Trade Shocks, Firm Hierarchies, and Wage Inequality

2020 ◽  
pp. 1-45
Author(s):  
Benjamin U. Friedrich
Keyword(s):  
Wage Inequality ◽  
Wage Gap ◽  
Firm Level ◽  
Production Scale ◽  
Trade Shocks ◽  
Knowledge Based ◽  
Research Designs ◽  
Pay Differences ◽  
Cartoon Crisis ◽  
Wage Cuts

This paper shows robust effects of trade shocks on within-firm wage inequality through changes in firm hierarchies. It uses two distinct research designs—one considering firm-level shocks to foreign demand and transportation costs, the other analyzing the Muslim boycott of Danish exports after the 2006 “Cartoon Crisis”. Consistent with knowledge-based and incentive-based hierarchy models, trade shocks affect organizational choices through production scale. Adding a hierarchy layer increases inequality throughout the organization, particularly widening the 90-50 wage gap and pay differences between top and bottom layers. Delayering after the boycott leads to wage compression through wage cuts, demotions, and employee turnover.

The gender wage gap in the workplace: Does the age of the firm matter?

2019 ◽  
Vol 26 (2) ◽  
pp. 123-137 ◽  
Author(s):  
Ewa Cukrowska-Torzewska ◽  
Iga Magda
Keyword(s):  
Wage Inequality ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
European Countries ◽  
Gender Pay Gap ◽  
Firm Level ◽  
Pay Gap ◽  
Central European ◽  
Eu Member States ◽  
Gender Wage Inequality

We contribute to the literature on firm-level determinants of gender wage inequality by studying the link between a firm’s age and the size of its gender pay gap. Using European Structure of Earnings data for eight European countries, we find that in all these countries, the gender wage gaps are smallest in the youngest firms. Our results also show that in Central European countries, the size of the gender pay gap clearly increases with the age of the company; whereas in the older EU member states such link is not as apparent. Levels of gender wage inequality appear to be highest in companies that were previously state owned but were privatized during the transition. We interpret our findings with the support of competition and monopsony theories.

Glass Ceilings in Portugal?

2010 ◽  
Vol 1 (2) ◽  
pp. 1-18 ◽  
Author(s):  
Raquel Mendes
Keyword(s):  
Wage Inequality ◽  
Glass Ceiling ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Gender Segregation ◽  
Ceiling Effect ◽  
Wage Distribution ◽  
Women's Wages ◽  
Gender Based ◽  
Women's Role

Despite the evidence of female progress with regard to women’s role in the labor market, gender inequality remains. Women are still less likely to be employed than men, occupational gender segregation continues, and females continue to earn less than males. The gender wage gap remains wide in several occupational sectors, among which is the information technology (IT) sector. This paper focuses the determinants of gender wage inequality. More precisely, it investigates for statistical evidence of a glass ceiling effect on women’s wages. Based on the quantile regression framework, the empirical analysis extends the decomposition of the average gender wage gap to other parts of the earnings distribution. The main objective is to empirically test whether gender-based wage discrimination is greater among high paid employees, in line with glass ceiling hypothesis. Larger unexplained gaps at the top of the wage distribution indicate the existence of a glass ceiling effect in Portugal.

scholarly journals Manufacturing and agricultural pollution, private mitigation and wage inequality in the presence of pollution externalities

2019 ◽  
Vol 65 (No. 2) ◽  
pp. 51-58
Author(s):  
Dianshuang Wang
Keyword(s):  
Wage Inequality ◽  
Agricultural Production ◽  
Wage Gap ◽  
The Self ◽  
Agricultural Pollution ◽  
Mitigation Cost ◽  
Unskilled Labour ◽  
Agricultural Pollutants ◽  
Environmental Protection Policies ◽  
The Impact

The paper incorporates manufacturing and agricultural pollution into a three-sector general equilibrium model with pollution externalities both on agricultural production and labour health. Manufacturing generates pollution that affects agricultural production and health, while agriculture employs the pollutant as a factor for production that only affects health. Under the framework, this paper investigates the impacts of environmental protection policies and a rise in the self-mitigation cost of skilled and unskilled labour on wage inequality. A larger environmental tax expands wage gap if partial elasticity of substitution between labour and dirty input in the urban unskilled sector is small enough. More restrictive agricultural pollutants control narrows down the wage gap. The impact of an increase in the self-mitigation cost of skilled labour on wage inequality is ambiguous, depending on the factors substitution in agriculture and the elasticity of manufacturing pollution on agricultural production, while a larger self-mitigation cost of unskilled labour brings down the wage gap.

scholarly journals DIRECTED TECHNOLOGICAL CHANGE: A KNOWLEDGE-BASED MODEL

2013 ◽  
Vol 19 (1) ◽  
pp. 116-143 ◽  
Author(s):  
Tailong Li ◽  
Shiyuan Pan ◽  
Heng-fu Zou
Keyword(s):  
Technological Change ◽  
Wage Inequality ◽  
Scale Effects ◽  
Developed Countries ◽  
Skilled Workers ◽  
Developed Country ◽  
Knowledge Based ◽  
Biased Technological Change ◽  
Unskilled Workers ◽  
Directed Technological Change

In a knowledge-based growth model where skilled workers are used in innovation and production, skill-biased technological change may lower average R&D productivity via an innovation possibilities frontier effect that eliminates scale effects. We show that skill-biased technological change increases the skill premium even if the elasticity of substitution between skilled and unskilled workers is less than two. Trade between developed countries promotes skill-biased technological change, thus raising wage inequality. Trade between developed and developing countries has differing effects: it induces relatively skill-replacing technological change and lowers wage inequality in the developed country but has the opposite effects in the developing country. Finally, we show that trade can stimulate or hurt economic growth.

Globalization and Wage Inequality in the Canadian Manufacturing Sector: A Time Series Analysis

2006 ◽  
Vol 6 (2) ◽  
pp. 1850085 ◽  
Author(s):  
Gilles Grenier ◽  
Akbar Tavakoli
Keyword(s):  
Time Series ◽  
Wage Inequality ◽  
Wage Gap ◽  
Manufacturing Sector ◽  
Harmful Effect ◽  
Union Density ◽  
Skilled Workers ◽  
Capital Labor Ratio ◽  
Investment Capital ◽  
Canadian Manufacturing

The deteriorating economic position of low-skilled workers relative to high-skilled workers appears to be one harmful effect of the economic globalization that took place during the 1980s and 1990s. In the present paper, we perform a time series investigation for Canada using as the dependent variable the relative wages of production and non-production workers in the manufacturing sector between 1970 and 2001. The independent variables include R&D, union density, immigration, imports from non-OECD countries, foreign direct investment, capital labor ratio, and number of workers in each group. The results show that the R&D expenditures and union density are two important variables in the explanation of the widening wage gap. The effects of immigration, imports, and FDI on wage inequality are found to be moderate.

scholarly journals The Source of Output Growth: Productivity Performance in the Indonesian Crude Palm Oil Industry

2021 ◽  
Vol 56 (2) ◽  
pp. 405-418
Author(s):  
Dyah Wulan Sari ◽  
Haura Azzahra Tarbiyah Islamiya ◽  
Wenny Restikasari ◽  
Emi Salmah
Keyword(s):  
Palm Oil ◽  
Productivity Growth ◽  
Oil Industry ◽  
Global Market ◽  
Output Growth ◽  
Crude Palm Oil ◽  
Firm Level ◽  
Production Scale ◽  
The World ◽  
The Government

Indonesia has become the largest producer and exporter of crude palm oil commodities in the world. Therefore, the production of CPO turns out to be very greedy for land. There are any problems in production CPO, therefore the study aims to develop a conceptual framework of the source of output growth, whether driven by input or productivity growth, and to implement this concept by investigating the source of output growth in the crude palm oil industry in Indonesia. The investigation applies firm-level panel data and follows a quantitative approach using general method of moments to estimate the production coefficients and calculate the input and productivity growth. The result shows that the output growth of the crude palm oil industry does not lead in productivity growth driven. It seems to be driven by input growth, not by productivity growth. Since growth is still driven by input, the crude palm oil industry will be less competitive in the world market. The high world demand for crude palm oil commodities from Indonesia must be met by using more efficient input factors, optimizing production scale, and supporting technological progress. The government, therefore, must have strategies that are more competitive in the global market.

scholarly journals Social Connections and Racial Wage Inequality

2020 ◽  
Author(s):  
Nicholas H Tenev
Keyword(s):  
Wage Inequality ◽  
Job Search ◽  
Wage Gap ◽  
Social Connections ◽  
Search Model ◽  
Black Workers ◽  
The Us ◽  
Racial Wage Gap ◽  
The Difference ◽  
Individual Human

How much of the wage gap between black workers and others in the US owes to differences in jobs found through social connections? Panel data from the NLSY79 are used to estimate a job search model in which individual human capital is distinguished from social capital by comparing the wages and frequency of jobs found directly with those of jobs found through friends. Jobs found through friends tend to pay more, but this premium is lower for black workers; the difference can account for 10% of the racial wage gap.

Is there less gender inequality in the service sector? The gender wage-gap in knowledge-intensive services

2015 ◽  
Vol 54 (3) ◽  
pp. 369-393 ◽  
Author(s):  
Diego Dueñas-Fernández ◽  
Carlos Iglesias-Fernández ◽  
Raquel Llorente-Heras
Keyword(s):  
Information And Communication Technologies ◽  
Gender Inequality ◽  
Wage Inequality ◽  
Service Sector ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Communication Technologies ◽  
Information And Communication ◽  
Knowledge Intensive ◽  
The One

The expansion of services and the dissemination of information and communication technologies (ICTs) are identified as important factors for improving employment opportunities for women, reducing labour differences by gender. The objective of the study is to determine to what extent services, and especially those most closely linked with knowledge and ICTs such as knowledge-intensive services (KIS), are changing some of the basics of labour gender differences. To do this, first we measure and characterize employment related to the service sector and KIS, comparing the existing gender wage-gap in these activities with the one observed in the overall economy. Then we carry out an analysis of decomposition over these gaps (in term of total distribution of wages and by quantiles). Our results indicate that, although KIS improve the wage situation of women, they are unable substantially to reduce gender wage inequality in the Spanish labour market, perhaps because the same gendered structures of the workplace are replicated in the KIS activities.

Gender Pay Gap in India: A Reality and the Way Forward—An Empirical Approach Using Quantile Regression Technique

2021 ◽  
pp. 232102222199567
Author(s):  
Pooja Sengupta ◽  
Roma Puri
Keyword(s):  
Wage Inequality ◽  
Wage Gap ◽  
Empirical Work ◽  
Personal Characteristics ◽  
Personal Characteristic ◽  
Least Square ◽  
Pay Gap ◽  
Personal Traits ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression

There is a growing body of empirical work on gender studies that mostly focus on the gender-wise representation of individuals in different sectors. One such study is the wage gap attributed to gender. In this article, we have tried to focus on a detailed study of the gender wage gap in the Indian context. The study was carried out on the most recent Employment–Unemployment Survey carried out by NSS for the year 2012. The study was based on the personal characteristics as well as the characteristics of the job undertaken by the employees. Ordinary least square regression and linear quartile regression model were used for analysis. In our study we have come up with a few interesting determinants of wage inequality based mostly on the personal traits. For women, personal characteristic like age was highly significant determinant of wage whereas in case of men more industry specific determinants were significant. JEL Classifications: C01, C10, J16, J31

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