Dimensions of Informality in Bangladesh Labour Market and the Consequent Wage Penalty

2019 ◽  
Vol 20 (2) ◽  
pp. 224-247 ◽  
Author(s):  
Mustafizur Rahman ◽  
Debapriya Bhattacharya ◽  
Md Al-Hasan
Keyword(s):  
Labour Market ◽  
Wage Differential ◽  
Labour Force ◽  
Job Characteristics ◽  
Wage Gaps ◽  
Wage Penalty ◽  
Market Segments ◽  
Formal Employment ◽  
Underlying Causes ◽  
Quantile Decomposition

The article examines the various dimensions and underlying causes of informal employment in the Bangladesh labour market and the associated wage penalty. Based on labour force survey data for successive points, we trace the dynamics of employment in Bangladesh along the informal–formal divide over time. Given that wage differential remains a key feature concerning the two market segments, we have carried out mean and quantile decomposition exercises to estimate the wage penalty originating from informality. We find significant wage gaps between formal- and informal-paid employees, formal paid and informal day labour, and formal paid and informal self-employed. The wage gaps range between 65.0 per cent and 225.0 per cent. The gap arises from a combination of observed differences in human capital and job characteristics, and the wage premium accruing from formal employment. JEL: C21, J31

DETERMINANTS OF EMPLOYEES' MOVEMENT BETWEEN LABOUR MARKET SEGMENTS

2021 ◽  
Vol 572-573 (11-12) ◽  
pp. 24-31
Author(s):  
Łukasz Arendt ◽  
Wojciech Grabowski
Keyword(s):  
Labour Market ◽  
Choice Model ◽  
Labour Force ◽  
Supply And Demand ◽  
Wage Distribution ◽  
Market Theory ◽  
Market Segments ◽  
Close Proximity ◽  
Sectoral Differences ◽  
Binary Choice Model

The paper studies upgrading patterns between secondary and primary segments in Polish labour market, with reference to the Segmented Labour Market theory. The type of contact (permanent vs. fixed-term) and wage distribution were used within one framework to define these labour segments. The parameters of binary choice model, based on Labour Force Survey microdata, were estimated to calculate the probabilities of shift from secondary to primary segment, and to identify supply and demand-side determinants of this upgrading. The results are, in general, in line with the trap hypothesis, pointing out to limited chances of upward shift from secondary to primary labour segment. However, this upward mobility has increased in recent years, being a result of changes in real (measured by lowering unemployment rate) and institutional sphere of the Polish labour market. Individual’s age, education attainment, propensity to invest in human capital, as well as the size of an enterprise appeared to be the most important divers of inter-segments upgrading. Moreover, regional as well as sectoral differences in probability of upgrading were identified – this probability was higher in the case of workers living in regions with large agglomerations and close proximity to the German labour market.

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 Employers Size Wage Differential: Does Investment in Human Capital Matter?

2009 ◽  
Vol 48 (4II) ◽  
pp. 509-521 ◽  
Author(s):  
Zafar Mueen Nasir ◽  
Nasir Iqbal
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Capital Investment ◽  
Wage Differential ◽  
Labour Force ◽  
Jel Classification ◽  
Policy Implications ◽  
Strong Positive Relationship ◽  
The Government ◽  
Areas Of Interest

Wage differential due to employer size is one of the key areas of interest in labour market research because a strong positive relationship between employer size and wages has been observed in developed and developing countries. It is, however, relatively neglected area of research in Pakistan. The purpose of present study is to investigate the employer size wage differential by looking at human capital factors. The study is based on standard methodology and estimates earning functions on Labour Force Survey (LFS) data for year 2007-08. Results clearly show that human capital investment has a bigger role in determining wages in the larger firms as compared to smaller firms. The main policy implications emanating from the analysis are the higher investment in skill which increases opportunities for workers in the labour market for higher wages and for jobs with good characteristics especially in large sized firms. The government policy towards education and skill formation needs serious reforms and better allocation of funds so that people get chance to enhance their skill level hence wages. JEL classification: J31, J40, J24 Keywords: Wage Differential, Human Capital, Labour Market

Female employment in India: determinants of choice of sector of activity

2019 ◽  
Vol 46 (3) ◽  
pp. 748-759
Author(s):  
Sandhya Mahapatro
Keyword(s):  
Labour Market ◽  
Labour Force ◽  
Multinomial Logit Model ◽  
National Sample ◽  
Female Employment ◽  
Sample Survey ◽  
Socioeconomic Condition ◽  
Content Type ◽  
Unpaid Labour ◽  
Formal Employment

Purpose The purpose of this paper is to examine whether the choice of employment sector for women is driven by the structure of the labour market or determined by the household socioeconomic condition. Design/methodology/approach Data for the study were drawn from the National Sample Survey 68th round (2011–2012). The sector of employment was assessed through females’ participation as an unpaid labour, employer/own account worker, informal wage worker, formal wage worker and unemployed. A multinomial logit model was used to examine the factors that determine the sector of employment. Findings Although education increases formal employment among women, most of them are unemployed or entering into informal employment. It indicates that the labour market has not been able to integrate educated women into formal employment. Research limitations/implications Increase in female education accompanied by a slow growth of employment creates the challenge to accommodate the educated and skilled women in formal employment. Originality/value This study examines the factors determining the sectoral participation of employment to assess the responses of the current labour market for the females, especially educated females who have not been adequately addressed. The findings of the study have significant implications for formulating appropriate labour market policies for the educated female labour force.

Tertiary Educated Muslim Women's Work Decision

2015 ◽  
Vol 3 (2) ◽  
pp. 46
Author(s):  
Peck Leong Tan ◽  
Muhammad Adidinizar Zia Ahmad Kusair ◽  
Norlida Abdul Hamid
Keyword(s):  
Labour Market ◽  
Work Environment ◽  
Capital Investment ◽  
Labour Force ◽  
Muslim Women ◽  
Participation Of Women ◽  
Flexible Working ◽  
Family Friendly ◽  
The Family ◽  
Labour Participation

The participation of women in the labour force has been steadily rising over the years, especially with tremendous human capital investment in educating more women at tertiary levels. However, the tertiary educated women labour participation remains low, particularly among Muslim women. Therefore, this paper explores how tertiary educated Muslim women make their decision to work. This study surveyed 139 tertiary educated women and found their decisions to work are affected by their families’ needs and/or responsibilities, and may not be due to their lives’ goals and dreams. The majority of them work for the sake of money and hence will work if offered jobs meet their expectations in term of salary and position. Furthermore, they will leave the workforce if they need to fulfil their responsibilities at home. Therefore, to retain or to encourage more women especially those with high qualifications to be in the labour market, stakeholders must provide family-friendly jobs and suitable work environment such as flexible working arrangements. More importantly, stakeholders must be able to convince the family members of tertiary educated women to release them to the labour market.   

scholarly journals Granger Causal Nexus between Good Public Governance and Unemployment: Evidence from Cross-Country Panel Data Investigation

2021 ◽  
Vol 14 (2) ◽  
pp. 63
Author(s):  
Cristina Boţa-Avram ◽  
Adrian Groşanu ◽  
Paula-Ramona Răchişan ◽  
Sorin Romulus Berinde
Keyword(s):  
Labour Market ◽  
Labour Force ◽  
Public Governance ◽  
Country Level ◽  
Governance Indicators ◽  
Causality Tests ◽  
Data Investigation ◽  
Labour Market Activity ◽  
Causal Nexus ◽  
Total Labour

The purpose of this paper is to investigate the causality between good public governance captured through six World Bank governance indicators and unemployment rate (unemployment as % of the total labour force) as a clear indicator of labour market performance. Although some previous papers have empirically demonstrated the casual nexus between country-level governance and economic development, this study investigates the relation of causality between public governance and the labour market. By employing Granger non-causality tests, we tested two hypotheses with regard to this nexus. We argue that bidirectional Granger causality is predominant for the relation of country-level governance and unemployment. Finally, our paper offers a complex quantitative analysis of the causal nexus between public governance quality and one of the most known labour market activity indicators for an extended panel dataset of countries worldwide for 10 years.

Dealing with ‘vulnerable workers’ in precarious employment: Front-line constraints and strategies in employment standards enforcement

2020 ◽  
pp. 0143831X2090914
Author(s):  
Alan Hall ◽  
Rebecca Hall ◽  
Nicole Bernhardt
Keyword(s):  
Labour Market ◽  
Labour Force ◽  
Front Line ◽  
Canadian Province ◽  
Precarious Employment ◽  
Employment Relationships ◽  
The Core ◽  
Worker Characteristics ◽  
Employment Standards ◽  
Vulnerable Workers

Individual worker complaints continue to be the core foundation of employment standards enforcement in many Western jurisdictions, including the Canadian province of Ontario. In the contemporary labour market context where segments of the labour force may be disproportionately impacted by rights violations, and employment relationships are more diverse and often more tenuous than previously, the continued reliance on individual claims suggests a need to better understand the challenges associated with the investigation and resolution of claims involving ‘vulnerable workers’ in precarious employment situations. Using interviews with front-line Ontario employment standards officers (ESOs), this article examines the extent to which certain worker characteristics and employment situations perceived by officers as ‘vulnerable’ are identified by officers as significant constraints or barriers to investigation processes and outcomes, and documents whether and how officers address these constraints and barriers. The analysis also identifies the perceived influence of policy, resource and legislative requirements in shaping how officers deal with the more difficult and challenging cases, while also considering the extent to which the officers’ actions are understood by them as discretionary and guided by their particular orientations or concerns. In so doing, this article reveals challenges to the resolution of claims in precarious employment situations, the very place where employment standards are often most needed.

scholarly journals Demographics, Migration and Brain Drain in The Danube Region

2016 ◽  
Vol 54 (4) ◽  
pp. 469-483
Author(s):  
Mirko Savić ◽  
Stojanka Dakić
Keyword(s):  
Labour Market ◽  
Brain Drain ◽  
Labour Force ◽  
Working Life ◽  
Demographic Situation ◽  
Demographic Indicators ◽  
Active Labour ◽  
Danube Region ◽  
Migration Flows ◽  
Market Variables

AbstractIn the last two decades we have been witnessing the decrease of population in many countries of the Danube Region. All demographic indicators are unfavourable. Current demographic situation and labour market in the countries of the Danube Region is presented. The purpose of this paper is to evaluate the effects of demographic decline in the countries of the Danube Region on the key labour market variables and to model their behaviour. Also, the purpose of this paper is to analyse and discuss the possible consequences of demographic decline and the roles of migration and brain drain in the region. The main conclusion is that drop in the population growth is compensated with migration flows and prolongation of working life when it comes to the active labour force in the Danube Region, although population is still a main source of working force.

Helpt kinderopvang de herintreding van moeders stimuleren?

2006 ◽  
Vol 22 (3) ◽  
Author(s):  
Didier Fouarge
Keyword(s):  
Panel Data ◽  
Young Children ◽  
Labour Market ◽  
Significant Role ◽  
Labour Force ◽  
Market Participation ◽  
Labour Market Participation ◽  
Regional Demand ◽  
Positive Effect ◽  
Formal Childcare

Does more childcare stimulate mothers to re-enter the labour market? Does more childcare stimulate mothers to re-enter the labour market? Previous research has shown that the supply of formal childcare facilities has a positive effect on the labour market participation of mothers with young children. When the supply of childcare facilities is higher, the probability that a female keeps on working after the birth of a child is larger. But does childcare also helps non-working mothers to join the labour force? This research shows that it is not the case. The research was carried out on administrative panel data to which data on the regional supply of childcare and the regional demand for labour were matched. It shows that the supply of childcare does not play a significant role in the re-entry in the labour market of mothers. The age of the child and the demand for labour in the region play an important role.

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