Do “inferior” jobs always suffer from a wage penalty? Evidence from temporary workers in Cambodia and Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanh-Tam Nguyen-Huu
Keyword(s):  
Quantile Regression ◽  
Wage Differentials ◽  
Wage Gap ◽  
Wage Premium ◽  
Temporary Employment ◽  
Wage Distribution ◽  
Asian Countries ◽  
Wage Penalty ◽  
Content Type ◽  
Permanent Workers

Purpose This paper aims to investigate the wage gap between temporary and permanent workers in Pakistan and Cambodia. Design/methodology/approach Quantile regression estimator is likely to be the most relevant to the sample. Findings The estimates indicate the presence of a temporary employment wage penalty in Pakistan and contrarily a wage premium in Cambodia. Moreover, quantile regression estimates show that wage differentials could greatly vary across the wage distribution. The wage gap is wider at the bottom of the wage distribution in Pakistan, suggesting a sticky floor effect that the penalty of being in temporary jobs could be more severe for disadvantaged workers. By contrast, a glass ceilings effect is found in Cambodia, indicating that the wage premium is small at the bottom and becomes high at the top of the pay ladder. Originality/value Despite the rise of temporary jobs in the past several decades, the empirical evidence on wage differentials between temporary and permanent workers is extremely limited in developing Asian countries. This paper is the first research work that systematically examines the temporary-permanent wage gap in selected Asian countries, based on their National Labor Force Survey data.

scholarly journals Full- and part-time wage differences in Spain: an analysis along the wage distribution

2017 ◽  
Vol 38 (3) ◽  
pp. 449-469 ◽  
Author(s):  
Hipolito Simon ◽  
Esteban Sanroma ◽  
Raul Ramos
Keyword(s):  
Wage Differentials ◽  
Wage Gap ◽  
Conclusive Evidence ◽  
Wage Distribution ◽  
Full Time ◽  
Wage Penalty ◽  
Wage Differences ◽  
Data Set ◽  
Content Type ◽  
Part Time

Purpose The purpose of this paper is to examine wage differences between part- and full-time workers distinguishing by gender by using a large Spanish matched employer-employee data set and an econometric decomposition that permits to decompose wage differences by quantiles of the wage distribution. Design/methodology/approach The research is based on cross-section matched employer-employee microdata from a large representative survey (the Encuesta de Estructura Salarial) which is carried out with a harmonised methodology common to all European Union member countries and that has been designed specifically to provide reliable evidence about characteristics of the wage distribution such us wage differentials associated with the type of working time. From a methodological point of view, the econometric decomposition technique proposed recently by Fortin et al. (2011) to decompose wage differences between part-time and full-time workers by quantiles of the wage distribution is applied. This methodology has the advantage over similar techniques that provides a detailed decomposition of wage differentials and has not been used before to examine the wage impact of part-time jobs. Findings The results show that the significant raw wage gap that part-time workers experience in Spain differs substantially along the wage distribution. In the case of part-time females, the wage disadvantage is mostly explained by their relative endowments of characteristics (and particularly by their lower endowments of human capital and their segregation into low-wage sectors) but a significant wage penalty still persists, increasing along the wage distribution. In the case of males the wage disadvantage is only found in the lower part of the distribution and it is due both to their worst endowments of characteristics and a significant wage penalty. Research limitations/implications The evidence for Spain shows that the part-time work tends to affect differently to the wages of males and females, with a higher part-time penalty for males, as predicted by the “flexibility stigma” hypothesis, and penalising low-qualified men in the lower part of the wage distribution and high-qualified women in the upper part of the distribution the most. Originality/value The analysis contributes to the literature by examining wage differences along the wage distribution for both genders using econometric decomposition methods, an aspect that to the authors’ knowledge has been examined only scarcely in the international literature with non-conclusive evidence and has not been examined in previous studies for the Spanish case. In this vein, Spain is a particularly interesting analysis case from an international perspective of the wage consequences of part-time jobs, given that in contrast with most other advanced countries a majority of part-time employment in this country is involuntary and this phenomenon is especially affecting disadvantaged groups.

The wage gap in Spain for temporary workers: the effects of the Great Recession

2019 ◽  
Vol 40 (7) ◽  
pp. 1319-1346
Author(s):  
Xisco Oliver ◽  
Maria Sard
Keyword(s):  
Great Recession ◽  
Wage Gap ◽  
Least Square ◽  
Wage Distribution ◽  
Temporary Workers ◽  
Content Type ◽  
The Great Recession ◽  
Before And After ◽  
Ordinary Least Square Regression ◽  
Permanent Workers

Purpose The purpose of this paper is to analyse the wage gap between temporary and permanent workers across the whole wage distribution, not just at the mean, and the evolution before and after the Great Recession on this gap in Spain. Design/methodology/approach An extended Mincer-type wage equation is estimated using ordinary least square regression and unconditional quantile regression. Then, the decomposition of the wage gap between workers with fixed-term and permanent contracts for each quantile is made using the Fortin, Lemieux and Firpo decomposition. Findings The results show that two workers, with identical characteristics, earn different salaries if they have a different type of contract. However, the wage gap is not constant across the wage distribution. The penalty for temporary workers is wider for higher wages. Moreover, the main part of the gap is due to observed characteristics, but other factors (unobserved characteristics and discrimination) become more relevant in the upper part of the wage distribution. Originality/value The study expands upon available studies for Spain in two points. First, it is the first paper to the knowledge that analyse both the wage gap between temporary and permanent workers across the wage distribution and its decomposition. Second, the paper explores what happened before and after the Great Recession. In the years that the paper analyses there is also a labour market reform.

The gender wage gap and the presence of foreign firms in Vietnam: evidence from unconditional quantile regression decomposition

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dao Dinh Nguyen ◽  
Xinran Zhang ◽  
Trang Huyen Nguyen
Keyword(s):  
Quantile Regression ◽  
Gender Discrimination ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Wage Distribution ◽  
Foreign Firms ◽  
Content Type ◽  
Foreign Companies ◽  
Unconditional Quantile Regression ◽  
Quantile Regression Decomposition

PurposeThe objective of this study is to estimate the gender wage gap in Vietnam and its rural and urban areas, especially with the presence of foreign firms.Design/methodology/approachThe authors use cross-sectional data from three rounds of the Vietnam Household Living Standards Survey (VHLSS 2008, 2012, and 2016) to investigate this issue. The unconditional quantile regression and Oaxaca–Blinder (OB) decomposition are used in this article.FindingsThe article finds the gender wage gap favouring men, especially in higher quantiles of the wage distribution. The gap in urban Vietnam was higher than in rural areas. The OB decomposition indicates that gender wage gap is mainly driven by gender discrimination. The differences in return to participation in foreign companies only contributed significantly and positively to such a gap in some models. It suggests that the gap in those models is affected by gender discrimination in employment opportunities in foreign companies. Regarding the endowment effect, some models provide the significantly negative impacts of foreign firms on gender wage inequality.Originality/valueThe study suggests that policies to reduce the gender wage gap should pay more attention to foreign firms, especially at higher wage classes.

Wage differentials between immigrants and the native-born in Australia

2015 ◽  
Vol 36 (3) ◽  
pp. 374-396 ◽  
Author(s):  
Lixin Cai ◽  
Amy Y.C. Liu
Keyword(s):  
Immigration Policy ◽  
Wage Differentials ◽  
Wage Gap ◽  
Wage Structure ◽  
Wage Distribution ◽  
Structure Effect ◽  
Composition Effect ◽  
Content Type ◽  
English Speaking ◽  
And Gender

Purpose – The purpose of this paper is to examine the wage differentials along the entire distribution between immigrants and the Australian-born. Design/methodology/approach – Using the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the authors apply a semi-parametric method (DiNardo et al., 1996) to decompose the distributional wage gap between immigrants and native-born Australians into composition effect and wage structure effect. The authors further apply the unconditional quantile regression (UQR) method (Firpo et al., 2007) to decompose the overall wage structure effect into contributions from individual wage covariates. Findings – Relative to the native-born, both effects favour immigrants from English-speaking countries. For male immigrants from non-English-speaking countries (NESC) the favourable composition effect is offset by disadvantage in the wage structure effect, leaving little overall wage difference. Female immigrants from NESC are disadvantaged at the lower part of the wage distribution. Practical implications – The increasingly skill-based immigration policy in Australia has increased skill levels of immigrants relative to the Australian-born. However, the playing field may yet to be equal for the recent NESC immigrants due to unfavourable rewards to their productivity factors. Also, immigrants are not homogeneous. Countries of origin and gender matter in affecting wage outcomes. Originality/value – The unique wage-setting system and the increasingly skill-based immigration policy have made Australia an interesting case. The authors examine the entire wage distribution between migrants and native-born rather than focus on the mean. The authors differentiate immigrants by their country of origin and gender; and apply the UQR decomposition to identify the contributions from individual wage covariates.

Eastern European immigrants in the UK

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Rosso
Keyword(s):  
Wage Gap ◽  
Labour Force ◽  
Wage Distribution ◽  
Eastern European ◽  
Defining Moment ◽  
Content Type ◽  
Before And After ◽  
European Immigrants ◽  
The Uk ◽  
Eastern European Immigrants

PurposeThe paper aims at examining wage developments among Eastern European immigrants vs UK natives before and after the 2004 enlargement by measuring the extent to which inter-group wage differentials are explainable by these groups' changing attributes or by differences in returns to these characteristics. The enlargement has been a defining moment in British recent history and may have contributed to the unfolding of the events that have culminated in Brexit.Design/methodology/approachThe paper uses a quantitative analysis of the immigrant–native wage gap across the entire distribution by applying the methodology known as the unconditional quantile regression. The analysis is performed before and after the 2004 European Union enlargement to Eastern countries. The data used is the British Labour Force Survey (UK LFS) from 1998 to 2008.FindingsAt all distribution points, a major role is played by occupational downgrading, which increases over time. The results further suggest that the decreased wage levels at the top of the distribution stem mainly from low transferability of skills acquired in the source country.Research limitations/implicationsThe UK LFS does not allow to follow individuals for a long period of time. For this reason, the main limitation of the study is the impossibility to measure for individual-level trajectories in their labour market integration and to account for return migration.Originality/valueThe analysis provides a detailed picture of the wage differences between Eastern European immigrants and natives along the whole wage distribution. The paper also identifies possible causes of the wage gap decrease for EU8 immigrant workers after 2008.

Never married and earnings: evidence from Russia

2020 ◽  
Vol 47 (12) ◽  
pp. 1513-1526
Author(s):  
Edgar Demetrio Tovar-García
Keyword(s):  
Work Experience ◽  
Developed Countries ◽  
Wage Premium ◽  
Dynamic Panel Data ◽  
Wage Penalty ◽  
Russian Government ◽  
Content Type ◽  
Never Married ◽  
Civil Status ◽  
Wage Earnings

PurposeThe purpose of this paper is to examine the effect of civil status on wage earnings in post-Soviet Russia. Education and work experience are the key explanatory variables according to the Mincer function. In view of that, here, an extension of the Mincer equation is estimated, focusing on never married individuals versus other civil status (married people). Thus, testing the female wage penalty and the male wage premium hypotheses.Design/methodology/approachThis study is based on dynamic panel data models, underlining the autoregressive nature of earnings, controlling for time-invariant independent variables and adding marriage as an explanatory variable. The models are estimated using longitudinal data over the years 2000–2017, taken from the Russia Longitudinal Monitoring Survey.FindingsThe results indicate that never married Russians do not obtain higher levels of wage earnings in comparison with those who are married or correspond to other civil status. However, there is evidence supporting a wage premium for men and weak evidence of a penalty for women. That is, the regression results indicate a wage penalty for never married men and a wage premium for never married women, yet this last finding is not robust. Therefore, the general findings of this research only partially agree with the most recent evidence in developed countries, where marriage is not anymore associated with wages.Originality/valueThese findings are highly relevant for public policies related to family development, a major concern for the Russian Government during the last two decades. There is a common idea that avoiding marriage is associated with intentions to obtain higher levels of earnings, but this is a problem of myopia.

scholarly journals Male–Female Wage Gap and Informal Employment in Bangladesh: A Quantile Regression Approach

2019 ◽  
Vol 20 (1) ◽  
pp. 106-123 ◽  
Author(s):  
Mustafizur Rahman ◽  
Md. Al-Hasan
Keyword(s):  
Labour Market ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Labour Force ◽  
Wage Distribution ◽  
Informal Employment ◽  
Wage Penalty ◽  
Conditional Quantile ◽  
Female Wage ◽  
Quantile Estimates

This article undertakes an examination of Bangladesh’s latest available Quarterly Labour Force Survey 2015–2016 data to draw in-depth insights on gender wage gap and wage discrimination in Bangladesh labour market. The mean wage decomposition shows that on average a woman in Bangladesh earns 12.2 per cent lower wage than a man, and about half of the wage gap can be explained by labour market discrimination against women. Quantile counterfactual decomposition shows that women are subject to higher wage penalty at the lower deciles of the wage distribution with the wage gap varying between 8.3 per cent and 19.4 per cent at different deciles. We have found that at lower deciles, a significant part of the gender wage gap is on account of the relatively larger presence of informal employment. Conditional quantile estimates further reveal that formally employed female workers earn higher wage than their male counterparts at the first decile but suffer from wage penalty at the top deciles. JEL: C21, J31, J46, J70

scholarly journals Employment protection and gender wage gap in Europe

2020 ◽  
Vol 67 (2) ◽  
pp. 139-165 ◽  
Author(s):  
Cristiano Perugini
Keyword(s):  
Gender Gap ◽  
Wage Gap ◽  
Employment Protection ◽  
Wage Distribution ◽  
Before And After ◽  
Protection Legislation ◽  
Cross Country ◽  
And Gender ◽  
Permanent Workers ◽  
Wage Disparities

In this paper we investigate gender wage disparities in 25 EU countries before and after the crisis, focusing on the role employment protection legislation played in shaping the gap across the wage distribution. Results of quantile regressions reveal a remarkable cross-country diversity in the size of the gap and confirm the widespread existence of glass-ceiling effects. Stricter rules for temporary contracts mitigate the gender gap, especially at the top of the distribution; stronger protection for permanent workers is found to increase the gap at the bottom of the distribution and to decrease it at the middle and at the top.

Occupational segregation and wage differentials by gender and race in Brazil: evidence from a quantile decomposition

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francieli Tonet Maciel
Keyword(s):  
Glass Ceiling ◽  
Wage Differentials ◽  
Occupational Segregation ◽  
White Men ◽  
Wage Distribution ◽  
Occupational Structure ◽  
Content Type ◽  
Gender And Race ◽  
Segregation Behavior ◽  
Vertical Segregation

PurposeThis paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.Design/methodology/approachThe author uses microdata from the National Household Sample Survey and adopts two occupational integration typology to capture both horizontal and vertical segregation. The decomposition method proposed by Firpo et al. (2009) is employed to investigate the determinants of changes in differentials along the wage distribution.FindingsResults suggest a glass ceiling effect for all groups compared to white men. Gender and racial discrimination persist, especially at the top of the distribution. For both black women and men, observable characteristics account for most of the wage differentials, while for white women, the opposite occurs because of their education level. Vertical segregation behavior indicates that white men continue over-represented in higher-paid occupations. Although women improved their relative position in the occupational hierarchy, horizontal segregation behavior shows that their concentration in female-dominated occupations has not reduced, except in extreme quantiles. Education played a crucial role in reducing wage gaps, and regional differences stood out as a significant factor of the racial disadvantage.Originality/valueThe paper shows significant differences between the groups regarding verticalization and horizontalization of occupational structure along the wage distribution and over time, contributing to filling some gaps in the literature concerning the wage stratification based on gender and race in Brazil. Occupational segregation as a composition factor of the groups determines their positions in a vertically hierarchical and socially stratified occupational structure. The behavior of horizontal and vertical segregations evidences the continue under-valorization of female occupations and the barriers faced by racial and gendered groups to overcome the glass ceiling effect. Recognize the intersectionality of gender and race in addressing inequalities is fundamental to promote policies that overcome them.

The wage effects of overeducation across overall wage distribution on university graduates: incidence, heterogeneity and comparison

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongye Sun ◽  
Giseung Kim
Keyword(s):  
Wage Distribution ◽  
University Graduates ◽  
Field Of Study ◽  
Wage Penalty ◽  
Educational Mismatch ◽  
Content Type ◽  
Rapid Economic Growth ◽  
Wage Loss ◽  
Wage Effects ◽  
The Individual

PurposeThis study aims to investigate the extent to which overeducation imposes wage effects on university graduates, taking into account the individual heterogeneity due to skills and innate ability.Design/methodology/approachUsing Graduates Occupation and Mobility Survey (GOMS) 2019 and Korea Dictionary of Occupations (KDOT) 2019, the overeducated and adequately educated graduates are differentiated by the job analysis (JA) measure. To unveil the masked results, the unconditional quantile regression (UQR) accompanying skills and field of study mismatches is adopted to explore the wage effects of overeducation across the overall wage distribution.FindingsEmpirical evidence shows that the incidence of overeducation is high; however, overeducated graduates only suffer a 6.5% wage loss relative to their adequately matched peers. The findings indicate that regardless of being derived from either overskilled or field of study mismatch, genuine overeducation impose a higher wage penalty at all percentiles relative to the apparent overeducation. Meanwhile, high-ability men suffer lower-wage penalties than their low-ability peers, whereas the inverted “U” pattern is exhibited for women. The theoretical hypotheses differ depending on the estimated results by gender.Research limitations/implicationsEach measure of educational mismatch has been criticized for its insurmountable shortcoming. The recent graduates are likely to overstate the job requires of skills.Originality/valueThis paper contributes to the insufficient evidence on the multiple aspects of wage effects of overeducation by providing new and rigorous examinations and by focusing on the country experiencing rapid economic growth, industrial upgrading and educational expansion.

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