scholarly journals Trade Liberalization and the Lead Role of Human Capital and Job Attributes in Wage Determination: The Case of Pakistan’s Labor Market

2009 ◽  
Vol 14 (1) ◽  
pp. 1-37 ◽  
Author(s):  
Bushra Yasmin
Keyword(s):  
Human Capital ◽  
Trade Liberalization ◽  
Wage Gap ◽  
Individual Characteristics ◽  
Wage Distribution ◽  
Wage Determination ◽  
Pay Gap ◽  
Job Attributes ◽  
The Difference

This study analyzes the role of human capital and job attributes, i.e., supply-side determinants, in determining wages in a period of trade liberalization. Using the Mincerian earning function and based on data from the Labor Force Surveys, we construct a model to estimate various wage determinants and compute the rates of return to different educational qualifications and relative occupational wage shares for the years 2005/06 and 1990/91. The estimated earning functions for 1990/91 and 2005/06 are compared to investigate whether individual characteristics—such as gender, job location, nature of job, educational qualifications, and different occupations—cause the wage gap to widen or contract under conditions of trade liberalization. The mean and quantile regression approach is used for estimation purposes. Our key findings postulate (i) an increasing gender pay gap, (ii) a higher wage premium to the highest educational qualification, and (iii) more or less stable relative wages for different occupations over time. In addition, wage dispersion across occupational groups appears more pronounced in 1990/91 than in 2005/06, implying a declining trend in the difference in wage distribution across occupations.

scholarly journals The Gender Wage Gap: Extent, Trends, and Explanations

2017 ◽  
Vol 55 (3) ◽  
pp. 789-865 ◽  
Author(s):  
Francine D. Blau ◽  
Lawrence M. Kahn
Keyword(s):  
Gender Differences ◽  
Human Capital ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Panel Study ◽  
Work Force ◽  
Wage Distribution ◽  
Gender Pay Gap ◽  
Pay Gap ◽  
Quantitative Evidence

Using Panel Study of Income Dynamics (PSID) microdata over the 1980–2010 period, we provide new empirical evidence on the extent of and trends in the gender wage gap, which declined considerably during this time. By 2010, conventional human capital variables taken together explained little of the gender wage gap, while gender differences in occupation and industry continued to be important. Moreover, the gender pay gap declined much more slowly at the top of the wage distribution than at the middle or bottom and by 2010 was noticeably higher at the top. We then survey the literature to identify what has been learned about the explanations for the gap. We conclude that many of the traditional explanations continue to have salience. Although human-capital factors are now relatively unimportant in the aggregate, women's work force interruptions and shorter hours remain significant in high-skilled occupations, possibly due to compensating differentials. Gender differences in occupations and industries, as well as differences in gender roles and the gender division of labor remain important, and research based on experimental evidence strongly suggests that discrimination cannot be discounted. Psychological attributes or noncognitive skills comprise one of the newer explanations for gender differences in outcomes. Our effort to assess the quantitative evidence on the importance of these factors suggests that they account for a small to moderate portion of the gender pay gap, considerably smaller than, say, occupation and industry effects, though they appear to modestly contribute to these differences. ( JEL I26, J16, J24, J31, J71)

scholarly journals Trade liberalization and the wage gap: the role of vertical linkages and fixed costs

2017 ◽  
Vol 154 (1) ◽  
pp. 75-115 ◽  
Author(s):  
Francesco Di Comite ◽  
Antonella Nocco ◽  
Gianluca Orefice
Keyword(s):  
Trade Liberalization ◽  
Wage Gap ◽  
Fixed Costs ◽  
Vertical Linkages

scholarly journals The influence of individual characteristics on getting involved in an entrepreneurial team: The contingent role of individualism

2021 ◽  
Author(s):  
Nathaly Pinzón ◽  
Javier Montero ◽  
José L. González-Pernía
Keyword(s):  
Human Capital ◽  
Educational Level ◽  
Early Stage ◽  
Individual Characteristics ◽  
Global Entrepreneurship Monitor ◽  
Entrepreneurial Teams ◽  
Entrepreneurial Team ◽  
Employment Generation ◽  
Global Entrepreneurship

AbstractA traditional stereotype of the entrepreneur is that of a lone hero. However, many entrepreneurs engage in new businesses as members of entrepreneurial teams. These teams usually perform better in terms of employment generation, innovation, and profits. Thus, a relevant question is why some individuals get involved in entrepreneurship through a team rather than alone. Our explanation is focused on two variables related to the entrepreneur’s human capital: their educational level and their intrapreneurial experience. There are conflicting arguments on how these variables lead an entrepreneur to join a team, and we argue that the degree of individualism of the society helps us understand the discrepancies. We use a sample of 66,716 early-stage entrepreneurs from 66 countries surveyed by the Global Entrepreneurship Monitor between 2014 and 2017. Our results show that entrepreneurs with higher levels of education and intrapreneurial experience are more likely to be involved in the entrepreneurship process as members of teams. However, the effect of educational level is less pronounced in individualist contexts. In addition, we find that the motivation to enter entrepreneurship partially mediates these relationships, as individuals endowed with higher human capital are likely to enter entrepreneurship driven by an opportunistic motivation, which in turns makes them likely to need or join teams to reach their goals.

scholarly journals The Gender Wage Gap in Developed Countries

2017 ◽  
pp. 368-394 ◽  
Author(s):  
Astrid Kunze
Keyword(s):  
Gender Differences ◽  
Human Capital ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Developed Countries ◽  
Gender Pay Gap ◽  
Demand Side ◽  
Pay Gap ◽  
On Demand ◽  
Employment Rates

Despite the increased attachment of women to the labor force in nearly all developed countries, a stubborn gender pay gap remains. This chapter provides a review of the economics literature on the gender wage gap, with an emphasis on developed countries. We begin with an overview of the trends in the gender differences in wages and employment rates. We then review methods used to decompose the gender wage gap and the results from such decompositions. We discuss how trends and differences in the gender wage gap across countries can be understood in light of nonrandom selection and human capital differences. We then review the evidence on demand-side factors used to explain the existing gender wage gap and then discuss occupational segregation. The chapter concludes with suggestions for further research.

scholarly journals Strategic improvisation and HEIs performance: the moderating role of organizational culture

2018 ◽  
Vol 2 (3) ◽  
pp. 212-230 ◽  
Author(s):  
Najafi Auwalu Ibrahim ◽  
Rosli Mahmood ◽  
Muhammad Shukri Bakar
Keyword(s):  
Organizational Culture ◽  
Organizational Factors ◽  
Individual Characteristics ◽  
Academic Leaders ◽  
Inconsistent Result ◽  
Content Type ◽  
Future Studies ◽  
The Difference ◽  
The Impact

PurposeThis study aims to explore the relationships between strategic improvisation, organizational culture and higher education institutions (HEIs) performance. The dynamic nature of today’s environment, increased population and demand and budget cuts have created a lot of pressure on HEIs around the world. Hence, the need for effective human resource capable of providing advanced policies for efficiency and sustainability of these institutions.Design/methodology/approachA total of 229 questionnaires were filled and returned by academic leaders from HEIs in Kano state, Nigeria. The study used partial least squares path modelling to test the hypotheses postulated.FindingsThe major findings indicate that both strategic improvisation and organizational culture dimensions have direct relationship with HEIs performance. However, only innovative culture moderates the relationship between strategic improvisation and HEIs, while bureaucratic culture and supportive culture fail to support the proposed hypothesis.Research limitations/implicationsMore studies are needed to further validate the impact of strategic improvisation (SI) on other public sector performance. Also, future studies should use longitudinal approach to establish at which stage SI has more impact on performance. Also, future studies should identify the difference that exists between units, department and faculty leaders, as some are more likely to engage in SI due to the nature of their specialization.Practical implicationsIt is obvious that HEIs performance is not only limited to organizational factors but also individual characteristics such as ability to improvise. Hence, HEIs should consider SI ability during employment to ensure efficiency, performance and sustainability. Moreover, organizational culture of HEIs needs to be updated and to be more flexible in accommodating new initiatives or failure to encourage display of such ability.Originality/valuePrevious studies especially in the for profit sector have demonstrated the role of SI and organizational culture on performance. Thus, the present study is one of the early studies in the non-profit sector, specifically the HEIs. Moreover, the inconsistent result of the previous findings necessitates the study to test the moderating effect of organizational culture.

Gender-specific human capital: identification and quantifying its wage effects

2017 ◽  
Vol 38 (6) ◽  
pp. 854-874 ◽  
Author(s):  
Maryna Tverdostup ◽  
Tiiu Paas
Keyword(s):  
Human Capital ◽  
Wage Gap ◽  
Pay Gap ◽  
Men And Women ◽  
Male And Female ◽  
Content Type ◽  
Wage Returns ◽  
Specific Human Capital ◽  
Gender Specific ◽  
Opposite Gender

Purpose The purpose of this paper is to better understand the possible reasons behind gender pay disparities, focussing on the unique features of male and female human capital and their wage returns. Despite increasing convergence of male and female human capital attainments, substantial differences remain. Extraction of human capital components non-overlapping across genders provides more profound explanation of the unexplained wage gap of men and women. Design/methodology/approach Starting with the non-parametric matching-based decomposition technique, the authors extend the pay gap estimation framework and focus on males and females having no counterpart in a set of characteristics within the opposite gender. The authors identify gender-unique human capital in terms of differences in distribution of individual characteristics across men and women and gender-specific combination of human capital characteristics. Wage returns to gender-specific profiles are evaluated applying wage regression on both full distribution of earnings and wage quantiles. The research relies on the Survey of Adult Skills (PIAAC) database for Estonia, which incorporates both formal education and cognitive skill records. Findings The study identifies sets of characteristics and competencies exclusive for both genders, proving that male and female profiles cannot be directly compared. The results suggest that men possess high individual and combined abilities in numeracy and problem solving in technology-rich environment, not always reached by females. This potentiates men’s higher earnings in spite of their generally lower formal educational attainments. Wage gap analysis over the full distribution of earnings shows even larger “glass ceiling” effect for females, possessing woman-specific human capital. Originality/value The authors raise a research from a novel perspective towards a role of human capital in gender wage inequality. Instead of usual reference to observable gaps in male and female characteristics, the authors identify the gender-specific human capital profiles, to a large extent non-reached by the opposite gender. Analysed associations between gender-specific characteristics and earnings provide an insight to possible effects of gender-unique human capital on a male-female wage disparity.

Immigrant–native wage gap in Europe: the role of cognitive skills and their use at work

2019 ◽  
Vol 40 (1) ◽  
pp. 154-175 ◽  
Author(s):  
Maryna Tverdostup ◽  
Tiiu Paas
Keyword(s):  
Human Capital ◽  
Cognitive Skills ◽  
Wage Rate ◽  
Gap Analysis ◽  
Wage Gap ◽  
Multivariate Regression Analysis ◽  
Wage Penalty ◽  
Content Type ◽  
Final Population

Purpose The purpose of this paper is to address the role of cognitive skills and extent of skill use at work in explaining the immigrant–native wage gap in Europe. The study targets immigrant–native disparities in literacy and numeracy cognitive skills, as important, yet not exhaustive factor behind immigrants’ wage penalty. Design/methodology/approach The research relies on the Program of International Assessment of Adult Competencies data for 15 European countries. The empirical analysis employs multivariate regression analysis and incorporates the full set of plausible values for each skill domain, to correctly measure cognitive skills. To estimate standard errors, the authors employ Jackknife replication methodology with 80 replication weights and final population weight. Findings The authors document that, on average, immigrants achieve substantially worse scores in literacy and numeracy test domains. Only highly educated immigrants tend to improve their skills over time in host countries. The results of wage gap analysis indicate that having cognitive skills, demographic profile and occupation category comparable to natives does not yield comparable wage rate. The remaining wage gap results from the systematic differences in skills application at work, as immigrants use their skills to lower extent, relative to natives. Originality/value The research employs a novel measure of productive human capital, which accounts for cognitive skills in literacy and numeracy domains, and frequencies of skill use at work. It allows to more precisely evaluate the immigrant–native disparity in human capital application and its reflection on the wage rate.

scholarly journals DIFFERENCES IN DECLINE: QUANTILE REGRESSION OF MALE–FEMALE EARNINGS DIFFERENTIAL IN MALAYSIA

2015 ◽  
Vol 60 (04) ◽  
pp. 1550054 ◽  
Author(s):  
SIEW CHING GOY ◽  
GERAINT JOHNES
Keyword(s):  
Quantile Regression ◽  
Wage Inequality ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Wage Distribution ◽  
Western Society ◽  
Floor Effect ◽  
Earnings Differential ◽  
Gender Earnings Gap ◽  
The Difference

Semiparametric estimation has gained significant attention in the study of wage inequality between men and women in recent years. By extending the wage gap at the mean towards the entire wage distribution using quantile regression, it enables researchers to ascertain the direction and the proportions of differences in characteristics and returns to these characteristics at different parts of the wage distribution. This line of research has been prominent in western society but has not yet been explored in the context of the Malaysian labor market. To fill the gap, this paper examines the gender earnings gap in Malaysia between 1994 and 2004 using Malaysia Population and Family Survey data. The gender earnings differential, as measured by the log percentage point is 53% in 1994. The difference reduces to 45% for a restricted sample and 42% for the unrestricted sample in 2004. However, it was found that the gender wage gap reduces as we move up the wage distribution. This suggests that women suffer from a sticky floor effect, i.e., the gender wage gap is bigger at the bottom of distribution. More importantly, the observed gender wage differentials do not reflect differences in the productive characteristics of the workers. In fact, it accounts for very little, if any, of the gap in Malaysia. However, the extent of the price effect is larger at the bottom end of the distribution than at the top.

scholarly journals Economic Growth and Quality Adjusted Human Capital Equation: Moderating Role of Social Capabilities in Africa

2021 ◽  
Vol 2 (2) ◽  
pp. 1-9
Author(s):  
Tonuchi Joseph ◽  
Pauline Obikaonu
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Method Of Moment ◽  
African Countries ◽  
Adoption Of Technology ◽  
Income Per Capita ◽  
Per Capita ◽  
The Difference ◽  
General Method

The role of human capital on economic growth across countries has over time garnered lots of discussion in economic literature. This is fundamental, given that the actual determinant of the difference in income per capita across countries or why some countries are growing faster than other countries has remained an unresolved issue. This study provides a different insight into the nexus between human capital and economic growth by accounting for the role of social capabilities in a panel framework. Specifically, the study covers 40 African countries between 1998-2019, where the General Method of Moment (GMM) was employed to estimate the model. Specifically, it was discovered that without improved legal institutions and better economic opportunities, human capital impact on the growth of income per capita across countries is insignificant though positive. The study concludes that the effectiveness of knowledge accumulation and adoption of technology in a country is hinged on the availability of an enhanced legal, social, and economic environment.

scholarly journals Aspirations, Human Capital Investment, and the Intergenerational Transmission of Poverty in Indonesia

2021 ◽  
Author(s):  
Sung Soo Lim ◽  
Jongwook Lee
Keyword(s):  
Human Capital ◽  
Educational Attainment ◽  
Capital Investment ◽  
Household Head ◽  
Age Cohort ◽  
The Rich ◽  
The Difference ◽  
The Relationship ◽  
Parental Aspirations

AbstractThis study investigates the effect of parental aspirations gap on children’s educational attainment between 2007 and 2014, using two waves of Indonesian Family Life Survey data. The aspirations gap is measured by the difference between one’s future reference point and his or her current life evaluation reported by each household head and spouse. The results show that boys whose fathers report a moderate level of the aspirations gap achieve substantially longer schooling years than the mean level of their same age cohort. Furthermore, the relationship is found to be inversely U-shaped, implying that an excessive aspirations gap discourages investment in children’s human capital. An increasing aspirations gap of parents is also found to impede the educational attainment of children in poor families, which are more vulnerable to shocks that are found to increase the gap. Overall, the results of this paper shed light on the role of parental aspirations gap in the link between socioeconomic status of family and educational outcomes of children in Indonesia, where the gap of the poor is found to increase faster than the rich.

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