Potential Wage Research Articles

Economic burden of infectious diseases and its equity implications in Indian households: Estimates from a nationally representative household survey (2017–18)

Infectious diseases remain one of the major causes of health and economic burden for Indian households. Furthermore, the magnitude of economic losses on account of infectious disease episodes varies widely across rich and poor households. The primary objective of this research is to estimate the equity impact of infectious disease episodes on out-of-pocket expenditure (OOPE) and wage losses among Indian households. We analysed the Social Consumption: Health (SCH) data from the 75th round (2017–18) of India's National Sample Survey (NSSO). The sample included approximately 113,823 households and 555,352 individuals through a multistage stratified sampling process. We report i) the prevalence of infectious disease and healthcare utilisation rate by levels of care; ii) medical and non-medical OOPE per episode; iii) OOPE and wage loss as a share of households' monthly non-medical consumption expenditure (non-medical MPCE) across wealth quintiles. We adopted a microeconomic cost of illness approach to estimate the OOPE on infectious disease episodes for outpatient care and hospitalization. We also estimated potential wage losses due to a reduction in effective labour supply at the household level because of infectious disease using a production function approach. The overall prevalence of infectious diseases and hospitalization rate were 31 and 9 per thousand persons, respectively. Per capita medical OOPE was more in higher wealth quintiles for outpatient care and hospitalization. However, OOPE as a share of non-medical MPCE was higher in the poorest 20% households (outpatient: 14%; hospitalization: 153%) in comparison to the richest 20% households (outpatient: 5.5%; hospitalization: 96%). Similarly, the wage losses as a share of non-medical MPCE were higher among the poorest 20% households (outpatient: 21%; hospitalization:38%) in comparison to the richest 20% households (outpatient: 15%; hospitalization:11%). Furthermore, the proportion of households reporting the sale of assets and borrowing to finance hospitalization was higher in the poorest (24%) compared to the richest (12.5%). To our knowledge, this is the first paper which contributes to developing an understanding of the equity impact of infectious disease on households in India. We recommend improved targeting and coverage of publicly funded health insurance schemes among socially disadvantaged populations.

Commuting barriers to low-wage employment

Lack of access to affordable transportation has been hypothesized to be a barrier to employment among low-wage workers. We build a structural job search model to investigate how commuting costs influence the employment decisions of low-wage workers in the United States, and whether differences in commuting by race and education can explain observed disparities in employment. We find that commuting itself poses a significant barrier to overall low-wage employment, as the associated costs are high relative to potential wages. However, we find that inter-group differences in commuting costs account for a much smaller fraction of inter-group employment disparities than do differences in other labor market factors such as the wage offer distribution and offer arrival rates.

ITutorGroup: A case study of covert native-speakerism underneath a social justice façade

<p>This article examines the covert native-speakerist strategies iTutorGroup utilizes to discriminate against teachers of nationalities the company appears to deem as undesired. Through content analysis of numerous job application submissions to iTutorGroup’s website, results show iTutorGroup’s automatic hiring process offers teachers of these nationalities a much lower potential wage and only a video-recorded asynchronous interview, if not complete refusal to an interview. In contrast, British, Australasian, and North American nationals are afforded a much higher potential wage as well as a one-on-one live interview. The company conceals these nuanced discriminatory strategies with a façade of equality since they are one of TESOL International Association’s Global Partners. As a Global Partner, iTutorGroup follows suit in pretending to uphold TESOL’s nondiscrimination policies.</p>

Comment on “What Can Students Gain from China's Higher Education?”

Li et al. (2023) use a unique dataset collected from a large-scale survey conducted by the authors to study college students in China. The data provide many interesting and new descriptive statistics about college students, such as their technical certificates received, their internship experiences, and so on. Their study examines how different mechanisms, including human capital, social network, and signaling, help explain the returns to a college education. The human capital measures include grade point average (GPA), technical certificates, etc. Social networks are measured by Communist Party membership, participation in a student union, parental income and education. Students' skills possessed before enrolling in college such as the type of college enrolled in are assumed to be related to signaling. Li et al.'s main findings are: (i) human capital is the least useful in raising the starting salary; (ii) social networks are a strong predictor; and (iii) signaling matters. Li et al. suggest the need to reform the higher education system in China. A novel contribution of Li et al. (2023) is their investigation of the channels explaining the labor market effects of higher education. It complements similar studies that use data from other countries with more sophisticated causality analyses. For example, Dale and Krueger (2002) compare students who attended more selective colleges and those who had seemingly comparable ability but chose to attend less-selective ones and found that they obtained similar earnings in general. Black and Smith (2006) measure college quality with multiple proxies and find that existing studies understated the wage effect of college quality. Zhong (2011) finds that significant return gaps exist between high-ranked and low-ranked college in China. Li et al. (2023) use students' wages for their first job to measure the effect of human capital. A potential issue with the wage for the first job is the quality of the job match. It is known that job turnover rates for new college graduates are very high. For example, Takeshita et al. (2022) find that the turnover rate for new college graduates is around 20% within a year in Japan. In China, 34% of college graduates leave their first job within 1 year.1 Therefore, the first job may not reflect a person's true human capital due to the potential wage penalty of the mismatch (Sellami et al., 2017). This study is limited by the data, yet it would be helpful to discuss more of the implications regarding this issue. As Li et al. also acknowledge, the three mechanisms that determine wages are represented by variables that may overlap for the different mechanisms. For example, the involvement in a student union may be related to their non-cognitive abilities, such as openness, a part of human capital. For the signaling mechanism, the type of school that a student enrolled in has a signaling effect but may also represent the quantity and quality of learning. Although there is some ad hoc flavor in classifying those variables into three channels, the findings about those individual variables still provide useful information. Li et al. (2023) use standardized scores for college GPA. It is possible that the GPA in a top-ranked college is generally lower than in a low-ranked college. By pooling those scores together, the standardized scores may distort their relative magnitudes and their relationship with wages. Li et al. control for college fixed effects and the results still show that GPA is insignificant. Additional explanations could include that an incremental change of GPA does not influence wages, but a large change may do so, such as an increase from a low to a high GPA. Even within the same school, the comparability of GPA can still be problematic due to, for example, possible grade inflation in “soft” subjects. Whether GPA has any effect on earnings should have very important implications and thus warrant further investigation, for example, applying additional techniques to make them comparable and better reflect the true learning. In sum, Li et al. (2023) present new facts and findings about college students in China. They provide useful information for policy makers and will help further research.

Unconditional quantile regression with high‐dimensional data

This paper considers estimation and inference for heterogeneous counterfactual effects with high‐dimensional data. We propose a novel robust score for debiased estimation of the unconditional quantile regression (Firpo, Fortin, and Lemieux (2009)) as a measure of heterogeneous counterfactual marginal effects. We propose a multiplier bootstrap inference and develop asymptotic theories to guarantee the size control in large sample. Simulation studies support our theories. Applying the proposed method to Job Corps survey data, we find that a policy, which counterfactually extends the duration of exposures to the Job Corps training program, will be effective especially for the targeted subpopulations of lower potential wage earners.

Registration patterns, student characteristics and dual enrollment success in Georgia

PurposeDuring 2016–2020, the number of high school students enrolled at Georgia postsecondary institutions increased by over 110% and public spending on dual enrollment more than doubled (Georgia Student Finance Commission, 2020). Benefits to dual enrollment students include improved college performance and shorter time to graduation (An and Taylor, 2015; Blankenberger et al., 2017), which translates into significant tuition cost savings and higher potential wages (Partridge et al., 2020). In light of these economic benefits, this paper examines the subject-taking patterns of dual enrollment students and factors associated with successful outcomes.Design/methodology/approachThe authors analyzed longitudinal records of 1,931 dual enrollees at a public, four-year institution in metro-Atlanta during and between the 2015–16 and 2018–19 academic years. They performed a descriptive analysis, partial least squares structural equation modeling and regression analysis to examine the relationships between subject enrollment patterns, academic success and student demographics.FindingsFemale students fair better academically as dual enrollees than male students. Black students enroll in fewer and less varied courses. The same is true for students from more affluent neighborhoods, who may feel less need to take advantage of dual enrollment as a pathway to collegiate success. Neighborhood affluency does not appear related to dual enrollment success. Younger dual enrollment students, unsurprisingly complete more courses but do no better or worse academically in the average course. Some academic subjects are much more strongly related to the longevity of a student's dual enrollment than others.Originality/valueThere is limited published research on specific subject-taking patterns and success for dual enrollment students.

Does it pay to be green? An exploratory analysis of wage differentials between green and non-green industries

PurposeThis paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.Design/methodology/approachThe empirical analysis is carried out using labour force survey data and interval regressions.FindingsEstimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.Originality/valueTo date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.

The COVID-19 Shock on the Labour Market: Poverty and Inequality Effects across Spanish Regions

We evaluate the distributional consequences of social distancing for the case of Spanish regions. Under 2 months of lockdown plus 10 months of partial functioning our study consistently finds potential wage losses that are sizeable and uneven across the wage distribution all around Spain, but with different intensity depending on the region’s productive structure. The increase of the headcount poverty index oscillates between 8.2 (Navarre) and 19.2 (the Balearic Islands) percentage points, while the Gini coefficient rises between 2.3 (Navarre) and 5.3 (the Balearic Islands) Gini points. We also find that inequality between regions increases, eroding regional cohesion in Spain.

Wage inequality and poverty effects of lockdown and social distancing in Europe.

Social distancing and lockdown measures taken to contain the spread of COVID-19 may have distributional economic costs beyond the contraction of GDP. Here we evaluate the capacity of individuals to work under a lockdown based on a Lockdown Working Ability index which considers their teleworking capacity and whether their occupation is essential or closed. Our analysis reveals substantial and uneven potential wage losses across the distribution all around Europe and we consistently find that both poverty and wage inequality rise in all European countries. Under four different scenarios (2 months of lockdown and 2 months of lockdown plus 6 months of partial functioning of closed occupations at 80%, 70% and 60% of full capacity) we estimate for 29 European countries an average increase in the headcount poverty index that goes from 4.9 to 9.4 percentage points and a mean loss rate for poor workers between 10% and 16.2%. The average increase in the Gini coefficient ranges between 3.5% to 7.3% depending on the scenario considered. Decomposing overall wage inequality in Europe, we find that lockdown and social distance measures produce a double process of divergence: both inequality within and between countries increase.

Does oil price really matter for the wage arrears in Russia?

This paper employs bootstrap full- and sub-sample rolling-window Granger causality tests to explore the time-varying interaction between oil price and wage arrears in Russia. The empirical results reveal that the decline in oil price leads wage arrears to increase, which indicates that there is an oil curse in Russia, as high wage arrears caused by low oil price may hinder the healthy development. Also, the rise in oil price causes wage arrears to decrease, and then the economic and social progress in Russia can be promoted. These results are supported by the Dutch-disease endogenous growth model, which highlights that oil price negatively affects wage arrears. In turn, there is a negative influence from wage arrears to oil price, which points out that the macroeconomic situation in Russia plays an important role in reflecting the changes of oil system. In the situation of international oil market uncertainty and the high dependence on the resources in Russia, investors can benefit from the above conclusions to diversify the investment risks. Also, it can provide implications for enterprises and governments to prevent potential wage arrears and improve the public confidence, as well as turn the resource curse into bonanza.

Moving to Economic Opportunity

In recent years, internal migration rates have fallen to all-time lows, raising questions about why more individuals do not appear to move to encounter more favorable labor market conditions. The fracking oil and gas boom has recently created large, localized economic shocks and corresponding wage increases for men with all levels of education. Fracking can only occur in certain areas exogenously determined by geology, creating a unique situation to identify wage-induced labor migration. In this paper, I first characterize the reduced form migration response to localized fracking booms. The data indicate that migration has been concentrated in North Dakota, with the largest population growth seen among men who are young, unmarried, or moderately educated. Using an instrumental variables (IV) approach to estimate the elasticity of in-migration with respect to wages, I find that a one percent increase in local average wages increased the in-migration rate by 4.6 percent in North Dakota, but only by 3.1 percent in other states. The elasticity in North Dakota is consistently larger across specifications. I find that initial labor market conditions, potential differences in commuting feasibility, and potential non-linear relationships between wages and migration do not seem to explain the geographic difference, while information might play a role. In combination these results suggest that in limited circumstances, there is still substantial migration to potential wage gains, although the magnitude of this response might be severely dampened by external non-market factors, such as the lack of information.

Do students take the predictions of human capital theory into account? An analysis of motives behind further studies in higher education

AbstractIn this paper, we seek to answer the research question as to whether students take into account the predictions of human capital theory (namely the higher wages associated with further studies) in their decision to participate in higher education. Our alternative research question is whether students can be described by Bourdieu's theory on capital conversion, that is, whether they aim to accumulate cultural and social capital during their studies, which can also be profitable for them in the future. Our research method is quantitative: we use cluster analysis to examine the motives behind further studies and employ cross tabulation and variance analysis to reveal the relationship between clusters and social background variables. We find that the wage premium associated with further studies is not the most important motive among students; it holds only minor importance even for those from a disadvantaged social background. The results suggest that students in secondary schools, especially talented but underprivileged ones, should be motivated to enter higher education by informing them about the potential wage premium they can attain if they study further. Importantly, we also find that underprivileged students may be unaware of the fact that higher education is an efficient mechanism to accumulate social and cultural capital, which then can be converted into economic capital.

Sweet Taste of Liberty: A True Story of Slavery and Restitution in America by W. Caleb McDaniel

Reviewed by: Sweet Taste of Liberty: A True Story of Slavery and Restitution in America by W. Caleb McDaniel Angela Boswell Sweet Taste of Liberty: A True Story of Slavery and Restitution in America. By W. Caleb McDaniel. (New York: Oxford University Press, 2019. Pp. 340. Illustrations, notes, index.) Sweet Taste of Liberty, which won the Pulitzer Prize for history in 2020, is a brilliant melding of meticulous research with engaging storytelling. The book follows the lives of the freedwoman Harriet Wood and enslaver and businessman Zebulon Ward, as well as the story of the research McDaniel conducted to reveal these accounts. [End Page 214] Harriet Wood was born into slavery on a northern Kentucky farm and then, like so many other enslaved children, she was sold away from her family before reaching her teens. She lived in both Louisville and New Orleans as the property of the Cirode family. Jane Cirode moved to Cincinnati in the free state of Ohio and later brought Wood there as well, granting her freedom. In 1853, Zebulon Ward, who eventually made fortunes by leasing state prisons in Kentucky, Tennessee, and Arkansas and exploiting and abusing prison laborers, conspired with members of the Cirode family to kidnap Harriet Wood and sell her back into slavery. Appeals to her jailors fell on one sympathetic ear, leading to a legal hearing, but the court refused to recognize Wood's freedom. She was transported south and sold to the owner of a Mississippi cotton plantation, where she remained for over a decade more (including two years in Texas during the Civil War). Several years after emancipation, Wood finally returned to Cincinnati, where she filed suit against Ward, demanding compensation for the time and potential wages she lost while she was enslaved after the kidnapping. She was awarded only $2,500, which was far less than the $20,000 she demanded, but is still a larger restitution than any other formerly enslaved person received in a U.S. court. W. Caleb McDaniel's research began when he found two newspaper interviews with Wood published in the 1870s, which ultimately inspired him to visit archives in nine states. He weaves together the pieces of Wood's and Ward's stories, carefully claiming only what can be proven through primary sources, but he supplements this with the rich background of historical context. As a result, the reader not only follows the fascinating narrative of a woman who lost her freedom, but also learns of the intricacies of slavery in a border state like Kentucky, the pain of separation from loved ones, and the ordeals of being sold "down the river," surviving on a large cotton plantation, and being an enslaved refugee in Texas during the Civil War. Although the portion about Texas is brief, it is an enlightening account from the point of view of an enslaved woman about the arduous trip—and the subsequent years—that many enslaved people were forced to endure by their masters to avoid their being liberated by Union armies. Overall, Wood's story and court case are intrinsically fascinating and deserve wider historical recognition. McDaniel, though, has turned these into a captivating account of this period, revealing how the legal and economic aspects of the institution of slavery interacted in very personal and human ways with those who were kept enslaved. [End Page 215] Angela Boswell Henderson State University Copyright © 2020 The Texas State Historical Association

Wage Inequality and Poverty Effects of Lockdown and Social Distancing in Europe

Social distancing and lockdown measures taken to contain the spread of COVID-19 may have distributional economic costs beyond the contraction of GDP. Here we evaluate the capacity of individuals to work under a lockdown based on a Lockdown Working Ability index which considers their teleworking capacity and whether their occupation is essential or closed. Our analysis reveals substantial and uneven potential wage losses across the distribution all around Europe and we consistently find that both poverty and wage inequality rise in all European countries. Under four different scenarios (2 months of lockdown and 2 months of lockdown plus 6 months of partial functioning of closed occupations at 80%, 70% and 60% of full capacity) we estimate for 29 European countries an average increase in the headcount poverty index that goes from 4.9 to 9.4 percentage points and a mean loss rate for poor workers between 10% and 16.2%. The average increase in the Gini coefficient ranges between 3.5% to 7.3% depending on the scenario considered. Decomposing overall wage inequality in Europe, we find that lockdown and social distance measures produce a double process of divergence: both inequality within and between countries increase.

Understanding joint retirement

Evidence from different sources shows that spouses’ retirement decisions are correlated. Retirement policies affecting individuals in couples are therefore also likely to affect behavior of their spouses. It is therefore important to account for joint features in modeling retirement. This paper studies a structural collective model of labor supply and retirement of both partners in a couple with interdependent preferences, imperfect knowledge of preferences of the spouse, and subjective expectations about the future. We propose a novel method to estimate preferences and the intra-household bargaining process, which relies on stated preferences data collected in the Health and Retirement Study. Respondents were asked to choose between hypothetical retirement trajectories describing the retirement ages and replacement rates of both spouses from three perspectives: considering their own preferences only, the preferences of their spouse only, or the most likely decision for the household. With these data, all model parameters are identified and potential sources of joint retirement can be disentangled. Our results suggest that males misperceive their wives’ preferences, overestimating their disutility of work. Our estimates correct for this. We find strong positive correlations between preferences for joint leisure (leisure complementarity) of the two partners. Counterfactual simulations with stylized retirement paths suggest that the leisure complementarities explain a substantial part of joint retirement, much more than correlation in unobserved heterogeneity or potential wage rates.

Boys, Girls, and Grandparents: The Impact of the Sex of Preschool-Aged Children on Family Living Arrangements and Maternal Labor Supply.

In this study, we consider household decision-making on living arrangements and maternal labor supply in extended families with young children. In such a context, decision-making is driven by the concerns that the companionship of children is a household public good and that family members share childcare and related domestic duties. The incentive to share children's companionship is affected by son preference, whereas the economic motive of labor division hinges on the potential wage rate of the mother. Both channels play important roles in households with mothers whose wage rates are high, while sharing the companionship of (grand) sons is the main driving force in households with mothers whose wage rates are low. Using China Health and Nutrition Survey (CHNS) data, we find that among less-educated mothers, the incidence of a family coresiding with the paternal grandmother is at least 8.6 percentage points higher if the firstborn is a boy. At the same time, maternal labor supply increases by 2.9 days per month. By contrast, for educated mothers, the propensity for coresidence is higher, the working hours are longer, and the impact of the child's sex is not significant. Our study not only provides a better understanding of the demographic and economic factors determining coresidence and intrahousehold time allocations but also lends empirical support to policies aiming to increase female labor supply and improve the well-being of girls.

Salaires et mobilité de l'emploi des professionnels de santé dans les milieux urbains du Cameroun

AbstractThe objective of this study was to analyse the influence of wages on health professionals' job mobility. Based on health professionals data collected in urban areas of Cameroon, a binomial logit model was estimated. Our results show that wages are negatively correlated with the likelihood of health professionals to consider an imminent departure from the current health facility for another job in or outside the health sector. The increase of one unit of the residual potential wage gain decreases the probability to consider a voluntary departure from the current job of 4 per cent to 8 per cent for another job in the health sector or outside. Wage improvement can then be considered as a retention policy of health professionals in their current health facility. This strategy can be used to curb the migration problems of health professionals and strengthen a health system which is already suffering the pangs of the human resource crisis for health. However, this wage improvement strategy expresses the complexity of retention policies for health professionals based on wages in the public sector, as it can induce adverse effects linked to the loss of human resources.

Implementation and evaluation of a rural community-based pediatric hearing screening program integrating in-person and tele-diagnostic auditory brainstem response (ABR)

BackgroundIn an attempt to reach remote rural areas, this study explores a community-based, pediatric hearing screening program in villages, integrating two models of diagnostic ABR testing; one using a tele-medicine approach and the other a traditional in-person testing at a tertiary care hospital.MethodsVillage health workers (VHWs) underwent a five day training program on conducting Distortion Product Oto Acoustic Emissions (DPOAE) screening and assisting in tele-ABR. VHWs conducted DPOAE screening in 91 villages and hamlets in two administrative units (blocks) of a district in South India. A two-step DPOAE screening was carried out by VHWs in the homes of infants and children under five years of age in the selected villages. Those with ‘refer’ results in 2nd screening were recommended for a follow-up diagnostic ABR testing in person (Group A) at the tertiary care hospital or via tele-medicine (Group B). The overall outcome of the community-based hearing screening program was analyzed with respect to coverage, refer rate, follow-up rate for 2nd screenings and diagnostic testing. A comparison of the outcomes of tele-versus in-person diagnostic ABR follow-up was carried out.ResultsSix VHWs who fulfilled the post training evaluation criteria were recruited for the screening program. VHWs screened 1335 children in Group A and 1480 children in Group B. The refer rate for 2nd screening was very low (0.8%); the follow-up rate for 2nd screening was between 80 and 97% across the different age groups. Integration of tele-ABR resulted in 11% improvement in follow-up compared to in-person ABR at a tertiary care hospital.ConclusionsNon-availability of audiologists and limited infrastructure in rural areas has prevented the establishment of large scale hearing screening programs. In existing programs, considerable challenges with respect to follow-up for diagnostic testing was reported, due to patients being submitted to traveling long distance to access services and potential wage losses during that time. In this program model, integration of a tele-ABR diagnostic follow-up improved follow-up in comparison to in-person follow-up. VHWs were successfully trained to conduct accurate screenings in rural communities. The very low refer rate, and improved follow-up rate reflect the success of this community-based hearing screening program.

A Cross-Cohort Analysis of Human Capital Specialization and the College Gender Wage Gap

In this paper, we exploit new data to assess gender differences in pre-labor market specialization among the college educated and highlight how those differences have evolved over time. We highlight new results pertaining to gender differences in the mapping between undergraduate major and subsequent occupational sorting. To perform our analysis, we introduce new indices in potential wage space that measure gender differences in major choice and separately the subsequent occupational sorting conditional on major choice. We highlight that women both choose majors with lower potential earnings (based on male wages associated with those majors) and that they then subsequently sort into occupations with lower potential earnings given their major choice. We highlight that these differences have narrowed over time but recent cohorts of women still choose majors and occupations with lower potential earnings. Differences in undergraduate major choice explains a substantive portion of gender wage gaps for the college educated above and beyond simply controlling for occupation. Collectively, our results highlight the importance of understanding gender differences in pre-labor market human capital specialization and the mapping between college major and occupational sorting when studying the evolution of gender differences in labor market outcomes over time.

Polarized labor demand owing to routine-biased technological change: The case of Korea from 1993 to 2015

With the development of technologies that efficiently enable human resources to be replaced or substituted across occupations, routine-biased technological change (RBTC) is currently pervasive in developed countries. This study finds statistical and empirical evidence for RBTC in Korea from 1993 to 2015 using the routine task intensity (RTI) index. The changing employment structure shows a decline in middle-skilled occupation groups and concurrent rise in high- and low-skilled occupation groups in Korea in the sample period of time. Empirical results confirm that employees in routine-intensive occupations are more vulnerable to job loss and further potential wage polarization.