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Article
Publication date: 9 August 2013

Paolo Ghinetti and Claudio Lucifora

The authors aim to investigate public‐private pay determination using French, British and Italian micro data from the 2001 ECHP (European Community Household Panel) and estimate…

Abstract

Purpose

The authors aim to investigate public‐private pay determination using French, British and Italian micro data from the 2001 ECHP (European Community Household Panel) and estimate public/private wage differentials by country. By focussing on different countries, they exploit institutional differences to gain insights on the process of pay formation.

Design/methodology/approach

The authors use regression techniques to compute the pay premium both at the average and at different education/skill levels. They then decompose the observed differences into a part due to characteristics and another part due to different returns between sectors, also at different quantiles of the wage distributions within skills.

Findings

Even after controlling for observable characteristics, the authors find an overall positive wage differential for public sector workers in each of the three countries. As expected, the differential varies by skill. In general, the present findings do not fully support the view that the public (private) sector pays more (less) among the low skilled than the private (public) sector, and that the opposite is true for the highly skilled. The authors also document that the public pay premium varies as one moves up or down in the skill distribution.

Practical implications

On the one hand, the authors’ results confirm that the public sector acts in general as a “fair employer”, compressing pay dispersion with respect to the private sector. On the other hand, the interactions of public and private labour market institutional arrangements play a crucial role in shaping the structure of relative wages across sectors. For example, when the monopsony power in wage bargaining is relevant in both sectors as, for example, in Britain, the private sector pays in absolute value proportionally less, and also the public wage premium is smaller.

Originality/value

This is the first attempt to use comparable data for three countries to analyse public/private wage differences by skill levels and to link the evidence with differences in public/private wage setting regimes.

Article
Publication date: 3 April 2018

Fatma Guven-Lisaniler, Gulcay Tuna and Ikechukwu Darlington Nwaka

How does wage employment differ from self-employment in Nigeria? The purpose of this paper is to explore the determinants of participation and the resulting wage differentials…

Abstract

Purpose

How does wage employment differ from self-employment in Nigeria? The purpose of this paper is to explore the determinants of participation and the resulting wage differentials with respect to individual employees in self-employment, public-wage employment and private-wage employment in the Nigerian labour market.

Design/methodology/approach

Using the most recent cross-sectional data from the general household survey (GHS) panel for 2012/2013 wave (Nigeria National Bureau of Statistics (NBS), 2012), this paper applies the multinomial logit estimation for the sectoral choice and selectivity-corrected wage equation where appropriate.

Findings

Consistent with other studies in Africa, the findings confirm that the Nigerian labour market is heterogeneous. Factors affecting sectoral choices differ greatly across the analysed sectors. Education, age and geopolitical zones are observed to be the major determinants of sectoral participation. On the basis of BFG estimates, the authors find evidence of downward bias only in the public sector wages that is due to the (Bourguignon, Fournier & Gurgand) allocation of individuals with better unobservable characteristics out of the public employment into the self-employment. Consequently, the human capital variables become no longer significant in the public wage equation after correcting for selectivity bias. However, education and gender are found to be significant determinants of wages in the private and self-employment sectors. The magnitude of the gender coefficient is more negative in self-employment, which may imply a possible gender wage gap in that sector. While the North-East, North-West and South-South zones are highly statistically significantly different from zero in the public sector, only the South-South and South-West zones appear to be significant in self-employment. Hence, such zonal variables are a reflection of differences in economic incentives in Nigeria.

Research limitations/implications

Given the unregulated and precarious nature of employment in self-employment, adequate policies that address gender bias orientations are suggested.

Originality/value

This paper is one of the first that addresses sectoral choices and wage differentials among public, private and self-employment using the most recent GHS data for Nigeria.

Details

International Journal of Manpower, vol. 39 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 May 2000

Rita Mano‐Negrin

Public versus private sector placement and gender‐based effects are examined as the prime generator of wage variations among men and women Israeli managers in Israel. The…

1776

Abstract

Public versus private sector placement and gender‐based effects are examined as the prime generator of wage variations among men and women Israeli managers in Israel. The macro‐sociological analysis of economic sectors, organizational theory and human capital effects are integrated to predict public/private sector variations in wages, taking account of managerial level and gender effects. Using demographic, human capital characteristics and managerial level position from a representative sample of 778 Israeli public and private sector employees, it is shown that wage variations are generated by initial placement in the public/private sector; higher returns to work hours, education and managerial position in the private sector, and “manhood” which increases returns to wages in both sectors taking account of managerial level variations. These results suggest that public/private sector wage differences are only partially explained by occupational and managerial level variations: taking into account the above variables, gender remains the major determinant of wages for both private and public sector employees.

Details

Women in Management Review, vol. 15 no. 3
Type: Research Article
ISSN: 0964-9425

Keywords

Article
Publication date: 1 March 2015

Jared J. Llorens

Compensation systems serve a critical role in strategic human resources management, and over the past twenty-five years, there have been an increasing number of public sector…

Abstract

Compensation systems serve a critical role in strategic human resources management, and over the past twenty-five years, there have been an increasing number of public sector reform efforts aimed at better aligning compensation practices with institutional workforce needs. While many past reforms have been performance driven, the nationʼs most recent economic downturn has served as potent catalyst for a renewed focus on public sector compensation, particularly reforms to public sector retirement benefits. However, given the traditional importance of public sector retirement benefits within broader bureaucratic structures, these new reforms hold the potential to substantially alter human capital capacity in the public sector. Using wage and retirement benefit data from the U.S. Census Bureauʼs Current Population Survey and National Compensation Survey, this paper finds that state and local governments face significant threats to their long-term human capital capacity in light of potential benefit reforms that place a disproportionate emphasis upon competitive wage rates.

Details

International Journal of Organization Theory & Behavior, vol. 18 no. 1
Type: Research Article
ISSN: 1093-4537

Article
Publication date: 25 July 2019

Alison Preston, Elisa Birch and Andrew R. Timming

The purpose of this paper is to document the wage effects associated with sexual orientation and to examine whether the wage gap has improved following recent institutional…

Abstract

Purpose

The purpose of this paper is to document the wage effects associated with sexual orientation and to examine whether the wage gap has improved following recent institutional changes which favour sexual minorities.

Design/methodology/approach

Ordinary least squares and quantile regressions are estimated using Australian data for 2010–2012 and 2015–2017, with the analysis disaggregated by sector of employment. Blinder–Oaxaca decompositions are used to quantify unexplained wage gaps.

Findings

Relative to heterosexual men, in 2015–2017 gay men in the public and private sectors had wages which were equivalent to heterosexual men at all points in the wage distribution. In the private sector: highly skilled lesbians experienced a wage penalty of 13 per cent; low-skilled bisexual women faced a penalty of 11 per cent, as did bisexual men at the median (8 per cent penalty). In the public sector low-skilled lesbians and low-skilled bisexual women significant experienced wage premiums. Between 2010–2012 and 2015–2017 the pay position of highly skilled gay men has significantly improved with the convergence driven by favourable wage (rather than composition) effects.

Practical implications

The results provide important benchmarks against which the treatment of sexual minorities may be monitored.

Originality/value

The analysis of the sexual minority wage gaps by sector and position on the wage distribution and insight into the effect of institutions on the wages of sexual minorities.

Details

International Journal of Manpower, vol. 41 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 22 May 2023

Emanuela Ghignoni and Francesco Pastore

After the decision of the Egyptian government to adhere to the Equal Pay International Coalition in 2020, a great deal needs to be done to guarantee ‘equal pay for equal work’…

Abstract

Purpose

After the decision of the Egyptian government to adhere to the Equal Pay International Coalition in 2020, a great deal needs to be done to guarantee ‘equal pay for equal work’. The authors provide a comprehensive, in-depth, up-to-date analysis of the gender wage gap in Egypt, as well as its evolution over the last 20 years, disaggregated by public and private sector. The authors also provide an analysis of the cultural determinants of Egypt's low female participation.

Design/methodology/approach

The authors apply the Oaxaca-Blinder decomposition (with sample selection) to assess the gender wage gap at the mean of the wage distribution in the public and private sector. The authors also implement a re-centred influence function decomposition to assess the extent of ‘discrimination’ along the wage distribution in both sectors. An inverse-probability-weighted regression adjustment procedure is used to assess the joint impact of gender and firm-ownership. A female participation equation taking into account gender equality attitude is provided.

Findings

The authors find a sizable and increasing gender wage gap in the private sector almost entirely due to ‘discrimination’. The authors also find evidence of a sticky floor in the private sector and a glass ceiling in the public one. Cultural barriers play a major role in determining female participation.

Originality/value

This is the first paper on the evolution of gender equality in Egypt that takes into account the effect of the 'Arab Spring’ of 2011. To the best of the authors’ knowledge, this is also the first time that an IPWRA procedure is applied to study the interaction effect of gender and firm-ownership.

Details

International Journal of Manpower, vol. 44 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 17 September 2019

Xisco Oliver and Maria Sard

The purpose of this paper is to analyse the wage gap between temporary and permanent workers across the whole wage distribution, not just at the mean, and the evolution before and…

Abstract

Purpose

The purpose of this paper is to analyse the wage gap between temporary and permanent workers across the whole wage distribution, not just at the mean, and the evolution before and after the Great Recession on this gap in Spain.

Design/methodology/approach

An extended Mincer-type wage equation is estimated using ordinary least square regression and unconditional quantile regression. Then, the decomposition of the wage gap between workers with fixed-term and permanent contracts for each quantile is made using the Fortin, Lemieux and Firpo decomposition.

Findings

The results show that two workers, with identical characteristics, earn different salaries if they have a different type of contract. However, the wage gap is not constant across the wage distribution. The penalty for temporary workers is wider for higher wages. Moreover, the main part of the gap is due to observed characteristics, but other factors (unobserved characteristics and discrimination) become more relevant in the upper part of the wage distribution.

Originality/value

The study expands upon available studies for Spain in two points. First, it is the first paper to the knowledge that analyse both the wage gap between temporary and permanent workers across the wage distribution and its decomposition. Second, the paper explores what happened before and after the Great Recession. In the years that the paper analyses there is also a labour market reform.

Details

International Journal of Manpower, vol. 40 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 8 June 2020

Lisa Dorigatti, Anna Mori and Stefano Neri

The paper examines the different trajectories of externalisation and the development of different kinds of welfare mix in three different sub-sectors of socio-educational…

Abstract

Purpose

The paper examines the different trajectories of externalisation and the development of different kinds of welfare mix in three different sub-sectors of socio-educational services: long-term care for the elderly, early childhood services and kindergartens. By integrating the industrial relations and comparative public administration literatures, it analyses the different rationales underpinning contracting-out decisions of Italian local governments.

Design/methodology/approach

The paper adopts a multi-method, multi-level approach: quantitative data on the provision of socio-educational services and the nature of the providers are combined with the analysis of 12 case studies of municipalities through 80 semi-structured interviews and documentary analysis.

Findings

The paper argues that differentials in labour regulation across the public/private divide and the consequent possibility to access labour markets characterised by cheaper labour and higher organisational flexibility are a key explanation in local governments' decisions to outsource. Despite labour market factors playing a prominent role, their relevance is significantly tempered by political and social factors and particularly by the strong opposition of citizens, personnel and trade unions to pure market solutions in the provision of such services. However, the centrality of these factors depends on the nature of the services: political sensibility against privatisation proved to be stronger in kindergartens, while services for the elderly were more frequently and less contentiously privatised.

Originality/value

The main contribution is the integration of the two research traditions to analyse patterns of outsourcing in the socio-educational services in Italy, showing that neither of them is able, alone, to explain the different private/public mix characterising different social and educational services.

Details

International Journal of Sociology and Social Policy, vol. 40 no. 11/12
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 6 April 2021

Mahalia Jackman and Winston Moore

This paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.

2540

Abstract

Purpose

This paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.

Design/methodology/approach

The empirical analysis is carried out using labour force survey data and interval regressions.

Findings

Estimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.

Originality/value

To date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.

Details

Journal of Economics and Development, vol. 23 no. 3
Type: Research Article
ISSN: 1859-0020

Keywords

Article
Publication date: 10 August 2012

Hugo Ñopo, Nancy Daza and Johanna Ramos

The purpose of this paper is to analyze gender disparities in labor earnings for a comprehensive set of 64 countries.

2651

Abstract

Purpose

The purpose of this paper is to analyze gender disparities in labor earnings for a comprehensive set of 64 countries.

Design/methodology/approach

Using the methodological approach proposed by Ñopo, socio‐demographic characteristics are used to match males and females such that gender earnings disparities are computed only among individuals with the same observable characteristics.

Findings

Disparities are partially attributed to gender differences in observable socio‐demographic and job characteristics. After matching males and females with the same characteristics, the authors found that the earnings gap falls within a range between 8 per cent and 48 per cent of average females’ earnings, being more pronounced in South Asia and Sub‐Saharan Africa. The unexplained earnings gaps are more pronounced among part‐time workers and those with low education levels.

Originality/value

This paper presents a comprehensive view of gender earnings gaps in the world, simultaneously exploring many of the issues highlighted in the related literature. It adds value by exploring gender gaps in a comparative perspective, applying the same methods for several different countries.

Details

International Journal of Manpower, vol. 33 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

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