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In this paper, we investigate the relationship between local wages and the internal structure of the regional knowledge base. The purpose is to assess if the workers' compensations are related to the peculiarities of the knowledge base of the regions in which they supply their labor services. The test of this hypothesis is based on the assessment of the impact of related vis-à-vis unrelated knowledge variety on cross-regional wage differentials. The empirical analysis is carried out by exploiting patent data and a unique employer–employee administrative dataset. First, using OECD-PATREG data on patent filing, we build information entropy indexes proxying the variety of NUTS 3 regions' knowledge bases, and the decomposition in the related and unrelated component. Second, we assess the impact of these indexes on wages based on administrative data from the Italian National Institute of Social Security. Our results suggest that workers employed in regions with a heterogenous knowledge structure earn positive wage premia, while related variety has a negative effect on compensation levels. [ABSTRACT FROM AUTHOR]

Are countries reforming their labour market constrained by external political or financial institutions? This article analyses the supranational pressures impacting wage policy in European member states. Theoretically, it takes inspiration from the literature on international financial markets to analyse the key phases of a nascent multi-level policy cycle, where the European Commission plays a pivotal role. Empirically, it distinguishes between wage policy prescriptions (CSR database, 2011–2019, complemented with EUR-Lex) and reform events (LabRef database, 2008–2019) granting more or less protection to workers. Methodologically, it employs mixed regression models with country and year random intercepts finding out that: (a) the Commission, when recommending wage policy, unambiguously prefers reforms reducing workers' protection, thus displaying preferences aligned with those of international financial institutions; (b) through external conditionality, the pressures stemming from such biased approach exert a tangible impact on national policymaking, ultimately resulting in weakened labour market institutions and reduced well-being of workers. [ABSTRACT FROM AUTHOR]

This article provides long-term evidence on how wage differentials between permanent and temporary workers are shaped by institutions that play a key role in labour market dualism, i.e. industrial relations, employment protection legislation and unemployment benefits. A two-step multilevel approach with fixed effects is employed using EU-SILC data for 25 European countries spanning up to 17 years (waves 2004–2020, N  = 397) to estimate the moderating effects of several institutions and their interactions on the wage gap by contract type and across the whole wage distribution. The results show that more insider-oriented institutions tend to widen wage differentials and that the impact of institutional reforms on the wage gap varies greatly with the given institutional context. Overall, policy trends towards flexibilization risk widening insider–outsider divides due to accumulating labour market risks for temporary workers, thus increasing labour market segmentation by contract type. [ABSTRACT FROM AUTHOR]

This paper investigates how labour-market tightness affects market outcomes if firms use informal, self-enforcing, agreements to motivate workers. We characterise profit-maximising equilibria and show that an increase in the supply of homogeneous workers can increase wages. Moreover, even though all workers are identical in terms of skills or productivity, profit-maximising discrimination equilibria exist. There, a group of majority workers is paid higher wages than a group of minority workers, who may even be completely excluded. Minimum wages can reduce such discrimination and increase employment. We discuss how these results relate to empirical evidence on downward wage rigidity, immigration, the gender pay gap and credentialism. [ABSTRACT FROM AUTHOR]

Scholars have found that as the proportion of female workers in an occupation grows, wages generally decline. Yet, we know little about how this gender inequality intersects with other labor market inequalities. This study evaluates the feminization-wage relationship of an increasingly economically polarized post-2000 US labor market. First, I hypothesize that the negative effect of feminization on wages has diminished in high-skilled occupations due to the declining prejudice against (highly educated) women and increasing requirements for higher education, which functions as a form of social closure. Second, because of the increasing demand for "people skills" in higher-skilled occupations and their association with women, workers in higher-skilled occupations that require these skills may experience positive effects of feminization on wages. Not all people skills, however, are associated with women and similarly rewarded. Thus, I examine three people skills—persuasion, managerial, and sociability—that have different gender stereotypes. I test hypotheses using occupational-level fixed-effects models with individual-level data from the American Community Survey 2003–2019 (N  = 15,996,526) and time-varying occupational-level data from the Occupational Information Network 2003–2019 (N  = 460). Results show that for workers in occupations requiring more than sixteen years of education, feminization corresponds with higher wages. Additionally, the positive feminization-wage relationship is larger in occupations with a high demand for a gender-neutral people skill, persuasion. This moderation effect is not found for sociability and managerial skills, which are associated with women and men, respectively. This study calls for greater attention to how labor market polarization has shaped gender inequality. [ABSTRACT FROM AUTHOR]

Understanding disparities in the rates at which men and women's wages grow over the life course is critical to explaining the gender pay gap. Using panel data from 2009 to 2019 for the United Kingdom, we examine how differences in the rates and types of job mobility of men and women—with and without children—influence the evolution of wages. We contrast the rates and wage returns associated with different types of job moves, including moving employer for family reason, moving for wage or career-related reasons, and changing jobs but remaining with the same employer. We find important gender and parenthood differences in the types of mobility experience, with mothers most likely to switch employers for family-related reasons and least likely to move for wage or career reasons, or to change jobs with the same employer. While job changes with the same employer and career related employer changes had large positive wage returns, changing employers for family-related reasons was associated with significant wage losses. We show that differences in job mobility between mothers and other workers are largest for young employees (under 30), the period over which wages also grow most rapidly in response to career related external, or internal, job moves. These mobility differences play an important role in explaining the rapid growth in the motherhood wage gap in the years after birth. [ABSTRACT FROM AUTHOR]

We examine the plausibility of using prejudice-based discrimination to explain the wage differences among young men and women in eleven European countries. Utilizing a sample of over 20,000 individuals and estimating a series of country-specific regression models that adjust for ability and selection bias, we find evidence that leads to a good possibility of prejudice-based discrimination in Greece, Italy, Spain, Czechia, Hungary, and the UK. In the UK, this possibility of discrimination is mitigated to an extent by gender differences in credentials. In Austria, Germany, Denmark, and Switzerland, we find no evidence for prejudice-based discrimination. Oaxaca decompositions reveal that if women's own human capital characteristics were rewarded at the same level as men's in the former (six) countries, they would expect a wage gain. [ABSTRACT FROM AUTHOR]

Wage inequality between workers with different levels of educational attainment has been shown to increase over the life course. In this study, we investigate to what extent this growth is explained by temporary employment. Using linked employer-employee register data from the Netherlands, we follow the labour market careers of workers born in 1979. We decompose the impact of temporary employment on the change in the wage gap over the life course into two distinct components: (i) changes in group-specific temporary employment rates (risk) and (ii) changes in group-specific effects of temporary employment on wages (vulnerability). In line with previous research, we find a marked growth of the educational wage gap over the life course in the Netherlands. While group differences in temporary employment risk changed throughout the observation period to the detriment of less-educated workers, group differences in vulnerability to temporary employment diverged specifically during the early life course. Overall, temporary employment explains around 9 per cent of the change in the wage gap between workers with different levels of educational attainment by the age of 38 relative to age 28. [ABSTRACT FROM AUTHOR]

We document that a more generous unemployment insurance (UI) system shifts labor supply from safer to riskier firms and reduces the compensating wage differentials that risky firms need to pay. Consequently, a more generous UI system increases risky firms' value and fosters entrepreneurship by reducing new firms' labor costs. Exploiting a UI reform in Brazil that affects only part of the workforce allows us to compare labor supply for workers with different degrees of UI protection within the same firm, sharpening the identification of the results. Altogether, our results suggest that UI provides a transfer system from safe to risky firms. [ABSTRACT FROM AUTHOR]

The gender ask gap measures the extent to which women ask for lower salaries than comparable men. This article studies its role in generating wage inequality, using novel data from an online recruitment platform for full-time engineering jobs: Hired.com. To use the platform, job candidates must post an ask salary, stating how much they want to make in their next job. Firms then apply to candidates by offering them a bid salary, solely based on the candidate's résumé and ask salary. If the candidate is hired, a final salary is recorded. After adjusting for résumé characteristics, the ask gap is 2.9%, the bid gap is 2.2%, and the final offer gap is 1.4%. Further controlling for the ask salary explains the entirety of the residual gender gaps in bid and final salaries. To further provide evidence of the causal effect of the ask salary on the bid salary, I exploit an unanticipated change in how candidates were prompted to provide their ask. For some candidates in mid-2018, the answer box used to solicit the ask salary was changed from an empty field to an entry prefilled with the median bid salary for similar candidates. I find that this change drove the ask, bid, and final offer gaps to zero. In addition, women did not receive fewer bids or final offers than men did due to the change, suggesting they faced little penalty for demanding comparable wages. [ABSTRACT FROM AUTHOR]

In this paper, we analyse Minskian dynamics in the US economy via an empirical application of Minsky's financing regime classifications to a panel of nonfinancial corporations. First, we map Minsky's definitions of hedge, speculative and Ponzi finance onto firm-level data to describe the evolution of Minskian regimes. We highlight striking growth in the share of Ponzi firms in the post-1970 US, concentrated among small corporations. This secular growth in the incidence of Ponzi firms is consistent with the possibility of a long wave of increasingly fragile finance in the US economy. Second, we explore the possibility of short-run Minskian dynamics at a business cycle frequency. Using linear probability models relating firms' probability of being Ponzi to the aggregate output gap, which captures short-term macroeconomic fluctuations exogenous to individual firms, we find that the relationship between aggregate downturns and the probability of being Ponzi is statistically significant, but very small (almost zero). This result is corroborated by quantile regressions using a continuous measure of financial fragility, the interest coverage ratio, which identify almost zero effects of short-term fluctuations on financial fragility across the interest coverage distribution. Together, these results speak to an important question in the theoretical literature on financial fragility regarding the duration of Minskian cycles, and lend support, in particular, to the contention that Minskian dynamics may take the form of long waves, but do not operate at business cycle frequencies. [ABSTRACT FROM AUTHOR]

Studies of wage inequality concentrate on private wages. Public sector wages are typically assumed to contribute to the overall wage equality. We challenge this understanding in an analysis of the relative skill premium in the public versus private sectors. The analysis of heterogeneity across gender and geography is based on rich register data for Norway. The raw data confirm the relative wage compression in the public sector. However, this is a male phenomenon and only prevalent in large cities when unobserved worker and firm characteristics are taken into account. With identification based on shifters between private and public sectors and movers between city-size groups, wage setting for female workers in the public sector increases wage inequality in all regions, particularly in the periphery. The result is consistent with policies promoting the recruitment of high-educated female workers and the expansion of public services in the periphery counterbalancing the desired equality effect of public wages. [ABSTRACT FROM AUTHOR]

This article reassesses the conventional wisdom that public-sector jobs have worse pay but better amenities than equivalent private-sector jobs, using data from 22 European countries and the USA. Earnings gaps are shown to be heterogeneous across countries—public sector work carries a premium in Europe but a penalty in the USA. However, whereas European public-sector workers report better job amenities—better job security and work–life balance—than their private-sector counterparts, there are no public–private amenity differentials for US workers. Public-sector work also has fewer pay-for-performance schemes. Finally, the public sector does not seem to ensure a fairer work environment, compared to the private sector, in terms of workplace discrimination and harassment. These stylized facts inform the external validity of extrapolating individual case studies to different contexts. [ABSTRACT FROM AUTHOR]

Using data on fifteen countries based on the harmonization of IALS and PIAC data, we provide a cross-national analysis of the evolution of the role of educational attainment and cognitive skills as mediators of intergenerational inequalities between 1994 and 2015. We find that the association between parents' education and children's earnings is large and highly stable over time in most countries, except for Scandinavian countries, where we detect a downward trend. Conversely, the United States stands out as the country displaying the largest earning differentials by parents' education and as the only country where these differentials increased over time. We demonstrate that educational attainment and skills contributed in different ways to the persistence of these intergenerational inequalities. On the one hand, educational equalization was compensated by increasing earning returns to education in several countries. On the other hand, the association between parents' education and cognitive skills, as well as the related earning returns, stayed largely unchanged across these two decades. [ABSTRACT FROM AUTHOR]

Using Danish matched employer–employee data, I compare the relative pay of men and women to their relative productivity as measured by production function estimation. I find that the gender "productivity gap" is 8%, implying that almost two thirds of the residual gender wage gap is due to productivity differences between men and women. Motherhood plays an important role, yet it also reveals a puzzle: The pay gap for mothers is entirely explained by productivity, whereas the gap for non-mothers is not. In addition, the decoupling of pay and productivity for women without children happens during their prime-child bearing years. These estimates are robust to a variety of specifications for the impact of observables on productivity, and robust to accounting for endogenous sorting of women into less productive firms using a control-function approach. This paper also provides estimates of the productivity gap across industries and occupations, finding the same general patterns for mothers compared to women without children within these subgroups. [ABSTRACT FROM AUTHOR]

Wage gaps between "skilled" and "unskilled" earners in the United States are conventionally attributed to U.S. workers' "skill deficits," or lack of skills necessary to deal with technological change, particularly automation. This paper argues instead that skills deficit/automation claims have always been a weak explanation for post-1979 trends. Since the mid-1990s all indications are that there is no basis for considering automation to be a significant factor in wage suppression or the growth of wage inequality. Rather, inequality growth has been an outgrowth of developments in the labor market rather than product markets. The key dynamic undercutting the typical worker's wage growth has been the strengthening of employers' power relative to their white-collar and blue-collar workers. The cause has not been monopoly firms exercising their power in product markets by charging higher prices to consumers. Monopolization has indeed contributed to wage suppression, but even this factor has largely run through the labor market, as monopoly firms squeezed supplier chain firms which in turn undercut their own workers' wages while seeing a profit squeeze as well. The paper concludes that what is needed is a better balancing of power in the labor market rather than a perfecting of competition. [ABSTRACT FROM AUTHOR]

Organizational research has revealed considerable variation in immigrant–native pay inequalities across workplace contexts. However, less is known about how broader labor market institutions intersect in the local dynamics of wage setting between employees of immigrant and native backgrounds. We argue that union density and higher shares of employees in licensed occupations in workplaces constrain organizational opportunity structures for unequal pay according to immigrant backgrounds. Our analysis of longitudinal linked employer–employee administrative data for the Norwegian labor market shows that the wage gap between immigrants and natives decreases with increasing workplace unionization, but almost exclusively for immigrants who are union members. Next, licensure raises pay at the individual and workplace levels, although any reduction in immigrant–native pay gaps is contingent on immigrants' access to licensed jobs. Our findings support the claim that institutional regulation in the workplace reduces the organizational scope of unequal pay based on immigrant status. [ABSTRACT FROM AUTHOR]

Much of the gender pay gap is generated within workplaces, making it paramount to understand which workplace policies effectively address gaps. Our article asks when policies limit gender pay gaps across employee tenure to identify potential temporal weak points. We analyze a representative panel of 10,000 establishments with over 850,000 employees using the 2005–19 waves of German-linked employer–employee data (LIAB). Two key findings emerge. First, a temporal perspective on workplace policies reveals that no policy under study—formalization, identity-based career programs, and child care assistance—reduces gender pay gaps at hire. Instead, policies only address additional disparities that accumulate after hire. Second, only identity-based career programs narrow gender disparities for all women. In contrast, seemingly gender-neutral formalization is insufficient, while providing employer-sponsored child care has mixed effects depending on employees' education. We conclude by discussing the implications of these findings for organizational policy and future research. [ABSTRACT FROM AUTHOR]

We study horizontal between-group cultural transmission using Stalin's ethnic deportations as a historical experiment. Over 2 million Soviet citizens, mostly Germans and Chechens, were forcibly relocated from the western to eastern parts of the USSR during WWII solely based on ethnicity. As a result, the native population of the deportation destinations was exogenously exposed to groups with drastically different gender norms and behavior. We combine historical and contemporary data to document that present-day gender equality in labor force participation, business leadership, and fertility as well as pro-gender-equality attitudes are higher among local native population of deportation destinations with a larger presence of Protestant compared to Muslim deportees. The effects are stronger for culturally closer groups and when adopting deportee norms is less costly. The results cannot be explained by selection, vertical cultural transmission, or deportee impact on the local economy. The evidence strongly suggests that gender norms diffused horizontally from deportees to the local population through imitation and learning. [ABSTRACT FROM AUTHOR]

This study investigates whether an intervention that provided high school seniors with information on costs and economic returns to tertiary education and on the long-term earnings prospects of college graduates from different study fields enhances the probability that male and female students opt for financially more rewarding study fields and for business-related or STEM fields with a lower share of women. It extends our understanding on the potentials of information interventions for reducing gender segregation in tertiary education. We draw on a field experiment in one German federal state, Berlin, which included a randomized information intervention, and analyse longitudinal data from 1,036 students in schools with a high share of less privileged students. Our results show that a short and low-cost information intervention on costs and returns to college education, including returns in different fields of study, can substantially reduce women's enrolment in care/social subjects, increase their enrolment in other, non-technical fields while also increasing men's enrolment in technical fields with above-average earnings. The overall effects appear limited in challenging the gender-typicality of enrolment choices, as students tend to choose more profitable majors while avoiding gender-atypical fields. [ABSTRACT FROM AUTHOR]

The division of labour remains persistently gendered, in particular among couples with children. Previous research shows that women's lower economic resources are an important factor driving these inequalities, but because gender and (relative) earnings are highly correlated in male–female couples, their relative importance is difficult to disentangle with observational data. Using a factorial survey conducted among approximately 700 employed men and women of childbearing age in Sweden, the United Kingdom, and the Netherlands, the contribution of relative earnings and gender in explaining work-care divisions in couples with children is disentangled. The results show that men and women do not differ in their preferences for their own work hours after childbirth, but both prefer the father to work more hours than the mother. Moreover, the combination of own and partners' preferred hours shows that men and women in all three countries prefer a modified male-breadwinner model after childbirth in scenarios where the male partner earns more or partners have equal earnings. Preferences for egalitarian divisions of labour appear to be slightly stronger in men compared to women and respondents with more egalitarian views on care tasks show less gender-specialization. [ABSTRACT FROM AUTHOR]

Price knowledge is a key antecedent of many consumer judgments and decisions. This article examines consumers' ability to form accurate beliefs about the minimum, the maximum, and the overall variability of prices for multiple product categories. Eight experiments provide evidence for a novel phenomenon we call dispersion spillover : Consumers tend to overestimate price dispersion in a category after encountering another category in which prices are more dispersed (vs. equally or less dispersed). Our experiments show that this dispersion spillover is consequential: It influences the likelihood that consumers will search for (and find) better prices and offers, and how much consumers bid in auctions. Finally, we disentangle two cognitive processes that might underlie dispersion spillover. Our results suggest that judgments of dispersion are not only based on specific prices stored in memory and that dispersion spillover does not simply reflect the inappropriate activation of prices from other categories. Instead, it appears that consumers also form "intuitive statistics" of dispersion: Summary representations that encode the dispersion of prices in the environment but that are insufficiently category specific. [ABSTRACT FROM AUTHOR]

This article investigates the causal effect of import shocks on the wage distribution using individual-level data from the UK in the period 1997–2010. The analysis exploits regional variation in initial industrial structure and concentration for identification, and applies a group IV quantile approach to estimate the effect of import shocks on workers at different parts of the wage distribution. The study finds that the effect of import shocks generated by increased import competition is concentrated on the middle of the wage distribution: while the import shocks negatively and significantly affect workers at the bottom-middle of the wage distribution, its effect on the very bottom and upper parts of the wage groups is insignificant. Moreover, the study finds that this labour market adjustment takes place through a reduction in the hourly wage rather than a decline in total hours worked. [ABSTRACT FROM AUTHOR]

This article examines UK immigrant-native wage differentials for men across major first- and second-generation immigrant groups with the UK Household Longitudinal Study (UKHLS) pooling cross-sections over the years 2009–19. I find that first-generation immigrants with UK human capital experience less of a wage disadvantage than their immigrant counterparts with foreign language proficiency, qualifications, and work experience. Conditional on the heterogeneity in these productivity characteristics of first-generation immigrants, I observe no intergenerational economic progress across the two generations relative to UK natives. Using a conditional decomposition shows that UK work experience and not the source country of study for the qualification is a key factor in reducing first-generation, immigrant-native wage differentials in the UK. [ABSTRACT FROM AUTHOR]

Less-educated workers have the lowest participation rates in job-related further training across the industrialized world, but the extent of their disadvantage varies. Using data on 28 high- and middle-income countries, we assess different explanations for less-educated workers' training disadvantage relative to intermediate-educated workers, with a focus on the role of labor market allocation (i.e. job tasks, other job features and firm characteristics). Shapley decompositions reveal a broadly similar pattern for all countries: differences in labor market allocation between less- and intermediate-educated workers are more important for explaining the training gap than differences in individual learning disposition (i.e. cognitive skills and motivation to learn). Our analysis further suggests that the training gap is related to educational and labor market institutions and that labor market allocation processes play a key role in mediating any institutional 'effects'. Strong conclusions regarding the role of institutions are hampered by the small country-level sample, however. [ABSTRACT FROM AUTHOR]

It is still a puzzling question which gender inequalities in the labour market are perceived as fair and which are not – in the eye of the beholder. This study focuses on gender differences in the perceptions of the fairness of one's own wage and the role of the occupational context individuals are embedded in. Based on data collected from 27 European countries as part of the 2018 European Social Survey (Round 9), our study contributes to the growing field of wage fairness perceptions by analysing the role of the occupational context (measured as the share of women and the gender pay gap in the respondent's occupation), and how it moderates gender differences in fairness perceptions. Results indicate that – overall – female workers across Europe perceive their wages more often as unfairly "too low" than their male counterparts within the same country context and occupation, and that this gender gap is more pronounced in occupations with a high proportion of women and higher levels of gender inequality. We interpret these results as an indicator of growing awareness among women regarding the persisting "unfair" gendered wage distributions. [ABSTRACT FROM AUTHOR]

This article presents an Agent-Based Model (ABM) that seeks to explain the concordance of sluggish growth of productivity and of real wages found in macroeconomic statistics, and the increased dispersion of firm productivity and worker earnings found in micro level statistics in advanced economies at the turn of the 21st century. It shows that a single market process unleashed by the decline of unionization can account for both the macro- and micro-economic phenomena, and that deunionization can be modeled as an endogenous outcome of competition between high wage firms seeking to raise productive capacity and low productivity firms seeking to cut wages. The model highlights the antipodal competitive dynamics between a "winner-takes-all economy" in which corporate strategies focused on cost reductions lead to divergence in productivity and wages and a "social market economy" in which competition rewards the accumulation of firm-level capabilities and worker skills with a more egalitarian wage structure. [ABSTRACT FROM AUTHOR]

This article investigates gender differences in the job search process in the field and lab. Our analysis is based on rich information on initial job offers and acceptances from undergraduates of Boston University's Questrom School of Business. We find (i) a clear gender difference in the timing of job offer acceptance, with women accepting jobs substantially earlier than men, and (ii) a sizable gender earnings gap in accepted offers, which narrows in favor of women over the course of the job search period. To understand these patterns, we develop a job search model that incorporates gender differences in risk aversion and overoptimism about prospective offers. We validate the model's assumptions and predictions using the survey data and present empirical evidence that the job search patterns in the field can be partly explained by the greater risk aversion displayed by women and the higher levels of overoptimism displayed by men. We replicate these findings in a laboratory experiment that features sequential job search and provide direct evidence on the purported mechanisms. Our findings highlight the importance of risk preferences and beliefs for gender differences in job-finding behavior and, consequently, early-career wage gaps among the highly educated. [ABSTRACT FROM AUTHOR]

This study investigates the hourly wage gap between 25- and 55-year-old temporary and permanent employees across 30 countries worldwide based on Luxembourg Income Study data from 2000 to 2019 supplemented by other survey data. Two-stage multilevel regressions reveal wage disadvantages for temporary workers, particularly for prime-age workers and those working in medium-/high-level occupations. There is no evidence that a stronger institutional dualization in terms of stronger employment protection for permanent contracts increases the wage gap. Instead partial deregulation matters: In countries where permanent workers are strongly protected, the wage gap is larger if the use of temporary contracts is deregulated. Moreover, results suggest that the larger the size of the temporary employment segment the larger the wage gap. Thus, our findings indicate that stronger institutional and structural labor market dualism amplifies labor market inequality in terms of wage gaps between temporary and permanent workers. [ABSTRACT FROM AUTHOR]

Rising wage inequality in wealthy countries is disproportionately driven by widening differences in pay between workplaces, through increasingly homogenous workforces as well as widening differences in the pay of similar workers. While this is found consistently across countries, the variation in trends highlights the need to study institutional settings. This paper uses cross-national representative European data from the Structure of Earnings Survey to study the trends in wage inequality over time between and within firms, linking these to changes in structural and institutional factors. Indeed, common structural changes such as globalization and digitalization contribute to rising wage inequality across otherwise similar workers within and between establishments. However, the institutional context plays an important role: where employers' pay setting is constrained through more biting minimum wages or multi-employer collective bargaining, this inequality is compressed and does not grow as much. [ABSTRACT FROM AUTHOR]

This article contextualises the adoption of the Directive 2022/2041 (EU) on adequate minimum wages. The analysis considers wage adequacy, collective bargaining coverage, and the combat of in-work poverty as the main pillars on which the directive is built. The aim is to show the potential and limits of the directive's approach to wage regulation, in the light of the stringent limits on EU competence deriving from EU treaties. [ABSTRACT FROM AUTHOR]

Using a regulatory analysis from Martinez Lucio and Mackenzie (2014 and 2016), this study contributes to debates concerning the capacity of 'soft' regulation to advance employment conditions and outcomes. This study explores the implementation of a real living wage policy for employees in outsourced Scottish social care. Despite employer compliance in implementing the living wage, it had a mixed impact on the income of workers and did not improve staff recruitment and retention. The theoretical framework challenges recent optimistic views concerning the impact of such regulation by revealing unintended and problematic consequences, such as problems with differentials and providers walking away from contracts. It further reveals how actor roles, interests, power resources and inter-relationships, as well as surrounding structural contextual influences (austerity, marketisation and engrained values and processes in political settlements), interacted to shape these outcomes. Insights from this study include that 'soft' regulation was unable to create conditions for actors such as trade unions, employers and non-governmental organisations to colonise or seize the regulatory space to secure the full benefits of the Scottish Living Wage. The political settlement with the Scottish Government allowed local authorities to retain coercive control over other actors in the regulatory space. Employers and trade unions were further hindered by lack of unity and continued isolation from decisions, respectively. Surrounding economic and ideological restrictions imposed by the central UK government's austerity agenda, and the retention of powers over employment regulation added to the failure of these 'soft' measures to increase pay and improve recruitment and retention in social care. [ABSTRACT FROM AUTHOR]

While employment laws exist to protect workers from the unfair exploitation, evidence suggests that wage theft is a prominent practice. Wage theft has received considerable public policy attention in several common law countries leading to the introduction of new legislation on the basis that existing legal regulations were inadequate and because the effects of wage theft are particularly deleterious for low-wage workers. Wage theft though remains underexplored in an Irish policy context. This article examines whether Ireland needs stronger laws to address wage theft by assessing if existing minimum wage and working time employment legislation provide an effective remedy for workers. The analysis finds that Irish laws already contain many provisions which new wage theft laws in other jurisdictions have introduced, suggesting radically new legislation is not needed. Several features of existing laws though obstruct workers in seeking remedy for underpayments and require amendment. Changing legislation, however, will likely be insufficient for an effective enforcement regime and it must be supplemented by statutory support for collective representation and enhancing labour inspectorate capacity to act on workers' behalf. [ABSTRACT FROM AUTHOR]

Widely held gender stereotypes present obstacles for women experts, who are generally evaluated less positively than equally qualified men across a range of fields. While audiences may view women as better equipped to handle certain feminine-stereotyped issues, Role Congruency Theory suggests that expert authority in politics may be incongruent with traditional feminine gender roles, leading to a subsequent backlash. Building upon the latter theory, I hypothesize that when cued to consider the expertise of a news source, the (in)congruence of gender-stereotyped roles will activate gender biases which increase the gap in evaluations and trust of women and men. Using selection experiments, I assess the relationship between domain-relevant expertise and gender biases across a range of gender-stereotyped issues. I find that women experts are rewarded less for additional expertise and punished more severely for a lack of expertise, exacerbating gender-based biases relative to the control. I find that this pattern is consistent across both masculine- and feminine-stereotyped issues, including issues that disproportionately impact women, such as women's health care and the gender wage gap. The addition of competing partisan cues, however, overwhelms the influence of gender. The normative implications suggest women in the media often face an uphill battle to advocate for their interests on key issues that affect them even when they may have more direct relevant experience in addition to their qualifications. [ABSTRACT FROM AUTHOR]

We examine whether the COVID-19 crisis affects women and men differently in terms of employment, working hours, and hourly wages, and whether the effects are demand or supply driven. COVID-19 impacts are studied using administrative data on all Dutch employees up to December 2020, focussing on the national lockdowns and emergency childcare for essential workers in the Netherlands. First, the impact of COVID-19 is much larger for non-essential workers than for essential workers. Although female non-essential workers are more affected than male non-essential workers, on average, women and men are equally affected, because more women than men are essential workers. Second, the impact for partnered essential workers with young children, both men and women, is not larger than for others. Third, single-parent essential workers respond with relatively large reductions in labour supply, suggesting emergency childcare was insufficient for them. Overall, labour demand effects appear larger than labour supply effects. [ABSTRACT FROM AUTHOR]

In this paper, we study a labor market setup in which workers exhibit relative remuneration concerns with respect to their peers. We first characterize the optimal labor contract offered by the firm and provide necessary and sufficient conditions for the desirability of incorporating pay-secrecy clauses in such a contract. We then demonstrate that, in contrast to conventional wisdom viewing wage-secrecy arrangements as detrimental for workers, the latter may, in fact, gain from the lack of pay transparency. [ABSTRACT FROM AUTHOR]

This paper studies how frictions in the acquisition of new customers distort the allocation of activities across heterogeneous producers. We add bilateral search frictions in a Ricardian model of trade and use French firm-to-firm trade data to estimate search frictions faced by French exporters in foreign markets. Estimated coefficients display a strong degree of heterogeneity across countries and products that correlates with various proxies for information frictions. Markets with high estimated frictions are shown to display less dispersion in sales between high- and low-productivity firms, a consequence of the distortive impact of frictions. A counterfactual reduction in the level of search frictions significantly improves the efficiency of the selection process by pushing the least productive exporters out of the market while increasing export sales at the top of the productivity distribution. [ABSTRACT FROM AUTHOR]

We show that newly hired workers earn higher wages in response to higher firm leverage. Consistent with compensating differential models, these higher wages appear to reflect compensation for the risk of earnings losses in the event of financial distress. For tenured workers, increases in leverage are not associated with higher wages. Our findings suggest that the wage costs of debt and optimal capital structure for a firm depend on expected employee turnover, as well as on the firm's future growth and hiring plans. Variation in local labor market conditions also significantly affects the relationship between firm leverage and employee pay. (JEL G32, G33, J21, J31, J61) Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Theories of endogenous economic growth propose that the exchange of information between workers with different knowledge facilitates innovation. In this study, we explore whether occupational gender segregation poses a barrier to endogenous growth by limiting the extent to which women and men workers exchange information, ideas and perspectives. Focusing on technology industries as a sector where information exchange plays a large role, we use error correction models to test for the potential long-term costs of occupational gender segregation on industry growth and productivity across US local labor markets from 2005 through 2019. Results indicate that occupational gender segregation stalls tech growth, while also hindering productivity. Conversely stated, the occupational integration of women and men provides a boon to growth and productivity in local tech sectors. As regions strive to be competitive in the new economy, those fostering collaboration between women and men will be better positioned to succeed. [ABSTRACT FROM AUTHOR]

This study investigates the gender gap present in the relationship between obtaining a college degree and labour earnings in Japan, using a dataset that contains detailed information about the colleges from which the respondents graduated. In particular, we focus on the ranking of colleges as a factor. We find that obtaining a college degree, regardless of the college ranking, is positively correlated with higher earnings even after controlling educational and cultural experiences in childhood, for both men and women, but that this relationship is stronger for men. Moreover, graduating from a high-ranking college is positively and significantly associated with higher earnings for male workers only. Further, the relationship between a high-ranking college degree and women's spousal labour earnings is positive and significant. Thus, opportunities to obtain higher education benefits are most likely connected to the different paths that men and women take to attain economic success. [ABSTRACT FROM AUTHOR]

We empirically assess industry tournament incentives for CEOs, as measured by the compensation gap between a CEO at one firm and the highest-paid CEO among similar (industry, size) firms. We find that firm performance, firm risk, and the riskiness of firm investment and financial policies are positively associated with the external industry pay gap. The industry tournament effects are stronger when industry, firm, and executive characteristics indicate high CEO mobility and a higher probability of the aspirant executive winning. [ABSTRACT FROM AUTHOR]

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, market structure, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial variations in knowledge spillovers lead to spatial concentration of more innovative firms. Migration costs, however, limit the concentration of economic activities in the most productive region. Narrowing the gap in knowledge spillovers across regions raises growth, and reduces regional inequality by making firms more sensitive to wage differentials. The associated change in the industry concentration has positive welfare effects. [ABSTRACT FROM AUTHOR]

We study the results of a massive nationwide correspondence experiment sending more than 83,000 fictitious applications with randomized characteristics to geographically dispersed jobs posted by 108 of the largest U.S. employers. Distinctively Black names reduce the probability of employer contact by 2.1 percentage points relative to distinctively white names. The magnitude of this racial gap in contact rates differs substantially across firms, exhibiting a between-company standard deviation of 1.9 percentage points. Despite an insignificant average gap in contact rates between male and female applicants, we find a between-company standard deviation in gender contact gaps of 2.7 percentage points, revealing that some firms favor male applicants and others favor women. Company-specific racial contact gaps are temporally and spatially persistent, and negatively correlated with firm profitability, federal contractor status, and a measure of recruiting centralization. Discrimination exhibits little geographical dispersion, but two-digit industry explains roughly half of the cross-firm variation in both racial and gender contact gaps. Contact gaps are highly concentrated in particular companies, with firms in the top quintile of racial discrimination responsible for nearly half of lost contacts to Black applicants in the experiment. Controlling false discovery rates to the 5% level, 23 companies are found to discriminate against Black applicants. Our findings establish that discrimination against distinctively Black names is concentrated among a select set of large employers, many of which can be identified with high confidence using large-scale inference methods. [ABSTRACT FROM AUTHOR]

We describe how sexual harassment contributes to sex segregation and pay inequality in the labor market. Combining nationally representative survey data and administrative data, we show that both harassment and wages vary strongly and systematically across workplaces. Women self-report more harassment from colleagues and managers in male-dominated workplaces where wages are relatively high, and men self-report more harassment in female-dominated workplaces where wages are low. These patterns imply two ways that harassment may contribute to gender inequality. First, harassment deters women and men from applying for jobs in workplaces where they are the gender minority. A survey experiment with hypothetical job choices supports this mechanism. Respondents are highly averse to accepting jobs in workplaces with a higher harassment risk for their own gender, but less averse when people of the opposite sex are at higher risk. A second way that harassment contributes to inequality is by making workplace gender minorities leave their workplaces for new jobs. An analysis of workplace transitions supports this mechanism. Women who self-report harassment are more likely to switch to new workplaces with more female colleagues and lower pay. [ABSTRACT FROM AUTHOR]

This article provides a detailed picture of wage differences between atypical and standard workers across the wage distribution. It compares two distinct types of atypical employment, part-time and temporary employment, and examines seven European countries. Using 2016 EU-SILC data, the article presents quantile regression estimates of wage gaps associated with atypical employment across the wage distribution. The results show that wage patterns associated with different types of atypical employment are diverse and complex. Temporary employment is associated with significant wage penalties that decrease but largely remain significant towards the upper end of the wage distribution. In contrast, wage differences between part-time and full-time workers are smaller and range from part-time penalties at lower deciles of the wage distribution to non-significant differences or premiums at the top. These results suggest that different mechanisms may drive wage differences associated with different types of atypical employment. In particular, the article highlights the role of occupation in affecting atypical workers' labour market position and, consequently, wages relative to standard workers. Overall, the significant heterogeneity in atypical employment and its wage consequences calls into question the usefulness of the concept as a unifying category for research. [ABSTRACT FROM AUTHOR]

To what extent has the closing of the gender gap in hourly wages ('gender wage gap'; GWG) in Western Germany stalled due to an increasing supply of non-standard working hours? We use descriptive trend analyses and Juhn–Murphy–Pierce decompositions of German Socio-Economic Panel data for the last 30 years (1985–2014) to analyse the extent to which the expansion of part-time and marginal work, as well as overwork, may have contributed to the dynamics of the GWG in Western Germany. We find that the large increase in part-time work among women in combination with increasing wage gaps between part-time and full-time work substantially widened the GWG (by about one-sixth). Working hour effects were large enough to offset the equalizing effects of declining gender gaps in human capital, and they existed even in the public sector. In contrast to the United States, trends in overwork did not have a meaningful impact on the GWG. In an add-on, we find a widening of the gender gap in monthly earnings, but also an important closing of the gender earnings gap unconditional on employment due to an increased labour supply of women. Our results suggest that working hours should be given more consideration in research on family–work conflict and gender earnings inequalities. [ABSTRACT FROM AUTHOR]

Financial regulators and investors have expressed concerns about high pay inequality within firms. Using a proprietary data set of public and private firms, this paper shows that firms with higher pay inequality--relative wage differentials between top- and bottom-level jobs--are larger and have higher valuations and stronger operating performance. Moreover, firms with higher pay inequality exhibit larger equity returns and greater earnings surprises, suggesting that pay inequality is not fully priced by the market. Our results support the notion that differences in pay inequality across firms are a reflection of differences in managerial talent. [ABSTRACT FROM AUTHOR]

The present study conceptualizes earnings inequality between black and white men as a three-stage dynamic process: the pre-market human capital acquisition, the labor-market entry, and the longitudinal career progression. Based on the Panel Study of Income Dynamics (PSID), this framework is put to an empirical test that leads to two major conclusions. First, overall patterns of black-white earnings inequality are shaped primarily at labor-market entry as opposed to developing within the labor market. Second, the longitudinal progression of earnings inequality exhibits distinctive trajectories across different pre-market groups. Less-educated black men face a wider earnings gap at labor-market entry, but the gap stays relatively stable over time. Highly educated black men face a narrower earnings gap at labor-market entry, but the gap widens over time. I attribute these patterns to the temporal-specific interplays between race and a series of labor-market mechanisms. [ABSTRACT FROM AUTHOR]

Received wisdom suggests that most exporters sell most of their output domestically. We show, however, that the distribution of export intensity varies substantially across countries and is often bimodal, displaying "twin peaks"—that is, large shares of both low- and high-intensity exporters coexisting alongside each other within a country. We reconcile this new stylized fact with an otherwise standard model of trade in which firms face firm-destination-specific revenue shifters that follow a lognormal distribution with sufficiently high dispersion. We structurally estimate the model and show that differences in countries' size relative to the rest of the world can account for most of the observed cross-country variation in the distribution of export intensity in our data. While policies that incentivize firms to export a high share of their output account for a substantial share of the variation in the dispersion of firm-destination revenue shifters, they cannot fully account for the widespread prevalence of twin peaks around the world. [ABSTRACT FROM AUTHOR]

Previous research shows that female managers narrow the gender wage gap (GWG) among workers but does not disentangle two general underlying mechanisms. First, female managers might use their organizational power to change organizational practices and make organizations more gender-equal. Second, female workers might benefit from interacting with a female manager, e.g. through homophily and mentoring. To disentangle these two mechanisms, I distinguish between female managers at the first management level, which is responsible mainly for organizational practices, and at the second management level, which mainly interacts with workers. Additionally, I consider practices enhancing gender equality, such as work-life balance practices. Using German linked employer–employee panel data and a firm fixed-effects regression, I find that female first-level managers slightly narrow the GWG. This influence is not affected by the consideration of organizational practices. Hence, female first-level managers do not affect workers' by changing organizational practices. In contrast, female second-level managers considerably narrow the GWG among workers. In summary, female managers substantially reduce the GWG among workers, and this effect works via the manager–worker interaction mechanism. Hence, increasing the share of female second-level managers might close the GWG. [ABSTRACT FROM AUTHOR]