scholarly journals Expanding higher education and wage inequality in Chile

2020 ◽  
Vol 47 (4) ◽  
pp. 877-889
Author(s):  
Yoshimichi Murakami ◽  
Tomokazu Nomura

PurposeThis study aims to analyse the contribution of the expansion and diversification of higher education to Chile's increase in wage inequality from 1992 to 2000 and its subsequent decrease from 2000 to 2013.Design/methodology/approachThe wage equation for each year is estimated using data from the national household survey, Encuesta de Caracterización Socioeconómica Nacional (CASEN). Using the method proposed by Firpo et al. (2009), the evolution of wage changes is decomposed into composition and wage structure effects of each explanatory variable at different points of the wage distribution.FindingsThe results show that the positive composition effect of higher education, derived from the increasing share of both workers with university degrees and those with vocational degrees, is substantially larger at the upper quantiles and exceeds the negative wage structure effect, thereby contributing to increasing wage inequality from 1992 to 2000. By contrast, the negative wage structure effect of higher education, primarily derived from the decreasing return to university degrees, is substantially larger at the upper quantiles and exceeds the positive composition effect, thereby contributing to decreasing wage inequality from 2000 to 2013.Originality/valueThis study contributes to the literature by showing that the expansion of higher education increased inequality in the 1990s and decreased it in the 2000s while the increasing supply of workers with vocational degrees decreased wage premiums for university degrees in the latter period.

2015 ◽  
Vol 36 (3) ◽  
pp. 374-396 ◽  
Author(s):  
Lixin Cai ◽  
Amy Y.C. Liu

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rabeh Morrar ◽  
Fernando Rios-Avila

PurposeThis paper examines the level and structure of the wage inequality between nonrefugee and refugee workers in Palestine and the extent to which such wage gap reflects any marginalization and discrimination against refugees. It also investigates how the disparities in distribution to individual worker characteristics contribute to the wage inequality in Palestine.Design/methodology/approachThe authors use both Oaxaca and Blinder (OB) (Oaxaca, 1973 and Blinder, 1973) and Fortin et al. (2011) unconditional quantile decomposition approaches to measure the size of the wage gap along with the wage distribution and to decompose the wage differences into productivity (i.e. explained or the composition effects) and wage structure effects (i.e. unexplained or discrimination effects).FindingsResults indicate that most of the wage gap between refugees and nonrefugees is attributed to the wage structure effect (possibly explained by discrimination) against refugees in the Palestinian labor market. The wage gap between refugees and nonrefugees is not uniform throughout the wage distribution and supports the “sticky floor effect.”Practical implicationsThis work introduces important policy implications for the policymakers in the Palestinian labor market. It reveals the economic and social factors, individual worker characteristics as well as labor market characteristics contribute to the wage inequality in Palestine.Social implicationsThis research reveals a crucial social challenge in the Palestinian society, represented by the wage discrimination against refugees in Palestine. This is despite the denial of such discrimination from official bodies, local institutions and many other policymakers. It also captures gender inequality between men and women.Originality/valueThis is the first empirical work in Palestine that contends with a very sensitive issue in the Palestinian society, that is, the discrimination against refugees in the Palestinian labor market. Most of the existing studies have approached this issue from a humanitarian view in order to show the deterioration of social and economic situations in the refugee camps.


1998 ◽  
Vol 32 (1) ◽  
pp. 79-95 ◽  
Author(s):  
Alberto Dávila ◽  
José A. Pagán ◽  
Montserrat Viladrich Grau

This article studies the earnings gap between Mexican, Hispanic and non-Hispanic white male workers resulting from changes in both the wage structure and immigration laws that occurred during the 1980s. Our results suggest that Mexican and Hispanic workers were adversely affected by these two changes. Using data from the 1980 and 1990 One Percent Public Use Microdata Samples, we show that these “at-risk” workers minimized the negative impact of the increases in the returns to skill by gaining in the non-Hispanic white residual wage distribution. We conclude that at-risk workers increased their work effort to lessen the effects of Act-induced employment losses. Using 1983–1992 data from the National Longitudinal Survey of Youth and EEOC data for this period, we provide support for this contention.


2019 ◽  
Vol 33 (4) ◽  
pp. 698-708
Author(s):  
Bjørn Stensaker ◽  
Elisabeth Hovdhaugen ◽  
Peter Maassen

Purpose In recent decades, higher education institutions have been encouraged to develop their own internal management systems as a response to perceived quality challenges in the sector. These quality management (QM) systems have often been found to mainly reflect external accountability requirements, with less focus on coherent study programme development. The purpose of this paper is to explore the relationship between QM practices and study programme delivery in Norwegian higher education institutions. Design/methodology/approach The study examined how coordination and control of quality work with respect to educational activities take place, using data from a survey to study programme leaders in a large sample of Norwegian higher education institutions. Findings The main findings show that a majority of institutions have established formal advisory bodies with a QM mandate, contributing to more coherent thinking, even though the division of labour between these bodies and formal decision-making structures often is unclear. The study also shows a high level of diversity in the collaboration practices among different actors involved in QM work, indicating that QM practices are adapted to local needs. Originality/value The paper provides new knowledge as to how QM is conducted in practice at the local level. It nuances earlier studies by showing the involvement of collegial bodies in QM although such bodies may have unclear mandates and, thus, an unclear role in the QM process.


Author(s):  
Nursel Aydiner-Avsar ◽  
M. Burak Onemli

This chapter aims to analyze the evolution of Turkish wage structure following the introduction of new labor law in 2003 in the EU accession process. The authors first present a descriptive picture of the changes in wage inequality between 2003 and 2013. They then conduct an econometric analysis of the relative importance of individual, job- and workplace-related factors on wages across the wage distribution to understand what drives this outcome. It is found that wage inequality decreased from 2003 to 2007, and increased during the global economic crisis. Increased returns to college education, skilled white collar jobs as well as returns to construction sector stand out as the major factors increasing wage inequality. Though to a lesser extent, increased returns to blue-collar jobs, formal job status and reduced returns to employment in large firms are factors reducing wage inequality in Turkey in the post-2003 era.


2016 ◽  
Vol 8 (1) ◽  
pp. 58-99 ◽  
Author(s):  
David H. Autor ◽  
Alan Manning ◽  
Christopher L. Smith

We reassess the effect of minimum wages on US earnings inequality using additional decades of data and an IV strategy that addresses potential biases in prior work. We find that the minimum wage reduces inequality in the lower tail of the wage distribution, though by substantially less than previous estimates, suggesting that rising lower tail inequality after 1980 primarily reflects underlying wage structure changes rather than an unmasking of latent inequality. These wage effects extend to percentiles where the minimum is nominally nonbinding, implying spillovers. We are unable to reject that these spillovers are due to reporting artifacts, however. (JEL J22, J31, J38, K31)


2008 ◽  
pp. 12
Author(s):  
Arnaud Dupuy

This article reviews the literature on two-sided atomless assignment models of workers to tasks. Using simple parametric examples, the fundamental differences between the comparative-advantage and the scale-of-operations models are illustrated. Holding the distributions of abilities and tasks and the production function of worker-task pairs constant, the two principles are shown to produce different wage distributions and wage inequality. These models are useful to evaluate the general equilibrium effect of technical change on the wage structure. In all models, Skill Biased Technical Change that impacts the production function of worker-task pairs leads to rising wage inequality.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Derek R Slagle ◽  
J.J. McIntyre ◽  
April Chatham-Carpenter ◽  
Heather Ann Reed

PurposeThe purpose of this study is to examine the types of information that were shared by the institution, and faculty/staff responses to the information shared, with the goal of providing recommendations for other institutions facing concurrent crises.Design/methodology/approachThis mixed-methods case study examines a public university's experiences managing the Covid-19 pandemic crisis while simultaneously navigating financial challenges that had been building over time. Using data from university-wide mediated communications and a survey of on-campus stakeholders during the Covid-19 pandemic and university retrenchment process, this paper explores institutional communication, stakeholder response to organizational communication and faculty/staff reactions to information in the midst of concurrent crises.FindingsThe study found that the university used instructing and advising information within its messages from its top administrator but fell short of incorporating empathy for its stakeholders in its initial responses.Research limitations/implicationsUsing the situational crisis communication theory (Coombs, 2019), which recommends the use of an ethical base response to crises, implications are provided for other organizations facing concurrent crises during the Covid-19 pandemic, to also incorporate empathy in their messages to stakeholders whose livelihoods are being affected, across multiple platforms.Originality/valueWeathering the Covid-19 pandemic and long-term financial pitfalls have proven to be a disruptive phenomenon for higher education institutions. This research expands understanding of institutional communication and stakeholder reactions in a higher education institution facing both the Covid-19 crisis and a retrenchment.Peer reviewThe peer-review history for this article is available at: https://publons.com/publon/10.1108/OIR-09-2020-0415.


2018 ◽  
Vol 10 (6) ◽  
pp. 53
Author(s):  
Elano F. Arruda ◽  
Daniel B. Guimarães ◽  
Ivan Castelar ◽  
Pablo U. C. Castelar

This work analyzes the determinants of the probability of a Brazilian worker being unemployed for more than a year, using data from the 2013 National Household Survey (PNAD) and applying a probit model. The results show a lower chance of remaining jobless of males, heads of households, those who declared themselves black, younger people, those who completed higher education or are in the process of acquiring it, and residents of the Southeast and South regions of Brazil. The probabilistic scenarios show that the Brazilian workers least likely to remain unemployed for over a year are males, residents in the South or Southeast region, heads of a household, between 36 and 45 years of age, with higher education, with only a 0.6% chance of remaining in that condition. On the other hand, the workers with the highest chance of remaining unemployed are females, between 46 and 65 years old, residents in the North region, illiterate and not household heads, with a 41% probability of remaining unemployed.


2019 ◽  
Vol 36 (2) ◽  
pp. 236-249
Author(s):  
Nils Witte

Abstract Wage inequality continued to increase through the 1990s and 2000s in post-industrial economies. This article contributes to the debate on occupations and inequality by assessing the role of occupational segregation and occupational closure for understanding the increase in inequality. Using employee data for West Germany in 1992 and 2012 and based on decompositions of unconditional quantile regressions the article investigates the contribution of changes in both occupational characteristics to changes in the wage structure. Our findings suggest that both the employment increase in more closed occupations and increased rewards in these occupations have contributed to wage increases across the distribution, especially in the lower half of the wage distribution. Our results further suggest disproportional wage increases in female-dominated occupations at the bottom of the distribution and disproportional wage decreases in male-dominated occupations at the top. If these occupational characteristics had remained at 1992 levels, then 90/10 wage inequality would have been 25 per cent higher in 2012. Thus, changes in occupational characteristics have contributed to wage compression in the observation period.


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