The objective of this study was to empirically evaluate the returns to education of rural and urban labour markets workers in Tamil Nadu using the IHDS data with appropriate Econometric models. First, the present study estimated the earning functions of the rural and urban market's workers by OLS technique and standard Mincerian earning functions. Secondly, the quantile regression method was also used to examine the evolution of wage inequality. The findings of the study showed that the effects of education and experience on the log of hourly wages were positive, and these coefficients were statistically significant. The returns to education increased with the level of education and differed among the workers of rural and urban labour markets. The results showed that the rates of returns to primary, middle and higher secondary were higher in the urban market, whereas those of secondary and graduation were higher in the rural market. The study revealed that the effect of education was not the same across the rural and urban wage distribution. The rate of returns differed considerably within education groups across different quantiles of the wage distribution.
Abstract
We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.
This study concentrates on the effect of foreign ownership of companies on worker wage distribution. Using an innovative methodological approach that combines the Oaxaca–Blinder decomposition and the modified DiNardo et al. reweighting approach, we estimate the wage gap between domestic-owned and foreign-owned firms. The study confirms that firm ownership (domestic or foreign) influences the wage distribution of workers, as a worker employed in a foreign-owned firm earns, on average, 5 percent more than a matched worker in a domestic-owned firm with similar characteristics. We link that gap with an origin of foreign capital. This analysis demonstrates that the origin of capital has an impact on wage distribution in the firm and may affect wages in the whole section.
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.
Abstract This study contributes to the sparse literature on employment spillovers of minimum wages. We exploit the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution.
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.
The impact of a minimum wage change on the distribution of wages and household income
