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  1. Taxes and technological determinants of wage inequalities
    France 1976-2010
    Author: Bozio, Antoine; Breda, Thomas; Guillot, Malka
    Published: [2016]
    Publisher:  Centre de recherche en economie et statistique, [Palaiseau]

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    Language: English
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    Format: Online
    Series: Série des documents de travail / Centre de recherche en economie et statistique ; no. 2016, 07
    Subjects: wage inequality; labour cost; Social Security contributions; tax incidence
    Scope: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  2. The evolution and determination of earnings inequality in post-apartheid South Africa
    Author: Finn, Arden; Leibbrandt, Murray V.
    Published: August 2018
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    In this paper we identify some of the drivers of changes in the distribution of earnings and earnings inequality in the South African labour market between 2000 and 2014. Although the overall level of earnings inequality between 2000 and 2011 was... more

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    In this paper we identify some of the drivers of changes in the distribution of earnings and earnings inequality in the South African labour market between 2000 and 2014. Although the overall level of earnings inequality between 2000 and 2011 was high and relatively stable, there were nonetheless some interesting shifts in the factors generating inequality. The earnings data from mid-2012 to 2014, however, show a steep increase in inequality. It is difficult to determine how much of this is a "real" change, and how much is driven by other factors such as measurement error and changes in data collection and processing. For this reason, all results are presented in a 2000-14, 2000-11, and 2011-14 format. We use RIF regressions to decompose changes in average earnings, as well as changes in the Gini coefficient and different percentile ratios. Our main finding is that changes in the returns to education and changes in the returns to potential experience were the most important determinants of changes in inequality, with the former generally being inequality-enhancing, and the latter inequality-reducing.

     
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    Language: English
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    Format: Online
    ISBN: 9789292565251
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    hdl: 10419/190132
    Series: WIDER working paper ; 2018, 83
    Subjects: RIF decomposition; South Africa; wage inequality
    Scope: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  3. Globalization and equality
    a cross-country analysis
    Author: Urata, Shūjirō; Baek, Youngmin
    Published: [2024]
    Publisher:  Asian Development Bank Institute, Tokyo, Japan

    Using a cross-sectional dataset of 13 manufacturing sectors in 27 Asian developing countries from 2008 to 2022, we investigated the impact of the presence of foreign firms on wages of workers from domestic firms. First, we found that the average wage... more

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    Using a cross-sectional dataset of 13 manufacturing sectors in 27 Asian developing countries from 2008 to 2022, we investigated the impact of the presence of foreign firms on wages of workers from domestic firms. First, we found that the average wage of workers from foreign firms is higher than that of workers from domestic firms. This pattern is more pronounced in the cases of low-income countries and the service sector. Second, the average wage of workers from domestic firms that are exposed to foreign firms is higher than that of domestic firms without exposure to foreign firms, indicating a spillover of wages from foreign to domestic firms. Third, the presence of foreign firms is found to widen the wage gap between skilled and unskilled workers. Based on our findings, we argue that developing countries should improve their FDI environment to attract FDI and upgrade the quality of unskilled labor by providing education and training, in order to reduce the wage gap.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
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    hdl: 10419/301958
    Series: ADBI working paper series ; no. 1453 (June 2024)
    Subjects: foreign direct investment; wage spillovers; wage inequality
    Scope: 1 Online-Ressource (circa 22 Seiten), Illustrationen
  4. Financial integration and wage inequality
    evidence from European countries
    Author: Yun, Jinyeong
    Published: [2024]
    Publisher:  Philipps-University Marburg, School of Business and Economics, Marburg

    In this paper, I study the impact of financial integration on between-firm wage inequality using an unbalanced panel for 20 European countries over the period 1999-2021. With the impulse response functions estimated using local projections, I find... more

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    In this paper, I study the impact of financial integration on between-firm wage inequality using an unbalanced panel for 20 European countries over the period 1999-2021. With the impulse response functions estimated using local projections, I find that financial integration, as measured by the sum of external assets and liabilities, is associated with increased wage inequality within industries. These effects are more pronounced in the mid-term rather than in the short-term. The direction of financial integration, i.e., whether it involves an increase in external assets or liabilities, also matters: inward finan- cial integration significantly increases wage inequality, while outward financial integration does not. I also provide empirical evidence on the channel of distributional effects of financial integration. The financial integration shocks widen the capital intensity (the capital-to-labor ratio) gap within industries, which in turn widens the labor productivity gap. Through this channel, financial integration may affect between-firm wage inequality. Furthermore, the impact of financial integration on wage inequality depends on the external financial dependence of individual industries, while the moderating effect of financial development in each country is less definitive.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
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    hdl: 10419/301237
    Series: Joint discussion paper series in economics ; no. 2024, 10
    Subjects: Financial integration; wage inequality; local projections
    Scope: 1 Online-Ressource (circa 36 Seiten), Illustrationen
  5. Job mobility and assortative matching
    Author: Braunschweig, Luisa; Dauth, Wolfgang; Roth, Duncan
    Published: August 2024
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We examine the development of worker-firm matching over the career due to job mobility. Using administrative employer-employee data covering the universe of German employees, we measure the degree of assortative matching as the correlation of worker... more

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    We examine the development of worker-firm matching over the career due to job mobility. Using administrative employer-employee data covering the universe of German employees, we measure the degree of assortative matching as the correlation of worker and firm quality measures obtained from an AKM wage decomposition. We also introduce a novel measure based on the distance between the estimates of worker and firm quality. Both measures indicate that the degree of assortative matching, on average, increases with each job move. For high-quality workers, this can be explained by job ladder models as these workers move to higher-quality firms. Low-quality workers are matched less assortatively at the beginning of their careers, but also manage to climb the job ladder at first. For this group, the increase in assortative matching increases after the third job, when they fall down the job ladder. Changes in worker-firm matching are also relevant for the extent of life cycle inequality. We estimate that the increase in assortative matching accounts for around 25% of the increase in wage inequality over the life cycle.

     
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    Language: English
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    hdl: 10419/305649
    Series: Discussion paper series / IZA ; no. 17207
    Subjects: assortative matching; wage decomposition; job mobility; life cycle; wage inequality; firms
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  6. Scarce workers, high wages?
    Author: Börschlein, Erik-Benjamin; Bossler, Mario; Popp, Martin
    Published: November 2024
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Labor market tightness tremendously increased in Germany between 2012 and 2022. We analyze the effect of tightness on wages by combining social security data with unusually rich information on vacancies and job seekers. Instrumental variable... more

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    Labor market tightness tremendously increased in Germany between 2012 and 2022. We analyze the effect of tightness on wages by combining social security data with unusually rich information on vacancies and job seekers. Instrumental variable regressions reveal positive elasticities between 0.004 and 0.011, implying that higher tightness explains between 7 and 19 percent of the real wage increase. We report greater elasticities for new hires, high-skilled workers, the Eastern German labor market, and the service sector. In particular, tightness raised wages at the bottom of the wage distribution, contributing to the decline in wage inequality over the last decade.

     
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    Source: Union catalogues
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    Media type: Book
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    Series: Discussion paper series / IZA ; no. 17447
    Subjects: labor market tightness; wages; labor shortage; occupations; wage inequality
    Scope: 1 Online-Ressource (circa 75 Seiten), Illustrationen
  7. Ability distribution and dynamics of wage inequality
    unintended consequences of human capital accumulation
    Author: Borissov, Kirill; Minabutdinov, Aleksey; Popov, Roman
    Published: [2024]
    Publisher:  CER-ETH - Center of Economic Research at ETH Zurich, Zürich

    This study investigates the dynamics of between-group and within-group wage inequality in a model with heterogeneous learning abilities putting a key emphasis on the shape of the ability distribution. In our model, intergenerational human capital... more

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    This study investigates the dynamics of between-group and within-group wage inequality in a model with heterogeneous learning abilities putting a key emphasis on the shape of the ability distribution. In our model, intergenerational human capital externalities incentivize individuals to invest in skills, consequently reshaping the composition of the labor force by expanding the proportion of skilled workers from the lower end of ability distribution. We show that if, in the process of human capital accumulation, the skill premium increases, then wage inequality among skilled workers, as measured by the Gini coefficient, also increases. For several common distributions of abilities, the composition effect contributes to an upward shift in the between-group inequality and inequality among skilled workers. We also demonstrate that the composition effect contributes to an increase in wage inequality when ability distributions are represented by empirical distributions of students' assessment scores.

     
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    hdl: 10419/301192
    Series: Working paper / CER-ETH - Center of Economic Research at ETH Zurich ; 24, 393 (July 2024)
    Subjects: human capital; wage inequality; skill premium; composition effect
    Scope: 1 Online-Ressource (circa 32 Seiten), Illustrationen
  8. The role of flexible wage components in gender wage difference
    Author: Boza, István; Reizer, Balázs
    Published: July 2024
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    A main driver of the gender wage gap is that women earn a lower firm-specific wage premium than men. We document the role of flexible wage components in driving both within-firm and between-firm gender differences in firm premia. For this purpose, we... more

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    A main driver of the gender wage gap is that women earn a lower firm-specific wage premium than men. We document the role of flexible wage components in driving both within-firm and between-firm gender differences in firm premia. For this purpose, we link wage survey data on performance payments and overtime to an administrative linked employer-employee dataset from Hungary. We find that the gender gap in firm premia is negligible at firms that do not pay either performance payments or overtime, while it is more than 11 percent at firms where all employees receive performance- and overtime payments. These patterns are also present when we control for differences in the labor productivity of firms or after composition differences are accounted for using AKM models. Finally, a decomposition exercise shows that performance payments and overtime payments contribute 60 percent to the gender gap in firm premia and 25 percent to the overall gender gap.

     
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    hdl: 10419/302642
    Series: Discussion paper series / IZA ; no. 17125
    Subjects: wage inequality; bargaining; sorting; overtime; performance payments
    Scope: 1 Online-Ressource (circa 50 Seiten), Illustrationen
  9. The contribution of employer changes to aggregate wage mobility
    Author: Hollandt, Nils Torben; Müller, Steffen
    Published: August 2024
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Wage mobility reduces the persistence of wage inequality. We develop a framework to quantify the contribution of employer-to-employer movers to aggregate wage mobility. Using three decades of German social security data, we find that inequality... more

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    Wage mobility reduces the persistence of wage inequality. We develop a framework to quantify the contribution of employer-to-employer movers to aggregate wage mobility. Using three decades of German social security data, we find that inequality increased while aggregate wage mobility decreased. Employer-to-employer movers exhibit higher wage mobility, mainly due to changes in employer wage premia at job change. The massive structural changes following German unification temporarily led to a high number of movers, which in turn boosted aggregate wage mobility. Wage mobility is much lower at the bottom of the wage distribution, and the decline in aggregate wage mobility since the 1980s is concentrated there. The overall decline can be mostly attributed to a reduction in wage mobility per mover, which is due to a compositional shift toward lower-wage movers.

     
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    hdl: 10419/305701
    Series: Discussion paper series / IZA ; no. 17259
    Subjects: wage mobility; wage inequality; wage premiums; inequality persistence; employer changes; german linked-employeremployee data; business dynamism
    Scope: 1 Online-Ressource (circa 63 Seiten), Illustrationen
  10. Global value chains, employment, and wage inequality
    a study of Indian manufacturing
    Author: Sasidharan, Subash; Shandre Mugan Thangavelu; Ramachandran, Renjith
    Published: 2024
    Publisher:  Asian Development Bank Institute, Tokyo, Japan

    Using plant-level data from the Annual Survey of Industries, this study presents an empirical analysis of the effects of global value chains (GVCs) on employment and wage premiums in the Indian manufacturing sector. We emphasize the GVC's impact on... more

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    Using plant-level data from the Annual Survey of Industries, this study presents an empirical analysis of the effects of global value chains (GVCs) on employment and wage premiums in the Indian manufacturing sector. We emphasize the GVC's impact on three labor market variables: (i) employment, (ii) the wage premium among skilled, unskilled, male, and female workers, and (iii) wage inequality based on skill and gender. The analysis in the paper consists of four sub-categories of workers: skilled, unskilled, male, and female workers. We find that participation in GVCs is positively associated with employment and wages. We also find that these effects are more pronounced for skilled workers and that GVC participation significantly increases wage gaps between skilled and unskilled workers. There are several policy implications from the study: (i) the skills of workers should be improved through training and re-tooling, (ii) a strong monitoring framework on the dynamics of the labor market should be developed in terms of unbundling the effects of the GVC, and (iii) strong labor market institutions need to be developed to create more forward-looking policies that will increase the "future skills" of domestic workers.

     
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    Other identifier:
    hdl: 10419/305425
    Series: ADBI working paper series ; no. 1469 (July 2024)
    Subjects: GVC; employment; wage inequality; manufacturing; India
    Scope: 1 Online-Ressource (circa 28 Seiten)
  11. Frictional wage dispersion in search models
    : a quantitative assessment
    Published: 2006

    "Standard search and matching models of equilibrium unemployment, once properly calibrated, can generate only a small amount of frictional wage dispersion, i.e., wage differentials among exante similar workers induced purely by search frictions. We... more

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    "Standard search and matching models of equilibrium unemployment, once properly calibrated, can generate only a small amount of frictional wage dispersion, i.e., wage differentials among exante similar workers induced purely by search frictions. We derive this result for a specific measure of wage dispersion - the ratio between the average wage and the lowest (reservation) wage paid. We show that in a large class of search and matching models this statistic ("the mean-min ratio") can be obtained in closed form as a function of observable variables (i.e., interest rate, value of leisure, and statistics of labor market turnover). Looking at various independent data sources suggests that, empirically, residual wage dispersion (i.e., inequality among observationally similar workers) exceeds the model's prediction by a factor of 20. We discuss three extensions of the model (risk aversion, volatile wages during employment, and on-the-job search) and find that, in their simplest version, they can improve its performance, but only modestly. We conclude that either frictions account for a tiny fraction of residual wage dispersion, or the standard model needs to be augmented to confront the data."--Federal Reserve Bank of Richmond web site

     
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    Language: English
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    Series: Federal Reserve Bank of Richmond working paper ; 06.07
    Subjects: Suchtheorie; Arbeitslosigkeit; Lohnstruktur; Anspruchslohn
    Other subjects: Array
    Scope: Online-Ressource, 49 S., Text, graph. Darst.
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  12. Access to imported intermediates and intra-firm wage inequality
    Author: Ge, Ying; Fang, Tony; Jiang, Yeheng
    Published: March 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We use Chinese firm-level data from the World Bank Investment Climate Survey to examine the link between importing intermediates and intra-firm wage inequality. Our results show that intermediate input importers not only have a significant wage... more

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    We use Chinese firm-level data from the World Bank Investment Climate Survey to examine the link between importing intermediates and intra-firm wage inequality. Our results show that intermediate input importers not only have a significant wage premium but also have a greater intra-firm wage dispersion than non-importing firms. This pattern is robust when we control for productivity and use trade costs as the instruments. We further investigate the mechanism of how importing intermediates might contribute to both inter-firm and intra-firm wage inequality. Our evidence is consistent with three important channels. First, imported intermediate inputs complement skilled labour. Second, intermediates importers are more likely to use performance pay. Third, imported inputs complement innovation and employee training.

     
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    Other identifier:
    hdl: 10419/196744
    Series: Discussion paper series / IZA ; no. 12246
    Subjects: global production sharing; wage inequality; world bank investment climate survey
    Scope: 1 Online-Ressource (circa 44 Seiten)
  13. Firms and wage inequality in Central and Eastern Europe
    Author: Magda, Iga; Gromadzki, Jan; Moriconi, Simone
    Published: March 2019
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Recent studies show that firms are playing an increasingly important role in shaping wage inequality in advanced economies. We contribute to this literature by analysing wage inequality patterns and their firm dimension in Central and Eastern... more

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    Recent studies show that firms are playing an increasingly important role in shaping wage inequality in advanced economies. We contribute to this literature by analysing wage inequality patterns and their firm dimension in Central and Eastern European countries. We use large, linked employer-employee datasets with data from the 2002-2014 period. We find that unlike in many other advanced economies, wage inequality levels have decreased in CEE countries, and particularly in those countries that previously had the highest wage inequality levels. The relative size of the between-firm component varied substantially across countries, and was largest in countries with the highest wage inequality levels. We further estimate the recentered influence function (RIF) regression and the Blinder-Oaxaca decomposition in order to investigate the micro-level determinants of wage inequality. Our findings indicate that the changes in wage inequality levels were mainly attributable to returns to workplace characteristics.

     
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    Language: English
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    Other identifier:
    hdl: 10419/196712
    Series: Discussion paper series / IZA ; no. 12214
    Subjects: wages; wage inequality; RIF regression; linked employer-employee data
    Scope: 1 Online-Ressource (circa 48 Seiten)
  14. Ciclo y composición del cambio en los salarios: una aproximación a la estructura salarial de Colombia
    = Wage change cycle and composition: an approximation to the wage structure of Colombia
    Author: Lasso-Valderrama, Francisco; Rodríguez-Quintero, Laura
    Published: [2018]
    Publisher:  Banco de la Republica Colombia, Bogotá, Colombia

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    Language: Spanish
    Media type: Book
    Format: Online
    Series: Borradores de economía ; núm. 1057 (2018)
    Subjects: Wages; wages cycle; employment composition; wage inequality; Colombia; RIF regression
    Scope: 1 Online-Ressource (circa 52 Seiten), Illustrationen
  15. Short and long-run labor market effects of developing country exports
    evidence from Bangladesh
    Author: Robertson, Raymond; Kokas, Deeksha; Cardozo, Diego; López Acevedo, Gladys
    Published: March 2020
    Publisher:  World Bank Group, Poverty and Equity Global Practice, [Washington, DC, USA]

    This paper studies how a positive export shock - the sharp increase in garment-sector exports that began at the end of the Multifibre Arrangement (MFA) - spread through Bangladesh's labor markets. Although the end of the MFA was arguably exogenous to... more

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    This paper studies how a positive export shock - the sharp increase in garment-sector exports that began at the end of the Multifibre Arrangement (MFA) - spread through Bangladesh's labor markets. Although the end of the MFA was arguably exogenous to Bangladesh, the authors instrument export demand with OECD imports to ensure identification. The paper compares estimates of the local labor market effects (wages and informality) and estimates from wage equations that reflect the predictions from long-run, general-equilibrium neoclassical trade theory. As in other studies, this paper finds that the export shock was localized both in terms of sector and geography. Wages increased and informality decreased in sub-districts more exposed to the export shock. Unlike in other studies, these local labor market effects dissipate quickly. Furthermore, Bangladesh's export shock was sector specific, limited predominantly to the female-intensive garment and textile sector. The paper shows that, following the increase in exports of the female-intensive good, the male-female wage gap closes considerably throughout the country - not just in the apparel sector. In relatively small Bangladesh, the national labor market seems to be more integrated compared to larger countries studied, possibly suggesting that labor adjustment costs are lower in smaller countries

     
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    Series: Policy research working paper ; 9176
    World Bank E-Library Archive
    Subjects: Local labor markets; Bangladesh; apparel; exports; wage inequality; Stolper-Samuelson
    Scope: 1 Online-Ressource (circa 42 Seiten), Illustrationen
  16. Employment and wage effects of extending collective bargaining agreements
    sectoral collective contracts reduce inequality but may lead to job losses among workers with earnings close to the wage floors
    Author: Villanueva, Ernesto; Adamopoulou, Effrosyni
    Published: April 2022
    Publisher:  Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), Bonn

    In many countries, the wage floors and working conditions set in collective contracts negotiated by a subset of employers and unions are subsequently extended to all employees in an industry. Those extensions ensure common working conditions within... more

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    In many countries, the wage floors and working conditions set in collective contracts negotiated by a subset of employers and unions are subsequently extended to all employees in an industry. Those extensions ensure common working conditions within the industry, mitigate wage inequality, and reduce gender wage gaps. However, little is known about the so-called bite of collective contracts and whether they limit wage adjustments for all workers. Evidence suggests that collective contract benefits come at the cost of reduced employment levels, though typically only for workers earning close to the wage floors.

     
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    Series: IZA world of labor ; 2022, 136v2
    Subjects: bite of collective contracts; wage inequality; employment losses
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    Notes:

    Previous version March 2015
  17. Trade, labor reallocation across firms and wage inequality
    Author: Somale, Mariano
    Published: [2022]
    Publisher:  Board of Governors of the Federal Reserve System, [Washington, DC]

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    Series: International finance discussion papers ; number 1348 (June 2022)
    Subjects: Trade; firms; workers; supermodularity; wage inequality
    Scope: 1 Online-Ressource (circa 72 Seiten), Illustrationen
  18. Monopolistic competition, optimum product diversity, and international trade
    the role of factor endowment and factor intensities
    Author: Marjit, Sugata; Mandal, Biswajit
    Published: August 2021
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by Dixit and Stiglitz (1977) with applications in international trade by Krugman (1979,1980), by modeling fixed and variable costs of... more

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    In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by Dixit and Stiglitz (1977) with applications in international trade by Krugman (1979,1980), by modeling fixed and variable costs of production in terms of underlying use of skilled and unskilled labor in a single good model. This is different from earlier work on multi sector variant of Krugman cum Heckscher-Ohlin-Samuelson model such as Helpman (1981) and others. In our structure factor endowment and factor intensities determine both number of varieties and output per variety in a closed economy mimicking the features of Heckscher-Ohlin-Samuelson model. Differences in factor endowments across countries determine the pattern of trade between varieties and output per variety, which is indeterminate in a standard single good Dixit-Stiglitz-Krugman model. Later we reflect on wage inequality and unemployment providing some interesting results.

     
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    Series: CESifo working paper ; no. 9256 (2021)
    Subjects: monopolistic competition; trade; wage inequality; unemployment
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  19. Dinâmica da desigualdade salarial no Brasil e o papel de determinantes para além da qualificação dos trabalhadores
    Author: Procópio, Igor Vieira; Freguglia, Ricardo da Silva; Corseuil, Carlos Henrique; Guedes, Fillipe
    Published: fevereiro de 2022
    Publisher:  Instituto de Pesquisa Econômica Aplicada, Brasília

    The aim of this paper is to evaluate the evolution of wage inequality components in Brazil, specifically the evolution of the return to unobserved skills, in the period of 2003 to 2013. We use a method similar to that proposed by Cortes e... more

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    The aim of this paper is to evaluate the evolution of wage inequality components in Brazil, specifically the evolution of the return to unobserved skills, in the period of 2003 to 2013. We use a method similar to that proposed by Cortes e Hidalgo-Pérez (2015), based on a hypothesis of invariance of the dispersion of unobserved skills for a group of workers who remain employed between two consecutive years. We incorporated two rules into this method. First, we allowed the evolution of wage inequality to be affected by unobservable characteristics of firms. Second, it considers different sets of workers for whom the hypothesis of invariance of the dispersion of skills not observed between two consecutive years would apply. Our results obtained from Rais-Identified data show that the first extension affects the results, which are robust to the alternatives considered for the second extension of the method. The results of our preferred specification point to a growth in the return (price) to unobserved skills, much more intense than what occurs without considering the influence of unobservable characteristics of firms on workers’ wages.

     
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    Language: Portuguese
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    Series: Texto para discussão / Ipea ; 2733
    Subjects: wage inequality; unobserved skills; return to skills
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  20. Immunity-driven comparative advantage and its palliative effect on social health and inequality
    a theoretical perspective
    Author: Marjit, Sugata; Das, Gouranga Gopal
    Published: February 2022
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    We propose a model of "trade" between high income and low-income groups where the rich being scared of the spread of infection hires the poor to engage them in exposure-intensive outdoor activities as workers in the household industry. People who... more

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    We propose a model of "trade" between high income and low-income groups where the rich being scared of the spread of infection hires the poor to engage them in exposure-intensive outdoor activities as workers in the household industry. People who endure hardships and sustain exposure to unhygienic conditions may develop stronger immunity to fight the ongoing pandemic than members of the privileged class. The low-income group has greater endowment of immunity to income and for the rich it is lower. If such exchange takes place, essentially less immune people are withdrawn from exposure intensive activities and are being substituted by more immune workers. Thus, the spread and fatality will reduce with such a trade. The greater is the inequality, the more would be demand for labor for such work resulting in greater volume of such trade between low income and high-income workers. Thus, spread of the disease will be lower for countries where inequality is high. Later under a general equilibrium setting, we show that, ceteris paribus, a pandemic with a significant threat of infection and fatality would mean greater demand for poor workers; their income would rise and inequality would decline. If the pandemic increases demand for the top skilled, such as the case with virtual activities and derived demand for low skilled, relative wage for the top and bottom would increase.

     
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    hdl: 10419/252086
    Series: CESifo working paper ; no. 9569 (2022)
    Subjects: Covid; exposure-intensity; gig economy; wage inequality; herd-immunity; comparative advantage; welfare; general equilibrium
    Scope: 1 Online-Ressource (circa 23 Seiten), Illustrationen
  21. The impact of global value chain integration on wages
    evidence from matched worker-industry data in Thailand
    Author: Sasiwimon Warunsiri Paweenawat
    Published: 2019
    Publisher:  Economic Research Institute for ASEAN and East Asia, [Jakarta]

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    Series: ERIA discussion paper series ; ERIA-DP-2019-05 = no. 291
    Subjects: Global value chains; foreign value added; wages; skill premium; wage inequality; trade liberalisation; labour market; Thailand
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  22. Does change in intellectual property rights induce demand for skilled workers?
    evidence from India
    Author: Chakraborty, Pavel; Gupta, Prachi
    Published: November 2020
    Publisher:  Economic Research Institute for ASEAN and East Asia, [Jakarta]

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    Series: ERIA discussion paper series ; ERIA-DP-2020-20 = no. 347
    Subjects: intellectual property regimes; wage inequality; highly patentable and less patentable industries; skilled workers
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  23. The distribution of the gender wage gap
    an equilibrium model
    Author: Bhalotra, Sonia; Fernández, Manuel; Wang, Fan
    Published: [2022]
    Publisher:  University of Warwick, Department of Economics, Coventry, United Kingdom

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    Series: Warwick economics research papers ; no: 1404 (April 2022)
    Subjects: Female labor force participation; gender wage gap; technological change; supply-demand framework; task-based approach; wage distribution; wage inequality
    Scope: 1 Online-Ressource (circa 111 Seiten), Illustrationen
  24. Computers as stepping stones?
    technological change and equality of labor market opportunities
    Author: Arntz, Melanie; Lipowski, Cäcilia; Neidhöfer, Guido; Zierahn-Weilage, Ulrich
    Published: [2022]
    Publisher:  ZEW - Leibniz Centre for European Economic Research, Mannheim, Germany

    This paper analyzes whether technological change improves equality of labor market opportunities by decreasing returns to parental background. We find that in Germany during the 1990s, computerization improved the access to technologyadopting... more

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    This paper analyzes whether technological change improves equality of labor market opportunities by decreasing returns to parental background. We find that in Germany during the 1990s, computerization improved the access to technologyadopting occupations for workers with low-educated parents, and reduced their wage penalty within these occupations. We also show that this significantly contributed to a decline in the overall wage penalty experienced by workers from disadvantaged parental backgrounds over this time period. Competing mechanisms, such as skill-specific labor supply shocks and skill- upgrading, do not explain these findings.

     
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    Series: Discussion paper / ZEW ; no. 22, 014 (05/2022)
    Subjects: Skill-biased technical change; wage inequality; equality of opportunity; intergenerational persistence; parental background; class ceiling
    Scope: 1 Online-Ressource (73 Seiten), Illustrationen
  25. The distribution of the gender wage gap
    an equilibrium model
    Author: Bhalotra, Sonia; Fernández, Manuel; Wang, Fan
    Published: April 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We develop an equilibrium model of the labor market to investigate the joint evolution of gender gaps in labor force participation and wages. We do this overall and by task-based occupation and skill, which allows us to study distributional effects.... more

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    We develop an equilibrium model of the labor market to investigate the joint evolution of gender gaps in labor force participation and wages. We do this overall and by task-based occupation and skill, which allows us to study distributional effects. We structurally estimate the model using data from Mexico over a period during which women's participation increased by fifty percent. We provide new evidence that male and female labor are closer substitutes in high-paying analytical task-intensive occupations than in lower-paying manual and routine task-intensive occupations. We find that demand trends favored women, especially college-educated women. Consistent with these results, we see a widening of the gender wage gap at the lower end of the distribution, alongside a narrowing at the top. On the supply side, we find that increased appliance availability was the key driver of increases in the participation of unskilled women, and fertility decline a key driver for skilled women. The growth of appliances acted to widen the gender wage gap and the decline of fertility to narrow it. We also trace equilibrium impacts of growth in college attainment, which was more rapid among women, and of emigration, which was dominated by unskilled men. Our counterfactual estimates demonstrate that ignoring the countervailing effects of equilibrium wage adjustments on labor supplies, as is commonly done in the literature, can be misleading.

     
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    Series: Discussion paper series / IZA ; no. 15258
    Subjects: female labor force participation; gender wage gap; technological change; supply-demand framework; task-based approach; wage distribution; wage inequality
    Scope: 1 Online-Ressource (circa 112 Seiten), Illustrationen