses ongoing threats to local government financial health and financial resilience.
Design/methodology/approach
This study uses trend and literature analysis to comment on current issues local governments face.
Findings
The study finds that the growth of property values and resulting stability of property tax revenue has been important to local government revenues; that local governments bear very real burdens as operating and capital costs increase; and that the combination of high inflation and interest rates affects local government debt issuance by negatively affecting credit quality and interest costs, leading to municipal market contraction. Local governments have benefitted tremendously from intergovernmental revenue, but would be ill-advised to rely on it.
Practical implications
Vulnerabilities owing from revenue mismatch with the economy; inadequate affordable housing, inequality, and social issues; a changing workforce and tight labor market; climate change; and federal fiscal contraction—all of which are exacerbated by high inflation and interest rates—require local governments to act strategically, boldly and collaboratively to achieve fiscal health and financial resilience, and to realize positive returns of investments in people and capital.
Originality/value
This work is unique in addressing the post-pandemic impact of inflation and interest rates on local governments.
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A lack of sufficient gainful employment opportunities in developing countries means that those at the bottom of the income ladder resort to self-employment for survival. While…
Abstract
Purpose
A lack of sufficient gainful employment opportunities in developing countries means that those at the bottom of the income ladder resort to self-employment for survival. While self-employment equalises inequality by providing earning opportunities to such individuals due to the ease of entry, it also creates a competitive environment among the self-employed, consequently widening inequality. In light of this, the study aims to determine the optimal level at which self-employment narrows inequality.
Design/methodology/approach
Five-yearly average data from 72 developing countries covering 2000–2019 is used. Inequality measures include Gini, and self-employment includes total, male and female participation levels. The empirical analysis is based on the dynamic two-step system Generalized Method of Moments (GMM) estimation approach, two-stage instrumental variables (2 SLS IV) approach and Sasabuchi (1980) and Lind and Mehlum (2010) test. Several robustness checks are used to validate the findings.
Findings
Prima facie, the study's findings suggest that self-employment equalises inequality in developing countries. The income-equalising effect can be seen, however, when the total, male and female self-employment levels are below the optimal of 54.22% of total employment, 52.50% of male employment and 54.19% of female employment, respectively. Inequality widens when self-employment exceeds these optimal levels. Further, the income-narrowing effect of self-employment is larger than its income-widening effect. When self-employment is below its optimal level, it reduces inequality 80 times more effectively than when it widens above the optimal levels. The corresponding figures for male and female self-employment are 90 and 52, respectively. Second, the income-equalising effects of self-employment are gender-specific.
Practical implications
Developing countries striving to achieve SDG 10 should limit self-employment to the above-mentioned levels. To this end, an inclusive approach to reducing inequality requires these countries to use selective and targeted policy interventions to create gainful employment opportunities for those above the identified optimal levels and eventually assist them in utilising these opportunities.
Originality/value
To the best of the author’s knowledge, this is the first study to determine the optimal levels at which self-employment equalises income in developing countries. As such, it makes novel contributions to both labour and development economics.
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