Assortative Matching or Exclusionary Hiring? The Impact of Employment and Pay Policies on Racial Wage Differences in Brazil

2021 ◽  
Vol 111 (10) ◽  
pp. 3418-3457
Author(s):  
François Gerard ◽  
Lorenzo Lagos ◽  
Edson Severnini ◽  
David Card

We measure the effects of firm policies on racial pay differences in Brazil. Non-Whites are less likely to be hired by high-wage firms, explaining about 20 percent of the racial wage gap for both genders. Firm-specific pay premiums for non-Whites are also compressed relative to Whites, contributing another 5 percent for that gap. A counterfactual analysis reveals that about two-thirds of the underrepresentation of non-Whites at higher-wage firms is explained by race-neutral skill-based sorting. Non-skill-based sorting and differential wage setting are largest for college-educated workers, suggesting that the allocative costs of discriminatory hiring and pay policies may be relatively large in Brazil. (JEL J15, J24, J31, J41, J46, J71, O15)

2019 ◽  
Vol 11 (2) ◽  
pp. 74-113 ◽  
Author(s):  
Benjamin Bruns

Using linked employer-employee data for West Germany, I investigate the role of growing wage differentials between firms in the slowdown of gender wage convergence since the 1990s. The results show that two factors are at play: first, high-wage firms experience higher wage growth and employ disproportionately more men, and second, male firm premiums grow faster than female premiums in the same firms. These developments were catalyzed by a decline of union coverage, coupled with more firm-specific wage setting in collective bargaining agreements. Taken together, these conditions prevented the gender gap from narrowing by approximately 15 percent between the 1990s and 2000s. (JEL J16, J51, J31, J71)


Author(s):  
Daniel Bastian Lubis ◽  
Syamsul Hidayat Pasaribu ◽  
Muhammad Findi

The minimum wage setting policy as an effort to improve wage distribution and expected to reduce income inequality is still being a debate in the literatures. However, similar studies, especially those that examine the impact of establishing minimum wages on the conditions of wages for workers in different percentile groups, have not been widely practiced in Indonesia. This study aims to analyze the increase in effective minimum wages against the wage gap of workers in the period 2008-2017 in Java using the National Labor Force Survey (Sakernas) data. Through the OLS method, we find that the impact of minimum wages is not the same among percentile groups. The effective minimum wage has a negative impact on the wage 30th percentile group where an increase in effective wage will reduces the gap between the 30th percentile and the 50th percentile. We find different result on 60th percentile. On this percentile, the effective minimum wage will increases the gap between the 60th percentile and the 50th percentile, this result implies a spillover.


2018 ◽  
Author(s):  
François Gerard ◽  
Lorenzo Lagos ◽  
Edson Severnini ◽  
David Card

Author(s):  
Rebecca Cassells ◽  
Yogi Vidyattama ◽  
Riyana Miranti ◽  
Justine McNamara

Author(s):  
Wendy J. Schiller ◽  
Charles Stewart

This chapter integrates findings on indirect elections with current scholarship on the impact of the adoption of the Seventeenth Amendment and onset of direct elections. It constructs a comprehensive counterfactual analysis that helps demonstrate what the political outcomes would have been with direct elections in place since the founding, and in contrast, what Senate elections would look like after 1913 if indirect elections were still in place. It also addresses the question of whether U.S. senators represented states as units and responded to state governmental concerns more under the indirect system than they do under direct elections. It argues that indirect election had little impact on the Senate's overall partisan composition prior to 1913. Contrary to widespread belief, had direct election been in effect during the years immediately preceding the Seventeenth Amendment's passage, Republicans, not Democrats, would have benefited.


2012 ◽  
Vol 11 (3) ◽  
pp. 114-136 ◽  
Author(s):  
Shandre Mugan Thangavelu

This paper studies the trends of foreign immigrants in Asia and their effect on the growth of the Singapore economy. The paper also discusses the key labor market trends and the rationale for foreign workers in a small open economy like Singapore. Further, the paper highlights key simulations of the impact of foreign immigrants on output growth and wage gap for the Singapore economy by using Thangavelu's (2011) dynamic general equilibrium model. The study accounts for the flow of skilled and unskilled foreign workers on (a) steady-state growth; (b) the wage gap between the skilled and unskilled workers; and (c) innovation capabilities of the domestic economy. Further, the model also accounts for the contribution of immigrants on the welfare of the domestic economy through the immigration surplus that will accrue to the domestic economy.


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