In this article we consider the question of discrimination against black workers and female workers. We do not discuss the issue of discrimination as it applies within the ranks…
Abstract
In this article we consider the question of discrimination against black workers and female workers. We do not discuss the issue of discrimination as it applies within the ranks of white males. Analysis of the relationship between earnings and schooling would suggest that discrimination against this latter group mainly takes the form of unequal opportunity in the acquisition of schooling—that is, it occurs prior to labour market entry rather than within the market. Our focus upon blacks and female workers may be justified on the grounds that discrimination against such groups is said to be considerably more widespread. Our analysis is also restricted, for reasons of space, to a consideration of differences in earnings and occupations, omitting questions of unemployment.
John G. Sessions and Nikolaos Theodoropoulos
Efficiency wage theory predicts that firms can induce worker effort by the carrot of high wages and/or the stick of monitoring worker performance. Another option available to…
Abstract
Efficiency wage theory predicts that firms can induce worker effort by the carrot of high wages and/or the stick of monitoring worker performance. Another option available to firms is to tilt the remuneration package over time such that the lure of high future earnings acts as a deterrent to current shirking. On the assumption that firms strive for the optimal trade-off between these various instruments, we develop a two-period model of efficiency wages in which increased monitoring attenuates the gradient of the wage-tenure profile. Our empirical analysis, using two cross sections of matched employer-employee British data, provides robust support for this prediction.
Details
Keywords
Kirsten Daniel and W.S Siebert
The study analyses production worker hiring standards based on time series personnel records drawn from matched plants in the U.S., U.K., Italy, the Netherlands and Belgium. Our…
Abstract
The study analyses production worker hiring standards based on time series personnel records drawn from matched plants in the U.S., U.K., Italy, the Netherlands and Belgium. Our hypothesis is that labor market regulation pushes upwards hiring standards for production workers. Labor market regulation is measured both by an employment protection index, and by workforce average tenure as a proxy for insider power. We find that the average tenure variable gives more robust results than the index. Its effect is to increase education standards, but to reduce starting age standards. The expected positive effect of employment protection on hiring standards is found in simple regressions, but is not generally supported by the multivariate analysis once other influences are held constant. However, union density is found to increase hiring standards, and might take over the effect of employment protection as an indicator of overall regulatory pressure. We also find a strong substitutability between recruits’ prior experience and education. This substitutability indicates the power of education to widen job opportunities for inexperienced workers.
Carolina Castagnetti, Luisa Rosti and Marina Töpfer
This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach…
Abstract
This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach for model selection, we use a machine-learning approach (post double robust Least Absolute Shrinkage Operator [LASSO]). This approach allows us to reduce Omitted Variable Bias (OVB), given data restrictions, and to obtain a robust estimate of the conditional age pay gap. We then decompose the conditional gap and analyze the impact of four further potential sources of heterogeneity (workers', sectors', and occupations' permanent heterogeneity as well as sample selection bias). The results suggest that age discrimination in pay is only perceived but not real in Italy for both men and women.
Details
Keywords
Shoshana Neuman and Jacob Weisberg
The purpose of this paper is to investigate wage differentials and wage discrimination among 9,035 male and female Israeli managers. In our sample, female managers earn on average…
Abstract
The purpose of this paper is to investigate wage differentials and wage discrimination among 9,035 male and female Israeli managers. In our sample, female managers earn on average 64 per cent of their male counterparts. Using a statistical method originally developed by Ronald Oaxaca, we found that out of 36 per cent wage difference, 7.2 per cent were “legitimate”, stemming from differences in human capital characteristics, while 28.8 per cent were “illegitimate”, due to wage discrimination, in the form of different rates of return to the various characteristics. As wage differentials stem mainly from discrimination, affirmative action and comparable worth can serve as a partial remedy.
Details
Keywords
It is well-known that the majority of women work in a limited number of occupations characterized by a proportionately high number of female workers. Moreover, workers in these…
Abstract
It is well-known that the majority of women work in a limited number of occupations characterized by a proportionately high number of female workers. Moreover, workers in these female-dominated (FD) occupations earn less, on average, than workers in traditionally male or integrated occupations (McPherson & Hirsch, 1995). This occupational wage differential is widely accepted as a partial explanation for the pervasive gender wage-differential. However, it is unclear why an individual would enter into a FD occupation if the wages are lower than in nonfemale-dominated (NFD) occupations. It is also unclear if women who choose FD occupations could earn more in occupations that are NFD. Therefore, attributing a portion of the gender wage differential to occupational differences may be incorrect. Indeed, differences in the occupational choices of men and women will only explain the wage differential between genders if females in FD occupations could expect to earn higher wages elsewhere.
The classical insider‐outsider theory explains involuntary unemployment by the bargaining power of insiders that prevents wages decreasing to the level of the reservation wages of…
Abstract
The classical insider‐outsider theory explains involuntary unemployment by the bargaining power of insiders that prevents wages decreasing to the level of the reservation wages of unemployed outsiders. Extends the traditional argument about wages to a conflict of interest between insiders and outsiders about the schedule of working time. Argues that attempts to liberalize shopping hours often fail because of the resistance and arguments of retail sector employees (insiders) who fear that this would cause deterioration in their working conditions. This resistance leads to a reduction of employment possibilities for outsiders who would have been willing to work during fringe hours.
Details
Keywords
Wieteke S. Conen, Hendrik P. van Dalen and Kène Henkens
The purpose of this paper is to examine employers’ perceptions of changes in the labour cost‐productivity gap due to the ageing of the workforce, the effects of tenure wages and…
Abstract
Purpose
The purpose of this paper is to examine employers’ perceptions of changes in the labour cost‐productivity gap due to the ageing of the workforce, the effects of tenure wages and employment protection on the perceived gap, and whether a perceived labour cost‐productivity gap affects employers’ recruitment and retention behaviour towards older workers.
Design/methodology/approach
The authors analyse surveys administered to employers in Denmark, France, Germany, Italy, the Netherlands, Poland and Sweden.
Findings
Approximately half of employers associate the ageing of the personnel with a growing gap between labour costs and productivity. Both the presence of tenure wages and employment protection rules increase the probability of employers perceiving a widening labour cost‐productivity gap due to the ageing of their workforce. A counterfactual shows that even when employment protection and tenure wage systems are abolished, 40 percent of employers expect a net cost increase. The expected labour cost‐productivity gap negatively affects both recruitment and retention of older workers.
Originality/value
In this paper, the wage‐productivity gap is examined through the perceptions of employers using an international comparative survey.
Details
Keywords
Wieteke S. Conen, Kène Henkens and Joop Schippers
Although policymakers have put great efforts into the promotion of older workers’ labour force participation, quantitative empirical knowledge about employers’ views towards…
Abstract
Purpose
Although policymakers have put great efforts into the promotion of older workers’ labour force participation, quantitative empirical knowledge about employers’ views towards extension of working lives is limited. The purpose of this paper is to improve the understanding of employers’ attitudes and actions towards extension of working lives, by examining recruitment and retention behaviour towards older workers, employers’ views on the consequences of an ageing workforce, organisational policies, and what governments can do to extend working lives.
Design/methodology/approach
The authors analyse surveys administered to employers in Denmark, France, Germany, Italy, The Netherlands, Poland, Sweden and the UK in 2009.
Findings
It is found that a minority of employers have applied measures to recruit or retain older workers, and employers rather retain than hire older workers. A considerable share of employers, albeit to different degrees per country, associate the ageing of their staff with a growing gap between labour costs and productivity. Employers expecting a larger gap do not apply more organisational measures to either increase productivity or adjust the cost‐productivity balance. Employers may think the cost‐productivity issue is partly for governments to solve; employers expecting a larger cost‐productivity gap consider wage subsidies to be an effective measure to extend working lives.
Originality/value
The paper addresses the employers’ perspective, one that is often neglected compared to attitudes and behaviour of older workers themselves and research on institutional arrangements. This paper is also among the first to report on employers’ policies and practices from a cross‐national perspective.
Details
Keywords
James W. Hesford, Mary A. Malina and Mina Pizzini
We investigate outcomes associated with the turnover of unskilled workers, isolating its effects on revenue, cost, and profit. Little attention from researchers has been given to…
Abstract
Purpose
We investigate outcomes associated with the turnover of unskilled workers, isolating its effects on revenue, cost, and profit. Little attention from researchers has been given to unskilled workers, a significant portion of the workforce.
Methodology/approach
This study investigates the relation between turnover among unskilled workers and financial performance using data from 527 hotels owned by the same lodging chain. The workers in our sample are full-time housekeepers and front desk attendants.
Findings
We find that the relation between turnover and performance differs by turnover type (voluntary vs. involuntary) and category of unskilled worker, reiterating the need to differentiate between turnover type and the importance of context in studying turnover. We challenge the assumption that voluntary turnover is categorically harmful and our results for front desk attendants support the view that organizations choose turnover levels that maximize performance. We also provide new evidence on the effects of involuntary turnover. Contrary to the established notion that dismissing less able employees should improve performance, we find that involuntary turnover has negative consequences.
Research limitations/implications
Our results demonstrate the importance of distinguishing voluntary turnover from involuntary turnover and the need to include both in models predicting turnover’s performance effects.