War Mobilization and the Great Compression

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Carol A. Scotese
Keyword(s):  
Labor Market ◽  
Wage Inequality ◽  
Armed Forces ◽  
Return To Education ◽  
Wage Distribution ◽  
Elderly Workers ◽  
Female Wage ◽  
Labor Market Shocks ◽  
Market Shocks ◽  
War Mobilization

Abstract During the 1940s, the diversion of 55% of the workforce to wartime production, the induction of over 10 million young men into the armed forces, and the entry of millions of female, young, and elderly workers into the workplace subjected the labor force to large shocks. Also during the 1940s, the wage distribution compressed sharply and the returns to education fell. This paper uses wage changes between occupations to link wartime labor market shocks to the decline in the return to education and the decline in wage inequality. Wartime production favoring semi-skilled labor and the occupation-biased nature of the draft combined to compress both the lower and upper tails of the male wage distribution and the upper portion of the female wage distribution.

scholarly journals When Opportunity Knocks: Confronting Theory and Empirics About Dynamics of Gender Wage Inequality

2021 ◽  
Author(s):  
Joanna Tyrowicz ◽  
Lucas Augusto van der Velde
Keyword(s):  
Labor Market ◽  
Wage Inequality ◽  
Wage Gap ◽  
Structural Shocks ◽  
Labor Market Inequality ◽  
Short Run ◽  
Equal Work ◽  
Labor Market Shocks ◽  
Market Shocks ◽  
Selection Of

AbstractWe present empirical evidence that large structural shocks are followed by changes in labor market inequality. Specifically, we study short-run fluctuations in adjusted gender wage gaps (unequal pay for equal work) following episodes of structural shocks in the labor markets, using several decades of individual data for a wide selection of transition countries. We find that for cohorts who entered the labor market after the onset of transition. Labor market shocks lead to significant declines in the gender wage gap. This decrease is driven mostly by episodes experienced among cohorts who enter the labor market during the transition. By contrast, we fail to find any significant relation for cohorts already active in the labor market at the time of transition. We provide plausible explanations based on sociological and economic theories of inequality.

scholarly journals Trends in Wage Inequality in the Netherlands

De Economist ◽  
2021 ◽  
Author(s):  
Colja Schneck
Keyword(s):  
Labor Market ◽  
The Netherlands ◽  
Wage Inequality ◽  
Wage Distribution ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Educational Degree ◽  
Over Time

AbstractIn this paper I analyze changes in the wage distribution in the Netherlands. I use a matched employer-employee dataset that covers the population of employees. Wage inequality increases over the period of 2001–2016. Changes in between-firm wage components are responsible for nearly the entire increase. Increases in the variance of workers’ skills and increases in worker sorting and worker segregation explain the majority of the rise in the variance of wages. These changes are accompanied by a pattern where variation in educational degree and firm average wages become more correlated over time. Finally, it is suggested that labor market institutions in the Netherlands play an important role in mediating overall wage inequality.

scholarly journals Parents with an Unemployed Adult Child: Consumption, Income, and Savings Effects

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Kathryn Anne Edwards ◽  
Jeffrey B. Wenger
Keyword(s):  
Labor Market ◽  
Older Workers ◽  
Financial Support ◽  
Risk Sharing ◽  
Panel Study ◽  
Adult Child ◽  
Retirement Savings ◽  
Parent Outcomes ◽  
Labor Market Shocks ◽  
Market Shocks

AbstractThe risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this financial support is accompanied by adjustments to parental consumption, income, or savings behavior. With longitudinal data on mothers and children from the Panel Study of Income Dynamics, we use within-mother variation in behavior to identify the effect of a child’s labor market shock on parent outcomes. We find evidence of a decline in consumption, an increase in labor supply, and a decrease retirement savings, though the results are heterogenous among mothers. Our results point to aggregate inefficiencies and inequities that may result from family risk sharing.

The Effect of Labor Market Shocks Across the Life Cycle

2021 ◽  
Author(s):  
Kjell G. Salvanes ◽  
Barton Willage ◽  
Alexander Willén
Keyword(s):  
Labor Market ◽  
Life Cycle ◽  
Labor Market Shocks ◽  
Market Shocks

Labor Market Development in Brazil

2018 ◽  
Author(s):  
Celia Lessa Kerstenetzky ◽  
Danielle Carusi Machado
Keyword(s):  
Labor Market ◽  
Wage Inequality ◽  
Growth Rates ◽  
Driving Forces ◽  
Wage Distribution ◽  
Market Development ◽  
Gdp Growth ◽  
Growth Path ◽  
Formal Employment

After presenting general facts concerning the evolution of the labor market in Brazil over the 2004–2014 decade, this chapter documents the outstanding formalization process that took place, as well as its main consequences and driving forces. In this period, the Brazilian economy achieved sizable GDP growth rates. Although far below Chinese or Indian performances, in contrast to the experiences of the latter, Brazilian growth was notable for being (re)distributive (i.e. associated with important reductions in inequality). In particular, the new growth path was accompanied by a sustained expansion in formal employment, an increase in labor incomes, particularly of earnings at the bottom end of wage distribution, and a consistent decline in wage inequality. Thus, the chapter discusses some of the interventions that led to these achievements and the challenges now faced if these achievements are to be preserved or built upon.

scholarly journals Wage Inequality and Return to Education in Indonesia: Quantile Regression Analysis

2018 ◽  
Vol 7 (1) ◽  
pp. 27-44 ◽  
Author(s):  
Restuning Dyah Widyanti
Keyword(s):  
Quantile Regression ◽  
Wage Inequality ◽  
Equation Model ◽  
Return To Education ◽  
Wage Distribution ◽  
Increasing Trend ◽  
Quantile Regression Analysis ◽  
The Government ◽  
Quantile Regression Method ◽  
High Percentile

It is essential to the government to recognize the factors causing the increasing trend of income inequality in Indonesia since the Gini coefficient increased between 1996 and 2016. Moreover, wage inequality, which represented by high percentile and low percentile of income, also shows widening gap since 2003. This study focuses on the factors of wage inequality acceleration through the supply side approach that follows the Mincerian wage equation model. Specifically, this paper aims to investigate the association between the return to education and wage inequality in Indonesia. The quantile regression method is applied to compute the return on the investment at different points of the wage distribution. The main finding is that education contributes to an increasing wage inequality due to the significant variation in the rate of return to education in different quantile and as increasing wage dispersion within the same education.DOI: 10.15408/sjie.v7i1.6071

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