Do “inferior” jobs always suffer from a wage penalty? Evidence from temporary workers in Cambodia and Pakistan

Purpose This paper aims to investigate the wage gap between temporary and permanent workers in Pakistan and Cambodia. Design/methodology/approach Quantile regression estimator is likely to be the most relevant to the sample. Findings The estimates indicate the presence of a temporary employment wage penalty in Pakistan and contrarily a wage premium in Cambodia. Moreover, quantile regression estimates show that wage differentials could greatly vary across the wage distribution. The wage gap is wider at the bottom of the wage distribution in Pakistan, suggesting a sticky floor effect that the penalty of being in temporary jobs could be more severe for disadvantaged workers. By contrast, a glass ceilings effect is found in Cambodia, indicating that the wage premium is small at the bottom and becomes high at the top of the pay ladder. Originality/value Despite the rise of temporary jobs in the past several decades, the empirical evidence on wage differentials between temporary and permanent workers is extremely limited in developing Asian countries. This paper is the first research work that systematically examines the temporary-permanent wage gap in selected Asian countries, based on their National Labor Force Survey data.

Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19

We investigate the behavior of aggregate hours supplied by workers in permanent (open-ended) contracts and temporary contracts, distinguishing changes in employment (extensive margin) and hours per worker (intensive margin). We focus on the differences between the Great Recession and the start of the COVID-19 Recession. In the Great Recession, the loss in aggregate hours is largely accounted for by employment losses (hours per worker did not adjust) and initially mainly by workers in temporary contracts. In contrast, in the early stages of the COVID-19 Recession, approximately sixty percent of the drop in aggregate hours is accounted for by permanent workers that do not only adjust hours per worker (beyond average) but also face employment losses—accounting for one-third of the total employment losses in the economy. We argue that our comparison across recessions allows for a more general discussion on the impact of adjustment frictions in the dual labor market and the effects policy, in particular the short-time work policy (ERTE) in Spain.

The Impact of Trade Liberalisation on Decent Work: The Case of the Philippine Sugar Mill Workers

<p>The impact of trade liberalisation on the structure and nature of work is a divisive topic. On the one hand, there are those who support trade liberalisation by pointing to the potential employment generation (Kelly & Prokhovnik, 2004) and the upward pressure on workers’ skills levels (Mander & Goldsmith, 1996). In contrast, there are those who remain critical and argue that trade liberalisation results in job losses, downward pressure on working conditions and limited opportunity for unskilled workers (Solidar, 2007c; 2007e). Impacts that indicate an improvement in decent work are often framed as ‘social upgrading’ while any deterioration in decent work is seen to result in ‘social downgrading’. Research in this field, while growing, tends to assess the impact of trade liberalisation from a national, sectoral or organisational perspective, while little is known of the workers’ perspective. Adopting a worker perspective, this thesis examines the impact of trade liberalisation on decent work among sugar mill workers in the Philippines. Using a qualitative single case study method, the study draws on the changes in employment and work conditions in a sugar mill when liberal trade policies were introduced. The study uses both primary and secondary data. Primary data were taken from representatives of the workers, the employer and the government sector at national and workplace levels. The study highlights the trade-offs between indicators of decent work and finds that decent work can be influenced by institutional frameworks in addition to employment strategies. Trade liberalisation resulted in numerical flexibility where permanent workers were reduced while contractual workers were hired as cost reduction measures and a way of avoiding labour laws that are protective of permanent workers. A shift of employment demand toward semi-skilled or skilled workers was also found. Thus, this research directs the attention of future research on trade liberalisation and decent work towards more vulnerable workers such as contractual workers. Furthermore, it highlights the need to increase the coverage of legislative protection to include non-permanent workers. Lastly, it challenges the Philippine government to increase the skill level of its workforce to facilitate employment generation.</p>

The Impact of Trade Liberalisation on Decent Work: The Case of the Philippine Sugar Mill Workers

<p>The impact of trade liberalisation on the structure and nature of work is a divisive topic. On the one hand, there are those who support trade liberalisation by pointing to the potential employment generation (Kelly & Prokhovnik, 2004) and the upward pressure on workers’ skills levels (Mander & Goldsmith, 1996). In contrast, there are those who remain critical and argue that trade liberalisation results in job losses, downward pressure on working conditions and limited opportunity for unskilled workers (Solidar, 2007c; 2007e). Impacts that indicate an improvement in decent work are often framed as ‘social upgrading’ while any deterioration in decent work is seen to result in ‘social downgrading’. Research in this field, while growing, tends to assess the impact of trade liberalisation from a national, sectoral or organisational perspective, while little is known of the workers’ perspective. Adopting a worker perspective, this thesis examines the impact of trade liberalisation on decent work among sugar mill workers in the Philippines. Using a qualitative single case study method, the study draws on the changes in employment and work conditions in a sugar mill when liberal trade policies were introduced. The study uses both primary and secondary data. Primary data were taken from representatives of the workers, the employer and the government sector at national and workplace levels. The study highlights the trade-offs between indicators of decent work and finds that decent work can be influenced by institutional frameworks in addition to employment strategies. Trade liberalisation resulted in numerical flexibility where permanent workers were reduced while contractual workers were hired as cost reduction measures and a way of avoiding labour laws that are protective of permanent workers. A shift of employment demand toward semi-skilled or skilled workers was also found. Thus, this research directs the attention of future research on trade liberalisation and decent work towards more vulnerable workers such as contractual workers. Furthermore, it highlights the need to increase the coverage of legislative protection to include non-permanent workers. Lastly, it challenges the Philippine government to increase the skill level of its workforce to facilitate employment generation.</p>

Organising Against Precarity: The Life of a South African Labour Broker Worker

This article presents Khongelani Hlungwani’s experiences of working as a labour broker worker and his struggle to become a permanent worker in Gauteng, South Africa. His account provides a lens through which to understand the shopfloor divisions between permanent and labour broker workers. These divisions are, as Hlungwani’s account demonstrates, compounded by a trade union movement that largely sidelines the interests of precarious workers in favour of permanent workers. This has led many workers, like Hlungwani, to be distrustful of trade unions. Thus, when new labour rights were introduced in 2015, which provided an impetus for labour broker workers to organise, many, like Hlungwani, chose to do so outside of trade unions. The article demonstrates how it was possible, in the South African context, to utilise the institutional power of new labour rights to build associational power outside of trade unions. The article provides insight into both the strength and the fragility of these forms of organising through an account of the strike that Hlungwani participated in in solidarity with unionised workers at his workplace.

KAJIAN UPAH PEKERJA KONSTRUKSI PADA PROYEK BANGUNAN GEDUNG DI PROVINSI SUMATERA BARAT

In the world of the construction industry, the wages of workers are quite large, which is about one-third of the construction value. So the company should pay serious attention to the wages of these workers. However, information regarding the wages of construction workers is only in the form of daily wages for casual workers and monthly wages for permanent workers, while information on the cost of workers' costs is not available. This study aims to identify the components of labor costs and their proportion to the overall cost of construction workers wages and to identify factors related to wages and costs of construction workers. In this study the method used is empirical and inductive methods, then the data obtained is processed and analyzed using descriptive statistics and comparative analysis. To model the burden of labor costs into its components and their respective proportions, descriptive statistical methods are used, while to analyze the variables -variables that affect wages and costs of workers used comparative analysis method. From the results of data processing, conclusions are drawn using the inductive method as follows: 1) The costs of workers are grouped into direct and indirect costs, and conditional costs, but the distribution of each cost component between permanent workers and freelancers is different; 2) Company profile, project profile, and worker profile. have an effect on wages and costs of construction workers.

Firing Costs and Job Loss: The Case of the Italian Jobs Act

A recent reform in the Italian labour market has modified the permanent contract by reducing firing costs. Using a discontinuity in the application of the reform, we evaluate its effect on the probability of being still employed about three and a half years later. In contrast with theoretical predictions, we find that the job survival probability is not smaller for the treated and even significantly larger in some cases. We investigate the composition of permanent workers hired after the reform and we find evidence of treated firms changing their recruitment strategy in favour of potentially more productive workers.