Industry studies suggest that since 1945 there have been bothcontractions and expansions in the earnings differentials of skilled andsemi‐skilled workers. Unpublished data from…
Abstract
Industry studies suggest that since 1945 there have been both contractions and expansions in the earnings differentials of skilled and semi‐skilled workers. Unpublished data from the New Earnings Survey for Britain enables further detailed study of these differentials to be made. Changes in the distribution of employment were a less significant contributor to changes in male earnings differentials than were changes in differentials which took place within each industry. For females it is shown that similar differential narrowing took place but changes in the rankings of industries by pay level were also influential.
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IT is fitting that a new series of this magazine should be introduced by some reflections on the whole question of book selection, both for the general public and libraries.
This article examines the incidence and determinants of payment‐by‐results systems in Britain. Data at the establishment level are used to estimate a probit model which identifies…
Abstract
This article examines the incidence and determinants of payment‐by‐results systems in Britain. Data at the establishment level are used to estimate a probit model which identifies those structural characteristics that impact on the choice of payment system for manual workers.
The research conducts an investigation into incomes policy and non‐compliance and suggests that there is considerable evidence to support an economic model of non‐compliance.
Abstract
The research conducts an investigation into incomes policy and non‐compliance and suggests that there is considerable evidence to support an economic model of non‐compliance.
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Robert Elliott, Daniel Kopasker and Diane Skåtun
Distinguishing what employers in different areas of Great Britain need to pay to attract and retain labour has been a central component of public-sector resource allocation…
Abstract
Purpose
Distinguishing what employers in different areas of Great Britain need to pay to attract and retain labour has been a central component of public-sector resource allocation decisions. This paper examines how changes in the pattern of spatial wage differentials following the global financial crisis have impacted on the formulae which allocate government funding to local government and health providers in the NHS.
Design/methodology/approach
Using employer-reported data on earnings, we examine spatial patterns of private-sector wages in Great Britain between 2007 and 2017. The method permits the analysis of finely defined geographical areas and controls for differences in industry and workforce composition to distinguish those differences that are attributable from unmeasured characteristics, such as differences between areas in the cost of living and amenities. These standardised spatial wage differentials (SSWDs) underpin the funding allocation formulae.
Findings
The analysis shows that since 2007 private-sector wage dispersion, both within and between regions, has reduced: lower paid areas have experienced a relative increase in wages and higher paid a relative decline. Over the period, there was a significant reduction in the London wage premium.
Originality/value
This paper demonstrates the importance of ensuring established policies are applied using contemporary data. The SSWDs used to distribute government funds have not been re-estimated for some time. As a result, the current resource allocation model has overcompensated the London region and undercompensated others during this period.
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Shumaila Riaz and Muhammad Zahir Faridi
Segmentation theory argues that the labor market is composed of a variety of non-competing segments between which rewards to human capital are determined by institutional…
Abstract
Purpose
Segmentation theory argues that the labor market is composed of a variety of non-competing segments between which rewards to human capital are determined by institutional structures. This paper presents new evidence on sector-wise earning differential for both male and female samples to assess the implications of segmentation theory.
Design/methodology/approach
Primary data is collected through simple random sampling technique with a survey questionnaire from 954 employed individuals of Southern Punjab, the less developed region of Pakistan. OAXACA decomposition technique is adopted to estimate earning differential.
Findings
Empirical estimates of OAXACA decomposition reveal that the extent of discrimination between public and private sector is greater in case of females than in male samples. Education and region are crucial factors behind sector-wise earning differential for both male and female samples. Job characteristics are more valued than occupation to explain sector-wise earning differential. Occupation largely contributes to explain public–private sector earning differential in male sample than in female sample. Moreover, job security is highly valued by females than males.
Originality/value
Segmentation of the institutional structure in a developing economy is empirically verified by using primary data due to non-availability of data on some variables from secondary data sources. This study attempts to explore the key factors of public–private sector wage differential for male and female samples separately due to the differences in their preferences for work and earning functions.
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P.B. Beaumont, A.W.J. Thomson and M.B. Gregory
I. INTRODUCTION In this monograph we point out and analyse various dimensions of bargaining structure, which we define broadly as the institutional configuration within which…
Abstract
I. INTRODUCTION In this monograph we point out and analyse various dimensions of bargaining structure, which we define broadly as the institutional configuration within which bargaining takes place, and attempt to provide some guidelines for management action. We look at the development, theory, and present framework of bargaining structure in Britain and then examine it in terms of choices: multi‐employer versus single employer, company versus plant level bargaining, and the various public policy issues involved.
Paolo Ghinetti and Claudio Lucifora
The authors aim to investigate public‐private pay determination using French, British and Italian micro data from the 2001 ECHP (European Community Household Panel) and estimate…
Abstract
Purpose
The authors aim to investigate public‐private pay determination using French, British and Italian micro data from the 2001 ECHP (European Community Household Panel) and estimate public/private wage differentials by country. By focussing on different countries, they exploit institutional differences to gain insights on the process of pay formation.
Design/methodology/approach
The authors use regression techniques to compute the pay premium both at the average and at different education/skill levels. They then decompose the observed differences into a part due to characteristics and another part due to different returns between sectors, also at different quantiles of the wage distributions within skills.
Findings
Even after controlling for observable characteristics, the authors find an overall positive wage differential for public sector workers in each of the three countries. As expected, the differential varies by skill. In general, the present findings do not fully support the view that the public (private) sector pays more (less) among the low skilled than the private (public) sector, and that the opposite is true for the highly skilled. The authors also document that the public pay premium varies as one moves up or down in the skill distribution.
Practical implications
On the one hand, the authors’ results confirm that the public sector acts in general as a “fair employer”, compressing pay dispersion with respect to the private sector. On the other hand, the interactions of public and private labour market institutional arrangements play a crucial role in shaping the structure of relative wages across sectors. For example, when the monopsony power in wage bargaining is relevant in both sectors as, for example, in Britain, the private sector pays in absolute value proportionally less, and also the public wage premium is smaller.
Originality/value
This is the first attempt to use comparable data for three countries to analyse public/private wage differences by skill levels and to link the evidence with differences in public/private wage setting regimes.