Wage Ratio Research Articles

Beyond public work-first support: long-term impact of a privately owned employment programme across educational levels

Some unemployed individuals may struggle to match their vocational skills with the current labour demand in a traditional classroom. Exploring alternative workplace approaches may be necessary. A Dutch multinational's vocational employment programme offers an alternative to traditional work-first support for vulnerable unemployed individuals, diverging from forced approaches tied to benefit receipt. This study examines the programme's long-term impact compared to work-first support by analysing post-programme job matches through observed-to-expected wage ratios while controlling for job tenure and contract types. Participants outperformed a work-first control group in improved job alignment up to 10 years. The long-term benefits on career development were particularly pronounced for those with lower education levels, while higher-educated individuals experienced better matches with extended transitions. Results underscore the value of human capital by offering them a temporary workplace in a reputable multinational firm for marginalised job seekers. Expanding such enterprise-led initiatives has the potential to disrupt precarious employment cycles, fostering lasting positive change in vulnerable workers’ careers.

School-to-Work Transition in the Youth Labor Market in Central and Eastern Europe: A Cluster Analysis Approach

Abstract Background This study analyzes education, training, and the youth labor market in central and eastern Europe. Objectives This study aims to evaluate similarities and differences in youth labor markets among eleven central and eastern European countries from 2008 to 2021. It specifically examines three aspects: wage ratios, early departure from education or training, and the share of the population not in employment, education, or training. Methods/Approach This study applies hierarchical clustering and multidimensional scaling to panel data. The complete-link method organizes countries into clusters. This study combines three-dimensional Cartesian projections and two-dimensional projections based on multidimensional scaling with dendrograms and heatmaps, to graphically illustrate the "school-to-work" transition across this region. Results Clustering highlights the Visegrád countries, the Baltics, and the Balkans as zones with internally homogeneous yet externally heterogeneous challenges for the youth generation. As the outliers in each of these regions, Poland, Estonia, and Bulgaria support clustering solutions that deviate from conventional understandings of central and eastern Europe. Conclusions Historical and geographical ties continue to define this region’s youth labor markets across political and economic dimensions. Clustering analysis identifies triumphs and struggles in policymaking in some of the poorest and most politically challenging member-states of the European Union.

Ethanol from Bagasse Obtained During Non-centrifuged Sugar Production. A Comprehensive Sustainability Analysis in the Colombian Context

AbstractThe production of biofuels is an alternative to reduce the impacts of the transformation of fossil fuel sources. In this work, the evaluation of ethanol production from the bagasse obtained during non-centrifuged sugar production (BNCS) to determine its sustainability in the Colombian context is proposed. Two pretreatments (i.e., dilute acid and alkaline) are proposed, followed by enzymatic saccharification to release glucose from cellulose. Both liquors rich in C6 sugars were followed by a fermentation stage with Saccharomyces cerevisiae, and the obtained ethanol concentration was measured. The process was simulated and evaluated to obtain metrics in technical, economic, environmental, and social terms. Also, an evaluation of the sustainability index of the process in the Colombian context was proposed. Diluted acid was the best processing pretreatment, reaching glucose and xylose concentrations of 15.13 g/L, and 12.15 g/L respectively, and a final ethanol concentration of 3.45 g/L. The technical analysis yielded results for Process Mass Intensity (PMI) of 38.14 and Renewable Material Index (RMI) of 5.09. The minimum process scale for economic feasibility (MPSEF) was 19.6 Ton/h. In this sense, the payback period and turnover ratio were 12 years and 35.01%, respectively. Values of 1.85 kg CO2 eq/kg ethanol for carbon footprint and 1.02 m3/kg ethanol for water depletion were also obtained. For the social analysis, the minimum-to-living wage ratio (M/L) was 1.03. Finally, the sustainability index was 75.19%, and the social and environmental values were the most influential aspects affecting the sustainability index. The results of this work allows a novelty vision related to the integral analysis of sustainability for one of Colombia’s native raw materials, and to propose viable solutions for its use, without threatening food security. Graphical Abstract

Multidimensional heterogeneity and matching in a frictional labor market — An application to polarization

This paper examines the role that changes in production technology, namely computerization, have played on labor market inequality in the US from the late 1980s to the 2010s. It also demonstrates that such technological change is consistent with the timing of labor market polarization in the US, including the end of the decline in 50/10 wage percentile ratio and the slowdown of employment growth in high-wage jobs from the 2000s. The paper does so using a model with two key ingredients: 1) directed search and 2) two-sided multidimensional heterogeneity. Calibration results show that the complementarity between a workers’ cognitive skills and the cognitive task intensity of jobs increased while that between manual skill and tasks did not. The full model can fully account for the rise and fall of the 90/50 and 50/10 wage percentile ratios respectively. It also generates 72.6 percent of the rise in employment share of high-paying jobs relative to middling jobs and 69 percent of the fall in employment share of middling jobs relative to low-paying jobs. The paper suggests that the end of the decline in the 50/10 wage ratio may be due to rank-switching between workers across the wage distribution from the 2000s, while the slowdown of employment growth in high-wage jobs may result from the trade-off between the returns to applying for high-wage jobs and the likelihood of being hired.

Resident Salary Compared With Living Wages at US Training Institutions.

To compare living wages and salaries at US residency programs. It is unknown how resident salary compares to living wages across the United States. Cross-sectional analysis of publicly available resident salary affordability from training centers with postgraduate year (PGY)-1 through PGY-7 resident compensation for 2022-2023 was compared with the Massachusetts Institute of Technology Living-Wage Calculator. Resident salary-to-living wage ratios were calculated using PGY-4 salary for each family composition. Univariate and multivariable analysis of PGY-4 salary affordability was performed, accounting for the proportion of expected living wages to taxes, transportation, housing, health care, childcare, and food, as well as unionization and state income tax. One hundred eighteen residency programs, representing over 60% of US trainees, were included, 20 (17%) of which were unionized. Single-parent families were unable to earn a living wage until PGY-7. Residents with 1 child in 2-adult (single-income) and 2-adult (dual-income) families earn below living wages until PGY-5 and PGY-3, respectively. Residents with more than 1 child never earn a living wage. Multivariable regression analysis using PGY-4 salary: living wage ratios in single-child, 2-parent homes showed food expense and unionization status were consistent predictors of affordability. Unionization was associated with lower affordability prestipend, almost equivalent affordability poststipend, and lower affordability poststipend and union dues. Resident salaries often preclude residents with children from earning a living wage. Unionization is not associated with increased resident affordability in this cross-sectional analysis. All annual reimbursement data should be centrally compiled, and additional stipends should be considered for residents with children.

The Employment Contracts Act 1991 and the labour share of income in New Zealand: an analysis of labour market trends 1939–2023

The share of wages and salaries in New Zealand’s Net Domestic Income fell steadily from 1981 to 2002, with no apparent break in trend coinciding the Employment Contracts Act 1991 (the ECA). However, adjusting the aggregate wage-share measure to control for changes in the size of the employee workforce relative to the total adult population yields a measure that we call [following Pen, J. (1971) Income distribution, translated by T.S. Preston. Allen Lane, the Penguin Press] the Wage Ratio – compensation per employee relative to national income per adult. That ratio, supported by a statistical analysis of its components, highlights the early 1990s as a decisive turning point and shows how the conventionally-measured labour share may fail to identify crucial changes in the balance of power in the labour market.

Left Partisanship, Corporatism, and the Reorientation of the Knowledge Economy in Advanced Capitalist Societies

Abstract While the progress of the knowledge economy is inexorable, this paper argues that partisan politics and labor market institutions can affect the direction in which the knowledge economy progresses. In particular, a combination of corporatist industrial relations systems and left partisanship tends to foster greater wage restraint, and such a wage outcome tends to encourage the greater adoption of communications technology than information-processing technology in the economy. This reorientation of the knowledge economy toward communications technology, in turn, has egalitarian distributive implications. In particular, the greater adoption of communications technology reduces wage inequality across the board in lower 90–10, 50–10, as well as 90–50 wage ratios. These arguments are tested using data across 15–21 OECD countries (1970–2015).

Organized Labor, Labor Market Imperfections, and Employer Wage Premia

This article examines how collective bargaining through unions and workplace codetermination through works councils relate to labor market imperfections and how labor market imperfections relate to employer wage premia. Based on representative German plant data for the years 1999–2016, the authors document that 70% of employers pay wages below the marginal revenue product of labor and 30% pay wages above that level. Findings further show that the prevalence of wage markdowns is significantly smaller when organized labor is present, and that the ratio of wages to the marginal revenue product of labor is significantly larger. Finally, the authors document a close link between labor market imperfections and mean employer wage premia, that is, wage differences between employers corrected for worker sorting.

Gender Wage Ratio and Intra-household Resources Allocation in China: Evidence from the China Health and Nutrition Survey

The gender wage gap is a critical measurement of gender equality in the labor market. On the demand side in the labor market, gender differences in labor pricing can shape the household decision regarding intra-household resource allocation. Understanding how labor pricing, namely wages, affects the resources allocated to women is important to improve womens welfare in developing countries. Previous research focuses on the effects of gender norms in China, such as son preferences, on intra-household resource allocation. This paper examines how the gender wage gap affects the resources allocated to women within the household. To capture the wage shock in the labor market, I construct the gender- specific Bartik variables. The results indicate that the increases in female-to-male wages between couples improve womens nutrition intake. This work serves to inform about improving womens welfare in the family and labor market.

Examining the boundary conditions of tokenism: within-occupation gender wage gaps and female representation in the Canadian labor market

PurposeThe purpose of this study was to examine the boundary conditions of Kanter's (1977) tokenism theory as applied to the gender wage gap. The authors aimed to discover if there was a point where the relationship between the percentage of women in a job category and the gender wage gap changed, and, if so, where the threshold was located and what was the nature of the shift in relationship.Design/methodology/approachThe authors used the Andrews’ (1993) threshold effects technique. Using 22 separate years of publicly available Canadian wage data, they examined the relationship between the percentage of females in 40 unique occupational categories and the female-to-male earnings ratio (for a total of 880 observations).FindingsThe results showed the existence of a threshold point, and that early gains in percent female within an occupation, up to approximately 14% female in the occupation, associate with strong gains in the female-to-male wage ratio. However, beyond that point, further gains in percent female associate with smaller improvements in the female-to-male wage ratio.Practical implicationsThe findings are useful in understanding the dynamics of occupational group gender composition, potential theoretical reasons for the nuances in relationship, as well as opportunities that may facilitate more equitable outcomes.Originality/value The results show that, though improvements were made above and below the threshold point, enhancements in the wage gap are actually larger when there are less women in the job category (e.g. tokens).

Alcohol policy in Russia in the last decade: A movement backwards

Since the mid-nineties of this century, Russia has intensified its state policy of combating excessive alcohol consumption. In particular, a minimum price threshold for vodka was introduced, excise taxes on alcohol in alcoholic beverages were substantially increased, and a mandatory ban on nighttime retail sales was introduced. A number of studies using Russian microdata have confirmed the effectiveness of these measures. From 2007 to 2017, the dynamics of alcohol consumption by the Russian population did show a consistent decline. Many researchers, both Russian and foreign, considered this trend as a success of government policy. Recently, however, official statistics have noted an annual increase in the consumption of alcoholic beverages: from 7.2 liters of pure alcohol per capita adult population in 2017 to 7.7 in 2021. Why has the alcohol policy, designed initially in line with international best practices, not reduced consumption in recent years? This article analyzes the practice of applying price and restrictive measures for the last 10 years on the basis of Rosstat data, federal and regional legislation. Excise duties and minimum vodka prices in real terms are calculated, as well as indices of the ratio of alcoholic beverage prices and average wages. The real excise taxes and prices for alcoholic beverages decreased after 2014, making them more affordable for consumers. After 2017, there is no increase in the number of Russian territories applying stricter temporary restrictions on alcohol trade compared to the norm of the federal law. Today, almost half of the country’s population lives in regions with the mildest possible time limits on alcohol sales that do not constrain its physical availability. We have to admit that the alcohol policy is inconsistent. The formal application of price and restrictive measures in the last decade has not prevented the growth of alcohol consumption.

АНАЛИЗ ТЕНДЕНЦИЙ В ДИНАМИКЕ ТРЕХ КЛЮЧЕВЫХ СОЦИАЛЬНЫХ ПОКАЗАТЕЛЕЙ ЭКОНОМИКИ РОССИЙСКОЙ ФЕДЕРАЦИИ (ПО ДАННЫМ ЗА 2005-2022 ГГ.)

The work is devoted to the development of methods and computer tools for the analysis of key socio-economic indicators of the Russian Federation, per capita monetary income, expenses and wages of employees of the organization, based on statistical data for 18 years (for 2005-2022). To analyze the relationships and trends of key indicators, both classical statistical methods were used (visualization using various graphs and calculation coefficients), as well as methods of econometric modeling. The developed tools and computer model are based on the identification of relationships and dependencies between time series of key socio-economic indicators using methods of linear, hyperbolic, power, exponential and parabolic correlation and regression. The methodology also includes the calculation and analysis of coefficients characterizing the ratio of wages to income; expenses to income and expenses to wages, as well as visualization and analysis of changes in these relations for 2005-2022. Quantitative analysis in economics involves the development and comparison of a large number of options that differ in the initial data, the form of communication and other parameters. In this case, it becomes necessary to repeatedly perform the same computational operations. The computer model developed by the authors, based on MS Excel, allows you to automate the execution of the same type of calculations for various indicators and their ratios. The proposed toolkit has been developed and tested on the example of three key social indicators of the economy of the Russian Federation for 2005-2022). For all three key social indicators under consideration, it was possible to construct statistically significant models of various types, quantitatively characterizing their relationship, which can be assessed as positive and quite close.

International Factor Mobility, Rural Development Policies and Wage Inequality in the Presence of Industrial Goods as Intermediate Input in Agriculture

The paper develops a three-sector small open economy model with two final good sector and a non-trade good sector producing industrial intermediate goods in agriculture. It is shown that an increase in either type of labour endowment (capital endowment) raises (lowers) the unemployment rate of either type of labour if the scale elasticity of output is very low. On the other hand, if the industrial sector is more capital intensive than the agricultural sector and if efficiency functions of both types of labour are identical, then an increase in either type of labour endowment (capital endowment) lowers (raises) the skilled–unskilled wage ratio. However, the effect of a change in capital endowment on the Gini Coefficient of wage income distribution is ambiguous in sign.

Rent–wage inequality in Mexico City, 1770–1930

AbstractThis article traces trends of income inequality in Mexico City from 1770 to 1930 by measuring the gaps between urban real estate rents and unskilled wages. The article presents the first long‐term series of real estate values and rental income for Mexico. One series summarizes the price of an apartment in tenement housing (the prevalent type of popular housing in Mexico), while the other relies on newspaper ads, notarial records, and other sources to estimate property values and rental yield (rental revenue relative to property values). From these wage and rental income series, we calculate rental–wage ratios that are broadly representative of the income gaps between the wealthy and unskilled workers. We find that, at the end of the eighteenth century, inequality moderately increased, followed by a more egalitarian period in the first half of the nineteenth century, and a ballooning in the last quarter of the nineteenth century that persisted into 1930. While inequality receded after the insurrection in the 1810s, it remained high after the Mexican Revolution. We hypothesize that inequality was sensitive to economic growth, and that generalized violence did not universally temper inequality.

Do minimum wages deliver what they promise? Effects of minimum wage on employment, output, and income inequality from occupational choice theory

This paper addresses the unresolved debate on the effects of minimum wages on output, employment, and income inequality by modeling an occupational choice economy calibrated for a representative OECD economy. The minimum wage sets a minimum skill requirement for employees, which reduces the effective labor supply and raises its price. Consequently, salaries increase, business profits fall, and some entrepreneurs transition to solo self-employment. With a minimum-to-average wage ratio of 0.43 (the OECD countries average in 2020), a 10% increase in the minimum wage reduces output, employment, and inequality among employees by 0.2%, 1.0%, and 2.1%, respectively, and increases total income inequality by 0.57%. If the minimum-to-average wage ratio were 0.55, output, employment, and inequality among employees would decrease by 0.87%, 3.55%, and 5.19%, respectively, and income inequality would rise by 2.09%. In summary, the effects are mainly negative, contrary to what is promised, and quantitatively large for high minimum-to-average wage ratios.

Gender wage inequalities in the Eurasian Union countries

Purpose of the research. To analyze the influence of factors determining the wage gap between employees, gender pay ratios in the context of individual types within the country and between countries.Methodology. In the course of the study, index analysis was used using the assortment displacement index, structural shift indices, constant and variable composition indices. Correlation and regression analysis in order to study the relationship within countries and the relationships between countries.Originality / value of the research. The value of the study lies in a new approach (using GDP ratios, at parity and in national currency, to calculate comparable real levels of wages of employees between countries by type of economic activity and by gender), which allows calculating real wage levels.Identification of the relationship that determines the differences in wages between men and women, the ratio of wages between men in different countries. Differences in wage differentiation between certain types of economic activity in the context of individual countries are analyzed.Findings. The results of the study made it possible to obtain real ideas about the level of wages, differentiation between certain types of economic activity and in the gender aspect between countries. Real dependencies and ratios of the formation of women's wages within individual countries, correlations in the levels of differentiation in the gender aspect are revealed.

Does the Gender Wage Gap Influence Intimate Partner Violence in Brazil?

<h3>Abstract</h3> Greater gender equality in wages may reduce Intimate Partner Violence (IPV) by improving women’s economic opportunities and enabling them to leave abusive relationships. On the other hand, increases in women’s income may trigger use of violence as an extractive mechanism or as an alternative way to assert superiority for men once economic superiority was challenged. Using panel data from Brazil, we test if the gender wage ratio influences IPV as measured in three types of administrative data: homicides, overnight hospitalizations for assault, and mandatory reports of IPV by health care providers. More wage equality leads to a reduction in violence against women in settings where income is likely to be a binding constraint for leaving abusive relationship: in low-income settings and among younger women.

China Shock and Female Labor Market Participation in Brazil

Brazil was a successful case of economic growth based on import substitution. Recently, with the China shock, the country’s economy has been exposed to greater competition. In a similar period, an increase of 12 percent in the proportion of formalized female workerstook place in the Brazilian labor market. This paper explores the variation of China Shock between Brazilian local labor markets (or microregions) to identify whether the expansion of Chinese participation in international trade was able to improve the women’s conditions in the Brazilian labor market between 2000 and 2013 measured by the proportion of women formalized, and the wage ratio of female to male workers. It is the first study to assess how the two channels of China shock, the influx of Chinese imports in Brazil, and the increase in Chinese demand for Brazilian exports, affected the outcomes of formal Brazilian women, with data from the Brazilian labor market (RAIS and Census) and information on trade flows between Brazil and China (BACI database).

The ratio of wages of workers and employees in the censorship industry of the Siberian Region in the second half of the 1920s.

The article examines the issues of remuneration of employees of the enterprises of the censorship industry of Siberia during the years of the NEP and the ratio of salaries of different categories of employees to workers' salaries, which allows us to identify the degree of income inequality between them, as well as to answer the question of how great was the differentiation of their financial situation, and not only in general, but also by individual industries. No less important is the question of trends in the dynamics of indicators of this differentiation in the very short period of the NEP, when approaches to state regulation of this important social process were formed. It is shown that, in general, during the period under review, the ratio of salaries of workers and employees at the enterprises of the censorship industry of the Siberian Territory was stable and at the same time differed greatly depending on the industry and the position of the employee. It is concluded that these differences were smaller than at the very beginning of the XX century. Despite the general equalizing trend in wage policy and the corresponding activity of trade unions, the economic need for the material interest of employees forced to maintain a certain level of wage inequality, and in some employees even slightly increase it.

WAYS TO ENSURE SUSTAINABLE IMPLEMENTATION OF THE PENSION SYSTEM IN UZBEKISTAN IN THE FUTURE

This article highlights the importance and features of the pension system. It also analyzes the current situation of pensioners and recipients of social benefits. The organization of the pension system, based on the insurance model and having funded components, and its advantages are highlighted. The state of the accumulative pension system is also considered. The ratio of the average monthly wage and the average pension, the coverage ratio in Uzbekistan are analyzed. Proposals and recommendations have also been developed for the stable implementation of the pension system in the future.