Wage Determination Research Articles

Labour Market Conditions and Wage Inflation in CEE Economies

In this paper, we test whether a wage Phillips curve can still be considered a reliable approximation of nominal wage determination in Poland, Hungary and the Czech Republic. The empirical evidence is broadly in favour of the existence of a negative relation between labour market slack and nominal wage inflation in the Central and Eastern European (CEE) economies between 2001 and 2017. However, after 2009 wage inflation was significantly below the value that would have been predicted by an estimated wage Phillips curve. The results of rolling OLS estimations confirm a weakening of the negative relation with the unemployment gap. A closer look at the recent evolution of labour market conditions in Poland, Hungary and the Czech Republic suggests that the composition effects on labour supply, especially those linked to demographic and migration trends, could be particularly relevant. Other possible explanations generally mentioned with reference to advanced economies - such as a large share of long-term unemployment, part-time and temporary workers or workers that are underemployed or marginally attached to the labour market - probably had no role or only a marginal one in the recent weak nominal wage growth in the three countries.

The Sustainable of Environmental Carrying Capacity To Support on Food Security (Nagari Sulit Air, X Koto Diatas District, Solok, West Sumatra)

The existing problems such as the poverty and malnutrition showed that food security management in Nagari Sulit Air is not sustainable yet. The research objective is to analyze the food security status of households farmers and the carrying capacity of ecological environment related to food availability. The research design used to the quantitative approached with the survey method. The result shows that nutritional status of family heads are derived thin category 19.15%, 69.15% normal, and 11.70% fat. The children with ideal weight are 37.78% and 62.22% is not ideal. The behavior resilience of households with a determinant of income (Y), farmer (X1), livestock (X2), wages (X3), consumption (X4), and capital (X5) based on the analysis of multiple regeresi model is Y = 7.868E-5 + 0.283 X1 + X2 0.367 + 0.417 X3-X4 0.557 – 0.28 X5. The availability of water in 2013-2025 predicted is 68.119.599,7 m3/year, while the demand of water in 2013 is 12.7072 million m3/year and in 2025 is 16.172.267 m3/year. The availability of land is 44.995,59 ha, the demand of land is 2.266,2 ha. The poverty and malnutrition become problems because of the other things such as the lack of education, health facilities, and inadequate infrastructure.

발달장애인의 일자리 특성과 임금 결정에 영향을 미치는 요인에 대한 연구

발달장애인의 일자리 특성과 임금 결정에 영향을 미치는 요인에 대한 연구

Wage differences between immigrants and natives: the role of literacy skills

ABSTRACT This paper analyses the impact of literacy skills on wage differences between natives and immigrants, using Austria as a case study. We show that, for both groups, literacy skills are an important determinant of the hourly wage. In the second step, we show that differences in proficiency with respect to literacy can explain more than 30% of the total wage gap of 11 log points between natives and immigrants. When adding literacy skills to the wage decomposition, the unexplained part vanishes almost completely, suggesting that the wage difference between immigrants and natives can, to a large extent, be explained. The importance of literacy skills in explaining wage differences between natives and immigrants is robust across several sensitivity tests.

On the Very Idea of a Just Wage


 
 
 The way that wages are determined in a market economy produces results that strike most people as morally counterintuitive, if not positively unjust. I argue that there is an important and easily defensible principle underlying the system—it is designed to channel labour to its best employment, the way that it does any other resource. But many consider this defence too minimal, and so strive to find a thicker, more robust moral principle that can be used to defend the market, using concepts like ‘contribution’, ‘effort’, ‘laziness’, ‘skill’ or ‘talent’—all of which combine to provide a concept of ‘desert’, or ‘fairness’ in compensation. The objective of this paper is to caution against such overreach. I begin by articulating what I take to be the central principle underlying the determination of wages. I go on to discuss three different ways that both critics and defenders of the market have sought to go further than this, by introducing thicker moral concepts to the discussion, and why each of these initiatives fails. My central contention will be that markets are structurally unable to deliver ‘just’ wages, according to any everyday-moral understanding of what justice requires in cooperative interactions.
 
 

Cross-sectoral coordination and regulation of wage determination in northern Europe: Divergent responses to multiple external pressures

We examine changes in collective wage regulation in five northern European countries since 2000, with a focus on coordination across sectors, articulation between levels and determination of wage floors. Earlier change in the functioning of wage bargaining arrangements in Germany placed pressure on other northern countries. In Finland, employers recently instigated a shift from tripartite incomes policy to manufacturing-led pattern bargaining, with increased scope for decentralized negotiations. This made Finnish arrangements more similar to their Nordic counterparts, which have been marked by modest adaptations. Divergence continues in wage floor regulation. Increased statutory generalization of collectively agreed minimum wages has moved Germany and Norway closer to Finland, while Denmark and Sweden still rely solely on collective bargaining. The multi-faceted employer and state approaches to wage regulation are not consistent with recent claims of a neoliberal transformation across the northern coordinated economies.

BAGAIMANAKAH PERAN SERIKAT PEKERJA DALAM PENENTUAN UPAH SETELAH BERLAKUNYA PERATURAN PEMERINTAH NO. 78 TAHUN 2015 TENTANG PENGUPAHAN

Law no. 13 of 2003 on Manpower clearly regulates the determination of district minimum wage set by the Governor by taking into account the recommendations of the Wage Council, the Wage Council conducts a market survey to establish the standard of living needs of a person. The Manpower Act states that in the process of establishing a minimum wage the need for negotiations between the wage council, trade unions and employers' organizations. While the Governor looks for the middle line to set the minimum wage. After the issuance of Government Regulation no. 78 Year 2015 on Wages, minimum wage determination is no longer through negotiation, but through minimum wage calculation formula that is with the minimum wage of the current year, inflation and gross domestic income. The author intends to find out about the role of unions after the issuance of Government Regulation no. 78 of 2015 on remuneration, and determination of minimum wage. The author examines this issue using nomative research methods supported by expert interview data. The author analyzes that after the issuance of the Government Regulation on Remuneration of unions has ceased to function in the protection of workers' welfare.

Changes in returns to education for off-farm wage employment: evidence from rural China

PurposeThe purpose of this paper is to examine the role of education in the labor market and to understand how returns to education change over time in rural China.Design/methodology/approachUsing nationally representative survey data from 2004 to 2015, this study provides insights on wage determination in the labor market and examines how the returns to education in rural China differ with time and educational endowment. This study applies ordinary least squares estimation and the Heckman selection model to estimate the returns to education.FindingsThe returns to education decreased during the observed years from more than 6 percent in 2004 to only about 3 percent in 2011, rising to nearly 4 percent in 2015. The overall trend is robust and observed within groups defined by education. Additionally, the returns to education vary greatly with educational endowment. Tertiary education has always maintained a high rate of returns at nearly 10 percent, while returns to senior high school education and below have gradually diminished.Originality/valueThe authors believe that the results will not only enrich studies on the returns to education in rural China, but also provide a basis for diagnosing the changes of rural labor market in the early twenty-first century.

Jacob Mincer Award

Previous articleNext article FreeJacob Mincer AwardPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinked InRedditEmailQR Code SectionsMoreHenry Farber is the 2018 recipient of the Jacob Mincer Award for a lifetime of contributions to labor economics. Farber is the Hughes-Rogers Professor of Economics at Princeton University. He is a fellow of the Society of Labor Economists, the Econometric Society, and the Labor and Employment Relations Association as well as a past president of the Society of Labor Economists.Hank’s study of labor markets and labor unions started well before his academic work in the field. He learned to drive a forklift while in his teens and for several years was a card-carrying member of the Teamsters Union. Hank earned his BA at the Rensselaer Polytechnic Institute before moving to Cornell’s School of Industrial and Labor Relations for an MS. Hank earned his PhD in economics at Princeton University. Hank’s integration of technical economics and econometrics with the traditional study of labor markets is a hallmark of his scholarship. His own background and his education help explain the remarkable success of his research agenda, but his wide breadth of interests and his deep insights into human behavior have been critical to his success.Hank’s first major papers were studies of union bargaining behavior and strikes and the determination of wages and employment in a union setting—both published in 1978, in the American Economic Review and the Journal of Political Economy, respectively. These were papers that defined a new and more quantitative approach to the great topics that occupied labor economists in the early post–Vietnam War period. Hank’s work changed forever the way these topics would be studied by economists.Hank’s first academic position at the Massachusetts Institute of Technology (MIT) brought him into contact with both the old and the new in labor economics. Fruitful collaborations led to a series of influential papers that defined a rigorous paradigm for studying arbitration systems. This work has had a broad impact outside the fields of labor economics and industrial relations, and it even led to the Ghiselli Award for Research Design from the American Psychological Association.Hank continued to work on a broad range of topics in labor economics after moving to Princeton University, making many fundamental contributions. Over the longer term, his study of employer/employee matching in the labor market and the role this plays in determining how pay is determined by the length of these matches has been a major motivation for much of Hank’s research. His work on job loss, returns to seniority, job flows, and wage dynamics has been extremely influential. This work is all characterized by insightful theory, state-of-the-art econometrics, and exceptional care with data.In the past decade, Hank has been involved in a debate about worker incentives that has been played out in an unusual form: the role of worker preferences among taxi drivers. Taxi drivers are among the last of those who work as free agents who may control the length of time that they work, and they form a special case where debates about incentives have been playing out for over a decade or more. Farber has illuminated and elevated this debate to so high a level that his may well be the last word on it.Hank’s contributions to the field of labor economics go well beyond his impressive scholarship. Starting with his tenure at MIT and extending to his time at Princeton, Hank has mentored an army of scholars who have created a whole new body of scholarship. Like Jacob Mincer, for whom this award is named, Hank has also been especially important as a mentor for women in the economics profession.Hank has been very active in the Society of Labor Economists and is always willing to lend a helping hand to younger or less established scholars. He has been on the editorial board (or associate editor) of the Industrial and Labor Relations Review, the Quarterly Journal of Economics, and the American Economic Review.On several occasions Hank has served as director of the Industrial Relations Section at Princeton University. He is known for his collegiality and the breadth of his friendships there.The influence of Hank’s academic accomplishments, the wide nature of his interests, the clarity of his writing, and the rigor of his work make him a natural recipient of the Jacob Mincer Award for a lifetime of contributions to labor economics.2018 Jacob Mincer Award Nominating Committee:John M. AbowdMarianne BertrandKerwin CharlesJohn HaltiwangerMarjorie McElroy (ex officio)Chris Taber (chair)Robert Willis Previous articleNext article DetailsFiguresReferencesCited by Journal of Labor Economics Volume 36, Number 3July 2018 Published for the Society of Labor Economists, Economics Research Center/ NORC Article DOIhttps://doi.org/10.1086/698833 © 2018 by The University of Chicago. All rights reserved.PDF download Crossref reports no articles citing this article.

Internal Migration in Spain: Dealing with Multilateral Resistance and Nonlinearites

AbstractThis article investigates the determinants of internal mobility of both foreigners and natives across Spanish provinces over the decade 2004‐14. Building on an extended gravity model, our econometric strategy controls for multilateral resistance to migration by including different fixed effects structures. Additionally, the article allows for some nonlinearities in the key economic determinants of migration, wages and unemployment. The main finding is that the impact of economic factors on internal migration is higher for foreigners than for natives; furthermore, the effect of these factors on internal migration is clearly nonlinear for the group of natives, while this only happens for foreigners when dyadic fixed effects of origin‐destination are considered. Finally, the article shows that the nature of the amenities with the greatest impact on internal movements differs between the two groups: foreigners look for social services and cultural amenities, whereas natives are more attracted by good climate conditions.

Pre-Crisis Wage Leadership in Croatia in the Context of Export Competitiveness: Any Lessons for the Future?

This study explores the determinants of sectoral wage dynamics in Croatia, including inter-sectoral wage linkages, using both panel data methods and Granger causality analysis. Given the large deficits in Croatian merchandise trade and accumulated external liabilities, wage formation in the exporting sectors receives a particular focus. It has been found that exporters are wage leaders and that labour productivity is a more important wage determinant for the exporting sectors than for other sectors. Public sector wages do not affect wages in private sectors. There are, however, wage spillovers within the group of exporting sectors and possibly a bi-directional causal relationship between wages in exporting and private sheltered sectors. Thus, some exporting industries may face pressure from wage increases in more successful exporting sectors as well as in private sheltered sectors. A more coordinated wage-setting system could contribute to improving overall export performance and reducing external trade imbalances.

Market Returns to Education in Pakistan, Corrected for Endogeneity Bias

This paper estimates the Mincer wage model for Pakistan’s labor market, using a relatively recent dataset and new independent variables. We employ instrumental variables and two-stage least squares to address the problem of the endogeneity of education. Our results show that the returns to education are biased downward due to endogeneity, with significant wage gaps emerging among different regions, between genders and between urban and rural job markets. The study’s choice of instruments has conceptual as well as empirical grounds. Our findings establish that the wage determination process is different for males and females across provincial labor markets.

The Changing Roles of Education and Ability in Wage Determination

This study examines changes in returns to formal education and cognitive skills over the last 20 years using the 1979 and 1997 waves of the National Longitudinal Survey of Youth. We show that cognitive skills had a 30%-50% larger effect on wages in the 1980s than in the 2000s. Returns to education were higher in the 2000s. These developments are not explained by changing distributions of workers' observable characteristics or by changing labor market structure. We show that the decline in returns to ability can be attributed to differences in the growth rate of technology between the 1980s and 2000s.

Measuring and Understanding Trade in Service Tasks

The revolution in information and communications technologies has put service tasks with strong tradability characteristics at high risk of being offshored. This article reviews studies proposing indicators of service tradability, exploring the labour market implications of service offshoring and developing theories to rationalize the facts. It suggests that both skill intensity and tradability are determinants of wage and employment effects. Nonetheless, the lack of widely accepted definitions of tradability, the absence of high‐quality data on service trade flows and the difficulty of measuring import competition at higher disaggregation levels pose difficulties in achieving further progress, pointing to areas for future research.

Sectoral choices and wage differences among Nigerian public, private and self-employees

PurposeHow does wage employment differ from self-employment in Nigeria? The purpose of this paper is to explore the determinants of participation and the resulting wage differentials with respect to individual employees in self-employment, public-wage employment and private-wage employment in the Nigerian labour market.Design/methodology/approachUsing the most recent cross-sectional data from the general household survey (GHS) panel for 2012/2013 wave (Nigeria National Bureau of Statistics (NBS), 2012), this paper applies the multinomial logit estimation for the sectoral choice and selectivity-corrected wage equation where appropriate.FindingsConsistent with other studies in Africa, the findings confirm that the Nigerian labour market is heterogeneous. Factors affecting sectoral choices differ greatly across the analysed sectors. Education, age and geopolitical zones are observed to be the major determinants of sectoral participation. On the basis of BFG estimates, the authors find evidence of downward bias only in the public sector wages that is due to the (Bourguignon, Fournier & Gurgand) allocation of individuals with better unobservable characteristics out of the public employment into the self-employment. Consequently, the human capital variables become no longer significant in the public wage equation after correcting for selectivity bias. However, education and gender are found to be significant determinants of wages in the private and self-employment sectors. The magnitude of the gender coefficient is more negative in self-employment, which may imply a possible gender wage gap in that sector. While the North-East, North-West and South-South zones are highly statistically significantly different from zero in the public sector, only the South-South and South-West zones appear to be significant in self-employment. Hence, such zonal variables are a reflection of differences in economic incentives in Nigeria.Research limitations/implicationsGiven the unregulated and precarious nature of employment in self-employment, adequate policies that address gender bias orientations are suggested.Originality/valueThis paper is one of the first that addresses sectoral choices and wage differentials among public, private and self-employment using the most recent GHS data for Nigeria.

Trade Unionism and Compensation Dynamics: A Research Overview

Over the years, government’s enacted laws and enunciated policies to provide for decent work life, guarantee minimum wages, cushion against rise in cost of living, ensure equal remuneration and deter employers from making unfair and arbitrary deductions from wages has led to a change in the impact trade unions had on wage determination. The present article discusses different aspects of trade union’s role in wage and salary administration in terms of choices and options for trade unions, unions’ impact on general wage levels, unions’ impact in terms of spill-over effect, role of trade unions in wage and salary policies and practices and so on.

The relation between labor productivity and wages in Brazil:

Abstract: Labor productivity is a crucial long-run determinant of real wages. Nonetheless, wage and productivity dynamics often diverge in practice due to a range of economic and institutional factors. This study analyzes the relation between the dynamics of labor productivity and wages in Brazil from 1996 to 2014, and adopts a sectoral perspective to account for divergent trends among economic sectors. Analyses are based on pooled data drawn from the National Accounts and the Pesquisa Nacional por Amostra de Domicílios, and hierarchical data models are estimated to assess the impacts of state- and sector-level factors on individuals’ wages. Results indicate that productivity is significantly positively associated with wage levels for all economic sectors, but that institutional factors such as labor formalization and minimum wage exert equally significant impacts, suggesting that wage growth over the 1996-2014 period was as much the result of institutional changes as of transformation of Brazil’s productive structure.

How Do Labor Market Institutions Influence the Preference to Work in Family Firms? A Multilevel Analysis Across 40 Countries

Family firms must attract talented employees to stay competitive. They have different employer characteristics than nonfamily firms. For example, although they generally offer lower wages, they also typically offer higher job security and a more cooperative and entrepreneurial work environment. However, drawing on occupational choice theory, we argue that the importance of these unique family firm characteristics depends on the national labor market context in which the family firm is embedded. A multilevel investigation of 12,746 individuals in 40 countries shows that individuals prefer to work in family firms in labor markets with flexible unregulated hiring and firing practices, centralized wage determination, and low labor–employer cooperation. A cross-level analysis further shows that the national labor market context moderates the effects of individual-level factors determining the preference to work in a family firm (e.g., entrepreneurship intention). Our article is the first to consider labor market institutions in research on family firms as employers. Practical implications exist for family firms regarding their employer branding and intrapreneurship strategies.

An analysis of wage determinants of college professors in Korea

An analysis of wage determinants of college professors in Korea

The Gender Wage Gap in the Tourism Industry: Evidence from Australia

This article presents an examination of the gender wage gap among tourism and hospitality employees in Australia. Data from the household, Income and Labour Dynamics in Australia (hILDA) Survey—covering the period 2001 to 2014—are used to estimate earnings functions for prime age (25–54) male and female workers. Conventional human capital functions are estimated using a random-effects regression model. The principal findings suggest that, after controlling for an extensive range of sociodemographic characteristics, female tourism and hospitality employees, on average, earned 8.5% and 7.5%, respectively, less than their male counterparts. Although human capital variables like education and work experience play a role in the determination of wages, an employee's gender still continues to be a significant factor in the wage received.