The (unexpected) structure of “rents” on the French and British labour markets

This paper considers the allocation of labour on the French and British markets, using objective wage and subjective satisfaction data. We show that, in some sectors, workers enjoy both higher wages and higher job satisfaction. We argue that this reflects labour market wage rents. Perhaps surprisingly, wage rents are typical of the British public sector and permanent contracts, but not of their French counterparts. In France, such rents are found in full-time, rather than part-time jobs. Hence, the data provide little support for the usual a priori that the French labour market is structured along insider–outsider model lines, whereby wage rents are captured by the insiders of the public sector to the detriment of the private sector. However, they do suggest that part-time employment is involuntary to a far greater extent in France than in Great Britain.     

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)     

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.     

Union Worker Wage Effect in the Public Sector

This study examines union wage premiums in the public sector for the 1998–2004 period. Unlike previous studies, our approach estimates union wage premiums considering differences in the rewards to education, experience, and other personal characteristics for union and non-union workers. The approach provides a larger estimated wage gap than the traditional approach, and allows for simulations of union–nonunion wage gaps for different types of workers. Moreover, we use an Oaxaca decomposition to explain the larger union–nonunion wage gap in the private sector in comparison to that in the public sector. We find that between 50% and 60% of the difference in union wage premiums between the private and public sectors is due to differences in the way unionized workers are rewarded in the private and public sectors, while the remaining portion is due to differences in personal characteristics of private and public sector workers.

Does Public or Not-for-Profit Status Affect the Earnings of Hospital Workers?

This paper examines the earnings differentials among hospital workers in the public, private nonprofit, and private for-profit sectors. Utilizing data from the 1995 through 2007 Current Population Surveys, unadjusted earnings are highest in the private nonprofit sector and lowest in private for-profit firms. Once measurable characteristics are accounted for, health practitioners in for-profit and nonprofit hospitals earn similar wages while public sector workers earn small but significant wage penalties. Nonprofit hospitals tend to attract workers with higher levels of skill as measured by schooling and potential experience. This could be explained in part by worker sorting and lower cost containment incentives in nonprofit hospitals. Wage change analysis using pooled 2-year panels constructed from the CPS indicate no significant differences in earnings between the three sectors of employment. Whatever the role of the sector of employment on the overall earnings of hospital workers, there is sufficient worker mobility within the industry to largely eliminate systematic wage differences across type of hospital.

Self-employment,earnings, and sexual orientation

Although many studies document differences by sexual orientation in earnings and other labor-market outcomes, little is known about differences in self-employment. Our study contributes to both the self-employment literature and sexual-orientation literature by analyzing differences in self-employment rates and earnings by sexual orientation. Gay men are less likely to be self-employed than married men, whereas lesbians are equally likely to be self-employed as married women. We find that gay men earn less than married men. We do find, however, that for those gay men who are self-employed, there is little evidence of a further earnings penalty, at least among full-time workers. Lesbians earn at least as much as married women, but receive no further earnings premium—or penalty—by being self-employed, again among full-time workers.     

Sexual orientation and full-time monthly earnings, by public and private sector: evidence from Swedish register data

In this paper we explore annual earnings as well as full-time monthly earnings differentials resulting from sexual orientation. We observe that gay males are at an earnings disadvantage compared to male heterosexuals regardless of which earnings measure we use. This earnings disadvantage is found to be larger when we compare gay and heterosexual males who are working full-time. In addition, the disadvantage is larger in the private than in the public sector. Lesbians, however, earn more than heterosexual females. This earnings advantage is considerably smaller when we study full-time monthly rather than annual earnings but an earnings advantage for lesbians at the top of the earnings distribution is documented regardless of which earnings measure we use. In addition, lesbians are doing better than female heterosexuals in the public sector. To sum up, the results indicate that gay males face obstacles on the labor market that hinder them from reaching top-level positions and high earnings. The earnings advantage observed for lesbians is likely to stem from the fact that lesbians devote more time to market work than heterosexual females do.     

Public–private wage differential and gender gap in Latin America: Spoiled bureaucrats and exploited women?

This paper uses a rich collection of household surveys to investigate the wage differential between the public and private sectors in 13 Latin American countries. It also studies how the sector of employment affects the gender wage gap. Contrary to what is commonly thought, it is found that, in the majority of Latin American countries, there is a premium associated with working in the public sector. It is also found that the premium is often higher for women than for men but that this difference does not compensate for the wide gender gap.     

Employment and Sexual Orientation:

Economist, sociologists, and other social scientists have begun to study the influence of sexual orientation on individuals in the labor market, particularly with respect to employment discrimination. The conceptual framework developed in this paper connects lesbian, gay, and bixexual workers' disclosure of their sexual orientation to the economic and social characteristics of the workplace. Disclosure creates the potential for discrimination by employers and coworkers. The framework shows how sexual orientation operates independently and in interaction with other important characteristics such as race and gender. A review of existing research supports the hypothesis that discrimination against gay workers exists. Both workplace groups for gays and lesbians and those who work gay and lesbian workers (such as supervisors, personnel managers, and counselors) need to understand the relationship between disclosure and discrimination in order to make workplaces supportive of lesbian, gay, and bisexual workers.     

Firm Ownership and Rent Sharing

In this paper we analyse—theoretically and empirically—how the degree of private versus public ownership of firms affects the degree of rent sharing between firms and their workers. Using a particularly rich linked employer-employee dataset from Portugal, covering a large number of corporate ownership changes across a wide spectrum of economic sectors over more than 20 years, we find that rent sharing is significantly higher in firms with a larger share of private ownership. Estimates from our most preferred empirical specification suggest that an increase in the private ownership share of 10 percentage points increases (on average) the rent-sharing elasticity by 0.0002. Based on a theoretical analysis that incorporates union-firm wage bargaining and efficiency wage effects within the same modelling framework, this result cannot be explained by private firms being more profit oriented than public ones. However, the result is consistent with a scenario whereby privatisation leads to less job security for workers, implying stronger efficiency wage effects.     

Parenthood wage penalties in a double income society

We estimate how parenthood affects hourly wages using panel data for Norwegian employees in the years 1997–2007. Though smaller than for most other OECD countries, we find substantial wage penalties to motherhood, ranging from a 1.2 % wage reduction for women with lower secondary education to 4.9 % for women with more than four years of higher education. Human capital measures such as work experience and paid parental leave do not explain the wage penalties, indicating that in the Norwegian institutional context, mothers are protected from adverse wage effects due to career breaks. We do however find large heterogeneity in the effects, with the largest penalties for mothers working full time and in the private sector. Contrary to most studies using US data and to previous research from Norway, we find a small wage penalty also to fatherhood. Also for men, the penalty is greater for those who work full time and in the private sector. A substantial share of the fatherhood wage penalty is explained by paternity leave.     

Wage Mobility in Israel: The Effect of Sectoral Concentration

Using a unique eight-year data set, merging population census and national insurance data, the paper examines and compares patterns of wage mobility in Israel. First, the public and the private sectors are compared. Second, within each of these sectors, a distinction is made between sub-sector groupings that exhibit a high level of concentration and those that are more diffuse and unregulated. Based on alternative measures of wage mobility, the central finding of the paper is that the extent of wage mobility in a given economic sector is negatively related to the degree of concentration in that sector.     

The Equality Deficit: Protection against Discrimination on the Grounds of Sexual Orientation in Employment

The provisions of UK law offer no specific protection to gay men and lesbians suffering discrimination in the workplace on the grounds of sexual orientation. Such discrimination may take many forms and can result in ‘fair’ dismissal in certain circumstances. This article considers the degree of legal protection available under current provisions and investigates possible sources for the development of specific anti‐discrimination legislation. It is concluded that, despite the application of certain aspects of employment law, the level of protection afforded to this group of workers amounts to an equality deficit in comparison to the legal redress available to those discriminated against on other grounds. Although the development of human rights legislation may have some application in this context, the combination of institutionalized discrimination and wider public policy concerns suggest that the introduction of specific legislation aimed at eliminating such discrimination in the United Kingdom is still some way off.     

Sexual Orientation,Labour Earnings,and Household Income in Canada

Using five cycles of a large nationally representative Canadian health survey, covering 2008 to 2012, the present paper examines the extent of labour earnings and household income gaps among gays, lesbians, and heterosexuals. The data used in this paper has the advantage of allowing for a direct classification of sexual orientation, through respondent self-identification. In accord with previous reports, this paper finds that homosexual females holding fulltime employment earn statistically significantly above comparable heterosexual females. Homosexual males with fulltime employment, on the other hand, are found no different in their earnings, from otherwise identical heterosexual males. When household income is considered, data reveal that lesbian households have statistically significantly lower incomes compared with otherwise identical gay households, who outearn heterosexuals as well. This pattern, not previously reported for Canada but observed in some other countries, is likely due to the combined effects of the general gender wage gap, the fading of homosexual males’ wage penalty, and the existence of two male income earners in a gay male household.     

Minimum Wages in a Segmented Labor Market: Evidence from South Africa

The segmented labor market model describes the impacts of minimum wages on covered and uncovered sectors. This paper examines the impacts of an industry-specific minimum wage in South Africa, a state characterized by high unemployment, a robust union movement, and the presence of a large informal sector. Under the industry-specific wage law, formal agricultural and household workers are covered, while workers in other sectors are not. The unique aspect of this paper lies in the ability to compare the impacts of minimum wage legislation on formal covered, informal covered, formal uncovered, and informal uncovered workers. This natural experiment allows us to test whether industry-specific minimum wage legislation leads to higher wages, whether wage increases are restricted solely to covered formal sectors or if there are spillover effects, and whether such legislation manifests in disemployment effects. We find evidence of higher wages yet disemployment among black workers in formal markets. In informal markets we find no employment effects, but higher wages in formal markets appear to have spilled over into informal markets in covered sectors.     

Union premiums in the federal and private sectors: Alternative evidence from job queues

Although traditional wage estimates indicate a larger union-nonunion differential in the private sector compared to that in the federal sector, the role of non-wage benefits is ignored in such comparisons. A job queue approach shows that premiums to unionized employment (in terms of both wage and non-wage benefits) are lower in the federal sector than in the private sector. This approach not only overcomes the limitations of wage studies in examining the relative superiority of union over nonunion jobs in both sectors, but also strengthens their conclusions through a more appropriate alternative method. The author thanks John Heywood, Neil Garston, Richard Roseman, and Miles Finney for helpful comments. I also thank the editor and the referee for extremely useful suggestions.     

The Allocation of Black Workers into the Public Sector

Abstract

This study examines the effects of individual and structural factors on the odds that a black worker will be employed in the public sector (federal or state-local government) rather than the private sector. The independent variables include human capital, gender, citizenship, and the structural features of the labor markets (metropolitan areas) in which these workers reside (percent black, residential segregation, geographic region). The study focuses on percent black and residential segregation, two variables which significantly influence discrimination, group power and the employment opportunities of black workers. Logistic regression shows that, controlling for other factors, the odds of black employment in the public sector are highest in metropolitan areas that have large black populations and relatively low levels of residential segregation. These findings indicate that the allocation of black workers into the public sector results from processes of both discrimination and group power. The implications of the findings for the future prospects of black Americans to advance economically through public sector employment are discussed.     

Sexual Orientation and Labor Market Discrimination

We develop empirical estimates of the return to sexual orientation in the labor market and utilize the 2004 Current Population Survey to determine if lesbians and gay men are treated differently from their heterosexual counterparts. We find strong evidence consistent with the hypothesis of discriminatory treatment against gay men, and this evidence differs substantially by occupation. On the other hand, we find no evidence of discrimination against lesbians. These findings are consistent with priors based on economic theory of the standard taste for discrimination and statistical discrimination models. The results for both men and women are consistent across wage and total compensation regressions.

Public enterprise and the rise and fall of labor share

Developed economies experienced a rise and fall in labor share (LS) in the postwar period. We present a novel explanation of these trends – public enterprise employment. We document a link between it and both LS and wage compression in 15 developed nations. We then build a model that shows how overstaffing public enterprises can increase LS and reduce wage inequality. Overstaffing directly increases public enterprise LS and indirectly increases private sector LS by reducing available labor. We examine several public enterprise reforms. Consistent with the model’s predictions, reforms reduce public enterprise LS permanently and private sector LS temporarily.     

Organizing Sexualities,Organized Inequalities: Lesbians and Gay Men in Public Service Occupations

This article examines the experiences of lesbians and gay men who are employed in a variety of public service occupations in the UK, drawing upon interview material gathered during a broader research project on lesbian and gay self-organization within the public sector trade union UNISON. It forges pathways through hitherto unexplored territories by concentrating upon career trajectories beyond the closet, arguing that those who dare to come out and proud in public sector workplaces will tread a precarious tightrope between being out and pursued for their specialist knowledges and out and persecuted for their presumed perversities. Although many public sector employers have endorsed equal opportunities policies which include lesbians and gay men, and although these have been vital in alleviating some forms of discrimination, it is argued that such measures have been incapable of resolving the more profound double-binds etched into our organizations, whereby sexualities are reproduced as inequalities, while sexuality itself is eclipsed from the organization's self-consciousness. It is claimed that in virtue of their unique positions and perspectives, lesbian and gay employees have become the carriers of the sexual consciousness of their organizations. However, it is also acknowledged that the political agenda on lesbian and gay rights will not remedy deeper ignorances and broader injustices, unless the heterosexual majority and other non-heterosexual minorities are also parties to these debates.