EMPLOYER RECRUITMENT STRATEGIES AND THE LABOR MARKET OUTCOMES OF NEW HIRES

The results in this article suggest, among other things, a strong association between recruitment choices and starting wages. The theoretical framework motivating the empirical analysis is a wage‐posting game in which firms make wage offers and choose recruitment strategies while recognizing a trade‐off between hiring speed and match quality. Introducing this theoretical framework to the recruitment literature, I present new evidence on employers' choices of recruitment methods to answer the questions “How do employer recruitment choices vary by firm and vacancy characteristics and the skill requirements of jobs?” and “How do vacancy duration and starting wages vary with recruitment choices?”(JEL MS1)     

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.     

Der Einfluss der beruflichen Geschlechtersegregation auf den „Gender Pay Gap“

Occupational sex segregation is generally seen as an important determinant for the gender specific wage differential (“gender pay gap”). Therefore, the present study examines factors explaining wage penalties in typical women’s occupations in Germany. Dealing with sociological and social psychological status theories it is assumed that women’s occupations are paid less because of typical feminine work content that is devalued on the labor market—whereas typical masculine work content dominating in men’s occupations is monetary highly valued. Hypotheses are tested with data from the German Socio-Economic Panel Study (SOEP) 2000–2010 applying linear fixed effects models. Occupational characteristics, like gendered work content, are merged from the BIBB/BAuA-Erwerbstätigenbefragung (Employment Survey) 2005/2006 and the Microcensus to the SOEP. The analysis reveals the mediating effect of gendered work content on wage penalties in gross hourly wages for employees in women’s occupations—but only for men. This gender specific effect is explained with different expectations for competence and effort concerning gendered work content with which women and men are confronted. Lower norms for overwork in women’s occupations partly explain wage penalties in those occupations especially for women. Finally, an Oaxaca/Blinder decomposition shows that gendered work content explains the “gender pay gap” significantly.     

In pursuit of a living wage: The ethical and economic thought of father John A. Ryan from the late 1890s until the new deal

Abstract

Father Ryan frequently cited Pope Leo XIII's major encyclical, Rerum novarum (On the Condition of Labor) to lend the support of traditional Catholic social teaching to social and labor reform. Advocating “sane individualism,” Ryan was the first American to argue convincingly that employers were bound in strict justice to pay employees at least a living wage, and his ethical influence gained wide appeal due to his conservative yet fair‐minded approach to distributive justice. Ryan supported labor unions and economic planning as means to gain fair wages and stock ownership for all workers and emphasized income redistribution to reduce depressionary underconsumption.     

Voluntary contributions and wages in nonprofit organizations

Voluntary work provides a major source of labor for many nonprofit organizations. Consequences of volunteers and paid staff working alongside each other in nonprofits are well documented. This article contributes to this strand of literature and investigates whether the presence of volunteer work influences paid employees' wages in nonprofit organizations. We estimated a multilevel wage equation accounting for personal characteristics of workers and characteristics of nonprofits. The analysis revealed that nonprofit organizations engaging volunteers pay lower wages to their employees. Our findings contribute to the understanding of wage‐setting behavior of nonprofits and improve the methodological approach of empirical research in this field.     

The Within‐Job Motherhood Wage Penalty in Norway, 1979–1996

The motherhood wage penalty is a substantial obstacle to progress in gender equality at work. Using matched employer–employee data from Norway (1979–1996, N = 236,857 individuals, N = 1,027,462 individual‐years), a country with public policies that promote combining family and career, we investigate (a) whether the penalty arises from differential pay by employers or from the sorting of employees on occupations and establishments and (b) changes in the penalties during a period with major changes in family policies. We find that (a) the penalty to motherhood was mostly due to sorting on occupations and occupation‐establishment units (mothers and nonmothers working in the same occupation and establishment received similar pay), and (b) the wage penalties to motherhood declined substantially over the 18‐year period.     

Visualising Gender Wage Differences in the European Union

The purpose of this article is to illustrate differences in the gender wage gap in 13 EU member states, using figures taken from the Household Panel for 2000. The methodology is based primarily on the kernel density functions of men's and women's wages. A range of situations can be observed from the Mediterranean countries (with a smaller gender pay gap) to the very specific cases of Austria and the UK and to northern European countries where the gender pay gap is chiefly the result of a larger proportion of men at higher‐paid levels. We also offer conclusions on the relevance of public employment, part‐time employment and short‐term hiring to explain the gender wage gap in each of the countries studied.     

Individual and Organizational Determinants of Wage Disparities in Israel's Local Authorities

Abstract

In this study I compare hypotheses derived from a resource-based view of management with those based on an institutional perspective to test whether wage levels in local authorities are more likely to reflect technical or allocative efficiency measures, the former deriving from “autonomous” revenues from private sources, the latter from policy-based allocation of resources. A focus on wage variations for 5,033 employees from 83 local authorities shows that the level of autonomous revenues lowers the wages for women and Arab employees but not for men and Jewish employees. The results suggest that local authorities use a differential wage allocation, probably indicating increased access to privatized and outsourced employee recruitment. Moreover, the results show that equal opportunity notions, presumably inherent in social policy guidelines, do not ensure interorganizational homogeneity in wages: metropolitan and larger local authorities are more likely to use technical than institutional measures of organizational success. I conclude that neoinstitutional hypotheses that focus both on the competitive and institutional aspects of governance are differentially applied in regard to wages.     

The Effects of Prevailing Wage Laws: A Comparison of Individual Workers'' Wages Earned on and off Prevailing Wage Construction Projects

I evaluate the effects of prevailing wage laws using a unique data set that shows the wages paid to workers on prevailing wage projects and the wages paid to the same workers during the same time period for work on projects not covered by prevailing wage regulations. The wage comparison shows that workers are generally paid more for work on prevailing wage projects than they are for work on non-prevailing wage projects. Thus, prevailing wage laws likely do increase the cost of public construction. In addition, to the extent that the quality of construction is improved, prevailing wage laws appear to be an inefficient mechanism by which to achieve additional quality, as the regulations often result in workers being paid more than they earn in the private market.     

The effects of prevailing wage laws: A comparison of individual workers’ wages earned on and off prevailing wage construction projects

I evaluate the effects of prevailing wage laws using a unique data set that shows the wages paid to workers on prevailing wage projects and the wages paid to the same workers during the same time period for work on projects not covered by prevailing wage regulations. The wage comparison shows that workers are generally paid more for work on prevailing wage projects than they are for work on nonprevailing wage projects. Thus, prevailing wage laws likely do increase the cost of public construction. In addition, to the extent that the quality of construction is improved, prevailing wage laws appear to be an inefficient mechanism by which to achieve additional quality, as the regulations often result in workers being paid more than they earn in the private market. This research was done originally for the Program Review and Investigations Committee of the Kentucky State Legislature. I thank the staff of the Program Review and Investigations Committee and the Legisla-tive Research Commission for assistance with data collection and Mark Berger for helpful comments. Due to confidentiality requirements, the data cannot be made available.     

ANTI‐POACHING AGREEMENTS IN LABOR MARKETS

We analyze competition for experienced workers among wage‐setting firms. The firms can design poaching offers with higher wages to workers who switch from rivals relative to wages paid to their own existing employees. We evaluate the profit and welfare effects of anti‐poaching agreements that eliminate poaching offers as a recruiting method. Anti‐poaching agreements increase industry profits, whereas workers are made worse off. We show that the effects of anti‐poaching agreements on total welfare are determined by the magnitude of workers' switching costs and the productivity change associated with switching employers. (JEL L41, L40, J42)     

Wage Inequality and Performance in Nonprofit and For‐Profit Organizations

This article examines the effects of several forms of wage inequality on service quality and employee effort. We suggest that two popular theories, tournament and fair wage/equity, are not necessarily competing. Each theory accurately describes aspects of employee behavior, but because of sectoral differences in organizational objectives and employee attitudes, tournament theory's predictions are relatively stronger in the for‐profit sector, while fair wage/equity theory's predictions are relatively stronger in the nonprofit sector. Using an employer–employee matched data set of nursing homes linked to a federal regulatory database and a resident survey, we found that ownership moderates the relationship between wage inequality and service quality. Although wage inequality positively affects service quality in the for‐profit sector, the reverse is true among nonprofit organizations. We also found that overall wage inequality in the workplace has a more pronounced influence on employee discretionary effort than does the employee's place in the distribution of wages.     

“THE WAR FOR THE FARE”: HOW DRIVER COMPENSATION AFFECTS BUS SYSTEM PERFORMANCE

Prior to 2007, two systems of bus driver compensation coexisted in Santiago, Chile: one paid drivers per passenger transported, while the other paid a fixed wage. Per‐passenger drivers engaged in “The War for the Fare,” altering their driving patterns to compete for passengers. Examining these systems on similar routes in Santiago, we observed two key findings. Compared with the fixed‐wage system, the per‐passenger system leads to (1) 13% shorter passenger wait times, via reduced bunching of buses and (2) 67% more accidents per kilometer driven, via more aggressive driving. We discuss implications for the design of incentives in public transit. (JEL L92, M52, R41)     

The relationship between employer‐provided training and the retention of older workers: Evidence from Germany

A substantial portion of Germany's workforce will soon retire, making it difficult for businesses to meet their human capital needs; training older workers may help to manage this demographic transition. The authors therefore examine the relationships between employer‐provided training programmes, wages and retirement among older workers. They find that when establishments offer special training programmes targeted at these workers, women – especially low‐paid women – are less likely to retire, possibly because of consequent wage growth. Their results suggest that such targeted training can indeed play an important role in retaining low‐wage older women and advancing their careers.     

RECIPROCITY UNDER BRIEF AND LONG-TIME DELAYS

We report the results from three experiments embedded in the same overarching design, which extends the Gift Exchange paradigm for the study of worker–employer relationships. We focus on the effect of the length of the delay, between the time at which workers learn their wage and when they choose an effort level, on the relationship between wage and effort. We compare effort choices made within a few hours with those made several weeks afterward. We find that the strength of the wage-effort relationship decreases over time, and this change appears to be driven by workers who receive low wages. (JEL C91, J33, M52)     

Occupational differences in the wage penalty for obese women

Prior research indicates overweight women are penalized with lower wages. The connection between weight and wages is tested for several occupational categories. The results suggest weight significantly reduces pay only for women in sales and service occupations, a finding consistent with customer discrimination. Obese females who are self-employed also receive a significant wage penalty in customer-oriented occupations, suggesting the pay discrepancy is not originating from employer discrimination.     

Workers, Unions, and Takeovers

How do takeovers affect workers?? wages and job security in the short-run? What role does the labor union play in mitigating these effects? I answer these two questions by analyzing wage and employment outcomes of over 4,000 public firms that were acquired between 1981 and 2002, using establishment-level data from the U.S. Census Bureau. I find that target establishments exhibit a net contraction in wages and employment, relative to comparable establishments after takeovers. Targets?? establishments in more unionized industries experience worse wage and employment outcomes after takeovers. These adverse effects are exacerbated when the establishment is located in a state with Right-to-work laws where unions face a less favorable bargaining environment. These findings indicate that target firms?? employees are negatively affected by takeovers and that their labor unions do not mitigate these negative effects.     

Joan Acker and Doing Comparable Worth

Joan Acker's seminal book Doing Comparable Worth, based on her first‐hand experience of implementing comparable worth for Oregon state employees, constitutes a major contribution to understanding the obstacles to achieving the goal of equal pay and is a precursor of her inequalities regimes work. For Acker the foundering of the comparable worth exercise on the rocks of management's opportunistic strategy to marginalize trade unions provided a direct experience of how gender and class inequalities are simultaneously produced and reproduced. Consequently, wage setting is always political and change to wages generates widespread resistance above and beyond issues of gender inequalities. While the feminist activists may be rightly criticized for naivety in their belief in a technical solution to gender pay inequalities, their robust critiques of pay practices is sorely missing in today's renewed acceptance of a gender‐neutral labour market, and more limited feminist interest in theories of pay.     

WAGES,EMPLOYMENT, AND STATISTICAL DISCRIMINATION: EVIDENCE FROM THE LABORATORY

We report results from laboratory experiments designed to examine statistical discrimination. Our design expands upon existing research by generating data both on wage contracts and unemployment rates of directly competing worker groups. We find some evidence for statistical wage discrimination against workers having an identical expected productivity but a higher productivity variance. However, those same subjects are less likely to be unemployed, suggesting that our employer‐subjects view hiring choice and wage contracts as substitutable. A clear implication is that field data discrimination estimates based on wages alone may overestimate the true impact of such discrimination. (JEL C90, J71)     

Over the Hill,Under Siege: Labor Force Graying,Labor Market Pushes,and Consequences for Life Chances

Interest in older workers has recently expanded due to concerns over labor force “graying.” Research and policy on aging adults' labor market participation have, thus far, framed the decision to labor as one shaped solely by the desires and capacities of older workers themselves. This perspective fails to recognize how multiple employer‐side barriers play a large role in defining – and limiting – available choices. In this review, I synthesize the multi‐disciplinary literature on employer‐side barriers to older workers' labor market participation. In particular, I identify and discuss individual‐, meso‐, and social structural‐level barriers that uniquely affect this group, noting where gaps in understanding remain. I consider older workers primarily as a whole to demonstrate how age operates as a distinct, important identity; however, I also reflect on how age overlaps with both other identities and cohort membership. Next, I briefly consider the relationship between these employer‐side barriers and aging adults' life chances, particularly in an era of austerity. Although I focus on the United States case, I also note key cross‐national similarities and differences. Finally, reflecting upon the foregoing review, I suggest that a redirection of public policy is necessary to effectively respond to this contemporary demographic shift.