Racialized Labour Market Incorporation? African Immigrants and the Role of Education‐Occupation Mismatch in Earnings

U.S. immigration policy debates increasingly center on attracting highly‐skilled immigrants. African immigrants, in particular, exhibit high levels of over‐education. But questions remain about whether African immigrants’ skills are appropriately utilized in the U.S. labour market. This paper uses U.S. Census and American Community Survey data to determine whether Africans’ over‐education leads to a corresponding wage disadvantage. I also investigate whether search and match, imperfect transferability, or queuing theory describes African immigrants’ wage outcomes. I find that, while African and Asian immigrants have similarly high rates of college education and over‐education, Africans experience significantly larger wage disadvantages due to over‐education. African immigrants’ low wages are closer to that of U.S. and Caribbean‐born blacks indicating that queuing theory describes their wage disadvantage. These findings suggest the need for policy addressing racial disparities in the labour market rather than new immigration policy.     

Day Labourers' Work Related Injuries: An Assessment of Risks,Choices, and Policies

Literature and theory surrounding the informal economy in international contexts suggest that informal work arrangements may entail assuming various levels of risk, and that the higher the level of risk in an employment arrangement, the higher the premium paid to the worker. This study is designed to assess if a wage compensation for risk exists within the United States' day labour job market ‐ the most visible sector of the United States' informal economy. Using data from the 2005 National Day Labour Survey we find a statistically significant wage premium indicating that a risk‐wage tradeoff within the day labour informal economy exists. Ultimately, we argue that current policy interventions facilitated through day labour centres into the day labour market appear to be effective in mitigating the risks associated with this type of employment.

• Evidence of a risk‐wage premium in the day labour market suggests there is an incentive to assume higher levels of risk in work arrangements which presents significant concerns for worker safety.
• Higher levels of work related risks assumed by day labourers, may be minimized if they receive proper safety training through a formal venue such as a worker centre.
• Worker centres only serve 20 per cent of all day labourers in the United States, suggesting a need for the establishment of additional worker centres in other connected or industry based work sites, to help mitigate potential work related risks and injuries in the day labour market.

     

On the Labour Market Progress of Polish Accession Workers in South‐East England

The enlargement of the European Union (EU) in May 2004 produced a very significant wave of immigration to the United Kingdom that is likely to continue to impact its labour market in forthcoming years. Polish migrants were by far the largest cohort of the new entrants. This paper complements previous work that has begun to establish the characteristics and labour market performance of migrants from the new member states who have entered the United Kingdom. This paper uses a unique micro‐level data base to investigate the labour market evolution of Polish migrants in the UK labour market. We find that in the first UK job returns to human capital were negligible. However, for the current job an extra year of education increases the weekly gross wage by 3.2 per cent. There is evidence of a gender differential in pay in both jobs and that older workers are paid more than their younger counterparts but this effect becomes insignificant in the current job. We find that hours worked is a significant factor in wage determination. However, the influence of hours worked on wages declined by approximately 38 per cent between the first and current job. Results from multinomial logit models suggest that over‐time there is some “match” between the occupational groupings that these workers were attached to in Poland and the United Kingdom. We also find evidence that the use of employment agencies by some of these workers increases the likelihood of employment in skilled manual and non‐manual occupations. Workers who have had supervisory responsibility in the United Kingdom are more likely to be in professional or intermediate occupations.     

Economywide Impact of Maize Export Bans on Agricultural Growth and Household Welfare in Tanzania: A Dynamic Computable General Equilibrium Model Analysis

Export bans have been frequently used by developing countries in recent years in an attempt to ensure domestic food supplies and insulate domestic market prices from international price hikes. This article uses Tanzania to examine the impact of export bans using a computable general equilibrium model. We find that banning cross‐border maize exports has very little effect on the national food price index and that the benefits from lower maize prices are captured primarily by urban households, while maize producer prices decrease significantly. The export ban further decreases the wage rate for low‐skilled labour and the returns to land, while returns to non‐agricultural capital and wage rates for skilled labour increase, further hurting poor rural households and thus increasing poverty for the country as a whole.     

Is There a Motherhood Penalty? Decomposing the Family Wage Gap in Colombia

The aim of this paper is to provide an estimation and decomposition of the motherhood wage penalty in Colombia. Our empirical strategy was based on the matching procedure designed by Ñopo (The Review of Economics and Statistics, 90(2), 290–299, 2008a) for the case of gender wage gaps. This is an alternative procedure to the well-known Blinder–Oaxaca decomposition method. Using the cross-sectional data of the Colombian Living Standard Survey, the wage gap was decomposed into four components, according to the characteristics of mothers and non-mothers. Three of the components are explained by differences in observable characteristics of women, while the other is the unexplained part of the gap. We found that mothers earn, on average, 1.73 % less than their counterparts without children and that this gap slightly decreased when the group included older women. It is observed from the results that, once schooling was included as a matching variable, the unexplained part of the gap considerably decreased and became non-significant. Thus, we did not find evidence of wage discrimination against mothers in the Colombian labor market.     

Women’s Tertiary Education Masks the Gender Wage Gap in Turkey

This paper investigates the gender wage gap for full-time formal sector employees, disaggregated by education level. The gap between the labor force participation rate of women with tertiary education and those with lower levels of education is substantial. There is no such gap for men. Hence, existing gender wage gap studies for Turkey, where we observe lopsided labor force participation rates by education levels, compare two very different populations. We disaggregate the whole sample by education level to create more homogenous sub-groups. For Turkey, without disaggregation, the gender wage gap was 13% in 2011, and women are significantly over-qualified relative to men on observed characteristics. Once we disaggregate the sample by education level, we show that the gender wage gap is 24% for less educated women and 9% for women with tertiary education in full-time formal employment. Observed characteristics only explain 1 % of this gap in absolute terms. We further disaggregate the data by public and private employment. The gender gap is higher in the private sector. However, women with tertiary education in the public sector are significantly better qualified compared to men, and consequently the adjusted gender wage gap is higher for women with tertiary education in the public sector. Our estimates also indicate a rise in the gender wage gap between 2004 and 2011.     

Free versus regulated migration: Comparing the wages of the New Zealand-born,other migrants and the Australia-born workers in Australia

New Zealanders can cross borders freely, work and live in Australia indefinitely thanks to the Trans-Tasman Travel Agreement. This paper uses a recently developed decomposition method to decompose the weekly wage gap at various quantiles on the wage distribution between New Zealand-born (NZ-born) and Australian-born workers, and between NZ-born workers, migrants from other English speaking countries (OESC), and from non-English speaking countries (NESC) to determine how free and regulated migration influences migrants’ performance in the Australian labour market. We found that NZ-born workers earned higher weekly wages than both Australian-born and NESC workers but earned lower wages than OESC migrants. Differences in endowment were primarily responsible for the wage gaps between NZ-born and Australian-born workers and between NZ-born and OESC migrants. However, differences in returns to worker and job characteristics are mainly responsible for the wage gap between NZ-born and NESC migrants.     

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.     

‘Survival Employment’: Gender and Deskilling among African Immigrants in Canada

Recent research points to a growing gap between immigrant and native‐born outcomes in the Canadian labour market at the same time as selection processes emphasize recruiting highly educated newcomers. Drawing on interviews with well‐educated men and women who migrated from countries in sub‐Saharan Africa, this paper explores the gendered processes that produce weak economic integration in Canada. Three‐quarters of research participants experienced downward occupational mobility, with the majority employed in low‐skilled, low‐wage, insecure forms of “survival employment”. In a gendered labour market, where common demands for “Canadian experience”, “Canadian credentials” and “Canadian accents” were uneven across different sectors of the labour market, women faced particular difficulties finding “survival employment”; in the long run, however, women’s greater investment in additional post‐secondary education within Canada placed them in a somewhat better position than men. The policy implications of this study are fourfold: first, we raise questions about the efficacy of Canadian immigration policies that prioritize the recruitment of well‐educated immigrants without addressing the multiple barriers that result in deskillling; second, we question government policies and settlement practices that undermine more equitable economic integration of immigrants; third, we address the importance of tackling the “everyday racism” that immigrants experience in the Canadian labour market; and finally, we suggest the need to re‐think narrowly defined notions of economic integration in light of the gendered nature of contemporary labour markets, and immigrants’ own definitions of what constitutes meaningful integration.     

Two Components of Wage Gaps Induced by Individual-level Variables: Intra-firm or Inter-firm?

Individual-level variables such as gender, education, occupation, and employment type are well-known factors that induce wage gaps in the labor market. This article aims to divide wage gaps into two components—those arising within each firm (the intra-firm wage gap) and those arising between different firms (the inter-firm wage gap)—and measure their respective proportions by individual-level variables, as studies suggest that each wage gap based on an individual-level variable has a unique mix of an intra-firm and inter-firm wage gap. This measurement can help enrich investigation into the generative process of wage gaps and formulate effective labor policies to reduce them. Accordingly, we compared the coefficients of the independent variables of the wage function estimated by a pooled ordinary least squares model and a fixed-effect model, using nationwide employer–employee matching data collected by the Japanese government. We found that wage gaps by gender and employment type mostly consist of intra-firm wage gaps, and those by education and occupation have a larger share of inter-firm wage gaps. The findings suggest that different research strategies are required to investigate the generative process of each wage gap, and that regulations on and interventions in organizational processes are important to reduce wage gaps based on gender and employment type.     

The Effect of Housework on Wages: A Study of Migrants and Native-Born Individuals in Germany

To increase labour market participation among migrants, an increase in female labour market participation is important, with wages being a significant incentive. In research on the gender wage gap, the consideration of housework has been a milestone. Gender differences in housework time have always been much greater among migrants than among native-born individuals. Based on data obtained from the German Socio-Economic Panel from 1995 to 2017, this study questioned whether housework affects the wages of migrant full-time workers differently than those of their native-born counterparts. To consider the possible endogeneity of housework in the wage equation, the analysis estimated, in addition to an OLS model, a hybrid model to estimate within effects. Significant negative effects of housework on wages resulted for migrant women and native-born individuals. The effects for migrant men were significantly smaller or insignificant, which could not be explained by threshold effects. The greater amount of time spent on housework by migrant women than by native-born women will in general lead to a larger wage decrease due to housework for migrant women than for native-born women. The results further showed that the observed variables explained very little of the migrants’ gender wage gap, in contrast to the gap of native-born individuals. Human capital returns, including education and work experiences, were much lower for migrant women than for native-born women, whereas differences in housework equally contributed to the explained share of the gap for both groups, indicating the greater relevance of housework for migrants’ wage gap.

     

Metropolitan Labour Markets, Peripheral Labour Markets and Socio-economic Outcomes among Immigrants to Israel

This article focuses on the impact of the local opportunity structure on socio‐economic outcomes of recent immigrants to Israel. Specifically, it examines the extent to which metropolitan labour markets versus peripheral labour markets differentially affect socio‐economic incorporation of recent “Russian” immigrants who arrived in Israel after the collapse of the former Soviet Union in 1989. Using the 1995 Israeli Census of Population, the analyses address the following questions: (1) were recent immigrants differentially sorted to local labour markets; (2) do local labour markets differentially affect socio‐economic attainment; and (3) do modes of socio‐economic attainment and patterns of ethnic inequality differ across metropolitan and peripheral labour markets? The analyses reveal that immigrants from the European republics and of lower education are more likely to settle in peripheral labour markets than in metropolitan labour markets. Peripheral labour markets, compared with metropolitan labour markets, have detrimental consequences for the socio‐economic outcomes of immigrants. The data do not provide strong support for the thesis that patterns of socio‐economic attainment and inequality differ much across labour markets. The rules according to which socio‐economic attainment of immigrants is determined are, for the most part, similar across labour markets. In general, occupational status and earnings of immigrants are likely to increase with the passage of time, education, European origin; and to decline with age regardless of type of the local labour market. However, the socio‐economic outcomes of immigrants are considerably higher in the metropolis than in the periphery. The findings suggest that the local labour market plays a major role in the determination of immigrants' socio‐economic rewards and outcomes.     

Labour Market Disadvantages of Second‐Generation Turks and Moroccans in the Netherlands: Before and during the Great Recession

This study uses two waves of panel data to examine the labour market integration of children of Moroccan and Turkish immigrants in the Netherlands. The data show a persisting educational attainment gap in terms of high school completion and post‐secondary attendance. The analyses of prime working‐age respondents indicate substantial ethnic penalties that accrue from the hiring process: controlling for educational background and demographics, the youngest cohort of the second generation is less likely to have employment than the native Dutch. We improve on earlier research on ethnic penalties in the Dutch labour market by including measures of precarious work – the chance of avoiding of non‐contracted work – and by comparing minorities’ standing in a pre‐recession (2009) and a peak‐recession (2013) labour market. The results indicate increasing employment disadvantages for both second‐generation groups at a time of labour surplus.     

The Paradox of the Quality of Life of Adults with Learning Difficulties

This paper is based on an empirical survey conducted in 1995 in Hungary. Data came from a stratified random sample of about 1300 adults with learning difficulties from all over the country. The author combines qualitative and quantitative methods in analysing the quality of life of people with learning difficulties and takes into consideration that their quality of life is as much determined by sociological factors as by the biologically and educationally understood level of difficulties. The paper shows that success in education and in the labour market does not equate to successful social integration. The quality of life of adults with learning difficulties is sometimes better in social circumstances which are less favourable for high achievement in education and in the labour market. Though the people from more privileged backgrounds may seem to lead a more active and social everyday life than those with working class origins they are still considerably less integrated in their social environments.     

Predicting Earnings Among Immigrants To Canada: The Role Of Source Country

The current study examines the importance of country of origin in predicting the labour market earnings among recent immigrants to Canada. The authors argue that, in addition to individual‐level characteristics associated with immigrant capital, macro‐level features associated with immigrant origins must be taken into account when considering the economic performance of immigrants in their host country. Country‐level factors are said to accompany immigrants to their destination country, which generate disparities in the “quality” of immigrants’ human and social capital across origin groups, as well as differences in how they are received by the resident population. The present study uses random effects multilevel modelling to investigate the extent to which immigrant incomes vary randomly across source country while taking into consideration individual‐level characteristics selected on the basis of human capital, social capital, and discrimination theories. Multilevel regression analysis confirms that immigrant incomes indeed vary significantly by country of origin, though the effect is small. Furthermore, it is revealed that the gross domestic product (GDP) of the sending country explains much of the level 2 variability in the labour market earnings of recent immigrants, as well as the relationship between racial minority status and immigrant incomes. The practical significance and policy implications of these findings are discussed.     

A multidimensional employment quality index for Brazil, 2002–11

In countries where informal, insecure jobs are widespread, traditional labour market indicators – such as the unemployment rate, labour force participation rate and wages – are not necessarily the most meaningful. The authors use a multidimensional employment quality index to analyse the Brazilian labour market over the period 2002–11, across three dimensions: earnings, formality (measured by the existence of an employment contract and social security contributions) and job tenure. The results show a significant increase in employment quality overall, especially in the years 2009–11, but with considerable differences between wage employees and self‐employed workers, and between industries.     

The Changing Pattern of Wage Returns to Education and its Implications

It is commonly believed that labour‐market returns to education are highest for the primary level of education and lower for subsequent levels. Recent evidence reviewed in this article suggests that the pattern is changing. The causes of such changes, and their implications for both education and labour‐market policy, are explored.     

A Privileged Pole? Diversity in Women's Pay,Pensions and Wealth in Britain

Is gender on its own becoming redundant in the analysis of employment experiences? There is a growing interest in economic diversity amongst women within the social sciences, with commentators suggesting, firstly, that a polarization in women's labour market experiences is occurring. Secondly, economic diversity amongst women may even be so distinct that a privileged pole is faring substantially better in wage and occupational terms than most men. This article uses data from the Family Resources Survey to explore these two suggestions. It concludes that the success on the labour market that has been achieved by an economically privileged pole amongst women supports the decline in the power of gender to explain variation in occupational patterns and wages, but it is clear that gender (tempered with awareness of the ways that it is cross‐cut by class, ethnicity and other social divisions) remains an invaluable explanatory variable for our understanding of economic security in its fuller sense, not least in the pension positions of women.     

Education and occupational status in 14 countries: the role of educational institutions and labour market coordination

This article explores the role of national institutional factors – more specifically, the level of skill transparency of the education system and labour market coordination – in accounting for cross‐national differences in the relationship between education and occupational status. Consistent with previous research, our findings suggest that skill transparency is the primary moderator. Countries with a highly transparent educational system (i.e., extensive tracking, strong vocational orientation, limited tertiary enrolment) tend to be characterized by a strong relationship between education and occupational status. These findings hold even after controlling for the level of labour market coordination. Nevertheless, we also find that labour market coordination plays an independent role by dampening the effect of education on occupational status. Taken together, these results suggest two quite different policy implications: (1) strengthening the skill transparency of the education system by increasing secondary and tertiary‐level differentiation may strengthen the relationship between education and occupation, regardless of the level of coordination, and (2) increasing labour market coordination could lead to improved social inclusion and a reduction in inequalities related to educational attainment.     

INFLATION AND WAGE RIGIDITY/FLEXIBILITY IN THE SHORT RUN

A recent literature uses accurate wage data from payroll records and provides compelling evidence against the conventional belief that nominal wages are downward sticky. This paper provides a unique contribution to this literature by conducting a formal analysis of the role of inflation in cyclical wage rigidity/flexibility. Analysis of payroll‐based wage data from the Korean labor market for the period 1971–2014 finds that the degree of downward nominal wage flexibility is countercyclical, and the countercyclicality becomes stronger during a deflationary, relative to inflationary, recession. This serves as a counter‐example to the conventional theory of cyclical wage rigidity. (JEL E24, E32, J30, J64)