Wage Employment Research Articles

Does drought increase intimate partner violence? Evidence from India

India has a high prevalence of intimate partner violence (IPV) against women. IPV has been observed to increase during natural disasters. Many studies have attempted to unravel the effect of drought on IPV; however, the evidence remains mixed. There is a gap in such studies in the Indian context, and this study seeks to fill this gap. We used data from the National Family Health Survey-4 (NFHS-4) (2015 – 2016) and NFHS-5 (2019 – 2021) to examine the effect of drought caused by the failure of the northeastern monsoon (NEM) in 2016 – 2018. Our analysis included data from 19 states and Union Territories of India (N = 34,590) in a difference-in-differences setup to evaluate the effect of the NEM drought on IPV. Exposure to the NEM drought was positively associated with physical violence (PV) and emotional violence, with results significant at the 95% and 99% confidence levels, respectively. A subsample analysis of rural and urban populations revealed that drought is significantly associated with an increase in sexual violence in urban areas, whereas it correlates with PV in rural areas. Additionally, exposure to drought is linked to a considerable rise in the controlling behavior of partners, for example, “He (is/was) jealous or angry if you (talk/talked) to other men,” “he (does/did) not permit you to meet your female friends).” These findings call for a two-fold policy action: providing support in the form of wage employment programs, subsidies, and other financial assistance during drought periods to help households cope with financial stress and implementing awareness programs aimed at changing partners’ mindsets, thereby reducing controlling behaviors in marriages.

The impact of a minimum wage increase on hours worked: heterogeneous effects by gender and sector

AbstractA minimum wage increase could lead to adverse employment effects for certain subgroups of minimum wage workers, while leaving others unaffected. This heterogeneity could be overlooked in studies that examine the overall population of minimum wage workers. In this paper, we test for heterogeneous effects of a minimum wage increase on the hours worked of minimum wage employees in Ireland. For all minimum wage workers, we find that a 10% increase in the minimum wage leads to a one‐hour reduction in weekly hours worked, equating to an hours elasticity of approximately −0.3. However, for industry workers and those in the accommodation & food sector, the impact is larger, with elasticity −0.8. We also find a negative impact on the hours worked among men on minimum wage, with no significant effect for women. This is due to the disproportionate number of men working in sectors that show the greatest impact on hours. In line with suggestions from the recent literature, we attempt to identify directly those in receipt of minimum wage using hourly wage data, while also studying the dynamic impact on hours worked over multiple time periods using a fully flexible difference‐in‐differences estimator.

Improvement of Productivity by Using Means of Lean Manufacturing, Just in Time, and Production Technology in Thai SMEs Manufacturing Industry

This study investigated the current situations, opportunities, and obstacles in manufacturing industry, and to create a model for improving the efficiency while reducing the levels of inventory. This study gathered information from in-depth interview using snowball sampling from 20 manufacturing companies in Thailand. The results revealed that the organization has implemented lean production principles as a strategic initiative to mitigate losses. The implementation of comprehensive work manuals, offered in diverse languages such as Thai, Burmese, Japanese, and English, serves as an additional mechanism to mitigate losses by ensuring clarity and understanding among the workforce. Furthermore, the integration of modern technologies, encompassing machine technology, robotics and artificial intelligence, is actively pursued to streamline production processes and consequently reduce losses. The results presented that companies refrain from adopting Just-In-Time production systems due to operational challenges associated with fulfilling customer orders. Specifically, frequent machine shutdowns for adjustments are necessitated, leading to elevated unit costs. Manufacturing companies in Thailand continue to harbor potential for growth, despite the inevitable rise in employee wages leading to increased operational costs. To navigate this challenging landscape, companies must remain adaptive, responding not only to shifts in customer preferences but also to advancements in technology, proactive examination of customer needs prior to initiating the production process, a paradigm shift from low-cost production to the premium-grade products addresses the demands of customers seeking superior product quality, and the process of broadening customer bases both overseas and globally, and the analysis of distinct customer groups in identifying new target demographics.

Do creative companies pay higher wages? Micro-level evidence from Bangladesh

The study investigates the correlation between research and development (R&D) and training and development (T&D) investments in creative companies in Bangladesh. It aims to understand the economic benefits of fostering a creative corporate environment, as well as its impact on employee wages. We collected data from a sample of companies in Bangladesh, which included expenditures and employee wages. We used multiple regression models to control for potential confounding factors. The findings reveal a positive correlation between R&D investments and employee wages. Companies that allocate more resources to R&D tend to pay higher wages due to the development of new products and processes, enhanced employees' skills, and the attraction of talented and skilled employees. T&D investments also lead to increased productivity and efficiency, which in turn boosts the company's financial performance. Additionally, T&D can improve employee morale and job satisfaction, leading to lower turnover rates and a more stable workforce.. Keywords: Bangladesh, Creative companies, Employee wages, Higher wages, R&D and T&D, Development, Investments.

Study on Development of RSETI Training Programme at South Andaman district of Andaman and Nicobar Islands

The first and foremost important problem in today’s generation and economy is lack of financial literacy. The financial literacy towards entrepreneurship intention of rural youths of South Andaman District of Andaman and Nicobar Islands are studied here. The Rural self-employment training Institute are working on several districts of India and they are provided with these programmes to improve the entrepreneurial intention and financial literacy among the rural youths. This study is intended to know the influence of these programmes on entrepreneurship and its inception of skill in their respective fields and role of RSETI in supporting the trained candidates in settlement. Rural self-employment training institute (RSETI) is a replicated model of rural development and self-employment training Institute (RUDSETI) and a unique initiative which ids not only imparts training to the rural youths for different economic activities but also extends the supports to beneficiaries to settle though self-employments by providing credit linkage to the beneficiaries. The data was collected through primary and secondary data sources. The data taken from the beneficiaries who took training during last eight years and were engaged different entrepreneurial activities. Findings of this study states that 75% of them (cumulative) are new self-proud to be as successful entrepreneur. This year i.e., (2019-20) 489 candidates have been trained and majority of them i.e., 71% and above settled through bank finance/ wage employment.

Employer cooperation, productivity and wages: new evidence from inter‐firm formal network agreements

AbstractUsing uniquely rich administrative matched employer–employee data for Italy from 2008 to 2018, we investigate the impact of firms' formal network agreements (FNAs) on firm performance and employee wages. We find an overall significant and economically relevant positive effect of FNAs on various measures of firm performance, but there are no tangible benefits for the workers, and wages decrease slightly, on average. There is, however, marked heterogeneity in the impact on both firms and workers. Estimated rent‐sharing equations, as well as other tests that exploit unionization data, suggest that the negative effects on wages can be explained by a decrease in workers' bargaining power following the introduction of FNAs.

Impact of Mgnrega on Employment Generation in Karnataka

This study examines the impact of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on employment generation in Karnataka. Using secondary data from official websites, the research highlights MGNREGA's significant role in providing wage employment and enhancing livelihood security for rural households. As of September 2024, over 80 lakh job cards have been issued, with a high employment fulfillment rate exceeding 98%. The program actively supports marginalized communities, with 18.15% of workers from Scheduled Castes and 10.71% from Scheduled Tribes. Overall, MGNREGA is a crucial mechanism for economic stability and poverty alleviation in rural Karnataka.

The Role of NGOS in Promoting Women Entrepreneurship in India

In recent times, the government has realized the importance of entrepreneurship as a prominent alternative to traditional wage employment in the new economy, and its role in increasing the pace of economic growth. Therefore, Indian government has come up with various special policy measures to help women entrepreneurs. there are major limitations among women entrepreneurs in accessing those facilities. These limitations arise due to various factors, such as: lack of awareness, lack of information, difficulty in accessibility of finance, lack of easy access of entrepreneurial training and post training support, lack of market and network support, lack of self-confidence and managerial skills, bureaucratic hassles, lack of transportation mainly in remote areas, restriction of government officials in terms of timing when women also have to perform household activities etc.

The contribution of employer changes to aggregate wage mobility

Abstract Wage mobility reduces the persistence of wage inequality. We develop a framework to quantify the contribution of employer-to-employer movers to aggregate wage mobility. Using three decades of German social security data, we find that inequality increased while aggregate wage mobility decreased. Employer-to-employer movers exhibit higher wage mobility, mainly due to changes in employer wage premia at job change. The massive structural changes following German unification temporarily led to a high number of movers, which in turn boosted aggregate wage mobility. Wage mobility is much lower at the bottom of the wage distribution, and the decline in aggregate wage mobility since the 1980s is concentrated there. The overall decline can be mostly attributed to a reduction in wage mobility per mover, which is due to a compositional shift toward lower-wage movers.

Household’s Characteristics and Learning Poverty: An Empirical Study

‘Learning poverty’ among school students is a cause of concern. Studies of family effects on students’ learning outcomes in the context of North-eastern region of India and Meghalaya are significantly lacking. The present study is about ‘learning poverty’ and its relationship with household characteristics such as household-income, parents’ educational level, parents’ occupation, nature of residence and number of siblings in the context of the Khasi–Jantia tribes of Meghalaya, which follows a matrilineal system. From the field experiment conducted on 407 students of classes 9 and 10 from 15 randomly selected schools from Shillong and Jowai towns, the findings indicate that ‘learning poverty’ is significantly higher in proportion for students belonging to the lower household-income groups. Besides low household-income, low level of parents’ education, not having and staying in one’s own house, higher number of siblings and parents’ occupation in low-end wage employment have emerged as critical factors responsible for the presence of ‘learning poverty’. The study recommends that policymakers and school management consider family effects seriously and work with parents from poor households to improve learning outcomes, mitigating the menace of ‘learning poverty’ on the society. However, the results of the study need to be examined with one caveat that it has not taken into consideration the school effects, which could too impact learning outcomes. JEL Codes: I240, I250, I210

Wage employment, unemployment and self-employment across countries

Poor countries have low wage employment and high self-employment. This paper shows that they also have high unemployment relative to wage employment, and that self-employment increases with this ratio. To understand the sources of these patterns, I build a search and matching model with choice between job search and self-employment and with learning about matches, and calibrate it to match all transition rates between wage employment, unemployment and self-employment as well as separation hazards by job duration, separately for all 37 countries with available data. Quantitative analysis of the model shows that labor market frictions affect self-employment as much as unemployment. Labor market frictions also reduce aggregate output, not only by raising unemployment, but also by worsening the average quality of both wage employment matches and active self-employment projects.

Understanding the complexities of technological penetration and globalisation on labour market performance: The role of complementary policies

Understanding the impact of technological penetration and globalisation on wage differentials and employment is crucial for developing countries aiming for sustainable economic growth and reduced unemployment rates. This study investigates these effects in the Southern African Development Community. It also examines the role of complementary policies, such as financial development and human capital, and their interactive effects with technological penetration on wages and employment. The study employs panel fully modified least squares, dynamic least squares, and Driscoll-Kraay's standard error as a robustness check. Results indicate that technological penetration, financial development, and the interactive effect of human capital and technological penetration negatively affect employment. Conversely, globalisation and the interactive effect of financial development and technological penetration positively influence employment. Technological penetration is insignificant in the wage equation, while human capital, globalisation, and financial development are associated with wage increases. The interactive effect of technological penetration and human capital is not significant, and the interactive effect of financial development and technological penetration negatively impacts wages. Based on the findings, the study recommends enhancing financial development and human capital while carefully managing technological integration to navigate the complexities of technological and global economic integration to maximise employment and wage benefits.

Does the environmental tax affect the within-firm pay gap? Evidence from China

The impact of the environmental tax on internal income distribution within firms is a crucial extension for evaluating the economic effects of environmental regulation policies. However, the existing literature focuses primarily on environmental effects and the Porter hypothesis, giving little attention to this topic. Using data from Chinese A-share listed companies from 2018 to 2021, we examine how the Chinese environmental protection tax affects intrafirm wage disparities. Our findings indicate that the environmental tax widens the pay gap between managerial and ordinary employees. Mechanism tests show that the environmental tax's governance effect raises managerial compensation levels, whereas cost effects decrease wages for ordinary employees. This effect is particularly pronounced in nonstate-owned firms, competitive industries, and regions with stricter environmental tax collection standards. This study makes an empirical contribution to our understanding of the effects of the environmental tax on income distribution in practice.

Do Firm Profits Adversely Impact Wage Growth and Employment Generation: Evidence from Firm-Level Data in India

With growth in the economy examining how much of the increase in net profit margins of firms translates into growth in wages and employment is useful for gaining insights on local income equalities. Using the firm data for the period 2011–2021, this study probes the trend of growth in wage cost and employment in firms belonging to different sectors in India. As the data collected vividly depicts inequality in wages and employment provided by firms in different sectors of the economy, a panel data analysis is done for different sectors of the Indian economy. The study finds evidence of inequality in the transfer of firm profits into wage and employment growth despite sectoral revenue and ownership status positively affecting wage growth as well as negative association of employment growth with private ownership. The findings of this study have policy implications for both firms and policymakers in both emerging economies as well as developed countries.

Gendered impacts of COVID-19 in agri-food system and recovery pathways in India: A systematic review

The agricultural sector, essential for food security and economic stability, especially in developing countries such as India, faced significant disruption during the COVID-19 pandemic. Impacts included labour shortages, limited market access, disrupted supply chains and wasted perishable goods due to mobility restrictions. While many studies have addressed these effects in India, a conspicuous gap remains in understanding how gender dynamics intensify these vulnerabilities within the country. This review synthesises findings from 32 studies, shedding light on the intersection of gender and the pandemic's influence on India's agri-food system. Results revealed a noticeable underrepresentation of gender-centric research on COVID-19's agricultural impacts in India, with many studies being geographically limited. When gender was considered, few critically examined it as a socially constructed role, often reducing it to a mere variable. Women farmers, constrained by societal norms like lack of land rights and limited access to resources, endured more pronounced negative effects. Their participation in wage employment dropped, and household food security dwindled. Furthermore, women in India faced augmented domestic burdens, heightened domestic violence risks and health challenges. Notably absent from current research is a focus on the long-term economic recuperation of rural women post-pandemic within the Indian context and an exploration of varied gender-category impacts. Future research in India must adopt a longitudinal, intersectional lens, combining qualitative and quantitative methodologies, to fully grasp and address these enduring gendered ramifications in the agri-food sector in the post-COVID-19 context.

Privacy-preserving reservation model for public facilities based on public Blockchain

Ensuring fairness in the utilization of government-funded public facilities, such as co-working spaces, sports fields, and meeting rooms, is imperative to accommodate all citizens. However, meeting these requirements poses a significant challenge due to the high costs associated with maintaining digital infrastructure, employee wages, and cybersecurity expenses. Fortunately, Blockchain smart contracts present an economical and secure solution for managing digital infrastructure. They offer a pay-per-transaction schema, immutable transaction records, and role-based data updates. Despite these advantages, public blockchains raise concerns about data privacy since records are publicly readable. To address this issue, this study proposes a privacy-preserving mechanism for public facilities' reservation systems. The approach involves encrypting the reservation table with fully-homomorphic encryption (FHE). By employing FHE with binary masking and polynomial evaluation, the reservation table can be updated without decrypting the data. Consequently, citizens can discreetly book facilities without revealing their identities and eliminating the risk of overlapping schedules. The proposed system allows anyone to verify reservations without disclosing requested data and table contents. Moreover, the system operates autonomously without the need for human administration, ensuring enhanced user privacy.

Islamic Economic Review of The Concept of Employee Wages (Case in Jakarta)

Research indicates that the concept of remuneration in Islamic economics emphasizes alignment with its principles. Workers are expected to maintain professionalism and avoid fraud. The primary aim of this remuneration concept is to enhance workers' well-being, reflecting a focus on community welfare and humanity rather than just profit. Entrepreneurs are encouraged to treat workers like family, fulfilling all their needs, and embodying the spirit of cooperation (ta'awun), ensuring no harm comes to any party. This ethos promotes collective responsibility in meeting the basic needs of the less fortunate. In the context of Place in Jakarta City, the remuneration model aligns with Islamic economic principles. Employee pay is based on customer percentage, encouraging each worker to contribute to the business's success. Salaries are adjusted according to the employees' skills and the number of customers they serve, resulting in variable wages rather than a fixed amount. This model ensures that remuneration is fair and reflects the employees' contributions, fostering a cooperative and supportive work environment consistent with Islamic values.

Effects of the German Minimum Wage on Earnings and Working Time Using Establishment Data

Abstract This study examines the short-term effects of the introduction of a statutory minimum wage in Germany on hourly wages, monthly wages and paid working hours. We exploit a novel panel dataset by linking the Structure of Earnings Survey (SES) 2014 and the Earnings Survey (ES) 2015 and apply a difference-in-differences approach at the establishment level. The results indicate an effect of the introduction of the statutory minimum wage on the average hourly wages of employees in minimum wage establishments of up to 5.9 %. Due to negative effects on average working time of approximately minus 3.1 %, the effects on monthly gross earnings are smaller but still amount to up to 2.7 % on average. The results further suggest that the minimum wage effects on earnings were greater among low-wage employees than on average, in eastern Germany than in western Germany, and among part-time employees and marginal employees than among full-time employees.

Determinants of Financial Shortfalls in State-Owned Railway Systems: An Ardl Approach for Sri Lanka Railways

Sri Lanka Railways (SLR) has been experiencing a financial shortfall since the 1940s, characterised by operational expenditure exceeding total revenue. This study aimed to identify the critical determinants of the financial shortfall of Sri Lanka Railways (SLR) using an econometric approach. Employing a quantitative methodology, the study utilised secondary and manipulated data from 1977 to 2022 to examine the effects of four key variables: revenue shortfall from fare revisions (FRFR), subsidised season tickets (FRSS), freight transport volume (FTK), and total wage bill (WB), incorporating the general price level (CCPI) to account for inflation. The regression analysis, using the Auto Regressive Distributed Lag Model, identified a short-run relationship between the financial shortfall (LFS) and lagged variables, including the volume of rail freight transport (LFTK), total employee wage bill (LWB), and the general price level (LCCPI). A long-run relationship was found among revenue shortfall from fare revisions (LFRFR), LWB, LCCPI, and LFS. The findings highlight the significant impact of aligning railway fares with bus fares and managing employee expenses on SLR's financial shortfall. Additionally, the revenue shortfall from subsidised season tickets showed a significant relationship at a 10% significance level, both short-term and long-term. The study underscores the necessity of revising railway fares in line with bus fares to enhance revenue and ensure financial sustainability. Optimising employee-related costs through effective management and reviewing the subsidy structure for season tickets are also recommended. Furthermore, investment in capacity and facility development for freight transport is crucial for mitigating long-term financial shortfalls.

Labour market inequality: a comparative political economy perspective

Abstract Large and rising earnings and employment inequalities in countries such as the USA and the UK pose fundamental questions for social scientists and challenges for policymakers. Mainstream economists have explained these outcomes mainly in terms of competitive market forces, particularly the mismatch between technology-driven demands for skills and those supplied by workers. In contrast, political economy perspectives focus on employer–employee bargaining power, driven by the monopsony power of firms and declining institutional and policy protections for workers. We critically assess the evidence on the education wage premium and employment polarization used to support the competitive market explanation for US wage inequality. We then show that the incidence of decent pay for young less-educated workers varies sharply across similarly rich countries and that new indices of institutional bargaining power closely correspond to differences in pay distributions but are uncorrelated with conventional measures of employment performance. We conclude that well-designed institutional and policy changes can substantially promote shared growth and the well-being of working families.