Wage Discrimination and Tax Progressivity

How does wage discrimination affect tax progressivity? To address this, optimal tax progressivity is characterized in an economy where individuals have different levels of ability and some of the individuals face wage discrimination. A decrease in wage discrimination reduces optimal tax progressivity, while an increase in ability inequality raises it. When pre-tax income inequality increases, tax progressivity can decrease. Moreover, interaction effect on tax progressivity of wage discrimination and ability inequality is negative. These findings hold whether social planners or voters decide tax progressivity. The empirical analysis with panel data of Organisation for Economic Co-operation and Development economies provides evidence supportive of the theoretical findings.

The Disabled Wage Gap between Social Enterprises and Capitalist Enterprises

Background: In recent years, the disabled wage gap between persons with disabilities (PwD) and those without disabilities (PwoD) has widened considerably. However, one of the prime reasons for creating social enterprise is that they include in their goals employ and include vulnerable groups, but such firms are in favor of PwD in relation to wage or not? The main aim of this article is to analyze whether wage discrimination exists between PwD employed by social enterprises (SE) and those employed by capitalist enterprises (CE).Methods: We used microdata from the Continuous Sample of Work Lives (CSWL) for Spain. In terms of the various statistical and econometric methods employed in the study, we used Pearson’s c2 test, and quantile regression and Oaxaca-Blinder wage decomposition.Results: Although wages for persons with disabilities are lower in social enterprises than in capitalist enterprises, this does not occur in every income distribution percentile. If we also consider employees with similar socio-occupational profiles, SE employees earn more than CE employees. However, the same wage gap exists in PwD employment as it does do in the Spanish labor market in terms of gender, age, level of education, skill level, type of contract, working hours, company size, and sector of activity, both in social and capitalist enterprises.Conclusion: Results of the study showed that not only, therefore, are SE more sensitive in terms of the labor inclusion of disabled people but they also pursue more positive PwD wage discrimination than CE.

Wage Gap Between Formal and Informal Regular Workers in India: Evidence from the National Sample Survey

This article elucidates the wage differential between formal and informal workers across different sectors, gender, occupation, and industry by using the 61st (2004–2005) and 68th (2011–2012) Rounds of National Sample Survey Office (NSSO) unit-level data. The study emphasizes two things: first, identifying the existence of the absolute wage gap between formal and informal workers and, second, finding the intensity of discrimination in wage between formal and informal workers. The vast body of literature available on this issue identifies gender, caste, religion, and region as the factors causing wage discrimination. This literature makes a shift from these traditional concepts by explaining the importance of job contract as a basis of wage discrimination. This study utilizes the percentage relative gap (PGR) to work out the absolute wage gap between the two types of workers (formal and informal) and thereafter decomposes it to arrive at the source of the wage gap. The study applies the threefold Blinder–Oaxaca (B–O) decomposition method, which categorizes the total wage gap into three parts. The dependent variable chosen for the equation is the natural logarithm of daily wage. While the wage gap between formal and informal workers did not significantly fall during the study period, the results, on the other hand, indicate that the component of discrimination is larger than the component of endowment. This explains the discrimination perpetrated against informal workers in the Indian labor market. Tackling such discrimination necessitates implementation of more proactive policies for achieving wage equality in India.

Comportamiento salarial por género en nodos turísticos mexicanos

The present piece of research work was designed to examine wage differences and gender discrim‑ ination in the nodes of the tourist regions of Mexico over the last two decades, using Mincer’s model of Wages and the detailed breakdown of Oaxaca‑Blinder. This research was carried out in 8 Mexican tourist nodes. The study variables were gender, income per hour, years of schooling and experience. Multiple linear regres‑ sions were used to carry out the econometric analyses. Evidence of wage discrimination against women was found in all the tourist nodes, ranging between 0.43 and 1.57. The lowest level of wage discrimination is experienced in Los Cabos, Baja California Sur and the highest in Ciudad Juárez, Chihuahua.

Gender wage discrimination by distribution of income in Mexico, 2005-2020

This paper aims to analyze the hourly gender wage gap between men and women in Mexico for the period 2005-2020. To this end, a number of variables is selected to reflect workers' human capital, household circumstances and workplace characteristics; then, a novel non-parametric method decomposes wage differentials between men and women into its composition and structure effects throughout the distribution of labor income. Results are consistent with the sticky-floor hypothesis, where male workers earn higher hourly wages than female workers at low income levels. However, differentials decrease in the upper part of the distribution and may even reverse, favoring women over men at the highest income levels.