Wage Differences between Polish and Romanian Intra-EU Migrants in a Flexi-Secure Labour Market: An Over-Time Perspective

By merging longitudinal register data and a customised survey, this article explores whether sectoral segmentation, migrants’ pre- and post-migration human capital and social structures, shape wages of Polish and Romanian long-term migrants to Denmark. Pronounced wage differences in favour of Polish migrants are evident in the first two years in Denmark, notwithstanding the same regulatory context under the free movement of labour in the EU. Wage differences persist – albeit at a considerably lower level – throughout the eight-year period, mainly because of significant sectoral segmentation. Sectoral segmentation not explained by demographics, pre-migration human capital or crisis effects, might indicate categorical stereotyping by employers. Regarding (co-ethnic) social networks, at least for the early stages of migration, the study does not find significant effects on wages. While the evidence shows a positive return on wages of formal higher education taken post migration, this is not the case for further training and Danish language education.

Assortative Matching or Exclusionary Hiring? The Impact of Employment and Pay Policies on Racial Wage Differences in Brazil

We measure the effects of firm policies on racial pay differences in Brazil. Non-Whites are less likely to be hired by high-wage firms, explaining about 20 percent of the racial wage gap for both genders. Firm-specific pay premiums for non-Whites are also compressed relative to Whites, contributing another 5 percent for that gap. A counterfactual analysis reveals that about two-thirds of the underrepresentation of non-Whites at higher-wage firms is explained by race-neutral skill-based sorting. Non-skill-based sorting and differential wage setting are largest for college-educated workers, suggesting that the allocative costs of discriminatory hiring and pay policies may be relatively large in Brazil. (JEL J15, J24, J31, J41, J46, J71, O15)

Characteristics of industries determining high differentiation of wages in Russia

The problem of reducing the differentiation of wages in Russia does not lose its relevance. The fund ratio is constantly decreasing, but still exceeds world standards. Its reduction due to growth of the minimum wage has already gone beyond acceptable boundaries. Beyond them, the qualifying wage differences decrease. Currently, they have already begun to contradict one of the fundamental functions of remuneration, namely the incentive function. This raises the question of finding opportunities to reduce the ratio of funds at the expense of wages in the 10th decile of the distribution. Wages in this decile were studied by industry (types of economic activity). Industries in which earnings in the 10th decile are higher than the average for the decile are selected for analysis. These industry earnings affect the value of the fund ratio, limiting its decline. The characteristics of the selected industries are reviewed. These are qualifications of personnel, financial and economic situation of enterprises, their form of ownership, and sectoral coefficient of funds. It has been established that the value of the fund ratio exceeding world standards is, in all likelihood, provided mainly by three industries. These include activities in the field of information and communication; financial and insurance activities; professional, scientific and technical activities. Administrative regulation of wages should be applied to the segments of these industries, where high wages are not consistent with the quality of services provided.

Analysis of institutional factors that cause gender pay gaps in Ukraine

Despite Ukraine’s commitments regarding non-discrimination and ensuring gender equality, the issue of gender pay gaps remains relevant. The aim of the study is to identify factors that cause gender pay gaps and assess their impact on wage differences at the institutional level in Ukraine. Based on the generalization of the research results, macroeconomic and microeconomic approaches to the grouping of factors that cause gender pay gaps have been identified. Based on the analysis of statistical data, it has been determined that gender occupational segregation exists in Ukraine, as most women work in low-wage economic activities; women are more likely to lead businesses with a lower level of wages. As the result of the assessment of the impact of various factors on wage differences, it has been found that gender pay gaps are the smallest in the public sector. Part-time employment in 2018 affected gender pay gaps by 3.8%. Based on the correlation factor analysis, the positive impact of increasing the minimum wage and innovative development on reducing gender pay gaps has been substantiated. The hypothesis regarding the impact of collective bargaining on gender pay gaps at the organizational level has been refuted. Promising measures have been identified that would help to create equal opportunities and reduce gender pay gaps, and thus to fulfill Ukraine’s commitments in the context of European integration.

Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?

This paper focuses on the structure and extent of wage differences among graduates of different higher-education institutions in Germany. We ask how large these differences are and how they relate to fields of study and regional labour markets. The results from our application of cross-classified random-effects models to a cohort of the DZHW Graduate Panel show that there is a considerable amount of wage variation depending on the graduates’ alma mater. However, this variation can be fully explained by structural characteristics: Selection based on individual characteristics is of only minor importance, while regional labour markets do matter. Most of all, however, the differences relate to fields of study.

Wage Equalization and Regional Misallocation: Evidence from Italian and German Provinces

Italy and Germany have similar geographical differences in firm productivity – with the North more productive than the South in Italy and the West more productive than the East in Germany – but have adopted different models of wage bargaining. Italy sets wages based on nationwide contracts that allow for limited local wage adjustments, while Germany has moved toward a more flexible system that allows for local bargaining. We find that Italy exhibits limited geographical wage differences in nominal terms and almost no relationship between local productivity and local nominal wages, while Germany has larger geographic wage differences and a tighter link between local wages and local productivity. As a consequence, in Italy, low productivity provinces have higher non-employment rates than high productivity provinces, because employers cannot lower wages, while in Germany the relationship between non-employment and productivity is significantly weaker. We conclude that the Italian system has significant costs in terms of forgone aggregate earnings and employment because it generates a spatial equilibrium where workers queue for jobs in the South and remain unemployed while waiting. If Italy adopted the German system, aggregate employment and earnings would increase by 11.04% and 7.45%, respectively. Our findings are relevant for other European countries.

Challenging Heteronormativity: An Analysis of the Effect of Sexual Orientation on Earnings in Spain

Using data from the Spanish Labor Force Survey between 2006 and 2018, we explore whether sexual orientation causes wage differences for partnered women and men in Spain. The study confirms that men in same-sex couples significantly earn less than men in opposite-sex couples, confirming our hypothesis for the “hegemonic masculinity premium.” Women in same-sex couples also outearn women in opposite-sex couples, but this effect disappears after controlling for differences in human capital characteristics. Despite the high degree of social acceptance of homosexuality in Spain, partnered gay men are not able to avoid the negative earnings effects of discrimination in the labor market.

Well-Being at Work as Human Capital

Chapter 12 turns to human capital. Human capital is typically associated with the stock of skills and experience that an employee accumulates through education and training. However, the chapter refers to it in a broader context of well-being at work. This is affected not just by wages and working hours but also by the degree of hierarchy in an organization, management style, wage differences, prospects for upward mobility, and corporate identity. Alongside hierarchy, status, career progression, and inclusiveness, corporate culture (defined as shared beliefs, understanding, values, goals, and practices) plays a key role in determining well-being at work. The chapter records that it is possible to construct actionable metrics of well-being at work based on these factors that can be used to identify pain points within firms and the actions that are needed to address them.