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Expert briefing
Publication date: 24 April 2024

Elevating stagnant wages is Tokyo’s top priority and anti-deflation tool, necessary in creating a virtuous cycle of rising prices and incomes that boosts economic growth.

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DOI: 10.1108/OXAN-DB286634

ISSN: 2633-304X

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Geographic
Topical
Book part
Publication date: 1 October 2008

Jorgen Hansen and Roger Wahlberg

This paper examines the relationship between the gender wage gap and occupational gender segregation in Sweden. The results show that the gender wage gap varies substantially…

Abstract

This paper examines the relationship between the gender wage gap and occupational gender segregation in Sweden. The results show that the gender wage gap varies substantially across occupations. It is small in male-dominated occupations and relatively large in female-dominated occupations. Further, as much as 30% of the overall gender wage gap in Sweden can be attributed to occupational segregation by gender. Finally, the return to work experience for women is substantially higher in male-dominated occupations than in female-dominated occupations, suggesting that the cost for work interruptions are lower in female-dominated occupations than in male-dominated occupations. This finding is consistent with the hypothesis that women choose occupations in which the penalty for work interruptions is low. Thus, occupational segregation may arise because of gender differences in preferences for occupational characteristics and not necessarily because of discriminatory practices by employers.

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Work, Earnings and Other Aspects of the Employment Relation
Type: Book
ISBN: 978-1-84950-552-9

Abstract

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Panel Data and Structural Labour Market Models
Type: Book
ISBN: 978-0-44450-319-0

Article
Publication date: 10 April 2024

Weiting Wang, Yi Liao and Jiacan Li

The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.

Abstract

Purpose

The purpose of this study to improve the efficiency of customer acquisition and retention through the design of salary information disclosure mechanism.

Design/methodology/approach

This study develops a stylized game-theoretic model of delegating customer acquisition and retention, focusing on how firms choose delegation and wage information disclosure strategy.

Findings

The results confirm the necessity for enterprises to disclose salary information. When sales agents are risk neutral, firms should choose multi-agent (MA) delegation and disclose their wages. However, when agents are risk averse, firms may disclose the wages of acquisition agents or both agents in MA delegation, depending on the uncertainty of the retention market.

Originality/value

This paper contributes to the literature on delegation of customer acquisition and retention and demonstrates that salary disclosure can be used as a supplement to the incentive mechanism.

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Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

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Article
Publication date: 2 April 2024

Sofiia Dolgikh and Bogdan Potanin

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is…

Abstract

Purpose

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is efficient then higher levels of education usually associated with greater returns on labor market. To evaluate the efficiency of Russian education system we aim to estimate the effect of vocational education and different levels of higher education on wages.

Design/methodology/approach

We use data on 8,764 individuals in the years 2019–2021. Our statistical approach addresses two critical issues: nonrandom selection into employment and the endogeneity of education choice. To tackle these problems, we employed Heckman’s method and its extension that is a structural model which addresses the issue of self-selection into different levels of education.

Findings

The results of the analysis suggest that there is a significant heterogeneity in the returns to different levels of education. First, higher education, in general, offers substantial wage premiums when compared to vocational education. Specifically, individuals with specialist’s and bachelor’s degrees enjoy higher wage premiums of approximately 23.59–24.04% and 16.43–16.49%, respectively, compared to those with vocational education. Furthermore, we observe a significant dis-parity in returns among the various levels of higher education. Master’s degree provides a substantial wage premium in comparison to both bachelor’s (19.79–20.96%) and specialist’s (12.64–13.41%) degrees. Moreover, specialist degree offers a 7.16–7.55% higher wage premium than bachelor’s degree.

Practical implications

We identify a hierarchical pattern in the returns associated with different levels of higher education in Russia, specifically “bachelor-specialist-master.” These findings indicate that each level of education in Russia serves as a distinct signal in the labor market, facilitating employers' ability to differentiate between workers. From a policy perspective, our results suggest the potential benefits of offering opportunities to transition from specialist’s to master’s degrees on a tuition-free basis. Such a policy may enhance access to advanced education and potentially lead to higher returns for individuals in the labor market.

Originality/value

There are many studies on returns to higher education in Russia. However, just few of them estimate the returns to different levels of higher education. Also, these studies usually do not address the issue of the endogeneity arising because of self-selection into different levels of education. Our structural econometric model allows addressing for this issue and provides consistent estimates of returns to different levels of education under the assumption that individuals with higher propensity to education obtain higher levels of education.

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Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 29 March 2024

Cole J. Crider, Alireza Aghaey, Jason Lortie, Whitney O. Peake and Shaun Digan

The purpose of this study is to empirically examine how individuals’ hybrid entrepreneurial venturing activities (HEVA) influence key characteristics associated with one’s wage

Abstract

Purpose

The purpose of this study is to empirically examine how individuals’ hybrid entrepreneurial venturing activities (HEVA) influence key characteristics associated with one’s wage work, namely creativity and job satisfaction.

Design/methodology/approach

Through a cross-sectional self-administered survey design, data were gathered from 465 US-based useable responses via Amazon Mechanical Turk and analyzed using structural equation modeling (SEM).

Findings

Findings show individuals reporting higher levels of HEVA – such as creating, founding, starting or running – tend to also exhibit higher levels of creativity and job satisfaction in their workplaces. Findings further reveal that income negatively moderates the relationship between creativity and wage work job satisfaction.

Practical implications

By providing a better understanding of how engaging in HEVA can impact creativity and job satisfaction, this study has important implications for (1) managers seeking to influence key employee outcomes and (2) employees considering such entrepreneurial activities.

Originality/value

This paper adds to the growing scholarly and practitioner interest in hybrid entrepreneurship and its outcomes. Specifically, the paper adds new insights regarding how engaging in HEVA can influence individual skills (i.e. creativity) or organizational goals (i.e. employee job satisfaction). In doing so, the paper also uses insights from the intrinsic/extrinsic motivation literature to suggest how extrinsic motivators (such as income) can interact with intrinsically motivated behaviors (such as creativity) in influencing employee outcomes in wage work. Finally, the paper contributes to the growing interest in applying the empowerment perspective within entrepreneurship research by exploring where and how empowerment may occur.

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International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 5
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 13 April 2012

Luisa Rosti and Francesco Chelli

The purpose of this paper is to verify whether higher education increases the likelihood of young Italian workers moving from non‐standard to standard wage contracts.

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Abstract

Purpose

The purpose of this paper is to verify whether higher education increases the likelihood of young Italian workers moving from non‐standard to standard wage contracts.

Design/methodology/approach

The authors exploit a data set on labour market flows, produced by the Italian National Statistical Office, by interviewing about 85,000 graduate and non‐graduate individuals aged 15‐29 in transition between five labour market states: standard wage employment; non‐standard wage employment; self‐employment; unemployment; inactivity. From these data, an average six‐year transition matrix was constructed whose coefficients can be interpreted as probabilities of moving from one state to another over time.

Findings

As the authors find evidence for the so‐called stepping stone hypothesis (that is, a higher probability of moving to a permanent job for individuals starting from a temporary job), the authors expect graduates to be more likely to pass from non‐standard to standard wage contracts than non‐graduates, because the signalling effect of education is enhanced by the stepping stone effect of non‐standard wage contracts. Nevertheless, the authors find that non‐standard wage contracts of graduates are more likely to be terminated as bad job/worker matches.

Originality/value

This paper adds to the empirical literature on the probability of young workers moving from non‐standard wage contracts to a permanent job. By separating graduates from non‐graduates, it was found that education reduces the likelihood of passing from non‐standard to standard wage contracts. The authors interpret this result as evidence of the changing labour market that makes it more difficult to infer the productivity of graduates as opposed to non‐graduates.

Article
Publication date: 1 September 1998

Javier Suarez

This study explores the impact of import competition on wages and employment at the industry level. We estimate reduced‐form, industry‐level wage and employment equations. We find…

Abstract

This study explores the impact of import competition on wages and employment at the industry level. We estimate reduced‐form, industry‐level wage and employment equations. We find that, in a majority of industries, a toughening of import competition tends to reduce employment and to have an adverse effect on workers’ wages, but the magnitude of this impact is relatively modest. Our results suggest that import price variations have had very little influence on the domestic labour market.

Details

International Journal of Manpower, vol. 19 no. 6
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 January 1990

John Creedy

In the last decade there has been considerable interest in theanalysis of Trade Union behaviour, but surprisingly little discussion ofthe effect of tax changes on wage demands…

Abstract

In the last decade there has been considerable interest in the analysis of Trade Union behaviour, but surprisingly little discussion of the effect of tax changes on wage demands. Previous analyses have been limited by the use of simple tax structures. The discussion is extended by considering a multi‐rate tax system that can easily be applied to most countries. The effect on unions′ wage demands of eliminating the top marginal tax rate, while raising VAT, is examined in detail. It is shown that this policy can be expected to lead to an increase in the wage demands of all unions, producing a once‐and‐for‐all increase in nominal wages and unemployment.

Details

Journal of Economic Studies, vol. 17 no. 1
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 4 May 2012

Chor Foon Tang

The aim of this study is to empirically investigate the effect of real wages on labour productivity in Malaysia's manufacturing sector using annual data from 1980 to 2009.

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Abstract

Purpose

The aim of this study is to empirically investigate the effect of real wages on labour productivity in Malaysia's manufacturing sector using annual data from 1980 to 2009.

Design/methodology/approach

This study uses the Johansen cointegration test to examine the presence of long‐run equilibrium relationship between labour productivity and real wages in Malaysia. In addition, the Granger causality test within the vector error‐correction model (VECM) is used to ascertain the direction of causality between the variables of interest.

Findings

The Johansen test suggests that real wages and labour productivity are cointegrated. Moreover, labour productivity and real wages have a quadratic relationship (i.e. inverted U‐shaped curve) instead of linear relationship. Hence, the effect of real wages on labour productivity is non‐monotonic. Furthermore, the Granger causality test indicates that real wages and labour productivity are bilateral causality in nature.

Research limitations/implications

This study is limited to the labour productivity in the manufacturing sector only.

Originality/value

This study demonstrates that the effect of real wages on labour productivity is non‐monotonic; hence increase in real wages alone does not always enhance labour productivity. Thus, other incentives should be offered to stimulate long‐term labour productivity growth in Malaysia.

Details

International Journal of Social Economics, vol. 39 no. 6
Type: Research Article
ISSN: 0306-8293

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