A note on the gender reservation wage gap in developing countries

2020 ◽  
Vol 67 (5) ◽  
pp. 462-468
Author(s):  
Bilal Muhammad Khan ◽  
Muhammad Farhan Majid
Keyword(s):  
Developing Countries ◽  
Wage Gap ◽  
Reservation Wage

scholarly journals EFFECT OF WAGES ON MULTIPLE JOB HOLDING DECISIONS IN INDONESIA: EVIDENCE FROM THE INDONESIAN FAMILY LIFE SURVEY (IFLS) DATA OF 2007 AND 2014

2018 ◽  
Vol 33 (1) ◽  
pp. 1
Author(s):  
Niken Dwi Wijayanti ◽  
Vid Adrison
Keyword(s):  
Developing Countries ◽  
Family Life ◽  
Developed Countries ◽  
Multinomial Logit ◽  
Wage Increase ◽  
Reservation Wage ◽  
Job Status ◽  
The Past ◽  
Indonesian Family Life Survey ◽  
Wage Increases

Multiple job holding - i.e., a phenomenon in which workers have more than one job has become a trend in developed countries and is beginning to occur in developing countries, such as Indonesia. Existing studies provide the evidence that wages are a significant and consistent criterion to determine multiple job decisions. Wage increases in the primary job will decrease the incentive to have a second job as the reservation wage increases. However, we do not find any study which links the current multiple job decision with the past multiple job status. In this study, we use data from the Indonesian Family Life Survey (IFLS) in 2007 and 2014 to investigate whether or not a wage increase in the primary job reduces the incentive to have a second job in 2014, controlling for the multiple job status in 2007. Using logit and multinomial logit estimations, we find that the wage increase in the primary job decreases the probability of having a second job in 2014.

scholarly journals Trade costs, global value chains and economic development

2018 ◽  
Author(s):  
Yuan Zi
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Value Chain ◽  
Wage Gap ◽  
Global Value Chains ◽  
Trade Costs ◽  
Value Chains ◽  
Trade Frictions ◽  
The Impact ◽  
North And South

Abstract This paper develops a model to study the impact of trade costs on developing countries’ industrialization when sequential production is networked in global value chains (GVCs). In a two-country setting, a decrease in trade costs of intermediates is associated with South joining and moving up the value chain and both North and South experiencing a welfare improvement. The wage gap between North and South first increases and then decreases. Extending the model to a multi-country setting, I show that reduced trade frictions lead to South countries joining GVCs due to wage differentials and low trade costs. This increases the wage in North but may decrease the wages of South countries that are already part of the network. Moreover, South countries that join tend to be regionally clustered. The model provides a first look at GVCs from the development angle, and raises policy questions regarding the governance of GVCs.

scholarly journals Foreign Capital Inflow, Skilled-Unskilled Wage Gap, and Welfare in the Presence of the Informal Sector

2004 ◽  
Vol 43 (2) ◽  
pp. 125-147
Author(s):  
Kausik Gupta ◽  
Tania Basu
Keyword(s):  
Developing Countries ◽  
Informal Sector ◽  
Intermediate Product ◽  
Foreign Capital ◽  
Wage Gap ◽  
Full Employment ◽  
Capital Inflow ◽  
Trade Liberalisation ◽  
Informal Labour ◽  
The Impact

This paper attempts to analyse the impact of trade liberalisation on the skilledunskilled wage gap and the level of welfare of developing countries, which are generally characterised by large “informal” labour markets. A neo-classical full-employment foursector model has been developed, where the informal sector produces either a final product or an intermediate product on subcontracting basis. Evidence shows that in either case, trade liberalisation, in the form of an increase in foreign capital inflow, widens the skilled-unskilled wage gap of the economy under some reasonable conditions. It also shows that as a result of an increase in the foreign capital inflow, the level of welfare of the economy increases, when the informal sector produces a final product. However, when the informal sector produces an intermediate product on subcontracting basis, the level of welfare of the economy falls.

scholarly journals Is The Level Of Development Significant For The Theory Of Factor Price Equalization?

2011 ◽  
Vol 3 (2) ◽  
Author(s):  
Giuliana Campanelli Andreopoulos ◽  
Alexandros Panayides
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Wage Gap ◽  
Main Idea ◽  
Global Markets ◽  
Factor Price ◽  
Industrialized Countries ◽  
Unskilled Labor ◽  
Factor Price Equalization ◽  
Skilled And Unskilled Labor

The vast part of the literature on wages and employment in global markets focuses on international trade considerations and on industrialized countries, often leaving aside developing countries experiences. The scope of this paper is to examine wages and employment in global markets from a different perspective: we try to combine international trade considerations (trade liberalization) with domestic factors in developing countries. The main idea behind this approach is that the level of development and the complementarity between skilled and unskilled labor are crucial to understand changes in employment and the wage gap.

scholarly journals Motherhood Wage Penalties in Latin America: The Significance of Labor Informality

Social Forces ◽  
2019 ◽  
Vol 99 (1) ◽  
pp. 59-85 ◽  
Author(s):  
Aida Villanueva ◽  
Ken-Hou Lin
Keyword(s):  
Developing Countries ◽  
Latin American ◽  
Wage Gap ◽  
Developed Countries ◽  
Wage Penalty ◽  
Childless Women ◽  
Motherhood Wage Penalty ◽  
Wage Penalties ◽  
Intervening Factors ◽  
Latin American Countries

Abstract revious research has established the presence of a motherhood wage penalty in many developed societies; however, whether mothers face similar disadvantages in developing countries remains underexplored. This article argues that different intervening factors emerge when considering mothers’ labor compensation in developing contexts. Labor informality, a key characteristic of labor markets in developing countries, could play a significant role in shaping the wage consequence of motherhood. Using microdata from 43 national household surveys conducted between 2000 and 2017, we analyze five Latin American countries: Argentina, Brazil, Chile, Mexico, and Peru. After accounting for selection into employment and human capital, we find that mothers receive lower wages than childless women in all five countries. The penalties are similar to those found in some developed countries, ranging from 12 percent in Brazil to 21 percent in Chile. Mothers’ higher likelihood to work in the informal sector accounts for part of the wage gap.

scholarly journals The gender reservation wage gap: Evidence from British Panel data

2011 ◽  
Vol 113 (1) ◽  
pp. 88-91 ◽  
Author(s):  
Sarah Brown ◽  
Jennifer Roberts ◽  
Karl Taylor
Keyword(s):  
Panel Data ◽  
Wage Gap ◽  
Reservation Wage

scholarly journals The Gender Reservation Wage Gap: Evidence Form British Panel Data

2011 ◽  
Author(s):  
Sarah Brown ◽  
Jennifer Roberts ◽  
Karl B. Taylor
Keyword(s):  
Panel Data ◽  
Wage Gap ◽  
Reservation Wage
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