Antonio Caparrós Ruiz, Lucía Navarro Gómez and Mario Rueda Narváez
One of the major contributions of the literature on human capital has been to demonstrate the role of schooling as a determinant of wages. However, the exact size of the effect on…
Abstract
Purpose
One of the major contributions of the literature on human capital has been to demonstrate the role of schooling as a determinant of wages. However, the exact size of the effect on wages and how it should be estimated remain a source of both theoretical and empirical debate. This paper seeks to provide empirical evidence on the returns to education for the Spanish labor market.
Design/methodology/approach
The paper uses the instrumental variable approach proposed by Hausman and Taylor to assess the direction and size of the bias that affects standard OLS estimation, when some of the wage determinants are endogenous.
Findings
The results suggest that the returns to schooling are substantially higher once endogeneity is taken into account, rising from around 6 percent for each additional year of schooling to about 12 percent when the effect is estimated via instrumental variables. This is in line with research for other countries. Evidence is also found of endogeneity in the effect of job seniority, although in the opposite direction. That is, the Hausman and Taylor model finds little effect of seniority on wages, whereas OLS estimates suggest a larger effect.
Research limitations/implications
Further research is needed to reconcile these results (downwards bias in the OLS estimate of the returns to schooling) with the theoretical notion of an upwards bias caused by the correlation between unobservable ability, wages and schooling.
Originality/value
The paper adds new evidence on wage determinants for the Spanish labor market and does so for men and women using alternative estimation procedures.
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Lucía Navarro-Gómez and Mario F. Rueda-Narvaez
The purpose of this paper is to provide empirical evidence on gender wage discrimination and how it is distributed among women in the Spanish labour market, where female…
Abstract
Purpose
The purpose of this paper is to provide empirical evidence on gender wage discrimination and how it is distributed among women in the Spanish labour market, where female participation has been rising for decades. The empirical approach aims to assess to which extent discrimination is evenly distributed or not among women, and how different subgroups of workers are affected by it.
Design/methodology/approach
Using data from the Spanish section of the European Community Household Panel (1994-2001) the authors estimate earnings equations for men and women using the instrumental variable (IV) method proposed by Hausman and Taylor (1981). This aims to avoid biases resulting from endogeneity of regressors. Building on these results, the authors follow the proposal of Jenkins (1994) and estimate a bivariate wage distribution for women, containing individual expected earnings with and without discrimination.
Findings
The results show that discrimination is distributed unevenly across female workers and that the degree to which women are discriminated against grows as they move upward in the wage distribution. Also, when wage determinants are allowed to be endogenous, the results experience drastic changes, both in average and distributional terms.
Research limitations/implications
The results point to a “glass ceiling” operating on female earnings and also show that endogeneity of human capital should be taken into account when analysing discrimination. Therefore, more empirical evidence in this line would be welcome.
Originality/value
By using IV estimation of wages, the authors control for the existence of endogeneity in earnings equations. Also, the authors provide unexplained wage differentials for particular groups of female wage earners, specially according to education, experience and job tenure.
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Antonio Caparrós Ruiz, María Lucía Navarro Gómez and Mario Federico Rueda Narváez
Equal treatment for men and women is an important objective of labour policy in the European Union, largely because there is ample evidence of gender discrimination in the wages…
Abstract
Equal treatment for men and women is an important objective of labour policy in the European Union, largely because there is ample evidence of gender discrimination in the wages of men and women, which are on an average higher for male workers. Research on male‐female wage differentials provides evidence of a substantial wage differential favouring men after adjusting for human capital and personal characteristics such as education, age, job tenure, and labour force intermittency. However, few studies take into account the role that job mobility plays in this differential, despite its demonstrated importance in explaining the earnings profile of workers. This paper estimates gender wage differentials for workers who switch jobs and those who keep them in order to see whether job mobility enlarges or reduces the gender gap. The study uses microdata relative to Spanish workers gathered from the Households Panel Study (1994‐1997), conducted by the Spanish National Statistics Institute.
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Danièle Meulders, Robert Plasman and François Rycx
Introduces a collection of papers originally presented at the 79th Applied Econometrics Association Conference which was organised with the specific aim of stimulating discussion…
Abstract
Introduces a collection of papers originally presented at the 79th Applied Econometrics Association Conference which was organised with the specific aim of stimulating discussion on the “econometrics of wages”. Topics of particular focus include gender wage gaps and wage discrimination. The papers provide insight into the magnitude and sources of gender, racial and sexual orientation earnings inequalities.
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Miguel Andrés Sarmiento Tito, Paola Fernanda Vintimilla, Paulina Alejandra Echeverría Paredes, Byron Alejandro Quirola Campoverde and Silvia Alexandra Peña Gonzalez
The primary aim of this study is to create a comprehensive model quantifying the maturity levels of key determinants crucial for the sustained success of public sector…
Abstract
Purpose
The primary aim of this study is to create a comprehensive model quantifying the maturity levels of key determinants crucial for the sustained success of public sector entrepreneurship (PSE) [social entrepreneurship (SE)]. By integrating social, organizational and technological elements with Max-Neef's human needs, the model offers a holistic perspective for SE measurement. Notably, it emphasizes Max-Neef's existential needs (being, having, doing, interacting) to analyze variables crucial for sustainability, from diverse perspectives within SE.
Design/methodology/approach
This study presents a quantitative approach to develop a maturity model for assessing SE based on Max-Neef's human needs. The model integrates social, organizational and technological dimensions, using K-means algorithm for data processing. A panel of experts assigns weights to variables, and the maturity levels are adapted from the Capability Maturity Model. Data from 47 SEs in Ecuador's Zone 6 inform model construction, validated with two textile sector SEs. The methodology comprises three stages: variable selection, model construction and nonprobabilistic sample validation in Zone 6.
Findings
The research yields a maturity model enabling the quantification of PSE entrepreneurship maturity over time. It incorporates social, organizational and technological variables with Max-Neef's human needs, providing a broader perspective for SE evaluation. The model allows assessing the maturity level of each determinant, performance per variable in a Likert Scale, and facilitates comparisons between individual entrepreneurship and the overall population or sample. Visualization is enhanced through a color scale based on the Capability Maturity Model.
Research limitations/implications
Limitations may stem from the nonprobabilistic convenience sample used for validation, potentially affecting the generalizability of findings. The model's application is specific to Zone 6 of Ecuador and may require adjustments for broader contexts. Although the K-means algorithm aids data processing, its limitations should be considered. Future research could explore the model's applicability in diverse geographical and sectoral settings for a more comprehensive understanding.
Practical implications
This research has led to the development of a model that quantifies the maturity level of key determinants crucial for the long-term sustainability of PSE. This model integrates elements from social, organizational and technological dimensions, offering a comprehensive framework for assessing SE.
Social implications
This model offers valuable insights for the development and sustainability of social entrepreneurship by providing a structured approach to measure and enhance key social, organizational and technological determinants. By integrating Max-Neef's framework of human needs, the model helps social enterprises better align their efforts with fundamental human needs, ensuring that initiatives not only address societal challenges effectively but also contribute to long-term social well-being. This approach encourages the development of more resilient and impactful social enterprises that are capable of adapting to diverse socioeconomic contexts.
Originality/value
The model's uniqueness lies in its integration of social, organizational and technological variables with Max-Neef's human needs, offering a nuanced assessment of PSE entrepreneurship determinant factors from a human perspective. By applying existential needs (being, having, doing, interacting) as analysis levels, the model provides a distinctive and insightful approach to evaluating the impact of key variables. Its value lies in identifying strengths and weaknesses in each entrepreneurship, guiding support strategies and informing discussions for constructing effective public policies.