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Journal articles on the topic 'Effect of wages on'
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1
Schmieder, Johannes F., Till von Wachter, and Stefan Bender. "The Effect of Unemployment Benefits and Nonemployment Durations on Wages." American Economic Review 106, no. 3 (March 1, 2016): 739–77. http://dx.doi.org/10.1257/aer.20141566.
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We estimate that unemployment insurance (UI) extensions reduce reemployment wages using sharp age discontinuities in UI eligibility in Germany. We show this effect combines two key policy parameters: the effect of UI on reservation wages and the effect of nonemployment durations on wage offers. Our framework implies if UI extensions do not affect wages conditional on duration, then reservation wages do not bind. We derive resulting instrumental variable estimates for the effect of nonemployment durations on wage offers and bounds for reservation wage effects. The effect of UI on wages we find arises mainly from substantial negative nonemployment duration effects. (JEL J31, J64, J65)
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Tyler, Denise, Olga Khavjou, Melissa Hunter, Marie Squillace, Judith Dey, and Iara Oliveira. "EFFECT OF STATE WAGE POLICIES ON DIRECT CARE WORKER WAGES." Innovation in Aging 6, Supplement_1 (November 1, 2022): 249. http://dx.doi.org/10.1093/geroni/igac059.987.
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Abstract Direct care workers (DCWs) have low wages and some states have tried to improve their wages through policies such as Medicaid wage pass-throughs and wage floors specific to DCWs. The purpose of this study was to examine the wages of DCWs in comparison to those of other entry level workers and assess the effect of state wage policies on changes in DCW wages. We analyzed state-level hourly wages using Bureau of Labor Statistics (BLS) data for two categories of DCWs separately—(1) home health and personal care aides and (2) nursing assistants and compared these to wages for other entry-level workers. Results show that many states that implemented policies to improve the wages of DCWs reduced the gap between these workers’ wages and the wages of other entry-level workers, but the gap was still substantial in many states. Additional efforts will be needed to increase DCW wages.
3
Kaestner, Robert. "New Estimates of the Effect of Marijuana and Cocaine Use on Wages." ILR Review 47, no. 3 (April 1994): 454–70. http://dx.doi.org/10.1177/001979399404700306.
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Using the 1984 and 1988 waves of the National Longitudinal Survey of Youth, this study provides an update of several previous cross-sectional estimates of the effect of illicit drug use on wages, as well as the first longitudinal estimates of that effect. The cross-sectional results, which are generally consistent with the surprising findings of previous research, suggest that illicit drug use has a large, positive effect on wages. The longitudinal estimates, which control for unobserved heterogeneity in the sample, are mixed: among men, the estimated wage effects of both marijuana and cocaine use are negative, but among women, the effect of cocaine use remains positive and large. Because the longitudinal model is imprecisely estimated, however, those results are inconclusive.
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Nekoei, Arash, and Andrea Weber. "Does Extending Unemployment Benefits Improve Job Quality?" American Economic Review 107, no. 2 (February 1, 2017): 527–61. http://dx.doi.org/10.1257/aer.20150528.
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Contrary to standard search models predictions, past studies have not found a positive effect of unemployment insurance (UI) on reemployment wages. We estimate a positive UI wage effect exploiting an age-based regression discontinuity design in Austria. A search model incorporating duration dependence predicts two countervailing forces: UI induces workers to seek higher-wage jobs, but reduces wages by lengthening unemployment. Matching-function heterogeneity plausibly generates a negative relationship between the UI unemployment-duration and wage effects, which holds empirically in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firm quality and attenuating wage drops. (JEL J31, J64, J65)
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Thompson, Lyke, Greg Powers, and Berenice Houchard. "The Wage Effects of Supported Employment." Journal of the Association for Persons with Severe Handicaps 17, no. 2 (June 1992): 87–94. http://dx.doi.org/10.1177/154079699201700203.
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This study investigated the effects of supported employment on wages earned by persons with disabilities. We sought to determine whether supported employment produced higher wages than sheltered employment, whether any effect was a result of increases in wage rates or hours, and whether one model of supported employment had more impact than another. The analysis showed that wages increased after entering supported employment, after correcting for differences in employees' measured IQs. Entry into supported employment had a more consistent impact on wage rates than on hours of employment. Individual placement was shown to have the largest effect on wages, while participation in mobile crews had little effect.
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Gaston, Noel, and Daniel Trefler. "Protection, Trade, and Wages: Evidence from U.S. Manufacturing." ILR Review 47, no. 4 (July 1994): 574–93. http://dx.doi.org/10.1177/001979399404700404.
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This paper investigates the effects of international trade policy on wages in U.S. manufacturing industries in 1983. The data set combines micro labor market data with comprehensive data on tariffs and nontariff trade barriers such as quotas and antidumping duties. The authors find that workers in unprotected, export-oriented industries had higher wages than workers with similar observable characteristics in protected, import-competing industries; more specifically, exports had a positive wage effect and imports had a smaller negative wage effect. Other findings are that nontariff barriers had no significant effect on wages, and tariffs appear to have had a large negative wage effect, even after the authors control for the trade protection received by low-wage industries.
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Dube, Arindrajit, Laura Giuliano, and Jonathan Leonard. "Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior." American Economic Review 109, no. 2 (February 1, 2019): 620–63. http://dx.doi.org/10.1257/aer.20160232.
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We analyze how separations responded to arbitrary differences in own and peer wages at a large US retailer. Regression-discontinuity estimates imply large causal effects of own-wages on separations, and on quits in particular. However, this own-wage response could reflect comparisons either to market wages or to peer wages. Estimates using peer-wage discontinuities show large peer-wage effects and imply the own-wage separation response mostly reflects peer comparisons. The peer effect is driven by comparisons with higher-paid peers—suggesting concerns about fairness. Separations appear fairly insensitive when raises are similar across peers—suggesting search frictions and monopsony are relevant in this low-wage sector. (JEL D63, J31, J42, J62, L81)
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Nguyen, Phuong Van, Hien Huynh Thi Ngoc, Hoa Doan Xuan Trieu, Khoa Tien Tran, and Dung Hanh Phuong Nguyen. "The Effect of Horizontal Spillovers from FDI on Average Wages: Evidence from Vietnamese Enterprises." Review of Pacific Basin Financial Markets and Policies 23, no. 02 (June 2020): 2050010. http://dx.doi.org/10.1142/s0219091520500101.
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This study aims to find fresh evidences of the effects of horizontal spillover, trade orientation, and firm characteristics on real wages moderated by five categories of ownership. Based on an exploration of 2007–2015 Vietnamese firm-level data collected by the General Statistics Office of Vietnam, the findings reveal significantly positive effects of horizontal spillover and export orientation on average wages. In contrast, import orientation negatively affects wages. The results are supported by the literature of labor market competition and productivity improvement. Importantly, the effect of horizontal spillovers from FDI and trade on average wage varies significantly across ownership types. Although horizontal spillover and the gender ratio have no overall influence on average wages, they do have negative effects on wages in Vietnamese domestic private. Besides, the firm characteristics such as firms’ real output, capital intensity, market share, and net income are also important predictors for the rise of the firm-level average wage in Vietnam.
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Zhang, Xiaofang, and Fei Yang. "The Effect and Mechanism of Trade Liberalization on Wage." International Journal of Business and Management 15, no. 5 (April 27, 2020): 184. http://dx.doi.org/10.5539/ijbm.v15n5p184.
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This research discussed the relationship and mechanism between trade liberalization and the wage level of enterprises. Using the firm-level data from Annual Survey of Industrial Firms(ASIF) database and tariff data from World Bank, we find that, the final goods trade liberalization will reduce the wage, while the intermediate goods trade liberalization will improve the level of enterprises' wages. And that trade liberalization affects wages through firm performance. The reduction of input tariff reduces firm’s input cost, and increases firm’s sales and profit, then the firm has more ability to provide higher wages. While the decline of output tariff damages firm’s performance, which leads enterprises to transfer the loss by reducing wages.
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Wetzels, Cécile. "Motherhood and wages." Transfer: European Review of Labour and Research 10, no. 1 (February 2004): 088–105. http://dx.doi.org/10.1177/102425890401000109.
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This article examines labour force participation rates and wage rates according to gender and parenthood in a selection of European countries. Since the ranking of European countries according to their labour force participation rates does not coincide with the ranking of countries according to gross and net hourly wages in purchasing power parities according to gender and parenthood, countries with low female participation rates may face selection into employment effects in women's wages. A review of mostly single-country studies on women's wages shows that for the Scandinavian countries it is still unclear whether care-related leave has consequences for human capital accumulation, whether these consequences are overcome later in a career or not, and whether leave affects wages by signalling. The effect of working part-time on women's wages has not been a focus of research in Scandinavian full-time economies but British studies make clear the negative effects of working part-time on British women's wages. No such clear effect is found in the Dutch part-time economy. There is still a child pay gap in the UK. No such effect is found in the Netherlands nor in Scandinavian countries.
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Drydakis, Nick. "The effect of sexual activity on wages." International Journal of Manpower 36, no. 2 (May 5, 2015): 192–215. http://dx.doi.org/10.1108/ijm-11-2012-0163.
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Purpose – The purpose of this paper is to estimate whether sexual activity is associated with wages, and also to estimate potential interactions between individuals’ characteristics, wages and sexual activity. Design/methodology/approach – The central hypothesis behind this research is that sexual activity, alike health indicators and mental well-being, may be thought of as part of an individual’s set of productive traits that affect wages. Using two-stage estimations the author examines the relationship between adult sexual activity and wages. Findings – The author estimates that there is a monotonic relationship between the frequency of sexual activity and wage returns, whilst the returns to sexual activity are higher for those between 26 and 50 years of age. In addition, heterosexuals’ sexual activity does not seem to provide higher or lower wage returns than that of homosexuals, but wages are higher for those health-impaired employees who are sexually active. Over-identification tests, robustness checks, falsification tests, as well as, decomposition analysis and sample selection modelling enhance study’s strength. Social implications – Contemporary social analysis suggests that health, cognitive and non-cognitive skills and personality are important factors that affect wage level. Sexual activity may also be of interest to social scientists, since sexual activity is considered to be a barometer for health, quality of life, well-being and happiness. Originality/value – The paper adds to the literature on the importance of unobserved characteristics in determining labour market outcomes.
12
Zou, Tao, Yue Zhang, and Bo Zhou. "Does GPA matter for university graduates’ wages? New evidence revisited." PLOS ONE 17, no. 4 (April 12, 2022): e0266981. http://dx.doi.org/10.1371/journal.pone.0266981.
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This paper examines the effect of GPA on graduating students’ wages using a data set from an elite university in China. Students are homogenous since their majors are closely related to economics and business The OLS regression results indicate that GPA has positive and significant impacts on wages on average. As GPA increases by 1 unit, the starting monthly wage increases by 29.6 percent on average, and the wage in the survey year that is 3–5 years after graduation (current wage) soars by 25 percent. Theoretically, the GPA matters for the wages due to both the human capital or signaling effect. Given that the signaling effect should diminish over time, and the effect on starting wage is a little larger than that on current wage, it is suggested that signaling effect of GPA should be trivial, and high GPA is associated with high wage should be mainly due to the human capital effect. These results are robust to different model specifications. The distributional analysis suggest that the effects are positive for both wages and significant for almost all quantiles. In addition, the effect is basically the same from the 0.05th to 0.80th quantiles, and then rises as the starting wage increases. The effect on current wage is a U shape from the 0.05th to 0.60th quantile, and then becomes an inverse-U shape with peaks at the 0.75th and 0.80th quantiles where the effect is 82.2 percent when GPA increases by one unit.
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Sukatrilaksana, Leo. "THE EFFECT OF MINIMUM WAGES ON EMPLOYMENT IN INDONESIA." Buletin Ekonomi Moneter dan Perbankan 5, no. 3 (October 11, 2003): 74–121. http://dx.doi.org/10.21098/bemp.v5i3.314.
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Minimum wages have been a major consideration in Indonesia in recent years, as the government has strongly pursued a minimum wage policy. The levels of regional minimum wages have been increased significantly since 1989, and there is a concern that these increases may have slowed employment growth. Therefore, the purpose of this study is to examine the employment effects of minimum wages, using data for 26 provinces, covering the period from 1988 to 1999. The study focuses on different groups of workers within the urban formal sector. The results of graphical and statistical analysis indicate some support for the conventional theory of the negative employment effects of minimum wages.
14
Katz, Lawrence F., and Alan B. Krueger. "The Effect of the Minimum Wage on the Fast-Food Industry." ILR Review 46, no. 1 (October 1992): 6–21. http://dx.doi.org/10.1177/001979399204600102.
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Using a longitudinal survey of fast-food restaurants in Texas, the authors examine the impact of recent increases in the federal minimum wage on a low-wage labor market. Less than 5% of fast-food restaurants were using the new youth subminimum wage in July/August 1991, even though the vast majority paid a starting wage below the new hourly minimum wage immediately before it became effective. Although some restaurants increased wages beyond the level needed to comply with higher minimum wages in both 1990 and 1991, those federal minimum wage increases greatly compressed the distribution of starting wages in the Texas fast-food industry. Two findings at variance with conventional predictions are that (1) employment increased more in those firms likely to have been most affected by the 1991 minimum wage increase than in other firms and (2) price changes were unrelated to mandated wage changes.
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Borgschulte, Mark, and Heepyung Cho. "Minimum Wages and Retirement." ILR Review 73, no. 1 (May 6, 2019): 153–77. http://dx.doi.org/10.1177/0019793919845861.
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The authors study the effect of the minimum wage on the employment outcomes and Social Security claiming of older US workers from 1983 to 2016. The probability of work at or near the minimum wage increases substantially near retirement, and previous researchers and policies suggest that older workers may be particularly vulnerable to any disemployment effects of the minimum wage. Results show no evidence that the minimum wage causes earlier retirements. Instead, estimates suggest that higher minimum wages increase earnings and may have small positive effects on the labor supply of workers in the key ages of 62 to 70. Consistent with increased earnings and delayed retirement, higher minimum wages decrease the number of Social Security beneficiaries and amount of benefits disbursed. The minimum wage appears to increase financial resources for workers near retirement.
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Giotis, Georgios, and Naoum Mylonas. "Employment Effect of Minimum Wages." Encyclopedia 2, no. 4 (November 30, 2022): 1880–92. http://dx.doi.org/10.3390/encyclopedia2040130.
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The effect of minimum wages on employment is a mature, continuously researched topic. This study discusses the core theoretical approaches on the relationship between the minimum wage and employment, which is reflected by the empirical results from the international literature. Moreover, it presents the findings of the most recent research and the results of meta-analyses of this issue. While the theoretical approaches and outcomes of empirical studies vary, the meta-analysis demonstrates the lack of a significant correlation between minimum wages and employment. In light of the latest developments and meta-regressions, the literature does not provide a clear and definite sign of the relationship, but the trend seems to be driven towards a negative direction of the impact for the more sensitive groups. Therefore, further light needs to be shed onto this issue.
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Roshchin, S., and V. Rudakov. "The effect of university quality on graduates’ wages." Voprosy Ekonomiki, no. 8 (August 20, 2016): 74–95. http://dx.doi.org/10.32609/0042-8736-2016-8-74-95.
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The article is devoted to the impact of university quality on graduates’ wages. It combines the information on university, graduates’ wages, socio-demographic characteristics with the data on Unified State Exam (USE) enrollment rates. It is shown that the graduates of high-quality universities have stable wage premium comparing with ordinary university graduates after controlling for academic, socio-demographic and labor market factors. One additional point at the university USE enrollment rate provides the graduates with 1,4-1,5% wage premium. Earnings obtained by the graduates of most selective universities are 23% higher compared with those of the low-quality universities. Impact of the university quality measured by its status is insignificant. Work experience is a more significant predictor of recent graduates’ wages while the significance of the quality of university for recent graduates is lower than for the whole sample.
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Ilalan, Deniz. "How US wages effect post-socialist European stock markets: an empirical study." Economics and Business Letters 7, no. 4 (November 23, 2018): 179. http://dx.doi.org/10.17811/ebl.7.4.2018.179-188.
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Following the famous tapering speech of Bernanke on 2013, US non-farm payroll data became the leading indicator for the monetary policy of Fed. After midst of 2014 Fed shifted its attention to average hourly wage increases which was regarded as the determinant of inflation. As inflation is closely linked with possible increments of Fed funds rate, investors began to follow US wages more closely. We investigate the impact of US wages especially through concentrating on some Post-Socialist European stock markets. As US wages are found to Granger cause these stock exchanges, interestingly with domestic wages, a similar causation relation could not be achieved. This brings out the question whether wages are indeed an indicator for stock markets or not.
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Sturman, Michael C., Andrey D. Ukhov, and Sanghee Park. "The Effect of Cost of Living on Employee Wages in the Hospitality Industry." Cornell Hospitality Quarterly 58, no. 2 (May 23, 2016): 179–89. http://dx.doi.org/10.1177/1938965516649691.
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This study examines the effect of cost of living (COL) on employee wages in the hotel industry. Although prior research clearly indicates that COL and wages are positively related, there is a lack of research explicitly considering the specific nature of the relationship between COL and wages, and potential moderators to the relationship. Using a dataset containing information on 97 jobs over 67 cities, our study shows that while there is a positive effect of COL on wages, the adjustment is not equal in magnitude to the difference that the COL levels would indicate. Furthermore, the effect of COL decreases as the average wage for the given job increases. We also show differences in COL’s effects for full-service versus limited-service hotels. We illustrate the implications of our findings by showing predicted wage rates for four jobs in five different cities, at both full-service and limit-service hotels. The study has implications for research, particularly for future work on COL and compensation. The findings also have important implications for practice, and may be particularly useful when managers need to set pay levels when local market data are unavailable.
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Boockmann, Bernhard, Raimund Krumm, Pia Rattenhuber, and Michael Neumann. "Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments." German Economic Review 14, no. 3 (August 1, 2013): 316–48. http://dx.doi.org/10.1111/geer.12016.
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Abstract The introduction, abolition and subsequent re-introduction of the minimum wage in the German electrical trade gave rise to series of natural experiments, which are used to study minimum wage effects. We find similar impacts in all three cases on wages, employment and the receipt of public welfare benefits. Average wages are raised by the minimum wage in East Germany, but there is almost no evidence for employment effects. The results also show that the wage effect is quickly undone after the abolition of the minimum wage.
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Machin, Stephen, and Alan Manning. "The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils." ILR Review 47, no. 2 (January 1994): 319–29. http://dx.doi.org/10.1177/001979399404700210.
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Using data on Wages Council coverage from the United Kingdom New Earnings Survey, the authors examine the impact of mandated minimum wages on wage dispersion and employment in the United Kingdom in the 1980s. They find evidence that a dramatic decline in the toughness of the regulation imposed by the Wages Councils through the 1980s—a decline, that is, in the level of the minimum wage relative to the average wage—significantly contributed to widening wage dispersion over those years. There is, however, no evidence of an increase in employment resulting from the weakening bite of the Wages Council minimum pay rates. Instead, consistent with the conclusions of several recent U.S. studies, the findings suggest that the minimum wage had either no effect or a positive effect on employment.
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Gao, Zhipeng, Zhenyu Wang, and Mi Zhou. "Is China’s Urbanization Inclusive?—Comparative Research Based on Machine Learning Algorithms." Sustainability 15, no. 4 (February 14, 2023): 3490. http://dx.doi.org/10.3390/su15043490.
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Improving the inclusiveness of urban development is crucial to improving the wages of low- and middle-income workers. In this study, we used machine learning to cluster urban labor into low, middle, and high socioeconomic groups in order to analyze the effects of economic agglomeration and compare them with the results, which were classified according to income. The results showed that economic agglomeration has improved the wages of the low and middle socioeconomic groups; the estimated wage spillover effect was 3.9%. By contrast, the estimated result based on the groups classified by a single index of income was 20.3%, which represents an overestimation of the wage spillover effect of economic agglomeration. This method is often used to explain the inclusiveness of China’s urbanization, leading to overestimation. Further mechanism analysis found that the characteristics of the industrial structure affect the change in wage elasticity caused by economic agglomeration, which has a moderating effect on the wages of workers. The differing wage elasticity associated with economic agglomeration is responsible for wage disparities in China.
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Campbell, Margo, and Linda Houser. "Connecting Caregiver Wages and Distress: Felt Precarity, Parenting, and Child Behavior." Families in Society: The Journal of Contemporary Social Services 101, no. 3 (June 16, 2020): 308–23. http://dx.doi.org/10.1177/1044389420913393.
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In contemporary socioeconomic contexts, employed mothers may experience felt precarity, an emotional reaction to structurally generated vulnerability. This study links wages, a potential source of precarity, to well-being using a family stress model of economic hardship. Findings were generally consistent with those of previous family stress models but with several differences supporting the concept of felt precarity. Mothers’ wages—independent of hardship—exerted direct effects on distress. Wages had a nonlinear effect on distress; while wage increases lessened distress, there was a wage “tipping point” beyond which distress again increased. While social workers should attend to the interconnected processes of family stress and parenting, their focus should also be directed to factors, like low wages, that are structurally embedded.
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Dubnovitskaya, Anastasia, and Kirill Furmanov. "Relative wage as a determinant of pay satisfaction in Russia." Applied Econometrics 66, no. 2 (2022): 99–117. http://dx.doi.org/10.22394/1993-7601-2022-66-99-117.
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We use the RLMS‐HSE data of Russian workers to investigate the relationship between pay satisfaction and both absolute and relative wages (relative wage is a ratio of the actual wage to the expected wage of an individual with a given vector of attribute). We found that the contribution of relative wages to pay satisfaction differs greatly for the relatively poor and rich workers (whose wages are lower and higher than the expected level respectively) with a greater effect of relative wages on pay satisfaction for relatively rich people rather than relatively poor ones.
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Cengiz, Doruk, Arindrajit Dube, Attila Lindner, and Ben Zipperer. "The Effect of Minimum Wages on Low-Wage Jobs*." Quarterly Journal of Economics 134, no. 3 (May 2, 2019): 1405–54. http://dx.doi.org/10.1093/qje/qjz014.
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Abstract We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach. We first estimate the effect of the minimum wage increase on employment changes by wage bins throughout the hourly wage distribution. We then focus on the bottom part of the wage distribution and compare the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it to infer the employment effect. We find that the overall number of low-wage jobs remained essentially unchanged over the five years following the increase. At the same time, the direct effect of the minimum wage on average earnings was amplified by modest wage spillovers at the bottom of the wage distribution. Our estimates by detailed demographic groups show that the lack of job loss is not explained by labor-labor substitution at the bottom of the wage distribution. We also find no evidence of disemployment when we consider higher levels of minimum wages. However, we do find some evidence of reduced employment in tradeable sectors. We also show how decomposing the overall employment effect by wage bins allows a transparent way of assessing the plausibility of estimates.
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Solnick, Loren M. "The Effect of Blue-Collar Unions on White-Collar Wages and Fringe Benefits." ILR Review 38, no. 2 (January 1985): 236–43. http://dx.doi.org/10.1177/001979398503800206.
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This study investigates the influence of blue-collar unions on the wages and fringe benefits of white-collar workers employed in the same establishment. The author uses establishment data on employee compensation in 1974, the last year such data were collected, to estimate these wage and fringe spillovers in the two-digit industries in the manufacturing sector. Wage spillovers appear in only three of 16 industries, with the effect ranging from 10 to 19 percent. For fringes, however, significant spillovers are evident in 12 industries, with effects ranging from 15 to 52 percent. Although the models estimated also allow for the influence of white-collar unions on white-collar wages and fringes, no such effects were observed.
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Wittawat Pherng, Piyaluk Buddhawongsa, Supanika Leurcharusmee, and Paravee Maneejuk. "MINIMUM WAGES AND WAGE DISTRIBUTION IN THAILAND." Journal of Technology and Operations Management 17, no. 2 (December 29, 2022): 40–50. http://dx.doi.org/10.32890/jtom2022.17.2.4.
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Minimum wage policies were designed to raise the wages of low-skilled workers. In this study, we use data from the Thai Labor Force Survey (2011-2020) to examine the impact of the minimum wage policy on the wage distribution using a quantile regression model corrected for sample selection with a copula. We find that the minimum wage has the strongest effect on the lowest quantile and the effect decreases toward the higher quantiles. This confirms the effectiveness of the minimum wage policy in raising the wages of low-income individuals. In addition, there is also a spill-over effect on individuals in higher wage quantiles. The effect of the minimum wage estimated by our model is smaller compared to the standard quantile regression. This suggests that without correcting for sampling bias, the estimated effect of the minimum wage leads to an upward bias.
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Endoh, Masahiro. "The Effect of Import Competition on Wages in the Japanese Manufacturing Sector." Asian Economic Papers 17, no. 1 (February 2018): 46–67. http://dx.doi.org/10.1162/asep_a_00585.
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This study estimates the effect of import competition in the final goods market on workers’ wages in the Japanese manufacturing sector by constructing a panel of matched worker–firm data for 1998–2013 wages. The baseline results show that import competition does not decrease unskilled workers’ wages and increases the skill premia of workers with college degrees or those in managerial and professional positions. Large firms and firms with low productivity also increased their wage premia through import competition, but the degree of increase due to firm-level factors is much smaller than that due to factors related to workers’ skill.
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Fernandes, Ana, Martin Huber, and Giannina Vaccaro. "Gender differences in wage expectations." PLOS ONE 16, no. 6 (June 2, 2021): e0250892. http://dx.doi.org/10.1371/journal.pone.0250892.
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Using an own survey on wage expectations among students at two Swiss institutions of higher education, we examine the wage expectations of our respondents along two main lines. First, we investigate the rationality of wage expectations by comparing average expected wages from our sample with those of similar graduates; further, we examine how our respondents revise their expectations when provided information about actual wages. Second, using causal mediation analysis, we test whether the consideration of a rich set of personal and professional controls, inclusive of preferences on family formation and number of children in addition to professional preferences, accounts for the difference in wage expectations across genders. Results suggest that both males and females overestimate their wages compared to actual ones and that males respond in an overconfident manner to information about realized wages. Personal mediators alone cannot explain the indirect effect of gender on wage expectations; however, when combined with professional mediators, this results in a quantitatively large reduction in the unexplained effect of gender on wage expectations. Nonetheless, a non-negligible and statistically significant direct (or unexplained) effect of gender on wage expectations remains in several, but not all specifications.
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Manning, Alan. "The Elusive Employment Effect of the Minimum Wage." Journal of Economic Perspectives 35, no. 1 (February 1, 2021): 3–26. http://dx.doi.org/10.1257/jep.35.1.3.
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It is hard to find a negative effect on the employment effect of rises in the minimum wage: the elusive employment effect. It is much easier to find an impact on wages. This paper argues the elusive employment effect is unlikely to be solved by better data, methodology, or specification. The reasons for the elusive employment effect are the factors contributing to why the link between higher minimum wages and higher labor costs are weaker than one might think and because imperfect competition is pervasive in the labor market.
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Li, Qianqian, Yong Jae Shin, and Unyong Pyo. "Impacts of CEO Incentives and Power on Employee Wages." International Academy of Global Business and Trade 18, no. 6 (December 31, 2022): 33–57. http://dx.doi.org/10.20294/jgbt.2022.18.6.33.
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Purpose - This study investigates the impact of CEO incentive compensation and power on employee wages. While CEO compensation negatively affects employee wages, powerful CEOs may care for employees, and their compensation can have positive impacts on employee wages.
Design/Methodology/Approach - Using data from US capital markets during 1992 - 2017, we employ pay-performance sensitivity to measure incentive compensation and CEO pay slices to proxy CEO power. We also examined the potential interaction effects between CEO compensation and CEO power. We conduct a Heckman two-step analysis to address potential sample bias and two-stage regression to address potential endogeneity.
Findings - While incentive compensation negatively affects employee wages, CEO power positively affects employee wages. When examining the interaction effect between incentive compensation and CEO power, we note that the incentive effect is negative on employee wages only when the CEO is less powerful. However, when the CEO is more powerful, the incentive effect is positive on employee wages.
Research Implications - When firms grant incentive compensation to CEOs for firm performance, they must also consider CEO power. Our results imply that CEO incentive compensation has a positive impact on employee wages when a CEO becomes more powerful. More incentive compensation to less-powerful CEOs could suppress employee wages and hurt firm performance in the long run.
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Lemiyana, Lemiyana, and Maya Panorama. "PENGARUH UPAH MINIMUM KOTA (UMK) TERHADAP KESEMPATAN KERJA DAN PENGANGGURAN DI KOTA PALEMBANG TAHUN 2004-2014." I-Finance: a Research Journal on Islamic Finance 3, no. 2 (January 29, 2018): 141. http://dx.doi.org/10.19109/ifinance.v3i2.1450.
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In Palembang the number of labor force shows an increasing number in the period of 11 years ie from 2004 to 2014. The increase in the workforce is followed by an increase in working population accompanied by an increasing number of unemployed. This study aims to determine how much the effect of wages on employment and unemployment from 2004 to 2014. Data analysis used in this study is multiple linear regression, where Y shows the variable of employment and unemployment, while X shows the variable minimum wage city . Based on the analysis conducted shows that wages have a positive effect on employment. This indicates that wage increases are in line with increased employment. Wages have a negative effect on job seekers graduating from junior high school, job seekers graduated from senior high school, job seekers graduated from S2 / S3, while wages have no effect on unemployment, job seekers graduated from primary school, graduated job seekers D1 / D2 / D3, job seekers graduated S1, and work placement
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Hilger, Anne, Christophe Jalil Nordman, and Leopold R. Sarr. "Which Skills Matter for What Type of Worker? Cognitive Skills, Personality Traits, Hiring Channels and Wages in Bangladesh." Indian Journal of Human Development 16, no. 2 (August 2022): 219–47. http://dx.doi.org/10.1177/09737030221120472.
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We use matched employer-employee data representing the formal sector in Bangladesh to provide descriptive evidence of both the relative importance of cognitive skills and personality traits in this part of the labour market and the interplay between skills and hiring channels in determining wages. While cognitive skills (literacy, a learning outcome) affect wages only by enabling workers to use formal hiring channels, they have no additional wage effect. Personality traits do not affect hiring channels, but they do enjoy a positive wage effect. This wage effect differs by hiring channel: those hired through formal channels benefit from higher wage associations with openness to experience, but lower effects of hostile attribution bias. Those hired through networks enjoy higher wages for higher levels of emotional stability, but they are also punished for higher hostile attribution bias—in line with different occupational levels being hired predominantly through one channel or the other. We provide suggestive evidence that employers might use hiring channels differently, depending on what skill they deem important: employers valuing communication skills, arguably observed during selection interviews, are associated with a larger within-firm wage gap between formal and network hires, while the importance of teamwork is associated with a smaller wage gap.
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Frías, Judith A., David S. Kaplan, and Eric Verhoogen. "Exports and Within-Plant Wage Distributions: Evidence from Mexico." American Economic Review 102, no. 3 (May 1, 2012): 435–40. http://dx.doi.org/10.1257/aer.102.3.435.
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This short paper examines the effect of exporting on within-plant wage distributions in employer-employee data on Mexican manufacturing plants. Using the late-1994 peso devaluation interacted with initial plant size as a source of exogenous variation in exporting and focusing on wages at the 10th, 25th, 50th, 75th and 90th percentiles within each plant, we document three patterns: (1) there is no evidence of an effect of exporting on wages at the 10th percentile; (2) the wage effects of exporting are larger at higher percentiles, up to the 75th; and (3) there is no evidence of an increase in dispersion within the top quartile.
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Kossova, Elena, Bogdan Potanin, and Maria Sheluntcova. "Estimating effect of marriage on male wages in Russia." Journal of Economic Studies 47, no. 7 (April 28, 2020): 1649–67. http://dx.doi.org/10.1108/jes-04-2019-0184.
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PurposePurpose of the article is to investigate the effect of marriage on male wages in Russia. The paper provides insight about contribution of observed and unobserved factors to wages of Russian men regarding their marital status.Design/methodology/approachDatabase is the Russian Longitudinal Monitoring Survey (RLMS) for 2016. We add to the literature by introducing Generalized Oaxaca–Blinder Decomposition of the difference in mean wages of married and unmarried men. This generalization is free of conditional mean independence assumption.FindingsWe reveal negative observed price effect and substantial positive effect of changes in unobserved characteristics of married and unmarried men in Russia.Originality/valueTo our knowledge, our study is the first one that gives estimation of the volume and structure of the male marriage wage premium in Russia. The proposed approach is applicable for estimating labor market premiums and penalties for various individual characteristics.
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Anam, Muhammad Syariful, Yuni Inawati, and Rina Rosia. "FACTORS AFFECTING THE HUMAN DEVELOPMENT INDEX (HDI) IN CENTRAL JAVA PROVINCE." Jurnal REP (Riset Ekonomi Pembangunan) 6, no. 1 (April 1, 2021): 12–22. http://dx.doi.org/10.31002/rep.v6i1.3653.
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This study examines the effects of poverty, gross regional domestic product (GRDP) and minimum wages on the human development index in Central Java Province. The data analysis method used in this research is panel data regression. From the results of selecting the best model, the regression model chosen is the fixed effect model. Based on the partial effect analysis results, it can be concluded conclude that poverty has a negative and significant effect on the human development index, while the GRDP and minimum wages have a positive and significant effect on the human development index. Then, poverty, GRDP and minimum wage simultaneously significantly affect the human development index in Central Java.
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Jäger, Simon, Benjamin Schoefer, Samuel Young, and Josef Zweimüller. "Wages and the Value of Nonemployment*." Quarterly Journal of Economics 135, no. 4 (May 18, 2020): 1905–63. http://dx.doi.org/10.1093/qje/qjaa016.
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Abstract Nonemployment is often posited as a worker’s outside option in wage-setting models such as bargaining and wage posting. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of nonemployment among initially employed workers. Our quasi-experimental variation in the value of nonemployment arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit changes: point estimates imply a wage response of less than $0.01 per $1.00 UI benefit increase, and we can reject sensitivities larger than $0.03. The insensitivity holds even among workers with low wages and high predicted unemployment duration, and among job switchers hired out of unemployment. The insensitivity of wages to the nonemployment value presents a puzzle to the widely used Nash bargaining model, which predicts a sensitivity of $0.24–$0.48. Our evidence supports wage-setting models that insulate wages from the value of nonemployment.
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Sarkar, Santanu. "Towards a Model of Contractualisation of Labour in India: Testing the Effect of Unionisation of Regular Workers and the Wage Gap." NHRD Network Journal 16, no. 1 (January 2023): 20–31. http://dx.doi.org/10.1177/26314541221134862.
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When manufacturing firms employed labour on a low-wage contract in big numbers during the post-reform in India, the demand for cheap contract labourers increased and contract labourers were prepared to work for lower wages as they were not unionised and could not bargain for higher wages. So, have regular workers tried to organise their contractual counterparts so that latter could negotiate higher wages? By helping contract labourers, have regular workers lost the premium wages that they were able to negotiate? In this article, I used wages of regular workers and contract labourers and the wage gap between the two groups to come up with a framework for understanding why contract labourers continued to help firms in India’s manufacturing sector as well by not moving the elasticity of labour demand and demand of substitution of labour upward concerning all other inputs to the production during the post-liberalisation era. I posit four different scenarios to speculate how improved labour flexibility made one of the two sections of workers prosper at the cost of the other section’s hardships.
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Purba, Dearni Christina, Purwaka Hari Prihanto, and Siti Aminah. "Pengaruh tingkat partisipasi angkatan kerja, indeks harga konsumen, produk domestik regional bruto terhadap upah rata-rata Pulau Sumatera." e-Jurnal Ekonomi Sumberdaya dan Lingkungan 9, no. 3 (November 30, 2020): 158–69. http://dx.doi.org/10.22437/jels.v9i3.11958.
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This study ains to analyze the Development of Labor Force Participation Rate, Consumer Price Index and Gross Regional Domestic Product and Average Wages in Sumatera and analyze the influence of the Development of Labor Force Participation Rate, Consumer Price Index, and Gross Regional Domestic Product on Average Wages in Sumatera. The data used in this study are secondary data sourced from the Central Statistics Indonesia office. For data analysis using panel data analysis. The average wage is a Bound variable that is influenced by three independent variables, namely the Labor Force Participation Rate, the Consumer Price Index, and the Gross Regional Domestic Product. Based on the result of the analysis it is known that the Labor Force Participation Rate has a negative and not significant effect on the average wage in Sumatera. The consumer Price Index has a negative and not significant effect on the average wages in Sumatera. Gross Regional Domestic Product has a positive and significant effect on Average Wages in Sumatera.
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Lynn, Michael. "The Effects of Minimum Wages on Tipping: A State-Level Analysis." Compensation & Benefits Review 52, no. 3 (March 13, 2020): 98–108. http://dx.doi.org/10.1177/0886368720908959.
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Analyses of state differences in minimum wages and tip percentages found that (1) states with higher regular minimum wages have lower average tip percentages in coffee shops and higher average tip percentages in restaurants (after controlling for tipped minimum wages and cost-of-living) and (2) states with higher tipped minimum wages have lower average tip percentages in restaurants and higher average tip percentages in coffee shops (after controlling for regular minimum wages and cost of living). Although the data are only correlational and do not prove causality, these findings support the idea that paying tipped workers higher wages decreases the tip percentages those workers receive. Discussion centers on the potential processes underlying such an effect, its implications for minimum wage policy and directions for future research.
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Redmount, Esther, Arthur Snow, and Ronald S. Warren. "The Effect of Wage Payment Reform on Workers’ Labor Supply, Wages, and Welfare." Journal of Economic History 72, no. 4 (December 14, 2012): 1064–87. http://dx.doi.org/10.1017/s0022050712000691.
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We examine the economic consequences of an 1886 reform in Massachusetts that mandated the weekly payment of wages. We derive conditions on key elasticities of labor supply that determine the qualitative effects of the reform on workers’ effective wages and utility. We match census and administrative data on workers in a Lowell textile mill for a period encompassing the switch from monthly to weekly payment. Empirical estimates of a labor supply equation imply that the reform increased workers’ effective wage rates and welfare. The reform also decreased the mill workers’ average wage, as predicted by the theory of compensating differentials.
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Šilingienė, Violeta, Dalia Stukaitė, and Gintautas Radvila. "Darbo užmokestį lemiantys veiksniai: Lietuvos žemės ūkio sektoriaus atvejis." Management Theory and Studies for Rural Business and Infrastructure Development 37, no. 2 (June 17, 2015): 297–309. http://dx.doi.org/10.15544/mts.2015.27.
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In the scientific literature the problematic of the salary and wage gets a lot of attention, however mostly of research is limited either by modeling of the theoretical determinants that determine the level of wages or by analyzing the effect of separate individual determinants on the level of company or a specific occupation. Meanwhile, on the sector, as well as on the agricultural sector, level there is not much of research or they are fragmented. The scientific problem of the article: what external determinants have a significant impact on the level of wages in the agricultural sector? That implies the study objective – how the determinants affect wages of agricultural sector. The methods of the research: a systematic analysis of the scientific literature, the study and analysis of legislation, the analysis of quantitative statistical data and correlation analysis. Main results: common determinants affecting wage level are being supplemented with determinants of kind of economic activities; wages in the agricultural sector depend on all the examined determinants, however effects are different. It has been disclosed that the agricultural sector’s wages in Lithuania are more than average affected by a minimum monthly wage, capital investment and direct foreign investment; less by basic monthly salary, the number of unemployed persons and gross value added.
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Hannan, R. Lynn. "The Combined Effect of Wages and Firm Profit on Employee Effort." Accounting Review 80, no. 1 (January 1, 2005): 167–88. http://dx.doi.org/10.2308/accr.2005.80.1.167.
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This study investigates whether paying higher wages motivates employees to provide higher effort and whether firm profit moderates this relation. Consistent with gift exchange (Akerlof 1982) and reciprocity (Rabin 1993) models, my experimental results show that workers provided more effort when they were paid higher wages even though there was no ex post financial reward for doing so. Moreover, firm profit influenced the relation between wages and effort. Workers provided higher effort when firm profit decreased compared to when it increased. This suggests that the degree of reciprocity is affected by firm profit. However, workers' responded asymmetrically to firm profit, in that they behaved as if they expected to share in firm profit increases but not decreases. Although firms were fairly adept at predicting the profit-maximizing wage strategy, they apparently did not anticipate workers' reluctance to share in firm profit decreases.
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Card, David. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage." ILR Review 46, no. 1 (October 1992): 22–37. http://dx.doi.org/10.1177/001979399204600103.
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The imposition of a national minimum wage standard provides a natural experiment in which the “treatment effect” varies across states depending on the fraction of workers initially earning less than the new minimum. The author exploits this fact to evaluate the effect of the April 1990 increase in the federal minimum wage on teenagers' wages, employment, and school enrollment. Comparisons of grouped and individual state data confirm that the rise in the minimum wage increased teenagers' wages. There is no evidence of corresponding losses in teenage employment or changes in teenage school enrollment.
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Barth, Erling, Alex Bryson, and Harald Dale-Olsen. "Union Density Effects on Productivity and Wages." Economic Journal 130, no. 631 (April 24, 2020): 1898–936. http://dx.doi.org/10.1093/ej/ueaa048.
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Abstract We exploit changes in tax subsidies for union members in Norway to identify the effects of changes in firm-level union density on productivity and wages. Increased deductions in taxable income for union members led to higher membership rates and contributed to a lower decline in union membership rates over time in Norway. Accounting for selection effects and the potential endogeneity of unionisation, the results show that increasing union density at the firm level leads to a substantial increase in both productivity and wages. The wage effect is larger in more productive firms, consistent with rent-sharing models.
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Vasilev, Aleksandar. "Are “fair” wages quantitatively important for business cycle fluctuations in Bulgaria?" Review of Economic Perspectives 20, no. 1 (March 1, 2020): 91–105. http://dx.doi.org/10.2478/revecp-2020-0005.
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AbstractWe introduce “fair” wages in a general-equilibrium model where worker’s effort is unobservable and investigate whether such a mechanism can quantitatively account for the degree of real wage rigidity in the Bulgarian labor markets, as documented in Lozev, Vladova, and Paskaleva (2011) and Paskaleva (2016). In contrast to Danthine and Kurmann (2004), we internalize the effect that past wages have on the current effort level. We calibrate the model to Bulgarian data (1999-2016), and quantify the effect of technological shocks on hours and wages in the theoretical setup. Overall, the calibrated model with “fair” wages performs poorly when it comes to the relative volatilities of labor market variables. This is because aggregate labor market conditions, as proxied by the employment rate and past aggregate wages, turn out not to be quantitatively important for business cycles in Bulgaria.
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Sapuwati, Tina, and Ika Chandriyanti. "Faktor-Faktor yang Mempengaruhi Tingkat Pengangguran di Kota Banjarmasin Tahun 2009-2019." JIEP: Jurnal Ilmu Ekonomi dan Pembangunan 5, no. 2 (November 24, 2022): 525. http://dx.doi.org/10.20527/jiep.v5i2.6954.
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The purpose of this study was used to (1) analyze the effect of model 1 labor force participation rate, inflation, minimum wages and aconomic growth on unemployment; (2) to analyze the influence of model 2 the labor force, inflation, minimum wages and economic growth on unemployment; (3) to determine which factor is the most in influencing unemployment in Banjarmasin City.The source of the data used in this study is secodary data obtained through the Central Bureau of Statistic of the City of Banjarmasin and the Department of Cooperatives for Micro Enterprises and Manpower of Banjarmasin City. The analysis which will be stated through the F test (simultaneously) and T test (Partially) using the SPSS version 16.0 aplication.The results of this study indicate that (1) the level og labor force participation, inflation, minimum wages and economic growth individually (partially), inflation and economic growth have a significant effect on unemployment. While the labor force participation rate and the minimum wage do not have a significant effect on unemployment; (2) labor force, inflation, minimum wages and economic growth individual (partial), inflation and economic growth have a significant effect on unemployment. While the labor force and minimum wages have no significant effect on unemployment; (3) together (simultaneously) the level of labor force participation, inflation, minimum wages and economic growth have a positive and significant effect on unemployment; (4) together (simultaneously) the labor force, inflation, minimum wages, and economic growth have a positive and significant effect on unemployment; (5) the most dominant factor affecting unemployment in Banjarmasin City, model 1 is inflation, while model 2 is economic growth.
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Abdulkhairova, Elzara Musaevna, and Sevil Eskenderovna Bekirova. "CYCLIC RELATIONSHIP BETWEEN WAGES, LABOR PRODUCTIVITY AND HUMAN CAPITAL QUALITY." Scientific Bulletin: finance, banking, investment., no. 2 (51) (2020): 127–33. http://dx.doi.org/10.37279/2312-5330-2020-2-127-133.
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The article assesses the dependence of wages on factors that have a predominant effect on wage dynamics. The cyclic relationship between wages, labor productivity and the quality of human capital is analyzed. The criteria for the effectiveness of strategic management are disclosed. The problems of reproduction of human capital are considered. The reasons for the decline in the quality of human capital due to the low level of wages in the Russian economy are revealed. The main directions of achieving balanced growth rates of labor productivity, wages and reproduction of human capital are identified.
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Moll, P. G. "Black South African Unions: Relative Wage Effects in International Perspective." ILR Review 46, no. 2 (January 1993): 245–61. http://dx.doi.org/10.1177/001979399304600203.
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Despite the disenfranchisement of blacks in South Africa, the state's refusal to officially recognize black unions until 1980, and police repression of the union movement, this analysis of data for 1985 shows that black unions in South Africa had by that year made wage gains similar to those of unions in more developed countries. The union effect on wages for black blue-collar workers was 24%, which is in the range of effects found in studies of U.S. unions and above the range of effects found for European unions. Another finding is that black unions compressed wages across skill levels, an effect probably owing to black unions' primary emphasis on improving the lot of unskilled workers.
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Ilsøe, Anna, Trine Pernille Larsen, and Jonas Felbo-Kolding. "Living hours under pressure: flexibility loopholes in the Danish IR-model." Employee Relations 39, no. 6 (October 2, 2017): 888–902. http://dx.doi.org/10.1108/er-03-2017-0049.
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Purpose The purpose of this paper is to investigate the effect of part-time work on absolute wages. The empirical focus is wages and working hours in three selected sectors within private services in the Danish labour market – industrial cleaning, retail, hotels and restaurants – and their agreement-based regulation of working time and wages. Theoretically, this analysis is inspired by the concept of living hours, which addresses the interaction between working hours and living wages, but adds a new layer to the concept in that the authors also consider the importance of working time regulations for securing a living wage. Design/methodology/approach The paper builds on desk research of collective agreements and analysis of monthly administrative register data on wages and working hours of Danish employees from the period 2008-2014. Findings This analysis shows that the de facto hourly wages have increased since the global financial crisis in all three sectors. This is in accordance with increasing minimum wage levels in the sector-level agreements. The majority of workers in all three sectors work part-time. Marginal part-timers – 15 hours or less per week – make up the largest group of workers. The de facto hourly wage for part-timers, including marginal part-timers, is relatively close to the sector average. However, the yearly job-related income is much lower for part-time than for full-time workers and much lower than the poverty threshold. Whereas the collective agreement in industrial cleaning includes a minimum floor of 15 weekly working hours – this is not the case in retail, hotels and restaurants. This creates a loophole in the latter two sectors that can be exploited by employers to gain wage flexibility through part-time work. Originality/value The living wage literature usually focusses on hourly wages (including minimum wages via collective agreements or legislation). This analysis demonstrates that studies of low-wage work must include the number of working hours and working time regulations, as this aspect can have a dramatic influence on absolute wages – even in cases of hourly wages at relatively high levels. Part-time work and especially marginal part-time work can be associated with very low yearly income levels – even in cases like Denmark – if regulations do not include minimum working time floors. The authors suggest that future studies include the perspective of living hours to draw attention to the effect of low number of weekly hours on absolute income levels.