Salary Growth Research Articles

How Does AI Affect the Pay Gap Within Firms: Mechanism Analysis Based on Personnel Structure and Corporate Investment

ABSTRACTThis study examines how AI impacts the internal pay gap within enterprises. Using data from listed companies in China and a panel data two‐way fixed effect model, findings reveal that AI widens pay gap, with executives in AI‐applied companies earning 0.327 times more than average employees. AI increases executive pay while hindering employee salary growth, especially in nonmanufacturing and private firms. Labor substitution AI reduces employee compensation growth, whereas labor enhancement AI boosts executive pay without affecting employee compensation. AI also influences personnel structure and enterprise investment in fixed assets and R&D, highlighting its “job substitution effect” and “productivity effect”.

Factors Affecting Organizational Commitment in Catering Industry: Haidilao as a Case Study

Organizational commitment is crucial for organizational development. This study analyzes the case of Hai Di Lao to explore the factors influencing organizational commitment in the restaurant industry. The research methodology includes an online survey, yielding 418 valid responses. The results indicate that both results orientation and employee orientation significantly impact organizational commitment through mediating variables: career goal progress, career competence development, promotion rate, and salary growth. Specifically, results orientation significantly affects career goal progress, career competence development, promotion rate, and salary growth, while employee orientation also significantly influences these career-related outcomes. This study emphasizes the critical role of career competence development, promotion opportunities, and salary growth in enhancing employee loyalty, providing empirical evidence for HR managers and organizational leaders in the restaurant industry to design effective retention strategies. Additionally, it recommends that future research adopt longitudinal methods to explore other potential mediating variables, such as job satisfaction and work-life balance, on organizational commitment.

Place-based policies and firm performance: Evidence from Special Economic Zones in India

This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct effects of the program on firm performance. We combine geocoded firm-level data and geocoded SEZs. Our analysis yields that conditional on controlling for initial selection based on observables, the establishment of new SEZs did not induce any discernible positive effect on the productivity growth of firms in the SEZs. To explain this, we focus on the possibility of distortions through non-profitable activities on the part of managers. We find that firms especially in publicly-owned SEZs decreased their productivity growth, while firms located in privately-owned SEZs experience productivity increases. We also show that directors of firms located inside the publicly-owned zones experienced a significant increase in their salary growth, which is not the case in privately-owned SEZs. Our findings are in line with the idea that the possibility of rent-seeking by managers leads to distortions in program implementation.

Productivity Effect of Efficiency Wages at Small and Medium-Sized Manufacturing Enterprises: the Case of Vietnam

Purpose: This paper aims to investigate whether efficiency wages for production workers have a positive effect on labor productivity in Vietnam's manufacturing SMEs.
 Design/methodology/approach: The research analyzes the panel data of manufacturing SMEs collected by UNU-Wider in Vietnam in 2011, 2013, and 2015.
 Findings: The panel-data analysis results for 6,953 observations show that efficiency wages increase labor productivity.
 Research limitations/implications: The scope of this study is limited to Vietnam's manufacturing SMEs. Future studies should include replicating the research model in the service sectors and other countries.
 Originality/value: Previous studies on Vietnamese manufacturing SMEs did not disclose the impact of efficiency wages on firm-level labor productivity using the SME panel datasetVietnam's. The novelty of this study is the introduction of the efficiency wages as an explanatory variable forto labor productivity. The study results shed light on organizational behavior in rational salary decisions. Many of SMEs have decided to pay lower than the average sector wage. NeverthelsessStill, the regression analysis indicates that salary growth improves per-worker productivity. This discovery allows researchers to investigate why SMEs have decided not to raise worker wages significantly while wage increases helps boost labor productivity. As a practical contribution, the study result recommends that for higher labor productivity at lower labor costs, manufacturing SMEs can raise their workers' salaries based on the average sector wage instead of benchmarking them with the average nation-level wages.

ՀՀ-ում ուղեղների արտահոսքի վրա ազդող ցուցանիշների համալիր վերլուծություն / Comprehensive analysis of indicators affecting brain drain in RA

The purpose of the analysis is to study the problems associated with brain drain, which has a significant impact on the economy of the Republic of Armenia. To monitor the latter, the levels of brain drain in Armenia, Georgia and Azerbaijan were studied first of all. To get an idea of brain drain, a brain drain index calculated for a large number of countries was investigated. Based on the available statistical data, not only the actual level of brain drain in Armenia has been studied, but the level of the latter was also predicted in the context of several years. Then a wide range of factors influencing the brain drain in Armenia was investigated, of which two were identified: the level of nominal salaries and the indicator of fractional elites. The research is based on empirical and theoretical methods. Econometric models have been particularly widely used, which allowed us to find answers to a number of questions underlying the study. As a result of the analysis, it became clear, that the brain drain in Armenia after 2023 will be variable and will reach a new maximum level by 2027. The brain drain is positively affected by the growth of nominal salaries, and a negative impact is observed in terms of the index of fractional elites.

Healthcare educational debt in the united states: unequal economic impact within interprofessional team members

BackgroundAdvancing healthcare access and quality for underserved populations requires a diverse, culturally competent interprofessional workforce. However, high educational debt may influence career choice of healthcare professionals. In the United States, health professions lack insight into the maximum educational debt that can be supported by current entry-level salaries. The purpose of this interprofessional economic analysis was to examine whether average educational debt for US healthcare graduates is supportable by entry-level salaries. Additionally, the study explored whether trainees from minoritized backgrounds graduate with more educational debt than their peers in physical therapy.MethodsThe study modeled maximum educational debt service ratios for 12 healthcare professions and 6 physician specialties, incorporating profession-specific estimates of entry-level salary, salary growth, national average debt, and 4 loan repayment scenarios offered by the US Department of Education Office of Student Financial Aid. Net present value (NPV) provided an estimate for lifetime “economic power” for the modeled careers. The study used a unique data source available from a single profession (physical therapy, N = 4,954) to examine whether educational debt thresholds based on the repayment model varied between minoritized groups and non-minoritized peers.ResultsHigh salary physician specialties (e.g. obstetrics/gynecology, surgery) and professions without graduate debt (e.g. registered nurse) met debt ratio targets under any repayment plan. Professions with strong salary growth and moderate debt (e.g. physician assistant) required extended repayment plans but had high career NPV. Careers with low salary growth and high debt relative to salary (e.g. physical therapy) had career NPV at the lowest range of modeled professions. 29% of physical therapy students graduated with more debt than could be supported by entry-level salaries. Physical therapy students from minoritized groups graduated with 10–30% more debt than their non-minoritized peers.ConclusionsGraduates from most healthcare professions required extended repayment plans (higher interest) to meet debt ratio benchmarks. For several healthcare professions, low debt relative to salary protected career NPV. Students from minoritized groups incurred higher debt than their peers in physical therapy.

South African government personnel expenditure 2006–2021: Methodological considerations in using remuneration data

ABSTRACT The level of detail, coverage, accuracy, completeness and time range of personnel expenditure data available in the transversal payroll system used by South African national and provincial government departments, PERSAL, offers opportunities for wage bill analysis that is not possible with the more common and well-known approaches of using either highly summarised tabled data, reported data or survey data. This paper describes a methodology that was developed to extract trends in the wage bill and personnel numbers. The key drivers of total wage bill growth have been identified as personnel growth and salary growth and this paper demonstrates how to disaggregate total growth into these two key drivers. The full-time equivalent is proposed as a measure for annual headcounts, as it provides an accurate summary. Appropriate stratification when analysing the impact of remuneration policies is highlighted. The structuring of payroll data as employees’ career trajectories enables the analysis of changes at the personal level, adding insight to into personnel movements and improvements in salaries.

The right to education as a component of the effective development of legal culture

The main thesis of the proposed research is that in modern conditions of globalization, the realization of the right of citizens to education is an important and necessary condition for the development of society and the state. The right to education provides everyone with knowledge, skills, the development of creative abilities, guarantees the effective functioning of state and public institutions, national security, maintains stability in society and contributes to the development of a democratic, social rule of law state. The purpose of the study is to develop a holistic concept of constitutional and legal provision of the right to education in the Republic of Kazakhstan, taking into account international experience and developing proposals for improving domestic legislation regulating the right to education. The methodological basis is a system of philosophical and ideological approaches, principles, general scientific and special scientific methods that provided an objective analysis of the subject of research. The article substantiates that the state is also interested in ensuring the right to education for everyone, since it is education that creates qualified labor potential, provides training for professional specialists capable of effectively managing public affairs and performing its tasks. In turn, as a rule, an increase in the educational and qualification level of a person is the basis for salary growth, which affects the increase in tax deductions to the state budget, its filling, and therefore leads to economic growth of the state and society as a whole. The effective functioning of the education system in the state contributes to reducing unemployment (pupils, students belong to the category of the employed population), ensuring the vital activity of state institutions, national security, building a social state and establishing stability in society. Special attention in this article is paid to the implementation of scientific analysis of the right to education in the Republic of Kazakhstan in the context of modern international experience. The article makes a number of new theoretical conclusions and proposals, in particular: the signs of the right to education are classified into general (inherent in all categories of human and civil rights) and special (reveal the peculiarity of the right to education in the system of constitutional rights); the concept and content of the principles of the right to education are defined, what are the fundamental principles, ideas that determine its essence and the general direction of development.

Teachers’ willingness to pay for retirement benefits: A national stated preferences experiment

Many states have recently made or are considering changes to their teacher retirement systems. However, little is known about how teachers value various elements of their retirement benefits versus other aspects of their jobs and compensation. To help alleviate this gap, we use a discrete choice stated preferences experiment embedded in a nationally representative survey of teachers to estimate their willingness-to-pay for various retirement plan characteristics and other non-salary job components. We find that teachers would be indifferent between a traditional pension and alternative retirement plan designs if the alternatives were paired with 2 to 3 percent salary increases. Our results indicate that experience is a significant mediator of retirement plan preferences. While more experienced teachers are willing to pay more to keep their traditional pension plans, inexperienced teachers do not have strong preferences around retirement plan type. However, teachers’ willingness-to-pay for traditional pension plans is less than their willingness-to-pay for many other elements of their compensation, including the value of retirement benefits, retirement age, salary growth, healthcare coverage, and Social Security enrollment.

The Mediating Role of Work Environment in The Relationship between Supervisor’s Cooperation, Career Growth and Job Satisfaction among Manufacturing Firms in Batangas

COVID-19 pandemic, not surprisingly, is a major factor in why many workers are rethinking their employment situation and want to pursue a more meaningful and fulfilling job. Many of the employees felt their career has been stalled and have seen stagnation in salary growth, career advancement and skills development. This quantitative correlational study determined the relationship between supervisors cooperation, career growth and job satisfaction. Similarly, this research assessed the mediating role of the work atmosphere to the supervisors cooperation, career growth and job satisfaction among manufacturing firms in Batangas. This study used an adapted survey questionnaire. The researcher employed statistical tools such as Weighted Mean, Pearson Correlation, Mediation Analysis following the Baron and Kenny. The study randomly selected 121 respondents using a four-point Likert-type questionnaire. The relationship of independent variables such as supervisors cooperation and career growth were statistically assessed against the dependent variable such as job satisfaction with the mediating variable of work atmosphere. The results presented clearly show that career growth is fully mediated by work atmosphere while supervisors cooperation is partially mediated by work atmosphere. This means career growth indirectly influences job satisfaction through work atmosphere while supervisors cooperation directly influences job satisfaction through work atmosphere.

A Survey on the Current Situation of Teacher Motivation in Public Junior Middle Schools in Western China

Public junior middle school teachers in western China are an important force in building a high-quality education system. Optimizing teacher motivation measures plays an important role in improving teachers’ work efficiency and improving the quality of school running. At present, there are relatively few investigations and studies on the implementation of the motivation measures for public junior middle school teachers in western China, which limits the accuracy of improving the motivation measures for teachers to a certain extent. Based on the survey of 551 teachers in western public junior middle schools, it is found that the overall situation of teacher motivation is still good, but there are also problems such as large differences between dimensions, differences between school administrators and front-line teachers in their understanding of teacher incentives, relatively low salary and welfare levels, and poor motivation effect of professional title evaluation system. The research believes that optimizing the salary growth mechanism, implementing the teacher salary standard, improving the teacher evaluation method, reasonably reducing the burden of teachers, emphasizing the development of teachers, enhancing the effectiveness of teacher training, strengthening the democratic management of schools, and improving the sense of ownership of teachers can effectively improve the effect of teacher motivation.

Are Women Elders Paid Less than Men? A Brief Report from the North Carolina Statewide Longitudinal Survey of United Methodist Clergy

Background Research has established that salary disparities exist between men and women pastors in the United Methodist Church. However, little work has been done examining the root and trajectories of these differences within the denomination. Purpose In this report, we explore systematic salary differences between United Methodist men and women elders (i.e. ordained clergy) serving in one of the two Annual Conferences in North Carolina. Methods We used six rounds of survey data the Duke Clergy Health Initiative collected as part of the Statewide Longitudinal Study of United Methodist clergy serving in North Carolina between 2010 and 2021. We restricted our analysis to elders serving in active, full-time appointments. We ran four models to assess salary differences between men and women elders. First, we calculated the average salaries by year and gender among all elders. Second, we did the same for elders with five or fewer years of experience. Third, we modeled the average percent salary growth between survey waves by gender. Finally, we modeled elders' salary trajectories based on the year they started in ministry, their years of experience, and their gender. Results Although we found a gender salary disparity among all elders—women do not earn as much as men—the gap is slowly closing. However, this disparity did not exist among elders with five or fewer years of experience. When we considered the average salary growth respondents experienced from one survey wave to the next, we found that, on average, women receive slightly larger (but not statistically significant) increases than men. The final model assessing elders' salary trajectories suggested that salary disparities between men and women were more prominent several decades ago. Assuming a career span of 30 years, the model projects that a woman starting in ministry in 1990 will have earned an average of $6,200 a year less than a man starting in the same year. This gap narrowed to $3,600 among those starting in 2000 and disappeared completely by 2010. And yet, the same model predicts that salary disparities still exist between men and women in the United Methodist Church—a decade after the denomination reached a point where our model projects no gender disparities between the salary trajectories of new pastors. Conclusions and Implications Our analysis suggests that, while male elders have significantly higher salaries than their female counterparts, these two groups have been equitably compensated for the past decade. These two phenomena can both exist because past gender disparities reverberate long into the careers of clergy. This is because, even though salaries across genders may be treated equally now, they are not making up for lost ground. For example, women starting in ministry in 1990 may have experienced the same rate of salary growth as men from 2010 to 2020, but earned less during this timeframe because they entered this period with lower initial salaries than men. For this reason, our model predicts that, although the salary trajectories for men and women were equal starting ministry in 2010, it may be another decade before there is no difference between the average salaries of men and women pastors. Nevertheless, this projection assumes that recent trends persist—something that remains to be seen. Only time will tell if this continues or if women will hit a glass ceiling as their careers unfold.

Teacher’s Job Satisfaction and Commitment of Tombel Subdivision, Cameroon: A Comparative Analysis between Private and Public Schools

The success of the educational sector depends on the satisfaction and commitment of both public and private teachers. Thus, the recruitment, training, development, and growth of both sectors are vital for the overall growth of the educational sector. This research, therefore, aims to examine if there is a significant mean difference between job satisfaction and commitment of public and private secondary school teachers in the Tombel subdivision. The survey sample 253 teachers comprising of 171 teachers from public schools and 82 from private schools. The empirical analysis employed the independent t-test using SPSS version 22. The findings indicate there is no significant mean difference between public and private schools for most instruments of job satisfaction (salary growth, perceive growth opportunities, working environment, and co-worker relationship) except job security. In addition, all the instruments of job commitment (workload, employee turnover intentions, motivation, fear of loss, and Job affection) reveal a significant mean difference between public and private schools in the subdivision. The study, therefore, recommends that to close the gap between public and private secondary school teachers, the educational stakeholders should encourage both sectors by ensuring a single salary scale, ensured better working conditions, and more security in their job.

Women in the pipeline: A dynamic decomposition of firm pay gaps

This paper proposes a new decomposition method to understand how gender pay gaps arise within firms. The method accounts for pipeline effects, non-stationary environments, and dynamic interactions between pay gap components. The decomposition is applied to a new data set covering all employees at the World Bank Group between 1987 and 2015 and shows that historical differences in the positions for which men and women were hired account for 77% of today’s average salary difference, dwarfing the roles of entry salaries, salary growth, or retention differences. Forward simulations show that 20% of the total gap can be assigned to pipeline effects that would resolve mechanically with time.

Renewable energy power plants and economic development in Brazil’s northeast region

Brazil’s northeast is now the region with the largest installed capacity of renewable energy, predominantly wind and solar power. The purpose of this research is to show the relationship between the installation of renewable energy power plants and the economic development in the northeast of Brazil. The methodology used is the generalized spatial two-stage least-squares regression with a spatial lag of the dependent (GDP per capita and salary growth) and independent variables (presence of solar or wind power plant). The results indicate that the presence of renewable energy power plants is beneficial only in terms of GDP per capita growth and not in terms of salary increases. Moreover, the municipalities that benefit the most in terms of GDP per capita growth are the neighboring ones, meaning that the spillover effect is greater than the direct effect. Consequently, renewable power should be adjusted to economic and social situations to avoid local tensions with traditional resource users and inhabitants.

Opportunities for the preemptive formation of decent labor remuneration for researchers in the Russian regions

Objective: to assess the level of formation of conditions for decent remuneration of researchers in the Russian regions. Currently, this sphere faces either being ahead of the targets proposed by the state as part of the social policy implementation, or lagging behind them.Methods: the study uses a methodology of calculating the modified advance coefficient, which determines the growth rate of employees’ wages in comparison with the growth rate of the target indicator in the regions. The modified methodology also provides for accounting for the impact of horizontal unevenness on wages in science, which triggers the “middle income trap”. Due to this trap, measurements of the effectiveness of public policy in the studied area are not amenable to clear categorization. The coefficient implies taking into account the growth rate of wages of researchers, the growth rate of the target indicator and the weight of the region (which in turn reflects the formation of conditions for decent wages for all employees in the Russian Federation subject).Results: according to calculations based on Rosstat data for 2021, only one region showed an advanced growth rate of researchers’ salaries (Leningradskaya oblast). In the remaining 79 Russian Federation subjects, the growth rate of wages in science is lagging behind the growth rate of the target indicator (i.e., they have not used all the opportunities for the formation of decent earnings of researchers). The achievement of the target indicator (200% of the average wage of employees in the region) in these territories is due to the growth of salaries of a limited part of the staff.Scientific novelty: the study determined an algorithm for monitoring the advanced wage growth of researchers in the Russian regions and the principles of public policy (as a set of fundamental and institutional solutions) that will contribute to the formation of decent wages in Russian science.Practical significance: the main provisions and conclusions of the article can be used to form a system of state monitoring of wages in budgetary sectors, as well as to improve the “Science” national project.

The Aging Trend of Insureds and Stochastic Evaluation of Financial Sustainability of Basic Pension in China

The document, National Medium and Long Term Plan for Actively Responding to the Aging of Population points out that in order to actively respond to the aging population in China, it is necessary to steadily increase the endowment wealth reserves. To achieve this goal, it is urgent to stochastically assess the future financial situation of the basic pension insurance in China, grasp its various possible conditions, trends, and corresponding confidence intervals, so that the government can take targeted measures to gradually consolidate the wealth reserves for this basic insurance first, and then steadily increase the social wealth reserves for the elderly. Thus, this paper first analyzes the characteristics of the aging population of insureds participating in basic pension insurance, and then randomly simulates the long-term financial situation of the basic pension insurance. The study found that the aging of the insureds has the characteristics of “fierce coming and slow decline” and “long-term seriousness.” Among the six indicators of the financial situation of basic pension insurance, Indicator 1 (the current year's expenditures as a proportion of current year's contributions), Indicator 2 (current year's balance of contributions and expenditures), Indicator 3 (current year's payment gap as a proportion of current year's contributions), Indicator 4 (accumulated balance), Indicator 5 (fund ratio), and Indicator 6 (accumulated payment gap as a proportion of current year's contributions) are respectively in the range of [0.73%, 1.80%], [−12.05, −0.12] trillion yuan, [0.29%, 3.89%], [−133.39, −5.62] trillion yuan, [2032, 2043] years and [6.72%, 215.63%] with a probability of 95%. We analyzed the influence direction and degree of main parameters on the financial situation of the fund and analyzed the impact of parameter value paths on the final financial status of the fund to improve the ability to strengthen fund reserve. The backtracking found that if the value path of the average salary growth rate shows a trend of rising first and then falling, then the final financial situation at the end of the period will be “worse.” If it shows a trend of falling first and then rising, the final financial situation will be “better.”

Criminal Justice Students’ Perceptions of Their Future Careers

This study examines how criminal justice majors taking courses during the COVID-19 pandemic perceive their future careers. These expectations are compared to those of students majoring in lab sciences and non-lab fields. Variation by race and ethnicity are also assessed. Data were obtained from 188 undergraduate students at a single institution in Spring 2021 and Fall 2021 using an online survey. Results indicated that students’ estimates of their future salaries and job availability were accurate to current labor market conditions. Hispanics anticipated higher salaries and more salary growth than non-Hispanics. Criminal justice majors were attracted to jobs based on potential to help others, challenge, job tasks, salary, and the fun, thrill, or excitement of the job. Health majors were more drawn to features like salary and job availability. Criminal justice students were more likely than others to note power as well as prestige, recognition, or status as appealing job features.

Macroeconomic impacts of the COVID-19 pandemic in the Czech Republic in the period of 2020-2021

This article provides a comprehensive summary of selected macroeconomic impacts of the COVID-19 pandemic in the Czech Republic, including an assessment of certain implemented fiscal and monetary policies, using data from 2019 (to compare the development of the economic situation during the COVID-19 pandemic with the period before the onset of the pandemic), 2020 and 2021 on a monthly or quarterly basis. Particular attention is paid to monetary policy effects, which, unlike fiscal policy, the Mundell-Fleming model considers effective in a small open economy with a freely floating exchange rate. The article also investigates the volume of fiscal measures taken to mitigate COVID-19 pandemic effects, the restrictive measures introduced to Czech households and firms as well as labour market developments during the period of 2019-2021, including quantification of the aggregate labour productivity index. The conclusions of the article are that, during the COVID-19 pandemic, macroeconomic indicators in the Czech Republic acted in accordance with the established partial hypotheses of the Mundell-Fleming model and in accordance with the hypothesis of the modified Phillips curve. Possible causes of the significant increase in inflation since September 2021 include 2020 nominal public and private sector salary growth, which showed faster growth than aggregate labour productivity, and the highly expansionary fiscal policy that characterized the 2021 pre-election period.

Corrigendum to: What has driven acute public hospital expenditure growth in South Australia? An analysis of the relative importance of major expenditure drivers between 2006–07 and 2017–18.

Objective The aim of this study was to investigate whether increasing costs of delivering care have driven real growth in acute public hospital expenditure in South Australia (SA) and what has contributed to these real cost increases. Methods Using published time-series data, we decomposed inflation-adjusted growth in per capita total acute public hospital recurrent expenditure into its major utilisation and cost components to evaluate their relative contribution over the 12 years to 2017-18. Results Real per capita total acute public hospital recurrent expenditure grew by AU$667 (45.2%) over the 12-year period; of this, 86.0% was from real growth in input costs per weighted activity unit, with real growth in the average salaries of hospital staff accounting for AU$247 or 37.0%. Hospital utilisation rates contributed a minor 14.0%. Conclusion Over the 12 years to 2017-18, real growth in average clinical salaries was a more important driver of real growth in per capita total acute public hospital expenditure than rates of hospital utilisation. This would be facilitated by improvements in the scope, accuracy, quality and consistency of published national hospital data. What is known about the topic? Public hospital expenditure is one of the largest and fastest growing areas of government expenditure in Australia. Policy narratives often centre around demand pressures from an increasingly older, overweight, and chronically ill population. Comparatively little attention has been paid to the influence of increases in real input costs within the Australian context. What does this paper add? Real salary growth has been a major driver of acute public hospital recurrent expenditure growth in SA, whereas hospital utilisation rates have played a minor role. What are the implications for practitioners? A clearer understanding of the main drivers of acute public hospital expenditure growth and the resulting benefits to population health is needed to guide the efficient and sustainable use of scarce healthcare resources.