Categorical Distinctions and Claims-Making: Opportunity, Agency, and Returns from Wage Negotiations

In this article, we examine wage negotiations as a specific instance of claims-making, predicting that the capacity to make a claim is first a function of the position, rather than the person, and that lower-status actors—women, migrants, fixed-term, part-time, and unskilled workers—are all more likely to be in positions where negotiation is not possible. At the same time, subordinate-status actors may be less likely to make claims even where negotiation is possible, and when they do make wage claims they may receive lower or no returns to negotiation. Analyses of wage negotiations by more than 2,400 German employees largely confirm these theoretical expectations, although the patterns of opportunity, agency, and economic returns vary by categorical status. All low-status actors are more likely to be in jobs where negotiation is not possible. Women, people in lower-class jobs, and people with temporary contracts are less likely to negotiate even when given the opportunity. Regarding returns, agency in wage claims does not seem to improve the wages of women, migrants, or working-class individuals. The advice to “lean-in” will not substantially lower wage inequalities for everyone, although men who lean in do benefit relative to men who do not.

GVC and wage dispersion. Firm-level evidence from employee?employer database

Research background: Wage inequalities are still part of an interesting policy-oriented research area. Given the developments in international trade models (heterogeneity of firms) and increasing availability of micro-level data, more and more attention is paid to wage differences observed within and be-tween firms. Purpose of the article: The aim of the paper is to address the research gap concerning limited cross-country evidence on a nexus of wage inequality?global value chains (GVCs), analysed from the perspective of wage inequality components within and between firms. Methods: This paper uses a large employee?employer database derived from the European Structure of Earnings Survey (SES), combined with sector-level indicators of GVC involvement based on the World Input-Output Database (WIOD). As a result, a rich database covering more than 7.5 million observations is created. The regression-based decomposition modelling technique developed by Fiorio and Jenkins (2010) is used to identify the contributions of different factors to wage inequalities, focusing on the components within and between firms. Findings & value added: The analysis presented in this paper aimed to show the contribution of GVC involvement, among various other factors, to the observed inequality of wages. Due to the use of a rich database that merges employer and employee data, the effects materialised with respect to different types of wages could be analysed separately, in particular components between and within firms. The general conclusion from the regression-based decomposition in log wages is that GVCs contribute marginally to the observed wage inequality in the European sample analysed in this paper. Some differences confronting the components within and between firms (the latter dominates) are observed; there is also certain intra sample heterogeneity in the estimated results (e.g. due to sector type or country group), but the general result is robust.

A Comparative Analysis of Men and Women’s Hourly Earnings in Poland with Particular Emphasis on the Education Sector

Research background: There is the lack of a sector based analysis of wages for different genders. We present such an analysis regarding the education sector in Poland. purpose: The study aims to compare hourly earnings for men and women in Poland, with particular emphasis on the education sector. We go beyond the simple Oaxaca-Blinder decomposition and compare earnings distributions. Research methodology: First, we examine the hourly earnings inequalities using the Oaxaca-Blinder decomposition procedure. Second, we extend this procedure to different quantile points along the whole earnings distribution by the use of the residual imputation approach. The results are obtained for the whole sample (people of all professions), for a group of teaching professionals, and for university and higher education teachers. Results: The magnitude of the gender hourly wage gap varies substantially depending on how the sample of interest is defined. It also heavily depends on the quantile of the analyzed distribution. Although the average gap in the educational sector is negative, the differences turn positive and increase with higher quantiles of distribution in favor of men. The disparity was most pronounced for university top professionals. Novelty: Our results provide novel insights into the sectoral dimension of the income gap. We analyze inequalities over whole distribution in the educational sector and compare them with wage inequalities in enterprises employing more than 9 people.

Social Class, Union Strategies, and Preference in Wage Outcomes in Norway

This article explores a potential socialization effect of unions on member preferences in wage outcomes and bargaining structures. This challenges notions of union wage policies simply reflecting the material self-interest of their constituency. In their formative role, unions can either propagate more redistribution in society, that is, increasing equality, or increasing societal inequalities, arguing instead for equity. However, equity could be measured either individually or collectively, where the latter would mean increasing societal wage inequalities while favouring intra-union equality. By putting perspectives on worker preferences and political economic theories in dialogue with the literature on the role of unions in constructing notions of equality/equity, we discuss on union strategy as it relates to their socialization effects and members’ attitudes towards income inequality and bargaining structures. Analysing survey data, we find that socioeconomic status has greater influence on preferred wage outcomes, while union membership has more influence over bargaining structure.

Differential Education Subsidy Policy and Wage Inequality Between Skilled, Semi-skilled and Unskilled Labour: A General Equilibrium Approach

The article investigates the effects of secondary (including vocational) and higher-education subsidies on wage inequalities between skilled, semi-skilled and unskilled workers, and unemployment in a small open developing economy in terms of a two-sector Harris–Todaro dynamic general equilibrium framework. The results show that skilled–unskilled and skilled–semi-skilled wage inequalities depend on factor intensity conditions, while semi-skilled–unskilled wage inequality is determined by the level of skill formation in the economy. There is a trade-off between the wage inequalities of skilled–semi-skilled and semi-skilled–unskilled workers due to secondary education subsidy; the trade-off also exists with respect to higher-education subsidy if the manufacturing sector is more skilled labour intensive. However, if the manufacturing sector is capital intensive, higher-education subsidy is detrimental for both types of wage inequalities in the initial years of skill formation but might have favourable effects when the skill endowment is high. Both types of subsidies reduce unemployment in the initial periods, but higher-education subsidy accentuates it when skilled labour supply expands in the economy.

Does it pay to be green? An exploratory analysis of wage differentials between green and non-green industries

PurposeThis paper investigates the potential wage impacts of a shift to more environmentally sustainable production patterns.Design/methodology/approachThe empirical analysis is carried out using labour force survey data and interval regressions.FindingsEstimates at the individual level suggest that small wage differentials exist: individuals employed in green industries earn about seven per cent more than those working in non-green industries.Originality/valueTo date, very little is known about the characteristics of jobs in the green industry and by extension, the labour force effects that can emerge or change as a result of transitioning towards a greener economy. While exploratory in nature, this analysis seeks to shed light on an underdeveloped area of research, namely, wage inequalities associated with transitioning towards green growth.