Cognitive skills and Black–White wages in the United States labor market

Using data from the National Longitudinal Survey of Youth (NLSY), this study analyzes the effects of cognitive skills on the wages of Whites and African Americans in white and blue collar occupations. The results show that cognitive skills, net of education, are important predictors of wages across all occupations. Mathematics skills, in particular contribute to significant wage premiums for workers in white and blue-collar occupations, with the exception of Blacks in blue-collar professions. English skills lead to significant wage premiums only for Blacks in blue-collar occupations. While the incorporation of cognitive skills narrows the Black-White wage gap considerably, the effects of skills on the wages of Blacks and Whites are far from uniform. The results also show that despite using detailed controls for the quality of education, an extra year of schooling yields the highest wage premium for Whites in all occupations.     

Accounting for the permanent vs temporary wage gaps among young adults: Three European countries in perspective

This article analyses wage differentials between permanent and temporary workers in the 25–40 age bracket using the 2010 European Union Statistics on Income and Living Conditions (EU‐SILC) wave data for France, Germany and Italy. Applying a Recentered Influence Function (RIF) regression and a reweighting estimation technique, we investigate the contribution of personal and job characteristics to wage differentials across the wage distribution. Results point to a large unexplained component of the wage gap across the whole distribution in Italy, while this component is weaker in France among highly paid employees and insignificant in Germany. These findings highlight potential policy considerations and areas for future research.     

UNEMPLOYMENT RISK AND COMPENSATING DIFFERENTIALS IN NEW JERSEY MANUFACTURING

We present evidence that low-skill workers received larger compensating differentials than more skilled workers when facing unanticipated unemployment in an era without unemployment insurance. Using information from surveys of New Jersey workers conducted during the 1880s, we test the theory of compensating wage differentials. We find that workers who faced a higher probability of predictable unemployment received compensating differentials and that the size of the differential differed across industries and skill levels. With few firm- or industry-specific skills, unskilled workers were less subject to "informational capture" than skilled workers who had more but less easily transferable human capital. (JEL N31 )     

Intangibles and the Gender Wage Gap: An Analysis of Gender Wage Gaps Across Occupations in the Finnish Private Sector

The paper compares the gender wage differentials of two occupation groups—innovation and non-innovation workers—separately for manufacturing and services using Finnish private-sector data. We apply a decomposition method based on unconditional quantile regression techniques to identify key factors underlying the gender wage gaps observed along the whole wage distribution, as well as changes in these wage gaps between 2002 and 2009. This more nuanced approach provides important new insights. We find conspicuous differences in average gender wage gaps, in gender wage-gap profiles across the wage distribution and also in the evolution of gender wage differentials over time between sectors and occupation groups. Our results imply that sector-specific factors are a more important driving force behind these differences in patterns and trends of gender wage gaps, although occupation-specific factors cannot be totally dismissed. Hence, comparisons of gender wage gaps, including their underlying sources, of innovation and non-innovation workers for too broadly defined segments of the labour market may result in misleading conclusions concerning the factual role of intangible capital.     

MALE MARITAL WAGE DIFFERENTIALS: TRAINING,PERSONAL CHARACTERISTICS,AND FIXED EFFECTS

Using the National Longitudinal Survey of Youth 1979, we replicate previous estimates of the marital wage differential for white men, extend the analysis to African American men, then explain the within and between race differentials. We first control for formal job training, then for cognitive skills, parental background, and self‐esteem with little effect. By contrast, the white differential but not the black differential disappears in fixed‐effects estimation. We reconcile the cross‐section/panel differentials by focusing on the distinct identification conditions employed by each technique. Men who never change marital status play a significant role in white cross‐sectional estimates. (JEL J31, J12)     

REDUCING PUBLIC‐PRIVATE SECTOR PAY DIFFERENTIALS: THE SINGLE SPINE PAY POLICY AS A NATURAL EXPERIMENT IN GHANA

Empirical studies have documented the existence of the public‐private pay differentials in both developed and developing countries. The implementation of policies aiming to reduce this gap has however been mitigated or inconclusive. This paper exploits the Single Spine Pay Policy (SSPP) in Ghana as a natural experiment to examine the effectiveness of wage policies in developing countries. The SSPP was implemented in 2010 by the Government of Ghana to address the public‐private sector wage gap and improve productivity in the public sector. Using a quantile treatment effect approach based on a difference‐in‐difference estimation, we show that the SSPP has yet to reduce the wage gap between the public and private sectors across the entire distribution of earnings in Ghana. The improvement observed is only at the lower tail of the distribution of earnings. However, the SSPP has a larger effect on the earnings of female workers than that of males in the education and health services sectors while male workers have benefited more in the administration sector, suggesting that the policy was successful in reducing the gender wage gap in the education and health services sectors but has widened this gap in the administration sector. Moreover, the SSPP has decreased the productivity of workers across the distribution of earnings, mainly due to a decrease in the effort of female public sector workers in the education and health sectors and male workers in the administration sector. (JEL C31, G15, J24, J31, J45)     

Upgraded to Bad Jobs: Low‐Wage Black Women's Relative Status since 1970

Labor market changes complicate the analysis of black women's status relative to white women because education, occupational attainment, and race–gender are now less predictive of earnings. Low‐wage black women's relative status has improved somewhat from 1970 to 2000, contrary to the well‐documented decrease in relative status reported for all black women wage earners since 1980, but their dramatic occupational upgrading was not responsible for the trend. White‐collar occupational positions formerly responsible for white women's relative earnings advantage no longer deliver that reward, as restructuring has produced a proliferation of bad jobs across occupational groups. This study argues that increasing exposure to precarious work is crucial to understanding changes in low‐wage black women's relative economic status since 1970.     

SOFT SKILLS,HARD SKILLS,AND THE BLACK/WHITE WAGE GAP

This study examines the relative importance of soft skills versus hard skills across occupations and its impact on the observed wage gap between Blacks and Whites in the United States. It posits that the Black/White pay gap may vary across occupations that require the use of different types of skills. We classify occupations into hard‐skill intensive versus soft‐skill intensive jobs using the skill content measures of different occupations from the Occupational Information Network (O*Net). We then use data from the National Longitudinal Survey of Youth (NLSY) and Current Population Survey (CPS) to investigate the impact of job skill type on the wage gap. Consistent with our theoretical predictions, we show that this wage gap in white‐collar jobs is smaller for hard‐skills jobs than it is for soft‐skills jobs. Moreover, we demonstrate that, in response to variations in the wage gap across different occupations, Blacks are more likely to self‐select themselves into hard‐skills jobs, ceteris paribus. This shows not only that discrimination against Blacks varies across occupations, but also that such discrimination induces the self‐selection of Blacks into certain occupations. Moreover, this finding highlights the role played by co‐worker/customer discrimination in explaining the racial wage gap in the U.S. labor market. (JEL J15, J31)     

Work and mental health: the experience of the Quebec workforce between 1987 and 1998

This study examines the distribution of psychological distress in twelve occupational groups over the decade 1987-1998 in the Quebec workforce. Cross-sectional data from the three phases of the Quebec Health and Social Survey are used with n = 9,450 in 1987, n = 10,947 in 1992 and n = 10,960 in 1998, totalling 31,357 workers aged 15 and over. Occupations are classified according to the Canadian Socio-economic Classification of Occupations. Prevalence estimates for occupational groups are computed and logistic regression analyses are conducted controlling for gender, age and marital status. The results show that the prevalence of workers with psychological distress increased sharply between 1987 and 1992 and declined back in 1998 but still increased compared to 1987. However, only non-qualified white collars, semi-qualified blue collars and male non-qualified blue collars show a significant increment in psychological distress over time. Analysis of the differentials in the prevalence of psychological distress gives greater odds of distress for supervisors, semi-qualified white and blue collar workers compared to upper managers. The odds for occupations are stable over time, gender, age and marital status. The odds of female workers significantly decreased in the three phases. It appears that the restructuring of the work environment and the perturbations in the larger society promoted an increase of psychological distress within definite segments of the workforce. The specific contribution of occupation is limited but supervisors and occupations requiring lower qualifications are more at risk regarding mental health at work.     

Reconfiguring Worker Subjectivity: Career Advice Literature and the “Branding” of the Worker's Self

Career advice literature, commonly used by many job seekers, has increasingly exhibited an emphasis on “personal branding,” an economic discourse that invites workers to conceive of themselves as profit‐generating enterprises. In this article, we examine the meanings that personal branding provokes in the minds of precariously employed white‐collar workers in Boston. We use interviews conducted with 62 white‐collar workers and job seekers to explore the utility of Foucauldian theories of governmentality, which have received little attention within American sociology. Results suggest that precariously employed workers do feel pressured to incorporate personal branding into their orientations toward both self and work, much as Foucauldian theory expects. Yet our findings also identify important exceptions to this pattern, with smaller proportions of workers engaging in outward accommodation of self‐branding discourse, or else explicit contestation of its terms. We conclude that Foucauldian theories of the “enterprising self” warrant more widespread consideration among American sociologists, hopefully opening up a stronger understanding of counterconduct, one of the theory's notable blind spots to date.     

Interfirm wage differentials in a local labor market: The case of the fast-food industry

We examine interfirm wage differentials among fast-food restaurants in Atlanta, Georgia to determine the degree to which these differentials correspond to the predictions of competitive theory. While no definitive test is possible, given our inability to control all sources of wage variation, the evidence nevertheless suggests that the wage structure is largely shaped by competitive forces, albeit in a relatively complex manner due to differences in a host of factors that the simple version of the theory holds constant. Evidence is also found, on the other hand, that the supply curve of labor to the individual firm slopes upward for experienced workers and that a small noncompensating wage differential may exist that is related to variation in each restaurant's ability to pay.     

Comparative advantage and the welfare effects of uniform wage policies

This paper analyzes the theoretical impact of a commonly cited union goal — the elimination or reduction of wage differentials within occupations. By dropping the usual assumption of homogeneous labor, we show how, and under what market conditions, workers will receive rents due to individual comparative advantage. In competitive labor markets a union-imposed uniform wage may lower the earnings of workers holding a productive advantage, causing a reduction in employment and a welfare loss of comparative advantage rents. The implications of a strict uniform wage rule imply that unions may be forced to adapt their wage policy to allow more productive workers to receive wage differentials. This consideration helps explain some common trade union institutions.     

The gender pay gap at labour market entrance: Evidence from Germany

The authors investigate wage differentials between German male and female graduates at labour market entrance at all percentiles of the wage distribution. The wage differentials are decomposed using the single‐index approach suggested by DiNardo, Fortin and Lemieux (1996) and Fortin and Lemieux (1998), and by endowment, price and returns‐to‐skill function effects. The results reveal higher starting salaries for men at all percentiles of the income distribution, with the pay gap varying in magnitude. The endowment and price effects are favourable for men throughout. The effect of the difference in the returns‐to‐skill function works in favour of female graduates.     

The Immigrant Wage Gap in Germany: Are East Europeans Worse Off?

Using employment register data, this study compares the outcomes of male foreign workers from different East and West European countries who entered the German labor market between 1995 and 2000 with those of male German workers. Although the wage differentials are highest for Poles, results from Oaxaca/Blinder type decompositions show that the East Europeans are not generally worse off. Actually, we find considerable heterogeneity also within nationality groups. Quantile decompositions show that coefficients effects tend to be larger at the bottom of the wage distribution and, by that, give evidence for sticky floors.     

Do Truly Comparable Public and Private Sector Workers Show Any Compensation Differential?

Using data from the Health and Retirement Study, we apply propensity score matching methods to examine evidence on the rent paid to public sector workers in the United States. Traditionally, wage differentials are computed assuming that workers from both public and private sectors are comparable, without actually controlling for the comparability of the units. Using this method, we are able to control for selection bias and, at the same time, select a subsample of comparable workers in terms of their conditional probability of choosing to work in the public sector on which to estimate separate wage equations.     

BB see: Transparency legislation and public discussions of wage inequality

Disparities in compensation persist between men and women. Wage transparency, which enables workers to compare their compensation to what others receive in their organization, can be an important tool for redressing specific intra‐firm disparities tied to discriminatory processes. Drawing on newspaper reports about gender pay differentials, we provide the first analysis of whether a public disclosure of pay transparency corresponds to a shift in broader public discourse, as represented by news coverage. Thematic analysis of newspaper coverage of the gender pay gap in Britain before and after the high‐profile release of BBC wage data in 2017 reveals a shift from choice‐based explanations to those emphasizing structural inequality and discrimination. The findings suggest that wage transparency coupled with news media attention may not only identify inequitable pay in firms, but also work more broadly to create space to discuss discriminatory practices and redress for pay disparities.     

Service outsourcing and labour mobility in a digital age: transnational linkages between Japan and Dalian,China

In this article, I examine the transnational mobility of digital workers and the control of their labour across multiple production sites. The digitalization of work has progressively allowed businesses to outsource IT‐enabled service jobs to cheaper production sites offshore. The growth of the ‘offshore outsourcing' of white‐collar service jobs in East Asia has produced the mobility of cheap digital labour from Japan to Dalian in northeast China. They work at call centres and other Japanese‐speaking workplaces in the lower echelons of the city's IT sector, typically earning salaries in Chinese yuan at, or even below, the average Japanese minimum wage. Based on ethnographic findings, I argue that in the global digital economy, digital services are rendered exploitable through their transnational mobility and that this form of labour migration has developed because of the partial, fluid and contingent nature of the transnational links between the two locations. I analyse how the neoliberal logic of exception underpins the creation of IT parks in China and the casualization of labour in Japan to enable new forms of transnational labour control and capital accumulation.     

Is there a wage cost for employees in family‐friendly workplaces? The effect of different employer policies

This article assesses the wage impact of different family‐friendly employer policies: in‐kind or in‐cash child‐related benefits and flexible work schedule arrangements. We use French matched employee–employer data with a rich set of indicators of family‐friendly benefits, and we pay attention to the possible endogeneity of worker–employer matching. Our results show that the provision of in‐cash or in‐kind benefits is associated with higher wages for women, while flexible work schedules have no significant effect on wages. Our results lead us to reject the hypothesis of compensating wage differentials: women do not appear to face a trade‐off between wages and a better work–life balance. Our findings are more in line with the enhancing productivity theory: in‐kind benefits reduce the time devoted to household activities and alleviate conflict between professional life and family life, thereby improving women's work effort and productivity. This is not the case for flexible work arrangements, which may be perceived as negatively related to workers’ commitment to their job.     

A hierarchical theory of occupational segregation and wage discrimination

Becker's model of discrimination is extended to the case where men exhibit distastes for working under female managers. The distribution of women in the resulting occupational hierarchy depends on the number of women in lower occupations, the wages of male workers in lower occupations, and male distastes for female management. Thus, there exists an occupational sorting function, related to wages, that determines the occupational distribution of women. We integrate this sorting function into a standard wage equation to derive a new decomposition of male-female wage differentials and apply it to a sample of insurance industry workers from the 1988 CPS.