Globalisation and Wage Inequality: A Comparison of the Manufacturing Sector in Canada and the United States from 1970 to 2001

2009 ◽  
pp. 53
Author(s):  
Gilles Grenier ◽  
Akbar Tavakoli
Keyword(s):  
United States ◽  
Wage Inequality ◽  
Wage Gap ◽  
Manufacturing Sector ◽  
Harmful Effect ◽  
The United States ◽  
Technological Changes ◽  
Skilled Workers ◽  
The Impact ◽  
Economic Globalisation

This article compares Canada and the United States in terms of the evolution of the relative wages of production and non-production workers in the manufacturing sector. The results show that the wage ratio is affected by similar economic globalisation variables in each country. Other than technological changes, however, the overall effect of globalisation is more pronounced in Canada. Among economic globalisation variables, such as technological changes and imports from developing countries, the latter has had a less harmful effect on low-skilled workers in the United States than those in Canada. Among the other variables, the wage gap is more affected by union density in Canada. The impact of immigration is low in both countries.

Globalization and Wage Inequality in the Canadian Manufacturing Sector: A Time Series Analysis

2006 ◽  
Vol 6 (2) ◽  
pp. 1850085 ◽  
Author(s):  
Gilles Grenier ◽  
Akbar Tavakoli
Keyword(s):  
Time Series ◽  
Wage Inequality ◽  
Wage Gap ◽  
Manufacturing Sector ◽  
Harmful Effect ◽  
Union Density ◽  
Skilled Workers ◽  
Capital Labor Ratio ◽  
Investment Capital ◽  
Canadian Manufacturing

The deteriorating economic position of low-skilled workers relative to high-skilled workers appears to be one harmful effect of the economic globalization that took place during the 1980s and 1990s. In the present paper, we perform a time series investigation for Canada using as the dependent variable the relative wages of production and non-production workers in the manufacturing sector between 1970 and 2001. The independent variables include R&D, union density, immigration, imports from non-OECD countries, foreign direct investment, capital labor ratio, and number of workers in each group. The results show that the R&D expenditures and union density are two important variables in the explanation of the widening wage gap. The effects of immigration, imports, and FDI on wage inequality are found to be moderate.

Uncovering Expertise for Safe and Efficient Performance in Railroad Operations

2019 ◽  
pp. 689-717
Author(s):  
Emilie M. Roth ◽  
Anjum Naweed ◽  
Jordan Multer
Keyword(s):  
United States ◽  
The United States ◽  
Technological Changes ◽  
System Safety ◽  
Railroad Workers ◽  
Efficient Performance ◽  
Primary Focus ◽  
The Impact

This chapter provides an overview of the literature on expertise in railroad operations and how it contributes to overall safety and productivity. The chapter is informed by research conducted across multiple continents, including Australia, Europe, and the United States. While the primary focus is on locomotive engineers, expertise in other railroad positions (e.g., conductors, dispatchers) is also covered. The chapter begins with an overview of railroad operations and how expertise fits into the railroad enterprise. Methods used to uncover expertise in railroad research are summarized, followed by a review of the types of strategies that railroad workers exhibit. This includes cognitive as well as teamwork strategies that contribute to overall system safety and resilience. This is followed by a discussion of the impact of ongoing technological changes on the requirements for expertise, and the chapter ends with speculation on longer term changes in railroad technologies and the nature of expertise.

scholarly journals Bargaining, Sorting, and the Gender Wage Gap: Quantifying the Impact of Firms on the Relative Pay of Women *

2015 ◽  
Vol 131 (2) ◽  
pp. 633-686 ◽  
Author(s):  
David Card ◽  
Ana Rute Cardoso ◽  
Patrick Kline
Keyword(s):  
Wage Inequality ◽  
Gender Gap ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Strongly Correlated ◽  
Skilled Workers ◽  
Cross Sectional ◽  
Income Statement ◽  
The Impact ◽  
Over Time

Abstract There is growing evidence that firm-specific pay premiums are an important source of wage inequality. These premiums will contribute to the gender wage gap if women are less likely to work at high-paying firms or if women negotiate (or are offered) worse wage bargains with their employers than men. Using longitudinal data on the hourly wages of Portuguese workers matched with income statement information for firms, we show that the wages of both men and women contain firm-specific premiums that are strongly correlated with simple measures of the potential bargaining surplus at each firm. We then show how the impact of these firm-specific pay differentials on the gender wage gap can be decomposed into a combination of sorting and bargaining effects. We find that women are less likely to work at firms that pay higher premiums to either gender, with sorting effects being most important for low- and middle-skilled workers. We also find that women receive only 90% of the firm-specific pay premiums earned by men. Importantly, we find the same gender gap in the responses of wages to changes in potential surplus over time. Taken together, the combination of sorting and bargaining effects explain about one-fifth of the cross-sectional gender wage gap in Portugal.

scholarly journals Routinization and Covid‑19: A Comparison Between the United States and Portugal

2020 ◽  
pp. 133-166
Author(s):  
Piero De Dominicis
Keyword(s):  
United States ◽  
Wage Inequality ◽  
The United States ◽  
Earnings Inequality ◽  
Current Crisis ◽  
Occupational Tasks ◽  
Wage Premia ◽  
The Individual ◽  
Earnings Dispersion ◽  
The Impact

The purpose of this study is to identify the role of automatization in increasing wage inequality, by comparing the United States to Portugal. Using the PSID and Quadros de Pessoal (Personnel Records), we find that labor income dynamics are strongly determined by the variance of the individual fixed component. This effect is drastically reduced by adding information on workers’ occupational tasks, confirming that a decreasing price of capital and the consequent replacement of routine manual workers have deepened wage inequality. During the current crisis, we find that the ability to keep working is strongly related with the kind of occupation. As such, we foster the impact of a permanent demand shock using an overlapping generations model with incomplete markets and heterogeneous agents to quantitatively predict the impact of Covid‑ 19 and lockdown measures on wage premium and earnings inequality. We find that wage premia and earnings dispersion increase, suggesting that earnings inequality will increase at the expense of manual workers.

scholarly journals Percepción de desigualdad económica y su influencia sobre la justificación de las diferencias de ingreso legítimas

2022 ◽  
Author(s):  
Julio César Iturra ◽  
Juan Carlos Castillo ◽  
Catalina Rufs ◽  
Luis Maldonado
Keyword(s):  
United States ◽  
Wage Inequality ◽  
Metropolitan Area ◽  
Social System ◽  
Wage Gap ◽  
Survey Design ◽  
The United States ◽  
System Justification ◽  
The Social ◽  
Experimental Survey

This study analyzes the effect of information about economic inequality on the justification of wage inequality. Using a representative sample of the metropolitan area of Santiago, Chile (n=732), we implemented an experimental survey design to replicate the results reported by Kriss-Stella Trump (2017) for the context of Sweden and the United States about wage gap justification. Our results show that factual wage information does not impact the overall wage gap justification. However, we evidenced that information about wage inequality increases the justification of wage gaps according to high and low-status occupations, which is enhanced by the joint exposure to the condition that seeks to motivate the social system justification. The study's methodological limitations are discussed, along with the implications of the evidence for the substantive analysis of attitudes toward inequality and economic redistribution.

scholarly journals The Importance of the Financial Sector and Its Impact on Economic System in the United States in Years 1970–201

Equilibrium ◽  
2011 ◽  
Vol 6 (3) ◽  
pp. 59-70
Author(s):  
Paweł Umiński
Keyword(s):  
United States ◽  
Economic System ◽  
Manufacturing Sector ◽  
Financial Sector ◽  
The United States ◽  
Market Exchange ◽  
Goods And Services ◽  
Socioeconomic System ◽  
Huge Impact ◽  
The Impact

Capitalism is an economic system which is subject to dynamic and continual changes. In the history of market exchange of goods and services a few of factors can be enumerated which had considerable influence on the whole socioeconomic system. These include the industrialization of the production process, the introduction of the production line, the growth of international trade and the information revolution. Financialization of economy is another factor that has a huge impact on today's capitalism. A huge increase in turnovers value on the financial markets has been observed since the early eighties. Already in the early nineties the whole financial sector, together with financial corporations, became very significant in the American economy. That was when the profits of the financial sector exceeded the profits of the manufacturing sector. This article is based on the descriptive method and presents the growth of relevance of financial sector in the United States of America which took place in the years 1970–2010. This phenomenon has a huge impact on the contemporary capitalism. The author strives to answer the following question in the recapitulation – what is the impact of the changes described above on the efficiency and competitiveness of the whole socioeconomic system?

Wage Compression and Wage Inequality Between Black and White Males in the United States, 1940–1960

1994 ◽  
Vol 54 (2) ◽  
pp. 358-381 ◽  
Author(s):  
Thomas N. Maloney
Keyword(s):  
United States ◽  
Wage Inequality ◽  
Wage Gap ◽  
Wage Structure ◽  
The United States ◽  
Black And White ◽  
White Males ◽  
Worker Characteristics ◽  
The 1950S ◽  
Wage Compression

The gap between the mean wages of black men and white men in the United States narrowed substantially between 1940 and 1950. There was, however, almost no change in this wage gap between 1950 and 1960. Some of this discontinuity in the path of black progress can be explained by general changes in the wage structure—wage compression in the 1940s and slight expansion in the 1950s. However, most of the gains of the 1940s were driven by race-specific factors, including increasing relative wages controlling for worker characteristics. These race-specific gains ceased in the 1950s.

scholarly journals Transatlantic Differences in Labour Markets: Changes in Wage and Non-Employment Structures in the 1980s and the 1990s

2008 ◽  
Vol 9 (3) ◽  
pp. 312-338 ◽  
Author(s):  
Patrick A. Puhani
Keyword(s):  
United States ◽  
Wage Inequality ◽  
The United States ◽  
Data Sets ◽  
Skilled Workers ◽  
Apprenticeship Training ◽  
Level Data ◽  
Economics Profession ◽  
Popular View ◽  
Skill Supply

Abstract Rising wage inequality in the United States and Britain and rising continental European unemployment have led to a popular view in the economics profession that these two phenomena are related to negative relative demand shocks against the unskilled, combined with flexible wages in the Anglo-Saxon countries, but wage rigidities in continental Europe (‘Krugman hypothesis’). This paper tests this hypothesis based on seven large person-level data sets for the 1980s and the 1990s. I use a more sophisticated categorization of low-skilled workers than previous studies, which exhibits differences between German workers with and without apprenticeship training, particularly in the 1980s. I find evidence for the Krugman hypothesis when Germany is compared with the United States. However, supply changes differ considerably between countries, with Britain experiencing enormous increases in skill supply explaining the relatively constant British skill premium in the 1990s.

Immigration in American Economic History

2018 ◽  
pp. 100-118
Author(s):  
Joseph P. Ferrie
Keyword(s):  
United States ◽  
Human Capital ◽  
Seventeenth Century ◽  
Economic History ◽  
Manufacturing Sector ◽  
The United States ◽  
Us Economy ◽  
The Us ◽  
Initial Settlement ◽  
The Impact

Immigration has been a powerful force is the US economy right from the period of initial settlement in the early seventeenth century. It has been instrumental in building the nation’s infrastructure, transforming its manufacturing sector, and growing its labor force, as it transferred human capital from where it was initially generated (abroad) to where it was productively employed (the United States). This chapter surveys the impact on the economy, on the immigrants themselves, and on the Americans they joined in four eras: (1) settlement (1600s–1700s); (2) the first “Great Wave” (1800–1890); (3) the second “Great Wave” (1890–1920s); and (4) the post-1965 period.

Moving Hollywood Abroad: Divided Labor Markets and the New Politics of Trade in Services

2008 ◽  
Vol 62 (4) ◽  
pp. 653-687 ◽  
Author(s):  
Kerry A. Chase
Keyword(s):  
United States ◽  
Labor Markets ◽  
Wage Inequality ◽  
Motion Picture ◽  
Domestic Politics ◽  
The United States ◽  
Probit Analysis ◽  
Trade In Services ◽  
Skilled Workers ◽  
New Politics

Theories of trade and domestic politics have been applied extensively to manufacturing and agriculture; the political economy of trade in services, however, remains poorly understood. This article examines how the “offshoring” of services segments labor markets and places low-skilled and high-skilled labor at odds on trade issues. Drawing from a case where trade has been politically contentious of late—motion picture services in the United States—the article finds that offshoring can aggravate wage inequality, creating incentives for low-skilled workers to demand policy remedies. Consistent with this expectation, an ordered probit analysis of labor-group lobbying reveals that low-skilled occupations in motion picture services were most likely to support countervailing duties and Section 301 action against productions filmed abroad. The findings suggest that when services are tradable, labor-market cleavages are not purely factoral or sectoral, but occupational. This new politics of trade in services has important implications for trade policy in the United States and multilateral rulemaking in the World Trade Organization.

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