Do Startup Employees Earn More in the Long Run?

Evaluating the attractiveness of startup employment requires an understanding of both what startups pay and the implications of these jobs for earnings trajectories. Analyzing Danish registry data, we find that employees hired by startups earn roughly 17% less over the next 10 years than those hired by large, established firms. About half of this earnings differential stems from sorting—from the fact that startup employees have less human capital. Long-term earnings also vary depending on when individuals are hired. Although the earliest employees of startups suffer an earnings penalty, those hired by already-successful startups earn a small premium. Two factors appear to account for the earnings penalties for the early employees: Startups fail at high rates, creating costly spells of unemployment for their (former) employees. Job-mobility patterns also diverge: After being employed by a small startup, individuals rarely return to the large employers that pay more.

Return to Skills in India: The Role of Digital Access and Usage

This article analyses the quality of labour force in India using the data from India’s Citizen Environment and Consumer Economy (ICE) 360° survey (2016), which provides a view on how Indians earn, spend, save, invest, live, think, access amenities and public goods and consume. The approach adopted here provides an alternative perspective on the quality of labour force, which depends on skill levels, education and technology. The analysis reveals that Indian labour markets depicts a clear dichotomy between higher skill levels being dominated largely by the high-skilled workers and the manual jobs with lower skill levels for the low-skilled workers. Technology and digital usage has further accentuated this earnings differential. Also, higher skill levels in India tend to have both higher average earning and education levels compared to their lower skill counterparts, leading to widening the earning inequality.Further, this analysis provides important insights into the low skill levels of the vast Indian labour force, which would require re-qualification and re-specialisation of the labour force in order to compete in fast-changing globalised India. Thus, it becomes critical for Indian policymakers to relook the skill formation and education system to be able to swiftly and effectively respond to constantly evolving skill demand in the local, national and global market.

The Earnings Differential Between Long-Тerm Immigrants and Natives in Russia: Тhe Role of Cohorts

In this paper the author analyzes the impact of immigration cohorts on the earnings differential between long-term immigrants and natives in Russia. The nationally representative data came from the Russian Longitudinal Monitoring Survey for 2010–2015. The main methods of empirical analysis in the study are ordinary least squares regression and the random effects model. The obtained results show that long-term immigrants who moved to Russia in the 2000s earn less on average than natives and those who moved to the country in the 1990s. The findings can be explained by two main reasons. On the one hand, cohorts differ in length of the residence period in the country. It is expected that immigrants who moved to Russia in the 1990s have been living in the country for a longer time and could have gained more competence and skills required for the Russian labor market. This, in turn, may positively affect their earnings. On the other hand, the two groups are quite heterogeneous in terms of human capital. Immigrants from the later cohort are less educated, and the share of ethnic Russian respondents among them is also lower compared to those who moved to the country in the 1990s. Distinctions in human capital lead to differences in earnings between the two groups of immigrants.

Age and the new lesbian earnings penalty

Purpose The purpose of this paper is to observe how the cohabiting lesbian earnings differential in the USA has changed since the early 2000s, a time period during which the lesbian, gay and bisexual rights movement has been very successful. Design/methodology/approach The author analyzes the 2012–2017 American Community Survey using Mincer-style income regressions. Findings The author finds that cohabiting lesbians earn approximately 11 percent less than married heterosexual women. The earnings penalty has emerged as a result of the disproportionately large penalty young lesbians’ experience. While older lesbians (over 45) do not experience an earnings penalty, younger lesbians appear doubly disadvantaged. They now face a lesbian wage gap of approximately 24 percent in addition to the previously documented gender wage gap. Research limitations/implications The paper shows that cohabiting lesbians earn approximately 11 percent less than married heterosexual women. The earnings penalty has emerged as a result of the disproportionately large penalty young cohabiting lesbians experience. While older cohabiting lesbians (over 45) do not experience an earnings penalty, younger cohabiting lesbians face a wage gap of approximately 24 percent. Originality/value The study finds, contrary to most previous research, a cohabiting lesbian earnings penalty instead of premium. The findings highlight that there is considerable heterogeneity in the economic experience of cohabiting lesbians, and that young cohabiting lesbians comprise a particularly vulnerable population.

Gender Differences in Hospital CEO Compensation: A National Investigation of Not-for-Profit Hospitals

Gender pay equity is a desirable social value and an important strategy to fill every organizational stratum with gender-diverse talent to fulfill an organization’s goals and mission. This study used national, large-sample data to examine gender difference in CEO compensation among not-for-profit hospitals. Results showed the average unadjusted annual compensation for female CEOs in 2009 was $425,085 compared with $581,121 for male CEOs. With few exceptions, the difference existed across all types of not-for-profit hospitals. After controlling for hospital- and area-level characteristics, female CEOs of not-for-profit hospitals earned 22.6% less than male CEOs of not-for-profit hospitals. This translates into an earnings differential of $132,652 associated with gender. Explanations and implications of the results are discussed.

Earnings Premium in State Jobs Across Urban China

Using the Chinese Household Income Project (CHIP) data, we find a 30 percent raw differential in earnings in favor of state workers in 2002. We examine the degree to which this differential is a pure premium by using a Heckman two-step selection model, where we instrument workers’ preference for state jobs with family political connections, among other factors. We find that 22 percent of the observed earnings differential is a pure premium to a worker in a state job in urban China. In the absence of a political transition in China, state jobs remained the privileged constituency in a dual-track transition that attracted the best politically connected workers in urban China and offered them a pure earnings premium.

Immigrants’ initial firm allocation and earnings growth

While employers are playing an increasingly important role in immigration selection in Canada, little is known about how firm-level characteristics affect the economic integration of immigrants. Using a Canadian employer–employee matched dataset, this paper considers whether immigrants initially employed in low-paying firms in Canada experienced inferior earnings growth than those initially employed in high-paying firms. The results show that the large earnings differential observed between immigrants initially employed in low- and high-paying firms diminished only slightly over the subsequent 14 years, even when differences in demographic and general human capital characteristics are taken into account.Alors que les employeurs jouent un rôle de plus en plus important dans la sélection des immigrants qui s’établissent au Canada, on en sait peu sur la façon dont les caractéristiques au niveau de l’entreprise influencent l’intégration économique de ces derniers. Au moyen d’un ensemble de données appariées sur les employeurs et les employés, le présent document vise à déterminer si la croissance des gains des immigrants employés initialement au Canada par des entreprises à bas salaires est plus faible que celle des gains des immigrants employés au départ par des entreprises à hauts salaires. Les résultats montrent que l’écart important observé entre les gains des immigrants employés au départ par des entreprises à bas salaires et de ceux employés par des entreprises à hauts salaires ne diminuait que légèrement au cours des 14 années suivantes, même après avoir tenu compte des différences de caractéristiques démographiques et de caractéristiques générales du capital humain.

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

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.