Wage Labor Research Articles

Qualification Mismatch and Labor Wage Implications

Qualification Mismatch and Labor Wage Implications

Analysis of Allocative Efficiency in Rice (Oryza sativa L.) Farming in the Batu Alam Industrial Area, Cirebon Regency

This research analyzes the efficiency of farming costs and the factors influencing rice farming costs. The research method used was descriptive quantitative with data collection techniques through surveys and interviews with 176 rice farmer respondents in the natural stone industrial area of Cirebon district. The analysis used is frontier cost analysis using frontier4.1 software using the Maximum Likelihood Estimation (MLE) approach. This research shows that the average cost efficiency or allocative level in the natural stone industrial area is 0.20. The factor that influences the inefficiency of rice farming in natural stone industrial areas is age. Factors directly influencing farming costs are land area, urea, labor, rice selling price, land rental price, and labor wages.

Mujeres berracas: gendered work, geographies of exclusion, and rice farming in Tolima, Colombia

This article uses a Social Reproduction Theory (SRT) lens to illuminate the lived experiences of women in rice farming in rural Tolima, Colombia, by examining the gender division of labor, the devaluation of women’s work, and geographies of exclusion among farmers and farmworkers. Through the analysis of ethnographic findings, this paper argues that perceptions of women as either berracas [tough, badass, stubborn, and hardworking] or out of place legitimize the devaluation of women’s contributions to the political economy of rice. These gender dynamics create geographies of exclusion, shaping rural livelihoods and exacerbating disparities in resource access. This paper advances SRT’s understandings of agricultural wage labor, class differentiation, and how women navigate, resist, and shape their roles in agrarian communities.

Market power and wages: evidence from Brazil

PurposeThe paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil.Design/methodology/approachWith access to matched employer–employee data from Brazil, we first characterized the evolution of the local labor market concentration (Municipality Herfindahl–Hirschman Index [HHI]). Then, we built a fixed-effect model with instrumental variables to verify the association between the local labor market concentration and wages. Finally, a difference-in-difference (DiD) was implemented to verify whether a merger transaction impacted the workers’ earnings in the Brazilian banking sector.FindingsThe paper’s findings suggest that there may be a negative relationship between market power and workers’ earnings.Originality/valueThis research conducted an in-depth investigation of the labor market power in a developing country. As far as we know, our work is the first to evaluate the extension of local concentration in Brazilian formal labor markets and to illustrate its evolution over the last decades. Additionally, when going through the effects of market concentration on wages, we use a new identification strategy that explores changes in the HHI that are caused by national trends in an industry as a source of exogenous variation. Finally, the last part of the paper assesses the effects of antitrust policy on the labor market, a kind of investigation that is still scarce.

Evolution of Labor Concepts and Feminist Perspectives

The study explores the historical evolution of labour from household-based manufacturing to wage-based industrial systems, examining how the definition of work has changed in modern economies. From an economic perspective, work is perceived as a good or service that is traded in markets based on supply and demand. Traditional definitions of work, which emphasize wage labour, are challenged by feminist viewpoints, which emphasize the underappreciation of unpaid care and domestic work. Women's social standing and economic empowerment are restricted by this devaluation, which upholds gender inequality. To look into women's employment and labour participation in Istanbul and Izmir, Turkey, the research uses a census technique and deliberate sampling. The results show that women's paid and unpaid labour is influenced by social, cultural, and economic factors such as family history, education, and occupational segregation. These factors also reveal gendered labour dynamics. The study concludes that labour must be redefined to encompass not only paid employment but also a wider range of activities and societal benefits. To advance gender equality and women's economic empowerment in the context of changing global economies, gender inequalities in labour definitions and regulations must be addressed.

A Novel Approach for Testing Fractional Cointegration in Panel Data Models with Fixed Effects

Fractional cointegration in time series data has been explored by several authors, but panel data applications have been largely neglected. A previous study of ours discovered that the Chen and Hurvich fractional cointegration test for time series was fairly robust to a moderate degree of heterogeneity across sections of the six tests considered. Therefore, this paper advances a customized version of the Chen and Hurvich methodology to detect cointegrating connections in panels with unobserved fixed effects. Specifically, we develop a test statistic that accommodates variation in the long-term cointegrating vectors and fractional cointegration parameters across observational units. The behavior of our proposed test is examined through extensive Monte Carlo experiments under various data-generating processes and circumstances. The findings reveal that our modified test performs quite well comparatively and can successfully identify fractional cointegrating relationships in panels, even in the presence of idiosyncratic disturbances unique to each cross-sectional unit. Furthermore, the proposed modified test procedure established the presence of long-run equilibrium between the exchange rate and labor wage of 36 countries’ agricultural markets.

The labour migration of the Ovambo workers to the diamond fields in German South West Africa

The extraction of several hundred thousand carats of rough diamonds per year in German South West Africa would have been inconceivable without indigenous workers from the Ovamo region. Each year, thousands of migrant workers from the north of the German colony migrated to the diamond fields to engage in diamond mining and wage labour. The Ovambo workers typically entered into short-term employment contracts for six or nine months before returning to their home regions to focus on farming and harvesting for the rest of the year. This article examines the migrant labour of the Ovambo on the diamond fields of German South West Africa from 1908 to 1914. It focuses on the agency of the indigenous miners, the reasons for their migration, and their social profile. Additionally, it explores the interconnections that arose due to the labour migration of the Ovambo between their home regions and the diamond fields, along with their resulting implications. KEYWORDS: Agency. Wage labour. Diamonds.

The Impact of Exchange Rates on Macroeconomic Factors in Lao PDR from 2012-2021

The purpose of the analysis of the impact of exchange rates on macroeconomic factors of Lao PDR from 2012-2022 aims to (1) analyze the fluctuation of macroeconomic factors and exchange rate of Kip/Dollar and Kip/Baht in the Lao PDR from 2012-2021 and (2) the impact of the exchange rate on the macroeconomic factors of the Lao PDR from 2012-2021. By bringing the collected data to summarize, interpret, consider, select and analyze by using descriptive statistical model and inferential statistics to find a value in percentage, parameter value of regression equation with OLS through E-view 12. The analysis results found that: the exchange rate of Kip/Dollar has effect on the Gross National Income (GNI) of the Lao PDR in the same direction relationship, if the exchange rate changes and increases, it means that the kip of Lao PDR is weak. The country will have the ability to compete in terms of price or make the income from exports that change the value of the kip increase and have a continuous effect on the wages of labor in businesses related to exports, investment and the purchasing power of consumers through income and the economic growth increases, lead to export and investment increase. That will result in the increase of the Gross National Income (GNI) of the Lao PDR. The Consumer Price Index of Lao PDR is continuously increasing, if the Dollar /Kip exchange rate increase by 1 US dollar (USD), it will cause the consumer price index (CPI) of Lao PDR to increase by 1.67% in US dollar (USD). For the exchange rate and export relationship of Lao PDR, it shows that if the exchange rate of Dollar/Kip increase by 1 US dollar (USD), it will result in the export value (EX) of Lao PDR increase by 11.15% US dollar (USD). In other side, the Thai/Kip Baht exchange rate is unable to explain the Gross National Income (GNI), Consumer Price Index (CPI) and Lao PDR's exports clearly, which means that there is no relationship among them, or in other words, the Thai Baht exchange rate does not affect the macroeconomic factors in the model of this research.

Aggravated commodification as a new dimension of precarity in platform economy

The concepts of precariousness that emerged in Western countries from the 1980s onwards highlight uncertainty regarding the form, scope and nature of labour in the near future. In this article, we use the concept of aggravated commodification as a new dimension of precariousness faced by platform workers. This concept is derived from Polanyi’s idea of fictitious commodities and is treated as a form of labour-market expansion. Applying critically evaluated theory of Karl Polanyi, the article argues that platforms transform labour into a commodity, potentially leading to exploitation and societal unrest. Aggravated commodification refers to work arrangements that introduce (three-sided) market mechanisms within the labour process. Moreover, thanks to the technological infrastructure platforms are leading to the commodification of activities previously performed outside the market and free absorption of activities that were previously a part of wage labour. The study contributes a comprehensive framework for understanding and enriching discussions on precarity in the context of platform capitalism, especially within Central and Eastern European countries.

Analisis Usahatani Jagung dan Kontribusinya Terhadap Pendapatan Keluarga Petani Jagung di Desa Sukanalu, Kecamatan Barusjahe, Kabupaten Karo

This study aims to determine the production costs incurred for corn farming per hectare per growing season, the farmer's income obtained from farming per hectare per growing season, and the contribution of net income from farming to family income. The data analyzed is data for one planting season in season I (Marc- August) 2022. The population in this study are farmers who cultivate corn. determine the sample using the accidental method which is a sampling method if all members of the population are used as samples, namely 50 families. From the research results, it can be concluded that the average production cost is the largest for the component of labor wages, the average net income is quite profitable to increase family income, and the contribution of corn farmers' income to total family income in the study area is categorized as low. Keywords : Cost, net income, and contribution

Social Inequality in the Age of AI: Implications for Labor, Wage Distribution, and Worker Power

This article critically examines the multifaceted impact of artificial intelligence (AI) on social stratification, situated within the broader historical context of automation-driven productivity advances. Drawing on empirical evidence and evolving theoretical frameworks, we elucidate the intricate dynamics of labor market transformation, skill obsolescence, and wage distribution in the nascent AI epoch. We employ a nuanced task-based approach to move beyond simplistic dichotomies of skill-biased technological change, offering a granular understanding of AI-induced labor market polarization. Our analysis reveals that AI is reshaping the contours of inequality through complex interactions of skill restructuring, wage decoupling from productivity, and shifts in worker bargaining power. We argue that the current trajectory of AI development may accelerate capital-biased technological change, potentially exacerbating existing inequalities. This article not only contributes to the scholarly discourse on technological unemployment and income inequality but also serves as a foundation for evidence-based policymaking in navigating the uncharted territories of human-AI interaction.

Economic Viability and Operational Efficiency: A Comparative Study of Biofloc and Traditional Aquaculture with Special Reference to Bengaluru, India

Aquaculture has emerged as a vital component of the Indian agrarian economy, playing a significant role in enhancing food security, generating income, and promoting rural livelihoods. As one of the largest producers of inland fish in the world, India has leveraged its vast water resources to develop a robust aquaculture sector, contributing to the diversification of agriculture and the overall economic development of the country. In this context, a comprehensive analysis of biofloc and traditional aquaculture methods was carried out to know the differences in economic and operational aspects between them. The results reveal that, biofloc aquaculture requires a substantially higher initial investment compared to traditional methods, as indicated by a significant t-test result. However, feed costs showed no significant difference. Labour wages are notably higher in biofloc, indicating socioeconomic implications. Financial analysis highlights biofloc's financial viability, with positive contribution margins, operating profits, and favourable break-even metrics. Traditional aquaculture, despite lower initial investments, suffers from negative operating profits and a margin of safety deficit. Stakeholder perceptions indicate biofloc's higher productivity, profitability, and operational ease, but acknowledge challenges such as higher initial investments and complexity. Traditional aquaculture, while cost-effective initially, lacks profitability and ease of operation. The findings suggest prioritizing biofloc technology, emphasizing the need for institutional support and subsidies to make it economically viable and accessible to the aqua culturist community.

Globalisation and Performance of Manufacturing Sector in Punjab and Tamil Nadu: Implications for Employment and Wages

The present study is a comparative analysis of the performance of the organised manufacturing sector of Punjab and Tamil Nadu. The aggregate and the disaggregate picture reveals that globalisation-led growth of the manufacturing sector in Tamil Nadu has transformed its economy to a highly industrialised economy in Indian Union, and Punjab remained far behind in this context. However, the implications of the performance of the manufacturing sector on employment and wage share have shown common characteristics in both states. The increased capital intensity in the globalisation era has widened the gap between labour productivity and wage share in both states. Since 1991, the emoluments (capitalist share) have increased at a higher rate than the real wages. The decomposition analysis of wage share shows that the falling labour–capital ratio and increased contractualisation of the labour market are some of the important reasons behind the low growth of employment and fall in the wage share. Moreover, the disaggregated analysis reveals a secular increase in the use of capital per unit of labour in labour-intensive industries that has further reduced the employment elasticity of gross value added (GVA) in both states. It also highlights that regional heterogeneity plays an important role in the performance of a particular industry with respect to employment and wage share. JEL Codes: F60, J24, L60

Environmental regulation, endowment characteristics and income inequality: A general equilibrium analysis

Environmental regulations such as the “dual carbon” target directly act on the restriction of the total amount of dirty capital to reduce carbon emissions. The change in factor endowment will have a range of effects on production and income distribution. To examine the effects of environmental regulations restricting dirty capital endowment on income distribution, this paper presents a general equilibrium model with two sectors and three factors. The unregulated clean capital-intensive sector is imperfectly competitive and features firm dynamics, using labor and clean capital as factors of production, while the regulated dirty capital-intensive sector is perfectly competitive using labor and dirty capital. We show that a decrease in the dirty capital endowment will reduce the output of the dirty capital-intensive sector and expand the clean capital-intensive sector in the long run, making society transition to green production. The tighter the restriction on the use of the dirty capital endowment is, the more firms will enter the clean capital-intensive sector, while the business-stealing effect will reduce the output of individual clean firms. We further show that the rents of both dirty and clean capital will rise while the wage of labor will fall due to the regulation. Changes in factor prices do not necessarily lead to inequality in income distributions. When the factor substitution effect in the regulated sector is large enough, clean production regulation will increase the share of labor income and decrease the share of capital income.

Wage Growth, Labor Market Tightness, and Inflation: A Service Sector Analysis

This Economic Commentary explores the connections among labor market tightness, wage inflation, and price inflation at the service sector level. Across most service sectors, sector-specific labor market tightness and nominal wage growth have been above prepandemic averages since 2022. The data suggest that a stronger positive relationship between labor market tightness and wage growth has emerged in the aftermath of the pandemic. The relationship between sector-specific wage growth and inflation is more varied. In the education and health services sector, higher wage growth is associated with higher inflation after about one year; in the leisure and hospitality services sector, the positive relationship is contemporaneous. I do not find a significant relationship between wage growth and inflation in the other service sectors, such as transportation or financial and business services.

Minimum wage and internal labor migration: Evidence from China

We study the geographical allocation consequences of minimum wage, using individual-level migration data and the substantial variation over time in minimum wages across 262 counties in China. Our preferred specification shows that a 10% increase in the local minimum wage decreases the probability of outmigration by 1.52 percentage points. Using data from a major online recruitment platform, we further corroborate the main finding by showing that workers are less likely to search for a job in other cities when their city of residence experiences an increase in minimum wage.

Cost-benefit Analysis of PPP Construction Projects

This paper discusses the cost and benefit of the cross-river Bridge PPP construction project in Y City, and analyzes the application of PPP model in China and its economic benefits. Research shows that PPP model not only effectively alleviates traffic pressure and promotes regional economic development, but also significantly reduces project construction and transportation costs and improves the quality of public services through social capital investment and operation. As a typical case, the cross-River Bridge project accounts for 95% of social capital, and its successful implementation validates the significant advantages of the PPP model in improving economic and social benefits. In the national economic evaluation, the project made fine adjustments to the investment cost, including the application of shadow price and the adjustment of the conversion factor of labor wages, to ensure the accuracy of the evaluation results. In addition, the technical and economic data of various types of motor vehicles are listed in detail, especially the adjustment of the cost of motor transportation related to time, which provides an important cost reference for the transportation industry. Through the comprehensive analysis of the theoretical basis, practical application and economic cost and benefit of PPP model, this paper not only enriches the cost and benefit analysis theory of PPP projects, but also provides valuable practical experience and theoretical support for similar projects. Looking ahead, suggestions such as improving the governance system and strengthening risk management and control will promote the widespread application of the PPP model in China and inject new vitality into economic and social development.

Government expenditure and the housing puzzle: Unpacking mechanisms

Shocks in housing demand can trigger economic downturns, prompting governments to boost public consumption to mitigate its impact. The literature has found conflicting effects of government spending on residential investment and housing prices. We hypothesize that differences in the construction sector’s responses may be due to factors unaccounted for in the estimations, such as labor supply response to wage changes, labor reallocation between sectors, and the amount of household debt. Using a dynamic general equilibrium model, we demonstrate that government consumption boosts tradable goods production, resulting in increased labor demand and wages. However, this diverts workers away from construction, potentially deepening the wound in this sector. Specific labor market attributes and economic indebtedness can catalyze worker displacement from the construction sector, thus adversely affecting residential investment and overall credit. As a result, borrowers face considerable welfare losses. Redirecting government spending toward housing sustains residential activity while exacerbating the overall welfare decline. Our analysis provides plausible explanations for the disparate empirical evidence on the impact of government spending on the construction sector.

Competition policy and labor income share: Evidence from the antitrust policy in China

This study examines the impact of increased market competition on labor income share. We use the enactment of China's Anti-Monopoly Law as a quasi-natural experiment. The results reveal that the Anti-Monopoly Law has a significant positive effect on the labor income share of firms with higher market power. This is because the rising market competition, effected by the Anti-Monopoly Law, inhibits market power and increases average labor wages. Our findings are relevant for firms in provinces with higher administrative monopolies, with less competition, and under industries with less competition.

Rural Land Circulation and Peasant Household Income Growth—Empirical Research Based on Structural Decomposition

How rural land transfer affects the growth of non-agricultural income and the changes in its sources are important research topics. This study uses the micro-data from the China Family Panel Studies (CFPS) spanning from 2014 to 2020 and empirically analyzes the impact of rural land transfer on the growth of non-agricultural income, based on a multi-dimensional decomposition of rural household income structure. This study found that (1) land transfer has a significant promoting effect on the growth of non-agricultural income. Transferring out land is conducive to increasing wage income and transfer income, while transferring in land compensates for the decrease in operating income by achieving a higher operating income, ultimately leading to an increase in total income. (2) The effect of land transfer on the growth of non-agricultural income is higher in the Eastern region than in the Central and Western regions. The higher the education level of family members, the greater the income-increasing effect of land transfer on farmers. (3) Mechanism analysis shows that land transfer increases farmers’ opportunities for migrant work and improves farmers’ operational efficiency, which are the main channels for the growth in non-agricultural income. This study demonstrates that land circulation will promote farmers’ income growth and prosperity through rental income, share cooperation and dividends, labor transfer and wage income, industrial chain extension and value-added income, and policy support and subsidies.