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Article
Publication date: 28 July 2023

Aigerim Yergabulova, Dinara Alpysbayeva and Venkat Subramanian

The aim of the paper is to explore within-firm vertical pay inequality and its relation to firm size and firm performance.

Abstract

Purpose

The aim of the paper is to explore within-firm vertical pay inequality and its relation to firm size and firm performance.

Design/methodology/approach

Using firm-level microdata for Kazakhstan, the authors measure within-firm pay inequality as the wage differential between the top- and the bottom-level job occupations. The authors carry out their analysis based on panel regression models.

Findings

The authors find that within-firm pay inequality increases as firms grow. Further, they identify that this trend is mainly driven by top-occupation workers receiving more significant wage increases compared to lower-level workers as firms expand. Once the authors address concerns about endogeneity, they find that pay inequality is negatively associated with firm performance.

Practical implications

Developing strategies and policies that prioritize fairness and transparency in compensation practices is crucial during the expansion process of firms. By actively discouraging rent-seeking behavior, firms can create a work environment that promotes productivity and sustainability, ultimately leading to improved firm performance. The research findings highlight the importance of implementing context-specific interventions, recognizing that different environments may require tailored approaches to address pay inequality effectively.

Originality/value

This study contributes to the study of within-firm pay inequality, firm size and performance in an emerging economy, an area that has been largely overlooked in previous empirical research. The contrasting findings show the importance of the structural and industrial characteristics of emerging markets that contribute to broader and deeper impact of pay inequality compared to developed economies.

Details

International Journal of Manpower, vol. 45 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 16 May 2023

Isabel Acero and Nuria Alcalde

This study investigates whether the proportion of proprietary directors (blockholders or their representatives) on the board's remuneration committee influences vertical pay

Abstract

Purpose

This study investigates whether the proportion of proprietary directors (blockholders or their representatives) on the board's remuneration committee influences vertical pay inequality in Spanish listed companies and whether this relationship can be conditioned by the concentration of ownership.

Design/methodology/approach

The sample contains information on the individual compensation of 1048 directors of 57 Spanish listed firms during the period 2013–2018 making up an unbalanced panel with 3565 observations. Panel data regressions are used to study how the presence of proprietary directors on the remuneration committee influences the remuneration of directors, focusing not on their absolute remuneration levels, but rather on their relationship to the average remuneration of the organization's employees (as a measure of vertical pay inequality within the company). The authors also investigate whether this relationship is conditioned by firm ownership concentration.

Findings

The results indicate that the presence of proprietary directors on the remuneration committee acts as a mechanism to reduce vertical pay inequality, even in the context of high ownership concentration.

Originality/value

Unlike the majority of previous research dedicated to the independence of the remuneration committee, this study focuses on the role played by proprietary directors. The results help elucidate the importance of proprietary directors to properly monitor and restrain directors' compensation in contexts of high ownership concentration.

Article
Publication date: 8 May 2020

Xiaoyu Yu, Xiaotong Meng, Gang Cao and Yingya Jia

Conflict between work and family is a significant issue for entrepreneurs. The purpose of this study is to explore the effect of entrepreneurial failure on both family–work…

Abstract

Purpose

Conflict between work and family is a significant issue for entrepreneurs. The purpose of this study is to explore the effect of entrepreneurial failure on both family–work conflict (FWC) and work–family conflict (WFC) and the moderating role of perceived control of time and organizational slack based on conservation of resources (COR) theory.

Design/methodology/approach

This study used a questionnaire to explore the relationship between entrepreneurial failure, FWC/WFC, perceived control of time and organizational slack. Data were collected from the Chinese context in 2018 and as a result received 318 valid questionnaires, obtaining a response rate of 63.6 per cent.

Findings

The study finds that entrepreneurial failure has a significant relationship with FWC but a nonsignificant relationship with WFC and that perceived control of time and organizational slack moderate the relationship between entrepreneurial failure and FWC/WFC.

Originality/value

This study aligns the field of family–work (work–family) conflict and entrepreneurial failure. It addresses a research gap in the conflict literature by introducing one form of resource loss: entrepreneurial failure as a source of conflict between work and family based on COR theory and the work–home resources model. The study also enriches the literature on the social cost of entrepreneurial failure by exploring the crossover effect of entrepreneurial failure on conflicts in the family domain. Furthermore, the study advances the understanding of managing conflict between work and family after entrepreneurial failure.

Details

International Journal of Conflict Management, vol. 31 no. 3
Type: Research Article
ISSN: 1044-4068

Keywords

Book part
Publication date: 1 July 2014

Samantha A. Conroy, Nina Gupta, Jason D. Shaw and Tae-Youn Park

In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the…

Abstract

In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78350-824-2

Keywords

Book part
Publication date: 18 November 2015

Moris Triventi, Jan Skopek, Yuliya Kosyakova, Sandra Buchholz and Hans-Peter Blossfeld

This chapter provides an overview of the results from a cross-nationally comparative project analysing gender differences and inequalities at labour market entry. Women’s relative…

Abstract

This chapter provides an overview of the results from a cross-nationally comparative project analysing gender differences and inequalities at labour market entry. Women’s relative gains in educational attainment and the expansion of the service sector suggest that gender inequalities in occupational returns are diminishing or even reversing. In assessing gender differences at labour market entry, we look at a phase of the life course when women’s family roles are still of minor importance. Conceptually, we distinguish between horizontal segregation and inequalities in vertical outcomes. The project was based on 13 in-depth case studies contributed by a network of scholars analysing countries with different institutional, socio-economic and cultural settings. The findings demonstrate that occupational gender segregation is still relatively marked among recent cohorts, though it is slightly decreasing over time in several countries. In terms of vertical inequalities, the case studies consistently revealed that while women enter more prestigious jobs than men in most countries, there is a female disadvantage in economic returns among recent labour market entrants. In addition, we found mixed evidence on the variations of gender equality at labour market entry across countries with different institutional characteristics.

Details

Gender Segregation in Vocational Education
Type: Book
ISBN: 978-1-78560-347-1

Article
Publication date: 7 October 2020

Chukwuedo Susan Oburota and Olanrewaju Olaniyan

The purpose of this paper is to decompose the inequities induced by the Nigerian health care financing sources and their effect on the income distribution. Inequities in health…

Abstract

Purpose

The purpose of this paper is to decompose the inequities induced by the Nigerian health care financing sources and their effect on the income distribution. Inequities in health care financing sources are of immense policy concern particularly in developing countries such as Nigeria, where high-level income inequality exists, and the cost of medical care is generally financed out-of-pocket (OOP) due to limited access to health insurance.

Design/methodology/approach

The Duclos et al. decomposition model provided the theoretical framework for the study. Data were obtained from two waves of the Nigeria General Household Survey (GHS) panel, 2012–13 and 2015–16. The analysis covered 3,999 households in 2012–13 and 4,051 households in 2015–16. Two measures of health care financing: OOP payment and health insurance contribution (HIC) were used. The ability to pay measure was household consumption expenditure.

Findings

The major inequity issue induced by the OOP payments was vertical inequity. HICs created the problems of vertical inequity, horizontal inequity and reranking among households. Overall both health care financing options were associated with the worsening of income inequality both at the national and sectorial levels in the country. The operations of the NHIS need to be improved to ensuring improved health care coverage for the poor.

Originality/value

This paper fulfills an identified need to determine the income redistributive effects (REs) of the social health insurance (SHI) contribution at the national, urban and rural locations overtime.

Details

International Journal of Social Economics, vol. 47 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 16 September 2019

Marko Ledić and Ivica Rubil

The authors study the difference between multidimensional well-being inequality and income inequality and propose a method to decompose the difference between the Gini…

Abstract

The authors study the difference between multidimensional well-being inequality and income inequality and propose a method to decompose the difference between the Gini coefficients of income and equivalent income (EI), a multidimensional well-being measure that respects individual preferences towards what constitutes a good life. The authors propose a method to decompose the inequality difference into two parts: the vertical and reranking effects. The vertical effect arises from the correlation between income and non-income dimensions, and between income and preferences. The reranking effect arises from the fact that some persons occupy a different position in the EI distribution compared to the income distribution. The authors also propose a detailed decomposition method based on the Shapley value to decompose each of the two effects by non-income dimensions. The authors apply the decompositions using data for 27 countries, considering five non-income dimensions: unemployment, health, housing, crime and environment. The results show that inequality is much higher for EI that the reranking effect accounts for a large part of the inequality difference, and that health is the non-income dimension contributing most to both effects.

Book part
Publication date: 19 August 2021

Jason D. Shaw and Xiang Zhou

Explained pay dispersion theory (Shaw, Gupta, & Delery, 2002) contends that the consequences of pay dispersion depend on two critical contingencies: (1) the presence of legitimate…

Abstract

Explained pay dispersion theory (Shaw, Gupta, & Delery, 2002) contends that the consequences of pay dispersion depend on two critical contingencies: (1) the presence of legitimate or normatively acceptable dispersion-creating practices, and the (2) identifiability of individual contributions. In this chapter, the first 20 years of empirical evidence and theoretical offshoots of this theory are reviewed. Other recent studies on the outcomes of horizontal and vertical pay dispersion are also evaluated. The review concludes with an evaluative summary of the literature and the identification of several potential fruitful areas for future research.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-80117-430-5

Keywords

Book part
Publication date: 8 November 2017

Louise Dalingwater

The state has an important role to play in reducing inequalities and a string of legislation from the Equal Pay Act of 1970 to the Equality Act of 2010 requires all companies…

Abstract

The state has an important role to play in reducing inequalities and a string of legislation from the Equal Pay Act of 1970 to the Equality Act of 2010 requires all companies, institutions and associations, as well as private and public services, to ensure equal treatment in access to employment. Yet political discourse has hardly focused on gender equality until very recently. Mandatory equal pay reporting was promoted as part of the Conservative 2015 election manifesto. Moreover, during David Cameron’s speech to the Conservative Party in October 2015, the Prime Minister claimed that it was impossible to have true opportunity without equality and made explicit reference to the problem of gender inequality. This chapter will thus examine the reasons why there are still high inequalities in terms of pay and prospects for women in Britain and how the 2008 crisis has impacted on women. It will also discuss a range of new policies to tackle gender inequality and consider whether this represents a discursive shift from vague notions of fairness to a decisive commitment from central government to tackle gender inequalities head on.

Details

Inequalities in the UK
Type: Book
ISBN: 978-1-78714-479-8

Keywords

Article
Publication date: 1 June 1997

James L. Price

Addresses the standardization of the measurements and the labels for concepts commonly used in the study of work organizations. As a reference handbook and research tool, seeks to…

16206

Abstract

Addresses the standardization of the measurements and the labels for concepts commonly used in the study of work organizations. As a reference handbook and research tool, seeks to improve measurement in the study of work organizations and to facilitate the teaching of introductory courses in this subject. Focuses solely on work organizations, that is, social systems in which members work for money. Defines measurement and distinguishes four levels: nominal, ordinal, interval and ratio. Selects specific measures on the basis of quality, diversity, simplicity and availability and evaluates each measure for its validity and reliability. Employs a set of 38 concepts ‐ ranging from “absenteeism” to “turnover” as the handbook’s frame of reference. Concludes by reviewing organizational measurement over the past 30 years and recommending future measurement reseach.

Details

International Journal of Manpower, vol. 18 no. 4/5/6
Type: Research Article
ISSN: 0143-7720

Keywords

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