Low Pay Research Articles

Cyclical labor costs within jobs

Using UK employer-employee panel data, we present novel facts on how wages and working hours respond to the business cycle within jobs. Firms reacted to the Great Recession with substantial real wage cuts and by recruiting more part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages of 2.6% for new hires as well as for job stayers. Hiring hours worked were substantially procyclical, while job-stayer hours were acyclical. These results show that real wages are not rigid and that the labor costs of new hires are especially flexible.

Pore-scale network modeling of microporosity in low-resistivity pay zones of carbonate reservoir

Archie's law is commonly used for the estimation of brine saturation using electrical conductivity of sedimentary rock. For a formation with narrow pore size distribution (PSD), low resistivity could mean high water saturation and hence, high water production. This, however, is not the case for many formations with wide PSDs, for which Low Resistivity Pay (LRP) zones have been reported with very low or none water cut production. One of the main causes resulting in LRP zones, especially in carbonates, is the existence of wide PSDs. Due to their small sizes, micro-pores have much higher threshold capillary pressures during drainage in a water-wet sample. In these systems, oil as the non-wetting phase preferably occupies larger pores leaving micro-pores saturated with brine. The existence of connected pathways through micro-pores that are fully saturated with a conductive phase (i.e., brine) creates ‘shortcuts’ for the electrical current which causes a short circuit and, ultimately, lowers rock resistivity measured from logs. Here in this work, we investigate the impact of microporosity on the electrical properties of porous media under multiphase flow conditions. We develop a pore-scale network model for the simulation of displacement sequences during drainage and imbibition in the presence of micro-pore networks. To do so, we first construct ‘macro’ networks on 2D rectangular lattices which are later altered to include micro-pores. A comprehensive set of sensitivity analyses is performed to assess the impact of various parameters including the tortuosity, geometry, and location of the microporosity (i.e., parallel or in series, continuous or non-continuous). Also, 3D networks for two different rock samples are used to investigate the effect of PSD on the electrical resistivity curves. This work helps to examine the use of Archie's equation for field applications, specifically, for evaluating formations with wide PSDs.

The Association between Stroke, Integrated Stroke Systems, and the Employability and Productivity of Canadian Stroke Survivors

Background: Integrated stroke systems have been associated with reduced disability in stroke survivors, but their impact on employability and productivity (hours worked/week and hourly wages) of stroke survivors is unclear. Methods: We used Canadian Community Health Surveys (2000–2014) to conduct a quasi-experimental study with the aim of determining the impact of stroke on employability and productivity, and whether the implementation of integrated stroke systems was associated with improvements in the employability and productivity of adult Canadian stroke survivors. Multivariable generalized Poisson regression models were used to determine the effect of stroke on employability; multivariable Heckman models were used to estimate the effect of stroke on productivity. A difference in differences analysis was used to determine the impact of stroke systems on the primary outcomes. Results: The study sample included 400,797 respondents, of whom 5,786 (1.4%) were stroke survivors. Compared to the general population, stroke survivors were less likely to be employed (adjusted incidence rate ratio 0.62, 95% CI 0.59–0.66) and earned an hourly wage that was 5.3% lower (95% CI 1.1–9.3) and worked an average of 1.9 fewer hours per week (95% CI 0.9–2.9). Over the study period, the employability of stroke survivors improved but not productivity. After accounting for temporal changes in overall employment, there was no association between the implementation of integrated stroke systems and either employability or productivity. Conclusion: Employability of stroke survivors improved over the study period but remained lower than the general population, with no differences in provinces with and without integrated stroke systems.

The Sources of the Wage Losses of Displaced Workers

We evaluate the sources of wage losses of workers displaced due to firm closure by comparison of workers’ wages before and after displacement. We decompose the sources of the wage losses into the contribution of firm, match quality, and job title fixed effects. Sorting into lower paying job titles represents the largest component of the monthly wage loss of displaced workers, accounting for 37 percent of the total average monthly wage loss compared to 31 percent for the firm and 32 percent for the match effects. With respect to the hourly wage losses, job title effects account for 46 percent of the total loss, while firm and match effects contribute in equal shares representing each 27 percent of the loss.

Socio-Economic and Living Conditions of Internal Migrant Labour Living in Visakhapatnam City, India

India has seen a high internal migration rate in recent years and among the internal migrants, there is a substantial proportion of poorer migrants involved in low paid and low earning jobs. The present paper reports few socio-economic characteristics and their living conditions of poor migrant labour living in Visakhapatnam city, India, which is one of the world’s fastest growing cities. Migration is one of the reasons for its growth. Data were collected from a sample of 2000 households (with migration duration of 30 days to 10 years) living in 10 slums. This study reveals that migrants are living in sub-human living conditions and are vulnerable to all sorts of risks. It further reports the poor quality of living conditions and services. The vulnerability is a state of being exposed to or susceptible to neglect, which leads to less control over the resources available in the city. They also encounter several constraints such as lack of political voice and basic facilities, low-paid, insecure and hazardous working conditions and less or no access to health care and education. Hence, the government has to recognize poor migrants as a vulnerable urban section that needs special and targeted interventions to improve their living conditions.

Do Women Managers Lower Gender Pay Gaps? Evidence from Public and Private Firms

ABSTRACTThis paper analyzes the link between the share of women managers and the size of the firm-level gender pay gap, looking separately at the private and public sectors. Using a large linked employer–employee dataset for Poland and nonparametric and parametric decompositions, the study finds that a greater share of women managers is associated with an increased advantage for women in selected types of public-sector units: the ones in which remunerations of women and men are already equal, and a large share of the workforce is tertiary-educated. The effects are, however, relatively small in size. In private establishments, lower gender wage inequality is associated with higher shares of women workers, but not women managers.

She Works Hard for the Money: Tackling Low Pay in Sectors Dominated by Women – Evidence from Health and Social Care

This working paper provides data confirming that workers in lower-skilled health and social care assistant positions earn considerably less than the national average wage in their country. The publication argues that the wage penalty for working in female-dominated sectors and occupations such as health and social care can be explained by the underfinancing and privatisation of social care, weaker bargaining power in these sectors than many male-dominated sectors and the fact that care work is subject to a general undervaluation of what often continues to be seen as “women’s” work.

California Community Colleges Produce Positive Employment Outcomes: Results from the Career Technical Education Outcomes Survey

ABSTRACTThe current research investigates the employment outcomes of Career Technical Education (CTE) from California community colleges. We used three years of data from the California Community Colleges Career Technical Education Outcomes Survey – a survey of former community college students. We documented overall positive employment outcomes. Students earned a higher hourly wage (Hypothesis 1), improved their work status (Hypothesis 2), and improved their work term (Hypothesis 3) after their schooling compared to before their schooling, whether or not the student earned a degree or certificate. We also documented that wage increases were positively related to the degree to which participants’ job is related to their field of study. These results are consistent with the intended industry-specific curriculum of CTE programs: California Community College students receive positive employment outcomes from the training they receive in their CTE program.

Crowdsourcing Last-Mile Deliveries

Problem definition: Due to the emergence and development of e-commerce, customers demand faster and cheaper delivery services. However, many retailers find it challenging to efficiently provide fast and on-time delivery services to their customers. Academic/practical relevance: Amazon and Walmart are among the retailers that are relying on independent crowd drivers to cope with on-demand delivery expectations. Methodology: We propose a novel robust crowdsourcing optimization model to study labor planning and pricing for crowdsourced last-mile delivery systems that are utilized for satisfying on-demand orders with guaranteed delivery time windows. We develop our model by combining crowdsourcing, robust queueing, and robust routing theories. We show the value of the robust optimization approach by analytically studying how to provide fast and guaranteed delivery services utilizing independent crowd drivers under uncertainties in customer demands, crowd availability, service times, and traffic patterns; we also allow for trend and seasonality in these uncertainties. Results: For a given delivery time window and an on-time delivery guarantee level, our model allows us to analytically derive the optimal delivery assignments to available independent crowd drivers and their optimal hourly wage. Our results show that crowdsourcing can help firms decrease their delivery costs significantly, while keeping the promise of on-time delivery to their customers. Managerial implications: We provide extensive managerial insights and guidelines for how such a system should be implemented in practice.

Relation between health and wages in Turkey

The purpose of this study is to estimate the effects of health on the hourly wages of women and men in Turkey by using panel data. The data are used to estimate the earning function, where the natural logarithm of hourly wage is the function of individual characteristics, including health. This work complements previous studies by using a panel in which the education variable, measured by the degree obtained, varies over time and therefore it can be estimated through the within estimator. One of the most important observations of this study is that very good and/or good self-assessed health status has a positive effect on wages more for women than for men. Another important finding is that of significant difference in the rate of return to education, which is higher for women than for men.

Losing standard employment in Germany: The consequences of displacement and dismissal for workers’ subsequent careers

This study examines the effects of job loss on workers’ subsequent careers in Germany. To provide a comprehensive picture, I distinguish between displacement due to plant closure and dismissal and simultaneously analyze the effects on workers’ subsequent labor market statuses, labor incomes, and non-standard employment risks. The results show that both events have lasting negative effects. Five years after job loss, displaced and dismissed workers have 12 and 15 percentage point lower employment chances respectively. Although this is mostly explained by higher unemployment risks, more than a third is due to displaced and dismissed workers leaving the labor force entirely, especially via (early) retirement. Moreover, I find large short-term total labor income losses which are mainly explained by lower employment chances and reduced working hours but falls in hourly wages become relatively more important as time passes. Five years after job loss, the negative effects on hourly wages still amount to 6 percent for displaced workers and 8 percent for workers who were dismissed. With respect to non-standard employment, I show that both displacement and dismissal increase the risks of self-employment, part-time employment, and temporary employment with only the latter being transitional in nature.

Gender and management implications from clearer signposting of employability attributes developed across graduate disciplines

ABSTRACT Following identifications of gendered inconsistencies in higher education delivery [Ain, C., F. Sabir, and J. Willison. 2018. “Research Skills That men and Women Developed at University and Then Used in Workplaces.” Studies in Higher Education, Published online. doi:10.1080/03075079.2018.1496412], this work exposes unseen gender-related issues in the graduate population. With graduates prevalent as managers, developing management attributes and employability is emphasised across higher education. Meanwhile, notable disciplinary gender imbalances exist across education and this research explores employability in this context by triangulating Higher Education Statistics Agency and Higher Education Academy data with graduates' degree experiences. Findings reveal notable levels of employability-related support existing, with significant disciplinary variations in its visibility. Some remains unseen, especially in female-orientated disciplines, creating a gap populated by almost 50% more females than males. Consequently, fewer female graduates may recognise certain capabilities as being management-related, potentially resulting in slower career progression compared to male peers, as observed by the Office for National Statistics [ONS. 2019. Overeducation and Hourly Wages in the UK Labour Market; 2006 to 2017. London: Office for National Statistics. Accessed May 2, 2019. https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/compendium/economicreview/april2019/overeducationandhourlywagesintheuklabourmarket2006to2017]. Opportunities exist across disciplines, especially the arts, humanities and social sciences, to enhance visibilities of employability-related support.

All that glitters is not gold: Wages and education for US immigrants

Many destination countries consider implementing points-based migration systems as a way to improve migrants’ quality, but our understanding of the actual effects of selective policies is limited. We use data from the ACS 2001–2017 to analyze the overlap in the wage distribution of low- and high-educated recent migrants from different origins after controlling for other observable characteristics. When we randomly match a high- with a low-educated immigrant from the same country, more than one-quarter of time the low-educated immigrant has a higher hourly wage, notwithstanding a statistically significant difference in the mean wage of the two groups for most origins. For 98 out of 114 countries, this synthetic measure of the overlap in the two wage distributions stands above the corresponding figure for natives. We also find that at least 82% of the variance in log wages for migrants with a given number of years of schooling is due to differences within rather than across countries. This suggests that heavily relying on education to select immigrants might fail to markedly improve their quality.

Pay Inequality, Job Satisfaction, and Firm Performance

We find that within-firm base pay inequality is negatively associated with employee morale. Increases in hourly wages improve morale even among high-salaried employees. In contrast, total pay inequality is positively associated with morale. Low base pay (high total pay) inequality corresponds with employer reviews that emphasize fairness and commitment (talent and reward). Base pay inequality is negatively related to firm performance with no significant relation for total pay inequality. The evidence is consistent with employees viewing base pay as compensation for unobservable effort, with disparity harming morale and productivity. Incentive-based pay disparity may positively signal the value of promotions, yet it is not associated with greater overall productivity.

The Individual Travel Cost Method with Consumer-Specific Values of Travel Time Savings

The treatment of the opportunity cost of travel time in travel cost models has been an area of research interest for many decades. Our analysis develops a methodology to combine the travel distance and travel time data with respondent-specific estimates of the value of travel time savings (VTTS). The individual VTTS are elicited with the use of discrete choice stated preference methods. The travel time valuation procedure is integrated into the travel cost valuation exercise to create a two-equation structural model of site valuation. Since the travel time equation of the structural model incorporates individual preference heterogeneity, the full structure model provides a travel cost site demand model based upon individualized values of time. The methodology is illustrated in a study of recreational birdwatching, more specifically, visits to a ‘stork village’ in Poland. We show that the usual practice of basing respondents’ VTTS on 1/3 of their wage rate is largely unfounded and propose alternatives—including a separate component of the travel cost survey aimed at valuation of respondents’ VTTS or, as a second best, asking if they wish if their journey was shorter and for those who do—use full hourly wage as an indicator of their VTTS.

The value of indigeneity in the tourism and hospitality industry in Aotearoa – manaakitanga

Hospitality within the Indigenous paradigm of manaakitanga (translated as ‘warm hospitality’) is founded on an ‘ethic of care’. This ethic of care creates the space for a multi-dimensional wealth, encompassing “spiritual, cultural, social, environmental and economic well-being” [1]. This is similar to the UNWTO’s sustainable development goals, which are underpinned by the three dimensions of economic, socio-cultural and environmental sustainable development [2]. Manaakitanga in Māori contexts such as marae and many iwi (tribal) organisations demands a values-centred approach that is based on the principle of reciprocity. This form of exchange extends beyond the economic focus of traditional business models and, when applied to non-Māori contexts, demands a degree of culturalising commerce rather than commercialising culture.
 In the global tourism and hospitality industries, Indigenous cultures have become more significant to countries as a means to differentiate themselves from others [3]. Indigenous cultures are appealing to emerging tourism markets and the resultant economic benefits have led industry stakeholders, throughout the global-local nexus, to include Indigenous cultures in national tourism and hospitality offerings. In the context of the New Zealand tourism and hospitality industry, Māori culture is presented in several key ways. For example, the use of manaakitanga in New Zealand tourism marketing [4] highlights and promotes the significance of the culture to the nation. Tourism and hospitality can both support economic development as well as promote the uniqueness, authenticity and beauty of Indigenous cultures that encourages visitation, differentiates nations and showcases national pride. The tourism and hospitality industry is not always beneficial, however, to the actual Indigenous communities from which the intellectual property is derived. There is evidence that shows the use of deep and meaningful cultural values are sometimes misunderstood, exploited and not reflected in actual practice within the industry.
 Indeed, analysis of the engagement of Māori women in the hospitality industry, for example, shows that there are distinct inequities in employment [5]. While these inequities are not unique to tourism and hospitality, the evidence shows that Māori women in service-sector employment, such as hospitality, are disproportionately represented in low paid, lower skilled, precarious work [6]. It is a paradox that Māori women’s contribution as the face of the industry is not associated with decent work and career progression. This paper follows a presentation delivered at the Critical Hospitality Symposium in 2018, where the concept of manaakitanga was critically applied to a range of ‘hospitality’ contexts as a point of social analysis. The importance of sustainable development in the industry lends well to engaging in further research on how Māori cultural frameworks can be used to address inequalities in hospitality as a starting point for a broader research agenda in creating high impact future value and growth for New Zealand’s hospitality industry. This research agenda challenges current business models that tag on Māori cultural concepts as promotional tools for organisational profit-driven praxis. Indigenous frameworks of knowledge, such as manaakitanga, can create the space to bring together the key dimensions necessary for a more equitable, richer, ethical and sustainable global tourism and hospitality industry.
 Corresponding author
 Keri-Anne Wikitera can be contacted at: keri-anne.wikitera@aut.ac.nz
 References
 (1) Spiller, C.; Erakovic, L.; Henare, M.; Pio, E. Relational Well-Being and Wealth: Māori Businesses and an Ethic of Care. Journal of Business Ethics 2010, 98 (1), 153–169. https://doi.org/10.1007/s10551-010-0540-z
 (2) United Nations Environment Programme; United Nations World Tourism Organisation. Making Tourism More Sustainable – A Guide for Policy Makers; UNEP: Paris, 2005. http://sdt.unwto.org/content/about-us-5 (accessed Jun 10, 2019).
 (3) Butler, R.; Hinch, T. Tourism and Indigenous Peoples; Elsevier: Oxford, 2007.
 (4) Tourism New Zealand 100% Pure Campaign: Manaakitanga – Unique New Zealand Hospitality. https://media.newzealand.com/en/story-ideas/manaakitanga-%E2%80%93-unique-new-zealand-hospitality/ (accessed May 2, 2019).
 (5) Baum, T.; Cheung, C.; Kong, H.; Kralj, A.; Mooney, S.; Nguyen Thi Thanh, H.; Ramachandran, S.; Dropulic Ruzic, M.; Siow, M. L. Sustainability and the Tourism and Hospitality Workforce: A Thematic Analysis. Sustainability 2016, 8 (8), 809–831. https://doi.org/10.3390/su8080809
 (6) Parker, J.; Arrowsmith, J. Are We Being Served? Women in New Zealand's Service Sector. Equality, Diversity and Inclusion: An International Journal 2012, 31 (7), 663–680. https://doi.org/10.1108/02610151211263504

The Wage Premium in Italian Cities

In most countries urban workers enjoy higher wages than non urban ones, and this premium increases with the size of the city. In this paper we show that in Italy hourly wages of private-sector workers are 6% higher in urban areas than in non-urban local labor markets (less than 2% controlling for observable workers’ characteristics); this premium is higher for more educated workers and for women. More generally, as the local population grows, hourly wages tend to increase: doubling population increases wages by 2.1% (less than 1% net of workers’ characteristics). Even larger gaps are usually estimated in other developed countries. Using an employer-employee dataset and a standard AKM wage decomposition, we divide Italian wages into two components, one proxying for worker’s skills and the other one proxying for firm’s quality. We find that better workers and better firms both tend to sort themselves in urban areas. Nevertheless, the sorting of workers seems to be more relevant than the sorting of firms, resulting in a larger urban premium for the workers’ component. The sorting of firms is almost entirely explained by a few characteristics of the local labor market, such as higher educational attainment and labor market participation.

The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings

AbstractThis paper evaluates the short-run impact of the introduction of a statutory minimum wage in Germany on the hourly wages and monthly earnings of workers targeted by the reform. We first provide detailed descriptive evidence of changes to the wage structure in particular at the bottom of the distribution and distinguish between trends for regularly employed and marginally employed workers. In the causal analysis, we then employ a differential trend adjusted difference-in-differences (DTADD) strategy to identify the extent to which these changes in wages and earnings can be attributed to the minimum wage introduction. We find that the minimum wage introduction can account for hourly wage growth in the order of roughly 6.5 % or€\euro0.45/hour and an increase in monthly earnings of 6.6 % or€\euro53/month. Despite finding wage growth at the bottom of the distribution, the paper documents widespread non-compliance with the mandated wage floor of€\euro8.50/hour.

Standardized patient methodology in mainland China: a nationwide survey

BackgroundTo describe the current status of standardized patient (SP) practice in mainland China.MethodsWe conducted a nationwide survey in 2016. One hundred and eighty-three SP educators (SPEs) responded to the questionnaire, representing 80 medical centers from 25 provinces in mainland China. All of these centers were affiliated with China Standardized Patients Practice Teaching Guidance. In the survey, we assessed the methods of SPs’ recruitment, hourly wage, how SPs were used and challenges of SP role. We also compared these data among the 4 different regions in China.ResultsIn mainland China, the most frequent range of SPs’ age was between 30 and 40 years (24.8%). The SPs were usually recruited by recommendations from the SPEs or a current SP (43.8%), as well as advertising in the hospitals (43.8%). The mean hourly wage was US$12.60 for teaching activities and US$18.82 for medical examinations. The median frequency for training SPs was 12.9 times per year. The SPs were used in areas such as internal medicine (89.6%), surgery (79.2%) and pediatrics (56.3%). The most challenging parts for the SPs were to remember all of the key points of the cases (51.9%) and portraying the emotions of the case (51.9%). Almost half of the SPs reported that, when interacting with medical students, they had difficulty in providing feedback in consistent with students’ learning objectives. SPs’ gender, age, rewards and scenarios playing were different significantly among the 4 geographic regions in China (P < 0.05).ConclusionsThis survey provided the reliable data on the current situation of SP application in China. SP activities have had an encouraging progress but regional development imbalance.

RENT CREATION AND RENT SHARING: NEW MEASURES AND IMPACTS ON TOTAL FACTOR PRODUCTIVITY

This analysis proposes new measures of rent creation and rent sharing and assesses their impact on productivity on cross‐country‐industry panel data. We find first that: (1) anticompetitive product market regulations positively affect rent creation and (2) employment protection legislation boosts hourly wages, particularly for low‐skill workers. However, we find no significant impact of this employment legislation on rent sharing, as the hourly wage increases are offset by a negative impact on hours worked. Second, using regulation indicators as instruments, we find that rent creation and rent sharing both have a substantial negative impact on total factor productivity. (JEL E22, E24, O30, L50, O43, O47, C23)