This paper studies how legal strength—the effectiveness of a legal system in governing the use of laws—influences trade unions in China. By focusing on the institutional environment in which laws are practiced, I theorize that a strong legal system can empower trade unions through direct legal mobilization and legal consciousness. Empirical analysis with data collected from multiple sources supports this prediction. I find that unionization is more prevalent in strong legal systems than in weak ones. Moreover, Chinese unions improve labor outcomes to a greater extent when one or more dimensions of the legal systems are strong.
Applying decomposition methods to data from the Annual Survey of Hours and Earnings, we highlight the importance of performance-related pay to the contemporary UK gender pay gap. We find that the lower probability of females being employed in performance-related pay jobs explains a sizeable proportion of the gender pay gap, particularly at the top end of the annual earnings distribution. The latter is driven by its influence within the private sector.
Covering the bulk of economic activity in ten developed countries over 1982–2005, this paper is the first to study the distinct effects of Information Technologies (IT) and Communication Technologies (CT) on labor, and in particular, the relative demand for different education groups of workers. Consistent with evidence on automation-induced job and skill polarization, IT capital intensity decreased the demand for the middle-educated relative to the highly and low-educated. Instead, CT capital intensity increased the demand for the highly educated relative to the low-educated, suggesting that CT facilitate the leverage of knowledge by the former group in production teams or the identification of new investment opportunities for their companies. Additional evidence, especially on the effects of CT, yields a richer set of insights.
One of the core objectives of unions is to raise the wages of the lowest paid. Utilizing a panel of individual-matched employee–employer data covering the Norwegian private sector in the period 2000–2014, I investigate how workplace union density is related to individual low-pay risk. By exploiting changes in tax deductions for union members in Norway as a source of exogenous variation, a negative effect of increased union density on low-pay risk is identified within jobs. The results further suggest that the effect of local bargaining power on individual low-pay probability is larger among immigrants than among natives.
The use of social contacts in the labor market is widespread. This paper investigates the association between personal connections and hiring probabilities as well as re-employment outcomes of displaced workers in Portugal. The hiring analysis indicates that displaced workers with a direct link to a firm through a former coworker are three times more likely to be hired compared to workers displaced from the same closing event who lack such a tie. Moreover, we show that successful displaced workers with a connection in the hiring firm have higher entry-level wages and enjoy greater job security.
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