Wage Earners Research Articles

Unveiling social disparities in employment and wages: a labour market segmentation analysis of India’s IT industry

PurposeThis study investigates the caste-based disparities in employment probabilities and wage earnings within India’s rapidly growing IT industry, using insights from the labour market segmentation theory. Our theoretical conceptualization attempts to pin down the inaccessibility of marginalised sections of the population to the high productivity job market.Design/methodology/approachWe rely on the National Sample Survey rounds of 2011–2012 and 2020–2021 to estimate employment probabilities and wage differentials using linear and logic regression models, controlling for educational attainments and other important determinants of individual’s job market outcomes.FindingsThe results indicate a significant −1.24 odds differential, even after considering education and other control variables. Notably, this disparity has increased since 2011–2012, with lower caste graduate pass-outs facing a mere 13% probability of IT sector employment compared to their upper caste counterparts at 41%. Further, our findings expose gender and rural-urban differentials, highlighting the vulnerability faced by females and individuals from rural areas. The wage analysis shows a 24% and a 22% earning gap for SCs and OBCs, respectively, which remain statistically significant even after controlling for educational attainments and employment arrangements.Originality/valueThis is first micro-level study that counters Indian IT sector’s claim of “castelessness” and “pro-merit”, identifying significant presence of labour market segmentation in the sector. The caste-based labour market segmentation has far-reaching consequences as it can perpetuate income inequalities and hurt industrial efficiency, stifling economic growth in the long-run. Concerted policy responses are imperative to eliminate structural barriers, ensuring equitable access to quality education and employment opportunities for marginalized sections of the society.

Who they are, and what they do: perspectives on work–life balance among entrepreneurs and wage earners

Work–life balance (WLB) remains a pressing challenge in today’s fast-paced society. The current study addresses this prominent issue by examining whether employment type and individual characteristics shape perceptions of WLB among entrepreneurs and wage earners in Trinidad and Tobago. A structured survey was administered to a sample of entrepreneurs and wage earners and responses (n = 364) were statistically analysed to determine the main and interaction effects of employment type, age, ethnicity, relationship status, and sex on perceived WLB. Perceptions of WLB were lower among wage earners, though the observed differences were nonsignificant. Age and ethnicity emerged as significant main predictors of perceived WLB, with older persons and those of mixed ethnic backgrounds reporting higher levels of WLB. These main effects were moderated by the presence of a three-way interaction effect (sex × ethnicity × employment type) at p = 0.001. Our findings suggest that WLB is an intricate phenomenon that is not exclusively dependent on the occupational form, nor on an individual’s demographic composition but rather derived from the complex interactions between these two categories of variables. Thus, while entrepreneurship and wage employment both have the potential to improve standard of living, engaging in one type of employment versus the other may have an enhancing or diminishing effect on WLB based on life stages, ethnic affiliations and, possibly, other personal factors. This study’s findings also point to a need for more family-friendly policies and family-supportive working environments in Trinidad and Tobago. Though we move the field forward by addressing a critical gap in the literature, the explanatory variables tested in this study accounted for only 33.5% of the variance in the respondents’ WLB scores. We offer suggestions to overcome this limitation and others so that future studies can produce more nuanced and generalizable causal inferences.

Financial Toxicity Among Patients With Advanced Solid Tumors Participating in Early-Phase Clinical Trials.

Financial toxicity (FT) adversely influences patient quality of life and is a barrier to clinical trial enrollment. Early-phase clinical trials (EPCTs) recruit patients who may have high baseline FT and require additional visits and procedures, potentially increasing FT. In this prospective survey study, we sought to assess FT at baseline and after 2 months among patients with advanced solid malignancies participating in EPCTs. Participants were age 18 years and older, were English-speaking, and were treated at the Yale Cancer Center (Yale) and the Tisch Cancer Institute at Mount Sinai (Mount Sinai). At the time of consent and 2 months later, patients completed a sociodemographic questionnaire as well as the 11-item validated Comprehensive Score for Financial Toxicity (COST) instrument. Primary outcomes were baseline COST score and change in COST score from baseline to 2 months. Lower score is associated with higher FT. One hundred forty-six patients completed survey 1. Mean age was 61.5 years and 50.7% were male. The most common histologies were lung (17.8%), colorectal (16.4%), and breast (12.3%) cancers. Mean baseline COST score was 22.12 (standard deviation, 8.01). FT was associated with being a primary wage earner (P = .044) and inversely associated with age (P = .025). Seventy-one patients completed survey 2. Among 71 patients who completed both surveys, there was no significant difference in COST score between surveys 1 and 2 (P = .28). Race, ethnicity, education, and household income were not associated with baseline COST score or change in FT. Moderate FT was reported at baseline and on trial among EPCT participants. No change in FT was observed between time points. Additional efforts should be made to decrease FT associated with EPCT participation to maximize access to novel therapies.

Does giving tax debtors a break improve compliance and income? Evidence from quasi‐random assignment of IRS Revenue Officers

AbstractThis paper uses the quasi‐random assignment of IRS Revenue Officers to tax debtors' cases as an instrumental variable to identify the causal effects of suspending debt collection on tax compliance and future income. In contrast to uninstrumented estimates, we find no statistically significant evidence that putting off attempts to collect debt reduces compliance with future tax obligations or future reported income. Among marginal hardship cases, pausing collection instead increases future income, specifically wage earnings by the taxpayer's spouse. In addition, we address concerns about potential non‐random assignment of Revenue Officers.

Optimal investment, consumption, and life insurance decisions for households with consumption habits under the health shock risk

. This article investigates the optimal investment, consumption, and life insurance strategies for households under the impact of health shock risk. Considering the uncertainty of the future health status of family members, a non homogeneous Markov process is used to model the health status of the wage earner. Drawing upon the theory of habit formation, we investigate the influence of different consumption habits on households’ investment, consumption, and life insurance strategies. Based on whether the wage earner is alive or not, we formulate and solve the corresponding Hamilton-Jacobi-Bellman (HJB) equations for the two scenarios of wage earner survival and wage earner’s demise, respectively, and obtain explicit expressions for the optimal investment, consumption, and life insurance strategies of households. Through sensitivity analysis of important parameters, it has been shown that the presence of health shocks within households has a negative impact on investment and consumption decisions, while the formation of consumption habits increases household propensity for precautionary savings.

Consortia under the OHADA Law and the interest of wage earners

Abstract The economic development of commercial companies, matched with the desire to modernize the size and structure of commercial companies and business units, is manifested by the multiplication of branches and the creation of subsidiaries, which leads to the creation and the multiplication of consortia. This may be a plus for the business world, but, for the wage earners, it is mostly characterized by the disregard of their interest. The aim of this article is to show the legal apprehension of the situation of wage earners in a consortium under OHADA law. What are the mechanisms put in place by the law to remedy the unpleasant legal situation of wage earners in the consortium? In conceiving the possibility for commercial companies to come together through various ties to form an entity called a consortium, the OHADA Treaty had to see in which way the interests of those who play a major role (wage earners) for the development of such companies will be safeguarded. This article has a double interest: socio-moral interest and a scientific interest—socio-moral interest, in that it tries to examine how the interest of wage earners, which is mainly alimentary and will not be abandoned in favour of capital interest; and a scientific interest as it endeavours to reconcile the application of two rules of law: that of company law and of labour law.

A Qualitative Study on the Tax Amnesty Perception of Income Taxpayers: The Case of Türkiye

Tax amnesty, which is not regulated in the Tax Procedure Law, has been implemented from time to time since 1924. Tax amnesty, which is seen as an urgent source of income for governments, can have positive or negative consequences for taxpayers. It is understood from the literature that the opinions on tax amnesty practices are divided into two as positive and negative and that there is no full consensus on the subject. The study aims to concretize the theory with a qualitative analysis of the participant opinions covering five different types of taxpayers subject to income tax. For this purpose, content analysis was used in the qualitative study and for this analysis, semi-structured interviews were conducted with five groups of taxpayers subject to income tax (commercial, agricultural, self-employment income, real estate capital income, wage earners) and the results were analyzed with the QSR Nvivo program. Although the analysis results do not present surprising results, they concretely reveal the opinions of income taxpayers on tax amnesty through direct quotations. The results showed that tax amnesties frequently implemented by governments cause taxpayers to expect a new amnesty and cause tax compliance to deteriorate, and are perceived as unfair and unjust by taxpayers who fulfill their tax obligations. In this sense, it was revealed from the qualitative analysis results that taxpayer opinions support the negative view in the theory and literature on tax amnesty practices, but they may accept tax amnesty to revive the economy during or after economic, political or financial crises. In addition to contributing to the literature by focusing on taxpayer opinions in order to concretize the views in the theory and literature on tax amnesty, the qualitative study also draws attention to the need for tax policies to be implemented for a more equitable application of tax amnesties perceived as unjust and offers suggestions.

Two birds, one stone: minimum wage and child labor

PurposeThis paper investigates the impact of quasi-exogenous and substantial increases in the minimum wage on child labor outcomes in Türkiye. The study aims to provide empirical evidence on how minimum wage policies affect child labor outcomes in a developing country context, with a focus on gender and age differences. It seeks to understand whether minimum wage increases lead to a reduction in child labor and whether the impact is different for various demographic groups.Design/methodology/approachThe research employs a difference-in-differences methodology using data from the 2012 and 2019 Child Labor Force Survey in Türkiye. The treatment group consists of children from households with minimum wage earners, while the control group comprises children from other households. Various labor market outcomes are analyzed, and robustness checks are performed.FindingsOur findings indicate that while the overall effect of minimum wage increases on child labor is statistically insignificant, there are notable heterogeneous impacts across different demographic groups and employment sectors. Specifically, we observe a significant reduction in the employment probability of girls under the age of 15 and unpaid family workers. Additionally, the likelihood of younger children being wage earners decreases, and the minimum wage increase reduces employment in the agriculture and services sectors for certain subgroups. The impact is also more limited for children in single-adult-worker households.Social implicationsThese results underscore the varying effects of minimum wage policies on child labor and highlight the importance of considering demographic and sectoral differences in policy formulation. Policymakers should complement such policies with income-generating programs and targeted education initiatives to address child labor issues more comprehensively and sustainably.Originality/valueThis study fills a critical gap in the limited international literature on the causal effects of minimum wage policies on child labor incidence. One notable exception, Menon and van der Meulen Rodgers (2018) have explored the impact of minimum wage on child labor in India using regional variation, our study uniquely analyzes the effects at the household level in Türkiye. This approach provides valuable insights into how minimum wage changes affect child labor outcomes in a developing economy context with a high prevalence of minimum wage earners. It also contributes to the broader economic understanding of child labor and household income dynamics.

EU-induced financialisation and its impact on the Greek wage share, 1999–2021

This paper examines the determinants of the income share of wage earners in the non-financial, private sectors of Greece since its introduction to the Eurozone in 1999. The main outcome of the integration of Greece into the Eurozone has been the financialisation of its economy, which has been particularly influential for households since it led to the rapid rise of household indebtedness. Building on recent research which shows that financialisation shape wage bargaining outcomes, we use quarterly data from the Eurostat and demonstrate that the relative size of the FIRE sectors and the increase in household debt have been negative drivers of the wage share in Greece over the last 22 years. Our findings also suggest that the employment-tied social benefits system and tertiary education provision have also been important determinants of workers’ income share.

EMPIRICAL ESTIMATION OF THE POTENTIAL ECONOMIC IMPACT OF TOURISM PROMOTION POLICY IN ALGERIA

Objective: The objective of this paper is to empirically assess the economic impact of tourism promotion policies in Algeria. By utilizing an economic model based on the 2021 Social Accounting Matrix (SAM) multipliers, the study aims to quantify the direct, indirect, and induced effects of increased tourism demand on various sectors of the national economy. Specifically, the research seeks to evaluate how tourism expenditure influences production, sectoral output, and income distribution, while also identifying which sectors and economic agents benefit the most from tourism growth. Theoretical Framework: Study is based on the Social Accounting Matrix (SAM) approach, which examines the interconnections between sectors of the economy and tracks the flow of income and expenditure. It incorporates input-output theory to measure the direct, indirect, and induced effects of increased tourism demand. The concept of economic multipliers is central, highlighting how tourism spending influences various sectors. Additionally, the framework assesses the distribution of benefits across different economic agents, focusing on how tourism impacts production, sectoral output, and income distribution in Algeria. Method: This study uses 2021 Social Accounting Matrix (SAM) data to analyze tourism demand in Algeria. It develops an economic model, simulates scenarios, and assesses the economic gains and distribution of benefits, providing a comprehensive evaluation. Results and Discussion: The SAM-based economic model shows that Algeria's tourism demand boosts production and output across sectors, particularly agriculture, hospitality, agri-food, construction, transportation, and energy. However, the benefits are not evenly distributed, potentially leading to income inequality. Policy interventions should focus on equitable income distribution and supporting key industries. Research Implications: Tourism can drive Algeria's economic diversification, reducing dependence on traditional sectors. Inclusive tourism policies are needed to ensure equitable benefits for wage earners and lower-income groups. Future research should focus on sector investment and employment effects. Originality/Value: This study analyzes the economic impacts of tourism promotion policies in Algeria, focusing on the 2021 Social Accounting Matrix. It provides insights into the distribution of benefits and emphasizes the need for inclusive policies. The findings provide actionable insights for policy development.

Social conditions impact functional outcome in patients with hand osteoarthritis: the low-income hand osteoarthritis (LIHOA) cohort

BackgroundHand osteoarthritis (HOA) is a highly prevalent disease that may be impacted by social inequalities. Few studies in HOA are from underdeveloped regions. We intend to contribute to fill this gap presenting clinical characteristics of our low-income HOA cohort (LIHOA).MethodsData from 119 patients with a HOA diagnosis fulfilling ACR criteria seen between August 2019 and May 2023 in Fortaleza/Brazil. Evaluations included pain (VAS, visual analogue scale), X-ray (KL, Kellgren-Lawrence), grip and pinch strength (KgF), Cochin hand functional scale (CHFS), FIHOA, and SF-12 scores. Social data included monthly (<1, 1≥/<3, ≥3 MW) minimum wage earnings, occupation, and literacy [</≥ 9 school-years (SY)].Results107 out of the 119 patients were included. Mean age was 61.9 (±10.3) years with 94 (92%) women. Systemic arterial hypertension (48%), metabolic syndrome (42.8%), dyslipidemia (28.4%), and obesity (25%) were the most common comorbidities. Mean disease duration was 7.5 ± 7.1 years. Median VAS values at rest and activity were 3 (3–5) and 8 (5–9), respectively (p < 0.001). Fifty-seven (56.4%) patients had ≥4 symptomatic joints with a median of 4 (2–8) painful joints at activity. The 2nd distal interphalangeal (IF), joint was the most symptomatic (21; 23.3%) and most had >4 IF nodes. OA in other joints: 37 (36.2%) spine, 28 (29.4%) knee, 21 (20.5%) bunions. Functional impairment was mild [8 (5–14) median FIHOA]. Median serum CRP was 0.2 mg/dL (0.1–0.4) with 14 (20%) patients above reference value. Mean total KL score was 27.6 ± 13.6 with 21 (23%), 38 (41.7%), and 33 (36.2%) KL2, KL3, and KL4, respectively; 51 (54.8%) and 42 (45.2%) patients declared </≥3 MW earnings, respectively. Most declared >9SY including 37.2% with a university degree. Individuals earning <3 MW had lower pinch (p < 0.004) and grip strength (p < 0.01), and higher FIHOA scores (p < 0.007), as compared to ≥3 MW earning group. Literacy or occupation did not impact outcome. SYSADOA were used by 13 (12.7%), 6 used oral and 3 topical anti-inflammatory drugs and 2 used 5 mg/d prednisone.ConclusionClinical characteristics in our LIHOA cohort mirror those reported in affluent regions. Socioeconomic disparities influenced functional outcome in LIHOA cohort.

Unemployment insurance for the self-employed: A conceptual way forward

In this contribution we give common guidelines on how unemployment schemes for the self-employed could be developed in practice. These guidelines have been derived from national descriptions contained in this special edition on unemployment protection for the self-employed, or in other recent comparative contributions on the matter. Our reference framework is the EU Council Recommendation (2019) on Access to Social Protection, and more in particular the overall objective that social protection should be designed in a labour status neutral manner and, where necessary, adapted to the specific work situation of the professional groups covered. Applied to unemployment, the design of the scheme should be as similar as possible to that of unemployment insurance for wage earners. However, it is crucial to adapt the rules as specifically as necessary to the nature of self-employed work, such as, for example, the fact that the self-employed do not work for an employer. Starting from this basis, we developed key rules with regard to unemployment schemes for the self-employed. We did so by addressing the essential components of unemployment schemes: the definition of the unemployment risk, financing, access and entitlement conditions, and re-eligibility in case of repeated claims for unemployment benefits. We also address recent evolutions in the labour market, such as coverage when multiple activities are performed (combining activities as an employee and as a self-employed person), and elaborate on situations involving temporary closure of the self-employed activity (e.g. due to Covid-19) and partial unemployment. In conclusion, we provide some reflections on the apparent ongoing evolution of the risk of unemployment towards a broader income protection scheme, which not only provides income replacement in case of a final loss of professional activity or self-employed business, but also gives structural income support if the person loses income partially due to external economic and/or social reasons.

Forgotten Family: The Influence of Women and Children on the Nexus of Wage Earning and Demographic Change in England, 1260–1860

E. A. Wrigley identified the responsiveness of nuptiality and marital fertility to changes in male wages. Others have theorized the importance of women's decision-making in the timing of marriage, but without much empirical evidence. Combining new long-run series of annual wages for men, for married and single women, and for children with existing demographic data, the influence of women and children's remuneration on household formation is investigated. Women played a key role in the functioning of early modern preventive checks. High wages encouraged single women to delay marriage, reducing marital fertility. This counterbalanced the encouragement of nuptiality stimulated by high male earnings, which helped balance population and economic growth. Juvenile earnings had little influence on family formation, challenging links suggested in accounts of protoindustrialization or proletarianization. Demographic evidence suggests that economic circumstances contributed to the timing of medieval marriage, but poverty more often than prosperity prompted celibacy.

Life-cycle planning with CEV model and time-inconsistent preferences

In this paper, we investigate an optimization problem for a wage earner seeking to maximize expected utilities until retirement by choosing optimal consumption, investment, and life insurance purchase strategies. The constant elasticity of variance (CEV) model is adopted to describe the price process of the risky asset. Additionally, we assume that the wage earner has time-inconsistent preferences. This makes the wage earner discount her payoff by a non-constant discount rate. Applying the dynamic programming principle, we have derived the Hamilton-Jacobi-Bellman (HJB) equation corresponding to the optimization problem. Furthermore, we present semi-analytical expressions for optimal strategies and value functions in three cases: the benchmark model with time-consistent preferences, the naive and sophisticated wage earners with time-inconsistent preferences. Finally, illustrations of the optimal solutions and some economic insights are provided in the numerical examples.

Assessing impacts of income diversification on Vietnamese household welfare using quantile regression and longitudinal data

ABSTRACT This study examines the heterogeneous and dynamic effects of income diversification on Vietnamese household welfare measured by total income and consumption expenditure. Based on a risk management perspective and prior studies, households with different income levels may have different income diversification strategies. In the analysis, we use quantile regression for both pooled and cross-sectional data across regions. The effects from Simpson’s diversity index, as the measure of income diversification, show mixed results. During the early period of study, income diversification raised the welfare of most households. However, the trend was reversed in the later period. This generates concern for low-income households and their income sources are less diversified. For higher-income households, the adverse effects are due to their focus on fewer economic activities, with wage earnings being their main source of income.

The wind of no change: union effects on partisan preferences and the working-class metamorphosis

Focusing on Germany and the United Kingdom as two most dissimilar cases in terms of labour market and political institutions, the article examines the impact of trade union membership on partisan preferences. Leveraging panel data to control for time-invariant selection effects shows that trade unions exert a small but consistent left-wing influence on wage earners who become affiliated, but they are no longer able to modify the preferences of working-class members. A longitudinal approach reveals that unions mainly attract individuals who already share the unions’ political inclinations before joining. The additional shift to the left experienced by already left-leaning new members is consistent with a value congruence mechanism triggered by interactions with even more left-leaning long-term union members. Symmetrically, working-class joiners exhibit less pronounced left-wing inclinations before becoming affiliated, a gap that widens further after they join. These findings imply that unions’ political influence and class allegiances have been both eroded and altered by changes in the labour market and political landscape.

High speed broadband and the employment quality of rural migrant workers in China

With the increasing progress of information and communication technology, the employment quality of the rural migrant population is an important yet less-investigated issue related to rural revitalisation in China. Using data from the China Migrants Dynamic Survey, this paper examines the effect of the broadband speed increase on the employment quality of these migrant workers. We explore the effects of the ‘faster speed and lower rates’ policy implemented around 2015 and the variations in remote work flexibility across industries for model identification and causal inference. Results show that the upgrading of broadband and mobile internet services improves the wage rate and reduces overtime work. At the same time, such policy increases the proportion of wage earners and reduces the proportion of the self-employed, which suggests the potential improvement in working stability. After excluding other mechanisms, the flexibility of working modes appears to be an important channel to explain the findings. In specific, the comprehensive index of employment quality increases by 0.49% for each standard deviation increment in the remote working index. The estimates are larger among the younger, female, and more educated population.

Optimal portfolio and insurance strategy with biometric risks, habit formation and smooth ambiguity

This paper studies the optimal consumption, investment, health insurance and life insurance strategy for a wage earner with smooth ambiguity, habit formation and biometric risks. The individual can invest in the financial market composed of a risk-free asset and a risky asset whose unknown market price results in ambiguity. The habit formation depends on historical consumption and satisfies an ordinary differential equation. Moreover, the biometric risks, which consist of health shock risk and mortality risk, can impact the individual's income and health state. The individual can purchase health insurance and life insurance to respectively deal with health shock risk and mortality risk, and aims at maximizing the total expected utility of consumption, legacy and terminal wealth. Using the dynamic programming technique, we derive the corresponding Hamilton-Jacobi-Bellman equation in the states of health and critical illness respectively, prove the verification theorem and obtain closed-form solutions for the optimal strategies. Finally, numerical experiments are carried out to illustrate the impact of risk aversion, ambiguity aversion, health shock and habit formation on the optimal strategy. The results reveal that the wage earner with different utility functions and different health states will show different behaviors in consumption, investment and insurance purchase.

Top income inequality and tax policy

Abstract The share of pre-tax income flowing to the top of the UK income distribution increased continually and substantially in the three decades leading up to the financial crisis, but has changed little since 2013. Using microdata sampled from UK tax records, we describe the nature of top incomes in the UK and how they are taxed. We show that wage income is the dominant source of pre-tax income, even for highest-income 0.1% of UK adults. However, ‘active’ business income—derived from self-employment or closely-held incorporated businesses—is considerably more important for the top 1% than for those with lower incomes. High-income wage earners work disproportionately in financial services. The high-income self-employed are predominately working in partnerships in professions such as accountancy and legal services. Overall, UK income taxes are progressive: average tax rates rise with income. Taxes on top incomes have been increased since 2010, with the result that the post-tax share of income flowing to the top has fallen. But average tax rates vary significantly within the top and depend on how income is received. Incomes from business ownership and investment are taxed at lower rates than employment income. We discuss options for reforming the taxation of top incomes.

Monetary Policy and Income Distribution: The Post-Keynesian and Sraffian Perspectives

ABSTRACT This paper examines the post-Keynesian and Sraffian perspectives on the relationship between monetary policy and income distribution, highlighting their endogenous demand-led money approach and rejection of the neutrality of interest rates, and monetary policy as tool of redistribution among social classes. Both approaches acknowledge that the central bank can influence interest rates and hence, the functional distribution of income. These shared ideas recognize the political nature of interest rates and the distributive impacts of monetary policy. Although all are crucial common points, some differences persist; PK theory often emphasizes the impact of monetary policy on rentiers vs. non-rentier classes, while Sraffians focus more on wage earners vs. non-wage earners. Further, while PK theorists advocate for alternative monetary policy rules, Sraffians favor discretionary policy tailored to each economy's unique institutional framework. The paper concludes by suggesting that these shared critical conceptions, despite minor differences, should stimulate collaborative efforts to further develop heterodox theories of monetary policy and income distribution.