scholarly journals Employment protection and gender wage gap in Europe

2020 ◽  
Vol 67 (2) ◽  
pp. 139-165 ◽  
Author(s):  
Cristiano Perugini

In this paper we investigate gender wage disparities in 25 EU countries before and after the crisis, focusing on the role employment protection legislation played in shaping the gap across the wage distribution. Results of quantile regressions reveal a remarkable cross-country diversity in the size of the gap and confirm the widespread existence of glass-ceiling effects. Stricter rules for temporary contracts mitigate the gender gap, especially at the top of the distribution; stronger protection for permanent workers is found to increase the gap at the bottom of the distribution and to decrease it at the middle and at the top.

2019 ◽  
Vol 41 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Patrizia Ordine ◽  
Giuseppe Rose ◽  
Gessica Vella

Purpose The purpose of this paper is to evaluate the impact of more stringent Employment Protection Legislation on employment outflows and wages of women compared to those of men. Design/methodology/approach The authors exploit the Italian labor market reform of 1990 that raised firing costs for firms with less than 15 employees leaving unchanged existing rules for larger firms. The authors setup a natural experiment using this firm size threshold to examine if an increase of severance pay in small relative to large firms has a different impact on labor flows and earnings by gender. Using administrative linked employer–employee data, the authors find a significant reduced flow out of employment of women with respect to men in small relative to large firms after 1990. Findings The results also indicate a reduction of the gender wage gap after the reform of about 1.5 percent. These findings are statistically significant for women in fertility age and disappear if we consider older women. Originality/value The findings are consistent with the idea that employment protection may help in reducing gender disparities.


2019 ◽  
Vol 40 (7) ◽  
pp. 1319-1346
Author(s):  
Xisco Oliver ◽  
Maria Sard

Purpose The purpose of this paper is to analyse the wage gap between temporary and permanent workers across the whole wage distribution, not just at the mean, and the evolution before and after the Great Recession on this gap in Spain. Design/methodology/approach An extended Mincer-type wage equation is estimated using ordinary least square regression and unconditional quantile regression. Then, the decomposition of the wage gap between workers with fixed-term and permanent contracts for each quantile is made using the Fortin, Lemieux and Firpo decomposition. Findings The results show that two workers, with identical characteristics, earn different salaries if they have a different type of contract. However, the wage gap is not constant across the wage distribution. The penalty for temporary workers is wider for higher wages. Moreover, the main part of the gap is due to observed characteristics, but other factors (unobserved characteristics and discrimination) become more relevant in the upper part of the wage distribution. Originality/value The study expands upon available studies for Spain in two points. First, it is the first paper to the knowledge that analyse both the wage gap between temporary and permanent workers across the wage distribution and its decomposition. Second, the paper explores what happened before and after the Great Recession. In the years that the paper analyses there is also a labour market reform.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Rosso

PurposeThe paper aims at examining wage developments among Eastern European immigrants vs UK natives before and after the 2004 enlargement by measuring the extent to which inter-group wage differentials are explainable by these groups' changing attributes or by differences in returns to these characteristics. The enlargement has been a defining moment in British recent history and may have contributed to the unfolding of the events that have culminated in Brexit.Design/methodology/approachThe paper uses a quantitative analysis of the immigrant–native wage gap across the entire distribution by applying the methodology known as the unconditional quantile regression. The analysis is performed before and after the 2004 European Union enlargement to Eastern countries. The data used is the British Labour Force Survey (UK LFS) from 1998 to 2008.FindingsAt all distribution points, a major role is played by occupational downgrading, which increases over time. The results further suggest that the decreased wage levels at the top of the distribution stem mainly from low transferability of skills acquired in the source country.Research limitations/implicationsThe UK LFS does not allow to follow individuals for a long period of time. For this reason, the main limitation of the study is the impossibility to measure for individual-level trajectories in their labour market integration and to account for return migration.Originality/valueThe analysis provides a detailed picture of the wage differences between Eastern European immigrants and natives along the whole wage distribution. The paper also identifies possible causes of the wage gap decrease for EU8 immigrant workers after 2008.


Author(s):  
Elisabeth T. Pereira ◽  
Stefano Salaris

The role of women in labor markets has been characterized by great changes in the last century, with gender inequalities decreasing in most developed countries. The stereotypes related to women in labor markets have been hard to break within social norms and cultures. Many efforts have been made in recent decades by governments and national and international institutions to decrease and promote women's empowerment and gender equality in labor markets. This chapter has as its main purposes to provide an overview of the evolution of the role of women in labor markets in developed countries and to investigate this evolution based on a set of variables: gender participation rates, education, employment, the gender gap in management, wages and the gender wage gap, and public policies and laws. However, despite the positive evolution of the participation rate of women in labor markets that has been observed in recent decades, gender inequalities still persist.


Author(s):  
Ines Bouassida ◽  
Abdel-Rahmen El Lahga

The dysfunction of the Tunisian labor market is exacerbated particularly by the segmentation between public and private sector employment. These different segments differ in terms of returns to human capital, social protection and mobility, affecting career development and the wage structure in the economy. In this chapter, we present the patterns of wage distribution in Tunisia across important socioeconomic groups and a detailed analysis of the wage gap between public and private sectors. Our results show particularly that while in the bottom sector of the wage distribution the positive wage gap between public and private sectors is mainly attributable to the composition or characteristics of workers, the wage gap in the upper sector of the distribution is due to returns to characteristics effect. The public-sector wage premium explains the strong preference in public positions.


Author(s):  
Daniela Bellani ◽  
Giulio Bosio

Abstract This article reframes the debate on the consequences of flexibilization in European labour markets focusing on the unexplored impact of temporary employment on occupational wages for permanent workers. Exploiting the variation in the temps’ density within occupation and age groups across European countries between 2003 and 2010, we find that temporary contracts negatively affect occupational average wages for insiders’ workers. These results are still robust using a dynamic system based on generalized method of moments (GMM-SYS) to account for potential endogeneity issues. We also explore the existence of heterogeneity across different occupational clusters and institutional settings. Our estimates indicate that the knock-on effect is large in countries with low employment protection legislation and it is driven by occupations characterized by untechnical work logics.


2007 ◽  
Vol 46 (4II) ◽  
pp. 865-882 ◽  
Author(s):  
Muhammad Sabir ◽  
Zehra Aftab

One of the main caveats of Pakistan’s economic development history is the persistence of gender inequality with respect to almost all socioeconomic indicators. For instance, Pakistan ranks 66, out of 75 countries, with respect to the Gender Empowerment Measure (Human Development Report, 2006) with a GEM value of 0.377, largely a manifestation of very low estimated female to male earned income ratio, which is a depressing 0.29. GEM and other labour force statistics confirm the gender gap in labour force participation. One of the possible explanations of this gender gap is gender discrimination in the labour market, particularly in wages. Evidence with respect to gender discrimination in Pakistan’s labour market is welldocumented. Siddique, et al. (2006), Nasir and Nazli (2000), Siddique, et al. (1998) and Ashraf and Ashraf (1993) all confirm that men earn higher wages than women even after controlling for measurable characteristics affecting their productivity. These studies, however, analyse the gender wage gap by comparing the mean male/female wage. Studies which compare the gender wage gap at different points along the wage distribution are not available for Pakistan.


2018 ◽  
Vol 60 (5) ◽  
pp. 619-646 ◽  
Author(s):  
Alison Preston ◽  
Elisa Birch

Whilst there is a large literature on the determinant of wages in Australia, relatively few studies have examined the determinants of wages at a state level. In this article, we present a study of the determinants of earnings in Western Australia, a state that experienced rapid growth during the mining boom of 2003–2013. We show that the relatively stronger wage growth in Western Australia since 2001 is the product of both compositional and price effects. We also report on the Western Australia and rest of Australia gender wage gaps. Our decomposition analysis of the mean gender wage gap shows that industry effects (as a result of gender segmentation across industry) account for a much larger share of the Western Australia gender wage gap than they do elsewhere in Australia, with the mining, construction and transport sectors driving the industry effects. Using quantile analysis we show that, relative to the rest of Australia, the Western Australia gender wage gaps are larger at both the bottom and the top of the wage distribution. At the median the Western Australia gender wage gap, at 2014–2016, is on par with that prevailing elsewhere in Australia, with women in both groups earning 10% less than their male counterparts, all else held equal.


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