Steven B. Caudill, Charles O. Kroncke Jr, Franklin G. Mixon Jr
The labor economics and industrial organization literature is replete with studies showing a positive relationship between firm size and employees’ wages. However, no work to date has examined, particularly with regard to the inverse probability weighting approach taken in this study, whether this effect is present in a post-communist country shortly after economic transition. This study fills that void by testing for a firm size-wage effect in Estonia after it declared independence from the Soviet Union. In doing so, we employ a large micro-dataset from the Estonian Labor Force Survey and find that, holding several job, industry, and city characteristics constant, a statistically significant firm size-wage gap exists across workers employed by all types of firms, and separately for those employed across both for-profit and not-for-profit firms in Estonia after its economic transition.
{"title":"Is there a firm size-wage gap after economic transition? – An examination of for-profit and not-for-profit firms in Estonia","authors":"Steven B. Caudill, Charles O. Kroncke Jr, Franklin G. Mixon Jr","doi":"10.1111/labr.12212","DOIUrl":"10.1111/labr.12212","url":null,"abstract":"<p>The labor economics and industrial organization literature is replete with studies showing a positive relationship between firm size and employees’ wages. However, no work to date has examined, particularly with regard to the inverse probability weighting approach taken in this study, whether this effect is present in a post-communist country shortly after economic transition. This study fills that void by testing for a firm size-wage effect in Estonia after it declared independence from the Soviet Union. In doing so, we employ a large micro-dataset from the Estonian Labor Force Survey and find that, holding several job, industry, and city characteristics constant, a statistically significant firm size-wage gap exists across workers employed by all types of firms, and separately for those employed across both for-profit and not-for-profit firms in Estonia after its economic transition.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46198192","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Using tax-based longitudinal microdata from 1985 to 2016, I document how the widening income distribution in Italy is driven by younger cohorts. Entry wages started to decrease around the mid-1990s, at the same time returns to experience of new entrants in the labour market declined. Falling wage growth is linked to the institutional changes that occurred in the Italian labour market in the decade across the 2000s. I examine the impact of Italian labour market reforms on cohort-specific wage inequality by looking at the relationship between the number of temporary job spells and individual earnings. Results confirm that young and high-skilled new entrants show higher wage differential in comparison to older workers and that the increase in temporary jobs is a crucial factor in explaining the cohort wage gap.
{"title":"Temporary jobs and increasing inequality for recent cohorts in Italy","authors":"Alessio Tomelleri","doi":"10.1111/labr.12208","DOIUrl":"10.1111/labr.12208","url":null,"abstract":"<p>Using tax-based longitudinal microdata from 1985 to 2016, I document how the widening income distribution in Italy is driven by younger cohorts. Entry wages started to decrease around the mid-1990s, at the same time returns to experience of new entrants in the labour market declined. Falling wage growth is linked to the institutional changes that occurred in the Italian labour market in the decade across the 2000s. I examine the impact of Italian labour market reforms on cohort-specific wage inequality by looking at the relationship between the number of temporary job spells and individual earnings. Results confirm that young and high-skilled new entrants show higher wage differential in comparison to older workers and that the increase in temporary jobs is a crucial factor in explaining the cohort wage gap.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44008344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study employs personnel data from a large university to examine how supervisors utilize information on employees' job performance in promotion decisions. The study shows that better-performing employees are rewarded with promotions as a higher output of peer-reviewed publications and better quality of research output are associated with a higher probability of being promoted. The study also shows that supervisors compare their subordinates' job performance when deciding on promotions: employees who outperform their colleagues in terms of research output and research quality are more likely to be promoted. Subsequently, the study provides evidence to support the key premise of the tournament theory that promotions depend on relative comparisons of employees' performance.
{"title":"The role of personal and relative job performance in promotion decisions","authors":"Juho Jokinen PhD, Jaakko Pehkonen","doi":"10.1111/labr.12209","DOIUrl":"10.1111/labr.12209","url":null,"abstract":"<p>This study employs personnel data from a large university to examine how supervisors utilize information on employees' job performance in promotion decisions. The study shows that better-performing employees are rewarded with promotions as a higher output of peer-reviewed publications and better quality of research output are associated with a higher probability of being promoted. The study also shows that supervisors compare their subordinates' job performance when deciding on promotions: employees who outperform their colleagues in terms of research output and research quality are more likely to be promoted. Subsequently, the study provides evidence to support the key premise of the tournament theory that promotions depend on relative comparisons of employees' performance.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45900184","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
While flexible labour markets offer employment opportunities for unemployed individuals, they might not foster stable employment. This paper studies the determinants of unemployed welfare recipients’ transitions into employment and its stability in Germany. The analyses are based on an inflow sample of welfare recipients from large-scale administrative data and semi-parametric hazard models with individual-level frailty. Some labour market segments offer quick employment entry but not sustainable employment. While human capital is positively related to employment take-up and stability for both sexes, the role of several sociodemographic determinants differs by gender.
{"title":"Welfare recipients’ transition into employment and employment stability in Germany","authors":"Katharina Dengler, Katrin Hohmeyer, Cordula Zabel","doi":"10.1111/labr.12207","DOIUrl":"10.1111/labr.12207","url":null,"abstract":"<p>While flexible labour markets offer employment opportunities for unemployed individuals, they might not foster stable employment. This paper studies the determinants of unemployed welfare recipients’ transitions into employment and its stability in Germany. The analyses are based on an inflow sample of welfare recipients from large-scale administrative data and semi-parametric hazard models with individual-level frailty. Some labour market segments offer quick employment entry but not sustainable employment. While human capital is positively related to employment take-up and stability for both sexes, the role of several sociodemographic determinants differs by gender.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/labr.12207","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46202094","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.1215/15476715-9061703
John Tully
{"title":"Living and Dying on the Factory Floor: From the Outside In and the Inside Out","authors":"John Tully","doi":"10.1215/15476715-9061703","DOIUrl":"https://doi.org/10.1215/15476715-9061703","url":null,"abstract":"","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42392596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.1215/15476715-9061661
T. Carroll
{"title":"They Didn't See Us Coming: The Hidden History of Feminism in the Nineties","authors":"T. Carroll","doi":"10.1215/15476715-9061661","DOIUrl":"https://doi.org/10.1215/15476715-9061661","url":null,"abstract":"","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47845249","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The present study investigates long-term trends in female participation in the Greek labour market. The analysis presented decomposes the growth in the female participation rate between 1992 and 2020. The dataset used is the Greek Labour Force Survey (GLFS). The model type used is a binary age-period-cohort Probit model and a multinomial choice Probit model. A number of assumptions are made to identify the three effects separately. Model I use lagged unemployment as a proxy variable for the period effects and cohort fixed effects – where cohort is a proxy variable for year of birth – together with separate specifications for an interaction term of cohort and region and a linear trend. Model II uses a multinomial Probit model in order to examine whether the decision of a female to enter or not the labour market interacts with the type of work she is choosing, with a number of assumptions again used to identify the three effects separately. The results suggest that the increasing female participation rate is mostly due to cohort effects, when there are also observable age and period effects. Regarding the choice model, results suggest that the period effect has a higher significance on job choice compared with the cohort effect. Age effects are observable and significant in both models.
{"title":"Determinants of female labour force participation: Evidence from Greece","authors":"Ioannis Petrakis","doi":"10.1111/labr.12206","DOIUrl":"10.1111/labr.12206","url":null,"abstract":"<p>The present study investigates long-term trends in female participation in the Greek labour market. The analysis presented decomposes the growth in the female participation rate between 1992 and 2020. The dataset used is the Greek Labour Force Survey (GLFS). The model type used is a binary age-period-cohort Probit model and a multinomial choice Probit model. A number of assumptions are made to identify the three effects separately. Model I use lagged unemployment as a proxy variable for the period effects and cohort fixed effects – where cohort is a proxy variable for year of birth – together with separate specifications for an interaction term of cohort and region and a linear trend. Model II uses a multinomial Probit model in order to examine whether the decision of a female to enter or not the labour market interacts with the type of work she is choosing, with a number of assumptions again used to identify the three effects separately. The results suggest that the increasing female participation rate is mostly due to cohort effects, when there are also observable age and period effects. Regarding the choice model, results suggest that the period effect has a higher significance on job choice compared with the cohort effect. Age effects are observable and significant in both models.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/labr.12206","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49236636","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper contributes to the literature on old employment barriers by exploring empirically the relative importance of mental versus physical health in determining work. It combines regression and variance decomposition analyses to quantify the respective role of mental and physical health. The data used are from SHARE and inform in great detail on the health but also work status (employment and hours) of individuals aged 50+, interviewed between 2004 and 2017 in 21 European countries. The main result of the paper is that of the rather limited role of mental health – in comparison with physical health – in accounting for older individuals’ work. The paper also shows that health (physical or mental) is much better at predicting old people's propensity to be in employment than the number of hours they work. Finally, the paper reveals that, in comparison with women, men's work appears to be more driven by their health status.
{"title":"Work beyond the age of 50. What role for mental versus physical health?","authors":"Vincent Vandenberghe","doi":"10.1111/labr.12205","DOIUrl":"10.1111/labr.12205","url":null,"abstract":"<p>This paper contributes to the literature on old employment barriers by exploring empirically the relative importance of mental versus physical health in determining work. It combines regression and variance decomposition analyses to quantify the respective role of mental and physical health. The data used are from SHARE and inform in great detail on the health but also work status (employment and hours) of individuals aged 50+, interviewed between 2004 and 2017 in 21 European countries. The main result of the paper is that of the rather limited role of mental health – in comparison with physical health – in accounting for older individuals’ work. The paper also shows that health (physical or mental) is much better at predicting old people's propensity to be in employment than the number of hours they work. Finally, the paper reveals that, in comparison with women, men's work appears to be more driven by their health status.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/labr.12205","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64397292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The growth in finance wages has contributed to the increase in top incomes over the last decades. The finance wage premium has been studied from various viewpoints in recent years, however, not from the gender perspective. Studies have shown that the gender wage gap tends to increase at top incomes. As finance wages are increasing and if the benefits of working in finance are mostly claimed by men, the overall gender wage gap will persist. Using Finnish registry data from 1990 to 2014, this paper shows that the finance wage premium differs considerably between men and women. Overall, the finance premium has increased over time. The premium of men is larger than that of women at all hierarchy levels. Women at manager and expert positions in finance get a premium, but not at clerical level. Men on the other hand receive a premium at all hierarchy levels. The negative female effect is larger at higher points of the wage distribution, indicative of a glass ceiling effect. For men, the premium has increased especially at the top of the wage distribution.
{"title":"The finance wage premium: Finnish evidence from a gender perspective","authors":"Saara Vaahtoniemi","doi":"10.1111/labr.12203","DOIUrl":"10.1111/labr.12203","url":null,"abstract":"<p>The growth in finance wages has contributed to the increase in top incomes over the last decades. The finance wage premium has been studied from various viewpoints in recent years, however, not from the gender perspective. Studies have shown that the gender wage gap tends to increase at top incomes. As finance wages are increasing and if the benefits of working in finance are mostly claimed by men, the overall gender wage gap will persist. Using Finnish registry data from 1990 to 2014, this paper shows that the finance wage premium differs considerably between men and women. Overall, the finance premium has increased over time. The premium of men is larger than that of women at all hierarchy levels. Women at manager and expert positions in finance get a premium, but not at clerical level. Men on the other hand receive a premium at all hierarchy levels. The negative female effect is larger at higher points of the wage distribution, indicative of a glass ceiling effect. For men, the premium has increased especially at the top of the wage distribution.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-07-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/labr.12203","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48991210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper introduces strong complementarities in labour into an otherwise classical Diamond–Mortensen–Pissarides search model. Specifically, two workers are required to perform a task. The assumption of Nash bargaining is maintained to represent the Hosios condition transparently. We show that this setup leads to additional externalities that require more than a Hosios-style condition to be met. The surplus must be shared between the workers so that the employer internalizes additional externalities. This makes implementing efficiency even more challenging.
{"title":"Complementary jobs and optimal matching","authors":"Markus Gebauer","doi":"10.1111/labr.12204","DOIUrl":"10.1111/labr.12204","url":null,"abstract":"<p>This paper introduces strong complementarities in labour into an otherwise classical Diamond–Mortensen–Pissarides search model. Specifically, two workers are required to perform a task. The assumption of Nash bargaining is maintained to represent the Hosios condition transparently. We show that this setup leads to additional externalities that require more than a Hosios-style condition to be met. The surplus must be shared between the workers so that the employer internalizes additional externalities. This makes implementing efficiency even more challenging.</p>","PeriodicalId":45843,"journal":{"name":"Labour-England","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2021-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/labr.12204","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42938567","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}