Fiscal austerity and public servant quality

In this article we use a simple model to analyze the forces that determine the size of the public sector and the quality of workers employed in that sector. Workers are heterogeneous, and the public sector chooses an employment strategy which maximizes a utility function U(s, Y) that depends on the share of the labor force employed in public service s and private sector output Y. The government is fully informed about worker productivity. We characterize the behavior of the public sector, and explore the efficiency and employment consequences of imposing fiscal constraint on the government.     

The mediating role of inclusion: A longitudinal study of the effects of leader–member exchange and diversity climate on job satisfaction and intention to leave among child welfare workers

Due to increasing diversity among clients and workers in the public child welfare] sector, it is essential to understand how workforce diversity can be channeled into positive organizational outcomes. Using theories of symbolic interaction, reference groups, and social identity, we tested a conceptual model of the relationships between diversity characteristics, leader–member exchange, diversity climate, perception of inclusion, and job satisfaction and intention to leave among public child welfare workers. The current study used two waves of data from 363 employees of a large urban public child welfare agency in the western United States. Path analysis results indicate that leader–member exchange and diversity climate have a positive effect on job satisfaction through inclusion, and that a positive organizational diversity climate can lower intention to leave through both inclusion and job satisfaction. Findings illustrate how organizational climates of diversity and inclusion affect both job satisfaction and intention to leave, providing insight into organizational factors that can be targeted for workplace interventions.     

The Political and Civic Lives of Public Sector Workers: Unions and “Public Service Motivation”*

Public sector employees are highly engaged in civic and political life, from voting to volunteering. Scholars have theorized that this political activity stems from “public service motivation,” or the selection of publicly oriented individuals into public work. We build on this work by analyzing the role of public sector unions in shaping participation. Unions are central mobilizing organizations in political life, and one in three public sector workers are unionized. Special supplements of the Current Population Survey provide data on various forms of participation, sector, union membership, and union coverage. Logistic regressions find that unionized public sector workers have much higher odds of engaging in a range of activities compared to non‐union public workers, including protest, electoral politics, and political communication. Union membership impacts service work to a lesser extent, suggesting that unions are more central to political lives. These findings have implications for the consequences of union decline, including the class, race, and gender composition of who participates in democratic life.     

Mothers in the workforce

This evaluation of maternity leave was completed by the Australian Institute of Family Studies. The use of maternity leave was investigated in 3 separate surveys. In 1, all women throughout Australia who had borne a child during 1 week in May 1984 (2000 women) were surveyed 18 months after the birth. The 2nd and 3rd surveys examined the experience of maternity leave in 1252 private sector businesses of varying sizes and a smaller number of public sector organizations. The study found that 46% of women are in the workforce during pregnancy. However, looking only at women in employment before the 1st birth, 3/4 of them are in the workforce. 44% of women took maternity leave, 33% were eligible but did not take leave, and the remaining 24% were ineligible for maternity leave either because they were casual workers or because they had not been in continuous employment with their employer for the required minimum period of 12 months. Of all maternity leave taken, 78% is taken by public sector employees and only 21% by women employed in the private sector. 1/2 of the women eligible for maternity leave in the private sector who did not take up the option had no information about maternity leave provisions. The main determinants of taking maternity leave, apart from having information about it, are working in the public sector, having a strong attachment to the workforce, having values which see work and child rearing as complementary, being a member of a trade union, having a high education and high status occupation, and being employed in a large establishment. Other survey findings follow. 1) 55% of women who were in employment before their 1st child returned to the workforce within 18 months of the birth. 2) 45% of women returned to work used informal child care provided by family or friends (usually unpaid). 32% used formal care only. 23% used a combination of formal and informal child care. 3) Women are spending an average of between 20% and 25% of their income on child care. 4) Financial reasons are the main reasons given by women for their return to the workforce. 5) Cost and availability of child care is an important issue in determining women's workforce participation after the birth of a child. 6) 60% of women do not return to the workforce after childbirth; 90% of these women intend to do so in the future. 7) For the majority of women who give birth, motherhood emerges as their most important role in life. Almost 1/2 the women agree that a woman should give up her job if it inconveniences her husband and children. 8) 2/3 of working women can establish just as warm and secure a relationship as non-working mothers, compared with 4 out of 10 non-working mothers.     

A dynamic model of public sector employer response to unionization

We model the response of public sector employers to unionization using the response of public school boards to teacher unionization as an example. While it is generally believed that public sector employers pay unionized workers more than nonunion workers, there is less consensus about where the money comes from. We model two cases which are possible employer reactions to unionization: re-allocating resources among types of expenditures and modifying the way in which services are provided. The model contains a political equilibrium that determines the union’s preferences and an economic equilibrium that reflects labor market conditions. We compare the predictions of the two cases regarding the effect of unionization on wages, turnover, allocation of expenditures, and productivity. We interpret existing empirical research on public sector unionization in light of these predictions and make recommenda-tions for future empirical work.     

Privatization of Refuse Removal and Labor Costs*

We examine the labor-cost savings associated with privatization by comparing earnings and employment trends of public and private sector refuse workers. Findings suggest that high union earnings for workers in the public sector are a source of labor-cost savings in the refuse industry. Evidence on job changers does not indicate that earnings for this group of workers are a compensating differential. Metropolitan area employment findings suggest that municipalities are less likely to use union refuse workers in the public sector when a relatively small percentage of area residents belong to a union.     

Labour migration in the Arab Gulf states: patterns,trends and prospects

This paper presents an analysis of recent changes in the scale and characteristics of non-national migration to, and employment in, the 6 Gulf Cooperation Council (GCC) member states. In 1985, the size of the workforce in the Gulf States was 7.1 million. Non-nationals comprised 68% (in Saudi Arabia) to almost 91% (in United Arab Emirates) of the workforce. 63% of the non-nationals were from Asia. Non-national Arab workers represented 30% of the total. In 1985, 36% of all migrant workers came from India and Pakistan. Almost 30% of the non-nationals were employed in services (financial, personal, and community), and almost 29% were in construction. Non-nationals dominate 3 sectors: construction, manufacturing, and utilities. Non-nationals account for a relatively low 55% of the oil sector. The phenomenal rate of growth in non-national workforces during the mid 1970s began to slow in the 1980s. Labor permit issues peaked in the late 1970s and again in 1983-84. The timing and scale of the decline varies by sending country and by destination, reflecting variations in the rate and extent of the economic slowdown in different GCC states, as well as relative wage rates, occupational composition, and organization of the various labor flows. For example, Indian case worker placements fell by 49% between 1983 and 1986, while the number of Filipinos placed fell by 15%. During the 1980s, most Gulf states have increased efforts to enforce labor and residence regulations, but the number of illegal workers has continued to grow. During the 1st half of the 1980s, demand for non-national labor increasingly turned towards new supplies in South and Southeast Asia, notably Bangladesh, Sri Lanka, Indonesia, Thailand, and the Philippines. Meanwhile, an increasing share of Arab and South Asian workers were renewing their work permits, often on less favorable terms. The construction sector has had the greatest decline in new labor inflows; however, the service sector is still growing. Wage rates have fallen an average of 20-30%, and up to 45% since 1983. Since 1985, about 615,000 non-national workers have left. Southeast Asian labor has been most acutely affected by the sharp downturn in economic activity. By 1990, the non-national workforce should decline to 4.36 million, but then it will increase slowly. The number and share of Southeast Asians will rise.     

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.     

Privatization of refuse removal and labor costs

We examine the labor-cost savings associated with privatization by comparing earnings and employment trends of public and private sector refuse workers. Findings suggest that high union earnings for workers in the public sector are a source of labor-cost savings in the refuse industry. Evidence on job changers does not indicate that earnings for this group of workers are a compensating differential. Metropolitan area employment findings suggest that municipalities are less likely to use union refuse workers in the public sector when a relatively small percentage of area residents belong to a union. The authors thank Jacqueline Agesa, Keith Bender, Maria Crawford, and Richard Perlman for valuable suggestions. Research assistance from Eric Blackburn is greatly appreciated.     

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.     

The Impact of Migration on the Gendering of Service Work: The Case of a West London Hotel

This article responds to a call from Kerfoot and Korczynski to investigate the gendering of service sector employment. As a characteristic of many post‐industrial economies in the global North is the growing significance of migrant workers, this article investigates the impact of migration for work on the gendering of service work. Taking the embodied and emotional labour of workers to be fundamental to service work, it describes how these are refracted and produced through migration. The article draws on 60 interviews with workers in a west London hotel who were born abroad and the human resources staff and managers who are responsible for the recruitment and promotion of the workforce. We argue that migration is an important process in the construction of the contemporary workforce in post‐industrial service economies and that migration status should be understood as intersecting with gender in the production of a gendered performance at work.     

Forging an Identity as a Newly Qualified Worker in the Non-government Community Services Sector

Forging a professional identity is commonly assumed to be a key objective for new graduates transitioning to work. However, the extant literature on professional identity development gives minimal consideration to the role of contemporary work conditions such as increased contract-based employment and occupational instability in carving out a work identity. These workforce trends are particularly pronounced in the non-government community services sector, where worker mobility is high and workers often occupy roles that are not profession-specific. In light of these trends, this article seeks to broaden existing understandings of professional identity development. Focus groups were conducted with 24 newly qualified workers with degree-level qualifications in social work and the human services employed in the community services sector in Queensland. The findings suggest that these workers held a variety of allegiances, which were not necessarily aligned with a profession but instead shaped by the interplay of personal, professional, and organisational factors.     

Explaining movements of the labor share in the Korean economy: factor substitution,markups and bargaining power

This paper emphasizes the role of market power, in both product and labor markets, in determining the labor share of income in the Korean economy. It presents an efficient bargaining model incorporating imperfect competition in product markets. This model shows how capital-labor substitution due to capital-augmenting technological progress or other factors, and changes in markups and the bargaining power of workers affect the labor share. Empirical analyses show that there is little support for explanations based on capital-labor substitution. Furthermore, a structural vector autoregression (VAR) model is proposed that can identify the effects of changes in markups and the bargaining power on the labor share. The VAR model applied to the period since the early 1980s demonstrates that both changes are influential, and especially for the manufacturing sector, long-run movements of the labor share are explained almost equally by variations in the markup and bargaining power.     

THE SPATIAL DISTRIBUTION OF BLACK EMPLOYMENT BETWEEN THE CENTRAL CITY AND THE SUBURBS

The share of fast food restaurant jobs held by blacks is smaller in the suburbs than in the central city. This is of interest because expected wages are higher in the suburbs. Estimating a model of the racial composition of the restaurant's workforce, we find that 36 percent of the difference in black employment share between central city and suburban firms is attributable to the fact that suburban firms are less frequently served by public transit. City/suburban differences in the race of managers and customers also play an important role, accounting for 29 percent of the difference.     

Temporary Work in the Public Services: Implications for Equal Opportunities

This article examines the impact of the growing number of temporary employment contracts in the public sector on equal opportunity theory, policy and practice. Quantitative and qualitative data from two case study local authorities are utilized to examine the mechanisms by which temporary work becomes an equal opportunities issue. A strong association between part‐time work and temporary employment status is demonstrated as an important aspect of the gendered nature of temporary work. Links between ethnicity and temporary work are less clear but are based upon the insecurity of targeted funding for teachers and the under‐valuation of the skills of the workers concerned. The data indicate that temporary workers are largely excluded from equal opportunity policy and practice, bringing into question a concept of equality that can permit less favourable treatment for certain groups of workers. It is argued that public sector restructuring, particularly concerning decentralization and the quest for flexibility, has facilitated the differential treatment of employees, thereby fundamentally eroding the basis of equal opportunity policy and practice.     

INDUSTRIAL DYNAMICS AND THE NEOCLASSICAL GROWTH MODEL

This paper studies industry-level dynamics and demonstrates the ability of a modified neoclassical growth model to capture a range of empirical facts. The paper begins by using U.S. data to document skilled and unskilled labor trends within industry sector classifications as well as industry sector output trends. Using Current Population Survey data from 1968 to 2004, it is shown that the ratio of skilled workers to unskilled workers employed has risen in all industries. The absolute increase in this ratio was larger in the more skilled industries, while the growth rate was larger in the less skilled industries. Furthermore, using national income account data, it is shown that relatively high-skilled industries have accounted for an increasing share of output over time. A version of the neoclassical growth model is then constructed to match these observations. One important feature of this model is a structure that introduces new goods into the economy at each moment of time. The model is able to capture a rich set of labor market movements between sectors and between skill levels as well as changes in the relative output shares across industries, yet preserves many nice features of the neoclassical growth model. ( JEL E13, J20, 030)     

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.     

Inclusion or Exploitation? Irish Women Enter the Labour Force

This article seeks to examine the division of women into committed and uncommitted workers by gender theorists. The article uses interview data from a study of women in service sector employment in Ireland to ask how (or even if) women actually make the decision to enter the workforce and why they stay there. Moreover, we explore how some Irish women themselves experience these changes.     

Worlds apart? Public,private and non-profit sector providers of domiciliary care for older persons in Ireland

Domiciliary care of older persons is changing rapidly in Ireland. The most significant recent changes are the emergence of private home care companies, the introduction of a new policy instrument (cash-for-care) and the professionalisation of the non-profit (formerly voluntary) sector providers. This research project set out to explore the central differences and commonalities between care work in the public, private and non-profit sectors. Sixty-three care workers across the three sectors participated in semi-structured interviews and focus groups. The content of these was analysed under six different themes. Separate interviews were conducted with middle managers involved in the recruitment, training and supervision of care workers. Several salient differences between the three sectors were discovered, most importantly with regard to social protection, composition of the care workforce, and flexibility in work tasks; all of these in turn have implications for the quality of employment and quality of care.     

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)