Does Welfare Participation Affect Women's Wages?*

Objectives. This study examines how welfare participation and employment affect women's wages. Methods. We use longitudinal data from the 1996 Survey of Income and Program Participation and fixed‐effects regression models to test our hypotheses. Results. Our results indicate that time spent on welfare while unemployed results in a wage penalty that is similar to the penalty associated with nonwelfare work breaks. Time spent on welfare while employed has no effect on wages, unlike the strong positive impact of nonwelfare work periods. Conclusions. Working while on welfare does appear to prevent further wage deterioration, but does not lead to substantial wage growth.     

Collective bargaining levels,employment and wage inequality in Spain

After the increase in inequalities following the Great Recession, studies on wage bargaining systems have increasingly focused on wage inequality. This research examines wage inequality associated with collective bargaining levels in Spain, based on matched employer–employee microdata and quantile regression methods. These methods are applied across the wage distribution, following the method proposed by Firpo et al. (2011), to estimate wage premiums associated with agreement levels and to decompose the wage differentials observed at different points of the wage distribution. From the evidence obtained it can be concluded that, although the higher wages found in firm-level agreements are explained by the better observed characteristics of firms and workers covered by these collective agreements, there remains a positive wage premium. Although this premium is seen throughout the wage distribution, it favours mostly workers in the middle and upper-middle end. This slightly increases wage inequality in comparison with sectoral agreements. In contrast, workers without collective bargaining coverage generally suffer a wage penalty. This penalty is only observed on the left of the wage distribution. It becomes a significant wage premium in the upper end of the distribution, which implies a significant increase in wage inequality. In short, the evidence of this research suggests that reducing the coverage of collective bargaining could be associated with a significant increase in wage inequality. A better policy option for countries with a predominant sectoral model, such as Spain, would be to move towards an organized decentralization model. This would cause significant gains in employment as suggested by OECD (2019) and only a slight increase in wage inequality.     

The Cost of Parenthood: Unraveling the Effects of Sexual Orientation and Gender on Income*

Objectives. Prior research has repeatedly shown that parenthood affects employment outcomes; mothers have, on average, lower wages and are less likely to be hired than childless women. Some research indicates that this effect of parenthood on employment outcomes is dependent on sexual orientation. In particular, lesbian mothers might be treated more like childless women by those making employment decisions. This article examines the degree to which the lesbian wage advantage can be explained by lesbians avoiding the motherhood wage penalty experienced by heterosexual women. Methods. Drawing on 2000 U.S. Census data, this issue is first explored via ordinary least squares regression equations that estimate the effect of having a child present in the household on income. The Blinder‐Oaxaca method is then employed to decompose the earnings differential between heterosexual and gay individuals. Results. Results indicate that lesbians appear to experience a motherhood advantage that increases their wages by approximately 20 percent. Further, results support the notion that lesbians receive different returns to the presence of children in the household than do heterosexual women. Approximately 35 percent of the wage differential between lesbians and heterosexual women is attributable to differences in returns to child rearing. Conclusion. These findings have relevance for state and federal anti‐discrimination laws and work/family policies, as they provide further insight into the role that gender, and gender‐based assumptions, play in determining employment outcomes.     

Job Mobility and Early Career Wage Growth of White,African‐American,and Hispanic Women*

Objective. This article examines whether and how young women's job mobility influences racial and ethnic wage‐growth differentials during the first eight years after leaving school. Methods. We use the NLSY‐79 Work History File to simulate the influence of job mobility on the wages of skilled and unskilled workers. Results. African‐American and Hispanic women average less job mobility than white women, especially if they did not attend college. Unskilled women who experience frequent job changes during the first four postschool years reap positive wage returns, but turnover beyond the shopping period incurs wage penalties. Job mobility does not appear to boost wage growth for college‐educated women. Conclusions. Among unskilled women, race and ethnic wage disparities partly derive from group differences in the frequency of job changes, but unequal returns to job mobility drive the wage gaps for skilled women. We discuss several explanations for these disparities.     

SPECIAL ISSUE： MIGRANT WORKERS IN THE COURSE OF URBANIZATON Wages for migrant workers in the Pearl River Delta： determining factors

本文通过对珠江三角洲农民工问卷调查资料的回归分析,试图检验在市场转型下的企业制度和社会环境对农民工工资的影响。研究发现,人力资本中的教育年限、本企业工龄等变量对农民工工资有显著的正向影响,年龄和性别也有显著影响;企业制度中的工种对工资有显著影响,表现出明显的等级性。企业所属行业、规模和企业性质对工资没有显著影响,是否签订劳动合同和缺工情况同样如此。社会资本变量和社会环境变量对农民工工资水平没有显著影响。文章由此认为,农民工的工资是处于分割的二元劳动力市场一端,是高度市场化的,缺乏企业内部劳动力市场或晋升机制,也少受劳动力市场用工情况变化影响,没有地区性差异,是一个实实在在的、刚性的低工资。     

Does globalization benefit developing countries? Effects of FDI on local wages

Two different reactions to globalization (either supporting or opposing globalization) are observed throughout the world. Focusing on the effects on the labor market, we examine whether foreign direct investment benefits workers employed by local establishments in a host developing country. The analysis shows that they received wages above the market-based wage that would otherwise prevail in the absence of foreign establishments. Although concerns exist that growing multinational business might have negative impacts on local workers, this paper suggests that those fears might be unwarranted.     

Training and the Earnings of Immigrant Males: Evidence from the Canadian Workplace and Employee Survey*

Objective. To improve on the existing research on earnings differentials between visible minority immigrants and the native‐born, and on the role of discrimination in producing that difference. To do this we introduce into the analysis: (1) access to training and (2) training effects on earnings growth. Method. Using a panel data set containing information on training we test cross‐sectional models of access to training, cross‐sectional models of wage determination, and panel models of wage growth. Results. Visible minority immigrants are disadvantaged in both access to training and earnings; education reduces the disadvantage; and they do better than the other two groups in wage growth. Conclusions. Some results are consistent with a discrimination interpretation but, considered together, the complete sets of results are difficult to reconcile with any relatively straightforward discrimination account.     

Are government wages interlinked with private sector wages?

The ongoing fiscal and financial crisis with significant macroeconomic imbalances in the euro area raises the question in how far public–private wage interaction and even wage spirals contribute to fiscal and competitiveness problems. In this vain we analyse empirically whether the evolution of public sector wages is decoupled from that of the private sector. Using data for number of OECD countries, we find: (i) a strong and extremely robust positive annual contemporaneous correlation of public and private sector wages over the business cycle; (ii) evidence of co-movement of these variables over the medium and long run. From a policy perspective, the findings of this study suggest public wage restraint and private wage flexibility coupled—where needed—with institutional reform to prevent or break public–private wage spirals.     

Hispanic Ethnicity,Gender, and the Change in the LEP‐Earnings Penalty in the United States During the 1990s*

Objective. Although studies suggest that the earnings of limited‐English‐proficient (LEP) Hispanic men have recently improved relative to the English fluent, it remains unclear as to whether specific Hispanic groups experienced similar improvements. Methods. Using 1990 and 2000 U.S. Census data, this study employs regression, wage decomposition, and quantile regression analyses to examine how gender and Hispanic ethnicity relate to the LEP‐earnings penalty. Results. The LEP‐earnings penalty fell significantly for Mexican‐American men between 1990 and 2000. However, additional results suggest that this penalty increased for Cuban‐American men and women (and, to a lesser extent, for Mexican‐American women). Conclusions. Expanding trade and ethnic networks as well as reduced statistical discrimination have not systematically benefited all LEP Hispanic populations. Therefore, policies designed to enhance English‐language proficiency may yield heterogeneous socioeconomic outcomes along the ethnic, gender, and income class dimensions.     

Are there rewards for language skills? Evidence from the earnings of registered nurses

The existing empirical evidence on whether U.S. labor markets reward workers for second-language skills is meager and conflicting. Employing data from the National Sample Survey of Registered Nurses in 2000 and 2004, this study reexamines the positive bilingual–earnings relationship found in the most current research on this topic. We test the relationship using alternative models that explain the wages earned by nurses. The advantage of this approach is that it permits an assessment of how sensitive the results are to changes in the variables used in the model. We find the evidence of a positive bilingual effect on earnings to be mixed. The relationship is sufficiently frail that statistically significant results eventually dissolve as more precise occupational characteristics are included in the wage equation. Moreover, using more current data, we find no evidence of a wage premium paid to nurses for second-language skills. We offer possible explanations for this lack of evidence within this specific occupation.     

An empirical assessment of the wage premium for American veterans of World War II

This paper examines U.S. census data from 1960 to 1980 to assess the relative wages of WWII veteran and non-veteran men. Our analysis reveals that a significant portion wage gap between veterans and non-veterans (the “veteran wage premium”) is due primarily to differences in education, work experience and other socioeconomic characteristics. Our findings are consistent with the notion that greater human capital, due perhaps to the selection process for military service, or to the post-war benefits provided by the GI Bill, helped contribute to the remarkable post-war labor market success of American veterans. To a lesser extent, veterans may also have benefited from preferential labor market treatment, or from intangible aspects of military experience that enhanced their returns to earnings-related characteristics.     

Effects of US citizenship on wages of Asian immigrant women

The article presents a cross‐sectional study on the effects of US citizenship on wages of Asian immigrant women. The findings show that US citizenship positively moderated the relationship between sample characteristics and wages. Higher education (university and graduate school) significantly boosts the wage level of Asian immigrant women who have US citizenship. However, such positive influence does not exist for Asian immigrant women without US citizenship. This finding suggests that Asian immigrant women without US citizenship still face a glass ceiling. Key Practitioner Message: ● Educate immigrants about the importance of and potential benefits associated with citizenship.     

Differences in wage determination in the Eurozone: A challenge to the resilience of the common currency

Different developments in wages and unit labor costs across countries can reduce the synchronization of business cycles within a currency area and therefore be a potential source of asymmetric shocks and/or asymmetric response to a common shock. In this paper, we use novel econometric methods to identify differences and similarities in wage determination across Eurozone countries. Results show that wages have different determinants across euro area countries, among which two relatively distinct groups can be identified. In particular, wages in Germany, Austria, Belgium, Luxembourg, the Netherlands and Finland behave more similarly, are less sticky and respond more to macroeconomic conditions than those in the group composed of Italy, Spain, Portugal, France and Ireland. Moreover, the equilibrium wage has been affected by a structural change contemporaneous to the international financial crisis. Finally, structural reforms since the euro crisis have contributed to make labor market structures in Eurozone countries more similar, which contributed to improve the resilience of the Eurozone, but the job is not completed yet.     

The impact of opening markets on Mexican male/female wage and occupational differentials

This article addresses the effect of a more open market under NAFTA on the economic status of Mexican women. It is assumed that increases in export processing and tourism, industries that have a high demand for female labor, will result from the agreement. The approach of this study is to use regression and correlation analysis to compare wage and occupational differences in two Mexican cities: Tijuana, on the U.S.-Mexican border, and Torreon, in the interior. A major findings is that the overall wage gap is statistically significantly lower where there is increased export processing activity, but there appears to be very little change in occupational segregation. Three additional impacts are: first, that labor force participation rates increase for both men and women, but proportionally more for women. Second, the higher labor demand appears to weaken the relationship between the job qualifications of education and experience and wages. Third, wages by gender are more equal, but for the labor force as a whole there is a greater level of wage dispersion.     

Inclusive Europe: the impact of the EU Cohesion Policy on immigrants’ economic integration in Italy

By examining the impacts of the Cohesion Policy on immigrants’ economic integration, this study provides evidence on how the European Union promotes inclusion. Focusing on Italian municipalities, we estimate the causal effects of immigrant-related projects on the wage gap between natives and immigrants during the 2007–2018 period. We find a significant decrease in the average wage gap of approximately 7.6%. Specifically, Cohesion Policy played a positive role in immigrant economic inclusion through interventions targeted at supporting the employment and mobility of workers. For the inclusive dimension of the Next Generation EU program, this is key evidence to start with.     

Do Mutual Obligation Breach Penalties Coerce Compliance with Government Expectations?

A Brisbane survey was conducted to examine some of the consequences of Centrelink breach penalties when applied to unemployment welfare recipients under the Howard Coalition Government's ideology of Mutual Obligation. Fifty‐six such recipients responded to the author's survey by completing a questionnaire about their experiences after receiving one or more breach penalties. The consequences of being breached for those respondents are contrasted with the Coalition Government's stated expectations for its Mutual Obligation driven breach penalty system. The background to the rise of Mutual Obligation as an ideology and the elevated incidence of breach penalties are briefly discussed, along with the report of the survey findings. Interestingly, two surprise findings are given specific focus as they offer new insight.     

An American Dream Unfulfilled: The Limited Mobility of Mexican Americans

Objective . We build on past research regarding immigrant group adaptation by examining the wages of first–, second–, and third–generation Mexican–American men and women and empirically evaluating if past theories of immigrant incorporation apply to the Mexican–American case. Methods . We use the 1989 Latino National Political Study and the 1990/1991 Panel Studies of Income Dynamics and OLS regressions to estimate the effects of generation and human capital on wages. Results . Immigrant men and women report lower wages than their second– and third–generation counterparts, but once human capital controls are added, the wage pattern becomes one of steady decline across generations for men, and stagnation or marginal decline across generations for women. Conclusions . Our results generally contest the applicability of linear assimilation hypotheses to the Mexican–American experience, while lending some credence to the selectivity and immigrant optimism hypotheses. Results also indicate the importance of developing more contextualized immigrant adaptation frameworks.     

Import competition, employment and wages in U.S. manufacturing

This paper uses cointegration analysis to examine if employment and wages in the U.S. manufacturing sector exhibit any long run relationship with import competition. While overall the cointegration analysis supports the results reported in Revenga’s (1992) panel study it indicates that in the long run a positive correlation between import price and employment and/or a negative correlation between import price and wage are sector sensitive. There is also a considerable variation in the magnitude of employment and wage elasticities.     

Competition and Wage Discrimination: The Effects of Interindustry Concentration and Import Penetration*

Objective. Economic theory suggests that competition reduces employers' latitude to engage in wage discrimination ( Becker, 1957 ). This study investigates the impact of foreign and domestic competition on wage discrimination. Method. Utilizing the sample of males in U.S. manufacturing industries from the 1990 Public Use Micro Sample (PUMS), industry wage equations are estimated. In a second stage, the impact of domestic and foreign competition on racial wage disparity is assessed. Results. We find little evidence to support our hypothesis. Conclusions. Notwithstanding, the failure of conventional economic theory to satisfactorily explain racial wage disparity reiterates the need to incorporate alternative theories of discrimination into mainstream economic theory.     

劳动剩余条件下的供给不足与工资上涨——基于家庭分工的视角

基于贝克尔家庭经济学和时间配置理论可以证明,劳动剩余条件下的劳动供给并不是无限的。受制于家庭分工的约束,供给曲线呈特殊的阶梯形态：随劳动供给的增加,农业劳动力的保留工资不断提高,且幅度不断扩大。劳动供给对工资的反应是非连续的：只有当工资上升到新的保留工资水平时,劳动供给才会增加;否则,工资上涨并不能带来供给增长。与这种特殊的供给形态相对应,工资上涨的主要动力从农业收入转向工业劳动需求。内蒙、甘肃两省1,500个农户的调查数据证明了上述判断。当劳动需求扩张时,由于工资的微调不能带动供给的微调,劳动力市场将长期难以出清。这提醒我们,当前农民工工资上涨与用工短缺并存现象很可能源于劳动剩余条件下的供给不足,并不必然意味着剩余劳动力枯竭,不能作为刘易斯拐点到来的证据。