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Displaying results 1 to 13 of 13.

  1. Globalization and equality
    a cross-country analysis
    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
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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
  2. Financial integration and wage inequality
    evidence from European countries
    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
    Format: Online
    Other identifier:
    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
  3. Job mobility and assortative matching
    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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    Source: Union catalogues
    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
  4. Scarce workers, high wages?
    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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    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
  5. Ability distribution and dynamics of wage inequality
    unintended consequences of human capital accumulation
    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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    Source: Union catalogues
    Language: English
    Media type: Book
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    Other identifier:
    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
  6. The role of flexible wage components in gender wage difference
    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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    Source: Union catalogues
    Language: English
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    Other identifier:
    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
  7. The contribution of employer changes to aggregate wage mobility
    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
  8. Global value chains, employment, and wage inequality
    a study of Indian manufacturing
    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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    Source: Union catalogues
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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)
  9. The role of between- and within-occupation differences in wage inequality trends in Europe (2002-2018)
    Published: 2024
    Publisher:  European Commission, Seville

    This working paper presents a comparative analysis of the role played by occupational changes in recent wage inequality trends in six European countries between 2002 and 2018. Using the European Union Structure of Earnings Survey, the analysis shows... more

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    This working paper presents a comparative analysis of the role played by occupational changes in recent wage inequality trends in six European countries between 2002 and 2018. Using the European Union Structure of Earnings Survey, the analysis shows two patterns in the share of wage inequality explained by between-occupation differentials: while the relative importance of between-occupation trends has grown in Finland and the UK, it has diminished in Spain, France, Poland and Romania. Although between-occupation differentials account for a great share of total wages' variance, changes in the occupational structure (in particular, the patterns of job polarisation and upgrading widely discussed in the literature) have not driven recent wage inequality trends in Europe. Wage inequality, instead, has been mostly driven by changes in wage differentials within occupations. Finally, we found that occupations effectively account for the distribution of wages, yet their explanatory significance markedly declines at the highest wage tiers. This work contributes to a better understanding of how within- and between-occupation differences have influenced wage inequality trends in Europe. Consequently, our results add significant value to the debate about recent stratification theory, which has challenged the idea that occupations structure economic disparities and wage inequality as importantly as they once did.

     

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    Source: Union catalogues
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    Other identifier:
    hdl: 10419/306583
    Series: JRC working papers series on labour, education and technology ; 2024, 01
    Subjects: Europe; jobs; occupational structure; occupations; wage inequality
    Scope: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  10. Technological change in quantities
    Published: [2024]
    Publisher:  CORE, Louvain-la-Neuve

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    Source: Union catalogues
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    Other identifier:
    hdl: 2078.1/288507
    Series: LIDAM discussion paper CORE ; 2024, 17
    Subjects: quantity-bias; scale-bias; technological change; skill-bias; firm size distribution; wage inequality
    Scope: 1 Online-Ressource (circa 45 Seiten), Illustrationen
  11. Automation and income inequality in Europe
    Published: 2024
    Publisher:  RWI - Leibniz-Institut für Wirtschaftsforschung, Essen, Germany

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

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    We study the effects of robot penetration on household income inequality in 14 European countries between 2006-2018, a period of rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the US. 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. Wir untersuchen die Auswirkungen der Roboterdurchdringung auf die Ungleichheit der Haushaltseinkommen in 14 europäischen Ländern zwischen 2006 und 2018, einer Zeit der schnellen Einführung von Industrierobotern. Ähnlich wie in den USA hat die Automatisierung die relativen Stundenlöhne und die Beschäftigung von stärker belasteten demografischen Gruppen reduziert. Unter Verwendung von roboterbedingten Lohn- und Beschäftigungsschocks als Input für das Mikrosimulationsmodell EUROMOD finden wir, dass die Automatisierung nur geringe Auswirkungen auf die Einkommensungleichheit hatte. Die Diversifizierung des Arbeitseinkommens der Haushalte und Steuer- und Sozialpolitik fingen die durch die Automatisierung verursachten Arbeitsmarktschocks weitgehend ab. Transfers spielten eine Schlüsselrolle bei der Abfederung der Übertragung dieser Schocks auf die Haushaltseinkommen.

     

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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9783969732427
    Other identifier:
    hdl: 10419/287766
    Series: Ruhr economic papers ; #1070
    Subjects: Robots; automation; tasks; income inequality; wage inequality; microsimulation
    Scope: 1 Online-Ressource (circa 49 Seiten), Illustrationen
  12. Wage inequality consequences of expanding public childcare
    Published: [2024]
    Publisher:  ZEW - Leibniz Centre for European Economic Research, Mannheim, Germany

    This paper assesses the impact of a large expansion of public childcare in Germany on wage inequality. Exploiting regional variation in childcare supply over the 1990s, I show that in regions with stronger increases in childcare, wage inequality... more

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    This paper assesses the impact of a large expansion of public childcare in Germany on wage inequality. Exploiting regional variation in childcare supply over the 1990s, I show that in regions with stronger increases in childcare, wage inequality among women increased less strongly compared to regions with smaller increases. This is primarily driven by the lower half of the wage distribution and qualitatively similar for full- and part-time workers. Larger expansions in childcare, however, do not contribute to a further closing of the gender wage gap.

     

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    hdl: 10419/283614
    Series: Discussion paper / ZEW ; no. 24, 006 (02/2024)
    Subjects: wage inequality; childcare; gender wage gap
    Scope: 1 Online-Ressource (56 Seiten), Illustrationen
  13. Meritocracy across countries
    Published: April 2024
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Are labor markets in higher-income countries more meritocratic, in the sense that worker-job matching is based on skills rather than idiosyncratic attributes unrelated to productivity? If so, why? And what are the aggregate consequences? Using... more

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    Are labor markets in higher-income countries more meritocratic, in the sense that worker-job matching is based on skills rather than idiosyncratic attributes unrelated to productivity? If so, why? And what are the aggregate consequences? Using internationally comparable data on worker skills and job skill requirements of over 120,000 individuals across 28 countries, we document that workers' skills better match their jobs' skill requirements in higher-income countries. To quantify the role of worker-job matching in development accounting, we build an equilibrium matching model that allows for cross-country differences in three fundamentals: (i) the endowments of multidimensional worker skills and job skill requirements, which determine match feasibility; (ii) technology, which determines the returns to matching; and (iii) idiosyncratic matching frictions, which capture the role of nonproductive worker and job traits in the matching process. The estimated model delivers two key insights. First, improvements in worker-job matching due to reduced matching frictions account for only a small share of cross-country income differences. Second, however, improved worker-job matching is crucial for unlocking the gains from economic development generated by adopting frontier endowments and technology.

     

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    hdl: 10419/295961
    Series: Discussion paper series / IZA ; no. 16938
    Subjects: skills; sorting; matching; multidimensional heterogeneity; development accounting; wage inequality; gender; migration
    Scope: 1 Online-Ressource (circa 84 Seiten), Illustrationen