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  1. Distributional effects of monetary policy shocks on wage and hours
    evidence from the Czech labor market
    Published: [2023]
    Publisher:  $nVŠE, Faculty of International Relations, [Praha]

    We investigate the heterogeneity in the effects of monetary policy shocks on the distribution of wages and hours worked, using unique contract-level data from the Czech labor market and identifying monetary policy shocks using a narrative approach... more

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    We investigate the heterogeneity in the effects of monetary policy shocks on the distribution of wages and hours worked, using unique contract-level data from the Czech labor market and identifying monetary policy shocks using a narrative approach based on market suprises in interest rate futures. The results suggest that low-wage groups are hit more profoundly by monetary policy shocks than high-wage groups, and the effect of restrictive shocks is stronger in the manufacturing sector than in any other. Exploring other dimensions of the data offers insights into the heterogeneity of the impact of monetary policy on different demographic groups. We show that low-educated and also young workers are more affected by restrictive monetary policy shocks due to their higher shares in low-wage groups.

     

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    hdl: 10419/297888
    Series: Working paper series / [VŠE, Faculty of International Relations] ; 2023, 01
    Subjects: monetary policy; heterogeneity; wage inequality; shock identification
    Scope: 1 Online-Ressource (circa 29 Seiten), Illustrationen
  2. Robot adoption, worker-firm sorting and wage inequality
    evidence from administrative panel data
    Published: [2023]
    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. 1902 (February 2023)
    Subjects: robot adoption; worker-firm sorting; wage inequality; technological change; finite mixture models
    Scope: 1 Online-Ressource (circa 65 Seiten), Illustrationen
  3. The long-run effects of temporarily closing schools
    evidence from Virginia, 1870s-1910s
    Published: January 2023
    Publisher:  Queen's University Centre for Economic History, Belfast

    New hand-collected school administrative data from 1870s Virginia, alongside linked individual US Censusrecords, reveals that temporary school closures had lasting effects on literacy and income in adulthood. Those affected by the closures had lower... more

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    New hand-collected school administrative data from 1870s Virginia, alongside linked individual US Censusrecords, reveals that temporary school closures had lasting effects on literacy and income in adulthood. Those affected by the closures had lower intergenerational economic mobility, particularly those from low-income backgrounds. The age at which the closures occurred also played a role with younger cohorts more affected by early developmental disruptions and older cohorts more affected by prolonged closures.

     

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    hdl: 10419/268423
    Series: QUCEH working paper series ; 23, 02
    Subjects: returns to education; school closures; literacy; economic mobility; wage inequality
    Scope: 1 Online-Ressource (circa 61 Seiten), Illustrationen
  4. The role of public employment and wage policy in the dynamic of earnings inequality
    the Tunisian perspective
    Published: [2023]
    Publisher:  Economic Research Forum (ERF), Dokki, Giza, Egypt

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    Series: ERF working papers series ; no. 1683 (December 2023)
    Subjects: wage inequality; Revolution; occupational change; public wage policy
    Scope: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  5. Fiscal policy and dimensions of inequality in South Africa
    a time-varying coefficient approach
    Published: December 2023
    Publisher:  Department of Economics, University of Stellenbosch, Stellenbosch

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    Series: Stellenbosch economic working papers ; WP 2023, 05
    Subjects: income inequality; wage inequality; wealth inequality; fiscal
    Scope: 1 Online-Ressource (circa 22 Seiten), Illustrationen
  6. Labor market competition and inequality
    Published: December 2023
    Publisher:  CESifo, Munich, Germany

    Does competition in the labor market affect wage inequality? Standard textbook monopsony models predict that lower employer labor market power reduces wage dispersion. We test this hypothesis using Social Security data from Lithuania. We first fit a... more

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    Does competition in the labor market affect wage inequality? Standard textbook monopsony models predict that lower employer labor market power reduces wage dispersion. We test this hypothesis using Social Security data from Lithuania. We first fit a two-way fixed effects model to quantify the contribution of worker and firm heterogeneity to wage dispersion and document that the compression of dispersion in firm fixed effects has been the main source of the decline in inequality over the past 20 years. Using a theory-based relationship, we then leverage variation across sectors and over time to show that a 10 percentage point increase in labor market competition leads to a 0.7 percentage point reduction in the variance of firm-specific wage components. A counterfactual exercise using our preferred estimates suggests that the increase in labor market competition can explain at least 15 percent of the observed decline in overall wage inequality.

     

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    hdl: 10419/282517
    Series: CESifo working papers ; 10829 (2023)
    Subjects: wage inequality; firm heterogeneity; monopsony; labor supply elasticity
    Scope: 1 Online-Ressource (circa 52 Seiten), Illustrationen
  7. Automation and income inequality in Europe
    Published: 2023
    Publisher:  INEQ, Economics of Inequality Research Institute, WU Vienna, Wien

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    Series: INEQ working paper series ; #29
    Subjects: robots; automation; tasks; income inequality; wage inequality; microsimulation
    Scope: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  8. Distributional effects of monetary policy shocks on wage and hours worked
    evidence from the Czech labor market
    Published: 2023
    Publisher:  Czech National Bank, Economic Research Department, Praha

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    Series: Working paper series / Czech National Bank ; 2023, 4
    Subjects: Heterogeneity; monetary policy; shock identification; wage inequality
    Scope: 1 Online-Ressource (circa 24 Seiten9, Illustrationen
  9. The mismeasurement of work time
    implications for wage discrimination and inequality
    Published: December 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    A comparison of measures of work time in the CPS-ASEC data file (based on recall) with contemporaneous measures reveals many logical inconsistencies and probable errors. About 8 percent of ASEC respondents report weeks worked last year that... more

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    A comparison of measures of work time in the CPS-ASEC data file (based on recall) with contemporaneous measures reveals many logical inconsistencies and probable errors. About 8 percent of ASEC respondents report weeks worked last year that contradict their work histories in the Basic monthly interviews; the error rate is over 50 percent among workers who move in and out of the workforce across their monthly interviews. Over 20 percent give contradictory information about whether they usually work a full-time weekly schedule (35 or more hours per week). A small part of the inconsistency arises because an increasing fraction of observations in the ASEC (over 20 percent by 2018) consists of people whose record was fully imputed. The errors and imputations are not random: The levels and trends differ by gender and race, and they affect the calculation of wage differentials between 1978 to 2018. After adjusting for the measurement errors and excluding imputations, we find that gender wage gaps among all workers narrowed by 4 log points more than is commonly reported, and that residual wage inequality decreased by 6 log points more. The biases also exist in measures of wage gaps and residual inequality among full-time year-round workers. Using a more carefully defined sample of such workers shows that gender and racial wage differentials have narrowed slightly less than previously estimated using ASEC data, but much more than indicated by commonly used estimates from CPS Outgoing Rotation Groups.

     

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    hdl: 10419/282826
    Series: Discussion paper series / IZA ; no. 16699
    Subjects: Arbeitszeit; Statistischer Fehler; Wirkungsanalyse; Lohnstruktur; Schätzung; USA; work time; measurement; wage discrimination; wage inequality
    Scope: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  10. The role of global value chains for worker tasks and wage inequality
    Published: October 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    This paper studies the relationship between global value chain (GVC) participation, worker-level routine task intensity, and wage inequality within countries. Using unique survey data from 38 countries, we find that higher GVC participation is... more

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    This paper studies the relationship between global value chain (GVC) participation, worker-level routine task intensity, and wage inequality within countries. Using unique survey data from 38 countries, we find that higher GVC participation is associated with more routine-intensive work, especially among workers in offshorable occupations. This relationship is particularly strong in industry and in countries at lower development levels. As higher routine task intensity links with to wages, this indirectly widens within-country wage inequality. However, GVC participation directly contributes to reduced wage inequality, except in the richest countries. Overall, GVC participation is negatively associated with wage inequality in most low- and middle-income countries that receive offshored jobs, and positively in high-income countries that offshore jobs.

     

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    hdl: 10419/282637
    Series: Discussion paper series / IZA ; no. 16510
    Subjects: routine task intensity; global value chains; globalisation; cross-country division of work; wage inequality
    Scope: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  11. Spatial wage inequality in North America and Western Europe
    changes between and within local labour markets 1975-2019
    Published: [2023]
    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. 1941 (August 2023)
    Subjects: regional inequality; wage inequality; local labour markets
    Scope: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  12. Spatial wage inequality in North America and Western Europe
    changes between and within local labour markets 1975-2019
    Published: August 2023
    Publisher:  International Inequalities Institute, The London School of Economics and Political Science, London

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    Series: Working paper / LSE International Inequalities Institute ; 98
    Subjects: regional inequality; wage inequality; local labour markets
    Scope: 1 Online-Ressource (circa 46 Seiten), Illustrationen
  13. The gender pay gap
    micro sources and macro consequences
    Published: August 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Using linked employer-employee data from Brazil, we document a large gender pay gap due to women working at lower-paying employers with better nonpay attributes. To interpret these facts, we develop an equilibrium search model with endogenous firm... more

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    Using linked employer-employee data from Brazil, we document a large gender pay gap due to women working at lower-paying employers with better nonpay attributes. To interpret these facts, we develop an equilibrium search model with endogenous firm pay, amenities, and hiring. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for both men and women, that compensating differentials explain half of the gender pay gap, and that there are significant output and welfare gains from eliminating gender differences. However, equal-treatment policies fail to achieve those gains.

     

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    hdl: 10419/279107
    Series: Discussion paper series / IZA ; no. 16409
    Subjects: wage inequality; amenities; equilibrium search model; linked employer-employee data; compensating differentials; taste-based discrimination; monopsony power
    Scope: 1 Online-Ressource (circa 109 Seiten), Illustrationen
  14. Minimum wages and changing wage inequality in India
    Published: June 2023
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    Using nationally representative data on employment and earnings, this paper documents a fall in wage inequality in India over the last two decades. It then examines the role played by increasing minimum wages for the lowest skilled workers in India... more

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    Using nationally representative data on employment and earnings, this paper documents a fall in wage inequality in India over the last two decades. It then examines the role played by increasing minimum wages for the lowest skilled workers in India in contributing to the observed decline. Exploiting regional variation in changes in minimum wages over time in the country, we find that an increase in minimum wages by one per cent led to an increase in wages for workers in the lowest quintile by 0.17 per cent. This effect is smaller at upper wage quintiles and insignificant for the highest wage quintile. Counterfactual wage estimations show that the increases in minimum wages explain 26 per cent of the decline in wage inequality. These findings underscore the important role played by rising minimum wages in reducing wage disparities in India.

     

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    ISBN: 9789292673758
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    hdl: 10419/283763
    Series: WIDER working paper ; 2023, 67
    Subjects: minimum wages; wage inequality; India; employment
    Scope: 1 Online-Ressource (circa 51 Seiten), Illustrationen
  15. A theory of non-Coasean labor markets
    Published: May 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We develop a theory of labor markets in a monetary economy with four realistic features: search frictions, worker productivity shocks, wage rigidity, and two-sided lack of commitment. Due to the non-Coasean nature of labor contracts, inefficient job... more

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    We develop a theory of labor markets in a monetary economy with four realistic features: search frictions, worker productivity shocks, wage rigidity, and two-sided lack of commitment. Due to the non-Coasean nature of labor contracts, inefficient job separations occur in the form of endogenous quits and layoffs that are unilaterally initiated whenever a worker's wage-to-productivity ratio moves outside an inaction region. We derive sufficient statistics for the aggregate labor market response to a monetary shock based on the distribution of workers' wage-to-productivity ratios. These statistics crucially depend on the incidence of inefficient job separations, which we show how to identify using readily available microdata on wage changes and worker flows between jobs.

     

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    hdl: 10419/272748
    Series: Discussion paper series / IZA ; no. 16121
    Subjects: inflation; monetary policy; wage rigidity; wage inequality; unemployment; inefficient job separations; quits; layoffs; directed search; commitment; stopping times; continuous-time methods; variational inequalities
    Scope: 1 Online-Ressource (circa 128 Seiten), Illustrationen
  16. Wage inequality, firm characteristics, and firm wage premia in South Africa
    Published: October 2023
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    This paper investigates the role of firm characteristics in driving wage inequality and firm wage premia in the South African labour market. The Abowd, Kramarz, and Margolis (AKM) and Kline, Saggio, and Sølvsten (KSS) regression-based decomposition... more

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    This paper investigates the role of firm characteristics in driving wage inequality and firm wage premia in the South African labour market. The Abowd, Kramarz, and Margolis (AKM) and Kline, Saggio, and Sølvsten (KSS) regression-based decomposition methods are applied to matched employer-employee administrative tax data for the period 2011-19. Additionally, the Theil index is used as a comparative tool for estimating wage inequality, given that the variance of logarithms applied in the regression-based decomposition methods has been established as an imprecise measure of inequality. The results show significantly high dispersion in wages, as estimated by both the AKM and the KSS methods as well as the Theil index, reaffirming the extent of high inequality in the country. Worker and firm characteristics account for 35 per cent and 18 per cent of wage dispersion, respectively, with a positive worker-firm covariance accounting for 11 per cent. Firm size, industry, profits, geographical location, and whether firms are locally or foreign-owned are found to be important in driving firm wage premia.

     

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    ISBN: 9789292674397
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    hdl: 10419/283827
    Series: WIDER working paper ; 2023, 131
    Subjects: wage inequality; firm wage premia; South Africa
    Scope: 1 Online-Ressource (circa 30 Seiten), Illustrationen
  17. Minimum wages and changing wage inequality in India
    Published: November 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Using nationally representative data on employment and earnings, this paper documents a fall in wage inequality in India over the last two decades. It then examines the role played by increasing minimum wages for the lowest skilled workers in India... more

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    Using nationally representative data on employment and earnings, this paper documents a fall in wage inequality in India over the last two decades. It then examines the role played by increasing minimum wages for the lowest skilled workers in India in contributing to the observed decline. Exploiting regional variation in changes in minimum wages over time in the country, we find that an increase in minimum wages by one percent led to an increase in wages for workers in the lowest quintile by 0.17%. This effect is smaller at upper wage quintiles and insignicant for the highest wage quintile. Counterfactual wage estimations show that the increase in minimum wages explains 26% of the decline in wage inequality in India during 1999-2018. These findings underscore the important role played by rising minimum wages in reducing wage disparities in India.

     

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    hdl: 10419/282727
    Series: Discussion paper series / IZA ; no. 16600
    Subjects: minimum wages; wage inequality; India
    Scope: 1 Online-Ressource (circa 70 Seiten), Illustrationen
  18. Global divergence in the de-routinization of jobs
    Published: 2023
    Publisher:  Asian Development Bank, Metro Manila, Philippines

    This study introduces a methodology to estimate the economy-specific task content of occupations across economies at different income levels. Combining these with employment data in 87 economies, the results show that occupations in low- and... more

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    This study introduces a methodology to estimate the economy-specific task content of occupations across economies at different income levels. Combining these with employment data in 87 economies, the results show that occupations in low- and middle-income economies are more routine-intensive than in high-income economies, which is attributed to lower technology use in less-developed economies. Non-routine work continues to dominate in high-income economies while routine work remains in low-income and middle-income economies. These findings, using economy-specific estimates of occupational task content, contradict the assumption based on conventional measures that task content of occupations is converging globally. The finding of divergent trends in the relative routine intensity of work in developed and developing economies has important policy implications. Investment in skills, technology use, and participation in global value chains are key factors for work content and productivity to converge with those in high-income economies. The assumption that occupations are converging globally may also overestimate the role of routine-replacing technological change in explaining wage inequality in low- or middle-income economies.

     

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    hdl: 10419/298129
    Series: ADB economics working paper series ; no. 683 (May 2023)
    Subjects: occupational task content; routine-task intensity; skills; jobs divergence; wage inequality
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  19. Spatial wage inequality in North America and Western Europe
    changes between and within local labour markets 1975-2019

    The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between national and subnational economic... more

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    The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between national and subnational economic inequality. This paper presents the first systematic attempt to create internationally comparable evidence showing how different countries perform in terms of geographic wage inequalities. We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US since the 1970s, and assess their contribution to national inequality. By the end of the 2010s, spatial inequalities in LLMA mean wages are similar in Canada, France, Germany and the UK; the US exhibits the highest degree of spatial inequality. Over the study period, spatial inequalities have nearly doubled in all countries, except for France where spatial inequalities have fallen back to 1970s levels. Due to a concomitant increase in within-place inequality, the contribution of places in explaining national wage inequality has remained fairly constant over the 40-year study period, except in the UK where we document a significant increase. Whilst common global social, economic and technological shocks are important drivers of spatial inequality, this variation in levels and trends of spatial inequality opens the way to comparative research exploring the role of national institutions in mediating how global shocks translate into economic disparities between places.

     

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    Other identifier:
    hdl: 10419/274019
    Series: Kiel working paper ; no. 2253 (August 2023)
    Subjects: regional inequality; wage inequality; local labour markets
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  20. Where have all tech layoffs gone?
    a model of two worker types with outsourcing
    Published: October 2023
    Publisher:  CESifo, Munich, Germany

    The flourishing of IT-sector and IT-enabled services has led to emergence of different activities by leaps and bounds thanks to proliferation of Virtual plaform-based transactions, and E- commerce. However, massive layoffs started in 2022, as all... more

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    The flourishing of IT-sector and IT-enabled services has led to emergence of different activities by leaps and bounds thanks to proliferation of Virtual plaform-based transactions, and E- commerce. However, massive layoffs started in 2022, as all tech giants encountered revenue declines amidst supply chain issues, inflation, Ukraine war, leading to deflation and fears of recession squeezing consumer and business spending. This has happened across the globe. In the context of the countries supplying low-wage labor (skilled wage in Indian Silicon Valley at Bengaluru is lower than that in the Californian Silicon Valley), similar episodes unfolded but to a different extent. The evidence suggests that layoffs in developing economies like India is much less than that in the US with limited impact on Indian industry despite severe global downturn. Jobs and hiring will move out of the developed markets to these emerging markets with cost advantages owing to lower salaries, as with low demand, drive to cutdown costs will induce firms to outsource some operations outside while focusing on core functions provided the cost of outsourcing is not too high. In this paper, we build a model to show how contraction in demand for IT-enabled works will determine how much of works to be completed in the US (home) and the remainder to be sourced out to say, India (abroad). We identify the conditions under which switching from pure domestic production to outsourcing using hired foreign workers will happen. We show that in both cases of perfectly competitive homogeneous product as well as in case of differentiated goods oligopoly scenarios that the hiring ceases drastically in the home while the outsourced workers will not suffer to a large extent. Home bears the burden of adjustment due to the sheer cost disadvantages of the home.

     

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    hdl: 10419/282374
    Series: CESifo working papers ; 10686 (2023)
    Subjects: outsourcing; layoffs; IT-enabled services; wage inequality; market structure
    Scope: 1 Online-Ressource (circa 15 Seiten), Illustrationen
  21. Which employers share rents?
    a firm-level analysis for Japan
    Published: [2023]
    Publisher:  RIETI, [Tokyo, Japan]

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: RIETI discussion paper series ; 23-E, 048 (July 2023)
    Subjects: wage inequality; rent sharing; employers' characteristics
    Scope: 1 Online-Ressource (circa 25 Seiten)
  22. Skilled immigration in South Africa
    an input into the operation vulindlela review of critical skills and general work visas
    Published: May 2023
    Publisher:  Development Policy Research Unit, University of Cape Town, Cape Town, South Africa

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9781920633509
    Series: DPRU working paper ; 2023, 04
    Subjects: South Africa; labour migration; skilled immigration; unemployment; policy & regulatory frameworks; workvisas; wage inequality; foreign labour
    Scope: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  23. Automation and income inequality in Europe
    Published: October 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We study the effects of robot penetration on household income inequality in 14 European countries between 2006-2018, a period marked by the rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed... more

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    Verlag (kostenfrei)
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    DS 4
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    We study the effects of robot penetration on household income inequality in 14 European countries between 2006-2018, a period marked by the rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the United States. Using robot-driven wage and employment shocks as input to the EUROMOD microsimulation model, we find that automation had minor effects on income inequality. Household labour income diversification and tax and welfare policies largely absorbed labour market shocks caused by automation. Transfers played a key role in cushioning the transmission of these shocks to household incomes.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/282626
    Series: Discussion paper series / IZA ; no. 16499
    Subjects: robots; automation; tasks; income inequality; wage inequality; microsimulation
    Scope: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  24. Returns to education and wage inequality in Namibia
    a gendered analysis
    Published: September 2023
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    This paper estimates the returns to education and their implications for wage inequality using data from the 2015/16 Namibia Income and Expenditure Survey. The paper employs recentred influence function regression to analyse the impact of education... more

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    DS 248
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    This paper estimates the returns to education and their implications for wage inequality using data from the 2015/16 Namibia Income and Expenditure Survey. The paper employs recentred influence function regression to analyse the impact of education across the wage distribution and uses a simulation approach to assess the impact on wage inequality of educational equalization. The results indicate higher returns to education among women compared with men. The quantile results further reveal that within the sample of women, higher returns to education are observed at the lower percentile compared with the upper end of the distribution, while within the sample of men, higher returns to education are observed at the upper end of the wage distribution. Simulation results suggest that educational expansion substantially widens inequality relative to equalization efforts for both men and women. The policy implications include the need to prioritize reducing educational disparities and ensuring equal access to quality education. Targeted interventions should address the specific needs of disadvantaged groups, such as women and individuals from lower-income households, by improving educational quality and supporting vocational training.

     

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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9789292674205
    Other identifier:
    hdl: 10419/283808
    Series: WIDER working paper ; 2023, 112
    Subjects: returns to education; wage inequality; educational equalization; educational expansion; Namibia
    Scope: 1 Online-Ressource (circa 20 Seiten)