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Wage Differentials (wage + differential)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	86%
Humanities and Social Sciences	13%

Kinds of Wage Differentials

gender wage differential

Selected Abstracts

PRODUCT MARKET AND THE SIZE,WAGE DIFFERENTIAL*

INTERNATIONAL ECONOMIC REVIEW, Issue 1 2002
SHOUYONG SHI
Using directed search to model the product market and the labor market, I show that large plants can pay higher wages to homogeneous workers and earn higher expected profit per worker than small plants, although plants are identical except size. A large plant charges a higher price for its product and compensates buyers with a higher service probability. To capture this size- related benefit, large plants try to become larger by recruiting at high wages. This size,wage differential survives labor market competition because a high wage is harder to get than a low wage. Moreover, the size,wage differential increases with the product demand when demand is initially low and falls when demand is already high. [source]

MALE MARITAL WAGE DIFFERENTIALS: TRAINING, PERSONAL CHARACTERISTICS, AND FIXED EFFECTS

ECONOMIC INQUIRY, Issue 3 2010
WILLIAM M. RODGERS III
Using the National Longitudinal Survey of Youth 1979, we replicate previous estimates of the marital wage differential for white men, extend the analysis to African American men, then explain the within and between race differentials. We first control for formal job training, then for cognitive skills, parental background, and self-esteem with little effect. By contrast, the white differential but not the black differential disappears in fixed-effects estimation. We reconcile the cross-section/panel differentials by focusing on the distinct identification conditions employed by each technique. Men who never change marital status play a significant role in white cross-sectional estimates. (JEL J31, J12) [source]

CAN THE HUMAN CAPITAL APPROACH EXPLAIN LIFE-CYCLE WAGE DIFFERENTIALS BETWEEN RACES AND SEXES?

ECONOMIC INQUIRY, Issue 1 2007
HUOYING WU
Using data from the National Longitudinal Survey of Youth,1979 cohort (NLSY79), this paper shows the importance of postschool human capital investment in describing both gender and racial wage gaps. The empirical results suggest that male-female wage gaps, regardless of race, are mainly caused by gender differences in the human capital production process; generally, men gain more work experience and therefore have lower marginal costs of human capital production. Black-white lifetime wage differentials could partly result from higher implicit interest rates for blacks, while the deterioration of black males' relative economic status as they age can be attributed to higher depreciation rates of their human capital stock. (JEL J24, J30, C61) [source]

THE PATTERN AND EVOLUTION OF GEOGRAPHICAL WAGE DIFFERENTIALS IN THE PUBLIC AND PRIVATE SECTORS IN GREAT BRITAIN,

THE MANCHESTER SCHOOL, Issue 4 2007
DAVID BELL
Government policy on the nature of wage bargaining in the public sector can have important implications for the provision of public services. Using the New Earnings Survey, the Labour Force Survey and the British Household Panel Survey, we examine the size and evolution of public,private sector wage differentials across geographical areas within the UK and over time. Public sector bargaining structures have led to historically high wage premia, although these premia are declining over time. In high-cost low-amenity areas, such as the south-east of England, the public sector underpays relative to the private sector, therefore creating problems in recruitment to and provision of public services. Public sector labour markets are around 40 per cent as responsive to area differences in amenities and costs as are private sector labour markets. Differences in the degree of spatial variation between sectors are likely to remain, leading to persistent problems for the delivery of public services in some parts of the UK. Reform of public sector pay structures is likely to be costly, and so other non-pay policies need to be considered to increase the attractiveness of public sector jobs. [source]

The Role of Job Attributes in Understanding the Public-Private Wage Differential

INDUSTRIAL RELATIONS, Issue 3 2002
Keith A. Bender
This study uses a unique data set for Great Britain to investigate the impact of differences in job attributes on the public-private wage differential. The study reveals that (1) there are substantial differences in wage structure between the two sectors, particularly finding that the public-sector wage structure is less sensitive to differences in the attributes of jobs, and (2) differences in job attributes play in a major role in accounting for pay differences across sectors. [source]

Are Union Wage Differentials in the United States Falling?

INDUSTRIAL RELATIONS, Issue 3 2008
Article first published online: 21 MAY 200, MCKINLEY L. BLACKBURN
This paper addresses several estimation and specification issues in estimating union wage differentials in the United States over the last two decades. Estimates provide strong evidence of a decline in the differential for women. For men, the differential appears to have declined for a person with overall average characteristics, but not for a male with characteristics of the average unionized male. [source]

Employer Wage Differentials in Germany: A Comparative Note

LABOUR, Issue 3 2002
Gesine Stephan
The paper contributes to the growing empirical literature on employer wage differentials, presenting first estimates for West Germany and comparing them with recent findings from other studies for the USA, France and Denmark. The empirical results show that the variation of global employer wage differentials is comparatively low in West Germany and has remained stable during the first half of the 1990s. This low dispersion results from wage setting for blue-collar workers, while cross-country differences are negligible for white-collar workers. Employer wage differentials have, however, become more important for the remuneration of West German blue-collar workers during the period investigated. [source]

Comparisons in Gender Wage Differentials and Discrimination between Germany and the United Kingdom

LABOUR, Issue 3 2001
Mick Brookes
Due to the lack of consistent data, direct and robust comparisons of cross-country labour markets have been virtually impossible. This study uses a new panel data series that controls for inconsistencies, thus overcoming this problem. This study estimates gender wage differentials and gender discrimination in the German and UK labour markets. Panel estimates are used to identify general wage differences between the two countries, with cross-sectional comparisons undertaken to identify changes that have occurred between 1991 and 1993, that are consistent with known labour market policies. It is found that gender wage differentials are greater in the UK than Germany with employer discrimination against females attributed with the majority of the difference in both countries. [source]

Wage Differentials between Ethnic Groups in Switzerland

LABOUR, Issue 1 2001
Augustin De Coulon
This paper analyses the average wage differentials between various groups of immigrants and the Swiss workers. Classical Oaxaca-Blinder decompositions are applied to a sample of 7,494 males (whose 1,070 immigrants) interviewed for the 1995 Swiss Labour Force Survey. Education and experience before and after migration are separately considered in two different ways. We control for sample selection in the wage and salary sector. We also investigate earnings differentials between natives and immigrants who arrived in the country before the age of 6. Our main results are that the part of differentials due to difference in coefficient varies strongly with different ethnic groups considered, that education is a strong determinant of the difference in observed characteristics and that second generation immigrants are fairly well assimilated in the Swiss labour market. [source]

Inter-Industry Wage Differentials in Great Britain

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2000
Andrew Benito
The paper considers the determination of earnings of private sector employees in Great Britain, focusing upon the importance of industry affiliation in this process. Whilst cross-sectional estimates, using waves 1 to 4 of the British Household Panel Survey, suggest industry status is of considerable importance, much of this variation is removed by estimating earnings equations by fixed effects methods. Estimated differentials are not inversely related to the steepness of age-earnings pro(r)les in an industry, do not appear to vary over time and are positively related to industry profitability. [source]

Gender Wage Differentials and Occupational Segregation in Hong Kong, 1981,1996

PACIFIC ECONOMIC REVIEW, Issue 3 2001
Yun-Wing Sung
This paper analyses gender wage differentials and the role of occupational segregation in Hong Kong. It is found that the female,male earnings ratio increased substantially from 0.710 in 1981 to 0.839 in 1996. A decomposition which takes into account occupational differences shows that the gender pay gap is mostly within occupations and most of the intra-occupation wage gap is unexplained. The gender pay differential due to occupational differences is small; in fact, the overall occupational segregation favours females in Hong Kong. [source]

Labor Mobility within China: Border Effects on Interregional Wage Differentials

CHINA AND WORLD ECONOMY, Issue 2 2010
Cheng Li
O53; R12; R23 Abstract Labor migration is institutionally restricted within China under the hukou system, China's registration system. However, what is the pecuniary impact of labor immobility on interregional wage inequality? To answer this question, we derive a simple wage gap equation including educational attainment, market potential and provincial border indicators. The regressions based on city and sector-level data show that, other things being equal, the wage dispersions within Chinese provincial borders are significantly less pronounced than those among provinces. Such border effects on spatial wage differentials, which have been shown to pervasively exist in all sectors considered in the present paper, reflect the distortions generated by migration controls. Finally, we show that despite the recent hukou reforms aimed at relaxing the restrictions on population movement, border effects appear to persisted over the period 2003,2005. [source]

Wage differentials between the public and private sectors in India,

JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 3 2007
Elena Glinskaya
Abstract This study uses 1993,94 and 1999,2000 rounds of India Employment and Unemployment survey to investigate wage differentials between the public and private sectors. To obtain robust estimates of the wage differential, we apply three econometric techniques each relying on a different set of assumptions about the process of job selection and wage formation. All three methods show that differences in wages between public sector workers and workers in the formal-private and informal-casual sectors are positive and high. On average, the public sector premium ranges between 62 and 102 per,cent over the private-formal sector, and between 164 and 259 per,cent over the informal-casual sector, depending on the choice of methodology. The wage differentials in India tend to be higher in rural as compared to urban areas, and are higher among women than among men. The wage differential also tends to be higher for low-skilled workers. There is considerable evidence of an increase in the wage differential between 1993,1994 and 1999,2000. Copyright © 2007 John Wiley & Sons, Ltd. [source]

Education, cost of living and regional wage inequality in Brazil,

PAPERS IN REGIONAL SCIENCE, Issue 2 2002
Carlos R. Azzoni
Brazil; regional wage inequality; cost of living differences; education and regional inequality Abstract The objective of this article is to analyze wage inequality among the 10 largest metropolitan regions in Brazil in the 1990s. We assess the extent to which worker characteristics (education, age, gender, race, position in the family) and job characteristics (occupational position, sector, experience) can explain wage inequality. The analysis is made both with regional-nominal and with regional-real wage data. In the second case regional price indexes are used to control for differences in cost of living among regions. Wage differentials in Brazil were slightly lowered when control variables were introduced, but the leftover inequality remained high. The results indicate that cost of living levels do have a role in explaining wage inequality in Brazil, but even after controlling for this factor, the remaining regional differentials are still important. [source]

Wage differentials and state-private sector employment choice in Yugoslavia*

THE ECONOMICS OF TRANSITION, Issue 3 2003
Michael M. Lokshin
Abstract In this study we use the newly available Yugoslavian Labor Force Survey data to investigate wage differentials and employment decisions in the state and private sectors in Yugoslavia. For the analysis we use three empirical models that rely on different statistical assumptions. We extend the standard switching regression model to allow non-normality in the joint distribution of the error terms. After correcting for the sector selection bias and controlling for workers' characteristics we find a private sector wage advantage. The wage premium is largest for workers with low education levels and declining for workers with higher educational levels. Given the regulatory and tax policies that pushed the private sector into the informal sphere of the economy during the period covered by our data, we argue that the state/private wage gap is likely to grow in the future. This will make it increasingly difficult for the state sector to attract and retain highly skilled employees. [source]

MALE MARITAL WAGE DIFFERENTIALS: TRAINING, PERSONAL CHARACTERISTICS, AND FIXED EFFECTS

Unemployment, Growth, and Trade Unions

GROWTH AND CHANGE, Issue 1 2001
Henri L. F. De Groot
This paper develops a two-sector endogenous growth model with a dual labor market caused by the operation of trade unions. Trade unions strive for the extraction of rents from the growth generating imperfectly competitive primary sector. This union behavior results in a non-competitive wage differential between the primary and secondary (perfectly competitive) sector. How the relationship between growth and unemployment depends on the institutional details of the labor market is analyzed. In general, growth and unemployment are intimately related for two reasons. Unemployment affects the scale of operation of the economy and thereby the growth rate. Growth affects inter-temporal decisions of workers about where to allocate on the labor market once they are laid off, and thereby it affects equilibrium unemployment. [source]

Trade Union Decline and Union Wage Effects in Australia

INDUSTRIAL RELATIONS, Issue 4 2005
C. JEFFREY WADDOUPS
Union density in Australia fell precipitously in the 1990s. This study investigates how union wage effects may have changed as a result. The findings from 1993 data suggest that union/nonunion wage differentials were very small, especially among workers in high-density industries. By 2001 the overall union wage effect had increased significantly; however, the union/nonunion wage differential was no longer correlated with union density at the industry level. [source]

The Role of Job Attributes in Understanding the Public-Private Wage Differential

PRODUCT MARKET AND THE SIZE,WAGE DIFFERENTIAL*

Equilibrium Search Models and the Transition From School To Work

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2001
Audra J. Bowlus
This paper applies the Burdett,Mortensen (1998) equilibrium search model to study the school to work transitions of U.S. high school graduates. We consider the case of discrete firm heterogeneity and provide a computational method to obtain the MLE. Our results show that unemployed blacks receive fewer offers than whites and employed blacks are more likely to lose their jobs. Importantly, employed blacks and whites receive job offers at the same rate. Assigning the whites' search parameters to the blacks and re-solving reveals that 75 percent of the observed wage differential is explained by the job destruction rate differences. [source]

Wage differentials between the public and private sectors in India,

Why Do Women's Wages Increase So Slowly Throughout Their Career?

LABOUR, Issue 2 2008
A Dynamic Model of Statistical Discrimination
We provide a dynamic model of statistical discrimination, which integrates specific human capital decisions: on-the-job training investment and wages are endogenously determined. We reveal a small wage differential at the beginning of women's career, but women's wages increase more slowly; this is partly due to a lower level of human capital investment by women and partly because firms smooth training costs between different periods. [source]

Occupational Attainment and Earnings: The Case of the Disabled

LABOUR, Issue 3 2004
Peter Skogman Thoursie
It extends the traditional wage decomposition by incorporating explained and unexplained differences in occupational attainment. Data from the Swedish Level of Living Survey for 1981 and for 1991 have been used. The results show that in both years the disabled worked in low-level occupations to a greater extent relative to the non-disabled. This is due to the fact that disabled workers have lower qualifications. The unexplained component due to differences in returns on wage determinants is insignificant in the 1981 case but is highly significant in 1991, constituting around 50,60 per cent of the average log wage differential. [source]

Efficiency-wage Unemployment and Economic Welfare in a Model of Endogenous Growth

LABOUR, Issue 4 2001
Jürgen Meckl
This paper examines positive and normative implications of efficiency-wage-induced unemployment within a model of endogenous growth. Sector-specific impacts of the wage rate on labour efficiency establish a correlation between the growth rate and the rate of unemployment. The sign of this correlation is determined by the intersectoral wage differential. Despite the existence of unemployment, decisive positive properties of the full-employment model are preserved. However, welfare implications of the full-employment model may be reversed. The optimal policy can be to reduce growth, while at the same time raising unemployment. [source]

The Persistence of the Female Wage Disadvantage

THE AUSTRALIAN ECONOMIC REVIEW, Issue 1 2001
Anh T. Le
Studies of the Australian labour market during the 1980s reported that the gender wage differential narrowed. However, a different story emerged during the 1990s when the gender pay gap persisted. A large part of the pay gap is attributable to different ,treatments' of men and women in the labour market. This article examines whether the female wage-disadvantaged state is a temporary or permanent phenomenon. The results show that while there is some mobility in the female wage distribution, there also exists a high degree of stickiness. It is argued that the wage-disadvantaged state for females is generally not a temporary phenomenon. [source]

Undereducation and Overeducation in the Australian Labour Market,

THE ECONOMIC RECORD, Issue 2005
DERBY VOON
This paper uses data from the 1996 Census of Population and Housing Household Sample File (HSF) to study the incidence of mismatch between workers' educational attainments and the requirements of their jobs, and the earnings consequences of this mismatch. It also examines whether mismatch contributes to the explanation of the gender wage differential in the Australian labour market. It is found that approximately 15.8 per cent of men and 13.6 per cent of women are overeducated, whereas approximately 18.5 per cent of women and 13.7 per cent of men are undereducated. Substantial earnings consequences are found to be associated with this mismatch, with surplus schooling yielding relatively low returns. The results suggest that mismatch does not account for the gender wage gap in the Australian labour market; rather the gender wage differential is entrenched in the fundamentals of pay determination. [source]

Continued decline for ethnic minorities in the transition?

THE ECONOMICS OF TRANSITION, Issue 4 2003
Changes in ethnic earnings differentials in Bulgaria
Abstract Using three Bulgarian cross-sectional household surveys from 1986, 1993 and 1997, this essay shows that the mean log wage differential between ethnic Bulgarians and Turks increased from 0.1615 in 1986 to 0.2874 in 1993 and again to 0.4075 by 1997. Bulgarian gains over ethnic Turks in the early transition are related to both changes in the relative returns to skill and changes in the composition of demand for goods and services as the country moved toward a market economy. The Turks began the transition with fewer years of education than the Bulgarians, and began to close the education gap over this time. The Bulgarians, however, were more likely to have obtained more general secondary and university degrees than the ethnic Turks , degrees that, in contrast to technical or vocational degrees, are experiencing increased remuneration in the transition. With more of an asset that has become more valuable, the ethnic Bulgarians improved their relative position. [source]

Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds

ECONOMETRICA, Issue 2 2007
Richard Blundell
This paper examines changes in the distribution of wages using bounds to allow for the impact of nonrandom selection into work. We show that worst case bounds can be informative. However, because employment rates in the United Kingdom are often low, they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions, we find convincing evidence of an increase in inequality within education groups, changes in educational differentials, and increases in the relative wages of women. [source]