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Article
Publication date: 6 May 2014

Does minimum wage affect hours worked of paid employment in Indonesia?

Devanto Shasta Pratomo

The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force…

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Abstract

Purpose

The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey (Sakernas) data from 1996 to 2003.

Design/methodology/approach

This study employs Bourguignon-Fournier-Gurgand two-step procedure of sample selection corrections based on a multinomial logit model for a potential selection bias from a non-random sample. This study extends the specification by examining the effects of minimum wage on hours worked of paid employment separately across individuals in different groups of gender (male-female workers) and residences (urban-rural areas).

Findings

This study generally found that an increase in the minimum wage increases hours worked of the existing paid employees. The effects of the minimum wage on hours worked are stronger for female workers than male workers particularly in urban areas due to that female workers, particularly in urban areas, are mostly employed in industries which contain more low-wage workers. Comparing residences, the minimum wage coefficient in rural areas is slightly higher because of the structural transformation in Indonesia marked by a shift in employment from the agriculture sector to the other sectors that require more working hours.

Originality/value

The empirical studies of the effect of minimum wage on hours worked in developing countries are very limited. This study contributes to the literature by employing the sample selection corrections based on a multinomial logit for a potential selection bias from a non-random sample This study also extends the hours worked specification by analyzing the effects of minimum wage on hours worked separately across individuals in different groups of workers, in terms of gender (male-female workers) and their residences (urban-rural areas).

Details

International Journal of Social Economics, vol. 41 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/IJSE-01-2013-0009
ISSN: 0306-8293

Keywords

  • Employment
  • Labour
  • Wages

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Book part
Publication date: 1 October 2008

Transitions between unemployment and low pay

Lorenzo Cappellari and Stephen P. Jenkins

We model transitions between unemployment, low-paid and high-paid employment by British men using a first order Markov model with endogenous switching that also takes into…

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Abstract

We model transitions between unemployment, low-paid and high-paid employment by British men using a first order Markov model with endogenous switching that also takes into account the endogeneity of initial conditions, selection into employment, and sample attrition. Our estimates indicate that all three selectivity issues are non-ignorable. We demonstrate several interrelationships between the dynamics of (un)employment and low-paid work between one year and the next, represented by forms of (cross-)state dependence. Controlling for heterogeneity, the probability of a man having a low-paid job in one year depends not only whether he had a job a year before but also whether that job was low paid. The probability of his being employed at all depends on whether he had a job the previous year.

Details

Work, Earnings and Other Aspects of the Employment Relation
Type: Book
DOI: https://doi.org/10.1016/S0147-9121(08)28003-9
ISBN: 978-1-84950-552-9

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Article
Publication date: 4 February 2019

From first impressions to selection decisions: The role of dispositional cognitive motivations in the employment interview

Liviu Florea, Sorin Valcea, Maria Riaz Hamdani and Thomas W. Dougherty

The purpose of this paper is to investigate how individual interviewers’ dispositional cognitive motivations may influence interview interactions and outcomes. More…

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Abstract

Purpose

The purpose of this paper is to investigate how individual interviewers’ dispositional cognitive motivations may influence interview interactions and outcomes. More specifically, this study explores the influence of the need for cognition, need for cognitive closure, and accountability on the relationship between first impressions and selection decisions.

Design/methodology/approach

In total, 41 graduate students were assigned the role of interviewers and were tasked to interview 331 undergraduate students at a large Midwestern university. The selection interview was designed to recruit qualified undergraduate students to the MBA program of the university.

Findings

First impressions significantly influenced selection decisions, but did not influence interviewers’ behaviors. Moreover, multilevel analyses reveal that interviewers’ need for cognition and accountability moderate the relationship between first impression and selection decisions, albeit in different direction. Need for cognition strengthens, whereas accountability weakens the relationship between first impression and selection decision.

Research limitations/implications

A potential interviewer bias is apparent, where interviewers high on need for cognition tend to weight first impressions more in the decision process. However, this bias was not directly observable, since interviewers’ behaviors during the interview were not affected by first impressions.

Originality/value

The present study goes beyond previous research on first impressions in the employment interview, finding that dispositional differences account for the tendency to weigh first impressions in the selection decision.

Details

Personnel Review, vol. 48 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/PR-11-2017-0345
ISSN: 0048-3486

Keywords

  • Quantitative
  • Accountability
  • Employment interview
  • Need for cognition
  • First impressions
  • Need for cognitive closure

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Article
Publication date: 18 September 2017

Diversity, disparate impact, and discrimination pursuant to Title VII of US civil rights laws: A primer for management

Frank J. Cavico and Bahaudin Mujtaba

While the words diversity, disparate impact, and discrimination are commonly read and heard by working adults and professionals, they can at times be confusing and fearful…

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Abstract

Purpose

While the words diversity, disparate impact, and discrimination are commonly read and heard by working adults and professionals, they can at times be confusing and fearful to some managers. The purpose of this paper is to provide an overview of a specific aspect of US civil rights laws – the disparate impact theory. The authors provide an analysis based on the statute, case law interpreting, and applying the statute, administrative guidelines from the Equal Employment Opportunity Commission, as well as legal and management commentary. The paper illustrates the requirements of a plaintiff employee’s initial case based on the disparate impact theory. The challenging causation component which requires some degree of statistical evidence is given particular attention. Limitations to the paper are stated at the beginning; and recommendations to managers are explored and provided toward the end of the paper.

Design/methodology/approach

It is a legal paper which covers all the laws related to discrimination based on disparate impact and disparate treatment theories. Actual court cases up until this month and Americans laws related to this concept are reviewed and critically discussed.

Findings

The salient feature of disparate impact is that this legal theory allows a plaintiff job applicant or employee to sustain a case of illegal discrimination without providing any evidence of a discriminatory motive. As opposed to the disparate treatment liability is imposed based on disproportionate adverse results and not discriminatory intent.

Research limitations/implications

This paper deals with the disparate impact theory pursuant to Title VII of the Civil Rights Act. However, it must be pointed out that the disparate impact theory is also applicable to claims arising under the Americans with Disabilities Act and the Age Discrimination in Employment Act. Since the focus of this paper is Title VII federal and state constitutional issues, such as the applicability of the 14th Amendment’s Equal Protection clause that may arise in disparate impact cases involving government entities will not be addressed.

Practical implications

Managers and employees can protect themselves in the workplace from illegal discriminatory practices. Initially, employers and managers must be aware of the distinction between a disparate impact case and a disparate treatment case with the latter requiring evidence of intentional discrimination. Evidence, of course, can be direct or circumstantial or inferential. Whereas in a disparate impact case there is no intentional discrimination; and as such proof of discriminatory intent is not required. Rather, the employee has to present evidence that the employer’s neutral on-its-face employment policy or practice caused an adverse disproportionate impact on the employee as a member of a protected class.

Social implications

Human resources professionals and managers must become educated in diversity laws in order to provide an inclusive workplace for all employees and candidates. Employers have legitimate areas of concern in hiring and promoting employees; and the courts are cognizant of employer responsibilities; and thus the employers must be able to show how specific knowledge, skills, education, training, backgrounds, as well as height, weight, strength, and dexterity are legitimate qualifications that directly relate to successful job performance.

Originality/value

This is an original paper by the authors.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 36 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/EDI-04-2017-0091
ISSN: 2040-7149

Keywords

  • Diversity training
  • Credit checks
  • Criminal background checks
  • Disparate impact
  • Disparate treatment
  • US civil rights laws

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Article
Publication date: 1 April 2005

Wage differentials in the 1990s in Israel: endowments, discrimination, and selectivity

Shoshana Neuman and Ronald L. Oaxaca

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

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Abstract

Purpose

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

Design/methodology/approach

Selection and wage equations are estimated for each of the population groups (Eastern women, Western women, Eastern men, Western men) separately. The wage equations are corrected for selectivity using the Heckman procedure and subsequently wage differentials are decomposed into the three components mentioned above, using four alternative decompositions suggested in 2004 by Neuman and Oaxaca.

Findings

Gender wage differentials are significantly larger than ethnic differences. Discrimination is more common between the genders. The four alternative decompositions – that are based on different assumptions and objectives – yield different results.

Research limitations/implications

Decomposition of wage differences between groups needs to take into account information on the local relevant labor market and the wage setting process.

Practical implications

Information on the relative shares of the endowments, discrimination and selectivity components leads to a more effective way to close wage gaps.

Originality/value

Employment of new proposed decomposition methodologies that might lead to practical implications to combat gender and ethnic wage gaps in Israel.

Details

International Journal of Manpower, vol. 26 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/01437720510604938
ISSN: 0143-7720

Keywords

  • Pay differentials
  • Israel
  • Gender
  • Ethnic groups

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Article
Publication date: 6 June 2016

Entrepreneurial skills and wage employment

Aleksander Kucel and Montserrat Vilalta-Bufi

Promotion of entrepreneurial skills is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of…

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Abstract

Purpose

Promotion of entrepreneurial skills is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of entrepreneurial skills, nor the costs and benefits of such a policy are clear. The purpose of this paper is to check whether the benefits of entrepreneurial skills extent beyond self-employment. The authors denote entrepreneurial skills as those competencies that enhance the likelihood of self-employment. Then the authors analyze whether they are rewarded in wage employment.

Design/methodology/approach

The authors estimate a Heckman selection model with wages in a salaried job as the main dependent variable and working in wage employment vs self-employment as the selection equation. The authors use a sample of higher education graduates from Spain, from the year 2000 interviewed in 2005 within the REFLEX survey.

Findings

Results reveal that alertness to new opportunities, ability to mobilize others and knowledge of other fields are the competencies that enhance self-employment in Spain. Yet, these skills are not rewarded in a salaried job. Therefore, benefits of policies fostering entrepreneurial skills do not extend to wage employment in Spain.

Research limitations/implications

The exclusion restriction used in the analysis is father’s education. The authors assume that all the effect of parental education on wages goes through education attainment of the individual and her ability (proxied by her grade in secondary education). A better proxy for ability would be desirable.

Originality/value

The authors identify which competencies enhance self-employment in Spain. The authors find that these competencies are not rewarded in wage employment, so the benefits of policies promoting entrepreneurial education remain within self-employment activity only.

Details

International Journal of Manpower, vol. 37 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IJM-01-2015-0021
ISSN: 0143-7720

Keywords

  • Earnings
  • Entrepreneurialism
  • Self-employed workers
  • Employees

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Article
Publication date: 7 August 2017

Gender inequalities in labour market outcomes: Evidence for Greek regions before and throughout the crisis

Thomas Georgiadis and George Christopoulos

The purpose of this paper is to focus on the investigation of gender inequalities in the labour market at the regional level in Greece throughout the years preceding and…

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Abstract

Purpose

The purpose of this paper is to focus on the investigation of gender inequalities in the labour market at the regional level in Greece throughout the years preceding and following the economic crisis.

Design/methodology/approach

Utilising microdata from the European Union Statistics on Income and Living Conditions (EU-SILC) database from 2005 up to the most recent available, the authors construct the Total Earnings Gap Index, a composite index at the individual level which incorporates gender differentials in aspects related to employment, work intensity and earnings. This approach is further complemented by the results of the econometric analysis (a probit model for the probability of being in employment and a Heckman selection model for the determinants of hourly pay and hours worked), which portray the impact of gender on a set of labour-related characteristics.

Findings

The findings of the analysis indicate a widespread reduction of the gender gap; however, this appears to be mainly the result of a sharper fall in employment among men, hence pointing towards a “race to the bottom” process which presents few – if any – signs of an increase of women’s economic independence. The emerging picture points towards a trend of regional convergence in gender gaps, while also highlighting that similar gender equality outcomes are, in certain cases, shaped by radically different dynamics.

Originality/value

This paper uses an innovative composite index which provides a multi-dimensional depiction of gender inequality in the Greek labour market. This index has been introduced by Eurostat and has been applied at the country level, with this paper being the first – to the authors’ knowledge – to apply it at the regional level. Additionally, by examining years before and throughout the crisis, the present analysis adopts a dynamic perspective, offering valuable insight into the seismic shifts that Greece’s labour market structure has undergone during this period.

Details

International Journal of Manpower, vol. 38 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/IJM-11-2015-0198
ISSN: 0143-7720

Keywords

  • Gender
  • Regional development
  • Labour market
  • Europe
  • Pay differentials

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Book part
Publication date: 30 June 2016

Social Media use in HRM

Donald H. Kluemper, Arjun Mitra and Siting Wang

Over the past decade, the rapid evolution of social media has impacted the field of human resource management in numerous ways. In response, scholars and practitioners…

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Abstract

Over the past decade, the rapid evolution of social media has impacted the field of human resource management in numerous ways. In response, scholars and practitioners have sought to begin an investigation of the myriad of ways that social media impacts organizations. To date, research evidence on a range of HR-related topics are just beginning to emerge, but are scattered across a range of diverse literatures. The principal aim of this chapter is to review the current literature on the study of social media in HRM and to integrate these disparate emerging literatures. During our review, we discuss the existent research, describe the theoretical foundations of such work, and summarize key research findings and themes into a coherent social media framework relevant to HRM. Finally, we offer recommendations for future work that can enhance knowledge of social media’s impact in organizations.

Details

Research in Personnel and Human Resources Management
Type: Book
DOI: https://doi.org/10.1108/S0742-730120160000034011
ISBN: 978-1-78635-263-7

Keywords

  • Social media
  • social networking web sites
  • human resource management

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Book part
Publication date: 23 November 2020

The Age Pay Gap between Young and Older Employees in Italy: Perceived or Real Discrimination against the Young?

Carolina Castagnetti, Luisa Rosti and Marina Töpfer

This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional…

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Abstract

This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach for model selection, we use a machine-learning approach (post double robust Least Absolute Shrinkage Operator [LASSO]). This approach allows us to reduce Omitted Variable Bias (OVB), given data restrictions, and to obtain a robust estimate of the conditional age pay gap. We then decompose the conditional gap and analyze the impact of four further potential sources of heterogeneity (workers', sectors', and occupations' permanent heterogeneity as well as sample selection bias). The results suggest that age discrimination in pay is only perceived but not real in Italy for both men and women.

Details

Change at Home, in the Labor Market, and On the Job
Type: Book
DOI: https://doi.org/10.1108/S0147-912120200000048006
ISBN: 978-1-83909-933-5

Keywords

  • Age pay gap
  • perceived discrimination
  • machine learning
  • Italian labour market
  • omitted variable bias
  • Oaxaca-Blinder decomposition
  • J01
  • J31
  • J71

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Article
Publication date: 21 October 2013

Can competencies at selection predict performance and development needs?

Anna Sutton and Sara Watson

The purpose of this paper is to explore the utility of an organisation-wide competency framework, linking competency ratings at selection to later development needs and…

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Abstract

Purpose

The purpose of this paper is to explore the utility of an organisation-wide competency framework, linking competency ratings at selection to later development needs and job performance.

Design/methodology/approach

Candidates’ scores at a management selection event were compared to their performance appraisal scores on the same competencies six to 12 months later (n=58). Scores on numeracy and profit and loss tests were also collected at the selection event and related to subsequent performance (n=207) and development needs.

Findings

Competency ratings at performance appraisal were significantly lower than at selection interview. Correlations between ratings at interview and at performance appraisal were generally weak, though one (Understanding the Business) showed significant relationships with five of the seven performance appraisal competencies. In addition, competency ratings were related to employee turnover and managerial development needs.

Research limitations/implications

Although competencies were clearly defined, inter-rater variations may have occurred which obscure the relationships. However, it is of interest that a single competency at selection (Understanding the Business) seems to have the greatest effect on performance, employment outcome and development needs.

Practical implications

A competency framework that is embedded in both selection and performance ratings can provide the organisation with a clearer understanding of what determines managerial success, as well as informing better selection decisions. This study also raises the issue that performance ratings may be influenced more by a manager's ability to understand the business than by any other competencies.

Originality/value

The use of a longitudinal design provides unique evidence of the relationship between competency ratings at selection and later performance, employment outcome and development needs.

Details

Journal of Management Development, vol. 32 no. 9
Type: Research Article
DOI: https://doi.org/10.1108/JMD-02-2012-0032
ISSN: 0262-1711

Keywords

  • Development
  • Selection
  • Competencies
  • Manager

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