The wage premium and market structure: theory and empirical evidence from Chilean manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruohan Wu ◽  
Mario Javier Miranda ◽  
Meng-Fen Yen
Keyword(s):  
Theoretical Model ◽  
Market Structure ◽  
Empirical Evidence ◽  
Market Competition ◽  
Wage Premium ◽  
Factor Endowment ◽  
Skilled Workers ◽  
Content Type ◽  
Wage Premiums ◽  
Relative Factor

PurposeThis paper aims to examine how the “wage premium,” the percentage by which wages earned by skilled workers exceed those of unskilled workers, varies across industries characterized by different levels of competitiveness.Design/methodology/approachA theoretical model employing constant elasticity of substitution (CES) utility function and constant returns to scale production function is developed and analyzed to derive the effects of industry competitiveness on the wage premium. Econometric methods are applied to Chilean manufacturing data to test implications of theoretical model.FindingsOnce the relative factor endowment is being controlled, market competition significantly reduces the wage premium. More specifically, given with the same relative factor endowment, the wage premium is significantly higher under oligopolistic competition than under monopolistic competition. Empirical evidence from Chilean manufacturers supports our theoretical conclusions.Practical implicationsDuring economic development, the reallocation of production factors from unskilled labor-intensive to skilled labor-intensive industries raises the wage premiums received by skilled workers. Besides, skilled workers will earn higher wages by working in more highly concentrated industries instead of more competitive industries. This needs to be considered by government policymakers who must balance promotion of technical change with prevention of extreme the income inequality.Originality/valueThis paper examines how market structure affects wage premiums, providing new insights into a well-established literature that largely maintains that wage premiums are primarily a function of relative factor endowments or international trade.

Does usage of enterprise social media affect employee turnover? Empirical evidence from Chinese companies

2019 ◽  
Vol 29 (4) ◽  
pp. 970-992 ◽  
Author(s):  
Lu Yingjie ◽  
Shasha Deng ◽  
Taotao Pan
Keyword(s):  
Social Media ◽  
Theoretical Model ◽  
Empirical Evidence ◽  
Employee Turnover ◽  
Theoretical Research ◽  
High Tech ◽  
Content Type ◽  
Enterprise Social Media ◽  
Job Levels ◽  
Social Use

Purpose The purpose of this paper is to examine how the usage of enterprise social media (ESM) affects eventual employee turnover. Design/methodology/approach This study developed a theoretical model based on the proposition that different ESM usage behaviors (utilitarian use, hedonic use and social use) have different effects on employee turnover, and job type and job level can moderate the effect of ESM usage on turnover. The model was examined empirically using 1,791 employee samples from a large high-tech manufacturing enterprise deploying ESM. Findings The results indicate that the utilitarian and social use of ESM has negative effects on turnover, but the hedonic use of ESM has positive effects on turnover. Furthermore, for employees working in different job types and job levels, there are significant differences concerning the effect of ESM usage on their turnover. Practical implications ESM managers should encourage employees to use ESM for utilitarian needs and social support but restrict excessive use of ESM for leisure. In addition, different ESM use policies depending upon job types and job levels could be adopted to retain valuable employees. Originality/value Few studies have focused on how usage of ESM affects eventual employee turnover. Given the lack of theoretical research and empirical evidence, the authors developed a theoretical model and conducted an empirical study to fill the research gap.

Why do large firms pay higher wages? Evidence from matched worker‐firm data

2005 ◽  
Vol 26 (7/8) ◽  
pp. 705-723 ◽  
Author(s):  
Thierry Lallemand ◽  
Robert Plasman ◽  
François Rycx
Keyword(s):  
Private Sector ◽  
Firm Size ◽  
Wage Premium ◽  
Individual Characteristics ◽  
Substantial Part ◽  
Large Firms ◽  
Skilled Workers ◽  
Data Set ◽  
Content Type ◽  
Firm Data

PurposeThis paper analyses the magnitude and sources of the firm‐size wage premium in the Belgian private sector.Design/methodology/approachUsing a unique matched employer‐employee data set, our empirical strategy is based on the estimation of a standard Mincer wage equation. We regress individual gross hourly wages (including bonuses) on the log of firm‐size and insert step by step control variables in order to test the validity of various theoretical explanations.FindingsResults show the existence of a significant and positive firm‐size wage premium, even when controlling for many individual characteristics and working conditions. A substantial part of this wage premium derives from the sectoral affiliation of the firms. It is also partly due to the higher productivity and stability of the workforce in large firms. Yet, findings do not support the hypothesis that large firms match high skilled workers together. Finally, results indicate that the elasticity between wages and firm‐size is significantly larger for white‐collar workers and comparable in the manufacturing and the service sectors.Research limitation/implicationsUnfortunately, we are not able to control for the potential non‐random sorting process of workers across firms of different sizes.Originality/valueThis paper is one of the few to test the empirical validity of recent hypotheses (e.g. productivity, job stability and matching of high skilled workers). It is also the first to analyse the firm‐size wage premium in the Belgian private sector.

How to develop spiritual awareness in the organization

2014 ◽  
Vol 33 (8/9) ◽  
pp. 871-890 ◽  
Author(s):  
Snehal Shah ◽  
Anil Sachdev
Keyword(s):  
Theoretical Model ◽  
Empirical Evidence ◽  
Potential Application ◽  
Design Methodology ◽  
Practical Wisdom ◽  
Content Type ◽  
Spiritual Awareness ◽  
Level Of Consciousness ◽  
Preliminary Support

Purpose – The purpose of this paper is to propose a theoretical model that leverages the practical wisdom of the Panch-Kosa framework of yogic philosophy to develop an awareness of spirituality in the organization. It also provides quasi-quantitative empirical evidence to demonstrate its potential application. Design/methodology/approach – A survey was designed and administered in four different organizations. Correlation, ANOVA and χ2 analysis were conducted to explore the applicability of the proposed framework. Findings – The results indicate that values, as reflected in the physical aspects of an organization such as its logo, symbols and organizational elements characterized as “practice of Fair Governance” and “HR Effectiveness”, influence employee-related outcomes. Further, the study found that when there is a perfect “alignment” between an organization's intent to honor values and its corresponding actions, employees perceive the highest levels of holistic engagement. Research limitations/implications – This study has an implication on how to leverage practical wisdom from Hindu philosophy to enable individuals and organizations to transform to a higher level of consciousness. Originality/value – The paper has ventured into an uncharted territory of integrating the yogic framework of Panch-Kosa to the organizational elements and has provided preliminary support for its applicability in organizations. Moreover, it operationalizes the notion of alignment between organization's value-centric strategy and actions and its impact on employee-related outcomes.

The nexus between product market competition and the quality of analysts’ forecasts: empirical evidence from Chinese-listed firms

2020 ◽  
Vol 14 (1) ◽  
pp. 15-30
Author(s):  
Amjad Iqbal ◽  
Khalil Jebran ◽  
Muhammad Umar
Keyword(s):  
Empirical Evidence ◽  
Market Competition ◽  
Positive Association ◽  
Product Market ◽  
State Ownership ◽  
Product Market Competition ◽  
Future Research ◽  
Manufacturing Companies ◽  
Content Type

Purpose This study aims to explore the relationship between product market competition (competition hereafter) and the quality of analysts’ forecasts. Design/methodology/approach This study uses industry-level (i.e. Herfindahl–Hirschman index), as well as firm-level (i.e. Lerner index) measures of competition and uses forecast accuracy and forecasts dispersion as proxies for analysts’ forecast quality. Further, this study considers a sample of Chinese-listed manufacturing companies for the period spanning 2005 to 2016 and uses various estimation techniques to empirically test the hypothesized relationship. Findings The results show that firms in highly competitive industries are characterized by greater accuracy and smaller dispersion in forecasts. Further, this positive association is more pronounced in SOEs as compared to NSOEs, and in industries characterized by intense competition. The sensitivity analysis further endorses the main results. Practical implications Presenting theoretical and empirical evidence, this study suggests that regulatory bodies should take steps to promote the competitive environment in China. This can help financial analysts in developing more accurate and reliable forecasts and ultimately can bring informational efficiency to the market. Finally, investors would be able to perform their business valuation process in a better way and make economic-useful decisions regarding their capital resource allocation. Originality/value The contribution of the current research is threefold: first, it adds to the limited literature available on this specific topic; second, this study examines the issue in China and further single out the influence of state-ownership and intensity of competition on the relation between competition and forecast properties; and third, this study provides theoretical arguments for the positive association between competition and forecasts quality while setting directions for future research on the topic and suggests the potential channels such as the reporting quality channel and the information disclosure channel that need to be explored further, to better understand the mechanism where competition influences the quality of analysts’ forecasts.

Market structure analysis of health and wellness food products in India

2015 ◽  
Vol 117 (7) ◽  
pp. 1859-1871 ◽  
Author(s):  
Tabassum Ali ◽  
Aftab Alam ◽  
Jabir Ali
Keyword(s):  
Growth Rate ◽  
Market Structure ◽  
Market Competition ◽  
Food Products ◽  
Annual Growth ◽  
Market Size ◽  
Annual Growth Rate ◽  
Health And Wellness ◽  
Content Type ◽  
Food Market

Purpose – The purpose of this paper is to analyze the market structure and level of competition in health and wellness food products by type, category, prime positioning and distribution networks in India. Design/methodology/approach – The study is conducted using secondary data from Euromonitor International. Compound Annual Growth Rate (CAGR) has been calculated for analyzing the market trends in terms of type, category and prime positioning and market competition has been analyzed using Herfindahl-Hirschman Index (HHI). Analysis of variance has been used for analyzing the statistical difference in market competition. Findings – Consumer purchase behavior for food is significantly changing across the world and consumers are becoming increasingly conscious of the health enhancing properties of food. With growing incidences of problems like obesity, diabetes, coronary heart diseases and foodborne diseases, consumers are becoming aware of the role of food in ensuring health and well-being. There have been significant structural changes in the health and wellness food market compositions and India has huge market potential for health and wellness food products with a market size of Rs. 435 billion in 2013 and growing at a significantly high annual growth rate of about 13.8 percent during 2002-2013. HHI results clearly indicate that there is significant competition in the health and wellness food market with average HHI of 0.19. However, the structure of market competition shows a varied trend across the types, categories, prime-positioning and distribution channels of health and wellness food products. Practical implications – Results of the study provide a better understanding of temporal as well as intra-category changes in market size of health and wellness food products and the competitiveness of the health and wellness food market, providing valuable insights to the companies involved in producing and marketing of health and wellness food products in India. Originality/value – Health and wellness food market is an emerging area for the marketer and there are limited analysis on market structure and competition.

Value-chain activities and individual wages

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Márquez-Ramos
Keyword(s):  
Emerging Economies ◽  
Value Chain ◽  
Wage Premium ◽  
Value Chains ◽  
Skilled Workers ◽  
Content Type ◽  
Level Data ◽  
Advanced Economies ◽  
Micro Level ◽  
High Skill

Purpose The purpose of this paper is to contribute to a better understanding of whether emerging economies benefit or suffer more because of value-chain activities than advanced economies do. Specifically, it focuses on the consequences in terms of individual wages. Design/methodology/approach Panel data techniques are used to estimate an expanded Mincerian wage equation over the period 1995-2007. The analysis is performed using micro-level data for two countries that represent two different experiences of value-chain activities in Central Europe: Germany and Slovenia. Findings Increasing value-chain activities reduce wages for low-skilled workers in high-skill-intensive industries in Germany, hence driving up the skill wage premium. Conversely, evidence is found of a decreasing skill wage premium as a consequence of increasing value-chain activities in Slovenia. Finally, increasing value-chain activities reduces the wages of workers in low-skill-intensive industries in both Germany and Slovenia. Originality/value This paper analyses the effect of value-chain activities on wages. It is the first empirical assessment that brings individual wage data directly into the picture for an international comparison focussed on two Central European countries that represent “two faces” of value chains. This paper shows that the effects of increasing value-chain activities on wages differ by country, by industry and by individual skills.

Analysing the employment impact of Sunday wage premiums reductions: Implications for minimum wage research

2021 ◽  
pp. 002218562110218
Author(s):  
Raymond Markey ◽  
Martin O’Brien
Keyword(s):  
Empirical Evidence ◽  
Minimum Wage ◽  
Wage Premium ◽  
Difference In Differences ◽  
Hours Worked ◽  
Significant Evidence ◽  
Wage Premiums ◽  
Employment Impact

This article tests the employment impact of recent reductions in Australian wage premiums, or penalty rates, using surveys of 1828 employees and 236 employers in Retail and Hospitality sectors. In applying wage premium reductions for Sunday work, the national regulator, the Fair Work Commission, anticipated improvements in trading hours, employment and hours worked as a consequence. However, the authors found no statistically significant evidence for these predictions. Nor did difference-in-differences methods indicate substitution of workers subject to cuts for those who were exempt. The authors present the first systematic purpose-designed empirical evidence on the employment impact of wage premiums. In the absence of empirical evidence, the regulator had referred substantially to minimum wage research. This study also has implications for minimum wage research, and contributes to it with a novel methodology examining both aggregate hours and employment, comparing those subject to cuts with those not, and surveying both employees and employers.

Bank market power and firm creation: a multi-country analysis

2016 ◽  
Vol 23 (2) ◽  
pp. 562-589 ◽  
Author(s):  
Mariarosaria Agostino ◽  
Francesco Trivieri
Keyword(s):  
Empirical Evidence ◽  
Market Power ◽  
Market Competition ◽  
International Perspective ◽  
Large Set ◽  
Banking Competition ◽  
Content Type ◽  
Firm Creation ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between bank market power and firm creation, which represents a debated issue in the economic literature, still lacking empirical evidence. Design/methodology/approach – The analysis is carried out by taking an international perspective, using different measures of banking competition, and controlling for a large set of determinants suggested by the variegate literature on firms’ birth drivers. Findings – The main finding suggests that credit market competition may benefit firms’ creation, as the relationship between the latter and bank market power – when statistically significant – appears to be negative. In addition, the detrimental impact of market power appears greater (in absolute terms) when departing from higher levels of banking competition. Research limitations/implications – The empirical evidence seems supporting the competitive position in the debate on the role of banking competition. Furthermore, the authors reckon that the findings reinforce the belief of a crucial role played by the availability of funds for nascent firms, with evident implications for the policy strategies more appropriate to foster entrepreneurship. The “fashion” followed by several countries of lowering administrative entry barriers (van Stel et al., 2007) needs to be reappraised, pondering also means to enrich resources availability. Originality/value – To the best of the knowledge, the paper is the first one addressing the issue of the role of bank market structure on firms’ creation in a multi-country setting.

scholarly journals Monopoly in the container shipping market: an econometric approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Takuma Matsuda ◽  
Enna Hirata ◽  
Kawasaki Tomoya
Keyword(s):  
Market Structure ◽  
Market Competition ◽  
Far East ◽  
Entire Period ◽  
Empirical Literature ◽  
Container Shipping ◽  
Shipping Industry ◽  
The European Union ◽  
Content Type ◽  
Monopolistic Pricing

PurposeSince the 2010s, market conditions for container shipping companies have been deteriorating owing to decreasing container cargo trade and increasing supply capacity. This study aims to contribute to the empirical literature on the container shipping industry market structure. Specifically, this study aims to investigate the extent of market competition.Design/methodology/approachThis study analyzes the market structure and evaluates the market power of shipping companies through a non-structural test.FindingsThe H-statistic for the entire period of 2004–2018 was 0.37, which is significantly different from zero. This indicates the absence of monopoly pricing throughout the entire period. For the time-phased estimates, the H-statistic between 2004 and 2008 is 0.15, which is not significantly different from zero. On the other hand, the H-statistic from 2009 to 2018 was 0.40, which differs significantly from zero.Originality/valueAs the Far East Freight Conference had released tariffs and charge rates by item for container shipping routes, monopolistic pricing is said to have appeared until the European Union abolished the European Economic Community (No. 4056/86) in 2008, before the economic crisis. However, this study indicates that pricing in the container shipping industry has been distinctly non-monopolistic; further, competition seems to have intensified since 2008. Industry competitiveness is of interest not only to academics but also to practitioners, including policymakers, especially when considering competition policies.

scholarly journals Does market competition affect all banks equally? Empirical evidence on Montenegro

2021 ◽  
Vol 10 (2) ◽  
pp. 87-107
Author(s):  
Nina Vujanović ◽  
Nikola Fabris
Keyword(s):  
Panel Data ◽  
Credit Risk ◽  
Market Structure ◽  
Empirical Evidence ◽  
Financial Stability ◽  
Banking Sector ◽  
Market Competition ◽  
Market Concentration ◽  
Bank Stability ◽  
Market Shares

Abstract Bank stability is an important aspect of financial stability, especially in bank-centric systems like that of Montenegro. Hence, it is important to analyse risks affecting stability of both the banking and financial system as a whole. Rising competition among banks could pose a challenge and possibly change the level of credit risk, especially if the banks are small in size. This can affect both credit risk and financial stability. Small-sized banks could be the ones to react less nimbly to a changing market structure than bigger banks with stable market shares. This study tries to answer whether competition affects credit risk in Montenegro and whether banks differing in size react differently. Panel data techniques were applied to eleven banks which account for over 90 percent of the banking sector. The results indicate that market concentration could be particularly harmful when it comes to credit risk of small-sized banks, while large-sized banks are less affected. Overall, the increasing competition may positively affect credit risk in Montenegro.

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