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.

The effect of gender and parenting daughters on judgments of morally controversial companies

Earlier findings suggest that men with daughters make judgments and decisions somewhat in line with those made by women. In this paper, we attempt to extend those findings, by testing how gender and parenting daughters affect judgments of the appropriateness of investing in and working for morally controversial companies (“sin stocks”). To do so, in Study 1 (N = 634) we investigate whether women judge the prospect of investing in sin stocks more harshly than men do, and test the hypothesis that men with daughters judge such investments less favorably than other men. In Study 2 (N = 782), we investigate the willingness to work in morally controversial companies at a significant wage premium. Results show that—for men—parenting daughters yields harsher evaluations of sin stocks, but no evidence that it lowers the propensity to work in such companies. This contrasts to the effect of gender: women reliably judge both investment and employment in morally controversial companies more harshly than men do. We suggest that an aversion towards morally controversial companies might be a partial determinant of the gender gap in wages.

Household Search and the Marital Wage Premium

We develop a model where selection into marriage and household search generate a marital wage premium. Beyond selection, married individuals earn higher wages for two reasons. First, income pooling within a joint household raises risk-averse individuals’ reservation wages. Second, married individuals climb the job ladder faster, as they internalize that higher wages increase their partner’s selectivity over offers. Specialization according to comparative advantage in search generates a premium that increases in spousal education, as in the data. Quantitatively, household search explains 10–33 percent and 20–58 percent of the premium for males and females, respectively, and accounts for its increase with spousal education. (JEL D83, J12, J16, J24, J31, J64)

Pengaruh Qualification Mismatch terhadap Upah Tenaga Kerja Di Indonesia

Penelitian ini bertujuan untuk memeriksa kejadian qualification mismatch dan pengaruhnya terhadap upah tenaga kerja di Indonesia. Dengan menggunakan SAKERNAS 2018, qualification mismatch diidentifikasi menggunakan metode normatif. Vertical mismatch diperoleh dengan membandingkan tingkat pendidikan dan golongan pekerjaan (KBJI 1 digit), sedangkan horizontal mismatch membandingkan klasifikasi jurusan pendidikan (3 digit ISCED-F) dan klasifikasi jabatan (KBJI 3 digit). Pada tahun 2018, tenaga kerja yang mengalami undereducation berjumlah sebesar 4.6% dan overeducation sebesar 27.9%. Sedangkan kejadian field of study mismatch terjadi pada 68.4% tenaga kerja di Indonesia. Pengaruh qualification mismatch terhadap upah tenaga kerja diestimasi dengan menggunakan metode ordinary least square. Hasil menunjukkan bahwa terdapat wage premium sebesar 5.24%-6.24% pada tenaga kerja yang mengalami undereducation. Wage penalty sebesar 6.26%-7.50% diperoleh tenaga kerja yang mengalami overeducation, sedangkan yang mengalami field of study mismatch sebesar 5.89%-6.80%.

Does college level the playing field? Socioeconomic gaps in the earnings of similar graduates: evidence from South Korea

The socioeconomic gap in participation at university is an enduring policy issue in South Korea, as in many other countries. However, less attention has been paid to the socioeconomic gap in the outcomes from tertiary education. This paper addresses this gap in the literature, using the Korean Education and Employment Panel (KEEP) data to investigate the extent to which the wages of Korean graduates who attended similar higher education institutions vary by socioeconomic background. The results show that a degree appears to largely level the playing field, in terms of earnings, between male graduates from poor and rich backgrounds. For females, by contrast, family background is still a strong predictor of earnings, even after allowing for institution attended and discipline of degree. Further, the wage premium for 2-year and 4-year college degrees also varies by family background. Four-year college degrees, contrary to popular belief, do not always attract a higher wage premium than 2-year college degrees, particularly for men from poorer family backgrounds.

The Impact of Higher Education Expansion on the Educational Wage Premium in Taiwan: 1985 to 2015

This research investigates the impact of higher education expansion on the educational wage premium from a long-term perspective in Taiwan. By using 1985 to 2015 Manpower Utilization Survey (MUS) data with the difference-in-difference-in-differences model (DDD), this study analyzes the change of the wage premium of university educated versus lower-than-university educated counterparts across the expansion of higher education since 1995. The number of universities in Taiwan tripled between 1995 and 2005, from 50 to more than 150, with upgrading of about 100 technology colleges and vocational schools additionally. Dramatic expansion of universities as well as the number of university graduates will shrink the university wage premium for the young generation who entered into the labor market after year 2000, but the older generation will be less affected. The empirical results show that the wages premium of university graduates of the younger generation is 12% to 21% lower than their older generation counterparts due to the higher-education expansion.