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Article
Publication date: 1 June 2015

Lixin Cai and Amy Y.C. Liu

– The purpose of this paper is to examine the wage differentials along the entire distribution between immigrants and the Australian-born.

1173

Abstract

Purpose

The purpose of this paper is to examine the wage differentials along the entire distribution between immigrants and the Australian-born.

Design/methodology/approach

Using the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the authors apply a semi-parametric method (DiNardo et al., 1996) to decompose the distributional wage gap between immigrants and native-born Australians into composition effect and wage structure effect. The authors further apply the unconditional quantile regression (UQR) method (Firpo et al., 2007) to decompose the overall wage structure effect into contributions from individual wage covariates.

Findings

Relative to the native-born, both effects favour immigrants from English-speaking countries. For male immigrants from non-English-speaking countries (NESC) the favourable composition effect is offset by disadvantage in the wage structure effect, leaving little overall wage difference. Female immigrants from NESC are disadvantaged at the lower part of the wage distribution.

Practical implications

The increasingly skill-based immigration policy in Australia has increased skill levels of immigrants relative to the Australian-born. However, the playing field may yet to be equal for the recent NESC immigrants due to unfavourable rewards to their productivity factors. Also, immigrants are not homogeneous. Countries of origin and gender matter in affecting wage outcomes.

Originality/value

The unique wage-setting system and the increasingly skill-based immigration policy have made Australia an interesting case. The authors examine the entire wage distribution between migrants and native-born rather than focus on the mean. The authors differentiate immigrants by their country of origin and gender; and apply the UQR decomposition to identify the contributions from individual wage covariates.

Details

International Journal of Manpower, vol. 36 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 28 February 2020

Yoshimichi Murakami and Tomokazu Nomura

This study aims to analyse the contribution of the expansion and diversification of higher education to Chile's increase in wage inequality from 1992 to 2000 and its subsequent…

Abstract

Purpose

This study aims to analyse the contribution of the expansion and diversification of higher education to Chile's increase in wage inequality from 1992 to 2000 and its subsequent decrease from 2000 to 2013.

Design/methodology/approach

The wage equation for each year is estimated using data from the national household survey, Encuesta de Caracterización Socioeconómica Nacional (CASEN). Using the method proposed by Firpo et al. (2009), the evolution of wage changes is decomposed into composition and wage structure effects of each explanatory variable at different points of the wage distribution.

Findings

The results show that the positive composition effect of higher education, derived from the increasing share of both workers with university degrees and those with vocational degrees, is substantially larger at the upper quantiles and exceeds the negative wage structure effect, thereby contributing to increasing wage inequality from 1992 to 2000. By contrast, the negative wage structure effect of higher education, primarily derived from the decreasing return to university degrees, is substantially larger at the upper quantiles and exceeds the positive composition effect, thereby contributing to decreasing wage inequality from 2000 to 2013.

Originality/value

This study contributes to the literature by showing that the expansion of higher education increased inequality in the 1990s and decreased it in the 2000s while the increasing supply of workers with vocational degrees decreased wage premiums for university degrees in the latter period.

Details

Journal of Economic Studies, vol. 47 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 4 December 2020

Rabeh Morrar and Fernando Rios-Avila

This paper examines the level and structure of the wage inequality between nonrefugee and refugee workers in Palestine and the extent to which such wage gap reflects any…

Abstract

Purpose

This paper examines the level and structure of the wage inequality between nonrefugee and refugee workers in Palestine and the extent to which such wage gap reflects any marginalization and discrimination against refugees. It also investigates how the disparities in distribution to individual worker characteristics contribute to the wage inequality in Palestine.

Design/methodology/approach

The authors use both Oaxaca and Blinder (OB) (Oaxaca, 1973 and Blinder, 1973) and Fortin et al. (2011) unconditional quantile decomposition approaches to measure the size of the wage gap along with the wage distribution and to decompose the wage differences into productivity (i.e. explained or the composition effects) and wage structure effects (i.e. unexplained or discrimination effects).

Findings

Results indicate that most of the wage gap between refugees and nonrefugees is attributed to the wage structure effect (possibly explained by discrimination) against refugees in the Palestinian labor market. The wage gap between refugees and nonrefugees is not uniform throughout the wage distribution and supports the “sticky floor effect.”

Practical implications

This work introduces important policy implications for the policymakers in the Palestinian labor market. It reveals the economic and social factors, individual worker characteristics as well as labor market characteristics contribute to the wage inequality in Palestine.

Social implications

This research reveals a crucial social challenge in the Palestinian society, represented by the wage discrimination against refugees in Palestine. This is despite the denial of such discrimination from official bodies, local institutions and many other policymakers. It also captures gender inequality between men and women.

Originality/value

This is the first empirical work in Palestine that contends with a very sensitive issue in the Palestinian society, that is, the discrimination against refugees in the Palestinian labor market. Most of the existing studies have approached this issue from a humanitarian view in order to show the deterioration of social and economic situations in the refugee camps.

Details

International Journal of Manpower, vol. 42 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 30 December 2020

Francieli Tonet Maciel

This paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.

Abstract

Purpose

This paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.

Design/methodology/approach

The author uses microdata from the National Household Sample Survey and adopts two occupational integration typology to capture both horizontal and vertical segregation. The decomposition method proposed by Firpo et al. (2009) is employed to investigate the determinants of changes in differentials along the wage distribution.

Findings

Results suggest a glass ceiling effect for all groups compared to white men. Gender and racial discrimination persist, especially at the top of the distribution. For both black women and men, observable characteristics account for most of the wage differentials, while for white women, the opposite occurs because of their education level. Vertical segregation behavior indicates that white men continue over-represented in higher-paid occupations. Although women improved their relative position in the occupational hierarchy, horizontal segregation behavior shows that their concentration in female-dominated occupations has not reduced, except in extreme quantiles. Education played a crucial role in reducing wage gaps, and regional differences stood out as a significant factor of the racial disadvantage.

Originality/value

The paper shows significant differences between the groups regarding verticalization and horizontalization of occupational structure along the wage distribution and over time, contributing to filling some gaps in the literature concerning the wage stratification based on gender and race in Brazil. Occupational segregation as a composition factor of the groups determines their positions in a vertically hierarchical and socially stratified occupational structure. The behavior of horizontal and vertical segregations evidences the continue under-valorization of female occupations and the barriers faced by racial and gendered groups to overcome the glass ceiling effect. Recognize the intersectionality of gender and race in addressing inequalities is fundamental to promote policies that overcome them.

Details

International Journal of Manpower, vol. 42 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 February 2002

Lisa Giddings

Relies on cross‐sectional survey data from 1986 and 1993 to explain an increase in the ethnic Turk‐ethnic Bulgarian earnings differential in Bulgaria in the country’s early…

Abstract

Relies on cross‐sectional survey data from 1986 and 1993 to explain an increase in the ethnic Turk‐ethnic Bulgarian earnings differential in Bulgaria in the country’s early transition. Empirical evidence indicates that the ethnic Turks closed both the gap in the number of years of education and experience acquired during this time. Further, the Turks began to enter the growing commerce and transportation industries in the early transition. Shifts in the wage structure, however, favored the ethnic Bulgarians, and these changes outweighed ethnic Turk gains in the measured characteristics. In addition to these shifts, an increase in the overall level of inequality in the labor market punished those at the low‐end of the wage distribution, exacerbating the existing ethnic earnings differential. These results imply however, that the ethnic Turks are responding to market signals and if it continues, this trend will diminish the ethnic earnings gap.

Details

International Journal of Manpower, vol. 23 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

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: 27 February 2023

Wallace Patrick Santos de Farias Souza, Daniel Tomaz de Sousa and Mércia Santos da Cruz

This paper aims to measure income differences between the obese and the non-obese for Brazil and understand which components explain these differences.

Abstract

Purpose

This paper aims to measure income differences between the obese and the non-obese for Brazil and understand which components explain these differences.

Design/methodology/approach

A decomposition method based on recentered influence functions, proposed by Firpo et al. (2007) is used, and the procedure is applied to individuals' income distribution quantiles.

Findings

The results confirm the existence of a wage gap between obese and non-obese men and women. In the case of men, the difference was favorable to the obese in all quantiles and in the case of women, favorable to the non-obese. The biggest differences were observed at the top of the distribution. This difference is mostly explained by observable characteristics that cause the wage gap between groups. The wage structure effect, which may have elements associated with discrimination in its composition, was not relevant in most quantiles.

Research limitations/implications

Unobserved factors can impact the results, but our methodology tries to minimize such impact.

Practical implications

The authors can only observe a point in time and with that they do not know how long the individual has been obese.

Originality/value

The methodology adopted in the work is recent; moreover, studies on the effects of obesity on the labor market are still recent in Brazilian research.

Details

International Journal of Social Economics, vol. 50 no. 7
Type: Research Article
ISSN: 0306-8293

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: 27 May 2014

Lin Xiu and Morley Gunderson

– The purpose of the paper is to analyse how the male-female pay gap in China varies across the pay distribution and to provide evidence on the factors that influence that gap.

3556

Abstract

Purpose

The purpose of the paper is to analyse how the male-female pay gap in China varies across the pay distribution and to provide evidence on the factors that influence that gap.

Design/methodology/approach

The authors use the Recentered Influence Function modification of quantile regressions to estimate how the male-female pay gap varies across the pay distribution. The authors also decompose the pay gaps at different quantiles of the pay distribution into differences in endowments of wage determining characteristics and differences in the returns for the same characteristics. The analysis is based on data from the Life Histories and Social Change in Contemporary China survey.

Findings

The authors find evidence of a sticky floor (large pay gaps at the bottom of the pay distribution) and some limited and weaker evidence of a glass ceiling (large pay gaps at the top of the distribution). This pattern prevails based on the overall pay gap as well as on the adjusted or net gap that reflects differences in the pay that males and females receive when they have the same pay determining characteristics. The pattern largely reflects the coefficients or unexplained differences across the pay distribution. Factors influencing the pay gap and how they vary across the pay distribution are discussed. The variation highlights considerable heterogeneity in the Chinese labour market with respect to how pay is determined and different characteristics are rewarded, implying that the conventional Blinder-Oaxaca decompositions that focus only on the mean of the distribution can mask important differences across the full pay distribution.

Social implications

At the bottom of the pay distribution most of the lower pay of females reflects their lower returns to job tenure, experience and a greater negative effect of family responsibilities on females’ wages, and to a lesser extent their lower level of education, less likelihood of being CPP members and their concentration in lower paying occupations. At the top of the pay distribution most of their lower pay reflects their lower returns on education, job tenure and work experience, and to a lesser extent their lower levels of experience and lower likelihood of being in managerial and leadership positions.

Originality/value

The paper systematically examines the male-female pay gap and its determinants throughout the pay distribution in China, highlighting that the conventional Blinder-Oaxaca decompositions that focus only on the mean of the distribution can mask important differences across the full pay distribution and not capture the considerable heterogeneity in that labour market.

Details

International Journal of Manpower, vol. 35 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 29 April 2020

Cicero Francisco De Lima, Edward Martins Costa, Francisca Zilania Mariano, Wellington Ribeiro Justo and Pablo Urano de Carvalho Castelar

The objective of this work was to analyze the income differential of the rural–urban worker in relation to the rural–rural worker and in relation to the urban–urban worker in the…

Abstract

Purpose

The objective of this work was to analyze the income differential of the rural–urban worker in relation to the rural–rural worker and in relation to the urban–urban worker in the Brazilian labor market. Two databases were used, the 2005 and 2015 PNADs (Pesquisa Nacional Por Amostra de Domicílios).

Design/methodology/approach

The methodology is the decomposition approach proposed by Firpo et al. (2007, 2009). This method adopts estimates of unconditional quantile regressions, based on the concepts of influence function and recentered influence function (RIF).

Findings

Among the main results, income differentials were shown to benefit the urban–urban worker when compared to the rural–urban worker, and income differences to the benefit of the rural–urban workers, when these were compared to the rural–rural workers. The educational variable was relevant in explaining the income disparity and expressing increasing effects in the higher quantiles.

Originality/value

The methodology used in this work is considered recent in the literature as it is based on the RIF regression (Firpo et al., 2007, 2009). The main advantage of this method is the possibility of assigning a “composition effect” and a “wage structure effect” for each variable that determines the level of income at different points of the income distribution.

Details

Journal of Economic Studies, vol. 47 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

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