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  1. 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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    Language: English
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    hdl: 10419/260680
    Series: IZA world of labor ; 2022, 136v2
    Subjects: bite of collective contracts; wage inequality; employment losses
    Scope: 1 Online-Ressource (circa 12 Seiten), Illustrationen
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    Previous version March 2015
  2. 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
  3. 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
    Media type: Book
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    hdl: 10419/261048
    Series: Texto para discussão / Ipea ; 2733
    Subjects: wage inequality; unobserved skills; return to skills
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  4. 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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    Language: English
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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
  5. 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
  6. 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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    hdl: 10419/259801
    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
  7. 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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    hdl: 10419/263474
    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
  8. Did a successful fight against the COVID-19 pandemic come at a cost?
    impacts of the pandemic on employment outcomes in Vietnam
    Author: Dang, Hai-Anh; Cuong Viet Nguyen; Carletto, Calogero
    Published: 2022 March
    Publisher:  ECINEQ, Society for the Study of Economic Inequality, [Verona]

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    Series: Working paper series / ECINEQ, Society for the Study of Economic Inequality ; 607 (2022)
    Subjects: COVID-19; employment; wage inequality; differences-in-differences; RDD; Vietnam
    Scope: 1 Online-Ressource (circa 74 Seiten), Illustrationen
  9. Identifying rent-sharing using firms' energy input mix
    Author: Mertens, Matthias; Müller, Steffen; Neuschäffer, Georg
    Published: [30. August 2022]
    Publisher:  Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, Halle (Saale), Germany

    We present causal evidence on the rent-sharing elasticity of German manufacturing firms. We develop a new firm-level Bartik instrument for firm rents that combines the firms‘ predetermined energy input mix with national energy carrier price changes.... more

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    We present causal evidence on the rent-sharing elasticity of German manufacturing firms. We develop a new firm-level Bartik instrument for firm rents that combines the firms‘ predetermined energy input mix with national energy carrier price changes. Reduced-form evidence shows that higher energy prices depress wages. Instrumental variable estimation yields a rent-sharing elasticity of approximately 0.20. Rent-sharing induced by energy price variation is asymmetric and driven by energy price increases, implying that workers do not benefit from energy price reductions but are harmed by price increases. The rent-sharing elasticity is substantially larger in small (0.26) than in large (0.17) firms.

     
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    hdl: 10419/264393
    Series: IWH discussion papers ; 2022, no. 19 (August 2022)
    Subjects: Bartik instrument; energy prices; rent-sharing; wage inequality
    Scope: 1 Online-Ressource (III, 52 Seiten, 3 MB), Diagramme
  10. Computers as stepping stones?
    technological change and equality of labor market opportunities
    Author: Arntz, Melanie; Lipowski, Cäcilia; Neidhöfer, Guido; Zierahn-Weilage, Ulrich
    Published: 2022 August
    Publisher:  ECINEQ, Society for the Study of Economic Inequality, [Verona]

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    Series: Working paper series / ECINEQ, Society for the Study of Economic Inequality ; 617 (2022)
    Subjects: Skill-biased technical change; wage inequality; equality of opportunity; intergenerational persistence; parental background; class ceiling
    Scope: 1 Online-Ressource (circa 60 Seiten), Illustrationen
  11. It's all about the meaning
    work meaning, job flexibility, and the gender wage gap
    Author: De Schouwer, Thimo; Kesternich, Iris
    Published: [2022]
    Publisher:  KU Leuven, Department of Economics, Leuven

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    Series: Discussion paper series / [KU Leuven, Department of Economics] ; DPS22, 04 (July 2022)
    Subjects: workplace flexibility; mission; compensating differentials; gender; wage inequality; hypothetical choice experiment
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  12. The multiple dimensions of selection into employment
    Author: Elass, Kenza
    Published: [2022]
    Publisher:  [Aix-Marseille School of Economics], [Aix-en-Provence

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    Series: Working papers / AMSE, Aix-Marseille School of Economics ; WP 2022, nr 19
    Subjects: Gender wage gap; sample selection; quantile selection model; wage inequality; quantiles; selection; glass ceilings; sticky floors
    Scope: 1 Online-Ressource (circa 52 Seiten), Illustrationen
  13. Wage inequality and the rise in labor force exit
    the case of US prime-age men
    Author: Wu, Pinghui
    Published: [2022]
    Publisher:  [Federal Reserve Bank of Boston], [Boston]

    This article offers the first empirical evidence that labor force exit rates rise when workers' relative earnings fall. The model takes into account that a job not only provides economic security but also affirms a worker's social status, which is... more

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    This article offers the first empirical evidence that labor force exit rates rise when workers' relative earnings fall. The model takes into account that a job not only provides economic security but also affirms a worker's social status, which is tied to their relative position in the labor market. Based on the results, the decline in relative earnings for non-college prime-age men over the last four decades is estimated to have raised their labor force exit propensity by 0.49 percentage point, accounting for 44 percent of the total growth in their labor force exit rate during this period.

     
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    hdl: 10419/273037
    Edition: This version: September 2022
    Series: Working papers / Federal Reserve Bank of Boston ; no. 22, 16
    Subjects: labor force exit rates; prime-age male labor force participation; relative earnings; wage inequality
    Scope: 1 Online-Ressource (circa 45 Seiten), Illustrationen
  14. When immigrants meet exporters
    a reassessment of the immigrant wage gap
    Author: Marchal, Léa; Ourens, Guzmán; Sabbadini, Giulia
    Published: November 2022
    Publisher:  CESifo, Munich, Germany

    We use French employer-employee data to reassess the wage gap between native and foreign workers. We find that the wage gap varies with the export intensity of the firm and the occupation of the worker. A model with heterogeneous firms and workers... more

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    We use French employer-employee data to reassess the wage gap between native and foreign workers. We find that the wage gap varies with the export intensity of the firm and the occupation of the worker. A model with heterogeneous firms and workers shows that our findings are consistent with white-collar immigrants capturing an informational rent. The evidence supports this mechanism. First, we show that the wage gap is positively correlated with the complexity of the firm export activity. Second, we show that wages react to changes in export intensity when the export destination coincides with the origin of foreign workers.

     
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    hdl: 10419/267324
    Series: CESifo working papers ; 10092 (2022)
    Subjects: export; firm; immigrants; wage inequality
    Scope: 1 Online-Ressource (circa 69 Seiten), Illustrationen
  15. Who's got the power?
    wage determination and its resilience in the Great Recession
    Author: Vilares, Hugo; Reis, Hugo
    Published: [2022]
    Publisher:  Centre for Economic Performance, London School of Economics and Political Science, London

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    Series: Discussion paper / Centre for Economic Performance ; no. 1885 (November 2022)
    Subjects: search and matching; wage determination; collective bargaining and trade unions; rent sharing; bargaining power; assortative matching; wage inequality
    Scope: 1 Online-Ressource (circa 77 Seiten), Illustrationen
  16. Footloose capital, educational choice, and wage inequality
    Author: Kon, Yoshifumi
    Published: September 2022
    Publisher:  [CIRJE, Faculty of Economics, University of Tokyo], [Tokyo]

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    Series: Array ; CIRJE-F-1200
    Subjects: wage inequality; footloose capital model; home market effect; educational investment
    Scope: 1 Online-Ressource (circa 17 Seiten)
  17. Decline in values of degrees and recent evolution of wage inequality
    evidence from Chile
    Author: Murakami, Yoshimichi; Nomura, Tomokazu
    Published: [2022]
    Publisher:  Research Institute for Economics and Business Administration, Kobe University, Kobe, Japan

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    Edition: Revised March 29, 2022
    Series: Discussion paper series / Research Institute for Economics and Business Administration, Kobe University ; DP 2021, 09
    Subjects: higher education; returns to degree; wage inequality
    Scope: 59 Seiten, Illustrationen
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  18. Selection and the distribution of female hourly wages in the U.S.
    Author: Fernández-Val, Iván; Vuuren, Aico van; Vella, Francis; Peracchi, Franco
    Published: January 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We analyze the role of selection bias in generating the changes in the observed distribution of female hourly wages in the United States using CPS data for the years 1975 to 2020. We account for the selection bias from the employment decision by... more

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    We analyze the role of selection bias in generating the changes in the observed distribution of female hourly wages in the United States using CPS data for the years 1975 to 2020. We account for the selection bias from the employment decision by modeling the distribution of the number of working hours and estimating a nonseparable model of wages. We decompose changes in the wage distribution into composition, structural and selection effects. Composition effects have increased wages at all quantiles while the impact of the structural effects varies by time period and quantile. Changes in the role of selection only appear at the lower quantiles of the wage distribution. The evidence suggests that there is positive selection in the 1970s which diminishes until the later 1990s. This reduces wages at lower quantiles and increases wage inequality. Post 2000 there appears to be an increase in positive sorting which reduces the selection effects on wage inequality.

     
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    hdl: 10419/250689
    Series: Discussion paper series / IZA ; no. 15028
    Subjects: wage inequality; wage decompositions; non-separability; selection bias
    Scope: 1 Online-Ressource (circa 54 Seiten), Illustrationen
  19. Inequality and occupational change in times of Revolution
    the Tunisian perspective
    Author: Marouani, Mohamed Ali; Phuong Minh Le
    Published: 2022
    Publisher:  Global Labor Organization (GLO), Essen

    The public sector plays a large role in many developing economies, but its effect on earnings inequality dynamics has not been widely studied. In this paper, we investigate the earnings inequality trends and their determinants in the decades before... more

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    The public sector plays a large role in many developing economies, but its effect on earnings inequality dynamics has not been widely studied. In this paper, we investigate the earnings inequality trends and their determinants in the decades before and after the Tunisian Revolution, focusing on the impact of public wage and employment policy changes. A recentered-influence function (RIF) decomposition is performed to decompose the change in earnings into wage structure and composition effects and to assess the contribution of various determinants of inequality change. We find that earnings inequality decreased significantly during the period of investigation in Tunisia, mainly due to the decrease in the public-private wage gap and in sector wage gaps on the demand side, and the decreasing education premia on the supply side. The increase in marginal returns to average routine-task intensity jobs, the falling return to experience, and the decreasing regional wage gap also contributed to declining earnings inequality, but to a lesser extent.

     
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    hdl: 10419/250890
    Series: GLO discussion paper ; no. 1058
    Subjects: wage inequality; Revolution; occupational change; education premium; public wage policy
    Scope: 1 Online-Ressource (circa 43 Seiten), Illustrationen
  20. Brain over brawn
    job polarization, structural change, and skill prices
    Author: Sasiwimon Warunsiri Paweenawat; Liao, Lusi
    Published: [2022]
    Publisher:  [Puey Ungphakorn Institute for Economic Research], [Bangkok]

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    Series: Discussion paper / Puey Ungphakorn Institute for Economic Research ; no. 189 (October 2022)
    Subjects: polarization; structural change; RIF-regressions; decomposition; wage inequality; job tasks
    Scope: 1 Online-Ressource (circa 41 Seiten), Illustrationen
  21. Occupational tasks and wage inequality in Germany
    a decomposition analysis
    Author: Koomen, Miriam; Backes-Gellner, Uschi
    Published: November 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We study the role of occupational tasks as drivers of West German wage inequality. We match administrative wage data with longitudinal task data, which allows us to account for within-occupation changes in task content over time. We run RIF... more

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    We study the role of occupational tasks as drivers of West German wage inequality. We match administrative wage data with longitudinal task data, which allows us to account for within-occupation changes in task content over time. We run RIF regression-based decompositions to quantify the contribution of changes in the returns to tasks to overall changes in the wage distribution from 1978 to 2006. We find that changes in the returns to tasks explain up to half of the increase in wage inequality since the 1990s, both at the top and the bottom of the wage distribution. Specifically, abstract tasks drive the upper wage gap, while interactive and routine tasks drive the lower wage gap. Importantly, we find low-wage occupations to have the highest routine task intensity. The association between occupational tasks and West German wage inequality is thus both stronger and different than prior research has found.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/267439
    Series: Discussion paper series / IZA ; no. 15702
    Subjects: wage inequality; skills; tasks; routine-biased technical change; decomposition analysis; RIF regression
    Scope: 1 Online-Ressource (circa 68 Seiten), Illustrationen
  22. High-pressure, high-paying jobs?
    Author: Nagler, Markus; Rincke, Johannes; Winkler, Erwin
    Published: November 2022
    Publisher:  CESifo, Munich, Germany

    Work-related stress has reportedly increased over time. Using worker-level survey data, we build a measure of work pressure strongly associated with adverse health outcomes. In line with theories of compensating differentials, work pressure comes... more

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    Work-related stress has reportedly increased over time. Using worker-level survey data, we build a measure of work pressure strongly associated with adverse health outcomes. In line with theories of compensating differentials, work pressure comes with a sizable earnings premium, even within narrowly defined occupations. As expected, we find no premium among civil servants who face strong labor market frictions. In complementary stated-choice experiments, we uncover a substantial willingness-to-pay to avoid work pressure. Our evidence is consistent with workers sorting into high- and low-pressure jobs. Differences in the prevalence and valuation of work pressure explain a substantial share of wage inequality.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/267334
    Series: CESifo working papers ; 10102 (2022)
    Subjects: work pressure; compensating differentials; working conditions; wage inequality; health
    Scope: 1 Online-Ressource (circa 62 Seiten), Illustrationen
  23. When transaction-level wage transparency can increase consumer preference
    Author: Stich, Lucas; Ungemach, Christoph; Fuchs, Christoph; Spann, Martin
    Published: [2022]
    Publisher:  Collaborative Research Center Transregio 190, [München]

    Firms are usually reluctant to disclose information about the production costs of their goods and services; however, some firms have recently started to disclose cost information to consumers. This research examines the consequences of disclosing... more

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    Firms are usually reluctant to disclose information about the production costs of their goods and services; however, some firms have recently started to disclose cost information to consumers. This research examines the consequences of disclosing transaction-level wage information on consumer preferences. Six experiments, both in field and lab settings across multiple service domains, document that disclosing a service worker’s compensation can increase consumer preference for that firm’s service if the compensation is sufficiently high (i.e., perceived as fair by consumers). This greater preference for services provided in a fair-wage setting is driven by consumers’ feelings of anticipated guilt and higher expectations concerning quality. Available social norms regarding fair compensation and the nature of the service worker (human vs. non- human) are both identified as important boundary conditions of the proposed process. This research offers a first step toward understanding the psychological and behavioral consequences of disclosing transaction-level wage information to consumers, thereby enabling managers to better identify when they should disclose wage information as part of their marketing strategy. This research also informs policy makers on how to encourage social preferences and consumer choices in order to promote fair outcomes for consumers, firms, and workers.

     
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
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    hdl: 10419/282038
    Series: Discussion paper / Rationality & Competition, CRC TRR 190 ; no. 346 (November 10, 2022)
    Subjects: transaction-level wage transparency; social preferences; fairness; pricing; wage inequality
    Scope: 1 Online-Ressource (circa 63 Seiten), Illustrationen